MINNEHAHA-HIAWATHA CORRIDOR MARKET...

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MINNEHAHA-HIAWATHA CORRIDOR MARKET ANALYSIS Prepared for Hennepin County October 2008

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MINNEHAHA-HIAWATHA CORRIDOR MARKET ANALYSIS

Prepared for

Hennepin County

October 2008

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222 South Ninth Street Suite 380 Minneapolis, Minnesota 55402 · (612) 339-7000 Fax: (612) 338-5572

MINNEHAHA-HIAWATHA CORRIDOR MARKET ANALYSIS

Prepared for

Hennepin County

Prepared by

McComb Group, Ltd.

October 2008

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TABLE OF CONTENTS Chapter Subject Page

SUMMARY OF FINDINGS ............................................................................... viii INTRODUCTION ...................................................................................................1 I MINNEHAHA-HIAWATHA CORRIDOR STUDY AREA..................................3

Building Appearance ...............................................................................................7 Traffic Counts ..........................................................................................................8 Access ......................................................................................................................9 II COMPETITIVE SHOPPING AREAS ..................................................................10 III RETAIL BUSINESS INTERVIEWS....................................................................16

Year Store Opened.................................................................................................16 Reason for Choosing Location...............................................................................18 Store Size ...............................................................................................................18 Employment...........................................................................................................19 Employee Transit Use............................................................................................20 Customer Transit Use ............................................................................................20 Where Customers Live/Come From ......................................................................20 Strengths of This Location for Your Business.......................................................21 Weaknesses of This Location for Your Business ..................................................21 Improvements to Area............................................................................................22 Sales Growth..........................................................................................................23 Plans for Change to Business.................................................................................23 Business Needs ......................................................................................................24 IV MINNEHAHA-HIAWATHA CORRIDOR TRADE AREAS .............................26

Population and Households....................................................................................26 Household Income .................................................................................................30 Ethnic Diversity .....................................................................................................33 Demographic Characteristics .................................................................................36 LRT Retail Potential ..............................................................................................36 Purchasing Power...................................................................................................40 V RETAIL STORE AND SERVICE POTENTIAL .................................................41

Retail Potential.......................................................................................................41 Sales Potential........................................................................................................42 Additional Retail Space .........................................................................................44

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TABLE OF CONTENTS Chapter Subject Page

VI SOCIOECONOMIC CHARACTERISTICS.........................................................48 VII HOUSING DEMAND...........................................................................................70

Future Multi-Family Demand ................................................................................74 VIII MINNEHAHA-HIAWATHA CORRIDOR STUDY AREA ASSESSOR’S ESTIMATED MARKET VALUE .....................................................................76 Mortgage Foreclosures...........................................................................................77

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LIST OF TABLES Table Title Page

1 Minnehaha-Hiawatha Corridor Study Area Retail ..................................................6

2 Minnehaha-Hiawatha Corridor Study Area Retail/Service Storefront Class Ratings.................................................................................................................8

3 Minnehaha-Hiawatha Corridor Average Daily Traffic Counts: 2002, 2004 and 2006 ..............................................................................................................9

4 Minnehaha-Hiawatha Corridor Competitive Retail Areas ....................................12

5 Minnehaha-Hiawatha Corridor Retail Survey: Survey Participants Year Opened...............................................................................................................16

6 Minnehaha-Hiawatha Corridor Retail Survey Responses to the Question: Why Did You Choose This Location? ..............................................................18

7 Minnehaha-Hiawatha Corridor Retail Survey: Survey Participants GLA.............18

8 Minnehaha-Hiawatha Corridor Employees by Retail Business Type ...................19

9 Minnehaha-Hiawatha Corridor Retail Survey: Survey Participants Number of Employees.....................................................................................................19

10 Minnehaha-Hiawatha Corridor Retail Survey Responses to the Question: What Percentage of Your Employees Use Transit (Such as LRT or Bus) to Get to Work? .....................................................................................................20

11 Minnehaha-Hiawatha Corridor Retail Survey Responses to the Question: What Percentage of Your Customers Use Transit (Such as LRT or Bus) to Get to Your Business? .......................................................................................20

12 Minnehaha-Hiawatha Corridor Retail Survey Responses to the Question: Where Do Your Customers Live/Come From?.................................................21

13 Minnehaha-Hiawatha Corridor Retail Survey Responses to the Question: What Are The Strengths of This Location For Your Business?........................21

14 Minnehaha-Hiawatha Corridor Retail Survey Responses to the Question: What Are The Weaknesses of This Location For Your Business? ...................22

15 Minnehaha-Hiawatha Corridor Retail Survey Responses to the Question: What Could Be Done to Improve Your Business?............................................22

16 Minnehaha-Hiawatha Corridor Retail Survey Responses to the Question: What Has Been Your Percent Sales Growth Since 2002? ................................23

17 Minnehaha-Hiawatha Corridor Retail Survey Responses to the Question: Do You Have Any Plans for Changes to Your Business in the Next 3 Years? ................................................................................................................23

18 Minnehaha-Hiawatha Corridor Retail Survey Responses to the Question: Does Your Store Meet Your Current Business Needs? ....................................24

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LIST OF TABLES (continued) Table Title Page

19 Minnehaha-Hiawatha Corridor Retail Survey Responses to the Question: Does Your Store Meet Your Future Business Needs? ......................................24

20 Minnehaha-Hiawatha Corridor Retail Survey Responses to the Question: What Will You Need in the Future?..................................................................24

21 Minnehaha-Hiawatha Corridor Retail Business Interview Participants by Area ...................................................................................................................25

22 Minnehaha-Hiawatha Corridor Trade Areas Population and Households: 1990 and 2000 Census; 2007 and 2012 Estimated............................................29

23 Minnehaha-Hiawatha Corridor Trade Areas Average and Median Household Income: 1990 and 2000 Census; 2007 and 2012 Estimated..............................30

24 Minnehaha-Hiawatha Corridor Trade Areas Household Income Distribution: 1990 and 2000 Census; 2007 and 2012 Estimated............................................32

25 Minnehaha-Hiawatha Corridor Trade Areas Household Income Distribution: 1990 and 2000 Census; 2007 and 2012 Estimated............................................33

26 Minnehaha-Hiawatha Corridor Trade Areas Race and Ethnicity: 2007 Estimated ...........................................................................................................33

27 Minnehaha/Lake Trade Area Demographic and Income Snapshot .......................37

28 Hiawatha Trade Area Demographic and Income Snapshot...................................38

29 Minnehaha-Hiawatha Corridor LRT Passenger Boardings: 2005 to 2007............39

30 Minnehaha-Hiawatha Corridor Trade Areas Retail Purchasing Power; 2007 and 2012 ............................................................................................................40

31 Minnehaha/Lake and Hiawatha Trade Areas Market Share and Trade Area Sales...................................................................................................................42

32 Hiawatha Trade Area Convenience Goods Purchasing Power, Market Share and Sales Potential; 2007 by Merchandise Category ........................................43

33 Hiawatha Trade Area Convenience Goods Sales Potential and Supportable Space; 2007 by Merchandise Category .............................................................43

34 Additional Supportable Retail Space; 2007 and 2012 ...........................................44

35 Minnehaha/Lake Trade Area Additional Supportable Space: 2007 and 2012 ......46

36 Hiawatha Trade Area Additional Supportable Space: 2007 and 2012 ..................47

37 City of Minneapolis and Minneapolis-St. Paul Metropolitan Area Building Permits; 2000 to 2007........................................................................................70

38 City of Minneapolis, Hiawatha Trade Area, and Minnehaha-Hiawatha Corridor Study Area Building Permits; 2000 to 2007.......................................72

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LIST OF TABLES (continued) Table Title Page

39 Multi-Family Development along the Hiawatha LRT Line; 2003 to 2009 26th Street to 54th Street .....................................................................................73

40 Minneapolis Housing Demand; 2009 to 2020 .......................................................74

41 Minnehaha-Hiawatha Corridor Annual Multi-Family Housing Demand; 2009 to 2020...............................................................................................................75 42 Assessor’s Estimated Market Value Minnehaha-Hiawatha Corridor Study Area ...................................................................................................................76 43 Mortgage Foreclosures: 2007 and 2008 Through April 10 Minnehaha-Hiawatha Corridor, Hiawatha Trade Area and City of Minneapolis.................................77

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LIST OF MAPS Map Title Page

1 Minnehaha-Hiawatha Corridor Study Area .............................................................3

2 Minnehaha-Hiawatha Corridor Retail Areas ...........................................................4

3 Minnehaha-Hiawatha Corridor Competitive Retail Areas ....................................11

4 Minnehaha-Hiawatha Corridor Retail Business Survey Sub Areas ......................17

5 Minnehaha-Hiawatha Corridor Trade Areas .........................................................27

6 Hiawatha Trade Area .............................................................................................28

7 Minnehaha/Lake and Hiawatha Trade Areas Household Density; 2012...............31

8 Minnehaha/Lake and Hiawatha Trade Areas 2012 Household Income: Percent Above $75,000....................................................................................34

9 Minnehaha/Lake and Hiawatha Trade Areas 2012 Household Income: Percent Above $100,000..................................................................................35

10 Percent of Population Under Age 19; 2007 ...........................................................49

11 Percent of Population Age 20 to 34; 2007.............................................................50

12 Percent of Population Age 35 to 64; 2007.............................................................51

13 Percent of Population Age 65+; 2007....................................................................52

14 Percent of Population Married With Children; 2007.............................................53

15 Percent of Population Married Without Children; 2007........................................54

16 Percent of Population Single Parent; 2007 ............................................................55

17 Percent of One Person Households; 2007..............................................................56

18 Percent of Population With No Vehicles; 2007.....................................................57

19 Percent of Population 2007: Caucasian .................................................................58

20 Percent of Population 2007: African American.....................................................59

21 Percent of Population 2007: Asian ........................................................................60

22 Percent of Population 2007: Pacific Islander.........................................................61

23 Percent of Population 2007: American Indian.......................................................62

24 Percent of Population 2007: Hispanic....................................................................63

25 Percent of Population 2007: Other/Multi-Race .....................................................64

26 Percent of Population With No High School Diploma; 2007................................65

27 Percent of Population With High School Diploma; 2007......................................66

28 Percent of Population With Some College; 2007 ..................................................67

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LIST OF MAPS Map Title Page

29 Percent of Population With College Degree; 2007................................................68

30 Percent of Population With Graduate Degree; 2007..............................................69

31 Hiawatha Trade Area Multi-Family Housing ........................................................71

32 Mortgage Foreclosures: 2007 and 2008 Through April 10 ...................................78

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SUMMARY OF FINDINGS The Minnehaha-Hiawatha Corridor study area stretches three miles south from the Midtown Greenway to Minnehaha Parkway and includes Hiawatha and Minnehaha Avenues and a five block area along 46th Street East between Minnehaha Avenue and 46th Avenue South. Six retail areas are included in the study area. Two areas -- Minnehaha and Lake and Hi-Lake -- are community-sized retail areas that contain 36 retail stores and 18 services. The other four are neighborhood shopping areas and have 13 to 30 establishments each. Overall, the study area contains 147 establishments: 74 retail stores and 73 services. Business establishments in the Minnehaha-Hiawatha Corridor compete with 610 establishments (363 retail stores and 247 services) located in an area generally bounded by I-94 on the north, Mississippi River on the east, Crosstown Highway on the south, and Bloomington Avenue on the west, and includes Highland Park in St. Paul and 66th Street and Cedar Avenue in Richfield. These establishments are competitive with businesses located in the Minnehaha-Hiawatha Corridor. Thirty-seven percent of the 114 retail businesses that responded to a telephone survey had experienced sales increases ranging from one to over 50 percent since 2002. About 16 percent reported fluctuating or steady sales and ten percent reported declines. Twenty percent of the respondents gave responses such as “too new”, “don’t know”, or “refused”. About 31 percent of the respondents reported plans for changes to their business over the next three years. Five percent of the businesses reported need to enlarge, but can’t expand. Sixteen percent of the respondents indicated their store does not meet their current business needs and 23 percent reported that their store does not meet their future business needs. Minnehaha-Hiawatha Corridor retail areas serve two trade areas: Minnehaha/Lake and Hiawatha trade areas. The Minnehaha/Lake trade area had an estimated population of 88,569 living in 35,020 households in 2007. Over the next five years, households are estimated to increase to 35,690. The Hiawatha trade area had a population of 50,072 in 2007 living in 21,610 households. Households are estimated to increase to about 22,264 over the next five years. Minnehaha/Lake trade area average household income was $44,738 in 2007 compared to $57,113 in the Hiawatha trade area. Fourteen percent of the households in the Hiawatha trade area had incomes above $100,000 in 2007 and is expected to increase to 20 percent of the households in 2012. Households with incomes above $75,000 per year were estimated at 28.4 percent in 2007 and are estimated to increase to 34.1 percent in 2012. There is potential to support additional retail stores and services in the Minnehaha-Hiawatha Corridor retail areas, as shown in Table i. These estimates are in addition to the existing retail buildings. This estimate represents potential; however, potential does not always result in new retail stores. The private sector and individual entrepreneurs must feel that the potential store location, its physical characteristics and trade area population is consistent with their store concept. As a result, estimates of additional retail space have been rated as likely, possible or unlikely.

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Table i

ADDITIONAL SUPPORTABLE RETAIL SPACE; 2007 AND 2012

Minnehaha/Lake Trade Area Hiawatha Trade AreaPotential 2007 2012 2007 2012

Likely 27,500 27,500 110,200 123,100 Possible 93,400 96,600 35,600 38,100 Unlikely 83,500 89,000 17,500 18,500 Total 204,400 213,100 163,300 179,700

Source: McComb Group, Ltd. Hiawatha trade area shopping areas have the potential for 123,100 square feet of likely retail stores and a possible 38,100 square feet in 2012. The most likely stores are convenience goods, food service, automotive, personal services, dental and chiropractic offices. Minnehaha/Lake has only 27,500 square feet of likely retail stores and 96,600 square feet of possible retail stores. Likely store candidates include a drug store, various shopping goods stores, and health care. Retail and service categories can locate in existing buildings or in new developments. Tenant turnover is a fact of life for retail space and provides the opportunity for renovation and building upgrades new businesses. New retail development will be needed to accommodate most of the additional retail space. Housing Development

Construction of the Hiawatha LRT resulted in 918 planned multi-family units along the LRT line between 28th and 54th Streets. As of mid-year 2008, 789 of these units had been completed and 673 units were occupied. About 65 percent of the completed units are apartments and 35 percent are condominiums. In the Minnehaha-Hiawatha Corridor study area, 567 units were planned and 473 have been completed. Of these units, 391 had been occupied at mid-year. Multi-family housing development potential in the LRT corridor is estimated at, on a stabilized basis, about 220 units in 2009, increasing to 265 units in 2014. Demand drops in 2015 with anticipated opening of the Central Corridor LRT line that provides a competitive LRT-oriented housing option. Housing demand in the Minnehaha-Hiawatha Corridor study area is estimated at 120 units in 2009 increasing to 146 in 2014. Housing demand is expected to decline in 2015 to 110 units increasing to 118 units in 2015. Development of new housing is likely to be below stabilized demand over the next few years due to economic and credit market conditions. Since 2003, the Minnehaha-Hiawatha Corridor study area has captured about 55 percent of the multi-family housing. Future unit absorption will depend on site availability. Rental units are likely to represent about 65 percent of the multi-family demand with the balance being for sale units.

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INTRODUCTION McComb Group, Ltd. was engaged by Hennepin County to conduct market analysis for the Minnehaha-Hiawatha Corridor Vision Plan. Work tasks conducted during this engagement are summarized below.

♦ Retail business establishments located in the study area were identified and categorized according to type of business. This included, but was not limited to: retail, food service, services, offices, and other types of retail establishments. Business clusters were identified as being generally retail and service to determine general relationship of competitive business establishments and adjacent residential areas. Business structures were rated at Class A, B, C and D. Retail areas in the study area were evaluated to determine their suitability for the current use. Factors that were evaluated include, but were not limited to: location, access, visibility, current and future traffic counts, and relationship to adjacent uses.

♦ Business owners and/or managers in the study area were interviewed to obtain their

impressions of their current location, the area from which they draw their customers, their input on strengths and weaknesses, and identify their suggestions for actions that would improve their business in Minneapolis. Other information included number of employees, business trends, and the adequacy of their current facilities to meet their current and future business needs. McComb Group attempted to contact all businesses located in the study area.

♦ Business establishments in each retail area serving the study area were categorized by

type to determine the tenant mix and the area’s economic diversity. Results of the study area evaluation business inventory was incorporated into this analysis.

♦ Shopping areas competitive with the study area retail areas were identified to determine

competitive impacts on present and future study area retail development. Principal competitors were identified and evaluated for anchor stores and tenant mix.

♦ Trade areas for retail areas in the study area were delineated based on arterial road

patterns, competitive shopping areas, and McComb Group experience. Demographic characteristics of each trade area were analyzed to identify and quantify those factors that generate support for retail and service establishments. Factors that were evaluated include: population, households, and household income. Demographic characteristics were identified for 1990, 2000, 2007 and 2012. Retail and service purchasing power of trade area households were estimated using McComb Group’s proprietary purchasing power model.

♦ Current and future retail and service demand for 2007 and 2012 were estimated for

Minnehaha/Lake and Minnehaha-Hiawatha Corridor retail areas by business type based on purchasing power converted to square feet of space by type of business establishment. Retail potential for each retail area was estimated taking into consideration competitive

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impacts, trade area demographics, and trade area purchasing power and estimated market share. Estimates of retail, food service, and services space supportable by sales potential was prepared for target years of 2007 and 2012. This analysis determined there was demand for retail uses that are not currently located in the study area. Those business categories with sufficient potential for profitable operation in each retail area were identified.

♦ Past absorption of multi-family housing in the study area and Minneapolis was quantified

including housing type and number of units for the period 2000 to 2007.

♦ Market demand for multi-family housing in the study area was estimated including number and types of units the market will support over the next ten years.

♦ Demographic and socioeconomic data identified in the RFP was collected for geographic

areas requested by the county. This data was mapped by micro-grids and provide a detailed display of socioeconomic characteristics.

This report contains the primary information needed to support the principal conclusions. However, in a report of this nature, it is not possible to include all of the information that was developed and evaluated. Any additional information will be furnished upon request. Report Purpose

This report was prepared in accordance with our proposal dated September 13, 2007. This report was prepared with the understanding that the results of our work will be used by the client as part of the Minnehaha-Hiawatha Corridor Vision Plan. Our report was prepared for that purpose and is subject to the following qualifications:

• Our analysis did not ascertain the legal and regulatory requirements applicable to this project including zoning, other state and local government regulations, permits and licenses. No effort was made to determine the possible effect on the proposed project of present or future federal, state or local legislation, or any environmental or ecological matters.

• Our report and analysis was based on estimates, assumptions and other information developed from research of the market, knowledge of the industry and discussions with the client. Some assumptions inevitably will not materialize and unanticipated events and circumstances may occur; therefore, actual results achieved will vary from the analysis.

• Our analysis did not evaluate management’s effectiveness nor are we responsible for future marketing efforts and other management actions upon which actual results are dependent.

Our report is intended solely for the purpose described above and should not be used for any other purpose without our prior written permission. Permission for other use of the report will be granted only upon meeting company standards for the proposed use.

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Chapter I

MINNEHAHA-HIAWATHA CORRIDOR STUDY AREA The Minnehaha-Hiawatha Corridor study area includes a three-mile stretch from the Midtown Greenway south to Minnehaha Parkway and extends from the LRT line to one-half block east of Minnehaha Avenue, as shown on Map 1. Additionally, a five-block stretch on both sides of 46th Street East from Minnehaha Avenue to 46th Avenue South is also included in the study area. The study area is the central portion of Hiawatha Avenue, also known as TH-55, which is a major transportation corridor that provides access to downtown Minneapolis from south Minneapolis and the Minneapolis-St. Paul International Airport. This corridor has experienced major redevelopment with the construction of Minnesota’s first light rail line, which opened in 2004. The study area has 3 of 17 transit stations for the light rail system, attracting commuters to the corridor. Development interest in the corridor has created a need for comprehensive planning to identify current land uses and future land use taking into consideration the needs of residents and businesses in the Minnehaha-Hiawatha study area.

Map 1

MINNEHAHA-HIAWATHA CORRIDOR STUDY AREA

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Retail store locations within the Minnehaha-Hiawatha Corridor study area are shown on Map 2. Even though the Hi-Lake retail area (shown on the map as dotted line) is not included in the Minnehaha-Hiawatha Corridor, it is included in this analysis because it functions as part of the Minnehaha-Hiawatha Corridor and benefits from the adjacent LRT station.

Map 2

MINNEHAHA-HIAWATHA CORRIDOR RETAIL AREAS

Retail development in the corridor was first influenced by the street car system, which served the study area with a route that extended along 27th Street to Minnehaha Avenue at 31st Street and then extended south to Minnehaha Park and Fort Snelling. This line crossed the Selby-Lake line, which extended from Hennepin Avenue in Minneapolis to downtown St. Paul. This created a large retail node at Lake Street. This is why most of the retail is located along Minnehaha Avenue in buildings that were built before World War II. A second street car line extended from downtown through the residential neighborhoods and crossed 46th Street at 46th Avenue before crossing the Ford Bridge to St. Paul. The street car ceased operation in 1953. Retail development along Hiawatha generally occurred following World War II as the automobile became more prevalent. Most of these buildings date from the fifties and sixties although some are more recent. Also, some businesses have located in pre-war industrial buildings.

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Minnehaha-Hiawatha Corridor retail locations are concentrated in six separate retail nodes: Minnehaha & Lake, Hi-Lake, Minnehaha North, Minnehaha & 38th, Minnehaha & 42nd, and Hiawatha & 46th. These areas are shown on Map 2 and described below. A summary table for retail tenant mix is included in Table 1. Detailed retail area tenant mix is included in the Appendix.

♦ Minnehaha and Lake has the largest concentration of retail and service establishments along the Minnehaha-Hiawatha Corridor. The Minnehaha and Lake retail area is bound by 28th Street on the north, 31st Street on the south, 27th Avenue to the east and Hiawatha Avenue to the west. This area encompasses the original street car commercial area and has been expanded by Minnehaha Center, which was developed on the site of the former JI Case Plant in the 1970’s as an enclosed mall and was renovated in the late 1990’s. This renovation reduced the number of retail stores. Most of the center is now occupied by a charter school. Today, this Minnehaha and Lake retail area contains 25 retail and 13 service establishments and is anchored by Cub Foods, Rainbow Foods, and Target which was remerchandised this year. Additional retail establishments include a liquor store, video store, one full-service restaurant, five limited service restaurants, one drinking establishment, one auto parts store and 12 shopping goods providers. Services in this center include one auto service, four personal care/personal services, one business service, one financial service, two medical, two entertainment and two government offices.

♦ Hi-Lake retail area consists primarily of the Hi-Lake shopping center, which is

immediately west of the LRT station. Hi-Lake Center was recently redeveloped and remerchandised. This area contains a total of 16 retail and service establishments. Retail establishments include a food store, liquor store, two limited service restaurants, an auto parts store and six shopping goods providers. Service establishments include two financial services, YWCA, a professional service and a personal care provider.

♦ Minnehaha North has a few scattered retail establishments. This retail area is bound by

31st Street to the north, 36th Street to the south, Minnehaha Avenue to the east and Hiawatha Avenue to the west. This retail area is service-oriented with 11 services and only two retail establishments. Services include three auto services, three personal care/personal services, one laundry service, one financial service, one dental office and two other service providers. Retail in this area includes two specialty store merchants.

♦ Minnehaha and 38th retail node is focused on 38th and Minnehaha. The sub area is

bound by 36th Street to the north, 39th Street to the south, Minnehaha Avenue to the east and Hiawatha Avenue to the west. This convenience retail area contains 10 retail stores and 15 service establishments. Retail includes a flower shop, three food service providers, a convenience/gasoline establishment and five shopping goods merchants. This retail area contains a large concentration of auto services with seven establishments, in addition to three personal care/personal services, one financial service, one entertainment establishment, two other services and an American Legion Post. A mixed-use development has been proposed for the southeast corner of Hiawatha and 38th Street, which will contain retail space on the first floor.

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Table 1

MINNEHAHA-HIAWATHA CORRIDOR STUDY AREA RETAIL

Lake Street Hi-Lake Minnehaha Minnehaha & Minnehaha & Hiawatha &Establishment Type & Minnehaha Area North 38th Street 42nd Street 46th Street Total

CONVENIENCE RETAILFood 2 1 2 5Drug Store 1 1Liquor 1 1 1 3Hardware 1 1Floral 1 1Video 1 1 2

FOOD SERVICEFull Service 1 2 2 3 8Limited Service 5 2 1 2 4 14Drinking Establishments 1 1

CONVENIENCE/GASOLINEConvenience/Gasoline 1 2 3

SHOPPING GOODSGeneral Merchandise 1 1 2Variety 1 1 2Apparel/Accessories 3 2 5Furniture & Home Furnishings 1 2 3Electronics 2 1 3Other Shopping Goods 6 2 2 1 2 13Pre-Owned Merchandise 1 1 2

HOME IMPROVEMENTHome Improvement 2 2Lawn & Garden 1 1

AUTOMOTIVEAuto Parts 1 1 2 Total Retail 25 11 2 10 11 15 74

SERVICESAuto Services 1 3 7 2 2 15Personal Care 3 1 1 2 1 8Personal Services 1 2 1 4 8Business Services 1 1Laundry/Dry Cleaning 1 1 1 3Financial 1 2 1 1 1 6Insurance 1 1 2Medical 2 2 4Dental 1 1 1 3Entertainment/Recreation 2 1 1 2 1 7Professional Services 1 2 3Other Services 2 2 5 1 10Fraternal 1 1Government 2 2 Total Services 13 5 11 15 19 10 73

TOTAL 38 16 13 25 30 25 147

Source: McComb Group, Ltd.

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♦ Minnehaha and 42nd retail establishments are generally oriented along Minnehaha and Hiawatha. The sub area is bound by 39th Street to the north, 45th Street to the south, Minnehaha Avenue to the east and Hiawatha Avenue to the west. This retail area contains a total of 30 retail and service establishments. Retailers include two food stores, a hardware store, four food service restaurants, one shopping goods store, two home improvement stores and one lawn and garden store. Services include two auto services, five personal care/personal service, one laundry service, one insurance service, one dental office, two entertainment establishments, two professional services and five other services.

♦ Hiawatha and 46th retail establishments are oriented to both Minnehaha and Hiawatha

Avenues. The sub area is bound by 45th Street to the north, Minnehaha Parkway to the south, Minnehaha Avenue to the east and Hiawatha Avenue to the west. This retail area contains 25 retail and service establishments. There are 15 retail stores which include a drug store, liquor store, video store, seven food service restaurants, two convenience/gasoline stations and three shopping goods merchants. There are a total of 10 service establishments in the retail area which include two auto services, one laundry service, one financial service, one insurance provider, three medical/dental providers, one entertainment establishment and one other service establishment.

The Minnehaha and Lake and Hi-Lake retail areas are community-sized shopping areas that have 19 of the corridor’s 30 shopping goods stores. The other retail nodes are neighborhood shopping areas that serve the convenience needs of area residents. Retail development potential is limited by a lack of available sites. The ability to expand retail offerings will require redevelopment of existing buildings. Building Appearance

Retail building appearance in the Minnehaha-Hiawatha Corridor study area were rated using a windshield survey. Building appearance is important since it creates the shopper’s first impression of the individual business and contributes to the image of the shopping area. Building appearance was rated A, B, C and D, as shown in Table 2. A-rated buildings are new or recently renovated, well maintained that project a positive image. B-rated buildings are generally older with ordinary facades associated with a lower cost retail building or well maintained pre-WWII buildings. C-rated buildings can be of any age, but reflect deferred maintenance that detracts from their appearance. Ratings in this category are somewhat forgiving and some buildings could have received a D rating. Class D buildings are very unattractive and exhibit signs of exterior deterioration. Twenty storefronts, or 12.9 percent, received A ratings. Sixteen of these storefronts are located in the Hi-Lake area. Minnehaha and Lake and Hiawatha and 46th both have two A-rated buildings. About half (76 storefronts) of the buildings received B ratings. Fifty-seven storefronts (37 percent) were rated C. These buildings could become A- or B-rated buildings with well conceived façade improvements. Two buildings received D ratings indicating a need for significant improvements.

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Table 2

MINNEHAHA-HIAWATHA CORRIDOR STUDY AREARETAIL/SERVICE STOREFRONT CLASS RATINGS

Area A B C D Total

Hi-Lake 16 1 17Minnehaha & Lake 2 35 6 1 44Minnehaha North 6 7 13Minnehaha & 38th 9 18 27Minnehaha & 42nd 8 21 29Hiawatha & 46th 2 17 5 1 25 Total 20 76 57 2 155

Hi-Lake 94.1 % 5.9 % - % - % 11.0 %Minnehaha & Lake 4.5 79.5 13.6 2.3 28.4 Minnehaha North - 46.2 53.8 - 8.4 Minnehaha & 38th - 33.3 66.7 - 17.4 Minnehaha & 42nd - 27.6 72.4 - 18.7 Hiawatha & 46th 8.0 68.0 20.0 4.0 16.1 Total 12.9 % 49.0 % 36.8 % 1.3 % 100.0 %

Source: McComb Group, Ltd.

Store Front

Traffic Counts

The Minnehaha-Hiawatha Corridor study area is part of a major artery providing access to downtown Minneapolis, the Minneapolis-St. Paul Airport and southeast metro area. The corridor has high traffic volumes. About 75 percent of this traffic is on Hiawatha Avenue. LRT began operation in June 2004, which changed the commuter traffic patterns and added three LRT transit stations to the study area along with one park-n-ride facility at the Lake Street/Midtown Station. Traffic counts are highest on Hiawatha Avenue north of 26th Street, which recorded 50,000 trips in 2002 and decreased to 43,000 in 2004, a 7.3 percent decline, as shown in Table 3, which was due to LRT construction and road network construction. Traffic counts rebounded in 2006 to 51,000 after completion of the LRT. Traffic counts have decreased on Hiawatha Avenue through the study area, except for the area south of 26th Street. That area recorded 36,000 trips in 2002, decreased to 29,000 trips in 2004 during construction, and increased to 39,000 in 2006. Between 2002 and 2006, traffic counts on Hiawatha Avenue south of Lake Street have declined during construction, and have remained low since the end of construction. In 2002, average daily counts totaled 39,000 south of Lake Street, declined to 33,000 in 2004 and 31,500 in 2006. Traffic counts north of Minnehaha Parkway were 31,000 in 2002 and decreased to 23,000 in 2006. Traffic counts south of Minnehaha Parkway have seen similar decreases with 31,000 average daily counts in 2002, 27,500 in 2004 and 26,000 in 2006. Growth in average daily traffic counts for Minnehaha Avenue indicates a shift in traffic patterns. While Hiawatha Avenue Is seeing decreasing counts on a yearly basis, Minnehaha Avenue has recorded increasing trips.

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Table 3

MINNEHAHA-HIAWATHA CORRIDORAVERAGE DAILY TRAFFIC COUNTS: 2002, 2004 AND 2006

02-04 04-06Location 2002 2004 2006 Change Change

Hiawatha AvenueNorth of 26th St. 50,000 43,000 51,000 (7.3) % 8.9 %South of 26th St. 36,000 29,000 39,000 (10.2) 16.0 South of Lake St. 39,000 33,000 31,500 (8.0) (2.3) North of Minnehaha Pkwy. 31,000 32,000 23,000 1.6 (15.2) South of Minnehaha Pkwy. 31,000 27,500 26,000 (5.8) (2.8)

Minnehaha Avenue*South of Lake St. 10,800 10,800 12,400 (0.0) % 7.2 %North of 42nd St. 8,900 8,900 11,700 (0.0) 14.7 South of 42nd St. 8,280 8,750 11,000 2.8 12.1 South of 46th St. 4,200 5,400 7,800 13.4 20.2

* Minnehaha Avenue numbers are for 2003, 2005 and 2007.Source: Minnesota Department of Transportation.

Traffic counts on Minnehaha Avenue south of Lake Street increased from 10,800 trips in 2003 and 2005 to 12,400 trips in 2007, a 7.2 percent annual increase. Traffic also increased north of 42nd Street from 8,900 trips in 2003 and 2005 to 11,700 trips in 2007, a 14.7 percent growth rate. South of 42nd Street, traffic counts were 8,280 in 2003 and increased to 8,750 in 2005, a 2.8 percent increase, and further increased to 11,000 trips in 2007, a 12.1 percent annual growth rate. Traffic counts south of 46th Street have seen the largest increase along the corridor with a 20.2 percent increase in trips. Access

Commercial areas in the Minnehaha-Hiawatha Corridor study area are served by four major roadways: Hiawatha Avenue, Lake Street, 46th Street and Minnehaha Parkway. The Minnehaha/Lake retail area has excellent access from both Hiawatha Avenue and Lake Street. Access to businesses along Minnehaha Avenue from west of Hiawatha Avenue is limited by Hiawatha Avenue and its medians and the LRT line. Residents living west of Hiawatha can only cross Hiawatha the LRT line at Lake, 32nd, 35th, 38th, 42nd and 46th Street. Southbound traffic on Hiawatha Avenue are limited to these same intersections. Right turn in and out access to and from Hiawatha is also available at 33rd, 37th, 40th, 41st, 43rd and 45th Streets. This has had the effect of increasing traffic on these cross streets at Minnehaha Avenue and diminishing traffic at the other intersections. This is a change from historic access patterns. This access pattern reinforces commercial nodes at 38th, 42nd and 46th Streets. Transit service is provided by LRT and busses. LRT stations located at Lake, 38th and 46th Street and connecting bus routes focus passengers at those locations. Lake Street is served by four bus lines. Minnehaha Avenue is served by one bus line north of 42nd Street and two lines to the south. One bus line operates on both 38th and 42nd Streets, and three bus routes serve 46th Street.

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Chapter II

COMPETITIVE SHOPPING AREAS Minnehaha-Hiawatha Corridor retail and service establishments compete with a wide variety of shopping areas located around the Minnehaha-Hiawatha Corridor area, including Highland Park in St. Paul and 66th and Cedar in Richfield. Minnehaha-Hiawatha Corridor area residents have a number of choices for both convenience and shopping goods shopping needs, both in and around the Minnehaha-Hiawatha Corridor. These shopping areas provide various levels of convenience and shopping goods to area residents. Competitive shopping areas are shown on Map 3, summarized in Table 4 and described below.

♦ East Lake Street

East Lake Street convenience retail area located along Lake Street East from 27th Avenue South to West River Parkway includes a total of 86 retail and service establishments. Retail is represented by 39 retail stores including seven convenience retail providers, 19 food services restaurants, one convenience/gasoline station, seven shopping goods providers and five automobile sales or parts merchants. Services include 11 auto services, 11 personal care services, six medical offices, three dental offices, three financial offices, three laundry facilities, a real estate office, an insurance office, one recreation facility, one professional service and five other service providers. This area also includes the Minneapolis Public Library.

♦ West Lake Street

This retail area spans a one-mile stretch of Lake Street west of Hiawatha Avenue from Chicago Avenue to 21st Avenue South. Retail buildings in this area have seen years of change. Currently there are 56 retail stores and 24 service providers in this area. The largest retail categories include food service (17 establishments), apparel and accessories (11 establishments), other shopping goods (9 establishments) and food stores (8 establishments). Other retail establishments include four shopping goods stores, three auto sales, a drug store, liquor store, floral shop, and a convenience/gasoline station. West Lake Street service providers include nine personal care/personal services, five financial offices, three dental offices, two auto services, two laundry, one insurance, one entertainment and one lodging.

♦ Global Market

The Global Market is located north of East Lake Street between Elliot Avenue and 10th Avenue. This unique retail area features an enclosed internationally-themed public market. It contains approximately 41 retail establishments that feature fresh and prepared foods, restaurants, and other items from around the world. Food service is Global Market’s largest retail category with 14 limited food service restaurants and one full service restaurant. Other retail stores are represented by other shopping goods (13 stores), food stores (8 stores) and apparel/accessories stores (5 stores).

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Minneapolis

Mendota Heights

Mendota

Lilydale

W 46th St

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East Franklin

Global Market

West Lake

Cedar

26th

East Lake

42 & 46

Highland Park

South HiawathaNokomis

North Hiawatha

42 & 38

66th & Cedar

Retail Areas

0 0.4 0.8 1.2

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Map 3
Linda Oie
MINNEHAHA-HIAWATHA CORRIDOR COMPETITIVE RETAIL AREAS
Linda Oie
Copyright© 2008 by McComb Group, Ltd.
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Table 4

MINNEHAHA-HIAWATHA CORRIDOR COMPETITIVE RETAIL AREAS

E. Lake W. Lake Global East West 26th North South 42nd Ave 42nd Ave Highland 66th & Establishment Type Street Street Market Franklin Franklin Street Cedar Hiawatha Nokomis Hiawatha & 38th St & 46th St Park Cedar Total

CONVENIENCE RETAILFood 2 8 8 5 7 1 4 11 4 4 1 4 59Drug Store 1 1 1 1 1 1 6Liquor 1 1 1 1 1 3 1 9Hardware 1 1 1 1 1 5Floral 1 1 1 3Video 1 1 1 1 1 5

FOOD SERVICEFull Service 10 11 1 7 1 4 2 8 8 6 2 1 7 68Limited Service 9 6 14 4 7 2 5 11 11 1 70Drinking Establishments 1 1 2

CONVENIENCE/GASOLINEConvenience/Gasoline 1 1 2 1 3 2 3 2 15

SHOPPING GOODSGeneral Merchandise 1 1Variety 2 2 1 1 6Apparel/Accessories 1 11 5 2 2 21Furniture & Home Furnishings 1 1 2 4Electronics 1 1 3 1 6Other Shopping Goods 3 9 13 3 1 6 8 2 12 57Pre-Owned Merchandise 2 1 1 1 2 1 3 11

HOME IMPROVEMENTHome Improvement 1 1Lawn & Garden 1 1 2

AUTOMOTIVEAuto/RV Sales 3 3 2 8Auto Parts 2 1 1 4 Total Retail 39 56 41 27 20 7 12 39 38 24 4 2 49 5 363

SERVICESAuto Services 11 2 9 6 4 1 2 35Personal Care 11 8 3 2 1 10 8 4 3 10 60Personal Services 1 1 1 1 1 5Business Services 1 1Laundry/Dry Cleaning 3 2 1 1 1 3 1 1 2 15Financial 3 5 2 3 1 3 1 3 6 1 28Real Estate 1 1 3 1 6Insurance 1 1 1 2 5Medical 6 2 1 1 5 2 1 1 6 25Dental 3 3 2 2 1 2 1 1 15Entertainment/Recreation 1 1 1 2 1 3 4 1 3 17Professional Services 1 1 2 4Lodging 1 1 2Other Services 5 1 1 5 2 2 1 6 23Fraternal 1 1 2Government 1 1 2 4 Total Services 47 24 0 12 6 8 3 42 28 26 3 5 39 4 247

TOTAL 86 80 41 39 26 15 15 81 66 50 7 7 88 9 610Vacant 2 3 1 6 1 10 23

Source: McComb Group, Ltd.

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♦ East Franklin

East Franklin retail area includes a one mile section of Franklin Avenue, east from Hiawatha Avenue to 31st Avenue South. Retail and services within the East Franklin retail area include 27 retail stores and 12 service establishments. This area features 11 food service restaurants and 5 food stores. Additional retail includes four shopping goods stores, two convenience/gasoline stations, an auto parts store, a drug store, a liquor store, a hardware store and a video store. Services include three personal care providers, two financial offices, two medical offices, two dental offices, a laundry service, entertainment venue and a professional service office.

♦ West Franklin

The West Franklin retail area runs along Franklin Avenue, west from Hiawatha Avenue to Chicago Avenue. This retail area is about a half-mile long and includes 26 retail and service businesses. There are 20 retail establishments including an Aldi grocery store and a Snyder’s drug store. Additional retail includes six other food stores, seven limited service restaurants and one full service restaurant, two variety stores, a floral shop, and one other shopping goods store. Services include three financial offices, one learning center, a laundry service and one printing service.

♦ 26th Street

This retail area runs along both 25th Street East and 26th Street from Hiawatha Avenue to 35th Avenue South. In total, there are 15 retail and service establishments. Retail establishments include four full service restaurants, a drinking establishment, a liquor store and a food store. Services include two entertainment venues, two personal care providers, a laundry service, financial office, medical office and one fraternal facility.

♦ Cedar

The Cedar retail area is located along Cedar Avenue from 21st Street East to 29th Street East and includes 12 retail stores and three service establishments. The largest retail establishments are food stores and food service restaurants with four establishments each. Other retail stores include a hardware store, convenience/gasoline station, dollar store, and one electronics store. Services are limited in this area with one personal care provider, one medical office and one other service provider.

♦ North Hiawatha

This large retail area spaces west from Hiawatha Avenue to Bloomington Avenue and includes the area between 31st Street East to 39th Street East. North Hiawatha retail area has 39 retail stores and 42 service establishments. The largest retail categories include food (11 establishments), food service (13 establishments), and other shopping goods (6 establishments). Other retail providers include three convenience/gasoline stations, a video store, one variety store, two home furnishings stores, one pre-owned merchandise and one auto parts store.

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North Hiawatha services include ten personal care establishments, nine auto services, five medical offices, two dental offices, three laundry, three financial offices, one real estate office, two professional offices, a bowling alley, five other services and the post office.

♦ Nokomis

The Nokomis retail area covers a larger are west of Hiawatha Avenue and 34th Avenue South from 39th Street East to Crosstown and west to Bloomington Avenue South. Retail in this area is generally located on 28th Avenue South and 42nd Street East, with a concentration of retail on Cedar Avenue in the Lake Nokomis area. In total, there are 66 retail and service establishments in this area: 38 retail and 28 service. Food service, with 19 establishments, is the largest retail category in this area, followed by shopping goods with 11 stores. Other retail providers include four food stores, two convenience/gasoline stores, a drug store and a hardware store. Service providers include nine personal care/personal service, six auto service, three real estate offices, three entertainment venues, two medical offices, two other services, a financial office, an insurance office and a dental office.

♦ South Hiawatha

South Hiawatha retail area is triangular in shape with Hiawatha Avenue, 34th Avenue South and 54th Street South as its boundaries. This retail area has a total of 50 retail and service establishments. South Hiawatha retail includes six food service restaurants and one drinking establishment, four shopping goods stores, four food stores, three convenience/gasoline stations, two auto sales, a lawn and garden store, a liquor store, a hardware store and a video store. Service providers include five personal care/personal services providers, four auto services, four entertainment venues, three financial offices, two dental offices, two other services, a laundry service, a medical office, a fraternal facility and a lodging facility. In addition, the United States Post Office and the Public Library also are located in this retail area.

♦ 42nd Avenue and 38th Street

This small retail area extends from 41st Avenue South to just east of 42nd Avenue South and includes the area from 37th Street East to 39th Street East. This retail area has four retail establishments, two of which are full service restaurants. There is also a pre-owned merchandise store and a lawn and garden store. Service providers in this area include a medical office, movie theater and a shoe repair shop.

♦ 42nd Avenue and 46th Street

This small retail area, with seven retail and service establishments, extends along 42nd Avenue South from 43rd Street East on the north to south of 46th Street East. The two retail stores in this area include a food store and a full service restaurant. Service providers include three personal care establishments, one auto service shop, and a laundry/dry cleaning establishment.

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♦ Highland Park

The Highland Park retail area is the largest competitive retail cluster for the Minnehaha-Hiawatha Corridor. Highland Park is located east of the Mississippi River on 46th Street East. This retail area includes a 1.5 mile stretch of Ford Parkway from Woodland Avenue on the west to Snelling Avenue on the east. This retail area includes 49 retail establishments and 39 service providers. Retail includes some larger format stores such as Lunds, Snyder’s, Famous Footwear, and Barnes & Noble Booksellers, in addition to three other food stores, three liquor stores, and a video store. There are seven full service restaurants and 11 limited service restaurants, two convenience/gasoline stations and 18 additional shopping goods retailers. Service providers in this retail area include 11 personal care/personal service providers, six medical and one dental office, six financial offices, three entertainment providers, two laundry, two auto service, one business service, one real estate service, and six other service providers.

♦ 66th and Cedar

The 66th and Cedar retail area includes a one-half mile stretch of Cedar Avenue in Richfield from 63rd Street East to 67th Street East. This retail area contains nine establishments: five retail stores and four service providers. A SuperTarget and Home Depot anchor this area that also contains a liquor store, coffee shop and an electronics store. Services in this area include two insurance providers, a bank, and a dental office. This area has more vacant retail spaces (10) than occupied retail space.

Retail stores and services in the Minnehaha-Hiawatha Corridor have significant competition from stores in competitive retail areas. These areas contain a total of 363 retail stores with the largest concentrations West Lake Street (56 stores) and Highland Park (49 stores). There are 247 competitive services with significant concentrations on East Lake Street (47 services), North Hiawatha (42 services) and Highland Park (39 services). The 147 retail and service establishments in the Minnehaha-Hiawatha Corridor are competitive with 610 establishments in nearby shopping areas.

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Chapter III

RETAIL BUSINESS INTERVIEWS Interviews were attempted with 146 retail and service businesses within the Minnehaha-Hiawatha Corridor. In total, 114 retailers participated in the survey, 9 retailers refused and 23 could not be reached or did not return phone calls. A list of the interview participants is included in Table 21 at the end of this chapter. The primary purpose of the interviews was to determine opinions related to the strengths and weaknesses of the Minnehaha-Hiawatha Corridor area, solicit ideas and opinions regarding changes to retail within the corridor, and gather transit data on employees and customers. Reported survey results reflect the respondent’s personal opinions; they were not screened for accuracy. For purposes of this analysis retail businesses have been separated into three sub areas, which are shown on Map 4.

• Lake Street which includes the Minnehaha and Lake Street, and Hiawatha and Lake Street areas. This area (shown in light green) includes 36 completed surveys.

• Minnehaha North which includes Minnehaha North, and Minnehaha and 38th Street retail areas. This area (shown in blue) includes 33 completed surveys.

• Minnehaha South which includes Minnehaha and 42nd, and Hiawatha and 46th Street retail areas. This area (shown in pink) includes 45 completed surveys.

Year Store Opened

Although the Minnehaha-Hiawatha Corridor has a number of long-standing business establishments, 41 of the retailers interviewed, or 36 percent, said that they have been open for less than 8 years as shown in Table 5. The Lake Street area has the highest percentage of new retailers, followed by the Minnehaha North area.

Table 5

MINNEHAHA-HIAWATHA CORRIDOR RETAIL SURVEYSURVEY PARTICIPANTS YEAR OPENED

Hiawatha CorridorLake Street Minnehaha North Minnehaha South Total

Year Opened Number Percent Number Percent Number Percent Number Percent

Before 1920 0 - % 0 - % 1 2.2 % 1 0.9 %1920-1929 0 - 1 3.0 1 2.2 2 1.8 1930-1939 1 2.8 2 6.1 0 - 3 2.6 1940-1949 0 - 1 3.0 1 2.2 2 1.8 1950-1959 2 5.6 2 6.1 3 6.7 7 6.1 1960-1969 0 - 0 - 2 4.4 2 1.8 1970-1979 2 5.6 2 6.1 1 2.2 5 4.4 1980-1989 8 22.2 5 15.2 6 13.3 19 16.7 1990-1999 6 16.7 4 12.1 13 28.9 23 20.2 2000-2008 15 41.7 12 36.4 14 31.1 41 36.0 Don't Know 2 5.6 2 6.1 3 6.7 7 6.1 Other 0 - 2 6.1 0 - 2 1.8 Total Respondents 36 33 45 114 100.0 %

Source: McComb Group, Ltd.

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neapolis

Minnehaha North

Minnehaha & 38th

Minnehaha & 46th

Minnehaha & 42nd

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Retail BusinessInterviews

Minnehaha-Hiawatha CorridorLake Street

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Minnehaha South

0 0.2 0.4 0.6

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Linda Oie
Copyright© 2008 by McComb Group, Ltd.
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MINNEHAHA-HIAWATHA CORRIDOR RETAIL BUSINESS SURVEY SUB AREAS
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Map 4
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Reason for Choosing Location

In general, location and the area/neighborhood were the top answers to the question “Why did you choose this location?” as shown in Table 6. Top responses for retailers in the Lake Street area were area/neighborhood, high traffic area and demographics; while Minnehaha North retailers mentioned location, area/neighborhood, and rent/price/reasonable most frequently. For Minnehaha South, proximity to the owner/manager’s residence, location and existing business were most important. The high percentage of “other” represents a number of reasons that did not create a common thread between the retailers. Retailers that mentioned “don’t know” tended to be corporate stores that are not involved in those decisions, or managers that were unaware of the process. Verbatim responses for the reason for choosing this location are contained in the Appendix.

Table 6

MINNEHAHA-HIAWATHA CORRIDOR RETAIL SURVEYRESPONSES TO THE QUESTION: WHY DID YOU CHOOSE THIS LOCATION?*

Hiawatha CorridorLake Street Minnehaha North Minnehaha South Total

Response Number Percent Number Percent Number Percent Number PercentLocation 2 5.6 % 6 18.2 % 5 11.1 % 13 11.4 %Area/Neighborhood 4 11.1 5 15.2 3 6.7 12 10.5 Lives in Area 2 5.6 2 6.1 6 13.3 10 8.8 High Traffic in Area 5 13.9 2 6.1 3 6.7 10 8.8 Rent/Price/Reasonable 2 5.6 5 15.2 3 6.7 10 8.8 Existing Business 2 5.6 2 6.1 5 11.1 9 7.9 Available 1 2.8 3 9.1 4 8.9 8 7.0 Other Businesses in Area 3 8.3 1 3.0 3 6.7 7 6.1 Amount of Space 1 2.8 2 6.1 4 8.9 7 6.1 Demographics 4 11.1 1 3.0 0 - 5 4.4 Don't Know 8 22.2 2 6.1 3 6.7 13 11.4 Other 11 30.6 11 33.3 15 33.3 37 32.5 Total Number of Respondents 36 33 45 114

*Multiple responses were allowed.Source: McComb Group, Ltd.

Store Size

Table 7 shows the gross leasable area for the survey respondent stores. Thirty-six percent of the retailers that responded to this question had stores smaller than 2,000 square feet. Ninety-three percent of those that responded with a store size are less than 7,000 square feet indicating that shopping areas are populated by primarily small retailers. Over one-quarter of the respondents did not know their store size.

Table 7

MINNEHAHA-HIAWATHA CORRIDOR RETAIL SURVEYSURVEY PARTICIPANTS GLA

Hiawatha CorridorLake Street Minnehaha North Minnehaha South Total

GLA (Square Feet) Number Percent Number Percent Number Percent Number Percent

Less than 1,000 5 13.9 % 7 21.2 % 6 13.3 % 18 15.8 %1,000-1,999 7 19.4 5 15.2 11 24.4 23 20.2 2,000-3,999 1 2.8 7 21.2 9 20.0 17 14.9 4,000-6,999 6 16.7 7 21.2 5 11.1 18 15.8 7,000-9,999 1 2.8 0 - 0 - 1 0.9 10,000-19,999 0 - 0 - 2 4.4 2 1.8 20,000-29,999 0 - 0 - 0 - 0 - 30,000-39,999 1 2.8 0 - 0 - 1 0.9 40,000-49,999 0 - 0 - 0 - 0 - Over 50,000 2 5.6 0 - 0 - 2 1.8 Didn't Know 13 36.1 7 21.2 12 26.7 32 28.1 Total 36 100.0 % 33 100.0 % 45 100.0 % 114 100.0 %

Source: McComb Group, Ltd.

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Employment

Retail businesses responding to the survey employed 1,394 employees, as shown in Table 8. Actual employment is somewhat higher because not all businesses responded to the survey. Shopping goods stores employed 341 people or about one-quarter of total employment. Convenience goods ranked second with 273 employees or about 20 percent of all employment. Entertainment and recreation ranked third with 249 employees or 17.9 percent. Food service employed 232 people or 16.6 percent of the total. All of the other retail categories represented a smaller proportion of total employment.

Table 8

MINNEHAHA-HIAWATHA CORRIDOR EMPLOYEES BY RETAIL BUSINESS TYPE

Hi- Minnehaha Minnehaha Minnehaha Minnehaha HiawathaType Lake & Lake North & 38th & 42nd & 46th Total

Convenience Goods 5 156 - 11 12 89 273 Food Service 37 34 - 30 67 64 232 Shopping Goods 69 241 3 9 8 11 341 Home Improvement - - - - 37 - 37 Automotive 10 11 17 23 2 2 65 Services 9 6 15 12 39 10 91 Financial and Insurance 1 7 - 7 3 12 30 Medical/Dental - 46 15 - 5 10 76 Entertainment/Recreation 200 25 - 3 20 1 249 Total 331 526 50 95 193 199 1,394

Source: McComb Group, Ltd. Minnehaha and Lake had the highest employment at 526 representing 37.7 percent of employment. When the Hi-Lake area employment of 331 is added to this total, these two areas represent 60 percent of the retail employment. Both Minnehaha and 42nd, and Hiawatha and 46th have about 200 employees with each representing about 14 percent of the corridor’s employment. Employment at Minnehaha North and Minnehaha and 38th is smaller. Over half of the respondent stores had fewer than five employees, as shown in Table 9. In total, 11.4 percent of responding retailers had only one employee and another 18 percent had five to seven employees. Over 80 percent of Minnehaha North’s respondents had seven or fewer employees.

Table 9

MINNEHAHA-HIAWATHA CORRIDOR RETAIL SURVEYSURVEY PARTICIPANTS NUMBER OF EMPLOYEES

Hiawatha CorridorLake Street Minnehaha North Minnehaha South Total

Number of Employees Number Percent Number Percent Number Percent Number Percent1 3 8.3 % 4 12.1 % 6 13.3 % 13 11.4 %2-4 10 27.8 20 60.6 17 37.8 47 41.2 5-7 8 22.2 4 12.1 9 20.0 21 18.4 8-10 4 11.1 3 9.1 6 13.3 13 11.4 11-20 4 11.1 1 3.0 3 6.7 8 7.0 21-30 2 5.6 1 3.0 2 4.4 5 4.4 Over 30 5 13.9 0 - 2 4.4 7 6.1 Total 36 100.0 % 33 100.0 % 45 100.0 % 114 100.0 %

Source: McComb Group, Ltd.

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Employee Transit Use

Overall, 21 percent of respondents had employees that used transit to get to work (Table 10), while over 60 percent of respondents didn’t have any employees that used transit to get to work. Respondents from the Lake Street area (25 percent) and Minnehaha South (27 percent) were more likely to have employees that rode transit.

Table 10

MINNEHAHA-HIAWATHA CORRIDOR RETAIL SURVEYRESPONSES TO THE QUESTION: WHAT PERCENTAGE OF YOUR EMPLOYEES

USE TRANSIT (SUCH AS LRT OR BUS) TO GET TO WORK?

Hiawatha CorridorLake Street Minnehaha North Minnehaha South Total

Response Number Percent Number Percent Number Percent Number Percent

None 17 47.2 % 26 78.8 % 27 60.0 % 70 61.4 %1 to 9% 3 8.3 0 - 2 4.4 5 4.4 10 to 19% 0 - 1 3.0 2 4.4 3 2.6 20 to 29% 4 11.1 0 - 3 6.7 7 6.1 30 to 39% 2 5.6 2 6.1 3 6.7 7 6.1 Over 50% 0 - 0 - 2 4.4 2 1.8 Don't Know 7 19.4 3 9.1 2 4.4 12 10.5 Other 3 8.3 1 3.0 4 8.9 8 7.0 Total Number of Respondents 36 100.0 % 33 100.0 % 45 100.0 % 114 100.0 %

Source: McComb Group, Ltd. Customer Transit Use

Sixty percent of the respondents stated that some of their customers use transit to get to their business. The percentage of customers using transit by area is shown in Table 11. Almost 70 percent of the Lake Street retail area respondents believe that some of their customers use transit to get to their stores; while Minnehaha North and Minnehaha South believe 58 percent and 53 percent, respectively, use transit to get to their stores.

Table 11

MINNEHAHA-HIAWATHA CORRIDOR RETAIL SURVEYRESPONSES TO THE QUESTION: WHAT PERCENTAGE OF YOUR CUSTOMERS

USE TRANSIT (SUCH AS LRT OR BUS) TO GET TO YOUR BUSINESS?

Hiawatha CorridorLake Street Minnehaha North Minnehaha South Total

Response Number Percent Number Percent Number Percent Number Percent

None 1 2.8 % 4 12.1 % 10 22.2 % 15 13.2 %1 to 9% 4 11.1 3 9.1 11 24.4 18 15.8 10 to 19% 5 13.9 5 15.2 5 11.1 15 13.2 20 to 29% 3 8.3 7 21.2 5 11.1 15 13.2 30 to 39% 4 11.1 1 3.0 1 2.2 6 5.3 40 to 49% 0 - 0 - 0 - 0 - Over 50% 9 25.0 3 9.1 2 4.4 14 12.3 Don't Know 5 13.9 5 15.2 8 17.8 18 15.8 Other 5 13.9 5 15.2 3 6.7 13 11.4 Total Number of Respondents 36 33 45 114

Source: McComb Group, Ltd. Where Customers Live/Come From

The majority of the respondents (60 percent) believe that their customers are local and live in the neighborhood, as shown in Table 12. Twenty percent of respondents believe that their customers

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come from all over. Verbatim responses for where customers live/come from are contained in the Appendix.

Table 12

MINNEHAHA-HIAWATHA CORRIDOR RETAIL SURVEYRESPONSES TO THE QUESTION: WHERE DO YOUR CUSTOMERS LIVE/COME FROM?*

Hiawatha CorridorLake Street Minnehaha North Minnehaha South Total

Response Number Percent Number Percent Number Percent Number Percent

Local/Around Area/Neighborhood 17 47.2 % 21 63.6 % 30 66.7 % 68 59.6 %South Minneapolis 6 16.7 5 15.2 3 6.7 14 12.3 Minneapolis 2 5.6 3 9.1 2 4.4 7 6.1 Twin Cities 1 2.8 6 18.2 5 11.1 12 10.5 Suburbs 2 5.6 3 9.1 4 8.9 9 7.9 All Over 8 22.2 6 18.2 9 20.0 23 20.2 Other (incl. other comm.) 22 61.1 11 33.3 23 51.1 56 49.1 Total Number of Respondents 36 33 45 114

*Multiple responses were allowed.Source: McComb Group, Ltd.

Strengths of This Location for Your Business

Minnehaha-Hiawatha Corridor retailers believe that LRT, high traffic and proximity to both downtown Minneapolis and St. Paul are strengths of their location, as shown in Table 13. Lake Street retail area retailers also enjoy the presence of other businesses in the area; while Minnehaha North and Minnehaha South believe the neighborhood is a strength for their business. Transit-related responses were offered by 43 percent of the respondents. Verbatim responses for strengths of this location are contained in the Appendix.

Table 13

MINNEHAHA-HIAWATHA CORRIDOR RETAIL SURVEYRESPONSES TO THE QUESTION: WHAT ARE THE STRENGTHS OF THIS LOCATION FOR YOUR BUSINESS?*

Hiawatha CorridorLake Street Minnehaha North Minnehaha South Total

Response Number Percent Number Percent Number Percent Number Percent

LRT 10 27.8 % 6 18.2 % 7 15.6 % 23 20.2 %Traffic (high traffic) 7 19.4 5 15.2 8 17.8 20 17.5 Conveniently Located to Minneapolis-St. Paul 4 11.1 6 18.2 9 20.0 19 16.7 Neighborhood 0 - 9 27.3 9 20.0 18 15.8 Transit - not specific 6 16.7 5 15.2 4 8.9 15 13.2 Other businesses in area 9 25.0 2 6.1 2 4.4 13 11.4 On bus line 6 16.7 4 12.1 1 2.2 11 9.6 Good parking 2 5.6 1 3.0 7 15.6 10 8.8 Visibility 4 11.1 2 6.1 4 8.9 10 8.8 Like location (specific to bldg) 3 8.3 3 9.1 3 6.7 9 7.9 Easy access to interstates and major highways 3 8.3 2 6.1 3 6.7 8 7.0 Rent is cheap 1 2.8 3 9.1 2 4.4 6 5.3 History/well known 0 - 1 3.0 5 11.1 6 5.3 Population density 3 8.3 2 6.1 1 2.2 6 5.3 Other 24 66.7 17 51.5 24 53.3 65 57.0 Total Number of Respondents 36 33 45 114

*Multiple responses were allowed.Source: McComb Group, Ltd.

Weaknesses of This Location for Your Business

Crime was the most frequently mentioned weakness in the corridor, as shown in Table 14. Weaknesses varied by location. In the Lake Street area, crime, parking, panhandlers/vagrants, and demographics were mentioned most frequently. Most frequently mentioned weaknesses in the Minnehaha North area were no room to expand, crime and not enough business. Minnehaha

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South respondents mentioned LRT, need for more visibility and crime most frequently. Verbatim responses for weaknesses of this location are contained in the Appendix.

Table 14

MINNEHAHA-HIAWATHA CORRIDOR RETAIL SURVEYRESPONSES TO THE QUESTION: WHAT ARE THE WEAKNESSES OF THIS LOCATION FOR YOUR BUSINESS?*

Hiawatha CorridorLake Street Minnehaha North Minnehaha South Total

Response Number Percent Number Percent Number Percent Number Percent

Crime 7 19.4 % 3 9.1 % 6 13.3 % 16 14.0 %Parking 5 13.9 1 3.0 4 8.9 10 8.8 LRT 2 5.6 1 3.0 7 15.6 10 8.8 No Room to Expand 2 5.6 4 12.1 4 8.9 10 8.8 No Weaknesses 2 5.6 2 6.1 5 11.1 9 7.9 Not Enough Businesses 1 2.8 3 9.1 4 8.9 8 7.0 Visibility/Hidden 1 2.8 0 - 7 15.6 8 7.0 Neighborhood (tough) Demographics 4 11.1 2 6.1 1 2.2 7 6.1 Panhandlers/Vagrants 5 13.9 1 3.0 0 - 6 5.3 Don't Like Location 2 5.6 2 6.1 2 4.4 6 5.3 Too Much Low Income 1 2.8 2 6.1 3 6.7 6 5.3 Other 22 61.1 28 23 51.1 73 64.0 Total Number of Respondents 36 33 45 114

*Multiple responses were allowed.Source: McComb Group, Ltd.

Improvements to Area

In response to the question “What could be done to improve your business?” participating retailers would like more businesses in the area and fewer vacancies, better or more policing and the ability to do more advertising, as shown in Table 15. Additionally, each sub area has their own issues that they would like to see resolved. Retailers within the Lake Street area would like to see better/more policing, better and more parking, while Minnehaha North retailers would like to resolve issues with the City of Minneapolis. Minnehaha South retailers would like to see more businesses, signage and traffic/congestion issues resolved. Verbatim responses for improvements are contained in the Appendix.

Table 15

MINNEHAHA-HIAWATHA CORRIDOR RETAIL SURVEYRESPONSES TO THE QUESTION: WHAT COULD BE DONE TO IMPROVE YOUR BUSINESS?*

Hiawatha CorridorLake Street Minnehaha North Minnehaha South Total

Response Number Percent Number Percent Number Percent Number Percent

More Businesses/Less Vacancies 2 5.6 % 5 15.2 % 5 11.1 % 12 10.5 %Better/More Policing 9 25.0 0 - 1 2.2 10 8.8 Advertising 3 8.3 3 9.1 3 6.7 9 7.9 Nothing 4 11.1 1 3.0 4 8.9 9 7.9 Signage 2 5.6 1 3.0 5 11.1 8 7.0 Need Larger space 0 - 3 9.1 4 8.9 7 6.1 Don't know 3 8.3 3 9.1 1 2.2 7 6.1 More Business/More people 1 2.8 3 9.1 2 4.4 6 5.3 Better/More Parking 5 13.9 0 - 1 2.2 6 5.3 Resolve Congestion (traffic) Issues 0 - 1 3.0 4 8.9 5 4.4 Resolve City of Minneapolis Issues 1 2.8 4 12.1 0 - 5 4.4 Fewer Transients 4 11.1 1 3.0 0 - 5 4.4 Fewer Illegal Activities 3 8.3 1 3.0 1 2.2 5 4.4 Other 16 44.4 14 42.4 27 60.0 57 50.0 Total Number of Respondents 36 33 45 114

*Multiple responses were allowed.Source: McComb Group, Ltd.

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Sales Growth

Thirty-seven percent of respondents stated that their sales have increased since 2002. The range of increase was from one percent to over 50 percent is shown in Table 16. Ten percent of the respondents responded decreasing/down. About 16 percent of respondents have experienced flat, fluctuating or steady sales.

Table 16

MINNEHAHA-HIAWATHA CORRIDOR RETAIL SURVEYRESPONSES TO THE QUESTION: WHAT HAS BEEN YOUR PERCENT SALES GROWTH SINCE 2002?*

Hiawatha CorridorLake Street Minnehaha North Minnehaha South Total

Number Percent Number Percent Number Percent Number Percent

Up 3 8.3 % 4 12.1 % 6 13.3 % 13 11.4 %1-5% 4 11.1 1 3.0 2 4.4 7 6.1 6-10% 1 2.8 0 - 4 8.9 5 4.4 11-19% 0 - 0 - 1 2.2 1 0.9 20-34% 1 2.8 2 6.1 2 4.4 5 4.4 35-49% 1 2.8 1 3.0 1 2.2 3 2.6 Over 50% 3 8.3 4 12.1 1 2.2 8 7.0 Flat 2 5.6 1 3.0 6 13.3 9 7.9 Steady 1 2.8 3 9.1 3 6.7 7 6.1 Fluctuates 1 2.8 2 6.1 0 - 3 2.6 Decreasing/Down 2 5.6 5 15.2 5 11.1 12 10.5 Too New 1 2.8 1 3.0 0 - 2 1.8 Don't Know 11 30.6 3 9.1 6 13.3 20 17.5 Refused 0 - 0 - 2 4.4 2 1.8 Other 2 5.6 3 9.1 2 4.4 7 6.1 No Response 3 8.3 3 9.1 4 8.9 10 8.8 Total Number of Respondents 36 100.0 % 33 100.0 % 45 100.0 % 114 100.0 %

* Includes stores that opened later than 2002.Source: McComb Group, Ltd.

Plans for Change to Business

Currently, over 40 percent of survey respondents do not have any plans for changes to their business within the next three years, as shown in Table 17. Eleven percent are considering a product or service change and 8.8 percent would like to grow, with another 5.3 percent wanting to grow but can’t. Verbatim responses for plans for change to business are contained in the Appendix.

Table 17

MINNEHAHA-HIAWATHA CORRIDOR RETAIL SURVEYRESPONSES TO THE QUESTION: DO YOU HAVE ANY PLANS FOR CHANGES TO YOUR BUSINESS IN THE NEXT 3 YEARS?*

Hiawatha CorridorLake Street Minnehaha North Minnehaha South Total

Response Number Percent Number Percent Number Percent Number Percent

No/None 17 47.2 % 7 21.2 % 24 53.3 % 48 42.1 %Product/Service Change 5 13.9 5 15.2 3 6.7 13 11.4 Want to Grow 3 8.3 5 15.2 2 4.4 10 8.8 Renovate/Remodel 5 13.9 1 3.0 1 2.2 7 6.1 Don't Know 3 8.3 1 3.0 3 6.7 7 6.1 Maybe - Nothing Firm 2 5.6 1 3.0 3 6.7 6 5.3 Need to Enlarge, But Can't 2 5.6 4 12.1 0 - 6 5.3 Small Exterior Changes 0 - 3 9.1 2 4.4 5 4.4 Other 5 13.9 11 33.3 8 17.8 24 21.1 Total Number of Respondents 36 33 45 114

*Multiple answers were allowed.Source: McComb Group, Ltd.

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Business Needs

Respondents were asked if their current location meets their current and future business needs. Eighty-three percent of respondents felt that their store met their current needs, as shown in Table 18. Almost 65 percent of respondents (Table 19) felt that their current store will also meet their future business needs. Of the 23 percent (or 26 respondents) of respondents who didn’t feel their current location would meet their future needs, half of them felt that they would need more space in the future. Other future needs included wanting to move to an area with more traffic and needing to grow their business financially. Other needs are listed on Table 20 and verbatim responses are contained in the Appendix.

Table 18

MINNEHAHA-HIAWATHA CORRIDOR RETAIL SURVEYRESPONSES TO THE QUESTION: DOES YOUR STORE MEET YOUR CURRENT BUSINESS NEEDS?

Hiawatha CorridorLake Street Minnehaha North Minnehaha South Total

Response Number Percent Number Percent Number Percent Number Percent

Yes 32 88.9 % 24 72.7 % 38 84.4 % 94 82.5 %No 4 11.1 8 24.2 7 15.6 19 16.7 Don't Know/Maybe 0 - 1 3.0 0 - 1 0.9 Total Number of Respondents 36 100.0 % 33 100.0 % 45 100.0 % 114 100.0 %

Source: McComb Group, Ltd.

Table 19

MINNEHAHA-HIAWATHA CORRIDOR RETAIL SURVEYRESPONSES TO THE QUESTION: DOES YOUR STORE MEET YOUR FUTURE BUSINESS NEEDS?

Hiawatha CorridorLake Street Minnehaha North Minnehaha South Total

Response Number Percent Number Percent Number Percent Number Percent

Yes 27 75.0 % 18 54.5 % 29 64.4 % 74 64.9 %No 5 13.9 13 39.4 8 17.8 26 22.8 Don't Know/Maybe 4 11.1 2 6.1 8 17.8 14 12.3 Total Number of Respondents 36 100.0 % 33 100.0 % 45 100.0 % 114 100.0 %

Source: McComb Group, Ltd.

Table 20

MINNEHAHA-HIAWATHA CORRIDOR RETAIL SURVEYRESPONSES TO THE QUESTION: WHAT WILL YOU NEED IN THE FUTURE?*

Hiawatha CorridorLake Street Minnehaha North Minnehaha South Total

Response Number Percent Number Percent Number Percent Number Percent

Need more space 4 80.0 % 4 30.8 % 5 62.5 % 13 50.0 %Need to grow 0 - 4 30.8 0 - 4 15.4 Move to Area With More Traffic/Businesses 0 - 1 7.7 2 25.0 3 11.5 Will meet future needs/hopes so 0 - 0 - 1 12.5 1 3.8 Parking 1 20.0 0 - 0 - 1 3.8 Nothing in the works - thinking stages 0 - 1 7.7 0 - 1 3.8 Need Advertising 0 - 1 7.7 0 - 1 3.8 Wants another location (additional) 0 - 1 7.7 0 - 1 3.8 Moving 0 - 1 7.7 0 - 1 3.8 Lower Taxes 0 - 0 - 1 12.5 1 3.8 More Customers 0 - 0 - 1 12.5 1 3.8 Other 0 - 1 7.7 0 - 1 3.8 No Comment 0 - 0 - 1 12.5 1 3.8 Total Number of Respondents 5 100.0 % 13 100.0 % 8 100.0 % 26 100.0 %

* Multiple answers were allowed.Source: McComb Group, Ltd.

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Table 21

MINNEHAHA-HIAWATHA CORRIDORRETAIL BUSINESS INTERVIEW PARTICIPANTS BY AREA

Lake StreetAspen Medical All Specialists Kevin Fox & Assoc. - Fox ConsultingAuto Max - Auto Service Liberty TaxBest Wireless Little CaesarsBlockbuster Minnehaha Lake Wine & SpiritsCost Cutters O'Reilly Auto PartsCub Foods Parts PlusDiamond Home Health Care Patrick's CabaretDiamond Horseshoe Barber Payless ShoesDominos Radio ShackEnterprise Community Investment Sally Beauty SupplyFamily Dollar Store SaversGet It Now Furniture Schooner BarGlass Endeavors SubwayHi-Lake Liquor TargetHub Bicycle Co-Op To New YorkI Spot Clothing Vision WorldICC Int'l Communications Co YWCAJay Clip Salon Zoronge Flamenco Dance Theater

Minnehaha North38th Street Flowers Martins Auto RepairAlexander's Import Auto Repair Midwest Window CoAlexander's Import Auto Repair Olson Paint And Body Collision ServicesArticulture Paint LiquidatorsB&B Auto Repair Paris AntiquesBest Body Shop Permanent Solutions SalonBradshaw Funeral Public StorageBrunners & Bunin & Assoc Rail StationBudget Rental Ready 2 KutFamily Dental Care Of South Minneapolis Roys Motorcycle RepairFire Roast Mountain Cafe Sandberg Imported Repair IncFlash Ke Nails Selam Coffee ShopGiant Valley American Legion Shegstad & SonsGift Baskets and Designs By Dee Super USAGift Shop Co-Op Tapestry Folk Dance CenterKeys For Kids VW Audi South Central ImportsLifes Headwaters

Minnehaha South42nd Street Gifts McDonaldsAll State Insurance Mings PalaceAM PM Electric Mini ExpressB&B Supply Minnehaha CafeBallare Tetatro Dance Minnehaha Falls Garden StoreBody Repair Minnehaha YogaBridgemans Embers MN Best Made CookiesCraig Teiken Golf Natural TherapeuticsDave H Larson Photography Studio Inc. Pink ClosetDomino's Research Attorneys, Inc.Dr. Joan Jacubic Dentist River Parkway ChiropracticFalls Hardware Snap FitnessFamily Dentistry - Dr. Johnson Bruss Sonus HearingFor Pets Sake Sosa FoodsGellar Automotive & Gasoline Pumps State Farm InsuranceGregs Automotive Strapko Pahl Ltd.H&R Block SubwayHiawatha Alterations Taylors Star One AutoHiawatha Falls Liquor Tool Warehouse Inc.Hiawatha Joe US 279 CleanersHiawatha Lumber Visual Expressions Graphic Design, Inc.Hiawatha Reddy Rents Walgreens PharmacyHoliday Convenience Store

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Chapter IV

MINNEHAHA-HIAWATHA CORRIDOR TRADE AREAS The Minnehaha-Hiawatha Corridor retail areas serve a large portion of south Minneapolis east of I-35W. The five retail nodes serve four trade areas shown on Map 5. These trade areas were delineated by McComb Group based on the location of competitive shopping areas, arterial road network, natural boundaries, and previous experience. The Mississippi River forms the eastern boundary of all trade areas. Customers from St. Paul that shop in the retail areas are considered inflow sales. Minnehaha/Lake trade area (black line) covers a large area that extends from downtown Minneapolis and follows I-35W to Lake Street and then to Minnehaha Parkway on the south. This trade area was reduced in size by the recently opened SuperTarget in Richfield. Residents of this trade area are estimated to account for 70 percent of retail sales. The other three trade areas: Minnehaha North, Minnehaha and 38th Street, and 42nd and 46th Street overlap, as shown on Map 5. These trade areas relate to their respective retail areas and are analyzed separately. The Minnehaha North trade area extends south from 27th Street East to 41st Street East, west to 15th Avenue South and east to the Mississippi River. Minnehaha and 38th Street trade area is the area generally bound by Lake Street on the north, 15th Avenue South to the west, Minnehaha Parkway to the south and the Mississippi River to the east. This trade area had the largest population due to its central location. The 42nd and 46th Street trade area extends south from 36th Street East, west to Cedar Avenue, south to the Crosstown area and east to the Mississippi River. Residents of these trade areas were estimated to represent 50 to 70 percent of retail areas sales depending on the merchandise category. Due to the overlapping nature of these trade areas, businesses serve customers living in other trade areas. As a result, the Hiawatha trade area, shown on Map 6, was delineated to encompass all three trade areas. Hiawatha trade area residents are estimated to account for 75 percent of retail sales. The other 25 percent of sales are inflow sales from customers living outside the trade area. This trade area extends from 27th Street on the north, 15th Avenue on the west to the Crosstown highway on the south. Population and Households

Population and household growth trends for each of the trade areas are shown in Table 22. These trade areas represent mature neighborhoods and have experienced very little change in population or households since 1990. Population and household growth were less than one percent annually in the Minnehaha/Lake trade area, Minnehaha North trade area and Minnehaha and 38th Street trade area between 1990 and 2000. The 42nd & 46th Street and Hiawatha trade areas experienced modest declines in population and households. Since 2000, all of the trade areas have been experiencing population and household growth rates of less than one percent.

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Minneapolis

E 46th St

E 35th St

E 24th St

E Lake St

E 38th St

E 46th St

E Minnehaha Pkwy

Minnehaha/Lake

Minnehaha North

Minnehaha & 38th

42nd

46th

42nd & 46th Trade Area

Minnehaha & 38th Trade AreaMinehaha North Trade Area

Minnehaha/Lake Trade Area

0 0.4 0.8 1.2

Scale: 1" = 0.85 miles

Map produced w

ith Scan/U

S

09/29/08

Linda Oie
Map 5
Linda Oie
MINNEHAHA-HIAWATHA CORRIDOR TRADE AREAS
Linda Oie
Copyright© 2008 by McComb Group, Ltd.
SMN
27
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Minneapolis

E 46th St

I-35/

US-

65

Crosstown Hwy/SR-62

E 35th St

E 24th St

E Lake St

E 38th St

E 54th St

E 46th St

Ced

ar A

ve S

E Minnehaha Pkwy

I-94/US-12

Minnehaha/Lake

Minnehaha North

Minnehaha & 38th

42nd

46th

Hiawatha Trade Area

0 0.4 0.8 1.2

Scale: 1" = 0.85 miles

Map produced w

ith Scan/U

S

10/01/08

Linda Oie
Map 6
Linda Oie
HIAWATHA TRADE AREA
Linda Oie
Copyright © 2008 by McComb Group, Ltd.
SMN
28
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Population and household estimates for 2007 reflect loss of population due to foreclosures and increases resulting from occupancy of new buildings. Estimates for 2012 assume that foreclosed homes are re-occupied, vacant new construction buildings are rented or sold, and a modest amount of new construction occurs in the Hiawatha LRT corridor as the housing market recovers.

Table 22

MINNEHAHA-HIAWATHA CORRIDOR TRADE AREASPOPULATION AND HOUSEHOLDS

1990 AND 2000 CENSUS; 2007 AND 2012 ESTIMATED

Trade AreaMinnehaha/ Minnehaha Minnehaha & 42nd &

Year Lake North 38th Street 46th Street Hiawatha

Population1990 81,689 28,870 32,507 25,490 49,534 2000 89,658 29,810 32,847 24,301 49,296 2007 E 88,569 30,826 33,863 25,317 50,072 2012 E 89,871 31,878 34,915 26,369 51,334

Annual Growth Rate1990-2000 0.94 % 0.32 % 0.10 % (0.48) % (0.05) %2000-2007E (0.17) 0.48 0.44 0.59 0.22 2007E - 2012E 0.29 0.67 0.61 0.82 0.50

Households1990 34,473 12,341 14,055 10,953 21,261 2000 35,382 12,353 14,274 10,773 20,998 2007 E 35,020 13,000 14,921 11,420 21,610 2012 E 35,690 13,570 15,491 11,990 22,264

Annual Growth Rate1990-2000 0.26 % 0.01 % 0.15 % (0.17) % (0.12) %2000-2007E (0.15) 0.73 0.64 0.84 0.41 2007E - 2012E 0.38 0.86 0.75 0.98 0.60

E: Estimated.Source: U.S. Census, Scan/US and McComb Group, Ltd.

Minnehaha/Lake trade area population grew by 0.94 percent annually from 1990 to 2000, increasing the population from 81,689 to 89,658. From 2000 to 2007, population is estimated to have declined from 89,658 to 88,569, a 0.17 percent annual decrease. It is estimated that this area’s population will increase at 0.29 percent per year until 2012, increasing the population to 89,871. Households in this area changed at similar rates. In 1990, households totaled 34,473 and increased at 0.26 percent to 35,382 by 2000. From 2000 to 2007, households decreased by 0.15 percent to 35,020 and are estimated that households in this trade area will increase to 35,690 by 2012. Hiawatha trade area population decreased slightly at a rate of 0.05 percent from 49,534 people in 1990 to 49,296 people in 2000. Population growth rates increased to 0.22 percent from 2000 to 2007 and the growth rate for 2007 to 2012 is estimated at 0.50 percent, increasing the trade area

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population to 51,334 by 2012. Households within this area have also changed at similar rates. Households totaled 21,261 in 1990 and decreased to 20,998 in 2000, an annual change of -0.12 percent. From 2000 to 2007, households increased by 0.41 percent to 21,610 and is expected that households will total 22,264, an increase of 0.60 percent from 2007 to 2012. Household density in the Minnehaha-Hiawatha Corridor trade areas and surrounding neighborhoods is shown on Map 7. Household density is generally higher in the western portion of the Minnehaha/Lake trade area and the central portion of the Hiawatha trade area. Pockets of higher density are also dispersed throughout the study area. Household Income

Average household income for each of the trade areas is shown in Table 23. The highest average and median household incomes occur in the 42nd and 46th Street trade area. The lowest average and median household incomes occur in the Minnehaha/Lake trade area. Average household income for this trade area was $42,101 in 2000, increased to $44,738 in 2007 and is expected to reach $47,815 by 2012. Median household incomes were $33,643 in 2000, increasing to $39,798 in 2007 and estimated to increase to $43,603 by 2012.

Table 23

MINNEHAHA-HIAWATHA CORRIDOR TRADE AREASAVERAGE AND MEDIAN HOUSEHOLD INCOME

1990 AND 2000 CENSUS; 2007 AND 2012 ESTIMATED

Trade AreaMinnehaha/ Minnehaha Minnehaha & 42nd &

Year Lake North 38th Street 46th Street Hiawatha

Average Household Income1990 26,134$ 30,200$ 32,052$ 34,268$ 32,144$ 2000 42,101 50,270 53,126 55,105 52,494 2007 E 44,738 53,613 56,073 60,795 57,113 2012 E 47,815 57,493 60,337 65,142 61,147

Median Household Income1990 22,249$ 26,738$ 28,989$ 31,122$ 28,937$ 2000 33,643 41,353 44,129 46,342 43,553 2007 E 39,798 49,278 52,743 55,373 51,986 2012 E 43,603 54,240 57,855 60,750 57,041

E: Estimated.Source: U.S. Census, Scan/US and McComb Group, Ltd.

Hiawatha trade area household incomes were $52,494 in 2000, increasing to $57,113 in 2007 and further expected to increase to $61,147 by 2012. Median household incomes for this area are also increasing from $43,553 in 2000 to $51,986 in 2007 and $57,041 in 2012. Average and median household incomes disguise the fact that each of these trade areas have more affluent households.

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Minneapolis

Port

land

Ave

S

E 43rd St

Crosstown Hwy/SR-62

E Minnehaha Pkwy

W 33rd St

Lynd

ale

Ave

S

E Franklin Ave

E Lake St

E 38th St

E 54th St

E 46th St

E 40th StC

edar

Ave

S

E 51st St

28th

Ave

S

E 34th St

E 32nd St

E 35th StW Summit Ave

N F

ry S

t

Minnehaha/Lake

Minnehaha North

Minnehaha & 38th

42nd

46th

2012 Household DensityMinnehaha/Lake Trade AreaHiawatha Trade Area

Density per Sq.Mi (thous.)

0.001 - 0.999

0.999 - 2.00

2.00 - 3.00

3.00+

0 0.4 0.8 1.2

Scale: 1" = 0.84 miles

Map produced w

ith Scan/U

S

09/29/08

Linda Oie
Map 7
Linda Oie
MINNEHAHA/LAKE AND HIAWATHA TRADE AREAS HOUSEHOLD DENSITY; 2012
Linda Oie
Copyright© 2008 by McComb Group, Ltd.
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The proportion of trade area households with incomes above $75,000 and $100,000 are shown in Table 24. The 42nd and 46th Street trade area has the highest proportion of households with incomes above $75,000 and $100,000. In 2007, 31.7 percent of the households had incomes above $75,000 and is estimated to increase to 37.5 percent by 2012. Households with incomes above $100,000 in 2007 were 15.9 percent for this trade area and is estimated to be 22.1 percent by 2012.

Table 24

MINNEHAHA-HIAWATHA CORRIDOR TRADE AREASHOUSEHOLD INCOME DISTRIBUTION

1990 AND 2000 CENSUS; 2007 AND 2012 ESTIMATED

Trade AreaMinnehaha/ Minnehaha Minnehaha & 42nd &

Year Lake North 38th Street 46th Street Hiawatha

Households above $75,0001990 2.9 % 3.3 % 3.9 % 4.5 % 3.8 %2000 12.6 16.3 18.3 20.7 18.3 2007 E 19.8 25.6 28.6 31.7 28.4 2012 E 24.1 31.1 34.5 37.5 34.1

Households above $100,0001990 1.1 % 1.5 % 1.4 % 1.5 % 1.4 %2000 5.1 6.3 7.0 7.9 7.1 2007 E 9.6 12.6 14.1 15.9 14.0 2012 E 13.3 17.5 19.6 22.1 19.5

E: Estimated.Source: U.S. Census, Scan/US and McComb Group, Ltd.

Hiawatha trade area proportion of households with incomes above $75,000 was 18.3 percent in 2000, increased to 28.4 percent in 2007 and is estimated to increase to 34.1 percent in 2012. Households with incomes above $100,000 were 7.1 percent in 2000, increased to 14.0 percent in 2007 and is estimated to increase to 19.5 percent in 2012. The Minnehaha/Lake trade area distribution of household incomes is much lower than that of the other trade areas. Households with incomes above $75,000 represented 19.8 percent of trade area households in 2007 and are estimated to reach 24.1 percent by 2012. Households with incomes above $100,000 were 9.6 percent in 2007 and are estimated to increase to 13.3 percent by 2012. Trade area number of households with incomes above $75,000 and $100,000 is shown in Table 25. Minnehaha/Lake trade area is the largest trade area and it also has the highest number of households with incomes over $75,000 and $100,000 for 2007 and 2012. In 2007, an estimated 6,946 trade area households had incomes above $75,000. This is expected to increase to 8,603 in 2012. Minnehaha/Lake trade area households with household incomes above $100,000 were estimated at 3,388 in 2007 and are expected to increase to 4,763 in 2012. The Hiawatha trade area had an estimated 6,136 households with incomes above $75,000 in 2007 and is expected to increase to 7,589 in 2012. Households with incomes above $100,000 totaled 3,024 in 2007 and are estimated to increase to 4,349 in 2012.

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Table 25

MINNEHAHA-HIAWATHA CORRIDOR TRADE AREASHOUSEHOLD INCOME DISTRIBUTION

1990 AND 2000 CENSUS; 2007 AND 2012 ESTIMATED

Trade AreaMinnehaha/ Minnehaha Minnehaha & 42nd &

Year Lake North 38th Street 46th Street Hiawatha

Households above $75,0001990 971 408 547 494 818 2000 4,459 2,018 2,622 2,239 3,821 2007 E 6,946 3,323 4,268 3,625 6,136 2012 E 8,603 4,215 5,340 4,510 7,589

Households above $100,0001990 368 183 196 168 301 2000 1,803 781 1,006 858 1,472 2007 E 3,388 1,629 2,107 1,822 3,024 2012 E 4,763 2,372 3,034 2,658 4,349

E: Estimated.Source: U.S. Census, Scan/US and McComb Group, Ltd.

Distribution of households with projected 2012 incomes above $75,000 is shown on Map 8. This map demonstrates that in much of the trade area, 25 to 50 percent of affluent households are distributed in the eastern portion of the trade area and south of 38th Street with a higher concentration west of the Mississippi River between 34th and 41st Streets. Distribution of households with projected 2012 incomes above $100,000 is shown on Map 9. Ethnic Diversity

Both the Minnehaha/Lake and Hiawatha trade areas have diverse racial and ethnic population distributions, as shown in Table 26 for 2007. While Caucasians are the dominant race in the Minnehaha/Lake trade area, there are significant representations of African Americans (21.9 percent), Hispanic (19.9 percent) and other races (17.1 percent). This diversity is also represented in the Hiawatha trade area with Hispanics (13.7 percent), African American (11.1 percent) and other races (11.8 percent). This diversity indicates the potential for ethnic businesses that appeal to a broad range of customers.

Table 26

MINNEHAHA-HIAWATHA CORRIDOR TRADE AREASRACE AND ETHNICITY; 2007 ESTIMATED

Trade AreaMinnehaha/ Minnehaha Minnehaha & 42nd &

Race and Ethnicity Lake North 38th Street 46th Street Hiawatha

Caucasian 51.2 % 64.3 % 70.8 % 79.6 % 70.5 %African American 21.9 13.3 11.0 8.2 11.1 Native American 3.5 3.0 2.3 1.8 2.3 Asian/Pacific Islander 6.3 4.7 4.1 3.3 4.3 Other Races 17.1 14.8 11.9 7.0 11.8 Hispanic (Any Race) 19.9 17.8 12.9 6.0 13.7

Source: U.S. Census, Scan/US, Inc. and McComb Group, Ltd.

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Minneapolis

Port

land

Ave

S

E 43rd St

Crosstown Hwy/SR-62

E Minnehaha Pkwy

W 33rd St

Lynd

ale

Ave

S

E Franklin Ave

E Lake St

E 38th St

E 54th St

E 46th St

E 40th StC

edar

Ave

S

E 51st St

28th

Ave

S

E 34th St

E 32nd St

E 35th StW Summit Ave

N F

ry S

t

Minnehaha/Lake

Minnehaha North

Minnehaha & 38th

42nd

46th

2012 Percent ofHouseholds

Minnehaha/Lake Trade AreaHiawatha Trade Area

White: No Data Industrial/Park/Cemetery

1 to 25% of HHs have Incomes Above $75,00025 to 50% of HHs have Incomes Above $75,00050 to 75% of HHs have Incomes Above $75,00075 to 100% of HHs have Incomes Above $75,000

0 0.4 0.8 1.2

Scale: 1" = 0.84 miles

Map produced w

ith Scan/U

S

09/29/08

Linda Oie
Copyright© 2008 by McComb Group, Ltd.
Linda Oie
Map 8
Linda Oie
MINNEHAHA/LAKE AND HIAWATHA TRADE AREAS 2012 HOUSEHOLD INCOME: PERCENT ABOVE $75,000
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Minneapolis

Port

land

Ave

S

E 43rd St

Crosstown Hwy/SR-62

E Minnehaha Pkwy

W 33rd St

Lynd

ale

Ave

S

E Franklin Ave

E Lake St

E 38th St

E 54th St

E 46th St

E 40th StC

edar

Ave

S

E 51st St

28th

Ave

S

E 34th St

E 32nd St

E 35th StW Summit Ave

N F

ry S

t

Minnehaha/Lake

Minnehaha North

Minnehaha & 38th

42nd

46th

2012 Percent ofHouseholds

Minnehaha/Lake Trade AreaHiawatha Trade Area

White: No Data Industrial/Park/Cemetery

1 to 25% of HHs have Incomes Above $100,00025 to 50% of HHs have Incomes Above $100,00050 to 75% of HHs have Incomes Above $100,00075 to 100% of HHs have Incomes Above $100,000

0 0.4 0.8 1.2

Scale: 1" = 0.84 miles

Map produced w

ith Scan/U

S

09/29/08

Linda Oie
Copyright© 2008 by McComb Group, Ltd.
Linda Oie
Map 9
Linda Oie
MINNEHAHA/LAKE AND HIAWATHA TRADE AREAS 2012 HOUSEHOLD INCOME: PERCENT ABOVE $100,000
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Demographic Characteristics

Demographic characteristics for the Minnehaha/Lake and Hiawatha trade areas are summarized in the demographic snapshots contained in Tables 27 and 28. These snapshots contain census data for 1990 and 2000, as well as estimates for 2007 and 2012. These estimates were provided by Scan/US, Inc., a source of demographic information. Significant characteristics of the trade areas include the following:

♦ Minnehaha/Lake Trade Area

o Population is younger with a median age of 34 in 2007.

o Households with incomes above $75,000 are estimated at 8,603 in 2012.

o Over 53 percent of population is between the ages of 25 and 65 in 2007.

o This trade area is more ethnically diverse with 48.8 percent of the population of a race other than Caucasian in 2007.

o Only 9.5 percent of the population was 65 or older in 2007.

♦ Hiawatha Trade Area

o Median age of 39 in 2007.

o Thirty-four percent of the households are expected to have incomes above $75,000 in 2012.

o Sixty percent of the population is between the ages of 25 and 65 in 2007.

o Almost one-quarter of the population is less than 19 years of age in 2007.

o Twelve percent of the population is over 65 in 2007.

o Seventy percent of population is Caucasian. Additional demographic characteristics for the Minnehaha/Lake and Hiawatha trade areas are compared with the City of Minneapolis and Hennepin County in the Appendix. LRT Retail Potential

Light rail patrons are considered by some to create demand for retail stores and services at or near LRT stations. To quantify LRT benefits, estimated annual boardings at the three LRT stations in the Minnehaha-Hiawatha Corridor study area for 2005, 2006 and 2007 were obtained from the Metropolitan Council and are contained in Table 29. LRT boardings have increased steadily and in 2007 ranged from 820,000 at the Lake Street station to 510,000 at the 38th Street station. Annual rates of growth are significant, ranging from 9.8 percent at 38th Street to 17.4 percent and 18.9 percent, respectively, at 46th Street and Lake Street stations. Annual boardings were analyzed to determine average weekday and average weekend day boardings for each station. Of the annual boardings, 85 percent were assumed to occur on weekdays and 15 percent to occur on weekend days. Weekend ridership is heavily influenced by events in downtown Minneapolis. These LRT boardings include passengers beginning their journey at the LRT station as well as those that transfer from buses. Ridership is highest at the Lake Street station, which provides the greatest opportunity for bus transfers and is also served

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Table 27

DEMOGRAPHIC AND INCOME SNAPSHOT

Minnehaha/Lake Trade Area 11/26/2008

SNAPSHOT 1990 Census 2000 Census 2007 Estimated 2012 ProjectedPopulation 81,689 89,658 88,569 89,871Households 34,473 35,382 35,020 35,690Families 17,157 17,372 16,955 17,135Per Capita Income $ 11,243 $ 17,206 $ 19,495 $ 21,160Median Household Income $ 22,249 $ 33,643 $ 39,798 $ 43,603Average Household Income $ 26,134 $ 42,101 $ 44,738 $ 47,815Average Household Size 2.26 2.40 2.38 2.36Median Age 32 32 34 35

Annual Percent ChangeTRENDS 1990 - 2000 2000 - 2007 2007 - 2012Population 0.94 % -0.17 % 0.29 %Households 0.26 -0.15 0.38Families 0.12 -0.35 0.21Median Household Income 4.22 2.43 1.84Average Household Income 4.88 0.87 1.34

1990 Census 2000 Census 2007 Estimated 2012 ProjectedHOUSEHOLDS BY INCOME Number Percent Number Percent Number Percent Number PercentLess than $15,000 12,258 35.6 % 8,099 22.9 % 6,846 19.5 % 6,438 18.0 %$15,000 - $24,999 7,414 21.5 5,722 16.2 4,590 13.1 4,261 11.9$25,000 - $34,999 5,396 15.7 5,097 14.4 4,708 13.4 4,242 11.9$35,000 - $49,999 5,540 16.1 5,807 16.4 5,453 15.6 5,405 15.1$50,000 - $74,999 2,895 8.4 6,197 17.5 6,477 18.5 6,741 18.9$75,000 - $99,999 603 1.8 2,656 7.5 3,558 10.2 3,841 10.8$100,000 - $149,999 295 0.9 1,322 3.7 2,432 6.9 3,426 9.6$150,000 + 73 0.2 481 1.4 956 2.7 1,337 3.7

POPULATION BY AGE Number Percent Number Percent Number Percent Number Percent<19 21,882 26.8 % 25,605 28.6 % 24,981 28.2 % 25,402 28.3 %20-24 7,565 9.3 9,082 10.1 8,004 9.0 7,776 8.725-34 17,536 21.5 16,909 18.9 13,828 15.6 12,688 14.135-44 13,200 16.2 14,516 16.2 13,424 15.2 12,529 13.945-54 6,104 7.5 10,777 12.0 12,302 13.9 12,539 14.055-64 4,548 5.6 5,050 5.6 7,653 8.6 9,525 10.665-74 4,796 5.9 3,196 3.6 3,620 4.1 4,865 5.475-84 6,057 7.4 2,757 3.1 2,696 3.0 2,687 3.085+ NA NA 1,766 2.0 2,060 2.3 1,860 2.1

RACE AND ETHNICITY Number Percent Number Percent Number Percent Number PercentWhite 59,080 72.3 % 49,470 55.2 % 45,357 51.2 % 47,179 52.5 %Black 11,296 13.8 18,722 20.9 19,379 21.9 17,669 19.7Native American 6,642 8.1 4,387 4.9 3,112 3.5 2,067 2.3Asian/Pacific Islander 3,707 4.5 4,863 5.4 5,548 6.3 5,967 6.6Other Races 963 1.2 12,216 13.6 15,172 17.1 16,988 18.9

Hispanic (Any Race) 2,209 2.7 11,757 13.1 17,631 19.9 21,889 24.4

Source: U.S. Census, Scan/US, Inc. and McComb Group, Ltd.

SMN
37
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Table 28

DEMOGRAPHIC AND INCOME SNAPSHOT

Hiawatha Trade Area 11/26/2008

SNAPSHOT 1990 Census 2000 Census 2007 Estimated 2012 ProjectedPopulation 49,534 49,296 50,072 51,334Households 21,261 20,998 21,610 22,264Families 12,408 11,134 11,296 11,468Per Capita Income $ 13,837 $ 22,865 $ 25,883 $ 28,130Median Household Income $ 28,937 $ 43,553 $ 51,986 $ 57,041Average Household Income $ 32,144 $ 52,494 $ 57,113 $ 61,147Average Household Size 2.29 2.30 2.27 2.24Median Age 35 36 39 40

Annual Percent ChangeTRENDS 1990 - 2000 2000 - 2007 2007 - 2012Population -0.05 % 0.22 % 0.50 %Households -0.12 0.41 0.60Families -1.08 0.21 0.30Median Household Income 4.17 2.56 1.87Average Household Income 5.03 1.21 1.37

1990 Census 2000 Census 2007 Estimated 2012 ProjectedHOUSEHOLDS BY INCOME Number Percent Number Percent Number Percent Number PercentLess than $15,000 4,555 21.4 % 2,279 10.9 % 1,887 8.7 % 1,743 7.8 %$15,000 - $24,999 4,566 21.5 2,717 12.9 2,155 10.0 1,970 8.9$25,000 - $34,999 4,004 18.8 3,187 15.2 2,625 12.1 2,171 9.8$35,000 - $49,999 4,698 22.1 4,137 19.7 3,814 17.7 3,666 16.5$50,000 - $74,999 2,620 12.3 4,855 23.1 4,993 23.1 5,124 23.0$75,000 - $99,999 518 2.4 2,349 11.2 3,112 14.4 3,240 14.6$100,000 - $149,999 244 1.1 1,020 4.9 2,164 10.0 3,159 14.2$150,000 + 57 0.3 452 2.2 860 4.0 1,191 5.3

POPULATION BY AGE Number Percent Number Percent Number Percent Number Percent<19 11,799 23.8 % 11,879 24.1 % 11,869 23.7 % 12,290 23.9 %20-24 3,025 6.1 2,921 5.9 2,743 5.5 2,764 5.425-34 10,737 21.7 9,149 18.6 7,668 15.3 7,085 13.835-44 8,824 17.8 9,099 18.5 8,467 16.9 7,878 15.345-54 4,167 8.4 7,257 14.7 8,241 16.5 8,369 16.355-64 3,310 6.7 3,417 6.9 5,110 10.2 6,306 12.365-74 3,794 7.7 2,312 4.7 2,596 5.2 3,420 6.775-84 3,877 7.8 2,283 4.6 2,194 4.4 2,146 4.285+ NA NA 980 2.0 1,184 2.4 1,076 2.1

RACE AND ETHNICITY Number Percent Number Percent Number Percent Number PercentWhite 43,763 88.4 % 36,950 75.0 % 35,291 70.5 % 34,682 67.6 %Black 2,489 5.0 4,696 9.5 5,557 11.1 6,042 11.8Native American 1,774 3.6 1,556 3.2 1,173 2.3 815 1.6Asian/Pacific Islander 1,067 2.2 1,588 3.2 2,130 4.3 2,714 5.3Other Races 442 0.9 4,507 9.1 5,921 11.8 7,081 13.8

Hispanic (Any Race) 968 2.0 4,501 9.1 6,850 13.7 8,523 16.6

Source: U.S. Census, Scan/US, Inc. and McComb Group, Ltd.

SMN
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39

by a small park-n-ride lot. Weekday boardings at Lake Street have increased from an estimated 1,941 in 2005 to 2,744 in 2007. Average daily boardings at 38th Street and 46th Street stations are somewhat lower. At the 38th Street station, daily boardings have increased from 1,416 to 1,707 between 2005 and 2007. Boardings at the 46th Street station have increased from 1,312 in 2005 to 1,807 in 2007. Average weekend day boardings are about 45 percent of the weekday boardings.

Table 29

MINNEHAHA-HIAWATHA CORRIDORLRT PASSENGER BOARDINGS; 2005 TO 2007

Station 2005 2006 2007

AnnualLake Street 580,000 722,000 820,000 38th Street 423,000 481,000 510,000 46th Street 392,000 478,000 540,000

AverageWeekdayLake Street 1,941 2,416 2,744 38th Street 1,416 1,610 1,707 46th Street 1,312 1,600 1,807

AverageWeekend DayLake Street 837 1,041 1,183 38th Street 610 694 736 46th Street 565 689 779

Source: Metropolitan Council and McComb Group, Ltd. LRT passengers are a potential source of business for retailers near the stations, keeping in mind the following considerations:

• A high percentage of these riders are likely to live in the trade area and may already be customers of businesses near a station.

• LRT riders must have a need for merchandise or services that are sold by businesses near LRT stations.

• LRT riders are likely to need the retail or services sold by businesses near the station on an infrequent basis. They are unlikely to represent daily business.

• It is unlikely that many passengers that transfer from LRT to buses will take the time to shop at a nearby business and miss their transfer connection.

• Most of the retail potential will occur on the homebound trip and morning business is likely to be lower.

• The LRT line may make it possible for some customers to get to a store that they would not visit if the LRT did not exist.

• LRT has benefited some restaurants that are located near stations. The above considerations tend to limit the potential sales that can be captured from LRT riders, but suggest that some businesses will capture business from LRT riders and these may be sales they would not have otherwise. LRT riders represent a potential market, but the benefit to

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retailers located near a station is less than the boarding estimate. LRT is unlikely to cause a retailer to locate in the Minnehaha-Hiawatha Corridor, but the business that LRT generates will be a welcome bonus on top of the business they can generate from the store’s trade area. Purchasing Power

Retail sales potential for the Minnehaha-Hiawatha Corridor study area is based on estimated purchasing power and market share that can be achieved from the trade areas. Retail sales from residents living outside the trade areas are inflow sales. Purchasing power estimates of trade area residents are derived from retail sales by store type as reported by the Census of Retail Trade in 1997 and 2002. Retail sales for 2003 through 2007 were estimated using information available from the U.S. Department of Commerce. Future purchasing power estimates are expressed in current dollars. Purchasing power is based on the number of trade area households adjusted to reflect income characteristics. Purchasing power, for the purpose of this analysis, includes retail categories that are characteristics of tenants that could be located in the Hiawatha trade area and Minnehaha/Lake trade area. Estimated retail purchasing power summary tables for the Minnehaha/Lake and Hiawatha trade areas for 2007 and 2012 are shown in Table 30. The purchasing power estimates used in this analysis are condensed from the full purchasing power tables, which are contained in a separate Appendix. These estimates represent the potential dollar sales for a broad range of retail stores generated by residents of the trade area.

Table 30

MINNEHAHA-HIAWATHA CORRIDOR TRADE AREASRETAIL PURCHASING POWER; 2007 AND 2012

(In Thousands of Dollars)

Merchandise Category 2007 2012

Minnehaha/Lake Trade AreaShopping Goods 238,585$ 256,782$ Food Service & Drinking 89,721 96,559 Convenience Goods 175,631 189,020 Gasoline Service Stations & Convenience 68,809 74,056 Other Stores 303,929 558,423 Total 876,675$ 1,174,840$

Hiawatha Trade AreaShopping Goods 161,385$ 172,552$ Food Service & Drinking 60,688 64,888 Convenience Goods 118,799 127,020 Gasoline Service Stations & Convenience 46,544 49,765 Other Stores 205,582 375,260 Total 592,998$ 789,485$

Source: McComb Group, Ltd. Total purchasing power for the Hiawatha trade area was estimated at $593 million in 2007 and is expected to increase to almost $790 million by 2012, an annual growth rate of 5.9 percent. Purchasing power for shopping goods in this trade area is expected to increase from $161.4 million in 2007 to $172.6 million in 2012. Food service and drinking purchasing power for this trade area was $60.7 million in 2007, estimated to increase to $64.9 million by 2012. Minnehaha/Lake trade area total purchasing power is estimated at $877 million in 2007 and is estimated to increase to $1.2 billion in 2012, an annual growth rate of 6.0 percent.

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Chapter V

RETAIL STORE AND SERVICE POTENTIAL Retail areas located along Hiawatha and Minnehaha Avenues serve residents of the eastern portion of south Minneapolis. Factors that support retail and service development within the corridor include:

• The LRT line is providing impetus for residential development that is attracting higher income households to the area.

• Households with incomes above $75,000 are under served by existing retail stores and services.

• The Minnehaha/Lake trade area is expected to have almost 8,400 upper income households in 2012.

• The Hiawatha trade area is expected to have almost 7,000 upper income households in 2012.

• These upper income households are represented throughout the area, and are concentrated in the eastern and southern portions of the trade areas.

• The area’s proximity to the University of Minnesota, Augsburg College, St. Thomas University and Macalester College results in the trade area having a large population with college and advanced degrees.

The many positive attributes of the Minnehaha-Hiawatha Corridor study area provides support for additional stores, restaurants and services. Retail Potential

Future retail and service sales potential for the Minnehaha-Hiawatha Corridor is based on market share that can be achieved by retail stores taking into consideration past trends in Minneapolis, trade area households, demographic characteristics and future growth stimulated by LRT and increased commuting costs. Market share estimates are based on analysis conducted as part of this engagement and McComb Group’s knowledge of the Twin Cities area retail market. Market share was estimated for each retail and service category taking into consideration retail stores, trade area size, competitive store locations and industrial experience. Trade area market share by store type is shown in Table 31. Using the convenience goods category for the Hiawatha trade area as an example, market share is estimated at 20 to 50 percent with 85 percent of the sales derived from the trade area. Food service market share is estimated at 40 percent for full service and limited service restaurants with 75 percent of the sales being derived from the trade area. In the shopping goods category, market share ranges from 20 to 25 percent depending on store category. In the shopping goods category, stores are estimated to derive 75 percent of their sales from the trade area. Market share in services and health care are estimated at 25 to 55 percent with 85 percent of the sales from the trade area.

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Table 31

MINNEHAHA/LAKE AND HIAWATHA TRADE AREASMARKET SHARE AND TRADE AREA SALES

Minnehaha/Lake HiawathaMarket Trade Area Market Trade Area

Store Type Share Sales Share SalesConvenience Goods

Supermarkets 45 % 70 % 20 % 85 %Other Food Stores 25 70 50 85 Drug & Proprietary 30 70 50 85 Liquor 30 70 50 85 Hardware Stores 30 70 50 85 Other Convenience Stores 25 70 50 85

Food ServiceFull Service 10 % 70 % 40 % 75 %Limited Service 15 70 40 75

Gasoline/Convenience Stores 10 70 20 70

Shopping GoodsGeneral Merchandise 40 % 70 % 25 % 75 %Apparel & Accessories 20-40 70 20 75 Furniture & Home Furnishings 20 70 20 75 Electronics & Appliances Stores 15-20 70 20 75 Other Shopping Goods 20 70 20 75

Other Retail StoresBuilding Materials 45 % 70 % 35 % 85 %Auto Parts & Accessories 15 70 20 85

Services 20-66 % 70 % 25-55 % 85 %

Health Care 15 % 70 % 30 % 85 %

Source: McComb Group, Ltd. Sales Potential

Estimated retail and service space demand is a two-step process. Sales potential for each retail or service category is estimated first to determine if retail sales are sufficient to support a store. Next, store size is determined based on sales productivity and typical store size for each category. This methodology is illustrated for 2007 in Tables 32 and 33, which identifies existing demand. These tables use convenience goods stores in the Hiawatha trade area as an example to illustrate how supportable square footage of retail stores and services is determined. Using supermarkets as an example, resident purchasing power in 2007 was estimated at $75.0 million, as shown in Table 32. Market share of 20 percent results in $15.0 million of trade area sales. Adding inflow sales of $2.6 million, results in total estimated sales of about $17.6 million. Estimated sales potential is about $13.8 million for drug stores and $2.4 million for hardware stores. The sale approach is used for other retail and service categories. Sales potential for other retail stores and services is contained in the Appendix.

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Table 32

HIAWATHA TRADE AREACONVENIENCE GOODS PURCHASING POWER, MARKET SHARE AND SALES POTENTIAL; 2007

BY MERCHANDISE CATEGORY(In Thousands of Dollars)

Resident Estimated Trade Trade EstimatedPurchasing Market Area Area Other Total

Merchandise Category Power Share Sales Percent Shoppers Sales

Supermarkets 74,996$ 20.0 % 14,999$ 85 % 2,647$ 17,646$ Drug & Proprietary Stores 23,464 50.0 11,732 85 2,070 13,802 Hardware 4,057 50.0 2,029 85 358 2,387 Liquor 10,142 50.0 5,071 85 895 5,966 Florist 1,974 50.0 987 85 174 1,161 Food/Health Supplement Stores 658 25.0 165 85 29 194

Source: McComb Group, Ltd. Supportable gross leasable area (GLA) for supermarkets is based on sales potential of $17.6 million divided by $400 per square foot, resulting in supportable square footage of 44,115 square feet, as shown in Table 33. Since there is no supermarket in the immediate area, there is potential for a conventional supermarket. The only competition is Aldi, Cub and Rainbow, which are lower price formats. Drug store potential is estimated at $13.8 million, which would support 30,000 square feet. There is an existing Walgreens, which captures about half of this potential, indicating demand for a second drug store. In the liquor category, there is market support for additional liquor stores, but Minneapolis ordinances limits the locations of liquor stores south of Lake Street.

Table 33

HIAWATHA TRADE AREACONVENIENCE GOODS SALES POTENTIAL AND SUPPORTABLE SPACE; 2007

BY MERCHANDISE CATEGORY(In Thousands of Dollars)

ResidentPurchasing Sales Supportable Median

Merchandise Category Power Per Sq. Ft. Square Feet Store Size

Supermarkets 17,646,000$ 400$ 44,115 52,500 Drug & Proprietary Stores 13,802,000 460 30,004 11,700 Hardware 2,387,000 185 12,903 7,857 Liquor 5,966,000 375 15,909 2,900 Florist 1,161,000 190 6,111 1,600 Food/Health Supplement Stores 194,000 250 776 1,500

Source: McComb Group, Ltd. The last column in this table contains the median store size from Dollars & Cents of Shopping Centers, published by the Urban Land Institute, for each store type. Median store size indicates

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a typical size for a store in each retail category. To the extent that supportable square footage is about the same as the median store size or larger, sales potential exists to support that store type. Complete tables showing supportable square footage by retail and service category for each target year are contained in the Appendix. Retail GLA supported by estimated sales potential for each retail store category is based on estimated sales per square foot (in 2007 dollars) by store type. Sales per square foot estimates are derived from median store sales per square foot for each tenant type contained in Dollars & Cents of Shopping Centers, 2006. Supportable GLA is calculated by dividing sales potential by sales per square foot. This analysis was used to provide an estimate of the supportable square footage in each retail store category. Additional Retail Space

Additional retail space that can be supported in the Minnehaha-Hiawatha Corridor for 2007 and 2012 is contained in two tables: one for the Minnehaha/Lake trade area (Table 35) and a second table for the Hiawatha trade area (Table 36). Supportable retail space, as determined by the preceding analysis, was adjusted to reflect the demand potential captured by existing retail stores in the Minnehaha-Hiawatha Corridor study area. The analysis indicates that there is potential to support more retail stores and services than are currently located in the Minnehaha-Hiawatha Corridor retail areas. This represents potential; however, potential does not always result in new retail stores. The private sector and individual entrepreneurs must also feel that the potential location of the store and its physical characteristics and the trade area population is consistent with their store concept. As a result, the estimates of additional supportable square feet have been rated as likely, possible or unlikely and are summarized in Table 34. Estimated supportable space for the Minnehaha/Lake trade area is 204,400 square feet in 2007 increasing to 213,100 square feet in 2012. Of this amount, 27,500 square feet is considered likely and another 96,600 square feet is considered possible in 2012. Stores comprising an estimated 89,000 square feet in 2012 are considered unlikely. Stores that are unlikely include a department store. A department store is unlikely in that a store of 80,000 to 85,000 square feet would require a six to seven acre site, which would be difficult to assemble. Additionally, a department store might not be attracted to the broad range of demographic characteristics in the trade area.

Table 34

ADDITIONAL SUPPORTABLE RETAIL SPACE; 2007 AND 2012

Minnehaha/Lake Trade Area Hiawatha Trade AreaPotential 2007 2012 2007 2012

Likely 27,500 27,500 110,200 123,100 Possible 93,400 96,600 35,600 38,100 Unlikely 83,500 89,000 17,500 18,500 Total 204,400 213,100 163,300 179,700

Source: McComb Group, Ltd.

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In the Hiawatha trade area, there is demand for an additional 163,300 square feet of supportable space in 2007 increasing to almost 180,000 square feet in 2012. Of this amount, 110,200 and 123,100 square feet are considered likely in 2007 and 2012, respectively. These are mostly convenience goods stores, food service and automotive uses. There is some potential for personal care services, personal services and dental or chiropractic offices. Possible stores total 38,100 square feet in 2012. Unlikely retail and service store types total about 18,500 square feet in 2012. Stores categorized as unlikely would need to have a strong following within the trade area and also be able to attract 50 percent or more of their customers from outside the trade area. The individual categories of store types that are potentially possible for the Minnehaha/Lake trade area are contained in Table 35. Retail store types that are possible in the Hiawatha trade area are contained in Table 36. Additional supportable square feet of retail and services is due primarily to merchandise voids in retail categories that are under represented in relation to sales potential in the existing shopping areas. These tables also contain the range of store size and square feet of GLA from Dollars & Cents of Shopping Centers. For most categories, the median store size is bracketed by high and low square feet. The low represents the smallest store that is likely to be economically viable. In most situations, stores of less than 1,200 square feet are not feasible unless sales per square foot are well above average. Retail and service categories can locate in existing buildings or in new developments. Tenant turnover is a fact for retail spaces and provides the opportunity for new business to locate in the area. Developing new retail and service space is more difficult since much of the area is already developed. Significant new retail development will most likely require demolition of existing buildings to provide space for stores and parking. The largest amount of underutilized space in the study area lies along Hiawatha Avenue south of 38th Street. Over time, much of this area could be redeveloped into desirable retail space. If the rail lines are abandoned south of 42nd Street, attractive development sites could be created. Some of these sites could be used to accommodate retail development. These sites would benefit from high traffic counts on Hiawatha Avenue and proximity to the 46th Street LRT station. Adding additional retail space along Minnehaha Avenue will require demolition of existing structures, primarily those that are residential. This is more difficult considering the value of the real estate and the amount of land required to support a retail store and its associated parking.

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Table 35

MINNEHAHA/LAKE TRADE AREA ADDITIONAL SUPPORTABLE SPACE: 2007 AND 2012

Store SizeMerchandise Category Potential 2007 2012 High Median Low

CONVENIENCE GOODSFood Stores Specialty Food Stores P 5,000 5,000 9,888 2,291 1,112

Other Convenience Goods Drug & Proprietary Stores L 15,000 15,000 23,714 11,700 8,280 Hardware P 7,000 7,000 27,743 13,831 5,638 Florist L 1,500 1,500 5,396 1,600 766 Food/Health Supplement Stores P 1,500 1,500 1,968 1,234 1,200 Subtotal 25,000 25,000

Food Service Full-service Restaurants L 4,500 4,500 9,775 4,500 2,000 Snack & Beverage Places L 3,000 3,000 2,495 1,500 850 Subtotal 7,500 7,500

OTHER RETAIL STORESBuilding Materials & Garden Suplies Paint, Glass & Wallpaper P 4,000 4,000 5,028 3,533 2,348

Motor Vehicles & Parts Dealers Tire Dealers P 2,500 2,500 5,000 2,500 1,500 Subtotal 2,500 2,500

SHOPPING GOODSGeneral Merchandise Department Stores (Incl, leased depts) Department Stores U 80,000 85,000 192,195 104,560 51,125

Apparel & Accessories Clothing Stores Mens and Boys P 3,500 4,000 5,635 4,000 2,002 Women's Clothing P 4,500 5,000 8,740 4,200 2,074 Family Clothing P 5,000 5,000 28,228 8,000 2,374 Other Clothing Stores P 2,500 2,500 8,234 2,300 1,060

Shoe Stores Family Shoe Stores P 3,500 4,000 10,234 3,388 2,021 Athletic Footwear P 3,300 3,500 11,314 3,284 1,535

Furniture & Home Furnishings Floor Coverings U 3,500 4,000 7,819 3,593 1,229 All other Home Furnishings Stores P 4,000 4,500 6,500 3,570 2,868

Other Shopping Goods General Line Sporting Goods P 6,000 6,500 28,128 5,850 3,765 Specialty Line Sporting Goods P 3,000 3,500 1,097 2,449 4,356 Jewelry Stores P 1,500 1,500 3,410 1,450 790 Gift, Novelty & Souvenirs P 5,000 5,000 7,015 4,422 2,369 Pet Stores P 3,000 3,000 12,398 3,200 1,847 Subtotal 128,300 137,000

SERVICESPersonal Care Services Beauty Shops/Nail Salons L 2,000 2,000 3,480 1,400 773 Other Personal Services L 1,500 1,500 4,128 1,488 703

Dry Cleaning & Laundry Serviceds Coin-operated Laundries & Dry Cleaners P 2,000 2,000 3,734 2,024 1,222 Dry Cleaning & Laundry Services (except coin-op) P 1,600 1,600 2,731 1,608 1,038

Recreation Physical Fitness Facilities P 5,000 5,000 32,170 6,448 1,433

Subtotal 12,100 12,100

Health Care Offices of Physicians (except mental health specialists) P 15,000 15,000 4,008 1,652 969 Offices of Dentists P 3,000 3,000 1,700 Offices of Chiropractors P 2,000 2,000 1,600 Subtotal 20,000 20,000

TOTAL 204,400 213,100

Key L=LikelyP=PossibleU=Unlikely

Source: McComb Group, Ltd.

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Table 36

HIAWATHA TRADE AREA ADDITIONAL SUPPORTABLE SPACE: 2007 AND 2012

Store SizeMerchandise Category Potential 2007 2012 High Median Low

CONVENIENCE GOODSFood Stores Supermarkets L 45,000 48,000 69,462 52,419 31,245 Meat Markets P 2,000 2,000 18,080 2,215 1,130 Drug Proprietary Stores L 15,000 15,000 23,714 11,700 8,280 Florist L 2,000 2,000 5,396 1,600 766 Subtotal 64,000 67,000

Food Service Full-service Restaurants L 9,000 14,000 9,775 4,500 2,000 Limited Service Restaurants L 3,500 7,000 3,000 3,400 1,335 Ice Cream & Soft Serve L 1,200 1,300 1,570 1,148 902 Bagel Shops/Coffee Shops L 1,500 1,500 2,000 1,500 881 Subtotal 15,200 23,800

Parts Dealers Auto Parts & Accessories Stores L 6,500 6,500 13,000 6,500 2,232 Tire Dealers L 4,000 4,000 5,000 2,500 1,500 Subtotal 10,500 10,500

SHOPPING GOODSApparel & Accessories Women's Clothing U 4,500 4,500 8,740 4,200 2,074 Family Clothing U 6,000 6,000 28,228 8,000 2,374

Furniture & Home Furnishings Floor Coverings U 5,000 6,000 7,819 3,593 1,229 All Other Home Furnishings Stores P 3,500 4,000 6,500 3,570 2,868

Electronics & Appliance Stores Radio, TV & Electronics Stores P 3,600 4,500 44,446 2,526 1,789

Other Shopping Goods Jewelry Stores P 1,500 1,600 3,410 1,450 790 Gift, Novelty & Souvenirs L 3,000 3,300 7,015 4,422 2,369 Subtotal 27,100 29,900

SERVICESPersonal Care Services Beauty Shops/Nail Salons L 7,000 8,000 3,480 1,400 773

Other Personal Services Child Day Care Services L 5,000 5,000 7,495 5,050 3,059 Veterinarian Services P 2,500 2,500 2,701 2,122 1,346

Recreation Physical Fitness Facilities P 6,000 6,000 32,170 6,448 1,433

Professional Services Offices P 6,000 7,000 6,264 2,092 711

Automotive Repair and Maintenance Automotive Glass Replacement P 4,000 4,000 Automotive Oil Change & Lubrication Shops P 1,500 1,500 Subtotal 32,000 34,000

Health Care Offices of Physicians (except mental health specialists) P 5,000 5,000 4,008 1,652 969 Offices of Dentists L 4,000 4,000 1,700 Offices of Chiropractors L 3,500 3,500 1,600 Physical & Occupational Therapists U 2,000 2,000 1,600 Subtotal 14,500 14,500

TOTAL 163,300 179,700

Key L=LikelyP=PossibleU=Unlikely

Source: McComb Group, Ltd.

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Chapter VI

SOCIOECONOMIC CHARACTERISTICS Socioeconomic characteristics of the Minnehaha-Hiawatha Corridor area are illustrated in Maps 10 through 30. These figures display population density by age cohort, married households with and without children, single parent households, distribution of one person households, distribution of population by race and ethnicity and educational attainment. Socioeconomic characteristics for the Minnehaha/Lake and Hiawatha trade areas are compared with Minneapolis and Hennepin County in the Appendix. Socioeconomic maps are listed below.

Map Title10 Percent of Population Under Age 19; 200711 Percent of Population Age 20 to 34; 200712 Percent of Population Age 35 to 64; 200713 Percent of Population Age 65+; 200714 Percent of Population Married With Children; 200715 Percent of Population Married Without Children; 200716 Percent of Population Single Parent; 200717 Percent of One Person Households; 200718 Percent of Population With No Vehicles; 200719 Percent of Population 2007: Caucasian20 Percent of Population 2007: African American21 Percent of Population 2007: Asian22 Percent of Population 2007: Pacific Islander23 Percent of Population 2007: American Indian24 Percent of Population 2007: Hispanic25 Percent of Population 2007: Other/Multi-Race26 Percent of Population With No High School Diploma; 200727 Percent of Population With High School Diploma; 200728 Percent of Population With Some College; 200729 Percent of Population With College Degree; 200730 Percent of Population With Graduate Degree; 2007

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neapolis

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Linda Oie
PERCENT OF POPULATION UNDER AGE 19; 2007
Linda Oie
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PERCENT OF POPULATION AGE 20 TO 34; 2007
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PERCENT OF POPULATION AGE 35 TO 64; 2007
Linda Oie
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PERCENT OF POPULATION AGE 65+; 2007
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neapolis

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PERCENT OF POPULATION MARRIED WITH CHILDREN; 2007
Linda Oie
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neapolis

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Map 16
Linda Oie
PERCENT OF POPULATION SINGLE PARENT; 2007
Linda Oie
Copyright© 2008 by McComb Group, Ltd.
SMN
55
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neapolis

Port

land

Ave

S

E 43rd St

Crosstown Hwy/SR-62

E Minnehaha Pkwy

E Franklin Ave

E Lake St

E 38th St

E 54th St

E 46th St

E 40th St

Ced

ar A

ve S

E 51st St

28th

Ave

S

E 34th St

E 32nd St

E 35th St

2007 Percent ofHouseholds

White: No Data Industrial/Park/Cemetery

1 - 10

10 - 20

20 - 30

30 - 40

40+

0 0.2 0.4 0.6 0.8

Scale: 1" = 0.69 miles

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56
Linda Oie
PERCENT OF ONE PERSON HOUSEHOLDS; 2007
Linda Oie
Map 17
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neapolis

Port

land

Ave

S

E 43rd St

Crosstown Hwy/SR-62

E Minnehaha Pkwy

E Franklin Ave

E Lake St

E 38th St

E 54th St

E 46th St

E 40th St

Ced

ar A

ve S

E 51st St

28th

Ave

S

E 34th St

E 32nd St

E 35th St

2007 Percent ofHouseholds

White: No Data Industrial/Park/Cemetery

1.0 - 7.5

7.5 - 15.0

15.0 - 22.5

22.5+

0 0.2 0.4 0.6 0.8

Scale: 1" = 0.69 miles

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Map 18
Linda Oie
PERCENT OF POPULATION WITH NO VEHICLES; 2007
Linda Oie
Copyright© 2008 by McComb Group, Ltd.
SMN
57
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neapolis

Port

land

Ave

S

E 43rd St

Crosstown Hwy/SR-62

E Minnehaha Pkwy

E Franklin Ave

E Lake St

E 38th St

E 54th St

E 46th St

E 40th St

Ced

ar A

ve S

E 51st St

28th

Ave

S

E 34th St

E 32nd St

E 35th St

Percent of 2007Population

White: No Data Industrial/Park/Cemetery

1 to 25% of Population Caucasion25 to 50% of Population Caucasion50 to 75% of Population Caucasion75 to 100% of Population Caucasion

0 0.2 0.4 0.6 0.8

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58
Linda Oie
Copyright© 2008 by McComb Group, Ltd.
Linda Oie
PERCENT OF POPULATION 2007: CAUCASIAN
Linda Oie
Map 19
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neapolis

Port

land

Ave

S

E 43rd St

Crosstown Hwy/SR-62

E Minnehaha Pkwy

E Franklin Ave

E Lake St

E 38th St

E 54th St

E 46th St

E 40th St

Ced

ar A

ve S

E 51st St

28th

Ave

S

E 34th St

E 32nd St

E 35th St

2007 Percent ofPopulation

White: No Data Industrial/Park/Cemetery

1 to 7.5% of Population African American7.5 to 15% of Population African American15 to 22.5% of Population African AmericanAbove 22.5% of Population African American

0 0.2 0.4 0.6 0.8

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Map 20
Linda Oie
PERCENT OF POPULATION 2007: AFRICAN AMERICAN
Linda Oie
Copyright© 2008 by McComb Group, Ltd.
SMN
59
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neapolis

Port

land

Ave

S

E 43rd St

Crosstown Hwy/SR-62

E Minnehaha Pkwy

E Franklin Ave

E Lake St

E 38th St

E 54th St

E 46th St

E 40th St

Ced

ar A

ve S

E 51st St

28th

Ave

S

E 34th St

E 32nd St

E 35th St

2007 Percent of Population

White: No Data Industrial/Park/Cemetery

1 to 7.5% of Population Asian

7.5 to 15% of Population Asian15 to 22.5% of Population AsianAbove 22.5% of Population Asian

0 0.2 0.4 0.6 0.8

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60
Linda Oie
Copyright© 2008 by McComb Group, Ltd.
Linda Oie
PERCENT OF POPULATION 2007: ASIAN
Linda Oie
Map 21
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neapolis

Port

land

Ave

S

E 43rd St

Crosstown Hwy/SR-62

E Minnehaha Pkwy

E Franklin Ave

E Lake St

E 38th St

E 54th St

E 46th St

E 40th St

Ced

ar A

ve S

E 51st St

28th

Ave

S

E 34th St

E 32nd St

E 35th St

2007 Percent of Population

1 to 5% of Population Pacific IslanderOver 5% of Population Pacific Islander

0 0.2 0.4 0.6 0.8

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Map 22
Linda Oie
PERCENT OF POPULATION 2007: PACIFIC ISLANDER
Linda Oie
Copyright© 2008 by McComb Group, Ltd.
SMN
61
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neapolis

Port

land

Ave

S

E 43rd St

Crosstown Hwy/SR-62

E Minnehaha Pkwy

E Franklin Ave

E Lake St

E 38th St

E 54th St

E 46th St

E 40th St

Ced

ar A

ve S

E 51st St

28th

Ave

S

E 34th St

E 32nd St

E 35th St

2007 Percent ofPopulation

White: No Data Industrial/Park/Cemetery

1 to 5% of Population American Indian5 to 10% of Population American Indian10 to 15% of Population American IndianAbove 15% of Population American Indian

0 0.2 0.4 0.6 0.8

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62
Linda Oie
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Linda Oie
Map 23
Linda Oie
PERCENT OF POPULATION 2007: AMERICAN INDIAN
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neapolis

Port

land

Ave

S

E 43rd St

Crosstown Hwy/SR-62

E Minnehaha Pkwy

E Franklin Ave

E Lake St

E 38th St

E 54th St

E 46th St

E 40th St

Ced

ar A

ve S

E 51st St

28th

Ave

S

E 34th St

E 32nd St

E 35th St

2007 Percent ofPopulation

White: No Data Industrial/Park/Cemetery

1 to 7.5% of Population Hispanic7.5 to 15% of Population Hispanic15 to 22.5% of Population HispanicAbove 22.5% of Population Hispanic

0 0.2 0.4 0.6 0.8

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PERCENT OF POPULATION 2007: HISPANIC
Linda Oie
Map 24
Linda Oie
Copyright© 2008 by McComb Group, Ltd.
SMN
63
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neapolis

Port

land

Ave

S

E 43rd St

Crosstown Hwy/SR-62

E Minnehaha Pkwy

E Franklin Ave

E Lake St

E 38th St

E 54th St

E 46th St

E 40th St

Ced

ar A

ve S

E 51st St

28th

Ave

S

E 34th St

E 32nd St

E 35th St

2007 Percent of 2007Population

White: No Data Industrial/Park/Cemetery

1 to 7.5% of Population Other/Multi-Race7.5 to 15% of Population Other/Multi-Race15 to 22.5% of Population Other/Multi-RaceOver 22.5% of Population Other/Multi-Race

0 0.2 0.4 0.6 0.8

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Linda Oie
Copyright© 2008 by McComb Group, Ltd.
Linda Oie
Map 25
Linda Oie
PERCENT OF POPULATION 2007: OTHER/MULTI-RACE
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neapolis

Port

land

Ave

S

E 43rd St

Crosstown Hwy/SR-62

E Minnehaha Pkwy

E Franklin Ave

E Lake St

E 38th St

E 54th St

E 46th St

E 40th St

Ced

ar A

ve S

E 51st St

28th

Ave

S

E 34th St

E 32nd St

E 35th St

2007 Percent ofPopulation

White: No Data Industrial/Park/Cemetery

0.0 - 5.0

5.0 - 10.0

10.0 - 15.0

15.0+

0 0.2 0.4 0.6 0.8

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Linda Oie
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Linda Oie
PERCENT OF POPULATION WITH NO HIGH SCHOOL DIPLOMA; 2007
Linda Oie
Map 26
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neapolis

Port

land

Ave

S

E 43rd St

Crosstown Hwy/SR-62

E Minnehaha Pkwy

E Franklin Ave

E Lake St

E 38th St

E 54th St

E 46th St

E 40th St

Ced

ar A

ve S

E 51st St

28th

Ave

S

E 34th St

E 32nd St

E 35th St

2007 Percent ofPopulation

White: No Data Industrial/Park/Cemetery

0.0 - 10.0

10.0 - 20.0

20.0 - 30.0

30.0+

0 0.2 0.4 0.6 0.8

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Map 27
Linda Oie
PERCENT OF POPULATION WITH HIGH SCHOOL DIPLOMA; 2007
Linda Oie
Copyright© 2008 by McComb Group, Ltd.
SMN
66
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neapolis

Port

land

Ave

S

E 43rd St

Crosstown Hwy/SR-62

E Minnehaha Pkwy

E Franklin Ave

E Lake St

E 38th St

E 54th St

E 46th St

E 40th St

Ced

ar A

ve S

E 51st St

28th

Ave

S

E 34th St

E 32nd St

E 35th St

2007 Percent ofPopulation

White: No Data Industrial/Park/Cemetery

0.0 - 20.0

20.0 - 30.0

30.0 - 40.0

40.0+

0 0.2 0.4 0.6 0.8

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Linda Oie
PERCENT OF POPULATION WITH SOME COLLEGE; 2007
Linda Oie
Copyright© 2008 by McComb Group, Ltd.
SMN
67
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neapolis

Port

land

Ave

S

E 43rd St

Crosstown Hwy/SR-62

E Minnehaha Pkwy

E Franklin Ave

E Lake St

E 38th St

E 54th St

E 46th St

E 40th St

Ced

ar A

ve S

E 51st St

28th

Ave

S

E 34th St

E 32nd St

E 35th St

2007 Percent ofPopulation

White: No Data Industrial/Park/Cemetery

0.0 - 20.0

20.0 - 40.0

40.0 - 60.0

60.0+

0 0.2 0.4 0.6 0.8

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Linda Oie
Copyright© 2008 by McComb Group, Ltd.
Linda Oie
PERCENT OF POPULATION WITH COLLEGE DEGREE; 2007
Linda Oie
Map 29
Linda Oie
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neapolis

Port

land

Ave

S

E 43rd St

Crosstown Hwy/SR-62

E Minnehaha Pkwy

E Franklin Ave

E Lake St

E 38th St

E 54th St

E 46th St

E 40th St

Ced

ar A

ve S

E 51st St

28th

Ave

S

E 34th St

E 32nd St

E 35th St

2007 Percent ofPopulation

White: No Data Industrial/Park/Cemetery

0.01 - 20.00

20.00 - 30.00

30.00 - 40.00

40.00+

0 0.2 0.4 0.6 0.8

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Linda Oie
PERCENT OF POPULATION WITH GRADUATE DEGREE; 2007
Linda Oie
Copyright© 2008 by McComb Group, Ltd.
SMN
69
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Chapter VII

HOUSING DEMAND Minneapolis housing development accelerated dramatically in the early part of this decade as a result of renewed interest in living in the city. Between 2000 and 2007, over 10,300 residential building permits were issued in Minneapolis. The largest number of building permits were issued in downtown Minneapolis and along the Mississippi River. South Minneapolis was also popular with most of those units being in the Uptown area. Construction of the LRT line focused development interest on the Hiawatha LRT Corridor where permits for over 900 units were issued.

Table 37

CITY OF MINNEAPOLIS AND MINNEAPOLIS-ST. PAUL METROPOLITAN AREA BUILDING PERMITS; 2000 TO 2007

2000 2001 2002 2003 2004 2005 2006 2007

METROPOLITAN AREAUnits Single Family 13,066 12,332 11,864 13,888 13,954 11,232 8,442 5,588 Multi-Family 4,710 5,838 8,342 7,414 7,401 6,389 4,169 3,188 Total 17,776 18,170 20,206 21,302 21,355 17,621 12,611 8,776

Distribution Single Family 73.5 % 67.9 % 58.7 % 65.2 % 65.3 % 63.7 % 66.9 % 63.7 % Multi-Family 26.5 32.1 41.3 34.8 34.7 36.3 33.1 36.3

CITY OF MINNEAPOLISUnits Single Family 182 245 279 368 284 224 226 116 Multi-Family 354 780 1,460 745 1,422 1,285 1,531 837 Total 536 1,025 1,739 1,113 1,706 1,509 1,757 953

Distribution Single Family 34.0 % 23.9 % 16.0 % 33.1 % 16.6 % 14.8 % 12.9 % 12.2 % Multi-Family 66.0 76.1 84.0 66.9 83.4 85.2 87.1 87.8

Percent of Metropolitan Area Single Family 1.4 % 2.0 % 2.4 % 2.6 % 2.0 % 2.0 % 2.7 % 2.1 % Multi-Family 7.5 13.4 17.5 10.0 19.2 20.1 36.7 26.3 Total 3.0 5.6 8.6 5.2 8.0 8.6 13.9 10.9

Source: Metropolitan Council and City of Minneapolis. Minneapolis residential building permits increased from 536 units in 2000 to a peak of 1,757 in 2006, as shown in Table 37. Minneapolis captured 3.0 percent of Metropolitan Area building permits in 2000, increased to 13.9 percent in 2006, and declined to 10.9 percent in 2007. During the peak five-year period from 2002 to 2006, 7,824 residential building permits were issued in Minneapolis for an average of 1,565 units per year. This represented 8.4 percent of Metropolitan Area building permits. During this period, multi-family permits represented 82.4 percent of the units.

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E 46th St

E Minnehaha Pkwy

W 35th St

W Lake St/SR-190

E 38th St

34th

Ave

SE 51st St38

th A

ve S

28th

Ave

S

Cle

vela

nd A

ve S

E 32nd St

Hiawatha Commons Townhomes 4th

Hiawatha Square

Trinity on Lake

Greenway Terrace

Cedar 28

Hiawatha Commons Townhomes 3rd

Hiawatha Commons Townhomes 2nd

Hiawatha Commons Townhomes 1st

Corridor Flats

46th & 46th Condos

West River Commons

Olin Crossings

Olin Crossings II

42nd Street Lofts

Hiawatha Commons

Minnehaha Place

Veterans Housing Project

Hiawatha Flats

Vantage Flats

Hiawatha Court Senior Condos

Oaks Hiawatha Station

Hiawatha Trade AreaFor Sale

Rental

Proposed

Trade Area

0 0.2 0.4 0.6 0.8

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HIAWATHA TRADE AREA MULTI-FAMILY HOUSING
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Linda Oie
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Hiawatha trade area residential building permits totaled 856 units between 2000 and 2007, as shown in Table 38. Multi-family units totaled 738 units or 86 percent. Single family, which includes townhomes and twinhomes, represented 14 percent. Building permits began to accelerate in 2003 following beginning of LRT construction. All of the multi-family units, except West River Commons with 53 units, were located within about one-half mile of an LRT station. The Hiawatha trade area captured 819 of the 7,038 building permits issued in Minneapolis between 2003 and 2007. This was 11.6 percent of Minneapolis building permits during that period. Multi-family construction began in 2005, after LRT service began. The 676 multi-family building permits issued between 2005 and 2007 represented 18.5 percent of Minneapolis multi-family permits. The Minnehaha-Hiawatha Corridor study area captured 338 building permits or 50 percent of the Hiawatha trade area building permits.

Table 38

CITY OF MINNEAPOLIS, HIAWATHA TRADE AREA, AND MINNEHAHA-HIAWATHA CORRIDOR STUDY AREABUILDING PERMITS; 2000 TO 2007

2000 2001 2002 2003 2004 2005 2006 2007

City of Minneapolis Single Family 182 245 279 368 284 224 226 116 Multi-Family 354 780 1,460 745 1,422 1,285 1,531 837 Total 536 1,025 1,739 1,113 1,706 1,509 1,757 953

Hiawatha Trade Area Single Family 8 18 8 33 9 15 10 17 Multi-Family 3 6 53 * 114 311 251 Total 8 21 8 39 62 129 321 268

Minnehaha-Hiawatha Corridor Single Family 5 2 1 Multi-Family 61 87 190 Total - - - 5 2 61 87 191

PERCENTHiawatha Trade Area Single Family 4.4 % 7.3 % 2.9 % 9.0 % 3.2 % 6.7 % 4.4 % 14.7 % Multi-Family - 0.4 - 0.8 3.7 8.9 20.3 30.0 Total 4.4 % 7.7 % 2.9 % 9.8 % 6.9 % 15.6 % 24.7 % 44.6 %

Minnehaha-Hiawatha Corridor Single Family 15.2 % 22.2 % - % - % 5.9 % Multi-Family - 0.0 53.5 28.0 75.7 Total - - - 15.2 % 22.2 % 53.5 % 28.0 % 81.6 %

* West River Commons.Source: Metropolitan Council and City of Minneapolis.

Multi-family development along the Hiawatha LRT line between 2003 and 2009 is contained in Table 39. Of the 918 units planned for the LRT Corridor, permits have been issued for 883 units. The Minnehaha-Hiawatha Corridor study area accounted for 567 of these building permits and the Corridor South area represented 351 units. Olin Crossings II, with 35 units, is planned for construction but no permits have been issued. The 46th & 46th Condos was permitted for 27 units, but construction was halted due to slow sales. Not all of the units that were planned or permitted have been completed. In the Minnehaha-Hiawatha Corridor study area, 473 units have been completed and 391 units had been occupied as of late summer 2008. Hiawatha Flats II, with 61 units, is currently under construction and

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scheduled for completion in 2009. In the Corridor South area, 316 units have been completed and 282 were occupied in late summer. Rental units are about 65 percent of the completed units in the Hiawatha LRT Corridor and for sale housing is 35 percent.

Table 39

MULTI-FAMILY DEVELOPMENT ALONG THE HIAWATHA LRT LINE; 2003 TO 200926TH STREET TO 54TH STREET

Year Building Open Planned Completed Occupied

CORRIDOR STUDY AREAFor Sale

Hiawatha Square 2004 16 16 1642nd Street Lofts 2005 13 7 7Hiawatha Court 2005 45 45 4546th & 46th Condos 27 0 0Cedar 28 2006 15 15 11Greenway Terrace 2006 26 26 25Corridor Flats 2007 36 36 25 Subtotal 178 145 129

RentalTrinity on Lake (subsidized senior) 2003 24 24 24Oaks Hiawatha Station 2005 61 61 60Hiawatha Commons 2007 80 80 80Hiawatha Flats I 2007 163 163 98Hiawatha Flats II (UC) 2009 61 Subtotal 389 328 262

Total 567 473 391

CORRIDOR SOUTHFor Sale

Minnehaha Place 2005 90 90 90Olin Crossings-I 2007 49 49 40

ProposedOlin Crossings-II n/a 35 Subtotal 174 139 130

RentalVeterans and Community Housing 2006 140 140 127Vantage Flats (Income Restricted) 2008 37 37 25 Subtotal 177 177 152

Total 351 316 282

SUMMARYFor Sale 352 284 259Rental 566 505 414 Total 918 789 673

Source: McComb Group, Ltd.

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This represents actual absorption of units completed. This indicates that the Hiawatha LRT Corridor has absorbed 648 units between 2003 and 2007, for a market share of 11.1 percent of the 5,820 multi-family units permitted between 2003 and 2007. During the more recent period 2005 to mid-2008, the Hiawatha LRT Corridor has absorbed 633 units or about 180 units annually. Future Multi-Family Demand

Future demand for housing units in the Minnehaha-Hiawatha Corridor is based on household growth in the Seven-County Metropolitan Area. Between 2000 and 2007, Metropolitan Area households increased from 1,021,456 to 1,121,535, an annual growth rate of 1.34 percent. Future growth is based on an assumed growth rate of 1.35 percent, which results in an estimated 1,136,675 households in 2008 and 1,152,021 in 2009. This is an increase of 15,346 households from 2008. The City of Minneapolis is estimated to capture 8.5 percent of this growth. Minneapolis capture is expected to increase to 9.0 percent in 2010 and 9.5 percent in 2011 as a result of changing lifestyles stimulated by higher gasoline prices and a desire to reduce commuting time and costs for some households. Assuming that the City of Minneapolis will capture 8.5 percent of the increased Metropolitan Area households, results in 1,304 new households in 2009. Annual household growth is estimated to increase to about 1,700 in 2020. This represents stabilized growth potential, which can and will vary from year to year. Based on current economic conditions, housing development is likely to be below stabilized development potential for the next two years. Multi-family demand is estimated at 85 percent of total housing demand in Minneapolis. Single family demand is estimated at 15 percent or 196 units.

Table 40

MINNEAPOLIS HOUSING DEMAND; 2009 TO 2020

City of Minneapolis Multi-Family Single FamilyYear Households Increase Percent Households Percent Households Percent Households

2009 1,152,021 15,346 8.5 % 1,304 85.0 % 1,109 15.0 % 1962010 1,167,573 15,552 9.0 1,400 85.0 1,190 15.0 2102011 1,183,335 15,762 9.5 1,497 85.0 1,273 15.0 2252012 1,199,310 15,975 9.5 1,518 85.0 1,290 15.0 2282013 1,215,501 16,191 9.5 1,538 85.0 1,307 15.0 2312014 1,231,910 16,409 9.5 1,559 85.0 1,325 15.0 2342015 1,248,541 16,631 9.5 1,580 85.0 1,343 15.0 2372016 1,265,396 16,855 9.5 1,601 85.0 1,361 15.0 2402017 1,282,479 17,083 9.5 1,623 85.0 1,379 15.0 2432018 1,299,792 17,313 9.5 1,645 85.0 1,398 15.0 2472019 1,317,340 17,547 9.5 1,667 85.0 1,417 15.0 2502020 1,335,124 17,784 9.5 1,689 85.0 1,436 15.0 253

Total 198,449 18,621 15,828 2,793

Source: McComb Group, Ltd.

7-County Metro Area

The Hiawatha LRT Corridor has captured about 20 percent of the Minneapolis multi-family housing development, which is expected to continue for the near term. This would indicate

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stabilized potential for 222 units in 2009, as shown in Table 41. The share of City of Minneapolis housing captured by the LRT corridor is estimated to average 20 percent through 2014 and then decline to 15 percent, as the Central Corridor LRT line opens and provides alternative locations along a LRT line. Stabilized demand is estimated at about 230 units annually for a total of about 2,750 units between 2009 and 2020. As indicated earlier, development potential is likely to be lower over the next two to three years due to economic and credit market conditions. The potential for single family households in the Minnehaha-Hiawatha Corridor study area is very limited and based on past experience, would consist of one or two units per year if sites were available.

Table 41

MINNEHAHA-HIAWATHA CORRIDORANNUAL MULTI-FAMILY HOUSING DEMAND; 2009 TO 2020

City of Minnehaha-HiawathaMinneapolis LRT Corridor Corridor

Year Units Percent Units Percent Units

2009 1,109 20.0 % 222 55.0 % 1222010 1,190 20.0 238 55.0 1312011 1,273 20.0 255 55.0 1402012 1,290 20.0 258 55.0 1422013 1,307 20.0 261 55.0 1442014 1,325 20.0 265 55.0 1462015 1,343 15.0 201 55.0 1112016 1,361 15.0 204 55.0 1122017 1,379 15.0 207 55.0 1142018 1,398 15.0 210 55.0 1152019 1,417 15.0 213 55.0 1172020 1,436 15.0 215 55.0 118

Total 15,829 2,749 1,512

Source: McComb Group, Ltd. Of the multi-family housing that has been constructed to date, about 65 percent has been rental and 35 percent for sale housing. This ratio between rental and ownership is likely to continue in the future.

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Chapter VIII

MINNEHAHA-HIAWATHA CORRIDOR STUDY AREA ASSESSOR’S ESTIMATED MARKET VALUE

Real property located in the Minnehaha-Hiawatha Corridor study area had an assessed value of over $336 million as of January 2, 2007. This is the value on which property taxes are payable in 2008. Single family homes, townhouses, and zero lot line homes totaled $114.8 million or about 34.1 percent of the market value. Condominiums, including apartment conversions and new buildings, totaled $8.0 million or 2.4 percent of the assessor’s estimated market value. Multi-family rental, estimated at $48.1 million, represented 14.3 percent of the assessor’s estimated market value.

Table 42

ASSESSOR'S ESTIMATED MARKET VALUEMINNEHAHA-HIAWATHA CORRIDOR STUDY AREA

(Taxes Payable 2008)

Estimated Market ValueType Land Building Total Percent

ResidentialSingle Family 23,201,700$ 89,087,500$ 112,289,200$ 33.4 %Townhouse/Zero Lot Line 373,600 2,157,400 2,531,000 0.8Multi-Family

Two Family 4,603,800$ 20,829,200$ 25,433,000$ 7.6 %Three Family 501,400 2,384,100 2,885,500 0.9

Condominium/CooperativeConversion 318,100 1,348,900 1,667,000 0.5 %New 799,400 5,563,400 6,362,800 1.9

Multi-Family Rental 6,220,800 41,903,200 48,124,000 14.3Subtotal 36,018,800$ 163,273,700$ 199,292,500$ 59.2 %

Commercial/IndustrialCommercial 35,406,700$ 49,438,400$ 84,845,100$ 25.2 %Industrial 17,355,200 31,425,900 48,781,100 14.5

Subtotal 52,761,900$ 80,864,300$ 133,626,200$ 39.7 %

Vacant LandResidential 230,900$ 230,900$ 0.1 %Apartment 796,800$ 796,800 0.2Commercial 1,083,700 1,083,700 0.3Industrial 1,365,100 1,365,100 0.4

Subtotal 3,476,500$ -$ 3,476,500$ 1.0 %

Total 92,257,200$ 244,138,000$ 336,395,200$

Source: Hennepin County Assessor. Commercial/industrial property totaled $133.6 million or 39.7 percent of the assessor’s estimated market value. Commercial property consisting of retail and office totaled $84.8 million or 25.2

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percent of the assessed value. Industrial property totaled $48.8 million and accounted for 14.5 percent of the estimated market value. Vacant land was a relatively small component, $3.5 million representing one percent of the assessor’s market value. Mortgage Foreclosures

Mortgage foreclosures in 2007 and 2008 through April 10 in the Minnehaha-Hiawatha Corridor study area are contained in Table 43 along with foreclosures for the Hiawatha trade area and the City of Minneapolis. During this period, the City of Minneapolis had 3,112 foreclosures. Four hundred or 12.9 percent were located in the Hiawatha trade area and 37 were located in the Minnehaha-Hiawatha Corridor. Distribution of foreclosures in south Minneapolis is contained on Map 32. The heaviest concentration of foreclosed mortgages is in the area south of I-94 between Cedar Avenue and Nicollet Avenue. The density of foreclosures is lower in the Hiawatha trade area.

Table 43

MORTGAGE FORECLOSURES: 2007 AND 2008 THROUGH APRIL 10MINNEHAHA-HIAWATHA CORRIDOR, HIAWATHA TRADE AREA

AND CITY OF MINNEAPOLIS

Minnehaha-HiawathaCity of

Year Number Percent Number Percent Minneapolis

2007 32 1.5 % 310 14.2 % 2,183 YTD 2008 5 0.5 90 9.7 929 Total 37 1.2 400 12.9 3,112

Source: Hennepin County Website 4-16-2008.

HiawathaTrade AreaCorridor

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Minneapolis

M d t

Li

Port

land

Ave

S

E 43rd St

Crosstown Hwy/SR-62

E Minnehaha Pkwy

W 33rd St

Lynd

ale

Ave

S

E 35th St

E Franklin Ave

E Lake St

E 38th St

E 54th St

E 46th St

E 40th St

46th

Ave

S

Ced

ar A

ve S

E 51st St

28th

Ave

S17th

Ave

S

Cle

vela

nd A

ve S

E 34th St

E 32nd St

E 35th St

I-94/US-12

W Summit Ave

N F

ry S

t

2007 and YTD MortgageForeclosures

Foreclosures

Minnehaha-Hiawatha CorridorHiawatha Trade Area

0 0.4 0.8 1.2

Scale: 1" = 0.95 miles

Map produced w

ith Scan/U

S

10/23/08

Linda Oie
Map 32
Linda Oie
MORTGAGE FORECLOSURES: 2007 AND 2008 THROUGH APRIL 10
Linda Oie
Copyright© 2008 by McComb Group, Ltd.
Linda Oie
(Source: Hennepin County Website 4/16/08)
SMN
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