Owatonna Fast Facts

Owatonna's current population is around 27,000 and has grown by more than 1,100 people between 2020 and 2022 alone. While growth will likely ease slightly through the 2020s, Growth is anticipated to remain strong, which is largely attributed to Owatonna’s diverse and growing economy.

Residential

• Single family residential neighborhoods comprise much of the land in Owatonna, roughly 36 percent, and nearly all of which is east of I-35. There are areas higher density housing as well, especially clustered around downtown.
• The median age of residents rose during past decades and senior age groups swelled as the Baby Boom generation has gotten older. This influences the community and its needs as age impacts housing, goods, and service needs.   
• More and more people are choosing to live in neighborhoods where they can easily walk to do their daily errands. This influences the types of housing built in downtown, and other areas of the city which have a mix of uses.
• There is also a significant pent-up demand for single-family housing but there are a number of critical issues that are impacting the supply and demand including inflation, building costs and land constraints in growing areas of the city.

Industrial

• Industrial areas cover nearly 17 percent of Owatonna, mostly west of I-35 and northwest of downtown. These areas function as a regional center for industrial businesses, which take advantage of proximity to I-35 and US Highway 14.
• Production, Distribution and Repair (PDR) industry sectors account for nearly 38% of jobs in Owatonna. These sectors typically provide higher-paying jobs and growth has largely been driven by manufacturers and logistics firms that have either expanded their local operations or been attracted to Owatonna. Over the last decade, these industries have been the main engine for job growth in Owatonna while all other sectors saw a net loss of jobs.
• Despite nearly 1 million square feet of Industrial space being developed 2020-2021, the vacancy rate is low.

Commercial

• Commercial land makes up about 7 percent of the city, with downtown serving as the hub of most of the local businesses and traditional retail. There are also highway commercial uses along the major roadways (I-35 and US-14) such as big box retail, hotels, gas stations and other service-oriented businesses.
• Traditional retail development is hindered by the lack of land sites that meet the criteria of national/corporate retailers, which has a dampening effect on attracting large chain restaurants. There is also growth potential for developments that favor independent (i.e., mom and pop) retailers.   

Parks and trails account for about 10 percent of the city area, which support and provide an amenity for the residential, commercial, and industrial areas across the city. The park system includes 33 parks (totaling 807 acres), 11 playgrounds, 5 basketball courts, 13 baseball and softball fields, 7 tennis courts, 4 multipurpose fields, an ice rink, and almost 10 miles of trails.

The Parks and Trails System Master Plan (adopted in 2019) detailed existing parks and trails and proposed an action plan with the following recommendations and improvements.

Future parks: As Owatonna develops to the north and east, park land should be secured to ensure distribution across the city. The already developed southeast portion of Owatonna is lacking parks and amenities but complementary features such as play areas could be considered when planning the future soccer fields. To aid in future funding opportunities and improvements the city could seek regional park status for Kaplan’s Woods, Lake Kohlmier, and adjacent public lands.

Programming: With changing needs of citizens of Owatonna, the city should build flexibility into parks. Master plans should be designed to determine best use of park space, trail connections, amenities across the park system to ensure accessibility for all. The school district is an invaluable resource and partner and the city should work with the school district to consolidate fields currently existing in the park system to the new high school to serve future athletic needs.

Trails: The city should continue focusing on trail development, safety, and maintenance as this is of great importance to the public. The city searches for property along natural greenways and unused rail corridors. The city continues to establish relationships with the County and neighboring communities to partner on regional trail opportunities to further connectivity and funding opportunities.

Transportation refers to walking, biking, driving, transit, and any other way you get from here to there. Owatonna has 173 miles or roadway, 62 miles of sidewalk, 19 miles of trails, and 16 bus stops.

The City’s 2040 Transportation Plan (adopted in 2021) identified issues and opportunities pertaining to transportation.

Sidewalks: the presence of sidewalks is generally limited to the core areas of Owatonna in and around downtown, in historic neighborhoods, where homes were built before cars became popular. Areas outside of the core where homes were built later in the twentieth century generally do not have sidewalks.

Trails: the trail system generally follows the Straight River and Maple Creek connecting with Downtown Kaplans Woods Park, and Mineral Springs Park (more info see   Parks ).

Traffic: No road in Owatonna were considered over their design capacity. Portions of North St and Mineral Springs Rd are anticipated to approach capacity and future conditions suggest those roads will be over capacity by 2040. Other roadways expected to approach or exceed capacity by 2040 include portions of Bridge St, 18 th   St, and North St. Most roads are expected to remain below capacity. 

Crash locations: The intersection of Cedar Avenue and 18th Street was of most concern with numerous crashes resulting in injury including serious injury. Two other intersections – Hoffman Drive and 21  st    Ave; Main Street and Grove Ave – are also approaching a critical index.

Transit service is operated by Southern Minnesota Area Rural Transit (SMART) with one circulating route running hourly on weekdays between Owatonna Hospital, Downtown, and Hy-Vee and other destinations. There are also on-demand services including trips to Medford, Blooming Prairie, and Ellendale.

For the purposes of this plan, the following terms are defined:

“Sustainability” - meeting the needs of the present generation without jeopardizing the ability of future generations to meet their needs.

“Resilience” - the ability to adapt to changing conditions and recover rapidly when disruptions or events occur.

Owatonna has excellent access to natural resources – protecting and sustaining these resources is a long-term priority. 

Owatonna’s natural resources include the Straight River, Lake Kohlmeier, numerous creeks, and a plethora of city-owned parks and trail lands. Much of the lands along waterways are also designated floodway and floodplain with stricter development regulations.  

Current initiatives include tree planning and management programs, river cleanup, a yard waste compost site, designation as Pollinator Friendly City. 

Opportunities to further sustainability and resilience include:

• The City’s Public Works objectives to: operate a Municipal Separate Storm Sewer System (MS4), wastewater outreach and education, maintain a healthy and diverse urban forest
• Native plant amenity areas can be used as open space as stormwater retention as well as open space, attract pollinators, and reduce need for chemicals and lawn mowing. 
• Establish a shoreline ordinance to prevent erosion, flooding/washout, and protect from pollution and invasive species. 
• Participation in GreenStep Cities