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HomeMy WebLinkAbout2. Recommendations of the Economic Development Ad Hoc Committee , , .. 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 ofthe recommendations to the City's vision and goals. DISCUSSION: A. Available CommerciallIndustrial 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 A venue areas; . The Marschall Road (from CR 101 to U.S. 169) and CR 17 corridor from about CR 42 to the intersection of 282/CR l7/U.S. 13; . U.S. Hwy. 169 and CR 69 area (including areas that are currently in either Jackson or Louisville Townships). 1 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 l69/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 ofthe 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 A venue 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 ofthe Minnesota River. For that reason, the Committee concluded that it is important for the City to focus also on the U.S. Hwy. 1 69/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 2 consideration of assistance for projects that have a significant impact on local tax base, 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 Downtown/First Avenue and U.S. l69/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 ofthe 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 Downtown/First 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; 4 . . 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. l69/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 ofthe 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 5 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 Use/Road 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. 6 , 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 Downtown/First A venue Corridor - The City Council should determine whether it agrees with the Committee's description of the 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 ofthe 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 7 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 Council/EDA 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. l69/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 of the 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. 169/C.R. 69 areas. They, in turn, may have direct and indirect impacts on the marketability of these 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: 8 , ~ 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 targeted for 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. 9