Session 07-05 a Regular Meeting of the Economic Development Advisory Commission was called to order at 6:07 pm on June 12, 2007 by Chair Howard at the City Hall Cowles Council Chambers located at 491 E. Pioneer Avenue, Homer, Alaska.

 

PRESENT:       COMMISSIONERS FAULKNER, HOWARD, MURPHY, NEWBY, RILEY, SCHEER (arrived at 7pm)

 

ABSENT:        COUNCILMEMBER WYTHE (excused)

STAFF:            SPECIAL PROJECTS COORDINATOR HOLEN

                        DEPUTY CITY CLERK JACOBSEN

 

APPROVAL OF THE AGENDA

 

NEWBY/RILEY MOVED TO APPROVE THE AGENDA.

 

There was no discussion.

 

VOTE:  NON OBJECTION: UNANIMOUS CONSENT

 

Motion carried.

 

PUBLIC COMMENTS REGARDING ITEMS ON THE AGENDA

 

APPROVAL OF MINUTES

 

A.        Unapproved meeting minutes of April 10, 2007

 

MURPHY/NEWBY MOVED TO APPROVE THE MINUTES.

 

There was brief discussion.

 

VOTE:  NON OBJECTION: UNANIMOUS CONSENT

 

Motion carried.

 

VISITORS

 

A.        Gaye Wolf, Coordinator of ARTrageous August, a collaboration of Community Non-Profits and Businesses

 

Gaye Wolfe, coordinator of ARTrageous August, spoke to the Commission about the importance of the art community in Homer.  She commented that the ARTrageous theme is the vehicle the art community has found to put themselves on the map.  Ms. Wolfe handed out event flyers and explained that this program has been a four year process which started as an event in the fall designed to bring people into the community when the economics of the community are on the down side.  The idea was to have more happening during the weekend of the Ritz and First Friday to encourage people to come from Anchorage to Homer and spend money in the community.  The event took place in November and the first year was very successful, however the next two years but didn’t get the same overall results so they considered the end of August.  There were events that were already happening during that time and this was an opportunity to get them all wrapped around ARTrageous August.  It was a very successful, busy month of activities, workshops and events.  The group that put it all together included the Bunnell Street Gallery, Pratt Museum, Homer Council on the Arts, Chamber of Commerce and the four local galleries and they all pitched in $100 to get it started.  Ms. Wolfe said this event has brought forth a sense of camaraderie among the arts and cultural organizations.  For this years event 5000 flyers have been mailed out of town and they have 5000 more to distribute around town.  If funding allows, they would like to do a Homer mailing as well.  Ms. Wolfe said they are working to brand Homer noting that Homer has been the Halibut Fishing Capital of the World, a brand that has stuck for a lot of years, but fishing isn’t necessarily year round and the arts are.  She said they have tremendous support from all the organizations to work forward in this but they don’t have the money.  She provided a copy of their budget for the Commission to review along with a list of the organizations and groups that are presently involved. 

 

Ms. Wolfe presented a copy of Arts and Economic Prosperity III, a national study that comes out every few years.  She read the report which concluded that;

The non profit arts and culture are a $2.65 million industry in the City of Homer, one that supports 83 full time equivalent jobs and generates $273,000 in local and state government revenue.  Non profit arts and cultural organizations which spend $1.25 annually leverage a remarkable $1.41 million in additional spending by arts and cultural audiences, spending that becomes vital revenue into local businesses in the City of Homer.  By demonstrating that investing in the arts and culture yields economic benefits Arts and Economic Prosperity III lays to rest a common misconception  that communities support the arts and culture at the expense of local economic development.  In fact, they are investing in an industry that supports jobs, generates government revenue and is a corner stone of tourism.  This report shows conclusively that the arts mean business in the City of Homer. 

 

Ms. Wolfe is very excited to be part of Homer.  She sees ARTrageous August becoming ARTrageous Homer, a year round business opportunity.  She said if the City would be able to help with the budget they would be thrilled.  Tina Day, Director of the Homer Chamber of Commerce, said the Chamber has always supported this program and information will be available on the Chamber’s website.

 

The Commission discussed the importance of arts in the Community and the importance of including arts in the Comprehensive Economic Development Strategy (CEDS).   It was noted that there is information on page 27 of the packet with bullets regarding arts-based economic development strategies.

 

There was discussion regarding funding for the program.  Ms. Wolfe said they tried to get a grant through the Homer Foundation but were turned down because they were working with businesses.  It was noted that local businesses are getting frustrated with donating because they haven’t seen a return yet, but now that it is going somewhere, hopefully there will be more involvement.

 

 

STAFF REPORT AND COUNCIL REPORT

 

A.        Memorandum 07-from Special Projects Coordinator Holen

 

Special Projects Coordinator Holen reviewed her staff report.  Comments included:

·        Update on status of the Commission’s lease policy recommendations.

·        Lease proposal from Hughes Pellets Alaska, a company interested in exporting wood pellets from the Kenai Peninsula.

·        Legislative funds wereappropriated, which included $2.5 million for the college to purchase the City Hall building, however, the Governor can still exercise her line item veto powers for 20 days after a bill is transmitted to her and as of today the Capital Budget Bill has not been transmitted.

·        City Hall Town Plaza update.

·        CEDS update, hopes to get back to it after the first of the year.

·        Michelle Hoffman with USDA expressed interest in USDA funding for the City Hall Town Plaza project. 

·        Comp Plan update is percolating along.  The public meeting was well attended.  There was discussion at a later meeting that the Comp Plan should be geared toward guiding principles and larger goals.

·        City didn’t get grant to purchase fish for the fishing hole in 2008.

·        Steve Colt with The Institute of Social and Economic Research (ISER) expressed interest in including Homer in a study regarding the economic impact of charter fishing, guided and unguided sport fishing and commercial fishing.  The approximate cost would be $20,000 for Homer to be included.

 

Chair Howard commented that the Comp Plan public meeting and asked that the draft summary of the first meeting be included in the next packet. 

 

Commissioner Newby commented regarding the EDD meeting. 

·        Discussion centered on creating a fertile field for the growth of a strong entrepreneurial environment. 

·        Angel Investing focuses on fostering private equity, training investors and entrepreneurs and looking at various opportunities. There are a number of retired people with extensive backgrounds and people of higher means who may be interested in participating locally. 

·        Another speaker encouraged staying open minded in looking at various opportunities, encouraging entrepreneurialism in the classroom and developing a comprehensive, prioritized, published state economic development plan. A state plan would show how different communities fit into the puzzle framework.

·        USDA has a funding program to fund economic development planning.

·        Alaska uses the internet more than any other state on a per capita base and ranks number 6 in the country in entrepreneurial activity.  Alaska ranks 47th in venture capitalists and 36th in the number of high tech jobs.

 

Commissioner Newby commented that some thought regarding Economic Development is to bring in something big to create a hundred jobs, but perhaps they should be thinking about how to broaden the base we have in Homer and add tools to that base to continue to foster the growth of entrepreneurial activities.

 

Chair Howard called for a short break at 7:04 pm.  The meeting resumed at 7:09 pm.

 

PENDING BUSINESS

 

A.        Lease Policy Recommendations- Draft Memo for Council consideration on May 14

 

It was consensus of the Commission that action had already been taken and no motion was made to bring it to the floor.

 

B.         Policy Analysis Re: Halibut Allocation - Discussion of the City’s role

 

FAULKNER/SCHEER MOVED TO DISCUSS.

 

VOTE:  NON OBJECTION: UNANIMOUS CONSENT

 

Motion carried.

 

There was discussion regarding the previous action the Commission took when the state was looking at reducing the daily catch limit.  It was a resolution that was prepared under pressure of a short time frame.  Points of discussion included:

*    The City should take a definitive position on what they do or do not support, or express elements of the debate with what the City is concerned with.  

*    The halibut industry is significant and regulations will have significant impacts to Homer.

*    It needs to be approached in a factual, methodical, sensible manner.

*    It would be incumbent on the City’s economic policies to understand the economic impact of all of our industries, the component within the fishing industry, and various support industries related to sport and commercial fishing.

*    Spending the $20,000 to participate in the ISER study to try to ensure that the halibut resource is allocated in the highest and best use, would be beneficial.

*    Have staff start to format a recommendation to the City and include in the recommendation that the City check with USDA, who has been supportive of fisheries related things in Homer, for funding some sort of analysis  In essence, make a recommendation and include some tools.

*    The Commission should look more thoroughly at the scope of what the study would entail.  $20,000 is a start, but probably won’t get much done.  It may be an expensive study, but it needs to be done in order to understand the scope of what is going on.

 

Chair Howard agreed to contact Steve Colt with ISER to get information regarding cost of a complete study.   The Commission discussed that a natural resource is being harvested by different industries for different purposes and they want an understanding of how the resource should be harvested to leverage its for the best return for the citizens.  The halibut fishery has been managed since 1923 and is probably the best managed resource and it is sustainable.  The real question is how should we, the people, access the resource and how should it be taken to maximize the benefit.  That is the question policy makers should be addressing.  Comment was made that another important component is who the gatherers are and what their home base is as it could lead to different taxing policies.  It was also noted that a study of this nature would be beneficial for Port and Harbor Operations.

 

NEW BUSINESS

 

A.        Municipal Planning and Economic Development

 

Commissioner Scheer requested this be addressed at the next meeting.  Special Projects Coordinator Holen said she would contact Planning Technician Engebretsen and City Planner McKibben to see if either of them would be available for discussion at their next meeting.

 

B.         Health Care Sections of the CEDS - selection of a Lead Commissioner

 

There was brief discussion regarding a Commissioner to take on the Health Care Section of the CEDS.  It was pointed out that they are short a Commissioner and Commissioner Murphy said he has been in contact with Elizabeth Parmely, a prior EDC Commissioner.  He said she has some interest in joining the group, Commissioner Newby said she would contact her as well.

 

C.        Assessing the Impact of Homer’s Aging Population

 

MURPHY/SCHEER MOVED TO BRING ITEM C TO THE FLOOR.

 

VOTE:  NON OBJECTION: UNANIMOUS CONSENT

 

Motion carried.

 

The Commission recognized that there are some insightful statistics regarding the aging population in the Issues and Goals Report of the Comp Plan Update.  It shows trends of people coming into Homer who are not in the labor force, not looking for job and are retired, adding to the age distribution of the City.  It poses the question of how do we get them involved. Their discussion points included:

·        Because of the difference in the age of the population today, different services and infrastructure are required.  Revenues to the community are falling, yet costs are going up.

·        Taking it to an extreme, if it were an all aging population and all owned tax exempt real estate, income would really be down, yet there would still be a need for the services.

·        The senior exemption is a state mandated exemption and the community may need to address whether it is going to have an adverse effect to the extent that is a need to start lobbying the legislature for a change.

·        Some of the shift in demographics will open up some new industries that we haven’t had before, like the need for personal services.

·        The more "well to do" older people coming into the community spend a great deal of money outside the community and we need to find a way to get them to spend their money here.

·        A downside of an aging population is in hiring them to do jobs some times health issues come in to play.

·         They may simply need to look at a cost of a community services study to look at the balance between the cost of services like water, sewer, road maintenance to the type of housing, versus their property tax or direct revenue that is going into the city.

·         It was argued that there is a positive relationship between an aging population and the cost base of running the City.  More facts are needed to make evaluations.

 

The Commission continued discussion regarding these changing demographics, the effects on City services, schools, property tax revenues, goods and services and so forth.  Both sides of the issues were discussed at length.  They agree it is an issue that needs to be looked at closely so information can be gathered to determine what changes can be made through out the City to maintain fiscal growth.  Commissioner Scheer said he would provide some information he compiled a year or so ago for the Commission to review.

 

INFORMATIONAL MATERIALS

 

A.         NGA Issue Brief: Strengthening Rural Economies Through the Arts

 

B.         Issues and Goals Report (Current Draft)- Homer Comprehensive Plan Update

 

C.         “Ten Principles for Creating Successful Squares” and “Stumbling Blocks to Creating Great Civic Centers…and How to Overcome Them”

 

D.         Economic Development Section of 1999 Comprehensive Plan

 

E.         Bradner’s Alaska Economic Report

 

COMMENTS OF THE AUDIENCE

 

No audience comments.

 

COMMENTS OF CITY STAFF

 

No staff comments

 

COMMENTS OF THE CHAIR

 

Chair Howard had no comment.

 

COMMENTS OF THE COMMISSION

 

The Commission had no further comments.

 

ADJOURN

There being no further business to come before the Commission the meeting was adjourned at 8:36 pm.  The next regular meeting is scheduled for July 10, 2007 at 6:00 pm at the City Hall Cowles Council Chambers located at 491 E. Pioneer Avenue, Homer, Alaska.  There is a worksession at 5:00 pm prior to the meeting. 

 

                                                                                   

MELISSA JACOBSEN, DEPUTY CITY CLERK

 

Approved: