incentives to recruit businesses and attract redevelopment national main streets conference, des...
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Incentives to Recruit Businesses and Attract RedevelopmentNational Main Streets Conference, Des Moines, 2011
Rick Ferrell, Retail Market Answers, LLC
Diane Laird, Delaware Economic Development Office, Delaware Main Street
Retail Market Answers, LLCWilmington, DE
Proactive Business Development
Welcome and Introductions
Your participationGoals
…Please silence cell phones
Who we are…
Rick Ferrell Community development:
Main Street (DE, NJ, PA, VA, DC, NY)
20 years experience in Mixed-Use Development Experience
Arbor Property TrustCompass RetailEQK PartnersThe Rouse CompanyForest City Ratner CompaniesStaten Island Ferry Management
CompanyArbor Realty Trust (NYSE; ARB)
Diane Laird State Coordinator
Downtown DelawareDelaware +Main StreetSmall Business Outreach15 towns participating
Previously NCIDQ-certified interior designer, NJ
Who we are…
Margie JohnsonCONSULTING to Small to National Retailers and Economic Development: Comprehensive Business Assessment and Development Revitalizing Sales and Marketing Customer Retention and Loyalty Planning Supporting and Re-energizing Management Store Design and Visual Merchandising
RESEARCH: Primary and Secondary Market Research Focus Group Design and Facilitation Mystery Shopping and Experience Assessments Competitive Analysis
Proactive Business Development
What will take with you today: A “context” to think about Incentives
What are they?
Why do we need them?
How are they used to recruit businesses?
How are they used to attract redevelopment
Incentives to Recruit Businesses and Attract Redevelopment
What is the biggest pre requisite to successfully creating and using utilizing incentives?
Partners!
Incentives to Recruit Businesses and Attract Redevelopment
Who are good incentive creating Partners? Residents and homeowner/tenant organizations Federal, State and Local government officials, both elected and appointed Banks/small business lenders Civic and cultural groups Local private corporations Economic development organizations Chambers of Commerce Regional planning entities Community development organizations Property owners Realtors Police Utility Providers Historic preservation organizations Transportation and parking authorities Colleges and universities
Incentives to Recruit Businesses and Attract Redevelopment
What is an Incentive?
A thing that motivates or encourages one to do something: "incentive to conserve".
A payment or concession to stimulate greater output or investment: "tax incentives for investing".
Incentives to Recruit Businesses and Attract Redevelopment
Incentives should Incentivize…What does this mean?
Incentives to Recruit Businesses and Attract Redevelopment
Why do we need Incentives?Competitive Advantage and/or to “level the
playing fieldProvide a Catalyst for Development or
RedevelopmentLeverage OpportunityTo make the Opportunity
Incentives to Recruit Businesses and Attract Redevelopment
Here are some examples of Incentives being utilized by communities throughout the U.S
Incentives to Recruit Businesses and Attract Redevelopment :
Community Development Block Grants (CDBG)
Incentives to Recruit Businesses and Attract Redevelopment
Historic Tax Credits
Incentives to Recruit Businesses and Attract Redevelopment
New Market Tax Credits
www.novoco.com
Incentives to Recruit Businesses and Attract Redevelopment
Tax Increment Financing
Incentives to Recruit Businesses and Attract RedevelopmentWhat is a Special Development District?
A Special Development District (SDD) is a governmentally created development district in which required infrastructure is funded by the developer and not the municipality through the use of SDD Bonds.
SDD’s first emerged in high growth states such as California and Florida and are now enabled for use in all but one state.
SDDs are designed as “non-recourse” funding mechanisms for Towns and Counties to work with developers who will bear the cost and responsibility of infrastructure improvements (i.e. water, sewer, parks, roads, etc.) in growth areas and on large projects.
SDDs are designed to work best for new development and in sometimes in combination with Tax Increment Financings (TIF’s).
Incentives to Recruit Businesses and Attract Redevelopment
USDA Funding SourcesTechnical Assistance (Planning and Visioning)Grant Programs
• Community Facilities• Rural Community Development Initiative • Rural Business Opportunity Grants • Loans• Energy Incentives and Programs
http://www.rurdev.usda.gov
Incentives to Recruit Businesses and Attract Redevelopment
Catalytic Investment Funds (or related new federal or state programs)
As part of the 2011 budget, HUD proposes $150 million for the Catalytic Investment Competition Grants program.
Incentives to Recruit Businesses and Attract Redevelopment
Façade Improvement Programs with a co-match (CRA Funded or funding from creative resources like the vacancy ordinance assessment)
Incentives to Recruit Businesses and Attract Redevelopment
Utility Incentives:
Creation of a downtown Power District – pooling consumption for favorable electric utility rates.
Incentives to Recruit Businesses and Attract Redevelopment
Utility Incentives:
Business Incentives Rates/ 13th month “free” etc. for municipalities that provide electric, or
Incentives to Recruit Businesses and Attract Redevelopment
Utility Incentives:
Abating utility deposits
Incentives to Recruit Businesses and Attract Redevelopment
Tax abatement programs to suspend reassessment for a period of time after the improvements are made to the property
Incentives to Recruit Businesses and Attract Redevelopment
Formation of a Business Improvement District
Incentives to Recruit Businesses and Attract Redevelopment
Gap Financing Tools – Aimed at encouraging “upstairs”
occupancy in addition to first floor spaces in downtown buildings.
Such programs offer financial assistance to developers on projects where market rent will not support the redevelopment costs.
Incentives to Recruit Businesses and Attract Redevelopment
Low interest/ No interest loans (Town backed loan guarantees for
necessary and pre approved new businesses)
Incentives to Recruit Businesses and Attract Redevelopment
Community Initiated development (gaining site control of key property and “flipping” to redevelopers that will work in partnership with the downtown)
RFQ and RFP toolsDeveloper Agreements
Incentives to Recruit Businesses and Attract Redevelopment
Upper floor relocation assistance
Incentives to Recruit Businesses and Attract Redevelopment
Extended hours of operation for businesses in the downtown
Incentives to Recruit Businesses and Attract Redevelopment
Enact Signage Ordinances that provide for business success and community aesthetics at the same time
Incentives to Recruit Businesses and Attract Redevelopment
Adoption of a Strategic Merchandising Plan for the downtown (to provide a context for growth, value and targeted businesses
Incentives to Recruit Businesses and Attract Redevelopment
What did developers want the most?
A Single Point of Contact to Assist with the Permitting Process and Answer Questions
about the Due Diligence Process
Incentives to Recruit Businesses and Attract Redevelopment
And…Good Business Retention is Good Business Recruitment
Incentives to Recruit Businesses and Attract RedevelopmentFor Example: SHOP TALK Retention Strategy
Develop retention strategies to include:
Design and deliver up to three group workshops/educational opportunities for retail, restaurants, service, and hospitality sectors
Facilitate the process of one-on-one comprehensive technical assistance visits with approximately 4-5 merchants
Telephone support to selected businesses between on-site visits
Incentives to Recruit Businesses and Attract RedevelopmentFor Example: SHOP TALK Retention Strategy
Develop retention strategies continued:
Telephone support to selected businesses between on-site visits
Supply Director with a comprehensive list of local, regional, and national resources that can be shared with merchants
Provide Ongoing Support As Needed
Incentives to Recruit Businesses and Attract Redevelopment
Questions?
Incentives to Recruit Businesses and Attract Redevelopment
Then we’re good, here?
Incentives to Recruit Businesses and Attract Redevelopment
Can we shake on it?
THANKS!
Feel free to contact us:
Diane Laird , [email protected] Economic Development Office302-672-6834
Rick Ferrell, [email protected]
Retail Market Answers, LLC
917-335-1961
Margie Johnson, [email protected]
Shop Talk
757.491.1411