Downtown Revitalization: Defining an Economic Development …€¦ · · 2009-06-05Downtown Revitalization: Defining an Economic Development Process for Your Downtown Delaware League

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


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?


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Physical environment– Streetscape, facades, banners

Local and regional assets– Natural, historical, political

Preserved sense of place


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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


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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


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What needs to come together?


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Using private sector principles

Competitive advantages and disadvantages:public vs. private


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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.


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Today:What and Why

Future:How and Who


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The four-part ED Process:

Assess

Agree

PlanAct


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You can assess first, and then agreeor

you can agree first, and then assessor

you can agree and assess concurrentlybut…


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…you cannot develop effectivestrategies without both

assessing the current situationAND

agreeing on the desired future.


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Step 1: Assess

CBD review

Building & business inventory

Market analysis

Define trade area


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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


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Drive it – The windshield tour

Assess


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Storefront Tour

Assess


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Visit local stores

Assess


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Visit local restaurants

Assess


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Visit local stakeholder offices

• Chamber of Commerce• City Hall

• Economic Development Office• Police Station• Licensing and Inspections

• Fire Hall• Real Estate Brokers

Assess


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Encounters With Other Shoppers

Assess


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Why assess the downtown?

A “snapshot”captures amoment in timeto evaluate thedowntown.

Assess


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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


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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


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Assess


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Market Analysis

Has your town undertaken a marketanalysis?

Are you currently working with it?

What makes a market analysis effective?

Assess


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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


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Market Analysis

Data:

Assess

“Analysis”: “ 10% of shoe stores are located locally; 30 %

are elsewhere in the county; and 10% areoutside of the county.”


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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


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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


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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


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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


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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.


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Trade Area

Assess


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Trade Area

Assess

Why define the trade area?

It represents the area with the greatestpotential to grow the current customer base.


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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


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Assess

Agree


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Step 2: Agree

Building consensus is a requirement ofcommunity-driven growth.

The alternative is adeveloper-driven approach.


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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.


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Agree

Building consensus

Ways to gain public opinion: Surveys Focus Groups – in depth Intercept surveys Stakeholder interviews


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Agree

Building consensus: Stakeholders

Who takes part in stakeholder interviews? Residents Business owners Civic leaders Property Owners Public Officials Realtors Developers


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Agree

Building consensus: Stakeholders

What needs to be addressed in a stakeholderinterview?• Overview (relationships of stakeholders

downtown)• Vision• SWOT• Past and current experiences• Resources


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Agree

Building consensus: Property Owners

Property owners are the “gatekeepers.”

The property owner decides who occupiestheir space.


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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


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Assess

Agree

Plan


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Step 3: Plan

A strategic merchandising plan isdeveloped to affect and manage

the retention and recruitmentaspects of the downtown

business district.


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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


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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


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Plan


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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


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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


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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


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Site Selection

Where do things go?

Plan


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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


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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


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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


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Assess

Agree

PlanAct


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Step 4: Act

The conclusion:

Act on the first three steps.


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Acting on the plan

There must be ateam in place to implement the plan.

Without a team, the plan is limited.

Act


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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


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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


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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


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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


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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.


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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.


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A strong downtown business district is the result of a planned effort!

Assess – Agree – Plan – Act


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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?

Downtown Revitalization: Defining an Economic Development …€¦ · · 2009-06-05Downtown Revitalization: Defining an Economic Development Process for Your Downtown Delaware League

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