Learn more about the facade improvement projects, including their potential positive impact.

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2. Welcome to today’s deep dive webinar. This webinar is part of our ongoing series which
addresses specific informational and instructional topics on issues facing communities. Past
programs include examples of sales & use tax, BID & TIF use.
Today’s topic is important and relevant to businesses and communities throughout the
state. The value and impact of quality façade improvement projects have on property
performance, rental rates and the businesses within them is an important factor in
achieving a successful downtown revitalization project. Facades represent one of the most
publicly visible elements of a downtown, and improving this aspect of a community, if done
correctly, can do much more than boost morale.
Today we are pleased to present the findings from our 2014 Façade Improvement Impact
Analysis, including a summary of the impacts and trends identified as a result of façade
improvement projects, information on several specific projects which represent different
types of projects and impacts, and an overview of how these projects were accomplished.
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3. I am pleased to have with me today three panelists to cover this topic. Our presenters
today include Chris Naumann, Amy Greil and Dayna Sarver. Chris is the current executive
director of Downtown Kenosha, one of the partners that helped identify and launch this
study. He will provide brief remarks on the importance of high quality design in developing
a compelling and vital downtown fabric. Amy Greil and Dayna Sarver are both with the
University of Wisconsin Extension and together with Joe and myself, are the authors of the
2014 study.
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4. This study is a product of discussions had between Bill Ryan, a specialist with the UW-
Extension Center for Community Economic Development, myself and the previous Exec.
Director of the Kenosha Main Street Program, Violet Ricker.
We knew that vacancies in the downtown, and underperforming businesses were of
growing concern and we wanted to know what data would help the situation. Violet had
been citing an old University WI-Extension study from 1986 entitled ‘Economic Effects of
Storefront Improvement: A Report of a 1096 Study of WI Retail Businesses Which Had Made
Façade Improvements during the Previous Five Years.’ Robert Dick, Bruce Murray and Ayse
Somersan were the researchers and authors of the study. Seeing it was so old, I had to
hunt down a source of this report, and came upon a design firm from New England that
often cites this study and had access to the full report. A special thank you to Kathy Frazier
for her assistance in locating the original study so we could refresh the research through
the collection of present-day storefront improvement case studies.
So we set out as educators from UW-Extension, Bill Ryan, Dayna Sarver, Amy Greil and also
WEDC Main Street program, Joe Lawniczak and Errin Welty, to investigate the present-day
impacts of downtown storefront improvements through the collection of 24 case studies
from around WI representing a cross section of small/mid/large sized communities.
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5. Typical storefront improvements include; awnings, brink pointing, exterior doors, exterior
lighting,, exterior painting, signs, windows/glazing, woodwork… etc.
Prior to our study, there was inconclusive evidence whether these downtown storefront
improvement projects provide an adequate return to property owners, outside investors or
public funding entities.
If indeed there are positive returns, what are those returns? Are they economic returns
(such as increased sales revenue and rental rates) or are they cultural returns (increased
community pride/historic appreciation).
Our research helped us deduce a number of findings that we’ll cover in more detail through
this presentation that relate to’ increases in number of first time customers, increases in
sales, increased rental revenues, spaces converted to better uses, simultaneous interior
redesign, multiple funding sources, increased building value, the catalytic nature of
improvements and community pride.
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6. Market analysis is an important component. Storefront improvements cannot save a
business with faulty business plan.
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9. 16 did masonry work, 6 metal repair work, 10 did would repair work, 19 painted, 4 did re-
siding., 14 replaced signs, 15 removed past alterations, 16 repaired/replaced windows and
doors, 11 removed or replaced awnings and canopies.
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10. The building on the left was built at the turn of the century. After the original center
building was lost to a fire, the owner purchased the vacant lot and built the infill
building in 1983. The building on the right was built in 1889 and restored by the
owner in 1989. All three buildings are open to each other and house the retail gifts
store, Country Treasures. Joyce Pugh has done work on these three buildings in
stages since 1983. Wisconsin Main Street Design Specialist Joe Lawniczak drew up
the idea of a false upper facade for the middle building to connect it in height and
character with the neighboring buildings.
"There was an unbelievable amount of support from the community for the project.
Our downtown and new building construction moved along more quickly than
planned, and I feel that my improvements might have helped to give impetus to
those projects:'
- Joyce Pugh
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11. In this case, the economic benefits included a 10% increase in first time customers and 2%
increase in sales. They invested 130,000 into removal of metal façade on the building to
the left, tuck-pointing and window replacements also on the building to the left. A new
false second story brick façade was added to the center building and the entire front of the
two buildings was redone with larger storefront windows and doors. Other improvements
included paint, signage and awning removal.
Improvements were funded through a regional business fund and low-interest Main Street
loan. Renders were completed by Main Street Design Specialist Joe Lawniczack…
This is a unique project in that it used the false façade replace/integrate a space that was
damaged by fire. The false façade served to unify the historic character of the three
buildings. Beautifully done.
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12. Constructed in 1857 by Charles Lewis Fellows, a river boat captain on the Ahnapee
River, the building has always served as a hotel. In 1905, Frank Slaby constructed
the second wing, which is now the three-story brick structure and entrance of the
hotel. Slaby changed the name of the building from Ahnapee House to Hotel
Stebbins in honor of his friend, the late Wisconsin State Senator DeWayne Stebbins.
Kristine Ruehl purchased the business in July 2005, and had always intended to
restore the building to its early twentieth century grandeur.
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13. This project created an increase in sales as the hotel and restaurant say an increase in first-
time customers. They used a bank loan to secure the funding.
This project set out to remove a 1960s façade to reveal the full integrity of the building
design, exposing the stone and brick work around the base of the building. Once removed,
masonry repairs were made and curbing was added to seal out moisture.
Exposed beams were repaired and unique steel scroll work was sandblasted/repainted.
Exterior doors were removed in the entry way so an awning could be installed… new
signage was added. All for the bargain price of 45,000.
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14. Although the building needed repairs, financing wasn't readily available until
Menomonee Falls created the Economic Development Master Fund program. This
50/50 matching program was just what Brad Posnanski needed to do the upgrades
for his building.
"The finished project was amazing. I had no less than 30+ positive comments. They
would say, 'love the great job you did on your building: Others would say that they
noticed my business now more than ever before:'
- Brad Posnanski
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15. This project features 20,000 investment that included minor tuck-pointing, soffit
replacement, four windows, two doors and new canvas canopy... New sign and some
painting. This project is significant as the property owners claims an increase of 30% in
residential rents due to the renovation.
A 50/50 match program helped shore up the needed funding.
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Fix Development is a commercial real estate developer committed to community,
economic, and environmental stability. CEO Juli Kaufmann has lived and worked in
historic Walker's Point since 2005. Working by the Fixer's Manifesto of "If it's
broken, fix it!" and "If it's not broken, improve it;' Kaufmann saw the potential in
this building and how it could serve the community.

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This is a unique example of rehabbing a former manufacturing building into a restaurant
use creating a multiplier effect for the area: It compliments other businesses such as the
Water Council, Indulgence Chocolates, and Black Sheep.
This project encompassed nearly a 100,000 investment in new storefront windows, new
door, interior atrium, surface painting, new LED lighting and new awning. It was funded
through a City of Milwaukee Façade Grant.

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The Smith Building, built in 1879 in the Italianate style, was purchased by the Bemis
family in 1995. Bemis manufactures bath supplies and desired to have a downtown
presence. The objective of the restoration was to take the building back to its
original 1879 character. The project followed the Standards of Historic
Preservation. It has become an iconic symbol of historic restoration in Wisconsin
and currently serves as Wisconsin Main Street's official logo.

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This historical restoration provided an ideal for a downtown retail space for a local
manufacturer.
1995 this project began. The interior floors, stair case, interior walls were rehabbed
simultaneously to the exterior work—and beautifully done. Cornice high windows were
added at street level, and exterior bring was washed to expose original cream City brick—
notice they did not paint the brick! The upper windows were also restored with respect to
the Italianate architectural style.
The price tag for this project was upwards of 650,000 for both interior plumbing and
electrical work. Exterior work, financed through a bank loan and state/fed historic
preservation tax credits.
There are many reasons to love this project but I love it most because it is my hope that
local Kenosha manufacturer’s also see the potential in creating a downtown retail location
in our historic downtown.

20. Joel owns North Bay, a favorite stopping place of local and tourists for anything
from fishing gear to a cold beverage. The Downtown Green Lake Renewal Project
awarded Joel with an anonymous gift for the purpose of improving his building's
facade. The work on his building has given Joel positive feedback and inspired
others to invest in their properties. Jo Ellen Madden, Green Lake Renewal Project,
says good will is getting passed around.
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21. This project was financed through an anonymous donor that encouraged the property
owner to invest in his building… It cost no more than 2,206 dollars to repaint the exterior
and hire a local artist to paint a mural on the side of the building. It was financed through
the Downtown Green Lake Renewal Project Funds and spurred an 10-20% increase in first-
time customers.
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22. Jeremy and Kelly Belot found a dilapidated tavern near their home and the new
Menomonee Valley branch of the Urban Ecology Center. Infusing it with a new
vision, the building was converted into an eco-friendly childcare center focused on a
healthy, sustainable lifestyle on the main floor, and a residential unit on the second
floor. The backyard became a natural play-scape, and the interior received a full
renovation.
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23. This previous tavern got quite a facelift when it was converted to a childcare center, Tiny
Green Trees! It is most significant for the extensive list of financing mechanisms employed;
Layton Boulevard West neighborhood CD fund, Me2/Focus on Energy, Milwaukee
Downtown Development Corp, Local bank loan.
The owners completed a full renovation of property, including extensive landscaping and
roof replacement. They resided, installed cedar wood trim, replaced windows and doors
and created a custom-made sign.
A vacant, blighted building increased in property value—Tax assessment increased $80,000
after renovation. It also served as a catalyst for the area.
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24. Sam Meyer sat across the street during an event in downtown Fond du Lac thinking,
"If I have to stare at this old building a II day, I'm going to buy it and fix it up.” Built
in 1873, the beautiful arched windows had been covered over with a false facade.
The Wisconsin Main Street Design Specialist provided architectural renderings for
the project. The City of Fond du Lac designated the building a historical structure
and the Wisconsin Historical Society granted the project historic tax credits.
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25. This restoration doubled the building’s market value, funded by the Downtown Fond du Lac
Façade Improvement Grant, Bank Loan and historic preservation tax credits—tallying
28,000 of investment dollars.
By removing the false façade, the plaster over the brick was restored and the cornice was
recreated. The beautiful arched windows were also restored as well.
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26. Constructed in 1854 and 1855, the set of buildings were generally regarded as
eyesores. The Wisconsin Main Street design specialist provided an artist's rendering
of the building's historical character. The building on the right was originally a
firehouse. Based on historical photos, the owners restored the two classic fire
station archways in 1989. In 1999, owner Dorothy Schueffner expanded into the
adjoining structure. Schueffner has
reaped dividends by creating additional seating in the lower level and a private
dining area above.
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27. This reconstruction and expansion into an adjacent building doubled the owner’s revenue!
This is a very high quality rehab project that found a way to integrate its historic use into
the building use/theme (a fire house).
New siding and windows were installed in conformity with the Greek Revival-style buildings
in the area.
The cost for improvements was 200,000 for interior and exterior improvement, financed
through a bank loan. The economic benefits of the rehab were 25% increase in first-time
customers, whereas unoccupied buildings is now income-producing, while the increased
seating area doubled sales.
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28. Lynn Truckey, owner of Steele Street Floral, worked with Wisconsin Main Street
Design Specialist Joe Lawniczak to restore this building to the glory of a Painted
Lady. Painted Ladies usually use three or more paint colors on the features of
Victorian or Edwardian structures to highlight their architectural elements.
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29. This is one example where the cultural impacts of the renovation out way any economic
impacts. Pedestrian traffic and public image of the community has improved due to this
$30,000 renovation.
Nearly all of the original windows had been removed or made smaller in the past, so the
renovation sought to bring back the full-size windows and open the building to greater
natural light. The door jams were reworked to accommodate a new French main entrance.
Detailed painting on architectural features were also completed.
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30. 80% of businesses experienced an increase in first-time customers. Many also reported
that adjacent businesses experienced a similar phenomenon, driven by additional foot
traffic in the immediate vicinity.
90% of businesses experienced an increase in sales, with an average increase of 20%.
Restaurants benefitted the most, followed by personal and professional service businesses.
However, not all businesses experienced an increase in sales.
Some of the largest gains came from projects where landlords were able to rent out spaces
that had previously been vacant for some time. Several property owners also reported
increased ability to rent out upper floor residential units in properties after the façade
improvements.
These findings are consistent with those from the 1988 study.
Several buildings were repositioned to support tenants currently supported in the market,
which had a positive impact on the property and community. These projects nearly always
included interior and exterior improvements.
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31. Even projects with a small investment experienced positive returns. Total project costs for
projects ranged from less than $3,000 to more than $600,000 and included all sizes and
types of buildings.
Half of the projects studied utilized some form of local incentive grant or loan projects to
finance a portion of the improvements. Nearly all projects incorporated multiple financing
sources.
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35. As Amy and Dayna mentioned, more than 50% of the projects included in the case study
analysis utilized some form of public financing assistance to complete their project.
However, not all façade programs are created equal. Maximizing the benefit and use of a
program requires careful planning and development to design and implement a loan or
grant program that will be most successful. For instance, a program emphasizing aesthetic
improvements to awnings and signage will be of little use if most buildings in the district
are in need of roof and masonry repair, which must be completed prior to any cosmetic
improvements. One of the best ways to explore the needs in your district is to survey
property owners about their desired projects – what would they do with an extra $10,000?
What is preventing them from pursing these projects currently? Understanding the needs
and limitations in your marketplace can go a long way toward making a program successful.
For instance, if your district only has small storefronts and most prospective tenants are
looking for restaurant space or large scale spaces (i.e. furniture stores), improving only the
façade of a building will have limited impact on the economic function of the downtown.
Similarly, if property owners are unable to raise matching funds, or if improvements will
trigger additional work to address code issues such as accessibility, these factors will need
to be considered when designing a responsive loan/grant program.
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36. Façade loan and grant funds can take a variety of forms beyond just the traditional
aesthetic improvements. The five general types of funds profiled here can be used
separately or in combination to address issues found within individual communities.
Traditional funds are perhaps the most common types of programs, funding signage,
awnings and other front-facing exterior improvements.
Maintenance and renovation loans still focus primarily on the exterior of a building, but
may also allow for a portion of funds to address critical structural or functional issues to
help preserve or stabilize buildings. As these elements typically are more costly, these
funds are often larger, and tend to favor loans over grants, sometimes with the opportunity
for forgiveness after a period of time.
Underutilized space programs focus on the interior commercial space (typically first floor
only) in a building. It allows building owners to renovate a space that may be lagging on the
market by addressing critical issues that impact the appeal or function of a space to
prospective tenants, making it more competitive in the marketplace. This can include
cosmetic upgrades as well as functional enhancements.
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37. The final two programs are less common, and also focus on internal spaces.
Business focused funds are designed to fill vacant spaces by providing a flexible funding
stream for new businesses to a district. By helping offset some of the costs associated with
internal improvements and/or funding working capital, tenants are able to devote time and
energy to improving the space or may consider a space which otherwise requires more up
front work, therefore delaying opening of the business (and limiting revenue during this
period).
Upper floor funding is important in areas where upper floors may be vacant or
underutilized. Improving cash flow to property owners from upper floor units can help
reduce the reliance on lower floors to support a building single handedly and also providing
capital that can facilitate improvements to structural or first floor spaces. Additionally,
improved upper floor spaces have the added benefit of boosting the size and quality of the
immediate customer base, further enhancing downtown’s economy.
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38. Due to the wide variety of objectives and focus of loan/grant funds, they can be started
using funds from a variety of sources. Ultimately, it is important to pick a funding source
that matches this intent. Many of these programs may be Wisconsin-specific, though other
states have similar programs.
Tax Increment Finance (TIF) = flexibility of use, wide variety of strategies provided it is
included in the project plan
Bank Partnerships – i.e. matching funds = leverages additional dollars, potential to
outsource loan administration, provides enhanced marketing
Community Development Block Grants (CDBG) = funds projects helping targeted
populations (low income), adding jobs
Leveraged funds (i.e. pooled funds with comparable partners such as WWBIC, Industry
Funds, Economic Development Entities) = additional leverage, potential outsourcing of
administration, ability to focus on and market to specific business types
Targeted funds (i.e. proceeds from property sale, capital from closing TIF district)= potential
ongoing/repeat source to recapitalize, provides program flexibility
Previous Loans/Grants = maximize funding mechanism by utilizing future repayments of
loans or grants to capitalize/reseed loan/grant fund. Some entities such as USDA have
programs designed for this purpose, but many granting entities allow this use.
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40. We are always looking for topics of interest to our communities. Please submit your ideas
or topics for future consideration.
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