MIDDLE MARKET HIGHLIGHT, NOVEMBER 2007

St. Cloud
Dan Marcec

Situated in central Minnesota, the greater St. Cloud area is served by Interstate 94, as well as U.S. Highway 10 and Minnesota highways 23 and 15. While St. Cloud is in close enough proximity to the Twin Cities metro area to reap the benefits of that location, it is far enough away to enjoy significantly lower land prices. The affordable land, combined with benefits from JOBZ incentives, makes the region a financially attractive option for developers.

Currently, the Minnesota Commercial Association of Realtors (MNCAR), along with St. Cloud area real estate firms and the real estate department at St. Cloud State University are undertaking a collaborative enterprise to compile data for better up-to-date information about the commercial, industrial and office market in central Minnesota.

“The greater St. Cloud area is a major hub for healthcare, higher education, retail, manufacturing, financial services and business services,” says Henry Fischer, development director for the St. Cloud Area Economic Development Partnership. “The CentraCare Health System and St. Cloud Hospital are in the midst of planning a $200 million expansion project that will create more than 500 new jobs in the next few years. This project is in the wake of construction of the $11.6 million ambulatory surgery center along with expansion of the Coborn Cancer Center at the CentraCare Health Plaza.

“Partners for Strategic Growth, a regional initiative, identified six target industry clusters for new business attraction that build on regional strengths and offer the promise of creating high-paying jobs,” Fischer adds. “These industries include high-tech manufacturing; printing and publishing; business and financial services; bioscience and health services; engineering and management services; and wholesale trade.”

ING Direct is in the midst of a major expansion, building a 75,000-square-foot headquarters facility in downtown St. Cloud, Minnesota. The building is scheduled to open in April of next year.

Development has been relatively strong throughout central Minnesota recently, and pockets of expansion are popping up as a result. ING Direct currently is in the process of a major expansion, with a new building being constructed next to a new five-level municipal parking structure in downtown St. Cloud, and an information services high-tech cluster set to be developed downtown, creating state-of-the-art telecommunications capacity. Further, a new public library is nearing completion, and construction of the new Sauk Rapids Bridge will be completed this month, providing easier access to the city’s downtown redevelopment district.

Other significant developments in the area include the St. Cloud I-94 Business Park, which is almost fully built out thanks to Arctic Cat’s recently completed project, as well as Goldleaf Plastics, Anderson Trucking Service’s worldwide headquarters and a new Federal Express distribution center. An additional 100 acres have been purchased for future construction. The Minnesota Army National Guard also has started construction at the St. Cloud Regional Airport on its new Air Service Facility, which will be a base for six Blackhawk and six Chinook helicopters. St. Cloud Airport Business Park, which is situated nearby, is offering 300 acres of shovel-ready sites at $1.25 per square foot, among the lowest cost in the region.

At St. Cloud State University, an $11.3 million annex to the Robert H. Wick Science Building is underway, adding 24,000 square feet of lab classroom space; that project should be complete by year-end 2008. Additionally, a 500-stall parking ramp is being built on campus as well. This $9 million project expects to be in service by summer 2009, including 300 slots for visitors and 200 overnight spots for students.

“There’s no question that vibrant downtown cores are part of the formula for healthy communities and economic development,” Fischer says. “What’s most interesting about St. Cloud’s downtown area now is the emergence of what is becoming known as Minnesota’s ‘Silicon Prairie.’ Some 20 high-tech information services businesses have located within a five-block area in the vicinity of Qwest Communications’ central office, which provides a telecommunications hub capacity on par with that of Minneapolis.”


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