7.1. EDSR 09-21-2020 Request for Action
Cir•ci
Elk -
River=
To Item Number
Economic Development Authority 7.1
Agenda Section Meeting Date Prepared by
General September 21, 2020 Amanda Othoudt,EDD
Item Description Reviewed by
Chamber of Commerce Business Survey Recap Zack Carlton,Planning Manager
Suzanne Fischer, Community Development Director
Reviewed by
Cal Portner, City Administrator
Action Requested
Receive information,provide feedback.
Background/Discussion
Citing undocumented concerns regarding the business atmosphere experienced by developers with the city,the
EDA commissioned a survey through the Elk River Area Chamber of Commerce to identify specific concerns.
Two follow-up meetings were held with participants of the survey with Commissioners Westgaard,Wagner and
Blesener. The information gathered was shared with the city administrator who developed a workplan to address
the concerns.
Over the course of several months, staff addressed concerns addressed by the Elk River Area Chamber of
Commerce survey and presented it to the Commission.
Below is a summary of key take-a-ways from the matrix discussion.
Concern # 2: Current rebate programs are insufficient to achieve the objectives of the stated goals.
It was consensus of the Authority that current rebate programs are adequate with room for improvement and
continual review,given how the city markets Elk River as Energy City.
Concern # 9 (a): Can there be a proactive approach to business development such as educating builders,
contractors, owners before a project is submitted? (b): Communications regarding process requirements
for Building Permits, Codes, Loan Programs and Ordinances needs to be timely, consistent, clear,
transparent, and communicated upfront, before excessive money is spent.
It was consensus of the Authority while there is progress made and while there are key activities, there is
opportunity for better visibility and the Authority feels this is not quite adequate to this point.
Concern #11 EDA loan processes are cumbersome. Can they be simplified and expedited?
The consensus of the EDA was to have the EDA attorney review all programs and applications and redline what
must be kept in the policy and come back for review of the discretionary language for the EDA to consider.
The Elk River Vision P I I E I E I I Y
A welcoming community avith revolutionary and spirited resourcefulness, exceptional [NAfUR
service, and community engagement that encourages and inspires prosperity. Updated.August 2020
Concern #15 The perceived notion the agenda of a staff member can influence the way the city processes
and interprets an application. Shouldn't it be a collective effort, or common goal, for staff and
entrepreneurs to build and grow the business community in Elk River together?
The EDA seeks to obtain feedback after every loan processed. It was suggested that staff complete a post process
questionnaire for the applicant to outline what worked and what didn't work for the process
Concern #3: Clearly outline what is being inspected for the entire project and limit the inspection to that
list. New items should not pop up with every inspection. Concern #4: Clear written instruction including
citing relevant code for each infraction.
The Commission felt that the presentation of items staff has revised or added, and the implementation of
Citizenserve, adequately addressed the issues in the Chamber of Commerce Business Survey concerns #3 and #4.
Concern #1: If the city really wants to be known for supporting renewable energy, they should
reconsider their incentive programs to support projects that are in line with the stated objectives in the
Comprehensive plan: to be more energy efficient, preserve resources, even if it means ordinance or
design flexibility. Concern #7: Use the velvet glove approach when delivering requirements for
compliance. Think of the business owners as customers.
Commission consensus on concerns #1 and #7 was the issues have been addressed and follow up will be
continuous.
Financial Impact
N/A
Mission/Policy/Goal
Citing undocumented concerns regarding the business atmosphere experienced by developers with the city,the
EDA commissioned a survey through the Elk River Area Chamber of Commerce to identify specific concerns.
Attachments
■ Chamber of Commerce Business Survey Matrix
■ May 18, 2020, EDA Staff Report and Minutes
■ June 15, 2020, EDA Staff Report and Minutes
■ July 20, 2020, EDA Staff Report and Minutes
■ August 17, 2020 EDA Staff Report and Minutes
N:\Departments\Community Development\Economic Development\EDA\Administrative\Agenda\EDA Agenda Packets\2020\09-21-2020\7.1 sr Business Survey
Matrix Recap.docx
Action Plan
Elk River Area Chamber of Commerce Focus Group Discussions
July 30 & 31, 2019
Concerns/Recommendations
Type of
Concern
Task/Action
Staff Point of
Contact
Expected Completion Date
(Date to CC or Commission)
1
If the city really wants to be known for supporting renewable energy, they
should reconsider their incentive programs to support projects that are in line
with the stated objectives in the Comprehensive plan: to be more energy
efficient, preserve resources, even if it means ordinance or design flexibility.
Policy Review Comprehensive Plan Update
-Explore programs to support goals
-Explore ordinances that provide flexibility to meet
goals
Zack
Comp Plan update throughout the year.
Work session discussion July 20.
July 20 (Postponed to August 17)
2
Current rebate programs are insufficient to achieve the objectives of the stated
goals.
Policy Review ERMU, EDA and HRA Commission Reviews
-Discuss programs to achieve Comp Plan Goals
-Determine what is sufficient
Amanda/Troy
May 18
3
Clearly outline what is being inspected for the entire project and limit the
inspection to that list. New items should not pop up with every inspection
Communication Citizenserve Software Implementation Suzanne June 15 (Postponed to July 20)
Formal letters of explanation Suzanne/Bob R. June 15 (Postponed to July 20)
Preconstruction meetings Suzanne/Bob R. June 15 (Postponed to July 20)
Develop inspection policy for each permit with
explanation sheet for each permit to include relevant
code citation
Suzanne/Bob R. June 15 (Postponed to July 20)
5
Clear written instruction including citing relevant code for each infraction. The
remedy should be clearly defined so there is less re-work that needs to be done
Communication Citizenserve Software Implementation Suzanne June 15 (Postponed to July 20)
6
Can there be an ombudsman or advisor type position to negotiate the maze of
city rules on the business owner’s behalf? This person could develop
relationships proactively with business owners and encourage a partnership
mentality between owners and city staff.
Budget/Position
Addition
Council Budget discussion Suzanne/Zack/Amanda May 18 - First budget meeting discussing
new positions requests.
7
Use the velvet glove approach when delivering requirements for compliance.
Think of the business owners as customers.
• The business customer often does not feel their risk is appreciated or understood.
Empathy does not mean bending the rules.
• It is generally understood that rules are rules; it’s the attitude and approach of
those tasked with compliance/enforcement that makes the difference.
• Can Compliance and Customer Service both be accomplished or balanced?
• Find a way to say “yes” and not always “no”. Find a way to be more welcoming
in the process, even when the answer might be “no”. Can staff help to find a way
to say “yes” with suggested changes in design?
Customer Service -Customer Service Training
-Professional Standards Training
Suzanne June 15 (Postponed to July 20)
FAQ guides Suzanne/Zack/Bob June 15 (Postponed to July 20)
Authority/Council review/craft of ordinance and
policy purpose statements
Zack/Amanda July 20 (Postponed to August 17)
8 There is a need for balance between desire for beautification and business use of
property (storage, signage etc.)
Policy Council Review/Action on city ordinances Zack July 20 (Postponed to August 17)
9
• Can there be a proactive approach to business development such as educating
builders, contractors, owners before a project is submitted?
• Communications regarding process requirements for Building permits, Codes,
Loan programs and Ordinances needs to be timely, consistent, clear, transparent
and communicated up front, before excessive money is spent.
Education
Planning and ED
-Incorporate Pre-application meetings
-Encourage Work Session Reviews
Suzanne/Zack June 15 - Process has started. No need to
discuss, provide as information in future
update.
Review and update project checklists Zack July 20 (Postponed to August 17)
Meet with Minneapolis planners regarding their
Business Navigator Office
Amanda May 18
Citizenserve Software? Suzanne June 15 (Postponed)
Website Update – Opening a business in ER Amanda/Zack May 18
10
• Communicating in person vs. sneaking around taking pictures or sending
threatening letters would be appreciated more.
• Several references to the ‘enforcement’ verbiage on the city truck were used as an
example of a philosophy being tilted away from personable customer service.
Communication -Public Information for CUP compliance process
-Council/Authority work session discussion
regarding legal compliance / notice requirements
Zack July 20 (Postponed to August 17)
Re-brand nuisance code division Zack Community Enhancement division
unveiled.
July 20 (Postponed to August 17)
11 EDA/HRA Loan processes are cumbersome. Can they be simplified and expedited? Policy EDA/HRA policy review Amanda May 18 & June 15
12
There is no substitution for product knowledge, some examples of staff not fully
knowledgeable of the code, ordinance, process or loan. Additional training can help.
Training Remedial staff training Amanda/Zack Cal seek additional direction from Matt
and Jennifer on specific topics to provide
direction on training needs.
13
How can the Planning and Zoning process be streamlined and given more authority to
reduce timelines?
Policy Council policy discussion regarding:
- Policy delegation
- Ordinance standards
- Uses and approval process
- Eliminate one of two public hearing requirements.
- Eliminate some permitting requirements
Zack July 20 (Postponed to August 17)
14
A review of the city fee schedule is needed both by comparison cities and philosophy.
(i.e. bldg. permit, sac/wac, utility deposits)
Policy Council Work Session Discussion on Fees Cal June 15 - July 20 if planning fees too
July 20 (Postponed to August 17)
Fee Comparison Study Suzanne June 15 - July 20 if planning fees too
July 20 (Postponed to August 17)
15
• Some perceived that the personal agenda of a staff member can influence the way
City process is interpreted.
• Shouldn’t it be a collective effort, or common goal, for staff and entrepreneurs to
build and grow the business community in Elk River together?
Communication
Education
Perception
Public education on city process/rules Cal May 18 & June 15
Council/Authority work session on processes Amanda/Cal/Zack May 18 & June 15
Follow-up on August 17 with an overview of the feedback received, actions taken, and next steps.
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional
service, and community engagement that encourages and inspires prosperity
Request for Action
To
Economic Development Authority
Item Number
3.0
Agenda Section
General Business
Meeting Date
May 18, 2020
Prepared by
Amanda Othoudt, Economic Development
Director
Item Description
Chamber of Commerce Business Survey: Concern
#2, #9, #11, #15
Reviewed by
Cal Portner, City Administrator
Reviewed by
Action Requested
• Receive information, provide feedback.
• Agree, by consensus, the action sufficiently meets or exceeds expectations to address
concerns/recommendations from the Chamber of Commerce Business Survey: Concern #2, #9, #11
and #15.
Background/Discussion
Citing concerns regarding the business atmosphere experienced by developers with the city, the EDA
commissioned a survey through the Elk River Area Chamber of Commerce to identify specific concerns.
Two follow up meetings were held with participants of the survey with Commissioners Westgaard,
Wagner and Blesener. The information gathered was shared with the city administrator who developed a
workplan to address the concerns.
Staff will review all the concerns outlined in the workplan organized by department prior to the EDA
regular meetings scheduled in May, June, July, with a wrap up in August.
Concern #2: Current rebate programs are insufficient to achieve the objectives of the stated goals.
Listed below are the 2020 commercial rebate programs and forms offered by ERMU. Rebates are
provided for equipment that is purchased and installed in 2020. Rebate funds are limited and are available
on a first-come, first -served basis. The maximum rebate per project will be limited to $20,000.
Chillers and Air Handling Rebate Application
Custom Efficiency Rebate Application
Custom Lighting Rebate Application
Electric Forklift Rebate Application
Electric High Frequency Charging Rebate Application
Energy Star Commercial Food Service Equipment Rebate Application
Fractional EC Motor Rebate Application
Geothermal Heat Pump Rebate Application
Lighting Retrofit Rebate Application
New Construction Lighting Rebate Application
PTAC, Mini-Split Water Source HP Rebate Application
Rooftop, Split System, ASHP Economizer Rebate Application
VFD and ASD Drives Rebate Application
At their January 22, 2019, meeting, the EDA approved the Economic Development Energy Incentive
program. The program allows the city to waive the applicable PILOT for an approved applicant and
redirect that amount as a credit distributed through the applicant’s monthly ERMU electric service bill for
up to two years.
The Energy Efficiency Improvements Loan is available to property owners of commercial or industrial
buildings in Elk River to provide low interest loans to businesses to invest in energy efficiency and
improve their profitability through reduced energy costs. In addition, the microloan program helps the
city of Elk River use energy conservation as an economic development tool. Applicants may apply for the
cost of improvements up to $74,999
Do these current rebate programs offered by ERMU and the EDA meet the needs of the business
community? Are there additional energy related rebates that the EDA is willing to consider?
Concern #9: Can there be a proactive approach to business development such as educating builders, contractors, owners
before a project is submitted?
Staff meets with pre-applicants to discuss new projects, or developments. This is an informal meeting
with staff to address the concerns and questions an applicant has prior to submitting an application for
formal review.
Business Retention and Expansion (BR&E) visits conducted by staff from economic development,
planning, environmental and engineering. It is at these meetings that we learn if a business is seeking to
expand, which gives us an opportunity to educate owners on the process.
Concern #9: Communications regarding process requirements for Building permits, Codes, Loan programs and
Ordinances needs to be timely, consistent, clear, transparent, and communicated up front, before excessive money is spent.
Staff met with Minneapolis planners regarding their Small Business Navigator Office. They redeployed
three staff people within the city development agency to the Small Business Navigator Office. The core
function of this department is to establish a phone number, e-mail, and a website for people to call and
ask questions on starting a business in the city. Their website, the Minneapolis Business Portal provides
entrepreneurs and business owners with valuable information and resources to plan, launch, and grow a
business
The City of Minneapolis also features a Business Technical Assistance program. The Business Technical
Assistance Program or B-TAP program was created to provide consulting support to businesses located
in the City of Minneapolis.
Through B-TAP, the city contracts with local non-profit organizations focused on entrepreneur training
and economic development to provide direct services to new and existing businesses.
The Organizational Chart for the City of Minneapolis
Concern #11: EDA/HRA Loan processes are cumbersome. Can they be simplified and expedited?
The Joint Finance Committee and the EDA completed the review of all loan programs and policies in
April of 2017. The application process was simplified for applicants.
Since 2017, the EDA approved the new Energy Incentive Program, updated the Jobs Incentive Program,
and is currently reviewing the Economic Development Business Microloan program.
The Authority should review the attached policies and provide direction to staff on policy changes within
each of the financial applications to ensure a smooth and efficient application process.
Concern #15: Some perceived that the personal agenda of a staff member can influence the way City process is interpreted.
The Comprehensive Plan and EDA Strategic Plan updates will provide clarification of EDA/Council and
direction for interpretation.
Concern #15: Shouldn’t it be a collective effort, or common goal, for staff and entrepreneurs to build and grow the business
community in Elk River together?
Realtor Day – Staff held Realtor Day on February 26, 2020. Nearly 50 realtors, brokers and developers
attended this event. This was an opportunity for realtors, brokers, and developers to hear about new
projects, development opportunities, and initiatives of the city. This has become an annual event in
partnership with the St. Paul Area Association of Realtors.
Developer Forums – Staff scheduled a developer forum on March 26, 2020, to educate local developers
on the Main/Gates redevelopment project. The forum was postponed due to the COVID-19 pandemic.
Similar types of developer forums have been held in the past educating the public on new development
opportunities.
Business Retention and Expansion (BR&E) visits conducted by staff from economic development,
planning, environmental and engineering, ISD #728, EDA Commissioners, Council Members, and
County Commissioners. It is at these meetings that we learn if a business is seeking to expand, which
gives us an opportunity to educate owners on the process.
Staff provides developers with an option to conduct a concept review with the City Council. This gives
developers an opportunity to present their project to the council and request feedback and direction on
their project.
Most recently, the EDA established the #TogetherElkRiver campaign, which is a partnership with the
EDA and the Elk River Area Chamber of Commerce. This marketing campaign was derived to assist
small businesses during the COVID-19 pandemic.
Financial Impact
N/A
Attachments
Chamber of Commerce Business Matrix Workplan
Mpls Small Businesses Star Tribune Article (December 18, 2016)
Economic Development Business Microloan Program (Updated 2017, Under EDA Review)
Jobs Incentive Loan Program (Updated 2020)
Tax Abatement Program (2017)
Tax Increment Financing (TIF) Application (2017)
Energy Incentive Program (2019)
Virtual Meeting of the Elk River
Economic Development Authority
Held at the Elk River City Hall
Monday, May 18, 2020
(Due to the COVID-19 Pandemic)
Members Present: President Dan Tveite, Commissioners Garrett Christianson, Matt
Westgaard, Nate Ovall, Jennifer Wagner, Jeff Hartwig, and Charlie
Blesener
Members Absent: None
Staff Present: Economic Development Director Amanda Othoudt, and Economic
Development Specialist Colleen Eddy
1. Call Meeting to Order
Pursuant to due call and notice thereof, the meeting of the Elk River Economic
Development Authority was called to order at 5:37 p.m. by President Tveite.
2. Roll Call
Dan Tveite
Garrett Christianson
Nate Ovall
Jennifer Wagner
Charlie Blesener
Matt Westgaard
Jeff Hartwig
3. Consider Agenda
Moved by Commissioner Wagner and seconded by Commissioner Ovall to
approve the agenda. Motion carried 7-0.
4. Consider Consent Agenda
Moved by Commissioner Christianson and seconded by Commissioner
Wagner to approve the following consent agenda:
4.1 April 20 and 29, 2020, Minutes
4.2 Check register as outlined in the staff report.
4.3 Balance sheet as outlined in the staff report.
4.4 Revenue/expenditure report as outlined in the staff report.
Economic Development Authority Minutes Page 2
May 18, 2020
-----------------------------
Motion carried 7-0.
5. Open Forum
No one appeared for Open Forum.
6. Public Hearings
There were no public hearing items.
7.1 EDA Strategic Plan Update
Ms. Othoudt presented the staff report. She introduced Tom Leighton, Economic
Development Specialist, Senior Urban Planner from Stantec Consulting.
Mr. Leighton reviewed his background experience. He also reviewed the work plan
and the Authority’s involvement in the plan as shown in his presentation.
Commissioner Blesener asked for more elaboration on Item 1.4 Focus Group
Sessions and Item 4.2 Business Community Workshop (Optional Task). He felt all
these audiences were important to the conversation and asked about the strategy to
engage people.
Mr. Leighton stated the focus group sessions are designed to get differing viewpoints
and would include audiences such as business owners and other groups He stated
Stantec has been developing alternative mechanisms for outreach due to COVID.
Commissioner Blesener asked if Stantec had a profile of the focus groups the
Authority should be considering.
Mr. Leighton stated it’s a collaborative effort. He said the Authority should not
worry about these being statistically representative, but he would want to make sure
key perspectives are at the table and provided examples related to manufacturing and
downtown.
Ms. Othoudt provided examples of other groups such as the school district, the
downtown business association, chamber of commerce, industry, service-related
businesses, developers, realtors, and brokers.
Mr. Leighton stated the Business Community Workshop would require an additional
budget allocation if the Authority wished to pursue it. He discussed the SWOT
analysis related to Elk River.
The Authority asked for informational material prior to the next meeting.
Economic Development Authority Minutes Page 3
May 18, 2020
-----------------------------
7.2 COVID-10 Small Business Emergency Microloan Program
Ms. Othoudt presented the staff report. She introduced city attorney Gina Fiorini.
Commissioner Wagner questioned if you have to apply for the loan to get the
property tax relief and why there is an employee requirement.
Ms. Othoudt stated one form was created for both programs as it was simpler to
administrate and the applicant could apply for either the loan and/or tax relief.
Ms. Fiorini stated this policy was modeled after other similar EDA policies noting
most want to target smaller businesses.
Chair Tveite stated he’d like to remove the employee requirement and have it applied
to the businesses forced to shut down due to the governor’s order.
Commissioner Wagner concurred and would suggest the requirement that they have
to be in business for six months prior to shut down removed.
Commissioner Westgaard questioned if we are wanting to target or eliminate a
certain demographic of business and that was a reason for having some of these
requirements.
Ms. Fiorini stated the requirement were based on what is typical for other EDA’s.
Commissioner Westgaard questioned if the requirement applies to a new business or
new ownership of an existing business, referencing the recent sale of Olde Main
Eatery.
Chair Tviete stated it is reasonable to say businesses had to be in operation prior to
the orders. He stated he would like to strike the employee requirement and keep that
a business had to be open prior the orders.
Commissioner Wagner concurred.
Commissioner Ovall felt having both programs lumped into one application is too
cumbersome for the property tax relief program, noting there are some requirements
that aren’t needed for this program.
Ms. Othoudt stated separate applications can be drafted. She stated it would be
helpful to clarify how the Authority will be measuring the property taxes to be
forgiven. She questioned if it would be the May or October tax payment.
Commissioner Blesener stated it should be for any taxes due in 2020.
Commissioner Ovall stated is should be the lesser of their 2020 annual property tax
due or $5,000.
Economic Development Authority Minutes Page 4
May 18, 2020
-----------------------------
Ms. Othoudt noted it could get a little tricky with leased properties, but the lease
agreements would have to be reviewed.
Commissioner Wagner asked for clarification about the policy language regarding the
program being on a first come first serve basis and funding to be provided until the
funds are exhausted or the declaration is lifted, whichever comes first.
Ms. Fiorini stated it is the Authority’s discretion on how they want to write the policy
and they could keep the program open longer.
Commissioner Wagner doesn’t think the economic disparity ends when the
emergency declaration changes and suggested changing the language to December
31, 2020 or until the funds are exhausted.
Chair Tviete thanked staff for the quick turnaround on this item and catching the
spirit of the Authority’s intent.
Moved by Commissioner Wagner and seconded by Commissioner Hartwig to
adopt Resolution 20-03 approving COVID-19 Small Business Emergency
Microloan Program with the following changes:
1. Eliminate number of employees’ requirement.
2. Change date of being in business to prior to the governor’s orders.
3. Striking city declared emergency from the timeframe.
Motion carried 7-0.
7.3 Director Report
Ms. Othoudt presented the staff report as outlined in the staff report.
Commissioner Wagner provided an update of the Together Elk River marketing
campaign.
8. Adjournment
There being no further business, President Tveite adjourned the meeting of the Elk
River Economic Development Authority at 6:29 p.m.
Minutes prepared by City Clerk Tina Allard
Dan Tveite, EDA President
Economic Development Authority Minutes Page 5
May 18, 2020
-----------------------------
Tina Allard, City Clerk
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional
service, and community engagement that encourages and inspires prosperity
Request for Action
To
Economic Development Authority
Item Number
7.1
Agenda Section
General Business
Meeting Date
June 15, 2020
Prepared by
Amanda Othoudt, Economic Development
Director
Item Description
Chamber of Commerce Business Survey: Concern
#11, #15
Reviewed by
Cal Portner, City Administrator
Reviewed by
Action Requested
• Receive information, provide feedback.
• Agree, by consensus, the action sufficiently meets or exceeds expectations to address
concerns/recommendations from the Chamber of Commerce Business Survey: Concern #11 and
#15.
Background/Discussion
Citing concerns regarding the business atmosphere experienced by developers with the city, the EDA
commissioned a survey through the Elk River Area Chamber of Commerce to identify specific concerns.
Two follow up meetings were held with participants of the survey with Commissioners Westgaard,
Wagner and Blesener. The information gathered was shared with the city administrator who developed a
workplan to address the concerns.
Staff will review all the concerns outlined in the workplan organized by department prior to the EDA
regular meetings scheduled in May, June, July, with a wrap up in August.
At their May 18, 2020, meeting, the EDA reviewed concerns #2 and #9 and directed staff to continue
the discussion for concern #11 and #15 at a future EDA meeting.
Concern #11: EDA/HRA Loan processes are cumbersome. Can they be simplified and
expedited?
The Joint Finance Committee and the EDA completed the review of all loan programs and policies in
April of 2017. The application process was simplified for applicants.
Since 2017, the EDA approved the new Energy Incentive Program, updated the Jobs Incentive Program,
and created a new COVID-19 Emergency Small Business Microloan program.
The Authority should review the attached policies and provide direction to staff on policy changes within
each of the financial applications to ensure a smooth and efficient application process.
One item to keep in mind is that the use of public financing tools requires public purpose and data
transparency by state law. The differences between a private application process through a bank or credit
union and local government are purposeful requirements to protect the taxpayer and limit their risk.
To assist the Authority in reviewing the applications, staff has attached similar policies from various
municipalities. It should be noted that each municipality has tailored their policies to fit the needs and
objectives of their own communities. Essentially, what works for one community, may not work for an
adjacent community. Some municipalities may not have Revolving Loan Funds, support Tax Abatement
or TIF projects.
City of Big Lake does not have a Revolving Loan Fund program however, they offer Tax
Abatement and TIF as financing options.
City of Anoka offers a tax abatement but does not offer a Revolving Loan Fund program.
City of Fairmont offers TIF, Abatement and has a Revolving Loan Fund program.
Lake City offers TIF, Abatement and has a Revolving Loan Fund program.
City of St. Cloud offers TIF, Abatement and has a Revolving Loan Fund program.
City of St. Louis Park offers TIF and a Revolving Loan Fund program.
City of Hutchinson offers a TIF and Abatement program in addition to a microloan program.
City of Hastings offers TIF and Tax Abatement and a Revolving Loan Fund program.
City of Shakopee offers TIF and Abatement, and a Façade Improvement program, but not a
general Revolving Loan Fund program.
City of Burnsville offers TIF and Abatement, but not a general Revolving Loan Fund program.
Concern #15: Some perceived that the personal agenda of a staff member can influence the way
City process is interpreted.
The Comprehensive Plan and EDA Strategic Plan updates will provide clarification of EDA/Council and
direction for interpretation.
City administrative processes are public information and subject to Council and Authority review and
amendment.
Concern #15: Shouldn’t it be a collective effort, or common goal, for staff and entrepreneurs to
build and grow the business community in Elk River together?
Staff developed an online tool in 2019 to assist new businesses that are opening or expanding in Elk
River. The guide provides a step-by-step guide that best fit the potential business looking to open. The
page also features a link to the Economic Development’s Business Toolbox, and guides for commonly
opened businesses. https://www.elkrivermn.gov/1602/Opening-a-Business
Realtor Day – Staff held Realtor Day on February 26, 2020. Nearly 50 realtors, brokers and developers
attended this event. This was an opportunity for realtors, brokers, and developers to hear about new
projects, development opportunities, and initiatives of the city. This has become an annual event in
partnership with the St. Paul Area Association of Realtors.
Developer Forums – Staff scheduled a developer forum on March 26, 2020, to educate local developers
on the Main/Gates redevelopment project. The forum was postponed due to the COVID-19 pandemic.
Similar types of developer forums have been held in the past educating the public on new development
opportunities.
Business Retention and Expansion (BR&E) visits conducted by staff from economic development,
planning, environmental and engineering, ISD #728, EDA Commissioners, Council Members, and
County Commissioners. It is at these meetings that we learn if a business is seeking to expand, which
gives us an opportunity to educate owners on the process.
Staff provides developers with an option to conduct a concept review with the City Council. This gives
developers an opportunity to present their project to the Council and request feedback and direction on
their project.
Staff shares trend information, peer city policies, programs and ideas with the authorities and council
from which the elected and appointed bodies develop their own goals, policies, and programs. In working
with developers and businesses, staff administers the policies and programs to meet the elected and
appointed official’s goals. Staff does not have nor use their own set of goals to grow business.
Most recently, the EDA established the #TogetherElkRiver campaign, which is a partnership with the
EDA and the Elk River Area Chamber of Commerce. This marketing campaign was derived to assist
small businesses during the COVID-19 pandemic.
Financial Impact
N/A
Attachments
Chamber of Commerce Business Matrix Workplan
City of Elk River EDA Financial Policies
Sample policies from various municipalities
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional
service, and community engagement that encourages and inspires prosperity
Request for Action
To
Economic Development Authority
Item Number
7.1
Agenda Section
General Business
Meeting Date
July 20, 2020
Prepared by
Suzanne Fischer, Community Development
Director
Item Description
Chamber of Commerce Business Survey: Concern
#3 and #4
Reviewed by
Amanda Othoudt, Economic Development
Director
Reviewed by
Cal Portner, City Administrator
Action Requested
• Receive information, provide feedback.
• Agree, by consensus, the action sufficiently meets or exceeds expectations to address
concerns/recommendations from the Chamber of Commerce Business Survey: Concern #3 and #4.
Background/Discussion
Citing undocumented concerns regarding the business atmosphere experienced by developers with the city, the
EDA commissioned a survey through the Elk River Area Chamber of Commerce to identify specific concerns.
Two follow-up meetings were held with participants of the survey with Commissioners Westgaard, Wagner and
Blesener. The information gathered was shared with the city administrator who developed a workplan to
address the concerns.
Concern #3: Clearly outline what is being inspected for the entire project and limit the inspection to that list. New items should
not pop up with every inspection.
There is no specific “list” of items to be checked for any particular inspection. The Minnesota State Building
Code includes seven code books. Project managers and their tradesmen are expected to not deviate from the
spirit of the codes. To facilitate communication, the following four practices have been implemented.
Citizenserve Community Development Software purchase and implementation. A demonstration will be
provided.
Formal Letters of Explanation. Following an inspection, the building inspectors document non-compliant
items identified along with the applicable code(s). This information is part of the record and is sent to the
applicants via email or letter.
Pre-Application Meetings. The city currently offers preconstruction meetings to further review plans and the
process with the project manager and whomever they wish to include. Our experience is very few choose to
participate. For those who choose not to participate, they will sign a waiver expressing their intent for the
public record.
Permit applications have more clearly detailed explanation of code requirements. Paper permits will be
replaced with the public portal and will include submittal requirements, handouts, and examples for
people to view (in the Permit Submittal table).
Concern #4: Clear written instruction including citing relevant code for each infraction. The remedy should be clearly
defined so there is less rework that needs to be done. This concern should be resolved with the
Citizenserve demonstration and formal letters of explanation.
Financial Impact
N/A
Attachments
Chamber of Commerce Business Matrix Workplan
Permit Submittal Requirement chart
Sample of Pre-Application Meeting acknowledgment
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and
community engagement that encourages and inspires prosperity
Request for Action
To
Economic Development Authority
Item Number
7.1
Agenda Section
General Business
Meeting Date
August 17, 2020
Prepared by
Zack Carlton, Planning Manager
Item Description
Chamber of Commerce Business Survey: Concerns
#1, #7, #8, #9, #10, and #13
Reviewed by
Amanda Othoudt, Economic Development Director
Reviewed by
Cal Portner, City Administrator
Action Requested
• Receive information, provide feedback.
• Agree, by consensus, the action sufficiently meets or exceeds expectations to address concerns /
recommendations from the Chamber of Commerce Business Survey.
Background/Discussion
Citing undocumented concerns regarding the business atmosphere experienced by developers with the city, the
EDA commissioned a survey through the Elk River Area Chamber of Commerce to identify specific concerns.
Two follow-up meetings were held with participants of the survey with Commissioners Westgaard, Wagner and
Blesener. The information gathered was shared with the city administrator who developed a workplan to
address the concerns.
Concern #1: If the city really wants to be known for supporting renewable energy, they should
reconsider their incentive programs to support projects that are in line with the stated objectives in the
Comprehensive plan: to be more energy efficient, preserve resources, even if it means ordinance or
design flexibility.
The city is in the process of updating the Comprehensive Plan. The first round of meetings and interviews with
community stakeholders took place on August 12 and 13. These meetings laid the groundwork for the
Comprehensive Plan update. The process will finish in mid-2021 with adoption of the new Comprehensive
Plan and action steps related to amendments and changes to city ordinances. If renewable energy goals are
again part of the plan, we will research necessary amendments to policies and ordinances.
Concern #7: Use the velvet glove approach when delivering requirements for compliance. Think of
the business owners as customers.
Staff prepares FAQs for common questions, but these are typically associated with residential uses as business
related questions are more nuanced and specific to each user and site. To address some of the common
business questions related to site and use, staff created the opening a business in Elk River page to help
prospective businesses in their search. https://www.elkrivermn.gov/1602/Opening-a-Business
Please review the website and contact us with recommended changes. We want this to be as informative as
possible, but not a substitute for conversations with city staff.
Council Review and Staff Authority
Staff has, and continues to, work with the City Council to streamline the Council/staff review. Council recently
adopted an ordinance amendment to the permitted and conditional uses for all commercial and industrial uses.
The goal of the amendment, among others, was to reduce the number of Conditional Use Permits required and
thus reduce approval time. Staff has also amended the landscape standards to provide more credits for existing
vegetation and discussed paving/curbing standards. Balancing community goals/aesthetics with business
opportunity will continue to be a goal for the Planning Division and City Council.
Concern #8: There is a need for balance between desire for beautification and business use of
property (storage, signage, etc.)
The balance between community goals and aesthetics and the business use of a property continues to be a topic
of discussion. When reviewing applications, staff works with the Council and the applicant to find a middle
ground when additional standards or changes are needed. When ordinance concerns are consistently brought to
staff’s attention, they are then presented to Council for their consideration and direction.
Concern #9: Develop a proactive approach to business development and educate builders,
contractors, and owners about ordinance standards, processes and timelines before a project is
submitted.
Pre-application meetings and work sessions
Staff is available for pre-application meetings requested by the developer or applicant. These meetings have
always been available and will continue to be available for every project and application (administrative site plan
reviews to CUPs, Plats, or variances). Additionally, the city recently began scheduling regular pre-application
meetings for the second Monday of each month. These meetings are in addition to the individual meetings.
They will provide applicants with an opportunity to meet with multiple departments and receive answers to
questions about planning, engineering, utilities, stormwater, etc.
When working with applicants on unique situations, staff also suggests work session discussions with the City
Council to provide clarification on ordinance standards, or to receive guidance on a potential change. A work
session discussion is an effective and efficient venue to receive feedback directly from the decision makers prior
to investing additional resources into drawings or renderings.
Review and Update Project Checklists
All land use applications are available online and include a checklist of items that may or may not be required
for a complete application. Staff recognizes that the application checklist is more extensive than most
applications will require. Few applications require an EIS for example but reviewing the list with applicants
helps identify the key items needed for their application. This is done during a scheduled meeting, a pre-
application meeting, and/or during a stop at the Planning counter. The goal is to receive sufficient and accurate
information for staff, the Planning Commission, and the City Council to make an informed decision about an
individual application. Many times, this is different for each project, but we make every attempt to work with a
willing applicant to identify required materials for submittal.
Concern #10: Communicate code enforcement activities in a professional and customer service
focused manner.
Enforcement of city ordinances and standards of approval for a Conditional Use Permit are an ongoing
process. Staff works to communicate violations in a consistent and professional manner. This includes letters to
a property or business owner to document the violation and, depending on the nature of the violation, staff will
stop in and visit with the business owner. A quick conversation will address simple violations quickly and does
not require a letter. Larger and more involved violations require additional time to address and are documented
to protect the city’s interests.
The violation and enforcement process has significantly improved with a streamlined process since
transitioning to CitizenServe in May of 2019. We follow a standard process to inform property owners of a
violation and seek to work with them to maintain or enhance the appearance of the community that aligns with
our ordinances. We have seen improved compliance with this process and have received relatively few
complaints. We continue to seek improvements to our processes and discuss ordinance amendments with the
City Council as needed.
Staff will also update the wrap on the Community Enhancement truck to reflect the current organizational
structure and goals of the division.
Concern #13: How can Planning and Zoning processes be streamlined and given more authority to
reduce timelines?
Permitting Requirements
Staff continually seeks methods to streamline the Planning and Zoning review process and eliminate permitting
requirements, however, we are limited by statutory and ordinance requirements. The biggest change to simplify
and speed-up the permitting process was approved by the City Council in March of 2018. Several less-impactful
conditional uses were reclassified to a permitted use in the commercial and industrial zoning districts. This
change allows many of the common businesses to be reviewed and approved by staff rather than going through
a public hearing process at Planning Commission and Council. The City Council also updated the landscaping
ordinance to give additional credit for existing trees and discussed paving and curbing standards.
Public Hearings
Elk River city codes currently require two public hearings when reviewing a land use application, but statute
only requires one. Statutory timing of the public hearing (Planning Commission vs. Council) depend on the
type of application being reviewed. Many cities only hold one public hearing during the Planning Commission
meeting. The City Council is still the approving authority, but that action could occur as a consent or general
business item. If the City Council decided to move to one hearing rather than two, the review process could be
reduced by two weeks in some cases, but the second public hearing has also shown to have value in the public
participation process. Staff will discuss this with the City Council during a future work session and take their
direction.
Review Timeline
The standard review timelines and specific dates are listed in every land use application and are communicated
up front with the applicants. The timing itself is dependent on the public notice requirements, staff review
times, and the public input process. Most applications are reviewed in 6 to 8 weeks depending on meeting dates
and accelerating this timeline may require moving meeting dates for the Planning Commission and/or the City
Council.
Concern #14: A review of the city fee schedule is needed both by comparison cities and philosophy.
(i.e. bldg. permit, sac/wac, utility deposits)
Staff continues to work on the fee comparison study, and we will bring that forward to the City Council on a
future work session.
Financial Impact
N/A
Attachments
Chamber of Commerce Business Matrix Workplan
Land Use Application Examples
Planning FAQ’s
Ordinance Sections Related to Design and Operation
Land Use Application Flow Chart – CUP Example
Meeting of the Elk River
Economic Development Authority
Held at the Elk River City Hall
Monday, August 17, 2020
Members Present: President Dan Tveite, Commissioners Garrett Christianson, Nate
Ovall, Jennifer Wagner, and Jeff Hartwig
Members Absent: Commissioners Matt Westgaard and Charlie Belesener
Staff Present: Economic Development Director Amanda Othoudt, Economic
Development Specialist Colleen Eddy, Planning Manager Zack
Carlton, and City Clerk Tina Allard
1. Call Meeting to Order
Pursuant to due call and notice thereof, the meeting of the Elk River Economic
Development Authority was called to order at 5:30 p.m. by President Tveite.
2. Pledge of Allegiance
Pledge of Allegiance was recited.
3. Consider Agenda
Item 7.3 was removed from the agenda.
Moved by Commissioner Wagner and seconded by Commissioner Ovall to
approve the agenda as amended.
Motion carried 5-0.
4. Consider Consent Agenda
Moved by Commissioner Ovall and seconded by Commissioner Hartwig to
approve the following consent agenda:
4.1 Minutes
June 15, 2020 Regular
June 29, 2020 Special
July 6, 2020 Closed
July 15, 202 Special
July 20, 2020 Regular
4.2 Check register as outlined in the staff report.
4.3 Balance sheet as outlined in the staff report.
4.4 Revenue/expenditure report as outlined in the staff report.
Economic Development Authority Minutes Page 2
August 17, 2020
-----------------------------
Motion carried 5-0.
5. Open Forum
No one appeared for Open Forum.
6. Public Hearings
There were no public hearing items.
7.1 Chamber of Commerce Business Survey
Mr. Carlton presented the staff report.
Commissioner Ovall encouraged staff to make phone calls prior to sending written
letters, which can seem more impersonal. He stated people remember how you made
them feel and further will relay their opinions to neighbors.
Commissioner Wagner concurred.
Mr. Carlton agrees when it comes to businesses, noting residential owners can be
more difficult to reach. He stated the initial letter is written softly to try an open a
conversation about issues.
Commissioner Christianson questioned how success would be measured in 6-9
months noting he would like to see feedback.
Commissioner Ovall asked the Chamber of Commerce and businesses to provide
feedback. He further asked for communication with regards to specific issues and
examples, such as if the city timeline seems wrong, then he’d like to see specific
examples from another city to see what their process is and how their timing is
different from Elk River.
Commission consensus was the issues have been addressed and follow up will be
continuous.
7.2 Together Elk River Campaign
Ms. Eddy presented the staff report.
Commissioner Wagner modeled the branded face gator.
Moved by Commission Ovall and seconded by Commissioner Hartwig to
approve an additional $950 to the Together Elk River Campaign.
Motion carried 5-0.
Economic Development Authority Minutes Page 3
August 17, 2020
-----------------------------
7.3 Public Art Contract with Milligan Studio
This item was removed from the agenda.
7.4 Strategic Plan
Ms. Eddy presented the staff report.
7.5 2021 EDA Budget and Resolution Establishing EDA Levy
Ms. Othoudt presented the staff report.
Ms. Eddy discussed the need for drone footage and an interactive ARC GIS based
program.
Commissioner Wagner questioned the return on investment and felt more
information was needed so she would like to see a demo about the drone program
before deciding.
Commissioner Ovall requested future discussion about the wetlands credit program.
He stated he is not sure how comfortable he is with using it and already having a
property in mind. He stated he would like to know what regulatory issues must be
considered, or if there is certain guidance on what to look for in acquiring a property
for wetland credit and allocation. He questioned if this is something that should be
opened to the community or if there are other properties that could use it verse
talking to only one property owner.
Moved by Commissioner Wagner and seconded by Commissioner Hartwig to
continue this item to the next meeting.
Motion carried 5-0.
7.6 Resolution Establishing 2021 Referendum Tax Levy as Approved by
Voters for Recreational Facility Leased to the YMCA
Ms. Othoudt presented the staff report.
President Tviete noted this was approved many years ago via voter referendum but
the Authority is required to approve each year.
Moved by Commissioner Wagner and seconded by Commissioner Ovall to
adopt Resolution 20-09 establishing the 2020 referendum tax levy as approved
by voters for a recreational facility to be leased to the YMCA.
Motion carried 5-0.
Economic Development Authority Minutes Page 4
August 17, 2020
-----------------------------
7.7 Director Report
Ms. Othoudt presented the staff report.
7.8 Covid-19 Small Business Emergency Microloan Program
Ms. Othoudt presented the staff report.
Commissioner Wagner expressed surprise that the CARES Act funds have been
identified for allocation and she questioned how it looks as she feels it is very
important to help businesses. She noted many businesses that did not qualify for this
program have seen a significant decrease in their revenues and are having to make
unexpected purchases for personal protective equipment, such as face masks and
plexi-shields. She asked if there is an opportunity to adjust the eligibility of the
program. She stated she was hoping the Authority could be reimbursed with CARES
funding.
Ms. Othoudt stated the loan program can be modified with the understanding the
Authority may not get CARES funds. She noted when the program was first created
the Authority knew they would be using their own funds. She questioned if the
Authority wanted to continue knowing the county has two programs available that
are robust. She stated the Authority would need to demonstrate a need for the
program extension.
President Tviete stated a lot of details need to be worked out if the program is to be
expanded. He is unsure at this point of the direction to go.
Commissioner Ovall stated he is fine with what is currently allocated but he would
be willing to review further if the Authority would qualify for some CARES
reimbursement. He noted there will be impacts for the 169 Redefine project, which
are currently unknown.
Commissioner Wagner stated there are many businesses who do not qualify for the
current loan program but are still hurting.
Ms. Othoudt stated the Authority needs to identify the businesses who would qualify
under an expanded program. She stated there are some options to measure need,
such as gross revenue/loss, but more work would be required on how to implement
it.
Commissioner Ovall questioned if there was any pattern for the 6 applicants who did
not get approval.
Ms. Othoudt stated it was retail and a gas station.
Commissioner Christianson stated he is fine with the original loan program not
knowing about the CARES reimbursement.
Economic Development Authority Minutes Page 5
August 17, 2020
-----------------------------
Ms. Othoudt stated she is not asking for more funding to be released but questioning
the business eligibility list.
President Tviete noted there is approximately $102,000 remaining in the loan fund
with three months into the program. He stated he would be open to getting some
recommendations on program expansion for businesses but limit it to the $200,000
already allocated unless CARE funding becomes available.
Commission consensus directed staff to come forward with a recommendation of
eligible uses.
8. Adjournment
There being no further business, President Tveite adjourned the meeting of the Elk
River Economic Development Authority at 6:32 p.m.
Dan Tveite, EDA President
Tina Allard, City Clerk