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HomeMy WebLinkAbout05 24 2018 BEC Agenda Packet FULL Business Engagement Committee Meeting Agenda Thursday, May 24, 2018 7:30 a.m. City Hall, Wagon Bridge Conference Room Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com 1. Call to Order 2. Approval of Meeting Minutes a. April 26, 2018 3. Old Business a. Marketing/Communication Material Update (verbal report) 4. New Business a. BEC Liaison Visits i. Street Construction Handouts 5. Other Business a. EDA Meeting Update i. EDA Business Plan b. Residential and Commercial Activity Update c. Staff Update i. Joint EDA/BEC Meeting Reminder - Monday, June 11, 2018 d. Member Ideas/Recommendations 6. Next Regular Meeting Date a. Thursday, June 28, 2018 7. Adjourn 1 4646 Dakota Street SE Prior Lake, MN 55372 CITY OF PRIOR LAKE, MINNESOTA BUSINESS ENGAGEMENT COMMITTEE MEETING MINUTES – April 26, 2018 1. Call to Order The meeting was called to order at 7:31 a.m. in the Wagon Bridge Conference Room at Prior Lake City Hall. Members present: Kim Prchal, Stephanie Carroll, Wade Larson, Tim Marco, Ron Martin and Sandi Fleck. Staff present: Casey McCabe and Amanda Schwabe. Guest present: Tommy Hesch. 2. Approval of Meeting Minutes a. March 22, 2018 MOTION BY CARROLL and SECOND BY MARTIN to approve the March 22, 2018 meeting minutes. Motion adopted unanimously. 3. Old Business a. Marketing/Communication Material Update Schwabe reviewed the proposed enhancements to the existing City of Prior Lake website including the creation of a new page and supporting information related to economic development MOTION BY MARTIN and SECOND BY CARROLL to recommend expanding the existing economic development information on the City of Prior Lake website as proposed. Motion adopted unanimously. 4. New Business a. BEC Liaison Visits - Timing & Topics Prchal provided a brief overview of the commercial liaison area visit program. McCabe explained that one of the benefits of the liaison area visit program is to provide information to businesses in the areas on area projects. Discussion followed regarding topics for 2018 commercial liaison topics including, but not limited to, transportation improvements. Prchal suggested development of a one to two-page construction project handout/flyer for use during commercial liaison visits. Carrol suggested incorporating information on a flyer on how a business owner can keep updated on what’s happening in Prior lake. Fleck shared that the Chamber of Commerce is hosting an event on May 16, 2018 to share ideas and discuss how to thrive during road construction projects. McCabe stated that the City Council has requested an RFP be assembled for a communication facilitator to assist with keeping the public informed with weekly construction update. Fleck offered to provide a link from the Chamber of Commerce to a flyer once developed. Staff will work with communication facilitator once identified to get more information regarding the communication materials that will be available for liaison visits. b. BEC Bylaws McCabe provided an update regarding the BEC Bylaws. He explained that the City Attorney reviewed the bylaws and simplified them. The City Council has already approved the bylaws; however, changes can still be made if needed. McCabe provided clarifications on Section 203 and Section 210 regarding composition of the membership. 5. Other Business a. EDA Meeting Update MCCABE provided an overview of the agenda topics from the April 9th EDA meeting. b. Residential and Commercial Activity Update BEC members received a copy of the residential and commercial activity update as of March 31, 2018. c. Staff Update MCCABE requested available dates for the next joint EDA/BEC meeting. It was determined that Jun 11th is the preferred date and topic will be focused on what the City of Prior Lake can do during road construction projects to promote business activity. McCabe informed the committee that Mayor Briggs suggested inviting the owners of Boathouse Brewery to an upcoming meeting to discuss their experience with opening a new business in Prior Lake. BEC members agreed that inviting Boathouse Brewery to a future meeting was a good idea. d. Member Ideas/Recommendations None 6. Next Meeting Date. The next regular meeting of the BEC will be on Thursday, May 24, 2018 at 7:30 a.m. 7. Adjourn. MOTION BY LARSON and SECOND BY PRCHAL to adjourn the meeting. Motion adopted unanimously. The meeting adjourned at 8:57 a.m. Submitted by: Amanda Schwabe 4646 Dakota Street SE Prior Lake, MN 55372 BUSINESS ENGAGEMENT COMMITTEE REPORT MEETING DATE: May 24, 2018 AGENDA #: 4.a. PREPARED BY: Casey McCabe, Community Development Director AGENDA ITEM: BEC LIAISON VISITS – STREET CONSTRUCTION HANDOUTS DISCUSSION: Introduction The purpose of this agenda item is to provide BEC liaisons with additional information related to street construction projects as they begin 2018 commercial liaison area visits. History One of the committee’s duties outlined in the BEC Bylaws is, “To serve as a liaison between city government and the community through interaction with business leaders and community residents.” To help accomplish this, the BEC has previously assigned some of its members to act as a liaison to five specific commercial and industrial areas of the community. The role of the BEC liaison is to help communicate City and BEC activities with business owners and provide an additional point of contact for their questions and concerns. Current Circumstances One of the BEC’s goals for 2018 is to, “Continue to establish and define the commercial liaison program.” The BEC commercial area liaison assignments for the commercial areas of the commu- nity are below.  Downtown Area – Prchal / Petschl  Deerfield Business Park / Welcome Avenue Industrial Area – Carroll  Commerce Avenue / Fountain Hills Area – Larson / Tande  Village Commerce / South Lake Village Area – Martin / Briggs  Gateway Area – Marco On May 16th the Prior Lake Chamber hosted their Monthly Membership Meeting and the topic was ‘How to Thrive Through Construction’. The attached handouts were provided to the Chamber Mem- bers in attendance. The informational handouts would be valuable to share with all businesses in our commercial areas. Conclusion The attached handouts have been added to the BEC Commercial Area Liaison folder on Dropbox. City staff will print copies of the attachments for your liaison visits upon request. FINANCIAL IMPACT: None. ALTERNATIVES: ATTACHMENTS: 1. Discussion Only 1. Street Construction Handouts ROAD CONSTRUCTION ALERTS All road construction information can be found on the City website www.cityofpriorlake.com/streetprojects All Scott County projects: www.ScottCountyMN.gov/roads CH 42/TH 13 Project: http://scottcountymn.gov/1766/CH- Notify Me (Alerts): http://scottcountymn.gov/list.aspx 42-and-TH-13-Intersection-Improvement All state projects: http://www.dot.state.mn.us/roadwork/current.html TH 13/CH 21 Prior Lake Downtown Improvement www.movingforward13-21.com 2 Contents A workbook filled with tools to help Minnesota businesses thrive during road construction Introduction.................................................................................................... 3 Planning ahead.............................................................................................. 4 Staying informed............................................................................................ 5 Handling traffic ............................................................................................... 6 Reducing traffic.............................................................................................. 8 Keeping customers informed.......................................................................... 9 Tips for businesses: how to survive road construction................................... 10 Worksheet: CHECKLIST & TIMELINE for business owners ........................... 11 Key contacts................................................................................................ 12 Conclusion................................................................................................... 12 Minnesota Department of Transportation 3 Introduction A cartoonist once portrayed a lost tourist asking a local resident for directions, to which the laid back homeowner replied, “Mister, you can’t get there from here.” Little did the cartoonist realize that “You can’t get there from here” would become an idiom that’s repeated every time a driver is lost, confused, or detoured by highway construction. The cartoonist did no favor for businesses that rely on customers having an unimpeded path to their doors. “You can’t get there from here” became the convenient excuse for shoppers to take their business elsewhere. You can get there from here “You can’t get there from here” should be stripped from our lexicon. It should be replaced by a can-do attitude epitomized by the children’s story “The Little Train That Could.” It would be helpful to recall the courageous attitude of the Pilgrims and other immigrants who crossed treacherous oceans to get here or pioneers who pushed westward across mountains and plains to find new homes in the West or Midwest. They were not people easily intimidated by challenge; they wouldn’t be intimidated by today’s orange barrels at road construction sites. The barrels would be welcome beacons to safely guide them to their destinations. Deal with perceptions Now, the reality check: Without a strong motivation, it is human nature to avoid orange barrels, barricades, Road Closed signs, big trucks, earthmovers and other indications of dusty, dirty construction zones. The perception that “you can’t get there from here” may be wrong. But this is a case when perception is reality, and our challenge is to deal with the perception and to keep customers coming. The Minnesota Department of Transportation (Mn/DOT) recognizes that businesses located in a work zone have special needs. It’s critical that their customers have access to business and that they continue to patronize the businesses, in spite of any road work inconvenience. Mn/DOT helps these businesses in a variety of ways and tries to help businesses to help themselves. This workbook is a compilation of techniques that have been used successfully in several Minnesota communities and in the state of Wisconsin. It includes samples of what others have done, and descriptions of their efforts. It is offered to business and community leaders as an idea source as they plan for road construction closer to home. This workbook includes an array of ideas communities might implement, worksheets to follow progress, and a timeline to check off accomplishments as they are completed. 4 Planning ahead Many highway construction projects have a design phase of five or more years. This is the time when Mn/DOT engineers, in cooperation with local government officials, plan the project, define the scope of what will be accomplished, study the alternatives available, evaluate the impacts on the community or neighborhood, and design the plans that a contractor will need to finish the improvement. Occasionally, Mn/DOT hires consulting engineering firms to design the improvement, and sometimes to manage its construction. Throughout this design phase, Mn/DOT holds periodic meetings with local officials and citizens to hear their suggestions and concerns. By the time the construction crew rolls on-site, all of the design decisions have been made. It's important, therefore, for the business community to get involved early in the design phase and stay involved during construction. Getting organized The key to survival is bringing businesses and the affected stakeholders together early and working together to survive economically while the infrastructure is improved. A local chamber of commerce or business association often becomes the focal point as business people get organized. A leader can be identified to represent the business community to keep business concerns in mind, to channel questions or suggestions to Mn/DOT and to carry information back to the businesses. Sometimes, a smaller group or committee is formed to specifically represent those who are most affected by the construction. Working cooperatively as a group has advantages. Together, the business community has the synergy to accomplish more than its individual members could accomplish on their own. Resources and ideas can be pooled for the maximum benefit. Working together saves time and money in the long run. 5 Staying informed Keeping the public informed about highway projects and their impacts on citizens’ lives is a key to public understanding, and Mn/DOT uses a variety of techniques to spread the message. It’s important for businesses, as well as citizens, to understand why a highway or bridge needs to be rebuilt, the alternative solutions that were evaluated, the efforts to ensure that negative impacts are kept to a minimum, and why there may be some inconvenience during repairs. Businesses play a dual role in road construction: first as citizens impacted by road work; second working with Mn/DOT to keep their customers coming and minimizing inconvenience for customers and drivers. Businesses and Mn/DOT are truly “in this together,” united in recognizing the need for road improvements and the long-term benefits they will share when the project is completed, and working together to minimize any negative consequences. Businesses, not unlike the general public, are more likely to endorse highway repairs when they have all the facts early enough so they can participate in the decisions, offer suggestions and plan ahead. When they are involved early, businesses tend to assume some ownership for the improvement and more optimistically face the challenges during construction. How to do it As a business person, you can stay informed by: ƒAttending public meetings during the design phase and other meetings just prior to construction. ƒInviting Mn/DOT representatives to discuss the project at your business association or group meetings. ƒSharing what you’ve learned with other business people, using letters, newsletters, ads and other techniques to make the community more aware of what’s ahead. ƒStaying in touch with the Mn/DOT project manager, once construction begins. Learn the project manager’s name and phone number and where the project field office is located. ƒEstablishing a line of communications. Call if you have questions. You may identify one of your members as the point person to collect questions and concerns, to take them to the project manager, and to bring back responses and other information. When warranted, the point person may wish to attend periodic meetings between the project manager and the contractors. ƒIdentifying key business people to whom Mn/DOT can mail or fax news releases and project updates. 6 Handling traffic Ideally, a contractor can repair or rebuild a road more quickly and less expensively if all traffic is removed during the work. But that is not feasible many times if Mn/DOT is to maintain access to businesses and minimize the impacts on them or if an adequate detour is not available. When front access is critical, we accommodate traffic in two ways: Under construction but open to traffic This alternative is used on high-volume highways like the Interstate or on multilane roads where one lane can be rebuilt while traffic is restricted on the other, or for resurfacing on low-volume roads where suitable detours are not available and the project can be done one lane at a time with signs or flag persons to direct traffic. Road closed to through traffic, open to local traffic “Through traffic” means those vehicles that don’t have an origin or destination inside the work zone. Detour signs direct them to an alternate route around the work zone. We usually keep the detour length to a minimum, making certain the road is in good condition and capable of safely handling heavy traffic, including trucks. An important consideration is whether travelers can follow the detour easily. When a road is closed to through traffic, the “through traffic” driver who does not have an origin or a destination within the work zone is subject to a traffic ticket. “Local traffic” means those drivers who do have an origin or destination within the work zone. This includes people who need access to their homes, their visitors, businesses making deliveries or pickups, school buses, emergency vehicles, business owners, their customers and employees. When someone needs access in the work zone, we ask them to minimize their use of the road. This can be done by using side roads that intersect close to the destination. The reason we restrict local traffic is because the work zone may be filled with dozens of trucks, earthmovers and other equipment, all moving in different directions. When local traffic is heavy, the contractor needs to hire flag persons to direct traffic and prevent collisions between drivers’ vehicles and construction equipment. The heavier the traffic, the greater the danger of collisions, delays for everyone, and cost. 7 Handling traffic While the contractor is required to maintain a safe and adequate path on which local traffic can drive, the roadway may be bumpy, dusty, or muddy. Occasionally, the contractor may provide a temporary path on gravel adjacent to the construction. Sometimes, the road may be temporarily closed to all traffic and only maintained for emergency vehicles. It may be a few hours or a few days, and Mn/DOT works hard to keep that time as short as possible. Important deliveries can be scheduled with the contractor and the project manager. Concrete pavement requires a “cure” time of three to seven days, depending on the amount of cement in the concrete. If access is given to businesses during this time period, it is necessary to provide a “gap” in the pavement. Such gaps require the paving contractor to stop operations, move the paver ahead and restart the entire operation. The contractor must then fill the gaps at a later date. Pavement gaps delay project completion, compromise ride quality and increase costs. Businesses may be approached by the paving contractor to work with them to eliminate the need for paving gaps. Without paving gaps, contractors can pave nearly a mile a day. With gaps, the production can be cut in half or worse. That means overall construction will take longer. The goal of everyone is to get the project completed as quickly as possible, at a reasonable cost. Businesses may consider closing shop for a few days to enable earlier project completion. Or they may share gaps with other businesses to reduce the number of gaps. 8 Reducing traffic Businesses and Mn/DOT walk a fine line together, seeking to reduce traffic on the highway under construction so that contractors can complete their work efficiently, quickly and safely, while maintaining the traffic stream so that customers and employees can reach the businesses as easily as possible. When four lanes are reduced to two lanes, or when two lanes are narrowed to one, it becomes essential to reduce traffic by a significant amount. Even when the highway capacity has been cut in half, diverting 10- 20 percent of the traffic to other routes can keep the traffic stream workable for both drivers and the contractor. That permits the remaining 80-90 percent of the traffic to flow through the work zone at a reasonable speed and for drivers to reach businesses, industries, and residences along the route. Traffic is like an overflowing river: it takes the path of least resistance. It may follow a marked detour route. But most local traffic spills onto nearby streets and roads with which drivers are familiar, each driver finding his or her own special way to circumvent construction. When the highway is being reconstructed “under traffic,” Mn/DOT suggests drivers use alternate routes. How businesses can help reduce traffic Here is a checklist of ways in which business can help reduce traffic jams during construction: ‰Tell your customers and employees about traffic restrictions. Distribute brochures, flyers and paycheck stuffers. Inserts with regular customer billings can be very effective. ‰Help your suppliers and their truck drivers identify alternate routes to your business or industry. Do this before construction starts. ‰Consider routes for your outgoing vehicles to avoid the work zone or schedule shipments at nonpeak times. ‰Establish a company-sponsored carpool or vanpool program, or encourage employees to use existing programs. ‰Look into starting a company shuttle to take employees to and from park-and- ride lots at locations outside the construction area. ‰Investigate flextime or four-day work weeks that reduce employee travel during rush hours from 7 to 9 a.m. and 3 to 6 p.m. weekdays. ‰Consider telecommuting or other strategies that allow employees to work at home. 9 Keeping customers informed Drivers who are well informed about road construction tend to be “happy campers, inconvenience notwithstanding. They under- stand why the improvement is desirable. They know about construction before they leave home, rather than being surprised by the sudden appearance of barricades, orange barrels, and Road Closed signs. They’ve been told about roads that are closed or restricted; they follow and sense the construction progress being made; and they've given some thought to other ways around construction either by studying the map or checking out possible alternate routes on their own rather than fuming in frustration as their vehicles sit in a long line of stop-and-go traffic. Mn/DOT has stepped up the flow of road work information to the public. We use changeable electronic message signs to advise drivers when delays are expected and to safely steer them through or around construction zones. Communications professionals use a variety of techniques to inform drivers about projects, their value to the public, and traffic detours or restrictions that might affect the public. News releases provide valuable background information to news media. News stories and interviews with TV, radio and newspaper reporters can be set up. Major projects with significant traffic impacts warrant brochures, generally with maps, that clarify the work ahead, detours, and alternate routes. Telephone recordings are used to bring inquiring drivers up to date. And the Public Affairs Coordinator in each of Mn/DOT’s eight districts statewide is a convenient, available information source for drivers needing help. How businesses can keep the customers coming: ƒMn/DOT may permit businesses to have directional signs in construction zone. ƒContact the project manager to make certain that the sign you contemplate complies with Mn/DOT guidelines. ƒUse simple maps to tell your customers about the best alternate routes to reach your business. Post them on your doors and bulletin boards, insert them into billings and other mailings and distribute them to your customers. Be especially mindful of customers who come a long distance and may be unfamiliar with local streets and roads. ƒLet the public know that you’re open for business. Develop ads for newspaper, radio or television. Pool your resources for group advertising. Advertising cooperatively can be very cost-effective. Brainstorm for innovative ideas to promote your businesses. 10 Tips for businesses: how to survive road construction Here are some basic actions business owners can take to help survive roadway construction: ƒPlan ahead as much as possible; get involved early. A year is not too far ahead to begin organizing and planning. ƒForm an alliance with other businesses in your locale. ƒAttend public meetings to stay informed. Have knowledge of the project. Contact Minnesota Department of Transportation to voice your concerns. ƒHold frequent and regular meetings with other businesses for support and strategies. Write down your fears and questions for discussion. ƒPool resources to purchase group advertising. ƒHold a pre-construction meeting with the Mn/DOT project manager and contractor to find out how long the project will take, what to expect, i.e. dirt, mud, ground shaking, etc. ƒMeet the on-site project manager. Keep his/her telephone number in a handy place. ƒEstablish a line of communication with the project manager. Project managers coordinate with the contractor. Brainstorm for innovative ideas to promote your business and to communicate with customers: ƒHold events prior to construction start-up to draw attention to the area. ƒWork with the Mn/DOT Public Affairs Coordinator to plan groundbreaking activities. ƒDesign a logo for use by all affected merchants during the construction period. ƒHold special promotions such as free hot dogs and pop, or a one-day sign-up in parking lot for a free vacation. ƒPrint placemat advertisements. ƒPlace advertisements in outlying newspapers. ƒPlan hard-hat promotions—some for sale, some as giveaways. ƒSell hard-hat lunches to go. ƒSchedule a grand finale—work with the Mn/DOT Public Affairs Coordinator to plan ribbon cutting ceremonies; plan street dance, t-shirts, prizes. ƒ_______________________________ _______________________________ ƒ_______________________________ _______________________________ 11 ¥¥Worksheet CHECKLIST & TIMELINE for business owners ‰Form an association of businesses that will be affected by the construction project. Let the Mn/DOT district office know the name and address of your organization’s primary contacts. ‰Attend first meeting with Mn/DOT project development staff responsible for project design. ‰Discuss project schedule, question and answer session. ‰Form committees for advertising, promotions, signing, special events, etc. Committees: Members: ‰Develop and implement promotional campaign. Adopt theme. Delegated to:_________________________________ Due by:__/__/__ Design and produce newspaper, television and radio advertisements. Delegated to:_________________________________ Due by:__/__/__ Brainstorm and produce additional promotional materials. Delegated to:_________________________________ Due by:__/__/__ Plan special events. Delegated to:_________________________________ Due by:__/__/__ TASK - 3 to 6 months ahead ‰Attend second meeting with Mn/DOT staff. ‰Discuss project schedule, question and answer session. ‰Meet Mn/DOT project manager, who is responsible for construction, and with the prime contractor. TASK - 1 month ahead ‰Meet Mn/DOT project manager and contractor. ‰Discuss project schedule. ‰Construct roadside signs needed to guide drivers to parking and business accesses. Arrange for erection of signs to coincide with the start of any detour. ‰Distribute final promotional materials. Delegated to:_________________________________ Due by:__/__/__ TASK ‰Attend construction business meetings held throughout the duration of the project. ‰Continue committee work. 12 Contact Us Central Minnesota – MnDOT District 3 Contact JP Gallach at 218-828-5706, or you may peruse key contacts on our website at www.mndot.gov/d3. Stay Informed and Involved Statewide roadwork: mndot.gov/roadwork/current Central Mn roadwork, projects: mndot.gov/d3/construct.html Central Mn twitter news feed: Twitter.com/MnDOTcentral Subscribe to project email updates: www.mndot.gov Conclusion We hope this workbook helps you to keep your business, and the other businesses in the construction zone, healthy and thriving throughout the construction period. Your customers will appreciate your special attention to them and will keep coming back for years to come. When the project is done, both you and your customers will look at the new road or bridge as a definite improvement. The temporary inconvenience will be just that —temporary. But the new road or bridge will last. 4646 Dakota Street SE Prior Lake, MN 55372 BUSINESS ENGAGEMENT COMMITTEE REPORT MEETING DATE: May 24, 2018 AGENDA #: 5.a. PREPARED BY: Casey McCabe, Community Development Director AGENDA ITEM: EDA MEETING UPDATE DISCUSSION: Introduction The EDA held a special meeting on April 30, 2018 to discuss the EDA 2018 Business Plan and a funding proposal for the City Council. Conclusion Updates of EDA activity related to the above listed topic, including the EDA Business Plan, will be presented to the BEC during their May 24th meeting. ISSUES: Update Only. FINANCIAL IMPACT: None. ALTERNATIVES: ATTACHMENT: Update Only. 1. EDA Business Plan Page 1 of 7 PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY (EDA) 2018 BUSINESS PLAN April 30, 2018 EDA Commissioners: EDA Staff: David Chromy (President) Frank Boyles, Executive Director Annie Sheehan-Kerber (Vice-President) Casey McCabe Zach Braid Amanda Schwabe Marie Boucher-Hoese Cathy Erickson, Treasurer Kirt Briggs Purpose The City of Prior Lake is fortunate to have an active and entrepreneurial entity, known as the Economic Development Authority (EDA), focused on creating a desirable environment to attract and grow businesses which will expand and diversify the city’s tax base and employment opportunities. This business plan describes the framework for the EDA to accomplish the city’s economic development initiatives. The mission of the City of Prior Lake, as stated in 2040 Vision and Strategic Plan, “is to enhance the quality of life for citizens by providing quality services which result in a safe and healthy community; recreation and leisure opportunities; preservation and effective use of lakes, parks and other natural resources; economic vitality; and the promotion of partnerships, volunteerism and civic pride.” This business plan establishes guidelines and criteria regarding the use of EDA Special Revenue Fund to achieve economic development initiatives of the City of Prior Lake and objectives of the EDA. These guidelines and criteria are in addition to the requirements and limitations set forth by provisions of Minnesota Statute 116J.993 – 116J.995 (“MN Business Subsidy Law”) and City of Prior Lake policies and guidelines with respect to any form of subsidy. Prior Lake encourages thoughtful and orderly economic and community development to provide retail and services for our residents, create employment opportunities through retention and expansion of existing businesses and attraction of new businesses , ensure high quality residential and business development, and build a strong and diverse tax base. The fundamental purpose of this plan is to guide the EDA as it develops and implements strategic initiatives in 2018 and beyond to 2020, 2030 and 2040, and to encourage desirable development or redevelopment within our community that may not otherwise occur. Page 2 of 7 EDA Purpose (Bylaws) The business of the Economic Development Authority shall include but not be limited to promoting growth, development and redevelopment of retail, commercial and industrial properties in Prior Lake; diversifying the City’s tax base; providing tools and incentives to achieve the Economic and Community Development Vision Element in the City‘s 2040 Vision and Strategic Plan; and providing an incubator to generate ideas and initiatives to support economic growth and vitality. EDA 2017 Accomplishments & 2018 Goals 2017 EDA Accomplishments • Commercial/Industrial Development o The EDA enjoyed an extremely successful year of commercial/industrial development, in which Prior Lake saw the opening of the Grainwood Senior Living facility and issuance of building permits for the construction of the Prior Lake Revival project, Select Space Storage, Blahnik Law Office, Universal Motors, SDDI Signs, Boathouse Brothers Brewery, Port City Bakery, as well as recommending a redevelopment assistance agreement for PLate on Main. • Communication and Collaboration o The EDA emphasized communication and collaboration between committees by holding joint meetings with the BEC, Planning Commission, and City Council related to land use, 2040 Comprehensive Plan updates and the appropriate use of business incentives. • Land Use Related Activities o Assisted the Planning Commission and City staff in the review and update of the Land Use and Housing chapters of the 2040 Comprehensive Plan update which resulted in the removal of the 50% building addition restriction in the Transit ional Town Center Use District and identification of key areas for future commercial growth. 2018 EDA Goals • Work with downtown stakeholders (residents, current and potential business owners, etc.) toward an integrated construction and financing plan for streetscaping and building construction/remodeling to maintain and encourage the economic vitality of downtown businesses through the TH13/CR21 corridor improvement project and facilitate future downtown development. • Establish a process and plan to target resources for economic opportunities that provide significant benefits to Prior Lake, including those that may include property acquisition and direct support to commercial and industrial development. • Continue to guide the Business Engagement Committee and support the Technology Village Board of Directors as they implement the recommendations of the Phase II.5 Technology Village Business Accelerator Plan, including expansion opportunities within Scott County. • Explore opportunities to identify, assist and encourage commercial and industrial development along the CH21 and CH42 commercial corridors. Page 3 of 7 • Conduct an annual meeting each with the Scott County CDA First Stop Shop, the Prior Lake City Council, the Prior Lake Planning Commission and Technology Village Board of Directors as well as quarterly meetings with the Business Engagement Committee to promote partnerships and collaboration. 2040 Vision & Strategic Plan Goals Short and Mid Term goals identified under the Economic and Community Development Strategic Element of the 2040 Vision and Strategic Plan include: 1. SHORT: Complete update of Orderly Annexation Agreement or implement agreement “as is.” 2. SHORT: Complete graphic of Downtown based upon the Downtown Development Guide to communicate anticipated evolution of the downtown area. 3. SHORT: Take actions to encourage tourism in accordance with River South objectives. 4. MID: Complete studies to update all development fees contemporaneously with 2040 Comprehensive Plan Update. 5. MID: Facilitate concentrated commercial growth at County Road 13 / County Road 42, County Road 21 / County Road 42, (Jeffers Waterfront), County Road 21/Highway 13 (South Lake Village), Adelmann /County Road 21 (Deerfield Business Park) and County Road 42/ Pike Lake (Vierling Property). 6. MID: Complete update of comprehensive plan utilizing staff resources for land use and SCALE resources for transportation. 7. MID: Repave Colorado Street parking lot in conjunction with TH13/CR21/Main/Arcadia improvement project. 8. MID: Address on-street parking issues in Charlie’s on Prior area. 9. MID: Incorporate enhanced parking facilities where they are demonstrated to be necessary to facilitate commercial development in the community. 10. MID: Extend Arcadia Street as primary downtown southern access and improve wetland trails together with the watershed and/or UMN upon development of Gross Property 2018 EDA Initiatives and Implementation Plan The following actions have been identified by the EDA as 2018 key initiatives . All initiatives work together to support a business community that is focused on technology, job creation, diversification of tax base and Prior Lake’s strengths in entertainment and recreation. 1. Special Revenue Fund Economic Development Initiatives. Periodically the EDA will request that the City Council allocate funds from the Prior Lake General Fund (Fund 101) to the EDA Special Revenue Fund (Fund 240). The EDA will utilize funds from the EDA Special Revenue Fund to accomplish the following economic development initiatives in 2018 and beyond. Initiatives include but are not limited to: i) property acquisition; ii) storefront rehabilitation; iii) direction and promotional signage such as banner poles, visitor kiosks, or wayfinding signage; iv) economic development and redevelopment loans and incentives; v) new business attraction through website enhancements and marketing; vi) efforts to facilitate commercial development and redevelopment; and vii) enhancing the character of commercial areas. Page 4 of 7 2. Technology Village Business Accelerator. Technology Village opened in January 2013 on the main floor of Prior Lake City Hall within a previously underutilized office space of approximately 2,000 square feet. Initiating the program in the existing city hall building helped minimize start-up costs and allowed for the shared use of services already in place serving City of Prior Lake staff, including; internet, phone, meeting space, cafeteria/break room, etc. The office space within city hall also provided the added locational benefit of allowing the program participants to be near city staff who administer the day-to-day program operations. The Technology Village Board of Directors developed a ‘virtual’ participant program in 2016. The virtual program is designed to provide support to emerging technology and professional service businesses located in Prior Lake, or throughout Scott County, which are not physically located in the designated Technology Village space. The virtual program provides an opportunity for businesses, which may be home -based or are already established in an office space, to participate and benefit from the Technology Vi llage Business Accelerator program. In 2018, the EDA will focus on shifting the Technology Village program from a City of Prior Lake program into a county-wide model, which will be managed by First Stop Shop staff within the Scott County CDA. 3. Targeted Areas for Development. The EDA will help facilitate commercial development in three targeted areas around highway intersections, including: (i) CH 21 / TH 13; (ii) CH 21 / CH 42; and (iii) CH 42 / TH 13. It will also help facilitate full development of the remaining lots within the 50-acre Deerfield Business Park and maximize development potential within the 40-acre Welcome Industrial Park. Redevelopment opportunities also exist in certain locations, such as Welcome Avenue and downtown Prior Lake. 4. Downtown Parking. In 2015, SRF Consulting Group completed a Downtown Parking Analysis. The purpose of the study was to build upon previous parking studies by identifying downtown sites that will best accommodate future public parking demand, including structured parking facilities. Prior Lake is fortunate to not only have very little downtown vacancy, but the downtow n is also seeing some significant commercial development and redevelopment activity. With the increased activity and occupied storefronts, convenient municipal parking stalls will become more difficult to locate. The EDA will review the Downtown Parking Analysis and determine which short, mid and long-term implementation steps should be pursued. 5. Commercial Activity During Construction. Prior Lake will see some significant road improvement projects in 2018 and 2019 along key transportation networks. The EDA will work with commercial businesses and stakeholders in these areas, as well as the Chamber of Commerce, Business Engagement Committee and other groups to maintain and encourage the economic vitality of our businesses before, during and after these construction projects. Page 5 of 7 Unique Challenges for Prior Lake 1. Historical Investments in Commercial/Industrial Development. The city has invested much of its public resources in supporting a healthy and vibrant residential lake community, which has been very successful. Residential property values are well above average as a result, but the total market value of commercial/industrial (C/I) property is below average. For example, Prior Lake’s payable 2019 estimated market value for commercial/industrial property is 3.55% of total. This amount is low when compared to commercial/industrial values in Savage at 12.72% or Shakopee at 24.72% of total. 2. Direct Access to Major Principal Arterial Transportation Systems . Prior Lake’s location outside of the metro’s major highway system results in limited access to Interstate, US and State Highways. Although Prior Lake has convenient access to the major transportation corridors, businesses look elsewhere when highway access a top priority for them. In addition, rail service is absent in Prior Lake. Important improvements have occurred recently on County Highway 21 north and east, resulting in much better access to and from Prior Lake and additional transportation improvements are planned along Hwy 13 and CH21 which will improve access. Prior Lake does have access to a high -speed fiber network which the city has taken advantage of through a cooperative project with Integra. Through this effort, fiber was made available to the city’s various commercial/industrial areas to help compensate for the lack of highway and rail infrastructure. 3. Pad-Ready Commercial/Industrial Sites. Prior Lake has a healthy overall supply of property guided for commercial, business park, and industrial development. However, not all of this land is ‘pad-ready’ for development. Prior Lake has approximately 56 acres of vacant commercial property with 36 acres being pad-ready or near pad-ready (64%). The city has approximately 50 acres of vacant business park/industrial property with 25 acres being pad- ready or near pad-ready (50%). This land supply is insufficient to accommodate the increased commercial and industrial development anticipated in the Commercial and Industrial Demand Analysis, completed by Maxfield Research. The Comprehensive Land Use Plan, which is currently being drafted by city staff, will dedicate additional commercial and industrial land for future development. 4. Direct Business Connection or Link to the Lakes. Prior Lake is known for its fourteen lakes, parks and many recreational opportunities, which are extremely important assets for city residents. However, there is very little connection between these assets and the business community. With one restaurant and few commercial marinas located here, Prior Lake could benefit from additional commercial opportunities related to its lakes and recreation. Summary of Funding Needs and Resources Budget Premise: The following key premises are accepted by the EDA for future budgeting: ➢ Support one-half of the Community Development Director position. ➢ Support one-half of a City Planner position. Page 6 of 7 ➢ Provide other necessary operational expense support (e.g., legal, communications, training). ➢ Utilize professional services to move certain initiatives forward to implementation. ➢ Maintain a reserve balance allowing the EDA to be entrepreneurial in assisting C/I growth. 2017 EDA Budget Budgeted Expenditures Budgeted Revenues $125,041 Personnel Services $140,000 EDA Levy $26,284 Operational Expenses $2,500 Interest Earnings $9,500 Technology Village $8,500 Technology Village Leases $160,825 Budgeted Expenditures $9,825 EDA Reserves $160,825 Budgeted Revenue Actual Expenditures Actual Revenues $94,231.41 Personnel Services $139,357.85 EDA Levy $2,930.06 Operational Expenses $1,523.12 Interest Earnings $1,335.61 Technology Village $8,292.53 Technology Village Leases $98,497.08 Actual Expenditures $0.00 EDA Reserves $149,173.50 Actual Revenue Unrestricted EDA Special Revenue (Reserve) Fund Balance as of 12/31/17 = $200,962. 2018 EDA Budget Budgeted Expenditures Budgeted Revenues $117,453 Personnel Services $140,000 EDA Levy $28,324 Operational Expenses $2,700 Interest Earnings $7,820 Technology Village $7,820 Technology Village Leases $153,597 Budgeted Expenditures $3,077 EDA Reserves $153,597 Budgeted Revenues Measuring Success (Metrics) The EDA will track performance measurements that allow reporting on important aspects of its services, programs and processes. To measure progress toward achieving the objectives identified in this plan, the following metrics will be used: • Track building permits issued for commercial/industrial projects. • Track residential permits and remaining lot inventory. • Track lease inventory of available commercial/industrial building space. • Track change in commercial/industrial market value using County data. • Track the number and acreage of pad-ready commercial/industrial sites. Page 7 of 7 INTENT TO RETAIN FLEXIBILITY The EDA will work to prioritize those projects that, in the EDA’s judgment, will address the most pressing public purpose. Because it is not possible to anticipate every type of project that may provide benefit to the City of Prior Lake, the EDA shall retain the option to amend or waive sections of this plan when it is determined to be necessary and/or appropriate. This business plan will provide guidance regarding the criteria the EDA will use in evaluating certain initiatives; however, whether a project meets the criteria and serves the City’s present needs shall be the EDA’s decision. The guidelines are instructive only and do not have the force of law. If the EDA finds that its present needs require one project to be given priority over another, then the EDA’s judgment will ultimately prevail. It is the intent of the EDA to provide funding to achieve these econom ic development initiatives in the most limited fashion possible to assure the initiatives are achieved. This process is inherently subjective, and whether an initiative is funded or achieved may be as much a function of the EDA’s budget as the merit of the project or initiative. FUNDING SOURCES Funding to achieve the economic development initiatives identified within this plan is available within the EDA annual budget and the EDA Special Revenue Fund. The EDA Special Revenue Fund has an unrestricted fund balance of $200,962 as of 12/31/2017. In addition, the Prior Lake City Council has provided $300,000 of General Fund Reserves to the EDA Special Revenue Fund to pursue these initiatives. The EDA will attempt to identify sustainable sources of revenue for future consideration by the City Council. Potential sources of revenue that the EDA will explore, in addition to general fund reserves, include, but are not limited to a redirection of fiscal disparity funds to the EDA, the transfer of revenue generating properties form the City of Prior Lake to the EDA, or an increase in the EDA levy. Comprehensive Financial Management Policy In conformance with the Comprehensive Financial Management Policy, the EDA will strive to maintain a fund balance within the EDA Fund to meet both anticipated and unanticipated future economic development needs. The EDA will maintain a reserve balance at a level which takes into consideration, i) professional services; ii) significant funding which may be required for acquisition of land for development opportunities; iii) potential relocation costs or legal costs attributable to economic development actions; iv) anticipated or unanticipated environmental concerns or impacts; and v) cash flow for a minimum of six (6) months of projected operating expenditures. ANNUAL REPORTING The EDA will submit an updated Business Plan to the City Council annually which details the previous year’s activities and provides an accounting of how EDA f unds were spent to achieve the identified initiatives during the prior year. 4646 Dakota Street SE Prior Lake, MN 55372 BUSINESS ENGAGEMENT COMMITTEE REPORT MEETING DATE: May 24, 2018 AGENDA #: 5.b. PREPARED BY: Casey McCabe, Community Development Director AGENDA ITEM: RESIDENTIAL AND COMMERCIAL ACTIVITY UPDATE DISCUSSION: Introduction Staff has prepared a development update as of April 30, 2018, for BEC review. The attached mem- orandum provides a summary of commercial and industrial development and residential construc- tion in the City of Prior Lake. ALTERNATIVES: RECOMMENDED ALTERNATIVE: ATTACHMENT: Information Only. Information Only. 1. Development Update Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com Memo Date: May 21, 2018 To: City of Prior Lake Business Engagement Committee 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 April 30, 2018. Number of Permits Declared Value Number of Permits Declared Value Number of Permits % Increase / (% Decrease) Declared Value % Increase / (% Decrease) Single Family Dwellings 30 $12,111,000.00 20 $6,802,000.00 50.00 78.05 Townhouses (# units)12 $2,048,000.00 0 $0.00 1200.00 ### Multiple Units 0 $0.00 0 $0.00 n/a n/a New Commercial Industrial & Commercial 0 $0.00 0 $0.00 n/a n/a Residential 169 $2,173,300.00 210 $1,092,157.00 (19.52)98.99 Industrial & Commercial 8 $1,124,900.00 1 $500.00 700.00 ### Mechanical 183 $0.00 179 $0.00 2.23 n/a Mechanical (SF & TH)120 $0.00 72 $0.00 66.67 n/a TOTALS 522 $17,457,200.00 482 $7,894,657.00 8.30 121.13 t Mechanical permits include but are not limited to furnaces, water heaters, softeners, and fireplaces. They are flat-rate permit fees. Increase / (Decrease)2018 Year to Date 2017 Year to Date New Residential Additions and Alterations tt Mechanical (SF & TH) permits include required plumbing, heating, sewer and water and fireplace permits for new single family residences They are flat-rate permit fees