Beginning Monroe Business
 District Market Analysis

                     City of Spokane
     Neighborhood Business Cente...

Neighborhood Business Centers                     4

Monroe at a Glance                                6

Neighborhood Business Centers Map

                                                                    Business Centers

The City of Spokane, ...
The overall goal in neighborhood business center revitalization, driven by the
City of Spokane Comprehensive Plan, is to i...
                                                                             at a Glance

The North Monroe Corrid...
The Monroe land use and zoning community planning process has not progressed as
quickly as the Garland process though the ...
Current Zoning
                                                                          and Land Use

Monroe is part of t...
NBC’s Land Use and Zoning
Recommendation to Monroe Stakeholders:

This district is importing sales from outside its tradit...
Strongest AM Radio Stations                    Local Television
    KGA (1510 AM; The Big Talker)                     KSPS...

Claritas PRIZM ...
Next Steps

Using the districts’ market analysis Garland, with NBC’s assistance, will embark on creating very
specific a...
The most successful places have retail spaces, housing, office and civic spaces with a diverse
range of land uses for peop...
Business and
The Main Street Philosophy
Eight Principles of Success

  Comprehensive: No single focus — lavish public improvements, nam...
NBC Partners and Resources

Small Business Development Centers (SBDC)
The SBDC mission is to promote economic vitality ...
Institute for Extended Learning (IEL)
The Institute for Extended Learning develops individual potential and enhances
Washington State’s Business
Retention and Expansion (BRE) Program

Washington State's BRE Program also strengthens Washing...
Essential Elements of a Good Business Plan
for Growing Companies

A business plan should be a work-in-progress. Even succe...
Marketing the Shopping Experience
Marketing the shopping experience, or retail marketing, is different from other kinds of...

Housing Development - Housing Finance. The City awards HOME (Home
Investment Partnership Program, from HUD) ...
Historic- Overview. Owning an individual landmark, or property within an historic
district, is both a privilege and a resp...
Business Development - Community Empowerment Zone (CEZ). The Spokane
Community Empowerment Zone (CEZ) program is designed ...
Appendix 1

Monroe Trade Area Map
(Source: CLARITAS INC, 2007)

Appendix 2

Monroe Market and Demographic Executive
6   Total retail sales references on page 7 of market analysis

Appendix 3

Monroe Business Inventory

625        Monroe       Golden Rule Breaks
703        Mon...
1306   Monroe    Hazen & Jaeger Funeral Home
1322   Monroe    Music City
1323   Monroe    Louis's Auto Transmission
1401  ...
2415   Monroe   Funky Threads
2416   Monroe   Ducs Tailor
2417   Monroe   Almar Appliance
2418   Monroe   Burns Doors
2929                Monroe          A Stamp for All
       2931                Monroe          Cricket
       3004        ...
Appendix 4

Criteria for Determining Facade Condition

Excellent: no evident need for repair
Good: tidy and no major repairs required
Appendix 5

(Monroe Building Inventory Data Currently Not Available)

Appendix 6

Appendix 7

Appendix 8

Monroe 1 Mile RMP Opportunity Gap - Retail Stores 2006

How to use data sets together Estimates of Retail Sales per Square Foot GLA

The data in the following table on the estima...
Average of US Neighborhood, Community and Regional Shopping Centers
Based on the 2002 Dollars and Cents of Shopping Center...
Urban Land Institute, Washington, DC.
* Average of US neighborhood, community and regional shopping centers.
** No data av...
Appendix 9

Population and Households
Population and household data allows you to quantify the current market size and examine future
Beginning Monroe Business District Market Analysis
Beginning Monroe Business District Market Analysis
Beginning Monroe Business District Market Analysis
Beginning Monroe Business District Market Analysis
Beginning Monroe Business District Market Analysis
Beginning Monroe Business District Market Analysis
Beginning Monroe Business District Market Analysis
Beginning Monroe Business District Market Analysis
Beginning Monroe Business District Market Analysis
Beginning Monroe Business District Market Analysis
Beginning Monroe Business District Market Analysis
Beginning Monroe Business District Market Analysis
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Beginning Monroe Business District Market Analysis

  1. 1. Beginning Monroe Business District Market Analysis City of Spokane Neighborhood Business Centers Program (NBC) Development Incentives Department Economic Development Division Fax: 509-625-6013 City of Spokane Phone: 509-625-6300 Web: or Teri Cameron, Project Manager - NBC E-mail: Phone: 509-625-6597 Project Grant Funding: Washington State Department of Community, Trade and Economic Development Growth Management Services 906 Columbia St. SW PO Box 42525 Olympia, WA 98504-2525 1
  2. 2. Contents Neighborhood Business Centers 4 Monroe at a Glance 6 Zoning and Land Use 8 Employment Profile 10 Parks 10 Media, Churches, Hospitals 11 Lifestyle Segments 12 Next Steps 13 Business and Residential Development Strategies 15 Incentives 22 Appendix 25 2
  3. 3. Neighborhood Business Centers Map 3
  4. 4. Neighborhood Business Centers The City of Spokane, Economic Development Division’s Neighborhood Business Centers Program (NBC) is revitalizing Spokane’s historic pedestrian oriented commercial districts by implementing Spokane’s Comprehensive Plan in the “Centers and Corridors” which are identified for focused infill growth. These neighborhood centers add strength and diversity to Spokane's economy by providing space and markets to small businesses. NBC fosters community well being, local character, a sense of place, and prosperity by supporting small businesses, community interests, safety, tourism, and local events within vibrant family oriented neighborhood commercial districts. These walkable, traditional business centers are a unique destination for the tourist or resident at large and yet they are the neighborhood center and community gathering spot. They offer numerous antiques and antiquity expertise; the usual and the unusual music and expertise on instruments, lessons, and production assistance; the funky and fun gift, jewelry, and book stores along with some of the best coffee houses, bakeries, and local restaurants in the city all nestled among historic buildings, playgrounds, and neighborhood parks. With the City’s assistance in implementation and grant pursuit, some neighborhoods have leveraged private, community development or federal funds as a match to for the design and construction of specific capital improvement projects. Capital improvements take advantage of the districts’ best assets — such as historic buildings and pedestrian-oriented streets — but physical capital improvements are only part of the story. An inviting atmosphere created through vibrant pedestrian scale streetscapes, economic vitality, traffic calming, attractive window displays, parking areas, building improvements, street furniture, signs, sidewalks, street lights, and landscaping all conveys a positive visual message about the commercial district and what it has to offer. Inviting physical spaces and activities also include creating a good business mix, lowering vacancy rates, instilling good maintenance practices in the commercial district, enhancing the physical appearance of the commercial district by rehabilitating historic buildings, encouraging appropriate new construction, developing sensitive design management systems, and good event and promotion programming management which all require long-term planning. Washington State’s Growth Management Act and the City of Spokane’s Comprehensive Plan both encourage more centralized development that improves residents’ quality of life while it also makes maximum use of the investment the public has already made in existing infrastructure. 4
  5. 5. The overall goal in neighborhood business center revitalization, driven by the City of Spokane Comprehensive Plan, is to increase recognition of the investment opportunities that lie in these traditional neighborhood business centers. Thriving businesses attracts a stable and dynamic residential base and vice versa. Successful businesses also expand their workforce, offering increased employment opportunities within the neighborhoods. All of this is consistent with Spokane’s Comprehensive Plan, which focuses growth into these designated Centers and Corridors in order to reduce transportation impacts and increase residents’ ability to conveniently access the goods and services they need for their daily lives. Thriving business districts mean a thriving local economy. The City of Spokane Neighborhood Business Centers (NBC) program holds a National Trust for Historic Preservation Main Street ™ network membership and is currently working towards becoming a Main Street Citywide program. Because of our unique status of not yet being a Citywide Main Street program, we are functioning on two levels. As a Citywide program NBC will be providing the technical assistance and guidance to our business districts that are functioning as Main Street programs who will then be handling the implementation within their districts. Currently, NBC is both implementing projects and providing the technical assistance. Though NBC is a few years away from reaching Main Street’s citywide status, we still follow its Four-Point Approach ™ to revitalization. Currently, we provide organizational and business development training, fund and implement capital improvements, and work with five business districts on promotion. The Main Street program is the only national economic revitalization program that works everywhere and anywhere. Cities, business associations, chamber of commerce and/or volunteer non-profit organizations anywhere can apply its Four-Point approach (Design, Organization, Promotion and Economic Restructuring) to revitalization. The Economic Restructuring point recommends that revitalization organizations conduct market analysis frequently along with engaging in business development, property development, financial incentives programming, planning and zoning, and monitoring economic performance. 5
  6. 6. Monroe at a Glance The North Monroe Corridor extends two-miles from the Monroe Street Bridge north to the base of the hill that leads up to the Garland Neighborhood Center. To capture the entire commercial corridor for the Claritas data (see Appendix 1) and this analysis we are required to look at a larger trade are that expands beyond the typical walking radius of a ½–mile. Therefore, a one-mile radius from a central point at N. Monroe and Indiana Ave. was used in establishing the trade/market area. This area touches downtown and the Spokane River at its southern edge, the Gonzaga University campus is on the southeastern edge, the 78 acre proposed Kendall Yards development is on the southeastern edge, and the northern edge of that circle approaches the core of the Garland neighborhood business district. This one-mile radius overlaps two of the city’s most heavily traveled arterials: Maple/Ash is a ½–mile to the west, and the Division/Ruby couplet is ¾-quarters of a mile to the east. In addition, Northwest Boulevard runs diagonally through the northwestern quadrant of this radius. All three are intensively developed commercial areas. In addition, there are 2 city parks within a ½–mile of the center point, and 8 city parks lie within the 1-mile radius. This commercial district’s history is deeply rooted in transportation—in the 1920s Monroe served as only one of four routes across the Spokane River and was one of the northbound streetcar routes. It has since developed as a regional northbound transportation route and is still only one of four corridors crossing the Spokane River going north. This district is home to the historic County Court House and has always been home to both the City and County judicial systems. Between the court buildings, the county public works and health buildings, the attorney’s offices, and the city jail a large portion of the commercial space is occupied but non sales tax generating businesses. Also along the 2-mile corridor there is a Community College Extended Learning Center and spattering of franchise and national eating establishments (Baskin & Robbins, McDonalds, Shari’s, Skipper’s and Zip’s) but the district is predominantly locally owned retail shops. In addition, to the new Kendall Yards development (2,600 high-end condos and apartments in a mixed use development with 1,000,000 square feet of commercial space) to the south there will also be a very large combined YMCA & YWCA campus soon under construction. There are a couple of larger locally owned businesses, which the district considers anchors and they advertise locally, which brings in customers – Fred’s Appliance and Hoffman’s Music. 6
  7. 7. The Monroe land use and zoning community planning process has not progressed as quickly as the Garland process though the two were scheduled to be on the same timeline. The Monroe business corridor is just over 2-miles long and includes the Monroe Business Association, the Central (Downtown) Business District Business Improvement (Taxing) District and three residential neighborhoods; so, very diverse ideas and concerns are represented in this planning process. This longer process has allowed us more time to help the stakeholders understand the zoning and land use challenges the district faces. Understanding the challenges allows them to create a land use and zoning proposal that will help them build upon their existing assets and help them position themselves for future infill growth without upzoning. At the time of this report the land use and zoning process has not yet finished a proposal for the Planning Commission or Council to consider. The stakeholders are finding it difficult to possibly down zone or restrict uses in their district while they feel the district can prosper commercially. But, the current proposal does lower the intensity of the uses while also boosting the residential density with the CC1 and CC4 zoning. Later in this report, we will come back to discussing the recommendations the NBC team is making regarding the zoning and land use changes for the Monroe corridor. Currently Monroe has: (Appendix 2 contains tables with Monroe market and demographic summaries) 170 businesses (square footage unknown as of today) (see Appendix 3) 22 vacancies which is a 12.8% vacancy rate – a healthy vacancy rate is lower than 10% District’s sales are over $255 million (see Appendix 2) Consumer expenditures of just over $185 million Only four buildings have developed to the maximum Floor Area Ratio allowed (see Appendix 4). A large portion retail store frontage devoted to non-retail uses such as bail bonds, attorney’s government and/or institutional uses, etc. (until vacancies fill in and rents increase we will not see a change in the underutilized spaces) 6,436 housing units within a 1 mile radius (see Appendix 2) .026 businesses per housing unit (the business per housing unit ratio is healthier when it is below 1) (see Appendix 2) Current Monroe Statistics Number of Businesses 170 Number of Housing Units (2000) 6,436 Businesses/Housing Units .026 7
  8. 8. Current Zoning and Land Use Monroe is part of the City of Spokane Centers & Corridors comprehensive planning process and concentrates future growth in mixed-use district centers, employment centers, neighborhood centers, and activity corridors. The purpose is to re-focus in these areas and to encourage economic activity through new development and revitalization. The result is to make these targeted areas dynamic, vibrant, and healthy urban centers. Monroe district zoning designations: Residential Multifamily (RMF) is a medium-density residential zone. Housing is characterized by one to four story structures. The major types of development include attached and detached single-family residential, condominiums, apartments, duplexes, townhouses and row houses. The minimum and maximum densities are fifteen and thirty units per acre. Type 1 (CC1), Pedestrian Emphasis/Auto Accommodating promotes the greatest pedestrian orientation of the center and corridor zones. To accomplish this, some limitations are placed on auto-oriented activities and some types and the allowable size of some uses are controlled. Type 2 (CC2), Pedestrian Enhanced/Auto Accommodating promotes new development and redevelopment that is pedestrian oriented while accommodating the automobile. Incentives allowing a higher floor area ratio in exchange for the provision of greater public amenities as land is developed and redeveloped are encouraged in these areas Office (O) zone is used on small sites in or near residential areas or between residential and commercial areas. It is intended to be a low intensity office zone that allows for small-scale offices in or adjacent to residential neighborhoods. The allowed uses are intended to serve nearby neighborhoods and/or have few detrimental impacts on the neighborhood. Monroe district land use designations: Office is usually freestanding small office sites and larger sites with two or more buildings located along arterial streets or intersections or as a buffer adjacent to residential areas. Sit-down restaurants and drive-thru or drive-in uses are not allowed. General Commercial includes a wide range of commercial uses. Everything from freestanding business sites or grouped businesses (shopping centers) to heavy commercial uses allowing outdoor sales and warehousing are allowed in this designation. R 10-20 replaces the Two-Family Residential designation. The allowed density is a minimum of 10 and a maximum of 20 units per acre. Allowed structure types are single-family residences or two-family residences on individual lots or attached (zero- lot line) single-family residences. R 15-30 replaces the Medium Density Residential designation. Allowed density is a minimum of 15 units and a maximum of 30 units per acre. The Medium Density Residential designation is often used as a transitional land use designation between arterial streets or commercial activities and single-family residential areas; small apartments on individual lots and large apartment projects on freestanding sites are allowed. (See Appendix 4 for Zoning and Land Use Maps) 8
  9. 9. NBC’s Land Use and Zoning Recommendation to Monroe Stakeholders: This district is importing sales from outside its traditional market/trade area but it faces a few challenges, a higher than desirable vacancy rate and a major new development at its southern end. These challenges also offer opportunities yet ballooning out the commercial zoning at this crucial point may prove detrimental. Currently the analysis of the data and the current housing and retail trends lead NBC to recommend that the Monroe district look at beefing up the CC1 and the transitional CC4 zoning. The CC1 and CC4 mixed use zoning allows for or requires a residential component and comes with infill development incentives. NBC’s recommendation is for rezoning existing property rather than adding more commercial space. From an economic standpoint we are talk about building in customers. The recommendation is not for a radical change but rather while the stakeholders are looking at high use hubs/nodes in their zoning process that they should look at more housing with CC1 or CC4 zoning and its associated land uses. Early on we shared the raw data we were gathering with the Monroe district stakeholders on their retail sales – the district is importing more sales than the neighborhood can purchase so supply is higher then the neighborhoods demand. It is good that the businesses are drawing in more sales than it neighborhood residents are able to purchase – this shows us that the district has a larger trade area, and likely some major destination based anchors, than its neighborhood but it also show us that we have an opportunity to help strengthen the economic vitality. Ideally, a business makes more money when demand is equal to or in the case of rare items demand is higher than supply. The same holds true with property – when you have too much available property prices and rents go down, if there is not the demand. When spaces sit vacant frequently or for long periods of time property is not improved and property values decrease and rents stay low so businesses turn over rapidly. So the goal with the Monroe district is to strengthen its economic vitality without boosting the supply of available property beyond what the market can support. This way the district will be requiring a higher level of development with a strong residential component allowing the district and NBC to work to together to focus on marketing the existing available spaces. The new Kendall Yards development is going to bring in more customers but it will also be bringing in more commercial space. One of Kendall Yards’ proposals: “It is expected to include up to 2,600 residential units and up to a million square feet of commercial, retail, and office space once it’s completely built out.” This proposal is very good and will be healthy for the neighborhood, the neighborhood income levels and property values will all go up, and the new regionally drawing businesses will be in the near vicinity bringing in new customers. But, consider that Kendall Yards to the immediate south will be bringing with it more commercial square footage than the Garland district, which is to the immediate north, with a fewer housing units. For the North Monroe district to also add significant commercial space at the same time without building in more customers will be detrimental to the district’s economic health. Be very conservative in the amount of commercial space and look at creating more high quality residential density with larger CC1 and CC4 zones. It’s been brought up that the current housing market may not have the need for the additional multifamily or apartment housing. Next you will find an article published by HUD that highlights Spokane as having a demand for more multifamily and apartment housing options. Following the housing information you will find some information on trends in the retail market - It is important to remember that market analysis is not an exact science rather it is a matter of using all the data to draw well-informed conclusions from which you then create strategies to better position your commercial district. 9
  10. 10. General Information Employment Profile by Industry City of Spokane Monroe Spokane County Agriculture, forestry, mining 0.1% 0.4% 0.8% Construction 6.0% 5.9% 6.3% Manufacturing 3.4% 4.7% 10.4% Wholesale trade 2.5% 4.1% 4.6% Retail trade 7.7% 13.0% 12.7% Transportation, warehousing, utilities 3.6% 3.8% 4.7% Information 2.9% 3.0% 2.3% Finance, insurance, real estate 10.2% 8.7% 7.1% Professional, management, administrative services 13.6% 9.4% 8.5% Educational, health and social services 16.3% 26.4% 23.2% Entertainment, accommodations, food services 7.8% 9.2% 7.8% Other services (except public) 6.1% 6.0% 5.5% Public administration 19.7% 5.3% 4.7% Armed forces 0.3% 0.2% 1.6% Source: Census Transportation Planning Package (CTPP2000) data on place-of-work of the U.S. population based on 2000 Census long-form questionnaire responses. These Business Place-of-Work Drill Downs were prepared by the University of Wisconsin-Milwaukee Employment and Training Institute, 2005. Monroe Area Parks Emerson Park, 3.5 acres at Alice and Madison, Softball / Baseball Fields, Basketball Courts, Picnic Tables Corbin Park, 11.5 acres at Waverly Place and Washington, Softball / Baseball Fields, Tennis Courts, Basketball Courts, Horseshoes, Picnic Tables, located in Corbin Neighborhood Historic District Drumheller Springs Park, 12.01 acres at Euclid and Ash, Trails and Historic Interest Riverfront Park, 100 acres at Spokane Falls Blvd. & Washington, Trails, Picnic Tables, Shelter or Full Picnic Facilities, Playground Equipment, Food Service, Gift Shop, River Frontage Monroe Antique Stores The Antique Gallery, 620 N Monroe St Area 58, 3036 N. Monroe St Border To Border, 2106 N Monroe St Jana's Antiques & Collectibles, 2611 N Monroe St Jewels Etc., 618 N Monroe St Julie Buttons, 2907 N Monroe St Kaleidoscope Antiques, 705 N Monroe St Lillian Conn Antiques & Collectibles, 1001 W Augusta St Monroe Street Bridge Antique Market, 604 N Monroe St Pearl Rose Timeless Treasures, 1215 N Monroe St Time Bomb, 11 N Monroe The Vintage Rabbit Antique Mall, 2317 N Monroe St 10
  11. 11. Strongest AM Radio Stations Local Television KGA (1510 AM; The Big Talker) KSPS (public television channel 7) KXLY (920 AM; Talk) KAYU (Fox channel 28) KHQ (NBC channel 6) KREM (CBS channel 2) KXLY (ABC channel 4) Strongest FM Radio Stations City Cable 5 KAEP (105.7 FM; The Buzzard) KCDA (103.1 FM; The Mix) KDRK (94 FM; Cat Country) KEYF (101.1 FM; Oldies) KHTQ (94.5 FM; Rock) KAGU (88.7 FM; Classical/Jazz) KISC (98.1 FM; Lite Rock KISS) KPBX (91.1 FM, Spokane Public Radio) KKZX (98.9 FM; Classic Rock) KWHK (103.9 FM; Wild) ZZU (92.9 FM; Modern) Places of Worship Holy Temple Church of God, 806 W Indiana Ave Saint Anthonys Church, 2320 N Cedar St Holy Trinity Greek Orthodox Church, 1703 N Washington St Living Truth Tabernacle, 1025 N Cannon St Jesus Lord Church of The Living God, 1129 W Jackson Ave The Church In Spokane, 715 W Cora Ave Second Church of Christian Scientist, 3915 N Monroe St Monroe Park Gospel Chapel, 4123 N Monroe St Crossroads Christian Ministries, 1113 W Gordon Ave First Free Methodist Church, 1725 W Courtland Ave Hospitals Holy Family Hospital, 5633 N Lidgerwood St Sacred Heart Medical Center, 101 W 8th Ave Sacred Heart Children's Hospital, 101 W 8th Ave Shriners Hospitals for Children Spokane, 911 W 5th Ave Valley Hospital and Medical Center, 112 E 4th Ave Veterans Affairs Medical Center, 4815 N Assembly St Newspapers/Journals Spokesman Review, Pacific Northwest Inlander, Journal of Business, 11
  12. 12. Lifestyle Segments Claritas PRIZM NE (New Evolution) defines every household in terms of 66 demographically and behaviorally distinct types, or "segments," to help you learn about their likes, dislikes, lifestyles and purchase behavior. PRIZM divides the U.S. consumer into 14 different groups and 66 different segments. Segments related to the Monroe area are based on the 99205 and 99201 zip codes. List below are the lifestyle groups and related segments most commonly found in the Monroe area. Old Glories are the nation's downscale suburban retirees, Americans aging in place in older apartment complexes. These racially mixed households often contain widows and widowers living on fixed incomes, and they tend to lead home-centered lifestyles. They're among the nation's most ardent television fans, watching game shows, soaps, talk shows and newsmagazines at high rates. Middleburg Managers arose when empty-nesters settled in satellite communities which offered a lower cost of living and more relaxed pace. Today, segment residents tend to be middle-class and over 55 years old, with solid managerial jobs and comfortable retirements. In their older homes, they enjoy reading, playing musical instruments, indoor gardening and refinishing furniture. Affordable housing, abundant entry-level jobs and a thriving singles scene–all have given rise to the Boomtown Singles segment in fast-growing satellite cities. Young, single and working-class, these residents pursue active lifestyles amid sprawling apartment complexes, bars, convenience stores and laundromats. In City Startups, young, multi-ethnic singles have settled in neighborhoods filled with cheap apartments and a commercial base of cafés, bars, laundromats and clubs that cater to twentysomethings. One of the youngest segments in America–with ten times as many college students as the national average–these neighborhoods feature low incomes and high concentrations of Hispanics and African-Americans Young singles and single parents make their way to Mobility Blues, a segment of working-class neighborhoods in America's satellite cities. Racially mixed and under 25 years old, these transient Americans tend to have modest lifestyles due to their lower- income blue-collar jobs. Surveys show they excel in going to movies, playing basketball and shooting pool. Park Bench Seniors are typically retired singles living in the racially mixed neighborhoods of the nation's satellite cities. With modest educations and incomes, these residents maintain low-key, sedentary lifestyles. Theirs is one of the top-ranked segments for TV viewing, especially daytime soaps and game shows.] With three-quarters of all residents over 65 years old, Hometown Retired is one of the oldest segments. These racially mixed seniors tend to live in aging homes–half were built before 1958–and typically get by on social security and modest pensions. Because most never made it beyond high school and spent their working lives at blue-collar jobs, their retirements are extremely modest. The small-city cousins of inner-city districts, Family Thrifts contain young, ethnically diverse parents who have lots of children and work entry-level service jobs. In these apartment-filled neighborhoods, visitors find the streets jam-packed with babies and toddlers, tricycles and basketball hoops, Daewoos and Hyundais. Bedrock America consists of young, economically challenged families in small, isolated towns located throughout the nation's heartland. With modest educations, sprawling families and blue-collar jobs, many of these residents struggle to make ends meet. One quarter live in mobile homes. One in three haven't finished high school. Rich in scenery, Bedrock America is a haven for fishing, hunting, hiking and camping. 12
  13. 13. Next Steps Using the districts’ market analysis Garland, with NBC’s assistance, will embark on creating very specific and individual business development strategies based on recruitment and retention. NBC’s recommendation and assistance will mimic and utilize those of the Nation Main Street Program and the “Keeping Businesses Healthy, Happy and Local: Business Retention and Expansion Primer” guidebook by Ginger Rich at Washington State Department of Community Trade and Economic Development (both Garland and Monroe Market Analysis contain extensive information for building individual development strategies). Residential Housing is an essential element in revitalization of downtown [and commercial] districts. Demographic and lifestyle changes are creating new opportunities for specific residential segments and housing categories. This section provides an abbreviated method for assessing general market opportunities using a simple demand and supply analysis for a community. A more focused assessment of downtown [and commercial district] housing opportunities is then discussed. For more information see Retail Trends and Retailer’s Needs A typical locally owned small business averages $80/sqft. per year in sales, the national average for retailers is $275/sqft. per year in sales and major national retailers’ average $575/sqft. per year in sales. Small independent retailers make about $7/hour and give up approximately 70% of their market share by being closed in the evenings; 75% of all retail merchandise transactions in the US occur between 4:00 p.m. and 11:00 p.m. and on weekends. Women consumers do 90% of the shopping in a household and “men hate to shop.” However, “shopping is the new chore” it is no longer a pleasure. Currently, to most consumers time is worth more than money. “Consumers are store loyal” and retailers have “1½ seconds to capture the pedestrians” interest while they are walking by – “banners, pavers, and such distract shoppers the “store displays are the view” and “shoppers travel in a counter clockwise path” while on the street or in the store. However, street furniture and its arrangement are very important, pieces should be fresh and new at least every 8-10yrs. and seating should never be isolated. Studies show that women shoppers will not enter a store if a teenage male who may look slightly threatening is sitting on a bench outside or in front of a store. Parks in the business district, even pocket parks cause shoppers to stop shopping. Therefore, the recommendation is to invest in the storefronts rather than making expensive additions to our streetscapes. It is proven that storefronts are what generate the sales for a store. It is suggested that you let the backs of the buildings remain ugly and put all the money into the façade. Most consumers have no need to shop – most have a 1yr. supply of clothing and sundries on hand. Typically, consumers spend approximately 25% on health care, 13% on food, 32% on housing, 4% on apparel, and 18% of their income on transportation. In the US there is approximately 20 square feet of commercial space per person. Each household supports 8-10 square feet of retail space, office workers support 5 square feet of restaurant space and 4 square feet of retail space and the new trend is that office workers are beginning to support a lot of grocery retail space in the vicinity of their work. 13
  14. 14. The most successful places have retail spaces, housing, office and civic spaces with a diverse range of land uses for people of all ages because they help support one another. For example, a post office or mail pick-up located net to a coffee shop brings neighbors into a district and then the coffee shop provides a congregation location. Placemaking is about creating and managing (programming – the use of events and residential outreach) a place that people want to be in collectively and connect with one another. Retail sales per square foot are their highest where auto traffic is high. Retailers need many cars traveling past their stores, 35,000 cars per day or more (business associations should market the district’s traffic counts). Therefore, commercial spaces need to be pedestrian friendly without reducing the traffic volumes. Bob Gibbs says that if the land use requirements are for retail on the street level then on street parking has to be required for it to be successful. You can charge for on street parking and/or supplement it but do not more it or put it between buildings. For example, studies show that on street parking (1 stall) supports one retailer. National retail anchors in a downtown or even a neighborhood center are a tremendous benefit. A retail center should work with a developer to attract retailers and in particular their anchors. Developers can leverage thing s a city or district organization cannot. Anchors advertise and bring in the customers that the small independents cannot afford to reach. The consumer demographic is a household with an annual income of $45,000/yr with a high school education who believes JC Penny to be a luxury store and 55% of all households shop at a Wal-Mart weekly. If you have, the right consumer market to draw in a national anchor you can control their appearance. The big name anchors can be very demanding – to the extent that you may have to offer tremendous incentives or even build their building for them. Most major retailers want the district where they locate to require a higher level of development – they do not want to locate in a run down area – they want to be assured that the regulations are in place to prevent shoddy development next door. Cities and business district can require that development be at a zero setback with multiple stories, all glass on the main floor, entrance doors every 30-40 feet. Or, allow small shops to wrap the exterior of the big box but it is recommended that you not try to control the overall size, and, major retailers need to have the room to expand as their business grows. New mall openings have reached their tipping point. The current retail trends are for open-air Main St. type business centers. Open-air centers in cold climates make more money than closed air malls. Successful retail districts have housing above retail with A and B parts; A = Big box retail and B = small independent retailers, the typical district is a 1,000 – 1,200 foot rectangle with a jog in the street grid. It is a convenience retail center with coffee shops and gathering spaces all arranged on platted small lots of 20-30 foot widths. Larger retailers need to know that they will have the consumers to support their location decisions Bob Gibbs recently shared this information on how many homes are need in a given area for retail space requirements: Retail Space and Homes Needed in the Trade Area1 Square Feet of Retail Space Miles (Trade Area) Number of Homes 1,000 ½ 500 15,000 1 1,500 150,000 2-3 5,000 500,000 5-7 30,000 1,000,000 12 100,000 14
  15. 15. Business and Residential Development Strategies The Main Street Four-Point Approach™ to Commercial District Revitalization Organization involves getting everyone working toward the same goal and assembling the appropriate human and financial resources to implement a Main Street revitalization program. A governing board and standing committees make up the fundamental organizational structure of the volunteer-driven program. Volunteers are coordinated and supported by a paid program director as well. Promotion sells a positive image of the commercial district and encourages consumers and investors to live, work, shop, play and invest in the Main Street district. By marketing a district's unique characteristics to residents, investors, business owners, and visitors, an effective promotional strategy forges a positive image through advertising, retail promotional activity, special events, and marketing campaigns carried out by local volunteers. These activities improve consumer and investor confidence in the district and encourage commercial activity and investment in the area. Design means getting Main Street into top physical shape. Capitalizing on its best assets — such as historic buildings and pedestrian-oriented streets — is just part of the story. An inviting atmosphere, created through attractive window displays, parking areas, building improvements, street furniture, signs, sidewalks, street lights, and landscaping, conveys a positive visual message about the commercial district and what it has to offer. Design activities also include instilling good maintenance practices in the commercial district, enhancing the physical appearance of the commercial district by rehabilitating historic buildings, encouraging appropriate new construction, developing sensitive design management systems, and long-term planning. Economic Restructuring strengthens a community's existing economic assets while expanding and diversifying its economic base. The Main Street program helps sharpen the competitiveness of existing business owners and recruits compatible new businesses and new economic uses to build a commercial district that responds to today's consumers' needs. Converting unused or underused commercial space into economically productive property also helps boost the profitability of the district. 15
  16. 16. The Main Street Philosophy Eight Principles of Success Comprehensive: No single focus — lavish public improvements, name-brand business recruitment, or endless promotional events — can revitalize Main Street. For successful, sustainable, long-term revitalization, a comprehensive approach, including activity in each of Main Street's Four Points, is essential. Incremental: Baby steps come before walking. Successful revitalization programs begin with basic, simple activities that demonstrate that "new things are happening " in the commercial district. As public confidence in the Main Street district grows and participants' understanding of the revitalization process becomes more sophisticated, Main Street is able to tackle increasingly complex problems and more ambitious projects. This incremental change leads to much longer-lasting and dramatic positive change in the Main Street area. Self-help: No one else will save your Main Street. Local leaders must have the will and desire to mobilize local resources and talent. That means convincing residents and business owners of the rewards they'll reap by investing time and money in Main Street — the heart of their community. Only local leadership can produce long-term success by fostering and demonstrating community involvement and commitment to the revitalization effort. Partnerships: Both the public and private sectors have a vital interest in the district and must work together to achieve common goals of Main Street's revitalization. Each sector has a role to play and each must understand the other's strengths and limitations in order to forge an effective partnership. Identifying and capitalizing on existing assets: Business districts must capitalize on the assets that make them unique. Every district has unique qualities like distinctive buildings and human scale that give people a sense of belonging. These local assets must serve as the foundation for all aspects of the revitalization program. Quality: Emphasize quality in every aspect of the revitalization program. This applies to all elements of the process — from storefront designs to promotional campaigns to educational programs. Shoestring budgets and "cut and paste" efforts reinforce a negative image of the commercial district. Instead, concentrate on quality projects over quantity. Change: Skeptics turn into believers and attitudes on Main Street will turn around. At first, almost no one believes Main Street can really turn around. Changes in attitude and practice are slow but definite — public support for change will build as the Main Street program grows and consistently meets its goals. Change also means engaging in better business practices, altering ways of thinking, and improving the physical appearance of the commercial district. A carefully planned Main Street program will help shift public perceptions and practices to support and sustain the revitalization process. Implementation: To succeed, Main Street must show visible results that can only come from completing projects. Frequent, visible changes are a reminder that the revitalization effort is under way and succeeding. Small projects at the beginning of the program pave the way for larger ones as the revitalization effort matures, and that constant revitalization activity creates confidence in the Main Street program and ever-greater levels of participation. (Source: National Trust for Historic Preservation National Trust Main Street Center program) 16
  17. 17. NBC Partners and Resources Small Business Development Centers (SBDC) The SBDC mission is to promote economic vitality within Washington communities by providing expert business advising, demand-driven training, and applied research to existing businesses and entrepreneurs. The Washington SBDC is increasingly recognized as a premier economic development resource for business retention, expansion, and entrepreneurial development. ( Eastern Washington University Center for Entrepreneurial Activities Provides assistance in writing or rewriting a working business plan. The CEA’s overall mission is to stimulate, promote, and support the systematic practice of innovative entrepreneurial enterprises in the Spokane region as well as in the Inland Northwest. Within the community, the CEA enhances the principles of the “engaged university” in which community service is integral to EWU’s mission. ( Inland Northwest Women’s Business Center (WBC) The mission of the WBC is to be the pathway to creation, evolution and success for women-owned businesses in the Inland Northwest. Partially funded by the US Small Business Administration, the WBC is required to match these funds with community partners through sponsorships and in-kind donations. The WBC offers five core services: Free business counseling for those who have a business idea, who are launching a business, or for those who are established in business and want to tap into the next level of success; ongoing workshops on a variety of different topics for a nominal fee. ( BIZStreet is part of the small business program of the Spokane Regional Chamber of Commerce, and provides business assistance, information, resources and regional contacts. The BIZStreet Resource Center provides a one- stop shop for the curious, the hopeful entrepreneur and the frustrated business owner. ( 17
  18. 18. Institute for Extended Learning (IEL) The Institute for Extended Learning develops individual potential and enhances economic prosperity of the communities they serve. In collaboration with accredited partners, IEL provides a dynamic and responsive spectrum of education and training programs and services for the benefit of individuals, families, employers and organizations. The IEL uses time tested and innovative educational delivery systems to give students, both urban and rural, access to learning opportunities they otherwise might not have. ( Spokane Neighborhood Economic Development Alliance (SNEDA) SNEDA is a neighborhood-based, nonprofit organization that aims to help businesses and nonprofits improve their profitability or sustainability, and create jobs and affordable housing. They do this by connecting businesses and nonprofits to existing resources and providing financing to entrepreneurs and nonprofits that have been unable to access it through traditional means. The ultimate goal is to create new and higher paying jobs that will help revitalize low- income neighborhoods. ( SCORE “Counselors to America's Small Business' is a national nonprofit association dedicated to entrepreneur education and the formation, growth and success of the nation’s small business. SCORE Spokane provides free and confidential business counseling tailored to meet the needs of your small business and your personal objectives. SCORE Spokane also offers workshops, for a modest fee, for both start-up entrepreneurs and in-business small business owners. ( Terabyte Triangle Your business requires high-speed connectivity and access to all things digital. You don't want to hassle with installing and maintaining a box of silicon and a wall full of wires. You want to plug in, but you don't want to break the bank. If you're looking to relocate your business where power is plentiful, people are friendly, and living is good, look no farther. ( Spokane Neighborhood Action Programs (SNAP) SNAP works for low-income and vulnerable people by providing human services, housing and economic opportunities in a manner, which enhances dignity and by advocating for programs, policies and resources that maximize individual capacities and promote communities. ( Eastern Washington University Urban and Regional Planning Community Service & Applied Research for the Region ( 18
  19. 19. Washington State’s Business Retention and Expansion (BRE) Program Washington State's BRE Program also strengthens Washington’s economy by encouraging companies to invest in the state through relocation or expansion. The program works with domestic and international companies on all aspects of due diligence support and public-private deal structuring and site locating decisions. The group’s partners include economic development organizations in every community in Washington. The objectives of the MRE Program are to: Establish early warning systems for identifying companies at risk or considering expansion Retain a strong manufacturing and processing base in the state Build local capacity for business retention and expansion services Coordinate state and local business and job retention and expansion activities For more information: (Source: Keeping Business Healthy, Happy & Local, Department of Community, Trade and Economic Development) Grassroots Efforts to Help Keep Businesses Local Small Business Innovation Research: Introduce local companies to new opportunities to turn their good ideas into new, innovative products. Match-Market Analysis: Identify existing and potential customers and suppliers for incoming and local companies. Market Research: Identify existing and potential new markets for local and new businesses. Manufacturing Councils or Networks: Help local companies build new business relationships and provide a forum for exchange of ideas and mutual problem solving. Business Incubation Centers: Provide facilities, business services, and other resources to start-up ventures and entrepreneurs. (Source: Keeping Business Healthy, Happy & Local, Department of Community, Trade and Economic Development) Seven Distinct Area of Emphasis are Suggested for the New Downtown Marketer: 1. Promoting downtown merchants as celebrities 2. Promoting museums and cultural institutions as the new downtown anchors 3. Promoting local history as the context for the experience of the downtown 4. Programming smaller, more frequent events 5. Promoting 24/7 mind-set among all of the downtown stakeholders 6. Creating different criteria for new businesses, e.g., actors in the experience 7. Becoming a concierge: scripting the trip/organizing the trip/creating itineraries for locals and visitors alike (Source: Making Business Districts Work, International Downtown Association) “What Mainstreet Can Learn from the Mall” A guided tour with a landscape architect and retailing specialist who believes that shopping malls can offer moribund cities that they desperately need: practical lessons in the psychology of commerce. Atlantic Monthly Article (see Appendix 6) 19
  20. 20. Essential Elements of a Good Business Plan for Growing Companies A business plan should be a work-in-progress. Even successful, growing businesses should maintain a current business plan. Every successful business plan should include something about each of the following areas, since these are what make up the essentials of a good business plan: Executive Summary: The executive summary is the most important section of your business plan. It provides a concise overview of the entire plan along with a history of your company. This section tells your reader where your company is and where you want to take it. It's the first thing your readers see; therefore it is the thing that will either grab their interest and make them want to keep reading or make them want to put it down and forget about it. More than anything else, this section is important because it tells the reader why you think your business idea will be successful. Market Analysis: The market analysis section should illustrate your knowledge about the particular industry your business is in. It should also present general highlights and conclusions of any marketing research data you have collected; however, the specific details of your marketing research studies should be moved to the appendix section of your business plan. This section should include: an industry description and outlook, target market information, market test results, lead times, and an evaluation of your competition. Company Description: Without going into detail, this section should include a high level look at how all of the different elements of your business fit together. The company description section should include information about the nature of your business as well as list the primary factors that you believe will make your business a success. Organization & Management: This section should include: your company's organizational structure, details about the ownership of your company, profiles of your management team, and the qualifications of your board of directors. Marketing & Sales Management: Marketing is the process of creating customers, and customers are the lifeblood of your business. In this section, the first thing you want to do is define your marketing strategy. There is no single way to approach a marketing strategy; your strategy should be part of an ongoing self-evaluation process and unique to your company. Service or Product Line: What are you selling? In this section, describe your service or product, emphasizing the benefits to potential and current customers. Focus on the areas where you have a distinct advantage. Identify the problem in your target market for which your service or product provides a solution. Funding Request: In this section, you will request the amount of funding you will need to start or expand your business. If necessary, you can include different funding scenarios, such as best and worst-case scenarios, but remember that later, in the financial section, you must be able to back up. (Source: US Small Business Administration) 20
  21. 21. Marketing the Shopping Experience Marketing the shopping experience, or retail marketing, is different from other kinds of marketing that you will do for your downtown because it has a key goal – to attract customers to your retailers and get them to buy something. Factors that should be kept in mind when creating a retail-marketing plan: Overall image or brand of downtown: This will have significant impact on how you market your retailers. Is your message is intimate and historic then your retail advertising cannot be loud and abrasive. Non-retail events and activities: If you plan other activities, then retailers can take advantage of the crowds attracted to downtown. The Retail Marketing Planning Process: Develop a Planning Group: A planning group should involve retailers. Involving retailers will bring more knowledge and experience to the working group and will help retailers see the big picture and not just what works for their business or area. Agree to Targets and Objectives: An important first step for a working group is to set clear, measurable objectives for the retail-marketing plan. Agree to Target Market Segments: Downtown workers, other regular downtown visitors (e.g. universities and colleges), irregular visitors to downtown (local residents who come downtown for entertainment or other facilities), downtown residents, local residents, and regional residents. Develop Budget Allocations: The overall retail marketing budget should be developed on a yearly basis, which allows planners to allocate the total budget over the most important merchandising periods. Create the Marketing Calendar: The marketing calendar is a great planning and communications vehicle, because it encapsulates all the activities that are happening in on easy-to-read document. The calendar is also ideal for communications to members and other stakeholders. Implementation Plan: The planning stage is very important, but good implementation key. It is better to take on fewer projects and do them well than to do many, poorly implemented projects. Review and Measure Results and Make Warranted Changes: The marketing planning group should meet at least twice a year, but preferably quarterly, to review the results of the promotions. (Source: Making Business Districts Work, International Downtown Association) 21
  22. 22. Incentives Housing Development - Housing Finance. The City awards HOME (Home Investment Partnership Program, from HUD) funds as low-interest, deferred loans to for-profit, non-profit, and project sponsors. HOME funds must assist in the acquisition, construction and rehabilitation of low-income rental housing. HOME funds serve as "gap financing" leveraging other sources of financing. Projects awarded HOME funds must agree to tenant rent and income restrictions for a period of affordability. Applicants must also provide social services, management, and tenant selection plans for their project. Applications are accepted twice yearly, usually in February and August. Projects are evaluated, in part, on how they meet the housing needs of Spokane's priority populations: large households (requiring units with 3 or more bedrooms) with incomes at or below 50% AMI and households with incomes at or below 30% AMI and one and two bedroom units affordable to households below 50% AMI which are located in areas designated as Centers and Corridors in the City of Spokane's Comprehensive Plan (see Appendix 7). Projects, which are economically viable without HOME assistance, are given a low priority. For more information: Information on other housing finance resources available through the City's Community Development Department: Housing Development -Multi-Family Tax Exemption (MFTE). The City of Spokane 's Multi-Family Tax Exemption (MFTE) program provides for a 10-year property tax exemption on new improvements that create multi-family housing. The program is based on state law ( ) and described in the Spokane Municipal Code ( ) A couple key things to remember about this program are: • "Multi-family" is considered to be a minimum of 4 dwelling units in one building on one parcel. • The MFTE program is available for properties in designated target areas all over the city, not just in the downtown. The target areas are selected based on criteria designed to support the revitalization of urban centers. • The developer, builder or property owner must apply for this tax exemption BEFORE they apply for their building permit. • Before purchasing a specific piece of property, investors should either contact Susanne Croft, Incentives Specialist (625-6967, ) or come in to use the public access computers at the 3rd floor Current Planning counter in City Hall to double-check that the parcel is actually in a MFTE target area. The MFTE target areas are generally focused on Spokane 's urban centers, found in the Central Business District (CBD) and neighborhood business districts, known as Centers and Corridors (see appendix). Other development-oriented incentives are available in Centers and Corridors as well, such as a Floor-Area-Ratio Bonus for creating public amenities, structured parking and affordable housing (allows more building on a parcel than the zoning would otherwise allow), and reduced parking requirements (see Appendix 7). 22
  23. 23. Historic- Overview. Owning an individual landmark, or property within an historic district, is both a privilege and a responsibility. Property owners can benefit from generally increased property values; local and Federal tax incentives for rehabilitation, and protection from the threat of destructive planning. In return, owners are responsible for helping to maintain the distinctive characteristics that make an historic building or district unique. In order to assist in this effort, the City of Spokane adopted a local preservation ordinance in November 1981; the County quickly followed suit in January 1982. These ordinances established the Spokane City/County Landmarks Commission - a body of private citizens charged with the preservation and protection of Spokane 's historic architectural and archaeological resources. This is accomplished through the designation of historic properties to the Spokane Register of Historic Places, and subsequent design review of exterior changes. ( Business Development - Film Incentive. Motion Picture Competitiveness Program: Businesses who contribute to Washington State 's Motion Picture Competitiveness Program are eligible for a B&O tax credit. This important incentive helps to both strengthen Washington 's economy and enable our film industry to compete with other states that have incentive programs. The program provides the funding for rebates to film production companies that use local talent, goods and services. More information is available. For more information contact Susan Croft (625-6967, ). Business Development - Historically Underutilized Business (HUB) Zone. The HUBZone Empowerment Contracting Program stimulates economic development and creates jobs in urban and rural communities by providing Federal-contracting preferences to small businesses. These preferences go to small businesses that obtain HUBZone certification in part by employing staff that live in a HUBZone. The company must also maintain a "principal office" in one of these specially designated areas. For more information contact Susan Croft (625-6967, ). Competitive contracts can be awarded with a price evaluation preference. The offer of the HUBZone small business must not be 10 percent higher than the offer of a non-small business. In addition, eligible HUBZone firms can qualify for higher SBA-guaranteed surety bonds on construction and service contract bids. More information can be found at Property Development- ADA Barrier Removal Tax Deduction & Disabled Access Tax Credit. Businesses can take advantage of two Federal tax incentives available to help cover costs of making access improvements for customers with disabilities: • A tax credit for small businesses who remove access barriers from their facilities, provide accessible services, or take other steps to improve accessibility for customers with disabilities, and • A tax deduction for businesses of all sizes that remove access barriers in their facilities or vehicles. These two incentives can be used together by eligible businesses if the expenditures qualify. These incentives can also be used on mixed-use projects that combine housing with commercial or office space. It's a great way to bring more customers into your business! 23
  24. 24. Business Development - Community Empowerment Zone (CEZ). The Spokane Community Empowerment Zone (CEZ) program is designed to stimulate economic development throughout Spokane County by offering special tax incentives to qualified businesses in order to create new business and employment opportunities for low-income populations. For more information contact Susan Croft (625-6967, ) A range of B&O tax credits are available to certain types of businesses who locate in and/or employ residents of the Spokane Community Empowerment Zone (CEZ): • Sales & Use Tax Deferral / Exemption • B&O New Job Tax Credit • B&O International Business Tax Credit • B&O Training Tax Credit ( • For more information contact Susan Croft (625-6967, ). To qualify for tax incentives, businesses must: 1. Be engaged in Manufacturing, Research & Development or Software Development. 2. Apply for tax credits prior to ground breaking or hiring. 3. Locate or expand within the designated geographic area; and/or 4. Locate in a county having a designated zone and hire employees who are residents of the zone. More information: ( Property Development- Center and Corridor Incentives. The City of Spokane 's Comprehensive Plan contains a fundamental strategy for Spokane 's physical, economic, and social growth. The plan's “Centers and Corridors” growth strategy directs growth to specific mixed-use centers (neighborhood, district, and employment) and corridors in the City (see Appendix 7). The Central Business District (downtown) is also a center. These areas are intended to: • Bring employment, shopping, and residential activities into shared locations, • Encourage economic activity through new development and rehabilitation, and • Make Spokane a dynamic and healthy urban center. • Development incentives to encourage growth in center areas include: • Mixed-use and higher density development • Broadest range of housing options • Reduced parking requirements • Increased floor area, building heights, and lot coverage • Reduced setback requirements • Credits for shade trees, and • Lower transportation LOS requirements Property Development- Tax Increment Financing (TIF). Tax increment financing or community redevelopment financing is a method of redistributing property tax collections within designated areas to finance infrastructure improvements within these designated areas. Tax- Increment Financing is an economic development tool established by the State of Washington. TIF is used to pay for publicly owned streets, sewers, sidewalks, parks, and other improvements. TIF is considered when local government and a developer define a project with significant public infrastructure requirements that cost more than either party can pay alone. Bonds sold by local government or private financing pay for public improvements, and then a portion of the increased property taxes generated within the district is used to pay back the debt. Seventy-five percent of the increased property taxes is used to repay public infrastructure costs, and 25 percent of the increased value goes to government to pay for public services. Once the debt is paid, all the increased property taxes go to government. More information is available at and 24
  25. 25. Appendix 1 25
  26. 26. Monroe Trade Area Map (Source: CLARITAS INC, 2007) 26
  27. 27. Appendix 2 27
  28. 28. Monroe Market and Demographic Executive Summary City of Spokane Monroe 1 Mile1 United States Spokane County 2000 Population 16,272 195,629 417,939 281,421,906 Population Growth 2000-2006 -2.89% 1.16% 5.53% 5.90% Average Age 33.47 36.68 36.35 36.31 Number of Households/Housing Units4 6,436 81,512 163,611 105,480,101 Household Growth 2000-2006 -3.99% 0.81% 5.71% 6.43% Average Household Income $ 31,304 $ 43,604 $ 48,178 $ 56,644 Median Household Income $ 26,163 $ 32,742 $ 37,784 $ 42,729 Per Capita $ 12,785 $ 18,499 $ 19,233 $ 21,587 Income Master's/Professional/Doctorate 6.01% 9.20% 8.71% 8.86% Bachelor's 9.83% 16.17% 16.31% 15.54% Dwelling Units Owner-Occupied 45.0% 58.8% 65.5% 66.2% Total Families Below Poverty Level 614 5,342 8,889 6,620,945 *Poverty Rate, Families 18.2% 6.6% 5.4% 9.22% 2006 Estimates Population 15,802 197,895 441,037 298,021,266 Population Growth 2006-2011 -1.79% 1.39% 4.39% 4.82% Average Age 34.72 37.55 37.46 37.19 Number of Households/Housing Units 6,179 82,169 172,950 112,267,302 Household Growth 2006-2011 -2.93% 1.03% 4.49% 5.04% Dwellings 1 Unit Detached 58.60% 65.80% 65.90% 60.70% Average Household Income $ 36,174 $ 50,225 $ 56,420 $ 65,849 Median Household Income $ 30,408 $ 37,721 $ 43,789 $ 48,775 Per Capita Income $ 14,614 $ 21,148 $ 22,495 $ 25,129 Population Employed 40.9% 46.0% 47.0% 47.0% Master's/Professional/Doctorate 4.60% 9.2% 8.8% 8.9% Bachelor's 7.50% 16.1% 16.5% 15.7% Dwelling Units Owner-Occupied 71.70% 59.1% 66.1% 66.9% Number Businesses/Household5 .026 -------- -------- -------- Number Businesses/Per Capita .010 -------- -------- -------- Total Families Below Poverty Level 546 5,395 9,251 7,108,962 Poverty Rate, Families2 17.1% 6.6% 5.3% 9.28% Total Retail Sales6 $ 255,976,723 -------- -------- -------- Local Sales Tax Revenue3 $ 5,375,511 -------- -------- -------- 1Center of radius at corner of Northwest, Monroe and Indiana; north boundary at Cora; south boundary at Monroe Street Bridge; east boundary at Astor; west boundary at Nettleton 2 Poverty rate = families below poverty level/total family households 3 Based on .21 Local Sales Tax Revenue Rate 4 Housing units referenced on page 7 of market analysis 5 Businesses per household referenced on page 7 of market analysis 28
  29. 29. 6 Total retail sales references on page 7 of market analysis 29
  30. 30. Appendix 3 30
  31. 31. Monroe Business Inventory ADDRESS STREET BUSINESS NAME 625 Monroe Golden Rule Breaks 703 Monroe Attorneys 704 Monroe Divas Hair Studio 705 Monroe Antiques 709 Monroe Holmes Bros. Bail Bonds 711 Monroe Time Bomb 719 Monroe Millfords 801 Monroe Charleys 815 Monroe Phelps & Associates 817 Monroe Amelias Restaurant 821 Monroe Crescent Machine Shop 902 Indiana Spokane Dance 907 Sharp Havenwood Caregivers 907 Sharp PR 910 Boone Diam. Point? 915 Sharp AMR 920 Indiana Papa Johns Pizza 920 Indiana Coin Laundry 920 Cora Learning Center 924 Sinto Law Enforcement Credit Union 925 Montgomery Attorneys Axel and Briggs 926 Spofford Admirable Motors 926 Monroe Sparky's Subs 926 Indiana Surf & Play 926 Indiana Smokers Outlet 929 Jackson Spokane Sail and Power 1001 Augusta Lillian Conn Antiques 1007 Carlisle Vintage Rabbit Antiques 1007 Augusta The Cottage 1011 Carlisle JLB Construction 1011 Mallon Quick Release Bail Bonds 1018 Fairview Vacant 1018 Shannon Vacant 1018 Northwest Zips 1021 Northwest Perfection Tire 1022 Shannon Spokane Community Housing 1022 Shannon Salem Arms 1023 Monroe S&S Engine Remanufacturing 1025 Indiana ESD 101 1027 Mallon Monroe, State Offices 1103 Northwest Subway 1125 Monroe REI 1201 Monroe Marcis Bail Bonds 1202 Monroe Taco Bell 1215 Monroe Plant World 1215 Monroe Pearl Rose Antiques 1227 Monroe Kirby Vacuum 1229 Monroe Market Vision 1303 Monroe Spokane Art Supply 31
  32. 32. 32
  33. 33. 1306 Monroe Hazen & Jaeger Funeral Home 1322 Monroe Music City 1323 Monroe Louis's Auto Transmission 1401 Monroe Empire Office Machines 1423 Monroe Simpson Realty 1427 Monroe Empire Office Machines 1430 Monroe Hoffman Music 1506 Monroe Vacant (5 doors) 1528 Monroe Auto Solutions 1602 Monroe Zig Zag Bail Bonds 1604 Monroe Vacant 1606 Monroe Vacant 1608 Monroe Canadian National Marketing Inc. 1610 Monroe 4000 Holes 1611 Monroe Rois Furniture 1620 Monroe St. Pauls Church 1625 Monroe Spirit Hair Design 1701 Monroe Vacant 1702 Monroe Napa Auto 1717 Monroe Pjs Bar & Grill 1724 Monroe Aloha Island Grill 1725 Monroe Wildflowers 1802 Monroe Vacant 1818 Monroe McDonalds 1829 Monroe Sharis 1914 Monroe Working Glass Heroes Bar & Grill 1925 Monroe Baskin Robbins 1925 Monroe De Soliel 1930 Monroe Spokane City Credit Union 2001 Monroe New Destiny Tabernacle 2010 Madison Vacant 2011 Monroe Waves Hair 2011 Madison Shamrock Tattoo 2015 Monroe Vacant 2019 Monroe Hot Rods 2020 Monroe Silver Showroom 2105 Monroe Hearn Bros Printing 2106 Monroe Border to Border Thrift 2111 Monroe Bledsoe Karate Company 2126 Monroe Casey's Restaurant 2127 Monroe Watson Management 2201 Monroe Hi Neighbor Tavern 2202 Monroe Cenex Gas 2217 Monroe Monroe Coin and Collectibles 2218 Monroe Gilded Lily 2310 Monroe Adult Education Center 2311 Monroe Café Delicio 2317 Monroe Vintage Rabbit Antiques 2319 Monroe KPBX Radio 2407 Monroe Wash & Dry Laundry 2410 Monroe Christ Kitchen 33
  34. 34. 2415 Monroe Funky Threads 2416 Monroe Ducs Tailor 2417 Monroe Almar Appliance 2418 Monroe Burns Doors 2424 Monroe AMS Oil 2425 Monroe All American Tattoo 2501 Monroe Azars Restaurant 2510 Monroe Upscale Home Furniture 2520 Monroe Martins Champion Auto 2525 Monroe Fred Appliance 2601 Monroe Fred Appliance 2606 Monroe Hedge House 2607 Monroe Unified Groove Merchants 2611 Monroe Janas Antiques 2614 Monroe Vacant 2618 Monroe Vacant 2624 Monroe Rich's Service and Tire 2625 Monroe Waffles Plus 2706 Monroe Extreme Caffeine 2711 Monroe CarQuest 2713 Monroe Nails with Pizzazz 2713 Monroe A Legacy of Massage 2723 Monroe Moezy Tavern 2726 Monroe K&L Manufacturing 2801 Monroe Thomas Gerard & Associates 2802 Monroe Tai Chi 2808 Monroe Libby Photography 2810 Monroe Fidos Dog and Cat Grooming 2814 Monroe Corbin Cleaners 2823 Monroe Spokane Cash Register 2824 Monroe St. Vincent de Paul Thrift Shop 2901 Monroe Big Steak & Seafood 2904 Monroe Vacant 2910 Monroe Dynamic Life 2911 Monroe Hoover 2916 Monroe College Road Recording 2919 Monroe RH Cook Realtors 2923 Monroe Vacant 2925 Monroe Diamonds in the Ruff 2926 Monroe Hub Tavern 2927 Monroe Vacant 34
  35. 35. 2929 Monroe A Stamp for All 2931 Monroe Cricket 3004 Monroe King Yen 3011 Monroe Tune Tech 3017 Monroe Bead & Treasures 3024 Monroe Bakery Outlet 3036 Monroe Area 58 3039 Monroe Gas Mart 3103 Monroe Inland Photo 3104 Monroe Custom Body 3107 Monroe Aardvark Stained Glass 3111 Monroe Creative Expressions 3121 Monroe Monroe Street Power Wash 3204 Monroe Zips 3209 Monroe Pink Poodle Pets 3221 Monroe Ignition Interlock 3301 Monroe Dans Barber 3315 Monroe Bill Import Auto 3316 Monroe Skippers 3320 Monroe Pawn One 3400 Monroe Herb Village 1026/1028 Shannon Hot Doz Grooming 1225/1223 Monroe NW Building Maintenance 1601/1603 Monroe Richard Agman Law Office 1705/1707 Monroe Carpet Outlet 2217/2209/220 Monroe Vacant 5 2909/2907 Monroe Julie Buttons Monroe Vacant Monroe Suzis Relaxation Spa Note: The italicized/bold businesses are listed as historic properties 35
  36. 36. Appendix 4 36
  37. 37. 37
  38. 38. 38
  39. 39. 39
  40. 40. 40
  41. 41. 41
  42. 42. 42
  43. 43. Criteria for Determining Facade Condition Excellent: no evident need for repair Good: tidy and no major repairs required Fair: some peeling, cracking, and stains, but nothing that requires immediate attention Poor: abundant peeling, cracking, stains, and/or missing mortar from blocks, requires repairs Failing: missing siding, chunks of stucco missing, and buckling walls, immediate repairs required 43
  44. 44. 44
  45. 45. Appendix 5 (Monroe Building Inventory Data Currently Not Available) 45
  46. 46. Appendix 6 46
  47. 47. 47
  48. 48. 48
  49. 49. 49
  50. 50. 50
  51. 51. 51
  52. 52. 52
  53. 53. 53
  54. 54. 54
  55. 55. 55
  56. 56. Appendix 7 56
  57. 57. 57
  58. 58. 58
  59. 59. Appendix 8 59
  60. 60. Monroe 1 Mile RMP Opportunity Gap - Retail Stores 2006 3 Method 1 Trade Method II Trade Difference NAICS Industry Title Area Sq. Foot Area Sq. Foot Between Methods Demand1 Demand2 4413 Automotive Parts/Accessories/Tires Stores (29,036) 9472 (38,508) 44211 Furniture Stores (33,325) 8658 (41,983) 44229 Other Home Furnishing Stores (38,581) 6901 (45,482) 44311 Appliance, Television, and Other Electronics Stores (19,115) 8282 (26,016) 44312 Computer and Software Stores (2,846) 1352 (11,129) 44313 Camera and Photographic Supplies Stores (2,276) 436 (3,628) 4441 Building Material and Supplies Dealers (44,554) 32021 (44,990) 4442 Lawn and Garden Equipment and Supplies Stores 685 5708 (31,336) 4451 Grocery Stores (16,519) 47715 (22,227) 4452 Baked Goods Stores 1,898 135 (45,817) 44531 Beer, Wine, and Liquor Stores (17,346) 3708 (17,481) 44611 Pharmacies and drug stores (7,544) 16835 (24,379) 44612 Cosmetics, Beauty Supplies, and Perfume Stores 840 2237 (2,868) 44613 Optical Goods Stores 581 766 (16,254) 44619 Other Health and Personal Care Stores (12,574) 1017 (14,811) 44711 Gasoline Stations with Convenience Stores 3,211 4872 2,445 44811 Men's Clothing Stores 1,402 4480 385 44812 Women's Clothing Stores 4,195 8839 (677) 44813 Children's and Infants' Clothing Stores 1,163 2782 (3,317) 44814 Family Clothing Stores 11,095 7210 2,256 44815 Clothing Accessories Stores (1,603) 356 (4,385) 44819 Other Clothing Stores (3,863) 1141 (11,074) 44821 Shoe Stores 5,347 4908 4,991 44831 Jewelry Stores (14,272) 1710 (15,413) 44832 Luggage and Leather Goods Stores 174 215 (4,734) 45111 Sporting Goods Stores (67,868) 5045 (69,578) 45112 Hobby, Toy, and Game Stores (5,056) 4283 (5,271) 45113 Sewing, Needlework, and Piece Goods Stores (1,030) 2147 (6,075) 45114 Musical Instrument and Supplies Stores (31,948) 822 (36,231) 45121 Book Stores and News Dealers (2,082) 3531 (5,613) 45122 Prerecorded Tape, Compact Disc, and Record Stores (5,518) 2184 (2,904) 45311 Florists (1,635) 921 (9,050) 45321 Office Supplies and Stationery Stores 2,952 3846 (3,819) 45322 Gift, Novelty, and Souvenir Stores (3,602) 2611 2,031 45331 Used Merchandise Stores (41,787) 2486 (7,448) 1Method 1: 2007 CLARITAS INC. Claritas' RMP data is derived from two major sources of information. The demand data is derived from the Consumer Expenditure Survey (CE Survey), which is fielded by the U.S. Bureau of Labor Statistics (BLS). The supply data is derived from the Census of Retail Trade (CRT), which is made available by the U.S. Census. 2 Method 2: Board of Regents of the University of Wisconsin System, d/b/a Division of Cooperative Extension of the University of Wisconsin- Extension. Sales per square foot data are available from the publication Dollars and Cents of Shopping Centers, 2002, Urban Land Institute, Washington, DC. The assumptions can be over-written using more relevant local data. 3 RMP = Retail Market Power 60
  61. 61. How to use data sets together Estimates of Retail Sales per Square Foot GLA The data in the following table on the estimates of retail sales per square foot should be used in conjunction with the results of the demand calculator (see Garland and Monroe when the district is putting together its recruitment strategies, this data will help decision makers decide if the suggested square footage results will be a viable enough business. For example, the demand calculator results may show that there is only a demand for 100 more square feet of a particular business sector, intuitively we know that 100sq feet of any one business type should not be used to recruit a new retailer but rather maybe someone could expand a product line to fill the demand. However, the analysis and recommendations becomes less intuitive if the demand calculator results are for say 1,000sqft. of a particular sector. Then we would need to use consumer surveying and the information below to help determine if that sector could be a viable addition to the district before we develop recruitment plan. For example, we would take the 1,000sqft. result and multiply it with the dollars in the Average* column below for that specific business sector: 1,000 X $159.81 (Automotive) = $159,810 in annual sales. Automotive parts may or may not turn out to be viable in that space. More research would also need to be done to compare automotive store sizes with one another. 61
  62. 62. Average of US Neighborhood, Community and Regional Shopping Centers Based on the 2002 Dollars and Cents of Shopping Centers, Urban Land Institute NAICS Description Average* ULI Descriptions/Notes 44131 Automotive parts and accessories stores $ 159.81 Automotive (TBA) 44211 Furniture stores $ 214.31 Furniture 44221 Floor covering stores $ 281.47 Floor Coverings 44229 Other home furnishing stores $ 230.14 Home Accessories 44311 Appliance, television, and other electronics stores $ 366.22 Electronics-General 44312 Computer and software stores $ 495.02 Computer/Computer Software 44313 Camera and photographic supplies stores $ 397.25 Cameras 4441 Building material and supplies dealers $ 228.43 Home Improvements and Hardware 4442 Lawn and Garden Equipment and Supplies Stores $ 228.43 ** 4451 Grocery Stores $ 353.55 Supermarket 445291 Baked goods stores $ 336.38 Bakery 445292 Confectionery and nut stores $ 320.05 Candy and Nuts 44531 Beer, wine, and liquor stores $ 265.88 Liquor/Wine 44611 Pharmacies and drug stores $ 352.43 Drugstore/Pharmacy 44612 Cosmetics, beauty supplies, and perfume stores $ 331.42 Cosmetics/Beauty Supplies 44613 Optical goods stores $ 353.61 Eyeglasses-Optician 44619 Other health and personal care stores $ 353.55 ** 44711 Gasoline stations with convenience stores $ 1,221.82 Service Station 44811 Men's clothing stores $ 229.07 Men's Wear 44812 Women's clothing stores $ 281.11 Women's Ready-to-Wear 44813 Children's and infants' clothing stores $ 304.18 Children's Wear 44814 Family clothing stores $ 274.84 Family Wear 44815 Clothing accessories stores $ 250.00 ** 44819 Other clothing stores $ 250.00 ** 44821 Shoe stores $ 217.72 Family Shoes 44831 Jewelry stores $ 574.45 Jewelry 44832 Luggage and leather goods stores $ 380.74 Luggage and Leather 45111 Sporting goods stores $ 218.16 Sporting Goods-General 45112 Hobby, toy, and game stores $ 245.22 Toys 45113 Sewing, needlework, and piece goods stores $ 92.01 Fabric Shop 45114 Musical instrument and supplies stores $ 191.64 45121 Book stores and news dealers $ 162.22 Books 45122 Prerecorded tape, compact disc, and record stores $ 220.14 Records and Tapes 45311 Florists $ 228.57 Flowers/Plant Stores 45321 Office supplies and stationery stores $ 245.00 Office Supplies 45322 Gift, novelty, and souvenir stores $ 190.92 Cards and Gifts 45331 Used merchandise stores $ 100.00 ** 45391 Pet and pet supplies stores $ 189.20 Pet Shop 45392 Art dealers $ 326.07 Art Gallery Source: Sales per square foot data is from the publication Dollars and Cents of Shopping Centers, 2002, 62
  63. 63. Urban Land Institute, Washington, DC. * Average of US neighborhood, community and regional shopping centers. ** No data available. Based on other stores. 63
  64. 64. Appendix 9 64
  65. 65. Population and Households Population and household data allows you to quantify the current market size and examine future growth. Population is defined as all persons living in a geographic area. Households consist of one or more persons who live together in the same housing unit, regardless of their relationship to each other (including all occupied housing units). Typically, demand is generated by individual or household purchases. Households can be categorized by size, composition, or their stage in the family life cycle. Members of the family influence a household purchase, such as a new computer. Anticipated household or population growth may indicate future opportunities for a retailer. Age Age is an important factor to consider because personal expenditures change as an individual ages. Drug stores and assisted care services flourish in areas with a large elderly population. Accordingly, drug stores often do well in communities with a larger number of people over the age of 65. Additionally, realizing and catering to the needs of an aging population can be beneficial to any retailer. Toy stores, day care centers, and stores with baby care items are successful in areas with many children and infants. Clothing stores and fast food establishments thrive in retail areas that contain a large concentration of adolescents. Theatres serve a broad section of the population; however, specialized entertainment and recreation options can target certain age segments. Income Household income is a good indicator of spending power of residents. Household income positively correlates with retail expenditures in many product categories. Retailers may consider the median or average household income in a trade area or seek a minimum number of households within a certain income range. Another common practice is to analyze the distribution of household incomes. Discount stores avoid extreme high or low-income areas. Traditional department stores focus on markets with incomes over $35,000, while some specialty fashion stores target incomes above $75,000. A few store categories including auto parts are more commonly found in areas with lower household incomes. Using income as the sole measure of a market's taste preference, however, can be deceptive. Education Education is another way to determine the socio-economic status of an area. Because income increases with advancing educational attainment, many retailers focus on income level rather than education. One exception is bookstores that are often sited by developers based on the number of college-educated individuals in the trade area. Similarly, computer and software stores are often located in areas with high levels of education. Employment Many retailers use the concentration of white or blue-collar workers as another gauge of a market’s taste preferences. Specialty apparel stores thrive on middle to upper income areas and above average white-collar employment. Second hand clothing stores and used car dealerships are successful in areas with a higher concentration of blue-collar workers. Office supply stores and large music and video stores are especially sensitive to the occupational profile. These retailers target growth areas with a majority of white-collar workers. 65