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HomeMy WebLinkAbout04042007 Specialcrtvu~ ~E~~~h~ ;~.~ HOME OF PELICAN ISLAND SEBASTIAN CITY COUNCIL MINUTES ECONOMIC DEVELOPMENT WORKSHOP WEDNESDAY, APRIL 4, 2007 - 7:00 P.M. CITY COUNCIL CHAMBERS 1225 MAIN STREET, SEBASTIAN, FLORIDA Mayor Coy called the workshop to order at 7:00 p.m. 2. The Pledge of Allegiance was recited. 3. ROLL CALL City Council Present: Mayor Andrea Coy Vice-Mayor Sal Neglia Council Member AI Paternoster Council Member Dale Simchick Council Member Eugene Wolff Staff Present at Dais: City Manager, AI Minner City Attorney, Rich Stringer City Clerk, Sally Maio 4. CHAMBER PRESENTATON -BILL FROTH Beth Mitchell, Executive Director of the Sebastian River Area Chamber of Commerce said this workshop was requested at the recommendation of Chamber member Don Wright to bring knowledge of the importance of economic development for the City of Sebastian to the entire community, and then introduced Indian River County Chamber of Commerce Executive Director, Penny Chandler, Economic Development Director, Caseltine, Fellsmere Council Member, Susan Adams, Fellsmere City Manager, Jason Nunemaker, and Fellsmere Finance Director, Larry Napier. Ms. Mitchell then introduced Kathy Burke, CEO of Sebastian River Medical Center, who introduced William Fruth, President of Polycom Corporation, an independent economic research firm in Palm City, Florida who specializes in studying dynamics of local economies. She cited Mr. Fruth's background and nationwide experience in local economic development issues, commercial development and local politics. Mr. Fruth said improving the economy is the single most important thing a local government can do, and presented a power point presentation on the issue. City Council Workshop April 4, 2007 Page Two During his presentation, Mr. Fruth responded to questions from staff and City Council. Mr. Wolff asked how local growth charts are affected by the cyclical activity of various local industry such as citrus. Mr. Fruth said the citrus industry typically creates low rate jobs, and in his opinion, does not have a long term future because of strong competition from foreign countries. He said Indian River's biggest industry is retirement, citing Charlotte County as the oldest metropolitan area in America with its over age 65 population at 34% and they have no industry except for retirement. He said they also have the lowest wages of anyplace in America. He said Pinellas County was in the same situation until they brought in high paying industry and created a younger population through jobs, the average wage is now in the top 50, and they now have museums and other cultural amenities to offer. Mr. Neglia asked what we do about the numbers Mr. Fruth presented and Mr. Fruth said he would get to that at the close. Mr. Fruth continued with the power point presentation and defined Economic Development as "The process which improves the standard of living for the people who live and work in an area". 5. COUNCIL DISCUSSION Mr. Neglia said the City is beginning to do what it can to help its economy, and with the assistance of the Chamber we can work now to do something for the City, to bring in high paying jobs and to keep people here. He said while numbers show a lot, the City needs to get on with a plan. Mr. Wolff thanked Mr. Fruth for his presentation and had clarified by Mr. Fruth that retirement is the principal contributory factor in this area because it brings in retirement and social security checks. Mr. Wolff then asked how one can sell to its residents the benefit of bringing in growth and industry. Mr. Fruth cautioned against the word growth, noting economic growth can occur without population growth; and by way of explanation said if we are going to improve the standard of living for the people who are here, the tax burden would fall on the taxpayers' shoulders, however, primary employers consume very little tax services and throw off cash so their economic impact on the growth of government is significant; that they don't necessarily cause population growth but do improve the overall economy. He cited the CVS distribution center as an example of high paying jobs with no negative impact on the residency. Mr. Wolff then asked about enhancement of existing industry programs as a start. Mr. Fruth responded that it is important to first identify what you have, noting that the majority of primary employers employ less than 50 people. Mr. Wolff said that the City Manager had brought to Council's attention that Florida does not have much to offer as incentives to businesses and asked Mr. Fruth's opinion. Mr. 2 City Council Workshop April 4, 2007 Page Three Fruth said Florida is contributing more than it has in certain areas, however, nationally other states don't look upon Florida as stiff competition, noting that Georgia has a philosophy that if they want to bring in a company they just take a trip down to Florida and take one; that Florida's business climate is not the best in the nation because it is a highly regulated area. He said incentives are everywhere, you have to keep costs down, and expedite the permitting process, citing Pinellas Park will provide a building permit in 13 calendar days to qualified primary employers. Mayor Coy said the key is to identify what your target is and what your goal is and just because there is quantity doesn't mean there is quality, and the City is in a good position because of the property we have, and we need to offer incentives to people who are going to raise the economic bar. Mr. Paternoster thanked Mr. Fruth for his presentation, and asked how we bring in higher end jobs. Mr. Fruth said you need to create an incentive matrix which includes specific criteria and the ones that score the highest including higher wages get the incentives. He said this is a relatively low wage area. Ms. Simchick thanked Mr. Fruth, and commended the new found spirit of community; said we can look at what existing industry we have and if they exist, nuture them; noted we have the airport land and the labor and we need to start enticing the right groups, simultaneously step up funding for infrastructure; and create a strong relationship with our Chamber of Commerce. Mr. Fruth said land is the most important product. Mayor Coy said we have been doing the residential boom, and we need to look at enticing commercial annexation. She asked how important an economic development plan is to a local community and Mr. Fruth said you have to have a plan in place. Mayor Coy said incentives for the airport property could be in the lease agreements or infrastructure. Mr. Neglia asked if a City ran out of property to offer anyone what would happen. Mr. Fruth said when you run out of land you can look at redevelopment. Mr. Neglia said he cannot agree with Mr. Fruth on this. Mr. Fruth said you have approximately 150 acres to offer at the airport which could offer approximately 3,000 to 4,000 quality jobs which would significantly impact the local economy and this land would probably carry you for a fifteen year horizon. Mr. Fruth said there are training programs available for workers by local community colleges; and, in his opinion, there are many people in this area who are skilled but are commuting to other locations to work. Jason Nunemaker, City Manager, Fellsmere, addressed City Council, said there are things that Fellsmere has done to assist existing businesses, like staff level site plan City Council Workshop April 4, 2007 Page Four review for existing structures to expedite processes and minimize costs. He said it was most important to work together and offered the assistance of Fellsmere as a partner. Council Member Susan Adams, Fellsmere, thanked Council and Mr. Fruth for this opportunity and said she looked forward to working with Sebastian. Don Wright, Economic Development Chairman for the Sebastian River Area Chamber of Commerce, thanked Council and Mr. Fruth for the workshop, as well as the Indian River County and Sebastian Chambers for making this opportunity available; and extended his services to develop economic development plans. He said beyond the airport property, there are other available properties privately owned and public/private partnerships can be developed. He said consideration needs to be given for commercial annexation so the City does not run out of property for economic development. Mayor Coy received consensus for a future workshop within a sixty day period to hash out our ideas for a state of the art City economic development plan, which would give time for Council members to research and gather ideas and to attend Economic Development Council meetings. She asked the City Manager to make this happen and be sure to invite the Chamber. Mr. Neglia said he did not want to see commercial annexation thrown down our throats and cautioned we be careful how we go about it. Ms. Simchick said in addition to inviting the Chamber and public, groups with large commercial areas that are undeveloped should come forward. Mayor Coy thanked the Chamber of Commerce for funding the presentation by Mr. Fruth. Being no further business, Mayor Coy adjourned the workshop at 9:00 p.m. Approved at the May 9th, 2007 Re lar City Council Meeting. Andrea Coy, Mayor ATTF~T: ~~ - A. Maio,JMMC -City Clerk 4