2018 Economic Development Annual Report

2018 Economic Development Annual Report Prepared by: Erik Thorvig, Economic Development Coordinator

City of Blaine 10801 Town Square Drive NE, Blaine MN

BlaineMN.gov

2018 Economic Development Annual Report

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Content Page 5

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ABOUT BLAINE

POPULATION AND BEYOND

DEMOGRAPHICS & EMPLOYMENT Population............................................................................. 7 Households............................................................................ 7 Median Household Income.................................................. 8 Median Home Value.............................................................. 8 Number of Jobs..................................................................... 9 Blaine Employment Sector................................................... 9

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RESIDENTIAL, INDUSTRIAL & COMMERCIAL

OUTREACH & PROGRAMS

CONSTRUCTION & DEVELOPMENT

BUSINESS RESOURCES

Construction Values............................................................ 11 Permits................................................................................. 12 Residential Construction & Growth................................... 13 Industrial Development & Expansions.............................. 14 Commercial Development.................................................. 15 Open in 2018....................................................................... 16

Business Employment........................................................ 19 Blaine Unemployment Rate................................................ 21 Business Outreach.............................................................. 27 Home Loan Improvement Program................................... 23 EDA Fire Suppression Grant Program................................ 23 Small Business Loan Program............................................ 23 EDA Land & Redevelopment Activity................................. 24

BlaineMN.gov

2018 Economic Development Annual Report

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About Blaine

Blaine is a rapidly growing metropolitan community situated 11 miles north of downtown Minneapolis. The City encompasses 34 square miles with a population of 65,369.

The City’s park and recreation system provide a variety of leisure experiences. Blaine is also home to the National Sports Center, TPC golf course and Four Season’s Curling Club.

Blaine is the fastest growing suburb in the Twin Cities metro area. Blaine’s population has grown by over 8,000 residents since the 2010 census. Blaine continues to rank high in new housing construction in the metro area.

Blaine has a strong and growing industrial and commercial business sector. Blaine is home to eleven industrial parks and nearly 1,400 businesses, including Aveda Corporation, Infinite Campus, Bermo Inc., Dayton Rogers Manufacturing and Northtown Shopping Mall.

Over 24,000 people are employed in the City of Blaine by our businesses. With competitive land prices, a strong labor pool and excellent freeway access to Interstate 35W and Highways 10 and 65, Blaine has an abundant supply of development opportunities for growing and emerging businesses. The Anoka County Airport is located in Blaine, which is the Metro Area’s busiest reliever airport.

BlaineMN.gov

DEMOGRAPHICS & EMPLOYMENT • Population • Median Household Income • Number of Jobs

• Households • Median Home Value • Number of Businesses

2018 Economic Development Annual Report

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POPULATION 2017 Population • Blaine

2017 Population • Metro*



   

65,369* • Blaine

3,075,563 • Metro

HOUSEHOLDS 2017 Households • Blaine

2017 Housing Units • Metro*



 

23,946* • Blaine 1,200,840 • Metro

*Source: Metropolitan Council, 2017 Community Estimates BlaineMN.gov

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2018 Economic Development Annual Report

MEDIAN HOUSEHOLD INCOME Income • Anoka County

2017 • $76,800

Income • Metro

2017 • $73,700 Income • Blaine

2015

2017 • $80,400*

MEDIAN HOME VALUES Home Value • Blaine

2017 • $202,100*

*Source: Metropolitan Council, 2017 Community Estimates BlaineMN.gov

Home Value • Metro

2017 • $230,700

2018 Economic Development Annual Report

NUMBER OF JOBS 2017 Employment • Blaine

2017 Employment • Metro*

 

 24,417* • Blaine

1,737,384 • Metro *

BLAINE EMPLOYMENT SECTOR 2017 Blaine is home to over 1,400 Businesses. The highest employers by percentage are retailers.**

BLAINE EMPLOYMENT SECTOR (2017)

4.9%

18.9%

Retail Trade

18.9%

Manufacturing

13.0%

Accommodation & Food Services

11.8%

Health Care & Social Assistance

11.1%

Educational Services

7.7%

Other Services

5.2%

Transportation & Warehousing

4.9%

5.2%

7.7% 13% 11.1% 11.8%

*Source: Metropolitan Council, 2017 Community Estimates ** Source: City of Blaine Business List BlaineMN.gov

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CONSTRUCTION & DEVELOPMENT • Construction Values • Permits • Residential Construction & Growth

• Industrial Development & Expansions • Commercial Development

2018 Economic Development Annual Report

SINGLE FAMILY RESIDENTIAL YEAR

VALUATION

2018

$84,726,565

2017

$93,423,052

2016

$95,306,271

2015

$89,062,293

2014

$84,612,802

2013

$88,709,550

COMMERCIAL/INDUSTRIAL/MULTI-FAMILY* YEAR

VALUATION

2018

$121,772,262

2017

$67,251,694

2016

$80,052,296

2015

$61,837,777

2014

$32,847,000

2013

$30,725,000

TOTAL VALUATION YEAR

VALUATION

2018

$206,498,827

2017

$160,674,746

2016

$175,358,567

2015

$150,900,070

2014

$117,459,802

2013

$119,424,550

*Based on new construction, additions, remodels and tenant finish.

Source: City of Blaine Permit Records BlaineMN.gov

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2018 Economic Development Annual Report

MOST VALUABLE PERMITS IN 2018

NAME

ADDRESS

VALUATION

DESCRIPTION

Legends of Blaine

10826 Austin Street NE

$33,500,000

192 Unit Senior Apartment

Sunrise Elementary School

12576 Lever Street NE

$26,000,000

New Elementary School for A-H District

Eagle Brook Church

3603 95th Avenue NE

$8,750,000

Church Expansion

Marriott Fairfield Inn

10643 Baltimore Street NE

$7,853,600

82 Room Hotel

Crown Iron Works

9879 Naples Street NE

$5,310,000

70,000 sf. Office/ R&D Facility

Target

1500 109th Avenue NE

$4,450,000

Remodel of Retail Location

BlaineMN.gov

2018 Economic Development Annual Report

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RESIDENTIAL CONSTRUCTION AND GROWTH In 2018, a total of 457 units were permitted ranking Blaine fourth in overall units permitted for Minneapolis/ St. Paul suburbs behind Lakeville, Maple Grove and Woodbury. This was an increase from 375 units in 2017. The increase was primarily due to the start of the Legends of Blaine, a 198 unit senior apartment developed by Dominium. In 2018, a 138 unit, market rate apartment project called Cedar Point was approved at the corner of 117th Avenue NE and Ulysses Street NE. This project will begin in 2019.

Blaine saw a decrease in single family home permits. A total of 259 single family permits were issued, down from 327 in 2017. Though the amount of single family houses constructed went down, the average permit value increased significantly from $285,697 in 2017 to $327,129 in 2018. With the residential growth, Blaine is now the largest city in Anoka County and 12th largest in Minnesota.

New Residential Units 2007-2018 457

2018

375

2017

581

2016 2015

528 392

2014

377

2013

399

2012 2011

336

2010

331 283

2009

311

2008

336

2007

100

200

300

400

500

600

700

BlaineMN.gov

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2018 Economic Development Annual Report

INDUSTRIAL DEVELOPMENT & EXPANSIONS Crown Iron Works • • • •

70,000 square foot office/R&D facility.

New business to Blaine bringing over 100 jobs.

Estimated project cost of $5,310,000.

Expected completion in July 2019.

Protofab Engineering •

•

44,000 square foot building at 3601 85th Avenue NE. Expansion and new location of existing Blaine business.

Estimated project cost of $3,500,000.

•

Expected completion in March 2019.

•

Asphalt Concrete Solutions • •

11,200 square foot building at 10351 Naples Street NE. Estimated project cost of $1,200,000

•

Expected completion in winter 2019.

BlaineMN.gov

2018 Economic Development Annual Report

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COMMERCIAL DEVELOPMENT Hy-Vee •

85,000 square foot grocery store with convenience store and car was located at the corner of Main Street NE and Jefferson Street NE. Construction is expected to begin in the spring of 2019.

Harbor Freight •

Located at 117th Avenue NE and Ulysses Street NE, the 16,000 square foot retail tool store will be completed in the spring of 2019.

Marriott Fairfield Inn and Suites •

New 80 room hotel located at 10611 Baltimore Street NE. Expected opening in the summer of 2019.

Sunrise Elementary School •

New elementary school located at Lever Street NE and Main Street NE for Anoka-Hennepin District #11. Open for 2019 school year.

Abra Auto Body •

18,000 square foot Abra Auto Body located at 8600 Central Avenue NE on lot formally owned by the Blaine Economic Development Authority. Expected completion in the spring of 2019.

Auto Zone/Xperience Fitness •

Remodel of the former K-Mart, near Northtown Mall, with Auto Zone and Xperience Fitness as new tenants.

Kwik Trip •

New gas/convenience store located at the northeast corner of 117th Avenue NE and Ulysses Street NE. Expected to open later in 2019.

Imagine Smiles •

Located in the Blaine Town Square, the Imagine Center is a 16,500 square foot office building with the primary user being the Imagine Smiles dentist office. Expected to be completed in 2019.

Lexington Meadows •

Located at the corner of 109th Avenue NE and Lexington Avenue NE, Lexington Meadows is a 32 acre commercial development by Wellington Development. Site grading began in 2018 and the project will take several years to complete.

BlaineMN.gov

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2018 Economic Development Annual Report

OPENED IN 2018 Twin Cities Orthopedics •

11225 Ulysses Street NE

•

48,000 square foot clinic, surgery center and orthopedic urgent care center.

•

$7.2 million project cost.

Child and Teen Medical Center

Kwik Trip •

105th Avenue NE and Radisson Road NE

•

Kwik Trips third store in Blaine with two more expected to open in 2019.

•

Accomplished redevelopment of a prominent corner.

BlaineMN.gov

•

111th Avenue NE and Ulysses Street NE

•

13,000 square foot medical office building

developed by MSP Commercial.

2018 Economic Development Annual Report

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Panera Bread •

Located in Victory Village near Target on 109th Avenue NE.

•

Completed the Victory Village commercial development.

Tumble Fresh Laundry • Redevelopment of former vacant gas station at 105th and University Avenue NE. • Developed by Linn Companies.

• Site was sold by the Blaine Economic Development Authority.

BlaineMN.gov

BLAINE RESOURCES • Business Employment • Business Outreach • Home Loan Improvement Program

• EDA Fire Suppression Grant Program • Blaine Small Business Loan Program • EDA Land & Redevelopment Activity

2018 Economic Development Annual Report

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BUSINESS EMPLOYMENT The highest number of jobs ever in the City of Blaine occurred during 2018 with over 24,000 jobs.

Employment has continued to rise since the end of the Great Recession and this trend is anticipated to continue. Metropolitan Council forecast over 31,000 jobs in Blaine by 2040. This is a positive indicator of the business growth that is occurring.

2018 saw an overall decline in unemployment rates beginning at 2.3% in January and falling to 2.0%.

Unemployment rates are better than pre-recession rates and the 2.3% is the lowest since 1999.

Unemployment rates peaked in July, 2009 at 8.6% and have been continuously declining since.

Blaine Top Employers Bermo, Inc. - 236 Home Depot Stores - 237 Target Stores - 270 National Sports Center - 297 Walmart Stores - 312 Carley Foundry - 420 Cub Foods - 433 Infinite Campus - 500 Aveda - 730 1000

900

800

700

600

500

400

300

200

100

BlaineMN.gov

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2018 Economic Development Annual Report

BUSINESS EMPLOYMENT

24,471

2017

23,986

2016

23,578

2015

23,099

2014

23,000

2013

21,702

2012

20,598

2011

20,561 25,000

BlaineMN.gov

24,000

23,000

22,000

21,000

2010

20,000

19,000

18,000

2018 Economic Development Annual Report

BLAINE UNEMPLOYMENT RATE

2.0%

2018

2.3%

2017

2.9%

2016 2015

4.0% 4.7%

2014

6.0%

2013

6.2%

2012

7.3%

2011

8.4%

2010

7.5%

2009

4.7%

2008

1%

2%

3%

4%

5%

6%

7%

8%

9%

BlaineMN.gov

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2018 Economic Development Annual Report

BUSINESS OUTREACH 3M Championship Golf Tournament The City of Blaine hosted a hospitality tent at the 3M Championship in August. Blaine staff was present Friday – Sunday. Friday morning focused on economic development partnerships with Anoka County cities. Friday– Sunday had a filled tent with Blaine businesses, real estate brokers/developers and other invited guests. For the third year in a row, all allotted tickets were distributed to our guests attending the event.

Business Visits This year staff and elected officials visited with 24 Blaine Businesses. The visits presented a great opportunity to gain insight into each company’s business condition, employment size and operations.

All American Title

Anoka County Library

Imagine Smiles

Aveda Streamworks

Village Bank

Adhue Graphic Resources

Crest View Senior Housing

Northtown Mall

JP Ecommerce

Carlisle Fluid

Specialty Welding, Inc.

General Pattern

Hart Chiropractic

Premier Banks

3M Open

Connexus Energy

Walters Recycling

Karl Dungs, Inc.

National Sports Center

Manning Transfer

Anoka County Brokers Event On October 17, 2018 the City of Blaine in partnership with Anoka County and other cities hosted the 4th Annual Upriver Broker’s Event at the Bunker Hills Event Center in Coon Rapids. Over 80 real estate brokers and developers attended the event to hear about opportunities in Blaine and Anoka County.

Community Representation Blaine Economic Development staff represents Blaine on the Anoka County Workforce Development Board, GreaterMSP Partner Council and the Anoka Technical College Advisory Committee.

BlaineMN.gov

2018 Economic Development Annual Report

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HOME LOAN IMPROVEMENT PROGRAM Maintaining existing housing stock is a key component to a strong economic climate in the City of Blaine.

According to the Metropolitan Council, the average home value in Blaine is $202,000, up from $189,000 in 2017. This is slightly below the average for Anoka County which is $205,000. The average home value for the 7-County metropolitan region is $230,000. There are a little over 20,000 housing structures in Blaine with 29% of those constructed prior to 1980. Though the home loan program is available to any home owner, the general focus is to encourage those with older homes to make improvements and maintain the housing stock. Changes were made in 2016 that increased the maximum loan amount from $25,000 to $50,000. Income limits were also removed which opened the program to any Blaine homeowner.

There are currently 66 outstanding loans with 10 new loans originated in 2017, totaling $127,494.

EDA FIRE SUPPRESSION GRANT PROGRAM In 2016, the Blaine EDA reestablished the fire suppression grant program to encourage owners of commercial and industrial buildings to install fire suppression. In 2018, $64,616 in grant funds was provided to four different property owners to install fire suppression.

SMALL BUSINESS LOAN PROGRAM In 2018, the Blaine EDA established a small business loan program to encourage reinvestment in existing commercial and industrial properties. The intent of this program is to provide additional financial assistance to small business owners who are improving an existing building and/or redeveloping a commercial or industrial property. In general projects will increase tax base, improve blighted properties, increase employment, and bring properties into conformance with existing city and state codes. The Blaine EDA provided $250,000 in initial funding for the program. The maximum loan amount is $75,000.

BlaineMN.gov

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2018 Economic Development Annual Report

EDA LAND & REDEVELOPMENT ACTIVITY Purchase of 1409 - 105th Avenue NE The Blaine EDA purchased 1409 105th Avenue NE in September, 2018. The building is located in an identified redevelopment area in the 2040 Comprehensive Plan. The Blaine EDA is currently leasing the building however is actively working adjacent property owners and developers to redevelop the area for a higher and better use.

Sale of 8600 Central Avenue NE The Blaine EDA purchased 2.46 acres near 86th Avenue NE and Central Avenue NE in 1995. The site had been actively marketed since 2015 and Oppidan Development purchased the site in 2018 to construct a new Abra Auto Body.

Sale of 10501 University Avenue NE The Blaine EDA purchased 10501 University Avenue NE in 2017. The site contained a vacant gas station that had become blighted. The Blaine EDA cleared the site and marketed the property for sale. The site was sold to Linn Companies in 2018 who constructed a Tumble Fresh Coin Laundry facility.

Demolition of 10525 Nassau Street NE The EDA purchased 10525 Nassau Street NE and 2111 105th Avenue NE in June, 2017. The building at 10525 Nassau Street NE was demolished in 2018. The building at 2111 105th Avenue NE is expected to be demolished in 2019. This activity is part of a continued effort to redevelop portions of the 105th Avenue NE/Radisson Road NE corridor.

Town Square Drive Property Adjacent to City Hall The City of Blaine owns 7.39 acres of land along Town Square Drive, adjacent to Blaine City Hall. This land was deeded by the Blaine EDA to the City of Blaine in 2014. The site was identified as the preferred community center site in 2016; however the referendum to build a community center did not pass. The owner of Imagine Smiles Dentistry is proposing to build a 16,500 square foot multi-tenant office building on 1.58 acres of the property. The remaining 5.81 acres will be analyzed and discussed to determine the appropriate future use.

Pheasant Ridge Drive NE - Lexington Preserve Business Park The Blaine EDA owns a 21.76 acre site on Pheasant Ridge Drive NE This site was purchased in 1985 and portions of it have been sold for industrial development. In 2017, a wetland delineation was completed identifying 3.41 acres of upland within an approximately 7 acre buildable area. The city has been working with several potential businesses/developers to develop the site. It’s likely the site can accommodate at 75,000 square foot industrial building.

BlaineMN.gov

 Get In Touch 10801 Town Square Drive NE, Blaine, MN 55449 T: 763-784-6700 BlaineMN.gov

City of Blaine 10801 Town Square Drive NE, Blaine MN