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Economic indicators give cities positive signs

Posted: February 11, 2011 - 6:51pm
Brainerd Dispatch/Steve Kohls
Motorists traveled along Edgewood Drive by Highway 371 in Baxter on Friday afternoon. Just how severe the recession was in term of sales is visible in Baxter’s sales tax collection, which dropped 8 percent between 2008 and 2009. Sales tax collection for 2010 — which goes from October of 2009 to September of 2010 — showed a 2.1 percent increase.

If the Great Recession could be thought of as a tide pulling water away from shore, 2010 numbers at least show some of it is trickling back. 

It’s not the type of tide that is raising all boats, but at least the water seems to be flowing in the right direction.

Economic indicators — in some cases measured by an increased interest in development here — are more positive than last year. 

“We feel more positive about the future in terms of actually issuing construction permits for projects,” said Gordon Heitke, Baxter administrator. “We haven’t hit it yet, (there) just seems to be more interest. The phone is ringing more now and people are coming to the front desk looking for information more than they were last year. At least it’s going in the right direction.”

Just how severe the recession was in term of sales is visible in Baxter’s sales tax collection, which dropped 8 percent between 2008 and 2009.

Perhaps the recession has been so long and so deep the silver lining is seen from a number that wasn’t continuing to plummet. While still measured against an 8 percent drop, sales tax collection for 2010 showed a 2.1 percent increase and that doesn’t count the 2010 Christmas shopping season. Baxter counts its sales tax collection year as October through September.

Before the recession hit for real, Baxter had a 2.9 percent increase in sales taxes collected between 2006-2007 and 2007-2008. Even with the increase shown in 2009, there is a big gap compared to where things were. 

The Brainerd Lakes Chamber recently hosted morning business meetings and updates at the city halls in Brainerd and Baxter.

Baxter, which has the lion’s share of hotels between the two cities, also provided lodging tax collections statistics between 2006 and 2010. 

 

In 2006, Baxter collected $263,574. Tax collections increased 9.1 percent in 2007 to $287,486 before the drop began. 

In 2008, collected lodging taxes equaled $282,654, a 1.7 percent decrease from the previous year. 

 

Then the bottom fell out with an 11.2 percent decrease for 2009 to $251,007. For 2010, a rebound was evident with a 5.9 percent increase to $265,889 — which is still significantly below levels three years ago when the economy changed.  

Dan Vogt, Brainerd administrator, said the city is getting inquiries, pointing to more opportunities as people research potential sites. 

Vogt said Brainerd is well positioned for an economic turnaround with available industrial land and electrical system upgrades for attractive and lower cost energy. Brainerd now has more load capacity for business and industry, Vogt said. 

“We are seeing an up-tick,” said Sheila Haverkamp, executive director at the e Brainerd Lakes Area Development Corp. Haverkamp noted there are potential projects with an interest in the lakes area that could lead to jobs here, which is what BLADC is working to do — attract potential employers to the area and assist existing companies interested in expansion. 

“I truly believe we can make a difference in our economy,” Haverkamp said. “If we work through these strategies, we will grow and have jobs and economic development opportunities for our people.”

 

RENEE RICHARDSON may be reached at renee.richardson@brainerddispatch.com or 855-5852.

 

Brainerd/Baxter

 Population estimates as of 2009: Brainerd — 13,956. Baxter — 7,921.

 Brainerd sales tax —$804,395 in 2008, $854,392 in 2009, $815,000 in 2010.

 Baxter sales tax — $2,014,097 in 2008, $1,853,029 in 2009, $1,892,348 in 2010.

 Baxter accounts for 25 percent of all jobs in Crow Wing County.

 

Sources: Cities of Brainerd and Baxter.

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Goodbyekitty
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Goodbyekitty 02/12/11 - 03:14 pm
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I can see the clouds breaking away already...

I fail to see any positive signs. I've been laid off for more than half a year now with no hopeful prospects in sight. Of course it doesn't help that you have places like the ERC and all the rest of the temp agencies snagging up all the jobs that would otherwise be listed in the paper, but regardless, I see very few 'positive signs' about the economic future of this city.

moonhawk
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moonhawk 02/13/11 - 02:41 pm
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thanks bladac

they are trying to take credit for no improvment yet! they should chant 'WE'RE number 1,WE'RE NUMBER 1" in unemployment in the whole state! those tax dollars were totally wasted. then there's the teamsters full page add-crooked union-represents law enforcement???

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