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Economic Development Strategy Discussion; Beekman/Elverum Planning & Economic Development MEMORANDUM TO: Mayor and City Councilmembers Mike Mornson, City Manager FROM: Kersten Elverum, Planning and Economic Development Director Meg Beekman, Community Development Coordinator DATE: March 14, 2017 SUBJECT: Economic Development Strategy Discussion Background Throughout the summer of 2016, the City of Hopkins gathered business leaders, residents, Planning Commissioners, and Council members to convene over several meetings and discuss economic development strategies for downtown Hopkins. The results of that work were summarized in the Mainstreet – Keeping It Real 2016 Final Report (Attached). One of the goals of the process was to get feedback from the community on many of the projects and priorities that have been in discussion over time and identify which rose to the surface as areas we should be focusing on. Several goals and action steps were proposed in the report and staff has spent several months putting together a package of strategies that will begin to put into motion the recommendations that came out of the work group and the subsequent goals identified in the Report. These strategies also represent areas of focus that staff agree would support the Council’s vision for downtown Hopkins. Proposed Strategies Preliminary Feasibility Study - ArtSpace Goal: Attract the right mix of businesses Goal: Create an anchor development on the west end of Mainstreet Hopkins has a history of supporting the arts as a part of its economic development strategies. Recently, the City has seen a growing interest from artists for live/work space, gallery space, and shared co-op space. In addition, the Artery project has elevated the role of the arts in the community. Deb Zeller recently opened a gallery and studio space on Mainstreet, and has noted the high number of calls she has received from artists looking to rent space from her. As part of discussions between staff and the City Council, staff has been focusing on how to support and attract the creative class with opportunities to live and work in Hopkins. Art Space is a development group that develops and operates spaces for artists all over the country. As part of their process, they provide services to communities that will help determine the feasibility of these types of projects. Art Space has provided a proposal outlining their process and Lucas Koski from Art Space will be at the work session to answer questions and explain their work. Staff recommends moving forward with a Preliminary Feasibility Study to determine the feasibility of creating live/work, multi-use, or other arts facility developments in the City. The cost of the study is $25,000. Friendly (Store) Fronts – Musicant Group Goal: Encourage art pop-ups and interactive art and music Goal: Host an open streets event involving businesses Goal: Offer micro grants to businesses Staff asked the Musicant Group to provide a proposal to modify their neighborhood Friendly Fronts program to a commercial setting and to implement the program in downtown Hopkins. The program would provide consulting services for up to 20 businesses in Hopkins to implement place making using the Friendly Fronts toolkit. The goals of the program would be to strengthen the commercial and social vibrancy of downtown Hopkins through dynamic business-led storefront activations and merchandising, and to build visibility and brand awareness for downtown Hopkins as the “friendliest downtown”. The program would offer micro grants to businesses to improve their storefronts with the goals of the program in mind, and culminate in an open streets event to showcase the improvements. The program could also offer opportunities to test out placemaking strategies that may increase the vibrancy of properties on the west end of Mainstreet, as well as around businesses off Mainstreet. The cost of the program would be approximately $45,000; $30,000 for a fee to the Musicant Group to implement to program, $10,000 for micro grants, and $5,000 to put on the open streets event. Staff is applying for a $30,000 grant from Hennepin County to support the program. Façade Improvement Program Goal: Matching Financial Incentive Program In 2015 the City received $100,000 from the McKnight Foundation via Hennepin County to pursue a Façade Improvement Program. Staff developed a program that would provide matching grants to businesses for façade improvements. After a request for proposals was issued to the business community, staff was overwhelmed with the interest in the program. Four buildings were selected to participate and improvements took place over the course of the next year. The program has been successful, with low administrative costs, and significant private investment spurred. Staff is recommending that the City fund this program for another round with $100,000, allowing an additional 4-5 properties to receive funds. Design Consulting Services Goal: Provide design consulting services Staff is in the process of exploring a scope, budget, and process for establishing a design consultation incentive program. More information will be provided to the Council once a proposal is developed in the near future. Ongoing Strategies Neighborhood Development Council Through a grant from Hennepin County the City has engaged NDC to assist existing businesses on Mainstreet with business development services. The program is just kicking off, but NDC is actively working with several businesses already on marketing and website development, legal services, accessing financing for capital investments, and operational improvement strategies. This program will run for the next 18 months and ultimately be available to any business on stst Mainstreet and from 1 Street North to 1 Street South. Open to Business Open to Business is an ongoing program that is available to anyone who lives in Hopkins, owns a business in Hopkins, or wants to open a business in Hopkins. In 2016 Open to Business consultants met with 27 clients who either had an existing business in Hopkins or were exploring start-ups in the City. The program offers a broad range of services to clients. The annual cost to of the program is $10,000. Hennepin County provides half of the funds so the City cost to the City is $5,000 per year. Storefront Improvement Program With assistance from a grant from Hennepin County, the City has been able to offer a Storefront Improvement Program for businesses along Mainstreet. As part of the program, the City hired a retail merchandiser on a contract basis to work with up to 10 businesses and provide up to 20 hours of consulting services to each business. The retail merchandiser works with the business owner to come up with a plan to improve the look of the storefront and the visibility into the businesses and then the program provides a micro grant of up to $500 to implement the plan. To date the retail merchandiser has completed projects for Tibet Corner, Liquor Store and More, Kiddywampus, Hillary’s, Projects in Person, and Farmer’s Insurance. She is in the process of completing projects for Third Eye Blue, Munkabeans, and Zeller Gallery. Recommendation Staff recommends moving forward with a contract with Art Space to complete a Preliminary Feasibility Study to look at artist live/work and other artist space in the City. Additionally, staff recommends moving forward with a contract with Musicant Group to complete a Friendly (Store) Fronts program and opens streets event, if Hennepin County grants are secured, and to fund another round of the Façade Improvement Program using $100,000 from the City’s Development Fund. Mainstreet – Keeping It Real 2016 Final Report The City of Hopkins is experiencing a bit of a renaissance. Over the past few years, new businesses have emerged, and significant investments in both private and public buildings and infrastructure has taken place. In 2015, private investment totaled over $4 million on Mainstreet and included major facelifts including PUB 819 and Mill City Sound. In 2016, Driskill’s grocery store undertook a complete renovation. The Mainstreet reconstruction project gave the downtown a clean look and the Clock Tower Plaza was refreshed. The years 2015 and 2016 brought many new businesses to town as well, including Amy’s Cupcakes, Royal Comedy Theater, and Venture Photography. New initiatives such as street cafes, façade grants, window display assistance and performance art have brought a new energy and excitement to the street. There are more events, including block parties and private gatherings, and living and working in close proximity to Mainstreet is a trend. The future continues to look promising, and with the planned addition of the Light Rail Transit’s Green Line Extension, the downtown is poised to take advantage of the expanded market area that LRT will provide. The City of Hopkins staff and City Council felt it was important to spend some time talking with local stakeholders in the downtown area to get their feedback on the direction, opportunities and ideas that should be considered as we plan for the future. Participants were asked to commit to a series of four meetings over the summer of 2016. The promise was made that the meetings would be concise, interesting and valuable to both the City and participants. All agreed to participate and all brought expertise, energy and excitement to the table. Each meeting began with a presentation by an outside expert on that evening’s topic, followed by a presentation by staff on recommendations and work the City is already doing in that area. Attendees then broke into small groups to discuss their own ideas and specific questions posed by staff. Small groups then reported back to the larger group on themes and ideas, as well as answering the questions. Each meeting ended with attendees voting on their favorite ideas and recommendations of the night. The results of this work are both specific – a list of vetted ideas and valid concerns – and less tangible. Relationships were made, excitement about Hopkins’ future was elevated and seeds for new initiatives were sowed. The following attempts to capture the essence of the discussion and, although it is not to be viewed as a work plan or fully-formed ideas, gives direction to the City of Hopkins and our community partners. INTRODUCTION MAINSTREET – KEEPING IT REAL (AKA: A GUIDE TO AWESOMENESS) 2 The guest speaker for this topic was Andrew Dresdner, Cunningham Group. Andrew is a planner and architect who specializes in urban design and form. He talked to the group about the built environment of downtown Hopkins. He compared architectural façades that enhance the look and feel of Mainstreet versus those that do not. Specifically, he talked about window transparency and signage as key components to an attractive, pedestrian- friendly downtown. Andrew highlighted the need to focus on the pedestrian to enhance downtown and compete with other retail centers in the region. He calculated that in downtown Hopkins, 40 percent of the land area is dedicated to buildings, 40 percent is dedicated to cars, and only 20 percent is dedicated to pedestrians. He encouraged finding ways to increase both the amount and quality of space dedicated for people. Andrew also talked about anchors in terms of destination businesses that focus and attract traffic. He identified the Hopkins Center for the Arts and Driskill’s as two primary anchors in downtown Hopkins. He pointed out that in order to have a successful and busy Mainstreet, anchors are critical, and that they will enliven and support traffic on surrounding blocks. He noted, however, that a good anchor such as Hopkins Center for the Arts does have a limited reach, and that to expand Mainstreet to the west successfully, we would need another anchor business to draw foot traffic down Mainstreet in that direction. Andrew pointed out that without another anchor business to the west, downtown Hopkins could still experience growth by expanding business activity to the north and south between 7th and 11th Avenues. Andrew pointed out the intersection of 17th Avenue and Mainstreet as a likely future node for activity given its future connection to the light rail station just to the south. He mentioned that a strong bicycle connection between the light rail station and Mainstreet along 17th Avenue would strengthen this node. THE BUILT ENVIRONMENT OVERVIEW QUESTIONS FOR CONSIDERATION • Should the City’s design guidelines be requirements rather than suggestions? • Should the sign code be more prescriptive? Less prescriptive? • Should the City fund a façade improvement program? Are there other programs that would be more effective? • With scarce resources, should the same programs and treatments apply to all of Mainstreet, or just the central business district? • Should design standards apply to all of Mainstreet or just the central business district? • What other ideas do you have to improve the built environment of Mainstreet? RECOMMENDATIONS Generally, the task force was supportive of a higher standard of maintenance and improvements to commercial properties in the commercial district – including properties on the east and west ends of Mainstreet. The participants emphasized the need to bring the west end of Mainstreet, in particular, up to the same standards, continue the same uses and encourage the same level of street activity as in the core. They were also supportive of financial and technical assistance programs to help property owners undertake high quality improvements. There was an impression of some members that the City of Hopkins should be more consistent in the enforcement and interpretation of existing rules and regulations, as well as provide more education about what the standards require. 3 THE BUILT ENVIRONMENT RECOMMENDATION SUGGESTED ACTION Provide design consultant services (9)Explore the scope, budget and process for establishing a design consultation incentive program Matching financial incentive program (8)• Review lessons learned from the pilot façade rehab grant program offered in 2016 through a Hennepin County grant • Recommend program guidelines and budget for offering a matching grant program on an annual basis Extend design standards from Shady Oak Road to 5th Avenue; 1st Avenue North to 1st Avenue South (8) • Design guidelines and standards were extended to this area • Explore the zoning code for opportunities to encourage more desirable land uses Make design guidelines into standards (raise the bar on design requirements) (7) Planning staff to review current design guidelines and standards, and recommend changes as appropriate Signs standards specifically called out (2)Planning staff to review current sign code and make recommendations Brand/theme set of standards (6)Good design standards will lead to a design pattern without excluding the ability to reflect a unique appearance City-owned billboard for promotion (6)Explore options for increased billboard opportunities, primarily through working with existing billboards Room for individuality (5)As design standards are reviewed, attention will be paid to assuring flexibility Consistent enforcement (5)Communicate to enforcement staff (zoning and building code) the community support for consistent code enforcement beyond a complaint-based process Education on what the standards are (3)Following the review of design standards, staff will develop an informational piece on design standards, including signage, permitting requirements and maintenance code, and will provide to all applicable properties Attract the right mix of businesses (3)• Use the list of “missing businesses” to do targeted recruitment • Publicize the desire for certain businesses to locate in Hopkins Visibility from Highways 169 and 7, and Excelsior Boulevard (2) • Excelsior Boulevard visibility will be greatly enhanced by the Artery project/SW LRT • Explore National Register Historic District designation (with possible signage on Hwy 169) Target ten worst buildings/businesses (2) Staff will make sure that all property owners are notified of existing and new incentive programs Some of the specific ideas that were supported by the task force are: 4 DOWNTOWN BUSINESS FABRIC The guest speaker for this topic was Bruce Carlson from Doran Companies. Mr. Carlson made the following points: • Open-air retail center rents and occupancy are up • Small retail businesses have increased their presence • E-commerce is slowing because people prefer malls to online sales • Millennials enjoy the social aspect of bricks and mortar stores Kersten Elverum also spoke on trends including the following: • Population growing more culturally diverse, as well as younger and older • Women having growing influence • Baby Boomers and Millennials. Technology Sustainability Walking, biking and transit, including Light Rail Transit Central Business District vs. Social Business District • More emphasis on entertainment niches, including gathering places OVERVIEW BUSINESS GAPS, TYPES AND TRENDS QUESTIONS FOR CONSIDERATION • Do we have enough places for people to interact? • How should the west end of Mainstreet change over time? • What can we do to support our existing businesses and niches (antiques and resale, art and entertainment, restaurants and bars?) • What types of businesses are missing that would complement our existing mix? • Have you seen anything in another town and thought “We need that in Hopkins!”? • Housing – Do you support continued development of multi-family housing? Are there specific types of housing (senior, affordable, luxury, mixed-income, live/work) that should be pursued? Traditional Central Business District Trend toward Social Business District 5 Capt. Brent Johnson is sworn in as Chief of Police PO L I C E THE BUILT ENVIRONMENT RECOMMENDATION SUGGESTED ACTION Water feature/splash pad (9)A water feature (water wall) is being planned for the Artery to be constructed in 2017 Dog park (6)Staff will continue to look for opportunities for a dog park in Hopkins, but not on Mainstreet Interesting bike parking (3)Identify two locations for bike parking within the downtown and commission custom bike racks Create an anchor on the west end of Mainstreet (2)Rather than pursue an anchor development, effort will be put into strengthening the uses and building aesthetics through adaptive reuse and opportunity-driven redevelopment, including housing Flower baskets (2)Pursue only through the creation of a Business Improvement District Lighting (2)Staff will continue to explore ways to light the downtown – and extend lighting treatments – but due to the cost, this recommendation is best addressed through the creation of a Business Improvement District Let businesses have tables at City events (2) Review policy for events such as the Fire Department Open House and communicate opportunities as appropriate. What’s Missing: • “Etsy”co-op (9) • Clothing (8) • Bread/bakery (5) • Cooking school or supplies (5) • Food co-op (4) • Art supplies (3) • Used books (3) • Healthy family food (2) • Things moms can do (2) • Spa (1) • Global market (1) DOWNTOWN BUSINESS FABRIC BUSINESS GAPS, TYPES AND TRENDS RECOMMENDATIONS Some of the specific ideas that were supported by the task force are: 6 Hopkins Fire Department Open House F I R E BUSINESS GAPS, TYPES AND TRENDS THE BUILT ENVIRONMENTSTREET ACTIVATION Max Musicant, Musicant Group, was the guest speaker on this topic. Max talked about the importance of activating the edges within the downtown: the storefronts, the doorways, the entrances and corners. He demonstrated the value of creating spaces for people to interact, converse and develop relationships. Max focused on the Friendly Fronts Initiative that he developed, which helps residential communities create more social capital through creating enhanced interaction within a community. He has developed a tool kit to help people implement Friendly Fronts strategies into their own communities. We talked about how these strategies could be used by businesses to create enhanced spaces for people to interact in downtown Hopkins. Meg Beekman followed Max’s presentation by talking about the activation activities that the City has undertaken, including parklets, pop-up demonstration projects, public art and community festivals. She explained that the City of Hopkins has been on the forefront of this type of work. OVERVIEW QUESTIONS FOR CONSIDERATION • Have the sidewalk cafes been effective? • How can business owners and residents take ownership over street activation? • If a business owner wanted to take action in this area, what activities should they focus on? • Is there a way to do festivals and street closures that add to businesses on Mainstreet? • What other city-led opportunities exist to activate the Artery and Mainstreet? • Are there other areas the City should focus street activation? Such as alleys, Clock Tower Plaza or Downtown Park? 7 Written and designed by City staff Fall Youth Soccer Capt. Brent Johnson is sworn in as Chief of Police THE BUILT ENVIRONMENT RECOMMENDATION SUGGESTED ACTION When closing the street for festivals, require the booths to be down the middle of the street, back to back, so that the businesses aren’t cut off (8) • Communicate this recommendation to the Jaycees (Mainstreet Day) and Raspberry Festival (Family Days) • It has been tried but not well-received by event attendees Provide consistent notification to businesses when the street is planned to be closed or other events are taking place (5) Discuss with staff involved in street closure permits to explore better methods for notification Better marketing of festivals and events (4)• Continue to support community festivals and events by using City communication tools (newsletter, e-newsletter & social media), as well as our relationships with the media • Support promotion through Think Hopkins, as appropriate Provide information to businesses and the community on what’s ok and who to ask (4) Review City website and enhance information for commercial property owners including resources, contacts and commonly-asked questions Art pop-ups and interactive art and music (9)• Encourage through micro-grants • Continue to explore in coordination with the Hopkins Center for the Arts staff • Plan for activation of the Artery beginning in 2018 Wi-fi (5)Explore with IT staff the ability and cost of a free Wi-Fi zone Social Media Plan (consistency) • Example: Snapchat geofilter (8) Communications Coordinator to explore new ways to use social media and develop a social media plan Host an Open Streets event involving businesses (3)• Explore in collaboration with HBCA • Explore a broader concept that would incorporate more of the elements of a Friendly Store Front program Bring back Crazy Days (as part of Raspberry Festival) (3)• Suggestion will be forwarded to HBCA and Raspberry Festival committee for consideration STREET ACTIVATION RECOMMENDATIONS Generally, the group was supportive of continued street activation activities including street cafes. Even the businesses that are most impacted by the loss of parking felt that the energy they bring to the street is worth the loss of on-street parking. Some of the specific ideas that were supported by the task force are: 8 THE BUILT ENVIRONMENTMARKETING AND COLLABORATION OVERVIEW Fran Hesch gave a presentation that focused on her take-aways from the book Love Where You Live by Peter Kageyama and her experience with the City of Hopkins. She made the following the points: • Find ways to say “yes” • Have a sense of humor • Be emotionally-true • Trust Fran also encouraged people to be co-creators versus just consumers of Hopkins. She referenced a micro-grant program, awesomefoundation.org. She acknowledged the City of Hopkins’ support for this work through our Vision and Mission Statement, and projects including The Depot Coffee House and Hopkins Center for the Arts. She ended with a proposal of “Raspberries on Mainstreet” project, inspired by the “Mice on Main” installation in Greenville, South Carolina. Amy Saldanha gave a presentation on how to promote grassroots marketing efforts. She talked about the value of having business owners and residents “own” the love of their community, and how the City and other groups within the community can encourage and get out of people’s way as they find creative ways to express that love. She highlighted a micro-grant program that HBCA is starting that provides funds to businesses who want to do something creative to support their own business and the community. She encouraged the City to support social media hashtag campaigns to get people to express their love for Hopkins on their own social media outlets. She talked about yarn bombing and the positive press that a little creativity can generate for a community. Amy’s key point was that the people within the community are its greatest assets, and perhaps one of the best things the City can do is to get out of people’s way and find more ways to encourage citizens to express their pride in the community. QUESTIONS FOR CONSIDERATION • Is the Think Hopkins marketing brand effective? How could it be more effective? • Should Think Hopkins focus on more direct or external marketing efforts as opposed to more “community building” activities? • Should an historic district designation be pursued? • Of the ideas presented tonight, which do you support? • What other community groups should be invited to help make these ideas happen? • Thinking back over the course of the four meetings, do you have any final ideas you want to see get traction? Fran Hesch presenting her take on Love Where You Live Lively group discussion 9 Written and designed by City staff Fall Youth Soccer Capt. Brent Johnson is sworn in as Chief of Police THE BUILT ENVIRONMENT RECOMMENDATION SUGGESTED ACTION Scavenger-hunt raspberry figurines (6)Fran Hesch/HBCA are leading this project Winterfest: Holiday light tour, window decorating, shopping (5) Work with HBCA to support and grow Old Fashioned Holiday in Hopkins Awesome campaign: Microgrants (4)Explore the scope, process and budget for a micro-grant program Bicycle Friendly Community designation (4) • The City of Hopkins has applied and received honorable mention • The City Planner will update our application and reapply Think Hopkins: Does not speak to us/not emotionally honest (3) More fun needed in brand (4) Focus more externally (better advertising) and less “community building” (6) Be a forum The Community Development Coordinator will bring these comments/suggestions to the Think Hopkins marketing committee for discussion Actively preserve historic buildings (2)Staff will continue to explore the National Register Historic District designation for Mainstreet Be a collector and incubator of ideas. Tap former and present stakeholders for collaboration (3). Also mentioned neighborhood groups and HAMA. • This recommendation is a reflection of the group’s confidence of the community to support the vison and ideas of the City • Staff will continue to look for ways to partner with all community groups to further community-building work MARKETING AND COLLABORATION RECOMMENDATIONS In addition to the specific ideas identified below, the conversation centered around missed opportunities and the desire for the City to be more assertive when opportunities to change uses (from auto-centric to businesses that strengthen the arts, entertainment or bike/pedestrian) are presented. The group felt that the Think Hopkins marketing brand should focus more on external marketing and bringing new customers into downtown Hopkins. Generally, people felt that the brand was too generic and did not resonate with the essence of Hopkins. However, given the resources that have already gone into it, no one suggested that it be scrapped. Rather, people felt that more targeted external marketing with specific campaigns might better articulate what is great about Hopkins. The group expressed an interest in the historic district designation, but felt they didn’t have enough information to make a recommendation about it. Some of the specific ideas that were supported by the task force are: 10 THE BUILT ENVIRONMENTCONCLUSION This was an experimental attempt to get a broad perspective on the current status of Downtown Hopkins, gauge support for recent activities, and generate ideas for future projects. It is felt that we accomplished that and more. It was not an attempt to develop a long-range strategic plan, but the recommendations and conversations will be considered as part of the community input into the City’s Comprehensive Plan Update, to be completed in 2018. A very sincere thank you to the following members of the Mainstreet – Keeping It Real task force. Your energy, excitement and vision for Downtown Hopkins was contagious. • Lynn Anderson, Hopkins Center for the Arts • Bob Byers, Mainstreet Bar & Grill • Katy Campbell, Hopkins City Council • John Haga, Bongo’s & Bud’s Music Center • Fran Hesch, Resident & Former City Council Member • Brian Hunke, Planning Commission • Tom Hutsell, Big 10 Restaurant • Megan Kerber, Resident • Aaron Kuznia, Hopkins City Council • Tracy Ashley, Midnight Market • Tenzing Norsang, Tibet Corner • Steve Phyle, Tonka Cycle & Ski • Amy Saldanha, Kiddywampus & HBCA President • Rob Sheeley, Mill City Sound • Karen Woyak, Retro Wanderlust & Hopkins Antiques Association 11