3(b) Housing and Economic Development Sections

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ECONOMIC DEVELOPMENT � I NTENT Have a well-balanced local economy that builds on Pequot Lakes' existing business community, attracts outside investment,encourages entrepreneurs,promotes the creation of diverse jobs and serves the consumer and service needs of Pequot Lakes'residents and the surrounding neighborhoods.Pequot Lakes is a well-established community. II Growth is needed to avoid stagnation and the city needs to get a higher utilization on public investments by encouraging development within the existing infrastructure. BACKGROUND The railroad stop was the original catalyst for economic growth in Pequot Lakes. Businesses established within walking distance of the station and were then surrounded by neighborhoods built on the traditional grid system of � the time. As transportation switched to the automobile, highway-oriented development began to be established � along the main roads in and out of town. Most of this was commercial in nature with a uniquely small-town flavor. In time,a business park was established off of the highway to provide for more intensive commercial and industrial operations within the City. in the years since the Comprehensive Plan was last updated, these three areas have � continued to mature in distinct patterns. Business Park The growing capacity within the community provided an opportunity for Pequot Lakes to establish a business park using a grant and loan package from the Federal government. Although slow to establish at first, the park has gradually expanded as local businesses have relocated for more space and new enterprises have opened. The industries in the park provide the area with a degree of economic stability that comes with having year-round jobs and products that are exported from the area. In 2008,the City modified its land use regulations to provide more development flexibility within the park(smaller lots and increased coverage limits)to get higher utilization out of the existing infrastructure investments and entice development of the remaining undeveloped properties. An analysis of the industrial park investment(See Appendix)demonstrates that the park could not have been built without significant assistance from the federal government, through a rural utility. This has some dramatic impiications for both future expansion and the ongoing maintenance of the existing park.To expand the park with near-term tax revenues would require significant additional federal investment,which is uncertain to happen.And as the park ages and the infrastructure requires more maintenance,there is the very likely possibility that it will cost more to service the park than it generates in tax revenue.To ensure this does not happen,the development pattern in the park needs to evolve to be more efficient, and expansion options need to be minimalist (without major infrastructure)or put on hold until the imbalances in the current park are corrected.