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CITY COUNCIL AGENDA REPORT
MEETING DATE: April 27, 2015
AGENDA#: 5G
PREPARED BY: Dan Rogness, Community & Economic Development Director
PRESENTED BY: Dan Rogness
AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION APPROVING A SCOTT COUNTY
CDA ECONOMIC DEVELOPMENT INCENTIVE GRANT APPLICATION FOR
TECHNICAL ASSISTANCE
DISCUSSION: Introduction
The purpose of this agenda report is to consider approval of a Technical Assistance
application to the Scott County CDA for its 2015 Economic Development Incentive
Grant Program to assist in the evaluation and planning for Phase III of the Technol-
ogy Village Business Accelerator program.
History
The City of Prior Lake has previously been awarded two Technical Assistance
Grants from the Scott County CDA. The first grant was used to evaluate a broad-
band fiber to the home network in Prior Lake and the second grant was used to
complete a downtown parking analysis.
On March 24, 2015, the Scott County CDA distributed material for its 2015 grant
program related to economic development projects/studies with a submittal deadline
of April 10th. Because of the short notice, the Scott County CDA requested applica-
tion materials be submitted by the application deadline of April 10th and a supporting
resolution be submitted by May 1St
The CDA has revised its EDI Program to include two application categories:
1. Technical Assistance — up to $30,000 grant with a 100% local match (total
funds available = $90,000).
2. Corridor Readiness — up to $125,000 grant with a 50% local match (total
funds available = $250,000).
The Technical Assistance category provides funding to help communities enhance
economic development activities through surveys, programs and studies. The Cor-
ridor Readiness category provides funding to help communities complete
plans/studies related to land use, transportation, environment, etc. in order to max-
imize development opportunities within ten defined Scott County corridors.
Current Circumstances
The Technology Village Business Accelerator program has been growing with seven
current program participant businesses and a total of twenty-two employees. The
available Technology Village space is essentially fully occupied and the Technology
Village Board of Directors has been discussing opportunities to expand the program
and move into Phase III, which is an outside building.
The Technology Village board has also been evaluating ways to i) expand the pro-
gram focus, beyond emerging-technology businesses; ii) provide opportunities to
bring more participants into the program; and iii)consider a Scott County partnership
or leadership role with satellite or sister accelerator programs in communities
throughout the county.
Conclusion
The attached application materials request $12,500 of grant funds to be used, in
addition to $12,500 of matching funds, to hire a consultant to evaluate the current
Technology Village Business Plan, develop options for program expansion, provide
recommendations and job description for an executive director position, identify
funding sources necessary for program expansion, and recommend next steps and
prepare an implementation schedule.
Staff and the EDA support an application for an EDI Program grant to hire someone
with experience working with business accelerators to complete a report and de-
velop a plan to expand the Technology Village program into Phase III. Staff esti-
mates a total consulting cost of $25,000, which would need to be matched with
$12,500 of local funds from the EDA Professional Service budget. The EDA's 2015
Professional Services budget is $22,000. The EDA recommended approval of the
grant application on April 20, 2015.
ISSUES: Space options are limited for additional program participants and it appears to be
time to evaluate expanding the business accelerator program. Additionally, the
Technology Village Phase 11.2 Business Plan recommended a part-time Executive
Director be hired in Fy2016 to manage the operations of the accelerator, provide
direct business assistance to program participants, establish a network of service
providers and program sponsors and continue to grow the program.
FINANCIAL Short-term: consulting costs and city staff time dedicated to the supporting the
IMPACT: Technology Village Phase III planning.
Long term: potential financial impacts related to acquiring/leasing property and ad-
ditional financial contributions to the Technology Village program.
ALTERNATIVES: 1. Motion and a second, as part of the Consent Agenda, to approve a Resolution
Approving a Scott County CDA Economic Development Incentive Grant Appli-
cation for Technical Assistance for $12,500 with a local match of $12,500 from
the EDA's Professional Services budget.
2. Motion and a second to deny the CDA EDI application.
RECOMMENDED Alternative#1
MOTION:
ATTACHMENTS: 1. EDI Grant Program Application Material
2
O� PRION
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4646 Dakota Street SE
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RESOLUTION 15-xxx
A RESOLUTION APPROVING A SCOTT COUNTY CDA ECONOMIC DEVELOPMENT INCENTIVE
GRANT APPLICATION FOR TECHNICAL ASSISTANCE
Motion By: Second By:
WHEREAS, The City of Prior Lake has identified a proposed project within the City that meets the Scott
County Community Development Agency (CDA) Economic Development Incentive Grant
program's purposes and criteria; and
WHEREAS, The City has completed various studies and planning documents related to the Technology
Village Business Accelerator of which the proposed project is a component; and
WHEREAS, The City has the capability and capacity to ensure the proposed project be completed and
administered within the Economic Development Incentive Grant program guidelines; and
WHEREAS, The City has the legal authority to apply for financial assistance; and
WHEREAS, The City is supportive of enhancing economic development opportunities that will serve to create
jobs, enhance the tax base and improve the lives of Scott County residents.
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
MINNESOTA as follows:
1. The recitals set forth above are incorporated herein.
2. The City Council approves the application forfunding from the Scott County CDA Economic Development
Incentive Grant Program in the amount of$12,500 for Technical Assistance to complete Phase III of the
Technology Village Business Accelerator Business Plan ($28,000 total project cost).
3. The Mayor and City Manager are authorized to execute such agreements as necessary to receive and
use the funding for the proposed project.
PASSED AND ADOPTED THIS 27th DAY OF APRIL 2015.
VOTE Hedberg Keeney McGuire Morton Thompson
Aye ❑ ❑ ❑ ❑ ❑
Nay ❑ ❑ ❑ ❑ ❑
Abstain ❑ ❑ ❑ ❑ ❑
Absent ❑ ❑ ❑ ❑ ❑
Frank Boyles, City Manager
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Scott County Community Development Agency
2015 EDI Grants
CDA Grant Applications
Applications are due April 10,2015 by 4:00 pm.
The applicant shall submit an electronic copy of the application and an executed original
application.
The electronic application should be submitted to Stacy Crakes, First Stop Shop Business
Development Manager,at scrakes@scottfss.org and must be received no later than 4:00 p.m.on
Friday,April 10,2015.
The executed original application must be received no later than 4:00 p.m. on Monday,April
13,2015 at the Scott County CDA, Attn: Bill Jaffa, Executive Director- 323 South Naumkeag,
Shakopee,Minnesota 55379.
If you are submitting multiple projects/applications, please indicate below the priority of each
project in your community.
Local Priority Project Name Type of Grant Requested
(rank with 1 being (Corridor Readiness or
highestpriority) Technical Assistance
1 Prior Lake Technology Village Business Accelerator—Phase III Technical Assistance
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Grant Types
Corridor Readiness. This program is intended to assist communities in completing land use,
transportation and environmental studies and contracted planning services that are intended to
maximize development and/or redevelopment opportunities and the investment of capital within
the top ten commercial corridors as established by the SCALE Transportation and Economic
Development Committee.
Technical Assistance. This program is intended to provide funding for those projects that will
enhance economic development activities with the goal of achieving new job creation in Scott
County.
Required Resolution Provisions
The CDA recognizes the fast-tracked deadline may not be compatible with receiving approval by
the respective city council or county board prior to the application deadline. If possible, please
provide the Required Resolution Provisions with your application submittal;otherwise it will need
to be submitted no later than May 1, 2015. Grant awards will be made contingent on receipt of
resolution if the resolution is not provided at time of application. tt
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2015 EDI—Technical Assistance Grant
CDA
Grant Application
Project Title: Prior Lake Technology Village Business Accelerator—Phase I II
Lead Organization: City of Prior Lake
Project Manager Name Dan Rogness
Address 1 4646 Dakota Street SE
Address 2
City, ST,Zip Prior Lake,MN 55372
Phone 952 447-9813
Fax 952 447-4245
Email I droqness(@cityofodorlake.com
Project Partners: Please list any project partners that will help fund and complete this project
1. Name/Title Frank Boyles,Executive Director
Organization Prior Lake Economic Development Authorit
2. Name/Title
Or anization
3. Name/Title
Organization
Project Summary:(Please provide a 100-word description of your proposal.)
Prior Lake established the Technology Village Business Accelerator in January 2013. With multiple support
services and a professional office environment, the Technology Village program offers emerging technology
businesses the support and assistance necessary to nurture and accelerate business development. The
Technology Village program has been very successful with seven new Prior Lake businesses and a combined
total of 22 new employees. The purpose of the Phase III analysis is to identify a consultant to build upon the
program success and identify the best strategies for program expansion in Prior Lake and potentially to other
Scott County communities.
Financial Summa Please provide a summa of our conwiete budget,hom page 2.):
Activit 1:Evaluate current Technology Wage Business Plan $4,500
Activit 2: Develop options for program expansion $9,000
Activity 3: Provide recommendations for program director position $4,500
Activit 4: Identify funding sources necessary for program expansion $5,500
Activit 5: Recommend next steps and implementation schedule $4,500
Total Request: $12,500 Grant =28,000 Total
Pagel
EDI -Technical Assistance Grant Budget Worksheet
Project Title: Prior Lake Technology Village Business Accelerator—Phase III
Activities&Tasks Cost Categories
(a)Grant (b)Local cash match* (c)Local staff time (d)Total
estimate
1)Activity One $2,000 $2,000 10 hrs.@$50=$500 $4,500
Evaluate current Technology
Village Business Plan
2)Activity Two $4,000 $4,000 20 hrs.@$50=$1,000 $9,000
Develop options for program
expansion
3)Activity Three $2,000 $2,000 10 hrs.@$50=$500 $4,500
Provide recommendations for
program director position
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4)Activity Four $2,500 $2,500 10 hrs.@$50=$500 $5,500
Identify funding sources
necessary for program expansion
5)Activity Five $2,000 $2,000 10 hrs.@$50=$500 $4,500
Recommend next steps and j
implementation schedule
Totals $12,500 $12,500 $3,000 $28,000
* Local cash match of 1:1 is required and does not include in-kind staff time.
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Scott County Community Development Agency
EDI -Technical Assistance Grant
Competitive Criteria Responses
C D,A Max award per project:$30,000
Threshold Criteria: Applicants must first meet the threshold criteria to be considered
for funding.
1. Application must be approved by the respective city council or county board by resolution that
includes the Required Resolution Provisions(attached)no later than May 1,2015. Grant awards will
be made contingent on receipt of resolution if the resolution is not provided at time of application.
2. Application must demonstrate a minimum leverage rate of 1:1 ($1 of other funds for every $1 of
Technical Assistance Grant).
If the application meets all threshold criteria,the application will then be reviewed and ranked on the following
competitive criteria.Please limit responses to three(3)pages In length and describe how the proposed project
fits each of the criteria indicated below.
1) Economic Benefit: The project should have a defined impact on the local economy. This impact
is measurable through growth/projected growth in property taxes and new and/or retained Livable
Wage Jobs($14.00 per hour). [15 Maximum Points]
The Technology Village Mission Statement is to support the growth of emerging technology-based
businesses within an entrepreneurial environment that encourages collaboration,fosters job creation
and provides connections to local®ional resources.
With multiple support services and a professional office environment, the Technology Village
Business Accelerator program offers emerging technology businesses the support and assistance
necessary to nurture and accelerate business development.
Technology Village provides participant businesses with an affordable and customized lease,
furnished offices,development assistance and guidance from experienced business professionals,
shared conference rooms and office equipment, networking opportunities with other entrepreneurs
and community organizations and education programs.
Not only do clients of the Technology Village Program benefit, but the community of Prior Lake
benefits through greater economic development activity, new employment opportunities, enhanced
community image,increased entrepreneurialism and additional tax revenues that support services.
The Technology Village Business Accelerator has proven to be an effective economic development
tool for the City of Prior Lake since the program opened in January 2013. The program currently has
seven program participant businesses with a total of twenty-two employees working in Prior Lake.
The program's first graduate business now leases over 3,500 square feet of private office space and
has created nine new full-time employment positions in Prior Lake with an average annual wage of
$90,000.
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The Technology Village office space in Prior Lake City Hall is now fully occupied and Technology 1
Village continues to receive additional inquiries and program applications, The City of Prior Lake is
confident the program will continue to grow and create additional employment opportunities,increase
tax revenues and encourage entrepreneurialism; however, program expansion will require careful
evaluation and planning to ensure we can offer future program participants the same benefits and
level of service that are available to our current participants.
2) Proiect Understanding: Applications should be consistent with the overall goals and objectives of
the SCALE Unified Economic Development, Land Use, and Transportation Plan Charter. Projects
should promote and parallel the outcomes of the greater SCALE effort. [15 Maximum Points]
A goal of the Unified Economic Development, Land Use and Transportation Plan is to develop and
implement a county-wide economic development strategy and integrated land-use and
transportation plan that helps achieve the vision of providing enough employment in Scott County to
support 50%of the county's labor force.
The Technology Village program has assisted in the creation of twenty-two full-time employment
positions since the program began. The program's emerging technology focus capitalizes on Scott
County's skilled and educated workforce and has been proven to attract Scott County residents,who
previously worked north of the river, to locate their business in our community to avoid the hassles
of commuting and to make the most out of the quality of life offered in Scott County. The additional
employment base has helped improve commerce in downtown Prior Lake and has provided
employment opportunities which match the skills of our residents.
Prior Lake envisions the Technology Village program as a template that can be expanded county-
wide. The city and the Technology Village Board of Directors are very eager to collaborate with
County and other local communities to expand the program throughout Scott County,
3) Transferability: The ability to replicate or apply either the project itself or the information collected
from the project to other communities. [10 Maximum Points]
Every Scott County community could benefit from additional entrepreneurialism and employment
opportunities through a program like Technology Village. Although the Technology Village program
opened in January 2013 the program had been in the planning stages for two-years prior to opening
and the City of Prior Lake has a significant amount of planning and implementation resources.
The Technology Village Board of Directors and the City of Prior Lake Economic Development
Authority developed, and has since updated, a Technology Village Business Plan. The business
plan provides a history of the city's efforts to assemble and organize resources to establish a
business accelerator in the community. The history includes the models of business incubation that I
were considered (public, private or combination), the financial models needed to support start-up
and ongoing operational costs, evaluation of location opportunities in the community and a
recommended plan of action. The business plan also identifies program goals, metrics, program
mission, participant business focus, organization and management structure, establishment of a
Board of Directors, identifies potential service providers, recommends rental rates, details the
participant selection criteria,staffing plan,operating budgets,projects program demand and staffing
needs and provides information on program marketing. All of the City's resources and board and
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staff member experiences and recommendations are available to all other Scott County
communities.
The Technology Village Board of Directors have had many discussions about how our program could
be implemented throughout the county. Part of the focus of the Technology Village Business
Accelerator Phase III analysis will be to evaluate how this program could be expanded into other
Scott County communities.
4) Innovation: New or innovative projects to enhance economic development are encouraged. [10
Maximum Points]
Funding for Technology Village Business Accelerator Phase III would assist in the expansion of a
very innovative project which has been proven to enhance economic development activity in Prior
Lake. Given somewhat limited resources and a slight footprint of 2,000 square feet in Prior Lake
City Hall, the City of Prior Lake Economic Development Authority and Technology Village Board of
Directors have provided evidence that the program will work to grow businesses and expand
employment opportunities. The City of Prior Lake would like to utilize EDI Technical Assistance
funds to identify how this successful program can be expanded in Prior Lake and neighboring
communities to continue to encourage entrepreneurial activity,capitalize on the County's skilled and
educated workforce and create and diversify the employment opportunities for our residents.
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