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GETTING READY FOR HIGHWAY 5 PROJECT

AND GETTING TRAFFIC TO VICTORIA BUSINESSES

         Council voted 5-0 to drop discussion and pursuit of a business loan program in favor of developing a marketing plan for Victoria businesses as the city will undergo traffic detours and construction headaches in 2012 when Hwy 5 is slated for improvement. 

         Approximately $30,000 had been earmarked in a city fund for a business loan program.

         Holly Kreft, the city’s Community Development Director, began the discussion.  “It was voted on at the last council meeting to bring back this issue,” she said.  “It has now been reviewed by the Business Development Committee.  The BDC recommended the loan program not be pursued at this time, and that funds available be used instead for the marketing of businesses for the 2012 Hwy 5 project.  There was not an overwhelming response to the loan program.”

         Holly said that $30,000 would go only a very small way as a loan but could help many businesses if steered in a marketing direction.

         City Administrator Don Uram said he was in favor of the loan program, however.  “But I’m not supportive of spending $30,000 on a marketing program.  We can spend significantly less than $30,000 for that.”

         City Attorney Mike Norton reminded everyone that, in any case, “we can’t just give money away.  There are statutory requirements.”

         Councilmembers O’Connor and Tim Amundsen attended the recent meeting of the Victoria Business Development Committee.  About the forthcoming disruption due to Hwy 5 construction in 2012, Councilmember O’Connor stated, “It’s hard to overestimate the anxiety of the local business owners.  How do we keep Victoria vibrant during that construction period?  A fair amount of activity is going to take place in the next few months.”

         Added Holly, “We’ll be working with the business owners to develop a plan.”    She added that MnDOT has become more “business friendly.”

         Councilmember Jim Paulsen stated, “It seems we’ve had enough energy for a long time around the Lazarus Loan Program.  Why do we want to breathe life into that program?”

         Replied Administrator Uram, “There are a lot of reasons cities do this -- for its businesses and for its housing stock.  Housing may need some type of refurbishment in the future, not today but at some point in the future.”

         “Then we must amplify the emphasis on housing stock for the future,” said Councilmember Paulsen.

         In regard to a marketing plan for Victoria businesses, Mr. Uram said, “We need to change people’s behaviors now, to get them downtown now.”

         Stated Councilmember Roden, “Construction impacts trips before, during, and after a project.  People get comfortable with new routes.  We might need some of those marketing dollars after the 2012 construction.”  She referred to Smithtown traffic that got rerouted to Eureka Road in the recent sewer project, and Eureka remains busy now even though Smithtown Road re-opened.

         “Seems like judo to me, redirecting a force,” said Councilmember Tim Amundsen.  “The issue of business loans is dead.  Two committees have said No.  Business will be the judge.  Traffic is like water.  It goes where there’s the least resistance.  And those 18 spaces [proposed for the Kirsch Building site] aren’t going to resolve the parking issue here if this community thrives.  Let’s get some smart people in here and figure this out.  We’ve got to get a plan before we fix a cost to it.”

         Summarizing discussion and making the motion, Mayor Thun said, “The council is generally supportive of spending some of the loan funds to research, advertise, and develop a market plan to assist the city and businesses to direct traffic for 2012.  And we ask businesses to come back with a plan and solutions.”

         Loan fund money will become the marketing-for-2012 money.  Said Councilmember Roden, “I do believe this is warranted because of what the Hwy 5 construction will mean to this community.  It’s also necessary to provide for emergency services during construction.”

         “I would like some cost sharing,’ stated Councilmember Paulsen.

         “I’m totally supportive of that,” agreed Councilmember O’Connor.

 

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August 2010

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The Scoop at City Hall