Surprise City Council Work Session on Business Licensing and Economic Development - September 2, 2025
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All right, good evening.
I'd like to call this work session on September 2nd, 2025 to order.
Madam Clerk, if you could conduct the roll call.
Mayor Sarder.
Present.
Vice Mayor Hastings.
Councilmember Haney.
Here.
Councilmember Greenberg.
Here.
Councilmember Duffy.
Here.
Councilmember Melton.
Present.
Councilmember Judd.
Here.
Thank you, Mayor.
We have a quorum.
Thank you.
Please join me for the Pledge of Allegiance.
Indivisible delivery and justice for all.
Madam Clerk, please read.
Um the microphones sound really weird.
Exactly.
It's echoe in here.
I don't know if it's echoing.
The gentleman in the control room can fix that, but it's really really weird.
Um guy behind the curtain.
Okay.
Yeah, the guy behind the curtain.
But we'll continue.
Please read item number one.
Item number one, presentation and discussion pertaining to the city's business licensing process and fees.
Good afternoon, Mayor, Council.
So Mindy and I are here uh to discuss business licensing.
And you may wonder why community development is participating in a presentation about business licensing, but hopefully our presentation will help answer that for you.
So a couple of weeks ago, um, it was asked of staff to come back and discuss um before council the business licensing process, the fees associated with it, and why we have business licenses.
So we'll start with the purpose of licensing.
And the purpose of a business license is to ensure safe, compliant, and responsible business operations.
So we're really trying to find that balance between the safe operations and protecting our residents when we're issuing a business license.
There are several departments that take a look at the business licenses when they come into the city.
Um public safety is very heavily involved.
Their role is to ensure that businesses are operating in conformance with the city's codes, public safety, health, and welfare.
This is how businesses become known to our economic development team.
So through the business licensing process is where there's a mechanism to connect new businesses to our economic development team for things such as uh the ribbon cuttings and the grand openings that that ED often helps put on.
And then last but not least, there's a tax compliance component to the purpose of licensing.
It aids in identifying taxpayers for the TPTs.
Standard business license timeframes.
We typically receive and issue licenses within about 15 to 20 days.
Days zero through five is where our finance team, spearheaded by Mati Lugo sitting behind me, is looking at administrative completeness.
Did they receive everything?
Is the application complete?
At first glance, do we have everything we need to review this business license and pass it on to the departments for a more comprehensive review?
Days five through 15 are substantive review.
So that is where the departments that are impacted by these business licenses do a deeper dive.
So for instance, again, going back to the assisted living, the sober living homes, that's where in community development we're checking for that compliance with the state regulations, county requirements, building code requirements, zoning, et cetera.
Days 15 through 20, that's the final review.
That is where the business license is outprocessed, payment is received.
And these are just approximations.
Not every business license takes 15 to 20 days, but generally these are the time frames that we're operating within.
There are occasions where a business license takes longer, and we do have some typical things that cause delays.
So that can be an incomplete application.
Maybe we're going back and forth with the applicant for some additional information, something that they didn't provide up front, documentation that was missing to prove their compliance with a state or county entity.
Or we may be awaiting some industry specific licensing or approvals.
Again, we may be waiting to be sure that they get that higher level approval before we issue our city business license.
Reviewing departments, as I mentioned, there are several departments that look at city business licenses.
So each department has a unique role in ensuring the public health and compliance.
Finance, again, they do intake, they manage the workflow of the business licenses, and they are responsible for fee management.
Community development, we are responsible for confirming the zoning.
Also the building safety aspect of any new businesses starting up.
And then, of course, code enforcement can sometimes become a player in cases involving businesses that maybe weren't previously licensed.
So maybe they come to be licensed through the code enforcement process.
Surprise fire medical, they have a fire prevention review and an annual inspection process.
And it is the business licensing process that alerts them to these businesses in our community and ensures that they do those inspections.
So specifically, you can see some businesses that surprise fire medical play pays close attention to.
Again, fire and police rely on these business licenses, especially for home-based businesses.
It's important that they understand when they're responding to an emergency exactly what they're responding to and what they can anticipate to find in that home.
As well as our sober living homes, we keep maps for public safety that they have an ongoing and current list of where those homes are operating for the same reason.
So when they respond, they know is this a home where people are ambulatory, are they not?
Could there be other issues in the home that we need to be aware of for our safety?
Fire risks.
There are several fire risks that could occur within a business.
So they're very concerned about the storage of any flammable materials.
FIRES also looking at electrical systems, sprinklers and alarms, access, and again, prevention and inspection.
We want to prevent any serious hazards before they occur.
And so that's really FIRES role in this process.
This is just a visual of the business licensing process as a whole.
So again, application comes in, goes through the three review phases, fees are due, fees are paid, license issued, and then there's an annual renewal each year.
When we talk about business licensing, I think it's also important to talk about business support, because that is important to the city.
It is a priority in council strategic plan, as you all know.
And as is creating online interactive portals for residents and the business community.
And so I think it's important to note here recently, a presentation was given to this body on Spark Surprise and all the good things that are coming up here on Elm Street.
And so that is just one way that we are continuing to collaborate with small businesses in the city.
And a few other things that we do.
The city actively partners in job fairs, um, city business to business visits, ribbon cutting special events, and then free chamber memberships, as well as memberships with other associations that we um often help with and sponsor.
And then last but not least, business licensing fees.
So the initial fee for a city business license is 168 dollars today.
The annual renewal is half that at 84.
Um, and as it stands today with all the parties that look at at business licenses, that 168 does not recoup costs for us today.
That is our presentation on business licenses in a nutshell.
Uh Mindy and I are here and happy to answer any questions, as well as Andrea and Maddie.
Thank you.
Councilman Greenberg.
Any idea what is that on?
Yeah, I can hear it.
Any idea what the actual cost to the city is for all these different departments to go through every one of these?
Uh Mayor, Councilmember Greenberg.
Uh, we haven't, with the addition of Spark Surprise and the new uh amenities, I guess that we're offering businesses, we need to recalculate that.
So we don't have an exact amount.
Our guess is we're probably between 10 and 30 percent of what we're subsidizing the cost uh to that B.
Okay.
That's currently what we're at.
All right.
I mean, I don't have a problem subsidizing it because I'm all for business in the in the community.
I just was curious if we knew.
No, I don't.
Thanks.
That's all vice mayor.
Real quick, I have a few questions, but I was wondering if Janine could take a second, maybe I know we've talked about Spark Surprise a little bit, and just kind of for those that are you know watching who are obviously interested in this topic, um, how that kind of works into this, and kind of I know it's like a little bit more than just like a couple minute discussion, but just kind of you know, give me a chance to share about what you guys are setting up.
Thank you so much, Mayor and Council.
Um, so I guess the the question is what is Spark Surprise and what is the value and and what are some things that are you know um moving forward?
So Spark Surprise is a new concept of over 15 years, the accessible like the Apple um where we can pair not making.
So it's not always one of those uh two other West Valley you know, obviously we talk about we do have to pay when you're doing it so there is and a small business that would be an impact to the so then during the budget long-term goal.
Um, obviously, we're supporting.
I mean, supporting is you know, kind of a fancy word for subscope for you with you know, being the added question for you said there's some like firements relevant.
So if it's something that's different things we've seen out there, hey again, thank you.
Obviously, do you hear stories again?
Is there really is there a potential with I would love you know the 84 foundation business in our city?
I kind of agree with you.
I'd like to see to make it a little obviously we exist as a service organization, and I remember thank you guys for your presentation.
And I remember the the first kind of exposure had the business licensing is is the going after these illegal sober living homes.
And so it really does serve a very valuable.
So I'm coming.
This is this doesn't mean anything to them, it's just what they do, they take care of it.
But the really command, this is this doesn't mean anything to them, it's just what they do, they take care of it.
But the really small businesses, the guys just starting out are the ones that it impacts the most.
And and I would especially with Spark Surprise getting rid of this is not quite a pure expense, but pretty close.
So if we stop taking a little more revenue, we stop taking a little more revenue with revenue, it doesn't move the needle that much, and then subsequent years it goes to its normal fee of doesn't move the needle that much, and then subsequent years it goes to its normal fee of I think 84 or under 500 is considered a small business.
So it's possible that we could possibly do a graduated scale, depending if it's like a one person working out of their house versus a store opening up like uh the nail slow we just did with you know like 20 employees.
I mean, a sliding scale, I mean, grants are great idea if if we can even get that.
But for somebody who's going into business, if they can't afford 168 dollars, I mean, I hate to see that the residents who aren't in business in Surprise, which is a lot, are subsidizing people who are going into business.
Um so something if you can create a scale uh that it might be more fair.
Uh, but but still, I know businesses fail because they don't plan, they don't have enough capital.
That's all I gotta say.
Councilman Duffy.
Thank you, Mayor.
How many, do you know how many startups we had last year?
Like how many applications?
Just you don't have to be exact.
We have about 5500 right now, killing active.
Okay.
We have about 5500 right now, killing about 5500 active businesses uh that we renewed.
It is a small on the smaller scale of things.
That's total businesses.
So I I don't know the exact number, but it's not a significant amount of the mostly our renewals.
Over here.
But I don't have the I think in our the way it comes in, it doesn't specifically tag if you're one, if you're new or if you're ongoing, it's all of it.
So the best we could to go down and break it up was you know, maybe 100, 200 a year.
So we don't have a great data on that.
My point even asking was I understand the renewal 84.
Yeah, 5,000 businesses.
Yeah, that's revenue.
Am I really worried about revenue off 100 and 168?
I mean, really.
That's like for the first initial year, the 168.
That's not I think the business of trying to make money off someone who's trying to make money to start something.
You know what I mean?
Yeah.
I understand the renewal.
I don't say do it for free, but I what my point is I'm okay with what Councilman Hastings, Vice Mayor Hastings, sorry, of just lowering it to what the renewal is.
That's fine with me.
Because it's not, I mean, a hundred startups or whatever it is, that's not a big deal.
Sure.
Yeah, as Vice Mayor had said, I think we calculate we estimated maybe about 25,000, 30,000 of a of the impact that we would have.
So not a huge significant impact if you're just looking at that first year reducing from the 168 to the 84.
Yeah.
Like just if it's your first time, then there's no, I don't see an issue with lowering it.
That's not really where we're making anything anyway.
It's the renewals is where the numbers are.
Yeah, that that I wouldn't mess with that number, but the startup, yeah, I wouldn't I have no problem with cutting that in half.
What was that number you said?
Are we getting revenue from the city?
We estimated we said we don't tag it first time or not, so our data's not great, but we estimated probably about 25, 30,000 that we would get from more because of the 168.
Gotcha.
That's all.
Thank you.
Vice Mayor Jack Hastings for the full name.
Yeah, I love the idea too, because a lot of the time, yeah, that first fee, if you're a first-time business owner, you're you know, you're paying double.
Obviously, there's staff time associated with that.
Uh, but also, you know, I think the other part of it is we're competing with other cities.
You know, like we're competing with other cities.
Uh, you know, good year and Peoria, like both their fees are under $100.
And and frankly, I didn't even know kind of what to compare to until I kind of started digging into it.
Um, and it's fortunate that you know, Councilman Haney initially kind of brought up the subject overall.
And so I feel like it it's I think it also sends a message too that surprise is open to business.
Like we see so many, I don't say like elected officials like up here, but we see you know that uses a talking point, you know, with you know, politicians, they you know, public safety, small businesses, and they say it, but you know, when the time comes to like you know, put your money where your mouth is and and show action, you know, it's it's an easy talking point, but what are you actually doing about it?
And so I love this idea.
I think it's a great start, and I hope we can kind of you know build on it and continue to look at you know, with with Spark and how we can continue down this road.
But I think it's uh I think it's a great move.
So I appreciate you know, you for coming forward.
Thank you so much for taking the time and and talking um about it, and thanks to the council, you know, for the comments as well.
Councilman uh Melton, did you have anything?
No, no, okay.
I have a couple of thoughts on it.
Um, Andrew, you said that uh whose version of small businesses that I think it says council's job to set policy for the city.
So if we're gonna adopt a program that reduces business fees or license fees for small businesses, I think that's something that the Sovenists will have to do and come back and talk about what is that exactly.
Um I think that we should.
I don't wanna I don't want to give um Walmart or big box stores that cut because I don't need it.
Uh if it's a small business and we define as a council what small business is and give those entrepreneurs uh a break, I think that's probably the way to go.
Um it's uh you know, it's only 30,000.
I you know, as we just have to cut somewhere, and I you know, we we cut the property tax, and I mean cutting taxes is great and we need to and you know keep money in our residents' pockets, but you know, I don't want it to be death by a thousand cuts where we're trying to build a city, you know, that we can be proud of roads, uh police fire, all those things, and if we continue to cut, then it then those like what where's that gonna hit us down the line?
Like it's you know, and uh and I support this.
Uh I support it for small business.
I think councilman Judd with his rebate idea or councilman Melton with his his sliding scale.
I think that's you know, we come back maybe Greenberg.
Give credit where credit is due, my friend.
Um, Councilman uh Greenberg, thanks for the correcting me on that.
But um, I would like to, you know, maybe uh have staff dig a little bit deeper, maybe uh economic development, uh clearly identify what is small business and come up with a couple options of what you know we can provide for the discussion and say, yep, this is this is what it can be if we set that policy to say.
And then that would go to maybe Spark Surprise, and they would sign that rebate or wherever the case may be.
Okay, so for just to make sure for clarification, do you want the rebate program for the economic development, or you just want to learn different ideas of what a small business different levels of small business?
Yeah, I think it's incumbent on this council to determine what if we're gonna give a rebate, what is that rebate?
Who does it go to?
Okay, but in the rebate the context of the rebate program.
Or if you if the staff can go back and do some work and maybe look at some other models that cities have done and give us kind of a baseline of like, hey, this is you know one course of action, this is another course of action, and then we can have a debate up here as to what direction we want to go because giving a uh a break to small business is important, and we were investing in Spark Surprise.
Uh, we invested in the West Valley Chamber.
Uh, I think this council is 100% on board with supporting small business and doing everything we can.
So I just want to make sure that uh we're given that rebate to who deserves it, not big box as a flat, just hey, we're just kind of cut it.
Okay.
For timing wise, I'd be remiss if I didn't bring up timing.
Our business license renewals do come out the or usually sent out about right now.
Uh, the calendar, they start on calendar year January 1st.
So we probably do that research and maybe bring back to the council sooner than later, just so when we send out those renewals, we could have that updated fee information in there.
Timing is yeah, not on our side, I guess, right now.
And maybe we can update the forms we can identify who's you know, renewal, who's new.
Yes, so we'd have to update those forms and implement them into the software.
Okay that go into that.
Yeah, but I do appreciate the presentation.
It was very detailed.
It's important to know the backstory of why we have licenses and the fees.
So yes, so thank you.
We will do that research.
Right.
Thanks.
Appreciate your time.
Thank you.
Do you accept and these can you trust, transparent engagement with businesses and the community, um, economic vitality.
So direct alignment with so in our department, we have um eight specific economic development strategic plan goals, which I'll go over because they they align with this the council's uh goals and uh sustainability.
So we we think that we're we're focused on a lot of things that drive sustainability.
Um reducing commute times could be tied back to that.
But we're most excited about building a walkable downtown and and and creating mixed use and density and and ways that um the public can access things in a more walk fashion.
So the um department strategic goals, so I'll go through a few.
Um so council's strategic goal um 5.1 was to attract and retain industries to support employment opportunities.
So you'll see so this is language from the economic development team strategic plan.
We use fun language because why shouldn't an economic development strategic plan be fun?
And you're in a city called surprise.
So one of them is literally just bring on the jobs.
We want to grow our employment base.
Um the next goal is to bring retail amenities closer because no one wants to drive to Scottsdale.
And I got that message loud and clear.
Um we want to make sure that if you want something in surprise, we're gonna try to get it.
Um the next goal, we want to curate a future downtown um and infrastructure and create a vibrant mixed-use place.
And then finally, on this slide, delivering the talent.
So the council goal is proactively pursue and create workforce development initiatives.
And council was really laying it laid a foundation for that um with the education subcommittee with its support for Ottawa University, with its support for West Mac and all of these wonderful partnerships, the Dysert Unified School District.
And so we we agree um the talent, the talent is everything, and we I know we've we've talked about it, but it's really the number one goal of uh of every um business that comes here is to find out if they have the workforce here that will meet their meet their needs.
It's it's been from a site selection perspective the number one goal of of businesses or the number one aspiration to get workforce.
If they don't find the workforce, the conversation is over.
Um that we're seeing more and more that a business visits us and they have their HR staff.
It's not just the the real estate guy and the CEO or or whoever, it's really about people.
And so we we want to match council's vision and exceed it.
So the the next uh next few goals.
Um council's uh strategy 5.3 is to continue supporting staff to be creative, and I love that and make calculated decisions to attract desired businesses.
So in alignment, um, our goal is to market surprise creatively, and I so appreciate that.
I my I believe that no business ever locates or considers a city that it hasn't heard of.
So we have to we have to be creative, we have to be fun.
There's a lot of noise out there.
Um, so we get our name out there.
Um, but then back to creating a sustainable long-term vision, they don't stay in communities where they can't find workforce.
And we're, you know, so that's why we're we're building um retail and we're building things that are sticky and um creating ways that people can live their lives comfortably in our city.
Um, and then um 5.4, continue to strengthen and support small businesses.
So we are we are determined to grow startups.
So there's this idea in economic development, um, economic gardening.
Um, it it makes a lot of sense.
There, you know, you never know when that big locate's gonna come.
You can't count on that big locate just seeking out surprise or for finding us as their their top location.
It's very competitive, but we can really cater to a local community.
And um that you know, if we uh bank on a hundred businesses, maybe if 10% of them um you know grow grow into bigger businesses.
Well, that's a lot of jobs.
So that's that's critical.
Um, and then another goal aligning with continuing to strengthen support small businesses is an appreciation appreciating and supporting our local businesses.
So we knock on a lot of doors.
We we talk to about 40 to 50 businesses a month, um, meaning we we go to them and we ask them how we can help them and serve them if they they need a celebration.
Um we ask them if they want to come to a job fair, it's free, if they want to post anything for free on our community jobs board.
Um so there's so many ways that we can serve businesses.
And so hopefully we'll find them.
So the next um the slide here uh relates to key projects and initiatives that you'll find in the economic development strategic plan that matches sort of the council aspirations.
So I was asked to pick three, but I picked five because that's just how we roll.
Um, but uh we've got a lot going on in our city, and and I love I love being ambitious.
So um, but generally so spark surprise is is first among equals.
We want it to open, we want it to be strong, we want to have our program correct, and anything, any kinks in the program, we want to make sure we fix it quickly and make sure we're we're great service providers.
So, right now we're focused on building that curriculum, building our partnerships, making sure all of the facility um um gadgets and so forth are is that uh podcast room done?
Um, is the furniture in place for our meeting rooms, it's et cetera.
And uh we hope to launch that early next year, and we track that through um the uh metrics, so number of startups engaged and so forth.
Elm Street, we've got a new master plan coming right at us.
Um, we've got a lot of ambitious plans, um, a tech park, um building a digital twin.
I mean, we're really trying to think in a forward way about making this the downtown, the premier downtown of the West Valley.
And way ways that we're measuring that this year is is it comes down to marketing.
Are we marketing and communicating our vision for the master plan?
Um, we're not waiting for the phone to ring.
Um, we're creating an investment portfolio of aspirations and businesses that we want in our downtown and um moving forward on our our launching our our uh digital twin.
And then um obviously business attraction um is critical.
So thank you for uh the permission to market creatively.
We always appreciate that.
Again, I you know you're a city called surprise, you have to be creative.
Um so we we have great fun, um, but but it we it is very serious business.
Um we we want to target um target um uh conferences and and um prospects and so forth and make sure that we're bringing um results across the finish line.
Um so our metrics include the number of businesses that we're courting, square footage, jobs, and the usual metrics that you might look at a uh um on a on a uh results at the end of the year.
Um, in terms of business climate, you know, um it's it's events, it's things like show, you know.
I appreciate the comment about cash flow and um you know uh access to capital.
It is critical.
On October 1st, we're hosting an event to kick off Spark Surprise, candidly, called Show Me the Money.
And so it's these kinds of programs that that really make the difference that make businesses um really feel that we welcome them and we want to help them and we want to support them and we understand um the their needs.
Um business visits, so uh um we we also do a cost of living analysis.
So um we participate, we're one of the the few cities in Arizona that participate in the cost of living index.
So we are actively monitoring what does it cost to live in our city, what does it cost to do business?
What does it cost to buy a Big Mac in our city versus Yuma or Chicago?
We want to know those things, and it really does help us tell a compelling story.
And so our metrics include business visits, um, celebrations, and completing that cost of living index, and finally um developing the workforce.
Um we're we're continuously posting positions to the community jobs board.
Um please help us get the word out that there is this free uh resource, that we do free job fairs, there's not a an uh a cost to any of the businesses, um, that we are we're supporting our workforce through scholarshipping and doing these amazing career technical education events um with DECA, with HOSA, um, with uh future business leaders of America and and possibly a few others the first of every year.
So um let me know if you have any questions about that.
So as I turn to this slide, um, I want to recognize that the challenges and opportunities that I threw on this, um, they're they're not it's not exhaustive.
I know, I know this isn't the the final list of opportunities and challenges.
Um, but I also want to point out this a lot of these are just not unique to our city.
These are problems that we can share and opportunities that we share with with our regional and statewide partners.
Um in my um infrastructure and related uh resource limitations to infrastructure development.
We're all having an energy challenge.
If you talk to somebody in the on the East Coast and the Midwest, we're we're all we're all looking down the barrel of the energy um challenges.
Um we're all facing infrastructure issues, and I can't think of a community that says, we've got enough money, we're fine.
We don't we can build all the roads we need.
So that's a shared challenge.
Um there's also I think particularly in Arizona, we're we're different when it comes to incentives.
We have certain limitations, um, but I like to think that makes us more creative.
So maybe it's an opportunity as well as a challenge.
Um I don't think we have a labor shortage in Arizona.
We're growing.
We hear the growth numbers, we see the how housing growth.
Um we've got um a labor mismatch in some cases.
So that's something that we're focused on with a lot of regional partners trying to figure out how do we scale up in some areas and how do we shift priorities for for businesses, how do we help them automate and augment workforce needs?
Um, and then another challenge, um diminishing uh real estate sites.
So uh we've talked about there's a 2% or less vacancy rate in retail.
So I I would love to help every small retailer, any small business that wants to start a new restaurant.
Um I don't have we don't have the space.
So um these are just natural challenges that with um with time and um marketing, hopefully we can change.
On the other hand, I think surprise is unlimited.
We've got we've got a tremendous opportunity as a um a really dynamic, upwardly mobile, um, you know, young, fresh community.
Um we've got a really business friendly reputation, believe it or not.
So, you know, I uh we we talk to a lot of other cities, um, and you know, I think I think we can hold our heads high.
Businesses feel welcome when they walk in the door.
Um we've got a growing stronger um demographic to help attract new retail and attract some of these things that the residents are asking for, and we've got talent.
That is the factor.
We've got that it factor.
We've got the talent, and it is a place because of all of the growth that people can now see themselves and see their workforce living and thriving and growing.
Um and that, and I think the demand is an opportunity.
Um, the the growth is building that demand.
So it's a great, it's great.
I can do a lot of data and storytelling and demonstrate that we actually we need that new healthcare entity.
We need that new restaurant and so forth.
It's been, it's it's a very compelling story that we have.
Um we've got fantastic regional partnerships.
And finally, I, you know, I think we're we're becoming the cool kid with with um Spark Surprise and some of the new initiatives that we're we're developing on our city center.
And it will be a place where technology and innovation um are our reputation.
So I'll just I'll just close and um just say I I I my belief is you know the council's vision has been instrumental in helping us build a plan um and helping us really um you know show demonstrate how much we value the input from residents um and what they want, which is creating jobs, um supporting entrepreneurs, um, and building a vibrant downtown.
And those are we're we are laser focused on those those elements.
And I I think that the future has so much potential.
So I just want to thank each of you for taking the time um to do some strategic planning.
And it it was it really helped our department um um really visualize our next steps and our approach, and it really has given us a lot of confidence to move, move further and be more creative.
So thank you so much.
I'd be happy to take any questions.
I know this I just glossed over this.
No, it's a great presentation.
Um councilman Melton has a question or comment.
Okay.
Uh thank you, Mayor.
Uh what I really appreciate the biggest thing I appreciate is your guys' ability to forward thinking.
You hit this as you're dealing with how do we improve the business climate here.
You're doing in multi-faceted ways.
And you nailed one recently uh about skills mismatch.
And what I really admire of your department, your team is to find out of the box ways.
How do we what do we what can we do?
And the a good example is your or Carly, I think Mike Hoover's back there.
Very, very supportive of neighboring Ottawa University uh to and support them as they uh encourage them to make their engineering programs more robust.
Um so that the education here surprise is relevant to a growing economy and to an evolving economy.
So things like that.
I I'm just very grateful for you guys having that vision and and keeping focused on those things behind the scenes.
Not a lot of people to see it, but it is important.
So thank you, Janine.
Uh, thank you for your team and and keep up the good work and keep thinking ahead.
Thank you so much.
Councilman Greenberg.
Thank you, Mayor.
Um, because for those who don't know uh Janine and her staff, and I don't know if communications was involved in that, but the uh International Economic Development Council even award for your uh April Fool's uh Kale emergency video for Whole Foods.
So just sort of picking it back and off of that creativity that they've been putting out there.
I mean, you guys are spot on with what you're doing, and I really appreciate it.
Thank you.
We could not have done that without a lot of departments and you know, marketing.
It was in the emergency management center.
Um, police and fire were involved.
I mean, we really appreciated all of the support.
Surprise likes being the new kid on the block, and I think you are just hit that out of the park with that.
So thanks.
Thank you, Councilmember.
All right, thank you.
Vice Mayor Jack Hastings.
Thank you, Mayor.
Jean, I Janine, I just wanted to say thank you for all the work you've done at City Center.
Obviously, it's privately owned, we all know that, but just kind of facilitating that and and just being able to help support them.
Um I remember uh lifeguarding at the surprise pool back when I was 16 years old, and we would see the monsoon come in, and there was still it's getting better, but we would see the monsoon come in.
There is, or not the monsoon, but like the dust storm, right?
Come in and there was nothing.
I mean, it just it just took us took us out.
And um, we're finally seeing stuff go up.
Obviously, we've seen, you know, before I got here, but you know, Ottawa from Ottawa to In and Out, and now we obviously see some new restaurants, spring training facilities, you know, to help those our ranges and royals want to stay here, and you know, some places to live in our city center too.
And so I'm I'm super excited about the potential.
It's great to have you and the West family, Scott Phillips and Josh Simon uh working on that.
And I'm super excited about uh the future for that.
So um, yeah, and I will just say too, if you haven't seen it, I'm gonna mention my council reports, but I'm gonna talk about it now too.
Um, desert farms, um, if you've familiar with that, is coming to surprise city center um this year along Greenway Road.
And again, like that's just out of the box thinking like obviously we have this land and we can't just build overnight, but how can we, you know, how can we put it to work?
How can we be creative and and bring our residents something unique?
So I love it.
Thank you, Janine.
Thank you so much, Vice Mayor.
Any other councilman have any questions or comments?
I just have one thing.
I mean, that's uh I think you got economic development is the path forward.
Uh, you know, we and uh we have to have more retail, more businesses.
Uh, and I think this council has doubled down its efforts to support you in all your efforts that you do because um we need to build the city of the future in the specific that we want, and we can't do that um without economic development, without the cash registers, without um the businesses moving here because uh you know nobody wants to raise taxes on residents, but unless we get an economic or continue our economic development push, um we're gonna have to we just have to do it.
So uh I don't want to be long-winded, but thank you for all you do.
Thank for your thank you for your presentation.
Uh your team's incredible.
Uh the presentation today at the uh West Valley, what was it called?
The midday mingle, I think.
Um is a great presentation from uh Dr.
Sandusky.
So um thank you.
Thank you, Mayor.
Yes.
With no other items on the agenda, I will move.
I'll entertain a motion to adjourn.
Motion.
Second.
All in favor?
All opposed.
This meeting is adjourned.
Surprise City Council Work Session on Business Licensing and Economic Development - September 2, 2025
The Surprise City Council held a work session on September 2, 2025, to discuss two major topics: the city's business licensing process and fees, and the economic development strategic plan. The meeting began with a presentation on business licensing, followed by a discussion on potential fee reductions for small businesses, and then a presentation on the economic development department's strategic goals and initiatives. No formal votes were taken, but council directed staff to research options for reducing business license fees for startups.
Discussion Items
- Business Licensing Process and Fees: Staff presented an overview of the business licensing process, including the purpose (ensuring safe, compliant, and responsible business operations), standard review timeframes (15-20 days), and the roles of various departments (finance, community development, fire, police). The current initial fee is $168, with an annual renewal of $84. Staff noted that the fee does not recoup costs, with an estimated subsidy of 10-30%. Council discussed reducing the initial fee to $84 for first-time businesses, noting that the revenue impact would be approximately $25,000-$30,000 based on an estimated 100-200 new startups per year out of 5,500 active businesses. Council members also suggested a sliding scale based on business size or a rebate program for small businesses, with a definition of small business to be determined. Staff will conduct research and return with options.
- Economic Development Strategic Plan: Janine, the economic development director, presented the department's strategic plan, which aligns with the council's strategic goals. Key initiatives include Spark Surprise (a business incubator launching early 2025), Elm Street master plan, tech park, digital twin, and workforce development programs. Challenges identified include infrastructure limitations, energy constraints, labor mismatch, and diminishing real estate sites (retail vacancy rate under 2%). Opportunities include a growing demographic, business-friendly reputation, and strong regional partnerships. Council members praised the department's creativity and forward-thinking approach, citing the award-winning April Fool's video for Whole Foods. The department conducts 40-50 business visits per month and hosts free job fairs and a community jobs board.
Key Outcomes
- Council directed staff to research and return with specific options for reducing business license fees for small businesses, including a definition of small business, possible rebate programs, or sliding scale fees. The research should be completed before the next renewal cycle (January 1, 2026) to allow fee updates in the renewal forms.
- No formal votes were taken; the session was informational and provided direction for staff. Council expressed strong support for small business incentives and continued economic development efforts.
Meeting Transcript
All right, good evening. I'd like to call this work session on September 2nd, 2025 to order. Madam Clerk, if you could conduct the roll call. Mayor Sarder. Present. Vice Mayor Hastings. Councilmember Haney. Here. Councilmember Greenberg. Here. Councilmember Duffy. Here. Councilmember Melton. Present. Councilmember Judd. Here. Thank you, Mayor. We have a quorum. Thank you. Please join me for the Pledge of Allegiance. Indivisible delivery and justice for all. Madam Clerk, please read. Um the microphones sound really weird. Exactly. It's echoe in here. I don't know if it's echoing. The gentleman in the control room can fix that, but it's really really weird. Um guy behind the curtain. Okay. Yeah, the guy behind the curtain. But we'll continue. Please read item number one. Item number one, presentation and discussion pertaining to the city's business licensing process and fees. Good afternoon, Mayor, Council. So Mindy and I are here uh to discuss business licensing. And you may wonder why community development is participating in a presentation about business licensing, but hopefully our presentation will help answer that for you. So a couple of weeks ago, um, it was asked of staff to come back and discuss um before council the business licensing process, the fees associated with it, and why we have business licenses. So we'll start with the purpose of licensing. And the purpose of a business license is to ensure safe, compliant, and responsible business operations. So we're really trying to find that balance between the safe operations and protecting our residents when we're issuing a business license. There are several departments that take a look at the business licenses when they come into the city. Um public safety is very heavily involved. Their role is to ensure that businesses are operating in conformance with the city's codes, public safety, health, and welfare. This is how businesses become known to our economic development team. So through the business licensing process is where there's a mechanism to connect new businesses to our economic development team for things such as uh the ribbon cuttings and the grand openings that that ED often helps put on. And then last but not least, there's a tax compliance component to the purpose of licensing. It aids in identifying taxpayers for the TPTs. Standard business license timeframes. We typically receive and issue licenses within about 15 to 20 days. Days zero through five is where our finance team, spearheaded by Mati Lugo sitting behind me, is looking at administrative completeness.
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