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Agenda and PacketAGENDA  CHANHASSEN ECONOMIC DEVELOPMENT COMMISSION TUESDAY, JULY 14, 2020, 7:00 PM CITY COUNCIL CHAMBERS, 7700 MARKET BOULEVARD A.WORK SESSION B.CALL TO ORDER C.APPROVAL OF MINUTES 1.Approval of Economic Development Commission Minutes dated June 9, 2020 D.OLD BUSINESS 1.Follow Up Discussion of EDC Goal ­ Consideration of Creation of Business Subsidy Program E.NEW BUSINESS 1.Discussion of Gathering Local Business Contact Information 2.Discussion of CARES Act Funding Grants for Local Small Businesses 3.Discussion of Business/Community Survey of Local Businesses F.CORRESPONDENCE DISCUSSION G.ADJOURNMENT ECONOMIC DEVELOPMENT COMMISSION STAFF REPORT Tuesday, July 14, 2020 Subject Approval of Economic Development Commission Minutes dated June 9, 2020 Section APPROVAL OF MINUTES Item No: C.1. Prepared By Nann Opheim, City Recorder File No:  SUMMARY The Economic Development Commission approves the minutes from its June 9, 2020 meeting. ATTACHMENTS: Economic Development Commission Summary Minutes dated June 9, 2020 CHANHASSEN ECONOMIC DEVELOPMENT COMMISSION REGULAR MEETING JUNE 9, 2020 Chairman Sanford called the meeting to order at 7:00 p.m. MEMBERS PRESENT: Jim Sanford, Kathleen Donovan, James Ebeling, Steve Stamy and Adam Schaefer STAFF PRESENT: Greg Sticha, Finance Director; and Jake Foster, Assistant City Manager APPROVAL OF MINUTES: Donovan moved, Ebeling seconded to approve the Minutes of the Economic Development Commission meeting dated May 12, 2020 as presented. All voted in favor and the motion carried unanimously with a vote of 5 to 0. FOLLOW UP DISCUSSION OF EDC GOAL: CONSIDERATION OF CREATION OF BUSINESS SUBSIDY PROGRAM. Greg Sticha reviewed highlights of a power point presentation by Ehlers and Associates at the previous meeting before asking for questions or comments from commission members. Adam Schaefer asked for clarification of the current business subsidy policy versus program. He suggested a forbearance bullet point could be beneficial. Chairman Sanford asked for clarification of what the City charges businesses currently. Adam Schaefer discussed establishing something to help historic entities, establish long term care opportunities in the city, and possibilities to enhance marketing the City of Chanhassen in the future. Chairman Sanford asked about the status of the proposed regional lifestyle center, Avienda and revitalization of the central business district with the use of tools associated with business subsidy programs. James Ebeling discussed enhancing entertainment type businesses in the city i.e. Top Golf type, community centers, and curling center with the use of micro loan programs, and ways to encourage development of affordable housing available for employees in these type of businesses. Stephen Stamy asked for clarification on the status of the current business climate due to the pandemic, how the City can enhance recruiting businesses to locate in Chanhassen, clarification of the use of TIF Districts, and the possibility of retail development in southern Chanhassen after completion of Highway 101. Kathleen Donovan agreed with what has been suggested previously regarding affordable housing, recruiting businesses to relocate in Chanhassen, and the possibility of the City providing vouchers to residential and small business retail properties to frequent local businesses. Greg Sticha summarized what he heard from commission members regarding affordable housing, incentivize more entertainment type businesses in Chanhassen, some type of small business relief mechanism, and attracting professional office businesses to locate in Chanhassen with the use of some type of small business subsidy programs. Stephen Stamy asked who markets the City of Chanhassen currently. Greg Sticha explained that there is no one staff person in charge of marketing. Economic Development Commission – June 9, 2020 2 Chairman Sanford discussed the use of a Chamber of Commerce or inviting someone from Buy Chanhassen to a future commission meeting. Greg Sticha asked for further clarification on how commission members want to incentivize entertainment and new small businesses to locate in Chanhassen and what tools and criteria will be used. Schaefer moved, Donovan seconded to adjourn the meeting. All voted in favor and the motion carried unanimously with a vote of 5 to 0. The Economic Development Commission meeting was adjourned the meeting at 8:25 p.m. Submitted by Greg Sticha Finance Director Prepared by Nann Opheim ECONOMIC DEVELOPMENT COMMISSION STAFF REPORT Tuesday, July 14, 2020 Subject Follow Up Discussion of EDC Goal ­ Consideration of Creation of Business Subsidy Program Section OLD BUSINESS Item No: D.1. Prepared By Greg Sticha, Finance Director File No:  BACKGROUND At our May12th EDC meeting we had Jessica from Ehler's and Associates review business subsidy policies, programs, and what were some examples of business subsidy programs from other communities.  This evening we will be discussing thoughts and ideas of each EDC member on what potential business subsidy programs they would like to consider for development and eventual presentation to the City Council.  At the June 9th meeting the EDC generated ideas for potential business subsidy programs.  A list of three subsidy idea types was created and added to the attached goals document.  This evening we will be putting together a few more specifics behind each of the ideas to share with the city council at the August 10th joint meeting. I am also including links to two emergency assistance programs for existing businesses to review as part of our discussion this evening. https://www.thinkshoreview.com/small­business­emergency­assistance­program https://www.minnetonkamn.gov/business/small­business­emergency­loan ATTACHMENTS: Revised Goal Sheet EDC Goals Primary 2020 Goals 1. Create a Business Subsidy program using either a levy, abatement, TIF or other financing mechanism to help offset costs of barrier of entry. 2. Look for ways the EDC can encourage local businesses to communicate more frequently and effectively with other local businesses, city staff, elected officials, commissions, Buy Chanhassen and the SW Chamber. 3. Have staff prepare a feedback survey for developers and potential business owners at the various points of contact with city staff. This would include the planning department after a developer has completed a development process and the building department after a business has gone through an improvement project. 4. Improve walkability/connectivity of the downtown, in particular over highway 5. 5. Have the EDC along with Buy Chanhassen/SW Chamber support the creation of a local job fair in the City. This could include part time, seasonal and other full time opportunities for employment in the City of Chanhassen. The event could be held at a City gathering place. Other Future Goals • Understanding of how to attempt diversification of local businesses in terms of size and types of business. • Look to attain more entertainment retail (ex. Top Golf) • Define vision of business community in the City of Chanhassen. Do we want our business community to look more like Minnetonka/Eden Prairie or Hopkins. • Be more proactive rather than reactive in attracting local businesses while still following the comprehensive plan. • Engage residents and various city groups to help them understand impact of goals and growth in the city. • Facilitate economic growth of existing businesses both with employment and improving the quality of life for our residents. • Use advertising/marketing to draw residents from other cities to Chanhassen businesses. • Recruit successful businesses from other communities to Chanhassen. • Create business cards for the members of the EDC in order for them to identify themselves and share their contact information with local businesses. • Increase/Improve internet connectivity for local business community. • Improve city competitiveness by making sure it is move in ready for all forms of business. • Engage with Buy Chanhassen and Southwest Chamber of Commerce to bring more light to Chanhassen businesses. • Increase awareness of local public transportation-SW Metro • Employment opportunities • Attempt to assist local businesses with the creation of a Health Insurance Consortium in order for local businesses to be more attractive for employment opportunities. Considerations for City Council 1. The EDC would be strongly supportive of the building of a public facility that encompasses large gathering spaces in a multi-use facility that brings increased traffic and visitors to the City of Chanhassen. The facility could host local business meetings, small conferences, and resident gathering events. 2. The EDC strongly supports a local lodging tax for the creation and financial support of a Visitors/Convention Bureau. 3. The EDC believes there is a high need for affordable housing to assist our local businesses. The lack of affordable housing makes it difficult for small businesses to draw on local employees for its operations. The EDC strongly encourages the City Council to consider offering assistance for an affordable housing TIF district project. Potential Business Subsidy Program Areas 1. A subsidy program to incentivize new Entertainment Businesses within the City of Chanhassen. The subsidy could be a low interest micro loan program funded in part by an HRA/EDA levy. 2. A current/existing business subsidy program for small local businesses that need assistance during difficult economic downturns in varying business sectors. The program could be in the form of a low interest micro loan or a small grant program for certain qualifying expenses. 3. In order to encourage new small businesses to move to Chanhassen or to start a new business in Chanhassen the creation of a business subsidy program. The program could be a low interest micro loan program, a Waiver of Utility Connection fees for new SAC units, a small business incubator lease assistance program or a Jobs for Fees program similar to one created by the City of Jordan. Most of these would require a HRA/EDA levy or a waiver of a small amount of Utility Connection revenues. ECONOMIC DEVELOPMENT COMMISSION STAFF REPORT Tuesday, July 14, 2020 Subject Discussion of Gathering Local Business Contact Information Section NEW BUSINESS Item No: E.1. Prepared By Greg Sticha, Finance Director File No:  BACKGROUND As part of our discussion last month and as one of your goals for 2020, the EDC would like to improve communication between local businesses and the city.  It has been difficult to send out mass communications via email to local businesses as the data for each business is not required or tracked in any one format at the City.  This evening staff would like to discuss potential options for gathering certain contact information for local businesses and what might be the most effective ways to make sure the information is current in future years.  This item should also potentially be discussed in some form at the joint meeting with the City Council on August 10th. ECONOMIC DEVELOPMENT COMMISSION STAFF REPORT Tuesday, July 14, 2020 Subject Discussion of CARES Act Funding Grants for Local Small Businesses Section NEW BUSINESS Item No: E.2. Prepared By Greg Sticha, Finance Director File No:  BACKGROUND Staff will be providing information the night of the meeting as guidance on this item is very unclear at this point. ECONOMIC DEVELOPMENT COMMISSION STAFF REPORT Tuesday, July 14, 2020 Subject Discussion of Business/Community Survey of Local Businesses Section NEW BUSINESS Item No: E.3. Prepared By Greg Sticha, Finance Director File No:  BACKGROUND We will be discussing the possibility of creating a local business survey for our local businesses and community members to share input about what types of new businesses each group would like to see within the city.