CHAPTER 2

ECONOMIC DEVELOPMENT

2.1 Background

This is the second of nine chapters that comprise Park Falls Comprehensive Plan.

The economy of the Park Falls area is primarily based on natural resources. Historically, the timber in the region provided the very reason for the community’s existence, with several lumber mills located in Park Falls. The lakes, rivers and wooded setting of the Park Falls area have attracted visitors from southern Wisconsin and Illinois for many years, and tourism has become a significant factor in the area economy. Numerous resorts are located on the lakes and rivers, and the Chequamegon National Forest, Price County Forest and nearby Flambeau River State Forest offer thousands of acres of recreational opportunities.

A. Previous Studies

“Comprehensive Economic Development Strategy”

Price County is one of ten counties that the Northwest Regional Planning Commission (NWRPC) assists with economic development. To maintain the federal designation, NWRPC prepares a Comprehensive Economic Development Strategy (CEDS) report for each county and municipality which includes the City of Park Falls. Included in this report is the community and economic development project title and description, proposed year of implementation, estimated cost, estimated jobs retained/created and local priority ranking. The projects begin in 2008 and extend through 2012. It serves as a summary for accomplished projects and as a list of target projects hoped to be completed in future years, depending on finances. Refer to Attachment #2 beginning on page 24 in “Issues and Opportunities” for the City of Park Falls CEDS new projects list.

“Wisconsin Business Retention and Expansion Study”

This study was prepared in 2001 by the Price County Development Association. The purpose of this study was to create a confidential, comprehensive data profile on businesses in the community in order to develop a systematic approach to retention. Re-studies also served as a follow-up; indicating how economic changes have impacted the business community, determining current needs and plans, and verifying past situations have been corrected. These programs enabled the community to develop a targeted retention program as well as identify those areas where it could assist local communities in their retention efforts.

An overall objective of the business retention and expansion project was related to the process itself. By conducting personal interviews to obtain the survey data, business executives were provided an opportunity to have their opinions listened to and passed directly on to municipal representatives. It was a positive step for local government toward understanding the implications of their policies for this very important segment of the community. The underlying goal was to be responsive to business needs.

“Price County Economic Development Diversification Plan”

The NWRPC prepared this plan for Price County in 2001. The following is an overview of the goal and objectives pertaining to the Price County Economic Development Diversification Strategy Plan.

GOAL: “PROMOTE A PROGRESSIVE PRO-BUSINESS CLIMATE TO ATTRACT AND DEVELOP NEW BUSINESSES WHILE FOSTERING THE GROWTH, SUCCESS, AND EXPANSION OF EXISTING BUSINESSES.”

Objective #1: “Build Economic Development Capacity within Price County”—This will be accomplished through improving availability of business technical assistance, increasing access to capital (including county revolving loan funds and venture capital) and by assisting marketing efforts of available commercial real estate. A unified county effort will enhance the possibilities for success through consolidation of necessary resources.

Objective #2: “Attract and Recruit New Businesses to Diversify Price County’s Economy”—A need has been identified to place an emphasis on development and/or relocation of science-based technology businesses (i.e. high-tech agriculture, electronics, manufacturing and wood products) that will compliment existing companies. These science-based technology businesses have the ability to utilize renewable resources, provide potential new markets for raw materials and waste by-products and create higher-waged job opportunities. In addition, inclusion in a Northern Technology Zone that encompasses Price County will be pursued as an added incentive for business development and/or relocation.

Objective #3: “Continue to Foster the Growth and Success of Existing Businesses”—The future success of many of Price County’s Businesses will be dependent upon adoption of cutting-edge technologies that require higher-skilled labor and yield a lower unit cost of production. Implementation of these changes can be supported by providing technical and financial resources and through creation of new localized workforce training programs.

“City of Park Falls Community Economic Development Plan”

This plan was prepared by NWRPC in 1999 for Park Falls. The planning process consisted of a number of activities designed to measure the success of the previous plan; identify new opportunities present in the community and the restructuring of the existing organization to facilitate implementation of new goals. The activities started with a survey of Park Falls area businesses which was compared to the survey completed in the early nineties. This survey indicated a generally improved attitude towards economic conditions and identified a number of new projects for the city to undertake. The survey also showed an improved measure of satisfaction with city activities except for sewer, water, street and sidewalk conditions in the downtown area which were addressed over the next several years.

B. Economic Development Issues

AGING POPULATION

Students are leaving the area after high school graduation for universities, technical colleges, military careers or jobs, and they are not coming back. As a result the area is becoming a haven for retired individuals wishing to enjoy the natural resources and quiet atmosphere in Park Falls. The median age in Park Falls is over 42 years old and will continue to climb if a change does not occur. This is six years above Wisconsin’s figure and a concern for the community. The enrollment numbers at Park Falls School District have steadily decreased and school district consolidations are apparent. The impact of an aging population will have a negative effect on the work force in the next several years. By 2020 the working-aged population 60 years of age and older in Price County is estimated between 40.1 and 49.3 percent. If younger people don’t move to or stay in the area, there will be an appreciable work force shortage. One example of such a company that would be affected is Flambeau River Papers, Inc. and it could be devastating to the local economy. With new attractions, developments and beautification, an enthused generation may be tempted to reside in the Northwoods; however, a balance between offering fresh ideas that appeal to a younger population and activities for an older generation need to be maintained.

Figure 12

AGE DISTRIBUTION-2000

	Park Falls		Price County		Wisconsin
Age	Number	Percent	Number	Percent	Number	Percent
Under 5	132	4.7	770	4.9	342,340	6.4
5 to 9	180	6.4	1,027	6.5	379,484	7.1
10 to 14	206	7.4	1,199	7.6	403,074	7.5
15 to 19	205	7.3	1,117	7.1	407,195	7.6
20 to 24	102	3.7	573	3.6	357,292	6.7
25 to 34	268	9.6	1,619	10.2	706,168	13.2
35 to 44	410	14.7	2,465	15.6	875,522	16.3
45 to 54	366	13.1	2,356	14.9	732,306	13.7
55 to 59	137	4.9	880	5.6	252,742	4.7
60 to 64	120	4.3	835	5.3	204,999	3.8
65 ot 74	247	8.8	1,449	9.2	355,307	6.6
75 to 84	247	8.8	1,051	6.6	251,621	4.7
85 and Over	173	6.2	481	3	95,625	1.8
Median Age	42.3	(X)	42	(X)	36	(X)

Source: US Census Bureau, 2000

INDUSTRIAL SPACE

Park Falls has been successful in filling both of its industrial parks and is currently studying ways to enhance the existing parks or develop a new park. Manufacturing or industrial buildings are also needed to accommodate future developments. Future goals of the community will include both industrial park development and industrial building creation. The City of Park Falls will also support industrial park development by other municipalities in the Park Falls trade area.

ADEQUATE EMPLOYEE TRAINING

With the increased population of older individuals and students not returning to the area, companies in Price County such as Marquip are seeing a shortage of adequate employee training. The strategy is to work with Northcentral Technical College (NTC), Park Falls and area school districts to develop a local business training program. The program would be designed to provide training for area young people that allow them to work or find jobs in the immediate area.

C. Existing Economic Development Activities

One of the focal points Park Falls wishes to have is an inviting atmosphere to entice engaging entrepreneurs. This involves three types of programs: business attraction, business retention, and commercial/industrial development.

Attracting and Retaining Business and Industry

Attraction deals with alerting others to what a community has to offer. Whether it be natural resources, retail stores or industries, it is difficult to grow as a business if people have not heard of it. Some activities used for a business attraction program include:

· Providing updated information on available sites

· Identifying characteristics in a community (labor, population, etc.)

· Offering financial assistance incentives—grants, revolving loan funds

· Target locations that compliment diversified groups and market them

Just as significant as attraction is business retention. Statistics show that only four of ten businesses will survive after the first five years of forming. Activities associated with business retention include:

· Educate businesses about potential expansion sites and the financial assistance available

· Provide efficient, reliable public services such as snow removal, road repairs, and utilities

· Provide contact group or individual to address business questions from community

Commercial/Industrial Development

Commercial and industrial development allows communities to identify market needs and find businesses to fulfill those needs. Creating or modifying Tax Increment Finance (TIF) districts may assist with this process. TIF districts are created because of rehabilitation, environmental remediation, industrial, or revitalization/blight elimination. They encourage economic development that may not take place without offering this public and improved land for purchase. In addition to TIF districts, new structures can be built and existing ones redeveloped.

D. Economic Development: Five General Components

(According to the Wisconsin Economic Development Institute, Inc.)

1. Organizational Development

In order for a community to plan ahead, an active organization needs to be established to analyze past and current economic conditions. This group guides economic development and has a firm understanding of city goals and objectives, using strategies to follow through with activities. Park Falls has the Park Falls Area Community Development Corporation (PFACDC). Their efforts assist new businesses and encourage growth in the area.

2. Infrastructure Development

For goods and services to be produced and delivered, various support systems are needed: utilities, transportation services, schools, hospitals and communication. Business and industrial parks are also included in this section as they are essential investment sites for communities.

3. Business Development

There are three primary strategies for a community’s business development.

Retention and expansion of existing businesses

Entrepreneurial development

Business attraction

It is then the community organization’s job to identify and target specific areas of need. Focus may turn to attracting certain businesses or perhaps more attention is needed on the downtown area. Whatever is decided upon, support from revolving loan funds, angel networks and venture capital opportunities are available.

4. Workforce Development

Workforce development improves current businesses to keep standard of living high and competitive. The attention is directed toward maintaining workforce skills, keeping young people in the community and allowing all people to be contributors. Schools, employers, unions and governmental bodies must partner together for this to be held strong.

5. Community Cash Flow Development

The amount of money brought into an area comes from 1.) individuals and 2.) businesses, organizations and the government. Successful economic strategies bring in dollars from both sources, a result of public-private partnerships. Individual money may be from wage and salary income, non-wage salary income, or generated wealth while new money sprouts from tourism, growing businesses, government grants and investments.

2.2 Inventory and Trends

A. Price County

The following section reviews the ten major economic sectors and the relative strength of each sector.

1. Economic Sectors

The economy is composed of twelve basic economic sectors, also known as SuperSectors. They are: agriculture, forestry, fishing, hunting and mining; construction; manufacturing; wholesale trade; retail trade; transportation, warehousing and utilities; information; finance, insurance, real estate and rental leasing; professional, scientific management, administrative and waste management services; educational, health and social services; educational, health and social services; arts, entertainment, recreation, accommodation and food services; public administration.

In 1998 a survey illustrated perceived market niches in the following areas:

-lumber and wood products -trucking

-metal fabrication and machining -hydraulic cylinder and wire harnesses

-logging equipment rental and repair -day care

-motor repair -residential/industrial cleaning services

-office supplies -quality retail stores/specialty stores

-computer education -high point grinding electronic motors

-truck repair -plastic technology spin-offs

-high and ethnic restaurant -natural foods store

-equipment rental -new/used auto sales

This survey is relevant today because, according to Figure 13, the industries involved with each of these niches compose a greater percent of industry sources in Price County.

The four highest percentages are associated with education, health and social services, manufacturing, and retail trade. These correspond to niches such as computer education, metal fabrication and machining, and quality retail stores/specialty stores. See Figure 13 for employed civilian population as a percentage of people in 2000.

Figure 14 demonstrates industries of Price County in 1990 and 2000 and how these have changed over a decade.

Figure 13: Employed Civilian Population as a Percentage of People 16 Years and Above
	Wisconsin	Price County	City of Park Falls
Occupation
Management, professional, and related	31.30%	25.90%	31.00%
Service	14.00%	15.30%	20.20%
Sales and Office	25.20%	18.50%	20.60%
Farming, fishing, and forestry	0.90%	3.30%	1.90%
Construction, extraction, and maintenance	8.70%	9.90%	8.10%
Production, transportation, and material moving	19.80%	27.20%	18.20%
Industry
Agriculture, forestry, fishing, hunting, and mining	2.80%	6.70%	3.80%
Construction	5.90%	4.60%	3.30%
Manufacturing	22.20%	32.00%	24.30%
Wholesale trade	3.20%	1.50%	2.40%
Retail trade	11.60%	9.60%	11.40%
Transportation, warehousing, and utilities	4.50%	4.10%	3.30%
Information	2.20%	1.60%	1.50%
Finance, insurance, real estate, rental leasing	6.10%	3.10%	2.20%
Professional, scientific management, administrative and waste management service	6.60%	3.70%	5.20%
Educational, health and social services	20.00%	19.70%	27.50%
Arts, entertainment, recreation, accommodation and food services	7.30%	6.20%	8.60%
Public administration	3.50%	3.40%	3.70%
Other services (except public administration)	4.10%	3.70%	2.70%
Source: 2000 U.S. Census Bureau

Figure 14: Employed Civilian Population 16 Years and Above by Industry
	1990	2000	Net Change	Percent Change
Total People in Price County	6,725	7,436
Industry
Agriculture, forestry, fishing, hunting, and mining	527	501	-26	-4.9%
Construction	271	344	+73	26.9%
Manufacturing	2,615	2,382	-233	8.9%
Wholesale trade	134	111	-23	-17.2%
Retail trade	671	715	+44	6.6%
Transportation, warehousing, and utilities	279	303	+24	8.6%
Information	N/A	122	N/A	N/A
Finance, insurance, real estate, and rental leasing	228	230	+2	0.9%
Professional, scientific management, administrative	305	274	-31	-10.2%
and waste management services
Educational, health and social services	917	1,462	+545	59.4%
Arts, entertainment, recreation, accommodation	295	460	+165	55.9%
and food services
Public administration	198	276	+78	39.4%
Other services (except public administration)	285	256	-29	-10.2%
Source: 2000 U.S. Census Bureau

In 2000 about 7,436 people were employed in Price County while 6,582 were in 2004. In 2000 the largest sector was manufacturing (2,382 jobs) followed by educational, health and social services (1,462). These sectors ranked the same in 2004 with trade, transportation and utilities followed by health and social services. The average annual wage for all industries, $27,690, is the second highest in the northwest region. There was a 3.2 percent increase and it ranks in the 79.7 percentile for Wisconsin industries.

Agriculture, forestry, fishing, hunting and mining:

Between 1990 and 2000, this sector decreased by 4.9 percent. Mining in the state increased 37 percent while the nation decreased 24 percent. In 2004 there was a 10.8 percent growth with an average annual wage of $23,210 for the county. There were 108 people employed in natural resources and a total payroll of $2,506,657.

Construction:

Price County has the third highest share of manufacturing jobs among all 72 counties in Wisconsin.

Between 1990 and 2000, this sector grew by 26.9 percent but could not maintain the national increase 28 percent. In 2004 there was a 1.7 percent decrease but the average annual wage still ranked among the top of the sectors at $33,889. There were 207 people employed in construction.

Manufacturing:

Growing by 8.9 percent from 1990 to 2000, manufacturing still remains the largest employer in Park Falls and Price County. This percentage is lower than the state growth rate of 12 percent but greater than the national rate of decreasing by 4 percent. In 2004 for Price County, manufacturing jobs increased 1.6 percent, had the highest average annual wages in the county and Price County had the third highest share of manufacturing jobs among all 72 in the state. There were 39 jobs added. The total payroll for this sector was $88,260,966.00 with an average annual wage of $36,158. The annual average number of people employed was 2,441.

Trade and transportation, warehousing and utilities:

Wholesale trade decreased 17.2 percent over the ten years which is well below the state and national growth rates of 19 and 13 percent. Between 1990 and 2000, retail trade grew 6.6 percent, still over 12 percentages below state and national rates. Transportation, warehousing and utilities grew 8.6% and the state and national rates increased 22 and 13 percent. In 2004 Price County added 36 jobs in these sectors, which combined with manufacturing to form the largest increase of jobs. The average annual wage was $22,125. The number of people employed was 1,066.

Information:

This was not a separate sector in 1990 so the growth was not shown. In 2004, there was a 3.1 percent increase with an average annual wage of $18,702 for Price County compared to Wisconsin’s average of $41,759. This makes up 44.8 percent of Wisconsin’s industry wages. There were approximately 66 people employed in this sector.

Finance, insurance, real estate and rental leasing:

Between 1990 and 2000, there was a 0.9 percent increase in this sector while Wisconsin grew 22 percent and the nation grew 13 percent. In 2004 jobs were lost, and this sector partnered with public administration to form a 1.9 percent loss compared to Wisconsin’s increase of 0.9 percent in the two sectors. Price County’s average annual wage was $21,063 while Wisconsin’s average was over double this figure. There were 210 people employed in this sector.

Professional, scientific management and administrative and waste management services:

Between 1990 and 2000, this sector decreased by 10.2 percent. In 2004, data shows a 2.5 percent growth, with an average annual wage of $35,433, and rank in the 89.5^th percentile for Wisconsin. The annual average employment was 255 people.

Educational, health and social services:

Between 1990 and 2000, this sector increased the most at 59.4 percent. In 2004 the second greatest number of jobs were provided and with the second highest total payroll. Annual average wages are low, ranking fifth in Price County and only being in the 65^th percentile of the industry’s wages in the state. There was a slight growth of 3.3 percent and average annual wage of $23,601. Approximately 1,280 people were employed.

Arts, entertainment, recreation, accommodation and food services:

This sector increased by 55.9 percent from 1990 to 2000. In 2004 this sector was called “leisure and hospitality” and saw a 1.8 percent growth and had an average annual wage of $7,594 for Price County. The average was 396 people employed.

Public administration:

This sector increased by 39.4 percent between 1990 and 2000; however, in 2004 jobs were lost. The sector still managed to grow 8.0 percent in the year and have an average annual wage of $28,456. Refer to the “Finance, insurance, real estate and rental leasing” sector. The annual average employment was 394 people.

Other services (except public administration):

From 1990 to 2000, other services decreased 10.2 percent. In 2004 there was a 4.9 percent decrease and an average annual wage of $11,191. The annual average employment for the year was 158 people.

2. Location Quotient Analysis

The location quotient calculation is the most common method of economic analysis in which the local economy is compared to state and national economy references. An analysis gives a calculated ratio called a “location quotient.” This result is used to determine the extent of exporting and importing to an area based on local supply and demand.

There are three different outcomes after obtaining the location quotient (LQ).

LQ < 1.0 The local employment is less than expected for an industry and is determined to be an importing sector, local money going to other area economies with no goods or services exported.

LQ = 1.0 The local employment is exactly sufficient to meet the local demand.

LQ > 1.0 The local employment is greater than expected and considered an exporting sector, bringing money into the county from outside sources.

Figure 15: 2006 Location Quotients

Economic Sector	Wisconsin LQ	Price County LQ
Natural Resources and Mining	0.59	1.18
Construction	0.79	0.44
Manufacturing	1.69	3.55
Trade, Transportation and Utilities	0.98	0.73
Information	0.77	0.42
Financial Activities	0.91	0.50
Professional and Business Services	0.73	0.29
Education and Health Services	1.00	0.97
Leisure and Hospitality	0.94	0.62
Other Services	0.92	0.70

Source: Bureau of Labor Statistics

Although these figures are not for Park Falls specifically, the economic sectors for Price County and Park Falls are similar. From the table it is seen that Price County is a major exporter of manufacturing goods. The majority of sectors show the need to import to the area with a location quotient below 1.00. This shows the dependence Price County, including Park Falls, has on other businesses for services, goods and industry. The figures have not changed much since 2001 according to the Bureau of Labor Statistics (BLS). It is necessary for Wisconsin to import materials, but overall the supply is fairly close to the demand of the state overall.

3. Labor Force

According to figures compiled by the Department of Industry, Labor and Human Relations (DILHR), the Price County labor force has been growing over recent years, even though the population has declined slightly. This appears to be a result of more women entering the workforce, as well as an overall increase in the number of jobs available.

In 1990, the total civilian labor force in Price County numbered 7,600 compared to 6,300 in 1980. The number of employed persons rose from 5,800 in 1980 to 7,200 in 1990, while the number of unemployed dropped from an average of 530 in 1980 to an average of 400 in 1990. In 1996, the county’s unemployment rate was 6.2%.

In 1998, the figures for DILHR showed a further increase in the labor force to 8,102, and an increase in the average number of unemployed persons to 469 caused the average number of employed to rise to 7,392.

The labor force is projected by DILHR to continue to increase in northwest Wisconsin over the next 10 years, but at a slower rate. The two age groups which account for most of the future increases in the labor force, the 5-14 and 15-24 year-old groups, have decreased in size over the last 10 years and are projected to continue to do so.

Information from the 1990 U.S. Census indicates that the number of women in the labor force rose over the last 10 years, both in terms of absolute numbers and relative percentages. The number of women with children who were in the workforce increased dramatically over the same period. In 1980, women made up 38 percent of the total labor force. By 1990, this number had increased to 43 percent. Only 36 percent of women with their children fewer than six years of age were in the labor force in 1980, while 58 percent of women with own children between six and 17 years of age were in the labor force. The 1990 Census showed these figures increasing to 65.2 percent and 80 percent, respectively.

According to Figure 16 unemployment decreased 2.0% from 1990 to 2000 and stooped below the national average of 4.1% in 2000. Wisconsin’s 2006 survey showed unemployment at approximately 3.8%, 0.2% higher than Price County’s 2000 figures. See Figure 16.

Figure 16: Labor Force Indicators, Price County

Indicator	1990	2000	% Change
Civilian Labor Force	59.8%	62.7%	+2.9%
Employed	56.5%	62.7%	+6.2%
Unemployed	5.6%	3.6%	- 2.0%

Source: U.S. Census

4. Educational Levels

Education is imperative to continuing economic success and development in a community. Park Falls sets a strong foundation with its primary and secondary schooling; however, most students depart from the area after graduation, leaving local businesses and industries in need of quality, skilled workers. Refer to “Adequate Employee Training” in the Issues section on page 32 of Economic Development. There are not any major post-secondary education facilities in Price County, but there is Northcentral Technical College in Phillips offering numerous classes. This technical school does partner with local businesses and government to develop the economy through education. Numerous transferable courses and career-oriented programs are offered. The nearest career development center is in Medford in Taylor County.

As identified in the Issues and Opportunities section, 84.3% of people 25 and older are high school graduates. This is about four percentages higher than the national average of 80.4%. About 13% hold a bachelor’s degree compared to 24.4% for the nation. On a county-wide basis over 73 percent of county residents 25 years old or older were high school graduates or higher as of 1990, while in the City the percentage of high school graduates was 75.

5. Income Levels

The median household income for Price County is $35,249, about $1,400 more than Park Falls’ average. The median family income is $42,930 and per capita income is $17,837. Both figures are almost identical to those of Park Falls. Full-time, year-round female workers earn less than males with differences of $10,896 in Park Falls, $10,476 in Price County and $11,197 in Wisconsin. The individual percent below poverty level for Price County is 8.9%, just 0.2% higher than the state, while Park Falls is at 10.3%. With northern Wisconsin becoming increasingly popular as a place to retire, the mean retirement income is $12,879 in Price County, $13,361 in Park Falls and $15,759 for Wisconsin.

In 2003 Price County ranked 45^th out of the 72 counties for the per capital personal income. The five-year growth percentage for per capita personal income was 12.2 percent and this puts the county in 68 out of 72 for growth. Refer to the Issues and Opportunities section on page 18 for more information regarding income.

B. City of Park Falls

1. Economic Profile

Labor Force:

Park Falls represents just over 16% of Price County’s labor force. In 2000 there were 1,269 people 16 years and older working, which represents a participation rate of 57.7%. The national average was slightly higher at 63.9%. Employment increased from 1990 to 2000 for Park Falls but did so slower than the county. Unemployment decreased significantly, and more so than in Price County, over the ten years.

Figure 17: Labor Force Indicators, City of Park Falls, 1990-2000

Indicator	1990	2000	% Change 1990-2000
Civilian Labor Force	56.3%	57.7%	+1.4%
Employed	53.2%	54.8%	+1.6%
Unemployed	5.5%	3.0%	- 2.5%

Source: U.S. Census, Civilian numbers only

Figure 18

Not in Labor Force 42.3%

Unemployed 3.0%

Employed 54.8%

Source: U.S. Census

Figure 19: Employment Status by Percentage of Population 16 Years and Above

	Wisconsin	Price County	City of Park Falls
In Labor Force	69.10%	62.70%	57.70%
Civilian Labor Force	69.00%	62.70%	57.70%
Employed	65.80%	59.10%	54.80%
Unemployed	3.20%	3.60%	3.00%
Armed Forces	0.10%	0.00%	0.00%
Not in Labor Force	30.90%	37.30%	42.30%

Source: 2000 U.S. Census Bureau

Occupations:

Occupations are concentrated among four branches: management/professional, sales/office, service, and production/transportation. The greatest number of people work in a management/profession position followed by sales/office, service, and production/transportation, respectively. This is similar to the county’s data except that production/transportation represents the largest occupation field for Price County.

Figure 20: Residents by Occupation, 2000

Occupation	City of Park Falls (number)	City of Park Falls (percent)
Management/Professional	373	31.0%
Service	243	20.2%
Farming/Forestry	23	1.9%
Sales/Office	248	20.6%
Construction	98	8.1%
Production/Transportation	219	18.2%

Source: U.S. Census

Incomes:

In 1999 the median household income was $33,860 and the per capita income was $17,929. Both incomes rose since the 1990 census, but both are well below the statewide averages. Refer to the Issues and Opportunities chapter on page 21 to further compare the city, county and statewide per capita, median household, and family incomes.

Figure 21: Median Household Income

	1990	2000	Change
City of Park Falls	$22,455	$33,860	$11,405
Price County	$22,662	$35,249	$12,587
Wisconsin	$22,858	$43,791	$20,933

Source: U.S. Census

Figure 22: Per Capita Income

	1990	2000	Change
City of Park Falls	$10,887	$17,929	$7,042
Price County	$10,564	$17,837	$7,273
Wisconsin	$7,009	$21,271	$14,262

Source: U.S. Census

2. Major Employers

The Park Falls Area has several major employers representing numerous economic sectors, demonstrating manufacturing as the greatest sector. Refer to page 16, the Issues and Opportunities section, for a more extension list of employers in Park Falls.

Top Ten Private Employers in Park Falls

Rank	Employer Name	Product
1	Weather Shield	Windows and Doors
2	Flambeau River Papers, LLC	High-grade Paper
3	Flambeau Hospital, Inc.	Health Care
4	Park Manor	Nursing Care
5	St. Croix Rod Company	Fishing Rods
6	Gustafson’s Inc.	Grocery
7	Park Falls Hardwoods	Wood Products
8	Saunders Wood Specialties, Inc.	Wood Products
9	Pamida	Retail
10	Super One Foods	Grocery

Source: Department of Workforce Development

3. Employment Areas and Existing Facilities

There are three major areas of employment in Park Falls. These are the north industrial park, the east side of Flambeau River near downtown, and the downtown business district.

The City has a variety of infrastructure resources for business development, including:

v Two fully serviced industrial parks (north and west) that are almost at capacity

v Three tax increment financing (TIF) districts

v Transportation access to State Highways 13, 182 and 70, US Highways 90 and 94, and numerous county highways

v A public-use airport, Park Falls Municipal Airport, with a 3200 foot by 60 foot paved runway

v Both natural gas and electric utilities provided by Xcel Energy

v Rail service from the Wisconsin Central Railroad passing through the Park Falls Industrial Park

v Local telephone and high speed internet access are provided by CenturyTel and Price County Telephone Company (PCTC)

v Cable TV and high speed internet access are provided by Charter Communications

v Water, sanitary sewer and local roads throughout the City

Public Facilities

The City of Park Falls provides municipal water and sewer service to most city residents, businesses and industries. Fire protection is provided by a volunteer force, and police protection is provided by a force of full time officers. City owned buildings include the Parks Falls City Hall, the Park Falls Public Library and a number of shops and garages. There are four parks in the city including Hines Memorial Park, Tourist Park, Triangle Park and South Side Park. The city also maintains athletic fields, volleyball courts, tennis courts and an outdoor swimming

pool. The municipal airport is located on city-owned property outside the city.

Public facilities include public buildings, such as libraries and public office buildings; utilities, such as sewer and water; streets and roads; and other miscellaneous facilities such as parks, airports, signs, etc. Public services, such as police and fire protection, are also included under this heading.

Park Falls City Hall is located along Highway 13 in the heart of the community.

The city hall complex includes city offices, community meeting rooms, the fire hall

and offices for the Chamber of Commerce and the Northwest Concentrated

Employment Program.

The city maintains 22 miles of streets. Two state highways, 13 and 182, are located

within the city limits. The Wisconsin Department of Transportation has designated

Highway 13 as a 2-lane connector route in the Corridors 2020 program which is a

Wisconsin Department of Transportation (WDOT) strategy to develop a network of

integrated, high-quality highways across the state. This program will be expanded

upon in the “Transportation” element.

Regular refuse collection and disposal as well as curbside pickup of recyclable

materials are provided by the city through use of contracted services.

Other facilities for public use include the public school complexes, the Park Falls

country club, a golf course open to the public and the Marshfield Clinic-Park Falls

Center, a modern hospital and dental clinic. With these resources, the city can

maintain and expand is economic base.

2.3 Economic Development Programs and Organizations

To assist Park Falls in economic development are numerous federal, state, county and regional programs. These programs—each with its own criteria—provide funds to new, existing or expanding business applicants. Some are revolving loan funds while others are grants. The goal is to encourage investment in the Park Falls area as a place to live and work while stimulating the area’s economic activity. The Park Falls Area Community Development Corporation (PFACDC) has a complete list of resources available for financial assistance.

The following sources of assistance and funding are provided by the city as incentives:

• City of Park Falls Industrial Park Land Incentive
• Revolving Loan Fund Assistance
• City of Park Falls cooperation in Community Development Block Grant Funding (CDBG)
• Wisconsin Development Zone and Agriculture Zone Tax Incentives
• Tax Incremental Financing (TIF) Incentive
• Local Banking Assistance for Economic Development Projects
• PFACDC Assistance in evaluation of development project and assistance with appropriate sources of funding.

This section contains a list of major programs, agencies and organizations available as resources by the city.

FEDERAL

Economic Development Administration (EDA)

There are numerous programs available through EDA: Economic Adjustment Assistance, Local Technical Assistance, Public Works and Economic Development, and Trade Adjustment Assistance for Firms. Each program targets and responds to varying needs. For example, the Economic Adjustment Assistance Program focuses on assisting areas experiencing adverse economic changes—sudden or long term. On the other hand, Local Technical Assistance targets long-range economic development in regions with severe unemployment and low per capita income, and the Trade Adjustment Assistance for Firms Program helps manufacturing and producing industries that have lost sales and employment due to imported competitive goods. All programs finance through project grants.

USDA Wisconsin Rural Development

Business and Industry Guarantee Loans are directed towards improving, developing, or financing business, industry, and employment in rural communities. The loans are eligible to individuals, partnerships, cooperatives, corporations, Indian tribes or the public body and must be used to improve the economy and environmental climate of the rural area.

Rural Business Enterprise Grants (RBEG) award grants for rural projects that promote businesses, fund distance learning networks, and fund employment related to adult education programs.

STATE

Wisconsin Department of Commerce

An Agricultural Development Zone (ADZ) program attracts, promotes, retains and encourages the expansion of agricultural businesses in Wisconsin. The Department of Commerce uses these funds to continue Wisconsin’s legacy as a phenomenal dairy producing state, providing further interest and support for agricultural business opportunities.

There is also a fund available to assist communities with the cleaning of environmental contamination sites from abandoned or inactive industrial and commercial facilities. A redevelopment plan must be constructed prior to receiving a grant; however, this new plan must use the property for commercial or industrial development and be for the betterment of the municipality.

The Business Employees’ Skills Training (BEST) program was established to provide financial support to Wisconsin small businesses facing labor shortages. This money allows full-time employees to take industry-related classes and have the tuition costs paid for. As a result, employees benefit from a higher education, businesses receive an increased number of qualified workers, and communities are given the opportunity to expand.

Wisconsin Department of Transportation 

The Transportation Economic Assistance (TEA) program provides 50% state grants to businesses and industry to remain and expand in the state or attract new business. Recipients include governing bodies, private businesses, and consortiums for road, rail, harbor and airport projects.

REGIONAL AND LOCAL

Northwest Regional Planning Commission (NWRPC)

The Northwest Regional Economic Revolving Loan Fund is available for a business located in one of the ten northwest counties: Ashland, Bayfield, Burnett, Douglas, Iron, Price, Rusk, Sawyer, Taylor, or Washburn. It is a direct loan program with below market rates. Refer to Issues and Opportunities element on pages eight and nine for more information regarding the NWRPC.

Northwest Wisconsin Business Development Corporation (NWBDC)

The NWBDC’s purpose is to create jobs by addressing capital gaps, promoting private sector investment and assist new/expanding businesses. There are revolving loan funds and direct loan programs. A direct loan is available to a northwest county business that does not serve for tourism and must create a job position for every $15,000 loaned. The revolving loan fund is focused on technology-driven businesses, manufacturing, timber, secondary wood products and tourism with up to $250,000 loaned.

Impact Seven

This is the Greater Wisconsin Fund available for companies in Wisconsin communities and can be designed to fit specific business needs. Terms are negotiable and funds can be used for land and building purchase or improvement, working capital, inventory, supplies, machinery and/or equipment.

Park Falls Area Community Development Corporation (PFACDC) Revolving Loan Fund

This revolving loan fund provides gap financing to investors in the Park Falls area. The goal is to assist in retention and expansion of existing business and industry and attract desirable new ones. The promotion of Park Falls as a safe, healthy work environment with numerous opportunities is important and why the funds are limited to the city only.

Xcel Energy

By offering an economic development loan program, Xcel energy hopes to stimulate private investments and encourage economic diversification in northern Wisconsin. The request must be between $5,000 and $50,000 and be paid back within five years. The loan program cannot exceed 50% of the eligible project cost financed by debt although the fixed interest rate is determined by Xcel.

2.4 APPENDICES

Five topics are briefly summarized below and expanded upon in their subsequent sections.

A. Capital Improvement Plan

The city of Park Falls maintains a current six year capital improvements plan and budget. Throughout the planning year, staff receives input from a variety of sources in the community, such as community groups, citizens at large, standing/working committees and the council members themselves.

The attached Capital Plan serves as a strategic planning document for the City of Park Falls. This document is a long-term plan, a vision for future development of Park Falls, which illustrates opportunities that face the community and identifies the needs if it wishes to be competitive in this 21^st century. See Appendix A on page 51.

B. Site and Building Inventory

This is a list of all available sites for commercial and industrial development in Park Falls. The list includes the Realty Company, number, type of property, address/location, size, price, and vacancy. See Appendix B on page 53.

A. Industrial Park Information

This section contains information about the two industrial parks in Park Falls and any vacant property in them. There are four site maps displaying industrially developed areas and approximate acreage. See Appendix C on page 55.

D. Trade Area Information

This section provides a detailed overview of trade area surrounding Park Falls. See Appendix D on page 57.

E. Community Preparedness Index

This survey was taken in 1999 and re-evaluated in 2008 by Park Falls Community Development Corporation. It identifies a list of topics the city should address if they have not done so already to improve upon the economy and comply with standards. See Appendix E on page 64.

F. Roster of Businesses and Organizations

See Appendix F on page 70.

APPENDIX A

City of Park Falls

CAPITAL IMPROVEMENTS PLAN

The city annually reviews, develops and adopts a Capital Improvements Plan.

This Plan incorporates all public facilities, relating hardware and equipment such as streets and roads, building and grounds, water supply and distribution, parks and recreation, sewage treatment and collection, airport, vehicles and equipment, and other related amenities. The State Department of Transportation’s six year plan will be integrated where it affects city projects.

INSERT UPDATED CAPITAL IMPROVEMENTS PLAN HERE

APPENDIX B

City of Park Falls

MUNICIPAL SITE AND BUILDING INVENTORY

Municipally-owned	Year Constructed/		Known Building	Known Problems
Building	Remodeled	Size	Code Violations	with Handicapped Accessiblity
City D.P.W. Garage	1996	80’ X 265’	None	None
City Library	1938/1997	79’ X 97’	None	None
City Hall Complex	1958	80’ X 130’	None	None
Police/Fire Station	1978	100’ X 100’	None	None
Swimming Pool	1968	38’ X 81’	None	None
Fire/Rescue Station 2	1980/1998	50’ X 105’	None	None

Last Updated: June 2008

			BUILDING INVENTORY—Park Falls
REALTY COMPANY	NO.	TYPE OF PROPERTY	ADDRESS/LOCATION	SIZE	PRICE	VACANT
Birchland	90	Commercial	South Hwy 13	1.00 Ac	$94,900	Yes
Century 21	676B	Commercial	214 North 4th Avenue, along Hwy 13	50'x85'+50'x75'	299,000	No
Century 21	621F	2 Story Building	124 South 4th Avenue, along Hwy 13	50' x 120'	$35,900	Yes
Century 21	622D	Cabins and Resort	North Fork of Flambeau River	17.99 acre	$529,000	No
Century 21	617E	Café & Apartment	229 Division Street	30' x 50'	$83,000	Yes
Century 21	630B	Flambeau Cab	Local business opportunity	N/A	$79,900	N/A
Coldwell Banker	71380	Commercial Lot	North Hwy 13 and east of Smith Creek	4.0 acre	$24,900	Yes