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HomeMy WebLinkAbout09-20-06 'It EN HILLS ECONOMIC DEVELOPMENT COMMISSION WEDNESDAY, September 20, 2006 7:30 a.m. Upstairs Conference Room, Arden Hills City Hall I. CALL MEETING TO ORDER II. ROLL CALL III. APPROVAL OF MINUTES A. August 23, 2006 meeting IV. REVIEW FINAL DRAFT ECONOMIC DEVELOPMENT STRATEGY — Chair, Bruce • Kunkel V. BUSINESS OUTREACH AND RETENTION NEXT STEPS — Chair Bruce Kunkel, Karen Barton A. Schedule Breakfast/Lunch meetings B. List of invitees C. Agenda for breakfast/lunch meetings VI. RENAMING OF TCAAP—Karen Barton VI. ADJOURN AND SET NEXT MEETING DATE • City of Arden Hills 1245 West Highway 96-Arden Hills Minnesota 55112 Phone 651.634.5120•Fax 651.634.5137 www.ei.arden-hills.n-m.us `rte. W off' • a��J sip _ __ ) � �r✓1 �� J -DO'5:�v -Fs j::7-j vv�l!�M TI sr o� � .......... r� w C in wpg" ,"�%! e 12 �,� 7. �nAM� �F-vn.a--i—s @ 6eoy � Nov q ��p✓ . at,,,d_ ohs' � v�U � t� dirm C(k� F^-� cf) e. baaw A"t - I 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 Arden Hills. 2. Enhance natural resource conservation and management. 3. Build local capacity for economic development in Arden Hills. 4. Improve the economic security of Arden Hills families. 5. Prepare Arden Hills youth to be productive, positive, and equipped with life skills for the future. To pursue these priorities, the agency will follow a strategic plan through 2011 comprised of the 29 goals and objectives presented herein. In addition, this strategic plan addresses organizational excellence —the alignment of every facet of the Arden Hills Economic Development Commission to support effective economic development delivery and execution in the City. The 29 goals identified in this plan are organized around five cornerstones for economic development: Building an Organization That Can Support Economic Development Creating a Community that Fosters Investment Retaining Our Existing Business Attracting Investment Creating a Strong Workforce Approvals and Adoptions This plan was adopted by the Arden Hills Economic Development Commission at their regular meeting on August 16, 2006, Bruce Ku Kk!.�presiding: Moved for adoption by: Seconded by: Votes in Favor: Votes Against: Strategic Pian for Economic Development Page 1 of 23 Draft—Subject to Approval and Adoption Ol The plan was then forwarded to the Arden Hills City Council for review and approval. This plan was approved by the Arden Hills City Council at their regular meeting on August 21, 2006, Mayor Beverly Aplikowski presiding: Moved for approval by: Seconded by: Votes in Favor: Votes Against: Acknowledgements This Economic Development Strategic Plan is the result of the concerted effort of the Economic Development Commission led by Bruce Kunkle. 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 This document was produced by funds appropriated by the City Council. For this and all their support we are especially grateful. While the planning and preparation of this report was a coordinated effort in every sense, the following key staff members were responsible for individual components of the document: Karen Barton, Community Development Director Special thanks are also extended to the following individuals and groups which actively contributed to this process: attendees at all the one on one interviews and phone calls, strategic partners to the City and members of the community at large who provided input via the survey process. Strategic Plan for Economic Development Page 2 of 23 Draft—Subject to Approval and Adoption 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 of those who have the influence and power to create a climate conducive to economic growth. Those who chose to shape their future; can. Those who chose to avoid their future often find it shaped by forces outside of their control. Change is bound to happen. The choice to be made is whether the change will be shaped by the community or by forces beyond its control. A strong economy provides benefits to all who experience it while a weak economy puts businesses and residents at risk to the economic effects of external forces. Economic development strategies are developed by communities who chose to shape their own future. S In areas with strong economies, local governments do not struggle to fund 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. Strategic Plan for Economic Development Page 3 of 23 9 P Draft—Subject to Approval and Adoption 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 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 on 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 premise, therefore, of this economic development strategy for Arden Hills is that an active participation in fostering the economic strength of the local economy is an essential action by the local unit of government and a responsible action thereof. Strategic Plan for Economic Development Page 4 of 23 p 9 Draft—Subject to Approval and Adoption Economic Development Strategies in a New Economy Times have changed, and with them so has the underlyin on c structure in which we all live. This new economy require=' ith inking by our leadership, new ways of solving problems and coll 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 GKe S community in terms of new business start-ups and existing business#�tarzs'; 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. Strategic Plan for Economic Development Page 5 of 23 Draft—Subject to Approval and Adoption 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 4.2 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 Strategic Plan for Economic Development Page 6 of 23 Draft—Subject to Approval and Adoption 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 new economy, people Being 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 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 1 bring about change. Strategic Plan for Economic Development Page 7 of 23 Draft—Subject to Approval and Adoption 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: Strategic Plan for Economic Development Page 8 of 23 P g Draft—Subject to Approval and Adoption 1) Creating an organization that will foster economic development. 2) Preparing a product worthy of investment 3) Managing existing business relationships 4) Attracting Quality Investment 5) Fostering a Productive Workforce DeSCo's Philosophy of Strategic Planning DeSCo's philosophy on economic development strategic planning 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: o Elected power afforded to those in office. o Appointed power commonly received from elected officials. o Wealth achieved from success in business. o Knowledge from achieving expert status at something. o Positional power from holding a position of responsibility. We request the input from those who hold the power of influence in the community as we start our work in the community. • Strategic Partners. These are individuals or organizations o work closely with City Hall and the EDC. They often invo a Planrli Commission members, the Chamber of Commerce, health car officials and others with similar interests. Citizen Tax Payers. These are foundation upon which everything in the community. Strategic Plan for Economic Development Page 9 of 23 Draft—Subject to Approval and Adoption 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 being 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 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 is hosted. This works to establish the community as the leader 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. Strategic Plan for Economic Development Page 10 of 23 Draft—Subject to Approval and Adoption Economic Development Plan for Arden Hills Finding itself at a crossroad for growth, the City of Arden Hills engaged the services of DeSCo in the summer of 2006 to create a strategic plan for the City. This plan of action was to be developed not from a point of isolation but from an interactive process involving substantial community input. Using our proprietary methodology developed through creating strategic plans for communities throughout the United States, DeSCo went to work in Arden Hills to develop a strategy for economic development success. The final stage of our engagement resulted in the development of this strategic plan. The plan is segmented to address the five cornerstones of economic development: • The Organization • The Product • Business Retention & Expansion • Marketing the Product (Attraction) • Workforce Development Every economic development organization is pressed with deciding how many of these five cornerstones their budget and staffing will allow them to address. Once they determine which cornerstones they can approach they are then faced with determining the relative emphasis to be placed on each cornerstone. In the formulative stages of the organization, much more work is required in the first three cornerstones; Organization, Product and Business Retention & Expansion. More mature programs are able to shift their resources 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 BRE. Strategic Plan for Economic Development Page 11 of 23 Draft—Subject to Approval and Adoption • It is the recommendation of DeSCo that funding and staffing is secured for full implementation of this plan. Assuming this to be an achievable objective, we have written a five year economic development strategy that addresses all five of the cornerstones. This program is heavily weighted toward the first three; organization, product and business retention and expansion. It is the consultant's recommendation that these are the best investments of the City's economic development funds at this time. Project phasing into three sections; Early, Middle, Late. In a three year strategy such as this early implementation is recommended for less than two years from plan adoption; middle is for year's two to four and late is years four through five. Organizational Development Economic development cannot occur without the staff and organizational support necessary to make it happen. It is, without question, the point where all ED must start. Arden Hills is not exempt from their need to address this area either. The first component essential to a successful economic development program is to ensure that the organizational capabilities are in place for ED to succeed. In order to accomplish that success, we recommend that Arden Hills address the following organizational issues: Early: Years 1-2 1) Economic and Community Development Director. For economic development to succeed there needs to be someone in the community with the title for such responsibilities. Currently, there is no one on City staff with the title of economic development director. In order to begin the process of addressing this critical issue an economic development director needs to be put in place. Full time economic development staff is not warranted at this time. However, a minimum of part time attention to economic development is warranted for consideration. Our first recommendation is that the awareness of this priority be recognized through title changes. We would recommend that the Strategic Plan for Economic Development Page 12 of 23 Draft—Subject to Approval and Adoption title of the Community Development Director be changed to Economic and • Community Development Director as soon as possible. 2) Support Staff for Economic Development The new Economic and Community Development Director cannot assume the additional responsibilities of their job without sufficient staff to manage that task. If the City adopts the 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. An individual needs to be put in place to assume the support responsibilities for this priority. 3) Council Development Arden Hills is at a new crossroads in economic development. In order for the City Council to support the efforts of its staff, there needs to be a higher level of expertise of economic development issues amongst the elected officials. 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 held at City Hall with the public invited to be in attendance. Topics for discussion may include: ♦ Incentive Utilization for Competitive Economic Development ♦ Brownfield Redevelopment ♦ Economic Development Finance ♦ Redevelopment of Existing Properties ♦ Main Street Revitalization ♦ The Link Between Education, Workforce and Economic Development Leadership in economic development. Why everyone is a leader in Arden Hills. Middle: Years 2-4 �'✓G S 4) Strengthening of City UaaaoCs Position Economic development in Arden Hills will succeed when city staff turnover is reduced to levels representative of the industry. In order to accomplish that task, the City Manger must be commissioned with the responsibility of the administrative responsibilities of the city while the City Council bears the responsibility for policy and legislative roles. We would recommend that a consultant be employed to recommend the most effective roles and responsibilities for the City Manager and Council in managing the city. 5) Community Awareness Strategic Plan for Economic Development Page 13 of 23 Draft—Subject to Approval and Adoption The third leg of the economic development is the community itself. If the citizens understand the vision for economic development they will be much more capable of supporting an economic development mission. Toward that end, they need to be perceived as part of the overall economic development effort. Incorporating citizen support for economic development will require that they be informed of the economic development focus of Arden Hills. This will be accomplished by amending the Mayor's already well received newsletter to include a section on economic development. In addition, this newsletter will be appended to the City's soon to be revamped web page for download. Late. Years 4/5 6) Redevelopment Director 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 if the TCAAP project were to never materialize, the need to be more actively involved in the redevelopment of Arden Hills presents itself today. This individual would be strongly skilled in the ability to take existing properties and convert them to new investment and job creation opportunities. Product The next 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: Early. Years 1-2 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. Strategic Plan for Economic Development Page 14 of 23 p Draft—Subject to Approval and Adoption 8) Way Finding Signage 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. 9) Capital Improvement Planning One of the most challenging, yet unglamorous roles that community leadership must address is creating an operating and maintenance program for its many assets. To the average citizen these assets seem like permanent infrastructure that will be there forever. To anyone who has served in the public arena the knowledge that these assets are in a continual state of decay is well known. Improvement plans and budgets need to be put in place so that this process is an annual appropriation of funds. The electorate is most focused on those items that are above ground, i.e. streets, sidewalks (trails)and parks. Prudent fiscal planning will also address those items below grade; sewers, water and utility infrastructure. Middle: Years 2-4 10) Central Business District. • 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 soon achieved and 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 more 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 CR E has been "abandoned" by the construction of the new City Hall along CR G/96th Street as city halls are traditionally located in the City Strategic Plan for Economic Development Page 15 of 23 Draft—Subject to Approval and Adoption Center. Citizens in Arden Hills question where the 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. 11)Trails & Recreation Program Arden Hills is challenged by the presence of major segregating assets which are 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. DeSCo recommends that this become a major initiative for the community through the development of a Recreation Master Plan. This plan would link the trail system into a unified network of pedestrian transportation throughout the community. • Late: Years 4—5 12) Development Sites. As a land locked community, Arden Hills is rapidly running out of developable sites for consideration. This places 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, the need to look at the community from a higher level and to take larger tracks of land that are under or non-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. 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 Strategic Plan for Economic Development Page 16 of 23 Draft—Subject to Approval and Adoption 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. Early: Years ? —2 13) Business Retention Program. It has been consistently proven that a business retention program focused on the base (those businesses that bring money into the county) 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 w y o visits per year can be conducted in - the community. 14)Sign Committee. 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 ordinance 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. 15) 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. 16) Mayors Council on Existing Business Services. We would recommend a council on existing business services that would serve as counsel to the Mayor. This would be an advisory panel of business representatives large and small who would meet with the Mayor and the Economic Development Director to address business/government issues in the community. Initial agenda items may come from city hall, however longer term Strategic Plan for Economic Development Page 17 of 23 9 p Draft—Subject to Approval and Adoption success of this group will occur when the members take ownership of the agenda and propose things for consideration. Middle: Years 2—4 17) Resource Database. City Hall can position itself as more supportive of business if it creates a resource directory of business support services available from the governmental as well as private sectors. This can be as simple as a 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. rn I 18) Business & Education I itative Arden Hills is blessed with two key assets; a strong business base of signature companies and a school system that ranks as one of the best in the state. In order to maintain and enhance both entities strengthening the link between the two is essential. Increasing business participation in the schools is valuable for nv. showing Arden Hills' students what a business career will be like when they Y( graduate. Having business leaders, and most especially business owners, speak at career fairs goes a long way toward strengthening the tie between the two. A ready made program that makes this process as much fun as it is easy is provided through Junior Achievement. JA's ready made instructional packets work extremely well with tapping the expertise of business leaders in an educational setting for students of all ages. 19) Business Matters. A section of the Mayor's monthly newsletter should be directed toward business issues in the community. We would title the column "Business Matter." The double entendre aspect of the title is purposely selected. With topics ghost written by economic development staff, the Mayor can focus on issues relating to the business community in her newsletter each month. 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 Strategic Plan for Economic Development Page 18 of 23 9 p 9 Draft—Subject to Approval and Adoption 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. Early: Years 1-2 20) 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 readily highlighted on the City's new business section of the web page. 21) 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 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. A more aggressive approach is to hold "Arden Hills Day"and to have these people into your community for a four hour tour and luncheon that would be catered at City Hall. The goal here is to make sure that product knowledge and personal relationships are as strong as can be in order to have those people who influence investment decisions consider Arden Hills when opportunities arise in the future. 22) Incentive Policy. The community would be well served to draft an incentive policy guiding the productive use of incentives in Arden Hills. This should be conducted by the EDC in partnership with an outside consultant. As this document is completed it is then presented to council for approval and handed back to the EDC for implementation. Although it is a document in writing, it is critically important that the EDC and City Council understand that the incentive policy is a fluid document open for interpretation on a project by project basis. Strategic Plan for Economic Development Page 19 of 23 Draft—Subject to Approval and Adoption Middle: Years: 2—4 23) Decision Influencers. Site selection consultants deal with the larger, more sophisticated projects that are decided upon each year. Marketing dollars could be well spent on approaching these individuals, sharing with them the benefits of an Arden Hills site selection and working with them in the future as projects materialize. Consultant approaches in the Minneapolis/St. Paul market would be the most affordable to approach followed by those in the Chicago market areas. 24) 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. Late: Years 4 - 5 25) Individual Marketing. 10P 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. Workforce Development f e ills has one of the most highly skilled, highly educated workforces in the State of nnesota. This strength is a blessing that needs to be protected as much as possible. Promoting the excellent school system as a community asset is essential to long term success in economic development. For the rank and file workers, much of the City's success in Workforce Development will result in partnering with The Ramsey County Workforce Investment Board (RCWIB) in this area. RCWIB is networked into a statewide system of education and training that prepares people for high-skill jobs and assures employers of a skilled flexible workforce in the future_ This comprehensive program is designed to improve the productivity level of the workers and allow companies to grow in the future. We recommend that this 40 Strategic Plan for Economic Development Page 20 of 23 Draft—Subject to Approval and Adoption support for education continue in its current form and extend through the full five years of this strategic plan. 26) Education. The quality of the local school system and the work ethic/- instills in the students may be the most valuable asset in the overall economic development resource base. Promoting, protecting and enhancing the school/business relationship are an essential component to maximizing the role that education plays in economic development. In the BRE section of the plan, we discussed ways that the business community can become more actively involved in the local school program. 27) Foster Workforce Training Initiatives. Through the BRE effort, help to bring new training opportunities to the attention of key partners such as RCWIB. There are funds and programs available through the RCWIB that can brokered as solutions for local employers in the community. These resources can help cut the cost of workforce development significantly for qualified activities. 28) Data Collection. Some workforce information is readily available but a great deal of it is not. The ability of the City to collect this less accessible information and to make it available to the employers is directly proportional to their success with retaining and attracting companies. The most valuable information is wage and salary data broken out by job classification. The goal is to collect and disseminate valuable labor information not readably attainable in other areas in order to set the community apart from its neighbors. 29) Certified Worker Program. In order to increase the value of the workforce in the community, a certified worker program that promotes a qualified worker should be considered. However, since the school system is not exclusive to Arden Hills, this program will have limited value in differentiating Arden Hills from its competing neighbors. We would recommend that it be pursued however as many of the competitive situations will involve Arden Hills competing against communities outside of the Metropolitan area. Strategic Plan for Economic Development Page 21 of 23 Draft—Subject to Approval and Adoption i Summary Thoughts A successful plan is, by definition, a usable plan — one that informs the City's activities as well as its long-range view, and that yields meaningful improvements in effectiveness, capacity and relevance. More than a few strategic planning efforts have run aground because they were based on a fundamental misunderstanding of what a strategic plan is. Sometimes strategic planning is confused with other planning modalities, 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 that provides guidance in fulfilling a mission with maximum efficiency and impact. If it is to be effective and useful, it should articulate specific goals and describe the action steps and resources needed to accomplish them. As a rule, most strategic plans should be reviewed and revamped every three to five years. This plan is no exception. Strategic planning has long been used as a tool for transforming and revitalizing economic development organizations. In its own right, this plan's primary goal is to energize the Arden Hills EDC and to chart a course of action for the organization. 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 Strategic Plan for Economic Development Page 22 of 23 Draft–Subject to Approval and Adoption 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. This strategic plan for Arden Hills has addressed the needs of the community in economic development while taking great strides to ensure that the common pitfalls for plan failure have been averted. All that lies next is to implement the plan in a logical, sequential manner. In so doing, Arden Hills will move its economic development efforts, and with it the community as a whole, to a new standard of performance that parallels that of the most successful of communities. We wish you success with your implementation of this plan. VaCo- August, 2006 Strategic Plan for Economic Development Page 23 of 23 • Draft—Subject to Approval and Adoption Karen Barton FF : James_C_Paulet@bluecrossmn.com Tuesday, September 19, 2006 1:15 PM To: Karen Barton Cc: bkunkel@bethei.edu Subject: RE: Arden Hills EDC Agenda 9-20-06 Karen, Below are my thoughts (hopefully not too disjointed) about the strategic plan: 1) Throughout the report Desco makes statements and promotes theories that could be interpreted by the reader as Desco's. The report should use footnotes whenever possible to give it validity. Otherwise the council as we know it may dismiss the report as the ramblings of a rogue consultant, and get away with it. 2) Page 5, last paragraph - as we discussed at our last meeting, replace "failure" with something more positive. 3) Page 7, last paragraph - what if market forces shift, what is an alternate strategy to "raising incomes" that is better than "simply attracting jobs". We should be prepared with a "Plan B" to maintain a strong "local" economy and avoid reverting to reactive mode (supports page 8 - "creating fast and responsive government"). 4) Page 10, last paragraph - our first attempt at citizen involvement did not produce the results we wanted. We may want to explore new strategies tlp us with connecting and engaging with residents. After watching a r nt council meeting it appeared to me that some of our council members are representing segments of the community that are out of touch with the real world. They lack basic information with which to make informed decisions. 5) Page 15, #9 - Put in bold letters for council. They have to support this! 6) Pages 11 - 21 - as already discussed, calculating the cost of all of these initiatives and the impact on operating budgets over time. I'm sorry I can't be there tomorrow. 1 think this is a great strategy. feel very energized by it. We need to find a way to sell it to the entire community. Jim Paulet Manager, Facilities Operations BlueCross BlueShield of Minnesota 651.662.7950 Direct 651.662.7627 Fax "Karen Barton" <karen.barton@ci.arden-hills.mn.us> V/2006 10:19 AM To <James_C_Paulet@bluecrossmn.com> i