HomeMy WebLinkAbout03-23-99 CITY OF LAKEVILLE
ECONOMIC DEVELOPMENT COMMISSION
MEETING MINUTES
March 23, 1999
Members Present: Brantly, Detjen, Erickson, Matasosky, Miller, Pogatchnik, Schubert,
Tushie, and Vogel.
Members Absent: Emond (excused)
Staff Present: Robert Erickson, City Administrator; Michael Sobota, Community &
Economic Development Director; and Rita Erpelding, Economic
Development Coordinator.
Guests: David Piggott, Executive Director of Metro East Development
Partnership, and Steve King, Executive Director of Dakota County
Economic Development Partnership
1. Call to Order. Chair Vogel called the meeting to order at 6:02 p.m, in the
Administration Conference Room at Lakeville City Hall.
• 2. Approval of the January 26, 1999 Meeting Minutes.
99.06 MOTION: Comms. Brantly/Detjen moved to approve the January 26,
1999 meeting minutes. Motion carried unanimously.
3. Strategic Plan: External Analysis-Phase One: A Critical Review of the
1997-1998 Strategic Plan and New Opportunities
Chair Vogel began by providing background on the history of EDC strategic
planning activities. He stated that the first 2-year Strategic Plan for Economic
Development was developed in 1994. The EDC then prepared the second 2-year
Strategic Plan in 1996. The EDC is now beginning another strategic planning
update process. As part of the update process, the EDC is bringing in outside
presenters over the next three months. The information that is gathered from
these sessions will be background for a retreat that will take place in August or
September. In order to assist the EDC with the retreat, Chair Vogel requests that
issues be identified and issue statements be written.
Chair Vogel then stated that this first evening two guests have been invited to
focus on critiquing our current strategic plan. Mr. Piggott and Mr. King were
invited to focus on issue areas that are not identified, their impressions, and how
the EDC's strategic plan would mesh with their organization's goals. Chair Vogel
• then introduced Mr. David Piggott of Metro East Development Partnership
(MEDP).
Lakeville Economic Development Commission March 23, 1999
Meeting Minutes Page 2
• Mr. Piggott stated that MEDP has just recently adopted their three-year strategic
plan. In order to ensure a concrete method of measuring success, their strategic
plan has actual numeric goals. The MEDP strategic plan has four objectives:
1. Expand the economic base of the Metro-East three-county region-The
focus of MEDP is on achieving a capital investment of $65 million in new
commercial/industrial building construction. Although MEDP is moving
away from job creation goals because of the tight labor market, they still
have a goal of creating 1,250 quality jobs. Quality jobs are defined by
MEDP to be those with a wage fifty percent greater than the livable wage,
which equates to about $12 per hour. MEDP's strategic plan also sets a
goal of concluding 2 projects with companies new to Minnesota. Their final
success measure is having a 20 percent closure rate with prospects.
Although this goal may seem high considering that economic development
closure rates are typically 10 percent, MEDP traditionally has a closure rate
of about 17 percent.
2. Utilize the region's financial and business resources to assist business
growth--MEDP wants to ensure that its member financial institutions,
construction companies, and professional service companies are provided
an opportunity to bid on projects. MEDP also wants to increase the number
• of inquiries that it refers to its economic development partners.
3. Create an awareness That the Metro-East Three-county region is a
profitable place to conduct business-MEDP set a goal of 250 requests for
assistance from expanding business, 50 inquiries from out-of-state
businesses, and 10 inquiries via technological resources. In addition,
MEDP is focusing on coordinating some out-of-state trade shows to market
the region.
4. Maintain a high level of satisfaction with our stakeholders and clients-
MEDP will limit investor turnover to less than 5 percent, convert 3 former
clients into investors, and expand the investor roster by 10 members.
Mr. Piggott then began his critique of the EDC Strategic Plan. Mr. Piggott first
focused on workforce issues by providing ideas on ways that the City could
provide support for local businesses. Mr. Piggott mentioned that Chippewa Valley
Technical College in Menomonie, Wisconsin, built a training center in the Stout
Technology Park. The training center provided classrooms and hosted training
opportunities for their local businesses. Mr. Piggott stated that a similar type of
training center in Airlake Industrial Park would be an attraction for new
businesses and demonstrate that the City is aware of the issues of labor and
training. The construction of a training center may also open up additional
funding from both the state and federal government.
Lakeville Economic Development Commission March 23, 1999
Meeting Minutes Page 3
. Mr. Piggott continued his focus on workforce issues by suggesting a closer
relationship with local high schools. An example was given from Baraboo,
Wisconsin, where many of the local plastics companies provided their old
machines to the high school. These machines were utilized to teach a shop Gass
that primarily focused on plastic extrusion. The companies benefited because
many of the students understood the industry, had an interest in working for the
companies, and had the skills necessary to enter the workforce for plastic
extrusion.
Mr. Piggott then focused on financial incentives by citing what River Falls has
done to promote business development in its industrial park. The City purchased
industrial land and sold it at half cost to the businesses with the other half of it in
the form of a loan. As part of the loan agreement, the business must agree to a
minimum assessed value for a term of the loan and to create a set number of
new jobs by the end of five years. If both of these goals were met then the loan
was forgiven. If the terms were not met, the company was required to pay the
City the half of the land price subject to the loan. The program was a benefit to
the business because they were able to defer land cost funds to finance
equipment and their growth. Mr. Piggott did state that it sometimes was a
challenge politically, however they tried to focus on stating the taxes being paid
and that the only cost was really the cost of the land.
• The focus then turned to retail development. Mr. Piggott stated that Lakeville is in
a difficult position. Since the City is so large, some type of retail development will
be necessary, however the question remains where retail would be located. In
his opinion, there really is no room in downtown. If it is located near Apple Valley
and Burnsville, then what happens to downtown. One possibility may be some
type of niche market for downtown retail.
Mr. Piggott stated that Lakeville still needs to overcome the perception of the City
being a fringe community. He stated that prospects respond to Lakeville as being
"way down there", even though it isn't. Marketing is the way that the image will be
changed. The marketing materials should focus on how close it is and how well
connected Lakeville is to the metro area with good transportation links.
Mr. Piggott's final focus was on housing. Mr. Piggott felt that Lakeville has a nice
mix of housing types. The only area that might be lagging is multi-family housing.
The easiest and most beneficial type of multi-family housing probably would be
senior housing. It is good for the community because it allows people who have
lived in Lakeville to remain in the community, which strengthens community unity.
The addition of senior housing would also help in complying with the Livable
Communities Act.
Chair Vogel asked how the addition of senior housing would assist or tie together
with commercial/industrial development, especially since it does not really add a
• labor force. Comm. Tushie stated that senior housing does tie in because when
Lakeville Economic Development Commission March 23, 1999
Meeting Minutes Page 4
• seniors move out of their existing homes it frees up their houses for families.
Most of these houses will be in the lower price ranges. In addition, senior housing
allows long-time Lakeville residents to remain in the community and provides life
cycle housing opportunities. Mr. Piggott added that senior housing can also be
upscale housing options like townhomes. In addition, Mr. Piggott stated that the
new market rate apartments being built are not really affordable for new industrial
employees. Many apartments are in the $900+ per month price range, which
means that most would be better off just purchasing a house. Thus, additional
housing in the $120,000 range would provide the affordable housing to support
the growing labor force.
Comm. Brantly asked whether additional help is needed for low income
individuals to purchase a home. Mr. Piggott stated that in his experience there is
existing money that is going unclaimed. Comm. Tushie asked whether it was
because people do not know the funds are available. Mr. Piggott stated that he
thought that for the most part people do know. Even if they do not, it is difficult to
justify spending additional dollars to market the money available. He believes
that the lack of participants in these programs may be the result of too stiff of
requirements. For example, if the limit was that the house must cost under
$100,000, it would be difficult for people to find that type of housing in Lakeville
except a few in the downtown area. There are areas with pockets of that type,
such as in Oakdale, North St. Paul, and parts of St. Paul.
• Chair Vogel asked whether there were issues and ideas that Lakeville could
borrow from MEDP's strategic plan. Mr. Piggott stated that MEDP is trying to
create a "rapid response" team for MEDP and in each community. MEDP's goal
is that MEDP staff would meet with a prospect and within a week they would
have a complete picture of what the prospect needs and where those needs
would be met. MEDP staff would use this information to narrow down the search
to three communities for the prospect and then arrange a meeting with the
community representatives. MEDP would like these meetings to consist of all of
the individuals needed to respond to the prospect's questions. It may include
utility, police, superintendent of schools, etc. MEDP's goal is that the prospect
would leave the meeting with all of the answers to their questions or with the
name of an individual who can provide answers within 24 hours. MEDP believes
that a "rapid response" team such as this would promote to the prospect that the
city is "business friendly."
Mr. Piggott stated that Lakeville's website does a good job of providing the
necessary information. Mr. Piggott questioned whether it would be possible to
have an "economic development" query button which would allow a user to
directly send their questions to a member of the economic development staff.
City staff responded that they would examine the possible addition to the City
website.
Lakeville Economic Development Commission March 23, 1999
Meeting Minutes Page 5
Chair Vogel then created a summary of the issues discussed. The following is a
copy of the chart that was created:
Issue Statement
Workforce Innovative training, possible on-site co-op with
DCTC.
Tech Prep Co-op with high school-maybe have businesses
donate old a ui ment.
Incentives Ex lore cit loan and write down art of land cost.
Retail Ex lore niche market for downtown.
"Erin a Ima e" Tell of excellent trans ortation & access
Housin Use HRA to build senior housin .
Target "RFP's" Get ready to make big-quick presentation to
to eted leads from MEDP.
Res nse Team Have a res onse team that can sell Lakeville.
Web a e Quick "Dick" to a ro date de artment.
Res onse to RFP Kee ualit we have.
Sense of community Try distinguishing us from other cities, appeal to
all demo ra hic rou s.
After thanking Mr. Piggott, Chair Vogel introduced Steve King of Dakota County
Economic Development Partnership (DCEDP). Mr. King stated that he has been
continually impressed by the City of Lakeville. He appreciates the City's ability to
proactively identify problems and their solutions. In addition, the City's foresight
in identifying potential solutions enables solutions to be put in place as issues are
• identified. This stress on early detection of future problems is important in the
constantly changing field of economic development. Mr. King noted that it used to
be that jobs and taxes were the two most important issues. Today those two
issues have really taken a back seat to job retention and the creation of a
qualified and trained workforce.
Mr. King stated that one reoccurring theme that he saw in the strategic plan was
communication. He too believes communication to be vital and encourages
multiple forms of good communication. He knows that Lakeville effectively utilizes
many forms including Airlake Park News and the cable television shows.
Mr. King stated that if Lakeville was going to focus on any one area, he would
recommend affordable housing. The creation of additional affordable housing will
have a direct influence on the success of the business creation and retention
programs of the City.
Mr. King indicated that improving the quality of workforce should also be a
primary focus. The Career Jamboree that was held in February was a great start.
During his participation in that program he saw what an impressive facility the
Lakeville High School is and suggested that it would provide a great resource for
training. He recommends a partnership be formed with the school district, City
and business community. Mr. King also stated that the City should encourage
• continued business involvement in school activities.
Lakeville Economic Development Commission March 23, 1999
Meeting Minutes Page 6
• Mr. King stated that maintaining a mix of retail, commercial, and industrial will
assist with the creation of a balanced community. Mr. King mentioned that there
are issues with transportation and suggested continued examination of potential
solutions, including light rail.
Mr. King agreed with Mr. Piggott stating that as retail development increases, the
City needs to be careful that the downtown does not get lost. Mr. King also
agreed that niche retail marketing may be the solution. In conjunction with the
downtown, Mr. King recommended that continued preservation and promotion of
the historic, natural, and recreational areas. He mentioned that there may be
opportunities for additional tourism marketing and that the continued preservation
and promotion would benefit businesses.
Mr. King then stated that DCEDP is putting the final polish on their strategic plan.
In the past, DCEDP has primarily focused on infrastructure such as the GIS
system, Dakota County Capital, and the Enterprise Facilitation program. DCEDP
is now beginning to move away from infrastructure and has identified the
following four objectives in their strategic plan:
1. F~cpand membership and improve participatory involvement-DCEDP's
major focus will be on the development of private sector membership
because they are needed to assist in the identification of issues and their
solutions.
• 2. Design and coordinate implementation of a strategy to address
employment recruitment, training and workforce development-DCEDP will
work on a number of initiatives to support this objective. DCEDP is in the
process of hiring a consultant to interview Dakota County businesses to
identify their training needs. DCEDP also continues to work on encouraging
seniors to go back into the workforce, developing partnerships to work on
school-to-work, and improve marketing of workforce programs & resources.
3. Improve the effectiveness of business retention and development
programs-DCEDP is bringing Together local city staff, chambers, HRA,
and others. DCEDP would like to see a type of human resources think tank
be created in Dakota County. Mr. King suggested that it would be modeled
after a similar program done in Burnsville which brought together
professionals from the business community to discuss their ideas for
employee recruitment and retention.
4. Promote communication, cooperation, and coordination by raising
awareness of development issues and opportunities-DCEDP will be
expanding their communication by a newsletter which will be sent to
members and manufacturers. DCEDP will continue to work with cities to
enhance their communication and outreach efforts.
•
Lakeville Economic Development Commission March 23, 1989
Meeting Minutes Page 7
• Mr. King ended his analysis by stating that Lakeville has a unique approach to
economic development. Mr. King noted that strategic planning and a willingness
to bring in outside resources and explore issues are examples. Chair Vogel then
created the following summary chart of Mr. King's analysis:
Issue Statement
Focus Keep business involved and constantly
communicate mission.
Flexibility Keep plan "open" so we can adapt to change
uickl .
Communication Extend using common facilities rather than
Infrastructure individual ex ensive connections.
Airlake is Small City Possible video conference center or other
services necessa for inhabitants.
Specialized Space Hard for companies to build & maintain education
and other occasional uses ace.
Soft "issues" Promote amenties that se arate use from others.
Affordable housin Need to find wa to rovide.
Trainin needs Define what the are Ian ua e, culture, etc.
Communication Between cit -business-em to ees-communit .
Em to ee-Needs Da care, Etc.
Comm. Brantly asked whether there were any glaring omissions in the strategic
plan. Mr. King stated that he really could not see any. He felt that the strategic
plan was a broad brush that allowed the EDC to keep pace with the changing
• field of economic development. Mr. King recommended that the City not rush into
development, do it wisely, and not become incentive happy.
Mr. Piggott stated that it seems that the plan mentions, but does not really
address specifically, the recruitment of high-tech companies. The EDC needs to
determine exactly what is meant by high-technology and what amenities
Lakeville has that differ it from surrounding communities. Mr. Piggott also stated
that the City could look at developing campus-like settings such as what State
Farm has in Woodbury. Lakeville is poised for this type of development because
of the large amounts of land, good access, and ability to draw a large labor force
from south of the Twin Cities.
Mr. Erickson stated that in a strong economy, such as what we have now, the
strength and importance of strategic planning is not really seen. Mr. Erickson
then asked the participants how they felt Lakeville would fare in a bad economy.
Mr. Piggott stated that Lakeville would continue to grow but at a slower pace. Mr.
Piggott also believes that he can see how well Lakeville is prepared by the high
quality of its responses to MEDP's RFPs. Mr. Piggott acknowledged that people
do not realize Lakeville is growing because there is a plan. They will see it if
times become bad. Mr. King added that "any turkey could fly in a high wind." Mr.
King stated that Lakeville is well prepared and that it will fare well in the future no
matter what the economy if the City continues along this path of strategic
• planning.
Lakeville Economic Development Commission March 23, 1999
Meeting Minutes Page 8
• Comm. Brantly asked how industry is set for the future and what role can the City
play in their continued success. Mr. King stated that is important to keep abreast
of the changes. He sees that the main challenges will be productivity, training,
and the recruitment of a qualified workforce. Comm. Brantly stated that the
difficulty for both older and newer companies is that the life cycle of a product is
so short. Mr. Piggott asked whether the industrial park and community was wired
for fiber optics. Mr. Sobota stated that the process has begun but that in general
most companies are not yet connected. Mr. Erickson added that it might not be
cost effective to wire the entire park. Maybe having conference rooms in a central
building would be the best method of meeting the needs of business. Comm.
Tushie added that even MNDOT is looking at fiber optics and teleconferencing in
order to reduce the amount of commuting. Comm. Matasosky also stated that the
existence of a facility would assist with business retention, training of the
workforce, and assisting businesses with upgrading technology. Chair Vogel
thanked Mr. King for his observations.
4. Update on Strategic Work Plan Activities.
Mr. Sobota stated that the Medical/Health Care Subcommittee has not yet been
called to meet. Staff expects the subcommittee to meet in the near future to
examine selection process and criteria. Mr. Sobota stated that City Staff is now
working with a broker on a potential clinic for Lakeville. The broker has indicated
that the client would be interested in meeting with the subcommittee. The staff
• would also like to see representatives from Trinity Hospital in Farmington
included in the subcommittee meetings.
Mr. Erickson took a moment to alert the EDC on a discussion which took place at
a retreat for Apple Valley, Lakeville, Farmington (ALF) Ambulance Service. Mr.
Erickson stated that ALF is now often being directed to other hospitals because
Fairview Ridges is often at capacity and can not meet the needs. Mr. Erickson
mentioned that Fairview Ridges has fallen two to three years behind in their
building process. Mr. Erickson stated that this diversion to other medical facilities
has not been well received by patients. In addition, Mr. Erickson feels that this
could have an impact on Lakeville's quality of life. Mr. Erickson has started to
hear concerns from residents. Mr. Erickson sees this as the time to be
aggressive in Lakeville's pursuit of a medical facility and it may be an opportunity
for Trinity Hospital.
Comm. Tushie asked whether Lakeville is too close to have its own hospital. Mr.
Erickson stated that to some degree he believes we are too close. Comm.
Erickson stated that Allina, which is part of United Healthcare, is in the process of
negotiating with Northfield for a hospital site. Comm. Miller agreed stating that he
had recently heard 2000 as a potential target date for construction. Comm.
Brantly asked if the Northfield site would be as close as Fairview Ridges. Mr.
Erickson stated that it would be north of Northfield so that it would be in Dakota
County and could take advantage of medicare reimbursement. Mr. Erickson
Lakeville Economic Development Commission March 23, 1999
Meeting Minutes Page 9
suggested that the subcommittee ask Fairview Ridges to explain their position,
especially since they have moved some of their basic care facilities out of
Lakeville. Mr. Erickson also suggested that the City work to assist Trinity
Hospital.
Mr. Sobota stated that the Joint Staff Workshop on the Commercial/Industrial
Development Review Process will be held on April 6th. The agenda, which was
included in the EDC packet, is focused on devising strategies to
improve/streamline the development review process.
Mr. Sobota stated that the Airlake Park Landowners Meeting on the South Creek
Trout Stream would be held on April 8th from 7:30 to 8:30 a.m. The meeting
agenda, flyer, and a draft letter were included in the EDC packet. The EDC
requested Comm. Pogatchnik to call DNR hydrologist Pat Lynch and ask them
not to attend so that business owners would be able to "catch up" on the issues
related to South Creek. Comm. Matasosky asked staff to add a phrase to the
draft letter stating that the designation was by the DNR through a court order and
that the city and community have been working to study that designation. City
staff is also continuing to work on gathering details on the Trunk Storm Sewer
Area Charge and Fund. City staff expects that more information will be provided
at the next EDC meeting.
• Mr. Sobota stated that the results from the Ideation Workshop for the Gateway
DesignlLandscape Corridor Study were included in the packet and were sent out
to all of the participants. City staff has received the draft guidelines and are
reviewing them. Mr. Sobota stated that results of the Ideation Workshop and the
draft guidelines have already been utilized on future road projects. On the County
Road 5 project, the County accommodated the City's request for terracing and
allowed the City to choose the color of the keystone that would be used. The
walls will be built in the next two months.
Mr. Sobota stated that a draft workplan for the Financial Incentives Study has
been put together. City staff expects the subcommittee to meet in the near future.
Comm. Matasosky stated that the subcommittee needs to address other needs
and incentives that can be offered besides financial. Mr. Sobota stated that the
subcommittee would examine a variety of incentives.
5. Staff Activities Report
Mr. Sobota provided an update of the staff activities by briefly mentioning those
identified in the memorandum included in the meeting packet.
Lakeville Economic Development Commission March 23, 1999
Meeting Minutes Page 10
• 6. Other Business. No additional business.
7. Adjourn. The meeting was adjourned at 8:16 p.m.
Respeyctively submitted by: ATTESTED TO:
~ l.~ ~
Rita Erpel ng, Rec ding Secretary R.T. Brantly, Secretary
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