2017.07.17 CC Packet - Laserfiche WebLink

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CITY OF HUGO, MINNESOTA Economic condition and outlook (continued) The city has continued to see strong residential development. From 2009 to 2016, an average of 81 housing units were constructed each year. During 2016, 99 new single-family housing units and 9 new townhome units were constructed with a value of $28,018,000. New residential development is expected to remain strong in 2017. Commercial development is also increasing in response to the growing population and increasing demand for goods and services. Over $27,000,000 in new commercial development has been constructed within the past five years, including health clinics, dental clinics, daycare facilities and other businesses located primarily along the newly improved CSAH 8 corridor. The city's tax base is comprised mainly of residential homestead (67.7%) and commercial/industrial property (14.6%). The balance consists of non -homestead residential property (11.3%), agricultural and seasonal recreational property (4.5%), and personal property (1.9%). The ten largest taxpayers make up 8.78% of the city's net tax capacity, providing the city with a 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 2016 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: 2040 Comprehensive Plan. The city has begun work on updating its comprehensive plan, which occurs on a 10 -year cycle. The plan will accommodate a population of 40,000 by the year 2040, and include development of a diverse mix of housing options, connected by a robust pedestrian trail network and ultimately a multi -modal transportation system. A major focus of the city council within this planning cycle is economic development. The city has set aside land for the development of multiple employment centers along transportation corridors, especially TH 61, CSAH 8 and CSAH 4. 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 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 2040. • Emerging Service and Entertainment Industries. With the anticipated stagnation of the retail market segment, the city is well positioned, as the retail sector has not been overbuilt in Hugo. Medical office buildings, service -based uses, professional office space and dining establishments have been constructed in recent years along the major traffic arterials.