Coon Rapids Quarterly Economic Development Report January 2016

Coon Rapids Quarterly
Economic Development Report
January 2016
Introduction
The City of Coon Rapids is committed to a well-rounded approach to economic development. This
report will illustrate the city's economic climate with the most recent data available. The following report
covers development, employment and housing activity, and shows a steady improvement in many areas of the
local economy through the 4th quarter of 2015.
Data on employment and wages come from the Minnesota Department of Employment and Economic
Development’s Quarterly Census of Employment and Wages, which released its 2015 Q2 data in late 2015.
Housing data come from the Northstar MLS, which contains data up to one month old.
Development Report
Year-to-Year Comparison
Total Building Permits Issued
Total Building Permit Valuation
New Dwelling Permits Issued
New Commercial Building Permits Issued
2014 Q4
385
$6,968,130
0
2
2015 Q4
471
$48,545,311
12
9
Q4 2015 Highest Value Building Permits
Project Type
New Commercial
New Commercial
Interior Remodel
New Dwelling
New Dwelling
Deck Replacements
New Dwelling
New Dwelling
New Dwelling
New Dwelling

Description
River North Apartments
Superamerica
Mercy Mother Baby Center
Single-Family Home
Single-Family Home
Robinwood Apartments
Single-Family Home
Single-Family Home
Single-Family Home
Single-Family Home
Address
10940 Crooked Lake Blvd.
1523 Coon Rapids Blvd.
4020 Coon Rapids Blvd.
9772 Vale St.
3730 Mississippi Dr.
3133 109th Ln.
3750 Mississippi Dr.
12138 Wedgewood Dr.
13277 Avocet St.
156 124th Ln.
Permit Valuation
$18,823,265
$2,000,000
$1,079,651
$375,062
$367,503
$347,193
$327,456
$316,887
$308,451
$306,657
The 167-unit River North Apartments at 10940 Crooked Lake Boulevard was by far the most significant
for which building permits were issued in the fourth quarter. In addition, permits were issued for
several higher value houses throughout the City.
Economic Development News

The City partnered with Anoka County and GreaterMSP on the first ever Upriver Commercial Real
Estate Summit in October. Over 70 real estate professionals attended the event, which was intended to
promote economic development in Anoka County.

The City sponsored and had a booth at the Minnesota Commercial Real Estate Expo in Minneapolis in
October. The event provides an opportunity to promote the City and for key staff to build relationships
with commercial real estate brokers from around the metro area.

The City closed on the sale of land adjacent to the Coon Rapids Ice Center for construction of the River
North Senior Apartments. The City played an active role in facilitating 167-unit senior apartment
project, including selling the land, providing a loan, and providing tax-increment financing.

In Port Riverwalk, the Coon Rapids Fire Department burned three older apartment buildings at 98649950 East River Road as part of a training exercise in November. This property will be held for future
development.

A vacant City-owned lot at 2260 Coon Rapids Boulevard was sold for construction of a new house.
The HRA acquired an older house at 807 87th Lane for redevelopment. Since its inception, 16
properties have been redeveloped through the HRA's Scattered Site Acquisition Program.

City staff drafted a zoning code amendment to allow for microbreweries and taprooms in Coon
Rapids.

A searchable interactive map was added to the City's web site to allow users to locate available
commercial and industrial property in Coon Rapids.

The Home for Generations II program, which provides financial incentives to homeowners who take
on large remodeling projects, continued to generate significant interest. In 2015, 42 architectural
consultations were performed and 18 grants were approved for a total of $59,625 and $7,420 in permit
rebates. The 18 projects had a total improvement value of $1,147,380.
New Businesses - Q4 2015
Name
Location
Business Type
Kirkland's
Jimmy John's
Carhartt
Gordman's
Edward Jones Investments
12646 Riverdale Blvd.
1835 Gateway Dr. #102
12680 Riverdale Blvd.
3340 124th Ave. NW #2
11650 Round Lake Blvd. #106
Shopping & Specialty Retail
Restaurants, Food & Beverages
Shopping & Specialty Retail
Shopping & Specialty Retail
Finance & Insurance
Current Major Development Projects
River North Senior Apartments
109th Ln. and Crooked Lake Blvd.
Construction is underway on a 167-unit senior apartment
building adjacent to the Coon Rapids Ice Center.
Gordman's
3340 124th Ave. NW #2
Construction had started to accommodate a new Gordman's home furnishings and clothing store in the former
Rainbow Foods space in the Riverdale Crossing shopping center.
Superamerica
15xx Coon Rapids Blvd.
A new Superamerica convenience store is
nearly complete on the northeast corner of
Coon Rapids Boulevard and Egret
Boulevard.
Coon Rapids Development Map
Legend
River North Senior Apartments
Gordman's
SuperAmerica
Employment Report
Employment in Coon Rapids by Industry
Industry
2015 Q2
Manufacturing
2,861
Trade, Transportation and
Utilities
5,637
Information
229
Financial Activities
709
Professional and Business
Services
2,218
Education and Health Services
5,736
Leisure and Hospitality
3,090
Other Services
1,075
Total, All Industries

Total Employment in Coon Rapids
22,500
22,000
21,500
21,000
20,500
20,000
2007
22,069
2008
2009
2010
2011
2012
2013
2014
Employment in Coon Rapids has recovered from its low point in 2010 to surpass pre-recession figures.
Trade, transportation, utilities, education, and health services provide the bulk of private employment in
the city, although a significant manufacturing presence exists as well.
Average Weekly Wages in Coon Rapids by Industry
Industry
Manufacturing
2015 Q2
$1,320
Trade, Transportation and
Utilities
$657
Information
$448
Financial Activities
$999
Professional and Business
Services
$770
Education and Health Services
$900
$850
$800
$750
$1,202
Leisure and Hospitality
$298
Other Services
$540
Total, All Industries
$854

Average Weekly Wage in Coon Rapids
$700
$650
2007
2008
2009
2010
2011
2012
2013
2014
Wages in Coon Rapids have seen steady growth since 2007. Average annual wage growth in the city since
2007 is 3. 1%, which outpaces inflation. Manufacturing maintains a higher weekly wage than any other
sector in Coon Rapids. Many of the city’s industries with the highest employment shares pay a high wage.
Data source: Minnesota DEED QCEW
Total Employment in Select MSP Suburbs
40,000
Andover
35,000
Blaine
30,000
Burnsville
25,000
Fridley
20,000
Golden Valley
Maplewood
15,000
Ramsey
10,000
Roseville
5,000
Woodbury
-
Coon Rapids
2013 Q1
2013 Q2
2013 Q3
2013 Q4
2014 Q1
2014 Q2
2014 Q3
2014 Q4
Average Weekly Wages in Select MSP Suburbs
$2,500
Andover
Blaine
$2,000
Burnsville
Fridley
$1,500
Golden Valley
Maplewood
$1,000
Ramsey
Roseville
$500
Woodbury
$0
2013 Q1

Coon Rapids
2013 Q2
2013 Q3
2013 Q4
2014 Q1
2014 Q2
2014 Q3
2014 Q4
Coon Rapids is a developed community, and its workforce maintains a slow, steady growth in line with its
population. The outliers in the wage graph are largely due to the presence of large employers in
Maplewood (3M), Golden Valley (General Mills) and Fridley (Medtronic). These employers tend to pay
higher wages, which is reflected in the graph.
Data source: Minnesota DEED QCEW
Housing Report
Median Days on Market (Single-Family, 12-Month
Average)
55
50
45
40
35
Sep-15
Oct-15
Nov-15
Dec-15
Oct-15
Nov-15
Dec-15
Aug-15
Jul-15
Jun-15
May-15
Apr-15
Mar-15
Feb-15
Sep-15
Coon Rapids
Jan-15
Dec-14
Nov-14
Oct-14
Sep-14
Aug-14
Jul-14
Jun-14
May-14
Apr-14
Mar-14
Feb-14
Jan-14
Dec-13
30
Anoka County
Closed Sales (Single-Family, 12-Month Sum)
800
750
700
650
600
550

Aug-15
Jul-15
Jun-15
May-15
Apr-15
Mar-15
Feb-15
Jan-15
Dec-14
Nov-14
Oct-14
Sep-14
Aug-14
Jul-14
Jun-14
May-14
Apr-14
Mar-14
Feb-14
Jan-14
Dec-13
500
The housing market in Coon Rapids has strengthened considerably over the past few months. Low median
days on market is a measure of housing market activity, and Coon Rapids outperforms the countywide
average. While it increased significantly during 2015, the number of closed sales tapered off during the
fourth quarter of 2015.
Data source: Northstar MLS
Median Sales Price (Single-Family, 12-Month Average)
$200,000
$195,000
$190,000
$185,000
$180,000
$175,000
$170,000
$165,000
$160,000
$155,000
Sep-15
Oct-15
Nov-15
Dec-15
Oct-15
Nov-15
Dec-15
Aug-15
Sep-15
Jul-15
Jun-15
May-15
Apr-15
Mar-15
Feb-15
Jan-15
Dec-14
Nov-14
Oct-14
Sep-14
Aug-14
Jul-14
Jun-14
May-14
Apr-14
Mar-14
Feb-14
Jan-14
Dec-13
$150,000
Coon Rapids
Months Supply of Homes for Sale (Single-Family)
4
3.5
3
2.5
Coon Rapids

Aug-15
Jul-15
Jun-15
May-15
Apr-15
Mar-15
Feb-15
Jan-15
Dec-14
Nov-14
Oct-14
Sep-14
Aug-14
Jul-14
Jun-14
May-14
Apr-14
Mar-14
Feb-14
Jan-14
Dec-13
2
Anoka County
Single-family home sale prices in Coon Rapids have climbed steadily over the past two years, but the pace
of growth accelerated during the latter part of 2015. When market activity and volume are taken into
account as well, the Coon Rapids housing market is at the strongest it has been since the recession.
Data source: Northstar MLS