HomeMy WebLinkAbout05-16-07 'It
,ARVEN HILLS
ECONOMIC DEVELOPMENT COMMISSION
WEDNESDAY, May 16, 2007
7:30 A.M.
City Council Chambers, Arden Hills City Hall
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I. CALL MEETING TO ORDER
[I. ROLL CALL /G
III. APPROVAL OF MINUTES
A. April 25, 2007
IV. ECONOMIC DEVELOPMENT STRATEGIC PLAN — Chair Kunkel
• A. Review Revised Plan
B. Discuss Presentation to City Council
V. ADJOURN �i v6
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• City of Arden Hills 'C r
1245 West Highway 96 •Arden Hills Minnesota 55112
Phone 651.634.5120.Fax 651.634.5137 /
www.ci.arden-hills.mn.us
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Executive Summary
Arden Hills Economic Development Commission has a mission to provide vision
• and direction to the economic development efforts for the City of Arden Hills. In
the context of this broad mission, the priorities for AHEDC are:
1. Ensure a sustainable, profitable, and competitive economic climate in the
City;
C 2. Jdentify and build local capacity to support economic development in the Deleted:Idenitiry
City;
3. Consider and evaluate outside capacity to enhance the economic
development in the City;
4. Improve the economic security of Arden Hills' families
5. Enhance the City's Value of Conservation; and Deleted:
6. Prepare Arden Hills'residents to be productive, positive contributors, Deleted:youth
equipped with life skills that are valued in the future.
-_ Deleted:agency
To pursue these priorities, the DC._will follow a strategic plan through 2012, 1.
Deleted:1
comprised of the y„goals and objectives presented below, In addition, this Deleted:29
strategic plan addresses organizational excellence—the alignment of every facet Deleted:herein
of the Arden Hills Economic Development Commission to support effective
economic development delivery and execution in the City. The 25..,goals Deleted:29
Deleted:five
identified in this plan are organized around four,cornerstones for economic
development:
• Building an Organization that Supports Economic Development Deleted:T
Creating a Community that FosterSEconomiC_Activity Deleted: Can
Retaining the Existing Business Base Deleted:Investment
Attracting New Investment Deleted:r
a Deleted:Creating a Strong
Approvals and Adoptions Workforce$
This plan was adopted by the Arden Hills Economic Development Commission
at their regular meeting on August 16, 2006, Bruce Kunkel presiding.
The plan was then forwarded to the Arden Hills City Council for review and
approval. This plan was received by the Arden Hills City Council at their
regular meeting on October 9, 2006, Mayor Beverly Aplikowski presiding:
a
Strategic Plan for Economic Development Page 1 of 21
Acknowledgements
This Economic Development Strategic Plan is the result of the concerted
effort of the Economic Development Commission led by Bruce Kunkel. We •
are especially thankful to Bruce for his leadership in this effort as well as all
he and his commission members do for the City of Arden Hills. Also serving
on the Arden Hills EDC are:
Chris Ashbach
Dale Beane
Robin Davidson
Kevin Kelly
Nancy Kneeland
Ray McGraw
James Paulet
Edward Werner
,While the planning and preparation of this report was a coordinated effort in Deleted:¶
.....
every sense, the following key staff member,was responsible for individual Deleted s
Deleted:ere
components of the document:
Deleted ¶
Karen Barton, Community Development Director
.........
Special thanks are also extended to th attendees at all of the one-on-one Deleted: following individuals
p � and groups which actively
interviews and phone calls;,strategic partners to the City;,and members of contributed to this process:
Deleted:,
the community at large who provided input via the survey process_for.their Deleted;,
active contribution to this__process.
Strategic Plan for Economic Development Page 2 of 21
Introduction
• Community and government leaders across the nation have come to realize
their actions can change, alter, and direct the condition of their local
economy. The economic quality of life of the residents and the success of
businesses many times are directly influenced by the policies and leadership
Deleted:have the influence and
of those who create a climate conducive to economic growth,_A strong power to
economy.provid.es benefits_to,all.who experien_ce..It while a weak ec..onom.y Deleted:
putsbusinesses residents at risk to._the economiceffects._of external
Deleted:Those who chose to
forces. change is bound to happen. The choice to be made is whether the shape their future;can. Those
who chose to avoid their future
change will be shaped by the community or by forces beyond its control. often find it shaped by forces
outside of their control.
Economic development strategies are developed by communities who chose _
Deleted:. A strong economy
to shape their own future. provides benefits to all who
experience it while a weak
economy puts businesses and
residents at risk to the economic
In areas with strong economies, local governments do not struggle to fund effects of external forces
essential services and are usually able to provide expanded programs
benefiting all that reside in the area. In such areas, schools are strong,
streets safe and clean, park and recreation programs abundant, and the need
to provide social welfare programs for impoverished citizens is reduced.
Citizens living in an area with a strong economy enjoy consistent
employment, regular wage gains, opportunities for personal advancement,
and are able to reliably save for and invest in their future. Businesses are
able to plan for consistent expansion, hire full-time employees for the long
term, and are willing to risk significant capital, investing in their operations.
Communities grow closer, tight-knit; as young men and women, after
completing high school or college, remain in the area as growing employment
opportunities in their"hometown" capture their interest.
In areas with weak or declining economies, the opposite occurs. Local
governments struggle to fund essential programs, with budgets under
growing pressure to assist the impoverished. Residents have uncertain
futures, filled with personal anxieties, with limited employment opportunities,
stuck in subsistence level jobs. Businesses employ part-time workers and are
Strategic Plan for Economic Development Page 3 of 21
•
unwilling to risk significant capital because of an uncertain future. The best
and brightest young men and women must move from the area to seek
quality employment, which is not available in their hometown. •
Nationally, there are more than 6,000 economic development organizations,
Chambers of Commerce, and local, regional, and state government offices
working in some fashion to improve the economy of their respective areas.
Never in history has there been such an effort. Some organizations have
large budgets, better community cooperation, and a stronger commitment
from local government than others. These areas have the best chance to
either maintain or improve the economic quality of life and standard of living
of their citizens. Some areas, however, provide little or no attention to
economic development programs. They do not fully understand the need to
have a constant, aggressive economic development program just to maintain
the existing condition. In these areas, typically, the local economy is in
decline.
Even though local community leaders cannot control the actions or policies of
the federal or state government, they indeed can establish policies and
create local programs, which assist and foster economic growth. The Formatted Font Bold Italic
__....
premise, therefore, of this economic development strategy for Arden
Hills is that an active participation in fostering the economic strength
of the Citi is an essential and res onsib/e ction or the local unit of Deleted i°`ai e`onon;y
Deleted:
government, Formatted:Font:Bold,Italic
Formatted:Font:Bold,Italic
Formatted:Font:Bold,Italic
I Deleted:by
Formatted:Font:Bold,Italic
f
Deleted and a responsible
action thereof
Strategic Plan for Economic Development Page 4 of 21
Deleted:Economic Development
Economic Development Plan for Arden Hills Times havecha 9 d andwtn
them so has the underlying
The EDC represents the interests of Arden Hills' residents, but with,special economic structure in which we
• all live. This new economy
emphasis on the corporate residents that share and contribute to our requires smart thinking by our
leadership facilitated by new
community resources. ways of solving problems and
y collaborations with sometimes
unexpected partners. In the new
economy,the ticket to faster and
The EDC members gather and consider business community input and broader income gis
innovation.This econocono my puts a
recommend,to the City Council actions that support those interests• monitors premium on wont the Nobel
� laureate in economics Douglas
North calls"adaptive efficiency,"
�uslness activity;_and collaborates with other city committees and which refers to the ability of
institutions to innovate,
commissions to ensure a positive environment for economic development. continuously learn,and
productively change.As markets
fragment,technology
accelerates,and competition
Finding itself at a crossroad for growth, the City of Arden Hills engaged the comes from unexpected places,
learning,creativity,and
services of DeSCo in the summer of 2006 to create a strategic plan for the adaptation have become the
principal sources of competitive
City. This plan of action was developed from an interactive process advantage in many industries.
Enabling constant innovation
involving substantial community input¢using De_S_C_o_'s,proprietary needs to become the goal of all
organizations committed to
methodology develop and ex.perie..nce.of_Lreating strategic plans for prospering.Similarly,the g
communities throughout the United States. The final stage of our Deleted:spcial
Deleted:s
engagement resulted in the development of this strategic plan. Deleted:use of
Deleted:to be
The plan is segmented to address the EDC Strategic Imperatives: Deleted:not
Deleted:a point of isolation but
from
■ Build an Organization that wjll Support Economic Development Deleted`
• • Attract and facilitate a Community that Fosters Investment Deleted:¶
■ Retain and grow The Existing Business Base in the City of Arden Hills,
while at the same time tolerate churning in new business start-ups and Deleted:our
existing businesses, Deleted:ed
■ Develop and maintain strong relationships between City leaders and the Deleted:through
largest corporate, academic and,non-profit residents,and Deleted:,DeSCo went to work in
■ Create an environment attractive to educated, creative or talented Arden Huls to develop a.str, ..,121.
individuals to provide a strong workforce for the City's businesses, with Deleted:¶
t
emphasis on quality more than quantity. Deleted:
Deleted:T
Every economic development organization is pressed with deciding how Deleted:w
many of these five cornerstones their budget and staffing will allow them to Deleted::
Deleted (acadmenic
address. Once they determine which cornerstones they can approach they
Deleted:l
are then faced with determining the relative emphasis to be placed on each Deleted:>
cornerstone. In the formulative stages of the organization„more work is Deleted::
Deleted: much
Strategic Plan for Economic Development Page 5 of 21
required in the first three cornerstones; Organization, Product and Business
Retention & Expansion. More mature programs are able to shift,resources Deleted:their
toward the latter cornerstones; Workforce Development and Marketing. At •
its current level of funding the City of Arden Hills can only address three
cornerstones well. Based upon the needs discovered during our strategy
sessions we would recommend those to be the Product, Organization and
Deleted BRE Cornerstones
,BusinessRetention /Expansion. - ---- --- ---- -----
It is our recommendation that fundingand staffing Deleted the
g,be_secured over_the next
Deleted:of DeSCo
five years.,for full implementation of this plan. Assuming this to be an Deleted:is
achievable objective, we have written a five year economic development
........
strategy that addresses all five of the cornerstones. However, program Deleted:r
is heavily weighted toward the first three; organization, product and business
Deleted: however. It is the
retention and expansion consultant's recommendation
that these are the best
investments of the City's
economic development funds at
this time.
Omanizational Development Deleted:Project phasing into
three sections; Early,Middle,
,The first component essential to a successful economic developmentprogramLate. In a five year strategy
p p such as this early
implementation is recommended
is to ensure that the organizational capabilities are in place for ED to for less than two years from plan
adoption;mid term is for year's
succeed. In order to accomplish that success, we recommend that Arden two to four and late term is
Hills address the following organizational issues: years four through five. ¶
Deleted:Economic developm
1) Community and Economic Development Director. cannot occur withoutthe taf
and organizational support
necessary to make it happen. It
For economic development to succeed there needs to be someone in ! is,without question,the point
the communitywith these res onsibilities. Current) there is no one where all ED must start. Arden
- p y� Hills is not exempt from their
on City staff with the title of economic development director. Full need to address this area either.
time economic development staff is not warranted at this time. ¶ __ .........
However, a minimum of part time attention to economic development Deleted: title for such
is warranted- Our first recommendation is that the awareness of this Deleted:. In order to begin the
priority be recognized through title chan9e- We would recommend process of addressing this critical
issue an economic development
that the title and job d.escrlption,_.of the Community Development director needs to be put in place
.....::::::
Director be changed to Economic and Community Development Deleted: for consideration
Director as soon as possible. Deletes:s
2) Support Staff for Economic Development
The new,Community andE.c_.o.nomic.._Development Director cannot Deleted:Economic and
assume the additional responsibilities of their job without sufficient
capacity,to manage that task. If the City adopts the Deleted staff
Strategic Plan for Economic Development Page 6 of 21
•
recommendations of this plan, a full time economic development
administrative assistant will be required. This position may be able to
be supported from other capacities in the City's system in the early
. stages, but it cannot be sustained without permanent staffing added to
support this goal. Moreover, should TCAAP mature as expected, a
support person for economic development as well as a redevelopment
director will become a necessity in order to channel the growth
opportunities successfully. In the near term, hlspos(tion-needs to Deleted:this individual
be put in place to assume the support responsibilities necessary for Deleted
meeting this priority.
3) Council and Commission„Development Deleted:s
Arden Hills is at a crossroads in economic development. In order for Deleted new
the City Council to support the efforts of its staff, there needs to be a
higher level of expertise of economic development issues among,the Deleted:st
elected officials...and co.mmisslon,_m...e_.mbe.rs. Toward this end, we
would recommend up to six, three to four hour training sessions be
held at City Hall at a frequency of one every other month. These
sessions should be open to the public. Topics for discussion may
include:
Redevelopment of Existing Properties
♦ Main Street Revitalization
The Link Between Education, Workforce and Economic
Development
Incentive Utilization for Competitive Economic Development
♦ Economic Development Finance
Leadership in economic development. Why everyone is a
leader in Arden Hills.
4) Strengthening of City Administrator's Position
• Economic development in Arden Hills will succeed by maintaining_and
developing a_qualified_.staff...,..._ his is facilitated when the City Deleted:when city staff turnover
Administrator has full administrative responsibility of the City while
is reduced to levels
representative of the industry
the City Council bears the responsibility for policy and legislative roles. and preferably below that level.
We would recommend that a consultant be employed to h evelop Deleted:In order to accomplish
.the most effective roles and responsibilities for the City nage and OF that task,
Council in managing the city. y�� Deleted:must be commissioned
with
5) Community Awareness Deleted:c
Deleted:recommend
The third leg of the economic development is the community itself. If
the citizens understand the vision for economic development they will Deleted capable of
be much more supportive of an economic development mission. Deleted:ng
,Incorporating citizen support for economic development will require Deleted:Toward that end,they
that they be informed of the economic development focus of Arden need to be perceived as part of
theoverall economic
Hills. This will be accomplished by amending the Mayor's already well development
effort.
received newsletter to include a section on economic development Deleted:. In addition.11,t 11 h 11 is
newsletter will be appended to
6) Redevelopment Director the city's recently revamped
web page for download.¶
Strategic Plan for Economic Development Page 7 of 21
As a land locked community, Arden Hills is no longer able to stimulate
economic growth through the annexation of additional space. The
goal for the community now is to optimize the space available to them.
Even as,the TCAAP project,i.s.._dev....elo.ped, the need to be more actively Deleted:if
involved in the redevelopment of Arden Hills is s..till...present. This Deleted:were to never
positionwould be strongly skilled in the ability to take existing materialize
properties and convert them to new investment and job creation Deleted s itself today
opportunities.
Deleted individual
Deleted ..........
Product_(The Community of Arden Hills
The next most important component of an economic development program is
the product itself. In a similar fashion to a business taking their product to
market, the community needs to look at itself as a product that is being
bought, improved and resold over and over again. Enhancing the quality of
the product works directly at improving the customer's satisfaction of the
buying experience. Activities recommended for consideration in improving
the product include:
7) Gateway Plan.
Visitors to Arden Hills are often in the community before they realize
they are arrived. It is easy to move from a neighboring community
without realizing that one has entered Arden Hills. The paths along
which one moves into and out of a community are referred to as the
gateways. Arden Hills would be well served by placing modern •
welcome signs at its gateway entrances greeting visitors and
residents.
Deleted ¶
8) Way_finding Signage
Deleted:
Moving throughout the community can be made more effective
through the addition of way finding signs. As their name implies,
these signs help to direct travelers to specific destination points in the
community such as city hall, parks, shopping districts, schools, etc.
When incorporated into the design of the gateway signage, they add to
the style of the community creating a greater sense of presence that
someone has arrived in Arden Hills. We envision this in conjunction
with development standards for the City as a whole.
....._.......... .........
9) Central Business District. - Deleted ¶
Formatted:Bullets and Numbering
Strategic Plan for Economic Development Page 8 of 21
The lack of a city center is a common challenge for modern
communities. Many of these communities developed similarly to
Arden Hills, as a suburb from a larger metropolitan center. Once
critical mass was achieved, a community was formed by the first
• settlers. Since the "city" at that time was the larger metropolitan
downtown, the focus on creating a central business district did not
exist. However, as the community grew the need for its own identity
grew with it. As is frequently the case, the area for a city center was
not zoned or planned in the process.
Arden Hills has areas of higher retail and service concentration;
however they were planned for vehicular transportation and have the
look and feel of such a decision. A city center is typicallymore
pedestrian oriented consisting of:
a. Higher buildings
b. Zero lot line development (front and side yards)
c. Shared parking
d. Parks (typically passive)
e. Entertainment and dining venues
f. Niche retail
Areas like this do not currently exist in Arden Hills. This matter is
further complicated by the fact that the"historical" city center/main
street which many have defined as the area of Lexingtonnd_CR E has Deleted and CR
.......
been "abandoned" by the construction of the new City Hall along CR
96 . As city halls are traditionally located in the City Center, the
citizens in Arden Hills question where the true city center may be at
this time.
A master plan, zoning changes and development/redevelopment
• efforts designed to create a city center would benefit Arden Hills
greatly. This center would be addressed through the way-finding
signage presented elsewhere in this strategy and supported through
various fairs and festivals held purposely in this area to help create
greater awareness and presence for the city center in the community.
The EDC views this initiative as a top priority.
10) Trails & Recreation Program Formatted:Indent:First line 0.24",
Arden Hills is challenged by the presence of major segregating assets
which are its highways and lakes. These bisect the community into
small pockets allowing for separate and unique residential
opportunities. However, this separation also increases the need for
attention to be paid on linking the individual pieces together. Citizens
in Arden Hills reflect their interest in a trails program as they often site
the segmented nature of the community in discussions and surveys.
The City's Parks, Trails, and Recreation Committee (PTRC) developed a
Strategic Plan for Economic Development Page 9 of 21
•
master plan in 2002 . This plan links the trail system into a unified
network of pedestrian transportation throughout the community.
The EDC views this initiative as a top priority and fully supports the •
PTRC's Parks, Trails and Recreation Plan.
11) Development Sites.
As a land locked community, Arden Hills is rapidly running out of
developable sites for consideration. This shifts the community's
priorities from a development to a redevelopment nature. Due to
development pressures in and around the community, single site
redevelopments can and will most often be handled by market forces.
However, we may have some tracts of land that are under or non- Deleted k
performing and convert them to a higher and better use is what we
are talking about here. Arden Hills is at a point where master
planning entire neighborhoods, retail districts, business parks and yes,
the city center needs to move onto the public agenda. Through this
process, a more proactive vision for the city can be implemented.
Accomplishing this vision will require the city's participation in the
development process through financing, incenting and negotiating key
partners to participate in the process.
The EDC views this initiative as a top priority and further defines the
following areas as key redevelopment sites: The Red Fox/Gray Fox
business/industrial area, the former City Hall site on CR 96, the
Lexington and CR E business area, and the Chesapeake property in the
Gateway Business District.
Business Retention •
Business development represents some of the core activities of any economic
development program. Over time, the importance of a successful retention
and expansion program has risen over that of the traditional attraction
efforts. The most effective economic development dollars are those spent
working with existing businesses since most of the economic growth in a
community is the result of established businesses. Here are some activities
recommended for Arden Hills.
12) Business Retention Program.
Recent research on economic development effectiveness conducted by
numerous resources has consistently emphasized that a business
retention program focused on the base (those businesses that bring
Strategic Plan for Economic Development Page 10 of 21
•
money into the community) and the largest companies is the most
successful economic development strategy a community can design
and implement. The center piece of this program is the business
leader meetings. These should be conducted annually and focused on
removing the obstacles hampering business success. Based upon the
input received in these meetings, a series of business services can be
provided. Since they need to be directly responsive to the needs
presented during the interviews we can only offer suggestions of
programs that other communities have used successfully in the past.
If the recommended staffing levels are added to the community, we
see no reason why 30 to 40 visits per year cannot be conducted in the
community.
The EDC has initiated and will continue with a business outreach and
retention program through quarterly events.
Comms This initiative was
13) Sign Committee.
decided
EDC
It is unclear whether the city's sign ordinance is overly restrictive or if
it is just perceived to be. However, enough businesses in town have
the opinion that the sign code is too restrictive so it would be
beneficial for Arden Hills to convene a committee to review this
matter. These people would be instructed to review surrounding sign
ordinances and standards set forth by the American Planning
Association. The comments received by this committee can be
developed into a recommendation for the EDC and ultimately Council
to consider. Inclusion of the City Planner in this effort would be
essential.
The EDC is recommending the City review the number of complaints
received regarding the restrictiveness of the sign code and revisit this
in six to twelve months.
14) Business Issues on Community Web Page.
Arden Hills' new web page will work to provide a new more progressive
image for the community. This page can become a tool for business
retention by creating a section directed toward existing business
issues. By creating a business only section of the web page the
importance of this component of the economy can be emphasized.
Although the EDC recognizes the value in this initiative, we have
determined this not to be a priority at this time.
15) Resource Database. Deleted:
City Hall can position itself as more supportive of business if it creates ¶
a resource directory of business support services available from theFormatted:Bullets and Numbering_;
governmental as well as private sectors. This can be as simple as a
Strategic Plan for Economic Development Page 11 of 21
•
Word file that is periodically updated, printed and put on display in
City Hall lobby to something as sophisticated as an online database
accessible from the City's web page.
Although the EDC recognizes the value in this initiative, we have
determined this to be a later priority.
Business Retention activities are additive events, i.e., they do not
terminate quickly. Later year implementation of these new priorities
will see success when earlier efforts are sustained, perfected and
streamlined.
Business Attraction
Business attraction focuses on identifying companies from outside the area
and enticing them to expand or relocate into a community. The goal is
simple and straightforward; to secure new jobs and investment that off sets
business closures. It is glamorous work, frequently commanding the most
recognition of economic development efforts in the media. However, it is
extremely expensive and it offers relatively low return on the economic
development dollar. Since Arden Hills has not spent a great deal of time in
this area, is just now considering an attraction effort and has little budget
allocated toward business attraction, we would recommend that you focus
more on response capacity than lead generation. With that in mind, here are
some activities recommended for Arden Hills. •
16) Information Assembly and Readiness.
Having accurate and up to date information is critical for program
success. There are two places where a community can obtain a
competitive advantage in economic development; with the accuracy of
their data and the speed of their responses. We would recommend
that focusing on this capacity be a higher emphasis at this time as
opposed to actively marketing the community. This information
should be compiled and attractively packaged in a marketing folder
that can be easily distributed.
17) Network Development.
The development of a strong, strategic network is essential for the
near term marketing success of Arden Hills. A substantial amount of
lead generation occurs from the State Department of Commerce.
Lesser amounts of leads are generated from the utility company and
Strategic Plan for Economic Development Page 12 of 21
•
others come from the development community. These three sources
should be the primary source of lead generation for the Arden Hills in
the near future (1-3 years). Leveraging these sources can occur in
two ways. The simplest is introductory meetings conducted by the
city's economic development staff with the leaders in those three
sources listed previously. City staff should have an entertainment
budget that allows them to take these people out for lunch or after
business meetings as they develop relationships with these individuals.
The EDC also recommends involving surrounding communities to lead
an area-wide effort.
19) Joint Marketing.
As the program matures, the City would be well served to partner with
other surrounding cities in a joint marketing effort. This is a common
strategy in economic development as companies who are focusing on
an area are able to be approached earlier in the decision making
process through group marketing than they can be with individual
marketing. The sooner that the community can make an impression
on a company, the higher their chances are of securing the new
investment.
The EDC also recommends reviewing and expanding joint marketing
opportunities such as with the Twin Cities Chamber and Visit
Minneapolis North, for example.
25) Individual Marketing.
On rare occasions the community may opt to pursue its individualized
market efforts. As stated before, these are very expensive and
frequently result in little or no return on investment. However, for
highly targeted instance where a niche opportunity presents itself, the
community would be well served to have the capacity to pursue
specific prospects by having the appropriate funds budgeted.
Although the EDC recognizes the value in this initiative, we have
determined this not to be a priority at this time.
Strategic Plan for Economic Development Page 13 of 21
Deleted:¶
,Summary Thoughts ¶
Deleted:More than a few
A successful stra.tegic plan is, by definition, a usable plan — one that directs strategic planning efforts hav
run aground because they w
the City's economic development activities as well as its long-range view based on a fundamental
misunderstanding of what a
and that gelds meaningful improvements in effectiveness capacity d strategic plan is.Sometimes
y g P r P y anstrategic planning is confused
with other planning modalities,
relevance. each valid in its own right but
geared toward a different end
result.
To put it simply, not every plan is a strategic plan. A strategic plan is a tool Deleted:Strategic planning has
long been used as a tool for
that provides guidance in fulfilling a mission with maximum efficiency and transforming and revitalizing
economic development
impact. If it is to be effective and useful, it should articulate specific goals organizations.
Deleted:Recently,however,
and describe the action steps as we have in this document. As a rule, most skepticism about planning has
been on the rise.Political and
strategic plans should be reviewed and revamped every three to five years. economic uncertainty is the
norm and the pace of
This plan is no exception. technological and social change
has accelerated.There is some
disillusionment with planning
efforts that can't keep pace."We
jn its own right, this plan's primary goal is to energize the Arden Hills EDC did a pian five years ago and
haven't looked at it since,"is one
and to chart a course of action for the organization. This strategic plan for common complaint.or,"By the
time we completed our plan,we
Arden Hills has addressed the needs of the community in economic were already carrying out all of
its strategies." ¶
development while taking strides to ensure that the common pitfalls for plan ¶
However such comments miss
failure have been averted. AsArden Hills_,implements the plan in a logical, the point.Rather than expose
some fatal flaw in strategic
sequential manner,,it will energize its economic development efforts, and punning,they reflect a basic
misconception about the purpose
with it the community as a whole,, and value of strategic plannin
and what it takes for a plan a
the process to succeed.Inde
the process can prove pointless
and frustrating and the end
product of dubious value when
care isn't taken to set clear,
realistic goals,define actbor .-LI
Deleted:great
Deleted:All that lies next is to
Deleted:
Deleted:. In so doing,Arden
Hills
Deleted move
Deleted:,
Deleted:to a new standard of
performance that parallels that
of the most successful of
communities.¶
.._........
Deleted:We wish you success
with your implementation of this
plan.¶
DeSCoA
Strategic Plan for Economic Development Page 14 of 21 -
A endix A: Economic Development Strategies in a New
Economv
STimes have ch.anged,_and with them so has the underlying,economic
structurein which weall live. This new economy requires smartthnkin.g._by
ou..r lea....dersh.ii) facilitated by.new ways of_solv.i_n..g.prob.11.ems a_nd collaborations
.with someti.m,,es. une..x.pectedpartners. ...In-the new economy,.._the ticket,to
faster and broader incomegrowth_is innovation. This economy puts,a
premium on what the_Nobel laureate in economics Douglas...North calls
"adaptive efficiency,"which refers to the ability of institutions_to innovate,
continuo.usly._learn, and prodductively change. As_markets fragment,,
technology accelerates, and....competition.__comes.from....u.n.exp..e...cted_.p.l..a..ce...s...,.
learning,_creativity,and adaptation_have....become the_..p_rinci.pa.l sources of
competitive advantage in many industries. Enabling constant__innova..tion
needs,to.become the goal,of all organizations committed to_prospering_
Similarly, the goal
for metropolitanareasmust be to foster innovation anal...
adaptation - in.infrastructure, in institutio.ns both public a nd.__private.,....and.._.o.n
the part of individuals..
T,h.ese.e.fforts_need to_be proactive and designed.for the.-long.-term...
Government, civic, and business leaders need to challenge all_econ_o.m.ic
sectors and institutions, including their own institutions of,go_v_ernment,._to
become cultures of innovation. The consequences for a.ay_c_o_mmunity that
does not respond to this,challenge_are low,productiv_ity,_sta_gnant IiN ing
standards, an.d._reduced opportunity for its citizen-s.
Innovation and change mean uncertainty_and disruption But it is becoming
increa. in.gly_clear that dyna_mism._is.critical to._growth. t You_ca..n't have
upwardmob._lty if i..s on, the move..) Th.e.__more_churni_n.g in_a
community in terms._.of newbusiness start-ups_and existing business
s.
changes, the faster_th_e community's rate,of econom c_,arowth.,In fact, of all
of the indicators in thisreport, churn is the most strongly cor..related_with
employ_ment._a_nd income growth. This means that_com.m.munities nee...d to
promote.ch_an.ge and innovation, not retard it.
Strategic Plan for Economic Development Page 15 of 21
A New GoaLGeLProsperous ot
,RBigger
A.s c..o.lm...mu-.n.i.t.i..e.s.-..ac-hi.e-ve.l.l.ow....[..ev..e..I.s...of.unemploy.MQnt.in an era of fair.l.y stro_ng
.........
e.....c...o.....-n...o-m-I-c gr tt,....QcQ_n_..o_.m�.i...c,d.e.v..-.e.I.-..I.O_De.r,I.sI.,n� eed to think more Quality
0
than-cluantity;.moreaboutgetti ng.prosperous than simply getting,bigger
(e.a., more lobs and i)eor)le)..-Most.-.economies,-",both_big_ario,small, still see
gett[Rg-b-!-ggQr-as-,Ib.Q-.jpoi.n-.qoaI of economic development.
In the last 20 Years, the transitional period between the old and the new
gConom __!ggtt
ting_b4' mA-d-esome....sense.because economic grQwth_was slow
-. . ...................
and unemp[oyment. i KQw gv
-h:-gbL- -e r,_evgn_when local and regional economies
werewere weak,jobgrowth was at besta means to two.possible ends: raising the
_1 I...........- .....................
averagestandardof.Jivin.g in_the metropolitan area, or help.i.ng.reduce
poverty,by employingthpsgat thefringes of the labor.market. The first of
these two Qoals is now more effectively achieved by focusing income
-------------------dy_ _e Ising on 1111, 1-11
growth per.s,.eand not-job growth as a means,, particularly with the
unemploymentrate at arouncl...._5 percent.. The-second is.now largely a matter
of structural or social reform, such as jobtraining.,..K-12 improvement, and
...................................I -I�___111.11 I..............................I........... .............-.......-
solyina the problemof spatial isolation in low-income, inner-city
ncighborh-o-ods.-It_is diffic'u.1t to.....s. ele how programs aimed at undifferentiated,
igb-growth that are not focused onhigher wages or higher-skill jobs Can
provide.....m.o.re opportunities for,the poor than already exist,inmost metro
_e Co 0.o.m-le.5............u.-n- e.S.s_those area-.,.s, are r.e 1.o.s-in.-g lobs or ha e high unemployment.
. .
Unfortunat I _in Most places it is hard to__reverse.e the "go.forgrowth"
.....................................e.Y __ _ ........... s , -...I
politiCal im.g.g!zmAut...th..a..t.....r..e..m..a.i ns....Q.n autopilot...A powerful growth coalitio n.
.exi-sts i-n-mlo's-t metro,a,r,ea.,s,.(Q,g.,,,real estate developers, Chambers of
Commerce-nQw
5pape.rs and utilities, and economic,cle elopment
qptting4igger,_eve1n if the-new jQbs,-pay little
and_th e r Q with the pains of growth. Forexample,.....economic
..............egion....1s.coping, 11 1_ �_ � , I -
cleveloper.s......i.n. Uart.hern. .Virginia re
..........ssi,vely recruit new firms even
thoughtrafficCongestion,lis-the.worst in the nation, housing prices among the
highest.and-uDem-pjiay,ment-,ampng-,the lowest.,
Strategic Plan for Economic Development Page 16 of 21
As. a res....u..lt, the....new.. goal for economic deve lopment,...p..articularly in_fu.11y
developed are..as, should be to raise average per.capita..._incomes through
hi heg,_,_,_,r-wage obs,,while working to.reduce poverty a,nd expand opportunity
for economically disadvantaged residents, all the while boosting the,reg,ion's
quality_of life,__T..his_d_o..es not_mean.that communities should,oppose_growth.
and erect regulations limiting it; it does mean that most area..s sho..u...l..d_not
continue to pursue job creation for its own sake.,
Th...is is not to say that the strategyshould_remain fixe.d_. If, unlikely as itis,
productivitygrowth rates slow significantly in the next decade and
unemployment_increases, the appropriate_goals_and strategies might change,
But for-now,and_the foreseeable future, economic strategy should focus on
raising incom..e...s..rathe...r than simply attracting j.o...b..s..
Beliefs About Economic„Develop ment in,the Old and New Economies
f IIIU11��10111�111111111111111�IIIIIIIII�IIIlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllll
i Bei a_cheap_place to do business was the Being a place rich in ideas and talent is
key, the key,
Attracting,companies was the key. Attracting.educated people isa_.key,
A highquality physical_environment was Physical and cultural amenities are_kev in
luxury stood in the way_of attracting cost, attracting knowledge workers.
. conscious businesses.
Rections won because they held a fixed Regions,prosper.if organizations and
competitive advantage_ n_some_resource.or individuals have the ability to learn and.
skill. a..dapt.
Economic development was government- Only bold,partnerships among business,
led. gWovernment and norofit sector can
_ ...
bring_about„change.
A New Means: Get,Better, Not,Cheer
A.new,,,,goal requr,res new
means.,-In--the-qllcleconomy,,places,sought to get
big by.."getting cheap." In the New._Economy, the key tosuccess is to "get
_
b..etter."._Policy..makers use..d.__to believe th..at a iow-cost_.environment._was the
Strategic Plan for Economic Development Page 17 of 21
•
key. to s..u.....ccess.._and that making investme.n_..ts to create_a_high-.quality_physical
environmentiust,ra sed costs and drove away business. That's why
communities focused on physical infrastructure below market-rate financing
and tax,holiday_s for big industrial and commercial projects, and marketing
and incentives..._to attract ind_ustry..._.The result was_ofteniow-wage jobs and
companies th.a.t_were._Just as.._likely.._to.leave. after_a decade for even cheaper
pastures..
I.n___the New E.conom.y,_the path to raising._wages._and q.u...ality.o..flife is_in.
ensuring..a._technot icatly .a.dyance.d infra.structu.re,.b. ...o..sting....the skills of the
region's_workforce, creating fast and responsiv_e.government,._ensuring a high
quality-of life - includir9_a high-q_u_a_lity,physic aIenvironment that is attractive
to_.knowl.edge.._workers .and.._develo.ping a responsive, efficient_government.
This is not to say that_fiscal_dlscipli.n...e should not..be a cornerstone of
government n__the New Econ-P.M.Y.-But a low-cost_environme...n.t with._a._poo.r
quality-of life is not-the ticket to success.
In the New Econom communities need to shift their focus from
providing tax breaks and other subsidies to i
_Lnvesti
:ftgfin the skills,of
the workforce a vibrant infrastructure for technological innovation,
and a superb
ualit of life.
R..a...ther t.h_.an simply t..ry...ing to.._cut costs or react to_each new economic
gyration,_communities_shout_d. instead invest in the foundation areas for
gro_wth__in the New Econom-y._A progressive, innovation-oriented metropolitan
area policframework_for the New_Economy should rest on five
cornerstones:
1. Building_a_n Orga_rnzation That Can_Support_Economic Developments Formatted:Bullets and Numbering
- m _ Nu
2.__,_Creating a,Community._that Fosters Investment
--g.14 Existing._Business Base
4__.._Attracting_._New,..l nvestment
5_......Creatinn__a.Sirong_Workforce
Strategic Plan for Economic Development Page 18 of 21
A endix B: DeSCo's Philosophy of jtr ee is Planning
D.e.SCo's_philo.sophy on,.stra..teq.ic p.l..anning_for econom.ic..development
mandates that every_member of the community be afforded_the opportunity
to provide input and insight_into the pian. We realize that not everyone will
have an.._opin.io.n. nor_w.ish to._express it; however we find it importa_n..t.that
every citizen in.._the community beafforded an opportunity to speak.
In.._economic development, there a_re four layers of input solicited in_the
development of the strategc_plan,__ They_are:
tLeadership.. We_define._two key_components_to comprisethe Formatted Bullets and Numbering
...... ........
leademhip in the community;,the elected officials_on_the__City
Council and the members of the EDC who are driving economic
deveiopmentefforts.
�.._....
"Powe.r Bas.e._.. In any community, there are people Oh.Q. hold power Formatted Bullets and Numbering
and influence. _The goal_of an economic development strategy is to
flnd__out what these individuals are thinking. The power can be
o E_lected_power_afforde..d to t.h.ose in office..
ppornte...d pow....e...r commonly.received from_elected officials.
o Wealth achieved from success in business.
o ,Knowied�e from achieving expert status at something..
oPositional_Dower,from_holding a position of responsibility.
We._request_the input fro..m those whohold the pow...er or n..fluenc..e.....in
the community as we start our work in the community.
•_ Strategic Partners._These are individuals or_organizations who Formatted:Bullets and Numbering
work closely with_City Hall and the EDC. They often involve
Planning Commission and..otherCity Committee members.....t.h..e
Chamber of Commerce, health care officials and others with similar
interests.
_
t._.....
Citizen Tax..._Paver..s_.._ These are foundation upon..wh_ich everyth.ing.._.in` Formatted:Bullets and Numbering
We b.e...g.in our_engagement_.w...ith one-on-one interviews...with the leadership
and power base in the_community..._ Our questions to these individuals are
purposely_o_pen ended, allowing DeSCo staff to collect the information
Strategic Plan for Economic Development Page 19 of 21
0
n.ecessa..,,,,-,,,about. .what...issues.._are.._fa..faced in.._the community when it comes to
economic development We do not lead, we listen,
The answers to these questions are formed into a survey that is circulated_at
fir_s...t_to the strategic.p..a..rtners._and_then ultimately.to th.e_city as a whole. We
.contact both by directing their,attention to the City's web page where the
.ec...onom c...development surve_.y is h.o..sted... .._This.w..orks to establish the
comm„unity as the_.lead_er,in.economic development as opposed to the
consultant. .By sequentialiy_distributing_the survey in_this manner we are
able to stratify the o ip nions of the community_and,show_any_s.eparation_in
opinion between.those.._"in the know" an..d...._the rest of the community at_la_rge_..
Citizen involvement in_economic development strategy_formation is essential
for sup op rt and_implementation_of the plan. Elected officials, economic
development staff_and citizens all PIaYimoortant_roles_ingoverning._
community. Therefore.,._DeS.Co commits to_.promote
and to sustain_a
responsive citizen_involvement env_.i_ronment With the.._opportunity to_provide
input co._.mesbuy. in With buy-in comes su.pport._and with support comes the
ab„i_lityofthe E_D.0 and__the community to_i,mplem...ent an_effective economic
development strateq
Strategic Plan for Economic Development Page 20 of 21
Strategic Plan for Economic Development Page 21 of 21
Page 5.[11 Deleted Stanley Harpstead 4/24/2007 10:54 AM
Economic Development Strategies in a New Economy
Times have changed, and with them so has the underlying economic
structure in which we all live. This new economy requires smart
thinking by our leadership facilitated by new ways of solving problems
and collaborations with sometimes unexpected partners. In the new
economy, the ticket to faster and broader income growth is innovation.
This economy puts a premium on what the Nobel laureate in
economics Douglas North calls "adaptive efficiency," which refers to
the ability of institutions to innovate, continuously learn, and
productively change. As markets fragment, technology accelerates,
and competition comes from unexpected places, learning, creativity,
and adaptation have become the principal sources of competitive
advantage in many industries. Enabling constant innovation needs to
become the goal of all organizations committed to prospering.
Similarly, the goal for metropolitan areas must be to foster innovation
and adaptation - in infrastructure, in institutions both public and
private, and on the part of individuals.
These efforts need to be proactive and designed for the long term.
Government, civic, and business leaders need to challenge all
economic sectors and institutions, including their own institutions of
government, to become cultures of innovation. The consequences for
any community that does not respond to this challenge are low
productivity, stagnant living standards, and reduced opportunity for its
citizens.
Innovation and change mean uncertainty and disruption. But it is
becoming increasingly clear that dynamism is critical to growth. (You
can't have upward mobility if no one is on the move.) The more
churning in a community in terms of new business start-ups and
existing business changes, the faster the community's rate of
economic growth. In fact, of all of the indicators in this report, churn is
the most strongly correlated with employment and income growth.
This means that communities need to promote change and innovation,
not retard it.
A New Goal: Get Prosperous, Not Bigger
As communities achieve low levels of unemployment in an era of fairly
strong economic growth, economic developers need to think more
about quality than quantity; more about getting prosperous than
simply getting bigger (e.g., more jobs and people). Most economies,
both big and small, still see getting bigger as the main goal of
economic development.
In the last 20 years, the transitional period between the old and the
new economy, "getting big" made some sense because economic
growth was slow and unemployment high. However, even when local
and regional economies were weak, job growth was at best a means to
two possible ends: raising the average standard of living in the
metropolitan area, or helping reduce poverty by employing those at
the fringes of the labor market. The first of these two goals is now
more effectively achieved by focusing on income growth per se and
not job growth as a means, particularly with the unemployment rate at
around 5 percent. The second is now largely a matter of structural or
social reform, such as job training, K-12 improvement, and solving the
problem of spatial isolation in low-income, inner-city neighborhoods. It
is difficult to see how programs aimed at undifferentiated job growth
that are not focused on higher wages or higher-skill jobs can provide
more opportunities for the poor than already exist in most metro
economies, unless those areas are losing jobs or have high
unemployment.
Unfortunately, in most places it is hard to reverse the "go for growth"
political juggernaut that remains on autopilot. A powerful growth
coalition exists in most metro areas (e.g., real estate developers,
Chambers of Commerce, newspapers and utilities, and economic
development professionals) that advocates getting bigger, even if the
new jobs pay little and the region is coping with the pains of growth.
For example, economic developers in Northern Virginia still
aggressively recruit new firms, even though traffic congestion is the
worst in the nation, housing prices among the highest, and
unemployment among the lowest.
As a result, the new goal for economic development, particularly in
fully developed areas, should be to raise average per capita incomes
through higher-wage jobs, while working to reduce poverty and
expand opportunity for economically disadvantaged residents, all the
while boosting the region's quality of life. This does not mean that
communities should oppose growth and erect regulations limiting it; it
does mean that most areas should not continue to pursue job creation
for its own sake.
This is not to say that the strategy should remain fixed. If, unlikely as
it is, productivity growth rates slow significantly in the next decade
and unemployment increases, the appropriate goals and strategies
might change. But for now and the foreseeable future, economic
strategy should focus on raising incomes rather than simply attracting
jobs.
Beliefs About Economic Development in the Old and New Economies •
In the new economy, people believe
In the old economy, people believed that:
Being a cheap place to do business was the Being a place rich in ideas and talent is the
key. key.
Attracting companies was the key. Attracting educated people is a key.
A high-quality physical environment was a Physical and cultural amenities are key in
luxury stood in the way of attracting cost- attracting knowledge workers.
conscious businesses.
Regions won because they held a fixed Regions prosper if organizations and
competitive advantage in some resource or individuals have the ability to learn and
skill. adapt.
Economic development was government- Only bold partnerships among business,
led. government, and nonprofit sector can
bring about change.
• A New Means: Get Better,Not Cheaper
A new goal requires new means. In the old economy, places sought to
get big by "getting cheap." In the New Economy, the key to success is
to "get better." Policy makers used to believe that a low-cost
environment was the key to success and that making investments to
create a high-quality physical environment just raised costs and drove
away business. That's why communities focused on physical
infrastructure, below market-rate financing and tax holidays for big
industrial and commercial projects, and marketing and incentives to
attract industry. The result was often low-wage jobs and companies
that were just as likely to leave after a decade for even cheaper
pastures.
In the New Economy, the path to raising wages and quality of life is in
ensuring a technologically advanced infrastructure, boosting the skills
of the region's workforce, creating fast and responsive government, •
ensuring a high quality of life including a high-quality physical
environment that is attractive to knowledge workers - and developing
a responsive, efficient government. This is not to say that fiscal
discipline should not be a cornerstone of government in the New
Economy. But a low-cost environment with a poor quality of life is not
the ticket to success.
In the New Economy, communities need to shift their focus
from providing tax breaks and other subsidies to investing in
the skills of the workforce, a vibrant infrastructure for
technological innovation, and a superb quality of life.
Rather than simply trying to cut costs or react to each new economic
gyration, communities should instead invest in the foundation areas
for growth in the New Economy. A progressive, innovation-oriented
metropolitan area policy framework for the New Economy should rest
on five cornerstones: •
Building an Organization That Can Support Economic Development
Creating a Community that Fosters Investment
Retaining The Existing Business Base
Attracting New Investment
Creating a Strong Workforce
DeSCo's Philosophy of Strategic Planning
DeSCo's philosophy on strategic planning for economic development
mandates that every member of the community be afforded the
opportunity to provide input and insight into the plan. We realize that
not everyone will have an opinion nor wish to express it; however we
find it important that every citizen in the community be afforded an
opportunity to speak.
In economic development, there are four layers of input solicited in the
development of the strategic plan. They are:
Leadership. We define two key components to comprise the
leadership in the community; the elected officials on the City Council
and the members of the EDC who are driving economic development
efforts.
Power Base. In any community, there are people who hold power and
influence. The goal of an economic development strategy is to find
out what these individuals are thinking. The power can be:
Elected power afforded to those in office.
Appointed power commonly received from elected officials.
Wealth achieved from success in business.
Knowledge from achieving expert status at something.
Positional power from holding a position of responsibility.
We request the input from those who hold the power or
influence in the community as we start our work in the
community.
Strategic Partners. These are individuals or organizations who work
closely with City Hall and the EDC. They often involve Planning
Commission and other City Committee members, the Chamber of
Commerce, health care officials and others with similar interests.
Citizen Tax Payers. These are foundation upon which everything in
the community.
We begin our engagement with one-on-one interviews with the
leadership and power base in the community. Our questions to these
individuals are purposely open ended, allowing DeSCo staff to collect
the information necessary about what issues are faced in the
community when it comes to economic development. We do not lead,
we listen.
i
The answers to these questions are formed into a survey that is •
circulated at first to the strategic partners and then ultimately to the
city as a whole. We contact both by directing their attention to the
City's web page where the economic development survey is hosted.
This works to establish the community as the leader in economic
development as opposed to the consultant. By sequentially
distributing the survey in this manner we are able to stratify the
opinions of the community and show any separation in opinion
between those '"in the know" and the rest of the community at large.
Citizen involvement in economic development strategy formation is
essential for support and implementation of the plan. Elected officials,
economic development staff and citizens all play important roles in
governing the community. Therefore, DeSCo commits to promote and
to sustain a responsive citizen involvement environment. With the .
opportunity to provide input comes buy-in. With buy-in comes support
and with support comes the ability of the EDC and the community to
implement an effective economic development strategy.
Page Break
Page 5:[2]Deleted Stanley Harpstead 4/24/2007 11:07 AM
DeSCo went to work in Arden Hills to develop a strategy for economic
development success
... ___ __ __ _...._
Page 14:[3]Deleted Stanley Harpstead 4/24/2007 11:23 AM
Recently, however, skepticism about planning has been on the rise.
Political and economic uncertainty is the norm and the pace of
technological and social change has accelerated. There is some
disillusionment with planning efforts that can't keep pace. "We did a
plan five years ago and haven't looked at it since," is one common
•
• complaint. Or, "By the time we completed our plan, we were already
carrying out all of its strategies."
However such comments miss the point. Rather than expose some
fatal flaw in strategic planning, they reflect a basic misconception
about the purpose and value of strategic planning and what it takes for
a plan and the process to succeed. Indeed, the process can prove
pointless and frustrating and the end product of dubious value when
care isn't taken to set clear, realistic goals, define action steps
explicitly and elicit the views of major stakeholder groups.
Yet few tools are better suited to help address the staggering array of
challenges brought about by a changing environment.
..._..._ .............................._-- ........ ..................
Page 14:[4]Deleted Stanley Harpstead 4/24/2007 11:23 AM
We wish you success with your implementation of this plan.
DeSCo
August, 2006
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0 ,-AEN HILLS
May 16, 2007
Mr. Edmund Von Holtum
1409 Indian Oaks Drive
Arden Hills, MN 55112
Dear Mr. Von Holtum:
On May 14th, the Arden Hills City Council officially appointed you as a member of the
Economic Development Commission.
Thank you for volunteering to participate on the Economic Development Commission
(EDC). We are looking forward to working with you in the future and hope that your time
• on the EDC is personally gratifying and rewarding.
On behalf of the City Council, City staff, and the Arden Hills community, I would like to
express a sincere thanks to you for your willingness to devote your time, knowledge,
energy, and experience to serve on this committee.
Once again, thank you for volunteering to serve the citizens of Arden Hills. The next
Economic Development Commission meeting will be on Wednesday, May 23rd at the
Arden Hills City Hall. The meeting will begin at 7:30 AM.
If you have any questions or concerns regarding the Economic Development
Commission please feel free to contact me at 651.792.7817 or e-mail at
Karen.barton@ci.arden-hills.mn.us.
inc ely,
Kn Barto
City of Arde Hill
Communit ev me or
•
City of Arden Hills • 1245 West Highway 96 • Arden Hills,MN • 55112-5743'
Phone 651.634.5120 • Fax 651.634.5137 • www.ci.arden-hills.mn.us