7th Annual Tennessee Basic Economic Development Course

Real Estate Developmentand Reuse – Part I:

DOWNTOWNDOWNTOWNREVITALIZATIONREVITALIZATION

Presented By: Todd Morgan

People ages 65 and older will be the fastest

growing group in the U.S. through 2050.

They are downsizing, want to walk to places,

experience arts and culture and use public

transportation.

Urban Land InstituteHousing in America – The Baby Boomers turn 65 October 2012

People ages 17 – 34, the “Millennials”, plan to pick

where they live first and choose their jobs second.

They are primarily renters, want cool, walkable

communities and enjoy amenities like Wi-Fi in common

areas, dog parks and outdoor “living rooms”.

Urban Land InstituteHousing in America – The Baby Boomers turn 65 October 2012

Cities need to attract talented, creative workers by

creating places where these people want to live.

Quality of place…dynamic experiences…REAL

buildings, REAL people, REAL history

Richard FloridaThe Rise of the Creative Class

The … most important factors that create emotional bonds

between people and their community [are] not jobs and the

economy, but rather “physical beauty, opportunities for

socializing and a city’s openness to all people.” …

communities with the highest levels of attachment also had

the highest rates of gross domestic product growth and the

strongest economies.

When it comes to 21st century economic

development, a key concept is community

differentiation. If you can’t differentiate your

community from any other, you have no

competitive advantage.

Edward T. McMahonUrbanLand 4.4.12

The unique characteristics of place may

be the only truly defensible source of

competitive advantage for regions.

Joe CortrightCity Vitals

What do you see in your community?

DDOWNTOWNOWNTOWN

Downtown - Main StreetDowntown - Main StreetThe heart of commercial, civic and social lifeThe heart of commercial, civic and social life

The Rise of Suburban AmericaThe Rise of Suburban AmericaPost World War II Economic ExpansionPost World War II Economic Expansion

Levittown, NY

Downtowns Tried to CompeteDowntowns Tried to CompeteThrough modernization and tear downsThrough modernization and tear downs

www.PreservationNation.orgwww.PreservationNation.org

National Trust for Historic PreservationNational Trust for Historic PreservationMain Street Pilot Project:Main Street Pilot Project:

Galesburg, Ill.; Madison, IN; Hot Springs, SD Galesburg, Ill.; Madison, IN; Hot Springs, SD

Identified the problems Identified the problems

Developed strategies to reverse the Developed strategies to reverse the movement away from downtowns; movement away from downtowns; interrupt the cycle of disinvestment interrupt the cycle of disinvestment

Goal to restore downtown as the Goal to restore downtown as the “heart and soul” of the community“heart and soul” of the community

www.MainStreet.orgwww.MainStreet.org

19771977

An organized and common-sense way to address the An organized and common-sense way to address the variety of issues that face traditional business districts.variety of issues that face traditional business districts.

Main Street ProgramMain Street Program™

Economic development within the context of historic Economic development within the context of historic preservation developing new ways appropriate to the preservation developing new ways appropriate to the current marketplace.current marketplace.

DesignDesign

Four Point ApproachFour Point Approach™

EconomicEconomicRestructuringRestructuring

OrganizationOrganization PromotionPromotion

DesignDesign

Four Point ApproachFour Point Approach™

SignageSignageStreetscapeStreetscape

Character PreservationCharacter Preservation

Building InventoryBuilding Inventory

CleanlinessCleanlinessLandscapingLandscaping

Way-findingWay-finding

Storefronts/DisplaysStorefronts/Displays

Four Point ApproachFour Point Approach™

EconomicEconomicRestructuringRestructuring

Business InventoryBusiness Inventory

Market AnalysisMarket Analysis

IncentivesIncentives

FinancingFinancing

Small BusinessSmall Business

RetentionRetention

RecruitmentRecruitment

StabilizationStabilization

Four Point ApproachFour Point Approach™

PromotionPromotion

Image MarketingImage Marketing

Special EventsSpecial Events

Retail PromotionsRetail Promotions

PublicationsPublications

Media RelationsMedia Relations

AwardsAwards

Ribbon-CuttingsRibbon-Cuttings

WebsiteWebsite

Four Point ApproachFour Point Approach™

OrganizationOrganization

ManagementManagement

VolunteersVolunteers

PartnershipsPartnerships

StatisticsStatistics

MembershipMembership

FundingFunding

GrantsGrants

StrategiesStrategies

Four Point ApproachFour Point Approach™Leads to Success!

Design The commercial district is in top physical shape – attractive, clean, safe

Economic Diverse business climate with mix of Restructuring uses; market is well understood

Promotion The district's unique characteristics and assets are utilized – good image,

high foot-traffic, range of activities

Organization Community is in consensus and working together toward a common goal; broad- based support for downtown

The Eight PrinciplesThe Eight PrinciplesThat set the Main Street Approach apart:That set the Main Street Approach apart:

Comprehensive – No single focus

Incremental – 1,000 small steps

Self-help – Local leadership

Partnership – Public/Private

Identifying and Capitalizing on Existing Assets

Quality – Not quantity

Change – In attitudes and practice

Implementation – Visible results

Sense of PlaceSense of Place

PreservationPreservation

RestorationRestoration

WalkabilityWalkability

Unique ResidentialUnique Residential

EntertainmentEntertainment

CommunityCommunity

Gathering SpotsGathering Spots

Event VenuesEvent Venues

EntrepreneursEntrepreneurs

RetailRetail

Farmer’s MarketsFarmer’s Markets

Creative EconomyCreative Economy

2012 Reinvestment 2012 Reinvestment

Public/Private Investment Downtown Public/Private Investment Downtown $55.7 Billion$55.7 Billion

Net Gain in BusinessesNet Gain in Businesses 109,664109,664

Net Gain in JobsNet Gain in Jobs 473,439473,439

Building RehabilitationsBuilding Rehabilitations 236,201236,201

Reinvestment Ratio: $18 : $1Reinvestment Ratio: $18 : $1

Levels of Main StreetLevels of Main Street

National National The National Main Street Center, a program of The National Main Street Center, a program of the National Trust for Historic Preservation, the National Trust for Historic Preservation, sets standards for national accreditation and sets standards for national accreditation and serves as a resource for over 2,200 programs.serves as a resource for over 2,200 programs.

StateState State coordinating partners monitor local State coordinating partners monitor local programs, provide technical assistance and programs, provide technical assistance and training, and encourage downtown training, and encourage downtown revitalization strategies.revitalization strategies.

LocalLocal Has an organization devoted to downtown Has an organization devoted to downtown management with staff and meets national management with staff and meets national accreditation accreditation standards annually.standards annually.

Local Main Street ProgramsLocal Main Street Programs

Broad-based community support Relevant mission and vision statements Comprehensive work plan Historic preservation ethic Active board and committees Operating budget Professional staff Program of training for staff/volunteers Report key statistics Member of National Main Street Center

Downtown Revitalization in TN Downtown Revitalization in TN

Bristol JacksonCleveland Leiper’s ForkCollierville KingsportColumbia LawrenceburgCookeville McMinnvilleDandridge MorristownDayton MurfreesboroDyersburg RogersvilleFayetteville TiptonvilleFranklin SavannahGallatin Union CityGreeneville Ripley

2012 Tennessee Main Streets2012 Tennessee Main Streets

2012 Reinvestment Statistics2012 Reinvestment Statistics

Net new jobs - 604Net new businesses - 107Building Rehabilitation projects - 217 Public Improvement projects - 304New Construction projects - 25Housing units created - 273

Number of volunteer hours - 117,253

Private investment in downtown - $ 62,081,591 Public investment in downtown - $ 20,661,307

Total public/private - $ 82,742,898

Tennessee DowntownsTennessee Downtowns▪ “Main Street on training wheels”

▪ A competitive process

▪ Requires a steering committee

▪ Project focus

▪ 18 month learning/training program

▪ Round 1 – 10 communities

▪ Round 2 – 12 communities

▪ Round 3 – 6 communities

Why Downtown Is Important:Why Downtown Is Important:▪ A symbol of community economic health

▪ Reflects local quality of life

▪ A symbol of community pride and history

▪ Supports local independent businesses

▪ Serves as a good small business incubator

▪ Can be a tourist destination

▪ Important to business/industrial recruitment

▪ Rehabilitation stimulates the local economy

Why organize a downtown Why organize a downtown revitalization effort?revitalization effort?

To take control of the changes that are going to happen and guide them in order to:

▪ Develop underutilized spaces

▪ Ensure quality infill construction

▪ Facilitate building improvements

▪ Support existing businesses

Why organize a downtown Why organize a downtown revitalization effort?revitalization effort?Continued…

▪ Recruit new, compatible businesses

▪ Enhance public improvements

▪ Strengthen marketing

▪ Encourage tourism

▪ Expand special events and programs

▪ Build partnerships and community

How to get your community excited How to get your community excited about downtown revitalization about downtown revitalization

Organize a meeting and invite everyone to talk about downtown; Start talking about your downtown’s strengths and opportunities; Identify and talk to all community stakeholders - property owners,

residents, business owners, and leaders; Visit other communities who have been successful in revitalization; Invite other communities to come to your town and tour; Inventory your downtown businesses; Send out a survey to your local residents - what do they want; Take a walk in downtown - with a camera! Talk to your city and county leaders about the importance on the

health of downtown for economic development; Check out www.mainstreet.org for great examples of communities

across the country who have done it!

Main Street Programs are Main Street Programs are Development PartnersDevelopment Partners

▪ Market feasibility/studies

▪ Understand local codes, ordinances, SID’s, _overlays, design guidelines, TIF districts…

▪ Identify/connect with local stakeholders

▪ Parking management

▪ “Bridging the gap” through incentives, loans…

▪ Publicity/public relations

Think Like A DeveloperThink Like A Developer

What drives development? Who drives development? What barriers exist? What are the intrinsic strengths of the

community? What are the overlooked opportunities? What is the community personality? What does the community do well? What tools/resources exist?

• “Physical beauty”

• “Opportunities for socializing”

• “Differentiation”

• “Unique characteristics of place”

• “Real buildings, real people, real history”

• “Walkability”

• “Dynamic experiences”

Downtown’s provide it!

Todd MorganCommunity Development Program Director

Tennessee Main Street Coordinator

Tennessee Department of Economic & Community Development – Rural Services Division

615.532.3595Todd.Morgan@TN.gov

www.TennesseeMainStreet.org