Doing Business

Hubbard County and the Heartland Lakes communities—Park Rapids, Nevis, Akeley, Dorset, Lake George and surrounding area—offer a diversified economy anchored by advanced manufacturing and precision machining, agribusiness and food processing, trade/retail/transportation, tourism and outdoor recreation, and a growing entrepreneurial landscape supported by HLDC’s programs and facilities (e.g., The Hangar coworking). The region emphasizes a “live where you vacation” quality of place, aligned with HLDC’s mission to inspire and retain economic growth and its values of accountability, integrity, leadership, creativity and collaboration. Infrastructure and policy choices in the area are shaped to support BRE, investment, and workforce housing initiatives.

Infrastructure highlights

• Transportation and access: The Heartland Lakes region is served by a network of U.S. and state highways with Park Rapids as a central hub; with major routes of U.S. 71 and State Highway 34 supporting regional traffic to tourism destinations and manufacturing clusters. Local and regional road projects and maintenance are typically coordinated through county and state agencies to maintain freight reliability for manufacturing, food processing, and retail supply chains. Park Rapids is the closest gateway for air access, with a municipal field and nearby Bemidji Regional Airport providing regional service. Minneapolis–Saint Paul International Airport is the primary hub for longer-haul air travel. This mix supports both local business logistics and visitor access, which is critical for tourism-based revenue diversification.
• Utilities and infrastructure capacity: The HLDC region benefits from reliable utility networks (electric, natural gas, water/sewer) and ongoing infrastructure investments common in Minnesota’s regional growth corridors. Local economic development strategy emphasizes upgrading industrial land and ensuring utility capacity aligns with manufacturing and processing needs, as well as housing development tied to workforce growth. Park Rapids and surrounding towns actively pursue downtown and corridor revitalization, supported by state and regional programs that fund Main Street economic revitalization and related infrastructure improvements. These investments enable retention and expansion of existing businesses and attract new investment in high-tech, advanced manufacturing and food processing.
• Broadband and digital connectivity: Community and regional planning efforts prioritize reliable broadband as a fundamental economic driver for advanced manufacturing, remote work, and entrepreneurship—areas where HLDC already supports through initiatives like The Hangar coworking and startup supports. While specific fiber deployment statuses vary by community, Minnesota’s development framework and funding channels (including regional planning and DEED programs) are oriented toward expanding high-speed internet access to improve business operations, remote work options, and e-commerce capabilities. Local and state resources are available to assess current coverage and planning for future expansion.

Taxes

• State tax framework: Minnesota’s base state sales tax is 6.875%. Local jurisdictions may add additional local sales taxes, which can push the total rate above the state base in many places. Businesses should assess total tax exposure by customer location, particularly for retail, hospitality, and manufacturing supply chains that involve local sales or use taxes.
• Local and county sales taxes (as of 2025): Local sales taxes in Minnesota are dynamic and can change by city or county; Minnesota’s Department of Revenue and SWIFT updates indicate when new or adjusted local taxes can become effective, sometimes on short notice.