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HomeMy WebLinkAbout4. Economic DevelopmentVillage of Mount Prospect Mount Prospect Community Development Department MEMORANDUM TO: DAVID STRAHL, ACTING VILLAGE MANAGER FROM: DIRECTOR OF COMMUNITY DEVELOPMENT DATE: OCTOBER 7, 2015 SUBJECT: DISCUSSION ON ECONOMIC DEVELOPMENT The Village Board adopted the Village's Strategic Plan in 2014 to create a long term vision, to define a general Village mission and to provide direction for more detailed tactical planning and implementation, Key components of the Strategic Plan include six overall goals established by the Village Board, of which three deal directly with economic development throughout the Village. In January staff presented an overview of ongoing economic development programs and efforts undertaken by the Economic Development Commission and staff. At that time, the Village Board endorsed those efforts and requested that staff provide them with an update later in the year to ensure that those efforts remain aligned with the priorities set by the Village Board. I have attached an updated summary of economic activities that the Village employs to further investment in the community that reflects our efforts to date in 2015. These activities include business attraction, business retention and marketing efforts that are cornerstones of accepted economic development strategies utilized by communities nationwide. In addition to these activities, staff initiated two new programs to further our economic development efforts in 2015. The first program is the Dish'n Out television series that was undertaken by staff from the Television Services Division, Public Information Officer and Community Development Department. This program features 3 restaurants (one each from the south, north and downtown areas) in a 30 minute segment that runs on MPTV. Six shows will be taped featuring 18 local restaurants that are randomly drawn. We will evaluate the program after the first 6 shows to determine if more shows are warranted. The second is the branding of the Mount Prospect Entrepreneurs Initiative (MPEI) which was created to identify all of the unique services offered by the Village, Chamber of Commerce, Mount Prospect Library and Downtown Merchants Association. The MPEI programs are designed to connect people and existing business to resources in hopes to guide new and prospective business owners down the path of success. The MPEI logo was designed and unveiled, which will aid in the marketing of entrepreneurial services. Please forward this memorandum and attachments to the Village Board for their review and discussion at the October 13th Committee of the Whole meeting. William J. "Cooney Jr. Economic Development Activities Business Attraction 1. Trade Shows The Village has historically focused its' trade show efforts by attending local and national International Conference of Shopping Centers (ICSC) events. The ICSC is the largest trade association of the shopping center industry. The Village attends the National RECON show and the Dealmaking and Alliance Programs in Chicago. The Economic Development Commission (EDC) will investigate attending local manufacturing and tech shows throughout 2015 in their efforts to attract businesses to the Kensington Business Center and other industrial properties throughout the Village. (Strategic Action Plan (SAP) 4A, 5A, 5B and 6A) • 2015 Activity: Staff attended the ICSC National RECON show, ICSC Dealmaking and ICSC Alliance shows this year. In addition, we attended the Technology & Manufacturing Association of Illinois (TMA) Mayors for Manufacturing Summit, Chicago Industrial Properties Development Day Conference and NORBIC functions to further connectivity with the industrial brokerage community and local manufacturers. 2. Entrepreneur's Cafe The Village, in partnership with the Chamber of Commerce, Downtown Merchants Association, Mount Prospect Public Library and Illinois Small Business Development Center offers quarterly events that are focused on the nuts and bolts of starting a business in Mount Prospect. These efforts are focused on small businesses and have been well attended. (SAP 4A, 4C, 5A, 513 and 6A) • 2015 Activity: Worked with the Mount Prospect Chamber of Commerce, Mount Prospect Public Library, and the Mount Prospect Downtown Merchants Association to expand the Entrepreneur's Cafe to include programming beyond the typical business workshop; a quarterly Spotlight on Success film series, an E -newsletter specifically for entrepreneurs, and a Business Event Calendar. Four entrepreneur -focused films were shown, and workshops related to social media marketing and business insurance requirements were hosted. 3. Recruitment Efforts Staff has established a network of key contacts in the commercial/industrial brokerage community that we communicate with regularly on development opportunities. These relationships are critical as these professionals have a big impact on location decisions 1 throughout the region. Staff reinforces the Village's pro -development attitude and encourages them to steer clients towards Mount Prospect. Back in 2007-08, the Village hired a consultant primarily to recruit businesses in the downtown district. While the recruiting efforts did not bear fruit, the consultant did assist the Village on its' marketing efforts by re -designing the economic development page on our website and formulating marketing pieces to promote businesses. These efforts have been reassigned among Community Development and Village Manager's Office staff who will continue to manage these tasks. (SAP 4A, 4C, 5A and 66) • 2015 Activities: Worked with business owners, property owners and commercial brokers in the Kensington Business Center (KBC) to address vacancies and aesthetics within the park. In 2015, the vacancy rate in the KBC dropped to 14%. Welcomed Novomatic, Atlas Material Testing, Netrix and GoGo as new tenants in the KBC. CVS/Caremark, R & B Foods and NeuroRestorative completed significant expansions of their facilities. Encouraged new businesses to locate in the downtown through marketing and incentive programs such as the Facade Reimbursement Program. Tokens and Tankards, Trezero's Kitchen and Tap, Bar 145, Edible Arrangements, The Wildbird Shack all located in the downtown district. Business Retention 1. Business Visitation Program The EDC has conducted over 200 business visits throughout the community over the past 7 years. These visits have been very beneficial to the Village as they have provided a window into understanding key issues impacting businesses in town. The top issues raised by the business community were high property taxes, lack of restaurants in the area, lack of hotel options, ComEd service interruptions and maintenance of the infrastructure in the Village. The Village has worked hard to address all of these issues and has made great strides with the Randhurst Village redevelopment (and surrounding properties), interaction with ComEd and investment in the Village's infrastructure. The EDC's focus in 2015 will be setting meetings with shopping center owners to discuss issues impacting them. (SAP 4A and 46) • 2015 Activities: The EDC continued their retention efforts by focusing on the KBC and shopping center owners. 2. Entrepreneur's Cafe The Entrepreneur's Cafe also focuses on existing businesses by providing local mentoring opportunities to interested business owners. Cafe meetings topics such as business marketing, networking and budgeting serve to educate small business owners, with the goal of strengthening and growing their business. Entrepreneur's Cafe topics are chosen in part by the participants, allowing future programming to address the small business community's specific needs. (SAP 4C and 56) 2 • 2015 Activities: See above. Marketing of Village/Businesses 1. Web site updates The business tab on the Village's website provides interested parties with all information needed to locate and operate a business in the community. Staff updates the available retail, office and industrial properties on a monthly basis utilizing its' Costar subscription. Links to Village incentive programs, the Entrepreneur's Cafe, and Experience Mount Prospect are all easily accessible on the website. The Village is upgrading its' web site design this year which will provide greater flexibility in expanding/modifying the economic development portion of the site. (SAP 4C and 56) • 2015 Activities: Updated the Village's CD and E -Cafe webpages to simplify content and promote upcoming events and the Village partners, such as MPPL. Continuously updated the available properties listing on the Village Website to reflect current information in hopes of attracting prospective businesses. Currently reviewing options to expand efforts with new Village website design. 2. Experience Mount Prospect The Experience Mount Prospect site provides Mount Prospect businesses with free advertising opportunities that are sent to over 2,000 registered customers, via a monthly E -newsletter. Local businesses are also promoted directly through the Experience Mount Prospect website; business deals are posted on the main page and special events are posted on the Experience Mount Prospect calendar. Businesses are encouraged to submit for free listing in the Business Directory, which includes over 140 restaurants, retail and service businesses currently posted. The Experience Mount Prospect site continues to grow through greater business participation and addition of local subscribers. Continual promotion of the Experience Mount Prospect program and website will better connect businesses with local customers. (SAP 213, 4A, 4C, and 5B) • 2015 Activities: Staff continues to expand the EMP customer list and offer these services for free to all MP businesses. 3. Business Resource Guide This "how-to" guide is a document designed to assist prospective and new business owners understand the process of opening a business in the Village. Thorough in its contents, the guide provides contact information for local, county, and state business organizations. It also explains the various review processes within the village, such as building permits or business licenses. This document is available on the Village website. (SAP 16 and 4C) 3 2015 Activity: Redesigned and updated the Business Resource Guide to reflect current contact information. 4. Ribbon Cuttings The Village works in collaboration with the Mount Prospect Chamber of Commerce to organize ribbon cuttings, which celebrate and welcome new businesses to the community or to commemorate special events, such as a business anniversary. Businesses that have ribbon cuttings receive recognition in our quarterly Village Newsletter and additional exposure through the Chamber. (SAP 2B, 4A, and 56) • Attended over 15 ribbon cuttings celebrating new or expanding businesses throughout the community. S. Banner Program The Village promotes the Village's businesses and the Experience Mount Prospect program through a series of colorful banners displayed on light poles throughout downtown. These banners, which are rotated regularly, promote events such as the Block Party, Fall Fest, and the Tree Lighting. The banners encourage people to Shop, Dine and Enjoy Mount Prospect, while creating a sense of place unique to downtown. Our banners are updated on a regular basis, and in 2015, newly purchased Shop, Dine, and Enjoy banners will be displayed throughout downtown. (SAP 2B, 5A and 5B) • 2015 Activities: Ongoing program. 6. Eddie Award In 2014, the Village and CVS/Caremark received an Edie Award, which honors businesses that "invest, build and bring jobs, growth and prosperity to Illinois communities". This award, given by the Illinois Chamber of Commerce and Illinois Development Council, is highly competitive and reflects the best economic development projects completed each year throughout the state. (SAP 2C and 4A) Incentives 1. Class 6b Cook County Classification The Village has supported over 20 applications for the Class 6b tax incentive that is available to qualifying industrial businesses. The program reduces the assessment level for industrial properties from 25% to 10% for ten years, then 15% in year 11 and 20% in year 12 before returning to the full 25% assessment level thereafter. The 6b incentive can be extended an additional term if approved by the Village. The intent of the program is to level the property tax rate for qualifying businesses to those that exist in surrounding counties. (SAP 5A and 6A) 4 ■ 2015 Activity: Supported three applications for Class 6B property classifications to encourage the occupancy of the KBC. 2. Fagade Improvement and Interior Buildout Program The Village offers matching grants to qualifying retail/restaurant operations in the downtown district. The grant is up to $10,000 for retail establishments and $25,000 for restaurants to make improvements to the interior and exterior of their establishments. The program is funded through the downtown Tax Increment Financing fund. (SAP 5A, 6A, and 6B) • 2015 Activities: Encouraged new businesses to locate in the downtown through marketing and incentive programs such as the Facade Reimbursement Program. Three new restaurants; Tokens and Tankards, Trezero's Kitchen and Tap and Bar 145 were approved for facade grants and located in the downtown district. 3. Randhurst Village Redevelopment The Village entered into a Redevelopment Agreement with JP Morgan/Casto to redevelop the former Randurst Mall into Randhurst Village. The Village pledged $25 million towards the $150 million project to ensure that this key commercial property and the surrounding Rand Road commercial corridor continue to thrive into the future. All the funds that the Village committed to the project were "new" revenues that were above and beyond revenues that were generated by the property prior to the redevelopment. Fund sources included a Business District tax, shared state sales taxes, hotel taxes, entertainment taxes and food and beverage taxes. (SAP 5A and 6A) • 2015 Activities: Issued permits to several new restaurant tenants in Randhurst Village, reducing the center's vacancy rate to three percent (3%). New tenants included Smokey Bones, Truco Taqueria and Outback Steakhouse. 4. Sales Tax Sharing Agreements The Village has entered into two sales tax sharing agreements over the past few decades to attract (Costco) and relocate (NW Electric) certain businesses. The Village did adopt a policy that requires that any business requesting consideration must have annual sales over $75 million for the Village to consider such requests. (SAP 5A and 6A) 5. Tax Increment Financing (TIF) District The Village has utilized a TIF district as the primary economic development tool for its' downtown redevelopment efforts over the past few decades. The Village has utilized TIF funds for property acquisition, demolition, business relocation, site cleanup, infrastructure and streetscape improvements to attract private investment in the downtown district. The TIF district is scheduled to end in 2021. (SAP 5A, 6A and 66) 5 Process Improvement 1. Monday development team meetings Staff from all departments involved in the permitting/development review process meets at 8:30 AM on Mondays to review the status of major projects in the Village. In addition, we invite developers or business owners that are pursuing a project in town to attend these meetings to open a dialogue regarding any potential issues that might pertain to their particular project. These meetings have been well received by participants as they provide them with an opportunity to openly discuss issues prior to moving forward with expensive plans. These meetings also establish much better communication between key Village staff and developers early on in the process which benefits both sides as projects move through the development cycle. (SAP 1B) • 2015 Activities: Ongoing program. 2. Building Permit Pre -Submittal meetings The Building Division holds pre -submittal meetings with developers/residents that are undertaking larger projects that require building permits. These meetings are held at the convenience of the applicant and are intended to ensure that the initial permit submission is complete so that valuable time isn't wasted on incomplete submittals. (SAP 1B) 0 2015 Activities: Ongoing program. 3. TPI The Village has outsourced all building inspection and major plan review functions to TPI Building Code Consultants for the past 4 years. This move has enabled the Village to provide next day inspections (was up to 3 days depending upon the number of requested inspections) and 10 -day plan review turnarounds. (SAP 1B) nthar Fffnrtc 1. Annual Business Breakfast The EDC and Chamber host an annual Business Breakfast event that provides the business community with a current update on business activity in the Village. All licensed businesses are invited to the event. (SAP 4A, 4B, and 5B) • 2015 Activities: The Annual EDC Breakfast will be held on October 15, 2015. EDC business awards will be awarded for the first time at this year's event. 2. Downtown Merchant Association, Chamber of Commerce and Lion's Club events The Village works in conjunction with local business and service clubs to put on several popular events in the downtown district. Over the past 15 years, the number and frequency of these events have grown due to their successes. Current events include Irishfest, Downtown Block Party, Oktoberfest, Pub Crawls, Tree Lighting Ceremony, Saturday Night Car Shows and the Farmer's Market. These events are well attended and provide downtown businesses with a great opportunity to market their businesses. (SAP 26, 4A, 5A, 56 and 6B) • 2015 Activities: Ongoing program, 3. Friday Nights on the Green The Village sponsors the Friday Nights on the Green concert series throughout the summer. These free concerts draw hundreds of residents and provide downtown businesses with another opportunity to market their businesses. (SAP 2B, 4A, SA, 56 and 6B) • 2015 Activities: Ongoing program. 7