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HomeMy WebLinkAbout11-13-2007 Council Economic Development Committee AGENDA City of Iowa City City Council Economic Development Committee Tuesday, November 13, 2007 1 :30 p.m. Lobby Conference Room Iowa City City Hall 1. Call to Order 2. Consider approval of October 9 and October 25,2007 Economic Development Committee meeting minutes 3. Downtown Market Niche Analysis Draft Report (Marketek via conference call) 4. Staff time 5. Committee time 6. Adjournment MINUTES CITY COUNCIL ECONOMIC DEVELOPMENT COMMITTEE OCTOBER 9, 2007 CITY HALL, LOBBY CONFERENCE ROOM PRELIMINARY Members Present: Regenia Bailey, Bob Elliott Members Absent: Connie Champion Staff Present: Wendy Ford, Jeff Davidson, Dale Helling Others Present: Joe Raso, Mark Nolte, Craig Gustaveson CALL MEETING TO ORDER Chairperson Regenia Bailey called the meeting to order at 8:30 AM. APPROVAL OF MINUTES OF SEPTEMBER 13, 2007 Elliot moved, Bailey seconded that the minutes of the Sept. 13, 2007 Economic Development Committee be approved. Motion carried. ANNUAL REPORT FROM IOWA CITY AREA DEVELOPMENT GROUP Joe Raso distributed several pieces of information including the ICAD Group Annual and Multi-Year Reports entitled Measure of Progress - Strategic Investment for Strategic Results; a Progress Report prepared by the Economic Strategy Center which provides broad based metrics on number of jobs, earnings, deposits, investments and projects as it relates to the work ICAD has done; and a report on services provided to the city according to the Memorandum of Understanding between ICAD Group and the City of Iowa City. The annual report highlights some FY 2007 results, such as creating 1,067 new jobs with an annual payroll of $36 million. During the year, they recruited four new companies including KemPharm, Cole's Quality Foods, Acciona and Prep Sports Online. They also assisted five existing businesses to expand including Alpla, Whirlpool, P & G/Duke, Plastic Products and LMS America. The multi-year report for 2002-2006, is the first of its kind for ICAD and is important because it shows how the recently completed investment campaign is performing for its investors. Notable highlights in the report include that ICAD Group is responsible for creating 5,015 new jobs with an annual payroll of $150 million and for helping to retain 831 jobs for the period between 2002 and 2006. Mark Nolte talked about the highlights of another document (provided in the packet) called the Business Climate Report by Blane/Canada. This report provides standardized reporting of economic development information for communities of similar size and thus, a set of metrics which we can use to compare with comparable communities. Local information in the Business Climate Report was gleaned from data gathered from 25 Synchronist Business Information System Interviews conducted in 2007. The report includes information on business growth and expansion, community weakness, workforce needs, community strengths, and an assessment of value, growth risk and satisfaction of Iowa City companies. An example of information from the business growth section include that 67% of the companies interviewed have increasing employment needs, as compared to 44% of similar communities in the national data set. From the community weakness section there were negative comments about transportation, including two specifically related to the price and the number of flights from the Eastern Iowa Airport. Of particular note in the workforce section of the report was the extremely high quality workforce we have. Iowa City scored 5.9 out of 7, while national data scores 4.7. Finally, Raso distributed a report of Entrepreneurial Companies Assisted by ICAD Group in FY2007, which included (among others) Bochner. Chocolates, Yeager Enterprises, Bagolitas, Ecolotree and Asoyia. STAFF TIME. No report. COMMITTEE TIME. No report. Economic Development Committee October 1, 2007 Page 2 ADJOURNMENT. Motion and second by Elliott and Bailey to adjourn. Motion carried. Q) Q) .t E E o () ...., c Q) E Q. o -....... Q)o >0 ~N .~.,....:- E~C'? g.oQ) o .9 O'l () () <ll wOo. 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Q) >- W en Q) -.0 ~><oo<( MINUTES CITY COUNCIL ECONOMIC DEVELOPMENT COMMITTEE OCTOBER 25, 2007 CITY HALL, LOBBY CONFERENCE ROOM Preliminary Members Present: Regenia Bailey, Connie Champion, Bob Elliott Members Absent: None Staff Present: Jeff Davidson, Tracy Hightshoe Others Present: Kelly Durian, Karen Kubby, Nancy Quelhorst, Irvin Pfab, Gregg Hennigan, GiGi Wood RECOMMENDATIONS TO CITY COUNCIL Elliott moved to support the application for Tax Increment Financing from Iowa City Ambulatory Surgical Center. Champion seconded. Motion failed, 1-2 (Champion and Bailey opposed). CALL MEETING TO ORDER Chairperson Regenia Bailey called the meeting to order at 9:30 AM. CONSIDER APPROVAL OF OCTOBER 1. 2007 ECONOMIC DEVELOPMENT COMMITTEE MEETING MINUTES Davidson pointed out one correction which was needed; the word "may" changed to "many". With this revision, it was moved by Champion and seconded by Elliott to approve. The motion carried unanimously. DISCUSSION/ACTION ON IOWA CITY AMBULATORY SURGICAL CENTER TAX INCREMENT FINANCING REQUEST Durian stated that the charity care issue is something they might be able to work with. Durian asked if the Economic Development Committee wished to state specifically what would be required, and he could take that back to his board. Bailey asked for further explanation of the MidAmerican Energy standards in lieu of LEED certification. Durian responded that a baseline energy level was calculated and then strategies were determined for achieving a 5% savings. Champion stated that she had not changed her mind and that she did not think the medical care provided by the proposed ambulatory surgical center would be superior to medical care provided by Mercy Hospital. Champion stated she was concerned about the profit motivation and the impact on medical care due to investor expectations. In response to a question, Durian stated that Mercy Hospital's percentage of ownership could eventually be as low as 51%. Champion noted that other medical facilities have not asked for TIF funding. Elliott asked for further explanation of how energy savings calculations were made. Durian stated that an engineering firm would develop a baseline energy usage estimate, and then develop strategies for achieving a 5% or 10% energy savings and the associated expense. Bailey stated it would require a high level of charitable care to be provided for her to change her vote. Bailey stated the MidAmerican Energy standards were important, but they did not appear to be as high of a standard as LEED certification. Bailey asked if there were any public comments. Nancy Quelhorst asked if there were standards for when TIF funding is acceptable to request. Bailey stated it was a discretionary process. Champion stated there are standards which are used but they are not set in policy. Champion stated this TIF request would impact the City's ability to fund Fire Station 4, which was a priority for her. Bailey noted that Fire Station 4 would benefit the proposed ambulatory surgery center. Karen Kubby stated the proposed ambulatory surgical center would be successful with or without TIF funding. Kubby noted that ACT had gone on record as supporting the construction of Fire Station 4. Kubby stated there would be lost opportunities from using TIF funding for the Iowa City Ambulatory Economic Development Committee October 25, 2007 Page 2 Surgical Center. Kubby stated it was the responsibility of the Economic Development Committee to convince the remainder of the City Council that this was not the appropriate use of TIF funds. Davidson explained that the applicant would still be able to request that the City Council address the TIF request again, regardless of the Economic Development Committee's recommendation. Elliott stated he disagreed with Champion. Elliott stated he would not typically favor a project for TIF funding that was going to be constructed anyway. Elliott stated he favors this project by a slight margin, but he would prefer $200,000-$300,000 instead of the requested TIF amount. Elliott stated he likes the idea of encouraging not-for-profit entities to become property-tax-paying entities. Bailey stated she supported the project and hoped it succeeded without public funding. It was moved by Elliott and seconded by Champion to approve the application for Tax Increment Financing from Iowa City Ambulatory Surgical Center. The motion failed, 1-2 with Champion and Bailey voting no. Elliott stated he liked the project and hoped it would succeed. Bailey concurred. STAFF TIME Hightshoe stated that underwriting guidelines for CDBG funds would be coming to the Economic Development Committee for their consideration. Hightshoe noted that other places have standards for when TIF funds may be used, but the use of such standards is a discretionary matter. COMMITTEE TIME Champion stated she did not want standards governing when TIF funds can be used; she felt it was more appropriate to keep the process discretionary. Elliott stated he might favor some TIF standards. Davidson stated this matter had been discussed several times and that because requests for TIF funds are all different, the determination had been to keep the process discretionary. Champion .stated that community need was important. Bailey stated that TIF should be used to make happen what otherwise would not occur. Bailey stated she felt this was the community's expectation. Kubby asked if guidelines developed earlier by the Economic Development Committee were followed. Davidson stated they were followed as part of the discretionary evaluation process. ADJOURNMENT It was moved by Champion and seconded by Elliott to adjourn. The motion carried unanimously. Bailey declared the meeting adjourned at 10:00 AM. s/pcd/minutes/ecodev/10.25-07 ED.doc 0) 0) ;I::j "E E o u .- c 0) E c. Ot- -0 0)0 ~N o . 1.0 "~N EQ>(") 0.00) 8 ~ g> wOo... Gl Gl ~ E E o (J"'C - L. C 0 Gl (.) E cv g.~ Q)cv..... >(.)0 GleO CCUN ,~ "'C E e o cv c= 8<1: w '(3 C ::::l o (J l.t) N >< >< >< - 0 "l"" en W - >< >< - 0 0 "l"" "l"" - >< >< >< 0 "l"" M "l"" >< >< >< - en ~ N >< >< >< - ..... 0 "l"" >< >< >< - ..... "l"" N >< >< >< - CD "l"" W M >< >< - - 0 l.t) en N >< >< >< - l.t) N "l"" >< >< >< - ~ CD 0 >< >< >< - ~ N "l"" >< >< >< - M CD 0 >< >< >< - M ..... N >< >< >< - N 0 N >< >< >< - N en 0 >< >< >< - N M N >< >< >< - "l"" ro ro ro fJ) 0 0 0 ~ - - - N N N E '5. 0 0 0 - - - Q) X T""" T""" T""" I-W 0 0 0 e cu 0 .~ ~ = CV'Q. Q) '2 E E 0):: .c .2 e cu co cv cu 0= OJ: Z ~m mw 00 "0 Q) lJ) ::J () X _ W c:-~"O Q) c: c: Q) lJ) Q) Q) lJ) Q) fJ) lJ) ::J L.. .0 .0 () o...<(<(x W II II II :g Q) >- W lJ) Q) -.0 ~><oo<( 1 ~ i -~= -.....!t """'--..... .... f~~!i ~ ~aln~ -.: CITY OF IOWA CITY MEMORANDUM Date: To: From: Re: November 8, 2007 Economic Development Committee Wendy Ford Draft - Downtown Market Niche Analysis The following report is a draft of the Downtown Market Niche Analysis prepared by Marketek, Inc. As you know, Marketek has been working on this project since being awarded the contract in February, 2007. At the Economic Development Committee meeting on Tuesday, Nov. 13, Marketek will present the report via conference call and answer any questions about the draft findings and recommendations. The meeting is planned to be the last opportunity for the committee to provide feedback and to discuss changes for the final document which will be presented by Marketek in person at a presentation at the City Council Work Session on Monday, November, 26. On the following evening, Tuesday, November 27, Marketek will present their findings and recommendations at a Public Meeting from 5:00 - 6:30 p.m. at the Iowa City Public Library Room A.