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• Challenges and Risks <br /> Economic Environment <br /> It can be expected that the region will have slow-to-moderate business growth. <br /> Thus, the plan needs to build on the current industrial base, and business owners <br /> currently located in the Twin Cities that desire a location closer to "Up North" <br /> with all the city amenities. <br /> The regional economy appears to be growing relatively well compared to its <br /> northern competitors. However, there is concern that the region is not achieving <br /> its share of the new high-tech economy. This is evidenced by <br /> • Minnesota's share of the nation's venture capital investment dropping by <br /> 50 percent since 1995 <br /> • local high-tech firms performing poorly, growing at 50 percent of those in <br /> Colorado and Massachusetts and only by 25 percent of their counterparts <br /> in California and Texas and, <br /> • Minnesota currently ranks 28th in public stock offerings and 34th in new <br /> company growth as stated in the Star Tribune article, "Hollow Minnesota, <br /> coming too late to the new economy. " <br /> • Also, in the past the regional economy significantly benefited from the spin-off <br /> companies that evolved from companies like Control Data Corporation and Cray <br /> Research. Minnesota continues to see headquartered companies like Honeywell <br /> and Norwest depart which also impacts the number of new business spin-offs. <br /> Business growth is constrained by the full-employment situation and that there is <br /> no in-migration employment. With these unprecedented unemployment rates, <br /> employers are having difficulty finding and keeping quality workers. <br /> Competition <br /> In the short term, Anoka-Ramsey is the most serious competitor of the Highway <br /> 10 corridor, which includes the cities of Elk River, Big Lake, and Becker. The <br /> competitive I-94 corridor includes the Cities of Rogers, Albertville and <br /> Monticello, of which the most critical competitor is the City of Rogers. Long- <br /> term competition will most likely come from Otsego and possibly Dayton. <br /> It will be necessary to monitor the competition once the City of Elk River <br /> launches its plan. It just may motivate the others to become more competitive in <br /> the area. <br /> • <br /> 19 <br />