Study finds plenty of room for retail in Rosemount
Rosemount has a lot of potential to bring more retail and industrial businesses to town, according to a market study commissioned by the Dakota County Development Agency. As for bringing big corporate offices like Best Buy to town? It's unlikely.
The study, completed by Maxfield Research, found that Rosemount and other outer ring suburbs such as Farmington and Lakeville have a lot of potential for business growth because there is a lot of land available to develop. As more households move into the area, said Jay Thompson of Maxfield, the likelihood of more retail and industrial businesses coming in is good.
"Rosemount is underserved especially when it comes to retail," said Thompson. He added that Rosemount's population is projected to increase by more than 10,000 residents by 2030.
The lack of retail, both big box and neighborhood stores, means Rosemount residents are spending their money in other cities such as Apple Valley and Inver Grove Heights. Per household, Thompson said Rosemount residents spend roughly $14,000 a year for retail in town. In Eagan that number is slightly more than $33,000.
"All those dollars are going somewhere else," said Thompson.
The CDA funded the countywide commercial-industrial market study to assess supply and demand in all cities and townships in Dakota County through 2030. The study was completed in May with conclusions made for three categories -- commercial/retail, office and industrial development. The study was meant to help cities develop economic growth strategies.
CDA director of community revitalization Dan Rogness said the agency is taking a more active role in helping communities throughout Dakota County with economic development. The county adopted six strategy initiatives in order to enhance and coordinate the economy at a regional level. One of those strategies relates to the coordination of strategic infrastructure and land development which led to the study. The study cost the CDA $26,500.
Over the last couple months the CDA has presented the study findings to city governments. On Sept. 16, Thompson shared Rosemount's results with the port authority, which handles the city's economic development planning.
The study didn't reveal much but did solidify thoughts on how the city should proceed in the future. Community development coordinator Kim Lindquist said the information will be used to regroup the city's marketing strategy to attract more businesses. She added that the city wants to attract more retail and will look at adding more office and industrial businesses.
When Thompson presented the information to the port authority on Sept. 16 commissioners seemed disappointed a better outlook wasn't presented for attracting a big corporate office to town.
Thompson said it would be hard for Rosemount to attract such a business because it is not located near big interstates like Eagan and Burnsville.
"Retail is Rosemount's biggest potential," said Thompson during the meeting. Retail includes big box stores such as Walmart or Target.
Industrial and office space was another area where Thompson said Rosemount had potential to grow. Specifically he said Rosemount could use additional medical offices to serve the public. In addition, he said smaller businesses such as real estate and insurance agencies will seek space. The projected demand for office space in Rosemount was estimated at 125,000 sq. ft. The study projected Eagan will have the highest demand for office space at 2.5 million sq. ft.
As for industrial growth the study estimated that demand for space in Rosemount will equal 475,000 sq. ft. Throughout the county it is projected that 7.6 to 8.7 million sq. ft. will be needed between 2008 and 2030. Lakeville ranked the highest, with demand projected at 2.3 million sq. ft.
While Rosemount will continue to grow and experience further development, other communities in Dakota County will see growth drop especially Northern cities that have reached or are nearing capacity.
"We've seen the best of times concerning overall growth in the county," said Rogness
To view the study visit the CDA's web site at www.dakotacda.org and click on the Reports, Data and Resources link.