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HomeMy WebLinkAbout11-12-13Lakeville Economic Development Commission Strategic Planning Session Nov 12, 2013 3:00- 5:OOPM Joint EDC /City Council Work Session 5:00 -6:00 p.m. Marion Conference Room AGENDA T, (1[�eryie���_ rraig Rapp Review process and expected outcomes. This will include a brief review of the Oct 8 meeting and the agenda for the 5:00PM joint meeting with the City Council II. Key Outcome Indicators A facilitated group process- reviewing the KOI's developed at the October 8 meeting, and identifying any additional KOI's needed III. Strategic Initiatives Brainstorming effort to identify the key initiatives in each priority area to ensure success. They will have accompanying action plans that will be developed by staff following the retreat IV. Adjourn V. Joint EDC /City Council Work Session CRA1G[;ZAPRLLC IMPROVING ORGANIZATIONS & THE PEOPLE WHO LEAD THEM November 8, 2013 To: David Olson, Community & Economic Development Director From: Craig Rapp RE: Next Steps- Lakeville EDC Strategic Plan On Tuesday, November 12 at 3:ooPM, the EDC and staff will continue the strategic planning work that began on October 8. At 5:ooPM, the group will meet briefly with the City Council to discuss the effort. Last week, the EDC received a draft summary of the work accomplished at the Oct 8 meeting, including: (1) the SWOT analysis -which clarified the operating environment and community challenges; (z) the five strategic priorities identified by the group, and (3) the key outcome indicators for each priority. On Tuesday, the EDC will focus on the following activities in an effort to finalize the plan for presentation to the City Council: • Review Key Outcome Indicators. The group will focus on verifying the relevance and appropriateness of the outcomes and targets. Specifically, this means answering the questions: are these aligned with the City's stated priorities (Envision Lakeville), and are they achievable within the timeframe of the strategic plan? • Develop strategic initiatives. A brief brainstorming exercise will be conducted to identify the key initiatives that will need to be undertaken in order to achieve the outcomes identified in each priority. The goal will be to identify 2-3 initiatives for each priority, which will be refined by staff and used as a work plan for the performance period. Discussion with the City Council. At 5:ooPM, the City Council will join the EDC to discuss the strategic plan. The focus of the one -hour meeting will be a presentation of the EDC's work — explaining the rationale for the priorities and the outcomes you are seeking to achieve. The Council will be seeking to understand how the EDC's plan relates to the Envision Lakeville plan. For reference, the relevant section of the Envision Lakeville report is included with this memorandum. A one -page summary of the strategic plan is also included, which reflects a work in progress. When completed, this will serve as a quick reference document for reporting and monitoring results. Increase Economic Sustainability 4 -5 Years Emphasize the attraction of businesses that can provide higher skill, higher wage, head of household jobs. Retain existing businesses and facilitate growth and expansion Provide a broad range of financial incentives to attract businesses that employ higher skilled, high wage jobs. Support the aggressive transportation program that is in place to enhance economic development opportunities. 6 -15 Years Plan and coordinate the proper continued convergence of attraction and financial incentives for commercial, residential and retail development. Conduct a review of development standards in light of changing demographics. Incorporate repurposing for commercial /industrial facilities in long -term planning. 16 -25 Years Plan and program infrastructure upgrades to meet expanded economic development needs. Create a comprehensive program to assist in the redevelopment of commercial and industrial properties. Economic Development Commission Strategic Plan 2014 -2016 Strategic Key Outcome Measure Target Strategic Initiatives Priority Indicator (KOI) High quality jobs New jobs over 200 btwn 1/1/14 - High Quality Jobs $60k 12/31/15 Infrastructure Developer need 95% of time -meets Infrastructure to Leverage needs of developer /busines Opportunities County support Cost sharing County shares cost 90% of time Existing businesses Square footage _ sq. ft. added of expansions 1/1/14- 12/31/15 Business Retention and Existing businesses Employment —jobs added Expansion growth 1/1/14- Existing businesses Retention _% of existing businesses retained New business Leveraged 3 new businesses Incentives and development investment established via Tools to Achieve tools /leverage btwn 1/14-12 11 Success RE Developers Satisfaction w/ _% satisfied -via Creating a city processes survey Existing businesses Business _% indicate good Business Friendly Climate environment place to expand /locate Housing Sites reguided 12 btwn 1/1/14 - for high density 12/31/15 High Density C/I zoned districts C/I districts All C/I zones Housing with hsg changed to permit allowed hsg by 12/31/15 Economic Development Commission Strategic Planning Retreat DRAFT Summary Report October 2013 CRAIG «APP, LLc IMPROVING ORGANIZATIONS & THE PEOPLE WHO LEAD THEM , . CHI AGO: 40 East Chica, Avenue --i4C � I.- 6�-�il - P,11NNEAP0.-1S: - Lake. S,rLe! t;142, fvlinn, �ipoo-� 'Ji, z - 4 T'-'`L F,-"E--: 803- 5- J-365 2 - -11;13r .'crzip zip;).c orn Lakeville EDC Strategic Planning Summary October 2013 Date: November 8, 2013 To: Dave Olson, Community & Economic Development Director From: Craig Rapp Subject: Strategic Planning Summary The following is a summary of the strategic planning session held at City Hall on October 8, 2013 with the Lakeville Economic Development Commission, City Administrator and EDC staff. The retreat focused on establishing strategic direction and focused outcomes. A facilitated process was used that produced a six strategic priorities and a set of key outcome indicators for each priority. Prior to the meeting, each participant was asked to complete a questionnaire - providing opinions on the strengths, weaknesses, opportunities and threats (S.W.O.T.) facing the community and organization. In addition, they were also asked to identify the highest priority issues confronting the city. The group process included three rounds of review and discussion: In the first round, the group identified the most frequently mentioned attributes in each category. In the second round, the groups compared strengths with opportunities and weaknesses with threats- to determine which opportunities would maximize strengths, and which weaknesses would be exacerbated by the threats. From this round, each group identified strategic priorities for further consideration. The full group then engaged in a discussion centered on determining which priorities were most important- based upon both the SWOT analysis and their own sense of community needs. In addition, they considered the Envision Lakeville guidance regarding economic sustainability - listed below: • Emphasize the attraction of businesses that can provide higher skill, higher wage, head of household jobs. • Retain existing businesses and facilitate growth and expansion • Provide a broad range of financial incentives to attract businesses that employ higher skilled, high wage jobs. • Support the aggressive transportation program that is in place to enhance economic development opportunities What emerged is a set of six strategic priorities. The priorities are: 2 Lakeville EDC Strategic Planning Summary October 2013 Strategic Priorities 1. High Quality Job Creation 2. Infrastructure to Leverage Opportunities 3. Business Retention and Expansion 4. Incentives and Tools to Achieve Success 5. Creating a Business Friendly Environment 6. High Density Housing The next step in the process was the development of Key Outcome Indicators (KOI's) for each strategic priority. Key Outcome Indicators are indicators of performance connected to a desired outcome. They are defined or each priority and include specific measures and targets related to a desired end state. The preliminary KO I's developed at the meeting are: Key Outcome Indicators 1. High Quality Job Creation a) Create an additional two hundred jobs with an average salary of $60,000 over the next three years 2. Infrastructure to Leverage Opportunities a) All infrastructure meets or exceeds the needs of over 95% of business prospects. b) County is engaged and supportive of our Economic Development efforts -in their polices and cost sharing for public improvements that impact our projects. 3. Business Retention and Expansion a) Expansion of existing businesses- square footage- target TBD b) Expansion of new jobs by existing businesses- target TBD c) Percentage of businesses retained 4. Incentives and Tools to Achieve Success a) Three new businesses choose to locate /expand based upon leveraged financial incentives 3 Lakeville EDC Strategic Planning Summary October 2013 5. Creating a Business Friendly Climate a) Expedited City approval of certain types of development projects. a. Lakeville is able to increase developer satisfaction levels. b. (Target) ?? b) Completion of satisfaction surveys of new and expanded businesses. a. Lakeville becomes known as good place to locate and expand businesses b. 90% Satisfaction rate for businesses developing in Lakeville. 6. High Density Housing a) 12 scattered sites reguided /zoned for high density housing by 2014 b) Allow high density housing in commercial /industrial zoned districts Next Steps The KOI's require refinement and adoption- primarily finalizing targets -that weren't specified at the retreat. The KOI's will be finalized at the November 7 session. To successfully address the strategic priorities and reach the intended outcomes, a focused work plan will need to be developed. Once the KOI's are finalized, a set of strategic initiatives and detailed action plans will be developed for each - specifying steps, timing and accountabilities. The session on November 7 will focus on finalizing KOI's and brainstorming a set of initiatives to pursue during the performance period. 4 Lakeville EDC Strategic Planning Summary October 2013 Appendices SWOT Analysis Data In order to clarify the strategic challenges confronting the community, the EDC, City Administrator and EDC staff conducted a review of the current operating environment using a SWOT analysis methodology. SWOT stands for Strengths, Weaknesses, Opportunities and Threats. The internal strengths and weaknesses and the external opportunities and threats were assessed. This was done in two parts: (1) in advance of the retreat, all participants completed a SWOT questionnaire; and (2) the group participated in a facilitated process that used the questionnaire results as the basis for analysis and decision - making. The following Appendices contain both questionnaire responses (Appendices IN), and the strategic challenges that emerged as a result of the process (Appendix VI). Lakeville EDC Strategic Planning Summary October 2013 Appendix I SWOT Results - Strengths Most frequently mentioned: • Schools and quality education • Location • Quality of life /community feel/reputation • Options for development • Transportation access and options Aggregate responses • Recognized Statewide and possibly upper Midwest to have a good school district. • Presently experiencing growth in residential units • Access to I35 • Good number of developable industrial /commercial sites • Part of an internationally known region for business /commerce • Geographic Location and proximity to major transportation corridors • Educated work force • Quality schools • Desirable neighborhoods • Location • Schools • Parks • Interstate access • High quality of life • Land availability • Quality of Schools • Fiscally responsible government • Access to major transportation hubs. • Location - proximity to Twin Cities yet suburban feel. • Community - strong values, security and quality • Strong local schools 2 Lakeville EDC Strategic Planning Summary October 2013 • Location • Room for growth and development • Strong community feel • Good schools • Parks • Housing options • Great options for road rail and air! • Resident base - labor force, volunteerism, active community. • Good schools. • Available land for development, zoned and located properly. • Great access to Twin Cities markets and regional markets. • Transportation system is good. • Great balance of commercial / residential and industrial development - SELDOM seen in other communities. • Lakeville is viewed as a great place to live and raise a family. • Large amount of land with sewer /water access • Projected population growth • Easy access to transportation major systems- bus station, hwys, etc • Location to major interstate • Modest but stable industrial park • Quality school district • Parks, trails, lakes, golf courses • Abundant land for development • Geographical proximity to I -35 • Existing partnerships and relationships • Professional staff and stable political climate 7 Lakeville EDC Strategic Planning Summary October 2013 Appendix II SWOT Results - Weaknesses Most frequently mentioned: • Image • Education /Schools • Factors out of our control • Site /building concerns • Workforce • Incentives /Business attraction goals Aggregate responses • Not recognized globally. • Financial challenges within school district • Presently lack support from the county to get a deal done • Limited available buildings • Potential threats to quality schools as a result of insufficient funding • Lack of different styles, types and more affordable housing choices • Lack of a sufficient number jobs that match the education level of average residents • Access to high tech • Development costs and process • Lack of compelling /distinguishing feature that sets Lakeville apart • Lack of incentives for business - what's in our "tool box ". • Citizen's survey - only 32% said employment opportunities in Lakeville were good. • Citizens survey - 75% indicated job growth too slow • Citizen's survey - 72% indicated jobs were essential or very important for the future. • Lack of retail development. • Low profile - unknown benefits • Reputation of high costs to develop land commercially • Reputation of being difficult to move the process along in development of both commercial and residential. • Lack of diversified housing - primarily entry market and apartments. • No defined economic development incentive plans / tools. • Perceived by real estate and TC business community as "way out there." Lakeville EDC Strategic Planning Summary October 2013 • No land zoned for high density residential • High cost of doing business in Lakeville • No densely populated cities south of Lakeville • No policies in place to financially assist potential development • Not willing to provide infrastructure to encourage development such as roads and utilities • Inability to attract businesses (competition) • Incentives • Focus on who we want to be /or what business types we would like to attract • Perception of being "too far out" geographically • Lack of ingenuity and too much risk aversion • Slow to adapt to change 9 Lakeville EDC Strategic Planning Summary October 2013 Appendix III SWOT Results - Opportunities Most frequently mentioned: • Educate community, city staff and business partners on how best to encourage economic growth • Promote high skill jobs, education and housing options • Continue to pursue redevelopment of existing commercial /industrial /housing areas • Continue to promote commercial and industrial growth by providing necessary tools • Promote airport expansion • Redevelopment of downtown Aggregate responses • Developing the most efficient economic development, local government department in the upper Midwest. • Continuing to turnover committee members. • Educating the city on how Lakeville is positioned within a robust region and how that translates into activity. • To attract additional higher skilled and high wage job to the community • To continue to pursue redevelopment opportunities for the redevelopment of Downtown properties • To offer incentives, financial and otherwise, to businesses willing to create head -of- household jobs • To work with residential developers to provide a wide range of housing choices • Availability of sites • Access to the twin cities • Access to interstate • Expansion of usage of local airport. • Increase the variety of housing options available including work force housing. • To attract high quality business to our community. • To foster growth of current business partners. • Get crystal clear on what we want to be in the next 10, 20 and 30 years and make sure we are willing and able to attract the right businesses to complement that vision. What will County Road 70 look like in 10 years? • Get the runway at the airport extended. • Existing Industrial and commercial base to build from. (Expansion of existing businesses and engage them to recruit others - vendors, competitors, etc.) 10 Lakeville EDC Strategic Planning Summary October 2013 • Desire of young people to want to live and work here. Let's get them suitable and affordable housing stock. • Engaged City Council and elected officials who REALLY want what is best for Community in the long run. • Staff is also engaged and enthusiastic - but need the tools and room to work opportunities. • To utilize the EDC and Lakeville's "Thrive" marketing program to promote our town! • High density housing • Business park growth • Industrial park growth • Higher education facilities • Business growth (land mass) • Raw land available to meet business growth plans • Quality of life (Parks, Lakes, trails, etc.) • Growing /maturing business relationships • Capitalize on fast residential growth 11 Lakeville EDC Strategic Planning Summary October 2013 Appendix IV SWOT Results- Threats Most frequently mentioned: • A lack of existing robust infrastructure (fiber, roads, etc.) • Focus on retention of existing business • Development related costs (fees, taxes, etc) • Not having a streamlined process • Highly incentivized business climate Agg_re at�ponses • Not looking to change /re- evaluate. Becoming static. • Comparable cities in the region competing for the same business development projects • Another housing bubble burst • Insufficient funding for needed state and county highway improvement projects • An unwillingness to fund "quality of life" type facilities, infrastructure improvements and programs at the local level • Incentives used by other communities • Land cost • Budget policies, economic policies and financial policies that are enacted by our county, state and federal governments that will impact Lakeville's ability to thrive. • Loss of existing businesses. • Less than attractive state tax structure. • Over protective local attitude • Economic challenges • Workforce needs and external pressures to develop housing based on current /short- term strategies. • Slow process to react to opportunities. "Always starting from scratch." • Empty bag of business incentives available to new inquiries and existing business expansions. 12 Lakeville EDC Strategic Planning Summary October 2013 • A changing tax / city operating budget - higher costs, higher maintenance can lead to higher taxes, and inability to draw new businesses. • Cities that surround Lakeville that are closer to the metro that draw on a population base to promote commercial /industrial growth • High cost of doing business in Lakeville -city fees, infrastructure costs, low density development • Incentives neighboring cities are offering • Business leaving the state • Taxes • Road systems - keeping pace with growth • Lack of competitiveness • Stagnation /lack of uniqueness • Political change /instability 13 Lakeville EDC Strategic Planning Summary October 2013 Appendix V Highest Priorities - from Questionnaire Responses • Increasing the operating budget • Building capacity so that on a moments notice, a deal could be executed. • Staff participate in a national recruitment trip. • To continue to aggressively market the City for business development • To work with local, regional and state partners to provide appropriate incentives for business development projects that meet the City's economic development vision and goal. • To continue to advocate for funding for needed county and regional transportation improvement and expansion projects Lakeville • Technology upgrades • Tax climate • Transportation • Develop marketing tools and financial incentives that will place Lakeville as one of the first communities that developers, site selectors and business owners will look at locating. • Develop business incentive tools to help revive and attract new business opportunities • Remain attractive to existing business with local tax structure • Raise profile of Lakeville's reputation to help attract new business formation • Put the "Tools" in our toolbox to work for us in attracting some major tenants in Lakeville. • County Rd 70 development • Development around 35 and Cnty Rd. 70. • Create a plan and process to be "The number one choice" as a place to locate or expand a business. • Identify a way to respond to business inquiries, in their language, and reacting to their needs, on their timeframe. • Create an incentive model that studies ALL impacts of a project and potential incentives to create a more consistent and productive process for the client and the City of Lakeville. • High density housing 14 Lakeville EDC Strategic Planning Summary October 2013 • Policies to promote commercial industrial growth • Get word out to development community that Lakeville is OPEN for business • Strengthen Incentives for businesses • Become business friendly • Fill toolbox • Strengthen marketing (Products) • Be Pro - active. Don't wait for the businesses to come to us. • Refine Lakeville's "brand" and continue marketing /relationship building • Increase head of household jobs • Facilitate new office park development and development ready industrial park sites 15 Lakeville EDC Strategic Planning Summary October 2013 Appendix VI Strategic Challenges and Opportunities The group assessed how organizational strengths could leverage opportunities and how weaknesses could be exacerbated by threats. This provided a context for the leadership team to establish the six Strategic Priorities STRATEGIC ISSUES TO MINIMIZE /AVOID • Cost of development (combines both external and internal issues) • Image /perception (combines an external threat w/ issue that can be addressed via internal action) • County's negative impact on development (external situation which impacts /limits success) STRATEGIC ISSUES TO MAXIMIZE • High quality /high skill /high tech (leverages good schools /quality of life) • Housing density /diversity (leverages transportation options /access) • Educate community regarding economic development (leverages motivated & skilled staff, EDC) • Economic development incentive toolbox (leverages motivated & skilled staff) • Match infrastructure with goals 16