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Commercial Development

Commercial Development. What Works, What Doesn’t. Benefits of Growth. Quality of Life Full-time Jobs, Part-time Jobs, First Jobs, etc. Don’t need to drive 15 miles to get a new toothbrush Municipal Sales Tax Revenues are non-dedicated (flexible use by City officials)

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Commercial Development

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  1. Commercial Development What Works, What Doesn’t

  2. Benefits of Growth • Quality of Life • Full-time Jobs, Part-time Jobs, First Jobs, etc. • Don’t need to drive 15 miles to get a new toothbrush • Municipal Sales Tax Revenues are non-dedicated (flexible use by City officials) • Tax others through Sales Tax • Property Tax for Schools with few students • Construction and Support Jobs

  3. What is the Situation Nationally? • Downtowns Struggling? • Malls Struggling? • Shopping Centers and Antique Malls Struggling? • Schools Consolidating? • Video Stores Declining? • Restaurants Multiplying? • Convenience Stores Uncertain? • Churches, Taverns, Branch Hospitals, Banks, Discount Stores and Pharmacies Multiplying?

  4. What has changed? • In 1950s, Seven-person families, mom at home, one car- Downtown shopping in daytime, eat at home. Families mainly local, Blue Laws.. • In 1960s, Five-person families, mom at home, 2 cars, Shopping centers in daytime and Sunday. Rise of “Fast Food”. Baby Boomers work retail. Interstates bypass towns and focus traffic. • In 1970s, 80s, and 90s, 2.3 person households, multiple cars, rise of malls, consolidation of stores (towns lose implement dealers, car dealers, downtown stores, etc.). SHOP AFTER WORK ! Chain Stores and Walmart.

  5. The Situation from 2000 to Present • America Aging- Less Money, don’t want to drive 30 miles to shop • Single Parent Families-Convenience, Discount and Time Saving • Rise of Discount Stores- Walmart, Dollar General, Holiday Inn Express, • PC’s Everywhere- Shop at Home, Avoid Sales Tax, On-Line Newspapers. • Trend away from Gasoline- High Mileage cars mean less stops to convenience stores and gas stations. Electric Cars, Natural Gas Cars are coming.

  6. New Trends • Assisted Living and Retirement Communities (Malls) • Branch Clinics, Branch Hospitals, Branch Banks • Death of the Video Store • Grocery Delivery for Elderly • Farmer’s Markets and Locally Grown Foods • Extreme Couponing • Pharmacy on “Every Corner” (Walgreens, CVS) • Telecommuting- Need High Speed Data Transfer

  7. Self Assessment • Reilly Analysis • Compare to Average per Capita Spending on Items • Develop Estimated Market Spending • Illinois KOB Sales Tax Reports • Back into Cash Estimate • Adjust for Population and Economy

  8. What Does Not Work • “Heavy Resistance” Development (Easier to go where they are shopping now for new store) • High End Merchandising- (ie K’s, ) • Movie Halls • Lack of Credit Card Access • Dependence on old Telephone Infrastructure • Trying to do the “Same Old Thing” Down Town • 9am to 5pm Shopping • Competing with Walmart • Inconvenient or unsafe parking/shopping

  9. What Works for Existing • Bill Payment/Postal Centers in Downtown Areas and Stores to Increase Foot Traffic • High Speed Data Transfer to all parts of town • Hotels for Guests • Medical Facilities • Auto Repair • Work at Home, Telecommute • Helps industry, warehouse, etc.

  10. What Works for Existing • Classes for Local Merchants (how to compete) • Advertise “Shop Local” • Advertise “Attractions” on main traffic arteries and then route traffic through Business District • High Schools, County Seats • Parks, State Parks, Attractions • Moonshine, IL, Covered Bridge, Starved Rock, Little Theatre on the Square, Lincoln Sites, Frank Lloyd Wright….

  11. Attracting New Business • “Screen Your Team”. Make sure team members actually want results • Some feel “clustering” helps, others fear competition • Realtors (good and bad) • See “What Similar Towns Have” • Call Companies and “ask what they are looking for”.

  12. Ideas for “Current” Merchants • Zip Codes from Employers (for Ads) • Give Merchant Coupons (especially to “out of town workers”) • “Shop Local” promotion for students • “Shop Local” promotion for seniors • Day trips for Senior Centers and retirement villages • Senior housing and offices in chronically vacant downtown buildings. • Malls and shopping centers converting to senior housing, fitness centers and office areas

  13. Company Recruitment • Do own Research on prospective industries • Check Websites for data, plans and contacts • Some stores simply look for a Walmart, McDonalds, etc and go there. Others avoid them. • Need for Speed. Some Site locators have quotas and bonuses. If you can speed up process, you move to the front of the list. • Follow their schedule. In operation before Christmas Rush (July)

  14. Website Development • Check Search Criteria- Try to “find yourself” • “Poaching” is not specifically illeagal • Have your contact information on “anything that prints from your website”. • Zoning Maps, Zoning Regulations- just contact information- judgment call. • Note incentives like-TIF, free utility extension, etc.

  15. Location Decision • Will research traffic counts (check IDOT) at www.gettingaroundillinois.com • Will Check Census Numbers • Will Check Demographics • Will Check What other stores are in 10 to 30 mile radius • Will Check KOB Sales Tax Reports www.revenue.state.il.us

  16. Location Decision • Will Check Google Earth, Bing Maps for aerial photos and street level • Will do drive by. • Some do not want to be within 150 feet of traffic lights. • Some do not want concrete dividers in the street • Some want to be near Walmart, other avoid Walmart • Some near schools, county seats, etc. • Truck Stops/Travel Centers prefer a site with a “right turn” if possible. • Visibility!!

  17. Location Decision • Will check sales tax level • Will want to see zoning • Will check prior use of site (EPA, gas tanks, lead, etc.) • Some will check City Council Minutes • Will visit town and visit businesses • Will check with IDOT for ability to access roads • Will check IDOT for future road plans. • Some will check newspapers and crime reports • City attitude- Walmart getting sued.

  18. Check to See What they are seeing! Check to See if You Could Find Your Town on the Internet!!!

  19. Get Leads • Check what businesses towns like yours have, contact those type of companies. • Check with local contractors who get Dodge Reports, McGraw Hill for the State. Contact the developers. • Find out who did development X in town Y and call them. Tell them who you are and ask them “what would we need to do to get you to build X in our town?” Then listen and act if you think it is reasonable.

  20. Get Leads • Retail Tenant Directory (pass around) • International Council of Shopping Centers (Meets in each State and Las Vegas) They have attendance lists, face-to-face meetings, can make appointments too. www.icsc.org • Schneidewind and Associates (Does investments and Dollar General Stores) • Rural King- Tim Birk (Waterloo and Rantoul)

  21. Incentives • Increasingly asking for TIFs, Investment Dollars, Utility Extensions, Sales Tax Sharing, etc. • Call others to find out what they offered. • A Dollar General Brings the following:

  22. Dollar General • Payroll - Six full-time positions and three part-time positions, plus seasonal • Work Experience and Quality of Life- First Jobs, part time jobs, • Increase sales at other stores in town • Help Facilitate the Next Project -Companies go where sales are (add $1.6 million to numbers) • Municipal Sales Tax Revenues- $10,500 per year • Utility Margins • Estimated $2,400 annual electricity margin Estimated $21,480 ten-year present value of electricity margins • Estimated $575 annual natural gas margins • Estimated $5,146 ten-year present value of natural gas margins • Property Tax Revenues (Schools, Town, etc) $8,100 per year

  23. Make Contact -Who you are. (Not a realtor/no fee) -Why the Contact. -State the offer. -Features of the offer (price, terms, why property is available, location, property advantages). -Community Attributes (population, TIF, business climate, competition). - Contact person (one or two at most)

  24. Follow Up • All Actions Coordinated through and reported to the Team Leader • Confidentiality • Attitude • Timely Response • If possible, get them to tour the community • Results breed results!!! Success breeds success

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