6.a 5. Economic CompetativenessV. ECONOMIC COMPETIVENESS
Minnesota Statutes §473.859 Subd. 1 states local comprehensive plans "shall contain objectives,
policies, standards, and programs to guide... redevelopment and preservation for all lands and
waters within the jurisdiction of the local governmental unit." This comprehensive plan will address
this requirement through the implementation chapter at the end of the plan. The following sections
detail basic background information on employment and income to provide current conditions for
the community and to summarize public comments from the community survey, focus groups, and
open houses relating to economic development.
1. Economic Competitiveness Goals and Objectives
1) Concentrate on retaining and expanding local businesses in and around the Village
Center and existing Rural Commercial districts.
a) Strengthen public services to attract and retain businesses and workforce.
b) Identify and allow in -fill development opportunities for business expansion
c) Promote new businesses that create synergy with existing businesses and
overarching goals.
d) Use outreach/branding initiatives to retain businesses and employment in
Scandia.
e) Cooperate with businesses, educational institutions, community organizations,
and government to provide information to local businesses.
f) Create development and land use standards to guide development into the Village
Center and away from a linear pattern along the highways or undeveloped rural
intersections.
g) Encourage businesses providing local services, as well as tourism and recreation
businesses in the Village Center.
h) Work with building owners to maintain and upgrade building facades and
properties consistent with the Village Center's small town image and historic
character.
i) Encourage public and private investment in community -oriented institutions
including the community center and city hall, church, cemeteries, and
Gammelgarden.
2) Actively support the retention and expansion of Scandia community -scale
agricultural operations
a) Work cooperatively with other governmental agencies and community groups to
develop programs to help keep agricultural land affordable in Scandia.
b) Update ordinances and regulations to facilitate growth of small-scale agricultural
uses.
3) Encourage home-based entrepreneurs and businesses
a) Identify opportunities to encourage home-based businesses to transition to a
storefront when its market is adequately developed.
b) Review standards to support home occupations while ensuring compatibility with
surrounding land uses.
4) Expand access to internet services throughout the entire City.
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a) Encourage internet providers to expand service areas and bandwidth throughout
the City.
b) Explore potential opportunities for public investment or grants to expand internet
capabilities.
c) As development or redevelopment occurs, support the addition of infrastructure
that will enable expansion of internet technology.
2. Employment in Scandia
Figure V-A shows the historical employment in Scandia from 1970 through 2016 and
projected employment to 2040. Employment in Scandia peaked in 2011 with 620
employees. Projections show employment increasing in Scandia considerably in the next 20
years, projecting to add 190 jobs by 2040. However, this is contingent on the ability of
businesses and industries in the city to support employment growth as well as the ability of
the city to support new and growing businesses.
800
700
600
500
400
300
200
100
0
Figure V-A - Historical and Projected Employment in Scandia
Employment in Scandia (historical and projected)
519
387
620 607
531
730
690
272
40 50
W
1970 1980 1990 2000 2010 2011 2012 2013 2014 2015 2020 2030 2040
Source: Metropolitan Council 7 abulation of UJ Census and American Community Survey Data
Figure V -B shows employment in Scandia by industry in 2015. Of Scandia's total 540 jobs,
46% fall into "All Other Industries," suggesting a diversity of jobs within the city. The
largest single industry is Educational Services, which provides 21% of jobs located in
Scandia. Health care and social assistance and construction make up the second and third
largest single industries in the city, respectively.
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Figure V -B - Employment by Industry
Employment by Industry in Scandia, 2015
Transportation and Warehousing 1%
Public Administration 6%
Professional and Technical Services 29f,
Construction 10%
I
Health Care and Social Assistance 11%
I I I
Educational Services 2100E
I I I
All Other Industries 46%
i
Administrative and Waste Services 4%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Source: Metropolitan Council
3. Income
Figure V -C shows median household income in Scandia over the last 25 years. Median
household income has increased in Scandia, with the largest increase between 1990 and
2000. These medians are nearly identical to Washington County median household
incomes.
Figure V -C - Median Household Income
$90,000 $84,130
$80,556
$80,000
$70,000 $68,036
$60,000
$50,000 $45,915
$40,000
$30,000
$20,000
$10,000
$0
Census 1990 Census 2000 ACS 2006-2010 ACS 2011-2015
Source: US Census and American Community Survey (Not Adjusted for Inflation)
4. Public Comments
Appendices D and E provide detailed responses regarding community and economic
development. In brief, Community Survey respondents identified businesses struggling in
the low-density city as one of the top three challenges facing the city and commercial
growth as the number one priority for the city for the next 20 years. Residents of Scandia
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want growth to match existing community character, supporting existing small businesses
and the history of the community. There is interest in a range of community businesses and
attractions, many of which can cater to both local and tourist markets, such as coffee shops,
restaurants, and recreation. There is also interest in exploring alternative agricultural
opportunities, like co-ops, and tourism as key elements of the city's economy, as traditional
agriculture will become increasingly difficult to maintain. Focus groups also noted slow
and sporadic internet speed as a limiting factor in business operations.
DRAFT Scandia 2040 Comprehensive Plan Economic Competiveness
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