ECONOMIC
DEVELOPMENT ADVISORY COMMISSION UNAPPROVED
SPECIAL
MEETING
Session 08-03, a Special Meeting of the Economic Development Advisory
Commission was called to order at
PRESENT: COMMISSIONERS ERICKSON,
HOGAN, NEECE, RAVIN, SCARPITTA
ABSENT: COMMISSIONER
RILEY (EXCUSED)
COUNCILPERSON: BETH WYTHE
STAFF: SPECIAL
PROJECTS COORDINATOR HOLEN
PLANNING
TECHNICIAN ENGEBRETSEN
DEPUTY
APPROVAL
OF THE AGENDA
RAVIN/ERICKSON
– MOVED TO APPROVE THE AGENDA.
There was
no discussion.
The
agenda was approved by consensus of the Commission.
PUBLIC
COMMENTS REGARDING ITEMS ON THE AGENDA
None.
PENDING
BUSINESS
A. Election
of Chair and Vice Chair
Acting
Chair Hogan opened the floor for nominations for Chairperson.
RAVIN/SCARPITTA
– MOVED TO NOMINATE KEVIN HOGAN AS CHAIR.
Special
Projects Coordinator Holen addressed concerns regarding Commissioner Riley’s
attendance. Ms. Holen stated Commissioner Riley regrettably was unable to
attend this meeting due to scheduling conflicts. She understood and supported
election of a new chair. Commissioner Hogan stated he would accept the nomination
and serve until the November elections.
There were no further nominations and Acting Chair Hogan closed the
nominations.
Commissioner
Hogan was elected Chair by consensus of the Commission.
Chair
Hogan opened the floor for nominations for Vice Chairperson.
Neece/Ravin – MOVED TO nominate Commissioner
Scarpitta for vice chair.
Commissioner
Scarpitta assured Commissioner Ravin that he will be in attendance for every
meeting.
There were no further nominations and Chair Hogan closed the
nominations.
Commissioner
Scarpitta was elected Vice Chair by consensus of the Commission.
B.
Chair
Hogan reported that City Council addressed this item during the Council meeting
on
There was
no further discussion.
C. EDC
Strategic Plan
Planning Technician Engebretsen briefly described the process for
developing a Strategic Plan. She solicited ideas or concerns from the
Commissioners that they would like to resolve over the next two to five year
period. She will then categorize and have a draft plan ready for the August
meeting. The following was offered:
1. Increased Employment Opportunities –
Technology, Administrative/Office, Skilled
Encourage,
create or bring in opportunities to offer graduating students from the college
and high school so they can stay in Homer or the surrounding area.
2. Economic Development
Plan - City Council has
expectations from the Commission to address, review and modify this plan on a
consistent basis
3. Port & Harbor Freight
in and out of Homer instead of
Market
small cruise ship lines
Development
near the chippad to encourage businesses that service
the
fleet and processors better.
Commercial
Fishing - how can we market this effectively to encourage
making
Homer the home port.
4.
5. New
Business - Develop
new rules and regulations to encourage
new construction
and
business development.
Business information Resources
Change
public perception
- Seward – They will build it for you.
- Kenai – They give you the land and
- Homer – You get two plus years of red tape
There was a brief discussion on
6. Leases Should
encourage business growth, be reasonable and attractive
-
The City requires top dollar, all taxes, and improvements
- Need
effective and equitable lease terms
There was a brief discussion on previous leases that the City took over
and lease requirements. It was determined that this would be a priority on
their list.
7. Sales Tax and Property
Tax
8. Agriculture
9. Manufacturing
10. Mining
Commissioner
Ravin further elaborated that items 8-10 are separate from the Port, but equally
involve aspects of the port. These items may not develop in town, but will
develop around the City. The City will be the marketplace and the port can be
used for shipping instead of
Discussion
ensued on the overall city role regarding economic growth, planning for growth
or no growth. An example was given of a big business wanting to start up and
the results were that the City of
Commissioner
Erickson clarified item #7, sales and property tax section. It should address
taxes in general. She stated that they should look at the food tax, and gasoline
tax; review changing from a percentage to cents on the gallon tax for fuel. This
would relieve some tax burden on a lot of people. The property tax could be
reviewed to determine if it is fair and equitable for business and private or
residential properties. She gave an example of the newly implemented water
rates. It is very difficult to stay in business when most actions come down
hard on the business owner. More taxation and regulations will prohibit small
business.
Commissioner
Scarpitta commented that he is very excited about the development of the plan.
He would like to have more discussion in the future on the mining topic.
Planning Technician Engebretsen commented that the agriculture, manufacturing
and mining all come together for development of the reputation of “being open
for business”.
There was
a brief discussion on the Lease Committee, representation and review of the
lease policy. It was recommended to put this on the agenda for the next few
meetings as a regular agenda item.
11. Workforce Development - Similar to a
business incubator
-
Government funding available, classes for producing
skilled
labor, Vocational Technical oriented.
Commissioner
Neece clarified that what the college is doing is more academic in nature; that
this would be directed more toward teaching the actual work skills. The
workforce is graying and the available skilled workforce is getting thinner every
year.
12. Economic Incentives - Commercial
energy, tax cuts, not limited to small business
Commissioner Ravin
wanted to include under this category incentives for renewable energy
production. He gave a few ideas for incentives for property owners to take
their property off the grid. This would not be limited to small business.
13. Increasing
City Revenue -
Creative ways to bring revenue to the City so it can provide the services that
would be needed.
Commissioner
Scarpitta stated that the topics mentioned so far took money away from the City
and they should address items that would bring revenue in for the City so it
could provide the services requested and expected.
Councilperson
Wythe referred to the carbon footprint monies that could be used for incentives
for renewable energy in the Climate Action Plan that the City Council put into place.
She gave an example of the airlines collecting these monies and then donating them
for sustainability funding. It needs someone to take ownership and could be
used for sustainability funding.
Commissioner Scarpitta clarified that he wanted to think of fund
raising for the City. He wanted to be specific on how can additional monies be
raised for the City without increasing the costs to the residents. By consensus
the Commission agreed on growing the economy not necessarily the government at
the cost of the residents.
Commissioner Neece felt that addressing the workforce development issue
would grow the economy. There are federal agencies but those monies will dry up
eventually. He further clarified that developing a workforce with living wages,
a very skilled workforce such as computer graphics, programmers, film and
television industry, which he is involved in and has been working on for a
number of years to get the film industry to Alaska; He knows many people would
love to come here, but the work is not here. The film industry would have to
bring the entire work crew with them to film in
Discussion
developed on marketing Homer; developing a business ambassador, being proactive
in seeking companies that are looking to grow or relocate; how to locate these
businesses, how to develop a proposal to use; that the cruise ship business was
very competitive; that the commission should address the obvious problems that
are keeping businesses away; the Central Business District does not have much
to offer; Use “Open for Business”; the downtown appearance has a blighted look,
not prosperous; a strong outreach is needed. There is a sample video of a
winter promotion of Homer that was done for the Chamber; it was agreed to add
this to the agenda.
Planning
Technician Engebretsen reviewed some of the big “ticket” items from the list
and broke them down into tasks under Reputation as follows:
1. City pays the Chamber for promotion.
What do they use to promote Homer?
2. Repairing Homer’s reputation – what do
you need to do.
Commissioner
Neece commented that marketing something like a resume containing specific
criteria regarding zoning, building, licensing, and the climate action plan. A
suggestion was offered to have planning come to a meeting and give a
presentation regarding what is required to start and build a business within City
limits. Commissioner Scarpitta mentioned that funding was a problem for making
and distributing a
Commissioner
Ravin redirected the discussion to the Port and Harbor. He stated that the
A
marketing plan for the port and harbor would be the first step. The EDC should
work with the Port & Harbor Commission on developing this marketing plan.
Councilperson
Wythe recommended that the Commission accept the offer to have Planning talk to
them about the requirements for starting a business in Homer. The number one
starting place should be looking at these requirements and making
recommendations.
Commissioner
Hogan observed that one of the biggest hurdles of human nature that will have
to be overcome is that people do not like change, and this is where Homer gets
the anti-development impression.
Commissioner
Scarpitta agreed but emphasized that they need to be sensitive to the people
who do not want change.
Councilperson
Wythe gave a brief synopsis on the Community Economic Development Strategy.
Homer has developed over the last 20 years into an extremely large population
of seniors and retirees; tourism is growing and the college is looking at
expansion. She believes that you will get where you want to go even if it takes
a period of time. Homer has arrived to what was considered a goal 20 years ago
and it is not well received. Tourism is only part time; Homer needs twelve
months of sustainable economy. She noted that Homer High was one of the
strongest schools in
It was
noted that there are some things such as the blight on Pioneer that the
Commission has no control over. However, the fact that the Port is losing money
was shocking and should not be happening. It was suggested that each
commissioner spend the time outside the meetings and list all the things they
want to do and decide what type of business you want to be and go through the
actual exercise by calling and asking what is needed to establish a business in
Seward, Kenai, and Homer.
Joint
worksessions such as the following were recommended once action plan is flushed
out:
a. Transportation – Public Transportation.
to the Spit and Anchor Point
b. Port & Harbor – Marketing, Freight,
Cruise Lines, and Commercial Fishing
Planning
Technician Engebretsen introduced the next topic - Commissioner and Staff Responsibilities
– What do you want from staff to help be a more effective commission?
Commissioner
Hogan did not want to overburden staff. He responded that City Manager Wrede
stated that 50% of staff time was devoted to Committees and Commissions.
Planning Technician Engebretsen stated that when Commissioners do some research
on their own it is a big help. She has also found that Commissions appearing
monthly before Council works very well. Councilperson Wythe agreed and that written
reports in the packet is great. The current Council is reading the packets and
asking questions. The more Council sees and hears you the more you get. Chair Hogan recommended a rotating monthly
schedule for each Commissioner to attend Council meetings. The Commissioners agreed
this was a good idea.
It was
determined during discussion before each Commissioner would perform a mock up
to determine what kind of business they would start and cover a different field
such as a cruise line for the Harbor. Then report on the results and determine
what needs to be done to make those problems go away. They agreed to schedule
this after the strategic plan was completed.
Discussion
ensued regarding the agenda for July and August meetings. Planning Technician
Engebretsen explained that even though there was two weeks before the next
meeting, staff only has one week to prepare.
There was
no further discussion.
NEW
BUSINESS
A. Food Tax
RAVIN/SCARPITTA
– MOVED TO BRING TO THE FLOOR FOR DISCUSSION.
There was
no discussion.
VOTE.
YES. NON-OBJECTION. UNANIMOUS CONSENT.
Motion
carried.
Commissioner
Ravin recommended a that local agriculture should be tax exempt, for the city
but it could extend to the borough; he stated that any incentives that could
encourage the production of food such as eggs, potatoes, halibut, etc. There
was brief discussion on the possibility that merchants at the Farmer’s Market
were collecting sales tax on produce being sold; the majority of halibut is
sold wholesale; established businesses such as Two Sisters are collecting sales
tax. If its food and produced locally should be tax exempt.
Commissioner
Scarpitta did not believe that taxes paid monthly on a food purchases was a
killer where property taxes are running hundreds each month. He does not
believe that food sales tax is as onerous. If the Borough exempts then Homer
should too.
Councilperson
Wythe noted that the City cannot tax what the Borough does not tax. Collecting
sales tax at different rates could make paperwork difficult for the small
business person. She acknowledged that the report made from the auditor at the
last council meeting may sound like the City has spare funds however; the City
has obligations that it had not met for years, now in the last three years they
made a five year plan to bring their base funding to a responsible level. The
sales tax was increased to specifically fund the Library bonds and the PERS
increases. This is somewhat funded by the federal government but that will not
last forever. Incremental taxation is better than no taxes now and a big tax
later. The reserves funds are used to cover unexpected increases in budgets
such as this years fuel costs. The Council did review and discuss a proposed
sales tax exemption on food but did not pass it since the Borough is reviewing
a proposal along the same lines. Also the only revenue for the general fund is
the sales tax and property tax. If the food exemption is implemented the City
stands to lose $1.6 million dollars in revenue.
Commissioner
Erickson recommended the City put the supply of Fuel out to bid. Petro is the current
supplier. There was a brief discourse on what other expenses are not being put
out to bid that the City could to garner the best price.
She proceeded to address the property assessments and related
information received from Milli Martin. What she is questioning is if anyone is
going back over the assessments. To make sure properties were assessed
correctly. Councilperson Wythe commented on the assessment regulations and the
new state regulations.
Commissioner Scarpitta related his personal experience on appealing his
assessment. When told the comparable properties used were from Kenai and
Soldotna, then that a visual inspection would be needed, he pulled his appeal.
Chair Hogan requested this to be on the July agenda.
Commissioner
Neece recommended the commission create a Tax Policy Committee to address tax
issues in general. Commissioner Scarpitta agreed a good idea.
Commissioner
Ravin acknowledged that if the $1.6 million was exempted it would be spent
within the community. The city is losing money, it must be recognized that a
higher sales tax is detrimental to business longevity; He respects
Councilperson Wythe view on having a healthy general fund. He is requesting the
Commission to recommend City Council exempt non-prepared food sales from the 4.5%;
he wants to encourage the City to be pro-active. It would be responsible
government. He believes that it is a regressive tax that impacts the low
wage/income earner. Councilperson Wythe explained that unless it was proposed
substantially different than what was presented previously, the issue could not
be presented before council for 6 months.
Commissioner
Scarpitta observed that if the $1.6 million dollars was taken away the City
still has to pay their bills. How will they cover those bills? The residents
still require request and demand services. Some services are provided area wide
not just residents. When the sales tax was approved the property tax mil rate
was lower 1 mil. The residents outside city limits do not get this benefit of
property tax reduction.
Commissioner
Erickson proceeded to ask what is the City doing to promote goodwill, where is
the City cutting back? The discussion evolved into what the expenses of the
City are; the recommendations from the Climate Action Plan.
Councilperson
Wythe acknowledged that although not the proper venue she was going to address
some concerns brought up regarding the
Discussion
evolved to cover the beginning of budget season; what budget requests are
immediately eliminated such as personnel; incorporating City Council minutes
regarding budget discussions in the meeting packets; increasing revenue
opportunities at the Port for the dock; the potential lack of infrastructure
essentials due to no volunteers, ex. fire department, which would discourage a
new business.
Chair
Hogan would like to see Food Tax on the next agenda under pending business. Commissioner
Ravin agreed. The commission agreed to schedule a worksession before the
Commissioner
Scarpitta would like to see the sound system for the Council Chambers on the
agenda. Commissioner Ravin agreed and responded that his father attended the
last council meeting and the people in the back could not hear. Commissioner
Neece stated it was a simple fix that would be less than $500.00.
Chair
Hogan directed the commission back to the agenda.
NEECE/ERICKSON
– MOVED TO POSTPONE TO THE JULY MEETING ITEMS B
Councilperson
Wythe recommended a few changes and additions to the bylaws. Determined that it
would be better to come back with a new draft.
Commissioner
Erickson called for the question.
VOTE.
YES. NON-OBJECTION. UNAINIMOUS CONSENT.
Motion
carried.
B. Bylaws
Review and Amendment
C. Student
Intern
INFORMATIONAL
MATERIALS (for discussion only)
There
were none.
COMMENTS
OF THE AUDIENCE
None.
COMMENTS
OF THE
Special
Projects Coordinator apologized for missing the first two meetings, she will be
at the next two meetings, but will miss the October meeting.
Deputy City Clerk Krause commented that it was good very interesting
until they started leaving the topic but agreed it was within the discussion.
COMMENTS
OF THE COUNCIL MEMBER
Councilperson
Wythe stated she was really excited seeing the work done tonight; that it really
awesome first place to start in the original commission; this commission has
the ability to change the face of Homer; it will demand diligence from the
Commissioners; she is looking forward to supporting the commission and may not
always agree with their decisions; she will bring them forward and promote
changes to resolutions; she looks forward to keeping them in front of Council.
She will miss the next meeting.
COMMENTS
OF THE CHAIR
Chair
Hogan appreciates everyone’s time and efforts and is very mindful of the
staff’s time too. He believes that this will be a great group and looks forward
to working with them. He will chair in a more relaxed form and requests that
everyone be civil to each other.
COMMENTS
OF THE COMMISSION MEMBERS
Commissioner
Neece commented that he agreed with Chair Hogan.
Commissioner
Erickson commented she had spoken enough.
Commissioner
Ravin stated that out of a five year plan he would like to see the City maximize
the use of the port. He would like to see businesses such Crowley Marine,
Commissioner
Scarpitta – He would like to address the sound system on the next agenda, items
not being sent out to bid, and play the
ADJOURNMENT
There being no further business to come before the Commission, Chair
Hogan adjourned the meeting at
RENEE
KRAUSE, DEPUTY
APPROVED: