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HomeMy WebLinkAbout2010.05.10 EDA Packet AGENDA CITY OF HUGO ECONOMIC DEVELOPMENT AUTHORITY MONDAY, MAY 10, 2010 8:30 AM 8:30 am 1. Call to Order 8:31 am 2. Roll Call 8:32 am 3. Approval of Minutes EDA Meeting of April 12, 2010 8:35 am 4. Health Source Chiropractic • Dr. Erik Carlson 9:00 am 5. Discussion on BR&E Implementation Projects and EDA Goals • Events, Marketing, Downtown, Business Breakfast 10:00 am 6. Update on Downtown Redevelopment 10:15 am 7. Report on Hugo Business Association Spring Savings Show 10:30 am 8. Adjournment HUGO Business Retention and Expansion Summary Report ort . , April 2010 Sponsnn: of • CONNEXUS) � XcelEnergy- cin, t-iHugo ENERGY rttfsOklli4t •T MAf Y�I'� Your Community Energy Partner LAKE AREA BANK Frientti Seronl Neighbivs Since I915 w.+.w..7nrlrw[: Premier y/s'B al an ��► &Associates,Inc. In collaboration with: UNIVERSITY OF MINNESO Department of Emptoyment Econ X 1 E \SIO lP.l'`^'j` '�r+��►�I^ dY and o�mic CflevjeloEsfmsrrs! 'y v Hugo Business Retention and Expansion Strategies Program Summary Report April 2010 Written by: Brigid Tuck University of Minnesota Extension Center for Community Vitality For more information about the Hugo BR&E Program contact: Rachel Simone City of Hugo Associate Planner (651 ) 762-6304 rsimone@ci.hugo.mn.us Bruce Schwartau Extension Educator in Community Economics University of Minnesota Extension 507-536-6308 bwschwar@umn.edu The University of Minnesota is an equal opportunity educator and employer. Hugo Business Retention and Sponsorship Expansion Program This program is sponsored by the City of Communities recognize that helping Hugo, the Hugo Economic Development existing businesses to survive and grow Authority, Connexus Energy, Xcel is a vital economic development Energy, Hugo Business Association, strategy. The Hugo Business Retention Lake Area Bank, Postal Credit Union, and Expansion Program (BR&E) is Premier Bank, Reimer Photo, and WSB designed to assist local businesses in and Associates. thriving and expanding in the city. While BR&E History the attraction of new businesses and new business start-ups are important The Hugo BR&E Leadership Team components of any economic development strategy, research has approved entering into the Business shown that forty to eighty percent of new Retention and Expansion Program after being accepted into the program by jobs are created by existing businesses rather than by businesses new to the University of Minnesota Extension. The community. first Leadership Team meeting took place in July of 2009. The Hugo BR&E Program is a comprehensive and coordinated Business Visits approach to assisting existing businesses. Visiting current businesses A total of 38 businesses were visited by and learning their concerns is only one volunteers during the business visitation component of the process. The BR&E phase. The Leadership Team and Task program builds awareness in the Force's goal was to visit an equally community of issues that face representative sample of businesses businesses and builds capacity for the from each major industry classification community to address these issues. in Hugo. Businesses were selected The program also assists local leaders randomly from within each classification. and community members in working together to provide solutions to business During the months of October, concerns. November and December of 2009, the Objectives Leadership Team, Task Force and Volunteer Visitors conducted the The Hugo BR&E Program has five business visits. The teams had initially objectives: identified 70 businesses for visitation. 1. To demonstrate support for local Visitors worked in teams of two and took businesses responsibility for arranging and 2. To help solve immediate business conducting the interviews. concerns Warning Flag Review 3. To increase local businesses' ability to compete in the global economy After the surveys were completed and 4. To establish and implement a plan returned, the Task Force met to review for economic growth and each survey and decide how to handle 5. To build community capacity to the immediate follow-up. The Warning sustain growth and development. Flag review is designed to identify and ©2010 Regents of the University of Minnesota. All rights reserved. 1 deal with immediate issues or problems The Task Force reviewed and discussed discovered during the survey process, the potential projects and developed without the need to wait for formal new projects. In the end, the Task analysis of the survey data. Prompt Force established and adapted four attention to issues raised, even when priority projects. These priority projects the issues may be intractable, creates a are featured in this report. positive response from survey participants and builds good will. Following the Task Force Retreat, the individual project committees met to Research Report Development discuss methods for implementing the projects. Lisa Hinz, University of The BR&E Leadership Team sent Minnesota Extension, helped provide copies of the surveys to the University of leadership at this follow-up meeting. Minnesota for tabulation and analysis. The project committees will continue to A summary of the data was prepared for meet. If you have ideas, time, or other the January 7, 2010 state research talents to contribute to these projects, review meeting, where a team of fifteen please contact one of the people listed. individuals (listed later in this report) Your participation would be appreciated. reviewed the results and suggested projects that might respond to the People in the Hugo BR&E businesses' needs. Brigid Tuck then Program prepared the Research Report based on the input of the state research review panel as well as economic development Leadership Team expertise. Overall Coordinator- Rachel Simone, The Research Report identifies four City of Hugo overarching strategies that Hugo could Associate Overall Coordinator- Shayla adopt to address general issues reported by the businesses. The Syverson, City of Hugo Research Report then provides a list of potential projects under each of these Business Resource Coordinator- Beth Jameston, Department of Employment strategies. The Task Force has the knowledge of the community and what and Economic Development projects are suited locally. The potential projects are only suggestions for the Milestone Meeting Coordinator- Pat community to consider. Nygaard, Hugo Community Leader Task Force Retreat Visitation Coordinator- Galen Carlson, Hugo Business Owner A five-hour Task Force retreat was held on February 8, 2010 in Hugo. At this Media Coordinator- Deb Barnes, The retreat, the Task Force was presented Citizen Newspaper the Research Report. The presentation Hugo BR&E Task Force included an overview of the Hugo and Washington County economy and demographic changes, the composite Many community leaders participated as results of the business surveys, and the Task Force members. This group four strategies. visited businesses, addressed warning flag issues, set priorities for action and will assist in implementing the chosen ©2010 Regents of the University of Minnesota. All rights reserved. projects. Task Force members (listed Margo Geving, Hugo Good Neighbors below) also participated in business Food Shelf and Forest Lake Area visits. Schools Brant Gustafson, Postal Credit Union Matt Alexander, Kraus-Anderson Dennis Hegberg, Washington County Jan Arcand, Hugo Economic Commissioner Development Authority & Oneka Ridge Joe Houle, Premier Bank Golf Course Beth Jameston, Washington County Duane Arens, Connexus Energy WorkForce Center Bridgett Backman, Century College Phil Klein, Hugo City Councilmember Deb Barnes, The Citizen Newspaper Jim Leroux, Former Hugo City Bryan Bear, Executive Director of the Counciimember Economic Development Authority and Mike Lovett, Superintendent, White Bear Community Development Director Lake Area Schools Duane Bengston, Hugo Community Steve Marier, Hugo Feed Mill Leader Larry Martini, Business Services, Forest Duane Berg, Wilson Tool Lake Area Schools Karyn Berg, Ramsey County WorkForce Mary McNellis, St. Croix Real Estate Center Mickey Michlitsch, Sertinos Cafe Jim Bever, Hugo Economic Pat Nygaard, Hugo Community Leader Development Authority and Bever Pete Pederson, Former Hugo Parks Landscaping Commissioner Karen Bever, Bever Landscaping Frank Puleo, Lebens Flower Shop and Lenore Birch, White Bear Lake Area former Councilmember Schools Kerstin Quigley, Lake Area Bank Patti Breen, Northern Lights Pediatrics Katie Riopel, Katie's K-9 Obedience Galen Carlson, North Country Auto School and Hugo Lions Club Body Denny Route, Hugo Lions Club Shelly Clasen Tesser, Administrative Julie Route, Hugo Lions Club Intern, City of Hugo Matt Dean, Minnesota House of Keith Ryskoski, Superintendent, Stillwater Area Public Schools Representatives Bruce Sayler, Connexus Energy Bob Dettmer, Minnesota House of Molly Seidl, Kraus-Anderson Representatives Steve Seidl, Kraus-Anderson Sharon Dierkhising, Hugo Community Rachel Simone, Associate Planner, City Leader of Hugo Deb Drake, Hugo Community Leader Kris Emerson, Hugo Good Neighbors Shayla Syverson, Economic Food Shelf Development/Parks Intern, City of Hugo Randy Engelmayer, Country Financial Nikki Walters, Sun Barn Farms and Wild Wings of Oneka Michael Ericson, City Administrator, City Tom Weidt, Hugo City Councilmember of Hugo Angie Fromm, Guys and Dolls Salon Businesses Visited Mike Gallivan, Gallivan Insurance Thirty-eight businesses were visited during the BR&E process. The ©2010 Regents of the University of Minnesota. All rights reserved. 3 community greatly appreciates their served as the BR&E consultants for the willingness to help the community Hugo BR&E program. This included understand their needs. Their survey coaching and advising the local responses are confidential yet it is Leadership Team, conducting Volunteer important to credit their participation by Visitor training with the Task Force, listing their names here. assisting the Leadership Team in business selection, facilitating the American Legion Warning Flag review meetings, and Bald Eagle Sportsman Association participating in the State Review Panel. Carpenter's Steak House Chips Computer Service State Research Review Panel Cornerstone Chiropractic Country Video The panel reviewed the tabulated Discovery Financial Brokerage survey results and suggested potential Kurt Grainger Enterprises actions that might be taken by Hugo Gene's Disposal Service leaders in response to local firm Grundhofer's Old Fashion Meats concerns. The participants of the Gunner Construction January 7, 2010 meeting were: Health East Hugo Clinic Hugo Chiropractic Minnesota Department of Employment JL Schweiters Construction and Economic Development: JT Services Inc • Ed Dieter Katie's K-9 Obedience School • Gene Goddard Key Automotive KWIK Trip University of Minnesota: Lake Area Bank • Michael Darger, Extension Lametti & Sons Inc • Liz Davis, Applied Economics Los Ninos Spanish Preschool • Lee Munich, Humphrey Institute Manomin Resawn Timbers . Bruce Schwartau, Extension Oneka Pet Resort . Brigid Tuck, Extension Oneka Ridge Golf Course . Ward Nefstead, Applied Economics Premier Banks Reimer Photo Hugo Task Force: Sertinos Cafe • Duane Arens Subway Bryan Bear TGK Automotive . Karyn Berg The Citizen • Galen Carlson The Fry Group Trepanier Stucco LLC Michael Ericson • Rachel Simone US Bank White Bear Trailer Works • Shayla Syverson Wild Wings Game Farm Wilson Tool Withrow Elementary School Woodrunn Horse Boarding Consultants Bruce Schwartau and Liz Templin, University of Minnesota Extension, ©2010 Regents of the University of Minnesota. All rights reserved. 4 Hugo's Economic and Hugo BR&E Survey Results Demographic Profile Following are the results of the survey of A profile of Hugo's economy and the 38 businesses visited. The demographics was prepared for the businesses' characteristics are Research Report and presented at the summarized first followed by priority Task Force retreat on February 8th. projects selected by the Task Force. The profile was created and written by Survey results related to those projects Rachel Vilsack of the Minnesota are included in this summary. Additional Department of Employment and survey results including four strategic Economic Development. The profile themes are in the Research Report. contains statistics on population, employment, income, commuting and Characteristics of Businesses Visited labor sheds, occupations and educational attainment. Eighty-four percent of the businesses that participated in the Hugo BR&E A full copy of the profile can be viewed survey are locally controlled, shown in in the Research Report which can be Figure 1. obtained by contacting Rachel Simone, City of Hugo, at (651) 762-6304. Figure 1 : Business Ownership No Response Branch 5% 8% Franchise �? 3% Locally Owned Operated, p . � �, •:..��, � Locally Multiple =„ n.n Locations Owned / a a ... Operated, One Location 76% ©2010 Regents of the University of Minnesota. All rights reserved. 5 Seventy-six percent of the participating the businesses surveyed intend to businesses are locally owned with one decrease their work force in the next location and eight percent are locally three years. Roughly one-fifth of owned with multiple locations. One businesses expect to add employees in conclusion that can be drawn from these select job categories in the next three results is that many decisions regarding years. Hugo businesses are made locally. Overall, the survey results indicate that The businesses visited employ a total of businesses in Hugo are hopeful for the 599 full-time employees and 224 part- future. As shown in Figure 2, only one time employees. Overall, employment of the responding businesses indicated is down 220 jobs from three years ago. that they are considering closing and Full-time employment is down 324 jobs none are contemplating downsizing. while part-time employment is up 64 Nearly a quarter of the businesses (24 jobs. This downturn is consistent with percent) are considering expanding at the economic recession experienced in their current location and another the United States during this time thirteen percent in another location. The period, although it looks like the majority of businesses indicated they participating Hugo businesses took a were not currently considering any harder hit. Businesses appear to changes. believe that the recession's effects are waning for their businesses. None of Figure 2: Future Plans No Changes Planned !€ ' Pa i Expanding at This Location i Other Changes Expanding at Another Location Merging Moving j Selling I Closing 1 1 Downsizing l 0 2 4 6 8 10 12 14 16 ©2010 Regents of the University of Minnesota. All rights reserved. 6 Finally, businesses report Hugo as a 4. Address Highway 61 Access Issues good place to live. On a scale of 1 to 5, and Improve Downtown Hugo 5 being "excellent" and 1 being "poor", the average response to the question Priority Project#1: Market the "What is your overall opinion of Hugo as City of Hugo a place to live" was 4.16. A similar question, "What is your overall opinion Increased exposure can help of Hugo as a place to conduct business" businesses generate profits. Exposure earned an average of 3.79. to consumers, to other businesses, and to new business opportunities, for Overview of BR&E Projects for example, can all provide businesses Hugo with avenues to generate more revenue and greater profit. For some Profits are the key to the retention and businesses, the highest priority is direct expansion of firms. While the owners of exposure, through advertising or a business might be attracted to a place promotion, to the individual consumer. because it is a nice place to live or raise For other businesses, it's paramount to a family, a business can only survive if it gain exposure to other businesses that makes a profit. The same is the case may present an opportunity for for businesses that start in the business-to-business sales. Hugo community. The owners may be loyal to businesses could profit from greater the community, but if they cannot make exposure of the City of Hugo itself. their business profitable they will close or move it; they do not have a choice. Related Survey Results In a market economy, making a profit is Businesses in Hugo value small town the responsibility of business atmosphere and charm. When asked to management and its employees, not rate from a list of community features community groups, local or state which features have a positive impact, governments. However, the actions of no impact, or a negative impact on their these groups can sometimes help business, Hugo businesses awarded businesses become slightly more "small town atmosphere" an average of profitable. The priority projects outlined 1.34 (2.0 = very positive impact; 0 = below are aimed at helping businesses neutral), making it the most highly rated become more profitable and thus be community feature. "Freeway access" able to survive and grow in the (1.13) and "festivals and events" (0.79) community. rounded out the top three community features. None of the eighteen features Hugo BR&E Priority Projects received a negative score. The following four priority projects were Project Plans from the Committee: selected at the Task Force retreat held This project is based on several in Hugo on February 8, 2010. potential marking strategies that all 1. Market the City of Hugo relate to the City of Hugo and its 2. Create, Coordinate, and Encourage businesses. Each item falls under an idea for a marketing plan for the City Events that would consist of public relations, 3. Host Business and Breakfast advertising, and sales. There were Workshop(s) ©2010 Regents of the University of Minnesota. All rights reserved. 7 several indications within the BR&E Priority Project #2: Create, surveys that suggested that businesses Coordinate, and Encourage wanted help promoting their business Events with an emphasis on advertizing. Over the next several months the project Businesses thrive in attractive team will be working on putting together communities. These attractive a marketing plan for the City and communities have amenities and incorporating ways to help the opportunities that draw resources the businesses in Hugo. The marketing plan businesses require. These resources will also help recruit new businesses can be quite varied, ranging from quality into the City. Some of the goals for the employees to tourists to developers to marketing plan include a City slogan, complimentary businesses to multimedia campaign, visitor guidebook, infrastructure. Businesses need these and tradeshows. The project team resources to be successful and suggested that the City partner with the profitable. Events could potentially help local business associations to put the City of Hugo be more attractive. together portions of the marketing plan for the City. Related Survey Results This committee will be led by Rachel Responding businesses perceive Hugo Simone, Tom Weidt, Louis Melamed, as a great place to live. When asked to Bridgett Backman, Gretchen Boyd and rate their overall opinion of Hugo as a Michele Tesser. place to live, where 1 equaled "poor" and 5 equaled "excellent', businesses gave Hugo an overall score of 4.16 or "very good", see Figure 3. Figure 3: Overall Opinion of Hugo As a Place to Live 1=Poor 2=Fair 0% 5% 3=Good -_ ?� 16% c �< 5=Excellent 4=Very Good 37% ©2010 Regents of the University of Minnesota. All rights reserved. 8 option. Creating and expanding trails to No business responded that Hugo was encourage biking, hiking, skiing and a "poor" place to live. running would draw outside visitors to Hugo. Encouraging healthy family- Businesses were asked if certain friendly activities would benefit the life- community features had a positive styles enjoyed in Hugo. The residents impact (+2), no impact (0), or a negative of Hugo support community events and impact (-2) on their business. The there is the potential for additional community features having the most offerings which promote local positive impact were small town businesses. atmosphere (1.34), freeway access (1.13), and festivals or events (0.79). This committee will be led by Shayla The community features having the Syverson, Patti Breen, Mike Gallivan, least positive impact were lodging Kate Riopel, and Duane Berg. facilities (0.03), museums and historic sites (0.11) and meeting facilities (0.32). Priority Project#3: Host Business and Breakfast Workshop(s) Project Plans from the Committee: Profitable businesses tend to have This project consists of supporting efficient, knowledgeable, and skilled existing events and brainstorming owners, managers and employees. A additional events that have an economic business owner must not only have a impact on Hugo. Hugo has several marketable product, but also the skills existing community events which are and abilities to bring that product to well-planned and have grown in the last market at a profit. Trained and skilled few years. These events have been employees can assist business owners developed and promoted by in achieving that goal. Business and organizations such as the Lions Club, Breakfast Workshop(s) would give local Hugo Business Association, Oneka PTA business owners an opportunity to be and other community groups. One of the exposed to training opportunities and most well known community events to other resources as well as to information support is Hugo Good Neighbor Days. about City activities. The project team will work with the Lions Club to further promote and expand this Related Survey Results event. The project team will encourage the organizers of existing community events to coordinate with businesses Overall, businesses in Hugo appear to and take advantage of opportunities for be satisfied with the quality and business promotion. availability of the labor force in and around Hugo. When asked to rate their The project group will also brainstorm employees with respect to their attitude other events, as a part of a two to three towards work and their productivity on a year plan. A number of very exciting scale, where 1 equaled "poor" and 5 possibilities have already been equaled "excellent", the average score discussed: a park bonfire, sledding for both attitude and productivity was party, pet fest, music in the park, golf 4.4. No business rated employees as tournament and triathlon. Also, either poor or fair with respect to either developing a charity motorcycle run to of these measures, as evidenced in draw a large contingent of motorcycle Figure 4. enthusiasts to local businesses is an ©2010 Regents of the University of Minnesota. All rights reserved. 9 Figure 4: Employee Attitude 2=Fair 1=Poor 0% 0% 3=Good -- 12% ^....... anx:a:;a:m:e:�e a-V:aa: 5=Excellent ........_:--a�=�=:`........... =E w K.= = 550% w _ 4=Very o =Y=- € = €w_.__ 4-Ve Good _::_.an. 33 iE3?9Ei1:'E .. .;EEE....._._..-..__....==3 .W.EE iEEa:WC_::=Za:aZC__a=aaat. This committee will be led by Mike Project Plans from the Committee: Ericson, Duane Arens, Bruce Sayler, Galen Carlson, and Mickey Michlitsch. This project is based on the survey results that stated businesses wanted Priority Project #4: Address ways to network with each other. The Highway 61 Access Issues and project team recommended having a Improve Downtown Hugo business breakfast workshop with a speaker and a time to socialize. The ,lust as loving a community does not business and breakfast can be thought ensure profitability for a business; of in many forms, for example, brunch, profitability does not ensure a business lunch and dinner socials. One of the will remain loyal to a community. main ideas was having an annual "State Businesses may also consider a host of of the City" speech from the Mayor of factors when deciding to remain in a Hugo and also bringing in County and community or to move to another. State officials in to speak to the Businesses need quick, easy access to business owners. This would give an their businesses for both their opportunity for the businesses to customers and their suppliers. They interact with their local, County and may also prefer to be located in a State officials. The project team will be community with an attractive, thriving brainstorming over the next few months downtown. on how to accomplish their goals to provide a new way for businesses to Related Survey Results network and exchange information with their officials. Businesses appear to have mixed opinions of Hugo as a place to do business. ©2010 Regents of the University of Minnesota. All rights reserved. 10 Figure 5: Overall Opinion of Hugo As A Place to Conduct Business 1 =Poor 2=Fair 5=Excellent 0% 11 % 21 % 3=Good o 4=Very Good 47% Businesses were asked to rate Hugo as group was presented with the a place to conduct business on a scale Memorandum of Understanding for where 1 equaled "poor" and 5 equaled Highway 61 between the City, "excellent". The average score for the Washington County and the State of businesses' responses was 3.79. This Minnesota on the access to the translates into a rating between "very highway. This was something the good" and "good", which is slightly lower members did not previously know about than the score typically seen in other and will learn more about as the project communities. Responses to the team meets. question are shown in Figure 5. Within the survey there were three retail However, businesses are also being factors that were chosen as the most attracted into Hugo. One of every three important to be improved. These three responding businesses started in were variety of businesses, exterior another community and moved into atmosphere, and variety of places to Hugo. eat. This project team will also be working on tasks to improve the Project Plans from the Committee: downtown by eliminating blight and attracting new businesses with an This project started because access to emphasis on quality. As the project Highway 61 was identified as a concern team meets there will be an outline of businesses located in the downtown created on how to implement the goal of area of Hugo. They wanted to make improving the downtown area. sure that there was adequate access to their businesses as the highway is This committee will be led by Bryan improved. At the implementation Bear, Jan Arcand, Steve Marier, and meeting on February 16, 2010, the Richard Fischer. ©2010 Regents of the University of Minnesota. All rights reserved. 11 ♦ AAA ♦ The Task Force selected the priority projects. This summary report was prepared by Brigid Tuck, University of Minnesota Extension Center for Community Vitality, Community Economics. Editorial assistance was provided by Bruce Schwartau and Michael Darger of University of Minnesota Extension. Task Force members also contributed to this report. In accordance with the Americans with Disabilities Act, this material is available in alternative formats upon request. Please contact Brigid Tuck at 507-389- 6979 or email at tuckbumn.edu. University of Minnesota Extension is committed to the policy that all persons shall have equal access to its programs, facilities, and employment without regard to race, color, creed, religion, national origin, sex, age, marital status, disability, public assistance status, veteran status, or sexual orientation. ©2010 Regents of the University of Minnesota. All rights reserved. 12