Agenda - Economic Development Authority - 04/19/2007

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I I I I I I I I I retailers such as a supermarketl drug, liquor, and hardware stores, and complimentary service establislunents. Rum River Commercial Area business establishments will compete with all of these shopping areas. Businesses at Rum River will serve the convenient shopping needs of trade area residents who will be able to shop close to home (Of work) for a \Vide variety of convenience goods. Customer Survey Patrons of businesses establishments in the Rum River Commercial Area were surveyed to determine home zip code, work zip code, and trip purpose. The majority (87.0 percent) of Rum River customers live in Ramsey. Inflow shDppers represented 13 percent. Convenience retail stores received about 88 percent of their business from trade area residents while other retailers received about 75 percent of their business from trade area residents. Among trade area convenience retail customers, 95 percent responded that the Rum River Commercial Area was close to home and 93.8 percent were regular customers. Shoppers at Rwn River Commercial Area consider it their neighborhood convenience center and a large percentage are regular customers. Trade Area The Rum River trade area consists of Ramsey, portions of Bums Township, Oak Grove, and Anoka. The size of the trade area is limited by present and future retail concentrations in St. Francis, Elk River, and Andover. The trade area is experiencing rapid population and household growth. Trade area households are estimated to increase from 8,093 in 2002 to 9,279 in 2005 increasing to 12,078 in 2010. By 2020, the trade area is estimated to contain as many as 18,400 households, an increase of 10,300 households. Trade area households increased at a 5.2 percent average growth rate betv.;een 1990 and 2000. Trade area households increased from 4,621 in 1990 to 8,093 in 2002, and iucrease of 3,472. Seventy-five percent of trade area households have arrived since 1990. Trade area average household income is estimated at $83,715 in 2002 and is expected to increase to almost $95,000 in 2007. Rum River trade area residents are becoming more affluent as new households. move into the area. In 1990, the trade area average household income was 15.6 percent above the MSA. By 2000, this gap had iucreased to 22.5 percent. In 1990, households with incomes above $100,000 were comparable for the trade area and the MSA, 4.7 and 4.9 percent, respectively. Households with incomes above $100,000 are increasing faster in the trade area than the MSA. By 2007, trade area households with incomes above $100,000 are estimated at 30.5 percent compared to 25.4 percent in the MSA. vi 19