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1 ECONOMIC DEVELOPMENT 2 INTENT 3 I Have a well-balanced local economy that builds on Pequot Lakes' existing business community, attracts outside 4 investment, encourages entrepreneurs, promotes the creation of diverse jobs and serves the consumer and 5 service needs of Pequot Lakes' residents and the surrounding neighborhoods. Pequot Lakes is a well-established 6 community. Growth is needed to avoid stagnation and the city needs to get a higher utilization on public 7 I investments by encouraging development within the existing infrastructure. 8 BACKGROUND 9 The railroad stop was the original catalyst for economic growth in Pequot Lakes. Businesses established within 10 walking distance of the station and were then surrounded by neighborhoods built on the traditional grid system of 11 the time. As transportation switched to the automobile, highway-oriented development began to be established 12 along the main roads in and out of town. Most of this was commercial in nature with a uniquely small-town flavor. 13 In time, a business park was established off of the highway to provide for more intensive commercial and industrial 14 operations within the City. In the years since the Comprehensive Plan was last updated, these three areas have 15 continued to mature in distinct patterns. 16 Business Park 17 The growing capacity within the community provided an opportunity for Pequot Lakes to establish a business park 18 using a grant and loan package from the Federal government. Although slow to establish at first, the park has 19 gradually expanded as local businesses have relocated for more space and new enterprises have opened. The 20 industries in the park provide the area with a degree of economic stability that comes with having year-round jobs 21 and products that are exported from the area. In 2008, the City modified its land use regulations to provide more 22 development flexibility within the park (smaller lots and increased coverage limits) to get higher utilization out of 23 the existing infrastructure investments and entice development of the remaining undeveloped properties. 24 An analysis of the industrial park investment(See Appendix) demonstrates that the park could not have been built 25 without significant assistance from the federal government, through a rural utility. This has some dramatic 26 implications for both future expansion and the ongoing maintenance of the existing park.To expand the park with 27 near-term tax revenues would require significant additional federal investment,which is uncertain to happen.And 28 as the park ages and the infrastructure requires more maintenance, there is the very likely possibility that it will 29 cost more to service the park than it generates in tax revenue. To ensure this does not happen, the development 30 pattern in the park needs to evolve to be more efficient, and expansion options need to be minimalist (without 31 major infrastructure) or put on hold until the imbalances in the current park are corrected. 101 Page