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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 tz 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 VtA-� 'z -� ram 1 • 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 -- - . { 44 i �r i ff� ! M - -._ 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 O O O O O O I Q O 0 0 0 0 0 CE O O O O O O m 0 0 0 0 0 0 O d 6 6 6 0 0 0 0 0 0 0 0 0 O 6900000Off� 64000 O i 1.[') 0000 O 000 to d1 O 1n M 00 O to 117 1I) (0 N T 69 00 to N r r Ef3 f- c- E9 E9 69 69 EF? EA M 69 U)- O H 0 0 0 0 0 0 0 O 0 0 o O 0 0 0 0 0 0 0 O O O O O N 0 0 0 0 0 0 0 O O O O O 69000000 O 000 O O (000000 O tn00 r N N CO CO O r- 11) N U) N O M 69 69 00 6) EA Ef? 64 EA to fA ul 69 �- 69 0 0 0 0 O O O O O O O C) Co 0 0 O O Cl O O O O O O O O O O O O O O O C X000 00 O 1000 'V' N O M O to N U6 NO M (a 69 6% 69 (0 EA EA Li O O O O O O O O O O O 0 0 0 0 O O O O O O O �.+ 00C) 00 O 000 O O C=) 0 C C C O tOf� O O c � O d 'Zf N 0) M O to N to N 00 69) ,91 9 (A � 69 69 69 � 'm m m cc O O O O O O O O O CD E CA to to O O O O O O U') +.+ (0 O O O O to O CD • W N N 03 69 to 69 69 EA N C V o00 00 0 0 0 0 co o0 0 0 0 0 0 0 N N ER - 69 W (f3 to 1N 69 69 (f3 Li Li Li Li co o E a o Q- o w E ~ O �I o E ° a w CL m LL NU) L O L N r C to L O w N r O O C N 1n = N L E N Ncy V O E i fn CL N 0 > N N 3 O C O N 10 +. C fn C u) L 1n m C cn a) O N N Q N C .� C N Q C C L L N O NE cm co to O N D O N 0) :3 4 • C Ycl U V O m co u1 U D C � � �_ N N — N tB C 1n N 7 C/) pE c 'm 'tn w 0 ° m iu > ° oEMS § � ° ° a� oc _ c° v) w Uw0UOf0 0com � � w ° � � � It' 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