2016.07.05 CC Packet - Laserfiche WebLink

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CITY OF HUGO, MINNESOTA Economic condition and outlook (continued) Despite the 2009 housing crisis, the City has continued to see strong residential development. From 2009 to 2014, an average of 79 housing units were constructed each year. During 2015, 65 new single- family housing units and 5 new townhome units were constructed with a value of $21,592,000. New residential development is expected to remain strong in 2016. Commercial development is also increasing in response to the growing population and increasing demand for goods and services. Over $25,000,000 in new commercial development has been constructed within the past five years, including a new grocery store, three health clinics, and other retail businesses located primarily along the newly improved CSAH 8 corridor. In 2015, construction was completed on a 113,000 square foot senior housing complex containing a mix of market -rate apartments, assisted living and memory care units. The City's tax base is comprised mainly of residential homestead (68.2%) and commercial/industrial property (14.4%). The balance consists of non -homestead residential property (11.1%), agricultural and seasonal recreational property (4.4%), and personal property (1.9%). The ten largest taxpayers make up 8.47% of the city's net tax capacity, providing the city with a very stable source of property tax revenue. The city's industrial parks contain five major employers with a total employee count in excess of 800. Median Effective Buying Income (EBI) is 129% of the state median. The financial policies employed by the City of Hugo did not have a significant impact on the 2015 financial statements. Long-term financial planning. The city council is directing city staff on numerous projects that will affect the growth of the city. A partial list includes: 2030 Comprehensive Plan. The city recently adopted its comprehensive plan, adding over 5,000 acres to the Metropolitan Urban Service Area. This expansion effectively doubles the land area for development within the city. Property within this area has been guided to develop with a variety of land uses accommodating the demand for additional residential development as well as providing substantial land areas for services and future employment centers. The plan, when implemented, will accommodate a population of 40,000 by the year 2030. Transportation Corridor Planning. The city has partnered with the State of Minnesota, Washington County, Regional Rail Authority, and adjacent cities and counties to develop plans for future transportation improvements. Planned improvements include a future interchange on 1-35E, right-of- way preservation, and expansion of several roadways into multi -lane, multi -functional transportation corridors that can accommodate the vehicle, pedestrian and mass transit growth needs expected to occur in the city by the year 2030. Downtown Redevelopment. With funding provided by the Metropolitan Council, the City completed a downtown master plan and marketing study for the downtown area, with the goal of reinvigorating the town center. The City also completed a transportation plan for the downtown area and has secured federal funding for improvements to Trunk Highway 61. The city has also purchased several properties in the downtown area and is working with several property owners interested in redeveloping their properties through the use of tax increment financing.