Stillwater, Minnesota, renowned for its picturesque riverfront and historic charm, has cultivated a dynamic economic environment that harmoniously blends tradition with modern innovation. This unique synergy has positioned Stillwater as a vibrant hub for both residents and businesses.
Tourism and Hospitality: The Heartbeat of Stillwater
The city’s rich history and scenic beauty have long made it a magnet for tourists. The tourism and hospitality sector accounts for approximately 30% of local business activity, with this figure rising to an estimated 50% in the historic downtown area. Visitors are drawn to the boutique shops, diverse dining options, and events along the St. Croix River, all of which contribute significantly to the local economy.
Diversifying the Economic Portfolio
Beyond tourism, Stillwater has experienced growth in sectors such as healthcare, manufacturing, and technology. The healthcare industry offers a range of medical and administrative roles, providing stable career paths for residents. Additionally, the manufacturing sector has evolved to include facilities focused on biomedical advancements and innovative consumer products, reflecting the city’s adaptability and forward-thinking approach.
Community Initiatives and Development
In 2021, the Stillwater City Council established the Stillwater Economic Development Authority (EDA) to enhance economic development efforts. The EDA aims to study and analyze economic needs, facilitate site assembly, and pursue public financing for development projects. This initiative underscores the city’s commitment to fostering a supportive environment for businesses and entrepreneurs.
Furthering this commitment, the city welcomed Jason Zimmerman as the new Community Development Director in early 2026. Zimmerman is actively working on the Comprehensive Plan, which will guide Stillwater’s community and development efforts for the next two decades. His leadership is expected to build upon the city’s positive momentum and drive meaningful growth.
Supporting Local Businesses
Stillwater’s dedication to its local businesses is evident through various initiatives. The city collaborates with the Washington County Community Development Agency (CDA) to assist businesses with site selection and offers financial resources such as Tax Increment Financing (TIF) and the Minnesota Investment Fund. These programs aim to provide financial assistance to viable projects with unique economic development needs, ensuring that businesses have the support they need to thrive.
Looking Ahead
As Stillwater continues to evolve, the city remains committed to balancing its historic charm with modern economic development. By supporting a diverse range of industries and fostering a collaborative community spirit, Stillwater is poised for sustained growth and prosperity.