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HomeMy WebLinkAbout07-23-96 • City of Lakeville Economic Development Commission Meeting Minutes July 23,1996 Members Present: Brandy, Emond, Erickson, Krejci, Matasosky, Vogel. Members Absent: Detjen, Pogatchnik, Tushie. Also Present: Robert Erickson, City Administrator; Michael Sobota, Community & Economic Development Director; Nicole Bennett, Economic Development Specialist; Dr. Bill Moms and Jim Rose, Decision Resources. 1. Call to Order. Chair Brantly called the meeting to order at 6:10 p.m. in the Administration Conference Room at City Hall. 2. Approval of the June 25, 1996 Meeting Minutes. 96.10 MOTION: Comms. Matasosky/Erickson moved to approve the June 25, 1996 meeting minutes as written. Motion carried unanimously. 3. Presentation of Business Survey Results by Dr. William Morris, Decision Resources Ltd. Mr. Sobota stated that the survey of Airlake businesses which was a part of the Strategic Work Plan is complete, and he introduced Dr. Bill Moms, Decision Resources, to present the survey findings to the EDC. Mr. Sobota noted that a report of the survey results for other businesses in the city is in the process of being drafted. Dr. Morris stated that 64 out of the total 70 Airlake businesses participated in the survey which allows for approximately 4% reliability of the survey results. He stated the type of businesses surveyed were 58% manufacturing, 18% service, 10% retail and 15% other. Comm. Erickson inquired as to what type of business the "other" category might include. Dr. Morris replied that typically these businesses fall into multiple categories, and cannot classify themselves as just one type of business. Dr. Moms commented that the survey then asked businesses how long they had been located at their current site, and how long into the future they planned to operate in Lakeville. He noted that 48% had been at their current site for more than 10 yeazs, 15% for six to ten years, 25% for three to five years, 3% for one to two years, and 10% for less than a year. He added that an overwhelming 83% responded that they plan to operate in Lakeville for over ten yeazs into the fixture. Mr. Sobota inquired how long the businesses that were planning to move had been located in Lakeville. Dr. Moms replied that the businesses planning to move typically had been located in Airlake for two to five years, and the survey results indicated that businesses who had been here the longest were planning to stay into the future. Economic Development Commission July 23, 1996 Meeting Minutes Page 2 • Comm. Erickson inquired as to the reliability of the survey results because it was conducted by phone and business people may have been rushed in their responses. Dr. Morris noted that the phone interviews were scheduled ahead of time, and most respondents spent over 10 minutes responding to the survey. Dr. Morns then discussed results regarding what the businesses liked most and least about Lakeville. He noted that the top three responses for what they liked were: location, growing community, and small town ambiance with a downtown. Regarding what they liked least, 30% were unsure, 23% said "high taxes", 23% made reference to the location as remote or away from their business-targeted population, 18% replied "City Hall not helpful", 5% noted permits and ordinances, and 3% commented that the downtown is not busy. Dr. Moms stated that businesses classifying themselves as retail in Airlake were the most critical across the board. He noted that the 18% response regarding City Hall is the lowest he had ever seen among all of the cities where surveys have been conducted. Comm. Vogel inquired if there was a correlation between responses of high taxes and those businesses that have been located in the city for a long time. Dr. Moms responded that there was a definite correlation. Comm. Krejci noted that property taxes in the city have actually gone down over the past few years. Comm. Vogel stated that older businesses may not recognize the decrease as much as newer • businesses coming in during that change. Dr. Moms stated that 54% of businesses surveyed indicated that they plan to expand in Lakeville. He added that 78% responded that they do not have plans to move to another community. Dr. Morris noted that the results indicate that some of the businesses are planning to expand in Lakeville and in another community. EDC Members commented that these numbers for business retention and expansion are very high, and that more should be done to encourage this potential growth. In terms of labor information, Dr. Moms stated that 43% of businesses indicated that almost none of their employees reside in Lakeville, 33% replied that one-quarter of their employees reside in Lakeville, and 5% said almost all of their employees reside here. He noted that questions about the quality of the labor pool revealed that the main problems aze in finding unskilled labor. He noted that city services received very high marks from the businesses in terms of quality; however, only 83% of Airlake businesses commented on economic development, with half of those responses being favorable and half unfavorable. Dr. Morris stated that 40% of businesses felt that city attitudes and responsiveness were good, 20% felt they were excellent, and 33% felt they were fair to poor. He • noted that the comments indicated more dissatisfaction with the process than the actual contact with staff. Fifty-five percent said they were satisfied concerning contact Economic Development Commission July 23,1996 Meeting Minutes Page 3 • with the city, 25% were aware of the Business-to-City Line, 88% received the Airlake Park News, and 80% found the newsletter very or somewhat informative. - Sixty-eight percent replied that they had not employed any high school students in a work-study or apprenticeship program, but 55% said they would be interested in participating in this type of program. EDC Members commented that these results reveal opportunity for an apprenticeship program, and should be shared with the school district. Dr. Moms stated that Chamber of Commerce membership is at 43% of the Airlake businesses surveyed, but the growth potential is limited due to the businesses stating that they have no time, that membership is too expensive, or that their national company policy prohibits local membership. Mr. Erickson stated that it would be helpful to know if there was a direct correlation between businesses that said the Chamber was not helpful and those that thought the city was not helpful. He noted that the purpose of the survey was to gauge the city's effectiveness in dealing with the business community, and he asked what the EDC members' reactions were to the survey findings. Comm. Matasosky stated that the findings support staff's efforts to be more understanding of business needs. He noted that the tax situation and incentive programs need to be addressed more effectively, and definitive programs targeting these issues need to be developed by the city. Chair Brantly stated that the Airlake Park News could be used to discuss these issues. He added that existing businesses may need assistance to expand in the city. Comm. Krejci commented that she was surprised to learn that some businesses commented on rude behavior by city staff. Dr. Morris stated that those comments seemed to come from old experiences with the city because a large percentage of the businesses stated they had not had official contact with the city in the last year or so. Chair Brantly stated that these results indicate the city needs to renew contact with Airlake businesses, and that the city needs to have individual contact with every business. Comm. Vogel stated that one approach to the problem would be to form a task force of business people to discuss incentives and other issues as an educational and participatory process. Mr. Sobota inquired what other cities had done after the surveys were completed. Dr. Morns replied that some cities packaged the survey results and sent them back to the businesses, some cities held focus group sessions to deal with a structured set of concerns brought out in the survey, and some implemented a phone line or a newsletter. He added that the city of Lakeville has already implemented most of these ideas, but that it may be useful to somehow present the results to the business community. Economic Development Commission July 23, 1996 Meeting Minutes Page 4 Mr. Erickson discussed several possibilities for follow-up activities to the survey. He suggested that the city could host a breakfast meeting for businesses that have been in Lakeville 10 or more years to honor them and to send a signal of how much the city wants them to stay and expand here. He suggested that the distribution of rolodex cards with the Business-to-City Line for each business to use might improve awareness of that service. Mr. Erickson also noted that asingle-source development review team to deal with all development projects in Airlake, from planning and engineering to building inspections, could be created within city staff or the EDC could develop a new strategic action plan to include more focus on long-tenured businesses with the Chamber acting as a partner. Mr. Sobota stated that the survey results will be valuable for the Strategic Plan update. Comm. Emond stated that the survey will only be effective if the EDC follows up on the issues raised. Mr. Erickson stated that the EDC can provide valuable direction to staff in reaching existing businesses. Mr. Sobota recommended that the EDC could develop a list of potential participants to serve on the proposed task force. Comm. Vogel noted that the task force must have a specific purpose or charge to make it effective. Comm. Matasosky noted that the task force input could lead to something entirely new in terms of incentive programs. Mr. Erickson stated that changes in Airlake businesses is another issue that needs to be addressed, and that the city and other businesses should stay informed of such changes. Chair Brantly suggested that changes in key business personnel could be covered in the Airlake Park News. 4. Project Activities Update. Mr. Sobota stated that New Morning Windows has reported a total of 23 new jobs as of June 30, 1996, and the target number of new jobs to be created through the State of Minnesota DTED loan is 36. He noted that Verified Credentials has submitted site plans fora 20,000 square foot corporate headquarters in Fairfield Business Campus and the company's proposal will be discussed later on the agenda. Mr. Sobota stated that the downtown improvement project is ahead of schedule, the street lamps are installed and displaying City of Lakeville banners. Comm. Erickson noted that some of the new street lamps appear to vary in their base height causing some to not be flush with the sidewalk. Mr. Erickson responded that he will have staff examine the lamp posts. Mr. Sobota noted that the marketing videos are moving ahead, and the draft manufacturing video will be shown later in the meeting for EDC members to view and provide comments or suggestions. He stated that the Minnesota Real Estate Journal ads are on schedule, and the city will receive one additional ad for free due to an error in the July 8th ad. Economic Development Commission July 23, 1996 Meeting Minutes Page 5 Mr. Sobota noted that Herb Wensman and his architect have proposed a new design that is complimentary to the Town Square development for the townhomes to be located north of City Hall. He added that there will be a City Council worksession on July 29th to discuss Verified Credentials, the naming of Town Square, and the draft letter to the School District regarding strategic planning and secondary facilities. 5. Review of TIF Proposal from Verified Credentials, Inc., for Fairfield business Campus. Mr. Sobota stated that Verified Credentials has submitted plans for a corporate headquarters in Fairfield Business Campus, and he inquired if the EDC had any issues of concern or changes regarding the company's plans and request for TIF. Mr. Sobota briefly reviewed the design treatment changes suggested by staff and the Fairfield Business Campus Association members (New Morning Windows and United Properties). Comm. Emond inquired if Verified Credentials has its financing lined up. Mr. Sobota replied that Verified has been approved for an SBA loan and other financing has been secured. 96.11 MOTION: Comms. Emond/Erickson made a motion to recommend to the City Council that Verified Credentials, Inc., proposal be approved. Motion carried unanimously. • 6. View and Comment on Marketing Video. Chris Oace, Cable Channel 16, introduced the marketing video for manufacturing and the EDC viewed the video. The EDC provided comments and suggestions for change to staff, and also provided feedback on the packaging. Staff will revise the video and packaging to incorporate the suggested changes. 7. Other Business. No other business was discussed. 8. Adjournment. The meeting was adjourned at 8:20 p.m. Respect ]ly submitted: ATTEST TO' C,c/ ole E. Bennett, Recording Secretary an Krejci, Secr tary • c:lwinword\edc\mtg08271mn072396.doc