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275819 WHITE - CITY CLERK PINK - FINANCE � COUtICIl �5819 CANARY - DEPARTMENT � G I T Y O F S A I N T PA U L � . BLUE - MAYOR � FlI@ N O. solution Presented By Referred To Committee: Date Out of Committee By Date WHEREAS, A municipality may, pursuant to Minnesota Statutes, section 462.353, carry on comprehensive municipal planning activities for guiding the future development and improvement of the municipality; and Wt3EREAS, The Council of the City of Saint Paul may, pursuant to Minnesota Statutes, section 462.355, subdivision 3, adopt or amend a comprehensive plan or portion thereof after a recommendation by the Planning Commission; and WHEREAS, The Planning Commission has in substantial part recommended adoption of a plan for Economic Development Strategy as a part of the City comprehensive plan; and , WHEREAS, The following action by the Council of the City of Saint Paul is not an implicit adoption of a comprehensive plan of 1963 or other portions thereof recommended by the Planning Commission; now, therefore, be it RESOLVED, That the Council of the City of Saint Paul does hereby adopt the plan for Economic Development Strategy (a copy of which is attached hereto and marked Exhibit A) , subject to such review by the Metropolitan Council as may be required by law. COUNCILMEN Yeas Nays Requestgd by Department of: -�an�" Levine [n Favor Maddox �I AAa�Aahop s�,owaite� _ Against BY Tedesco W Ison OCT 16 19g� Form Appro d by City A rne Adopted by Counci� Date /y (� / g `T �d0 "rtified P by uncil Secreta Y B} ' �� ocr�o ��sa-- A r by Mayor: _ Approved by Mayor for Submission to Council By BY P��ts�E� 0 CT 2 � 1980 , �,a .. � � ; � : � ' � � ' � � � r� � y ' � . ..�� :. . , . . . . � � . � - � � ' , _ � � . . . � .. ( , � .. . .� . . . . . . /� ' � .. . . ,- - , . . . .. � . �. . ., ` .;�,..; . . . . . . . . ' . . \ .. . _ . . . . , ' . _ . . , . , . . � '. � . . . . . � . . . .. . . � � . . . ' . . _ . ' � ' .. . . . , ` , . . . .. . . . . . . ' . _ . ; . - � ! ' , . - . �. - . . . .. �_ . .. � . . � . � . . . , � � .. _. � " . . � . . � , . .. � . . . . I . , � . ! � . - . . ' . . . ' . . . . . . . .. � :. • . . - . . . . � . . . . . ' � . ' � . , . . . .. . ' . _ . .' �.9 _ October 9, 1980 . '; - � : � + ' �' . � � a _ . , � _; . � � ,. . ' _ tr : Mr. lsd �tarr . . , �`� Citiy Attorney ' , . � R�om�n47, .City Hall ° _ - � : • Dear 31r; , , . _ � The Ctty Council today,� after public hee�ari�g� v�otec'� to epprcr�e t�e �, _ i�cor�laic Developmeat Strategy as reco�or�nded Dy t�te P�.aaala8 Co�mis;��+tm ' - � , and th+e City DeveI.opment & Transporta�tion' Ccu�.fttee.' Will ycyu g��e�e! y � prepere t.he praper ordinanae or resolutior� �implae�et�tipg th3s activn�' � � ; ' VQY' t.T ti�'� � . ; ''� � , � Y �J► J►o t , . . ,`. , =� - , ' _ ' f. , ROSC.Mix . . C�ty Clerk . 3. •, ; _ ` _ -� � � . . � - �. . . . . .- . � : 1. . .�.� � � . . . . . . . . . . .. , . �; � ;,?: � ' � . .. �i��- . � � .. � . . . ,. '� . . . . : . � . . - �� • . - . . . . . - � � . , . � � ., . . . . . . f r:. ... . � . . � ,� . - � . . . � . � . � � . .. . . � � . . r � .. . .. . � . � ' . � . / .. . � . �. � . � • ' . �' � � � a �. �. .. .. � � . , � ' . . � ' , .. . . .. . , . . . i � � � � .. . , _. . .� � . _ ." .. . . . . . . � .... . . . . . . �:.: . � . . .. ' . . . . . . . . _ . :� . - , �. - � '��.-� . . .. . . . -�. . _ � - .. ; �. - . � � � . � ' � � . . �' , . , . .. , .. . � . ' . .. .,�.F. `' � . � . � .. . . . , .. . � � ... ' ' �� . . � / - � � �F '.} . . . _ . . . .i� . . � . . . . .. - � . . �� . . " . � � .. i .. � . .. . 1' 4. . . - . ' . � , . . . .. .. . . . . Y •i '. , , . . � • . . ,,. . . ,. � , . .'�s . .. .. . ' . . . . . . _. . , _ . .. � � . .. . . , . . . .. . .. . .. . . . � . .. . - - . � - . , � { ° . � . . - � � . .. . . . � _ . , � . . . . . . . . . . � e., �, � � , � , . � � .. . . . i , . ` . . . .- . � � � c �f . . . • . ' . . . .�, .,. . � � . ' '_ .." . � . � �'�� r ,. .. � :��. .,, ... .� _.. . . . . �:� . , ,.. —,� .. . l. � , .i;; .� ,,. . . . . . . . . .. . . .. ., / . � �.7 ,.x . . . . - � ` . . . . . . . . � •`� . . � � � .. � .i , ti�. . .. .. . , f� . . . . . . . . .. . . , .. . .. . ' ' . . .. .. � . - � � .� . � � .� . � . � . � . ._. . C'�. .. , , f � . _ ; • , . ` + � ��V�� ., j � r � , � _ , - ' �''. J , ' � _ :, , . ., � , , ' . .:,,' : ' 8ep!tembar 2�j,' �9� . . .. � } - ', ' � Pianning Staff % � ' ;� llth Floor, E�ty Hall An�ex - . Sti. Pe�ul, 1Kn. , , ,; 4 , . . . � Dear Sirs: � , . , . , , � The City Courieil xfll hold a public hearing on E)c�Eober 9th, 29$0 : to con�ider �approval of the Economic Developinent �trategy rts transmitted by the Rlanning Commissi�n a�d recommended gor �.pproval " by the City Development and 1'ra.nspe>rtat�azt Committee. iii11 you �"`' � gles�e tate the neceeaary'staps to provide aotif'ication to � int�rest.ed part�ae, it necessary. ' , '> . . , � Yery truly ycyar�� , , , , . � \ " , ; � � , ' :,Ro�te l�c �. , ' City Cisr�c . � . � : . � �} ' ' . . ' . . _ � . � . . ' . . . . .. J ,�. � � . •. , ..�� . . . ' . . . . �.� . . .. . � . . .. . . . `7". . � - • ' . . . . ' . � , . . . . . `a.;. � . . . . ,. ... . ' .. . � .. • • _ � . � _ �. . . � . � � � . . � ' , .. . . . ..: �( � . � . . , . � . ... . . . " 1�t�:. � / . . . .. . � � . .� . . . . . � .. � . � . � .... I .. . . . . . . . � �. . . . . . . \ ` . . � . . - ' . ' . . .. . . / . � � � — . . . .. . . � � . . . . ..1 )i ��. . �� ,- � � � � . ., . � � .� . . � .. - . . .. � .. ' ' .. � 1 . � 'f . � � . . . . � � � � ... � .. . . . . . . - .. �'I . . . �� . . � ' � � � .��' . . . . � . . . . . . • � .1 .. . � ... � � . � . -. - � . � ... , . . . � � . . . � . . �..i � � . ' , � � � � . �. \ . � . . � � . ' . . . . - �. d.� . . . . . . - . � � � � . . . . � �� '+ � ��'f '. . . ' . . . ' _ . . . ' . . . _ , ... . . . . . � . � �{�-� , . . . . . . . . � . . , ., i � �- � � � � - . . . � .. � . . . . � _ . . . � . . .. � � . �' . .. �. . , �.:. �-� . . . . . . .,r. , -...:.- .. . . . ��.��- . . . . . � . , ,. . .. �� .. . _ . . . �.,.� r.... - . . �.:� � ' �J�'� ;':,;'` f:' � U�E'i'1:l�. C%'�' a.'i:t�:: C;:'.t:'�_' C:U��C*_l:. ��. ,:. .' (::'.�;`-�, t Q. . ! ' - ;.� �.. � . � : ..! �'� '�.."� - '' j';; . Da� e : September 19, 1980 '`�,`�_�+,i%•' _ .. . , , � �- ,-� � :..� :�� 5 19 C, � �'di !:�i � � �~ w. � � �a� L i �+ � .. 1 /o , . . . . " � � . . .� �} : �C1ini PCIU1 Cii,r Gotan�li .� . � ,�� _ ' �� Q �;� = C tl i i t i7i t T i C y �� CITY DEVECOP�1ENT AND TRANSPORTATION . ' � � eti�irrncn ma�es i`t�e foZto��iing : � - � Leonard W. :Levi ne � .� , . - � . . - . report an C.F. .� l�-?i`Clll'f(iCtCf� - : � . • . � R�SOCIl'CtOitl - : , : • � Clihet' - - � �j�� e Economie Development Strategy - � �. : _ . The Commi�ttee recommends approval of the Econorrric � � . , Developmertt Strategy, and further recommends that a �date of hearing be established for the � ' - � . . Council to hear this� matter. • • . . � • - � . � � . . - _ . � � . , a - � . � � ' . . ��4' i::i7.L. SE��f;t�"ff: 'rf.O:7s` _ 5:11_ti1� E':�Lsi.,, :1E\�:►'��)'f:t $i;i,�_'_ _� . _ � ,. _..__ - ` ° _ ,-: . , _ . � • , ; Q , „ � � Y . . . . . . /�j . . , • � . � � . r �.��. � . . . � . .. . . .� �' , , .. � , . ! � } . . . . k. t'� . . . ` . . . ' ` ` . . ' . . .. ' . , I . . . . . . . . , � � .� . ' • � ' . ' �. . � � � � � �V�.�j,� �'. . . . . . ' � . ,- . . . . . : ' � � . . ' . L . ^' ' . ' � ,. ' . " , � � �. . ,' .� .. . . , . ` � . .i � � � /�� . � 1 , . . .. � , . . . . �. . . , . . . . .� . � 7 . ' . � ' . 't/ � . ' . . . . � .' . �. . .. . � . . ' � .. . . � � � . - � .. , ,'.Ik .. : � . . . � . . , , . . . , .. x . ' . � , �C. ��. 1�� . . � , � ' . • ��:= Counci3man Leos�ard Lev3na ' ' • � , . , Chtirman ' �, �, City 3?!n►elopa�nt �'Traaepos�tation C�amitta� . , `� , : . , , �, . , . . Dear Cauncilmaa I.svina: , ' , ' Tbe City Co�r+cii refe�csd to Che 'City 1�veZapnmeaC a�c2 Traa�►portat3�on . , � Comm�t�ee fox �sideratf�on, ar�d rew�ammext�ta�Cidtn a l�tter of tl� , Maipor tran�mfttiiag ths �lanuing P�mmission`xec�lndation �'or` an , � ; , Scon�o�ti�at Dl�ve�opetant. Stt�tegy e�e aty �aa�t�to� tfis City'B t 'Co�pseh�neive ,�1ain. . �, T _ � . , � ;� . V�ry' tr+�].p yro�r�. , �� : � r �u . . - . ?C � . I . , : , 1�; - , .;.� . �1l�� H�X . f , ! City' Cl�rk � ' �`° , _�:� - � � � f �� ' � , � �: A84edt _ �f , . .. �: - � y� . ,. . �z' . . . . . � � �. � � . ' . . . 4 .. . � � . . . � � ' . .. . . �. � . . �'::� r�, . . . . . � _ .. . . . . i � . ,. . ..—'.. � . . ` i*� � . , � . � . . , . . � � . * i� � . - �. . � . - - ... � - . �, � . � � .;�� : . . � . . . ' . � � � . -� . � . . . , . ' . ... .� , . . ,. . . . . . . . . ' . . . .. - . .-� .i: ' , r, . � . . . , , , . ' . - � � . . . ' � . ry Y . . . � . . . . . , �� y' � � . � . � . . .� _ . � . . � . . � ' . • . ` �t �*�'1 . . � . � . . ' � � - ' . . . � , � k,l ', � ..��, .. . . � , ' �. .. � ' � � h-� i r '� , t; ' .. . .. . . . .. . � . . . � � � , ��{ �? � . .. � . . . �. . . � .. ' � i ' i. . ! ::.� Y z� . . . . � � . � :+y�; � � - . � '. � . � ' . . ' , " � � ' .. . ,:�; ' ' . . . � � ' � - ' � , : - . � I,� • . � . • � �� `� . - . . . � � . .. � y�. � .. . ' - . • \ . ,, 1, . .. ' �* . , � - . , � . . . . . . . . . . � � _ . . , s� .. �?��s . ,� I� . � , ��T*�. CITY O F SAINT PAUL �i' + p y OFFICE OF TI�iE MAYOR �� + u�,i1 uin , � 111 111 0 • e �� 347 CITY HALL . SAINT PAUL, MINNESOTA 45102 GEORGE LATIMER (612) 298-4323 MAYUR August 14, 1980 Council President RoR Maddox _ and Members of the City Council - Seventh Floor City Hall St. Paul , Minnesota 55102 RE: Transmittal of the Economic Development Strategy to the City Gouncil Dear Council President Maddox and Members of the City Cauncil : The Planning Cormnission held a public hearing on the Economic Development Strategy on June 27, 1980, and certi�fied the Strategy on July 25, 1980. The Strategy is a proposed amendment to the City's Comprehensive P1an, and must be adopted by the City Council (subject to Metropolitan Council review) before it comes into legal effect. "Certification" by the Planning Comnissian represents its recommendation to the Mayor and the City Council that the Plan should be adopted. I am distributing copies of the Plan to you for your rev�ew, prior ta conducting a public hearing. The Strategy has undergone an extensive period of pub7ic review. It has been distributed �,; through the Early Notification System list, to City agencies and departments, to commercial organizations, and to a representative group of leading corporate exeeutives in the Metropolitan area. Mr. Bellus, in his letter to me, noted that the Strategy has received strong support and endorsement in this public review process. One substantive criticism was made at the Planning Commission's public hearing, concerning the relative priorities between corr�nercial , residential ,and industrial deveiopments, as expressed in the draft Strategy. The staff responded by writing a report on this issue, a copy of which I have attached, and revising the wording af Chapter 6 of the Strategy. This revision has met with approval Zn the subsequent review process, and is refiected in the copy of the Strategy I am forwarding to you. , I am very pleased by the levei of support and consensus that has been generated by the Strategy, and I expect that the Strategy will play an important rQle in guiding our future economic growth and stability. It is my pleasure to transmit the Economic Development Strategy to you. Please contact Mr. Be11us if you have any specific questions or would like a personal briefing. incerely, ` . Ge ge time Mayor , � � �� d�, Enc. �` � cc: James Bellus � - .��;s:., _ . . . . t � . . _ C�ty 4t s�lnt pau� . planning comr�i�sio� �esol��io� . _ �5��9 file num�e� -,�=-"�. date : � . - . .: :. - _ WkiEREAS, the Economi c Devel opment Strategy v��as. devel aped as a porti on of-the _ . Comprehensive Plan of the City of St. Paul ; and WHEREAS, a public hearing was held on June 27, 1980 at wnich the Planning Commission considered the recommendation to amend the Comprehensive Plan by adding to it the : Economic Development Strategy; and __ . � WHEREAS, prior tv said hearing, a notice of time and place and purpose of the -�earing -- ,. was published in the official newspaper of the municipality at least ten days prior to June 27, 1980 and was distributed to the Early lVot�fication Syst2m mailing list; and IJHEREAS, at said public hearing, the public, the Planning Qivision staff, and �Planning Commission members were given the opportunity ta compietely discuss and revTew - the Economic Development Strategy; and WHEREAS, following the public hearing, the Plarning Cor�nissior staff responded � to the hearing comments with a revision of tne Economic Oevelopment Strategy; and WHEREAS, prior to .the adoption :of the entire Comprehensive Plan, .which is required by the ��letropolitan Land Planning Act of T976, segrrents of the Plan ti•ri11 �be adopted as they are developed, and subsequently ccmbi.aed ir�to a single arrended and internally consistent Comprehensive Plan; NOW, THEREFORE, BE IT RESOLVED, that the Planning Corrnnission for the City of St. Paul hereby adopts as a segment of the Comprenensive Plan, tne Economic Development . Strategy, a copy of which is attached hereto and incorporated herein by reference; and BE IT FURTHER RESJLVED, that copies of this Plan be transmitted to the t4ayor and - the City Council of the City of St. Paul ; and BE IT FURTHER RESOLVED, that the Planning Commission recommends to the City Cauncil the adoption of the Economic Development Strategy, as revised, as a sesment of • the Comprehensive Plan for the City of St. Pau1 , subject to hletropolitan Council revi ew. . moved by "-- - . second�ed by . in favor . aga�nst—: , - _ : . �.. _ __ _ _ _ � : ._. - - - - : : . . _ .. . . �__.__ _�.--__ , _.__ _;�. w.�_ ..��..._- _ _ __ - �-�.� _ _ _ __ . . _. ...... _ ___ __ __ _ _ ______ _ _ • . ON THE ECONOi�1IC C_NELOPi�1ENT STRATEGY •, r_ AT TNE MEETING OF TH� PLA,,��!?;dG COP•1��IISSION, JU^JE_27, 1980 � ._ . �� During the public hearing on the Eccnomic Developr�ent Strategy (ECS} , oresentations were made by Amos Nlartin , Vice President of the St. Paul Chamber of Ca�merce, and Bob Rogge, a private citizen speaking on his o+,vn behalf. O�her questions referred to here are those raised by Planning Co�nmission members during the Car.-�mission meeting. This paper summarizes the revie�! corr�nents , responds to them, and suggests revisions to the draft text of ti�c EDS. 1 . A question was raised concerning the data, referenced in the EDS, c�hich s hows commercial land returning a larger per/acre tax base contribution to the city than industrial land. Table 1 (attached) illustrates this statement_ _ 2. Mr. Rogge, appearing on his own behalf, spoke in opposition to the EQS. In a wide-ranging set of comments on St. Pau1 , f�r. Rogge made t�ro specific comments on the EDS. Comment: ��hat is the purpose behind writing this ,plan, part�cu�arTy sinc�._ __ it does not replace any existing plans. There is no reason ta Hrrite this plan. RESPONSE: It is true that ure do have other planning documents tha� relate to economic developmeni, including project-specific plans (e.g. , Energy Park) capital spending plans (the annual Capital Allocation Policies) , and the 3-year CDBG Plan. However, the EDS is unique in that it is the anly planning document that summarizes and coordinates all of our activities relating to economic development. As an element of the city's Comprehensive Plan (�•rhich none of the other documents are) , the EDS is our official anc� ;:ni`ied staterent of economic goals, objectives and po7icies, and ��ril1 provide the general guidance to other more specific economic development planning. � . Commen�: The EDS simply provides a rationale for the iarge-scale deve�apment, by the city, of all the vacant lots in the neighbonc�ods and the neighborhoods are strongly opposed to that scale of development. RESPONSE: Given land shortages in t'r,e city, and the pr�sent rate of ecanomic growth in the return-to-the-city movem2nt, it is reallstic ta expect tha� the existing vacant lots in the neighborhoods a�ill increasingly come urtde r development pressure, both for commercial and residential purposes. It is not the intenticn of tne EDS to serve as a rationale Tc•r tnaz developrrent, but rather to serve as a guide to appropriate, efficient and �rell-designed development. The city is usually not in a position to control the fact of development (on privately owned land} , but it is in a position to cantrol the nature of that development to some extent. Through provisicns fcr sjte revi2w, through the draft Land Use Plan, u�hich calls for future corr�:erc�a� developm�nt to accur in a more clustered pattern of land use, ana tn rough other revie�•i powers, including the development guidelines discussed in the EDS, we attemot to ensure that the inevitable developments meet the needs of the city and the cora�unity residents, and are appropriate for the neignborhood (i� terms of density, scale, design and impact) . In most cases, we have found that the neighborhoods are � supportive of development proposals , recognizing th� need far ��ore and better housing, for more commercial services , and for a stronger tax base, as long as. these developments are compatible with the neighborhoods. _ . _ _ _ __ _ __ - _:..._..__._, _�_._ �. ._.___,.�.....,..�,_.,�.^........__,�.._ � � � _ ''�. _ �.� A quest�on from the Plannin Commiss ��, r a�S �� the terms "commercial " and�,9ind�stria �n conce, ned tne precise definition of � .. 1 , particularl,� s�nce the relative emphasis � between the t��o ti��as questioned by Mr. t�lartin (see Section 4). The difficulty , is that there is a considerable over7apping bettiveen tnese t,��o terms , in a functiona sense. Traditionally, we have thought of "industria7" as referrirg to raw materials processing (e.g. , steel mills) , manufacturing (e.g. , car assembly} and distributing, and "commercial " as retail stores and persona7 services. However, this distinction becomes increasingly blurred ti�rhen t��e consider such land uses as auto repair, high technology research and rr,an�facturing facilities, business services (e.g. , machine repairs) , an� electronics as�sembly. - If we relate these definitions to the city's Zoning Ordinance, �•�e note that there are some uses permitted under the �business zoning that have industrial characteristics, in terms of thei�r impact on a neigh�orhood (e.g. , auto service stati.ons, storage buildings , research labs , and manufacturers of "sma11 precisian goods"), a�hile there are uses permitted under the industrial zoning that are commercial in� their nature. For the purposes of the EQS, therefore, it �vould be nore usefuT to focus�.on. the performance characteristics of a proposed development or expansion, in terms of its impact on the neighbornood (e.g. , traffic generation, noise pollution} and on the city's economic and fiscal base (e.g. , land-intensity, labor-intensity, tax base increase), ratner than rocus on arbitrary definitiors of "industrial " or "commercial ". This view provides a useful perspective for examining the question of the relative priority bet�leen industrial and commercial deve7opmen�s,in the fo7lowing section. 4. Mr. Amos Martfn, Vice President of the St. Paul Cham�er o` Cor;merce, spoke on behalf of his organization, in favor of the EDS. He did, noG•rever, raise the following pQint. , - Comment: The EDS places too great an emphasis on res�d2ntial and commerciai developments , and rot enough on industrial developnents. This is contradictory to the stated objective of increasing the nunber af jabs in the city. The EDS ignores the fact that industrial firms are net creators of ti�r2aith, whiie commercial and service firms tend more to redistribute existing :,realth ti•�ith�n a community. RESPONSE: In the f;rst place, it is not completeIy accurate to say that commerciaT an service firms only reallocate existing ��ealth �vi�hin a community and, therefore, are not net producers of wealth. St. Paul is part of a large and complex regional economy, and many of our servi ce and cor�merci al ri rms dra:� tiveal th from the region into the city. Examples include financial institutions, retail facilities, and high technology service firms. It is also important to remember that the city'; prir�ary direct benefit from a firm is that firm's contribution to the city's tax base. The city aisQ benefits indirectly from that firm to the extent that it hires St. Pau1 residents and provides them with a good income, which in turn enables these residents to afford quaTity housing and purchase goods sold by St. Pau7 r.:erchants (who in turn a7so contribute to the property tax base) . But since �•ie. are in a truiy regional economy, it is just as likely that this employee lives in Maple:�rood and shops in Rosedale, while the St. Paul resident works in Bloomington and shops at Southdale. Therefore, the city's primary concern nust be tne contribution a firm makes to its tax base. _ _ _ M.__. � _ ___ __ �.. _ . �. . i a� S � � c� � ' Thre EDS� does gi ve a greater en�phas•i s co�co^�merci aT c��fer i ndustrial , for several �• reasons. First, as shown in Table 1 , corr�ercial firms zre more tax-rich than . industrial firms, due primarily to the fact that the ir.dustrial firms (especially heavy-industrial } tend to be more land-extensive, ��hile comTercial firms can be concentrated vertically, and thus use iand far more erriciently. It has also been noted that commercial firms, because of their ef�iciency in land usage, create more jobs per acre than do industrial firms. Historically, the growth sectors of St. Paul 's economy have [�een �n sucFt areas as electronics, financial services, computers , researcn, and other hign technology fields, wnich in many cases are classified as comrrercial rather than as industrial_ Finally, it should be observed again that ��rhat are traditionalTy terr�ed "industrial" firms tend to need larger acreage sites than the c?ty can provide. Vacant land that is suitable for industrial purpcses is an increasingly scarce cQmmodity . for this city, as is true of virtually all fully developed urban areas_ lJith a few exceptions, such as Red Rock Phase 2 and the Ene•rgy Park, St_ Paul does not have the available land to accom�nodate the large-scale Tand users that are traditionally defined as "industrial ". l�Jhat ti��2 do hav2 are smalT sites (averaging 22 acres) , which are well suited to sma�ll land-intensive developments. Much of this discussion over commercial vs. industrial focus lies in defining the terms "comJnercial" and "industrial " at least frem a fim ctiorta� point of view. As discussed in Section 3, these distinctions are sorr:e��naL blurred, particularly when related to the Zoning Ordinance, and �•�hen considering the relative impacts of commercial and industrial firms. Today, it is increasingly feasible for � modern "industrial " firms to be land-efficient, labor-intensive, and environmentajly acceptable to their neighbors, while there are some "cocr�ercial" Iand uses that do not adequately utilize land, have a lo4v labor-ir,t2rsity, an� arz not usually perceived as acceptable neighbors. . The staff suggests, therefore, that the EDS focus (i3Or° on the �e•rforrr;ance characteristics of proposed expansions or developments (:��i�h r�gar� to tneir impact on the city's fisca� and econonic base, and on tne im�ediate neignborhood}, rather tha� establisning priorities be�t•�een two arbitrary classificatior,s_ In this way, the important concepts and benefits (high e�:,olo�ment density, efficient lar,� use, 4:tracti�re d�signs , neighbc�hecd compGtibi'ity) are em�hasized_ - The staff suggests that S°ction 6 of the EDS (Strategy Policies - Industrfal} be rewritten to reflect the views expressed here, and to shTft the focus more onto performance standards that should be applied to ind�strial and large commercial developments, rather than onta the priority to be given be�,•reen the two categories. A copy of the proposed draft for Section 6 is attached. I � STATUS OF THIS REPORT (AUGUST 1980) This Economic Development Strategy will becane part of the City's Comprehensive Plan after public review, certif�cation by the Planning Canmission, and adoption by the City Council . The Strategy has been in a process of public review since January, 1980. It has been distributed through the Early Notification System list, as well as to various c�rcial organizations and private businesses. Presentations have been made to: District 1 (the Economic Development Committee), Operation '85, Northwestern National Bank, and American National Bank. the Planning Commission held a public hearing on the Strategy on June 27, 1980. Following this hearing, the staff responded to the comnents by offering a revision of the Strategy. . The Planning Carrnission certified this revised draft of the Strategy on July 25, 1980. The Strategy is now under review by the City Council . � � f .. . ',. . . . . . . � '. .. .. : .. . - � . `�.... . �v� 4 . . � . � . . . . . . 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PAUL, MINNESOTA 55102 � � ' D L? � D � � � � � R E The Economic Development Strategy (EDS} is a corr�rehen- PU POS sive statement of the .City's economic and fiscal needs � � and goals, and a set of policies and guidelines to assist the City in meeting these goals, throu� ensuring a strong econorr�y and a st�ble pattern of growth. � FUNCTIONS • The EDS will serve as the City's offi�ial statement of economic development poTicy in con3unction with applica- tions for federal , state and foundation aid; as part of ' the review process in the tJnified Capital Improvements Program and Budget Process (UCTPBP); as a guide to the economic development �ctivities of the City's elected � � officia1s and staff; and as a statement to the business � comnunity on the City's goals and direction. PREMISES 1.The �ity faces a nurr�er of economic and fiscal , pressures (including a loss of jobs and a declining tax base) that h�ghlight the need for a strong and active private sector econorqy in the City. � 2.The City is already engaged in a wide variety of � activities th�at directly or indirectly affect economic � development; given its scarce resources, it is important that these dfif�erent activities be well coordinated to function effectively. ' 3.It is important to clearly define and understand the City's ro1� in economic deYelopment, which is to serve as a facilitator and guide to the private sector, rather ' than as a replacement of it. GOAL ST. PAUL IS C�IITTED TO A STRONG, DIVERSIFIED AND EXPAND- ING LOCAL ECONOMY, TO ENSURE THE WELL-BEING OF ITS iCITIZENS, AND THE FISCAL STRENGTH OF THE CITY. OBJECTIVES 1.Increase the �ity's tax base, especially the non- � � residential tax base. 2.�ncrease the number of 3obs avai1able in the City. � 3.Maximize the opportunities and ir�rove the climate for business ventures. � 4.Re-establish identity of City's downtown as regional center of employment, shopping, investment, activities and residence. - � � DIVISION OF PLANNING • DEPAR't'MENT OF PLANNINC3 AND ECO�AIC O�VELOPMENT • CITY OF SAtNT PAUL CITY HALL ANNDC • 25 WEST FOURTH STREET,SAINT PAUL, MINNE90TA 551� • TELEPHONE:612•298�4151 ' � �TRATEGY APPROACH To identify those needs of.the private sector that the � City can directly or indirectly address, to facilitate private economic activity, within defined guidelines, � including: ' � Space (land and buildings); Investment capital ; ' � Sound and well�maintained public services and facilities; - Energy efficienc�; Skilled work force; �Productive business elimate;. � Strong consumer market; Technical assjstance on business skills to small businesses; and � �avorab1e city image. D�V�LOPMENT PRINCIPLES In working with and assisting'the business comnunity, the � • City will be guided by the following principles: 1.The City's primary responsibility is to its citizens; all development assistance efforts will be �udged as to � . their impact on the citizens well-being: 2.The City's ro1e in economic development shall be � limited to that of facil�itator and guide to the private business comnunity. 3.The City.shall minimize its own financial involvement � in private economic development activity, and will utilize its. limited fiscal resources efficiently and prudently. . � 4.Developrr�nt should emphasize the preservation, main- . 4 tenance, rehabilitation and reuse of existing sound faci1ities. � ,. 5.Development should contribute to maximum energy effi- � ciency. SUMMARY OF POLICY RECON9�fENDATIONS � NEIGHBORHOOD C�N�IERCIAL The City shall continue to relate its conmercial develop- AREAS AND MAJOR ment efforts with residential revitalization efforts, � RETAIL CENTERS inc1uding greater coordination between the Local Develop- ment Corporation (LDC) program and the Identified Treat- ment Area, (ITA) program. � The City shall continue to emphasize joint public-private revitalization programs which target City public improve- ments and City financial and techn9cal assistance to � comnercial areas that offer the greatest potential for revitalization, with first priority given to assisting in � , � � � - , i . the retention and�expansion of exis�ting ftrms. The City � should pursue pelicies and encourage developrnents that :� recognize the nw�ually supportive roles of the downtown, the neighborhood '�orm�ercial areas, and the retail centers. � DOWNTOWN � The City sha11 pursue a strategy of balanced ,growth, encouraging the retention and expansion of the downtown's strongest sectors (the ma�or of�ice and comnercial � _ tenants) and providing assistance, within the limits of the City's fiscal resources, to the emerging and weakest sectors, including housing and entertainn�nt. The City j sha11 contlnue to develop a strong public support system, to encourage and facilitate private lnvestments, includ- ing the .fringe parking and shuttle system, in�proved • � transit systems, pedestrian public improvements, and a � continuation of the sl�ywa�y system. INDUSTRIAL AND The City sh�li �continue �ts policies of. actively aiding � LARGE COMMERCIAL industrial and conmercial expansions and near developments, under more explicit gui�1ines that ensure the most effi- cient use of scarce conmercial/industrial land and of the � � city's limited resources. Tn determining the appropriate land use for a vacant or underutilized parcel of carmer- cial/industrial 1and, the city shall be guided primarily by considerations of the land efficiency and labor inten- � sity of the proposed development, and the extent to which the deve1opment is compatible with existing ad�acent land uses and unique parcel characteristics. � EMPLOYMENT 4PPORTUNITIES The Cit� shall continue its extensive programs of �ob- train�rrg and employment assistance, and should more direct1y 11nk them with our economlc development activi- t � t1es, offering our capabillties of producing a trained work force as an incentive to developers. The City shall renew its comnitment to Affirmative Action principles, � . and should ensure that our minority and low-incane resi- dents share in the City's econanic growth. j SMALL BUSINESS The City shall ensure the continued availability of ENTREPRENEURSHIP technical assistance on business skills to sma11 businesses, using private and public resources. The City sha11 also ensure the a.vai1ability of investment capital � through the continuation and expansion of various commer- cial loan programs. CITY IMAGE The City shall aggressive1y work for local, state and ` federal policies that enhance the relative advantages of St. Paul, and should pursue local means of making the ' City a more desirable and competitive environment. The City sha11 a1so seek to more thorou�ly capitalize on existing resources, to emphasize and enhance the City's quality of life. � � � � � GOVERNMEN7 OPERATIONS . The City should enhance its ro]e as a canpetent and �; effective partner in economic development, through _ p.ursuing a variety of policies, including streamlining � procedures and requirements, updating staff skills, and � impraving data collection and analysis capabilitfes. � - � � . � ' � , � , � � � � � _ � _ � � � � � � TABLE OF CONTENTS 1 . � 1 .0 INTR DIfC I I N ND P POSE � 1. REMISES , 2.0 GOAL AND BJEC S 4 � 3. S CH 3. NEEDS 0 PRI TE SECTOR ECONO Y 5 3. E E PMEN PRINCIPL.ES 8 � 4.0 STRATEGY POLICIES-- • NEIGHBORHOOD COMMERCIAL 1 AREAS, AND RETAIL CENTERS 4.1 DISCUSSION 1 4. 0 ICTES 2 � 5. S R TE POLICIES--DOWNTOWN � 5: DISCUSSION 8 S � 6.0 STRATEGY POLICIES--INDUSTRIAL AND LARGE COMMERCIAL 6. DIS USSTON 3 � 6.2 POLICIES 4 � 7.0 STRATEGY POLICIES-- EMPLOYMENT OPPORTUNITIES 7.1 DISCUSSTON 9 � 7.2 POLICTES 29 8.0 STRATEGY POLICIES-- 31 � SMALL BUSINESS ENTRE- PREP�EURSHIP AP�D CAPITAL 8.1 DISCUSSION 31 � • � � ' � � � 9. STRA EGY POLIC ES-- � CITY IMAGE . IS SSI N 3 � • S 33 . -- ' GOVERNMENT OPERATIONS T SS 34 . LICIES 4 � ' � _ � - � . � � � � � � � � � ii ' ' 1.0 INTRODUCTION � � ' 1.1 DEFINITION AND PURPOSE The Economic Development Strategy EDS is a comprehen- OF ECONOMIC DEVELOPMENT sive policy statement that: summarizes the major � STRATEGY economic and fiscal issues concerning St. Paul ; establishes the City's goals for employment opportuni- ties, fiscal health, and economic strength; and identifies the means by which the City can reach these , � goals. It is a systematic and comprehensive approach towards � integrating the various economic development activities of the City into one coherent and consistent program _ of activity. i • The EDS will function as: a) the �ity's official sta�ement :of economic. � development policy, in conjunction with all proposals for State and Federal grants relating to economic development; � b) a part of the review process in the Unified Capital Improvement Program and Budget Process (UCIPBP); ' c) a guide to the actions of the Mayor, the City Coun=. cil , the Department of Planning and Economic . Development, and the Port Authority, in working � with developers and in reviewing development proposals; � d) a guide in determining future work programs for the Department of Planning and Economic Development, �and the Port Authority; ! e) a statement to the private sector indicating the City's goals and direction, to aid their planning efforts and to enlist their support. � 1.2 PREMISES Establishing an EDS is a major and complex task, and one � that traditionally has not been viewed as a responsi- bility of city government. But there is a strong argu- ment to be made for the City pursuing a direct and participatory role in its private sector econoir�y. � This argument is summarized by the following three premises: ' , i , 1 . I r "b i " iti s faces a , St. Paul , l�ke other, olde , u lt c e , series of interrelated problems that can be summarized in one recurring theme: the growing gap between the � levels of resources needed for municipal services, reconstruction of public facilities, housing rehabili- tation, and economic development, and the levels of � • resources available to the City for these activities. These problems include: an older housing stock, 60� of which was constructed prior to 1940, and much of which needs rehabilitation; a loss of jobs, residents � and industrial/comnercial firms; a shift in the City's population towards the lower-income; a decline in � retail strength, both in absolute numbers and relative � . to the Metropolitan area; a need to rehabilitate and maintain extensive public facilities; a real-dollar decline in the City's taxable base; a decline in federal � aid (Comnunity Development Block Grants, and General Revenue Sharing), and a level of bonded indebtedness per capita substantially higher than the national average. The gap between St. Paul 's expanding needs and dimin- ! ishing resources can be reduced through the development and maintenance of a strong, expanding and diversified � pri vate sector econoir�y. Thi s econorrty provi des the non- residential tax base for the City, employment and entre- preneurship opportunities for the City's residents, and � the retail and service facilities needed by the City's residential corranunities. To the extent that it has a healthy private economy, the City can generate more tax revenue with which to provide services and engage in � rehabilitation and development efforts. The jobs generated in the econorr�y will provide incomes that can be recycled within the City to maintain and improve St. � Paul 's residential tax base and consumer market. The second premise is that the City has the opportunities to substantially affect the rate and direction of growth � in the private sector economy. Most of the routine decisions and actions taken by the City -- zoning decisions, public improvements,� promotion of the City, � allocation of federal aid, facilities construction or repair, land acquisitions, hiring and purchasing -- have an impact on the private sector economy. The � City is therefore engaged in economic development "planning" and implementation on a daily basis. i 1 2 � � � � What is essential i.s that the City more explicitly link all of these different actions, programs and � policies together, recognizing their separate and collective impacts on the economy. The City has_ demons�rated in the past, and currently,: its tremendous capaci�y for initiating, stimulating and , - facilitating economic growth. Examples include: the _ Capitol Centre project of the 1960's; the. Port Authority's success. in spurring industrial development and job � creation; a strong Local Development Corporation program' that has helped revitalize neighborhood commer- cial strips; the ongoing Town Square/7th Place project; � and rehabili�tation programs that have `aided much of �, . the City's housing. �� The third premise is that the City's most appropriate role, as a partner with the private sector in economic development, is as a facilitator of development, rather than as a developer. Government has the opportunity to I facilitate private development by creating conditions and environment in which the private sector can operate efficiently, effectively and responsively. Examples � of this role include: assisting a private developer in land assemb�y; assisting in obtaining financing (including Minnesota Housing Finance Agency monies, tax-free revenue bonding, and Port Authority bonding); � expediting citizen review procedures; expediting City review and permitting procedures; marketing development sites, etc. � � i � 1 � 3 2.0 GOAL AND OBJECTIVES � . � St. Paul 's needs and capabilities suggest a broad i range of activities in which the City could be engaged, to promote and facilitate the economic development activities of the City's private sector � econorr�y. Al1 of these activities should be guided by one over-riding goal : ST. PAUL IS COMMITTED TO A STRONG, DIVERSIFIED AND [ EXPANDING LOCAL ECONOMY, TO ENSURE THE WELL-BEING OF ITS CITIZENS, AND THE FISCAL STRENGTH OF THE CITY. � To realize this goal , the City will work towards attaining the following objectives: � a) The City will slow the real-dollar decline in its tax base (measured as Estimated Market Value) , and reach a real-dollar annual growth rate of at least � 2%, by 1990; the City will emphasize increases in the non-residential tax base, to relieve property tax pressure on residential property. � b) The City will reverse its recent decline in employ- ment relative to the metropolitan area's employment, and seek to maintain a 25� share of the total metro- � politan area employment. � c) The City will maximize entrepreneurship opportunities � within the City, ensuring a healthy operating en- vironment for small business operations. d) The City will once again establish the downtown's identity as a regional center of economic activity, and residential , educational , cultural and enter- tainment facilities. � I i 1 1, 4 , � 3.0 STRATEGY APPROACH i i3.1 PRIVATE SECTOR NEEDS As stated earlier, this Strategy is based on the realization that the public and private sectors are � necessarily interconnected, and that the achievement of _ a strong and stable econorr�y is a function of the actions of both sectors. We have also stated that the most appro priate function for the City government, in this partner- � • ship, is to facilitate and guide the development activ- ities of the private sector as much as is feasib?e and prudent, rather than attempting to replace it. By � recognizing that economic development will and always should be primarily a function of the private sector, the City approaches the Economic Development Strategy � � from the perspective of identifying those needs of the private sector that the City can directly address. These needs include. � a) Space: : One of the major difficulties faced by older "built" cities is that they are short of land suitable and available for economic develop- � ment. Industrial firms need medium and large size parcels of land for expansion or new development. Some existing firms find their facilities are hemmed in by adjacent pro- , perties, and need assistance in land assembly and clearance. New and small firms, in their first years of struggle, need low-cost � � "incubator" space within which to establish themselves and their market, before growing. This shortage of space has been a major factor � behind the out-migration of firms to the suburbs. Yet land is an issue over which the City has considerable authority. Some of the land in the City is owned publicly. Other land can be acquired publicly. The City guides the usage of land through its planning and zoning powers. Finally, the City can � guide the efficiency of land usage ( in the sense of labor or investment density), and the aesthetic and environmental aspects of � land usage, through a variety of incentives and controls. b) Finance: Capital is the life-blood of the economy. � Firms need venture capital to establish themselves initially, and later to expand. Yet the lack of sufficient capital , whether � it is small business loans for rehabilitation, or large financial packages for major devel- opments, is often a major constraint on economic development and vitality. The City, � � 5 � . � though limited in its own fiscal resources, � can provide assistance to the private sector in acquiring capital , reducing the costs of � development, or inducing investment by the private financial market. � c) Public The private sector econorr�y relies on sound � Services and well-maintained public facilities and and services, including roads, sewers, and Improve- utilities, as well as police and fire � ments: protection. These are traditional functions _ for a city government and the manner in which they are performed and targeted can have a � . direct impact on the economy. d) Energy: With growing concerns over the future costs and availability of energy, the relative � energy efficiency of the concentrated city over the sprawling suburbs will give St. Paul a substantial advantage in attracting busi- � nesses and residents. The City's energy efficiency lies in its concentration of activities that permits lower energy use per capita (e.g. , multiple-unit dwellings) , ,. shorter distances to travel between home and . work or between businesses, opportunities for shared uses of energy and energy byproducts � (e.g. , cogeneration) , and the availability of mass transportation that reduces per-capita fuel consumption and energy costs. St. Paul � can do much to promote its energy efficiency advantages, and to improve its energy efficiency, including: - working with the MTC to expand and improve its mass transportation facilities; - continuing to emphasize pedestrian travel � in its downtown redevelopment and comner- cial redevelopment plans; � - emphasizing multi-unit housing construc- _ tion; � emphasizing shared energy sources and production for concentrated development (e.g. , industrial parks) ; � � 6 l � I . � - providing centralized heating for the downtown (e.g. , District Heating) ; � - promoti,ng clustered neighborhood corr�nerci al devel opment; � - establishing energy efficiency standards in industrial and commercial development; - urging energy conservation technologies � in housing rehabilitation and construction; • - establishing parking an.d transportation � policies that encourage car-pooling, bus riding and fringe parking. � e) Work A major ingredient in the vitality of an Force: economic system is the availability and quality of an area's work force. Businesses � place a very high priority on this factor when making decisions on expansion, or location of new facilities. The City is involved in a variety of training and man- � , power programs and facilities, and can significantly aid the private sector by coordinating manpower programs with the � � specific employment and skills needs of businesses. f) Business The private and public sectors are closely � Climate: linked by a network of regulations, controls � and requirements, that protect the public interest from the negative impacts of � economic activities. In some cases, however, these controls lead to a stifling of economic expansion, innovation and productivity, and � the inconsistent application of controls can create an atmosphere of uncertainty within the private sector. The City can streamline procedures, modify regulations and controls, � and enforce these regulations and controls with greater consistency, to place fewer inhibitions on economic activities, � without jeopardizing the welfare of the City's residents. � g) Market: The private sector needs the presence of a concentrated and affluent consumer popula- tion. Much of the corrnnercial out-migration has occurred as businesses move to the / suburbs in pursuit of the out-migrating consumer population. The City can help induce a return to urban living through its � � � . i policies of housing rehabilitation, � new housing construction incentives, low- interest mortgage programs, revival of arts � and culture, revitalization of the downtown, and promotion of its energy efficiency. - h) Techni- While small businesses provide the majority ' cal of jobs, tax base, and economic strength for Assis- the City, they have a relatively high failure tance: rate. The City can ensure their access to � valuable technical assitance in gaining managerial and business skills, and can � assist businessment within a comr�rcial area � . to develop centralized marketing, promotion and design/development control methods. i) Image: Every city develops an image, and this can � become a factor in the decisions of residents to resettle in the city, and on businesses to locate in, or expand in, the city. This � image is a function both of reality and of perception. To some extent, our image of ourselves will be enhanced as a consequence ' of our economic development activities. In addition, the City can work with the private . sector in promoting St. Paul , capitalizing on our existing resources, to help instill the � image, in residents and in businesses, of St. Paul as a gracious and dynamic urban center of activity, prosperity, stability, � growth and creativity. The philosophy defined here should not be construed as � meaning that the City will prop up firms that are unable to succeed on their merits. Rather, it is meant to acknowledge the complexity of the environment in which private firms must operate, the many ways in which public � actions inevitably affect the private sector, and the possibilities for public-private cooperation to ensure a healthy econorr�y. � 3.2 DEVELOPMENT s a partner with the private sector in economic � PRINCIPLES development, the City will be guided by the following principles: � � 8 � � , i . � a) The City's primary responsibility is to its citizens. Al1 development projects proposed for public assistance, and all tools that the � City could use to aid the private sector, will be judged ultimately as to their impact on the ' well-being of the City's residents, and the general quality of life in the City. b) The City's role in economic development is that of � facilitating and guiding the activities of the private sector, and providing various incentives for reinvestment in the City. It does not seek to � � replace the private-sector by using public funds where private funds could be used, or by engaging in activities in which the private sector is already successfully engaged or could be engaged. � c) The City recognizes the severe limits of its fiscal resources, and will use them selectively and � efficiently. The City will continue its policy of minimizing, as far as possible, its direct financial involvement in private development projects, and � will seek a private:public leverage ratio in accordance with current Capital Allocation Policies. The City will always seek to employ funding sources and techniques that impose the least cost, and the � greatest returns, to the City. Priorities for funding sources should be: I 1. federal, state and private foundation aid (non-matching); , 2. City-issued revenue-supported bonds; 3. federal and state matching grants; I4. special assessments; 5. City property-tax revenue (G.O. Bonds and � public spending). Priorities for funding techniques should be: � 1. revolving loans; 2. City subordinated loans; � 3. tax-increment bonds; � 4. direct grants and assistance. I9 � � ' , d) The City is corr�nitted to urban conservation -- � development activity will emphasize the preservation, - maintenance, rehabilitation and reuse of existing � resources and facilities, where ever feasible. The City affirms its major commitment to maintaining effective and efficient public facilities and - services. ' e) The City is comnitted to energy efficiency -- development efforts will contribute to maximum � efficiency in energy usage, and the City will aggressively pursue innovative energy-conserving - technolagies and methods. � � ' � � 1 1 1 l 1 � 1 ,o 1 I � 4.0 STRATEGY POLICIES -- NEIGHBORHOOD COMMERCIAL AREAS AND RETAIL CENTERS 1 � , 4.1 DISCUSSION St. Paul s neighborhood commercial areas, and retail centers, play a major role in the City's economy. They � represent approximately 31� of the City's total employ- ment base (including 55% of the City's retail employ- ment), and 58� of the City's total retail sales. While these comnercial areas only represent 3% of the City's 1 - taxable land (by size), they contribute 62% (in 1978) of the total taxable market value of comrnercial property in St. Paul . � Over 100 separate commercial areas have been defined within the City, and they represent a great diversity � � in size, retail composition, market strength and area, and problems. Some have experienced substantial decline, paralleling the decline in adjacent residential area. Some have grown in size and strength. Some cater almost ' exclusively to a local neighborhood market, while others attract a broader market through specialty shops. � This diversity directs us to consider two sets of questions. First, what is the existing and potential market strength for any one comrnercial area? Is the retail mix within the area appropriate for its market � and neighborhood? Is it adequately meeting the market demands generated within the neighborhood? Second, what form should any public assistance to these � co�miercial areas take? The tendency has been to focus on providing physical improvements, but this approach fails to acknowledge that physical deterioration of a , commercial area is really a manifestation of more fundamental economic problems, including the possible decline of the adjacent residential neighborhood. L , The recorr�nendations we establish here are oriented towards achieving four primary objectives: 1) re- vitilizing neighborhood commercial areas so that they � will reinforce the stability and revitalization of adjoining residential neighborhoods; 2) increasing maintenance and support of existing neighborhood � comnercial establishments; 3) continuing to provide assistance to new cor�nercial developments and expansion, where appropriate; and 4) encouraging a more clustered pattern of land use in community and neighborhood � centers. � , 11 � � . 1 4.2 P LICIES NE -- ST. P UL SHALL BASE ITS NEIGHBORHOOD COMMER- - 1 CIAL DEVELOPMENT EFFORTS ON A RECOGNITION OF THE INTERDEPENDENCE BETWEEN NEIGHBORHOOD I COMMERCIAL AREAS AND THE ADJACENT RESIDENTIAL COMMUNITIES. a) Neighborhood corr�nercial development t assistance should be focused on those commercial areas adjacent to or within � residential areas which are stable, or are in the process of revitalization, � recognizing the interplay between the . goods, services and jobs provided by � the commercial area and the customers provided by the neighborhood. One approach would be to more explicitly link � our housing rehabilitation programs (i.e. , the Identified Treatment Area and Neighborhood Housing Services programs) � with our comnercial revitalization programs (i .e. , Local Development Corporations, the Neighborhood Comnercial Improvement Program, and the Urban Development Action � Grant program. ) � b) Neighborhood comrnercial revitalization � plans should be developed in cooperation with the respective neighborhoods, and business associations. Local Development ' Corporations (LDC) should continue to seek residential representatives for corporate membership from adjacent re- sidential communities. The LDC's, and � other business associations, should continue to develop strong working relationships with their respective � District Councils and other community organizations. c) Neighborhood commercial revitalization , efforts should emphasize developing or maintaining a mix of services and goods oriented towards meeting the needs of the � residential community. ' ' 12 � � � 1 d Th Cit shall encoura e commercial ) e Y 9 areas to develop in more clustered land- � use patterns, with new and rehabilitated � residential units interspersed with the commercial facilities in order to improve the market base and to�� create ` - a 24-hour neighborhood character for commercial areas. This can be accom- plished partly through: pursuing the � upgrading of residential units within comnercial buildings by allowing the use of commercial business loans for renova- � ' ting those units; pursuing the develop- ment of mixed commercial/residential development on vacant or underutilized � land within commercial areas; and by identifying vacant or underutilized si tes wi thi n corr�nerci al areas that should be rezoned and developed for � medium to high density housing. TWO -- ST. PAUL SHALL DEVELOP A CLEAR UNDERSTANDING � OF THE RESPECTIVE ROLES PLAYED BY THE NEIGH- BORHOOD COMMERCIAL AREAS, THE MAJOR RETAIL CENTERS, AND THE DOWNTOWN, AND SHOULD EN- COURAGE THE COMPLEMENTARY DEVELOPMENT OF � � THESE SECTORS, AND SHOULD STRONGLY DIS- COURAGE PROPOSED DEVELOPMENTS IN ONE SECTOR THAT WOULD BE IN DIRECT COMPETITION WITH ' ANOTHER SECTOR. � a) The City shall work with the neighborhood ' and downtown business communities, and with neighborhood residents and District Councils, to develop a general under- standing of the complementary and mutual- � ly supportive roles each sector plays in St. Paul , and to identify steps that could be taken to eliminate negative � perceptions of conflict between these sectors. � � , � 13 � . 1 b) The City shall encourage neighborhood � corrrtriercial developments that are oriented towards meeting the needs of � the neighborhoods, rather than a broader or city-wide market, and should discour- age neighborhood commercial developments - that would conflict with the role of the � downtown as the major office and services sector of the City, and as the site for� major retail facilities. ' THREE -- ST. PAUL SHALL CONTINUE TO TARGET ITS AID � FOR NEIGHBORHOOD COMMERCIAL REVITALIZATION � . TO THE MOST APPROPRIATE AREAS. a) Aid (in the form of financial assistance, � public improvements, and technical assis- tance) should continue to be targeted to those commercial areas in which the need for aid is demonstrated by the inability � of the private market to generate its own revitalization, in which there is a clear potential for success and market � strength, and in which there is an evi- dent commitment by the local merchants towards their own revitalization, in- � cluding investing their own capital , � and organizing themselves into an effective local business organization. FOUR -- ST. PAUL SHALL CONTINUE TO EMPHASIZE ITS ' JOINT PUBLIC-PRIVATE COMPREHENSIVE REVITAL- IZATION PROGRAM. ' a) This program hinges on the use of the Local Development Corporation, or other neighborhood business associations , to � assume responsibility for planning and directing the overall revitalization program and for carrying out program ' activities. The City shall continue to assist local commercial areas in organi- zing themselves into Local Development � Corporations. � 1 14 � � 1 . � ,. _ � ,b) - The City shall continue to assist neighborhood commercial revitalization � - through the provision of public im- provements, under the Neighborhood Gon,- mercial Area Improvement Program. Unaer � . these guidelines of this program, thes� _ public improvements are jointly fundecl, with the City paying no more than 50� � of general public improvements, and no more than 25q of public parking improve- ments, and the effected business proper- � - ties assessed for the remainder. c) The City shall also continue to assist commercial firms in the rehabilitation of � their properties, through the successful Commercial Revitalization program, anc�- should ensure, through design and build- � ing standards, that connnercial areas are attractive and aesthetically integrated, both in rehabilitation and new construc- � tion. FIVE -- ST. PAUL SHALL CONTINUE TO GIVE PRIORITY TO ASSISTING THE RETENTION AND EXPANSION OF � EXISTING SMALL COM�ERCIAL FIRMS WITHIN THE CITY. a) The City shall emphasize, through its � informal and formal ties to the business comnunity, the City's commitment to the � continued strength and viability of its neighborhood commercial firms. , b) The City shall give first priority, � through its various commercial assis- tance programs, to ensuring the continued strength and expansion of those existing � commercial firms that have demonstrated their own comnitment to success, through the maintenance of their buildings and reinvestment in their own enterprises. ' ' , � 15 � � � c) The City, with the assistance of the � business community, shall identify and evaluate institutional constraints , within both the private and public sectors which can inhibit small business retention and expansion. The main ob- � • jective would be to identify areas of "red tape" that could be streamlined. d) , The City shall continue pursuing and � developing ,a wide range of public and private financial assistance � tools, to ensure the availability of � . ' venture capital for neighborhood comnercial firms. e) The City shall ensure that the business � cort�munities are aware of the full range of technical assistance and resources available to them from private sources � (including SCORE, MEDA, and CDC's ' Business Resource Center). To the extent that these resources do not meet specific � needs, the City should provide technical assistance, primarily through the Local . Development Corporations, to individual merchants and merchants as a group, to � strengthen their economic viability. SIX -- ST. PAUL SHALL CONTINUE TO ENCOURAGE NEW COMMER- � CIAL DEVELOPMENTS IN NEIGHBORHOOD COMMERCIAL AREAS, AND SHOULD ESTABLISH SPECIFIC ASSISTANCE CRITERIA TO DECIDE WHICH DEVELOPMENT EFFORTS TO � ASSIST. a) The City shall identify key sites : throughout the City where new commercial � development is feasible, and develop preliminary plans for their reuse. b) The City's elected officials should ` continue playing a lead role in promoting and marketing developrr�nt opportunities , in St. Paul . , , ' 16 ' � � ' � c) The City shall develop a checklist of criteria in evaluating the desirability � of assisting new and expanding neighbor- hood comnercial developments. These . criteria should include a leverage ratio in accordance with current Capital A1.lo- 1 - cation Policies. In addition, the net present value of taxes generated over the` life of a development should exceed , - the level of public development assis- tance expenditures and fiscal support costs. � • d) Preference should be extended to proposed comnercial developments or expansions that will provide an increased range of � goods, services and employment opportuni- ties to the residents in the adjacent neighborhood. � � � � � � � � ' , ' � 17 5.0 STRATEGY POLICIES -- DOWNTOWN � � � 5.1 DISCUSSION St. Faul 's downtown has faced� and continues to face, a i series of interrelated problems that have inhibited its economic growth, including: the post-War II trends of _ � investors, consumers and citizens migrating to the suburbs, the relatively higher costs of land in the down town; difficulties in land assembly; market competition - from suburban shopping malls; and the perceptions by � many people that downtown is less attractive, safe and convenient. These problems have only been overcome through aggressive private leadership and public inter- � vention in the downtown development process, including the very successful Capitol Centre project of the 1960's ' � and the current Town Square/7th Place project. However, . the City does not have the fiscal capacity to continue � ' previous levels of public assistance. At the same time, several trends are developing that � indicate renewed strength and opportunities in St. Paul 's downtown developments. These include: shifts in Federal and Metro urban policies that recognize the need to rein- , vest in our cities; a renewed awareness of the relatively greater energy efficiencies of our urban and downtown living, shopping and employment; and the availability of new and innovative financial assistance tools. Perhaps � most important, St. Paul has reached a level of growth, a "critical mass", beyond which most types of further �development will be generated primarily from within the � private sector, with minimal public assistance. This momentum of growth is a function of the strong commitment expressed in St. Paul by the private sector, and their � growing awareness of the fiscal limits to the City's capacity for assisting development. A strategy for the downtown must begin with an under- * standing of the downtown's current strength and weak- � nesses. The strongest sectors, those in which develop- ment is active and needs little if any public assistance, � include the commercial and financial offices and ser- vices. Am emerging strength, and one that probably still requires some level of assistance, includes � ' retail , middle and upper income rental housing and hotel/convention facilities. What now appears to be ' the weakest sectors, and may continue to require some level'of public assistance, include owner occupied , housing, low-income rental housin , and cinemas and related entertainment facilities �including live theaters). ' � 18 � � � ' , A second element of this downtown strategy is a recogni- tion of the fact that the City can make a major contri- � bution towards investor confidence in the downtown through its corr�nitment to providing an effective and integrated public support system in the downtown, including the fringe parking and shuttle system, the � - skyway system, pedestrian public improvements, short- term parking and improved traffic circulation. � A third element is the need for a coordinated and centralized downtown management function, by the private sector, to enable the downtown to duplicate some of the � ' advantages enjoyed by suburban shopping malls, including comnon hours, and coordinated advertising and promotional campaigns. � Finally, the downtown strategy should be based on four key development policies, as stated in the Downtown Development Plan: , 1. Public and private development efforts should create and reinforce a multi-functional role for the down- town. ' 2. Public development efforts and support should en- courage major downtown activities to remain � � centralized rather than spread out or located away from the downtown core. � 3. Public and private development actions should create and reinforce a pedestrian-oriented theme for the downtown. ' 4. The downtown development strategy should be based on balancing major new development efforts with measures to conserve and build upon what is sound. � 5.2 POLICIES SEVEN -- ST. PAUL SHALL FOLLOW A STRATEGY OF BALANCED ' GROWTH IN THE DOWNTOWN, MAINTAINING ITS STRONGEST SECTORS, REINFORCING THE GROWTH OF ITS EMERGING SECTORS, AND ESTABLISHING INVESTOR CONFIDENCE IN THE WEAKEST SECTORS. 1 a) The downtown must maintain its identity as a regional comrnercial and office cen- ' ter, and a corporate headquarters. The close working relationship between the City and the downtown community must be � continued and nurtured, to maintain their presence and aid their future expansions within the downtown. � ,9 � ' � b) The City shall use its public and , private influence to discourage development of additional major suburban � retail centers that would compete with downtown shopping and activities. - c) The City shall exert its maximum � public and private influence to maintain the downtown as a government office and services center. Federal , state, � regional and county governments should be encouraged to locate their office and ' service functions within the downtown. . While government offices and services ' involve some loss in property tax base for the City, this loss must be weighed against the substantial gain in employ- � � ment and regional identity, that these offices and services provide. As a first priority, these government offices ' and services should utilize existing private corr�nercial office space. d) The City shall maintain the downtown area � as a regional medical center. The City should work with the Metropolitan Council � and the Metropolitan Health Board to � ensure that no downtown area hospital is allowed to migrate to a suburban location and, secondly, that potential hospital � closing and bed reduction policies do not � diminish the downtown's role as a region- al medical center. e) The City shall actively encourage, and � offer assistance to, the development of the emerging sectors of the downtown, � including: a third majQr lst class hotel , a third major retail store, and additional rental and owner occupied housing units. ' 1 ' 1 20 � � � � � f) The City shall pravide greater levels of assistance as needed, to ensure the � development of the downtown's planned but weakest sectors, especially in- cluding the establishment of the downtowri once again as a center for entertainment, ' � � performing arts and culture. g) The City has available a variety of fornis � of assistance, including the provision of new or improved public facilities and amenities, and public financing � through revenue bonds, Port Authority , . bonds, or tax increment bonds. h) The City shall be aware of the growing ' need for retaij and service facilities that meet the needs of the expanding downtown residential population. , EIGHT -- ST. PAUL SHALL CONTINUE AND EXPAND PRESENT EFFORTS AT DEVELOPING A STRONG PUBLIC SUPPORT SYSTEM IN THE DOWNT04JN, ENHANCING THE DESIR- , ABILITY OF THE DOWNTOWN AS A SITE FOR PRIVATE INVESTMENT AND THE IDENTITY OF THE DOWNTOWN AS A REGIONAL CENTER OF ACTIVITY. ta) The City shall continue the development of its planned fringe parking and , shuttle system, the expansion of its skyway system, and the development of short-term parking system. � b) The City shall ensure that the downtown presents an attractive environment for people, particularly pedestrians, � through such policies as providing public pedestrian-oriented improvements . at street level , improving traffic cir- culation through and around the downtown, ' and working with developers to ensure the aesthetic quality and pedestrian con- venience of new and rehabilitated / structures. f NINE -- ST. PAUL'S DOWNTOWN DEVELOPMENT EFFORTS SHALL BE ' DIRECTED INTO THOSE GEOGRAPHIC AREAS WHERE THE CITY HAS THE MAXIMUM OPPORTUNITY TO INDUCE PRIVATE DEVELOPMENT, AND WHERE ITS INVESTMENTS WILL HAVE THE GREATEST RETURNS. � � 21 � . � a) Downtown development efforts shall � focus, in general , on the following four priority areas, in order: � 1. 7th Place , 2. Lowertown - 3. Arts & Science Center � � 4. Civic Center b) If the proposed Downtown People Mover � (DPM) is approved and constructed, the City shall concentrate its economic ' development efforts, over the first � . three years of the DPM's operation, in the three block wide area which follows the DPM route from the St. Paul Hotel Station on the west to the Broadway � Station on the east. TEN -- ST. PAUL SHALL CONTINUE TO COORDINATE ITS DOWNTOWN � EFFORTS CLOSELY WITH THE DOWNTOWN COMMUNITY AND PRIVATE SECTOR. a) The City shall support and encourage an , expanded coordinating role for the Downtown Community Development Council � as the primary citizen review body for � downtown planning and development issues. b) The City shall continue to rely on � Operation '85 as the primary private organization responsible for project planning and development. � � c) The City shall encourage the private business community to assume a greater role in coordinating the operational , � management and promotional needs of the downtown. The corrrrnnunity shall play a lead role in creating a single downtown , management function to coordinate mar- keting efforts, establish uniform operating hours and procedures similar to the centralized mangement of suburban � shopping malls, and to establish a financial mechanism to fund shared support services, i .e. , short-term , parking, promotional activities. � 22 � , 6.0 STRATEGY POLICIES - INDUSTRIAL AND LARGE COMMERCIAL � ' . ' , conomic eve opment ac ivities in . au occur in'� five geographic areas: the neighborhood commercial areas � and strips, the major retail centers (e.g. , Phalen Center) , the downtown, industrial parks , and other industrial and large cornmercial sites. This section discusses this last � type of area. St. Paul has a strong industrial and commercial economic base, defining "industrial " as including raw materials � processing, manufacturing, and distribution, and "corraner- cial" as including services, financial and retail facili- ties. The City has experienced strong growth in such � � areas as financial services, high-technology research and light manufacturing (especially computers and electronics) , chemical engineering, printing, and agricultural products. ' Several important trends, however, will affect our future decisions on industrial and commercial developments. First, St. Paul 's economic role is shifting, from that of � a center for heavy manufacturing, to that of a center for corr�nerce, finance, services, education, information, and high technology. A second trend is that St. Paul has ' very little land available for commercial or industrial expansion or development, and is especially short of the larger acreage sites, over ten acres, that expanding ' industrial firms need. This is a major cause of the shift in our economic role, and in the substantial out- migration of corrmercial and industrial firms from St. Paul to the suburban metropolitan area, since 1960. ' Partly because we have little vacant land left, the City is experiencing considerable pressures to develop this ' land for a variety of purposes: residential , open space and parks, commercial and industrial . Adding to this pressure is the fact that most developable sites are close to other types of land uses. As we continue to ' fill in our vacant or under-utilized land, in response to pressures for development and in accordance with our objectives of increasing the City's tax base and employ- ' ment base, conflicts between these adjacent land uses must be avoided or resolved. � Despite its land limitations, St. Paul offers major locational advantages over suburban areas: access to excellent transportation systems, a highly skilled local work force, proximity to a concentrated market of ' individual consumers and other firms, and the technologi- cal sophistication of local firms and schools. � ' 23 � + . � f 1 Finally, city residents have traditionally considered ' industrial developments less desirable neighbors than comnercial developments; however, the distinction between � industrial and commercial is becoming increasingly blurred today. For example, an auto repair facility, considered a "comnercial" development, may generate � ' considerable air or noise pollution, does not contribute substantially to the emp1oyment base, and is often consi- dered an unsightly development by the comnunity. On that same parcel of land, an electronics component manufactur- � ing facility might be built, which would not generate the same extent of pollution, would employ more people and � contribute more in property taxes, and would likely be a � • more aesthetically pleasing development, even though it is �abe1ed an "industrial development". Given these above considerations , the City's strategy ' will be to shift its focus from establishing priorities between "industrial" and "cornrnercial " classifications, and towards establishing guidelines on the desirable ' performance characteristics of any proposed expansion or deve1opment. By performance characteristics, we mean measures of the impact this expansion or development will � have on the City, along two dimensions. First, we will , consider the impact this project will have on the City's fisca1 and economic base; the number of new jobs created i and old jobs retained, the additional tax base, and the � extent to which the project complements the existing economy of the area. Second, we will consider the impact of this project on the immediate community: the level of ' air and noise pollution, the extra traffic generated, the aesthetic des�gn, the general compatibility of the project with the surrounding area. � By focusing on these performance characteristics, rather than simp1y establishing a priority of one classification of development over the other, we are able to emphasize � the important aspects of development to the City: new jobs, additional tax base, and compatible land uses. More specifically, the City's development efforts will ' then focus on: firms that can provide the greatest feasible density of land-use and employment, firms that are the most compatible with the adjacent existing land � uses, firms that can benefit the most from the City's inherent competitive advantages, and firms that have historically been growth industries for the area. � 1 24 � � � � . � . us on erformance characteristics, As�de from our foc p there will still be a continuing need to identify � specific areas , Red Rock for example, as being the most appropriate for heavy manufacturing purposes. The City's Land Use Plan makes geographically-specific recomnenda- tions on the appropriate locations for light and heavy t ' industry. r 6.2 P LICIES E EVEN--ST. PAUL SHALL C NTINUE 0 R ID SSIS ANCE TOWARDS INDUSTRIAL AND COMMERCIAL DEVELOPMENT, WITHIN A SET OF GUIDELINES DESIGNED TO ENSURE THE MOST EFFICIENT USE OF THE CITY'S AVAILABLE LANO ' • AND DEVELOPMENT RESOURCES. a) Since commercial and industrial entrepreneurship and ' expansion in the �ity have historically come from local business people and firms, the �ity's first priority shall be to meet the expansion needs of � local firms, second priority to assist local entre- preneurs in establishing new firms, and third priority to attract out-of-area and out-of-state � firms to the city. b) Within these priorities, special attention should be . given to those firms that could especially benefit , from the City's relative competitive advantages over other locations,and firms in industries that have historically prospered in the area, based on our ' understanding of the local economy. c) Land parcels within existing and future industrial ' parks should be reserved exclusively for what are generally defined as heavy industrial purposes, with a priority given to those industrial developments that maximize land-efficiency and labor-intensity. � For vacant or reusable commercial/industrial parcels elsewhere, the City will give the highest priority to those developments that offer the most efficient , usage of land, the highest labor density, and are the most compatible with existing adjacent land uses and parcel characteristics (e.g. , availability of rail access makes a site particularly suitable for a ' manufacturing plant). � � � � 25 , . � � ; TWELVE--ST. PAUL SHALL CONTINUE TO PURSUE POLICIES DESIGNED TO AID LOCAL FIRMS EXPERIENCIN'G DIFFI- � CULTIES IN EXPANDING. a) The City sh�ll ensure that local firms are aware of • and have access to the full range of private techni- � cal assistance resources" in the area, including the Service Corps of Retired Executives, the Metropolitan Economic Development Association, and the Business � . Resources Center. To the extent that these resources _ are insufficient, the City should continue and expand its provision of technical assistance to local firms, � • through the Port Authority and Economic Development Division, coordinating these efforts with those of the private sector. b) The City shall continue to provide assistance to , local firms in their expansion efforts, includting assistance in finding new sites within the City. The , City should also consider, on a case-by-case basis, the feasibility of assisting local firms in acquiring adjacent land for expansion purposes. c) The City sha11 continue its policies of providing � , financial assistance to local firms, through Port Authority revenue bonding or through LDC loans. , THIRTEEN--ST. PAUL SHALL DEVELOP A SET OF GUIDELINES WITH ' WHICH TO EVALUATE ALL PROPOSED DEVELOPMENT AND EXPANSION PROJECTS REQUIRING SOME FORM OF , PUBLIC ASSISTANCE OR APPROVAL. a) It is important that the City utilizes its develop- � ment assistance resources prudently and efficiently, investing them in projects that will bring the greatest return (in jobs and tax base) to the �ity. � b) These guidelines should include criteria on employ- ment density, maximum site coverage, and leverage , ratio. c) The City shall analyze the fisca1 impact of a pro- posed pro�ect, to ensure that the additional taxes � generated by the project will exceed the required level of public financial assistance and fiscal support; that is, the City should get more out of a � proposed project than it will cost the City. i 26 � , ' . � d d) The developer of a proposed pro�ect should be offere the opportunity of utilizing the extensive private � and public manpower training and job-placement resources within the City, to ensure that his employee and skills needs are met. At the same time, the firm ' should be strongly encouraged to hire some percentage of its new employees from the minority and low-income population of St. Paul . ! e) Given the shortage of cormnercial/industrial land within the City, comnercial/industrial developments should . be strongly encouraged and aided in utilizing inno- � vative design and engineering concepts that increase the efficiency and intensity of land usage (e.g. , vertical versus horizontal expansion of industrial ' production facilities), and that emphasize or capitalize on energy efficiency (e.g. , cogeneration of electrical power and heat). Proposed developments should also be strongly encouraged to minimize the � environmental and aesthetic impacts resulting from the developments, including provisions for buffering between residential and industrial land uses, and ' provisions for adequate parking and safe transporta- tion access. ' �f� The City recognizes that these objectives cannot be viewed as rigid mandatory numbers, but should be seen rather as guidelines to be given full and serious consideration when evaluating the desirability of ' providing assistance to proposed industrial develop- -ments or expansions. Under specific circumstances, variations from these objectives may be appropriate, ' such as a proposed project with low employment den- sity that is expected to grow rapidly to a higher density in the near future. t g� The Port Authority should continue its present prac- tices of incorporating guidelines such as referenced above into their industrial parcel leases, through ' covenants. FOURTEEN--ST. PAUL SHALL INCREASE THE SUPPLY OF LAND ' AVAILABLE FOR COMMERCIAL/INDUSTRIAL EXPANSION AND DEVELOPMENT, FOCUSING ATTENTION ON SPECIFIC PARCEL SIZES AND TYPES REQUIRED. ' a) The City, through the Port Authority, shall continue its policy of acquiring land for industrial (espe- cially heavy industrial ) purposes, where that land is � not better suited for other purposes. Examples include vacant or under-utilized railroad lands, or other parcels that are sufficiently removed from resi- ' 27 r � dential or commercial land uses so as to not adversely � affect them. b) The �ity sha11 consider, on a case-by-case basis, the ' feasibility of assisting local firms in their expan- sion efforts by assisting them in acquiring and assembl- ing properties adjacent to their existing facilities, � to the extent that this does not conflict with other planning considerations. c) The City shall take special note of the need for large , sites (e.g. , over ten acres) for heavy ind�strial purposes, in determining the appropriate reuse of � - such large parcels. d) The �ity shall periodically inventory all vacant and under-utilized commercial/industrial land, in coopera- � tion with the Port Authority. � � e) As part of our periodic review of the Zoning Ordinance, � • the �ity shall consider the feasibility of rezoning residential land that would be more suitable for commercial or industrial purposes. ' FIFTEEN--ST. PAUL SHALL PURSUE INSTITUTIONAL POLICIES AND CHANGES DESIGNED TO IMPROVE ITS ROLE AS A FACILI- ' TATOR OF COMMERCIAL AND INDUSTRIAL EXPANSION AND � DEVELOPMENT. a) The City shall continue and strengthen its close links � to its business community, through informal lines of comnunication, through the continued strong comnitment , by the City's political leadership to the ity's economic future and through a strengthened Ombudsman's � function, as it is now informally carried out by the Department of Planning and Economic Development. b) The C.ity shall broaden its own understanding and ' knowledge about the City's economy, through expanded data gathering and analysis, including conducting an � annual survey, in coordination with the Port Authority, of local commercial and industrial firms concerning their expansion or migration plans, and their projected manpower and land needs. � c) The City shall actively work to further eliminate unreasonab1e constraints and "red tape" to industrial � and commercial developments, including consistent and accelerated review and approval procedures, targeting the extension of urban services to potentially usable � vacant land, targeting public improvements to expand the supply of sites suitable for development, and rezoning land currently not zoned for industrial uses but that would be more appropriate for industrial � uses than for residential or commercial uses. � 28 ' � 7.0 STRATEGY PQLICIES - EMPLOYMENT OPPORTUNIT�ES , . � ma'or 'ustification for the City esta is ing an 7.1 DISCUSSION he � � Economic Development Strategy is that the City has a � responsibiljty to ensure the �ell-being of its citizens. One of the paramount concerns of our citizens is the range of employment and training opportunities available to them and conversely, a prosperous economy is ultimately ' � a function of a well-employed and prosperous citizenry. It is essential , therefore, that the City establish full employment and training opportunities as major concerns � of its economic development efforts. - St. Paul has a relatively low unemployment rate of ' approximately 5� (1979) and high standard of living by national (though not by Metropolitan) standards. Never- theless, it is �mportant to recognize that we do have some measure of unemployment and underemployment, that , the median family income in St. Paul is approximately 80� of the median family income in the Metropolitan area, and that a disproportionate share of unemployment and low- , income lies among the City's minority population. � 7.2 POLICIES SIXTEEN-ST. PAUL SHALL CONTINUE AND E PAND ITS INV LVE- MENT WITH JOB TRAINING AND JOB SEEKING PROGRAMS, AND SHOULD MORE CLOSELY INTEGRATE THESE ACTIVITIES � WITH THE CITY'S ECONOMIC DEVELOPMENT ASSISTANCE ' EFFORTS. a) The City shall identify those local firms and ' entrepreneurs with development or expansion plans and should approach them to determine their future training and work force needs. ' The Port Authority and the Economic Develop- ment staff should work closely with Manpower Training in this area, using such sources of information as the annual survey of local � firms, to identify prospective clients of City's training resources. ' b) The City shall continue to provide technical assistance and encouragement to independent private-sector efforts at skills training, ' and job-finding, such as the CETA-funded Fair- break Learning Center. The City should work with the private sector to help bring about the efficient and effective integration of � � public and private efforts, relating to train- ing, employment, and entrepreneur assistance. � ' 29 � . ' c) Given the long lead time involved in most ' development projects, the City shall consciously approach its training resources as a valuable � economic development incentive, offering custom-training, through Manpower Planning, , to prospective firms, as well as jointly ' ' funded training programs, and shared use of , training facilities and instructors. SEVENTEEN-ST. PAUL SHALL CONTINUE AND STRENGTHEN ITS � COMMITMENT TO AFFIRMATIVE ACTION PRINCIPLES, AND � . TO THE PROVISTON OF EMPLOYMENT AND ECONOMIC OPPOR- TUNITIES TO MINORITIES AND OTHER LOW-INCOME ' • INDIVTDUALS. a) The City shall continue and strengthen its commitment to Affirmative Action policies. to � ensure that those groups of individuals who have suffered and now suffer discrimination will be given full rights to employment oppor- ' tunities within the City. b) Using existing federal guidelines, the City shall establish definitions for "economically t disadvantaged" individuals and for "small or minority business and comnunity entrepre- neurs" that would define individuals and � groups who have suffered and now suffer discrimination, including minorities and other low-income individuals. � c) The commitment by a proposed development project to hire a percentage of its new ' � emp1oyees from the City's minorities or low- income population, including CETA employees � and graduates of the City's Manpower Planning job-training programs, should be viewed as an � additional positive factor in evaluating that ' project's desirability and suitability for public assistance. The City shall also make � a special effort to provide assistance or encouragement to proposed projects or expan- sions by minority entrepreneurs. _ ' d) The City shall continue its present set aside policy of purchasing 10� of its goods and services from minority-owned small businesses. � 30 � , , 8.0 STRATEGY POLICIES - SMALL BUSINESS ENTREPR�NEURSH�P ANp CAP�TAL ' . , 8.1 DISCUSSI N Smal usinesses are the backbone of t e City's and ' nation's) economy. They provide the majority of the jobs , goods and services, growth in jobs, and tax revenues. However, they also suffer a relatively higher failure ' rate than do larger companies. While these failures �often occur because of reasons inherent in the firm's product, two difficulties faced by many small firms sub- stantially contribute to this failure rate: lack of ibusiness ski1ls, and unavailability of venture capital. • Small-business owners, while skilled in the particular ' goods or services they provide, often have limited under- standing of such business skills as inventory control , accounting procedures, tax deductions and work management. ' They also often find it difficult to acquire the outside capital they need to establish, continue or expand their operations, partly due to: a tight capital market at this time, high interest rates, a reluctance by some financial ' institutions to invest in small businessmen in what are perceived to be higher-risk areas when lower=risk invest- ments are available elsewhere, a lack of adequate � collateral , and the perception that these businessmen are hjgher rjsks because of their lack of business skills. � 8.2 POLICI S N-S . SH H C C CLIMATE FOR SMALL BUSINESSES AND ENTREPRENEURS THROUGH THE AVAILABILITY OF TECHNICAL ASSISTANCE � TO THE BUSINESS COMMUNITY. a) The City shall ensure that small businesses ' and entrepreneurs are aware of and have access to the full range of existing private technical assistance resources, including the Service Corps of Retired Executives, the ' Metropolitan Economic Development Association, and the Business Resources Center. In coordination with these private resources, ' the City should continue its own activities in providing technical assistance through the Local Development Corporations and other ' business associations. ' ' � ' 31 , . ' I ' � NINETEEN-ST. PAUL SHALL HELP TO ENSURE THE AVAILABILITY OF CAPITAL FOR SMALL BUSINESSES, ENTREPRENEURS, AND LARGE CAPITAL PROJECTS, THROUGH INCENTIVES TO , THE PRIVATE FINANCIAL MARKET, AND THROUGH THE USE OF CITY AND FEDERAL RESOURCES AND LOAN PROGRAMS. ` a) The City shall continue and expand its use of ' the Local Development Corporation program, and other federal and state loan programs. � b) The City shall strongly encourage the local . financial community to more adequately invest its funds in local businesses, including ' • minority-owned businesses. c) The City shall investigate other public and ' private financial tools that could be used for providing low-interest long-term loans to local small businesses, including revenue- bond revolving-loan programs. ' i � � ! . 1 I 1 1 I � I ! 32 ' � ' 9.0 STRATEGY POLICIES - CITY IMAGE ' . ' �.1 DISCUSSION �e�Nle an businesses form images of a city, and t is image can do much to influence decisions on where to move, , where to invest, and where to develop. We have too often heard that St. Paul is an unexciting and stagnant city, even though our present development efforts belie this ' perception. It lies within our capability to greatly " change this image to reflect reality. � 9. POLICIES W N Y- S . P L SH LL DOPT AN AGGRESS S R SELF-PROMOTION AND LOBBYING, TO EMPHASIZE AND . IMPROVE ITS COMPETITIVE POSITION AS A REGIONAL ' CENTER�. a) The City, through its elected officials and , representatives, shall continue to strive to improve the City's relatjve competitive advan- tages by influencing the development of favorable Federal , State and Metropolitan � Council policies and programs relating to urban revitalization and development. ' b) The City shall work closely with local news media to help develop a more complete and favorable understanding of St. Paul 's ' � activities,resources and advantages. , c) The City shall actively work with the downtown business corrmunity in making the downtown a ' more desirable retail entertainment and pedes- . trian environment, and in promoting the down- town throuyh special events, includiny provid- ' ing assistance in organizing a coordinated downtown management function. ' TWENTYONE-THE CITY SHALL CAPITALIZE ON ITS UNIQUE RESOURCES TO EMPHASIZE AND ENHANCE THE QUALITY OF LIFE IN THE CITY. ' a) The City should enlist the support of various local cultural , recreational , sports and similar types of groups, to more vigorously ' promote their activities, to investigate ways of expanding these and similar activities, to organize special events such as arts or music ' festivals, and to update well-known special events to make them more attractive (e.g. , the Winter Carnival ). � � ' 33 10.0 STRATEGY POLICIES - GOVERNMENT OP�RATIONS ' . ' , �10. DISCUSSION Muc of the City s success in promoting an facilitating , economic development rests on the efficiency, speed, , ' effectiveness and consistency of the City's governmental operations. By streamlining various procedures, updating staff skills, and improving data collection and analysis . capabilities, the City can function as a competent partner, , with the private sector, in economic development acti- vities. 10.2 OLICIES - . L L S U S, ' � PROCEDURES AND POLICIES, TO DETERMINE WAYS IN ' WHICH THE GOVERNMENT CAN RESPOND MORE QUICKLY AND EFFICIENTLY TO THE NEEDS OF THE BUSINESS COMMUNITY. a) The City shall continue and expand its ' Ombudsman function, as it is now informally conducted by the Department of Planning and Economic Development. � b) The City shall examine its various permit procedures, and should consider establishing a one-stop permitting office. ' c) The City, especially through its elected offi- � cia1s, shall continue to work closely with , the business community, informally and for- mally, to anticipate difficulties and road- blocks in development activities, and to ' , ensure the rapid resolution of these problems. TWENTYTHREE-ST. PAUL SHALL CONTINUE TO EXPAND THE CAPA- BILITIES AND SKILLS OF ITS STAFF. , a) Through a variety of training programs, including encouraging the use of local educa- � ' tional opportunities, the City shall upgrade the skills and knowledge of City staff in such areas as urban economics, investment � analysis and finance, and the use of various financial tools. ' ' � 34 , , ' ' _ , T�IENTYFOUR-ST. PAUL SN/�LL CONTINUE TO EXPAND ITS DATA COLLECTION AND ANALYSIS CAPABILITIES. ' a) `The City sha:ll conduct, on a regular basis, a series of surveys and studies to determine the economic conditions in the City, including ' ` working with thE Port Authority and the Chamber of Commerce on an annual survey of local commerciaT and industrial firms, to , determine their expansion or migration plans, and their projected land and work force needs. ' b) The City shall expand and improve its ongoing in-house data collection and analysis efforts, to provide accurate and timely information on such economic issues as growth and migration , patterns, and market areas. c) A primary focus of the City' s analysis shall ' be long-range forecasts of future needs of assistance to private developers and future development opportunities. ' TWENTYFIVE-ST. PAUL SHALL CONTINUALLY MONITOR ITS VARIOUS PLANNING A►JQ PROJECT EFFORTS, TO ASSESS THEIR . I�1PACT ON ECONOMIC DEVELOPMENT GOALS AND THE ' BUSINESS COMMUNITY. a) The Economic Development Strategy will be � adopted by the City as part of its Comprehen- sive Plan, and will be reviewed and updated periodically. ' , b) The City shall review other planning and project efforts and proposals, and determine the conformance of these with the Economic ' Development Strategy. ' ' ' ' � 35 CREDITS ' . ' ST. PAUL PLANNING CO ISSI N Liz nderson osep evy ' Clark Armstead **David McDonell � James Bryan *Jane Nelson ' . Carolyn Cochrane *Martha Norton Thomas FitzGibbon *Joseph Pangal Sam Grais John Schmidt 'Rev. Glen Hanggi Gayle Summers ' Sister Alberta Huber Janabelle Taylor *David Hyduke Adolf Tobler Nelsene Karns *Robert Van Hoef ' David Lanegran **Chairman, Economic Development Committee • *Member, Economic Development Committee ' ECON MIC DEVELOPMENT ayor George Latimer � STRATEGY TASK FORCE Councilman David Hozza Gary Stout, Director, DPED Gene Kraut, Port Authority , James Bellus , AICP, Planning Administrator Maureen McAvey, Economic Devt. Administrator Doug Ford, Renewal Division Administrator ' Bill Patton, Community Devt. Administrator Dick Thorpe, Manpower Planning DMINISTRATION AND James J. Be us, ICP, Planning ministrator ' POLICY DIRECTION RESEARCH AND PLANNING Don Keysser, P anner-in-Charge , Jim Zdon, Planner , Jennifer Abeln, Intern , , ' ' ' ,