HomeMy WebLinkAbout2003-11-13 ACE MINUTES•
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I.
ALLIANCE FOR COMMERCE IN ENGLEWOOD
November 13, 2003
CALL TO ORDER
The Alliance for Commerce in Englewood (ACE) members convened at 11 :30 a.m . in the
City Council Conference Room . Business Development Specialist Hollingsworth stated that
Chairman Panetta will be a few minutes late, and had asked that the meeting proceed
without him until his arrival.
Members present:
Members absent:
Staff present:
Chamber Liaison:
Guest:
Ashenfelter, McDermott, Rees , Schalk, Guinther (arrived late) and Pa -
netta (arrived late )
Vasilas, Alternate member
Cook
Bob Simpson, Director of Community Development
Darren Hollingsworth, Business Development Specialist
John Voboril, Planner I
Cristin Ackerly, Executive Director
Olga Wolosyn, City Council Member
II. APPROVAL OF MINUTES
October 9, 2003
Mr. Hollingsworth asked if members wished to consider approval of the Minutes at this
time.
McDermott moved:
Ashenfelter seconded: The Minutes of October 9, 2003 be approved as written.
The motion carried .
Ms. Guinther and Mr. Visalas entered the meeting and took their seats with the members.
111. ACTIVITY REPORT
Mr. Hollingsworth distributed an Activity Report to members, and reviewed highlights of
this report. Progress is continuing on tenant finish for the British Pub at the CityCenter, and
a local comedy club is still negotiating for space at the Englewood Market Place. Mr.
Hollingsworth reported that 90 businesses hav e filed for tax credits in the Enterprise Zone
area . The South Broadway Plan is being revised to reflect input garnered during public
meetings held in October. Twelve businesses have completed fac;ade and signage im-
provements through th e Catalyst Program in 2003 , and others are still in progress.
Mr. Hollingsworth noted that the City and Chamber of Commerce will jointly host a "busi-
ness appreciation/awards" celebration at the Gothic Theatre on January 29th . Mr.
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Hollingsworth stated a nominating committee will consider businesses and business indi-
viduals for the awards portion of the celebration, and that ACE membership has been asked
to delegate a member to serve on the nominating committee. Mr. Hollingsworth reported
there will be various categories to be considered for awards, and asked if there were volun -
teers to serve on the nominating committee. Ms. Kathy Ashenfelter volunteered to repre-
sent ACE on the nominating committee.
Mr. Hollingsworth referenced the Community Development "N ewsflash " -a bi-monthly
publication highlighting activities and project updates within the Department.
Ms. Wolosyn inquired about the Balance Shoe store . Mr. Hollingsworth reported that the
opening date is targeted for February, 2004. The property at 3139 South Broadway is be-
ing redone; the retail part of the operation will be on the first floor, and corporate offices
will be located on the second floor. This business is relocating to Englewood from the
Cherry Creek Mall.
IV. ECONOMIC DEVELOPMENT STRATEGY
Mr. Hollingsworth led discussion on the proposed Economic Development Strategy. This is
a five to seven year broad-based work program focused on business activities and devel-
opment. The goals and objectives were set forth in the Comprehensive Plan , and the
strategies are fleshed out and action items are addressed in this element. Mr.
Hollingsworth asked for consideration of Goal 1, Objective 1-1 , Continue to facilitate
communication between local businesses, City departments, and City Council. Mr.
Schalk asked how the information contained in the newsletters and other forms of commu-
nication are transmitted. Mr. Hollingsworth stated that the business fax is sent to over 750
Englewood businesses. Mr. Schalk asked about sending the information via e-mail. Mr.
Hollingsworth discussed the lack of an e-mail data-base for Englewood businesses. Discus-
sion ensued on development of an e-mail data-base and maintenance/updating of the data-
base.
Mr. Panetta and Mr. Simpson entered the meeting, and took their seats with the members.
Ms. McDermott asked if the City has regular press releases to the Englewood Herald. She
noted that in addition to the business community, the general citizenry is interested in busi-
ness activities in Englewood, and we need to bring them into the loop. Mr. Hollingsworth
stated that Assistant City Manager Flaherty has assumed the Public Relations duties for the
City, and that it is· his understanding that there is a regular flow of communication to the
Englewood Herald.
Mr. Hollingsworth then directed discussion to the following strategy: Develop an en-
hanced web-based information resource network for existing local businesses providing
technical assistance for business planning and problem solving. Mr. Hollingsworth stated
that the City is actively pursing up-date of the City's web-page, and will be selecting a con -
sultant to assist in this up-date. Mr. Schalk discussed the possibility of including links to
business web-pages through the City's web-page. He pointed out that if someone inter-
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ested in possible location of a business in Englewood could access the En g lewood web-
page and thereby link to other businesses to determine the composition of the business
community, it would be a great marketing tool. He further pointed out that this would be a
quick way to build the e-mail data base -the businesses would really support something
like this and would want to participate.
Mr. Simpson stated that the City wants to take a pro-active approach so the business com-
munity will have a larger presence on the web page. Mr. Schalk suggested that the web
page should be designed so each business could log in to up-date their individual business
page; the business links through the City web page would have all the businesses working
together, and would be a great advertising avenue.
Mr. Vasilas inquired regarding financing the web page and updating the information -he
noted that web page development and updating can be expensive. He emphasized the
need to have someone with the expertise to work on the web page.
Mr. Simpson reaffirmed Mr. Hollingsworth's statement that the City is updating our web
page. He stated he understood the importance of the web page linkage to the business
people.
Mr. Vasilas noted that the Chamber did something a couple of years ago regarding their
web page. Ms. McDermott stated that the Chamber web page is "elementary", and while
it has gotten use, development and maintenance of a web page is expensive. Mr. Vasilas
reiterated the need to have the right people to do the right thing .
Mr . Simpson discussed the need to determine what is needed and what is wanted by the
business community. Mr. Simpson further discussed the improvements that have been ac-
complished on the city's electronic systems. He noted that the next step of improvement is
implementation of a permitting system which will be of immense assistance to not only city
staff, but those who have made application for a permit and need to follow it through.
Ms. McDermott stated that it is important to have the forms and procedures on the web
page that can be downloaded, but it is really a two-part issue. She discussed the need to
know how to work with the City, but also the need to know who is in the City. Business-
people need to know how to expand existing businesses, attract new businesses, and to
promote what is located in Englewood. We need to let people know what is located here.
Mr. Panetta noted that in developing a web site, one important thing to consider is capacity
-how many links can be accommodated on the system. Mr. Simpson agreed. He stated
that this will have to be considered.
Mr. Schalk discussed the Gothic Theatre web page, and noted that any band or group that
has played the Gothic has a link on the Theatre web page. He reiterated that such a web
page link for the business community will help generate business, keep people doing busi-
• ness in Englewood, and it isn't as expensive as advertising spots on radio or TV.
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Mr. Hollingsworth then cited Strategy #3: Assist local businesses by establishing and de-
veloping a network of financing resources. Mr. Hollingsworth stated that one source of
assistance, the Englewood Small Business Development Corporation (ESBDC), has not been
too successful making loans in recent months , and may request an opportunity to meet
with ACE to request assistance in getting word out that they can provide financial assis-
tance to businesses. Mr. Simpson suggested the possibility of a "better niche " for the
ESBDC funds if loan requests are not submitted. Mr. Hollingsworth noted that the interest
rate charged by ESBDC is high by toda y's standards (10%), and this may contribute to the
reluctance of business people to seek this assistance. Also, the loan cap is $30,000, and
many businesses need more than this amount.
Ms. Wolosyn asked for an explanation of ESBDC. Mr. Hollingsworth provided the back-
ground of the ESB DC formation: funds were contributed by the City of Englewood, the
Chamber of Commerce, and the now defunct Englewood Downtown Development Au-
thority . A five member board, representing the three contributors, considers applications
made for these funds. One of the caveats for loan is that the applicant must have been de-
nied assistance by the banking industry . Mr. Hollingsworth then discussed the various mar-
keting efforts that ESB DC has undertaken. He noted that there have been a lot of "success"
stories of businesses that ESBDC has assisted in the past, and also noted that ESBDC also
has a number of defaulted loans .
Ms. Guinther suggested that the ESBDC Board take steps to make the loan packages more
attractive to businesses -lower the interest rate as an example. Discussion ensued. Mr .
Rees , past member of ESBDC, stated that the interest rate can be changed, but the Board
has to seek the approval of the Chamber of Commerce and of City Council. He agreed
with Mr. Hollingsworth that at one time, the ESBDC provided assistance to a number of
good businesses.
Mr. Panetta suggested that under the Action Item of "Loan Resources ", the SBA has a "mi-
cro loan program " geared to start-up companies. The program is "high risk /high rate", they
have had good success, but have also had failures. Mr. Hollingsworth stated that he would
investigate this program .
Mr. Schalk questioned the need for the ESBDC program. Mr. Panetta stated that if a loan
application is for a "s mall amount", the banking industry may not be interested in granting
the loan . He pointed out that it takes th e same amount of paper work on the part of the
bank to process a loan for $50,000 as it does for $1 ,000,000 --and the bank would rather
concentrate their resources on the larger loans . The ESBDC can , therefore, provide a fund-
ing resource to those businesses in need of a smaller loan. Mr. Simpson agreed that a lot of
businesses may not need a lot of assistance, but do need some, and the ESBDC could pro-
vide that assistance.
Promotional efforts for ESBDC were further discussed. Mr. Hollingsworth stated that he will
provide members with the ESBDC promotional brochure and additional program informa-
tion at the December meeting .
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Strategy #4, Assist local businesses through investment programs, was then discussed. As -
sistance programs include the Enterprise Zone Tax Credits, and the Catalyst Program. A
proposal includes "business makeovers, and classes ". The "makeovers" could include
physical makeover of the store front, to enhancement and improvement of business prac-
tic es. Mr. Voboril explained that the makeover/class category could include engagement
of a consultant to conduct "classes " on new ideas to upgrade the image of a business, or
new ideas in retail activities. Mr. Simpson stated that the new ideas could be new market-
ing ideas -ways to improve sales, image, user-friendly atmosphere for customers. Mr.
Hollingsworth asked if any member of ACE had experience with consultants on a similar
program . Mr. Panetta stated that the banking chain he works for is in the process of up-
grading their image -exterior and interior, at the present time . The consultant will look at
the banks from the customer point-of-view -what is the impression of the customer from
the exterior of the building; what is the impression of the customer once they step into the
bank, and recommend changes to make the overall bank more attractive to customers .
Mr. Hollingsworth asked the ACE membership if they would be interested in the "class "
idea for businesses . It was the consensus of the membership that classes for the business
community would be a good idea, and should be pursued . Mr. Rees commented that the
list of properties for sale/lease provided b y staff each month indicates a lot of vacancies on
th e Broadway corridor -indicative that "someone has had problems".
Strategy #5, Identify targeted industry groups for proactive recruitment, was discussed.
Mr. Hollingsworth and Mr. Simpson cited several business groups that have been targeted
for recruitment -restaurants, entertainment, and medical for example.
Mr. Schalk commented that there se ems to be a lot of "over-lapping" of goals and action
plans, and suggested that if the business classes are successful , it could address Strategy #5 .
Mr. Panetta asked if the City maintained records of businesses leaving the City, and
whether reasons for leaving are known. This information could be helpful in determining
what the business community is looking for that is not being provided -larger sites, etc.
Mr. Simpson stated that such records are not maintained, and in fact, many times the City is
not made aware of a business departure. Some requirement of notification would need to
be established . Discussion ensued . Ms. McDermott suggested that management compa-
nies might be a source of information on wh y businesses relocate. Mr. Panetta suggested
that the Chamber of Commerce could be a resource for this information, also . Ms. Ackerl y
stated that the Chamber does not track this information.
Mr. Schalk stated use of consultants, as set forth in the Matrix, could provide a lot of infor-
mation -determine what is in Englewood, what is needed, etc. Mr. Schalk suggested that
the City/ ACE /business community could "get a lot of bang for the bucks" on this .
Mr. Voboril pointed out that throughout the Matrix, there is a lot of inter-relation and over-
lappin g information . He emphasized the n eed to know the strengths and weaknesses of
the business community, and how to target activities more .
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• Mr. Hollingsworth then cited Strategy #6, Promote the City of Englewood to potential busi-
ness prospects. He cited marketing materials that have been developed and are in use at
the present time, including a CD Rom and a marketing package that is provided all business
prospects. Mr. Hollingsworth noted that 40 business prospects requested information to
date this year. Ms. McDermott asked how the City evaluated success in recruitment or
securing new business prospects. Mr. Simpson stated that information on new contacts is
tracked, but why businesses chose not to pursue location in Englewood hasn 't been
tracked . Ms. McDermott stated that such information could provide tangible proof of suc-
cess for business recruitment. Brief discussion ensued.
Mr. Panetta noted the time, and suggested the need to proceed on the agenda. He asked
members of ACE if they want to continue review of the ED Strategy in this same manner -
basically line-by-line , or if they want to "condense " the review process. Mr. Vasilas stated
that the ED Strategy is very important, but where do the comments from ACE members go
from these review meetings. He noted, for example, that ACE took no action regarding the
interest rate charged by ESBDC , and suggested that ACE should make recommendations to
the City Council. Regarding the tenants and leasing, he stressed the need to determine
why there is so much activity in some buildings/blocks with tenants moving in and out -
business people and landlords need to be educated . If landlords want to keep their proper-
ties rented, they must be reasonable in the rents charged and other requirements that busi-
ness people have to comply with. He pointed out that prospective businesses are suspi-
cious if they know there has been a lot of activity in a building or block.
• Mr. Simpson stated that the ESBDC membership should come to an ACE meeting to dis-
cuss the issue of interest rates , loan caps, etc.
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Ms. Ashenfelter stated that she felt careful review of the ED Strategy is good, but suggested
that perhaps only a portion of the meeting is devoted to the review and other issues be in-
cluded on the agenda. Ms. Guinther agreed .
Mr. Schalk further discussed the web site update, and asked why ACE members could not
meet with the representatives the City will be meeting with to let them know what the
business community wants, and why ACE members could not look at the proposals .
Ms. Ackerly stated that she supported review of the ED Strategy by each line item.
Mr. Vasilas stated that he felt it would be good to get the same group of people who met
to discuss the Occupational Privilege Tax together to discuss other issues . Mr. Panetta
agreed that the business community seems to come together only when an issue impacts
them.
Mr. Hollingsworth stated that the upcoming business appreciation/awards ceremony
hosted by the Chamber of Commerce and City in late January might be an opportunity to
get the business people together .
Ms. Wolosyn stated that she felt the ED Strategy needs to have careful review.
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Mr. Rees stated that he supported going through the ED Strategy as we have been; how-
ever, he didn't want to spend the next five to six months going through it. Who will hold
whose feet to the fire to make sure these activities are accomplished? He pointed out that
this is a very time-consuming issue.
Mr . Simpson suggested that a time-block be set aside on each agenda for review of the
document, but that other action issues are also included on the agenda. He stated that one
of his big concerns is there are a lot of "priority #1 ". This is a "community project", and we
need to determine how we "all" keep our feet to the fire to get this accomplished.
Mr. Schalk stated that he agreed with all members on the need to provide careful review of
the Strategy, but he also especially agreed with Mr . Rees on the time the review is taking.
He suggested the need for each member to do their "homework" and the review would go
faster. Ms . Wolosyn suggested that possibly the ACE members should concentrate only on
business-related issues. Mr . Simpson stated that this is a possibility, but pointed out that
issues such as "work-force housing" also impact the business community, and all items are
inter-related. Mr. Schalk suggested that ACE concentrate on "A" items, and review the "B "
and "C'' issues at a later date. Brief discussion ensued .
Mr. Voboril stated that he has been working to develop a two-year work program. Does
the membership feel it would be more helpful to review this document rather than the full
ED Strategy. The two-year work program will address only the top priorities . Mr. Rees
stated that the full ED Strategy is the document that will be considered for adoption, so this
is the document we should review, but the review should be accomplished in a timely
manner.
Mr . Panetta asked about the sales tax revenues . Mr. Simpson stated that he did not have
the very latest information , but thought that it is "flat " -the decline has stopped, but reve-
nues are not on the rise.
Mr. Panetta asked that the ESBDC members be asked to attend the next meeting.
The meeting was declared adjourned at 1: 15 p.m .
.}'Gertrude G. Welty, R~cording Secre ;y
Action Items:
1. Investigate SBA micro-loan program
2. Provide ESBDC promotional and program information to ACE members
3. Invite ESBDC members to the ACE meeting in December
December Agenda Items:
1. ESBEC Members -program discussion
2. ED Strategy Review (continuation )
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