Loading...
HomeMy WebLinkAbout04-27-15 'It ,-ARIQN HILLS Approved: July 27, 2015 CITY OF ARDEN HILLS, MINNESOTA ECONOMIC DEVELOPMENT AUTHORITY MEETING APRIL 27, 2015 6:00 PM—CITY COUNCIL CHAMBERS CALL TO ORDER/ROLL CALL Pursuant to due call and notice thereof, President Grant called to order the Economic Development Authority meeting at 6:01 p.m. Present: EDA President David Grant; EDA Commissioners Brenda Holden, Fran Holmes, Dave McClung, and Robert Woodburn Absent: None Also present: Secretary Patrick Klaers; Treasurer Sue Iverson; Public Works Director Terry Maurer; Assistant City Engineer John Anderson; Executive Director Jill Hutmacher; City Planner Ryan Streff; Associate Planner Matthew Bachler; Finance Analyst Dave Perrault; and City Clerk Amy Dietl 1. APPROVAL OF AGENDA MOTION: EDA President Grant moved and EDA Commissioner Woodburn seconded a motion to approve the meeting agenda as presented. The motion carried unanimously (5-0). 2. APPROVAL OF MINUTES A. January 26, 2015 MOTION: EDA President Grant moved and EDA Commissioner Woodburn seconded a motion to approve the January 26, 2015, Economic Development Authority meeting minutes as presented. The motion carried unanimously (5-0). 3. NEW BUSINESS ARDEN HILLS EDA MEETING—APRIL 27, 2015 2 A. Business Retention and Expansion Executive Director Hutmacher stated that at the January 26, 2015, Economic Development Authority meeting, the EDA approved a contract with the St. Paul Area Chamber of Commerce (SPACC) to administer a Business Retention and Expansion (BRE) program. Since then, the Economic Development Commission has been working to draft a survey instrument, recruit volunteer interviewers, and select businesses that will be targeted for interviews. Training for BRE volunteer interviewers will be held in May. Interviews will be scheduled for June, July, and August. Executive Director Hutmacher explained that the EDA requested action is as follows: 1. Approve the BRE survey instrument; 2. Accept the priority business interview list; and 3. Provide direction regarding the list of BRE volunteers. Executive Director Hutmacher indicated that the draft survey instrument is based on the Grow Minnesota! survey which is used by the Minnesota Chamber of Commerce. Using a similar instrument to Grow Minnesota! will allow the City to compare survey responses with other municipalities. The EDC added questions specifically addressing Arden Hills' topics including the revolving loan fund, the State of the City event, and the efficiency of the local transportation network. Executive Director Hutmacher reported that the BRE volunteers will be trained to administer the survey using a conversational approach. This will advance the City's primary BRE goal of building relationships with the business community. EDA feedback on the survey instrument is requested. Executive Director Hutmacher explained that SPACC used sources from the Minnesota Department of Employment and Economic Development (DEED) to compile an initial list of Arden Hills businesses. The EDC and City staff refined the list based on local knowledge. Based on advice from SPACC, BRE interviews are targeted for the following categories of businesses: • Businesses in high-growth industries (construction; professional; business services; and education and health services); • Business that are not in high-growth industries but which have experienced significant growth over the past few years; • Large employers; and • Legacy businesses (long-term Arden Hills businesses that are closely identified with the local business community) Executive Director Hutmacher stated that SPACC recommends that the City complete 30-40 interviews, and 47 priority interviews have been identified with the understanding that some businesses will not choose to participate in the program. Interviews are also proposed with some ARDEN HILLS EDA MEETING—APRIL 27, 2015 3 of the larger landlords/property management companies such as Transwestern, Wellington, Roberts Management, and Inland Shannon Square. Transwestern is the manager/broker for significant space in the Red Fox/Grey Fox business district and of the North Park office complex on County Road E. Wellington, Roberts, and Inland manage/lease most of the City's retail space. Executive Director Hutmacher indicated that the EDC members have volunteered to participate in the BRE interviews. They have also recruited former or current members of the Planning Commission and Financial Planning and Analysis Committee. The EDC felt that these groups were experienced with business issues and would be excellent representatives of the City. In addition to the membership of the EDC, Roberta Thompson (Planning Commission, Chair), Clayton Zimmerman (Planning Commission), Jim Huninghake (EDC, former), and Jim Ostlund (FPAC, former) have volunteered as BRE interviewers. Thus far, a total of 11 interviewers have been identified; however, she noted that a few additional interviewers would be helpful. EDA President Grant stated that he believed that Ted Brausen would be a good individual for the City to contact. He also thought that Walgreens would be another interesting contact as it is a new business in the City of Arden Hills. He asked if staff would be able to get answers to each of the questions in a short interview. Jonathan Weinhagen, St. Paul Area Chamber of Commerce, commented that he would be pre- populating all of the public information within the interview to allow time for the core set of questions during the interviews. EDA President Grant suggested that interesting, or repeated, comments regarding the City be shared with the Council. Mr. Weinhagen explained that repeated comments would be "red flagged" and shared with the City. This would allow for the survey to be adapted or to have questions added. Commissioner Holmes suggested that information regarding salary ranges be gathered. She thought this would be valuable in order to project salary ranges for TCAAP. Mr. Weinhagen reported that this was a data set that companies were not interested in sharing. It was his opinion that job growth information would be more beneficial than the actual salaries. Commissioner Holmes disagreed and thought that the question should be asked. EDA President Grant indicated that the City could visit glassdoor.com in order to review salary information for larger companies. Executive Director Hutmacher recommended that the significant, legacy firms in Arden Hills be interviewed. ARDEN HILLS EDA MEETING—APRIL 27, 2015 4 EDA President Grant commented that the small data sample available within Arden Hills may not be representative of the whole. He explained that additional research may have to be conducted in order to find out where the high paying jobs are. Commissioner Holden questioned the purpose of the survey. Mr. Weinhagen stated that the survey would assist the City in understanding business retention and expansion. He believed that positive relationships would be built with the local businesses through the survey process. Executive Director Hutmacher indicated that two people would attend each interview. It was her hope that she and Associate Planner Bachler would attend as many as possible. Commissioner McClung inquired if Wilkerson Guthman would be interviewed. Mr. Weinhagen stated that this was the case and noted that a retention visit has already been conducted. Commissioner McClung recommended that a representative sample be conducted of the small businesses in Arden Hills. He suggested that businesses with ten or less employees be added to the survey list. Executive Director Hutmacher explained that several small businesses were included on the list of businesses to be interviewed. Commissioner Holden requested that another financial institution be added to the interview list. Mr. Weinhagen reported that after prioritizing the list of businesses to be interviewed in the City it was determined that the financial institutions in Arden Hills were franchises and not local. Commissioner Holmes suggested that the attorneys on the list did not need to be interviewed. She then questioned what in the survey would assist the City with situations like Smith's Medical. Mr. Weinhagen restated his belief that the survey process would be a relationship building activity which would assist with business retention. Councilmember Holmes disagreed and stated that she didn't think anything could have been done by the City to keep Smith's Medical. B. Budget Parameters Treasurer Iverson stated that the EDA is a blended component unit of the City of Arden Hills which makes EDA Funds "Special Revenue Funds" of the City. Annually, the City is required by ARDEN HILLS EDA MEETING—APRIL 27, 2015 5 the State to set budgets for the City's General Fund and all Special Revenue Funds (which includes all of the EDA Funds). These EDA Funds are: EDA General Fund EDA Revolving Loan Fund EDA TIF District#2 Round Lake EDA TIF District#3 Cottage Villas EDA TIF District#4 Presbyterian Homes Treasurer Iverson commented that overall, the EDA General Fund is in good financial condition for 2015 with an estimated reserve balance of$271,325. However, the EDA and City Council need to identify dependable, reoccurring revenue for EDA activities as the recent primary funding source of revenues (from the Round Lake Road TIF District) expires in 2015. The fund balance being projected at the end of the year includes money (approximately $80,000) that is intended to be used for the Gateway Signs program. Treasurer Iverson reported that most of the expenses for economic development related activities are going to exist regardless of whether they are in the City's General Fund budget or if they are in the EDA's General Fund budget. The majority of the economic development expenses are for personal services and other services/charges which are estimated to be in the $133,000 per year range. In 2015, the EDA budget includes a $30,000 transfer from the General Fund to help finance EDA operating expenses. Treasurer Iverson noted that staff is looking for Council input on the EDA budgets before the budgeting process begins as this will be included as part of the City's overall budgeting exercise. He noted that the EDA is scheduled to review the preliminary budget at its July meeting and the final budget at its October meeting. Commissioner Holden asked about the status of the Round Lake TIF district. Treasurer Iverson stated that this district is scheduled to be decertified in 2015. Commissioner McClung asked if the City Council also approves the EDA budget. Treasurer Iverson stated that this is the case. 4. EDA COMMISSIONER COMMENTS None. 5. ADJOURN MOTION: EDA President Grant moved and EDA Commissioner Holmes seconded a motion to adiourn the Economic Development Authority meeting. The motion carried unanimously (5-0). ARDEN HILLS EDA MEETING—APRIL 27, 2015 6 EDA President Grant adjourned the Economic Development Authority meeting at 6:44 p.m. �k xamj Jill H macher David Grant Executive Director EDA President