trf economic strategy 1a

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Economic Development Strategy FY 2014 Coming together is a beginning; keeping together is progress; working together is success. – Henry Ford Pennington County Edwin Dale Hahn Tel ((218) 686-3970 [email protected] 504 Arnold Avenue South Thief River Falls, MN 56701 Disclaimer: This document is a proof and is by no means comprehensive. All forward looking statements are projections and not matter of fact. The views and opinions expressed are the author’s and are not representative of Jobs, Inc., the City of Thief River Falls, or Pennington County.

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Page 1: TRF Economic Strategy 1a

Economic Development Strategy FY 2014

Coming together is a beginning; keeping together is progress;

working together is success. – Henry Ford

Pennington County

Edwin Dale Hahn Tel ((218) 686-3970 [email protected]

504 Arnold Avenue South Thief River Falls, MN 56701

Disclaimer: This document is a proof and is by no means comprehensive. All forward looking statements are projections and not matter

of fact. The views and opinions expressed are the author’s and are not representative of Jobs, Inc., the City of Thief River Falls, or

Pennington County.

Page 2: TRF Economic Strategy 1a

Table of Contents

Contents

Development Summary ________________________________________________________ 1

Economic Mapping ___________________________________________________________ 2

Workforce Housing ___________________________________________________________ 3

NCTC UAS Program __________________________________________________________ 4

UAS Industry ________________________________________________________________ 5

Regional Airport ______________________________________________________________ 6

Gilbert Industrial Park _________________________________________________________ 7

New Sanford Medical Site ______________________________________________________ 8

Downtown Redevelopment and Rehab ___________________________________________ 9

Key Contacts _______________________________________________________________ 10

Community Data ____________________________________________________________ 11

Population Data and Trends ___________________________________________________ 12

Population by Age Trends: 2000 to 2010 _________________________________________ 13

Population Projections _______________________________________________________ 14

Household Data and Trends ___________________________________________________ 15

Household by Age Trends: 2000 to 2010 _________________________________________ 16

Average Household Size ______________________________________________________ 17

Household Projections _______________________________________________________ 18

Alternative Projection Based on Job Growth ______________________________________ 19

Households by Type _______________________________________________________ 20

2010 Income Data ___________________________________________________________ 21

Household Income Distribution 2010 ____________________________________________ 22

Major Area Employers ________________________________________________________ 23

Pennington County Labor Force Data ___________________________________________ 24

Employment and Wages by Industry ____________________________________________ 25

Average Employment & Wages for Market Area____________________________________ 26

Commuting Patterns of Area Workers ___________________________________________ 27

References ________________________________________________________________ 28

Contact Information __________________________________________________________ 29

Page 3: TRF Economic Strategy 1a

Pg. 01

Development Summary

Development Summary

Strategic Highlights

This economic strategy is driven by three primary initiatives:

1. Attract and cultivate new and emerging industries.

2. Create housing and physical business infrastructure for current and future demand.

3. Maintain existing business health and community satisfaction.

Current Economic Conditions

Pennington County and Thief River Falls present these major economic assets:

Digi-Key, 6th largest electronics component distributor in the world, $1.5B annual sales, 2,800

employees.1

Arctic Cat, 1 of only 2 U.S. ATV and Snowmobile manufacturers, $670M annual sales, 1,300

employees.2

Sanford Health, new $60M Medical Center, 550 employees and support staff, 180 acres for

future development.3

Northland Community and Technical College, the Nation’s 1st public UAS education program,

UAS is projected to create 100,000 new jobs and be an $82B industry by 2025.4

Thief River Falls Regional Airport, ships 3 million packages per year, 900 acres for future

development.5

Thief River Falls has an unemployment rate of 4.2% (June 2012).6

Positioning

The hub for Pennington County, Thief River Falls is a regional center for commerce, education,

health, government and transportation in Northwest Minnesota.

Looking Ahead

A very low crime rate, excellent school system and positive economic outlook makes

Pennington County and Thief River Falls poised for workforce growth.

“A very low crime

rate, excellent

school system

and positive

economic outlook

makes

Pennington

County and Thief

River Falls poised

for workforce

growth.”

Page 4: TRF Economic Strategy 1a

Pg. 02

Economic Mapping

Economic Mapping

Brief

Included for each proposal is an Economic Map which visually summarizes the relationship

between community support, financial commitment, risk, reward, and time.

Support

Described as Negative, Neutral or Positive based on historical community response and

atmosphere.

Investment

Defined as Small, Medium or Large relative to the financial commitment the community must

make.

Risk

Characterized as Low, Medium or High related to potential for failure.

Reward

Characterized as Low, Medium or High related to potential for gains.

Time

Defined as Short, Medium or Long relative to how long the proposal will take to mature.

Support

Investment

Risk

Reward

Time

Economic Map

Page 5: TRF Economic Strategy 1a

Pg. 03

Workforce Housing

Workforce Housing

Positioning

Major employers in the community have experienced consistent growth the past 5 years. The

rate of job growth has exceed the rate of development for housing, resulting in a shortage for

the median workforce demographic. Digi-Key has stated its business is coupled to housing and

the shortage is affecting Digi-Key’s growth. New workforce housing must occur in order to

retain major employers and sustain the community.

Current Assets

As of late, there has been a focused effort to fill the housing need by the City and local

developers. Several housing projects are in motion and a number will mature in 2015. The

good health of major employers provides a relatively stable current local economy, which

developers may find attractive. Regional, Statewide and Nationwide press has created

exposure to developers interested in new construction and rehab projects.

Potential Threats

1. Major employer departure or downsizing.

2. Community resistance to projects (NIMBY).

3. Lengthy process of government action/funding.

4. Developers fearing financial risk/instability in the community.

FY2014 Targets

1. Secure City ownership of 1 property for multi or single family housing.

2. Gain approval from City Council to build infrastructure for 1 housing development.

3. Apply for FY2014 FHLB and MN Housing funding programs.

4. Reach out to and establish relationships with local, regional, state, and nationwide

housing developers and funders. Additional housing

is a priority to meet

the demand for new

employees and

growing local

business.

Support

Investment

RiskReward

Time

Housing

Page 6: TRF Economic Strategy 1a

Pg. 04

NCTC UAS Program

NCTC UAS Program

Positioning

Northland Community and Technical College is a literal “Pioneer” in Unmanned Aerial Systems

education. The partnership between the community and NCTC is to be cultivated for mutual

future growth.

Current Assets

NCTC has established the nation’s first public UAS maintenance program and is miles ahead

of other schools in this field of study. Namely in Geospatial Information & Imagery, NCTC

recently received $10M in funding to grow this program. In 2015 a new, 20,600 sqft. facility is

planned for the aviation program with $6M in project funding from the State of MN.

Potential Threats

1. Closure or relocation of NCTC UAS program.

2. Competition from other UAS Schools (Lake Superior College).

3. Insufficient NCTC student enrollment and reduced MNSCU funding.

FY2014 Targets

1. Build relationship between community and NCTC.

2. Re-energize community oversight committee.

3. Improve communication with NCTC with structured monthly meetings.

A student executes maintence on an aircraft engine in one of NCTC's facilites. The college's aviation facilities total 86,000 square feet.

Support

InvestmentRisk

Reward

Time

UAS Education

Page 7: TRF Economic Strategy 1a

Pg. 05

UAS Industry

UAS Industry

Positioning

The Unmanned Aerial Systems industry is projected to grow into an $82.1 billion industry

between 2015 and 2025. By 2025, total job creation is estimated to be at 103,776 new

positions.4 Pennington County and Thief River falls are in a position to capitalize on this

growth.

Current Assets

In January 2014, The Federal Aviation Administration approved Grand Forks, ND with

allowance to test fly UAS in the local North Dakota airspace. This is a landmark award, as

Grand Forks is only one of six test sites in the entire nation granted this exception. Grand

Forks has partnered with Northrup Grumman on Grand Sky, a $300M UAS venture projected

to create 3,000 permanent new jobs. The UAS industry is exploding just 1 hour from Thief

River Falls. NCTC has a relationship with North Dakota’s UAS programs and with direct UAS

industry connections, the community can take a slice of the fresh UAS pie.

With an estimated 1,000 local employees laid off during the winter months, there is a standing

seasonal workforce. This local workforce is skilled in manufacturing, a definite need for the

emerging UAS industry in assembling UAS components and subsystems. UAS are heavily

loaded with state of the art electronic systems. A local UAS sensor manufacturer would

leverage Digi-Key’s close location as a benefit in their supply chain.

Potential Threats

1. Competition with Grand Forks, ND UAS development.

2. Large infrastructure investment for emerging UAS business.

3. Loss of employees from existing employers must be backfilled.

FY2014 Targets

1. Engage 5 UAS industry businesses and sell the benefits of building locally.

2. Have 1 UAS business visit and build a relationship with local representatives.

3. Have approved and launch a specific benefit package/strategy for 1 UAS business to

invest locally.

UAS are already being used for: Agriculture • Law enforcement • Telecommunication• Aerial imaging/mapping • • Television news coverage • Environmental monitoring • Oil and gas exploration and • Freight transport.

Support

Investment

Risk

Reward

Time

UAS Industry

Page 8: TRF Economic Strategy 1a

Pg. 06

Regional Airport

Regional Airport

Positioning

In addition to passenger air service, Thief River Falls regional airport has the potential to

become Northwest Minnesota’s air hub for industrial service and commercial growth.

Current Assets

The regional airport is currently under an Essential Air Service contract for passenger travel.

The airport ships 3 million packages per year, and is a distribution point for DHL, UPS, and

FEDEX. A $2.2M, 19,800 sqft. Multi-Purpose Hangar was constructed in 2010. The runway

was newly resurfaced in 2012. The NCTC Aviation Program Campus is on the airport property

and is slated to receive a $6M facilities improvement bond.

Potential Threats

1. Loss of EAS funding.

2. NCTC Aviation program close or relocation.

3. Reduction in Digi-Key, UPS, FEDEX, DHL commercial shipments.

FY2014 Targets

1. Retain EAS contract, build relationships with current passenger carrier and other

potential carriers.

2. Stimulate Airport Authority to facilitate commercial growth.

3. Fund and launch a “Fly TRF” marketing campaign.

4. Secure contract adding 1 new commercial business to airport property.

The Regional Airport terminal was recenlty remodled and runway resurfaced in 2012. Its facilities are primed for new business.

$2.2M Hangar 900 Acre Property

Support

InvestmentRisk

Reward

Time

Airport

Page 9: TRF Economic Strategy 1a

Pg. 07

Gilbert Industrial Park

Gilbert Industrial Park

Positioning

The Gilbert Industrial Park is cooperatively owned by the City of Thief River Falls and Jobs,

Inc. The Park has been designated to be developed as commercial-industrial space.

Current Assets

There are 17 available lots in the Park. The lots are currently zoned and platted as I2-

Industrial. The lots are “Shovel Ready” with storm sewer, water, and electrical utilities stubbed

in. The central traffic corridor through the Park is Greenwood Street and is paved. A

competitive price point per lot is below current market value. The Park is located very close to

major employers, Digi-Key and Arctic Cat, as well as the main trucking arteries of Greenwood,

HWY 32 south, and HWY 59 north.

Potential Threats

1. Agricultural land owners in the area may oppose expansion.

2. City taxes and assessments may push business to locate outside City limits.

FY2014 Targets

1. Promote Shovel Ready Site on dedicated Gilbert Industrial Park City webpage.

2. Secure sale of 1 lot to a commercial-industrial business for development.

The Park is shovel ready with utilities for industrial development.

Support

Investment

Risk

Reward

Time

Gilbert Industrial Park

Page 10: TRF Economic Strategy 1a

Pg. 08

New Sanford Medical Site

New Sanford Medical Site

Positioning

Sanford Health has invested $60M into a new 242 acre site. The site will employ an estimated

600, near a 115 acre location available for retail development. The hospital is currently using

60 acres, with approximately 180 acres open for future use.

Current Assets

Sanford leadership has expressed an interest in supporting the community. Discussions have

communicated initiatives to benefit the local economy and resident’s health. A cooperative plan

with Sanford to cultivate and develop the new site must be established.

Potential Threats

1. Local residents opposing development.

2. Funding required to build infrastructure.

3. Delayed decision making process regarding development plan.

FY2014 Targets

1. Schedule and attend monthly Sanford Site Development Committee meetings.

2. With input from community, City, County, release a cooperative development plan for

the site.

3. Gain approval for Phase 1 of the plan, 2015 completion.

The new Sanford Hospital will create an estitmated 210 new long term jobs.

Originally Proposed Sanford Site with Housing and Commercial Development.

Support

Investment

RiskReward

Time

Sanford Site

Page 11: TRF Economic Strategy 1a

Pg. 09

Downtown Redevelopment and Rehab

Downtown Redevelopment and Rehab

Positioning

Downtown Thief River Falls defines the City’s energy and presents an opportunity to revitalize

the community’s spirit. Empty, decrepit downtown buildings are blight and need rehab to

reverse stalled growth.

Current Assets

The downtown area has a bustling and eclectic feel unique to the county. Downtown has

several empty units and buildings in need of rehabilitation. It provides a centralized location for

apartment style housing with close proximity to retail business and employers. High energy

business or entertainment should be located downtown to boost community feel. The old

hospital buildings and grounds have great potential for repurposing.

Potential Threats

1. Major building and utility rehab may be costly.

2. Loss of current business tenants.

3. Building owners not willing to cooperate with rehab.

FY2014 Targets

1. Using the TRF Community Development Loan Program, rehab 1 unit downtown with a

new business tenant.

2. Build relationships with developers to specifically revitalize downtown.

3. Connect with 1 developer to demolish/repurpose/rehab old hospital site.

4. Launch “Downtown Living” marketing/rehab campaign to draw publicity to downtown.

Support

Investment

Risk

Reward

Time

Downtown

The community has completed several successful rebhab projects including the Soo Line Depot and Carnegie Library.

Page 12: TRF Economic Strategy 1a

Pg. 10

Key Contacts

Key Contacts

Workforce Housing

Margaret Kaplan, Director of Community Development, Minnesota Housing Finance Agency, (651) 296-3617

Hal Clapp, Program/Loan Officer, Greater Minnesota Housing Fund, (651) 221-1997

Bill Vanderwall, Capacity Building Manager, Minnesota Housing Partnership, (651) 925-5541

Rick Bloxham, Homeownership Manager, Federal Home Loan Bank, (800) 544-3452, ext. 1198

NCTC UAS Program

Daniel J. Klug, Chief Development Officer, Northland Community & Technical College, (218) 793-2465

James Retka, Dean of Career and Technical Education, Northland Community & Technical College, (218) 683-8643

UAS Industry

Forrest White, Northrup Grumman, (701) 885-2220

Florent Martel, Principal Engineer, Machine Visionaries, LLC, (320) 300-0302

Daniel J. Klug, Chief Development Officer, Northland Community & Technical College, (218) 793-2465

Regional Airport

Alexandre-Thiery Girard, Director, Project Management, Explorer Solutions, (514) 971-2764

Mark Borseth, Community Services Director, City of Thief River Falls, (218) 684-1012

Joe Hendrick, Airport Manager, TVF Airport Authority, (218) 684-1013

Gilbert Industrial Park

Mike Moore, Jobs Inc., (218) 779-7858

Maryel Anderson, Anderson Realty, (218) 681-4087

Mark Borseth, Community Services Director, City of Thief River Falls, (218) 684-1012

New Sanford Medical Site

Rob Lovejoy, Chief Operating Officer, Sanford Health, (218) 681-4240

Downtown Redevelopment and Rehab

John Shoffner, Director, Office of Business Development, DEED, (651) 259-7445

Mark Borseth, Community Services Director, City of Thief River Falls, (218) 684-1012

Arlen Kangas, Chief Economist, Midwest Minnesota Community Development Corporation, [email protected]

Page 13: TRF Economic Strategy 1a

Pg. 11

Community Data

Community Data

Sources

A variety of resources were utilized to obtain information for this section. Data sources

included:7

U.S. Census Bureau.

Estimates and projections from the State Demographer.

Records and data from the City of Thief River Falls.

Records and data maintained by Pennington County.

Data provided by HousingLink.

Interviews with elected officials and staff from the City of Thief River Falls.

Interviews with community leaders.

Interviews with people familiar with the area’s economic conditions including

employers, property managers, and developers.

Area housing agencies.

Rental property owner surveys.

Market Area Overview

In addition to City of Thief River Falls, this section also examines demographic information for

a market area that surrounds the City. Referred to in this Study as the “Market Area,” it

includes 14 Cities and 49 Townships in Pennington, Marshall, Red Lake and Kittson Counties.7

Page 14: TRF Economic Strategy 1a

Pg. 12

Population Data and Trends

Population Data and Trends

Table 1 Population Trends - 1980 to 2010

1980

Population 1990

Population 2000

Population % Change 1990-2000

2010

Population % Change 2000-2010

Thief River Falls 9,105 8,010 8,410 5.0% 8,573 1.9%

Market Area 27,651 23,921 23,679 -1.0% 23,627 -0.2%

Pennington Co. 15,258 13,306 13,584 2.1% 13,930 2.5%

Source: U.S. Census.

Page 15: TRF Economic Strategy 1a

Pg. 13

Population by Age Trends: 2000 to 2010

Population by Age Trends: 2000 to 2010

Table 2 Population by Age - 2000 to 2010

City of Thief River Falls Market Area

Age 2000 2010 Change 2000 2010 Change

0-19 2,234 2,190 -44 / -2.0% 6,635 6,249 -386 / -5.8%

20-24 637 642 5 / 0.8% 1,342 1,214 -128 / -9.5%

25-34 1,046 1,210 164 / 15.7% 2,598 2,817 219 / 8.4%

35-44 1,152 926 -226 / -19.6% 3,469 2,801 -668 / -19.3%

45-54 1,041 1,122 81 / 7.8% 3,250 3,500 250 / 7.7%

55-64 716 967 251 / 35.1% 2,261 3,028 767 / 33.9%

65-74 643 654 11 / 1.7% 1,846 1,930 84 / 4.6%

75-84 607 512 -95 / -15.7% 1,571 1,362 -209 / -13.3%

85+ 334 350 16 / 4.8% 707 726 19 / 2.7%

Total 8,410 8,573 163 / 1.9% 23,679 23,627 -52 / -0.2%

*Note the significant reduction in age groups 0-24 and 35-44 and a significant increase in age groups 55-

64 during this 10 year period. A key to future economic health in the community will be to retain the 0-24

and 35-44 groups in order to establish a sustainable consumer base.

Page 16: TRF Economic Strategy 1a

Pg. 14

Population Projections

Population Projections

Table 3 Population Projections Through 2015

2010 Population

2015 Projection from 10-year trend

2015 Projection from 20-year trend

2015 Projection State Demographer

Thief River Falls 8,573 8,656 8,724 8,969

Market Area 23,627 23,601 23,554 24,171

Pennington Co. 13,930 14,107 14,093 14,420

Source: U.S. Census; Community Partners Research, Inc.; MN State Demographer.

Page 17: TRF Economic Strategy 1a

Pg. 15

Household Data and Trends

Household Data and Trends

Table 4 Household Trends - 1980 to 2010

1980

Households 1990

Households 2000

Households % Change 1990-2000

2010

Households % Change 2000-2010

Thief River Falls 3,498 3,366 3,619 7.5% 3,802 5.1%

Market Area 9,630 9,278 9,647 4.0% 9,946 3.1%

Pennington Co. 5,437 5,173 5,525 6.8% 5,836 5.6%

Source: U.S. Census.

According to the 2010 Census, Thief River Falls added 183 households between 2000 and

2010. This represented household growth of 5.1%.

Page 18: TRF Economic Strategy 1a

Pg. 16

Household by Age Trends: 2000 to 2010

Household by Age Trends: 2000 to 2010

Table 5 Households by Age - 2000 to 2010

City of Thief River Falls Market Area

Age 2000 2010 Change 2000 2010 Change

15-24 338 328 -10 / -3.0% 608 504 -104 / 17.1%

25-34 596 671 75 / 12.6% 1,366 1,460 94 / 6.9%

35-44 643 559 -84 / -13.1% 1,882 1,602 -280 / -14.9%

45-54 603 674 71 / 11.8% 1,816 1,959 143 / 7.9%

55-64 434 573 139 / 32.0% 1,342 1,750 408 / 30.4%

65-74 423 434 11 / 2.6% 1,163 1,237 74 / 6.4%

75-84 417 359 -58 / -13.9% 1,098 971 -127 / 11.6%

85+ 165 204 39 / 23.6% 372 463 91 / 24.5%

Total 3,619 3,802 183 / 5.1% 9,647 9,946 299 / 3.1%

*Note the significant reduction in age groups 15-24 and 35-44 and a significant increase in age

groups 55-64 during this 10 year period. A key to future economic health in the community will

be to retain the 15-24 and 35-44 groups in order to establish a sustainable consumer base.

Page 19: TRF Economic Strategy 1a

Pg. 17

Average Household Size

Average Household Size

Table 6 Average Number of Persons Per Household - 1980 to 2010

1980 Census 1990 Census 2000 Census 2010 Census

Thief River Falls 2.50 2.28 2.21 2.18

Market Area 2.81 2.51 2.37 2.33

Pennington County 2.74 2.50 2.38 2.33

Source: U.S. Census.

Page 20: TRF Economic Strategy 1a

Pg. 18

Household Projections

Household Projections Trend-based Projections

Table 7 Trend-Based Household Projections Through 2015

2010 Census 2015 Projection

(from 10-year trend) 2015 Projection (from 20-year trend)

Thief River Falls 3,802 3,900 3,925

Market Area 9,946 10,100 10,125

Pennington County 5,836 6,000 6,025

Source: U.S. Census; Community Partners Research, Inc.

Over the past twenty years, the City has had a relatively consistent rate of household growth.

As a result, the projected range of growth is well-defined, regardless of the time period used in

the calculation. On an average basis, this would equate to 20 to 25 additional households per

year.7

Page 21: TRF Economic Strategy 1a

Pg. 19

Alternative Projection Based on Job Growth

Alternative Projection Based on Job Growth

Table 8 Market Area Household Growth - Potential Ranges

Low-end Growth Average

Annual Range High-end Growth Average

Annual Range

Market Area 31 to 36 Households 72 to 90 Households

Source: Community Partners Research, Inc.

Although the trend-based calculations presented earlier can be supported by patterns over the

past 30 years, an argument can also be made that near-term growth will occur at a

significantly faster rate. This change in the rate of growth would be driven by job creation,

namely the consistent growth of Digi-Key Corporation. This has the potential to alter the

traditional pattern, and result in an above-average in-migration of people and households.

In summary, the projection based on job growth potential yields a forecast that the entire

Market Area could add between 72 and 90 households per year, a level of growth that is

considerably higher than past trends would suggest.7

Page 22: TRF Economic Strategy 1a

Pg. 20

Households by Type

Households by Type

Table 11 Market Area Household Composition From 2000 to 2010

2000

Census 2010

Census

Change

Family Households

Married Couple with own children 2,226 1,846 -380

Single Parent with own children 783 919 +136

Married Couple w/o own children 2,915 3,113 +198

Family Householder no spouse w/o own children 359 444 +85

Total Families 6,283 6,322 +39

Non-Family Households

Single Person 2,903 3,070 +167

Two or more persons 461 554 +93

Total Non-Families 3,364 3,624 +260

Source: U.S. Census.

Page 23: TRF Economic Strategy 1a

Pg. 21

2010 Income Data

2010 Income Data

Table 15 Median Household Income: 2000 to 2010

2000 Median 2010 Median % Change

Thief River Falls $30,759 $36,218 17.7%

Pennington County $34,216 $44,926 31.3%

Minnesota $47,111 $57,243 21.5%

Source: U.S. Census; 2010 ACS 5-year survey.

Table 16 Median Family Income: 2000 to 20 10

2000 Median 2010 Median % Change

Thief River Falls $40,908 $52,292 27.8%

Pennington County $43,936 $56,820 29.3%

Minnesota $56,874 $71,307 25.4%

Source: U.S. Census; 2010 ACS 5-year survey.

Household income represents all independent households, including people living alone and

unrelated individuals in a housing unit. Families are two or more related individuals living in a

household. No median income information was available for the aggregated jurisdictions that

form the Market Area.7

Page 24: TRF Economic Strategy 1a

Pg. 22

Household Income Distribution 2010

Household Income Distribution 2010

Table 17 Market Area Household Income Distribution - 2000 to 2010

Household Income Number of Households

2000 Number of Households

in 2010

Change 2000 to 2010

$0 - $14,999 1,932 1,338 -594

$15,000 - $24,999 1,734 1,224 -510

$25,000 - $34,999 1,348 1,325 -23

$35,000 - $49,999 1,802 1,460 -342

$50,000 - $74,999 1,888 2,247 +359

$75,000 - $99,999 575 1,357 +782

$100,000+ 343 939 +596

Total 9,622 9,890 +268

Source: 2000 Census; 2010 American Community Survey 5-year sample.

Page 25: TRF Economic Strategy 1a

Pg. 23

Major Area Employers

Major Area Employers Most of the job opportunities in the Market Area are located in Thief River Falls. Major

employers with 100 or more employees include:

Digi-Key Corporation

Arctic Cat, Inc.

Sanford Health

Seven Clans Casino Hotel and Waterpark

School District #564

Pennington County

Northern Pride, Inc.

Altru Clinic

Northland Community and Technical College

City of Thief River Falls

CP Rail

Dean Foods/Land O’Lakes

Source: Community Profiles, Minnesota Department of Employment and Economic

Development.

Page 26: TRF Economic Strategy 1a

Pg. 24

Pennington County Labor Force Data

Pennington County Labor Force Data

Table 26 Pennington County Labor Force Data: 2000 - 2011

Year

Labor

Force Employed Unemployed Unemployment

Rate - County Unemployment

Rate - MN Unemployment

Rate - US

2000 7,672 7,219 453 5.9% 3.1% 4.0%

2001 7,931 7,523 408 5.1% 3.8% 4.7%

2002 7,961 7,491 470 5.9% 4.5% 5.8%

2003 8,043 7,554 489 6.1% 4.9% 6.0%

2004 8,146 7,620 526 6.5% 4.6% 5.6%

2005 8,197 7,733 464 5.7% 4.2% 5.1%

2006 8,375 7,906 469 5.6% 4.1% 4.6%

2007 8,565 7,966 599 7.0% 4.6% 4.6%

2008 8,750 8,135 615 7.0% 5.4% 5.8%

2009 9,008 8,181 827 9.2% 8.1% 9.3%

2010 9,233 8,474 759 8.2% 7.3% 9.6%

2011 9,463 8,801 662 7.0% 6.5% 8.9%

Source: MN Department of Employment and Economic Development.

There has been significant growth in the size of the County’s available labor force over the past decade.

When comparing 2011 to 2000, the labor force increased by 1,791 people, or more than 23%.

Page 27: TRF Economic Strategy 1a

Pg. 25

Employment and Wages by Industry

Employment and Wages by Industry

Table 28 Thief River Falls Average Annual Wages by Industry - 2010

Industry Employment Average Annual Wage

Total All Industry 7,645 $37,596

Construction 130 $49,036

Manufacturing 1,031 $41,340

Trade, Transportation, Utilities 3,602 $39,780

Financial Activities 181 $39,000

Professional and Business Services 115 $32,240

Education and Health Services 517 $41,184

Leisure and Hospitality 358 $10,140

Other Services 194 $15,288

Public Administration 272 $46,696

Source: MN Department of Employment and Economic Development.

The single largest industry sector was Trade, Transportation and Utilities, with more than 3,600

employees in 2010. Presumably, most of the workers at Digi-Key, the region’s largest

employer, were classified within this sector. The second largest industry, Manufacturing, had

more than 1,000 workers. It is assumed that many Arctic Cat employees would be classified

under Manufacturing.

Page 28: TRF Economic Strategy 1a

Pg. 26

Average Employment & Wages for Market Area

Average Employment & Wages for Market Area

Table 29 Average Employment and Wages for all Industry - 2010

Industry Employment Average Annual Wage

Thief River Falls 7,645 $37,596

Warren 872 $34,476

Red Lake Falls 666 $26,988

Grygla 138 $32,500

Middle River 126 $23,244

Newfolden 99 $28,132

Oklee 93 $31,304

St. Hilaire 74 $43,368

Plummer 36 $21,580

Source: MN Department of Employment and Economic Development.

Average annual wages vary widely between the Market Area communities.7

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Commuting Patterns of Area Workers

Commuting Patterns of Area Workers

Table 30 Commuting Times for Thief River Falls Area Residents - 2010

Travel Time

City of Residence

Less than 10

minutes 10 to 19 minutes 20 to 39

minutes 40 minutes or

more Total

Thief River Falls 2,219 / 51.1% 1,489 / 34.3% 395 / 9.1% 243 / 5.6% 4,225

Warren 450 / 56.3% 108 / 13.5% 114 / 14.3% 127 / 15.9% 799

Red Lake Falls 238 / 34.8% 58 / 8.5% 294 / 43.0% 93 / 13.6% 683

Grygla 64 / 54.2% 0 / 0% 14 / 11.9% 40 / 33.9% 118

Middle River 31 / 21.7% 5 / 3.5% 74 / 51.7% 33 / 23.1% 143

Newfolden 25 / 21.4% 19 / 16.2% 58 / 49.6% 15 / 12.8% 117

Oklee 61 / 27.7% 34 / 15.5% 72 / 32.7% 53 / 24.1% 220

St. Hilaire 13 / 11.3% 76 / 66.1% 14 / 12.2% 12 / 10.4% 115

Plummer 39 / 28.5% 30 / 21.9% 49 / 35.8% 19 / 13.9% 137

Source: 2010 American Community Survey 5-year sample.

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References

References 1. “40 Years of Superior Service.” Digi-Key Corporation.

http://www.digikey.com/us/en/info/Company-Profile.html

2. “Fiscal 2013 Annual Report.” Arctic Cat, Inc. June 2013.

3. “Sanford Thief River Falls Medical Clinic.” Sanford Health.

http://www.sanfordhealth.org/Construction/ThiefRiverFallsMedicalCenter

4. “The Economic Impact of Unmanned Aircraft Systems Integration in the United States.”

Association for Unmanned Vehicle Systems International (AUVSI). March 2013.

5. “Airport Authority Formed.” Thief River Falls Regional Airport. http://www.trfairport.com/ July

2013

6. “Economy in Thief River Falls, Minnesota.” Sperling’s Best Places.

http://www.bestplaces.net/economy/city/minnesota/thief_river_falls June 2012.

7. “City of Thief River Falls Housing Study Update.” Community Partners Research,

Inc. February 2012.

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Contact Information

Contact Information

Edwin Dale Hahn

504 Arnold Ave. South

Thief River Falls, MN 56701

Tel (218) 686-3970

[email protected]

Disclaimer: This document is a proof and is by no means comprehensive. All forward looking

statements are projections and not matter of fact. The views and opinions expressed are the

author’s and are not representative of Jobs, Inc., the City of Thief River Falls, or Pennington

County, MN.