ChaPtER 6. eCONOMIC DeVeLOpMeNt

The City will continue its efforts to attract, retain and expand a diversified business sector, which will provide a variety of jobs, strengthen the community’s tax base, add to our high quality of life, and allow Woodbury residents to have ample opportunity to both live and work in the community. In order to attract and encourage business growth, the City must have the infrastructure and ancillary services in place to support these efforts and must be able to adapt to economic change.

CHAPTER CONTENTBackground 88Economic Development Guiding Principles 88Resilient Economic Development 89Forecasts 91Economic Development Strategic Plan 91Economic Development Needs 92Implementation 94

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The Economic Development chapter’s role is to identify economic development principles and strategies to attract or facilitate commercial and industrial development. This chapter works in concert with the Land Use Chapter, which ensures that there is an adequate supply of land designated for future commercial and industrial growth.

BACKGROUNDThe Mayor and City Councilmembers serve as the President and Commissioners of the Woodbury Economic Development Authority (EDA). The EDA is a separate unit of government from the City and was formed in 1989 to fund economic development marketing operations and to act on economic development finance opportunities when needed.

The Woodbury Economic Development Commission (EDC) was created in 1996 by the City Council, replacing the former Economic Development Board. The general purpose of the EDC is to act as a coordinating body and resource agency for economic development activities and to study, review and make recommendations to the City Council regarding economic development policy. The EDC is charged with identifying both short-term and long-term economic development goals and the strategies for accomplishing those goals.

ECONOMIC DEVELOPMENT GUIDING PRINCIPLES1. Optimize development and redevelopment opportunities by ensuring there is

an adequate supply of sites and buildings to meet the demand for commercial and industrial development, redevelopment and reinvestment.

2. Retain existing industrial and commercial businesses and assist companies with their expansion needs where appropriate.

3. Attract quality businesses to further expand employment opportunities and tax base in the City.

4. Increase awareness of Woodbury as a premier destination for businesses.

5. Support reinvestment in and redevelopment of properties including the reuse or removal of vacant buildings to spur investment in the community.

6. Encourage a variety of housing opportunities to support the workforce needs of existing businesses and attract new industry to the community.

7. Identify and prioritize infrastructure improvements to prepare for and accommodate economic growth.

8. Utilize a context-sensitive, solutions-based approach to providing infrastructure to meet the needs of current businesses and provide for future growth opportunities.

9. Serve as a resource to businesses and commercial property owners on local programs to support energy efficiency, renewable energy, waste reduction and recycling.

High quality design and durable

materials result in long-term

sustainability and economic value

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RESILIENT ECONOMIC DEVELOPMENT Economic development plans and strategies of the City have direct implications for Woodbury’s resiliency. Expanding the supply of local jobs increases the ability of people to live and work in Woodbury. Table 6-1 illustrates that slightly more than twenty percent of the primary jobs in Woodbury are held by Woodbury residents. While this number is similar to or higher than most other suburban edge communities, Woodbury strives to grow this statistic over time by adding more places to work in the community. Decreasing the distance between work and home reduces regional travel which in turn has positive environmental benefits and may reduce stress on infrastructure systems. Additionally, when residents work close to home, they are more able to shop locally thereby further enhancing Woodbury’s economic competitiveness. Figure 6-1 depicts the residences of Woodbury’s primary job holders. Also, as discussed in the Housing Chapter, the City’s commitment to providing a wide variety of housing options should help Woodbury’s business community find access to the work force that they require.

As Woodbury ages, both reinvestment in and maintenance of commercial properties and the infrastructure that serves them will be required to ensure that Woodbury’s positive identity endures over time. To effectively facilitate reinvestment and redevelopment, Woodbury must capitalize on its long-term commitment to quality design and development.

DefinitionPrimary Jobs:In the data set used to identify where workers live, data is collected by job rather than individual. thus, when an individual has more than one job they would be counted twice. Primary job identifies the job of an individual where he or she earned the most money. Using this methodology, the number of primary jobs should capture the number of workers in the community.

RESIDENCE OF EMPLOYEES (SOURCE: U.S. CENSUS BUREAU)City Quantity of Primary Jobs Percent Of Employees Residing

Outside the CityPercent Of Employees Residing

Inside the City

Cottage Grove 5,572 67.4% 32.6%

Lakeville 13,594 74.2% 25.8%

Shakopee 15,559 78.7% 21.3%

Woodbury 17,985 78.8% 21.2%

Apple Valley 14,657 81.8% 18.2%

Chaska 9,982 83.3% 16.7%

Inver Grove Heights 8,882 85.4% 14.6%

Savage 6,120 85.5% 14.5%

Burnsville 31,483 86.5% 13.5%

Blaine 24,687 86.6% 13.4%

Maple Grove 32,273 87.0% 13.0%

Eagan 42,908 87.4% 12.6%

Eden Prairie 44,090 88.3% 11.7%

Oakdale 8,893 89.2% 10.8%

Bloomington 93,895 89.5% 10.5%

Plymouth 47,970 90.4% 9.6%

Shoreview 9,360 90.7% 9.3%

Minnetonka 41,838 92.7% 7.3%

Chanhassen 21,981 93.3% 6.7%

Edina 43,044 93.7% 6.3%

Maplewood 32,118 94.7% 5.3%

NOTE: The Metropolitan Council has designated Woodbury as a Suburban Edge community. The communities listed in this table represent the nine Suburban Edge communities in the Twin Cities metropolitan area, as defined by the Metropolitan Council, as well as members of the Municipal Legislative Commission.

Table 6-1. Primary Jobs in Woodbury

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Afton

Andover

Anoka

Apple Valley

ArdenHills

Bayport

BirchwoodVillage

Blaine

Bloomington

BrooklynCenter

Brooklyn Park

Burnsville

CentervilleChamplin

ChisagoCity

CirclePines

Coates

ColumbiaHeights

Columbus

Coon Rapids

Cottage Grove

Crystal

Dayton

Dellwood

Eagan

East Bethel

EdenPrairie

Edina

FalconHeights

Farmington

Forest Lake

Fridley

GemLake

Golden Valley

Grant

Ham Lake

Hampton

Hastings

Hilltop

Hopkins

Hugo

InverGrove

Heights

Lake Elmo

Lake SaintCroix Beach

Lakeland

LakelandShores

Lakeville

Landfall

Lauderdale

Lexington

Lilydale

Lino Lakes

Little Canada

Mahtomedi

MapleGrove

Maplewood

Marineon Saint

Croix

MedicineLake

MendotaMendotaHeights

Miesville

Minneapolis

Minnetonka

MoundsView

NewBrighton

NewHope

New Trier

Newport

North Oaks

NorthSaintPaul

Nowthen Oak Grove

Oak Park Heights

Oakdale

Osseo

PineSprings

Plymouth

Prior Lake

Ramsey

Red Wing

Richfield

Robbinsdale

Rosemount

Roseville

SaintAnthony

SaintLouisPark

SaintMarys Point

Saint Paul

SaintPaulPark

Savage

Scandia

Shakopee

Shoreview

SouthSaintPaul

SpringLake Park

Stillwater

SunfishLake

VadnaisHeights

Vermillion

WestSaintPaul

WhiteBearLake Willernie

Woodbury

Wyoming

RiverFalls

SomersetSomerset

RiverFalls

NorthHudson

Hudson

Worker Concentration (Workers/Sq. Mi.) <17 18-55 56-117 118-205 >206

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10

35E

35W

494

694

394

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Figure 6-1. Where Woodbury’s Primary Job Holders Live (2014)

DATA SOURCE: U.S. Census Bureau. LEHD Origin-Destination Employment Statistics (2014)

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With regard to new commercial development, the City’s commitment to high quality aesthetics leads to new commercial buildings that use durable materials and are designed to be energy efficient. Front-end architectural and construction investments result in long-term building sustainability and economic value.

FORECASTSThe Metropolitan Council forecasts (see Table 6-2) developed as part of their 2015 System Statement for Woodbury project that both the community’s population and job base will continue growing. Specifically, the Minnesota Department of Employment and Economic Development reports that Woodbury was home to 23,476 jobs in 2017 and the Metropolitan Council believes that Woodbury will be home to 28,700 jobs in 2040, a 22 percent increase in jobs during the lifespan of this 2040 Comprehensive Plan. The City will work to achieve a balance over time between the growth in jobs and households. This will help Woodbury implement its mission to “be a leading community in which to live, work and thrive.”

ECONOMIC DEVELOPMENT STRATEGIC PLAN Chapter 2 of the Woodbury City Code instructs the EDC to “propose an economic development plan for the city to include long-term strategies for economic development.” Typically, these economic development strategic plans (EDSPs) have a three- to five-year shelf life. On March 14, 2018, the City Council adopted the 2018 EDSP which was built upon previous plans dated in 2014, 2010, 2006 and earlier.

Woodbury’s close proximity to the interstate system has proven highly desirable for those companies seeking a suburban setting that is accessible to urban core job centers and amenities as well as the MSP International Airport. The City’s geographic setting along two major interstate highways also provides local businesses with an excellent means of distributing goods and services, as well as access to both customers and employees.

Woodbury has experienced significant growth since its incorporation in 1967. Home to more than 70,000 residents, Woodbury counts itself among the ten most populous cities in Minnesota. Woodbury has been very successful in developing a strong commercial tax base and has a sound history of financial management, including a AAA-bond rating since 2009, while providing an exceptional level of municipal services to a growing population. Woodbury has an enviable array of places to work and shop, which serves not only residents and employees, but attracts consumers and clients from a broader regional market.

METROPOLITAN COUNCIL POPULATION FORECASTYear Population Households Employment % Change (Population)

1970 6,184 1,399 – –

1980 10,297 3,232 - 66.5%

1990 20,075 6,927 - 95.0%

2000 46,463 16,676 - 131.4%

2010 61,961 22,594 19,438 33.4%

2020 72,500 26,800 24,100 17.0%

2030 80,500 29,500 26,400 11.0%

2040 87,800 32,100 28,700 9.1%

Table 6-2. Metropolitan Council Population Forecasts

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The City has consistently marketed the community to increase commercial development in order to ensure that residents have quality “places to work” and to balance, strengthen and diversify the property tax base. Given this economic development context, the two goals of the 2018 EDSP are to “promote Woodbury as a community of choice” and to “optimize development and redevelopment opportunities.”

ECONOMIC DEVELOPMENT NEEDSCommerical and Industrial Development Woodbury is a growing community that has evolved from a largely residential community to one that has become a regional employment, health care and shopping destination. Table 6-3 shows commercial industrial development in the City over the last two decades. Attracting commercial development to Woodbury expands and diversifies the property tax base. The City of Woodbury will continue to see residential growth over the next 20 years, thus necessitating commercial development to maintain a balanced tax base. Figure 6-2 illustrates the volume of commercial reinvestments in the community. This data reinforces that Woodbury’s existing businesses are continuing to reinvest in their facilities. Commercial and industrial development will occur within Woodbury along its major roadways and within land use areas designated as Places to Work, Gateway, Places to Shop, City Center and Urban Village.

Property Quality and MaintenanceAs Woodbury ages, there will be more opportunities for commercial reinvestment and redevelopment along with a greater need to monitor the condition of existing commercial structures to promote the maintenance and enhancement of the existing community. By promoting property maintenance and encouraging reinvestment, Woodbury hopes to avoid the conditions that create blight and require more complex and expensive intervention, and continue its long-term commitment to quality design and development.

Balance Between Places to Shop and WorkOver the past years, Woodbury has become a major regional center for commerce. As of the end of 2017, Woodbury was home to more than six million square feet of places to work and more than five million square feet of places to shop. This intensity of commercial development has made Woodbury a desirable and convenient place to shop and work. Woodbury should leverage the diversity of its business community in attracting new economic development to the commercial and industrial sectors of the community.

Table 6-3. Commercial / Industrial Development

Figure 6-2. Commercial Permits and Value of Investment

NEW COMMERCIAL / INDUSTRIAL CONSTRUCTIONYear Square Feet

2000 340,000

2001 250,000

2002 160,000

2003 72,000

2004 823,000

2005 335,000

2006 717,000

2007 138,000

2008 118,000

2009 36,000

2010 232,000

2011 5,000

2012 26,000

2013 165,000

2014 186,000

2015 454,000

2016 262,000

2017 540,000

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84

154

110

155

140

150

123

117

107

$14,800,000

$10,100,000

$15,200,000

$10,000,000

$20,800,000

$32,500,000

$16,800,000

$21,000,000

$14,300,000

$10,2000,000

$20,000,000

$14,900,000

$20,100,000

$23,300,000

$33,261,116

$25,600,000

$26,565,000

$35,575,000

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

# of Commercial Addition /Alteration PermitsValue of Investment

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Housing DemandThe demand for housing in a particular area is often driven by economic development. As new businesses create new jobs, those employees need housing to live in. With increased traffic on the regional roadway system comes a greater desire for housing close to employment. Woodbury has a wide variety of housing opportunities ranging from high-end homes for corporate executives to rental units affordable to low- and moderate-income households. Chapter 2. Community Context, includes statistics summarizing the range of housing available in Woodbury. Chapter 4. Land Use continues to encourage a balanced supply of housing in the community. Chapter 5. Housing, includes strategies for meeting local housing needs. The City of Woodbury should promote its diverse supply of housing to attract new industry.

Travel Patterns and Transit ServicesWoodbury is located along major roadways that connect the community with the larger metropolitan area. These connections provide an attractive market for companies that rely on shipping and distribution over the regional roadway system and have employees who come from all over the metropolitan area. Transit is another component of the transportation system that is important to economic development. Being within the metropolitan area, the City of Woodbury is served by Metro Transit. Current planning and engineering efforts are underway connected to the Gold Line (Bus Rapid Transit) that, if implemented, would provide both all-day bi-directional service to bring workers from the metropolitan area to Woodbury. The City should continue to encourage the development of a transit system that serves Woodbury and the east metro area. Chapter 7. Transportation, discusses the 2040 transit plan.

Woodbury seeks a variety of housing opportunities to attract employees

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IMPLEMENTATION While the City typically updates its EDSP every three-to-five years, this 2040 Comprehensive Plan should focus on the following economic development implementation steps.

1. Encourage landowners in areas guided Places to Work to consolidate land and develop a master plan for business park-type development rather than piecemeal industrial/office developments.

2. Optimize the capacity and flexibility of public infrastructure to serve business needs.

3. Encourage and facilitate infill commercial, industrial and retail development on remaining vacant parcels to optimize redevelopment opportunities.

4. Monitor status of vacant commercial buildings in order to encourage and facilitate redevelopment of underutilized or distressed properties into viable commercial, industrial and retail developments by working with property owners and interested developers.

5. Identify any barriers to redevelopment due to City code, development review requirements or market conditions.

6. Work with local businesses and industry leaders to ensure needs for expansion and development are adequately met, and maintain an open line of communication with the business sector through participation in the local Chamber of Commerce.

7. Partner with MN DOT, Washington County, Gold Line Partners, Metro Transit and other stakeholders to improve transportation and transit systems.

8. Facilitate the consideration of environmentally sensitive development that includes resource and energy conservation, waste reduction and recycling.

9. Evaluate the fiscal implications of facilitating development through investment in site readiness.

10. Facilitate entrepreneurial opportunities within the community to spur growth of small businesses.

11. Promote county, regional and state financing programs for local energy efficiency and solar energy projects on commercial and industrial buildings.