Burton Property (Rice Lake) Marketplace Review

B U R TO N PROPERTY MARKETPLACE REVIEW Final Report: March 26, 2018

1 Context & Resident Profile

5 Retail Market This section evaluates retail supply and purchasing power in the region around the planning area,.

11 Office Market This section presents data describing the office market in the region and the prospects for more office space in the planning area.

15 Housing Market This section describes conditions in the housing market and their relevance to the planning area.

ARCHITECTURE | ENGINEERING | ENVIRONMENTAL FUNDING | PLANNING | SURVEYING

(THIS PAGE WAS LEFT INTENTIONALLY BLANK FOR DOUBLE-SIDED PRINTING)

1

CONTEXT & RESIDENT PROFILE This market study is for a 79-acre development opportunity off of South Access Road and Main Street in the southern portion of the City of Rice Lake. The land is currently undeveloped and being farmed.

The site is surrounded by two commercial corridors (South Access Road and Main Street) to the west, Moon Lake and Moon Lake Park to the east, a residential neighborhood to the north and a mix of residential developments (condos, mobile home park, etc.) to the south.

South Access Road (CTH O) connects US-53 to Main Street, carrying 12,000-15,000 vehicles per day.

Main Street, carrying 13,000-14,000 vehicles per day, runs north/south connecting all portions of the City from downtown to commercial corridors to residential neighborhoods.

Figure 1: Burton Property Location Map Source: Barron County GIS Mapping

Figure 2: Regional Context Map Source: ESRI Business Analyst Online

REGIONAL CONTEXT

The City of Rice Lake is in Barron County in northwest Wisconsin, approximately 60 miles north of the City of Eau Claire and Interstate 94.

Rice Lake is the largest community in Barron County (8,600 Pop.) with the next largest community being the City of Barron (3,300).

As shown in Figure 2, Barron County is near two micropolitan areas (Eau Claire and Menomonie), and within 90 minutes of the greater Minneapolis metropolitan area.

These larger marketplaces have a significant retail pull factor, impacting the surrounding marketplaces.

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Figure 3: Place of Work vs. Place of Residence Source: Economic Review for Barron County (EMSI)

The Eau Claire metropolitan area, 60 minutes to the south, has the greatest impact to the Rice Lake’s marketplace.

Rice Lake’s proximity to US-53, which carries 10,000-12,500 vehicles a day, increases its connectivity to surrounding communities. This connectivity impacts the marketplace and the workforce in the City.

Figure 3 (above) shows place of work vs. place of residence in 2016.

Rice Lake has the highest number of inbound commuters, indicating the city provides jobs for communities outside of the city limits. Based on the 2016 Economy Overview (completed by Emsi), there were 23,243 workers employed in Barron County with 11,005 workers employed in Rice Lake. Of those working in Rice Lake, 8,276 also live in Rice Lake.

This equates to 25% of the City’s workforce commuting to the city.

PEER COMMUNITIES

To more fully understand Rice Lake’s retail, office and housing marketplaces, it is necessary to review key indicators to decipher resident spending potential and habits.

This analysis will also compare Rice Lake’s marketplace profile with statistics from other comparable peer communities (i.e. Antigo, Plymouth and Ripon). These peer communities were chosen as being comparable to Rice Lake due to their total population, household, age, proximity to larger marketplaces/ highway and income levels.

Population & Age

Population data can demonstrate how many current and potential “future” consumers are in an area.

According to the ERSI Business Analyst,the City’s 2017 population was estimated at 8,597 with an average household size of 2.1 persons.

Burton Site | Market Analysis & Conceptual Plan

Age is an indicator for tastes, preferences and needs. Based on the 2017 data from ESRI Business Analyst Online, Rice Lake’s median age is 42.9, which is the same as Plymouth and higher than the other regional peer communities.

This older demographic has a direct impact on the types of goods and services businesses provide.

Income Indicators

Income indicators (e.g. per capita income, median family income, and median household income) help identify disposal income within a community, which gives clues to consumer purchasing preferences.

For example, as income rises so does spending on luxury items (e.g. buying name brand vs. generic). Of the peer communities, Rice Lake has the second lowest per capita income at $26,158. Antigo has the lowest per capita income ($22,534).

MARKETING PROFILE

Age Pyramid

Rice Lake City, WI Geography: Place

MARKETING PROFILE

The largest group:

Plymouth City, WI

2017 Male Population Age 25-29 (Esri)

Geography: Place

Ag

The smallest group:

3 Population 2017 Male Age 80-84 (Esri)

Figure 4: Resident Profile Source: ESRI Business Analyst

KEY FACTS

MARKETING PROFILE

Plymouth, WI MARKETING PROFILEKEY FACTS Age Pyramid

Antigo City, WI

Ripon City, WI

Rice Lake, WI

8,597 Population

42.9

Geography: Place

Median Age

2.1

$40,111

Average Household Size

Median Household Income

ANNUAL HOUSEHOLD SPENDING KEY FACTS Antigo, WI

Apparel & Services

2.2 $3,871

Average Groceries Household Size

$116 Computers & Hardware

$40,630

$4,316 Median Household Health Care Income

ANNUAL HOUSEHOLD SPENDING

Rice Lake also has the lowest median household income as compared to peer communities.

Geography: Place

2017 Female Population Age 55-59 (Esri)

42.9

Median Age

The smallest group:

2017 Male Population Age 80-84 (Esri)

2.2 Average Household Size

Ripon, WI

Eating Out

The largest group:

Population

$54,195

Dots show comparison to

0

Median Household Barron County Income

2

EDUCATION KEY FACTS SPENDING ANNUAL HOUSEHOLD

7,762 42.4 8% Population $2,345$1,815 Median Age

7,989 Population $1,457

8,385

A

No High Apparel & School Services Diploma

2.3

$4,319

40.2 $147 Computers & Hardware

39%

High School Average Graduate Household Size 20% Groceries 10 0 10

$2,829

Median Age

35%

Eating Out

$50,816 19%

Some College

Bachelor's/Grad/Prof Median Household Dots show comparison to $4,950 Degree Income 20%Care Langlade County Health

ANNUAL HOUSEHOLD SPENDING EDUCATION

families and singles who live in low density, settled neighborhoods.

• Favor convience of frozen meals and fast food; • Shop for groceries at discount stores such as Walmart; and • Participate to $134 in public activities $2,676 support &the local community.

Computers Eating Out

While these groupings emphasize 11% generalities, they are useful for iden$1,676 $1,271 $99 $2,061 Lifestyle Segmentation tifying common elements of the Apparel & Apparel & Computers & Eating Out 35% Services No High Hardware Lifestyle Segmentation is a holislargest consumer segments.

Of the Services Hardware School tic way of looking at a consumer’s peer communities, Antigo’s lifestyle The lifestyleSome classifications can College Diploma 38% 16% demographic and socioeconomic segmentation matches the $4,315 closest be further broken down into two $4,933 $3,471 $3,972 Bachelor's/Grad/Prof High School data to gain information on their lifeto the City of Rice Lake. Based on groups, as described here: Health Care Groceries Health Care Groceries Degree Graduate style and how they spend money. Of the identified lifestyle segmentation • LifeMode Groups have a the 67 lifestyle classifications, Rice in the City of Rice Lake, the followshared experience like being Lake is comprised primarily of three: ing can be generalized of a typical born in the same time period.

“Heartland Communities” (41%), consumer: • Urbanization Groups characcharacterized as semirural and terizes segments according to semiretired; “Small Town Simplicity” • Are active outdoors - partake in where they live, ranging from (21%), characterized as young hunting, fishing, walking and large cities to the most rural family and senior householders that camping; farm lands. are bound by community ties; and, • Prefer to bank, pay their bills in “Traditional Living” (16%), characperson and buy insurance from The predominant LifeMode in Rice terized as a mix of married-couple an agent; Lake is “Cozy Country Living” (41% of

Burton Site | Market Analysis & Conceptual Plan

Age Pyramid

ANNUAL LIFESTYLE SPENDING

ation

2017 Female Population Age 55-59 (Esri)

$36 The smallest group:

4$1,339

ation

$37 Figure 5:

$47

$1,767

Theatre/Operas/ Movies/Museums/ Travel 2017 Male Population ConcertsAge 80-84 (Esri) Parks

Travel

$3

Sports Events Primary Tapestry

Segments

Online Games

$52

$63

Theatre/Operas/ Concerts

Movies/Museums/ Parks

$51

$4

Sports Events

Online Games

Source: ESRI Business Analyst

Tapestry Segments

Tapestry Segments

Rice Lake, WI

Age Pyramid

6F

Plymouth, WI

Heartland 41.2% ANNUAL LIFESTYLE SPENDING Communities 1,661 households

$1,184 Travel

20%

10

$31 The smallest of Households group:

837 households

0

12B

10

5D

The largest group: of Households

2017 Female Population Age 20-24 (Esri) 12C Small Town Simplicity 20.8%

to tion

$39

$2

Heartland Communities

57.7%

32%

5D

of Households

Some College

29%

980 households

0

12B

18.1%

$44

Parks and Rec $45 662 households

6F

of Households

Movies/Museums/ Parks

17.9%

$3

of Households

Online Games

10

20%

Rustbelt Traditions

39.0%

1,215 households

of Households

Heartland Communities

32.3%

1,007 households

of Households

Fond du Lac County

Traditional Living

EDUCATION 520 households

14.6%

9E

of Households

9% the residents), which is made up of empty nesters who reside in single No High 29% family dwellings. They believe in the School Some College Diploma importance38% of buying American, prefer to shop at discount retailHigh School ers and own every tool and piece Graduate of equipment imaginable to maintain their homes, vehicles, vegetable gardens and lawns.

The other LifeMode group in Rice Lake is “Hometown” (37% of residents), which is characterized as single householders who grow up

and stay close to home. They tend to rent in small multi-unit buildings or own old, single-family homes. They visit 23% discount stores and purchase used vehicles to get them to and Bachelor's/Grad/Prof fromDegree nearby jobs.

Rice Lake’s Urbanization Group is “Semirural” (62%) and “Metro Cities” (38%). These two groups are living anywhere from smaller cities to rural places that are still within reach of some amenities.

Burton Site | Market Analysis & Conceptual Plan

Retirement Communities 449 households

$55

of Households

31%

Dots show comparison to 10

Retirement Communities

Sports Events

Bachelor's/Grad/Prof High School 12C Small Town Simplicity 27.6% Degree Graduate

20%

of Households

Tapestry Segments Ripon, WI

2,051 households

to

1,222 households

Theatre/Operas/ Concerts

5C

Online Games

Rustbelt 33.0% ANNUALTraditions LIFESTYLE SPENDING

672 households

of Households

Tapestry Segments

6F

$1,593

16.0%

Traditional Living

$32 EDUCATION 644 households

8%Antigo, WI No High School Diploma

9E

Dots show comparison to Theatre/Operas/ Movies/Museums/ 2017 Male Population Travel ConcertsSheboygan Parks 20% County Age 80-84 (Esri)

Sports Events

d/Prof

d/Prof

ANNUAL LIFESTYLE SPENDING

The largest group:

14.4% of Households

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RETAIL MARKET RETAIL MARKET BASICS

Retail development is driven by a few basic fundamentals that should be considered when planning for retail use. First, retailers look for established markets with sustained traffic. Second, retailers generally

focus on the statistical portrait of an area (i.e., “buying power”) before moving to the location, including population/household density, population/household growth and demographic make-up of potential customers (i.e., population tapestry).

Third, retail operators have been optimizing their market share by minimizing the number of stores; thus, maximizing profitability while reducing potential of “sales transfer” from one location to another.

Lastly, retailers prefer to cluster with

Figure 6: Rice Lake’s Trade Areas Analysis Source: ESRI Business Analyst Online

RICE LAKE DESTINATION TRADE AREA

Tw in

Cit ie

sM

etr oT rad

eA rea

Eau Claire Trade Area

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compatible merchants to increase their probability of drawing sufficient traffic vs. relying solely on their own drawing power.

RETAIL TRADE AREAS

A trade area is the geographic region that generates the majority of customers to a shopping area. A trade area can vary depending on the type of business; however, in general retail spending is broken into two trade areas - Convenience Trade Area and Destination Trade Area (see descriptions below).

These trade areas are residentbased, and therefore do not account for commuter/tourist purchases.

• A convenience trade area (CTA) is the area within which a trip to the site in question is short enough to be considered convenient. This is the most appropriate area in which to evaluate demand for things that people purchase every week, and for which the convenience of the store is an important features, such as gas and groceries.

• A destination trade area (DTA) is a larger geographic area from which customers may be willing to visit a business despite greater distance, due to comparison shopping, brand loyalty, and price point differences. The DTA also includes consumers in rural areas who, out of necessity, drive further to get their convenience-type shopping (as none are located closer).

Rice Lake Trade Areas

A trade area is typically generalized based on drive time or distance from a single point. However, there are other factors that can impact where

consumers shop, such as business/ retail mix, store types, and accessibility. Since community size can be directly linked to larger shopping districts having these other factors, those marketplaces cover a larger geographic area (i.e., having a greater pull factor). To this end, it was important to establish how the nearby competing marketplaces will affect Rice Lake’s trade areas.

As shown in Figure 6 (on the previous page), areas outside of Rice Lake’s 12-mile generalized DTA (white radii) have limited retail options (i.e., not within other community generalized trade areas).

The closest comparable/larger marketplace is the City of Eau Claire (60 minutes south) and the Twin Cities metro area (90 minutes southwest). These two markets will have a greater pull factor; thus, consumers to the south and far west of Rice Lake are more likely to travel to these larger retail marketplaces.

For example, the City of Bloomer is roughly 30 minutes from Rice Lake and 20 minutes from the edges of Eau Claire. Thus, it is likely that the majority of consumers leaving Bloomer for retail (and entertainment) will choose to drive to Eau Claire due to a shorter drive time and greater quantity of goods and services available. This suggests destination trade area (DTA) of a 45-minute drive shed, except south (towards Eau Claire) covers only a 30-minute drive shed. In total, Rice Lake’s DTA contains nearly 70,000 people.

In identifying the smaller convenience trade area, we considered the larger destination trade area, competing marketplaces, and general distances consumers are willing to drive for specific types of

Burton Site | Market Analysis & Conceptual Plan

goods and services (see side bar).

This suggests a 20-minute drive shed for convenience trade area (CTA). In total, Rice Lake’s DTA contains approximately 27,000 people.

BUSINESS TYPE GAP ANALYSIS

Retail gap is the difference between the demand (potential) sales and actual retail sales. The demand is the expected amount spent by consumers at retail establishments, and the total supply is the estimated sales to consumers by establishments.

Based on the retail gap summary shown in Table 1 (on the next page), Rice Lake’s marketplace is seeing a retail trade and food/drink demand of approximately $386 million in retail and food/drink sales, while the DTA has a demand for approximately $969 million. Based on the supply in these trade areas, there is a surplus of $175 million in the CTA and leakage (gap) of 113 million in the DTA. This suggests the Rice Lake marketplace is providing goods and services to consumers beyond the PREFERRED DISTANCES TO GOODS & SERVICES Less than 10-Minute Drive • Fast Food Restaurant • Tavern/Bar

Less than 20-Minute Drive • • • •

Groceries (convenience) Family (Sit-down) Restaurant Donut Shop / Bakery Coffee Shop / Deli

Less Than 30-Minute Drive • Groceries (destination – big box) •

Personal Care / Cosmetics

Less than 60-Minute Drive • Electronics • General Goods • Department Stores • Apparel

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convenience trade area (20-minute drive shed), including visitor, toursits and in more rural locations surrounding the City. Within the DTA, there are several industries that do have gaps in the demand. Those that provide the best opportunity are industries with the largest gap dollars to the overall demand dollars. Table 2 (below) shows industries that have significant demand gap.

In general, a community is not expected to retain all of its local demand, as people will always choose to make a certain number of purchases in other communities or online. Therefore, the number of stores is relative and should not suggest the exact number of businesses that will thrive in Rice Lake, rather it indicates the business types that are highly marketable.

TRADE AREA BUSINESS DEMAND

As discussed in the previous section, there are retail industries that show demand gap; however, not all are potential candidates for recruitment to the City of Rice Lake. One reason is certain businesses almost always see leakage of sales due to comparison shopping (e.g. car dealerships) or have brand/store loyalty (e.g. clothing stores). Another reason is the demand is not large enough to sustain a store. Table 3 (on the next page) shows industry groups retail gap in the Rice Lake DTA compared with (2012) Wisconsin average sales per establishment. Those with the greatest potential for the Burton property highlighted in orange bolded text (in the Table 3 on the next page).

Table 2: Percentage Gap to Demand , DTA

Also noteworthy, is the sales data classifies supercenters, such as Walmart, as General Merchandise Store (NAICS 452), meaning the sales don’t get separated out by products (grocery, sporting goods, etc.) and reclassified into other industries. This further reduces several categories potential demand gap.

This especially significant regarding grocery stores, where the grocer section at Walmart can account for half of their total sales.

Table 1: Rice Lake Retail Gap Summary Source: ESRI Business Analyst

Retail Market (Industry Summary)

DTA

CTA

(Max. 45 minutes)

(20 minutes)

Trade Area Population 27,394 Retail Trade (NAICS 44-45) Demand $353,694,588 Supply $518,507,358

$886,587,025 $777,702,786

-$164,812,770

$108,884,239

Retail Gap Surplus / Leakage Factor Number of Businesses Demand Supply

69,624

-18.9

6.5

243 Food & Drink (NAICS 722) $32,665,626 $518,507,358

472

$79,345,393 $75,526,996

-$9,823,008

$3,818,397

Surplus / Leakage Factor Number of Businesses

-13.1

2.5

Retail Gap Surplus / Leakage Factor Number of Businesses

-$174,635,778 -18.4

$112,702,637 6.2

Retail Gap

89 206 Retail Trade and Food & Drink (NAICS 44-45, 722) Demand $386,360,214 $965,932,418 Supply $560,995,992 $853,229,781 332

677

Source: ESRI Business Analyst NAICS: Industry Group Special Food Services Nonstore Retailers Other General Merchandise Stores Clothing Stores Clothing & Clothing Accessories Stores Direct Selling Establishments Jewelry, Luggage & Leather Goods Stores Book, Periodical & Music Stores Automobile Dealers

Demand

$2,139,302 $26,056,615 $37,032,401 $19,970,682 $30,020,846 $4,438,219 $5,561,549 $2,956,769 $165,033,097

Supply

$264,606 $3,291,100 $8,393,694 $5,821,533 $11,377,122 $2,201,578 $2,828,389 $1,513,752 $92,318,608

Retail Gap

$1,874,696 $22,765,515 $28,638,707 $14,149,149 $18,643,724 $2,236,641 $2,733,160 $1,443,017 $72,714,489

% Gap to Demand

88% 87% 77% 71% 62% 50% 49% 49% 44%

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Table 3: Rice Lake DTA – Retail Store Demand by Category, DTA Source: ESRI Business Analyst, 2012 Economic Census

NAICS Code

443

4411 4412 4413 4421 4422

Automobile dealers Other motor vehicle dealers Automotive parts, accessories, and tire stores Furniture stores Home furnishings stores Electronics and appliance stores

$13,322,725 $2,853,829 $1,293,787 $1,940,618 $1,076,304 $1,734,152

443141

Household appliance stores

$1,201,124

Electronics stores

$1,875,639

Building material and supplies dealers

$3,709,493

44411

Home centers

44412

Paint and wallpaper stores

$1,096,872

44413

Hardware stores

$1,625,753

4442 44422

4451

44511 44512

4452 4453

Supermarkets and other grocery (except convenience) stores Convenience stores

Pharmacies and drug stores Cosmetics, beauty supplies, and perfume stores

$976,061

44613

Optical goods stores

$650,168

44811

Men's clothing stores

44812

Women's clothing stores

$799,036

44813

Children's and infants' clothing stores

$1,062,901

44814

Family clothing stores

$2,234,228

44815

Clothing accessories stores

Jewelry stores

$975,560

Luggage and leather goods stores

$335,714

Sporting goods, hobby, and musical instrument stores

$1,388,246

Sporting goods stores

$1,622,487

45112

Hobby, toy, and game stores

$1,350,508

45113

Sewing, needlework, and piece goods stores

$776,955

45114

Musical instrument and supplies stores

4512 4521

Book stores and news dealers Department stores

452111

Department stores (except discount department stores)

$12,018,885

Discount department stores

$19,878,084

45391

7225

Other general merchandise stores Florists Office supplies, stationery, and gift stores Used merchandise stores Other miscellaneous store retailers Restaurants and other eating places

-6.9 11.8

$1,761,415 $2,733,160

1.6 2.8

-$2,487,895

-1.8

$1,443,017 -$20,832,572

1.2 -1.2

$28,638,707 $343,149 $1,970,844 -$5,750,463 $6,884,018

2.3 1.2 2.8 -8.4 6.9

$7,430,776

10.3

$907,723

$1,191,974 $17,775,404

452112

4529 4531 4532 4533 4539

-$35,478,643 $14,149,149

$698,491

$1,109,458 $963,616

44831

45111

4.2 -4.5 5.6

$788,851

44832

4511

$3,234,223 -$4,666,620 $19,439,390

$967,678

$5,157,751 $1,196,446

Shoe stores Jewelry, luggage, and leather goods stores

1.5

$6,253,953

Other health and personal care stores

Gasoline stations Clothing stores

-1.0

$12,904,702 $592,660

$770,688 $1,048,612 $3,479,633

44612

4482 4483

-4.0

$9,407,260

44611

4481

-$14,861,608

$4,022,295

$8,333,052

44619

5.5 3.4 -1.9 -0.3 -4.7 3.3

$1,060,819

Nursery, garden center, and farm supply stores

Specialty food stores Beer, wine, and liquor stores Health and personal care stores

# of Businesses

$72,714,489 $9,612,108 -$2,455,049 -$553,824 -$5,035,890 $5,668,125

$3,294,063 -$3,255,206

Outdoor power equipment stores

Grocery stores

Gap

$20,767,624

Lawn and garden equipment and supplies stores

44421

447

(2012 Wisconsin)

443142

4441

446

Avg. Sales / Store

Industry Group

$12,638,925 $293,059 $711,182 $684,748 $993,374 Pet and pet supplies stores

$1,487,199

$718,390

722511

Full-service restaurants

$677,942

722513

Limited-service restaurants

$818,476

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TOURISM-DRIVEN MARKET

A large portion of the local economy is based on the tourism industry. The region attracts a significant number of visitors, primarily during summer months due to seasonal homes and abundant natural and recreationbased amenities. This brings people into the area who are typically not counted in the US Census or ACS as living in Rice Lake, thus the retail gap analysis does not capture their demand.

Based on Wisconsin Department of Tourism data, Barron County tourism brought in roughly $96.6 million in direct spending in 2016.

Barron County ranked 28th out of all 72 Wisconsin counties for direct visitor spending in 2016. The only surrounding County that had greater direct visitor spending was St. Croix County ($106.2 million), which ranked 26th. These figures would be even greater if indirect

and induced spending were added.

Indirect spending covers spending on supplies/inputs for lodging, restaurants, and bars (e.g. food wholesalers, farmers, utilities, marketing, and publishing). Induced spending covers spending by employees due to wages from either the direct or indirect spending. Based on data from the Department of Tourism, tourism employs 1,433 people in the County.

of spending growth occurred in the lodging and food and beverage categories. Although the retail gap analysis does not show demand for these types of businesses, tourists are spending money at these places which makes them potential opportunities for Rice Lake.

While currently available data does not capture retail demand generated by second home-owners and tourists, we can attempt to conjecture what this population is spending their money on. According to a study commissioned by the Department of Tourism in 2016, 27% of Wisconsin visitors’ spending is on lodging, 26% on food and beverages, 20% on retail, 13% on recreation, 10% on other/transport and 4% on air travel.

Between 2015 and 2016 the majority

• CEC Cinema 7 Theater • Fireline Shooting & Training Center • Hunt Hill Audubon Sanctuary • Museum of Woodcarving • Pioneer Village Museum • Rand’s Bowling Lanes • Lounge, Red Barn Theatre • Northern Star Theatre Company • Rice Lake Curling Club • Rice Lake Speedway • Mommsen’s Produce Patch • Skate City • Spooner-Springbrook Train Ride • St. Croix Casino (in Turtle Lake) • Tactical Escape 101 • Tommy G. Thompson’s State Fish Hatchery • Triple HHH Equestrian Center • Valkyrie Brewery • Washburn County Railroad Museum

Figure 7: Wisconsin Visitor Spending by Sector, 2016 Source: Longwoods International, NTTO, Stats Can, Tourism Economics

Visitor Spending by Sector

Retail 20.4%

Food & bev.

25.8%

Recreation 13.3%

Air 3.6% Other Transport 9.9% Lodging 27.1% Sources: Longwoods International, NTTO, Stats Can, Tourism Economics

Existing attractions and entertainment that directly bring tourists in the City’s trade area include:

Also the City hosts several local events, which bring residents and visitors together.

If the City offered more tourist-oriented businesses and held more events that brings in visitors, there is potential for additional demand not represented in the retail gap analysis.

It will be important to consider businesses/attractions that are unique to the region, or are under-represented.

The Spooner-Springbrook Train Ride

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is one such business that is unique to the region. Community marketing around these type of businesses will only help to attract more visitors and their spending to the City.

BURTON PROPERTY OPPORTUNITIES Existing Demand

• Restaurant: There is a potential market for full- and limited-service restaurants; however, there is competion along Main Street and South Access Road. The most viable locations will be on Kern Avenue extension with a business that does not have direct competition within a few miles of the location. This is assuming that the Kern Avenue extension will meet or exceed the projected traffic volumes once built (i.e., redirecting roughly 20-25% of traffic from Main Street to Kern Avenue).

• C l o t h i n g ( a n d C l o t h i n g Accessories) Store: There is a potential market for a clothing business in the City. However, brand and comparative shopping opportunities generally dictate where clothing stores locate.

Based on local knowledge, the majority of non-grocery shopping is being done in the Eau Claire area. Plus, there are several big box stores in Rice Lake that sell clothing, but their sales show up under General Merchandise in Table 3 (and has a roughly $21 Million surplus). Lastly, more and more purchases of clothing is being done online (vs. in a “brick and mortar” store). Therefore, this opportunity may prove to be unsustainable, unless the business

can pull customers from beyond the Rice Lake trade area. This generally requires a chain retailer with brand recogniztion and marketing dollars, especially if unavailable in 90 minutes of Rice Lake.

• Specialty Grocery Store: This store type provides packaged retail goods that are not made on site, including coffee and teas, bake goods, confection goods (candy/nut/popcorn), spice and gourment food.

• Health and Personal Care Store: This category includes pharmacies, drug stores, cosmetic/beauty supplies, optical products, etc.

There are currently five pharmacy/ drug store locations in the City. For comparison, Plymouth and Ripon have four locations and Ripon has three locations.

Potential Demand

• Tourist- and Visitor-Related Businesses: Based on tourist impact data, there are potential demand for additional food and beverages, recreation and lodging establishments; however, the analysis does not factor the impact of existing establishments outside the trade area.

• Other Misc. Retailers (e.g., Pet Supply Store, Art Dealers, Mobile Home Dealers, etc.): A pet supply store is one such business in the “other misc. retailers” category.

Currently there is a three locations in Rice Lake that sell pet supplies, including Pets For You, Pe Supplies Plus and Blains’ Farm & Fleet. The ideal target would be a chain retailer located on Kern Avenue.

Burton Site | Market Analysis & Conceptual Plan

Other Market Considerations

• Hair/nail salons and barbershops: These businesses thrive in numbers in any market, as proximity, local preference and customer service are most important to a sustainable business.

More importantly, individual businesses generally have a limit to the number of clientele it can serve based on the typical 1-5 employees per business. Based on a google search, Rice Lake does have a similar number of establishments found in the peer communities at this time.

Peer Cities: Hair/Nail Salon, Plus Barbershops • Rice Lake: 17 • Antigo: 14 • Plymouth: 12 • Ripon: 8

ment* stment* 7 67

3 43

0

7 37 2 52 4 804

3 503

11

OFFICE MARKET NATIONAL TRENDS

Based on Reis, Inc., the national office market is slowly rebounding from the Great Recession. As shown in Figure 8,the average vacancy rate has declined from an high around 18% and has been steadily declining below 16%. Net absorption has exceeded new completions over the last three years, which means existing (or renovated to) office spaces are starting to fill.

Figure 8: Office Metrics, United States Source: National Association of Realtors / Reis, Inc.

2017 Commercial Real Estate Market Report 2017 Commercial Real Estate Market Report Another tread is the shifts in indusEau Claire Area

tries moving towards more efficient Eau Claire Area Figure 9: Office Vacancy Rate vs. Absorption, Eau Claire Area office floor plans. Ten years ago, the Source: 2017 Commercial Real Estate Market Report (Commonweal) average space occupied per worker VACANT SF VS. ABSORPTION was approximately 250Rate square- feet.

2016 9.77% SQUARE FEET IN SF THOUSANDS VACANT VS. ABSORPTION Today, the average space per worker 2016 Rate 7.55% 2016 Rate - 9.77% SQUARE FEET IN THOUSANDS 500,000 has decreased and ranges from 2016 Rate - 7.55% 150,000 Total SF Vacant % Vacant approximately 135 to 240 square 150,000 500,000 400,000 Total SF are aVacant % Vacant 100,000 feet.

There range of expla100,000 400,000 811,595 108,578 13.38% 50,000 300,000 nations for this trend including: 811,595uncertainty; 108,578 13.38% 50,000 300,000 economic advances 200,000 2012 2013 2014 2015 2016 2017 in technology that have reduced 200,000 (50,000) 100,000 992,049 tenants need for49,335 on-site storage4.97% and 2012 2013 2014 2015 2016 2017 (50,000) 992,049 49,335 4.97% server rooms; increased opportuni(100,000) - 100,000 93,248 17,165 18.41% ties for employees to work remotely; (100,000) Absorption Vacant SF and the growing 17,165 practice of office 93,248 18.41% Absorption Vacant SF SQUARE FEET VS. VACANCY RATE space hoteling in which employees FigureTOTAL 10: Office Total Square Feet vs. Vacancy Rate, Eau Claire Area SQUARE FEET IN MILLIONS & VACANCY (%) 610,273 28,473 4.67% use workspaces on an as-needed Source: 2017 Commercial Real Estate Market Report (Commonweal) TOTAL SQUARE FEET VS. VACANCY RATE SQUARE FEET IN MILLIONS & VACANCY (%) basis.

610,273 28,473 4.67% 3.60 14.0%

214,744 7,373 3.43% 214,744 7,373 3.43% REGIONAL & LOCAL TRENDS 871,511 107,870 12.38% 871,511 107,870 12.38% Office Demand

As shown in the regional context 3,593,420 318,794 8.87% section (see page 1), the City of 3,593,420 318,794 Rice 8.87%

is just north t is new, removedLake or reclassified

of the Eau Claire Micropolitan that is new, removed or reclassifiedmarketplace. To get an understanding of the local office marketplace, the 2017 Commercial

3.553.60

14.0% 12.0%

3.503.55

12.0% 10.0%

3.453.50

10.0% 8.0%

3.403.45

8.0% 6.0%

3.353.40 3.303.35

6.0% 4.0% 4.0% 2.0%

3.253.30 3.203.25 3.20

2012

2013

2012

2014

2013 Total SF2014 Total SF

VACANCY

2015

2016

2017

2015 2016 Vacancy Rate

2.0% 0.0%

2017

0.0%

Vacancy Rate

ABSORPTION

TOTAL SF

B u rVACANCY t o n S i t e | MABSORPTION a r k e t A n a l y s i sTOTAL & C SF onceptual Plan

12

2017 Commercial Real Esta Real Estate Market Report for the Eau Claire area (by Commonweal Development Corporation) was reviewed. While there are differences in this micropolitan marketplace (as compared to Rice Lake), one of Eau Claire’s sub trade areas (i.e., North Side / Lake Hallie) has similarities to the City of Rice Lake marketplace (and the area around the Burton properties). The Eau Claire marketplace has nearly 3.6 million square feet of office space, as of 2017, but there is only 93,250 square feet in the “North Side / Lake Hallie” trade area (2.6% of the Eau Claire office marketplace).

As shown in Figures 9 and 10 (on the previous page), office development has increased by nearly 250,000 square feet between 2015 and 2017. During this same period, the vacancy rate has decreased (~9% from ~13%), indicating there has been increased demand within the past several years. Of the roughly 50,000 square feet absorption in 2017, 43% has occurred in the downtown trade area. While the other trade areas saw between 6,000-9,000 square feet absorption, the North Side / Lake Hallie trade area saw no change (see Figure 11).

The six Eau Claire trade areas range in vacancy from 3.4% to 18.4% vacancy with the North Side / Lake Hallie trade area having the highest vacancy rate.

This conflicting information suggests that even though there is noticeable improvements in the regional office marketplace, some office trade areas, such as the “North Side / Lake Hallie”, are not rebounding as well as the remainder of the

Figure 11: Office Analysis by Trade Area, Eau Claire Area Source: 2017 Commercial Real Estate Market Report (Commonweal)

•

0 SF 18.4% Vac.

•

•

•

•

•

+8,943 SF 5.0% Vac. +22,804 SF 12.4% Vac. +6,167 SF 13.4% Vac.

+7,152 SF 3.4% Vac. +8,437 SF 4.7% Vac.

Sector lines are approximate | Map - Googlemaps.com

micropolitan area. If Rice Lake’s office marketplace resembles Lake www.commonwealdc.com Hallie’s trade area, then its neither improving or worsening.

Target Office Tenants

Wisconsin’s Depar tment of Workforce Development (DWD) projects occupation growth in the State of Wisconsin and by (regional) workforce development areas (WDA). Barron County is one of nine counties in the West Central WDA. Even though there are many communities within the West Central WDA, the shear number of projected jobs for some occupations suggest there is a market across

Burton Site | Market Analysis & Conceptual Plan

the nine-county WDA. Table 4 (on the next page) provides a list of those growth occupations that may provide target office tenants. The highlighted occupations project more than 100 jobs over the next six years with several projected to have more than 400 jobs (and are bolded). The occupation with the greatest number of projected jobs in the next six years is ambulatory health care services (1,410 job projected).

Another consideration should be given to office-related services that associate with number of providers per residents. For instance,

13

a local chiropractic, dentist and doctor office can support up to 1,500 patients (depending on insurance and coverage). The City has a population of approximately 8,400 and roughly 55,500 residents in the City’s destination trade area. Table 5 (below) summaries the number of businesses in Rice Lake and in each of the peer communities. Based on this comparison, it appears Rice Lake has a similar number of establishments as found in the peer communities.

BURTON PROPERTY OPPORTUNITIES

Office tenants look for locations with adequate workforce and access to a regional customer base. Rice Lake’s location toward the edge of the two micropolitan areas limits the City’s ability to achieve a competitive advantage from a workforce perspective – the surrounding labor shed is significantly less dense than locations in closer proximity to Eau Claire and Menomonie.

Despite signs of recovery, construction activity remains extremely limited. Newly constructed facilities have been focused on medical users but have included both single- and multi-tenant structures. The typical size of new office buildings generally range from 7,500 square feet to 60,000 square feet in a community the size of Rice Lake, with larger facilities in the industrial/business parks. Although larger facilities are still being built, the average per employee square footage continues to shrink.

Table 4: Occupation Growth Sectors, West Central WDA West Central WDA Source: Wisconsin Department of Workforce Development

Industry Employment 2014-2024 Long-Term Projections

Barron, Chippewa, Clark, Dunn, Eau Claire, Pepin, Pierce, Polk, and St. Croix Counties

NAICS 6214 6213 6216 5416 621 6241 5415 624 6232 5242 623 6211 6231 523 5419 541 6212 6244 5412 55 5311 524 5413 5411 531 622 5241 522 5221 5231

Industry Title Outpatient Care Centers Offices of Other Health Practitioners Home Health Care Services Management & Technical Consulting Svc Ambulatory Health Care Services Individual & Family Services Computer Systems Design & Rel Services Social Assistance Residential Mental Health Facilities Insurance Agencies, Brokerages & Nursing & Residential Care Facilities Offices of Physicians Nursing Care Facilities Financial Investment & Related Activity Other Professional & Technical Services Professional & Technical Services Offices of Dentists Child Day Care Services Accounting & Bookkeeping Services Management of Companies & Enterprises Lessors of Real Estate Insurance Carriers & Related Activities Architectural & Engineering Services Legal Services Real Estate Hospitals Insurance Carriers Credit Intermediation & Related Activity Depository Credit Intermediation Security & Commodity Investment

Employment* Change 2024 Level Percent 1,050 1,600 550 52.4% 940 1,350 410 43.6% 560 750 190 33.9% 220 280 60 27.3% 5,270 6,680 1,410 26.8% 1,750 2,190 440 25.1% 90 110 20 22.2% 2,440 2,890 450 18.4% 1,360 1,600 240 17.6% 450 510 60 13.3% 4,250 4,810 560 13.2% 1,910 2,130 220 11.5% 1,720 1,910 190 11.0% 190 210 20 10.5% 200 220 20 10.0% 1,450 1,590 140 9.7% 430 470 40 9.3% 380 410 30 7.9% 310 330 20 6.5% 970 1,020 50 5.2% 220 230 10 4.5% 1,200 1,250 50 4.2% 260 270 10 3.8% 300 310 10 3.3% 420 430 10 2.4% 3,770 3,840 70 1.9% 750 740 -10 -1.3% 1,140 1,080 -60 -5.3% 1,070 1,010 -60 -5.6% 100 90 -10 -10.0% 2 0 1 4

Table 5: Population-Driven Business Summary Table, Peer Communities Source: Wisconsin Department of Workforce Development Rice Lake Health Clinics Chiropractor Dentists Vision Office Pharmacies Hair/Nail Salons & Barbershops

8,597

8 9 6 6 5 17

Antigo 7,989

Plymouth 8 9 4 3 3 14

8,385

8 5 6 6 4 12

Ripon 7,762

5 3 3 3 4 8

Burton Site | Market Analysis & Conceptual Plan

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The following are opportunities for office users: •

Flex space: is a commonly used term which refers to buildings which have a large office space component but which also provide dedicated loading, warehousing or light assembly space. Companies requiring flex space are commonly found in the research, testing and product development sectors. New construction activity is slightly better for flex type buildings, which are often built for a specific user.

•

Medical-Related: The presence of an older population coupled with access to Lakeview Medical Center creates opportunities for spinoff office demand. Medical industry trends point towards increased utilization of off-site office space to increase hospital efficiencies. Additionally, some hospitals opt not to perform certain procedures due to cost or philosophical reasons.

Both of these scenarios create demand for proximate medical facilities to existing hospitals.

•

College/University-Related: The City of Rice Lake is home to UW-Barron County and Wisconsin Indianhead Technical College. Universities are also common drivers of demand for office space, either as flexible satellite space for growing professional development activities, for companies which target student workers, or research or policy affiliates which benefit from adjacency to a university.

•

Commerial Condo: Rising real estate and construction costs have many entrepreneurs considering a commercial condominium as an alternative to a stand-alone building for their business. Sharing a building with other companies offers numerous advantages beyond a lower purchase price. Condo owners benefit from sharing the cost of such items as maintenance, insurance, property taxes and heating. And the building is often run by a management company, saving entrepreneurs the headaches of operating a building as well as their own business.

Burton Site | Market Analysis & Conceptual Plan

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HOUSING MARKET DEMOGRAPHICS

Population

Based on the 2010 US Census, Rice Lake’s population was 8,419 and is estimated at 8,597 as of 2017 (2% increase). The City of Rice Lake is the largest municipality in the County with 18% of the County’s population. The next largest community is the City of Barron with 7% (of the County). The Wisconsin Department of Administration (DOA) projects Rice Lake’s population to grow by 4% by 2040.

Peer Cities: 2010-2040 Projection • Rice Lake: 4% increase • Antigo: 10% decrease • Plymouth: 16% increase • Ripon: 0%

Age Breakdown

Based on the 2012-2016 American Community Survey (ACS) data, the City of Rice Lake’s median age is 39.4. This is lower than the County‘s median age (at 43.9), as well as compared to the peer cities (i.e., 42.7 in Antigo, 42.0 in Plymouth and 39.8 in Ripon). Yet, as shown in Figure 13, Rice Lake has the highest percentage of seniors (i.e. 65 and older) than the County and all peer cities.

Peer Cities: 2012-2016 Percent of Seniors (65 & Older) • Rice Lake: 22% • Antigo: 20% • Plymouth: 20% • Ripon: 18%

Figure 12: Population Change by Decade Source: US Census, 2012-2016 ACS

15% 10% 5% 0%

1990-2000

2000-2010

2010-2020

2020-2030

2030-2040

-5% -10% Rice Lake

Antigo

Plymouth

Ripon

Barron County

Figure 13: Age Breakdown* Source: US Census, 2012-2016 ACS

65 & Older

45-64

25-44

Below 25 0.0%

5.0% Rice Lake

10.0% Antigo

15.0% Plymouth

20.0% Ripon

25.0%

30.0%

35.0%

Barron County

* Margin of error exceeds 10% for all estimates with the exception of median age, Barron County

Burton Site | Market Analysis & Conceptual Plan

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HOUSEHOLDS

The percent of 2010 family households with seniors in Rice Lake (31%) is slightly higher than the percentage found in the County (30%) and significantly higher than the State as whole (24%). As noted in Table 6 (below), the City of Rice Lake, Barron County and the State have seen a significant increase in the percentage of households (HH) with seniors. This is a on-going national trend with the “baby boomers” reaching retirement age.

Seniors households have different housing preferences than those without seniors. Generally seniors desire smaller dwelling units, units that are (or can be retrofitted to be) handicap-accessible, units with less maintenance requirements, and units near amenities (such as medical facilities, walking paths, grocery stores, etc.). Also many seniors may ultimately require assisted living and/ or memory care facilities.

Peer Cities: 2012-2016 Percent of Households with at least one Senior • Rice Lake: 43% • Antigo: 39% • Plymouth: 37% • Ripon: 40%

The demand for smaller housing options is also relevant for the increasing number of people living alone, especially in Rice Lake where 42% of households are single occupants. This is significantly higher than the County and State with roughly 29% of households over the last two decades. Thus, the need/desire for smaller units will continue, if not increase, in the coming decades.

Peer Cities: 2012-2016 Percent of Households Living Alone • Rice Lake: 41% • Antigo: 42% • Plymouth: 36% • Ripon: 39% The increasing number of those living alone is reinforced by the descending average household size. This is especially evident in the City of Rice Lake which had an average household size in 2010 of 2.09 - a 34% reduction from 1970 (at 3.17).

AGE OF HOUSING STOCK

Age of housing stock is another important factor to consider when evaluating the housing market. Older housing can be an issue in a housing market as it is generally less desirable and can have high maintenance costs associated with it.

According to 2012-2016 ACS data, 65% of Rice Lake’s housing stock was built before 1970 and 23% was built before 1940. This suggests that much of the City’s housing stock requires additional upkeep to prevent homes from falling into disrepair, and/or needs to be replaced or abandoned for new development.

Peer Cities: 2012-2016 Percent of Housing Stock 70+ years old • Rice Lake: 25% • Antigo: 37% • Plymouth: 29% • Ripon: 28%

HOME AFFORDABILITY

Another important element to consider is affordability of the housing stock. according to the 2012-2016 ACS data, the current median home value in Rice Lake is approximately $112,500. This is lower than the Town

Table 6: Household Data, Regional Comparison Source: US Census, 2012-2016 ACS

Total HH Family HH HH W/Seniors* Non-Family HH Living Alone Average HH Size Average Family Size

Rice Lake 2010 2012-16 3,936 3,876

Barron County 2010 2012-16 19,173 19,017

Wisconsin 2010 2012-16 2,279,768 2,310,246

2,065 31.4% 1,871 41.2%

1,943 42.8% 1,933 41.7%

12,626 29.6% 6,547 27.7%

12,457 43.2% 6,560 28.6%

1,468,917 24.0% 810,851 28.2%

1,471,314 36.3% 838,932 29.1%

2.09 2.79

2.10 2.84

2.36 2.85

2.36 2.86

2.43 2.99

2.43 3.00

Burton Site | Market Analysis & Conceptual Plan

17

of Rice Lake ($172,100) and Barron County ($140,900).

In general, affordable housing costs requires no more than 30% of a household’s income. Based on 2012-2016 ACS data, Rice Lake has twenty-two percent (22%) of households exceeding this limit, which is lower than the County (24%) and the State (23%).

Peer Cities: 2012-2016 Percent of Households Exceeding Affordability • Rice Lake: 22% • Antigo: 20% • Plymouth: 18% • Ripon: 21%

HOME SALES & VACANCY

The housing market within Barron County, and in the City of Rice Lake, was affected by the Great Recession in a manner similar across Wisconsin and the Nation. County home sales

(the number of homes sold) hit a prerecession high of 746 homes in 2007, but drastically declined by 24% to 567 homes sold in 2008. Since 2012, Barron County has hit or exceeded pre-recession level, except in 2013 (730 homes). Based on Trulia, there are 43 single-family homes in Rice Lake that are currently listed as “For Sale” - none of which are new construction. According to the 20122016 ACS, the vacancy rate in Rice Lake was 1.2%, which is right around the desirable vacancy rate (2%).

Table 7: Home Values, Regional Comparison Source: US Census, 2012-2016 ACS

2000 472 1,282 276 101 29 21 9

Less than $50,000 $50,000 to $99,999 $100,000 to $149,999 $150,000 to $199,999 $200,000 to $299,999 $300,000 to $499,999 $500,000 or More Median Home Value

Rice Lake 2012-16 113 754 524 368 149 105 10

% Change -76% -41% 90% 264% 414% 400% 11%

$ 69,900 $ 112,500

2000 2,817 6,188 2,641 994 614 205 84

Barron County 2012-16 % Change 1,342 -52% 2,988 -52% 3,097 17% 2,590 161% 2,306 276% 1,265 517% 318 279%

61% $ 80,000 $ 140,900

Wisconsin 2012-16 86,375 223,636 336,079 319,874 343,677 178,229 59,763

% Change -39.2% -53.7% -18.2% 51.7% 178.0% 321.1% 312.8%

76% $ 109,900 $ 167,000

52%

2000 142,047 482,614 410,673 210,917 123,606 42,326 14,477

Table 8: Home Values, Marketplace Comparison Source: US Census, 2012-2016 ACS 2000 472 1,282 276 101 29 21 9

Less than $50,000 $50,000 to $99,999 $100,000 to $149,999 $150,000 to $199,999 $200,000 to $299,999 $300,000 to $499,999 $500,000 or More Median Home Value

Rice Lake 2012-16 113 754 524 368 149 105 10

$ 69,900 $ 112,500

% Change -76% -41% 90% 264% 414% 400% 11%

2000 974 1218 163 65 0 0 0

61% $ 56,500 $

Antigo 2012-16 % Change 188 -81% 1494 23% 435 167% 138 112% 51 #DIV/0!

15 #DIV/0!

0 #DIV/0!

77,400

2000 121 791 893 173 98 15 0

Plymouth 2012-16 % Change 195 61% 298 -62% 853 -4% 533 208% 276 182% 117 680% 0 #DIV/0!

37% $ 106,600 $ 139,100

2000 106 1116 509 129 12 7 4

Ripon 2012-16 % Change 132 25% 649 -42% 764 50% 256 98% 212 1667% 20 186% 0 -100%

30% $ 90,000 $ 115,100

28%

Table 9: Unit Occupancy Source: 2012-2016 ACS

Owner Occupied Renter Occupied Vacant Homeowner Vacancy Rate Rental Vacancy Rate

Rice Lake Antigo Plymouth Ripon Barron County Wisconsin Number Percent Number Percent Number Percent Number Percent Number Percent Number Percent 2023 47% 2321 56% 2272 55% 2033 59% 13906 59% 1547633 58% 1853 43% 1435 35% 1641 40% 1219 35% 5111 22% 762613 29% 468 11% 359 9% 232 6% 190 6% 4700 20% 339351 13% 1.2% 10.6%

0.9% 0.0%

0.0% 3.8%

2.0% 2.2%

1.6% 10.0%

1.7% 4.9%

Burton Site | Market Analysis & Conceptual Plan

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Peer Cities: Single-Family Homes Currently on the Market (based on Trulia.com) • Rice Lake: 43 • Antigo: 80 • Plymouth: 56 • Ripon: 62 Similar to other parts of Wisconsin, the median sale price in the County returned to its pre-recession level in 2016 and has continued to rise. In the first two months of 2018, average homes sales has remained in the $130,000 range.

RENTAL MARKET

Based on the 2012-2016 ACS, roughly 43% of housing in the City is rental occupied. This is higher than the comparable communities, the County, and State as a whole. The rental vacancy in Rice Lake in 2016 was 10.6%, up from 5.2% according to the 2010 Census. This is higher than the comparable communities, the County, and State as whole.

Generally, a healthy vacancy rate is 5-6% of total units – this is an appropriate balance between the interests of property owners and the interests of renters. A high vacancy rate suggests that some rentals may not be renting well.

Peer Cities: Rental Vacancy • Rice Lake: 10.6% • Antigo: 0.0% • Plymouth: 3.8% • Ripon: 2.2% Based on 2012-2016 ACS data, the median rent in Rice Lake is $617, which is lower than the County as a whole ($665) and is comparable to most of the peer communities (see Table 10).

Even

Homes Sold, Barron County Figure 14: Number#ofofHomes Sold, Barron County Source: 950 Wisconsin Realtors Association

900 850 800 750 700 650 600 550 500 450 400

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2016

2017

Figure 15: Median Home Price, County vs. State

Home Sale Price Source: Wisconsin Realtors Association $180,000 $170,000 $160,000 $150,000 $140,000 $130,000 $120,000 $110,000 $100,000

2007

2008

2009

2010

Barron County

2011

2012

2013

2014

2015

Wisconsin

Table 10: Gross Rent as a Percentage of Household Income Source: 2012-2016 ACS

Median Rent Less than 20% 20-24% 25-29% 30-34% 35% or more Not Computed

Barron County Rice Lake Antigo Plymouth Ripon Wisconsin $ 617 $ 613 $ 650 $ 665 $ 665 $ 789 23% 16% 11% 9% 38% 4%

Burton Site | Market Analysis & Conceptual Plan

22% 9% 10% 11% 42% 6%

32% 14% 15% 9% 25% 4%

27% 13% 8% 14% 34% 5%

28% 14% 12% 8% 31% 8%

27% 13% 11% 8% 36% 6%

19

though there is considerable error in ACS data (at the sample size found in smaller communities), the rent differential reported in the 2000 Census suggests a similar dependency between Rice Lake and the peer communities. This is illustrated in Table 11.

Skateboard Park, Dog Park, US 53 interchange, and a variety of shops and restaurants. Some of these benefits will also attract other uses (office and retail), but the majority will only benefit residential development.

Rice Lake and Antigo have similar median rents and percentages of renters paying more than 30% of their household income as rent (affordability threshold), 23% and 22% respectively. Plymouth (32%), Ripon (27%) and Barron County (42%) have a higher percentage of renters paying 30% or more of their income as rent.

Source: 2000 US Census, 2012-2016 ACS

All of the listed benefits will attract families, which suggest primarily single-family / duplex homes, but also suggest opportunities for small multi-family buildings (4 or less units) and medium multi-family buildings (5-19 units).

Table 11: Municipal Median Rents

Median Rent 2012-2016 ACS 2000 Census 2000-2016 Difference

Rice Lake $617 $409 51%

Antigo $613 $398 54%

Plymouth $650 $489 33%

Ripon $665 $429 55%

Table 12: Assisted and Independent Living Facilities in Rice Lake Source: seniorguidance.org

SENIOR HOUSING MARKET

The market for senior housing depends largely on population growth, age and income. While senior housing facilities generally locate in larger communities, the primary criteria is to be within 15 miles of a hospital. Since there is a hospital in Rice Lake, it could potentially support senior housing.

Table 12 lists the number of assisted and independent living facilities within the region and their distance from the Burton site. Currently there area 307 units in the City; however, of these only 28 are independent living units.

BURTON PROPERTY OPPORTUNITIES

The Burton property has many benefits that make the area attractive for residential development, including its proximity to Tainter Elementary School, Moon Lake Park (including Spalsh Pad), Moon Lake Trail,

Name Brentwood Senior Living Brentwood Senior Living Memory Care Care Partners Rice Lake Care Partners Rice Lake II CCC Homes - Nelson Home CCC Homes - Barker House CCC Homes - Kern House CCC Homes - Wisconsin House Chrismark Home Country Terrace of Wisconsin Daybreak I Integricare Rice Lake JB Signature Homes Magna House of Barron County Mitchells Family Home New Beginnings of Barron County Northwood Gables Rice Lake Assisted Care Rice Lake Memory Care We Care Assisted Living Woodstone Senior Living CBRF Woodstone Senior Living RCAC Total

Distance to Type Capacity Property (miles) Independent 28 2.6 Assisted 20 2.6 Assisted 15 0.4 Assisted 20 0.4 Assisted 4 1.1 Assisted 4 0.9 Assisted 4 1 Assisted 3 2.4 Assisted 8 2.5 Assisted 16 0.4 Assisted 15 2.3 Assisted 8 0.7 Assisted 4 2.8 Assisted 8 1.1 Assisted 4 2.8 Assisted 8 2.4 Assisted 8 9 Assisted 20 0.1 Assisted 24 0.1 Assisted 4 12.7 Assisted 39 4 Assisted 43 4 307

Burton Site | Market Analysis & Conceptual Plan

20

Some of the benefits will attract the senior population, including proximity to Moon Lake Park, Moon Lake Trail, Dog Park (independent living), and a variety of shops and restaurants.

•

Current Residential Conditions

As noted in the Locational Benefit section, each of these housing types can draw interest (marketability) based on the public amenities and commercial found nearby.

Rice Lake remains connected to and affected by the national housing trends, including changes in financial regulation, demographics, development practices and cultural norms.

The most relevant changes affecting housing demand in the Rice Lake are:

Affordable “small” homes in single family and duplex formats either as in fee simple (own house and land) or condominium ownership (own house and jointly own land).

• Population size projected to increase by only 4% through 2040 • Housing stock is aging, 23% built before 1940 • Total number seniors and number of households with seniors is increasing (43% in 2016), including 279 assisted living units within the City and only 28 independent living units.

• Planning and development practices mixing uses and residential types into walkable neighborhoods.

Potential Markets

Based on the current conditions and market needs, the City of Rice Lake could benefit from additional housing in the following formats: •

Senior housing facilities (especially, independent living units) in multi-family building or as duplex and fourplex formats;

•

Single-Family homes targeted towards families (3- and 4-bed and 2+ bathroom homes); and,

Burton Site | Market Analysis & Conceptual Plan