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HomeMy WebLinkAbout10-20-2009 Council Economic Development Committee AGENDA City of Iowa City City Council Economic Development Committee Tuesday, October 20,2009 8:00 a.m. Lobby Conference Room City Hall 1. Call to Order 2. Consider approval of Sept. 15, 2009 minutes 3. Consider Downtown Business Incubator Study recommendation 4. Consider Updated Economic Development Strategies and Activities for 2009-2010 5. Towncrest Redevelopment Plans - project update 6. Staff time a. Preference for presentation on ICAD's Minding Our Business report. b. Possible scheduling of EDC Meeting in November to coincide with South Gilbert St.jRiver Rail EPA workshop. Regular meeting would have been 11 j 17 - EPA workshop folks will be here on Nov. 11 - 12 7. Committee time 8. Adjournment MINUTES CITY COUNCIL ECONOMIC DEVELOPMENT COMMITTEE SEPTEMBER 15, 2009 LOBBY CONFERENCE ROOM, 8:00 A.M. PRELIMINARY Members Present: Staff Present: Others Present: Regenia Bailey, Connie Champion, Matt Hayek Wendy Ford, Tracy Hightshoe, Jeff Davidson Ann Ashby, Lorenz 2.0 Owner; Joe Raso, ICAD RECOMMENDATIONS TO COUNCIL: CALL MEETING TO ORDER: The meeting was called to order by Chairperson Bailey at 8:00 A.M. CONSIDER APPROVAL OF THE MINUTES OF THE JULY 30.2009 ECONOMIC DEVELOPMENT COMMITTEE MEETING: Champion moved to accept the July 30, 2009 meeting minutes as submitted. Hayek seconded the motion. Carried 3-0. DISCUSSION OF A CDBG ECONOMIC DEVELOPMENT FUND APPLICATION FOR LORENZ 2.0: Hayek recused himself from this discussion and left the meeting room due to a conflict of interest. Hightshoe explained the Lorenz 2.0 business proposal to Members. Lorenz 2.0 is proposed to be a fashionable shoe store, geared toward the college-age and younger adult market. Hightshoe noted that the owner has previous business experience in this area. Staffs recommendation is to loan up to $15,000 for working capital with a maximum term of 7 years at 1 % interest. Champion stated that this could possibly be a successful business. However, she questioned the lack of the owners' investment of any cash of her own in the venture. She stated that she believes the owner should have some money of her own in the business, that she should carry the risk in this venture - not the City. Champion added that she does agree with staffs recommendation at this point. Bailey said that she agrees with Champion's statements. Ann Ashby, the owner, noted that she probably could secure more funding. She stated that she believes this venture will be successful, and that the family name will have an impact as they have been in the community since 1919. Bailey noted that she believes this will be a good addition to the downtown, but she agreed with Champion's statement. Hightshoe noted that if the owner can secure additional funding on her own, she would need to submit an updated business plan with projections, in order to reconsider this application. The discussion continued with Members noting that securing more funding would be their suggestion at this time. The owner asked what she needs to do in order to get things rolling so she can open for business in October. It was noted that once something is secured and the revised application is received, the Economic Development Committee will call a special meeting to deal with this issue. Ford Economic Development Committee Meeting September 15, 2009 discussed the timeline needed to get this through the City Council in order for Ashby to have an answer as soon as possible. DISCUSSION OF FUNDING REQUEST FROM ENTREPRENEURIAL DEVELOPMENT CENTER. INC. (EDC): Ford noted that Members have a letter in their packet from the Entrepreneurial Development Center (EDC) in Cedar Rapids. She noted that about a year and a half ago they approached the City Manager's office with a request for $15,000 in funding. At that time, the Economic Development Committee decided to forego any decisions until they knew more about the organization. Ford added that they had not heard anything further from this organization until recently, when Chuck Stein wrote a letter of request for $20,000 in funding support, as part of their Vitality 2014 fundraising campaign. Upon researching other area contributors to EDC, Ford noted that ICAD recently committed to $7,500 with the stipulation that EDC meet certain performance measures. She also noted that the Iowa City Area Chamber has opted not to fund EDC and that the City of Cedar Rapids recently started funding EDC with a commitment of $100,000 per year for five years. Ford stated that staff recommends they again table this consideration for now in order to see how EDC performs under ICAD's metrics in the coming year. Bailey and Champion both stated that they agree with staffs recommendation. Bailey asked Hayek what his thoughts are. Hayek stated that he agrees with the recommendation by staff. He noted that ICAD's involvement with EDC will give them a better picture of this organization. CITY COUNCIL ECONOMIC DEVELOPMENT COMMITTEE STRATEGIES AND POLICIES: A. REVIEW OF 2007-2008 FINAL REPORT - Ford noted that Members have a copy of this final report in their packet. She added that it serves as a good review and a benchmarking tool for review of the objectives in preparation for an updated 2009-2010 document. B. CONSIDER UPDATES FOR 2009-2010 - Ford noted that Members have a copy of this in their packets, as well. She stated that she believes they should review the policies and mainly focus on the objectives, to see if those still stand as the objectives for this Committee. Bailey asked Members to give their thoughts. Hayek noted that the six policies are broad and all-encompassing, as well as thoughtful. He asked if staff could come up with anything that they feel should be on this list. Davidson noted that they come at it from a different perspective than the Committee. He noted that the main purpose of reviewing this is to make sure they don't need to make adjustments to the policies and objectives, given the economic landscape of the past few years. Bailey noted that she is comfortable with the broad direction they are following. Hayek and Champion both agreed with this, as well. Davidson noted that if Members feel there is anything lacking in these policies and objectives to let staff know. The discussion continued, with Members discussing their thoughts on the direction that staff takes. Ford and Hightshoe then spoke about a grant the City has applied for through the Small Business Administration that they could focus on the City's southeast side, to help entrepreneurial ventures get started with various training. The discussion turned to perceptions by others in the area regarding the problems in the southeast side. Joe noted that some employers have told him Economic Development Committee Meeting September 15, 2009 that they have employees who walk to work, and they are now questioning their safety, due to these problems. He noted that employers who are attempting to recruit employees have stated that recruits are even questioning safety in this area. Ford added that a commercial landlord in the southeast side has stated they are having trouble getting tenants to renew their leases due to the crime in the parking lot. Members noted that the community has the expectation that this type of thing, the crime, will not happen here. Members continued to discuss the policies and objectives they have been following. Ford suggested a change to the fourth objective, noting that having something more specific here would be helpful for staff. Suggestions were discussed at some length by Members. Ford stated that they can further review this at their next meeting. COMMITTEE TIME: None. STAFF TIME: Hightshoe spoke about some of the other requests they have received, and the fact that they have been so busy with flood-related matters. Ford stated that she had a few updates for Members. Regarding the Downtown Incubator project, this was funded by the EDA for a feasibility study, and they should be receiving proposals this week. Currently they are in the middle of distributing Business Rental Assistance Program checks for the businesses that pay rent in formerly flood damaged commercial property. Ford noted that they are working with a consultant to recommend improvements to the North Side Market Place area, between Market Street and the alley, or up to Bloomington Street. Ford also spoke about the ICAD shovel- ready initiative, adding that it is well underway now. Also, according to Ford, the Towncrest redevelopment idea has been coming together with various options being created conceptually. She stated that there will be another public meeting soon to reveal these ideas and get feedback. ADJOURNMENT: Champion moved to adjourn the meeting at 9:08 A.M. Hayek seconded the motion. Carried 3-0. Economic Development Committee Meeting September 15, 2009 Council Economic Development Committee ATTENDANCE RECORD 2009 TERM ..... 01 en ...... ...... (0 EXP. -- -- -- -- -- -- NAME I\) I\) ..... I\) w ..... 0 ...... 01 ..... 0 01 Regenia 01/02/10 X X X OlE X X Bailey Matt 01/02/10 X X X X X X Hayek Connie 01/02/10 X X X X X X Champion Key: X = Present o = Absent OlE = Absent/Excused ,~ 1 -~= -~.... ~~ai~~ ~ ~aa.~ -,..:.. CITY OF IOWA CITY MEMORANDUM Date: October 16, 2009 From: City Council Economic Development Committee Wendy Ford !Li- Recommendation of Feasibility Study Proposal for Downtown Business Incubator To: Re: Our September, 2009 request for proposals to do a Feasibility Study for a Downtown Iowa City Creative Technologies Business Incubator netted four submissions. The proposal submitted by the Regional Business Center of the University of Northern Iowa, lead by Maureen Collins-Williams stood out for several reasons: . They are relatively local, located in Cedar Falls, Iowa, as opposed to the other submissions from Florida, California and Washington, DC. . They have experience running Business Incubators in University settings, urban settings and on the web (MyEntre.net) . We know the principal investigators and have worked with them in the past to secure EDA funding to begin the study and planning for the Creative Technologies Incubator. . The fee is below the EDA funding amount we have been awarded to conduct the study. We were awarded up to $60,000 in EDA funding to be matched at 20%; the proposal is for $45,000. . Three staff members reviewed the proposals and all had the same top choice. For these reasons, staff recommends the Regional Business Center of the University of Northern Iowa be selected to conduct the Feasibility Study for a Creative Technologies Incubator. 1 ~ 1 -~= -~.... ~~ai~~ ~~_aa.~ ....,.. ... CITY OF IOWA CITY MEMORANDUM Date: October 16, 2009 Re: City Council Economic Development Committee Wendy Ford il~ Update of Strategies and Policies for Economic Development To: From: As you recall, we reviewed the past two calendar years of Economic Development activities at the September, 2009 meeting. We used that review as a starting point for a discussion about whether your Policies and Objectives needed any substantial revision for a 2009 - 2010 update. As a reminder, your Economic Development policies have been and will remain: 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 the 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. Your four key objectives for economic development have been: 1. Foster the retention and expansion of primary sector existing businesses and attract new businesses 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. Workforce development. You agreed that objective 4 should be rewritten to address an emerging workforce issue in Iowa City: employee safety. Staff recommends a new 4th objective read as follows: . Work to improve the safety of business neighborhoods to a) maintain our ability to attract and keep businesses and b) keep the workforce safe. Following this cover memo, are staff's recommended Economic Develo~ment Strategies for achieving the Objectives for 2009 and 2010. At your meeting on the 20t , let's discuss a recommendation of these Strategies being adopted by the full council. ECONOMIC DEVELOPMENT Policies and Strategies for the City of Iowa City 2009-2010 Draft October, 15, 2009 Council Economic Development Committee Draft October 15, 2009 Council Economic Development Committee Economic Development Policies 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. Economic Development Strategies (Calendar Year 2009-2010) VISION Iowa City aspires to be a global community defined by the creativity, diversity and innovation of its citizens and businesses. MISSION/GOAL To achieve a vibrant local economy. OBJECTIVES 1. Foster the retention and expansion of interstate commerce 1 existing business and attract new business to Iowa City. Measurables: 2 expansions; 2 new businesses; 0 business losses (of those we have assisted); create/update marketing materials. STRATEGIES a. Have ability to respond as needed to infrastructure needs . Plan and budget for Economic Development infrastructure in Capital Improvement Plan, including roads, utilities, telecommunications, water and sewer. . Apply for RISE (Revitalize Iowa's Sound Economy) and other financial opportunities for assistance b. Market new and existing land for development and redevelopment . Fully utilize LOIS (Location One Info System) system to post information on the community, buildings and sites in the market . Seek Shovel Ready Sites Certification on appropriate sites c. Continue improving comprehensive marketing and presentation materials, in concert with ICAD . Community Profile . Updated "How to do Business in Iowa City" pamphlet, to market Iowa City . Financial Assistance package information 1 See list following Objectives and Strategies. 2 Draft October 15, 2009 Council Economic Development Committee . Zoning map and available land d. Develop system of regular communications about business in Iowa City . Maintain positive relationships with existing businesses with public recognition of accomplishments including long term business in Iowa City, good corporate citizens in Iowa City and stability of permanent full time employees of the labor force . Act upon ICAD's annual retention surveys and gather information to evaluate satisfaction with governmental and area support services. . Build confidence of land owners for planning of commerciallindustrial and office growth . Communicate through city's Economic Development web pages e. Review use of tax and other incentives to increase tax base through construction of new facilities andlor additions to existing improvements . Review, refine and improve program policies . Review, refine and improve program application processes f. Work with development community on development andlor redevelopment plans in the following areas . Towncrest . South Gilbert Street . Aviation Commerce Park commercial areas g. Develop local, regional and state business network by active involvement and presence with . Chamber, Chamber government affairs committee, ICAD (Iowa City Area Development Group), CVB (Iowa CitylCoralville Convention and Visitors Bureau), IDED (Iowa Department of Economic Development), PDI (Professional Developers of Iowa) . Mid-American Energy 2. Support the Development of Downtown to ensure a healthy mix of retail, services, entertainment, office, residential, lodging, and nightlife Measurables: Begin implementation of program of marketing to commercial tenants; retain existing retailers, gain 5 new businesses. STRATEGIES a. Use 2007 Market Niche Analysis information as guide for implementing program of marketing available commercial property b. Create a fayade renovation incentive program c. Continue exploring feasibility and development of creative technologies business incubator d. Capitalize on the Cultural district designation 3. Assist in the development of Entrepreneurial Businesses in Iowa City Measurables: support 10 new businesses STRATEGIES a. Market financial assistance programs via bankers, the web, & community outreach b. Continue exploring feasibility and development of creative technologies business incubator c. Develop relationships with Technology Innovation Center (TIC) businesses and opportunities for their expansion in Iowa City d. Use $250,000/year in CDBG funds to assist new businesses 3 Draft October 15, 2009 Council Economic Development Committee 4. Work to improve the safety of business neighborhoods to a) maintain our ability to attract and keep businesses and b) keep the workforce safe. (Measurables: benchmark reports of employer concerns, police calls to select areas) STRATEGIES a. Work with employers and/or business landlords to learn of specific issues and areas the city can help b. evaluate city infrastructure such as lighting in public right of way where where public safety features can be improved c. be responsive to employer requests for increased public safety measures City of Iowa City Target Industries and Technologies Opportunity List This list identifies industries and technology groups that are compatible with the Iowa City community. The purpose of the list is to focus the City's proactive economic development activities and ICAD's efforts on behalf of the City of Iowa City. The focus of the City's proactive economic development activities will use this as its preferred industry and technology list: . to focus efforts on retention or expansion of existing businesses, . to focus efforts on attracting potential business, . and focus on locating new businesses and expanding businesses as permitted under current zoning, . as a guide for considering the offer of financial assistance, . and will not discourage other industries and companies from seeking assistance. The list includes these industries and technologies 1. Biocatalysis and Bioprocessing Research and Development 2. Communications Services 3. Computer Software DevelopmenUComputer Simulations of Complex Systems 4. DrugslPharmaceutical 5. Educational Services 6. Electronic and Other Electrical Equipment 7. Environmental Technologies and Energy Resource Alternatives Research and Development 8. Insurance Services 9. Human Health and Medicine (Alternative Health Care Systems) 10. Light Manufacturing 11. Medicallnstruments/lnstruments and Measuring Devices 12. Music Recording Studios/Audio-Visual Production 13. Printing and Publishing (Public Relations/Graphic Arts/Design) 14. Value Added Agricultural Products 15. Wind Energy Industry manufacturers 4 ,~ 1 -~= -....!t -----.... ~~~~ ~~...aa.~ ~__ l CITY OF IOWA CITY MEMORANDUM Date: October 16, 2009 Re: City Council Economic Development Committee Wendy Ford ty Towncrest Redevelopment Plan To: From: For several months, staff has been working on a Towncrest Redevelopment Plan that would be consistent with the Comprehensive Plan and guide redevelopment in an area that has seen a decline in taxable valuation and increase in commercial space vacancies. At our meeting on the 20th, we will be reviewing conceptual drawings created in the Urban Planning Division that will illustrate ideas that have been generated at- . a meeting in the Towncrest neighborhood in October of 2008 . the Southeast District Planning Meeting in March of 2009 . one on one meetings with business and property owners . one on one meetings with a number of realtors and developers . staff discussions The information we gathered at the meetings has been assembled in a list of goals for the redevelopment area. Bob Miklo and Christina Kuecker will share the proposed goals and concepts for the Towncrest Urban Renewal Area at the meeting. We are making progress on the writing of the Redevelopment Plan, and are now considering the options for financial incentives we could offer to - . encourage redevelopment. . incent redevelopment by individuals or teams of developers with proven success in similar projects. . Ensure that projects receiving incentives are on a large enough scale to create and continue the catalyst of new development desired. At our meeting on the 20th, we will discuss the progress of the plans and get your feedback.