3(b) Housing and Economic Development Sections

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Attracting consumers from the region comes with paying attention to those unique experiences and offerings that Pequot Lakes has, or can grow. With many options in the regional marketplace, Pequot Lakes needs to be a "destination" in order to stand out.This means having an agglomeration of businesses that,while competitive, rely on each other and their collective draw for attracting consumers. The destination effect is enhanced by paying attention to how businesses are spatially located, how their design interacts with their neighbors and how they improve the public realm. Distant markets — those beyond the immediate region — are within reach of Pequot Lakes due to quality transportation systems, excellent broadband connectivity and adequate telecommunications systems. Continued improvements to all of these systems will enhance the community's competitiveness and allow local businesses access to unlimited markets. FINANCIAL INCENTIVES t��q��estet� �nf�7 fr�_��7�� RtAF[�� Financial incentives are an important economic development tool for the City to use.The City has the ability to utilize a number of incentives:Tax Increment Financing(TIF), tax abatement, revolving loan programs, direct grants,JOBZ designation and more.The City needs to be deliberative in which types of projects it provides financial incentives to. As a guideline,financial incentives would best be used to support import-replacement enterprises that: 1. Are located in areas with existing infrastructure or for projects that do not require the extension of municipal utilities. 2. Redevelop blighted or underutilized properties. 3. Have a high potential to induce economic activity within the community beyond the operation of the enterprise receiving the subsidy. 4. Are scaled to utilize local services, such as a local attorney, insurance agent, printer, accountant, etc... Business chains that would routinely handle professional services outside of the community in a corporate framework are not good candidates for tax subsidies. Businesses that meet these guidelines should be given strong consideration if a short-term tax subsidy is needed to facilitate their move to or expansion within the community. POLICIES The following policies are proposed to guide future economic growth and development in Pequot Lakes: Strive to maintain long-term stability in the Cit�s rate of taxation.Business growth and creation in Pequot is going to depend on the City's long-term competitiveness.It is enticing to spend money today to induce near-term growth. However, when that growth does not create long-term revenues to handle ongoing maintenance expenses, the subsequent rising tax rate hurts business. Pequot Lakes must take a long-term look at its tax and expense structure and ensure businesses a solid and stable investment environment. Maintain the downtown area as the center for economic activity in Pequot Lakes.As many cities struggle to keep their downtown areas strong and vital, Pequot Lakes has an advantage in that its downtown already has a healthy mix of retail and professional businesses clustered together.The City must keep the agglomeration of its businesses and seek to infill and redevelop commercial properties as they become available. The City also needs to work to systematically reconnect and rehabilitate the neighborhoods surrounding the core downtown so as to further strengthen the businesses there.