HomeMy WebLinkAbout10-01-14 EDC Minutes'It
EN HILLS
CITY OF ARDEN HILLS, MINNESOTA
ECONOMIC DEVELOPMENT COMMISSION
OCTOBER 1, 2014 8:00 AM
CITY HALL --1245 WEST HIGHWAY 96
CALL MEETING TO ORDER
Chair Ed von Holtum called the meeting to order at 8:05 a.m.
ROLL CALL
Present: Chair Ed von Holtum and Commissioners Dan Erickson, Jim Huninghake
(arrived at 8:30 a.m.), Steve Heikkila, and David Radziej
Also Present: Council Liaison Ed Werner; City Administrator Patrick Klaers; Associate Planner
Matthew Bachler; and Jonathan Weinhagen, Vice President, St. Paul Area
Chamber of Commerce.
1. APPROVAL OF AGENDA
It was the consensus of the Commission to accept the agenda as presented.
2. APPROVAL OF MINUTES
It was the consensus of the Commission to accept the August 6, 2014, meeting minutes as
presented.
3. UNFINISHED AND NEW BUSINESS
A. Business Retention and Expansion
Associate Planner Bachler indicated staff is asking the EDC to review the Business Retention
and Expansion Service Proposal submitted by the St. Paul Area Chamber of Commerce
(SPACC) and is recommending that the EDC make a formal recommendation to the Economic
Development Authority recommending that the City contract with the SPACC to implement a
Business Retention and Expansion Program in 2015. He commented that any recommendation
made by the EDC would be presented to the EDA at their meeting on October 27, 2014.
EDC Minutes
October 1, 2014
Page 2 of 6
Associate Planner Bachler explained that at the previous EDC meeting on August 26, 2014,
staff presented a preliminary proposal from the University of Minnesota Extension for a
customized BR&E program for the City. He indicated staff discussed this proposal with the
EDC and there were concerns regarding the number of meetings that would be required to
implement the program, the scope and length of the survey that was to be administered, and the
cost of the program which was approximately $9,000. He explained that staff had done research
on alternative BR&E programs and has had a chance to meet with Jonathan Weinhagen of the
SPACC. He commented that the SPACC has submitted a formal proposal which was included in
the packet and the cost of that program would be approximately $5,000, He also indicated that
staff reviewed the proposal and believes it addresses many of the concerns that had been raised
by the EDC with the prior proposal.
Associate Planner Bachler asked Jonathan Weinhagen from the SPACC to provide some more
information on the proposal.
Jonathan Weinhagen stated that the SPACC has a long history of providing BR&E services to
communities throughout the east metro and was a founding member of the "Grow Minnesota!"
program. He commented that the SPACC shares the same concerns as the City with regards to
BR&E services, not only in the planning and implementation, but in the survey and how that is
received by the business community.
Mr. Weinhagen indicated the survey used by the SPACC is relatively short and direct in
comparison to the one used by the University of Minnesota Extension. He explained that the
SPACC is proposing a two phase approach to the BR&E program. First there would be an initial
survey of 20-30 companies that would be visited to collect information, and the secondary piece
would be putting in place a sustainable approach for ongoing visits. He also explained that the
SPACC would do some non -intensive training with the Task Force on effective business
interviewing and relationship building.
Commissioner Radziej asked whether the visits would be a blend of the "Landmark" and
"Emerging" businesses or if they would be focused on the "Landmark" businesses only.
Mr. Weinhagen indicated it would be a blend of the "Landmark and "Emerging" businesses but
anticipates the initial visit would be with the "Landmark businesses only.
Commissioner Heikkila questioned if the training mentioned for Phase Two would allow City
staff to take on the ongoing visits or if there would still be participation from the Chamber.
Jonathan Weinhagen indicated that a manageable approach would be to visit 10-12 companies
a year which can be sustained without additional consulting services. He commented that what
has worked well in other communities is an hour visit consisting of one or two City
Councilmembers, a member from the Chamber, and a member or two from the EDC.
EDC Minutes
October 1, 2014
Page 3 of 6
Chair Von Holtum commented that this seemed like a lot of people and asked how this is
coordinated.
Mr. Weinhagen indicated that with other communities the City Manager decides who will
attend on the City side, and the EDC is traditionally just cycled through. He commented that 5-6
people may seem like a lot but they have found that companies are very receptive to this and
usually like to provide a tour of the business, and that the survey piece is usually administered at
that point.
Mr. Weinhagen reported that part of Phase One would include recruiting Task Force
participants, which would include the EDC. He indicated that in most communities the EDC has
been charged with the BR&E on an ongoing basis and do it as part of the body of their work.
Commissioner Huninghake indicated that he feels one of the challenges is getting to know the
business owners, who are the decision makers, because they are busy.
Commissioner Erickson agreed this would be a challenge and indicated he feels the smaller,
expanding businesses would benefit the most from the BR&E program.
Chair von Holtum questioned Mr. Weinhagen on what the biggest challenges would be in going
forward with the BR&E program.
Mr. Weinhagen indicated the biggest challenge is getting buy -in from this commission and the
City Council for the BR&E program. He also stated that when administering the program they
will experience challenges on leveraging relationships.
Commissioner Erickson questioned what kind of commitment this would mean for the
members of the Task Force.
Mr. Weinhagen stated he believes a group of two people would be sufficient for the initial visits
to the 20-30 companies and that each group would commit to doing 2-3 visits.
Discussion ensued regarding the BR&E program and it was the consensus of the commission
that the EDC, staff and City Council are all very receptive to the program.
Chair von Holtum asked for a motion to recommend this to the EDA.
Commissioner Radziej motioned to recommend the BR&E program to the EDA, seconded by
Commissioner Huninghake. The motion carried unanimously (5-0).
B. 2014 Work Plan and Review
Associate Planner Baehler mentioned that the 2015 work plan would be presented to the EDC
for approval at the December 3 meeting. He indicated at that point the EDC should have a better
sense of whether or not the Council was in favor of moving forward with the BR&E program
EDC Minutes
October 1, 2014
Page 4 of 6
and that in the event Council decides not to move forward, there would need to be some follow-
up discussion at the December meeting in terms of how to fill out the 2015 work plan.
C. State of the City Report
Chair von Holtum commented on the good turnout for the State of the City event.
Council Liaison Werner thanked Associate Planner Bachler and City Planner Streff for
coordinating the meeting and taking care of the issues that came up at last year's State of the City
event.
City Administrator Klaers commented that at Tuesday night's Q&A, most questions were
regarding transportation issues and that there were no questions in regards to TCAAP. He then
gave a brief update on upcoming road construction projects.
Commissioner Huninghake indicated he felt it was a good idea having someone from MnDOT
at the event because of the traffic issues.
Commissioners Erickson and Huninghake commented that delivering the invitations to the
businesses was a nice touch as opposed to mailing the invitations.
It was the consensus of the Commission that the event went very well and that another State of
the City should be held in 2015.
4. UPDATES
A. TCAAP Update
Associate Planner Bachler provided an update on recent City Council action related to TCAAP,
stating that the Council has had two meetings with Gateway Planning, the sub -consultant on the
TCAAP master plan, and are working on the zoning regulations for the TCAAP redevelopment
project. He stated that City and County staff, as well as the City's financial consultants, have
been meeting with commercial developers to review the draft document and that the developers
were invited to attend a couple of Council work sessions to provide comments to the City
Council. He further stated that on September 8, representatives from Anderson Companies, and
Cushman & Wakefield/Northmarq attended the City Council work session and discussed the flex
office space that will be located along the western side of the spine road.
Associate Planner Bachler mentioned that Council has concerns about the area being
dominated with warehousing uses and that more focus be put on manufacturing and hi -tech
industries that offer higher quality jobs. He went on to explain that the feedback received from
the development community at that meeting was not to focus on limiting the amount of space used
for warehousing, but be more focused on the design of the building requiring developers to put in
place a well -designed building with ceiling heights a maximum of 20 feet in height.
EDC Minutes
October 1, 2014
Page 5 of 6
Commissioner Radziej commented that setting a maximum ceiling height of 20 feet may be too
restrictive. He added that in the printing industry for example, the typical minimum ceiling
height for facilities ranges from 24 to 28 feet.
Commissioner Huninghake noted that for many businesses, the ceiling height of a facility is a
significant concern.
Chair von Holtum did not want to see restrictions on maximum ceiling heights that would scare
off potential users.
None.
B. Commission Members
C. Council Liaison
Council Liaison Werner indicated that the Council has asked for feedback from the
Commission on placement of a 3rd Gateway sign which would be located at the northeast corner
of Cleveland and County Road D. He informed that the sign would be 4.5 feet high and 7.3 feet
long, would have internal lighting, and would cost approximately $10,000.
Discussion ensued and the Commissioners agreed with the location of the 3d Gateway sign.
Council Liaison Werner indicated that a preliminary levy for taxes payable in 2015% was set at
5% and the motion carried 3-2.
D. Staff Comments
None.
Commissioner Radziej asked why part of the sidewalk by Walgreens, located south of County
Road E on Lexington Avenue, is closed.
Associate Planner Bachler stated he believed the retaining wall that is starting to fail has
impacted the sidewalk. He further explained that the owner, Wellington Management, has been
looking for a potential tenant for that site. Associate Planner Bachler indicated he would follow-
up with Public Works Director Maurer as to whether the sidewalk and retaining wall are in the
right-of-way or are on private property.
Commissioner Radziej questioned whether the Fire Department was still thinking of
downsizing the number of facilities they operate.
Council Liaison Werner commented that they were thinking of selling Station #1, which is in
Arden Hills.
EDC Minutes
October 1, 2014
Page 6 of 6
City Administrator Klaers stated that there are no immediate plans to close it but there has
been discussion that when the duty crew program is fully implemented, that the station is not
necessary in order to provide services.
ADJOURNMENT
Chair von ltu adjourned the meeting at 9:20 a.m.
Ed von Holtum, Chair Jillmtmacher
Co unity Development Director