Building a Future Rooted in Community and Innovation

A growing city leveraging lakeside assets, fiber-optic infrastructure, and strategic partnerships to create economic opportunity while maintaining its unique charm

Buffalo, Minnesota, is a peaceful lakeside community that masterfully blends small-town charm with strategic growth. Nestled between two scenic lakes, the city has evolved from its rural farming roots into a thriving residential and business hub. “It’s a nice place to live,” says Mayor Steve Downer. “Safe, peaceful for the most part.” With a downtown anchored by the waterfront and a growing retail scene, Buffalo retains its unique identity while embracing progress.

“When you’re in Buffalo, you know you’re in Buffalo,” Downer explains. “You’re not in a big city suburb somewhere.” This balance of preservation and innovation makes the city a model for sustainable, community-focused development.

A Unique Small-Town Lifestyle

Buffalo’s identity is deeply tied to its natural assets and tight-knit community. “It’s become somewhat of a destination on certain weekends,” notes Downer, “it was a rural farming community, and it’s grown into a bit of a bedroom community.”

Downtown Buffalo thrives on its distinctive retail scene, anchored by “occasional stores,” creating a buzz of activity. “There are stores that are only open on specific weekends,” explains Community Development Director David Kelly, “we have a strong retail group downtown that has events and promotions that happen on those weekends that make the downtown pretty thriving.” The city is now working to attract more year-round businesses with consistent hours to sustain downtown energy beyond weekends.

A major 2026 project, the 1^st Avenue Northeast street reconstruction, will further enhance the area. The project, driven by the need for public utility upgrades, will introduce decorative street lighting, additional trees, and improved walkability. “There is a lot of investment happening downtown that has been spurred off of the unique retail scene we have that has grown from occasional stores and now includes all kinds of retail,” Kelly says. Through these efforts, Buffalo ensures its growth never comes at the expense of its character.

Economic Development & Business Incentives

Buffalo’s economic strategy combines targeted incentives with infrastructure investments to foster business growth. “As far as incentives and economic growth, our council, our staff has a strong awareness of what this community needs,”  explains City Administrator Taylor Gronau. “So we kind of cater our decision making and our incentives toward that.”

The city actively utilizes Tax Increment Financing (TIF) districts, primarily focused on housing development. For business expansion, tax abatements serve as a key tool, particularly for the downtown fiber network project that’s positioning Buffalo as a tech-ready community. “We have a municipal fiber utility that we are investing a lot of resources in because we know that that’s a service that means a world of difference and is the future of our community,” Gronau says.

The municipal fiber utility represents a forward-thinking investment in Buffalo’s economic future. “Our fiber utility doesn’t stop at one gig,” says Facilities and IT Director Jason Meusburger. “It’s going to be able to offer up to 10 gigs.” This infrastructure gives Buffalo a competitive edge in attracting remote workers, tech companies, and even small data centers. “Having city-owned and run utilities and the ability to innovate on top of that is hopefully going to be exciting for upcoming businesses,” Meusburger adds.

Light manufacturing forms the backbone of Buffalo’s industrial sector, with Whirltronics serving as a standout success story. “They specialize in lawnmower blades,” says Kelly. “and at one point were – and may still be – the second largest supplier of lawnmower blades in the country.” The city aims to replicate this success in its new 100-acre business park, seeking light industrial tenants that offer stable, well-paying jobs. “We’re hoping to find an anchor tenant to really kick off that process,” Kelly notes, emphasizing the city’s focus on businesses that can thrive long-term in Buffalo’s business-friendly environment.

Through this multi-pronged approach, Buffalo is creating an ecosystem where businesses of various scales can establish roots and grow.

Infrastructure & Future Expansion

Buffalo’s infrastructure strategy balances immediate needs with long-term growth through its comprehensive Five-Year Capital Improvement Plan (CIP). “We develop a five-year CIP that includes water, wastewater, stormwater, streets,” explains Gronau. “We look at that on a continual basis and try to continue to meet those needs.” This forward-looking approach ensures the city can meet both current demands and future expansion requirements.

The city’s utility system faces unique challenges due to Buffalo’s expansive geography and dual-lake topography. “We have 28 lift stations, five water towers,” notes Gronau, highlighting the complex infrastructure network. “There’s a lot of infrastructure here to maintain and it’s a core focus of our city council, of our staff.”

“Our plant runs at about 50 to 60 percent capacity,” Meusburger adds, indicating room for growth in wastewater treatment. A key upcoming project is a new electric substation that will “double our capacity and distribution capabilities,” according to Meusburger, while providing redundancy for existing customers.

The 100-acre business park expansion represents Buffalo’s most ambitious development project. Located on a former gravel pit site, the property offers prime commercial real estate opportunities. “We purchased it in 2022,” says Kelly. “It’s right along a state highway, which is appealing for the city.” The park benefits from strategic advantages including proximity to the new substation and access to the municipal fiber network. “We’re looking at the potential for incentives with that as well,” Kelly explains, noting how these infrastructure investments create a compelling package for potential tenants.

This infrastructure-first approach ensures Buffalo can accommodate growth while maintaining the reliable services that make it an attractive location for businesses and residents alike.

Housing & Residential Growth

Buffalo’s recent housing study reveals critical needs across all market segments. “The outcome of that study really proved what we had suspected, which was that we have a need for housing of all types and at all price points,” says Kelly. The city particularly requires more senior living options and market-rate developments. “We haven’t had a market rate project in a couple years that was at a higher price point or considered luxury,” Kelly notes.

Two major projects aim to address these needs. A 210-acre development will introduce 900+ units phased over 5-7 years, while the Wright County Government Center redevelopment promises downtown mixed-use space with potential marina access. “That’s a once-in-a-lifetime opportunity for the city,” Kelly says of the government center project. “We don’t typically have  a potential residential development right on the lake, right off the downtown.”

Affordability remains an ongoing challenge. “We’ve had a considerable amount of single-family homes that have been built, but some of the price points that they’re being built at just with the cost of home construction, they’re still unaffordable for some people,” Kelly explains. The city is exploring incentives to encourage diverse housing options, using tools like TIF districts to make projects viable. As Buffalo grows, these strategic housing initiatives ensure the community can accommodate new residents while maintaining its character and quality of life.

Leveraging Natural Assets: The Lakes

Buffalo’s twin lakes are central to both its identity and development strategy, serving as recreational hubs and valuable economic assets. The city has made significant investments in enhancing the lakefront in recent years, including the State Highway25 project, which introduced more green space and activated the shoreline with amenities designed to encourage year-round use. “We want to encourage residents to utilize the lake more,” says Kelly, pointing to growing participation in community events like the Kites on Ice Festival and a new hockey tournament that bring energy and activity to the waterfront.

Looking ahead, the proposed redevelopment of the Wright County Government Center includes the potential addition of a marina, with early concepts suggesting about 50 slips divided between public and private use.

Overall, the city is focused on deepening residents’ connection to the lakes through thoughtful improvements and programming. “There’s a lot of unique ways we’re trying to get people to be more acclimated and comfortable with using the lakes as they are,” says Kelly, reinforcing the lakes’ role as a cornerstone of Buffalo’s community life and long-term vision.

Collaboration & Strong Partnerships

Buffalo’s success stems from its robust network of partnerships and collaborative spirit. The City of Buffalo Chamber of Commerce plays a pivotal role, working closely with municipal leaders on initiatives ranging from business retention to downtown revitalization.

“Sue Olmscheid is the Chamber Director, and I probably call her once a week to walk through things,” says Kelly, highlighting their productive relationship. “We gain invaluable insight into the business community from her.” Together, they’ve launched programs like downtown façade improvement grants and a “Buy Buffalo” local spending campaign.

This culture of cooperation extends throughout city operations. “All our departments really come together, work together, support each other,” notes Meusburger. Externally, Buffalo maintains strong ties with schools, churches, and organizations like the Minnesota Municipal Utilities Association (MMUA).

“We have a customer service director…that reaches out to our local churches and our schools and…sits down and talks with them, it’s just an open dialogue,” Meusburger adds. “So we take those and we bring them back into our leadership meetings and we talk to the mayor and our elected officials on how we can not only be a part of the community, but just deliver those services the way they want, the way they expect.”

Downer’s leadership philosophy reinforces this collaborative approach. “My basic approach to the city operations is to do the basic things really well,” he says, emphasizing core services like public safety and utilities. Beyond municipal operations, the city supports community-driven initiatives, from senior fishing programs to woodworking spaces, creating a model of public-private partnership that drives Buffalo’s continued growth.

Priorities for the Future

Buffalo stands at an exciting crossroads, skillfully balancing its unique small-town character with strategic investments that promise sustainable growth.

Looking ahead, several key priorities reflect this balanced vision. Downtown revitalization remains at the forefront, with the planned reconstruction of 1st Avenue NE and the redevelopment of the Wright County Government Center set to enhance the city’s civic and commercial heart. Another major focus is the expansion of Buffalo’s fiber network, which Downer notes will “help alleviate upward pressure on property taxes” by improving efficiency and broadening the city’s technological capabilities.

Residential growth is also a priority, with the Pulaski Shores housing development expected to bring over 900 new units to the area, addressing a range of housing needs. On the economic front, industrial park recruitment continues. “I think with the electric and the fiber together, you really have a winning combination for  the right type of business to come in and thrive here in Buffalo,” notes Downer.

Underlying all these efforts is a simple but ambitious goal. “Let’s have people live and work here. That’s kind of the mission that we’re hopefully going to achieve,” says Meusburger.

As Buffalo moves forward, its success will continue to hinge on strong partnerships, utility innovation, and an unwavering commitment to community identity. With these priorities guiding its path, Buffalo demonstrates how growing communities can evolve without losing what makes them truly special.

AT A GLANCE

Who: City of Buffalo, Minnesota

What: A growing lakeside community balancing small-town charm with strategic investments in infrastructure, downtown revitalization, and business development

Where: Buffalo, Minnesota, USA

Website: www.ci.buffalo.mn.us