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.