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HomeMy WebLinkAboutIV.B - Strategic Plan HEDRA Memorandum To: HEDRA Commissioners From: Rusty Fifield, Economic Development Coordinator Date: June 4, 2020 Subject: Framework for Strategic Plan Update Requested Action No action required. Seeking Board input on framework for 2020 Update of the Strategic Plan for Economic Development. The discussion of updating the Strategic Plan for Economic Development continues at the June HEDRA meeting. The discussion will focus on the proposed framework for the Update described in this memo. The Board input will be used to create a draft report for Board consideration at the July meeting. Please review the following framework for the Strategic Plan Update and be prepared to discuss how it fits as a guide for HEDRA. Strategic Plan Framework The 2020 Update of the Strategic Plan for Economic Development replaces Immediate Actions with Strategic Initiatives as the focal point of the Plan. The 2019 Plan was a starting point. In that context, immediate actions was an appropriate characterization for these activities. Through the efforts to undertake the actions in the 2019 Plan, several enduring strategies have emerged. These Strategic Initiatives will be the focal point of City economic development activities for the foreseeable future. These Initiatives will have the greatest positive effect on the community. The Strategic Initiatives address four critical issues: Spades, housing, redevelopment and business development. Initiative #1 – Explore the Opportunities Presented by Spades Assuming that HEDRA and Spades SBC enter into a preliminary development agreement (PDA) for building the company’s headquarters on Block 1, the focus of the Strategic Plan will be exploring benefits to Hastings from Spades presence. Elements of the Strategic Plan would include:  Working with Spades to create a site and building plan that meets the company’s needs and anchors the east end of the riverfront. This task will include provision of adequate parking, management of traffic and preparation of financial analysis needed to determine sale price for Block 1. Strategic Plan Framework June 4, 2020 Page 2  Preparing a timeline for office construction and business development. The timeline will help to identify the potential need for interim office space and housing for the work force. The timeline will also be useful in helping local businesses connect with Spades.  Creating strategies for becoming a “green city”. The objective of this task is to define what it would mean for Hastings to become a green city, identify potential action steps, evaluate steps that best leverage relationship with Spades, and create proposed multi-year action plan.  Understanding the potential impacts of Spades ability to attract visitors and other businesses to Hastings. These issues affect the other Initiatives in the Strategic Plan Update. Initiative #2 - Meet the Housing Needs of Hastings Perhaps the most important outcome of the 2019 Plan was the recognition of the importance to housing to economic development. The focus of the 2020 Update shifts to the actions needed to meet the housing needs of Hastings. This section of the Strategic Plan incorporates the information contained in the Housing Issues and Needs Report presented to HEDRA in January. The issues discussed in the Needs Report fit into three City policy objectives:  Ensure that the housing stock in Hastings attracts people to move to Hastings and to stay here through all phases of life.  Encourage the construction of new housing.  Maintain the quality of existing homes and the character of neighborhoods. The research performed to date on local housing issues and needs identifies a variety of items that require further exploration. The City does not have the resources to address all of these issues and other economic development initiatives. The City must take a strategic approach to meeting the housing needs of the community. This approach entails several actions: Prioritize issues  As with all aspects of economic development, attention will be given to opportunities given to us. Minus that impetus, however, guidance from the City Council is needed. Staff efforts must be focused on those issues that have the highest priority. Set roles and responsibilities  In addition to setting priorities, the City Council should determine roles and responsibilities of other stakeholders in addressing these issues.  HEDRA will be a key participant in addressing local housing issues. HEDRA began as the Hastings Housing and Redevelopment Authority. It retains the statutory powers of an HRA.  Does the Planning Commission play a role in addressing any of these issues?  How should the Chamber of Commerce, the local real estate sector and the community at large play a role in housing?  How can be resources and expertise of the Dakota County Community Development Agency be applied most effectively? Strategic Plan Framework June 4, 2020 Page 3 Determine next steps  Setting priorities and assigning responsibilities allow HEDRA to take action to address housing issues in Hastings. Initiative #3—Work with property owners and developers to redevelop underutilized and blighted property. As an older community, redevelopment is an essential part of economic development in Hastings. The City has invested time and resources in laying the foundation for redevelopment. The focus of the 2020 Update is to encourage redevelopment in two specific areas: Vermillion Street Corridor and Downtown. Vermillion Street Attracting private investment to the Vermillion Street Corridor is a clear priority for the City. The Vermillion Street Corridor Study is the City’s guide for redevelopment. An often-overlooked element of the Study is the Action Matrix. The Matrix contains 52 separate actions for achieving the City’s vision for Vermillion Street. The Action Matrix has not been extracted from the Study and used as a tool for economic development. A review of this Matrix by HEDRA is a useful next step. The review will answer the following questions:  What is the true nature of action - development guideline/policy, ongoing action, specific task, or something else?  Are all actions still valid? If not, should the action be modified or deleted?  What are the priorities for actions that represent specific tasks? This review helps HEDRA and the City Council identify next steps for staff. and provide guidance for the 2021 Budget. Another important outcome of the Action Matrix review is to identify factors that need to be considered in the upcoming Highway 61 Corridor Study. MNDOT plans to study Highway 61 in Hastings in anticipation of an improvement project targeted for 2025/2026. It is expected that the Study will start in the second half of 2020. The Action Matrix review will be used to create a description of the City’s position on improvements to Highway 61. Downtown Economic development efforts in the Downtown will be shaped by the public health and economic effects of COVID-19, Spades, The Confluence and the Downtown Property Utilization Study.  At this point in time, it is impossible to predict the upcoming effects of COVID-19. It will determine if and how local business will stay in operation. Strategic Plan Framework June 4, 2020 Page 4  Spades hopes to house 200 workers in its headquarters office building. The company also believes that is will attract visitors and other businesses to Hastings. If true, Spades could have a significant impact on Downtown business and The Confluence.  COVID-19 pushed opening The Confluence into 2020. Our economic development efforts seek to build off of the impact of The Confluence.  Each of these factors plays a role in the use of HEDRA property examined in the Downtown Property Study. Initiative #4—Encourage the Creation and Growth of Local Business. A fundamental objective of the Strategic Plan is to encourage private investment that is in line with Hastings’ vision for the future. To date, economic development in Hastings has not focused on a specific type of business. An examination of past trends and current conditions points to the need for a more focused approach that seeks to create and grow local businesses. A local business means a business based in Hastings and not part of a regional or national set of businesses. The rationale for this approach is clear:  Setting aside the 50-acre parcel, the Business Park contains nine parcels ranging in size from 1.0 to 3.1 acres. The 2040 Comprehensive Plan identifies a new business park locate on County Road 46 west of the existing city boundary. There is no plan to acquire or develop this property.  We are competing with other communities with better sites, closer to the regional highway network, access to mass transit, and larger populations for workforce and customers.  Local businesses have deeper roots in Hastings. There is less risk that a business will unexpectedly move to another city.  They often invest more in the community. More business spending tends to stay in Hastings.  Local businesses create more opportunities to live and work in Hastings. Lowering the time and cost of travel to work is a significant quality of life factor.  Money spent on financial assistance is more effective. Funds go to business development and not to incentive competition with other cities. Creating and growing local business is a long-term strategy. While Hastings has experienced small business development, it is not the result of stated objectives or programs. The focus of the 2020 Update will be to understand the needs and to build the assistance to meet local needs. Steps to be taken in 2020/2021 include:  Work with the Chamber of Commerce and Downtown Business Association to identify the most meaningful ways that the City could help grow local businesses.  Conduct focus group meeting of business owners in each business district obtain input and guidance.  Create programs to address needs identified in #1 and #2.  Enhance the City as an information and referral resource for local businesses.  Create programs that help local entrepreneurs to convert their ideas into new businesses.