Incentives to Recruit Businesses and Attract Redevelopment
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Incentives to Recruit Businesses and Attract Redevelopment National Main Streets Conference, Des Moines, 2011 PowerPoint PPT Presentation


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Incentives to Recruit Businesses and Attract Redevelopment National Main Streets Conference, Des Moines, 2011. Rick Ferrell, Retail Market Answers, LLC Diane Laird, Delaware Economic Development Office, Delaware Main Street. Retail Market Answers, LLC Wilmington, DE.

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Incentives to Recruit Businesses and Attract Redevelopment National Main Streets Conference, Des Moines, 2011

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Retail market answers 2c llc 5crwilmington 2c de

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, LLC

Wilmington, DE


Proactive business development

Proactive Business Development

  • Welcome and Introductions

  • Your participation

  • Goals

    …Please silence cell phones


Who we are

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 Trust

      • Compass Retail

      • EQK Partners

      • The Rouse Company

      • Forest City Ratner Companies

      • Staten Island Ferry Management Company

      • Arbor Realty Trust (NYSE; ARB)

  • Diane Laird

    • State Coordinator

      • Downtown Delaware

      • Delaware +Main Street

      • Small Business Outreach

      • 15 towns participating

    • Previously NCIDQ-certified interior designer, NJ


Who we are1

Who we are…

Margie Johnson

CONSULTING 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 development1

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

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 redevelopment1

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 redevelopment2

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 redevelopment3

Incentives to Recruit Businesses and Attract Redevelopment

Incentives should Incentivize…What does this mean?


Incentives to recruit businesses and attract redevelopment4

Incentives to Recruit Businesses and Attract Redevelopment

Why do we need Incentives?

  • Competitive Advantage and/or to “level the playing field

  • Provide a Catalyst for Development or Redevelopment

  • Leverage Opportunity

  • To make the Opportunity


Incentives to recruit businesses and attract redevelopment5

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 redevelopment6

Incentives to Recruit Businesses and Attract Redevelopment :

Community Development Block Grants (CDBG)


Incentives to recruit businesses and attract redevelopment7

Incentives to Recruit Businesses and Attract Redevelopment

Historic Tax Credits


Incentives to recruit businesses and attract redevelopment8

Incentives to Recruit Businesses and Attract Redevelopment

New Market Tax Credits

www.novoco.com


Incentives to recruit businesses and attract redevelopment9

Incentives to Recruit Businesses and Attract Redevelopment

Tax Increment Financing


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Incentives to Recruit Businesses and Attract Redevelopment

What 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 redevelopment11

Incentives to Recruit Businesses and Attract Redevelopment

USDA Funding Sources

  • Technical 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 redevelopment12

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 redevelopment13

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 redevelopment14

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 redevelopment15

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 redevelopment16

Incentives to Recruit Businesses and Attract Redevelopment

Utility Incentives:

Abating utility deposits


Incentives to recruit businesses and attract redevelopment17

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 redevelopment18

Incentives to Recruit Businesses and Attract Redevelopment

Formation of a Business Improvement District


Incentives to recruit businesses and attract redevelopment19

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 redevelopment20

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 redevelopment21

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 tools

    • Developer Agreements


Incentives to recruit businesses and attract redevelopment22

Incentives to Recruit Businesses and Attract Redevelopment

Upper floor relocation assistance


Incentives to recruit businesses and attract redevelopment23

Incentives to Recruit Businesses and Attract Redevelopment

Extended hours of operation for businesses in the downtown


Incentives to recruit businesses and attract redevelopment24

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 redevelopment25

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 redevelopment26

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 redevelopment27

Incentives to Recruit Businesses and Attract Redevelopment

And…Good Business Retention is Good Business Recruitment


Incentives to recruit businesses and attract redevelopment28

Incentives to Recruit Businesses and Attract Redevelopment

For 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 redevelopment29

Incentives to Recruit Businesses and Attract Redevelopment

For 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 redevelopment30

Incentives to Recruit Businesses and Attract Redevelopment

Questions?


Incentives to recruit businesses and attract redevelopment31

Incentives to Recruit Businesses and Attract Redevelopment

Then we’re good, here?


Incentives to recruit businesses and attract redevelopment32

Incentives to Recruit Businesses and Attract Redevelopment

Can we shake on it?


Thanks

THANKS!

Feel free to contact us:

Diane Laird ,[email protected]

Delaware Economic Development Office

302-672-6834

Rick Ferrell, [email protected]

Retail Market Answers, LLC

917-335-1961

Margie Johnson, [email protected]

Shop Talk

757.491.1411


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