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09-14-2021 EDC Agenda and Packet A.7:00 P.M. - CALL TO ORDER B.APPROVAL OF MINUTES B.1 Approve Economic Development Commission Minutes dated June 8, 2021 C.OLD BUSINESS D.NEW BUSINESS D.1 Discuss Downtown Vision - Kate Aanenson D.2 Discuss Roadway Projects/Downtown Walkability - Charles Howley D.3 Discuss August 9, 2021 Urban Land Institute/Navigating Your Competitive Future Joint Meeting E.ADMINISTRATIVE PRESENTATIONS E.1 Collaboration with Environmental Commission on Environmental Initiatives F.CORRESPONDENCE DISCUSSION F.1 Commissioner Appreciation Day Event Invitation G.ADJOURNMENT AGENDA CHANHASSEN ECONOMIC DEVELOPMENT COMMISSION TUESDAY, SEPTEMBER 14, 2021 CITY COUNCIL CHAMBERS, 7700 MARKET BOULEVARD 1 Economic Development Commission Item September 14, 2021 Subject Approve Economic Development Commission Minutes dated June 8, 2021 Section APPROVAL OF MINUTES Item No: B.1 Prepared By Kim Meuwissen, City Clerk File No: SUMMARY BACKGROUND DISCUSSION RECOMMENDATION ATTACHMENTS June 8, 2021 EDC Summary Minutes 2 CHANHASSEN ECONOMIC DEVELOPMENT COMMISSION REGULAR MEETING JUNE 8, 2021 Chairman Anderson called the meeting to order at 7:00 p.m. MEMBERS PRESENT: Jim Sanford, James Ebeling, Eric Anderson, and David Kressler. MEMBERS ABSENT: Kathleen Donovan. STAFF PRESENT: Laurie Hokkanen, City Manager; Bob Generous, Senior Planner; Jake Foster, Assistant City Manager, Elise Ryan, Mayor. APPROVAL OF MINUTES: APPROVE ECONOMIC DEVELOPMENT COMMISSION MINUTES DATED MAY 11, 2021 Member Sanford made a note on page 6, and clarified a point he was trying to make. He asked to amend the minutes as he was talking about striking not only parking stalls, but also the paved surfaces. Member Sanford moved, Member Ebeling seconded, to approve the Minutes of the Economic Development Commission meeting dated May 11, 2021 as amended. All voted in favor and the motion carried unanimously with a vote of 4 to 0. City Manager Hokkanen requested that Chairman Anderson take item D1) Presentation of Strategic Plan prior to C1) Business Feedback Survey Discussion this evening. Chairman Anderson agreed and welcomed Mayor Ryan. NEW BUSINESS: PRESENTATION OF CITY COUNCIL STRATEGIC PLAN Mayor Elise Ryan noted she and Ms. Hokkanen have been going around to the Commissions to present the strategic plan. Many times Councilmembers and Staff receive questions about the direction of the City and at the beginning of the year a consultant was hired and brought the City through an extensive strategic planning process. They did a SWOT analysis, independently answered questions, attended a two-day seminar with City Council and department heads, and came up with the strategic plan which consists of Mission, Vision, Values, and Strategic Priorities. They laid out a roadmap for everyone to follow going forward and Mayor Ryan noted they have gone through many changes in the past two years and it was very important for this next leadership group to get on the same page to move the City forward. She said the strategic 3 Economic Development Commission – June 8, 2021 2 plan is a living document and does not just get put on a shelf but is something the Council will be reviewing on an annual basis and is what City Staff operates against when they are putting department plans together. City Manager Hokkanen noted there is a webpage where one can download the Strategic Plan and walked the Commissioners through the Mission, Vision, and Values. She noted going forward, innovation will be a big part of what they do. As it relates to the work of the EDC – Ms. Hokkanen said “if you have an idea, talk to us about it.” She noted it may not work out, the rules in place may be good rules that they want to adhere to, but they want to be known as a place that is happy to have a conversation, do brainstorming, and take on something that has potential. For example in the food truck ordinance, historically Chanhassen had a pretty pat stance on food trucks and had not looked at it in a long time. Going through the EDC and the Planning Commission gave a lot of good feedback for changing that. It was noted at the Planning Commission that it is a great opportunity to test and learn. Ms. Hokkanen shared that is the philosophy they are all trying to live now, that it is okay to try things. She also highlighted engagement, noting they want to provide opportunities for residents to connect to the community, each other, and the natural environment. She showed the strategic plan summary on screen and explained the five strategic priorities: Financial Sustainability, Asset Management, Development and Redevelopment, Operational Excellence, and Communications. She shared some desired outcomes in Development and Redevelopment, which includes diversity in new development, for example multiple types of development and at least three types each year. The second desired outcome relates to the fact that Chanhassen is running out of green space to develop and in order to stay vibrant, keep the tax base up, keep the amenities, they will need to do redevelopment that is consistent with the City’s vision. Ms. Hokkanen stated they want to revisit the Downtown Vision Plan, recommit, make tweaks, and identify roadblocks to redevelopment. Finally, she noted they want new, innovative places and spaces. Again, if someone has an idea, talk to them and they will see if they can make it happen or if it makes sense for the City. Chairman Anderson asked Ms. Hokkanen and Mayor Ryan where they want the EDC focusing their time. Ms. Hokkanen replied the ways that the EDC will add value will be in the Development and Redevelopment. A couple of other areas may be in Operational Excellence as they want to develop Customer Service standards and practices, conduct efficiency improvement projects, and how the City can be more friendly to businesses and developers. The next step for the City is to take these Strategic Initiatives and build out a plan for how they will execute each of them with timelines and a work plan. She noted they have purchased software called Envisio which is built specifically for governments to track strategic planning and comes with built-in scorecards, dashboards, and automated reporting capabilities. If there are things that the EDC really wants to track, they can let Mr. Generous or Mr. Foster know and they can build some of those reports to come to the Commission quarterly. 4 Economic Development Commission – June 8, 2021 3 Member Sanford said regarding accountability, are there projects assigned to specific Staff members? Ms. Hokkanen replied yes. The Envisio system is color-coded and people will be able to follow and see if they are on track, experiencing disruption, or if they have failed to meet deadlines. Member Sanford said when they say “redevelopment consistent with our vision” and he looks back to the vision it references vibrant businesses. He asked if that is the focus of the vision for redevelopment and the EDC. Ms. Hokkanen noted in this context it refers more to some of the plans they have such as the Comprehensive Plan, the Downtown Master Plan, and a less specific use of the term “vision.” Member Sanford clarified the EDC should be looking at the Comprehensive Plan and the Downtown Master Plan and that is the vision they should be talking about. Ms. Hokkanen replied yes, and they have not mapped that timeline out but is something she envisions the Commissions and City Council will be doing. Member Ebeling noted the Downtown Master Plan is very broadly written as there are not a lot of targeted things to measure. Perhaps they will have to talk about more targeted, measurable objectives as they go through it. Mayor Ryan thinks looking at it again will be very valuable with new priorities, new Members, new Council, new Staff, and as they are focusing on innovation a lot has changed so it may be a good time to look at the Downtown Vision Study again. Member Sanford asked if the goal for walkability will remain a big piece. Mayor Ryan replied yes, the walkability in the City is a huge priority. Chairman Anderson noted it might be helpful with the Downtown Vision Plan to have a separate session coinciding with other Commissions to talk through those common objectives they may want to look for. Ms. Hokkanen agreed and noted they have an Urban Land Institute (ULI) joint session on their calendar in August as they want to be grounded in reality. ULI will come in with a panel and give the City some of that grounding; then there will be an opportunity for all three Commissions (Planning Commission, EDC, and City Council) to dialogue so everyone is moving in the same direction. Member Sanford is curious about reconciling ordinances with the Comprehensive Plan goals; he asked if they are looking at zoning or what they are looking at there. 5 Economic Development Commission – June 8, 2021 4 Senior Planner Generous said it is reconciling, it is asking do the ordinances permit the City to implement the Comprehensive Plan or does it provide obstacles. Mayor Ryan added they want people to know they are open for business and are open to considering ideas. As Mr. Generous said in reconciling ordinances, there are certain restrictions or zoning regulations where someone may look and say it is zoned one way so they cannot do anything, or there is an ordinance so they cannot do anything. She clarified what they are saying is that they want to make sure everything has been reviewed so that that it is open and available for consideration. Member Sanford said if they want to encourage certain types of development, are they looking at the zoning as incentivizing some people in certain types of developments? Ms. Hokkanen is not sure they will use zoning as a way to encourage types of businesses to come, but they will be looking at what tools the City has and which ones the Council is interested in using, such as Tax Increment Financing (TIF), or a bank of sewer and water credits. Member Kressler thinks it is a really important point that Council is willing to look at ordinances and is a direction they can make a lot of progress on. Member Sanford asked about the discussion on the SWOT analysis and noted trust is listed as a big issue, both internal and external. Mayor Ryan replied there is a general mistrust of government and how things are decided, so they know they must continue to gain trust with residents through engagement and communication. Trust in terms of Staff and Council was a conversation about some of the challenges previously and that at this point they are all here to support each other and grow together. She thanked the Commission and said if they have any questions or comments to reach out. OLD BUSINESS: BUSINESS FEEDBACK SURVEY DISCUSSION Senior Planner Bob Generous noted from a Staff position they give the survey to people that come in and work at City Hall asking how the interaction went, what went well, what did not go well, and how can it be improved. Chairman Anderson stated there are people who may do business that are staying away or they are not hearing from them, and then there are existing businesses. He asked how they can nurture those who are in the City and make sure they are happy and don’t leave. Member Ebeling agrees and thinks they tailor the survey or feedback separately for those. He thinks the City may know who some of the potential businesses are and need to figure out what they need to ask them. 6 Economic Development Commission – June 8, 2021 5 Chairman Anderson asked if they use the Chamber of Commerce to help identify current businesses. Mr. Foster thinks a way of potentially attracting or retaining businesses is building a reputation as a City that they are good to work with and easy to work with. The way to do that may be reaching out to people who have gone through this development process to find out how they can improve. Member Sanford thinks it would be interesting to get some feedback from businesses regarding the Downtown Plan about what they may like to see. He sees it as not just reactive but proactive in asking what the businesses want and need from the City to help their business grow. Chairman Anderson suggested asking the top 10 businesses how they think the City is doing and if there are things they should do differently, whether the businesses want to expand, stay in the City, etcetera. Then there are the groups of smaller businesses, the incubators, job-creators. Mr. Foster asked the Commission how they would like to administer these surveys. Member Kressler noted there would be two different viewpoints, one from a business that creates jobs and another from a business that creates jobs and provides a service. He thinks they may get different answers from those and wondered if there is a way to tailor questions to each. Mr. Foster noted they can create forms on their website so perhaps they could ask questions and provide a blank for open feedback. They could share the link to the form via email. Member Ebeling wondered about the feedback Ms. Aanenson receives organically from developers and whether they could track some of that. Chairman Anderson asked if they have talked to any other cities that have done this with their businesses to find out what has been effective and what has not. Mr. Foster replied last fall he spoke with someone in Chaska as they were doing roundtable discussions. They could explore something like that and he can reach out to other cities, as well. Member Ebeling thinks the face-to-face dialogue is way better than any survey. He noted the Open House they hosted was not a failure, but only five businesses came through. Member Sanford thinks they may need to have a topic of interest but the roundtable is an interesting idea. He said it might be interesting to hear from residents about what services and businesses they want to see in the community as it would be worth understanding, as well, although that may be a Planning Commission area. Mr. Foster said if they are looking for feedback from residents and business owners, FlashVote, which the City is implementing, would be a great tool when they get there. 7 Economic Development Commission – June 8, 2021 6 The Commissioners discussed utilizing the Chamber of Commerce or the Rotary Club to assist in reaching out to business owners for the survey. ADMINISTRATIVE PRESENTATION: None. CORRESPONDENCE DISCUSSION: CDA COMMUNITY AND ECONOMIC DEVELOPMENT UPDATES MAY 14, 2021 Mr. Generous noted there is a one-page document to let them know what the Community Development Agency (CDA) has out there to assist businesses. He noted they are a great agency, which is part of Carver County Community Development. He stated they do housing and redevelopment. Chairman Anderson asked when they were referencing the Strategic Plan doing a CDA project, would they partner with the CDA on that? Mr. Generous stated for the Lake Place Development they received a grant for the project to assist with storm water improvements because the underground systems are very expensive. He believes they received $75,000 to assist that. Mr. Foster noted it seems like the biggest function of the CDA is the grant making, helping, processing, and identifying piece. Mr. Generous just received the housing performance score survey from the Met Council for 2020. He noted there is an “ALOHA amount” that each community needs to spend on affordable housing and Chanhassen exceeds that because the CDA has taxing authority in Chanhassen and gets about $600,000 a year to help towards the housing programs. Member Sanford asked regarding the Carver County Youth Employment program, who is being recruited, employees or businesses? Mr. Generous would think it is the agency trying to get businesses that have employment opportunities. He asked if the Commission would like to finish their strategic plan review since the City is working on its strategic plan. He noted they have the strategies, objectives, and timelines and they could tie it more closely to the Council’s strategic plan. Chairman Anderson suggested at the July meeting, they talk through what is important to the EDC and what they want to bring up when they meet with the Planning Commission and City Council. Member Sanford thinks the place that really affects the EDC is the Development and Redevelopment. He does not think they should make a plan until after hearing what the Planning 8 Economic Development Commission – June 8, 2021 7 Commission and Council have to say. He suggested looking at what they would like to see and stated the Downtown plan would take a tremendous investment. The Commission decided to put it on the agenda for the next meeting. ADJOURNMENT: Chairman Anderson adjourned the Economic Development Commission meeting at 8:07 p.m. Submitted by Bob Generous Senior Planner Prepared by Kim Meuwissen Office Manager 9 Economic Development Commission Item September 14, 2021 Subject Discuss Downtown Vision - Kate Aanenson Section NEW BUSINESS Item No: D.1 Prepared By Bob Generous, Senior Planner File No: SUMMARY Community Development Director Kate Aanenson will be discussing the Downtown Chanhassen Vision Update BACKGROUND Link to Downtown Chanhassen Vision Update: https://www.ci.chanhassen.mn.us/1385/Downtown-Vision-Plan DISCUSSION RECOMMENDATION ATTACHMENTS 10 Economic Development Commission Item September 14, 2021 Subject Discuss Roadway Projects/Downtown Walkability - Charles Howley Section NEW BUSINESS Item No: D.2 Prepared By Bob Generous, Senior Planner File No: SUMMARY Director of Public Works/City Engineer Charles Howley will discuss downtown roadway improvement projects and pedestrian improvements. BACKGROUND One of the Commission's primary goals is to improve walkability/connectivity of the downtown, in particular over Highway 5. DISCUSSION RECOMMENDATION ATTACHMENTS 11 Economic Development Commission Item September 14, 2021 Subject Discuss August 9, 2021 Urban Land Institute/Navigating Your Competitive Future Joint Meeting Section NEW BUSINESS Item No: D.3 Prepared By Bob Generous, Senior Planner File No: SUMMARY The Commission wanted to discuss their takeaway from the presentation and joint meeting with City Council and the Planning Commission. BACKGROUND The EDC was provided with a recommended work plan for 2021. DISCUSSION How does what was heard and learned at the ULI presentation impact and or direct the efforts of the EDC? RECOMMENDATION Bring your notes and share insights and ideas for implementing the EDC work plan. ATTACHMENTS 2020 Year in review 2021 work plan2 pages 1-5 only.pdf ULI Agenda and background Navigating Your Competitive Future.pdf 12 MEMORANDUM TO: Economic Development Commission FROM: Kate Aanenson, Community Development Director Bob Generous, Senior Planner DATE: February 9, 2020 SUBJ: 2020 Year in Review and 2021 Recommended Work Plan BACKGROUND As required by the City Code section 2-46.13 (e) Reports: The Commission will produce an annual report for the City Council detailing the community development activities of the past year. The report also provides a summary of residential and commercial construction activities and outlines the progress that has been made toward achieving the goals of all strategic plans. 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 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. Below is a summary of items the EDC reviewed in 2020 as well as possible work projects for 2021. If there are additional items, projects, or research the EDC would like to undertake for 2021, please provide direction to staff. 2020 REVIEW The EDC adopted a list of 2020 goals. 2020 was a learning year for the EDC. Members were appraised of the roles for economic development. The EDC was advised of the city’s efforts in development review and economic development. The EDC was provided updates on CARES funding and community support for local businesses. The EDC had proposed another open house for area businesses. However due to COVID-19, this outreach could not be done. The EDC evaluated the comments and concerns from the 2019 open house. 13 Economic Development Commission Annual Report February 9, 2021 Page 2 In 2020, the city issued building permits for 68 dwelling units, which was approximately 34 percent (34%) of our projected housing growth for 2020. We are projecting a two percent (2%) increase (approximately 200 units) in total housing stock for 2021. As can be seen in the average residential building permit data (128 single-family and 67 attached units), there is currently sufficient approved single-family residential lots available for development with a lot inventory of 178 platted single-family lots, but a deficiency of attached single-family lots with 14 lots available. With the approval of the Lake Place at Powers Ridge project, 110 apartment units are proposed for development. Given this inventory and current housing demand, the city should be able to achieve its housing projection. 2021 WORK PROGRAMS Projects The EDC will review the 2020 goals and prioritize and create a list of goals for 2021. Staff encourages the EDC to concentrate their efforts in 2021 on the following projects: • Develop a strategic plan for economic development for the city. • Cooperate and coordinate with Buy Chanhassen and the Southwest Area Chamber of Commerce on promoting business retention, expansion and recruitment to Chanhassen. • Create a feedback survey for developers and business owners to be used to understand and improve city interaction with the development and business community. • Investigate a signage idea/plan for the promotion of businesses in the downtown. • Work with the school district and Chanhassen businesses to market job opportunities and support the creation of local jobs. City Code Staff shall submit City Code amendments to the EDC for comments relative to economic development. Educational Opportunities 1. Comprehensive Plan The city adopted the 2040 Comprehensive Plan on February 10, 2020. Staff will bring some chapters of the 2040 Comprehensive Plan to the EDC for discussion and review in conjunction with economic development. 14 Economic Development Commission Annual Report February 9, 2021 Page 3 2. Miscellaneous Staff will provide periodic items to the EDC as the schedule and time permit. Some items may include housing demands and trends, demographic statistics, mixed-use development, sustainable development, development trends, redevelopment issues, transportation projects, senior-friendly cities, etc. ACTION The EDC may suggest additional items which they may review/research in 2021. Any other suggestions that the Commission would like to see staff address will be added to the list. Subject to Economic Development Commission concurrence, staff will forward this report to the City Council. ATTACHMENTS 1. 2020 Goals g:\plan\economic development\edc\2021\2020 year in review 2021 work plan2 pages 1-5 only.docx 15 Economic Development Commission Annual Report February 9, 2021 Page 4 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 a 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 the local business community. • Improve city competitiveness by making sure it is move-in ready for all forms of business. • Engage with Buy Chanhassen and SW 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. 16 Economic Development Commission Annual Report February 9, 2021 Page 5 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. 17 18 19 Economic Development Commission Item September 14, 2021 Subject Collaboration with Environmental Commission on Environmental Initiatives Section ADMINISTRATIVE PRESENTATIONS Item No: E.1 Prepared By Bob Generous, Senior Planner File No: SUMMARY I will provide a brief discussion of examples of items or programs this could entail. The Environmental Commission is looking to create an informal conduit to distribute their initiatives to local businesses. Environmental Commissioner Jeff Harken will present the invitation to the EDC to collaborate on environmental initiatives. BACKGROUND DISCUSSION The Environmental Commission wants to get in touch with the EDC to see if there’s an opportunity to work together on promoting environmental initiatives to local businesses. What would be the best way to connect the two? RECOMMENDATION ATTACHMENTS 20 Economic Development Commission Item September 14, 2021 Subject Commissioner Appreciation Day Event Invitation Section CORRESPONDENCE DISCUSSION Item No: F.1 Prepared By Kim Meuwissen, City Clerk File No: SUMMARY BACKGROUND DISCUSSION RECOMMENDATION ATTACHMENTS Commissioner Appreciation Day Event Invitation 21 22