HomeMy WebLinkAboutEDA Packet 03.21.17AGENDA
CITY OF HUGO
ECONOMIC DEVELOPMENT AUTHORITY
Tuesday, March 21, 2017
5:00 PM
5:00 pm 1. Call to Order
5:01 pm 2. Roll Call (Denaway, Gallivan, Houle, Klein, Petty, Puleo, Weidt)
5:02 pm 3. Approval of Minutes
• EDA Meeting of January 17, 2017
5:03 pm 4. State Farm Insurance
• Ty Schrupp, Agent
5:20 pm 5. Discussion on Washington County Economic Development Strategic
Plan.
5:45 pm 6. Update on Downtown Redevelopment
6:00 pm 7. Adjournment
BACKGROUND MEMO FOR THE EDA MEETING OF
TUESDAY, MARCH 21, 2017
3. APPROVAL OF MINUTES
Staff recommends approval of the minutes from the January 17, 2017, EDA meeting as presented.
4. STATE FARM INSURANCE — TY SCHRUPP
In 2017, State Farm located in Victor Gardens South Village Retail Center. Ty Schrupp, agent at this
location, will be present at the meeting. Staff recommends that the EDA welcome Ty Schrupp and State
Farm to Hugo.
5. DISCUSSION ON WASHINGTON COUNTY ECONOMIC DEVELOPMENT STRATEGIC
PLAN
Over the last few months a work group of economic development staff of Washington County cities has
been meeting. Chris Eng, Economic Development Director at Washington County has been hosting the
meetings. The group has been working on prioritizing possible economic development efforts for the
County. The County has also invited speakers to present to the work group, some include representatives
from DEED Office of Business Development and Xcel Energy.
They now have a draft of an Economic Development Plan that provides action steps and deliverables for
how the County will be active in economic development. The sections include marketing, partnerships,
financial assistance, community assistance, workforce development, and infrastructure. It's in staff's
opinion that Washington County has done a good job in outlining the action steps within their plan.
Staff recommends the EDA review the plan and adopt the resolution to supporting the Economic
Development Plan for Washington County.
6. UPDATE ON DOWNTOWN REDEVELOPMENT
Staff will provide an update to the EDA on downtown redevelopment.
MINUTES FOR THE EDA MEETING OF JANUARY 17, 2017
Klein called the meeting to order at 5:00 pm.
PRESENT: Denaway, Gallivan, Klein, Petty, Puleo, Weidt.
ABSENT: Houle.
STAFF: Bryan Bear, City Administrator
Rachel Juba, Planner
Rachel Leitz, Community Development Assistant
APPROVAL OF MINUTES FOR THE EDA MEETING OF DECEMBER 20, 2016
Klein made a motion, Gallivan seconded, to approve minutes for the EDA meeting of December 20, 2016.
All Ayes. Motion carried.
APPROVAL OF 2017 EDA GOALS
Juba stated the EDA discussed the 2016 goals at their December 20, 2016 meeting. The EDA identified that many of
the 2016 goals are items they would like to continually work on throughout 2017. Juba asked the EDA to approve the
2017 goals if there were no further comments or corrections.
Denaway made a motion, Puleo seconded, to approve the 2017 EDA Goals.
All Ayes. Motion carried.
PRESENTATION ON 2016 EDA ANNUAL REPORT
Juba presented on the 2016 EDA Annual Report. The EDA Annual Report is designed to showcase many of the
commercial and industrial businesses that have located in Hugo and other economic development activity in the past
year. This information helps put the last year into perspective and helps the City plan for the future.
Juba specifically discussed the number of new single-family and multi -family units. She discussed the commercial
and industrial construction permits in 2016 and their valuations. The 2016 EDA goals were mentioned within the
report as well as new commercial projects that were approved in 2016. These projects include Sprouts Pediatric
Dentistry, Growing Generations Child Care Center, Park Dental, and a newly created parcel in the Bald Eagle
Industrial Park for a new Western Spring facility. The annual report discussed Washington County Economic
Development efforts in 2016, especially the hiring of its first Economic Development Director, Chris Eng. There was
a focus in the report on the continued marketing efforts of the City -owned property in downtown. Finally, the EDA
attended events and business visits, many of which through HBA events, within 2016.
UPDATE ON DOWNTOWN REDEVELOPMENT
Staff provided an update to the EDA on downtown redevelopment.
ADJOURNMENT
Puleo made a motion, seconded by Klein, to adjourn at 5:38 pm.
All ayes. Motion carried.
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2017-2019
Washington County CDA
Economic Development Plan Update
Table of Contents
2/23/2017
VisionStatement......................................................................................2
MissionStatement....................................................................................2
Goals....................................................................................................2
Planning Process.......................................................................................2
Values........................................................................................... . .......3
Policy and Guiding Principles........................................................................3
Opportunities and Challenges........................................................................3
Action Steps/Deliverables.............................................................................5
Acknowledgments...................................................................................... 8
Appendices................................................................................................9
Definitions................................................................................................9
Economic Profile.......................................................................................11
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To ensure that programs and services support and complement economic development programs
initiated by cities, townships and the county.
To provide financial and technical assistance to businesses and communities as requested to
enhance economic development, expand the tax base and promote job creation opportunities in
Washington County.
1. Promote and market the quality of life, rich diversity and assets of the county.
2. Provide resources to help entrepreneurs get started and existing businesses grow.
3. Be a value-added partner to other public and private entities.
4. Find ways to help our businesses attract and retain talent and find ways to keep our
working residents here in the county.
5. Promote strong infrastructure, multi -modal transportation and highspeed broadband.
On May 6, 2014, the Washington County Board of Commissioners approved the Washington
County Economic Development Strategic Plan. Within the Economic Development Strategic
Plan, a number of goals were identified. Many of these goals have since been completed,
including:
Analyzed various organizational structures to implement economic development
initiatives on behalf of the county. In June of 2016, the Washington County Board of
Commissioners approved the creation of the Washington County Community
Development Agency (CDA) as recently authorized by the Minnesota State Legislature.
Designated a county staff member to be the point of contact for economic development
and implementation of the strategic plan. In June of 2016, the Washington County CDA
hired a full time Economic Development Director to serve as the point of contact and
coordinate the economic development efforts within the county including updating and
implementing the 2014 Strategic Plan.
Updated existing financial incentive policies including tax increment financing and tax
abatement.
The purpose of this document is to serve as an update to the 2014 Economic Development
Strategic Plan with a planning horizon through 2019. A working group of township officials,
city administrators, school district representatives, and economic development professionals was
convened by the CDA in August 2016 and has been meeting monthly to assist in preparing the
elements of this update, with a goal of producing a draft for public review, which will ultimately
be adopted by the Washington County CDA Board and the County Board.
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The foundation of the Washington County Economic Development Plan is the policy and
guiding principles that drive the economic development goals, strategies and actions of the
County. The following policy statement and guiding principles define the County's economic
development efforts. These guiding principles are relevant for the present economic
environment and are subject to review and change on a periodic basis.
Economic Development Policy Statement
It is the policy of the Washington County Board of Commissioners to increase the County's role
and support of economic development within the County. The County will invest staff time and
financial resources in a planned, coordinated and strategic manner and will engage in a
collaborative and holistic approach to economic development. The County's policies and actions
will be guided by the following principles.
Economic Development Guiding Principles
The following principles are not in rank order of importance.
• The private sector is the lead that drives the economy
o The County will work in partnership with the private sector
• The County will not duplicate or replace the work of cities and other public agencies
o The County will work in collaboration with cities and public agencies and will
provide leadership where the County can make the most difference when asked
• The County supports a strong collaborative approach to economic development
o No matter the location, economic development is a benefit to the entire county
o Support efforts to ensure a highly skilled workforce and adequate workforce housing
• Business attraction and business retention are essential policy objectives
o A balanced approach to pursue each of the two policy areas is required
• The diversity of the County requires an adaptable and open-minded approach
o The distinctive qualities of the County require flexibility
In order to achieve the goals previously identified, several opportunities and challenges were
identified in order to inform future action steps.
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Opportunities
2/23/2017
The top three growth industries in Washington County between 2013 and 2015 are: 1) Health
Care Services, 2) Wood Products Manufacturing and 3) Professional and Technical Services. An
opportunity exists to research and seek to attract complementary businesses like suppliers,
vendors or large customers of the existing growing industry sectors in Washington County.
Small businesses are vital to Washington County's economy. 86% of the Washington County
businesses have less than 20 employees. Washington County is home to 17,847 self-employed
businesses or "non -employers" in 2014 (defined as businesses without employees that are subject
to federal income tax). An opportunity exists to support and grow the existing businesses and
business owners.
Washington County has a significant number of major transportation corridors including: 1-35,1-
94,1-694, 1-494,
-
94,I-694,1-494, US Highway 8, 10 & 61, MN Highway 5, 36, 95, 96, 97,120 and 244.
Additionally, Washington County has transit corridors including the Rush Line Corridor, the
Gateway Corridor and the Red Rock Corridor. An opportunity exists to participate in transit and
transportation corridor planning efforts and to advocate for state and federal transportation and
transit investments in Washington County.
Washington County has a highly -valued quality of life, rich diverse communities and many
assets and amenities. An opportunity exists to market and promote these amenities to site
selectors and businesses looking to expand or relocate.
Washington County has a growing population and a growing labor force. An opportunity exists
to leverage the quality of this growing labor force to attract new business development.
Challenges
In order to leverage the opportunities cited above into new tax base and jobs, an array of
technical and financial services should be developed.
Currently, businesses who are searching for sites may not know about the assets and advantages
of locating in Washington County. A county wide "business brand" that is cohesive, strong, and
unique will help Washington County stand out to businesses, in addition to a robust spectrum of
promotion tools. The CDA Economic Development Director can serve as a critical point of
contact for referral to opportunities in communities.
Technical and financial resources for small businesses is limited compared to services in other
counties. The "Open to Business" program is operating communities in 6 counties.
Over 100,000 working residents commute outside of the county to work every day (76.9%). A
focus should be to work with the private sector and communities within Washington County to
increase the opportunities for people to both live and work in the county.
Several communities have identified that broadband networks are not available. This is equally
important as other typical utilities for growing businesses.
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1. Marketing and Promotion
2/23/2017
Action Step: Market and promote Washington County, enhancing the efforts currently being
implemented by our public and private partners.
Deliverables: With the aid of our city and township partners, the Washington County CDA will
create a business brand for Washington County emphasizes the county's many assets. The
business brand must be crafted to appeal to businesses that are looking for locational or
expansion opportunities. This will be completed by the second quarter of 2017.
Washington County CDA will continue to attend, advertise, co-sponsor and market at various
promotional events including, Minnesota Commercial Real Estate Association (MNCAR) Expo,
MN Real Estate Journal Land Development Conference and MN Real Estate Journal Industrial
Development Summit. This will be ongoing.
Washington County CDA will build partnerships with and become members of local area
chambers of commerce including: Forest Lake Area Chamber, White Bear Lake Area Chamber,
Stillwater Area Chamber, Oakdale Area Chamber, Woodbury Area Chamber, Cottage Grove
Area Chamber of Commerce. Washington County CDA will work with our local chambers to
identify business creation and expansion opportunities and promote tourism. This will begin in
the first quarter of 2017 and be ongoing.
Washington County CDA will build partnerships with talent attraction, retention and training
organizations, local area commercial realtors, developers and site selectors through partnerships
with Minnesota Department of Employment and Economic Development (DEED), Xcel Energy,
MNCAR, Xceligent and Greater MSP. The CDA will receive and distribute new business
inquiries to our local community partners and pass new listings on to the community where the
listing is located. The CDA will work with communities when requested to respond to business
inquiries. This will begin in the first quarter of 2017 and be ongoing.
Action Sten: Promote the quality of life and assets of the county, including the rich diversity of
communities with unique micro -markets.
Deliverables: Each city/township will be asked by the Washington County CDA to tell us what
types of specific business developments are a "good fit" for their community (understanding this
is subject to change). The Washington County Economic Development Plan should not be "one
size fits all". Each city and township will be asked to prepare a listing of their preferred business
types. This information will be used in various situations including individual business
meetings, marketing events and other settings to highlight the opportunities that exist within each
community in Washington County. Each city/township can have their own paragraph, page or
section of the Economic Development Plan and all marketing materials. Washington County
CDA staff will assist with drafting/creation of this information and marketing materials upon
request of the individual cities and townships. This will be an ongoing activity beginning in the
first quarter of 2017 and may be revised and/or updated at any time at the discretion of the cities
and townships.
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2. Economic Development Partnerships & Financial Incentives
Action Step: Help small businesses grow.
Deliverables: Washington County can support existing small businesses and encourage new
entrepreneurism by joining the Metropolitan Consortium of Community Developers' (MCCD)
Open to Business program.
The purpose of the Open to Business program is twofold:
1) to provide small businesses within Washington County direct access to subordinated
financing (business loans), and
2) to provide one-on-one professional business consulting services to small businesses
within the county at no cost to the business.
The professional business consulting services include business plan development and financial
proforma development including cash flow management analysis for entrepreneurs. The direct
business loans offered through the Open to Business program are intended to spur commercial
and industrial business development opportunities in Washington County. Business loans are
available to both start-up and existing businesses and are available for a variety of uses
including; building improvements, acquisition of property, equipment, inventory and working
capital.
The Washington County CDA will coordinate the Open to Business program on behalf of the
communities and will seek the necessary funding required to join. This program will begin as
soon as possible in 2017 and will be ongoing.
Action Sty: Utilize Community Development Block Grant funds for business loans.
Deliverables: The Washington County CDA will use federal Community Development Block
Grant monies for up to 3 small business loans for a total amount not to exceed $25,000 in CDBG
funds over a three-year period. This activity will begin in the third quarter of 2017 and be
ongoing.
Action Step: Capitalize a county -wide commercial building revolving loan program.
Deliverables: The Washington County CDA will explore options to fund commercial building
and improvements. The county -wide commercial building revolving loan program will begin in
2018 or sooner if funding becomes available.
3. Community Assistance
Action Step: Provide predevelopment matching grants to cities, townships and local government
economic development authorities located in Washington County.
Deliverables: The Washington County CDA will explore options to fund a program that will
provide up to ten grants for an amount up to $10,000 per grant (total of $100,000) to cities and
townships in Washington County for predevelopment costs to spur economic development and
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redevelopment. These grant funds are intended to spur new commercial and industrial business
development and redevelopment activities by providing funding up to $10,000 per grant award
on a 1:1 matching basis. This will begin in the first quarter of 2018 and be ongoing contingent
upon the availability offunding.
_Action Sten: Assist communities and local area chambers of commerce with Business Retention
& Enhancement (BR&E) visits, as requested.
Deliverables: The Washington County CDA will stand ready to assist communities organize and
implement BR&E programs and will participate in select business visits upon the request of the
individual community. This will begin in the first quarter of 2017 and will be ongoing.
4. Workforce Development & Talent Recruitment
Action Sten: Partner with businesses, Century College, the Workforce Development Board and
others to identify and address workforce training and housing needs.
Deliverables: The Washington County CDA will be an active member/partner with the
Washington County Workforce Development Board. The Washington County CDA will work
with businesses, our education system, communities and Greater MSP to attract and retain talent
whenever possible. This will begin in the first quarter of 2017 and be ongoing.
Action Step: Assist partners to attract, train and retain talent.
Deliverables: Whenever possible, work with businesses, communities, Greater MSP, Century
College and other community partners to recruit the types of businesses that will entice some of
our residents to work closer to home. This could benefit both the highly trained and less trained
working residents. The Washington County CDA will also work to provide our community
partners with demographic data and labor and housing studies on an ongoing basis. This will
begin the first quarter of 2017 and be ongoing.
5. Strong Infrastructure Foundation
Action Sten: Promote multi -modal transportation and transit opportunities that will stimulate
economic growth in the county.
Deliverables: Washington County CDA staff will be an active participant of the Washington
County Comprehensive Plan Committee. This will begin in the first quarter of 2017 and be
ongoing.
Action Step: Conduct a broadband survey to determine the need for faster broadband
connectivity and the location of any service gaps.
Deliverables: The Washington County CDA will work with communities, when requested, to
develop and implement an online survey to determine the need for better broadband connectivity
within the county. This activity will begin in the first quarter of 2018 and be ongoing.
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The Economic Development Director along with CDA staff, has coordinated monthly meetings
with the Economic Development Work Group who bring a wealth of knowledge and experience
to the process and provide important local perspectives to the economic development plan
update.
Special thanks go out to the following Economic Development Work Group Members for their
participation and assistance in this 2016-2017 Economic Development Plan update:
Aaron Parrish — City Administrator, Forest Lake; Neil Soltis — City Administrator, Scandia;
Bryan Bear — City Administrator, Hugo; Rachel Juba — Planner, Hugo; Scott Neilson — City
Administrator, Mahtomedi; Mark Larson — Superintendent, Mahtomedi School District; Kevin
Corbid — Washington County Deputy Administrator; Tom McCarty — City Administrator,
Stillwater; Bill Turnblad — Community Development Director, Stillwater; Eric Johnson — City
Administrator, Oak Park Heights; Logan Martin — City Administrator, Bayport; Nancy Healy —
Clerk, Baytown Township; Ron Moorse — City Administrator, Afton; Kristina Handt — City
Administrator, Lake Elmo; Ed Shukle — City Administrator, Landfall; Bart Fischer — City
Administrator, Oakdale; Bob Streetar — Community Development Director, Oakdale; Janelle
Schmitz — Assistant Community Development Director, Woodbury; Karl Batalden — Economic
Development & Housing Coordinator, Woodbury; Deb Hill — City Administrator, Newport;
Kevin Walsh — City Administrator, St. Paul Park; Charlene Stevens — City Administrator,
Cottage Grove; Christine Costello — Economic Development Director, Cottage Grove; Melanie
Mesko Lee — City Administrator, Hastings; John Hinzman — Community Development Director,
Hastings; Charlie Vander Aarde — Government Relations Specialist, Metro Cities; Barbara Dacy
— Executive Director, Washington County CDA; Melissa Taphorn — Deputy Executive Director,
Washington County CDA; Chris Eng — Economic Development Director, Washington County
CDA
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Appendix A
Definitions
What is Economic Development?
2/23/2017
No single definition incorporates all of the different strands of economic development.
Typically, economic development can be described in terms of objectives. These are most
commonly described as the creation of jobs and wealth, and the improvement of the quality of
life. Economic development can also be described as a process that influences growth and
restructuring of an economy to enhance the economic well-being of a community.
The main goal of economic development is to improve the economic well-being of a community
through efforts that entail quality job creation, job retention, tax base enhancements and quality
of life. It is therefore worthwhile to define economic base, a good job, and quality of life as it
will relate to the recommendations of this document. As there is no single definition for
economic development, there is no single strategy, policy or program for achieving successful
economic development in Washington County. Thus, the plan laid out in this document is
developed from a comprehensive and broad-based perspective.
What is an Economic Base?
The basic component of an economic base, is the production of goods and/or services that are
exported, bringing outside wealth into the area. The economic base theory argues that economic
development occurs when there is an expansion of the economic base, producing direct, indirect
and induced benefits.
Economic development organizations (including the Washington County CDA) strive to expand
the economic base, producing direct economic benefits. As the export base grows, bringing
more wealth into a community, a portion of these receipts is spent on local consumption creating
a multiplying effect. The rounds of spending create indirect and induced economic benefits,
thereby creating an expansion of jobs, income, value-added — in short, economic development.
What is a Good Job?
A good job is one that is stable and safe, with sufficient work hours, a predictable schedule and
has wages and benefits that can support households, families and communities.
What is Quality of Life?
Location and general quality of life are the most frequently selected categories that residents
liked most about living in Washington County. On a regular basis, Washington County conducts
its Residential Survey to provide residents the opportunity to rate the quality of life in the county,
as well as service delivery, and community characteristics. Survey results are benchmarked
against over 500 counties across the country. In 2016, residents were given a list of potential
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attributes of Washington County and were asked to identify one thing that they liked most about
living in Washington County. The most frequently selected categories were location and quality
of life in general; at least one-quarter of residents selected each of these items. In addition,
outdoor recreational opportunities, ease of travel by car, the overall feeling of safety in
Washington County and the overall image or reputation of Washington County received the
highest average ratings from residents, and when benchmarked against other counties, these
ratings were much higher than other counties in the country. According to Greater MSP and site
selectors, a high quality of life helps create economic development opportunities.
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Appendix B
Economic Profile
Demographic Characteristics
2/23/2017
The following data describes the key characteristics of the county's demography and economic
base, which helps to illuminate its strengths and weaknesses. The information below will
compare the county to itself, the region, the state, and St. Croix County, Wisconsin. Trends in
demographics, income and wages, poverty, labor force, and business establishments are
examined.
Washington County is the fifth largest County and eighth fastest-growing County in
Minnesota. The graph below depicts the history of robust population growth in the county. As
of July 1, 2015, Washington County was home to an estimated population of over a quarter -
million people and is Minnesota's fifth most -populated county. While the strongest growth
occurred between 1990 and 2000, Washington County gained nearly 13,500 people between
2010 and 2015 totaling 251,597 people (a 5.7% increase).
i Po ulation Chan e, 1950-2015
■M Minnesota —*—Washington Co.
300,000 6,000,000
County population is projected to increase about 15.5% by 2035. According to population
projections from the Minnesota State Demographic Center, Washington County is expected to
gain nearly 40,000 net new residents from 2015 to 2035, a 15.5% increase. Recent Metropolitan
Council projections for 2030 estimate about 8,000 more people five years earlier.
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Population Projections, 201572035
2014
2015-2035 Change
Washington Co.
2015
Projection
2025
Projection
2035
Projection
Numeric
Percent
Under 5 years
15,400
16,582
17,066
1,666
10.8%
5-14 years
33,831
31,113
33,647
-184
-0.5%
15-24 years
34,561
32,704
30,060
-4,501 1
-13.0%
25-34 years
29,933
34,367
32,596
2,663
8.9%
35-44 years
30,904
32,072
36,628
5,724
18.5%
45-54 years
41,273
30,710
31,971
-9,302
-22.5%
55-64 years
35,336
40,931
30,486
-4,850
-13.7%
65-74 years
21,557
34,887
40,527
18,970 1
88.0%
75-84 years
10,081
21,059
34,069
23,988
238.0%
85 years & over
3,260
4,416
8,875
5,615
172.2%
Total
256,136
278,841
295,925
39,789
15.5%
Source: Minnesota State Demographic Center
2/23/2017
Overall, Washington County has a younger population than the state of Minnesota, with just 11.7
percent of its population aged 65 years and over, compared to 13.6 percent statewide.
Consequently, Washington County has a higher percentage of people in the 25- to 54 -year-old
age group, typically considered the prime working years, and a higher percentage of school -aged
children. The county did have a slightly smaller percentage of 15 -24 -year-olds.
Percentage of Population by Age Group,
2014
Washington Co. L Minnesota
Under 5 years
16.2% 6.5%
5-14 years
14.8% 13.3% I
15-24 years
12.3% 13.4%
25-34 years
; 12.1% ', 13.7% j
35-44 years
23.5% 12.5%
45-54 years
16.4% 14.6%
55-64 years
I�
12.9% 116% ?
65-74 years
75-84 years
3. % 74.390
85 years & over
1.4%'-' 2.0%
Source: 2010-2014 American Community Survey
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Resident income is one of the highest in the state. The graph below depicts Washington
County's per capita income as the third highest in the state of Minnesota. This high level of
personal incomes means that there is a strong purchasing power, which is an opportunity to
support new development. This is further substantiated by data on household median income
and net worth statistics.
2014 Per Capita Incomes
Minnesota $31,642
Anoka Co. $31,474
Carver Co. $38,638
Dakota Co. $35,755
3 f
Hennepin Co. $38,125
Ramsey Co. $30,076
Scott Co. $35,690
Washington Co. $37,841
$20,000 $25,000 $30,000 $35,000 $40,000
Source: American Community Survey
According to 2015 estimates, Washington County's median income is $87,995, 39% higher than
statewide, and an increase 5.3% over the year. Washington County had an average net worth of
$793,314 in 2013 and a median net worth of $216,586. Median net worth is generally a more
accurate depiction of wealth than the average figure. A few households with very large net worth
can significantly skew the average. As a comparison, the metropolitan area had an average net
worth of $586,479 and median net worth of $111,991.
This is also reflected in the data about employed residents over the age of 16; median earnings
are $59,262. Washington County had an estimated 134,000 employed residents who were at
least 16 years of age, in 2015. The largest percentage of jobs were found within Management,
Business, and Financial Operations; followed by Office and Administrative Support; and
Education, Legal, Community Services, Arts, and Media occupations.
Washington County Occupational Statistics, 2010-2014
American Community Survey
Occupational Group
Employment
% Male % Female
Median
Earnings
Civilian employed population 16 years & over
133,637
51.5% 48.5%
$59,262
Management, business, and financial
25,917
57.4% 42.6%
$85,220
Office and administrative support
16,912
29.1% 70.9%
$41,369
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Education, legal, community service, arts, and
media
15,167
30.8%
69.2%
$54,369
Sales
13,748
50.8%
49.2%
$59,588
Healthcare practitioner
10,159
29.0%
71.0%
$82,993
Computer, engineering, and science
9,702
74.3%
25.7%
$88,244
Food preparation and serving related
6,283
39.4%
60.6916
$23,086
Personal care and service
5,246
32.6%
67.4%
$31,857
Production
5,069
70.0%
30.0%
$50,204
Construction and extraction
4,950
93.1%
6.9%
$56,169
Transportation
3,788
95.9%
4.1%
$55,609
Building and grounds cleaning and
maintenance
3,555
66.8%
33.2%
$36,003
Protective service
3,413
72.1%
27.9%
$52,489
Installation, maintenance, and repair
3,337
95.4%
4.6%
$44,289
Healthcare support
3,100
12.1%
87.9%
$30,941
Material moving 1
2,980
83.9%
16.1%
$36,379
Farming, fishing, and forestry
311
100.0%
0.0%
$21,379
Source: American Community Survey
Three-fourths of employed residents commute to work outside of the county._ The table
below shows that about 77% of those who are employed residents in Washington County
commute outside of the county to work, while about 58% of those employed within the county
commute into the county.
Washington Co. Inflow/Outflow Job Counts (All Jobs), 2014
2014
Count
Share
Employed in Washington Co.
72,124
100.0%
Employed in Wash. Co. but Living Outside
41,679
57.8%
Employed and Living in Washington Co.
30,445
42.2%
Living in Washington Co.
Living in Wash. Co. but Employed Outside
Living and Employed in Washington Co.
131,826
101,381
30,445
100.0%
76.9%
23.1%
_
Source: U.S. Census Bureau, OnrheMap
The average annual wage by industry sector is lower than employed resident household
income.
Retail trade is the largest -employing industry sector (over 13,000 jobs) in Washington County,
accounting for about one -in -six total jobs in the county. Average annual wages within retail
trade, $25,168, are over 40 percent lower than the average annual wage for the total of all
industries. The second largest industry in Washington County is health care and social
assistance, with over 11,400 jobs at 546 establishments. The average wage for health care and
social assistance jobs is $48,205, which is about 10% higher than the average wage for the total
of all industries. Accommodation and food services is the third largest -employing industry, with
8,949 jobs at 383 establishments. The average annual wage is only $16,328. Manufacturing is
14
Draft
2/23/2017
the fourth largest -employing industry with nearly 8,000 jobs and an average annual wage of
$63,908. Education services is the fifth largest -employing industry with 7,330 jobs and an
average annual wage of $42,796. It should be noted that over 87% of Washington County's
labor force has a Bachelor's degree or higher.
Washington County Industry Employment Statistics,
2015
Number of ' Percent Avg.
Total Payroll Annual
Jobs of Jobs Wage
NAICS Industry Title
Number of
Firms
Total, All Industries
5,231
79,112
100.0%
$3,478,314,461
$43,992
Retail Trade
684
13,051
16.5%
$328,820,246
$25,168
Health Care & Social Assistance
546
11,408
14.4%
$550,298,480
$48,204
Accommodation &Food
Services
383
8,949
11.3%
$146,562,210
$16,328
Manufacturing
203
7,990
10.1%
$510,327,272
$63,908
Educational Services
139
7,330
9.3%
$315,013,496
$42,796
Public Administration
54
3,617
4.6%
$187,901,224
$51,896
Construction
516
3,338
4.2%
$194,695,496
$58,292
Finance & Insurance
337
3,306
4.2%
$250,901,273
$75,868
Professional, Scientific, &
Technical Services
643
3,177
4.0%
$207,917,173
$65,312
Administrative & Support
Services
268
3,135
4.0%
$142,493,483
$45,552
Other Services
578
3,074
3.9%
$79,404,718
$25,792
Transportation & Warehousing
138
2,584
3.3%
$109,423,567
$42,276
Arts, Entertainment, &
Recreation
123
2,121
2.7%
$34,322,013
$16,172
Wholesale Trade
203
1,957
2.5%
$142,004,378
$72,540
Management of Companies
43
1,503
1.9%
$160,012,587
$107,016
Real Estate, Rental & Leasing
258
790
1.0%
$29,425,257
$37,180
Agriculture
44
712
0.9%
$24,859,143
$35,048
Information
60
699
0.9%
$25,318,426
$36,244
Utilities
7
298
0.4%
$33,628,441
$112,788
Source: DEED Quarterly Census of Employment and Wages (QCEW)
County job growth has exceeded prerecession levels. According to DEED's Quarterly
Census of Employment and Wages program as shown in the graph below, Washington County
was home to 5,231 business establishments providing nearly 80,000 covered jobs through 2015,
with a total annual payroll of nearly $3.5 billion. Washington County continues to see new jobs
being added within the county each year since 2009 and has exceeded its pre -recession levels.
15
Draft
Annual Labor Force Estimates
A Minnesota
140,000
135,000
QJ
U
L° 130,000
0
a 125,000
J
Q
0 120,000
Washington Co. 137,6683,050,000
136,504 -A,
132,04004r� M 3,000,000
Z
2,950,000
0
2,900,000
Q
O
2,850,000 T
o
115,000 2,800,000
110,000 2,750,000
105,000 2,700,000
O a4 N M 'It Ln l0 r, 00 M O r -I N M 'qt Ln
O O O O O O O O O O ri r -I ri ri ri r -I
O O O O O O O O O O O O O O O O
N N N N N N N fy N N N ',
N N N fV
Source: UEE� Loca! Area Unemployment Statistics (LAOS) program
2/23/2017
The County is expected to see a continued gradual increase in the labor force over the next
decade. Over the last ten years, the county's labor force has grown by 12,077 people, as depicted
in the table below. Washington County's labor force grew more than double the state rate with a
9.6 percent increase. Comparatively, the state's total labor force grew by 4.7 percent.
Washington County has experienced overall growth in the size of available labor force over the
last 15 years. Washington County has a higher percentage than the state of people in the 25- to
54 -year old age group, typically considered the prime working years and a higher percentage of
school -aged children. The County is expected to see a continued gradual increase in the labor
force over the next decade, gaining approximately 3,700 net new workers between 2015 and
2025.
Labor Force Projections,
2015-2025
Washington Co.
2015
2025
2015-2025 Change
Labor Force
Projection
Labor
Force
Projection
Numeric
Percent
16 to 19 years
8,382
6,891
-1,492
-17.8%
20 to 24 years
11,479
13,081
1,602
14.0%
25 to 44 years
54,206
59,197
4,991
9.2%
45 to 54 years
36,816
27,393
-9,422
-25.6%
55 to 64 years
24,877
28,815
3,939
15.8%
65 to 74 years
5,303
8,582
3,279
61.8%
75 years & over
881
1,681
801
1 91.0%
Total Labor Force
141,943
145,642
3,699
1 2.6%
Source: Minnesota State Demographic Center,
2010-2014 American Community Survey 5 -Year Estimates
16
Draft
Washington County's unemployment rate of 3.2% is lower than the state average
unemployment rate.
Unemployment Rates, 2000-2015
9.0 Minnesota --O—Washington Co.
8.0
7.0
6.0
c 5.0
v
4.0
0
a 3.0
E
2.0
` 1.0
0.0
2/23/2017
17
Draft
Distinguishing Industries
2/23/2017
Washington County stands out from the state and the Twin Cities Metro Area for its extremely
high concentration of employment in wood product manufacturing. Concentration is measured
with location quotients, which compare the share of employment in a particular industry locally,
to the share of employment that same industry constitutes nationally.
Washington County Distinguishing Industries,
2615
NAICS Industry Title
Number
Number
Avg. Annual
Total Payroll
Location
Of Firms
of Jobs
Wages
Quotient
Total, All Industries
5,231
79,112 $3,478,314,461
$43,992
-
Wood Product Manufacturing
11
2,771
$177,493,275
$64,324
12.67
Amusement, Gambling, &
93
2,002
$31,666,888
$15,808
2.20
Recreation Industries
$17,784
Sporting Goods, Hobby, Book,
38
788
$14,001,093
2.17
& Music Stores
General Merchandise Stores
39
3,587
$72,358,293
$20,176
1.96
Building Material, Garden
45
1,363
$39,409,371
$29,016
1.92
Equip. & Supplies Dealers
Miscellaneous Manufacturing
41
634
$37,997,635
$59,904
1.88
Personal & Laundry Services
206
1,508
$30,856,025
$20,436
1.87
Ambulatory Health Care 346
5,670
$360,439,736
$63,492
1.44
Services
$64,784,818
Nursing & Residential Care
83
2,602
$24,908
1.38
Facilities
Food Services & Drinking
350
8,243
$132,567,421
$16,068
1.30
Places
Source: DEED Quarterly Census of Employment and Wages (QCEW)
18
Draft
2/23/2017
Private sector employment data between 2010 and 2015 suggests that Washington County is
strong in retail trade, health care and social assistance, accommodation and food services,
manufacturing, construction, finance and insurance and professional & technical services.
Largest Growing Industries 2013-2015 .(Industry Title)
Avg.
Wage
Job Growth
Percent
Total, All Industries
$43,472
Number of Employees
Number
Firms
Ambulatory Health Care Services
$63,492
705
14.2%
Wood Product Manufacturing
$64,324
369
15.4%
Professional, SCI & Technical Services
$65,572
328
11.6%
Food & Beverage Stores
$22,464
327
17.0%
Food Services & Drinking Places
$16,068
278
3.5%
Sporting Goods, Book & Music Stores
$17,784
275
53.6%
Management of Companies
$107,016
153
11.3%
Food Manufacturing
$32,500
145
35.1%
Heavy & Civil Engineering Construction
$78,624
131
41.5%
Miscellaneous Manufacturing
$59,904
129
1 25.5%
Small businesses are vital to Washington County's economy. 57% of Washington county
businesses have 1-4 employees (totaling 3,184 firms) and another 29% had between 5-19
employees, adding up to 86% of the Washington County businesses have less than 20
employees. Washington County is therefore home to 17,847 self-employed businesses or "non -
employers" in 2014 (defined as businesses without employees that are subject to federal income
tax). Washington County witnessed a 15.2% increase in non -employers over the past decade,
higher than such growth at the state level. Total receipts from non -employers in Washington
County equaled about $810 million in 2014.
Employers by Size Class, 2014
Washington Co.
Minnesota
Number of Employees
Number
Firms
Percentof
of Firms
Percent of Flans
1-4
3,184
57.0%
53.9%
5-9
942
16.9%
17.7%
10-19
679
12.2%
13.4%
20-49
506
9.1%
9.1%
50-99
163
2.9%
3.2%
100-249
84
1.5%
1.9%
250-499
20
0.4%
0.5%
500 or more
9
0.2%
0.3%
Total Firms
5,587
100.0%
100.0%
Source: U.S. Census, County
Business Patterns
19
RESOLUTION 2015-31
A RESOLUTION OF THE ECOMONIC DEVELOPMENT AUTHORY OF THE
CITY OF HUGO
SUPPORTING THE ECONOMIC DEVLEOPMENT PLAN FOR THE COUNTY
OF WASHINTON
WHEREAS, the City of Hugo Economic Development Authority per Resolution 2016-1
supported the legislation to authorize the County of Washington to confer economic
development powers upon the Washington County Housing and Redevelopment
Authority; and
WHEREAS, on May 6, 2014, the County of Washington Board of Commissioners
approved an Economic Development Strategic Plan; and
WHEREAS, on June 4, 2016, the Washington County Board of Commissioners approved
the creation of the Washington County Community Development Agency (CDA).
WHEREAS, the Washington County CDA hired a full time Economic Development
Director to serve as the point of contact and coordinate the economic development efforts
within the county including updating and implementing the 2014 Strategic Plan.
WHEREAS, the Washington County CDA has completed an Economic Development
Plan that outlines actions steps and deliverables on how the County will be active in
economic development;
WHEREAS, the City of Hugo has been attending economic development workgroup
meetings and provided input on the plan;
NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE BOARD OF
COMMISSIONERS OF THE ECONOMIC DEVELOPMENT AUTHORITY OF THE
CITY OF HUGO, MINNESOTA, that it should and hereby adopts this resolution to
supporting the Washington County Economic Development Plan.
WHEREUPON, a vote being taken upon the motion, the following members voted in
favor:
The following voted against:
ADOPTED by the City Council this 21 st day of March, 2017
Tom Weidt
President, Hugo EDA
ATTEST:
Bryan Bear
Executive Director, Hugo EDA