HomeMy WebLinkAbout06-18-07 Item 2B, EDC Plan Presentation
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~
EN HILLS
MEMORANDUM
DATE:
June 4, 2007
Work Session Agenda Item 2.B
TO:
Mayor and City Council
Karen Barton, Community Development Directo~Qro
Economic Development Strategic Plan
FROM:
SUBJECT:
Backl!round
In March of 2006, the Economic Development Commission contracted with DeSCo, Inc., to
develop an Economic Development Strategic Plan for the City. DeSCo spent several months
working with the Economic Development Commission, interviewing City Council members,
Economic Development Leaders, Key Stakeholders, and the general public to gather information
to prepare a strategic plan for the City. On August 16, 2006 the EDC adopted the Strategic Plan,
In October of 2006, the EDC presented the Strategic Plan to the City Council. At that time, the
Council received the Plan and directed the EDC to make revisions and bring it back to Council
for approval.
Since that time, the Economic Development Commission has had numerous meetings discussing
and refining the Strategic Plan.
Discussion
Attached is the revised Economic Development Strategic Plan (Attachment A). The EDC has
refined the overall goals ofthe Plan and has prioritized key activities.
City of Arden Hills
City Council Work Session
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The EDC has identified 19 goals organized around four cornerstones of economic development
and segmented to address the EDC Strategic Imperatives, stemming from the charge ofthe EDC,
as follows:
EDC Strategic Imperatives
. Build an organization that will support economic development
. Attract and facilitate a community that fosters investment
. 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 existing businesses
. Develop and maintain strong relationships between City leaders and the largest corporate,
academic and non-profit residents, and
. Create an environment attractive to educated, creative or talented individuals to provide a
strong workforce for the City's businesses, with emphasis on quality more than quantity.
Four Cornerstones of Economic Development
. Building an Organization that Supports Economic Development
. Creating a Community that Fosters Economic Activity
. Retaining the Existing Business Base
. Attracting New Investment
Economic Development Strategic Plan Goals. in sununarv:
1. Community and Economic Development Director
To emphasize the priority of economic development within the city, the EDC
recommends changing the title and job description of the Community Development
Director to Community and Economic Development Director.
2. Support Staff for Economic Development
The EDC recommends the City hire a full-time Economic Development administrative
assistant to assume the support responsibilities necessary for meeting these goals and
priorities and to aid the Community and Economic Development Director in
assuming and managing added responsibilities.
3. Council and Commission Development
The EDC recommends periodic training sessions for the City Council and
Commissioners to provide information and increased expertise on a variety of topics.
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4. Strengthening of City Administrator's Position
Economic development in Arden Hills hinges on maintaining and developing a
qualified staff. This is facilitated by the City Administrator having full administrative
responsibility of the City while the City Council bears the responsibility for policy
and legislative roles. The EDC recommends a consultant be hired to identify and
develop the most effective roles and responsibilities for the City Administrator and
Council in managing the city.
5. Community Awareness
The EDC recognizes the importance of ensuring our residents understand the city's
vision for economic development, Therefore, the EDC recommends a section on
economic development be included in the monthly newsletter.
6. Redevelopment Director
The City of Arden Hills, with the exception of the TCAAP property, is relatively fully-
developed, The goal for the City now is to optimize the space available to us through
redevelopment. The EDC is recommending hiring a Redevelopment Director to
facilitate the redevelopment of degraded and/or under-utilized properties within the
city to foster new investment and job creation, It is anticipated that this position
would not be necessary until 2012,
7. Gateway Plan
The EDC is recommending the installation of gateway signs at significant entrances
to the City to foster our sense of community and welcome visitors and residents.
8. Way-Finding Signage
Way-finding signage helps direct visitors and residents to specific destination points,
such as the city hall, parks, shopping districts, schools, etc, , within the community.
These signs add to the style of the community and create a greater sense of presence.
The EDC is recommending the installation of way-finding signage in the City in
conjunction with development standards for the City as a whole,
9. Central Business District
Arden Hills grew up as a suburb to a larger metropolitan center, But as its
population grew, so did its need for its own identity. The City did not plan for a city
center, however it is finding that it is important to identify one or more areas as such.
The EDC is recommending the area of Lexington and County Road E be identified as
the city center and that a master plan be developed and implemented to create the
district. The EDC views this initiative as a top priority.
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10. Trails & Recreation Program
Arden Hills is bisected by highways and lakes, separating the community into smaller
residential areas, This separation increases the need to ensure linkage of parks and
trails within the community. In 2002, the City's Parks, Trails, and Recreation
Committee (PTRC) developed a master plan for a parks and trails system within the
City. The plan links the trail system into an interconnected network throughout the
community. The EDC fully supports the PTRC master plan and views this as a top
priority.
II. Development Sites
Arden Hills, as an almost fully-developed community, is running out of developable
sites (with the exception of TCAAP) and is at a point where they should start looking
at master planning neighborhoods, retails districts, business parks, and the city
center. The EDC views this initiative as a top priority and recommends the following
areas as key redevelopment sites: Red Fox/Gray Fox business/industrial area, the
former City Hall site on Highway 96, the Lexington and County Road E business
area, and the Chesapeake property in the Gateway Business District.
12. Business Retention Program
The EDC has initiated a Business Retention Program and looks to continue and
expand the program to ensure the City is meeting the needs of its base and biggest
businesses.
13. Sign Committee
It is unclear whether the city's sign ordinance is overly restrictive of if it is just
perceived to be, If it is in fact the opinion of a significant number of city businesses,
the EDC believes it would be beneficial to establish a committee to review this
matter. The EDC is recommending the City review the number of complaints
received regarding the restrictiveness of the sign code and revisit this issue in the six
to twelve months.
14. Business Issues on the City's Web Page
As a future initiative, the EDC recommends creating a business-only section of the
City's web page to be used as a tool for business retention.
15. Resource Database
In an effort to project a more supportive business environment, the EDC recommends
the creation of a resource directory of business support services available from
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governmental and private sectors, Although the EDC recognizes this as a valuable
initiative, they have determined this to be a later priority.
16. Information Assembly and Readiness
Having accurate and up to date information is critical for program success. The
EDC recommends compiling and professionally presenting marketing information
that can be easily distributed to prospective businesses.
17. Network Development
The EDC has determined that the development of a strong, strategic network is
essential for the marketing success of Arden Hills, The EDC is recommending that
the City staff be provided with an entertainment budget to allow for active network
development,
18. Joint Marketing
Joint marketing is an effective means of promoting an area or region. The EDC is
recommending reviewing and expanding its joint marketing opportunities with
various organizations such as the Twin Cities Chamber and Visit Minneapolis North.
19. Individual Marketing
Highly targeted marketing to pursue specific prospects is at times necessary.
Although the EDC recognizes the value in this initiative, they have determined this
not to be a priority at this time.
BUDGET
To facilitate the development and implementation of the above goals and objectives, the EDC
has prepared a proposed cost estimate/budget associated with the plan (Attachment B),
The budget provides for strategic implementation over a 5 year period. Although the Council is
being asked to approve the Strategic Plan and proposed budget, it is recognized that I) the
budget is an estimate and will have to be incorporated into the City's annual budgeting process;
2) the City Council is not obligated to approve more than one year of the budget at a time, if at
all; and 3) by approving the Strategic Plan and proposed budget, the City Council is not held to
adopting the budget.
As a means to finance these activities, the EDC is recommending that all fees collected as part of
the business licensing program be redirected from the General Fund to the Economic
Development Authority (ED A). Additional funding options that the Council may wish to
consider include allocation from the General Fund or instituting an EDA levy.
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Requested Action
The EDC is requesting the City Council review and discuss the attached Economic Development
Strategic Plan and further direct staff to bring it to a future City Council meeting for approval
and adoption.
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Council Work Session
Agenda Item 28
June 18, 2007
ATTACHMENT A
Economic Development
Strategic Plan
Prepared by the Arden Hills
Economic Development Commission
2007
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 Arden Hills Economic
Development Commission (AHEDC) are:
i. Ensure a sustainable, profitable, and competitive economic climate in the
City;
2. Identify and build local capacity to support economic development in the
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
6. Prepare Arden Hills' residents to be productive, positive contributors,
equipped with life skills that are valued in the future.
To pursue these priorities, the EDC will follow a strategic plan through 2012
comprised of the 19 goals and objectives presented below. 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 19 goals
identified in this plan are organized around four cornerstones for economic
development:
Building an Organization that Supports Economic Development
Creating a Community that Fosters Economic Activity
Retaining the Existing Business Base
Attracting New Investment
Approvals and Adoptions
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:
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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
every sense, the following key staff member was responsible for individual
components of the document:
Karen Barton, Community Development Director
Special thanks are also extended to the attendees at all of 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 for their
active contribution to this process.
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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 create a climate conducive to economic growth. 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. 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.
Economic development strategies are developed by communities who chose
to shape their own future.
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.
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
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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
premise, therefore, of this economic development strategy for Arden
Hills is that an active participation in fostering the economic strength
of the City is an essential and responsible action for the local unit of
government.
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Economic Development Plan for Arden Hills
The EDC represents the interests of Arden Hills' residents, but with special
emphasis on the corporate residents that share and contribute to our
community resources.
The EDC members gather and consider business community input and
recommend to the City Council actions that support those interests; monitors
business activity; and collaborates with other city committees and
commissions to ensure a positive environment for economic development.
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 developed from an interactive process
involving substantial community input. using DeSCo's proprietary
methodology develop and experience of creating strategic plans for
communities throughout the United States. The final stage of our
engagement resulted in the development of this strategic plan.
The plan is segmented to address the EDC Strategic Imperatives:
. Build an Organization that will Support Economic Development
. Attract and facilitate a Community that Fosters Investment
. 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
existing businesses
. Develop and maintain strong relationships between City leaders and the
largest corporate, academic and non-profit residents, and
. Create an environment attractive to educated, creative or talented
individuals to provide a strong workforce for the City's businesses, with
emphasis on quality more than quantity.
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, more work is
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required in the first three cornerstones; Organization, Product and Business
Retention & Expansion. More mature programs are able to shift 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
Business Retention / Expansion.
It is our recommendation that funding and staffing be secured over the next
five years 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. However, this program
is heavily weighted toward the first three; organization, product and business
retention and expansion.
Organizational Develooment
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:
1) Community and Economic Development Director.
For economic development to succeed there needs to be someone in
the community with these responsibilities. Currently, there is no one
on City staff with the title of economic development director. Full
time economic development staff is not warranted at this time.
However, a minimum of part time attention to economic development
is warranted. Our first recommendation is that the awareness of this
priority be recognized through title change. We would recommend
that the title and job description of the Community Development
Director be changed to Community and Economic Development
Director as soon as possible.
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2) Support Staff for Economic Development
The new Community and Economic Development Director cannot
assume the additional responsibilities of their job without sufficient
capacity 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. 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, this position needs to
be put in place to assume the support responsibilities necessary for
meeting this priority.
3) Council and Commission Development
Arden Hills is at a 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 among the
elected officials and commission members. 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. This is facilitated when the City
Administrator has full administrative responsibility of the City while
the City Council bears the responsibility for policy and legislative roles.
We would recommend that a consultant be employed to help develop
the most effective roles and responsibilities for the City Administrator
and Council in managing the city.
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5) Community Awareness
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 supportive of an economic development mission.
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
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 as the TCAAP project is developed, the need to be more actively
involved in the redevelopment of Arden Hills is still present. This
position would be strongly skilled in the ability to take existing
properties and convert them to new investment and job creation
opportunities.
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.
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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 sign age, 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.
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 typically 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 the area of Lexington and CR E has
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.
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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
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
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
PTRCs 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-
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.
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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
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.
13) 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 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.
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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.
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 tile 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.
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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
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.
18) 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.
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19) 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.
Summary Thoughts
A successful strategic plan is, by definition, a usable plan - one that directs
the City's economic development activities as well as its long-range view,
and that yields meaningful improvements in effectiveness, capacity and
relevance.
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 as we have in this document. As a rule, most
strategic plans should be reviewed and revamped every three to five years.
This plan is no exception.
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. This strategic plan for
Arden Hills has addressed the needs of the community in economic
development while taking strides to ensure that the common pitfalls for plan
failure have been averted. As Arden Hills implements the plan in a logical,
sequential manner, it will energize its economic development efforts, and
with it the community as a whole.
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Appendix A: 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.
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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.
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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 old economy people believed that: In the new economy, people believe
. that:
1 ---~~------,.- --~--cr----"-'----"-------~---------~----'-"-""'---"'- _.'''___.mn,,_..,,__._
i Being a cheap place to do business was the 1 Being a place rich in ideas and talent is
: key. I the key.
~"""'.a.'__'__'M____'_;_"';""'M"_'__"~__"";"~;"",;~~-=--~~_"~"'"_''_'__;~''~~''_''__'''_M""M_'____''___''___'_'''''
: Attracting companies was the key. i Attracting educated people is a key.
i---------- ._-".. .,,--.-.---- -.... .. ._'.C' .c..c~~_~~"_,_,"".""";_;;_,,~;;.",.
: A high-quality physical environment was a
: luxury stood in the way of attracting cost-
i conscious businesses.
i Physical and cultural amenities are key in
- attracting knowledge workers.
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! Regions won because they held a fixed - Regions prosper if organizations and
! competitive advantage in some resource or i individuals have the ability to learn and
i skill. ; adapt.
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i Economic development was government- : Only bold partnerships among business,
led. I government, and nonprofit sector can
i 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
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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 (eave 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 four
cornerstones:
1. Building an Organization That Supports Economic Development
2. Creating a Community that Fosters Economic Activity
3. Retaining The Existing Business Base
4. Attracting New Investment
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Appendix B: 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:
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 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
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necessary about what issues are 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 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.
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Council Work Session
Agenda Item 28
June 18, 2007
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