7thAnnual Tennessee Basic EconomicDevelopment CourseReal Estate Developmentand Reuse – Part I:DOWNTOWNDOWNTOWNREVITALIZATIONREVITALIZATIONPresented By: Todd Morgan
People ages 65 and older will be the fastestgrowing group in the U.S. through 2050.They are downsizing, want to walk to places,experience arts and culture and use publictransportation.Urban Land InstituteHousing in America – The Baby Boomers turn 65October 2012
People ages 17 – 34, the “Millennials”, plan to pickwhere they live first and choose their jobs second.They are primarily renters, want cool, walkablecommunities and enjoy amenities like Wi-Fi in commonareas, dog parks and outdoor “living rooms”.Urban Land InstituteHousing in America – The Baby Boomers turn 65October 2012
Cities need to attract talented, creative workers bycreating places where these people want to live.Quality of place…dynamic experiences…REALbuildings, REAL people, REAL historyRichard FloridaThe Rise of the Creative Class
The … most important factors that create emotional bondsbetween people and their community [are] not jobs and theeconomy, but rather “physical beauty, opportunities forsocializing and a city’s openness to all people.” …communities with the highest levels of attachment also hadthe highest rates of gross domestic product growth and thestrongest economies.
When it comes to 21st century economicdevelopment, a key concept is communitydifferentiation. If you can’t differentiate yourcommunity from any other, you have nocompetitive advantage.Edward T. McMahonUrbanLand 4.4.12
The unique characteristics of place maybe the only truly defensible source ofcompetitive advantage for regions.Joe CortrightCity Vitals
National Trust for Historic PreservationNational Trust for Historic PreservationMain Street Pilot Project:Main Street Pilot Project:Galesburg, Ill.; Madison, IN; Hot Springs, SDGalesburg, Ill.; Madison, IN; Hot Springs, SD Identified the problemsIdentified the problems Developed strategies to reverse theDeveloped strategies to reverse themovement away from downtowns;movement away from downtowns;interrupt the cycle of disinvestmentinterrupt the cycle of disinvestment Goal to restore downtown as theGoal to restore downtown as the“heart and soul” of the community“heart and soul” of the community www.MainStreet.orgwww.MainStreet.org19771977
An organized and common-sense way to address theAn organized and common-sense way to address thevariety of issues that face traditional business districts.variety of issues that face traditional business districts.Main Street ProgramMain Street Program™ Economic development within the context of historicEconomic development within the context of historicpreservation developing new ways appropriate to thepreservation developing new ways appropriate to thecurrent marketplace.current marketplace.
DesignDesignFour Point ApproachFour Point Approach™EconomicEconomicRestructuringRestructuringOrganizationOrganization PromotionPromotion
DesignDesignFour Point ApproachFour Point Approach™SignageSignageStreetscapeStreetscapeCharacter PreservationCharacter PreservationBuilding InventoryBuilding InventoryCleanlinessCleanlinessLandscapingLandscapingWay-findingWay-findingStorefronts/DisplaysStorefronts/Displays
Four Point ApproachFour Point Approach™EconomicEconomicRestructuringRestructuringBusiness InventoryBusiness InventoryMarket AnalysisMarket AnalysisIncentivesIncentivesFinancingFinancingSmall BusinessSmall BusinessRetentionRetentionRecruitmentRecruitmentStabilizationStabilization
Four Point ApproachFour Point Approach™PromotionPromotionImage MarketingImage MarketingSpecial EventsSpecial EventsRetail PromotionsRetail PromotionsPublicationsPublicationsMedia RelationsMedia RelationsAwardsAwardsRibbon-CuttingsRibbon-CuttingsWebsiteWebsite
Four Point ApproachFour Point Approach™OrganizationOrganizationManagementManagementVolunteersVolunteersPartnershipsPartnershipsStatisticsStatisticsMembershipMembershipFundingFundingGrantsGrantsStrategiesStrategies
Four Point ApproachFour Point Approach™Leads to Success! Design The commercial district is in top physicalshape – attractive, clean, safe Economic Diverse business climate with mix ofRestructuring uses; market is well understood Promotion The districts unique characteristicsand assets are utilized – good image,high foot-traffic, range of activities Organization Community is in consensus and workingtogether toward a common goal; broad-based support for downtown
The Eight PrinciplesThe Eight PrinciplesThat set the Main Street Approach apart:That set the Main Street Approach apart: Comprehensive – No single focus Incremental – 1,000 small steps Self-help – Local leadership Partnership – Public/Private Identifying and Capitalizing on Existing Assets Quality – Not quantity Change – In attitudes and practice Implementation – Visible results
2012 Reinvestment2012 ReinvestmentPublic/Private Investment DowntownPublic/Private Investment Downtown $55.7 Billion$55.7 BillionNet Gain in BusinessesNet Gain in Businesses 109,664109,664Net Gain in JobsNet Gain in Jobs 473,439473,439Building RehabilitationsBuilding Rehabilitations 236,201236,201Reinvestment Ratio: $18 : $1Reinvestment Ratio: $18 : $1
Levels of Main StreetLevels of Main StreetNationalNational The National Main Street Center, a program ofThe National Main Street Center, a program ofthe National Trust for Historic Preservation,the National Trust for Historic Preservation,sets standards for national accreditation andsets standards for national accreditation andserves as a resource for over 2,200 programs.serves as a resource for over 2,200 programs.StateState State coordinating partners monitor localState coordinating partners monitor localprograms, provide technical assistance andprograms, provide technical assistance andtraining, and encourage downtowntraining, and encourage downtownrevitalization strategies.revitalization strategies.LocalLocal Has an organization devoted to downtownHas an organization devoted to downtownmanagement with staff and meets nationalmanagement with staff and meets nationalaccreditationaccreditation standards annually.standards annually.
Local Main Street ProgramsLocal Main Street Programs Broad-based community support Relevant mission and vision statements Comprehensive work plan Historic preservation ethic Active board and committees Operating budget Professional staff Program of training for staff/volunteers Report key statistics Member of National Main Street Center
Downtown Revitalization in TNDowntown Revitalization in TN
Bristol JacksonCleveland Leiper’s ForkCollierville KingsportColumbia LawrenceburgCookeville McMinnvilleDandridge MorristownDayton MurfreesboroDyersburg RogersvilleFayetteville TiptonvilleFranklin SavannahGallatin Union CityGreeneville Ripley2012 Tennessee Main Streets2012 Tennessee Main Streets
2012 Reinvestment Statistics2012 Reinvestment StatisticsNet new jobs - 604Net new businesses - 107Building Rehabilitation projects - 217Public Improvement projects - 304New Construction projects - 25Housing units created - 273Number of volunteer hours - 117,253Private investment in downtown - $ 62,081,591Public investment in downtown - $ 20,661,307Total public/private - $ 82,742,898
Tennessee DowntownsTennessee Downtowns▪ “Main Street on training wheels”▪ A competitive process▪ Requires a steering committee▪ Project focus▪ 18 month learning/training program▪ Round 1 – 10 communities▪ Round 2 – 12 communities▪ Round 3 – 6 communities
Why Downtown Is Important:Why Downtown Is Important:▪ A symbol of community economic health▪ Reflects local quality of life▪ A symbol of community pride and history▪ Supports local independent businesses▪ Serves as a good small business incubator▪ Can be a tourist destination▪ Important to business/industrial recruitment▪ Rehabilitation stimulates the local economy
Why organize a downtownWhy organize a downtownrevitalization effort?revitalization effort?To take control of the changes that are goingto happen and guide them in order to:▪ Develop underutilized spaces▪ Ensure quality infill construction▪ Facilitate building improvements▪ Support existing businesses
Why organize a downtownWhy organize a downtownrevitalization effort?revitalization effort?Continued…▪ Recruit new, compatible businesses▪ Enhance public improvements▪ Strengthen marketing▪ Encourage tourism▪ Expand special events and programs▪ Build partnerships and community
How to get your community excitedHow to get your community excitedabout downtown revitalizationabout downtown revitalization Organize a meeting and invite everyone to talk about downtown; Start talking about your downtown’s strengths and opportunities; Identify and talk to all community stakeholders - property owners,residents, business owners, and leaders; Visit other communities who have been successful in revitalization; Invite other communities to come to your town and tour; Inventory your downtown businesses; Send out a survey to your local residents - what do they want; Take a walk in downtown - with a camera! Talk to your city and county leaders about the importance on thehealth of downtown for economic development; Check out www.mainstreet.org for great examples of communitiesacross the country who have done it!
Main Street Programs areMain Street Programs areDevelopment PartnersDevelopment Partners▪ Market feasibility/studies▪ Understand local codes, ordinances, SID’s,_overlays, design guidelines, TIF districts…▪ Identify/connect with local stakeholders▪ Parking management▪ “Bridging the gap” through incentives, loans…▪ Publicity/public relations
Think Like A DeveloperThink Like A Developer What drives development? Who drives development? What barriers exist? What are the intrinsic strengths of thecommunity? What are the overlooked opportunities? What is the community personality? What does the community do well? What tools/resources exist?
• “Physical beauty”• “Opportunities for socializing”• “Differentiation”• “Unique characteristics of place”• “Real buildings, real people, real history”• “Walkability”• “Dynamic experiences”Downtown’s provide it!
Todd MorganCommunity Development Program DirectorTennessee Main Street CoordinatorTennessee Department of Economic & CommunityDevelopment – Rural Services Division615.532.3595Todd.Morgan@TN.govwww.TennesseeMainStreet.org