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HomeMy WebLinkAbout4. Approval of Minutes: March 21, 2006, April 18, 2006 OFFICIAL. PROCEEDINGS OF THE ECONOMIC DEVELOPMENT AUTHORITY SHAKO PEE, MINNESOTA REGULAR SESSION MARCH 21, 2006 Members Present: Steve Clay, Matt Lehman, John J. Schmitt, Steve Menden, and Terry Joos Members Absent: None Staff Present: Mark McNeill, City Administrator; Kris.Wilson, Assistant to the City Administrator; Judith S. Cox, City Clerk; Jim Thomson, City Attorney; R. Michael Leek, Community Development Director; and Bruce Loney, Public Works Director/City Engineer I. Roll Call. President Lehman called the meeting to order at 7:38 p.m. Roll call was noted as above. II. Approval of Agenda. Item #4, Downtown Facade Improvement Program was deferred. MendenlSchmitt approved the agenda as amended. Motion carried 5-0. III. Approval of Bills. Clay/Menden moved to approve bills in the amount of $620.56 for the EDA General Fund. Motion carried 5-0. IV. Downtown Facade Improvement Program. This item was deferred to a later meeting. V. Other Business. None. VI. Adjourn. MendenlClaymoved to adjoumthe meeting at 7:41p.m. Motion carried 5-0. &~))'o/ J dith S. Cox A Secretary Jessica Adamietz Recording Secretary OFFICIAL PROCEEDINGS OF TH.E ECONOMIC DEVELOPJ\.1ENT AUTHORITY SHAKOPEE, MINNESOTA REGULAR SESSION APRIL 18, 2006 Members Present: Steve Clay, Matt Lehman, John Schmitt, Steve Menden, and Terry Joos. Members Absent: None. Staff Present: Mark McNeil, City Administrator; Kris Wilson, Assistant to the City Administrator; Judith S. Cox, City Clerk; Jim Thomson, City Attorney; R. Michael Leek, Community Development Director; and Bruce Loney, Public Works Director/City Engineer. I. Roll Call. President Lehman called the meeting to order at 7:59 p.m. Roll call was noted as above. ll. Approval of Agenda. Joos/Clay approved the agenda as noted. Motion carried 5-0. ID. Approval of Consent Business. Menden/Joos moved to approve the Consent Business. Motion carried 5-0. IV. Approval of Minutes. Menden/Joos moved to approve the minutes of the February 21,2006 meeting. (Motion carried under the Consent Business). v. Approval of Bills. Menden/Joos moved to approve bills in the amount of $321.00 for the EDA General Fund. (Motion carried under the Consent Business). VI. Downtown Fa~ade Improvement Program. Kris Wilson presented the EDA with information to reconsider the areas that are eligible for,the Downtown Fa~ade Program, which is currently primarily limited to commercial properties in the downtown area. . These areas were chosen because of their historical value in the hopes that if there was help in funding, the City would not lose them and the uniqueness of our community. These areas are asked to be looked at and consider broadening the area to allow more commercial properties the chance to take advantage of this funding. Pres. Lehman brought this issue back to the EDA because in the past there have been other areas of the community have been labeled slum and blighted, but those areas are not allowed to access this funds. Official Proceedings of the April 18,2006 Shakopee Economic Development Authority Page 2 Pres. Lehman stated that it should be opened up and provide for more equitable funding. Cncl. Joos stated that the area had been opened up in the past, but there was no interest from the larger area. Therefore they decided to focus on the smaller, currently proposed area where there was more support. Ms. Wilson noted that the City does have $46,000 remaining from the Small Cities Development Program which can be used to make deferred loans to residential properties in the older portions of town. Pres. Lehman asked what the problem would be if the area was expanded and no one from the expanded area wanted to participate. Cncl. Joos stated that he was looking for consistency and cohesiveness throughout the process. He doesn't want to expand now because of complaints and then in the future contract because of complaints. Cnc1. Clay stated that he agreed with Cncl. Joos in that it wasn't about competition, but it is about the ability to stay.clearly focused. This area lends itself to that because it is easily recognizable and unique. Pres. Lehman stated that this could be broadened to include the Sth Avenue corridor very easily because on two different occasions this area has been deemed slum and blighted. Cnc1. Clay stated that those areas are in need, but should require separate attention from the Downtown Fa9ade Program. Mr. McNeill clarified a couple of issues. The City's 1999 application to the federal Small Cities Development Program did have income restrictions on it. The Downtown Fa9ade Improvement Program does not have income restrictions on it, so there is the flexibility to establish different areas ofeHgibility. Mr. McNeill stated that staff needs criteria from the EDA as to who should be eligible and how should the funds be expended. Pres. Lehman asked if the EDA requires income eligibility, would businesses in the area be eligible for the program. Mr. McNeill stated that he didn't know if they would be eligible for the Small Cities Grant Program. Ms. Wilson stated that she was unsure if there were income guidelines on the commercial.properties in the late 1990s under the grant. Official Proceedings of the April 18, 2006 Shakopee Economic Development Authority Page 3 Cncl. Menden stated that there is $50,000 total available. Applicants could take up to $25,000. Thenifno one wanted it, they could expand the eligible area. Cncl. Menden stated that as he understood it there are current design criteria for this area of town and therefore it made it easier to identify those types of improvements that are acceptable for the grant. Cncl. Menden stated that it could be possible to use those design criterion in other areas of town, but he wasn't quite comfortable opening that up until there was a sure understanding of that. Cncl. Menden stated that he was comfortable with opening the money up to the current downtown area for a certain period of time and then if no one uses the funding, it should be opened up to a broader area because someone should utilize this funding. Mayor Schmitt stated that the restoration for Bill's Toggery utilized this grant. Mayor Schmitt asked if 120 days is still the current time frame to have the program available. Ms. Wilson stated the program is currently set up to be available to the core area until September 1, 2006 and if it goes unused it could be broadened after that date. If the area is broadened, the EDA will need to decide atthat time what projects will be acceptable for funding. Pres. Lehman asked how the other $46,000 will be allocated. Ms. Wilson stated that funding is available to property owners in the target area that meet the income guidelines. The program is being administered by the Carver County HR.A. MendenlSchmitt moved to proceed with the program targeted at the core downtown area through September 1, 2006 with the option of extending it beyond that date if funds are not utilized. Motion carried 4-1, Lehman dissenting. Vll. Results of Business Retention & Expansion Survey. Ms. Wilson reported the results ofthe Business Retention and Expansion Survey completed jointly with the Shakopee Chamber of Commerce. A 56 question survey was mailed out to 102 businesses and 28 responses were received. Restaurant, retail, and hospitality businesses were not included, and the main focus was on businesses in the industrial park. Overall the results were positive. Survey results included: . Several businesses that responded have been in business here for several years. Three businesses stated they have been here for over 100 years, and the average response was 22 years. Official Proceedings of the April 18,2006 Shakopee Economic Development Authority Page 4 . 17 ofthe 28 respondents reported increasing sales, 10 reported stable sales. . 16 of the 28 respondents reported increasing profits, 7 stable, 3 decreasing. . 13 of the 28 respondents reported increasing market share; 13 reported stable, 1 reported decreasing. . 21 of the 28 respondents are locally owned, which might suggest that locals are more likely to respond. . 15 respondents reported expanding operations in Shakopee in the last three years, 4 respondents reported reducing operations. . 4 respondents reported that their current facilities are inadequate for expected needs in the next three years, 2 report they may relocate. . Some respondents reported that they have less than 10 employees, others over 100. . 8 respondents project increasing labor needs, 19 report stable employment needs. No one said they anticipated reducing staff in coming years. . 24 respondents say the labor supply in this area is adequate to fill current and future needs, 3 say it is not. . 4 companies report difficulty in recruiting new employees. . 17 companies reported that their transportation needs were being met, 2 said they were somewhat met, and 1 said they were not met. . 25 companies said their internet needs were being met, 3 said they . were not being met. . The companies reported that their utility needs were mostly stable, no reports of decreasing needs. . Most companies reported that they have an increasing need for telecommunication services. . 3 respondents reported an excellent business climate in Shakopee, 14 said good, 10 said average, and 1 said poor. . 1 respondent reported that Shakopee's physical appearance is excellent, 15 said good, 10 said average, and 2 said poor. . 4 respondents made mention of taxes, some said to reduce, while others stated to keep stable. . The City's growth was reported as both a strength and a weakness. . Location along 169 is a great strength. . Small town feel along with workforce, schools, and cleanliness were mentioned as strengths. . Traffic was listed as a weakness, along with under utilization of river front and too much growth. I Official Proceedings of the April 18, 2006 Shakopee Economic Development Authority Page 5 Pres. Lehman asked if the transportation and employment issues were from businesses located in a certain area of town. Ms. Wilson stated that she could look into this. encl. Joos stated that the information is very interesting and it should be shared with the County and Rep. Kline because these issues directly relate to the County and the State. Cnc1. Menden asked how the information was useful and what we plan on doing with it. Ms. Wilson stated that a thank-you letter would be sent out to all those businesses that responded. The survey is a broad based survey to understand the impressions and concerns from businesses. There were no red flags raised on anything in particular, so it will be used as general information to inform future Economic development activites. Cnc1. Clay asked what kind of follow up was done to those thatdidn't respond. Ms. Wilson stated that the non-responder list was divided up between the Chamber of Commerce and herself, and phone calls were made. Mayor Schmitt stated that he felt this was a good response. Cnc1. Joos stated that typically about a 1/3 response is a good level. VIII. Other Business. Cnc1. Menden stated that we now have a full economic development advisory committee and asked Ms. Wilson how this was going. Ms. Wilson stated that there are 5 seats and 3 are new members. The committee has seen the results of the survey. They are currently doing orientation to familiarize themselves with TIP (Tax Increment Financing), etc. Ms. Wilson reported that the committee is going well, and the members are very interested and engaged. IX. Adjourn. MendenlSchmitt moved to adjourn the meeting at 8:34 p.m. Motion carried 5-0. ~~J-Cr;L . J dith S Cox DA Secretary Jessica Adamietz Recording Secretary