Loading...
HomeMy WebLinkAbout6 - Economic Development Director AGENDA NUMBER: PREPARED BY: SUBJECT: DATE: INTRODUCTION: BACKGROUND: 6 KAY KUHLMANN, ASSISTANT CITY MANAGER RECOMMENDATION FOR ECONOMIC DEVELOPMENT DIRECTOR POSITION APRIL 19, 1993 The City Council of Prior Lake discussed the hiring of an Economic Development Director during their budget hearings in the Fall of 1992. City Council agreed to place funds in the budget to hire the Economic Development Director in October of 1993. This decision was contingent on a recommendation from the new City Manager. The Prior Lake City Council discussed the decision at the Council Retreat on April 2, 1993 and requested that staff and the Economic Development Committee make a final recommendation to them regarding this position. In the past the Assistant City Manager has provided staff support to the EDC. This arrangement has worked relatively well in the past. However in the last 1-2 years the level of activity in the Economic Development Department has increased substantially. In addition the demand on the Assistant position has been equally increasing in the area of personnel. The staff recommendation to split the economic development activities from the Assistant city Manager position was a relatively easy decision to make. Facilitating the staff support for the economic development activities is the issue that needs to be resolved. When City Manager Frank Boyles was hired in March of 1993, one of his first assignments was to analyze the pro~osed Economic Development Director position ln order to make a recommendation to the Council. The Economic Development Committee has also been asked to assist in the analysis of this position. 4629 Dakota St. S.E., Prior Lake, Minnesota 55372 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER DISCUSSION: The Prior Lake Economic Development Committee had a regular meeting on April 14, 1993. One of the agenda items was a discussion of the staff support for economic development activities. City staff presented a recommendation that discusses the merits of using an alternate service. Attached to this write-up is a memo that went to the Economic Development Committee providing the rationale for hiring a consultant in lieu of a full-time Economic Development Director. To reiterate the position, staff would recommend that the Council contract with a service to provide Economic Development staffing to the Economic Development Committee. The merits of hiring a consultant are: 1) the cost will be substantially less than going with a full-time Economic Development Director, 2) the expertise and experience through a contractual service will far exceed the level of expertise coming from a salaried person budgeted at $35,000.00, and 3) this does not commit the City to a full-time ongoing position, but rather gives us the flexibility to enter into or exit a contractual arrangement. The only exception the EDC made from staff's recommendation is to request the Council to hire Roger Guenette of Advance Resources to begin working for the City of Prior Lake on a contractual basis instead of going through the request for proposal process. The EDC believes Roger is the best candidate because of his familiarity with Prior Lake. Staff would concur. Attached please find a copy of a proposal for Economic Development Services submitted by Roger Guenette. Staff is comfortable with this proposal and believes the Council should authorize the contract to begin May 1, 1993. Staff would request 2 conditions to the agreement: 1. The agreement be for 1 year with review by staff and EDC at 6 month interval. Favorable performance would constitute a 6 month extension. At the conclusion of 1 year, staff would request EDC input on continuing the contractual agreement or considering a full time position. 2 . That Roger Guenette be assigned to Prior Lake attendance is expected meetings. the and at individual that his all EDC 2 ALTERNATIVES: RECOMMENDATION: lAGN6" staff would further recommend that a trial period of 12 months be established so that a year from now, before the City enters into the 1995 budgeting cycle, staff could evaluate along with the EDC the merits of continuing the service or looking for full-time Economic Development Director. The City Council has alternatives to consider: following the 1. Endorse staff's recommendation for hiring Advance Resources to provide economic development staffing as s~ecified in the agreement and further deflned by the 2 aforementioned conditions. 2. Deny the request and direct staff to pursue alternate options. Prior Lake City staff recommends that City Council move alternative #1 Endorsing staff's recommendation for hiring Advance Resources to provide economic development staffing as specified in the agreement and further defined by the 2 aforementioned conditions. 3 M E M 0 TO: FROM: SUBJECT: DATE: ECONOMIC DEVELOPMENT COMMITTEE ~~ KAY KUHLMANN, ASSISTANT CITY MANAGER RECOMMENDATION FOR ECONOMIC DEVELOPMENT SERVICES APRIL 6, 1993 The Prior Lake Economic Development Committee has discussed, at length, the proposal of hiring a full-time Economic Development Director. The purpose of hiring a full-time Economic Development Director would be to better facilitate economic development opportunities in Prior Lake. The EDC did strongly recommend that the Prior Lake City Council include a full-time Economic Development Director position in the 1993 budget. During the budget hearings in the fall of 1992, the Prior Lake City Council did include funding for a full-time Economic Development Director to start in October of 1993. This inclusion in the budget was contingent on a recommendation from the new City Manager. On March 1, 1993 a new City Manager was hired for the City of Prior Lake. Mr. Boyles and Kay Kuhlmann have discussed at length the Economic Development Director position. It is the recommendation of Prior Lake City staff that the Economic Development Committee consider an alternative to hiring a full-time Economic Development Director at this time. This memo has been written to provide the framework for discussion with the EDC for the recommendation of a full-time Economic Development Director. City staff has done some research regarding alternatives and has a proposal. The full-time Economic Development Director is a position that has been identified as necessary for the City in order to: 1) enhance our economic development services, 2) promote our development opportunities, specifically the Business Office Park, and 3) to better facilitate Economic Development Committee activities. The EDC assigned staff person has had a hard time meeting the demands of the EDC and completing other tasks as assigned by the City Manager. In the future, the Assistant City Manager will be spending more time meeting state mandates in the area of personnel. The EDC under the current conditions will have less staff assistance than in the past. This is an unacceptable condition in that: 1) Prior Lake City is on the verge of an increased development rate, 2) the Business Office Park purchase is complete and is now available for sale, and 3) the City of Prior Lake has several redevelopment opportunities that need to be addressed. In order for the City to continue to have the assistance of an Economic Development Committee they need to provide staff support. One alternative would be to hire a full-time Economic Development Director. Another alternative would be to provide contractual services for the EDC that, hopefully, will meet the needs of the economic development in Prior Lake. Prior Lake City staff believes that ultimately a full-time Economic Development Director will be necessary to facilitate our economic development needs. Unfortunately with budget constraints being the way they are, staff needs to be able to facilitate the current needs within a very tight budget. The salary structure proposed for the full-time Economic Development Director was at a salary not to exceed $35,000. This was budgeted for three months in 1993. The budget impact in 1993 is rather minimal compared to the bud~et impact in future years. The overall costs (1993) anticipated wlth the salary of $35,000 plus benefits is $10,900. At $35,000 the City can anticipate hiring someone with minimal experience, and possiblr not have expertise necessary to facilitate the projects identlfied by the EDC. The EDC wanted to hire someone to provide ongoing liaison work and 'sell' Prior Lake. City staff would like this person to be able to provide financial expertise, legislative updates, and facilitate projects. staff does not believe a person hired at this level will have the expertise or resources to do this. Therefore, staff would look at an alternate way of ~roviding more of the necessary characteristics of an EconomlC Development Director. The alternates are then to: Increase the salary structure so that we're hiring a with experience and background. The estimated structure could be ap~roaching the $50,000-$60,000 Staff believes that thls unacceptable at this time. 2. Contract with Economic Development Services. staff is familiar with several different agencies that provide this service. One being Advance Resources which has been the City's economic development resource for many years. Staff feels comfortable with Advance Resources but believes an RSP should be outlined in order to encourage other competitive proposals. 1. person salary range. The outline for the work to be provided by an economic development consultant would be as follows. A. Administration Staff Service (i.e. minutes, agendas, coordination) B. Policy Setting (i.e. recommendations to council) C. Program Design (i.e. Revolving Loan Program) D. Marketing Materials (brochures, P.R.) E. Correspondence with Prospects (i.e. Katun) F. Proposal Preparation (i.e. Katun) G. structuring Financing (i.e. TIF) In conclusion staff believes at a cost for basic services of $1,500 a month, the City could receive better service from a contractual service. The contractual service would provide all administrative support and expertise on a variety of issues. Staff from the City will attend all EDC meetings to report on projects and represent the city Manager. Staff would also be responsible for continuing the ongoing relationship with the existing business communitr by coordinating Business Outreach with the EDC. Although addltional funds will be necessary to prepare detailed financing ~ackages and all of the detailed TIF work, This cost us would be slmilar under either approach. Staff believes that hiring an economic development service would meet our economic development objectives better because: Economic Development Services can be initiated within the next month rather than waiting for October as contemplated in the bud~et. The caliber of the servlces received will be better than we can expect given the bud~et constraints. The costs are within the eXlsting budget allocation. This experiment will help us determine whether this approach is as effective as a full time position. If not, a full time position can be considered for 1995. Prior Lake City staff would recommend that the EDC support alternative number two as a short term strategy to accomplishing the Economic Development Committee goals. Staff would recommend that the EDC 1) endorse the staff recommendation for this service for the balance of 1993 and for the first six months of 1994, 2) that the EDC and City staff evaluate the program in June of 1994 and make recommendations to the City Council regarding hiring a full-time Economic Development Director in 1995, 3) that the EDC encourage the Council to initiate the request for a proposal as soon as possible and hope to bring on an economic development service in June of 1993. The staff and an EDC representative would interview first following receipt of proposals and recommend one or more for final Council approval. 1.) 2. ) 3 . ) 4. ) "MEM05"