cedar rapids business survey

CedarRapidsBusinessSurveyCity Manager’s OfficeJune 23, 2020

Outline• Overview

• Process

• Review Analysis & Findings

• Next Steps

• Questions

Overview:RetentionProgram• Purpose: Help facilitate local business expansion

o Remove hurdles to existing industry growtho Identify ways City ED process can have positive impacto Avoid (or delay) adverse impacts for employers

• Project Highlights:o Most visits from May 2019 to Feb 2020; 64 responses as

of 5/1/20o Joint visits ongoing w/CRMEA + ED Partner Collaborationo Visit cross‐section of businesses in Cedar Rapids

Overview:CityBusinessSurvey• Existing industry in CR

surveyed since 2016• Content focuses on needs

and priorities of business community

• Measures business climate satisfaction

• New in 2020:• New economic forecast model• Indicator series forward

looking

Synchronist ProcessSummary

j

EconomicBaseTheory

Themes• Though disruptive, history shows pandemics tend not to change direction of long‐run growth patterns. • (e.g., Memphis 1887; NYC 1918)

• COVID‐19 shock increases short‐run economic volatility and uncertainty; expansion of industry clusters is key to recovery/building greater economic resiliency.

• Reinforce analytics capability to clear picture of how external environment relates to range of local policy actions.

RegionalEconomicAnalysis• June 8th: U.S. Enters

recession after 128 months of growth (NEBR)

• Data rich forecast model enhances insight into local conditions/response

• COVID‐19 Shock to global economy:• Supply• Demand• Wealth (Income)

Unemployment• April BLS figures:

• Iowa : 10.2%• Linn County: 12.4%• U.S.: 13.3%

• Widespread impact• 1 in 5 households

lost work overall• 2 in 5 under $40k

annual income

• “Reallocation Risk”• 77% of workers

losing jobs may be able to return…(?)

GrossDomesticProductU.S. GDP:

• Q1 & Q2: ‐4.8%; ‐35% • Q3 & Q4: Stabilization

• (2019) Weakness in business cycle• Manufacturing• Transport

• Current decline lead by services sector:• Retail (Storefront)• Hospitality • Bar & Restaurant

MarketTrends• Model confirms steady

Cedar Rapids population growth (Up to 1%/yr)

• Record US Savings Rate: 33%

• Return to CR disposable income baseline in 2022:• Retain or grow market’s

purchasing power• Maintain current

position in in attracting service sector investment

OpportunitiesSurvey Results:• 62.5% of companies participating plan to expand in next

three years.

• Companies report a high‐level of satisfaction with Cityservices and infrastructure

• Businesses rank workforce productivity, quality andstability very highly

• No difference in positive sentiment toward doing businessin Cedar Rapids between local office and corporate staff

• About 8% of companies responded that expansion wouldbe more likely with completion of flood control

ChallengesSurvey Results:• CR businesses still identify workforce as most important

issue

• However, crime and public safety, economic growth (jobs),and flood control, and street repairs all showed increases

• Qualitative feedback identified a need to continue toinvest in quality life and amenities

• 73% of companies report emerging technology will changehow industry operates

• Only around 60% of companies surveyed export

Example:LaborAvailability

CityEDWebPortalEnhancement

www.economicdevelopmentcr.com

NextSteps• EDS anticipates economic and financial loss survey in second half

of 2020• Provide ongoing trends and conditions reporting as needed • Expand regional economic modeling toolkit (IMPLAN)• Perform value stream mapping for corn and soybean processing

industries to focus on cluster growth• Collaborative workforce needs survey already initiated • Engage external partners from regional to state level to forward

projects that enhance Cedar Rapids community’s economic resilience

Questions

Presentedby:David Connolly, AICPEconomic Development [email protected] 319‐286‐5067

PublicHearingtoContinueAcquisitionofEasementsfromAglandforTowerTerraceRoadReconstruction– FromMillerRoadtoI‐380June 23, 2020

ProjectOverview• 4 total parcels on this project; 2 ag land parcels

• Acquisitions include: temporary construction easements

• Iowa Code requires a public hearing when ag land is impacted

• Next Steps:

• Value the acquisition

• Meet with property owners to begin negotiations

• Construction proposed for summer 2021

PublicWorksRecommendationAdopting the resolution to continue the acquisition of temporary easements from agricultural property not yet acquired for an approved public improvement project.

Presentedby:Rita Rasmussen, SR/WAReal Estate Services Managerr.rasmussen@cedar‐rapids.org319‐286‐5802

2020SidewalkInfillProject

June 23, 2020

ProjectDetails• Construction Cost Estimate = $150,000• Bid opening on June 24, 2020• Anticipated completion in Fall 2020

The Public Works Department recommends approval of the resolution to adopt plans, specifications, form of

contract and estimated cost for this project.

Presentedby:Brenna Fall, P.E.CIP Program Managerb.fall@cedar‐rapids.org319.286.5732

BowlingStreetSWImprovementsFrom 50th Avenue SW toWilson Avenue SW

June 23, 2020

PROJECT DETAILS• CRANDIC Railroad crossing

improvements• Pavement repair and

rehabilitation• 4‐lane to 3‐lane conversion

ProjectDetails• Construction Cost Estimate = $1,935,000• Bid Letting on June 24, 2020• Construction scheduled for 2020 with Completion by July 2021


The Public Works Department recommends approval of the resolution to adopt plans, specifications, form of

contract and estimated cost for this project.

NoelridgeGreenhouseRoofRepairsPublic Hearing

NoelridgeGreenhouseRoofRepairs

• The Noelridge Greenhouse consists of five greenhouse structures that are connected to each other on the sides.

• This spring a hail storm damaged the roof panels on all five greenhouse structures.

• This project will repair the damaged acrylic panels on three of the houses and the damaged glass panels on two of the houses.

NoelridgeGreenhouseRoofRepairsOverview of Noelridge Greenhouses’


• Insurance funds will cover the costs for this project.

• The construction estimate for this project is $180,000.

• Bids are due Wednesday, June 24, 2020.

• We expect work to commence in the late summer or early fall.


Greenhouse Roof Hail Damage

6/24/2020

Glass PanelsAcrylic Panels

ImOn IceArenaPartyDecksProjectPublic Hearing

ProjectMap

KeyFactsaboutProject• Replacing bleachers in 4 corners of NHL Arena with decks to accommodate groups.

• Requirement in long‐term lease agreement between City and Cedar Rapids RoughRiders

• Purchase and Installation Cost Estimate ‐$200,000

• Funding – ImOn Ice CIP funded by hotel/motel revenues.

• Bid Opening – June 24, 2020• Completion Date – September 2020

ImOn Ice Arena recommends approval of the resolution to adopt plans, specifications, form of contract and

estimated cost for this project.

Presentedby:Michael SilvaExecutive Director, [email protected]‐398‐5211

FY2020SidewalkRepairProgram– ContractNo.2

June 23, 2020

BidResults• Bids received on June 10, 2020

Curtis Contracting Corp., Cedar Rapids, IA $216,731.00Possibilities Unlimited, LLC, Cedar Rapids, IA $230,580.00Ti‐Zack Concrete, Inc., LeCenter, MN $331,378.00Tricon General Construction, Cedar Rapids, IA $358,666.50B.G. Brecke, Inc., Cedar Rapids, IA $369,789.00Eastern Iowa Excavating & Concrete, LLC, Cascade, IA $537,933.00

The Public Works Department recommends award of the contract to Curtis Contracting Corp. in the amount

of $216,731.00


ReportonBidsandAwardRecommendation

Deb Ann Lane NE Sanitary Sewer LiningContract 6550069‐01

Proposed Improvements• Rehabilitate sanitary sewer with cured‐in‐place liner

• Corrects defects found during routine inspection program

• Lining 442 feet of 18 inch pipe

BidResultsandAwardRecommendation• Bid Date: June 10, 2020 (2 bids received):

• The Public Works Department recommends award of the construction contract to Municipal Pipe Tool Company, Inc.

Municipal Pipe Tool Co., Inc., Hudson, IA $118,390.00

Insituform Technologies USA, LLC Chesterfield, MO $141,457.00

OFBLLC– 1721DStSWResolutionofSupport

City CouncilJune 23, 2020

Background Received application for standard incentives from

OFB, LLC Project qualifies under the City’s Targeted District

Reinvestment – Economic Development Program Incentive provides a 10-year, 100% reimbursement

of increased taxes generated by the project

ProjectOverview

$850,000 total investment Construction of new 4-unit rowhouse

3-bedroom, 2.5 bath, 1,174 sq. ft.

Market Rate

For-sale, owner occupied

Recommendation

Staff recommends approval of Resolution of Support authorizing standard 10-year, 100% incentive:• $193,800 in total taxes generated over a 10-year

period• $146,700 reimbursed to the Developer (present

value of $95,200)

NextSteps

Presentedby:Caleb MasonEconomic Development Analystc.mason@cedar‐rapids.org319‐286‐5188

Today Resolution of Support

July Amend Urban Renewal Area Plan

August Development Agreement

TheHub– 900Block16th StNEResolutionofSupport

City CouncilJune 23, 2020

Background Received application for standard incentives from

The Hub, LLC Project qualifies under the City’s Targeted District

Reinvestment – Economic Development Program, located in College District planning area

Incentive provides a 10-year, 100% reimbursement of increased taxes generated by the project

ProjectOverview

• $2 million investment• 3 – 4-unit town house buildings (12 total

units)• Market rate• Zero lot lines• Rental or owner-occupied

Recommendation

Staff recommends approval of Resolution of Support authorizing standard 10-year, 100% incentive:• $436,150 in total taxes generated over a 10-year

period• $341,500 reimbursed to the Developer (present

value of $221,500)

NextSteps

Presentedby:Caleb MasonEconomic Development Analystc.mason@cedar‐rapids.org319‐286‐5188

Today Resolution of Support

July Amend Urban Renewal Area Plan

August Development Agreement

First&FirstWestCityCouncil

June 23, 2020

Timeline November 6 – Steering Committee reviewed

objectives and evaluation criteria for RFP November 12 – Open House December 3 – City Council initiated RFP February 28 – RFP Proposal deadline June 3 – Steering Committee Review Today – City Council consideration of proposal

recommended by Steering Committee

DevelopmentObjectives

Master-planned, destination development Creates new attraction to downtown Complements existing amenities Contributes to a sense of place – architectural design

and walkability Integrates public gathering space

ProposalEvaluation

Steering Committee is recommending the City Council pursue the development proposal of 1st & 1st LLC: Capable Development team with demonstrated

experience Project creates new attractions & amenities Incorporation of housing Incorporates public gathering

1st &1st LLC– KingstonLanding Development partners: Joe Ahmann, Chad Pelley, Nate Kaeding,

Matt Swift, Southgate Companies Consultants: OPN Architects, Fusion Architects, Hall & Hall

Engineers Estimated Investment: $90-100 million Project components:

Spare Time Family Fun Center Movie Theatre (12-14 screens) Big Grove Brewery Parking Structure (600 stalls) 6 – mixed-use buildings Outdoor gathering area/public plaza

6/24/2020

SteeringCommitteeRecommendationCity Council pursue the development proposal submitted by 1st & 1st LLC with thoughtful consideration to the following: Parking

Location & right-sizing to meet current and future needs Design compatibility within development

Multiple housing options & price points Design:

Strong connection to riverfront Sustainability View from I-380

NextSteps Today – Resolution authorizing the City Manager to

pursue a Project Term Sheet with 1st & 1st LLC: Minimum Improvements Parking structure Timeline & phasing Financial incentives Disposition terms

Summer 2020 – City Council consideration of a Project Term Sheet

Development Agreement

cedar rapids business survey

Documents