06-09-1997 Council Packet - Laserfiche WebLink

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r To the City Council and Citizens of the City of Orono April 29. 1997 Economic C ondition and Outlook The City of Orono was incorporated effective January 1, 1955. The City is located on the northern shore of Lake Minnetonka about 15 miles west of Minneapolis. Of the City’s 24.5 square miles of area, 50% is open water or marshland (with a total of 12.3 square miles of land area). Of Lake Minnetonka, 40% of the shoreline and 33 % of the lake area is in Orono. The City of Orono is a third ring suburb in the seven-county metropolitan Twin Cities area of Minneapolis/St. Paul, and is located on Lake Minnetonka, the tenth largest and most heavily used recreational lake in Minnesota. Orono developed primarily because of this aesthetic amenity. This heavy use is a result of the quality of the lake’s aesthetic appeal, together with its proximity to the metropolitan urban core. The City is primarily a residential community with a mixture of several types of housing, and includes a small commercial district. Orono totally surrounds two communities, which are part of the original township, and substantially surrounds a third community. As indicated earlier, Orono cooperates with these cities for the most cost effective provision of City services. Orono is home to many of the metropolitan area’s top executives who appreciate the community ’s natural amenities. It is anticipated that the positive appeal of the community, togetlier with the extent of available land, will see the community experiencing continued development for the next ten years. The City is in a strong financial position. Because of its strong residential tax base, Orono continued in 1996 to have a tax capacity rate that is one of the lowest in the county for communities over 1,000 in population, ranking fourth lowest of 40 communities. The strength of the City’s financial condition is reflected in its bond rating of Aal since 1989. In 1996, residential construction continued at a strong level. Building permit and plan review fees significantly exceeded expected levels. Even with the uncertainty concerning the Highway 12 corridor location, the improvement in the economy generated substantial residential development activity. A 6C-unit subdivision, approved in 1994, continued to generate a high level of residential development activity in 1996. The Navarre commercial area will receive a shot-in-the-arm from three redevelopment projects - one recently completed, one approved for construction, and one in the planning stages. These projects are as follows: A Culvers restaurant and convenience store/service station. This project is complete. The local grocery store has been approved for an expansion project which will include the addition of a pharmacy. The developer of the Culvers project is planning additional development which will be a bank/office/commercial building on an adjacent site. It is anticipated these projects will serve as a catalyst for additional improvements in the Navarre area. -4- 1 . ! t