We tip our hat to existing businesses, too

We tip our hat to existing businesses, too

By David C. Olson

A newsletter from the Minnesota Department of Employment and Economic Development declared “jobs” as “the big winner” this legislative session: “DEED is thrilled that the Minnesota Legislature approved (and Gov. Dayton signed) more than $95 million in economic development funding along with tax incentives that will help businesses expand and create jobs.”

From my perspective, the Legislature’s first priority should be to make our business climate more competitive for all businesses. I find it troubling that while providing incentives to a few specific businesses, this same Legislature raised taxes and fees by $2.3 billion, much of which will fall on businesses statewide.

The Minnesota Chamber of Commerce and our statewide network of local partners work tirelessly to strengthen the business environment for all types and sizes of companies no matter where they are located. That is what our team of lobbyists did at the Capitol every day during the 2013 session.  That work is also at the heart of Grow Minnesota!, our distinctive private-sector initiative dedicated to helping businesses stay and expand in our communities.

Grow Minnesota! recently celebrated its 10th anniversary. With 60 local chamber partners, our 10-year partnership has resulted in face-to-face conversations with well over 7,000 Minnesota companies and provided direct assistance to more than 1,000 businesses. Our retention efforts have protected close to 15,000 jobs. Our portfolio of company profiles identifies business challenges and trends that help shape and support the Minnesota Chamber’s public policy agenda at the Capitol.

We welcome all partners, private and public, in developing Minnesota’s economy. It takes hard work. We won’t be successful unless we pay as much, or even more, attention to existing businesses as we do to offering incentives to companies to relocate or expand in Minnesota. Bottom-line dividends depend on checking in regularly with local business owners and managers.

Legislative leaders are quick to promote this year’s economic develop0ment package as an investment in the economy and Minnesota’s future – but we remind policy-makers to not lose sight of the cumulative impact of their actions on the businesses that already line our main streets, commercial districts and industrial parks.

Business retention is painstaking work. However, these last 10 years have proven at least two things: First, that it is critical to the development of our economy and job growth; and, second, that the work of programs like Grow Minnesota! is more important than ever.  We need to reach more Minnesota businesses – always thanking them for being here and helping them stay and grow in Minnesota. 

David Olson is president of the Minnesota Chamber of Commerce – www.mnchamber.com.

County Board Notes-July 23, 2013

A part of the OACCT's Public Policy efforts for 2013 is for volunteers from the Public Policy committee attend both City and County meetings and report back on items that are of interest/concern to business.

-Board appointed Ed Nelson as Steele County Trails Administrator

-Public hearing was held with regard to some county street projects, primarily the turning back of CR111 to a gravel road, there were multiple questions on the wisdom of this change.   City of Medford, Blooming Prairie and Owatonna presented information to be considered in their 5 yr. CIP.  The city of Owatonna has multiple projects/repairs they would like considered should funding become available.  

-Board noted they have 7 open employee postions

-Board discussed plan for HR dept. and ultimately an HR director

-Awarded contracts to paint the Hope School, Community Center HVAC project, basement/dryland training at Four Seasons and replace chairs at the Four Seasons

-The board was presented with informationa from the Association of MN Counties citing the passage of wheelage taxes by all surrounding counties and they approved one as well, with little discussion.

-County  awarded contract for Engineering for CSAH 12 in Medford for redesign

-Awarded contract for Dane Rd. bridge approach repair

-County planning to take over maintenance of county parking lots including plowing, striping and seal coating

-Board approved the Hold Harmless agreement for the Chamber for Arts in the Park

-County Attorney highlighted the positive BCA report citing our low crime rate and high case clearance rate

Task Force requests two more construction alternatives

Press Release:
Owatonna – The Steele County Public Works Service Center Task Force has asked the project’s architect
and construction manager to bring back two additional plans for review at its next meeting, Aug. 27.
The group met July 18 and saw two other revised plans: a plan estimating complete project cost of $10.1
million and one coming in at $8.3 million, both down from the $13.6 million plan of 2012.

The private citizen members continued to press for a design that costs $7 million – a project cost they
say is palatable to the community – as well as a design that simplifies the building to a square box.
The task force has been meeting since January to identify a satisfying solution to current and long-term
highway department facility needs. In fall 2012, the County Board tabled a vote to build a $13 million
new facility on Crane Creek Road/old Highway 14 after the project ran into criticism from business and
private citizens questioning the cost and scope of the project. The county has been leasing temporary
facilities since the September 2010 flood left its 40-year-home on Hoffman Drive uninhabitable.
Earlier this summer, the task force recommended building new on its Crane Creek property, when cost
estimates on remodeling two other existing buildings proved inefficient.

Present at Thursday’s meeting were private citizens Margaret Michaletz, Jim Schafer, Steve Kath, Matt
Durand and Tony Louris, county commissioners Bruce Kubicek and James “Corky” Ebeling, city council
member Greg Schultz, county and city staff representatives and Deb Brandwick from Oertel Architects
and Scott Quiring of Amcon Construction Management.

The group is asking for a $7 million project mainly to see if it’s even feasible, as most task force
members seemed to agree that the $8 million proposal would not satisfy county needs. For Kath, the
project should have a budget and the highway department has to figure out what it can get for the
money, a position he has championed at every meeting. Commissioner and task force chair Kubicek saw
it a different way: “What do we do when we end up with a building we can’t use? By giving us a number,
you’re telling us what to put in it.”

A scaled-back project would mean the highway department would have to give up what staff perceives
as operational efficiencies, including office space sufficient to house all staff, Kubicek and county
engineer Anita Benson said.

Other options in the less expensive models include: trading out preformed concrete walls for metal in
the vehicle storage area; eliminating the veteran’s service parking, reducing maintenance areas,
eliminating emergency management and sheriff’s department storage, reducing office space and other
parking. The entire developed site would go from 28 acres down to 17 and would move the sand and
salt storage closer to Colonial Manor, creating more noise for residents.
Members also discussed that the new site should replace the functions of the Hoffman Drive location, at
least. “$7 million might not get us there,” Louris added.

The task force will review two new plans in August and may forward a building recommendation to the
county board at that time.

In related news, county Administrator Tom Shea updated the task force on a request for FEMA money.
The county’s paperwork is in Washington, D.C., where it awaits a positive or negative ruling on its
second appeal phase. Shea has asked Gov. Mark Dayton, U.S. Sens. Amy Klobuchar and Al Franken and
Congressman Tim Walz to help speed up the process. The county cannot start on any project until it has
FEMA’s yes or no, Shea noted.

The one year delay has increased the cost of the project by more than $1 million so far, according to
Shea. He emphasized the importance of getting a decision from FEMA as soon as possible. “The
compounding effect of lease payments, inefficient operations at the temporary facility, increased
interest rates, and inflation of construction costs for a new building are increasing daily,” Shea said.
So completing the task force work and moving on to final design phase is very important, Kubicek said.
The county wants to move dirt as soon as it hears FEMA’s decision, he added.

City Council Notes-July 16, 2013

A part of the OACCT's Public Policy efforts for 2013 is for volunteers from the Public Policy committee attend both City and County meetings and report back on items that are of interest/concern to business.

-Mayor recognized and awarded plaques for a successful Senior Games event

-Presentation and motion to award Bonds for various street, sewer and equipment purchase/projects. The rates and terms are favorable and we have maintained a Aa2 rating w/ Moodys

-We were given a legislative update which highlighted the expected stability of LGA, but there will be necessary fine tuning of the formula in the future

-Consent agenda passed without issue

-The Steele Co. Safe and Drug Free Coalition presented us with proposed changes to our policy regarding smoking in city parks.   This proposal was met with concerns over no real enforcement, inconsistency in policy application and signage concerns.  There was a motion passed to send it back to Park & Rec. to review and make some changes for possible future consideration.

-Personnel policy was updated to eliminate a program to purchase computers for city employees and allow them to reimburse the city with payments withheld from their paychecks.  This change was suggested by our auditor as it is uses public funds to essentially offer no interest loans to employees and is not a prudent use of public funds.

-There was also a resolution to bring some needed road repairs to the county's attention as they finalize their 5 year capital improvement plan.  These are county maintained roads within the city.

City Council Notes-July 2, 2013

A part of the OACCT's Public Policy efforts for 2013 is for volunteers from the Public Policy committee attend both City and County meetings and report back on items that are of interest/concern to business.

6:00 pm Study Session
City of Owatonna discussed options for the increase in LGA funds, an additional $794881.00 is expected from the State of Minnesota.  The general consensus of the Council and Mayor was to use the funds for a conservative one time type of use.  Some ideas exchanged were seal coating and overlay of streets, update the GIS system, roof at West Hills, and library carpets.   Pay for elected officials was not discussed at this meeting.

7:00 pm Council meeting

Hearing for special assessments tabled until further notice

Settlement agreement with DuPont for damaged trees at golf course was presented by City Attorney Mark Walbran.  The City to get $1,858,293.00 from DuPont, plus DuPont will remove trees at DuPont’s cost.

2nd Reading for Food vending and Food vending vehicles ordinance change.

2nd Reading on sewer rate increase.  It is estimated that the rate increase will generate an additional one million dollars per year for the sewer fund.  Per the City memo “Sanitary sewer rates have not increased since 2004….The Sewer fund has been losing money the past few years and additional investment is needed in the collection system.  The proposed rate increase will cover the expected losses and initiate additional expenditure for rehabilitation of the collection system.

Meeting adjourned 7:25