Brad Segal, Progressive Urban Management Associates Denver, October 7 Economic Development Council of Colorado New Partnerships for Development

Business District Development Framework Organizing for Each Phase of a District’s Growth Cycle… Business District Development Framework Organizing for Each Phase of a District’s Growth Cycle… New Partnerships for Development District LifecycleGeneral Conditions Stagnant Challenged, with high vacancies, underutilized properties, uninviting public realm and poor regional image Growing Up and coming, with a sprinkling of new businesses, pioneering new investments and an image of a district in transition Mature Established, with a strong mix of retail, restaurants and jobs, inviting public realm and strong regional image

Business District Development Framework Business District Development Framework New Partnerships for Development Stagnant Districts Private Sector Champions? Several local leaders motivated to change the district, but high levels of apathy and cynicism among stakeholders Program Priorities Attract new investment & stabilize the environment Create confidence among local stakeholders Combat regional stigma Organizational Options Appointed commission Community development corporation Redevelopment agency Main Street™ program Tools & Resources Tax increment financing Local government support, both money and services Charitable grants Earned income from development

Successful Strategies: Stagnant Districts Brush! ► Main Street™ program formed in 2001 ► Façade improvement grants to 12 properties ► Streetscape enhancements underway ► Program purchased/renovated a building ► Spirit of Brush Award ► A sustainable champion for the district Successful Strategies: Stagnant Districts Brush! ► Main Street™ program formed in 2001 ► Façade improvement grants to 12 properties ► Streetscape enhancements underway ► Program purchased/renovated a building ► Spirit of Brush Award ► A sustainable champion for the district New Partnerships for Development

Community Development Corporation (CDC) Non-profit community organization with public/private orientation…  Oriented to advance real estate and business development  Provides planning and project development services  Facilitator and problem solver for otherwise challenging projects Funding Source: Contributions, grants, fees and earned income Community Development Corporation (CDC) Non-profit community organization with public/private orientation…  Oriented to advance real estate and business development  Provides planning and project development services  Facilitator and problem solver for otherwise challenging projects Funding Source: Contributions, grants, fees and earned income New Partnerships for Development

Successful Strategies: Stagnant Districts El Cajon CDC, El Cajon, CA ► Formed in mid-1990s, also includes BID, Main Street™ program, contract with local redevelopment agency to manage TIF ► Clean & safe, business development, affordable housing and workforce training ► Downtown outperforms city in… Property values (181% vs. 75%) Sales (66% vs. 45%) Creation of 600 new jobs Successful Strategies: Stagnant Districts El Cajon CDC, El Cajon, CA ► Formed in mid-1990s, also includes BID, Main Street™ program, contract with local redevelopment agency to manage TIF ► Clean & safe, business development, affordable housing and workforce training ► Downtown outperforms city in… Property values (181% vs. 75%) Sales (66% vs. 45%) Creation of 600 new jobs New Partnerships for Development

Successful Strategies: Stagnant Districts Denver Civic Ventures ► 501(c)3 CDC formed in 1982 ► Has evolved over time to address variety of civic needs 1986, 2007 Downtown Plans 1980s Multi-bank loan program 1990s Housing development 1990s Project development 2000s Planning 2010 Public Market? Successful Strategies: Stagnant Districts Denver Civic Ventures ► 501(c)3 CDC formed in 1982 ► Has evolved over time to address variety of civic needs 1986, 2007 Downtown Plans 1980s Multi-bank loan program 1990s Housing development 1990s Project development 2000s Planning 2010 Public Market? New Partnerships for Development

Finance Tool: Community Capital Mobilizing Local Capital & Resources…  Variety of ownership models – community-owned corporations, cooperatives, investment fund  Local incentive for small business development, marketing  Provide both equity and debt Funding Sources: Individuals, banks, institutions, foundations Finance Tool: Community Capital Mobilizing Local Capital & Resources…  Variety of ownership models – community-owned corporations, cooperatives, investment fund  Local incentive for small business development, marketing  Provide both equity and debt Funding Sources: Individuals, banks, institutions, foundations New Partnerships for Development

Successful Strategies: Stagnant Districts Evergreen Cooperative, Cleveland, OH ► Creating community-owned businesses to serve local institutions ► Identified $3 billion in outsourcing by local hospital, university ► Cleveland Foundation creating new green businesses to fill gaps ► Examples include commercial laundry, solar energy producer ► Cooperative ownership structure keeps jobs local, ensures long term commitment to local growth ► Businesses intended to be profitable, loan payments seed new firms Successful Strategies: Stagnant Districts Evergreen Cooperative, Cleveland, OH ► Creating community-owned businesses to serve local institutions ► Identified $3 billion in outsourcing by local hospital, university ► Cleveland Foundation creating new green businesses to fill gaps ► Examples include commercial laundry, solar energy producer ► Cooperative ownership structure keeps jobs local, ensures long term commitment to local growth ► Businesses intended to be profitable, loan payments seed new firms New Partnerships for Development

Business District Development Framework Business District Development Framework New Partnerships for Development Growing Districts Private Sector Champions? Core group of vested property and business owners, with energy from new entrepreneurs. Motivated to explore public/private approaches to improve the district. Program Priorities Attract new businesses & market the area to consumers Beautify and improve the public realm Provide meaningful participation for new owners and businesses Convey a new emerging image Organizational Options Membership organization Business improvement district Downtown development authority Foundation or 501(c)3 subsidiary Tools & Resources All of the preceding plus: Property or business assessments Revenue generating promotions and special events Membership dues

Business Improvement Districts (BIDs) Quasi-public special district governed by ratepayers…  Provides funds to manage, market and maintain the downtown environment -- “CAM” fee for downtown  Self-governed, self-imposed, accountable  Need: 1) private sector champions; 2) supportive local government; 3) staff and financial resources; 4) tradition of public/private partnership Business Improvement Districts (BIDs) Quasi-public special district governed by ratepayers…  Provides funds to manage, market and maintain the downtown environment -- “CAM” fee for downtown  Self-governed, self-imposed, accountable  Need: 1) private sector champions; 2) supportive local government; 3) staff and financial resources; 4) tradition of public/private partnership New Partnerships for Development

Business Improvement Districts (BIDs) Key messages during the Great Recession…  Ability to stabilize & manage the environment  Now is the time to strengthen competitive advantages  Unified downtown will make us more influential  Ability to leverage resources, challenge and lead  Accountability  Something we can control in an uncertain and changing economy Business Improvement Districts (BIDs) Key messages during the Great Recession…  Ability to stabilize & manage the environment  Now is the time to strengthen competitive advantages  Unified downtown will make us more influential  Ability to leverage resources, challenge and lead  Accountability  Something we can control in an uncertain and changing economy New Partnerships for Development

Successful Strategies: Growing Districts Havana Corridor BID ► BID formed in 2007 ► 4.5 mills annual budget of $325,000 ► Services include marketing, economic development, special events & establishing a district identity Successful Strategies: Growing Districts Havana Corridor BID ► BID formed in 2007 ► 4.5 mills annual budget of $325,000 ► Services include marketing, economic development, special events & establishing a district identity New Partnerships for Development

Downtown Development Authorities Can often combine advantages of TIF & BIDs…  Differs from state to state  Most allow TIF and a mill levy  Generally must implement a development plan  Governance can be more public-sector connected  Generally does not have power of eminent domain  Now is the time to establish the base year for TIF Downtown Development Authorities Can often combine advantages of TIF & BIDs…  Differs from state to state  Most allow TIF and a mill levy  Generally must implement a development plan  Governance can be more public-sector connected  Generally does not have power of eminent domain  Now is the time to establish the base year for TIF New Partnerships for Development

Finance Tools: TIF Basics of tax increment financing (TIF)…  Uses future increases in property and/or sales tax to finance improvements today  Common to bond with TIF  Tool for “bricks & mortar” – infrastructure & buildings  Now is the time to establish a base year Finance Tools: TIF Basics of tax increment financing (TIF)…  Uses future increases in property and/or sales tax to finance improvements today  Common to bond with TIF  Tool for “bricks & mortar” – infrastructure & buildings  Now is the time to establish a base year New Partnerships for Development

Successful Strategies: Growing Districts Nederland DDA ► Formed in 2005 following market study ► Includes 5 mills plus TIF ► Just completed nearly $1 million in sidewalk reconstruction ► Provides leadership for downtown improvements Successful Strategies: Growing Districts Nederland DDA ► Formed in 2005 following market study ► Includes 5 mills plus TIF ► Just completed nearly $1 million in sidewalk reconstruction ► Provides leadership for downtown improvements New Partnerships for Development

Successful Strategies: Growing Districts Colorado Springs DDA ► Formed in 2007, provides financial incentives to promote development via underwriting/partnering on development and rehab ► Also has BID, 501(c)3 foundation ► Challenge Grant Program: Provides matching funds to property and business owners (private and public) for improvements to facades, landscaping, lighting, signage, etc. Successful Strategies: Growing Districts Colorado Springs DDA ► Formed in 2007, provides financial incentives to promote development via underwriting/partnering on development and rehab ► Also has BID, 501(c)3 foundation ► Challenge Grant Program: Provides matching funds to property and business owners (private and public) for improvements to facades, landscaping, lighting, signage, etc. New Partnerships for Development

Business District Development Framework Business District Development Framework New Partnerships for Development Mature Districts Private Sector Champions? Experienced core group of vested property and business owners with a history of being organized and participating in public/private partnerships. Program Priorities Retain & grow businesses Market the area to consumers Keep organization fresh to keep stakeholders engaged Strengthen a positive image Organizational Options Entrepreneurial holding company Parking districts Events production company Transportation management organization Tools & Resources All of the preceding plus: Parking revenue Local improvement bonds Merchandising the district

Successful Strategies: Mature Districts Cherry Creek North BID ► 16-block retail and restaurant district, 320 independent businesses ► Generates approximately $2.3 million in revenue ► Passed $18.5 million bond issue to streetscape entire district ► BID issued bonds in 2009 (also did $12 million bond issue in 1989) Successful Strategies: Mature Districts Cherry Creek North BID ► 16-block retail and restaurant district, 320 independent businesses ► Generates approximately $2.3 million in revenue ► Passed $18.5 million bond issue to streetscape entire district ► BID issued bonds in 2009 (also did $12 million bond issue in 1989) New Partnerships for Development

Successful Strategies: Mature Districts Downtown Tempe Community, Inc. – Tempe, AZ ► Management, marketing of all public, some private parking in downtown Tempe (8 lots/garages in total) ► Contract with the City – 6% of parking revenues, management fee ► All parking managed by DTC part of “Park-It Program” including First Hour Free, validation program Successful Strategies: Mature Districts Downtown Tempe Community, Inc. – Tempe, AZ ► Management, marketing of all public, some private parking in downtown Tempe (8 lots/garages in total) ► Contract with the City – 6% of parking revenues, management fee ► All parking managed by DTC part of “Park-It Program” including First Hour Free, validation program New Partnerships for Development

Holding Company Structures: Denver, CO New Partnerships for Development DOWNTOWN DENVER EVENTS DENVER CIVIC VENTURES 501(c)(3) DENVER CIVIC VENTURES 501(c)(3) DOWNTOWN DENVER PARTNERSHIP 501(c) (6) DOWNTOWN DENVER PARTNERSHIP 501(c) (6) by contract Vision Communications Administration Festivals & Events DOWNTOWN DENVER, INC. 501(c)(6) DOWNTOWN DENVER, INC. 501(c)(6) Advocacy Marketing Economic Development Transportation Housing Special Projects Transportation (TMO) Maintenance Marketing Mall Vending MEMBERSHIPS $ $ GRANTS, CONTRACTS, SPONSORSHIPS $ $ ASSESSMENTS $ $ BID (BID) BID (BID)

Brad Segal, Progressive Urban Management Associates Economic Development Council of Colorado New Partnerships for Development