4.1.
Economic Development Authority (EDA)
- Meeting Date:
- 05/10/2018
- Submitted For:
- Patrick Brama
- By:
- Patrick Brama, Administrative Services
Title:
Recruiting Restaurants to Ramsey
Purpose/Background:
PURPOSE
Provide staff with preliminary input on various potential strategies to aid the city in pursuing new restaurant users.
BACKGROUND
The city continues to receive feedback from residents, businesses, visitors, and elected/ appointed officials that Ramsey needs more restaurants. The purpose of this case is to scope out various potential strategies the city may want to further pursue to achieve this goal.
Provide staff with preliminary input on various potential strategies to aid the city in pursuing new restaurant users.
BACKGROUND
The city continues to receive feedback from residents, businesses, visitors, and elected/ appointed officials that Ramsey needs more restaurants. The purpose of this case is to scope out various potential strategies the city may want to further pursue to achieve this goal.
Notification:
Observations/Alternatives:
Attached to this case is a map showing all existing restaurants in Ramsey; along with some general background information. Listed below are "new" strategies the city may want to consider.
EXAMPLE STRATEGIES
(1) Revive City's Former Full Service Restaurant Subsidy Policy (WAC Fees)
See attached former policy. This policy was focused on forgiving 70% of the city's water access charges. The City used this subsidy two times in the past (Acapulco and Falls Cafe). The Falls Cafe ended up not using the subsidy. WAC fees on a single new restaurant can run 10's of thousands of dollars. This program doesn't require the city to upfront fund the subsidy--it's a reduction in city development fees a restaurant user would have paid the City.
(2) Amend City's Existing Revolving Loan Program to make Restaurants Eligible
See attached loan program policy. The City has about $200,000 available in this loan fund. Today, the policy isn't clear on restaurants' eligibility for this program. Obtaining financing for restaurants can be challenging--this is an opportunity to provide a partial solution. NOTE: the City's loan fund can be used for a maximum 40% of project costs.
(3) Establish a Sign & Awning Grant Program
Staff is aware of a program utilized by the City of Hutchinson to help encourage restaurant/ retail investment within their downtown. Please see attached application from Hutchinson. The program provides a one-time grant to help users with the cost to upgrade/ replace/ construct new signs and awnings. Staff believes this program could be used in Ramsey ($1,500 grant for example). The City could use the EDA Fund as the funding source.
(4) Expand City's Business Welcome Services
Today, when a new business comes to the City of Ramsey, staff offers the attached "business welcome" opportunities. This includes a free facebook post, twitter post, city newsletter article, website article, grand opening ceremony services from the chamber, and a newspaper article lead. For new restaurants, staff believes the city could expand these services to include free admission to various city events*.
*EDA Business Expo, EDA Golf Tournament hole sponsor, Happy Days Business Expo, Happy Days parade, Draw Event Series signage, etc.
(5) Reconsider the City's Marketing Strategy
The city may want to reconsider their strategy for marketing city owned land available for sale. Currently, the city is utilizing CBRE (marketing, pursing leads, advertising, listing, etc.). CBRE leads the city's effort in recruiting restaurants. Staff supplements CBRE's efforts--and on a case by case basis, as time allows, attempts reach out directly to prospect restaurants. The contract with CBRE ends on July 30, 2018. The City has used CBRE since 2014. Before CBRE, the City utilized Landform Professional Services to help market city owned land (2011-2013). The EDA has previously discussed this subject in-depth (2016/2017)--and ultimately decided to extend the CBRE contract by one year.
EXAMPLE STRATEGIES
(1) Revive City's Former Full Service Restaurant Subsidy Policy (WAC Fees)
See attached former policy. This policy was focused on forgiving 70% of the city's water access charges. The City used this subsidy two times in the past (Acapulco and Falls Cafe). The Falls Cafe ended up not using the subsidy. WAC fees on a single new restaurant can run 10's of thousands of dollars. This program doesn't require the city to upfront fund the subsidy--it's a reduction in city development fees a restaurant user would have paid the City.
(2) Amend City's Existing Revolving Loan Program to make Restaurants Eligible
See attached loan program policy. The City has about $200,000 available in this loan fund. Today, the policy isn't clear on restaurants' eligibility for this program. Obtaining financing for restaurants can be challenging--this is an opportunity to provide a partial solution. NOTE: the City's loan fund can be used for a maximum 40% of project costs.
(3) Establish a Sign & Awning Grant Program
Staff is aware of a program utilized by the City of Hutchinson to help encourage restaurant/ retail investment within their downtown. Please see attached application from Hutchinson. The program provides a one-time grant to help users with the cost to upgrade/ replace/ construct new signs and awnings. Staff believes this program could be used in Ramsey ($1,500 grant for example). The City could use the EDA Fund as the funding source.
(4) Expand City's Business Welcome Services
Today, when a new business comes to the City of Ramsey, staff offers the attached "business welcome" opportunities. This includes a free facebook post, twitter post, city newsletter article, website article, grand opening ceremony services from the chamber, and a newspaper article lead. For new restaurants, staff believes the city could expand these services to include free admission to various city events*.
*EDA Business Expo, EDA Golf Tournament hole sponsor, Happy Days Business Expo, Happy Days parade, Draw Event Series signage, etc.
(5) Reconsider the City's Marketing Strategy
The city may want to reconsider their strategy for marketing city owned land available for sale. Currently, the city is utilizing CBRE (marketing, pursing leads, advertising, listing, etc.). CBRE leads the city's effort in recruiting restaurants. Staff supplements CBRE's efforts--and on a case by case basis, as time allows, attempts reach out directly to prospect restaurants. The contract with CBRE ends on July 30, 2018. The City has used CBRE since 2014. Before CBRE, the City utilized Landform Professional Services to help market city owned land (2011-2013). The EDA has previously discussed this subject in-depth (2016/2017)--and ultimately decided to extend the CBRE contract by one year.
Funding Source:
Recommendation:
Staff is not looking for formal or detailed direction from the EDA today. However, staff would like to generally gauge the EDA's interest in further pursuing the five alternatives listed within this case. If interest generally exists to further consider these alternatives, staff would bring back a follow up case with detailed information and detailed recommendations (including policy parameters).
NOTE: staff is currently working with a new full-service restaurant user considering locating in Ramsey (The COR). This user is interested in the sign/ awning grant program (#3) and the expanded business welcome blast (#4). If the EDA does generally have interest in pursuing strategies #3 and #4, staff would anticipate bringing forward this request/ user in June for consideration.
Action:
See recommendation section.
Attachments
- Background
- Former Subsidy Policy WAC
- EDA Loan Program
- City of Hutchinson Sign and Awning Grant
- Business Welcome Opportunities
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| Kurt Ulrich | Kurt Ulrich | 05/07/2018 02:48 PM |
- Form Started By:
- Patrick Brama
- Started On:
- 03/09/2018 01:51 PM
- Final Approval Date:
- 05/07/2018