HomeMy WebLinkAbout03-07-13 Economic Development Council minutes, draft with attachments1 of 4
City of Bozeman
Economic Development Council (EDC)
Meeting Minutes
March 7, 2013
10:30 – 12 pm
City Commission room, City Hall, 121 N. Rouse
Members Attending: Anders Lewendal (Contractor) Cheryl Ridgely (Bozeman Deaconess
Hospital), Stuart Leidner (Prospera Business Network) Daryl Schliem (Bozeman Chamber of
Commerce)
Members Absent: Tracy Menuez (Human Resource Development Council), Erik Garberg (Civil
Engineer), Teresa McKnight, (Montana State University Innovation Campus), Deputy Mayor
Jeff Krauss (liaison)
Staff Present: Brit Fontenot (City Director of Economic Development and Community
Relations), Aimee Brunckhorst (Deputy City Clerk)
Guests / Public Present: Jason Bacaj (Bozeman Daily Chronicle), Chris Mehl, City
Commissioner, Earl Matthers (County Administrator)
NOTE: These minutes are not word for word and should be considered in addition to the audio
recording of the meeting.
A. Call to Order
Chairperson Daryl Schliem called the meeting to order at 10:35 a.m.
B. Public Comment
Mr. Schliem opened public comment.
Seeing no public comment, he closed public comment.
C. Minutes – February 7, 2013
Motion and Vote to approve the minutes of February 7, 2013 as revised.
It was moved by Cheryl Ridgley, seconded by Stuart Leidner to approve the minutes of
February 7, 2013 as revised by Stuart Leidner.
Minutes of the Economic Development Council for March 7, 2013
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Motion passed unanimously.
E. FYI/Discussion (moved up on the agenda)
1. Review of FY14 Economic Development Budget Presentation (Fontenot); and
Mr. Fontenot explained the city budget process and presented a PowerPoint regarding the
preliminary budget for his department. (see attached)
Erik Garberg asked what happens when there are left over funds from the prior budget year.
Mr. Fontenot explained that it depends on the situation. It may be rolled over into the new budget
to cover some of the increase in the economic development budget.
Mr. Fontenot explained that the presented budget does not include payroll expenses. He provided
details regarding what types of accomplishments could happen with another ED specialist. He
also spoke regarding how he came up with the dollar figures proposed.
Mr. Fontenot went over the goals of the economic development plan and the priorities of the
Economic Development Council and submitted that the city and the council have been working
on these goals and priorities diligently every day.
Mr. Leidner said the Council would like to be supportive of Mr. Fontenot’s efforts and the
proposed budget.
Mr. Fontenot said it would be helpful if Economic Development Council members could attend
when this budget is presented to the City Commission for approval. He also said an upcoming
City Commission meeting will look at economic development incentives, impact fee mitigation,
etc. and would be another great meeting for Council members to attend.
Ms. Menuez asked whether the addition of a full time employee would cause duplicative efforts
with the private and nonprofit organizations that deal with economic development.
Mr. Leidner and Mr. Schliem both spoke saying they do not feel efforts would be duplicated
since the ongoing plans the city would like to take on with another person or not currently being
done by other organizations.
D. Action Items
1. Establish a 2 person EDC subcommittee and timeline for drafting the North
Park phase I, request for proposals (Schliem);
Mr. Schliem began speaking on this item, explaining the current status on this project and that a
subcommittee could help set parameters.
Minutes of the Economic Development Council for March 7, 2013
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Mr. Fontenot said he is looking for two EDC members to volunteer to put together the draft RFP
for developing out the site. He mentioned that there are significant timelines involved in this
project.
Mr. Leidner said since he has already been working on this with Mr. Fontenot, he would
volunteer and chair this subcommittee.
Mr. Schliem said he would also volunteer on this sub-committee.
The Council spoke regarding the timeline for this project. Some materials could be put together
prior to the April 1st meeting, however May is extremely busy for Mr. Leidner with some time
out of town as well.
Mr. Leidner spoke regarding tying in DRC on this RFP.
2. Establish a 2 person EDC subcommittee and timeline for drafting an
economic development incentive program (Schliem); and
Mr. Garberg and Ms. Menuez volunteered for this subcommittee with Mr. Garberg as the chair.
The Council spoke regarding the timeline for this project. Materials will be presented to the
Commission on the incentive program in about a month. This will need to be completed in two
weeks.
Mr. Fontenot explained that this will be likely coming before the Commission April 8th or April
15th. The packet deadlines would be March 28th or April 4th. April 15th would work better, so
the EDC could discuss and approves the materials committee.
3. Establish a 2 person EDC subcommittee to coordinate the City of Bozeman’s
economic development marketing effort (Schliem).
Cheryl Ridgely volunteered for this subcommittee and said she would chair this effort.
Anders Lewendal volunteered for this subcommittee.
The goal for the timeline for this subcommittee is May/June.
The Council spoke regarding timelines and expectations for the sub-committees. (See notes
under each subcommittee.)
Motion and Vote to establish the above three subcommittees with the noted members and
chairs.
It was moved by Stuart Leidner, seconded by Tracy Menuez to establish the above three
subcommittees with the noted members and chairs.
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The motion passed unanimously.
E. FYI/Discussion
1. Review of FY14 Economic Development Budget Presentation (Fontenot); and
See notes above action items - this item was moved up in the agenda.
2. Review of the City of Bozeman’s playbook and 2013- 2014 priorities
(Fontenot).
Mr. Fontenot explained that the city has been working extensively on creating clarity. He
provided a presentation on the playbook (see attached) and noted that the number one priority as
recently adopted by the Commission is to diversify the local economy and support the creation
and expansion of mid to high paying jobs.
Ms. Ridgely asked for clarification regarding whether the EDC is responsible for Item 4.
Enhancing downtown development opportunities.
Mr. Fontenot stated he does feel item 4 falls under economic development. He continued his
presentation on the adopted priorities of the Commission.
Mr. Schliem asked for an update from Commissioner Chris Mehl regarding the Story Mansion.
Commissioner Mehl explained that the City Commission will be discussing the Story Mansion
shortly and briefly provided some scenarios that could happen with the Story Mansion.
1. Adjournment
Daryl Schliem adjourned the meeting at 11:26 a.m.
* NOTE – Full audio of this EDC meeting is available at www.bozeman.net.
http://weblink.bozeman.net/WebLink8/Browse.aspx?dbid=0&startid=50792
____________________________________
Daryl Schliem, Chairperson
PREPARED BY:
____________________________________
Aimee Brunckhorst, Deputy City Clerk
Approved on:
I. FY 14 Proposed Budget for
Economic Development
Operations; and
II. FY 14 Proposed Budget for
Expansion of Economic
Development Resources,
Programs and Activities
Economic Development
FY 2014 Proposed Budget
Economic Development
FY 14 Proposed Budget for
Economic Development Operations
FY 12 Operational
Budget
$48,135 Operations
$125,600
(approximate value
of one and one half
mills) – Gallatin
College
FY 13 Proposed
Operational Budget
$61,000 Operations
($12,865 increase
from FY 12)
$125,600 – Gallatin
College (will the
Commission approve
additional funding in
FY14? Where will it
come from? GF or
Millage Increase?)
In FY13 we….
Continued implementation of the adopted ED plan;
Conducted some community outreach;
Hosted an ED Summit;
Assisted with implementation of “business friendly processes”;
Completed the North Park concept land use plan;
Supported cluster development;
Created the South Bozeman Technology District;
Facilitated the development of a downtown hotel;
Assisted with the restructuring of the Community Development
Dept.;
Raised the issue of impact fees and economic development;
Explored an EDIFM Program;
Lead the EDT; and
Served as EDC liaison.
In FY 14 we want to …..
Expand and increase ED outreach, activities and programs;
Continue to improve town/gown relationships, especially with the business college;
Assist with hiring a Community Development Director and implement the structural changes proposed for the
CD Dept;
Actively participate in the BEAR program;
Expand and improve outreach to local, state and national business communities;
Attend and collaborate with local businesses on industry specific trade shows and events to promote
Bozeman as a place to do business, i.e. OIA Show;
Take advantage of professional development opportunities;
Participate in local industry conferences, i.e. Optec;
Assume responsibility of proactively managing at least two of the City’s TIF districts (Industrial and
Technology);
Explore creation of a development authority/entity;
Facilitate development at the MSU Innovation Campus;
Facilitate development at the North Park;
Facilitate development of a downtown hotel;
Foreign Trade Zone;
North Park TIF;
Improve broadband connectivity (broadband steering committee);
Improve and expand cluster development, especially optics and the outdoor industry;
Hire an ED specialist to assist with implementation the ED plan;
Work more deliberately with the EDC; and
Explore the implementation of an ED incentive program.
FY 13 Costs - Where did the $48,135
go?
BUDGETED AND SPENT
$17,200 North Park Concept Land Use Plan and components
(EA Ph 1, Signage, Economic Impact Analysis, LMI Report, etc);
$1, 000 on Montana Site Selector fees and promotional materials
and GBRN promotional materials;
$1,000 on office furniture;
$700 on iPad and accessories; and
$500 on travel/training and misc. operational expenses.
BUDGETED AND UNSPENT
$15,000 identified for intern, outreach and events;
$8,200 travel and training; and
$4,500 contracted services.
Economic Development
FY 14 Proposed Budget for
Economic Development Operations
Increases in the 2014 Economic Development operating budget
are due to a stated desire by the City Commission to increase
resources, activities and programs.
A $12, 865 increase in the FY 14 operational budget accounts for
improving and expanding ongoing projects, i.e. Montana Site
Selector, Gallatin Business Resource Network, as well as
increased presence at industry specific trade shows, i.e. OIA and
OpticsWest, increased participation in local industry shows and
conferences, and increased education and outreach and hosting
and/or sponsoring more ED events. Additionally, the proposed
increases include general resources and professional training
and development for staff working in the area of Economic
Development.
These proposed increases assume a new FTE to administer and
expand existing projects and programs and take advantage of
increased training opportunities.
Economic Development
FY 14 Proposed Budget for
Expansion of Economic
Development Resources, Programs
and Activities
The proposed expansion of the 2014 Economic Development resources,
activities and programs are is in response to a stated desire by the City
Commission to increase overall economic development activities at the City of
Bozeman. Any expansion or increase in activities is predicated on approval for
adding an FTE to the ED Department.
There are five areas of proposed expansion:
Additional FTE, i.e., an Economic Development Specialist with a pay rate of
approximately $50,000. At this pay scale benefits are approximately $17,569.20 for
a total cost of approximately $67,569.20;
An additional $15,000 to expand cluster development activities (esp. in
photonics/optics and the outdoor industry but also includes bioscience,
manufacturing, high-tech and healthcare;
An additional $60,000 to continue the North Park project;
An additional $50,000 to create an ED incentive program, i.e. economic
development impact fee mitigation program (EDIFM); and
FY 14 Funding for Gallatin College at $125,600 (?).
The costs for the proposed expansions, not including operational costs, totals
$318,169.20.
Economic Development
FY 14 Proposed Budget for
Expansion of Economic
Development Resources, Programs
and Activities
Proposed FY14 Budget
Proposed Operational Costs (GF?):
$61,000
Proposed expanded ED resources
activities and programs(GF or raise millage rate?):
Cluster Development $15,000
North Park Development $60,000
FTE (ED Specialist) $67,569.20
Incentives $50,000
Gallatin College (?) $125,600
Total FY14 Budget Request $379,169.20*
FY 14 Budget less the GF request for operations
$318,169.20
*4 Mills = $344,904 or $14.84 per property owner/yr
Economic Development
FY 14 Proposed Budget for
Expansion of Economic
Development Resources, Programs
and Activities
Proposed FY14 Budget w/o funding for
Gallatin College
Proposed Operational Costs (GF?):
$61,000
Proposed expanded ED resources
activities and programs(GF or raise millage rate?):
Cluster Development $15,000
North Park Development $60,000
FTE (ED Specialist) $67,569.20
Incentives $50,000
Total FY14 Budget Request $253,569.20
FY 14 Budget less the GF request for operations $192,569.20*
2 Mills = $172, 452 or $7.42 per property owner/yr
3 Mills = $258,678 or $11.13 per property owner/yr
FY 14 Economic Development Budget
Proposed Funding Sources
• Continue to fund ongoing ED operations in the proposed
amount of $61,000 from the General Fund;
AND
• Increase the number of Mills currently levied by 1, 2, 3 or
4 additional mills for economic development, from 166.75
mills to 170.75 mills, the value of 4 mills is $332,904.
With an increase of 4 mills for economic development,
the City would be 25.87 mills below the statutory limit of
196.62 mills.
• The value of one mill is $86,226;
• In 2012, City residents living in the median
residential home paid approximately $3.71 for each
mill levied. The same home would expect the
following yearly increase if additional revenue was
raised through mills to fund economic development:
• 4 Mills = $344,904 or $14.84 per property
owner/yr
• 3 Mills = $258,678 or $11.13 per property
owner/yr
City Commission’s Economic
Development Objectives
Facilitate job creation and
encourage economic diversity;
AND
Strive to position Bozeman as
the “Most business friendly
community in the state of
Montana”.
Economic development goals
from the 2009 Economic
Development Plan
Support the expansion and retention of existing businesses and
economic clusters that will continue to strengthen and diversify the
economy and create higher paying jobs in Bozeman;
Maintain and upgrade infrastructure to support current and future needs
of business;
Support education and workforce development initiatives to provide
Bozeman with the qualified workers to meet the needs of business;
Leverage local, state and federal economic development resources to
enhance economic growth in Bozeman;
Create a more collaborative and effective working partnership between
the business community and the City of Bozeman and effectively
manage the City of Bozeman’s regulatory environment to accomplish
goals without hindering business expansion and economic growth; and
Maintain the high quality of life that is considered an important asset to
the business community.
Economic Development Council’s
Priorities and Recommendations
Ongoing financial commitment to Economic
Development;
Commitment to a business-friendly process with a
focus on retention and expansion of existing local
businesses;
Stabilize existing local incubators and create a full
service business incubator program to achieve a
healthy business ecosystem;
Core Services and Infrastructure;
Identification and Establishment of Business
Incentives; and
Workforce Development.
Why should we continue to invest in
economic development in the City of
Bozeman?
in·vest - /inˈvest/ To devote one's time, effort, energy and/or
money to a particular undertaking while creating expectations
of worthwhile results.
Local economic development activities build, and rebuild, strong community
relationships and create trusting, long-term community partnerships;
Economic development is intrinsic to long term sustainable development;
A strong economy benefits the entire community;
By investing public dollars in economic development, we invest in the future of our
community. We must develop and share a long term vision, commitment and promise
in building a prosperous and diverse local and regional economy;
Local economic development strategies, while no panacea, are a valid complement to
traditional top-down [Federal] strategies in order to deliver sustainable development
and in many cases may deliver greater economic efficiency by mobilizing local and
regional resources that otherwise may have remained untapped;
Local economic development offers a benefit that is quite valuable to local residents:
more and better job opportunities in their home community;
The cost and quality of life for every household is directly dependent on local
economic conditions;
Business investment has many locational alternatives: We must play to our local
strengths and leverage partnerships;
Business activity creates the revenues to fund local services; and
Economic development is everyone's business.
City of Bozeman Playbook
Create Clarity
Adopted February 25, 2013
CITY OF BOZEMAN CHARTER PREAMBLE
We, the people of the City of Bozeman, under the constitution and laws of the State
of Montana, in order to secure the benefits of local self-government and to provide
for an honest and accountable commission-manager government, do hereby adopt
this charter and confer upon the city the following powers, subject to the following
restrictions, and prescribed by the following procedures and governmental
structure. By this action, we secure the benefits of home rule and self-governance
and affirm the values of representative democracy, professional management,
strong political leadership, citizen participation, and regional cooperation.
Why do we exist? To exercise our citizen mandate to self govern honestly and
efficiently.
How do we behave?
Integrity – Be honest, hardworking, reliable, and accountable to the public.
Leadership – Take initiative, lead by example, be innovative and pursue excellence.
Service – Work unselfishly for our community and its citizens.
Teamwork – Respect others, welcome citizen involvement, and work together to
achieve the best result.
What do we do? Provide for the health and safety of our thriving community for
current and future generations.
How will we succeed?
• Verify that the initiatives represent a priority of the community, city commission,
and city manager.
• Guarantee that management focus on professional delivery of core services and the
health of the organization.
• Use strong leadership to ensure services and initiatives are sustainable or have a
specific life cycle.
What is most important, right now? 2013 – 2014 Priorities
1. Diversify the local economy and support the creation and expansion of mid to high paying
jobs. (Fontenot/Kukulski) (ED-01)
2. Implement the 2012 parks & trails bond to expand the capacity of our parks, trails and open
spaces. (Overton/Rosenberry/Sullivan) (PR-02) (Mayor: 1)
3. Implement reform of the community development system with an enhanced focus on customer
service. (Worthington/Woolard) (CM-01)
4. Enhance Downtown Development Opportunities
• Collaborate with the Downtown Partnership, Montana Department of Transportation and
Transportation Coordinating Committee to improve transportation downtown.
• Facilitate development of a downtown hotel as identified in the downtown development plan.
5. Complete the Integrated Water Resource Plan and develop solutions to achieve long term
water sustainability (Woolard/Sullivan) (PW-01)
6. Implement financial plans and asset management systems to properly maintain and replace
the city’s infrastructure and facilities (Rosenberry/Woolard) (PW-02)
7. Complete design of the police station & municipal court and educate the public on the
necessity for, and passage of, a bond measure (Winn/Price) (PD-01)
8. Assist Gallatin College and secure regional funding. (City Commission)
9. Continue implementation of the Climate Action Plans (City Commission/Winn) (CM-04)
10. Determine the future of Bogert Pool and next steps for aquatics & Recreation
(Overton/Kukulski) (PR-01)
11. Consider a Demolition by Neglect ordinance
12. Develop a permanent plan for the Story Mansion
Who must do what?
Name Title General Responsibilities
Sean Becker Mayor Leader of the policy body, presides over
meetings, represents city in
intergovernmental relationships,
ceremonial head of the city
Jeff Krauss Deputy Mayor Serves as Mayor whenever the Mayor is
unavailable, member of the policy body
Cyndy Andrus City Commissioner Elected member of the policy body;
representative of the public; and
advisory board liaison
Chris Mehl City Commissioner Elected member of the policy body;
representative of the public; and
advisory board liaison
Carson Taylor City Commissioner Elected member of the policy body;
representative of the public; and
advisory board liaison
Chris Kukulski City Manager Executive Team Leader, facilitator
between City Commission and
Leadership Team.
Chuck Winn Assistant City
Manager
½ of City Management Team,
responsible for initiatives that cannot
fail.
Greg Sullivan City Attorney Legal advice, risk management, counsel
and consulting, education, documents
(contracts, reports, etc.
Ron Price Chief of Police Provide expertise and services in law
enforcement and community safety.
Provide for order over chaos.
Greg Megaard Acting Fire Chief Public safety, public education/safety,
inspections, plan reviews, emergency
reports.
Mitch Overton Director of Parks and
Recreation
Public health and wellness, facilities and
programs to enhance community quality
of life.
Brit Fontenot Director of Economic
Development
Facilitate prosperity.
Anna Rosenberry Administrative
Services Director
Human resources systems, financial
systems, information technology
systems, risk management, counsel and
consulting.
Craig Woolard Director of Public
Works
Physical infrastructure, construction,
operations and maintenance. Executive
team member, community/public
outreach
2013 Leadership Team
Expectations & Obligations Quad
Commission expectations of Staff
• Be diligent and prepared
• Communicate simply and thoroughly
• Minimize surprises
• Be ethical and objective
• Be dedicated
• Be creative and take risks
• Be experts in your field
• Implement policy skillfully
• Understand the value of citizen trust
of our local government
Staff expectations of the Commission
• Provide clear direction - speak as a
“body”
• Realistic expectations – time &
resources to do a good job
• Acknowledge work; workload;
professional perspective
• Provide the opportunity for
constructive dialogue and feedback
• Minimize surprises and frontload
questions when possible.
• Provide mutual respect
• Be prepared
Commission obligations to Staff
• Act in a transparent, ethical, respectful
manner
• Be prepared and ask good questions
• Respect constraints
• Set policy, goals and priorities – then
fund
• No ad hoc decisions
Staff obligations to the Commission
• Anticipate issues and provide
options and solutions
• Maximize our resources
• Providing accurate and complete
information - candid advice
• Coordination amongst our staff
• Provide sound recommendations
with highest probability of success
• Mutual respect
• Be available and to listen
• Carry out whatever decision is
made