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EDC – Arden Hills <br />April 27, 2017 <br />Page 8 <br /> <br />P:\Admin\Committees & Commissions\Committees & Commissions\Economic Development Commission (EDC)\2017\05 03 17\Higher Ed Study\WSB Memo 04272017.docx <br />divided into three categories: Category 1 generating $200,000 or more of payroll per 1,000 <br />square feet; Category 2 generating between $100,000 and $200,000 of payroll per 1,000 square <br />feet; and Category 3 generating less than $100,000 of payroll per 1,000 square feet. <br /> <br />Category 1 industries are technical and professional industries that normally work in an office <br />building. Category 2 industries do not have the same similarities. Manufacturing has a high <br />median income ($114,941) but has an average of 1,000 square feet per employee, four times the <br />amount of the area for the average office employee. Health Care and Social Assistance and <br />Retail Trade have lower median incomes ($42,723 and $61,048 respectively) but require less <br />area per employee (400 square feet per employee). Administrative and Support is an office <br />based industry, but its median income ($38,730) is much lower than other office based <br />industries. Category 3 industries are either low wage industries (Arts and Entertainment; <br />Education; or Accommodations and Food Services) or better than average wage jobs requiring a <br />larger area per employee (Transportation and Warehousing or Wholesale Trade). <br /> <br />The disposable income figures were calculated by multiplying the salary per 1,000 square foot <br />column by 9.8%, which according to Business Analyst 1 is what the average household spends on <br />food away from home, alcoholic beverages, and entertainment and recreation. The disposable <br />income figure can show potential economic impact on the community, but employees will only <br />spend money in Arden Hills if there are businesses to spend that money in. In other words, <br />Category 1 industries will have their greatest impact on the local economy when there are <br />Category 3 businesses (Arts and Entertainment and Accommodations and Food Services) for <br />those Category 1 employees to spend their disposable income at. <br /> <br /> <br />Economic Impact of the Business and Industrial Zones <br /> <br />The following tables illustrate some opportunities within the Arden Hills zoning code for each of <br />the fourteen (14) industry sectors. As stated above, the industries in Category 1 are the most <br />valuable for a local economy in terms of salary based on building square footage. In general, if a <br />city chooses to attract Category 1 and Category 2 industries, Category 3 industries will generally <br />follow based on market forces. <br /> <br /> <br />1 Business Analyst is a data processing servicer that used ESRI technologies and US Census data.