2021 Economic Indicators Show Overall Strength

Jan. 26, 2022 - City of Mandan management monitors several local economic indicators. The majority of statistics for the 2021 calendar year are now available.

Local usage taxes

• 1.75% sales tax. Collections reached a record of nearly $5.3 million, up 5% from 2020. The City uses revenue from a 1% sales tax, amounting to about $3.0 million to reduce property taxes plus assist with infrastructure costs, economic development and municipal debt reduction. Revenue from a 0.75% tax, generating nearly $2.3 million, is applied to pay off a bond issued for a voter-approved sports complex.
• 1% restaurant and lodging tax. Collections were also at a record of a little over $570,000, up 9% from 2020. Revenue is used for purchasing, equipping, improving, construction, maintenance, repair, and acquisition of buildings or property consistent with visitor attraction and promotion.
• 2% hotel occupancy tax. Collections were up almost 23% at $61,600, but still 14% below a 2012 peak of $71,500. Two motor inns have since been demolished, but another hotel opened during this time period. Revenue from the hotel occupancy tax is used to promote, encourage and attract visitors to the city. The majority is allocated to the Bismarck-Mandan Convention and Visitors Bureau.

Taxable sales and purchases. The total through the third quarter was nearly $213 million, up 2% from same period for 2020. Statistics on the 2021 fourth quarter will not be available from the state tax department until later this spring.

 Job openings.  North Dakota Job Service reported 3,289 online job openings in December 2021 for Burleigh and Morton counties. That’s 892 more openings than a year prior, up 37%. The state had 17,073 openings, up 33% from the same month a year ago.

Residential building. The City Building Inspection Department issued permits for 95 new residential units in 2021, down from 120 the year prior. Single family home construction accounted for 74 units compared to 95 in 2020. Manufactured homes on rental lots make up the difference. One multi-family permit was issued to rebuild a 42-unit building damaged by fire in 2020.

Commercial and industrial building. The cityissued permits for new construction, remodeling and addition projects totaling $40 million, up from 2020’s $37 million.

Value of all building activity. The value of allprojects for which building permits were issued is $62 million, similar to 2020.

Real estate sales. The Bismarck Mandan Board of Realtors reports the average sale price of residential property in Mandan was $282,034, up from $261,930 in 2020. This is on 387 units sold, compared to 402 the year prior. Average time on the market was 32 days, even shorter than 58 in 2020. The statistics include single-family home, condo, twin home and duplex sales reported through the multiple listing service.

The City of Mandan Assessing Department recorded 967 transactions for 2021 encompassing both commercial and residential properties, with 734 for transactions above a zero dollar amount and 458 of which were normal, arm’s length transactions. This compares to 879 total transactions in 2020, with 420 being normal, arm’s length transactions. These are sales on the open market between two unrelated parties, each with reasonable knowledge of market conditions and under no undue pressure to buy or sell. Other transactions might be between family members or involving other special circumstances.

Planning & land development highlights. The City Planning Department processed 50 applications for development requests such as zone changes, platting and annexations into city limits in 2021, a 20% increase over 2019 and 2020. Notable residential developments include:

• 19th Street SE Corridor. Keidel’s South Heart Terrace Fourth Addition and Heart Ridge Fourth Addition will bring an additional 85 single-family and 26 twin-family homes to areas area near Fort Lincoln Elementary School.
• North of Interstate 94. Sunrise View Estates Addition will create 62 single-family and twin-family lots off Highway 1806 with additional phases to follow. In the northwest area near Red Trail Elementary School, the West Hills Estates Fifth Addition contains 63 single-family and twin-family lots.

Utility and street construction is expected to occur in 2022 to serve these new subdivisions. More residential development opportunities are on the horizon with five other subdivisions under review or anticipated in 2022.

The Mandan Public School District is planning a new elementary school for the Lakewood area to open in 2023. A new high school for north central Mandan near Old Red Trail and Collins Avenue North will open in 2024, replacing the existing facility located off Sunset Drive. The new high school subdivision contains six lots for commercial development.

Note: Graphs showing the 10-year trend for many statistics are available at cityofmandan.com/bizupdates.