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DISCtiSSION OF THE CITUAREA <br /> The subject property is located at the northeast corner of Fenway Boulevard North and <br /> Fenway Boulevard Circle N. in the approximate center of Hugo,Minnesota. <br /> Hugo is a third to fourth tier suburb north of St.Paul and comprises an area of approximately <br /> 22 square miles on the westerly periphery of Washington County. Downtown St. Paul is located <br /> about 15 miles south, while Minneapolis is about 20 miles southwest. Hugo is bordered by Forest <br /> Lake Township to the north; May Township to the east; White Bear Township to the south and the <br /> city of Lino Lakes to the west. <br /> The city of Hugo is a growing community located in the northeastern metro area. This area <br /> in general has seen steady growth as the central portion of the Twin Cities has migrated outward. <br /> Communities such as Lino Lakes, Centerville and surrounding suburbs should continue to see <br /> growth as the Twin Cities experience urban sprawl.Hugo has a current population of approximately <br /> 12,022 people. This is a substantial increase over the 2000 level of 6,363 people. This is in spite <br /> of the three year moratorium on residential construction in the early part of this decade. <br /> Access to Hugo is very good, especially for a third to fourth tier suburb. Interstate 35E <br /> extends north and south just westerly of the westerly periphery of the city and provides ready access <br /> to downtown St. Paul within about 15 to 20 minutes. U. S. Highway 61, one block easterly of the <br /> subject property extends northerly from St. Paul and White Bear Lake through Hugo and north to <br /> Duluth. <br /> The city remains mostly undeveloped, with large areas of unimproved land. Land uses <br /> consist of single family residential subdivisions,some scattered agricultural uses and hobby farms, <br /> developing industrial areas as well as large areas of lakes and wetlands. <br /> The presence of many lakes within the city is helping to sustain strong single family <br /> residential growth.Residential development in the city is virtually all single family,with most of the <br /> housing newer and of good quality. <br /> Commercial development as expanded substantially in the past five years or so along Frenchman <br /> Road just easterly of Interstate 35#in the westerly part of the city. The complex of uses in this area <br /> include single family detached and attached housing,strip shopping centers and convenience goods <br /> and services. All of these facilities in this development have been constructed within the past four <br /> years. The Bald Eagle Industrial Park along Fenway Boulevard in which the subject property is <br /> located contains a number of large office/warehouse type properties similar to the subject property <br /> as well as smaller offices and a large mini storage facility. There is also some older,mostly steel on <br /> steel industrial buildings along 130`h Street N. - south of the subject property. <br /> Major growth in the city will most likely come from the development of single family <br /> housing for the immediate future. Commercial development is underway, but will probably <br /> accelerate as the population increases to support more businesses. The city is in the early stages of <br /> growth, and the outlook portends gradual or rapid growth for decades. <br /> 17 <br />