Tools to maintain business diversity

1. Tools to maintain business diversity

2. For consideration this evening, • DAVIS SQUARE TODAY • FORMULA RETAIL REGULATION • FREE MARKET TOOLS

3. Keep in mind…our goals • Educate and Empower • Protect and enhance the culture and character of Davis Sq. • Create proactive collaboration between residents, city and developers

5. Davis Square TodayEconomic Development • SomerVision “Support a business-friendly environment to attract and retain a diverse mix of businesses that can start here, grow here and stay here.” • Existing Zoning: CBD bordered by Residential A, B, C, and Neighborhood Business • Somerville by Design Code

6. Davis Square Today - Zoning Districts

7. CBD Allows: • By-Right • < 10,000 sq. ft. Health Club, movie theater • < 5,000 sq. ft. Office, salon, dry cleaning, banks (no drive-through), printing/copy, convenience store, grocery/food, hardware store, restaurants (not fast food). • Special Permit • 5,000 – 9,999 sq. ft. = SP or SPD • >10,000 sq. ft. = SPSR • 2-6 month process

8. Davis Square TodayExisting Independent Supports • DARBI • Somerville Local First • Small Business Loans • Somerville4Business – Capital Fund Programs

9. What is a Formula Business? • A store or other business that requires standardized: • services • methods of operation • décor • uniforms • architecture • other features • Essentially, a business that is virtually identical to the same business in another geographic location

10. Formula Business Regulation • A zoning ordinance or regulation that does any one or more of the following: • Outright Ban • Defines maximum percentage of like businesses • Defines maximum number of like businesses • Limits only formula restaurants • Limits only retail stores • Limits only banks, business services, pharmacies • Requires conditional use application • Requires conditional use application above X square footage

11. A Look at Formula Retail in San Francisco, CA • “To protect San Francisco’s vibrant small business sector and create a supportive environment for new small business innovations” • An establishment that shares common features, such as a standardized array of merchandise, trademark, architecture, and décor, with at least 11 other establishments in the United States. The term “retail use” includes both stores and restaurants. • Does not include professional or medical services, salons or gyms

12. A Look at Formula Retail in San Francisco, CA • Application • Planning Board Review and Consideration: • number of other formula businesses • other similar goods and services available • Compatibility with character • Retail vacancy rates • Services available in other areas of the city • Neighborhood Notification and Public Input

13. SF Formula Retail Zones

14. Bristol RI- Successful • Ban of formula retail in spaces > 2,500 sf or > 65 feet of street frontage in historic downtown center • Smaller stores may apply for conditional use, prove they won’t detract from historic character and may be restricted from using corporate logos

15. Newburyport - Defeated • Civic non-profit submitted 4 page proposal to City Council for Formula Retail Ordinance • Multiple news articles appeared against FRO (2007) • No ordinance on the books today

16. Davis Square Today22 Percent Formula Retail TedeschiFood Shops CVS/Pharmacy Boston Sports Club Flatread Company / Sacco Bright Horizons Subway Wing Works Dominos Citizens Bank Goodwill Store Buffalo Exchange Anna's Taqueria McDonalds Dunkin Donuts Family Dollar Eastern Bank Bank of America ATM Starbucks Plan P Express Center Pinkberry Delaria Salon Chipotle Grill H&R Block Rite Aid Rockland Trust Sovereign Bank ATM Sovereign Bank Rockland Trust (vacant) Bank of America UPS Store Middlesex Federal ATM Middlesex Federal Savings Citizens Bank KinderCare Au Bon Pain Remax Heritage Green Harvard Vanguard Entry Harvard Vanguard Optical Harvard Vanguard Dental Comcast Orange Leaf

17. Davis Square Today17 Percent Formula Retail TedeschiFood Shops CVS/Pharmacy Boston Sports Club Bright Horizons Subway Wing Works Dominos Citizens Bank McDonalds Dunkin Donuts Family Dollar Eastern Bank Bank of America ATM Starbucks Pinkberry Chipotle Grill H&R Block Rite Aid Rockland Trust Sovereign Bank ATM Sovereign Bank Rockland Trust (vacant) Bank of America UPS Store Middlesex Federal ATM Middlesex Federal Savings Citizens Bank KinderCare Au Bon Pain Remax Heritage Green Comcast Orange Leaf

18. Free Market Business Improvement District • Marketing for the entire square, supports large and small businesses • Revitalization and management programs • Maintenance and beautification • Self-assessed, fee by benefit and/or city run

19. Free Market Require Economic Impact Review • Traffic • Square Character • Jobs • City services • Tax Revenue • Iwerks Outcome Tracker

20. Free MarketSmall Business Supports • Tax incentives for businesses with less than 20 employees • Tax credit for property owners that lease to small business • Mandate living wage and other worker protections

21. Applications to Davis Square Some considerations: • Does a business district need anchor businesses to draw traffic for smaller independents? • How have other communities fared using tools like these? • What other methods are out there? • What best serves the needs of an individual community?