Council Economic Development COW

Summary

Meeting Overview

The Economic Development Committee of the Whole met on October 15, 2013, at 1:00 P.M., with Beard presiding. The committee addressed five agenda items during the session, taking two votes and hearing two public comments.

The committee approved the Committee Summary from July 9, 2013. Three informational presentations were delivered: the Commerce Lexington Quarterly Activity Report, a presentation on Collaborative Economic Development Activities, and Economic Development Expense & Performance Reporting. The Downtown Lexington Corporation Management District Proposal was deferred for future consideration.

Attendance

The following individuals were present at the meeting on October 15, 2013:

• Beard
• Gorton
• Ellinger
• Kay
• Ford
• Akers
• Lawless
• Farmer
• Stinnett
• Scutchfield
• Myers
• Mossotti
• Clarke
• Henson
• Lane

No absences or late arrivals were recorded.

Votes and Decisions

Approval of the 7.8.13 Itinerant Merchant Ordinance as Amended 2:05

A motion was made by Akers and seconded by Henson to approve the 7.8.13 Itinerant Merchant Ordinance as amended. The motion passed by roll call vote with 10 ayes and 2 nays.

Voting in favor: Akers, Lawless, Farmer, Lane, Clarke, Kay, Myers, Mossotti, Henson, and Stinnett

Voting against: Gorton and Scutchfield

Amendment to Door-to-Door Sales Hours in the Itinerant Merchant Ordinance 2:05

A motion was made by Lawless and seconded by Farmer to amend the door-to-door sales hours in the Itinerant Merchant Ordinance to 9 AM to 8 PM. The motion passed by roll call vote with 10 ayes and 2 nays.

Voting in favor: Akers, Lawless, Farmer, Lane, Clarke, Kay, Myers, Mossotti, Henson, and Stinnett

Voting against: Gorton and Scutchfield

Budget and Financial Actions

The meeting included two significant financial appropriations:

Downtown Lexington Management District Operations

The body appropriated $325,000 in funding for the Downtown Lexington Corporation Management District to support its operations.

Jobs Fund Establishment

A $2,000,000 appropriation was made to establish a Jobs Fund through the Economic Development Fund. This fund is designated to support local job creation and provide assistance to SBIR/STTR (Small Business Innovation Research/Small Business Technology Transfer) companies.

Public Comment

Two speakers addressed the body during public comment, both expressing support for the Jobs Fund.

Nathan Dickerson 54:00 spoke in favor of the Jobs Fund, emphasizing the importance of retaining young professionals in Lexington. He referenced Denver's revolving loan fund as a successful model, noting that it achieved a 5:1 return on investment.

Nathan Ball 1:09:13 shared his firsthand experience with NOMES Technology's growth. He stressed the critical need for upfront capital to accelerate business expansion and indicated that the proposed Jobs Fund could have been beneficial to his company during its earlier stages of development.

Appointments

Billie Peavier was appointed to the Business & Education Network (BEN).

Contested Items

Downtown Lexington Management District Proposal

Council members expressed divided opinions regarding the proposed Downtown Lexington Management District, resulting in a split vote. The primary point of contention centered on the fairness of the tax structure within the proposal.

Specifically, council members raised concerns about taxing private property owners while government-owned properties would remain exempt from the tax. This disparity prompted debate about equity in the distribution of the financial burden. Council members also expressed concerns about the potential tax burden that the proposal would place on businesses within the district.

The disagreement reflected broader questions about the appropriate allocation of costs for downtown management and development initiatives, with some council members questioning whether the proposed tax structure fairly distributed responsibility among all affected property owners.

Committee Summary 7.9.13

0:00

The summary of the July 9, 2013 meeting was presented for approval. Lane moved to approve the summary, and Farmer seconded the motion. The summary was approved unanimously.

Commerce Lexington Quarterly Activity Report

Gina Greathouse presented the Q3 2013 quarterly activity report for Commerce Lexington 1:00. The presentation highlighted several significant achievements and initiatives during the third quarter.

Key Highlights:

• Marketing trips were conducted to promote business development
• Business expansions were documented across the region
• Launch of the Minority Business Accelerator program
• Record 42 new project leads generated
• $5.5 million in capital investment attracted
• 162 new jobs created

The report demonstrated strong economic activity and growth metrics for the quarter. The introduction of the Minority Business Accelerator represents a new initiative to support underrepresented business owners in the Lexington area.

Outcome:

This agenda item was presented as informational, with no formal action or debate recorded.

Downtown Lexington Corporation Management District Proposal

9:10

Renee Jackson presented a proposal to establish a Downtown Lexington Management District. The proposal outlined several intended benefits, including enhanced public services, beautification initiatives, and wayfinding improvements for the downtown area.

Funding Structure

The district would be funded through a property tax assessment of $1 per $1,000 of assessed value. Based on this rate, the proposal projected first-year revenue of $325,000.

Council Concerns

Several council members raised questions and concerns about the proposal:

• Council Member Lane participated in the discussion regarding the proposal's details and implications
• Council Member Stinnett raised concerns about the proposal
• Council Member Akers contributed to the discussion
• Council Member Myers also participated in deliberations

Key issues discussed included:

• Fairness of the assessment structure
• Whether government-owned property would be included in the assessment
• Notification processes for affected property owners

Outcome

The council deferred action on the Downtown Lexington Corporation Management District Proposal, indicating that further consideration and discussion would be needed before a final decision.

Collaborative Economic Development Activities

Kevin Atkins reported on quarterly meetings conducted with economic development partner agencies 56:07. The discussion focused on improving collaboration among these organizations to strengthen regional economic development efforts.

Atkins emphasized the importance of coordinated efforts in attracting and retaining businesses within the region. He highlighted that aligned strategies among partner agencies would enhance the effectiveness of economic development initiatives.

The agenda item was presented as informational in nature, with no formal debate or competing perspectives documented. The outcome was informational, meaning the discussion served to update the body on ongoing collaborative activities rather than to reach a decision or resolution.

Economic Development Expense & Performance Reporting

Jonathan Hollinger presented the 2013-2014 performance reporting mechanism for economic development 2:37. The discussion focused on how the city tracks and reports on economic development activities and their outcomes.

Key Discussion Points

Council members Myers and Beard offered suggestions for enhancing future performance reports. They recommended that subsequent reports include economic impact analysis to better demonstrate the tangible effects of economic development initiatives. Additionally, they suggested incorporating initial job data into the reporting framework to provide measurable employment outcomes from economic development efforts.

Outcome

The item was presented for informational purposes. No formal action was taken, but the feedback from Council members established direction for improving how economic development performance is tracked and communicated to the public in future reporting cycles.