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Transcript of Brad Segal & Rena Leddy, Progressive Urban Management Associates Kraig Kojian, Downtown Long Beach...
Brad Segal & Rena Leddy, Progressive Urban Management AssociatesKraig Kojian, Downtown Long Beach Associates
California Downtown Association Annual Conference 2012
Beyond Redevelopment: New Tools & Toolboxes for California Downtowns
Trends Benefitting Downtowns…Updated Global Trend Analysis…
Trends Benefitting Downtowns…Updated Global Trend Analysis…
New Tools & Toolboxes for California Downtowns
Global Trends Conclusions
Overall, trends favorable for vibrant downtowns? America growing, younger &
older, more diverse Increasingly connected &
competitive world Resource-intensive lifestyles increasingly expensive and not sustainable Innovation and investment will be city-driven
Global Trends Conclusions
Overall, trends favorable for vibrant downtowns? America growing, younger &
older, more diverse Increasingly connected &
competitive world Resource-intensive lifestyles increasingly expensive and not sustainable Innovation and investment will be city-driven
New Tools & Toolboxes for California Downtowns
Downtown Development Framework
Organizing for Each Phase of a District’s Growth Cycle…
Downtown Development Framework
Organizing for Each Phase of a District’s Growth Cycle…
New Tools & Toolboxes for California Downtowns
District Lifecycle General 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
Downtown Development Framework
Downtown Development Framework
New Tools & Toolboxes for California Downtowns
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• Local TIF through ordinance• Main Street™ program
Tools & Resources
• Tax increment financing• Local government support, both money and services• Charitable grants• Earned income from 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 Tools & Toolboxes for California Downtowns
Successful Strategies: CDCs
Cincinnati Center City Development Corp 501(c)3 CDC formed in 2003 Manages equity funds capitalized by corporations New Market Tax Credit manager $200M in total investment Focus on downtown & two adjacent neighborhoods
Successful Strategies: CDCs
Cincinnati Center City Development Corp 501(c)3 CDC formed in 2003 Manages equity funds capitalized by corporations New Market Tax Credit manager $200M in total investment Focus on downtown & two adjacent neighborhoods
New Tools & Toolboxes for California Downtowns
Successful Strategies: CDCs
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 2011 Public Market?
Successful Strategies: CDCs
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 2011 Public Market?
New Tools & Toolboxes for California Downtowns
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 Tools & Toolboxes for California Downtowns
Successful Strategies: Community Capital
The Mercantile, Powell WY► Community-owned, for-profit store► $500 shares sold to 800 residents► Retains spending and local jobs► Help revitalize downtown► Customer service & special orders
Successful Strategies: Community Capital
The Mercantile, Powell WY► Community-owned, for-profit store► $500 shares sold to 800 residents► Retains spending and local jobs► Help revitalize downtown► Customer service & special orders
New Tools & Toolboxes for California Downtowns
Successful Strategies: Community Capital
New Haven Grocery Co-op Community owned business; developer sponsored 1200+ members in first year Highest first year of sales of any food
Co-op in the US ($10m) First urban grocery store financed with a
USDA loan guaranty Largest private sector job creation in New Haven in 2011 Catalyst for economic development, expansion of existing business and leasing
vacant storefronts
Successful Strategies: Community Capital
New Haven Grocery Co-op Community owned business; developer sponsored 1200+ members in first year Highest first year of sales of any food
Co-op in the US ($10m) First urban grocery store financed with a
USDA loan guaranty Largest private sector job creation in New Haven in 2011 Catalyst for economic development, expansion of existing business and leasing
vacant storefronts
New Tools & Toolboxes for California Downtowns
Downtown Development Framework
Downtown Development Framework
New Tools & Toolboxes for California Downtowns
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 (PBIDs/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 (PBIDs/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 partnershipNew Tools & Toolboxes for California Downtowns
Business Improvement Districts (PBIDs/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 (PBIDs/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 Tools & Toolboxes for California Downtowns
Successful Strategies: PBIDs/BIDs
Bayside District - Santa Monica, CA 3rd Street Promenade, successful downtown New PBID raises $3.5 million Services include clean, safe
and marketing Created following strategic
planning process that clarified public/private roles, overcame lingering lack of trust
Successful Strategies: PBIDs/BIDs
Bayside District - Santa Monica, CA 3rd Street Promenade, successful downtown New PBID raises $3.5 million Services include clean, safe
and marketing Created following strategic
planning process that clarified public/private roles, overcame lingering lack of trust
New Tools & Toolboxes for California Downtowns
Successful Strategies: PBIDs/BIDs
Figueroa Corridor – Los Angeles• Formed in 1998 by private and non-profit property owners such as
USC, Exposition Park, Orthopedic Hospital • Created because of perceived heavy crime and businesses and
institutions were experiencing significant declines in business and considering leaving the corridor.
• Non-profit and public sector pay almost half of the assessments• Clean, Safe and Marketing, annual budget is $1,085,000• More than $1.5 billion of investment poured into the district since
Successful Strategies: PBIDs/BIDs
Figueroa Corridor – Los Angeles• Formed in 1998 by private and non-profit property owners such as
USC, Exposition Park, Orthopedic Hospital • Created because of perceived heavy crime and businesses and
institutions were experiencing significant declines in business and considering leaving the corridor.
• Non-profit and public sector pay almost half of the assessments• Clean, Safe and Marketing, annual budget is $1,085,000• More than $1.5 billion of investment poured into the district since
New Tools & Toolboxes for California Downtowns
Downtown Development Authorities
Can often combine advantages of TIF & PBIDs/BIDs…
Colorado and Michigan models are instructive for California Most allow TIF and an assessment TIF often limited to local sales and property tax, negotiated agreements
with other taxing jurisdictions Generally must implement a downtown development plan, one per
community Does not have power of eminent domain
Downtown Development Authorities
Can often combine advantages of TIF & PBIDs/BIDs…
Colorado and Michigan models are instructive for California Most allow TIF and an assessment TIF often limited to local sales and property tax, negotiated agreements
with other taxing jurisdictions Generally must implement a downtown development plan, one per
community Does not have power of eminent domain
New Tools & Toolboxes for California Downtowns
Downtown Development Framework
Downtown Development Framework
New Tools & Toolboxes for California Downtowns
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: Bonding
Cherry Creek North BID, Denver 16-block retail and restaurant district, 320 independent businesses Generates approximately $3 million in annual revenue Passed $18.5 million bond issue to streetscape entire district BID issued bonds in 2009
Successful Strategies: Bonding
Cherry Creek North BID, Denver 16-block retail and restaurant district, 320 independent businesses Generates approximately $3 million in annual revenue Passed $18.5 million bond issue to streetscape entire district BID issued bonds in 2009
New Tools & Toolboxes for California Downtowns
Successful Strategies: Parking 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: Parking 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 Tools & Toolboxes for California Downtowns
Holding Company StructuresHolding Company Structures
New Tools & Toolboxes for California Downtowns
Holding Company StructuresHolding Company Structures
New Tools & Toolboxes for California Downtowns
Holding Company StructuresHolding Company Structures
New Tools & Toolboxes for California Downtowns
Brad Segal & Rena Leddy, Progressive Urban Management AssociatesKraig Kojian, Downtown Long Beach Associates
California Downtown Association Annual Conference 2012
Beyond Redevelopment: New Tools & Toolboxes for California Downtowns