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05-18-2020 EDA MIN SPECIALC4 *1=1� --� EVirtual Special Meeting of the Elk River Rveri Economic Development Authority Held at the Elk River City Hall Monday, May 18, 2020 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 I . 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 4:32 p.m. by President Tveite. 2. Roll Call �� ■ Dan Tveite ■ Garrett Christianson ■ Nate Ovall ■ Jennifer Wagner ■ Charlie Blesener ■ Matt Westgaard ■ Jeff Hartwig 3. Chamber of Commerce Business Survey Ms. Othoudt presented the staff report. Concern# 2: Current rebate programs are insufficient to achieve the objectives of the stated goals Tom Sagstetter, Elk River Municipal Utilities, explained the various rebate programs and outlined the tools used to market them. Commissioner Blesener asked about the synergies between building, planning, and utilities staff. Mr. Carlton stated everyone connects during a site plan review for each project. He was unsure about the building permit process. Economic Development Authority Minutes May 18, 2020 Page 2 Commissioner Ovall stated it is difficult to make decisions when there isn't enough information to understand where inefficiencies could lay. \%—., Mr. Sagstetter stated there are program differences based on the customer, but they are in line with their competitors. Councilmember Ovall stated he would like to understand our competitive advantage. He knows ERMU reliability is excellent. Commissioner Blesener stated Concern #2 is related to Concern #1. He stated the person with this concern felt the city should be an innovative leader in energy programs if it truly is Energy City. Commissioner Wagner stated we really need to lay out the red carpet for green buildings if a developer is willing to bring in a green business. Commissioner Blesener stated ERMU has quite a few programs already with renewables and staff is asking if there is interest in exploring and developing rebate programs further. Chair Tveite stated he doesn't see anything the Authority is prepared to do additionally. He suggested it may be helpful to have ERMU put together a summary of their programs to pass onto applicants. Commissioner Ovall stated the perceptive comment is from one individual. He stated he likes the current programs and would be willing to explore more but is not sure what direction to pursue without more input. Mr. Sagstetter stated every city has its limitation noting some have more resources available to be more aggressive. Ms. Eddy further discussed other marketing materials. Commissioner Ovall questioned if the Authority would support further exploration as a line item in the budget. He suggested taking funds from the microloan program because they aren't being utilized as well. Chair Tveite concurred. Commissioner Ovall felt current programs are adequate but there is room for improvement. Commissioner Wagner concurred. She suggested it could be part of the comprehensive plan update scheduled later this year. P O/ E N E I e r NATURE] Econormc Development Authority Minutes May 18, 2020 Page 3 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? Ms. Othoudt outlined current approaches utilized by staff as noted in the staff report. Commissioner Christianson stated business retention visits are great when trying to capture expansion but asked how staff engages with builders new to the construction process in Elk River. Ms. Othoudt stated a meeting is scheduled with the builder and various staff such as planning, economic development, and building. Commissioner Christianson asked if this was sufficient. Mr. Carlton stated business cards are given to prospective developers and they are free to call at any time with questions. Follow-up letters are sent after meetings outlining the discussion and expectations. He stated staff is considering a 1-IN requirement for a pre -application meeting for large scale projects. He discussed setting aside a specific date and time each month for developers to visit and ask questions regarding their projects. Chair Tviete noted he experienced the city process when the Elk River Golf Course was considering construction of condos. He stated economic development staff acted as the liaison and scheduled the meeting with various staff. It was an incredibly helpful meeting, resolved a lot of questions, and laid things out very effectively for his group. He said it was a good experience noting staff does a good job He noted applicants will get good information if they reach out to staff. He stated you can't make everyone happy all the time and it is not our role to hand hold people through the whole process. Commissioner Wagner stated the site plan review meetings are a good process but the issues are occurring prior to them. She questioned if there could be a proactive approach to business development, such as educating builders/contractors. She read one comment that stated, "... if the city process was clear and well communicated there wouldn't be such a need for independent consultants." She stated business retention visits don't belong under Concern # 9 as they are not proactive. She asked if we could hold meetings a few times a year such as `Opening a Business in Elk River 101' type course. Mr. Carlton stated there could be a monthly meeting open and available for anybody 10-*N to attend and ask questions no matter where they are at in their business development process. He noted an `open a business' section was added to the city p011RE0 I NATUREI Economic Development Authority Minutes May 18, 2020 Page 4 website approximately a year ago. He stated it addresses the most common business types looking to locate in Elk River. He asked the Authority for feedback on those pages. Commissioner Blesener asked if a flowchart would add value noting the uniqueness and complexities with each application and the multitude of direction they would flow through the city process. Ms. Othoudt stated flowcharts are currently available and are being revamped. Commissioner Christianson asked if the website is known and advertised. Mr. Carlton stated marketing could be improved. Commissioner Blesener suggested sharing with other audiences such as the Chamber. Mr. Portner reviewed the flowcharts developed a few years ago. Ms. Eddy further noted other marketing materials staff utilizes about opening a business. Commissioner Wagner stated applicants feel there is so much time needed to get through the city process and it's not clear on the front end. She stated more work is needed for Concern #9. She stated the items summarized in the staff report do not meet the concerns of #9. Commissioner Ovall discussed general examples where communication occurred with the building or fire department for a project an applicant was considering. He stated there would be a preliminary conversation about what is required but when an application package is submitted, more information is required which costs money and delays projects. He stated moves have been made in the right direction, such as a summary letter paraphrasing the meeting outcome and next steps, but there is always room for improvement. 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. Chair Tviete called for a vote. He stated if the Authority votes yes, they are stating Concern #9 is not quite adequate, it's getting there, and it's in decent shape, but there is more work to be done. He stated if the Authority votes no, they feel the requirements for Concern #9 have been met. The vote was 6 yes and 1 no. Chair Tviete voted no and disagreed based on his personal positive experience. He doesn't disagree there is always room for improvement in communication. E EREI II TURE Econormc Development Authority Minutes Page 5 May 18, 2020 ----------------------------- Commissioner Ovall would like to see how it plays out over the next year. Concern# 9 (b): Communications regarding process requirements for Building_ Permits, Codes, Loan Programs and Ordinances needs to be timer, consistent, clear, transparent, and communicated upfront, before excessive money is spent. Commissioner Wagner stated more work is needed in this area. She stated she wasn't sure how the Minneapolis technical business program worked and related to Elk River. Ms. Othoudt stated Minneapolis has created a business navigator office with staff dedicated to assist new businesses one-on-one. Commissioner Wagner questioned if the Authority is looking to create a similar program in Elk River and how it would fit into the city process. Ms. Othoudt asked the Authority if they are interested in funding a similar type position or having a conversation with City Council to discuss further. Chair Tveite asked if Concern 9 (b) was consistent with Concern 9 (a) as it relates to the consensus decision made by the Authority. Consensus was yes. Concern #9 (b) was continued to another meeting for further discussion.. Commissioner Wagner stated it would be helpful to have more information from staff, for Concern #11. She stated there is a short summary in the staff report but doesn't show anything being accomplished. She stated it is asking the Authority to review the attached policies and provide direction to staff. Commissioner Wagner stated a tremendous amount of time is needed for Concern # 15 as it was the largest concern in the survey and likely can't be completed in an hour. She stated having the Council retreat may help with the discussion for #15. She stated some of the summaries in the Concerns were lacking in substance. She stated staff hasn't done a good enough job in the follow up work for the concerns. Mr. Portner stated policies are owned and approved by the Authority and the intent was for the Authority to review them to determine how they can be less cumbersome. He stated it would be helpful if the three commissioners who met with the survey group to discuss the issues could shed some light on what was cumbersome so those specific items could be pulled out and reviewed. Commissioner Wagner disagreed stating it is not on the three commissioners but rather the Authority as a group to review the policies. She stated she can't pinpoint what is cumbersome in each loan application because there are several. i� Mr. Portner stated the survey information provided to staff is incomplete and not helpful. He stated staff doesn't have enough information to know the direction that p 0■ E A E I I T NATURE Economic Development Authority Minutes May 18, 2020 Page 6 is expected to complete their work. He stated staff needs to know the specific issues raised by survey participants to be able to resolve the issues. He reaffirmed the Authority would review and approve the policies. Commissioner Blesener can clarify that the survey participants have relationships with banks numerous times for financial assistance and questioned how the application process for a bank loan compares to a city loan, which offers much smaller loan amounts. Chair Tviete noted the Authority's allotted meeting time is out and these items would be discussed at a future meeting. 4. Adjournment There being no further business, President Tveite adjourned the meeting of the Elk River Economic Development Authority at 5:35 p.m. Minutes prepared by City Clerk Tina Allard Dan Tveite, EDA President 4(f Tina Allard, City Clerk 10NERE1 I NATURE