This transcript reflects the Oakdale Economic Development Commission (EDC) meeting held on October 4, 2023. [00:00] **Jeff Bates (Acting Chair):** Right, I'm taking over for Bill tonight. Um, I think he said Max has ten years for his insurance business? That's right, yeah. That's great. Okay. So, and thank you for the help with the script here. Welcome to the October 4th, 2023, Oakdale Economic Development Commission regular meeting. Um, Bill's not here, but would someone like to lead us in the Pledge of Allegiance? [00:25] **Commissioners:** I pledge allegiance to the flag of the United States of America, and to the Republic for which it stands, one Nation under God, indivisible, with liberty and justice for all. [00:40] **Jeff Bates:** All right, we're going to do the roll call now. We know Bill is not here. I am here, Jeff Bates. Bob Bullen? **Bob Bullen:** Here. **Jeff Bates:** Frank Orelo? **Frank Orelo:** Here. **Jeff Bates:** Stacy? **Stacy:** Here. **Jeff Bates:** Gary's not here. Bob Stiglet? **Bob Stiglet:** Here, yep. **Jeff Bates:** Aaron? **Aaron:** Here. **Jeff Bates:** Pang? **Pang:** Here. **Jeff Bates:** Tony? **Tony:** Here. [01:05] **Jeff Bates:** All right. Um, so did everybody get a chance to look at the meeting minutes? Any discussion, comments, or corrections? That is from the August 2nd meeting. No changes? No comments? Anybody like to make a motion to approve the meeting minutes? **Frank Orelo:** Make a motion. **Stacy:** Second. **Jeff Bates:** All in favor say aye. **Commissioners:** Aye. **Jeff Bates:** Any opposed? All right, motion carries. Um, all right, first on the next is the old business, so I'll turn that over to Max. [01:35] **Max Hall (Staff):** Sure thing. And before we get into the Business Retention Expansion and Attraction (BREA) program, I do want to acknowledge that we have two new members tonight who were recently appointed to the Economic Development Commission: Pang and Tony. As staff, we're really excited to have both members aboard, and we feel their business experience will bring some great perspectives on the EDC. Pang and Tony, feel free—if only if you would like—to briefly introduce yourselves and anything that you're looking forward to on the commission. Go ahead, I'm putting Pang on the spot. [02:10] **Pang:** Um, so I'm Pang. I think I met a few of you guys, or maybe everybody, I can't remember. But I'm excited. I'm excited to get to meet everybody and see what's going on and help in any way that I can. [02:25] **Tony:** I'm Tony Jenkins. Again, some of you know me. I'm a local banker at CCF Bank, commercial lending. I've been in the area banking for over 10 years. I'm a Hudson resident, but certainly anywhere I'm involved—from River Falls, part of my church, I work in Oakdale—so I want to be part of anything in the community that I'm in, where I live and work. So I felt that it was important to do this, and I'm excited to join you guys and provide some input and see what we can do. [02:55] **Jeff Bates:** Welcome. **Max Hall:** Yeah, all right, great. So with that, we can move on to the Business Retention Expansion and Attraction program, BREA for short. The report presentation and discussion from the first year. So I'm excited to present to the commission tonight the findings of the BREA report from our first year with the program, 2022 to 2023. This report was prepared by Kim O'Brien of the St. Paul Chamber, who's done a great job compiling the findings of each business visit and translating them into actionable items. The report is included in tonight's packet. Additionally, I have a presentation prepared by Kim O'Brien that summarizes many of the report's most important points. Tonight, I'll give that presentation and open the room for discussion about the report, its findings, and implications for the next round of business retention visits. For new members, the city began its business retention program last year with the goal of visiting local businesses to build relationships and better understand business needs. Visits are typically conducted by a mix of City staff, EDC members, chamber staff, and Oakdale elected officials. And two quick notes before the presentation: First, I want to acknowledge that the BREA program has received recognition for its efforts. Our city actually won the "Best Business Retention Program" at the Leaders in Local Government Awards a few weeks ago. Um, so if you want to turn to the memo regarding this item in your packet, you can see a picture there of some of our city representatives accepting that. Additionally, the city is currently in the process of developing an additional contract with the St. Paul Area Chamber to help assist us in administering and scheduling the next round of BREA visits. We'll keep you updated as we move forward towards the next cycle and get that contract finalized. So with that, we can kind of dive into the report and its findings. And just as a reminder, we couldn't do this without the Oakdale Area Chamber of Commerce and the St. Paul Area Chamber; both were really important in the scheduling and then administration of the program and collaboration with City staff. The original timeline for the BREA program is displayed on the screen. Currently, we're in the last stage, presenting findings. While we had initially planned to present findings in April, it took us a bit longer to schedule some of the meetings and get to this point. As staff, we're very happy with both the BREA process and the final report. As a quick reminder and an introduction to new members, we had four primary goals with the BREA program: expressing appreciation to businesses and building relationships; connecting businesses with resources to help them grow; understanding real estate and workforce needs for employers of Oakdale; and understanding how our policies impact the business climate of Oakdale. This presentation was designed in mind with a general audience, so some of this material is likely very familiar, especially for those who attended the meetings. But the findings should be new to us, or at least compiled in a form where we can really see the patterns emerge between all the visits. As stated earlier, each visit was attended by a mix of elected officials, City staff members, chamber staff, and EDC Commissioners. Generally, the businesses we visited can be broken down into six categories as Kim organized them: COVID-impacted (hotels and restaurants especially); woman-owned; BIPOC (Black, Indigenous, and people of color-owned businesses); legacy employers (places that have existed in Oakdale for quite a long time); the top employment sectors (which in this round included grocery stores and banking); and last, geographic diversity, making sure we visit businesses in all areas of the city. [07:15] **Max Hall:** Here we just have a quick map of all of the 18 visits we conducted over the last year. Note that quite a few are concentrated in the southern third, though we did get up to the northern aspect to visit Park Tool and a few others. During each visit, we followed a business retention best practice of asking business owners selected survey questions to maintain fairness and improve data collection. However, we made an effort to try to keep the conversation natural and dynamic to prevent the feeling of just filling out a questionnaire. Generally, questions focused on business details, facilities information, workforce issues, investment plans, transportation, and general feelings of what it's like to be a business in Oakdale. For takeaways: most businesses we visited were retailers, restaurants, or service-based. The oldest business we visited was Twin Cities Hardware, which began in St. Paul in 1938 before moving to Oakdale. The oldest that's been in Oakdale for its full length was Carol Matthew Center for Children, which has been a part of Oakdale since 1970. Wow. And the newest was High Five Sports, which opened in 2022. Hy-Vee was the largest employer with 425 employees, and we also visited small businesses, the smallest being Hearing of America at two employees. [08:45] **Max Hall:** COVID-related habit changes, technology changes, material and labor costs, and changing consumer preferences were the largest factors impacting businesses. COVID had a wide range of impacts; it created growth for some, while some restaurants barely made it through. Regarding facilities and workforce: most businesses didn't plan to expand their physical footprint, but wanted to invest in technology and equipment. All employees expressed that they were having troubles with hiring, especially for lower-skilled positions. Regarding transportation and housing: businesses felt Oakdale’s transportation served them well, though construction was a negative. Most employees drive personal vehicles, but businesses felt new transit investments would provide new customers and employees. Most employees live within 10 miles of Oakdale. Favorite aspects of Oakdale included: accessibility, location, small-town feel, affordability, quality of Public Safety, and growth. For improvements: they suggested transit/pedestrian improvements and better communication with the city. Some suggested helping small businesses with marketing and keeping a "common sense" approach to policy. Finally, Kim's recommendations include: continuing the program but reducing the number of visits to 12 instead of 18, as scheduling is getting trickier. With that, I’m happy to open the room for discussion. [11:55] **Jeff Bates:** So thinking back on the last year, how difficult was it to schedule all these things? Because my impression was as it got near the end, it became more difficult. [12:10] **Max Hall:** I think that’s accurate. I’m going off about six months here with the city. Generally, those first few where there was a connection with the EDC or the chamber were easier. Those last ones, a lot of our smaller businesses are very busy and might not have responded the first time. [12:35] **Jeff Bates:** Do you see that continuing—being more difficult to reach out and make that connection? [12:45] **Max Hall:** I think it likely will continue. Luckily, a lot of our scheduling is done in partnership with the St. Paul Area Chamber. With 12 visits over 12 months, ideally, that gives us more space, though it remains a concern. [13:05] **Jeff Bates:** What kind of followup would be planned for these businesses? I remember that was one of our discussion points early on. [13:15] **Max Hall:** Once the contract is signed, we'll have the St. Paul Chamber come and speak with the EDC to do some visioning for the next round. In terms of general followup, staff have been taking advantage of the contact list. If they asked for assistance with permitting or resources, we’ve made sure to follow up on that. [13:40] **Jeff Bates:** Do you plan to have a different set of businesses in round two? [13:50] **Max Hall:** That would be my general inclination—finding as many new ones as we can while catching up with some larger employers. [14:05] **Jeff Bates:** This report exceeds what I thought was going to come out of this. It’s excellent data. One item mentioned was employment. Is there anything the community can do to help businesses, or do you lay that off to the chamber? [14:25] **Max Hall:** That’s a tricky one. We connect them with resources like Minnesota CareerForce or the Washington County Workforce Center. It’s a complex issue to solve. [14:50] **Jeff Bates:** What about the recommendation to grow partnerships with local schools? Any hints on what that would look like? [15:00] **Max Hall:** I imagine we’ll try to be proactive with the school district and technical colleges to connect the workforce better. School districts often operate separately from municipal government. [15:25] **Frank Orelo:** At our chamber meetings, the school representative always talks about trying to get kids into the trades. Stacy, weren't you going to say something? [15:40] **Stacy:** School districts have these career pathway programs now. I've personally had a couple interns work through Carol Matthew’s. They come in for their first hour; it helps me with staffing and gives them experience with children. [16:15] **Jeff Bates:** Do you find there's a problem making those connections between students and the workplace? [16:25] **Stacy:** I haven't heard that it's a problem. We’ve had a relationship through the chamber with the school district. I think banking is one of the areas where they've been very successful. [16:50] **Jeff Bates:** I wonder what role the city could play in assisting with that. Also, when you say "local schools," do you mean just Oakdale or surrounding communities like Mahtomedi or Woodbury? [17:20] **Max Hall:** That’s a topic we can take to the city council. We are surrounded by quite a few smaller cities, so it raises the question of which pools to draw from. [17:40] **Tony:** Can I just go back on one thing? You said the initial ones were easier to reach—were those the 61% that were chamber members? And did some join the chamber after the meeting? [18:05] **Max Hall:** Yes, we did get quite a few non-chamber businesses to join. And yes, the easiest ones were usually those already in contact with Kim O'Brien. [18:40] **Jeff Bates:** That partnership with the chamber is like having a whole other department you can tap into. [18:55] **Max Hall:** Do any Commissioners have ideas for the next round's priorities? [19:10] **Bob Bullen:** I like the variety of industries. You get a bigger bang for the buck with big employers, but I wouldn’t rule out the small ones. [19:35] **Stacy:** We had talked about having the school district as a BREA visit because they are such a large employer. [19:55] **Bob Bullen:** I’d like to recommend Central Bark. They are a new employer, right next to Menards. It seems the business is going well. [20:30] **Aaron:** My idea would be to gather common trends and offer education or training sessions. We could leverage the experts here or at the chamber. [21:05] **Frank Orelo:** I just got a question on Hy-Vee. You said 400 some employees, but did you say 1,200 earlier? [21:15] **Max Hall:** I apologize if I said 1,200. It’s around 425. [21:30] **Tony:** How is the message sent when reaching out? Are there businesses that say no or that they're too busy? [21:50] **Max Hall:** Those last few I was involved in, it was mostly that they were busy. I'll look into the "nos" more. [22:10] **Stacy:** Kim mentioned reaching out to Best Buy. It was hard to get the right person to say yes because of the corporate structure. The larger the company, the harder it was. [22:35] **Bob Bullen:** Some takeaways that stand out are technology evolving and transit. 61% thought transit was important. I know there's a group looking at transportation in Oakdale for older people. [23:45] **Jeff Bates:** Is there a place for the city to help with wage competition? It might not be something the city can take care of, but we can provide the data and trends we see. [24:50] **Stacy:** Maybe that’s a good connection through DEED or the workforce center. [25:05] **Jeff Bates:** Who put this together? It looks like a cast of a thousand. [25:15] **Max Hall:** While Andy and I provided input, the report was almost entirely prepared by Kim O'Brien. She did a phenomenal job. [25:35] **Jeff Bates:** All right, next is new business. [25:40] **Max Hall:** Next up, the EDC draft work plan review. Advisory bodies like ours are expected to create annual work plans. I've attached a draft for 2024. We've added implementation of the BREA report and new redevelopment plans. We need to finalize this for the appreciation dinner with City Council, tentatively scheduled for February 7, 2024. [27:00] **Jeff Bates:** I think it’s helpful to look at the tasks—advise, participate, assist. Each commissioner can look at what they can specifically do. [27:35] **Aaron:** Could we bring ideas back for the next meeting? [27:45] **Max Hall:** Certainly. If we don’t hold a meeting next month, feel free to email me. [28:50] **Jeff Bates:** I think overall we’re doing a good job with infrastructure and business attraction—from Willowbrook to the Helmo station. The Tanner's Lake parcel is probably our biggest challenge. [29:30] **Max Hall:** We've signed an exclusive rights agreement with a developer for Tanner's Lake. They are refining the proposal now. [30:15] **Jeff Bates:** All right, move on to the MCAR Quarter 2 update. [30:20] **Max Hall:** This data is from the MN Commercial Realtors Association. In the office market, we're seeing region-wide slowdown and climbing vacancy rates. However, our "Northeast" region (which includes Oakdale) has lower vacancy rates than many other areas. In the industrial market, vacancy is up slightly to 3.9%, but absorption remains positive. [33:10] **Jeff Bates:** What would be a "good" target vacancy rate? [33:20] **Max Hall:** It varies based on perspective. I'll keep that in mind for future data. [33:45] **Aaron:** We're still in unprecedented times from the COVID spillover. Eventually, we'll go back to where we were, but with more hybrid options. [34:15] **Pang:** I’m wondering if the vacancy levels are lower here because we offer smaller office spaces? [34:35] **Max Hall:** I'll look into that. It does suggest our spaces are "right-sized" for the current market. [35:10] **Tony:** You can tell a common theme: where lease rates are low, vacancy is low. Business owners are looking for the bank for their buck instead of paying top dollar downtown. [36:00] **Frank Orelo:** I heard on NPR that some companies are forcing people back at least three days a week. [36:30] **Max Hall:** Next item: for the last couple years, we've attended the MN Commercial Real Estate Expo. Last year we promoted Tanner's Lake. This year, staff are considering promoting the need for a brewery. There are only six breweries in Washington County, and five are in one city (Stillwater). We want to promote Oakdale as an "untapped market." [37:35] **Frank Orelo:** What happened to the idea over by Home Furniture? [37:45] **Max Hall:** There were setbacks including an old ordinance banning distilling (which we repealed) and state regulations regarding food service. The relationship is still positive, but those specific plans fell through. [39:05] **Jeff Bates:** You should promote the retail segment of Forefront for a brewery. With Willowbrook coming strong, you'll have a huge population right at the doorstep. [40:40] **Frank Orelo:** What is that four-story building going in at Hadley and 40th? [40:55] **Max Hall:** That is part of Willowbrook. [41:05] **Tony:** Those are market-rate apartments. The townhomes behind Forefront are higher cost, while that big building will be more affordable one and two-bedroom units. [42:15] **Jeff Bates:** All right, commissioner updates. Frank? [42:25] **Frank Orelo:** Does the city have any "juice" with the railroad? The crossings at Hadley and Century are a disaster. There are actual holes. Other than that, we have a chamber meeting tomorrow. [43:40] **Stacy:** The Dueling Piano show at Oak Marsh is Friday night. It’s a fundraiser for Carol Matthew’s. [44:10] **Tony:** Is a grocery store still going up by Forefront? And what is that big building by Target? [44:20] **Max Hall:** We received a submission for a "National Grocery Store" at Forefront. The building by Target is the "Oakdale Marketplace" market-rate apartments. [45:10] **Jeff Bates:** I’ll be speaking at a St. Paul Area Chamber virtual event tomorrow morning on recruiting and retention. [46:15] **Max Hall (Community Development Update):** The Glenbrook small area plan was adopted. The bike and pedestrian plan is nearly complete. Construction started on "Oakdale Commons," a 168-unit senior building behind Hy-Vee. We also approved a new Valvoline in Bergen Plaza. [47:50] **Kari Moore (Council Member):** Good evening, Commissioners. Thank you for your work. Pang and Tony, welcome. The Council approved the sale of THC-infused drinks in liquor stores but passed an ordinance prohibiting smoking cannabis in public. Summerfest went well. We are also working on the 2024 budget and levy. [49:15] **Tony:** Is there a timeline for the new Public Works building? [49:30] **Kari Moore:** We just selected some finishes. Completion is likely 2025. [50:00] **Frank Orelo:** Any movement on the Titan Bar? [50:10] **Kari Moore:** They are remodeling and a new business will move in. [50:35] **Jeff Bates:** We need a motion to adjourn. **Bob Bullen:** Motion. **Aaron:** Second. **Jeff Bates:** All in favor? **Commissioners:** Aye. **Jeff Bates:** Motion carried.