Brad Segal, Progressive Urban Management Associates Denver, October 7 Economic Development Council of Colorado New Partnerships for Development
Dec 29, 2015
Brad Segal, Progressive Urban Management AssociatesDenver, October 7
Economic Development Council of Colorado
New Partnerships for Development
Business District Development Framework
Organizing for Each Phase of a District’s Growth Cycle…
Business District Development Framework
Organizing for Each Phase of a District’s Growth Cycle…
New Partnerships for Development
District Lifecycle General Conditions
Stagnant Challenged, with high vacancies, underutilized properties, uninviting public realm and poor regional image
Growing Up and coming, with a sprinkling of new businesses, pioneering new investments and an image of a district in transition
Mature Established, with a strong mix of retail, restaurants and jobs, inviting public realm and strong regional image
Business District Development Framework
Business District Development Framework
New Partnerships for Development
Stagnant Districts
Private Sector Champions?
Several local leaders motivated to change the district, but high levels of apathy and cynicism among stakeholders
Program Priorities
• Attract new investment & stabilize the environment• Create confidence among local stakeholders• Combat regional stigma
Organizational Options
• Appointed commission• Community development corporation• Redevelopment agency• Main Street™ program
Tools & Resources
• Tax increment financing• Local government support, both money and services• Charitable grants• Earned income from development
Successful Strategies: Stagnant Districts
Brush!► Main Street™ program formed in 2001► Façade improvement grants to 12 properties► Streetscape enhancements underway► Program purchased/renovated a building► Spirit of Brush Award► A sustainable champion for the district
Successful Strategies: Stagnant Districts
Brush!► Main Street™ program formed in 2001► Façade improvement grants to 12 properties► Streetscape enhancements underway► Program purchased/renovated a building► Spirit of Brush Award► A sustainable champion for the district
New Partnerships for Development
Community Development Corporation (CDC)
Non-profit community organization with public/private orientation…
Oriented to advance real estate and business development
Provides planning and project development services
Facilitator and problem solver for otherwise challenging projects
Funding Source: Contributions, grants, fees and earned income
Community Development Corporation (CDC)
Non-profit community organization with public/private orientation…
Oriented to advance real estate and business development
Provides planning and project development services
Facilitator and problem solver for otherwise challenging projects
Funding Source: Contributions, grants, fees and earned income
New Partnerships for Development
Successful Strategies: Stagnant Districts
El Cajon CDC, El Cajon, CA► Formed in mid-1990s, also includes BID, Main Street™ program, contract with
local redevelopment agency to manage TIF► Clean & safe, business development, affordable housing and workforce training► Downtown outperforms city in… Property values (181% vs. 75%) Sales (66% vs. 45%) Creation of 600 new jobs
Successful Strategies: Stagnant Districts
El Cajon CDC, El Cajon, CA► Formed in mid-1990s, also includes BID, Main Street™ program, contract with
local redevelopment agency to manage TIF► Clean & safe, business development, affordable housing and workforce training► Downtown outperforms city in… Property values (181% vs. 75%) Sales (66% vs. 45%) Creation of 600 new jobs
New Partnerships for Development
Successful Strategies: Stagnant Districts
Denver Civic Ventures► 501(c)3 CDC formed in 1982► Has evolved over time to address variety of civic needs 1986, 2007 Downtown Plans 1980s Multi-bank loan program 1990s Housing development 1990s Project development 2000s Planning 2010 Public Market?
Successful Strategies: Stagnant Districts
Denver Civic Ventures► 501(c)3 CDC formed in 1982► Has evolved over time to address variety of civic needs 1986, 2007 Downtown Plans 1980s Multi-bank loan program 1990s Housing development 1990s Project development 2000s Planning 2010 Public Market?
New Partnerships for Development
Finance Tool: Community Capital
Mobilizing Local Capital & Resources…
Variety of ownership models – community-owned corporations, cooperatives, investment fund
Local incentive for small business development, marketing Provide both equity and debt
Funding Sources: Individuals, banks, institutions, foundations
Finance Tool: Community Capital
Mobilizing Local Capital & Resources…
Variety of ownership models – community-owned corporations, cooperatives, investment fund
Local incentive for small business development, marketing Provide both equity and debt
Funding Sources: Individuals, banks, institutions, foundations
New Partnerships for Development
Successful Strategies: Stagnant Districts
Evergreen Cooperative, Cleveland, OH► Creating community-owned businesses to serve local institutions► Identified $3 billion in outsourcing by local hospital, university► Cleveland Foundation creating new green businesses to fill gaps► Examples include commercial laundry, solar energy producer► Cooperative ownership structure keeps jobs local, ensures long term
commitment to local growth► Businesses intended to be profitable, loan payments seed new firms
Successful Strategies: Stagnant Districts
Evergreen Cooperative, Cleveland, OH► Creating community-owned businesses to serve local institutions► Identified $3 billion in outsourcing by local hospital, university► Cleveland Foundation creating new green businesses to fill gaps► Examples include commercial laundry, solar energy producer► Cooperative ownership structure keeps jobs local, ensures long term
commitment to local growth► Businesses intended to be profitable, loan payments seed new firms
New Partnerships for Development
Business District Development Framework
Business District Development Framework
New Partnerships for Development
Growing Districts
Private Sector Champions?
Core group of vested property and business owners, with energy from new entrepreneurs. Motivated to explore public/private approaches to improve the district.
Program Priorities
• Attract new businesses & market the area to consumers• Beautify and improve the public realm• Provide meaningful participation for new owners and businesses• Convey a new emerging image
Organizational Options
• Membership organization• Business improvement district• Downtown development authority• Foundation or 501(c)3 subsidiary
Tools & Resources
All of the preceding plus:• Property or business assessments• Revenue generating promotions and special events• Membership dues
Business Improvement Districts (BIDs)
Quasi-public special district governed by ratepayers…
Provides funds to manage, market and maintain the downtown environment -- “CAM” fee for downtown
Self-governed, self-imposed, accountable Need:
1) private sector champions;
2) supportive local government;
3) staff and financial resources;
4) tradition of public/private partnership
Business Improvement Districts (BIDs)
Quasi-public special district governed by ratepayers…
Provides funds to manage, market and maintain the downtown environment -- “CAM” fee for downtown
Self-governed, self-imposed, accountable Need:
1) private sector champions;
2) supportive local government;
3) staff and financial resources;
4) tradition of public/private partnershipNew Partnerships for Development
Business Improvement Districts (BIDs)
Key messages during the Great Recession…
Ability to stabilize & manage the environment Now is the time to strengthen competitive advantages Unified downtown will make us more influential Ability to leverage resources, challenge and lead Accountability Something we can control in an uncertain and changing economy
Business Improvement Districts (BIDs)
Key messages during the Great Recession…
Ability to stabilize & manage the environment Now is the time to strengthen competitive advantages Unified downtown will make us more influential Ability to leverage resources, challenge and lead Accountability Something we can control in an uncertain and changing economy
New Partnerships for Development
Successful Strategies: Growing Districts
Havana Corridor BID► BID formed in 2007► 4.5 mills annual budget of
$325,000► Services include marketing,
economic development, special events & establishing a district identity
Successful Strategies: Growing Districts
Havana Corridor BID► BID formed in 2007► 4.5 mills annual budget of
$325,000► Services include marketing,
economic development, special events & establishing a district identity
New Partnerships for Development
Downtown Development Authorities
Can often combine advantages of TIF & BIDs…
Differs from state to state Most allow TIF and a mill levy Generally must implement a development plan Governance can be more public-sector connected Generally does not have power of eminent domain Now is the time to establish the base year for TIF
Downtown Development Authorities
Can often combine advantages of TIF & BIDs…
Differs from state to state Most allow TIF and a mill levy Generally must implement a development plan Governance can be more public-sector connected Generally does not have power of eminent domain Now is the time to establish the base year for TIF
New Partnerships for Development
Finance Tools: TIF
Basics of tax increment financing (TIF)…
Uses future increases in property and/or sales tax to finance improvements today
Common to bond with TIF Tool for “bricks & mortar” –
infrastructure & buildings Now is the time to establish
a base year
Finance Tools: TIF
Basics of tax increment financing (TIF)…
Uses future increases in property and/or sales tax to finance improvements today
Common to bond with TIF Tool for “bricks & mortar” –
infrastructure & buildings Now is the time to establish
a base year
New Partnerships for Development
Successful Strategies: Growing Districts
Nederland DDA► Formed in 2005 following market
study► Includes 5 mills plus TIF► Just completed nearly $1 million
in sidewalk reconstruction► Provides leadership for downtown
improvements
Successful Strategies: Growing Districts
Nederland DDA► Formed in 2005 following market
study► Includes 5 mills plus TIF► Just completed nearly $1 million
in sidewalk reconstruction► Provides leadership for downtown
improvements
New Partnerships for Development
Successful Strategies: Growing Districts
Colorado Springs DDA► Formed in 2007, provides financial incentives to promote development
via underwriting/partnering on development and rehab► Also has BID, 501(c)3 foundation ► Challenge Grant Program:
Provides matching funds to property and business owners (private and public) for improvements to facades, landscaping, lighting, signage, etc.
Successful Strategies: Growing Districts
Colorado Springs DDA► Formed in 2007, provides financial incentives to promote development
via underwriting/partnering on development and rehab► Also has BID, 501(c)3 foundation ► Challenge Grant Program:
Provides matching funds to property and business owners (private and public) for improvements to facades, landscaping, lighting, signage, etc.
New Partnerships for Development
Business District Development Framework
Business District Development Framework
New Partnerships for Development
Mature Districts
Private Sector Champions?
Experienced core group of vested property and business owners with a history of being organized and participating in public/private partnerships.
Program Priorities
• Retain & grow businesses• Market the area to consumers• Keep organization fresh to keep stakeholders engaged• Strengthen a positive image
Organizational Options
• Entrepreneurial holding company• Parking districts• Events production company• Transportation management organization
Tools & Resources
All of the preceding plus:• Parking revenue• Local improvement bonds• Merchandising the district
Successful Strategies: Mature Districts
Cherry Creek North BID► 16-block retail and restaurant district, 320 independent businesses► Generates approximately $2.3 million in revenue► Passed $18.5 million bond issue to streetscape entire district► BID issued bonds in 2009 (also did $12 million bond issue in 1989)
Successful Strategies: Mature Districts
Cherry Creek North BID► 16-block retail and restaurant district, 320 independent businesses► Generates approximately $2.3 million in revenue► Passed $18.5 million bond issue to streetscape entire district► BID issued bonds in 2009 (also did $12 million bond issue in 1989)
New Partnerships for Development
Successful Strategies: Mature Districts
Downtown Tempe Community, Inc. – Tempe, AZ► Management, marketing of all public, some private parking in downtown
Tempe (8 lots/garages in total)► Contract with the City – 6% of parking revenues, management fee► All parking managed by DTC
part of “Park-It Program” including First Hour Free, validation program
Successful Strategies: Mature Districts
Downtown Tempe Community, Inc. – Tempe, AZ► Management, marketing of all public, some private parking in downtown
Tempe (8 lots/garages in total)► Contract with the City – 6% of parking revenues, management fee► All parking managed by DTC
part of “Park-It Program” including First Hour Free, validation program
New Partnerships for Development
Holding Company Structures: Denver, COHolding Company Structures: Denver, CO
New Partnerships for Development
DOWNTOWN DENVER EVENTS
DOWNTOWN DENVER EVENTS
DENVER CIVIC VENTURES
501(c)(3)
DENVER CIVIC VENTURES
501(c)(3)
DOWNTOWN DENVER
PARTNERSHIP
501(c) (6)
DOWNTOWN DENVER
PARTNERSHIP
501(c) (6) by contract
VisionCommunicationsAdministration
Festivals & Events
DOWNTOWN DENVER, INC.
501(c)(6)
DOWNTOWN DENVER, INC.
501(c)(6)
AdvocacyMarketing
Economic DevelopmentTransportation
HousingSpecial ProjectsTransportation (TMO)
MaintenanceMarketing
Mall Vending
MEMBERSHIPS
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GRANTS, CONTRACTS, SPONSORSHIPS$$
ASSESSMENTS
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BID
(BID)
BID
(BID)
Brad Segal, Progressive Urban Management [email protected] www.pumaworldhq.com
Economic Development Council of Colorado
New Partnerships for Development