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rf CITY pF HU I:ST. lAOfs Introduction Economic development is vitally important in every City. Strategic planning, strong partnerships and a clear understanding of the City's goals are important when planning economic resiliency and growth. Collaboration with the City's Economic Development Association (EDA), Hugo Area Business Association (HBA), and Washington County inform this planning process and create strong connections to the City's existing business. This chapter will discuss the City's current business climate, identify strengths and weaknesses, and outline a framework for guiding economic growth. In 2004, the City organized its Economic Development Authority (EDA) into a seven member advisory group including the Mayor and one City Councilmember. As an advisory commission to the City Council, the EDA is responsible for attracting economic growth and development, retaining businesses, and assisting with the expansion of existing businesses within the community. The EDA recommends economic development policies and economic development financing incentives to the Council. The EDA has prepared this long-range strategic plan for economic development for the City. Purpose The purpose of this plan is to expand and enhance the City's commercial and industrial base. The City's goal is to establish a healthy, thriving business community that will maintain and enhance the City's high quality of life. An expanded business community will provide an expanded tax base, increased local employment, a greater variety of jobs, and a full range of goods and services for its citizens. Background and Business Climate Downtown Hugo Hugo's business community is historically concentrated within the downtown district. Some of the City's services and retail are still located in this corridor, despite the loss of many restaurantlentertainment venues. Hugo's downtown contains approximately 41 businesses and 145,000 square feet of commercial space. A variety of neighborhood convenience and specialty retailers can be found here, as well as a handful of automotive businesses. With very few national chains or franchises, most businesses are locally and independently owned. Other community amenities including City Hall, St. John's Church, the American Legion Hall and Hugo Elementary School also contribute to the function and character of this area. The City's expanding population and economy poise downtown Hugo to develop with a rich variety of new entertainment and commercial services that will add vibrancy to the community. Highway 61 A wide variety of businesses are located along Highway 61, particularly north of the downtown area. Many businesses along this road operate out of metal pole barns on gravel lots with outdoor storage, and the majority are still using private well and septic systems. Uses along the corridor include automotive, manufacturing, contractor operations, landscaping businesses, auto salvage yards, and recycling. As a whole, these businesses have minimal investments into buildings or site improvements, and many are likely to be redeveloped when municipal services are extended to these areas. Peloquin Industrial Park This industrial park located at Highway 61 and 152nd Street was originally developed on gravel streets and with no municipal services. In 2004, the City constructed paved city streets with drainage improvements and extended municipal sewer and water to the park. Since that time, the City has seen substantial new investment in the industrial park, resulting in the construction of new buildings, site improvements, and new businesses. Uses generally include manufacturing, warehousing, and contracting businesses, some of which are located in metal buildings on gravel lots, and contain minimal site improvements. Bald Eagle Industrial Park The City began developing this industrial park in 1999 with the help of Tax Increment Financing (TIF). Its location along a rail spur beside Highway 61, and between 130th and 140th Streets has allowed the park to become a major success, and the park is now home to the City's largest concentration of jobs. Construction standards have resulted in higher quality concrete buildings, and paved and landscaped sites. The park is home to the City's largest employers, with uses primarily consist of manufacturing, technical, warehousing and construction. There is also a pet resort and a mini -storage located here. County Road 8 Gateway DRAFT 2040 Comprehensive Plan Update — Economic Development HUG16015 - September 15, 2017