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How to implement the Economic Restructuring Point of Main Street according to JD

How to implement the Economic Restructuring Point of Main Street according to JD

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  • Steps in ER: I Real Estate Development 2 Business improvement and expansion 3 Recruiting new uses such as retail, government, services 4 Share information with consent of board and in cooperation with the organization committee
  • From a publication entitled “Real Estate and Retailing” which is available in our library.
  • Steps in ER: I Real Estate Development 2 Business improvement and expansion 3 Recruiting new uses such as retail, government, services 4 Share information with consent of board and in cooperation with the organization committee
  • Steps in ER: I Real Estate Development 2 Business improvement and expansion 3 Recruiting new uses such as retail, government, services 4 Share information with consent of board and in cooperation with the organization committee
  • Steps in ER: I Real Estate Development 2 Business improvement and expansion 3 Recruiting new uses such as retail, government, services 4 Share information with consent of board and in cooperation with the organization committee
  • Specific store categories NAICS 5 digit Not product type Quantitative demand supply Qualitative
  • Small Scale Industry: publishing, telecommunications, assembly operations Small Scale: Matching fund grant pool Low interest revolving loan fund
  • Small Scale Industry: publishing, telecommunications, assembly operations Small Scale: Matching fund grant pool Low interest revolving loan fund
  • Small Scale Industry: publishing, telecommunications, assembly operations Small Scale: Matching fund grant pool Low interest revolving loan fund
  • Small Scale Industry: publishing, telecommunications, assembly operations Small Scale: Matching fund grant pool Low interest revolving loan fund
  • Small Scale Industry: publishing, telecommunications, assembly operations Small Scale: Matching fund grant pool Low interest revolving loan fund
  • Small Scale Industry: publishing, telecommunications, assembly operations Small Scale: Matching fund grant pool Low interest revolving loan fund
  • Small Scale Industry: publishing, telecommunications, assembly operations Small Scale: Matching fund grant pool Low interest revolving loan fund
  • Small Scale Industry: publishing, telecommunications, assembly operations Small Scale: Matching fund grant pool Low interest revolving loan fund
  • Small Scale Industry: publishing, telecommunications, assembly operations Small Scale: Matching fund grant pool Low interest revolving loan fund

Transcript

  • 1. Economic Restructuring Main Street Volunteer Training
  • 2. The Bureau of Downtown Development administers an economic development program targeting Wisconsin’s historic commercial districts. Bureau staff provides technical support and training to Wisconsin communities that have expressed a grass roots commitment to revitalizing their traditional business districts using a comprehensive strategy based on historic preservation. Rationale.
  • 3. Main Street Four-point Approach
    • Organization -getting everyone working toward the same goal
    • Design -getting downtown into top physical shape
    • Promotion -getting everyone to see downtown as the center of commerce, culture, and community life
    • Economic Restructuring (ER) -getting downtown businesses busier
  • 4. ER Committee - What It Does
    • Learn about the district’s current economic condition and identify opportunities for Market growth
    • Strengthen existing businesses and recruiting new ones
    • Finding new economic uses for traditional Main Street buildings
    • Develop financial incentives and capital for building rehabilitation and business development; and
    • Monitor and report the economic performance of the district
    Objectives
  • 5. Market Demand & ER Demand for Goods & Services Sales Rents Value Source: Hyett-Palma, Inc. & The Real Estate Services Group
  • 6. ER Committee - Timeline
    • Basic Understanding (0-6 Months)
      • Learning about the district’s current economic condition
      • Conferring with area business leaders
      • Evaluating existing businesses
      • Researching past studies and area trends
    The ER Committee
  • 7. ER Committee - Timeline
    • Market Analysis (6-18 Months)
      • Retention activities
      • Passive recruitment (responding to business inquiries)
    • Downtown Planning (18-36 Months)
      • Heavy growth in private reinvestment
      • Public improvements
    The ER Committee
  • 8. ER Committee - Timeline
    • Marketing Plan (36-48 Months)
      • Marketing strengths of program’s efforts
      • Marketing/branding downtown
      • Active targeted recruitment
    The ER Committee
  • 9. Strengthen existing businesses
  • 10. Retention Before Recruitment
    • The majority of a community's job growth or loss stems from the success or failure of its existing businesses. It is more efficient to retain than to recruit. Because of this, it is important for a community to "keep a finger on the pulse" of its existing business base.
    Strengthen existing businesses
  • 11. Goal
    • To Keep Existing Businesses in the Community and to Expand Current Businesses
      • Through an attentive strategy to local businesses, you can retain your existing business base, while facilitating and encouraging its growth.
    Strengthen existing businesses
  • 12. Top Priorities of Small Business Owners
    • Generating more sales
    • Better marketing
    • Understanding the financial condition of the business
    • Starting a retirement plan
    • Setting personal & business goals
    Source: INC Magazine Strengthen existing businesses
  • 13. Major Concerns of Small Business Owners
    • Obtaining needed capital
    • Finding & managing people
    • Managing the firm’s growth
    • Keeping up with competitors
    • Keeping up with technology
    Source: INC. Magazine Strengthen existing businesses
  • 14.
    • Prepare a business plan.
    • Build a solid relationship with your banker.
    • Watch your cash flow.
    • Look in unexpected places for competition.
    • Talk to your customers.
    • Develop a good relationship with employees.
    • Delegate responsibility.
    • Cultivate business contacts.
    Eight Ways to Improve Your Company’s Profit Source: INC Magazine Strengthen existing businesses
  • 15. Existing Businesses
    • Four (4) areas a business must research before deciding to invest additional funds on product, and or advertising. The four (4) areas are:
      • Your competition
      • Your market environment
      • Your customers
      • Your business
    • A Market Analysis may answer three (3) of the above four (4) business vitals!
    Strengthen existing businesses
  • 16. 10 steps to effective business retention
    • Know the market.
    • Create a market positioning statement for the district.
    • Develop market-driven strategies that direct retention efforts.
    • Identify key businesses.
    • Identify & offer needed business assistance.
    Strengthen existing businesses
  • 17.
    • Plan for effective business promotion.
    • Help businesses identify & develop opportunities for growth & expansion.
    • Learn to recognize early warning signals.
    • Plan for business transition.
    • Support existing businesses personally.
    Strengthen existing businesses 10 steps to effective business retention
  • 18. Identify key businesses.
    • Key businesses are different for each market strategy. They may be:
      • Anchors, traffic generators
      • Long-standing businesses
      • Creative, model businesses
      • Large employers
      • Newly recruited businesses with growth potential
      • Businesses that represent cultural or ethnic diversity
    Strengthen existing businesses
  • 19. Identify key businesses.
    • For these businesses, you will want to provide:
      • More formal retention visits
      • More frequent contact
      • Greater involvement in projects & activities
      • Greater overall attention
    Strengthen existing businesses
  • 20. Listen & Share (communicate)
    • Business Owner Survey
    • Business Visitation Program
    • Block Captain Program
    • Ambassador Program
    • Downtown Manager Visits
    • Mailings, Newsletters
    • Gatherings
      • Breakfast Meetings
      • Luncheon Speakers
      • Business After Hours
    • Open and Staffed Office W/library
    • Demonstrate a pro-business attitude !
    Strengthen existing businesses
  • 21. What to Share
    • Documentation on the downtown economy
    • New market opportunities
    • Upcoming events
    • Available resources (people and publications)
    • Tips of the trade
    Strengthen existing businesses
  • 22. Help increase profits
    • Identify new market opportunities
      • new sales to existing customers
      • new customers
    • Increase efficiency
      • New skills and technology
    Strengthen existing businesses
  • 23. Help increase profits
    • Reduce costs
        • Rent
        • Personnel costs
        • Utility costs
        • Product costs
        • Shipping/transportation costs
        • Health and other insurance costs
        • Identify supplemental income
    Strengthen existing businesses
  • 24.
    • Attracting more customers from same market niche
    • Building repeat customer base
    • Motivating customers to spend more money
    • Identifying new markets for existing product lines
    • Adding new product lines to capture wider market range
    Strengthen existing businesses Help businesses identify & develop opportunities for growth & expansion
  • 25.
    • Identifying & adapting to business & market trends
    • Repositioning by changing image & product mix to capture new markets
    • Expanding existing space or relocating within district
    • Opening complementary new business
    Strengthen existing businesses Help businesses identify & develop opportunities for growth & expansion
  • 26. New Skills - Workshops
      • Business planning
      • Financial management (accounting & bookkeeping)
      • Inventory management
      • Advertising/marketing
    Strengthen existing businesses
  • 27. New Skills - Workshops
      • Employee training/hiring
      • Customer service
      • Hospitality training
      • Window displays/interior store design
      • Business market analysis
      • Internet/E-Commerce
    Strengthen existing businesses
  • 28. Help Reduce Business Disincentives
    • Develop projects to reduce local business disincentives such as the following:
      • Insufficient financing
      • Shop lifting/theft
      • Vandalism
      • Inadequate utilities
      • Limited access to market vendor products
    Strengthen existing businesses
  • 29. Help Reduce Business Disincentives continued
      • Insufficient parking
      • Owner/tenant conflict
      • Negative image of downtown
      • Restrictive regulations
      • Poor building conditions
    Strengthen existing businesses
  • 30. Provide Business Incentives
    • Develop projects to provide business incentives such as the following:
        • Boilerplate lease agreements or rent subsidies
        • Landlord/tenant arbitration service
        • Landlord/tenant referral network
        • Historic preservation district (tax credits)
        • Design assistance (interior and exterior)
        • Façade and sign grants
        • Loan packaging or low interest loans
    Strengthen existing businesses
  • 31. Provide Business Incentives continued
    • Develop projects to provide business incentives such as the following:
      • Business planning service
      • Buying groups (products and insurance)
      • Sister store mentors
      • Business plan contest - award grant/loan
      • Resource library
      • Business assistance - Main Street Small Business Specialist, SCORE, SBDC, VoTech
    Strengthen existing businesses
  • 32. Provide Business Incentives marketing
    • Develop projects to provide business incentives such as the following:
      • Image development and promotions
      • Special events
      • Retail events
      • Cooperative advertising
      • Downtown marketing materials
        • Brochures, maps, directories, etc.
      • Web site
      • Downtown Brand/Niche
    Strengthen existing businesses
  • 33. Develop Retention Measurement Outcomes
    • # of business visits (weekly/monthly/annually)
    • # of referrals
    • # of successfully closed referrals
    • % of repeat business
    • # of success stories
    • Cost per business visit
    • Cost per job created or retained
    Strengthen existing businesses
  • 34. Case Study Lake Mills Business Survey Strengthen Existing Businesses
  • 35. Assignment
    • Read pages 1 & 2
    • Identify three (3) retention activities
    • Concentrate on strengthening existing businesses
    Strengthen existing businesses
  • 36. Identify opportunities for market growth
  • 37. Weigh Supply Against Demand
    • Evaluate Retail Opportunities
    • Evaluate Service Business Opportunities
    • Evaluate Restaurant Opportunities
    • Evaluate Entertainment and Theater Opportunities
    • Evaluate Residential Opportunities
    • Evaluate Office Market Opportunities
    • Evaluate Lodging Opportunities
    Opportunities for market growth
  • 38. Weigh supply against demand Retail Supply (Square Feet) Retail Demand (Square Feet) Retail Mix Analysis Survey and Focus Group Research Trade Area Demographic and Lifestyle Analysis Competitiveness of Existing Trade Area Stores Assessment of Retail Opportunities Analysis of Non-Local Market Segments (Tourists, Workers) Consumer Behavior in Store Category Competitiveness of Existing Regional Stores
  • 39. Draw Conclusions and Develop Recommendations
    • General Conclusions
    • Niche Recommendations
    • Clustering Recommendations
      • Anchor Analysis
    • Mixed-Use Recommendations
    • Putting your Market Analysis to Work
      • Catalyst Analysis
    Opportunities for market growth
  • 40. Review Market Analysis
    • Learning about the district’s current economic condition + identifying opportunities for market growth = Market Analysis
        • Retail Market Analysis is a systematic evaluation of past trends, current conditions and future expectations about particular types of business and/or real estate activity at particular location(s) within a defined trade area.
    Opportunities for market growth
  • 41. Market Analysis is:
    • An estimate of the district’s market impact and influence
    • A description of top customer groups and spending habits
    • An educated guess about what the economic climate might be like in the future, and ways in which the program can impact future economic growth in the district
    Opportunities for market growth
  • 42. Market Analysis is Not:
    • An accurate science
    • A detailed blueprint for activity
    Opportunities for market growth
  • 43. What do you do with the information? Opportunities for market growth MARKET ANALYSIS PROMOTION BUSINESS RETENTION & RECRUITMENT PROPERTY DEVELOPMENT
  • 44. Case Study Market Report College Towns Identify Opportunities for growth
  • 45. Assignment
    • Look at the one (1) page market report
    • Compare the three (3) communities
    • Identify three (3) markets that Whitewater should pursue to capture student spending
    Opportunities for market growth
  • 46. Recruit Complementary Businesses
  • 47. The Recruitment Team
    • Bankers
    • Realtors
    • City Staff or Elected Officials
    • Economic Development Staff
    • Academic Staff
    • Enthusiastic Business Owners (Competitors?)
    Recruit complementary businesses
  • 48. Roles of the Team
    • Develop a wish list
    • Generate leads
    • Cluster/place businesses
    • Check business opportunities
    • Check business preparedness
    Recruit complementary businesses
  • 49. Developing Your Wish List
    • Market Position Statement
    • Vision Statement
    • Market Analysis
      • Retail mix analysis
      • Population required to support stores
      • Surveys
      • Recruitment will target businesses that people want and that the market will support (supply and demand)
    Recruit complementary businesses
  • 50. Create a market positioning statement for the district.
    • An effective positioning statement is driven by the district’s
        • Vision statement
        • Market analysis
        • Competitive edge
    • An effective marketing positioning statement identifies
        • Realistic opportunities
        • Primary markets & trade areas
        • Desired business mix
    Recruit complementary businesses
  • 51. What’s the competitive edge . . .
    • For big box, chains & discounters?
    • Price
    • Selection
    • Marketing budgets
    • Consistency
    • Convenience
    • For the commercial district?
    • Unique environment
    • Unique products
    • Product knowledge
    • Service
    Recruit complementary businesses
  • 52. Retail niches & trends attractive to tourists & visitors . . . as well as local markets
    • Arts & crafts
    • Recreation products
    • Specialty foods & beverages
    • Wineries
    • Unique collectibles
    • Heritage products
    • Ethnic products
    • “ Boutique” shops inside other businesses
    • “ Companion” shops
    • Museum-type shops on Main Street
    • Retail shop as “entertainment”
    • “ Outdoor” retail
    • Product “trails”
    Recruit complementary businesses
  • 53. Generating Your Leads
    • Expansion of existing businesses
    • Community visits
    • Trade associations, trade shows
    • Sales representatives
    • Home businesses
    • Store managers
    • Entrepreneur workshops
    • Retail Lease Trac
    Recruit complementary businesses
  • 54. Clustering/placement of Businesses
    • Traffic generators
    • Compatible cluster - unrelated products
      • Demographic clusters- age, income, lifestyle
    • Complementary clusters - related products
      • FIRE - finance, insurance, real estate
    • Competitive clusters - same products
      • Comparison shopping - clothing, jewelry, restaurants
    • Convenience clusters - convenience products
      • Neighborhood shopping - gas, food, drugs
    Recruit complementary businesses
  • 55. Business Opportunities Checklist
    • Appropriate available space
    • Complements existing businesses
    • Serves target customer group
    • Fills gap in the business mix
    • Complements existing business cluster
    • Identified in consumer survey
    • Identified in business owner survey
    • Gap identified in supply/demand analysis
    • Fits with Market Position Statement
    Recruit complementary businesses
  • 56. Business Preparedness Checklist
    • Previous business ownership
    • Business plan completed
    • Market research completed
    • Cash Flow projections available
    • Financial assistance requested
    • Personal investment
    • Relationship with banker, CPA, etc.
    Recruit complementary businesses
  • 57. Develop recruitment marketing materials for district & property owners Recruit complementary businesses
  • 58. Case Study Lake Mills Business Owner Survey Recruit Complementary Business
  • 59. Assignment
    • Skim the business owner survey
    • Identify one (1) complementary business opportunity as identified by area businesses
    Recruit complementary businesses
  • 60. Find new economic uses for traditional Main Street buildings
  • 61. Concepts
    • First and foremost Main Street must create real estate and economic value before revitalization occurs !
    • Development is : the series of steps that must take place to take an idea to completion!
    • Four (4) forces of value:
      • Physical
      • Economic
      • Social and
      • Political
    Find New Uses for Old Buildings
  • 62. Why it doesn’t just happen?
    • No financing is available
    • Financing is available but at terms that make the project financially unfeasible
    • There is a high degree of actual risk
    • The necessary property can’t be acquired
    Find New Uses for Old Buildings
  • 63. Why it doesn’t just happen? continued
    • The scale is to big or to small to interest qualified developers
    • The perceived risk exceeds the perceived reward
    • The public benefits significantly, but those public benefit costs exceed any returns to the developer
    • The project is not revenue producing
    Find New Uses for Old Buildings
  • 64. Why it doesn’t just happen? continued
    • General area economic conditions are discouraging for development
    • High transaction costs associated with the development
    • Other investments provide more attractive returns
    • The cost of the project is greater than the end value of the development
    Find New Uses for Old Buildings
  • 65. When might the public get involved?
    • Private sector can’t act
    • Private sector won’t act
    • No influence to create character, quality, use, scale, or appropriate area development
    • The development is an extension of public purpose or significant public benefit will be accrued
    Find New Uses for Old Buildings
  • 66. When might the public get involved?
    • The project serves as a catalyst
    • Non profit or tax exempt status serves as a conduit for public or foundation money
    • Major infrastructure is required
    • Condemnation is necessary?
    Find New Uses for Old Buildings
  • 67. Projects
    • Understand the income productivity of rehabilitated real estate vs. deteriorated real estate:
      • i.e. area rent rates per square foot and relay findings to Design committee and market
    • Identify property-driven development approach opportunities:
      • A building or site that seems appropriate for development or redevelopment
    • Identify need/use/idea driven development approach opportunities:
      • Need stemming from social or economic need rather than location
    Find New Uses for Old Buildings
  • 68. Projects
    • Understand who owns these properties and the following:
      • Is it for sale or lease?
      • What are the terms
      • How big is the property?
      • Taxes
      • Encumbrances
      • Impediments to rehabilitate, develop?
    • Develop Upper Floor Housing
    • Develop Small-scale Industry (i.e. recruit home-based cottage industries)
    • Develop Upper Floor Offices
    • Explore Entertainment and Civic Uses
    Find New Uses for Old Buildings
  • 69. Final Concepts
    • Develop a team that has economic and non economic benefit needs
    • Develop measurable goals, outcomes, and social benefit recognition
    • Develop a system of cooperation to achieve revitalization.
    • The team can influence, but not control the ultimate out come
    • If total control of the project is the goal of this committee, then private sector resources will be minimalized
    Find New Uses for Old Buildings
  • 70. Case Study Adaptive Reuse Feasibility Find new economic uses for traditional Main Street Buildings
  • 71. Assignment
    • Review the three (3) case studies:
      • Main Street Station Public Market-Viroqua
      • Hotel Hilton/Turtle Creek Bookstore-Beloit
      • The Lee Building-De Pere
    • You case study is the Sheboygan Falls Tannery Building
    • Use these concepts to develop the following:
      • Is this a property driven development, or
      • A need/use/idea driven development
      • Provide a simple use concept for the property
  • 72. Develop financial incentives and capital for building rehabilitations and business development
  • 73. Financial Incentives Develop Financial Incentives
  • 74. For What?
    • Small-scale Building Improvements
    • Major Building Rehabilitation
    • Business Expansions
    • Business Planning
    Develop Financial Incentives
  • 75. Projects
    • Matching Grants (i.e. façade and sign)
    • Low-interest Revolving Loan Funds
    • Rent Assistance
    • Free or Below Cost Land
    • Investment Tax Credits
    • Enterprise Zones
    • Specialty Training Grants to keep business up to date in their business sector
    Develop Financial Incentives
  • 76. Case Study Lake Mills Business Survey Develop Financial Incentives
  • 77. Assignment
    • Skim the business survey again
    • Identify one (1) incentive you would recommend
    • Concentrate on incentives that businesses said they want
    Develop Financial Incentives
  • 78. Monitor Economic Performance
  • 79. Projects
    • Collect base-line data
    • Record information on changes
    • Measure annual performance
    • Report annual performance
    Monitor Economic Performance
  • 80. Returns from MARSHFIELD’S program Cumulative for 10 years $14,562,854 106 485 10 $13,586,554 98 455 9 $13,071,954 88 411 8 $8,513,324 75 330 7 $7,991,524 69 306 6 $3,694,562 61 284 5 $2,933,205 49 246 4 $2,343,583 42 147 3 $1,377,977 27 53 2 $371,800 16 32 1 Physical Improvements Businesses Jobs Year
  • 81. Annual Report
    • Will your Main Street Programs produce an annual report?
    • Will you be proud of your program’s annual report?
    Waukegon Downtown Association 2001 Annual Report
  • 82. “ Absolute must” list
    • Logo
    • Date
    • Map
    • Four Point Approach
    • Mission
    • Accomplishments
    • Reinvestment Stats
    • Return on Investment (ROI)
    • Testimonials
    • Awards
    • Market Profile
    • Downtown Profile
    • Financial Report
    • Directory - board(s), staff, chairs
    • Contact information
  • 83. The Economic Restructuring (ER) Committee
  • 84. Who Serves on the ER Committee - The Team Attorney Realtor Manager Banker Insurance Agent Local Executives City Official Downtown Retailer Accountant Downtown/ Historic Commercial District
  • 85. Who Doesn’t Serve the ER Committee
    • The Latecomer
    • The Early leaver
    • The Broken record
    • The Drop-out
    • The Gossiper
    • The Know-It-All
    • The Doubting Thomas
    The ER Committee
  • 86. ER Committee Roles
    • Committee Volunteers
      • to plan and implement projects
    • Committee Chair
      • to recruit members, to run meetings and to resolve conflict
    • Staff
      • to assist, advise and provide information
    • Board
      • to set policy and approve work plan and budget
    The ER Committee
  • 87. Work Planning putting it all together The ER Committee
  • 88. Keys to ER Success
    • Incremental
    • Constant, build a culture of success
    • Wide volunteer support
    • Community driven
    • Visible
    • Updated and checked from a plan (milestones)
    • Get people out of their cars
    • Create a 24-Hour district
    • Follow government establish rules
    • Creative risk taking political leadership
    • Public/Private sector partnership
    • Use all 4 points and cross pollinate ideas/information
    The ER Committee
  • 89. Summary
    • Some Final Truths About Economic Restructuring --
    • ER can be difficult
    • ER volunteers will enjoy the numbers
    • Every district is unique
    • ER deals with independent business and building owners which can be a challenge. Therefore, local stakeholders must advocate it’s ER position. This will allow the district to better control, understand, and gain from it’s Market Driven Destiny
    The ER Committee
  • 90. For more information
    • Contact information
    • JD Milburn
    • Small Business Specialist Wisconsin Main Street Bureau of Downtown Development Wisconsin Department of Commerce 201 W. Washington Ave. P.O. Box 7970 Madison, WI 53707-7970 (608)-267-2252 (608)-264-7834(Fax) [email_address]
    • Wisconsin Department of Commerce
    • http://commerce.wi.gov
    • Wisconsin Main Street Program
    • http://commerce.wi.gov/cd/CD-bdd-main.html
    • UWEX Center for Community Economic Development Downtown & Business District Market Analysis web site
      • http://www.uwex.edu/ces/cced/dma/
    The ER Committee