2022 Economic Development Annual Report

Prepared by Ruth Tucker, Economic Development Specialist

About Blaine

Blaine is a rapidly growing metropolitan community situated 11 miles north of downtown Minneapolis. The City encompasses 34 square miles with a population of 70,979. The City’s park and recreation system provides a variety of leisure opportunities. Blaine is also home

Blaine is one of the fastest growing suburbs in the Twin Cities Metro area. Its population has grown by over 12,000 residents since 2010. Blaine continues to rank high in new housing development in the metro area.

to the National Sports Center, TPC Twin Cities golf course, and Four Seasons Curling Club. Blaine has a strong and growing industrial and commercial business sector. The City is home to over 1,400 businesses, including Aveda Corporation, Infinite Campus, Bermo Inc., Dayton Rogers Manufacturing, Fogerty Arena, and Northtown Mall. Over 24,000 people are employed in the City of Blaine by our businesses. With competitive land prices, a strong labor pool, and excellent freeway access to Interstate 35W and Highways 10 and 65, Blaine has an abundant supply of development opportunities for growing and emerging businesses. The Anoka County Airport is located in Blaine which is the Metro Area’s second busiest reliever airport.

• Population

• Median Household Income

• Number of Jobs

• Households

• Median Home Value

• Number of Businesses

Source: Metropolitan Council, 2021 Community Estimates

Sector 2021

Construction and Development

• Construction Values

• Permits

• Residential Construction and Growth

• Industrial Development and Expansions

• Commercial Development

• Opened in 2022

Residential Construction Values

Commercial Construction Values

Total Valuation

Based on New Addition, New Buildings, and Tenant Finish Permits

Residential Construction and Growth

After a record breaking 2021, 2022 witnessed continued strong housing growth. Multifamily growth was particularly strong with four new apartment buildings permitted in 2022.

Blaine, with 238 single family detached homes, 141 townhome units, and 501 apartment units, totaling 880 total units permitted, the highest since 2004.

Blaine again ranked in the top five market for housing growth among the Twin Cities suburbs.

New Residential Units 2012 - 2021

Source: Residential and Commercial Permits

2022 Industrial Development and Expansions

Blaine 35 Building B

8700 W 35W Service Dr NE

• 98,900 square foot speculative warehouse building

Blaine 35 Building C

8650 W 35W Service Dr NE

• 100,000 square foot speculative warehouse building

Turfco

1655 - 101st Avenue NE

• 20,100 square foot expansion on the north side of the Turfco facility

AC Metals

9170 Davenport Street NE

• 20,770 square foot warehouse/office expansion of AC Metals facility

Adolph’s Converters and Cores

12325 Cloud Drive NE

• 6,600 square foot addition to the existing building

2022 Commercial Development

Caribou Cabin

3445 Lake Drive NE

• 600 square foot drive thru coffee shop

Beehive Homes of Blaine

4313 Ball Road NE

• 14,235 square foot one story memory care facility

GCM Retail Building

9927 Ulysses Street NE

• 4,063 square feet, single-story, two-tenant retail building

Popeyes

12413 Ulysses Street NE

• 2,265 square foot restaurant space for Popeyes

Cafe Zupas

12391 Ulysses Street NE

• 3,317 square foot shell building for Cafe Zupas

Opened in 2022

Kingdom Baking

10130 Sunset Avenue NE

• 1,400 square foot commercial bakery

Kwik Trip

10880 Austin Street NE

• 9,156 square foot gas station and gas canopy

Blaine 35 Building A

8611 W 35W Service Dr NE

• 118,000 square foot speculative industrial building with 32 foot ceilings. Current tenants include Caerus and Jonco Die

Blaine 35 Building C

8650 W 35W Service Dr NE

• 100,000 square feet of speculative industrial space completed. Chandler Industries has leased the entire building and will move into the space in 2023

Naples Street Office Warehouse

10580 Naples Street NE

• Light industrial speculative building. UNITS Storage, Viking Engineering, and Display Arts are located in this new building

Sanctuary Business Center

10201 Xylite Street NE

• 137,000 square feet of speculative industrial space completed in 2022. ORS Nasco is leasing approximately 1/3 of the building

Business Employment

After a decline of over 3,000 jobs in 2020 due to the COVID-19 pandemic, 2021 witnessed a significant reduction in unemployment rates. Blaine gained approximately 2,800 jobs in 2021 falling about 1,200 jobs short of pre-COVID numbers.

Blaine continued to witness decreased unemployment in 2022 with Blaine having the lowest unemployment rate the city has seen since 1998. Job growth is expected to continue with estimates showing 31,000 jobs in Blaine by 2040.

Blaine Top Employers

Business Employment

Blaine Unemployment Rate

Source: Metropolitan Council Community Data

Business Outreach

3M Open Golf Tournament

The City of Blaine hosted a hospitality tent at the 3M Open in July. Blaine Staff were present Thursday through Sunday filling the tent with businesses, real estate brokers/developers, Blaine staff, and other invited guests. All allotted tickets were distributed to guests attending the event.

Economic Development Summit

The City of Blaine hosted its first annual Economic Development Summit in May to showcase the vision for the future of Blaine. The city welcomed restaurants, retailers, developers, bankers, real estate brokers and other invited guests to share in the excitement of the opportunities within the City.

Business Visits

This year staff and elected officials visited with 16 Blaine businesses and non-profits. The visits presented a great opportunity to gain insight into each company’s condition, employment size, and operations.

Sarah Grace Photography

Vividly Clean Gnomes Plus More Companion Vet Clinic

Lucy’s Burgers

Big Dipper Creamery

Mohawk Moving Fun Lab

North Memorial Senior Clinic

Fairfield Inn PDS

Primrose

Mrs. B’s Doll Shop

Elevation Beauty Electro Sign Design

Lupus Foundation

Blaine Business Council

The City played an active role in 2022 at the quarterly Blaine Business Council providing updates to the business community on development and public safety.

Home Improvement Loans and Grants

Maintaining existing housing stock is a key component to a strong economic climate in the City of Blaine. According to the Minneapolis Area Realtors, the average 2022 home sale price in Blaine was $378,820 up from $376,446 in 2021. This is above the average for Anoka County which is $358,919. Blaine has over 25,000 housing units with a quarter of those constructed prior to 1980. Blaine has a variety of programs to assist residents with housing updates and down payment assistance including the Home Improvement Loan, Down Payment Assistance Loan, Front Door Grant, Major Remodel Grant, and more. The Home Improvement Loan program is available to any homeowner, however the program’s general focus is to encourage those with older homes to make improvements and maintain housing stock. There are currently 59 outstanding home improvement loans with 15 new loans in 2022. The city also provided 7 down payment assistance loans for eligible individuals buying homes within city limits. The Front Door and Major Remodel grant programs are available to homeowners with homes older than 30 years old that were valued under $350,000. The City issued 28 grants in 2022 totaling $95,000.

EDA Fire Suppression Grant Program

In 2016, the Blaine Economic Development Authority reestablished the Fire Suppression Grant program to encourage owners of commercial and industrial buildings to install fire suppression. No new grants were awarded in 2022, however to date, the program has distributed $298,633 in grants to 16 different properties across the City.

Small Business Loan Program

In 2018, the Blaine EDA established a small business loan program to encourage reinvestment in existing commercial and industrial properties. The intent of this program is to provide additional financial assistance to small business owners who are improving an existing building and/or redeveloping a commercial or industrial property. In general, projects will increase tax base, improve blighted properties, increase employment, and bring properties into conformance with existing City and State codes. In 2022, the EDA updated the program to include interior improvements including capital expenditures as eligible expenses for this loan. Additionally, the maximum loan amount was increased to $100,000. In 2022, the City of Blaine provided a $75,000 loan to 4 Taps LLC.

EDA Land and Redevelopment Activity

Northtown Redevelopment Study

The Northtown Redevelopment Study was completed in 2022 creating a long term strategy for redevelopment of the Northtown Mall property plus the surrounding area. The study outlines district principles that help address land use, redevelopment/revitalization options, multi-modal transportation and public improvements in the study area. The City’s goal is to help Northtown Mall continue to be a relevant and important asset to the City and to spur growth appropriate with current market trends and community needs and desires. This study is estimated to take 20-30 years to reach full realization but the City has put together a working group to move forward with short term public and private improvements that will serve as the catalyst for the redevelopment of the area as a whole.

105th Area Redevelopment Study

The Blaine City Council has identified an area near 105th Avenue, Nassau Street, and Radisson Road for redevelopment into an entertainment district to serve the entire Blaine community and capitalize on the activity at the National Sports Center. The City undertook a visioning study in 2021 to guide redevelopment. The visioning study was completed in 2022 and has progressed on selecting a master developer. In late 2022, the City selected Elevage Development Group as the master developer to bring the vision for the 105th Area Redevelopment Study to life.

Demolition of 10524 Nassau Street

10524 Nassau Street was purchased by the EDA in April 2021. This building was demolished as part of the continued effort to implement the 105th Area Redevelopment plan.

Purchase of 10550 Nassau Street

The EDA acquired 10550 Nassau Street in October 2022. The building is located in an identified redevelopment area in the 2040 Comprehensive Plan and is part of the 105th Area Redevelopment Study. The City plans to demolish the building in 2023 to make way for new development.

Demolition of 8839 Central Avenue

The EDA purchased 8839 Central Avenue in April 2022. The blighted single family home was demolished to encourage redevelopment in accordance with the parcel’s current commercial zoning and land use designation.