The URL can be used to link to this page

Home My WebLink About02 12 2018 EDA Agenda Packet FULL Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com 4646 Dakota Street SE Prior Lake, MN 55372 PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY AGENDA Monday, February 12, 2018 – 4:00 p.m. Reports included with this agenda can be found in the Document Center at www.cityofpriorlake.com; please follow this file path: City of Prior Lake\Economic Development Authority\2018\February 12, 2018 1. CALL TO ORDER 2. APPROVAL OF AGENDA 3. APPROVAL OF MEETING MINUTES A. December 11, 2017 4. CONSENT AGENDA A. B. Development Update (01/31/2018) EDA Revenue & Expenditure Report (12/31/17) 5. REMOVED CONSENT AGENDA ITEMS 6. PUBLIC HEARINGS A. No Public Hearings Scheduled 7. OLD BUSINESS A. None 8. NEW BUSINESS A. B. C. D. E. F. Election of Officers BEC Discussion City of Prior Lake Property Ownership Construction Projects Business Impact Game Plan Technology Village Phase II.5 Business Plan Deerfield Business Park Signage (verbal report) OTHER BUSINESS A. B. Staff Updates (verbal report) i. Downtown Lease Agreements ii. Commercial/Industrial Property Listings Commissioner Comments 10. ADJOURNMENT: 6:00 p.m. Those items on the EDA Agenda which are considered routine and non-controversial are included as part of the Consent Agenda. Unless the President or an EDA member specifically requests that an item be on the Consent Agenda be removed and considered separately, Items on the Consent Agenda are considered under one motion, second and a roll call vote. Any item removed from the Consent Agenda shall be placed on the EDA agenda under “Removed Consent Agenda Items” Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com 4646 Dakota Street SE Prior Lake, MN 55372 Economic Development Authority Meeting Minutes December 11, 2017 1. CALL TO ORDER PRESIDENT CHROMY called the meeting to order at 4:00 p.m. Present were Chromy, Briggs, Braid, Sheehan- Kerber and Boucher-Hoese. Wade Larson, member of the Business Engagement Committee (BEC) was present and Kim Prchal, BEC Chair joined the meeting at 4:57p.m. Also present were Executive Director Boyles, Com- munity Development Director McCabe and Planner Schwabe. 2. APPROVAL OF AGENDA MOTION BY SHEEHAN-KERBER, SECONDED BY BOUCHER- HOESE, TO APPROVE THE AGENDA. Ayes by Chromy, Briggs, Braid, Sheehan-Kerber and Boucher-Hoese. The motion carried 5-0. 3. APPROVAL OF MEETING MINUTES MOTION BY BRIGGS, SECONDED BY BRAID, TO APPROVE THE NOVEMBER 13, 2017 MEETING MINUTES. Ayes by Chromy, Braid, Briggs, Sheehan-Kerber and Boucher-Hoese. The motion carried 5-0. 4. CONSENT AGENDA A. Development Update (11/30/2017) BRAID questioned the percentage increase for commercial permits in 2017 over 2016. MCCABE stated that the number of building permits issued in 2017 is approximately 140% higher than in 2016. MOTION BY SHEEHAN-KERBER, SECONDED BY BOUCHER-HOESE, TO APPROVE THE CONSENT AGENDA. Ayes by Chromy, Briggs, Braid, Sheehan-Kerber and Boucher-Hoese. The motion carried 5-0. 5. REMOVED CONSENT AGENDA ITEMS None 6. PUBLIC HEARING No Public Hearings 7. OLD BUSINESS None 8. NEW BUSINESS A. Advisory Committee Appointments MCCABE provided an overview of the Technology Village Board of Directors and the Business Engagement Committee. BRAID currently serves as the EDA liaison on the Technology Village Board of Directors and BRIGGS currently serves as the EDA liaison to the Business Engagement Committee (BEC). BRIGGS stated he has enjoyed serving as the liaison to the BEC and would be happy to continue to remain on the committee in 2018; however, he would be open to others who may be interested in stepping in. BRAID shared that Technology Village has a good board and he is willing to serve again in 2018 unless another member is interested in that role. 2 SHEEHAN-KERBER and CHROMY offered to serve as substitutes to the Technology Village Board of Directors and the Business Engagement Committee. MOTION BY SHEEHAN-KERBER SECONDED BY BRAID, TO APPOINT BRIGGS AS THE LIAISION TO THE BUSINESS ENGAGEMENT COMMITTEE. Ayes by Chromy, Briggs, Braid, Sheehan-Kerber and Boucher- Hoese. The motion carried 5-0. MOTION BY CHROMY SECONDED BY BRIGGS, TO APPOINT BRAID TO SERVE ON THE TECHNOLOGY VILLAGE BOARD OF DIRECTORS IN 2018. Ayes by Chromy, Briggs, Braid, Sheehan-Kerber and Boucher- Hoese. The motion carried 5-0. B. First Stop Shop Prior Lake Pitch MCCABE explained the Vierling Family Property marketing material produced by Stacy Crakes and Jo Foust with the Scott County First Stop Shop. Following a meeting with the property brokers, Crakes and Foust offered to produce the marketing packet which was included in the EDA meeting packet for commissioner review. BRIGGS suggested the EDA review the marketing materials and discuss if there are elements of the packet that the EDA would like highlighted further. SHEEHAN-KERBER asked if the packet previously produced by the EDAC, now known as the BEC, is similar to the First Stop Shop information packet. MCCABE stated some of the materials are similar and shared information about the printed marketing materials which were created in 2014 based on direction from the BEC. The intent at that time was to create one document that summarized Prior Lake information including: population, school district, housing, etc. He explained that the City now has that information available online. Discussion occurred regarding information necessary to appropriately market the City including but not limited to the City History, events, assistance opportunities and state of current condition. CITY MANAGER BOYLES stated that First Stop Shop produces marketing information on a regular basis and it may be beneficial to have Ms. Crakes and Ms. Foust attend an upcoming EDA meeting to present information to the EDA. BRIGGS, in addition, suggested a joint BEC/EDA meeting to review the existing Community Profile marketing materials and make necessary updates, including information collected from the community survey, after meeting with the First Stop Shop staff. EDA MEMBERS directed staff to invite Ms. Crakes and Ms. Foust from the First Stop Shop to the January 2018 EDA meeting. C. Staff Updates (verbal report) MCCABE shared that the Technology Village Fast Track Business Challenge has been selected as Program of the Year by the Economic Development Association of Minnesota. The award announcement will not be made official until the awards ceremony, which will be held on January 18, 2018. MCCABE discussed the Celebrate Prior Lake website produced by Mike Stout of Tamarack Consulting, which is a for-profit website that highlights the businesses in Prior Lake and surrounding area. He encouraged EDA mem- bers to view the website if they have not had an opportunity to do so. 3 BRIGSS stated that he has met with Mr. Stout regarding the Celebrate Prior Lake website. CHROMY shared that he is familiar with the Celebrate Prior Lake website. Discussion followed regarding existing avenues and possible future endeavors to market Prior Lake effectively. CHROMY shared that the drone flyover video of the Vierling property was very interesting. MCCABE will forward the video to the EDA members. BRAID suggested the video from the City of Alexandria related to a planned road project that began in 2013 which documented the process and experience the businesses had during that project be sent to the BEC and EDA. CITY MANAGER BOYLES stated Staff will share the City of Alexandria video with the BEC and EDA. D. Business Climate and Economic Vitality Discussion (verbal report) BOUCHER-HOESE shared concerns about potential impacts to downtown businesses because of the HWY13/CR21 intersection improvement project. She stated that conversations should be happening now regard- ing how to prepare and assist. She also expressed a concern that there appears to be a saturation of similar businesses in the downtown currently and recommended the city identify opportunities to diversify the types of businesses in the downtown. BRIGGS stated the BEC liaisons have helped to keep a better pulse on the business climate. He continued by sharing that the City would benefit greatly from being more aware and attentive to the current business climate to best assist businesses during the intersection improvement project. CHROMY commented on the increasing level of commercial development recently and added there is approxi- mately 180,000 sq. ft. of additional grocery/retail space in Scott County than there was this time last year and what businesses need are more customers. BRIGSS questioned if the BEC could assist with more regular visits to the commercial business areas. PRCHAL indicated that making quarterly liaison visits may be difficult for the BEC since the commercial liaison program is only in its second year; however, the liaisons may be able to obtain a sampling from each of the commercial area. She stated that communication with potential customers outside of the City of Prior Lake would be important so that they are aware the businesses are open during construction and how customers can access them. BOUCHER-HOESE questioned if there were financial opportunities available to downtown businesses. Discussion ensued about events, lending programs, and other opportunities to encourage more foot-traffic/cus- tomers in downtown Prior Lake. EDA will continue discussion related to lending opportunities for Prior Lake Busi- nesses who may be negatively impacted by the TH13/CR21 corridor improvement projects. E. Construction Projects Business Impact Game Plan (discussion with BEC) 4 PRCHAL suggested Staff contact the City of Chaska and Prior Lake businesses, through the Prior Lake Chamber, downtown businesses in Chaska who have been impacted by recent road improvement projects to garner infor- mation about their successes and suggestions. CHROMY indicated that up-to-date access information was difficult to find during the Franklin Trail project and suggested the city or contractor could provide weekly communication prior to and during construction which would inform business owners, customers and citizens of what is open, closed, available parking or impeded and for how long. BRIGGS stated that a meeting will be held next week to form subcommittees that will make recommendations related to signage, communication, phasing, etc. for the 21/13 intersection improvement project. He suggested directing staff to discuss best practices including wayfinding signage, project phasing, communication, etc. from communities who have been through it. BRAID suggested working with the Chamber to develop additional events to promote Prior Lake businesses and to be strategic in the areas in which the City can assist. CHROMY suggested that obtaining information and/or developing strategies in four areas would be instrumental in understanding the information that would be prudent to the success of businesses during road construction: • History/Best Practices o Wayfinding Signage • Events o Collaborating with others, including but not limited to: Chamber, SMSC • Financial Assistance o Opportunities • State of Current Condition o Existing Business Climate 9. OTHER BUSINESS A. Commissioner Comments BRIGGS congratulated PRCHAL on her recent appointment as the Chair of the BEC. MCCABE shared that the City Council will be meeting on January 8, 2017 with a work session which interferes with the regular meeting schedule of the EDA. Staff suggests holding an EDA meeting on January 22, 2018 with the First Stop Shop and a joint EDA/BEC meeting on February 12, 2018 to discuss marketing materials and opportunities for business retention during the intersection improvement projects. BRIGGS shared that there is a lot of good going on surrounding “The Big Game” in February and that he is confident the City will be in a great position in part by the improved communication and partnership with the Chamber. 10. ADJOURNMENT MOTION BY BRIGGS, SECONDED BY SHEEHAN-KERBER, TO ADJOURN THE MEETING. With all in favor, the meeting adjourned at 6:06 p.m. 4646 Dakota Street SE Prior Lake, MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE: February 12, 2018 AGENDA #: 4A PREPARED BY: Casey McCabe, Community Development Director AGENDA ITEM: DEVELOPMENT UPDATE DISCUSSION: Introduction The purpose of this consent agenda item is to review a year-end 2017 residential and commercial development update as well as receive the monthly develop- ment update as of January 31, 2018. History EDA Commissioners requested an update of residential and commercial activity at each meeting. Conclusion The attached memorandum provides a summary of residential and commercial development in the City of Prior Lake. ALTERNATIVES: RECOMMENDED MOTION ATTACHMENT: 1. Motion and a second, under the Consent Agenda, to accept the Develop- ment Updates. 2. Remove this item from the consent agenda for additional discussion. Alternative No. 1. 1. Year-End 2017 Development Update 2. January 2018 Development Update Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com Memo Date: January 11, 2018 To: City of Prior Lake Economic Development Authority From: Casey McCabe, Community Development Director Subject: Residential & Commercial Activity Update Below is an update of residential and commercial development in the City of Prior Lake as of Dec. 31, 2017. Name Address Type (New/Relocation/Expansion) Previous Tenant/Owner gg Boutique 16180 Hastings Ave. SE Relocated Business Giggle Gals The Magnolia Shop 4773 Dakota St. SE New Business gg Boutique Trademark Title Services 16268 Eagle Creek Ave. SE New Business ReMax Olive Moon 4775 Dakota St. SE Relocated Business Finder's Fee Whitmer Crafts 4646 Colorado St. SE New Business Vacant Lease Space Canvas Tattoo 6880 Boudin St. NE Relocated Business Verizon Edward Jones - Scott Pierce 16154 Main Ave. SE, Suite 110B Relocated Business Wensmann Office - Lakefront Plaza Edward Jones - Christy McCoy 4719 Park Nicollet Ave. Suite 260 New Business/Tenant Build-Out Vacant Lease Space Luxury Laser Edu 14070 Commerce Ave. NE Ste. 200 New Business Kids Talk Childrens Therapy Boathouse Brothers Brewing 16211 Main Ave. SE New Business/Major Remodel Memories on Main Sweet Nautical 16228 Main Ave. SE, Ste 101 New Business Lakes Area Realty Blahnik Law Office 4617 Colorado St. SE Relocated Business/Major Addition Former SF Residential Fountain Hills Self-Storage 4400 Fountain Hills Dr. NE New Construction Vacant Land Prior Lake Revival SW corner of Duluth Ave/CH21 New Construction Vacant Land SDDI Sign Systems 5702 Graystone Ct. SE New Construction Vacant Land Advantage Chiropractic 16197 Main Ave. SE New Business Prior Lake Spine Port City Bakery 5832 Industrial Lane SE New Business/Major Addition Triple Play (Building Add'n) Universal Motors 16720 Welcome Ave. SE New Construction Universal Motors (2nd Bldg.) Home Time Real Estate 16154 Main Ave. SE, Suite 110C Relocated Business/Tenant Build-Out Wensmann Office (Lakefront Plaza) Bongo's Closet 15981 Jordan Ave. Suite 2 New Business Vacant Pure Joy Pilates 16186 Main Ave. SE New Business Vacant Kumon Math & Reading Center 14180 Commerce Ave NE, Suite 104 New Business Indigital 2017 Prior Lake Commercial Activity Number of Permits Declared Value Number of Permits Declared Value Number of Permits % Increase / (% Decrease) Declared Value % Increase / (% Decrease) Single Family Dwellings 80 $26,138,000.00 108 $37,163,000.00 (25.93)(29.67) Townhouses (# units)20 $1,940,000.00 4 $676,000.00 400.00 186.98 Multiple Units 5 (218 units)$34,716,000.00 3 (222 units)$28,672,000.00 (1.80)21.08 New Commercial Industrial & Commercial 12 $13,828,500.00 4 $5,622,000.00 200.00 145.97 Residential 238 $2,862,000.00 692 $4,914,700.00 n/a (41.77) Industrial & Commercial 24 $1,173,500.00 17 $457,000.00 n/a 156.78 Mechanical 3297 $0.00 751 $0.00 n/a n/a Mechanical (SF & TH)400 $0.00 448 $0.00 n/a n/a TOTALS 1074 $80,658,000.00 2022 $77,504,700.00 n/a 4.07 Increase / (Decrease)2017 Year to Date 2016 Year to Date New Residential Additions and Alterations Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com Memo Date: February 7, 2018 To: City of Prior Lake Economic Development Authority From: Casey McCabe, Community Development Director Subject: Residential & Commercial Activity Update Below is an update of residential and commercial development in the City of Prior Lake as of Jan.. 31, 2018. Number of Permits Declared Value Number of Permits Declared Value Single Family Dwellings 6 $4,016,000.00 2 $338,000.00 Townhouses (# units)0 $0.00 0 $0.00 Multiple Units 0 $0.00 0 $0.00 New Commercial Industrial & Commercial 0 $0.00 0 $0.00 Residential 25 $482,500.00 30 $471,000.00 Industrial & Commercial 2 $742,000.00 1 $25,000.00 Mechanical 64 $0.00 50 $0.00 Mechanical (SF & TH)24 $0.00 8 $0.00 TOTALS 121 $5,240,500.00 91 $834,000.00 They are flat-rate permit fees. t Mechanical permits include but are not limited to furnaces, water heaters, softeners, and fireplaces. They are flat-rate permit fees. tt Mechanical (SF & TH) permits include required plumbing, heating, sewer and water and fireplace permits for new single family residences. 2018 Year to Date 2017 Year to Date New Residential Additions and Alterations 4646 Dakota Street SE Prior Lake, MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE: February 12, 2018 AGENDA #: 4B PREPARED BY: Casey McCabe, Community Development Director AGENDA ITEM: EDA REVENUE & EXPENDITURE REPORT (12/31/17) DISCUSSION: Introduction The purpose of this consent agenda item is to review the 2017 Revenue & Expendi- ture Report for the EDA through December 31, 2017. History EDA Commissioners requested monthly financial reports on a quarterly basis. Current Circumstances The EDA had revenues of $148,996 and expenditures of $98,228 in 2017; net of $50,768. The primary reasons the expenditures were less than budgeted were due to lower staffing levels than anticipated and the EDA only spent 5% of their Profes- sional Services fund in 2017. Technology Village generated $8,292 in revenues and $1,335 in expenditures. Conclusion EDA members receive quarterly financial reports of revenues and expenditures. ISSUES: This document provides a summary of activities associated with costs as budgeted by the EDA. FINANCIAL IMPACT: None. ALTERNATIVES: 1. Motion and a second, under the Consent Agenda, to accept the EDA 2017 Rev- enue & Expenditure Report through December 31, 2017. 2. Remove this item from the consent agenda for additional discussion. RECOMMENDED MOTION: Alternative #1 ATTACHMENTS: 1. EDA 2017 Revenue & Expenditure Report REVENUE AND EXPENDITURE REPORT FOR CITY OF PRIOR LAKE 1/2Page : 01/11/2018 02:41 PM User: cmccabe DB: Prior Lake PERIOD ENDING 12/31/2017 % BDGT USED AVAILABLE BALANCE ACTIVITY FOR MONTH 12/31/2017 YTD BALANCE 12/31/2017 2017 AMENDED BUDGETDESCRIPTIONGL NUMBER Fund 240 - EDA SPECIAL REVENUE FUND Revenues Dept 00000.00 - GENERAL 99.09 1,271.85 66,759.58 138,728.15 140,000.00 Current Property Taxes - General Purpos240-00000.00-31010.00 100.00 (412.64)412.64 412.64 0.00 Market Value Credit Aid240-00000.00-33423.00 0.00 0.00 0.00 0.00 0.00 Administrative Charges240-00000.00-34111.00 107.42 (185.48)2.66 2,685.48 2,500.00 Interest Earnings240-00000.00-36210.00 100.00 1,123.04 0.00 (1,123.04)0.00 Unrealized Inv.Gain(Loss)240-00000.00-36225.00 0.00 0.00 0.00 0.00 0.00 Transfer from Other Funds240-00000.00-39203.00 98.74 1,796.77 67,174.88 140,703.23 142,500.00 Total Dept 00000.00 - GENERAL Dept 46500.00 - ECONOMIC DEVELOPMENT 0.00 0.00 0.00 0.00 0.00 County-City Aids/Grants - Operating EDA240-46500.00-33610.14 0.00 0.00 0.00 0.00 0.00 Prof Service Fee Deposit - EDA240-46500.00-36220.14 0.00 0.00 0.00 0.00 0.00 Total Dept 46500.00 - ECONOMIC DEVELOPMENT Dept 46503.00 - TECH VILLAGE INCUBATOR 97.56 207.47 766.67 8,292.53 8,500.00 Facility Rental - EDA240-46503.00-34760.02 97.56 207.47 766.67 8,292.53 8,500.00 Total Dept 46503.00 - TECH VILLAGE INCUBATOR 98.67 2,004.24 67,941.55 148,995.76 151,000.00 TOTAL REVENUES Expenditures Dept 46500.00 - ECONOMIC DEVELOPMENT 74.38 24,690.86 6,837.18 71,682.14 96,373.00 Wages - Full Time240-46500.00-51100.01 85.00 450.00 250.00 2,550.00 3,000.00 Wages - Commissioners240-46500.00-51100.05 100.00 (1,085.14)0.00 1,085.14 0.00 Overtime - Full Time240-46500.00-51110.01 0.00 0.00 0.00 0.00 0.00 Sick Leave - Buy Down240-46500.00-51208.01 0.00 0.00 0.00 0.00 0.00 Accrued Comp Time240-46500.00-51301.00 75.63 115.50 34.20 358.50 474.00 Compensated Absences240-46500.00-51400.00 75.55 1,483.94 439.78 4,585.06 6,069.00 Social Security Contributions240-46500.00-51450.00 75.57 346.67 102.86 1,072.33 1,419.00 Medicare Contributions240-46500.00-51451.00 76.05 1,718.45 512.79 5,457.55 7,176.00 PERA Contributions240-46500.00-51460.00 67.65 3,014.65 611.48 6,304.35 9,319.00 Health Insurance240-46500.00-51470.00 68.75 75.00 12.50 165.00 240.00 Retiree HCSP Contributions240-46500.00-51472.00 62.50 180.00 20.00 300.00 480.00 Dental Insurance240-46500.00-51473.00 79.68 12.80 5.26 50.20 63.00 Life Insurance240-46500.00-51474.00 82.24 76.00 0.00 352.00 428.00 Workers Compensation Insurance240-46500.00-51477.00 0.00 250.00 0.00 0.00 250.00 Office Supplies240-46500.00-52010.00 72.00 700.00 0.00 1,800.00 2,500.00 Legal Services240-46500.00-53020.00 4.95 19,009.94 0.00 990.06 20,000.00 Professional Services - General240-46500.00-53100.80 0.00 250.00 0.00 0.00 250.00 Telecommunications240-46500.00-53210.00 14.00 860.00 0.00 140.00 1,000.00 Training and Employee Development240-46500.00-53310.10 0.00 500.00 0.00 0.00 500.00 Required Notice Publication240-46500.00-53510.00 0.00 750.00 0.00 0.00 750.00 Memberships and Subscriptions240-46500.00-54310.00 0.00 1,034.00 0.00 0.00 1,034.00 Miscellaneous Expense240-46500.00-54320.00 0.00 0.00 0.00 0.00 0.00 Projects - Professional Services240-46500.00-55050.00 64.03 54,432.67 8,826.05 96,892.33 151,325.00 Total Dept 46500.00 - ECONOMIC DEVELOPMENT REVENUE AND EXPENDITURE REPORT FOR CITY OF PRIOR LAKE 2/2Page : 01/11/2018 02:41 PM User: cmccabe DB: Prior Lake PERIOD ENDING 12/31/2017 % BDGT USED AVAILABLE BALANCE ACTIVITY FOR MONTH 12/31/2017 YTD BALANCE 12/31/2017 2017 AMENDED BUDGETDESCRIPTIONGL NUMBER Fund 240 - EDA SPECIAL REVENUE FUND Expenditures Dept 46503.00 - TECH VILLAGE INCUBATOR 4.12 239.71 0.00 10.29 250.00 Office Supplies240-46503.00-52010.00 0.00 500.00 0.00 0.00 500.00 Small Equipment - General240-46503.00-52400.10 8.00 460.00 0.00 40.00 500.00 Legal Services240-46503.00-53020.00 0.00 0.00 0.00 0.00 0.00 Professional Services - Software Design240-46503.00-53100.60 23.90 1,521.96 0.00 478.04 2,000.00 Telecommunications240-46503.00-53210.00 0.00 2,250.00 0.00 0.00 2,250.00 Rent Subsidies240-46503.00-54095.00 0.00 2,500.00 0.00 0.00 2,500.00 Business Assistance240-46503.00-54100.00 67.50 325.00 0.00 675.00 1,000.00 Memberships and Subscriptions240-46503.00-54310.00 26.46 367.72 0.00 132.28 500.00 Miscellaneous Expense240-46503.00-54320.00 0.00 0.00 0.00 0.00 0.00 Building & Building Improvements240-46503.00-55520.00 0.00 0.00 0.00 0.00 0.00 Furniture and Office Equipment240-46503.00-55560.00 0.00 0.00 0.00 0.00 0.00 Machinery and Equipment240-46503.00-55570.00 14.06 8,164.39 0.00 1,335.61 9,500.00 Total Dept 46503.00 - TECH VILLAGE INCUBATOR 61.08 62,597.06 8,826.05 98,227.94 160,825.00 TOTAL EXPENDITURES 516.72 (60,592.82)59,115.50 50,767.82 (9,825.00)NET OF REVENUES & EXPENDITURES 61.08 62,597.06 8,826.05 98,227.94 160,825.00 TOTAL EXPENDITURES 98.67 2,004.24 67,941.55 148,995.76 151,000.00 TOTAL REVENUES Fund 240 - EDA SPECIAL REVENUE FUND: 4646 Dakota Street SE Prior Lake, MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE: February 12, 2018 AGENDA #: 8A PREPARED BY: Casey McCabe, Community Development Director AGENDA ITEM: ELECTION OF OFFICERS DISCUSSION: Introduction Article 5.1 of the EDA Bylaws state that the officers of the EDA shall be elected at the first meeting of the year. Officers include President, Vice-President, Treasurer, Secretary, and Assistant Treasurer. The EDA’s first meeting of the year is on February 12, 2018. History The 2017 elected EDA officers are: (1) Dave Chromy as President; (2) Zach Braid as Vice-President; (3) Don Uram [Cathy Erickson] as Treasurer; (4) Frank Boyles as Secretary; and (5) Dan Rogness [Casey McCabe] as Assistant Treasurer. Current Circumstances All EDA Commissioners are eligible to become officers for 2018 and the officers elected in 2017 are eligible for reappointment. The EDA Bylaws provide that the city’s Finance Director be designated as the Treasurer, and the bylaws further allow non-commissioners to hold the officer positions of Secretary and Assistant Treasurer. In previous years, the City Manager / EDA Executive Director has been elected Secretary and the Community Development Director has been elected Assistant Treasurer. Conclusion The 2018 EDA officers of President, Vice-President, Treasurer, Secretary and As- sistant Treasurer should be elected by the EDA Commissioners on February 12th. FINANCIAL IMPACT: None ALTERNATIVES: 1. Motion(s) and second(s) to elect EDA officers for 2018. 2. Table the election. RECOMMENDED MOTION: 1. Alternative #1. 4646 Dakota Street SE Prior Lake, MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE: February 12, 2018 AGENDA #: 8B PREPARED BY: Casey McCabe, Community Development Director AGENDA ITEM: BEC DISCUSION DISCUSSION: Introduction The purpose of this agenda item is to allow time for a joint meeting with the BEC to discuss updates to the Piror Lake Community Profile and other topics of interest to the committees. History The BEC has created and updated a City of Prior Lake community profile brochure multiple times over the years; most recently was an electronic brochure update in August 2016 (attached). Current Circumstances One of the EDA’s goals for 2018 is to increase engagement with other committees, including the BEC, to promote partnerships and collaboration. The EDA felt the first joint meeting between the two committees this year could be used to review and update the community profile, including information collected from the com- munity survey. City staff has updated a few sections of the Community Profile. Conclusion The BEC had previously printed the community profile; the current version is only available electronically. One of the discussion topics at the joint meeting will be whether the latest update is available electronically, hard copy or both. FINANCIAL IMPACT: Potential costs related to printing of the Community Profile. ALTERNATIVES: 1. Motion and Second to direct the BEC to complete the update to the Prior Lake Community Profile. 2. Continue discussion at a future meeting. RECOMMENDED MOTION: 1. Alternative #1. DEMOGRAPHIC DATA FINANCING & INCENTIVES The Prior Lake City Council and Economic Development Authority (EDA) participate in and have access to the following programs which provide economic assistance to business and industry locating or expanding in the city: • Tax Increment Financing • Conduit Bonds • Sewer & Water Fee Deferral Program • EDA Revolving Loan Fund • Scott County CDA Open to Business • Tax Abatement • MN Department of Employment & Economic Development (DEED) Loans and Grants 2016 Population Prior Lake 25,049 Scott County 140,898 Population Trends 1990 2000 2010 2020 2030 2040 Prior Lake 11,482 15,917 22,796 27,500 32,500 37,600 Scott County 57,846 89,498 129,928 153,750 176,260 199,520 Sources: U.S. Census Bureau, American FactFinder, Minnesota State Demographic Center and the Metropolitan Council 2040 Regional Plan. 4646 Dakota St. SE, Prior Lake, MN 55372 • (952) 447-9800 • www.cityofpriorlake.com 25,520 2016 2016 142,436 $101,128 $286,100$90,198 $63,217 $191,500 $258,400 • A location in the heart of one of the fastest growing counties in Minnesota. • A great transportation network in close proximity to I-35 and U.S. 169. • Access to the Scott County fiber optic network which spans 300 miles. • Land development options, new and established industrial parks and quality infrastructure. • The lowest city tax rate of the seven communities in Scott County. • Superior quality of life, offering residents and visitors a wide variety of parks, trails, lakes and wetlands; as well as a charming downtown and abundant entertainment options. • A housing stock with great diversity for families and individuals of all ages and incomes. • A community committed to growing its business relationships. • A business-friendly Economic Development Authority (EDA), Business Engagement Committee (BEC) and Chamber of Commerce to promote and grow business. Prior Lake Offers: Casey McCabe Community Development Director City of Prior Lake 4646 Dakota St. SE Prior Lake, MN 55372 cmccabe@cityofpriorlake.com (952) 447-9815 Stacy Crakes, P.E. Business Development Manager Scott County CDA - First Stop Shop 200 4th Avenue W Shakopee, MN 55379 scrakes@scottfss.org (952)496-8613 Sandi Fleck President Prior Lake Chamber of Commerce 4785 Dakota St. Prior Lake, MN 55372 sandi@priorlakechamber.com (952) 440-1000 A Wonderful Place to Live,Work and Play for a Lifetime. Prior Lake Community Profile Prior Lake, located in Scott County at the southwest edge of the Twin Cities Metropolitan Area, is known for its beautiful lakes, numerous outdoor amenities, recreation opportunities, entertainment venues, outstanding schools and high-quality neighborhoods. l Leadership: school board, superintendent and administration. l Providing a high-quality education. l Meeting the learning needs of students. l Teaching and support staff. l Communicating important issues and decisions. Source: Decision Resources, 2010 survey analysis Prior Lake’s labor force is extremely well educated with more than 40% of its residents earning a bachelor’s degree or higher. High School Graduate or Higher (age 25+) Prior Lake 96.1% 96.8% Scott County 94.6% 94.9% Minnesota 92.3% 92.6% Bachelor’s Degree or Higher (age 25+) Prior Lake 43.3% 45.5% Minnesota Scott County 38.3% 38.8% 33.2 % 34.2% Source: U.S. Census Bureau, AmericanFactFinder WORKFORCE Entities (estimate) Employees (estimate) Professional/Business Services 109 117 403 413 Trade, Transportation and Utilities 85 86 545 547 Construction 80 81 480 542 Financial Activities 64 69 219 222 Education and Health Services 54 55 1,201 1,057 Other Services 57 63 566 674 Leisure and Hospitality 29 28 3,423 3,470 Public Administration 4 3 917 996 Total / All Industries 482 502 7,754 7,921 A flourishing community that has grown from a population of 15,917 in 2000 to 25,049 25,520 in 2015 2016, an increase of 59% 60%. The population of Prior Lake is expected to reach nearly 38,000 by 2040. Positioned for continued commercial development with more than 70 TBD acres of pad-ready commercial, business park and industrial land. Growing, with more than 2,500 additional acres of commercial and residential land within an orderly annexation area that will become available for development in the near future. Home to hundreds of successful businesses, including Mystic Lake Casino Hotel which is Scott County’s largest employer. Source: MN DEED Quarterly Census of Employment and Wages (QCEW), Quarter 4 3, 2015 2017 4646 Dakota St. SE, Prior Lake, MN 55372 • (952) 447-9800 • www.cityofpriorlake.com Prior Lake-Savage Area School District 719 serves Prior Lake, Savage and surrounding townships. Within the district there are six elementary schools, two middle schools and a high school. In addition, Prior Lake is home to several private schools. Prior Lake-Savage Area Schools is TOP 10 in the Twin Cities in... l Prior Lake is... Industries l l l LOCATION & TRANSPORTATION It is conveniently located with easy access to major transportation corridors. Its transportation system includes major roadways such as State Hwy. 13, County Hwy. 42, County Hwy. 21 and numerous others that provide convenient access to the Twin Cities Metropolitan Area and Greater Minnesota. County Hwy. 21 is a four-lane roadway which connects I-35 (7 miles) and US Hwy. 169 (1.5 miles) through the center of the city. Minnesota Valley Transit Authority (MVTA) provides transit services to and from other municipalities within the Twin Cities Metropolitan Area which bring customers and employees to support community businesses and expands the employment options for southwest metro residents. MSP International Airport is approximately 25 minutes away and easily accessible via I-494 from I-35 or US Hwy. 169. PRIOR LAKE 21 MSP Minneapolis St. Paul 4646 Dakota St. SE, Prior Lake, MN 55372 • (952) 447-9800 • www.cityofpriorlake.com l l l l l Prior Lake is an ideal community for new and expanding business because... PARKS, RECREATION & ENTERTAINMENT 4646 Dakota St. SE, Prior Lake, MN 55372 • (952) 447-9800 • www.cityofpriorlake.com Prior Lake is a premiere recreational community, featuring... More than 100 miles of trails and sidewalks and 55 city parks encompassing approximately 1,050 1,360 acres. Cleary Lake Regional Park (1,186 acres) and Spring Lake Regional Park (373 acres) border the city and provide additional recreational opportunities. Two large athletic complexes, band shelter, pavilion, fishing piers, boat slips, swimming beaches, winter skating rinks and sledding hills. Prior Lake is home to 15 lakes, including Upper and Lower Prior Lake which total 1,340 acres and 590-acre Spring Lake. Prior Lake is considered one of the most popular lakes in the seven-county metropolitan area for boating, skiing and fishing. Abundant golfing opportunities with the Wild’s Golf Club, Legends Golf Club, Heritage Links Golf Club, Cleary Lake Golf Course, Stonebrook Golf Club and the Meadows at Mystic Lake Golf Course. RiverSouth: Land of Big Fun is a promotional partnership of Canterbury Park, Mystic Lake Hotel Casino, the Renaissance Festival, Valleyfair, the Cities of Shakopee and Prior Lake and the Shakopee Mdewakanton Sioux Community (www.riversouthmn.com). l l l l l 4646 Dakota Street SE Prior Lake, MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE: February 12, 2018 AGENDA #: 8C PREPARED BY: Amanda Schwabe, Planner AGENDA ITEM: City of Prior Lake Property Ownership DISCUSSION: Introduction The City typically acquires properties when dedicated as part of a plat or through tax forfeiture from the State of Minnesota when the properties are needed for a public purpose. Most of these properties are utilized for right of way, sewer/wa- ter/sanitary sewer lines/drainage and/or parks and trails. When a city acquires tax-forfeited property at no cost, the use of the land will be restricted to specific public purposes specified on the deed document itself. When the city ceases to use the land for the specified purposes, the land is generally required to revert to the state of Minnesota. History At their December 11, 2017 meeting, the EDA directed staff to research city- owned properties and bring back additional information regarding their potential for sale. Current Circumstances Utilizing GIS, Planning and Engineering Staff reviewed aerial photos, plats and associated historical documents for 281 properties owned by the City of Prior Lake. Pending additional research, thirteen of the 281 properties have been identified for possible relinquishing. After initial review, the properties in question do not appear to be currently utilized for park, trail, drainage/utility or right of way purposes. The next step for staff would be to work with the City Attorney to research the thirteen identified parcels in greater detail to determine their potential for relin- quishing. Conclusion Staff has researched city-owned properties as directed. A list of thirteen prop- erties with potential for relinquishing, as well as aerial photos, are attached. ISSUES: Properties acquired through tax forfeiture at no cost to the City of Prior Lake would be relinquished back to the State of Minnesota. Subsequent purchase by a non-governmental agency may allow the total market value to be added back into the tax base. Formal action is required by the City Council to relinquish properties. 2 FINANCIAL IMPACT: Relinquished properties could have a positive impact on the tax base. Additional costs associated with review by the City Attorney will be necessary. ALTERNATIVES: 1. Motion and second to direct staff to work with the City Attorney to research some or all of the thirteen identified parcels to determine which parcels may be good candidates for relinquishment. 2. Motion and second to accept staff’s report and defer action at this time. RECOMMENDED MOTION: 1. Alternative #1 ATTACHMENT: 1. List of city owned properties with potential for relinquishing. 2. Aerial photos of properties with potential for relinquishing. City Owned Properties with Potential for Relinquishing PID Type/Purpose GISAcres Last Sale Date (Per Scott County) EMV Land EMV Total Street #Street Name Potential for Relinquishing Comments Zoning PlatId PlatName 1.250330010 Vacant 0.15191 281,200.00$ 281,200.00$ 0 Yes Storm Sewer on east side of property R1SD 25033 GRAINWOOD PARK 2.259350020 Vacant Lakeshore 0.34695 384,000.00$ 384,000.00$ 0 Yes Sunfish Bay R1SD 3.250011040 ROW 0.28019 03/30/2012 71,500.00$ 71,500.00$ 4590 COLORADO ST SE Yes East of Arcadia Ave/West of Premier Dance TC 25001 CITY OF PRIOR LAKE 4.250011220 ROW 0.33643 03/09/2012 60,500.00$ 60,500.00$ 4570 COLORADO ST SE Yes West of Arcadia Ave TCT 25001 CITY OF PRIOR LAKE 5.250810030 Vacant 2.62369 144,100.00$ 144,100.00$ 0 RIDGEMONT AVE SE Yes North of Kop Farm; Wooded R1 25081 OAKS,THE 6.252860550 ROW 0.35848 500.00$ 500.00$ 0 Yes Sell to develop with property to the north?C-3 25286 CARRIAGE HILLS 2ND ADDN 7.259020960 ROW 0.59335 03/04/2003 75,000.00$ 75,000.00$ 16950 PANAMA AVE SE Yes South of McDonalds C-2 8.253390550 Vacant 0.04673 2,900.00$ 2,900.00$ 0 BLUEBIRD TRL NE Yes Sell to Adjacent Owner?R1 25339 KNOB HILL 2ND ADDN 9.253430290 State Ded - Trail 0.04823 3,100.00$ 3,100.00$ 14149 BLUEBIRD TRL NE Yes Relinquish to State R1 25339 MAPLE HILL 2ND ADDN 10.259260250 State Ded - Park 1.97503 110,000.00$ 110,000.00$ 0 MANITOU RD NE Yes Relinquish to State; 2 S/W lines stubbed in R1SD 11.250520030 State Ded - Utility/Walkway Access 0.2517 10,000.00$ 10,000.00$ 0 Yes Relinquish to State R1 25052 EAGLE RIDGE ACRES 12.250460140 State Ded - Park/Storm Water Retention 0.30578 30,000.00$ 30,000.00$ 0 SHADY BEACH TRL NE Yes Relinquish to State R1SD 25046 SHADY BEACH # 2 13.250460150 State Ded - Park/Storm Water Retention 0.39061 30,000.00$ 30,000.00$ 0 SHADY BEACH TRL NE Yes Relinquish to State R1SD 25046 SHADY BEACH # 2 Updated: January 16, 2018 Row #1 PID: 250330010 Row #2 PID: 259350020 Row #3 PID: 250011040 Row #4 PID: 250011220 Row #5 PID: 250810030 Row #6 PID: 252860550 Row #7 PID: 259020960 Row #8 PID: 253390550 Row #9 PID: 253430290 Row #10 PID: 259260250 Row #11 PID: 250520030 Row #12 PID: 250460140 Row #13 PID: 250460150 4646 Dakota Street SE Prior Lake, MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE: February 12, 2018 AGENDA #: 8D PREPARED BY: Casey McCabe, Community Development Director AGENDA ITEM: CONSTRUCTION PROJECTS BUSINESS IMPACT GAME PLAN DISCUSSION: Introduction The purpose of this agenda item is to discuss opportunities where the City of Prior Lake may be able to assist with downtown customer attraction efforts or lessen the 2019 construction impacts on downtown businesses. History During the December meeting, EDA members discussed the potential impacts construction activities will have on downtown businesses and what communica- tion or other assistance may be useful to downtown businesses in 2019. Current Circumstances A downtown retailer has reached out to the EDA requesting collaboration on a marketing campaign to increase customer traffic and revenue to downtown busi- nesses through social media, radio and newspaper ads. The request is for the City of Prior Lake to assist with marketing now so that downtown businesses can be as healthy as possible prior to the beginning of the construction. Another topic for discussion is a suggestion from an EDA member who proposed a potential waiver of event fees in 2019 for events that attract visitors to the downtown area. This action would either require City Council action to approve the waiver of event fees or action from the EDA to cover those event fees. The EDA also briefly discussed a loan program, either sponsored by the City of Prior Lake, private businesses, or a combination of both, which would help sup- port downtown businesses during construction. Conclusion ALTERNATIVES: RECOMMENDED ALTERNATIVE: ATTACHMENTS: Each of the proposed options has a financial impact. Prior to pursuing any of the alternatives above, or other opportunities to assist the downtown businesses during construction, the EDA may wish to discuss what level of funding the EDA or City Council is comfortable with and which opportunities will provide the larg- est impact for downtown business owners. 1. Motion and second to provide direction to staff related to 2. Motion and second to continue discussion to a future meeting. As determined by the EDA. 1. SW News Media Quote To: Becky Leffler From: Nancy Etzel The following is a price quote as requested. These quotes are based on a minimum 13X run. To Include the following publications: Prior Lake American, Savage Pacer, Shakopee Valley News, Jordan Independent, Eden Prairie News, Chanhassen Villager, Chaska Herald, Lakeshore Weekly News. Distribution 54,500 homes. Full Page: $7822.78 X 13 $101,696.14 Half Page: $3766.52 X 13 $48,964.76 To include the following publications: Prior Lake American, Savage Pacer, Shakopee Valley News, Jordan Independent. Distribution 17,900 homes. Full Page: 4075.11 X 13 $52,976.43 Half page: 1962.09 X 13 $25,507.17 4646 Dakota Street SE Prior Lake, MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE: February 12, 2018 AGENDA #: 8E PREPARED BY: Casey McCabe, Community Development Director AGENDA ITEM: TECHNOLOGY VILLAGE PHASE II.5 BUSINESS PLAN DISCUSSION: Introduction The purpose of this agenda item is to review and adopt the Technology Village Business Accelerator Phase II.5 Business Plan. History The Technology Village Board of Directors annually reviews and updates the Technology Village Business Plan. Current Circumstances The attached Phase II.5 Technology Village Business Plan was drafted by the Technology Village Board of Directors. This business plan outlines the status of the program and provides an overview of phase II.5 development including program participant focus, proposed rental rates, virtual program participation, selection criteria and 2018 operating budget. The primary difference between the current business plan and previous versions is the Phase II.5 plan is the first plan to guide the programming in the direction of a Scott County-wide accelerator program for the benefit of all communities within the county, as opposed to a Prior Lake only focus. Conclusion The attached Business Plan was reviewed and recommended for approval by the Technology Village Board of Directors at their January 16, 2018 meeting. FINANCIAL IMPACT: The 2018 EDA budget includes an allocation of $7,820 to support the Technology Village program. Technology Village revenues are anticipated to offset program operation costs. In 2017, Technology Village revenues were $8,292 while expenditures were $1,335; expenditures do not include staff time. ISSUES: Approval of the business plan is not the final input the EDA will have on this topic. The business plan provides that the countywide accelerator program proceeds with the understanding that revenues and expenditures for the involved parties will be calculated and ultimately considered by the EDA for adoption once the work progresses to that point. ALTERNATIVES: 1. Motion and a second to adopt the Technology Village Business Accelerator Phase II.5 Business Plan as proposed or with amendments. 2. Take no action and continue discussion at a future meeting. RECOMMENDED MOTION: Alternative #1 ATTACHMENTS: 1. Technology Village Business Accelerator Phase II.5 Business Plan SCOTT COUNTY BUSINESS INCUBATOR-ACCELERATOR PHASE II.5 BUSINESS PLAN 4646 DAKOTA STREET SE PRIOR LAKE, MN 55372 952-496-8830 www.scottfss.org January, 2018 Page 1 Table of Contents 1.0 EXECUTIVE SUMMARY .................................................................................................................. 2 2.0 HISTORY ................................................................................................................................................. 3 3.0 MISSION, ADVANTAGES & GOALS OF A COUNTY-WIDE INCUBATOR PROGRAM ....... 3 3.1 MISSION ................................................................................................................................ 4 3.2 ADVANTAGES OF A COUNTY-WIDE PROGRAM ........................................................ 4 3.3.1 SCOTT COUNTY 2018 GOALS ......................................................................................... 4 3.3.2 TVBA 2018 GOALS .............................................................................................................. 5 4.0 SITE(S) .................................................................................................................................................... 6 5.0 MANAGEMENT AND STAFFING ....................................................................................................... 7 5.1 STAFF ...................................................................................................................................... 8 5.2 BOARD OF DIRECTORS ................................................................................................ 9 5.3 ADVISORY BOARD ....................................................................................................... 13 5.4 BYLAWS................................................................................................................................ 13 5.5 SERVICE PROVIDERS / TECHNOLOGY VILLAGE PARTNERS ....................... 13 6.0 MARKETING AND REBRANDING ...................................................................................................... 14 7.0 BUDGET AND FUNDING ....................................................................................................................... 14 7.1 2 018 TVBA OPERATING BUDGET .......................................................................... 15 7.2 2018 SCOTT COUNTY CDA INCUBATOR OPERATING BUDGET ............. 15 8.0 SCOTT COUNTY INCUBATOR METRICS .................................................................................. 16 9.0 PROGRAM PARTICIPANT FOCUS ............................................................................................... 16 9.1 PROGRAM PARTICIPANT SUCCESS RATE .......................................................... 17 9.2 SELECTION CRITERIA ................................................................................................ 17 9.3 PROJECTED TVBA PROGRAM DEMAND .............................................................. 18 9.4 TVBA PROGRAM PARTICIPANT FORECAST ....................................................... 18 10.0 SCOTT COUNTY ‘VIRTUAL’ ACCELERATOR PROGRAM .................................................... 18 11.0 VALUE OF A JOB .............................................................................................................................. 19 Page 2 1.0 EXECUTIVE SUMMARY The purpose of this Business Plan is to guide the programming and direction of a Scott County- Wide Business Incubator/Accelerator program for the benefit of all communities within the county. This strategic plan was drafted with input from the Prior Lake Technology Village Board and intended to provide the foundation for Scott County CDA’s First Stop Shop (FSS) and Scott County communities, and the future Scott County Incubator/Accelerator Board of Directors for the expansion of the accelerator program throughout the county. It is the intent that this Plan will evolve as the program moves forward and the accelerator program at Prior Lake’s Technology Village will be transitioned into a county-wide incubator/accelerator program The National Business Incubation Association (NBIA) defines business incubators as a catalyst tool for either regional or national economic development. (Please see Exhibit 1: Glossary of Terms). Business incubators are typically funded either through private investment or municipalities. The purpose of a Scott County Business Incubator/Accelerator program is to foster economic development by providing entrepreneurs with technical and financial assistance to help jump-start and accelerate their business plans, resulting in additional quality jobs in Scott County. The City of Prior Lake established the Technology Village Business Accelerator program in the fall of 2012 and began operations in 2013. The accelerator program was originally established to serve entrepreneurs in technology and professional service with a technology focus, in the City of Prior Lake. The program expanded over the past five years to allow business participants in all cities and townships within Scott County. The program is currently in its sixth year of operation and has six program participants (Four non-virtual and two virtual participants), with a total of thirty-two employees. The Technology Village office space within city hall, as of the third quarter of 2017, is at full occupancy. With a 2015 Economic Development Incentive (EDI) Grant from the Scott County Community Development Agency (CDA), Prior Lake hired a consultant, Greenwood Consulting Group, Inc., to assess the Technology Village Business Accelerator (TVBA) and provide recommendations for its future direction, including possible expansion or relocation. This resulted in a Phase III Program Analysis, which is referenced throughout this document, and included as Exhibit II. Based partly on the on findings in this Program Analysis, the Scott County FSS began to have discussions with Prior Lake city staff to examine the opportunity to broaden the footprint of the program on a county-wide level. In addition, several Scott County cities expressed an interest in potentially having incubator/accelerator programs, but had been unable to do so on their own. This Business Plan serves as the next step in expanding the Incubator/Accelerator Program throughout Scott County. This Plan addresses: • The history of the Prior Lake Technology Village Accelerator Program • Mission and Goals for a County-Wide Incubator/Accelerator • Physical Site(s) and Virtual Program Opportunities • Management and Staffing Page 3 • Marketing and Re-branding • Programming and Platforms • Metrics to Evaluate Success • Program Participation Focus • The “Virtual Participation” Program; and • The Value of a Job 2.0 HISTORY The Prior Lake EDA approved its first Business Plan for the Technology Village Business Accelerator on July 16, 2012. The City Council initially budgeted $50,000 to fund the first phase of Technology Village, including the purchase of office equipment and furniture. Over the years, the budget has been reduced. The 2018 preliminary budget is $7,820 with participant fees covering all expenses, outside of staffing. Technology Village contains approximately 2,000 square feet of space on the main floor of Prior Lake City Hall; including 5 hard-walled offices and approximately 800 square feet of open co-working/collaboration space. The offices are furnished and participants are provided resources such as internet, phone, printer/copier, and a break room. The City of Prior Lake provides the improved space and equipment. In 2014, the program in Prior Lake was expanded to include some off-site office space, in private properties located within city limits. Participants were able to negotiate their own lease arrangements for space and then would receive some rent reimbursement from the TVBA. In 2017, the City decided to eliminate the option for participants to receive a rent reimbursement. In 2017, First Stop Shop relocated their offices to Technology Village, occupying one office and one cubical within the incubator space. As of October, 2017 all leasable space in Technology Village was 100% occupied, with six program participants (including Virtual participants). Employment has increased as a result of Technology Village. In September, 2013 there were two employees associated with the program. This increased to 14 in September of 2014; 28 in September of 2015; 25 in September of 2016 and has been at 32 employees as of September, 2017. 3.0 MISSION, ADVANTAGES & GOALS OF A COUNTY-WIDE INCUBATOR PROGRAM The Scott County CDA supports the growth of emerging technology and professional service businesses with a technology focus, within an entrepreneurial environment that encourages collaboration, fosters job creation and provides connections to local & regional resources. Page 4 3.1 MISSION The Mission of the Scott County CDA Incubator/Accelerator is to provide a venue to encourage and nurture innovation and entrepreneurship, in a collaborative environment, resulting in the expansion of high wage, high skill jobs within Scott County. In general, the mission of any business accelerator is to aid in the successful development of emerging businesses. Ideally, businesses will grow and move from the Scott County CDA Incubators/Accelerators out into the communities and contribute to the overall vitality, diversity, and growth of the economy. Not only do participants of the Scott County CDA Incubators/Accelerators benefit, but the program is designed so Scott County benefits through greater economic development activity, new high wage, high skill employment opportunities, enhanced community image, increased entrepreneurialism and additional tax revenues that support services. 3.2 ADVANTAGES OF A COUNTY-WIDE PROGRAM Advantages of a County-Wide Incubator, versus independent incubator programs in each community, include: • Significantly reducing the amount of staff time each city would have to provide to make their own programs work; • Coordinated marketing efforts on education, training, and professional development programs; • Coordination with other targeted business growth programs in Scott County, such as Open to Business and Economic Gardening; • Document consolidation - leases, agreements, business plans, etc. would all be managed through one source rather than each city having to develop their own; • Recruitment of participants and marketing costs (websites, advertising, etc.) would also benefit from economies of scale; • Shared space in the county, allowing entrepreneurs from any community access to the dedicated space in participating cities as well as conference rooms (as available); and • Overall reduced program costs when pooling resources. 3.3.1 SCOTT COUNTY CDA PROGRAM 2018 GOALS Goals established to move forward with the implementation of a county-wide incubator include: • Establishing a pipeline of technology and professional service businesses that will allow the continued full use of the Scott County CDA Incubator program while continuing to accommodating the six existing program participants during the term of their agreements and retaining their businesses in Scott County upon graduation from the program. o Participate in the second annual Scott County FAST-TRACK Business Challenge. o Present information regarding the incubator program to Scott County cities and Chambers of Commerce, Open to Business Program and other regional and Page 5 state partners (i.e. GREATER MSP, DEED) in an effort to spread awareness and gain support for marketing the program. o Market the county-wide incubator program through various print and social media channels. o Recruit mentors and board members from the participating Scott County cities. o Build relationships with school programs within public schools, MNCAPS, community colleges, etc. to support projects of program participants. • Obtaining funding approval necessary from interested cities to fully implement Phase III Business Plans, or the Scott County CDA Incubator Program. o Work in cooperation with local government units to budget for the development of local incubator programs. o Investigate the use of EDI grant funds to support the development of satellite incubator programs. o Continue to budget, through the FSS, for staffing to manage the county-wide incubator program and part-time Executive Director/Manager, as recommended by the Phase III Program analysis. o Investigate grant opportunities to support the county-wide incubator effort. o Formal Organization – Research the benefits of establishing a 501(c) 3 to allow access to federal CDBG/SCDP. o Continue to review lease rates and Virtual Participant rates to encourage a program that is financially self-supporting, once initial capital expenditures are covered. • Adding incubator sites within Scott County, as participants are identified and cities are able to identify suitable sites and a budget to accommodate the development of the site. o Identify at least one community and physical site in year 1 (2018) with a potential additional physical site for 2020. • Building synergy among program participants across Scott County, that are in like industries, allowing collaboration and coordination in educational programming; boot camps for participants, etc. 3.3.2 TVBA 2018 GOALS Prior Lake Technology Village Board goals for 2018 include: Continue to implement the recommendations of the Technology Village Phase III Program Analysis to expand the TVBA Virtual Program into other Scott County Cities with FSS and PL TVBOD support. • Create a Business Plan which identifies the specific tasks necessary to secure funding and/or sources of funds to support Scott County program expansion. • Participate in the second annual Scott County FAST-TRACK Business Challenge. Page 6 • Identify additional program participants, both virtual and physical; to increase the number of TVBA related employees working in Scott County. 4.0 SITE(S) The Technology Village Phase III Program Analysis completed by Greenwood Consulting Group, Inc., recommends a single, centralized location for a county-wide incubator. At this time, the estimated $2.5M for development of that scenario is not feasible. The Phase III Program Analysis also recommends a county-wide expansion to reach a larger number of entrepreneurs with a dedicated Executive Director to help the accelerator program flourish. This plan acknowledges the efficiencies which would be realized with one incubator facility; however, also recognizes the need to jump start a county-wide program with satellite offices in communities with available public space, or private space dedicated for incubation/acceleration, that are willing to participate in the program. It is proposed the existing space in Prior Lake City Hall (Technology Village) continue house entrepreneurs in the program. The cities of Savage and Shakopee have also identified potential public space which may serve as satellite incubator facilities. While other cities in Scott County are interested in providing an incubator program for their residents/businesses they currently do not have public space available to accommodate a facility. Requirements for any community participating in the Scott County CDA Incubator/Accelerator program, with dedicated space, would include: • Incubator space would be required to be available to all Scott County eligible business start-ups. The space would not be limited to businesses or residents from within any specific city. • In order to ensure consistency, lease agreements, rental rates, and marketing would be consistent for the various sites. This may be modified if a future site for a manufacturing incubator is developed, with larger sizes and different amenities. • Each community would be required to provide the space, at no charge to the Scott County Incubator Program. This could include the dedication of existing public space; or municipal payment for the leasing of private space. If no public space is available, businesses from cities may participate in the Virtual Program, or lease space in a facility with vacancies. • Each community would be required to maintain or arrange for the maintenance of the space including the funding of utilities, maintenance and cleaning. • Each community would invoice and collect rent and virtual participant payments to off- set building and operational expenses incurred by the community. Or…. FSS invoices and collects rents. On a quarterly basis, FSS will remit rent payments to the participating community, less administrative costs. Page 7 • Each community would be required to build out the incubator space with needed walls, cubicles, desks, computers, printers, telephone and internet access. Capital improvements may vary depending on the focus area of the respective incubator/accelerator space. • Each space would be developed to allow 24-7 access for program participants. This could be accomplished through key fobs, issuance of keys, etc. • All spaces would be designed to serve as an incubator/accelerator facility with participants participating in educational training and mentorship programs, and intended “graduation” from the program and facility within three years, moving into private space in the county. • Each community would be required to provide a liaison to serve on the Scott County CDA Incubator/Accelerator Board of Directors as well as a mentor with experience in the industry of focus for the community. Each community is required to appoint an alternate in the event the liaison is unable to attend a Board meeting or function. In order to encourage efficiencies, ensure higher occupancy rates and manage facilities it is recommended additional sites be phased in over time versus the development of seven different locations/sites in each community. 5.0 MANAGEMENT AND STAFFING Prior Lake’s Technology Village is a publicly sponsored business accelerator with its primary funding provided by the City of Prior Lake Economic Development Authority. The organizational structure of Technology Village has included the Prior Lake Economic Development Authority, Technology Village Board of Directors, City of Prior Lake staff support, and as of 2017, support from First Stop Shop staff. The expansion of the program to a county-wide program would expand the organizational structure. The illustration below depicts the participants anticipated to move the program forward. Page 8 5.1 STAFF Prior Lake’s Technology Village (Phase I and Phase II) staffing has been accomplished with existing City of Prior Lake staff. The Community Development Director for the City of Prior Lake served as the Technology Village Executive Director. The Executive Director was assisted by Prior Lake Community Development staff and existing City of Prior Lake support staff. Additionally, members of the Board of Directors have had a hands-on approach to assist in the program’s staffing needs. The Executive Director and city staff, along with members of the board, have coordinated and provided services to program participants, cultivated resource networks, managed facility development, and managed ongoing operations. The Technology Village Board of Directors recommended a part-time Executive Director be hired as a component of the Phase III plan, based on Greenwood Consulting Group’s Phase III Analysis findings report, 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 and expand the reach of the program. In 2017, First Stop Shop hired a full-time Business Development Specialist. The position was expanded to include shared duties with the City of Prior Lake’s Community Development Director. Executive Director. Current staff for Technology Village includes: Page 9 Casey McCabe, Community Development Director, City of Prior Lake. Casey currently oversees the Technology Village web site, issuance of keys to Technology Village, preparation of metrics and oversight of the budget, responding directly to the Board of Directors and Prior Lake EDA. Jo Foust, Business Development Specialist, Scott Co. First Stop Shop. Jo has been actively involved with Prior Lake’s Technology Village since January, 2017. She has 16 years of experience as a small business owner of a municipal planning and economic development consulting firm. She has been involved with the marketing of Technology Village, the development of the FAST-TRACK Challenge and coordination of bi-monthly Board meetings and workshops, including correspondence with program participants. As the Phase III plan, or county-wide incubator program is developed, it is proposed cities which propose to provide physical space for an incubator satellite office enter into an agreement with the Scott County First Stop Shop (FSS). The agreement would outline the roles and responsibilities of the community as well as FSS’s role in providing management and oversight including the preparation of lease agreements, coordinating educational programs, round-tables, meeting agenda’s preparation, etc. City staff would be responsible for the collection of rent, coordination of utilities, cleaning, etc. of their independent spaces. A sample Agreement is included as Exhibit III. 5 .2 BOARD OF DIRECTORS Board of Directors. It is proposed the current Board of Directors for Prior Lake Technology Village provide direction and oversight for the county-wide incubator. As new sites are added, it is recommended a Scott County Incubator/Accelerator Board of Directors be appointed from the participating communities with expertise in their respective incubator/accelerator industry focus. If a participating city cannot find a suitable/willing representative from their community, a representative from another community may fill the Board seat. It is recommended new bylaws be developed with flexibility afforded to the board to adjust as the program further develops. The organizational chart below illustrates the proposed Board composition. In the initial year(s) it is proposed the current Technology Village Board remain active on the Scott County CDA Incubator/Accelerator Board to provide direction, share their experience and assist in the transition. Page 10 5.2.1 ROLES AND RESPONSIBILITIES The Scott County Community Development Agency’s (CDA) Board of Directors will provide the oversight of the program, and possible funding, through the CDA levy. The mission of the Scott County Community Development Agency (CDA) is to strengthen the communities of Scott County by providing affordable housing opportunities to low and moderate income families, promoting economic development, and fostering coordination of public and private resources. The CDA was created by an act of the Legislature in 1974 (Chapter 473). The five-member Board includes representation from each Commissioner District. Board Commissioners serve five-year terms, with no term limits. (This section is yet to be discussed with the CDA Staff and Board) The Scott County CDA Incubator/Accelerator Board’s duties and responsibilities include: • Plan and formulate policy to guide the programming and direction of the county-wide incubator program; • Develop a written document including expectations for satellite incubator/accelerator sites. • Assist in the hiring of the Executive Director position, when required; • Assist in screening prospective incubator/accelerator clients; • Serve as mentors to program participants; • Ensure the overall financial viability of the program; • Serve as a liaison between city governments and the communities; and • In conjunction with EDA members from various communities and city staff, introduce potential or new business representatives to others in the commercial community. Liaisons from participating communities would be responsible for serving as a member on the Scott County Incubator/Accelerator Board. They would also have the following responsibilities: CDA/FSS Board Scott County CDA Incubator/Accelerator Board Members: 1. CDA/FSS Board Member 2-5. Technology Village Board Members 6. Site 2 Liaison/Mentor 7. Site 3 Liaison/Mentor Staff: PT Manager/FSS Site 2 –Liaison and Mentor Site 3 –Liaison and Mentor Site 1. Prior Lake Technology Village Board (PLTVB) (2018) Site 1 –Transitions to Liaison(s) and Mentor(s) as other sites, liaisons and mentors come on board. Page 11 • Serve as a liaison between the Board and the community in which they represent • Provide input on the focus of a satellite incubator/accelerator and its potential participants. • Assist in identifying mentors from the community they represent to assist program participants from their area. The PLTVB Board of Directors would continue to act in an advisory capacity and advise on matters related to the county-wide incubator program. The duties and responsibilities include: • Providing support, direction and oversight to the Scott County Incubator/Accelerator Board of Directors with membership on the Scott County Board. • Continue to serve as mentors to the Participants in Technology Village, and other sites, as deemed mutually appropriate. • Carry out the Goals and Vision of the Technology Village Satellite Accelerator. • Oversee the metrics for Technology Village Accelerator. The current members of the Technology Village Board of Directors serve three year terms, which are renewable up to three consecutive terms. It is recommended the terms of service for the county-wide incubator continue at 3-years. The Board of Directors consists of individuals that share the vision of Technology Village and a county-wide incubator/accelerator program as an economic development initiative, and who are able to provide expertise that will help fulfill the program’s mission. The board has been instrumental in promoting Technology Village generating awareness and understanding of incubator programs as an important economic development tool for Scott County communities. The members have provided network connections and assistance to the Executive Director in creating networks to professional resources that support the success of Technology Village businesses. Below is a list of the Technology Village Board of Directors who are recommended to continue to serve as the Board for the county-wide incubator program, during the initial one to two years of development: Gerry Hughes, Chair With more than 25 years of Healthcare experience, Gerry is a proven and successful professional services leader within the business software industry with such well-known companies Lawson Software, Oracle, and Healthland. Through direct efforts related to professional consulting service contracts, product sales support, project implementation leadership and oversight, Gerry is known for being a strategist and passionate leader who understands the importance of a goal driven organization to meet operational objectives and maximize organic growth. Gerry is an innovative thinker adept at identifying client and company business needs, making decisions, problem solving, mentoring and initiating company culture change. Dan Stratton, Vice-Chair (Term: 2018-2020) Dan is the President of a private real estate investment company and serves as the Land Manager for the Shakopee Mdewakanton Sioux Community (SMSC). Dan’s duties for the SMSC include conducting real estate negotiations and transactions, managing commercial and residential rental properties and other development initiatives. Dan’s experience has allowed Page 12 him to build relationships in many industries, including health care brokerages, IT development, phone and voice services, etc. Dan is very excited to be involved in the formation and growth of new businesses in Prior Lake and watch that growth benefit the community. Adam Proehl (Term 2018-2020) Adam is a partner at NordicClick Interactive, a cutting-edge Twin Cities Digital Marketing agency. Adam was instrumental in building this 18 person multi-million dollar agency from the ground up and he understands what it takes to make a young company succeed. With a background in marketing and an established network of industry peers, executives, service providers and investors, Adam is an invaluable resource for the Technology Village program. Adam loves seeing individuals who put their soul into their business dream and working with them to grow their technology start-up companies. Adam has spoken at several industry conferences over the last few years including SES, Pubcon, OMS, B2B, eMetrics, and DMA. He is also an instructor at the Online Marketing Institute and the University of San Francisco. Patrick Stroh (Term 2017-2019) Patrick is president of Mercury Business Advisors providing management advisory services in business strategy, innovation and risk management and is author of Business Strategy; Plan, Execute, Win! and Advancing Innovation; Galvanizing, Enabling and Measuring for Innovation Value! Patrick serves on three boards of directors including: global director for the Institute of Management Accountants who serve 80,000 finance professionals worldwide; Technology Village, a business incubator in Prior Lake, and Vail Place, a Minneapolis based agency supporting those with mental illness. Patrick was appointed in 2014 to serve on the COSO Advisory Board to review the update of the 2004 COSO Enterprise Risk Framework. Prior to consulting, he most recently held positions within UnitedHealth Group, including chief strategy & innovation officer, client experience officer, and president consumer health products. Patrick also writes a column entitled Innovation Elixir® for the American City Business Journals covering 43 metro markets across the U.S., is an active member of Rotary Club and is a classically trained chef having studied at Le Cordon Bleu in Minneapolis. Sarah Jones (Term 2017-2019) Sarah has spent most her career in Healthcare technology, and participated in the successful sale of a healthcare technology startup. She currently serves as the Director of Client Success for GreatCall, the leader in connected health for active aging. Her previous experience offers an understanding of how startups work and the challenges they face every day. Sarah is passionate about making Prior Lake an even better place to live and brings a fresh, on-the- ground point of view to the Technology Village Board and pragmatic, strategic guidance to Technology Village program participants. Zach Braid (City of Prior Lake City Council Liaison) Zach is an entrepreneur, investor, and owner of numerous businesses within Prior Lake and the greater Twin Cities. Zach’s business interests are in a variety of industries including; fitness, indoor air quality and environmental services, real estate investing, and franchising. Previously he served on the sales advisory committee at AT&T which is reserved for only the top 1% of sales representatives in the company. He has also been recognized at other Fortune 500 Page 13 companies for sales achievement and contract negotiations. Zach is an advisor to businesses and startup companies and serves as a board member for serval companies including a non- profit. Zach was recently elected to Prior Lake’s City Council in 2017 and serves as a commissioner on Prior Lake’s Economic Development Authority. 5 .3 ADVISORY BOARD In 2015 the Technology Village Board of Directors established an Advisory Board, which currently includes one member, who works with the Board of Directors to advise and mentor program participants. As Phase III is implemented it is recommended the Board explore opportunities to expand the Advisory Board to include representation from other Scott County communities. The Advisory Board will be ex-officio, non-voting members who may not meet the requirements to be a member of the Board of Directors but whose skills would make them a valuable asset to the Board of Directors and its program participants. David Rech, Advisory Board Member Dave has spent over 30 years as an executive in the technology sector focused on selling to the masses. He presently owns his own consulting firm and is actively involved in real estate development and sales. Previously he’s held global executive management positions with The Walt Disney Company, Twentieth Century Fox, Digital River and Globalware Solutions as well as multiple distribution companies. Dave was born and raised in New Prague, MN and his family has been residents of Prior Lake for over 13 years, they also spent 10 years in California. As a member of the board Dave brings sales, marketing, ecommerce, contract management, coaching and SaaS experience to the mix. It would be the intent to consolidate the Advisory Board function into the Scott County CDA Incubator/Accelerator Board or mentors’ role as the Scott County CDA Incubator/Accelerator develops. 5.4 BYLAWS The current Technology Village Bylaws prohibit any official to take action or make a decision that would substantially affect the official’s financial interests or those of an associated business, unless the effect on the official is no greater than on other members of the official’s business classification, profession or occupation. The Bylaws further require that all members of the Board of Directors be either Prior Lake residents or be affiliated with a business located within the City of Prior Lake. Bylaws would need to be amended to allow members of the Board of Directors to be residents or be affiliated with a business located in Scott County. 5.5 SERVICE PROVIDERS / TECHNOLOGY VILLAGE PARTNERS Page 14 The Technology Village Board of Directors has been successful in establishing partnerships with Integra Telecom and the Prior Lake Area Chamber of Commerce who provide their services at a reduced rate to Technology Village program participants. The Board would like to expand the network of service providers to include accounting, legal, human resources, financial, and other local professionals and institutions who will offer their services at a free or reduced rate to program participants. The establishment of this service provider network will be a time consuming task and would be a key initiative of the part-time Executive Director. An established network of service providers will help create awareness of the county-wide incubator/accelerator program and will provide the necessary services that are needed to ensure the success of our program participants. It is recommended the county-wide incubator continue to enhance its relationships with the existing service providers and develop new partnerships with organizations such as Scott County, [which includes Open to Business, First Stop Shop and Economic Gardening], SMSC, SCORE, Chambers of Commerce in Scott County communities, MN DEED, GREATER MSP and the various cities. 6.0 MARKETING AND REBRANDING Marketing – Technology Village has been branded as the Business Accelerator at Prior Lake City Hall. Rebranding the model for a Scott County-wide program is recommended. Themes for satellite office sites versus one name with the community name should be determined by the Board and participating communities. Marketing of the county-wide incubator program is proposed through the Scott County cities, Chambers of Commerce, print and social media. Direct mailers, signage, etc. are also recommended to make residents and entrepreneurs aware of the incubator/accelerator program and spaces available. Continuance of the FAST-TRACK Business Challenge is recommended as a method of raising county-wide awareness, gaining program participants (with winners receiving their first year as a Virtual Participant for free) and developing a pipeline of future participants. 7.0 BUDGET AND FUNDING The City of Prior Lake maintains a separate budget for the management of Technology Village. This includes the purchase of equipment for work stations, maintenance (cleaning), utilities, marketing and promotion. The rent structure for space in Technology Village has also changed over the past six years. The program initially started with funding for equipment and furnishing. In 2017 Technology Village was self-supportive (exclusive of staffing expenses). The Scott County CDA Incubator Program proposes a similar model with each city that wishes to host a facility providing the building space and budgeting for the purchase of equipment, Page 15 work stations, maintenance (cleaning), and utilities. It is recognized the initial year will require capital investments by hosting cities; with the intent to have each satellite facility self-funding as occupancy levels increase. Technology Village lease rates have changed over the years. Lease rates were initially established with an escalating rate scale increasing from $5 per square foot in year one, $10 per square foot the second year and $15 per square foot. In 2016, the City of Prior Lake amended their lease rates to a flat $10 per square foot; which was one of the recommendations of the Greenwood Consulting Group’s Phase III Analysis for Technology Village. Unused Minnesota Investment Funds in various Scott County cities may be a source of revenue for the incubator, if cities are willing to dedicate all or a portion of funds to the endeavor. It is also recommended the establishment of a 501 (c) 3 be explored for a county-wide incubator program. 7 .1 2018 TVBA OPERATING BUDGET Below is the estimated operating budget for 2018 Technology Village operations. Annual rental revenue for the current Prior Lake Technology Village program participants within Prior Lake City Hall is estimated to be $7,820 for 2018. These anticipated revenues will be used to subsidize the costs for Technology Village operations, which are illustrated below. Expenses: Technology Village Accelerator, Prior Lake - 2018 Office Supplies $ 250 Small Equipment - General $ 500 Legal Fees $ 500 Software Design -- Communications $ 2,000 Dues & Subscriptions $ 1,000 Miscellaneous $ 500 Building & Structures -- Furniture & Fixtures -- General Equipment $ 1,250 Business Assistance $ 1,820 Rent Subsidies --__ TOTAL $7,820 7.2 2018 SCOTT COUNTY CDA INCUBATOR OPERATING BUDGET Office Supplies $ Equipment - General $ Legal Fees $ Software Design /Web site $ Page 16 Communications $ Dues & Subscriptions $ Marketing – FAST-TRACK $ Miscellaneous $ Building & Structures $ Furniture & Fixtures $ Business Assistance $ Rent Subsidies --__ TOTAL $TBD No approved budget as of December, 2017. 8.0 SCOTT COUNTY INCUBATOR METRICS The Technology Village Board of Directors has identified seven metrics which are currently being tracked by the Board. The metrics are reported to the City of Prior Lake’s Economic Development Authority on an annual basis, or as requested by the EDA. It is recommended each satellite incubator track the same metrics for consistency. Metrics at this time include:  Program Participant Contacts: Quarterly meetings between existing program participants and Technology Village Board of Director Members.  Program Participants: number of businesses participating in the Technology Village Program.  Employment: number of people currently employed by program participants.  Vacancy/Occupancy Rate: percentage of incubator space under lease agreement.  Total Square Feet Leased: public (city hall) and, if applicable, private office space.  Applications: number of program applications received, reviewed and accepted.  Website Activity: total website hits, website hits by unique IP address and pages visited.  Budget: Budget vs. actual expenditures. 9 .0 PROGRAM PARTICIPANT FOCUS Incubators and business accelerator programs throughout the nation vary in the way they deliver their services, in their organizational structure, and in the types of businesses they serve. Due to space limitations, the skill sets of the Scott County CDA Incubator/Accelerator Board of Directors, the desire to build synergy among the various program participants; it is recommended the initial focus of the county-wide incubator/accelerator be on emerging technology and professional service with a technology focus businesses. For the purposes of the county-wide incubator, emerging technology is defined as any technology product or service that is currently developing or will be developed that may be commercialized and has the ability to alter a business or social environment. The Board feels emerging technology businesses provide the greatest opportunity to positively impact the community and assist with high quality job growth. By focusing on emerging technology and professional services with a technology focus, the board feels confident in its ability to create a collaborative environment where complimentary businesses can work together and share Page 17 information and resources to fully capture the business accelerator concept and provide the greatest opportunity for program success. The focus of this Business Plan will continue to be on emerging technology and professional service businesses with a technology focus; however, program expansion into alternate office locations in the community will allow the board and EDA to provide Technology Village services to non-tech companies with high growth and high employment potential. The Prior Lake city hall office space is proposed to be reserved for tech related companies while other businesses with a focus on other industries will be able to take advantage of this program at an alternate office location. Due to space restrictions, funding limitations, limited staff availability and board consulting time, the board cannot possibly approve each and every program application. The board has and will continue to work to maximize funding provided by each community and the FSS to support those businesses that, in the Board’s judgment, have the greatest opportunity for success and job creation. The ability of a potential program participant to demonstrate their business will most likely achieve the goals of job creation and community investment and therefore address the most pressing public purpose will be the primary factor in determining whether a business is accepted into the county-wide incubator program. 9.1 PROGRAM PARTICIPANT SUCCESS RATE A study done by Inc. magazine and the National Business Incubator Association (NBIA) revealed that 80 percent of new businesses fail within the first five years. In contrast, NBIA member incubators have reported that 87 percent of all firms that have graduated from their incubators are still in business. So far, the Prior Lake Technology Village Business Accelerator success rate of 85% is similar to the other NBIA member incubators. To date, Technology Village has had thirteen program participant businesses and eleven are still in business. 9.2 SELECTION CRITERIA Due to limited funding and limited space options, the Board of Directors cannot accept every business into the program. To determine which business start-ups have a strong potential to succeed and create employment opportunities in the community, the following eligibility requirements were drafted after a review of best practices of existing incubator/accelerator organizations. • The applicant must be in the early stages of business development (first three years). Small companies involved in a significant change in direction or launching a new business product are also eligible to apply. • The applicant must be a for-profit business with growth potential. • The applicant must demonstrate a strong market for products and services. • The applicant must have potential for positive economic impact on the community through: o A technology, product, or service deemed to have a high marketplace potential. Page 18 o A potential for company growth and the associated creation of desirable jobs within Scott County communities. • The applicant must have a product or service that may be commercialized within the time set forth in the lease agreement. • The applicant must plan to remain headquartered within Scott County. • The applicant must have a written description of the business or a draft business plan. • The applicant must show the ability to pay rent while they develop positive cash flow. • The applicant must be willing to accept advice and guidance from the Board of Directors. • The applicant business must be willing to take advice from the professional network and/or the Executive Director. • The applicant must desire to take advantage of and be able to benefit from the value- added services and guidance provided through the incubator/accelerator program. 9.3 PROJECTED TVBA PROGRAM DEMAND It is very difficult to estimate the program’s financial needs in 2018 because it is not known how many program participants will be accepted into the program, when they will be accepted, their space needs or number of employees per organization. For the purpose of these budget assumptions, the Board anticipates two new incubator/accelerator program participants will be identified in 2018. The Board anticipated one two employee business and one three employee business. Assuming two new Phase III participants, one new satellite space will be required, unless all participants chose the Virtual Program option. 9.4 TVBA PROGRAM PARTICIPANT FORECAST The Board of Directors is working on the assumption that the two existing program participants will continue occupying space per their lease agreements and participation contracts. The board anticipates no additional participants will be identified to occupy space within city hall due to the full capacity as of 9/1/2017. The board anticipates two new Technology Village program participants, will be identified in 2018 to occupy Phase III space in another satellite office. 10.0 SCOTT COUNTY ‘VIRTUAL’ ACCELERATOR PROGRAM The TVBA Board of Directors developed a ‘virtual’ participant program in 2015. The virtual program is designed to provide support to emerging technology and professional service home- based businesses, with a technology focus, located in Scott County which are not physically located in the designated incubator space. The virtual program provides an opportunity for businesses to participate and benefit from the Business Incubator/Accelerator program without maintaining a commercial office location. Page 19 For a small monthly fee of $50, virtual program participants are eligible to receive the following benefits, where available: Page 20 Page 21 Exhibit I Glossary of Terms Accelerator – According to Business News Daily, Business Accelerators are very similar to Business Incubators but may include investments into the companies. In addition, while a business in an incubator may spend three years in a program, a business in an accelerator typically has a shorter time frame for participation. Co-working Space – A “shared working environment, often an office, and independent activity. Unlike in a typical office environment, those co-working are usually not employed by the same organization. Typically it is attractive to work-at-home professionals, independent contractors, or people who travel frequently who end up working in relative isolation.” (Wikipedia.org) Educational programming is generally not provided as a part of co-working space. Economic Development Authority – A local government authority, established in accordance with M.S. 469.090 to 469.108, for the purpose of facilitating economic development and redevelopment (and possible housing redevelopment) functions. Economic Development Commission – An advisory board, to a City Council, with the responsibility to promote and expand economic development activities. FAST-TRACK Challenge – A business challenge in Scott County, MN that allows entrepreneurs to pitch their business ideas to a panel of judges, with the goal to receive financial and business service assistance to launch or fast-track their business idea or product. Incubator - According to the National Business Incubator Association (NBIA), an incubator is “a business support process that accelerates the successful development of startup and fledgling companies by providing entrepreneurs with an array of targeted resources and services. These services are usually developed or orchestrated by incubator management and offered both in the business incubator and through its network of contacts. Open to Business Program – A business consultation services provided to entrepreneurs as well as established businesses in Scott County as a program offered by the MCCD and funded by the Scott County Community Development Agencies’ First Stop Shop (FSS). SBDC – The Small Business Development Center is a partnership between the U.S. Small Business Administration (SBA) and typically a local college or university designed to help foster small businesses by providing educational resources to business owners and those looking to start a business. (Source: Investopedia) Page 22 Exhibit II Technology Village Phase III Program Analysis, completed by Greenwood Consulting Group, Inc. Page 23 Exhibit III Sample Agreement between Participating Cities (with physical satellite sites) and the Scott County CDA/FSS to be developed