HomeMy WebLinkAbout6.C. Economic Development General Business
6. C.
SHAKOPI E
TO: Mayor and City Council
Mark McNeill,City Administrator
FROM: Lori Hensen,Deputy City Clerk
DATE: 10/23/2013
SUBJECT: Economic Development(F)
Action Sought
Attachments: economic
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2014 Budget Discussion
October 23`d, 2013 Worksession
Economic Development:
The initial preliminary 2014 budget provides for a transfer to the EDA fund in the amount of$330,000. i
These funds will be utilized as follows:
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• Enhancement of the initial fagade loan program,to the newly revised commercial exterior
improvement program. Currently,the city has had only one applicant for the previous concept,
and due to recent Council action the program has been expanded and enhanced.The 2013
budget,which provided for$150,000, has not been utilized--this funding can be carried over in
the EDA fund, and used for projects in 2014 and beyond.
• The Main Street Program has been introduced to the Community and Council in recent weeks.
The program may require a further commitment of City funds for 2014.These funds,as well as i
funding from the Shakopee Chamber,could be used for staffing needs, if the Council so chooses.
To staff the main street coordinator position would require approximately$25,000 for a one
year period, which provides for the city's portion of a full time staff person.This position would
be hired by the Chamber,and is a full time position, as this is a requirement of the Main Street
Program. The Chamber and City would collaborate on this position and this project,which will
involve the commitment,time and funding of City, including the EDAC and EDA and the
Chamber.This program would return to the Council for review and discussion each year,as the
funding would provide resources for the upcoming budget year.Staff has recently discussed this
position with the Chamber,and will be able to discuss on Wednesday evening.
• A low interest loan program has also been introduced and discussed with the EDAC.This
program would provide low interest loans to eligible commercial ventures for a variety of
projects,such as property acquisition, purchase of property and equipment. Council has not
reviewed or discussed the proposed project in any detail, but it may be a concept to consider in
2014 or future years.
• The current cash balance of the EDA fund is approximately$455,000.This will be significantly
drawn down in early 2014 for the payment of the commitment to Emerson Rosemount of
$350,000. However, the fund will also receive year end transfers into the fund of$300,000, j
which will bring the base of the fund position back up,for on-going projects and newly proposed
projects.
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The EDA funding through the General fund transfer has been in place for only a limited time.This is one i
area of the budget that is evolving and changing as the community continues to address and encourage j
growth and development. As mentioned earlier in this memo,much of the activities that flow through
the EDA funds are coordinated with outside entities,and need to be fluid and flexible to meet the needs
of the interested parties who contact the City specific to housing,commercial growth or on-going i
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business expansion.As the City develops a greater history and higher level of staff experience,the
requests and funding needs of this group may expand and change.
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