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.
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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
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K:\HRA-EDA\Board Agendas (2007)\012207 joint CC EDA Agenda.doc
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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.
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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
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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
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FARMINGTON CITY OF
ATTN: AeCTS PAYABLE
325 OAK ST
FARMINGTON, MN 55024-1374
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Detach and Retain This Portion For Your Records
Balance
of Payments
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FARMINGTON CITY OF
ATTN: ACCTS PAYABLE
325 OAK ST
FARMINGTON, MN 55024-1374
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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
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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.
.
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. 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. 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 (Tyler, 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. Perhaps the
biggest challenge for this form of downtown organization is that as membership
organizations, they typically do not have a dedicated source of funding.
.
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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
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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.
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Downtown Promotion Reporter . www.DowntownDeve/opment.com
January 2007
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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"',_
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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.
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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
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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
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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.
~
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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
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Downtown Promotion Reporter . www.DowntownDevelopment.com
January 2007
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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
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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
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Phone: (212) 228-0246 . Fax: (212) 228-0376
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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. Perhaps the
biggest challenge for this form of downtown organization is that as membership
organizations, they typically do not have a dedicated source of funding.
.
.
.
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