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HomeMy WebLinkAbout04-27-99 CITY OF LAKEVILLE ECONOMIC DEVELOPMENT COMMISSION MEETING MINUTES April 27, 1999 Members Present: Brantly, Detjen, Emond, Matasosky, Miller, Pogatchnik, Schubert, and Vogel. Members Absent: Tushie Staff Present: Robert Erickson, City Administrator, and Rita Erpelding, Economic Development Coordinator. Guests: Cal Clark, Economic Development Director-Minnesota, Peoples Natural Gas 1. Call to Order. Chair Vogel called the meeting to order at 6:04 p. m. in the Administration Conference Room at Lakeville City Hall. 2. Approval of the March 23, 1999 Meeting Minutes. • 99.07 MOTION: Comms. Detjen/Brantly moved to approve the March 23, 1999 meeting minutes. Motion carried unanimously. 3. Strategic Plan: External Analysis-Phase Two: Labor Force Trends, Implications, and Recommendations Ms. Erpelding stated that the focus this evening would be on the labor force. Ms. Erpelding stated that Mr. Cal Clark was invited to share with the EDC his perspective on current and future labor force trends. Mr. Clark is the Director of Economic Development for Peoples Natural Gas, which is a subsidiary of UtiliCorp United. Mr. Clark was also a part of the Citizens League committee which recently released the research report titled "Help Wanted More Opportunities than People", which was included in the EDC packet. Mr. Clark began with a brief overview on UtiliCorp United and Peoples Natural Gas. UtiliCorp United has operations in the United Kingdom, Canada, Australia, New Zealand, and the United States. In the United States, UtiliCorp United serves eight states under a variety of names. Peoples Natural Gas is one of those operating divisions and serves much of Minnesota. Mr. Clark stated that he works with over 160 communities to help them achieve their own economic development efforts. Mr. Clark is a broker of information . regarding financing options, work force, training, and real estate. UtiliCorp United's LocationOne Information System (LOIS) provides customized state Lakeville Economic Development Commission Aprii 27, 1999 Meeting Minutes Page 2 comparisons on over 150 business climate factors, information on available sites and buildings, and customized promotional profiles that can be utilized for local economic development efforts. Mr. Clark stated that UtiliCorp United also offers cooperative marketing assistance, a scholarship program for economic development training, strategic planning and consultation, and assistance with infrastructure issues. Mr. Clark stated that the content of his presentation would be available at the end of the meeting. His comments have been attached as a summary of his presentation. In addition, Mr. Clark handed out the attached information about Industry Clusters. During Mr. Clark's presentation a number of discussions related to his presentation took place. Mr. Erickson stated that Dakota County was ranked first out of all of the counties in the number of households with two persons working. Mr. Clark agreed stating that Dakota and Washington counties have a significantly higher percentage of two persons working per household than the rest of Minnesota counties. One of the reasons for the high percentage is age distribution. In those two counties, the age of residents is lower, which is what leads to there being a higher percentage of households with two persons working. Comm. Detjen asked Mr. Clark how he viewed Dakota County's ranking of first . for the number of people with more than one job. Mr. Clark stated that it meant that there is little room for growth because people cannot take on more employment. Mr. Clark added that Minnesota has traditionally had a great work ethic which has made it more profitable for some companies to locate here even though there are higher taxes. Another indication of Minnesota's strong work ethic is that Minnesota workers have lower amounts of sick leave taken and a higher percentage of vacation days which are not taken. Comm. Brantly asked whether immigration is enough to supply the labor force. Mr. Clark stated that many of the Southeast Asian immigrants have an incredible work ethic which supports the current labor force climate. In the past, Minnesota has had out-migration to states such as California, Illinois, and Florida. In last five years Minnesota has instead had a net in-migration from those states. That change reflects the weaknesses of those state's economies. Mr. Clark stated that when their economies turn around again, Minnesota may again have a net out- migration of workers to those areas. Comm. Detjen asked whether a 2.1 percent unemployment rate is essentially a zero unemployment rate. Mr. Clark agreed stating that usually less than 5 percent is considered zero. Comm. Miller asked what the employment rates were for Wisconsin or Michigan. Mr. Clark stated that they are slightly higher in those states as well as in some northern counties in Minnesota. • Lakeville Economic Development Commission April 27, 1999 Meeting Minutes Page 3 • Mr. Clark stated that there is a mismatch in Lakeville because the industries being attracted are paying lower wages than the housing being built. Mr. Erickson stated that there is a misconception about housing in Lakeville. Although the majority of new houses are higher in price, a large percentage of the established housing stock is moderately priced. Mr. Erickson expressed concern over future retail development in Lakeville. Comm. Brantly stated that retail will not locate in an area until there is an established customer base because they want to be instantaneously successful. Comm. Emond agreed stating that retail establishments do not want to be there too early. In some cases, being at a location too early can lead to establishments closing before the customer base is established. Mr. Clark stated that another difficulty is that people are willing to drive further into the City for retail but not further out of the city. Mr. Erickson stated that various pressures make it difficult to endure the wait until retail is ready to locate in Lakeville. It is becoming increasingly difficult to preserve large tracts of land suited for retail locations. Mr. Erickson stated that the longer it takes retail to locate to Lakeville, the harder it will be to ensure that the land is developed for its highest or best use. Comm. Brantly asked about whether reverse commuting or other solutions for transportation can be successful. Mr. Clark stated that only Eden Prairie and Plymouth have really been successful in their efforts. Mr. Clark added that • transportation solutions are difficult because by the time they are in place the problem has passed or changed too drastically. Mr. Erickson stated that technology is becoming increasingly important in today's workforce. It is difficult for many smaller businesses to keep up with the changing technology. One opportunity for Lakeville may be the creation of a unique technology center. The center would have video conferencing and other technologies that people could come in and utilize for their business. It would be especially useful for those who are working out of their homes. Mr. Clark stated that he thought US West has created that type of a center with access to various technological equipment. Chair Vogel worked with the EDC to create the following summary chart of their discussion: Lakeville Economic Development Commission April 27, 1999 Meeting Minutes Page 4 • Issue Statement Housing Need for affordable stock. Our new "natural° housing stock is not able to accommodate lower wage workers. May be a perception rather than realit with stock more than 20 to 25 ears old. Training Coordinate with high schools & vocational schools. Focus on "ends" of s estrum hi h & low skill ositions . Technology Our population provides a technology edge (individuals from their homes . Recruitment Ma have to " acka e" housin ,education, child care, etc. Foreign Immigrants May be available in metro area, but generally does not exist here. workers Growin o ulation We have rovrin o ulation which should rovide la er workforce Skills of workers Im rovement will be necessa to better roductiv Schools Need for educational system to promote programs training for s ecific skills. Students leaving schools Students are not completing vocational courses because they are recruited out b em to ers. Industry Clusters Must find ways to assist businesses to cluster which promotes roductivit . Retail Ex ansion Will not locate until rootto a ear. Retail Market Area Will fan out south and west from Lakeville. Transportation Must find ways to get workers here (affordability, daycare, reverse commutin ,etc. . • 4. Minnesota Manufacturers Week. Chair Vogel stated that in the past the decision of what type of activities would be organized for Minnesota Manufacturers Week was done in August or September. Usually that meant that the City focused primarily on a recognition banquet. Chair Vogel stated that the recognition banquet may not be the ideal event for the week. Ms. Erpelding stated that Minnesota Manufacturers Week is an annual event which is sponsored by the State of Minnesota, Minnesota Chamber of Commerce, and Minnesota Technology, Inc. In Lakeville, Minnesota Manufacturers Week events have included a proclamation, recognition banquet, and tours of local manufacturers. Ms. Erpelding stated that by beginning the discussion now, staff hopes that they have sufficient time to plan the desired events and can find out additional information if necessary. Comm. Brantly stated that a listening event rather than a recognition event would probably be more valuable for Lakeville businesses. Comm. Schubert agreed stating that it would be good if local representatives were invited. The representatives would be at the event to listen, not to speak. It would give manufacturers an opportunity to state what their needs. Comm. Brantly added that the event would provide the City and representatives an opportunity to learn • what we can be doing for our businesses. It would need to be a roundtable and a facilitator would need to be identified. Lakeville Economic Development Commission Apri127, 1999 Meeting Minutes Page 5 • Comm. Detjen stated that it would be beneficial to have representatives of Dakota County Technical College at the session. The technical college system is continuing to have their funds cut even though manufacturers are stating that there are not enough workers. It is important to increase the awareness of the representatives as to the importance of continued funding. Mr. Erickson stated that another possible activity could be the groundbreaking for the affordable housing unit near Airlake Industrial Park. Chair Vogel stated that some type of interaction with the schools to change their perception of what manufacturing jobs are like would be beneficial. Comm. Schubert agreed stating that most students, as well as many teachers, have never seen what a manufacturing facility is really like. Mr. Erickson stated that it could be instructors instead of students. Comm. Schubert stated that tours would be an opportunity to change the perception of skilled trades. Chair Vogel summarized the discussion stating that the format would be changed from a recognition dinner to a listening session. Mr. Erickson added that there could also be a different session that involved having Lyle Wray from the Citizens League come in and speak regarding the labor force issue. That type of meeting could be held in Airlake. • 5. Update on Strategic Work Plan Activities. Ms. Erpelding stated that staff is currently working on scheduling subcommittee meetings with representatives of Fairview Ridges and Trinity Hospital. Ms. Erpelding also stated that City Staff continues to work with a broker regarding a potential clinic for Lakeville. The broker has indicated that the client would be interested in meeting with the subcommittee and Ms. Erpelding is working on scheduling a meeting with them as well. Ms. Erpelding stated that the Joint Staff Workshop Regarding the Commercial/Industrial Development Review Process took place on April 6m Joining City Staff was Chair Vogel and Commissioner Miller. One change proposed at that meeting was the addition of a City initiated communication before the building permit is issued. The conversation with the business owner would begin to open lines of communication as well as let the owner know the process, timeline, and potential issues. Another suggestion that has been implemented is the addition in the survey letter of a thank you for their contribution to the community. Ms. Erpelding asked Comm. Pogatchnik to provide a brief overview to the April 8m Landowners meeting and the subcommittee meeting held immediately proceeding the EDC meeting. Mr. Pogatchnik stated that there were over 20 landowners that attended the April 8`n meeting. The subcommittee felt the Lakeville Economic Development Commission April 27, 1999 Meeting Minutes Page 6 meeting went well and opened up lines of communication. Mr. Pogatchnik added that the landowners expressed appreciation that the City did not just pass regulations and then tell the landowners. Mr. Pogatchnik stated that the subcommittee had met and passed a resolution that would come to the EDC at their next meeting. The resolution would ask that the EDC recommend to the City Council the receiving of the Statement of Principles and Alternatives, as well as the City Council requesting City staff to develop a work plan. Ms. Erpelding stated that the draft design guidelines have been reviewed by City staff and the Landscape Corridor Study Subcommittee. Barton-Aschman representatives are now in the process of making final modifications before the draft design guidelines are sent to the Ideation Workshop participants for their review. A meeting to review the draft design guidelines has been scheduled for Wednesday, May 12tH beginning at 6 p.m. Ms. Erpelding stated that she would send each EDC member a copy of the draft design guidelines for their review. After the review on the 12tH final modifications will be made and then the draft design guidelines will be sent to the EDC for their review. Ms. Erpelding then asked whether the EDC meeting scheduled for May 25tH could be moved to June to accommodate one of the Landscape Corridor Study Subcommittee members who would be out of town at the next meeting. EDC agreed to reschedule the May 25tH meeting to June 15tH • Comm. Emond asked when the Financial Incentives Subcommittee would begin working. Mr. Erickson stated that it would begin after the legislative session ended. At that time a review of the session would be completed and the subcommittee would begin their work. 6. Staff Activities Report Ms. Erpelding stated that City staff was joined by Comms. Detjen, Emond, Matasosky, and Pogatchnik to welcome the Swedish delegation. The delegation visit included a discussion regarding economic development efforts and a tour of both Airlake Industrial Park and Fairtield Business Campus. 7. Other Business. Comm. Brantly asked Mr. Erickson for an update on Heritage Commons. Mr. Erickson stated that the developers are waiting for the grocery store tenant to be finalized. It is expected that Fleming Foods Board of Directors was making the decision at the time of the EDC meeting. Once the grocery store anchor is decided, the development of the project will proceed. Comm. Detjen suggested that there be an EDC team for the Lakeville Chamber of Commerce Golf Outing. If anyone is interested in making a team, please let • Comm. Detjen know. Lakeville Economic Development Commission April 27, 1999 Meeting Minutes Page 7 • 8. Adjourn. The meeting was adjourned at 8:35 p.m. Respectively submitted by: ATTESTED TO: ~ ~ ~ Rita Erpe ding, R ording Secretary R.T. Brantly, Secrets