Downtown Revitalization:
Defining an Economic Development
Process for Your Downtown
Delaware League of
Local Governments
October 27, 2006
Rick Ferrell, Principal, Retail Market Answers, LLC
Diane Laird, Delaware Main Street, DEDO
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Today’s topic is big!

What would you like to hear more
about?

Q & A and your interaction
Defining an Economic
Development Process for Your
Downtown
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What does revitalization start with?
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Are there certain plans, projects, or
attitudes that are “keys” to success?
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When your town is “done” - what
specifically do you see?
Defining an Economic
Development Process for Your
Downtown
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Physical environment
– Streetscape, facades, banners
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Local and regional assets
– Natural, historical, political
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Preserved sense of place
Defining an Economic
Development Process for Your
Downtown
What does a strong business district
look like?
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Low vacancy
Open 12-15 hours a day
Foot traffic
Healthy mix of businesses
Confident, successful business owners
Amenities that support the business offerings
Businesses want to locate there
Defining an Economic
Development Process for Your
Downtown
What does a strong business district
look like?
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Local jobs
Cooperation of local government
Tourism
Strong merchant communications
“good bones”
Historic components
Safe and secure
Defining an Economic
Residences
Development Process for Your
Downtown
What needs to come together?
Defining an Economic
Development Process for Your
Downtown
Using private sector principles
Competitive advantages and disadvantages:
public vs. private
Defining an Economic
Development Process for Your
Downtown
A community CAN exert influence…
IF there is a strong desire to do so,
AND
if that desire is backed by agreement
and a strong plan of action.
Defining an Economic
Development Process for Your
Downtown
Today:
What and Why
Future:
How and Who
Defining an Economic
Development Process for Your
Downtown
The four-part ED Process:
Assess
Agree
Plan
Act
Defining an Economic
Development Process for Your
Downtown
You can assess first, and then agree
or
you can agree first, and then assess
or
you can agree and assess concurrently
but…
Defining an Economic
Development Process for Your
Downtown
…you cannot develop effective
strategies without both
assessing the current situation
AND
agreeing on the desired future.
Defining an Economic
Development Process for Your
Downtown
Step 1:
Assess
CBD review
Building & business inventory
Market analysis
Define trade area
Defining an Economic
Development Process for Your
Downtown
Assess
Commercial Business District Review –
Downtown Tour

Assess the conditions that advance or hinder
commercial activity.
 Drive
it – The windshield tour
 Walk it – The storefront tour
 Visit local stores
 Visit local restaurants
 Visit local stakeholder offices
 Encounters with other shoppers
Defining an Economic
Development Process for Your
Downtown
Assess
Drive it – The windshield tour
Defining an Economic
Development Process for Your
Downtown
Assess
Storefront Tour
Defining an Economic
Development Process for Your
Downtown
Assess
Visit local stores
Defining an Economic
Development Process for Your
Downtown
Assess
Visit local restaurants
Defining an Economic
Development Process for Your
Downtown
Assess
Visit local stakeholder offices
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Chamber of Commerce
City Hall
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Economic Development Office
Police Station
Licensing and Inspections
Fire Hall
Real Estate Brokers
Defining an Economic
Development Process for Your
Downtown
Assess
Encounters With Other Shoppers
Defining an Economic
Development Process for Your
Downtown
Assess
Why assess the downtown?
A “snapshot”
captures a
moment in time
to evaluate the
downtown.
Defining an Economic
Development Process for Your
Downtown
Assess
Building and Business Inventory
Name of business and building owners
 Contact information
 Address
 Category of business
 Lease term (rent if available) or own
 Relevant info (strong sales, at risk, wants to sell etc.)
 Zoning - not necessary if all the same
 Size of space – Gross Leasable Area (GLA)
Defining an Economic
 Number of floors
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Development Process for Your
Downtown
Assess
Building and Business Inventory
 Multiple
occupants of buildings
 Scope of downtown goods and services
 Way to measure progress and articulating
need
 Monitoring vacancy
 GLA: match the inventory “on hand” with
business prospect’s
Defining an Economic
Development Process for Your
Downtown
Assess
Building and Business Inventory
Defining an Economic
Development Process for Your
Downtown
Assess
Market Analysis
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Has your town undertaken a market
analysis?
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Are you currently working with it?
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What makes a market analysis effective?
Defining an Economic
Development Process for Your
Downtown
Assess
Market Analysis
Types of market data research:
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Primary (original) research:
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Surveys (mail, phone, customer intercept)
Focus groups
Syndicated data – census derived, secondary :
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ESRI, Claritas:
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Demographics
Supply/Demand
Consumer Spending
Defining an Economic
Development Process for Your
Downtown
Assess
Market Analysis
Data:
“Analysis”:
“ 10% of shoe stores are located locally; 30 %
are elsewhere in the county; and 10% are
outside of the county.”
Defining an Economic
Development Process for Your
Downtown
Assess
Market Analysis
An effective market analysis will interpret
and blend the findings of the primary and
secondary research and provide
substantive analysis of the growth
opportunities in your market.
Defining an Economic
Development Process for Your
Downtown
Assess
Market Analysis
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Why specifically do we need the analysis?
What are we trying to accomplish with it?
For instance…
 Are there specific blocks we want to
address?
 Is there a key building or location that we
are trying to fix?
Defining an Economic
Development Process for Your
Downtown
Assess
Market Analysis
Market analysis is to
sustainable/appropriate economic
development as an x-ray is to a dentist.
Market Analysis is not the end…
it is a means to an end!
Defining an Economic
Development Process for Your
Downtown
Assess
Market Analysis
Why do you undertake it?
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strategic planning
grants and funding
test your community vision and preferences
test sustainable businesses and act as a
recruitment tool to answer questions from
property owners and prospective businesses
Defining an Economic
Development Process for Your
Downtown
Assess
Trade Area
What is it? Where the majority of shoppers
are coming from.
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The way to identify the trade area is to
consider:
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Shopper intercept surveys, current customer
traffic/travel patterns, discussions with local
merchants, discussions with local government
officials.
Defining an Economic
Development Process for Your
Downtown
Assess
Trade Area
Defining an Economic
Development Process for Your
Downtown
Assess
Trade Area
Why define the trade area?
It represents the area with the greatest
potential to grow the current customer base.
Defining an Economic
Development Process for Your
Downtown
Assess
Trade Area
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New business prospecting
Allows a greater understanding of customer
base…where they are and where they are not
Expresses drive times
Establishes baseline data
Targeted customer marketing
Provides a context for other syndicated data
and analysis
Defining an Economic
Development Process for Your
Downtown
The four-part ED Process:
Assess
Agree
Defining an Economic
Development Process for Your
Downtown
Step 2:
Agree
Building consensus is a requirement of
community-driven growth.
The alternative is a
developer-driven approach.
Defining an Economic
Development Process for Your
Downtown
Agree
Building consensus
Who better should define the future of the
community than those who already have
an investment in the community?
Ownership of the planning should be by
stakeholders.
Defining an Economic
Development Process for Your
Downtown
Agree
Building consensus
Ways to gain public opinion:
 Surveys
 Focus Groups – in depth
 Intercept surveys
 Stakeholder interviews
Defining an Economic
Development Process for Your
Downtown
Agree
Building consensus: Stakeholders
Who takes part in stakeholder interviews?
Residents
 Business owners
 Civic leaders
 Property Owners
 Public Officials
 Realtors
 Developers
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Defining an Economic
Development Process for Your
Downtown
Agree
Building consensus: Stakeholders
What needs to be addressed in a stakeholder
interview?
• Overview (relationships of stakeholders
downtown)
• Vision
• SWOT
• Past and current experiences
• Resources
Defining an Economic
Development Process for Your
Downtown
Agree
Building consensus: Property Owners
Property owners are the “gatekeepers.”
The property owner decides who occupies
their space.
Defining an Economic
Development Process for Your
Downtown
Agree
Building consensus: Property Owners
The lease is key to establishing a business
culture in the commercial district:
– Hours
of operation
– Use and Occupancy controls
– Visual standards
– Operating Standards and Practices
– Remodel provisions
Defining an Economic
Development Process for Your
Downtown
The four-part ED Process:
Assess
Agree
Plan
Defining an Economic
Development Process for Your
Downtown
Step 3:
Plan
A strategic merchandising plan is
developed to affect and manage
the retention and recruitment
aspects of the downtown
business district.
Defining an Economic
Development Process for Your
Downtown
Plan
Strategic Merchandising Plan
What is it?
It is the vision for the downtown, created by
the stakeholders, and tempered by reality.
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A planning tool
Done on a space-by-space basis
A working document
A marketing tool
A reality check
Defining an Economic
Development Process for Your
Downtown
Plan
Strategic Merchandising Plan
A strategic merchandising plan is the “lineup” of businesses that, if you could have
them, would represent the highest and
best use of each building and parcel in
your commercial business district.
Defining an Economic
Development Process for Your
Downtown
Plan
Strategic Merchandising Plan
Defining an Economic
Development Process for Your
Downtown
Plan
Strategic Merchandising Plan
Why do you need one?
The value of a strategic merchandising plan is
proactive planning. The alternative is “you
get what you get.”
Growth by CHOICE not by CHANCE.
Defining an Economic
Development Process for Your
Downtown
Plan
Business Retention and Expansion
Four categories of merchants at risk:
Those under-utilizing business opportunities
 Those with successorship issues
 Those at risk of failure
 Those who need relocation
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Defining an Economic
Development Process for Your
Downtown
Plan
Business Recruitment
Filling space vs. strategic planning
Value is enhanced…
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when growth is both sustainable and preferred
with critical massing of available space
when merchandising opportunities are leveraged
by business synergy
Defining an Economic
Development Process for Your
Downtown
Plan
Site Selection
Where do things go?
Defining an Economic
Development Process for Your
Downtown
Plan
Site Selection
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Is the building appropriate for the
desired use?
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Size of space (GLA)
Size of frontage
Co-tenancy
Local/regional/national
Categories (home improvements, apparel/accessories)
Tenant improvement allowance (TIA)
Combining space
Back-of-the house considerations (shipping/receiving)
Defining an Economic
Development Process for Your
Downtown
Plan
Resource Planning
Human Resources
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Private, volunteer-driven revitalization programs
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Staff-driven programs
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Main Street or non-preservation-based
Town or city offices
Individuals, Institutions and Private Partners
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Universities, volunteers, National Trust, SBA, private
partners
Defining an Economic
Development Process for Your
Downtown
Plan
Resource Planning
Capital Resources
Understand specific funding requirements
• Identify potential funding sources (Federal, State,
local)
• Identify incentives (local creative individualized
incentives, energy, etc.)
• Leveraging private re-investment
•
Defining an Economic
Development Process for Your
Downtown
The four-part ED Process:
Assess
Agree
Plan
Act
Defining an Economic
Development Process for Your
Downtown
Step 4:
Act
The conclusion:
Act on the first three steps.
Defining an Economic
Development Process for Your
Downtown
Act
Acting on the plan
There must be a
team in place to implement the plan.
Without a team, the plan is limited.
Defining an Economic
Development Process for Your
Downtown
Act
Acting on the plan
Along with the team, there must be
financial resources in place to
implement the plan.
Without financial resources,
the plan is limited.
Defining an Economic
Development Process for Your
Downtown
Act
Acting on the plan
Options to consider when the plan is
limited:
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Divide the plan into phases
Reduce the scope of work
Continue to research and build resources
Keep data base current
Defining an Economic
Development Process for Your
Downtown
Act
Acting on the plan
The process of revitalization is fluid
because the market is fluid.
As a result this work requires time,
patience, clear direction, continuity and
great communication.
Defining an Economic
Development Process for Your
Downtown
Act
Acting on the plan
To successfully implement and manage
the plan:
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Expect resistance and rejection
There is value in rejection
Meet regularly with relevant stakeholders
Re-assess the plan as you gain new
information and perspective
Defining an Economic
Development Process for Your
Downtown
The conclusion…really!
Consistently watch the marketplace and
the physical aspects of the downtown
by being on the street regularly.
Communicate and develop the
relationships with property owners
you will need to succeed.
Defining an Economic
Development Process for Your
Downtown
The conclusion…really!
Keep in mind the dynamic, ever-changing
nature of the downtown marketplace and
be willing to carefully adapt and implement
plans accordingly.
A comprehensive effort will take time.
Change happens one property, one
business, one effective change or small
victory at a time.
Defining an Economic
Development Process for Your
Downtown
A strong downtown business district
is the result of a planned effort!
Assess – Agree – Plan – Act
Defining an Economic
Development Process for Your
Downtown
Future Training Possibilities:
How and Who?
What would you like to hear more about?
Please take a moment to fill out the survey.
Questions?
Diane Laird, State Coordinator, Delaware Main Street Diane.Laird@state.de.us
Rick Ferrell, Principal Retail Market Answers, LLC rickferrell@hotmail.com
Defining an Economic
Development Process for Your
Downtown