BEMIDJI 鈥� Following a slowdown in 2023, Bemidji could be on track for a stronger economic year in 2024, according to a presentation provided by Greater Bemidji to the Bemidji City Council on Monday.
Dave Hengel, the executive director of the economic development organization, gave an annual report to the city council during its meeting, outlining the organization鈥檚 purpose and goals while providing an overview of the regional economy.
ADVERTISEMENT
According to Hengel, despite a slowdown in 2023, this year could be a return to the positive, long-term economic growth Bemidji鈥檚 become accustomed to.
鈥淚t鈥檚 going to be a good year this year, I feel it already,鈥� Hengel said. 鈥淭here鈥檚 a different energy.鈥�
Hengel attributes last year鈥檚 slower numbers to a feeling of economic uncertainty, something he expects to ease as this year continues.
鈥淭he interest rates were higher, we had inflation, and then of course there鈥檚 this continuing recession buzz and what that creates is a sense of uncertainty,鈥� Hengel explained. 鈥淯ncertainty and economic development don鈥檛 go well together, so I think that鈥檚 what happened last year.鈥�
One of the figures Hengel focused on in 2023 was a decrease in new construction, which went from $33.2 million in 2022 to $22.5 million last year.
There鈥檚 also been a tightening of the labor market, with businesses across the area struggling to find workers.
The unemployment rate also increased slightly, to around 3.6%, as the area attracted more workers than it created new jobs. This percentage is still within the range that is considered healthy, which typically sits between a rate of 3% and 5%.
ADVERTISEMENT
When looking long-term, however, Hengel said Bemidji is still going strong, with wage increases over the past decade outpacing inflation and the micropolitan area currently ranked
鈥淭he standard of living has indeed improved in our region over the last decade, which is exactly what we want,鈥� Hengel said. 鈥淲e鈥檝e had very strong sustained growth, and this region鈥檚 done well in comparison to our partner cities and micropolitan areas.鈥�
That鈥檚 not to say there aren鈥檛 challenges remaining, with Hengel sharing Greater Bemidji鈥檚 priorities for this year. These included continuing to support development at the Bemidji Regional Airport and the industrial park and developing a stronger workforce through investments in areas like housing and child care.
鈥淓conomic development is a race for people now. Housing becomes important, child care becomes important and recruiting people to your town becomes important,鈥� Hengel explained.
The topic of developing Bemidji鈥檚 rail corridor also came up, as an update to the project planning to build a wellness center in the area. Last year the project was put on hold following Sanford Health pulling out from owning and operating the center.
Following the change, Greater Bemidji paused fundraising efforts for the project and began searching for another partner to operate the facility.
鈥淲e鈥檒l have some important and exciting news for you, hopefully in the next couple of weeks,鈥� Hengel hinted. 鈥淚 think one of the most important decisions our board made was not to end the wellness center and rail corridor development. They could have, but they didn鈥檛.鈥�
ADVERTISEMENT
Councilmembers thanked Hengel for his time and shared some of their thoughts. Among them were the importance of attracting jobs that pay a livable wage and supporting opportunities for individuals to move out of renting and into homeownership.
鈥淲hat (Greater Bemidji is) focusing on, is I think what the community needs,鈥� said Ward 5 Councilor Lynn Eaton.
Housing and other business
The council also approved a resolution to support a project headed by the Headwaters Regional Development Commission and the Beltrami Housing Redevelopment Authority that would create 39 units of affordable housing.
The project was first presented to the council last week during its work session, with a request that the council consider being the applicant for a deferred loan for an amount not to exceed $3 million. The council expressed its support at the time, and similarly supported the project during Monday鈥檚 meeting.
One adjustment was made, with staff from the HRDC and the city to examine the possibility of an addendum that would place the responsibility of repaying the loan not to be placed on the city if the project didn鈥檛 meet the requirements for forgiveness.
The council also approved a memorandum of understanding with Sanford Health for a proposed extension of 34th Street Northwest to Hannah Avenue Northwest as a part of the meeting's consent agenda. The costs would be split between the city and Sanford Health.
The Trust Project
