Committee Minutes

MINUTES/BUSINESS FRIENDLY GF TASK FORCE
Wednesday, July 16, 2003 - 5:00 p.m. - Room A101____

Members present: Council Members Gershman, Brooks, Kerian; Brad Gengler, Planning; Dennis Potter, Grand Forks Planning; Keith Lund, Urban Development; Bill Schoen, Architect; Gary Sondreal, Sondreal Construction; Jim Price, Rydell Company.

Gershman stated how appreciative we are of Wes Rydell for providing the transportation and arranging an informative and important meeting in Sioux Falls, that Gary, Bill and Jim went to and was sure that Jim had a big part in arranging that, Jim called him when they started doing this and had several conversations, and is very appreciative of folks that are interested in the welfare of Grand Forks and wanting us to do things better as we grow, and a special thank you to Wes and Jim for the work they did in putting this together. He stated today we are to hear a report on the trip from Gary, Bill and Jim, and what we want to do from there.

Bill Schoen stated he had a very substantial package of "stuff " that was given to them and would like to pass on to Rick or who is most appropriate to have this - this ranges from growth management plan, downtown plans, landscape design manuals, all the way down to promotional types of materials, check lists and all the kinds of things that range from regulations to check lists on how things are done, different reports and has already given all of this to Dennis and Brad and they have made copies of what they could use, but thinks there is some information that would be real valuable to the City. Jim Price and Wes Rydell did an unbelievable job - set up meeting including the mayor, people from the planning office, inspections office, their equivalent to Rick Duquette who coordinated all those people and also several developers there who had another perspective of city government as opposed to the government themselves - had a forum where they had free reign to ask any questions and to put any type of an issue before them and seemed to work well together. He stated that each of them had individual conversations and he took several pages of notes and would hit some of these things as Gary and Jim also have comments.

He stated one of the things they discussed were rules and regulations - we have rules and regulations that need to be followed and it is not anybody's intention to relax them but to make them clear, obvious to anybody and everybody as soon as possible for the benefit of the person who is doing the project, regulators, politicians and put everything on the table.

Gershman asked if they addressed the issue of people doing things in writing rather than verbal. Mr. Schoen stated Sioux Falls has an electronic log and the person who receives the initial call, enters it into the log (his name, caller's name and what they want to do and who this person should talk to) all critical timeline aspects and that gets everybody into the action in how they need to respond to this person - goes off to all the offices - is very organized that if caller comes back to City Hall 2 weeks later and talks to another person, he punches in code and can see exactly the status of the project - everybody has info and no delays on anything - everything is fast tracked. Gershman asked what is time line on typical project here as opposed to what it might be in Sioux Falls. - Mr. Potter stated here could take place from 3 weeks to 3 or 4 months depending on what is typical. Mr. Schoen stated Sioux Falls did their best to eliminate tripping hazards that can be eliminated upfront - clear with rules and regulations and being clear with schedule and what has to be done and were so open and negotiating within reason - ready to do whatever they could to foster the development in their community - but that doesn't mean softening the rules and regulations.
There were some questions re. getting software; Keith Lund stated while visiting in Fargo, they had some information and could talk to anybody and determine status of the project.

COUNCIL MEMBER KERIAN PRESENT

Mr. Schoen stated it was his impression that once the information was in the computer, it moved to everybody and everybody had access to it. Mr. Price stated they want business in Sioux Falls and he lives in MN and hear constantly their advertisements "move to Sioux Falls", and there's a reason for that - everybody's role is to do whatever they have to do for the customer to find out, how do we get you in our community, what do we have to do to get you in our community and a constant follow-up - the electronic log is only device, could do that on paper, they have a very lean staff but attitude there is everybody embraces you and chases you to do business in their community under the boundaries, and will do anything they have to help you do that, and if there are things you are concerned about, the door is open to anybody that puts up the obstacle and they will have to help come up with the solution to help you get into their community. He stated this is home base for Mr. Rydell and the whole company they have now, 50+ stores across the country in about 12 states in many cities, and have great interest in seeing this community do well and that's the reason he is here and reason he keeps showing up - they want to see this community do well and see it expand, and the attitude in Sioux Falls is that they will do anything to get business in their community, the contractors, as well as the businessperson who is coming to that town, are customers and how do you treat a customer, and they believe on Rydell group that they are like a guest in their home - and made to feel in Sioux Falls and many other communities like guests of the community - that he is working in Phoenix right now and appropriating some land, and looked in four different communities and doesn't think there was a 3-day lapse for about 4 weeks once he went down (and they didn't know who he was or what they were doing except they wanted to develop an automobile agency) and didn't even tell them what kind in their communities, that he is continually being called, what can we do to get you in our community - and are on final verge of the negotiations on property with land owner and you sign the papers next Tuesday, we'll get you a permit to get started in 60 days and they have roads to put in, etc. and they work on a very tight timeframe - build their buildings and do things quite quickly and if stopped, it's not community they necessarily want to do business in - government has to understand that if they are there to support business and if government is in competition or trying to find all the political reasons why not to do things, instead of what it is that it's going to take to change our way to make that happen. He stated they've looked at several projects here that they have shut down because of reasons , never been contacted as to what happened on that project, how come not doing business here, that he has visited with Dennis many time and his door is wide open when he walks in unannounced, but he goes away and nobody cares. He asked what businesses have you contacted that have come here looking for things - one of the developers that was there that has done 35 projects in various cities and this was the worst community to do business with out of all the stores that they have built - he stated in his experience he works in Los Angeles and small towns all over the country, but even in Los Angeles he can get things done faster and easier that can here, with less obstacles. Gershman asked if that process attitude or competency. Mr. Price stated he couldn't stand judgment over that, but it tells him when people don't call and aren't concerned about why we're not doing things, it would tell him that the attitude, the competency and is all of those it would seem to him. He stated he went to Fargo and browsing some land, and almost couldn't get out of the office, they were going to find him some land to do business in their community - and asked what is the goal - that to him government is to support not to block businesses - to make fair market and let the entrepreneurs of the country do business and they should be supporting that and instead, sometimes it is the other way - businesses have to play games to try to do business in communities and not picking on Grand Forks because there are other places where they have had some difficulties - that there are communities that say if you're going to build in our community, the light poles are red, the buildings are brick, and see if we can make that happen in this community but knew up front so they could make a decision and it wasn't difficult to make decision that it was good place to be but they also said what can we do to help you in other ways to get things done.

Mr. Potter asked if the Wal-Mart occurrence was a recent - Mr. Price stated he didn't know the timing but the developer's attitude was that he was responsible for getting 35 Wal-Mart's contracted in various communities - they are on time schedules and businesses won't do that they'll go someplace else.

Gershman stated they need to stress that you're not saying that you have abandoned the codes that protect the citizens' interests and that is not part of the deal; that he wants the City to be business friendly but also to look good. Mr. Price stated they have an old building on 32nd and Washington and putting a ton of money into it to beautify it and their facilities stand tall - but don't want so much restrictions that it's not friendly either, need to listen to customer.

Mr. Schoen stated that developer was very frank and told more than Jim is saying but nobody in this room needs to be feeling guilty for not taking care of that situation - but what he thinks really worked is something they talked about in one of their previous meetings -about having the relationship manager because Sioux Falls uses that process and the minute the developer walked in, he had a name, contact and somebody who was watching out for him and somebody who would follow-up on him - we don't have that in place. Gershman stated he believes the city council needs to be part of the discussion and if are part of the problem, then they are on the docket too and need to know that. Mr. Schoen stated he heard them say that the city council staff needs to be informed of what is going on but the city council needs to follow the rules and regulations and if rules and regulations are clear, there are a lot of things that you won't have to get involved in - that if project fits all the rules and regulations you need to hear about it - takes away a whole era of politics that you don't have to go through. Gershman stated he didn't want the City Hall employees to think that they are not looking at themselves also - this is also the business community, some in Grand Forks have expectations that are way out and don't fall under the Code and get into problem there.

Kerian stated that he didn't get a follow-up, but what are other problems that you had here that we could learn from. Mr. Price stated the streamlining and minimizing - that the more people that it has to go through, the slower things are - don't need more people, need less people that are empowered to do their jobs and let them do it and when bring project to the city council, everything that is in the regulations is met, and just to inform the council, this is what is going on. He stated staff should have the power to monitor that but do it in quick manner and welcoming manner that they want the customers in their community - timing is one thing. He stated when they work with a contractor, expect them to be supported, and not the stuff that blocks them from doing the job - they have engineers, etc. look at those plans before or at least the same time and that the contractor should be able to walk that through - that sometimes there are priorities on jobs, when talking about some businesses that you want, should get them - that big developers will look to see how many projects they can do a year and have to spend that money, will go to the easiest community to do business with - and if not embraced, will walk away. Everybody should be treated the same, but the measurement of Grand Forks or any community should be how many businesses are we growing into our community a year that bring in jobs, people that are going to buy houses, and everything just gets bigger but if staying the same and stagnant, then have a problem.

Brad Gengler stated process for platting and replatting, rezoning, could take on a two-month window. Mr. Price stated there are legalities in any community, have to go through and give pubic notice, etc., that they know that but by the time that gets done, everything should be done - here's your permit, get grading and will work on the rest of the engineering of the building with you and how can we help get that done quicker and should be doing the same for the contractor so they can be more competitive with the customers coming here to help build new buildings faster. The normal dealership is built in anywhere from 9 months to a year, they do theirs in 5 months, sometimes less, from time get a permit, and if have to wait a year to get the permit and building seasons short in some of these communities, esp. in northern region, in south have short working day because of the heat in summer, everybody has their own issues but here frost issues, etc. that are significant enough for them making a plan for a project but that's why they're going to help get in the ground fast, don't need the whole construction document to build a building - Gershman asked if Planning and Zoning has to see complete construction document before we give a permit. Mr. Potter stated if have project pretty well down the road going through Planning and Zoning, have site plan and detailed development plan running on parallel track, have gone ahead and given footings and foundations before completion. Mr. Price stated every customer should be treated the same.

Brooks stated he had conversation re. business that closed, and asked if anybody on the city council or the city talked to that owner about what happened - if somebody comes in and then back away or don't hear from them again, should call. Brooks also noted that some things brought to council and questioned why, staff should have made this decision - but have to empower staff to do some of these things. Kerian stated it is an understanding of changing expectations - once we've established some things, should there be some rethinking about when somebody comes into City Hall how can we get that person to the right people to answer the questions, and what should expectations be and would suggest that we would want to do this for the citizens as well, anybody coming in for any reason, need to rethink what is the service to provide for them.

Mr. Schoen stated Sioux Falls' goal was easy and quick, everything they do is fast track - doing whatever they could do within rules and regulations to keep you - the focal point was planning office and people in planning office could each take this person into the electronic log and get started and focused. It was noted that in Sioux Falls they worked on what they could do that day, and that not only staff and city but council and mayor had access to all this information.

Mr. Schoen stated they used their website extensively, one of the fellows in the planning office looked at our website and had some suggestions about improving our website, adding name of specific contact people to the website, adding zoning ordinance to the website, they said their process or website is so sophisticated that if you fit within the rules and regulations, you can actually get a building permit with a credit card over the website, if put deck on your house something fairly straightforward. He stated he would have to rewrite his list before giving it to anybody.

Mr. Price stated Rydell's have a process and would be happy to share the steps of a sale with you because they are the same no matter what business you're in - you have customers coming here that you're trying to sell your community and need the same steps: 1) meet and greet, 2 ) find out what the person's needs are and get that met; 3) demo it if have to, take them out and show them what property available to them, etc. and could put those steps into your organization and empower your people to handle that as they met the criteria. One of the steps is follow-up in their sales transactions - what happened - when there is a problem to help them get it solved.

Gershman thinks the training, doesn't care if this takes some time to find out because problem took several years to create, had some mayors who were anti-business in this town, and that filters around everyone - is wonderful offer of training, and there is an attitude of what can we learn; sometimes don't know what the problem is.

Mr. Schoen stated the City of Grand Forks is still following the 1997 UBC and the State has already adopted the 2000 IBC, and to go from the Uniform Building Code to the IBC was a big jump for him, because you put a lot of things aside that you'd been following and have been changed - and need to get this done and into the IBC. It was noted that would be under Inspections which is under Engineering. Gershman stated we hire consultants all the time - Mr. Schoen stated in Sioux Falls they bring in consultants to train everybody and bring everybody up.

Mr. Schoen stated re. annexation land - that in Sioux Falls they have in the computer all the land that is available - they annex twice as much land as they need. Mr. Price stated it is good for business because won't be inflated where you have land all over so supports the business community to help keep competitive land costs correct and helps City. Mr. Potter stated he didn't know what the law allows in SD specifically but clear that Sioux Falls can annex land fairly easily and trunk line infrastructure where trying to move away from special assessments - Mr. Price stated they don't find reasons why things can't get done, they find reasons how they can get things done, that is about attitude - Sioux Falls and Fargo are doing it and develop quickly.

Gershman stated when they started this process, received some phone calls stating they were happy we were addressing this and offering suggestions. Mr. Price stated that Mr. Rydell is very happy to see the action the committee is starting and if anything they can do to help that and are interested in doing so. Gershman stated that taking time and effort out of their busy schedules and consideration they have in taking notes and report - real commitment and glad they are on this committee; and generosity, City was not presented with a bill, Mr. Price stated they won't be; Gershman stated that a private jet going down and arranging everything is a real commitment to our city and good corporate citizens and thanked them.

Gershman asked what our next step should be and would like to get something done first couple weeks in August with Tuesday as day for committee meetings, 7:00 p.m. and perhaps look at first week in August. Mr. Schoen suggested if they should assign a champion to this project inside City Hall to lead this charge - lot of things that need to get going. Gershman stated if someone in City Hall would like to arrange for training; that he would meet with Mr. Duquette to brief him on the meeting and some of the things discussed, and for Mr. Duquette to identify somebody.
The meeting was adjourned.

Alice Fontaine, City Clerk