HomeMy WebLinkAbout10B - Business Retention Workshop Results
MEETING DATE:
AGENDA #:
PREPARED BY:
AGENDA ITEM:
DISCUSSION:
ECONOMIC DEVELOPMENT AUTHORITY
OF THE CITY OF PRIOR LAKE
DECEMBER 21, 1998
lOB
DONALD RYE, PLANNING DIRECTOR
CONSIDER APPROVAL OF BUSINESS RETENTION
PROGRAM
History: On November 17, 1998, the EDA sponsored a workshop on
the Business Retention and Expansion (BRE) program provided
through the Extension Division of the University of Minnesota. The
purpose of the program was to inform staff and EDA members as to
what activities were typically included in a BRE program, what the
perceived benefits are and the costs of such a program.
Staff members from the Extension Division explained the process that
has been developed through the Extension Division. The process
consists of visits to local firms, follow-up from the visits, a survey and
analysis of the data collected in the survey and implementation of the
BRE program. The Extension Division provides a variety of services
during this stage of the process, at a cost ranging from $7,000 to
$8,500 for the basic package. Additional services could run as much
as an additional $10,000 to $12,000, depending on the services being
contracted for. In addition, the process utilizes a large number of local
citizens in a BRE task force over the duration of the process. The
entire process can take as long as 1.5 to 2 years.
Issues: There appear to be three issues related to participation in a
BRE program. The first is cost, the second is need and the third is the
availability of staff time to insure that the program continues as
planned.
Regarding cost, the EDA does not currently have money in the
proposed 1999 budget to fund such an activity. There are two
alternatives in this regard. The first is to wait and program funds for
the year 2000 and the second is to draw on the funds available in the
EDA account maintained by land sale proceeds.
The second issue is the need for such a program in Prior Lake at this
time. One argument is that, with the limited amounts of commercial
and industrial property in the City, the first priority should be to foster
new growth and development before devoting resources to a BRE
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162 0 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
ALTERNATIVES:
RECOMMENDED
MOTION:
REVIEWED BY:
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program. Related to this is whether a full-scale formal program as
proposed by the Extension Division is necessary at this time. It is
possible that something at a lesser scale conducted by staff and EDA
members as time allows may be adequate for some years to come or
until the EDA is better able financially to carry out such a program.
The question of staff availability also needs to be considered.
Presently, the Planning Staff is heavily involved in developing and
adopting the new zoning ordinance and a major amendment to the
Comprehensive Plan. Once these items are concluded, a new
subdivision ordinance must be developed. Staff does not b~lieve there
will be significant blocks of time available for the Extension Division
program. If the EDA were to develop a more modest approach, the
ability of staff to effectively participate becomes more likely.
Conclusion: Staff is of the opinion that full participation in the
Extension Division BRE program at this time is not necessary and
could not be supported at this time with available resources. Staff
believes that a more modest program utilizing EDA members and staff
could be developed. If this route is chosen, the EDA should create a
subcommittee to prepare a specific program for EDA consideration.
The EDA has three alternatives:
1. Elect to participate in the Extension Division program
2. Elect not to participate in the Extension Division BRE program,
but consider a modest BRE effort.
3. Other actions as determined by the EDA.
The staffrecommends Alternative #2. A motion and second to elect
not to participate in the Extension Division BRE program and to direct
staff to investigate and report on the possibility of developing an in-
house BRE program is required.
tive Director
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