Session 08-05, a Regular Meeting of the Economic Development Commission was called to order by Chair Hogan at 6:08 p.m. on August 12, 2008 at the City Hall Conference Room located at 491 E. Pioneer Avenue, Homer, Alaska.

PRESENT: COMMISSIONER ERICKSON, HOGAN, NEECE, RAVIN, SCARPITTA

STAFF: SPECIAL PROJECTS COORDINATOR HOLEN

DEPUTY CITY CLERK JACOBSEN

CITY PLANNER ABBOUD

AGENDA APPROVAL

The agenda was approved by consensus of the Commission.

PUBLIC COMMENT

There were no public comments.

RECONSIDERATION

There were no items for reconsideration.

MINUTES APPROVAL

A. July 8, 2008 Regular Meeting Minutes

The minutes were approved by consensus of the Commission.

VISITORS

Tina Day, Executive Director of the Chamber of Commerce, introduced Michael Haines, a member of the Chambers Economic Development Commission.

Michael Haines gave an overview of one of the projects the Chamber is working on for the purpose of entrepreneurship. His experience is that smaller communities may have all the resources to create an entrepreneurial community but there needs to be leadership in place to do that, and Homer needs a leader. The Chamber has stepped up to get that process moving and it is important that the two EDC’s work together in a relationship promoting entrepreneurship. Mr. Haines shared the analogy of a cookout. The public sector, in this case the City, has the fuel and stokes the grill. The private sector, one area being the Chamber, cooks the steak. If you don’t know what steaks are cooking, you don’t know how to stoke the grill. This analogy is to show the importance in the relationship of the two EDC’s, that they don’t replicate what each other is doing but there is a link between the two.

Some general objectives include:

· Create an entrepreneurial culture for all entrepreneurial endeavors.

· Create more successful, stable, and viable entrepreneurs.

· Create jobs.

· Bring together consortium/networks of private and public sector organizations.

· Leverage existing resources committed to entrepreneurship.

· Develop and nurture new resources where necessary.

· Create wealth in the community, and region… ‘Economic development is the creation of wealth’, defining wealth not in monetary terms but to the community in a number of terms.

· Help increase philanthropic giving through the creation of this entrepreneurial wealth.

· Leverage the entrepreneurial culture to attract new, quality businesses to the community and region.

· Work collaboratively with the City of Homer.

Primary community resources needed for entrepreneurs include a college or university, a library, chamber, a small business development counselor, local government, and local economic development. The resource that is most difficult to find is funding sources. Mr. Haines said he has had a difficult time finding venture capitalists who are interested in working in Alaska.

Mr. Haines explained in his analysis that good economic development is driven by four things, an educated workforce, quality of life, a business friendly public sector, and an entrepreneur culture. The entrepreneurial culture tends to drive the others. These four things are interrelated and if they are not in place, then economic development in a community suffers. Entrepreneurship creates 80% of all jobs in the United States. Statistically 9% of any adult population has the talent to become an entrepreneur. Mr. Haines noted things we know about entrepreneurship:

· It is a talent.

· It develops locally

· It relies on both local and regional resources

· Both public and private sectors play a roll in its development

· Classroom education alone cannot make a successful entrepreneur

· It does not discriminate

· Entrepreneurs fail, ‘Failure is part of the journey’

· Each entrepreneur is different

· Scientists/investors ‘invent’ entrepreneurs ‘innovate’

Community benefits of Entrepreneurship include:

· College- more students, identified as innovative and forward thinking college, helps meet goals of UAA Chancellor

· Chamber- more members, additional use of Chamber resources, added value for Chamber members

· School System- encourages school students to consider entrepreneurship as a viable profession, added/extended classes for students

· Funding Sources- Deal Flow

· Private Corporations- partnerships with entrepreneurial companies, markets for products/services

· City of Homer- increased tax base, job growth, identified as an innovative community

· Kenai Peninsula Borough- same as City of Homer

· State Economic Development- same as City of Homer and Kenai Peninsula Borough

· Successful Entrepreneurs- give back

· Homer Foundation- increased philanthropy

Ms. Day commented that the Chamber has requested matching funding from the City to help achieve these goals that Mr. Haines has addressed.

Mark Gregory, business counselor in Homer and partner with the Chambers Small Business Development Center, said he thinks this Small Business Development Center (SBDC) expansion project is a beginning point. It is not a Homer Chamber budget project. The State offices recognize a need for an SBDC locally because the Peninsula is one of the highest output centers per capita. Homer has about a third of the advising time, about 130 clients annually on average. Mr. Gregory is in Homer twice a month and with this kind of volume, when resources were discussed for expansion, he recommended that it be put in Homer. He thinks Homer can grow and this would be a beginning. They are hoping to get community buy in at a grass roots level. He doesn’t think there can be good development without having a need and the perception for the desire for this type of resource. He thinks if they agree they want to support the entrepreneurship and agree with the Chamber’s strategy the next step is to plant resources. Mr. Gregory said he would like to see some level of commitment from the City. He would like it to be in accordance with this budget, but if it is outside the City’s budget 2008, they are open to that. Mr. Gregory thinks the EDC can give some idea of what can work, what won’t, and support the strategy and resource.

Mr. Gregory said the funding proposal is for a $37,550 match. They are bringing money to the community. His hope is that on a one time basis, they can get the equipment, library, and training for the person in this office. With out the support of the Chamber and the community there are no clients. Mr. Gregory commented that the SBDC has great resources, but the Chamber doesn’t have the funding to expand the resource library. Mr. Gregory reviewed some general statistics and said that this does make a difference. In looking at economic development infrastructure, it is a time process. Mr. Haines added that the latest statistic from the National Business Incubation Association is anywhere from 87% to 90% of businesses that go through an incubator will graduate and become businesses.

Question was raised if this would be in competition with any services that are available in the private sector. Mr. Gregory said the SBDC is not trying to be a replacement for the accountants or attorneys. The SBDC acts as an advisor in connecting people with resources.

Ms. Day clarified the budget in relation to workshops, forums, training, and educational outreach. She said they are interested in bringing in key professionals for the workshops and forums. There would be a cost for people to participate in those projects. The expansion of the SBD library at the Chamber is outdated and they want to be able to provide the resource from the SBDC from electronic information, on line software, video seminars, and so forth. Program development is more along the lines of what Mr. Haines was discussing with developing programs, and working with Community Schools.

There was some discussion regarding the “Focus on Learning” program at the high school. Due to school district legalities, a person who isn’t a teacher can’t come in and teach the kids, but they are trying to put something together through Community Schools. There are areas there like the wood shop that are being under utilized and there is a lot of discussion going on about how all these entities can come together and focus their direction on the same goal. The Chamber committee is trying to bring them together to work on a workforce development program for high school and college students.

Ms. Day said as far as the expansion project, the Chamber is already looking at expanding their building and could possibly house some sort of incubator program. She doesn’t know if it will be physical or virtual, but being able to have those resources is important. They haven’t gotten down to the detail on what activities will be available when the counselor comes on board. She said she would email the strategic plan to the Commissioners to review.

Mr. Gregory commented that they bring in a large network in the family of services and if they agree with the strategy and agree to bring resources to it, the question is, is the SBDC the best. He feels that it is because they are the only statewide business assistance network that has this kind of offices and outreach. The SBDC is run by entrepreneurs, they are over 1000 offices strong, and have tried and true systems. Ms. Day added that an important part of the program is getting the vocational education students, who aren’t going to college, into the workforce and into apprenticeship trainings. Mr. Gregory believes that Homer is the ripest point in Alaska right now to put these resources. Ms. Day said they are going to continue moving forward and would love the City and this Commission to support them.

Regarding timeframes, Ms. Day said in September they will begin advertising the job for the local counselor and hope to have someone in place so they can train and the Chamber can establish what their role is with the SBDC on a daily basis.

Regarding current funding, Mr. Gregory commented that their funding comes through the statewide budget as well as fundraising through banks, and the capital budget. They can’t use Borough funding for cities. He hopes with the Commission tonight that the spirit of the project moves forward and then the administration can look at the FY 08 and 09 budgets. He is hopeful that they will support the concept.

They are making a presentation to the Council for September 22^nd.

STAFF REPORT AND COUNCIL REPORT

Special Projects Coordinator Holen commented that she has been working on the Capital Improvement Plan, which they will discuss later on the agenda, and the VISTA application, which is arduous, but she hopes to have it done by the end of the month. She said there is a vacancy on the Kenai Peninsula Economic Development District Board for someone from Homer. If anyone is interested they can talk to her or Dave Durham for more information.

Councilmember Wythe commented that Council did approve the VISTA request. There are ordinances regarding the size cap. In the time between the original size cap implementation and the decision of the Griswold case, the Planning Department and Commission have been working on a re-write of title 21. All the language in title 21 refers to the 66,000 square foot cap. The State decided the resolution setting the cap was thrown out because you can’t do zoning by referendum. As a result, there is an ordinance to bring it back to the language before the 66000 square foot cap. There is another ordinance that is with the Planning Commission to reestablish the size cap and going through the process again. Mrs. Wythe noted that it is convoluted. Council approved the title 21 rewrite even though the 66000 square foot is in there, and they introduced an ordinance that would bring the size limitation back to what it was before.

City Planner Abboud introduced himself to the Commission. He said they would be discussing the size cap ordinance at the next Planning Commission meeting.

It was noted that the recommendations on the three tax measures the Mayor recommended have been postponed to October.

PENDING BUSINESS

A. EDC Bylaws

Special Projects Coordinator Holen reviewed the amendments to the bylaws. There was discussion regarding membership and who is appointed as voting members and as non voting members. There was brief discussion regarding the Commission reviewing work of other Commissions. Ms. Holen said she had discussed it with the City Manager and expressed concern regarding logistics and who would be responsible for monitoring all the commissions. She said the City Manager had raised question if the EDC was proposing to be a filter through which all economic development suggestions/recommendations must pass through, then other bodies and council might have a problem with that.

Councilmember Wythe noted there is a section in the bylaws stating the EDC will consider any specific, proposal, problem, or project as directed by Council and that could relate to other groups or individuals. She feels that it would be appropriate to maintain the specific statement for the EDC to have opportunity review recommendations from the Planning Commission. She suggested it could be coordinated with the City Planner to have information forward to the EDC for review prior to it going before Council.

The Commission agreed to strike the middle part in lines 41-43 as it is redundant in lines 64, 65, and 66.

RAVIN/NEECE MOVED TO FORWARD THIS TO COUNCIL WITH THE AMENDMENTS DISCUSSED TODAY.

Commissioner Scarpitta felt it could be delayed for additional review. He moved to postpone adoption but there was no second.

VOTE: NON OBJECTION: UNANIMOUS CONSENT.

Motion carried.

B. Homer Chamber of Commerce Small Business Development Expansion

SCARPITTA/NEECE MOVED TO DISCUSS.

There was no discussion

VOTE: NON OBJECTION: UNANIMOUS CONSENT

Motion carried.

The Commission discussed the request for funding from the Chamber for the SBDC expansion. Discussion points included:

· Presently there is a long list of City employees and there is hesitance for another position.

· There are two groups, the City EDC and the Chamber EDC moving in the same direction and if the City doesn’t come forth to support the Chamber it gives the impression that we are not supportive of each other. It would send a bad signal.

· In looking at all the wants and needs of the City, the amount of funding doesn’t have to be the full amount requested and some funding would still show support for the Chamber’s efforts.

· The EDC can express their support and Council can establish how much financial support the City could offer.

· This funding request is not a continuum; it is like supporting an entrepreneur.

· These are good ideas and building blocks, but taking government money and giving services away for free is not necessarily a good use of public funds.

· This is a group that helps local economy.

· It is good that they have expressed interest in working with the school and getting some vocational programs going.

· The Chamber is on track with a goal.

Councilmember Wythe commented that that if the Commission wants to send their support of this concept to Council, it doesn’t have to be in dollars. They can encourage council to consider financing for the project at an acceptable level to the budget.

ERICKSON/HOGAN MOVED THAT WE APPROACH COUNCIL TO SUPPORT THE CONCEPT BROUGHT TO THEM BY THE CHAMBER.

The Commissioners continued to discuss the project and supporting the concept of working with the entrepreneurs and getting into the schools to work with students, however not all of the Commissioners were supportive of the City participating in funding the project.

ERICKSON/NEECE I CALL FOR THE QUESTION.

There was no discussion.

VOTE: YES: NEECE, HOGAN, ERICKSON, RAVIN, SCARPITTA

Motion carried.

VOTE: (Main Motion): YES: ERICKSON, HOGAN, SCARPITTA, NEECE

NO: RAVIN

Motion carried.

C. Strategic Planning

ERICKSON/RAVIN MOVED TO POSTPONE THIS TO THE NEXT AGENDA.

There was brief discussion.

VOTE: NON OBJECTION UNANIMOUS CONSENT

Motion carried.

NEW BUSINESS

A. Capital Improvement Plan

There was discussion that there are a lot of needs in the City and Council needs to decide where to focus funding. It was noted that the CIP priority adopted by Council is a tool used in lobbying for funding from the state as well. It was suggested that the Commission narrow their choice to what they believe would stimulate, promote, encourage, or assist with economic development in the community.

There was further discussion about revamping the process in the future in an attempt to get projects that don’t belong to the City off the City CIP and find another way to express support.

Chair Hogan called for a 5 minute break to review the list 8:40. The meeting resumed at 8:45.

The Commissioners ranked their top five choices as follows:

Hogan: Alternative Water Source, Williamsport Pile Bay Road, Skyline Fire, Main Street Reconstruction, Intersection Improvements, provided roundabouts are not on the list.

Chair Hogan commented the road improvements are needed, but doesn’t agree with roundabouts as a solution. Williamsport Pile Bay Road would bring a lot money into the town.

Scarpitta: Rescue Systems Upgrade, Aerial Truck, Main Street Reconstruction, Pioneer Avenue Upgrade, Conference Center

Commissioner Scarpitta commented to the importance of the rescue systems and fire suppression for taller buildings. Main Street and Pioneer Avenue are all downtown which looks like a mess. The conference center is a good project for economic development. He feels the water sources are more important, but he was looking at economic development.

Erickson: Bridge Creek Watershed Land Acquisition, Paving Freight Dock Road, Passenger Ship Gangway, Pioneer Dock Fenders, Williamsport Pile Bay Road

Commissioner Erickson expressed the paving, the gangway, and fenders are important projects for bringing the larger ships in safely. She agrees that Williamsport Pile Bay Road is important to look at.

Ravin: Alternative Water Supply, Aerial Truck, Rehabilitating Fire Engine 4, Kachemak Drive Rehabilitation and Pathway, Skyline Fire station

Commissioner Ravin had no additional comments.

Neece: Alternative Water Source, Homer Intersection Improvements, Kachemak Drive Rehabilitation, Paving Freight Dock Road, Conference Center

Commissioner Neece had no additional comments.

RAVIN/HOGAN MOVED TO HAVE STAFF TAKE THE TOP FIVE POINT GETTERS AND PRESENT THEM TO COUNCIL.

Question was raised whether there could be a way to privatize some of the projects like the Conference Center. It was agreed that it could be a separate discussion at another meeting.

VOTE: NON OBJECTION: UNANIMOUS CONSENT

Motion carried.

B. City Council Chambers Sound System

SCARPITTA/RAVIN MOVED TO DISCUSS.

There was no discussion.

VOTE: NON OBJECTION: UNANIMOUS CONSENT.

Motion carried.

Commissioner Scarpitta commented that he appreciates the equipment that is provided for hearing assistance, but it needs to be more readily accessible. He noted that some people may arrive late or may not be willing to speak up for assistance the way others do. Commissioner Scarpitta urged people sitting at the table to speak into their microphones.

Commissioner Ravin proposed that the group make an advisory recommendation to the City Council to conscientiously use their personal microphones at their meetings in the Council Chambers.

RAVIN/NEECE MOVED THAT WE PROPOSE THE CITY COUNCIL FIT THEIR SPEAKING MEMBERS WITH THROAT MIKES.

There was no discussion.

VOTE: NON OBJECTION. UNANIMOUS CONSENT

Motion carried.

C. Federal Funding Opportunities

The Commission agreed to take this up at the next meeting.

INFORMATIONAL ITEMS

A. Video by Stephen Scarpitta/Homer Chamber of Commerce

The Commission agreed to add this as an agenda item at the next meeting so it could be discussed in conjunction with Commissioner Neece’s prior meeting comments for a promotional video for Homer.

B. VISTA Resolution approved by City Council

C. “Investment Alternatives for Entrepreneurs: An Opportunity for Homer” article by Michael Haines

D. Items from August 11 City Council Meeting Packet: Manager’s Report and draft Ordinance 08-26(A) regarding retail store size limitations

COMMENTS OF THE AUDIENCE

Nikolai Yakunin talked to the Commission about their role as he is interested in applying for a seat.

COMMENTS OF THE CITY STAFF

There were no staff comments.

COMMENTS OF THE COUNCIL MEMBER

Councilmember Wythe commented that she likes the recommendations she sees coming from the Commission.

COMMENTS OF THE CHAIR

Chair Hogan trusted that Councilmember Wythe will share his heartburn regarding City funding for the SBDC. He appreciates all the Commissioners input and staff support. He is working to keep the meetings at 2 hours or less.

COMMENTS OF THE COMMISSION MEMBERS

Commissioner Neece commented that we are young and will get it refined.

Commissioner Scarpitta agreed with Mr. Neece and said he loves everyone here and he wished they could get together at other times. He thinks they will get good things done.

Commissioner Erickson suggested they could do a rotation of Commissioners bringing pizza for the meetings. She reported that she went to her first Lease Committee Meeting for the State leasing out at the spit for a warehouse for 50 years. She thinks the Commission should do a comprehensive look at the spit, leases, and what it all should look like. It seems like some things could be tied together so it isn’t so random.

Commissioner Ravin said at the next meeting he is going to propose and enterprise to exempt all local produce and possibly locally produced merchandise. He will present a framework at the next meeting. He also wants to discuss at the next meeting, extending the tax exemption to our Sister City in Magadan. We could be the point of entry for a lot of Russian vodka and other items. It’s on sale at the Grog Shop. He is serious about an enterprise zone. Mr. Ravin is inviting Representative Seaton to the next meeting to talk about alternative energy in support of the concept of sustainable Homer. He wants to come up with incentives or grant money to have local point of use energy production.

ADJOURN

There being no further business to come before the Commission, the meeting adjourned at 9:16 p.m. The next Regular Meeting is scheduled for September 9, 2008 at 6:00 p.m. in the City Hall Cowles Council Chambers. A worksession is scheduled for September 23, 2008 at 6:00 p.m. in the City Hall Cowles Council Chambers.

MELISSA JACOBSEN, DEPUTY CITY CLERK

Approved: