Downtown Revitalization: Defining an Economic Development …€¦ · · 2009-06-05Downtown...
Transcript of Downtown Revitalization: Defining an Economic Development …€¦ · · 2009-06-05Downtown...
Downtown Revitalization:Defining an Economic Development
Process for Your Downtown
Delaware League ofLocal Governments
October 27, 2006
Rick Ferrell, Principal, Retail Market Answers, LLC Diane Laird, Delaware Main Street, DEDO
Defining an EconomicDevelopment Process for Your
Downtown
Today’s topic is big!
What would you like to hear moreabout?
Q & A and your interaction
Defining an EconomicDevelopment Process for Your
Downtown
What does revitalization start with?
Are there certain plans, projects, orattitudes that are “keys” to success?
When your town is “done” - whatspecifically do you see?
Defining an EconomicDevelopment Process for Your
Downtown
Physical environment– Streetscape, facades, banners
Local and regional assets– Natural, historical, political
Preserved sense of place
Defining an EconomicDevelopment Process for Your
Downtown
What does a strong business districtlook like?
Low vacancy Open 12-15 hours a day Foot traffic Healthy mix of businesses Confident, successful business owners Amenities that support the business offerings Businesses want to locate there
Defining an EconomicDevelopment Process for Your
Downtown
What does a strong business districtlook like?
Local jobs Cooperation of local government Tourism Strong merchant communications “good bones” Historic components Safe and secure Residences
Defining an EconomicDevelopment Process for Your
Downtown
Using private sector principles
Competitive advantages and disadvantages:public vs. private
Defining an EconomicDevelopment Process for Your
Downtown
A community CAN exert influence…
IF there is a strong desire to do so,
AND
if that desire is backed by agreementand a strong plan of action.
Defining an EconomicDevelopment Process for Your
Downtown
The four-part ED Process:
Assess
Agree
PlanAct
Defining an EconomicDevelopment Process for Your
Downtown
You can assess first, and then agreeor
you can agree first, and then assessor
you can agree and assess concurrentlybut…
Defining an EconomicDevelopment Process for Your
Downtown
…you cannot develop effectivestrategies without both
assessing the current situationAND
agreeing on the desired future.
Defining an EconomicDevelopment Process for Your
Downtown
Step 1: Assess
CBD review
Building & business inventory
Market analysis
Define trade area
Defining an EconomicDevelopment Process for Your
Downtown
Commercial Business District Review –Downtown Tour
Assess the conditions that advance or hindercommercial activity.
Drive it – The windshield tour Walk it – The storefront tour Visit local stores Visit local restaurants Visit local stakeholder offices Encounters with other shoppers
Assess
Defining an EconomicDevelopment Process for Your
Downtown
Visit local stakeholder offices
• Chamber of Commerce• City Hall
• Economic Development Office• Police Station• Licensing and Inspections
• Fire Hall• Real Estate Brokers
Assess
Defining an EconomicDevelopment Process for Your
Downtown
Why assess the downtown?
A “snapshot”captures amoment in timeto evaluate thedowntown.
Assess
Defining an EconomicDevelopment Process for Your
Downtown
Building and Business Inventory
Name of business and building owners Contact information Address Category of business Lease term (rent if available) or own Relevant info (strong sales, at risk, wants to sell etc.) Zoning - not necessary if all the same Size of space – Gross Leasable Area (GLA) Number of floors
Assess
Defining an EconomicDevelopment Process for Your
Downtown
Building and Business Inventory
Multiple occupants of buildingsScope of downtown goods and servicesWay to measure progress and articulating
needMonitoring vacancyGLA: match the inventory “on hand” with
business prospect’s
Assess
Defining an EconomicDevelopment Process for Your
Downtown
Market Analysis
Has your town undertaken a marketanalysis?
Are you currently working with it?
What makes a market analysis effective?
Assess
Defining an EconomicDevelopment Process for Your
Downtown
Market Analysis
Types of market data research:
Primary (original) research:– Surveys (mail, phone, customer intercept)– Focus groups
Syndicated data – census derived, secondary :– ESRI, Claritas:
Demographics Supply/Demand Consumer Spending
Assess
Defining an EconomicDevelopment Process for Your
Downtown
Market Analysis
Data:
Assess
“Analysis”: “ 10% of shoe stores are located locally; 30 %
are elsewhere in the county; and 10% areoutside of the county.”
Defining an EconomicDevelopment Process for Your
Downtown
Market Analysis
An effective market analysis will interpretand blend the findings of the primary and
secondary research and providesubstantive analysis of the growth
opportunities in your market.
Assess
Defining an EconomicDevelopment Process for Your
Downtown
Market Analysis
Why specifically do we need the analysis? What are we trying to accomplish with it?
For instance… Are there specific blocks we want to
address? Is there a key building or location that we
are trying to fix?
Assess
Defining an EconomicDevelopment Process for Your
Downtown
Market Analysis
Market analysis is tosustainable/appropriate economic
development as an x-ray is to a dentist.
Market Analysis is not the end…it is a means to an end!
Assess
Defining an EconomicDevelopment Process for Your
Downtown
Market Analysis
Why do you undertake it? strategic planning grants and funding test your community vision and preferences test sustainable businesses and act as a
recruitment tool to answer questions fromproperty owners and prospective businesses
Assess
Defining an EconomicDevelopment Process for Your
Downtown
Trade Area
Assess
What is it? Where the majority of shoppersare coming from.
The way to identify the trade area is toconsider:– Shopper intercept surveys, current customer
traffic/travel patterns, discussions with localmerchants, discussions with local governmentofficials.
Defining an EconomicDevelopment Process for Your
Downtown
Trade Area
Assess
Why define the trade area?
It represents the area with the greatestpotential to grow the current customer base.
Defining an EconomicDevelopment Process for Your
Downtown
Trade Area
Assess
New business prospecting Allows a greater understanding of customer
base…where they are and where they are not Expresses drive times Establishes baseline data Targeted customer marketing Provides a context for other syndicated data
and analysis
Defining an EconomicDevelopment Process for Your
Downtown
Step 2: Agree
Building consensus is a requirement ofcommunity-driven growth.
The alternative is adeveloper-driven approach.
Defining an EconomicDevelopment Process for Your
Downtown
Agree
Building consensus
Who better should define the future of thecommunity than those who already have
an investment in the community?
Ownership of the planning should be bystakeholders.
Defining an EconomicDevelopment Process for Your
Downtown
Agree
Building consensus
Ways to gain public opinion: Surveys Focus Groups – in depth Intercept surveys Stakeholder interviews
Defining an EconomicDevelopment Process for Your
Downtown
Agree
Building consensus: Stakeholders
Who takes part in stakeholder interviews? Residents Business owners Civic leaders Property Owners Public Officials Realtors Developers
Defining an EconomicDevelopment Process for Your
Downtown
Agree
Building consensus: Stakeholders
What needs to be addressed in a stakeholderinterview?• Overview (relationships of stakeholders
downtown)• Vision• SWOT• Past and current experiences• Resources
Defining an EconomicDevelopment Process for Your
Downtown
Agree
Building consensus: Property Owners
Property owners are the “gatekeepers.”
The property owner decides who occupiestheir space.
Defining an EconomicDevelopment Process for Your
Downtown
Agree
Building consensus: Property Owners
The lease is key to establishing a businessculture in the commercial district:
– Hours of operation– Use and Occupancy controls– Visual standards– Operating Standards and Practices– Remodel provisions
Defining an EconomicDevelopment Process for Your
Downtown
The four-part ED Process:
Assess
Agree
Plan
Defining an EconomicDevelopment Process for Your
Downtown
Step 3: Plan
A strategic merchandising plan isdeveloped to affect and manage
the retention and recruitmentaspects of the downtown
business district.
Defining an EconomicDevelopment Process for Your
Downtown
Strategic Merchandising Plan
What is it?It is the vision for the downtown, created by
the stakeholders, and tempered by reality.
– A planning tool– Done on a space-by-space basis– A working document– A marketing tool– A reality check
Plan
Defining an EconomicDevelopment Process for Your
Downtown
Strategic Merchandising Plan
A strategic merchandising plan is the “line-up” of businesses that, if you could have
them, would represent the highest andbest use of each building and parcel in
your commercial business district.
Plan
Defining an EconomicDevelopment Process for Your
Downtown
Strategic Merchandising Plan
Why do you need one?The value of a strategic merchandising plan is
proactive planning. The alternative is “youget what you get.”
Growth by CHOICE not by CHANCE.
Plan
Defining an EconomicDevelopment Process for Your
Downtown
Business Retention and Expansion
Four categories of merchants at risk:
Those under-utilizing business opportunities Those with successorship issues Those at risk of failure Those who need relocation
Plan
Defining an EconomicDevelopment Process for Your
Downtown
Business Recruitment
Filling space vs. strategic planning
Value is enhanced… when growth is both sustainable and preferred with critical massing of available space when merchandising opportunities are leveraged by business synergy
Plan
Defining an EconomicDevelopment Process for Your
Downtown
Site Selection
– Is the building appropriate for thedesired use? Size of space (GLA) Size of frontage Co-tenancy Local/regional/national Categories (home improvements, apparel/accessories) Tenant improvement allowance (TIA) Combining space Back-of-the house considerations (shipping/receiving)
Plan
Defining an EconomicDevelopment Process for Your
Downtown
Resource Planning
Human Resources• Private, volunteer-driven revitalization programs
• Main Street or non-preservation-based
• Staff-driven programs• Town or city offices
• Individuals, Institutions and Private Partners• Universities, volunteers, National Trust, SBA, private
partners
Plan
Defining an EconomicDevelopment Process for Your
Downtown
Resource Planning
Capital Resources• Understand specific funding requirements• Identify potential funding sources (Federal, State,
local) • Identify incentives (local creative individualized
incentives, energy, etc.)• Leveraging private re-investment
Plan
Defining an EconomicDevelopment Process for Your
Downtown
The four-part ED Process:
Assess
Agree
PlanAct
Defining an EconomicDevelopment Process for Your
Downtown
Step 4: Act
The conclusion:
Act on the first three steps.
Defining an EconomicDevelopment Process for Your
Downtown
Acting on the plan
There must be ateam in place to implement the plan.
Without a team, the plan is limited.
Act
Defining an EconomicDevelopment Process for Your
Downtown
Acting on the plan
Along with the team, there must befinancial resources in place to
implement the plan.
Without financial resources,the plan is limited.
Act
Defining an EconomicDevelopment Process for Your
Downtown
Acting on the plan
Options to consider when the plan islimited:
• Divide the plan into phases• Reduce the scope of work• Continue to research and build resources• Keep data base current
Act
Defining an EconomicDevelopment Process for Your
Downtown
Acting on the plan
The process of revitalization is fluidbecause the market is fluid.
As a result this work requires time,patience, clear direction, continuity and
great communication.
Act
Defining an EconomicDevelopment Process for Your
Downtown
Acting on the plan
To successfully implement and managethe plan:– Expect resistance and rejection– There is value in rejection– Meet regularly with relevant stakeholders– Re-assess the plan as you gain new
information and perspective
Act
Defining an EconomicDevelopment Process for Your
Downtown
The conclusion…really!
Consistently watch the marketplace andthe physical aspects of the downtown
by being on the street regularly.
Communicate and develop therelationships with property owners
you will need to succeed.
Defining an EconomicDevelopment Process for Your
Downtown
The conclusion…really!
Keep in mind the dynamic, ever-changingnature of the downtown marketplace and
be willing to carefully adapt and implementplans accordingly.
A comprehensive effort will take time.Change happens one property, one
business, one effective change or smallvictory at a time.
Defining an EconomicDevelopment Process for Your
Downtown
A strong downtown business district is the result of a planned effort!
Assess – Agree – Plan – Act
Defining an EconomicDevelopment Process for Your
Downtown
What would you like to hear more about?
Please take a moment to fill out the survey.
Questions?
Diane Laird, State Coordinator, Delaware Main Street [email protected] Ferrell, Principal Retail Market Answers, LLC [email protected]
Future Training Possibilities:How and Who?