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Motion carried. Voting Yes: Acting Chairperson Kiefer, Members LeToumeau, Steffen, Gromberg, Kiefer, Kurak, and Strommen. Voting No: None. Absent: Chairperson Riley. EDA BUSINESS Case #1: Rum River Commercial Node Redevelopment Study Economic DevelopmenffTIF Specialist Sullivan noted copies of the completed study for the Rum River Commercial Node (167th Avenue and Highway 47) had been made available. Jim McComb, McComb Group, Ltd., attended the EDA meeting to review the report and participate in any discussion. ~Mr. Sullivan also noted that, at the direction of the EDA, staff had sent letters inviting the business and land owners in the area to the meeting. Several business and land owners were in attendance. Mr. McComb came forward to discuss the recommendation portion of his report. Acting Chairperson Kiefer asked Mr. McComb to give some history regarding this issue. Mr. McComb indicated that the ~,um River shopping area had been founded about 30 years ago and was the first shopping area in Ramsey. Mr. McComb noted that market research indicated there was a relatively large trade area for the Rum River commercial area; however, merchants were indicating sales had been flat since 1997. Some merchants had reported as much as a 35% decline in sales. He felt this was surprising considering the household growth in the area. Mr. McComb felt the reason for the surprising sales numbers was the dated appearance of the businesses. He started that 43% of the trade area households had moved into the area since 1990, and these residents were looking for businesses that were in line with the style of their housing. He added that the new households had higher incomes than the older households, and these new residents probably were not shopping in the Rum River Shopping Center. Mr. McComb stated that he had met with business owners and had discussed the demographic findings with them. Business owners were surprised by the numbers which reinforced Mr. McComb's theory that new residents were not shopping at their stores. He noted when you have an older customer base it will shrink because the older customers will eventually move or die. He felt this assumption explained the sales trends. Mr. McComb concluded that the Rum River commercial area should be repositioned to appeal to new residents with higher incomes. He felt that the existing businesses needed to build their sales by increasing marketing and making improvements to both their interiors and exteriors. He indicated that the 'retailers and independent businessmen would need to cooperate and market jointly, as working together will be important to the commercial area's success. Mr. McComb recommended that sanitary services be extended to the commercial areas to begin the process. In addition, the commercial area needed to be repositioned, redesigned and marketed to increase the customer base. He noted that it would be difficult, if not impossible, to attract desirable tenants until the storefronts were enhanced to reflect an updated environment. Economic Development Authority / July 14, 2003 Page 2 of 7