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

Proactive Business Development Welcome and Introductions Your participation Goals …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 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 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 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 field Provide a Catalyst for Development or Redevelopment Leverage Opportunity To 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

Incentives to Recruit Businesses and Attract Redevelopment Tax Increment Financing

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 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

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/ 13 th 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 tools  Developer 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 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 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 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, Delaware Economic Development Office Rick Ferrell, Retail Market Answers, LLC Margie Johnson, Shop Talk