Stillwater may be known for its charming downtown and riverfront views, but there’s a lot going on behind the scenes in local business and economic development. From tools for green businesses to strategies for job growth, resources lining city hall and community partners are making it easier than ever to start, sustain, and scale a business here.
Strategic Planning Anchors Economic Development
Stillwater’s Chamber of Commerce recently rolled out its Economic Development Plan for the 2025–2028 period designed to create sustainable growth by targeting industry sectors smartly, supporting both existing legacy businesses and new entrepreneurs. Key pillars include workforce development, property readiness, financial tools, and story-telling to ensure Stillwater remains competitive in the regional economy. These focus areas help align city planners, business owners, and stakeholders around shared goals.
Meanwhile, the Downtown Framework Plan reinforces Stillwater’s strategy: preserve the city’s historic character, enhance the quality of place, and capitalize on its role as a destination for tourism and small businesses. These plans collectively provide a long-term roadmap for how local shops, restaurants, and creative ventures can flourish.
Support & Incentives: Tools Available for Businesses
Local business owners can tap into financial mechanisms such as Tax Increment Financing (TIF) and tax abatements, alongside state programs like the Minnesota Investment Fund and Minnesota Job Creation Fund. The City’s Economic Development Department and its Economic Development Authority (EDA) help businesses with site selection, permitting support, and guidance navigating these resources.
This guidance isn’t limited to established businesses — entrepreneurs starting out can get help applying for “gap financing” or finding programs tailored to innovative, sustainable, or community-oriented ventures.
Sustainability & Local Entrepreneurship
A growing number of Stillwater businesses are carving out competitive advantage by committing to sustainability. Sustainable Stillwater’s Green Business Directory highlights businesses that meet verified environmental standards — listing everything from eco-friendly print shops to native landscaping services. For those entrepreneurs and business owners, IX, this directory not only signals commitment to sustainability, but also connects them to customers who value ethical practice and green branding.
On that note, small artisan businesses are thriving—take Sma Ting Bakery, a micro-bakery on Laurel Street. It operates on organic, non-GMO ingredients, with hand-baked batches and a strong community ethos. These kinds of ventures reflect both creative independence and a strong local demand for quality.
Challenges & What’s Needed Next
No economy is without its obstacles. Rising costs, shifts in retail behavior, and the seasonal swing in visitor traffic put pressure on smaller businesses. Maintaining vibrant downtown storefronts amid inflation and competition from online retail is an ongoing concern. Also critical is more affordable housing for employees and reliable infrastructure upgrades to keep Stillwater attractive to both workers and investors.
To build on its growth, the community points toward expanded workforce training tied to local industry needs, consistent enforcement and communication around zoning and permitting, and further innovations in supporting sustainable practices. These will help ensure that investment, new businesses, and job growth continue together.
Where You Can Find Help
- Stillwater Economic Development Department and EDA — for site selection, city-led incentives and business planning support.
- Washington County Community Development Agency & Open to Business Program — regional aid and funding matching.
- Sustainable Stillwater MN — Green Business Directory resources and sustainability certification.
- Stillwater Chamber of Commerce — entrepreneurship networking, promotion, strategic development tools.
Stillwater’s economic story is one of collaboration: between government, business owners, creative entrepreneurs, and neighbors. For local businesses ready to lean in, the resources are here — supporting both legacy roots and new growth alike.