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Home My WebLink AboutMinutes - 11/14/2006 - Economic Development Commission Economic Development Commission Regular Meeting Tuesday,November 14,2006 McHenry Municipal Center `'" 12:30 p.m. Present: Kay Bates, Bill Bolger, Kathleen Kunzer, Sue Low, Doug Maxeiner, Jack Minero, Joe Napolitano, Ned Neumann, Dick Paegelow, John Smith (arrived 12:48 p.m.), Richazd Wimmer. Absent: Kit Carstens (exc.), Dave Gelwicks(exc.),Kathy Marinangel. Guests in attendance: Theresa Lane, Supt. McHenry School District 156; Dave Krahn, Oswego Economic Development Corporation; Michael Cassa, Oswego Economic Development Corporation. The November 14, 2006 regularly scheduled meeting of the McHenry Economic Development Commission was called to order by Chairman Wimmer at 12:35 p.m. Approval of Minutes Motion by Bolger, seconded by Low, to approve the minutes of the September 12, 2006 regularly scheduled EDC Meeting as presented. All Ayes. Motion carried. Citv Revort Napolitano reported the number of building permits issued is down over the comparable period in 2005. He updated the Commission on the following developments/projects within the City: 1. Shops at the Fox: Bed,Bath and Beyond will open by December 18`; Office Ma�c will open in January; PetsMart, Dick's Sporting Goods and Best Buy will open in February; � Possibiliiv of Ulta, Old Navy and Wickes Furniture to locate in the future Temporary tr�c signals and turn lanes will be in place prior to first store opening 2. MEI-next to McHenry Savings Bank: Proposed tenants are a dry cleaners and liquor store 3. Medical Office Building under construction on Mercy Drive, 20,000 square feet; 4. Professional Office Building under construction south of McHenry Municipal Center,20,000 square feet; 5. Municipal Drive Expansion is in progress; paving to begin this week. Napolitano provided the Commission with copies of Newsletter surveys completed which indicated the most desired stores and restaurants to locate in the area: Stores Resta.urants Trader Joes Olive Garden Nine West Shoes Red Lobster Cost Plus World Market Chipotle Grill Best Buy Caribou Coffee Dick's Sporting Goods Buffalo Wild Wings Fumiture Store Carraba's Italian Grill JC Penney Lone Star Steakhouse Marshall Fields(aka Macy's) Outback Steakhouse Victoria's Secret Sweet Tomatoes. Bolger inquired as to the status of the previously mentioned Farrn and Fleet type business which had been making inquiries regarding locating in the City. Napotitano responded he had not heard from them recently. He noted he would follow up on the matter. � Page 2 EDC November 14,2006 � Minero noted Caribou Coffee is not interested in locating a restaurant in McHenry. They have been approached and indicated they are not interested. Napolitano noted Staff has compiled several documents which aze being used as economic development tools. He circulated the documents for Commission review. John Smith and his two guests, Mr. Krahn and Mr. Cassa, from the Oswego Economic Development Corporation(OEDC)arrived at 12:48 p.m. How to Successfiallv Build an EDC Mr. Krahn (founding member of OEDC, a ten-year old corporation) explained the structure of the OEDC, noting the corporation is a public/private entiiy. Board members (partners) are required to pay $5,000/year with a three year minimum term, for a total of$50,000 towards the OEDC annual operating budget. The Village of Oswe�;o share of the operating budget is $60,000, for a total operating budget at the inception of the corporation o�$110,000. Mr. Krahn noted the OEDC Board is comprised of representatives from t�ing districts in Oswego including the township, park district, Chamber of Commerce, plus bankers, realtors, developers, industrialists and engineers. Each board member is tops in their field. The OEDC at its inception deternuned that nothing could be accomplished unless specific goals were set. It was determined there was a need for a strategic downtown plan, delinearing what the OEDC wanted to accomplish and how they intended to make it happen. Mr. Krahn stated the OEDC realized it could not accomplish its goals by itself. It needed to have a champion for the cause. It was also necessary to think outside the box in determining ways to accomplish the �. established goals. It is key to have all community and governmental entities on the same page in order to achieve the OEDC goals. Mr. Krahn also stated an EDC needs to be an organization that everyone wants to belong to. An EDC needs to harness vision and energy in order to make the goals a reality. Mr. Cassa (Executive Director of OEDC) provided the Commission with his economic development background. He has been employed by the OEDC since 1998. Mr. Cassa noted every town needs a town leader to stimulate the community in order to make its vision and goals a reality. The initial OEDC budget was $110,000 annually. Today's annual budget is $425,000. The Oswego community conrinues to invest in its future. Mr. Cassa stated most successful EDC's aze combination public/private corporations. A community needs to utilize what it has as leverage in order to take it to the next level. Steps include: 1. The communiri�needs to have a shared vision in which all enrities "buy into"it; 2. The community needs to have a mechanism to implement the vision; 3. The community must be goal-driven—this is the hardest part to achieve. Mr. Krahn stated a community must have a good starting point. All entities in the community should have a role in making the goals happen. Questions by commissioners: Bolger inquired as to the greatest resource in Oswego. Mr. Krahn responded the Fox River which is the focal point of the community. Bolger asked the greatest concem of the OEDC. Mr. Krahn responded the greatest concern is maintaining the small town flavor in a town which has grown from 3,000 in 1990 to more than � Page 3 EDC November 14,2006 � 25,000 today. Mr. Krahn also stated it is key to have the town's Community Development Department be proactive in its approach to developers. The Staff needs to have great customer service and have a desire to see new business come into town. Mr. Krahn responded to further inquiry, noting the OEDC established its strategic plan as a result of a day- long board retreat. He noted every entity should have its own strategic plan (i.e. school disiricts, pazk districts,town/city, EDC, etc). He suggested it is good to create a five-year plan. Neumann inquirc�d how long it took to get the OEDC together once it was decided that Oswego should develop an economic development corporation. Mr. Krahn responded it took approximately three months. Mr. Krahn stated many OEDC meetings aze no open to the public, which can happen because of the type of corporation it is (public/private). The nature of many discussions and matters before the OEDC require negotiation whicli could be compromised if the meetings were a11 open to the public. He stated a community needs to think bib; it needs to believe it can accomplish its goals. A community needs to make sure there is continuiiy in the downtown district to assist in avoiding frequent business turnovers. In response to an inquiry regarding the source income in the current $425,000 annual budget, Mr. Cassa stated income is generated: $100,000 Tier 1 Partners ($5,000/year) Tier 2 Partners ($500/year) Tier 3 Partners ($2,500/yeaz) $ 60,000 Hotel Tax to fund the Visitor's Bureau, part of the OEDC $ 75,000 Ad Campaign from EDC Newsletter. � Mr. Cassa stated the bulk of the money is generated from dues, hotel tax, and revenue from ads sold in the newsletter. Approximately 1/3 of the budget expense is for personnel including benefits. It was noted economic development can not be done on a part time basis. Economic development has to be a full time endeavor. Mr. Krahn noted OEDC boazd members must have value and bring something to the board. Image is everything. If a community thinks big it can not expect to lost. Committee Reports Banquet Facilit�Recruitment: Neumann reported he continues to work with a party who is interested in opening a banquet facility in McHenry. Bates reported Church of Holy Apostles is contemplating tuming their existing church building into a banquet hall. Riverwalk: Smith reported Riverwalk Phase I is moving along. Landscaping has begun and will be completed in the spring. The new pedestrian bridge will be installed this week at the end of Riverside Drive. Chamber Renort Bates provided the commissioners with an update on current Chamber events and activities. She noted the Annual Dinner Dance will be held at D'Andreas in Crystal Lake in January. � Page 4 EDC November 14,2006 � Other Business There was no other business. Adjoumment Motion by Low, seconded by M�einer, to adjourn at 2:10 p.m. All ayes. Morion carried. Respe�ctfully submitted, ,, ' 9 d� Kathleen Kunzer. Recording Secret � �