Loading...
HomeMy WebLinkAboutEDA Packet 09.18.18AGENDA CITY OF HUGO ECONOMIC DEVELOPMENT AUTHORITY TUESDAY, SEPTEMBER 18, 2018 5:00 PM 5:00 pm 1. Call to Order 5:01 pm 2. Roll Call (Denaway, Gallivan, Houle, Klein, Petty, Puleo, Weidt) 5:02 pm 3. Approval of Minutes • EDA Meeting of August 21, 2018 5:03 pm 4. Discussion on BR&E Program Options • Chris Eng, Washington County CDA 6:00 pm 5. Update on Downtown Redevelopment 6:30 pm 6. Adjournment BACKGROUND MEMO FOR THE EDA MEETING OF TUESDAY, SEPTEMBER 18, 2018 3. APPROVAL OF MINUTES Staff recommends approval of the minutes from the August 21, 2018, EDA meeting as presented. 4. DISCUSSION ON BR&E PROGRAM OPTIONS Over the last few months Chris Eng has helped the EDA and staff complete an Economic Development Work Plan. The work plan has action steps and deliverables. One of the goals is to explore options for a business retention and expansion (BR&E) program. The City completed a BR&E program in 2010. Staff included the executive summary and ripple effect map from the 2010 program for the EDA to review. Chris Eng will present the EDA with options of how a new program can be organized and implemented. Staff recommends the EDA provide comments to staff on the options. 5. UPDATE ON DOWNTOWN REDEVELOPMENT Staff will provide an update on downtown redevelopment at the meeting. MINUTES FOR THE EDA MEETING OF AUGUST 21, 2018 Weidt called the meeting to order at 5:02 pm. PRESENT: Houle, Klein, Petty, Puleo, Weidt. ABSENT: Denaway, Gallivan. STAFF: Rachel Juba, Community Development Director Pierre Giguere, Community Development Intern APPROVAL OF MINUTES FOR THE EDA MEETING OF JULY 17, 2018 Klein made a motion, Petty seconded, to approve minutes for the EDA meeting of July 17, 2018. All Ayes. Motion carried. CITY OWNED PROPERTY CONCEPT Juba introduces Jenifer and Chris Cosgrove, who are the owners of Cozzie's Tavern and Gill along Highway 36, near Stillwater. Cozzie's is a restaurant intended to serve as a "meeting place" for locals and offers outdoor activities including corn hole tournaments and volleyball in the summer and ice hockey in the winter. Juba mentioned that the Cosgroves had been meeting with staff over the course of about a month to discuss their interest in the City owned property located just east of Highway 61. Juba introduces the concept plan submitted by the Cosgroves. The concept plan shows the location of the new Cozzie's building, location of the volleyball court, hockey rink, as well as a barn silo style tiki bar. The concept also depicts a parking lot as well as the possible location of an ice cream shop. The commission invites the Cosgroves to the podium. Mr. Cosgrove states that the Cozzie's located in Stillwater is reaching its third year of operation and that he and his wife would like to open a second Cozzie's on the City owned property within Hugo. The Cosgroves explain that Cozzie's would be a perfect fit for the City of Hugo. They envision an active yet cozy environment in which their guests can hang out and socialize while enjoying good food. President Weidt states that Cozzie's would be a great fit for the City of Hugo and it is something the City would like to see. Weidt also mentions that restaurants have been requested by many residents for a number of years. Commissioner Puleo agrees with President Weidt and states that locals living within Hugo have voiced their desire for new restaurants. Commissioner Petty asks the Cosgroves if they are planning on having an expansion plan for the establishment if it is successful. Mr. Cosgrove states that although a private space will be implemented into the building, they do not intended on creating an event center within the restaurant and would like to keep the building within the range of 4,800 square feet. Mark Youngdahl approaches the podium. Youngdahl is assisting the Cosgroves with the process of developing the new proposed development. Youngdahl presents the first draft of elevations meant to show what the building may look like when completed. Youngdahl presents a 360° view of the elevation concept and explains that the elevations are not meant to represent the finished product, rather it is meant to show the commission and staff what the Cosgroves may have in mind as the process advances. Commissioner Klein mentions that he likes the style of the building and its "barn -like" appearance. Youngdahl states that the best way to categorize the style of the presented building would be a Midwest rural vernacular style. Youngdahl also explains that the style of the building is an aspect that should not be overlooked. Blending styles to create a building that fits into its surrounding environment while maintaining architectural originality is a must. Juba discusses the City's development criteria and states that in order for the Cosgroves to be able to purchase the City owned property for its listed price of $1, they must follow specific use and design guidelines. Juba states that so far, the Cosgroves remain within the City's guidelines and are encouraged to continue to follow these guidelines. Juba recommends that a purchase agreement be drafted between the Cosgroves and the City which could then be approved by the City Council. Juba then recommends that the drafting of a purchase agreement between the Cosgroves and the City be approved by the EDA Commission. Puleo makes a motion, seconded by Klein, to approve the drafting of a purchase agreement between the Cosgroves and the City. All Ayes. Motion carried. DISCUSSION ON ECONOMIC DEVELOPMENT WORK PLAN Chris Eng approaches to podium. Eng introduces the most recent draft for the City's Economic Development Workplan, which consist of 6 goals as well as action steps and deliverables on how these goals will be achieved. These goals include creating an infrastructure and concept plan for 165th Street and Highway 61, promoting downtown development and redevelopment opportunities, updating Hugo's EDA website, creating and maintaining and business resource list, meeting with property owners and creating an inventory of potential development sites, and exploring options for a business retention and expansion program. Commissioner Petty states that a local business list which the City could use to contact local businesses and notify them of development opportunities would be very useful for both the City and local business. Eng agrees and states that he can add this aspect to the Workplan. Eng also states that the deliverables should be completed by the years end and that progress and results will be reported to City staff. President Weidt states that he likes the list of goals and that he hopes this draft will continue to development into a useful tool which can be used by the City to enhance its economic development. DISCUSSION ON ALTERNATE EDA MEMBERS Giguere introduces the use of alternate members within the EDA. Giguere explains how the EDA is organized as well as the duties of the EDA as a Commission within the City. Giguere then explains that although the current EDA bylaws mention the organization and duties of the EDA, they do not mention the use of alternate members. The main purpose of an alternate member would be filling in for absent members during meetings. When filling in for absent members, an alternate members would assume all powers held by an EDA Commissioner. Alternates would also be encouraged to attend all meetings in order to remain informed about what is going on within the Commission as well as be prepared to fill the seat of an absent member. At times when there are no absent members, the alternate member would still sit at the Dias with the Commission and discuss topics. However, alternate members can only vote when filling in for an absent member. Commissioner Houle questions the need for alternate members and their ability to vote in the absence of EDA members. Commissioner Petty suggests that instead of appointing alternate members, the EDA should adopt rules in terms of attendance to encourage all members to attend meetings. Juba explains there is a need for an alternate member because there is almost always an absent member during meetings and that discussions would have greater context if all members were present. Therefore, an alternate member could increase the number of members at the meeting. Juba suggests that the EDA approve the EDA resolution revising EDA bylaws to allow the use of alternate members. Puleo makes a motion, seconded by Klein, to approve the EDA resolution revising EDA bylaws to allow the use of alternate members. All Ayes. Motion carried. UPDATE ON DOWNTOWN REDEVELOPMENT Juba delivered an update on the TGK Automotive repair project. TGK has recently broken ground on their site and construction is underway. Juba also mentions that O'Reilly Auto Parts currently as applied for a building permit. ADJOURNMENT Commissioner Klein made a motion, seconded by President Weidt to adjourn at 6:35 pm. All ayes. Motion carried. al memo Hugo EDA BR&E Program To: Rachel Juba, Bryan Bear From: Chris Eng Date: August 30, 2018 Re: BR&E Options for Discussion and Consideration There are a number of reasons for undertaking a BR&E program. Here are a few: To demonstrate support for local businesses (an opportunity to connect the community with the businesses) 2. To identify and potentially assist in addressing any immediate business concerns (identify any red flag warnings) 3. To establish and implement future EDA work plan action steps (identify priority projects), and 4. To build community capacity to promote business growth and economic development (evaluate results, distribute results, build a marketing and promotional program around the results). It would be important to identify the priorities of the EDA Members and determine what they are looking for in order to best meet their objectives in creating a BR&E Program. Depending on the objectives of the EDA, here are some possible options (for preliminary discussion purposes) to undertake Business Retention and Expansion (BR&E) program in Hugo: 1) University of MN Extension BR&E Program (recently renamed The Connecting Businesses and Communities Program). Here is the link for this option: https:Hdrive.google.com/file/d/lBfhBi235jOfAFavmQTSyl42fhZ7ieJ /rte In summary: Package options for U of M Extension involvement ranges from $15,000 for the premium program, $12,000 for the standard program and $7,000 for the research option with no consulting included. This option is the most comprehensive and will result in a more formal process and report. 2) City of Hugo and Washington County CDA lead program. Under this option, City and CDA staff will develop and lead the program including: developing a business survey, develop and oversee leadership teams, coordinate the business visits, tabulate the survey data/responses and prepare a report summarizing the results of the business surveys. This option is the least expensive route (essentially using existing staff resources and in-house printing and copying) but it could easily result in the most time consuming for staff. I am a certified BR&E consultant through the U of M BR&E Program would welcome the opportunity to assist/lead as the city desires at no additional expense to the Hugo EDA. I have previously conducted five BR&E programs and I do have sample documents including business surveys and letters to introduce the program to the businesses that have successfully been used in other cities (and Chisago County) to implement their programs. There would be no involvement of the U of M Extension in this option. It is possible, however, to include the HBA and EDA members as a partner in the business visits/surveys if you wish. Action items for a future EDA work plan and priorities can be developed as a result of the outcomes under this option. Summary results can also be shared (on the overall findings of the survey) with the community and the businesses. 3) Hybrid of 1) and 2) above It is possible that a combination of options 1) and 2) above could be implemented. The benefits to a hybrid option may include: a more formal and public approach to the program with increased visibility, a neutral party to summarize, tabulate and report the survey data, and potentially less staff time. The HBA, EDA and City and County CDA staff would conduct the business visits and then the U of M could complete the research and report (identified above $7,000 in the research option in 1). 4) Informal Meetings with the Mayor & staff. This option is likely going to be the least time intensive and lowest cost approach. Business visits are usually conducted with no formal surveys or report. Essentially this option provides a way for the city to say "welcome" (to new businesses) and thank you for doing business in Hugo. Q: Are there any concerns or topics that you want us to assist you with"? HUGO Business Retention and Expansion Summary Report Sp MOM city of KIM ",go Premier IMEMBanks April 2010 • Cno'�NNEXUS' '] xcef Energy: E 1bur Community Energy Partner LAKE AREA BANK 1}iends5erving,Veigir6nr5.Sinre19f.5 In collaboration with: NIVERSITY TOFF MINNE5 -ATE TENSIO ■ !IrL WSB & Associates, Inc. P�+� ;+ Qepartment of Employment i7 V VPIeY and Economic Development �Q mlnef&ta 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 Expansion Program Communities recognize that helping existing businesses to survive and grow is a vital economic development strategy. The Hugo Business Retention and Expansion Program (BR&E) is designed to assist local businesses in thriving and expanding in the city. While the attraction of new businesses and new business start-ups are important components of any economic development strategy, research has shown that forty to eighty percent of new jobs are created by existing businesses rather than by businesses new to the community. The Hugo BR&E Program is a comprehensive and coordinated approach to assisting existing businesses. Visiting current businesses and learning their concerns is only one component of the process. The BR&E program builds awareness in the community of issues that face businesses and builds capacity for the community to address these issues. The program also assists local leaders and community members in working together to provide solutions to business concerns. Objectives The Hugo BR&E Program has five objectives: 1. To demonstrate support for local businesses 2. To help solve immediate business concerns 3. To increase local businesses' ability to compete in the global economy 4. To establish and implement a plan for economic growth and 5. To build community capacity to sustain growth and development. Sponsorship This program is sponsored by the City of Hugo, the Hugo Economic Development Authority, Connexus Energy, Xcel Energy, Hugo Business Association, Lake Area Bank, Postal Credit Union, Premier Bank, Reimer Photo, and WSB and Associates. BR&E History The Hugo BR&E Leadership Team approved entering into the Business Retention and Expansion Program after being accepted into the program by University of Minnesota Extension. The first Leadership Team meeting took place in July of 2009. Business Visits A total of 38 businesses were visited by volunteers during the business visitation phase. The Leadership Team and Task Force's goal was to visit an equally representative sample of businesses from each major industry classification in Hugo. Businesses were selected randomly from within each classification. During the months of October, November and December of 2009, the Leadership Team, Task Force and Volunteer Visitors conducted the business visits. The teams had initially identified 70 businesses for visitation. Visitors worked in teams of two and took responsibility for arranging and conducting the interviews. Warning Flag Review After the surveys were completed and returned, the Task Force met to review each survey and decide how to handle the immediate follow-up. The Warning ©2010 Regents of the University of Minnesota. All rights reserved. Flag review is designed to identify and deal with immediate issues or problems discovered during the survey process, without the need to wait for formal analysis of the survey data. Prompt attention to issues raised, even when the issues may be intractable, creates a positive response from survey participants and builds good will. Research Report Development The BR&E Leadership Team sent copies of the surveys to the University of Minnesota for tabulation and analysis. A summary of the data was prepared for the January 7, 2010 state research review meeting, where a team of fifteen individuals (listed later in this report) reviewed the results and suggested projects that might respond to the businesses' needs. Brigid Tuck then prepared the Research Report based on the input of the state research review panel as well as economic development expertise. The Research Report identifies four overarching strategies that Hugo could adopt to address general issues reported by the businesses. The Research Report then provides a list of potential projects under each of these strategies. The Task Force has the knowledge of the community and what projects are suited locally. The potential projects are only suggestions for the community to consider. Task Force Retreat A five-hour Task Force retreat was held on February 8, 2010 in Hugo. At this retreat, the Task Force was presented the Research Report. The presentation included an overview of the Hugo and Washington County economy and demographic changes, the composite results of the business surveys, and the four strategies. The Task Force reviewed and discussed the potential projects and developed new projects. In the end, the Task Force established and adapted four priority projects. These priority projects are featured in this report. Following the Task Force Retreat, the individual project committees met to discuss methods for implementing the projects. Lisa Hinz, University of Minnesota Extension, helped provide leadership at this follow-up meeting. The project committees will continue to meet. If you have ideas, time, or other talents to contribute to these projects, please contact one of the people listed. Your participation would be appreciated. People in the Hugo BR&E Program Leadership Team Overall Coordinator - Rachel Simone, City of Hugo Associate Overall Coordinator - Shayla Syverson, City of Hugo Business Resource Coordinator - Beth Jameston, Department of Employment and Economic Development Milestone Meeting Coordinator - Pat Nygaard, Hugo Community Leader Visitation Coordinator - Galen Carlson, Hugo Business Owner Media Coordinator - Deb Barnes, The Citizen Newspaper Hugo BR&E Task Force Many community leaders participated as Task Force members. This group visited businesses, addressed warning ©2010 Regents of the University of Minnesota. All rights reserved. 2 flag issues, set priorities for action and will assist in implementing the chosen projects. Task Force members (listed below) also participated in business visits. Matt Alexander, Kraus -Anderson Jan Arcand, Hugo Economic Development Authority & Oneka Ridge Golf Course Duane Arens, Connexus Energy Bridgett Backman, Century College Deb Barnes, The Citizen Newspaper Bryan Bear, Executive Director of the Economic Development Authority and Community Development Director Duane Bengston, Hugo Community Leader Duane Berg, Wilson Tool Katyn Berg, Ramsey County WorkForce Center Jim Bever, Hugo Economic Development Authority and Bever Landscaping Karen Bever, Bever Landscaping Lenore Birch, White Bear Lake Area Schools Patti Breen, Northern Lights Pediatrics Galen Carlson, North Country Auto Body Shelly Clasen Tesser, Administrative Intern, City of Hugo Matt Dean, Minnesota House of Representatives Bob Dettmer, Minnesota House of Representatives Sharon Dierkhising, Hugo Community Leader Mike Gallivan, Gallivan Insurance Margo Geving, Hugo Good Neighbors Food Shelf and Forest Lake Area Schools Brant Gustafson, Postal Credit Union Dennis Hegberg, Washington County Commissioner Joe Houle, Premier Bank Beth Jameston, Washington County WorkForce Center Phil Klein, Hugo City Councilmember Jim Leroux, Former Hugo City Councilmember Mike Lovett, Superintendent, White Bear Lake Area Schools Steve Marier, Hugo Feed Mill Larry Martini, Business Services, Forest Lake Area Schools Mary McNellis, St. Croix Real Estate Mickey Michlitsch, Sertinos Cafe Pat Nygaard, Hugo Community Leader Pete Pederson, Former Hugo Parks Commissioner Frank Puleo, Lebens Flower Shop and former Councilmember Kerstin Quigley, Lake Area Bank Katie Riopel, Katie's K-9 Obedience School and Hugo Lions Club Denny Route, Hugo Lions Club Julie Route, Hugo Lions Club Keith Ryskoski, Superintendent, Stillwater Area Public Schools Bruce Sayler, Connexus Energy Molly Seidl, Kraus -Anderson Steve Seidl, Kraus -Anderson Rachel Simone, Associate Planner, City of Hugo Deb Drake, Hugo Community Leader Shayla Syverson, Economic Kris Emerson, Hugo Good Neighbors Development/Parks Intern, City of Hugo Food Shelf Nikki Walters, Sun Barn Farms and Wild Randy Engelmayer, Country Financial Wings of Oneka Michael Ericson, City Administrator, City Tom Weidt, Hugo City Councilmember of Hugo Angie Fromm, Guys and Dolls Salon ©2010 Regents of the University of Minnesota. All rights reserved. Businesses Visited Thirty-eight businesses were visited during the BR&E process. The community greatly appreciates their willingness to help the community understand their needs. Their survey responses are confidential yet it is important to credit their participation by listing their names here. American Legion Bald Eagle Sportsman Association Carpenter's Steak House Chips Computer Service Cornerstone Chiropractic Country Video Discovery Financial Brokerage Kurt Grainger Enterprises Gene's Disposal Service Grundhofer's Old Fashion Meats Gunner Construction Health East Hugo Clinic Hugo Chiropractic JL Schweiters Construction JT Services Inc Katie's K-9 Obedience School Key Automotive KWIK Trip Lake Area Bank Lametti & Sons Inc Los Ninos Spanish Preschool Manomin Resawn Timbers Oneka Pet Resort Oneka Ridge Golf Course Premier Banks Reimer Photo Sertinos Cafe Subway TGK Automotive The Citizen The Fry Group Trepanier Stucco LLC US Bank White Bear Trailer Works Wild Wings Game Farm Wilson Tool Withrow Elementary School Woodrunn Horse Boarding Consultants Bruce Schwartau and Liz Templin, University of Minnesota Extension, served as the BR&E consultants for the Hugo BR&E program. This included coaching and advising the local Leadership Team, conducting Volunteer Visitor training with the Task Force, assisting the Leadership Team in business selection, facilitating the Warning Flag review meetings, and participating in the State Review Panel. State Research Review Panel The panel reviewed the tabulated survey results and suggested potential actions that might be taken by Hugo leaders in response to local firm concerns. The participants of the January 7, 2010 meeting were: Minnesota Department of Employment and Economic Development: • Ed Dieter • Gene Goddard University of Minnesota: • Michael Darger, Extension • Liz Davis, Applied Economics • Lee Munich, Humphrey Institute • Bruce Schwartau, Extension • Brigid Tuck, Extension • Ward Nefstead, Applied Economics Hugo Task Force: • Duane Arens • Bryan Bear • Karyn Berg • Galen Carlson • Michael Ericson • Rachel Simone • Shayla Syverson ©2010 Regents of the University of Minnesota. All rights reserved. 11 Hugo's Economic and Demographic Profile A profile of Hugo's economy and demographics was prepared for the Research Report and presented at the Task Force retreat on February 8th. The profile was created and written by Rachel Vilsack of the Minnesota Department of Employment and Economic Development. The profile contains statistics on population, employment, income, commuting and labor sheds, occupations and educational attainment. A full copy of the profile can be viewed in the Research Report which can be obtained by contacting Rachel Simone, City of Hugo, at (651) 762-6304. Hugo BR&E Survey Results Following are the results of the survey of the 38 businesses visited. The businesses' characteristics are summarized first followed by priority projects selected by the Task Force. Survey results related to those projects are included in this summary. Additional survey results including four strategic themes are in the Research Report. Characteristics of Businesses Visited Eighty-four percent of the businesses that participated in the Hugo BR&E survey are locally controlled, shown in Figure 1. Figure 1: Business Ownership Branch 8% Franchise 3% Locally Owned / Operated, Multiple Locations 8% No Response 5% Locally Owned / Operated, One Location 76% ©2010 Regents of the University of Minnesota. All rights reserved. Seventy-six percent of the participating businesses are locally owned with one location and eight percent are locally owned with multiple locations. One conclusion that can be drawn from these results is that many decisions regarding Hugo businesses are made locally. The businesses visited employ a total of 599 full-time employees and 224 part- time employees. Overall, employment is down 220 jobs from three years ago. Full-time employment is down 324 jobs while part-time employment is up 64 jobs. This downturn is consistent with the economic recession experienced in the United States during this time period, although it looks like the participating Hugo businesses took a harder hit. Businesses appear to believe that the recession's effects are waning for their businesses. None of Figure 2: Future Plans No Changes Planned Expanding at This Location Other Changes Expanding at Another Location Merging Moving Selling Closing Downsizing the businesses surveyed intend to decrease their work force in the next three years. Roughly one-fifth of businesses expect to add employees in select job categories in the next three years. Overall, the survey results indicate that businesses in Hugo are hopeful for the future. As shown in Figure 2, only one of the responding businesses indicated that they are considering closing and none are contemplating downsizing. Nearly a quarter of the businesses (24 percent) are considering expanding at their current location and another thirteen percent in another location. The majority of businesses indicated they were not currently considering any changes. 10 12 14 16 ©2010 Regents of the University of Minnesota. All rights reserved. 31 Finally, businesses report Hugo as a good place to live. On a scale of 1 to 5, 5 being "excellent" and 1 being "poor", the average response to the question "What is your overall opinion of Hugo as a place to live" was 4.16. A similar question, "What is your overall opinion of Hugo as a place to conduct business" earned an average of 3.79. Overview of BR&E Projects for Hugo Profits are the key to the retention and expansion of firms. While the owners of a business might be attracted to a place because it is a nice place to live or raise a family, a business can only survive if it makes a profit. The same is the case for businesses that start in the community. The owners may be loyal to the community, but if they cannot make their business profitable they will close or move it; they do not have a choice. In a market economy, making a profit is the responsibility of business management and its employees, not community groups, local or state governments. However, the actions of these groups can sometimes help businesses become slightly more profitable. The priority projects outlined below are aimed at helping businesses become more profitable and thus be able to survive and grow in the community. Hugo BR&E Priority Projects The following four priority projects were selected at the Task Force retreat held in Hugo on February 8, 2010. 1. Market the City of Hugo 2. Create, Coordinate, and Encourage Events 3. Host Business and Breakfast Workshop(s) 4. Address Highway 61 Access Issues and Improve Downtown Hugo Priority Project #1: Market the City of Hugo Increased exposure can help businesses generate profits. Exposure to consumers, to other businesses, and to new business opportunities, for example, can all provide businesses with avenues to generate more revenue and greater profit. For some businesses, the highest priority is direct exposure, through advertising or promotion, to the individual consumer. For other businesses, it's paramount to gain exposure to other businesses that may present an opportunity for business -to -business sales. Hugo businesses could profit from greater exposure of the City of Hugo itself. Related Survey Results Businesses in Hugo value small town atmosphere and charm. When asked to rate from a list of community features which features have a positive impact, no impact, or a negative impact on their business, Hugo businesses awarded "small town atmosphere" an average of 1.34 (2.0 = very positive impact; 0 = neutral), making it the most highly rated community feature. "Freeway access" (1.13) and "festivals and events" (0.79) rounded out the top three community features. None of the eighteen features received a negative score. Project Plans from the Committee: This project is based on several potential marking strategies that all relate to the City of Hugo and its businesses. Each item falls under an idea for a marketing plan for the City ©2010 Regents of the University of Minnesota. All rights reserved. 7 that would consist of public relations, advertising, and sales. There were several indications within the BR&E surveys that suggested that businesses wanted help promoting their business with an emphasis on advertizing. Over the next several months the project team will be working on putting together a marketing plan for the City and incorporating ways to help the businesses in Hugo. The marketing plan will also help recruit new businesses into the City. Some of the goals for the marketing plan include a City slogan, multimedia campaign, visitor guidebook, and tradeshows. The project team suggested that the City partner with the local business associations to put together portions of the marketing plan for the City. This committee will be led by Rachel Simone, Tom Weidt, Louis Melamed, Bridgett Backman, Gretchen Boyd and Michele Tesser. Priority Project #2: Create, Coordinate, and Encourage Events Businesses thrive in attractive communities. These attractive communities have amenities and opportunities that draw resources the businesses require. These resources can be quite varied, ranging from quality employees to tourists to developers to complimentary businesses to infrastructure. Businesses need these resources to be successful and profitable. Events could potentially help the City of Hugo be more attractive. Related Survey Results Responding businesses perceive Hugo as a great place to live. When asked to rate their overall opinion of Hugo as a 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 5=Excellent 42% 1=Poor 2=Fair 0% � 5% 3=Good 16% 4=Very Good 37% ©2010 Regents of the University of Minnesota. All rights reserved. No business responded that Hugo was a "poor" place to live. Businesses were asked if certain community features had a positive impact (+2), no impact (0), or a negative impact (-2) on their business. The community features having the most positive impact were small town atmosphere (1.34), freeway access (1.13), and festivals or events (0.79). The community features having the least positive impact were lodging facilities (0.03), museums and historic sites (0.11) and meeting facilities (0.32). Project Plans from the Committee: This project consists of supporting existing events and brainstorming additional events that have an economic impact on Hugo. Hugo has several existing community events which are well-planned and have grown in the last few years. These events have been developed and promoted by organizations such as the Lions Club, Hugo Business Association, Oneka PTA and other community groups. One of the most well known community events to support is Hugo Good Neighbor Days. The project team will work with the Lions Club to further promote and expand this event. The project team will encourage the organizers of existing community events to coordinate with businesses and take advantage of opportunities for business promotion. The project group will also brainstorm other events, as a part of a two to three year plan. A number of very exciting possibilities have already been discussed: a park bonfire, sledding party, pet fest, music in the park, golf tournament and triathlon. Also, developing a charity motorcycle run to draw a large contingent of motorcycle enthusiasts to local businesses is an option. Creating and expanding trails to encourage biking, hiking, skiing and running would draw outside visitors to Hugo. Encouraging healthy family - friendly activities would benefit the life- styles enjoyed in Hugo. The residents of Hugo support community events and there is the potential for additional offerings which promote local businesses. This committee will be led by Shayla Syverson, Patti Breen, Mike Gallivan, Kate Riopel, and Duane Berg. Priority Project #3: Host Business and Breakfast Workshop(s) Profitable businesses tend to have efficient, knowledgeable, and skilled owners, managers and employees. A business owner must not only have a marketable product, but also the skills and abilities to bring that product to market at a profit. Trained and skilled employees can assist business owners in achieving that goal. Business and Breakfast Workshop(s) would give local business owners an opportunity to be exposed to training opportunities and other resources as well as to information about City activities. Related Survey Results Overall, businesses in Hugo appear to be satisfied with the quality and availability of the labor force in and around Hugo. When asked to rate their employees with respect to their attitude towards work and their productivity on a scale, where 1 equaled "poor" and 5 equaled "excellent", the average score for both attitude and productivity was 4.4. No business rated employees as either poor or fair with respect to either of these measures, as evidenced in Figure 4. ©2010 Regents of the University of Minnesota. All rights reserved. M Figure 4: Employee Attitude 2=Fair 1=Poor 0% 0% 3=Good ♦♦ 12% 5=Excellent 55% 4=Very Good ♦�������♦ 33% This committee will be led by Mike ommittee: Ericson, Duane Arens, Bruce Sayler, Galen Carlson, and Mickey Michlitsch. Project Plans from the C This project is based on the survey results that stated businesses wanted ways to network with each other. The project team recommended having a business breakfast workshop with a speaker and a time to socialize. The business and breakfast can be thought of in many forms, for example, brunch, lunch and dinner socials. One of the main ideas was having an annual "State of the City" speech from the Mayor of Hugo and also bringing in County and State officials in to speak to the business owners. This would give an opportunity for the businesses to interact with their local, County and State officials. The project team will be brainstorming over the next few months on how to accomplish their goals to provide a new way for businesses to network and exchange information with their officials. Priority Project #4: Address Highway 61 Access Issues and Improve Downtown Hugo Just as loving a community does not ensure profitability for a business; profitability does not ensure a business will remain loyal to a community. Businesses may also consider a host of factors when deciding to remain in a community or to move to another. Businesses need quick, easy access to their businesses for both their customers and their suppliers. They may also prefer to be located in a community with an attractive, thriving downtown. Related Survey Results 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 5=Excellent 21` 1=Poor 2=Fair 0% 11% 4=Very Good 47% Businesses were asked to rate Hugo as a place to conduct business on a scale where 1 equaled "poor" and 5 equaled "excellent". The average score for the businesses' responses was 3.79. This translates into a rating between "very good" and "good", which is slightly lower than the score typically seen in other communities. Responses to the question are shown in Figure 5. However, businesses are also being attracted into Hugo. One of every three responding businesses started in another community and moved into Hugo. Project Plans from the Committee This project started because access to Highway 61 was identified as a concern of businesses located in the downtown area of Hugo. They wanted to make sure that there was adequate access to their businesses as the highway is improved. At the implementation meeting on February 16, 2010, the 3=Good 21% group was presented with the Memorandum of Understanding for Highway 61 between the City, Washington County and the State of Minnesota on the access to the highway. This was something the members did not previously know about and will learn more about as the project team meets. Within the survey there were three retail factors that were chosen as the most important to be improved. These three were variety of businesses, exterior atmosphere, and variety of places to eat. This project team will also be working on tasks to improve the downtown by eliminating blight and attracting new businesses with an emphasis on quality. As the project team meets there will be an outline created on how to implement the goal of improving the downtown area. This committee will be led by Bryan Bear, Jan Arcand, Steve Marier, and Richard Fischer. ©2010 Regents of the University of Minnesota. All rights reserved. 11 AAAA♦ 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 tuckb(a)umn.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 3 G A O N C N N n _ 3 D N 30 ° w ^ m ^ H m a m fl! D o p N a .. 5. Os m o,gym, o 5 m 3 lfl S l0 F N m iD � 6 ' PO m (D m m a N O x O ' y v Q frQDD UI�D O CD NJ O6 C N 7 C N 2 W O 00 m = c 0 0 �2 o < w n N o _2 N 1a 0 m m O N s p F vii W o �n m o n o n .. .. ........... 7 C1 N N ...".I. ......... .�. ..........�. � D ...... m 5• La 2 7 n 2 N Q W N O W D c N La N O N v = n N c a- a< c < m U w o NLA a = M ��•• z D q x o N 3 0 a o p 3 . * afD c °— �- 3� Z m s S o� jo= m ? c � m ^� O v c�'♦• 6 0 Z o F o a o _ 2 w » a w FD O c a a - o a OF n m 3 _ m o 3 oa '^ 0 m a F fD a 0 3