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HomeMy WebLinkAbout2004-09-09 ACE MINUTES• • • I. ALLIANCE FOR COMMERCE IN ENGLEWOOD September 9, 2004 CALL TO ORDER The regular meeting of the Alliance for Commerce in Englewood (ACE) was called to order by Acting Chair Panetta in the City Council Conference Room of the Englewood Civic Center. Members present: Members absent: Staff: Chamber Liaison : Guests : Lonborg, McDermott, Vasilas, Panetta, Schalk, Cook Wolosyn, Council Liaison Guinther (excused absence) Darren Hollingsworth , Economic Development Coordinator Cristin Penning Councilman James K. Woodward Frank Gryglewicz , Director of Administrative Services II. APPROVAL OF MINUTES August 12, 2004 Acting Chair Panetta stated that the Minutes of August 12 , 2004 were to be considered for ap- proval . McDermott moved: Vasilas seconded: The Minutes of August 12, 2004 be approved as written . The motion carried . III. ENGLEWOOD BUSINESS ENVIROMENT UPDATE Frank Gryglewicz -"State of the City" Mr. Hollingsworth introduced Mr. Gryglewicz, director of Administrative Services for the City of Englewood. He stated that Mr. Gryglewicz has been asked to present the financial status of the City to the ACE membership . Mr. Gryglewicz presented the financial status of the City of Englewood. Issues cited by Mr. Gryglewicz include: • 78 % of the general fund is funded by "tax" revenues. • 62 % of the total budget has been funded by "sales tax" revenues. • From 1999 -2003 the City realized only a 2 % revenue growth. • From 1999 -2004 the City experienced $7 .2 million increase in expenditures : • 73 % of the City budget is related to personnel costs. o Salaries o Health Care o Pension funds H:\GROU P\BOARDS\AC E\Minutes\2 004\ACE 09 -09-04 .doc 1 • • • Mr. Schalk entered the meeting during the above discussion, and took his chair with the Com- mission. Mr. Gryglewicz noted that revenues have risen slightly in 2004, partly from the opening of Pi- rates Cove; the City also bills back for services provided to Enterprise Funds such as the Water and Sewer Service funds . Mr. Gryglewicz noted that in 2003, two revenue issues were on the ballot, both of which were soundly defeated: a head tax, and a property tax increase. Mr. Gry- glewicz pointed out that the City has operated at a "deficit" since 2001, and that the 2004 deficit is anticipated to be slightly in excess of $1 million dollars; in 2005, revenues are projected to be flat, possibly down, and the deficit is projected to be $1.8 million as the budget is presently pro- posed. He stated that, in his opinion, the City Council will not allow the deficit operation to con- tinue in 2005 , and some hard decisions will have to be made on programs, services, and person- nel issues. Mr. Gryglewicz pointed out that the acquisition and remodeling of the Civic Center was financed by "Certificates of Participation" which are paid off at $1.5 million per year. Revenues from the bill-back for services to the Utilities Department may decrease because water sales are down - this has been a wetter year, water customers are practicing water conservation, and have Xeris- caped their yards to require less water. Mr. Cook entered the meeting at 11 :50 a.m . and took his chair with the Commission. Mr. Gryglewic z briefly discussed negotiations with the employee unions ; settlement has been reached with one union, and negotiations with two are at impasse; depending on the outcome, an additional $400 ,000 may be added to the 2005 expenditures for personnel services. Mr. Grygle- wicz discussed required funding for old-hire pensions . In response to an inquiry, Mr. Grygle- wicz noted that new employees are required to contribute to a 401K fund , rather than a defined benefit pension fund. He also cited fund "reserves" that the City is required to maintain -in his opinion the reserve should , ide a lly , be in the neighborhood of 16 %, but the City has reduced the reserve target to 10 %. Mr. Gryglewicz also discussed a provision under the TABOR that re- quires a 3 % set-aside for "emergency" use and restrictions which apply to usage of these funds . Mr. Gryglewicz pointed out known expenses that will increase in 2005 : • Gasoline for vehicles • Utilities (heating and electricity) for City buildings • Health premiums (anticipated 9 .2 % increase) • Pension Plan funding • General Salary increase (1 % for non-union personnel) • Insurance premiums • Person a l leave payout has been re-instated in the 2005 budget Mr. Gryglewicz then cited cost-saving steps the City has taken during 2003 and 2004: • Hiring Freeze • No pay-out of unused personal le a ve • Elimination of 35 full and part-time positions (equal 29.5 fte) • Retention of fleet vehicles for longer period of time • One-time transfer of funds to bol s ter the General Fund H :\GRO UP\BOARDS \ACE\Minutes\2004\AC E 09-09-04 .doc 2 • • • Ms. Lonborg asked if other jurisdictions are being studied to determine how they are addressing revenue/budget constraints. Mr. Gryglewicz stated that most jurisdictions are in similar financial constraints -Denver, Aurora, Lakewood. The only jurisdiction he knew of that had a "stable" revenue stream was Cherry Hills Village, and their revenues come from property taxes -not sales taxes. Mr. Hollingsworth noted that there are several projects underway in Englewood that will add to the revenue stream in the future, such as the General Iron Works site redevelopment, the Denver Seminary redevelopment, and the Sports Authority continues to serve as an attraction for other businesses wanting to locate in Englewood . Mr. Schalk commented that GIW and Denver Semi- nary will not contribute to revenues for at least five years even if redevelopment efforts began immediate! y. Mr. Cook asked what the revenue shortfall is anticipated to be. Mr. Gryglewicz stated that the 2004 shortfall is anticipated to be $1 million , and the 2005 shortfall is anticipated to be $1.8 mil- lion. However, the City has been operating in a deficit mode since 2001. Mr. Cook expressed the opinion that the business community has a civic responsibility, and sug- gested that the businessmen step up to the plate to provide assistance to the City. Mr. Panetta rec alled past discussions regarding "running the City as one would run a business ", and the hard decisions that have to be made regarding cut-backs to meet expenses. Mr. Schalk stated that what the City is experiencing every businessman in the City is also experiencing. He stated that he and his business are "tapped out"; he stated it is vital to keep promoting the City , but "it is time to get the butcher knife out". He stated that to expect the business community to do any more in paying more taxes will be very tough . Ms. Lonborg suggested looking beyond Colorado -what are jurisdictions in other states doing to meet revenue shortfalls. Ms. Wolosyn noted that she has done some research and each state has its own tax constraints , plus Colorado has TABOR which places more constraints on taxing abilities than other states experience. Brief discussion ensued. Mr. Schalk reiterated the need to keep up promotional efforts , but to "chop services". Councilman Woodward agreed with the need to increase promotional efforts to bring in more businesses to Englewood. Mr. Gryglewicz was thanked for his presentation. IV. MEMBER INTRODUCTIONS Ms. Julie Lonborg was welcomed to the ACE commission . All ACE members and staff intro- duced themselves . V. ELECTION OF OFFICERS Chair Vice-Chair H:\GRO UP\B OARDS \ACE\Minutes\2004\AC E 09-09-04 .d oc 3 • Mr. Panetta turned control of the meeting to Mr. Hollingsworth for this portion. Mr . Hollingsworth stated that Mr. Panetta (former Chair) was reappointed in June, and Mr. Rees (Vice-Chair) did not apply for reappointment. The Commission needs to elect officers for this ensuing year. Mr. Hollingsworth declared nominations open for the position of Chair and Vice- Chair. Schalk moved: McDermott seconded: Mr. Panetta be nominated as Chair of ACE. No further nominations were submitted for Chair. Vasilas moved: Cook seconded: The nominations be closed, and Mr. Panetta be elected Chair of ACE. The motion carried. Vasilas moved: Cook seconded: Ms . McDermott be nominated as Vice-Chair of ACE. No further nominations were submitted for Vice-Chair. Ms. McDermott was elected Vice -Chair of ACE. • Staff was asked to research and bring ACE Bylaws to the next meeting of ACE. • VI. NEW MEMBER ORIENTATION Mr. Hollingsworth provided a brief oral up-date of past ACE activities and of a project work program . Past activities include : • Business forums • Development of an Economic Development Strategy • Supported elimination of the "admissions tax" • Supported defeat of a proposed "head tax" Mr. Panetta commented that the ACE also advised the Englewood Small Business Development Corporation to revise loan guidelines to promote greater availability of their loans and services. ACE also considered concerns regarding the Building Division, and the need for a more user- friendly atmosphere for those needing the services of that Department. He then commented that Englewood also needs to develop a greater variety of housing -the City needs to develop some "up-scale" housing. Mr. Hollingsworth stated that the Work Program for 2004/2005 includes: • Image -Branding -Advertising • Creative Signage -Policy Committee • Business Educational Topics -Retail Business Workshop • Business Recognition Program H:\GRO UP\BOARDS \ACE\Minutes\2 004\AC E 09-09-04 .doc 4 • • • • Visitation Program • Permit Tracking/GIS/Website The "Creative Sign Code" was discussed briefly. Mr. Hollingsworth suggested a need to define "creative signage ". Mr. Cook suggested that there are businesses that could work with the City and specific businesses to design graphics for a "creative" sign . Ms. Lonborg agreed. Ms. McDermott suggested providing businesses interested in new signage with a list of approved sign companies/contractors that specialize in signs. Members discussed "Englewood business helping Englewood business" possibilities . Mr. Hollingsworth stated that he would like to work with the Chamber of Commerce to develop and sponsor business educational workshops . Ms. Penning indicated the Chamber will work with Mr. Hollingsworth to develop such a project. Ms. Lonborg asked if there is a profile of Englewood businesses , and is the visitation team ask- ing the businesses what they need. Mr. Hollingsworth stated that the City does not have a "good" data base on the business community, but during the visit ation program we will be talk- ing with members of the business community. He noted that needs may differ depending on the geographic location of a specific business. Mr. Vasilas suggested that Ms . Lonborg might check with the Chamber of Commerce regarding their business directory -this would be a profile be- ginning . Mr. Hollingsworth noted that the work program is subject to change , and to budget constraints . Mr. Panetta stated that it is good to have aggressive goals . Discussion ensued regarding cooperation among businesses and with the City. Mr. Cook reiter- ated a question he asked previously : What makes Englewood unique? He noted that in the "community newsletter" there is no community news -nothing, for instance , about scout troops , or other community activities. He commented on the support other communities exhibit for ac- tivities within their borders, such as the "Welcome Wagon Week" in Littleton. He did acknowl- edge that support in Littleton seemed down for the most recent Welcome celebration. Ms. Pen- ning suggested that membership in the Chamber of Commerce is important , and that the Cham- ber does have several community/business oriented activities. Mr. Schalk stated that Englewood doesn't have a "Taste of Colorado", or a Cherry Creek Arts Festival -some activity needs to be "bigger than just Englewood" to encourage people to visit and shop. He emphasized that the City needs to be involved in the development, planning, and sponsorship of this activity. Mr. Cook suggested the need for frequent activities -"hammer them every week" with information on a new activity, and have the activity be free -no admis- sion charged . Ms. Lonborg suggested the need to determine the "image" Englewood wants to project, and to develop events to promote this image . H:\GRO UP\BOARDS\ACE\Minutes\2 004\ACE 09-09 -04 .doc 5 • • • Mr. Panetta commented that sidewalk sales are OK, but they are a little passe; what is going to put Englewood on the map? An annual event that will bring people to Englewood needs to be developed. Brief discussion ensued . VII. ACE VISITATION PROGRAM Mr. Vasilas stated that he and Mr. Cook visited five businesses on August 26th ; he s tated the re- sponse was excellent, and positive. Two businesses indicated a problem with homeless people - one was reported living on the roof of the businesses, another business expressed concern at the "mess" created in the alley by homeless individuals . Discus sion ensued. Ms . McDermott asked what follow-up has been done on these five visits , and the concerns or complaints they made . Mr. Hollingsworth stated that staff has created a data-base to log the vis- its; however, there has been no follow-up regarding the homeless/transient issue. Ms. Lonborg suggested that one way to build credibility with the business community is to resolve the "small" issues -even one at a time -rather than letting concerns build up before they are addressed. Mr. Vasilas noted that the owner or m anager of Anderson Vacuums mentioned the advertising support that used to be forthcoming during Holiday seasons. He suggested that the Chamber could work with the business community regarding the advertising issue, and that now would be a good time of the year to get a business "name " and the product/service of that business before the public eye . Mr. Hollingsworth stated that additional visits to the business community are planned for the week of September 13th . VIII. COMMENTS AND EVENTS Mr. Vasilas stated that he attended a recent meeting of the O ld Town Englewood merchants as- sociation; they want to have a car show in 2005 -sometime in July of that year, pro b ably. They would like to get permission from the City to block off the parking lot in the 3400 block of South Lincoln for this car show, and they want to have a side-walk sale in conjunction with the car show. Mr. Vasilas stated that police support will be needed, and the City will be asked to pro- vide insurance for the event. Mr. Vasilas stated that he realizes that this request will have to re- ceive approval from City Council , and the merchants group needs to have a response from the City by November 1, 2004 . It is estimated that the cost of the event will be in the neighborhood of $1,300 . Ms. Wolosyn stated that the merchants group needs to appear before City Council to request their assistance. She also suggested that if ACE endorses or supports the proposed activity, Council would take this into consideration. Discussion ensued regarding the location of the car show . Sites on the west side of South Broadway were suggested , but Mr. Vasilas stated that the merchants group wants to keep the car show as close to Broadway as possible. They will also investigate possible usage of the Masonic Temple parking lot , as well as the Swedish Medical Center Rehab Center parking lot, if needed. H:\GRO UP\BO ARDS \ACE\Minutes\2004\ACE 09 -09 -04 .doc 6 • The possibility of parking some of the show cars on the sidewalks, or along Broadway was dis- cussed. Mr. Hollingsworth advised that there could be a safety issue regarding parking vehicles on the sidewalks, and he doubted this would be allowed. Closure of the 3400 block of South Broadway was also briefly discussed. Mr. Hollingsworth again noted that closure of South Broadway may not be approved . Mr. Schalk commented that "it would be great to do it -it could create chaos, but it would create interest, and create an event". The possibility of closing both the 3300 and 3400 blocks for this "show and sidewalk sale" event was briefly discussed. Mr. Panetta suggested that if ACE members have questions or suggestions to submit them to Mr. Vasilas, and this issue be included as an "action item" on the next agenda. IX. STAFF COMMENTS Mr. Hollingsworth stated that the City will receive an award recognizing excellence in Economic Development in Colorado for our Catalyst Program. This program has provided assistance to a variety of businesses on fac;ade improvements, and has leveraged private sector investment at a ratio of 1 :4. This luncheon and award ceremon y will be September 17 in Fort Collins ; if any ACE member wishes to attend, please notify staff and a luncheon reservation will be made and paid for by the City. Mr. Hollingsworth noted a memorandum regarding an update on the former Fratelli 's Restaurant at 1200 East Hampden Avenue . • No further business was brought before the ACE . The meeting was adjourned at 1: 12 p .m. Agenda Items : • ACE Bylaws -re: Terms • Classic Car Show -Ted Vasilas • Chamber Activities -presentation by Cristin Penning • Report on Swedish Medical Center lOOth Anniversary Activities -Julie Lonborg Action Items • State of the City presentation • Election of ACE Officers • 2004-2005 Work Program • Business Visitation Program Report • H:\GRO UP\BOARDS\ACE\Minutes\2004\ACE 09-09-04 .doc 7