Active Growth in the Hidden Gem that is Hugo, MN

One common theme exists for most communities marketing themselves to families looking for a place to live and work and companies or business owners seeking a location for their operations: the ability to offer a mix of business growth and opportunity alongside desirable amenities boosting quality of life.

Hugo, MN, nestled in the northeastern edge of the Twin Cities metropolitan area, has that all within its borders. 

“The western side of Hugo is growing with emerging communities and business growth, while the eastern side has a rural and agricultural focus,” said Rachel Juba, City of Hugo Community Development Director. “Hugo has a good blend of activity, making it an extremely attractive city to work and live in.”

Hugo is amid a flurry of activity, from residential real estate projects to company expansions and downtown development, offering opportunities for individuals and businesses.  

Filling the residential need

Like many communities, Hugo is experiencing a housing issue. For Hugo, that issue is the fact many single-family homes in the area list at more than $600,000, with a minimal supply available under $350,000. Simultaneously facing a significant rise in population - up 20% over the last decade to just over 17,000 people today - Hugo has to support a rapid expansion of residential home construction. About 150 new construction permits are approved annually, most of which are single-family homes with a few apartment concepts. In an effort to reduce barriers to housing, the Hugo City Council is facilitating a residential zoning review this fall to evaluate current zoning districts and determine if they meet the market demand and goals of the City. 

“We’re looking for a deep dive of what zoning looks like today and where we would like it to go,” said Juba. “And if our code can attract  ‘missing middle’ housing projects such as rental townhomes.”

Corporate expansions

Much of the residential growth stems from Hugo being home to several corporate operation facilities. However, while new commercial construction in Hugo has followed a similar path as other cities with slow growth since the COVID-19 pandemic, existing companies have pursued expansion projects. 

One example is Schwieters Companies, which has specialized in interior finishes for residential and commercial new construction projects for over 40 years. Schwieters has consistently expanded its campus in Hugo from 1999 to the present, including seven buildings to house headquarters, roof and floor trusses manufacture, a lumberyard, and more. The company’s capabilities match Hugo’s targeted residential growth.

“Schwieters is perfectly situated to provide building material to support Hugo’s local housing growth, hopefully at a lower cost due to proximity,” said Juba.

Xcel Energy, the major U.S. electricity and natural gas company operating in eight states, relies on its Hugo Training Center for the continued education of its employees. Necessary training for electricians, journeymen, and other roles is provided for standard operating procedures and emergency response tasks. Area fire departments, first responders and Xcel employees undergo joint training on specialized instruction for full-scale emergency drills, gas leaks and more. Xcel recently announced plans to construct a 40,000-square-foot facility for nuclear training in 2025 or 2026. 

Downtown redevelopment

Downtown Hugo has historically been a place for the community to shop and dine. However, numerous businesses have been demolished or burned down over the years, limiting commercial businesses in the area. 

“It's the location of Hugo City Hall and Lions Volunteer Park, which hosts the popular Good Neighbor Days,” said Juba. “People want to be there and spend time in the area.”

A significant part of understanding Hugo’s potential is a corridor visioning study of Highway 61 through the Hugo city limits, partnered by the City, MnDOT and Washington County. The study, which began in January 2023, will consider future developments in Hugo to support economic growth, community investment and long-term transportation goals.

“County Road 8 and Highway 61 are the heart of Hugo,” said Juba. “The development of Highway 61 itself and adjoining areas will be critical to Hugo’s future.”

The City has always had an eye on developing its downtown, actively purchasing blighted properties for more than 20 years. As a result, the City owns about five acres, which it is actively marketing with MNCAR as city-owned properties. The City and Hugo Economic Development Authority are intentionally patient in finding suitable entities, specifically restaurants and destination entertainment, in making a special place for the community, said Juba.

“An incredible advantage is the city will sell a site to the right entity for $1 if it fits the vision for downtown Hugo,” she said. 

Hugo, MN: Washington County’s hidden gem

All that activity complements Hugo’s existing advantages, said Juba.

“We have an abundance of natural amenities, with 18 parks and walking trails, yet Hugo is only 20 minutes from downtown St. Paul,” said Juba. “Hugo is a hidden gem, and we’re eager to make more people aware of the possibilities here.” 

To learn more about Hugo and the other wonderful communities of Washington County,  visit the Washington County Community Development Agency website or contact us today!