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HomeMy WebLinkAboutEcoDev 12.1.15AGENDA City Council Economic Development Committee Tuesday, December 1, 2015 12:00 p.m. City Manager’s Conference Room City Hall 1. Call to Order 2. Consider approval of minutes from the March 30, 2015 Economic Development Committee meeting 3. Consider request for funding Riverside theater; $16,500 4. Consider request for financial assistance for Little Village move to Riverfront Crossings office; $7,908 5. Consider request for funding Creative Corridor Request; $10,000 6. Staff report 7. Committee time 8. Other business 9. Adjournment EDC March 30, 2015 1 Preliminary MINUTES CITY COUNCIL ECONOMIC DEVELOPMENT COMMITTEE MARCH 30, 2015 CITY MANAGER’S CONFERENCE ROOM, CITY HALL, 12:00 P.M. Members Present: Susan Mims, Michelle Payne, Matt Hayek Staff Present: Tom Markus, Tracy Hightshoe, Jeff Davidson, Eleanor Dilkes, John Yapp, Others Present: Michal Eynon-Lynch (Pear Deck), Julie Zielenski (EDC), Mitchell Schmidt (Gazette), Amanda West (Entrefest), Curt Nelson (EDC) RECOMMENDATIONS TO COUNCIL: Payne moved to recommend the request to the full City Council for annual assistance of $25,000 per year to EDC, Inc., prorated for this year, for a three-year period. Hayek seconded the motion. The motion carried 3-0. Hayek moved to approve the request from Entrefest for a sponsorship of $10,000. Payne seconded the motion. The motion carried 3-0. CALL MEETING TO ORDER: The meeting was called to order by Chairperson Mims at 12:03 P.M. She first asked those present to identify themselves. CONSIDER APPROVAL OF MINUTES: Minutes of the January 12, 2015, were reviewed. Payne moved to approve the minutes as presented. Hayek seconded the motion. The motion carried 3-0. FY15 BUDGET LINE ITEMS REPORT: Economic Development Assistance: Jeff Davidson provided an update for Members, noting that Wendy Ford had been called away but may join them later in the meeting. Continuing, Davidson noted that staff wanted to review the two budgeted line items that they currently have for assistance with economic development projects – one category is community development assistance and the other is economic development assistance. He further explained how the City has used these avenues of assistance in the past, as well as the continued commitments that are part of each year’s budget. Davidson further explained the various funds to Members, noting that there is a current balance of $132,866, and that today’s requests will both come out of this fund, if approved. Mims asked if they should be giving consideration to increasing the $100,000 line item for economic development assistance. Markus stated that he likes to have a fairly tight leash, for both the Council and himself, when it comes to this fund. He added that they can always amend it, if needed, but that he would prefer not to increase it at this time. CONSIDER A REQUEST FROM EDC FOR ANNUAL ASSISTANCE OF $25,000: EDC March 30, 2015 2 Preliminary Davidson noted that representatives from both Pear Deck and EDC are present today. He talked about the history of EDC and how things have progressed through the years, to the point where ICAD speaks highly of the relationship and the value they offer. Davidson noted that staff does believe that they are at the point where it would be worthwhile for the City to be involved in providing some funding to EDC. The current request is for $25,000, and staff is suggesting that this be pro-rated for the current fiscal year and then for the following two years that the City fund this at $25,000 per year. Davidson noted that Pear Deck is a great example of what has come out of EDC’s efforts. He added that in providing funding, Iowa City would join ICAD, the U of I Small Business Development Center, and the Chamber of Commerce, to name a few, in these entrepreneurial efforts. At this point Curt Nelson with EDC spoke to Members. He spoke to the founding of EDC in 2003 when he was on the Cedar Rapids Chamber of Commerce Board. After researching various types of accelerator/incubator programs across the country, Nelson came back to the Chamber of Commerce with a request for $500,000 to seed the program. EDC was created as a corridor or regional organization, and according to Nelson it has become a statewide organization, as well as one of the top programs of its type in the country. Nelson suggested that they think of the EDC as a consulting group for these start-ups they mentor. Nelson then introduced others from EDC, noting their roles within the organization. Nelson continued, speaking to how they can help the small businesses they deal with in the incubator program. He stated that they are only able to work with about 40 businesses at a time, given their current staffing and resources. Nelson stated that whenever these organizations have a need, the EDC is there for them. He talked about partnerships they have throughout the corridor, including the John Pappajohn Centers, the Chambers, and other such organizations in the state. Nelson also spoke to how the EDC generates a portion of their income each year for services rendered to companies such as Rockwell Collins and Apache Hose and Belting. Michal Eynon-Lynch with Pear Deck spoke next, stating that they are based out of the CoLab space. This is their second education-based tech company, having started Active Grade in 2010. She noted that being former teachers, the group had no idea what they needed to do when they began their first company. Eynon-Lynch stated that in working with EDC, they have learned how to access State funding and grants and have been successful in working through the contract process. She added that the EDC’s support is invaluable. Nelson then introduced some others in attendance, including John Slump and Jerry Garfield, who started Corvida Medical. He noted briefly that the pair invented a medical device to be used for the transfer of chemotherapy drugs. There is now about $8 million in this business and the product was submitted to the FDA at the beginning of March of this year. He added that the ‘med tech’ industry is growing quickly. He then shared EDC’s five-year plan. Davidson noted that the staff is recommending approval to the full City Council for the requested amount, to be pro-rated for this year, and to fund the full $25,000 in FY16 and recommend budgeting a placeholder for $25,000 for FY17. Markus suggested it be conditioned upon Nelson and his team coming back before the third year to report out accomplishments. Markus asked what the annual $25,000 request is based on. Nelson stated that it is relative to the amount of money and time that is being invested in this area. He added that he would have asked for $50,000, but believes they should start small. He hopes to be granted $25,000 from Johnson County, too. Nelson noted that they will come to the City Council yearly with a ‘report card’ of accomplishments on the past year – how much capital was raised in Iowa City, how much work was done in Iowa City itself. Markus spoke further to what he is trying to do here, noting that it would be helpful for the City to have some type of ‘predictors’ to look at, to measure those against what has actually taken place during the year. Nelson stated that this should not be a problem and that he would be happy to supply this information. EDC March 30, 2015 3 Preliminary Mims stated that it sounds like EDC is working with an interesting array of businesses, and that she agrees with Markus’ request for yearly measures. She added that she would definitely be supportive of this request. Hayek stated that he is also. He asked if EDC plans to continue to office out of the CoLab. Nelson stated that they do, that it has worked out very well for them. Markus spoke again to the work that EDC does, noting that he believes it makes sense for the City to fund this three-year request. Mims spoke to this type of economic development work, asking in general what else could they be doing to help promote entrepreneurship with lower socioeconomic and/or minority communities, within the Iowa City community. She asked what type of programming and outreach they could do to help those who are not finding the traditional-type of blue collar jobs any longer. Markus stated that the issue of school boundaries plays into this same argument, regarding opportunities for their population. Payne moved to recommend the request to the full City Council for annual assistance of $25,000 per year to EDC, Inc., prorated for this year, for a three-year period. Hayek seconded the motion. The motion carried 3-0. CONSIDER A REQUEST TO UNDERWRITE ENTREFEST SPONSORSHIP OF $10,000: Davidson noted that Members have a letter in their meeting packets from Amanda West, regarding Entrefest’s request. He added that staff feels very positively about Entrefest and that past participation has reflected this. One of the things staff is attempting to do is to keep Entrefest in Iowa City and to grow the event. Davidson stated that the request is for $10,000 and that this can be budgeted through the economic development assistance fund. Mims stated that the growth is impressive. She added that she likes the idea of trying to keep the festival here, and the coordination between Iowa City and the University is a positive for that. Hayek asked West how many venues they will be occupying during this fest. She responded that it is growing this year already. They will be in the Sheraton, the hotel Vetro, the Library, the Englert, Film Scene, and they have also had offers from McGladry, Midwest One, Beadology, and Eden, as well as Clinton Street Social Club. Davidson stated that having the event in so many venues is a win for downtown and makes it a better event overall. West added that they believe Iowa City is perfect for this type of event, mainly due to how the downtown is structured. She stated that the attendees last year stated that they really enjoyed being able to go outside and go from place to place, and that the ‘human scale’ set-up of downtown makes it the perfect spot. Hayek moved to approve the request from Entrefest for a sponsorship of $10,000. Payne seconded the motion. The motion carried 3-0. STAFF UPDATES: Telepharm parking incentive – Davidson noted that this will be their third parking arrangement that has been successful in attracting or expanding business downtown. The Press-Citizen was the first, and MetaCommunications the second. He noted that currently Telepharm has four employees, with plans to ramp up to 10. In order to remain in downtown Iowa City, they have asked for assistance with parking as they attempt to grow their business. Davidson noted that Telepharm was provided four half-price parking passes; half-price is equal to $40/month and the Parking Division will bill the Economic Development budget for the remaining $40/month. He added that the jobs being created exceed the County median in terms of wages and benefits. Staff is recommending the City offer up to a total of 10 half-price parking passes, for a period of two years. Davidson further clarified some of the requirements of Telepharm in order for this arrangement to work, noting that if maintained for three years, the subsidy would be forgiven. EDC March 30, 2015 4 Preliminary COMMITTEE TIME: Tracy Hightshoe stated that the Iowa SBA was accepting nominations for “Small Business Community of the Year” and that staff submitted a nomination on behalf of Iowa City. She shared a copy of the application with Members. Markus noted that when you start to read about all of the things the City is doing for small businesses, it really shows how much is being done. Davidson then spoke to a couple of renovation projects downtown for which the City has been asked to help financially. He stated that they are still working out the details, but that one is on the Whitey’s building and the other is the Fieldhouse building. They hope to have these on an agenda soon. Also occurring soon will be the City-initiated process for the rezoning that would lead to the Chauncey project moving forward. Davidson also noted the Moss property project off Highway 1 and Interstate 80. He stated things are starting to happen here, and that grading has been taking place. Hayek noted that if and when anything comes forward on the Whitey’s building project, he would need to recuse himself from this conversation. Payne asked about some funding that was approved about a year ago for a new restaurant. Davidson stated that this did not come to fruition. Hightshoe noted that they pulled out of the deal at the last moment. This would have been a CDBG funded project. Davidson also noted an article that was placed in this meeting’s packet regarding Cedar Rapids’ TIF process. OTHER BUSINESS: None. ADJOURNMENT: Payne moved to adjourn the meeting at 12:55 P.M. Hayek seconded the motion. Motion carried 3-0. EDC March 30, 2015 5 Preliminary Council Economic Development Committee ATTENDANCE RECORD 2014 - 2015 NAME TERM EXP. 0 2 / 1 0 / 1 4 0 4 / 0 1 / 1 4 0 7 / 1 4 / 1 4 1 0 / 1 3 / 1 4 1 2 / 0 8 / 1 4 0 1 / 1 2 / 1 5 0 3 / 3 0 / 1 5 Michelle Payne 01/02/16 X X X X X X X Matt Hayek 01/02/16 X X X X X X X Susan Mims 01/02/16 X X X X X X X Key: X = Present O = Absent O/E = Absent/Excused To: Economic Development Committee From: Wendy Ford, Economic Development Coordinator Date: November 23, 2015 Re: 12/1/15 Agenda item #3, Request for funding; Riverside Theatre Intro Riverside Theatre has submitted a request to the City of Iowa City for $16,500 in funding assistance for Fiscal Year 2017. The requested funding would be used for increased local and regional awareness building through advertising, branding and signage, improvements to the patron experience in the form of lighting, seating and carpeting, and to offset a portion of co- production expenses in a new collaborative partnership. History An institution in the Northside Marketplace, the theater has been in existence for 35 years and recently completed a succession plan, transitioning from founding partners and directors, Ron Clark and Jody Hovland, to a new Artistic Director, Sam Osheroff, and Executive Director, long time employee Jennifer Holan. Riverside is Iowa City’s only resident professional theater. The theater now employs a year-round staff of seven and each season hires dozens of artists. In 2013-14, 85 unique artists were hired, 72 of whom were Iowans and 13, non-Iowans. In 2014- 15, Riverside offered a total of 101 programmed events. Of those, 72 were regular season events, 20 were shows in June and July and the remaining events were Theatre Talks and Education classes. A non-profit, Riverside Theatre is largely supported by contributors. In 2014- 15, 55% of annual income came from contributions and sponsorships with earned income making up the difference (which is typical for a regional theatre of this size). The City funded the theatre for 3 years in FY13, 14 and 15 in the amounts of $30,000, $25,000 and $20,000 respectively, in large part to help offset losses of property and revenues post flood of 2008. This request is for funding in FY17. Solution The Comprehensive Plan notes that Riverside Theater is a key part of our “small city with big city arts and culture” and one of the organizations that adds to the vitality of the city. The comp plan states a goal of recognizing the economic development potential of Arts and Culture for Iowa City with specific strategies of increasing visibility and awareness of arts and culture programs (IC2030: Comprehensive Plan Update, May, 2013). Ensuring that Riverside Theatre continue as a viable arts business in Iowa City is also consistent with the Central District Plan (updated in Oct. 2008), which calls for preserving and promoting the unique aspects of and supporting the economic vitality of the Northside Marketplace. The City Council’s 2014-15 Strategic Planning Priorities include three goals that relate directly to supporting Riverside Theatre: striving for 1) healthy neighborhoods, 2) a strong urban core, and 3) engaging in strategic economic development activities. Recommendation Because this request for $16,500 financial assistance is aligned with the Comprehensive Plan, the Central District Plan and the City Council Strategic Planning Priorities, staff recommends the full funding request be considered by Council in the FY17 economic development budget. Please feel free to contact me with any questions. Riverside Theater representatives will attend your meeting, as well. RIVERSIDE 213 North Gilbert St. lowa City, lA 52245 Box Office: (319) 338-7672 Admin Office: (319) 887-1360 Fax: (319) 887-L362 i nfo@ ri ve rsi d etheatre. o rg www. ri ve rsid eth eatre. org l]i: l August 26,2015 Dear Tom and Wendy, Thanks very much for making time to meet with us last week to discuss our request for funding during the City's current fiscal year. As you requested, we've drafted a budget for you to consider. We've prepared a request for S15,500, along with brief information on the specific goals, strategies and tactics the proposed amount will support, as well as ways in which we hope to further leverage any funding received. As we discussed in the meeting, these funds will support change and growth, not general operating expenses. And on the topic of growth: Yesterday we had another encouraging meeting with the institute of higher learning with which we're striving to form a new relationship. We're collaborating to document a 3-year potential partnership, with year 1 beginning summer 20L6. Our discussions include whether our potential partner can provide us with a summer venue, and they seem very open to this idea. lf we can make this happen, in the near term we'll have a solution-one that provides greater seating capacity, additional marketing exposure, new audience, an increased presence in the community, and improved status as a destination event for people outside of the immediate area. lt's a massive opportunity. The approval process on our partner's end involves many layers, but each tim6 we progress to another level we're met with excitement about what RT can offer in partnership, as well. All signs seem to point to this coming together, so we've approached our budget/request to include support for getting this partnership off the ground. We, believe it's critical for them to see that we are invested. Needless to say, we're open to revising our plans based on what's feasible for the City's budget this year, and how the potential partnership plays out. lf we encounter difficulties we'll disclose them immediately so we can identify appropriate next steps together. We greatly appreciate your willingness to consider this request, and the City's longtime partnership with RT. lf you'd like discuss any of this in person, say the word. We look forward to your feedback. Sincerely, hr^ Jennifer Holan,Executive Director Sam Osheroff, Artistic Director Riverside Theatre Proposed funding 2016 City of Iowa City Objective Strategy Proposed Investment Amount Funding Use Additional Return Enhance presence in Iowa City Update and increase amount of branding/signage 2,500 Design/produce vinyl banners for City lamp posts. Design/create new Gilbert St. building signage, and/or a mural, if permission secured (or similar tactics). May be able to leverage this funding for a match (possibly fom ICDD?) Make RT/IC a regional destination Book non-local advertising 5,000 Run print and online media to attract audience from Des Moines, other points west of IC--primarily for summer season 2016. Will leverage this funding for match from educational partner. (Match may be venue for summer programming, and/or additional marketing funds or exposure.) Improve patron experience Improve Gilbert St. lobby and theatre 2,500 New lighting fixtures/electrical work in lobby; upholstery for new lobby seating. New carpeting in theatre. This would match funding we've requested from CFJC. Will also explore patron match. Lobby enhancements should also drive increased concession sales. Grow through partnerships/collaboration Collaborate with educational institution and co-produce plays 6,500 To offset a portion of estimated co-production expenses, including pre-professional actor salaries, program management (additional hours from current RT part time/hourly staff) Will leverage this funding for match from educational partner. (Match may be venue for summer programming.) TOTAL 16,500 To: Economic Development Committee From: Wendy Ford, Economic Development Coordinator Date: November 23, 2015 Re: 12/1/15 Agenda item #4, Request for funding; Little Village Intro Little Village Magazine is requesting $7,908 in financial assistance to help with the relocation and remodeling of an office location in Riverfront Crossings just north of the old Train Depot at 623 S. Dubuque Street. Little Village will move their operations to the new location, collaborate with an artist in residence for studio space and open a small retail shop with specialty items and gallery space for the artist. Little Village employs six full-time employees in the creative fields of writing, editing, graphic design and web design. History The building is an older office building that is also home to Her Soup Kitchen restaurant. Building owners and Little Village Magazine owners have a strong interest in maintaining the charming older character of that block of Riverfront Crossings and feel that attracting Little Village Magazine as a business tenant to the neighborhood helps to do that. The building co-owners, Steve and Suzanne Long and Little Village owner, Matt Steele plan to spend almost $24,000 on building upgrades. A combination of energy efficiency upgrades (furnace, A/C, windows and lighting) along with cosmetic improvements (paint, flooring and signage) will improve the old building, add appealing and affordable new office space, and give a boost to the exterior appeal with a modest budget. Discussion The economic development section of the Comprehensive Plan update (IC2030: May, 2013) states a goal of encouraging a healthy mix of independent, locally owned businesses and national businesses, in part, by recognizing that small and independently owned, local businesses are integral to Iowa City’s “brand” and sense of identity. Additionally, the plan states a goal of supporting entrepreneurial activity and promoting an economic culture of innovation and collaboration among entrepreneurs and existing businesses. To this end, Little Village will be sharing office/studio space with an artist-in-residence who will also enjoy affordable space, be able to grow their business and collaborate on artistic projects for the magazine. The building is located in the Central Crossings sub district of the Riverfront Crossings Master Plan (Dec. 2012). Noted in the plan is a goal to maintain a moderate scale and intensity of use and to ensure that office uses are available. Owners want to ensure this one-story office building stays a one-story office building. Located just a few feet north of the historic Rock Island Depot building, its one-story size fits well and will help maintain the moderate scale of the small commercial neighborhood there. The City Council’s 2014-15 Strategic Planning Priorities include three goals that relate directly to supporting Little Village request: 1) healthy neighborhoods, 2) a strong urban core, and 3) engaging in strategic economic development activities. Little Village has 6 full time people who desire to live and work in a pedestrian-oriented neighborhood. The office building in this neighborhood helps to meet the goal of healthy neighborhoods by ensuring there are places to work in the neighborhood. Being three blocks from the center of downtown Iowa City, the project contributes to the goal of maintaining a strong urban core. As the employer of what are largely creative industry jobs (writing, editing and design), investing in the future of Little Village can be considered a strategic economic development activity. Economic Development policies require that for consideration of economic development financial assistance, the developer must contribute at least as much as the request from the City. In this case, the building owner and the building tenant would pay 2/3 of the $23,725 and are requesting the other 1/3 ($7,908) from the City. Recommendation Because this request for financial assistance is aligned with the Comprehensive Plan, the Central District Plan and the City Council Strategic Planning Priorities staff recommends the funding request be granted from FY16 Economic Development funds. ALWAYS FREE Iowa City Economic Development Committee c/o Wendy Ford Dear Friends on the Iowa City Economic Development Committee: Exciting news: In November, Little Village will open a new office at 623 S Dubuque St, in Iowa City’s Riverfront Cross- ings district. Though we will be a new addition to the neighborhood, our hope is that this investment in older building stock in that area will help Iowa City retain some of the original character of that block, as we believe aligns well with the city’s plans. Nearly $24,000 in updates are currently underway, including exterior and interior repairs and updates, as well as the addition of an artist studio — the first of its kind to open in the newly appointed arts-friendly district. Commercial activity will include marketing and design services — currently employing six full time creative profession- als and serving over 100 public and private organizations in the Iowa City area — with potential expansions into light retail, art exhibition, or coffee service, depending on the changing demands of the neighborhood as it grows. Here is a breakdown of known costs: • Interior wall removal and remodel: $1500 • Exterior paint: $2000 • Energy efficient front door and windows: $3800 • High efficiency furnace/AC: $6000 • New flooring: $4500 • Exterior glass block repairs: $625 • Updated electric $1200 • High efficiency LED Lighting and ceiling tile replacement: $3100 • Interior painting: $1000 • Total: $23,725 Little Village and the building owners, ICBUR,LLC, request that the City partner with us to make these improvements, jump-starting this exciting addition to the Riverfront Crossings district with a 1/3 share of expenses ($7908). Thank you for your consideration, Matthew Steele, Little Village publisher@littlevillagemag.com cell: 319-512-9395 Attached Images: Exterior “before” & “after,” flooring samples Oct. 26, 2015 623 S Dubuque St. EXTERIOR BEFORE & AFTER FLOORING: Main Area: slatted, char- coal-hue, wood-grain flooring will replace outdated, heavily soiled carpeting. (See “Pent House” at left) Offices: Green flooring matching “LV green” branding will deaden sound in our primary work spaces. (See “Pine Needles” at right). New white desks will brighten the space. To: Economic Development Committee From: Wendy Ford, Economic Development Coordinator Date: November 23, 2015 Re: 12/1/15 Agenda item #5, Request for funding; Creative Corridor Branding Sponsorship Intro The Creative Corridor brand was established a few years ago to promote the rich assets of the corridor to four target market markets: a) companies located in, expanding in or moving to the corridor, b) current residents and employees, c) potential residents and employees, and d) young college-educated residents who are not place-bound. They are requesting $10,000 in FY16, 17 and 18. History The impetus for creating a regional brand stemmed from the idea that promoting the area along and at either end of the I-380/218 corridor between Washington and Benton counties, as opposed to each part of the area individually, would have a larger impact on the regional and national appeal of the area. The Creative Corridor campaign is a collaborative effort involving organizations from up and down the corridor pledging annual contributions to continue the effort. The following is a list of contributing organizations and their annual pledges. Organization Yearly Pledge University of Iowa $26,666.00 Kirkwood $13,333.00 Cedar Rapids Metro Economic Alliance $5,000.00 Iowa City Chamber of Commerce $2,500.00 Marion Chamber of Commerce $1,000.00 City of North Liberty $5,000.00 Iowa City Area Development Group $5,000.00 East Central Iowa Council of Governments $1,500.00 City of Coralville $7,500.00 City of Cedar Rapids $10,000.00 MEDCO $1,000.00 Economic Regions Grant $17,000.00 Discussion The website, www.iowascreativecorridor.com gives the public the big picture of the area while highlighting aspects of each community. It gives employers information about the workforce and confidence that if they bring jobs, there will be enough people to fill those jobs. The Creative Corridor job search page at www.creativecorridor.co/jobs/ gives job seekers more than a dozen sources for searching for jobs in the Corridor. In the case of the Creative Corridor, the whole really is greater than the sum of its parts. As a whole, the region offers a larger laborshed from which to attract employees; as a whole, the region offers neighborhoods and communities from rural to urban; as a whole, the region offers cultural amenities on par with any of the big Midwest metros, and because of that, the region is able to be more competitive in attracting businesses and families to the Corridor. The updated Comprehensive Plan states several economic development goals including continued collaboration with other local organizations to promote economic development in Iowa City. To achieve this, one strategy is to continue to work with the Iowa City Area Development Group (a key partner in the Iowa’s Creative Corridor collaboration) as the lead economic development agency in the area. Other strategies include coordination with the University of Iowa, the Iowa City Area Chamber of Commerce, and other organizations to attract new businesses and grow existing ones. Recommendation Staff recommends funding Iowa’s Creative Corridor $10,000 this fiscal year from the Economic Development fund and for budgeting funding in FY17 and 18.