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These comments are responses to the statements listed below,
which were generated in regard to the
Brad Tabke  Interview of
01-31-2014.
 

Shakopee competes to attract well-paying jobs with carefully structured incentives
 

OVERVIEW

According to Shakopee Mayor Brad Tabke, Shakopee saw "phenomenal" growth after the new Bloomington Ferry Bridge was built in 1996. The bridge carries U.S. Hwy. 169 across the Minnesota River between Bloomington and Shakopee. The city's population grew by 80 percent between 2000 and 2010 and is now just under 40,000. He points out that the Shakopee school district built a new high school six years ago and will need a second high school by 2017. He notes that Shakopee has a very highly educated workforce living there, but 84 percent of them leave town every day for work.

Tabke says that Shakopee is trying to control its residential growth and to curb sprawl. He states that Shakopee's current intent is not to increase its population, but to increase the number of jobs for people living in the city. To that end, Tabke has focused on bringing well-paying new jobs to the city by promoting economic development. During the first two years of his mayoral term, Shakopee has used publicly funded incentives, often matched by incentives from Scott County and the State of Minnesota, to help attract seven major new business developments. He says there will be 4,500 new jobs in the city by 2018, adding to its current 19,000 jobs. The city's goal is to have 30,000 jobs by 2030 and 50,000 jobs by 2050. 

For the complete interview summary see: Tabke interview

Response Summary: Average response ratings shown below are simply the mean of all readers’ zero-to-ten responses to the ideas proposed and should not be considered an accurate reflection of a scientifically structured poll.

To assist the Civic Caucus in planning upcoming interviews, readers rated these statements about the topic on a scale of 0 (strongly disagree) to 5 (neutral) to 10 (strongly agree): 

1. Topic is of value. (8.3 average response) The interview summarized today provides valuable information or insight.

2. Further study warranted. (8.4 average response) It would be helpful to schedule additional interviews on this topic.

Readers rated the following points discussed during the meeting on a scale of 0 (strongly disagree) to 5 (neutral) to 10 (

3. Offering incentives is a sound strategy. (6.5 average response) Aggressively offering financial incentives to attract new businesses is a sound strategy to spur economic development for cities like Shakopee and for the state.

4. Offer incentives only to newcomers. (2.8 average response) The city should continue its policy of providing financial incentives only to nonlocal businesses relocating to Shakopee and not to local businesses expanding in the city.

5. Add more jobs than homes. (7.3 average response) Shakopee's intent to become less of a "bedroom suburb" by attracting more jobs than homes, thereby giving its residents more opportunities to find work close to home, is a sensible objective.

6. Hwy. 169 corridor a planning priority. (6.0 average response) Metro and state plans should give priority recognition to the large numbers of jobs within the north-south Highway 169 corridor through Anoka, Hennepin and Scott Counties.

7. Tap property-owners' windfalls. (5.6 average response) If the state builds more freeway lanes across the Minnesota River, some of the expense ought to be shared by property owners who benefit financially as a result.

Response Distribution:

Strongly disagree

Moderately disagree

Neutral

Moderately agree

Strongly agree

Total Responses

1. Topic is of value.

0%

0%

9%

55%

36%

11

2. Further study warranted.

0%

0%

9%

45%

45%

11

3. Offering incentives is a sound strategy.

9%

0%

18%

64%

9%

11

4. Offer incentives only to newcomers.

27%

45%

18%

9%

0%

11

5. Add more jobs than homes.

0%

9%

27%

36%

27%

11

6. Hwy. 169 corridor a planning priority.

0%

18%

36%

36%

9%

11

7. Tap property-owners' windfalls.

9%

9%

36%

36%

9%

11

Individual Responses:

Dave Broden (7.5) (7.5) (7.5) (0) (7.5) (5) (5)

1. Topic is of value. Good discussion but [not many] facts and details, which would support the approach and rationale for securing business and industry for a city or region.

2. Further study warranted. Definitely desired if discussion can be … tied to a growth plan for the region and/or state.

3. Offering incentives is a sound strategy. Incentives should not be viewed as a bad word but rather as an opportunity to strengthen the city or region as long as the benefits vs. risks can be reasonably quantified. Too much focus on incentive on the other hand may step around the real value or lack of value of the project.

4. Offer incentives only to newcomers. Incentives must be balanced. Existing organizations must have encouragement to expand, maintain, and support the community. This is a very difficult challenge to address since most incentives are not focused [on existing businesses]; here some innovative thinking should be applied. Most cities or regions do not relate to what is there until it is too late and the company decides to move, or simply declines in business and fades away and then it is too late.

5. Add more jobs than homes. Any region will and should be a balance of business industry and housing. The fiscal disparity legislation recognized this and made adjustments that make sense. It is not necessary that all communities have the business/industry tax base if a regional approach can be established and applied effectively.

6. Hwy. 169 corridor a planning priority. While the Hwy. 169 corridor is a strong business/industry link there is no reason that it must be singled out as the only or a special case. This requires more thought and consideration than just a look at how the corridor is evolving.

7. Tap property-owners' windfalls. The Minnesota River crossing is a pathway for business/industry to and from SW Minnesota, South Dakota, etc. not only Shakopee. Some tolls may be appropriate but the need is not driven only by Scott County and to plan so would be way out of order.

Scott Halstead (10) (10) (0) (2.5) (5) (2.5) (10)

3. Offering incentives is a sound strategy. If we are really attracting new businesses it is OK. If we are just shuffling businesses that are already located inMinnesota and have the employees, facilities, markets, supporting businesses, we may be harming their current location and everyone surrounding. If we would lose the business from the state and incentives keep them, perhaps. Existing communities should get the same state and county support. I am very concerned about shuffling businesses within Minnesota and the use of incentives. There should be a lot of factors considered and individual communities may use incentives which are detrimental to others including the losing community, employees, taxpayers and infrastructure. Perhaps the State of Minnesota's role should increase.

5. Add more jobs than homes. Is it the intent of the State of Minnesota to have employment hubs? Will transit and road developments correspond?

6. Hwy. 169 corridor a planning priority. Highway 169 is already at capacity on portions and transit needs to be established in the corridor.

Bruce A. Lundeen (7.5) (10) (5) (2.5) (10) (7.5) (5)

1. Topic is of value. The information about the use of government financial incentives for private development is presented in a more palatable manner than was the Brooklyn Park/Coon Rapids package.

2. Further study warranted. Projected cost-benefit ratios assumed by facilitators of publicly funded incentives must be publicized. A historical review of promises made will reveal if promises are kept.

3. Offering incentives is a sound strategy. We will see.

4. Offer incentives only to newcomers. Financial incentives should be provided based on merit.

Bruce Williamson (10) (10) (7.5) (5) (10) (5) (7.5)

Mark Reimler (10) (10) (10) (0) (5) (10) (5)

7. Tap property-owners' windfalls. This is a sound idea in principal but the details would be impossible to develop.

Josh D. Ondich (7.5) (7.5) (7.5) (2.5) (5) (7.5) (5)

4. Offer incentives only to newcomers. You want to attract businesses in your community, but also want to retain developing businesses in your city also.

5. Add more jobs than homes. The development of Shakopee over the next couple of decades will help Shakopee become more like its neighbors Burnsville or Eagan, but it makes more sense not to be too aggressive in your push for development like a $89 million dollar referendum for a new high school. I live in the Shakopee School District, which also covers my part of neighboring Prior Lake. It has been a big local issue.

Don Anderson (5) (5) (7.5) (2.5) (2.5) (2.5) (7.5)

5. Add more jobs than homes. There is obviously more people than jobs are needed or available. We always will have "bedroom communities", be they suburban or urban. It is impossible to have equal jobs and homes.

6. Hwy. 169 corridor a planning priority. Metro area covers more than those 3 counties and no area should have priority.

Gregg Iverson (na) (na) (na) (na) (na) (na) (na)

Set up a casino.

Ron Kuecker (na) (na) (na) (na) (na) (na) (na)

Those are not innovative and have been used for sometime The only problem with them is everyone else has to pick up the tab for [the] county, city, and schools, while [only the] new [business] gets the tax break. Soon all new businesses get the break and all locales have to give them to be competitive, and you’re back to where you were competing on other fronts and more taxes being [paid] by someone else. I`ve watched this happen as a county commissioner for 10 years.

Chuck Lutz (10) (10) (9) (7) (8) (8) (6)

Tom Spitznagle (8) (8) (6) (4) (8) (5) (4)

Roger A Wacek (8) (6) (5) (0) (10) (5) (0)

Larry Schluter (8) (8) (8) (5) (9) (8) (7)

It is good to see Shakopee have the growth they are having as they always seemed to be on the fringe.

    

The Civic Caucus   is a non-partisan, tax-exempt educational organization.   The Interview Group  includes persons of varying political persuasions,
reflecting years of leadership in politics and business. Click here  to see a short personal background of each.

  John S. Adams, David Broden, Audrey Clay, Janis Clay, Pat Davies, Bill Frenzel, Paul Gilje (coordinator), Randy Johnson, Sallie Kemper, Ted Kolderie, Dan Loritz (chair),
Tim McDonald, Bruce Mooty, John Mooty, Jim Olson, Paul Ostrow, Wayne Popham, Dana Schroeder, Clarence Shallbetter, and Fred Zimmerman


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The Civic Caucus, 01-01-2008
2104 Girard Avenue South, Minneapolis, MN 55405.  civiccaucus@comcast.net
Dan Loritz, chair, 612-791-1919   ~   Paul A. Gilje, coordinator, 952-890-5220.

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