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HomeMy WebLinkAboutIV.A - Strategic Plan for Economic Development Memorandum To: HEDRA From: Rusty Fifield, Economic Development Coordinator Date: June 7, 2019 Subject: Revised Strategic Plan for Economic Development Thank you for the discussion on the proposed Strategic Plan for Economic Development at the May 9 Joint Meeting. You provided some very helpful feedback. This feedback, the discussion at the June 3 Council work session with developers, and other input, led to the attached revised Strategic Plan. The Plan has been modified to better reflect the input I have received from the City Council and from HEDRA. The modifications focus on three aspects of the Plan: 1. The Context section has been restructured and broadened. My objective is to create a clearer explanation of why the City is involved with economic development and why are we taking the actions set forth in the Plan. I believe that the revise plan does a better job of telling this story. 2. The Immediate Action items have been adjusted to better match the overall direction and the specific issues I have heard in our discussions. I believe that these Actions address the critical near-term economic development needs. 3. HEDRA has the lead role in implementing the Plan. This approach does not minimize the importance of the City Council in economic development. The Plan is a recognition of the relevant statutory powers of HEDRA and its capacity to focus on implementation. The City Council can focus its attention on the interaction of economic development with the overall operation of city government. I hope that you will take some time to review this draft prior to our meeting. I will briefly review the draft Plan at the meeting on June 13 and address your questions and comments. If possible, I would like HEDRA to approve the Strategic Plan for Economic Development. We will immediately begin work on the Action Plan and use the Plan to communicate to other stakeholders. As you review the revised Plan, please remember that it covers the next 18 months through the end of 2020. Our experience in the coming months will provide excellent guidance when we revisit the Plan next year. I am looking forward to working with you to swiftly make progress on the action items in the Plan. The Plan will be an important tool to guide our efforts internally and to communicate with our partners and the community. If you have questions or comments about the Plan, please let me know. I would welcome the chance to meet and discuss them with you. Strategic Plan for Economic Development Draft #2 June 2019 ii Contents 1. Introduction ................................................ 1 2. Context ....................................................... 3 Location .................................................. 3 Key Trends.............................................. 5 Community Assets ................................. 11 Implications .......................................... 13 3. Framework ................................................ 14 Guiding Principles .................................. 14 Roles and Responsibilities ....................... 15 4. Action Plan ................................................ 17 Framework ............................................ 17 Ongoing Actions .................................... 17 Immediate Actions ................................. 17 Strategic Plan for Economic Development (Revised) Draft #2 - June 2019 1 1. INTRODUCTION Economic development is an important community issue in Hastings. Over the past three years, economic development has been the focus of planning and goal setting by the City:  Hastings Economic Development Report (2017)  Vermillion Street Corridor Study (2018)  Economic Competitiveness Plan in the 2040 Comprehensive Plan (2019)  HEDRA Strategic Plan (2018)  City Council Strategic Planning Session (2019) In 2019, the City, Chamber of Commerce and School District formed a “Strategic Communications Committee” to better understand economic development and their respective roles. Each of these efforts are pieces of the puzzle. None of them puts the pieces together to provide a comprehensive guide to economic development in Hastings. The objective of the Strategic Plan for Economic Development is not to reinvent the wheel nor to compile all of these existing documents into one. The Plan draws on past work to create a concise, understandable, action-oriented document. The Plan describes the overall economic development framework and focuses on actions to be taken in the next 18 months. After this initial period, the Plan is designed for annual updates to ensure that it remains relevant and useful. Strategic Plan for Economic Development (Revised) Draft #2 - June 2019 2 The Plan helps to align understanding and objectives within city government. The staff and financial resources of the City have a finite capacity. The success of an economic development program is dependent on the City Council, HEDRA, Planning Commission and Staff being on the same page. The Plan also serves as a communications tool, explaining the City’s approach to economic development to the community and helping other stakeholders understand opportunities to partner with the City. Strategic Plan for Economic Development (Revised) Draft #2 - June 2019 3 2. CONTEXT Hastings is blessed with many assets that produce a high quality of life. Economic development should use these assets to attract the type of private investment that helps to enhance Hastings. These assets alone will not attract the development desired by the community. Recent trends in the growth and composition of the community illustrate challenges to sustaining the quality of life. Understanding this context is essential to creating effective economic development policies. Location Hastings’ location is an integral element of the context for economic development. There is a perception that Hastings located “outside” of the Twin Cities region. Part of this perception comes from the fact that Hastings is not connected to the suburban outgrowth of Minneapolis and St. Paul. The map below attempts to illustrate that relationship. The map shows agricultural land use between residential land use in Hastings and Rosemount. Residential development in Rosemount is connected to the outward growth of the region. A large agricultural area separates Hastings from the developed parts of the region. The agricultural/undeveloped land between Hastings and Rosemount is equivalent to making all of the land between Rosemount and the Minnesota River agricultural. Strategic Plan for Economic Development (Revised) Draft #2 - June 2019 4 In reality, Hastings is as close or closer to regional centers that other outlying suburbs. The table below compares the distance between both Downtowns and the Airport from Hastings and other outlying cities. Hastings the lowest overall mileage averaged among these destinations. Distance Between (miles) City Downtown Minneapolis Downtown St. Paul MSP Hastings 31 22 24 Rogers 25 35 36 Victoria 25 34 24 Chaska 26 33 24 Ramsey 28 35 42 Corcoran 21 30 31 Hastings location has other implications for economic development:  Hastings sits on the edge of the Twin Cities region. It faces competition from places in Minnesota outside of the Metropolitan Council’s jurisdiction and in Wisconsin.  Hastings is the only Mississippi River crossing between South St. Paul and Red Wing.  Hastings is not landlocked. Growth can occur through annexation. Strategic Plan for Economic Development (Revised) Draft #2 - June 2019 5 Key Trends Development and demographics are intertwined. People create the demand for development. They buy houses, shop at local businesses and work for local employers. The characteristics of the population shape the nature of development, the demand for services (both public and private), and the ability to pay for those services. Development forms the tax base for local government. These factors influence decisions about undertaking development in Hastings. Effective planning for economic development must consider effects of demographic characteristics and trends. Limited Growth From 1990 to 2000, Hastings’ population grew by 2,759. The population grew by almost 4,000 people from 2000 to 2010. In total, the population increased by more than 43% from 1990 to 2010. Growth has slowed dramatically since 2010. Hastings added just 448 people from 2010 to 2017, an increase of 2%. This limited growth has affected local housing development. Building permit data illustrates the corresponding lack of new housing starts (see chart on next page).  New housing starts peeked at 383 in 2003. This represents more units that were built over the ten-year span from 2008-2017 (329 new units).  Only 272 single-family homes have been built in the past 13 years.  New multi-family housing has only occurred in the past three years.  No new housing for seniors was built during this period.  New medium density housing has disappeared from the local market. 15,445 18,204 22,172 22,620 1990 2000 2010 2017 Population 1990-2017 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 10+ Units 30 30 0 70 0 66 36 0 0 0 0 0 0 0 37 0 88 2-9 Units 172 202 198 104 157 54 4 3 0 2 0 0 0 0 0 0 0 Mobile Home 10 4 0 2 2 1 1 2 0 3 0 3 1 5 1 0 6 Single Family 85 147 95 39 17 9 6 10 4 20 39 37 42 21 22 30 15 0 50 100 150 200 250 300 350 400 450 New Housing Units Strategic Plan for Economic Development (Revised) Draft #2 - June 2019 6 Housing has not recovered from the Recession as well as neighboring cities. The chart below compares new housing built 2010 to 2017. Hastings lags far behind Farmington, Rosemount and Cottage Grove. The triangle in the chart marks the pre-Recession peak year, showing that Hastings was competitive in the market at that time. Another perspective on housing development comes from home builders. Since 2011, one builder accounted for 38% of all building permits for new housing. 38% of permits were issued to builders who built 1-6 homes during this period. None of the region’s 2018 top builders worked in Hastings in 2011- 2018. Over 96% of all housing from 2011 through 2018 occurred on existing plats or on new final plats within larger preliminary plats approved before 2006. This means that the available lot supply is based on pre-Recession development concepts. 0 100 200 300 400 500 600 0 100 200 300 400 500 600 700 800 900 1,000 Hastings Farmington Rosemount Cottage Grove Empire Township Pr e - R e c e s s i o n A n n u a l P e a k To t a l U n i t s 2 0 1 0 - 2 0 1 7 New Housing Units 2010-2017 Single-Family Townhomes Mulifamily Pre-Recession Peak Greg J Homes, 88, 38% Fieldstone Family Homes, 18, 8% Charles Merritt Homes, 14, 6% Harris Builders, 13, 6% Siewert Construction, 9, 4% All Other Builders (44), 89, 38% Builders for New Housing 2011-2018 Strategic Plan for Economic Development (Revised) Draft #2 - June 2019 7 The largest final plat approved during this period created 30 lots. The slow rate of growth makes it difficult to buy and develop larger tracts of land. Changing Population Not only are fewer people moving to Hastings, but the characteristics of the population are changing. The most talked about population trend is the aging of the population. The older population is becoming a larger share of the population. From 2000 to 2017, the population age 65 and older grew by 42% (627 people). The next age group (45-64) increased 40% (1,112 people). This group will move into and grow the senior population. In contrast, the 20-44 age group grew by only 7%, adding 426 people. Without a change in current trends, Hastings’ population will continue to become proportionately older. This trend can also be seen in the composition of households. Between 2007 and 2017, households with children dropped from 40% to 30% of all households. In 2017, the number of people living alone was almost equal to the number of households with children. 0 5,000 10,000 15,000 20,000 25,000 1990 2000 2010 Age of Population 75+ 60-74 45-59 30-44 20-29 19 or Younger 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2007 2017 Household Type Lived alone Non-family households Married families without children Unmarried families with children Married families with children Strategic Plan for Economic Development (Revised) Draft #2 - June 2019 8 One outcome of these population trends is a declining student population for the Hastings School District. The chart below shows the drop in students served from 2010 to 2018. Average Daily Membership (ADM) represents students attending class. A statutory formula converts ADM to Pupil Units that serves as the basis for determining revenue. The School District’s 2019-20 Budget projects a continued decline in Pupil Units through fiscal year 2023-24. Reduced Resources Median household income in Hastings has historically lagged behind the County and the Region. This gap has widened over the past decade. Income has wide ranging effects. Income affects housing affordability, developer decisions on what to build, spending on local businesses, and support for local government spending on service and infrastructure. 53,172 61,232 66,40372,801 86,684 100,10968,477 83,013 98,021 0 20,000 40,000 60,000 80,000 100,000 120,000 2000 2010 2017 Median Household Income Hastings Dakota County Twin Cities Region 4,818 4,681 4,658 4,618 4,551 4,521 4,455 4,429 4,380 5,604 5,468 5,412 5,369 5,295 4,960 4,897 4,869 4,808 - 1,000 2,000 3,000 4,000 5,000 6,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 Student Population - Hastings School District Average Daily Membership Pupil Units Strategic Plan for Economic Development (Revised) Draft #2 - June 2019 9 The lack of growth has affected the property tax base. From 2015 to 2019 (values as of January 2), the total Estimated Market Value (EMV) of taxable property in Hastings (Dakota County) rose from $1.475 billion to $2.030 billion (54%). Unfortunately, only a small portion of this increase came from growth. Value from new construction accounted for just 7% of the additional EMV. Only 25% of new construction value came from commercial and industrial development. Employment The number of jobs provided by businesses located in Hastings rose sharply from 1990 to 2000, helping to fuel the growth in housing in from 2000 to 2007. Total employment fell by 5% from 2000 to 2010 and has remained relatively unchanged since then. A comparison with neighboring cities provides some context for employment trends. Hastings has been, and continues to be, an important employment center. Similar to other development factors, growth in Hastings has lagged behind other places. Hastings is the only city in this group that has fewer total employees in 2017 than in 2010. 1990 2000 2010 2011 2012 2013 2014 2015 2016 2017 Hastings 6,982 9,096 8,596 8,322 8,242 8,473 8,504 8,460 8,385 8,403 Rosemount 4,114 6,356 6,721 7,014 6,925 7,158 8,108 8,482 8,164 7,258 Farmington 2,342 3,986 4,438 4,477 4,424 4,476 4,570 4,779 5,054 4,971 Cottage Grove 4,545 6,263 6,484 6,479 6,211 6,473 6,812 6,974 7,988 8,108 Inver Grove Heights 5,724 8,168 9,442 9,754 9,743 9,741 10,313 10,604 10,617 10,651 Employment in Hastings and Neighboring Cities 0 500,000,000 1,000,000,000 1,500,000,000 2,000,000,000 2,500,000,000 0 20,000,000 40,000,000 60,000,000 80,000,000 100,000,000 120,000,000 140,000,000 160,000,000 180,000,000 2015 2016 2017 2018 2019 To t a l E M V An n u a l C h a n g e i n E M V Increase in Estimated Market Value New EMV EMV From New Construction Total EMV Strategic Plan for Economic Development (Revised) Draft #2 - June 2019 10 The nature of the workforce is an important economic development factor. Only 30% of the persons working in Hastings (in 2015) also lived in Hastings, down from 36% in 2005 and 33% in 2010. Local businesses were able to attract workers from across the region. The flip side of this factor is the location of employment for Hastings residents. In 2015, 45% of the workers living in Hastings also worked in Hastings. This means that 55% of Hastings workers chose to live in Hastings and work in a different city. Hastings 30% St. Paul 11% Minneapolis 7% Eagan 5%Rosemount 4% Bloomington 3% Cottage Grove 3% Inver Grove Heights 2% Burnsville2% Woodbury 2% All Other 31% Residences for Hastings Workers (2015) Hastings45% Cottage Grove 6%Ravenna Township 5% St. Paul 4%Woodbury 2% Inver Grove Heights 2% Eagan 2% Marshan Township 2% Rosemount 2% Lakeville 2% All Other28% Workplaces for Hastings Residents (2015) Strategic Plan for Economic Development (Revised) Draft #2 - June 2019 11 Community Assets Hastings a place with assets that should attract and sustain growth in the community. Community assets create an environment to live and to do business that distinguish Hastings from other places. These assets form the foundation for successful economic development. The following section contains a brief overview of key assets that play a role in the economic development plan. Sense of Community Hastings has a rich history and strong community identity. It is a distinct and identifiable place which stands apart from other suburban communities that are often difficult to distinguish from one another. Hastings residents and business take pride in the community and engage in community life. Physical Setting The combination of the natural and built environments create a unique setting. The Mississippi and Vermillion Rivers provide natural beauty and recreational opportunity. The City’s expansive park system allows the public to experience and enjoy the natural environment. Original neighborhoods have a character and charm that cannot be matched in contemporary subdivisions. The historic and vibrant Downtown connected to well-designed public space on the riverfront is the heart of the community. Community Services There are an abundance of community services that draw people to Hastings. The quality education provided by the Hastings School District is essential to attracting and keeping families in Hastings. Few communities like Hastings have both a hospital and a YMCA. The Dakota County government campus brings thousands of employees and visitors here each week. The City’s Parks and Recreation Department operates facilities and conducts programs that bring people to Hastings. City Government City government plays a critical role in economic development. City services and facilities help to create and sustain the quality of life in Hastings. The City provides the infrastructure required for development and establishes land use controls. The City has a long history of playing an active role in addressing community development and redevelopment needs. The Hastings Economic Development and Redevelopment Authority (HEDRA) has the tools and resources to remove economic and physical barriers to development. Things That Attract Hastings has a significant base of existing assets that bring people to Hastings, including:  Sports tournaments and events at City recreation facilities.  Athletic and performing arts events at local schools.  Events at the YMCA. Strategic Plan for Economic Development (Revised) Draft #2 - June 2019 12  Dakota County government campus.  City programming in Downtown and Levee Park.  Regina Hospital and health care facilities.  Historic Downtown  Riverfront  Trail system These assets and others that bring people to Hastings are valuable elements of economic development. When people are in Hastings, they are potential customers for local businesses. At a minimum, economic development policy should seek to promote shopping in Hastings. The greater value comes from leveraging the economic impact of “visitors”. This means making conscious efforts to give people that come to Hastings for a specific purpose a reason to come back on their own. Creating this return loop is the key to using these assets for economic development. Downtown Hastings has a genuine and active downtown. Downtown Hastings has been a focal point for City economic development efforts. The Downtown business district and the related riverfront parks and trails are a significant community asset. They form the setting for a wide range of community events. Downtown is a key to attracting visitors to Hastings. The opening of Great River Landing adds lodging and events facility to existing attributes. The event of opening Great River Landing is an opportunity to gain some attention. Vermillion Street Corridor The City approved the Vermillion Street Corridor Study in 2018. The Study creates a framework to encourage and guide redevelopment along Vermillion Street. The Study will be used to guide economic development actions along the Corridor. Increasing the vitality of this gateway to Hastings positively affects the community. Redevelopment sites can be good opportunities to attract businesses and housing. Business Park The 230-acre Hastings Business Park was established in 1972 and is not yet fully developed. The City owns approximately 80 acres of developable land. The majority of the land is in one 50-acre parcel. The rest is made up of 12 parcels ranging in size from 1.00 to 3.10 acres. City ownership creates a valuable in promoting development. A 50-acre parcel ready for development and owned by the City is a significant asset not available in many cities. The smaller parcels not only provide locations for new business, but also create a resource for the relocation of business from other districts in Hastings. This relocation is often a key to redevelopment. Strategic Plan for Economic Development (Revised) Draft #2 - June 2019 13 The need for a future business park has been identified in previous studies. The 2040 Comprehensive Plan targets property in southwest Hastings (County Road 46/Jacob Avenue) for this use. Implications The community context defines the challenges and opportunities for economic development in Hastings. Some of the key implications of the community context include the following:  An active role in economic development by the City is important. Demographics trends are not likely to change without action by the City.  These trends are important for the story they tell about Hastings. This information is readily available and used to evaluate potential sites for development. Low growth and economic activity, combined with location, create the impression of an undesirable location for development. If potential developers do not look further, then perception is assumed to be reality. It is important to change both the reality and the perception of Hastings.  The lack of growth may keep existing businesses from expanding due to concerns about sufficient workforce.  There is a large set of assets that attract people to Hastings. Bringing people to Hastings expands the market for local businesses. If visiting Hastings is a positive experience, we have the opportunity to create a “buzz” that changes the story about what is happening in Hastings.  Hastings is a significant employment center and employees already have a connection to the community. With two out of three employees living outside of Hastings, encouraging more people to work and live in Hastings holds potential for growth.  Growth is about more than simply adding to the population. Families with children are needed to sustain the School District. Hastings needs to provide a place that appeals to the interests of this younger generation. Housing for seniors allow older residents to stay in Hastings while freeing up housing for new residents. Adding to the “wealth” of the community increases the viability of retail development and the sustainability of public services. These are among the factors that guide economic development actions for the City. Strategic Plan for Economic Development (Revised) Draft #2 - June 2019 14 3. FRAMEWORK The Context defines the focus for economic development in Hastings. The Key Trends must be reversed. Hastings needs to grow its population to sustain and enhance the community. The best way to achieve that objective is to build on Community Assets. Guiding Principles Growth for the sake of the growth should not be an objective. Growth must be guided by principles that reflect the desires of Hastings. The 2040 Comprehensive Plan is the guide for the future development of Hastings. The Comprehensive Plan identifies the following factors that shape the community’s vision for the future. Economic development represents the initiatives taken by the City to encourage private investment that is in line with these factors and Hastings’ vision for the future. Connected Growth Plan to accommodate anticipated growth in a flexible, connected, and efficient manner. Transportation Plan and invest in multi-modal transportation to better serve the people living and working in Hastings. Housing Encourage expanded choices in housing location and types that provide improved access to jobs and opportunities in the community. Natural Resources Continue to protect and enhance the region’s vital natural resources. Community Character Promote the traditional small town character of Hastings by protecting the look and feel of older neighborhoods and seek to extend traditional neighborhood design principles into new areas. Future Land Use Planning Regulate land use consistently by utilizing the Future Land Use Map along with the goals, objectives and policies of this plan. Sustainable Growth Enhance the sustainable nature of Hastings by investing in established areas, carefully planning new neighborhoods, providing attractive public amenities and protecting environmental resources Riverfront and Downtown Revitalization Continue to restore underutilized downtown and riverfront properties to viable commercial, residential or recreational opportunities. Fringe Growth Adopt and follow a plan for growth, protect perimeter locations for efficient, compact neighborhood expansion that includes commercial and employment opportunities. Neighborhood Protection and Improvement Keep older neighborhoods attractive and vital through improved streets, parks and services, code enforcement, design standards, and selective reinvestment. Strategic Plan for Economic Development (Revised) Draft #2 - June 2019 15 The City uses economic development initiatives to:  Remove the physical and economic barriers to redevelopment.  Attract types of development not provided solely by private market forces.  Leverage private investment to create greater benefit to the community. Rather than create separate statements of vision and mission for economic development, the Plan contains a set of guiding principles. These principles describe the City’s objectives for playing an active role in economic development. The guiding principles also form criteria that can be used to evaluate programs and projects. 1. Retain and grow existing businesses. Economic development must focus in before it looks out. A vital and sustainable local economy depends on the success of existing businesses. Hastings seeks an environment that supports business and encourages them to engage in the community and to grow. 2. Capitalize on Hastings’ unique assets. Hastings offers a setting and community character that can be matched by few cities in Minnesota. These assets are essential to attracting people to Hastings. 3. Balance growth with maintaining high quality of life and community character. The quality of life that brings people and business to Hastings cannot be sustained without growth. Development and redevelopment will be evaluated by how it benefits the community. 4. Create collaborative solutions with other stakeholders. The objectives of this Plan are shared by other groups inside (such as the Chamber of Commerce and the Hastings School District) and outside (such as the Dakota County CDA) of Hastings. Identifying and collaborating with other stakeholders enhances the ability to achieve positive results. The primary purpose of the Economic Development Plan is to describe the actions to be taken by the City (staff, HEDRA and City Council) to address economic development needs of the community. Roles and Responsibilities The City Council and HEDRA play essential roles in implementing the Strategic Economic Development Plan. Ownership of the Plan by the City Council increases the chances that economic development implications will be an overall decision making criteria for the Council. HEDRA is in the best position to lead implementation of the Plan. Fostering the economic development, redevelopment and housing described in the Plan fits the purpose and function of HEDRA. HEDRA’s role helps to prevent economic development from getting “lost” among the myriad of issues that require City Council attention. HEDRA has the statutory powers and financial resources to participate in economic development projects, as needed. Strategic Plan for Economic Development (Revised) Draft #2 - June 2019 16 The day-to-day implementation of the Plan is the responsibility of the Economic Development Coordinator. The Plan serves as the work program for this position. This work will be coordinated with the Community Development Director and the City Administrator. The results sought by this Plan are not the sole responsibility of the City. The City can acquire land, but cannot compel property owners to make land available for development. City does not build, own, or operate the development. Other entities are stakeholders in the outcomes described in this Plan. Establishing strong working relationships with other stakeholders leverages additional resources and enhances the chances for success. All parties should recognize that their interests will not always be aligned and that should not impair collaboration on shared objectives. Strategic Plan for Economic Development (Revised) Draft #2 - June 2019 17 4. ACTION PLAN Framework There are four elements to establishing the Plan – identify, prioritize, agree and act. Past planning has identified a wide range of economic development initiatives for the City. These issues must be reviewed periodically and adjusted to match with current conditions. It is also important to identify public and private actions that create opportunities to achieve additional positive outcomes for the community. These opportunities are often time sensitive and require prompt action. The City does not have the power or resources to address every issue. Prioritizing economic development initiatives involves a series of questions:  What actions can the City take?  What resources are needed?  What time constraints affect City actions?  What outcomes are desired?  Do the actions help to achieve other objectives?  Are there other stakeholders? Prioritizing economic development initiatives seeks to make best use of available resources. The identification and prioritization of economic development initiatives must lead to agreement. Success is dependent upon the alignment of actions between City Council, HEDRA and Staff. Failure to achieve this consensus diminishes the chances to be successful. Further, the roles and responsibilities of parties outside of city government must be understood. The final element of the framework for the Economic Development Plan is to act. The Plan guides the work of City Staff and shapes financial planning and budgeting. Ongoing Actions While the Plan identifies specific actions through 2020, other matters will arise and require attention. Additionally, some economic development functions are ongoing and occur regardless of the annual action plan. Key ongoing actions include:  Establish strong working relationships and communications with key stakeholders inside and outside of Hastings.  Coordinate economic development activities with HEDRA, City Council and City departments.  Manage the “Business” section of the City website to provide relevant and timely information.  Seek new and creative funding sources.  Respond promptly to opportunities. Immediate Actions The impetus of this Plan is to provide a focus for economic development actions for the next 18 months. This time frame is based on the need to prioritize resources for current actions and for the 2020 Budget. Its short-term nature requires the City to annually review and update the Plan. Staff recommends the following priority action items for consideration by the City Council and HEDRA. Strategic Plan for Economic Development (Revised) Draft #2 - June 2019 18 1. Develop and implement strategies for addressing housing issues related to economic development. Providing an appropriate housing stock is essential to addressing growth and demographic issues. While “add more rooftops” is the basic objective, the actual solution is more complicated. Broad community housing needs have not been a part of economic development in Hastings and cannot draw on past plans. Accordingly, the first actions needed are an understanding of the issues and identification of roles for the City. Laying this foundation increases the effectiveness of City actions. Actions related to housing include: 1.1 Evaluate current housing needs to determine: a. Existing barriers to housing development in Hastings. b. Unmet needs for specific housing types including: 1) Senior housing 2) Housing for families with children 3) Higher value homes 4) Housing in redevelopment areas 5) Recycling of older homes. c. Available land within the City. 1) Amount, location and suitability of existing platted lots. 2) Potential from redevelopment sites. 3) Vacant land planned from residential development. 1.2 Review 2019 Dakota County CDA housing needs study for implications for Hastings. 1.3 Work with HEDRA to create specific actions to address local housing needs. 1.4 Present findings and recommendations to City Council 2. Identify and act on opportunities to enhance the environment to operate and locate business in Hastings. Increasing the housing stock and the local population is a critical step in improving the local business environment. In addition, there are several other actions that support existing business and attract new commercial and industrial development to Hastings. 2.1 Work to achieve the successful completion of Great River Landing. 2.2 Work with Parks and Recreation, the Chamber of Commerce and Tourism Bureau, the Hastings School District, the YMCA, and other stakeholders to expand the economic impact of people visiting Hastings for events. 2.3 Work with Parks and Recreation, the Chamber of Commerce and Tourism Bureau, and other stakeholders to create a plan to capitalize on bicycle tourism. 2.4 Evaluate the alternative uses of the 50-acre parcel in the Business Park, make recommendation to HEDRA and implement preferred development strategy. Strategic Plan for Economic Development (Revised) Draft #2 - June 2019 19 3. Create and implement strategies to effectively address redevelopment opportunities. It is in the best interests of the City to deter the deterioration of property and the spread of blight. The number of locations that may need City involvement to facilitate private investment for redevelopment or revitalization exceeds our capacity. Economic development strategies must focus on actions that have the greatest need and/or positive impact. 3.1 Identify and prioritize redevelopment sites in the Vermillion Street Corridor. 3.2 Play an active role in the reuse of the Target property to enhance the positive impact of redevelopment. 3.3 Work to achieve development on City owned property that enhances the Downtown. 3.4 Recommend a redevelopment land acquisition strategy for HEDRA. 4. Solidify internal economic development functions. Manu economic development functions do not specifically fit within the previous actions. These ongoing functions create the framework for effective and efficient operations 2019 brings the hiring of a new Economic Development Coordinator and a new City Administrator. The City website will be updated in 2019. This Plan also clarifies the roles of the City Council and HEDRA in economic development. Keeping all related city bodies and officials informed, engaged and aligned enhances Hastings’ ability to effectively undertake the actions in this Plan.  Help the new City Administrator become informed and engaged with economic development initiative in Hastings.  Update the “Business” section of the website to support this Plan  Provide the City Council and HEDRA with quarterly (or more frequently if needed) written reports on progress made on the actions in this Plan.