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2021 03 09CHANHASSEN ECONOMIC DEVELOPMENT COMMISSION REGULAR MEETING MARCH 9, 2021 Chairman Sanford called the meeting to order at 7:00 p.m. MEMBERS PRESENT: Jim Sanford, Kathleen Donovan, and James Ebeling, MEMBERS ABSENT: Steve Stamy and Adam Schaefer STAFF PRESENT: Bob Generous, Senior Planner PUBLIC PRESENT: None. APPROVAL OF MINUTES APPROVE ECONOMIC DEVELOPMENT COMMISSION MINUTES DATED FEBRUARY 9, 2021 Member Ebeling moved, Member Donovan seconded to approve the Minutes of the Economic Development Commission meeting dated February 9, 2021 as presented. All voted in favor and the motion carried unanimously with a vote of 3 to 0. OLD BUSINESS. None. Senior Planner Bob Generous stated at the April 2021 meeting the Economic Development Commission (EDC) would elect the Chair and Vice Chair and re-adopt the by-laws. NEW BUSINESS. STRATEGIC PLANNING PROCESS DISCUSSION: MISSION, VALUES AND STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS (SWOT) ANALYSIS Mr. Generous reviewed that the EDC would consider their Mission and Visions, Values, and a Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis. Mission and Vision Mr. Generous asked the Economic Development Commission members what they identified as the function of the Commission Chair Sanford stated that City Ordinance 643 defines the EDC purpose as “The Economic Development Commission (EDC) is an advisory body to the City Council and the Economic Development Authority charged with the responsibility of researching, reviewing, and making Economic Development Commission – March 9, 2021 2 recommendations on issues related to economic development. The EDC will review ways in which the city can expand existing businesses, attract desirable new business, and revitalize existing businesses and the community as a whole.” Chair Sanford asked Mr. Generous of the City Attorney could be consulted to see if the EDC is allowed to conduct meetings without making them public meetings. He felt it was hard to research, review, and make recommendations when the Commission meets for only one hour per month. Mr. Generous asked if there was a priority the EDC wanted to promote - such as retaining existing businesses, promoting new businesses, or assisting with expansion of existing businesses. Member Ebeling felt that the goals should encompass all three areas. Member Donovan felt it was important to focus more on retention of existing businesses, especially given the challenges they have faced over the past year due to COVID-19. Chair Sanford mentioned that he sits on a credit committee at a bank and the federal money has been an incredible tool in keeping businesses around. Businesses have been able to utilize Paycheck Protection Program (PPP) loans which are not taxable. Carver County has distributed federally allocated money to local businesses. The real question will come in a year or so when federal money is not around and loans will no longer be paid by the government. Member Ebeling stated that many PPP loans are forgivable. He is more concerned with inflation. Core Values Mr. Generous asked the EDC about their core values - the must and must nots - based on the idea of business retention, expansion, and promotion of new businesses. He has heard emphasis on a need to communicate. Chair Sanford asked if the City of Chanhassen had a vision statement. Member Ebeling stated the vision was “Community for Life - Providing for Today and Planning for Tomorrow”. Mr. Generous added that the City Council is currently working on a Strategic Plan that will include economic development. Chair Sanford agreed that communication was an important consideration. He also added integrity as a potential goal. The goal of the EDC is to expand and promote the city, encourage communication, and work with integrity. Economic Development Commission – March 9, 2021 3 Member Donovan agreed that integrity, honesty, and ethics were important while also engaging with current and prospective businesses that are interested in building in Chanhassen. She added transparency and open dialogue as important values. Mr. Generous stated that one concern with economic development is who gets to pick the winner? The City attempts to make things level by giving everyone the same rules to follow. Chair Sanford stated that some cities seem to encourage certain types of businesses and seek them out. Is Chanhassen a service center or a destination? If Chanhassen wants to be a destination, the plan would look different than if they wanted to maintain their reputation as a service center (or “trunk community”). Should Chanhassen focus on encouraging certain types of businesses? Member Ebeling felt that an entertainment center, such as Top Golf, would be well received. Chair Sanford agreed that a convention or banquet hall would be a good draw for people who may stay all weekend while frequenting local hotels and restaurants. He felt there could be entertainment options for all ages. Something like Top Golf could draw people from 20-30 minutes away in all directions. Perhaps there is space to build in southern Chanhassen. Mr. Generous commented that a driving range was opening on Flying Cloud Dr. (Golf Zone) Member Ebeling felt that a site which provided for events, work parties, games, food, and drinks in a heated year-round atmosphere would be a good fit. Member Donovan questioned the amount of real estate needed for a facility such as Top Golf. She agreed with the idea of making Chanhassen a destination with the addition of something like a banquet hall. Could something be built across from Paisley Park. She mentioned the Avienda retail site that has been proposed and suggested other businesses could connect to it as part of a bigger picture. Member Ebeling stated that Chanhassen’s downtown area is laid out differently. The City of Excelsior has space to park and walk but Chanhassen’s infrastructure would require hundreds of millions of dollars to reconfigure. Maybe the City could focus on one area of downtown and designate it for certain types of businesses, food trucks, or pop-ups to drive community events and traffic downtown. Member Ebeling felt the layout of downtown Chanhassen was one of its weaknesses. Navigating between destinations required driving rather than walking. An entertainment type business could help the City. Economic Development Commission – March 9, 2021 4 Chair Sanford asked Mr. Generous if the area across from Paisley Park was part of the farm or Lake Ann. Mr. Generous commented that Moments of Chanhassen, a Senior continuing care facility, would be built in this area. Mr. Generous reviewed that a Core Value was the desire for people to come to Chanhassen. Chair Sanford agreed that Chanhassen could emphasize being a destination. Mr. Generous stated that the Economic Development Commission was an advisory board to the City Council, whether or not the Council implemented suggestions. The EDC can provide the Council with suggestions and steps. Chair Sanford added discussions may also involve real estate development which would be under the Planning Commission. Chair Sanford asked Mr. Generous if the park north of City Hall was owned by the City. Mr. Generous responded that it was owned by the City. Chair Sanford asked if the City owned Lake Ann Park. Mr. Generous said the City owned much of the park except for the west side of the lake, which was under private ownership guided for high, medium, and low-density residential development. The current owners own about 200 acres and have no intention of developing at this time. The City’s vision is to have a parkway all around Lake Ann. Strengths Mr. Generous asked the Commission members what they considered the EDC strengths, weaknesses, opportunities, and threats which affect economic development. Member Ebeling noted the following strengths: ● Strong community feel and base ● People like Chanhassen ● People feel part of the community ● Small town feel but close to the Twin Cities ● Good employment base ● Good affluence ● Good population growth ● Amenities such as parks, lakes, and trails Economic Development Commission – March 9, 2021 5 ● Lots of young motivated families that want to be part of the community. This is a positive to help drive business growth. Member Donovan noted the following strengths: ● Main Street. She noted, however, that parking lots against the sidewalk instead of businesses next to sidewalks make it difficult to notice businesses from the road. ● Two large freeways coming through Chanhassen to feed into the city ● Strong schools ● Strong government ● Attracting families, in growth mode ● Outdoor paths and walkways ● Natural resources including the Arboretum and other places of natural interest ● Lots of churches and faith-based groups, private, and public schools provide a mixture of choices for people Chair Sanford noted the following strengths on behalf of Member Schaefer who submitted comments by email: ● One of the best locations for access to lakes ● Nice mixture of public and private schools including two high schools ● Infrastructure ● Balanced budget ● City government has robust planning and development relations ● Access to a thriving downtown Chair Sanford noted the following strengths: ● Attractions such as the Chanhassen Dinner Theatre, Paisley Park, and the Arboretum ● Good access via major roadways ● Housing development ● Increasing population projected at 10,000-12,000 more residents over the next 10 years which, if you’re a business owner, is a good thing Weaknesses Member Ebeling noted the following weaknesses: ● Lack of walkability ● Lack of entertainment ● Trunk community ● Higher fees compared to neighboring communities ● Collaboration, cohesion, and communication between businesses ● Lack of affordable housing. Current housing is expensive which inhibits the employment base for surrounding businesses. There is a need for housing for lower income earners. Member Donovan noted the following weaknesses: Economic Development Commission – March 9, 2021 6 ● Connecting downtown to businesses across Highway 5 ● Walkways ● Creating more moments of interest and gathering spaces ● Small businesses are situated 20-30 yards from the road and parking lots are what people experience first ● Family fun and entertainment including more kid friendly places Chair Sanford noted the following weaknesses on behalf of Member Schaefer who submitted comments by email: ● Trunk community ● Split downtown ● City staff resources Chair Sanford noted the following weaknesses: ● Split downtown ● Lack of a community center - a place to have events as well as places to stop and draw people’s attention ● Parking lot first development ● Southwest Chamber of Commerce and Buy Chanhassen. When looking at communities such as Wayzata and Excelsior, they have their own Chambers and do a lot of promotion of the business community. ● City’s hesitancy to use Tax Increment Financing (TIF) funding. Currently, the City has one TIF district while other cities have dozens. Chanhassen may have to look at radical fundraising to finance a cohesive community center. Opportunities Member Ebeling noted the following opportunities: ● Tax Increment Financing ● Business subsidy programs - such as microlending for new or existing businesses or lodging tax ● Undeveloped land Member Donovan noted the following opportunities: ● Attract family friendly businesses (such as Avienda) ● Capturing people’s interest as they’re driving through ● Keeping the community engaged in what is going on in Chanhassen, reaching current residents ● Providing small businesses an opportunity to be featured on the City website - such as private/public advertisements, points of interest, and highlighting businesses ● Utilizing the local paper to highlight local businesses Economic Development Commission – March 9, 2021 7 Chair Sanford noted the following opportunities on behalf of Member Schaefer who submitted comments by email: ● Ongoing land development ● Infrastructure ● Balanced budget ● Low unemployment ● High home values ● Expansion south and west Chair Sanford noted the following opportunities: ● Microlending ● Lodging tax ● Lake Ann is a way to draw people in ● Entertainment or gathering spot ● The park behind city hall to the north could be more of an attraction rather than a soccer field Threats Member Ebeling noted the following threats: ● More neighboring communities getting destination traffic Member Donovan noted the following threats: ● Chaska, Victoria, Carver, and Waconia are in a huge growth mode with tons of expensive housing ● Chaska has a Costco going in which will drive traffic to Highway 41 and make it a stopping point. Chanhassen should consider how to filter some of that traffic back to the City. ● Neighboring communities also do a good job of making people aware of what’s happening in their communities ● The cost of housing in Chanhassen is too high. The cost of land and the choices that are being made for type of builders cuts off a lot of the population - especially people who would hold blue collar jobs. Chair Sanford noted the following threats on behalf of Member Schaefer who submitted comments by email: ● Home values ● Sewer Access Charges (SAC) and Water Access Charges (WAC) fees Chair Sanford commented that neighboring cities are a threat but also an opportunity. How can the City get new residents of these surrounding cities to visit Chanhassen? The City should provide them with something they can’t find in their own city such as a service or entertainment. Economic Development Commission – March 9, 2021 8 Chair Sanford noted the following threats: ● Inertia. If the City doesn’t do something it will miss opportunity. The City needs to be prepared to take a bold step. ● COVID-19 ● Lack of funding Chair Sanford added that an opportunity could be the park near City Hall. Retail could be added on the bottom, affordable housing on the top, and the park preserved in the middle. Shopping could be brought closer to the street rather than parking lots and a city center could be created which would radically change the way that part of the City looks. Mr. Generous stated the City has a Downtown Vision Plan that looks at bringing shops closer to the street. ADMINISTRATIVE PRESENTATION. None. CORRESPONDENCE DISCUSSION. CARES FUNDING Mr. Generous stated that, in the April 2021 packet, he will include a list of the rest of the businesses who have received federal funding. CARES funding had been given to Carver County to administer and distribute to Chanhassen businesses who applied. He estimates there are 50-60 businesses on this list. ADJOURNMENT. Member Ebeling moved, Member Donovan 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 at 8:00 p.m. Submitted by Bob Generous Senior Planner Prepared by Kim Meuwissen