Community Development Advisory Board

CITY OF DERBY MEETING OF THE COMMUNITY DEVELOPMENT ADVISORY BOARD REGULAR MEETING May 27, 2015 4:30 PM - 5:30 PM The mission of the Community Development Advisory Board (CDAB) is to monitor and maintain the city's economic development plan; make recommendations to the City Council on development projects for which city incentives are requested; propose changes to policies governing economic development activities; and advocate for programs and activities that will improve the city's economic conditions. 1. Roll Call Margaret Fritzler Dwayne Gentry Anndria Obeirne Dale Smith Matt Quinn Jason Wojteczko 2. Introduction of Chamber Appointee 3. Public Forum 4. Regular Meeting Minutes - February 18, 2015 Recommend a Motion to: Approve the regular meeting minutes of February 18, 2015 as presented. 5. Development Manager Report 6. Draft Economic Development Plan Review Recommend a Motion to: Direct staff to formulate a final plan to present to the board at the August 26, 2015 meeting. 1 7. Chamber Update 8. Adjournment 2 Community Development Advisory Board 4. Meeting Date: 05/27/2015 Submitted By: Taylour Tedder, Development Manager Subject: Regular Meeting Minutes - February 18, 2015 Recommend a Motion to: Approve the regular meeting minutes of February 18, 2015 as presented. Attachments Minutes 3  COMMUNITY DEVELOPMENT ADVISORY BOARD MINUTES December 10, 2014 4:30 PM – 5:30 PM CITY OF DERBY ROLL CALL MEMBERS ABSENT Margaret Fritzler Anndria Obeirne Dale Smith X Jason Wojteczko Jean Garinger Dwayne Gentry OTHERS PRESENT: Kathy Sexton, City Manager Taylour Tedder, Development Manager Jake Trease, Derby Informer Meeting was called to order at 4:30 p.m. PUBLIC FORUM OPENED PUBLIC FORUM CLOSED CONSIDERATION OF MINUTES – December 10, 2014 Moved by Dwayne Gentry, seconded by Margaret Fritzler, to approve the regular meeting minutes as presented. VOTE: 4-0 (Smith Absent, Garinger Abstain) DEVELOPMENT MANAGER REPORT: Taylour provided an overview of the West End Study progress and upcoming events. He also reviewed information from the International Economic Development Council’s Business Retention and Expansion course. PAST BUSINESS SURVEY RESULTS: Taylour provided a review of the past business survey and results. Margaret asked how the survey results compare to businesses in other cities. Taylour replied the outlook was similar to other communities for the time period. Anndria asked if there are plans for another survey. Taylour replied with retention visits and asking targeted questions, we can get the same or more valuable data without the traditional survey. 4 Jean said she thought our business park walking tour was valuable and we should continue doing business walks. Jason asked if there is a national standard on surveys, and who built it. Kathy replied she is not sure what Allison used to create the survey. It is highly customized to Derby. When you see the results, it is interesting. The previous board decided it wasn’t worth the time, effort, and money to continue additional surveys. Jason agreed and suggested to get hands-on with businesses, do the job for a day, to help them improve performance. Kathy said the Blueprint for Economic Growth (BREG) cluster plan will allow a focus on seven industry clusters and identify ways to help advance and grow businesses. Jason asked if there are many businesses that fall into these categories in Derby. Kathy said we do have several and it seems we find a new one every now and then. The economy has prompted many businesses to diversify with the companies they provide work for and increased exporting. Jason asked if it was possible to start getting to know our new and existing businesses. Taylour replied when someone comes in to get a business license, we welcome them, ask if they need any assistance, take them to the Chamber, and send out retention letters to offer services to existing businesses. Kathy said with email addresses on the business registration we can send out the Derby News Update and offer services. The businesses will have Taylour’s contact information to reply with questions. ECONOMIC DEVELOPMENT PLAN BRAINSTORMING: Taylour provided a review of the businesses in the incentives policy that bring a positive return on investment. He also provided a timeline for the draft Economic Development Plan approval. Anndria asked if we have a cap or point where we want to stop growing before Derby becomes different than our current community feel. Jean said she felt the same way but since we are land locked we can’t grow much further. Kathy said we have McConnell Airforce Base between Derby and Wichita, as well as a clear zone, and have agreed to not encroach on that space. 55th street serves as our north boundary, and it is hard to go west due to the river. We have a plan with Mulvane and Rose Hill, and 95th street is the ridge line beyond which it is cost prohibitive to extend sewer lines. Growth to the east will be our primary development area. The comprehensive plan will be updated in 2016 and will build on this and the Economic 5 Development Plan. The West End Study will assist in redevelopment of the K-15 corridor and West End area. Jean said parking is an issue along K-15. Kathy said KDOT widened the highway in 2005, and it utilized right-of-way that reduced parking for the businesses. The West End plan will hopefully address this. Jason said Mulvane will want to protect their tax interests for their school district. Kathy replied the Derby school district now allows your choice of school district, you have to fill out a form, and it does matter to people where they buy a house and who the districts can accommodate. Anndria said we should have businesses bid on naming the new parks. Kathy said the new parks will be a great offering for residents and transform the areas. Jean asked what it would take to get a hospital. Kathy said hospital market models and the medical industry have changed. We do have a need for an emergency room. Many hospitals now are reorganizing and changing the way they do business. We would love to have both a hospital and emergency room but we have to wait for them to be ready. With Chick-Fil-A and Olive Garden, we draw customers from Arkansas City and Wellington, but since they have hospitals we would not have the same market draw. Anndria asked to go through each category of the plan to ask everyone what they would like to see stay in, add to, or remove from the plan. Taylour provided a review of each section. Jason said he would like to add growth, expansion, and value to the retention section. Kathy said what we want is for businesses to expand. Taylour said we have the Business Center at the library and will reword the strategy to encourage use and growth of the space to run a business and receive business resources. Dwayne said we should prioritize businesses with importance for retention visits in relation to the clusters and high-value industries. Anndria said it would be good to include a plan for a downtown area, to be able to park and walk. Jason said K-15 has its own qualities and Rock has its own qualities. Kathy said this is the interesting thing about a suburb. We don’t have historic limestone buildings, we don’t necessarily have a walkable commercial district, and we have two 6 commercial districts. This is why Madison Avenue Central Park will serve a purpose for walkability and increased business redevelopment in the area. Coffee shops and book store may be a start of this process. Jean said several businesses are empty and blighted in the K-15 area. It is becoming blighted, and we need to get in front of it before it gets worse. Warren Riverview Park will draw attention to the area and will make a big difference for people to come to the area. Kathy said the parks are situated to help the business community and will also benefit the residential areas. Jason said it would be great to connect the parks to allow people to walk between them. Dwayne asked if the target industries for businesses would be regional. Taylour said yes, we are going to utilize the BREG regional clusters for that section. Taylour noted the HOME grant was finished and will remove this strategy from the plan. Jason said we need to focus on revitalization of older neighborhoods. Taylour said the marketing section efforts should continue but reword the social media portion. Jean said educational pieces would be helpful for marketing. Dwayne said to continue work on the website; it is much better than others he has seen. Kathy said the community marketing piece wasn’t something we used to do. The airport display, billboards, Shop Derby, and Parade of Homes are all examples of what we can continue in regards to marketing the community. We will design a new airport display after the new airport has been open for a while. People love the feel of Derby, now they don’t have to leave to shop. Jean is excited about new photo opportunities with the new park developments. Jason said the connection to the river is a big future driver of growth. Kathy said people want public spaces in lieu of larger backyards. Jean asked if it is in our plan to continue advertising the business park. Kathy said marketing West End Business Park will be included in the plan. We have just begun promoting the park since the new road was opened. Taylour said many prospects are positive about the new road and with grading of the remaining lots they will be more attractive to buyers. 7 Anndria Obeirne moved, seconded by Dwayne Gentry, to direct staff to formulate a draft plan and present to the board at the May 27, 2015 meeting. VOTE: 5-0 (Smith Absent) CHAMBER UPDATE Taylour provided a listing of upcoming Chamber events. Anndria Obeirne moved, seconded by Dwayne Gentry, to adjourn. VOTE: 5-0 (Smith Absent) Meeting adjourned at 5:53 p.m. 8 Development Manager Report Development Performance Measures – March & April 2015 Current Period Year to Date Previous YTD Derby Business Requests 62 99 21 for Assistance New Business and Other 44 80 123 Requests for Assistance Development Highlights – Business requests in 2015 have greatly increased. There were many Derby residents looking to start a business, and current businesses looking for information on expansion possibilities. The total level of interest is higher than during the same time period last year.  Continued coordination with businesses and national retailers looking to locate in Derby.  Businesses continue to respond favorably to the monthly email to registered businesses with the Derby News Update attached. An average reply is five businesses per email that contact me for additional information or need assistance.  Business seminars were held on April 15th and April 22nd at the Derby Public Library to assist business owners. “Franchising Basics” was offered by Transworld Business Advisors with an attendance of ten. “Low and No Cost Marketing” was offered by the Kansas Small Business Development Center with an attendance of five (low turnout due to cancellation of scheduled date, then rescheduled).  Met with business and property owners along Red Powell and Nelson Drive to communicate that options are currently being reviewed for the intersection, to offer additional signage, and to share a truck route map. The information was generally well received and the businesses were appreciative.  Attended the BREG (Blueprint for Regional Economic Growth) town hall meeting to learn more about the changing industry clusters for the region and how working together can increase high-value jobs, companies, and workforce.  New businesses coming to Derby: o Casey’s General Store, Patriot Ave. & Buckner St., opening late May o Credit Union of America, Rock Rd. & James St., opening summer 2015 o Hobby Lobby, north of Dillons Marketplace, opening fall 2015 o The Little Clinic, inside Dillons Marketplace, under construction o Subway, south end of Derby Rock Centre at Rock Rd. & Patriot Ave., now open o TJ Maxx and Ross Dress For Less, north of Hobby Lobby, site plan approved o The Mattress Firm, north of Meritrust on Rock Rd., site plan approved o Pita Pit, near Buffalo Wild Wings in previous Cherry Berry space, under remodel o Chipotle, south of Olive Garden, under construction  Spent significant time interviewing West End businesses (12) and working on the redevelopment plan. The attached flyer reviews three of the many draft recommendations.  On March 24, 2015, the City Council amended the policy on hotel development. New event space and meeting rooms will be available at the two new parks. The prior policy incentivized meeting rooms. The policy is attached for review. 9  Vacate Right-of-way Considerations • Existing businesses desire to expand. • Small parcel sizes constrain business expansion and parking capacity. • Many alleys are platted but not paved/utilized. Recommendation Vacate unnecessary street and alley rights-of-way. Desired Results Project Overview • Revert right-of-way properties. ownership to adjacent • Establish a vision for the West End. Questions • Identify barriers to business growth and investment. • Are there other rights-of-way or alleys that should • Recommend actions and infrastructure improvements to encourage be considered for vacation? investments in the West End. • Are there unintended impacts that would result Britain from the proposed vacations? Buckner Walnut River Madison 4 Descriptions of Recommended Right-of-Way Vacations 2 Emma 6 Louisa Pittman St. right-of-way west of Buckner St. 8 9 Main North/south alley between River St. & Water St. from Madison Ave. to ½ block south of Kay St. 7 North/south alley between Water St. & Buckner St. from ½ block south of Market St. to ½ block south Kay St. North/south alley between BNSF railroad & Buckner St. Market 10 from Madison Ave. to BNSF railroad. North/south alley between BNSF railroad & K-15 from Washington Ave. to alley on Pittman St. alignment. Washington North/south alley between K-15 & Georgie Ave. Water 5 from Emma St. to alley ½ block south of Emma St. North/south alley between K-15 & Georgie Ave. 1 11 Pittman from Main St. to ½ block south of Main St. 2 3 East/west alley between Emma St. & Main St. from Buckner St. to alley ½ block east of Buckner St. s Arkansa Kay East/west alley between Emma St. & Main St. from K-15 to Georgie Ave. East/west alley between Market St. & Washington Ave. Sunnydell from alley ½ block west of Water St. to BNSF railroad. East/west alley on Pittman St. alignment R i v er Lakeview from BNSF railroad to K-15. Kokomo Derby Belmont Dedicated Rights-of-Way Belmont Derby City Limits Baltimore Georgie West End Study Area 10 Listening to Derby Community Forum - April 23, 2015 1 Business Signs Considerations • Business signage lacks a uniform design and creates visual clutter. • Many signs along K-15 block the view to the businesses they advertise. Recommendation Standardize signage along K-15. Desired Results • Reduce visual clutter. • Improve business visibility. • Create consistency & identity. • Improve sign spacing & placement. Questions • Would the K-15 corridor benefit from a uniform signing Property Maintenance plan? Considerations • How could a signing plan be implemented? • Not all properties are well maintained. • There are several existing vacant and deteriorating structures. • Buildings in poor condition create a negative perception. • There are costs associated with addressing abandoned or deteriorating structures. Recommendation 1 Develop and enforce property maintenance standards. Desired Results • Prevent structures from becoming dilapidated or unsafe. • Reduce negative impacts to adjacent properties. • Utilize a proactive approach to overcoming an identified barrier. Recommendation 2 Protect health, safety, and welfare by considering the removal of deteriorating, unsafe or uninhabitable structures. Desired Results • Remove unsafe structures and pest/vermin habitats. • Protect adjacent property values and public safety. Question • How should the community address deteriorating, uninhabitable and unsafe structures? 11 Listening to Derby Community Forum - April 23, 2015 2 Policy Statement on Hotel Development City of Derby, Kansas As Amended by the City Council on March 24, 2015 This policy statement is to advise interested developers of the City’s expectations for development of a second hotel property in Derby and our intent to provide specific types of assistance for one additional hotel project that meets the qualifications. Section 1. Hotel Qualifications The City wishes to attract a project offering the following attributes:  A recognizable hotel “flag” with a minimum of 60 rooms in any combination of single, double or suite configurations Section 2. Developer Qualifications and Participation To ensure the best success for a hotel project involving City participation:  The developer must demonstrate a good understanding of the local lodging market and show independent research supporting the proposal.  The developer must have project equity equal to at least 20% of the total project cost. Prior experience in building and operating hotel properties is preferred. Section 3. City Participation  Where City participation is warranted, it is recognized that a hotel project may involve Industrial Revenue Bonds with accompanying sales tax exemption and a 5-year property tax exemption beginning at 100% in year one and decreasing by 20% each year.  Transient guest tax rebates will not be approved.  Up-front cash incentives will not be approved. Section 4. Existing Agreements Any incentives for hotel projects shall be evaluated for their potential effect on existing agreements with Derby Hotel, Inc. The highest consideration will be given to incentives that affect existing agreements to the smallest degree possible. Section 5. Existing Policy Other elements of the city’s written “Policy and Procedures on Economic Development Tax Abatements and Incentives” will still apply. 12 Community Development Advisory Board 6. Meeting Date: 05/27/2015 Submitted By: Taylour Tedder, Development Manager Subject: Draft Economic Development Plan Review Background: The City Council adopts an Economic Development Plan every three years, which is used to guide and accomplish economic development efforts. Part of CDAB's primary mission is to monitor and maintain the plan. The current plan was developed for use from 2013 to 2015. At the February 18, 2015 meeting, CDAB reviewed the 2013-2015 plan and provided guidance to staff to prepare a draft 2016-2018 plan. Staff has now prepared the draft 2016-2018 plan for the board's review. Staff will incorporate CDAB comments on the draft plan and present it to the board for final recommendation to the City Council at the August 26, 2015 CDAB meeting. Recommend a Motion to: Direct staff to formulate a final plan to present to the board at the August 26, 2015 meeting. Attachments Draft Economic Development Plan 13  DRAFT Economic Development 2016-2018 Plan Mockry & Sons Machine Company WWW.DERBYWEB.COM 14  DRAFT Business Retention & Expansion Strategy 1: Conduct high-value retention visits to priority cluster businesses to ensure their long-term stability and growth potential. Strategy 2: Sell lots in the West End Business Park and assist businesses in their expansion efforts. Strategy 3: Support and expand the Derby Business Center to inspire and attract start-ups, entrepreneurs, and established businesses. Strategy 4: Partner with Derby Chamber of Commerce to support Derby businesses through opportunities for networking and education. Business Attraction & Development Strategy 1: Support investment and business development in the K-15 corridor, West End, and Derby Corporate Park. Strategy 2: Engage with partnerships with regional and statewide economic development groups to increase name recognition and raise awareness of Derby. Strategy 3: Using target clusters identified in the Blueprint for Regional Economic Growth, identify opportunities for outreach, such as trade shows and other opportunities to reach these target business audiences. Strategy 4: Make quarterly contacts with commercial real estate professionals, increasing the visibility of Der- by in the Wichita metro area. Strategy 5: Review incentive policies and recommend modifications when necessary. Previous plan approved March 12, 2013 15  DRAFT Economic Development Marketing Inside Story Headline Strategy 1: Explore opportunities to advertise Derby to prospective business owners, business development specialists, and real estate professionals. Strategy 2: Develop themed marketing materials to reach out to target industries and businesses. Strategy 3: Participate with community partners in community and regional marketing efforts to attract visitors and tourism. Strategy 4: Promote the Shop Derby event to encourage residents and visitors to support locally grown businesses. Mockry & Sons Machine Company Strategy 5: Enhance website information to better promote business opportunities in Derby. 16  DRAFT About the Derby Community Development Advisory Board The mission of the Community Development Advisory Board (CDAB) is to monitor and maintain the city's economic development plan; make recommendations to the City Council on development projects for which city incentives are requested; propose changes to policies governing economic development activities; and advocate for programs and activities that will improve the city's economic conditions. The six-member board meets quarterly. Each member serves a two-year term. One board member is designated by the Derby Chamber of Commerce and serves a one-year term. 2015-2016 Community Development Advisory Board Members:  Margaret Fritzler, Retail Loan Officer, Intrust Bank  Anndria Obeirne, HR Generalist, Spirit AeroSystems  Dale Smith, Retired Pharmacist  Dwayne Gentry, Dentist, U.S. Air Force  Jason Wojteczko, Owner, Compass Rose Aviation  Matt Quinn, Chief Operating Officer, Mid-America Orthopedics Derby’s mission is to create vibrant neighborhoods, nurture a strong business community and preserve beautiful green spaces. Derby’s vision is to be a community where dreams take root and thrive. www.derbyweb.com 17