Having a small business in Duluth (sales, crime, house)

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My wife and I are considering the Duluth/North Shore area as a possible location to move to and expand our small business.

It is a fiber art business in which we sell supplies as well as finished products and things in between. The emphasis is in felt, so we're talking raw wool, wool roving, felting supplies, and most likely spinning supplies as well. We would not be delving into yarn or knitting and crocheting.
Right now it's strictly an internet business, but we are looking at opening up a storefront, because it is getting to be too big for our house and she also is getting numerous requests to do classes. We believe it is the next logical step for growth. She's been doing this for several years now, and has a strong brand and internet presence.
Unfortunately, the area we currently live in is not the best place in which to expand in terms of a physical location.

A lot of our sales come from places in the north such as Minnesota, Wisconsin, Michigan, Ohio, New England, etc. We like Minnesota.
We really like Duluth and the towns along the North Shore a lot after spending some time up there a little while back.
I've read virtually every post in the Duluth forums so I've seen all the good and the bad people have to say about it.
Being touristy is a huge plus as fiber artists seek each other out while traveling. Foot traffic is something we feel would be very important, and having local colleges can only be a plus to the success of our business.
Canal Park looked interesting if not ideal, and we also liked Fitgers. I would like to know if there are other places around town that are in the same vein as those. Suburban strip malls are out of the question.

I am looking for answers about the current business climate in Duluth.
Could such a place be successful there? Does a fiber art shop of it's kind already exist in the area? If so, is there room for another one?
Would one of the smaller towns around be better for us perhaps?
Does the city do things to promote these kind of businesses in the area? Is it business friendly at all? How are taxes?I've heard opposing views, but would like some up- to-date information on that.
Are there local small-business associations to be aware of?
How is the local arts and crafts scene, and are people familiar with felt and felt-making?
Are there any local fiber arts guilds?

We are a couple in our early-mid thirties with a small child who will be in school in a few years. Good schools nearby are a consideration. We're both from small towns, so those aren't out of the question and Duluth is about as large of a town as we care to live in.
Crime isn't a huge concern. We would be coming from a large metropolitan area in another part of the midwest in which the hub city has some of the worst neighborhoods in America. We simply want an improvement in that area. The safer the better of course.
Weather is a non-issue for us. Trust me.
We also plan on making a few more visits to get a better feel of the place and culture. We love laid-back and blue-collar, and don't care at all for fleeting coastal trendiness. I believe we are realistic in our expectations about Duluth, knowing it's not a place to make your millions. We just want our business to be successful. Any help and answers would be appreciated.

[newcastle]

Try contacting the greater downtown council Downtown Duluth Businesses and Tourism- The Greater Downtown Council they might be able to give you a better idea on relocating or the Duluth Chamber Duluth Minnesota Businesses - Duluth MN Chamber of Commerce