Agenda - Economic Development Authority - 07/08/2010

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CASE # 3 RETAIL NODE AT HWY 47 & 167TH AVENUE RETAIL MARKET ANALYSIS AND MASTER PLAN REVIEW By: Amber G. Miller, Planning Manager Tim Gladbill, Associate Planner Background: in July 2003, the McCombs Group completed a Retail Market Analysis for the commercial node of Highway #47 and 167s' Avenue, also referred to as the Rum River Commercial Node. Following completion of the mazket analysis, the City contracted with HKGi to provide master planning assistance for the study azea. Additionally, in June 2008, the EDA met with the Buxton Company to review their proposal, brought forward by staff, to conduct a retail mazket assessment for the Rum River Commercial Node and the Town Center site. This was completed in three phases during 2008. Subsequent to this assessment, the City has attended several International Council of Shopping Center (ICSC) events to meet with retailers to implement the recommendations of this report. Observations: 2003 Market Analvsis: The 2003 market analysis contains extensive information regarding the demographics of the Rum River Commercial Node. The 2003 Mazket Analysis defined the trade area for the commercial node as Ramsey as well as portions of Nowthen, Oak Grove, and Anoka. The subject commercial node reported decline of sales of 13 to 15 percent between 1998 and 2003. This is concerning due to the fact that the average household income for the trade area was estimated at $83,715 for the year 2002 and was expected to increase to almost $95,000 in 2007. Also the number of households within the trade area increased at a 5.2 percent average. growth rate between 1990 and 2000, which equates to approximately 4,621 households in 1990 and 8,093 in 2002. The 2003 Market Analysis states that the growing population and income in the trade azea can continue to support new and expanded businesses within this neighborhood shopping area. The best-suited retail businesses for this area include an expanded supermarket, drug store, liquor store, hazdwaze store, services and medical uses. Although some of these services already exist, the 2003 Mazket Analysis points out that the existing buildings and their appearance do not convey freshness in merchandise offeririgs or retail strategies. The 2003 Market Analysis provides several recommendations • Sanitary sewer services needs to be extended to this area. Creating the appropriate commercial and residential density in the area cannot be accommodated by septic systems. • Housing development should be promoted within a mile and a half of the commercial node to provide additional consumers for business establishments. Housing types should include single family, townhomes, detached townhomes, and multi-family units to accommodate a wide vaziety of lifestyles and housing choices. Higher density housing should be incorporated in the azea immediately surrounding or in the Rum River Commercial area. • It will be difficult, if not impossible, to attract desirable retail tenants and consumers, until the commercial buildings have an appearance that will compliment store formats and interiors of new businesses.