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EDA MEETING PACKET 04-14-2014CITY OF SCANDIA ECONOMIC DEVELOPMENT AUTHORITY Monday, April 14, 2014 6:30 P.M. Scandia Community Center Board Room 1. Call to Order 2. Approval of Minutes (March 3, 2014) 3. Approval of Agenda 4. Public Forum 5. Old Business a) Natural Gas Update b) Survey for Storefront BRE 6. New Business a) Comments on County Economic Development Plan b) Thrive 2040 7. Commissioner Reports 8. Executive Director's Report 9. Agenda Items for Next Meeting (May 12, Broadband) 10. Adj ournment * "Note: A Quorum of the City Council May be Present at this Meeting. However, the City Council does not intend to conduct any official business * * * The Scandia Economic Development Authority met in the Board Room at the Scandia Community Center on Monday, March 3, 2014 beginning at 6:30pm. Commissioners Present: Tom Triplett, Bruce Swenson, Sally Swanson, Greg Isaacson. Absent: Dan Lee. Staff Present: Kristina Handt. The meeting was called to order at 6:30pm by Swanson. Motion by Swenson, seconded by Triplett to approve the February 10, 2014 minutes. Motion carried. Motion by Triplett, seconded by Isaacson to approve the agenda. Motion carried. Swanson introduced the issue and stated people in the northern portion of the City are interested in natural gas expansion. Colette Jurek and Michael Mayerchak from Xcel Energy were introduced. Mayerchak explained the rules they have to follow which are on file with the PUC when considering a natural gas extension. Xcel can extend natural gas 100 feet at no cost but after that there is a formula to pay for the rest of the extension aimed at making it fair for all ratepayers so some don't have to pay higher rates for others service. In the area of Olinda/Oren/Ogilvie, Mayerchak identified 16 houses. At a cost of $74,000 to extend the service to Ogilvie (which is about 6,000 feet from where the line ends at 223�d), each house would have to pay over $4,600 to get the main in the street. The first 75 feet into the property is free unless it needs to be sleeve for gophers which is $1.50/foot. After that it is an additional $3.50/foot to the meter. Bob Bernard, 14797 Oren Road, asked about spreading the cost over 15 years. Xcel has an internal policy of only doing this if there 100 hookups. Residents asked about extending service from the Bone Lake area but Mayerchak said that was even further away and would cost more. After the first 100 feet it costs about $20 /foot to extend the line. Merlyn Nelson, 14077 237th St, asked why the prices have gone up so fast. Mayerchak explained the new federal regulations utilities are under following the Enron incident in the beginning of the century. Xcel files their actual costs with the PUC each year and an average price for extension is based on that. Swanson asked if there were any programs to help pay for the extension. Other than a surcharge if 100 customers are connected the other option Xcel mentioned was the Bridgewater Township example of creating a special taxing district. The City pays Xcel and then recoups the cost over 15 years of special assessments against the property. It was noted that there could be many pros and cons to this such as the rest of the taxpayers covering a default or the next person getting to connect without having to pay an assessment. Xcel is looking into the option of allowing people to put the cost on their credit card but this hasn't been approved yet. Bob Bernard addressed the crowd and asked them to consider the cost benefit of hooking up to natural gas if the cost of propane continues to rise. It was noted that propane would have to be at $0.92/gallon to be comparable in price to natural gas. Mayerchak will run some options for getting 100 customers hooked up and share that cost and info with the City. Attendees were asked to sign up if they were interested in receiving the data from Xcel. The signup sheet was also shared with Xcel so they could see where people were interested in getting natural gas. The Board reviewed the broadband survey questions suggested by Bill Coleman. Jesse Pereboom was also in attendance and offered feedback on the survey. Jesse suggested asking about the quality of the connection, how many times the modem has to be restarted and provide a section for other comments. Swanson recommended language reminding people to do the test on their home computer and not to use multiple devices. Swanson also reported she had conversations with Midcontinent and cable will be extended to her neighborhood this summer. She had questioned them about the maps showing coverage on connectmn.org and was told that if service is within 2 miles it shows up on the map because they just report based on census tracts. Triplett also contacted Mid Continent and was told he could get service. He is having a technician come out and will report back later. Motion by Isaacson, seconded by Swenson to distribute the surveys as amended. Motion carried. The deadline for the surveys will be May 1 st The Board reviewed the listings of businesses for the BRE survey. A handful of businesses were suggested to be added to the list in the staff report and some were identified as closed or duplicative. The board agreed to focus on retail storefront businesses first. Handt will update the listings and provide a draft survey at the next meeting. Commissioner Reports: None Handt provided a verbal update: Washington County is hosting a League of Local Governments meeting on March 31, 2014, 5-7:30pm and the topic is economic development. The next meeting will be Monday, April 14, 2014 at 6:30pm to review survey questions and business listings for the BRE and review broadband progress. Motion by Swenson, seconded by Isaacson to adjourn. Motion carried. Meeting adjourned at 8:28pm. Respectfully Submitted, Kristina Handt, Secretary XceiEnergys E BY NATURE® Natural Gas Service City of Scandia April 14, 2014 Why Natural Gas Conversion? ■ Stability in Natural Gas Prices ♦ Advances in production support stable pricing ■ Propane Prices Are Expected to Increase ■Cochin pipeline, carrying 40% of Minnesota's propane, is phasing out propane deliveries ■MN propane shippers are working to find alternate distribution for 120 million gallons of propane K Propane Price Impacts to Home Owners ■ The average price of propane for the past 3 years was $1.83/gallon ■ In 2014, prices are expected to reach or exceed $5.00/gallon and the average price is expected to increase to $2.75/gallon ■ Natural Gas Comparison ♦ Residential natural gas option at $1.00/gallon propane equivalent 3 U.S. Oil And Natural Gas Proved Reserves U-S. crud'e oil and lease condensate proved reserves billion barrels 35 -- -------- ---- - ----- -- ------ --- --- 30 25 20: 15 10 5 0 1981 ' 1984 ' 1987 1990: ' 1493 1996 1999i 206 2005 MOB 2011 U.S. wet natural gas proved reserves trillion cubic feet 350; 30 G 25 G ------ 20:01 15 0! 100 1981 1984 1987 1990 1993: 1996 1999 2002 2005 2008 2011 Source: U.S. Energy Information Administration, FormEIA-23, 'Annual Survey of DomesticReseivesr 1981-2011 Natural Gas Price Forecast Related to Shale Production H en ry H.0 b of natural) ci n fo u r- gms re.so u r-ces cases 2010 dollars per million Btu e. Pa $112 $10 $8. $6 $4- 0 w I LI Ct I'd IN J L I CA IV i t.-'y.! S 20 GO 20 0,5 2010 20:15, 2020 2025 2030; 20,35, 5 Natural Gas Distribution w , VIKING %y l�ih�:fiSCf LNG PLANTS SUP -PLIERS TES DISTRIBUTION LINES NORTHERN L,. r xI TRANS I IS SI ON E PIPELINE DRS NSP T10SMISSION LINE NS? GAS AREA CUSTOMER 0 Approximate Gas Route in Scandia is I I Xcel Energy Average Natural Gas Prices ■ Residential ♦ 2011: $.72/Therm ♦ 2012: $.61/Therm * 2013: $.66/Therm ♦ 2014: $.84/Therm 2014 January -April* *April 2014 price went down significantly from March due to the TransCanadian Pipeline explosion in late January 2014. 0 Xcel Energy Gas Rate History Last 12 Months May-2013 $0.681314 Jun-2013 $0.686824 Jul-2013 $0.654635 Aug-2013 $0.645655 Sep-2013 $0.619095 Oct-2013 $0.616845 Nov=2013 $0.698398 Dec-2013 $0.702508 Jan-2014 $0.754268 Feb-2014 $0.842048 Mar-2014 $1.030368 Apr-2014 $0.725708 Previous May-2012 $0.471617 Jun-2012 $0.513527 Jul-2012 $0.528467 Aug-2012 $0.567204 Sep-2012 $0.542824 Oct-2012 $0.578734 Nov-2012 $0.699164 Dec-2012 $0.702684 Jan-2013 $0.663 814 Feb-2013 $0.669754 Mar-2013 $0.671264 Apr-2013 $0.664814 Previous May-2011 $0.694017 Jun-2011 $0.705717 Jul-2011 $0.706837 Aug-2011 $0.713437 Sep-2011 $0.666957 Oct-2011 $0.661267 Nov-2011 $0.742977 Dec-2011 $0.747625 Jan-2012 $0.716627 Feb-2012 $0.699057 Mar-2012 $0.698127 Apr-2012 $0.543377 Natural Gas Cost Examples Natural Gas Therms/Year 1,007 Natural Gas Cost per Year $903 Service Cost $1,132.50 Cost for Main 80 Pay $364K: Approximately $47550 Other Costs Convert Appliances $300 Surcharge Cost per Year $300 Total Cost per Year Natural Gas $1,203 LP Cost per Year $2750 Savings with Natural Gas $1,546.99 Initial Installation Cost for Natural Gas $57982.50 Simple Payback 3.9 Years `U1 Natural Gas Cost Examples Natural Gas Therms/Year Natural Gas Cost per Year Service Cost Cost for Main Other Costs Surcharge Cost per Year Total Cost per Year Natural Gas LP Cost per Year Savings with Natural Gas Initial Installation Cost for Natural Gas Simple Payback 80 Pay $364K: Approximately Convert Appliances 1,007 $903 $2,062.50 $4, 550 $300 $300 $1,203 $2,750 $1,546.99 $61912.50 4.5 Years 11 Natural Gas Cost Examples Natural Gas Therms/Year Natural Gas Cost per Year Service Cost Cost for Main Other Costs Surcharge Cost per Year Total Cost per Year Natural Gas LP Cost per Year 80 Pay $364K: Approximately Convert Appliances 1,007 $903 $1,132.50 $4, 550 $300 $300 $1,203 $3,850 Savings with Natural Gas $2,646.99 Initial Installation Cost for Natural Gas $5,982.50 Simple Payback 2.3 Years 12 Natural Gas Cost Examples Natural Gas Therms/Year Natural Gas Cost per Year Service Cost Cost for Main Other Costs Surcharge Cost per Year Total Cost per Year Natural Gas LP Cost per Year 80 Pay $364K: Approximately Convert Appliances 1,556 $903 $1,132.50 $4,550 $300 $300 $1,203 $4,250 Savings with Natural Gas $3,046.99 Initial Installation Cost for Natural Gas $5,982.50 Simple Payback 2.0 Years `IQ City of Scandia Partnership with Xcel Energy ■ Economic Development ♦ Natural gas long term price stability; support for new business ■ Energy Efficiency ♦ Rebates for energy efficient equipment ■ Historic Low Gas Purchase Cost ■ Compliance and response handled by Xcel Energy 14 Summary ■ Propane Costs are Increasing ♦ Commodity and transport ■ Xcel Energy Natural Gas Prices Are Competitive ♦ Gas storage and peaking plants ♦ Serve over 400,000 natural gas customers in MN ■ We would like to be your natural efficient, reliable residential and the City of Scandia gas partner providing commercial service to 15 n SCANDIA Staff Report Date of Meeting: April 14, 2014 To: Economic Development Authority From: Kristina Handt, Executive Director Re: Natural Gas Issue Background: Last month the EDA heard from residents interested in natural gas expansion to their homes and Xcel Energy about their processes. Xcel was to review possible scenarios for reaching 100 hookups to allow for the amortization of costs over a number of years. Issue: What options can Xcel offer to assist in natural gas expansion? Proposal Details: Colette Jurek and Michael Mayercheck will be in attendance at the meeting to present options to reach 100 potential new properties. They will have information available about a website they will set up to allow people to sign up for natural gas service in the area of possible expansion. They will also discuss further details on financing options and are looking into any state assistance that may be available. Recommendation: Gather information from those at the meeting and determine if there is a need for the EDA/City to be further involved in the process of getting natural gas extended. SCANDIA Staff Report Date of Meeting: April 14, 2014 To: Economic Development Authority From: Kristina Handt, Executive Director Re: Business Retention and Expansion (BRE) Survey Background: The EDA has been discussing the possibility of conducting a Business Retention and Expansion Survey. At the last meeting, it was discussed to focus first on businesses with storefronts in Scandia and that I would compose a survey using the U of M Extension's Question Bank.. Issue: What questions should be included in the BRE survey? Which businesses will be surveyed? Proposal Details: Included in your packet is a survey using U of M Extensions sample questions. The Board should decide if any modifications need to be made to the survey. The survey is similar in length to those used in other communities including Forest Lake. I've updated the list of businesses to include your recommendations from the last meeting. Possible businesses to survey could include: 1) Eko Backen 2) Gammelgarden Museum 3) Ironwood Golf Range 4) Chiko's Bar and Grill 5) Meister's Bar and Grill 6) Scandia Pizza 7) The Scandia Cafe 8) Kendrick Chiropractic 9) Osceola Medical Center-Scandia Clinic 10) Scandia Family Dental 11) Scandia Veterinary Clinic 12) Health Insurance Mart 13) Landmark Surveying Inc. 14) Prairie Restoration Inc. 15) Scandia Heating and Air Conditioning 16) The Brunfelts Keller Williams Premier Realty 17) Abrahamson's Nursery 18) Anyo Salon 19) Big Marine Lake Store 20) Crabtrees & Garden Gate 21) Designs of Sweden 22) Edward Jones Investments 23) Farmers Insurance Group -Andrea Bakken 24) Leroux's All Season Lawn and Sports 25) Oly's Swedish Massage 26) Pereboom Computer Service 27) R & B Auto 28) Salon Belleza 29) Scandia Creamery 30) Scandia Hair Design 31) Scandia Olde Town Liquors 32) Scandia Self Storage 33) Scandia Store 34) Security State Agency Insurance 35) Security State Bank of Marine 36) Todd's Home Center 37) Upholstery Specialties of Minnesota 38) Wilkerson Guthmann 39) Chisago Lakes Fire 40) Deer Creek Cedar Homes 41) School House Studios 42) Funky Gardens 43) Milbrandt Studios 44) Wally's Engine Repair Options: 1) Approve BRE Survey, business listings, and assign businesses to Commissioners 2) Amend BRE Survey, business listings, and assign businesses to Commissioners 3) Review BRE and business listings again at next meeting. Recommendation: Option 1. Economic Development Authority (EDA) Business Retention and Expansion Study City of Scandia Date: Company Name: Address: Survey Participant: Phone: E-mail: Website: Name of Corporate Headquarters (if different than above): Address. - Phone: E-mail: Website: Title: Thank you for participating in the EDA's Business Retention and Expansion Study. The program is sponsored by the Scandia Economic Development Authority. Objective of the BRES program: 1. To gain an understanding of the business community's views of the local government and economy. 2. To determine company plans for expansion or relocation. 3. To strengthen the communications bridge between the business community and local government. 4. To establish concrete data to aid strategic planning efforts. 1. How is your firm structured? Corporation (public) Corporation (closely held) Partnership Sole Proprietorship Other (specify) 2. Do you own or lease this location? Own Lease 3. If you currently lease, when does the lease expire? 4. What year was this business established at this location? 5. Do you believe your product/services have unique qualities that give your business a competitive advantage? Yes No Don't Know 6. If yes, please describe these unique qualities. 7. What are the major products/services offered by this establishment? First Major product/service: Second Major product/service: Third Major product/service: Fourth Major product/service: 8. What percentage of your sales come from each of the major products/services identified above? 1% to 24% 25% to 49% 50% to 74% 75% to 100% Percent of sales: first major product/service Percent of sales: second major product/service Percent of sales: third major product/service Percent of sales: fourth major product/service 9. How many employees currently work at this establishment? 1 to 5 6 to 10 11 to 15 16 to 20 21 to 25 26 to 50 50 or more Full Time Part Time Temporary 10. How many employees worked at this establishment three years ago? 1 to 5 6 to 10 11 to 15 16 to 20 21 to 25 26 to 50 50 or more Full Time Part Time Temporary 11. How many employees (estimated) will work at this establishment three years from now? 1 to 5 6 to 10 11 to 15 16 to 20 21 to 25 26 to 50 50 or more Full Time Part Time Temporary 12. If you reported part time employees, how many are: Seasonal: 1to5 6 to 10 11 to 15 _16to20 _21ormore Year Round: 1to5 6 to 10 11 to 15 16 to 20 21 or more If seasonal, when are your busy seasons (select all that apply): Spring _ Summer Fall Winter 13. Did your firm's employment change over the last five years? Yes No 14. If yes, please check three (3) main reasons for the employment change over the past five years: _Technological changes Changes in management Growth in demand, or lack of demand Number of contracts Business did not exist five years ago Improved or decreased efficiency Government regulation Increased competition Renovation/expansion New products/services _Entered new markets Change in subcontracting Corporate decisions/policies Other: 15. What is your current employment hiring state? Increasing workforce Downsizing Stable 16. What resources are you currently using to locate new employees? Ad in metro -wide papers Ad in local community papers Placement office of four-year or two-year colleges Private search firms Referrals from existing employees Job service Temporary agency Hire our own apprentices Promote from within _Local job fair Internet List Other: 17. If more than 50% of your employees live outside of Scandia, please indicate why you think that is the case? 18. If your workforce was to expand by 10%, would there be affordable housing for these workers within 30 minutes of your place of business? Yes No Uncertain 19. From your perspective as a business person, please rate housing opportunities in this community for OWNED homes. Excellent Above Average Average Below Average Very Poor Quality Availability Affordability Location 20. From your perspective as a businessperson, please rate housing opportunities in this community for RENTAL housing. Excellent Above Average Average Below Average Very Poor Quality Availability Affordability Location 21. How would you rate the local labor force? Excellent Above Average Average Below Average Very Poor Quality Availability Quantity Stability 22. Please indicate where most of your employees live. Within 5 miles of business location Within 5 to 20 miles of business location More than 20 miles from business location 23. Please select the category that best describes your company's gross sales in 2013? Under $25,000 $25,000 to $99,999 $100,000 to $199,999 $200,000 to $499,999 $500,000 to $999,999 $1 million to $2.49 million _$2.5 million to $4.9 million $5 million to $9.9 million _$10 million or more 24. Which of the following strategies do you currently use to increase your sales during less busy days and hours? Nothing Advertise Offer product promotion Extend days and/or hours of operation Change product/service offerings and/or mix Other: 25. Does your company have a website? Yes No 26. If no, what is your main reason for not marketing over the internet? No Internet Access Slow Internet connection No IT support Cost Time commitment Need more information Other: 27. What are the three (3) types of advertising you use the most? Yellow Pages Daily Newspaper Weekly newspaper Weekly shopper paper Radio TV Billboards Direct mail advertising Visitor's guide _Magazines Brochures/flyers/shopping bags Other: 28. Do you share advertising expenses with other businesses to promote your business area? Yes No 29. From the list below, please check the top five (5) factors likely to have a major impact on your business in the next three (3) years. New products Changing customer tastes Demographics Higher consumer spending Foreign competition Domestic competition Raw material shortages Energy Costs Transportation Wage rates Raw material costs Financing availability Taxes/government policies Other: 30. Please check which of the following best describes your company's business activity. We have too much business, capacity is strained Business activity is just right We have too little business activity; excess capacity Wide seasonal or cyclical variations in demand 31. Over the last 3 years, have any of these business factors increased, stayed the same or decreased? Increased Stayed the Same Decreased Number of customers Sales -Total Revenue Profits Employees -Full Time Employees -Part Time Employees -Year Round Employees -Seasonal 32. Over the next 3 years, do you think the following factors for your business will increase, stay the same, or decrease? Increase Stay the Same Decrease Number of customers Sales -Total Revenue Profits Employees -Full Time Employees -Part Time Employees -Year Round Employees -Seasonal 33. In general, how do you meet or become acquainted with service providers? Someone you know referred/recommended the service provider You knew the service provider before they started working for you Referral by a trade association or professional organization _ Competitor used them Advertising or direct mail or yellow pages Unsolicited cold call Article in business publication or newspaper Service provider newsletter/web page Other: 34. Check the three most important factors in evaluating and selecting a service provider. Experience of service provider Service provider's knowledge of your industry Proximity to your location Price Service provider's approach or methodology _ Service provider's reputation Recommendation from a trusted source Personality or "likeability" of service provider Credentials of service provider Referrals from other clients Other: 35. Check the areas that you have used external service providers for in the past three years (select all that apply: Business management Design or engineering Manufacturing operations Quality related issues Environmental and safety Information technology Organizational development Marketing/sales Financial/accounting Human resources development Other: 36. To meet your current or recent financial need, what type of capital are you considering or did you consider? Equity Capital Debt Capital 37. If you plan to use debt capital, which of the following financial institutions do you plan to use or did you use? Commercial bank Savings and loan Federal loan program (USDA, SBA) State Economic Development Loan (DEED, Regional Commission, or Foundation) Other: 38. When you sought your most recent loan, what types of activities or facilities did (do) you hope to finance. Purchase of land without buildings Purchase of land with buildings New building construction Building expansion Building renovation Operating capital Inventory Machinery or equipment Other: 39. Please provide information on your firm's credit experience for the past three (3) years in each of the following categories. Able to obtain Able to obtain Unable to Don't Not desired credit some credit obtain know applicable Short term loans (<1year) secured Short term (<1year) unsecured Long term loans (1-5yea rs) Long term loans (>5 years) Commercial mortgage Home equity loan for business purposes Line of credit Equipment financing or lease. 40. Have you made any of the following changes in the last 3 years? Yes No Changed mix of goods/services Added or subtracted product lines Entered new markets Modernized product technology Adopted labor-saving technologies Made other capital improvements 41. Will you be expanding/improving your current building or equipment? Yes No 42. If yes, do you face any constraints? No constraints Need financial assistance Need planning/design assistance Need to acquire land Other: 43. Are you considering another (additional) branch or store? Yes No 44. If yes, what location are you considering? Elsewhere in Scandia Elsewhere in Washington County Outside the county, but in Minnesota Outside the state Undecided 45. If yes, when will you open the new branch or store? Within 6 months 6 months to a year 1-3 years 46. Are you considering moving, selling or closing this business? No Considering moving Considering selling Considering closing 47. What conditions influence your decision regarding moving, closing, or staying put? (select all that apply) Market conditions Overcrowded building or space Land locked or expansion limited _Transportation problems Crime or vandalism Low worker productivity or unavailability of workers Environmental concerns Building code problems High local taxes High state taxes Lease expiration 48. If moving, selling, or closing, when? Within 6 months 6 to 12 months 1 to 3 years 3 years or more Don't know 49. If moving, where will you move? Elsewhere in Scandia Elsewhere in Washington County Elsewhere in Minnesota Outside of Minnesota Undecided 50. Any other plans for business changes over the next three years? (check all that apply) No change Change in mix of goods or services Add new product or service lines Add new technology 51. Do you have enough room to expand? Yes No 52. Does your store/storefront need updating or "cosmetic" improvement? Yes No 53. Where do you see additional expansion or growth in your business? New building or addition Additional employees Additional equipment or new technology New training program for employees Additional financing Other: 54. What, if any, conservation or "green" actions have you taken or do you plan to take with your business? 55. If you face constraints on renovation or expansion, what are they? Would have an inadequate financial return on investment Inability to get a loan Insufficient space available for expansion Environmental or pollution control limitations Planning and zoning restrictions Governmental regulation prohibits expansion Shortage of adequate labor Shortage of adequate housing for labor Other: 56. What overall grade would you give the community as a place to do business? A (excellent) B (above average) _C (average) D (below average) _F (poor) 57. In the last 3 years, did the community's business climate get stronger, weaker, or stay the same? Got stronger Got weaker Stayed the same 58. What overall grade would you give the retail shopping in the community? A(excellent) _B(above average) C (average) D (below average) F (poor) 59. Is your firm having any problems with local community services? No Yes. If so please specify: 60. What is the most significant thing Scandia could do to help improve your business activity? 61. What specific concerns would you like to see addressed? 62. Do you live in Scandia? Yes No 63. Why or why not? 64. Rate the improvement needs in Scandia Needs significant improvements Needs improvement Does not need improvement Not applicable Appearance of buildings Appearance of business signs Cleanliness of sidewalks Cleanliness of streets Congested streets near your business Parking near your business Pedestrian access to your business Street lighting Variety of stores 65. If your firm (or one just like it) was trying to select a new location, how important would each of the following community factors be in this decision? Critically important Above average importance Average importance Below average importance Not at all important Wage rates Transportation costs Energy costs Localtaxes State taxes Interest rates Workers' compensation rates Unemployment insurance Employee health care costs Availability of labor Availability of raw materials Availability of credit Proximity of four -lane highway Airport facilities Availability of industrial site Availability of housing Availability of quality water Availability of public transportation Telecommunications quality Broadband Access 66. Please indicate whether you believe the cost of doing business in your community is high, acceptable, or low. High Acceptable Low Does not apply Building costs Corporate taxes Environmental regulations Health care Inventory taxes OSHA requirements Payroll taxes Property taxes Public utilities Transportation of product to market Workers compensation 67. From your perspective as a businessperson, please rate the following amenities and services in Scandia. Excellent Above average Average Below average Poor Does not apply Roads, highways and freeways Snow and ice removal Street/sidewalk cleaning Street repairs Water supply Solid waste disposal Sewers/septic Natural gas service Internet access Electrical service Cable television service Telecom infrastructure Public transportation Rail service Air service Fire protection Police protection Emergency medical services Hospitals Medical care, doctors Schools (k-12) Technical/vocational schools Excellent Above average Average Below Average Poor Does not apply Access to higher education Quality higher education Hotel facilities Conference facilities Recreational facilities Recreation services Housing opportunities Labor force quantity Labor force quality Proximity to major suppliers Proximity to major market Overall quality of life 68. With which local school district are you most familiar? Forest Lake Chisago Lakes Stillwater Home school 69. Please rate the following characteristics for K-12 for the school system you checked in the previous questions. Excellent Above average Average Below average Poor Don't know Quality of instruction Quality of facilities Quality of teaching resources (computers, books) Quality of curriculum Number of curriculum choices Quality of sports programs Quality of music/arts programs 70. From the following list of features, please indicate those that enhance or detract from a positive business environment in Scandia. Strongly enhance Neither enhance nor detract Strongly detract Safe environment Shopping/professional services Recreation/entertainment/cultural activities School systems Library systems Highway infrastructure Housing opportunities Local business environment Location Wage rates Cost of living 71. Rate your level of success with the marketing strategies listed below. Excellent Very good Good Fair Poor NA Directory listings (yellow pages, etc) Daily newspaper Weekly newspaper Weekly shopper paper TV Radio Billboards and other signage Window displays Direct mail advertising Web page Email/internet marketing Visitor's guide Magazines Brochures/flyers Referral program Frequent buyer/shopper program Give-aways Donations/sponsorships Word of mouth Other 72. Which of the following market research methods do you use (select all that apply)? Personal interactions/interviews with customers Track customer purchases Response cards by mail Focus groups Census/other data Information from Industry Association Hire market research consultants Other: I don't do market research 73. What are your thoughts on store hours? I am open all the hours I need to be I can't be open more hours for personal reasons I would like to be open more hours, but I can't afford the staff I would like to be open more hours, but I can't find good staff I would be open more hours if I were sure of sales I would be open more hours is everyone else were I have been open evening hours in the past and it was not worthwhile Other: 74. Have you had evening hours in the past? Yes No 75. If yes, how many evenings (past 6pm) per week were you open? 1 2 3 4 5 6 7 76. Why did you discontinue evening hours (select all that apply)? Personal reasons Difficulty hiring staff for evenings Not cost effective Other stores in Scandia were not open evenings Other: 77. Please rate the degree you are experiencing the following challenges in your business. Major challenge Minor challenge No challenge Don't know Poor building condition Conflict with building owner or tenant Expensive rent Product delivery or loading challenges Insufficient financing Internet competition Language barriers Shoplifting or employee theft Vandalism Perception of safety Public using your bathroom Traffic flow/signage Congested streets near your business Road construction Street closure for events Streets not clean Sidewalks not clean Lack of pedestrian traffic Insufficient parking Signage Restrictive business regulations Smoking ban Competition from Forest Lake Other: 78. If financial assistance were available, would you consider building improvements such as facade work or new signage? Yes No Don't know 79. Considering all factors, how would you rate the overall atmosphere in your local shopping area? Excellent Very good Good Fair Poor SCANDIA Staff Report Date of Meeting: April 14, 2014 To: Economic Development Authority From: Kristina Handt, Executive Director Re: County Economic Development Plan Background: Nearly a year ago, the County Board of Commissioners kicked off an effort to identify potential new roles in encouraging and fostering economic development and job growth within the county. The Board engaged a consultant for the development of a strategic plan related to county economic development efforts. As part of the project, extensive community involvement occurred with visits and conversations with elected officials throughout the county, city and township staff members, a number of chambers and local economic development authorities, and individuals from the business community. The County also utilized a workgroup of local government economic development practitioners to guide and review the work of the consultant throughout the project. The final draft county economic development strategic plan was presented to the County Board last month and was the topic at the League of Local Governments meeting on March 31. Before final County Board adoption, the County Board is asking if any of the municipalities have comments on the plan. Issue: Does the EDA have any comments on the draft plan before County approval? Proposal Details: A copy of the draft plan is included in your packet. Recommendation: Staff has no comments. Washington Washington County Board of Commissioners Economic Development Strategic Plan March 18, 2014 Economic Development: A Washington County Strategic Initiative I. Introduction What is Economic Development? Economic development has different meanings to different people. The County Board believes the International Economic Development Council (IEDC) definition is appropriate for Washington County's unique mix of social, geographic, political and economic qualities: No single definition incorporates all of the different strands of economic development. Typically economic development can be described in terms of objectives. These are most commonly described as the creation of jobs and wealth, and the improvement of the quality of life. Economic development can also be described as a process that influences growth and restructuring of an economy to enhance the economic well-being of a community. The main goal of economic development is to improve the economic well-being of a community through efforts that entail job creation, job retention, tax base enhancements and quality of life. As there is no single definition for economic development, there is no single strategy, policy or program for achieving successful economic development in Washington County. Thus the plan laid out in this document is developed from a comprehensive and broad -based perspective. Through implementation of this strategic plan the County anticipates achieving the following short-term goals over the next 1-2 years: 1. Establish a single point of contact for economic development within the County government. 2. Update County tax -increment financing and tax abatement policies. 3. Incorporate economic development impacts and considerations into county decision making. 4. Expand County role in marketing the County. 5. Establish working relationships with state, regional, and local entities working on business retention and growth within the County. 6. Convene practitioners and other stakeholders to address barriers and opportunities and to encourage free flowing communication. 7. Assert a stronger voice at the legislature in advocating for sound economic policies and authorities. This document presents the draft of an Economic Development Strategic Plan for Washington County, Minnesota. The Strategic Plan consists of the following nine sections. Section I Introduction Section II Planning Process Section III Washington County's Economy Section IV County Mission, Vision and Goals Section V Policy and Principles Section VI Strategies, Outcomes, and Structure Section VII Implementation Section VIII Appendices lI. Planning Process The Washington County Board engaged Springsted, Incorporated to prepare a Washington County Economic Development Strategic Plan. The plan focused on the following two elements: 1) Recommend an appropriate expanded role for Washington County including recommending a viable structure for carrying out that role; and 2) Develop high-level strategies for encouraging economic development within Washington County. The County spent considerable time this past year engaged in discussing its role in economic development. The County Board conducted three formal work sessions to discuss ideas, options and opportunities. Feedback was provided to the staff and consulting team to move forward with developing a plan based on the direction from the County Board. Economic Development Work Group An Economic Development Work Group supported the planning process by bringing a wealth of knowledge and experience to the process and providing important local perspectives to the discussion. The Work Group is comprised of economic development practitioners in Washington County from municipal governments and public agency partners such as the Housing and Redevelopment Authority. Members of the Work Group represented a cross section of roles and responsibilities including a mayor, city administrators, assistant city administrators, planners, and community development directors. The economic development study pursued two simultaneous tracks: a community engagement process and data analysis initiative. A brief summary of each follows: Data Collection Springsted retained the services of the University of Minnesota Extension Office to collect, organize and analyze Washington County economic data to develop an understanding of the current status of the economy in Washington County. Two formal presentations were held on the data: Washington County -- Economic Overview (September 2013) and Washington County's Economy and Selecting Industries for Further Analysis (November 2013). Copies of both presentations are on file in the County's Office of Administration. Five of the most essential findings that might have an immediate policy implication are identified in Section 111. Community Engagement The County Board directed that a broad reaching community engagement process be undertaken, including: 1) Interviews and listening sessions with elected officials and other key stakeholders within the community of interest; 2) Gather input from every city; 3) Presentations/discussions to organized groups such as Economic Development Authorities, Chambers, Business Development Commission's; and 4) Facilitated sessions with key stakeholders within a community of interest to identify issues and create the strategic plan. A summary of the stakeholder input is included in the Appendix. The data presented by the Minnesota Extension Office offered a clear picture of the Washington County economic conditions. A summary review of economic data for Washington County finds that the County's economy is healthy. • Washington County is a competitive, job creating economy. The county has experienced steady and strong growth in the number of jobs and weathered the recession well. Washington County had 80% employment growth from 1990-2012 adding 32,000 new jobs. The number of jobs in 2012 nearly rebounded to pre -recession levels of 74,000 total jobs. • Washington County competes very well within the region and the Twin Cities economy. Businesses in Washington County added 24,000 more jobs than would have been expected given national and industry trends. • Washington County is especially competitive and has significantly more jobs in comparison to neighboring counties in Wisconsin. Washington County's employment growth rate exceeded or was on par with neighboring counties in Wisconsin. Washington County maintains a competitive share of employment growth compared to St. Croix County except for manufacturing where St. Croix County has a modest growth advantage. • Washington County is a service -based economy. Washington County's top five largest sectors of employment are Trade (16%): Professional and Business Services (16%); Education and Health Services (14%); Leisure and Hospitality (12%); and Government (13%). • Wages at jobs in Washington County are low, incomes primarily from jobs outside the County are high, and housing is expensive; these trends make affordable work force housing an issue for county leaders. 3 IV. County Mission, Vision and Goals The economic development philosophy, policies and plan are derived from the County's overall Mission, Vision and Goals. Mission Providing quality services through responsible leadership, innovation, and the cooperation of dedicated people. Vision A great place to live, work and play ... today and tomorrow. Goals Washington County has four principle goals: • To promote the health, safety, and quality of life of citizens • To provide accessible, high -quality services in a timely and respectful manner • To address today's needs while proactively planning for the future • To maintain public trust through responsible use of public resources, accountability, and openness of government The economic development strategic plan is but one supporting activity which allows the County Board and staff, cities and public agencies, and the business community to pursue the mission, achieve the vision and accomplish the goals. Economic Development Role The following statement from Washington County's 2030 Comprehensive Plan defines the county's current role in economic development: Washington County's core functions foster an environment where commerce can develop and thrive. The County contributes to a robust business climate by providing well -planned, essential infrastructure; maintaining a low tax rate; and assisting in creating an ample pool of skilled employees. The county strives to maintain the right blend of county services to support a vibrant business sector, be it transportation and transit services, public safety, health and human services, corrections services, workforce housing, or other public services. The county is committed to stewardship of cultural and natural amenities such as land and water resources, parks and open spaces, and libraries which contribute to a high quality of life for business owners and their employees and families. The county's efforts in workforce development provide skilled employees that enable companies to be competitive and successful in the local, regional and global economies. 4 V. Policy and Guiding Principles The foundation of this Strategic Plan is the policy and guiding principles that drive the strategies and goals of the County. The following policy statement and six guiding principles define the County's economic development planning efforts. These guiding principles are relevant for the present economic environment and are subject to review and change on a periodic basis. Economic Development Policy Statement It is the policy of the Washington County Board of Commissioners to strengthen the County's role and increase its support of economic development in the County. The County will invest staff time and financial resources in a planned, coordinated and strategic manner and will engage in a collaborative and holistic approach to economic development. The County's policies and actions will be guided by six principles. Economic Development Guiding Principles The following principles are not in rank order of importance. • The private sector is the lead that drives the economy o The County will work in partnership with the private sector • The County will not duplicate or replace the work of cities and other public agencies o The County will work in collaboration with cities and public agencies and will provide leadership where the County can make the most difference • The County supports a strong collaborative approach to economic development o No matter the location, economic development is a benefit to the entire county o Support efforts to ensure a highly skilled workforce and adequate workforce housing • Business attraction and business retention are essential policy objectives o A balanced approach to pursue each of the two policy areas is required • The diversity of the County requires an adaptable and open-minded approach o The distinctive qualities of the County require flexibility • A deliberate, purposeful and strategic plan is required o The County will take careful and prudent risks to pursue its objectives guided by clear outcomes, and consensus -based policies Vl. Strategies, Outcomes and Structure Economic Development Outcomes The County Board has seven outcomes for this Strategic Plan: 1. Retain a premier quality of life for all of residents 2. Create and sustain living wage jobs across all employment sectors 3. Expand the County's property tax base 4. Be a value-added partner to other public and private agencies 5. Allocate appropriate staff time and resources 6. Affect public policy issues that impact the County's economy 7. Expand the County's knowledge and experience in economic development The Strategic Plan provides a realistic and practical road map for the County. It guides the county leaders and allows them to focus on the most important economic development priorities. Furthermore it directs staff time and financial commitments to those activities that support the County's mission, vision, and goals. Ultimately when the plan is underway and the County has a solid foundation, it will improve accountability and the capacity to measure performance and outcomes. Economic Development Strategies Strategies are essential public policy priorities that precede goals and action steps. Typically they are long-term in nature and are fairly constant in their intent and pursuit. The optimal way to introduce strategies is through the eight functional economic development categories that emerged from the stakeholder input process. The eight categories reflect the marketplace of opportunity for the County and general consensus is to use these designations as the foundation for the strategies. The strategies are not ranked in order of importance.' Each strategy is followed by one to four goals. Goals are a measurable and desired activity, project or purpose that requires resources (time and/or money). Action steps are individual steps and activities necessary to implement a goal, accomplish a strategy, operationalize the mission and fulfill the vision. Specific action steps are continuously evolving and changing as they are completed. The role of local government in economic development must be viewed in both a short and long term perspective. In this, Washington County's first economic development strategic plan, the focus is on short-term actions that support and sustain a long-term investment. As the County's role becomes more secure and established the goals and actions steps will evolve and change. The goals are focused on a one -three year timeframe. This does not prohibit or discourage the County from making changes and adjustments throughout the year. I. Washington County is responsible for many core functions that contribute to a premier quality of life that is important to business growth; economic development resources and investments will advance and support the high standard of living in the County. 2. Washington County recognizes that economic development requires a strong in foundation built on multi -modal transportation networks and access to high-speed broad band networks. 3. Washington County uses economic development financial incentives in a fiscally prudent manner. 4. Washington County realizes that success in economic development is only achieved through a collaborative and inclusive process. 5. Washington County understands that other county -based services impact economic development goals and economic growth. 6. Washington County provides leadership and initiative to shape regional and state-wide policies to support county -wide economic development goals. 1 For additional information and details on each strategy please read the December 12, 2013 and January 28, 2014 County Board documents. 11 1. 7. Washington County supports the value and importance of economic development marketing and branding for existing business retention and growth and new business development. 8. Washington County partners with other public and private agencies to pursue economic development goals. There are 21 identifiable goals. The Goals are not listed in any priority order or ranking. Priorities are established by the letter assigned to each. The ranking is as follows: Letter A One to Six Months Letter B Six to Eighteen Months Letter C Eighteen Months and Longer Washington County is responsible for many core functions that contribute to a premier quality of life that is important to business growth; economic development resources and investments will advance and support the high standard of living in the County. Work plan... uoais Assigned Priority 1. Designate a county staff member to be the point of contact for economic development and implementation of the strategic plan. A 2. Evaluate how economic development factors into the County's 2040 Comprehensive Plan update. C 3. Establish and monitor key economic indicators and benchmarks for the county and the quality -of -life indicators that are most important from a A business perspective. Include in the county's annual performance measurement report. 2. Washington County recognizes that economic development requires a strong infrastructure foundation built on multi -modal transportation networks and access to high-speed broad band networks. Work plan... Goals Assigned Priority 1. Explore public -private partnerships to ensure access to high-speed broad band fiber networks throughout the county. C 2. Consider creating a pool of financial resources for unanticipated land acquisition (e.g. right-of-way) needs for economic development projects. C 3. Continue to pursue multi -modal transportation and transit opportunities that will stimulate economic growth in the county. A 7 3. Washington County uses economic development financial incentives in a fiscally prudent manner. Work plan... Goals 1. Review and update the existing financial incentive policies: tax increment financing and tax abatement. A 2. Explore the creation of a revolving loan program to support business development. A 3. Explore using federal Community Development Block Grant monies for economic development activities. B 4. Washington County realizes that success in economic development is only achieved through a collaborative and inclusive environment. Work plan... Goals Assigned Priority l . Explore the value and purpose of a public/private partnership such as an Economic Development Corporation and how it may complement and C support the County's economic development philosophy and principles. 2. Identify present economic development activities of the Housing and Redevelopment Authority (HRA) and determine what other activities B could be directed to the HRA consistent with their mission. 3. Continue to convene the Economic Development Work Group to address issues of mutual concern and to foster a unified county -wide economic A development approach. 4. Develop a concept paper on the formation of a Community Development Agency (CDA) and present to the County Board. B 5. Washington County understands that other county -based services impact economic development goals and economic growth. Work plan... 1., Review transportation related policies and standards for compatibility and flexibility with economic development goals. A 2. Where applicable, consider economic development impacts in other county -based plans, programs, and services. B 6. Washington County provides leadership and initiative to shape regional and state-wide policies to support county -wide economic development goals. Work plan... 1. Include economic development positions in the County's legislative platform. B n 7. Washington County supports the value and importance of economic development marketing and branding for existing business retention and growth and new business development. Work plan... 15 als 1. , Assess how the County can participate in marketing and branding to ' support the existing efforts underway in other public and private C agencies. 2. Build relationships with existing organizations that focus on job retention and identify how the County can support those efforts. C 8. Washington County partners with other public/private agencies to pursue economic development goals. Work plan... Goals Assigned Priority 1. Partner with the Workforce Development Board and staff to identify and address workforce training and workforce housing needs. C 2. Identify specific economic development training and assistance needs of Washington County communities and determine how best to meet those C needs. 3. Continue the county's policy and funding role in regional economic development activities such as Greater MSP and East Metro Strong. A 4. Work with area chambers of commerce to determine how the county can B help to grow tourism as an economic driver. Economic Development Structure One of the primary goals of this Strategic Plan is to answer the question of what structure best suits the role Washington County should to take. The Work Group and county staff conclude that this will be a process that takes time to mature. Throughout the process two concepts were identified that are important components of the planning process: less formal structure and formal structure. Information on each follows. Less Formal Structure (Public Private Partnership) These models are essentially Economic Development Commissions (EDC) supported by membership dues from private companies and local units of government. They are typically convened and staffed by the interested municipal entity and play primarily an advisory role and advocate for development in the community. Some communities, such as Wright County, assign the entity to evaluate and underwrite their loan programs, but the County Board retains the ultimate authority to approve the allocation of those financial resources. In addition to the private sector business representation, these boards can be comprised of representatives of smaller communities. This allows for these public private entities to pool resources and provide economic development technical assistance to those communities that don't otherwise have the individual capacity. Large communities with more staff and financial i1 capacity use these types of structures more as an advisory board representing private sector business interests. In the case of Washington County, Woodbury and Oakdale use this structure to help develop Economic Development Strategic Plans. Since the primary benefit of this structure is to encourage private sector involvement through board participation and possibly financial support, the question is how could this type of structure benefit Washington County and what are the downsides. Research shows that often counties in Minnesota start to play a role in economic development with this type of EDC structure as a first step. Counties can provide financial resources based on tasks assigned to that entity while retaining final approval authority for specific projects and programs. These structures work well as marketing champions for county wide growth and should not be considered mutually exclusive of a more formal structured approach. The possible downside risk of this approach in Washington County is the current private business community participants, particularly the Oakdale and Woodbury EDC's, could perceive that this is duplicative. In addition, the more this public private model is tasked with direct economic development activities, such as loan programs and technical assistance, the more there would need to be careful consideration given to avoiding duplicating those same efforts currently undertaken by the larger communities and potentially the County HRA. Formal Structure (County Community Development Authority) If the County Board chooses a more formal and active role in economic development, one logical path is to seek any necessary special legislation to enhance the capabilities of the Washington County HRA by essentially adding economic development authority powers. Other jurisdictions have successfully completed similar legislative action and established themselves as "community development agencies" (Dakota, Scott, and Carver), that were originally constituted as housing authorities. Any programming would require careful consideration to avoid duplicating efforts currently undertaken by cities, but obtaining legal authority provides the county access to significant authority and financial resources to encourage economic development. Many of the technical skill sets required for implementing economic development strategies exist within the County HRA. (They also exist in many of the larger communities, but are currently limited to those municipal boundaries.) To be responsive to city needs and county board direction, the HRA could certainly undertake and implement programs (i.e. partner with MCCD for example) as soon as possible as long as those efforts are consistent with current authority, while pursuing the necessary legislative amendment process. A possible downside of the CDA model is the risk of diluting private business sector interests on the board. However, the CDA model can have a board comprised entirely of county elected officials or a blended combination of elected and appointed members. As resource commitments increase with a more active and formal participation in economic development activities, county elected officials may choose to have a more direct involvement on the board. They establish advisory committees organized according to the issues they intend to address. If the Washington County Board chooses to pursue a more formal CDA model and wishes to have more direct involvement with county wide housing and economic development initiatives, the structure could accommodate that desire. One of the principles promoted during this process is for the County to be purposeful and deliberate. If the formal CDA model becomes the objective, it will take time and careful collaboration to complete. 10 Private A corporation formed to develop and sell industrial land Low County control Partnership or and/or provide financing for business development in the mostly all private Non -Profit community. Shares are sold or funds may be raised in other ways. Or could be a 501(c) (4) or (6) organization whose purpose is to promote community economic development. The membership is usually made up of business. Can have paid or volunteer staff. Economic An advisory board, appointed by the Washington County County appoints Development Board. It has limited or no decision -making authority and Commissioners Commission usually serves as a sounding board or as a first point-of- (EDC) contact for the County for development projects. It is often responsible for drafting strategies and policies for ratification and implementation by the County. The commission may be active in implementation of local plans on a volunteer basis. Work can be coordinated by county staff. Economic EDAs were created to facilitate a well-rounded development County appoints Development program by taking advantage of some of the Port Authority Commissioners — if a Authority powers and all of the HRA powers. By combining and 5 member board, at (EDA) utilizing HRA, EDA and County powers, community least 2 County leaders are able to create flexible business assistance and Commissioners must development programs. EDAs for example, are allowed, to serve buy and sell property; make loans and grants to businesses; provide guarantees or other credit enhancements; and to sell bonds. Although Economic Development Authorities were originally designed to meet the needs of cities, special legislation has been granted to several counties to establish economic development organizations, in addition to housing authority powers, or Community Development Authority's. The EDA may employ an executive director and other staff. Housing An HRA is a legal entity created by a City Council, County County appoints Redevelopment or Area to provide a sufficient supply of adequate housing Commissioners; HUD Authority for low -to -moderate income families and individuals. They requires a (HRA) / are also charged with clearing and redeveloping blighted Commissioner to be a Community areas throughout the community. The board may be a participant in the Development citizen's panel, the County Board or a combination thereof. Housing Choice Agency HRAs also have limited powers that may be used for Voucher Program or business development. Special legislation has been used to Public Housing add economic development powers to become a community Program where the development agency (CDA). May require additional staff at HRA acts as Public the HRA. Housing Authority. 11 VII. Implenientatiun Strategic plans are only as effective as the commitment made by all parties to follow-through. Washington County has invested a large amount of time and effort in the assessment, development and adoption of the Economic Development Strategic Plan. The Plan is comprehensive yet realistic. The plan provides the County with four distinct benefits: • A decision -making tool to assist in making policy decisions • A leadership tool to assist in identifying and establishing goals • A management tool to assist in operationalizing plans and determining accountabilities • A communication tool to inform partners and stakeholders about the plans To move the plan into action the County Board will: • Be the champion • Identify expectations • Allocate resources and time • Commit to implementation • Determine levels of accountability • Periodically review the Plan In applying the guiding principle of working in partnership with others the County will seek the input and perspectives of a broad group of stakeholders. The diverse group of stakeholders that contribute to economic development within the County includes large and small businesses, economic development organizations, educational institutions, chambers of commerce, state and regional agencies, and local communities. The County will engage these stakeholders in two primary ways. 1. The County will continue to convene the Economic Development Work Group, a group of public sector stakeholders. The Work Group has successfully established an identity and good working relationships through the strategic planning process. Continuing to engage the Work Group during plan implementation will be critical to the County achieving its economic development goals, avoid duplication of effort, and to understanding how the County can add value to the work of others. 2. The County will periodically convene a group of private sector stakeholders to inform the work of the County and its public sector partners. This group will help County staff and the Work Group to understand the interests and needs of the business community and to identify critical issues affecting businesses and the economy of the County. 12 VIII. Appendices Appendix I Summary of Findings from Stakeholder Input The following information is designed to summarize for the County Board the five most important themes and information learned from the community engagement process. This information is meant to inform, update and educate the Board on the insights of key stakeholders in Washington County. This summary does not attempt nor is it designed to provide every particular insight or opinion shared during the community engagement process. The information is organized into five overall themes. Expand the County's Involvement in Economic Development Washington County's expanded involvement in economic development is encouraged and highly anticipated. The stakeholders believe that Washington County should expand its role in supporting the economic development efforts of the cities. There are some lingering doubts about the County's historical role and past actions, but this perception can be overcome. The County's Diverse Qualities Requires Thoughtful Planning Washington County's stakeholders recognize that the county is very diverse geographically, politically and organizationally. It is well noted that the County Board is challenged to find an equitable and/or a simple economic development plan that can address everyone's interests. Although optimistic and certainly excited about an expanded role for Washington County, the stakeholders are realistic and do not anticipate or expect miracles. This is best stated by Craig Waldron, City Administrator in Oakdale who is on the record noting that, he advises the County to be deliberate and methodical in its approach, or as he states, "walk before you run". Stakeholders Have Distinctive Opinions Washington County's specific role in economic development — and ultimately its strategic plan - requires more deliberate discussion. Testimony at the community engagement meetings was generally more philosophical and strategic. Although opinions exist on matters of policy, priority and structure, we do not offer any trend, indicator or community reflection that leads or points the County Board to any easy answers. Even at the municipal level the testimony of cities differs largely along the lines of cities with experienced personnel and cities that do not have a strong economic development support base within the staff. Business interests also varied in their testimony and input. No Consensus Exists on a Clear Organizational Model Washington County has already identified five different organizational models to deliver economic development programs and services. Throughout our testimony we heard various opinions about what is the best way for the County to organize. We offer to you that no clear consensus -based organizational model came forward from our community engagement process. We discuss structure and roles in greater depth in Section V. 13 Appendix II Summary of City Feedback: Economic Development Survey A survey was sent to each City and the HRA at the beginning of the study. The questions were designed to obtain preliminary input into the economic development study. This information was summarized and shared with the County Board in September of 2013. I. Specific Priorities Please identify the three most significant economic development priorities of your City or organization over the next five years. • Programs administered by HRA at an economy of scale that helps cities and townships • Housing construction • Promotion — marketing for new and existing businesses • Redevelopment -- reinvestment in existing properties • Investment in infrastructure • Development (new) • Jobs and diversity of employment • Linkage between living and working within the county • Coordination of efforts • Business attraction — financial incentives U. County -wide Factors Please identify the top three factors that are impacting in any way (driving or impeding) economic growth and development within Washington County. Driving • Available land • Schools • New bridge in Stillwater • Natural amenities • Strength of existing economy • County changing to a "pro ED" place Impeding • Lack of affordable housing • Lack of transit alternatives • Lack of coordinated strategy • Lack of coordinated infrastructure strategy • County's historical TIF policy (differing perspectives) • Infrastructure flexibility (regulatory restraint) • Shortage of niche financing programs (grants) • Still a slow recovery • Digital divide in parts of county • No policy on tax abatement • No economic development staff • The County is diverse — how can we effectively promote the county as a whole when areas are distinct and different (rural — low taxes) 14 III. Stakeholder Input Please identify who you want included in the stakeholder input steps of the planning process. Your list could be a specific name(s) or a reference to a group or association. • Commercial real estate community • Greater MSP • All levels of local government (schools and watershed districts too) • Variety of market rate and affordable housing developers • Sample of individuals that work in the county but do not live in the county • Communities of color, disabled, and low income population • Two members of city staff and the Mayor • Sample of elected officials • County Board and staff • City staff • Economic Development Authorities • Local business associations • Chamber of Commerce IV. Tools Please identify up to three current tools you are using to support or augment your economic development efforts? • Greater MSP (leads and promotion) • HRA levy • Local income housing tax credit program and Minnesota Housing programs • Met Council LCDA program for land acquisition and pollution clean-up resources • TIF (redevelopment and housing) • Tax abatement • Woodbury Growth fund (revolving low interest loan) • SEED fund • Fast track process and one stop shop • Shovel ready business park • Acquisition of property V. Distinctiveness Please identify one or two considerations that you believe are unique or distinct to Washington County that can be a positive asset to economic development within the county. • Accessibility and location with easy access to MSP, airport and Wisconsin • Land costs (may be higher), but tax environment is competitive • Human capital and workforce • Positive relationship with the county — trust level is in place to accomplish projects • Significant natural areas for recreation and tourism • Significant land supply within distinct communities • Rural and urban character • Fast growing cities VI. Best Practices Please identify one or two economic development best practices that our process should identify and possibly explore. • Level of investment and involvement with Greater MSP 15 • Open for business and gardening programs • Evaluate need for a countywide EDA (role, relationship with cities?) • Incentives, funding, gap financing program • County infrastructure assistance (or policy modification) • Tax abatement policy and strategy • Explore programs and practices that make the County a better option than Wisconsin • County wide marketing campaign VU. Outcomes Please identify two outcomes you want to achieve as a result of this economic development initiative. • Clarity on roles and responsibilities • Consensus on the best program/place to start • Supportive of local economic development — or not disruptive or work against • Recognize and capitalize on the diversity of the cities • Develop one or two useful tools • Greater county role in bringing resources and attention to broadband gaps • Sustained or expanded commitment to infrastructure • Actual project goals (roadways, countywide fiber optics, incentives) • Marketing plan for business attraction 16 1 T. � Yam• •�`� ,�/ . SCANDIA Staff Rep ort Date of Meeting: April 14, 2014 To: Economic Development Authority From: Kristina Handt, Executive Director Re: Thrive 2040 Background: Every ten years the Met Council releases their system plans, which then begins the process for communities to update their Comprehensive Plans. They are currently seeking public comment on Thrive 2040. You can access the entire report at hM://www.metrocouncil.org/Planninp,/Publications-And- Resources/Thrive-for-Public-Review-andResources/Thrive-for-Public-Review-and-Comment.aspxx Issue: Informational Only. Proposal Details: Included in your packet are sections from the Thrive 2040 plan that discuss Rural Centers and Diversified Rural classifications. Scandia is classified as Diversified Rural in Thrive 2040 (same as last time). The section on Rural Centers may fit parts of Scandia pretty well, including the mention of municipally - owned waste water treatment systems, mix of housing densities, commercial service, districts; those items are not really mentioned in the Diversified Rural classification. The section on land use also allows a broader range of densities in the Rural Centers (3-5 units per acre minimum) vs. Diversified Rural (4 units per 40). If the EDA plans to grow in the Village neighborhood zone, they may want to advocate for an expansion of that area as well as a Rural Center classification. Some communities are located in 2 of the area classifications. Recommendation: Prepare for a joint meeting with the Planning Commission later this year. Our rep at the Met Council said it is not necessary to submit comments by the end of the month but the City could request a change at any time, even waiting until the next comp plan process would be acceptable. Rural Centers: Serving the rural area as small town centers of commerce Centers -are -local -commercial, Employment, and residential activity centers serving rural areas in the region. These small towns are surrounded by agricultural lands and serve as centers of commerce to those surrounding farm lands and the accompanying population. Although smaller in scale than urban communities, Rural Centers provide similar development patterns and locally accessible commercial services for the surrounding area. Rural Centers have wastewater treatment�~J services, some municipally -owned and others connected to the regional system provided by the Metropolitan Council. The availability of either local or regional wastewater treatment supports denser land uses and development patterns in these cities and distinguishes them from neighboring rural townships and other small towns. Rural Centers provide a range of services appropriate to serve a limited population within a compact geographical area. Rural Centers generally have a mix of housing densities, strong commercial service districts in a traditional downtown district or along transportation corridors, and residential neighborhoods surrounded by farmland and agri-businesses. Growth in Rural Centers should be orderly and economical so as to best utilize existing infrastructure and investment prior to extension of new services outside of Rural Centers. At times, Rural Centers can connect travelers and residents to other communities in and outside the region , particularly those that are well served by existing transportation infrastructure such as in Scott County along US 169. Largely situated along the edges of the seven -county region, these Rural Centers are often visited by travelers with a destination in another part of the region. This spatial connection to other locations in the region supports the commercial and activity functions of Rural Centers and provides growth opportunities unique to these communities. Based on the draft forecasts and current community designations, the rural area as a whole — including Rural Centers, Diversified Rural, Rural Residential and Agricultural areas=will add 55,000 residents, 30,000 households and 15,000 jobs between 2010 and 2040. This represents growth of 36 percent in population, 57 percent in households and 64 percent in employment over the three decades. The majority of this growth is projected to be located in Rural Centers. These numbers may change during the upcoming comprehensive planning process which will more precisely delineate how much .community growth belongs inside the Urban Service Area and inside each rural designation. Rural Centers are, Belle Plaine, Bethel, , Cologne, East Bethel*, Elko New Market, Hamburg, Hampton*, Jordan, Mayer, New Germany, Norwood Young America, St. Francis*, Vermillion*, and Watertown: . *listed in this designation but also has areas in other designations. DRAFT FOR PUBLIC COMMENT Last revised: February 26, 2014 60 Diversified Rural: Protecting land for rural lifestyles and long-term urbanization - --Diversified-Rural-communities-are-home to -a - variety of farm and non -farm land uses including very large -lot residential, clustered housing, hobby farms and agricultural uses. Located adjacent to the Emerging Suburban Edge of the Urban Service Area, the Diversified Rural Area protects rural land for rural lifestyles today and potential urbanized levels of development sometime a er Large areas of high quality natural resources are located in these communities with some of these natural areas protected in state lands and regional parks, like Carlos Avery Wildlife Management Area in Anoka County and Carver Park Reserve in Carver County. While these communities contain a mix of uses, large portions of communities in the Diversified Rural area also contain prime agricultural soils, located primarily in Scott and Washington counties: Although these communities are not designated Agricultural communities, the Council supports the preservation of agricultural land. Agricultural uses in Diversified Rural communities benefit from their proximity to the Urban Service Area and Rural Centers, but face challenges to their long-term continued use, including incompatible uses developing nearby and increased development pressures. The Council discourages urbanized levels of residential development in Diversified Rural communities to avoid the premature demand for expansion of metropolitan systems and other urban public services. Regional investments in infrastructure, such as roads, focus on rural levels of service, while recognizing the need to include transportation infrastructure consistent with market access and the business needs of the area. Some Diversified Rural communities are also located within the Long -Term Service Area for the regional wastewater system. These areas esignate o ensure an avai a it ty to accommodate rowth ost-2040 at the ed e o t e ur anizing he remaining Diversified Rural communities are considered long-term rural areas. r There is a portion of the region's population that is interested in rural and small town living. For communities in the Diversified Rural area, the Council supports the clustering of homes to meet that demand, but done in a manner that protects high quality and locally -prioritized natural areas and open spaces, and also preserves lands for potential post-2040 urban development. Based on the draft forecasts and current community designations, the rural area as a whole — including Rural Centers, Diversified Rural, Rural Residential and Agricultural areas —rill add approximately 55,000 residents, 30,000 households and 15,000 jobs between 2010 and 2040. This represents growth of 36 percent in population, 57 percent in households and 64 percent in employment over the three decades. The majority of this growth is projected to be located in Rural Centers. These numbers may change during the upcoming comprehensive planning DRAFT FOR PUBLIC COMMENT Last revised: February 26, 2014 61 process which will more precisely delineate how much community growth belongs inside the Urban Service Area and inside each rural designation. Designated Diversified Rural communities are: Afton, Baytown Township*, Belle Plaine Township*, Blakeley Township*, Cedar Lake Towns hi oates, Credit River Township*, - Dellwood,-Denmark-Township! Grant, Grey Cloud -Island -Township, Helena Township*; ------ Independence*, Jackson Township, Linwood Township, Louisville Township, Marine on St. Croix, May Ty ownship, Miesville, New Market Township*, New Trier, Randolph, Randolph Township*, Ravenna Township, Sand Creek Township, Scandia, and St. Lawrence Township. *listed in this designation but also has areas in other designations. DRAFT FOR PUBLIC COMMENT Last revised: February 26, 2014 62 a . k) A TWICE -YEARLY PUBLICATION FOR RESIDENTS �� \ OF THE CITY OF �� SCANDIA, .3 "w""°T" SCANDIA Zero Levy Increase for 2014 For the first time in a decade, there's no city levy increase On September 10, 2013 the Council passed a resolution certifying the preliminary levy for 2014 at $2,171,074 which is the same as the 2013 levy. Cities are required to certify their preliminary levy by September 16, 2013 to the county. The final levy will be set at the December 17, 2013 Council meeting. The final levy may decrease but cannot increase above the amount set in September. In 2014 the City is able to direct more resources towards roads, including $300,000 for a new Local Road Improvement Fund, without increasing the levy due to the savings from the state sales tax exemption, using fund balance to prepay the Fire Hall bonds, competitively bidding out contracts for services such as legal, engineering and auditing and bringing the budget more in line with actual spending history. Only three departments will see their budgeted expenses increase in 2014 over 2013: elections (2014 is an election year and 2013 was not), planning and building (expenses related to Zavoral Mine monitoring will be reimbursed Inside this issue: by the project applicant) and police (approximately 2.8% increase in County contract). The 2014 budget proposes an additional full-time maintenance worker and eliminates the summer part-time Council 2 maintenance worker position. Currently there are three full-time employees, including the Director of Establishes EDA Public Works, responsible for the care and maintenance of 90 miles of local roads. This is double or triple the number of lane miles per employee compared to staffing levels in other cities. Additionally, many of the roads in Scandia were paved in the last 10-20 years. They are now reaching the end of their useful life and New Fire Chief 2 1 require more maintenance. The Council will continue to review whether services can be provided more economically by contracting out work as an alternative to hiring an additional employee. These services include but are not limited to tree trimming, patching, ditching, snow removal and wastewater activities. Improved Vinterfest 2014 Free, Fun Family Events at Scandia Fire Department 2 As part of the budget process the Council is also working on updating the Capital Improvement Plan (CIP) for 2014-2018. The draft CIP includes an electronic data storage system for the Administration Department, equipment replacements, building maintenance items, a new Chiefs car and second fire station for the Fire 3 Department, tennis court reconstruction and Log House Landing improvements for the Parks Department as well as other park improvements that are dependent on grants/donations, and street maintenance Fall Leaves Impact 3 Water Quality Short Takes Community 4 Calendar projects (including Quinell Ave) and equipment replacements for the Public Works Department. The draft budget and CIP are available on the City website under the City Financial Services section. The Planning Commission will hold a public hearing on the CIP at their November 5, 2013 meeting. The City Council will hold a public hearing on the draft 2014 budget on December 10, 2013 at 6:30pm. The public is encouraged to attend both meetings. Like as on Facebook for the Most Up -to -Date Information Economic Development Authority Gets Organized In May the City Council established an Economic Development Authority (EDA) to assist existing businesses, recruit new businesses to Scandia and also look into housing development issues. At their June meeting, the Council appointed Tom Triplett, Greg Isaacson, Bruce Swenson, Sally Swanson and Dan Lee as commissioners to the EDA Board. The EDA held their first meeting in late August to review bylaws, adopt a conflict of interest policy, elect officers, recommend a budget for 2014, set regular meeting dates and discuss future agenda topics. Sally Swanson was elected President, Tom Triplett as Vice -President and Dan Lee as Treasurer. City Administrator Kristina Handt, who also serves as the Executive Director of the EDA, was elected Secretary and Assistant Treasurer. Over the next year the EDA plans to meet monthly to hear from local businesses, meet with members of other EDAs and consultants, study zoning and infrastructure issues, and create a vision and mission statement for the organization. Meetings will be held at the community center and the public is invited to attend. Check out the City's website for meeting dates and times. New Leadership for Scandia Fire and Rescue At their June 18, 2013 regular meeting, the City Council appointed Mike Hinz as Fire Chief for a term beginning July I, 2013 through December 31, 2016. Hinz replaces Jim Finnegan who announced his resignation in late April after moving out of the area. While he may have a new job title, Chief Hinz is very familiar with the City of Scandia and the Fire and Rescue Department. He joined the Fire and Rescue Department in 1992 and since then has served on the Fire Relief Association and as an Assistant Chief in addition to a couple terms as New Scandia Township Supervisor. Hinz holds a number of educational certificates including EMT, Firefighter I and 11, NIMS and Dive Rescue. Chief Hini s goals for the department over the next few years include: increasing fire depart- ment involvement within the community, increasing firefighter training and capabilities, developing a plan to improve efficiencies for reduced spending and budget requirements, and recruiting new firefighters as current members retire. Hinz resides in Scandia with his wife Melanie and works as General Manager at PN Products, which has allowed him to provide a high level of service to the community for a number of years. Other recent appointments within the fire department include Ernie Yoch as Assistant Fire Chief and Ian Skarja and Bill Boyd as Captains. The Scandia Fire and Rescue Department is a group of volunteers organized for the pur- poses of the fighting of fires, education and prevention of fires, the saving of life and prop- erty, and assisting in any medical emergency in the City of Scandia and parts of May Township. New and Improved Vinterfest Planned for 2014 Earlier this summer the public 0 responded to a poll on the City's website about Park and Recrea- tion Committee priorities. Expanded programming during Vinterfest received the most votes. The Park and Recreation Committee responded and is planning a number of new activities for Vinterfest 2014 and recruiting volunteers. On February I, 2014 the Pleasant Valley Cloggers, bonfire and marshmallow roasting, sledding, chili cook off and snow sculpture contest will all be returning. In addition, Roberts Funeral Homes will be sponsoring a hockey tournament fundraiser Friday night and Saturday. On Saturday also enjoy a skiing workshop by Stillwater Award Winning Ski Coaches, Dennis Seefeldt and Bill Simpson followed by a ski loppet and quiz promenade through Gammelgar- den and Lilleskogen Park ending with prizes and treats at Designs of Sweden. Free ski and boot rental including high tech skate skis provided by 45° Stillwater. Mark your calendar! Don't leave town and invite your friends! Be sure to check the City web - site for more details over the next couple months. Free, Fun Family Events at the Scandia Fire Department Annual Open House— Safe Halloween Party— Both events: Scandia Tuesday. October 8, from 5:00 Thursday, October 31, from 5:00 Fire Hall, 15040 p.m. to 7:00 p.m. p.m. to 8:00 p.m. Scandia Trail (Hwy Join the Scandia Fire and Rescue Department for their annual Open House. Bring the kids and learn about fire safety, see the fire trucks and other equip- ment, and meet your neighbors for some fun and food. This is a fun event for all ages. 97) Activities will include a large bonfire, games, hot dogs & hot chocolate. Co-sponsors are the Scandia Marine Lions Club, Elim Lutheran Church, Helke Tree Service and Country Rentals. Fall Leaves Impact Summer Water Quality Managing and disposing of leaves properly will help to improve your lawn, protect your street from flooding, and improve the health of nearby wetlands and waterways. Although leaves and grass clippings are natural, they con- tain high levels of phosphorus. When rain and melting snow carry yard waste off the street and into nearby lakes, rivers and streams, it causes algae to grow out of control. Just five bags of leaves and clippings can grow up to 500 pounds of smelly green algae! When you clean up and compost leaves, seeds, twigs and clippings during the fall, you help to ensure that our favorite swimming holes Short Takes Looking for ways to deter or prevent crime at your residence? There are many simple, easy and fairly inexpensive ways to do so. The Sheriffs Office can conduct a no cost survey of your home and give you ideas. Simply call 651.430.7889 to set up an appointment. Snow is Coming... is Your Mailbox Ready? Before you know it the snow will be falling. Now is a good time to look at your mailbox and landscaping within the right of way. If your mailbox is in and fishing ponds will stay clear and clean next summer. Got a small yard? Rake and bag leaves from your yard and side- walk. Dispose of the leaves by composting them in your yard or bagging them for curbside pick- up. Got a big yard? Rake areas directly under trees and then use your mower to mulch the rest of the leaves into the grass. Mowing is less time intensive than raking and the shredded leaves act as a natural fertilizer for your lawn. Be sure to aim the blower away from the street and driveway or bag the mulch and compost it. need of repair, consider replacing the post with a swing - arm style support. Detailed specifications are available on the City's website or at https:// www.usps.com/manage/know- mailbox-guidelines.htm, which shows the proper installation for a mailbox. Staff will be driving their routes and noting which mailboxes are not to specifications. The homeowner will be responsible for damaged mailboxes that are not to code. Landscaping along the road is another thing to consider. Obstacles may get buried after several snowfalls. Make sure no Got a street? Rake and bag the leaves and debris settled against the curb and in the street in front of your home, as well as any debris covering the nearest storm drain inlet. Left in the street, leaves can clog storm drains and cause your street to flood. The leaves also contribute phos- phorus to nearby wetlands and waterways that storm drains connect to, which contributes to algae blooms during the summer. Remember: Keep leaves and yard waste out of the regular garbage, and never dump them in wetlands or buffer areas — it's illegal! obstructions are in the right of way that a plow driver might hit when pushing back wing rows. Lastly, make sure not to deposit snow or ice within the right of way. It creates a hazard for traffic and City staff; and it is against the law. Your cooperation will be greatly appreciated and make plowing the roads easier and safer. Scandia Compost Registry— Got lawn clippings, leaves, or brush and nowhere to put it? Looking for this type of yard waste for your garden or farm? Last summer the City of Scandia started a Compost Registry. Just call City staff at 651 A33.2274 and we'll play matchmaker. a �_ SCANDIA City of Scandia Scandia Community/ Senior Center 14727 209th St. N. Scandia, MN 55073 Phone: 651.433.2274 Fax: 651.433.51 12 E-mail: mail@ci.scandia.mn.us Hours: Mon. thru Fri. 9 to Noon & I to 4 (except Tues. open until 6) We're on the web! and Facebook City Council: Randall Simonson, Mayor 651.538.4320 Dan Lee 651.433.4309 Chris Ness 651.707.5689 Jim Schneider 651.433.3692 Sally Swanson 651.43 3.3010 Regular Council Meeting: Third Tuesday, 7:00 p.m. Council Work Session: First Wednesday, 6:30 p.m. Planning Commission: First Tuesday, 7:00 p.m. City Staff: Kristina Handt, Administrator Brenda Eklund, Deputy Clerk Colleen Firkus, Treasurer Tim Kieffer, Public Works Director Mike Hinz, Fire Chief Nick Vivian, Attorney Eckberg Lammers Ryan Goodman, Engineer Bolton & Menk Sherri Buss, Planner, TKDA PRSRT STD U.S. POSTAGE PAID Scandia, MN 55073 PERMIT #6 Household Scandia, MN 55073 Community Calendar, October 2013—March 2014 October • October 8, Fire Department Open House • October 13, Lions Pancake Breakfast • October 14, Columbus Day Observed — Office Closed • October 31, Safe Halloween at the Fire Hall November • November 11, Veteran's Day Observed — Office Closed • November 21, Lutefisk & Meatball Dinner, Elim Church • November 22, Turkey Bingo, 7 p.m. • November 28 & 29, Thanksgiving Holiday — Office Closed December • December 8, Lucia Dagen , Gammelgarden • December 14, Lion's Community Breakfast • December 10, 6:30 p.m. Public Meeting, 2014 City Budget and Tax Levy • December 17, 7 p.m., Budget Adoption Hearing • December 25, Christmas Day --Office Closed January • January 1, New Year's Day —Office Closed • January 20, Martin Luther King Day — Office Closed February • February I, Vinterfest • February 9, Lions Pancake Breakfast • February 17, President's Day— Office Closed • February 22, Fireball 2014 March • March 9, Daylight Savings Time Begins For more information and a City meeting calendar, see: www. d. scan d ia, m n. us. For Gammelgarden events, see: http://www.gammelgardenmuseum.org.