Dave Callister, City Manager, City of Plymouth
In an interview with Invest:, Dave Callister, Plymouth city manager, discussed strategic redevelopment and transit expansion plans to bolster financial independence and the growth of small businesses. He also shared how the city leverages global connections to ensure sustainable growth locally.
Plymouth has frequently been ranked among the Top 10 best places to live in the Midwest. What characteristics make it appealing to residents?
First and foremost, it is the quality of life. At one time, we were ranked No. 1 on Money Magazine’s list. Recently, Consumer Affairs ranked us no. 7 in the Midwest, and we were the only Minnesota city in the Top 25. Anytime you receive external validation of what you already know, it is a good thing. Plymouth offers a unique combination of advantages, including location, transportation, jobs, school districts, parks, and open spaces. Major transportation routes such as I-494, I-94, and Highway 55 make it a key location within the metropolitan area and the state of Minnesota. Additionally, our property taxes are reasonable. Companies and individuals alike consider these factors, contributing to Plymouth’s high rankings. Many companies choose Plymouth as their base, and many individuals move here for corporate jobs, making it a great place to live and raise a family.
Do you feel the city is striking a good balance between adaptive reuse and new development while preserving its history?
I believe we are. Plymouth is not an old community as we were incorporated in the 1950s, with major growth occurring in the 1970s through 2000s. Many of our buildings are only 40 to 50 years old, unlike those in Minneapolis and St. Paul, which date back to the late 1800s or early 1900s. Nonetheless, we have a historic preservation staff member who helps the community celebrate our history. One example is our Old Town Hall – the building is over 100 years old, yet it has been preserved as a museum and was recently updated to welcome residents for events and historical learning opportunities. Given our relatively young history, there is not much historic architecture to preserve, as the area was primarily farmland before development.
How is the business community performing, and how does the city support small businesses?
Plymouth is the seventh-largest city in Minnesota, with a population of approximately 81,000. However, we have the fourth-largest local economy, measured by gross business sales reported to the Minnesota Department of Revenue. Our strong economy is reflected in our AAA credit ratings from both Standard & Poor’s and Moody’s. While we support all businesses, we have a particular focus on small businesses in Plymouth City Center. This area, which includes city hall, Life Time Fitness, the Plymouth Ice Center, the Plymouth Community Center, and the Hilde Performance Center, is undergoing redevelopment to become more pedestrian- and bike-friendly. We are also allowing housing in City Center, which was previously restricted, to create a denser community that can support more restaurants and entertainment venues. Additionally, we launched Hello! Plymouth, a destination marketing organization promoting hotels, restaurants, and entertainment venues to attract visitors and boost local businesses.
What are some of the challenges the city is facing and how are you working to address them to make the city even more attractive?
One challenge is land availability. While I would say that the land prices are healthy here, the remaining undeveloped sites are small, irregularly shaped, or otherwise difficult to develop. Another challenge is density. The state legislature is pushing for higher-density development to optimize infrastructure, but increased density can strain utilities such as water and sewer systems. We must find the right balance between increasing density and maintaining quality infrastructure. Affordable and senior housing are also priorities. With over 55,000 jobs in Plymouth, we need housing options that support our workforce. If housing is not available, we must ensure effective transportation options. Highway 55, a major route into downtown Minneapolis, has bus service, but we are working toward implementing an all-day bus line in the next few years, with long-term plans for bus rapid transit. We are working on the city’s comprehensive plan for 2050, which will address land use, transportation, parks, and future growth.
Lastly, one unique challenge for Plymouth is land prices. While high land values contribute to a strong tax base and help distribute the tax burden across residential and commercial properties, they also make redevelopment more expensive. However, with over $18 billion in taxable market value, Plymouth remains a highly desirable location, and we continue to work toward balancing these factors for sustainable growth.
How do you anticipate the broader changes in the U.S. economy, especially with the new administration, to impact local governments and the city of Plymouth?
Our tax base is not heavily reliant on retail. Instead, we have a strong medtech sector, with well over 100 supporting businesses in our community, along with biotech, manufacturing, research, and development. These industries provide stability during economic downturns, as they are less volatile than retail. Medtech and biotech products remain in demand, which helps us weather economic struggles. Regarding inflation, we are in a better position than many cities. After the economic downturn of 2009-2011, our recovery was much quicker than most. One major project underway is Station 73 on County Road 73 and Highway 55. This is a $28 million initiative, supported by a $15 million federal RAISE grant along with state, local, and county funding. The project will improve road infrastructure, revitalize the area, and include an underpass for transit purposes. We are in the land acquisition phase.
While we are not overly concerned, we continue monitoring how federal funding plays out. In the future, we expect fewer federal resources to be available, but we are used to operating independently, so we do not anticipate a major impact. However, inflation and interest rates remain a concern, as they affect many aspects of the economy.
What are your key priorities for the city and region over the next three years?
One of our major goals is improving transit options along the Highway 55 corridor. If you examine a map of the metropolitan area, you will see transit spokes extending from downtown Minneapolis and St. Paul, but there is little connectivity to the northwest. Expanding transit is critical for jobs and economic growth. We also anticipate more infill development, where larger lots will be subdivided for multiple homes. This trend is expected to continue.
Another key focus is the City Center redevelopment, which is a multiyear plan, as well as redevelopment of other underutilized or outdated spaces. We are already seeing significant interest in new projects, including some office developments, which is unusual in today’s market. One of our major redevelopment initiatives is at the intersection of I-494 and Highway 55. We have a purchase agreement to acquire and demolish an underperforming hotel, the Red Roof Inn, which has become a blighted property. Another adjacent hotel is also for sale. This entire area, which has high visibility and transit access, will likely be transformed into a mixed-use development. While initially projected as a two-to-three-year initiative, strong interest suggests it may move forward within one to two years.
How does the city of Plymouth fit into these various redevelopment efforts?
Plymouth operates as an umbrella under the city rather than as a separate nonprofit. This is unusual, but it aligns with our preference for maintaining independence. Plymouth works closely with our Economic Development Department, which is taking the lead in attracting businesses, securing state and federal grants, and fostering connections within the business community. We have significant global business ties, with corporate connections to the Netherlands, Japan, China, and Germany. Some of these are within the medtech sector, while others are in different industries. Maintaining and expanding these global relationships is a regional priority, regardless of whether businesses establish themselves within our city or elsewhere in the metropolitan area. The corporate activity in this part of the metro area is substantial, and we aim to continue leveraging these opportunities.
