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HomeMy WebLinkAbout02-15-2011 Council Economic Development CommitteeAGENDA City of Iowa City City Council Economic Development Committee Tuesday, February 15, 2011 8:00 a.m. Lobby Conference Room City Hall 1. Call to Order 2. Consider approval of the December 21, 2010 Economic Development Committee meeting minutes 3. Consider a recommendation to the City Council for administrative authority for disbursement of Economic Development Opportunity Funds 4. Staff time 5. Committee time 6. Adjournment draft MINUTES CITY COUNCIL ECONOMIC DEVELOPMENT COMMITTEE DECEMBER 21, 2010 LOBBY CONFERENCE ROOM, 8:00 A.M. Members Present: Regenia Bailey, Matt Hayek Members Absent: Susan Mims Staff Present: Wendy Ford, Jeff Davidson, Tracy Hightshoe, Tom Markus Others Present: Gigi Wood RECOMMENDATIONS TO COUNCIL: Hayek moved that a recommendation be sent for City Council's approval regarding the P-C location/parking agreement. Bailey seconded the motion. Motion carried 2-0. Mims absent. CALL MEETING TO ORDER: The meeting was called to order by Chairperson Bailey at 8:02 A.M. CONSIDER APPROVAL OF THE MINUTES OF THE NOVEMBER 8. 2010 ECONOMIC DEVELOPMENT COMMITTEE MEETING: Ford noted that there is one small amendment. Davidson was in attendance at the November 8 meeting and the minutes should reflect this. Hayek moved to accept the November 8, 2010, meeting minutes as amended. Bailey seconded the motion. Motion carried 2-0. Mims absent. CONFIRMATION OF THE CITY MANAgER'S LETTER REGARDING THE PC LOCATION DECISION: Davidson spoke to Members regarding this issue. He noted that in keeping with Council's policy directive to bring offices downtown, the City worked with the developer in being able to provide parking permits for this project. The parking would involve subsidizing, however, at around $7,200 per year for a two-year period which equate to approximately 25% of the cost of the parking permits for the two years The Press Citizen would be paying the balance of 75%. He further explained the possible agreement, noting that the Press -Citizen will be bringing 40 to 50 well -paying jobs to this location. Hayek moved that a recommendation be sent for City Council's approval regarding the P-C location/parking agreement. Bailey seconded the motion. Motion carried 2-0. Mims absent. Economic Development Committee Meeting December 21, 2010 DISCUSS ADMINISTRATIVE APPROVAL OF ECONOMIC DEVELOPMENT OPPORTUNITY FUND REQUESTS: Ford addressed Members gauge their desire to grant the City Manager authority to approve the use of Economic Development Opportunity funds. She noted that allowing this authority would enable the City to respond in timely fashion to requests that come in that meet certain criteria. Davidson noted that staff does not currently have a proposal drafted, but that they are asking for whether the Committee would like to consider the idea. Hayek stated that he is supportive of this idea. Bailey added that she would like to see some type of general guidelines on this. A brief discussion ensued, citing possible criteria including a dollar amount cap, a percentage of the fund cap, along with alignment of economic development goals as ideas for the parameters for the City Manager's authority. Members agreed they would like to see a proposal at the next Economic Development Committee meeting. CDBG ECONOMIC DEVELOPMENT FUND REPORT: Hightshoe addressed the Members regarding CDBG funds, giving a brief background on the program. Currently there is approximately $147,000 available for eligible businesses. On July 1 this amount will increase by $100,000, according to Hightshoe, when the annual entitlement deposit is made. Since 2002 there have been about 40 applications, with funding going to 17 of those. Noting that the fund doesn't necessarily target this population, she stated that ten of the 17, were either women- or minority - owned businesses. The discussion continued with Hightshoe sharing several success stories with Members. STAFF TIME: Davidson reminded Members that during the budget process it will be up to the Council to fund the economic development opportunities fund. Ford added that the actual line item in the budget is "Economic Development Assistance." Davidson also noted that the Corridor Business Journal is having their `Economic Trends' luncheon on January 12. COMMITTEE TIME: None. ADJOURNMENT: Hayek moved to adjourn the meeting at 8:30 A.M. Bailey seconded the motion. Motion carried 2-0. Economic Development Committee Meeting December 21, 2010 Council Economic Development Committee ATTENDANCE RECORD 2010 TERM w w .tom cn rn co co NAME EXP. N o N j rn N o � Cn cn w -- rNv -L co N N Regeni 01/02/1 X X X X X X X X X X a Bailey 1 Matt 01/02/1 X X X X X X X X X X Hayek 1 Susan 01/02/1 X X X X x x x O/ X O/ Mims 1 E E Key: X = Present O = Absent O/E = Absent/Excused r ��h®Ir„ CITY OF IOWA CITY MEMORANDUM To: Economic Development Committee From: Wendy Ford Date: February 11, 2011 Re: Agenda item #3 Economic Development Funds Administrative Authority Staff is proposing a recommendation that the City Manager be granted administrative authority to make disbursements from the Economic Development Opportunity fund without first having to get approval from the Economic Development Committee. This will allow staff to move expediently when we are working with a private sector client. With that authority, the following three stipulations would apply: • There be a $50,000 limit (which is congruent with consultant agreement limits for which the City Manager has administrative approval to spend without City Council approval), • that the use align directly with City Council's adopted Economic Development policies and strategies, and • that reporting the use of any of the funds will occur at the first Economic Development Committee meeting following such disbursement, and again in an annual report. We feel there are two compelling reasons to adopt this proposal. 1. Council has approved budget authority for $100,000 in Economic Development Opportunity funds every other year. In the past four years, the fund has been used for matching funds for state grants awarded to new businesses in Iowa City and to provide a competitive incentive to an office user relocating to downtown. There is currently a balance of $85,000 in the fund. 2. Your committee also reviews, revises and recommends the Iowa City Economic Development Strategies and Policies approximately biennially to the City Council for adoption. In that plan are stated goals and objectives for an overall mission of achieving a vibrant local economy. Because the budget authority and the policies and strategies for economic development are in place, we feel that providing administrative authority to the City Manager will allow the City to be more responsive to the business community when time is of the essence. As you will recall, the stated economic development policies in the 2009-2010 plan are as follows: February 11, 2011 Page 2 1. Diversify and increase the property tax base by a) encouraging the retention and expansion of existing industry and b) attracting industries that have growth potential and are compatible with existing businesses and industries. 2. Develop available labor force consistent with the needs of employment opportunities. 3. Provide and protect areas suitable for future industrial and commercial development. 4. Continue to cooperate with existing local and regional organizations to promote economic development within Iowa City. 5. Improve the environmental and economic health of the community through the efficient use of resources. 6. Consider financial incentives and programs to facilitate achieving the above. The four objectives of the 2009-2010 plan are as follows: 1. Foster the retention and expansion of interstate commercel existing business and attract new business to Iowa City. 2. Support the Development of Downtown to ensure a healthy mix of retail, services, entertainment, office, residential, lodging, and nightlife 3. Assist in the development of Entrepreneurial Businesses in Iowa City 4. Work to improve the safety and attractiveness of business neighborhoods to a) maintain our ability to attract and keep businesses and b) keep the workforce safe. Please be ready to discuss this recommendation to the City Council at your meeting on the 15th. If you have any questions in the meantime, feel free to call or email. i' s: ZI He ingbusinesses take root �� 1�ilendy Ford, economic develolxnent coordinator, city of lo«ta City phone: (319) 356b2A8 Email: Wendy ford@iowa•city:org 0 ur goals in economic develop- manufacturing companies from around ment for Iowa City are simple: the globe. Get more good jobs, attract in- While we covet the first mover into vestment, increase dollars circulating " the new campus, we are also busy in the local economy, build the tax base working on another exciting project de and fertilize the landscape for starting signed to spawn startup companies by and growing business. creating space, resources and a culture % 1,11 My role in the local economic devel- of innovation for those with a business opment theater involves mathematics, idea, a plan or even a hunch. marketing and sometimes a little magic. Borne of the idea that business The math is simple., we wantlo add incubators have a good record for s � . more jobs to the market and boost the growing and rooting business in their average wage of Johnson County em- communities, the co -working concept ployees. While we're happy when any is an evolutionary step up to building new job comes into the market, we're new business foundations,'. Rather than more interested in assisting companies isolation -style incubation, a Co -working grow or locate here if their average facility has a social basis meant to fos- hourly wages top $18 or better. ter the sharing of ideas, the building of Businesses that invest in Iowa City networks and achieving a'critical mass help build the commercial tax base. of new knowledge in an open format. When they also offer good paying jobs, Encompassing both goals of ensuring. they may be.eligiblefor incentives to the physical environment and building close the financial gap and make the de- a culture of innovation, the city also t velopment happen. is working closely with stakeholders Together with city staff, a chorusof downtown to ensure that changes re - Iowa City area organizations market sulting from the new 21.-only ordinance the area, work toward diversifying the business A, In any ;given economic development climate there, as well. The outlook is k� s initiative, you may find one, two or exciting, all of the voices of the Iowa City Area What you can continue to expect: - Development Group ([CAD), the Iowa Iowa City will endeavor to attract, City Area Chamber of Commerce, the recruit, retain and foster development s Convention and Visitors Bureau and which is new to our region. We will the University: of Iowa singing the refrain from recruiting business E praises of our highly educated work from other towns in our metropolitan force, our hip and snappy places to live, statistical area (MSA), and if those i our cosniopolitan lifestyle in our laid businesses come to us, we will let our back Midwestern town and the amazing neighbors know those businesses are resources of Kirkwood Community Col- looking. lege and the U[ — as you might expect. When we use incentive programs, What you might not expect is what they will maximize benefits to the city sets Iowa City apart — the magic.' We of Iowa City. The dollar amount and the r are prepared. We are creating a physi duration of incentives will be the `small - cal environment and building a culture est amount necessary to achieve the ofinnovation that we expect to pay maximum benefit. big dividends in the near fixture. Just To do the best for our community as the Economy began to falter three and the businesses We hope to attract, years ago, the city purchased 173 acres we aspire to be nimble and quick with ;t 2 of industrial land and is now comp let our service to the companies and ` ing infrastructure improvements and transparent with the community in the f �' attracting the interest of wind energy process. �i t: