Community Planning and Economic Development (CPED) 2018 Mayor - - PowerPoint PPT Presentation

CITY OF MINNEAPOLIS

Community Planning and Economic Development (CPED)

2018 Mayor recommended budget October 5, 2017 Budget Book Pages F115-125

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Department Organizational Chart

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Budget Summary

Program name 2017 adopted 2018 recommended funding Change Item (new dollars) FTEs Select type of funding

General fund Non- general fund General fund Non- general fund General fund Non- general fund Current Additional One time

• 1. Long Range

Planning

$2,265,944 $1,211,783 $2,375,627 $1,236,996 15.72

• 2. Affordable Housing

Development

$4,578,689 $9,753,311 $5,982,926 $8,904,581 $4,000,000 $650,000 17.59 yes

• 3. Homeownership

Support and Development

$1,907,121 $4,646,558 $1,897,932 $7,073,053 $250,000 $1,000,000 11.04 2.00 yes

• 4. Business

Development

$5,686,951 $4,512,467 $5,605,329 $4,400,763 $50,000 $75,000 24.06 Yes no

• 5. Business Licensing

$4,093,098 $222,626 $4,277,655 $215,837 31.37

• 6. Adult Workforce

Development

$1,019,471 $4,719,328 $1,197,855 $5,178,796 $125,000 11.42 yes

• 7. Youth Training and

Development

$1,278,021 $3,399,009 $1,191,099 $3,545,343 7.80

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Budget Summary

Program name 2017 adopted 2018 recommended funding Change Item (new dollars) FTEs Select type of funding

General fund Non- general fund General fund Non- general fund General fund Non- general fund Current Additional One time

• 8. Land Use, Design

and Preservation

$2,845,281 $897,108 $2,963,747 $918,932 25.65

• 9. Development

Services – Customer Service Center

$2,766,344 $143,115 $2,815,164 $138,752 20.41

• 10. Construction Code

Services

$10,407,422 $715,687 $11,221,666 $762,489 74.94

• 11. Transfers and Debt

Service

$35,505,078 $36,141,505

CARS

$1,719,455 $1,719,455

CUT

($60,000) ($60,000)

Total

$36,848,342 $65,726,070 $41,188,455 $68,517,047 $6,034,455 $1,775,000 240.00 2.00

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Core Programs

Program 1

Long Range Planning

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Purpose and Context

Long Range Planning (LRP) is comprised of planning, urban design, public art, historic preservation, and research functions and activities. The division seeks to build new capacity in the area of Civic Technology and Community Engagement. The mission of the Long Range Planning division is to ensure that the City’s strategic goals and objectives are codified in our adopted policies and plans. The LRP team seeks to identify impacts and issues that require proactive planning and interdepartmental coordination, and provide planning expertise to address them and inform policy development. The LRP team is comprised of the City’s most experienced planners and practitioners, and organizes its work geographically into 5 planning sectors as well as by core function.

Services Provided

• Planning delivers products and services in six distinct planning areas: Comprehensive planning, intergovernmental

planning, community planning, thematic planning, transportation planning, and heritage planning (preservation, conservation).

• The role of Urban Design is to contribute professional expertise in architecture, landscape architecture, sustainability,

resilience and graphic visualization to advance the City’s goals shaping a livable and vibrant City.

• The Public Art function actively commissions public art each year through Art in Public Places, and also includes

conservation, maintenance, and consulting activities. APP typically commissions 3-4 new public artworks annually to be integrated into City building projects, infrastructure, transportation planning, and development.

• The Research team informs and contextualizes plans and policies through data stewardship, geographic profiles, trends

tracking, mapping, policy recommendations, and pilot initiatives, internal to CPED and the City as a whole.

• Civic Technology and Community Engagement is focused on data and technology issues in municipal planning. It

supports all four of the division’s functions and this team (along with Research) already serves as a liaison to the City’s Information Technology Department.

Program 1

Long Range Planning

Tanyan Yahi (Dakota, “It’s good you are here”) sidewalk art, Bde Maka Ska Railing Detail John Biggers Seed Project Railing Detail 40TH Street Pedestrian Bridge Purple Raindrop, 26th Avenue North Bikeway/Greenway

Program 1

Long Range Planning

Program 1

Long Range Planning

Goals

Living Well One Minneapolis A Hub of Innovation and Activity Great Places A City that Works X X X X X

Values

Equity Safety Health Vitality Connectedness Growth X X X X X X

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2017 adopted budget 2018 recommended funding FTEs Funding

General Fund Non-General Fund General Fund Non-General Fund Current One-Time (Yes/No)

$2,265,944 $1,211,783 $2,375,627 $1,236,996 15.72

Program 1

Long Range Planning

Performance Indicator: Leverage investments and resources to foster economic development and revitalization in areas of economic disinvestment Long Range Planning will:

• Create asset-based strategic plans, models, and frameworks to revitalize areas of economic

disinvestment to benefit all; position these areas as contributors to regional economic competitiveness strategy

• Work with and serve as a research hub to inform the efforts of the Housing and Economic

Development divisions as CPED shapes new policies and programs to revitalize challenged areas

• Work with the City’s Equity Office to develop a set of blended metrics and indices to more closely

track the City’s progress on growth, equity and sustainability goals established in the comprehensive plan update. Indicators:

• Track investments leveraged in identified CPED opportunity areas
• Track infrastructure investments consistent with adopted plans, strategic frameworks, and/or CPED

capital priorities

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Program 1

Long Range Planning

Performance Indicator: Lead, innovate and drive our city’s regional competitiveness and ensure that traditionally disadvantaged communities are at the center of our work Long Range Planning will:

• Utilize and make available data, technology and software to discern, model, communicate, and contribute

to the competitive advantages of the city and economic region through strategic policies and plans

• Establish plans that enhance livability and provide clarity and assurance to the marketplace for developers

and investors

• Identify opportunities for authentic community engagement that help promote regional competitiveness

Indicators:

• Track and report on economic indicators including unemployment, job growth overall and by industry,

growing and shrinking industries, regional competitive advantage (within national context), industry and labor characteristics, and development trends

• Track indicators that drive talent attraction (livability, affordability, compensation, culture & creativity)
• Track net migration
• Track equity indicators that help drive better, more inclusive solutions

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Program 1

Long Range Planning

Performance Indicator: Plan, design and develop sustainable, healthy, livable and resilient communities Long Range Planning will:

• Advance livability, growth, and sustainability goals through the delivery of planning and urban design

services

• Proactively communicate and collaborate internally and externally to inform and advance goals
• Engage and share information with citizens, staff, stakeholders, partners, and elected officials about

best practices and innovative concepts Indicators:

• Coordinate work with Resilience and Sustainability efforts to ensure complete and livable

neighborhoods

• Track growth and demographics to help drive policy priorities
• Collect and utilize data in conjunction with partners in Public Works and other departments to inform

policy recommendations that address citywide goals

• Developed blended metrics and indices to more closely track the City’s progress on growth, equity,

sustainability and resilience goals established in the comprehensive plan update.

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Access to jobs via car are about 25 times greater than jobs accessible via transit.

By Car By Transit

Program 2

Affordable Housing Development

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Purpose and Context

Housing Development provides financial assistance for the development of affordable housing options for all Minneapolis

• residents. Housing Development promotes the Mayor’s goals of Equity by furthering housing choices for all demographics

and the goal of Grow the City by creating more affordable and market rate housing opportunities.

Services Provided

The Affordable Housing Trust Fund provides gap financing for new construction, stabilization, and rehabilitation of affordable

• housing. The Tax Exempt Housing Bond and Low Income Housing Tax Credit programs are financing tools to assist with the

production and preservation of affordable housing. The Higher Density Corridor Housing Program provides funding for acquiring strategic housing redevelopment properties. Metropolitan Council’s Livable Communities Demonstration Account, Department of Employment and Economic Development (DEED), and Hennepin County environmental pass through grants and housing improvement areas are also administered through this program.

Program 2

Affordable Housing Development

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Commons at Penn Wirth Co-op Grocery Store

Program 2

Affordable Housing Development

Goals

Living Well One Minneapolis A Hub of Innovation and Activity Great Places A City that Works X X X X X

Values

Equity Safety Health Vitality Connectedness Growth X X X X X X

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2017 adopted budget 2018 recommended funding FTEs Funding

General Fund Non-General Fund General Fund Non-General Fund Current One-Time (Yes/No)

$4,578,689 $9,753,311 $5,982,926 $8,904,581 17.59

Program 2 – Change Item #1

Family Housing Initiative

Description

The 2017 Budget included a $1 million appropriation for the Family Housing Initiative, a program created in 2016 to assist with the development of affordable housing for larger families with extremely low incomes (at or below 30% AMI) that are either experiencing homelessness or are at risk of experiencing homelessness. The need for large, extremely affordable family units continues to be critical. The 3-bedroom rental housing vacancy rate for affordable 3 bedroom units is less than 0.5%. Expected outcome: 20 new affordable large family units for extremely low income families.

Status

An award of 2016 Family Housing Initiative funding was made to Minneapolis Public Housing Authority (MPHA) for the Minnehaha Townhomes project. This collaboration between MPHA and Hennepin County will result in 16 new 2- and 3- bedroom units serving extremely low income families with children experiencing homelessness and in the shelter system. This initiative pairs ongoing operating subsidy from MPHA and supportive services provided and/or coordinated by Hennepin County to support families and help them move to greater independence. The City’s Family Housing Initiative award of $800,000 leveraged $3.3 million of additional capital funding from Minnesota Housing, Hennepin County, Metropolitan Council, MPHA and Federal Home Loan Bank. The project is expected to start construction early 2018. The 2017 Family Housing Initiative funding will be awarded through the annual Request for Proposals (RFP) and/or pipeline process for the Affordable Housing Trust Fund. 18

Program 2 – Change Item #1

Family Housing Initiative – Fiscal Impact

19 Is this a Change to an existing business line or program? Yes No Business Line or Program Name: Housing Development – Family Housing Initiative X 2017 Adopted Budget (if an existing program) 2018 Current Funding (if an existing program) Proposed Change (New Funding) FTEs Funding General Fund Non-General Fund General Fund Non-General Fund General Fund Non-General Fund Current Additional (if applicable) One-Time (Yes/No) $1,000,000

• $1,000,000
• NA

NA Yes

Program 2 – Change Item #2

Housing Preservation Strategy

Description

The 2017 Budget included $8.1 million appropriation for the Affordable Housing Trust Fund (AHTF) and $1.5 million for a new Naturally Occurring Affordable Housing (NOAH) preservation strategy (“NOAH Preservation Fund”). The 2018 budget proposal is to expand the City’s housing preservation strategy. The 2017 launch of $1.5 million for the NOAH Preservation Fund was a great first step, but the range of problems faced by Minneapolis tenants requires a broader and multi-pronged strategy. Sales of rental property and associated rent increases continue to occur at an alarming rate. Tenant livability and habitability issues are a growing

• concern. The 2018 Housing Preservation Strategy request of $3.65 million is broken down below. Expected outcomes: 400

Minneapolis renter households receive direct housing support and 3,000 renter households with information and referrals.

• $1.5 million for the NOAH Preservation Fund to assist non-profit buyers acquire market affordable properties in good condition.

(expected outcome: 60-100 units of naturally occurring affordable housing preserved)

• $1.9 million for new pilot: Minneapolis Small and Medium Multifamily (SMMF) Land Banking Pilot Program to address

properties in need of immediate repairs (expected outcome: 100 units of NOAH acquired and stabilized, habitability issues addressed)

• $650,000 one-time set aside in a reserve fund of $9.2 million second mortgage loan fund to finance the acquisition of

properties in need of immediate repairs and/or a long term preservation strategy

• $1.25 million for the for a revolving acquisition and emergency repair fund
• $100,000 to support tenant hotline providing information and referrals on tenant rights and responsibilities (currently funded

from Regulatory Services budget) (expected outcome: 3,000 Minneapolis residents served with information and referrals)

• 150,000 to support expanded non-profit, third party legal services to represent low-income Minneapolis tenants in their efforts

to have landlords maintain rental property in compliance with Minneapolis Housing Code and covenants of habitability (expected outcome: 225 Minneapolis tenant households represented in repair cases in Hennepin County District Court) Relative to the 2017 of $9.6 million, the 2018 AHTF and Housing Preservation Strategy combined request is $10.15 million ($6.5 million for AHTF plus $3.65 million for Housing Preservation Strategy). 20

Program 2 – Change Item #2

Housing Preservation Strategy – Fiscal Impact

21 Is this a Change to an existing business line or program? Yes No Business Line or Program Name: Housing Development – Housing Preservation Strategy X 2017 Adopted Budget (if an existing program) 2018 Current Funding (if an existing program) Proposed Change (New Funding) FTEs Funding General Fund Non-General Fund General Fund Non-General Fund General Fund Non-General Fund Current Additional (if applicable) One-Time (Yes/No) $1,500,000

• $3,000,000

$650,000 1 NA Yes

Program 2

Affordable Housing Development

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Program 3

Homeownership Support & Development

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Purpose and Context

This program is designed to assist with the development and support of ownership housing and the elimination of blight conditions in 1-4 unit dwellings, while returning city-owned vacant parcels to strategic productive use. The overall program strategy is critical to return the housing market to a more healthy condition. The major sub-programs include Minneapolis Homes, Home Ownership Works, Homeownership Opportunity Minneapolis, Homeowner Counseling & Outreach, Homeowner Rehab Program, and Property Management of vacant and boarded properties.

Services Provided

• Foreclosure prevention and counseling
• Homebuyer education and counseling and homeownership capacity services
• Acquisition and disposition of blighted properties to support rehabilitation and/or redevelopment
• Property management
• Affordability assistance to homebuyers
• Development gap assistance to developers, builders and homebuyers
• Home improvement loans to homeowners

Program 3

Homeownership Support & Development

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2701 Oliver Avenue North - Before 2701 Oliver Avenue North - After

Program 3

Homeownership Support & Development

Goals

Living Well One Minneapolis A Hub of Innovation and Activity Great Places A City that Works X X X X X

Values

Equity Safety Health Vitality Connectedness Growth x X X X X X

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2017 adopted budget 2018 recommended funding FTEs Funding

General Fund Non-General Fund General Fund Non-General Fund Current One-Time (Yes/No)

$1,907,121 $4,646,558 $1,897,932 $7,073,053 11.04

Program 3 – Change Item #1

Minneapolis Homes

Description

The City approved a new Infill Development Strategy in 2017 to support the development of more than 400 City-owned vacant lots suitable for 1-4 unit development. This strategy has three main components:

• Development assistance
• Long-term affordability financing
• Homebuyer incentive

The 2017 budget includes $1,000,000 for this strategy ($750,000 ongoing funding and $250,000 one-time funding). Staff successfully leveraged another $850,000 from State and County funds for a total budget of $1,850,000 in 2017. It is estimated that this level of funding will result in 20-30 new homes, at least 10 of which will be long-term affordable (at least 30 years). The City’s vacant lots represent a great opportunity to further City goals of growth in population and tax base, as well as expanding homeownership opportunities, with particular focus on reducing the racial disparity gap in homeownership rates between white people and people of color. Given the extremely low inventory of affordable homes for sale in the City of Minneapolis and the high number of city-owned vacant lots, additional funds are requested for the 2018 budget in the amount of $1,500,000. Expected outcome: 30 new homes, approximately 15 of which will be long-term affordable. 26

Program 3 – Change Item #1

Minneapolis Homes – Fiscal Impact

27 Is this a Change to an existing business line or program? Yes No Business Line or Program Name: Homeownership Support & Development – Minneapolis Homes (combined 2 programs f.k.a. Green Homes North and Infill Housing) X 2017 Adopted Budget (if an existing program) 2018 Current Funding (if an existing program) Proposed Change (New Funding) FTEs Funding General Fund Non-General Fund General Fund Non-General Fund General Fund Non-General Fund Current Additional (if applicable) One-Time (Yes/No) $750,000 $250,000 $500,000 $250,000 $250,000 $500,000 NA NA Yes

Program 3 – Change Item #2

Homeownership Opportunity Minneapolis: Lease to Purchase

Description

The City’s racial disparity in homeownership rates between White and households of color is 35%, one of the highest rates in the

• nation. Homeownership helps to create generational wealth within families, providing long term benefits across generations.

To reduce this homeownership gap, the City launched a homeownership assistance program in 2015: Homeownership Opportunity Minneapolis (HOM). The program provides downpayment assistance to low and moderate income homebuyers. In 2016, the program was expanded to provide grants to non-profit organizations that provide homeownership capacity building. First quarter 2017 results show that 116 households were served by these organizations, 77% of which are households of color. HOM program changes implemented in late 2016 restrict the receipt of downpayment assistance to households that participate in homeownership capacity building services. This requirement better targets scarce city resources to households that need it the most, but are least likely to get in line fast enough for a “first- come, first-serve” process. This proposal expands homeownership capacity building through a lease to purchase program in the amount of $500,000 (affordability and development gap assistance). This program supports households to successfully transition into ownership by

• vercoming credit barriers that have historically impacted people of color in attaining homeownership. Program participants will

be required to work with a qualified non-profit organization to assist in the successful transition from lease to purchase. Outcomes of existing lease to purchase programs:

• Median Income: $43,333
• People of Color Served: 93% (Asian: 3%, Hispanic: 3% and African-American: 87%)
• Previous Residence: North Minneapolis - 73%, South Minneapolis – 10% and Outside Minneapolis – 17%

Expected outcomes: 10 to 15 households will start path to homeownership, 75% of which are likely to be households of color 28

Program 3 – Change Item #2

Homeownership Opportunity Minneapolis: Lease to Purchase – Fiscal Impact

29 Is this a Change to an existing business line or program? Yes No Business Line or Program Name: Homeownership Support & Development – Homeownership Opportunity Minneapolis : Lease to Purchase X 2017 Adopted Budget (if an existing program) 2018 Current Funding (if an existing program) Proposed Change (New Funding) FTEs Funding General Fund Non-General Fund General Fund Non-General Fund General Fund Non-General Fund Current Additional (if applicable) One-Time (Yes/No)

• $500,000

NA NA Yes

Program 3 – Change Item #3

Homeowner Improvement and Lending Programs

Description

City has operated a homeowner improvement program since the 1960s. This program was administered by City staff until 2003, when the decision was made to contract with a third party non-profit organization to deliver program services. The City most recently issued a request for proposals for this service in May of 2016, and received only one response. Since that time, the sole respondent/contractor has determined that in order to continue to provide this service, fees must increase. In addition to administering the City’s homeowner improvement program, this contractor also administers homebuyer assistance programs (downpayment loans). As home values continue to climb, it becomes more challenging for low and moderate income homeowners, particularly seniors living on fixed incomes ,to keep up with necessary repairs. As the City grows, the need for this program will expand. City staff is evaluating service delivery options, including the option of administering this service with City staff. The analysis is expected to be completed at the end of July. In order to preserve either option until the most cost effective option is identified, staff proposes to add 2.0 FTE positions. This addition is expected to be budget neutral or result in cost savings. 30

Program 3 – Change Item #3

Homeowner Improvement and Lending Programs – Fiscal Impact

31 Is this a Change to an existing business line or program? Yes No Business Line or Program Name: Homeownership Support & Development – Homeowner Improvement and Lending Programs X 2017 Adopted Budget (if an existing program) 2018 Current Funding (if an existing program) Proposed Change (New Funding) FTEs Funding General Fund Non-General Fund General Fund Non-General Fund General Fund Non-General Fund Current Additional (if applicable) One-Time (Yes/No) $254,400 $226,970

• 2

No

Program 3

Homeownership Support & Development

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• From 2016-2017, 194 properties were impacted

through Minneapolis homeownership development programs

• 699 properties remain in City of Minneapolis

inventory, representing a significant opportunity to create more housing options

MAP LEGEND

Properties sold for homeownership housing (2016 to Q2 2017): City-owned Land Sale WITH Project Gap Assistance: 49 City-owned Land Sale WITHOUT Project Gap Assistance: 117 NON City-owned Land Sale WITH Project Gap Assistance: 28 City of Minneapolis CPED Property Inventory (Sept 2017): 699

• Single Family: 524
• Multifamily Housing: 97
• Business Development: 78

Program 3

Homeownership Support & Development

33 The City’s homeownership programs are structured to reduce the racial disparity in homeownership rates between white households and households of color.

60.3% 47.1% 20.7% 47.1% 2.6% 0.0% 6.0% 2.9% 10.3% 2.9% HOM 2015 Program HOM 2016 Program

Percentage of Homebuyers Assisted by Race

Hispanic Asian American Indian African American White, Non-Hispanic

• In 2016, the City began making grants to non-

profit organizations that provide financial wellness counseling to low-to-moderate income households. The City provided $100,000 to support 8 organizations with a demonstrated track record of preparing underserved households of color for homeownership.

• The Homeownership Opportunity

Minneapolis (HOM) program offers up to $7,500 in homebuyer assistance for low-to- moderate income households. HOM was revised in 2016 to tie eligibility for homebuyer assistance to participants of homeownership capacity program. This resulted in an increase in service to households of color by 13.3% from 2015 to 2016.

Program 4

Business Development

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Purpose and Context

CPED works with businesses to start, stay and grow in Minneapolis with the objectives of equitable job growth, tax base growth and community vitality.

Services Provided

The Business Development toolbox includes:

• Business loans,
• Business façade grants (Great Streets),
• Business district marketing assistance (Great Streets),
• Business consulting and technical assistance (BTAP),
• Site search assistance,
• Support to community organizations for business recruitment (Great Streets), and
• Commercial real estate development.

Program 4

Business Development

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Program 4

Business Development

Goals

Living Well One Minneapolis A Hub of Innovation and Activity Great Places A City that Works X X X X X

Values

Equity Safety Health Vitality Connectedness Growth X X X X X X

36

2017 adopted budget 2018 recommended funding FTEs Funding

General Fund Non-General Fund General Fund Non-General Fund Current One-Time (Yes/No)

$5,686,951 $4,512,467 $5,605,329 $4,400,763 24.06

Program 4 – Change Item #1

Commercial Land Trust Pilot - Proposal

Description

Holding ownership of real estate property in a land trust has been a relatively common mechanism for preserving the affordability of residential properties. With growing concern about inflating prices and gentrification, there has been a City- community effort to explore the potential of a land trust model for commercial properties to ensure perpetual affordability. In parallel, the City of Lakes Community Land Trust is exploring the organizational feasibility of pursuing commercial projects in addition to its established work on residential properties. To complement these efforts, this one-time funding would allow the City to further study the commercial land trust model, in particular to assess specific properties that may be candidates for land trust ownership and the economics required to implement the model. The intended outcome is to create more information on the potential and the implications of a commercial land trust project. Preserving the affordability of commercial space can help provide greater continuity, success, and diversity of some small businesses, outcomes that align well with City goals and growing the city equitably. 37

Program 4 – Change Item #1

Commercial Land Trust Pilot – Fiscal Impact

38 Is this a Change to an existing business line or program? Yes No Business Line or Program Name: Commercial Land Trust Pilot X 2017 Adopted Budget (if an existing program) 2018 Current Funding (if an existing program) Proposed Change (New Funding) FTEs Funding General Fund Non-General Fund General Fund Non-General Fund General Fund Non-General Fund Current Additional (if applicable) One-Time (Yes/No)

• $50,000

NA NA Yes

Program 4 – Change Item #2

Lake & Nicollet Property Management - Proposal

Description

In late 2015 the City bought 30 Lake Street West, known as the former Supervalue site, as part of the broader redevelopment effort at Lake Street and Nicollet Avenue. An existing lease that required a tenant to manage the property expires at the end

• f June 2017. At that time the City will be fully responsible for the management of the property. Property management

includes building security, landscape maintenance, garbage and graffiti removal, towing, sidewalk shoveling, snowplowing, and management of an existing food truck lease and potential future leases. Existing funds are expected to cover the second half of 2017 expenses, but the property needs additional funds for the first full year of City management in 2018. The intended outcomes are to maintain a safe property that complies with property management expectations, outcomes that align well with City goals and running the City well. 39

Program 4 – Change Item #2

Lake & Nicollet Property Management – Fiscal Impact

40 Is this a Change to an existing business line or program? Yes No Business Line or Program Name: Lake & Nicollet Property Management X 2017 Adopted Budget (if an existing program) 2018 Current Funding (if an existing program) Proposed Change (New Funding) FTEs Funding General Fund Non-General Fund General Fund Non-General Fund General Fund Non-General Fund Current Additional (if applicable) One-Time (Yes/No)

• $75,000

NA NA No

• In 2016, provided financing to 29

small businesses. This supported growth and retention of 454 jobs.

• In 2016, served 413 entrepreneurs

through the Business Technical Assistance Program (B-TAP). B-TAP providers helped a diverse client base create and retain 1,919 jobs; trained 24 participants through the Cooperative Technical Assistance Program (C-TAP) and 36 emerging real estate developers through Small Developers Technical Assistance Program (D-TAP)

• Current real estate development

deals include: Capri Block, Upper Harbor Terminal, 205 Park Ave, 4146 Fremont Ave N, Van White & 2nd Ave N, 695/699 Lowry Ave NE

Busi usiness Dev ss Devel elopmen ent

Performance & Outcome Measures

Great Streets Facade Grants: City Dollars Invested, Private Dollars Leveraged

18% 3% 9% 31% 16% 23%

B-TAP Participant Demographics

African Immigrant American Indian Asian Black/African American Latino/Hispanic White

17% 21% 21% 41%

Borrower Demographics

Men of color Women of color White women White men $261,345 $223,295 $380,285 $225,921 $280,372 $415,045 $681,537 $944,562 $622,597 $827,186 $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 2012 2013 2014 2015 2016 City Dollars Invested Private Dollars Leveraged

Program 5

Business Licensing

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Purpose and Context

Licenses and Consumer Services manages business licensing for liquor establishments and over 200 other types of businesses, and annually licenses 12,000 small businesses and individuals, and hundreds of special events thought each

• year. The License and Consumer Services division continues to seek amendments to the code of ordinances to allow new

and emerging business opportunities. Amendments to allow additional types of mobile vending, breweries, distilleries, sidewalk sales, and more entertainment options in our restaurants are a few examples of how we are growing the City. The overall number of business licenses remains steady, and many areas of commerce continue to grow, prosper, and innovate.

Services Provided

The services provided include assisting business owners through various regulatory processes, license application review, background checks, and on-site facility inspections, problem business management, and the collection of license fees with an annual renewal billing system. License The division also manages the City of Minneapolis false burglar alarm program which endeavors to reduce the number of false police call responses required through education and monetary penalties.

Program 5

Business Licensing

Program 5

Business Licensing

Goals

Living Well One Minneapolis A Hub of Innovation and Activity Great Places A City that Works X X X X X

Values

Equity Safety Health Vitality Connectedness Growth X X X X X X

44

2017 adopted budget 2018 recommended funding FTEs Funding

General Fund Non-General Fund General Fund Non-General Fund Current One-Time (Yes/No)

$4,093,098 $222,626 $4,277,655 $215,837 31.37

Program 5

Business Licensing

45

Liquor License Activity

Applications for beverage alcohol licenses for both on sale liquor and on sale wine licenses are increasing since a variety of significant business made simple ordinance changes were implemented in 2014. Minneapolis bar and restaurant owners are declaring that the recent changes made to liquor regulations have dramatically removed unnecessary burdens allowing the flexibility they need to succeed. In particular, the removal of mandatory food to alcohol sales ratio’s (60/40) rules and live entertainment restrictions have made it easier to do business in Minneapolis. This robust commercial sector is providing a wider variety of dining and entertainment opportunities for our residents and visitors, and has created hundreds of new jobs.

270 303 325 348 370 383 390 363 373 364 362 382 379 426 434 474 44 44 44 44 46 48 45 45 45 47 48 51 53 51 51 53 98 100 111 118 136 160 146 149 146 143 147 158 168 177 194 196 50 100 150 200 250 300 350 400 450 500 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Liquor on sale Liquor off sale Wine on sale

Program 6

Adult Workforce Development

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Purpose and Context

Adult Workforce Development supports Minneapolis residents in gaining employment through multiple programs, including Minneapolis Works and Minneapolis Career Pathways, both of which serve low-income Minneapolis job

• seekers. In addition, the Dislocated Worker Program assists recently laid off adults in returning to the workforce. In

partnership with fifteen community-based agencies, the adult programs provide career counseling, job readiness training, job search assistance, and job placement. Many of the clients served through the program have multiple barriers to employment, including ex-offender status, lack of consistent work history, unstable housing, low educational attainment, and/or chemical dependency.

Services Provided

In 2016, the Adult Workforce Development programs assisted just over 1,500 Minneapolis residents through employment training, career navigation, and job counseling services; where nearly 850 gained employment. Many of the remaining participants continue to use employment services provided by these programs to secure permanent or temporary employment. The average cost per participant in the adult programs is $4,000, including tuition assistance for nearly 40% of all participants. Nearly 70% of all program participants are people of color, all are unemployed, underemployed, and/or low-income.

Program 6

Adult Workforce Development

47

18 More MSP TechHire Students Graduate from Cisco IT Essentials Training Course Cedar Riverside Opportunity Center – Now Open! Creating IT Futures, Minneapolis Urban League and the City of Minneapolis Offer IT Program Conference Supports Employment Counselors’ Work

Program 6

Adult Workforce Development

48

Program 6

Adult Workforce Development

Goals

Living Well One Minneapolis A Hub of Innovation and Activity Great Places A City that Works x X X X X

Values

Equity Safety Health Vitality Connectedness Growth X X X X X X

49

2017 adopted budget 2018 recommended funding FTEs Funding

General Fund Non-General Fund General Fund Non-General Fund Current One-Time (Yes/No)

$1,019,471 $4,719,328 $1,197,855 $5,178,796 11.42

Program 6 – Change Item #1

Cedar Riverside Opportunity Center

The Cedar Riverside Opportunity Center opened in March 2017 as a one-stop destination to provide pathways to employment for Cedar Riverside residents, with a special focus on the needs of East African youth and young adults ages 16-24. The four anchor partners of the Opportunity Center include: Hennepin County, EMERGE Community Development, Minneapolis Community and Technical College, and the City of Minneapolis. The City has supported the Opportunity Center with an FTE dedicated to programming and outreach and with $75,000 in one time operational support in 2017. CPED is requesting $50,000 for ongoing

• perational support. The funding would provide outreach services, intake support, job seeker and training seeker resources, and

employment workshops. Currently, the Opportunity Center is providing services 9am – 5pm Monday through Friday with expanded hours for summer

• 2017. Community demand is high, as many residents of the surrounding neighborhoods take advantage of the emerging program
• fferings. Not surprisingly, the primary demographic has been residents 21 years of age and older, since school is still in session.

We anticipate that youth traffic will increase during the summer months. Employers have also been using the Center with increasing frequency. In the first month of operation nearly 15 employers used the Center for recruiting and outreach activities. While demand by both job/training seekers and employers is high, the shortage of job coaches is causing stress on the Center’s

• resources. In today’s labor market, the interaction between job seeker and employer has changed. In-person interviews usually

require applicants to have completed online applications days or weeks prior to their meeting, access to online skills assessments are often required, and the need for pre-screening of potential interviewees is required. Although these services are being done by existing staff at the Center, they could be better supported and enhanced with a commitment of additional funding by the City towards staff to be hired by the Center’s service provider. This position will be leveraged by other City of Minneapolis program dollars, Hennepin County Workforce Development investment, Hennepin Library services – in the form of two part-time center employees - and Minneapolis Community and Technical College staff support. 50

Program 6 – Change Item #1

Cedar Riverside Opportunity Center – Fiscal Impact

51 Is this a Change to an existing business line or program? Yes No Business Line or Program Name: Adult Workforce Development X 2017 Adopted Budget (if an existing program) 2018 Current Funding (if an existing program) Proposed Change (New Funding) FTEs Funding General Fund Non-General Fund General Fund Non-General Fund General Fund Non-General Fund Current Additional (if applicable) One-Time (Yes/No) $75,000 $50,000 Yes

Program 6 – Change Item #2

Minneapolis Career Pathways

Like all Minnesota employers, the City of Minneapolis will face labor shortages in the coming years. It is crucial that we continue to attract and retain top talent to fill the vacancies created through attrition. This program is an effective, intentional strategy to address workforce needs that can reach diverse communities and create pathways into City of Minneapolis employment. Career Pathways have already proven successful at the City of Minneapolis and Hennepin County, increasing the percentage of diverse employees in City departments including Police, IT, and Public Works. Using this approach, these departments reached out to new communities to recruit, removed artificial barriers to employment, and offered opportunities for trainees to learn and obtain required certifications while on the job. Career Pathways are designed around an identified need in specific, high-demand sectors or occupations, coupled with targeted and deliberate community outreach, skills training, and ongoing support for pathways participants as they navigate training and the application process. In 2017, six departments submitted a total of 11 Career Pathways projects proposals with a total ask of $282,000. All projects were evaluated using agreed-upon criteria and five top projects were selected:

• Convention Center – Hospitality/Event Coordinator Pathway
• Human Resources – Human Resources Associate Pathway
• Regulatory Services – Mid-Career Pathway
• Police – Community Service Officer Pathway - High School Internship Program
• Public Works – Mechanics Pathway

As we share the successes of these 2017 Career Pathways projects, we anticipate more departments will have ideas for creating their own pathway projects. We would like to support additional departments by offering a 2018 Career Pathways fund totaling $75,000 that could fund up to five new career pathways projects. The funding would be used to assist departments in developing and implementing a sustainable career pathways project. This approach will ensure that the pathway has clear goals and is developed to meet the outcomes of reaching new talent and building more diversity in the City’s workforce. Before launching the program, department leaders will have an opportunity to hear about other successful pathways and indicate the interest level of their departments in taking part in this work. Projects would be administered jointly by the City Coordinator’s Office, Human Resources, CPED Employment and Training, and the department creating the new pathway. 52

Program 6 – Change Item #2

Minneapolis Career Pathways – Fiscal Impact

53 Is this a Change to an existing business line or program? Yes No Business Line or Program Name: Minneapolis Career Pathways X 2017 Adopted Budget (if an existing program) 2018 Current Funding (if an existing program) Proposed Change (New Funding) FTEs Funding General Fund Non-General Fund General Fund Non-General Fund General Fund Non-General Fund Current Additional (if applicable) One-Time (Yes/No) $100,000 $75,000 Yes

54

Program 6

Adult Workforce Development

Program 7

Youth Training and Development

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Purpose and Context

The City of Minneapolis Youth Programs aim to create a strong future workforce by reducing youth unemployment and racial employment disparities. Youth programs provide employment for low-income Minneapolis youth, ages 14-24, are comprised

• f two distinct but well linked programs; the STEP-UP Program and the Minneapolis Youth Works. Both programs are

designed to give Minneapolis youth - specifically those from communities of color, low-income families, and youth with barriers to employment - the tools to find their place within the workforce.

Services Provided

• 1. STEP-UP, the most recognized Minneapolis youth program, serves close to 2,000 Minneapolis youth every summer,

connecting them to real and valuable summer work experiences. STEP-UP interns receive critical work readiness training prior to being placed in a summer job. Through STEP-UP, youth learn good work habits, earn wages, and gain experience while providing valuable services to local businesses. Augmenting the summer job experience is the opportunity to attend camp, participate in workshops, and earn high school credit via classroom training.

• 2. Minneapolis Youth Works provides over 1,000 youth - all of whom have multiple barriers, including homelessness, high

school dropouts, juvenile criminal records, etc. - with year round stabilization programming, including employment placement services. This program increases youths’ long-term employability by enhancing educational, occupational, and leadership skills.

Program 7

Youth Training and Development

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STEP-UP Interns Get a High Tech Jump Start in Silicon Valley STEP-UP Wraps Up Another Successful Summer at End of Summer Celebration Minneapolis Teen Job and Opportunity Fair Preps Teen Job Seekers BUILD Leaders Program Holds Graduation Ceremonies

Program 7

Youth Training and Development

57

Program 7

Youth Training and Development

Goals

Living Well One Minneapolis A Hub of Innovation and Activity Great Places A City that Works X X X X X

Values

Equity Safety Health Vitality Connectedness Growth X X X X X X

58

2017 adopted budget 2018 recommended funding FTEs Funding

General Fund Non-General Fund General Fund Non-General Fund Current One-Time (Yes/No)

$1,278,021 $3,399,009 $1,191,099 $3,545,343 7.80

59

Program 7

Youth Training and Development

Program 8

Land Use, Design and Preservation, Zoning Administration/Enforcement

60

Purpose and Context

The Land Use, Design, Preservation and Zoning department guides development as required by law, helping residents and property owners invest in the City in a way that aligns with the City’s comprehensive plan and development regulations.

Services Provided

• Managing, reviewing, and enforcing land use, zoning, preservation, and environmental review applications
• Staff and administer public processes, including public meetings of the City Planning Commission, Heritage Preservation

Commission and Zoning Board of Adjustment

• Guide ongoing regulatory reform affecting land use and development
• Perform administrative reviews and preservation permits at the customer service center

61

Program 8

Land Use, Design and Preservation, Zoning Administration/Enforcement

Program 8

Land Use, Design and Preservation, Zoning Administration/Enforcement

Goals

Living Well One Minneapolis A Hub of Innovation and Activity Great Places A City that Works

X X X X X

Values

Equity Safety Health Vitality Connectedness Growth X X X X X X

62

2017 adopted budget 2018 recommended funding FTEs Funding

General Fund Non-General Fund General Fund Non-General Fund Current One-Time (Yes/No)

$2,845,281 $897,108 $2,963,747 $918,932 25.65

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• 64 Board and Commission meetings (2016) (2017 YTD 46)
• 148 new 1-4 unit dwellings reviewed (2016) (2017 YTD 111)
• 277 Certificate of no change (2016)
• 41 Accessory Dwelling units approved (2016) (2017 YTD 30)
• 43 Certificate of Appropriateness reviewed (2016) (2017 YTD 21)
• 371 Zoning Letters (2016) (2017 YTD 230)
• 930 Sign Permits (2016) (2017 YTD 625)
• 80 Telecom reviews (includes 17 just for the Super Bowl)
• 45 Administratively approved Garages (2016) (2017 YTD 39)

Program 8

Land Use, Design and Preservation, Zoning Administration/Enforcement

• 930 Sign permits issued (2016) (2017 YTD 625)
• 13 zoning code text amendments adopted (2016)
• 63 Site plan reviews approved (2016)
• 66 Conditional use permits approved (2016)
• 26 Rezoning approved (2016)
• 39 Major projects reviewed (2016)
• 20 Major projects reviewed (1st, 2nd QTR 2017)

64

Program 8

Land Use, Design and Preservation, Zoning Administration/Enforcement

(continued)

Program 9

Development Services - Customer Service Center

65

Purpose and Context

The Customer Service Center serves as the front door and service center for the City’s consolidated development activities and focuses on consistent, streamlined customer service. It ensures high quality development while requiring that building construction and rehabilitation projects meet the City’s standards in terms of safety, livability and health and environmental sensitivity.

Services Provided

The Customer Service Center functions as the development hub for residents, contractors and businesses in one location for convenience and efficiency. The Customer Service Center reviews and issues building permits, partner department permits for Housing rental licenses and Public Works critical parking permits. Business licenses and pet licenses may also be obtained at the center.

66

Program 9

Development Services - Customer Service Center

Program 9

Development Services Customer Service Center

Goals

Living Well One Minneapolis A Hub of Innovation and Activity Great Places A City that Works X X X X X

Values

Equity Safety Health Vitality Connectedness Growth X X X X X X

67

2017 adopted budget 2018 recommended funding FTEs Funding

General Fund Non-General Fund General Fund Non-General Fund Current One-Time (Yes/No)

$2,766,344 $143,115 $2,815,164 $138,752 20.41

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14,626 7,828 8,436 4,657 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 Permit counter Plan review/Programs Zoning & LUDP DC I & II

2016 COUNTER VISITS

16,205 8,923 8,340 5,431 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 Permit counter Plan review/Programs Zoning & LUDP DC I & II

2015 COUNTER VISITS

Program 9

Development Services - Customer Service Center

Program 10

Construction Code Services

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Purpose and Context

Construction Code Services (CCS) consists of the three business lines of Construction Plan Review, Construction Inspections, and Programs. The goal of the business is the fair and comprehensive application of applicable city ordinances. Public safety in the built environment is one of the primary aspects of our goals.

Services Provided

Plan Review accepts all applications for building, elevator, mechanical, and plumbing work that require a plan review and a permit to perform the work. Plans are reviewed for compliance with building code requirements and permits are issued. Inspections performs all required inspections for building, elevator, mechanical, and plumbing work covered by issued permits. It also responds to customer questions/complaints regarding construction projects. Programs administers requirements for elevator registration and periodic inspections, code compliance, truth-in-sale-of- housing, certificate of occupancy, fire escrow, and provides support services for the division.

Program 10

Construction Code Services

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Program 10

Construction Code Services

Goals

Living Well One Minneapolis A Hub of Innovation and Activity Great Places A City that Works X X X X X

Values

Equity Safety Health Vitality Connectedness Growth X X X X X X

71

2017 adopted budget 2018 recommended funding FTEs Funding

General Fund Non-General Fund General Fund Non-General Fund Current One-Time (Yes/No)

$10,407,422 $715,687 $11,221,666 $762,489 74.94

Program 10

Construction Code Services

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B 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2011 2012 2013 2014 2015 2016 YTD 2017 Valuation in millions

Construction Valuation

Program 10

Construction Code Services

73

50 100 150 200 250 2010 2011 2012 2013 2014 2015 2016 YTD Aug 2017

Active Permits > $1M Value

Program 11

Debt Service & Transfers

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Purpose and Context

This program relates to the administration and management of certain CPED financial resources, both with external partners and between CPED funds. This program provides for the transfer of revenues necessary to pay annual debt service

• n bonds and other contractual obligations issued to undertake various CPED activities as well as the internal transfer of

eligible revenues to finance CPED development activities.

Services Provided

Program 11

Debt Service & Transfers

Goals

Living Well One Minneapolis A Hub of Innovation and Activity Great Places A City that Works X X X X X

Values

Equity Safety Health Vitality Connectedness Growth X X X X X X

75

2017 adopted budget 2018 recommended funding FTEs Funding

General Fund Non-General Fund General Fund Non-General Fund Current One-Time (Yes/No)

$35,505,078 $36,141,505

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Operating Capital Recommendations - CARS

Operating capital recommendations - CARS

$1,719,455 to the CPED budget to replace the MINS system.

• The Management Information Network System (MINS) is an essential CPED

business application. The system supports management of three primary business functions: Property Management, Projects, and Loan programs.

• The current system is obsolete. It was custom built in the mid 1990’s and is

dependent on systems that are no longer supported.

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CLIC capital recommendations

CLIC capital recommendations

• Development Infrastructure Program $500,000
• Funding for various citywide development projects
• Art in Public Places - $716,000
• Incorporates public art into the City’s capital program as stand

alone artworks or as integrated into public infrastructure

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TH THE C E CPED ED TE TEAM

CITY OF MINNEAPOLIS

Questions?

THANK YOU