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Home My WebLink About9 - Scott County Economic Dev. Coalition AGENDA NUMBER: PREPARED BY: SUBJECT: DATE: INTRODUCTION: BACKGROUND: HERITAGE 1891 COMMUNITY 1991 CUTJ'.5f)./{I 2qgl 9 KAY SCHMUDLACH, ASSISTANT CITY MANAGER CONSIDER RESOLUTION 90-49 - REGARDING THE FORMATION OF A SCOTT COUNTY ECONOMIC DEVELOPMENT COALITION SEPTEMBER 4, 1990 The Economic Development Committee identified the exploration of establishing a county wide development coalition as a 1990 goal. The Economic Develol?ment Committee has been represented by Cl.ty staff on a count~ task force that is discussing economic actl.vities that could be done more efficiently and effectively as a mUlti-city effort, specifically public relations/information and project financing processing. (Staff has been keeping the Council aware of these efforts through verbal updates and Notes and Updates) . This agenda item has been prepared to update the City Council on this exploration process and request City Council consideration of a resolution authorizing the continued organization of a Scott County Economic Development Coalition and requesting Scott County's support for participation in the Twin cities Metro Development Company loan processing programs. On five occasions the economic development staff from New Prague, Jordan, Shakopee, Savage, Prior Lake, and the Scott County HRA have met to explore the potential for a county wide Economic Development Coalition. Scott County staff have participated in some of these meetings too. On July 26, 1990 the task force held an informational meeting with community business leaders, Chamber leaders and community development committee leaders to share the preliminary thoughts on this proposed coalition. The attendees of indicated support the informational meeting for the concept and 4629 Dakota 51. S.E., Prior Lake, Minnesota 55372 / Ph. (612) 447-4230 / Fax (612) 447.4245 I requested the task force to investigate the organization of this coalition. further proposed The task force did a comparison of the other metrol?olitan economic development organl.zations to ascertain their organizational structure, budget, staffing, and loan processing capabilities. The task force also researched the organizational foundation of the Scott County Transportation Coalition because of its recognized success. The task force has not shared the information with business leaders but intends to in the near future. However, prior to approaching the business leaders, the task force believes it would be appropriate to get direction from the respective Cit~ Council's. The task force would like an l.ndication of the City Council's support through the passage of the attached resolution. The resolution also requests the County's support for granting approval to allow the Twin cities Metro Development Company to process SBA 503/504 loans. DISCUSSION: The l?roposed Scott County Economic Development Coall.tion will be discussed in subsequent meetings with the same individuals invited to the July 26th informational meeting if the Scott County City Council's approve the resolution. Based on the anticipated discussions, the task force will be presenting an organizational proposal to the City Council in the next 3 - 6 months. The proposal will outline the organizational structure, membership and other details of the proposed Economic Develol?ment Coalition. The task force's prelim1nary thoughts are to organize as a coalition through a joint powers agreement, eliminating the need and expense of incorporation as a public nonprofit corporation. The task force would also like to approach the Scott County Board regarding the authorization of the Twin cities Metro Development Company to process loans. The Twin cities Metro Development Company has recently been organized to assist suburbs in processing the 2 RECOMMENDATION: ALTERNATIVES: SBA 503/504 loans. Currently any SBA 503/504 loans can be processed through the state Omni program. Although the Twin cities Development Company provides the same technical processing capabilities, it also provides loan packaging assistance. In cities like Prior Lake neither the City staff nor some banking institutions have key people with the experience or time to walk potential small business people through the process. The Resolution (90-49), if passed, will be forwarded to the County for approval. Once the County Board authorizes the use of the Twin Cities Metro Development Company, cities and businesses may use this service. The development company will charge 1% of the loan as their processing fee. In the event that the Scott County Economic Development Coalition is formally organized, the coalition may opt to become a member of the Twin Cities Metro Development Company. The onetime membership fee of $5,000.00 entitles the member to 3/8% of 1% of the loan as revenue. On a one million dollar loan, the 3/8% equates to $2,250.00 in revenue that would be returned to the Scott County Economic Development Coalition. The Scott County Economic Development Coalition would anticipate using the revenue to support marketing/public relations/information activities. The $5,000.00 fee could be covered through the coalition membership fee from businesses. Details of the coalition budget will be worked out in the future. The staff and EDC support this resolution and the formation of a Scott County Economic Development Coalition. The City of Shakopee has already passed a similar Resolution. Other cities have been asked to adopt a Resolution by September 15. The City Council has alternatives to consider: the following 1. Pass Resolution 90-49 indicating interest in pursing the formation of a Scott County Economic Development Coalition, and encourage the County to allow the Twin cities Metro Development Company to process SBA 503/504 loans in Scott County. 3 ., . 2. Table Resolution 90-49 at this time and request additional information. ACTION NECESSARY: Motion to pass Resolution 90-49 is in order. 4 HERITAG~.,...... COMMUNITY 1891 1991 WJ50-_~i~ 2C{.91 RESOLUTION 90-49 A RESOLUTION INDICATING THE CITY OF PRIOR LAKE'S DESIRE TO INVESTIGATE THE FORMATION OF A SCOTT COUNTY ECONOMIC DEVELOPMENT COALITION AND REQUESTING SCOTT COUNTY'S SUPPORT GRANTING APPROVAL TO ALLOW THE TWIN CITIES METRO DEVELOPMENT COMPANY TO PROCESS SBA 503/504 LOAN PROGRAMS IN SCOTT COUNTY MOTIONED BY SECONDED BY WHEREAS, there are a limited number of tools available to attract qualified commercial and industrial prospects to our community; and WHEREAS, the Prior Lake City Council recognizes that small businesses play a si9nificant role in contributing to the economic well bel.ng of a community; and WHEREAS, the City of Prior Lake recognizes the fact that economic development activity in areas outside of the city limits of the City of Prior Lake and within Scott County will have a spinoff positive impact on our community; and WHEREAS, it would be mutually beneficial for the communities in Scott County to work t0gether to promote the Scott County area as an attractl.ve area to do business; and WHEREAS, recent state cutbacks in funding prevent the city of Prior Lake from obtaining sufficient staff resources to process and package small business administration loans for interested businesses; and WHEREAS, the Twin cities Metro Development certified by the State of Minnesota 503/504 loan programs; and Company has to process been SBA WHEREAS, it is necessary for the Scott County the approval for the Twin cities Company to process SBA 503/504 loan Lake; Board to authorize Metro Development programs in Prior NOW THEREFORE BE IT RESOLVED BY PRIOR LAKE, MINNESOTA, that continue to investigate the Development Coalition who's development in Scott County. THE MAYOR AND CITY COUNCIL OF the city of Prior Lake intends to formation of a Scott County purpose will be to foster economic 4629 Dakota 51. S.E., Prior Lake, Minnesota 55372 I Ph. (612) 447.4230 / Fax (612) 447-4245 , 'I BE IT FURTHER BE RESOLVE~ .~~the Prior Lake City Council hereby requests the Scott CountH Board to grant approval to allow the Twin cities Metro Develop~nt Company to process SBA 503/504 loan programs in Scott County. Passed and adopted this day of , 1990. YES NO Andren Fitzgerald Larson Scott White Andren Fitzgerald Larson Scott White David J. Unmacht City Manager City of Prior Lake {Seal}