HomeMy WebLinkAbout20080915 - VII-3September 9, 2008 VII-3
TO: The Honorable Mayor and Council
FROM: John Grossman, HRA Director
RE: Public Hearing on the establishment of an Economic Development
Authority and consideration of an Enabling Resolution.
Summary: The concept on an Economic Development Authority (EDA) has been
studied by the Joint Committee established by the Mayor and including members of the
Council Planning committee, the Housing and Redevelopment Authority and the
Economic Development Commission. Between December 2007 and March 2008 they
sought to gauge the need for a more proactive effort, and the pros and cons of an EDA to
increase Hastings' organizational capacity. After the March 31 report by the Joint
Committee, the City Council voted to support the concept of creating an Economic
Development Authority and directed staffto bring forward action steps for establishing
an EDA by January 1, 2009.
Economic indicators: The need for Hastings to pay attention to economic development
is indicated by a number of studies of economic factors in Dakota County. See the
attached tables copied from the studies. Future job growth projections are lower for
Hastings than the County and Metro Area (A-1). There has been a decline in
manufacturing jobs, which is a higher wage sector of the economy (A-2). Hastings' total
commercial-industrial tax values are below average in the County (A-3). The supply of
and demand for vacant land zoned for industrial development is projected to be less than
neighboring communities (A-4, 5).
Enhanced capacity: Establishing an EDA would assign all economic and redevelopment
powers available by law to one board, responsible to administer business development,
industrial development, commercial and residential rehabilitation and neighborhood
improvement for the City of Hastings. An EDA would provide additional "tools" not now
available and enhance the coordination of activities. The EDA would have all the powers
of EDAs and HRAs shown on the attached list (B). EDA activities can be funded by an
annual EDA and/or HRA levy approved by City Council.
Enabling Resolution: The attached resolution (C) meets the requirements of Chapter 469
of Minnesota Statutes and reflects the preferences of the Joint Committee, the Council
Planning Committee, the HRA and the EDC. A number of specif c limitations on the
powers are included in the resolution. In these cases, the EDA will need Council
approval. The authority will be known as the Hastings Economic Development and
Redevelopment Authority. The appointment of the first members and administrative
policies can be considered later this year. The EDA would take the place of the existing
EDC in January, 2009. The HRA would have to continue to meet for some months to
transfer its property to the EDA, and would then be terminated.
Action: After the public hearing the enabling resolution can be considered and, if
adopted, the EDA would be established as of January 1, 2009.
Sources of attached tables:
Dakota County Economic and Demographic Assessment, March 2005.
Hastings Planning Department and Dakota County tax records, 2008.
Regional Development Framework 2030. Metropolitan Council, January 2007.
Draft Hastings Comprehensive Plan for 2030, 2008
A Market Study for Commercial and Industrial Space in Dakota County, April
2008.
Economic Development
Workforce
Population Growth and Employment Growth Forecasts
Population and employment growth forecasts prepared by the Metropolitan Council show
a wide disparity between population growth and employment growth in Hastings (see
Figure 5-3). A staff member of the Metropolitan Counci] indicated in a telephone
conversation in 2007 that the employment forecast for Hastings is erroneous and should
be revised upward.
Figure 5.3:
Projected Population and Employment Growth
Met Council: Projected Population
& Employment Growth
1 _. ~ P
~~ _ Po ulation Growth
Metro Area j ®Employment Growth
Dakota County '- --
--- -- ~_ -
City of Hastings ~- - I ~ - ~ ~ - -~
0% 10% 20% 30% 40% 50% 60% 70%
Source: Metropolitan Council, Research & Statistics, Regional De~,elopment Framework 2030
Forecasts, Updated January 2007
Commuting
Residents of Hastings show an exceptional propensity for working in the City of Hastings
compared with other residents of Dakota County, reinforcing the community's role as a
free-standing city rather than a suburb. The Work Destination for 4,082 residents
(42.1 %) is the City of Hastings (US Census 2000). In most Dakota County communities
(Apple Valley, Farmington, Inver Grove Heights, Lakeville, Mendota Heights,
Rosemount, South St. Paul, and West St. Paul) this percentage ranges from 13.2% to
16.4%. Eagan and Burnsville retain 25.6% and 24.8% of their residents as employees.
4-6 8 January 2008
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Economic Development
__ _ _ __
Source: Rachel Hillman, DEED Regional Labor Market Analyst, April 2007
The most significant growth sector in Hastings between 2003 and 2005, both numerically
and as a percentage change was aloes-wage sector, Accommodation and Food Services
(173 jobs - 24.8% growth). Four industries lost more than 50 employees:
^ Information
^ Retail Trade
^ Manufacturing
^ Administrative and Waste Services
Table 5.3:
Change in Employment, 2003-2005
Between 2003-2005
Numeric Percent
2005 2003 Change in Change in
Employment Employment Employment Employment
Accommodation and Food Services 870 697 173 24.8%
Transportation and Warehousing 309 272 37 13.6%
Real Estate and Rental and Leasing 107 93 14 15.1%
Arts, Entertainment, and Recreation (private) 125 122 3 2.5%
Finance and Insurance 209 217 -8 -3.7%
Public Administration 879 887 -8 -0.9%
Educational Services 741 756 -15 -2.0%
Other Services, Ex. Public Admin 281 296 -15 -5.1%
Health Care and Social Assistance 1,403 1,431 -28 -2.0%
"Construction 508 547 -39 -7.1%
Information 88 146 -58 -39.7%
Retail Trade 1,351 1,423 -72 -5.1%
Manufacturing 1,592 1,674 -82 -4.9%
Administrative and Waste Services 237 351 -114 -32.5%
Total, All Industries 9,057 9,362 -305 -3.3%
Source: DEED, Labor Market Information Office, Quarterly Census of Employment and Wages (QCEW).
"Employment data includes both public and private sector firms, unless otherwise noted.
"Employment data for some industry sectors are not disclosable due to confidentiality.
8 January 2008
4-3
A-Z
2007 TAXABLE
MARKET VALUE
BY LAND USE
Residential % Commercial % Industrial Total Value % of County Value
Hastings 83.1% 9.4% 1.6% $1,852,968,000 4.8%
Apple Valley 84.4% 9.3% 1.0% $5,202,715,700 13.5%
Burnsville 67.7% 17.7% 3.4% $6,382,547,300 16.6%
Eagan 72.8% 17.4% 3.6% $7,863,468,200 20.4%
Farmington 90.3% 4.2% 1.2% $1,786,536,300 4.6%
Inver Grove Heights 79.8% 8.2% 1.9% $3,550,579,100 9.2%
Lakeville 86.6% 7.7% 2.2% $5,954,162,900 15.5%
Mendota Heights 81.8% 12.5% 3.1% $2,008,602,400 5.2%
Rosemount 84.4% 4.5% 6.4% $2,366,254,900 6.1%
South St Paul 81.0% 8.8% 3.3% $1,635,452,900 4.2%
West St Paul 72.1% 14.0% 1.5% $1,734,923,900 4.5%
Dakota County 78.6% 11.8% 2.8% $38,485,243,600 100.0%
/1- 3
COMMERCIAL/INDUSTRIAL LAND SUPPLY
TABLE 26
VACANT COMMERCIAL AND INDUSTRIAL ZONED LAND*
DAKOTA COUNTY
2007
Commercial Industrial
Community Acres Acres Total
Apple Vallee 40 420 460
Burnsville 90 1 ~0 240
Eagan X20 270 790
Farmington 120 90 210
Hastings 8~ 120 20~
Inver Grove Heights 330 710 1,040
Lakeville 67~ 2~0 92~
Mendota Heights 6 4> > 1
Rosemount 130 2,160 2,290
South St. Patil 30 40 70
West St. Paul 0 0 0
Subtotal 2,026 -1,255 6,281
Remainder of Co. 863 X31 1.94
Dakota` ~Pnn.. 2,8,$~ `; 4,785: 7,67
* Includes only vacant land zoned corrunerical or indush~ial, not vacant land
identified in land use plans as future commercial or in dustrial but currently
zoned for other uses.
Sources: Dakota Cotmri~ GIS; Maxtleld Research Inc.
West St. Paul and Mendota Heights have very little land remaining for commercial and in-
dustrial development. South St. Paul has a small supply as well, but has greater redevelop-
ment potential with the closing of the stock yard planned in Apri12008. In addition, none of
the vacant parcels in these communities are large enough to support big-box retail, which
has been a trend over the past decade or more. Thus, most commercial spaces added will be
smaller.
Like Lakeville, Farmington and Hastings are next to agricultural land and therefore have
greater capacity to add commercial and industrial land to their communities as the need aris-
es. Currently, both communities have about 200 acres of vacant zoned commercial and in-
dustrial land. Between 2000 and 2006, both communities developed about 40 acres with
commercial and industrial uses.
MAXFIELD RESEARCH INC. 66
.4-4
DEMAND ANALYSIS AND RECOMMENDATIONS
As shown below, when total employment is compared to the amount of projected industrial
space, the total amount of industrial space (square feet) per job is projected to decrease
through 2030. This decrease is due to the continued shift toward a more service-oriented
economy, meaning fewer people will work in an industrial environment. It should be noted,
however, that the amount of space per industrial job will increase as a greater percentage of
industrial space will be warehouse versus manufacturing.
Industrial Square Feet per Job Trends, Dakota County
1990 2000 2010 2020 2030
238.9 237.4 213.2 203.8 198.6
Projected Demand for Industrial Land
The amount of additional land needed to support the calculated demand for industrial space in
Dakota County from 2008 through 2030 is shown in Table 32. The table shows demand by five
year increments and for each of the County's 11 larger communities as well as for the smaller
communities and townships collectively.
TABLE 32
DEMAND FOR INDUSTRIAL LAND (ACRES) BY COMMUNITY
DAKOTA COUNTY
2000 - 2030
2008- 2010- 2015- 2020- 2025-
. 2010 2015 2020 2025 .2030 Total
Apple Valley 3 - 6 10 - 13 8 - 10 ~ 6 - 8 5 - 7 27 - 44
Burnsville 11 - 14 24 - 26 18 - 20 13 - 15 11 - 14 65 - 89
Eagan 52 - 54 70 - 72 52 - 55 36 - 38 33 - 35 207 - 254
Farmington 2- 5 8- 10 6- 8 6- 8 6- 9 22 - 40
Hastings 2- 3 2- 4 1- 3 5- 7 4- 6 9- 24
Inver Grove Heights 16 - 18 38 - 41 29 - 31 19 - 21 17 - 20 100 - 131
Lakeville 30 - 33 73 - 75 55 - 57 52 - 54 47 - 49 205 - 268
Mendota Heights 8 - 10 10 - 12 7 - 9 6 - 9 6 - 8 30 - 48
Rosemount 4-7 14-17 10-13 11 -13 10-12 38-61
South St. Paul 3- 5 6- 9 5- 7 3- 6 3- 5 17 - 32
West St. Paul 0-1 0-1 0-1 0-1 0-1 0-6
Subtotal 132 - 156 256 - 280 190 - 214 156 - 180 142 - 166 720 - 996
Remainder of Dakota Co. 0- 1 0- 1 0- 1 0- 1 0- 1 0- 6
Dakota County Total 132 - 157 256 - 281 190 - 215 156 - 181 142 - 168 720 - 1,002
Sources: Maxfield Research Inc.
MAXFIELD RESEARCH INC. 7g
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CITY OF HASTINGS
DAKOTA COUNTY, MINNESOTA
RESOLUTION
A RESOLUTION ESTABLISHING AN ECONOMIC DEVELOPMENT AUTHORITY
WITHIN THE CITY OF HASTINGS, MINNESOTA
Dated September 15, 2008
Council Member
adoption:
introduced the following Resolution and moved its
BE IT RESOLVED by the City Council of the City of Hastings, Minnesota (the "City"), as
follows:
SECTION 1: BACKGROUND: FINDINGS
1.1 The City is authorized by Minnesota Statutes, Chapter 469 (Act) to establish a municipal
economic development authority to coordinate and administer economic and
redevelopment plans and programs of the City.
1.2 The City Council has determined that the encouragement and the financial support of
economic development and redevelopment in the City is vital to the orderly development
and financing of the City and in the best interests of the health, safety, prosperity and general
welfare of the citizens of the City.
1.3 The City Council has determined that the economic development and redevelopment of the
City can best be accomplished by the establishment of an economic development authority
as authorized by the Act.
1.4 The City Council has, in accordance with the Act, provided public notice and conducted a
public hearing on September 15, 2008, concerning the establishment of an economic
development authority, at which all persons wishing to be heard expressed their views.
SECTION Z: ENABLING RESOLUTION
2.1 The City Council hereby establishes an economic development authority within the City to
be named the "Hastings Economic Development and Redevelopment Authority" (the
"EDA"). The EDA will come into existence and begin to exercise powers on January 1,
2009.
2.2 The EDA's governing body shall consist of a total of seven (~ commissioners, two (2) of
which shall be members ofthe City Council. All commissioners shall be appointed by the
Mayor with the approval of the City Council. Those initially appointed shall be for terms of
one, two, three, four and five years, respectively, and two members for six years. Thereafter
C.
all commissioners shall be appointed for six year terms. A member may serve two
consecutive terms or 12 years whichever comes first. A vacancy is created whenever a
commissioner who is a sitting council member leaves the council. A vacancy for this or
another reason must be filled for the balance of the unexpired term, in the manner in which
the original appointment was made. The City Council may set the terms of the
commissioners who are members of the City Council to coincide with their terms of office
as members of the City Council.
2.3 The EDA has all powers and duties that may be granted to an economic development
authority set forth in Section 469.090 to 469.108 of the Act and any other law, except as
limited by this resolution.
2.4 The following limits apply to the EDA and its operation:
a. The sale of bonds or other obligations of the EDA must be approved by the City Council.
b. The EDA must follow the budget process in accordance with City policies, ordinances
and resolutions. The EDA will be treated as a component of the City for financial
reporting purposes and the financial management of the EDA will be performed by the
City's Finance Department.
c. Development and redevelopment actions of the EDA must be in conformance with the
City's comprehensive plan and all other controls implementing the comprehensive plan.
d. The EDA must submit its plans for development and redevelopment to the City Council
in accordance with City planning procedures and law.
e. The administrative structure and management practices of the EDA must be approved
by the City Council.
f. The EDA must obtain City Council approval for acquisition of property for economic
development purposes through the use of the powers of eminent domain,
g. The EDA must submit all planned activities for influencing the action of any
other governmental agency, subdivision, or body to the City Council for approval,
2.4 As provided in the Act, the City Council intends that nothing in this resolution nor any EDA
activities are to be construed to impair the obligations of the City or the City's housing and
redevelopment authority under any contracts nor to affect in any detrimental manner the
rights and privileges of a holder of a bond or other obligation previously issued by the City
or the City's housing and redevelopment authority.
SECTION 3: IMPLEMENTATION
3.1 The City Council will from time to time and at the appropriate time adopt such ordinances
and resolutions as are required and permitted by the Act to give full effect to this resolution.
3.2 The Mayor, City Administrator, and other appropriate City officials are authorized and
directed to take the actions and execute and deliver the documents required to give full
effect to this resolution.
3.3 Nothing in this resolution is intended to prevent the City from modifying this enabling
resolution to impose any new or different limitations on the EDA as authorized by this Act.
Council Member made a second to the foregoing resolution and upon
being put to a vote, the following Council Members voted in favor of said Resolution:
Ayes:
Nays:
Absent:
Whereupon the Mayor declared the Resolution duly adopted by the Hastings City Council.
ATTEST:
Melanie Mesko Lee, City Clerk
CERTIFICATION
Paul J. Hicks, Mayor
Melanie Mesko Lee, City Clerk of the City of Hastings does hereby certify the foregoing resolution
is a true and correct copy of the Resolution that was duly adopted at a regular meeting of the City
Council ofthe City ofHastings held September 15, 2008.
Melanie Mesko Lee, City Clerk
(seal)