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HomeMy WebLinkAbout09-02-2004 Council Economic Development Committee AGENDA City of Iowa City City Council Economic Development Committee Thursday, September 2, 2004 5:30 p.m. City Hall, Lobby Conference Room 410 East Washington Street 1. Call to Order 2. Approval of Minutes - July 1, 2004 3. Presentation - Angel Investment Group Screening Committee 4. Update - University of Iowa Entrepreneurial Learning Center S. Adjournment MINUTES ECONOMIC DEVELOPMENT COMMITTEE THURSDAY. JULY 1. 2004 - 9:00 A.M. ENTREPRENEURIAL LEARNING CENTER Members Presents: Ernie Lehman, Bob Elliott, Regenia Bailey Members Absent: None Council Members Present: None Staff Present: Karin Franklin, Steve Nasby, Molly Monserud Lynn Jahn, Rebecca Neades, Rebecca Schultz, Tom Walz, Ofer Sivan, Nafaly Stramer, John Kenyan, Lisa Spellman, Poi Lu, George McCroy Others Present: CALL TO ORDER Chair Ernie Lehman called the meeting to order at 9:00 A.M. TOUR OF UNIVERSITY OF IOWA ENTREPRENEURIAL LEARNING CENTER Lynn Jahn: the Assistant Director of the John Pappajohn Entrepreneurial Center, gave an introduction to the Entrepreneurial Learning Center. The Learning Center is open to all University of Iowa Students. The Small Business Development Center aids the Center by providing services such as Business Plan Assistance Budgets, Cash Flow Analysis, Forecasting, Loan Packaging, Regulation Compliance, Training, Strategic Planning, Market Research and Analysis, and Technology Transfer. The Entrepreneurial Learning Center has Well mark and other equity investors that have $250,000 - $500,000 available for the program. The Learning Center gives students a head start on learning how the business world works, giving them an advantage when entering the labor market. Jahn stated that there is an Entrepreneurial Workshop for students in the Arts, both performing and visual, showing the importance of the center to people in all fields of study. Entrepreneurial activities not only apply to starting businesses but expanding business as well. Students from the program can be incorporated into business to help them expand and grow. During the tour of the Learning Center, Jahn discussed that the Center had the capacity to accommodate up to 17 teams at one time. At the present time there are eight teams of students. It was discussed that two of these teams were made up of women, Discussion continued on the importance of involving women students, women mentors, and women speakers into the program so as to continue to build diversity in the field. The University of iowa has been collecting various data since 1996 continuing through the present. This data only recentiy includes information on the business clients. Lehman stated that he would like to see the data, especially the local numbers to understand what kind of relationship the business community has with the program. Elliot expressed interest in taking a tour of the Oakdale facility to further understand the University program. Bailey proposed the importance of having the program work with local developers. This would provide a great learning experience for the students as well as strengthen the relationship with the local developers. Elliot noted that the program has potential in the fact that it gets people started early. It is sometimes difficult to learn the intricacies of how a business works, and even harder to learn how to start one. This program gives students the opportunity to learn through a different medium. CONSIDERATION OF THE MARCH 30. 2004 MINUTES MOTION: Bailey moved to approve the minutes with Regenia Bailey spelled correctly. Elliot seconded the motion. The motion passed on a vote of 3 - O. DISCUSSION OF THE UNIVERSITY OF IOWA ENTREPRENEURIAL LEARNING CENTER The Committee discussed that there exists potential for high grow1h and jobs in the Iowa City area in conjunction with the University of Iowa Learning Center. The City is looking for local business expansion and is focused on job creation. Elliot would like to see an analysis of the financial situation of the University of Iowa Entrepreneurial Learning Center. Economic Development Committee Minutes July 1, 2004 Page 2 DISSCUSSION - REQUEST FOR CDBG MICRO-ENTERPRISE ASSISTANCE BY OASIS FALAFEL Naftaly Stramer and Ofer Sivan requested $25,000 in CDBG assistance as a low-interest loan to supplement the owner investment of $30,000 to start of new restaurant. The CDBG money would be used to purchase kitchen equipment and fund remodeling. Private funds would also be used for equipment and remodeling in addition to signage, advertisement and other operating costs. There was discussion by the committee on how the owner wages were incorporated into the business plan. The original application showed that the cost of labor, for the owning partners, was computed on a percentage basis instead of using an hourly wage. This was thought to have potential problems in the future, and it was recommended to have the owning partners have wage tied to the number of hours worked to reduce potential future conflict. Much of the discussion by the committee focused on the marketing scheme and the budget for advertising. The proposed budget allows for $1,800 in advertising per year. The Committee felt this number was too small and would be exhausted soon after the business opened. The applicants indicated that they would be advertising in the Add Sheet, Daily Iowan and the local phone directory are costly and the proposed budget does not take this into account. Further discussion continued to focus on marketing strategies such as word of mouth and pedestrian traffic. Bailey noted that these were not originally discussed in the business plan and the Committee felt a more detailed market strategy was necessary. Motion: Bailey moved to recommend to Council they approve a CDBG loan as proposed for capital improvements for Oasis Falafel LLC In the amount of $25,000, contingent upon the presentation of a new marketing plan. Elliot seconded the motion. The motion passed on a vote of 3 - O. Elliott asked about the possibility of a third party review the business plans of CDBG loan applicants. This would provide the committee with more information on the feasibility of potential business projects that are requesting funding. Nasby said that CDBG applicants are asked to consult with professionals (e.g. ISED, SBDC, or private CPAs). He noted that consultation with these or other professionals is typically identified in the application or business plan. Committee discussion continued that it is in the applicant's best interest to have a third party. Other possibilities discussed were the potential requirement for the owner to attend an entrepreneurial class or receive consultation from the Small Business Development Center. DISCUSSION - UPTOWN BILL'S SMALL MALL REQUESTING UPFRONT ALLOTMENT OF GRANT Nasby noted a letter from Tom Walz of Uptown Bill's Small Mall requesting payment of the $60,000 three- year grant to prepay 50% of the three-year rent. Walz said that the rental agreement allowed for a three year maximum payment of $120,000 if half of the payment is made now, and the rest on a monthly basis. Walz said that this arrangement will help Uptown Bills Small Mall plan for their expenses as there will be no surprises such as changing lease costs. Motion: Bailey moved to recommend the three-year $60,000 grant be paid up front per the request of the applicant. Elliot seconded the motion. The motion passed on a vote of 3 - O. DISCUSSION - REQUEST FOR PROPOSAL FOR MARKETING SERVICES Nasby said that the "draft" Marketing Overview that was presented by staff was based on the 2001 branding process for Iowa City sponsored by ICAD. The committee members said they liked many of the ideas in the Marketing Overview. Bailey said that she had gone over the various aspects of the City's web site and she had seen several areas that could be improved. Nasby added that the web is the primary method of collecting information for many businesses and site selection consultants and that web updates were included in the Marketing Overview. There was discussion of a possible publicist with an ICAD and Chamber of Commerce partnership. Lehman said that the Chamber of Commerce Newsletter Page was a potential way to market Iowa City. The Iowa City marketing strategy should include activities, accomplishments and concerns. ADJOURNMENT '" ~ ïª e ~ U .... = '" e c=. ~ - '" .. 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