Ramsey Resident - 1985 - July/August

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Economic Development In Anoka AH istorical Perspective ,... From its earliest begin- nings, Anoka has been an in- dustrial and commercial center. The City has a long his- tory of promoting economic development. From the first sawmill to make lumber for the first bridge and Rum River dam, through the era of huge lumber mills, flour mills, starch factory, shoe factory, furniture, harness, milk, auto- mobile, tractor factories to the modern manufacturing com- panies that now make Anoka their headquarters, City lead- ers have sought" and encour- aged industrial and commer- cial development. Usually these efforts were led by pri- vate citizens, but City Govern- ment was often involved as well. Anoka began as an Indian trading post along the Red River Trail and soon exploded into a major lumber and flour milling center. Great stands of white pine on the upper Rum River and the expanding agri- cultural areas of Anoka County provided the lure for milling in- terests. Located at the conflu- ence of the Rum and Missis- sippi Rivers, Anoka was an ideal site for both water power and water transport. At their peak, petween 1854 and 1874, five sawmills employed 600 men and turned out 350,000 board feet of lumber every 24 l l ~ .. hours. Along with this indus- trial boom was a commercial boom with many new shops opening downtown to serve the growing population. Many shop owners held stock in the milling companies so the ties between retail commerce and industry were strong. During this time the Anoka Business College provided business education to students from throughout the upper mid- west. However, lumber and flour milling were seasonal in- dustries and in the 1870's there was much heated dis- cussion about attracting "enterprises that will secure employment all year around..." About this same time both in- dustries began to decline .as lumber mills moved farther north to' be closer to the re- ceding pine forests and flour mills relocated to Minne- apolis. As the lumber and flour mills ceased operation hun- dreds of men were forced to seek employment elsewhere. For an isolated prairie town like Anoka, this meant a massive exodus of the popula. tion which would also threaten commercial enterprises. In an effort to'attract new industries to Anoka, a Board of Trade was formed in 1885. The purpose of this corporation was "to ad- vance commercial, mercantile,' agricultural and manufactur- ing interests of the City and County of Anoka." This Board made some very attractive of. fers and succeeded in bring- ing several major industries to Anoka. These offers included sites, construction - of buildings, and start-up operat- ing capital through the local sale of stock. Two such enter- prises were a shoe manufac- turing company from Lynn, Massachusetts and establish- ment of the largest potato starch factory in the United States at the time. In the case of the shoe factory, the Board of Trade owned the land and building and a local bank held a mortgage. When the shoe business declined after a few years the Board of Trade gave the factory and site to the City with the stipulation that the City discharge a $5,000 mort. gage against the factory. The Board continued to operate the factory and searched for another shoe company as a buyer. Soon the North Star Shoe Company of Minneapolis agreed to run the factory for at least five years if the City re- paired the factory, provided $1,000 a year for three years for fuel, etc. and then gave the deed to the company. All par- ties abided by this agreement and North Star owned and operated the factory for The Pillsbury grist mill c. 1900 Rum River Bridge Continued from page 11 \ I.' I t! I, f It l' ! I I U old bridge. Short-Ell iott-H end rickson are the Consulting Engineers on the bridge restoration. They provide resident project repre- sentation. The Contractor is Park Construction. "Fhe con- struction contract totals 1.8 million dollars. It will be paid for with funds from HUD & FWHA (Federal), MnlDOT (State), Municipal State Aid (Local), assessments, and local utility budgets. So far, construction is on schedule. another eight years. At its in selling and disposing the peak the factory employed balance of stock of the com- over 100 people and turned out pany, if desired by the com- 1,000 pairs of shoes per day. pany." The company began During the 1880's and 1890's with great success, but was the Board of Trade actively re- overtaken in the market place cruited industries to Anoka. by the assembly-line product Some ventures were success- in Detroit after four years. The ful and others were not. In company shifted to manufac- 1891 the Board consisted of 60 turing tractors and railroad in- members, met twice a month spection cars and remained a and had about a dozen study significant force in the committees on such subjects economy until 1922 when pro- as finance, railroads, taxes, duction ceased and the build- etc. On occasion they would ing was converted to other hold secret meetings to dis- uses. cuss sensitive negotiations. It was also in 1922 when Despite their activities the Ci- another local manufacturing ty lost nearly 900 residents company came under the guid- between 1885 and 1900, an ante of Charles L. Horn. The 18% population loss. Except new company was called the for the efforts of the Board of Federal Cartridge Corporation. Trade the decline would un- Federal has formed the back- doubtedly have been much bone of the Anoka economy - greater. for over 60 years and is cur- Apparently the Board of rently the City's largest em- Trade fell into disorganization ployer with over 2,300 'em- prior to 1900 when the ployees. After World War II economy of the City stabiliz- 'Anoka experienced a housing ed. The tide of people leaving boom due to the powerful at- town had been stopped. traction of the expanding In 1906, in response to a per- Metropolitan Area. Improved sistently sluggish economy automobiles and highways and growing unemployment, a made Anoka a commuter's City Alderman suggested that suburb. The employment op- a permanent body be formed portunities for Anoka resi- to advice the City and "show dents expanded while Anoka's up the advantages of our City influence as a regional center to prosp~ptive home seekers, diminished. Other local indus- investors, and manufactur- tries such as Cornelius Com- ers." Several public meetings pany and Thermo Serv grew as were held to discuss the idea Anoka grew. During this and in March of 1906 "The growth period the role of the Commercial Club of Anoka" Commercial Club shifted from was formed. The Commercial negotiating development to Club picked up where, the promoting development. In Board of Trade left off. One of 1953 the Commercial Club was its functions was the publica- reoganized and renamed the tion of promotional materials . Greater Anoka Chamber of about the advantages of busi- Commerce which is active to- ness and industry in Anoka day promoting commerce and and Anoka County. In one industry in the City. such publication which high- In recent years our Country, lighted the local potato in- State, and City have felt the ef- dustry, the natural resources fects of inflation and growing and financial advantages of unemployment. Regional Anoka were described and this shopping centers are en- statement made: "The citizens croaching into Anoka's once of Anoka, through the Com- sovereign market areas. Once mercial Club, stand ready to again Anoka is faced with the aid and assist in every pos- prospects of potentially major sible way the location of new changes in its economic struc- industries in this City." The ture. The Central Business Commercial Club, as a corpor- District is shifting from a retail ate entity, also entered into center to a service center as financial agreements with Anoka County Government companies to raise local grows. Changes in national capital through the sale of and international markets af- stock shares. Companies as feet our major industries. In far away as Illinois and the response to this the Chamber East Coast were enthusiastic- of Commerce asked the City of ally courted. One such venture Anoka to establish an Eco- was the Veerac Motor Com- nomic Development Commis- pany which manufactured an ,sion (EDC) to advise the Coun- automobile with a valveless, cil on economic matters. The air-cooled engine. A contract Council appointed nine was signe9 by the Anoka Com- citizens representing various merical Club, Inc. with the - sectors of the Anoka economy Veerac Company to come to to form this Commission. The Anoka to manufacture their Commission is now preparing machines with the local group a plan to retain and encourage agreeing to raise $25,000 in expansion of existing busi- stock in the company. In re- ness and industry as well' as turn, three local directors had attract new industry. The EDC _ a hand in management. The hopes to carryon the rich Commercial Club also agreed legacy of our forefathers to en- to furnish the factory site of courage a strong public- five acres for five shares in the private partnership for eco- company. Finally, the Com- nomic development to benefit mercial Club agreed to assist all the citizens of Anoka. ",in every reasonable manner Progressive weathering and bound and two lanes are west salt action was causing de- bound. Two lanes are for left terioration. Traffic needs were turn stacking to south bound inadequate. The City Council Ferry St. It will be 294'6" long started the planning process and 103'6" wide with 8'5" side- in 1979 when MnlDOT "turned walks on both sides. A pedes- back" to the City TH No. 242 trian underpass will be con- (Main St.) Fifth Ave. to Ferry structed next to the east abut- St. including the Rum River ment. It will connect City Hall Bridge. When final plans and with the Bridge Square area. specifications are complete, The east and west approach MnlDOT arranges for the fund- roadways will be improved .ing of a new first class facility. with landscaping and decora- The bridge will be widened tive lighting. Its completed ap- from 4 to 6 lanes for improved pearance will be similar to the traffic flow. Two lanes are east