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HomeMy WebLinkAbout06-25-02 City of Lakeville Economic Development Commission Regular Meeting Agenda Tuesday, June 25, 2002, 7:00 p.m. Lower Level, Lakeville Area Arts Center 20965 Holyoke Avenue 1. Call meeting to order. 2. Approve April 23, 2002 meeting minutes 3. 2002-2004 Strategic Plan A.) Work Plan Goal #1: Educate residents on benefits of C/! • Consider PR Firm proposals • Spotlight On Business update B.) Work Pian Goai # 3: Encourage investigation of critical business infrastructure • E-Commerce Certification Event • Dakota County Technical College collaboration on Lakeville Technology Center Concept 4. Consider Concept for Ben Franklin Exterior Code Improvement Project 5. Review of proposed Dakota County Tax Increment Financing Policy 6. Update On Dakota County Economic Development Partnership 7. Director's Report 8. Adjourn. 4 _T City of Lakeville Economic Development Commission Meeting Minutes April 23, 2002 Marion Conference Room, City Hall Members Present: Vogel, Brantly, Emond, Matasosky, Pogatchnik, Schubert, Tushie, Smith, Ex-Officio member Todd Bornhauser, Ex-Officio member Robert Erickson. Members Absent: Commissioners Miller, Erickson. Others .Present: Staff present: David Olson, Community & Economic Development Director; Ann Flad, Economic Development Coordinator. 1. Cal Meeting. to Order. Chair Vogel called the meeting to order at 6:00 p.m. in the Marion Conference Room of City Hall, 20195 Holyoke Avenue, Lakeville, Minnesota. 2. Approve March. 26, 2002 Meeting Minutes. Motion 02.07 Comms. EmondJShubert moved to approve the minutes of the March 26, 2002 meeting. Motion carried unanimously. 3. Introduction of new EDC member Tom Smith Mr. Olson introduced Tom Smith to the Economic Development Commission. Mr. Smith has been appointed to the EDC by the City Council for the remainder of a three-year term that expires on December 31, 2002. Mr. Smith indicated that he has been active in the. Lakeville business community over the past 8 years, is a past President of the Lakeville Area Chamber of Commerce, and is the President of Brackett's Crossing Country Club. Commissioners then introduced themselves to Mr. Smith. 4. 2002-2004 Strategic Plan: A.) Work Plan Goal#1: Educate residents on benefits of CommerciaVlndustrial (C!I) Ms. Flad indicated that the CJI Subcommittee met on April 22, 2002 in the Marion Conference Room of City Hall. The subcommittee was formed to address Goal #1 of the Economic Development 2002 Strategic Work Plan "to inform and educate residents on benefits of C/I base to gain community support and appreciation for business growth." Specifically the subcommittee is charged with putting together Economic Development Commission Meeting Minutes Apri! 23, 2002 information to be used to inform residents on the benefits of C/I, include identifying targeted ratios and providing comparative information from other cities as well as different C/I areas within Lakeville. At the Subcommittee's January meeting, staff was requested to obtain the following comparative information for the cities of Lakeville, Plymouth, Eden Prairie, Eagan, Burnsville, and Woodbury: • Operating Budget Per Capita • Percent of tax exempt property • Percent of land designated for various land uses (i.e.: commercial/industrial, residential, publicltax exempt.) • City and total property taxes on a $250,000 home (payable 2002) Ms. Flad indicated that Apple Valley was not chosen: as a community to use for comparison purposes due to their extensive use of Tax Increment Financing (TIF), whereas Lakeville andthe other communities selected have s much lower use of TIF. Comm. Pogatchnik added .that all of the communities in the comparison have a substantial. amount of interstate frontage.. Ms. Flad explained that information from each City's Comprehensive Plan was used to develop a chart depicting the percent of land. designated for commercial/industrial use, residential use, and public/tax exempt use. According to Lakevilie's Comprehensive Plan, the Gity of Lakeville has designated 13%° of its land as Commercial/Industrial through 2020. Eagan, Plymouth, and Woodbury also designated 13% of the land in their communities for commercial/industrial through 2020 also. Only Eden Prairie plans to have less commercial/industrial land in 2020, at 12.08%, while Burnsville has designated 21.19% of its land area as Commercial/Lndustrial through 2020. The Comprehensive Plan also indicates that the City of Lakeville has designated 53.9% of its land area for residential. use through 2020. This is comparable to the amount of land designated for residential use in Plymouth (52.95%) and Woodbury (60.7%). It is also greater than the average (45.1 amount of land communities designated for residential use through 2020. Lakeville has the smallest amount of land (10%) designated for public/tax exempt purposes amongst the communities examined. The average amount designated for this purpose amongst the communities examined was 18.17%. However, it should be noted that Lakeville has 989 acres of water (4.1 % of the City's total acreage) and 2,535 acres (10.5%) of land designated for right-of-way in the 202 Comprehensive Plan Update. Mr. Feller explained the chart that was prepared which shows each city's operating budget per capita and calculated taxes that would be paid in each city on a $250,000 2 Economic Development Commission Meeting Minutes April 23, 2002 home. Mr. Feller used information from County Assessors' Offices to develop the chart. Residents of Lakeville pay the lowest amount of total taxes ($2,718) on a $250,000 home compared to other cities in the study. Mr. Feller explained that some of the significant factors affecting tax levies include, but are not limited to local government fiscal management policies, state aid for property tax relief, fiscal disparities, tax base composition, state education aids, and municipal liquor fund contributions. The City of Lakeville's per capita 2002 Tax Levy is the lowest amongst all cities surveyed, at $252.61 per person. Lakeville-also is amongst the lowest in per capita expenditures. The Subcommittee questioned whether the residents of Lakeville realize that taxes are lower in Lakeville than in other communities. Mr. Feller reported that the City presents information in the ThisWeek Life & Times each November in advance of the Truth In Taxation hearing. The Subcommittee discussed that maintaining or improving Lakeville's positive tax position requires. achieving. commercial/industrial development as outlined in the Comprehensive Plan. Comm. Pogatchnik also indicated that the Subcommittee felt the .messages should be conveyed by the EDC rather than from the City of Lakeville. The Subcommittee will also help residents recognize that infrastructure improvements can be implemented while maintaining a positive tax position relative to other communities. The Subcommittee determined that they would educate the community on the benefits of C/I development in three stages: 1. .Educate the residents that the City has been very responsible in fiscally managing the City. 2. Educate the residents about the proportion of C/I to residential development that is called for in the Comprehensive Plan. 3. Educate the residents about the future needs of the community and the benefits that C/I development will accrue toward those needs.. Commissioners discussed potential channels to distribute the message. It was suggested that a summary of the Subcommittee's research be provided to the school districts for their use. Other suggestions for disseminating. the information included the Messages Page of the ThisWeek Life and Times, newcomer packages, mailings, television commercials and regional media such as the Star Tribune. The Subcommittee recommended that amarketing/public relations consultant be enlisted to develop and implement a plan to achieve the above three stages of educating the public. Mr. Olson will be providing the Subcommittee with information on potential consultants at the next Subcommittee meeting in May. 3 Economic Development Commission ` Meeting Minutes April 23, 2002 The Subcommittee will bring these recommendations to the EDC and the City Council once a proposal by a marketing/PR consultant has been obtained. B.) Work Plan Goal # 3: Encourage investigation of criticai business infrastructure Mr. Olson reported that City staff have met with Springsted regarding options for funding the City's share of interchange improvements for the I-35 interchanges located at County State Aid. Roads 60, 70, and 50. Springsted has been pravided with most current cost estimates available for the three interchanges. While the costs for CSAH 70 and CSAH 50 are still preliminary, the current total cost for all three interchanges is .estimated. at $40,070,000. The current estimated City share is $19,800,000 for the three interchanges. Springsted will be working on preliminary analysis of potential funding sources to finance the City's share of these interchanges, including: • Municipal State Aid (MSA} funds (both current and Advance Encumbrance amounts) • Tax abatement (both City and County)- • EDA Property Tax Levy • Special Assessments • Special Taxing District Bonds • Water and Storm Sewer Trunk Funds Mr. Olson reported that progress has been made to determine the feasibility of using several of these various financing sources to fund the City's portion of the three interchanges. However considerable study and analysis is still necessary. It is anticipated that preliminary information should available to discuss with the EDC in the near future. Ms. Flad reported that the High Tech Subcommittee met on April 3, 2002 at 5:30 in the Marion Conference -Room at City Hall. At the Subcommittee meeting, Focal Communications provided information about the telecommunications services they can provide to businesses. in Lakeville. The Subcommittee also reviewed the status of their progress and identified additional activities to accomplish their goals, including maintaining quarterly contact with telecommunications service providers, maintaining contact with Dakota County Technical College, consideration of forming a technology users group in Airlake Park, and conducting an annual event that focuses on technology or telecommunications in Lakeville. Staff will implement the activities identified and the Subcommittee will meet on an as-needed basis in the future. Additionally, at the January 29, 2002 EDC meeting, Commissioners moved "to direct staff to pursue E-commerce Certification with the assistance of Frontier on the basis 4 + Economic Development Commission Meeting Minutes April 23, 2002 that it is consistent with Goal #3 of the City's 2002-2004 Strategic Plan for Economic Development." Staff met with Margaret Olson of the Department of Trade and Economic Development on April 8, 2002 to review a draft of the E-Commerce Readiness application. The formal application is being submitted by mail and Ms. Olson will present itto DTED Commissioner Rebecca Yanisch and other DIED staff for approval. An event will be scheduled this summer at the Lakeville Area Arts Center at which DTED will formally present the City of Lakeville with E-Commerce Readiness Certification. Frontier is also coordinating an educational seminar that is designed to educate community leaders on technology terms and innovations. They have retained Bil{ Coleman of Minnesota Technology, formerly of the Dept. of Trade & Economic Development, to present this seminar on April 30, 2002. The City of Lakeville has been provided with fifteen tickets to this event. EDC members, Telecommunications members and staff are invited to attend. 5. Ordinance concerning Official Mapping; Ordinance concerning Official Controls City Administrator Robert Erickson presented information on the City Council's April 15, 2002 resolution enacting an ordinance to protect the planning process. Mr. Erickson explained that the interim ordinance emporarily prohibits the approval of new residential single family and two-family homes as well as townhomes and apartments. The ordinance will not affect building permits or projects that are being processed or were previously approved. Senior housing, low and moderate income rental housing, manufactured homes, churches and schools are exempt: The interim ordinance will be in place until official growth controls have been adopted or April 14, 2003, whichever occurs first. The interim ordinance: will allow the City. time to complete a comprehensive review and update of the City's zoning ordinance, a review of growth management practices, .and a review and update of the City's comprehensive sanitary sewer and water plans. M~r. Erickson reported that 30% of the. single family home permits in Independent School District 194 in 2001 were outside of the City of Lakeville. Lakeville is seeing an increase in townhome deve{opments. Mr. Erickson also indicated that the 1998 Strategic Growth Management Task Force concluded that the City cannot prudently sustain more than 400-450 housing starts per year, yet nearly 3,892 lots are being platted currently. Lakeville averages nearly 175 townhome starts. At Apple Valley's 2000-2001 absorption rate, the City of Lakeville already has enough townhome lots to accommodate market demand for 4-6 years. Mr. Erickson reported that the City Council considered requiring developers to complete their developments in phases, but the Council felt it would be unfair to impose a phasing requirement when some developments are relatively small and s Economic Development Commission ' Meeting Minutes April 23, 2002 would only be able to complete a few units, while other developments are quite large and could complete a substantial number of units in one phase. Comm. Matasosky inquired who townhome developers are marketing toward. Comm. Emond indicated that townhome developers are focusing on young families and first time homebuyers as well as people whose children have left home. Comm. Smith questioned whether the public would be provided with notification before the issue is reconsidered upon the expiration of the interim ordinance. Mr. Erickson indicated that the public would be informed 30 to 60 days prior to the expiration of the interim ordinance. City Administrator. Erickson also provided Commisisoners with information regarding the City Council's interim ordinance temporarily prohibiting development and new construction in the area east of the I-35/Co. Rd. 50 interchange. The interim ordinance was adopted to allow the City time to study and officially map future road alignments. The ordinance will be in effect until the adoption of official maps and other official controls or until April.l4; 2003; whichever occurs first. Mr. Erickson explained that the Dakota.Coinnty Transportation Department has_stated that County Road 50 in the 1=35/Co. Rd. 50 area is at`capacity today. Development in this area is difficult due to the location of access points and the road being at capacity. Additionally,. there is no County_funding in place to improve-the_roadway within the next five years. The interim ordinance wilt provide time for the City to hire a consultant to develop road alignment designs that enhance traffic flow. Temporarily prohibiting development in the area prevents-property owners from investing money into projects in areas that the City may ultimately need to aquire as right-of-way for realigned streets. The temporary prohibition on development in the area coincides with the EDC's interchange financing study. Once new road alignments are designed and the area is officially mapped, funding for the interchange upgrades will be pursued. 6. Director's Report. Mr. Olson reported that the 20 commercial, industrial and institutional projects that either have been proposed or are pending in Lakeville are not affected by the interim ordinance prohibiting development east of 1-35/Co. Rd. 50. The commercial and industrial projects for which plans have been submitted include a total of 186,000 square feet.. This does. not include the proposed Crossroads project proposed at Cedar and Dodd, which contains approximately 182,000 square feet commercial space. The next steps for this project will include neighborhood meetings, review of a concept plan by the Planning Commission and City Council, and completion of an EAW. In addition to Crossroads, it is anticipated that additional commercial uses to be located in TimborCrest will be announced by Avalon in the near future. 6 Economic Development Commission Meeting Minutes Apri123, 2002 The Dakota County CDA has recently closed on the purchase of the Wren property along 210th Street according to Mr. Olson. The EDC supported the City's commitment of 2000-2001 Community Development Block Grant funds to acquire the site for the development of an affordable townhome project. The Dakota County Community Development Agency (CDA) will be submitting an application to the Minnesota Department of Trade and Economic Development to do further environmental investigation on the required cleanup of the dump site(s) located on the property. The CDA is also proceeding with submission of applications to the various funding sources to develop their next affordable rental townhome project on the Gilb property adjacent to United Building Center in Lakeville. Mr. Olson reported that representatives of Wells Fargo have indicated that once the car wash/laundromat property in downtown Lakeville is conveyed to them they would undertake the .necessary building. demolition and cleanup required on this site and construct additional off-street parking on the site. Additionally, Mr. Olson reported that three of the four commercial spaces in Main Street Manor have been leased and two have been occupied. The new tenants that'currently occupy the building include the State Farm Insurance agency that was previously located across the street. The second. tenant that .has leased space in the building is ATA Karate, which: also has a location in Burnsville. New Market Bank is the hrd tenant that agreed to lease_space and will undertake leasehold improvements in the near future. HOM Furniture's grand opening and silent auction to benefit the Lakeville Area Arts Center was held on Saturday, April 13, 2002. Approximately 600 people attended the event including a number of EDC members and approximately $18,000 was raised for the Art Center through the silent auction. 7. Adjourn. Chair Vogel adjourned the meeting at 7:59 p.m. Respectfully submitted by: Attested to: Ann Flad, Recording Secretary R. T. Brantly, Secretary Agenda.Item MEMORANDUM TO: Economic Development Commission CC: Robert Erickson, City Administrator Ann Flad, Economic Development Goordnator FROM:.. David L. Olson, Community & Economic Development Director~~~;~" DATE: June 18, 2002 RE: Work Plan Goal #1: Educate Residents on Benefits of G/l Goa! #1 of the Economic Development 2002 Strategic Work Plan is `~o inform and educate the residents of the benefits of Ctl base to gain community. support and appreciation. for business gr©wth." The C/I Subcommittee at its. April 22, 2002 meeting recommended the followring steps be pursued to educate the community on the benefits of C/I development. 1. Educate the residents that the City has been very responsible in fiscally managing. the City... 2. Educate 'the residents about the proportion of C/l to residential development that is called for in the Comprehensive Plan as compared to other communities. 3. Educate the residents- about the future needs of .the. community and the benefits: that C/1 development will: accrue. The Subcommittee also discussed methods of outlining,- implementing, and. evaluating the education process. It was the. consensus of the Subcommittee to solicit. proposals from public relation consulting firms to assist the EDC in this initiative. The firms of Himle Horner Inc. and New School Inca were invited to submit information on .their firm's. qualifications for this type of project... These. firms were. selected based on recommendations from other ..individuals and agencies. Copies of the proposals. that were_ received from both firms are attached. Both firms were interviewed by Chairman Vogel, Ann Flad and. myself. Based on .the qualifications of both firms, the interviews. that were conducted, and the subsequent preliminary. proposals .submitted by both firms, it is the recommendation of Chairman. Vogel and staff that the firm. of Himle Horner be invited to the July 30t" EDC meeting. - The purpose of inviting Himle Horner to the July meeting would be to allow other EDC ..members to discuss the firm's approach to the project and to attempt to develop an agenda for tasks that would be completed by Himle Horner. It_is recommended #hat a representative of Himle Horner be .paid his normal hourly. rate to participate to attend. this. meeting. Subject to the consensus of the majority of the EDC, a scope of services /contract would be developed including. identification of the sources of funding for .the .project. This scope of services /contract and funding recommendation would be brought to the EDC for consideration at the Qctobjer meeting. The project would hopefully be completed. by March'of 2003. .The above schedule. is being recommended because the current workload of staff would not `allow. this initiative to be adequately managed until Later this fall. ' A list of the current projects that staff is currently working on is attached. With a fairly high number of commercial and industrial projects both large and small in the planning. and construction process and in the .interest of providing: quality customer service to the developers of these projects, it is important that sufficient staff resources be available to assist these projects through the City review process. This is particularly the case with our relatively short prime construction season. The Commission is requested to authorize inviting:. the #irm of Himle Horner Inc. to attend the July 30th EDC meeting to discuss their proposal to assist the EDC in coming up with a plan for Educating the Public on the- Benefits of C/I Development. CURRENT PROJECT LIST /Community & Economic Development Staff June 4, 2002 Dave's List Administer 2002 CDBG Program /Ben Franklin Facade Project Interchange Financing Study Empire Treatment Plant Expansion Advanced Wireless Communications Project Crossroads Project (182,000 SF of Commercial Development) TimberCrest Project (570,000 SF of Commercial Development) East-West Corridor Study Arden Kitchens Sale Coordinating Airlake Airport Issues with MAC Airlake 5th Addition /Dick's Sanitation Project Airlake 6th Addition /Boise Cascade Project Re-use of Merillat Bldg. Dry Cleaner/Car Wash Property Acquisition /Parking Lot Development Dakota County Economic Development Partnership Task Force Dakota County TIF Policy Discussions Co. Rd. 50- I-35 Moratorium United Properties Development on Co. Rd 50 (1 &0,000 SF of Commercial Development) Bob James Property Development Proposal Gravel Mining EIS in Empire Township and Moratorium in Lakeville EDC C/I Subcommittee Coordination of EDC Packets and Meetings Implementation of 2002 Work Plan of 2002-2004 Economic Development Strategic Plan Miscellaneous Commercial Projects (See attached list and map) Ann's List 'E-Commerce Certification. Spot Light on Business Airlake Industrial Park Signage Mpls/St. Paul Magazine Feature Article TimberCrest Inquiries Proposed Fleck Restaurant Ben Franklin CDBG Project Airlake Newsletter Chamber of Commerce Newsletter -Around Town Articles Responding to RFPs from Keewaydin, Cushman Wakefield Hi-Tech Subcommittee -Discussions with DCTC, Lakeville Technology Center Progressive Rail Expansion Issues Numerous and regular inquiries on small business site searches Manufacturers Month Event Planning Comprehensive Lakeville Business Database Development Implementation of 2002 Work Plan of 2002-2004 Economic Development Plan ~1111~e Koe~ INCORPORATED PUBLIC RELATIONS MARKETING PUBLIC AFFAIRS May 31, 2002 David L. Olson, Director Community ~sz Economic Development City of Lakeville 20195 Holyoke Avenue Lakeville, MN 55044 Dear David: Thank you for inviting Himle Horner to prepare a proposal for a public awareness and engagement campaign for the City of Lakeville and its Economic Development Commission. Enclosed is our proposal for atwo-year program to assist the Commission. In keeping with the budget guidelines. outlined by you, I have recommended two options for strategic counsel. Each of these includes the following roles for Hirnle Horner: • Creation of a detailed plan for the Commission to increase resident awareness and engagement in economic development discussions within the City of Lakeville • Identification of key messages • Development of a modular presentation for use by City Staff • Evaluation of current communication materials and tactics, along with recommendations for future activities • Assist in design of research • Prepare yearly progress reports on activities In Option B, Himle Horner would assist City staff in the implementation of specific tactical steps far which our. expertise may best complement those of your staff. The specific items included on this list may change based on'the choices the Commission makes with regard to implementation of the public awareness and engagement campaign. If you have any questions related to this proposal, please call me at 952-897-8212. I hope we can meet in the near future to discuss Himle Horner's ideas in more detail. Sincerely, Todd Rapp Senior Director 8500 Normandale Lake Boulevard, Suite 720, Minneapolis, MN 55437 Phone:952-831-3200 Fax:952-831-5116 E-mail: himlehorner@himlehorneccom Increasing Public Awareness and Participation in Economic Development Planning and Implementation Proposal prepared for Economic Development Commission City of Lakeville May 31, 2002 Prepared by Todd Rapp, Senior Director Himle Horner, Inc. 952-897-8212 ToddRappC~HimleHorner.com Situation Analysis The City of Lakeville has successfully managed 30 years of exceptional residential and business growth. In just three decades, Lakeville has grown from an outpost of just 7,500. residents in 1970 to a thriving, dynamic city of 43,000 in 2000 .with growth expected to continue.. That success was due in no small part to the thoughtful, well researched planning by city officials, residents and others. While other communities have experienced similar growth, not all have been able to maintain a high quality of life and full community support while they grew. Often communities have built first and thought later of planning. Lakeville, by contrast, has developed a deliberate, intelligent plan to ensure that they have the right mix of business and residential development while maintaining the support of area residents. The challenge for Lakeville as it grows into the next stage is to maintain and broaden that support by communicating to residents details of the long range plan, Why economic development is good for the city, how plans are derived and listing past successes are critical messages if Lakeville citizens are going to continue to support growth. In short, residents need to understand that Lakeville will continue to change and understand how and why those changes will be implemented. HHI Proposal for Lakeville EDC 2 May 31, 2002 f Introduction Why Himle Horner? Three reasons stand out: 1. We have a demonstrated track record of tackling tough challenges in local communities and producing successful results. Himle Horner has earned a reputation as the leading public affairs agency in Minnesota. What have we done to deserve -this reputation? We know how to build coalitions and how to communicate with them. We reach out to diverse audiences to engage them around common interests. We work to understand the key messages most important to targeted audiences and we find out the most effective means to deliver. those key messages. Working with the City of Lakeville, we will break through the clutter of competing communications to ensure that people understand what is transpiring. in .their community, how they can get involved and where they can go for more information. 2. We know how to build coalitions to obtain positive results. No other agency is better at partnering with potential supporters and identifying key opponents to develop integrated communications to reach a desired goal. The first step in understanding how to best communicate with your audiences is to understand who they are and what motivates them. Through research and testing Himle Horner will understand what information people are looking for and in what manner they prefer to receive it. We will also assist in developing communication vehicles designed to communicate key messages as determined by the Economic Development Commission. 3. We know how to create the right strategy to deliver the right tactics. Him)e Horner has a long and successful history of working with public entities to communicate complex issues to large audiences. From city councils to state departments to local coalitions, we know how to educate, energize and engage people on important issues. Most importantly, Himle Horner develops strategies first rather than preparing an unrelated list of tactical steps for a client to consider. HHI Proposal for Lakeville EDC 3 May 31, 2002 Strategy and Deliverables The City of Lakeville. is looking for assistance with strategic public affairs counsel and targeted public relations tactics. Based upon current research and conversations with City staff, residents,. interested audiences and others, Himle Horner will develop a specific plan that will include: • Developing key messages, materials and the communication vehicles to deliver them; • Identifying key community groups with whom to communicate and managing the communications with them; and • Providing custom strategic counsel .and project management for plan implementation. Some questions we would want to discuss with City staff and others include: • How does Lakeville integrate its planning efforts with. those undertaken by Dakota County and the Metropolitan Council? • What is the level of political support for the planning efforts undertaken by the Economic Development Council? • What issues concern residents and business leaders as Lakeville. emerges. into one of Minnesota's largest cities? While the specifics of the plan will be based on more thorough research and conversations with City staff and targeted groups, some of the ideas we may want to explore to effectively communicate key messages .about Lakeville's economic development include: • Creating a modular presentation for City staff to use with key groups; • Developing materials to communicate how economic development benefits the entire city,, including fact sheets, electronic presentations, charts, graphs, profiles, brochures and other materials; • Identifying and capitalizing on opportunities to promote the City of Lakeville; • Determining the best option for sharing information with residents by updating and re-energizing .existing materials. For example -survey web. users on what information they want most, consider providing Lakeville information via a-mail, reformat "Messenger" with. more crisp look and review editorial content standards; and • Creating an electronic model of how Lakeville will look in 10, 20 or SO years to be displayed on web site, in kiosks, in newsletters, etc. HHI Proposal for Lakeville EDC 4 May 31, 2002 Budget Himle Horner is recommending two different levels of activity for Lakeville to consider for public affairs and public relations consulting from July 2002 through June 2004. Option A Budget: $2,000 per month retainer (plus out-of-pocket expenses) Activities: - Assist Economic Development Commission staff in creating a strategic plan to communicate economic development. activities and benefits to residents - Strategic counsel on tactical implementation including: 1. Identifying key messages -and adjusting as necessary 2. Identifying key constituencies 3. Evaluating current communication materials 4. Creating and updating a modular presentation for City staff 5. Assisting in design of research of residents and businesses 6. Developing yearly progress report on activities Option B Budget: $3,500 per month retainer (plus out-of-packet expenses) Activities: - Assist Economic Development Commission staff in creating a strategic plan to communicate economic development activities and benefits to residents - Strategic counsel on implementation of all Option A tactics plus; 1. Redesigning and updating web site and evaluating its effectiveness 2. Developing media pitch to targeted publications (commercial and residential developers, potential homeowners, major media outlets, etc.) 3. Organizing community meetings to promote the City of Lakeville 4. Reviewing and editing all economic development publications HHI Proposal for Lakeville EDC 5 May 31, 2002 t The Account Team Himle Horner is a 18-person agency. More important than the size of an agency is the team our agency or any agency is willing to dedicate to the account. We are proposing an account team that by virtue of experience and training is ideally suited to this task. Key members include the following Himle Horner professionals: ? Todd Rapp -Todd Rapp is a senior director at Himle Horner. He provides counsel and strategy in areas of media relations, public affairs, coalition development, grassroots advocacy, and corporate and crisis communications. He chairs the Minnesota Chamber of Commerce's Fiscal Policy Committee, which develops policy statements and public affairs strategies for the Chamber's member companies and. associations in the areas of taxes and government finances. Previously Rapp served as Minnesota Director of Government Affairs for Xcel Energy and as Chief of Staff to Minnesota Speaker of the House Phil Carruthers. ? Patrick Sexton -Pat Sexton is a senior account executive at Himle Horner. He works with clients in areas of media relations, public affairs, corporate communications, strategic planning and crisis management. Previously Sexton served in the office of Governor Arne H. Carlson as a communications staff member and director of legislative affairs. He has also worked in senior .communication positions at Honeywell and West Group. Other Himle Horner staff would be available as needed. HHI Proposal for Lakeville EDC 6 May 31, 2002 A Bit about Himle Horner, Inc. Him1e Horner was created in 1989. We remain an independent agency (still owned by the two founders). Services Himle Horner is able to develop, manage and implement all the services recommended in this proposal, including the following: ? Conduct qualitative research with target audiences. o Develop a marketing plan with specific measures. ? Build and engage .key partnerships, ? Develop, design and produce collateral material. ? Execute a media re{ations program. ? Manage the entire campaign. C/ients Our clients are in diverse fields and call on us for a variety of challenges. Our work is in public affairs, corporate communications, marketing and other information arenas. Current and recent public sector and local development clients include the following: ? Northstar Corridor Development Authority ? Anoka County ? Minnesota Department of Health ? Minnesota Department of Transportation ? Ramsey County Regional Rail Authority o Burnsville-Savage-Eagan Independent School District #191 Current and recent clients also include: ? Blue Cross and Blue Shield of ? Minnesota Orchestra (Brooklyn Park Minnesota amphitheater) o Metropolitan Council of Chambers of ? Eller Media (St. Paul billboard Commerce ordinance ? Minnesota Business Partnership o Minnesota Chamber of Commerce ? Care Providers of Minnesota ? Minnesota Grocers Association ? The McKnight Foundation ? Target Corporation ? Xcel Energy ? West Group References (Other references are available should they be needed.) Nate Garvis Tim Yantos Vice President, Government Affairs Northstar Project Director Target Corporation Anoka County 612-696-6866 763-323-5692 HH! Proposal for Lakeville EDC 7 May 31, 2002 Our Promise to You Achieving a level of excellence in .creating and implementing a marketing program is the result of a partnership between the client and an agency that thinks creatively and strategically. Creating a partnership requires a commitment from both parties. Himle Horner's responsibilities include the following: ? To design a program that is distinctive to each client and its needs. We won't give you an "off-the-shelf" program just because it has worked for someone else. ? To take the time to know you and your organization. It is your face we are presenting to your key audiences. We want to make sure it is represented accurately and fairly. ? To give you our best advice at all times. Our first criterion in advising you is to consider your best interests. ? To provide you-with senior-level account management. We won't "sell from the top and service from the bottom." ? To be fair, honest and forthright in our billings, in our effort and in our relationship with you. Once we agree on a .program, we will deliver the product to your. expected level of excellence within the approved budget. HHl Proposal for Lakeville EDC $ May 31, 2002 Financial Agreement Himle Horner is proposing to be retained by the Economic Development Commission of the City of Lakeville at a fixed monthly rate. Any costs in excess of the monthly retainer, other than direct out-of-pocket expenses, incurred for the professional services outlined above will be approved in advance by you, and billed at the hourly rates listed below.. Any additional professional services, production fees or vendor costs requested will be negotiated separately: Principals, Senior Counselor $225/hour Senior Director $200 Directors $150-175 Account Supervisors $120-145 Senior Account Executives $110-120 Account. Executives. $90-110 Asst. Account Exec. $65-90 Support .Staff $45 Far. your reference, Himle Horner bills on a monthly basis, and payment is due within 30 days of the invoice. Overdue invoices incur an interest expense of 1.5% per month (18% annual). Any vendor .costs incurred on behalf of the client and billed through Himle Horner carry amark-up of 17.65%. Himte Horner allows clients to be billed directly for vendor expenses, thereby avoiding the agency mark-up. Himle Horner reserves the right to change its hourly rates; you will be notified in writing 30 days prior to any changes. HHI Proposal for Lakeville EDC 9 May 31, 2002 financial Agreement Himle Horner is proposing to be retained by the Economic Development Commission of the City of LakeviNe at a fixed monthly rate. Any, costs in excess of the monthly retainer, other than direct out-of-pocket expenses, incurred for the professional services outlined above will be approved in advance by you, and billed at the hourly rates fisted below. Any additional professional services, production fees or vendor costs requested will be negotiated separately: Principals, Senior Counselor $225/hour Senior Director $200 Directors $150-175 Account Supervisors $120-145 Senior Account Executives $1i0-120 Account Executives $90-110 Asst. Account Exec. $65-90 Support Staff $45 For your reference, Himle Horner bills on a monthly basis, and payment is due within 30 days of the invoice. Overdue invoices incur an interest expense of 1.5% per month (18% annual). Any vendor costs incurred on behalf of the client and billed through Himle Horner carry amark-up of 17.65%. Himle Horner allows clients to be billed directly for vendor expenses, thereby avoiding the agency mark-up. Himle Horner reserves the right to change its hourly rates; you will be notified in writing 30 days prior to any changes. HHI Proposal for Lakeville EDC g May 31, 2002 erv^ ~ - ~'TO~ai ~y innovative May 24, 2002 media Bob Vogel, Chair, Economic Development Commission , David Olson, Community & Economic Development Director and • Ann Flad, Economic Development Coordinator. Lakeville City Hall srrategv 20195 Holyoke Avenue Lakeville, MN 55044 ror Dear Bob, David and Ann: wears • Thank you for the meeting Friday about the Commission's interest in developing a • proactive public information program for your community's residents on future after development. We commend you for initiating. communications with the public about - yourvision as opposed to trying to react when events start happening! 'wears We are the right group to work with you on this project., The individuals on our team : ~,ext have worked closely with other cities, including St. Paul, Richfield and Arden Hills on , development-related communications. In addition, our principals have worked with both commercial and residential real estate development firms: Some of the projects on which we have provided communications .counsel and implementation -from government ~pprovat processes to marketing the properties -include:. ~ ~4s Grand ¦ Best Buy Co. Lnc.'s relocation of its •corporate headquarters to Richfield. Avenge ¦ .The Vlla}e at St: Anthony Falls - a mixed use redevelopment in Northeast Minneapolis comprised of condos, townhomes, affordable apartments, office space and retail. ~ suite ¦ St. Paul's Upper Landing - a redevelopment of a former Superfund site on the St. -200 Paul's riverfront This project will include greenspace and as many as 600 homes. ¦ The Ciry of Arden Hills is in the process of trying to acquire the former Twin. Cities Army Ammunition Plant for amixed-use redevelopment. We are working with a saint . team led by Centex, which was named tentative master developer last month. Pa"i To conclude, we've worked on all sides of development issues throughout the Twin Minnesota Cities. Our team includes former city, state and federal government staff who understand the workings of local government. We believe our depth of experience will be of immediate value to you. 55 X05 S~inc/erely, l.~r 651-221-1999 Wendy B Client Services Director & ' Senior Counselor 651-221-4440 ~www.mn-politics.com t~~~,nrrr.e-strategy.com _ NEW SCHQOL I N y innovative media and strategy - for what's PROPOSAL FOR PUBLIC INFORMATION SERVICES otter FOR THE CITY OF LAKEVILLE what's ECONOMIC DEVELOPMENT COMMISSION next' May 24, 2002 ' 748 Grand Avenue _ Suite 200 Saint ' Paul Minnesota 55105 . n r~ n 651-221-1999 New School Communications, Inc. _ 748 Grand Avenue, Suite 200 St. Paul, MN 55105 65 i -22 ~ =44ao 651-221-1999 (T~ 651-221-4440 (F) www.new-school.com ~:-:,ry _ www.mn-politics.com ~s w w ~~i. e-strategy. c om Proposal for the City of Lakeville Economic Development Commission/page 1 T . INTRODUCTION Develop. a communications plan that supports the Economic Development Commission's Strategic Plan with the participation of economic development staff and commission. { Based on a review of the communications materials provided by you; a review of -the survey results from Decision Resources; and your desire to prioritize " communications about economic develaprnent, New School proposes to work with the EDC to develop a work plan and .timeline that includes the following . " components: , ¦ Research/Situation Analysis o Audit of targeted. audiences o Use research conducted in November 2001 ¦ Goals ¦ .Strategy -how will communications support achievement of the - organization's goalsl ¦ Key audiences ¦ Key messages ¦ Tactics- fromstrategy together. we would develop tactics that may include the following vehicles: o Creation of a graphic identity for the EDC o Segregation of public information about economic development to increase its emphasis o Solicit: speaking opportunities by building a speakers' bureau o Develop apresentation/Powerpoint o Draft op-eds/letters to the editor o Traveling display . o Produce a video to be aired before civic groups, available at libraries and on local government and public access cable stations o Direct mail o Newsletters o Annual report o Brochure - o Media relations: _ ¦ Press releases ¦ Media interview training ¦ Identify trends and opportunities to make news ¦ Identify reporters who cover these issues and community ¦ Meetings with editorial writers, editorial boards o Website page or site . ¦ Timeline ¦ Budget Proposal for the City of Lakeville Economic Development CommissionJpage 2 Evaluation _ As part of the communications plan, we can discuss whether current . communications vehicles are effective or whether changes could increase . • delivery of messages to target audiences. _ In addition, we can coordinate production of these materials for the EDC. ~f it is decided that new m~teri~ls will be produced we can provide a budget estimate at that time. J Proposal for the City of Lakeville Economic Development Commission/page 3 ~ - 2. CtUALIFICATIONS AND EXPERIENCE _ - Named by CityBusiness as one of the region's top 25 public relations firms, New School Communications is one of the region's fastest growing, full-service public relations firms. New School's p~`actice areas emphasize: strategic , .communications planning, public affairs, media relations, leadership and crisis communications. Our diverse client base extends from nonprofit organizations -and startups to Fortune 500 companies, and our experience cuts across industries to bring expertise in the areas of transportation, reel estate development, education, legal affairs, technology, new media, telecommunications,. health. care, nonprofit and government organizations. New School was. founded in 1998. NEWSCHOOL PRACT/CEAREAS ¦ Strategic Communications Planning and Counsel ¦ Public Affairs - ¦ Media Relations &-Media Training , • New Media: Design, Content Development & Management ¦ Marketing Communications ¦ Crisis Communications NEWSCHODL EXPERT/SE/N THEAREAS OF _ ¦ Real Estate Development ¦ Transportation • Issue Advocacy ¦ Government ¦ Community Relations ¦ Education ¦ Nonprofits ¦ Legal Affairs/Litigation Support;/Law Marketing ~ ' ¦ New Media ' ¦ Health Care ~ ~ - ¦ .Startup Companies ¦ Technology/Telecommunications ~ ~ " ¦ New Media ¦ Consumer Products/Retail NEWSCHOOL CL/ENTS ~ ¦ .Transportation > Metro Transit > Metropolitan Council > Ramsey County Regional Railroad Authority ¦ 2ea/Estate Deve%pment " > Bejco Development Corp. " > Centex Multi-Family Homes , f Proposal for the City of Lakeville Economic Development Commission/page 4 > Dominium, Inc. _ ~ . > Exeter . > Garrison Partners . - - > HuntGregory > Metro Plains Development > Saint Paul Cathedral: > Wild Meadows ~ ~ . ¦ Community Re/ations Best Buy. Co~ Inc. , > Great North Alliance > Greet Plains Institute for Sustainable Development > Saint Paul Riverfront Corporation ' • Consumer Products/Retail > Shamrock-rrRoll > Soccerpocs . > Slumberland _ > VirtualFlorist.com ¦ E-strategy. , > Riverview Corridor > MN-Politics.com ~ • • > Soccerdocs.com > Web, White end Blue ~ ~ - > TheGreatNorth.com _ > Politics in Minnesota:. The Online Directory ¦ Education " > Hubert H. Humphrey Institute of Public Affairs > St. Louis Park Public Schools > University of Minnesota -College of Liberal Arts ¦ Grassroots Organization, . > Devvey Square Group - . > Minnesota Alliance for Telecommunications Competition > Minnesotans for School Choice > National Committee to Preserve Medicare ¦ Health Care > Community Intervention, Inc. > Gillette Children's Specialty Healthcare > The Minnesota Academy of Ophthalmology - MN Eye MDs - > Minnesota Society of Anesthesiologists - ~ - >Minnesota Oncology Hematology P.A. > National Committee to Preserve Medicare > Red Cross North Central Blood Services . - - ~ .Proposal for the City of Lakeville Economic Development Commission/page 5 - - ¦ /nvestor ReNations i > Daktronics ¦ Lega/Affairs/LitigationSupport/Lega/Marketing > Hogan & Hantson > Lockrldge Grindal Nauen, P.L.L.P. > Meyer & Njus > Oppenhe(mer:Wolff and Donnelly - > Pr(tzker & Associates, P.A. ' > Rosenfeld Meyer and Susman, L.L.P. - ¦ Nonprofits > National Institute on Media and the Family ~ _ > Minnesota Alliance for Telecommunications Competition, ' ¦ Pub/ishing/Media Partnerships and Production ~ . > Face2F~ce > JunoBe~ch.com - > Key Investment, Inc. > Latino Commun(cations Network _ > MN-Politics.com - > Politics in Minnesota: The Directory - >Twin Cities Business Radio ¦ Techno%gy ~ . > Daktronics > e-citydesk.com > PAGE Technologies > C~west > schoolbetl.com > SSESCO > Virtual#lorist.com ¦ Trade Associations > American Specialty Toy Retailers Association > Great North Alliance > Minnesota AI(iance for Telecommunications Competition New School and its staff are members of the Saint Paul Chamber of Commerce, ` the Minnesota Chapter of the Public Relations Society of America, and the Minnesota Chamber of .Commerce. Proposal for the City of Lakeville Economic Development Commission/page 6 . 3. TEAM , The New School team will bring to this project many years of experience working with high profile, complex organizations to provide public affairs, create marketing plans, communications.. programs and project management. Because of her experience with government and development, New School client services director and senior counselor Wendy Burt will be_the overall strategist of the project. Ted: Davis, Blois Olson end Mike Zipko would provide counsel and services as appropriate for Lakeville's needs.. , Blois R. Olson Founding Partner Blois Olson leads New School. Communications with a broad background. in public affairs, media relations and campaign management. Specializing in . innovative strategies for small businesses and public affairs organizations, he is well known for his media relations and public relations, as well as his political and media pundit work. . ~ , Blois founded New School to focus on developing, implementing, and placing positive media and public relations strategies for small organizations and entrepreneurial companies in business and public affairs. Nevv School is one of the fastest growing firms in Minnesota, and media throughout the world have covered its clients. The marriage of public affairs and media came at ~ very young age for Blois. Asa paperboy in Shoreview, Minnesota, Blois read the day's stories while he walked from house to house. This fascination with the daily. workings of the world and the ways in which we learn about them increased as he grew up. Because of his success in campaigns and his flair for all things related to political media, Blois went to work in Washington D.C. after he graduated from college. Specializing in media relations, Blois worked closely with the national and ' regional media, politicians, lobbyists and media relations experts. While-working i in Washington he was tapped to manage a congressional race in his home state fora 20-year incumbent. After finding success in the political arena,: Blois turned to the private sector. He went to work for a small public relations firm in Saint Paul, focusing on media relations and grassroots public affairs. While representing major public and . .private clients, Blois developed working relationships with members of the national and local media ' Eventually, Blois struck out on his own and founded New School Communications, apublic affairs firm focused on political and legislative media ~ ~ - strategy. He worked on over 100 campaigns and became a regular commentator on local and national television and radio, Proposal for the City of Lakeville Economic Development Commission/page 7 While working in politics, Blois gained ~ nationwide reputation as a rising star in political media relations. But as New School Eomrnunications grew, Blois found. himself and .his business ever more involved with new media and the new economy. Knowing that challenging work would keep business and life energetic and interesting, Blois left campaigns in mid-1998 to refocus New School Communications on start-ups, technology companies, new media . . development,. and public affairs. He is also co-publisher of the popuhr Web site ~ . MN-Politics.corn and Politics in Minnesota: The Directory @ MN-Politics.com Blois' political analysis has been featured on CNN, MSNBC, The New York Times, National Public Radio, Newsweek, Newsweek-Asia, Agence Press France, and numerous regional and local media outlets. Wendy Burt APR Client Services Director and Senior Counselor Wendy Burt is an Accredited public relations professional with 17 years of experience in public,relations. As Client Services Director and Senior Counselor of _ New School Communications, Wendy is responsible for business development, planning and. managing implementation for a diverse base of clients from nonprofits and startups to Fortune 500 businesses. Before joining New School Communications in February 2002, Wendy was ~ President and Founder of BZ Public Relations, lnc., a strategic communications firm.based in Saint. Paul. In May 2001, Wendy was named one of "Forty Under ' 40" young business leaders by CityBusiness and vvas profiled as one of :five "advertising, PR and marketing gurus." _ From 1'997-2000,. Wendy was the spokesperson for the Metropolitan Airports Commission in Minneapolis-Saint Pau! where she directed external and'internal communications. for the Minneapolis-Saint, Paul internationaF Airport and reliever airports. In 1998 and 1999, Wendy won 1 1 awards on behalf. of the MetropolitanAirports Commission from. the Public Relations Society of America- Minnesota Chapter and the Airports Council International for integrated communications programs and program elements. Prior to joining the Metropolitan Airports Commission, Wendy served as a Presidential appointee in the Clinton Administration. From 19941997, Wendy , was the associate director of public affairs of the U:S. Department of Transportation. From 1993-1994, Wendy was a publicaffairs specialist for the U.S. Secretary of Defense. In addition, Wendy was part of White .House advance teams that made detailed, logistical arrangements for international and domestic visits by the President and First Lady. Proposal for the City of Lakeville:Economic Development Commission/page 8 Before being appointed to President Clinton's administration, Wendy was the ~ ' director of the media center for the 52"d Presidential Inaugural Committee. In the - 1992 presidential campaign, she managed media arrangements. In Minneapolis from 1989 to 1992, Wendy was a public relations consultant for Himle Horner Inc. Prior to that, she served for five years as the communications director and scheduler for the Minnesota Attorney General ~ - Wendy is a journalism and political science graduate of the University of St. Thomas in Saint Paul , Wendy is a member of the Public- Relations Society of America and a member of ' the Saint Paul Chamber of Commerce. Ted Davis, APR Managing Partner Ted. Davis has helped executives and organizations seize opportunities through strategic communications for more than 15 years. He counsels business and community enders on .communications strategy, media relations, and grassroots organization. R veteran of political campaigns, Ted reaches clients' customers and constituents with rnessages that inspire them to action. - Prior to joining New School, Ted developed and directed a communications ' strategy that helped the University of Minnesota secure $18.5 million in state - funding fora new Art Education Building. Conducting a campaign that worked closely with the governor's office, the state legislature, College of Liberal Arts - Administration and student groups, the team was able to convince state .leaders of the need to fund a new Art Building despite an initial lack of gubernatorial grid legislative support for the building. - - Before striking out on his own, Ted served as Communications Director for the Saint Paul Area Chamber of Commerce. At the Chamber, he directed - communications and grassroots strategy for the business community's successful effort to secure state funding for a new arena at RiverCentre. He planned and executed the unified media relations strategy for the east metro business community and often served as spokesperson. Acting as chief speechwriter for chamber officers, Ted was part of the team that brought the America's Smithsonian exhibition to Saint Paul .During his tenure, the Chamber reached - new heights in effectiveness, visibility, public influence, and membership growth. Ted has also served as Communications Director for the Saint Paul Public Housing Agency. Positioning the agency's executive director among the top public housing administrators in the nation, he gained national media coverage for the agency as the top organization in its industry. Proposal for the City of Lakeville Economic Development Commission/page 9 A resident of Saint Paul,. Ted has been active in the cQrnmunity for many years. He has served on the Mayor's Information Technology Council, as co-chair of the Leadership Saint Paul Program Committee, as board chair for the Saint Paul Neighborhood Network, as a Director of the Minnesota Twins Rookie League, and as a Director for the Minnesota Chapter of the Lupus Foundation of America. Ted has also worked as a journalist, as a consultant. on federal legislation. fora . national professional association, and managed marketing for a national professional education program. He is accredited by the Public Relations Society of America and holds a bachelor's. degree in journalism from the University of Minnesota School of Journalism and Mass Communications where he currently serves as an adjunct instructor. Mike Zipko Senior Counselor Mike Zipko works with New School clients to help develop effective communications strategies that solve problems, achieve results, meet challenges and take advantage of opportunities. Today it is not enough to just know what stories are in the news each day but one must understand why a story generates _ interest and the impact it can have on customers and the general. public. Mike's ' background and years of experience brings this important insight to New School and our clients.:.. Having once. had dreams of being a print reporter, aone-day ride-along in - college with a KSTP.TV news reporter introduced him to the power and impact of television news. He spent the next eight years gathering valuable experience inside Twin Cities television newsrooms; working first as an unpaid intern, an overnight dispatcher monitoring police radios and eventuaNy as an assignment editor and producer covering major news events. He also developed and planned stories for different newscasts. Throughout this time he developed an even stronger understanding of how the media worked, how decisions are made in newsrooms and what makes a story work. Throughout his time in the newsrooms, Mike also spent considerable time covering politics, campaigns and watching Minnesota politics from a unique vantage point. When the opportunity developed to explore his passion for politics, Mike moved to the other side of the media line and into politics and public affairs. He has worked with. Democrats, Republicans, and Independents including:. Governor-elect Ventura,. Minnesota Governor Arne H. Carlson, Saint .Paul Mayor, Norm Coleman and a number of other state and local elected officials and campaigns. Outside of politics he has helped develop and execute phns for - companies to introduce new products and services, musicians to promote concerts and new albums, and non-profit organizations to promote events, . issues, and attractions. Proposal for the City of Lakeville Economic Development Comrni'ssion/page 10 He has helped clients successfully. work with national and international media _ outlets ranging from A&E's Biography, USA Today, People, the Australian Today Show, Dateline NBC, the Washington Post, New York Times, to local and _ . community papers, radio stations and television newsrooms around the country. In each case, Mike's focus has been to help people decide what the right objective is and how to best work with the media to achieve success. Mike's interest in the media also extends into. new media. He is one of the , founders of JunoBeach.com, an online independent music marketplace and radio station that helps new artists reach new fans through daily online music broadcasts. The four year-old business has helped bands from ground the country sell their music to fans around the world. He is also a co-founder of Phase 2 Interactive, an emerging webcasting company. Phase 2 has developed a low bandwith/high impact to help clients better use streaming technology to reach audiences ranging from virtual tours to . infomercial content and e-shopping that is accessible to the vast majority of internet users. Proposal for the City of Lakeville•Economic Development Commission/page 1 1 4. BUDGET ESTIMATE ~ - New School partners and senior counselors are billed at $150/hour. Account executives are billed at $100/hour and support/admin staff are billed at $ 50/hour. We bill by the hour, or are willing to provide our clients with aproject - • cost or retainer agreement.. Expenses are in addition to our fees, and include items such as graphic design, printing, event costs, production, etc. ~ • :r . If you decide to work with us, a letter of agreement will spell out the billing in detail and a project scope will explain the. work vve agree to pursue. We will work with your budget to achieve the goals of your effort. Given the . discussion Friday, we estimate monthly fees of approximately $2;500-5,000. W~ will help you prioritize and provide the-most value for your dollar. The suggested tactics are a sampfie of activities we could do. Some of them may be able to be implemented by the City or use existing materials. The EDC could pick and _ choose as well when a final communications plan is completed. The following budget estimate includes fees and expenses:. Development of aplan/strategy meetings $1,500-3,000 Creation of ~n EDC graphic identity $600-3,000 Solicit speaking opportunities $1,500-2,500 . - • Develop apresentation/PowerPoint $1,200-4,500 Draft op-eds/letters to the editor _ $1,500-2,500/piece Traveling display. Produce internally Produce a video to be aired before civic groups, ~ • avaihble at libraries and on local government and public access cable stations $ 7,000-12,000 Direct mail $3,500-$6,000/letter Newsletters Use existing • Annual report $3,000-10,000 .Brochure $.1,500-3,500 Press releases $1,000/release Media interview training $2,500 ~ Proposal for the City of Lakeville Economic Development Commission/page 12 Develop media list to identify reporters who cover these issues and community - $300-600 Meetings with editorial writers, editorial boards $300-900 Website page or site write copy, design and _ - host within the City) $2,500. Total $ 27,900-51,000 - ~ 7 i. - - \ ~ i Agenda Item MEMORANDUM TO: Economic Development Commission CC: Robert Erickson, City Administrator David L. Olson, Community & Economic Development Director FROM: Ann Flad, Economic Development Coordinat~'`;y=--~° DATE: June 19, 2002 RE: Work Plan Goal #1: Educate residents on benefits of C/I - Spotlight on Business The "Spotlight On Business" program continues to be well received by the businesses featured and by the business community as a whole. The City Council approved the "Spotlight on Business" program at their February 25, 2002 work session with the request to feature one to two businesses at each City Council meeting. Consistent with Goai #1 of the Strategic Work Plan, this program provides a forum to share informatiur~ on tree benefits of having a business base in the community. Information about the featured business is presented by an EDC member and includes the dollar amount of taxes paid by that business. Per Commissioner Jerry Erickson's suggestion, staff contacted the This Week Life & Times. They have agreed to publish press releases regarding the businesses featured in the "Spotlight on Business" program. Comm. Miller introduced Mike Muller of Lakeville Muller Theater, Barry Pogatchnick introduced Tom Everett of Strout Plastics, Tom Smith introduced Tim Peterson of Southfork and Dan Shimek of Hearth Technologies, and David Olson introduced Glenn Haase of Ryt-Way Industries at recent City Council meetings. See attached memos that were presented to the City Council regarding each Spotlighted business. Please review the attached schedule to confirm the date of your Spotlight on Business presentation. The time commitment includes approximately 15 minutes during the day or directly prior to the City Council meeting to review the presentation with the cable department staff, and approximately 20 minutes to attend the Council meeting. EDC presenters are asked to be at the Council Chambers at 6:45 in order to meet the business representative before the meeting begins at 7:00 p.m. a f 2002 "Spotlight on Business" EDC Member Sign-Up EDC MEMBER DATE CONFIRMED COMPANIES Bob Vogel March 4 Progressive Rail Jim Emond March 18 Americlnn Jack Matasoskv April 1 Verified Credentials- Steve Spang Todd Bornhauser April 15 Toro-Gary Stone Con Agra-Paul Lapadat Dick Miller May 6 Muller Theater -Mike Muller Barrv Pogatchnik May 20 Strout Plastics -Tom Everett Tom Smith June 3 Southfork/Snyders-Tim Peterson Heat-N-Glo -Dan Shimek Dave Olson June 17 Ryt-Way -Glenn Hasse Bob Brantly July 1 Belzer's -Jeff Krapu Jeannie Schubert July 15 Jim Emond August 5 DHY -Ken Owen Bob Brantly August 19 New Morning Windows -Alexis Bloomstrand September 3 Imperial Plastics -Norm Oberto Bob Vogel September 16 Jack Matasoskv October 7 October 21 November 4 November 18 December 2 December 16 MEMORANDUM TO: Mayor and City Council City. Administrator CC: David L. Olson, Community & Economic Development Director FR: Ann Flad, Economic Development Coordinator .DATE: April 30, 2002 RE: Spotlight on Business: Lakeville Muller Theater The purpose of the Spotlight On Business program is "to inform and educate residents on benefits of C/I base to gain community support and appreciation for business growth" (Goal #1 of the Economic Development 2002 Strategic Work Plan.) Muller Family Theater of Lakeville .has been selected as one of the next businesses to spotlight. EDC member Dick Miller will be in attendance at the Council meeting to present information on Muller Theater and introduce Mike Muller, President and CEO of Muller Family Theaters. Muller Theater of Lakeville is located at 20653 Keokuk Avenue near County Road 70 and I- 35. The company opened its Lakeville location in 1999. Muller Family Theaters is the. 3ra largest motion picture theater company in the Twin. Cities metro area. Muller Family Theaters owns seven theaters with a total of 68 screens in the Twin Cities metro area. Muller Family Theater of Lakeville provides 18 screens in Lakeville for motion picture viewing, which allows management to offer a wide variety of the latest movie releases and also allows them to offer multiple viewing times far movies. Over 825,000 customers enjoyed the Lakeville Theater experience in 2001. According to a recent Theater Price Survey, Lakeville Theater is one of the most affordable movie theater experiences in the Twin Cities. Prices for concessions range from $.25 to $.1.75 less at the Lakeville Theater than at other theaters in the metro area. Additionally, tickets to movies at the Lakeville Theater are $7.25 each, while other theaters. charge as much as $8.75 a ticket. Lakeville Theater also provides jobs for area residents. The theater has approximately 110 employees at the Lakeville Theater. In addition to employment, Lakeville Theater provides a substantial tax benefit to the community.. The Dakota County Assessor has assigned an estimated market value of $7.1 million to the Muller Family Theater of Lakeville building and property, resulting in the company's contribution of $256,602 in local property taxes going to support the City, Dakota County, and the school district in 2002. Lakeville Theater is one of the largest taxpayers in ISD 194 and the city. J 1 MEMORANDUM TO: Mayor and City Council City Administrator CC: David L. Olson, Community & Economic Development Director FR: Ann Flad, Economic Development Coordinator DATE: May 15, 2002 RE: Spotlight on Business: Strout Plastics The purpose of the Spotlight On Business program is "to inform and educate residents on benefits of C/I base to gain community support and appreciation for business growth" (Goal #1 of the Economic Development 2002 Strategic Work Plan.) Strout Plastics has been selected as one of the next businesses to spotlight. EDC member Barry Pogatchnik will be in attendance at the Council meeting to present information on Strout Plastics and introduce Dick Grass, Ex#ruding and Quality Manager of Strout Plastics. Strout Plastics is located at 21860 Hamburg Avenue in Airlake Industrial Park. The company has been in business for forty years, and has been at its Lakeville location since 1968. Strout Plastics-has another facility in Bloomington. Strout Plastics manufactures polyethylene films and printed plastic bags. At Strout, polyethylene resin pellets are extruded into plastic films that are printed or converted into value added products. Strout supplies a variety of packaging markets including food, soft goods, retail, entertainment, airlines, medical/dental., horticulture, hazardous waste, and trash disposal. The company supplies films and bags for customers throughout. the United States, including the Mail of America, Northwest Airlines and Universal Studios. The Lakeville facility takes post-industrial and post consumer film scraps and recycles it into resin pellets.. Up to one million pounds of film scrap a month is recycled, making the Lakeville facility one of the largest recyclers of polyethylene. in the Midwest. In addition, Strout Plastics Lakeville facility produces very large bags used as hazardous waste liners in haul-off dumpsters and .dump trucks. Strout Plastics also provides jobs for area residents. The Lakeville facility has 19 full time employees, and in addition, uses temp service workers as needed. In addition to employment, Strout Plastics provides a substantial tax benefit to the community. The Dakota County Assessor has assigned an estimated market value of $1.2 million to Strout Plastics Lakeville building and property, resulting in the company's contribution of $44,202 in local property taxes going to support the City, Dakota County, and the Independent School District 194 in 2002. MEMORANDUM TO: Mayor and City Council City Administrator CC: David L. Olson, Community & Economic Development Director FR: Ann Flad, Economic Development Coordinator DATE: May 30, 2002 RE: Spotlight on Business The purpose of the Spotlight On Business program is "to inform and educate residents on benefits of C/I base to gain community support and appreciation for business growth" (Goal #1 of the Economic Development 2002 Strategic Work Plan.) Snyder Drug has been selected as one of the next businesses to spotlight. EDC member Tam Smith will be in attendance at the Council meeting to present information on Snyder Drug and introduce Tim Peterson, owner of Snyder Drug and principal in D&T Properties which owns Southfork Center. Snyder Drug is .located in the Southfork Center at 17705 Kenwood Trail near County Road. 50 and I-35. Southfork Center was built in 1984 and was purchased by D&T Properties in 1989, at which time Snyder Drug located at Southfork Center. Southfork Center is the location of eleven (11) service and retail establishments. including Snyder Drug. The other businesses in Southfork Center include Our Family Foods, Groomingdales, Lakeville Floral, Tak Shing, Mr. Movies, and others. Snyder Drug is a neighborhood drug store which provides prescriptions, one-hour photo developing, cards, gifts and other items to consumers. Snyder Drug is noted for its exceptional customer service. Owner Tim Peterson sits on the Independent Advisory Board for the Snyder franchise, Additionally, Mr. Peterson and his wife Roz have been active in the Lakeville Area Chamber of Commerce, the Lakeville Rotary Club, Ducks Unlimited, Hosanna! Lutheran Church and the Robert B. Lewis House. Snyder Drug also provides jobs for area residents. The store has approximately 25-30 employees. In addition to employment, Southfork provides a substantial tax benefit to the community. The Dakota County Assessor has assigned an estimated market value of over $2 million to the Southfork building and property, resulting in the company's contribution of $72,921 in local property taxes going to support the City, Dakota County, and Independent School District 194 in 2002. MEMORANDUM TO: Mayor and City Council City Administrator CC: David L. Olson, Community & Economic Development Director FR: Ann Ffad, Economic Development Coordinator DATE: May 30, 2002 RE: Spotlight on Business-Hearth Technologies The purpose of the Spotlight On Business program is "to inform and educate residents on benefits of C/l base to gain community support and appreciation for business growth" (Goal #1 of the Economic Development 2002 Strategic Work Plan.) Hearth Technologies has been selected as one of the next businesses to spotlight. EDC member Tom Smith will be in attendance at the Council meeting to present information on Hearth Technologies and introduce Dan: Shimek, President of Hearth Technologies. Hearth Technologies is Jocated in Fairfield Business Campus at 20802 l<ensington Boulevard in Lakeville. The company has been at this location since 1998. Hearth Technologies is a manufacturer and. distributor of fireplace and hearth products. Products include gas fireplaces, multi-sided fireplaces, wood burning units, slim-line units, and other unique fireplace and hearth products. They have successfully merged several competing. brands, including Heatilator, Heat-N-GIo and Quadrafire. Hearth Technologies has grown their business from $100million in sales to $450 million. The company has been awarded numerous patents and won last years Vesta Award for the industry's best fireplace products. Hearth Technologies products are used by builders, remodelers and homeowners.. The company has supply agreements with 9 of the top 10 homebuilders in the United States, including-Centex and their neighbor, D.R. Horton. Hearth Technologies provides employment opportunities in Lakeville as well. The company's Lakeville facility employs 131 area residents. In addition to employment, Hearth Technologies provides a substantial tax benefit to the community. The Dakota County Assessor has assigned an estimated market value of over $4 million to the Hearth Technologies building and property, resulting in the company's contribution of $147,599 in local property taxes going to support the City, Dakota County, and Independent School District 194 in 2002. f MEMORANDUM TO: Mayor and City Council. City Administrator CC: David L. Olson, Community & Economic Development Director FR: Ann Flad, Economic Development Coordinator DATE: June 14, 2002 RE: Spotlight on Business: Ryt-way Industries, Inc. The purpose of the Spotlight On Business .program is "to inform and educate residents on benefits of C/I base to gain community support and appreciation for business growth" (Goal #1 of the Economic Development 2002 Strategic Work Plan.) Ryt-way Industries, Inc. has been selected as the next businesses to spotlight. Community & Economic Development Director David Olson will be in attendance at the Council meeting to present information on Ryt-way Industries and introduce Glenn Haase, President and CE0 of Ryt-way Industries, and Tim Haase, Assistant to the. President of Ryt-way Industries. Ryt-way Industries is located in Airlake Industrial Park. The company was established 37 years ago in Northfield. Ryt-way moved their distribution center to 21855 Cedar Avenue in 1.988. Their manufacturing facility was moved to 21850 Grenada Avenue in 1993, and their Corporate Headquarters was located at 21750 Cedar Avenue in 1999. Ryt-way Industries is a contract food blending. and packaging company. They receive ingredients and packaging supplies from most the top food companies such as Nestle, Kraft,. General Mills, Campbell's and Quaker Oats. Ryt-way then combines the ingredients and packages the food for distribution. Ryt-way often supplements a company's standard manufacturing processes. Additionally, Ryt-way may blend and package new product lines for companies. Ryt-way is currently specializing in cereal bowls for airlines, cups of instant soup, cups of instant oatmeal, microwave popcorn, snack mixes, and dinner kits. Dinner kits usually include pouches of pasta, seasoning and sauce. The consumer adds meat to the dinner kit resulting in a complete meal. Ryt-way also has its own powdered milk product for Institutional and Retail markets. Ryt-way produces 20 to 40 semi-trucks of packaged food per day. Product is shipped via truck to customers' distribution centers. Ryt-way also provides jobs for area residents. The company has approximately 400 full time employees and uses up to 200 temporary workers when needed. In addition to employment, Ryt-way provides a substantial tax benefit to the community. The Dakota County Assessor has assigned an estimated market value of over $9 million to Ryt- way's buildings and property, resulting in the company's contribution of $ 331,644 in local property taxes going to support the City, Dakota County, and Independent School District 192 and Independent School District 194 in 2002. Agenda Item ~ 1 MEM~~ANDUM TO: Economic Development Commission CC: Robert Erickson, City Administrator. .David L. Olson, Community & Economic Development Dir for FROM: Ann Flad, Economic Development Coordi ~ l DATE: June 19, 2002 RE: Work Plan Goal.#3: Encourage Investigation of Critical Business Lnfrastructure - E-Commerce Certification At the January 29, 2002 EDC meeting, Commissioners moved "to direct staff to pursue E-commerce Certification with the assistance of Frontier Communications on the basis that it is consistent with Goat #3 of the City's 2002-2004 Strategic Plan .for Economic Development." Lakeville will formally be awarded certification at an` E-Commerce Certification event on June 25, 2002 from 4:30 to 7:00 p.m at the Lakeville Area Arts Center. Commissioner Rebecca Yanisch of the.Department of Trade & Economic Development will: present Mayor Johnson with the certification. EDC members are strongly encouraged to attend and to bring other guests :with them. E-Commerce certif'rcatiorr is beneficial when recruiting businesses to the community. The certification is a method of telling business people that Lakeville has the infrastructure and service that can accommodate their needs. This certification "sends a strong signal to entrepreneurs" said Bob Erickson in a recent Star Tribune article (see attached.) _Lakeville is only the second metro-area community to receive this certification. Municipalities pursue e-commerce ready certification Page 1 of 3 news freetime -travel - homezone -cars -shopping - workavenue -communities metro ~ region - natipn r world -politics -business -sports -variety - apinian -fun & games -talk ,i twl~ Retatec - , . in thls Issue. - B Who's - - commE _ _ Email t Municipalities pursue e-commerce ready certification ~ Print it Larry Werner Search ~ Star Tribune " ~ Published Jun. 17, 200?_ index views Lakeville and Lakefield don't have a lot in common, other than .their ap business .names and cit administrators named Erickson. Lakeville is afast- Find it! neWS Y More search technology growing suburb of 43,128 people on the southern edge of the metro area; business Lakefield is a farm town of 1,721 near the Iowa border. CERT1 calendar business forum But both are among 21 Minnesota cities recognized as "e-commerce certified" by the State Department of Trade and Economic Development. company The cities sou ht that certification because leaders of each communit earnings reports g Y company press believe that high-speed Internet access and other components of releases technology infrastructure will serve their very different economic- data bank development goals. everybody's business "Look at our Web site and it says Lakeville is e-certified, and it sends a photos strong signal to entrepreneurs," said Bob Erickson, city administrator of business Lakeville in Dakota County. "It's a shingle we can hang out and say to projects companies, 'We're ecommerce ready,' "said Mark Erickson, .city. 2002: economic administrator of Lakefield in Jackson County. forecast mn tobacco A 19991aw gave cities the opportunity to apply for e-commerce settlement certification by establishing that they have a high level of star tribune ~ 00 telecommunications resources, and substantial use of the Internet by executive government, schools and businesses. The designation authorizes the compensation community to advertise itself as "e-commerce certified." top 25 grantmakers One requirement for e-commerce certification is that high-speed Internet nonprofit 100 access .(256 kilobits per second for residents and 512 kilobits for , archive businesses) be available community-wide. stories. Mark Lofthus, director of marketing and business development with the photo reprints .Trade Department, said four or five cities have been turned down for projects certification so far. He said the certification establishes that a city has contact us "done an examination of their local telecommunications and has the corrections capacity to do electronic commerce." feedback Lakeville and Oakdale are the .only two suburban cities certified since the program was created by the 1999 Legislature. The other 19 e- commerce-certified towns are, like Lakefield, rural communities. . http://www.startribune.com/stories/535/2905818.htm1 06/ 17/2002 Municipalities pursue e-commerce ready certification Page 2 of 3 Mark Erickson said many rural communities are in position to demonstrate e-commerce readiness because the Minnesota Association of Rural Telecommunications has made it a priority to make DSL as available as possible. Loftus of the Trade Department said it doesn't surprise him that neither of the core cities and only a few suburbs have applied for certification. "Smaller rural communities look at their economic development tools a little more aggressively than metropolitan suburbs," Loftus said. "People in metropolitan areas take their telephone services more for granted than in rural areas." That can be a mistake, Lakeville's Erickson says. Proximity to the big cities doesn't necessarily mean high-speed Internet access. In cities such as Woodbury, Coon Rapids and Blaine, high-speed Internet service is hit-and-miss. Lakeville had similar problems, but improved high-speed availability. by pressuring the companies that provide the city. with telephone and cable services Frontier Communications and Charter Communications, respectively to expand broadband services. The payoff The strategy is paying off. Ann Flad, economic development coordinator for Lakeville, said either DSL or cable-modem service can be obtained virtually anywhere in the city. And on June 25, Lakeville will receive its certification from Trade Commissioner Rebecca Yanisch. The ceremony will be nice, Erickson said, but the real payoff comes when the city is talking to potential new businesses. "A large retail distribution facility is looking at four different cities, and we're one of them," Erickson said. "One of the important issues for them is high-speed technology so they can link with corporate entities. throughout the state. Technology is part of that equation." He said advanced technology is essential to recruiting high-tech companies to the city, and without such "e-readiness," Lakeville probably wouldn't be able to provide acommute-free environment for the 20 percent of the city's workforce that labors from home. In Lakefield, Mark Erickson said his city's success at getting Frontier to provide DSL service and a training partnership with the technical schools in southwestern Minnesota has put his city in position to compete in the cyberspace marketplace. "No one disputes the fact that if you grow broadband access it's an http://www.startribune.com/stories/535/29~SR 18_html n~i~ ~~~nn~ Municipalities pursue e-commerce ready certification Page 3 of 3 economic engine that allows businesses in Greater Minnesota to hang on," Mark Erickson said. "We think if we put in ahigh-speed system and build a training system, not only might we be able to attract a business out here but when our residents leave after college, there's a reason for them to come back." He said two people who left the community for jobs returned after many years away to "telework" from their homes in Lakefield. State Sen. Steve Kelley, DFL-Hopkins, who .sponsored the bill that provides for e-commerce certification, said the program is just the beginning. The state might have to do more to see that Minnesota residents and businesses have access to the latest in telecommunications services. "I'm encouraged there are that many cities that think it was worthwhile to do" the certification, Kelley said. "My real concern is that in some communiries you can have a hard time getting high-speed connections." Larry Werner is at lwerner@stczrtribrcne.co~ra . l ll~~} c'~~~~rf N~ Return to top Copyright 2002 Star Tribune. All rights reserved. http://www.startribune.com/stories/535/2905818.htm1 06/17/2002 Agenda ?tem #_r IYf G~1li~#~?IY Q V IVl TC"~: Economic Development Commission CC: Robert Erickson, Ci#y Administrator David L. Olson, Community & Economic Development it FROM; Ann Flad, Economic Development Coordinator DATE: June 19, 2002 RE: Work Plan Goal #3: Encourage trtvestigation of Critical Business ?nfras#ructure -Dakota County Technical College collaboration on Lakeville Technology Center Concept.... At the A,~di 03, 2402 High Tech Subcommittee meeting, the subcommitte® directed staff to maintain contact with Dakota County Technical College regarding potential collaboration on the develcment of a High Tech Business Park (see attached minutes..] Discussions ' had been on hold until the outcome of the lSD 194 referendum was known. Staff resumed conversations with Dakota County Technical College and ISD 194 staff after the referendum passed. 4n May 16, 2t)Q2, staff met with President Ron Thomas and staff from Dakota County Technical College, representatives from Metropolitan State University, and Gary Amoroso, Julia Espe, and Barb Knudsen of ISD 194. The parties discussed developing a Center that would provide courses in technical trades, t~lleg® courses for high schoolers, bachelors and masters courses, and would also have a component that cou#d serve entrepreneurs, telecommuters and customized training for -companies' er~tptoyees. Additionally, DCTC President. Ran Thomas again suggested that DGTG could possibly fund a coordinator position -who could focus their energy on dev®loping this partnership and the subsequent project. Who this person would actually work for has not been determined yet. Ron also indicated that he has been cultivating a relationship with Metro State University President Wilson Bradshaw, who is very close to the Chancellor of the university system and who will. also serve on the Chancellor's board next year. Ron believes that this project will capture. the attention of the Chancellor and the university system because of Mr. Bradshaw's interest and involvement. A draft ct>n~ept of this project was developed with input from Bch of the. e~rgani~ations. An outtirte of the potential responsibilities of the prca~tc~sed staff perm was atac? drafted. See attached Lakeville Technology Center ar'id Stat~a t~f Mit~neso#a Rositian description. Dr. Ron Thomas has a#so arranged for staff to visit`the t~nratar~ana Technology Derr can June 20, 2002 in order to evaluate the feasibility of replicating this mc>det. staff wil! be meeting with DCTC, 1SD 194 and. A~letro State Univar~ity in #tte r~ futcrre tt~ determine the next steps for the project. s HIGH TECH SUBCOMMITTEE MEETING MINUTES April 3, 2002 5:30 P.M. MARION CONFERENCE ROOM -CITY HALL The High Tech Subcommittee met on April 3, 2002 at 5:30 in the Marion Conference Room at City Hall. Members Present: Robin Selvig, Dick Miller, Bob Brantly, and Doug Thompson. Absent: none. Others Present: Community & Economic Development Director David Olson, Economic Development Coordinator Ann Flad, Cable Coordinator Jeff Lueders. Also present were David Bell and Paul Garlie of Focal. Communications. Ms. Flad called the meeting to order at 5:40 p.m. 1. PRESENTATION BY COMPETITIVE LOCAL EXCHANGE CARRIER (CLEC) FOCAL COMMUNICATIONS David Bell and Paul Garlie presented information on Focal Communications. Focal Communications Corporation (www.focal.com) is a national communications provider. Headquartered in Chicago, Focat offers data, voice and Internet infrastructure services to large corporations, Internet service, content and application providers, and value-added resellers across the United States. Focal currently services 22 major metropolitan markets. Focal's common stock is traded on the Nasdaq National Market under the symbol FCOM. Focal Communications does not install fiber optics or copper cable but instead leases other providers' infrastructure to provide service. The company recently signed an interconnection. agreement with .the Incumbent Local Exchange Carrier (ILEC), Frontier Communications, which allows them to use Frontier's lines and provide service in Lakeville. Focal then uses its own switches to route calls via their system. Focal provides telecommunications service to businesses at the T-1 level or greater. Recently, the Focal Integrated Voice & Data T1 product was launched in the Minneapolis Metro Area. This platform dynamically switches a channel on your T-1 from voice to data and vice-versa as needed, which allows integrated Internet & Voice services. Corporations can also use Focal's basic inbound/outbound service on a digital T1. Products such as DID/DOD, ISDN/PRI, Virtual OfficeTM and FocaLINCTM, provide corporations with additional telecommunications solutions. a Mr. Bell also indicated that Internet users can utilize Focal's Managed Access T1 product which provides a solution for Data Intensive users. Additionally, users of Long Distance services can take advantage of Focal's pricing strategy for Interstate, intrastate, International, 800 number and Conference Calling Services. Mr. Garlie also offered to provide the subcommittee with a tour of Focal's Minneapolis facility. Mr. Thompson indicated that he was pleased to find a CLEC that will serve the Lakeville area, as most CLECs he is aware of only serve Minneapolis and St. Paul Mr. Thompson also indicated that the Integrated Voice and Data service might be appropriate for some businesses in Airlake Industrial Park, based on his conversation with: companies during the High Tech Survey process.. Consistenf with the goal of educating the community on the telecommunications services that are available in Lakeville,. Ms. Flad suggested that the subcommittee offer to include an article in Airlake Park News about FocaPs services. Frontier and Charter have also been offered this opportunity, and Frontier provided information that was printed in the Winter, 2002 issue. 2. REVIEW PROGRESS OF HIGH TECH SUBCOMMITTEE The Subcommittee reviewed their purpose, goals, and progress. nAt their September 26, 2000 meeting, the EDC authorized the formation of a High Tech Subcommittee to explore the development of a High Tech Business Park. Development of a High Tech Subcommittee is consistent with the EDC's long- term economic development strategies, and specifically addresses the following: 1. "Research and identify fiber optics and other emerging technologies," as identified in the 2000-2001 Strategic Plan for Economic Development. 2. "Encourage additional office park/business campus development to achieve desired business mix," as identified in the 2000-2001 Strategic Plan for Economic Development. 3. "Attract and retain employers that will utilize the skills of residents," as identified in the 2000-2001 Strategic Plan for Economic Development. 4. "Encourage investigation of all potential upgrade opportunities in critical "business infrastructure" elements -phone, data, and other infrastructure, to promote positive outcomes for long term" as identified in the 2002 Strategic Plan for Economic Development. The committee held their first meeting on April 3, 2001 and identified three goals. 1. Develop a High Tech Business Park (HTBP) 2. Educate the business community on telecommunications options 3. Encourage additional telecommunications services to support Lakeville's existing business The Subcommittee discussed their progress and proposed continued efforts on their three goals as follows: 1. Development of a High Tech Business Park (HTBP) The Subcommittee has made the following progress to date: • .Met with Dakota County Technical College and explored a proposed partnership as possible catalyst for HTBP. Discussions on hold while the outcome of the tSD 194 referendum and the impact of the state budget deficit on higher education are known. Subcommittee members also noted that there is are increased vacancies in high tech industrial buildings in some portions of the Metro area. The Subcommittee has agreed to continue with the following action: • Facilitate quarterly discussion with DCTC regarding their ability to develop a technology center. • Complete E-Commerce Certification through DTED. • Coordinate an annual event, which highlights Lakeville's ability to accommodate technology businesses thus providing a foundation for attraction of a high tech anchor for the HTBP. The subcommittee talked about this in a later agenda item. 2. Educate the business community on telecommunications options The Subcommittee has made the following progress to date: • Provided opportunity to have companies put information in Airlake News. • Attending ROI (Return On Investment) seminar. The Subcommittee has agreed to continue with the following action: • Continue providing opportunities for telecommunications service providers publicize new high-speed data and voice transmission services in Airlake News and explore other avenues for them to provide information to businesses lie: Chamber.} • Active participation of EDC members & High Tech Subcommittee members, businesses in Frontier's "Telecommunications for Your Community" seminar Apri130tn • Member Selvig suggested creating a technology user's forum comprised of local business people that would continue to facilitate discussions on emerging technologies and issues in Lakeville. 3. Encourage additional telecommunications services to support Lakeville's existing business The Subcommittee has made the following progress to date: • Surveyed businesses to determine base-fine information on uses and needs. • Met with service providers and began exploration of companies' ability to provide service to Lakeville. • Encouraged telecommunications companies to put information in Airlake News. The Subcommittee has agreed to continue with the following action: • Contact service providers quarterly to stay abreast of services available to the community and .monitor their inroads in accessing business accounts in Lakeville. {eg: Qwest, Charter, Frontier, AT&T, Focal, etc.) 3. UPDATE ON E-COMMERCE READINESS CERTIFICATION The EDC moved at their January 29, 2002 EDC meeting, "to direct staff to pursue E-commerce Certification with the assistance of Frontier on the basis that it is consistent with Goal #3 of the City's 2002-2004 Strategic Pfan for Economic Development which states the EDC wilt "Encourage investigation of all potential upgrade opportunities in critical "business infrastructure" elements -phone, data, and other infrastructure, to promote positive outcomes for long term." Ms. Flad indicated that a draft application for E-Commerce Readiness Certification has been prepared. and submitted to the Minnesota Department of Trade & Economic Development (DYED.) Margaret Olson, Marketing and Business Development Manager for DYED will review the draft and will meet with staff to provide feedback on Apri12, 2002. Ms. Olson will also provide suggestions for an event at which DYED will present the City of Lakeville with E-Commerce Readiness Certification. Some components of the event that are under consideration.include the following: Potential Event Activities: • Speaker on "What E-Commerce Means to Lakeville" • DYED will present E-Commerce Certification • Demonstration(s) by Lakeville business that use technology in an innovative way • Other, to be determined Tenatlve Date: June, 2002 Proposed Location: Lakeville Area Arts Genter ti Proposed Attendees: State Representative Mary Liz Holberg State Senator Pat Pariseau DTED Commissioner Rebecca Yanisch Administration Commissioner Fischer Linda Finley, Director of the Information Superhighway Dakota County Technical College President Ron Thomas Other attendees will include the City Council, EDC, the Telecommunications Commission, the Chamber of Commerce, local media, .Frontier Communications, other telecommunications service providers, ISD 194, and ISD 192. Subcommittee members voiced support for the proposed event. The meeting was adjourned at 8:14 p.m. Notes From the Lakeville Meeting Held at Dakota County Technical College on May 16 , 2002 Present: City of Lakeville Jeff Lueders and Ann Flad Metro State University Gary Seilers and Leah Harvey Lakeville School District Gary Amoroso, Julie Espe, and Barb Knudsen DCTC Ron Thomas, Kelly Carrigan, and Gary Hebert Unable to Attend Robert Morando, ConAgra Plant Manager Carol Clark, Lakeville School District Dave Olson, City of Lakeville Introductions were made. Ron Thomas provided a bit of background information and noted that with the passing of the Lakeville School District referendum, he felt it was time to bring all interested. parties to a meeting to discuss possible educational opportunities in the City of Lakeville. Lakeville Award and Status. on High Tech Development. Ann Flad explained that Lakeville has .formed a High-Tech Subcommittee and the committee is looking at developing a high-tech business park. They pursued E-commerce Readiness Certification from the Department of Economic Development and received the certification. A formal certification ceremony is being held on June 25. Educational/High Tech Needs in Lakeville. Lakeville is growing tremendously and will be the biggest .city in Dakota County by 2020. The residents are well educated with many possessing four-year degrees. Lakeville's Air Lake Industrial Park currently houses 109 companies employing 5,000 people. Super Target and Cub Foods are building stores in Lakeville and the city receives many inquiries from other national franchises. Ann Flad noted that all businesses and industries now have high-tech needs and Lakeville is a large, untapped market for higher education. Update on DCTC. Gary Hebert discussed some of the six Minnesota Job Skills Partnership Grants which DCTC is currently involved with in providing skills-gap training to companies, as well as some of the training partnerships currently being discussed. Kelly Carrigan outlined several new programs that DCTC will begin offering this summer and fall. Ron Thomas noted that DCTC's biggest issue is space. He sees the Lakeville area as a natural extension for DCTC and Metro State. Update on Lakeville High School Technology Needs and New High School. Gary Amoroso explained that along with the new high school, the school district also plans to add on to one of the elementary schools .and to create the school district's own fiber optics system. They also have $5 million in building maintenance projects. The hope is to break ground on the new high school next May. The school board will be resolving space issues over the next six months. Programs at Metro State. Gary Seilers noted that Metro State is the "best kept secret." They enroll 9,000 students and are growing rapidly. Their college of management grew 20~ over last year and offers 10 undergraduate programs, three masters programs, a MPMA program, and an MIS program. They also provide employers and organizations with customized MBA programs.. They are always looking for new partners. Their students have historically been adults earning upper division credits. They have a small amount of full-time faculty, but. hire a lot of practitioners to teach. Next Step. It was decided that Gary Hebert, Ann Flad, a representative from the school district and a representative from Metro State will meet to develop a "picture" of what is really needed in the Lakeville area, as well as a position description for an individual. to work on this project. Ron Thomas will gather information regarding other high- tech sites and Ann Flad will put some e-commerce information together for everyone. It was agreed that the position description and the goal(s) of the "project" should be drafted and reviewed prior to June. 5. Notes prepared by Kim Gelhar, Executive Assistant to the President Dakota County Technical College Lakeville Technology Center _ ~ ~ ~i~• ~s~~ ' t r Other potential project names . University Center Lakeville Technology Education Center 'Lakeville Technology Enterprise Center Business Enterprise Park What the partners would like to achieve: , • Provide educational programs that will meet the needs of Dakota County/Lakeville area employees and residents • Develop a strong partnership between Dakota County Technical College, the City of Lakeville, Lakeville School District 194, Metro State University and area businesses • Design 2 + 2 + 2 educational pathways for area residents • Develop cutting-edge programs for enhancing business in a technologically advanced economy • Develop the educational infrastructure for the Lakeville area to offer programs at the undergraduate and graduate levels • Provide "high tech" resources, staff development opportunities and space for area entrepreneurs, telecommuters and businesses Key uses for the "Lakeville Technology Center" • Provide an array of educational programs at the center • Classroom training center available 24/7 • "High-Tech" resource center for area businesses • Educational advisors to individuals and to organizations • Business Incubator Center Clients for the "Lakeville Technology Center" • High school students • Adult learners • Employees • Established businesses • Start-up businesses/entrepreneurs • Telecommuters Steps required moving the. project forward: • Establish a position description for the "Center"Coordinator • Enter into Joint Powers Agreement • Advertise position to recruit eligible candidates • Select interview team to fill position • Hire. qualified person to a one-year position to research, design, and implement the goals of the new "Lakeville Technology Center" • Identify budgetary needs and funding sources Project Development Committee: Ann Flad, City of Lakeville Gary Sellers, Metro State University Carol Clark, ISD 194 Gary Hebert, Dakota County Technical College STATE OF MINNESOTA POSITION DESCRIPTION LAKEVILLE TECHNOLOGY CENTER COORDINATOR KIND OF WORK Project development and coordination for off-campus educational delivery. . NATURE AND PURPOSE Under general supervision, provides consulting, program development and .coordination, assessment and evaluation services, the procurement of grant and funding. assistance, liaison with local, State and Federal departments and agencies and business and industry associations in providing the educational services to the Lakeville area through project stakeholders. Performs related work as required. EXAMPLES OF WORK (A position may not include all the work examples given,~nor does the list include all that may be assigned.) Assist a Project Development Committee with representatives of all major stakeholders (DCTC, Metro State, ISD 194, City, and Business Community, and others to be determined.) The Committee will provide critical direction to the project and thus to the , staff person. Develops mechanism to evaluate the educational and technology needs of the Lakeville area by utilizing surveys, focus groups and other methods to identify the educational services desired. Prepares a feasibility study for the project for the Task Force which will include: develop a vision, mission and objectives for the project, review of similar University Center models (physical space, program. offerings, audience, partners, ownership, management, funding, etc.) Coordinates project activities by implementing a detailed work plan to achieve the objectives of the project and developing and executing all cooperative agreements, contracts, and memorandums of understanding relating to the project; giving oral presentations on the progress of the project to peer groups and other audiences; preparing and submitting required reports; and preparing and submitting the final project report to the stakeholders. Develops programs and services to provide educational and consulting services resulting in employee and organizational development that increases organizational effectiveness. Markets educational and consulting services to meet customer's specific needs Creates opportunities for individuals and organizations to acquire state-of-the-art learning, integrate technological advancements and innovations and share industry knowledge through hosting events such as seminars, conferences, symposia, and roundtables. Develops and maintains positive community and intercollegiate relations to insure the economic viability of the center and community. KNOWLEDGES, SKILLS AND ABILITIES REQUIRED Technical Competencies: Knowledge of education philosophy and practices; learning theory and practice, and needs assessment and evaluation. Skills inword-processing and spreadsheet applications in a Windows environment and the ability in statistical and presentation/graphics packages would be useful Knowledge of State and MnSCU system rules and regulations regarding providing services to business and industry, contracting with vendors/consultants, purchasing materials and supplies, documenting and reimbursing expenses. Work Management Competencies: Ability to think creatively and innovatively, sufficient to develop services and programs and write grant proposals to fund them. Ability to .plan, organize and administer multiple projects, set priorities and schedule activities. Ability to work with little direct supervision, within general guidelines and State policies, in a flexible and adaptable manner, handling multiple tasks and priorities. Establishing long-range objectives and specifying the strategies and actions to achieve these objectives. Interpersonal Competencies: Ability to communicate. orally in one-to-one, small group, large group and instructional settings at all organization levels. Skill in active listening, using questioning techniques, paraphrasing, summarizing and handling objections effectively sufficient to motivate and persuade others. Collaborative Partnerships and Networking-Represents the Center in collaborative efforts. Provides technical assistance and serves as communication liaison to external groups. Personal Effectiveness-Demonstrates personal credibility, integrity and confidence. Has a well developed self-awareness. Communicates effectively with others in writing as indicated by the needs of the audience. da Item Agen MEMORANDUM TO: Economic Development Commission CC: Robert Erickson, City Administrator Ann Flad, Economic Development Coordinator FROM: David L. Olson, Community & Economic Development Director DATE: June 20, 2002 RE: Ben Franklin Store Facade Renovation Concept The City Council approved funding. of the Downtown Code Improvement Program with 2002 CDBG funds at their January 7, 2002 meeting. This approval was consistent with the recommendation of the EDC. The City Council was also informed at that time that John and Jerry Enggren had expressed interest in the .program to renovate the facade Ben Franklin Building which they own and lease to Scott Erickson. Since January, several .meetings have been held with the Enggrens to discuss the program requirements and encourage their involvement in the program. The Enggrens have also retained the architectural firm of Charles Radloff Architects to prepare a design concept that would be consistent with Historic Fairfield District guidelines. Mr. Radloff was provided. with a copy of the guidelines and photographs of a number of new or renovated buildings in the Historic Downtown area and Heritage Commons. The attached building facade design concept has gone through several .revisions in an attempt to come up with a design that is consistent with Historic Fairfield District Guidelines, architecturally compatible. with the surrounding buildings and financially feasible for the building owners. A color plan of the proposed new facade will be available for review at the meeting. 1t should be noted that the building colors in the attached color Powerpoint slide are not necessarily the exact actual proposed colors of the building materials to be used. The CDBG assistance would be in the form a reimbursement for the building code related improvements up to a maximum of $70,000. The Enggrens are required to provide matching. funds at least on a 1:1 basis. This is identical to terms of .the. grant agreement that was approved for the Smith Dental building. City Building Official Gene Abbott has inspected the condition of the existing building and determined that the majority of the work associated with the removal of the existing facade would constitute a building code improvement. Staff is recommending approval of the proposed facade design for the Ben Franklin building. Subject to a recommendation from the EDC, the .proposed design along with a grant agreement would be brought to the-City Council for consideration. cc: Jerry and John Enggren Jody Braun Charles Radloff, Charles Radloff Architects 1y ~e ~ t i/! Srl~ ~ fI ; ; . ; ~ ~~f~ ~ ~ ~ a 1 ~ ~ ~ i l ~ ~ ~ a i y 1 k 1 ~ } ' ' i 1~ ~ ~ ~ ~ ~ ; } y ~ ~ DIY 1 f-' i t!( ~ ~ 4 ~ - ~ I x _ , .i, . { - ~ ~ s z t!!#t.~. y~ ti + t ~ i ~ ~ u i~_ , V i ~ ;I III iI O O ' ~ N N z ~fl ~ I o t Q - ~ W J QW W 0 ~ ~ i ~ ~ _ o ~ ~ z Q ~ ti ~ o r - ~ ~ ~ N~ U ~ai~ ~ ~ ~ ~ ~ t~li~av i ~ p} d m ~W Zo a o ? ~ ~ ~ F rr ~^1 a ltd W W VJ ZZ boa ~ ~z ~ ~ ~O ~ ~ C9~Z Q~ Q Z Z~ f „ 0g H.`~ W Wa'w c WD W ~Z~> ~ ~ Q Ll.. ~ W 0 o QYQ a~ Y Q W z f~ Z ~ w e J J Y Q J A ends Item S MEMORANDU~II TO: Economic Development Commission CC: Robert Erickson,-City Administrator Ann Flad, Economic Development Coordinator FRAM: David t. fJlson, Community & Economic. Development Director DATE:. June 19, 2002 RE: DRAFT Dakota County Tax Increment Financing Policy Dakota County has recently provided the City with a copy of a ©RAFT Tax Increment Financing (TIF) Policy dated 5123!02.: The City. was previously provided a DRAFT TIF Policy dated 1123102. A copy of staff comments. on the previous DRAFT policy is attached. It appears as though. the County is attempting to simplify their Policy with the most recent DRAFT. The policy is intended to limit and constrain the use of TIF for the types of projects listed below.. The policy itself is slightly more.. than one page with definitions and procedures comprising another 2 pages. The current DRAFT policy indicates the following: Dakota County will support housing, redevelopment, and renewal and renovation TIF districts that increase or have a .neutral effect on the number of affordable housing units. in the community, clearly demonstrate that they meet the "but for" test, and meet at least one of the following: 1. Provide affordable housing 2. lncfude livable community housing and provide mixed use such as a central city concept 3. Remove blight conditions and. contamination 4. Provide a net increase. ir? livable wage jobs The previous DRAFT TIF Policy included a statement that the County wrould only support Economic Development TIF Districts. that provide substantial county-wide economic benefit as determined by the County. This. provision is not contained in the latest DRAFT. Policy. Economic .Development Districts. are typically the type of TI F Districts that can. be utilized for new manufacturing and warehouse projects that are developed on previously undeveloped. sites. The .County has previously not supported this. type of TIF District. In addition, the current Draft TIF Policy does not address Soil Correction TLF Districts. The other main provision of the DRAFT Policy addresses transportation: improvements that maybe required asa result of a TIF Project.• This current DRAFT Policy indicates the County: shall require. the authority (City) to pay all or a portion of the cost of related or required improvements. to the county transportation:. system from increment revenues, if the followingconditions occur: 1. The proposed plan would, in the judgement of the county, .substantially increase the use of the county .transportation. system and require construction of road improvements or incur other transportation system costs; and 2. The transportation system improvements are not scheduled for construction within five years under the county capital improvements palm. and, in the opinion of the county, would not be expected to be needed within the reasonable foreseeable future were it not for the tax increment district. It should be noted that under Minnes©ta Statutes, he County: is provided. the opportunity to comment on proposed new or amended TIF districts. However the Gounty cannot prevent cities from approving new or amended TiF Districts that all the requirement of Minn®sota Statutes.. Staff-is in the process of preparing comments to this latest DRAFT TIF'PoGcy and would appreciate: comments and suggestions from the EDC. ' DRAFT TIF Policy-For Discussion Purposes Only Dakota County Tax Increment Financing Roiicy POLICY STATEMENT Dakota County will support housing, redevelopment, and renewal and renovation TIF districts that increase or have a neutral effect on the number of affordable housing units in the community, clearly demonstrate that they meet the "but for" test, and meet at least one of the following: 1. Provide affordable housing 2. Include livable community housing and provide mixed use such as a central city concept 3. Remove blight conditions and contamination 4. Provide a net increase in livable wage jobs Dakota County must receive sufficient information to be able to determine that the qualifying criteria has been met. Depending on the type of TIF district, Dakota County requires documentation related to: • TIF plan • qualifying inspections • analysis of net affordable housing impact within the TIF district or project area • analysis of net livable wage jobs • average market value of comparable housing in the city or area • traffic study, if appropriate As stated in state law and the Transportation Plan, the Dakota County Board of Commissioners shall require the authority to pay all or a portion of the cost of related or required improvements to the county transportation. system from increment revenues, if the following conditions occur: 1. The proposed plan would, in the judgment of the county, substantially increase the use of the county transportation system and require construction of road improvements or incur other transportation system costs; and 2. The. transportation system improvements are not scheduled for construction within five years under the county capital improvements plan, and, in .the opinion of the. county, - would not be expected to be needed within the reasonably foreseeable future were it not for the tax increment financing district. The costs of road improvements or other road costs (e.g.; traffic controls) which are in the determination of the County the result of a tax increment financing plan or an amendment to a TIF plan, will be subtracted from the County eligible project costs, with the balance of costs divided according to the cost sharing. policy of the County Transportation Plan. A County Board resolution is required for any significant deviation from this policy. Dakota County encourages municipalities to furnish TIF plans at least 45 days prior to the public hearing to coordinate the timeline of the road improvement cost estimates and the comments from the Dakota County Board. Dakota County reserves the right to identify costs after the public hearing if necessary. For projects not included in the CIP, Dakota County requires funding as stated in the Transportation Policy. Dakota County will indicate its support/non-support for municipal TIF districts via comments in a County Board resolution provided to the city except when a county board meeting is not held within the 30-day response period. The Dakota County Board must approve or disapprove all CDA TIF Districts. Dakota County encourages municipalities to 1) limit the duration of the district and supports the early decertification of all TIF districts and 2) require that TIF assistance provided in housing Draft TIF Policy 5-23-02 DRAFT TIF Policy-For .Discussion Purposes Only districts be repaid at the time the property is sold or transferred if the home appreciates in value. Dakota County will consider a municipality's history regarding compliance with Dakota County's TIF policy and state law in its deliberation. SOURCE Tax Increment Financing is governed by Minn. Stat. §469.174 - 469.1793 as amended. Dakota County Administrator Date Dakota County Public Services and Revenue Director Date Dakota County Treasurer-Auditor Date Draft TIF Policy 5-23-02 t ' DRAFT TIF Policy-For Discussion Purposes Only ATTACHMENT A DEFINITIONS Affordable Housing: Low and moderate-income rental housing districts that provide: • 20% of the units affordable to families at 50% of median income, the maximum gross rent would be 30% of 50% of median income or • 40% of the units affordable to families at 60% of median income, the maximum gross rent would be 30% of 60% of median. Homeownership options that provide: • 50% of the families served are below 80% of median income and the purchase price should not be greater than the current purchase price limit established for First Time Homebuyer programs. Contaminated: The presence of hazardous substances, pollution, or contaminants that require removal or remedial action for use Livable Community: A community that is designed with 1) mobility options such as transit, walk, bike or drive, 2) protects and enhances natural resources, 3) Provides housing choices including single-family homes, condominiums and apartments in a variety of architectural styles and prices to meet the needs of people of all ages and incomes, and 4) a plan for mixed uses such as locating housing, workplaces, shopping, daily services, schools, parks, civic places and public facilities together in an area. Livable Community Housing: Housing located in a livable community. Livable Wage Job: Jobs that pay the minimum. annual amount of money required to meet a household's basic needs, including food, housing,. health care, transportation, child care, clothing/personal and taxes. The number is typically adjusted. based on family size, whether one or two adults are working, and the household location (metro vs. out-state). Low Income Housing: Housing occupied by persons whose income is at or below 50% of the area median income. Mixed Use: Developments that include housing, varied by type and prices, integrated with commercial development and places of employment. It includes those developments being accessible by multiple transportation modes. Moderate Income Housing: Housing occupied by persons whose income is at or below 80% of the area median income. Project Area: The geographic area in which tax increment revenues may be spent. Project areas are designed by development authorities under applicable development laws. Qualifying Inspection: The inspections performed to document the status of the property to determine that the district meets the criteria as a redevelopment district, a renewal and renovation district, or other TIF district. Redevelopment: Actions taken to improve areas affected by substandard buildings, blight, railroad or tank facilities, as described by Minn. Stat. §469.174, subd. 10. Draft TIF Policy 5-23-02 DRAFT TIF Policy-For Discussion Purposes Only Tax Increment Financing: A statutory financing tool used to promote economic development, housing, redevelopment, renewal and renovation in areas where it otherwise would not have occurred. TLF enables an authority to "capture" property taxes generated by new development or redevelopment to pay for development expenses. A T{F authority captures the increase in net tax capacity resulting from new development within a designated geographic area called a TIF district. Tax Increment Financing Authority: An authority created pursuant to Minnesota Statutes to administer a tax increment financ{ng district. (See Minn. Stat. §469.174, Subd. 2.) Tax Increment Financing District: The geographic area from which tax increments are collected. The development authority defines the area in the tax increment financing plan. A district may be a contiguous or noncontiguous area within a project area. (See Minn. Stat. §469.174, Subd. 9) Tax Increment Financing Plan: A plan that must describe the project supported by tax increment financing, project objectives, development programs and activities to be undertaken, type and duration of district being created, parcels included in the district, estimated costs and revenues, impact on other taxing jurisdictions, and other details of the proposal. The TlF plan may be approved by the municipality after the required public hearing is held. (See Minn. Stat. §469.175, Subds. 1, 4.) PROCEDURES FOR CITY INITIATED TIF DISTRICTS 1) The County Treasurer-Auditor receives city TlF plans and distributes copies to the affected .departments. 2) All plans that impact a county road must include a suitable traffic study analyzing: and documenting traffic generation to and from the proposed site, impacts to current and future traffic levels of service,. and recommended improvement projects to mitigate these impacts to the county transportation system. If a required traffic study is not provided, .Dakota County Transportation Department will prepare one. Administrative costs will be billed to the TIF authority. 3) The public improvement road cost estimate furnished by the Dakota County Transportation Department will be included in the resolution passed by the County Board when possible. 4) Representatives of Dakota County will be available to meet with the TIF authority to review the proposed TIF plan. 5) The Treasurer-Auditor Department will prepare the request for Board action (RBA). 6) The Treasurer-Auditor Department will provide the TIF authority with a certified copy of the resolution. 7) The Dakota County Treasurer-Auditor will bill TIF authorities for administrative costs related to TIF Districts annually. PROCEDURES FOR CDA TIF DISTRICTS 1) The CDA contacts Dakota County Administration to determine timing for the public hearing. 2) The County Treasurer-Auditor receives the CDA TIF plan and distributes copies to the affected departments. 3) All plans that impact a county road must include a suitable traffic study analyzing and documenting traffic generation to and from the proposed site, impacts to current and future traffic levels of service, and recommended improvement projects to mitigate these impacts to the county transportation system. If a required traffic study is not provided, Dakota County Draft TIF Policy 5-23-02 MEMORANDUM TO: Robert Erickson, City Administrator CC: Dennis Feller, Finance Director FROM: David L. Olson, Community & Economic Development Director DATE: February 7, 2002 RE: Draft Dakota County Tax Increment Financing Policy I offer the following comments on the DRAFT Dakota County Tax Increment Financing Policy: • The Policy should address Renewal and Renovation Districts in addition to redevelopment districts. Renewal and Renovation Districts are similar to Redevelopment Districts except that the conditions to qualify are slightly different. The policy should address this type of TIF district. • I am not sure what the last bullet under Redevelopment Districts is intended to mean. I almost think. a word is missing and it should state "'Demonstrate that the land cannot be provided for development at a cost comparable to other land in the community." • The County's policy on tax forfeited properties should some how be referenced in this policy. Currently it is the County's policy to be paid the County's portion of back taxes if a tax forfeited parcel is sold by a City to a private developer. This could be a problem in certain redevelopment projects. • The Draft language in regards to Housing TIF districts is consistent with Minnesota Statutes and thus should be acceptable. • The language in the policy in regards to economic development TIF districts appears to be intentionally vague. It would lend itself to different interpretations as to what types of projects provide "substantial county-wide economic benefit." While this is certainly an improvement over the previous policy to oppose all economic development TIF districts, it could certainly result in conflicting determinations. • The last part of sentence number 1 in the last paragraph at the bottom of page one should read incur other "road costs" rather than "transportation system costs" to be consistent with Minnesota Statutes. • The language contained in subparagraph 2 under Procedures at the bottom of page three that requires submittal of a suitable traffic study, impacts to service levels, and recommended transportation improvements along with the proposed TIF Plan appears to go beyond the information required to be submitted under Minnesota Statutes.- My comment is not intended to suggest that this information should not be prepared but rather, to indicate that from a timing perspective, it may be problematic to have it completed in conjunction with the TIF Plan. The County's policy indicates this information is required "if appropriate" which is somewhat vague and it does not indicate who determines when it is appropriate. .Agenda Item MEMORANDUM TO: Economic Development Commission CC: Robert Erickson, City Administrator Ann Flad, Economic Development Coordinator Council Mer~nber Mark Bellows FROM: David L. Olson, Community & Economic Development Director DATE: June 19, 2002 RE: Dakota County Economic Development Partnership Survey The Dakota County. Economic Development Partnership (DCEDP) recently mailed a survey to approximately 100 community leaders in Dakota County including DCEDP members, past members, all cities, county representatives, chambers of commerce, school district superintendents and local newspapers. The response rate of the survey was 40%. The City recently received a DRAFT copy of the conclusions from the survey that is attached. As tre survey results and conclusions indicate the majority oft ?e community leaders that responded to the survey indicated that DCEDP should continue to operate as a county-wide agency that coordinates and promotes economic development in Dakota County. The greatest strength of the DCEDP is the involvement, suppo ~ and leadership from both the public and private sectors and the collaboration and communication that results according to the survey results. The most important program areas for the DCEDP to continue its focus based on the survey results include: • Business retention and development • Workforce development and training • Technology • Marketing Dakota County as a unified entity The DCEDP was- also identified as having a number of weaknesses or shortcomings in its mission and operations including: • The DCEDP's mission being somewhat off target by trying to be all things to all people. • The DCEDP has not effectively communicated its activities. • DCEDP leadership and management have not been as effective as they should be. A Strategic Planning Task Force with the help of a The Osgood Group was formed to initiate the survey and has been meeting regularly to review the survey results to determine what changes need to be implemented in the organization. I have been serving on this Task Force as one of two city .representatives. The other members of the Task Force represent -the County and private sector members. The Survey results were recently reviewed with Chambers of Commerce in Dakota County and Community Development. Directors. Based on the discussions of the DCEDP Task Force and meetings with the above organizations that have taken place to date, several areas for improvement of the DCEDP have been identified including: • Eliminate duplication with other entities • Increase visibility, credibility and leadership • The need for strong Executive Director leadership It is anticipated that the input from a number of other organizations including the Dakota County City Managers group and that this input along with input of the Task Force will result in a number or recommended changes to the organizational structure and focus of DCEDP. These recommendations will be considered hopefully acted on by the full membership in the next several months. r DAKOTA COUNTY ECONOMIC DEVELOPMENT PARTNERSHIP STRATEGIC PLANNING TASK FORCE DRAFT CONCLUSIONS FROM SURVEY A. Community leaders want the DCEDP to continue operating. They support the DCEDP as an organization that coordinates and promotes economic development in Dakota County. There is not a call for the DCEDP to stop operating. B. The greatest strength of the DCEDP is the involvement, support and leadership from both the public and private sectors -and the collaboration and communication that results. Networking and sharing of information are also very important. C. The DCEDP has not fully realized its mission, due to shortcomings in its mission and operations: • The DCEDP's mission is "somewhat off target." The DCEDP has tried to be "all things to all people," resulting in a lack of focus and some duplication of services with. other organizations. • The DCEDP has not communicated effectively about its work - in fact, 1/3 of community leaders are only "somewhat familiar" with. the DCEDP. Among DCEDP members, 1/4 with a board seat say they are only somewhat familiar with DCEDP and 1/2 without a board seat are only somewhat familiar with the organization. • The leadership and management of DCEDP has not been as efficient and effective as it should be. The board is too large and many members are not actively engaged. The former executive director did not successfully build good relationships with all partners. D. The most important steps the DCEDP can take are to (1) tighten the focus of its mission, (2) restructure its programs and leadership and (3) build a strong identity through aggressive communication and marketing. E. Community leaders are more likely to get involved. in the DCEDP when they serve on a committee, serve on the board or attend and/or help with an event or activity. Past members are not active in the DCEDP because they are not able to find the time necessary or were frustrated with the leadership or lack of leadership. F. The DCEDP has an opportunity to expand its membership through outreach and leadership, as non-members are not active in the DCEDP primarily because they have never been asked, are unaware of the DCEDP or don't understand the DCEDP. G. The top issues facing Dakota County that could impact the vitality of its economy are (1) workforce development, (2) affordable housing supply and (3) business retention and growth. H. The most important strategic focus areas for the DCEDP are (1) business retention and development, (2) workforce development and training, (3) technology and. (4) marketing Dakota County as a unified economic entity. THE OSGOOD GROUP j DAKOTA COUI`ITY COMMUNITY LEADER.. SURVEY RESULTS SUMMARY The Dakota County Economic Development Partnership sent a survey to community leaders in Dakota County, including DCEDP members, past members, all cities, county representatives, chambers of commerce, school district superintendents and"loca} newspapers. 41 responses were received, giving an overall response rate of 40 The respondents break. down as follows: Number of Res ondents Percenta a of Res ondents All res ondents 41 l00% Members with Board seat 17 41 Members w/out Board seat 12 29% Past Members 3 7% Non-Members 9 22% Of the 41 respondents,. 29 provided their names and affiliations. 12 surveys were anonymous. The breakdown of :.known respondents between sectors is as follows: Number of Res ondents Percenta a of Res ondents Private business 9 31 Coun 6 21 Ci 6 21% K-12 school 3 l0% .Non- rofit or anizatio? 3 10%_ Chamber of Commerce 2 7%0 Impressions of Dakota County Economy and Economic Development Efforts. Economic development efforts in Dakota County are generally considered well-coordinated and effective. But there is room for improvement, especially in the coordination of economic development efforts. Economic development efforts in bakota County are well-coordinated Agree - 55% Disagree - 45% Economic development efforts in Dakota County are effective. Agree - 63% Disagree - 38% The top issues facing Dakota County that could impact the vitality of its economy are: Workforce development 54% of respondents say this is one of the top two issues Affordable housing supply 38% of respondents say this is one of the top two issues Business retention /growth 29% of respondents say this is one of the top two issues The following are not considered a top issue that could impact the vitality of Dakota County's economy: Availability of land 12% of respondents say this is one of the. top two issues Availability of capital 2% of respondents say this is one of the top two issues Community infrastructure 2% of respondents say this is one of the top two issues THE OSGOOD GROUP 1 Familiarity with. the DCEDP and its Mission Community leaders are very or somewhat familiar with the DCEDP, although l/3 are only "somewhat familiar." Even members are not fully familiar with the DCEDP - in fact, half of members without a board seat report being only "somewhat familiar." Res ondent Ver Familiar Somewhat Familiar Not at all Familiar All res ondents 41 of 41) 59% 37% 5% Members with Board seat 76% 24% 0% (17 of 17) Members without Board 50% 50% 0% seat (12 of I2) Past Members (3 of 3) 67% 33% 0% Non-Members (9 of 9) 33% 44% 22% A slim majority of respondents feel the DCEDP's mission is "somewhat off target." The rest feel it is "right on target," except that one respondent feels it is "completely misguided." Respondent Right on Target Somewhat off CompletelyMisguided Tar et All res ondents (35 of41) 43% 54% 3% DCEDP Programs Business retention and development is the most important strategic focus for the DCEDP. Workforce development and training, technology and marketing Dakota County as a unified'economic entity also are very important. Global market facilitation and attraction. is not viewed as important by respondents (note: this may be partly due to the program being very new). a. Business retention and development. Focus: Improve the effective of business retention and development efforts county-wide. Programs: Networking, training and general advocacy. Res ondent Ve Im ortant Somewhat Im ortant Not Ver Im ortant All res ondents (39 of 41) 77°70 18% 5% b. Workforce development and training. Focus: Increase productivity, bring economic benefit to Dakota County and enrich local residents' lives by connecting employment opportunities that meet or exceed. their career opportunities. Programs: Job fairs, conferences, employer training at community college. All res ondents (38 of41) 613% 24% 8% c. Global market facilitation and attraction. Focus: Gain market access to Chinese industry sectors that hold the most promise for Dakota County exports and investment. Programs: Expand Sister City, co-sponsor international trade seminar. All res ondents (38 of41) 13% 66% 21% d. Marketing Dakota County as a unified economic entity. Focus: Promote communication, coordination and cooperation among those involved in economic development. Programs: Annual reports, newsletters, web site, media relations.. All res ondents (39 of 41) 49% 41% 10% THE OSGOOD GROUP 2 e. Technology. Focus: Establish Dakota County as a technology leader and serve as a magnet to spur ongoing economic growth. Programs: Host business seminars, create forum and website for information exchange, drive development of tech infrastructure. All res ondents (38 of 41) 50% 39% 11 Involvement in DCEDP Programs Members became involved in I)CEDP'throughc Committee /Board member - 91% Attended event or activity - 61% Helped :with event or activity - S 7% Attended social event - 52% Gained economic benefit - 13% Past members are not active in the DCEDP because: Not able to find the time necessary 67% Frustrated with the leadership or tack of leadership 33%. Non-members are not active in the-DCEDP because: Never been asked - 40% Unaware of the DCEDP- 40% Don't understand the DCEDP - 40% Don't agree with the focus - 20% Other ("politics") - 20% Respondents feel the most beneficial DCEDP programs and events are networking opportunities, Dakota County Capital, job fairs, bankers seminar and technology seminar. Pro rams and Events Beneficial Not Beneficial Networking Opportunities 65% 9% Dakota County. Capital 62% 3% Job Fairs 59% 12% Bankers Seminar 59% 12% Technology Seminar 53% i 8% Business Visitations 41% 18% Annual Meeting 38% 18% Employment Training Seminar 29% 29% Hastings Enterprise Facilitation 32% 24% THE OSGOOD GROUP 3 Streneths. Weaknesses and Sueeestions The strengths of the DCEDP are: • Public and private support and leadership. Partnership approach. • Programs Bankers Seminar, Technology, Job Eairs. • Single source of information in Dakota County for economic development. issues and oppartunities. • Cooperation, collaboration, unification of communities, business sector. . • The volunteers and leaders of DCEDP. • Communication on county-wide issues. Opportunities: for communication/coordination. • Networking among public/private agencies and economic development professionals.. Sharing of information. The DCEDP's weaknesses /areas for improvement are: • Tighten the focus, build a strong identity. Improve coordination with other economic development entities. Scope is too broad. Eliminate duplication with other entities. • There is not a universal effort in County promoting. economic development. Be a one-stop clearinghouse for E.D. in Dakota County. Voice for ED in county. Coordination role. • Communicate and market more effectively to both internal and external audiences. Increase visibility, credibility and leadership. • Secure adequate resources for DCEDP. Increase business participation. • Re-structure. the DCEDP board be more efficient; get regular turnover on board and strengthen political support. • Strengthen staffing and management of DCEDP. Need strong executive director leadership who will "positively" link with all the chambers, cities and economic development leaders to assist in the achieving of their goals. DCEDP Organizational Structure and Membership Dues The DCEDP should be restructured to become more efficient and effective -smaller board of directors and stronger executive director leadership. ..The current apportioning of the DCEDP's annual budget (2/3 public sector funding and 1/3 private sector funding) is appropriate: Do you feel the current contributions to the Partnership are distributed appropriately between the public and ....private sectors? Yes - 61% No --39% Respondents who feel contributions should be re-apportioned generally suggest increasing private sector contributions. .The DCEDP should continue operating, either by merging with another organization (59%) or remaining independent (38%). One respondent feels the DCEDP should cease operations and dissolve. THE OSGOOD GROUP 4 It~r~ Tic. / MEMORANDUM TO: Economic Development Commission CC: Robert Erickson, City Administrator Ann Flad, Economic Development Coordinator y~~~ FROM: David L. Olson, Community & Economic Development Director~~ DATE: June 20, 2002 RE: June Director's Report I-35 -CSAH 50 Moratorium City staff has recently approved a site plan and concept plan for the renovation of the Old Tom Thumb building located at the corner of CSAH 50 and 175th Street owned by Bob James. Approval of the plan will result in the removal of afree-standing shed behind the building, elimination of a pylon sign base located within an easement and the removal of a trash enclosure located within an ease~~~ent. T riffs property is located within the i'vioratorium Area however the plan with several minor revisions 6s permitted as it utilizes the existing building footprint and does not intensify the use so as to require a conditional use permit or variance. Mr. James was very positive with the outco~~.e of tills review proce55 and will be able to pursue other improvements to property once the moratorium is lifted including a possible drive-thru window, improvements to the outdoor seating area and improvements to his parking lot design including landscaped medians. The proposed uses that would occupy the remodeled commercial center are proposed to include a coffee shop, sandwich shop, and a dry cleaner. SRF Consulting Group continues to meet with property and/or business owners in the Moratorium area. This input will be used by SRF to come up with a preliminary design layout, traffic forecast and traffic operations evaluation for the I-35 -CSAH 50 area. I-35 -CSAH 60 Improvements The Dakota County Board awarded a bid to Valley Paving on June 4, 2002 for the first phase of the CSAH 60. The Bid award amount was approximately $2 million below the engineers estimate. The first phase project will include construction of the south ramps, realignment of the frontage road and the upgrading of 185th Street east of I-35. I-35 -CSAH 70 Interchange Design The Project Management Team for this project has met twice with their next meeting scheduled for July 11, 2002. The Team is comprised of representatives of MnDOT, Dakota County, the City of Lakeville along with the consulting firms of TKDA and SRF to complete the design of these required interchange improvements at CSAH 70. CrossRoads Development The City Council approved the proposed sketch plan for the CrossRoads Development at their June 17, 2002 meeting. This is a mixed-use development proposed at the southeast corner of Dodd Boulevard Cedar Avenue on approximate 230 acres. OPUS Corporation is developer of the commercial portion of this project that contains approximately 186,000 square feet and will have a Cub Foods store as its anchor tenant. Approval of this sketch plan was contingent on reaching agreement with the County on an innovative. approach to the upgrade of Dodd Boulevard. The County has authorized the execution of an..agreement whereby the City would be authorized to oversee the upgrade of Dodd to a-four-lane divided roadway and also to be the agency to coordinate the installation of traffic signals along Cedar and Dodd when traffic warrants are met. All of the required transportation. improvements will be funded by OPUS and DR Horton, the residential developer of the project. Fairfield Property Owners Association Meeting The annual meeting of the Fairfield Property Owners Association will be held on Tuesday, June 25th at noon at New Morning Windows. Airlake Airport A ~ ~ Meeting of the Airlake Airport Advisor~r Commission has fina{ly been scheduled far Thursday, June 27, 2002 at 4:00 in the Flyteline Services building at the airport. f'1 I. t„ a. 'a.. 1 LJQnQIQ CJ l1I 1t~ a~alLCll Dakota County Capital recently approved a loan in the amount of $50,000 to Tangen Industrial Services located in Airlake Industrial Park. Dakota County Capital LLC is a Gap and Equity Financing fund that is overseen by the Dakota County Economic Development Partnership staff and has a number of banks in the County participating in the program. The loan made to Tangen was for machinery and equipment and was processed by Anchor Bank in Lakeville. A copy of the brochure explaining the Dakota County Capital fund is attached. Legislative Summary Attached is Final Legislative Report prepared by Kathy Hahne lobbyist for the Economic Development Association of Minnesota of which the City is a member. In terms of economic development programs, the Governor's veto of all funding for State redevelopment programs is significant. 1n addition, the legislature eliminated funding for the TIF Grant program that was established to assist cities with TIF Districts that have shortfalls caused by property tax reforms. As the report indicates, unless there is a significant improvement in the state economy, there will be dramatic spending cuts or tax increases required during the 2003 Legislative Session. Sale of Fireworks Attached please find a memo from Fire Chief Danny Barth regarding the sale of fireworks in the City as a result in the recent change in State Statutes. J ~ ~ ~ , ~ ' - s- U rr Z ~ Q `a-- U ~ D U ~ ~ V • - ~ i_ ~.L. ~..U 0 h C v H ~ ~ Y ~ W C ~ v V C 0 ~ O ~ ~ p U > ~ w O ~ u v c~• ~ o v ; ; Y fl. C Y tU ~ .G a ~ o i% - N ~ ~ ~ ~ C ~ ~ ~ C ~ ~ U ~ v ~ C h ~ v a o o~= v o 3 E aria 3v 3 3ti~ 3~ 3 N ~ ~ v. ~ ~ o o N Z m ~ ~ ~ ~ ~ ~ ~ ~ p m Z ~ z w ~ ~ ~ O ~ ~ ~L ~ _ LL W ~ ~ O~ pp O p. Q E~ ~ ~ m ~ Z ~ ~ H y ~ cn ~ N ~ ~ m a y ~ a m 6 0 3 ~ a w z o N a ~ ~ c = ~ ~ ~ ~ U Z ~ ~ o O ~ ~ ~ .^p ~p 3 N 0 ~ ~ O ~ ~ Y 'O w ~ ~ ~ Z w O O~ N v~ ~ p I~ ~ 3 c ~ o Quo NMN~ a ~a ~ c~o° ~ a a ~ O a > ~ ~.v U~ ~a N~ ~ c~ ~ ~ O ~ w ~ ~ ti Q C ~ i N i C C~- ~ c`7 y Q w 3 _i ~ j ~ ~ o w U EDAM -EDAM 2002 LEGISLATIVE REPORT - OS-02 Page 1 of 3 FC'~(1Q171)~' D~v~fOptrlerr~ ,QSS~CtC7tl~7fl pf 11~1l7t7~'SOC'Q ~ i F ~ ~ ~ EDAM 2002 LEGISLATNE REPORT _ ~ Kathryn S. Hahne i Faegre & Benson - . - . - - ~ k SESSION SUMMARY _1 _ j The 2002 Minnesota Legislature faced a severe budget deficit; the first deficit in the 3 state since 1991. The DFL controlled Senate, the Republican controlled House and the - Independence Party Governor began the session working hard on a budget solution for. - m the projected $1.95 billion deficit in the 2002-03 biennium, but tri-partisan cooperation quickly vanished. No sooner had the Legislature passed a budget fix and. overrode the Governor's veto, than a new forecast showed an additional $440 million deficit in 2002- 03. The second half of the 2002 Legislative Session was focused on the "Phase II" budget fix. The Legislature had hoped to adjourn in early April. They finally adjourned on May 20, 2002, the constitutionally prescribed day of adjournment. Ultimately, there were no tax increases, no big spending cuts, no transportation bill. The Governor, declaring himself the "Samurai governor" chopped out more than a third of the Legislature's nearly $1 billion bonding bill with line-item vetoes, including several of EDAM supported DTED and Met Council programs. REDEVELOPMENT EDAM supported funding of the Redevelopment Fund at a minimum of $20 million. EDAM also supported adding additional flexibility to the current law criteria for the Redevelopment fund that would maximize the return on investment to the State of Minnesota. The bonding bill, passed with strong support in both the House and Senate, appropriated $4 million, including $l million for Hennepin Paper cleanup in Little Falls, to the Redevelopment Fund for projects in outstate Minnesota. The Legislature also approved $12 million for in new DTED program -the Greater Minnesota Business Development Grant Program. Additionally, Met Council was appropriated $9 million to the Livable Communities Program for a new Redevelopment Program. The Governor vetoed all of the funding for redevelopment needs. In addition the Governor vetoed $2$.5 of the Wastewater Infrastructure Grants. TIF Grant Dollars -going, going, gone. In order to prevent existing TIF districts from defaulting on existing obligations (generally those districts that have requested certification by 8/1/01), the 2001 tax bill provided $91 million for a TIF grant fund in 2002, and an additional $38 million per yearthereafter. Unfortunately, in order to help balance the 2002-2003 projected budget deficit,. the 2002 legislature eliminated all of this new funding for the state TIF grant program. The 2002 tax bill provided some additional flexibility for a municipality or authority with existing TIF districts that are facing a debt service shortfall due to property tax reform. The 2002 legislation allows an authority with a preexisting district, where increments from the district are insufficient to pay those preexisting obligations due to properly tax reform, to elect that the original local tax rate that was frozen at the time of the http://www.edam.org/leg_report_0502.cfm 06/20/2002 EDAM -EDAM 2002 LEGISLATIVE REPORT - OS-02 Page 2 of 3 creation of the district can be unfrozen and allowed to float upwards. The authority may also elect to change the computation of the fiscal disparities contribution from what was originally elected at the creation of the district. The 2002 tax bill allows an authority to take these actions prior to any pooling among TIF districts. The 2002 legislature also responded to several specific requests for. special law changes for specific TIF districts. TRANSPORATION EDAM was a part of the newly formed Minnesota Transportation Coalition. Through this coalition EDAM worked for funding for a package of $2.27 billion in new transportation investments through a combination of bonding, Motor Vehicle Sales Tax transfer, a gas tax increase and improved efficiency in project delivery. In the end, the 2002 Legislature adjourned without a transportation compromise. Ultimately the House and Senate disagreed on the size of a gas tax increase and whether there would be any additional spending for transit. Many House Republicans refused to vote for a gas tax increase if the package. included spending money on transit. The rural and urban interests also were unable to agree to a compromise proposal. The lack of additional funding for transportation will certainly be a topic of discussion during the fall election campaigns. STATE DEPARTMENT REORGANIZATION: ECONOMIC AND WORKFORCE DEVELOPMENT EDAM supported coordinating economic development strategies for the incumbent and emerging workers through the reorganization of workforce programs into the Department of Trade and Economic Development. EDAM also supported the continuation of, and increased funding for, the State Dislocated Worker program by maintaining the Workforce Development Fund, increasing the Workforce Development Fee, and using the fund only for employment and training activities. The Legislature delayed the merger of the department of Economic Security and DTED for one year as part of the Phase I budget reconciliation bill. The Workforce Development Fund was appropriated approximately $53 to $58.4 million for fiscal year 2003, depending upon whether or not some of the funds had been obligated to other programs. The Workforce Development Fee remained at 0.07%. CONCLUSION The 2002 Legislature used most of the state's existing reserves and various accounting shifts to solve the nearly $2.5 billion deficit for this current biennium. Unless the economy recovers dramatically, the 2003 legislature is likely to face a significant projected deficit that will require dramatic spending cuts or tax increases. The 2003 legislative session will also take up transportation funding again. As a result of reapportionment and an unusual number of retiring legislators, the 2002 election will result in significant turnover in the Legislature. With every legislator and the Governor running for election, 2002 is a critical election year for everyone. The fate of EDAM's important issues will be decided in great part by who is elected in 2002. http://www.edam.org/leg_report_0502.cfm 06/20/2002 To: Mayor Johnson and City Council members CC: Robert Erickson, City Admi~jator From: Dann} Earth, Firc Chicf Date:_ 6/20/2002 Re: Fireworks. License Status VVtto has a License to Sell Fire Works As of today we have issued six licenses to sell fireworks from retail establishments within. the City; Super America (175`i' Street), Kwik Trip (Glacier Way), Holiday Store (Kenyon Ave) and Oasis Market (Dodd Blvd and 210`h Street). e mo ..fier 'cu a~~ros~,,.. r - _ _d _ } Yt. C,.angc; iv it.e vru.i~an.,c Svc ~e~cevc' a Cali. fTf; r;7 :,(.j%U er iJ~iib . TeOU~St111° tTlfnrmaYtpn T1lPV }iarj alrPar~v ctartaij cPllinR fi,rP n Irc an~ . nteu t~, 1 .;+1, +Lto new license requirement. Fire Inspector Brian Carstensen met with the owner and manager and after. discussing issues of storage; display and compliance with selling to individuals over 18 the owner felt 'the potential was not worth his estimated X200 profit and immediately boxed up the remaining product and ilad it removed from the store. "rte contacted me the foiiowing day and indicated he was willing to pay the $50.00 license fee since he had in fact been selling the product- I told him that since hehad called us on Tuesday morning and subsequently removed the product from the store that payment of a license fee was not necessary: He was very complementary ofour efforts a.nd Brian's actions. Later in the week we received an application from the Holiday store (former Mega Stop). Brianonce again got this call and completed the onsite inspection. When the manager was informed that under State Fire code the building would need to be posted no-smoking they indicated the loss of truck .driver traffic could not be made up by selling fireworks, they withdrew their application. We havealso started to field inquires by people wanting to sell (reworks during Pan-O-Frog along the streetcurbs and under tents. According to Ctty Attorney Koger Kuntson, they would be in violation of the current coning ordinance requiring that fireworks be sold from permanent retail facilities: A caller today. said they would be looking for a store to rent. Lastly, a nelvs story last night on Channel four did not paint a favorable light on four Metro area ,cities when they showed that they were charging from $ l ;100 to $1,300 for a license to sell fireworks. I think you made a very smart choice in setting our fee at $50.60.