The Johnston City Council recently received an update on plans for constructing a new trail or “Side-Path” on the east side of NW 86th street between NW 54th Ave. and NW 62nd Ave. The project has been included in the City’s capital improvement plan, and bids are expected to be solicited sometime in November. Construction would be expected to begin in the spring of 2021. One of the technical challenges of the project involves the relocation of utilities. The familiar pine trees adjacent to the road and neighborhood would be removed and replaced by a landscaped berm. Construction costs are currently estimated to be about $1.6 million.
Detailed plans show how the path would flow from the commercial corner on NW54th Avenue, past Chambery and Windsor Parkway, and then from Crescent Chase to NW 62nd Avenue. From there, users could connect to the NW 62nd Avenue trail and also the trail along Beaver Creek to NW 70th Avenue and the water trail access point. At Windsor Parkway, users could cross NW 86th and connect with the Greenwood Hills Park trail intersecting with Long Meadows Drive.
Construction of the new water trails access point at Lew Clarkson Park is also underway. Beaver Creek needs some water for navigation, but the access point is expected to open by the end of November, 2020. Below is a panoramic view of the new access point as viewed from Lew Clarkson and including the Terra Park trail access.
The Johnston City Council recently approved the Thrive 2040 Comprehensive Plan. The document covers a wide range of topics including land use, natural resources, transportation, housing, economic development, utilities, and parks, trails and recreation. Does this mean the plan is set in stone for 20 years? Absolutely not. Many things affect city planning and communities must be prepared to adapt to new factors including market conditions, changing demographics and evolving landowner goals. Two possible changes to the new plan are already under consideration: one involves a request to increase the amount of high density housing development south of Windsor Parkway and west of NW 86th Street, and another would make a minor modification to a property on the northeast corner of NW Beaver Drive and NW 66th Avenue – converting it from commercial to residential.
These proposals emerged late in the Thrive 2040 planning process. Rather than make a substantive last-minute change, the City opted to defer consideration until after the main plan was adopted. Now that the Comprehensive Plan has been approved, the City will consider proposed amendments to the plan, ensuring adequate opportunities for public comment concerning the proposed changes.
Planning is an ongoing process and every property owner, residential or commercial, should be prepared for change and be ready to adapt.
Photo From: Impact7G
Impact7G, an Iowa environmental services, planning and consulting firm, is considering a move to Windsor Office Park in Johnston.
On November 16, 2020 the City Council will review a development agreement with the company to construct an 11,000 square foot office on lot 10 of Windsor Office Park (8951 Windsor Parkway). The estimated value of the project is $2.1 million, and the agreement would provide financial assistance in the form of a forgivable loan of up to $245,000.00. The office building is to be used as the corporate headquarters office for the business. If approved, construction is expected to be completed by September, 2021.
Impact7G provides a diverse portfolio of environmental services, and their team includes environmental scientists, planners, geologists, biologists, foresters, drillers, geographic information system analysts, and regulatory specialists. We look forward to having them in the community. Welcome!
UPDATE – November 5, 2020
Following months of work and a final review of recent comments received about the Thrive 2040 – City of Johnston Comprehensive Plan, the Johnston City Council formally adopted the plan at their meeting on November 2, 2020.
The Johnston Economic Development Corporation submitted our final review and comments in a September 15, 2020 memo to the City Council (available here). JEDCO supports many elements of the plan including changes in certain land use categories, the goal of maintaining a balanced housing supply with housing available for people at all income levels, the goal of maintaining a competitive financial incentive policy and economic development toolbox, and continued investments in community amenities that add to the quality of life for our workforce and residents.
A community comprehensive plan is a living document that is not fixed for the next 20 years. Circumstances and markets change. Developers, residents and property owners will seek amendments to the plan. And there are many topics that will be subject to ongoing planning by the City. Here are a few things to look for in the next year.
- A Johnston Broadband Visioning plan will be conducted by the City with the assistance of JEDCO member HR Green. The process will assess community access to broadband telecommunications services and develop a vision for future access to high speed bandwidth.
- The City will soon undertake an updated community and business survey to gather input from residents and business owners about City services and community needs.
- The annual process of developing the City’s Capital Improvement plan is just beginning. Draft plans identify the following as key projects:
- Completing the Town Center intersection and NW 62nd Ave. and Merle Hay Road
- Completing the reconstruction of NW 54th Ave.
- Reconstructing the intersection of Johnston Drive and Merle Hay Road to facilitate the Ignit recreation center project
- Constructing the NW Beaver Drive overlay from Merle Hay Road to NW 66th Ave.
- Constructing a new trail on 86th Street between NW 54th Ave. and NW 62nd Ave.
- Making improvements to Lew Clarkson park and further developments for the Beaver Creek Water trail
Community development and planning is an ongoing process and the items highlighted here represent only a portion of the scope of work that occurs on topics ranging from sewer and water infrastructure to housing to parks and amenities.
The September 2020 City of Johnston Building Permit report shows that investments in commercial projects totaled nearly $1.7 million through the first three quarters of the calendar year. Investments in single family housing development led all categories at more than $14 million, followed by multi-family projects ($5.2 million) and townhomes ($2.2 million). New investments are in the pipeline, including the following:
- Setpoint Mechanical LLC is planning for a new 8,861 square foot office/warehouse building. The development is located just northwest of the intersection of NW 86th street and NW 54th at 5519 NW 88th Street.
- Donovan Development is moving forward with plans for the development of an 11,500 square foot one-story building with office/warehouse space at NW 59th Avenue and NW Beaver Drive in Johnston. Construction costs are estimated to be $1.2 million. The company and the City have entered into a development agreement that provides economic development grants of up to $85,000.00 for the project.
- Childserve is planning a 3,600 square foot expansion to create a three-story connector between the north and south portions of their campus. The expansion is designed to facilitate the addition of patient rooms and therapy beds.
If you work in the field of economic development, and more specifically if you have an economic interest in the real estate industry, then you know the value of stability in the marketplace. Significant events with adverse economic impacts, such as COVID-19 and a derecho, can have a cascading effect on jobs, families, and the economy generally. That is why it has been important for government, non-profit organizations, and businesses to support activities that collectively create a safety net – to provide some measure of economic stability. It’s one of the reasons JEDCO and the City of Johnston participated in the Small Business Recovery Grant program. Other nationwide support systems such as unemployment benefits, the Paycheck Protection Program and various forms of natural disaster assistance have also been important.
To be sure, these are imperfect systems, and one can debate the effectiveness of various policy alternatives or the extent to which we can borrow from the future to pay for them. But there is no question that they have provided an important lifeline to many during these challenging times. While some programs have ended or are winding down, there are some that will continue for a few months longer. Two of them are designed to help people stay in their homes and businesses by assisting with rent and utility expenses.
Iowa COVID-19 Eviction and Foreclosure Prevention (EFP) Program
The Iowa Finance Authority (IFA) reported last week that rental assistance has been provided to just over 2000 applicants equaling approximately $4.8 million. On the foreclosure side, the EFP Program has awarded nearly $135,000 to 61 applicants. Approximately $15 million in funds remain in the program, which will remain open until funds are exhausted or until December, 2020, whichever comes first.
IFA reports that the program has seen a significant increase in the number of applications being submitted since August 1. On Tuesday, August 4, it was announced that Iowans who have been receiving $600 a week in federal unemployment stimulus benefits may now apply for the rent and mortgage assistance. For more information, visit https://www.iowafinance.com/covid-19-iowa-eviction-and-foreclosure-prevention-program/.
Iowa Small Business Utility Disruption Prevention Program
The Iowa Economic Development Authority (IEDA) recently announced that more Iowa small business owners and nonprofits are now eligible to receive financial assistance with electric and natural gas utility bills. Eligibility criteria for the Iowa Small Business Utility Disruption Prevention Program has been expanded to include utility assistance for eligible small businesses and nonprofits for electric or natural gas service provided between March 17, 2020 and October 15, 2020.
To be eligible, small businesses and nonprofits must have experienced a COVID-19 loss of income. Financial assistance of up to $7,500 is available. Payment’s would be made directly to an applicant’s utility service provider. The program will accept applications through October 31, 2020 or until all funds have been exhausted. The state allocated approximately $14.5 million of federal CARES Act funds for the program when launched in early July.
For more information, visit https://www.iowaeconomicdevelopment.com/Business/energy-recovery or call 515.348.8914 (toll free: 855.300.2342).
Readers are encouraged to share this information with everyone in their various networks. Let’s do what we can to ensure that the individuals and businesses in need of this assistance get connected with these resources. It is the type of help that can increase economic stability for the benefit of all.
Metronet, an Indiana-based telecommunications company, has sought permission to build out a fiber network to serve the residents and businesses in the Johnston community. The network would serve “no less than 90% of the community, which is currently not being served by a fiber optic provider.” The proposed construction would begin in early 2021 and is projected to take less than a year.
An agreement between the City of Johnston and Metronet was approved by the Johnston City Council at their meeting on August 17, 2020 by a vote of 3-2. No city funds will be used for the project, although the agreement provides for broad access to the use of Right Of Way throughout the community. The agreement does not assure 100% access to high-speed Internet services within city limits, as there may be some locations which cannot be served due to locations being isolated or difficult to serve for financial reasons. However, it will provide an additional choice for many businesses and residents.
JEDCO member Mark McMurphy with ABACI Consulting has been engaged with representatives from Donovan Development to prepare plans for the development of two 11,400 square foot speculative office/warehouse buildings at NW 59th Avenue and NW Beaver Drive in Johnston. Generally, the designs represented assume that the space utilization will be 2/3 office and 1/3 warehouse. The Johnston City Council approved the site plan at their meeting on August 3, 2020.
Beaver Drive continues to be a hub for the warehouse and flex space in the Johnston community.
Snyder and Associates has been hired to develop a master plan for the Iowa Highway 141 corridor from North of NW 70th Avenue in Johnston to Iowa Highway 415 in northwest Johnston.
Synder and Associates will focus on the build-out of the corridor, including right-of-way needs and intersection and traffic control needs. The project will also incorporate and build on work previously and currently being completed by the City of Johnston, City of Grimes and Polk County, additionally involving Iowa DOT District 1.
Polk County and Iowa DOT have partnered together to review traffic operations and safety history, as well as consider the future goals for the Iowa Highway 141 corridor. Local community growth has impacted traffic flows and increased the number of crashes in the area.
To learn more about Snyder and Associates’s plans for this section of the Iowa Highway 141 corridor, visit their website.
The Johnston City Council has approved a development agreement with Ignit Sports and Fitness. Ignit has proposed the construction of a 208,500 square foot recreation facility that will house an indoor track, field house, classrooms, meeting space, and multipurpose courts in addition to outdoor fields and volleyball courts. The project is located on Merle Hay Road directly south of ChildServe, and has a projected assessed value of $18-22 million. The project will generate an estimated $4.9-$5.5 million in property tax increment and is expected to attract 175,000 annual visits to the facility which will further the City’s goals to revitalize and redevelop the Merle Hay Road Gateway area.
The deal is an example of a public-private partnership with many facets including a shared utilization agreement for the benefit of Johnston residents, and infrastructure improvements that make the project feasible for the private company. The City of Johnston Parks and Recreation Department plans to expand programming offerings to include fitness classes, open gym space, recreational leagues and other activities in the Ignit facility for an annual cost paid to Ignit. The City of Johnston also plans to construct a city park and regional public infrastructure improvements to the Gateway, as well as an extension of Johnston Drive west of Merle Hay Road to the planned city park. The city will also construct a regional storm water detention basin. The plan calls for the import and placement of 262,300 cubic yards of soil at an estimated cost of nearly $3.3 million.
Ignit plans to begin construction this fall with intentions for the facility to be complete by April of 2022. City public infrastructure improvements are intended to follow a similar construction timeline. Paired with the Town Center project, there are significant redevelopments happening on Merle Hay Road! Watch for updates on this project.
The City of Johnston has just released a clean draft of the 2040 comprehensive plan. This follows months of community engagement and planning disrupted by the coronavirus pandemic. The comprehensive plan serves several purposes, including the following:
- A guide for current and future land uses – a “road map,” if you will – that can inform citizens, landowners and developers about how certain land areas should be used and how different land uses should reasonably transition from one to another. For example, a simple goal would be to prevent incompatible uses to be next to each other, such as heavy industry and single-family homes. Another example is how land for housing would transition from lower density to higher density uses.
- A strategic economic development plan for the city to lay out the main goals, policies and implementation initiatives that will address issues such as housing, transportation, natural resource use, parks and recreation and of course, land use.
If you have participated in any of the engagement discussions, the future land use categories and the proposed land use for several focus areas will be very familiar. We strongly encourage members of the development community to go to the City’s Thrive 2040 engagement page. Download the draft report, review it and add your comments. There is a comment text box provided for every few chapters. Be sure to view the “open house boards” – particularly boards 3-5. If you are planning to develop anything in Johnston in the next 5-10 years, we encourage you to provide your input. Watch for additional updates regarding the 2040 comprehensive plan.
Join a Virtual Chat. On Wednesday, August 26, 2020, from 5:30 to 6:30 p.m., City staff and the consultant team will be available to participate in an online interactive question and answer session regarding the draft Thrive 2040 plan. Drop-in anytime between this hour to ask questions or discuss any aspect of the draft plan.
To take part in the event, you must register here.
In an effort to keep the Des Moines metro economy moving forward, many prominent local businesses and organizations have come together in a collaborative effort known as BEST of Iowa (Business Expansion and Strategic Trends). Composed of local organizations such as MidAmerican Energy Company, Alliant Energy, Black Hills Energy, Iowa Area Development Group and the Iowa Economic Development Authority, BEST of Iowa serves as a statewide business retention and expansion program. Through in-depth interviews with local employers the use of online surveys to collect data, BEST of Iowa aims to learn as much as possible about how businesses are positioning themselves for the future and in their local communities.
Johnston Economic Development Corporation (JEDCO) has a history of working closely with representatives from BEST of Iowa to gather information and facilitate face-to-face meetings with Johnston-based employers such as Corteva Agriscience (formerly Dow DuPont/Pioneer), John Deere Financial, DLL Finance and others. However, these activities are now more complex due to the COVID-19 pandemic, arguably at a time when this data is needed most.
“There has never been a better time than right now to think differently and to elevate existing business call programs. The information received from calls will guide economic recovery and growth efforts to help position communities for long-term sustainable growth” said Kathryn Kunert, Vice President, Economic Connections and Integration, MidAmerican Energy
COVID-19 has made it increasingly important to focus on business retention efforts in Johnston and the Greater Des Moines region, and the leaders of the BEST of Iowa program have been working with the University of Northern Iowa and Blane Canada to revamp the data collection process in order to adequately address several topics related to COVID-19 and to understand current and future impacts on local businesses and industry leaders. New topic areas include operations, supply chain, infrastructure, workforce, recovery, and sustainability. In addition to these new topics being covered, the BEST of Iowa program will work to help communities overcome obstacles and provide possible find alternatives for in-person meetings, such as a web or video conferences.
JEDCO is pleased to be a part of this process, and we look forward to continuing our role to promote development in Johnston, especially during these challenging times. For more information please follow us on Twitter @growjohnston and sign up for our monthly electronic newsletter.
The Greater Des Moines Partnership, Polk County and the City of Johnston have completed the review of applications for assistance from area businesses affected by the COVID-19 closures and restrictions. Eighteen Johnston businesses are expected to receive financial assistance awards of up to $5,000. The total amount being granted is $85,000.00. Businesses were required to demonstrate the adverse impact of COVID-19. Businesses which had already received support from the Iowa Economic Development Authority were not eligible to participate.
Applications for assistance were accepted until May 20, 2020, and then were reviewed by Iowa Center for Economic Success. The initiative was organized by Polk County, the Greater Des Moines Partnership and the City of Des Moines with financial support coming from area cities (including Johnston and Urbandale). The Johnston City Council had pledged up to $50,000.00 to the effort, and those funds were matched by resources from Polk County and private sector contributors. JEDCO also contributed $2,500.00 to the cause.
There were fewer applicants and awards than had been anticipated. “The good news is that almost all of the recipients qualified under the program received the maximum award amount, and that several Johnston businesses have already received support through the Iowa Economic Development Authority programs.”, said Adam Plagge, Economic Development Manager for the City of Johnston.
There was some concern that some smaller businesses were falling through the cracks. “But it seems that businesses that needed some help have received it through the combination of the federal, state and local programs. JEDCO was happy to be a contributor to the effort.”, said Phil Dunshee, Executive Director for the Johnston Economic Development Corporation.
A listing of area businesses which received assistance will soon be published. Follow us @growjohnston on Twitter and here at growjohnston.com for updated information when it becomes available.
Several important and very visible infrastructure projects have continued to advance in Johnston despite the disruptions created by COVID-19. The Hansen Company has been hard at work building the new City Hall at Town Center. The exterior limestone panels, wood, and windows have been installed, and paving for the parking lot is underway. On the interior, plumbing, electric, and mechanical systems have been placed making it possible to begin installing drywall. You can expect this project to be completed later this summer. Upon completion, the existing City Hall will be demolished to make way for the upcoming Johnston Town Center.
The associated reconstruction of the Merle Hay Road and NW 62nd Ave. intersection continues to advance, as does the reconstruction of NW 54th Ave. between NW 86th Street and NW 100th Street.
Broadband Study Initiated – The City is taking the initial steps to conduct a visioning study and needs assessment for improving the community’s broadband telecommunications infrastructure. This is not just an issue for rural communities, and it would not be an overstatement to say that hundreds of people who would ordinarily be working in a Johnston office building or corporate center have been working remotely from home. High speed Internet is a baseline for both businesses and households.
The City has issued an RFP for consulting services to conduct the needs assessment which is to include a review of current services, a community and business survey and a review of the City’s public sector infrastructure. The consultant will also be asked to help develop a community vision for improving broadband services. Proposals are due July 1, 2020. The City has budgeted up to $25,000.00 for the study. Click here for more information.
The next significant infrastructure project ahead is the extension of sewer and water services to the NW annexation area, part of the larger Beaver Creek Development Region. The sanitary sewer segment extending services to the Beaver Creek golf course area is planned for the 2021 construction year. However, this plan could be affected by pending litigation concerning the delivery of water services. This issue needs to be resolved soon in order avoid a disruption that could delay the extension of services and associated development.
Community Recreation Assets Expand – Community amenities which enhance quality of life do matter when household decisions are made about where to live and when business decisions are made about location and expansion. That is why it is exciting to observe that the new Pioneer Parkway trail will be complete very soon.
Improvements to the Beaver Creek water trail are also just around the bend. At their meeting on June 15, 2020 the Johnston City Council acted to move forward with construction of a new access point at Lew Clarkson park. A ten-foot wide access trail from the lower parking lot at Lew Clarkson to the creek’s edge will be created. A ramp will be cut into the bank to allow for easy water access for canoes and kayaks. On the opposite bank of Beaver Creek a trail access to Terra Park will be constructed. Bids are now being accepted and are due by June 30, 2020. Construction is expected to occur this summer and fall.
Looking ahead to 2021. The NW Beaver Drive overlay project will improve the road from Merle Hay Road to NW 66th Ave. A trail extension is planned in conjunction with this project, and it will provide significant regional trail connections with the Neal Smith trail, Ankeny, the High Trestle Trail and the Walnut Ridge Recreation Area. This is also the year that reconstruction of the Trestle to Trestle bridge is planned, as well as the construction of a new trail on NW 86th Street between NW 62nd Ave. and NW 54th Ave. More health, fitness and recreation opportunities are also associated with the Ignit Sport & Fitness complex and further developments at the “Yard” at Town Center.
Corteva Agriscience and John Deere Financial have long been important figures in the agriculture industry, but they may now be more important than ever as we endure this pandemic. Not only does our food supply depend on companies like these two JEDCO members, headquartered right here in Johnston, but these companies have also both been going above and beyond to take extra measures to remedy COVID-19. As essential businesses, here are some of the many generous deeds Corteva Agriscience and John Deere Financial are taking part in.
Corteva has joined forces with MercyOne in order to increase testing for COVID-19. Corteva has in-house genetic screening technology and trained employees to help these efforts. The testing will have an initial focus local to Iowa but in time may have the ability to spread beyond Iowa borders.
“I am so proud of the members of our team who conceived this initiative and are driving its execution,” said Neal Gutterson, Senior Vice President and Chief Technology Officer at Corteva Agriscience. “Our people have tremendous heart and are extraordinarily dedicated to making a difference in their communities; this is one of many great examples of that. We are honored to collaborate with one of Iowa’s leading healthcare systems to help address this important need.”
MercyOne President and CEO Bob Ritz reiterated that increasing testing capabilities for COVID-19 is critical for both the population’s health and our nation’s ability to reopen the economy.
Corteva is also offering 0% financing on herbicides to farmers and ranchers who may be experiencing hardships during these times. Providing benefits to farmers and ranchers affected by the virus helps ensure the flow of our food supply.
Similarly, John Deere Financial is encouraging its customers to contact them for necessary financial support related to COVID-19. They are also helping local hospitals and utilizing in-house capabilities to fight the virus.
John Deere uses 3D printing technology in their facilities, but they have since put them to use for their local communities during the pandemic. Employees have engineered 3D printing designs to create face shields and no-touch door openers. They have made the designs public to share with other companies with similar capabilities for public well-being.
Along with other protective eyewear previously owned by the company, John Deere has donated this personal protective equipment to doctors and nurses local to Iowa and in Illinois on the frontlines fighting the coronavirus. As a company, they have also initiated a 2-for-1 match to employee donations to local food banks and the American Red Cross.
JEDCO is proud to have membership from companies like Corteva Agriscience and John Deere Financial located in Johnston that are helping our communities through times of hardship. It is wonderful to see that they are not only taking measures to keep our food supply running during this pandemic, but they are also taking the extra steps to use their own property, technology, and money for the greater good to fight COVID-19.
During times of crisis, MidAmerican Energy has not only been taking measures to keep their employees and customers safe, but they are taking the extra step to care for our local communities as well.
As an essential service provider, MidAmerican has pledged to continue providing reliable service for electricity and natural gas that their customers rely on. This includes emergency calls, outages, reported gas leaks, downed power lines, and broken poles. Here are the precautions MidAmerican has been taking for the safety of both employees and customers:
- MidAmerican has changed various workplace practices as a precaution to COVID-19.
- For any customers facing financial hardship, disconnections due to unpaid bills have been suspended. If you are struggling to make ends meet as a result of this pandemic, contact MidAmerican Energy for more details.
- Employees ask questions to customers prior to visits about symptoms, self-isolation, or possible contact with any individuals who have contracted the virus to assess the risk. If the answer is yes and it is an immediate emergency, employees will wear additional personal protective equipment.
- This is unfortunately an opportune time for utility scams. Utility scammers may demand money over the phone by threatening to disconnect services. They may also ask for prepaid money cards and money orders. MidAmerican Energy never asks for immediate payment over the phone by way of money cards and orders, so be aware.
While they are taking care of their immediate customers and employees, MidAmerican has not forgotten about surrounding communities within their service area. The MidAmerican Energy Foundation has donated a staggering $500,000 for COVID-19 relief efforts. While not limited to just one effort, MidAmerican has been focusing on hunger relief and the food crisis so many are facing as a result of this pandemic. They have donated to over 30 organizations to fund local food banks, community foundations, and the United Way. This is part of a longtime effort titled MidAmerican Energy CARES (Community enhancement, Arts and culture, environmental Respect, Education/STEM, and Safety) in which MidAmerican assists year-round to communities within its service areas.
Here at JEDCO, we are so proud to call MidAmerican Energy a member and supporter of the Johnston community. During times of crisis, MidAmerican has exemplified that they are truly invested in the well-being of their employees, customers, and the communities that they live and serve in. Let MidAmerican Energy lead the way for everyone to show that a little bit of help and kindness can go a long way, no matter how big or small.
What is the proper metaphor for the situation in which many business owners and managers now find themselves? How do you describe the territory in between the critical need to get business and the economy moving again, and the need to protect the safety and well-being of the people making the economy function?
Printing and distributing new money to keep businesses and people afloat increases debt and can be the cause of serious, unintended and long-term consequences. Moving people into settings where a highly contagious new virus with many unknown factors is still present can also produce bad, sometimes terminal, results. To borrow a very old term, the most appropriate metaphor seems to be “No Man’s Land.” Many are choosing sides. Out of fear and concern for public health and the safety of family, some wish to continue to keep things closed. Others, whose viability as a company, organization or even household are at stake, wish to get back to work and start earning income again as soon as possible. The space in between is where the solutions must be found.
It’s not an easy problem to solve for many organizations with a business model built on a certain volume of activity. Theaters, stadiums, commercial airplanes, restaurants and bars require certain numbers of customers to break even or make a profit. Impose a 50% capacity rule or require a six-foot “set-back” between customers, and the previous profit and loss calculations just may not work anymore. So, what should a business do as the temporary financial assistance programs begin to expire?
Make a Plan for Alternative Scenarios
It’s tough to plan in the midst of a crisis, but it is a necessary exercise. Based on the current rules that apply to a particular business type, consider the following scenarios.
- What would happen if those rules are extended for an additional one, two or six months? Longer? Do the math.
- What would happen if some rules are relaxed, such as occupancy limits of 50% or 70% of maximum capacity? Or what happens if customer behavior doesn’t return to “normal” after rules are relaxed? Again, do the math.
- Account for changes in the workforce. Will 100% or 50% of employees be available to return to work, and will they feel safe in returning to work?
- Account for changes in the supply chain. Will the resources and materials required to make the product be available, or has there been a disruption in supplies and materials? How much can be produced given alternative conditions?
Companies and organizations must do this planning. Larger companies and manufacturers are already doing this, and resources such as CIRAS at Iowa State University are helping them. Smaller businesses also need to be doing this planning. What business plan or path will provide the greatest opportunity for success? What steps are needed to implement it?
Take Steps to Provide a Safe Work Environment
Federal and state public health officials are publishing and regularly updating guidelines or suggestions for operating safely as things begin to be “reopened”. Review them carefully and decide what the best options are. Here is a short list of recently published information from authoritative sources.
- Reopening Guidance: Iowa Department of Public Health
- Reopening Guidance: Centers for Disease Control (CDC)
- Managing Outbreaks: Iowa Department of Public Health
- Workplace Guidance: Centers for Disease Control (CDC)
- Workplace Guidance-Small Business: Centers for Disease Control (CDC)
- Control and Prevention Guidance: Occupational Safety and Health Administration
- Determining Building Occupant Capacity: Iowa Department of Public Safety
Communicate With Business Partners and Employees
Now is not the time to hunker down and wait for the next proclamation. Make a call or set up a video conference with the appropriate professionals, including the accountants, lenders, employment professionals, attorneys, landlords and business peers. Put the facts on the table and ask for advice and help. They want and need their customers to survive and succeed.
Employees and contractors also need to be part of the conversation. Answer their questions. Ask for their input. Show them what is going to be done to provide for a safe work environment. Explore best practices and options. There is no one “best practice,” so welcome ideas and use a consensus-building approach.
As events unfold, expect to see professional firms and trade associations step forward with legal, human resources, financial and general business advice. For example, here are two specific webinars with companion slide decks and resources published by legal and employment service providers with operations in the Des Moines area.
- Legal and Regulatory Issues: Nyemaster Law Firm Webinar and Insights
- Human Resource Issues: Oasis Professional Employment Organization (PEO) PDF Presentation and Video PPT Presentation
Business owners and managers should ask their affiliated professional service providers to help get them connected with similar privately sponsored but publicly accessible resources. Importantly, share this information with your colleagues, peers, employees and contractors as it becomes available.
The Greater Des Moines Partnership has launched a new resource, DSM Forward with industry specific and business function “playbooks” and an FAQ, which provides a framework for business owners and managers to develop action plans for reopening. These playbooks are not recipes for reopening, but rather are outlines that can be used by individual businesses to make decisions about how various issues will be handled based on their unique characteristics and circumstances.
Do you have a need for more specific information, or do you have suggestion for a topic or issue that should be included in a future DSM Forward playbook? DSM has published a short survey to organize those questions and suggestions.
Reopening is like stepping into a “Nomanneslonde” in many respects. There are many unknowns, but we think it is possible to move the economy forward with thoughtful business planning, care for the health, safety and well-being of everyone at work and in the marketplace, and open and frequent communications with business partners and co-workers. Onward!
Have an idea or best practice for reopening? Share it with us!
Originally published on the Enterprise Iowa blog.
To help businesses assemble the required application information, an “Application Preparation Worksheet” has been developed. The idea is that the applicant would use the worksheet to organize financial information and prepare answers to questions required on the online application. Think of it as a dry run. When ready, the business would log on to the website and complete the online application.
Applications for assistance will be accepted until midnight on May 20, 2020.
The initiative has been organized by Polk County, the Greater Des Moines Partnership and the City of Des Moines with financial support coming from area cities (including Johnston and Urbandale) and from area businesses. The Johnston City Council has pledged $50,000.00 to the effort, which will be matched by resources from Polk County and the private sector contributors. JEDCO has pledged $2,500.00 to the cause as well.
Small businesses, especially those that may not have benefited from other federal or state programs, are strongly encouraged to submit an application. Questions should be directed to the Iowa Center for Economic Success at (515) 283-0940 or email@example.com.
Step back and think about the magnitude of what has happened in the last seven weeks. Here’s a short list: a national pandemic and health crisis, widespread business closures, record unemployment, and unprecedented federal and state assistance for businesses, non-profits, individuals and governments. There have been many bumps along the way, but the response and coordination between government and business that has occurred would not have been thought possible before. Every trade group, association, health care organization, government agency and many, many individuals have marshalled their resources for a common cause – to defeat a virus and to restore a sense of security and normality. Altogether, it is overwhelming.
Everyone in the economic development world has worked to play a part in this by communicating information and connecting businesses and people with the resources and programs that have been created. Many businesses in the service industry – anyone with a business model built around the congregation of people at a place or event – have felt the immediate economic and personal impact of the disaster. Other organizations with a business model more easily adapted to working from home and businesses considered essential just kept on going. It seems inevitable that everyone will feel the pain as the debt for all of this assistance comes due and the residual effects of the disruption ripple through the rest of the economy.
The community of Johnston is home to corporate centers, a military base, and many small businesses and sole proprietors. As an organization charged with supporting business growth in the community, the Johnston Economic Development Corporation (JEDCO) has participated in COVID-19 response and recovery efforts. Without claiming any scientific rigor, the opinions of business owners and operators were sought concerning their status and the extent to which the recovery efforts have helped them in the near term. Nearly 60 responses to an electronic survey were received from businesses representative of the community. The largest group was in the category of 2 to 5 employees, but businesses of all sizes responded, ranging from sole proprietors to larger corporations. Here’s what we learned.
About 55% of the respondents said they had either closed due to government proclamation or were adversely affected by the pandemic. Meaning that 45% of the businesses were able to adapt to the changing situation and keep producing.
Of the businesses that reported adverse effects from the pandemic:
- Less than half applied for an SBA disaster assistance loan, and most of those who applied did not know of the disposition of their application at the time of the survey; apparently little near-term benefit.
- Almost 60% applied for the SBA Paycheck protection program, and most of them had been approved in the first round of funding. Some had applications in, but the program ran out of funds before their applications could be processed. The second round of funding may have helped, but their actual status is not yet known.
- A number of businesses reported that they were being helped by their suppliers and other business affiliates with deferred payments for rent or loans. Responses indicated that in most cases the assistance was provided with the expectation that full payment would be made at a later date.
- Two thirds reported that they had applied for assistance through the state programs. The application window was small, resources were limited, and the volume of applications was high. Based on a review of published award recipients, it appears that only two Johnston businesses have received financial assistance through those channels.
- Survey participants were asked how much they were being helped by the various programs and activities. On a range of zero (no help at all) to 100 (my business will survive and thrive), the average score was 34. For businesses reporting that they were adversely affected by the disaster, the average score was 23.
Phil Dunshee, Executive Director for Johnston Economic Development Corp. and Adam Plagge, Economic Development Director for the City of Johnston provided a presentation of Johnston survey results at a recent Des Moines Economic Development Practitioners conference call. Review the presentation here.
Again, making no claim to scientific accuracy, the biggest aid to small businesses appears to have been the Paycheck Protection Program. While not directly addressed in the survey, it also seems clear that the unemployment benefits being provided to employees furloughed or laid off has substantively benefited the Iowa workforce until employers can call people back to work.
Johnston businesses who participated in the survey identified the following areas where help may be needed in the near term and the coming months.
- Financial assistance to help with overhead. Payroll assistance is one thing, but financial resources to help cover rent, utilities and fixed costs were identified
- Personal Protective Equipment (PPE). Some businesses identified this as a need for being able to reopen when authorized
- One-time property tax relief. Most businesses (93% according to Polk County reports) had already paid their property taxes when the pandemic started. Some are looking ahead to the next payment in September and are hoping for some relief at that time
- Getting the economy restarted. Businesses are concerned about health and safety, but they also want to get back to work and start earning income again.
For various reasons participants in the survey expressed concern about the administration of the financial assistance programs at the beginning of the crisis. The time frames were too tight. Many who applied to the state programs did not receive assistance, and there is a perception that some who received assistance received more than needed.
One More Source of Financial Help
The next, and perhaps final round of financial assistance for small businesses in the Johnston area will likely come from a new program coordinated by Polk County and the Greater Des Moines Partnership with some financial support coming from area cities including Johnston and Urbandale. The details are still being worked out, but the general focus of the program will be small grants targeted toward very small businesses. It is hoped that this program will be up and running sometime during the first full week of May. The Johnston City Council has pledged $50,000.00 to the effort, which will be matched by resources from Polk County and private sector contributors. JEDCO has pledged $2,500.00 to the cause as well. Watch for more information to be posted here and on various partner websites very soon.
The Next Phase of Recovery
Think of all these assistance programs as a short-term disability policy. They are providing critical financial support during the initial period of “disability.” It doesn’t last forever and is intended to get you by for a while. Other survival tactics will need to be employed.
So far it looks like getting businesses restarted is the main theme for this next phase even as the pandemic and the search for treatment continues. The time to prepare for or get started with this is now. Trade associations, development organizations and government agencies are already pivoting in that direction. Here are a few examples:
- Reopening Guidance published by the Iowa Department of Public Health – April 27, 2020
- Guidance for Restaurant Reopening published by the Iowa Department of Public Health – April 27, 2020
- Column by Steve Strauss published by USA Today – April 30, 2020
- Getting Back to Work webinar hosted by Nyemaster Goode, P.C. with support from Community Bankers of Iowa – May 4, 2020
- The Return to Work webinar hosted by Oasis – A Paychex Company – May 1, 2020
Business owners and managers, economic developers and policy makers should take advantage of these opportunities as they determine what the appropriate next steps for reopening will be, once allowed.
The Johnston Economic Development Corporation will continue to do everything we can to help our economy recover from the effects of the COVID-19 pandemic. And on one final note, for the past many weeks your elected officials have been working together and meeting weekly via web conference with the private sector members of JEDCO to engage in all of these mitigation and recovery activities. This includes Mayor Dierenfeld, the City Council and staff, Supervisor Robert Brownell, Senator Brad Zaun, and Representative Karin Derry. We express our thanks to them and to all of the members of JEDCO for their commitment to the Johnston community and the northwest Polk County area. Better days are ahead!
First, we have encouraged businesses and people to apply for the various programs that have been advanced by the state and federal government. After examining the benefits and the requirements, if it makes sense, businesses have been encouraged to apply. Here are a few programs or solutions currently available to businesses. Note: some programs such as the State of Iowa Small Business Relief Fund are no longer accepting applications.
- Individuals affected by required business closures have been able to apply for expanded unemployment benefits.
- Businesses not affected by the required business closures have been encouraged to maintain employment by participating in the SBA Paycheck Protection Program (this is a significant and unprecedented source of financial relief that is intended to help businesses maintain their workforce and capacity to restart when the crisis declines).
- Businesses have been able to apply for other loans through the SBA and grants through the Iowa Economic Development Authority.
- Government at all levels has implemented tax deferral policies.
- Many, many companies are supporting their employees by enabling them to continue to work remotely.
- Businesses that provide services to individuals and other businesses are taking steps to help customers through payment deferrals, waiver of late payment penalties, and, in some cases, payment waivers for two or more months. Check with your suppliers and other business partners to learn what they may be doing to help.
“We’re all in this together” is not just a catch phrase. Everyone is living it, every day.
Second, disaster mitigation and recovery efforts are underway. Johnston Economic Development, our business members and your public officials at the city, county, and state level are working together to identify additional needs and gaps in assistance. JEDCO members, Mayor Dierenfeld, council members and city staff, Polk County Supervisor Bob Brownell, Representative Karin Derry and Senator Brad Zaun, and others have been participating in regular web conference calls, or Connect or Zoom meetings, to compare notes and get the latest “on-the-ground” updates from lenders, developers and businesses about the status of things.
It is likely everyone can agree that not every state or federal program is operating at a peak performance level right now, primarily because the scale of activity is truly unprecedented. The best we can do is show patience and to make the things over which we have control as helpful as possible.
Small businesses should be aware that there is an active discussion about a new public/private partnership to provide financial assistance to companies in Polk County that may not have qualified for any of the federal or state program in operation thus far. Watch for more information about this initiative very soon.
At this writing it appears that our current circumstances will continue … let’s just say for a while longer. In addition to our Coronavirus Response page, we’ve assembled a supplementary document with additional links to some of the most useful information about the collective efforts to prevent the spread of this disease and to find information and assistance for your particular situation. Review these resources to get the answers you need. If you can’t find the answer here, or if you need any type of specific assistance, contact one of your elected officials or send us an email at firstname.lastname@example.org.
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