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HomeMy WebLinkAbout3.c. Economic Development Needs/Participation CITY OF SHAKOPEE Memorandum TO: Shakopee Mayor and City Council Mark McNeill, City Administrator Shakopee Public Utilities Commission John Crooks, Utilities Manager FROM: R. Michael Leek, Community Development Director SUBJECT: Discussion of Shakopee Economic Development Efforts MEETING DATE: June 6, 2011 INTRODUCTION: At the scheduled joint meeting, the City Council and Utilities Commission will review economic development efforts to date, and steps to be taken in the future. DISCUSSION: Background: Economic Development Ad Hoc Committee In 2009, the Shakopee City Council convened an ad hoc committee to discuss and make recommendations regarding the strategy(ies) the City should consider to position itself for positive economic development , especially as the city, state and nation emerged from the recession. Initially, the ad hoc committee was composed of two members of the Shakopee City Council (Terry Joos and Patrick Heitzman), representatives of the Shakopee Chamber of Commerce (then - president Carol Schultz, Ben Ohlander /Klein Bank, and Kevin O'Brien /Greystone Construction) and representatives of the Downtown Partnership (Lauri Glenn and Brian Turtle). Because the ad hoc committee viewed the utilities commission as a key player in economic development efforts, then - marketing staff Tami Petrich was invited to, and did become, a regular participant in the ad hoc committee's efforts in the summer of 2009. Other participants were Shakopee City Administrator Mark McNeill and Community Development Director Michael Leek. On November 4, 2009, the ad hoc committee reported its recommendations to the City Council. As can be seen from the first recommendation, the ad hoc committee C: \Documents and Settings \mmcneill \Local Settings \Temporary Internet Files\ Content .Outlook \318MDN4Q \CC_SPUC 0606201 1_econ dev (3).docx Page 1 considered it very important that the Commission remain a participant in the proposed reconstituted economic development advisory committee (EDAC) The specific recommendations were as follows; 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. [lt should be noted that the EDAC is advisory, so actually "closing a deal" is something only the City Council /EDA would actually be able to do.] 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 Avenue 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 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 C: \Documents and Settings \mmcneill \Local Settings \Temporary Internet Files\ Content .Outlook \318MDN4Q \CC_SPUC 06062011_econ dev (3).docx Page 2 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 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. 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 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 C: \Documents and Settings \mmcneill \Local Settings \Temporary Internet Files\ Content .Outlook \318MDN4Q \CC_SPUC 06062011 econ dev (3).docx Page 3 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. EDAC EFFORTS TO DATE: The EDAC began meeting in June of 2010. It is a seven - member body, and meets monthly at 6 p.m. on the third Wednesday of the month. Its meetings are generally held in the Council Chambers and thus televised. At its earlier meetings the EDAC adopted the attached work plan. The EDAC has made the following recommendations to the EDA /City Council since it began meeting, and these have been accepted by the EDA /City Council on a majority vote. . 1. Expand the current Facade Improvement Loan Program (FILP) to allow use of loan funds to a) remodel or modify the interior of a building and b) make other site improvements, such as landscaping. Expansion of the FILP program would require a budget amendment to dedicate additional funds, as well as a revision of the guidelines for use of the fund. (The policies regarding this loan program have recently been revised to accomplish the recommended change) 2. Consider city acquisition of sites and write down of the cost of such sites for use by private developers, but only when the property owner petitions the city to acquire the site. (The City has not been asked to consider site acquisition and write down to date) 3. City investment in additional infrastructure (sanitary sewer, water, electric, fiber, and others); (It is expected that the City will re- evaluate the feasibility of extending sanitary sewer to the easternmost section of CR 101, with the intent of making it a more desirable corridor for private investment. 4. Further marketing of available buildings and sites via the City's website and other media outlets; (The EDAC has recently sought proposals for the development of a marketing plan for the City of Shakopee. Their intention is to have a proposal developed later in 2011 for consideration by the EDA /City Council. 5. Encourage Scott County to review and reconsider its policy of not participating in tax abatement as a business subsidy. (This re- evaluation is expected to take place C: \Documents and Settings \mmcneill \Local Settings \Temporary Internet Files\ Content .Outlook \318MDN4Q \CC_SPUC 06062011_econ dev (3).docx Page 4 as a result of, or in connection with, the development of SCALE's economic development strategy. 6. The City should further explore the possibility of establishing or expanding a gap financing program, perhaps in the form of an RLF. (There is currently about $220,000.00 available in an RLF. About $100,000.00 of the funds came from EDA funds, and the balance apparently resulted from the re- payment of a loan to Challenge Printing (now Imagine! Print Solutions) LOOKING FORWARD: It is apparent that the Shakopee City Council and EDAC continue to view the Shakopee Public Utilities Commission as an important partner in the City's economic development efforts. The following are areas where the opportunities for partnership seem to have the most potential. • Marketing - The Utilities Commission can be an important partner in helping to shape the City's marketing plan, especially as it relates to attracting and securing new businesses or business expansion. For many businesses, the type and volumes of electric and water service available can be critical. • Responding to Prospects - In recent months, City staff has observed an "up tick" in the number of companies looking for new sites, and thus asking for information from the City. As noted above, for many businesses, water and electric service can be a key to a location decision. For that reason, in responding to such requests, the Utilities Commission can be a key partner with City staff, the EDAC and City Council in responding to such discussions. ACTION REQUESTED: After discussion, provide Utilities Commission and City staff with direction about other ideas for partnering on economic development efforts for Shakopee. R. Michael Leek Community Development Director C: \Documents and Settings \mmcneill \Local Settings \Temporary Internet Files\ Content .Outlook \318MDN4Q \CC_SPUC 06062011_econ dev (3).docx Page 5 Shakopee Marketing Development Creating the Pieces which will Shape the Future of Shakopee Agenda Managing Expectations - y Introductions 1 B ackground Objective � rt Scope Statement init.', c op e ._ .. , - � Deliverables , ` Project Schedule - Work Breakout Schedule � = e P T Timeline . -' - Initial Timeline for project plan Summary and Approval . ary.:4y Questions, Answers, and Feedback Introductions Minnesota School of Business — Project Management • Richard Anderson • Ashley Lebens • Linda Nowak • Tyler Anderson • Stephen Satterfield Objective Statement • Market the City of Shakopee by creating a memorable identity .„ which can be utilized to advertise tiµ the benefits and services available today, thereby attracting / , i { Y� v g and acquiring desirable businesses and consumers. i ‘Wk st Project Scope Statement Deliverables 1. Marketing Strategy for the City of Shakopee 2. Marketing Platform for common promotion 3. Memorable Identity for marketing the City of Shakopee Project Scope Statement Deliverables 1. Marketing Strategy for the City of Shakopee • Perform SWOT analysis to identify the current strengths, weaknesses, opportunities, and threats of the community • Deliver a new branding concept for the marketing and promoting of the City of Shakopee SWOT Analysis Steps to finding the strengths, weaknesses, opportunities, and threats • Interview the Chamber of Commerce • Research the City • Survey the residents of of Shakopee's Shakopee Website • Interview Shakopee's City Council • Interview the Mayor of Shakopee SWOT Analysis Steps to finding the strengths, weaknesses, opportunities, and threats • Refine the • Validate information • Outline initial initial SWOT researched SWOT analysis Analysis with and gathered Michael Leek • Revise initial analysis r • Final SWOT Analysis 44%, New Branding Concept Steps to deliver the Branding concept for marketing and promoting the City of Shakopee • Research the Target market • Interview Michael Leek • Create initial • Validate to develop an � outline for the � initial estimate of Branding Branding p the Marketing concept Concept Budget Michael Leek • Analyze SWOT analysis for common theme New Branding COncept Steps to deliver the Branding concept for marketing and promoting the City of Shakopee • Develop alternatives • Research • Revise Initial other cities to plan create ideas • Validate plan on how a city image is constructed • Final Branding ,..µ Concept Project Scope Statement Deliverables 2. Marketing platform for the City of Shakopee • Create a marketing platform for common promotion in alignment with the Chamber of Commerce, local businesses, and entertainment destinations Marketing Platform Steps to deliver the Marketing platform which aligns with the Chamber of Commerce, focal businesses, and entertainment destinations • Interview Shakopee's City council • Develop • Interview the .Create Research 4 • Chamber of • � project Goals MI* Guidelines Commerce • Interview Shakopee's entertainment destinations • Research other cities Marketing Platform Steps to deliver the Marketing platform which aligns with the Chamber of Commerce, local businesses, and entertainment destinations • Evaluate proposals • Present proposals • Develop Project to the EDAC, Decide on the Proposals � • Chamber of best proposal Commerce, and Shakopee's entertainment destinations Marketin g Platform Steps to deliver the Marketing platform which aligns with the Chamber of Commerce, local businesses, and entertainment destinations • Implement new Marketing .,, Platform Project Scope Statement Deliverables 3. Construct a memorable identity of the City of Shakopee to be implemented in the overall strategy • Perform research to incorporate the vision of Shakopee's City Council into a memorable and recognizable identity • Propose update revisions to the City of Shakopee's website to reflect the new identity Memorable Identity Steps to create a Proposal to update Shakopee's Website • Define Target Audience • Evaluate current • Research the Website • Initial City of Shakopee � .Interview � urop des toot 4 C tykCouncil the d Website • Research other cities Memorable Identity Steps to create a Proposal to update Shakopee's Website • Validate proposal • Combine • Revise Initial information a plan from the Marketing strategy and platform • Final Proposal Ti mel i ne Initial Time for creating the Project Plan A' rd ,, June L v , Au`S „ O PE N fi OPr E. I < OP EN O EN PE �,!`" -:4-p Ntrr , _ yid ,� _: lry'lr>�p� "i� .�sg 42xn?A ,v ' -4, ;... - :, t - ' On time! • t , * 4 ., ,* 4. .. ,,,i, ,•, : Summary Project Objective Deliverables Marketing Strategy Marketing Platform Marketing Identity Questions Are all of the pieces of the puzzle ready? Is there anything which was missed or should be added to the objective or deliverables? Thank You 'tit r '� ' l �. F � P . d F The Project Team has completed the initial phase or our project. Given your approval, our next step would be to complete a detailed project plan, identifying all the steps to complete this project.