ABC’s of Urban Renewal

An Abbreviated Guide to Helping You Understand
the Basics of Urban Renewal in Colorado

According to National Public Radio’s (NPR) website, “The 2012 session is likely to be a tough one … rife with partisan politics.” Unfortunately, and unlike many issues that will be discussed by the legislature this year, urban renewal is one of those rare topics that cross party lines. It seems to evoke emotions in both Democrats and Republicans, and experience has shown that at the root of these emotions is either misinformation or a lack of information.

In an effort to educate the Colorado citizenry and its leaders about what is fact versus fiction when it comes to urban renewal, Downtown Colorado, Inc., together with the Colorado Municipal League and Ricker Cunningham, are going to publish a series of articles on this topic, featuring questions and answers; testimonials from both citizens and community leaders with first-hand knowledge of urban renewal projects; case studies; and, legislative updates.

This, the first of these articles, is intended to provide you with a foundation of understanding about urban renewal through a series of questions and answers often raised during the urban renewal planning process We welcome any comments you might have on this series – possible topics, perspectives or testimonials.

What is urban renewal?
Urban renewal is a statutory tool used by municipalities to make improvements within a designated area of the community. The Denver Urban Renewal Authority’s website describes it as a “tool used to assist in the redevelopment of blighted property and help foster sound growth and development.” With establishment of an urban renewal area by the local governing body, new tax revenues (Tax Increment Financing – TIF) resulting from and created by future taxable improvements may be reinvested in the area for purposes of public benefit.

What is Tax Increment Financing (TIF)?
Tax Increment Financing (TIF) is a unique mechanism that enables an urban renewal authority to use the net new tax revenues generated by projects within a designated urban renewal area to help finance future improvements. TIF is a new source of tax revenue, not an additional tax, that would not be available but for new investment.

What can TIF be used to finance?
TIF, the new tax revenue that results from property investment and reinvestment in the urban renewal area may only be used for improvements that have a public benefit and that support stated redevelopment efforts, such as: site clearance; construction of streets, utilities, parks; removal of hazardous materials or conditions; site acquisition; and construction of public facilities.

Can TIF always be used to finance a project?
No, TIF may only be used within an urban renewal area where “blighting conditions” exist and for projects that meet stated public objectives. Most urban renewal authorities require that applicants for TIF revenues provide documentation that the proposed improvements are financially infeasible without assistance by the urban renewal authority.

If an area is described as “blighted” what does that mean?
The legal term “blight” describes a wide array of urban problems, which can range from physical deterioration of buildings and the environment, to health, social and economic problems in a particular area. While considered to be an offensive term by some, it is actually a condition defined by law. See below.

According to Colorado State Statute (CRS 31-25-103) (2), a “blighted area” is defined as follows: “Blighted area” means an area that, in its present condition and use and, by reason of the presence of at least four of the following factors, substantially impairs or arrests the sound growth of the municipality, retards the provision of housing accommodations, or constitutes an economic or social liability, and is a menace to the public health, safety, morals, or welfare; …

(a)	Slum, deteriorated, or deteriorating structures;
(b)	Predominance of defective or inadequate street layout;
(c)	Faulty lot layout in relation to size, adequacy, accessibility, or usefulness;
(d)	Unsanitary or unsafe conditions;
(e)	Deterioration of site or other improvements;
(f)	Unusual topography or inadequate public improvements or utilities;
(g)	Defective or unusual conditions of title rendering the title non-marketable;
(h)	The existence of conditions that endanger life or property by fire or other causes;
(i)	Buildings that are unsafe or unhealthy for persons to live or work in because of building code violations, dilapidation, deterioration, defective design, physical construction, or faulty or inadequate facilities;
(j)	Environmental contamination of buildings or property;
(k.5)	The existence of health, safety, or welfare factors requiring high levels of municipal services or substantial physical underutilization or vacancy of sites, buildings, or other improvements;
(l)	If there is no objection of such property owner or owners and the tenant or tenants of such owner or owners, if and, to the inclusion of such property in an urban renewal area, “blighted area” also means an area that, in its present condition and use and, by reason of the presence of any one of the factors specified in paragraphs (a) to (k.5) of this subsection (2), substantially impairs or arrests the sound growth of the municipality, retards the provision of housing accommodations, or constitutes an economic or social liability, and is a menace to the public health, safety, morals or welfare. For purposes of this paragraph (1), the fact that an owner of an interest in such property does not object to the inclusion of such property in the urban renewal area does not mean that the owner has waived any rights of such owner in connection with laws governing condemnation.

Source:  Colorado Revised Statute 31-25-103(2).

What is a Conditions Survey (Blight Study) and why do one?
A conditions survey (or blight study) is an independent investigation into whether any or all of the factors listed above are present within the boundaries of the proposed urban renewal area. An area may only be designated as an urban renewal (or redevelopment) area after the following:

• Independent blight study or conditions survey has been prepared and presented first, to the municipality’s urban renewal authority, and second, to its Council;
• Stakeholders have been contacted; and
• City Council or Board of Commissioners accepts the findings of the conditions survey and adopts (by resolution or ordinance) the urban renewal plan.

What is the process for establishing an urban renewal area and advancing an urban renewal plan?  Generally –

1. Determine Survey Area Boundaries
2. Verify Presence and Location of Blighting Factors
3. Prepare Conditions Survey
4. Present Conditions Survey Findings to Urban Renewal Entity and Council for Acceptance
5. Identify Market Opportunities Within Area and Quantify Timing
6. Together with Stakeholders – Define Future Role of Area in Community
7. Prepare Urban Renewal Plan
8. Complete Financial Analysis (Tax Increment Finance – TIF)
9. Complete Impact Analysis (as per statute) and Share With Impacted Taxing Bodies
10. Present Urban Renewal Plan to Urban Renewal Entity and Council for Adoption
11. Issue Request for Projects
12. and/or Implement Plan

How many individual urban renewal areas can a community establish?
There is no limit to the number of individual urban renewal areas a community may establish within its municipal boundaries, however, the statute requires that the boundaries of each area be defined “as narrowly as possible.”

Note:  In 2010 and 2011, Ricker│Cunningham conducted a statewide survey of urban renewal authorities. The results of that survey may be obtained by contacting either Anne Ricker at 303.458.5800 or anne@rickercunningham.com or by visiting the DCI website. An update to that survey is currently underway. If you receive a request to complete the 2011 / 2012 survey, we encourage you to do so in a timely manner so that the results may be used during the current legislative session.

Anne Ricker is a principal at Ricker Cunningham, a real estate advisory firm that works with municipalities, governments, advocacy organizations and investors to enhance communities through economically sound projects. Paul Benedetti, Esq., and Mark Radtke, Colorado Municipal League, also contributed to this article.

Tags: tax-increment financing, TIF, urban renewal

What’s Happening with Urban Renewal Legislation in Colorado?

Anne Ricker, Ricker Cunningham, Discusses Why Urban Renewal Law in Colorado Is Under the Microscope Again

It’s January in Colorado and that means the legislature is back in session and the urban renewal law is, once again, under the microscope. As of the date of this article, two possible pieces of legislation are being considered. The first is designed to require urban renewal authorities to complete uniform financial reports. Fortunately, many urban renewal authorities already have internal standardized systems of reporting and many others have expressed intent to do so. The second piece of legislation is related to the state’s current statutory mandate to fund pupils at an equal level and the corresponding “backfill” of school budgets in accordance with a statutory funding formula. .

A March 2010 article by Raymond Johnson, a graduate student at CU-Boulder studying mathematics, describes the Colorado school finance formula established by the 1994 School Finance Act. The formula determined a base funding amount (per pupil) and funding factors (extra money for cost of living, personnel costs, district size, at-risk students and online students) that together define ‘Total Program’ funding. “In addition to Total Program funding, some schools get state ‘categorical’ funding, which provides extra money for six categories: small attendance centers, English language proficiency, gifted and talented, special education, transportation, and vocational education.” 

So what does this have to do with urban renewal?  Article X, Section 2 of the Colorado Constitution requires the State to establish and maintain a thorough and uniform free public school system throughout the state. The School Finance Act establishes a per-pupil funding obligation for each school district based on the number of district students on October 1 of each year. Local property taxes are counted first and the state’s share makes up the difference. Historically, local property taxes made up the majority of funding. However, since property taxes have decreased and will continue to do so largely because of the impact of the constitutional Gallagher Amendment, the state’s share to “fill” needed in the amount mandated for equal pupil funding has steadily increased. If local property taxes contribute more revenue, the state share falls, and, conversely, if local property taxes fall, the state share rises.

When an urban renewal area is established within a community, a portion of future revenues may be used to pay for improvements that provide a public benefit (i.e., parks, roads, parking structures, life safety facilities, and utilities). While not negatively impacting property values (in fact, in the vast majority of cases positively increasing property values), the capture of future property tax revenues within an urban renewal area has been cited as a contributing factor to the level of state back-fill required in some school districts despite the fact that without the commitment of public funds, the increase in tax revenue would not exist. The second piece of legislation would eliminate the state’s back-fill of school districts without offering them another source of revenue. Although not clear how, it seems the state may force school districts to count increases in TIF funds that are not received by the school district as part of the local share and reduce the state share by the same amount. While not citing urban renewal in the bill, the net effect would be to pit school districts against urban renewal authorities and any other entity they deem to be a threat to future budgets.

Anne Ricker is a principal at Ricker Cunningham, a real estate advisory firm that works with municipalities, governments, advocacy organizations and investors to enhance communities through economically sound projects. Paul Benedetti, Esq., and Mark Radtke, Colorado Municipal League, also contributed to this article.

Tags: tax-increment financing, TIF, urban renewal

Smart Solutions to Empty Storefronts Popping Up in Colorado

Transforming Stagnant Spaces into Lively Places

In this current economy, it is not surprising to see vacant storefronts appear in Colorado communities of all sizes. But, what does surprise us is that the community and property owners let that storefront sit empty when there is an easy solution that benefits everyone: filling the space with a pop-up business.

There is no good reason to let empty storefronts remain empty. They create a stagnant space in what could otherwise be a lively contribution to a thriving commercial district. In fact, at many a technical assistance visit, DCI’s team of expert consultants has recommended a community fill its empty spaces with temporary installations otherwise known as “pop-up businesses.”  

What Is a Pop-up Business?

A pop-up business or store is created when an empty storefront temporarily houses a business for the benefit of both the property owner and the business owner. It is a fantastic solution to livening up those empty retail spaces and it is becoming popular across the country. In fact, pop-up stores are not the only businesses that are popping up these days…pop-up restaurants, pop-up food trucks, even pop-up bars are sprouting in communities across the country.  

Why Should You Consider a Pop-up? Now more than ever, when economic resources are at their thinnest, collaboration is key for the survival of any community. By utilizing a pop-up model for empty retail spaces, everyone is a winner!

• Property owners: A pop-up business “sells” your space for you. A pop-up store can do for a retail space what home staging does for a house for sale—highlight the potential and encourage a business owner to picture themselves and their customers in the space. Think about it…if you were confronted with two potential retail spaces, one sitting dark, empty, and dusty, and one that was brimming with patrons and life, which one would you choose?
• Potential business owners: A pop-up business allows you to “test the waters.” Whether a home-based business is considering a permanent move to a retail space or an entrepreneur wants to test out a new product, a pop-up space allows one to leap into the entrepreneurial pool without the risks of a permanent investment. It can provide the valuable information necessary to decide whether a business model needs to be tweaked or if you need to head into another direction all together.
• Surrounding business owners: A pop-up business helps to encourage a lively commercial district. A vacant storefront can drag down the entire commercial district. But, filling this space with a temporary business will add to the vitality and encourage more business for everyone. After all, people attract more people…the more customers that are out and about in your district, the more intriguing the district will appear to others. Plus, encouraging business owners to test the waters and tweak their business model can eliminate a string of failed businesses, which can negatively impact the entire district.  
• Community at large: A busy, attractive commercial district with no stagnant spaces provides a safe and lively environment, which benefits residents and visitors alike.

How Can a Pop-up Store Be Used?

Now that you’re convinced that you should never let a retail space sit empty, perhaps you’re wondering how to fill it? Here are some ideas from Colorado communities around the state that may provide you with a little inspiration.

1)  Create a temporary art gallery: Give local artists the chance to showcase their work. This could be as simple as displaying their artwork on the wall or as involved as creating an artist collaborative for artwork to be sold.  

Colorado example: I Heart Denver (located in the 16^th Street Mall Pavilions Denver, Colorado) provides a locale for local artists and designers to sell their wares. The space supports “shopping local,” and artists collect 70 percent of all they sell.

2) Help a home-based business transition to retail: Entrepreneurs with a home-based business or new idea can safely test the waters without the usual risks. A temporary business allows entrepreneurs to work out the kinks and decide if a storefront is the best option.

Colorado example: Following up on a recommendation from a DCI technical assistance visit, Cedaredge, a small town of just over 2,000 in Delta County, utilized an empty storefront in the commercial district to bring in local home-based businesses to display and sell their products.

3) Engage the local community youth: Communities can encourage local youth to have pride in their community by encouraging research projects on the local history that culminates in an open house. Or provide students with the opportunity to have their own gallery, displaying artwork for the community to visit and admire. Bonus: proud parents who come to support their kids will create instant foot traffic. Colorado example: In 2007, Eads was awarded a Governor’s Award for Downtown Excellence for the high school students’ creation of “Sample Town.” These amazing students spent months researching viable businesses and assembling business plans for the empty retail spaces in Eads. The plans were unveiled to the public when the students each spent a day manning the empty storefronts and sharing their entrepreneurial visions with visitors.   

Need more inspiration? For more ideas of pop-up examples across the country, visit www.popupinsider.com/blog.

STRIDES Hosts Economic Development Training, Celebrates Rural Health Day

 

Rural Health Day is November 17 

The National Organization of State Offices of Rural Health (NOSORH) and State Offices of Rural Health will celebrate National Rural Health Day on November 17. Celebrations this day are designed to showcase Rural America and increase awareness of the unique healthcare issues facing rural communities.

Nearly 62 million Americans live in rural communities. These individuals  have unique healthcare needs that should not be overlooked and need to be addressed.

Economic Development Training plus Colorado STRIDES Offers Lodging Incentive!  

Nine regions representing 40 counties in Colorado specifically recognized the importance of healthcare as they completed their Bottom-Up Economic Development Statements.
 
To support these efforts to bolster Colorado’s economy by further integrating the healthcare sector into economic development issues, Colorado STRIDES is hosting this year’s U.S. Western Regional Rural Health Works training!   This 1-day national training event — held in Aurora — is a great opportunity to take local, regional, and state attention to the importance of healthcare to economic development to the next level! 

This national training takes place at Colorado Rural Health Center in Aurora, Colorado, on Tuesday, Dec 13, from 9 a.m. to 4 p.m.  The registration fee is only $49. 

The training features training in:

(1) economic impact analyses of healthcare
(2) mapping and spatial data analysis
(3) the new IRS-mandated community health needs assessment for nonprofit hospitals
(4) budget studies for new or expanded health services 
 
Participants will learn to measure the economic impacts of the health sector on regions, counties, or zip codes in Colorado.

The training features training in:

(1) economic impact analyses of healthcare
(2) mapping and spatial data analysis
(3) the new IRS-mandated community health needs assessment for nonprofit hospitals
(4) budget studies for new or expanded health services
 
Participants will learn to measure the economic impacts of the health sector on regions, counties, or zip codes in Colorado.

As an additional incentive for the first 6 qualifying* rural Coloradoans who contact Clint Cresawn after their registration, Colorado STRIDES can offer 1 night’s lodging.  Please note that participation is limited to the first 20 to register.  For more information, or to register now, click here.       

*In order to qualify for the offer of 1 night’s lodging, you must be from rural Colorado, provide proof of registration, and be a professional or committed volunteer in one of the following areas: Health, healthcare, or healthy living; economic development; community development; local or regional government.

Clint Cresawn is the Colorado STRIDES Program Manager. Visit the website to learn more about the Colorado Rural Health Center and STRIDES program. 

Historic Preservation Alliance Holds 2011 Awards

DCI”s Genevieve Zeman Sits on Judging Committee

The Historic Preservation Alliance (HPA) of Colorado Springs provides leadership, education and advocacy to preserve cultural heritage and revitalize neighborhoods. Each year they highlight excellence in preservation and cultural awareness at the Historic Preservation Alliance Awards Gala in Colorado Springs. This year’s awards were presented during the 10th annual awards banquet on Wednesday, October 26, at the beautifully restored Bemis Hall on the Colorado College campus. Nine projects were recognized this year in categories such as Stewardship, Historically Compatible New Construction, Compatible Landscape for a Historic Property, and Historic Civil Restoration.

The Historic Preservation Alliance of Colorado Springs recognized the following projects for 2011:

•    Award of Excellence for Compatible Landscape for a Historic Civil Property: Colorado College and their Van Briggle site enhancements.

•    Honorable Mention for excellence in a Compatible Landscape for a Historic Civil Property: The Navigators and their restoration of the courtyard of General Palmer’s Carriage House at Glen Eyrie

•    Award of Excellence for Historic Civil Restoration: UCCS restoration of the Heller Center for the Arts and Humanities.

•    Honorable Mention for Historic Civil Restoration: Colorado College and the restoration of Arthur House, also known as Edgeplain

•    Award of Excellence for Historically Compatible New Construction in a Commercial Project: Leo R. Gotlieb School.

•    Award for Excellence in a Historically Compatible Residential Renovation: Metzger Residence

•    Honorable Mention for Historically Compatible Residential Renovation: Mahony Residence

•    Award for Excellence in Stewardship: Maujean Residence

•    Honorable Mention for Stewardship: Warehouse Restaurant building Mural Project

The judging for this year’s competition was presided over by Cathleen Norman, Donning Company Publishers, and Genevieve Zeman, Downtown Colorado, Inc.

Hitting the Redevelopment Sweet Spot

Guest Author Jesse Silverstein, Colorado Brownfields Foundation, discusses how redeveloping sugar beet factories impacts Colorado communities. 

Sugar beets were cultivated in Colorado as early as 1869.  The first sugar beet processing factory in Colorado was built in Grand Junction in 1899. By 1906, sugar beet factories had been constructed in Rocky Ford, Loveland, Greeley, Eaton, Fort Collins, Longmont, Windsor, Sterling, Fort Morgan and Brush. By the mid 1930s, Colorado was the state with the largest number of beet sugar factories and at one time or another, a total of 22 factories were located throughout Colorado from the western slope to the eastern plains.

During the 1970s, competition from cane sugar and corn syrup, both less expensive to produce, as well as from artificial sweeteners such as saccharine and aspartame, led to a decline in beet sugar prices. By the early 1980s, many of these factories were shuttered. Today only one Colorado factory remains in operation, located in Fort Morgan.  The sugar beet industry, once the nucleus of company towns, has left these towns with large acreages of land ready for business redevelopment, but for notable amounts of waste left on these sites.

In 2010 and with funding from the US Environmental Protection Agency, the Colorado Brownfields Foundation (CBF) assembled a stakeholder group to identify opportunities and challenges associated with the redevelopment of Sugar Beet Factories throughout Colorado.  Participants included local government representatives from communities along with site owners, regulatory agencies (state and federal), environmental consultants, representatives from industries interested in lime reuse, and materials recycling technical experts.

Common threats identified by stakeholder communities include: large vacant, abandoned, and blighting property; trespassing, vagrancy and vandalism; environmental threats from asbestos and illegal dumping; potential ecosystem impacts from lime waste; nuisance conditions from blowing lime waste; noxious weed growth on piles.

Additionally, these closed factories present lost community opportunities including: lost opportunities for in-fill redevelopment; loss of riparian lands thereby hindering open space preservation; loss of riverfront development opportunities; loss of potential intermodal trail/transit connections (bicycle, pedestrian, vehicular); and loss of community connections, particularly between river fronts, downtowns, and residential districts. Geotechnical constraints limit the ability to construct buildings on lime waste and potential asbestos remediation costs present a high barrier to entry in the redevelopment process. One of the most obvious challenges faced by redevelopment at a sugar beet factory is the sheer volume of lime waste; estimated at up to 1,000,000 cubic yards spread over as much as 40 acres.

Despite challenges, a number of opportunities exist to position these sites as redevelopment opportunities:

• Many locations have existing heavy rail service and are in close proximity to major highways, an industrial opportunity for redevelopment that can be an advantage;

• Given the former industrial usage of the sites, there is likely three-phase electric service to these sites, capable of both deliver energy to the site and moving (renewable) energy from the sites;

• The proximity of these sites to commercial cores, as well as the large size and industrial zoning of these sites, present primary jobs economic development opportunities close to work force housing and with the ability to increase downtown daytime populations

Cleanup and redevelopment of some of these sites are proceeding on the heels of much effort:  the Town of Eaton has acquired title to its factory through the purchase of tax liens and is negotiating for intermodal transit reuse of the buildings.  The City of Greeley has formed a public-private partnership and is assisting Leprino Foods in locating a major manufacturing facility to its former sugar beet site.  Other lime piles are slowly being drawn down for use as in treating acid mine drainage.  However, the cost of transporting lime waste to end uses is still a major burden and CBF, the CO Department of Local Affairs, and various pilot communities are seeking to create a market opportunity to bring value-added production to lime waste a as raw material.  Next steps in this effort are to apply for USEPA Brownfields Assessment Grant funding (please contact CBF or DOLA for more information) to continue to research the opportunities to recycle lime waste and recycle the underlying real estate for infill redevelopment.

 Jesse Silverstein is the executive director of Colorado Brownfields Founation, a nonprofit organization that provides technical assistance with financing, redeveloping, and reusing brownfields sites.

Tags: brownfields, community revitalization, downtown revitalization, redevelopment

Partnerships and Place Management

Guest Author Jamie Licko, Centro, Inc., Blogs on Importance of Public-Private Partnerships

It’s a complex challenge for our cities – governments are facing escalating budget deficits and financial challenges, while our downtowns and urban areas are becoming more dense and populated. Resources to provide services are waning, just as the need for well-managed ‘place’ in our cities is increasing. What’s the solution? In the U.S. and increasingly around the world, public-private partnerships are offering an effective and economical approach.

Every day we open the newspaper to stories of another financial crisis unraveling somewhere in the world. Globally, governments are facing significant economic challenges  finding the dollars to provide basic services, much less enhancements, is difficult. Meanwhile, our cities and urban areas are become denser and busier (nearly 50% of the world’s population lives in cities today), and the demand for clean, safe and comfortable public spaces is increasing.

Place management isn’t a new concept, but it’s one that’s increasingly gaining attention around the globe as a tool to keep cities vibrant and economically competitive, even as there are seemingly fewer resources to focus on such things. If you Wikipedia the term, it says ‘place management is the process of making places better.’ Simple enough, but who does the work and how does it get done?

The concept of business district partnerships and Business Improvement Districts (BIDs) is a relatively established one here in North America. Canada and the U.S. have been utilizing informal and formal organizational tools for some 40 years to fund and manage improvements to a revitalizing area. But increasingly, these partnerships are becoming more complex and more sophisticated. And today, the increasing pressure to provide a competitive ‘place’ while slashing government budgets and serving increasing populations means local governments the world over are beginning to see the need for, as well as the tremendous benefits of, decentralizing services and control and empowering private-sector led place management organizations.

A Growing Need in North America

Private-sector led place management isn’t an entirely new story in the United States and Canada, but increasingly these organizations have seen a greater level of independence and influence. BIDs are now fairly pervasive throughout the US but changes in the economic landscape are making them increasingly important tools.

In Chicago, where private-sector led place management has historically failed to take hold because of former Mayor Richard M. Daley’s strong involvement (and public sector investment) in downtown’s evolution, the winds of change are blowing and reality is sinking in. With new mayor Rahm Emanuel in office and the city facing a $600 million budget deficit, the city is bracing for significant service cuts and a ‘new era’ that downtown stakeholders understand likely means a larger private-sector financial commitment to ‘place.’ The upside? With this investment comes some greater control over how services are delivered and how downtown Chicago is managed. Stakeholders in Chicago’s Loop are exploring the possible creation of a large BID to generate resources to ensure the district remains competitive through what are sure to be some challenging times, but they are also seeing some interesting opportunities to better partner with the city to decrease costs, increase levels of service, and be more responsive to the overall economic development needs of the stakeholders.

It’s a bold move for Chicago –- a city that has always relied heavily on public sector dollars to take care of both the big stuff (e.g. Millennium Park) and the details (the gorgeous flower baskets that line the Loop’s streets).

Other cities across North America are also making the move towards stronger partnerships – Boston just launched it’s first BID, for example – while established organizations in places like Philadelphia, Washington D.C., New York and many others across the states continue to increase their influence in building and managing place for a new generation. In California, interestingly, partnerships are likely to become increasingly important as the state’s community leaders struggle with the loss of redevelopment dollars historically used quite abundantly to reinvigorate and invest in cities and downtowns.

Here in North America, public/private partnerships to manage place have established themselves and are recognized as important tools – and becoming increasingly so. The success of strategies here is carrying over to the rest of the world, where similar shifts are occurring.

Changes Abroad

Second only to North America in the success of place management is the UK, where more than 100 BIDs have been set up since the national BID legislation was established in 2004. The success of BIDs follow on the heels of a long-history of public sector funded ‘town centre management’. For some 25 years there has been significant and widespread interest in different approaches to place management, and the focus has progressively broadened to the point where BIDs have taken hold and spread like wildfire across the country in places large and small. As the UK along with much of Europe faces tougher austerity measures, BIDs are picking up steam as a tool to ensure competitiveness in not just commercial and town centres, but industrial estates as well. Additionally, the recently passed (December 2010) Localism Bill in the UK which aims to shift power from central governments back into the hands of individuals, communities and town councils is aiding in the development of not just BIDs but generally in the development of stronger and more complex public/private partnerships to manage place.

The UK’s success in establishing effective place management efforts is beginning to take hold elsewhere in Europe as well, including in Ireland, Germany, the Netherlands and Italy where countries are strengthening government-led place management initiatives while developing their own national legislations to allow for formal BID-like tools to encourage private-sector participation and management. Beyond Europe’s borders, South Africa continues to utilize their BID tools to strengthen both residential communities and business districts.

A Willingness to Explore New Approaches in Asia

Asia has historically not been considered fertile ground for establishing formal public/private partnerships to improve place. Strong authoritarian government structures have never really allowed partnerships to develop or flourish. Today, shifting economies and a vastly urbanizing population is changing even that. China, Japan, even Malaysia and India are exploring new approaches to managing place… but none is so far advanced as Singapore.

The city-state of Singapore today is undertaking significant steps to explore how to improve partnerships between the public and private sectors, and to develop and implement formal place management partnerships throughout the country, including exploration of a legislative BID-type model similar to those used in the US, UK and elsewhere.

The work is raising some interesting cultural challenges that are requiring both the public and private sectors to rethink their relationship. The private sector – heavily reliant on the public sector to make unilateral decisions about how a place is developed – is timidly engaging in opportunities to have more control over how problems are resolved, solutions are developed, and the implementation of new approaches are managed. Meanwhile, the public sector is slowly getting comfortable with releasing responsibility for the management of place to a non-government agency. There are growing pains, to be sure. But the seeds of success are slowly starting to bear some fruit.

The impetus for this recent push to explore place management and public/private partnerships in Singapore hasn’t been made precisely clear by the Singaporean government – they are guiding the partnership development effort – though there are some likely reasons; the Singaporean government is relatively young, but has grown quickly by planning, building, implementing and managing development with very little private sector influence. Managing quickly changing (and aging) urban precincts in a place that has developed at warp speed is becoming increasingly cost-prohibitive and human-resource intense. Long-term, the Singaporean government is beginning to see benefits as demonstrated by places like the US and UK in putting the burden more squarely between the public and private sectors and generating revenue streams that alleviate their ongoing management costs.

Expecting More Changes Ahead

We’re experiencing a rapidly changing global economy and cities that are growing denser – managing this growth and the urbanization of places, and funding the improvements necessary to keep our aging cities clean, safe and welcoming will require more than just public sector support. Place management models that bring together the public and private sectors to work together to both fund and manage improvements to place make economic sense, and arguably offer more effective solutions to creating healthier and better functioning places.

Jamie Licko is the president and founder of Centro Inc., which has been involved in the exploration of a new place management model for the Chicago Loop and is currently working in partnership with UK-based The Mosaic Partnership in the development of a new place management model for Singapore. Jamie will be speaking on Extending Your Downtown Organization’s Reach: Creating Partnerships and Leveraging Relationships at DCI’s Annual Conference on Wed, Sept 21, 4:30pm.

Tags: downtown revitalization, public-private partnerships

What Is Culinary Tourism?

Erik Wolf, International Culinary Tourism Association, will provide a plenary address at DCI’s 2011 Annual Conference in Durango this fall. Culinary Tourism for Towns of All Sizes will be held on Friday, September 23 at 11:15am.

 

Food is the , sexy new topic of conversation everywhere in the world, and Colorado is no exception. Did you know that there is an entire industry that exists to help businesses to promote their food products as attractions to visitors and locals alike? 

 

Culinary tourism is the pursuit of unique and memorable culinary experiences, often while travelling, but one need not go far from home can be a culinary tourist — trekking across town to try out a new restaurant is also considered culinary tourism. If that’s too lofty, then think of it this way:  if an area has unique food and drink, these are part of the area’s cultural assets and they need to be preserved and promoted.

 

Culinary tourism encompasses culinary experiences of all kinds; restaurants, cafes, wineries and breweries – of course – but also cooking schools and classes, culinary tours, cookbook and kitchen gadget stores, culinary events, culinary attractions, farmers markets, culinary lodging, food and drink clubs, culinary media, and food manufacturers.

 

More than ever now there are food and cooking shows on televisions throughout the world. There also more well-known celebrity chefs than ever, and also a large increase in the popularity of local farmers markets. Consumers are becoming more educated; now aware and concerned about things like food miles — the distance ingredients have traveled, to land on the plate in front of you. This illustrates the increasing importance of food knowledge everywhere.

 

Other trends include the demand for highlighting local food on menus, and consumers desire to learn everything they can about the ingredients in a dish.  Do your wait staff know everything about each dish you serve, such as where the ingredients come from, and if they are not local, then why are these ingredients sourced from outside the region?  You might expect locals to understand the beef on your menu is from the Colorado farmer down the road, but how will a visitor to your area know? 

 

Consumers and travelers alike seek unique and memorable experiences – something they can tell their friends about.  If you present them with a story about their dish, they are more likely to call it an experience than a meal, which makes it memorable.   Think about your own favorite meal experience – what was memorable about it?  The décor?  The presentation?  The food?  Service?  Price?

 

Culinary tourism is a market that continues to grow every year.  Visitors know of Colorado’s natural beauty, but the state’s food and drink businesses need to boast more the state’s unique and memorable culinary products.  When an average 25% of every visitor’s spending is on food and drink, how can we ignore the potential for growth in this industry?  If we understand the motivation of a culinary traveler and what they are looking for, we can leverage our businesses and send visitors home to tell their friends about the amazing experience they had -– what better, more cost-effective marketing can you get than word of mouth?

 

Erik Wolf serves as the President of both the International Culinary Tourism Association and FoodTrekker Publishing.  www.culinarytourism.org  and www.foodtrekker.com.

Tags: culinary tourism, economic development, tourism

5 Business Retention Strategies for Communities

Statistics show that between “40 and 80 percent of new jobs are created by existing businesses.” This means that retaining healthy existing businesses is essential to the local economy. If existing businesses close or relocate, it leaves “missing teeth” in the smile of your downtown, negatively impacting the remaining businesses. It’s important to not take your existing businesses for granted!   

 Business retention and expansion requires that communities provide the right environment, as well as processes, that enable businesses to thrive. Here are a few tips for communities looking to do business retention.  

 1. Understand strengths and stakeholders. Whether you are an individual business, a commercial district, or an entire community, it is important to understand your assets and resources. This includes understanding your community stakeholders, which may be other businesses, residents, service providers, or the local government. Communities who understand the resources available and the environment in which they work have the ability to compliment rather than compete with neighbors. This is a formula for the whole community to prosper together.  

 2. Develop long-term goals. No matter if you are an individual business, a commercial district, or an entire community, it is important to develop a series of objectives for which to aim. Creation of a strategic plan that includes clear tasks and timelines will help to ensure that you will have measureable results and the ability to move forward. 

 3. Create a local advisory committee. Creating regular communications with stakeholders is key to continued success in planning for successful businesses. This could be a formal committee or a casual chat over coffee. Communities who are able to access ideas and action from businesses and residents will be better placed to provide the support their businesses need to not only survive, but to thrive.

 4. Identify business resources. Business owners are often so busy that they don’t have time to research resources that are available to them. If the district manager is able to identify and make available a list of training, funds, tax abatements, and counseling services to support local business, it will help businesses to access the support they need.

5. Gather data and statistics. While not every community can afford a full market analysis, developing some understanding of a few key factors can help you to gain insight into your local economy. Important market indicators that even small communities can tackle include which businesses exist, how rents and property values compare to neighboring communities, and which trends have historically impacted your market.  

If you are interested in moving forward with developing a business retention strategy, please get in touch with DCI. We can suggest a plan and make referrals for your community.

New Benefit for DCI Members: Discount on Customized Community Website

One Lucky Member Will Be Selected for Free Custom Site Design!

Urban Interactive Studio (UIS) and DCI are partnering to offer DCI members a chance to receive an interactive website for their community using UIS’s EngagingDowntowns product. EngagingDowntowns allows you to provide one central place online for citizens, tourists, investors or realtors to find local businesses, event announcements, news, historical information, mobile tours, and real estate. Users can also provide their own feedback about community happenings and engage with you through social media.

EngagingDowntowns is a turn-key marketing website for mainstreets, downtowns, business improvement districts.Powerful, yet easy-to-use administrative tools, map-based listings and mobile tours enable you to rapidly create an engaging Web presence to showcase your community, businesses and events in a highly compelling way.

Custom websites can set an organization back by $10,000 or more in development and hosting fees without providing many of the interactive and social media features common on today’s websites. With UIS and DCI’s partnership, one eligible member of DCI will be selected to receive a custom EngagingDowntowns website to showcase their community for only the annual hosting fee of $500. At DCI’s Annual Conference, we will launch the full product at an introductory price of $2,550 for DCI members.

How to participate:
●    Must be a member of DCI
●    Must have content ready before end of July
●    Website goes live no later than end of August

Contact marketing@downtowncoloradoinc.org for more information. Deadline for application is July 30, 2011.

Apply online to win customized website now!

Urban Interactive Studio (UIS) LLC is a full-service technology consulting firm specializing in Web and mobile solutions for urban planning agencies and organizations, as well as private corporations, non-profit firms, and government institutions.