01-09-12 EDA ITEM 3.1
EDA RESOLUTION NO. 2012 - 01
OTSEGO ECONOMIC DEVELOPMENT AUTHORITY
COUNTY OF WRIGHT
STATE OF MINNESOTA
A Resolution Adopting an Official Newspaper.
Whereas, the Elk River Star News is a qualified newspaper of general circulation within the City
of Otsego:
Be It Resolved, that the Otsego Economic Development Authority (EDA) has designated the Elk
River Star News as the EDA's official newspaper effective immediately.
Be It Further Resolved, that all matters which are required by law to be published in an official
newspaper, and all other matters which the Otsego Economic Development Authority shall deem
advisable and in the public interest to be published, shall be published in the Elk River Star
News.
Dated this 9 day of January, 2012.
OTSEGO ECONOMIC DEVELOPMENT AUTHORITY
Jessica Stockamp, President
Tami Loff, Secretary
1T 3.2
0 t CITY OF
se go
MINNESOTA
TO: Otsego Mayor and City Council
FROM: Lori Johnson, City Administrator
DATE: January 4, 2012
RE: EDA
As we begin 2012, I would like to have a brief discussion with the EDA about the EDA's
priorities and goals for the coming year. The City Council has made a commitment to
increase the City's economic development efforts, and the Economic Development
Authority (EDA) has an important role to play in that effort. To date, the EDA has met
infrequently, meeting only when needed to respond to an item requiring EDA action.
The EDA and its advisory committee(s) can be very effective in providing
recommendations to the City Council on items such as a subsidy request in the form of
tax abatement or tax increment financing; a strategic economic development plan; and
obtaining grants for economic development infrastructure or businesses.
In reviewing past EDA minutes, I found reference to "special task forces" that were to
have been formed in 2002. I understand that those "special task forces" were not
formed as intended. Obviously much has changed since that direction in 2002. Yet, I
agree that forming task forces or committees, such as advisory committees, is still a
viable and valuable concept.
These advisory committees would meet only when requested by the EDA, Council, or
staff. Up to two members of the EDA could sit on each of the committees. For
instance, a finance committee could review requests for a business subsidy and make a
recommendation to the EDA and Council. The finance committee would likely include a
local bank representative and several business representatives along with the EDA
members. The committee would have the ability to review proposals in -depth before
the proposal would go to the Council. Of course, the committee's recommendation is
just that, a recommendation. The Council has the final decision making power. Other
committees could include strategic planning, marketing, and business expansion and
retention.
Finally, as I stated earlier, I am soliciting direction and input from the EDA on initiatives
and projects you would like to undertake in 2012 and beyond. It is important that we
focus our energy on the items that are of greatest importance to the Council and EDA in
order to achieve the desired results. The EDA's involvement is important as we position
the City for future opportunities.
Commercial. pr''.. perties
• ® .
• •
are f acing h ig h er t
® Valuations are down, yet tax bills was eliminated in the budget deal to end the from city to city. But in general, he said, com-
are heading up more than for most state government shutdown. It will result in munities with many lower -value homes and
Twin Cities homesteads. $261 million less the state will pay in reim- small commercial - industrial bases will see
bursements to local governments — savings the biggest tax shifts to commercial prop -
that were a crucial piece of the puzzle for erties.
)ON JACOBSON • Special to the Star Tribune plugging the state's deficit. "I'm hearing from people across the state
To soften the financial blow to owners of there are some fairly significant tax burden
A key budget - balancing measure that the modestly valued homes that most ben- shifts going on among property types," he
Minnesota adopted last year in its protracted efited from the credit, a replacement mea- said.
fight over how to close a $5 billion deficit has sure was adopted that excludes part of their Projected tax runs performed by House
raised an alarm among commercial and in- homes' value from property taxes. Research Department show that in the Twin
dustrial property, owners, who say they and But because commercial, industrial, apart- Cities metropolitan area, values of home -
their tenants are being forced to shoulder a ment and other non - homesteadedproperties steaded residential properties will drop 4.5
bigger share of local property taxes. don't receive the benefits of the new exclu- percent while facing a 0.5 percent property
State government projections seem to sion, it's resulting in a shift of tax burdens to tax rise. Values for large commercial proper -
back their case. House of Representatives them, says the League of Minnesota Cities. ties, meanwhile, will fall 4.1 percent but they
research reveals that even though commer- "Because of the way this tax credit pro- will face a 2.7 percent tax increase.
cial and residential properties are losing val- gram was resolved, cities are faced with big- Smaller commercial properties won't see
ue at similar rates, property taxes will go up ger budget gaps than they have in the past," as much of a value drop —1.1 percent. But
substantially more on commercial proper- said Pat Mascia of Duke Realty, the incom- their property taxes are expected to rise 6.1
ties next year. ing president of NAIOP's local chapter. ' percent.
Apartment and multifamily properties "Their budgets haven't changed, but they're Twin Cities -area apartments, meanwhile,
will also take a major jump, the projections not getting the property taxes they typically will see their values fall by only 0.8 percent,
show would have because of the way this is work- but their property taxes will jump by 7.1 per -
The commercial property owners trade ing out." cent next year, the research predicted.
group, the National Association of Industri- As a result, he said, a bigger share of the "I think the biggest impact of this will be
al and Office Properties (NAIOP) says this property tax burden in many cities is falling on apartment owners in outstate Minnesota
happened because of a move to repeal the on owners of office and retail buildings, who where there isn't as much of a commercial -
homestead property tax credit and replace in turn pass along the tax increases to their industrial base to spread out the shift," said
it with a new system that exempts part of a tenants. Todd Liljenquist of the Minnesota Multi -
home's value when local governments set Gary Carlson, director of intergovern- Housing Association.
property tax levies. mental relations for the League of Minne-
The homestead credit, which had most- sota Cities, said the effects of the switch to Don Jacobson is a St. Paul -based freelance writer. He can
'.nefited owners of lower - valued homes, the market value exclusion system will vary be reached at 651 -501 -4931. 4111I.1 o.
' ZT0Z '9 ANV11&, IGI2Id • aMlnaI2LL ZIv1.S • SS314.•._ -
aco li
I
FRIDAY, JANUARY 6, 2012 • �1R113UNE •B •
'STAR USINES D 5
i i
1
k'
•
'
.
:
} ! 1 r
,�, \ t sil a , � as.� ` k i
. . • : 'f?. 1.'.fr *T......?. ' 1.1...2.-j::.'1.... ' -:."-Y.A*'!;..4':;,. -,-..#47i--. '....:. - . .... ,....440
. . ..41 ■,.. it....T..3. N... .. ...4 '"' ■ .1 x 1,. .N.
u c �• f - ",y r + lf '414
y 1
ul
y ,, t � � Y •
U. " "` id b k?€ �tt i. 1 ' f . J ` 1,-. , .
a 8 - r - - c.,.4 t 't tk �,' •
-01`x1- �A� ii�� + 4 Y ,• q'' `� - : R`t� h }r f ? Z f w S �� ^;• r
le $ s
- f
cd {�3��. SS 'tZ i ? .
` o ._ _�£ � `� szr `d - � .'�T s �.� .a �r s3' ' v .
''y rr' ky .. F �• y�
a , ` h al .?x yys{ s gt s s 'ns .�
d C :
E i` ' � �S S } 3 p v p g ic j t: ��'_Yb
J 0 R` YRS ya 'LLt S
s`�i uT3 �f 'G a 4� � r
d � �
j
u :' x RIC SENNOTT • .chard.seImOtt @n
•
•
is of Duke Realty an d NAIOP says this ye a bigger shar of property taxes in m any cities is fallin on owners of o ffice and retailbu
•
m
Pat Masc ty
B6 • METRO • STAR TRIBUNE • SUNDAY, JANUARY 8, 2012 (NO)
cities business Marketing cities
,IM ADAMS (( WE WANT TO DISTINGUISH OURSELVES • jadams @s tartribune.com Nvith �O�
FROM OTHER CITIES. ))
Several Dakota County cit- Dave Olson, Lakeville's community and economic development
ies are developing marketing director. The city plans to lobby the Legisla
strategies to keep up with their .
neighbors in drawing more vacancies, which has been sta- rector who produces local vid- citing a drain on police resources.
business their way. ble, starts declining, Rausch eos for YouTube and other A m Hastings just approved said. Among other things, the websites, Nienhaus said. Online By KATIE HUMPHREY 2012 h a nearly $29,000 plan, part- plan suggests recruiting busi- ads also are used to reach some quests
ly based on a survey last year nesses that appeal to boaters younger people for whom, "if
of 35 area businesses and pre- and bike trail users. you don't have an online pres- Sometimes the calls come the cc
gg � multiple times a da homes
pared by Minneapolis public At Muldrow 's suggestion, ence, you don't exist." P day.
relations firm Himle Horner. Lakeville, which previously Burnsville set up a website A resident with physical cities 1
The city's economic devel- has used marketing videos or to focus on attracting medi- or developmental disabili- stress
opment arm will meet this special inserts in publications, cal and health care business- ties and traumatic brain inju- "Th
month to outline what comes is considering broader Internet es about six years ago. A year a e sous wan de
r f r and two o
next to put the plan into ac- and social media advertising. ago, the site became the "Why group
tion, said spokeswoman Shan- "The whole way of commu- Burnsville" page, with a broad - the staff asks Burnsville police cluste
non Rausch. nicating is changing, and you er focus on attracting science, to fmd the missing person. abeth
Farmington is just starting have to adapt and change with technology, health and math- "We might get three o or des cerns
four
on a home -grown plan, it," Olson said. related businesses, Nienhaus ar
while Lakeville is spending "A lot of marketing is done said He gets a call or two a 1 day on the same ing 1
about $30,000 on its market- on city websites ... More and month from potential new person," Po- home
h
ing strategy, to be completed more of it is going electronic." businesses which have seen Chief Bob But
, , Hawki lice Cn s said. to try
m February. Consultant Tripp Muldrow told the council Burnsville's Internet ads and i° H t really started some
Muldrow from Greenville, S.C., Tuesday night that corporate want more information. z
to re our re- Mi
' °d -
a local steering committee site selectors wade through Similar business lures are -
nd unveiled a new marketing many websites listing city in- available on the websites of Hawkins so rces challeng- ha
slogan to the City Council last centives, such as Developmen Rosemount and Progress Plus, The
week: "Lakeville: Positioned to talliance.com, to winnow po- an economic development es with adult group homes, grout
Thrive." tential sites, before even tallc- agency jointly operated on be- also known as adult foster far do
"I'm a skeptic, but I like ing to local officials. half of Inver Grove Heights and homes, came to the fore as the of try
it," Mayor Mark Bellows told Burnsville is an aggressive South St. Paul, Batulis said. city discussed its 2012 bud- state
Muldrow. "It has an honesty Internet marketer, noted Ruthe Progress Plus President get. Hawkins, who stressed type
and humility about it. It says Batulis,,president of the Dako- Jennifer Gale said businesses that the police work to keep as lip
we haven't arrived yet, but we to County Regional Cham- in the two cities raised mon- everyone safe, pointed to in- foste
have potential." ber of Commerce. Burnsville's ey to enhance the website — creased calls to group homes "It
The plan's aim is to increase website has a "Why Burnsville" which is searchable by site lo- for things that could be han- com(
awareness of Lakeville's busi- page that lists local and state cation, business type, size or dled differently — for exam- year,
ness airport, schools and other programs to help companies price — and to hire a branding ple, wi one sidentsr are
staff pour
assets in a tight economy, said fmd state grants, business sites consultant about five years ago. gry
Dave Olson, community and and other information. "We That produced a pair of slo- members, or false reports, wort
economic development direc- pride ourselves on being `cut gans: "Pro- Business Attitude" neighbors' complaints about lutio
tor. He noted that the city used from a different cloth' — that is, and "Urban- Alternative Space loud music or repe ted calls l l es ti
a federal community block we think and act like business Available," she said. people leaving
grant to pay for the study, to be people," the website says. The branding effort led to cilitebc
y
implemented this year. The city also promotes itself stronger connections with re- Such calls accounted for 78 care
"We want to distinguish our- on Facebook, YouTube, Twit- al estate brokers, who now re- of the 230 police calls to group mak
selves from other cities," Olson ter (it has about 550 followers) ceive monthly e-mails about homes in 2011. That's up from witl
said. "There are fewer projects and specialty websites, includ- available sites and business in- 2009, when just 12 of the 239 be e
out there and more cities com- ing that of the Minnesota High centives, said Gale, who also calls to group homes were for ing
peting for them." Tech Association, that few cit- heads the local River Heights the same types of incidents. B
Do the plans produce mea- ies use, said Skip Nienhaus, Chamber of Commerce. "That takes a lot of time Assn
heck surable results? "I know it's economic development poor- South u St.
edeveloping its for- and fro a true p oli service a burden Res orp
better than if we don't do any - dinator. Y e
thing," Olson said. The city has hired several mer stockyards and now has a to law enforcement staff and groi
One gauge Hastings will tech savvy staff in the past de- diversified business mix that their duties," Burnsville City tryi
monitor as its plan is imple- cade, including a former mar- provides 3,500 jobs, she said. Council
n s Member g e re ant me het- tho:
mented over a few years is keting - consultant and last sum- Itatnts. is s
whether the number of store mer a new communications di- Jim Adams • 952- 746 -3283 g with local legislators.
. 17 : .