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01-10-2023 EDC Agenda PacketA.5:30 P.M. - CALL TO ORDER B.APPROVAL OF AGENDA Commissioners may add or delete items at this time. C.APPROVAL OF MINUTES C.1 Approve Economic Development Commission Minutes of December 14, 2022 D.VISITOR PRESENTATIONS D.1 DEED Presentation: Chanhassen Workforce Overview E.DISCUSSION / GENERAL BUSINESS ITEMS F.DIRECTOR'S REPORT G.ADJOURNMENT AGENDA CHANHASSEN ECONOMIC DEVELOPMENT COMMISSION TUESDAY, JANUARY 10, 2023 CITY COUNCIL CHAMBERS, 7700 MARKET BOULEVARD 1 Economic Development Commission Item January 10, 2023 Subject Approve Economic Development Commission Minutes of December 14, 2022 Section APPROVAL OF MINUTES Item No: C.1 Prepared By Amy Weidman, Admin Support Specialist File No: SUMMARY BACKGROUND DISCUSSION RECOMMENDATION Staff recommends that the Economic Development Commission approve the December 14, 2022 Commission minutes. ATTACHMENTS Economic Development Commission meeting minutes dated December 14, 2022 2 CHANHASSEN ECONOMIC DEVELOPMENT COMMISSION REGULAR MEETING DECEMBER 14, 2022 Acting Chair Duke Zurek called the meeting to order at 5:34 p.m. MEMBERS PRESENT: Commissioners Duke Zurek, Chris Freeman, and Stacy Goff. MEMBERS ABSENT: Chair Eric Anderson. STAFF PRESENT: Samantha DiMaggio, Economic Development Manager; MacKenzie Young-Walters, Associate City Planner; Bob Generous, Senior Planner. PUBLIC PRESENT: None. Member Goff moved; Member Freeman seconded to approve the agenda. All voted in favor and the motion carried unanimously with a vote of 3 to 0. APPROVAL OF MINUTES: APPROVE ECONOMIC DEVELOPMENT COMMISSION MINUTES DATED OCTOBER 11, 2022 Member Freeman moved, Member Goff seconded to approve the Minutes of the Economic Development Commission meeting dated October 11, 2022, as presented. All voted in favor and the motion carried unanimously with a vote of 3 to 0. DISCUSSION/GENERAL BUSINESS ITEMS: 1. DISCUSS PROPOSED SIGN CODE UPDATE Associate City Planner Young-Walters gave history noting the Code was updated in the mid- 1990s. Since that time there have been changes in businesses and business climate with retailers as well as a Supreme Court case which guided municipalities’ ability to regulate signage. High- level changes include making the Code comply with the court decision, standardizing treatment of temporary signage, and reevaluating some historic problems. He shared examples on screen of residential and business signage. The Commissioners discussed the reasons and issues for a sign ordinance with Mr. Young- Walters including safety, aesthetics, standards, cohesion, and ability of businesses to advertise and be successful. They then discussed the history of the Supreme Court case, signage that may be considered offensive, sign setbacks, and feather signs. 3 Economic Development Commission – December 14, 2022 2 Mr. Young-Walters showed examples of signage on screen and walked the Commission through current business signage. The Commissioners discussed making sure businesses receive adequate signage allowances for advertising, regulation, flat signs versus the City’s ½ inch standard, and non-conforming signs within the City. Mr. Young-Walters spoke about the 30% logo rule giving examples of U.S. Bank, Lund’s, and Chanhassen Brewing, the careful math required to hit the 30% requirement, and asked what the City is gaining by enforcing a strict 30%. He would like to loosen that standard a bit and noted the Planning Commission liked the idea of 50%. The Commissioners agreed with the 50% and with the ½ inch raised letter standard. They also agreed with the proposed panel and awning sign standards. The Commissioners discussed painted signs, artwork versus logos, upkeep, and regulating maintenance on awnings or painted signs. Mr. Young-Walters shared about requiring permits for signage to be able to monitor so it meets Code. Staff is not looking to be punitive but wants to make sure signage is where it is supposed to be. 2. BUSINESS RETENTION AND EXPANSION (BR&E) PROGRAM IMPLEMENTATION Economic Development Manager DiMaggio shared this is an easy and low-cost program with the goal of getting to know businesses within the city and whether there are things the City can help with. She has a list of Chanhassen businesses and highlighted manufacturers, then sent a letter introducing herself and talking about the program. She noted it will be confidential and she can share about a business without giving the name of the business. Ms. DiMaggio stated the hope is that she will receive a survey from the businesses, she will visit the business, then put that information into the new Customer Relationship Management (CRM). She shared about succession planning training, the knowledge that will come from knowing more about businesses within the City and being able to bring that information to the City Council to help businesses in areas where other funds or aid may be missing. Another benefit of the program is building relationships with the businesses and helping businesses understand what programs may be available for them. The Commissioners discussed digitizing the survey, getting contact information and email addresses for business owners, and the importance of building the CRM. 4 Economic Development Commission – December 14, 2022 3 NEW BUSINESS: None. ADMINISTRATIVE PRESENTATION: None. CORRESPONDENCE DISCUSSION: None. ADJOURNMENT: Member Freeman moved; Member Goff seconded to adjourn the meeting. All voted in favor and the motion carried unanimously with a vote of 3 to 0. The Economic Development Commission meeting was adjourned the meeting at 7:12 p.m. Submitted by Samantha DiMaggio Economic Development Manager Prepared by Amy Weidman Administrative Support Specialist 5 Economic Development Commission Item January 10, 2023 Subject DEED Presentation: Chanhassen Workforce Overview Section VISITOR PRESENTATIONS Item No: D.1 Prepared By Sam DiMaggio, Economic Development Manager File No: SUMMARY BACKGROUND Neal Young, Director of Economic Analysis at the Minnesota Department of Employment and Economic Development, will be presenting an overview of the workforce in the City of Chanhassen. Mr. Young has previously served as an economic analyst at DEED. In addition to DEED, he has also worked as an analyst for the U.S. Department of Agriculture, U.S. Department of Commerce, and the Iowa Department of Revenue. He has a BA in Economics from Drake University in Des Moines, Iowa and an MA in Public Affairs from the University of Minnesota’s Humphrey School. DISCUSSION RECOMMENDATION As this is a presentation, no formal action is required. ATTACHMENTS Chanhassen Jan 23 6 Workforce Overview of Chanhassen, MN Neal Young, Economic Analysis Director mn.gov/deed 7 Demographics: Age Fact Chanhassen Minnesota United States Population Estimates, July 1 2021, (V2021)26,037 5,707,390 331,893,745 Persons under 5 years, percent 6.0%5.9%5.7% Persons under 18 years, percent 26.4%23.1%22.2% Persons 65 years and over, percent 12.2%16.7%16.8% Female persons, percent 51.0%49.9%50.5% mn.gov/deed Source: Quickfacts, U.S. Census Bureau. 8 Demographics: Race mn.gov/deed Fact Chanhassen Minnesota United States White alone, percent 87.3%83.0%75.8% Black or African American alone, percent 1.7%7.4%13.6% American Indian and Alaska Native alone, percent 0.1%1.4%1.3% Asian alone, percent 6.1%5.4%6.1% Native Hawaiian and Other Pacific Islander alone, percent 0.0%0.1%0.3% Two or More Races, percent 4.3%2.8%2.9% Hispanic or Latino, percent 4.2%5.8%18.9% White alone, not Hispanic or Latino, percent 85.0%78.1%59.3% Foreign born persons, percent, 2016-2020 7.5%8.4%13.5% Language other than English spoken at home, percent of persons age 5 years+, 2016-2020 9.5%11.9%21.5% Source: Quickfacts, U.S. Census Bureau. 9 Demographics: Households and Housing mn.gov/deed Fact Chanhassen Minnesota United States Households, 2016-2020 9,396 2,207,988 122,354,219 Persons per household, 2016-2020 2.76 2.48 2.6 Living in same house 1 year ago, percent of persons age 1 year+, 2016-2020 89.8%86.3%86.2% Owner-occupied housing unit rate, 2016-2020 87.9%71.9%64.4% Median value of owner-occupied housing units, 2016- 2020 $400,300 $235,700 $229,800 Median selected monthly owner costs -with a mortgage, 2016-2020 $2,254 $1,606 $1,621 Median selected monthly owner costs -without a mortgage, 2016-2020 $709 $548 $509 Median gross rent, 2016-2020 $1,469 $1,010 $1,096 Source: Quickfacts, U.S. Census Bureau. 10 Demographics: Other Indicators mn.gov/deed Fact Chanhassen Minnesota United States Households with a computer, percent, 2016-2020 98.6%92.7%91.9% Households with a broadband Internet subscription, percent, 2016-2020 94.9%87.0%85.2% High school graduate or higher, percent of persons age 25 years+, 2016-2020 98.6%93.4%88.5% Bachelor's degree or higher, percent of persons age 25 years+, 2016-2020 63.4%36.8%32.9% With a disability, under age 65 years, percent, 2016- 2020 2.8%7.4%8.7% Persons without health insurance, under age 65 years, percent 2.5%5.3%9.8% Median household income (in 2020 dollars), 2016-2020 $124,184 $73,382 $64,994 Persons in poverty, percent 2.9%9.3%11.6% Source: Quickfacts, U.S. Census Bureau. 11 Labor Market Overview •Chanhassen •Carver County mn.gov/deed Source: LAUS, MN DEED, November 2022 12 Where Do Chanhassen Residents Work? mn.gov/deed Source: OnTheMap, U.S. Census Bureau 13 Who Works In Chanhassen? mn.gov/deed Source: OnTheMap, U.S. Census Bureau 14 Net Inflow of Workers mn.gov/deed Source: OnTheMap, U.S. Census Bureau 15 Another View of Net Labor Flow mn.gov/deed Source: EMSI 16 A View By Industry mn.gov/deed Source: Q2 2022, QCEW, MN DEED Industry Employment Share Total, All Industries 15,130 100.0% Natural Resources and Mining 12 0.1% Construction 843 5.6% Manufacturing 4,180 27.6% Trade, Transportation and Utilities 2,769 18.3% Information 107 0.7% Financial Activities 414 2.7% Professional and Business Services 2,130 14.1% Education and Health Services 2,190 14.5% Leisure and Hospitality 1,865 12.3% Other Services 400 2.6% Public Administration 217 1.4% 17 Top 6 Industries by Employment mn.gov/deed Source: Q2 2022, QCEW, MN DEED Computer and Electronic Product Manufacturing 2,297 Educational Services 1,020 Food Services and Drinking Places 1,011 Merchant Wholesalers, Durable Goods 997 Machinery Manufacturing 922 Professional, Scientific, and Technical Services 887 18 Considerations •Industry quality (Primary vs Secondary Industries) •Primary industries are those that are selling to customers around the state, country and world •Secondary industries are those industries that primarily cater to local demand (more residents, more demand) •Manufacturing is a great prospect, generally no matter what •$92k average vs $76k for all industries in 2021; wages rising in 2022 •Wholesale/retail trade/personal services: do you want to spend money recruiting industries that follow demand •May be necessary to fill in critical gaps that haven’t been filled by the market •Healthcare: unless you are Mayo or UMN, it follows demand •Telework •Some targets for economic developers are also industries with higher share of telework •Is that an impediment or a strategy? mn.gov/deed 19 Thank You! Neal Young neal.young@state.mn.us 20