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HomeMy WebLinkAbout01.22.07 Joint EDA and Council Packet The Farmington EDA's mission is to improve the economic vitality of the city of Farmington and to enhance the overall quality of life by creating partnerships, fostering employment opportunities, promoting workforce housing and by expanding the tax base through development and redevelopment. . AGENDA Farmington City CouncillEDA Joint Meeting Strategic Planning Monday, January 22, 2007 City Council Chambers, City Hall 5:00 - 8:30 PM Members 1. Call Meeting to Order (5:00) - working meal/light supper provided Todd Arey ( Chair) 2. Approve EDA Bills (5:05) Paul Hardt (Vice Chair) 3. Evening overview (5:15) - Craig Rapp . Attachments o Economic Development and DowntoWn Revitalization o Interview Summary YVOlU1e Flaherty Erik Starkman 4. Addressing Strategic Challenges - Actions, Timelines, Accountabilities (5:20-6:35) Chad Collignon . Christy Jo Fogarty City Council 5. Break (6:35-6:50) David McKnight City Council 6. Developing Action Steps, Timelines, Accountabilities (7:00-8:00) 7. Summing Up/Next Steps (8:15-8:30) Citv Staff Representatives 8. Staff Reports . Downtown Promotion Reporter newsletter Peter Herlofsky City Administrator 9. Adjourn (8:30) Tina Hansmeier Economic Development Specialist \'......--..~- 325 Oak Street Farmington, MN 55024 Phone: 651.463.7111 Internet: www.ci.farmington.mn.us . K:\HRA-EDA\Board Agendas (2007)\012207 joint CC EDA Agenda.doc . . . 1 t DATE I I 12/08/2006 12/29/2006 12/29/2006 12/29/2006 12/29/2006 12/29/2006 12/29/2006 12/29/2006 12/31/2006 INVOICE LIST FOR EDA MEETING JANUARY 22, 2007 AT 7:00 p.m. I l $ $ $ $ $ $ $ $ $ DESCRIPTION XCEL ENERGY - 142 ELM ST TODD AREY PAUL HARDT YVONNE FLAHERTY ERIC ST ARTKMAN CHAD COLLIGNON CHRISTY JO FOGARTY DAVID MCKNIGHT CAMPBELL KNUTSON Page 1 $ AMOUNT I 7.86 595.00 510.00 390.00 480.00 480.00 450.00 420.00 306.00 $ 3,638.86 tAPPROVAL~ U Xcel Energy' Northern States Power Company Please Return This Portion With Your Payment ::Ii:Y:#ir!I~W#:l.iW!,t:::t :!!::::liti:!!W1UW%lirni!:!:j;: !!:j{:rAfu~iil:II,!~~~jmt::I: ;::I:I::!!:lmiWl!~mlsmiWlt::I::jI:j 51-4874009-4 01/08/2007 $16.22 Auto Pay Do Not Thank You ! Return . P.O. BOX 9477 MPLS, MN 55484-9477 AT 01 059630 765506349 A**3DGT 1.1.1..1.1.11.....1.1.1..1.1111..11.1...1.1..,..,.,.1.,,"'.11 FARMINGTON CITY OF ATTN: AeCTS PAYABLE 325 OAK ST FARMINGTON, MN 55024-1374 51010807rl48740094rlOOOOOOD1b22000D0001b22 Detach and Retain This Portion For Your Records Balance of Payments Forward <:harges Current Balance -- - - - - - - - - - $15.91 - - $15.91 CR - - $0.00 - $16.22 - $16.22 == - - . ":'-'-"":'::',..::,.:',' , '. ..:.: 'H)remiseldentifier:: ...... '.' . ..": 142 ELM ST ,<. ..... . ..~.i. 201 SPRUCE ST; . Current ~ $7.86 $8.36 $16.22 ~ ./ ';-;,./.:.:.":';'-,.'" :'i-;' ;_:',', . ,,:". ;-,_ (, " .. 'i_~' , .,,;.,. .....~. ~l].TH..O'a..IZ~.T.ION . . '. , ," ", .. . - .. 'n"-';'" " .. ,';'. '., " . '.. _~ / .. , '. .., . .- .... .....,. '. .........:ii ...... ......',i~....'......... ~.'.'. ~ .'. '. .'. ......... . J,..' 0/ _ . .' ..' ..: '. . pR .~ ".;~c.' / DA: Lf' '. -~. '. $ SU-.~~ @ Xce! Energye FARMINGTON CITY OF ATTN: ACCTS PAYABLE 325 OAK ST FARMINGTON, MN 55024-1374 ;j~ :::~~II~~~!~II~':'!::'i;:':.lm~~I'I!~lm:.:.;::;~;)\ 01/0812007 $16.22 ff/fJ03QLj 'e 1 of 3 Statement Date: 12/08/06 Your bill is paid through Xcel Energy's Auto Pay program. On your due date, the amount is withdrawn from your financial institution and immediately credited. StatemEmt # 92979012 See back of bill for "1 ore information. Account #: 51-4;814009-4 1.~r-b X Y- X- X y. x x X- x X ex x x x x e o I 00 ~qq ,c2 ()(f) {;. -k:.!JA - . * (See note below) ATTENDANCE FORM - CHECK MEM:BERS PRESENT Ol~~ {4-jctr17{Jl, /5 -- I DATE 7Qafl'r I . \ I ,&'ct<--<-I - ,Yvonne Crfad .;> ~~ G.....$r .4 re {J~JYlllJ } j "L i -.L/a ip;-/u (7 ~/;;""'r1"" 3icut, frN7.<>7 / /9" ~& --.J - J J y- 'x -t" ;.( d.h7/o~ X )( X X .3~/~c. Y' X X X X f h .~c; V Y. V X y (/ }f5 kc; )( y X X if .6 (../ /~,~ V )( V .)( 5~h,r.::: )( , y y )( X .5 h~ /oe, V y V ,X' y u. hc,k )( y y y X 'J h; ~t: X y X X X ~h.;j/. 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I 390 * Please fin in Board/Commission at top, enter mtmbers names across and meeting dates down. ~(1..)D. ~,~O\ ~Qfb x Y- X- X X. , , )<. X- X X X X- X X X X o IOI,lY. ,,-J (Jt!) c;. ~.oA - . * (See note below) ATTENDANCE FORM:- CHECK ME:MBERS PRESENT /5 uATE 7@dd' I pq U-,( I Yvonne I e4Gd ~/~/d. I 6 -r $ c-. I Arl"'" II ffL I ;: la.l~r-I,-, 1(7.o/;Jr;;m',-n sfark.nzd...-> / /9" ~& .J J \J V 'L. X X ~~7/oc, X X X. X 3~"/ ~c. V )( X X X fI h' ~r; y y V X- V (/ J'f5kc' )( X- X X (j hl/k X" " IV .)( 5h~~ )( I Y Y )( 'X ~/~~ J{/ 'y V V ,X y ~h~h )( y y y X "/ h~ lot: - X )( X X X q:h;k )( X X X )( ~h~k(; V )(' X /0 ~ ~G Y )( X y X /o4.~~/. )( y y )( X // h ~kr: X- X -....,r V )C '. /j /.;< ':> /oc; X X- X ~., X- X /~~~L/ " K X K X X . . . - ' /7 !/ /) ~ !~ /(j; /G. ~ * Please fill in Board/Commission at top, enter members names across and meeting da~f~wn. 2ooo~ (04-0\. C2~ 4c. ;t1e.~ x X X )( y X X x X X' Ae x >< X 1'1 . 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I c- lDDt,) ~ lo'liD\ ~QJ--b x Y- X- X x. , , l- X X X X )( X X X X /5 'Y.t30 it 450 -" / (j) .dO(1) 0- .6 iJA - . 10 '6sg1 ATTENDANCE FORM - CHECK MKMBERS PRESENT * (See note below) /7:A . DATE ~~l~-l: I}. Oq <--'_I t/ I e4Gd :>'//~ G,....fc... Ar~" y)l./ // "L- ~/:1::~. (7... /,1>->""'?7 Sfark/77o_ / /9" ~C;; .J .J V V 'x. X" Y' .7J.h71oc. X ')( X X 3d "/ ~c;, V X X X- X fh'kc> y 'l V X. y (/ j~/o& ''1 X- X X t,I ~l./k k' Y. ,)( .)( 5h~&: )( , y y X X ~/ /../ .... '. y V V .X X ~ / :J.A-. ft/. ~ t,h?~/. y X- X' y )( '? h~ ~t: . X y X X X ~h<?"~/. )( X X X 'X ~ h <;' ~t.: V )( X /oh~.:::; y )( X X- x: /o~71,k"'- X )( y )( )( //lL~~G X- X ..", v )C ///~...,/~ X X- X X- X /d/;'""~ L/ .. K X- I< X .x , ; - . . - ' /7 /'/ /7 .; (~ /r:; /~. ..../~ ;t1 - I x x X )( X- X X )( X . x y X Ie; . * Please fiU in Board/Commission at top, enter members names across and meeting dates down. ~DDO . \.040 \ 'Q~-b 'if /'-' Y- X- X x x X- x x .: x- x x x . /5 i (I) dOr<J G: ~_OA - . * (See note below) ATTEND~C~~kl- CHECK MEl?l~:lsENT 02~ k. l'1ekn ':;;4-. DATE i -r:z,- C?t::/' , rYet 0L- ( -T Yvonne Clad ~,///~ Gr$ c... Arl"LJ Jj Lt- ;:/a.j~~ : ;7", /;1",,,, rl;-, s-Iflrk frzC?#7 //9"~& J .J <J Y' '){ X' X dJ.h7/oc. X )( X X 3~?~c; Y' )( X X' X f /v ~G Y V V X y (/~15//:'~ )( Y X .x (/ 6 i/ ~t':. V Y. .y ,)( 5h~~ )( , y X )( X ~h~ Ioe. y V Y .x y 0h?~~ ')( )( X y X " h~ ~r: . X y X X x' ~h;j~ ')( X X X X tty h < ~r.. V X' X IO~~c; V )( )( y y /o~2,~/. )( )( y ;xt y // h J,k,~ X- X yr V K ., // /.,.< ~ /0-<:; it X- X X- X /,.:.1 ~G- ~~ ., K X K X- X . ; - . , - . /7 // /7 (:s /~ /(;" -. x x X )( )( )( X )( x X' X- X Y X /'1 k:;O ~4~O * Please fill hn Board/Commission at top, enter members names across and meeting dates down. 1060. \"4D\ ~i'~ o'}0~ \0 CAMPBELL KNUTSON Professional Association Attorneys at Law Federal Tax 1.0. #41-1562130 317 Eagandale Office Center 1380 Corporate Center Curve Eagan, Minnesota 55121 (651) 452-5000 City of Farmington Attention: Ms. Robin Roland Finance Director 325 Oak Street Farmington MN 55024 (~'\ SUMMARY STATEMENT '. Page: 1 December 31, 2006 Account # 1852G \006.(,403 10 lO.10403 I 050. blfO.3 11"1'" f) . toll 03 .t~ 30.<c403 /ptL6. ~4-03 (0 I (.toY 03 PREVIOUS BALANCE FEES EXPENSES CREDITS PAYMENTS 1852-000 RE: GENERAL LEGAL SERVICES (RETAINER) SERVICES RENDERED TO DATE: 5,326.56 5,823.00 83.26 0.00 1852-002 RE: PASS THROUGH LEGAL SERVICES SERVICES RENDERED TO DATE: 2,704.50 1,080.00 0.00 0.00 ~ r8~003 RE: FORFEITURES (NON-RETAINER) SERVICES RENDERED TO DATE: 62.50 200.00 1.78 0.00 18~fjb;'~R~~.ED*~fl!'E~ltfi'J(~l"""'12RS"\l'\!eN:.RE::fAtNER} SERVICES RENDERED TO DATE: 189.00 306.00 0.00 0.00 1852-018 RE: WAUSAU POND EXPANSION SERVICES RENDERED TO DATE: 27.00 0.00 0.00 0.00 22-6'-\ .eo tiBcg.il, 31 ~ . 00 ~(,p ( 150 ~ 580 , t::r'-" to 7 . tf!J) l/S,S) BALANCE I. -5,326.56 $5,906.26 Lf't 04 . (",4 o?> 2.2-6 · 00 if Ll t . ~ 40..3. ? 3"1.ffi ~OO. ~4ob 3"0.00 -2,704.50 $1,080.00 4tJ:,o.lo40!. t6,.&:> 2100. rAo3 -62.50 $201.78 -189.00 -27.00 1852-023 RE: EDAlPATRICKANDERSON PRIVATE DEVELOPMENT CONTRACT SERVICES RENDERED TO DATE: 18.00 0.00 0.00 0.00 -18.00 ~6()O, (P'lQ3;' $aQ6,00~ $0.00/ $0.00/ . CAMPBELL KNUTSON Professional Association Attorneys at Law Federal Tax I.D. #41-1562130 317 Eagandale Office Center 1380 Corporate Center Curve Eagan, Minnesota 55121 (651) 452-5000 City of Farmington Attention: Ms. Robin Roland Finance Director 325 Oak Street Farmington MN 55024 Page: 1 December 31,2006 Account # 1852-013G 75 RE: EDA GENERAL MATTERS (NON-RETAINER) SERVICES RENDERED TO DATE: HOURS 12/06/2006 SRN City Center II - review email re: reversion of forieited . lands; research file; office conference; telephone calls to Dakota County Abstract requesting copy of state deed; review fax; telephone call to and email from Linda at Dakota County Abstract. 0.40 36.00 12/07/2006 AMP Telephone call from Tina re: request for coolers; review lease; telephone call to Tina; email to Tina; telephone call from Kevin; emails to staff re: development contracts; email from Tina re: sale; email to tina re: statutory requirements. 1.60 216.00 12/12/2006 AMP Email from Tina re: Otten contract; review information from Kevin. 0.20 27.00 12/15/2006 AMP Telephone call from Tina re: contracts. 0.20 27.00 - AMOUNT DUE 2.40 306.00 TOTAL CURRENT WORK 306.00 PREVIOUS BALANCE $189.00 . 01/04/2007 Payment - thank you -189.00 TOTAL AMOUNT DUE $306.00 . I€MA tead'er5Bf ffre' CfJre IJf getter Ca-mmfJl1ities Springsted To: Peter Herlofsky, City Administrator From: Craig R. Rapp RE: Interview Summary - Farmington Economic Development Strategy Date: January 16, 2007 The following is a summary of the interviews conducted by our project team regarding economic development in the city of Farmington. . The information presented has been aggregated in order to maintain the anonymity of the persons interviewed. However, specific comments, and the issues raised are sufficiently detailed to enable the City Council, EDA and staff to understand the concerns raised and the suggestions offered. The following process was used to gather information: ~ A standard questionnaire was developed ~ One-on-one interviews were conducted with the following: o Mayor and City Council o Economic Development Authority members o Selected City staff o Selected business and property owners ~ The interview team (Craig Rapp and Peer Team) discussed and summarized the findings Although the questions developed were used by all interviewers, each interview was tailored to elicit the maximum value from each participant. Specifically, our goal was to allow each participant to give us their unique perspective. . In some cases this meant deviating from the standard questions and simply pursuing issues raised in the interview, in others it was a combination of set questions and additional discussion. In all cases, we were successful in engaging the interview subjects in a wide ranging discussion about economic development in Farmington. The answers listed are those answers that were given by a majority of the respondents. In . that way, we are representing the strongest opinions of the entire group, not just the opinions of an individual or small number ofthose interviewed. At the end of the summary, we have included a few opinions that were not widely held, but we believed represented important perspectives that should be shared with the City. Responses 1. Interest in Economic Development Everyone interviewed expressed a strong, professional or personal interest in economic development and most wanted to help the City move forward and thrive. For the most part, participants indicated that this economic development strategy formulation approach is a good one~ as long as Council gets behind it and stays behind it. 2. How would you describe Farmington's business climate? The themes that emerged confirmed that the City is primarily a service oriented economy with its future potential related to the pace of residential growth. The business climate is viewed more regionally than as a micro, or local economy. n.,.... . . Many thought that the commercial/office sector is the strongest with b~ing, legal, and insurance businesses. . They noted that Farmington is a "little off the beaten track" for commercial development, because 1-35 is so far away. . The industrial sector is viewed as being in a holding pattern with little available land to grow. The respondents believed that the City must be ready to act when land in the western part of the city opens and the agriculture designation drops in 2012. . Given land prices in surrounding communities, it was observed that Farmington may have a competitive advantage . The retail sector has little to offer the residents with so much competition close by. There are three Super-Targets in close proximity that are keeping investors out of Farmington for now. . The Burnsville model that was examined was mentioned by several people - noting that f-allow-through should be happening. . L'L .III . Ji,~1I . iiHlllllllillllllt.m;.I!lU' H.J!lt,,~l~ " - __ . . Many felt that there is pent up demand and potential, but that for whatever reason, entrepreneurs aren't taking advantage of it. 3. City efforts in attracting, retaining, and expanding business Nearly all participants indicated that the City is unorganized, limited, and haphazard in its economic development efforts. It was generally felt that the City is not proactive. . What does it do well? o Now moving in the right direction o Incentives on land o Changing approach to development fees How could it improve? o Get well qualified economic development professional on staff o Need to get consensus and consistent support for economic development efforts o Stick with whatever goals you choose... the Council changes their minds too frequently o Need stable City Hall o More communication with developers is needed, for example, some cities have quarterly updates for developers on projects and progress, plus take input o Public relations (ambassador type) o Be much more aggressive 4. Greatest challenges facing the City as it attempts to create a successful economic development strategy: This question seemed to have the widest range of responses. The themes most frequently mentioned were: . . . . . 0 1& . 0 e . Getting everyone on the same page · Especially businesses working together · Need to speak with one voice (EDA, Chamber, Planning Commission, City Council, County) Creating a plan Overcoming poor decisions of the past Not actually ready for development challenges Getting a qualified economic development professional Overcoming resistance to change/growth Having the outside world view Farmington as ready for development Growing, yet keeping a small town Not being risk averse Confused electorate . Getting townships to cooperate . Very costly to do comprehensive economic development . Coordination with Comprehensive Plan 5. Farmington's Best Assets: . Nearly everyone indicated that the downtown was the city's best asset. The interviewees liked the: . Historic nature of the downtown . Small town feel . Quaintness of the space . Stronger service sector . Some active restaurants Conversely, they also thought some things about downtown could be improved: . Businesses need to work together more with some common goals. . Need more events to attract and keep people in the area . Restaurants need to get more with the times. Other city assets frequently mentioned were: . . Vermillion River . We have time to plan this thoughtfully . Great residents (educated, thoughtful, interested in the City) . Good governance . High Growth potential . Nice place to live: trials, parks, neighborhoods . Still has open-space 6. Why invest in Farmington? This was a difficult question for many people; however, there were a number of common responses: . Great place to live (Small-town atmosphere) . High growth potential · When housing market rebounds, it will explode with numerous lots - leading to increased demand for goods and services . Good investment (medium term) l!J Red Carpet for new investors (Council is open to new business) * Staff tries to be helpful and easy to work with. I:) Good environment for small to medium sized businesses . o Good schools .....-- ,.,.... . Other Comments/Suggestions: 1. The school will be adding facilities (hockey) that will be attracting tournaments to the City. The City could use a good hotel and restaurant to capture the dollars from these kinds of events. Also, when people visit the industry in town, there is nowhere for them to stay. 2. Be mindful of development along Hwy 50. It could lead to more problems for the downtown. 3. Highway 3 needs widening - inattention will slowly stifle progress. 4. Figure out how to work with the townships 5. Residential market is good.. .land prices between buyers and sellers show some differential - people asking "way too much" for undeveloped land. Again, what is the "mix" of housing that the city is looking for? 6. Has there ever been a survey of the businesses located there to see why they chose Farmington and is there a business retention program? 7. Let the private sector do what it does best - keep the city focused on public sector duties . . . I€MA leaders at tire Core of Better COO1munities Springsted Economic Development and Downtown Revitalization: A Review of Trends and Best Practice City of Farmington January 2007 Introduction The City of Farmington is undertaking a concerted and focused effort to create a plan to guide economic development. To assist the City in this effort, a review of research, current trends and best practice has been conducted. The following is summary of our findings. Is development of an economic development strategy worth the effort? . This question was the starting point for our research. Because the City of Farmington will be investing time and resources on economic development it will be important to understand how important a city plan will be to a successful outcome. Many ofthe factors that influence city economic development success relate to national economic trends. As a result, there is little that the individual city can do to affect those variables. There are, however, many policies that a city can control which can have a direct bearing on its competitiveness (Kresl, 1995). Research also indicates that although there are critical influences on competitiveness beyond the control of city policy-makers they need not be passive actors. 'Good' policy can equip cities to adapt and to foster a dynamic economic environment Fisher (1998). Development of good policy was a common theme amongst those who have achieved economic development success. Of all of the lessons learned, the primary recommendation from successful communities was: Focus your attention on issues within your control and create strategies to maximize your impact. While this may seem self-evident, it is often difficult to adequately articulate the range of issues that a local jurisdiction can, or should address when contemplating a local economic development effort. The following is a list of policies and positions that . successful cities identified that contribute to economic development success: . A Shared Community Vision, including: . o Public outreach campaign, targeted at informing citizens about their future options and alerting them to the opportunity to help mold the future o Focused communications (newspapers, etc...) o Fostering a core group of people to help begin the implementation process through collaboration and cooperation. . Cooperation among the chamber, government, etc. (no turf wars) . Having a plan and sticking to it (patience) . Articulation of a well-thought-out and clearly expressed strategic plan . Focused Leadership- all members of the process aligned and committed . Effective governance - consistent, clear processing and decision-making . A supportive regulatory environment - creating policies and approaches that support private investment . Understanding the regulatory environment -particularly how it affects the ease with which business can operate, while also contributing to the physical and . social environment. . Attitudes toward land-use planning - understanding how this will bear on the types of economic activity that are able to flourish. . Public support of cultural activities - and for developing the civic amenities as key 'assets' ofthe city - such as city f(':stivals. . The taxes and charges levied by the authorities - these along with some of the cost-alleviating services cities provide contribute to the relative attractiveness of locations. . Investment in reliable, accessible infrastructure and services . Inclusiveness of all social groups . Promotion of smaller firms . Ensuring an adequate complement of business and financial service providers . Social and environmental factors, such as o The quality of residential accommodation o The crime rate o Schools . . Beyond these local policies and approaches, there was one additional notion that was cited that was important, but pushed local government leaders from their comfort zones: "Get Comfortable with Concept of Failure". While this seems almost impossible in a government setting-economic development, more than any other municipal endeavor contains the element of risk. The concepts of venture capital, creative risk taking and entrepreneurial leadership are the stock in trade of new business development, and government is challenged to understand, if not embrace these notions. The following excerpt illustrates the point: Howard Bell, executive director for TechTown, the Wayne State University-affiliated high-tech incubator that opened two years ago in Michigan, told a session at the Detroit Regional Chamber's Mackinac Policy Conference that political leaders "need to get comfortable with the concept of failure." Speaking as part of a panel on defining Michigan's leadership agenda, Bell said that leaders can't get bogged down worrying about failure or trying to play it safe. They need, he said, to emulate the entrepreneurs he deals with - people who know that failure is an inevitable part of being creative and trying to improve the world. "As we move forward with new technologies, we don't really know where we're going. A lot of the entrepreneurs in the new technologies are going to fail as part of the process," he said. . "You need to be a marathon-oriented group of leaders. You can't worry about being chastised for failure. " Fellow panelist Edsel Ford II, civic leader and president ofWaterford Township-based Pentastar Aviation, said first and foremost leaders need integrity. "If you don't have integrity, you don't have any leadership skills." From: Henderson, Tom. "Panelists: Leaders shouldn't try to play it safe." Crain's Detroit Business 22.23 (June 5, 2006): 25. A Measured Approach to Chasing Development As Farmington considers strategies for economic development, it is important to understand the reality of chasing huge boxes of retail or production space. Economic development programs continually focused on attracting industry as the most effective strategy for job creation have often failed. For many communities, and in particular rural areas, this strategy often "lines the pockets" of the real estate development community while creating less than living wage jobs in big box stores that undermine local retail and service enterprises. . In contrast, those communities able to retain retail and service sector local businesses may see profits invested locally and contributed to local causes. The result, according to Rupasingha and Goetz (2003) is that "self-employment is associated with lower poverty rates, while the presence of Big-box retailers is associated with higher poverty rates." . Community leaders often assume that incentives offered for relocations will be returned many times over in new tax revenue and support for schools and local infrastructure. The reality, however, is much different. Relocations often create new costs in the future when infrastructure ages, the workforce needs change, or the incentives run out and the operation moves again (Humphrey, 1988; Flora & Flora 2004). An aggressive strategy to "chase" development also requires significant staffing and operating funds to support the necessary travel and public relations costs. Small communities such as Farmington generally do not have the resources to do this. The reality however, is that industrial recruitment, while generating jobs in some communities, accounts for only a small portion of overall new job creation. Indeed, research indicates that this strategy has limited effectiveness for most cities (Kauffman, 2002). "Grow Your Own" as a Strategy The most effective approach may be to adopt an "enterprise development" strategy, which simply means supporting the development of small to medium sized business in the community through a variety of proactive measures. According to Thomas S. Lyons (2002), "Enterprise development is increasingly recognized as a relatively low-cost, 'bottom up' strategy for economic development that is particularly well-suited for a . variety of rural and urban communities" (p.1). The following is put forth as a rationale for focusing on a "growing your own" strategy for economic development: 1. The majority of businesses are small or medium sized, and they employ the majority of people in the United States. 2. Entrepreneurial growth companies account for "at least two-thirds of net new jobs in the American economy" (Kauffman, 2002, p. 3). 3. Small businesses incubate innovation leading to new businesses opportunity. They are responsible for more than 50 percent of all innovations, 67 percent of inventions, and 95 percent of all radical innovations (Kauffman, 2002, p. 5). 4. Weare living in a "new 'Entrepreneurial Age' in which entrepreneurs and their companies are transforming the economic landscape." (Kauffman, 2002, p. 4). 5. Entrepreneurs, those focused on innovation and fast growth, comprise 5 to 15 percent of all U.S. businesses (Kauffman, 2002), and there are some in every location. 6. Entrepreneurs and the companies they lead playa critical role in fostering economic prosperity and are vital to our ability to compete internationally. 7. Fast growth companies occupy a variety of business sectors, but they often start at the . . kitchen table or in the garage with less than $50,000 (Kauffman, 2002, p. 7). 8. Both our defense capability and homeland security require a robust small business sector. 9. Once established, a strong entrepreneurial environment in distressed or remote communities can lead to success in regional relocations of related businesses. If the first element in a proactive approach to entrepreneurship is well-organized and effective business support services, then the second essential element is community leadership. Case studies collected at the Heartland Center indicate that service providers alone cannot make a successful "grow your own" approach. In the Heartland Center study (2003), leaders play key roles in businesses success by: o Creating a compelling vision; o Communicating the vision to others; o Developing a plan to support business success; o Demonstrating commitment (Wall & Luther, 2003,p. 5). . Communities that are successful in growing their own indicate that "nearly all of the citizens become cheerleaders to promote the successes of new enterprises. They understand the importance of operation between businesses and all other parts of a total community. Where communities focus on creating their own jobs, leaders build a culture to nurture entrepreneurship in all three arenas: civic, social, and business. They also develop a support infrastructure, or system as Lyons described, that addresses the need for services, space, networking, and capital" (Wall & Luther, 2003, page 5). Research on entrepreneur/community relationships reveals the following: . 1. Access: Entrepreneurs need help accessing talent, capital, networks, and infrastructure (Kauffman, 2002, p. 12) as well as an eco-system "mix of good programs, good quality of life, and a culture that encourages people to take risks and start new ventures" (Kauffman, 2002, p. 20.) 2. Community: In today's world, it often takes a community to grow an entrepreneur (Heartland Center for Leadership Development, 2003). 3. Local Resources: A focus on "growing your own" can be sustainable as it draws on local resources, focuses on mobilizing human rather than financial or built capital, and fosters businesses with personal ties to the community and subsequent commitment to that community (Lyons, 2002). 4. Vision & Culture: Developing entrepreneurial economies in urban and rural regions requires a vision for entrepreneurship among the leadership and a culture that supports and nurtures entrepreneurs, coupled with specific elements including a proactive educational system; access to spaces, services, and information; resources for financing; access to networks and mentoring; and a supportive environment that provides public recognition of business achievement and values and supports people starting out in business (Heartland Center, 2003). 5. Positive Environment: An Aspen Institute report focused on the need to create a . positive environment, provides an educational system that stimulates and prepares entrepreneurs, and maintain a culture that values and celebrates entrepreneurship (Aspen Institute, 1996). A Concentration on the Central Business District or "Downtown" Farmington has evolved from its early days as a free-standing small city to its current position as a growing outer tier suburb. To identify Farmington as a typical suburb however, would be to misstate its unique characteristics, in particular, the downtown area. Given this unique circumstance, and the role downtown will have in Farmington's future, special attention has been given to the challenges of developing and redeveloping a "downtown" district. The specific literature on the revitalization of downtown areas in small secondary cities within metropolitan areas like Farmington is sparse. The research does reveal however, (Robertson, 2001) some of the differences between large and small cities that impact the development strategies and possibilities of each. The downtowns of small cities like Farmington are more "human scale," meaning that the buildings are smaller and distances between destinations are shorter and thereby walkable. Traffic congestion and crime are usually minor problems in small cities. Local independent businesses dominate the retail sector. Residential neighborhoods are close . enough to walk downtown. Historic structures are likely to remain in the downtown, unlike in many larger cities where urban renewal, the interstate highway system, and other development pressures resulted in the removal of entire blocks of historic structures and even entire neighborhoods in many cities. Results from a national survey (Robertson, 1999) on downtown revitalization strategies for 54 non-suburban cities (population 25,000 to 50,000) identify the major problems confronting the downtown areas of such cities: . attracting new development . attracting people on evenings and weekends . competition from discount stores and malls . vacant space Case studies were also available (Burayidi, 2001) on downtown development in non- suburban (free-standing), small cities with populations under 100,000. The results of these case studies provide guidance for implementing programs and policies (which are applicable to Farmington): (1) Emphasize local funding for downtown programs so that the community feels ownership of the process; (2) promote both physical and economic renewal by creating a sense of place in the downtown; monitor downtown revitalization programs and progress so that the . . effectiveness of these programs can be evaluated; (3) involve many constituencies--business owners, tenants and landlords, government officials, workers and residents in revitalization efforts; (4) establish a long-term vision for downtown; and, (5) find out about programs in other communities. Like the recommendations on general economic development cited earlier, the best practices in downtown development and redevelopment relate to what the local government can control and how it should participate in the process. The following are the suggestions most often cited. Many of them overlap or relate to those previously mentioned as best practice for general economic development: Role of Local Government . . Recruiting businesses and developers into the downtown area . Shaping the zoning ordinance to require landscaping and appropriate signage in the downtown area. . Revolving loan funds at below market interest rates to help finance rehabilitation projects. . Take the lead in developing vacant property on the riverfront into a cluster of restaurants. . Acquire Property (assemble pieces) . Taming White Elephants (large vacant or underutilized buildings) . Historic Preservation o Incentives . Historic structures located in National Historic Districts are eligible for federal rehabilitation tax credits. . Low-interest loan program for developers to refurbish downtown buildings. . Downtown Plans and Historic Review: Having a plan and a review board sends a signal that a city is serious about historic preservation Getting People to Come Downtown . Waterfront development is often used to spur economic development in downtown areas that have this natural advantage. The city of Farmington appears to have this untapped potential. Riverfronts offer ideal places for: o Restaurants o A public o Parks with a play area for children . Festivals throughout the year . Farmer's markets during the summer and early fall. . Housing . . The development of housing is essential to a healthy downtown - residents provide demand for retail, services and entertainment Review of Key Findings for Downtown Development . Having an organization whose sole function is to advocate the interests of downtown is critical. . Invigorating downtown areas by building on its strengths (density and infrastructure) and enhancing amenities through clustering of restaurants and entertainment options is important. . The purchase and rehabilitation of large vacant buildings or the identification of potential projects for those buildings by each city's Main Street Association will help spur development of smaller buildings nearby. . The revitalization process is different for each city. The goal of these strategies should be to develop a distinctive downtown in which people enjoy spending time and money. Projects should be tailored to the needs ofthe community. o For additional descriptive information on Downtown redevelopment, see Appendix A This survey of approaches is meant to be part of the foundation upon which the City of Farmington can build its own economic development strategy. As the research indicates, . each community is different, and it is important to understand the strengths and weaknesses of the community in order to create a plan that will be viable for the long- term. The ideas presented in this document are intended as a collection of good ideas and starting points for Farmington's journey. . . Appendix A: Narrative on Downtown Development The literature on urban economic development is dominated by analysis of the decentralization of population and employment, the resulting decline of the traditional central business district (CBD) referred to hereafter as downtown--and the consequences of both. There is a direct relationship between sprawl (excessive decentralization) and downtown vitality that should be reflected in Farmington's plan. Brueckner (2000) points out that excessive suburbanization reduces "the incentive to redevelop land near the center" contributing to the decline of downtown areas. Numerous policies and projects have been implemented to lure people and businesses back downtown. The movement to revitalize once vibrant urban centers that have gone through a protracted period of decline has gained momentum over the last few decades. KEY POINT: The organization of downtown interests is critical to revitalization efforts. . Downtown areas often lack large tracts of developable land and have a variety of aging historical buildings that are not compatible with the type of development, such as big box retailers, that is occurring in outlying areas. Historic buildings and existing infrastructure within downtown areas offer an opportunity to create a new and unusual combination of activities in stark contrast to what Kunstler (1993) termed the "nowhere syndrome," referring to the anonymity of many newer built environments with the same stores, architecture, and large parking lots. The ability to establish a "sense of place" is one of the strengths of traditional downtown areas. Review of the Literature on Downtown Revitalization The literature on downtown revitalization in the United States is primarily descriptive and prescriptive--describing policies and projects that have worked or not worked in particular cities and prescriptions for how to approach the revitalization process. One result of this approach is that specific policies (or projects) that have been successful in one city are often adopted with little modification in other cities. Many times such projects are not successful and fail to establish a "sense of place" that makes downtown areas attractive. Policies and Projects Several types of policies and resulting projects have been implemented to revitalize downtown areas. Robertson (1995) provides an overview and assessment of seven approaches that have been commonly pursued: . (1) pedestrianization, (2) indoor shopping centers, (3) historic preservation, (4) waterfront development, (5) office development, (6) special activity generators, and (7) Transportation enhancements. . 1. Housing development is an additional strategy. Pedestrianization:. Pedestrian malls did not meet the original goal of bringing people downtown and reversing the decline of downtown retail. Indoor Shopping Centers: The development of indoor shopping centers was another effort to retain retail sales and compete with the suburbs. Gratz and Minz (1998) makes the point that rather than large projects such as downtown malls, the focus should be on incremental changes that "add to the long-evolving, existing strengths, instead of replacing them" (p. 61). West and Orr (2003) argue that such developments have positive spillover effects: increasing community pride and encouraging shoppers to visit other stores and restaurants in the downtown area. Recent trends however toward "lifestyle centers" and "demalling" have contributed to the reality that indoor shopping centers have a limited appeal and effectiveness, leading to a renewed interest in historic downtowns. Historic Preservation: This focus is on "adaptive reuse" of historic structures where buildings that were initially constructed for one purpose are converted to a different use. Over 48,800 buildings have been rehabilitated in cities with Main Street Programs since 1980 in addition to substantial numbers of new businesses and jobs (p. 455). While some . of these buildings may have been rehabilitated even in the absence of the program, Main Street has undoubtedly had a positive impact in communities in terms of being a catalyst for historic preservation and rehabilitation of downtown properties. Waterfront Development: Farmington does have a unique water feature that could be an untapped economic development opportunity. Research does not provide the relatively small scale that is represented in Farmington, rather the studies are focused on larger urban areas. Office Sector: The office sector in the Farmington economy is significant, especially downtown. Research shows that this feature has remained a large component of downtown employment and can serve as "feeders" to stores, restaurants, and hotels in the downtown. Special Activity Generators: Special activity generators such as the planned hockey arena with proposed tournaments have become common components of economic development strategies. The bulk of research and data are on a much larger scale, however the principle of capturing visiting dollars is a typical economic development strategy. Transportation Enhancements: Transportation appears to be low on the list of concerns for those visiting downtown Farmington. However, planners should keep in mind . enhancements that deal with issues surrounding travel time, congestion, safety, and . parking. Downtown businesses often complain that potential customers are unwilling to walk more than a few blocks to a store and that adequate parking is crucial to bringing people downtown. The possibility of not finding parking close to the targeted destination is a deterrent to visiting downtown areas. While parking can be a problem in cities of any size, congestion and safety concerns are more prevalent in large cities than in small cities such as Farmington. Housing and Downtown Revitalization: The connection between housing and downtown revitalization has become a common component of downtown revitalization in recent years. Downtown advocates realize that a residential population adds to the quantity and variety of goods and services demanded in a downtown. While activity 24 hours a day, 7 days a week may not be a necessary condition for a vibrant and healthy downtown, a residential base increases the level of activity after normal business hours as provided by Birch (2002). White Elephants . Often the rehabilitation of white elephants--large vacant or underutilized buildings--is the impetus for downtown revitalization efforts (Moe & Wilke, 1999; Weiler, 2000). Movie theaters, department stores, and warehouses are some common types of white elephants. While vacant properties, in general, signal a lack of economic activity, large vacant buildings are particularly troublesome due to the externalities associated with them. Because white elephants are large and visible, they may have a substantial negative impact of surrounding property values and lead to a cycle of deterioration, a negative externality. Often these types of buildings have historic or architectural elements that provide the unique sense of place that distinguish traditional downtown areas from newer developments, an unrealized positive externality. The rehabilitation of white elephants is one of the core issues in downtown revitalization. These buildings are located in areas with existing infrastructure--roads, sewers, and so on--unlike new developments on the fringe or urban areas, yet these buildings are underutilized. These buildings may be underutilized or vacant for a variety of reasons linked to the landlord's return on investment (or lack thereof). The interior systems, such as electricity and air conditioning, may need to be updated. The costs of these updates or the cost of converting the building to another use (converting a movie theater, for example) may be greater than the accumulated rent or the sales price the landlord would receive. The landlord may continue to hold the vacant property because he or she believes that the value of the property will increase over time. . There may be no market for the property: no one is willing to buy it. If property taxes are higher than the value of the property, the landlord may simply abandon the property. Finally, white elephants and smaller rundown properties may result from absentee landlords--building owners that live in another city and do not take care of their property. . Revitalization: A Slow Process: One of the challenges of downtown revitalization is identifying viable uses and financing for vacant or underutilized space. It is usually obvious which buildings and spaces need to be rehabilitated-what is less obvious are the potential uses. Revitalization is a slow process most often occurring in increments--one building at a time. It took decades for downtown areas to become "rundown," and even with advocacy it will take time for them to evolve into something different. In downtown areas that have begun the revitalization process, public-private-nonprofit partnerships, intervention of local government, proactive policies at the state and local levels, and continued leadership are needed. The restoration of a few prominent buildings often serves as a catalyst for the restoration of others. Revolving loan funds, tax abatement, and streamlining permit systems are ways that government has encouraged private investment. Cavanaugh (2002) provides case studies of several downtown revitalization projects focusing on the partnerships between public and private entities. Downtown Revitalization: A Brief Look at One Formula: Organizing Downtown Interests - The Main Street Development Approach . A key factor in many successful downtown revitalization strategies has been the Main Street Approach. 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Trends 2007 brings renewed focus on unique assets and opportunities for downtowns (. Capitalizing on the feel and authenticity of downtowns as well as the unique experiences they can ofter wiIl be what makes and keeps them successful in 2007 and beyond. That's the big-picture consensus of downtown marketing leaders and experts that Downtown Promotion Reporter interviewed throughout 2006, and spoke with again as the year drew to a close. As we ring in the new year, let's freshly evaluate the marketing opportunities, challenges, and threats facing downtowns in 2007. First, recognize that some challenges or weaknesses are not in the power of downtowns to change. Downtowns "can't compete with large discounting, they can't afford huge marketing campaigns, and they don't sell all the products that are now found 'under one roof,'" says Candace Bales, executive director, Bay City Downtown Management Board & Development Authority. "Some of the fundamental reasons why downtowns started to deteriorate (continued on page 2) Economic Impact Marketing adiusts to a changing market . Paradoxically, even success, of all things, can become a threat to down- town. Success can drive real estate prices sky high, and squeeze the cost of housing in particular beyond what many service workers can comfortably and sustainably afford. So success can come with side-effects that compli- cate a downtown's path for sustaining and building on its fortunes. A down- town confronting this problem is that of Telluride, CO (pop. 2,220). In late 2005, the Telluride Town Council established the Telluride Busi- ness Task Force to study the downtown's business dilemmas. Downtown's retail and restaurant sector "is not failing by any means. But obviously there are some challenges that make it more difficult," says Sam Siegel, facilitator, Telluride Business Task Force. "When you're in a resort town and you're a long way from any urban area, you've got a local population that's in the town, a couple thousand, and in the whole county, maybe 3,500 people," he says. (continued on page 8) <9 2007 Alexander COl1llTlunicatio/1s Group, Inc. All rights reserved. In this issue Focus on details, engage visitors, . and deliver the unexpected. 'v'v'l,ui JuwlliuwlIs CUll leulll from new faux town center developments. . . . . . . . Page 2 Downtowns must stand out amid increasing market clutter. Status quo attitudes and "Come shop downtown" marketing messages won't suffice against the new competition. . . Page 4 Looking Ahead to July. Film fes- tival is an ambitious event that's able to draw people from a wide region. Chalk and choco- late is a tasty summer combo, but mind the melting and keep the streets navigable. . . Page 6 Top 10 challenges that down- town businesses perceive. The top issues perceived to be thwarting the viability of down- town retail arid restaurants implicate marketing near the top of the list. . . . . . . . Page 8 Ad illuminates downtown's good design taste, partner leverage. Does the public need to know the design details from the manufacturer of these street lamps? No, but it makes for a snazzy ad that makes down- town look good! . . . . Page 10 Downtowns must capitalize on unique places and experiences (Continued from page 1) and disappear are in many ways even more prevalent today. But something interesting has been happening out in the world of malls and big-box stores that tells us what downtowns can do better than all the rest. "Just look at the 'top-less' malls being created with streetscapes and individual storefronts. How about the downtown look-alike facades that are being placed on big boxes. Why are they trying so hard to make their customers think they're in a downtown setting?" she asks. Downtowns' stock in trade is their feel Downtowns often focus on restoring their aesthetic appeal. "But when we take a hard look at why people are attracted to downtowns, it's apparent that there is some- thing more special than just how we look," Bales says. "It's feeling welcome when visiting the often locally owned and managed small shops and unique eateries. It's the wonderful cultural choices with art galleries, local intimate theaters, and learning institutions often in the mix. And there are new ways to get truly connected to the downtown community, with living units now being added in all size downtowns." These are the things that downtown must market - the competitive advantages over their imposters that they truly own. "What marketing money you have should be communicating how it feels to be in your downtown," Bales says. "Put emphasis on your strengths in your marketing messages with images of people in wonderful settings. Paint a picture of what's special about downtowns in everything you communicate to remind people that downtowns are a very special place to be." Refine setting for more positive, memorable consumer experiences Several people contacted for this article expressed similar views, talking about downtowns as places that people will increasingly choose to come to for experien- tial rather than utilitarian reasons. "Economists once described shopping as a very utilitarian activity. Shoppers were assumed to have a set of goals in mind. They rationally thought about necessary goods and services, collected information, and made purchases," says Kathleen Wolf, research social scientist, College of Forest Resources, University of Washington. "Retail has changed! People have purchasing goals but marketers now know that experiences are what countl" she says. "A good bargain is important, but shoppers are seeking positive, even memorable experiences. They enjoy retail environments that welcome friends and family, offer remarkable products or services, and are just friendly places to be. A focus on experiences may be the approach that a business district needs to remain . Focus on details, engage visitors, and deliver the unexpected As faux Main Streets and town centers emerge across the country, downtowns will continue to be challenged. Our historic city centers face a competi- tive disadvantage against these new developments, primarily in their ability to become an instant, mar- ketable destination. While true downtowns have the history and the "grit" that make them a unique place, they are in a constant state of evolution. Much of the funds gener- ated by improvement and maintenance districts are earmarked for cleaning, streetscape enhancements, and safety. Frequently marketing and events dollars are at the mercy of fund-raising, and events are pri- marily focused on large-scale once-per-year thrillers. As we watch the development of faux town cen- ters across the country there's a unique piece that they have a handle on. They are becoming place- makers, creating a distinctive ambiance and develop- ing small-scale events and participatory programming that make the experience of visiting about more than just the shopping. Downtowns are making great strides to become the places we all want them to be. But many times they are promising great things, and failing to deliver the experience people are craving. There are some things these new developments are getting right that downtown can learn from: . Focus on the details, the small things that cre- ate a distinctive ambiance and make the experience unforgettable. . Engage visitors through consistent program- ming and multiple events year-round that give them reason to come back again and again. . Deliver the unexpected, create a buzz, and offer an emotional and sensory experience at every level. - Jamie Licko, Progressive Urban Management Associates. . . 2 Downtown Promotion Reporter . www.DowntownDevelopment.com January 2007 . I ~ t ~ ~ ! l l i ~ I I I ~ I , I. I ~ . competitive with nearby deep discount retailers." With that in mind, we believe that downtowns that are developing fun social happenings like girls' night out events and outdoor movie nights, as well as seminars and training to help businesses iJ!lprove customer service, are all doing commendable work. Downtown Promotion Reporter covered examples of these program activities in articles leading our June, July, and November 2006 issues. Do events reflect the quirks and character of downtown? One of the marketing-related challenges for any downtown is to not just be good, but be different and show everyone how downtown is unique from other commercial areas as well as other downtowns. Events are an area where downtowns often don't differentiate themselves as well as they should. Artist Michael William Kirby of Murals of Balti- more, who we talked with for a February article about chalk festivals, challenges downtowns to host "events that are unique to the area and that are not found any- where else in the world. Art festivals, fairs, concerts, and the like constantly draw crowds together and are beneficial to local merchants," he says. "Cities and towns need to grab on to local culture and glorify it. Visitors come to new places to see something differ- ent. They do not come to see the same thing that they can find in their own home or city." For example, there are only so many downtowns where one can visit a Chinese New Year celebration in North America. But tiny Evanston, WY (pop. 11,510), as we saw in "Looking Ahead. " to Febru- ary," is one of them. And north of Mexico, a down- town "Dia de los Muertos" festival is rarer still, but it suits the markets of places like downtown Silver City, NM (pop. 10,550), and downtown Oceanside, CA (pop. 161,000), as we covered in "Looking Ahead ... to November." And your French Film Festival probably won't ever be a dime a dozen in the U.S. But it draws rough- ly 18,000 from a large region each year to downtown Richmond, VA (pop. 197,800). "The goal in my mind going forward is to continue to create events on a con- sistent basis that meet the cultural and social needs of the residents," says Jason Solomon, president, Cary- town Merchants Association, Richmond. "Most city center residents choose to live where they do because of the arts and entertainment that these areas provide," he says. "In a downtown, the January 2007 types of events happening are not cookie-cutter. There aren't many multiplex cinemas in downtowns. The events being promoted are more cultural [and origi- nal] in nature, be it arts, theater, or live music." How is downtown's target marketing aim? As downtowns grow in demographic diversity, they must be sure that their marketing messages are reaching all the people who come to work, play, or live in and around downtown. Does downtown know its ethnic media outlets, for example? "As communities become more and more diverse, we have to use our marketing talents, reach them through their media, and create an atmosphere of inclusion," says Sylvia Allen, president, Allen Con- sulting. "It all comes down to looking at what your com- munity has that will attract the various demographic groups and then reaching those demographic groups through their medium of choice," she says. "As with any marketing, you define your assets, determine who will benefit from those assets, and then reach those target markets through the media that appeals to them." "With innovative, smart marketing, downtown business can develop niche markets, and retain or get new customers," says Rowland Freeman, chairman of the Williamsburg, VA chapter of SCORE (the Service Corps of Retired Executives). "Without innovative [marketing] techniques, downtown stores will cease to exist," Freeman says. "This means the involvement of the town/city chamber of commerce, Rotary, Kiwanis, and most appropriately the SCORE chapter. A joint program with marketing education and train- ing will work wonders." Make the Web work for downtown! It can be an invaluable thing for downtown itself to have a strong website - one that truly represents downtown, not simply the downtown management and marketing organization. "Hands down, I believe that the key marketing opportunity for downtowns is a good Web presence," says Mari Eosco, former downtown coordinator, Main Street Bath, Bath, ME (pop. 9,270). "Have a good website that highlights the down- town's assets: museums, businesses; community efforts; organizational history; and don't forget the photo gallery. The most visited page for many websites by far is the photo gallery. People love to see other people." Downtown Promotion Reporter . www.DowntownDevelopment.com 3 "Building a website doesn't mean 'they'll come.' Much, much effort needs to be dedicated to market- ing the site," she advises. "Find out what it takes to be on top of a search engine. Every single piece of printed material produced should have the website address on it. Sing it from the rooftops! Not to men- tion the weekly email that can be a spin-off." The Web is also an area where downtown can meaningfully support its merchants and restaurants with technical assistance. "Online shopping will con- tinue to remain an opportunity and a challenge for many small downtown businesses," says Barb Rosene, executive director, Coldwater Downtown Development Authority (DDA), Coldwater, MI (pop. 12,700). "In downtown Coldwater, many of our downtown businesses do not have websites that have the basics about their business," she says. "The cost of develop- ing websites and keeping them current appears to be daunting for some of the small businesses." In response to the need, the Coldwater DDA has been working with the Branch Area Careers Center's technology department to have students meet with various downtown businesses and then prepare very basic websites, identifying store hours, location, and product lines. "The downtown business then gets their website registered and the city hosts the site as the City of Cold water owns its own broadband network," Rosene says. "The next opportunity and/or challenge will be how these small businesses can utilize the Internet to sell their products safely and securely, while still keeping their business active and vital within our towns. It is absolutely imperative for our local his- toric downtown businesses to continue in our commu- nity and keep their hometown feel." Expand the scope of partnerships, overcome competitive rivalries for more shared success Partnerships was a theme on many downtowners' minds leading up to the New Year. Enhancing the downtown user's experience may demand downtowns expand their scope of cooperation with attractions outside downtown. It may require old foes like com- petitive shops or restaurants to mend fences. It may force downtowns to plan marketing more comprehen- sively and long-term. "Comprehensive planning is essential to create a positive retail experience," says University of Wash- ington research social scientist Wolf. "District fea- tures, special programs, and shops should be presented as a coherent, quality package. Competitive rivalries within a business district or even among nearby com- munities doesn't serve anyone well if the goal is to attract visitors and shoppers." Creating a consistently positive retail experience will always require teamwork and cooperation. "Shop- pers may be goal oriented, but they enjoy a collection of products and services that create a pleasant, memo- rable experience. Merchants must work together to create one or a series of destination districts that wel- come and satisfy," Wolf says. "Instead of competing with nearby communities, start working together," advises Sylvia Allen. For example, from 1997 to 2004, sponsored trolleys would provide complimentary rides to retail destina- tions around downtown Red Bank, NJ (pop. 11,840), on weekends between Thanksgiving and Christmas. . How to stand out in a crowd? A key marketing challenge for downtowns today is their ability to stand out in a crowded marketplace. It is no longer sufficient to have a cluster of businesses together occupying a group of historic buildings and think that consumers will find that distinction to be enough to spend their money there. Today, developers have created lifestyle centers that look better, feel better, and are structured better than many real downtowns. The mall is no longer the challenging competitor it once was; now, the most adept competitor to a downtown is a carbon-copy of itself. These centers are skilled at marketing, they are good at conveying their branded message, and these centers are filled with chain businesses that most down- towns will never be able to recruit. Amazingly, with these new challenges, there are still hundreds of down- towns, in small towns and large cities, whose market- ing message hasn't become any more motivating than just: "Come shop downtown." The top downtowns are recognizing that the focus and training must be on developing one-of-a-kind desti- nation businesses, beginning with the businesses that are already present in their downtowns. These business- es must be taught to differentiate themselves in com- pelling ways, and trained to convey their business differences in their marketing. Once a business does this, consumers willingly and illogically go out of their way to visit these businesses, past competitive choices. That's when consumers begin to relearn just how special it really is to come downtown. - Jon Schallert, The Schollert Group Inc. . . ~ 4 Downtown Promotion Reporter . www.DowntownDeve/opment.com January 2007 f ~ e For 50 cents, the trolleys would also take Christmas shoppers to and from a popular lifestyle center a mile away, The Grove at Shrewsbury (NJ, pop. 3,590). Some sectors of downtown retail get the value of partnering quite intuitively. Others might need some coaxing. The benefit is that people will respond well to a downtown that is playing as a team. "Arts and cultural events that happen in down- town areas tend to be less self-contained," says Solo- mon of Carytown Merchants Association. "Galleries have teamed together in order to promote each other. Retail businesses and restaurants do the same. In a way we work together to create a neighborhood of people who want to be involved in the neighborhood. So our base might be smaller yet they are more involved." Ie Involve residents in downtown Involving new residents in downtown loomed large on the minds of several people we talked with. "The increasing number of people moving into urban areas across the country provides a wonderful new opportunity for downtown organizations and businesses to take advantage of an untapped pool of individuals to draw on for board and committee mem- bership," says Joanne Gonzalez, vice president of cre- ative services, Louisville Downtown Management District, Louisville, KY (pop. 256,200). "Residents bring a different view of urban life to the table - one that includes 'the other half' of the day, from 6 p.m. to 6 a.m." This obviously creates new marketing opportunity for downtown businesses, but it comes with new political challenge, as down- town residents are emerging as a power center. "Historically, decisions made for downtowns were based on what is best for business, but that is changing," Gonzalez observes. "Input from those who live downtown needs to be considered. That's true not only for major impact items like building an arena or planning a new skyscraper, but lesser ones, like scheduling trash pickup at 3 a.m., or closing streets on the weekends for festivals or races, which prevents residents from leaving their homes or returning to them." Many downtown organizations, she says, "are now creating positions on their boards to provide a more formal voice for the residents, not for their com- plaints, but for the new ideas and different points of view that they present." e Shed idea that anti-big box is anti-business "Downtown officials have to stop guilt-tripping themselves that if they speak anti-big box that they are anti-business. The two are not synonymous," maintains Al Norman, Sprawl-Busters Consultants. "One can be pro-managed growth, and pro develop- ment at the same time. Most downtown groups either hide when Wal-Mart proposals come to town, or they shrug off the advent by saying that their customer base is loyal, and downtown will survive. Then they watch as the hardware store closes, the bookstore closes, the clothing store closes, and they are left with a string of moderately successful boutiques." So what are downtown leaders to do when such proposals come to town? "Downtowns need to orga- nize their presentation, and their voice, and speak hrvno.C'th.r ';'I1~t'h lr'\f""~l ....0.".;,.10......1-(' 1'l""r'\l'1t ~:nl",,:r l(v.~l 't'"V'ID't"',_ -~~;'-'-"';''''-j <,-_.- ----- -------...-..... .............-- """"'J -..........-.... -.......-- chants are a better economic investment than a pub- licly traded national corporation. They have to stop pretending that you can add several hundred thousand square feet of shopping space into a small town that has seen no dramatic population growth, and expect all boats to rise. They need to have a solid economic argument in hand about why downtowns will break if they are surrounded by big-box sprawl on the edge of town," Norman says. Capture the unique experience of downtown "The only true value a downtown area can offer its city is its position as the 'place' that people think of in their mind's eye when they hear the name of the city," remarks Ron Atkinson, downtown develop- ment officer, Charlottetown, Prince Edward Island (pop. 32,250). The challenge for all downtown marketers, he says, is to "capture the unique experience or feeling of simply being in that downtown." "The opportunity is in discovering that sense of specialness that your downtown has, that specialness that visitors can see but that the rest of us may not because we live and work there. Perhaps we haven't actually seen that specialness for a very long time even when it's right in front of us," he says. "The threat of course must be the creating and. selling of a cookie-cutter downtown with uniform and pristine buildings and sidewalks. Nice, but there's another one just down the road. It has been said that a great man doesn't remind you of anyone else. I want to experience a downtown that doesn't remind me of anywhere else." . January 2007 Downtown Promotion Reporter . www.DowntownDevelopment.com 5 1 looking Ahead ... to July July is prime time to celebrate love of country, cuisine, art, and e film. Chalk and chocolate a tasty summer combo! Fireworks Safety Month There is no safe way for amateurs to use fireworks. Remind through the media: It's only safe to see fireworks at a professional display, preferably over the down- town park or waterfront. www.preventblindness.org Whether downtown is aim- ing to attract people by appealing to their patriotism, appetite, or passion for art and cinema, July is a month full of terrific oppor- tunity for downtown events. Not the same old fireworks With limited open space and the tallest buildings in the area, the heart of downtown often isn't the most suitable place for a Fourth of July fire- works display. But downtown is always the most appropriate place for a parade. And a good, old-fashioned parade can be more relevant and beneficial to the community's ownership in downtown than any fireworks display. Plus, there are always ways to do something different with this traditional theme. The Gatlin- burg Midnight Independence Day Parade, for example, com- bines the patri- otism of the .~. Fourth and late-night anticipa tion of New Year's Eve. This will be the 32nd year for the event in downtown Gatlinburg, TN (pop. 3,380). More than 100 volunteers sign on to help bal- loons and floats navigate the streets of downtown. Contact: George Hawkins, City of Gatlinburg, (865) 436-0526, www.gatlinburg.com. M Iff 1'--cU 'ilJ"O_- (-~ fl"" .O! i ! I r,{; .:'-~ i i ! I' IW1i I I: ____J __i ;...____I_.J \ : MAINE INTfRNATIONAL fILM fESTIVAL Make July a blockbuster With schools out and many people taking time off, July's a good time for festivals that people can plan small trips around. Friends of Art & Film in Central Maine, for example, will produce the 10th annual Maine International Film Festival (MIFF) in downtown Water- ville, ME (pop. 15,610), July 13-22. Over 80 films are shown dur- ing the event, representing what organizers consider the best of new American independent and interna- tional cinema. The festival program also spotlights some of Maine's and New England's filmmakers. "Our attendees are definitely interest- ed in learning about film, and, more im- portantly, from the people who are involved in the film- making process," says Shannon Haines, fes- tival director and also o' ~ ndirector, Waterville Main Street. MIFF attendees get to meet and talk with some of the people behind the movies, as honored guests and visiting filmmakers host post-screening panel discus- sions and informal Q&A sessions. The Maine International Film Festival is promoted through national press releases, brochures (12,000 printed and mailed), posters, and local and regional paid advertising. Last year brought a record high of over 8,500 film admis- sions. Only about 25 percent of festival attendees come from the Waterville area; the rest come from all over Maine and New England. "We hold the majority of our receptions and par- ties in downtown restaurants. Retailers get involved by participating in a downtown storefront display contest (MIFF/movie related) and offering special sales and activities during the festival," says Haines. Many downtown businesses advertise in the festival program, and some offer special attendee discounts. Half of the festival's funding comes from ticket sales, and half from sponsors, grant funding, and individual donors. Contact: Shannon Haines, Maine International Film Festival, (207) 861-8138, www.mijf.org. Show Dr's various flavors A food sampling festival will please most people most of the time, and works well in July. Abe Lincoln's own Springfield, IL (pop. 111,500), for example, will host the 8th Annual Taste of Downtown on July 7. More than 25 downtown restaurants will participate. Contact: Downtown Springfield, www. downt ownsp ringfie ld. 0 rgltaste. htm. 6 Downtown Promotion Reporter . www.DowntownDeve/opment.com January 2007 l l l 1 I j 1 I I j , 4 I ~ ei ~ I e . Paint the street and eat the sweets at Chalk & Chocolate Chocolate goes well with a lot of edible things - and downtown Windsor, Ontario (pop. 208,400), has found that street chalk festi- vals is one of those non-edibles it also goes well with. Downtown Windsor's Chalk and Chocolate Festival drew near- ly 2,500 people for its debut last year. A street chalk artist from Toronto was hired to share some tips on technique with attendees. A competition open to amateur and professional artists was held, and prizes were awarded in vari- ous categories. Downtown restaurants created special chocolate confections and kids' meal specials for the day. Live music, a children's play, and other activities including a choco- late cake eating contest filled out the event. The first 250 kids to i t t . arTive received free goodie bags containing donated chocolate treats. At the risk of stating the obvi- ous, chocolate events - especially in the summertime - need to take place indoors, says Judith Veres uk, executive director, Downtown Windsor Business Improvement Area. "People really want to see things like chocolate carving and perhaps chocolate making. Because of health and safety as well as the whole melting factor, people should really look for indoor venues that are adjacent to your outdoor site," she advises. "You can even look at using vacant storefronts to have a makeshift display area." Also, make sure there's plenty of space for people to safely navi- gate the street chalk artworks. Contact: Judith Veresuk, Downtown Windsor BIA, (519) 252-5723, jvere- suk@downtownwindsor.ca. . t . July is . . . Anti-Boredom Month Baked Beans Month Blueberry Month Fireworks Safety Month Hot Dog Month lee Cream Month National Peach Month July 1 Canada Day Financial Freedom Day Creative lee Cream Flavor Day July 4 Independence Day July 7 Chocolate Day Strawberry Sundae Day July 8-14 Therapeutic Recreation Week July 14 Bastille Day July 15 Ice Cream Day Gummi Worm Day July 15-21 Hug Week July 16 Juggling Day July 20 Moon Day Sir Edmund Hillary's birthday National lollipop Day July 24 Parents' Day Amelia Earhart Day I t \ January 2007 Downtown Promotion Reporter . www.DowntownDevelopment.com 7 Marketing adiusts to a changing market (Continued from page 1) "And when you're a seasonal business, you've got a lot of shoulder seasons, off seasons, and slow times that make things difficult. It's not like you can draw more people from some of the surrounding towns that are 50 or 60 miles away to just come shop in your downtown." The town's economy is healthy but not growing when looking at sales tax as an indicator, the task force reported to council last July. Adjusted for infla- tion, sales tax increased an average of I percent per year in seven years, as property values rose signifi- cantly. That evidenced anemic sales growth. What's more, the task force said, the health of the Telluride economy is more than a bottom line eco- nomic exercise. It requires: · Creating a successful business environment, · Supporting downtown as the community core, · Creating a positive first impression, and · Fostering positive experiences for visitors and community members. And while some industries continue to thrive, the industries that make up downtown's cultural, social, and entertainment core - restaurants, bars, retail, and lodging - traditionally struggle. All industries within the town's business commu- nity have unique challenges, the report says, but the economic health of the commercial core (made up of 143 businesses, or less than 10 percent of active busi- ness licenses in 2005) impacts all industries in town. Top challenges that downtown biz: perceives Using the results of a survey of ground-floor and below businesses throughout the commercial core, the task force identified these top 10 challenges for successful business viability in the Telluride com- mercial core. 1. The high cost of doing business 2. Insufficient number of visitors/customers 3. Inadequate downtown parking 4. Poor guest retention · Poor customer service · Insufficient infrastructure · Atmosphere - cleanliness and dog control 5. Perceived poor attitude of town government toward the business community 6. Difficulty in finding and retaining suitable employees, particularly noting the need for more affordable housing 7. Inadequate mix of businesses 8 8. Inadequate new or small business "incubator" system 9. Difficulties for businesses not located in the central core of Colorado Avenue (the main street) 10. Inadequate "support system" for businesses. . Responsibility must be shared, communicated The number two challenge, the insufficient num- ber of guests and visitors that Telluride receives, is a marketing issue. Through business license fees, the town funds a marketing organization known as Mar- keting Telluride Inc. It's a year-old organization that replaces a previous chamber of commerce-style tourism marketing body that was not effective. Some of these other top 10 challenges downtown businesses cited are in the purview of the town to address, and some challenges sit squarely on the shoulders of the downtown business community. Marketing Telluride can certainly help businesses improve their standards of customer service, promote downtown events, and keep businesses well informed about who's in town. Businesses must step up in things like employee training, adjusting to customer tastes, involvement in downtown marketing efforts, and attention to store cleanliness, window displays, and product presentation. The town can improve its communication with and support of the business community by hiring a community business coordinator to work as a busi- ness advocate and liaison between the town, business- es, and Marketing Telluride. The business community feels that the town gov- ernment often doesn't weigh its decisions on what's best for downtown or main street merchants, Siegel says, and hiring a community business coordinator, funded by an increase in business license fees, can easily address that concern. ~ . 1 New campaign plays isolation as a strength For its part, Marketing Telluride Inc. recently launched a new advertising campaign, and has been evaluating strategies about how it should place mar- keting and potentially diversify its target marketing to attract more people to town. "I think that will play its role. But one unique thing about Telluride, which stands as one of its . Downtown Promotion Reporter . www.DowntownDevelopment.com January 2007 , f / strengths and could be one of its weaknesses, is its sheer distance from any major population. That will always playa role in how many people we're actually able to attract to this area," says Scott McQuade, CEO, Marketing Telluride Inc. "But in our new campaign, we've actually used that as one of our strengths and not one of our weak- nesses. That this is a place that, because it's remote, you'll find that it has scenery and attributes that real- ly no other res011 can offer, not only in Colorado but in the nation," he says. A photo of a cozy downtown in the foothills of a snow-covered mountain (see below) appears in one of the new advertisements. Marketing Telluride will be developing ads catered specifically to what it calls the "rubber tire," or regional/drive-in market, and national fly market. . Giving businesses a hand with customer service A community-wide customer service training program is also planned by Marketing Telluride. So- so customer service, McQuade says, is one of the top issues downtown needs to address. What sustains a downtown in a destination market, he says, "is really customer retention, bringing your customers back yearover year. It's simply very expen- sive to attract new customers every year." A key aggravating factor behind the customer ser- vice issue is high employee turnover. Young ski buffs typically come to work in Telluride for the winter, but many have no interest in a service career, and despite high wages, find it a prohibitive- ly expensive place to settle and establish roots. Couple that high turnover with the fact that "the demo- graphic of the Telluride visitor has changed significantly over the years," Siegel says. "It used to be a dirty hippie town. Everything was pretty funky and that was part of our charm and character. Now we've got 15,OOO-sq.-ft. houses in the mountain village, and million- dollar homes in town. The cur- rent visitor is fairly well-to-do, and typically has fairly high expectations and levels of ser- vice that they expect." . . I , , Product mix needs to offer diversity, value In terms of the downtown product mix, there are many restaurants, and some are fine restaurants priced on the high end. "But I think customer surveys show that there's a lot of people who think they may not be as good as they're charging," Siegel says. Downtown has to also work to ensure that there's a healthy and diverse mix of businesses with minimal redundancy. A big challenge here for stores is in cater- ing to the needs of the wealthy tourist and part-time resident homeowner as well as service workers. "We don't need another pharmacy, hardware store, or music store," says Dirk de Pagter, chairman, Marketing Telluride Inc. "They can make it on their own just fine, but the competition would kill 'em. I've seen too many business models fail just because of lack of volume." Marketing to keep second homeowners in the loop "We have been very successful in turning things around - getting the right reporting, getting an under- standing of what's going on. And we're now in the mar- keting phase for next summer, where we can piggyback more on particular events," de Pagter says. "One of the directions that I think Marketing Tel- luride really will be taking too is to make sure that our second homeowners are aware of all of the great events that we have going on through the year, so they use their home or their facility more frequently." For example, people come from far afield to Tel- luride for its Fourth of July cele- bration. "People love it," de Pagter says. Marketing Telluride will be looking at using this success as a model for other times of year, "expanding particularly our sea- son prior to Christmas with a more traditional Christmas feel. Where people understand this is what Christmas is supposed to be like. Initially it might just be the second homeowner, grandma and grandpa, mom and dad. But the next year they'll be bringing their kids because it'll be a lot of fun." Contact: Scott McQuade, Marketing Telluride Inc., (970) 728-3041, ext. 51, scott@visittelluride.com; Dirk de Pagte I; di rkdepagte r@telluridecol- orado.net. . Telluride plays up its remote location with promo- tional photographs such as this, which appears in a new print ad from Marketing Telluride Inc. January 2007 Downtown Promotion Reporter . www.DowntownDeve/opment.com 9 Advertising Ad illuminates downtown's good design taste, partner leverage "Show don't tell" is sound advice in advertising as it is in everyday storytelling. For example, here's a simple yet effective newsletter insert ad from the McMinnville Downtown Association (MDA), McMinnville, OR (pop. 26,500). Somehow, the ad - a poster version of which also appeared in downtown stores - made the offi- cial turning on of eight new street lamps seem a good reason to party and dance downtown on a Sat- urday night, as evidenced by the roughly 300 people in attendance last September. Friends of downtown who receive the MDA newsletter were no doubt captivated by this glossy insert that boldly proclaims: "Oregon's favorite main street turns on! ... Join us as we celebrate our new historic street lamps and the 20th anniversary of the McMinnville Downtown Association." Full-color photos of the street lamps figure prominently on the front of the insert. On the back, there's a schedule of events for the Saturday evening street party. A wallpa- per-like backdrop shows a zoomed-in, tilt- ed schematic of the street lamp's design details. Does the public really need to be sold on lamps that feature a "1910 12-inch x 12- inch poly acorn," or an "underside finish in high reflectivity white enamel"? Not unless they're buying some for themselves. But incorporating the manufacturer's design schematic made for a fancy ad, and shows that downtown is a place where high design and good taste are celebrated. The ad also shows that the McMinnville Downtown Association is an organization worth contin- ued support, as it chooses and spends wise- ly, and leverages its resources with partners. "The new historic streetlights, installed along Third Street from Baker to Davis, rep- resent a partnership between the Downtown Association, the City of McMinnville, McMinnville Water and Light, and the con- tributions of the community. You're invited to celebrate the new lights and the 20th Anniversary of the MDA," the ad reads. Downtown's marketing committee includes the owner of a design house - 10 named Gearbox Studios, which designed the ad. The designer's business relationship with a printer enabled the MDA to order high-quality prints at a low cost. The bill came out to $1,093 - $700 for the design work and $393 for printing store posters, promo postcards, and one thousand 8.5 by ll-inch inserts that were mailed with both the downtown and chamber of commerce newsletters. "The poster was what dropped people's jaws. It was just so different and so unusual. I think that's why we got such great attendance," says Patti Webb, manager, McMinnville Downtown Association. Ahead of the street party, the local newspaper also ran an article and ohotos about the street lamp installation. Contact: Patti Webb, McMinnville Downtown Association, (503) 472-3605, patti@downtownmcminnville.com. . Downtown Promotion Reporter. www.DowntownDevelopment.com January 2007 . i J I j . l ~ l 1 . f I I lie ................................................................................... i . . , , \ Tell travel professionals what makes your downtown special If you are looking for a new way to promote your downtown to visitors, consider targeting trav- el agents and editors. For exam- ple, the Chapel Hill/Orange County Visitors Bureau issued a press release last fall touting the attributes of downtown Hillsbor- ough, NC (pop. 5,450). "Whether you are interested in traveling for the holidays or looking for a quick getaway, Hillsborough is a great place for a day trip in North Carolina," says the Visitors Bureau. The press release included information on parking, local eateries, unique shops, and histor- ical sites located downtown. Keep ongoing promotions fresh by expanding your branding eHorts The Hult Center for the Per- forming Arts and Downtown Eugene Inc. (DEI) are working together to breathe fresh life into the. Hult Center's dinner and a show promotion, That's the Tick- et! The promotion ties into DEI's branding campaign, which posi- tions downtown Eugene, OR (pop. 137,900), as the "Arts & Entertainment Epicenter of the Region." Among the efforts to increase interest in the promotion, which has been running successfully for a number of years: · A write-up in Hult Center's quarterly events calendar, which has a circulation of about 40,000. · Links to all participating restaurants at www.hultcenter.org. · An article in the Downtown E-news. · Inclusion of That's the Tick- et! in Hult Center advertisements in the local newspaper. · A news release sent to all primary media contacts. Holiday party livens up downtown A vacant storefront proved the ideal location for the annual Boonton (NJ, pop. 8,500) Main Street holiday party. The organiza- tion hosts the holiday party to thank members and volunteers for their support. This year, the venue was a large vacant retail space on Main Street. For one evening, the usual- ly dark storefront was a hive of activity. Members contributed the food, drink, decorations, and door prizes for a raffle. But the best part was the added foot traffic, music, and excitement on down- town's main street during the holi- day season. Promotion asks shoppers to support downtown merchant and local charities Downtown Traverse City, MI (pop. 14,530), drummed up some downtown business by encourag- ing people to buy local and con- tribute to charity at the same time during the recent Shop Your Com- munity Day. Nearly 50 businesses took part, and were given special shopping bags and balloons to sig- nal their participation. For every purchase, 11 percent of the price ISSN 0363-2830 Downtown Promotion Reporter a publication of the Downtown Research & Development Center 28 West 25th Street - 8th Floor New York, NY 10010-2705 Phone: (212) 228-0246 . Fax: (212) 228-0376 Email: info@DowntownDevelopment.com Website: www.DowntownDevelopment.com Editor Paul Felt, ext. 119 pfelt@DowntownDevelopment.com Customer Service Mary Pagliaroli, ext. 101 mpagliaroli@DowntownDevelopment.com Reprints and Permissions Mary Dalessandro, ext. 103 mdalessandro@DowntownDevelopmeltt.com Publisher Margaret DeWitt, ext. 106 msdewitt@DowntownDevelopment.com Downtown Promotion Reporter@ is pUblished monthly by the Downtown Research & Development Center. The Center provides news, information and data for successful downtown revitalization through it() newslet- ters, books. reports, and website. ') Alexander Communications Group .. <9 2007 Alexander Communications Group, Inc. All rights reserved. No part of rhis pub- lication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying or otherwise, without the prior written permission of Alexander Communications Group. Subscription Order Form: Please start/renew my one- year subscription to Downtown Promotion Reporter for $197.* NAME TITLE FIRM/ORGANIZATION ADDRESS CITY STATE ZIP PHONE FAX EMAIL N15 4J MAil: 28 West 25th Street - 8th Floor New York, NY 10010 6b FAX: (212) 228-0376 W PHONE: (BOO) 232-4317 @ EMAll: info@DowntownDevelopment.com , North America. $197. Elsewhere, $227 (includes airmail delivery). January 2007 Downtown Promotion Reporter . www.DowntownDevelopment.com 11 ~T LB x ~ ............................................................................................................................... . A was donated to a participating local non-profit organization. Customers were able to select a charity from a list of eligible groups, which was available at each store. Getting a new event oft the ground requires an eye-catching campaign When Grand Forks, ND (pop. 49,320), put together its first Art Fcsl CVClll, thc urganizers neeueu a marketing campaign that would attract attention. After all, they couldn't build on the success of earlier events. And word of mouth, which works so well for established events, was obviously out of the question. So the organizers developed a creative campaign using local celebrities to build interest. The marketing efforts also included a theme song and "Oh Yeah" tag line. In-kind media sponsorships helped supplement the marketing budget. As events grow, watch out for conflicts Events that start small tend to grow as their success builds. But as events get bigger, you need to keep an eye on potential conflicts. Events that once were complemen- tary may now be in direct competi- tion, limiting the success of both. For example, in Kelowna, BC (pop. 96,290), both the annual Mardi Gras Street Festival and the Kelowna International Regatta were held on the same weekend. But as the two events continued 12 Downtown combines public art display with scavenger hunt to unite popular types of events As all downtown organizations know, funds are often in short sup- ply, so it makes sense to get the most out of an event. For instance, the Downtown Seattle Association (DSAj was able to take full advantage of its dollars by uniting two popular types of events. In a pubic art display, downtown Seattle, WA (pop. 563,400), was home to 60 life-size sculotures of nutcrackers last vear. As i's common with such even'ts, the statues were auctioned off. The DSA leveraged the event even further by sponsoring a nut- cracker scavenger hunt. Participants were asked to identify 15 of the nut- crackers with the help of riddles and close-up photographs. to grow and mature, such schedul- ing no longer made sense. So the Downtown Kelowna Associatio[l simply changed the weekend for the Mardi Gras event (which is held in August!). It's an easy solution to a potentially damaging problem, but it does require getting the word out to make sure that people know the dates have changed. Ofter regular vendors discounts on event booths Boulder Creek Events has found a way to thank vendors for their continued support of down- town Boulder, CO (pop. 94,670), and give them an incentive to take part in special events. The event organizer offers a one-third discount to Boulder . County Farmers' Market food ven- dors who apply for a booth in the main food courts (a savings of $467) or a cart space (a savings ranging from $300 to $383) for the annual Boulder Creek Festival. Run your event like you would a company Approach managing an event as you would run a company, Karen Alston, president of Alston Marketing Group, tells the Local Initiatives Support Corporation's Network News. She recommends dividing the various aspects and responsibilities of the event into different "divisions," such as: bud- get, entertainment, food/catering, logistics, marketing and publicity, security, sponsorships, and venue. www.alstonmarketing.com . . Downtown Promotion Reporter . www.DowntownDevelopment.com January 2007 I . Farmington City Council/EDA Joint Meeting Strategic Planning Monday, January 22,2007 City Hall 5:30 - 9:00 PM Agenda I. Call to Order - working meal/light supper 5:30 II. Overview of the evening - Craig Rapp 5:45 III. Addressing Strategic Challenges - Actions, Timelines, Accountabilities 5:50-7:15 IV. Break 7:15-7:30 . V. Developing Action Steps, Timelines, Accountabilities 7:30-8:30 VI. Summing Up/Next Steps 8:45-9:00 VII. Adjourn 9:00 . . . . Springsted 10 To: Peter Herlofsky, City Administrator From: Craig R. Rapp RE: Interview Summary - Farmington Economic Development Strategy Date: January 16,2007 The following is a summary of the interviews conducted by our project team regarding economic development in the city of Farmington. The information presented has been aggregated in order to maintain the anonymity of the persons interviewed. However, specific comments, and the issues raised are sufficiently detailed to enable the City Council, EDA and staffto understand the concerns raised and the suggestions offered. The following process was used to gather information: ~ A standard questionnaire was developed ~ One-on-one interviews were conducted with the following: o Mayor and City Council o Economic Development Authority members o Selected City staff o Selected business and property owners ~ The interview team (Craig Rapp and Peer Team) discussed and summarized the findings Although the questions developed were used by all interviewers, each interview was tailored to elicit the maximum value from each participant. Specifically, our goal was to allow each participant to give us their unique perspective. In sorne cases this meant deviating from the standard questions and simply pursuing issues raised in the interview, in others it was a combination of set questions and additional discussion. In all cases, we were successful in engaging the interview subjects in a wide ranging discussion about economic development in Farmington. The answers listed are those answers that were given by a majority of the respondents. In that way, we are representing the strongest opinions of the entire group, not just the . opinions of an individual or small number of those interviewed. At the end of the summary, we have included a few opinions that were not widely held, but we believed represented important perspectives that should be shared with the City. Responses I. Interest in Economic Development Everyone interviewed expressed a strong, professional or personal interest in economic development and most wanted to help the City move forward and thrive. For the most part, participants indicated that this economic development strategy formulation approach is a good one, as long as Council gets behind it and stays behind it. 2. How would you describe Farmington's business climate? The themes that emerged confirmed that the City is primarily a service oriented economy with its future potential related to the pace of residential growth. The business climate is viewed more regionally than as a micro, or local economy. . . Many thought that the commercial/office sector is the strongest with banking, legal, and insurance businesses. . They noted that Farmington is a "little off the beaten track" for commercial development, because 1-35 is so far away. . The industrial sector is viewed as being in a holding pattern with little available land to grow. The respondents believed that the City must be ready to act when land in the western part of the city opens and the agriculture designation drops in 2012. . Given land prices in surrounding communities, it was observed that Farmington may have a competitive advantage . The retail sector has little to offer the residents with so much competition close by. There are three Super-Targets in close proximity that are keeping investors out of Farmington for now. . The Burnsville model that was examined was mentioned by several people - noting that follow-through should be happening. . Many felt that there is pent up demand and potential, but that for whatever . reason, entrepreneurs aren't taking advantage of it. . 3. City efforts in attracting, retaining, and expanding business Nearly all participants indicated that the City is unorganized, limited, and haphazard in its economic development efforts. It was generally felt that the City is not proactive. What does it do well? o Now moving in the right direction o Incentives on land o Changing approach to development fees . How could it improve? o Get well qualified economic development professional on staff o Need to get consensus and consistent support for economic development efforts o Stick with whatever goals you choose. . . the Council changes their minds too frequently o Need stable City Hall o More communication with developers is needed, for example, some cities have quarterly updates for developers on projects and progress, plus take input o Public relations (ambassador type) o Be much more aggressive 4. Greatest challenges facing the City as it attempts to create a successful economic development strategy: This question seemed to have the widest range of responses. The themes most frequently mentioned were: . . Getting everyone on the same page · Especially businesses working together · Need to speak with one voice (EDA, Chamber, Planning Cornmission, City Council, County) . Creating a plan . Overcoming poor decisions of the past . Not actually ready for development challenges . Getting a qualified econornic developrnent professional . Overcoming resistance to change/growth . Having the outside world view Farmington as ready for development . Growing, yet keeping a small town . Not being risk averse . Confused electorate . Getting townships to cooperate . Very costly to do comprehensive economic development . Coordination with Comprehensive Plan . 5. Farmington's Best Assets: Nearly everyone indicated that the downtown was the city's best asset. The interviewees liked the: . . Historic nature of the downtown . Small town feel . Quaintness of the space . Stronger service sector . Some active restaurants Conversely, they also thought some things about downtown could be improved: . Businesses need to work together more with some common goals. . Need more events to attract and keep people in the area . Restaurants need to get more with the times. Other city assets frequently mentioned were: . . Vermillion River . We have time to plan this thoughtfully . Great residents (educated, thoughtful, interested in the City) . Good governance . High Growth potential . Nice place to live: trials, parks, neighborhoods . Still has open-space 6. Why invest in Farmington? This was a difficult question for many people; however, there were a number of common responses: . . Great place to live (Small-town atrnosphere) . High growth potential · When housing market rebounds, it will explode with numerous lots - leading to increased demand for goods and services . Good investment (medium term) . Red Carpet for new investors (Council is open to new business) . Staff trie~ to be helpful and easy to work with. . Good environment for small to medium sized businesses . Good schools . . . - Other Comments/Suggestions: 1. The school will be adding facilities (hockey) that will be attracting tournaments to the City. The City could use a good hotel and restaurant to capture the dollars frorn these kinds of events. Also, when people visit the industry in town, there is nowhere for them to stay. 2. Be mindful of development along Hwy 50. It could lead to more problems for the downtown. 3. Highway 3 needs widening - inattention will slowly stifle progress. 4. Figure out how to work with the townships 5. Residential market is good.. .land prices between buyers and sellers show some differential - people asking "way too much" for undeveloped land. Again, what is the "mix" of housing that the city is looking for? 6. Has there ever been a survey of the businesses located there to see why they chose Farmington and is there a business retention program? 7. Let the private sector do what it does best - keep the city focused on public sector duties . 10 Springsted Economic Development and Downtown Revitalization: A Review of Trends and Best Practice City of Farmington January 2007 Introduction The City of Farmington is undertaking a concerted and focused effort to create a plan to guide economic development. To assist the City in this effort, a review of research, current trends and best practice has been conducted. The following is summary of our findings. Is development of an economic development strategy worth the effort? . This question was the starting point for our research. Because the City of Farmington will be investing time and resources on economic development it will be important to understand how irnportant a city plan will be to a successful outcome. Many of the factors that influence city economic development success relate to national economic trends. As a result, there is little that the individual city can do to affect those variables. There are, however, many policies that a city can control which can have a direct bearing on its competitiveness (Kresl, 1995). Research also indicates that although there are critical influences on competitiveness beyond the control of city policy-makers they need not be passive actors. 'Good' policy can equip cities to adapt and to foster a dynamic economic environment Fisher (1998). Development of good policy was a common theme amongst those who have achieved economic development success. Of all of the lessons learned, the primary recommendation from successful communities was: Focus your attention on issues within your control and create strategies to maximize your impact. . While this may seem self-evident, it is often difficult to adequately articulate the range of issues that a local jurisdiction can, or should address when contemplating a local economic development effort. The following is a list of policies and positions that successful cities identified that contribute to economic development success: . . A Shared Community Vision, including: o Public outreach campaign, targeted at informing citizens about their future options and alerting them to the opportunity to help mold the future o Focused communications (newspapers, etc.. . ) o Fostering a core group of people to help begin the implementation process through collaboration and cooperation. . Cooperation among the chamber, government, etc. (no turf wars) . Having a plan and sticking to it (patience) . Articulation of a well-thought-out and clearly expressed strategic plan . Focused Leadership- all members of the process aligned and committed . Effective governance - consistent, clear processing and decision-making . . A supportive regulatory environment - creating policies and approaches that support private investment . Understanding the regulatory environment -particularly how it affects the ease with which business can operate, while also contributing to the physical and social environment. . Attitudes toward land-use planning - understanding how this will bear on the types of economic activity that are able to flourish. . Public support of cultural activities - and for developing the civic amenities as key 'assets' of the city - such as city festivals. . The taxes and charges levied by the authorities - these along with some of the cost-alleviating services cities provide contribute to the relative attractiveness of locations. . Investment in reliable, accessible infrastructure and services . Inclusiveness of all social groups . Promotion of smaller firms . Ensuring an adequate complement of business and financial service providers . . Social and environmental factors, such as o The quality of residential accommodation o The crime rate o Schools . Beyond these local policies and approaches, there was one additional notion that was cited that was important, but pushed local government leaders from their comfort zones: "Get Comfortable with Concept of Failure". While this seems almost impossible in a government setting-economic development, more than any other municipal endeavor contains the element of risk. The concepts of venture capital, creative risk taking and entrepreneurial leadership are the stock in trade of new business development, and government is challenged to understand, if not embrace these notions. The following excerpt illustrates the point: Howard Bell, executive director for TechTown, the Wayne State University-affiliated high-tech incubator that opened two years ago in Michigan, told a session at the Detroit Regional Chamber's Mackinac Policy Conference that political leaders "need to get comfortable with the concept of failure." Speaking as part of a panel on defining Michigan's leadership agenda, Bell said that leaders can't get bogged down worrying about failure or trying to play it safe. They need, he said, to emulate the entrepreneurs he deals with - people who know that failure is an inevitable part of being creative and trying to improve the world. "As we move forward with new technologies, we don't really know where we're going. A lot of the entrepreneurs in the new technologies are going to fail as part of the process," he said. . "You need to be a marathon-oriented group of leaders. You can't worry about being chastised for failure." Fellow panelist Edsel Ford II, civic leader and president ofWaterford Township-based Pentastar Aviation, said first and foremost leaders need integrity. "If you don't have integrity, you don't have any leadership skills." From: Henderson, Tom. "Panelists: Leaders shouldn't try to play it safe." Crain's Detroit Business 22.23 (June 5, 2006): 25. A Measured Approach to Chasing Development As Farmington considers strategies for economic development, it is important to understand the reality of chasing huge boxes of retail or production space. Economic development programs continually focused on attracting industry as the most effective strategy for job creation have often failed. For many communities, and in particular rural areas, this strategy often "lines the pockets" of the real estate development community while creating less than living wage jobs in big box stores that undermine local retail and service enterprises. . In contrast, those communities able to retain retail and service sector local businesses may see profits invested locally and contributed to local causes. The result, according to Rupasingha and Goetz (2003) is that "self-employment is associated with lower poverty . rates, while the presence of Big-box retailers is associated with higher poverty rates." Community leaders often assume that incentives offered for relocations will be returned many times over in new tax revenue and support for schools and local infrastructure. The reality, however, is much different. Relocations often create new costs in the future when infrastructure ages, the workforce needs change, or the incentives run out and the operation moves again (Humphrey, 1988; Flora & Flora 2004). An aggressive strategy to "chase" development also requires significant staffing and operating funds to support the necessary travel and public relations costs. Small communities such as Farmington generally do not have the resources to do this. The reality however, is that industrial recruitment, while generating jobs in some communities, accounts for only a small portion of overall new job creation. Indeed, research indicates that this strategy has limited effectiveness for most cities (Kauffman, 2002). "Grow Your Own" as a Strategy . The most effective approach may be to adopt an "enterprise development" strategy, which sirnply means supporting the development of small to medium sized business in the community through a variety of proactive measures. According to Thomas S. Lyons (2002), "Enterprise development is increasingly recognized as a relatively low-cost, 'bottom up' strategy for economic development that is particularly well-suited for a variety of rural and urban communities" (p.1). The following is put forth as a rationale for focusing on a "growing your own" strategy for economic development: 1. The rnajority of businesses are small or medium sized, and they employ the majority of people in the United States. 2. Entrepreneurial growth cornpanies account for "at least two-thirds of net new jobs in the Arnerican economy" (Kauffman, 2002, p. 3). 3. Small businesses incubate innovation leading to new businesses opportunity. They are responsible for more than 50 percent of all innovations, 67 percent of inventions, and 95 percent of all radical innovations (Kauffman, 2002, p. 5). 4. We are living in a "new 'Entrepreneurial Age' in which entrepreneurs and their companies are transforming the economic landscape." (Kauffman, 2002, p. 4). 5. Entrepreneurs, those focused on innovation and fast growth, comprise 5 to 15 percent of all U.S. businesses (Kauffman, 2002), and there are some in every location. 6. Entrepreneurs and the companies they lead playa critical role in fostering economic prosperity and are vital to our ability to compete internationally. . 7. Fast growth companies occupy a variety of business sectors, but they often start at the . kitchen table or in the garage with less than $50,000 (Kauffman, 2002, p. 7). 8. Both our defense capability and homeland security require a robust small business sector. 9. Once established, a strong entrepreneurial environment in distressed or remote communities can lead to success in regional relocations of related businesses. If the first element in a proactive approach to entrepreneurship is well-organized and effective business support services, then the second essential element is community leadership. Case studies collected at the Heartland Center indicate that service providers alone cannot rnake a successful "grow your own" approach. In the Heartland Center study (2003), leaders play key roles in businesses success by: o Creating a compelling vision; o Communicating the vision to others; o Developing a plan to support business success; o Demonstrating commitment (Wall & Luther, 2003, p. 5). . Communities that are successful in growing their own indicate that "nearly all of the citizens become cheerleaders to promote the successes of new enterprises. They understand the importance of operation between businesses and all other parts of a total community. Where communities focus on creating their own jobs, leaders build a culture to nurture entrepreneurship in all three arenas: civic, social, and business. They also develop a support infrastructure, or system as Lyons described, that addresses the need for services, space, networking, and capital" (Wall & Luther, 2003, page 5). Research on entrepreneur/community relationships reveals the following: . 1. Access: Entrepreneurs need help accessing talent, capital, networks, and infrastructure (Kauffman, 2002, p. 12) as well as an eco-system "mix of good programs, good quality of life, and a culture that encourages people to take risks and start new ventures" (Kauffman, 2002, p. 20.) 2. Community: In today's world, it often takes a community to grow an entrepreneur (Heartland Center for Leadership Development, 2003). 3. Local Resources: A focus on "growing your own" can be sustainable as it draws on local resources, focuses on rnobilizing human rather than financial or built capital, and fosters businesses with personal ties to the community and subsequent commitment to that community (Lyons, 2002). 4. Vision & Culture: Developing entrepreneurial economies in urban and rural regions requires a vision for entrepreneurship among the leadership and a culture that supports and nurtures entrepreneurs, coupled with specific elements including a proactive educational system; access to spaces, services, and information; resources for financing; access to networks and mentoring; and a supportive environment that provides public recognition of business achievement and values and supports people starting out in business (Heartland Center, 2003). . 5. Positive Environment: An Aspen Institute report focused on the need to create a positive environment, provides an educational system that stimulates and prepares entrepreneurs, and maintain a culture that values and celebrates entrepreneurship (Aspen Institute, 1996). A Concentration on the Central Business District or "Downtown" Farmington has evolved from its early days as a free-standing small city to its current position as a growing outer tier suburb. To identify Farmington as a typical suburb however, would be to misstate its unique characteristics, in particular, the downtown area. Given this unique circumstance, and the role downtown will have in Farmington's future, special attention has been given to the challenges of developing and redeveloping a "downtown" district. The specific literature on the revitalization of downtown areas in small secondary cities within metropolitan areas like Farmington is sparse. The research does reveal however, (Robertson, 2001) some of the differences between large and small cities that impact the development strategies and possibilities of each. . The downtowns of small cities like Farmington are more "human scale," meaning that the buildings are smaller and distances between destinations are shorter and thereby walkable. Traffic congestion and crime are usually minor problems in small cities. Local independent businesses dominate the retail sector. Residential neighborhoods are close enough to walk downtown. Historic structures are likely to remain in the downtown, unlike in rnany larger cities where urban renewal, the interstate highway systern, and other development pressures resulted in the removal of entire blocks of historic structures and even entire neighborhoods in many cities. Results from a national survey (Robertson, 1999) on downtown revitalization strategies for 54 non-suburban cities (population 25,000 to 50,000) identify the major problems confronting the downtown areas of such cities: . attracting new development . attracting people on evenings and weekends . competition from discount stores and malls . vacant space Case studies were also available (Burayidi, 2001) on downtown development in non- suburban (free-standing), small cities with populations under 100,000. The results of these case studies provide guidance for implementing programs and policies (which are applicable to Farmington): . (1) Emphasize localfundingfor downtown programs so that the community feels ownership of the process; (2) promote both physical and economic renewal by creating a sense of place in the downtown; monitor downtown revitalization programs and progress so that the . effectiveness of these programs can be evaluated; (3) involve many constituencies-business owners, tenants and landlords, government officials, workers and residents in revitalization efforts; (4) establish a long-term visionfor downtown; and, (5) find out about programs in other communities. Like the recommendations on general economic development cited earlier, the best practices in downtown development and redevelopment relate to what the local government can control and how it should participate in the process. The following are the suggestions most often cited. Many of them overlap or relate to those previously mentioned as best practice for general economic development: Role of Local Government . . Recruiting businesses and developers into the downtown area . Shaping the zoning ordinance to require landscaping and appropriate signage in the downtown area. . Revolving loan funds at below market interest rates to help finance rehabilitation projects. . Take the lead in developing vacant property on the riverfront into a cluster of restaurants. . Acquire Property (assemble pieces) . Taming White Elephants (large vacant or underutilized buildings) . Historic Preservation o Incentives · Historic structures located in National Historic Districts are eligible for federal rehabilitation tax credits. · Low-interest loan program for developers to refurbish downtown buildings. . Downtown Plans and Historic Review: Having a plan and a review board sends a signal that a city is serious about historic preservation Getting People to Come Downtown . Waterfront development is often used to spur economic development in downtown areas that have this natural advantage. The city of Farmington appears to have this untapped potential. Riverfronts offer ideal places for: o Restaurants o A public o Parks with a play area for children . Festivals throughout the year . Farmer's markets during the summer and early fall. . . . . Housing . The development of housing is essential to a healthy downtown - residents provide demand for retail, services and entertainment Review of Key Findings for Downtown Development . Having an organization whose sole function is to advocate the interests of downtown is critical. . Invigorating downtown areas by building on its strengths (density and infrastructure) and enhancing amenities through clustering of restaurants and entertainment options is important. . The purchase and rehabilitation of large vacant buildings or the identification of potential projects for those buildings by each city's Main Street Association will help spur development of smaller buildings nearby. . The revitalization process is different for each city. The goal of these strategies should be to develop a distinctive downtown in which people enjoy spending time and money. Projects should be tailored to the needs of the community. o For additional descriptive information on Downtown redevelopment, see Appendix A This survey of approaches is meant to be part of the foundation upon which the City of Farmington can build its own economic development strategy. As the research indicates, each community is different, and it is important to understand the strengths and weaknesses of the community in order to create a plan that will be viable for the long- term. The ideas presented in this document are intended as a collection of good ideas and starting points for Farmington's journey. . Appendix A: Narrative on Downtown Development The literature on urban economic development is dominated by analysis of the decentralization of population and employment, the resulting decline of the traditional central business district (CBD) referred to hereafter as downtown--and the consequences of both. There is a direct relationship between sprawl (excessive decentralization) and downtown vitality that should be reflected in Farmington's plan. Brueckner (2000) points out that excessive suburbanization reduces "the incentive to redevelop land near the center" contributing to the decline of downtown areas. Numerous policies and projects have been implemented to lure people and businesses back downtown. The movement to revitalize once vibrant urban centers that have gone through a protracted period of decline has gained momentum over the last few decades. KEY POINT: The organization of downtown interests is critical to revitalization efforts. . Downtown areas often lack large tracts of developable land and have a variety of aging historical buildings that are not compatible with the type of development, such as big box retailers, that is occurring in outlying areas. Historic buildings and existing infrastructure within downtown areas offer an opportunity to create a new and unusual combination of activities in stark contrast to what Kunstler (1993) termed the "nowhere syndrome," referring to the anonymity of many newer built environments with the same stores, architecture, and large parking lots. The ability to establish a "sense of place" is one of the strengths of traditional downtown areas. Review of the Literature on Downtown Revitalization The literature on downtown revitalization in the United States is primarily descriptive and prescriptive--describing policies and projects that have worked or not worked in particular cities and prescriptions for how to approach the revitalization process. One result ofthis approach is that specific policies (or projects) that have been successful in one city are often adopted with little rnodification in other cities. Many times such projects are not successful and fail to establish a "sense of place" that makes downtown areas attractive. Policies and Projects Several types of policies and resulting projects have been implemented to revitalize downtown areas. Robertson (1995) provides an overview and assessment of seven approaches that have been commonly pursued: . (1) pedestrianization, (2) indoor shopping centers, (3) historic preservation, (4) waterfront development, (5) office development, . (6) special activity generators, and (7) Transportation enhancements. I. Housing development is an additional strategy. Pedestrianization:. Pedestrian malls did not meet the original goal of bringing people downtown and reversing the decline of downtown retail. Indoor Shopping Centers: The development of indoor shopping centers was another effort to retain retail sales and compete with the suburbs. Gratz and Minz (1998) makes the point that rather than large projects such as downtown malls, the focus should be on incremental changes that "add to the long-evolving, existing strengths, instead of replacing them" (p. 61). West and Orr (2003) argue that such developments have positive spillover effects: increasing community pride and encouraging shoppers to visit other stores and restaurants in the downtown area. Recent trends however toward "lifestyle centers" and "demalling" have contributed to the reality that indoor shopping centers have a limited appeal and effectiveness, leading to a renewed interest in historic downtowns. . Historic Preservation: This focus is on "adaptive reuse" of historic structures where buildings that were initially constructed for one purpose are converted to a different use. Over 48,800 buildings have been rehabilitated in cities with Main Street Programs since 1980 in addition to substantial numbers of new businesses and jobs (p. 455). While some of these buildings may have been rehabilitated even in the absence of the program, Main Street has undoubtedly had a positive impact in communities in terms of being a catalyst for historic preservation and rehabilitation of downtown properties. Waterfront Development: Farmington does have a unique water feature that could be an untapped economic development opportunity. Research does not provide the relatively small scale that is represented in Farmington, rather the studies are focused on larger urban areas. Office Sector: The office sector in the Farmington economy is significant, especially downtown. Research shows that this feature has remained a large component of downtown employment and can serve as "feeders" to stores, restaurants, and hotels in the downtown. Special Activity Generators: Special activity generators such as the planned hockey arena with proposed tournaments have become common components of economic developrnent strategies. The bulk of research and data are on a much larger scale, however the principle of capturing visiting dollars is a typical economic development strategy. . Transportation Enhancements: Transportation appears to be low on the list of concerns for those visiting downtown Farmington. However, planners should keep in mind enhancements that deal with issues surrounding travel time, congestion, safety, and . . . parking. Downtown businesses often complain that potential customers are unwilling to walk more than a few blocks to a store and that adequate parking is crucial to bringing people downtown. The possibility of not finding parking close to the targeted destination is a deterrent to visiting downtown areas. While parking can be a problem in cities of any size, congestion and safety concerns are more prevalent in large cities than in small cities such as Farmington. Housing and Downtown Revitalization: The connection between housing and downtown revitalization has become a common component of downtown revitalization in recent years. Downtown advocates realize that a residential population adds to the quantity and variety of goods and services demanded in a downtown. While activity 24 hours a day, 7 days a week may not be a necessary condition for a vibrant and healthy downtown, a residential base increases the level of activity after normal business hours as provided by Birch (2002). White Elephants Often the rehabilitation of white elephants--large vacant or underutilized buildings--is the irnpetus for downtown revitalization efforts (Moe & Wilke, 1999; Weiler, 2000). Movie theaters, department stores, and warehouses are some common types of white elephants. While vacant properties, in general, signal a lack of economic activity, large vacant buildings are particularly troublesome due to the externalities associated with them. Because white elephants are large and visible, they may have a substantial negative impact of surrounding property values and lead to a cycle of deterioration, a negative externality. Often these types of buildings have historic or architectural elements that provide the unique sense of place that distinguish traditional downtown areas from newer developments, an unrealized positive externality. The rehabilitation of white elephants is one of the core issues in downtown revitalization. These buildings are located in areas with existing infrastructure--roads, sewers, and so on--unlike new developments on the fringe or urban areas, yet these buildings are underutilized. These buildings may be underutilized or vacant for a variety of reasons linked to the landlord's return on investment (or lack thereof). The interior systems, such as electricity and air conditioning, may need to be updated. The costs of these updates or the cost of converting the building to another use (converting a movie theater, for example) may be greater than the accumulated rent or the sales price the landlord would receive. The landlord may continue to hold the vacant property because he or she believes that the value of the property will increase over time. There may be no market for the property: no one is willing to buy it. If property taxes are higher than the value of the property, the landlord may simply abandon the property. Finally, white elephants and smaller rundown properties may result from absentee landlords--building owners that live in another city and do not take care of their property. . . . Revitalization: A Slow Process: One of the challenges of downtown revitalization is identifying viable uses and financing for vacant or underutilized space. It is usually obvious which buildings and spaces need to be rehabilitated-what is less obvious are the potential uses. Revitalization is a slow process most often occurring in increments--one building at a time. It took decades for downtown areas to become "rundown," and even with advocacy it will take time for them to evolve into something different. In downtown areas that have begun the revitalization process, public-private-nonprofit partnerships, intervention of local government, proactive policies at the state and local levels, and continued leadership are needed. The restoration of a few prominent buildings often serves as a catalyst for the restoration of others. Revolving loan funds, tax abatement, and streamlining permit systems are ways that government has encouraged private investment. Cavanaugh (2002) provides case studies of several downtown revitalization projects focusing on the partnerships between public and private entities. Downtown Revitalization: A Brief Look at One Formula: Organizing Downtown Interests - The Main Street Development Approach A key factor in many successful downtown revitalization strategies has been the Main Street Approach. Results from the National Study of Development Issues and Strategies detailed in Robertson (1999) show that the Main Street Approach was the most effective approach out of 16 development strategies listed in the study. The Main Street Approach consists of four principles: 1 organization of downtown interests, 2 design and historic preservation to enhance the built environment, 3 economic restructuring to diversify the downtown economy, 4 marketing and promotion of the downtown (I'yler, 2000). The two most common problems with most Main Street Associations and ones that are likely for Farmington are limited funding and limited volunteer involvement. 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