1 Downtown Revitalization and Business Assistance Project – 2012/13 PROJECT NARRATIVE 1. Need, goals and objectives Overview The Delaware Economic Development Office (DEDO) seeks a USDA Rural Business Enterprise Grant (RBEG) to increase its reach and impact in the state through the Downtown Revitalization and Business Assistance Project – 2012/13 (DRBAP) by offering business development and related downtown revitalization capacity-building services to existing and emerging entrepreneurs, town representatives, and revitalization staff and volunteers within twelve rural towns in rural Delaware. Need Ten of the twelve towns targeted for this project are located in Kent and Sussex counties, the two counties that exhibit the lowest unemployment rates of the three counties in Delaware: As of February 2012 Sussex County had the state’s highest unadjusted jobless rate, at 8.2 percent, followed by Kent (7.7 percent) and New Castle (7.3 percent). 1 The other two towns targeted for services are located in rural portions of New Castle Delaware. (See Attachment A, Page 15 for map of the state that identifies the twelve communities.) All communities fall under a population of 50,000. The average median household income (MHI) of these twelve communities (combined) is $48,170, which is under the USA MHI of $51,914, and is further under the Delaware MHI of $57,599. 2 Translated into the rural downtown environment, one will often see generally higher rates of vacancy, struggling businesses due to the “down” retail sales climate, and lower rates of investment and property development in areas of higher unemployment. Such is the case in Delaware. Thus, the support and development of programs that will create and enhance environments, or ecosystems, that will support entrepreneurship and foster small business development in rural areas is critical. We believe that the prosperity of Delaware’s rural downtowns where retailers and entrepreneurs can thrive is a key element in supporting and building the economic health of the community, and further, stands to support the economic health and increased quality of life throughout Delaware. It is an opportune time for aggressive measures to build both a downtown environment that is conducive to residents, shoppers, and visitors, and to and build the capacity for success of entrepreneurs in those downtowns. Further, “As the successes become more visible and prove that value-creating entrepreneurship can and does happen anywhere and everywhere, the cultivation of a conducive ecosystem will not be a “nice-to-have” opportunity but a “must-have” necessity. Citizens 1 http://www.bls.gov/ro3/delaus.htm (See ATTACHMENT F) 2 http://quickfacts.census.gov/qfd/states/10000.html
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Downtown Revitalization and Business Assistance Project – 2012/13
PROJECT NARRATIVE
1. Need, goals and objectives
Overview
The Delaware Economic Development Office (DEDO) seeks a USDA Rural Business Enterprise
Grant (RBEG) to increase its reach and impact in the state through the Downtown Revitalization
and Business Assistance Project – 2012/13 (DRBAP) by offering business development and
related downtown revitalization capacity-building services to existing and emerging
entrepreneurs, town representatives, and revitalization staff and volunteers within twelve rural
towns in rural Delaware.
Need Ten of the twelve towns targeted for this project are located in Kent and Sussex counties, the two
counties that exhibit the lowest unemployment rates of the three counties in Delaware: As of
February 2012 Sussex County had the state’s highest unadjusted jobless rate, at 8.2 percent,
followed by Kent (7.7 percent) and New Castle (7.3 percent).1 The other two towns targeted for
services are located in rural portions of New Castle Delaware. (See Attachment A, Page 15 for
map of the state that identifies the twelve communities.) All communities fall under a population
of 50,000. The average median household income (MHI) of these twelve communities
(combined) is $48,170, which is under the USA MHI of $51,914, and is further under the
Delaware MHI of $57,599.2
Translated into the rural downtown environment, one will often see generally higher rates of
vacancy, struggling businesses due to the “down” retail sales climate, and lower rates of
investment and property development in areas of higher unemployment. Such is the case in
Delaware. Thus, the support and development of programs that will create and enhance
environments, or ecosystems, that will support entrepreneurship and foster small business
development in rural areas is critical.
We believe that the prosperity of Delaware’s rural downtowns where retailers and entrepreneurs
can thrive is a key element in supporting and building the economic health of the community,
and further, stands to support the economic health and increased quality of life throughout
Delaware. It is an opportune time for aggressive measures to build both a downtown
environment that is conducive to residents, shoppers, and visitors, and to and build the capacity
for success of entrepreneurs in those downtowns. Further,
“As the successes become more visible and prove that value-creating entrepreneurship
can and does happen anywhere and everywhere, the cultivation of a conducive ecosystem
will not be a “nice-to-have” opportunity but a “must-have” necessity. Citizens
1http://www.bls.gov/ro3/delaus.htm (See ATTACHMENT F)
The project targets twelve communities in rural Delaware. The DEDO has well-established
relationships with representatives of eleven of the twelve targeted communities, and seeks to
engage the one town (Georgetown) as a new Commercial District Affiliate, which will establish
local contacts and engage community stakeholders into a process that will guide local business
development and community revitalization activities. (Attachment A, Page 15)
Through this proposed program of technical assistance, USDA funds will be advancing federal,
state, and local community economic goals by:
1.) Building skills of downtown entrepreneurs at both basic and advanced levels, as well as
assisting emerging/start-ups in launching a business and/or establishing a downtown
presence.
2.) Providing a variety of training opportunities to community stakeholders that are
purposefully involved in the downtown revitalization process for their community. These
include representatives of numerous towns that are proactively and consistently
developing and implementing initiatives for stronger commercial business districts
including those that currently host a local comprehensive revitalization program (I.e.;
designated Main Street towns), and those towns that host a more abbreviated
revitalization strategy (I.e.; Delaware Commercial District Affiliate towns).
Specifically, the activities and technical assistance/training opportunities are proposed, as below:
TRAINING Target Date
SMALL BUSINESS/ENTREPRENEURIAL TRAINING:
New initiative “Pop-ups” incubator concept (training to targeted towns/merchants, engagement of towns/marketing of concept, one-on-one assistance to selected businesses, assistance toward interior decoration – paint, carpet to prepare one space in each town for occupancy; town/property owner provide cost of rent for three months)
Launch July 1, 2012
Kauffman FastTrac Entrepreneurial Training (target 10 entrepreneurs) June/July 2012
Retailer training by national retailing expert (target 50 merchant entrepreneurs) Fall 2012
3 Day eCommerce Training for small business owners (target 10 entrepreneurs) November 2012
1. Target temporary occupancy in six (6) currently vacant business properties, with a
further target of permanent occupancy in three (3) of these properties by project
timeline end.
Other Metrics – Downtown Capacity-Building:
In addition to business- and job-related metrics, we intend to build capacity of
community programs/organizations whose purpose is development of thriving,
“entrepreneurially-friendly” downtowns that provide services, amenities and experiential
opportunities to residents, shoppers, visitors, tourists, etc. Such capacity-building
activities follow the Main Street model, and will include:
1. Providing a variety of training opportunities to representatives of numerous towns
that currently host a local revitalization program (designated Main Street towns),
or towns that are proactively and consistently developing and implementing
initiatives for stronger commercial business districts (Delaware Commercial
District Affiliate towns);
2. Engaging one (1) town (target Georgetown) as new Commercial District Affiliate;
3. Engaging two (2) rural towns in technical services to prepare at least one of them
to successfully launch a local Main Street comprehensive program of downtown
revitalization within fiscal year 2014 (target Millsboro and Seaford); and
4. In order for representatives to initiate local strategies to better their downtown
business, social, and physical environment, provide:
a. Two (2) days of Main Street Four-Point Basic training inviting a
statewide audience, with an anticipated attendance of 35;
b. Two (2) Feature Presentations on Downtown Issues, inviting a statewide
audience, with an anticipated attendance of 50 at each presentation;
c. Registration reimbursement and a travel stipend to 6 (six) recipients from
among the targeted towns who commit to attending the national Main
Streets conference, for both training and networking on a national basis.
While we will target “never-before” attenders, we will strive to engage at
least one active revitalization representative from each of six of the named
towns.
Who will receive the training?
The proposed training will be provided to groups of downtown merchants, as well as
individual entrepreneurs, and to staff/volunteers of said programs, committees, and/or
towns, thereby not only increasing the local knowledge, but ensuring sustainability of the
business development and downtown revitalization concepts/practices once the services are
delivered through this ten-month program of training. While services will be held in the targeted
communities, we anticipate inviting a statewide audience wherever possible. 7
7 In the past, USDA grant-funded services have leveraged an opportunity to invite a statewide audience of
revitalization-minded individuals. For instance, over 800 individuals statewide were able to attend training from the
2008-2011 RCDI-funded activity.
6
Six (6) aspiring/start-up entrepreneurs will launch a downtown “pop-up”, which is a temporary
business in a currently vacant location, with the anticipation of three (3) of them establishing a
permanent business location in a Delaware downtown on/by March 31, 2013. In order to ensure
success of this venture, roughly one third of the requested USDA funds will be used toward this
brand new “pop-up” initiative:
The development of engaging forms of marketing and promotion of the initiative,
such as a promotional site specific video (see http://vimeo.com/22863954);
Assistance with property owner for engagement/securing of space and local match
by community for three months of rent;
One-on-one business owner assistance to ensure successful launch and anticipated
establishment of permanent business beyond the three month timeframe;
Funding toward re-decoration of interior space to prepare for new tenant, with
engagement of volunteers for labor. (Note: Funding will be limited to interior
decoration and will not include exterior renovations of any kind.)
For “pop-up” models, see:
o http://www.preservationnation.org/main-street/main-street-news/story-of-
the-week/2010/pop-up-shops-generate-holiday.html
o http://vimeo.com/22863954
Further, through the proposed project, Downtown Delaware will target and expose ten (10)
“start-up” and/or established Downtown entrepreneurs to entrepreneurial training:
First, the Ewing Kauffman FastTrac New Venture and Growth Venture
programs: These programs are now being offered by only one source in Delaware
(the Delaware Emerging Technology Center, a program of the DEDO)
commenced in October 2011. It has been noted by some that this training is
arguably the best entrepreneurial training in the world.8 (Attachment B, Page 16)
DEDO’s very popular Ecommerce: Sales and Marketing training will target ten
aspiring or existing downtown entrepreneurs, and expose them to the use of
technology in order to reach a target market outside of the state and even globally.
Both of these training opportunities, encompassing approximately another one third of the
requested USDA funding, will offer entrepreneurs’ potential to hone skills and earn higher
profits will provide them a remarkable edge over those who have not been advantaged to receive
such advanced, quality training.
And finally, as designated Delaware Main Street programs or Delaware Commercial District
Affiliates, each of the towns targeted for services in this proposal currently have well-established
programs or Economic Development committees comprised of both public and private
entities/stakeholders that have the capacity to receive training on topics related to downtown
economic development, and through which they are able to engage and assist local businesses
and entrepreneurs. These and other downtown stakeholders that are formally involved in
revitalization activities will receive the remainder of the proposed services, which encompass
roughly the final third of the requested USDA funding and are focused on the Main Street Four
8 “Kauffman FastTrac strives to connect entrepreneurs to the best resources available to start and grow successful
businesses. Kauffman FastTrac program accomplishes this through a series of learning experiences, products, and
services”. For more information, visit http://www.fasttrac.org.
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Point Approach and building a downtown environment that is conducive to entrepreneurs,
shoppers, visitors, and residents. (See ATTACHMENT C, Page 17)
NOTE: See also: “Item #2. Type and number of small businesses to be assisted, jobs created
and retained”.
3. Is project a duplication of existing services?
No. The “pop-up” initiative is NOT a duplication of existing services, but rather is a brand new
initiative for Downtown Delaware. It should be noted, though, that two excellent models will be
used to launch the initiative confidently and successfully.4
While several of the remaining entrepreneurial development training and revitalization technical
services/training opportunities in this proposal have been offered previously (and with USDA
funding through the RCDI grant), the Downtown Delaware (Main Street) annual allocation from
the State legislature is at an all-time low, and new communities and entrepreneurs are being
engaged, thus the requested grant funds will provide the DEDO with opportunity to provide a
combination of basic and advanced services that, without USDA grant funds, the DEDO would
be unable to provide.
Further, it should be noted that while rural areas in Kent and Sussex counties are the primary
target audience, a statewide audience will benefit from much of the training.
4. Is project compatible with state and county planning objectives?
Yes. The Main Street model is utilized nationally and internationally and is widely considered a
“best practice” in downtown revitalization. The DEDO’s program of downtown revitalization
follows the National Trust Main Street Center (NTMSC) methodology, a proven model for
downtown/community economic development that is particularly effective in rural communities.
This process simultaneously addresses the four points of organization, design, economic
development, and promotion. (See Attachment B)
The Main Street model is designed to build public and private philosophical and financial
support, thereby drawing upon local opportunities and building community self-reliance
that leads to economic development of the community’s commercial district. Local
designated Delaware Main Street programs are grassroots-driven, comprised of public and
private partners, and are led by one paid manager. Delaware Commercial District Affiliates
reflect the Main Street model, but are a smaller scale, with more limited resources, and are
comprised of a committee that is generally volunteer-driven by local stakeholders, with formal
representation by at least one representative of the municipality.
Currently, there are eight designated Main Street communities in Delaware, with several others
aspiring to that status. Nine “Commercial District Affiliates” are in the “pipeline” for
consideration for future designation. Delaware’s Main Street programs have enjoyed longevity of
as much as 15 years and rarely disintegrate once they commence, thus sustainability of purpose
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is implied with adherence to the Main Street model. Training by staff of the NTMSC and its
affiliated consultants ensures that practices taught are current, reasonable, and highly practical
for use with downtown professionals and lay persons (grassroots, volunteers) alike.
5. Demographic information to include population, median household income, and
unemployment
The project/services will be targeted within the twelve Delaware communities exhibited in the
table below.
NOTES regarding information in table below:
All communities fall under a population of 50,000.
The average median household income (MHI) of these twelve communities (combined)
is $48,170, which is under the USA MHI of $51,914, and is further under the Delaware
MHI of $57,599.
The average MHI of the ten communities (combined) in Kent and Sussex counties alone,
is $45,731.
The $60,354 MHI of the two communities (combined) in New Castle county hovers just
above the Delaware MHI of $57,599.
9
SOURCES: Population: http://quickfacts.census.gov/qfd/states/10/10001.html Unemployment Rate: http://www.bls.gov/ro3/delaus.htm (See ATTACHMENT F)
Median Household Income: http://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ACS_10_5YR_B19013&prodType=table and http://quickfacts.census.gov/qfd/states/10000.html
6. Evidence of leveraged funds and/or in-kind contributions
Because this training is so vital to our state, and because it is being offered at a critical time
(“down” economy, record-high unemployment), it is important to note that the DEDO has
committed to provide 42% of the funding required to deliver these services, which are critical
technical services (entrepreneurial and retailer training, Ecommerce, group retailer training), new
initiatives (“pop-up” project), and opportunities for a more expanded slate of training and
breadth of services that DEDO would NOT be able to provide without USDA assistance.
USDA’s proposed assistance would account for 58% of the total project budget.
Further, while the targeted “recipient” towns have human capacity and desire to receive these
services, they do not have funding to pay for them, and therefore would not be able to
Status Town County Population
Unemployment Rate
Median HH Income
Designated Main Street Delaware City
New Castle 1,695
7.3
$53,229
Aspiring Main Street Designation Delmar
Sussex 1,579
8.2
$34,740
Designated Main Street Dover
Kent 36,047
7.7
$46,195
Aspiring Main Street Designation Georgetown
Sussex 5,113
8.2
$42,905
Aspiring Main Street Designation Harrington
Kent 3364
7.7
$44,974
Designated Main Street Milford Kent/Sussex 8,103
7.7/8.2
$44,982
Aspiring Main Street Designation Millsboro
Sussex 2,694
8.2
$46,045
Aspiring Main Street Designation Milton
Sussex 2,017
8.2
$41,076
Designated Main Street Middletown New Castle 18,871
independently undertake them without the USDA RBEG assistance, which is further enhanced
by the DEDO funding.
To summarize, the DEDO has committed to providing $12,200 toward the requested $16,800
from USDA (for a project total of $29,000), which represents an approximate 2:3 match.
* IMPORTANT NOTE:
If USDA RBEG funds are available in excess of what is requested within this application,
DEDO would be willing to engage 1 additional town for the “pop-up” initiative for every
$2,000 USDA RBEG funding (beyond above requested amount), in which would be matched
by DEDO funds of $1,000, for up to three towns.
Thus, DEDO could engage up to three additional towns in the pop-up initiative, for an
additional $6,000 in RBEG funds, which would be matched by a total of $3,000 in DEDO
funds. Thus six towns would be engaged in the pop-up initiative.
7. Project Budget to show detailed line item breakdown and all sources of funding
TRAINING Target Date DEDO Funding match
RBEG
Funding
SMALL BUSINESS/ENTREPRENEURIALTRAINING:
* New initiative “Pop-ups” incubator concept (concept training to targeted towns, merchant training, engagement of three towns/marketing of concept, one-on-one assistance to selected businesses, assistance toward interior decoration – paint, carpet to prepare one space in each town for occupancy; town/property owner would share cost of rent for three months)
Launch July 1, 2012
3000 6000
Kauffman FastTrac Entrepreneurial Training June/July 2012 500
Retailer training by national retailing expert Fall 2012 2000 2100
3 Day eCommerce Training for small business owners November 2012 2000 2000