2017 Economic Outlook for MNLB Hometowns: “Stable and Growing”

Most observers believe that 2016 was a good year economically for the Minnesota Lakes Bank home communities of Delano, Mound and Buffalo, and the bank’s senior lenders agree with that analysis.

“We’re forecasting strong loan growth for 2017,” said Tom Screeden, senior vice president and chief credit officer.  “2016 was a good year, and we expect next year to be on that same pace.”

Tom is immediate past president of the Delano Area Chamber of Commerce, and his involvement in a range of community activities enables him to keep an ear to the ground.

“Delano has just put the finishing touches on a new industrial park, and the Delano city administrator is cautiously optimistic about two active leads the City is working with to be the first tenants in that space.  Securing that first tenant will help attract more activity, so we’re hopeful.

“The existing industrial park is home to Industrial Louvers, a hometown company that wants to do a 40,000 square-foot addition for $7.5 million,” Tom continued.  “We have other commercial operations in town that also expect to grow next year, too.”

The Delano-Loretto School District is in the midst of a $65 million project that will include a new middle school.  The construction work has spin-off impacts for the community and much of Wright County.

Fifteen miles north, the community of Buffalo is the county seat and home to MNLB’s loan production office.  Tom notes that the Highway 55 and 25 interchange construction is finally complete, and people are expecting development to pick up now that traffic flows more smoothly. Buffalo’s downtown business district is suffering a bit, but commercial growth is picking up along the highway corridor, a phenomenon that afflicts many communities.

Curt Nelson is the Mound branch manager and vice president-lending.  He, too, expects a good year in 2017.

“Everything in this area is stable, and the outlook for new home construction is really good,” Curt reports.  “Even as we’re settling into winter, I know there is continued interest in new home construction already being planned for next spring.”

Mound is largely a bedroom community, positioned as it is along the northwest shores of Lake Minnetonka.  Curt recently attended a meeting where the mayors of five neighboring communities—Mound, Minnetrista, Spring Park, Orono and Navarre—all provided insight into the economic health of their respective towns.

“To a person, each mayor reported that they expected to see their communities grow in terms of population, new home construction and economic health generally,” said Curt.  “That is a good sign for a community bank like us.”

Since Mound doesn’t have an extensive commercial base, one of the biggest drivers of economic activity is residential development.

“Homes near Lake Minnetonka priced in the low $200,000’s get snapped up in a hurry,” said Curt.  “We know Mound is a bedroom community: people live here and work in the city somewhere.  But we still see pockets of commercial development, and I expect that to continue next year.”