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HomeMy WebLinkAbout02-19-2008 Council Economic Development CommitteeAGENDA City of Iowa City City Council Economic Development Committee Tuesday, February 19, 2008 8:30 a.m. Lobby Conference Room Iowa City City Hall 1. Call to Order 2. Consider approval of the minutes of the January 15, 2008 Economic Development Committee Meeting 3. 2007 Annual Economic Development Report 4. Staff time a. Downtown study follow-up meetings, schedule b. Business Friendly Cities article in Chamber newsletter (copy enclosed) 5. Committee time 6. Adjournment MINUTES PRELIMINARY CITY COUNCIL ECONOMIC DEVELOPMENT COMMITTEE JANUARY 15, 2008 CITY HALL, LOBBY CONFERENCE ROOM, 8:30 A.M. Members Present: Regenia Bailey, Connie Champion, Matt Hayek Staff Present: Wendy Ford, Tracy Hightshoe, Jeff Davidson Others Present: Mark Nolte, Craig Gustaveson, Miles Schultz RECOMMENDATIONS: Champion moved to recommend that the Memorandum of Understanding with Iowa City Area Development Group (ICAD) be approved by the City Manager's office, seconded by Bailey. Carried 3-0. CALL MEETING TO ORDER: Chairperson Regenia Bailey called the meeting to order at 8:30 A.M. APPROVAL OF MINUTES OF DECEMBER 18, 2007: Bailey noted a correction to the name "Gig" — it should be "Gigi." Champion moved to accept the minutes of the December 18, 2007 meeting as corrected, seconded by Hayek. Motion carried 3-0. DISCUSSION OF CDBG ECONOMIC DEVELOPMENT FUNDS APPLICATIONS - GUIDO'S: Hightshoe stated that this application is for Guido's Deli, located at 227 E. 1st Street. The request is for funds for working capital and to replace outdated equipment. Hightshoe noted that Guido's opened in October, 2005 as an Italian deli. In December, they opened a second location on the Kirkwood campus in Iowa City. It was noted that the applicant did provide a fair amount of funds to start up the business initially and to fund the expansion at Kirkwood. Hightshoe noted that one of the concerns is that the business has operated at a loss for the past two years, and, she noted that with CDBG funds you have to create new positions, and she questions if they can do this, working at a loss already. There is also no collateral. She further noted that due to these concerns, staff is not recommending this application. Bailey asked Laurie Magaraci of Guido's Deli if she would care to comment. Magaraci stated that since the time that she applied for these funds, she has opened her second location — the one at Kirkwood College. She stated that rent is not due until April 1, and that Kirkwood is only requiring 5% of her gross the first year, and then it goes up to 10% for the next five years. She also stated that she will have very low costs at this location, and has currently been open for about three weeks. Magaraci expects a much higher profit at this location. Bailey asked if anyone had questions for Magaraci on this request. Champion stated that the business losses are a concern for her as well. Magaraci further explained her operations at Kirkwood, and said that they are also cutting some of their evening hours at the Gilbert St. location, but they are adding breakfast hours. Also, with these funds she would like to be able to hire an assistant to help with her expansion and future plans. Bailey noted that she would not be comfortable granting these funds, especially due to the loss factor. Hayek asked if there is a policy on the level of collateral needed to fund projects. Hightshoe noted the committee has been flexible on this, and that some lenders will also be flexible on this issue. Hayek noted that this particular application is only about 20% secured. Bailey stated that she would like to have this business come back at the end of the semester and report how things are going before they approve the application. Champion agreed, reiterating her concerns about the business losses. Magaraci stated that she is working with her accountant on these matters. Bailey again suggested that they revisit this application in May or June. Hayek stated that he would entertain a smaller amount, but that he questions the full $50,000 at this time. Economic Development Committee Meeting January 15, 2008 Page 2 DOWNTOWN STUDY. NEXT STEPS: Ford referred the committee to her January 3 memo regarding the downtown market niche study with the status of activity and recommended next steps. There is a general consensus that they need to talk to members of the business community to get their opinions on how to enhance the downtown. Ford stated that she spoke recently with Craig Gustaveson of the Downtown Association and Nancy Quellhorst of the Chamber, and in talking with them, it was proposed that they also reach outside of the downtown community and get opinions from business leaders who are outside of the downtown area. Ford noted that Quellhorst was planning to speak with some business leaders last week, but that due to schedules, they have not yet been able to discuss her findings. Ford suggested that they divide the list of business leaders and have several staff meet with them to get their opinions on the study, to educate them about the findings of the study, and the benefits are of putting a business development person to work downtown. Davidson stated that he believes they have a fairly good handle on what needs to be done at this point. Davidson stated that the big issue is "how" to go about promoting the idea to business leaders and developers. Gustaveson then added that he often hears conflicting sentiments, including, "I don't want the City dictating to us what we're doing with our downtown," and yet other people complain, "Why isn't the City doing more," such as when Old Capitol was empty. He stated that there needs to be a good balance with City's involvement, at least perception -wise to the downtown merchants. Adding to the urgency of getting this off the ground, he said he learned recently a visiting team to the U of I, which has always stayed at the Sheraton, is now going out to the Marriott in Coralville. It's important because it's a team full of people who aren't going to be spending those dollars downtown now. This is why we need to compete for business downtown. Bailey stated that in talking with others, she has found that the concept of a "downtown manager" is not strongly embraced. She asked Gustaveson for some clarification on this issue, and he stated that he believes there is a lot of misinformation about just what the position entails. He believes they need to convey to people that the person is not going to dictate how they run their business, how many hours they must be open, etc., but that this is work focused on bringing new business and enhancing the mix of business in the downtown market. Bailey noted that this was a concern during the SSMID campaign a few years ago, as well. Gustaveson added that having a job description up front could help to further educate the community on having a business development manager in the downtown area. There was concurrence that calling it a business development manager would be more descriptive of the work. The discussion continued, with Gustaveson stating that he believes businesses don't necessarily understand that a more vibrant downtown is possible, especially by adding some major retail businesses and enhancing the mix of businesses. Davidson stated that education would be helpful in this, and that they need to convey that they are not trying to create a "mall" downtown. Champion stated that she believes that a lot of businesses downtown, which are already successful, don't want to change anything. Hayek noted that he has heard people say they don't want to fund another $100,000 a year position. This led to a discussion about the concept of a manager and what the position will bring to the downtown community. Davidson then added that he believes a big factor in this issue is that in many towns, all of the extra features —such as festivals, skating rinks, etc. — are funded by the private sector. People forget that in Iowa City, they are funded by the public sector — the City. He believes people are used to the City paying for amenities like these. Gustaveson suggested they find some communities similar to Iowa City, and find out how they handle these issues with their downtowns. He noted that with their limited budget, the Downtown Association could only do so much. The discussion continued, with Bailey stating they should look at the timeline Ford laid out in her memo. Ford stated they need help presenting this concept to the business leaders. Davidson asked Gustaveson if he could suggest some Economic Development Committee Meeting January 15, 2008 Page 3 volunteers through the DTA and the Chamber who could help with this project. Davidson said that he and Ford would work on setting up some one-on-one meetings, and begin to move forward. The discussion turned to issues of snow removal and panhandling downtown. Gustaveson noted that the DTA and several business owners would be at the Council meeting that night to present a letter regarding snow removal. He further stated that many businesses are fed up with the panhandling issue, and that customers tend to avoid stores where these people hang out. Bailey reiterated the plan — to begin some one-on-one meetings, to compile a list of responsibilities — and noted that she believes it's quite an aggressive timeline. Davidson and Ford noted that they understand this and have discussed this further, deciding to move the timeline out a few weeks. 2007 ANNUAL ECONOMIC DEVELOPMENT REPORT: Ford noted that committee members have an annual report in their packets. Davidson noted that this is a 2007-2008 report, showing what has been accomplished and what is planned for the coming year, and he asked if the Committee had any direction for them. Ford stated that they would be putting together strategies for 2009-2010 in the fall. Champion asked if they could review this at the next meeting, as she has not had time to review it. It was decided to table this item to the February 19, 2008 meeting. MEMORANDUM OF UNDERSTANDING WITH IOWA CITY AREA DEVELOPMENT GROUP:. Joe Raso, ICAD Group president gave an overview of the agreement which outlines the services the City may expect from ICAD Group for fiscal year 2008. A brief discussion ensued, with committee members stating their approval of the Memorandum of Understanding as presented. Champion moved to recommend that the Memorandum of Understanding with Iowa City Area Development Group (ICAD) be approved by the City Manager's office, seconded by Bailey. Carried 3-0. STAFF TIME: None. COMMITTEE TIME: It was decided that Economic Development Committee meetings would be held the third Tuesday of each month at 8:00 A.M. at City Hall. Next meeting is scheduled for: February 19, 2008 at 8:00 A.M. ADJOURNMENT: Hayek moved to adjourn the meeting at 9:29 A.M rn c a) a) a� E E O U c a) E n. O N N 0 U E O c U w co 0 0 N LO T aD c m O0 �o =o m N .O c Q x x x n: wo W H T N O T o 0 T N O .= 0 0 T N O 0 w Z COCU cn a) w c O .Q t U •� U N _ a) rn U W c N N �.04 a Q n w Y x 0 0 r -=V , CITY OF IOWA CITY MEMORANDUM Date: February 13, 2008 To: Economic Development Committee From: Wendy Ford - Re: Downtown Market Niche Analysis Study — post -study status report Since the January 15 Economic Development Committee meeting, Ford and Mayor Bailey have made several one-on-one visits with downtown business owners and have several scheduled for the coming weeks. Nancy Quellhorst, Iowa City Area Chamber President and Craig Gustaveson, Downtown Association President and other members of the Economic Development Committee are also meeting individually with business owners to determine interest in an enthusiasm for a downtown business development manager, funding sources for the activities, and the optimal way to implement the activities. Also at the January 15 meeting, the committee desired information on other communities with downtown business development activities. The following memo and information was compiled by Miles Shultz, Economic Development Division intern and provides an overview of a handful of communities similar to Iowa City and their downtown development organizations. The time table below was revised after the January 15 Economic Development Committee meeting to add four weeks to the schedule. To date, we are on schedule. By this date Accomplish these activities January 31, 2008 1. Committee members meet one-on-one with opinion leaders from outside downtown area to get "pulse" and discover potential investors in partnership. 2. Committee members convene to a. refine talking points, if needed b. assign and split list of opinion leaders from within downtown area to talk to. February 29, 2008 1. Committee members convene to share insight gained 2. Committee members meet one-on-one with opinion leaders from within the downtown area to get "pulse" and discover potential investors in partnership. March 30, 2008 1. Set public meeting and invite those who have expressed interest in either guiding activities to enhance downtown or who have indicated they would be interested in funding 2. Set up account through Johnson County Foundation. Downtown business partnership organized. April 30, 2008 1. Operating guideline developed. 2. Strategic priorities identified. 3. Secure financial investments. 4. Elect leadership. 5. Secure rent-free office space. 6. Advertise for downtown manager position May 30, 2008 1. Staff hired. 2. Work plan developed. 3. Committees formed. CITY OF IOWA CITY MEMORANDUM TO: WENDY FORD, and ECONOMIC DEVELOPMENT COMMITTEE FROM: MILES SHULTZ, ECONOMIC DEVELOPMENT DIVISION INTERN DATE: FEBRUARY 19, 2008 RE: BUSINESS IMPROVEMENT DISTRICTS IN COMPARABLE CITIES The following are comparable cities to Iowa City that have established Business Improvement Districts, "BID," or something similar. The one similarity is that the impetus for their formation came mainly from the private sector. While East Lansing provides city staff, the other cities have essentially private BID organizations, with independent budgets and staff. Nationwide there are over 1,200 BIDS located in every state. Boulder, CO: • Established in 1984, consists of a partnership between the city and Downtown Boulder Incorporated. • BID's maintenance services include: trash removal, graffiti removal, event production, and general downtown security. The Downtown Boulder Street Team also performs a daily walk through of the BID, "addressing all issues and taking note of possible improvements." • BID's economic development services include: marketing, information and research, event production, and various initiatives to promote a vibrant mix of tenants. • DBI membership is voluntary and open to any interested persons and organizations. Membership costs $75 for an individual and $125 for a business. • Staff of 8. Lincoln, NE: • Established in 1978, and then two more BIDS formed in 1989. • The Downtown Lincoln Association is an umbrella organization that manages all three BIDS. • DLA's services include: daily trash removal, weekly sidewalk cleaning, landscape maintenance, tree and shrub replacement, handicap ramp snow removal, holiday decorating, and miscellaneous trouble -shooting, as well as a plethora of managerial and promotional activities. Madison, WI: • BID formed by a nonprofit, Downtown Madison, Inc., and BID staff are DMI employees. • Started in 2000 with a budget of $242,000, but this has increased to around $350,000, although from their website it seems that the city has a lot of control over the BID's Board and budget. -1- • Top Priorities: business retention, expansion and recruitment; and marketing the district to consumers • 224 properties with 335 businesses (1/3 Retail, 1/3 Food Service, 1/3 Service Orientated). • 17 board members and 2 staff. Austin, TX: • Formed in 1989 with both city staff and the downtown commission, but then private sector took the lead. • In 1993, the budget was $424,000, and this year it is $2.2 million. Stillwater, OK: Established 8/2007 at the behest of downtown property owners. The City is currently employing BID staff but is looking for a BID coordinator funded by the both the city and downtown businesses. General duties for the BID coordinator will include: serve as a liaison between the city, BID Board, property owners and Oklahoma State University; find merchants for vacancies; marketing strategy for the downtown. East Lansing, MI: • Established in 1997 (actually is a "Principal Shopping District") by both the private and public sector. • Only has a $50,000 budget, and staff is provided by the city. • They also have a TIF district established in 1989 with an operating budget of $1 million. Columbia, MO: • Established in the late 1960's at the request of the private sector "We have a staff of 4—a director, assistant director and two part time maintenance people. I would never recommend establishing a district without staff or without a steady and predictable revenue stream." encl/ Downtown Boulder Incorporated Brochure, and Downtown Lincoln Association Brochure -2- Benefits of Membership Parking Validation Program Assistance Advertising and Promotional Opportunities Educational Workshops and Mailings Free Yearly Downtown Mailing Labels Current Information on Downtown Events and Issues Participation in Downtown Boulder Gift Card Program Assistance and Consulting from Experienced Downtown Businesses Networking and Social Events Downtown Directory and Decal Forum for a Unified "Voice" in Downtown Boulder 11 io 11 DO"TO" Boulder Downtown Boulder, Incorporated is a non-profit organintson dedicated to the promotion and preservation of downtown as the heart of the community. We work to maintain downtown as the center of commerce, government, culture, and leisure. Our over Soo DBI members support the overall vitality of downtown through public advocacy, political involvement, and community events that enhance the Boulder experience for residents and visitors. Our downtown is historic, inviting, eclectic, and vibrant. We strive to build upon these unique qualities that make this area such an important factor in Boulder's quality of life. Downtown Boulder, Inc. 1942 Broadway Suite Sot Boulder, CO 8o3o2 303.4493774 Downtown Boulder, Incorporated With the most successful pedestrian mall in the country, historic Downtown Boulder is a statewide treasure. Like all treasures, however, Downtown Boulder requires constant care and protection. Members of Downtown Boulder, Incorporated (DBI) are dedicated to the continued preser- vation and enhancement of Downtown Boulder as the heart of the greater Boulder community. We urge you to join us. Membership Membership in Downtown Boulder, Incorporated is voluntary and open to any interested person or organization. Our current membership ofover Soo reflects a wide variety of property owners, business professionals, retailers, and restaurateurs. DBI is guided by our dedicated Board of Directors, who represent the following local businesses: Art Source International Liquor Mart Belvedere Belgium PEH Architects Chocolates Pedestrian Shops Boulder County Farmers Market P.N. Eklund Interests, Inc. Colorado Daily Richard Pendleton & Associates Communication Arts Rock Bottom Breweries Creative Growth Seminars RRC Associates Deneuve Construction Vectra Bank g Days a Week Waters Read First National Bank of Colorado Wells Fargo Bank James Travel Points IVA Incorporated Nature Conservancy Law Office of M ary Nagle Street DOWNTOWN Boulder DBI Membership registration form I: 7.7u Business Name _— Contact Name Phone _ Fax_ Email . Website Please write or attach a 4o word description of your business for the membership directory and Downtown Boulder Website. Include my business in the gift card program. Type of Membership (please check one): ❑ Business Member: $tay ❑ Individual Member: S75 (Name only, no business name or description) ❑ 501(03 Member: Complimentary Please fill out form, tear off and send with payment to: Downtown Boulder, Inc. 1942 Broadway, Suite Sot Boulder, CO 80302 303,449-3774 w'w'w.boulderdownt.wn.com DBI Has the Facts Take advantage of numerous reports, surveys, event demographics, and sales tax figures, all available through DBI. DBI Successes DBI facilitated the approval w create r3oo new public parking spaces in building the 1Sth & Pearl and St. Julien parking structures. DBI spearheaded the Downtown Boulder Parking Initiative, salting in the replacement of parking meters with visitor friendly Parking Pay Stations. DBI initiated the Downtown Bus Pass, which grew into the ECO.Pass program and current RTD shuttles in Boulder. DBI worked exhaustively to pass the Downtown Boulder Business Improvement District wh kh launched marketing campaigns to promote shopping, dining and leasing, as well as funds for security, maintenance, improvements, and economic development. DBI continues to partner with the City of Boulder Downtown Management Commission and Downtown Boulder Business Improve. ment District to provide input and support for physical improvements to the Pearl Street Mall and surrounding businessndghborhoods. DBI coordinated the development of wireless internet connections for the Pearl Street Mall. DBI advocated for Downtown issues such as the aggressive panhandling ordinance, for retaining Downtown neighborhood schools. Downtown convention center, and support of pro -lb smn candidates in city government DBI lobbied aggressively to build a new Downtown hotel, which exulted In the approval and consauctbn of th<st. Julien Hofel at qth and Canyon. DBI closely monitored construction during the renovation of Broadway and encouraged the City of Boulder to offer incentives to the contractor so that the work was finished on a timely basis. DBI worked very closely with the developers and owners of agth Street to ensure the two shopping districts would complement each other's offerings and experiences. DBI strongly encouraged the opening of, yea round Downtown V isitor Information Center which served over Count, customers in the first 3 months of full time operation. DBI Special Events Bands on the Bricks: The region most popular summer concert series happens Wednesday nights in lone, July and August, with the are,*, honest bands performing in front ofthe Boulder County Courthouse ArtFair: Downtown's oW,,t,nd most prestigious event draws 15o,oco people the third weekend in July. This event attracts over i5o talented artists from Boulder and around the country. Boulder Fall Festival: Boulder', Oktaberkst katures Festival food, top area inkrobrews, great local bands, an art fair, and children's carnival rides. This is one of goulder's most popular events. Lights of December Parade: The Lights of December Parade is a hometown community celebration complete with "lighted Boats," marching bards, hone drawn carriages, nrokn, children dressed as reindeer, and the arrival of Santa Claus. Other Activities: DBI sponsors: a golftoumament to benefit the Kid Links program at Boulder Community Hospital; Munchkin Masquerade; Switch on the Holidays lighung ceremony; President's Day Sale; Noon Tunes; August Sidewalk Sale; Annual Downtown Awards Luncheon; and Monthly Downtown Community Exchanges. Downtown Boulder gift cards are accepted at over i5o downtown businesses. The cards make wonderful gifts and employee incentives, and are a great way to bring more customers to your establishment. Over Stoo,000 in Downtown Gift Cards are sold annually. MAKE SURE YOUR BUSINESS IS NOT LEFT OUT. "DBI gift cards stand for `Driving Business In.' They bring in incremental revenue at zero cost and virtually no effort on our part. This is a great way to introduce new customers to your business," —Jack Stoakes, General Manager, Liquor Mart I 4 s 3 E Rg 8 4 3it 1 W �yy gg -i.s li5i .03 n IL 5 9 B g 8 w !� ss `� 3 N s N a a • � m � � � � -0 p^ � l S � � -0cC obi ` 4gg y ` � � � � � 8 Y I� H e " 3 5 g '� � 3t A' .$ 3 a 6 yc � mg,o so�ti5 a r� nrS��O ��'m fill �3 A Jill ®& E No W'r�d W �M ' s�ppppsuy�y vqM W suv,11M � aid N � 4 2 gLSn S a5 gs.m c8^' a° Y 0 � $mmm$48��a�S.g��i3;5e9 ❑ E � E S° 5 `c m 5 0' � � b � c ~ � A � A 3 w w� �m w � s M $ 6 $ `o � g IOWA 0000 AREi 00OF ENv1 S I N FEBRUARY 2008 www.lowacityarea.com MUDDY CREEK? k e 7 On this late January day, Muddy Creek in Coral looks more like icy creek with a thick layer of ice and a blanket of snow. Spring is only six weeks away! I„ BUSINESS -FRIENDLY CITIES What's the use? BY WENDY FORD, ECONOMIC DEVELOPMENT COORDINATOR, CITY OF IOWA CITY IW wendy-ford@iowa-city.org Turns out this might be the best question you can ask yourself ifyou are in business.Though it might sound tongue in cheek, if you own or lease land or if you want to own or lease land for your business, your next question should be, "What uses are permitted on the land?" 1 You'll find the answer in the zoning code. Zoning codes are laws that exist for the greater good of the community. The laws protect 'rye citizens and property values, and provide for the orderly arrangement and growth of the community. Some might argue they infringe on personal freedoms, but among other things, these laws prohibit hog lots in your neighbor's back yard; they limit the lumens that parking lot lights can beam in your bedroom window and they ensure that the bakery on the comer won't become a gas station. If you want to open or move a business, it is best to first determine where your business may locate before purchasing or leasing property. If you want to sell or lease your 5property, you need to know what uses are f permitted on the lot to expedite the process. To do that, you can either talk to the friendly ii staff at City Hall or you can look it up in the Zoning Code yourself at City Hall, the Iowa City Public Library or online atwwwicgov.org/ housing/zoning/. To determine the land uses allowed on your property you must first locate your property on the City's most current zoning map. The zoning map shows the base zone that applies to your property. Then, look in the Zoning Code for the corresponding regulations for that base zone. In each base zone chapter of the code there is a handy table listing permitted land use categories, uses permitted with provisions or allowed only if a special exception is granted by the Board of Adjustment. To allow for orderly growth, to bridge old laws with updated ones and to simplify regulations, the zoning code classifies land uses into broad categories. For example, in the table of uses allowed in the Community Commercial (CC-2) Zone, you will find the category "Retail Uses" under which "Sales - Oriented Retail Uses," "Repair Oriented," and "Outdoor Storage and Display" and others are also subgroups. You can then determine to which subgroup your business belongs. Since all similar uses are subject to the same zoning standards (parking, lighting, landscaping, etc.), it is relatively easy for one retail business to convert to another retail business over time. We encourage you to talk with City staff or check the use classification chapter of the zoning code if you have any question about which broa category your business falls under. What's the use? continued on page vii CORRIDOR LOBBYING Members key to legislative success BY REBECCA NEADES, VICE PRESIDENT &DIRECTOR, PUBLIC POLICY rneades@iowacityarea.com Legislatively, February is a busy month with several opportunities for members to support the Iowa City Area Chamber of Commerce mission: activelyfostera better business environment." On February 11 the Area Chamber will host the federal lobby- ing trip to Washington, D•C•, nction Rebecca Neades with th ident, Director of Area C resent MAKE A DII organ What's the use? continued from page 1 mem and The base zone chapters of the code also key contain dimensional standards, such as minimum lot size, building setback rec requirements and height limitations. If your Co property has unique characteristics making it In difficult to comply with zoning rules, the Board th of Adjustment has the power to adjust some C of the rules by granting a special exception. Check with City staffifyour property presents a particular challenge to see if a special exception might be a possibility. Our advice is to learn the uses allowed on your property and learn how changes of use will affect conformance on your lot. When you know this about the lot you own or lease, or about the lot you would like to own or lease, you'll be ahead of the game. For Iowa City zoning code questions, talk to Jann Ream, code enforcement officer at (319) 356-5120. For other business questions, call Wendy Ford, economic development coordinator at (319) 356-5248 C Ior SE Net alvill e Bui 4:00 over Wa & Confer .1owacity 1 as it be( Corrldor tobbying con 637 to regis