4. Resource material from Comp Plan and 2014 BRE survey for discussion on work planV. 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.
A. Economic Competiveness Goals and Objectives
Goal: Concentrate on retaining and expanding local businesses in and around the Village Center
and existing Rural Commercial districts.
Obiectives•
• Strengthen public services to attract and retain businesses and workforce.
• Identify and allow in -fill development opportunities for business expansion.
• Promote appropriately -sized new businesses that create synergy with existing
businesses and overarching goals.
• Use outreach/branding initiatives to retain businesses and employment in Scandia.
• Cooperate with businesses, educational institutions, community organizations, and
government to provide information to local businesses.
• 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.
Encourage businesses providing local services, as well as tourism and recreation
businesses in the Village Center.
Work with building owners to maintain and upgrade building facades and properties
consistent with the Village Center's small town image and historic character.
Encourage public and private investment in community -oriented institutions
including the community center and city hall, church, cemeteries, and
Gammelgarden.
Goal: Actively support the retention and expansion of Scandia community -scale agricultural
operations.
Obiectives•
• Work cooperatively with other governmental agencies and community groups to
develop programs to help keep agricultural land affordable in Scandia.
• Update ordinances and regulations to facilitate growth of small-scale agricultural
uses.
Goal: Encourage home-based entrepreneurs and businesses.
Obiectives•
• Identify opportunities to encourage home-based businesses to transition to a
storefront when its market is adequately developed.
• Review standards to support home occupations while ensuring compatibility with
surrounding land uses.
Goal: Expand access to internet services throughout the entire City.
Objectives:
• Encourage internet providers to expand service areas and bandwidth throughout the
DRAFT Scandia 2040 Comprehensive Plan Economic Competiveness
Prepared by: Bolton & Menk, Inc. Page 39
City.
• Explore potential opportunities for public investment or grants to expand internet
capabilities.
• As development or redevelopment occurs, support the addition of infrastructure that
will enable expansion of internet technology.
B, 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
272
40 50
W
1970 1980 1990 2000 2010 2011 2012 2013 2014 2015 2020 2030 2040
620 607
531 526 540
620
730
r.on
Source: Metropolitan Council Tabulation of US 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.
DRAFT Scandia 2040 Comprehensive Plan Economic Competiveness
Prepared by: Bolton & Menk, Inc. Page 40
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
C. 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)
1. 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
DRAFT Scandia 2040 Comprehensive Plan Economic Competiveness
Prepared by: Bolton & Menk, Inc. Page 41
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
Prepared by: Bolton & Menk, Inc. Page 42
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Economic Development Authority (EDA) Business Retention and Expansion Study
City of Scandia
Date:
Company Name: _
Address:
Survey Participant:
Phone: E-mail:
Website:
Name of Corporate Headquarters (if different than above):
Address:
Phone: E-mail:
Website:
Title:
Thank you for participating in the EDA's Business Retention and Expansion Study. The program is
sponsored by the Scandia Economic Development Authority.
Objective of the BRES program:
1. To gain an understanding of the business community's views of the local government and
economy.
2. To determine company plans for expansion or relocation.
3. To strengthen the communications bridge between the business community and local
government.
4. To establish concrete data to aid strategic planning efforts.
1. How is your firm structured?
Corporation (public)
Corporation (closely held)
Partnership
Sole Proprietorship
Other (specify)
2. Do you own or lease this location?
Own
Lease
3. If you currently lease, when does the lease expire?
4. What year was this business established at this location?
5. Do you believe your product/services have unique qualities that give your business a competitive
advantage?
Yes
No
Don't Know
6. If yes, please describe these unique qualities.
7. What are the major products/services offered by this establishment?
First Major product/service:
Second Major product/service:
Third Major product/service:
Fourth Major product/service:
8. What percentage of your sales come from each of the major products/services identified above?
9. How many employees currently work at this establishment?
1 to 5 6 to 10 11 to 15 16 to 20 21 to 25 26 to 50 50 or more
Full Time
Part Time
Temporary
10. How many employees worked at this establishment three years ago?
1 to 5 6 to 10 11 to 15 16 to 20 21 to 25 26 to 50 50 or more
Full Time
Part Time
Temporary
11. How many employees (estimated) will work at this establishment three years from now?
1 to 5 6 to 10 11 to 15 16 to 20 21 to 25 26 to 50 50 or more
Full Time
Part Time
Temporary
12. If you reported part time employees, how many are:
Seasonal:
1to5
_6to10
11 to 15
_16 to 20
21 or more
1% to 24%
25% to 49%
50% to 74%
75% to 100%
Percent of sales: first major
product/service
Percent of sales: second major
product/service
Percent of sales: third major
product/service
Percent of sales: fourth major
product/service
9. How many employees currently work at this establishment?
1 to 5 6 to 10 11 to 15 16 to 20 21 to 25 26 to 50 50 or more
Full Time
Part Time
Temporary
10. How many employees worked at this establishment three years ago?
1 to 5 6 to 10 11 to 15 16 to 20 21 to 25 26 to 50 50 or more
Full Time
Part Time
Temporary
11. How many employees (estimated) will work at this establishment three years from now?
1 to 5 6 to 10 11 to 15 16 to 20 21 to 25 26 to 50 50 or more
Full Time
Part Time
Temporary
12. If you reported part time employees, how many are:
Seasonal:
1to5
_6to10
11 to 15
_16 to 20
21 or more
Year Round:
1to5
_6to10
11 to 15
_16 to 20
21 or more
If seasonal, when are your busy seasons (select all that apply):
Spring
Summer
Fall
Winter
13. Did your firm's employment change over the last five years?
Yes
No
14. If yes, please check three (3) main reasons for the employment change over the past five years:
_Technological changes
Changes in management
Growth in demand, or lack of demand
Number of contracts
Business did not exist five years ago
Improved or decreased efficiency
Government regulation
Increased competition
Renovation/expansion
New products/services
_Entered new markets
Change in subcontracting
Corporate decisions/policies
Other:
15. What is your current employment hiring state?
Increasing workforce
Downsizing
Stable
16. What resources are you currently using to locate new employees?
Ad in metro -wide papers
Ad in local community papers
Placement office of four-year or two-year colleges
Private search firms
Referrals from existing employees
Job service
_Temporary agency
Hire our own apprentices
Promote from within
_Local job fair
Internet
List Other:
17. If more than 50% of your employees live outside of Scandia, please indicate why you think that is
the case?
18. If your workforce was to expand by 10%, would there be affordable housing for these workers
within 30 minutes of your place of business?
Yes
No
Uncertain
19. From your perspective as a business person, please rate housing opportunities in this community for
OWNED homes.
Excellent Above Average
Average
Below Average Very Poor
Quality
Below Average
Availability
Quality
Affordability
Location
20. From your perspective as a businessperson, please rate housing opportunities in this community for
RENTAL housing.
Excellent
Above
Average
Average
Below Average
Very Poor
Quality
Availability
Affordability
Location
21. How would you rate the local labor force?
Excellent Above Average Below Average Very Poor
Average
Quality
Availability
Quantity
Stability
22. Please indicate where most of your employees live.
Within 5 miles of business location
Within 5 to 20 miles of business location
More than 20 miles from business location
23. Please select the category that best describes your company's gross sales in 2013?
Under $25,000
$25,000 to $99,999
$100,000 to $199,999
$200,000 to $499,999
$500,000 to $999,999
$1 million to $2.49 million
$2.5 million to $4.9 million
$5 million to $9.9 million
_$10 million or more
24. Which of the following strategies do you currently use to increase your sales during less busy days
and hours?
Nothing
Advertise
Offer product promotion
Extend days and/or hours of operation
Change product/service offerings and/or mix
Other:
25. Does your company have a website?
Yes
No
26. If no, what is your main reason for not marketing over the internet?
No Internet Access
Slow Internet connection
No IT support
Cost
Time commitment
Need more information
Other:
27. What are the three (3) types of advertising you use the most?
Yellow Pages
Daily Newspaper
Weekly newspaper
Weekly shopper paper
Radio
TV
Billboards
Direct mail advertising
Visitor's guide
_Magazines
Brochures/flyers/shopping bags
Other:
28. Do you share advertising expenses with other businesses to promote your business area?
Yes
No
29. From the list below, please check the top five (5) factors likely to have a major impact on your
business in the next three (3) years.
New products
Changing customer tastes
Demographics
Higher consumer spending
Foreign competition
Domestic competition
Raw material shortages
Energy Costs
Transportation
Wage rates
Raw material costs
Financing availability
_Taxes/government policies
Other:
30. Please check which of the following best describes your company's business activity.
We have too much business, capacity is strained
Business activity is just right
We have too little business activity; excess capacity
Wide seasonal or cyclical variations in demand
31. Over the last 3 years, have any of these business factors increased, stayed the same or decreased?
32. Over the next 3 years, do you think the following factors for your business will increase, stay the
same, or decrease?
Increased
Stayed the Same
Decreased
Number of customers
Sales -Total Revenue
Profits
Employees -Full Time
Employees -Part Time
Employees -Year
Round
Employees -Seasonal
32. Over the next 3 years, do you think the following factors for your business will increase, stay the
same, or decrease?
33. In general, how do you meet or become acquainted with service providers?
Someone you know referred/recommended the service provider
You knew the service provider before they started working for you
Referral by a trade association or professional organization
Competitor used them
Advertising or direct mail or yellow pages
Unsolicited cold call
Article in business publication or newspaper
Service provider newsletter/web page
Other:
34. Check the three most important factors in evaluating and selecting a service provider.
Experience of service provider
Service provider's knowledge of your industry
Increase
Stay the Same
Decrease
Number of customers
Sales -Total Revenue
Profits
Employees -Full Time
Employees -Part Time
Employees -Year
Round
Employees -Seasonal
33. In general, how do you meet or become acquainted with service providers?
Someone you know referred/recommended the service provider
You knew the service provider before they started working for you
Referral by a trade association or professional organization
Competitor used them
Advertising or direct mail or yellow pages
Unsolicited cold call
Article in business publication or newspaper
Service provider newsletter/web page
Other:
34. Check the three most important factors in evaluating and selecting a service provider.
Experience of service provider
Service provider's knowledge of your industry
Proximity to your location
Price
Service provider's approach or methodology
Service provider's reputation
Recommendation from a trusted source
Personality or "likeability" of service provider
Credentials of service provider
Referrals from other clients
Other:
35. Check the areas that you have used external service providers for in the past three years (select all
that apply:
Business management
Design or engineering
Manufacturing operations
Quality related issues
Environmental and safety
Information technology
Organizational development
Marketing/sales
Financial/accounting
Human resources development
Other:
36. To meet your current or recent financial need, what type of capital are you considering or did you
consider?
Equity Capital
Debt Capital
37. If you plan to use debt capital, which of the following financial institutions do you plan to use or did
you use?
Commercial bank
Savings and loan
Federal loan program (USDA, SBA)
State Economic Development Loan (DEED, Regional Commission, or Foundation)
Other:
38. When you sought your most recent loan, what types of activities or facilities did (do) you hope to
finance.
Purchase of land without buildings
Purchase of land with buildings
New building construction
Building expansion
Building renovation
Operating capital
Inventory
Machinery or equipment
Other:
39. Please provide information on your firm's credit experience for the past three (3) years in each of
the following categories.
40. Have you made any of the following changes in the last 3 years?
Yes No
Changed mix of goods/services
Added or subtracted product lines
Entered new markets
Modernized product technology
Adopted labor-saving technologies
Made other capital improvements
41. Will you be expanding/improving your current building or equipment?
Yes
No
42. If yes, do you face any constraints?
No constraints
Need financial assistance
Need planning/design assistance
Able to obtain
Able to obtain
Unable to
Don't
Not
desired credit
some credit
obtain
know
applicable
Short term loans
(<1year) secured
Short term (<1year)
unsecured
Long term loans
(1-5yea rs)
Long term loans
(>5 years)
Commercial mortgage
Home equity loan for
business purposes
Line of credit
Equipment financing
or lease.
40. Have you made any of the following changes in the last 3 years?
Yes No
Changed mix of goods/services
Added or subtracted product lines
Entered new markets
Modernized product technology
Adopted labor-saving technologies
Made other capital improvements
41. Will you be expanding/improving your current building or equipment?
Yes
No
42. If yes, do you face any constraints?
No constraints
Need financial assistance
Need planning/design assistance
Need to acquire land
Other:
43. Are you considering another (additional) branch or store?
Yes
No
44. If yes, what location are you considering?
Elsewhere in Scandia
Elsewhere in Washington County
Outside the county, but in Minnesota
Outside the state
Undecided
45. If yes, when will you open the new branch or store?
Within 6 months
6 months to a year
1-3 years
46. Are you considering moving, selling or closing this business?
No
Considering moving
Considering selling
Considering closing
47. What conditions influence your decision regarding moving, closing, or staying put? (select all that
apply)
Market conditions
Overcrowded building or space
Land locked or expansion limited
Transportation problems
Crime or vandalism
Low worker productivity or unavailability of workers
Environmental concerns
Building code problems
High local taxes
High state taxes
Lease expiration
48. If moving, selling, or closing, when?
Within 6 months
6 to 12 months
_1 to3years
3 years or more
Don't know
49. If moving, where will you move?
Elsewhere in Scandia
Elsewhere in Washington County
Elsewhere in Minnesota
Outside of Minnesota
Undecided
50. Any other plans for business changes over the next three years? (check all that apply)
No change
Change in mix of goods or services
Add new product or service lines
Add new technology
51. Do you have enough room to expand?
Yes
No
52. Does your store/storefront need updating or "cosmetic" improvement?
Yes
No
53. Where do you see additional expansion or growth in your business?
New building or addition
Additional employees
Additional equipment or new technology
New training program for employees
Additional financing
Other:
54. What, if any, conservation or "green" actions have you taken or do you plan to take with your
business?
55. If you face constraints on renovation or expansion, what are they?
Would have an inadequate financial return on investment
Inability to get a loan
Insufficient space available for expansion
Environmental or pollution control limitations
Planning and zoning restrictions
Governmental regulation prohibits expansion
Shortage of adequate labor
Shortage of adequate housing for labor
Other:
56. What overall grade would you give the community as a place to do business?
A (excellent)
B (above average)
_C (average)
D (below average)
_F (poor)
57. In the last 3 years, did the community's business climate get stronger, weaker, or stay the same?
Got stronger
Got weaker
Stayed the same
58. What overall grade would you give the retail shopping in the community?
A(excellent)
_B(above average)
C (average)
D (below average)
F (poor)
59. Is your firm having any problems with local community services?
No
Yes. If so please specify:
60. What is the most significant thing Scandia could do to help improve your business activity?
61. What specific concerns would you like to see addressed?
62. Do you live in Scandia?
Yes
No
63. Why or why not?
64. Rate the improvement needs in Scandia
65. If your firm (or one just like it) was trying to select a new location, how important would each of the
following community factors be in this decision?
Needs significant
improvements
Needs
improvement
Does not need
improvement
Not
applicable
Appearance of buildings
Transportation costs
Appearance of business
signs
Energy costs
Cleanliness of sidewalks
Localtaxes
Cleanliness of streets
Interest rates
Congested streets near your
business
Workers' compensation rates
Parking near your business
Unemployment insurance
Pedestrian access to your
business
Employee health care costs
Street lighting
Availability of raw materials
Variety of stores
Availability of credit
65. If your firm (or one just like it) was trying to select a new location, how important would each of the
following community factors be in this decision?
Critically
important
Above
average
importance
Average Below Not at all
importance average important
importance
Wage rates
Transportation costs
Energy costs
Localtaxes
State taxes
Interest rates
Workers' compensation rates
Unemployment insurance
Employee health care costs
Availability of labor
Availability of raw materials
Availability of credit
Proximity of four -lane highway
Airport facilities
Availability of industrial site
Availability of housing
Availability of quality water
Availability of public
transportation
Telecommunications quality
Broadband Access
66. Please indicate whether you believe the cost of doing business in your community is high,
acceptable, or low.
High Acceptable Low Does not
apply
Building costs
Corporate taxes
Environmental regulations
Health care
Inventory taxes
OSHA requirements
Payroll taxes
Property taxes
Public utilities
Transportation of product to market
Workers compensation
67. From your perspective as a businessperson, please rate the following amenities and services in
Scandia.
Excellent
Above
average
Average Below
average
Poor
Does
not
apply
Roads, highways and freeways
Snow and ice removal
Street/sidewalk cleaning
Street repairs
Water supply
Solid waste disposal
Sewers/septic
Natural gas service
Internet access
Electrical service
Cable television service
Telecom infrastructure
Public transportation
Rail service
Air service
Fire protection
Excellent
Above
average
Average
Below
average
Poor
Don't
know
Police protection
Emergency medical services
Hospitals
Medical care, doctors
Schools (k-12)
Technical/vocational schools
Quality of music/arts programs
Excellent
Above
average
Average
Below
Average
Poor
Does
not
apply
Access to higher education
Quality higher education
Hotel facilities
Conference facilities
Recreational facilities
Recreation services
Housing opportunities
Labor force quantity
Labor force quality
Proximity to major suppliers
Proximity to major market
Overall quality of life
68. With which local school district are you most familiar?
Forest Lake
Chisago Lakes
Stillwater
Home school
69. Please rate the following characteristics for K-12 for the school system you checked in the previous
questions.
Excellent
Above
average
Average
Below
average
Poor
Don't
know
Quality of instruction
Quality of facilities
Quality of teaching resources
(computers, books)
Quality of curriculum
Number of curriculum choices
Quality of sports programs
Quality of music/arts programs
70. From the following list of features, please indicate those that enhance or detract from a positive
business environment in Scandia.
71. Rate your level of success with the marketing strategies listed below.
Excellent Very Good
good
Strongly
enhance
Directory listings (yellow pages, etc)
Neither
enhance
nor
detract
Daily newspaper
Strongly
detract
Safe environment
Weekly shopper paper
TV
Shopping/professional services
Billboards and other signage
Window displays
Recreation/entertainment/cultural
activities
Web page
Email/internet marketing
School systems
Magazines
Brochures/flyers
Library systems
Frequent buyer/shopper program
Highway infrastructure
Housing opportunities
Local business environment
Location
Wage rates
Cost of living
71. Rate your level of success with the marketing strategies listed below.
Excellent Very Good
good
Fair Poor NA
Directory listings (yellow pages, etc)
Daily newspaper
Weekly newspaper
Weekly shopper paper
TV
Radio
Billboards and other signage
Window displays
Direct mail advertising
Web page
Email/internet marketing
Visitor's guide
Magazines
Brochures/flyers
Referral program
Frequent buyer/shopper program
Give-aways
Donations/sponsorships
Word of mouth
Other
72. Which of the following market research methods do you use (select all that apply)?
Personal interactions/interviews with customers
_Track customer purchases
Response cards by mail
Focus groups
Census/other data
Information from Industry Association
Hire market research consultants
Other:
I don't do market research
73. What are your thoughts on store hours?
I am open all the hours I need to be
I can't be open more hours for personal reasons
I would like to be open more hours, but I can't afford the staff
I would like to be open more hours, but I can't find good staff
I would be open more hours if I were sure of sales
I would be open more hours is everyone else were
I have been open evening hours in the past and it was not worthwhile
Other:
74. Have you had evening hours in the past?
Yes
No
75. If yes, how many evenings (past 6pm) per week were you open?
1
2
3
4
5
6
7
76. Why did you discontinue evening hours (select all that apply)?
Personal reasons
Difficulty hiring staff for evenings
Not cost effective
Other stores in Scandia were not open evenings
Other:
77. Please rate the degree you are experiencing the following challenges in your business.
Major Minor No Don't
challenge challenge challenge know
Poor building condition
Conflict with building owner or tenant
Expensive rent
Product delivery or loading challenges
Insufficient financing
Internet competition
Language barriers
Shoplifting or employee theft
Vandalism
Perception of safety
Public using your bathroom
Traffic flow/signage
Congested streets near your business
Road construction
Street closure for events
Streets not clean
Sidewalks not clean
Lack of pedestrian traffic
Insufficient parking
Signage
Restrictive business regulations
Smoking ban
Competition from Forest Lake
Other:
78. If financial assistance were available, would you consider building improvements such as fagade
work or new signage?
Yes
No
Don't know
79. Considering all factors, how would you rate the overall atmosphere in your local shopping area?
Excellent
Very good
Good
Fair
Poor