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Differing visions of economic development

Recent projects; College Drive, Taco John's TIF criticized

Posted: September 5, 2012 - 11:56pm

Competing visions were aired Wednesday night at the Rosenmeier forum on economic development, with much of the talk centering on the wisdom of Brainerd’s College Drive and Taco John’s projects.

Panel member Charles Marohn, executive director of Strong Towns, criticized the College Drive project as a $9 million shortcut out of town and the Taco John’s project as an unwise, 26-year tax-incremental financing project for a fast food franchise that disconnected the business from its nearby neighborhood.

The TIF financing for the Washington Street restaurant, Marohn said, “as a long-term strategy for our community is a loser.”

He said that after the TIF subsidies the tax value of the Taco John’s block was about $830,000 compared to the adjacent block — the one where Esser’s Warehouse Liquors and a pawn shop are located — where the tax value is $1.1 million. Marohn went on to describe the liquor store’s block as the “worst commercial block in the city of Brainerd.” Marohn criticized the removal of sidewalks connecting the nearby residential neighborhood to the restaurant and labeled the project as “auto oriented,” which creates a problem for neighbors who can drive to Baxter’s competing services.

“Once they get in their car, Brainerd loses,” Marohn said.

Speeds on Highway 210 should be lowered and the restaurant should have been better connected with its neighborhood, Marohn said.

“That highway is a cancer,” he said.

Other panelists said they didn’t think the redevelopment of the Taco John’s was a step backwards in development.

Sheila Haverkamp, executive director of the Brainerd Lakes Area Economic Development Corp., said Taco John’s was an example of a case where the business community drives how development occur.

Cheryal Lee Hills, executive director of the Region Five Development Corporation, said Taco John’s was a Band-Aid approach and that governments needed to adopt ordinances and comprehensive plans and needed to stick to them.

Lisa Paxton, chief executive officer of the Brainerd Lakes Chamber, said she had never heard of a vision of making the Highway 210 corridor more pedestrian friendly.

Marohn said he had nothing against Taco John’s and that his relatives ran the franchise.

Marohn said the College Drive road project money could have accomplished more for a fraction of the cost if they striped lanes for bicycles, reduced the “obnoxiously wide roads,” and created a more walkable atmosphere that might have encouraged college instructors to live nearby.

The economic development forum, conducted at the Central Lakes College’s Brainerd campus in the Chalberg Theatre, was a wide-ranging discussion which also touched on affordable housing and transportation. The panel also included Mark Ostgarden, Brainerd city planner. The forum was sponsored by the Rosenmeier Center for State and Local Government.

Marohn advised local governmental units to keep taxes down over a long period of time, grow markets for their businesses and reduce regulation.

Ostgarden said city officials often have difficulty articulating their vision and creating one can be a messy process.

“The first thing we have to do is have a vision,” Ostgarden said. “Unless we do that we are not going to put ourselves in a position to compete economically.”

The Brainerd city planner decried a rumor that Brainerd was not business friendly, stating the city’s ability to work with businesses is as good or better as any other community in the state.

Haverkamp agreed the city of Brainerd was very receptive to working with businesses.

“Overall, I feel our communities do very well,” she said.

Ostgarden said while many cities would like to see a large company move in with hundreds of jobs, those occurrences are one in a million.

Marohn noted how Brainerd has grown horizontally but not vertically and not by filling in key locations. He challenged the city to absorb half of Crow Wing County’s projected growth of 25,000 without investing in one more foot of pipe or one more foot of roadway.

Paxton noted the chamber’s encouragement of governmental units’ collaboration in order to spend tax dollars more efficiently, and its advocacy for “e-fairness”, a tax on online businesses that would help level the playing field for Main Street businesses. She said there was no support for any tax increase at the Minnesota Legislature because it was an election year.

Marohn warned against a reliance of government subsidies for economic development.

“We are not going to be able to subsidize our way to prosperity,” he said.

Most panelists urged for a private/public partnership in economic development.

When the panelists discussed downtown Brainerd, Paxton described it as a “true gem” and noted that it had lost very few businesses during the economic downturn. Marohn noted that 8,000 people lived within walking distance of downtown. Ostgarden said 1,000 employees worked within a mile of downtown.

“Brainerd is a great city,” Ostgarden said. “We need to find ourselves as a city.”

Moderating the panel was Taylor Stevenson, vice president of the Rosenmeier Center Board of Directors and a DFL candidate for Senate District 10. Steve Wenzel, executive director of the Rosenmeier Center, introduced the panel. Opening remarks were delivered by Larry Lundblad, CLC president, and Eric Klang, Pequot Lakes police chief, of the Rosenmeier board.

MIKE O’ROURKE, associate editor, may be reached at 855-5860 or mike.orourke@brainerddispatch.com. He may be followed at www.twitter.com/MikeORourkenews.

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clmarohn
35
Points
clmarohn 09/06/12 - 06:40 am
6
0

Taco John's

Here's what I wrote earlier this year about the Taco John's project -- there is a lot of nuance to the conversation not able to be fully captured in this article.

http://www.strongtowns.org/journal/2012/1/2/the-cost-of-auto-orientation...

http://www.strongtowns.org/journal/2012/1/4/the-lost-opportunity-of-auto...

As shown in these articles, my point of comparing the Taco Johns to the "worst commercial block in the city" just two blocks over was to point out that the run down block, despite how we look at it, actually has MORE value (pre-subsidy, not post) than the brand new Taco Johns. Imagine how valuable this block could be if we just showed it a little love!

Myeye08
3937
Points
Myeye08 09/06/12 - 08:26 am
5
6

Common Thread

Anyone see a common thread in the Rosenmeier Center?

Sverre Johnson
825
Points
Sverre Johnson 09/06/12 - 08:47 am
6
8

Should have been billed as a Partisan Event

Outrageous that the "non partisan" Rosenmeier Center would have the DFL Endosed Candidate as the moderator. Think there is an agenda there?!

jeremy_doyle
58
Points
jeremy_doyle 09/06/12 - 09:31 am
7
5

Again, I offer you to contact me

Sverre and any others who object to the moderator,

In the posts of a previous article I personally invited you to come to the event and then discuss your concerns with me. I didn't hear from you. Were you at the event? Can you give me an example of what came across as being partisan? If there was a "partisan" agenda there, can you please tell me what it was?

I'd also love to hear your ideas on topics you find interesting for the Rosenmeier Center to cover. We are always open input.

Jeremy
218.833.2113
contact@jeremydoyle.com

pdnet15
15836
Points
pdnet15 09/06/12 - 09:33 am
5
8

The Rosenmeier Center is a Democratic run organization

and could care less about other views. Funny the the Dispatch didn't mention Stevenson's name before now. That says it all. Maybe instead of looking busy and interested, he should be looking for a job!!

jeremy_doyle
58
Points
jeremy_doyle 09/06/12 - 10:51 am
5
4

PDNET15

It was mentioned before. On August 24th to be exact.
http://brainerddispatch.com/business/2012-08-24/economic-development-for...

factchekr
78
Points
factchekr 09/06/12 - 11:53 am
7
2

Rosenmeier Center's Non-Partisan Status

To be sure, pdnet, the Rosenmeier Center has people on its Board, including Taylor Stevenson and Kris Hasskamp, with unmistakeable Democratic credentials. That said, they also have Board members and/or staff with unmistakeable Republican credentials: Dale Walz, former Republican legislator; David Alan Pundt, frequent Republican candidate for public offices; Steve Wenzel, one-time DFL legislator, but long rumored to have switched party affiliations as evidenced by his appointment by President G.W. Bush as the State's USDA Director and his frequent, more recent public endorsements of Republican office seekers and absence of any endorsements for Democratic office-seekers.

This inclusion of both political persuasions is a hallmark of the Rosenmeier Center Board and is part and parcel of the the potential they offer to bridge partisan divides--a divide, pdnet, that I get the impression you are much more interested in fueling. Clearly, that is your prerogative; it's just not my personal cup of tea.

minnesnowda
17066
Points
minnesnowda 09/06/12 - 12:10 pm
8
5

both sides represented in the forums

No matter what the topic, from Voter ID to the Marraige Amendment -- heavy hitters from both sides are invited.

The world could use more civil discussion of the issues.

If you attend these events, you WILL hear both sides fairly.

Some people do not want to hear both sides...sadly.

Iven Bay
167
Points
Iven Bay 09/06/12 - 02:28 pm
4
4

Partisanship

I believe that every member of the panel at the economic development forum, excluding the moderator, votes republican. Perhaps sverre-johnson's outrage is a bit misplaced.

Lifelongresident
3862
Points
Lifelongresident 09/06/12 - 04:27 pm
4
3

Brainerd city planner

"Brainerd city planner decried a rumor that Brainerd was not business friendly"

Really Mr. Ostgarden is that why Brainerd now will have two bypasses. The first being Hwy 371 and the new second (in case you missed the first) being College Drive. Come on Mr. Ostgarden, let's make sure that no one ever makes it to downtown Brainerd. Care to compare all the businesses that Brainerd has brought in the last ten years to Baxter? Mr. Ostgarden blames the City Council for lack of vision, the first "vision" the City should have is to get a new city planner you know one that actually does something to improve the city and not worry about how many sticks are in some old lady's backyard!

Lifelongresident
3862
Points
Lifelongresident 09/06/12 - 04:30 pm
4
1
sadiemarriedlady
23494
Points
sadiemarriedlady 09/06/12 - 06:24 pm
3
2

Iven

How do you know how someone votes?
Do you somehow see their votes when they vote?
Might be something we should look into or are you doing some assuming?

Myeye08
3937
Points
Myeye08 09/06/12 - 07:18 pm
3
5

"Heavy Hitters"

I wouldn't call a minnow in a puddle a heavy hitter nor would I call a little fish in a big pond one also. All mention at best, with the exception of the minnow and Wenzel, could be big fish in a small pond with the minnow being a small fish in a small pond. I write this as no offense to anyone but Brainerd is not a big pond Snowda.

Iven Bay
167
Points
Iven Bay 09/06/12 - 08:01 pm
5
3

@sadiemarriedlady

Sadie, I've had the pleasure of meeting each member of the panel and discussing political issues with each of them. I interpret their views to be on the conservative side of the spectrum. There is nothing wrong with that but it shows that the commenter who implied that the forum was somehow biased because of the choice of moderator doesn't have his facts lined up.

Sverre Johnson
825
Points
Sverre Johnson 09/06/12 - 10:23 pm
3
4

Missed the point

You miss the point entirely. No "non partisan" group should hold a public forum with other "non Partisan" groups, advertise it as a "non Partisan" forum and have as its moderator a candidate running for office during an election unless they give the opposing candidate equal time. To do so shows a partisan bias. It would have been very easy and simple for Mr Wenzel to have someone not running for office moderate this and take all question of partisanship away. He purposefully chose not to.

Bubba Yumbo
18849
Points
Bubba Yumbo 09/07/12 - 03:13 am
3
2

Thanks for hosting this forum

Charles Marohn is an amazing resource -- he understands liveable, healthy communities, and how to make them happen in a realistic, affordable manner. Good forum.

Sfcmarkc
19
Points
Sfcmarkc 09/08/12 - 02:08 am
0
0

Non-partisan forum

Sverre, if you had attended the forum as I did, you would have seen that pretty much all Mr. Wenzel did was to introduce the members of the forum at the beginning.
It was a very interesting experience and I'll likely try to attend the next one

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