Downtown Market Anaylsis a Renaissance Underway

DOWNTOWN MARKET ANAYLSIS A RENAISSANCE UNDERWAY

Fall 2014

www.citycentermankato.com/partnership.php City Center Mankato – Downtown Market Analysis -A Renaissance Underway- Fall 2014

Acknowledgements

This report was compiled by the City Center Partnership, its staff, volunteers and students in the Minnesota State Mankato Urban & Regional Studies Institute Studio Course. The process followed was adapted from the University of Wisconsin-Extension’s “Downtown and Business District Market Analysis” online toolkit.

Report Compiled & Written by: Eric T. Harriman, Executive Director, City Center Partnership John F. Considine III, Business Development Resource Manager, Greater Mankato Growth

Project & Research Coordination: Kelly Henry, Project Assistant, City Center Partnership

Project Steering Committee: Andrew Willaert, Committee Chair Paul Osdoba, Profinium Cathy Brennan, Brennan Companies Kristin Prososki, City of Mankato Dain Fisher, Coldwell Banker Fisher Group Kyle Smith, Tailwind Group Tom Frederick Jr., Pub 500 Kevin Velasquez, Blethen, Gage & Krause Mary McClure, McClure Agency Jim Whitlock, Brickhouse Graphics Julie Nelson, Small Business Development Ctr

Data Collection Assistance: Greater Mankato Growth: John F. Considine III, Business Development Resource Manager

Minnesota State University, Mankato: Benjamin Oppong Effah, Urban & Regional Studies Graduate Student Prawan Amataya, Urban & Regional Studies Graduate Student Chima Obidiegwu, Urban & Regional Studies Graduate Student

With Faculty Advisement by: Dr. Miriam Porter, Minnesota State Mankato, Urban & Regional Studies Institute Dr. Russell Fricano, Minnesota State Mankato, Urban & Regional Studies Institute

Creative & Graphic Design provided by: Red Door Creative

Community Support: A special thanks to all the community members and visitors who provided input and engaged in this process.

Table of Contents EXECUTIVE SUMMARY: ...... 5 INTRODUCTION: ...... 5 Purpose and Goals of the Analysis ...... 5 What is City Center Mankato ...... 5 Who is the City Center Partnership ...... 6 What is our Mission ...... 6 Methodology ...... 6 UNDERSTANDING THE MARKET: ...... 7 Trade Area Analysis ...... 7 Demographic and Lifestyle ...... 9 Geography and Community Context ...... 12 Local and Regional Economy ...... 17 Business/Property Owners Survey ...... 22 Consumer Survey ...... 22 Visitor Intercept Survey ...... 22 Peer City Comparisons ...... 23 OPPORTUNITIES BY SECTOR: ...... 26 Retail and Services ...... 26 Restaurant and Culinary...... 27 Arts and Entertainment ...... 27 Lodging ...... 28 Office Space ...... 28 Residential/Housing ...... 28 FUTURE PLANNING & DEVELOPMENT IDEAS: ...... 28 Building Usage ...... 28 Marketing, Imaging and Branding...... 29 Business Retention/Expansion ...... 29 Entrepreneurship Support ...... 30 Business Recruitment ...... 30 Niche Development ...... 30 Benchmarking ...... 30 APPENDIX ...... 31

EXECUTIVE SUMMARY:

City Center Mankato is a unique urban destination but that has only scratched the surface of its potential.

When using the Mankato destination trade area, it is clear that the region has a principle draw coming from the south and southwest. This includes portions of Northern Iowa and extends halfway to Sioux Falls, SD. By using the Mankato Destination Trade Area, businesses can better align customer attraction efforts and research their particular customers in this region as they are more likely to frequent the Mankato area.

City Center Mankato has a higher concentration of College Town Tapestries than other regional communities and higher than some regional college communities like St Cloud, MN. Combined with the other predominant tapestry of Great Expectations, the City Center is comprised of younger than average residents that have a lower median household income than the national average due to enrollment in higher education and having just started their careers. They also have a lower home ownership rate and these residences typically indulge in convenience purchases while enjoy a very active lifestyle.

City Center Mankato is a highly walkable yet confined and linier district. This pattern of development makes it difficult to achieve a critical mass of development. Even so, the City Center is an employment hub of the Greater Mankato area. The top five areas of employment are in Administration & Support, Public Administration, Accommodation & Food Service, Health Care & Social Service, and Manufacturing with all but the last two having a higher concentration in the City Center than elsewhere in the community.

Visitors to City Center events trended toward day-trips only, though this might be a fault in surveying events that would generally attract overnight stays. Their average expenditures when in the community were in the $50 range and trended towards food/drinks, entertainment and cultural activities. Direct marketing by similar events to cross-promote has proven to be highly successful. Furthermore, outdoor/athletic enthusiasts will commonly participate in multiple events in a year so securing more partnerships built around the outdoors and recreation would help to cross-promote the City Center’s emerging active lifestyle.

On average, City Center Mankato was more comparable to other Regional or National Peer Cities downtowns and less like Minnesota Comparable Cities’ downtowns. The trends show that the City Center resident is more tech savvy, travels less, is more physically/health conscience but doesn’t visit the doctor, has less long term investments, goes out for entertainment more than for culture, and spends more on apparel and convenience items. This is likely a result of the younger age of City Center residents, which are frequently attending college.

A lack of retail and services in the City Center is preventing the critical mass necessary to become a vibrant retail and service district. Sustained co-op marketing campaigns might help change perceptions, but efforts must be taken to attract new business or expand existing businesses. One such business and customer attraction initiative is the OPEN Initiative, a concept from the City Center Partnership.

Also, efforts to enhance the culinary experience in the City Center along with diversifying culinary options could prove to attract more visitors and be economically sustainable.

City Center Mankato – Downtown Market Analysis -A Renaissance Underway- Fall 2014 Direct and purposeful cultivation of the Entertainment District and the adjacent Arts & Historic District will yield significant results. Combined with pedestrian enhancements, unique shops, and more family friendly activities, the City Center would be poised to become a premier destination in the Upper Midwest. As a result, the pending Arts & Historic District Plan should take on a new level of importance and similar planning initiatives should occur to direct the growth of the Entertainment District.

Survey respondents noted that there is a preference of housing within the City Center, which would include more apartments above commercial buildings as well as mid-high rise condominiums. Plus, to support the strong desire for specialty shops over franchises, new development and redevelopments should seek to build ground level spaces for unique shops and attempt to find locally owned tenants before franchises.

Maintaining the highest possible standards in walking and bike friendliness is critical for the future success of the City Center. Also, marketing efforts should be undertaken by the City Center Partnership in order to counter the negative perception of pedestrian friendliness in spite of having a high Walk Score. Enhanced pedestrian and bike amenities such as bike parking, benches, greening, lighting and even security patrols could improve user’s perceptions. Furthermore, marketing efforts should also be undertaken to highlight the City Center events, unique shops and family friendliness. Plus, common reasons for visiting the City Center and their frequency of occurrence should be taken into consideration when engaging in marketing initiatives.

These findings are further summarized in the Fall 2014 City Center Market Analysis.

City Center Mankato – Downtown Market Analysis -A Renaissance Underway- Fall 2014 INTRODUCTION: Purpose and Goals of the Analysis This analysis is intended to provide the City Center business and community leaders information that can assist in guiding development. Used properly, the market analysis should help with business development, retention, attraction and expansion. The plan provides an understanding of the general City Center characteristics that can be used by businesses and should be combined with other sets of information before making fundamental changes to any business.

If should be noted that this market analysis in an inaugural effort to collect relevant market analysis information. In this first year, an effort was made to collect substantial amounts of information for Demographics/Characteristics, Surveys/Focus Groups, and Comparative Cities to establish a baseline understanding that can be added to in consecutive years. By focusing on one area annually, the data is never substantially out dated and collected infrequently enough so as to limit unnecessary work. Vacant sub-sections of this report can be further built out in subsequent phases of analysis.

What is City Center Mankato City Center Mankato is the heart of Forbes “Best Small Places for Business & Careers” (2014). This is the Southern Minnesota destination for arts, entertainment, government, professional services and community events. With small business and major corporations ranging from retail, agribusiness, finance, telecommunications, outdoor adventure services and many fun spots for a great coffee, food or drinks. City Center Mankato is a business destination you cannot afford to ignore.

Centrally Located City Center is the geographic center of a metropolitan with nearly 100,000 people and 250,000 people within a 60-minute commute, and over 26,000 higher education students. City Center Mankato is an employment, entertainment and professional services hub for hundreds of thousands in Southern Minnesota.

Quality Space and Infrastructure In recent years, the City Center has seen $10’s of millions in major office building remodels, new office tower developments, and rehabilitation of unique storefronts. Supporting these spaces are direct access to US Hwy 169, MN Hwy 60 and the nearby US Hwy 14; giving you regional access to Minneapolis/St. Paul, Rochester, Iowa and South Dakota. Moreover, on a local level, the City Center is the convergence of metropolitan arterial roads, transit, bicycle and regional trail infrastructure punctuated with thousands of surface or ramp parking stalls. So finding your perfect space with a competitive advantage will not be an issue in City Center Mankato.

Top Quality Talent Great talent equals great business expansion opportunities and the regions 26,000 higher education students located in five institutions, including Minnesota State Mankato the largest MNSCU institution and second largest in the state, makes that possible. According to the 2014 Talent Supply & Demand Report, our regional supply of talent “exceeds” or “greatly exceeds” local demand in many areas and presents a great opportunity for business development.

City Center Mankato – Downtown Market Analysis -A Renaissance Underway- Fall 2014 Tremendous Business Development Opportunities in:  Health Science Technology  Arts, Communications & Information Systems  Agriculture, Food & Natural Resources (especially Biology Majors)  Business, Management & Administration

Great Livability Livability, or the desirability to live in an area, is a major factor in a successful business. Without a highly livable community filled with events, activities, community engagement and fun things to do for young and old, your business will be at a disadvantage. Luckily, the City Center enhances regional livability through great urban living, a vibrant nightlife, exciting sporting events and a great family friendly scene. City Center Mankato will become your asset in attracting and retaining key talent to your business.

Who is the City Center Partnership The City Center Partnership (CCP), is an LLC of Greater Mankato Growth, Inc., a nonprofit organization representing its members and a community vision in pursuit of a remarkable urban experience for all who live, work, play and invest in City Center Mankato. The CCP strives to provide leadership in this endeavor by addressing or advocating for planning, legislation, transportation, economic development and numerous public and private initiatives. These initiatives serve to strengthen the overall downtown business, cultural, entertainment, recreational, and residential communities, and to enhance the image of City Center Mankato.

What is our Mission Our mission, as a private/public partnership, is to be a catalyst for implementation of the City Center Renaissance Plan and support private & public investment in City Center projects, programs and initiatives that attract a greater number of customers, employees and residents to the City Center.

Methodology The process followed was an adapted from the University of Wisconsin-Extension’s “Downtown and Business District Market Analysis” online toolkit (http://fyi.uwex.edu/downtown-market-analysis/). The project combined three key areas of data collection, which included Demographics & Economic Data, Surveys & Focus Groups, and Peer City Comparisons. Due to the complexity of collecting such information at once and to enhance and maintain the relevancy of this report, one section should be should be updated annually in a three year rotation. For reporting purposes, and to maintain continuity with the UW-Extension format, the findings are arranged in three different categories of: Understanding the Market, Opportunities by Sector and Future Planning & Development Ideas.

City Center Mankato – Downtown Market Analysis -A Renaissance Underway- Fall 2014 UNDERSTANDING THE MARKET: Trade Area Analysis A trade area is representative of where the majority of visitors will originate. In establishing a Mankato trade area various focuses could be used to establish geographic extents for different market segments as seem in Table 1. For this study the general destination trade area, which offers a more encompassing geographic and demographic area, was used.

Table 1: Potential Trade Area Variations  General Destination  Tourists  Arts/Culture  Convenience  Higher Education Students  Food/Drink/Entrainment  Local Residents  Healthcare  Recreation  Daytime Employees  Retail/Specialty Retail  Other

Located 72 miles Southwest of Minneapolis/St Paul, 154 miles East/Northeast of Sioux Falls, SD and 85 miles West of Rochester, MN; the Mankato area is one of four principle metropolitan areas (Minneapolis/St Paul, Rochester, Sioux Falls and Mankato) with trade areas in Southern Minnesota.

The Mankato Destination Trade Area offers a potential extent to which the City Center area could attract potential visitors/consumers for major purchases. As a result, it will not capture the most refined prospective on the City Center trade area. However, knowing the area from which people are willing to travel still offers a potential customer attraction area, even if it is a secondary reason to frequent the Mankato area.

Rational for calculating the trade area is based on the gravity model which states, that a consumer will (in general) select a destination based on its larger size as it will generally have greater choices for a visitor. In formulating the trade analysis, it was clear that the Mankato Area is in direct competition with the three Metropolitan areas of:

 Minneapolis/St Paul, MN  Sioux Falls, SD  Sioux City, IA

Along with the six Micropolitian areas of greater than 14,500 population:

 Marshall, MN  Faribault, MN  Albert Lea, MN  Hutchinson, MN  Owatonna, MN  Mason City/Ft. Dodge, IA

In the calculation of the destination trade area, some variations to the gravity model were utilized to account for travel convenience and, in a limited capacity, with customer attraction evidence from large area institutions.

This trade area is an oblong shape that extends farther to the Southwest that to the Northeast of Mankato proper. This results from the closer proximity to larger and more trade areas to the Northeast. As a result, the Mankato trade area includes portions of Northern Iowa and extends halfway to Sioux Falls, SD.

City Center Mankato – Downtown Market Analysis -A Renaissance Underway- Fall 2014 In assessing a trade area based more on convenient access to regular services, Figure 2 highlights a 10 minute drive and walk time (credit: www.flaviogortana.com/isoscope/). This is a more likely distance of travel for regular services like getting your haircut or buying gas and groceries.

As a result, these two matrix the likely extents of larger to smaller trade areas are apparent.

Findings: By using the Mankato Destination Trade Area businesses can better align customer attraction efforts or research their particular customers. In using this type of trade area businesses, that are Figure 1: Mankato Destination Trade Area not a typical destination for major purchases, should align marketing tactics that capitalize on or enhance the experience of visitors entering the community for other reasons.

Additional Research:

 Research into missing services and destinations in the adjacent regional trade areas should be compiled and assessed for their ability to attract additional consumers through focused marketing campaigns or attraction of such services to the City Center. (Consider: Figure 2: City Center Convenience Travel Times graduate student/intern project)

City Center Mankato – Downtown Market Analysis -A Renaissance Underway- Fall 2014  Regular and enhanced revisions to the destination trade area, along with focused areas as found in Table 1, should be undertaken to enhance the understanding of the complexities in downtown trade area. (Consider: professional contracted services or graduate student project)

Demographic and Lifestyle

According to Civic Technologies, the Tapestry Segmentation system classifies US neighborhoods based on their socioeconomic and demographic compositions. The power of Tapestry Segmentation allows you to profile consumers and constituents in a number of ways. The below descriptions from Civic Technologies of the City Center tapestries provides an insight into the general characteristics of the residents.

Figure 3: City Center Tapestry Map Old and Newcomers “Are residents of transitional neighborhoods either beginning their careers or retiring. They range in age from their 20s to 75 and older. There are more singles and shared households than families in these neighborhoods. The median household income of $39,234 is below the US median. Educational attainment, college, and graduate school enrollment are above average. More than half have moved in the last five years and more than 60 percent rent. Their purchases reflect the unencumbered lifestyles of singles and renters. Their leisure activities are as varied as their ages. They exercise by walking, swimming, and going bowling”

City Center Mankato – Downtown Market Analysis -A Renaissance Underway- Fall 2014 Midlife Junction “The median age for residents in these neighborhoods is 37 years; nearly 20 percent are aged 65 years or older. Households are a mix of family types and singles who live alone or share housing. Most are still working; although at 61 percent, the labor force participation rate is slightly below average. A third of the households receive Social Security. The median household income is $42,694. Sixty-two percent of residents own their homes. They live quiet, settled lives as they move from child-rearing into retirement. They are careful spenders, always looking for bargains, and not swayed by fads. On weekends, they eat fast food or go to family restaurants such as Friendly’s or Perkins.

Milk and Cookies “Upscale living on a family allowance, Milk and Cookies represents young, affluent married couples who are starting their families or already have young children. Ninety percent of Milk and Cookies households earn income from wages. The median household income is $57,170. Fifty-eight percent have attended college. They prefer single-family homes in suburban neighborhoods of cities and 71 percent of households have at least two vehicles. They settle into their family-oriented lifestyle and they focus on family and the future.”

College Towns “With a median age of 24.4 years, College Towns is the third youngest of all the Tapestry. One-fourth of households are occupied by married-couple families. They are focused on their education; 59 percent are enrolled in college or graduate school. Because many students only work part-time, the median household income of $32,360 ranks near the low end. Most of the employed residents work in the service industry, holding on- and off-campus jobs in educational services, health care, and food preparation. One in seven College Towns residents lives in a dorm on campus. Students in off-campus housing live in low-income apartment rentals. Convenience dictates food choices. They enjoy concerts and college sports games, play pool, and go to movies and bars. They also participate in public activities including fund-raising and volunteer work.”

Rust Belt Traditions “Primarily a mix of married-couple families, single parents, and singles who live alone. With a population of 8.4 million, this segment is one of Tapestry Segmentation’s largest. The median age is 35.9 years, just below the US median. The median household income is $42,337. Half of the employed residents work in white-collar jobs. The backbone of older industrial cities in the Great Lakes border states, residents of these neighborhoods live in modest, single-family homes. These residents stick close to home; for years, they’ve lived, worked, shopped, and played in the same area. They will spend money on their families, yard maintenance, and home improvements. They’re big TV fans; they watch sitcoms and sports events.”

City Center Mankato – Downtown Market Analysis -A Renaissance Underway- Fall 2014 Metropolitans “Prefer to live in older city neighborhoods. Approximately half of these households are singles who live alone or with others; 40 percent are married-couple families. One in four of the residents is aged 20–34 years. Half of the residents who are employed work in professional or managerial positions. More than 75 percent of the population aged 25 years and older have attended college or completed a degree program. The median household income is $53,486. Nearly half of the households earn extra income from interest, dividends, and rental properties. They live in an eclectic mix of single-family homes and multiunit buildings. Planning for their future, residents own shares in investment funds, contribute to IRA savings accounts, and hold large life insurance policies. These residents pursue an active, urbane lifestyle. They travel frequently for business and pleasure. Active members of their communities, they join civic clubs, volunteer for environmental causes, and work for a political party or candidate.”

Great Expectations “Young singles who live alone and married-couple families dominate the Great Expectations market. The median age is 33.1 years. Some residents are just beginning their careers or family lives. The median household income of $35,406 is lower than the US median of $50,227. Half own their homes; half rent. are not afraid to tackle smaller maintenance and remodeling projects, but they also enjoy a young and active lifestyle. They rarely travel. Focused on starting their careers, they’re not investing for their retirement years.”

Findings: City Center Mankato has a higher concentration of College Town Tapestries that other regional communities and higher than some regional college communities like St Cloud, MN. Combined with the other predominant tapestry of Great Expectations, the City Center is comprised of young residents, has a lower median household income than the national average due to enrolment in higher education and having just started their careers, there is also a lower home ownership rate, and these residences typically indulge in convenience purchases and enjoy an very active lifestyle.

Additional Research:

 Further analysis should be conducted into the details of the College Town and Great Expectation Tapestries to discover the amenities which would enhance their experience in the City Center and how best to retain these individuals as they transition out of their youthful and early adult stages in life. This could potentially be a unique way to approach enhancing our City Center and could include researching any successes of other Peer Cities (highlighted later in the report) that Figure 4: College Town Tapestry Concentration

City Center Mankato – Downtown Market Analysis -A Renaissance Underway- Fall 2014 they have had it targeting these segments of the population. (Consider: Graduate student project and combining into future Intercity Leadership Visits)

Geography and Community Context City Center Geography City Center Mankato is located in the Minnesota River Valley and confined by the bluff line to the east, the river to the northwest and west, and by streams & small bluffs to the south. As a result the City Center has a highly linier development pattern. However, such arrangements can often make it difficult to achieve critical density that generates that unique “urban vibrancy” most downtowns seek. Yet, this pattern is also highly supportive of light rail/street car transit, which has again become an important element to attract critical density all across the nation.

Figure 5: Walking & Biking Connectivity Levels

City Center Mankato – Downtown Market Analysis -A Renaissance Underway- Fall 2014 Walkability Table 2: Area Walk Scores Walkability has become a very important factor in Area Walk Score (max 100) assessing the livability of a community. City Center City of Mankato 35 Mankato has a peek Walk Score of 82 of 100. This 600 S. Front St. – City 82 means that area is “Very Walkable” and most errands Center can be accomplished on foot. This is contrary to the Intergovernmental 79 Walk Score for the city as a whole which is 35 of 100 Center – City Center and is “Car-Dependent” for most errands. Sibley Parkway – City 71 Furthermore, with the concentrated grid pattern of Center development in the City Center, people can walk Old Town – City 70 greater distances within a standard 15 minute walk. Center This can be described as having high accessibility, or Sibley Neighborhood – 51 the ability to access more services in a shorter City Center distance. To maintain and enhance accessibility, Belgrade Ave 46 density should be supported and increased and Minnesota State Univ. 44 pedestrian friendly amenities/design should be added River Hills Mall 40 Blue Earth County to increase the comfort and safety of walking and 18 biking. Justice Center

Figure 6: Walk Score & Intensity at 600 S. Front St.

City Center Mankato – Downtown Market Analysis -A Renaissance Underway- Fall 2014

Community Context The Mankato and North Mankato communities have eight principal clusters (Figure 7) of similar districts or neighborhoods. They are not necessarily official names, but are highlighted in this report due to their similarities.

Figure 7: Mankato Area Clusters

 City Center Mankato is the geographic center and birthplace for both cities. As the historic center of civic and commercial life City Center is a vibrant urban center. Defined by the bluff line to the east and the Minnesota River to the west this residential and commercial center is also the site of the original Minnesota State campus and a resurgence of new dense urban developments.  Uptown is a more auto oriented and industrial extension of the City Center. With zoning enhancements and infrastructure improvements such as a street car, Uptown could become its own epicenter combining industry, high density residential, services/shops and a pedestrian designed Riverfront Drive that still functions as a thoroughfare and compliments Tourtellotte Park Neighborhood.  Hilltop is the regional auto oriented commercial area that includes two malls, the hospital, big box stores, and residential. A recent redesign to Madison Avenue has been well received, yet the pedestrian enhancements don’t appear to have significantly increased biking or walking. The avenue includes a wide shoulder to accommodate bus rapid transit as a yet to be determined date. Such a system should link to the City Center and would create a strong multimodal connection.

City Center Mankato – Downtown Market Analysis -A Renaissance Underway- Fall 2014  College Town is defined by Minnesota State University and the 14,000+ students living near or commuting to the campus every day. This cluster lacks overall character and outside the campus lacks the livable communities that many college students prefer. A major employer besides the university is MRCI. A major potential enhancement to add a livable community element is the University Parkway Concept as outlined in the appendix of the Front Street Connectivity Plan.  West Mankato is mix of residential and recreational areas that is bisected by the Blue Earth River. This district has limited employment centers yet has key destinations of Mankato West High School, the YMCA, Land of Memories Park and Rasmussen Woods.  Lime Valley is the northern most cluster and is comprised of upper (eastern) and lower (western) sections generated by a bluff that generally runs along Riverfront Drive. The lower/western section is defined by established industrial developments. The upper/eastern section is defined by the growing residential and big box commercial sectors plus a booming newer industrial park. Though employment is not highly concentrated at the currently, the addition of major new developments will change that in the coming couple of years.  Lower North is an older and quieter residential area that is defined by the two major parks of Wheeler Park and Spring Lake Park. Recent efforts to enhance the bike friendliness are still taking hold and a pending business district plan for Belgrade Ave in the adjacent City Center district could result in this area becoming a more desirable and increasingly livable area.  Upper North is a split of residential and industrial development with some a midsized commercial strip. Community desires to see the commercial strip expand have seen limited results as the majority of commercial development occurs on the eastern side of Mankato. Even so, with Caswell Park being a major regional destination for sports tournaments this area holds growth potential.

Community Employment Centers When comparing the employment concentration of these areas we can see how employment is dispersed across the two cities and within each cluster. When assessing the top five areas of employment from census.gov, there are some patterns for types of employment based in the NAISC Industry Codes.

First is employment that is highly concentrated in City Center and not elsewhere:  Administration & Support  Public Administration

Second is employment that has a concentration in City Center and elsewhere:  Accommodation & Food Service

Finally, is employment that is mainly concentrated outside the in City Center:  Health Care and Social Service  Manufacturing Figure 8: Mankato Area Employment Centers

City Center Mankato – Downtown Market Analysis -A Renaissance Underway- Fall 2014

Figure 10: City Center Administration & Support Figure 11: City Center Healthcare & Social Services City Center employment in Administration and City Center employment in Health Care & Social Support is 12.2% of total City Center Services is 13.2% of total City Center employment. It is also a highly elevated employment. It is also an elevated concentration concentration of such employment within the of such employment within the community. community.

Figure 12: City Center Public Administration

Figure 9: City Center Accommodation & Food Service City Center employment in Public Administration City Center employment in Accommodation & is 10.7% of total City Center employment. It is also Food Service is 12.0% of total City Center a highly elevated concentration of such employment. It is also a highly elevated employment within the community. concentration of such employment within the

community.

City Center Mankato – Downtown Market Analysis -A Renaissance Underway- Fall 2014

Figure 13: City Center Manufacturing City Center employment in Manufacturing is 8.4% of total City Center employment. It is also a low concentration of such employment within the community.

Findings: City Center Mankato is a highly walkable yet confined and linier district. The City Center top three areas of employment are Administration & Support, Public Administration, Accommodation & Food Service, Health Care and Social Service, and Manufacturing with all but the last two having a higher concentration in the City Center than elsewhere in the community.

Additional Research:

 Assess the potential for how a streetcar system and rezoning on Riverfront might combine to achieve the critical density necessary for an organically vibrant City Center and Uptown. (Consider: Graduate student project or hire a specialized consultant.)

Local and Regional Economy Metropolitan Statistical Area (MSA) ECONOMY HIGHLIGHTS

The Mankato-North Mankato Metropolitan Statistical Area or MSA (comprised of Blue Earth and Nicollet Counties) has been very prosperous as measured by multiple economic metrics. These metrics include Gross Domestic Product (GDP), job growth, population growth, demographics, capital investment, and per capita income growth. This has been a result of the diverse economic base of the local economy. Key sectors include healthcare, education, metal manufacturing, and retail.

City Center Mankato – Downtown Market Analysis -A Renaissance Underway- Fall 2014 Findings:  Gross Domestic Product (GDP) – The Bureau of Economic Analysis (BEA) releases their gross domestic product figures every fall. The 2013 figures for the Mankato-North Mankato MSA showed continued growth with 0.8% total GDP growth to $4.2 billion

Since 2010, the Mankato-North Mankato MSA has let the state in GDP growth. See the table below.

MN MSA 2010-2013 GDP Growth Mankato-North Mankato 8.0% Minneapolis-Saint Paul-Bloomington 7.5% Duluth 5.8% Saint Cloud 5.7% Rochester 2.9%

Several of the detailed sub-data sets on GDP growth have not yet been released. Of the 10 sub categories that were made public, we saw an improved growth rate in 5 of them. The clear outlier, which represented a significant portion of previous growth, is Wholesale Trade. It saw a 49% growth rate from 2011-2012. The new growth rate for Wholesale Trade is not yet available.

Industry 2010 2011 2012 2013 2012- 2011- 2010- 2013 2012 2011 Growth Growth Growth Agriculture, forestry, fishing, and hunting (D) (D) (D) (D) Mining (D) (D) (D) (D) Utilities 77 82 88 (D) NA 7.32% 6.49% Construction 160 172 174 179 2.87% 1.16% 7.50% Manufacturing 664 734 732 755 3.14% -0.27% 10.54% Wholesale trade 211 206 308 (D) NA 49.51% -2.37% Retail trade 283 299 288 289 0.35% -3.68% 5.65% Transportation and warehousing 71 73 72 (D) NA -1.37% 2.82% Information 162 174 194 192 -1.03% 11.49% 7.41% Finance, insurance, real estate, rental, and 414 417 378 384 1.59% -9.35% 0.72% leasing Professional and business services 230 235 248 253 2.02% 5.53% 2.17% Educational services, health care, and social 522 539 551 566 2.72% 2.23% 3.26% assistance Arts, entertainment, recreation, 103 108 113 116 2.65% 4.63% 4.85% accommodation, and food services Other services, except government 109 110 110 113 2.73% 0.00% 0.92% Government 582 576 571 571 0.00% -0.87% -1.03%

 Job Growth – the Mankato-North Mankato MSA has led the state in percent of job growth the previous two years (2013 & 2014). In November 2014, the MSA set an all-time high with 58,097 jobs.

City Center Mankato – Downtown Market Analysis -A Renaissance Underway- Fall 2014  Demographics

The counties within our MSA have one very distinctive workforce trait. Blue Earth County has the highest percentage of 18-24 year olds out of the 87 counties in Minnesota. Nicollet County has the 13th highest. The first table below shows the counties in Minnesota with the highest percentages of 18 - 24 year olds. When viewing this information, there is a high correlation between percentage of individuals in that specific age demographic to the presence of a university or college. That is not to say all 18-24 year olds are college students, but what is important to note is this age group is new to the workforce and has yet to hit their top earning potential through education, training and experience.

The significant presence of this age group in our workforce creates opportunity for our region. It is a talent supply that has potential to work in any industry.

Naturally 18-24 year olds earn less than other age demographics and that is reflected in the average household income. However, the Mankato-North Mankato MSA has a higher income than the Duluth MSA and a comparable income to the Saint Cloud MSA. The higher cost of living is reflected in the Minneapolis-Saint Paul MSA income figures. In the Rochester MSA, the dominance of the Mayo Clinic and the associated higher paying health care sector is seen with an average household income exceeding $80,000. The second table below highlights the average household income for each of the five metropolitan areas. This middle of the road income figure shows a balance of business profitability and resident affordability.

The U.S. Census Bureau’s 2013 benchmark of our region highlights many workforce strengths and opportunities.

County Rank of 18 - 24 year Total 18 - 24 College or Geography % of Total Population olds based on percent of total year olds University population Blue Earth County, MN 11679 19.09% 1 Yes Stevens County, MN 1499 16.46% 2 Yes Winona County, MN 7470 15.84% 3 Yes Clay County, MN 6912 12.44% 4 Yes Beltrami County, MN 5270 12.27% 5 Yes Stearns County, MN 17314 12.08% 6 Yes Scott County, MN 21139 11.02% 7 No Ramsey County, MN 51443 10.26% 8 Yes Benton County, MN 3779 9.90% 9 No

City Center Mankato – Downtown Market Analysis -A Renaissance Underway- Fall 2014 Mankato - Minneapolis - Rochester St. Cloud Duluth Metro North Mankato St. Paul Metro Metro Metro Metro Average Household $59,642 $65,950 $85,965 $80,284 $66,045 Income

 Capital Investment – 104 commercial and industrial building projects, $331 million in 2014 swelling our 3 year total to $591 million.

 Per Capita Income - From 2010 to 2013 the Mankato – North Mankato MSA experienced the highest growth rate of per capita personal income among all Minnesota based MSA’s at 12.35%. This gain represents an increase in per capita personal income of $4,408.

Area 2010 2013 % growth 10-13 Mankato-North Mankato, MN MSA $35,683 $40,091 12.35 % Duluth, MN-WI MSA $35,153 $39,391 12.06 % St. Cloud, MN MSA $34,167 $38,236 11.91 % Minneapolis-St. Paul- MN MSA $46,016 $51,183 11.23 % Rochester, MN MSA $42,771 $45,231 5.75 %

MSA ACCOLADES

 #3 in the Nation on Forbes 2014 Best Small Places for Business and Careers – Among 184 metropolitans having populations less than 250,000 (up from 10th in 2013, 11th in 2012 and 25th in 2011). Ranking 20th in Education, 27th in Cost of Doing Business and 59th in Job Growth.  Most Affordable College Town in Minnesota –Mankato ranks most affordable college city in Minnesota and #36 in the nation, according to a Great Value Colleges 2014 release  3rd in the Nation for Affordable Healthcare – 3rd in the nation on livability.com's 2014 Top 10 Cities for Affordable Health Care.  #19 in the Nation for top College Towns – In 2014 the Mankato-North Mankato Metropolitan Statistical Area was ranked #19 in the nation for top college towns with under 250,000 residents by The American Institute for Economic Research  #2 Best Place in Minnesota for Young Families – The City of North Mankato was ranked #2 best place in MN for Young Families in 2014 by nerdwallet.com  #7 Dreamtown in the Nation – Bizjournals.com ranked Greater Mankato number seven out of 140 on it's national list of Dreamtowns in 2008. A dreamtown is a "small town that offers the best quality of life without metropolitan hassles."

City Center Mankato – Downtown Market Analysis -A Renaissance Underway- Fall 2014  8th in the Nation for Work - Life Balance – According to nerdwallet.com. Balance is based on hours worked per week, daily commuting time and median earnings.  Top Marathon in Minnesota worth Traveling for – Mankato Marathon has been rated the top marathon to travel to in Minnesota by Trip Advisor.  Top Community for Young People – On America's Promise top 100 communities for young people four years in a row.  On AARP Magazine's Cities to Watch List – For being ahead of the curve in providing services to empty nesters, active retirees and everyone in between.  #5 Safest Community in Minnesota – The City of North Mankato was ranked 5th safest city in the state by movoto.com in 2014  Bronze level Bicycle Friendly Community – Greater Mankato has been awarded the Bronze ranking for bicycle friendliness by The League of American Bicyclists  #4 Best Outdoor Venue in Minnesota - Awarded to Vetter Stone Amphitheater in Riverfront Park from the Star Tribune in 2014.

SOUTH CENTRAL MN HIGHLIGHTS

Findings: South Central Minnesota (a nine county region) as a whole has had steady population growth. The population for the entire region was 231,622 in 2013, a 4% increase since 2000. The Mankato-N. Mankato MSA had a 2012 population of 98,560, a 15% increase since 2000. This shows that the population growth is happening in the MSA, located in the center of the region. The region has a strong workforce, with a healthy balance of employees available and individuals employed. With employers reporting high productivity, motivation and low absenteeism, the quality of the workforce is an important reason why businesses locate in South Central Minnesota.

TALENT/HIGHER EDUCATION Business, educational, and community leaders in the greater Mankato region have a shared understanding and appreciation of how important talent is to our economic success. Greater Mankato Growth’s Talent Demand and Supply Report highlights the supply of talent that have completed advanced education beyond high school in our region compared to the workforce needs.

This was a collaborative effort of Bethany Lutheran College, Gustavus Adolphus College, Minnesota State University-Mankato, Rasmussen College and South Central College for providing their college graduate data. Along with MN DEED (Department of Employment and Economic Development) and South Central Workforce Council labor market data.

City Center Mankato – Downtown Market Analysis -A Renaissance Underway- Fall 2014 Findings: Shortages: For job seekers the highest potential for employment are in the fields of Engineering, manufacturing, and technology related careers as well as healthcare support roles and transportation roles. These are areas where projected demand either greatly exceeds supply and or is equal to.

Surplus: On the flip side the report also highlights those cluster occupational areas where there is a surplus of talent compared to projected demand. – within the career fields of business, business management and administration as well as roles in human services such as Elementary education and social workers it appears we have excess talent compared to demand.

Business/Property Owners Survey

**no data submitted by researcher**

Findings:

Consumer Survey **See appendix for PowerPoint presentation entitled “City of Mankato Downtown Market Analysis: Enhancing a smart city” by Benjamin Effah, Prawan Amataya, and Chima Obidiegwu.**

Findings: The Survey highlights the demographic characteristics of consumers of City Center businesses. Respondants were primarily 25-44 in age, residents of the community, married, and employed full-time.

Visitor Intercept Survey Undertaking a Visitor Intercept Survey allowed us to include visitors to the City Center area in our research. To do this four separate community events were attended and survey responses were requested to learn some basic visitor demographics and information on their visit to the City Center.

The events attended were:

 Mankato River Ramble  Luke Bryant Concert  Hockey Night in the City Center  Mankato Marathon

Ages: 44.4% of visitors were between the ages of 25 – 44 while 39.6% between the ages of 45-64.

Stay Duration: Over 70% were on a day-trip to the City Center and that another 15% were staying with family or friends

City Center Mankato – Downtown Market Analysis -A Renaissance Underway- Fall 2014 Visitor Spending: While going out for food and drinks (53.6%) ranked highest for other activities, sporting activities (41.4%) and family activities (24.1%) came in with respectively high numbers as well. The $50/per person spending limit still holds firm, while 33.8% reported to be spending up to $100. (This dollar amount is without the cost of lodging or event included.)

Marketing and Messaging: Event marketing data proved to be the most surprising. When asked: “How did you hear about this event” 34.9% stated family and friends while 31.7% were past participants and 24.1% were targeted through social media. When asked at the River Ramble 26.7% stated from the Twin Cities Classic, the event co-operator.

Findings: The direct marketing by similar events to cross promote them both seems to be highly successful. Furthermore, outdoor/athletic enthusiasts will commonly participate in multiple events in a year so securing more partnerships built around the outdoors and recreation would help to cross-promote the City Centers emerging active lifestyle.

Additional Research:

 Future surveys could take a closer look at smaller age ranges as well as the ages of any other people visiting with the surveyed. (Consider: Graduate student or intern projects)

Peer City Comparisons In order to assess our City Center on a state, regional and national scale we selected nine comparable communities’ downtowns including:

Table 3: Peer Comparison Cities Statewide: St. Cloud, MN Rochester, MN Duluth, MN

Regional: Ames, IA Eau Claire, WI Manhattan, KS

National: Missoula, MT Fort Collins, CO Corvallis, OR

City Center Mankato – Downtown Market Analysis -A Renaissance Underway- Fall 2014 Comparisons:

The City Center is the largest Table 4: Top 3 Comparisons of all nine downtowns and is Geographic Area Population Median Income likely a result of the City Top 3 City Center Mankato, MN 1.69 6,871 $35,130 Center area being inclusive of St. Cloud, MN .24 557 $11,306 large residential areas. The Rochester, MN .34 1,637 $23,769 other communities likely Duluth, MN .51 1,858 $13,456 describe their “downtown” as Ames, IA .14 150 $31,681 principally the Market Center Eau Claire, WI .91 3,472 $20,482 or Central Business District. Manhattan, KS .18 60 $29,292 This could result in Missoula, MT .18 3,589 $16,543 disproportionate Fort Collins, CO 1.19 3,596 $35,324 comparisons. Corvallis, OR .23 663 $25,640 The City Center is most similar Average .56 2,245 $24,262 to Fort Collins, CO which, along with the City Center, is the only downtown to rank in the Top 3 in all categories (Area, Population & Median Income). The City Center also has some resemblance to the geographic area of downtown Eau Claire, WI, the population of Missoula, MT, and the median income of Ames, IA.

City Center Mankato – Downtown Market Analysis -A Renaissance Underway- Fall 2014 Retail Market Potential vs National Averages Key findings from the ESRI Retail Market Potential analysis are highlighted below.

Apparel Spent Ad Convenience Store Regular Exercise-Club/Home City Center: Equal/Above City Center: Above City Center: Above Minnesota: Below Minnesota: Equal/Below Minnesota: Below Regional: Above Regional: Equal/Above Regional: Above National: Above National: Mixed National: Above

Automobile Owned/Leased Attended Live Theater-12mo Visited Doctor-12mo City Center: Equal City Center: Below City Center: Below Minnesota: Below Minnesota: Mixed Minnesota: Equal/Above Regional: Equal Regional: Below Regional: Below National: Equal National: Equal/Above National: Below

Computer Ownership Attended Bar/Club-12mo Purchased Household Products City Center: Above City Center: Above City Center: Equal/Above Minnesota: Below Minnesota: Below Minnesota: Below Regional: Above Regional: Above Regional: Equal/Above National: Above National: Above National: Equal/Above

Computer Value Download Internet Movie Frequent a Family Restaurant City Center: Above City Center: Far Above City Center: Equal/Below Minnesota: Below Minnesota: Below Minnesota: Below Regional: Above Regional: Far Above Regional: Equal/Below National: Above National: Far Above National: Equal/Below

Cell Phone Ownership Have Home Mortgage-1st Travel Frequency & Expense City Center: Equal/Above City Center: Far Below City Center: Below Minnesota: Below Minnesota: Below Minnesota: Mixed Regional: Above Regional: Far Below Regional: Below National: Equal/Above National: Far Below National: Mixed

Convenience Store Visits Own Stocks/Bonds/Mutual Fund Read Digital vs Print Newspaper City Center: Above City Center: Below City Center: Above Minnesota: Below Minnesota: Above Minnesota: Below Regional: Above Regional: Below Regional: Above National: Above National: Below National: Above

Findings: On average, City Center Mankato was more comparable to other Regional or National Comparable Cities’ downtowns and less like Minnesota Comparable Cities’ downtowns. The trends show that the City Center is more tech savvy, travels less, is more physically/health conscience but doesn’t visit the doctor, has less long term investments, goes out for entertainment more than for culture, and spends

City Center Mankato – Downtown Market Analysis -A Renaissance Underway- Fall 2014 more on apparel and convenience items. This is likely a result of the younger age of City Center residents, which are frequently attending college.

Additional Research:

 Additional refinements should be undertaken to ensure a more accurate comparison to other downtowns that do not include residential districts in their defined “downtown”. (Consider: intern or undergraduate project)  Assessments of how the Tapestry Segments vary across the other downtowns might shead light on why City Center is less like Minnesota downtowns and more like Regional & National downtowns. (Consider: intern or undergraduate project)

OPPORTUNITIES BY SECTOR: Retail and Services The survey results indicated a general lack for retail and services in the City Center in spite of being a highly populated area with thousands of daytime employees entering the district.

Opportunities: In order to capitalize on the lack of retail and services, efforts should be formed to attract new entrepreneurs or relocating business. One potential initiative is the OPEN Initiative highlighted below.

OPEN Initiative: Opportunity Partners for Entrepreneurial Neighbors (OPEN) is a concept initiative drafted by City Center staff and which focuses on attracting and enhancing City Center retail and service businesses. Five key steps in this initiative combine to attract entrepreneurs, support existing business, enhance the built environment and generate customer traffic. This concept is based on a Dayton, OH initiative to attract pop-up stores to vacant buildings. Table 5: OPEN Initiative Key Steps When adapted to include support for existing businesses, training to help 1. Urban Pop-up Stores (OPEN-UPS) ensure long-term success and a 2. Significantly Impactful Training & Education (OPEN-SITE) greater focus on customer attraction 3. Networking, Engagement & Webinars (OPEN-NEW) the new OPEN initiative can become a 4. Visually Improve Every Window (OPEN-VIEW) catalyst for enhancing all businesses 5. Festive Urban Neighborhood (OPEN-FUN) while attracting new ones.

Findings: A lack of retail and services in the City Center is preventing the critical mass necessary to become a vibrant retail and service district. Sustained coop marketing campaigns might help change perceptions but efforts must be taken to attract new business or expand existing businesses. One such business and customer attraction initiative is the OPEN Initiative, a concept from the City Center Partnership.

Additional Research:

City Center Mankato – Downtown Market Analysis -A Renaissance Underway- Fall 2014  Assess funding opportunities for the OPEN initiative. (Consider: a joint City of Mankato, City of North Mankato and City Center Partnership taskforce to assess funding. Other partners should determined.)

Restaurant and Culinary Though people frequent the City Center weekly or monthly for restaurants, feedback obtained from respondents suggest desires improvements in the type of dining options, including a desire for more:

 Family/Casual Dining  Upscale Dining  Ethnic Cuisine  Organic Foods

Findings: Efforts to enhance the culinary experience in the City Center along with diversifying culinary options could prove to attract more visitors and be economically sustainable.

Additional Research:

 Research Peer Cities any successful campaigns for attracting new culinary establishments and duplicate similar efforts in the City Center. (Consider: Graduate student project or intern.)

Arts and Entertainment Survey respondents indicated they frequent the City Center for Arts or Cultural activities on a monthly (40%) or annual (39%) basis. Furthermore, they indicated that “Historical Character” is very or somewhat important with only 6% saying such improvements are not important.

A current City Center Partnership planning initiative is underway to learn how the community can proactively cultivate the existing City Center Arts & Historic District into an authentic and sustainable cultural district. A dedicated and vibrant cultural district is a key aspect of highly cultural communities. By concentrating a high density of cultural activities, services, events, businesses and even residences, in a compact district, it can become a powerful economic engine of its own. Furthermore, according to the Minnesota State Arts Board, arts and culture have an economic impact in Minnesota of over $1 billion annually with more than 30,000 artists in the state and more than 1,600 arts organizations.

Also, respondents will frequently visit the City Center for “Nightlife” and “Music” generally on a monthly basis.

Findings: Direct and purposeful cultivation of the Entertainment District and the adjacent Arts & Historic District will yield significant results. Combined with pedestrian enhancements, unique shops, and more family friendly activities, the City Center would be poised to become a premier destination in the Upper

City Center Mankato – Downtown Market Analysis -A Renaissance Underway- Fall 2014 Midwest. As a result, the pending Arts & Historic District Plan should take on a new level of importance and similar planning initiatives should occur to direct the growth of the Entertainment District.

Additional Research:

 Research Peer Cities for initiatives to enhance an entertainment/nightlife district and work to replicate similar results in the City Center. (Consider: Graduate student project or hire a specialized consultant.) Lodging

Findings:

Office Space

Findings:

Residential/Housing Survey respondents noted that there is a preference of housing within the City Center, that would include more apartments above commercial buildings as well as mid-high rise condominiums.

Findings: Survey respondents noted that there is a preference of housing within the City Center, that would include more apartments above commercial buildings as well as mid-high rise condominiums.

FUTURE PLANNING & DEVELOPMENT IDEAS: Building Usage Survey respondents’ third highest requested City Center improvement was more “Unique Shops” (67% very important) and, overwhelmingly, the number one improvement ranked as not important was “More Franchises” (63% not important).

Findings: New development and redevelopments should seek to build ground level spaces for unique shops and attempt to find locally owned tenants before franchises.

Additional Research:

 Research national best practices for attracting unique shops and attracting supportive developments to house those shops.

City Center Mankato – Downtown Market Analysis -A Renaissance Underway- Fall 2014

Marketing, Imaging and Branding The ease and convenience of walking and biking in the City Center were ranked by most survey respondents to be poor, in spite of the area having a high walk score. General safety and convenience of walking and biking is questionable per the survey respondents. Respondents desired improvements to “Public Improvements (i.e. streets, sidewalks, green-space)” (71% very important), which was also the number one desired improvement in the City Center. The second desired improvement was to have “More Events” (68% very important). Tied at third most requested City Center improvement was “More Unique Shops” (67% very important) and “Family Friendliness” (67% very important),

Findings: Maintaining the highest possible standards in walking and bike friendliness is critical for the future success of the City Center. Also, marketing efforts should be undertaken by the City Center Partnership in order to counter the negative perception of pedestrian friendliness in spite of having a high Walk Score. Enhanced pedestrian and bike amenities such as bike parking, benches, greening, lighting and even security patrols could improve users perceptions. Furthermore, marketing efforts should also be undertaken to highlight the City Center events, unique shops and family friendliness.

Common reasons for visiting the City Center and their frequency of occurrence should be taken into consideration when engaging in marketing initiatives.

Common reasons for frequenting the City Center Daily Weekly Monthly Annually Work Groceries Nightlife Lodging Live Shops Music Sports Events Restaurants Services Music Government Arts Services

Additional Research:

 Further analysis should be conducted to understand peoples perceptions of why the City Center is not pedestrian friendly and actions should be taken to improve conditions related to those perceptions. (Consider: Graduate student projects or hired consultants)

Business Retention/Expansion Survey results indicated North Mankato/Belgrade Avenue lacks sufficient retail and services.

Findings:

City Center Mankato – Downtown Market Analysis -A Renaissance Underway- Fall 2014 Entrepreneurship Support (See section: Opportunities by Sector, Retail and Services, OPEN Initiative)

Findings:

Business Recruitment

Findings:

Niche Development

Findings:

Additional Research:

 Consider adding a future survey question about “desired innovative business ideas or niche developments” to the Consumer Survey to get public input.

Benchmarking

City Center Mankato – Downtown Market Analysis -A Renaissance Underway- Fall 2014

APPENDIX

PowerPoint Summary Presentation of City Center Market Analysis (43 pages, summary presentation of this document)

Market Trade Area Map (1 page, map)

Mankato Area Employment Centers – U.S. Census, On The Map (1 page, map)

Tapestry Segmentation – College Towns – By ESRI (4 pages, summary of dominant tapestry)

Walk Scores (6 pages, maps and analysis of the walkability of portions of the City Center)

Retail Market Potential (5 pages, comparison of downtowns in terms of different sectors of retail)

Retail Marketplace Profile (1 page, comparison analysis of downtowns’ existing retail capacity)

Focus Group Notes (3 pages, notes from 3 focus group conversations

Benchmarking Table and City Center Business Toolbox Chart (2 pages, templates)

Owner Survey Data (6 pages, survey results of local business owners)

Preliminary City Center Market Research – Urban and Regional Studies Institute Capstone Project – Minnesota State University Mankato (42 pages, analysis of the City Center completed by students of the URSI program)

PowerPoint – Preliminary City Center Market Research – Urban and Regional Studies Institute Capstone Project – Minnesota State University Mankato (28 pages, summary presentation of URSI students report)

Draft Version - for review, comment & revision by CCP BDR- Market Analysis Subcommittee Acknowledgements

• Report Compiled & Written by: Eric T. Harriman, Executive Director, City Center Partnership

• Project & Research Coordination: Kelly Henry, Project Assistant, City Center Partnership

Draft Version - for review, comment & revision by CCP BDR- Market Analysis Subcommittee Acknowledgements

Project Steering Committee: • Andrew Willaert, Committee Chair • Cathy Brennan, Brennan Companies • Dain Fisher, Coldwell Banker Fisher Group • Tom Frederick Jr., Pub 500 • Mary McClure, McClure Agency • Julie Nelson, Small Business Development Ctr • Paul Osdoba, Profinium • Kristin Prososki, City of Mankato • Kyle Smith, Tailwind Group • Kevin Velasquez, Blethen, Gage & Krause • Jim Whitlock, Brickhouse Graphics

Draft Version - for review, comment & revision by CCP BDR- Market Analysis Subcommittee Acknowledgements

Data Collection Assistance: • Greater Mankato Growth: John Considine, Business Development Resource Manager • Minnesota State University, Mankato: Benjamin Oppong Effah, Urban & Regional Studies Graduate Student Prawan Amataya, Urban & Regional Studies Graduate Student Chima Obidiegwu, Urban & Regional Studies Graduate Student • With Faculty Advisement by: Dr. Miriam Porter, Minnesota State Mankato, Urban & Regional Studies Institute Dr. Russell Fricano, Minnesota State Mankato, Urban & Regional Studies Institute

Draft Version - for review, comment & revision by CCP BDR- Market Analysis Subcommittee Acknowledgements

• Creative & Graphic Design provided by: Red Door Creative

• Community Support: A special thanks to all the community members and visitors who provided input and engaged in this process.

Draft Version - for review, comment & revision by CCP BDR- Market Analysis Subcommittee Purpose and Goals of the Study

• This analysis is intended to provide the City Center business and community leaders information that can assist in guiding development. Used properly, the market analysis should help with business development, retention, attraction and expansion. The plan provides an understanding of the general City Center characteristics that can be used by businesses and should be combined with other sets of information before making fundamental changes to any business. • If should be noted that this market analysis in an inaugural effort to collect relevant market analysis information. In this first year, an effort was made to collect substantial amounts of information for Demographics/Characteristics, Surveys/Focus Groups, and Comparative Cities to establish a baseline understanding that can be added to in consecutive years. By focusing on one area annually, the data is never substantially out dated and collected infrequently enough so as to limit unnecessary work.

Draft Version - for review, comment & revision by CCP BDR- Market Analysis Subcommittee UNDERSTANDING THE MARKET:

Draft Version - for review, comment & revision by CCP BDR- Market Analysis Subcommittee Mankato Destination Trade Area

Draft Version - for review, comment & revision by CCP BDR- Market Analysis Subcommittee City Center Convenience Trade Area

Draft Version - for review, comment & revision by CCP BDR- Market Analysis Subcommittee Trade Area

Findings • By using the Mankato Destination Trade Area businesses can better align customer attraction efforts or research their particular customers. In using this type of trade area businesses, that are not a typical destination for major purchases, should align marketing tactics that capitalize on or enhance the experience of visitors entering the community for other reasons.

Draft Version - for review, comment & revision by CCP BDR- Market Analysis Subcommittee City Center Tapestry Segmentation

Figure 3: City Center Tapestry Map

Draft Version - for review, comment & revision by CCP BDR- Market Analysis Subcommittee City Center Tapestry Segmentation

Findings • City Center Mankato has a higher concentration of College Town Tapestries that other regional communities and higher than some regional college communities like St Cloud, MN. Combined with the other predominant tapestry of Great Expectations, the City Center is comprised of young residents, has a lower median household income than the national average due to enrolment in higher education and having just started their careers, there is also a lower home ownership rate, and these residences typically indulge in convenience purchases and enjoy an very active lifestyle

Draft Version - for review, comment & revision by CCP BDR- Market Analysis Subcommittee Geography and Community Context Walkability

Draft Version - for review, comment & revision by CCP BDR- Market Analysis Subcommittee Geography and Community Context Community Clusters

Draft Version - for review, comment & revision by CCP BDR- Market Analysis Subcommittee Geography and Community Context Community Employment Centers

Draft Version - for review, comment & revision by CCP BDR- Market Analysis Subcommittee Geography and Community Context Community Employment Centers Findings • City Center Mankato is a highly walkable yet confined and linier district. The City Center top three areas of employment are Administration & Support, Public Administration, Accommodation & Food Service, Health Care and Social Service, and Manufacturing with all but the last two having a higher concentration in the City Center than elsewhere in the community.

Draft Version - for review, comment & revision by CCP BDR- Market Analysis Subcommittee Local and Regional Economy - MSA ECONOMY HIGHLIGHTS • Comprised of Blue Earth and Nicollet Counties • GDP Growth – Leads state: 8% from 2010-2013 • Job Growth – Led state in 2013 & 2014 – All-time high: 58,097 • Demographics – Highest rate of 18-24 year olds in state • Capital Investment – 3 year total (2012-2014) of $591 million • Per Capita Income – Led state from 2010-2013 with 12.35% growth

Draft Version - for review, comment & revision by CCP BDR- Market Analysis Subcommittee Local and Regional Economy -MSA ACCOLADES

• #3 in the Nation on Forbes 2014 Best Small Places for Business and Careers – Among 184 metropolitans having populations less than 250,000 (up from 10th in 2013, 11th in 2012 and 25th in 2011). Ranking 20th in Education, 27th in Cost of Doing Business and 59th in Job Growth. • Most Affordable College Town in Minnesota –Mankato ranks most affordable college city in Minnesota and #36 in the nation, according to a Great Value Colleges 2014 release • 3rd in the Nation for Affordable Healthcare – 3rd in the nation on livability.com's 2014 Top 10 Cities for Affordable Health Care. • #19 in the Nation for top College Towns – In 2014 the Mankato-North Mankato Metropolitan Statistical Area was ranked #19 in the nation for top college towns with under 250,000 residents by The American Institute for Economic Research • …and many more

Draft Version - for review, comment & revision by CCP BDR- Market Analysis Subcommittee Local and Regional Economy - SOUTHERN MN ECONOMY HIGHLIGHTS South Central Minnesota as a whole has had steady population growth. The population for the entire region was 231,622 in 2013, a 4% increase since 2000. The Mankato-N. Mankato MSA had a 2012 population of 98,560, a 15% increase since 2000. The area has a strong workforce, with a healthy balance of employees available and individuals employed. With employers reporting high productivity, motivation and low absenteeism, the quality of the workforce is an important reason why businesses locate in South Central Minnesota.

Draft Version - for review, comment & revision by CCP BDR- Market Analysis Subcommittee Local and Regional Economy - TALENT/HIGHER EDUCATION • Shortages: For job seekers the highest potential for employment are in the fields of Engineering, manufacturing, and technology related careers as well as healthcare support roles and transportation roles. These are areas where projected demand either greatly exceeds supply and or is equal to. • Surplus: On the flip side the report also highlights those cluster occupational areas where there is a surplus of talent compared to projected demand. – within the career fields of business, business management and administration as well as roles in human services such as Elementary education and social workers it appears we have excess talent compared to demand.

Draft Version - for review, comment & revision by CCP BDR- Market Analysis Subcommittee Business/Property Owners Survey

**no data submitted by researcher**

Draft Version - for review, comment & revision by CCP BDR- Market Analysis Subcommittee Consumer Survey

**no data submitted by researcher**

Draft Version - for review, comment & revision by CCP BDR- Market Analysis Subcommittee Visitor Intercept Survey

Undertaking a Visitor Intercept Survey allowed us to include visitors to the City Center area in our research. To do this four separate community events were attended and survey responses were requested to learn some basic visitor demographics and information on their visit to the City Center. • The events attended were: • Mankato River Ramble • Luke Bryant Concert • Hockey Night in the City Center • Mankato Marathon

Draft Version - for review, comment & revision by CCP BDR- Market Analysis Subcommittee Visitor Intercept Survey

Findings • The direct marketing by similar events to cross promote them both seems to be highly successful. Furthermore, outdoor/athletic enthusiasts will commonly participate in multiple events in a year so securing more partnerships built around the outdoors and recreation would help to cross-promote the City Centers emerging active lifestyle.

Draft Version - for review, comment & revision by CCP BDR- Market Analysis Subcommittee Peer City Comparisons

• In order to assess our City Center on a state, regional and national scale we selected nine comparable communities’ downtowns

Draft Version - for review, comment & revision by CCP BDR- Market Analysis Subcommittee Peer City Comparisons

Findings: • On average, City Center Mankato was more comparable to other Regional or National Comparable Cities’ downtowns and less like Minnesota Comparable Cities’ downtowns. The trends show that the City Center is more tech savvy, travels less, is more physically/health conscience but doesn’t visit the doctor, has less long term investments, goes out for entertainment more than for culture, and spends more on apparel and convenience items. This is likely a result of the younger age of City Center residents, which are frequently attending college

Draft Version - for review, comment & revision by CCP BDR- Market Analysis Subcommittee OPPORTUNITIES BY SECTOR

Retail and Services • The survey results indicated a general lack for retail and services in the City Center in spite of being a highly populated area with thousands of daytime employees entering the district. Findings: • A lack of retail and services in the City Center is preventing the critical mass necessary to become a vibrant retail and service district. Sustained coop marketing campaigns might help change perceptions but efforts must be taken to attract new business or expand existing businesses. One such business and customer attraction initiative is the OPEN Initiative, a concept from the City Center Partnership.

Draft Version - for review, comment & revision by CCP BDR- Market Analysis Subcommittee OPPORTUNITIES BY SECTOR

Restaurant and Culinary • Though people frequent the City Center weekly or monthly for restaurants, feedback obtained from respondents suggest desires improvements in the type of dining options, including a desire for more: • Family/Casual Dining • Upscale Dining • Ethnic Cuisine • Organic Foods

Findings: • Efforts to enhance the culinary experience in the City Center along with diversifying culinary options could prove to attract more visitors and be economically sustainable.

Draft Version - for review, comment & revision by CCP BDR- Market Analysis Subcommittee OPPORTUNITIES BY SECTOR Arts and Entertainment • With a $1 billion economic impact in Minnesota, survey respondents indicated they frequent the City Center for Arts or Cultural activities on a monthly (40%) or annual (39%) basis. Furthermore, they indicated that “Historical Character” is very or somewhat important with only 6% saying such improvements are not important. Findings: • Direct and purposeful cultivation of the Entertainment District and the adjacent Arts & Historic District will yield significant results. Combined with pedestrian enhancements, unique shops, and more family friendly activities, the City Center would be poised to become a premier destination in the Upper Midwest. As a result, the pending Arts & Historic District Plan should take on a new level of importance and similar planning initiatives should occur to direct the growth of the Entertainment District. Draft Version - for review, comment & revision by CCP BDR- Market Analysis Subcommittee OPPORTUNITIES BY SECTOR

Lodging

Not finished

Draft Version - for review, comment & revision by CCP BDR- Market Analysis Subcommittee OPPORTUNITIES BY SECTOR

Office Space

Not finished

Draft Version - for review, comment & revision by CCP BDR- Market Analysis Subcommittee OPPORTUNITIES BY SECTOR

Residential/Housing • Survey respondents noted that housing within the City Center is concerned, the survey results make it clear that provisions for more apartments above commercial buildings as well as mid-high rise condominiums are desired.