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City Scoop Continued |
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ECONOMIC DEVELOPMENT IN VICTORIA DOESN’T MEAN GIVING MONEY AWAY City Council and staff held a workshop on May 24th to talk about economic development tools and programs available to the city. Shannon Sweeney, who is with David Drown and Associates, reviewed some of the options. Also in attendance were representatives of the Victoria Business Development Committee and the Victoria Business Owners Association. “I live in Waconia so I know about local projects that have come through the system,” said Mr. Sweeney. He said that cities have been given tools by the state, tools such as the authority to budget and levy taxes, to issue bonds for economic development and land acquisition, to purchase and sell land for economic development, to serve as a partner in economic development. He said that 80% of economic activity in a community comes from people involved in that activity, and that the role of city government is to facilitate the process. “One of the most effective things a council can do is to have a common vision,” said Mr. Sweeney. “A common vision makes an efficient unit of government. Word gets around and people want to do things in your community.” “Also, when a business comes to town that everybody wants, it moves more efficiently through the process,” he said. “It’s an effective economic development tool that doesn’t cost any money.” “Visit your businesses as an elected official,” advised Mr. Sweeney. “Ask them how you can help them grow and expand.” “In Victoria you can levy approximately $150,000 for economic development. It can also be pledged by the city in order to promote a project. But fewer people levy than don’t levy.” “One of the things I like to avoid,” he said, “is giving money away.” In that respect he mentioned the Revolving Loan Program that can help keep the money working. As businesses pay back the loans, the fund is replenished for other businesses asking for a low interest loan. “Low percent loans provide gap financing,” he said. “It takes the place of a portion of the equity. You can use it as an incentive. But you’re going to have a higher rate of risk than the bank. Otherwise the bank would have provided the money to begin with.” He asked rhetorically, “Where do you get the money for a Revolving Loan Fund? From property sales, an EDA levy, excess TIF.” Councilmember Jim Paulsen said it’s very important to him that everybody gets treated the same. Councilmember Tim Amundsen said he gets upset about rumors that it’s difficult to work with the City of Victoria. “This city is fair and easy to work with!” he stated. “It has been alleged that we’re not. Victoria compares well with other cities. We’ve passed some projects in record time. Credit needs to be given. All eyes go to City Hall when there’s an issue and that’s just irresponsible. Businesses can also work with each other.” Reported Holly Kreft, Victoria’s Community Development Director, “Basically, every city uses the same fee schedule with some variations. Most of the fees compare across the board. There is one difference. The City of Victoria does not charge a stormwater fee as part of a development project. The City of Victoria does not charge an administration fee for a development project [related to stormwater]. We don’t collect fees to cover our financial review and research time.” She added, “Victoria does have a park facility fee of $2,500 per unit.” Administrator Don Uram stated, “I believe the city hasn’t increased development fees since 2006.” City Engineer Cara Geheren compared infrastructure standards among area cities. “In the late ‘90’s Victoria started requiring substantial sand base and a more robust street construction,” she said. “Streets are expensive in Victoria. There are generally the same soil conditions in Carver County. Victoria is essentially the same as Waconia in street costs and less than Chanhassen.” “Communities around us are building wider roads than we are,” said Cara. “Two reasons for narrower streets in Victoria -- less cost and to slow traffic.” She added, “Sewer and water is generally built according to industry standards. We do constantly review those standards.” *** In conclusion, Mr. Sweeney stated, “Turning down bad projects quickly is also a tool. People also appreciate that.” There are other economic development tools available for a city. Administrator Uram asked councilmembers, “What options do you want to consider? Are you interested in the Revolving Loan Program?”
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June 2010 |
