Agenda - Economic Development Authority - 04/19/2007

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I I I I I I I I I I Trade area average household size is 3.14, which is above that of the MSA, which was 2.82. Also, the trade area has a smaller percentage of people over 65 years of age than the MSA, 2.9 percent and 9.6 percent, respectively. Trade area employment totaled 9,779 people working at 765 business establisbments in 2002. Annual payroll is over $374 million resulting in an average. annual employee salary of $38,318, which is significantly higher than the Minneapolis-St. Paul MSA average of $25,353. Manufacturing is the largest employer (3,647 employees) followed by services with 2,122. Development Potential Rum River Commercial.A.rea is Ramsey's original neighborhood shopping area. The locational factors that support its creation remain today; however, the area must adapt to meet changing market conditions. Redevelopment of the Rum River Commercial Area is supported by: . Continued household grovvth \vill increase trade area population at an average rate of 4.5 percent annually from 2002 to 2007. This will offset the impact of future competition from Town Center. . The trade area's affluence is demonstrated by average household income of $83,705 in 2002 compared to $71,738 in the MSA. . By 2007,30.5 percent of trade area households will have incomes above $100,000 compared to 25.4 percent in the MSA. Rum River Commercial Area has a growing trade area population that will support new and expanded businesses consistent vvith a neighborhood shopping area. Rum River Commercial Area will continue as a neighborhood shopping area. It has the potential to have a full compliment of convenience retail and services vvith additional food service establishments. Accommodating this grovvth will require repositioning of the retail area to build sales volume at existing retailers and also acconunodate future growth. The most likely retail stores and services to locate in the Rum River Commercial Area would be convenience retail businesses normally associated willi a neighborhood shop:ping area. This would include an expanded supermarket, drug store, liquor stores, hardware stores, services and medical uses. Some of these components exist and others can be added. Estimates of supportable GLA by merchandise category for 2005, 2010, 2015 and 2020 contained in Table i total about 115,900 square feet in 2005 including existing retail and service establishments. Supportable square footage is estimated to expand to about 260,000 square feet in 2020. Since it is unlikely that all of these business establishments will choose to tocate in Rum River Commercial Area, it is reasonable to assume that the potential is about 70 percent of supportable GLA as shown at the bottom of Table i. vii 20