HomeMy WebLinkAbout12.A. Recommendations of the Economic Development Ad Hoc Committee
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CITY OF SHAKOPEE
Memorandum
TO: Honorable Mayor and City Council
Shakopee Economic Development Authority (EDA)
Mark McNeill, City Administrator and EDA Executive Director
FROM: R. Michael Leek, Community Development Director
SUBJECT: Recommendations of the Economic Development Ad Hoc Committee
MEETING DATE: November 4,2009
INTRODUCTION:
Earlier this year, the Council invited the Shakopee Chamber of Commerce and
Downtown Partnership to join with two member of Council in developing
recommendations regarding how to position the City of Shakopee for economic
development into the future. The members of the Committee are;
City Council; Patrick Heitzman, Terry Joos
Chamber of Commerce; Carol Schultz, Ben Ohlander, Kevin O'Brien
Downtown Partnership; Brian Turtle, Lauri Glenn
Shakopee Public Utilities Commission (SPUC); Tami Petrich
The issue paper and recommendations from the Committee are attached for Council
review, discussion and action.
DISCUSSION:
The recommendations of the Committee fall into the following general categories;
. Reconstitution of a very active economic development advisory c,ommittee
(EDAC);
. Development by the EDAC of marketing efforts for the City in general and the
specifically identified areas of the City;
. Development and implementation of additional gap financing tools; and
. Coordination ofthese efforts with other projects and studies, such as the U.S. 169
Corridor Coalition, Scott County study of interchange alternatives for U.S.
169/CR 69.
In addition to the Committee's recommendations, attached for the Council's information
is a copy of an e-mail from Fatima Franzen regarding thoughts that she has had about
economic development. Ms. Franzen is a member of the City's Park and Recreation
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Advisory Board (PRAB), and intends to be present for the Council's discussion of the
Committee recommendations.
RELATIONSHIP TO VISIONING:
Because the Committee's recommendations relate to the economic development and
vitality of Shakopee, this supports Goal E - Financially strong
AL TERNA TIVES:
1. Offer and pass a motion adopting the recommendations of the Economic
Development Ad Hoc Committee as presented, and directing staff to take the steps
necessary to implement the recommendations.
2. Offer and pass a motion adopting the recommendations of the Economic
Development Ad Hoc Committee with revisions, and directing staff to take the steps
necessary to implement the recommendations.
3. Table the item for additional information and discussion at a future meeting.
ACTION REQUESTED:
Offer and pass a motion adopting the recommendations of the Economic Development
Ad Hoc Committee as presented, and directing staff to take the steps necessary to
implement the recommendations. 75d~
R. Michael Leek
Community Development Director
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Michael leek
From: ffranzen@comcast.net
Sent: Tuesday, October 27,200910:35 AM
To: Michael Leek
Subject: My strategy to attract more businesses into Shakopee
Dear Michael
I agree it would be a good idea to incorporate my thoughts in your proposal.
I would like to present to you a new focus, new strategy towards increasing revenue and attracting and bringing
in more businesses into the city of shakopee.
The focus would be to change the mindset from "we have always conducted our businesses in this manner" to
what can we do different to increase our revenue?
This new strategy would entail the Shakopee Chamber of Commerce to aggressively sell to communities and
various organizations within Twin Cities metropolitan area and outside the metro area. This strategy I
understand has been used in larger Chamber of Commerce.
Maybe there are organizations located in Roseville looking to expand their markets and portfolios south of the
river. Creating more businesses in Shakopee will increase more participation in community activities resulting
in increased revenue. These businesses will have employees preferably living in Shakopee.
If I had an opportunity to bring in more businesses into Shakopee, I would do it in a heart beat.
From my experiences in selling for the Hospitality Industry and United Way of Minneapolis, I took advantage
of my resources and strong selling skills and was able to bring in more businesses resulting in increased
revenue.
The focus for the City of Shakopee should be:
1. How similar are we and how do we differ from our competitors?
2. What new strategies would be effective in increasing our revenue?
3. What new products are attractive and a selling point for our markets? and various ways of getting our
community involved.
The city of Shakopee should be identifying areas of unnecessary spending, reducing costs,establishing budgets
which make good business and legal sense, reducing taxes, and promoting a stronger community.
The bottom line is to attract and invite various existing and new businesses into Shakopee which will increase
revenue and create more jobs.
This gives you an idea of where I am coming room.
Sincerely
Fatima Franzen
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CITY OF SHAKO PEE
Memorandum
TO: Honorable Mayor and City Council
Shakopee Economic Development Authority (EDA)
Mark McNeill, City Administrator and EDA Executive Director
FROM: Economic Development Ad Hoc Committee (the Committee)
SUBJECT: Recommendations of the Economic Development Ad Hoc Committee
MEETING DATE: November 4, 2009
INTRODUCTION:
The Committee met several times to discuss strategies for economic development for the City of
Shakopee. The following provides a discussion of the factors considered by the Committee, sets
forth the Committee's recommendations and discusses the relationship of the recommendations
to the City's vision and goals.
DISCUSSION:
A. Available Commercial/Industrial Areas:
Early in its process, the Committee reviewed maps that depicted areas of the City that are guided
and/zoned for commercial and industrial purposes, and which may have undeveloped land
available. The areas identified included the following;
. The commercially guided area at CR 18 south of U.S. Hwy. 169;
. The Valley Green Business Park area;
. Dean Lakes;
. The Downtown and First Avenue areas;
. The Marschall Road (from CR 101 to U.S. 169) and CR 17 corridor from about CR 42 to
the intersection of282/CR 17/U.S. 13;
. U.S. Hwy. 169 and CR 69 area (including areas that are currently in either Jackson or
Louisville Townships).
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After reviewing the location, land use guiding, zoning, visibility and other factors related to these
areas, the Committee concluded a number of these areas, such as the CR 18, Valley Green and
Dean Lakes areas were set up for development to occur as the economy recovers. In other
words, these areas have the infrastructure, visibility and other factors that will make them
attractive to development as the economy recovers, and do not appear to require specific,
targeted efforts by the City for that to occur. That said the Committee believes future marketing
efforts should include marketing the City generally and these areas should also occur, and that
available funding/assistance will likely have relevance for these areas of the City and for specific
projects in the future.
The Committee concluded a marketing strategy needs to be developed and implemented for the
City generally and its commercial and industrial areas, but also concluded that there are three
areas of the City that merit specific, focused efforts. These are areas where land use and guiding
may require revision; additional infrastructure may be required; and where there may be a need
to identify more specifically what types of development are desirable for these areas.Those that
the Committee feels have the highest priority are the Downtown and First A venue Corridor and
the U.S. Hwy 1 69/CR69 area. A third area that the Committee felt should receive attention is the
CR 17 corridor roughly from CR 42 to the southern reaches of the city. The Committee believes
that further work is required to make sure that these areas are fully ready to market in the future.
The Committee identifies the Downtown/First Avenue as running from about Rahr Malting on
the west to about Marschall Road/CR 17, then south to the new CR 16, and includes the
Downtown. The Council may wish to discuss whether it agrees with this geographic description
of the area. The Committee concluded that the focus for the Downtown/First A venue Corridor
should be on enhancing it as a retail and entertainment destination for both residents of the city
and others from outside the City. The Committee did discuss that the differing character of
portions of this corridor might result in different or separate marketing approaches for portions of
the Corridor. It will be important for the City, the Downtown Partnership, the Chamber of
Commerce, and other relevant partners to coordinate their marketing and recruitment efforts
related to this area.
The Committee discussed the desirability of attracting businesses to Shakopee as well as other
commercial and industrial areas in Scott County so as to provide expanded employment
opportunities that do not require crossing the Minnesota River, or which could attract workers
from north of the Minnesota River. For that reason, the Committee concluded that it is important
for the City to focus also on the U.S. Hwy. 169/CR 69 area. In the City's recently adopted 2030
Comprehensive Plan this area is guided for expanded commercial and industrial/business park
development. The U.S. Hwy. 169 corridor is also identified in the Scott County 2030
Comprehensive Plan as an important corridor for future business development. If, in the long
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term, the City and County are successful in creating more jobs in this corridor that attract
workers from north of the river, it could help to increase the importance ofCR 69 as a commuter
route, and perhaps mitigate some of the long term impacts of increased traffic on the CR 101
corridor from the 101 bridge to the CR 101 bridge on the east.
With the recent completion of the CR 17/TH 13 study, and the conclusion that CR l7/TH 13
from U.S. Hwy. 169 to the southern county boundary will become a "principal arterial," The
Committee observed that the City may want to re-evaluate land use south of CR 42 to take better
advantage of the status of this roadway and maximize the economic development and job
creation that would occur in the Shakopee portion of this corridor. The City's 2030
Comprehensive Plan currently guides land uses in this roadway corridor for lower density
residential uses, and it may be necessary to fe-guide some portiones) of this corridor for business
uses that take advantage of this future principal arterial.
B. Funding/Assistance Alternatives:
The Committee began by looking at a number of alternatives for providing economic
development assistance, including;
. Tax Increment Financing (TIF);
. Tax Abatement;
. Gap financing loan alternatives (e.g. Twin Cities Community Capital Fund/TCCCF);
. Locally established programs (e.g. gap financing revolving loan funds);
. Programs available through the State's Department of Employment and Economic
Development (DEED).
. Shakopee Public Utilities Commission energy savings programs and incentives.
This review led to a discussion by the Committee of what it saw as the major issues that should
be addressed, and these included the following;
. That more alternatives are needed to provide "gap financing" for businesses/projects as
the economy recovers. The Committee members noted that the gap in financing for a
project that could move forward has grown from 10-20% of the total cost of the project to
as much as 30%. Traditional sources of gap financing, such as TIF and tax abatement, do
not seem to be adequate to address this growing gap. Thus, the Committee concluded
that the City should re-dedicate the efforts of its EDAC to (among other things) develop
and recommend to the City Council for implementation additional gap financing tools
that the City could offer.
. That the City Council should consider broadening its assistance policy from its current
focus on the creation of jobs at 275% of the federal minimum wage to include
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consideration of assistance for projects that have a significant impact on local tax ba~~,
but for which wage rates be may consistent with the market but less than the current
benchmark.
. That the current county approach to appraising and assessing new commercial/industrial
buildings puts them at a disadvantage against existing buildings. The Committee
discussed that another approach may be more desirable (an income approach was briefly
discussed), and perhaps should be considered as the subject of a joint study, perhaps
through SCALE.
C. Marketing:
Again, the Committee concluded that it is important for the City to reconstitute its EDAC, and
for the EDAC, among other things, to develop and implement a marketing strategy for the City
generally. Implicit in this charge is the idea that the EDAC would be the point of contact for
potential business relocation and expansion prospects, and would follow through on the
development of incentive packages for them, consistent with the City's policies
The identification of the DowntownlFirst Avenue and U.S. 169/C.R. 69 geographic areas as
areas that require additional attention begins to suggest, at a minimum, possible marketing
themes for these areas, which might be loosely described as follows;
. SHAKOPEE'S DOWNTOWN/FIRST A VENUE CORRIDOR - The
destination for those wanting to experience the entertainment and retail heart of an
historic river city. It was noted in the Committee's discussion on September 14th that
making this area a stronger destination requires that there be a critical mass of destination
businesses (e.g. specialty retail, restaurants, entertainment venues, etc.)
. U.S. HWY. 169/C.R. 69 - The location south of the Minnesota River for high
quality business development and expansion.
Obviously, the actual marketing "pitch" provided above is merely illustrative and the EDAC and
Council may, in fact, that the marketing approach would be quite different. But they do suggest
that the specific marketing plans for these areas may differ from one another because the target
audiences are different.
For the DowntownlFirst Avenue Corridor, it would seem that there are (at least) two target
audiences; a) the additional businesses that it would be desirable to attract to this area, and b) the
entertainment and retail customers for businesses in this area. A marketing plan to the first
audience is likely to require demonstrating that;
. The area is today a vital and desirable place to be~
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. That the businesses targeted would fit well with the existing business community;
. Space in the area is not only available, but attractive and affordable at the same time;
. That there are sufficient, potential customers both locally and in the larger market area.
A marketing plan to the second audience will need to demonstrate, among other things, that
. This is an appealing and exciting place to visit and/or stay;
. Information (whether on The Web, in print or otherwise) about the area is readily
available and understandable;
The Downtown Partnership has in the past undertaken some specific efforts to develop a
marketing plan and package of incentives for businesses that might locate in this area, as well as
targeting potential customers, and can probably be very helpful in developing the specifics of a
marketing plan for the Downtown and First A venue area.
The development of a specific marketing plan for the U.S. Hwy. 169/C.R. 69 area may be quite
complex. Only the NE quadrant of the intersection is within the City of Shakopee. Currently,
the area is not served by all of the infrastructure that will make it a good place to do business
into the future. It seems to make sense to coordinate the City's efforts to position this area and
market it with the SCALE efforts that will likely result in an overall marketing approach for the
169 corridor. Also, the Chamber of Commerce and its membership can be of enormous help in
understanding what factors may play the largest roles in business decisions about locating or not
locating in this area, as well as what infrastructure, community characteristics and assistance are
likely to strike the right chord in marketing to businesses that might locate or expand to this area
of the City and County. The City should consider including Scott County and the adjoining
townships
D. Related Studies and Efforts:
There are number of existing and looming studies, as well project-related efforts that relate to,
and will likely have an impact on both of the focus geographic areas of the City identified above.
It is recommended, for both the short and long term, that the City (and perhaps through the City
its partners, remain fully engaged in these studies and projects. These include the following;
. The U.S. Hwy. 169 Corridor Coalition (the Coalition) - Earlier this year, the Coalition
was formally established. The 169 Corridor extends from Mankato on the south to the
northern Metropolitan suburbs on the north. The general purposes of the Coalition are to
identify beneficial transportation and transit improvements related to the Corridor, to seek
funding for these projects, and to implement these projects, all for the purpose of
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maintaining the Corridor as a vital and positive force for economic development for
communities along and impacted by the Corridor.
. Scott County Association for Leadership and Efficiency (SCALE) - SCALE is a
joint powers effort made up of representatives from Scott County, its cities, townships,
school districts and the SMSC. SCALE has established a transportation task force and an
initiative to provide by the year 2030 at least 50% of the jobs to be held by workers living
in the County. This is largely in light of the limited funds that will be available for
transportation projects; i.e. we cannot afford to simply focus on sending workers to the
north and the east across the river when the main impact of doing so is to continue to
increase congestion and its related problems. There are several sub-tasks related to these
initiatives, but perhaps the most significant in this context, is the joint economic
development/land use/transportation planning aimed at determining (among other things)
a) whether sufficient land is guided for land uses that will result in the creation of this
level of jobs, b) whether the guided land is located appropriately for the types of
business/jobs that will be sought, c) whether plans for infrastructure (roads, transit, sewer,
water, surface water management, communications systems) are adequate to serve these
areas as they come online, and d) whether marketing efforts are appropriately designed
and targeted, both locally and countywide, to attract and keep the kinds of jobs and
businesses that are being sought for these areas.
. Scott County Transit Review Board (TRB) and Transit Planning Team (TPT)
Transit Feasibility for the Dan Patch Line and the U.S. Hwy. 169 Corridor.
The TRB and TPT are taking steps to develop a feasibility study. The 169 component of
the study is specifically relevant to the 169/69 area. At this time, Metropolitan Council
plans do not identify U.S. Hwy. 169 as a "Transitway;" however preliminary MNDOT
studies have identified a ridership potential to rival the numbers generated by a Duluth or
Rochester corridor. Without the "transit way" designation, neither the City nor Scott
County is able to compete for funds that could result in beneficial transit improvements
that could help to serve this area.
. Land UselRoad and Interchange Design Study for CR 69 at U.S. 169 - County staff
has shared that there are state "turn back" funds available for this roadway, and that the
County would like to partner with the City of Shakopee that will analyze desirable land
uses in the area and result in a roadway design and project that could serve the areas need
well into the future. This would be similar to the CR 101 study which is currently
underway.
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DRAFT RECOMMENDATIONS:
1. The City of Shakopee should reconstitute its Economic Development Advisory Committee
(EDAC). The EDAC should, ideally, include representatives of other groups like the
Chamber and Downtown Partnership who can bring business, business financing, and
development experience to the EDAC. The EDAC would be expected to assist in the
implementation of the City's economic development and marketing strategies, including
working with prospects directly to develop a package that can be recommended to the City's
EDA and City Council. The Committee recommends that the EDAC as described above
(with identified contacts for the City, Chamber, Partnership, SPUC and others) would;
a. Provide the "welcome mat" for potential new businesses;
b. Provide information on the cost of coming to and doing business in Shakopee, as well
as making connections that are important to businesses;
c. Sell the City; and
d. "Close the deal" on new businesses and business expansions. With respect to City
assistance, ultimately the City Council would need to approve and actually close any
deal/agreement. The intent is to have the task force to set the stage for that to occur.
2. The City of Shakopee should develop and implement a marketing strategy for the City
generally, and should focus some of its efforts on making three areas of the City ready for
economic development. Not in priority order, these areas are;
. The DowntownlFirst A venue Corridor - The City Council should determine
whether it agrees with the Committee's description ofthe geographic area. The City
should work with its partners (e.g. the Downtown Partnership, Chamber of Commerce
and others) to enhance this area of the City as a retail and entertainment destination.
Given the differing character of the various segments of this corridor, the Council should
consider whether more than one marketing plan may be needed.
. The u.s. Hwy.169/CR 69 Area - The Committee concluded that this area is
the next best opportunity for significant, larger scale business and employment
development. The Committee noted that it is important to preserve the ability to develop
these on municipal services, and that there are already some projects being approved
outside the City that might limit the areas potential. The Committee concluded that it is
important for the City to work with Scott County, Jackson and Louisville Townships, the
U.S. Hwy. 169 Corridor Coalition and SCALE ensure that the development potential of
this area is maximized. As a result of its recently adopted 2030 comprehensive plan,
Scott County is already taking steps to rezone some township areas to business or
commercial preserve zones in order to preserve their long-term development potential.
. CR 17 Corridor - A recent County study concluded that this roadway,
combined with TH 13 will serve as an important north-south principal arterial in the
future. The City should re-evaluate land uses in this corridor to determine whether there
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are appropriate areas along the corridor in Shakopee that should be reserved for future
commercial and/or industrial development.
3. Funding Mechanisms - Additional funding tools are needed to address the growing
gap in project financing. The City's EDAC should be convened as soon as possible to
complete the work of a) developing possible funding tools, b) recommending them to the
City CouncillEDA and c) putting them in operation. In this process, the EDAC should
evaluate the possibility of making them available for such activities as 1) existing building
renovation, 2) tenant improvements, 3) business relocation costs. In anticipation of future
development opportunities, the City should consider putting in place other assistance
alternatives and use of TIF and/or tax abatement for a wider range of projects in the future.
4. Marketing - Following the Committee process, continue working with the
Chamber of Commerce, the Downtown Partnership and other partners to develop specific
marketing plans for the Downtown/First Avenue and U.s. Hwy. 169/C.R. 69 areas. The
development and execution of these marketing plans should be coordinated with the other
studies and efforts identified above. In other words, a) information from these studies may
be useful in developing the marketing plans, b) it may be possible to coordinate some
marketing activities with some ofthe identified organizations (e.g. the U.S. Hwy. 169
Corridor Coalition may in the future have a contingent of businesses that are members, and
who can be an important resource), and c) the studies may bring to light other aspects of
these areas that should be highlighted in their marketing plans.
5. Ties to Other Efforts - The City of Shakopee, and its partners in economic
development, should remain fully engaged in the studies, efforts and projects identified
above, as well as those which may arise in the future. Decisions made in these studies and
projects will have significant impacts on the long-term development and health of both the
Downtown/First Avenue and U.S. l69/C.R. 69 areas. They, in turn, may have direct and
indirect impacts on the marketability ofthese areas and the marketing strategy/is that are
appropriate for them.
RELATIONSHIP TO CITY VISION STATEMENT:
The City of Shakopee has adopted a Mission, Vision and Goal Statements. The
recommendations of the Committee relate very directly to those statements that have been
bolded below, and clearly support the City's long-term vision and goals.
MISSION STATEMENT:
The mission of the City of Shakopee is to provide the opportunity to live, work, and play in a
community with a proud past, promising future, and small-town atmosphere within a
metropolitan setting.
VISION STATEMENT:
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Twenty years from now Shakopee will be known and valued as a unique city...
... Where a vital and historic downtown anchors an active riverfront district; and
where the Minnesota River serves as a beacon for residents and tourists;
The identification of the Downtown, First Avenue/Riverfront and Marschall Road as an
area that should be specifically targetedfor establishing and/or enhancing the character
of this area, and its attractiveness for residents and non-residents alike.
... Where we support high quality, life-long educational opportunities; where
employees receive living wages; and where both local businesses and corporate
headquarters are welcomed and well-supported;
GOALS:
In addition to the adoption of the Vision Statement, the City Council adopted the following as
the City's Primary Goals;
A) Active and healthy community.
B) High quality of life.
C) Great place for kids to grow up.
D) Vibrant, resilient and stable.
E) Financially strong.
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