Stillwater, Minnesota, often celebrated for its picturesque riverfront and historic charm, is also a dynamic hub of economic activity. The city’s blend of longstanding businesses and new ventures contributes to a robust local economy that continues to evolve.
Historic Downtown: A Business Anchor
Downtown Stillwater remains the heart of the city’s commercial activity. The area boasts a variety of retail shops, restaurants, and collaborative spaces that attract both residents and visitors. This vibrant atmosphere is the result of a concerted partnership between the City of Stillwater, the Chamber of Commerce, and local businesses, all working together to enhance the downtown experience.
Diverse Economic Sectors
Beyond its historic core, Stillwater’s economy is supported by several key industries:
Tourism and Hospitality
The city’s scenic beauty and rich history make it a popular destination, with tourism and hospitality accounting for a significant portion of local business activity. The array of boutique shops, dining establishments, and events along the St. Croix River contribute to a thriving tourism sector.
Healthcare
Healthcare services are a growing component of Stillwater’s economy, offering stable employment opportunities and meeting the needs of the community.
Manufacturing and Technology
Modern manufacturing facilities in Stillwater focus on biomedical advancements and innovative consumer products, reflecting the city’s adaptability and forward-thinking approach.
Community Development Initiatives
In early 2026, Jason Zimmerman joined as the new Community Development Director, bringing a fresh perspective to the city’s growth strategies. Zimmerman is actively working on the Comprehensive Plan, aiming to shape Stillwater’s development efforts for the next two decades. His collaboration with city staff and stakeholders underscores a commitment to thoughtful and sustainable growth.
Support for Local Businesses
The City of Stillwater offers a range of resources to support local businesses, including site selection assistance through partnerships with the Washington County Community Development Agency. Financial assistance programs such as Tax Increment Financing (TIF) and the Minnesota Investment Fund are available to viable projects with unique economic development needs.
Looking Ahead
As Stillwater continues to balance its historic charm with modern economic development, the city’s proactive approach to community planning and support for diverse industries positions it well for sustained growth. The collaborative efforts of local government, businesses, and residents ensure that Stillwater remains a vibrant and prosperous community.