3A - Economic Development - Laserfiche WebLink

Home Browse Search

1 between enter rises. For the most Dart. most cornmercia orooerties are inde endent of each other- with their 2 fortunes minimal im acted either ositivel or ne ative I b nei hborin o, commercial uses, The timid of the 3 reaii nrnent of Fii hwa 371 has caused uncertaint for future develo vent ros acts alon the corridor and has 4 furfheracentuated the boom bust character of develo meat in this area. 5 CURRENT TRENDS 6 As a neighborhood center, the Pequot Lakes economy is impacted by a number of factors beyond its ability to 7 control or even influence.The most pressing factors,created by the national recession,have changed dramatically 8 in just the last two years. It now appears that, for Pequot Lakes as well as other similar communities across the 9 country,the recent period of rapid growth has come to an end.Although it is not clear what will follow,there are 10 some realities that are starting to emerge as critical to the City's future economic development potential. 11 • Population migration.The current economic downturn has manifested itself most clearly in the mortgage 12 market,where home prices have fallen. National reports indicate that one in four mortgage holders owe 13 more on their homes than they are worth,which inevitably stifles the ability for people to sell and move. 14 For an area like Pequot Lakes that has been reliant on people moving to the area to start new businesses 15 and in growth in the workforce from in-migration,reduced mobility presents a changed reality. 16 • Aging infrastructure. A tremendous amount of infrastructure has been put into the ground to 17 accommodate and, to some extent, induce growth. Whether or not the resulting tax base justifies the 18 investment,the infrastructure deteriorates and will someday require substantial,expensive maintenance. 19 In the current(and future) economy, it will be necessary to make the highest use of each infrastructure 20 investment the city chooses to maintain. 21 • Aging population. Elderly households typically have incomes that are more stable and fluctuate less with 22 market conditions, good or bad. A Pequot Lakes population that is slightly older than the state average 23 (which itself is considered disproportionately aging) indicates some built in resistance to policies that 24 involve risk or the potential for tax rate fluctuations. 25 • Less government support.State and federal governments are realizing the same kind of fiscal limitations 26 as local governments and are questioning priorities for future spending.Assistance for local governments 27 has been cut dramatically and future cuts are almost assured.With populations nationwide shifting from 28 rural to urban/suburban areas, policymakers are questioning the wisdom of future infrastructure 29 investments in less populated areas. While there will likely be some money available from state and 30 I federal sources,the City of Pequot Lakes needs to prepare for the day when%4e*- outside overnmental 31 support is negligible. 32 • More connected world. From the Internet to cellular phones,our ability to communicate with each other 33 has vastly expanded. Where Pequot Lakes was once remote and isolated, it now has excellent city-wide 34 broadband service, with competition that drives further innovation and service improvements. This 35 presents a new opportunity that can be capitalized on. 36 • increased technology advancements. Along with improvements in communication, other technological 37 I advancements continue to benefit Pequot Lakes businesses.The ability to attract and retain an educated 38 workforce,the ability to collaborate with partners across the globe and the options for researching new, 39 innovative approaches are all enhanced by continued improvements in technology.It is clear that the next 40 era,however it manifests itself,will be led by those able to best utilize new advancements in technology. 41 I It is likely that the future of Pequot Lakes will be oriented primarily towards businesses that sell goods and services 42 to the local market and businesses that utilize technology to create and/or distribute goods and services beyond 12 ) Page