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1 municipal utilities the development has evolved to be based primarily along the major transportation corridors. <br /> 2 Since the close proximity of businesses in the downtown provides a direct interaction amongst patrons, the <br /> 3 existing development provides a solid base to build on and an opportunity for additional growth. <br /> 4 In 2009,the city established a"Grow Zone"throughout the downtown commercial areas. In searching for a way to <br /> 5 reduce regulations and streamline the permitting process for businesses, an alternative set of standards were <br /> 6 developed for this area. Instead of the standard zoning approach,which prohibits any use not specifically allowed, <br /> 7 the Grow Zone standards instead allow nearly all uses and focus instead on the form new construction takes. <br /> 8 Where this form is compatible with the existing development pattern, not only does it add to the "destination <br /> 9 effect" of the downtown, but approvals can be made very quickly. Property owners seeking to make <br /> 10 improvements to a property within the Grow Zone may choose to either utilize the Grow Zone standards or stick <br /> 11 with the traditional approach. <br /> 12 Vdit'n the infrastructure in the downtown area in need of maintenance, there is a need to increase the amount of <br /> 13 development grow the tax base and get a higher return on the reinvestment in this infrastructure. <br /> 14 Highway 371 Corridor <br /> 15 Outside of the downtown, the Highway 371 corridor has developed in an auto-oriented pattern. For the most part, <br /> 16 this development is not tied to municipal utilities and, as such, has developed in a somewhat random distribution. <br /> 17 The corridor includes such variety as a church, a contractor yard, restaurants and storage units, amongst other <br /> 18 uses. There are areas where development is clustered together and other areas where there are large gaps <br /> 19 between enterprises. For the most part, most commercial properties are independent of each other, with their <br /> 20 fortunes minimally impacted (either positively or negatively) by neighboring commercial uses. The timing of the <br /> 21 realignment of Highway 371 has caused uncertainty for future development prospects along the corridor and has <br /> 22 further accentuated the boom/bust character of development in this area. <br /> 23 Fmployment <br /> 2008 Employment by Sector <br /> 24 These three geographic areas of <br /> Entertainment <br /> 25 development have created a local Manufacturing 3% <br /> 26 economy that highly service-oriented.The Hospitality 4% <br /> 27 2008 Business Inventory found that 469/ 5% <br /> 28 of the jobs in Pequot Lakes are service- <br /> 29 related. This is not surprising since, as a <br /> 30 neighborhood center, Pequot Lakes <br /> 31 businesses cater largely to the local and <br /> 32 sub-regional markets. Industrial <br /> 1596 f <br /> 33 Tax Base Distribution <br /> r <br /> Government <br /> 34 It is also important context to have an 170 <br /> 35 understanding of the relative tax = <br /> 36 distribution within the City of Pequot <br /> 37 Lakes. Where other area communities, <br /> 38 such as Brainerd and Baxter, draw a large percentage of their tax base from commercial development, Pequot <br /> 39 Lakes relies most heavily on residential areas. Roughly 2/3rds of the local tax base comes from residential <br /> 40 development, with more than a third of that coming from seasonal properties, which are taxed at a higher rate. <br /> 111 Page <br />