Executive Summary
New Richmond is professionalizing its industrial recruitment through a multi-year strategic partnership with SRF Consulting to activate 50 acres of long-held employment land . While the Council maintains high resistance to "spot zoning" industrial uses in residential areas , there is significant political momentum to create a new "Artisan Industry" zoning class to accommodate small-scale manufacturing . Approval friction remains high for projects lacking municipal service connections or those conflicting with future land-use maps .
Development Pipeline
Industrial & Large-Scale Projects
| Project | Applicant | Key Stakeholders | Size | Current Stage | Key Issues |
|---|---|---|---|---|---|
| Business & Technical Park Rezoning | City of New Richmond | City Council | 23 Acres | Approved | Rezoning from Z3 to Z7 (Industrial) to align with Comp Plan . |
| Industrial Discovery & Market Assessment | SRF Consulting Group | Noah (City Admin), Council | 50 Acres | Ongoing | Three-year strategy to identify target industries and improve competitiveness . |
| Antlers by Klouse | Gerald Clawson | Plan Commission | 15,000 SF | Denied | Proposed industrial use in a residential-guided area; rejected as "spot zoning" . |
| Artisan Industry Zoning Study | City Staff | Jerry Clawson | N/A | Research | Creating a "mixed-use" industrial district compatible with residential zones . |
| Liberty Villas | AEM Construction | Wilson Properties Group | 2 Lots | Approved | CUP for multiple principal buildings per lot . |
| ... (Full table in report) |
Entitlement Risk
Approval Patterns
- Projects that strictly adhere to the Future Land Use Map (FLUM) face little resistance, even when involving significant rezoning to industrial .
- The city has streamlined small-scale expansion by allowing administrative permits for building additions between 500-1,000 square feet, bypassing the Plan Commission .
- There is a preference for higher-density residential products (twin homes) to address affordability, as evidenced by the approval of revised plats increasing density .
Denial Patterns
- "Spot zoning" industrial uses into residential-guided areas is a hard line for the current Council, even for low-impact "artisan" businesses .
- Reliance on private well and septic for new developments within city limits is generally rejected if municipal services are required by prior Certified Survey Map (CSM) conditions .
Zoning Risk
- Large swaths of "holding" land (Z1 Agriculture Preservation) are being transitioned to Suburban or Multi-Use districts as development applications arrive .
- The repeal of older Planned Unit Developments (PUDs), such as the Evergreen Valley PUD, indicates a shift toward standardizing zoning across the city to remove restrictive legacy layers .
Political Risk
- There is active tension between staff’s methodical three-year "discovery" timeline for industrial planning and the Council's desire for "full speed ahead" economic development to compete with neighboring Somerset and River Falls .
- The upcoming April 2026 election for the newly restructured voting mayor position may shift the balance of power regarding public safety and day-to-day operations .
Community Risk
- Infrastructure gaps, particularly the lack of sidewalks in older phases of subdivisions, are a recurring point of resident friction during new plat approvals .
- Organized interest in environmental/safety issues is emerging, specifically regarding the maintenance of community water fluoridation, which is moving to a public referendum .
Procedural Risk
- New PUD regulations are being specifically tailored to facilitate affordable housing by allowing smaller lot sizes and increased coverage .
- Developers face significant stormwater and utility mitigation requirements, often involving dozens of conditions (21-35 per project) to protect wellhead areas .
Key Stakeholders
Council Voting Patterns
- The Council is largely unified on land-use approvals (6-0 votes) when staff recommends compliance .
- Political division is most apparent in administrative restructuring, such as the 4-3 split on the form of government .
Key Officials & Positions
- Mayor Zakowski: Often acts as a tie-breaker; recently supported restructuring the Mayor’s office to a voting member while removing direct authority over police/fire .
- Noah (City Administrator): Instrumental in the compromise for the new form of government and leads the industrial development strategy with SRF Consulting .
- Amber (City Planner): Key technical lead on platting and wellhead protection compliance .
Active Developers & Consultants
- JPB Land / Twin Cities Land Development: Dominant players in the residential pipeline .
- SRF Consulting Group: Currently under contract to overhaul the city’s industrial development strategy and ordinance review .
- MSA Professional Services: Frequently serves as the city's lead engineering consultant for major utility and water infrastructure projects .
Analysis & Strategic Insights
- Industrial Momentum vs. Friction: While the city is eager to fill its 50-acre industrial park, it is in a "discovery" phase until late 2026 . Developers of traditional warehouse/logistics projects should expect a methodical planning process but may find favorable conditions if their projects align with the upcoming SRF-guided strategy .
- Emerging "Artisan Industry" Class: A significant opportunity exists for small-scale manufacturers and "flex" industrial users once the city formalizes the Artisan Industry zoning category . This is intended to bridge the gap between heavy industrial and commercial/residential uses .
- Utility Constraints: Expansion in the North/Northeast is heavily dependent on the completion of Water Tower #3, anticipated in late 2027 . Projects seeking high water pressure for fire suppression may face delays until this infrastructure is online .
- Strategic Recommendation: Developers should avoid "spot zoning" requests and instead petition for Comp Plan amendments or wait for the Artisan Industry ordinance if they are not sited within the existing Business & Technical Park . Engagement with the Tourism Committee may also provide a path for projects that offer "best of" community engagement or public-facing retail .