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Agenda and PacketAGENDA  CHANHASSEN ECONOMIC DEVELOPMENT COMMISSION MONDAY, AUGUST 17, 2020, 7:00 PM CITY COUNCIL CHAMBERS, 7700 MARKET BOULEVARD A.WORK SESSION B.CALL TO ORDER C.APPROVAL OF MINUTES 1.Approval of Minutes dated July 14, 2020 D.OLD BUSINESS 1.Update on CARES Act Funding Grants for Local Small Businesses E.NEW BUSINESS 1.Review of PowerPoint Presentation for Joint Work Session with the City Council F.CORRESPONDENCE DISCUSSION G.ADJOURNMENT ECONOMIC DEVELOPMENT COMMISSION STAFF REPORT Monday, August 17, 2020 Subject Approval of Minutes dated July 14, 2020 Section APPROVAL OF MINUTES Item No: C.1. Prepared By Nann Opheim, City Recorder File No:  ATTACHMENTS: Economic Development Commission Summary Minutes dated July 14, 2020 CHANHASSEN ECONOMIC DEVELOPMENT COMMISSION REGULAR MEETING JULY 14, 2020 Chairman Sanford called the meeting to order at 7:00 p.m. MEMBERS PRESENT: Jim Sanford, Kathleen Donovan, Steve Stamy and Adam Schaefer MEMBERS ABSENT: James Ebeling STAFF PRESENT: Greg Sticha, Finance Director; and Jake Foster, Assistant City Manager APPROVAL OF MINUTES: Schaefer moved, Stamy seconded to approve the Minutes of the Economic Development Commission meeting dated June 9, 2020 as presented. All voted in favor and the motion carried unanimously with a vote of 4 to 0. Greg Sticha asked that the agenda be amended to discuss item E-2 prior to D-1. DISCUSSION OF CARES ACT FUNDING GRANTS FOR LOCAL SMALL BUSINESSES. Greg Sticha presented information on this item for the City’s share of the CARES Act Funding Grant in the amount of $1,978,000 and discussed eligible expenses, i.e. city facility safety improvements, and small business grant award program. He explained that this grant money must be spent by November 15, 2020. Chairman Sanford asked if there will be rules and regulations published about eligibility for this grant funding, if the City’s payroll suffered due to the COVID-19 pandemic, if Carver County received any grant money for public safety payroll, and penalties for using the eligible money incorrectly. He suggested more research be done on allocating dollars through the small business award program and the financial impact on small businesses. Greg Sticha explained that it will be staff’s recommendation to hire a firm through Carver County to handle the small business grant application process. FOLLOW UP DISCUSSION OF EDC GOAL – CONSIDERATION OF CREATION OF BUSINESS SUBSIDY PROGRAM. Greg Sticha provided background information on previous discussions and presented three items for review. Adam Schaefer favored using the grant program moving forward. Chairman Sanford suggested the City not go too narrow for a business subsidy program after determining a funding source. Greg Sticha agreed that a funding source needs to be determined but that the commission needs to let the council know examples of how the business subsidy program should be considered. Chairman Sanford asked for clarification on the role of the Economic Development Commission in advising the City Council on a business subsidy program. Chanhassen Economic Development Commission – July 14, 2020 2 Commissioner Stamy asked what kind of presentation will be presented at the joint meeting with City Council and the possibility of holding a special meeting to come up with that information. Commissioner Donovan stated she did not think a special meeting was necessary and the need to keep the presentation at a high level and not too specific. Greg Sticha explained how he will set up a power point presentation suggesting the emergency grant assistance program and low interest micro loan program is what is being considered by the commission and asked that commission members email a list of community benefits for these two programs. Jake Foster reminded commission members not to discuss amongst themselves via email which would violate the open meeting law. DISCUSSION OF GATHERING LOCAL BUSINESS CONTACT INFORMATION. Greg Sticha explained that Steven Stamy suggested that this item be added for discussion. Commissioner Stamy discussed his thoughts behind the need for establishing a local business contact list to get local businesses more information. Chairman Sanford suggested commission members attend a Buy Chanhassen and Southwest Chamber of Commerce meetings. Jake Foster stated that he would contact Vernelle Clayton with Buy Chanhassen and the Southwest Chamber of Commerce to get discussion started. DISCUSSION OF BUSINESS/COMMUNITY SURVEY OF LOCAL BUSINESSES. Commissioner Stamy explained the need for better communication with local businesses. Commissioner Donovan suggested after the City receives the local business contact information, then do a Survey Monkey. Greg Sticha advised on the risks associated with the commission communicating with local businesses who maybe don’t want to be notified by the City. Donovan moved, Stamy seconded to adjourn the meeting. All voted in favor and the motion carried unanimously with a vote of 4 to 0. The Economic Development Commission meeting was adjourned at 8:40 p.m. Submitted by Greg Sticha Finance Director Prepared by Nann Opheim ECONOMIC DEVELOPMENT COMMISSION STAFF REPORT Monday, August 17, 2020 Subject Update on CARES Act Funding Grants for Local Small Businesses Section OLD BUSINESS Item No: D.1. Prepared By Greg Sticha, Finance Director File No:  SUMMARY The Finance Director will provide the EDC with an update on CARES Act Funding and the Council's discussion of a grant program for local small businesses. ECONOMIC DEVELOPMENT COMMISSION STAFF REPORT Monday, August 17, 2020 Subject Review of PowerPoint Presentation for Joint Work Session with the City Council Section NEW BUSINESS Item No: E.1. Prepared By Greg Sticha, Finance Director File No:  ATTACHMENTS: Joint CC ppt JOINT CITY COUNCIL/EDC MEETING Thanks for having us and for giving us this opportunity to serve! JOINT CITY COUNCIL/EDC MEETING Our 2020 Goals •Create a Business Subsidy program using either a levy, abatement, TIF or other financing mechanism to help offset costs of barrier of entry. (2020) •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. (2020) •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. (2020/2021) •Improve walkability/connectivity of the downtown, in particular over highway 5. (2021) •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 . (2021) JOINT CITY COUNCIL/EDC MEETING Items We Think The City Council Should Consider •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. •The EDC strongly supports a local lodging tax for the creation and financial support of a Visitors/Convention Bureau. •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. JOINT CITY COUNCIL/EDC MEETING Our First Goal of 2020 -Business Subsidy Programs For Consideration •The EDC believes the City Council should eventually consider the creation of a levy to potentially support some Business Subsidy Programs. Examples could include: An emergency assistance grant award program (similar to the one created using CARES funds) and/or a low interest micro loan program. Benefits of such a program would include ✓Increase the city tax base ✓Retain small businesses and assist with keeping a variety types of businesses ✓Attract new businesses which will also offer residents more choices and competitive prices ✓Allow small businesses to maintain jobs and creation of new jobs ✓Builds trust and partnerships with local small businesses ✓Shows commitment elected officials, appointed commissions and residents have to small businesses in Chanhassen ✓Attain a competitive advantage versus other communities in the area ✓Ability to improve local business perception in our marketplace JOINT CITY COUNCIL/EDC MEETING Our Second goal of 2020 -Look to gain contact information of local businesses •The EDC believes it is important to begin communicating with our local businesses •We have already been in communication with SW Chamber & Buy Chanhassen •Having local business contact information would allow the City and the EDC to: ✓Send messages and information in critical times ✓Allow for surveying and asking how the city can help ✓Sharing relevant program information JOINT CITY COUNCIL/EDC MEETING Questions and Feedback? We look forward to this opportunity to serve the city and the local business community!!!