Agenda - Council - 11/25/2003 - Laserfiche WebLink

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CASE RUM RIVER COMMERCIAL NODE RETAIL MARKET ANALYSIS By: Megan Wald, Associate Planner Background: On March 11, 2003 the City Council authorized McCombs Group to complete a Retail Market Analysis for the commercial node of Highway #47 and 167th Avenue, also referred to as the Rum River Commercial Node. Jim McComb completed the study and the final report was sent to the City Council with the Weekly Update on Friday, November 14, 2003. Observations: The market analysis contains extensive information regarding the demographics of the Rum River Commercial area. Staff has included with this case a copy of Mr. Comb's summary of findings and recommendations sections of the final report. To highlight a few key demographics; the market study first defined the trade area for the commercial node and found that it consists of Ramsey, portions of Bums Township, Oak Grove, and Anoka. The subject commercial node has reported sales declines of 13 to 15 percent over the past five years. This is concerning due to the fact that the average household income for the trade area is estimated at $83,715 for the year 2002 and is expected to increase to almost $95,000 in 2007. Also the 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. Jim McComb states that the growing population and income in the trade area 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, hardware store, services and medical uses. Although some of these services already exist, he points out that the existing buildings and their appearance do not convey freshness in merchandise offerings or retail strategies. Mr. McComb 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 variety of lifestyles and housing choices. Higher density housing should be incorporated in the area 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.