Attracting New Development in Inver Grove Heights: Trickier Than It Sounds?

Is Inver Grove Heights well-positioned to attract new businesses and development, or is it hindered by unique obstacles that discourage commercial growth?

The answer is both, according to a bevy of city officials and community members.

This year, Inver Grove Heights took several steps that local officials say will help the city improve its "business-friendly" image, including , a $ and .

As the economy improves, Community Development Director Tom Link hopes the the city's recent efforts will bear fruit for the city's business community. But he and other local officials say the city still faces some innate challenges that impede its hunt for new development.

Chief among those, according to Progress Plus representative Ellen Watters, is Inver Grove Heights' own geography. Progress Plus, which is not affiliated with the city, serves as a link between city officials, the River Heights Chamber of Commerce and prospective developers or entrepreneurs looking for more information about the city.

The city is hemmed in by the likes of Eagan, Woodbury and West St. Paul, which all have extensive commercial centers and thus, a competitive advantage over Inver Grove, both Link and Waters said.

The city's relatively low residential density is also a factor. Retailers hunt for a high number of "rooftops" when scouting for building locations, Waters said. Because of its rural south side, Inver Grove Heights doesn't have the residential density rates that many retail companies look for as a pre-requisite for development, Waters said.

Even the Mississippi River plays a part in the city's difficulty attracting new development, Waters said. Because residents of Woodbury and Cottage Grove aren't likely to cross the river to shop or do business, the river effectively shrinks the city's market area—another red flag for developers, Waters said.

Every community is having difficulty promoting new development because of poor economic conditions, said River Heights Chamber of Commerce President Jennifer Gale.

But Gale said Inver Grove Heights also has fewer economic development tools—like a revolving loan program for businesses, a Housing and Redevelopment Authority and a commercial rehabilitation program—than other neighboring communities.

That's why Gale believes the re-establishment of the city's Economic Development Authority is so important to the growth of Inver Grove Heights' business community.

The creation of the EDA effectively expands the city's powers in the realm of economic development, Link and Gale said. The board—which is currently made up of Inver Grove Heights City Council members and has independent tax levying authority—last week approved a land acquisition program that allows it to purchase and hold property for business development. The EDA also has the ability to issue small business loans to local businesses to help them expand, survive a road construction project or market themselves, among other purposes.

“The creation of the EDA, we think is a very good thing, because it allows the city to focus on what it can do to attract and create business," Gale said.

The city also has excellent access to major transportation routes and nearby amenities, like the Mall of America and Minneapolis-St. Paul International Airport, Gale and Link said. The development of Target should also serve as a catalyst for additional retail development, city officials said.

Another thing Inver Grove Heights has working in its favor, Mayor George Tourville said, is its available land. Unlike South St. Paul, Inver Grove has plenty of open land with access to city utilities—a necessary ingredient for attracting developers, the mayor said.

Tourville says he gets two to three inquiries a month by potential developers or business owners. The city, he says, doesn't have a tougher time attracting businesses than its neighbors.

However, development has to happen on the city's terms, Tourville said.

“I hear people say 'Leave Inver Grove the way it is; we don’t need more businesses.' I also hear people say 'Bring the businesses that bring jobs,'" Tourville said. "We’ll work for it, but we’re not going to give it away 100 percent. If you win at the negative expense of the city, then there is no benefit to the citizens."

"I see that the city as having a lot of positives and having a lot of potential in the coming years," Link said.