Category archives
Economic Development

This legislative session, the Coalition of Greater Minnesota Cities and the Greater Minnesota Partnership have teamed up to explore ways to address the child care shortage in Greater Minnesota. 

The child care crisis is a multi-faceted problem with no easy solution, but we strongly believe there are actions the Legislature and Governor can take to help address this issue. This session, our organizations are advocating for two bills that would appropriate a total of $13 million in state funding with the goal of increasing child care capacity in Greater Minnesota. You can read more about the bills in our handout: The Child Care Conundrum.

As the bills make their way through the legislative process, it has become apparent that some legislators do not have a clear understanding of the full scale of this issue and its impact on Greater Minnesota communities. Some metro-area legislators have even told us that they “just aren’t hearing very much” about the problem, at least not as it pertains to economic development in Greater Minnesota.

We know that the child care shortage is indeed a big problem in Greater Minnesota. You have told us about the businesses that won’t expand because there are too few child care providers in your area or the families who opted not to relocate to your city because there is no one to watch the kids while the parents are at work. We need you to share those same stories with our lawmakers.

How you can help:  Write a letter or email to Governor Tim Walz, House Speaker Melissa Hortman and Senate Majority Leader Paul Gazelka explaining how the child care shortage affects businesses and economic growth in your community. Please send the letter by no later than Thursday, March 28.

Elements to include in the letter or email:

  • Address it to Governor Tim Walz, House Speaker Melissa Hortman and Senate Majority Leader Paul Gazelka (see contact info below).
  • Explain who you are and how you and your city/business/organization are involved in the child care issue.
  • Share how the child care shortage impacts your city/business/organization, with a focus on the economic development aspect.
  • Use specific examples! (i.e. a business that is reluctant to expand in your community, the struggle to keep existing providers or encourage new ones to open a child care business, the local economic impact of parents not being to be in the workforce, etc.)

Contact info:

Governor Tim Walz
130 State Capitol
75 Rev Dr. Martin Luther King Jr. Blvd.
St. Paul, MN 55155
Email contact form

Speaker of the House Melissa Hortman
463 State Office Building 
St. Paul, MN 55155
rep.melissa.hortman@house.mn

Senate Majority Leader Paul Gazelka
95 University Avenue W.
Minnesota Senate Bldg, Room 3113
St. Paul, MN 55155
Email form

Send us a copy: Please send a copy of the letter or email to us at CGMC_Communications@flaherty-hood.com.

Enlist others! Share this email with other businesses, organizations and leaders in your area and encourage them to write letters as well.

Let’s make sure no lawmaker can say that they haven’t “heard enough” from Greater Minnesotans about this problem!

If you have any questions, please contact GMNP and CGMC lobbyist Scott McMahon at shmcmahon@flaherty-hood.com or 651-225-1908. Thank you!

Gov. Tim Walz unveiled a $1.27 billion bonding proposal this week. The package of capital improvements includes $350 million for transportation, $300 million for projects at the University of Minnesota and Minnesota State, and $150 million for housing. You can read the full list of proposed projects here.
 
While various CGMC priorities receive funding in the proposal — including the Greater Minnesota Business Development Public Infrastructure (BDPI) Grant Program, wastewater infrastructure programs, and grants to local governments for road and bridge improvements — many of the proposals fall short of what is needed to address the various infrastructure challenges in Greater Minnesota.
 
The Governor proposed $67 million for Public Facilities Authority (PFA) programs: $40 million for the Water Infrastructure Fund, $22 million for Point Source Implementation Grants, and $5 million for the Clean Water and Drinking Water Revolving Funds. In making this proposal, the Governor has assumed that the $59 million in PFA funding which was included in last year’s bonding bill but is currently tied up in a lawsuit will be resolved before this bill moves forward. The CGMC is advocating for legislation that would provide $128 million in funding for the PFA water programs. If the Legislature is able to resolve the dispute over the money that is being held up from last year’s bonding bill, then the Governor’s PFA proposal is only $2 million less than the CGMC’s request.
 
The Governor’s bonding proposal of $3 million for BDPI would likely not be enough to fund the program through FY2021 due to the program’s popularity and high demand for the funds. In order to ensure cities can continue to access this successful program, the CGMC is seeking $20 million in BDPI funding.
 
Gov. Walz’s bonding plan also includes $100 million each for the Local Bridge Replacement Program and the Local Road Improvement Program. While this funding could help cities in Greater Minnesota address critical transportation infrastructure needs, these two programs have often been used to earmark projects in the metro area, leaving little for communities outside the Twin Cities.
 
Following the release of the Governor’s bonding proposal, Senate Capital Investment Committee Chair Dave Senjem (R-Rochester), who has not held a committee meeting this session, said if the Senate were to pursue a bonding bill at all, it would be closer to the $265 million amount included in the state’s November budget forecast. In the House, Speaker Melissa Hortman (DFL-Brooklyn Park) commented that she would prefer a $3 billion bonding bill, but will put a proposal together closer to half that.  

For Immediate Release
Contact: Julie Liew, jlliew@flaherty-hood.com
PDF version

Below is a statement from CGMC President and Bemidji City Council Member Ron Johnson on Governor Tim Walz’s budget proposal:

“The Governor’s budget proposal makes key investments that will go a long way toward strengthening Greater Minnesota communities.

“City leaders have long been seeking to bring the LGA program back up to its 2002 high-water mark, and the Governor’s proposal would finally get us there. We’re grateful that Gov. Walz recognizes the vital role LGA plays in making sure that all Minnesota communities can continue to provide the same great opportunities to work, raise a family and start a business. We’re hopeful the Legislature will follow the Governor’s lead to restore funding for this critical program.

“I also want to thank the Governor for acknowledging other important issues that impact Greater Minnesota. Not a day goes by when I don’t hear from a constituent about the need for better roads, so it’s encouraging that Gov. Walz is exploring ways to put additional revenue into our state transportation system. Child care is another issue that in recent years has emerged as one of the top impediments to economic growth in rural communities. I’m glad to see that the Governor’s budget plan includes funding to help address this need.

“I look forward to joining other city officials to work with Gov. Walz, legislative leaders and our local legislators to make sure that Greater Minnesota’s priorities continue to be a major focal point of discussions and are hopefully included the final budget.”

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Although many people understandably canceled their registrations due to the subzero temperatures and icy road conditions, more than 50 city leaders from across the state still made the trek to St. Paul for Legislative Action Day on Wednesday. Thank you to everyone who helped make our annual “day at the Capitol” a success!
 
The day kicked off with a welcome from CGMC President and Bemidji City Councilor Ron Johnson and a legislative update from CGMC Executive Director Bradley Peterson, followed by presentations on our top issues (LGA, water infrastructure, child care, the Greater Minnesota Business Development Public Infrastructure Grant Program and transportation) by CGMC staff.
 
After the crowd enjoyed lunch and listened to Gov. Walz’s speech, they spent the rest of the afternoon meeting with legislators. Although much of the state was shut down due to the weather, offices at the State Capitol remained open. The cancellation of most of the legislative committee hearings that day ended up working out in our favor as CGMC members were able to get more time than usual to talk to their legislators about important issues. A copy of the lobbying packet that was given to CGMC members and shared with legislators can be found here.
 
As is CGMC tradition, the day was capped off with a legislative reception and dinner at Mancini’s, where a bipartisan mix of more than 70 legislators representing both rural and urban districts mingled with CGMC members over a meal of steak or walleye.
 
You can see more photos from Legislative Action Day here.

Thank you to everyone who attended the CGMC Fall Conference last week at Arrowwood Resort & Conference Center. More than 100 city leaders representing 50 cities attended the conference — setting an attendance record for the second straight year!

The conference kicked off Thursday afternoon with a presentation by Minnesota Management and Budget Commissioner Myron Frans, who shared insights into his past eight years as a member of Gov. Dayton’s administration and the ups and downs our state budget faced during that time. He also provided information on the state’s current economic outlook and what could be in store for the budget in the near future. You can read Frans’ presentation here.
 
Following Frans’ presentation, we delved into a panel discussion on the rural/urban divide and the role city leaders can play in helping to bridge the gaps between the various and diverse communities in Minnesota. Panelists included Ben Schierer, mayor of Fergus Falls; Suzanne Hilgert, mayor of Olivia; Peter Lindstrom, mayor of Falcon Heights, and Brad Tabke, former mayor of Shakopee and a newly elected state representative. The panelists shared examples of ways they have learned from leaders in other parts of the state and discussed the issues in which they wish there was better understanding between rural and urban communities. Conference attendees also participated in small group discussions where they brainstormed ideas on steps they can take within their cities to help bridge the rural/urban divide.
 
With the conference being held just a little over a week after the midterm elections, it would not have been complete with a good ‘ole CGMC election recap. CGMC Executive Director Bradley Peterson provided in-depth analysis of the 2018 election results — particularly the race for governor and the Minnesota House — and what they could mean for CGMC priorities and other issues in the upcoming legislative session. You can read Bradley’s presentation here.  
 
After the election analysis, we welcomed several legislators for a panel discussion on one of the most critical issues currently impacting Greater Minnesota: the child care shortage. Nicole Griensewic Mickelson, executive director of Region Nine Development Commission and president of the Greater Minnesota Partnership, moderated the discussion featuring Sen. Kent Eken (DFL-Twin Valley), Sen. Mark Johnson (R-East Grand Forks), Sen. Erik Simonson (DFL-Duluth) and Rep. Joe Schomacker (R-Luverne). You can watch video of the discussion here.
 
Annexation is another important topic explored at the conference. CGMC lobbyist Elizabeth Wefel informed attendees about some looming concerns, particularly the possibility that the CGMC and cities may need to play defense on legislation being proposed by township groups that could thwart cities’ ability to pursue annexations. You can read Elizabeth’s Power Point presentation here.
 
In the evening, attendees enjoyed a cocktail reception and dinner followed by an excellent presentation by Emmy-award winning reporter Tom Hauser of ABC 5 Eyewitness News. A veteran political reporter, Hauser shared his take on the national and state election results and some of the issues that could be on the horizon in the future.
 
Friday morning kicked off with a presentation/discussion led by Brandon Fitzsimmons, a labor and employment attorney with Flaherty & Hood, on how to effectively evaluate the performance of city administrators and managers. Waite Park City Administrator Shaunna Johnson and Mayor Rick Miller shared their stories on this issue and provided advice on how to help performance evaluations run smoothly. You can read Brandon’s Power Point presentation here.

In addition to speakers and presentations, the conference also included a membership meeting Friday morning during which members discussed and adopted the CGMC’s 2019 legislative policy positions. To review the adopted positions, click on the following subject areas:

Members also discussed the CGMC’s legislative priorities for 2019 and learned about our initial messaging and strategy plans for the upcoming legislative session.

Thanks again to everyone who attended our 2018 Fall Conference. We look forward to seeing you again at our next CGMC event – Legislative Action Day on Jan. 30 in St. Paul. We will send out registration information for Legislative Action Day soon!

Registration is now open for the CGMC Fall Conference! The conference will be held Nov.15-16, 2018 at Arrowwood Resort & Conference Center in Alexandria and will feature presentations, discussions and speakers on a number of important topics. The packed agenda includes:

  • Luncheon presentation by Myron Frans, commissioner of Minnesota Management and Budget
  • Keynote dinner featuring Tom Hauser, chief political reporter for ABC5 Eyewitness News
  • Legislative panel discussion on child care
  • 2018 election recap and analysis
  • A discussion featuring Greater MN and metro-area elected officials who are working to bridge the rural/urban divide
  • Presentation on annexation and why could be a significant issue in the next legislative session
  • Full membership meeting to discuss and adopt the CGMC’s policy positions and priorities for the upcoming legislative (it’s critical that your city lend its voice to this discussion!)
  • …and more!

CONFERENCE DETAILS
See this CONFERENCE AGENDA & VENUE INFORMATION for full details.

REGISTER TODAY!
Please register online at greatermncities.org/FallConf18. The deadline to register is Nov. 7. 

HOTEL INFORMATION
* Please note that attendees are responsible for their own hotel reservations.*

Arrowwood has a block of rooms reserved for CGMC Fall Conference attendees at a discounted rate of $94 (plus tax). Call Arrowwood at 320-762-1124 by Nov. 1 to book a room under the CGMC’s block.

Note: There are plenty of rooms available at Arrowwood on the night of Nov. 15, but only a limited number of rooms are available on Nov. 14 (the night before the conference). In order to accommodate those who wish to come to Alexandria on Nov. 14 (and may be unable to stay at Arrowwood), we have reserved a small block of rooms for the CGMC at Hampton Inn & Suites in Alexandria. The cost is also $94. Call Hampton Inn at 320-763-3360 by Oct. 29 to make a reservation (rooms are available both Nov. 14 and Nov. 15).

QUESTIONS?
If you have any questions about the conference, please contact Julie Liew at jlliew@flaherty-hood.com or (651) 259-1917.

Newly elected CGMC President Ron Johnson was recently featured in an article in Prairie Business, a monthly magazine that focuses on business and economic development issues pertaining to Minnesota, North Dakota and South Dakota.

In an interview with editor/reporter Tom Dennis, Johnson discussed his nearly two decades of service on the Bemidji City Council, his long-time involvement with the CGMC (including the fact that he has only missed one CGMC conference in 18 years!) and the important role the CGMC plays in keeping Greater Minnesota strong. Johnson also spoke at length about how many of the issues that the CGMC works on – such as LGA, child care and transportation – have a major impact on economic development and business growth in Greater Minnesota.

For Immediate Release
May 30, 2018
Contact: Julie Liew, jlliew@flaherty-hood.com
PDF version

Below is statement from CGMC President and Granite Falls Mayor Dave Smiglewski regarding the passage of the 2018 bonding bill.

“We are excited that Gov. Dayton has announced that he will sign the 2018 bonding bill into law. This bill includes critical funding for clean water infrastructure grant and loan programs, transportation projects, economic development initiatives, colleges and universities and other numerous projects that are important to Greater Minnesota cities.

“We would like to thank Sen. Senjem and Rep. Urdahl for crafting a balanced bonding bill that recognizes infrastructure needs across the state. We are grateful that our legislators and Gov. Dayton were able to put their differences aside and pass a bonding bill that funds vital projects, creates jobs and invests in a better future for our communities.

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The Coalition of Greater Minnesota Cities is a nonprofit, nonpartisan advocacy organization representing 97 cities outside of the Twin Cities metropolitan area. The Coalition educates legislators about issues important to Greater Minnesota. Visit the CGMC online at greatermncities.org and follow us on Twitter @greatermncities.

As has become recent tradition for the CGMC, we will be holding an end-of-session lobby day and ice cream social to make a final push for our top priorities in the waning days of the legislative session. The event, which will be held in St. Paul on Wednesday, May 9, will give Greater Minnesota city officials and other community leaders a chance to meet with legislators and demand that they pass bills that address CGMC priorities such as LGA, wastewater infrastructure and child care.

The tentative schedule for the day is as follows:

  • 10:30 a.m. – Legislative update and messaging (Room 500 North in the State Office Building, located across the street from the State Capitol)
  • Afternoon – Meetings with legislators (attendees should make appointments with their own legislators; we may also ask some attendees to participate in additional meetings with key legislators)
  • 2-3 p.m. – Ice cream social with legislators and legislative staff (L’etoile du Nord Vault Room in the Basement of the State Capitol)

Lobby Day is FREE to attend, but we ask that you register at greatermncities.org/IceCream2018 by Monday, May 7 so that we can coordinate meetings. Free parking is available at the Flaherty & Hood office located at 525 Park St. in St. Paul, just one block from the State Capitol, as long as you print off this parking pass (which is good only for May 9) and put it on your dashboard.

We hope to get as many city officials to attend as possible! Please share this Lobby Day Flyer and encourage other city officials and staff to join us. If you have any questions, please contact Julie Liew at jlliew@flaherty-hood.com or 651-259-1917.

For immediate release
Feb. 15, 2018
Contact: Julie Liew, jlliew@flaherty-hood.com
PDF version

Legislature needs to build on progress for Greater Minnesota
LGA, infrastructure, child care among issues that demand attention this session

ST. PAUL—As the Minnesota Legislature prepares to head into session next week, Greater Minnesota city leaders are urging lawmakers to put aside the growing partisan divide and focus on the “bread and butter” issues that keep communities across the state healthy.

“The Legislature has a strong opportunity to address key issues like Local Government Aid funding, infrastructure repairs and the child care shortage. The greatest danger this session is that legislators will squander this moment of economic strength in our state,” said Bradley Peterson, executive director of the Coalition of Greater Minnesota Cities (CGMC), during a pre-session conference call with statewide media this morning.

“Legislators have a prime opportunity to build on progress made over the last couple of sessions. They can’t let partisanship or the distraction of the upcoming elections stand in the way of getting work done,” he said.

David Smiglewski, mayor of Granite Falls and president of the CGMC, added, “As city leaders and as Minnesotans, we have to demand that they stay focused, buckle down and do their jobs.”

Tax bill talks must include LGA

Leading into the session, legislators have been vocal about the need for tax bill to address issues that have sprung up due to the recent federal tax overhaul. Peterson said this focus on taxes creates an opportunity for the Legislature to address Greater Minnesota cities’ needs by passing an increase in Local Government Aid (LGA). The CGMC is seeking a permanent $30.5 million increase, the amount needed to bring LGA back to its 2002 high-water mark.

“If legislators are serious about passing a tax bill, it must include LGA,” Peterson said.

Ron Johnson has served for 18 years on the city council of Bemidji, a growing community for which LGA is particularly important because nearly half of property in the city is tax-exempt. He has seen LGA funding ebb and flow through the years and says it has a direct impact on the health of his community.

“Our city is prudent — we squeeze extra mileage out of our vehicles and try to be mindful about the amount our residents pay in fees and taxes — but we have necessary expenses. Nothing costs the same as it did in 2002 when there was more LGA to go around,” Johnson said.

The 2017 Legislature passed a modest $15 million LGA increase, which Bemidji used to hold down its property tax levy. Other communities used the extra funds on needs like fire equipment or park improvements, while numerous cities found that higher employee health insurance costs more than ate up any LGA increase.

If the Legislature passes the desired $30.5 million increase, Johnson said his city has discussed hiring a community development director — a position eliminated due to LGA cuts in the mid-2000s — to help take advantage of opportunities for economic growth. For Granite Falls, Smiglewski said an LGA increase would likely be used to replace outdated equipment.

“We have a list of needs a mile long — and we’re not talking about $100,000 waterfalls here,” Smiglewski said.

Costly water infrastructure upgrades can’t wait

Due to aging infrastructure and new water quality regulations, hundreds of cities in Greater Minnesota are currently faced with having to invest millions in expensive upgrades to their wastewater and drinking water facilities. The CGMC is requesting $167 million in bonding for state grant and loan programs that help cities meet these astronomical costs.

Little Falls is among the cities relying on a bonding bill to pass this year. The city needs to renovate its wastewater treatment plant, a project estimated to cost more than $17 million. It is currently on the list to receive a $7 million grant through the state’s Point Source Implementation Grant Program, but that money will only come into fruition if the program is funded in the bonding bill.

“If we don’t receive grant funding, our rates will nearly triple,” said City Administrator Jon Radermacher. “We have no choice but to upgrade our plant, so this funding is absolutely critical. There is no question Little Falls and other cities in our position need the Legislature to pass a bonding bill with substantial funding for water infrastructure.”

Budget constraints force cities to take a slow path on street repairs

Another infrastructure concern that has dogged cities for years is the struggle to keep up with street repairs and maintenance. The CGMC is seeking $50 million for city streets, divided equally between cities with populations greater than 5,000 and those under 5,000.

The city of Granite Falls has identified at least 27 city blocks that need be rebuilt or overlayed, a list that grows each year. Due to budget constraints, the city plans to fix only six blocks in 2018, which is estimated to cost $927,000. In contrast, the city received only $24,635 in city-street funding through the Small Cities Assistance Program, which the 2017 Legislature funded at $8 million over two years.

“Our ‘to-do list’ is long and what can actually afford to do is surprisingly short,” Smiglewski said. “We can only do a block or two here, a block or two there. It’s not very efficient.”

Cities with populations over 5,000 receive some funding through the Municipal State Aid Street (MSAS) system, but Johnson says larger cities — particularly regional centers like Bemidji, whose daytime population nearly doubles — need more resources.

“At our rate, we aren’t keeping up,” Johnson said, noting that his city is able to budget for about one mile of street repairs a year. “We try to repair the worst, but we should be doing much more.”

Child care shortage needs attention

In addition to advocating for funding for LGA and infrastructure, the CGMC also wants legislators to pay closer attention to the growing child care shortage in Greater Minnesota. For many communities, the lack of child care has become a serious barrier to economic growth.

As a father of a 3-year-old with another child on the way, Radermacher has first-hand knowledge of the problem. When he was offered the city administrator job a couple years ago, he said the “very first question” he asked was if there child care was available in Little Falls. Ultimately, he had to live away from his wife and child for three months until they were able to obtain child care in the city.

According to a needs assessment performed by First Children’s Finance, Little Falls currently has a need for 144 more child care spots, a number that jumps to 475 when counting the adjoining zip codes. Other cities in Greater Minnesota have reported similar deficits.

“We are on the cusp of a real critical issue here,” Radermacher said. “I know people who won’t take a job because they can’t find child care. Businesses want to come here or expand, but it’s hard to do that when the workforce has child care needs.”

The CGMC is supporting legislation that provides funding to the state’s initiative foundations to encourage more in-home child care providers. It also hopes the Legislature will further explore the causes of the shortage and review whether there are any onerous or unnecessary regulations that may be preventing people from entering into the child care businesses.

“The child care shortage is a complex issue and it’s not going to be solved in one session,” Peterson said. “Legislators need to know that this is not just a family issue, it’s also an economic development issue.”

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The Coalition of Greater Minnesota Cities is a nonprofit, nonpartisan advocacy organization representing 96 cities outside of the Twin Cities metropolitan area. The Coalition educates legislators about issues important to Greater Minnesota. Visit the CGMC online at greatermncities.org and follow us on Twitter @greatermncities.