Crosby hopes trail leads to better days
CROSBY - When Linda Peeples opened her gift store in Crosby in the fall of 2007 an economic downturn hitting small town main street wasn't a concern.
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Not in a growing lakes area, surely.
But the recession took hold, displaying a reluctance to ease its grip. Peeples said she had to work harder to bring in customers. She advertised more and worked to attract artisans and crafts people for her inventory. Peeples said she was able to expand her business and now sees more traffic from two businesses that recently opened nearby.
For people accustomed to making money in a seasonal tourist-driven economy, winters provide a perennial challenge. Now Johnna Johnson, Cuyuna Range Chamber of Commerce director, said businesses have to work even harder to attract consumers, whether they are area residents or visitors.
The Cuyuna Range Chamber of Commerce estimates there are about 50 businesses in Crosby's downtown business district. There are about 11 empty store fronts. But three new businesses recently opened downtown and another is building. And there are reasons for hope. Brainerd Dispatch/Renee Richardson» Purchase reprints of this photo.
The Cuyuna Range isn't a stranger to the changing economic conditions. The founding of the area cities came with the iron ore boom of the 1920s followed decades later by the closing of the last of the range's mines.
Mine pits became clear lakes, attracting hundreds of scuba divers on a given summer weekend and appealing to recreational users. Crosby rebranded itself as the antique capital and found a retail niche.
But this deep and lengthy recession left Main Street retail, like many other industry sectors, struggling to make ends meet.
Eleven store fronts on Crosby's Main Street sit empty. But that number is lower than it was. Three businesses, with a focus on bargains and thrift purchases, recently opened their doors. And two more - a lumberyard and liquor store - are expected to open within months.
The liquor store is being constructed on the former Houston Ford auto dealership lot, once known as Carney Middleton Ford. It's the end of an era of having an auto dealer in the city.
Johnson said several area families are now "work widows" as married moms lead a single life. Their husbands, who couldn't find work here, got jobs out of state and return for weekends or monthly visits. The quality of life in the area keeps the families from leaving, Johnson said.
This fall, three businesses closed within days of each other. The largest hit came from the closing of a community mainstay - Gary's Sports Bar and Pine Room in Ironton. Owner Gary Cash said the recession forced people to cut back on spending and he couldn't meet the daily operating costs of running the business. Cash said the last year and a half was a major struggle and he couldn't see a way to stay open any longer.
"That was huge," Johnson said of the Gary's Sports Bar closing. The business had been a community staple for gatherings from weddings to meetings. Once Gary's closed, Johnson said other business owners were wondering if they were going to make it through the winter.
First signs of trouble
One of the recession's first victims came when Weyerhaeuser Co.'s Deerwood plant closed two years ago in the aftermath of the housing market meltdown. The plant, which produced engineered strand lumber, employed 158.
Even with the economic challenges, Johnson said she wouldn't describe the situation as bleak.
"The area has definitely been impacted by business closings and contractions like most Minnesota communities, but there is a group of diligent community leaders working tirelessly on new community and economic development opportunities," said Sheila Haverkamp, Brainerd Lakes Area Development Corp. executive director.
Linda Peeples, owner of Gifts Galore in Crosby, opened her store just before the economy hit the skids. She said customers are still buying birthday and Christmas gifts. But she's seen a change in what they are buying. She said now customers are looking for more practical items - dish towels, mittens, scarves and hats. Brainerd Dispatch/Renee Richardson» Purchase reprints of this photo.
BLADC oversees the Cuyuna Range Economic Development Inc. Haverkamp listed projects such as new trails, mountain biking initiatives, tourist attractions, downtown housing and commercial rehab, new housing options, medical center enhancements and new job opportunities for area residents.
"The people of the Cuyuna Range are rolling up their sleeves and recreating their community," Haverkamp said.
Hopeful signs
Graphic Packaging Inc. in Crosby employs about 99 people now. Before the recession, the manufacturer typically employed about 115 to 120. But like many businesses, Graphic Packaging's customers aren't spending money - at least just yet. Greg Mangan, director of operations for packaging, machine division, in Crosby, said - from conversations with other area manufacturers - there is a sense of growing pent-up demand for the machinery they build.
Eventually those customers will have to buy the machinery they need in order to make their own products, Mangan said.
"I think things are picking up," Mangan said, adding that it's too early to know with certainty. "We think 2010 will be better. I'm optimistic it will be better."
An optimistic sign is coming from the amount of customers looking for business quotes, Mangan said. But those customers are still being cautious about cash flow and spending on capital improvements.
Part of Crosby's identity now comes from the Cuyuna Regional Medical Center campus. The medical center completed a multi-phase $16 million expansion a year ago. The medical center employs 702. That's up from 659 in the fall of 2007. Those numbers do not count the Central Lakes Medical Clinic or other partners such Crosby Eye Care and the Minneapolis Heart Institute. Counting the partners, there are about 900 people employed on the medical campus in the city.
Tom Reek, CRMC chief executive officer, said even with the economy the medical center has experienced 10 percent growth, namely from the Heartwood Senior Living Center on campus. At the medical center, overall growth has been flat for two years, Reek said. The medical center's uncompensated care numbers - bad debt and charity care - increased from $982,316 for the fiscal year ending in March 2007 to $1,730,703 for the FY ending in 2009.
The medical center cut $3 million out of its budget in the last three years to adjust to the economy, Reek said. There haven't been layoffs but management salaries were frozen for the past six months. Recruitment, which was a struggle before the recession, is no longer an issue as people hold on to the jobs they have. Growth is expected as the medical center is adding an orthopedic surgeon next summer.
Reinventing the range
Much of the area buzz is centered on two-wheeled recreation. The planned mountain bike trails in the Cuyuna Country State Recreational Area are considered a ray of hope and something that is a common conversation thread.
Theresa Sullivan, chief operating officer at CRMC, said there is a lot of enthusiasm regarding the project. Is it going to be another evolution of the area's history? She pointed to the area's natural beauty as a strength and a population that is really looking to the future.
"I think this community has always had a 'we can do it'" attitude, Sullivan said.
Johnson said bargain stores opening in the community give residents options for shopping at prices that are below even big box retailers in Baxter. In addition, Johnson said, the economy has business owners working together in ways and in numbers they didn't before.
A Christmas in the Park event is planned from 4-7 p.m. Wednesday at Crosby Memorial Park with horse-drawn sleigh rides, bonfires, food, music and fireworks. Local retail businesses help sponsor the event.
A Cuyuna Country Soup Walk from 11 a.m. to 2 p.m. Dec. 12 will feature area businesses offering discounts, bargains and gift certificates as people travel downtown sampling soups and building their own custom soup cookbook. Johnson said businesses are staying open later and opening on Sundays to attract area residents.
But Johnson said the biggest economic boom may be coming with the 20-plus miles of mountain bike trails being constructed next summer. She pointed to the online buzz about the trails from blogs and Web sites far removed from the Cuyuna Range.
"So we know the user groups are there," Johnson said.
The Cuyuna Range Visioning Committee took a field trip to Cable, Wis., looking at what the bike trails did for that region. The Wisconsin area had six cities with a population of 3,784. The Cuyuna Range has seven cities with total population of 4,885 people.
Johnson said on a 5.5-mile stretch of Highway 63 in Wisconsin with a population of less than 95 people not far from a trail, previously home to seven residents now has 51 homeowners. Most are second homes with an average value of $300,000 with homeowners spending an average of $17,571 annually in the community. The trail there is estimated to draw 25,000 riders per season.
In Cable, Wis., Johnson said the town, with a population of 300, was selling 200 pizzas on a Thursday. Looking at the potential to attract tourists, regional bike enthusiasts, second home owners and new residents interested in living near their outdoor recreation options, Johnson said businesses can see the economic potential around the corner.
Johnson said: "When you talk to business owners now, the hope is there."
RENEE RICHARDSON may be reached at renee.richardson@brainerddispatch.com or 855-5852.