Citation
Neighborhood commercial revitalization

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Title:
Neighborhood commercial revitalization a primer
Creator:
Horn, Robert D
Language:
English
Physical Description:
96, [33] leaves : illustrations, charts, forms, plans ; 28 cm

Subjects

Subjects / Keywords:
Central business districts ( lcsh )
Neighborhoods ( lcsh )
Urban renewal ( lcsh )
Shopping centers -- Maintenance and repair ( lcsh )
Central business districts ( fast )
Neighborhoods ( fast )
Urban renewal ( fast )
Genre:
Academic theses. ( lcgft )
bibliography ( marcgt )
theses ( marcgt )
non-fiction ( marcgt )
Academic theses ( lcgft )

Notes

Bibliography:
Includes bibliographical references.
General Note:
Submitted in partial fulfillment of the requirements for the degree, Master of Planning and Community Development.
Statement of Responsibility:
Robert D. Horn.

Record Information

Source Institution:
University of Colorado Denver
Holding Location:
Auraria Library
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
09819223 ( OCLC )
ocm09819223
Classification:
LD1190.A78 1983 .H72 ( lcc )

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ENVIRONMENTAL DESIGN
AURARIA LIBRARY
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NEIGHBORHOOD
COMMERCIAL
REVITALIZATION: A PRIMER
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ABSTRACT
Across the country today, many communities are reaping the rewards of revitalized neighborhood commercial districts. Many factors are responsible for these success stories. Revitalization experience indicates that an urban retail market does exist, albeit not as strong as it once was. The key, in many regards, has been the neighborhood commercial district's ability to adapt
• '-s • - • . .i' r
to a declining and/or changing market and capitalizing of its assets. The adoption of shopping center management and retailing principals and improved physical appearance are common and necessary basic' ingredients for success. Neighborhood commercial revitalization is possible, but only if property owners, merchants, and residents are willing to organize and work together to improve what is collectively theirs: their public and business image.
Neighborhood commercial revitalization is commonly defined as the physi al up-grading of and financial investment in older commercial districts of inner-city neighborhoods. Revitalization also implies growth, progress, and the infusion of new activities into a stagnant or declining commercial district which is no longer attractive to the investor or shopper alike. Typically, revitalization involves reversing a disinvestment cycle.
"Merchants as their own developer" describes the organizing philosophy of the Primer. A voluntary, self-help approach is recommended for only small, one to two block commercial areas. The neighborhood commercial revitalization process is based on the organizational and management principles of suburban shopping centers. Learning from the competition is necessary to reverse the negative image of neighborhood shopping in many areas. The "shopping center model" has been used successfully around the country, through in most cases cities have used legal sanctions to insure cooperation and uniform improvements. Put simply, the neighborhood commercial revitalization program is composed of:


• Organization and Management
• Assessing and Planning Revitalization Potential
a Design Improvements
• Business Development
» Promotion and Marketing
• Financing for Improvements
The Primer's intent is to solve the problem of information. Neighborhood commercial revitalization has been one of the last aspects considered in a neighborhood revitalization strategy. Up-grading housing and solving other complex social problems have been tackled first. "How to" literature is plentiful in these areas. Literature on neighborhood commercial revitalization is mostly programmatic and does not serve the purpose of providing enough information to allow for decision making in the case of neighborhood-initiated efforts. In most cases, the literature is geared toward downtown redevelopment rather than the neighborhood business sector.
The response to this problem has been the development of the Primer.
The Primer provides an overview of the neighborhood commercial revitalization process as it relates to a voluntary, self-help effort initiated at the neighborhood level. Its intent is to describe some of the tools and processes available for such a purpose. The "how to" approach is used instead of "why" to better assist the non-profes.sional in understanding the process of revitalization and commitements needed to undertake it. As such, it provides information for use within a decision making framework for neighborhood leaders to determine , acceptance of the revitalization concept.
The Primer stresses that revitalization is not an end in itself. It is an on-going process by which neighborhood merchants can undertake to stay ahead of their competition. Commercial revitalization should be attempted within a


framework of overall neighborhood revitalization. Commercial revitalization can be the cornerstone. Two elements stand out in commercial revitalization success stories: the key was the preparation of an overall redevelopment plan; and the development of legally enforceable design, participation and management standards. Obviously, there is no one pattern or strategy for success. Mo two neighborhood commercial districts are alike. Commercial projects initiated and managed on a voluntary basis only are successful a third of the time. The key to improve this percentage is strong local leadership, majority participation of merchants and property owners, and involvement of the neighborhood in the commercial revitalization process.


NEIGHBORHOOD COMMERCIAL REVITALIZATION: A PRIMER
ROBERT D. HORN MAY 1983
A thesis submitted in partial fulfillment of the existing requirements for a Masters Degree in Planning and Community Development.
College of Design and Planning University of Colorado at Denver


PREFACE
Until the last decade, efforts to meet urban needs and solve complex urban problems have largely ignored self-help improvement approaches. All too often, government led the way in developing and fostering revitalization programs. The consequence has been one of fostering dependence. Most revitalization efforts have failed to develop the human potential in our nei ghborhoods.
Revitalization is defined as the rebirth of inner-city neighborhoods as a good place to live, work, shop, and spend leisure time. If this is to occur successfully, one must believe in the notion that people know what is best for them; that a neighborhood is the best judge of its own interests. Revitalization must be done with people, not for them.
The author believes that people have the inherent ability to solve many neighborhood problems collectively. For this reason the Primer is intended to aid in the effort of fostering more self-help initiatives at the neighborhood level. Its development grew out of the author's frustration of being unable to locate suitable literature on neighborhood commercial revitalization to assist in merchant-initiated projects. In dealing with merchants, most literature was either too short to convey the breadth of activity and energy needed or too long for any merchant to sit down and read. The need for a Primer arose out of* this experience. An oral presentation on neighborhood business revitalization was not sufficient to enable merchants to fully understand the complete process or commitment needed. Many wanted something more specific to read and reflect on before deciding whether or not to participate in a revitalization effort.
The method of putting together the Primer involved researching existing case studies on successful projects and reading literature, generally geared
I


toward downtown and shopping center development. What became obvious is that neighborhood commercial revitalization does work in certain settings and there are common elements for each success. Part of the Primer is also based on the author's own experience of working with merchant-initiated projects in Denver. These were mainly small, one or two block, neighborhood-oriented commercial areas. Each experienced moderate success with the implementation of various components of a neighborhood commercial revitalization program.
The Primer is primarily written for the merchant or neighborhood leader audience, though professionals may find it useful. It is hoped that neighborhood-based organizations will use the Primer to encourage business communities to organize and improve their business districts. It can also serve as a training manual or guide for various groups.
The author is grateful to all whose efforts contributed to make the Primer possible. First and foremost to Professor Joni Jones and T. Michael Smith of the Center for Community Development and Design for their constructive insight and patience in waiting for its completion. To other staff of CCDD goes my heartfelt thanks. Special thanks to Cathy Wilson. Her typing assistance warrants the highest praise.
The Primer is seen as an evolving document, one that will be improved over time to reflect new methodologies, changes in consumer preference and business techniques. In this regard, the author encourages comments and constructive criticism. Any correnspondence may be addressed to: Center for Community Development and Design, University of Colorado at Denver, 1100 Fourteenth Street, Denver, Colorado 80202.
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TABLE OF CONTENTS
Abstract Title Page Preface
I. INTRODUCTION................................................... 1
• Introduction
• Understanding a Few Terms
« What is Neighborhood Commercial Revitalization
• Why Undertake Neighborhood Commercial Revitalization
• Purpose of the Primer
• How the Primer is Organized
II. PROBLEMS AND DECLINE OF NEIGHBORHOOD COMMERCIAL CENTERS........12
• Introduction
• Why They Have Declined
• Problems and Perceptions
III. LEARNING FROM THE SHOPPING CENTER..............................20
• Introduction
• Organization
• Image
IV. ORGANIZING FOR IMPROVEMENT.....................................25
• Introduction
• Merchants' Association
V. PLANNING THE REVITALIZATION PROCESS............................32
VI. ASSESSING REVITALIZATION POTENTIAL.............................40
• Introduction
• Trade Area Study
t Survey of Merchants/Bui1 ding Owners • Visual Analysis
VII. DESIGN FACTORS..................................................50
• Introduction
• Design Plan
» Building Improvement Options
• Streetscape Design 9 Maintenance Plan


VIII. BUSINESS DEVELOPMENT
• Introduction
• Development Strategies
IX. PROMOTION.................................
• Introduction
• How to Start
• Steps in Developing a Promotional Plan 9 Some Ideas to Consider
X. FINANCING.....................................
• Introduction
• Financing Sources for Business Improvements
• Financing Sources for Public Improvements
XI. CONCLUSION: INGREDIENTS FOR SUCCESS..............
XII. APPENDIX
• Glossary of Terms
• Survey Development and Methodology
• Sample Surveys
• Tenants Found in Neighborhood Shopping Centers
• Trade Areas
• Per Capita Retail Expenditures
• Consumer Expenditures
• Business Plan Outline
• Pro Forma Analysis Outline
• Business Zoning Information


INTRODUCTION


Just as neighborhoods have played an important role in the vitality of cities, so have neighborhood commercial districts played a similar role in the well-being of neighborhoods. It was the corner grocery store, whose proprietor extended informal credit and acted as the neighborhood ombudsman that made these small, yet vital commercial areas the focal points of many urban neighborhoods. However, over the years a variety of social and economic forces has reduced the ability of neighborhood shopping districts to remain competitive and healthy. Vacant storefronts, dilapidated buildings, insufficient parking, frequent turnover of businesses and ownership, visual clutter and trash are symbolic of the problems many neighborhood commercial districts face today.
Many urban commercial areas have declines while at the same time the shopping mall ascended. Malls are successful because they offer free parking, good maintenance, safer indoor shopping, and coordinated activities for promotion and management that works hard to retain a compatible balance of shops to keep shoppers in their center longer. The retailing principles are well tested and the system works very well.
Small, urban commercial business districts are different. However, some of the principles of a successful shopping center can be adapted for use on commercial strips. For instance, a merchants association can replace a single manager and operate more democratically to coordinate common activities, such as advertising and maintenance. It can also give strong direction or advice to property owners on the appropriate mix of shops to collectively enhance the commercial area.
Remember, a neighborhood commercial district has advantages. It is much closer to the consumer than suburban shopping malls. It has a warm,
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small scale character in its buildings, though in most cases they need improvement; it is on the cutting edge of our time to improve what we already have, to revitalize our neighborhoods, to save energy by shopping close to home.
What are the alternatives for urban commercial districts? What makes for a thriving business environment? What can be done to improve its image, competitive advantage, and break the disinvestment cycle of the urban commercial di stri ct?
There are no simple answers to these questions. No easy solutions or specific methods will insure instant success. Yet most will agree that something must be done.
Across the country today, many communities are reaping the rewards of rehabilitated and revitalized business districts. Obviously, many factors are responsible for these success stories. Revitalization experiences indicate that an urban retail market does exist, albeit not as strong as it once was.
The key, in many instances, has been the neighborhood commercial district's ability to adapt to a declining and/or changing market and capitalizing on its assets. The adoption of shopping center management and retailing principals and improved physical appearance are common and necessary basic ingredients for success. Neighborhood commercial revitalization is possible, but only if property owners, merchants and the neighborhood are willing to work together to improve what is collectively theirs: their public and business image.
UNDERSTANDING A FEW TERMS
To fully understand neighborhood commercial revitalization, clarification of terms is needed to distinguish the neighborhood commercial district from shopping centers. Terms are often used rather loosely, but the Urban Land
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Institute has standardized those terms which will be used through the primer.
The term shopping center refers to: a group of architecturally unified commercial establishments built on a site which is planned, developed, owned, and managed as an operating unit related in its location, size, and type of shops to the trade area that the unit serves. The unit provides on-site parking in definite relationship to the types and total size of the stores.
The above definition distinguishes this land use and building type from the shopping district. A shopping district is a miscellaneous collection of individual stores which stand on separate lot parcels along streets and highways or which are clustered as a concentrated business district, with or without incidental off-street parking. For our purposes here, the definition of a neighborhood business district is one of a shopping district that provides for the sale of convenience goods and services (food, drugs, sundries, and barber/beauty shops, etc.) which meet the daily needs of an immediate neighborhood trade area. The unplanned nature of the district also distinguishes it from the neighborhood shopping center as explained below.
Over the years, the shopping center has evolved into three distinct types with the major tenant classification and geographic boundaries from which the center draws customers determining the type rather than location, size or some other variable. The three types are neighborhood, community, and regional centers.
The neighborhood or convenience shopping center is the same as a
neighborhood shopping district except that it is generally anchored by a supermarket as its principal tenant. The neighborhood center is the smallest type of shopping center with typical gross leasable area of about 50,000 square feet and normally serves a trade area population of 2,500 to 40,000 people within a 6-minute driving radius.
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The community shopping center is built around a junior department store or variety store as the major tenant, in addition to a supermarket in some cases. The community center typically has a gross leasable area of about 150,000 square feet, with some ranging as high as 300,000 square feet. It normally serves a trade area population of 40,000 to 150,000 people. In some instances, a community center may have a strong specialty or discount store as an anchor tenant, but not a full-line department store.
The regional shopping center provides shopping goods, general merchandise, apparel, furniture and home furnishings in full depth and variety. The major tenant is a full-line department store. Super-regional centers normally have 2 to 3 full-line department stores. Typical gross leasable area is 400,000 square feet, with many reaching 1,000,000 square feet. The normal design uses the pedestrian mall, either open or closed,as a connector between the major anchor stores. The trade area ranges from 10 to 15 miles or more and serves some 150,000 or more people.
WHAT IS NEIGHBORHOOD COMMERCIAL REVITALIZATION
Neighborhood commercial revitalization is commonly defined as the physical upgrading of and financial investment in older commercial districts of inner-city neighborhoods. This process can involve a variety of techniques, including the rehabilitation of existing buildings, construction of new commercial facilities, "public works" of new lighting, redesigned streetscape and facade renovations. Commercial revitalization also implies growth, progress, and the infusion of new activities into stagnant or declining commercial districts which are no longer attractive to the investor or shopper alike. Typically, revitalization involves stopping a disinvestment cycle. A new climate is established whereby investment occurs to remodel or rebuild a portion of a
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neighborhood business sector to accommodate more profitable and expanded retail activities.
The neighborhood commercial revitalization process is designed to capitalize on the inherent assets of a business district and replicate the strengths of their main competition: the suburban shopping center.
By utilizing shopping center concepts, neighborhood commercial revitalization becomes a comprehensive redevelopment program of management, promotion and marketing, public and private physical improvements, design standards and financing. From our point of view, it is a voluntary, self-help development process by which retail merchants act as their developer. ORGANIZATION,
IMAGE, and PEOPLE are the three key words which the revitalization process is built around to improve a business district's economic position.
For our purposes here, neighborhood commercial revitalization is intended to provide a redevelopment framework for small commercial areas of limited size which provide useful goods and services to a surrounding inner-city neighborhood. In geographic terms, "merchants as their own developer" is a factor that limits the scope. Generally, a voluntary, self-help process should be limited to one or two blocks of commercial activity.
The rationale is that to attract shoppers and/or new businesses to neighborhood business districts, they must be able to convey the image of vitality, health, and well-being.
Put simply, neighborhood commercial revitalization is a six point program of
• Organization and Management
• Assessing and Planning Revitalization Potential
• Design Factors
• Business Development
• Promotion and Marketing
• Financing Improvements
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WHY UNDERTAKE NEIGHBORHOOD COMMERCIAL REVITALIZATION
Variety and quality in goods and services, convenient location, competitive pricing and adequate parking all play a major role in the marketing success of any commercial district or shopping center. Appearance is also an important factor. The appearance of individual buildings, storefronts , signs, alleys, window displays, etc. establishes the visual character and shopper's perception of the business district as well as the stores within. Presenting an attractive and progressive image is simply good business.
Generally, shoppers use price and the visual senses to determine where to shop. To attract more and better business, an improved image is a necessary factor. Commercial revitalization does not occur overnight, though it might be argued that change will create some new or instant interest. Instead, attitudes and shopping patterns change slowly. Attracting more shoppers requires more than new storefronts or signs. It requires the continued building of an image of growth and vitality. Once growth has occurred, it must be fueled with continued activity which further inspires confidence that capital and labor invested is safe and profitable.
The first order of business for any merchant is not tending the store, but attending to the customer and trying to attract more of them. Successful retailing is built around a customer-oriented attitude. This attitude does not mean simply trying to have what the shopper wants in terms of goods and services, but extends beyond to a clean and attractive setting, creating an attractive and fun shopping environment, and making goods and services available at hours convenient to the customer and so on. To remain competitive and a viable alternative to shopping centers or downtown, neighborhood commercial districts must adapt and become once again the focal point of nei ghborhoods.
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Over the past decade, revitalization of urban neighborhoods has become the cornerstone of rebuilding the economy of many American cities. Commercial development, until four years ago, was one of the last aspects considered in a neighborhood revitalization process. Upgrading urban housing and solving complex social problems were tackled first. There is now a growing concern that business revitalization must take place if cities are to remain viable places to work and shop as well as to live and spend leisure time. Commercial revitalization should be undertaken cautiously. Its success, in many ways, is dependent on overall neighborhood revitalization. Clearly, neighborhood commercial revitalization is more acceptable in healthy neighborhoods. Business district merchants and property owners must know the surrounding community to determine whether or not a climate of revitalization is occurring. This climate is manifested through housing rehabilitation activities, increasing income level and other signs of physical and economic renewal.
PURPOSE OF THE PRIMER
It is not the purpose of this primer to provide all the answers to every question on how to successfully undertake a neighborhood commercial revitalization effort. Instead, the primer provides a view, albeit brief, of neighborhood commercial revitalization - as it relates to and can be accomplished on a voluntary, self-help basis by an organized merchant group alone or in conjunction with a neighborhood-based development organization and association. Its intent is to describe some of the tools and processes available for this purpose.
What is most important is that the reader understand that neighborhood commercial revitalization is one component of neighborhood redevelopment. Neighborhoods must utilize comprehensive and integrated efforts if they are
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to remain healthy and viable places to live. Housing and other socio-economic problems must also be addressed. A growing and healthy trade area can only complement a neighborhood business revitalization process.
The information about neighborhood business revitalization will be practical and in some cases, useful to anyone interested in the subject.
It utilizes more of a "how to" than "why" approach; it assumes that the reader is a nonpractitioner and is in the process of determining whether or not to collectively undertake a neighborhood commercial revitalization process. In this regard, the primer provides helpful guidelines within the framework of decision making. The point is for commercial districts to start. The neighborhood commercial revitalization process proposed herein provides merchants and property owners with some tools to properly select their own starting point given a commercial district's current situation and future pians.
HOW THE PRIMER IS ORGANIZED
To understand commercial revitalization is to attempt to bring a degree of order to the many inherent factors of economic development in a retailing setting. The individual decisions of consumers, merchants, investors, and governments have collectively determined the health or decline of neighborhood commercial areas. It is, therefore, not the intention of this primer to spell out a precise order or formula for success. Instead, the organization provides an overview of each factor comprising a commercial revitalization process. It is assumed that the reader will realize that each section is interrelated and interdependent on one another if revitalization is to occur.
Section II identifies the socio-economic forces which caused the growth of suburban shopping centers and the subsequent decline of neighborhood commercial districts. In Section III, the reader will find a discussion on
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why these shopping centers are successful. The section illustrates the management and retailing techniques which neighborhood commercial districts must adapt and/or adopt for their own use if they are to remain an economic enti ty.
Section IV presents the organizational framework by which commercial districts can come together to undertake a revitalization process. The reader will be led through some of the organization steps thought to be necessary to establish a volunteer and representative organization.
Section V discusses the planning aspects of the revitalization process. Combined with Section IV, these sections should provide the reader with an understanding of the activities, time and energy it will take to successfully complete a commercial revitalization project.
Sections VI through X outline the basic "nuts and bolts" of the commercial revitalization program. Section VI presents planning tools, by which to evaluate a commercial district's potential for successful revitalization. Section VII suggests design solutions and guidelines for "streetscaping" and storefront improvements. Helpful design hints are provided to assist merchants in determing "good" design. Business development strategies are discussed in Section VIII. Section IX provides an overview on how to develop promotional and/or other marketing events. Section X discusses sources for small business finance and how to implement public improvement using various financing mechanisms.
Section XI includes a series of factors that are thought to be necessary to neighborhood commercial revitalization to work on a particular commercial district. The intent is to outline some of the successful parameters by which to evaluate a commercial district's potential for revitalization.
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In the Appendix, the reader will find useful and specific information on a variety of topics which were mentioned, but not included, in Sections.
These information sheets, sample surveys, etc. are intended to provide examples only. The reader will also find a bibliography at the end of each section. They provided the basis for each chapter and should be sought for additional study to refine the work activity of each section.
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BIBLIOGRAPHY
Main Street Manual. Piedmont Environmental Council; Warrenton, VA (1978).
(Excellent booklet on revitalizing small business district using historic preservation techniques.)
"Conserve Neighborhoods: Special Issue on Commercial Revitalization, No.7",
National Trust for Historic Preservation; Washington, D.C. (1979).
(Excellent hand-out on the conservation approach to commercial revi tali zati on.)
The Downtown Improvement Manual. Emanuel Berk; American Planning
Association; Chicago, IL (1 976).
(A comprehensive reference manual on the various elements of downtown revitalization.)
Shopping Center Development Handbook. J. Russ McKeever and Nathaniel M. Griffin
Urban Land Institute; Washington, D.C. (1977).
(Excellent general purpose book covering all aspects of shopping center development and operation.)
Neighborhoods in the Urban Economy. Benjamin Goldstein and Ross Davis;
Lexington Books; Lexington, MA (1977).
(Good book dealing with all aspects of neighborhood commercial revitalization.)
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m
a


DECLINE & PROBLEMS


A city is a composite of neighborhoods. Defining just exactly what a neighborhood is has long been a debatable and complex issue. Geographic terms, distinctive housing types, ethnic similarities or landmarks have all been used to delineate a neighborhood and its boundaries. But, more than anything, a "neighborhood" is probably a perception about where and how people live and among whom. Clearly, all agree they are the building blocks of cities. They are a physical reflection of a city's health and change patterns. Within a neighborhood itself, commercial areas are its physical and social barometer.
Historically, neighborhood commercial areas served an important social and economic function. In a less mobile society, they were places where neighbors met and socialized, purchased goods and services and sought employment in some cases. The commercial areas mirrored the health or decline of the neighborhood over time. For the most part, using the adage "as the neighborhood goes, so goes its shopping area" is appropriate to understand why commercial districts have declined in urban areas. Change is, however, by no means a bad thing. Change can be good when it means better housing, more jobs, safer community, etc. What is important to understand about neighborhood decline or change is that a neighborhood and its commercial areas do not react independently. Problems of one affects the other. This section proposes a generalized theory of why commercial districts declined in inner-city neighborhoods. It is essentially a story of neighborhood decline that occurred gradually over time.
WHY THEY DECLINED
Over the years, a wide range of social and economic forces has reduced the ability of neighborhood commercial areas to remain viable. Like with most
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change processes, a sequence of events led to the gradual decline of the viability of inner-city neighborhoods to support its commercial activity.
The scenario generally begins with suburbanization, the shift of population from city to the suburbs after World War II. This population shift was primarily caused by pent up housing demand, financial assistance given by the federal government, and the availability of new housing outside of core cities. The ability to escape from "city" problems such as overcrowded schools and racial changes in neighborhoods was very attractive to the white middle class. The in-migration of racial minorities to inner-city neighborhoods coupled with pro-suburban growth policies of the federal government probably fueld this shift to the suburbs. The personal automobile, inter-state highway system and the beginnings of public mass transportation provided the means for the shi ft.
Suburbanization opened up innumerable new retail and service markets.
It not only scattered population, but all components of the city, including places of business and manufacturing, recreation, etc. What became clear was that the new suburbanites did not return to their former neighborhoods to shop. Instead, the retail industry catalyzed the creation of the shopping center based on accessibility to the automobile, one-stop shopping for a wide range of consumer goods and services and protection from inclement weather through design features. These shopping centers eventually became a way of life not only for suburban residents but for people from city neighborhoods who began to find it convenient and enjoyable to do all their shopping there. The immediate impact was the decline of the Central Business District. As "Downtown" deteriorated with a subsequent loss of tax revenues, public officials injected massive public funds and tax breaks to revive the deteriorating Central Business
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District. It was an attempt to make the Central Business District competitive with suburban shopping malls. In their attempt to save the Central Business District, neighborhood commercial areas were ignored by public officials and neighborhood residents who were shopping in the suburban malls.
As the more affluent urban population shifted to the suburbs, the poor' and racial minorities moved into inner-city neighborhoods. The economic result was a decrease in the level of disposable income. Core cities became a symbol of poverty, crime, family disorganization, and juvenile delinquency. In short, the social and economic fabric of inner-city neighborhoods changed. This caused the original merchants to simply close shop or follow their more affluent customers to the suburbs. The large food or other retail chain who anchored many older commercial areas frequently decided to follow the new markets. Neighborhood commercial districts were no longer characterized by businesses owned and operated by local residents. The social aspects of doing business in a neighborhood was no longer important. It became a matter of business survival where lower quality of merchandise and marginal profits were the rule rather than the exception.
In many cities, urban renewal and model city-type programs, while well meaning, destroyed neighborhoods. Many were cut in half by super highways, often cutting off traditional social and shopping patterns. New construction, if implemented at all, simply created a new, less cohesive social fabric that did not reflect the social values and customs of the old neighborhood. This furthered the flight to the sururbs on the part of the middle-class.
A vicious cycle of disinvestment became the result. Disinvestment is a process by which financial institutions and private investors make a conscious decision not to invest in an area. One of the most important factors contributing to disinvestment in neighborhood commercial areas was the
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perception of crime in commercial districts on the part of residents and potential shoppers from outside the neighborhood. This perception of crime is often just as important a problem as the actual occurrence of crime. Neighborhoods undergoing a population shift become places where people saw one another as "strangers". As fewer people with similar backgrounds lived in city neighborhoods, people became suspicious and afraid. The lack of human traffic on neighborhood streets and in stores was the outcome and caused the perception of crime to emerge.
As fewer neighborhood residents shopped at neighborhood stores, the opportunity to rob or burglarize a store; to shoplift; or simply to harass the merchants becomes greater. In most instances, crime increased. As crime -real or perceived - became a factor, the availability of property and liability insurance became another problem. The cost, if available at all, of insurance became prohibitive for small merchants. This further fueled closure, thus contributing to the vacancy rate and, in turn, the perception of the crime.
Outmigration, construction of shopping centers, weakened neighborhood economic base, the perception of crime and the related difficulty of obtaining insurance have had individually and collectively negative affects on neighborhood commercial districts. The result of disinvestment provided the fatal blow to many areas. Financial and government institutions simply ignored the older commercial areas. Loans often needed by the small merchant were unobtainable.
The problem was compounded if the store was in a minority neighborhood or minority owned. This was not unique to commercial areas alone. Disinvestment often^occurred simultaneously in residential areas as well. Geographic areas were "red-lined" and written off by banks and savings and loan institutions. Public and private confidence to reverse the cycle of deterioration was
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non-existent. Consequently, commercial abandonment continued to occur. Neighborhood commercial areas, thus, became characterized by dilapidated store-fronts, boarded-up windows, unattractive signs, littered streets and
other blighted conditions.
THE MORTALITY OF SMALL BUSINESS * •
As a result of the sequence of events, most neighborhood commercial districts are unable to attract enough customers to support a healthy business community. Aside from social or economic forces beyond the control of an individual business person, many small business owners do not possess the required money and skills. Entrepreneurship is a difficult career path.
The typical firm does not survive more than two years. Among the primary reasons for failure are the following:
• Poor location was chosen
• Disregard of competition
• Too little money (undercapitalization)
• Lack of general management know-how.
Conversely, the businesses which survive and succeed also show certain characteristics. These include:
• Persistence and preparation. The successful business persons realize that they would not achieve their goals and profits immediately and are prepared, both psychologically and financially, to endure a year
or more of losses.
« Ownership experience. Through previous experience in owning their own business, many successful owners had learned about the problems of starting a new venture, and acquired the skills needed to operate one.
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t Sufficient money. Sufficient capital is required to begin the business on a firm footing and to survive the start-up period before sales pick up. This money often comes from personal savings.
a General managerial know-how. This involves having knowledge and ability in locating the business, sales, marketing, control and planning in order to avoid the problems which cause failure.
PROBLEMS AND PERCEPTIONS •
The major problem facing neighborhood commercial districts is the continuing trend on the part of the consumers to do their buying at shopping centers. The appeal of shopping malls to the consumer is around their convenience ("one-stop shopping"), safety ("under one roof"), accessibility (free and adequate parking), and fun and festive atmosphere. Neighborhood commercial areas must seek creative methods of addressing this established trend. Some of the problems common to most neighborhood commercial districts with regard to undertaking revitalization include:
• Merchants have not learned to work together;
• Most have a defeatist attitude about the business district.
• Merchants do not realize that to compete they must give good service and have employees that make a customer feel that he/she is the most important person to the business;
• Most have constant sales and poor inventory;
• No uniform store hours, which is often confusing to the public;
• Merchants generally do not have what the people want;
• Lack of evening and weekend hours;
• Lack of coordination of advertising and promotional efforts.
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Another problem on some deteriorating commercial areas is the lack of adequate parking. In a day of shopping centers, fast-paced life style and concern for personal safety, parking facilities must meet at least four criteria to be termed "adequate". First, parking must be accessible. If parking is not close enough to the stores and shops, business will be lost.
In addition, parking must be large enough to accommodate the quantity of customers needed to make the commercial area economically profitable.
Third, the parking must be safe. This means good lighting and proximity to stores. Finally, and most important, the parking must be free. All shopping centers provide free parking. If the commercial areas in the city do less, they do so at their own peril.
In many ways, the primary problem on neighborhood commercial areas is attitudinal. Reversal of the patterns of disinvestment must begin with dealing with the fears and questions of merchants. The first step is for public and private sectors to begin building a sense of confidence in the future of neighborhood commercial activity. The accomplishment of small projects, such as co-op advertising, developing common store hours, etc., can make a positive contribution for merchants who are skeptical of the viability of their area.
The sense of competition among neighborhoods and between neighborhoods and the downtown business district may be another problem that must be overcome.
Every business is faced with competition no matter their location. What is occurring today is competition among various commercial areas for revitalization in order to recapture a market that was once theirs. This is especially counterproductive when neighborhood commercial areas compete for scarce public funds to aid in public improvements. There is also a trend to revitalize the older, in-city shopping centers. They are generally adding space to compete more effectively with their cousins, the suburban malls.
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BIBLIOGRAPHY
The First Two Years: Small Firm Growth and Survival Problems. Kurk B. Mayer
and Sidney Goldstein; Small Business Administration; Washington, D.C. (1961). (Excellent little book on small business problems.)
Neighborhood Business Revitalization. The National Development Council; Washington, D.C. (1978).
(Excellent overview of why neighborhood business revitalization is needed.)
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LEARNING FROM SHOPPING CENTERS


There are two key words that serve to summarize the competitive advantage of shopping centers versus downtown or neighborhood commercial districts. They are: ORGANIZATION and IMAGE. While shopping centers were designed for a single purpose, neighborhood commercial districts can nevertheless learn from their successful retailing and management methods. The key is for commercial districts to adapt the highly integrated organizational style of the shopping center. It is a formidable task because shopping centers use legal agreements to institute their organizational framework, while neighborhood commercial districts must rely on voluntary commitments. To survive, neighborhood commercial districts are forced to organize and learn to compete as a whole, rather than a collection of diverse interests and retailing methods.
ORGANIZATION
The shopping center is a pre-designed promotional unit with professional management. Its sole purpose is to sell. It provides a cohesive unit which is centrally organized and administered. There is, in most cases, a full-time staff to deal with recruitment and leasing, tenant mix, advertising and promotion and store design. They are generally owned by a development corporation which also owns other investments. Developers have the experience, connections and expertise necessary to finance and operate these large-scale retail operations.
Purposeful organization is the key element in the formula for success in a shopping center. Primary among a shopping center's distinctive organization is its centralized management. The single purpose of managment is to increase sales for store owners and shopping center owners alike. In the shopping center, each store owner's lease contains binding agreements requiring the merchant to follow explicit design standards in the finish of interior space and signage, to conform to the established hours of operation for the center, to participate in the center's joint advertising campaigns and major promotions, to join and
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pay dues to the shopping center's merchants' association, and to pay for regular maintenance of the shopping center's public spaces. Failure to live up to the shopping center's requirements can be ground for eviction. The
utilization of centralized management and legal mechanisms for funding a variety of programs designed to increase consumer traffic insures that store owners and shopping center owners are partners in creating the strongest economic result.
Neighborhood merchants and property owners must join together to utilize and adapt the best of the management tools of the shopping center. The four major elements of a management program for the shopping centers include:
1. Advertising and Promotions - "Increasing sales" is by far the most important part of the management program. Shopping centers typically specify an annual assessment in a lease agreement for advertising and promotions.
An advertising agency or specialized staff are retained to develop a sales program, with six to thirteen sales events scheduled on the average. The essence of sale events is good value.
Promotions are developed to expose and present the shopping center to the consumer. Marketing the shopping center involves developing a cohesive image of a fun and festive place to shop. Promotions are designed to not only draw people, but to hold them in one location and longer.
2. Community Relations - In addition to sales, shopping centers also foster good community relations by cooperating with a variety of community groups who wish to sponsor activities in the shopping center. These include school art exhibits, festivals, arts and crafts shows, health fairs, etc. These events cost the shopping centers very little money. They are often newsworthy where free publicity is obtained. The primary purpose is to bring more people to the centers.
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3. Sanitation, Security and Maintenance - Sanitation, security and maintenance are generally funded through a leasing agreement. A shopping center's general appearance is geared around a safe and pleasant shopping environment. Successful shopping centers share a characteristic of commercial districts
of yesteryear. Its function is not simply a place to shop, but to serve as a social and recreation amenity for the community as well. Shopping centers work hard to maintain a safe and orderly image.
4. Business Development and Recruitment - Business development and recruitment is the single most important element in determining the financial success of the shopping center. Management's goal is to keep the stores one hundred percent occupied with the right mix of business and merchandise. Central to business development is keeping the stores and merchandise up
to date with consumer trends. Staff undertake market research to assure proper merchant mix, and have control through leases to maintain uniformity in operations.
The key, in most cases, is the recruitment of an anchor store or stores which become the main attraction to ensure consumer traffic. Once a "deal" is made with a key tenant, it generally becomes "follow-the-leader" time with other smaller retailers.
IMAGE
Image refers to the aim of marketing: consumer recognition and satisfaction.
The shopping center offers the aspect of "one-stop shopping", "free parking", "established hours of operation", "fun and festive atmosphere" as their image. While each individual store promotes or advertises itself, the shopping center also promotes itself as an entity. The shopping center is packaged as a whole to create a recognizable media image. Its logo, anchor stores, common
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design, and other pedestrian amenities are important for establishing easy recognition. As such, the shopping center has become an identifiable place. People know what to expect when they choose to shop there.
The shopping center has simply replaced the main street of yesteryear. It is a combination of festivity and shopping. The image of the shopping center is geared toward meeting more than the basic need of a shopping trip. The atmosphere is conducive for socializing, browsing, and comparing before making a purchase. It has become a multi-purpose designation. It offers a total shopping experience which the consumer is seeking, not just specific merchandi se.
The shopping center is aided in its image making by having a number of national chain stores within a center. These national chains have their own image and attraction for consumers. They have national and sophisticated merchandising strategies and management plans to keep abreast of consumer trends, thereby adding to the image of the shopping center.
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BIBLIOGRAPHY
Shopping Center Management: Principles and Practices. Horace Carpenter, Jr.; International Council of Shopping Centers; New York, NY (1974).
(Textbook of shopping centers.)
Shopping Center Development Handbook. J. Ross McKeever and Nathaniel M. Griffin The Urban Land Institute; Washington, D.C. (1978).
(Good general book on shopping centers.)
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ORGANIZING FOR IMPROVEMENT


For neighborhood commercial revitalization to work, a fundamental prerequisite is needed. There is a need for strong, local leadership. Someone must provide the initial creativity and energy to organize such an effort.
Aside from leadership, revitalization entails a cooperative effort and long-term commitment of a lot of different people.
The first stage in any revitalization effort is to establish a strong organizational base. In business revitalization, the cornerstone should be the merchants who stand to benefit the most from a revitalization effort. A revitalization effort should only proceed if a majority of merchants and/or property owners demonstrate a commitment to its development, implementation, and subsequent maintenance. Groups must determine from the onset whether or not they have the time and energy to see the process through to completion. Neighborhood support is also essential to broaden participation in project planning and acceptance of change.
The structure of an organization is not an issue. A business group or merchants association can be loosely defined. It is hoped that as an organization evolves and gains experience in tackling business district problems, it may take on a more permanent structure, such as a merchants association. A strong business district organization must be prepared to play the central role in the revitalization process and to perform a variety of functions which may include: Central Coordination - serve as a liaison to all other groups, merchants and property owners and coordinate entire revitalization process. The organization must assume the role of a developer to package the revitalization project.
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Generating Support - responsible for introducing and selling the revitalization concept to other merchants, property owners, community
and local government officials to reduce their apathy.
Representing Business District Interests - the city and other organizations need to know that merchants/property owners are involved and support the revitalization effort. A plan without community support will go nowhere.
The following are the beginning steps of a revitalization process and are intended as guides for groups to determine local interest in undertaking a revitalization effort. They are presented in a step-by-step sequence that is essentially chronological. Each group may want to look forward or backwards to adapt the information to best fit the situation.
GETTING STARTED
Determine interest in neighborhood commercial revitalization by talking with fellow merchants, property owners and neighborhood organization(s) that represent the neighborhood where the business district is located. As an initiator, the major task is to determine interest in participating in a revitalization effort. Do not make statements like "We are going to stop this rampant deteriorationetc., which tends to challenge people. Change can be uncomfortable, even to people who basically agree that a change is needed.
Merely state that you are interested in, and want their opinion on and their help and support for a revitalization effort. From the beginning, organizers should appoint someone to take minutes so that there will be a record of the group’s early days and initial decisions.
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rules, including election of officers, duties of officers, quorum, order of business and date for monthly meeting, membership dues assessment, appointment of committees, among others. The usual standing committees are finance, advertising, promotional events, maintenance, and business development.
The basis of assessment, other than a possible annual membership fee, for contribution to the cost of the association's activities, varies widely. The most equitable method is for all merchants to contribute to an activity fund, usually on the basis of each merchant's gross store area. Other methods include formulas based according to storefront footage occupied; individually negotiated assessment unrelated to the merchant's size or sale volume; and combinations of these and other methods. Method(s) to assess dues and fees for any association activity should be spelled out clearly in membership document. In effect, the merchant by joining agrees to abide by the association's purpose and guidelines.
A successful business district is a promoted one. Remember that a neighborhood commercial district's main competition are shopping centers that incorporate centralized management and promotion. To become competitive, neighborhood commercial districts must produce a satisfying image to the neighborhood consumer and foster teamwork among its merchants. A merchant's association can be the catalyst to develop a business environment that invites customers to come to the business district rather than just to one store.
It is simply good business, and one that mutually benefits all merchants.
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HOLDING FIRST MEETING
Organize a meeting of merchants, property owners, neighborhood leaders and other interested parties to cooperatively discuss undertaking a revitalization program. Meeting should result in a decision to proceed or not to undertake a revitalization effort. Topics to cover could include:
• pros and cons of business revitalization as way to solve problems, determination of time and energy available, and essentially to decide whether to proceed;
• organization structure and commitments to undertake revitalization;
• election/designation of "project leader";
t assignment of tasks, next meeting date;
• assessment of resources available for tasks, i.e. human and material.
SET GOALS, SECOND MEETING
Through the organizational process broadening participation and making a concerted effort to look as professional as possible should be an ongoing activity. Volunteer participation is more apt to be gained by a group if volunteers are confident the group is well-led and actually see that the group is doing something.
The second meeting should be held to discuss and analyze obvious commercial district problems and to set both program and organizational goals. Goal setting allows the group to draw plans according to the needs and desires of people involved. The group should come to a "consensus" on the revitalization effort. "Consensus" is used instead of "majority". Majority implies a numerical agreement, while consensus represents general agreement, compromise and understanding by all people involved. For commercial revitalization, the more people in agreement, the better chance of success. Topics to cover could include:
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- progress reports on previously assigned tasks;
- set goals for organization/revitalization effort;
- determine need for technical assistance:
- determine initial revenue need for planning and design;
- assign tasks.
New people should always be welcomed. Leadership should watch out for new faces, welcome them assertively, and briefly update them on accomplishments to date and assign them to do something.
DETERMINE PROJECT SCOPE
The key is to understand how a commercial district relates to and reflects the community around it. Let the natural facts of the setting be the guide as to where the boundary lines are drawn.
The boundaries should encompass a large area on both sides of the street to include the adjacent residential area directly affected by the commercial district's improvements. Reducing the impacts of improvements could occur by integrating design into residential area abutting the business district. This will win many neighborhood friends. Realistically, cost and available energy might be the limiting factor.
TECHNICAL ASSISTANCE
Many business groups may not have the funds to hire skilled or professional help; yet some parts of a revitalization effort could utilize professional help. The question is where do you turn.
Help Yourselves! The best place to turn is inward - to the members of your neighborhood. There are many people (businesspersons and residents) in your neighborhood who are able and willing to be of service to a neighborhood effort. The key to attracting a volunteering professional
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is to try not to ask for his/her special help until it is really needed and do not burden any individual too much.
Help from the outside! Maybe some of the help you require is not available in your neighborhood. Most cities have technical assistance organizations which can help in identifying other sources and/or professionals residing in your neighborhood.
Volunteering professionals work best on projects of a specific, short term nature. People are more apt to volunteer and feel a strong obligation to carry it out if they know exactly what is expected of them.
In hiring professional assistance, the business group should develop a scope of services document and meet with a number of technical assistance providers. Both parties should agree on the scope of the project, tasks to be undertaken, schedule and cost.
BROADENING SUPPORT * •
Broadening support for any revitalzation effort should be an ongoing activity, especially in the early stages. The key is for the business group to establish an impression of a dynamic and successful organization. One that is serious about successfully undertaking a revitalization effort. Some initial and easy projects to organize could include:
• write articles on the project for neighborhood newspaper;
• logo/name contest for business district;
• clean-up day for business district;
• neighborhood sales day, etc.
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MERCHANTS' ASSOIATION
The formation of a merchant's association can be the strongest single element in a successful commercial revitalization effort. The importance of getting merchants involved in commercial development or any other revitalization activity cannot be over-emphasized; unless they are involved, merchants will merely accept what is offered. A commercial business district must act as a unit in order to improve its image in the community. An association acts as a clearinghouse for suggestions, ideas and programming of promotional events, and it can also serve as a forum for handling complaints and differences of opinion.
Operation of an association should be left largely to the merchants. In some cases, owner participation is advantageous, especially so if he/she also operates a business within the commercial district. The merchants association can be charged with a wide range of activities - joint advertising of the business district, including the development of a business district name and logo and its use on advertising mastheads, letterheads, bill heads and statements; special business district promotion; seasonal events and decorations; enforcement of parking regulations, particularly those regarding employee parking; and business district news bulletins. Other activities which the association may want to handle could include: signage control, maintenance of common areas, trash collection, hours of operations, retailing mix, and cooperative insurance and securi ty.
In general, associations work through committees to carry out association activity. An association may be organized as a profit or non-profit corporation with charter and by-laws. Each has its own advantages. Regardless of the organizational structure, some sort of formalization is needed for it to become more effective over time. It is suggested that informal associations need to develop written guidelines or bylaws to set forth all pertinent information and
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BIBLIOGRAPHY
Action Now! A Citizen's Guide to Better Communities. Richard W. Poston; Southern Illinois Press, Carbondale, IL (1976)
(Book discusses how to generate neighborhood involvement in the community development process.)
Non-Profit Corporations, Organizations and Associations. Howard L. Oleck: Prentice-Hall, Englewood Cliffs, NJ (1 974).
(Comprehensive text that explains how to form a variety of non-profit organi zations.)
The Board of Pi rectors of Non-Profit Organizations. Karl Mathiasen III, Planning and Management Assistance Project, Washington, D.C. (1977). (Handy little booklet on the organizational duties and responsibilities of board members.)
Building an Effective Business Association for Commercial Revitalization. Philadelphia Citywide Development Corn., Philadelphia, PA (1979). (Primer for developing and operating a business association.)
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PLANNING THE REVITALIZATION PROCESS


Each commercial district faces its own unique set of problems and potential. The task within a revitalization process is to identify problems and needs, develop strategies for solving them, and work out a timetable or plan for addressing them. A business district that plans for the future can expect to realize many benefits. Undertaking a revitalization process should be an activity that brings people together. It creates a forum for merchants, owners and residents to express their concerns and to present their ideas for district improvement. The process provides a method for decision making and a rationale for future decisions.
Whatever the particular problems and needs a commercial district faces, merchants and owners should be aware that other groups have encountered the same issues, organized to solve them, and through their planning efforts, been successful in revitalizing their districts. The following revitalization process draws on experiences of others to help groups assess where to start and plan for the future. The steps are intended as a guide. They focus on the physical improvements of a business district. The procedures can also be followed to determine the problems and needs of other revitalization activities, such as promotion, financing, etc. It becomes a way of systematically undertaking problem solving. Remember, each commercial district is unique and may require variations on the,process described.
BASE DATA
Information gathering is a crucial step in any redevelopment process. Information is necessary to identify problems and develop ways to solve them. Business districts cannot determine where to start within a revitalization program unless problems and needs have been identified, analyzed and prioritized. In collecting data, the following steps should be kept in mind:
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1. Determine your information needs.
2. Locate tools and data sources.
3. Collect and analyze relevant data.
In commercial revitalization, a lot of practical information can be collected via observation. Visual analysis can provide information on the character of the district, questions of transportation, traffic, and pedestrian circulation and street uses, all of which must then be integrated with a revitalization scheme.
It is useful to break down information into several categories; groups may add depending on their circumstance.
• Circulation: Do people have easy access to the district? How do most shoppers arrive? Car, bus, walk, etc.
• Traffic: Check the volume of traffic and pedestrian. Find key generators of your shopping traffic. Is parking a problem?
• Uses of land: Study the buildings in your district. Evaluate their architectural style, scale and physical condition.
• Character: Does your district have a cultural, ethnic, aesthetic, and historical uniqueness? Capitalize on the district's assets. There are benefits to historic designation and preservation.
• Activities: What are the daytime and nighttime uses of the district? Activities will determine how people use your sidewalks. Note what people are doing and where.
• Site survey: Existing site drawing illustrating current conditions, problems and measurements. Map to provide a clear, in-depth understanding of the problem, especially with buildings and condition of public right-of-way. Good mapping can provide a quick way to assess need for improvements.
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• Business characteristics: Do stores have common opening and closing hours? How many stores have an advertising plan? Develop a profile
on stores located in the district. Determine common problems and operating styles.
• Consumer survey: Determine the shopping habits and attitudes of the district's trade area. Ask shoppers what they think about the district and kinds of improvements that would make them shop more
in the district.
Collecting data should not be restricted to your commercial district.
Visit other commercial districts that have undergone improvement to discern and catalog what does or does not work. This is especially helpful in determining a compatible mixture of stores. The key is to profit by other people's mistakes or successes.
There is no definite point where data collection ends and analysis begins.
It is helpful to make data analysis a separate process from data collection. Generally speaking, the product of this step should be a site drawing that illustrates existing problems, assets and measurements. Combined with other revitalization assessment data, this is a key tool for understanding the district's physical character, problems and potential.
CONCEPT DEVELOPMENT
Now that you are familiar with the commercial district through data collection and analysis, groups are prepared to focus on expressing the needs and desires of the district. This step allows the group to identify the answer to a basic question - what kind of improvements are necessary? Storefronts, streetscape, better retail mix, etc.? Concept development is a goal setting process which should provide a general idea of what the group wants to accomplish.
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Once a goal has been established, the group can then express their ideas on how to reach the goal. Example: if crime, real or perceived, is a problem in the commercial district, a street-related goal might be: To make the commercial district safer for shoppers. This goal may be reached by adding to the street - pedestrian lighting fixtures, moving bus stop to safer, more accessible location, better storefront lighting, more commong store hours, etc.
The major element to consider in concept development is image. Any planned physical or business improvements will alter the business district's existing image and appearance. It is important to reach a consensus.
Remember, merchants and property owners as well as adjacent residents will have to live with the alterations. Physical improvements should be closely related to the existing character of the buildings and surrounding neighborhood.
PLAN ALTERNATIVES
Developing several different revitalization schemes brings order to goals and how individual plans are related to the whole. Alternatives provide a framework to solve a problem in different ways. Each concept alternative should give general consideration to how the group thinks about their public right-of-way, building, advertising, etc. Alternatives can visually illustrate the impact of design, such as street furniture placement, consideration for maintenance, rough cost estimates, degree of construction difficulty to mention a few.
REVIEW AND EVALUATION
At this point the group is ready to derive the best solution from among revitalization alternatives, given available resources. The intent of the review and evaluation stage is to present alternatives in a suitable public forum to solicit impressions and feasibility input. The result may be new
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information/ideas which enable the group to refine alternatives into a final plan of action. It is a decision-making setting, one that leads to consensus on the best overall solution.
PLAN MAKING
Plan making represents the synthesis stage whereby alternatives come together to shape a solution for every part and component of a revitalization scheme. Integration of evaluation information is the key factor in determining design and other revitalization activities. The plan, whether design of storefronts, streetscape or promotional activities, should satisfy the requirements of three parties: the merchant group itself as the user, the adjacent neighborhood also as the user, and the law as stated in local codes.
Upon completion, most design plans should be reviewed by appropriate public work agencies. Their review and evaluation at this stage will reduce the amount of changes for design specification drawings.
SPECIFICATIONS AND COST ESTIMATES
Preparation of final design specifications and cost estimates is the major task at this stage. Bid estimates should be obtained on all design elements. The degree of design specifics for either storefronts or street-scape is dependent on requirements of obtaining contractor bids or pulling the necessary building permits. At a minimum, the specifications drawing should illustrate dimensions, measured location and placement of design elements of a streetscape and construction drawing(s) for storefront as the case may be.
IMPLEMENTATION
The group's next step is to develop a realistic implementation schedule and plan. By breaking a revitalization scheme into tasks, the group can get
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a fairly good idea of how long each activity will take and set a date for its completion assuming public or private financing. Utilizing tasks will also allow the group to refine its commitments, assign workload, identify possible problems and locate specific resources.
The key to implementation is selling a commercial district's revitalization plan to appropriate private and public financing sources. Grantsmanship might be required. A business district has three options for financing improvements-1) private financing, 2) public financing, and 3) a combination of public and private financing.
Evaluation and Follow-up
Evaluation should never be an afterthought, it should be consciously applied at the onset and throughout a revitalization process. Primary evaluation rests with determining whether or not more and better business has occurred. While this can be done informally, every activity should be assessed as to its effect on business.
A commercial district must stay on target and direct its limited resources and energy into the area where change is most needed. Adaptability and flexibility are possible only through evaluation.
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THE REVITALIZATION PROCESS
GETTING STARTED
PROGRAM ASSESSMENT PROGRAM DEVELOPMENT PROGRAM IMPLEMENTATION
establish a core group
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BIBLIOGRAPHY
Neighborhood Commercial Revitalization. Adrienne M. Levantino;
National Association of Housing and Redevelopment Officials, Washington, D.C. (1978).
(Book geared toward government officials involved in commercial revi tali zation.)
The Citizen's Guide to Planning. Herbert H. Smith; American Planning Assocation; Chicago, IL (1979).
(Helpful book provides a general background on the planning process for the non-professional.)
Neighborhoods: A Self-Help Sampler. U.S. Department of Housing and Urban Development; Washington, D.C. (1979).
(Handbook illustrating actual projects with step-by-step instructions on how to do them, includes a chapter on commercial revitalization.)
The Practice of Local Government Planning. International City Management Association; Washington, D.C. (1974)
(The "Bible" for planning professionals.)
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SECTION VI
ASSESSING REVITALIZATION POTENTIAL


Assessing a commercial area's potential for revitalization is the most critical phase of a neighborhood business revitalization process. In many ways, it is also the most technical and time consuming phase of the process. Problem identification and subsequent analysis is not easy as the root causes of deterioration are often complex and interrated with other forces outside the control of a neighborhood business organization. This section is intended to provide the reader with an overall view of some of the analytical tools available to identify development needs and opportunities within a neighborhood retailing area. In most cases, these studies are carried out by a technical consultant. However, it is our belief that neighborhood-based business organizations should be able to complete the studies successfully without hiring a professional. Some technical assistance may be needed, but groups should determine this need after reading some of the publications mentioned in the bibliography of this section. The bibliography contains information on self-help books that use step-by-step approaches and are written for neighbor-hood-based organizations.
TRADE AREA STUDY (SHOPPER SURVEY)
A trade area is the geographic area from which a business district draws its customers. In a trade area survey or market study, a shopper questionnaire is used to provide a business district with information about their customers, customer likes and dislikes of the business district, and what would encourage them to shop more. In a neighborhood setting, it is usual to consider the surrounding neighborhood as the primary trade area, unless the business district already caters to a much larger geographic market. The study's basic function is to provide information on estimating the size and boundaries of the local market area and obtain data on local shopping demand and patterns.
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Once this information has been analyzed, the characteristics of a trade area can, in turn, be used to assess potential consumer demand for existing and/or new goods and service in a commercial area. Generally, a shopper survey is developed to supply answers to the following:
1. What problems consumers perceive in the business district and what improvements they consider to be the most important;
2. What the general image of the business district is;
3. What are the shopper's spending habits and patterns are with
respect to the business district;
4. How often does the consumer shop and for what goods and services;
5. What influence media advertising has on their shopping decisions;
6. Whether existing store hours are compatible with their schedule;
7. What additional retailing outlets or services do they think the trade area needs;
8. What are the socio-economic characteristics of the consumer and his family;
9. Where do they shop regularly for a variety of goods and services;
10. What are their main considerations (price, convenience, quality,
etc.) when they purchase a particular product.
An information sheet on surveying is included in the Appendix, as well as a sample consumer survey. Shopper surveys are generally conducted on the street, in person with the aid of a one or two page interview form. A residential survey may, however, be more appropriate if a business district considers the surrounding neighborhood as its trade area. A survey of this type can be dropped off and picked up by volunteers and provide a representative sample of the trade area. The detail, sample size and cost will be factors in determining which type of surveying technique to undertake.
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Analysis of survey data should provide a set of information by which a business district can better understand itself and the market potential of its trade area. Some of the standard information obtained is:
Trade Area - Survey furnishes data on the geographic boundaries of the market area; the market area can be determined by plotting the addresses of those surveyed on the map. Determining the trade area should be done cautiously. In inner-city situations, many low-income areas are often underserved, and residents will travel surprising distances for quality and lower prices. Public transportation routes may also be a factor in determining the shape and size of trade areas.
Buying Power Estimate - Once a trade area has been mapped, other statistical sources can be used to estimate how much money residents could theoretically spend on specific goods and services. Estimates on family expenditures for various goods and services can be obtained from the U.S. Department of Labor. (See Appendix for information sheet.) Expenditure figures for various goods and services can then be multiplied by the total number of households in the trade area to obtain total buying power.
This total provides the basis for estimating potential buying power or market for the business district. The problem is to determine the business district's capture percentage of the market for various goods and services.
To determine sales potential or capture percentage, the following should be considered:
• Assess the competition: Examine the characteristics of nearby commercial areas to determine whether or not they are satisfying the local demand for certain goods and services.
• Assess the shopping habits of the trade area: Determining why and how often customers shop at a business district will provide clues to refine capture rate. Other socio-economic information,
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such as number of elderly, mobility, public housing, etc. is also useful.
• Merchants' feelings about market potential: In most cases determining market potential is a matter of judgment based on informal evaluation of facts and knowledge of the trade area. Merchants are the single best source and their judgment should be taken into account.
In general, market capture rates for convenience goods tend to be higher for neighborhood-oriented commercial areas. New and attractive facilities can change the rate upward. The key is to develop a set of conservative criteria when determining a business district's sales potential.
Retail Space Demand/Estimates - Determining how much retail space can be supported by the potential consumer demand of the trade area for the business district requires correlating sales volume with retail square footage estimates. The prime source for this information is the Urban Land Institute's Dollars and Cents of Shopping Centers. See Appendix for information sheet. Estimates of the amount of square footage of retail category that could be potentially supported by the trade area is found by dividing the estimated sale volume by the appropriate sales per square foot figure for retail category. Comparing potential with actual square footage of retail categories can provide an assessment of how much of the market has been saturated or could be considered as a potential for business expansion.
Because market studies and their analysis are based upon many subjective findings and judgments, there is potential for error. It is best to use conservative estimates which provide a good "rule of thumb" indicator of revitalization potential. The market or trade area study serves as the
-43-


starting point for creating a business development plan. The study is also an excellent tool for attracting new business. A good business person will be interested in the facts and figures which the study provides.
SURVEY OF MERCHANTS AND BUILDING OWNERS
This survey is designed to determine what local business people think about revitalization opportunities, assess their interest and capacity to participate in a revitalization effort and to obtain detailed information about their business. The survey should provide a clear indication of whether or not merchants and property owners will act collectively to improve the business district.
Merchants, as a group, have the best knowledge and "feel" for their business district and can provide valuable insights of what it will take to improve it. The focus should be on attitudes about local business problems and opportunities for improvement. A by-product is that the survey provides a way for business people to find out if their individual improvement plans will be complemented by the efforts of other businesses. It is important that businesses work together to promote compatible development and avoid haphazard changes.
The merchants survey can also be a valuable source of data about the number of employees, the amount of square footage in each building and sales volume of each business, etc. A sample survey questionnaire is included in the Appendix.
VISUAL ANALYSIS OF PHYSICAL CHARACTERISTICS
A deteriorating business district often goes unnoticed by people who use it. It seems as though once a person becomes accustomed to the fact that something is in need of repair, it can then be easily ignored. A business
-44-


person may not realize that continuing neglect of a business district's physical appearance can shape customer attitudes. For this reason, shopping centers make every effort to keep their facilities well maintained. Run-down storefronts and interiors, carelessly prepared window displays, and lack of parking are just a few of the physical factors that influence customer attitudes about shopping.
A visual analysis of a business district can quantify and define problem areas which might affect customer attitudes. In most cases, an outsider should undertake the analysis to assist the business community to "see" itself more objectively. A visual survey should be plotted on a series of maps or drawings. A composite slide show to illustrate positive and negative elements is another starting point for analysis. Items to be surveyed and analyzed include: Assessing the characteristics and condition of storefronts - Someone with a knowledge of architecture should determine whether or not the business district's storefront can or should be rehabilitated. Survey should focus on positive and negative points of buildings' architecture and condition. It should also note vacant storefronts, boarded-up windows, or other unsightly characteristics, and signs should be inspected for their aesthetic appeal and compatibility to others.
Assessing the need for public improvements - A civil engineer or landscape architect should inspect the sidewalks and street for safety hazards and determine the need and potential for streetscape improvement. Appraisal should note problem areas, such as broken sidewalks, curbs and gutters, and catalog existing streetscape layout. A rough cost estimate to bring the streetscape up to safety standards and better appearance to encourage more pedestrian use could also be provided.
-45-


Assessing how the streetscape works - Someone should catalog observations
of where people congregate, park, etc. and note other positive or negative activities occurring on the street.
Estimating the square footage of space devoted to different kinds of retailing activity - Square footage estimates can be obtained by asking merchants and/or property owners. Figures should be plotted on whatever drawings are used.
"TFUPfcntiES
-46-


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BIBLIOGRAPHY
Neighborhood Commercial Revitalization. National Council for Urban Economic Development; Washington, D.C. (1979).
(Excellent overview on the commercial revitalization process.)
Analyzing Neighborhood Retail Opportunities: A Guide for Carrying Out A Preliminary Market Study. Wim Wiewel and Robert Mier,
American Planning Association; Chicago, IL (1981).
(The best step-by-step booklet of the how-to variety.)
Dollars and Cents of Shopping Centers. The Urban Land Institute; Washington, D.C. (1978))
(Useful information on the receipts and operating expenses of a variety of stores in shopping center categories.)
-49-


SECTION VII
DESIGN IMPROVEMENTS


Shopping in America has become increasingly a recreational activity in which people shop, browse, eat, and relax. Suburban malls know this and nurture a recreational image through design features, store variety and special amenities. Good design, whether at a mall or neighborhood commercial district, is simply good business. Wei l*-desi gned and carefully maintained commercial districts improve the image of all the businesses within. It also offers the public an alternative shopping experience.
The key to "good design" is to capitalize on the commercial district's assets. Each district is unique, having its own set of architectural features, signs, window displays, graphics, color, etc. Bringing visual order to these physical elements without destroying the natural diversity that produces a variety and interest which malls cannot match should be among the goals of any revitalized commercial district.
In many ways, the implementation of a physical design plan is at the heart of any commercial revitalization effort. It provides a needed change to visibly alter the district's image of decline. Shoppers and investment respond to signs of positive activity. For this reason, physical imorovement is a good place to begin a commercial revitalization effort. Physical improvements work best when the approach is gradual so that individual efforts complement and compound on each other. Taken together, these small improvements can build the momentum for implementing other components of a commercial revitalization process.
Design can be divided into two broad sections: 1) the treatment of individual buildings and combinations of structures, 2) the furnishings on the street - the special public improvement amenities provided to create a pleasant and safe shopping environment. Design should be based on unity, but should not lead to a sterile sameness of all the buildings. Rather, unity
-50-


should come from a simple system of binding the individual parts into a larger composition with room for variety.
Improving a commercial district today will require care, planning and a cooperative effort to insure that independent improvements are compatible to make any measurable difference. This section is intended as a helpful guide to involve merchant leadership in the formulation of a design plan.
Design generally requires the services of an architect who can coordinate storefront and streetscape improvements with the merchants association.
DESIGN PLAN
Revitalization of any commercial area requires a sound design plan to combine public improvements, individual business rehabilitation and other physical changes in a complementary way. Many city programs have found it useful to not only develop an overall design plan for a retail area to be revitalized, but also to insist on mandatory standards to guarantee uniformity of design implementation. Cities have used a variety of incentives and sanctions to implement design plans. For our purposes here, design standards are not recommended because of their enforcement difficulty and potential hazard for causing disharmony among merchants and/or property owners. Instead, the formulation of an overaTl design plan is encouraged. If developed by a professional designer through the democratic participation of merchants, property owners and neighborhood residents, the plan, in effect, becomes a consensus from which to change the district's appearance and image over time. The key elements of a design plan are:
• bui1ding/storefront designs
• signage
• window treatments
• streetscape design
-51-


BUILDING IMPROVEMENT OPTIONS
Buildings, whether old or new, are one of the major characteristics of a commercial district. As such, they are important physical assets to the district and community as well. They are also a key component to any successful commercial revitalization effort. Their use and physical condition play a substantial role in the economic and visual well-being of a commercial district. Care should be taken to retain and enhance this asset. The more so given the fact that most older business districts were built in an era of human warmth and scale architecture. The following building improvement options offer points to consider when assessing how to begin thinking about design.
1. Preventative Maintenance and Upkeep - The best way to guard against the costly expense of major building repairs is to establish a maintenance program for both interior and exterior upkeep. Rehabilitation of maintained buildings often only requires cleaning and painting. Maintenance should be systematic, starting with the roof, windows and doors. Improvements here will not only help maintain the building but make the building more energy efficient.
2. Renovation and Rehabilitation - These are processes of returning a property to a state of utility through repair or alteration. Renovation generally means the upgrading of a building's exterior appearance while rehabilitation refers to repairing a building's interior and mechanical systems. Both make possible an efficient contemporary use while preserving those features of the property which are significant to its historical, architectural,
and cultural values.
3. Restoration - A process of accurately recovering the form and details of a property and its setting as it appeared at a particular period of time
-52-


by means of the removal of later work or by the replacement of missing earlier work. It does not mean that buildings must be preserved as museum pieces. Restoration is a practical approach which offers a way to retain a unique link with the past.
4. Recycling and Adaptive Reuse - This involves converting a building from its originally intended use. The building is given an entirely new use which is more productive and profitable.
TYPICAL STOREFRONT ELEMENTS
-54-


DESIGN HINTS TO CONSIDER
Storefront improvements are often the least expensive and simplest
elements in a comprehensive commercial revitalization design scheme. The key to private property improvemetns is to utilize existing building assets to the greatest advantage. Following are six basic guidelines to follow when considering facade/bui1ding improvements. They are, briefly:
1. Respect the basic form or architecture of the building. Simply, "form" describes the general shape of the building. Changes in form, past or planned, generally are not appropriate in that it fragments the facade and the visual unity of the building. Relate ground floors to upper levels.
2. Use the original materials whenever possible, or select new materials that are compatible with existing ones. Original materials should guide any additions. Avoid the introduction of imitations.
3. Use proportions that are compatible. The height and width of standard windows, in relationship to one another, establishes unity. Similarly,
specific dimensions that are repeated along the street provide a sense of order to the business district, inis is especially important with
windows, doors, and decorative elements.
4. Choose colors for the entire building facade as a single composition. Color can set the tone. They may be bright and playful or muted and restrained. Trim colors can contrast with background color to accentuate building details. Limit the number of colors. Use tones that relate well to prevailing colors on the street.
5. Maintain building decorations whenever possible. Decoration may include cornice moldings, brick patterns, carved or cast building ornaments as well as awnings and frames for doors and windows. These provide a sense of character and connection with the past. As building assets, they need to be carefully maintained.
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6. Install signs that are related to the rest of the facade. A commercial sign is an essential part of a facade renovation. The work invested in
a careful storefront improvement can be wasted if an inaopropriate sign is then mounted on the building. Signs should be compatible with the building in their location, proportion, materials, color, illumination and lettering.
WINDOW DISPLAYS
People walking down the street will get a good or bad impression of a business by looking through its windows. Therefore, it is important that window displays are attractive.
Displays are a functional extension of a store's interior display space. Quality display windows are essential to the storefront as an attractive sign; they help to not only advertise merchandise but can also serve as an exciting invitation to shoppers passing by. Some hints to improve window displays are as follows:
1. Define the buying audience. Gear the display to this group.
2. What do you sell? The diplay should indicate the merchandise being sold.
Let the product speak for itself. Use few words. Keep signs to a minimum.
Be selective in the number and variety of products to display.
3. Think of the window display as a large picture frame. The display should be composed as a picture. Color scheme is important. Limit the number of colors, as too many colors can be distracting. (Your merchandise might suggest a color scheme, as might the season of the year.)
4. Temporary window signs announcing a grand opening, a seasonal sale or special promotional event often become a necessary part of the window display. Keep the message content simple. As a general rule, temporary window signs should never occupy more than 15* of the total glass areas of any individual display window.
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5. Provisions for directional artificial illumination should be considered
essential for most store display windows. Display lighting should be controllable in intensity and flexible in placement to allow for special accent or highlighting of product displays.
6. An option is to use the store interior as a window display. This allows the passerby to look in and see the items in the store itself. In this case, the store's interior must be neat and attractive.
7. KEEP IT SIMPLE, BUT INTERESTING!
WINDOW ADS * •
Some simple guidelines are:
• Clean up windows.
• Remove expired advertisements.
• Remove unnecessary advertisements.
• Often ads placed in windows do nothing more than clutter the appearance of the storefront.
• Avoid large or repetitious advertising signs.
• Keep written information on window signs to a minimum.
• If ads are necessary in the window, an appropriate placement for them is at the bottom of the window (unless it extends to the floor)
or some other reasonable uniform area. Wherever you place this "ad strip" ensure that the store owner can see out and shoppers can see in. Talk with neighbors. If everyone places written material in this space it can help to unify the appearance of the block.
• If window display is attractive, use the 15" rule.
letter painted or placed on sipn


SIGNAGE
A store sign should complement the architectural elements of the storefront,
not obscure them. It is an important part of any store, because the sign identifies the business to the passerby. Signs can add to or detract from the visual harmony of the business district.
Signs should be tasteful to become an asset to the business district.
Signs serve the functions of informing, identifying, and creating visual harmony along a street. Signs that are too large or too small, or ones which are gaudy or extravagantly designed, or too many signs close together can detract from a business district.
Some useful guidelines to consider are:
• Have signage designed by a professional designer and use the best
sign painter you can find. Never have an amateur paint your shop sign.
t Signs applied to windows should not cover more than 25% of the glass in the window.
9 Lettering on signs should be simple and well proportioned. Faddish or complicated lettering forms should be avoided.
• Sign colors should be selected to harmonize with the predominant colors of the building and its neighbors.
• Signs may be incorporated into canopies or awnings.
• Signs projecting from the surface of a building should be proportional to the building to which they are attached.
9 Lighting of signs should be external. Subdued lighting which illuminates the sign and at least a portion of its host building is an attractive and sophisticated approach to lighting a sign.
• A sign should be placed so that it complements the architecture of the building and business it identifies. It should never obliterate the building's architectural features.
• Normally one sign per busines is sufficient.
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Pedestrian And Vehicular Signage
Icons" On Storefronts
Signs on Av^nings
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STREETSCAPE DESIGN
Another major element of any neighborhood commercial revitalization project is the various public improvements which complement and enhance the improvements made by businesses. These can include street repairs, new lighting fixtures, tree planting and other pedestrian amenities. The "streetscape" is a term referring to an area that is visible to a person walking or driving on a given city street. It defines the relationship of buildings, shapes, space and textures on the street, so that the sum of all these elements becomes more than the collection of the individual parts. Each amenity (illustrations) added to the street should encourage further pedestrian use. There are three general principles to follow in selecting design elements:
1. Choose materials that are sympathetic to the surrounding buildings.
Pay attention to color, texture and scale. Remember that most of the elements should blend with the street scene. Express the natural characteristics of the material whenever possible.
2. Coordinate street furniture and materials so that individual items appear as members of a family. Use standard dimensions, or modules, to simplify construction and to give a visual unity to the elements.
3. Place the furnishings where they are most needed. Where do people gather, and need places to sit and talk? Where do people wait for buses or rides? Choose locations on the sidewalk that will not obstruct movement. Notice if each location is in the sun or the shade and protected from winds. What would be most comfortable to you?
-60-


PI anters
The plant survival rate is highest when theyare planted directly into the soil. This is not always possible. Where it is not possible to plant directly into the soil, concrete or wooden planters may be used. Planters should be small so as not to impaed pedestrian traffic, yet heavy enough to prevent theft. They should also be similar for a unified appearance.
. . ----n -n ___P - -
Trash Containers
An attractive and litter-free block requires functional trash receptacles. These containers should have covered tops and sealed bottoms to keep contents dry and out of sight at all times. Simple design selections should be compatible with benches and other furnishings. Place containers at places where people linger, such as near benches, bus stops, etc.
Hinged-Door Top
Semi-Open Top
-51


Street Trees
Street trees can be excellent unifiers for a commercial strip, providing shade and scale for the pedestrian and softening effect on the harsh environment of concrete, asphalt and brick. They can form a visual sense of closure and psychological buffer from the street.
Select two or more species of trees and alternate their planting along the street.

Paving
Walkway paving of a distinct pattern can make a significant contribution to the neighborhood business district's unity and visual richness. Paving units should relate to building styles and materials. A simple pattern and common paver size are most effective. Brick paving is expensive. A compromise is to combine brick and concrete - using the brick to frame panels of concrete or to create a band to separate the sidewalk from the street and to designate a planting strip for trees.
STANDARD 4” x 8” PAVERS
ALTERNATE 8” x 8” PAVERS
RECOMMENDED 8" x 12” PAVERS
Window Boxes
Window boxes can be used to enhance the front of a building and provide additional color. They should be designed in two pieces: an outer shell, coordinated with color and architectural style of the building and color and material of other street furniture; and an inner pan to hold soil and plants. 3oxes should be attached directly to the building for safety_____________-____________


Hanging Baskets
Hanging baskets can provide color and interest to the street. They may be hung from street lamps.
Benches
Seating is especially important for pedestrian relaxation. Benches should be provided at widened walkways and in public spaces. They should be comfortable and durable. Benches should face the sidewalk, not the street, unless the street is particularly interesting.
Li gnting
Appropriate street lights can reinforce a pedestrian scale and an overall street unity and add a special night-time ambience and safety. Lighting does not necessarily have to be of the same style and vintage of buildings, but it should complement the business district. Set up a rhythm with the light fixtures, spacing them an equal distance apart.
Federal
Lantern
Williamsburg
Lantern
Georgian
Lantern
Single Cube


Bol1ards
The use of bollards (upright posts) to separate auto and pedestrian traffic is suggested where safety is a factor or where there is confusion
about auto access. Bollards can be of a very simple design, to complement the paving and buildings, or of a more period design - in cast iron - to emphasize a historic setting.
Ki osks
Kiosks are bulletin boards used for community announcements. Locate kiosks at major traffic poi nts.
“6 4.


(illustrative, not in scale)


MAINTENANCE PLAN
All materials wear out over time. The rate and degree of deterioration varies, but deterioration will occur. Given that fact, another conclusion follows: it is less expensive to maintain a building and/or public improvements consistently than allow them to deteriorate to a point where major investment is required. For this reason, maintenance should be treated as an equal part of the design plan. The selection of design elements should consider maintenance difficulty and/or whether or not merchants and property owners have the ability and time to undertake its routine maintenance.
There is nothing glamorous about maintenance. In most cases, maintenance responsibilities should be divided between public and private sectors. Regardless of who is responsible, a comprehensive plan is necessary to cover daily as well as long-term maintenance.
If a streetscape plan includes special items outside the city's usual maintenance tasks of trash removal and street clean-up, cities generally will not take on the additional tasks or costs. Items in this category could include trees, planters, sidewalk clean-up, trash removal from containers, etc.
Realistically, it is sometimes hard to find volunteers for maintenance work. Merchants might consider an "adoption" technique whereby each storeowner is assigned, responsible and held accountable for a specific area of the commercial district, including that area's trees, trash containers and so forth.
Be creative in addressing a commercial district's maintenance problems, but the approach selected should depend on the amount merchants can afford to contract out, the district's special circumstance, and volunteer commitment.
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At a minimum, a plan should be developed to handle one-time and daily
maintenance responsibilities. Daily maintenance involves the chores of the commercial district's up-keep. Seasonal planting, sweeping sidewalks, trash pick-up, and watering trees are just a few examples. It is simply good business to maintain a safe and clean shopping environment. A simple matrix, as shown below, would suffice as a means of establishing an ongoing maintenance program.
Sample Maintenance Plan
Mai ntenance Item Locati on Merchant Responsi ble Schedule/ Upkeep Signature(s)
Trees 123 Main XYZ Store Water 2 times per week, Monday & Fri day
Sidewalk Sweeping Distri ct All Merchants Every two days in front of stores.
PI anters Di strict All merchants Plant flowers in May, water every two days, Monday and Fri day.
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BIBLIOGRAPHY
Main Street. Carole Rifkind; Harper & Row; New York, NY (1 977).
(Pi ctori al history of how main streets developed.)
For Pedestrians Only. Roberto 3rambilla and Gianni Longo; Watson-Gupti 11 ;
New York, NY (1977).
(Case studies of planning for pedestrians.)
The American Store Window. Leonard S. Marcus; Architectural Press;
London and Whitney Library of Design; New York, NY (1978).
(Pictorial history of store window design.)
Street Graphics. William Ewald; American Society of Landscape Architects Foundation; Washington, D.C. (1976).
(Helpful guide for signage and general graphics.)
The Restoration Manual. Orin M. Bullock, Jr.; Silvermine Publishers, Inc.; Norwalk, CT (1966).
(Thorough treatment of design consideration in restoration process.)
The Concise Townscape. Gordon Cullen; Van Nostrand Reinhold Co.; New York,
NY (1971).
(Useful introduction to the principals of streetscaping.)
A Practical Guide to Storefront Rehabilitation. Norman M. Mintz;
Preservation League of New York State; Albany, NY (1977).
(A technical manual discussing design consideration of storefront rehabi 1 i tation.)
Building Improvement File. National Trust for Historical Preservation; Washington, D.C. (1 978).
(Series of helpful leaflets on all design aspects of commercial revitalization.)
Adaptive Reuse of Existing Structures in Ohio. Judith B. Williams;
Office of Local Government Services; Dept, of Economic and Community Development; Columbus, OH (1979).
(Case studies on 24 successful revitalization projects.)
Preservation for Profit: Ten Case Studies in Commercial Rehabilitation. Cornelia Brooke Gilder; Preservation League of New York State;
Albany, NY (1980).
(Case studies of successful commercial rehabilitation projects in New York.)
Alleys: A Hidden Resource. Grady Clay; Cross Section Publishers; Louisville
KY (1978).
(Short, practical book focusing on how alleys can become pedestrian malls, recreation facilities, etc.)
-68-


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BUSINESS DEVELOPMENT


Neighborhood commercial revitalization requires an overall and coordinated planning approach. It is neither a simple nor a short process. Within a framework of revitalization, all physical or other improvement plans should lead to the development of a realistic business development strategy. The interest in overall revitalization is very strong in most cities. Strategies should capitalize on a combination of forces fueling inner-city revitalization, including energy conservation, "back to the city" movement, and neighborhood business revitalization programs.
The purpose of a business development plan is to formulate strategies to make a given commercial area more productive; that is, doing more business.
It may mean the recruiting of needed new businesses to fill vacant spaces or encouraging the expansion of existing businesses to take advantage of underserved markets.
Some of the typical business development problems in neighborhood commercial districts concern the lack of uniform leases or purchase agreements for different properties, nonexistent efforts to recruit new merchants, and to research the market for business expansion or opportunities. Shopping centers have full time professional business development staffs which tackle these problems. They do market research studies to identify the types of businesses that could locate in their shopping centers and call on busineses that might expand into or relocate into the specific center. There is no reason why a neighborhood business district could not undertake similar efforts. It is not necessarily the exclusive responsibi1ity of building owners to fill their available vacancies. The neighborhood commercial community has a substantial interest in seeing vacant storefronts occupied and that they are occupied by users whose operations will be compatible and complementary
-69-


to the commercial district as a whole. A merchants association should have a search committee to assist building owners in the task of merchant selection
and placement within the framework of the district's business development plan.
DEVELOPMENT STRATEGIES
Assessing the revitalization potential provides the analytical framework for developing a realistic business development plan. Information on underserved markets and creative thinking on the part of merchants about the commercial district's potential provides the basis by which to formulate a development scheme. Each existing business should also have its own individual business development plan. Taken together, each should be coordinated to complement one another and provide a framework to make the district more productive.
A plan should also be based on the goals of existing merchants and the objective examination of the commercial district's problems. It becomes, in effect, a distinct planning process with an overall revitalization process. Buciness development cannot occur without other improvement activities, either planned or implemented. Business development strategies to consider fall into three broad categories:
Business Expansion - A business expansion strategy is applicable when the market analysis indicates that existing merchants are underserving the market within the trade area. Expansion plans of individual businesses
should be based on conservative estimates of market potential. This will insure that a business does not overextend itself with expenditures with only a marginal increase in sales. Strategy dictates that merchants help one another obtain proper financing for expansion, more and better promotional efforts or other ways to attract the underserved market to
-70-


to the commercial district. Increased customer traffic will aid
every business. An expansion strategy may be designed to attract
consumers from all parts of the city.
Business Adaption - A business adaption strategy is required when market analysis indicates customer dissatisfaction with the quality and selection of goods and services or when merchants fail to make a profit on a good sales volume due to mismanagement. It may be desirable to change a store's product line or product mix, improve management capacity of local businesses, or simply improve public relations of the business district.
Business Recruitment - Attracting new businesses may be the appropriate strategy when the market analysis indicates a demand for goods and services that are not offered by existing stores. Attraction as a strategy is one by which a commercial district sells itself as a profitable location for a new business. In many ways, neighborhood commercial areas serve an incubator function for many small businesses. New firms continue to start up in older urban commercial spaces (close to customers and access to less expensive space) and they gradually expand to newer and larger quarters as they grow and prosper.
Attracting a better anchor store is one of the most used techniques. Many neighborhood commercial districts have adapted the concept of the shopping center "anchor tenant". Instead of a full line department store, many successful neighborhood commercial districts are anchored by one or more highly visible restaurants. New anchor businesses pay a critical role in the revitalization process. They generate more shopping traffic, have the prestige to make it easier to secure financing for other projects, and other new businesses are more likely to open in an area once an anchor store is committed to the project.
-71 -


Business recruitment generally requires a well organized promotion effort. Local realtor, neighborhood and business leaders are probably the best promotors available.
To be competitive, a neighborhood commercial district must have a proper mix of retail and service operations that reflect the needs of its trade area. Diversity will improve the district's overall economic viability.
Any business development plan should address the appropriate retail mix which the local market can support. Central to any retail mix is compatibility. Each store helps the other in terms of attracting customers.
Part of business development planning is compiling information which will entice potential businesses to seriously consider locating in the area.
Besides the market study, the information packet could include a profile of available buildings, plans for other private and public improvements or other community amenities. The key is persistence. Remember a revitalization process takes time and a long-term commitment.


BIBLIOGRAPHY
The Downtown Improvement Manual. Emanuel Berk; American Planning Assocation, Chicago, IL. (1975).
(Comprehensive reference manual on various elements of downtown improvement.
Retail Location Analysis Manual and Retailing in Low-Income Areas.
Real Estate Research Corp.; Chicago, IL (1970)
(Useful, one of a kind book to understand retailing in low-income areas.)
Local Business and Employment Retention Strategies. Roger Vaughan;
Urban Consortium Information Bulletin; U.S. Dept, of Commerce;
Washington, D.C. (1980).
(Informative booklet focusing on urban economic development concerns and approaches.)
Coordinated Urban Economic Development: A Case Study Analysis.
National Council for Urban Economic Development; Washington, D.C. (1978) (Excellent booklet on economic development planning in urban areas.)
Supporting Local Industry: A Handbook for Local Development Groups to Work With Existing Industry. Mississippi Research & Development Center;
Jackson, MS (1980).
(Easy to read handbook on how non-profits can assist existing businesses.)
Making Local Economic Development Decisions: A Framework for Local Officials. Harold Wolman; The Urban Institute; Washington, D.C. (1979).
(Provides "state of the art" review of policy guides in formulating econoimc development strategies.)
Neighborhoods in the Urban Economy. Benjamin Goldstein and Ross Davis;
Lexington Books; Lexington, MA (1977).
(Book describing interrelationship between public, private and community sectors to create a conducive economic environment for investment.)
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SECTION IX
PROMOTION


Promoting a neighborhood commercial district is every merchant's business. The primary purpose of business district promotion is to create an aura that will entice shoppers - to have fun, to see that the business district has to offer, and to build an enthusiasm within the community for a vital business community. Establishing shopper loyalty and identification and maintaining it is an on-going process which requires considerable merchant commitment and planning.
HOW TO START
A promotional event's success depends on timing, planning and effort that are put into the event. A Promotion Committee should be a merchants association's strongest committee. With a strong chairman and well-organized committee, successful events can be planned and implemented.
The committee is responsible for analyzing the needs and determining the promotional goals of the business district which they as an association want to work toward on an annual basis. A plan of action for a year should he formulated, so that the committee can select the events to be sponsored. The basic promotional needs of any business district fall into three categories.
1. Retail Sales Promotions - These are events designed to specifically increase retail sales by attracting shoppers to the business district.
A cooperative retail sales promotion is an excellent way to help all merchants, especially small stores that cannot afford a big advertising campaign. This type tends to have a short-lived effect on attracting shoppers.
2. Festivals - Promotions designed to draw people to a business district for fun and excitement. Instead of emphasizing selling, this type offers things to see and do whether it be entertainment, food, play,
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etc. Increasing retail sales is a by-product. Festivals create a warm feeling toward a business district - one that can build community loyalty and business district goodwill.
3. General Promotional Programs - Events designed to promote the business district on an "institutional" basis, which sells the business district itself. This type can build a "shop the community" attitude. For neighborhood business districts, the key is to hold events that will give the community a sense of pride and ownership in their business community. They are image builders and can be geared toward celebrating improvements that are being made.
COMPONENTS OF SUCCESSFUL PROMOTIONS
1. Appeal of the promotion - Event should appeal to not only the potential shopper, but especially to merchants who are putting it
on. Merchant enthusiasm is critical to insure commitment to the event.
2. Timing of event - Promotions are most effective on a one or two day basis. One day events are ideal for neighborhood business districts because they do not take the merchants away from his/her business too long.
3. Good facilities - select a proper setting for the event. Temporary street closure is a must for many events.
4. PIanning - Events should be planned and organized according to their purpose. In most cases, a promotion takes a busy six to eight weeks to plan.
5. Advertising the event - Word must get out to the community that something is happening. Festivals need lots of promoting to be worthwhile. Do not hesitate to take advantage of freebies, such as public service announcements (PSAs) by local electronic media.
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6. Purpose of the event - Do not forget that the purpose of any promotional event is to advance the business district's image and make it an exciting place to shop and to be.
7. Organization - The key is to get as many merchants/people involved as possible. Do not be afraid to seek volunteer assistance. A wel1-organized committee assigning specific tasks to each member equitably will not only get the job done, but will build goodwill to tackle the next event.
8. Start small - The key is to determine the energy level of the association. Two events per year for neighborhood business districts is plenty. Demonstrate success and then watch the enthusiasm grow.
SOME STEPS IN DEVELOPING A PROMOTIONAL PLAN
Once a business district's needs and goals for promotion are understood and set, the Promotion Committee is ready to develop a plan of action. Some steps to consider are:
1. Review other business districts' promotional activities. Develop a list of what events have worked on similar business districts.
2. Develop a schedule of promotions that fit your goals. Be liberal to insure choices.
3. Lay out a planned year-long program, including suggested list of both promotional and advertising (retail sales promotions) events. This plan is intended to provide the Committee with basic information for decision making.
4. Determine the appropriate time of year to hold specific promotions. The key is to use promotion wisely given the volunteer nature of volunteer business associations. It is now time for preliminary selection and approval by the Committee.
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5. Set tentative dates for each event. In determining the best month or day to hold an event, keep in mind
• when is payday?
• what are the spending patterns, which days or holidays are big in the community
• can you plug into other events?
t consider the weather
6. Schedule exact date(s) for all promotions for the coming year.
7. Establish a budget based on projected size of the event. Determine whether or not promotions can be self-sustaining or will need to
be subsidized.
8. Determine manpower requirements. Remember to plan only as many events as you have manpower and funds to handle in a first-class manner.
9. At this point, the Committee should be ready to write a plan of action for presentation to the merchants association for modification and final approval. A sample Plan of Action for an event should include information on:
a. Name of event
b. Purpose/goal of event
c. Date/place of event
d. Pre-event activities list (assigned tasks)
e. Event activities (who is responsible for what)
f. Publicity requirements
g. Budget
10. After association approval, print a calendar of events for immediate distribution.
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11. Association should appoint or obtain a volunteer to act as each event's chairperson. Spell out to these chairpersons that this is their prime responsibility for the coming year. Chairperson can
then line up as many volunteers as needed to organize and run the event.
SOME IDEAS TO CONSIDER * •
1. Sale Promotions
• Midnight Madness Sale - Merchants stay open until midnight on a specific day/month.
• Holiday Specials - Retail sales on days preceding national/Iocal hoii days.
• Old Fashioned Prices - Roll-back prices on certain items.
• Sidewalk Bazaar - Summer day event for merchants to clear their shelves of unwanted and old merchandise which they display on the street and sell at very low prices.
2. Festi vals
• Ethnic Celebration - street fair based on the community's ethnic character, emphasizing foods, dance and entertainment.
• Neighborhood Block Party - similar to a street fair, but with display booths of all descriptions. Excellent for involving non-profit organizations to promote their programs as well.
• Arts and Crafts Fair - Event for community artists to display and sell their creations.
• Neighborhood Garage Sale - Street closure and space rental for residents to sell their unwanted household items.
3. General Promotion Programs
• Merchants Association Logo Contest - Involve local artists to design logo or name for neighborhood business district.
• Awards for Excellence - Awards program to recognize community students or volunteers.
• Pumpkin Carving Contest - Halloween event to show business community's commitment to a safe and fun Halloween.
• My Dad or Mom is the Best Contest - Essay contest for children with winners displayed in storefronts for public to read.
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BIBLIOGRAPHY
I.D.E.A., Downtown Promotion Handbook. The International Downtown Executives Association; Washington, D.C. (1980)
(Much of this section was adapted from this helpful booklet.
Geared to downtown promotion and associations with paid staff, it nonetheless provides the basics of promotion.)
How the Use the Media. Patricia Warden, National Recreation and Park Association; 1601 N. Kent Street, Arlington, VA 22209 (1977)
(Useful guide to answer the who, what, where and how regarding media use.)
Arts Festivals: A Work Kit. Man Levinson, Arts Extension Service;
University of Massachusetts, Amherst, MA 01003 (1978).
(Helpful how-to booklet for organizing and promoting arts and crafts events .)
Guide to Public Relations for Non-Profit Organizations. Grantsmanship Center News, 1031 South Grand Avenue, Los Angeles, CA 90015.
(Handy tips on press releases, PR events and media relations.)
How to Promote Your ShoDping Center. John Fulweiler, Chain Store Age Books; New York, NY (1973)
(Good source for information on promotion and advertising.)
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SECTION X
FINANCING


The difficult part of any neighborhood commercial revitalization effort is figuring out who pays for it. In most inner-city neighborhood situations, merchants have little investment capital and little incentive to make improvements to buildings they do not own. Private financial institutions have also been reluctant to invest in many older urban areas due to past experience and due to real or perceived greater risks in comparison with suburban or other locations.
For our purpose, financing is divided into two categories: business financing for improvement and/or expansion; and financing for public improvements. Both are difficult and complex issues. The purpose of this section is, rather, to familiarize the reader with some of those programs most widely applicable to neighborhood revitalization situations.
The problem of obtaining business financing in older urban areas is threefold: 1) the merchant and/or property owner must be convinced that a revitalization effort will result in increased sales and profit; 2) the financing for building improvements must be inexpensive enough to make up for the lack of capital among inner-city merchants; and 3) lending institutions must be convinced that the risk of lending to businesses in the area is not too high. The key to overcome the bank's reluctance is to reduce the bank's risks through the coordinated nature of merchants and property owners participating together to implement an overall revitalization plan. Few lending institutions will make a loan to a single entrepreneur on a deteriorated commercial strip, where the rest of the merchants are apathetic to the idea of revitali zation.
Based on successful efforts around the country, the availability of long-term financing is the critical element. Long-term financing makes many
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business improvement projects feasible with 20 year loans because the monthly payments become more reasonable. However, banks are mainly short-term lenders (up to 5 to 10 years). What is the answer? Many cities have developed their own financing programs for older business districts. These programs are based on the leveraging of a variety of funding sources. The concept of creative leveraging is one of piggybacking one federal program with another, federal monies with local funds, or federal and/or local funds with private capital. What has been learned thus far is that no one funding source can solve the long-term loan gap for smaller businesses. The special government and local private financing programs to overcome "long-term loan gap" should be explored first as a means of obtaining business financing.
FINANCING SOURCES FOR BUSINESS IMPROVEMENT * •
Commercial Banks - Commercial banks have long been the cornerstone of lending for small and growing businesses. They are "full-service" institutions which offer a variety of loans on either an unsecured or secured basis. Some types of loans available include:
• Personal secured/unsecured loans
• Straight commercial loans
• Government-guaranteed loans
• Receivables/inventory financing
• Real estate/equipment term loans
• Unsecured line of credit/term loans
t Letters of credi t
In most cases, lending by a bank is done on a secured basis. A secured loan requires a pledge of some or all the assets of the business and in most instances the personal guarantees of the owner. An unsecured loan is granted
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Full Text

PAGE 1

ENVIRONMENTAL DESIGN AURARIA LIBRARY A+P LD 1190 A78 1 ?:=:3 i72 NEIGHBORHOOD COMMERCIAL REV IT ALIZA TION: A PRIMER

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( ABSTRACT A cross the country today, man y c o mmunities are reaping t h e r e w ards of revitalized n e i ghborhood comme r c i a l districts . . M a n y fact ors a r e respo n sible for t h ese success stories. Revitalizat ion experience indicates t h a t an urban ,._. • • ' ' . • . • • . . r retail market does exist, albeit not as strong as it once was. T h e key, in many regards, has been the neighborhood commercial district's ability to adapt to a declining 'and/or changing market and capitali. zing of its assets. The -adoption of shopping center management and retailing principals and improved physical appearance are common and necessary basic ingredients for success. Neigh bor hood commercial revitalization is poss ible, b u t only if property owners, merchants, and residents are willing to organize and work together to improve what is collectively theirs: their public and husiness image. Neighborhood commercia l revitalization is commonly defined as the phys::31 up-grading of and financial investment in older commercial districts of inner-city neig h borhoods. Revitalization also implies growth, progress, and the infusion of new activities into a s t agnan t or declining commercial district which is no longer attractive to t h e investor or shopper alike. T ypically, revitalization involves reversing a disinvestment cycle. "Merchants as their own developer" describes the organizing philosophy of the Primer. A voluntary, self-help approach is recommended for only small, one to two block commercial areas . T h e neighborhood commercial revitalization process i s based o n the organizational and management principles of s uburban shopping centers. Learning from t h e competition is necessary t o reverse t h e negative image of neighborhood shopping in many areas. T h e "shopping center model" has been used successfully aroun d t h e c ountry, th rough in most cases cities h ave used legal sanctions to insure cooperatio n and u niform i m provements. Put simply, t h e neighbor hood commercial revitalizati o n program is composed of:

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t Organization and Management t Assessing and Planning Revitalization Potential • Desig n Improvements t Business D e v elopment • Promotion and Mark eting • Fin ancing for Improvements The Primer's intent is to solve the proble m of information. N eighborhood commercial revitalization has been one of the last aspects considered in a neighborhood re v italization strategy. Up-grading hous ing and solving other com plex social problems have been tack l e d first. "Hov-1 to" literature is plentiful in these areas. Literature on neighborhood commercial revitalization is mostly programmatic and does not serve the purpose of providing enough information to al low for decision making in the case of neighbo rhood-initiated efforts. I n most cases, the literature is geared toward downtown redevelopment rather than th e neighborhood business sector. The response to this problem has been the development of th e Prime r . The Primer provides an overview of the neighborhood commercial revitalization process as it relat es to a voluntary, self-help effort initiated at the neighborhood level. Its intent is to describe some of the tools and processes available for such a purpose. The "hm-1 to" approach is used instead of "why" to better assist the in understanding t h e process of revitalization and commite ments needed to underta k e it. As such, it provides information for use within a decision mak in g framework for neighborhood leaders to determiner a ccept ance of the revitalization concept. T h e Primer stresses tha • revitalization is not an end in itself. It is an ongoing process by whic h n e ighbo rhood m e rchants can undertake to stay ahead of their competition. Commercial revitalization should be attempted within a

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framework of overall neighborhood revitalization. Commercial revitalization can be the cornerstone. Two elements stand out in commercial revitalization success stories: the key was the prep aration of an overall redevelopment plan; a n d th e d e velopment o f leg ally e nfo rce abl e d esign, participation and m anagem ent s t andar ds. O bviousl y , there is no one pattern o r strategy for success. N o two neighborhood commercial districts are alike. Commercial projects initiated and managed on a voluntary basis only are successful a th ird of the time. The key to improve this percentage is strong local leadership, majority participation of merchants and property owners,and involvement of the neighborhood in the commercial revitalization process.

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NEIGHBORHOOD COMMERCIAL REVITALIZATION: A PRIMER ROBERT D. HORN MAY 1983 A thesis submitted in partial fulfillment of the existing requirements for a Masters Degree in Planning and Community Development. College of Design and Planning University of Colorado at Denver

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• PREFACE Until the last decade, efforts to meet urban needs and solve complex urban problems have largely ignored self-help improvement approac hes. All too often, government led the way in developing and fostering revitalization programs. The consequence has been one of fostering dependen ce. Most revitalization efforts have failed to develop the human potential in our neighborhoods. Revitalization is defined as the rebirth of inner-city as a good place to live, work, s h op, and spend leisure time . If this is to occur successfully, one must believe in t h e notion that people know what i s best for them; that a neighborhood is the best judge of its own interests. Revitalization must be done with people, not for them. The author believes that people have the inherent ability to solve many neighborhood problems collectively. For this reason the Primer is intended to aid in the effort of fostering more self-help initiatives at t h e neighborhood level. Its development grew out of th e author's frustration of being unable to locate suitable literature on neighborhood commercial revitalization to assist in merchant-initiated projects. In dealing with merchants, most literature was either too short to convey the breadth of activity and energy needed or too long for any merchant to sit down and read. The need for a Primer arose out of this experience. An oral presentation on neighborhood business revitalization was not sufficient to enable merchants to fully understand the complete process or commitment needed. Many wanted something more specific to read and reflect on before d eciding whether or not to participate in a revitalization effort. The method of putting together the Primer involved researching exsing case studies on successful projects and readin g literature, generally geared I

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toward downtown and shopp ing center development. What became obvious is that neigh borhood commercial revitalization does work in certain settings and there are common elements for eac h success . Part of th e Primer is also based on th e author's own experience of working with merchant-initiated projects in D enver. T h ese were mainly small, one or two block, neighborhoodoriented commercial areas. Each exper ienced moderat e s ucce ss with th e imple mentation of various components of a neighborhood commercial revitalization program. The Primer is primarily written for the merchant or neighborhood leader audience, though professionals may find it useful. It is hoped that neighbor hood-b ased org anizations will use t h e Primer to enco u rage business communities to organize and improv e their business districts. It can also serve a s a training m anual or guide for various groups. The author is grateful to all whose efforts contributed to make the Primer possible. First and foremost to Professor Joni Jones and T. Michael Smith of th e Center for Community D evelopment and D es ign for their constructive insight and patience in waiting for its c ompletion . To other staff of CCDD goes my heartfelt thanks. Special thanks to Cathy Wilson. Her typing assistance warrants the highest praise. The Primer is seen as an evolving d ocument, one that will be improved over time to reflect new methodologies, changes in consumer preference and business t echniques. In this regard, the author encourages comments and constructive criticism. A n y correnspondence m a y b e addressed to: C enter for Community Development and Desig n , University of Colorado at Denver, 1100 Fourteenth Street, Denver, Colorado 80202. I I

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Abstract Title Page Preface TABLE OF CONTENTS I. INTRODUCTION ................................................ . • Introduction t Understanding a Few Terms t What is Neighborhood Commercial Revitalization t Why Undertake Neighborhood Commercial Revitalization t Purpose of the Primer t How the Primer is Organized II. PROBLH1S AND DECLINE OF NEIGHBORHOOD CE. TERS ...... l2 t Introduction • Why They Have Declined t Problems and Perceptions III. LEARNING FROM THE SHOPPING CENTER ............................ 20 t In troduc ti on t Organization t Image IV. ORGANIZING FOR I 1PROVEMENT ................................... 25 t Introduction t Merchants' Association V. PLANNING THE REVITALIZATION PROCESS .......................... 32 VI. ASSESSING REVITALIZATION POTENTIAL ........................... 40 t Introduction t Trade Area Study t Survey of Merchants/Building Owners t Visual Analysis VII. DESIGN FACTORS ............................................... 50 t Introduction • Design Plan t Building Improvement Options • Streetscape Design t Maintenance Plan

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VII I. BUS I NESS DEVELOPMENT ......................................... 69 t Intro duction t Development Strategies IX. PROMOTIO .................................................... 74 t Introduction t How to Start t Steps in D evelop ing a Promotional Plan t Some Ideas to Consider X. FINANCING .................................................... 80 1 Introduction • Financing Sources for Business Improvements • Financing Sources for Public Improvements XI. CONCLUSION : INGREDIENTS FOR SUCCESS ......................... 90 XII. APPENDIX t Glossary of Terms t S urvey Development and Methodology t Sample Surveys 1 Tenants Found in Neighborhood Shopping Centers • Trad e Areas t Per Capita Retail Expenditure s • Consumer Expenditures • Business Plan Outline t Pro Forma Analysis Outline t Business Zoning Information

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SECTIO 1 z 0 .... () :) Cl 0 a: 1z -

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Jus t as neighborhoods h a v e playe d a n i m portant role in t h e vit ality o f cities, s o have neighborhoo d commer cial dist r i c t s play e d a similar r o l e in the well being of neighborhoods . It was the corner grocery store, whose proprietor exten ded informal credit and acted as the neig h borhood ombudsman that m ade th ese small, y e t vital comme r ci al are a s th e foca l poin t s of man y u rban n e ighb or hoods. However , o ver t h e years a v a riety o f social and economic forces h as reduced the ability of neighbor hood s h opping districts to remain competitive and healthy. Vacant storefronts, d ilapidated buildings, insufficient par k in g , f requent turn o ver o f businesses and o w nership, v i s ual cl u t t e r and t r ash are s ymboli c of t h e problems many n e ighbo rhood commercial distric t s face tod a y . Many urban commerci al areas have declines while at the sa m e tim e t h e shopping mall ascended . Malls are successful because they offer free parking, good maintenance, safer indoor shopping, and coordinated activities for promotion and manag e m ent that wor k s h a r d to retai n a comp a t ible b a lance of shop s to kee p s h oppe r s i n their cent e r long er. The r etailing principles are w el l tes t e d and th e s y s t e m work s very well. Small , urban commercial business districts are different. H owever, so m e of the pri nciples of a s uccessful shopping center can be adapted for use on commercial strips. For inst ance, a merchants association can replace a singl e manager and operate more democratically to coordinate common a ctivities, suc h a s advertising and maintenance. It can also giv e stron g direction or advice to property owners on the appropriate mix of shops to collectively enhanc e th e commercial area. Remember, a neig h borhood commercial district has advantages . It is much closer to th e consumer than s uburban shopping malls. It h a s a warm, 1 -

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small scale character in its buildings, though in most cases they need improvement; it is on the cutting edge of our time to improve what we already have, to revitalize our neighborhoods, to save energy by s h opping c lose to home. What are the alternatives for urban commercial districts? What mak es for a thriving business environment? What can be done to improve its image, competitive advantage, and break the disinvestment cycle of the urba n commercial district? There are no simple answers to these questions. No easy solutions or specific m e thod s will insure instant s uccess. Yet most will agree that something must b e done. Across the country today, many communities are reaping the rewards of rehabilitated and revitalized business districts. Obviously, many factors are responsible for these success stories. Revitalization experiences indicate that an urban retail market does exist, albeit not as strong as it once was. The key, in many instances, has been the neighborhood commercial district's ability t o adapt to a declining and/or changing market and capitalizing on its asse ts. The adoption of shopping center management and retailing principals and improved physical appearance are common and necessary basic ingredients for success. Neighborhood commercicl revitalization is possible, but only if property owners, merchants and the neighborhood are willing to work together to improve what is collectively theirs: their public and business image. To fully understand neighborhood commercial revitalization, clarification of terms i s needed to distinguish the neighborhood commercial district from s hopping centers. Terms are often used ra ther loosely, but the Urban Land 2 -

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Institute has standardized those terms which will be used through the primer. The term shopping center refers to: a group of architecturally unified commercial establishments built on a site w hich is planned, developed, owned, and managed as an operating unit related in its location, size, and type of shops to the trade area that the unit serves. The unit provides on-site parking in definite relationship to the types and total size of the stores. The above definition distinguishes this land use and building type from the shopping district. A shopping district is a miscellaneous collection of individual stores which stand on separate lot parcels along streets and highways or which are clustered as a concentrated business district, with or without incidental off-street parking. For our purposes here, the definition of a neighborhood business district is one of a shopping district that provides for the sale of convenience goods and services (food, drugs, sundries, and barber/beauty shops, etc.) which meet the daily needs of an immediate neighborhood trade area. The unplanned nature of the district also distinguishes it from the neighborhood shopping center as explained below. Over the years, the shopping center has evolved into three distinct types with the major tenant classification and geographic boundaries from which the center draws customers determining the type rather than location, size or some other variable. The three types are neighborhood, community, and regional centers. The neighborhood or convenience shopping center is the same as a n e igh borhood sho pping district except that it is generally anchored by a supermar ket as its principal tenant. T h e neighborhood center is the smallest type of shopping center with typical gross leasable area of about 50,000 square feet and normally serves a trade area population of 2,500 to 40,000 people within a 6-minute driving radius. -3-

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The community shopping center is ar0und a junior department store or variety store as the major tenant, in addition to a supermarket in some cases. The community center typically has a gross leasable area of about 150 ,00 0 square feet, with some ranging as h igh as 300,000 s q uare feet. It normally serve s a trade area population of 40,000 to 150,000 people. In some instances, a community center may have a strong specialty or discount store as an anchor tenant, but not a full-line d epartmen t store. The regional shopping center provides shopping goods, general merchandise, apparel , furniture and home furnishings in full depth and variety. The major tenant is a full-line department store. Super-regional centers normally have 2 to 3 full-line d e partment stores. Typical gross leasable area is 400,000 square feet, with many reaching l ,000,000 s quar e feet. The normal d esign uses the pedestrian mall , either open or closed, as a connector between the major anchor stores. The trade area ranges from 10 to 15 miles or more and serves some 150,000 or more people. WHAT IS NEIGHBORHOOD COMMERCI A L REVITALIZATJnN N e ighborhood commercial revitalization i s commonly defined as th e physical upgrading of and financial investment in older commercial districts of innercity neighborhoods. This process can involve a variety of techniques, including the rehabilitation of existing buildings, construction of new commercial ,facilities, "public works" of new lighting, redesigned streetscape and facade renovations. Commercial revitalization also implies gr0\1/th, progress, and the infusion of new activities into stagnant or d ecl in ing districts which are no longer attractive to the in v estor or shopper al ike. Typically, revitalization involv e s stopping a disinvestmen t cyc l e . A new climate is established whereby inv es tment occurs to remodel o r rebuild a portion of a 4 -

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neighborhood business sector to accommodate more profitable and expanded reta i 1 activities. The neighborhood commercial revitalization process is designed to capitalize on the inherent assets of a business district and replicate the strengths of t heir main competition: the suburban s h opping center. By utilizing shopping center concepts, neighborhood commercial revitalization becomes a comprehensive redevelopment program of management, promotion and marketing, public and private physical improvements, design standards and financing. From our point of view, it is a voluntary, self-help development process by which retail merchants act as their developer. ORGANIZATION, IMAGE, and PEOPLE are t h e three k ey words which the revitalization process is built around to improve a business district's economic position. For our purposes h2re, neighborhood commercial revitalization is intended to provide a redevelopment framework for small commercial areas of limited size which provide useful goods and services to a surrounding inner-city neig hbor hood. In geographic terms, "merchants as their own developer" is a factor that limits the scope. Generally, a voluntary, self help process should be limited to one or two blocks of commercial activity. The rationale is that to attract shoppers and/or new businesses to neighborhood business districts, they must be able to convey the image of vitality, health, and well-being. Put simply, neighborhood commercial revitalization is a six point program of: • Organization and Management • Assessing and Planning Revitalization Potential • Design F actors • Bus in ess Development • Promotion and Marketing 1 Financing Improvements -5-

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WHY UNDERTAKE NEIGHBORHOOD COMMERCIAL REVITALIZATION Variety and quality in goods and services, convenient location, competitive pricing and adequate parking all play a major role in th e marketing success o f any commercial dis trict or shopping cen ter. Appea rance is also an important factor. The appearance of individual buildings, storefronts, signs, alleys, window displays, etc. establishes the visual character and shopper's perception of the business district as well as the stores within. Presenting an attractive and progressive image is simply good business. Generally, shoppers use price and the visual senses to determine where to shop. To attract more and better business, an improved image is a necessary factor. Commercial revitalization does not occur overnight, though it might be argued that change will create some new or instant interest. Instead, attitudes and shopping patterns change slowly. Attracting more shoppers requires more than new storefronts or signs. It requires the continued building of an image of growth and vitality. Once growth has occurred, it must be fueled with continued activity which further inspires confidence t hat capital and labor invested is safe and profitable. The first order of business for any merchant is not tending t h e store, but attending to the customer and trying to attract more of them. Successful retailing is built around a customer-oriented attitude. This attitude does not mean simply trying to have what the shopper wants in terms of goods and services, but extends beyond to a clean and attractive setting, creating an attractive and fun s h opping environment, and mak ing goods and services available at h ours convenient to the customer and so on. To remain competitive and a viable alternative to shopping centers or downtown, neighbo rhood commercial districts must adapt and become once again the focal point of neighborhoods. -6-

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Over the past decade, revitalization of urban neighborhoods has become the cornerstone o f rebuilding th e economy of many American cities. Commercia l development, until four yea rs ago, was one of the last aspects c onsidered in a neighborhood revitalization process. Upgrading urban housing and solving complex soc i al problems were tackled first. There i s now a growing concern that business revitalization must tak e place if cities are to remain viable places to work and shop as well as t o live and spend leisure time. Commercial revitalization should be undertaken cautiously. Its success, in many ways, is on overall neighborhood revitalizat ion. Clearly, neighborhood commercial revitalization is m ore accept a ble in healthy neighborhoods. Busines s district merchant s and property owners must know t h e s urrounding community to determine whether or not a climate of revitalization is occurring. This climate is manifested through housing rehabilitation activities, increasing income level and other signs of physical and economic renewal. PURPOSE OF THE PRIMER It is not the purpose of this primer t o provid e all the ans wers to every question on how to successfully undertake a neighborhood commercial revitalization effort. Instead, the primer provides a view, albeit brief, of neigh borhood commercial revitalization as it relates to and can be accomplished on a voluntary, self-help basis by an organized merchant group alone or in conjunction with a neighborhood-based development organization and association. Its intent is to d escribe some of the tool s and processes available for this purpose. What i s most important is that the reader understand that neighborhood commercial revitalization is one component of neighborhood re d evelopment. Neighborhoods must utilize comprehensive and i n tegrated efforts if th e y are 7 -

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to remain healthy and viable places to live. H ousing and other socio-economic problems must also be addressed . A growing and healthy trade area can only complement a neighborhood business revitalization process. T h e information about neighbor hood business revitalization will be practical and in some cases , useful to anyone interested in the subject. It ut ilizes more of a "how t o " than "why" approach; it assumes that the rea der is a nonpractitioner and is in the p r oces s of determining whether or not to collectively underta k e a neighborhood commercial revitalization process. In this regard , the primer provides helpful guidelines within the framewor k of d ecision making. The point is for commercial districts to start. The neighborhood commercial revitalization p rocess proposed her e in provides merchants and property owners with some t ools to properly select their own starting point given a commercial district's c urrent situation and future plans. HOW THE PRIMER IS ORGANIZED To understan d commercial revitalizat ion is to attempt to bring a d e gree of order to the many in h e rent factors of economic development in a retailing setting. The individual decisions of consumers, merchants, investors, and governments have collectively determined the health or decline o f neighbor hood commercial areas. It is, therefore, not the intention of this primer to spell out a precise order or formula for success. Instead, the organization provides an overview of each factor comprising a commercial revitalization process. It is assumed that the reader will realize that each section is interrel ated and interdependen t on one another if revitalization i s to occur. Sect ion II identifies the socio-economic forces which c aused the growth of suburban shopping cent e r s and t h e subsequent decl ine of n e ighborhood commerci al districts. In Section III, the reader will find a di s cussion on 8 -

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why these shopping centers are successful. The section illustrates the management and retailing techniques which neighborhood commercial districts must adapt and/or adopt for their own use if they are to re m a in an economic entity. Section IV presents the organizational framework by which commercial districts can come together to u nderta k e a revitalization process. The reader will be led t hrough some of the organization steps t hought t o be necessary to establish a volunteer and representative organization. Section V discusses the planning aspects of the revitalization process. Combined with Section IV, th ese sections should provide th e rea der with an understanding of the activities, tim e and energy it will tak e to succe ss fully complete a commercia l revitalization project. Sections .VI through X outl ine the basic " nuts and bolts" of the cor.unercial revitalization program. Section VI presents planning tools, by which to evaluate a commercial district's potential for successful revitalization. Section VII sug g ests d es ign solutions and guidelines for "street scap ing" and storefront improvements . H e l pful design hints are provided to a ss i s t merchants in determing "good" design. Business development strategies are discussed i n Section VIII. Section IX provides an overview on how to develop promotional and/or other marketing events. Section X discusses sources for small business finance and how to implement public improvement using various financing mechanisms. Section XI includes a series of factors that are thought to be n ecess ary t o n eighborhood commercial revitalization to work on a particular commercial district. T h e intent is to outline some of the successful parameters by which to evaluate a c ommercial district's potential for revitalization. 9 -

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In the Appendix, the reader will find useful and specific information on a variety of t opics whic h were mentioned, but not inc l uded, in Sections. T h ese info rmation sheets, sample surve ys, e t c . are in t ende d t o p r ovide e x amples o n l y . The reade r will also fin d a bibliography at the end of eac h section. They provided the basis for each chapter and s h ould be sought for addi t ional study t o refine the work activity of each section. be a window shopper ... SUPPORT YOUR LOCAL MERCHANTS * :: -1 0 -

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BIBLIOGRAPHY Main Street Manual. Piedmont Environmental Council; Warrenton, VA (1978). (Excellent b o o klet on revitalizing s mall b usiness district u sing historic preserva t io n tec hniques.) " Conserve N eighborhoods: Special Issue on Commercial Revitalization, No.7" , National Trust for Historic Preservation; Washington, D.C. ( 1979). (Excellent hand-out on the conservation approach to commercial revitalization.) The Downtown Im rovement Manual. Emanuel Berk; American Planning Association; Chicago, IL 1976). (A comprehensive reference manual on the various elements of downtown re v it a 1 i z a t i o n . ) Shopping Center Development Handbook. J. Russ McK eever and Nathaniel M. Griffin; Urban Land Institute; Washington, D.C. (1977). (Excellent general purpose book covering all aspects of shopping center development and operation.) Neighborhoods in the Urban Economy. Benjamin Goldstein and Ross Davis; Lexington Books; Lexington, MA (1977). (Good book dealing with all aspects of neighborhood commercial revitalization.) -11-

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SECT (f) w ....J co 0 cr: a. cd w z _J (.) w 0

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A city is a composite of neighborhoods. Defining just exactly what a neighborhood i s h as long been a debatable and complex issue. Geographic term s , distinctive housing types, ethnic similarities or landmar k s have all been used to delineate a neighborhood and its boundaries . But, more than anything, a " neig h bor hood" i s probably a perception about where and how people live and among whom. Clearly, all agree they are the building blocks of cities. They are a physical reflection of a city's health and change patterns. Within a neighborhood itself, commercial areas are its physical and social barometer. Historically, neig hborhood commercial areas served an important social and economic function. In a less mobile soc iety , they were places where neighbors met and socialized, purchased goods and services and sought employment in some cases. The commercial areas mirrored the health or decline of the neighborhood over time. For the most part, using the adage "as the neighborhood goes, so goes its shopping area" is appropriate to understand why commercial districts have declined in urban areas. Chan g e is, h owever , b y no means a bad thing. Change can be good when it m eans better housing, more jobs, safer community, etc. What is important to understand about neighborhood decline or change is that a neighborhood and its commercial areas do not react independently. Problems of one affects the other. This section proposes n generalized theory of why commercial districts declined in inner-city neighborhoods. It is essentially a story of neigh borhood decline that occurred gradually over time. WHY THEY DECLINED Over the years, a wide range of social and economic forces has reduced the ability of neighborhood commercial areas to remain viable . L ik e \ vith most -12-

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change processes, a sequence of events led to the gradual decline of the viability of inner-city neighbor hood s to suppor t its commerci al activity. The s cenario g e n erally b e gin s with suburban ization , th e shift of population from city to the suburbs after World War II . This populati o n s hift was p ri marily c a u se d by pent up h o using deman d , financ i a l assistan c e g i ven by the federal gov ern ment, and t h e a v ailability of new h o usin g outside of core cities. The ability to escape from "city" problems suc h as overcrowded sc hool s ' and rac i al changes in neig h borhoods was very attractive to the white middle class. The in-migration of racial minorities to inner-city neighborhoods coupled w i th pr o sub u rban g rowt h p olic i es of t h e fede ral gov e rnm ent pr obably fueld this s h i f t t o th e suburb s . The person a l auto m obile, inter-state highway s y stem and the begi nnin g s o f public mass transp o rtation provide d t h e means for the shift. Suburbanization opened up innumerable new retail and service markets. It not only scattered populati on, but all compo nents of t h e city, i nclu d in g p l a ces of busin es s and m a nufactu r i n g, re c reation, etc. What became c l ear was that t h e n e w subur b ani t e s did not return t o their former n e igh bor h oods to shop. Instead , t h e retail i ndustry ca t alyzed t h e creation of the s h oppin g center based on accessibility to the automobile, one-stop shopping for a w i d e range of consumer goods and services and protection from inclement weather t h rough design features. T h ese shopping centers eventually became a way of life not only f o r suburban residents but for people from city neig h borhoods who began to find it conveni ent and enjoyabl e to do all their shopp in g there . The immediat e impact w a s the d e cl i n e of th e Central Business Dis t r i c t . A s "Downtown" deteriorated with a subs e quent lo s s of t a x r evenues, publi c officials injected massive public fund s and tax br ea k s to revive t h e det erio r a t in g C entral Business -13 -

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District. It was an attempt to make the Central Business District competitive with suburban shopping malls. In their attempt to save the Central Business District, neighborhood commercial areas were ignored by public officials and n e ighborh ood r es idents who were shopp ing in th e suburban m al ls. A s the more affluent urban population shifted to t h e suburbs, t h e poo r and racial minorities moved into inner-city neighborhoods. The economic result was a decrease in the level of disposable income. Core cities became a symbol of poverty, crime, family disorganization, and juvenile delinquency. In short, the social and economic fabric of inner-city neighborhoods changed. This caused the original merchants to simply close shop or follow their more affluent customers to the suburbs. The large food or other retail chain who anchored many older commercial areas frequently decided to follow the new markets. Neighborhood commercial districts were no longer characterized by businesses owned and operated by local residents. The social aspects of doing business in a neighborhood was no longer important. It became a matter of business survival where lower quality of merchandise and marginal profits were the rule rather t han the exception. In many cities, urban renewal and model city-type programs, while well meaning, destroyed neighborhoods. Many were cut in half by super highways, often cutting off traditional social and shopping patterns. New construction, if implemented at all, simply created a new, less cohesive social fabric that did not reflect the social values and customs of the old neighborhood. This furthered the flight to t h e sururbs on the part of the middle-class. A vicious c ycle of disinvestment became th e result. Disin v es tment is a process by whic h financ i al institutions and private investors mak e a conscious decision not to invest in an area. One of the most important fac t ors contributing to disinvestment in neighborhood commercial areas was the -14-

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perception of crime in commercial districts on the part of residents and potential shoppers from outside the neighborhood. This perception of crime is often just as importan t a problem as th e actual o cc urrence of crime. Neig'hborhoods undergoing a population shift become places w here people saw one another as " s trangers" . As fewer people with similar bac k grounds l ived i n city neighborhoods, people became suspicious and afraid. The lack of human traffic on neighborhood streets and in stores was th e outcome and caused the perception of crime to emerge. As fewer nei ghborhood residents shopped at neighborhood stores, the opportunity to rob or burglarize a store; to s hoplift; or simpl y t o harass the merchants becomes greater. In most instances, crime increased. As crimereal or perceived -became a factor, the avail abi . l i ty of property and 1 i abi 1 i ty insurance became anot her problem. The cost, if available at all, of insurance became prohibitive for small merchants. This further fueled closure, thus contributing to the vacancy rate and, in .turn, the perception of the crime. Outmigrat i on, construction of shopping centers, weakene d neighbo rhoo d economic base, the perception of crime and th e related difficulty of obtaining insurance have had individually and collectively negative affects on neighborhood commercial districts. The result of disinvestment provided the fatal blow to many areas. Financial and government institutions simply ignored the older commercial areas. Loans often needed by the small merchant were unobtainable. The problem was compounded if the store was in a minority neighborhood or m inority owned. T his was not unique to commercial a reas alo ne. Disi n vestment often, o ccurred simultaneously in residential areas as well. Geographic areas were "red-lined" and written off by banks and savings and loan institutions. Public and private c onfidence to reverse the cycle of deterioration was -15-

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Consequently, commercial abandonment cont inued to occur. N eighborhood commercial areas, thus, became c haracterized by dilapidated store-fronts, b oar d ed-up windows, unattrac t ive signs, littered streets a n d other blighted conditions. THE M ORTALITY OF SMALL BUSINESS A s a result of t h e sequence of events, most neigh b orhood commercial districts are unable to attract enough customers to support a healthy business community. Aside from social or economic forces beyond the control o f an individual b usiness person, many small business owners do not possess the re q u i re d m o n e y a n d s kills . Entrepr eneurship is a diff i c ult career path. The typi c a l firm does n o t s ur vive m ore th a n two years. Among the primar y reasons for failu re are t h e following: • Poor location was chosen • Disregard of competition t Too little m oney ( undercapi talization) t Lack of g e neral manag ement k now-how. Conversely, th e businesses which survive and succeed a lso show certain characteristics. These include: t Persistence and preparation. The successful business persons realize that they would not achieve their goals and profits immediately and are prepared, both psychologically and financially, to endure a year o r m ore o f l osses. t Owner s hip e x per i e nce. Throug h previ o u s e xperience in ownin g th eir o w n bus in e s s , man y s u cce ssful owne rs had learned a bout t h e probl e m s of starting a new v enture , and a cqui r e d th e skills n eede d to operate o ne. -16-

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1 Sufficient money. Sufficient capital is required to begin the business on a firm footing and to survive the start-up period before sales pick up. This money often comes from persona l savings. 1 G eneral managerial know-how. This inv o lves having k nowledge and ability in lo cating the business, sales , marketing, control and planning in order to avoid the problems which cau se failure. PROBLEMS AND PERCEPTIONS The major problem facing neighborhood commercial districts i s the cont inuing trend on the part of t h e consumers to do their buying at shopping centers. The appeal of shopping malls to the consumer is around their convenienc e ("one-stop shopping "), safety ( " under one roof"), accessibility (free and adequate parking), and fun and festive atmosphere. N eighborhood commercial areas must seek creative methods of addressing this established trend. Some of the problems common to most neighborhood commerciai districts with regard to undertaking revitalization include: • Merchants have not learned to work together; • Most have a defeatist attitude about the business district. • Merchants do not realize that to compete they must give good service and have employees that make a customer feel that he/she is the most important person to : the business; • Most have constant sales and poor inventory; 1 N o uniform store hours , which is often confusing to the public; • Merch ants generally do not have what the people want; • Lack of evening and weekend hour s ; t Lack of coordination o f advertising and promotional efforts. -1 7-

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Another problem on some deteriorating commercial areas is the lack of adeq uate parking. In a day of shopping centers, fast-p aced life style and c oncern for p e r sonal safety, p a r k i n g facilities must meet at l east f o ur criteria t o b e term e d " a d equa t e ' . F i r st, par k ing must b e a ccessible. If park ing is not close enough to the stores and shops, business will be lost. -In addition, park ing must be large enough to accommodate the quantity of customers needed to make the commercial area economically profitable. Third, the parking must be safe. This means good lighting and proximity to stores. Finally, and most important, the park ing must be free. All shopping centers provide free p a r k i ng. If t h e commercia l areas i n t h e city do 1 ess, they d o so at t heir o w n peri 1. In many ways, the primary problem on neighborhood commercial areas is attitudinal. Reversal of the patterns of disinvestment must begin with dealing with the fears and questions of merchants. The first step is for public and privat e sectors to begi n building a sense of in the future o f neigh borhood com mercial ac tivity . The acc o mplishment of small projects, suc h as co-op adver tisi ng, developing common store hours, etc., can mak e a positive contribution for merchants who are skeptical of the viability of their area. The sense of competition among neighborhoods and between neighborhoods and the downtown business district may be another problem that must be overcome. Every business is faced with competition no matter their location. What is occurring toda y i s competition a m ong various commercia l areas for revitalization in order t o recap t u r e a mark e t t h a t was once theirs. T his is especially counterprod uctive when n eighbor h o o d comme rcial areas compete for scarce public funds to ai d i n publ i c improve ments. Ther e i s also a trend to revitalize th e o lder, in-city s h opping centers. They are generally adding space to compete more effectively with their cousins , the suburb a n malls. -1 8 -

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BIBLIOGRAPHY The First T w o Years: Small Firm Growth and Survival Problems. K ur k B. Mayer and Sidney Goldstein; Small Susiness Administ ration; Washington, D.C. (1961 ) . (Excellent little book on small business problems. ) Neighborhood B usiness Revitalization. T h e National D evelopment Council; Washington, D.C. (1978). (Excellent overview of why neighborhood business revitalization is needed.) -19-

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SECT I C/) a: w 1z w (.) (!' z a. c_ 0 :c (J) 0 a: u.. (.!J z -z 0:
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There are two key words that serve to summarize the competitive advantage of shopping centers versus downtown or neighbor hood commercial dis t r i c ts. T h e y are: ORGANIZATION and IMAGE. While s h opping centers were designe d for a single purpose, neighborhood commercial districts can nevertheless learn from their success ful retailing and m anagement methods. The key is for commercial districts to adapt the highly integrated organ izational style of the shopping center. It is a formidable task because shopping centers use legal agreements to institute their organizational framework, while neigh borhood commercial district s must rel y on voluntary commitments. To survive, neig hborhood commercial districts are forced to organize and learn to compet e as a whole, rather than a collection of diverse interests and retailing m e thods. ORGANIZATION The shopping center is a pre-designed promotional unit with professional management. Its sole purpose is to sell. It provides a cohesive unit which is centrally organized and administered. There is, in most cases, a full-time staff to deal with recruitment and leasing, tenant mix, advertising and promotion and store design : They are generally owned by a develop ment corporation which also owns other investments. Developers have the experience, connections and expertise necessary to finance and operate these large-scale retail operations. Purposeful organization is the key element in the formula for success in a shopping center. Primary among a shopping center's distinctive organization is its centralize d management . The single purpose of managment is to increase sales for store owners and shopping cent e r owners alike. In th e shopping center, each store owner's lease contains binding agreements re quiring the m e r c hant to follow explicit design standards in the finish of interior space and signage, to conform to th e established hour s of operatio n for the center, to participate in the center's joint advertising campaigns and major promotions, to join and -20-

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pay dues to the shopping center's merchants' association, and to pay for regular maintenance of the shopping center's public spaces. Failure to live up to the shopping center's requirements can be ground for eviction. The utilization of centralized manage ment and legal m echanisms for funding a variety of programs designed to increase consumer traffic insures that store owners and shopping center owners are partners in creating the strongest economic result. Neighborhood merchants and property owners must join together to utilize and adapt the best of the management tools of the shopping center. The four major elements of a management program for the shopping centers include: 1. Advertising and Promotions "Increasing sales" is by far the most important part of the management program. Shopping centers typically specify an annual assessment in a lease agreement for advertising and promotions. An advertising agency or specialized staff are retained to develop a sales program, with six to thirteen sales events scheduled on the average. The essence of sale events is good value. Promotions are developed to expose and present the shopping center to the consumer. Marketing the shopping center involves developing a cohesive image of a fun and festive place to shop. Promotions are designed to not only draw people, but to hold them in one location and longer. 2. Community Relations-In addition to sales, shopping centers also foster good community relations by cooperating with a variety of community groups who wish to sponsor activities in the shopping center. These include sc hool art exhibits , festivals, arts and crafts shows, health fairs, e tc. These events cost the shopping centers very little m oney. Theyare often newsworthy where free publicity is obta i ned. The primary purpose is to bring more people to the centers. -21-

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3. Sanitation, Security and Maintenance -Sanitation, security and maintenance are generally funded t h rough a leasing agreement. A shopping center's general appearance is geared around a safe and pleasant shopping environment. Successful shopping centers share a characteristic of commercial districts of yesteryear. Its function is not simply a place t o shop, but to serve as a social and recreation amenity for the community as well. Shopping centers work h ard to maintain a safe and orderly image. 4 . Business Development and Recruitment Business development and recruitment is the single most important element in determining the financial success of the shopping cente r . Management's goal is to keep the stores one hundred percent occupied with the right mix of business and merchandise. Central to business development is keeping the stores and merch andise up to date with consumer trends. Staff undertake market research to assure proper merchant mix, and have control through leases to maintain uniformity in operations. T h e k ey, in most cases, i s th e recruitment of an anc hor store or stores whic h become th e main attraction to ensure consumer traffic. Once a " deal" is made with a key tenant, it generally becomes "follow-the-leader" time with other smaller retailers. IMAGE Image refers to the aim of marketing: consumer recognition and satisfaction. The shopping cente r offers the aspect of "one-stop s hopping" , "free parking", "established hour s of operation" , "fun and festive atmosphere" as their image. While each individual store promotes or adverti ses itself, th e s hopping center also promote s itself as an entity. The shoppin g center is package d as a whole to create a r ecog nizabl e media image. Its logo, anchor stores, common -22-

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design, and other pedestrian amenities are important for establishing easy recognition. As such, the shopping center has become an identifiable place. People know what to expect when the y choose to shop there. T h e shopp ing center has s imply replace d th e m ai n street of yes t e ryear. It is a combinat ion of festivity and shopping . The image o f t h e s hopping center is geared toward meeting more than the basic need of a shopping trip. The atmosphere is conducive for socializing, browsing, and comparing before making a purchase. It has become a multi-purpose designation. It offers a total shopping experience which the consumer is seeking, not just specific merchandise. T h e shopping center is aided in its image making by having a number of national chain stores within a center. These national chains have their own image and attraction for consumers. They have national and sophisticated merchandising strategies and management plans to keep abreast of consumer trends, thereby adding to the image of the shopping center.

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BIBLIOGRAPHY Shop p ing Center Management: Principles and Practices. H orace Carpenter, Jr.; International Counci l o f S hopp ing C ente rs; l e w Y o r k , NY (1974 ) . (Te xtbook of shopping cente rs.) Shopping Center Development Handbook. J. Ross McK eever and Nathaniel Griffin; The Urban Land Institute; Washington, D .C. (1978). (Good general book on shopping centers.) -2 4 -

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1z w w > 0 a: a.. a: 0 u. z -N -z <( (!J 0.: 0

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For neighborhood commercial revitalization to work, a fundamental prerequisite is needed. There is a need for strong, local leadership . Someone must provide the initial creativity and energy to organize suc h an effort. Asid e from leadership, revitalization e ntails a cooperative effort and long-term commitment of a lot of different people. The first stage in any revitalization effort is to establish a strong organizational base. In business revitalization, the cornerstone should be the merchants who stand to benefit the most from a revitalization effort. A revitalization effort should only proceed if a majority of merchants and/or property owners demonstrate a commitment to its development, implementation, and subse q uent m a in tenance. Group s must determ ine from the onset whe ther or not they have the time and energy to see the process through to completion. Neighborhood support is also essential to broaden participation in project planning and acceptance of change. T h e structure of an organization is not an issue. A business group or merchants association can be loosel y defined. It is hoped that as an organization evolves and gains experience in tackling business district problems , it may take on a more permanent structure, such as a merchants association. A strong business district organization must be prepared to play the central role in the revitalization process and to perform a variety of functions which may include: Central Coordinat ionserve as a liaison to all other groups, merchants and property o wners and coordinate entire revitalization process. T h e orga nization must assume the role of a d eveloper to package the revitalization project. -25-

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Generating Support-responsible for introducing and selling the revitalization concept to other merchants, property owners, community and local government officials to reduce their apathy. Repr ese nting B usiness District Interests the city and other organization s need to know that merchants/property owners are involved and support the revitalization effort. A plan without community support will go nowhere. The following are the beginning steps of a revitalization process and are intended as guides for groups to determine local interest in undertaking a revitalization effort. They are presented in a step-by-step sequence that is essentially chronological. Each group may want to look forward or backwards to adapt the information to best fit the situation. GETTING STARTED Determine interest in neighborhood commercial revitalization by talking with fellow merchants, property owners and neighborhood organization(s) that represent the neighborhood where the business district is located. As an initiator, t h e major task is to determ ine interest in participating in a revitalization effort. Do not make statements like "We are going to stop this rampant deterioration," etc., which tends to challenge people. Change can be uncomfortable, even to people who basically agree that a change is needed. Merely state that you are interested in, and want their opinion on and their help and support for a revitalization effort. From the beginning, organizers should appoint someone to tak e minutes so that there will be a record of the group's early days and initial decisions. -26-

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rules, including election of officers, duties of officers, quorum, order of business and date for monthly meeting, membership dues assessment, appointment of committees, among others. The usual standing committees are finance , advertising, promotional events, maintenance, and business development . T h e basis of assessment, other than a possi ble annual membershi p fee, for contribution to the cost of the association's activities, varies widely. The most equitable method is for all merchants to contribute to an activity fund, usually on the basis of each merchant's gross store area. Other methods include formulas based according to storefront footage occupied; individually negotiated assessment unrelated to the merchant's size or sale volume; and combinations of thes e and other methods. Meth od(s) to assess dues and fees for any association activity should be spelled out clearly in membership document. In effect, the merchant by joining agrees to abide by the association's purpose and guidelines. A successful business district is a promoted one. Remember that a neighborhood commercial district's main competition are s h opping centers that incorporate centralized management and promotion. To become competitive, neighb9rhood districts must produce a satisfying image to the neig h borhood consumer and foster teamwork among its merchants. A merchant's association can be the catalyst to develop a business environment that invites customers to come to the business district rather than just to one store. It is simply good business, and one that mutually benefits all merchants. -27-

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HOLDING FIRST MEETIN G Organize a meeting of merchants, proper t y owners, neighborhoo d leaders and other interested parties to cooperatively discuss undertakin g a revitalization progr am. Meeting should result in a decision to proc e e d or not t o u n d ertake a revitalization effort. Topics to cover could include: • pros and cons of business revitalization as way to solve problems, determination of time and energy available, and essentially to decide whether to proceed; • organization structure and commitments to undertake revitalization; • election/designation of "project leader" ; • assignment of tasks, next meet ing date; • assessment of resources available for tasks, i.e. human and material. SET GOALS, SECON D Through the organizational process broadening and making a concerted effort to loo k as professional as possible should be an ongoing activity . Volunteer participation is more apt t o be gained by a group if volunteers are confident the group is well-led and actually see that the group is doing something. The second meeting should be held to discuss and analyze obvious commercial district problems and to set both program and organizational goals. Goal setting allows the group to draw plans according to the needs and desires of people involve d . T h e grou p should come t o a "consens u s " on t h e revitalizat io n effort. " Consensus " is used instead of "majority" . Majority implies a numerical agree m e nt, w hile consens u s represen t s gener a l a greement , c ompromise a n d u n der standin g by all peopl e inv olved . F o r comm e r c i al revi t alization, t h e m ore people in agreement, the better chance of success. Topics to cover could include: -28 -

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progress reports on previously assigned tasks; -set goals for organization/revitalization effort; determine need for t echnical assistance ; -determine initial revenu e need for planning and d esign ; -assign tasks. New people should always be welcomed. Leadership should watch out for new faces, welcome them assertively, and briefly update them on accomplishments to date and assign them to do something. DETERMINE PROJECT SCOPE The key is to understand how a commercial district relates to and reflects the community around it. Let the natural facts of the setting be the guide as to where the boundary lines are drawn. The boundaries should encompass a large area on both sides of the street to include the adjacent residential area directly affected by the commercial district•s improvements. Reducing the impacts of improvements could occur by integrating design into residential area abutting the business district. This will win many neighborhood friends. Realistically, cost and available energy might be the limiting factor. TECHNICAL ASSISTANCE Many business groups may not have the funds to hire skilled or professional help; yet some parts of a revitalization effort could utilize professional help. The question is where do you turn. Help Yourselves! The best place to turn is inward-to the members of your neighborhood. T h ere are many people (businesspersons and residents) in your neighborhood who are able and willing to be of service to a neighborhood effort. The key to attracting a volunteering professional -28a-

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is to try not to ask for his/her special help until it is really needed and do not burden any individual too much. Help f rom t h e outsid e! Maybe some of the help you require is n o t ava i lab l e i n your neighb o rhood. Mos t c ities have tech nica l assistance organizations which can help in identify i n g other sources and/or professionals residing in your neighborhood. Volunteering professionals work best on projects of a specific, short term nature. People are more apt to volunteer and feel a strong obligation to carry it out if they know exactly what is expected of them. In hiring professional assistance, the business group should develop a scope of services document and meet with a number of technical assistance providers. Both parties should agree on the scope of the project, tasks to be undertaken, schedule and cost. BROADENING SUPPORT Broadening support for any revitalzation effort should be an ongoing activity, especially in the early stages. The key is for the business group to establish an impression of a dynamic and successful organization. One that is serious about successfully undertaking a revitalization effort. Some initial and easy projects to organize could include: • write articles on the project for neighborhood newspaper; • logo/name contest for business district; t clean-up day for business district; t neighborhood sales day, etc. -29-

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MERCHANTS' ASSOIATION The formation of a merchant's association can be the strongest single e l e m e nt i n a s u c ces s ful commerc i a l revitalization e f fort. T h e importance of gettin g merch ants involved in commer ci al d e v e lopment or any o ther rev italization activity cannot be over-emphasized; unless they are involved, merchants will merely accept what is offered. A commercial business district must act as a unit in order to improve its image in the community. An association acts as a clearinghouse for suggestions, ideas and programming of promotional events, and it can also serve as a forum for handling complaints and differences of opinion. Operation of an association should be left largely to the merchants. In some cases, owner participation is advantageous, especially so if he/she also operates a business within the commercial district. The merchants association can be charged with a wide range of activities joint advertising of the business district, including the development of a business district name and logo and its use on advertising mastheads, letterheads, bill heads and statements; special business district promotion; seasonal events and decorations; enforcement of park ing regulations, particularly those regarding employee parking; and busi ness district news bulletins. Other activities which the association may want to handle could include: signage control, maintenance of common areas, trash collection, hours of operations, retailing mix, and cooperative insurance and security. In general, associations work through committees to carry out association activity. An association may be organized as a profit o r non-profit corporation wit h c harter and by-laws. Each has its own advantages. Regardless of the organ izational structure, some sort of formalization is needed for it to become more effective over time . It is suggested that informal associations need to develop written guidelines or bylaws to set forth all pertinent information and -30-

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BIBLIOGRAPHY A ction Now! A Citize n's Guid e to B etter C o mmunities . R ichard W. Post on; Souther n Illinois Press, Car bondale, IL (1976) (Boo k discuss es how to generate neighborhood in v olvement i n t h e community d evelopment process.) Non-Profit Cor orations, Or anizations and Associations. Howard L . Oleck; Prentice-H a ll, Englewood Cliffs, N J 1 9 7 4 . ( Compreh ensive text that explains how to form a variety of n o n-profit organizations.) The Board of of Non-Profit Organizations. Karl Mathiasen III, Planning and Management Assistance Project, Washington, D.C. (1977). (Handy little booklet on the organizational duties and responsibiliti es o f boar d m embers. ) B u i ldin an Effec t ive B u s iness A ssociatio n for C o m mercial R evi t al izatio n. Philade lphia City w id e D evelop m ent C o r p., Philade l phia, PA 1979 ( Primer for developing and operating a business associati on. ) -31-

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Each commercial district faces its own unique set of problems and potential. The task within a revitalization process is to identify problems and n ee ds, d e velop strategies for s olving t h e m , and work out a timetable or plan for addressing them. A busi ness district that plan s for the futur e can expect to realize many benefits. a revitalization process should be an activity that brings people together. It creates a forum for merchants, owners and residents to express their concerns and to present their ideas for district improvement. The process provides a method for decision making and a rationale for future decisions. Whatever the particular problems and needs a commercial district faces, merchants and owners should be aware that other groups have encountered the same issues, to solve them, and through their planning efforts, been successful in revitalizing their districts. The following revitalization process draws on experiences of others to help groups assess where to start and plan for the future. The steps are intended as a guide. They focus on the physical improvements of a business district. The procedures can also be followed to determine the problems and needs of other revitalization activities, such as promotion, financing, etc. It becomes a way of systematically undertaking problem solving. Remember, each commercial district is unique and may require variations on the , process described. BASE DATA I nformation gathering is a crucial s tep in any re d evelopment process . Information is necessary to identify problems and develop ways to solve them. Business districts cannot determine where to start within a revitalizatio n program unless problems and needs have been identified, analyzed and prioritized. In collecting data, the following steps should be k ept in mind: -32-

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1. Determine your information needs. 2. Locate t ools and data sources. 3. Collect and analyze relevant data. In commercial revitalization, a lo t of practical information can b e collected via obse rvation. Visua l analysis can provide information o n the character of th e district, ques t ions of transportation, traffic, and pedes trian circulation and street uses, all of which must then be integrated with a revitalization scheme. It is useful to break down information into several categories; groups may add depending on their circumstance. • Circulation: D o people have e asy access to the district? How do most shoppers arrive? Car, bus, walk, etc. • Traffic: Check the volume of traffic and pedestrian. Find key generators of your shopping traffic. Is parking a problem? • U ses of land: Study the buildings in your district. Evaluate their architectural style, scale and physical condition. • Character: D oes your district have a cultural, ethnic, aesthetic, and historical uniqueness? Capitalize on the distri ct's assets. There are benefits to historic designation and preservation. • Activities: What are the daytime and nighttime uses of the district? Activities will determine how people use your sidewalks. Note what people are doing and where. • Site survey: Existing site drawing illustrating current conditions, problems and m easurements. Map to provid e a clear, in-depth under standing of the problem, especially with buildings and condition of public right-of-way. Good mapping can pro vide a quick way to assess nee d for improvements. -33-

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• Business characteristics: Do stores have common opening and closing hours? How many stores have an advertising plan? Develop a profile o n stores l o cated in t h e district. Determine common prob lems and operating styles. • Consumer survey: Determin e the shopping habits and attitudes of t h e district's trade area. Ask shoppers what they think about the district and kinds of improvements that would make them shop more in the district. Collecting data should not be restricted to your commercial district. Visit other commercial districts that have undergone improvement to discern and catalog what does or does not work. This is especially helpful in determining a compatible mixture of stores. The key is t o profit by other people's mistakes or successes. There is no definite point where data collection ends and analysis begins. It is helpful to make data analysis a separate process from data collection. Generally speaking, the product of this step s h ould be a site drawing that illustrates existing problems, assets and measur e ments . Combined with other revitalization assessment data, this is a key tool for understanding the district's physical character, problems and potential. CONCEPT DEVELOPMENT Now that you are familiar with the commercial district through data collection and analysis, groups are prepared to focus on e xpressing the need s and desires of t h e district. This step allows the group to identify the answer to a basic question what k ind of improvements are necessary? Storefronts, streetscape, better retail mix, etc.? Concept development is a goal setting process whic h should provide a general idea of what the group wants to accomplish. -34-

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Once a goal has been establi shed, the group can then express their ideas on how to reach the Example: if crime , real or perceived, i s a problem in t h e commercial district, a street-related goal m i ght be: To mak e th e commer c i a l district s a fer for shopper s . This goal may be r e a c h e d b y adding to the street-pedestrian lighting fixtures, moving bus stop to safer, more accessible location, better storefront lighting, m ore commong store hours , etc. The major element to consider in concept development is image. A n y planned physical or business improvements will alter the business district's existing image and appearance. It is important to reac h a consens us. Remember, merchant s and property owners as w ell a s adja cent residents will have to live with the alterations. Physical improvements s h o uld be closely related to the existing c haracter of the buil dings and surrounding neighborhood. PLAN ALTERNATIVES Developing several different revitalization schemes brings order to goals and how i ndiv idu a l plans are related to th e whole. Alternatives pro vide a framework to so lve a problem in d ifferent ways. Each concept alternative s h ould give general consideration to how the group thinks about their public right-of-way, building, advertising, etc. Alternatives can visually illustrate the impact of design, such as street furniture placement, consideration for maintenance, rough cost estimates,"degree of construction difficulty to mention a few. REVIEW AND EVAL UATION At this point th e group is ready to derive the best solution from among revitalization alternatives, giv e n available resources. The intent of t h e review and evaluation stage is to present alternatives in a suitable public forum to solicit impressions and feasibility input. The result may be new -35-

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information/ideas which enable the group to refine alternatives into a final plan of action. It is a decision-making setting, one that leads to consensus on the best overall solution. PLAN MAKI N G Plan making represents the synthesis stage whereby alternatives come together to shape a solutio n for every part and component of a revitalization scheme. Integration of evaluation information is the key factor in determining design and other revitalization activities. The plan, whether design of storefronts, streetscape or promotional activities, should satisfy the requirements of three parties: the merchant group itself as th e user, the adjacent neighborhood also as the user, and the law as stated in lo cal codes. Upon completion, most design plans should be reviewed by appropriate public work agencies. Their review and evaluation at this stage will reduce the amount of changes for design specification drawings. SPECIFICATIONS AND COST ESTIMATES Preparation of final design specifications and estimates i s the major task at this stage. Bid estimates should be obtained on all design elements. The degree of design specifics for either storefronts or streetscape is dependent on requirements of obtaining contractor bids or pulling the necessary building permits. At a minimum, the specifications drawing should illustrate dimensions, measured location and placement of design elements of a streetscape and construction drawing (s) for storefront as the case may be. The group's next step is to develop a realistic implementation schedule and plan. By breaking a revitalization scheme into tasks, the group can get -36-

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a fairly good idea of how long each activity will take and set a date for its completion assuming public or private financing. Utilizing tasks will also allow the group to refine its assign workload, identify possible problems a n d locate specific reso urces. The key to implementation is selling a commercial district's revitalization plan to appropriate private and public financing sources. Grantsma nship might be required. A business district has three options for financing improvements l) private financing, 2) public financing, and 3) a combination of public and private financing. Evaluation and Follow u p Evaluat ion should never be an afterthought, it should be consciousl y applied at the onset and throughout a revitalization process. Primary evaluation rests with determining whether or not more and better business has occurred. While this can be done informally, every activity should be assessed as to its effect on business. A commercial distric t must stay on target and direc t its lim i ted resources and energy in t o th e area where change is most needed. Adaptability and flexibility are possible only through evaluation. -37-

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GETTING STARTED establish a core group appoint a project leader set goals of group THE REVITALIZATION PROCESS PROGRAM ASSESSMENT r-----------------------------, _-j L [ _ _ __ ___ c _ o _ l _lect Q l _____ conduct relevant surve_ v _ s __ ___, .J I PROGRAM DEVELOPMENT PROGRAM IMPLEMENTATION r--------------------------------, ,--------evelop alternative plans/strategies for ! I ! I .streetscape .building improvements .signage guidelines .business development .promotion 1 9---q [ ___ finalize plans/strategies ] I I I --v -----------• ' develop financing strategies formalize merchants association implementation of plans '\? monitor, evaluation &

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BIBLIOGRAPHY eigh borhood Commercial Revitalization. Adrienne . Levantino; National Association of H ousing and q e deve lopment Officials, D .C. ( 1 9 7 8 ) . (Book geared to w ard government officia l s invo lved in commercial revitalization.) The Citizen's Guide to Planning. H erbert H . Smith; A merican Planning Assocation; Chicago, IL (1979). (Helpful book p rov id es a general backg round on the planning process for the non-professional.) Neighborhoods: A SelfH elp Sampler. U . S . D e partm ent of H ousing and U rban Development; Washington, D . C . ( 1 979) . (Handbook illustrating actual projects with step -by-step instructions on hov1 to do them, includ es a c hapter on commercial r evitalization.) The Practice of Local Government Pla nnin . International City anagement Association; Washington, D . C . 197 4 ( T h e " Bible " for planning professionals.) 39 -

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_J < 1z w 1-0 c.. z o . 1- w a: z (,/) (f) w (/) (f) <(

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Assessing a commercial area1s potential for revitalization is the most crit ical phase o f a neig h borhood business revitalization process. I n many ways , i t i s also the mos t tec h n i c al and tim e consuming phase of the pro c ess. Probl e m identification a n d sub sequent a n aly s i s i s not ea s y a s th e roo t causes of d e terioration a re o ften complex and interrated with other forces outsid e the control of a neighborhood business organization. T his section is intended to provide the reader with an overall view of some of the analytical tools available to identify development needs and opportunities within a neighborhood retailing area. In most cases, these studies are carried out b y a technical cons u l tant. However , it is our belief that neigh borhood-based busines s organ izations should be abl e to complete t h e studies successfully without hiring a professional. Some technical assistance may be needed, but groups should need after reading some of the publications mentioned in the bibliography of this section. The bibliography contains information on self-hel p books that use step-by-step appro a ches and are written for neig h bor h ood-based organ izations. TRADE AREA STUDY ( S HOPPER SURVE Y ) A trade area is the geographic area from which a business district draws its customers. In a trade area survey or market study, a shopper questionnaire is used to provide a business district with information about their customers, customer likes and dislikes of the business district, and what would encourage t h e m t o s hop m ore . In a neighborhood setting, it is usual to consider th e surrounding neig h bor hood as t h e primary trade area, unless t h e business district al r ead y c aters to a much larger geog rap hic market. T h e study1s basic funct ion is t o p r o vide inform a t ion on estima t ing t h e size and boundar i es of th e loca l market area and obtain dat a o n local shopping demand and patterns. 40-

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Once this information has b een analyzed, the characteristics of a trade area can, in turn, be used to assess potential consumer demand for existing and/or new goods and service in a commercial area. Generall y , a shopper survey i s d e velop e d to supply answers t o the following: 1. What problems con sumers perceive in th e business district and what improvements they consi der to be the most important ; 2. What the general i mage of the business district is; 3. What are the shopper's spending habits and patterns are with respect to the business district; 4 . How often does the consumer shop and for what goods and servi ces ; 5. What influence media advertising has on their shopping decisions; 6 . Whether existing store h ours are compatible with their sc hedule; 7. What additional retailing outlets or services do they think the trade area needs; 8 . What are the socio-economic characteristics of the consumer and his family; 9. Where do they shop regularly f o r a variety of goods and services; 1 0 . What are their main considerations (pr ice, convenience, quality, etc.) when they purchase a particular product. An information sheet on surveying is included in the Appendix, as well as a sample consumer survey. Shopper surveys are generally conducted on the street, in person with the aid of a one or two page interview form. A residential surve y may, however, be more appropriate if a business district considers the surrounding neighborhood as its trade area. A survey of this type can be dropped off and picked up by v olunteers and provide a representative sample of the trade area. The detail, sample size and cos t will be factors in determining whic h typ e o f surveying tech n ique to undertake. -41-

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Analysis of survey data should provide a set of information by which a business district can better understand itself and the market potential of its trade area. Some of the standard information obtained is: Trad e A rea S urve y f u rnish e s data o n t h e geog r aphi c b oundari es o f the mar ket a r ea ; t h e mark e t area can b e determin e d b y plotting th e add r es s e s of those surveyed on t h e map. D etermining the trade area should be done cautiously. In inner-city situations, many low-income areas are often underserved, and residents will travel surprising distances for quality and lower prices. Public transportation routes may also be a factor in determining the shape and size of trade are as. Buying Power Esti m a t e Once a t rade a rea has b een m apped, o ther statis tical sources can be used to estimate how much money residents coul d theoretically spend on specific goods and services. Estimates on family expenditures for various goods and services can be obtained from the U.S. Department of Labor. (See Appendix for information sheet.) Expenditure figures for various goods and services can then be multiplied by the total n umber of h ouseholds in t h e trad e a re a to obtain total buy ing power. T his total provides the basis for estimating potential buying power or market for the business district. The problem is to determine the business district's capture percentage of the market for various goods and services. To determine sales potential or capture percentage, the following should be considered: • Assess the competition: Examine th e c haracteristics of nearb y commercial areas to determine w hether or not they are satisfy ing the local demand for certain good s and services. 1 Assess the shopping habits of the trade area: Oetermining why and how often c u stomers shop at a business district will provide clues to refine capture rate. Other socio-economic information, 42-

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such as number of elderly, mobility, public housing, etc. is a 1 so useful . t Merchants' fee 1 i ngs about market potentia 1 : In most cases determining market potential is a matter of judgment based on informal evaluation of facts and k nowledge of the trad e area. 1erchants are the single best source and their judgment shou l d be taken into account. In general, market capture rates for convenience goods tend to be higher for neighborhood-oriented commercial areas. New and attractive facilities can change th e rate upward. The key is to develop a set of conservative criteria w hen determining a business d istrict's sales potential. Retail Space Demand/Estimate s Determining how much retail space can be supported by the potential consumer demand of the trade area for the business district requires correlating sales volume with retail square footage estimates. The prime source for this information is the Urban Land Institute's Dollars and Cents of Shopping Centers. See Appendix for information sheet. Estimate s of t h e amount of square footage of retail category that could be potentially supported by the trade area is found by dividing the estimated sale volume by the appropriate sales per square foot figure for retail category. Comparing potential with actual square footage of retail categories can provide an assessment of how much of the market has been saturated or could be considered as a potential for business expansion. Because market studies and their analysis are based upon many subjective findings and judgments, there is potential for error. It is bes t to use conservative estimates which provide a good "rule of thumb" indicator of revitalization potential. The market or trade area study serves as the -43-

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starting point for creating a business development plan. The study is also an excellent tool for attracting new business. A good business person will be interested in the facts and figures w hich the study provides. SURVEY OF MERCHANTS AND BUIL D ING OWNERS T his s u rve y i s designed to det ermine w hat local business peop le t h in k about revitalization opportunities, assess their interest and capacity to participate in a revitalization effort and to obtain detailed information about their business. The survey should provide a clear indication of whether or not merchants and property owners will act collectively to improve t h e business district. Merchants , as a group, h ave t h e b es t knowledge and " feel " for th ei r business district and can provide valuable insights of what it will take to improve it. The focus should be on attitudes about local business problems and opportunities f or improvement. A by-product is that the survey provides a way for business people to find out if their individual improvement plans will be complemented b y t h e efforts of other businesses. It is important that businesses work together to pro m ote compatib l e devel opment and avoid haphaz a r d changes. The merchants survey can also be a valuable source of data about the number of employees, the amount of square footage in each building and sales volume of each business, etc. A sample survey . questionnaire is included in the Appendix. VISUAL ANALYSIS O F PHYSICA L CHAR ACTE R I S TICS A deteriorating business district often goes unnoticed by people who use it. It seems as though once a person becomes accustomed to the fact that something is in need of repair, it can then be easily ignored. A business -44-

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person may not realize that continuing neglect of a business district's physical appearance can shape customer attitudes. For this reason, shopping centers make every effort to k eep their facilities well maintained. Run-down storefronts and interiors, carelessly prepared window displays, and lack of parking are just a few of the physical factors that influence customer attitudes about shopping. A visual analysis of a business district can quantify and define problem areas which might affect customer attitudes. In most cases, an outsider should undertake the analysis to assist the business community to "see" itself more objectively. A visual survey should be plotted on a series of maps or drawings. A composite slide show to illustrate positive and negative elements is another starting point for analysis. Items to be surveyed and analyzed include: Assessing the characteristics and condition of storefronts Someone with a knowledge of architecture should determine whether or not the business district's storefront can or should be rehabilitated. Survey should focus on positive and negative points of buildings' architecture and condition. It should also note vacant storefronts, boarded-up windows, or other unsightly characteristics, and signs should be inspected for their aesthetic appeal and compatibility to others. Assessing the need for public improvements A civil engineer or landscape architect should inspect the sidewalks and street for safety hazards and determine the need and potential for streetscape improvement. Appraisal should note problem areas, such as broken sidewal ks, curbs and gutters, and catalog existing streetscape layout. A rough cost estimate to bring the streetscape up to safety standard s and better appearance to encourage more pedestrian use could also be provided. -45-

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Assessing how the streetscape works -Someone should catalog observations of where people congregate, park, etc. and note other positive or negative activiti es occurring on the street. Estimating the square footage of space devoted to different k inds of retailing activitySquare footag e estimates can be obtaine d by a s k ing merch ants and/or property owners. Fig ures s hould be plotted on whatever drawings are used. 46 -

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rl---1 1"--+--+-__ -/-.;-to F\x\ Ill .f\ \JJ \) \0 EXAMPLE VISUAL ANAL VSIS OF BUILDINGS (not in scal e )

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-1' • ( , J-Otl r..v otl {O"PtJI ,----------4tVO rt ""' . -------1--. --wJ ( fA t I t-1{_ 1 A rzcl\l IN I CUM? lHJ'IJAIJfC t') t\Ul...) 5()0 SQ. fl. I 100 SQ. f1. f.; . :;. ... p-r: I I !.--IQJJ\.L -5t\q_;. I .St\0 G I Vk{...f\N r A-p(. f'L-1 ... \'. ..l----------'-------... -. -----... l.,oltCf.Z-• --. . -t,..IC-11-tl .... ( \. , ) . : __,. . . i I i I l _ J VISUAL ANALYSIS OF STREET ( n o t I n scale)

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BIBLIOGRAPHY Neighborhood Commercial Revitalization. National Council for U rban Economic Development; Hashington, D.C. (1979) . (Excellent overview on the commercial revitalization process . ) Analyzing Neighborhood Retail Opportunities: A Guide for Carrying Out A Prelimin ary Market Study. Wim \
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Shop ping in America has become increasingly a recreational activi t y i n which p e opl e shop, b rowse , eat, a n d relax. Suburban m alls k now this and n ur t u re a recreational image throu g h d es ign f ea tu r es , s t o re variety and s p ecial a menities . Good d e s i gn, w h e t h e r at a mal l o r n e igh borhood comme r cia distr ict, is simpl y good bus i ness. and carefully maintained commercial distr i cts improve t h e image of all t h e busi nesses wit hin. I t a l so offers th e publi c a n alternative shopping experience. The k ey to "good design " is to capitalize on t h e com mercial district's a sse ts. E ac h district i s unique, having its ovm se t of a rchitectural features, signs , window d i s p lays, graphi cs , color, etc. Brin ging vis u al ord e r to th es e physica l elements w ithout d es t ro y ing th e natural diversity t hat prod u ces a variety and interest which malls cannot match shou l d be a mong the goal s of any revitalized commercial district. In many ways, the imple mentation of a physical design plan is at the heart o f any c o mmercial revitalization effort. It provides a needed change to visibly alter th e d i strict's image of d ecline. Shopper s a n d investm ent respond to s igns of posit ive activity. For this reason. phys i cal imorovement i s a good place to begin a commercial revitalization effort. Physical improvements work best when the approac h is gradual so that individual efforts complement and on each other. Taken together, these small improvements can build the momentum for implementing other components of a commerci al revitaliz atio n p r ocess. D es ign can be divide d into two bro a d sections: l) t h e treatment of i n d iv idual b uildings and combinations o f structures, 2) t h e f urni s hing s o n th e s t r ee t t h e special public improv ement amenities p r ovid e d to c reate a pleasa n t and safe s h o p ping envir onment. Desig n s houl d be b ased on u n i ty , b u t s houl d not lead to a ster i l e sa m eness o f al l t h e bui l d i ngs. Rather, unity 50-

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should come from a simple system of binding the individual parts into a larger composition with roo m for variety . Improving a commercial district to day will re quire care, planning and a c o o p erative effort to insure that indep ende n t improvement s a re c ompatibl e to make any measurable difference. This section is intended as a helpful guide t o inv olve mercha n t l ea dershi p in the formulatio n of a des ign plan. Design generally requires t h e services of an architect who can coordinate storefront and streetscape improv ements with the merchants association. DESIGN PLA Revitalization of any commercial area requires a sound design plan to combine public improvements, individual business rehabilitation and other physical changes in a complementary way. Many city programs have found i t useful to not only develop an overall plan for a retail area to be revitali zed, but also to insist on mandatory standards to guarantee uniformity of design implementation. Cities have used a variety of incentives and sanctions to imple ment d es ign pla ns. For our pur poses here, design standards are not re commende d because of their enfor cement difficulty and potential hazard for causing dis harmony among merchants and/or property owners. Instead, the formulation of an d es ign plan i s encouraged. If developed by a professional designer through the democratic participation of merchants, property owners and neighbor hood residents, the plan, in effect, becomes a consensus from which to change th e district's appearance and image over tim e . h e key elements of a design plan a re: t building/storefront design s • signage t window treatm ents t streetscape d es ign -51-

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BUILDING IMPROVEMENT OPTIONS Buildings, whether old or new, are one of the major characteristics of a commercial distri ct. A s s uch, t e y are important physi c a l assets to th e distric t and community a s well . T hey are also a k ey c omponen t to any s uccessful commercia l revitalization e ffort. T h ei r use and physical conditio n pla y a substantial role in the economic and visual well being of a commercial district. Care should be taken to retain and enhance this asset. T h e more so given the fact that most older business districts were built in an era of human warmth and scale architecture. The following building improvement options offer points to consider w hen assessing how t o begin t hink ing about design. 1 . Maintenance and U o k eep T h e bes t way to guard against the costly exp ense of major building repairs is to establish a maintenance program for both interior and exterior upkeep. Rehabilitation of maintained buildings often only requires cleaning and painting. Maintenance should b e systematic, starting w ith the roof, windows and doors. Improvements here will not only help maintain the buil d ing but mak e the b u i l d ing more energy efficient. 2 . Renovation and Rehabilitation These are processes of returning a property to a state of utility through repair or alteration. Renovation generall y means the upgrading of a building's exterior appearance while rehabilitation refers to repairing a building's interior and mechanical systems. Both mak e possible an efficient c o ntemporary use w hile preserving those featur e s of t h e p rope r t y v vhich are significant t o i t s his torical, arc h i t ectural, and c ultural val ues. 3 . R es to ration A p r o cess of a c c ur ately rec over in g th e for m and d etails of a property and its setting a s it appe a red at a particular period of time 52-

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r I by means of the removal of later work or by the replacement of missing earlier work. It does not mean that buildings must be pres e rved as museum pieces. Restoration is a practical approach which offers a way to retain a unique link th e past. 4 . Recycling and Adaptive Reuse This involves converting a buildin g from its originally intended use. The building is given an entirely new use which is more productive and profitable. 5 . New construction -It is important that new construction b e compatible with its nei ghbors. A new building s h ould fit into this context. / 't> R/1(1\ \}E. C..OR:N e. u• N. DIJ -1 _ ... ( ,1( t>o-.-1 t>S N.MoNf
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DESIGN HINTS TO CONSIDER Storefront improv e ments are often th e least expensive and simplest elements in a comprehensive commercial revitalization design sche me. The k e y o private property improveme tns is to utilize exsting buiiding ass ets to t h e greatest advantage . Following are six basic guidel ine s to follow Nhen considering facade/building improvements. They are, briefly: 1. Respect the basic form or architecture of t h e building. Simply, "form" describes the general shape of the building. Changes in form, past or planned, generally are not appropriat e in that it fragments the facade and th e visual unity of t h e building. Reiate g round floors to upper levels. 2 . Use the original materials whenever possible, or se lect new materials that are compatible with existing ones . Original materials s hould guide any additions. Avoid the introduction of imitations. 3. U se proportions that are compatible . The height and width of standard windows, in relationship to one another, establish es unity. Simil a rl y , specific dimens ions t hat are repeated along t h e street provid e a sense of order to t h e business distr1ct. 1n1s 1s especially important with windows, doors, and d ecorative elements. 4 . Choose colors for the entire buil d ing facade as a s ingl e composition. Color can se t the tone. The y may be bright and playful or muted and restrained. Trim colors can contrast with background color to accentuate building d etails. Limit the number of colors. U se ton es that relate well to prevailing colors on the street. 5 . Maintain building decoration s whenever possible. Decoratio n may includ e cornice moldings, brick patterns, carve d or cas t buil d ing ornaments as w ell as awnings and fram e s for doors and windows. These provide a sense of c hara cter and connectio n wit h the past. As building assets, th e y need to be carefully maintained .

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6. Install signs that are related to the rest of the facade. A commercia l sign is an essential part of a facade renovation. The work invested in a car e ful s torefro n t improvement can be wast e d i f a n i naopr opriate sign is th e n moun t e d on t h e bui ding. Signs should be compa ibl e with th e building in their location, proportion, mater ials, col o r . illumination and lettering. WINDOW DISPLAYS People walking down the street will get a good or bad impression of a business by loo kin g through its windows. Therefore, it is important that window displays are attractive. Displays are a functional extension of a store's interior display space. Quality display windows are essential to the storefront as an attractive sign; they help to not only advertise merchandise but can also serve as an exciting invitation to shoppers passing by. Some hints to improve window d i splays are as follows: 1 . Define the buying audien ce. Gear the display to this group. 2 . What do you sell? The diplay should indicate the merchandise being sold. Let the product speak for itself. U se few words. K eep signs to a minimum. Be selective in the number and variety of products to display. 3. T hink of the window display as a large picture frame. The display should be composed as a picture. Color scheme is important . Limit the number of colors, as too many colors can be distracting. (Your merchandise might suggest a color scheme, as might t h e season of the year.) 4 . Temporary window signs announcing a grand opening, a seasonal sale or special promotional event often become a necessary part of the window disp l a y . K eep the message content simple. As a general rule, temporary window signs should never occupy more than of the total glass areas of any individual display window.

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5. Provisions for directional artificial illumination should be considered essential for most store display windows. Display lighting should be controllable in intensity and flexible in plac ement to allow for special accent or highlighting of p roduct displays. 6 . An option is to use the store interior a s a window display. Thi s allows the passerby to look in and see the items in the store itself. In this case, the store's interior must be neat and attractive. 7. KEEP IT SIMPLE, BUT INTERESTING! ADS Some simple guidelines are: • Clean up windows. • Remove expired advertisements . • Remove unnecessary advertisements. • Often ads placed in windows do nothing more than clutter the appearance of the storefront. • Avoid large or repetitious advertising signs. • K eep written information on window signs to a minimum. • If ads are necessary in the window, an appropriate placement for them is at the bottom of the window (unless it extends to the floor) or some other reasonable uniform area. Hherever you place this "ad strip" , ensure that the store owner can see out and shoppers can see in . Talk with neighbors. If everyone places written material in this space it can help to unify the appearance o f the b loc k . • If window display is attractive, use the rule. letter painted o r placed o n ---.. ---. j logo of shop integrated with sign _/ provides convenient symbol for identifi catio n

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SIGNAGE A store sign should complement t h e architectural elements of the storefront, not ohsc ure them. It is an important part of any stor e , because the sign identifies the busin ess to the passerby . Signs can add to or detract from the visual harmony of the busines s district. Signs should be tasteful to beco m e an asset to the business district. Signs serve t h e functions of informing, identifying, and c reating visual harmony along a street. Signs that are too large or too small, or ones which are gaudy or extravagantly designed, or too many signs close together can detract from a business district. Some useful guid el in es to consider are: • Have signage designed by a professional designer and use the best sign painter you can find . Never have an amat e ur paint your shop sign. • Signs applied to wind ows should not cover more than 25% of the glass in the w indow. 1 Lettering on signs should be simple and w ell pr oportione d . Faddish or complic ated lettering forms should be a void e d . • Sign colors should be selected to harmonize with the predominant colors of the building and its neighbors. 1 Signs may b e inco rpora ted i n t o can o p i e s o r a w n ings. 1 Sign s p ro j ecting from the s urface of a building s hould b e proportional to the building t o which th e y are attached. , Lighting of signs s hould b e e xternal. Subdued lighting which illuminates t h e sign and at least a portion of its host building is an attractive and sophisticated approach to lighting a sign. t A sign should b e placed so that it c omplements the architecture of th e buildin g and business it identifies. It should never obliterate th e building's archi tectural features. • N ormally one sign per busi nes is s ufficient.

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-I ..-0 0 j •' '" ' ' / ,; / ' I I ' ' / ' ' ' / I // I / I / I 1 I I f8 B El / / / I I / ' /'/ I / ' ' ' JD (} / 0 0 0 0 ._, --' . . .. .. . ' "' IJI 10 01 )0 or 10 .
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STREETSCAPE DESIGN A n other m ajor element of any neighborhood commercial r evitalization project i s t h e various rublic improv e ments whi c h complem ent and enhance the improvements made b y businesses. T h ese can include street repairs, new lighting fixtur e s , t ree planting and o t her ped es t r ian a menities. The " street s cap e " i s a t erm referrin g t o a n area t hat is visible t o a person w a lk ing or driving o n a give n city stree t . It d e fin es t h e r e lationship of buildings, shapes , space and tex t ur es on t h e street, so tha t t h e sum of all t h ese elements b eco m es more than t h e collection of th e individu a l parts. E ac h ame n ity (illustrations ) added to t h e street should e n c ourage further pedestrian use. T h e r e are t h ree gene ra l princ ip l es to follo w in selecting d es ign e lements: 1. Choose materials that are s ympath etic to the s u rroun din g buildings. Pay attention to color, texture and scale. Remember t hat most of the elements shou l d b lend wit h t h e street scene. E xpress t h e natural charac teri stics of th e m aterial whenever possible . 2 . Coordi nate street furnitur e and m aterials s o t h a t i ndividual item s a p p ear a s m e mber s o f a fami l y . U s e standard dimen sions, or modules, to simplify construction and t o g ive a v i sua l unity to t h e elements . 3. Place the furn i shings where they are most needed. W here do people gather, and need places t o sit and talkj W here do p eople wai t for buses o r rid es ? C h oose locations o n t h e sidewalk t h a t will n o t obs t ruc t movement. lotice if each location i s i n th e s u n or t h e shad e and protected fro m winds. What would be most comfortable to you ? 60 -

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Planters The plant survival rate is highest when theyare planted directly into the soil. This is not always possible. Where it is not possible to plant directly into the soil, concrete or wooden planters may be used . Planters should be small so as not to impded pedestrian traffic, yet h eavy enough to p reven t theft. They should also be similar for a unified appearance. Trash Containers An attractive and litter-free block requires functional trash receptacles. These containers should have covered tops and sealed bottoms to keep contents dr y and out of at all times. Simple design selections s h ould be compatible with benc h es and other furnishings. Place containers at places where people lingar, such a s near b e n ches, bus stops, etc. Hinged-Door Top Semi-Open Top 61. . . . :. LJit-e . . . . .

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Street Trees Street trees can be excellent unifiers for a commercial strip, providing shade and scale for the pedestrian and soft ening effect on h e har s h environmen t of c o ncrete, asphal t a n d bri c k . T h e y c a n for m a vis u a l sens e o f c l osure and psyc h o lo g i cal buf fer from t h e street. Select two or more species of trees and alternate their planting along the street. Paving Walkwa y paving of a distinct pattern can make a significant contribution to the neighborhood business district's unity and visual richness. Paving units should relate to building styles and materials. A simrle pattern and common paver size are most effective. Brick paving is expens ive . A compromise is to combine brick and concrete using the brick to frame panels of concrete or to create a band to separate the sidewalk from the street and to designate a planting strip for trees. STANDARD 4" x 8" PAVERS ALTERNATE 8" x 8" PAVERS RECOMMENDED 8" x 12" PAVERS Hindow Boxes Hindow boxes can be used to enhance the front of a building and provide additional color. They should be designed i n two pieces: an outer shell, coordinated with color and architectural style of the building and color and material of other street furniture; and an inner pan to hold soil and plants. Boxes should be attached directly to the building for

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Hanging Baskets H anging baskets can provide color and interest to the street. They may be hung from stree t lamps. B e n c h es Seating is especially important for pedestrian relaxation . B enc h es should be provide d at widened walkways and in public spaces . They should be comfortable and durable . Benc h es s h oul d face t h e sidewal k , not the street, unless the street i s part i c u 1 a r 1 y i n te rest i n g . r.--::::::::: ., Contoor Wood Bench I .--------------Con tour Wood P.ench Light ing A ppropriate street lights reinfo rce a pedestrian scale and an overall street unity and add a spec i al night-time ambience and safety. Lighting does not necessarily have to be of the same style and vintage of buildings, but it should complement the busi n ess district. S e t up a rhythm with the light fixtures, spac ing them an equal distance apart. Federal Lantern Wi II iamsburg Lantern Georgian Lantern Single Sphere Multiple Spheres / / Single Cube

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Bollards The u se of boll ards (uprigh t posts) to separate auto and pedestrian traffic is sugg es ted whe re safety is a factor or v 1 here i s confu sion about auto acce ss . 8ollards can be of a very simple design, to complement the paving and buildings. or of a more design in cast iron to emphasize a historic setting . ........__ Kiosks K iosks are bulletin boards used for community anno uncements. Locate kiosks at major traffic points. o 0 1---'-----l \\ -

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00 7 :.70 . . f 1 -:'t '? . r"''. l Y I I f"f Vk-AN/ ?t\-(7t ,/ -5r ):1 -'' \ ....... ,., n \. I BoO f . I G.Of r;p f--' Zoo:::> :r. HAF
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MAINTENANCE PLAN All materials w ear out over time. The rate and degree of deterioration varies, but det erioration > vill occur . Given tha t fact, anothe r c onclu s ion follows : it is l ess expensive to maintain a b uilding and/or public improv e m e nts consistently than allow t h e m to deteriorate to a point w h ere major investment is required. For this reason, maint enance should b e treated as an equal part of the design plan. The se l ection o f d esign elements should consi der m aintenance difficulty and/or whether or not merchants and property owners have the ability and time to undertake its routine maintenance. T h e r e i s not h ing gla m oro u s about maintenance. In most cases, maintenance respon sibilities s hould be divi ded between public and private sectors. R egardless o f who i s responsible, a comprehensive p lan is necessary to cover daily as well as long-term maintenance. If a streetscape plan includes special items outside the city's usual mainte n anc e tasks of tras h removal and street clean-up, cities generally will not tak e on the additional task s or costs. Items in t his category could include trees, planters, sidewalk clean-up, trash removal from containers, e t c. it is sometimes hard to find volunteers for maintenance work. Merchants might consider an "adoption" technique whereby eac h storeowner is assigned, responsible and held accountable for a specific area of the commerci al district, in cl uding that area's trees , trash containers and so forth . Be creative in addressing a commercial district's m a i ntenance problems , but the approach selected should d e p end on the amount merchants can afford to c o ntrac t out t h e distri c t's special c i rcumst a nce, and volunteer commit ment . -66-

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At a minimum, a plan should be develop e d to handle one-time and daily maintenance responsibilities. Daily m aintenance involves the chores of the commerci a l district's upkeep . S easonal planting, s weep ing s idewalks, trash pick up, and watering trees are just a few examples . It is simply good business to m aintain a safe and clean shopping e nvironment. A simple matrix, as shown below, would suffice as a means of establis hing an ongoing maintenance program. Sample Maintenance Plan Maintenance M erch ant S c h edule / Item Location Responsible Upkeep Signature(s) Trees 123 Main XYZ Store Hater 2 times per week, Monday & Friday Sidewalk Sweeping District All Every two days in front of stores. Planters District All m e r c hant s Plant flowers in water ever y two days, Monday and Friday. -67-

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BIBLIOGRAPHY Street. Carol e Rifkind; Harper & Rov1; Ne\
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SECTIO VIII ... z w a.. 0 _J w > w c (f) (f) UJ z (/') ::::> co

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Neighborhood commercial revitalization requires an overall and coordinated planning approach. It is neither a simple nor a short process. Within a framewor k of revitalizatio n, all physical o r other improvement plan s s h ould l ead to th e d evelopmen t of a r ealistic bus iness development strategy. T h e interest in overall revitalization is ver y strong i n most cities. Strategies should capitalize on a combination of forces fueling inner-city revitalization, including energy conservation, "back to the city" movement, and neighborhood business revitalization programs. The purpose of a business devel opment plan is to formulate strategies to m a k e a g iven commerci al area more pro ductive; that is, doing more b usi ness. It may mean the recruiting of needed new businesses to fill vacant sp a ces or encouraging the expansion of existing businesses to tak e advantage of under served markets. Some of the typical business development problems in neighborhood commercial districts concern the lack of uniform leases or purchase agreements f or different properties, nonexistent efforts to recruit new merchants, and to research the market for business expansion or opportunities. Shopping centers have full time professional business development staffs which tackle these problems. They do market research studies to identify the types of businesses that could locate in their shopping centers and call on busineses that might expand into or relocate into the specific center. There is no reason why a neigh b orhood business district could not u ndertake simila r effo r ts. I t is not n ecess a r i l y t h e e x clus iv e responsib i l i t y of buildin g o wners t o fill their available vacancies. The neighbor hood commercial community h as a substantial inte rest i n seeing v acant sto re fro nts o c cupie d a n d tha t th e y are o ccupie d by users whose opera t ions \
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to the commercial district as a whole. A merchants association should have a search committee to assist building owners in th e task of merc hant selection and placeme nt wit hin the framework o f t h e distr ict's busine ss d e v elopment plan . DEVE LOPME: T STRATEGIES Assessing the revitalization potential provides the analytical framework for developing a real istic business d evelopment plan . Informatio n on underserved markets and creative thinking on the part of merchants about the commercial district's potential provides the basis by which to formulate a development scheme. Each existing b usiness s h ould al s o have its own ind iv idual busin e ss deve lop ment plan. Taken together, eac h should be coordin a ted to complement one another and provide a framework to mak e the district more productive. A plan should also be based on t h e goals of existing merchants and the objective e x amination of t h e commercial district's p roblems. It becomes, in effect, a distinct planning pr ocess with an overall revitalization process. Bucin ess develo pment cannot occur wit h out other i m provement activities, either planned or implemente d . Busi n ess d e velopmen t strategies to consider fal l into three broad categories: Business Expansion A business expansion strategy is applicable when the market analysis indicates that existing merchants are underserving the market within the trade area. Expansion plans of individual businesses shoul d be based o n conservative estimates o f market potential. T his will i nsur e t hat a business does not ove rextend itself with expenditures with only a marginal increase i n sales. Strategy dictates t hat m e rchants help one anot her obtain proper f i nancing for e x pansion, m ore and better promotional e fforts or other ways to attract the underserved market to -70-

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to the commercial district. Increased customer traffic will a i d every business. An e x pansion strategy may be designed to attract consumers from al l parts of the city. Business Adaption A business adaption strategy is required when market analysis indicat es c u s tomer dissatisfact ion with th e quali t y and se lecti .on o f goods and services or when merchants fail to m a k e a profit on a good sales volume due to mismanagement. It may be desirable to change a store's product line or product mix, improve management capac i t y of local businesses, or simpl y improve oub l i c relation s of the busi ness dist r ict. Bus i n e s s R ecru i tment Attracting n ew busi nesses m a y b e th e appropri a t e strategy when the market anal ysis indicates a demand for good s and services that are not offered by existing stores. Attraction as a strategy is one by which a commercial district sells itself as a profitable location for a new business. In many ways, neighborhood commercial areas serve an incubator funct ion for m any small businesses. firm s c o ntin u e to star t up i n older urban commer c i al spaces ( c l ose to c u stomers and access to less expensive space ) and t hey graduall y e xpand t o newer and larger quarters as they grow and prosper. Attracting a better anchor store is one of . the most used techniques. Many neighbor hood commercial districts have adapted the concept of the s h opping center " anchor tenant" . I nstead of a full line department store, many s u c c ess ful neighborhood comme rc i al districts a re anch ore d one o r m o re highly visi ble restaurants. N e w anchor businesses pay a critical role in t h e revitalizatio n p roce ss. T h e y g enera t e m o r e shopp ing traffic, have th e pr estige t o make it ea sier to secure f inanc ing f o r other pr ojec ts, and other new businesses are mor e l i kely to o pen in an area once an anchor store i s committed t o t h e project . -71 -

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Business recruitment generally requires a well organized promotion effort. Local realtor, neighborhood and business leaders are probably t h e best promot ors available. T o b e c ompetitive , a neighborhood commerci al d i stric t must hav e a pro per mix of retail and service operations t h a t reflect the needs of its trade area. Diversity will improve the district's overall economic viability. Any business development plan should address the appropriate retail mix which the local market can support. Central to any retail mix is compatibi lity. Each store helps the other in terms of attracting customers. Par t of business develo pment planning is compiling i nformation which will entice potential businesses to seriously cons i der locatin g in the area. Besides the market study, the information packet could include a profile of available buildings, plans for other private and public improvements or other community amenities. The key is persistence. Remember a revitalization process takes time and a long-term commitment. -72-

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BIBLIOGRAPHY The Downtown Improvement . 1anual . Emanuel Berk ; A m e rican Planning Assocatio n, Chicago, IL (1976) . (Comprehensiv e reference manual on various elements of downtown improvement. ) R etail Location A n al s i s Manual and R e t ailing i n L o w -Incom e Are as. Real E s tate R esearc h Cor p.; Chicago, IL 1970 (Useful, one of a kin d book to u n derstand retailing in lowincome a reas.) Local Business and Employment Retention Strategies. Roger Vaugh an; Urban Consortium Information Bulletin; U .S. Dept. of Commerce; Washington, D .C. (1980). (Informative bookle t focusing on urban economic development concerns and approaches.) Coor d i n ated Urba n E c onomic D evelop m e n t : A C ase Study Analysis. Nati onal Council for Urban E conomic D e v elopme n t ; Hashin gton, D . C . ( 1978) (Excel lent bookle t on e conomic d e v elopment plan n ing in u rban are as.) Supporting Local Industry : A Handbook for L oca l D evelopment G rou p s t o Vlork With Existinf Industry. Mississippi R esearch & Development Center; Jackson, MS 1980). (Easy to read handbook on how non-profits can assist exist ing businesses.) Makin Local Economic Develo ment Decisions: A Framework Harold W olman; The U rban Institute; Washington, D . C . (Pr ovi d es "state of t h e art" re view o f policy guid es in formulating e c onoi m c d evelopment s trategies.) N e ighborho o d s i n th e U rban Econom y . Benjami n Golds t e in and Ros s Davis; Lexington Boo ks; Lexington, MA (1977) . (Book describing interrelationship between public, priva t e and community sectors to create a conducive economic environment for investment.) -73-

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SECTIO IX z 0 1-0 0 cr: a.

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Promoting a neighborhood commercial district is every merchant's business . The primary purpose of business district promotion i s to create a n a ura that will e ntice shoppers t o hav e fun, t o see that th e b usi ness district h as t o o ffer. and t o b uild an enthusiasm w i th in the com munity for a vital business community. Establish ing s hoppe r loyalty and i dentification and maintai n ing it is an on-g oing process whic h requires consi derable merchant commitment and planning. HOW TO START A promotional event's suc ce ss depends on tim i ng, planning and effort that a re put into the event. A P r omotion Committee should be a merchants association's s trong es t committee . With a strong chairman and well-organized committee, successful events can be planned and implemented. The committee is responsible for analyzing the needs and determining the promotional goals of the business district which the y a s an ass o ciation want to work toward on an annual A plan of action for a y ear s hould be formulated , so t hat t h e committee can select t h e events t o b e s p onso red . The basic promotional needs of any business district fall into three categories. 1 . Retail Sales Promotions These are events d esigned to s pecifical l y increase retail sales by attracting s h oppers to the business district. A cooperative retail sales promotion is an excellent way to help all merchants, especially small stores that canno t afford a big adver t ising campaign . T his t y p e tends to have a short-lived effec t on attracting shoppers. 2. Festivals Promotions designed to draw people to a busine ss district for fun and e xcitement. Instead of e mphasizing selling, this t ype offers things to see and do whether it be entertainment, food, play, 7 4 -

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etc. Increasing retail sales is a by-product. Festivals create a warm feeling toward a business district-one that can build community loyalty and business district goodwill. 3. General Promotional Programs Even t s designed to the busi ness district on an "institutional " basis, which sells th e business district itself. This type can build a " shop the community" attitude. For neigh borhood busin ess districts, the k ey is to hold events that will give the community a sense of pride and ownership in their business community . They are image builders and can be geared toward celebrating improvements that are being made. COMPONE TS OF S UCCESSFU L PROMOTIONS 1. Appeal of the promotion-Event should appeal to not only the potential shopper, but especially to merchants who are putting it on. Merchant enthusiasm is critical to insure commitment to the event. 2. Timing of event Promotions are most effective on a one or two day basis. One day events are ideal for neighborhood business di s tricts because they do not take t h e merchants away from his/her business too long. 3. Good facilities -select a proper setting for t h e event. Temporary street closure is a must for many events. 4. Planning Events should be planned and organized according to their purpose. In most cases, a promotion takes a busy six to e igh t weeks to plan . 5. Advertising the event -Word must get out to the community that somet hing is happening. Festivals need lots of p r omoting to be wort hwhile. D o not hesitate to take advantage of freebies, such as public serv i ce announce ments (PSAs) by local electronic m edia. -75-

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6. Purpose of the event -Do not forget that the purpose of any promotional event is to advance the business district's image and make it an exciting place to shop and t o be. 7. Organization-The key is to get as many merchants/people involved as possible. D o not be afraid to see k volunteer assistance. A well-organized committee assigning specific tasks to each member equitably wi 11 not only get the job done, but will build goodwill to tackle the next event. 8. Start small -The key is to determine the energy level of the assoc iation. Two events per year for neighborhood business districts is plenty. Demonstrate success and then watch the enthusiasm grow. SOME STEPS IN DEVELOPING A PROMOTIONAL PLAN Once a business district's needs and goals for promotion are understood and set, the Promotion Committee is ready to develop a plan of action. Some steps to consider are: l. Review other business districts' promotional activities. D evelop a list of what events have worked on similar business districts. 2. Develop a schedule of promotions that fit your goals. Be liberal to insure choices. 3. Lay out a planned year-long program, including suggested list of both promotional and advertising (retail sales promotions) events. This plan is intended to provide the Committee with basic information for decision making . 4 . Determine the appropriate time of year to hold specific promotions. The key is to use promotion wisely given t h e volunteer nature o f volunteer business associations. It is now time for preliminary selection and approval by the Committee. -76-

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5. Set tentative dates for each event. In d etermining the best month or day to hold an e vent, keep in mind • when is payday? • w hat are th e spending patterns, w h ich days o r holida y s are big in the community • can you plug into other events? 1 conside r the weather 6. Schedule exact date(s) for all promotions for t h e coming year. 7. Establish a budget based on projected size of the event. D etermine whether or not promotions can be self-sustai ning or will need to be subsidized. 8 . Determine manpowe r requirements . Remember to plan only as many events as you have m anpower and funds to handle in a first-class manner. 9. At this point, the Committee should be ready to write a plan of action for presentation to t h e merchants association for modification and final approval. A sampl e Plan of Action for an event should in clude information on: a. Name of event b. Purpose/goal of event c. Date/place of event d. Pre-event activities list (assigned task s) e. Event activities (who is responsible for what ) f . Publicity requirements g. Bud get 10. After association approval, print a calendar of events for immediate distri bution . -77-

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11. Association should appoint or obtain a volunteer to act as each event's chairperson. Spell out to these chairpersons that this is their prime responsibility for t h e com ing year. Chairperson can then line up as many volunteers as needed to organize and run the event. SOME IDEAS T O CONSIDER 1. Sale Promotions • Midnight Madness Sale Merchants stay open until midnight on a specific day/month. • Holiday Specials Retail sales on days p receding national/local holidays. • Old Fashioned PricesRoll-back prices on certain i tems. • Sidewalk Bazaar-Summer day event for merchants to clear their shelves of unwanted and old merchandise which they display on the street and sell at very low prices. 2. Festivals • Ethnic Celebration -street fair based on the community's ethnic character, emphasizing foods , dance and entertainment. • N eighborhood Block Party -similar to a street fair, but with display booths of all descriptions. Excellent for involvin g non-profit organizations to promote their as well . • Arts and Crafts Fair-Event for community artists to display and sell their creations. • Neighborhood Garage Sale -Street closure and space rental for residents to sell their unwanted household items. 3. General Promotion Programs • Merchants Ass o ciation Logo Contest Involve local artists to design logo or name for neighborhood busi ness district. • Awards for Excellence -Awards program to recognize community students or volunteers. • Pumpkin Carving Contest Halloween event to show business community's commitment to a safe and fun Halloween. • My Dad or Mom is the Best Contest E ssa y contest for children with winners displayed in storefronts for public to read. 7 8 -

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BIBLIOGRAPHY I . D . E . A., Downtown Promotion Handbook. T h e International Downtown Executives Association; Washington, D.C. (1980) ( uch of this section was adapted from this h e l oful booklet . Geared to downtown promotion a n d associations with paid staff, i t nonetheless provides the basics of promotion . ) How the U se th e Media. Patricia Warden, National Recreation and Park Association; 1601 N . Kent Street, Arlington, VA 22209 ( 1977) (Useful guid e to answer the who, what, where and h o w regarding media use. ) Arts Festivals: A Work Kit. Nan Levinson, Arts Ext ension Service; University of Massachusetts, Amherst, MA 01003 (1978 ) . (Hel pful how-to booklet for organizing and promoting arts and crafts events.) Guide to Publi c R elations for Non-Profit Organizations . G rantsmans hip Center N ews, 1031 South Grand A venue, Los A n geles, CA 90015. (Handy t ip s on press releases, PRevents and media relations.) How to Promote Your Shotping Center . New York, N Y 1973) John Fulweiler, Chain Store Age Books; (Good source for information on promotion and advertising.) ,. 0 GARAGE SALE -79 -' ' 0

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The difficult part of any neighborhood commercial revitalization effort is figuring out who pays for it. In most inner-city neighborhood situations, merchants have little investm e nt capital and little incentive to mak e improvements to buildings they do not own. Private financial institutions have also been reluctant to invest in many older urban areas due to pas t experience and due to real or perceived greater risks in comparison with suburban or other locations. For our purpose, financing is divided into two busi ness financing for improvement and/or expansion; and financing for public improvements. B oth are diffic ult and complex issues. The purpo se of this section is, rather, to familiarize the reader with some of t h ose programs most widely applicable to neighborhood revitalization situations. The problem of obtaining business financing in older urban areas is threefold: l) the merchant and/or property owner must be convinced that a revitalization effort will result in increased sales and profit; 2) the financ ing for building improvements must b e inexpensive enough to mak e u p for the lack of capital among inner-city m erchan ts; and 3) lending institutions must be convinced that the risk of lending to businesses in t h e area is not too high. The key to overcome the bank's reluctance is to reduce the bank's risks through the coordinated nature of merchants and property owner s participating together to implement an overall revitalization plan. Few lending institutions will mak e a loan to a single entrepreneur on a deteriorated commercial strip, were the rest of the m erchants are apatheti c to t h e idea of revitalization. Based on successful efforts around t h e country, the availability of long-term financing is the critical e lement. Longterm financing m a k es many 80 -

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business improvement pro jects feasible with 20 year loans because the monthly payments become more reas onable. lenders (up to 5 to 10 y ears). H owever, banks are mainly short-term What is the answer? any cities have developed their own finan c ing programs for older business districts. Thes e programs are based on the leveraging of a variety of funding sources. The concept of crea t ive leverag ing is one of piggybacking one f e deral program with another, federal monies wit h local fund s , or f e deral and/or lo cal fund s with private capital . What has b een learned thus far i s that no one f unding source can solve the long-term loan gap for s maller busine s ses. The special government and local private financing programs to overcome "longterm loan gap" s hould be explored first as a m eans of obtaining busi ness financing. FINANCING SOURCES FOR BUSINESS IMPROVEMENT Commercial Banks Commercial bank s have long been the cornerstone of lending for small and growing businesses. They are "full-service" institutions which offer a variety of loans on either an unse c ured or secured basis. Some typ e s of loans available include: • Personal sec ured/un sec ur e d l oans • Straight commercial loans • Government-guaranteed loans • Receivables/inventory financing • Real estate/ equipment term loans • Uns ecur e d line of credit/term loans • L etters of credit In most cases, lending by a bank is done on a sec ured basis. A secured loan requires a pledge of some or all the assets of the business and in most instances the personal guarant ees of the owner. A n unse c ured loan i s granted 8 1 -

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solely on the basis of an applicant's credit and thus harder to obtain by a small firm without an impressive financial track record. To assess a busin ess application, all commercial bansk have a set of lending poli cies whic h g e nerally are guided b y t h e four "Cs": t Character-the borrowe r appear s to have the credit re putation to insur e repa yment o f t h e loan. 1 Capital the borrower has a sufficient amount of his o r her own funds invested in the business. t Capacity the borrower has the demonstrated skill to m anage th e busine ss profitably. 1 Collateral t h e borrower h as a very good credit rating or tangible assets to pledge. Savings and Loan Companies Savings and lban institutions offer a limited of business financing. They are chartered to make real estate loans on industrial and commercial property a s well as housing . As a source for real estate loans , sav ings and loa n companies g e n erally will write a mortgage for up to 75 to 8 0 percent of th e appr a i se d value of th e property with a repayment schedule of up to twenty-five years. In most cases, real estate financing must be secured by a first mortgage. Small Business Administration (SBA) -The SBA is the major source of government financing available to the small businessperson. The SBA's goal is to stimulate and promote the small business sec to r of th e national economy. It helps small firms obtain capital by guaranteeing intermediate and long-term bank loans and making a limited number of direct l o ans. Some of th e applicable SBA lending programs are: 32-

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• 7(a) Regular Business Loan Program Guaranteed/ins u red loans with repayment schedule to 20 years are provided to construct, expand or convert facilities, to purchas e bui l ding, e q uipment or materials, and for working capital. Maximum exposure to the SBA is $500,000 . • Contractor's ProgramGuaranteed business loans t o small general contractors t o construct or rehabilitate struc tu res for immediate resale on their own account. • E conomic Opportunity Loans M anagement assistance and guaran t eed or direct loans up to $ 100,000 t o low-income, social l y or economically disadvantage d persons to establish, pres erve and strengthen their small bus ine ss . • Small Business Investment Companies -Management advisory services and counseling and direct and/or guaranteed loans to small businesses whic h have innovative ideas and develop new products, processes and markets. • 503 Prog ra m Certified Development Company Program is designed to bridge the l ong-term credit gap of s mall firms . The 503 Program provides financ ing a ss i stance to small businesses through th e sale of debentures . The SBA guarantees t h e full amount of the debentures sold b y a certified development company. Once sold, the Cert ified Development Company lends to small businesses with criteria similar to the SBA's 7(a) Program. Other Government Programs t Economic Development Administration (EDA) -The EDA provid es fundi n g to both busin ess and state/local government wit h no upward limit. Business loan and/or guarant ee can be utilized to fi nance businesses whic h QO beyond th e SBA size standard. EDA also has grants and loans for public works and for the development of facilities, such as 83-

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industrial par ks, to stimulate job creation i n high unemployment and disadvantaged areas. • Farmers Home . 1\dministration (rHA) This rur al development agency has a Business and Industrial Loan Program which i s very similar to t h e SBA;s p rogram. The program is designed to develop business, increase employment and 1mprove the economy of the rural areas . • Department of H ousing and Urban D evelopment (HUD) -HUD's Community Development Block Grant funds are utilized by many cities in developing and funding N eighborhood B usiness Revitalization Program. In most cases, cities use CDBG funds to cover admini strative costs, hire local staff for economic development, for public improvements, for incentive programs to induce private improvements via architectural/loan packaging assistance and interest/loan subsidies and other innovative investment stimulating techniques. Economic Development Authorities -In many areas, chartered state o r loc al economic d eve lopment authorities are a flexible source of business financing . Authorities either use their own funds or provid e access t o federal financing programs. They generally make both equity investments and long-term loans for expansion or modernization of facilities. Other Private Sources t Life Insurance Companies Insurance companies generally write two type s of loans , commercial mortgage s and unse c ured term loans . Lending policies are geare d around moderate risks, i.e. well established firms . • Commercial Finance Companies -similar to a commercial bank, commercial finance companies provide secured loans whic h are generally collateralized by requiring a lien on a firm's assets, suc h as invent o ry equipment or 84 -

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real estate. The biggest disadvantage is the high interest rate associated with the loans. A s can b e seen, t h e r e are a myriad of f inanc ing a lternative s t hat may b e appropriate t o a firm' s situation. T h e a bove r e p r esen t s a sampl e of where t o turn. Ther e is con siderable overlap o f servi ces among insti tu t ions whic h c omplicates th e selection process. T h e k ey i s to s hop around and t al k with fellow business people t o determine which is the most appropriate source given a f i rm's financing needs. FIN SOURC E S FOR PUBLI C IMP ROVEMENTS C i t y government can b e t h e most i mporta n t s o u r c e o f financing for public improvements , since it possesses the unique abi lity to crea t e special assessme n t districts; sell bonds; borrow tax exempt money; and receive direct federal monies such as the community block grants made by U.S. Dept. of Housing a n d U rban D evelopment. Leade r s h ip f rom t h e nei g h bor hood commercial district a n d local government o f ficial s shoul d c ollaborate o n determing t h e appropriate fi nancing m ech anism to implement proposed public improvements. The importance of city government as a partner in financing neighborhood commercial revitalization has already been demonstrated throughout the country. If cities are unwilling to help, the further decline of neighborhood commercial areas spells additional unemployment and reduced business, sales tax and property tax revenues. This reduction i n city revenues is compound e d when cities spen d additional funds f o r social programs as a result of the social and economic conse q uences of deterioration . Cities, t h e r e f ore h a v e an in centive to a ss i s t neighborh o o d commerci al a reas a s th e burde n o f inaction wil l u l t i mately cost cities and taxp a yers m ore as deterioration spreads to the residential part of t h e neig h borhood -resulting in loss of real estate taxes and overall erosion of a city's tax base.

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There is a range of local financing mechanisms for public improvements. Some of the more widely use d sources will be discussed here. \ Jhat is important to c onsider is t hat no one fundin g source should b e t arg e t e d alone. Commercial dist r i c t leaders a n d local g o vern ment must e xplore ways to l everage private sector commitments, and combine a variety of sources to reduce th e burden on the small business person. The rea der s h ould also be aware that federal and state financing program change rapidly, so t h e range of funding possibilities should be chec ked periodically. The following outlines current funding possibilities for publi c works. Special A ssessment DistrictA special assessment district i s es t ablished by local government with the consent of th e property owners of t h e pro j ec t area. State legislation, c ity cooperation, bonding capacity and a good rating are required. The city issues a revenue bond by which to finance public improvements in the assessment district. The municipal bond serves as the public veh icle for issuing what could be c onsidered a long -term loan taken out and repaid by the property owners of t h e district. I n short, a special assessment is a one-time levy on all real property benefiting from a specific project. Levy proceeds over a specified period are used to retire the bond issue. Community Development Block Grants (CDBG) CDBG's can be used by cities to subsidize interest rates on re habilitation loan guarantee programs for merchants, to provide modes t grants in combination with local loan program to subsidize physical store improvements, to p rov ide funds for lan d write-downs of cleared parcels, acquisition of blighted structures, relocation payments to displaced busin esses , and more importantly funds for infrastructure and public work s construction. Many cities have " N eighborhood B u siness R evitalization Programs" 8 6 -

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which provide technical assistance and funds to targeted neighborhood commercial areas. In many cases, cities f inance pub lic improvement by mixing a variety of sources to leverage private sector dollars. The CDBG program has been the k ey s ource in th e financing combination. Urban D evelopment Action Grants (UDAGs) -UDAGs are awarded competitively to "distressed" citi es for industrial, commercial or n ei ghborhood projects by the U.S. D epartment of H ous ing and Urban Leveraging funds through "up fro nt" private commitment is a uniqu e requirement of th e program. For larger neighborhood commercial strips, this can be an excel lent source if private commitme nts are readily available. Private funds must leverage federal funds at a 6 to ratio to be competitive . Tax Abatement s T otal or partial tax abatements on improvement commercial properties can be made for a deferred time period or permanently, where state and/or local enabling legislation p e rmits . This source is for privat e improvement, but as part of a financing mixture can be used to demonstrate pri vate commitments to the overall revitalization effort. Tax Increment Financing -Tax increment financing is a relatively new mechanism for providing fund s for revitalization projects by capturing the incr e mental increase in tax revenues from a development project to pay for public in vestment to assist that development. Simply, tax increment financ ing uses the projected ---increased property tax revenues generated in a development project area to retire a municipal bond issued for public improvements . In most cases, this finan c ing technique has been u sed for larger development projects. TAX INCENTIVES Important tax incentives for small businesses have been enacted by state and federal legislation over the last few years. A merchants' a ssociation / 87 -

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or leadership should consult with a tax expert to d e termine what laws are applicable. Tax incentives can provide an additional tool to encourage private investments in improving the physical and business image of a neighborhood commercial district. In general, recent federal tax acts have provided accelerated depreciation for property rehabilitation and other advantage to encourage investment in plant and equipment. In areas of historical importance, the Tax Reform Act of 1976 provides important tax incentives for the preservation and rehabilitation of historic structures. A building must be located in a registered historic district or listed individually in the National Register of Historic Places to qualify. Preservation provisions permit owners to amortize the costs of rehabilitation over a five-year period or to depreciate the costs of substantially rehabili-tated structures at an accelerated rate. -:--' 88 -

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BIBLIO GRAPHY Small Bus in ess Fundamental s . Dan Steinhoff; McGraw-Hill; New Yor k , Y (1978) . (Complete book on business management princi ples.) Tax Incentives for Historic Preservation. Gregory E . Andrews; National Trust for Historic Preservation; Washington, D.C. ( 1 980) . ( Useful guide to determine tax advantages of historic preservation.) A of Small Business Finance. Jack Zwi c k ; Small Business Administration; Washington, D.C. (1975). (Excellent source to understand how small business f i nance works.) -89-

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Neighborhood commercial revitalization is not an end in itself. It is an on-g oing process b y w hich merchants must stay a h ead of competit ion t o rema in viable. R e versing th e c ycle of n eighb o rhood decline a lso genera l l y requires other ave nues of attack s u c h as crime prevention and improvement of h ousing and employment oppor tun i ties. I n most instances, commerci al revitalization must go hand -in-hand wit h general neighborhood impr ovement i f i t is to succeed. A commercial revitalization effort can function as a pivotal project the one which visi bly defines and alters the flavor of the neighbor h ood. I n some cases aroun d t h e country, the commercial revitalization process w as t h e torchbearer that f osters over al l revi t al ization of a community, whi l e in most insta nces commercial revitalization foll o w e d and r e flected th e changing character of the surrounding residential area. I n either case, com mercial revitalization must occur if our neighborhoods are to remain healthy and viable places to live. The i m portance of small business in our national economy is increasingly realize d , yet efforts to effectivel y stimulate small busi n e ss growt h have been frustrating a n d fragmen t e d . T h e neighborhoo d comm e r c i a l revitalizatio n process is just one approach , though in many citi es it is a proven system for redeveloping the neighborhood business sector. N eighborhood commercial revitalization is also an economic process. It must make economic sense to investors or they will stay away. Everyone's participation is required to turn around a negat ive d isinvestment c ycle. Even a few " eyesores " scare c u s tomers a n d potential investors away . Most merchants know if a n area i s d ecl ining:th ey can count vacant s t ores and dec re asing s ales. Merch ants are also willi n g to help t h emselves , but th e y gener al l y d o n o t have t h e t i me, energy o r skil l s to go about d eter mining -90-

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what to do or how tod o it. In most cases, they have never organized to learn how to handle their collective p roblems. Organization and education i s needed to a ctively invol v e merc hants in decisions and controlling their neighborhood commercial district. Two e l ements stand out in a neighborhood com mercial revitalization success sto r ies: t h e k ey to rev italization was t h e preparation of an overall redevelopment plan ; and th e development of legally enforcea ble design, participation and management s tandards . This replication o f the "shop ping center model" is a challenge for both private and public sectors. If small business is to remain the cornerstone of o u r loca l and nat ional economies, small b usiness mus t practice and c ollectiv el y l earn from its competition and othe r large scale devel opments to re m ain v i able . Obviously, there is no one pattern for commercial revitalization -no strategy that can be exactly replicated throughout th e country. No two neighborhood commercial districts have exactly the same problems, the same interests, or the same capacities. Experienc e , good l ea dersh i p and trial and error are essential. is more common is that commercial revitalization i s accomplished within a framework of neig h bor h o o d revitalizat i o n. In som e ways, neighborhood revitalization is hard to define. Generally, it encompasses a strategy for jobs, credit, citizen participatio n, business revitalization, and housing development, etc. It is a comprehensive approach to solve a variety of complex problems. And solutions to community problems are complex because the p roblems usually are. The k e y to solving some of the problems is to have the neighborhoo d loo k at th e whole problem a compreh ensive approach. Thi s fram e work of re vitalizatio n might include t h e followi n g strategy: t Hous in g pr o cess -improve t h e s to c k and tak e c a re of th ose u ndesirable bui ldings, t hen focus on ownership that develops pr ide in self and i n th e com munit y . -91-

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• Job development -set up process for finding jobs for the unemployed. 1 Human/municipal service-work with local government to improve day care, trash collection, crime prevention, etc. • Citizen participation develop a solid m e chanism for citizen involve ment based on t h e needs and problem s of th e community . N e ighborhood commercial revitalization should be undertaken with in the context of one or all of the above or more. All too often, the revitalization process only focuses on physical renewal. It should focus on people as well as buildings. People s h op. Buildings do not. The human element of revitalization must coi n cide with physi c al redevelop ment if eac h i s to succeed. What follows is intended to provide some underst anding of the basic ingredients thought to be necessary for neighborhood commercial revitalization. Commercial districts may want to use them to initially assess whether or not their area has the potential and/or willingness to consider such an endeavor. Most are based on successful case studies from around the country; some from t h e author's own experience . They are not in any order, but taken in total s hould provide t h e rea der with a sense of elements for success. 1 Stable, healthy neighborhood(s) -Revitalization is more likely to succeed in neighborhoods with considerable market potential, have active organizations and are willing to participate in the revitalization effort. Success is dependent upon stability and purchasing power. In transition neighbor h oods, other revitalization efforts must be occurring to bring the neighborhood toward stability and health. It be recognized early that commercial areas depend on coexistence wit h a par ticular community. -9 2 -

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t Potential for merchant/property owner involvement -The single most essential criteria for success. A majority must participate. If not, it is a wast e of time. The general cohesiveness o r sense of community felt by merchants and/or property owners in a retail area are pivotal factors in moving revitalization from thought to action. t Leadership potential with merchant community-As with general cohesiveness, someone must take the initiative to provide the creativity and energy needed to carry out revitalization. Active local leadership is a must. t Positive attitude of city government toward business revitalization Local government leadership, including elected officials and appropriate agency heads, must place a high priority on economic development within the city. Without support, commercial revitalization cannot succeed. Government leaders must be able t o realize the potential of commercial revitalization for increasing city revenues. t Healthy or up-grading trade area -Many argue that a healthy trade area is a prerequisite. What is important is that an analysis be undertaken to determine the size and quality of a commercial district's trade area. The importance is obvious: no business can succeed if it is marketing either a service or product for which there is little or no demand or for which there are already adequate suppliers. t Customer-oriented approach or attitude -Too many merchants merely give lip service to the concept of customer satisfaction. In neighborhood commercial revitalization, a certain amount of customer goodwill must already be present to generate additional commercial growth. t Volunta r y participation is difficult-In cities .,.,here voluntary participation mechanisms are used the result is t hat only about one-third of projects are successful. A bsentee landlords who have neglected their -93-

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buildings are unlikely to respond to voluntary participation. For this reason, many cities have d eveloped l egal sanctions (urban renewal o r dinan ces etc. ) to in s u re 1 00 p e rcent p articipatio n . t Public improv e ments a r e a mus t p e opl e a re attrac t e d to nice pl aces. Creating a safe, clean, and fun s h o pping environmen t shoul d b e t h e goal of public improvements. t Emphasizing convenience shopping and services N e i ghborhood shop s cannot compete in price or variety of merchandise with downtown or shopping malls. Instead , neighborhood stores need to emphasize personalized service and neig h bor hood accessibility to the l o cal stores. Knowing your customers and b eing open when t h e y need to shop will build customer loyalty. t Concentrateon successful businesses All too often, time and energy is wasted in well-meaning attempts to d o t h e impossible, such as t rying to save failing businesses during their last gasps. Learning which projects to screen out is very important. A realistic business d eve lopment plan s h o u ld be helpful. It i s usually preferable to promote the e x pansion of existing busin es ses or re crui t new o nes from nearby areas. t Integrate with other revitalizatio n efforts -Ideally, commercial revitalization should be part of and coordinated with a comprehensive program for overall neighborhood revitalization. In some cases, housing and commercia l redevelopment compete for scarce public resources. Working together is a must to attr act private investment and mount political support for revitalization in any n ei ghbor hood setting. t Specia l ized s h oppin g c a n work som etimes any commercial a r e a s have undergone rev italization aroun d c oncentrating on c ertain the m es o r specialty g oods and services. Several t h ings result from spec 1alization . T h e s h opping area if forced to market towar d a par ticular need t hereby

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building in an interdependence among the s hops and stores. This force d cooperatio n can eliminate some of a district's voluntary par ticipation probl e m s . Combined with con venience stores, t his approach has man y b e efits. • R e alistic time frames Commercial r evitaliz ation is a long t erm p roces s whic h alternates between reward a n d fru stra tion. It requires e xtensive commitment of time, resources and faith d uring all phases. It may take several years to realize and complete any or al l improvements. • "Image" problem must be overcome -To successfully attract new businesses and c ustomers, the p r obl e m s of crime , in s u rance c osts a n d o ther causes o f dis i n vestm e n t must b e attack e d a gressi vely. An i mage of h e a t h and vitality must be conveyed at all times. Merchants must demonstrate that they care about their commercial. area. Sweeping sidewal k s and litter pic k -up regularly etc. conveys care. No vacant windows should exist. Displays or advertising s hould be placed in any vacant windows until an occupant is f o und. 1 Public/privat e collaborationColl a boration between p r ivate lend e rs, city officials, neighborhoods and commercial districts is essential. Neither group has the resources to reverse negative trends in neighborhood commercial areas alone. 1 Availability of long-term financing-Long-term financing is critical if commercial revitalization is to be successful. Most merchants simply cannot afford t h e cost of short-term money. Many citi es hav e devel oped finance programs which combine public and private funds to make long term loan s availd ble for smal l bus iness. • Qngo i n g merchants a s s o c i a t ion L o c al m e r c hants a n d b usiness m e n have to activel y p ro m o t e and protect t h e c o mmercial distri c t if t h e y h o p e t o see -9 5 -

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positive " bottom line" results. The vitality of a m erchants organization insures success. • Effec ive outside organizer and technical assistance -In many cases, city government has been the driving force of organzing m e rchant s to unde rtake commercial revitalization. In order to be an effective organizer, one must unders tan d the people h e or s h e i s working with. With merchants, it is important to know as much as possible about the workings of a small business and t h e goals and motivation of a small business person . Cities also pro vide direct technical assistance, especially in loan packagi n g . In most instances, technical assistanc e i s as important as financial assistance. Most merchants are usua lly too busy k eeping their businesses afloat that they have little time to t h ink about facade designs, financial statements, etc. • Mandatory design/build standards -In most cases where city government plays a substantial role in the commercial revitalization process, mandatory standards are re quired to in s ure uniformity of appearance and to attract a majority of merc hants in an area to participate. Cities have often used financial incentives and legal sanctions to implement design plans. • Relocate ground floor office space users to upper stories office uses on ground level, storefronts or personal se .rvice, require a certain degree of exposure, but do not rely upon walk-in traffic to the same extent as retail merchants. More retail on ground level would better serve the commercial district becau se they draw c ustomers. • Adaptive reuse of uppe r story space f o r apartm ents Private and public improveme nts could contribut e to mak ing a commercial district a desirable place for residential use. A r esidential atmosphere will have the added 96 -

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benefit of reducing t h e perception of crime, etc. through more use of public spaces . The re-establishment of t h e traditional trait o f a p ropr ietor l iv ing above his o r her store should be e n cour a g e d whereve r possible. • U s e e xample s of demonstra ble succ ess M e r c h a n t s m ust be pr e pare d to sell the revitalization idea to local g o v ernment , t h e neighb o rhood, fellow merchants and property o wners. S u ccess stories of other cities should be researched and cited when a city lacks a success story. Use the dollar and cents approach to demonstrate economic feas i bility . B e cautious. W hat work s in one area might not necessarily work i n another.

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INFORMATION SHEET GLOSSARY OF TERMS Anc h or store : A major store , ty p ically a departm ent store i n t h e c a se o f reg ion al s hoppin g centers, t hat i s able to draw customers to a shop ping area. G r oss leasable area (GLA): T h e standard measure ment of retail floor area. Gross leasable area is the entire area for which tenants pay rent, measured in square feet. H ousehold: All persons occupying a single housing unit, w hether or not the y are related. Pr imar y t ra d e area: T h e area in which a shopping area or establishme n t will have t h e hig hest capture rate of customers. Secondary trade area: The area which a shopping area or es t ablishment will have some influence, but not as much as in the primary trade area. Trade area: The geographic area from which most of the continuing patronage of a s h opping area or store is obtained . Cornic e : T h e projecting m e m ber at t h e t o p of a w al l . A decorative d e v elop m ent o f utilitarian coping. T h e cornice was a principal d es ign e l e ment in Victorian commercial buildings. Coping: The capping or top course of a wall, sometimes protecting the wall from weather . Eave: The edge of a roof that projects over an outside wall. Facade: The face or front of a building. Lintel: A horizontal member spanning an opening. A decorative lintel is t hat design element (of stone, metal, brick, etc.) w hich is directly o ver a w indow. Pilaster: A n upr i ght, flat, rectangular pillar p rojectin g onl y slightl y fro m a w a l l and designed to simulate a c olumn.

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Transom: An opening over a door or window, often for ventilation and containing a glazed or solid sash, sometimes hinged or pivoted. Sash: A frame for glass to close a window opening. Column: A supporting pillar consisting of base, shaft, and capital. Assets: he valuable resources, or properties and property r ights owned by an individual or business enterprise. Capital Equipment: Equipment which businesses u se to manufacture a product, provide a service, or use to sell, store and deliver merchandise. Collateral: Something of value given or held as a pledge that a debt or obligation will be fulfilled. Deal: A proposal for financing business creation or expansion ; a series of transactions and preparation of documents in o rder to obtain funds for business e xpansion or creation. Depreciation: A reduction in the value of fixed assets. Entrepreneur: An innovator of a business enterprise who recognizes opportunities to introduce a new product, a new productive process, or an improved organization, and who raises the necessary money, assembles the factor of production, and organizes an operation to exploit the opportunity. Equity: The monetary value of a property or business which exceeds the claims and/or liens against it by others. Mortgage Loan: A loan that is obtained to pay all or part of the costs required to buy or lease a building. Pro forma: A projection or estimate of what may result in the future from actions in the present. A forma financial statement is one that shows how the actual operations of the business will turn out if certain assumptions are achieved. Target Market: T h e specific individuals, distinguished by socio-economic, demographic and/or interest characteristics who are the most likely potential customers for the goods and/or services of a business.

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I I I I I I Building codes: A set o f regulations which establishes the type of materials, wiring, plumbing, and p erformance standards to be used when constructing or altering buildings. A municipality adopts its own building code which must b e complied with before a building permit is issued . Census tract: T h e small area for which censu s data is collected. It can v ary in size and h as definable boundaries. Demographic data : Information about populations in a specific area, usually in the form of statistics, e.g. information about age, sex, income, education, the number of births and deaths, etc. Ordinance: A regulation adopted by the governing body at a jurisdiction that essentially becomes law and regula t es activity within the boundaries of that jurisdiction only. An ordinance is enforcea ble as law . Zoning : An application of police power to regulate the use of land, types of buildings and development allow e d in an area, for the protection of the public health, welfare and safety. These regulations are contained in the zoning ordinance, which describes different zone districts, with the uses allow e d varying among districts. Development and construction must meet these criteria before being approved by the governing body.

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INFORMATION SHEET SURVEY DEVELOPMENT AND METHODOLOGY In n e ighborhood commercial revitalization, the purpose of surveys is to give the commercial district a n image of itself as reflected by the concerns of a representative sample of neighborhood res ident s and/or customer s . Generally, two methods have b een utilized: an in-store survey by perso n al interview or neighborhood survey on a sample basis. Each is intended to provide useful information which a m erchants organization can use to deve lop a commercial district revitalization strategy. Planning a Surv e y The first step in developing a surve y is to choose a specifi c problem and list its possible causes. These causes provide the planning stage with a hypothesis or theory that the survey is designed to test. If a commercial district wishes to find out why neighborhood consumers are not shopping at their stores, t h e i r hypoth eses may includ e " costly goods and service", "lack of variety" , or "unsafe at night." The survey should b e structu red to obtain data and/or opinions to find out if these particular problems are indeed causing consumers to shop elsew here. The key to planning a survey is . to make sure that the survey will obtain enough information to allow detailed analysis of problems and opportunities when the data is collected. The data needs of a commercial revitalization effort will indicate who or what constitutes the group (uni verse or population) to be surve y ed. Survey Desig n How b road a study is undertak e n will d epen d on th e time and money available for the survey and the size of the u n iverse. Universe is define d

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as the population or group t o be surveyed. For commerci al revitalization s tudies, samplin g techniques could be utililized. Sampling m ethods collect data from p art of a population t o be s urv eyed and allows for assuming the sampl e's data and concl u s ion r e pre sents th e whole . The re source available d e t e r m ines only t h e size o f the s ampl e to be surve y e d , not th e pop u l ation. Surv ey d es ign also entails d e t e rmining t h e a pprop riate surve y m e thod . An in-sto re s u rve y whe r e customers a re interview e d i n p e r s o n i s th e most difficult because th e target popula t ion is so h ard to identify and i n m any cases are h ighl y b i ased in f avor of t h e c ommercia l dist r ict. In a nei g hborhood commerc i al situat io n , a sample hous ehold surve y whereby a questionnaire is hand delive r e d to a ra ndomly selected house, fille d out by h ead o f hou s e hold and returne d t hrough a p i c k up m e thod is more use ful a n d accura t e r epresentati on. This type o f survey in g techn iqu e eliminates some o f the problems of choosing the sample. Designers simply determine the geograp hic boundaries of t h e potential trade area and determine the number of households t o b e s u r v e yed given th e tota l number . Utilizing a map, e very fifth or tenth house c ould b e selec t e d and plo t t e d as a m e thod of selecting t h e random sample. T h e siz e of the s ample s h o uld be larg e e nough to allow for reduce d surve y returns. Development of Survey Questionnaire Every survey requires a questionnaire, whic h is q list of all survey questions in final form. I n general, questionnaires s h ould begin with those questions answere d easily and which p rov oke t h e responden t's interest i n the surve y topic. Difficult or embarrassing questions shoul d come at t h e end. Question s s h oul d b e g r o u p e d by t opi c. A g ene ra l question m a y introduce t h e topic and b e follow e d by more s p ecific inq u i r i es . S ur v e y s usually employ f o ur different kinds of questions.

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1 Multiple c hoice questions questions designed to ask the r espondent to c h oose from a list of ans wers or to answer "yes o r no". • Fillin questions -questions worde d to allow the re s pondent the opportunity to provide his/h e r own short answer or best estimate. t Scale questions respondent is asked to rate various issues on a scale. Commonly, these questions ask about th e intensity of a re spondent's opinion by requiring a determination of whe th e r or not he/she "agrees strongly", "agrees somewhat" , has "no opinion", "disagrees somewhat" , or "disagrees strongly" with a statement. 1 Open-ende d question s "What is the main reason you shop a t XYZ commercial district?" can provide revealing information . Respondent is given the opportunity to provide a full-range of answers. Whi l e useful, open-ended questions are somet imes hard to analyze when answers are vague. The length of a questionnaire must be adjusted to a particular population to b e surveyed, the survey method, time and available manpower for administration and data proce ss ing . Wor ding of questions should take into consideration t h e population's education level. They should be worded as carefully and e xplicitly as possible to reduce various interpretations of the question. Pre-test and Personnel A good evaluation requires a modest pre-test of the questionnaire and other . materials under approximate field conditions and using subjects similar to those who will be r espondents for the full s u rve y . Fifteen to t wenty participants are enough for a practical test. The purpose of pre-t esting is to dete c t vague, conf using , a mbiguous or offensive questions. Pre-test respondents should b e interviewed about problems of the questionnaire after they have completed it.

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All professionals or volunteers involved in surveying should receive training. Training can begin with a briefing on the purpose of the survey and the population being surv eyed. W here sampling is used, training should stre ss fiel d procedures that out l in e alternatives to solve problems in the field. Once trained, surveyors can then be assigned t h e i r sp e ci fic areas and briefin g on collection and return procedures. S urveyors should complete their field work as quick l y as possible, since events may change the responses between the first and last survey. Coding and Tabulating Data Once surveys h ave been collected, the coding and tabulation p h ase begi n . I n most cases, surve y s are using a c oding form a t t hat computers ca n process. Computer tabulation is faster, cheaper and more reliable than hand methods. This step along with analysis should be done with the aid of a person knowledgeable in statistical analysis methods and computer programming. Both are complicated subjects requiring experience and insights.

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MERCHANTS SURVEY 1. Name of Business 2. Address of 3 . Names o f Ovmer ( s) / H a nagers 4. Type of product/service provided __ A. (DESCRIPTION OF BUSINESS) 1. Are you doing business as: (a) Sole Proprietor (b) Partnership (c) Corporation 2. Is this business part of a franchise operation: (a) Yes ( tJ) No 3a. How many years has this business been located in this area? Years b. How long have you owned/managed this business? Years c. Do you own another store? {1) Yes (2) No (If Yes, where?) B. (EMPLOY 1ENT) la. How many people do you employ b. Do you have part-time employees? (1) No (2) Yes # of employees ----2a. Do you have any problem obtaining employees? (1) Yes (2) No b. If Yes, t-!hy? ______ c : (REAL ESTATE) 1. Do you own or rent your . building? (If own) Do you: (a) 0\'m your building outriqht, or (b) with mortgage? (If rent) Do you: (c) Rent by the month, or (d) Have a lon g -term lease? (e) Other --------------

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2. (If you lease) when does your lease expire? ---------------------------3. Do you feel that this space is (a) adequate (b) inadequate, or. (c) excess f o r your present needs 4. How much square footage d o you have at this location? ------------------5 . W hat i s y o u r rent per sq . ft. OR your monthly rent o r mortgage p ayme nt ? 6. Do you plan to change your line or typ e of m e r c h andi se i n the futu re? (a) Yes (b) N o (c) Not applicable (If Yes) what changes would you make? 7. In the last three years, has your rent (circle number): Rents in area Your ren t (a) Increased significantly 1 1 (b) Increased moderately 2 2 {c) Rem ained the s a m e 3 3 ' (d) Decreased moderately 4 4 (e} Decreased significantly 5 5 {f) Don't know 6 6 D. (TRANSPORTATION ) 1. Do you own or lease parking for your (a) customers Yes or N o (b) employees Yes or N o 2. How many of your employees, including yourself, drive to work? -------------3a. When is parking most likely to be a problem for your customers (c ircle number): Mornings Afternoon Weekdays { 1 ) Saturday (4) Sunday (7) b. What causes this problem? 4. Are there any traffic proble m s in this area (1) Yes (If Yes) What are these problems, ( w here and w hen)? (2) (5) (8) Evening (3) (6) (9) (2) N o

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E. (DAYS AND HOURS OF OPERAllUNJ 1. Which days of the week are you closed? (a) Mon (e) Fri (b) Tues (f) Sat (c) Wed (g) Sun (d) T h ur 2. Generally, which hours during the weekdays are you open? ___________ am/pm to _____________ am/pm 3. Are you open year-round? {a) Yes (b) No (If no) which months are you c 1 os ed ? __________________________ _ F. (CUSTOMERS) 1. do most of your regular customers come from: (a) The immediate neighborhood (b) The surrounding area of (c) Outside of Northeast Denver (d) Other 2. If you had to pick the two age and family groups you are most trying to serve, which of these would you pick? (Mark 1 next to first choice, 2 next to second choice) (a) Senior citizens ( ) (f) Teenagers ( ) (b) Middle age family ( ) (g) Children ( ) (c) Middle age single ( ) (h) Other businesses ( ) (d) Young family ( ) ( i) None ( ) (e) Young single ( ) {j) All ( ) 3. From this 1 ist, what do you feel are the two most important reasons why people would do business here: (Circle two) (a) Price (e) Store appearance (b) Selection (f) Habit (c) Convenience (g) Personal attention (d) . Quality Goods and Services (h) Other

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BETTER Do you expect your future business trend to be:(a) Do you expect the future trend of the business in this area to be: (a) lWRSE (b) (b) SAME (c) (c) 2. (a) From this list, which is causing you the most trouble? Please choose up to three. (Mark Them) ( ) (1) Getting adequate space ( ) (2) Finding qualified employees ( ) (3) Poor location in shopping area ( ) (4) Cash flow problems ( ) (5) Competition from other enterprises ( ) (6) Crime ( ) (7) Marketing ( ) (8) Insurance ( ) (9) Credit from suppliers ( ) (10) Bookkeeping ( ) (11) Conditions of business district ( ) (12) Parking ( ) (13) Changing neighborhood ( ) (14) Other (b) Which of these gives you the most trouble? (Mark 1 next to the one that gives you the most trouble). 3. Name one or two kinds of retail businesses you would like to see move into this area ----------------------------------------------------

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business? Choose up to four. { ) (1) Increase parking ( ) (2) Improve traffic control ( ) (3) Incr eas e pedestrian access to shopping area ( ) (4) Reduce customer per ception of crim e ( ) (5) Better district sign identification ( ) (6) Improve appearance of individual businesses ( ) (7) Improve appearance of arEa ( ) (8) Reduce residential or non-retail storefronts in business area ( ) (9) Greater variety of goods and services in the area { ) (10) More consumers with sufficient income in neighborhood ( ) ( 11) Improve total business area image ( ) (12) Reduce crime (b) Which improvement would most benefit your business? (Mark 1 next to it) 5. (a) Are you a member of a local business or merchants association? (1) Yes (2) No (b) (If yes) which association? -----------------------------------I. (FINANCIAL) 1. During the next year or so, do you plan or have you recently completed, any of the following improvements to your business? ( ) (a) Physically improve your business (remodel, redecorate) ( ) (b) Physically expand your business ( ) (c) Open a new business ( ) (d) Relocate to a better site ( ) (e) Develop new products or services ( ) (f) Reach n e w market s ( ) (g) Other ( ) (h) No plans

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Continued from I. (FI NANCIAL): (If no p lans) Under what conditions w ould you consider undertak ing these physical i m prove m ents? ------------------------------------------2. In o r der to accomplish th e se improvements, a p prox i mately how much money would you need? (Circl e one) (a) I ian e (b) N o estimate at t h i s time (c) Under $ 25,000 (d) $25, 000 to 49,999 ( e) $50,000 to 99,999 (f) $100,000 to 249,999 (g) $250 ,000 to 499,999 (h) Over $ 500,000 3. To obtain this m o ney do you plan to: ( May choose more than one) {a) App l y for a com mercial loan {b) Finance within your business (c) Appl y f or a g overnment lo a n (d) O b t ai n a personal lo a n (e) Unsure 4. Have you ever applied for a Small Business Assistance loan? (a) Yes (b) No (if yes) what was your experience with SBA? M. ( C R I 1 1 E ) 1. Do you feel crim e is a problem in this area? (a) Yes (b) No (If yes) which types of crime present the most problems? 2. (If yes) Have you taken any of these preventative actions? (Circle) YES NO (a) entail you r hours of operation -12 (b) Chan g e you r ways of displaying (c) I nstall prote c t ive measures f or you r s t or e 1 1 2 2 3. ( a ) Have you r e por t e d all of crime in ycur busi ness i n thr. last tv1o y ears? (1) Yes ( 2 ) N o ( 3 ) crim2s have o c cur-red ( Skip to 5) (b) (!f r;o) vil1ic1J type of c rimes h(}Vc you not rcport2d?_ -------------------------------

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(c) 4 . (If yes t o 3a) (a) Did you ca 11 the police during or immediately after the crime occurtence? ( 1 ) Yes (No) ( b) (If yes ) did the police re spond in an adeq uate manner? ( 1) Yes (2) No (3) Unsure 5. If you were endangered in your business, do you feel the shoppers or other merchants in this areQ w ould come to your assistance? {a) Yes (b) N o (c) Unsure 6. Which tim2 of day are you most concerned about crime? (Circ l e one) (a) morning (b) early afternoon (c) late afte rnoon (d) evening 6 (e) night or after hours 7 . What actions do you feel are needed to improve the crime situation in this area? --------------------------------------------------------N. (INSURANCE) 1 . Which of the following types of ins urance do you have? (a) Fire (b) Theft (c) Liability (d) None 2. Have you been refused in surance for your business? (a) Yes (b) No (c) Don't kno w J . (ADVERTISING AND 1 . D o you currently advertise? ( a) Yes (b) No 2 . (If yes) Wha t type o f advertising do you utilize and how often? TYPE HOW OFTEN

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3. For the future, which typ e of advertising are you considering or w ould you like t o explore? ----------------------------------------------4 . (a) Do you feel that the (local neighborhood new spaper) is a good mediu m to reach potentia l customers? (l) Yes (2) No (b) 14hy? -------------------------K . (ENERGY) 1. Approximat ely how much money do you spend per m onth on lighting, hot water and heating in your business? ______________________________________ __ 2. What type of fuel d o you use to heat your business? (a) Natural (b) Electricity (c) Oil (d) Other -------------------3. Have you retrofitted your busi ness with any energy saving devices? ( a ) Yes (b) No L. ( GOVERN 11E H ) 1 1. What type of public physical inprovements (i.e., traffic controls, parking, crossw alks, sidewalks) are needed in this area? (List the type of improvement and where) -------------------------------2. Which publi c services (i . e., g a rba g e collection, loan packag ing, police, fire) need improvement in this area? ---------------------------------3. Are the re addition a l things government could do to assist you and other businesses in this area? -------------------------------------------4. Is there anything you would like to mention about doing business in this area that was not covered in the survey? ------------------------------N . (STATISTICAL TIO :) 1. P.acc 0 f O'mer \ lhi t e !'.sian A m e r i c rl n I n d i a 11 ----2 . S e x of ovmer 3 . l ge o f c.:nf::r ____ ( apj)r o xirnai.el_i)

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BUSINESSES ON E. 13th AVENUE. 1. Do you regularly shop at the following E.1Jth Ave. businesses? (check the ones you shop at) Howerds'Liquors Sisko's Cafe Wax Trax ---Mutual Cleaners ---Beauty Salon ---Bills Bump Shop Lunar Patterns ==:Penn Garage House of Draught ___ ?-Eleven ___ Jim Dandys 2. What form of adv e r tising influences you t o shop E. 1 Jth A ve. businesses? ( check one) Newspaper ---(which p aper) direct mail flyers ---word of mouth ==:other( ) J. When you stop at one of the businesses along E. 1Jth Ave. is it generally because: (check one ) you specifically were headed there you just happened to stop by on your way somewhere else 4. When you've shopped along E. 1Jth Ave. was it generally because: (check one) ___you live in the area ___you we r e on your way downtown 5. When you're shopping along E. 1Jth Ave. do you generally: (check one) ___ stop at just one place ___ make several stops *THE NEXT SECTION WILL ASK FOR YOUR VIEWS OF THE AREA IN REGARDS TO WHAT SERVICES ARE NEEDED VS. WHAT SERVICES ARE NOT 1 . What types of services do you think are (check as many as you want) drugstore ice cream parlor ---hardware store ---liquor store ---bakery ---bar ===grocery store ==:shoe repair laundromat savings & loan needed on E. 1Jth Avenue? restaurant ---florist gas station ---2nd hand store others( ___________________ ),( ___________________ ),( ______________ __ 2. Of the i tems you checked, which 2 are most needed? 1. -------------------------------2. -------------------------------J. Would you like to see a restaurant/lounge in this area? ___ yes unsure no Ja) IF YES, should it ___ carry out or eat there only or both feature: ___ fancy meals or ___ simple meals alcohol or no alcohol

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Jb) IF Y ES, what kind of food would you like to it serve? (what natjonality or style) 4. What kinds of businesses would you not want to see along E. 1Jth Avenue? 5. 1 . ______________________________ __ 2. ________________________________ _ J. What do you like about shopping on the E. 1Jth Avenue business strip? ___ variety ___prices others: convenience =:=friendly service -----------------------------no waiting 6. Are you g e nerally satisfied w i t h the hours that the busunesses on E. 1Jth Ave. are open? ___ yes unsure no 6a) IF NO, do you want them open: earlier later both 7. Do you see any of the following factors as drawbacks to shopping on E. 1Jth Avenue? inadequate parking personal saftey high p r ices ---narrow sidewalks =:=appearance of stores ___ heavy traff ---insufficient variety others: ------------------------------8. Where else do you generally shop for the kinds of products and services that are available on E. 1Jth Ave.? ___ other neighborhood commercial areas downtown =:=shopping centers ___ a variety of places Ba) What do you like about those places as opposed to E. 1Jth Avenue businesses? 1 . -----------------------------2. --------------------------------9. What changes would you like to see on E. 1Jth Ave.?

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*IN THIS LAST PART, WE'LL ASK A FEW QUESTIONS ABOUT YOU. 1. What is your age? 2. Your sex? under 20 =20-29 male female 30-39 =40-49 ) . To which racial/ethnic group d o you belong? 50-59 -60+ white chicano oriental o t h er( ---black ---native American 4 . What is your marital status? married widowed separated ==:single ---divorced ===living together 5. On wha t block do you live? (example: 1300 block of Penn.) 5a) How long have you lived at this. address? _________ yrs . 5b) Do you plan to b e living at this same address a year from now? 6. ___ yes unsure no Approximately what is below $5,000 -5,001 to 7,500 -7,501 to 10,000 ---10,001 to 15,000 the annual income of your household? $15,001 to 20,000 ---20,001 to 30,000 7. Are there any comments you would like to make? THANKS FOR YOUR COOPERATION!!

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INFORMATION SHEET TENANTS MOST FREQUENTLY FOUN D IN EIGHBO R HOOD SHOPPI G CENTERS Median M e dian Sales an Tota 1 Tenant Classification Ran k GLA* V o 1 u m e per Rent per squa r e foot square foot GLA GLA General Merchandise Variety Store 19 1 0,1 60 $ 3 8 .00 $ 1 . 80 Foo d Supermar ket 22,648 1 7 8 .73 2 . 3 8 Food Service Restaurant without liquor 7 2 , 400 71 . 9 5 4 .5 9 Restaurant with liquor 9 3,600 75.65 4 .60 Fast food/Carry out 8 1 ,410 96.29 5.69 Clothing Ladies ready to wear 6 1 ,680 50.04 4.00 Home Radio, TV, H i Fi 14 2 ,000 98.14 3 .76 Building Materials/Garden Hardware 1 8 6,000 34. 8 9 2 .5 5 Cards and Gifts 1 6 1 ,810 39.98 4.04 and Cosmetics Jewe 1 ry 20 970 61 . 32 4.50 Liguor Liquor and vii ne 12 2,300 130.72 4 .20 Drugs Super Drug 17 15,000 8 9.33 2.51 D rug 5 4 ,900 7 8 .31 2 .95 *GLA =Gross Leasable Area

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Tenant Classification Personal Services B e aut y Barber Clean e r and dyes Lau n dry F i nancial Banks Rea 1 estate Offices Medica 1 and denta l Rank 2 3 4 1 0 13 15 11 Median GLA* 15,000 640 l ,600 l ,5 00 2,539 1 ,200 1 ,06 4 Median Sales Volume per square foot G L A $ 8 9 .33 78. 31 33 .14 16.76 Sour c e : U . S . N eighborhoo d Shopping Center s ( bas e d on data collected i n an Tota 1 Rent per s q uare foot GLA $1 . 80 2 .95 3 .60 3 .37 4 .00 5.1 9 4 .5 2 1 9 78)

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INFORMATION SHEET TRADE AREAS T h e following rnay be used as a "rul e of thumb.'' It does provide a basis by which to initially plot a market area for a neighborhood business district. H ard data on the geograp hic boundaries shoul d b e obtained by a consumer surve y or other tec hnique . Generally, the anchor store of a business district determines the size of the trade area for stores of its own type. In most neighborhood business districts, this will be a small-size grocery. They are considered a convenienc e store. Conveni ence goods are consumables that are bought fairly frequently and for which peopl e generally do not shop around . Shopper goods are items, suc h as clothing and furniture , for which people usually do comparison s h opping. Type of Store CONVENIENCE GOODS Bakery Candy Sto re Delicatessen Drug Store ( traditi ona 1) (multiline) Fish Market Grocery (3-5,000 sq.ft.) (5-15,000 sq.ft.) Hardware Store (traditional) (multil i ne) Liquor Store Auto Repair Barber Shop B ea uty Shop D ry Cleaning Gas Station Laundromat Shoe Repair Radius of Trade A rea in block s* 5 5 5 5 8 5 5 8 5 8 4 5-10 5 5-10 5 5 5 5 Type of Sto re SHOPPER GOODS Apparel Sto re Appliances, radio, TV Book and Stationery Camera Store Department Store (large) Furniture Store Gift Shop Record Store Shoe Store Sporting Goods Variety Store Radius of Trade Area in blocks 5 -10 8 9 10 9 24 8 -9 5 5-10 8 9 9 8 Source: Retail Location Analysis Manual and Retailing in Low-Income A reas * 8 blocks = 1 mil e

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0ER CAPITA BY C.!.EGO R Y . 1980 Kind of Bus i ness Expenditures Total R etail Building Mater i a ls, Hard ware, and Garde n Supply Stores ( total) Paint, glass and wallpape r stores Gener-31 n e rchandise Stor
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CONSUMER EXPENDITURES AflNUAL EXPEflD!TURES* BY FAMILY INCOME BEFORE TAXES, 1980 Percent P ercen t Percen t Percent P ercen t of of of of of S6 ,750 Income SlO ,600 Income $14,500 Income 21,500 Income $33,500 2. 4 2 . 7 3.2 3.6 Average Family Size Food at home 1.9 Sl , 486 21 0 7"'. $1 , 899 17 0 $2, 056 S2,345 11 0 0 % $2 , 896 8 0 Food away from home Liquor Tobacco produ c t s Laundr y and dry c l ean ing Furniture Major appliances Television Household textiles and f l ocr coverings Other house h old furnishings and equipment Men's a n d boys' clothing Women's and girls' c l othing New and used automobiles Gas, repairs and insu r ance Books and magazines 3 3 9 5 0 0 91 1 0 3 153 2 . 2 118 1.7 83 1.2 83 1 .2 45 0.6 6 8 1.0 so 0 . 7 130 1 0 9 256 3 . 8 404 6 . 0 592 8 . 7 43 0.6 d 3 7 4 0 1 144 1 0 4 194 1 . 8 134 1 0 3 122 1 .1 128 1. 2 66 0 .6 91 0 0 9 54 0.5 2 0 8 2.0 338 3 . 2 623 5 . 9 296 8.5 58 0.5 599 4 01 169 1 0 2 233 1 0 6 146 1 . 0 8 8 1 .3 161 1. 1 8 5 0.5 1 O S 0. 7 89 0 . 6 272 1 0 8 433 2 . 9 1 ,001 6. g 1 ,18 0 8 . 1 72 0.4 8 2 8 241 2 7 9 157 227 202 95 156 140 417 543 1 ,511 1 ,573 87 3 .'? 1. 1 1.3 0.7 1.0 0.9 0 .4 0.7 0.5 2.0 2.6 7. 1 7 . 4 0.4 Source : U.S. Department of Labor Statistics, Consumer Exoenditure Survey, 1972-73 *(Figures updated to reflect increase in Consumer Price Index) 1 , 159 3 0 4 299 0 . 9 333 1.0 180 0.5 374 1.1 2 4 8 0 .7 118 0.3 275 0 0 8 210 0 . 6 61 7 1. 8 3 . 4 2.4 1 ,985 50 9 2,098 6.3 126 0.4 Computation: Annual median household income x approximate percentage expenditure per retail category= averase house hold expenditure per retail category ; average household expenditure per retail category x number of h ouse h o lds i n t rade area s total demand per retail cat e gory . (Note: per cen t o f income s hould b e adjusted when m e dian house h o ld in come falls b etween famil y income categor i es }

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INFORMATION SHEET BUS I lESS PLAN T h e key to busines s financing once a d ec i sion has bee n made on finan c ing method and funding s o urce is th e development o f a " sound " business pla n. A business plan describes a company's past and current operations, then demonstrates how the desired investment or loan will further the company's goal and repay the the investor or loaner. The busi ness plan is a marketing tool which an entre-preneur uses to sell his/her busi ness idea. As part of a loa n package, the business plan must answer t h e why, w here and h o w questions t hat a request for a l oan usually crea tes. A b usiness plan s h ould follow the outl i n e b e l o w . SAMPLE BUSINESS PLA. l OUTLIN E I. Summary A. Business description 1 . Name 2 . Location 3. Product 4 . Market and c ompetition 5. Management expertise B. Business goals C. Summary of financial needs D. Earnings projections and potential return on investment II. Market Analysis A. Description of total market B. Indu s try trends C . Target market D . Competition IV. Product or Services A. Description of product line/ se r vices B. Comparison to competitor's

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V. Marketing Strategy A . Overall strategy B. Pricing policy C. Sales terms D . M e thods of S elling, distrib ting and services VI. Management Plan A. Form of business organization B. Board of director composition C. Organization chart and responsibilities D. Resumes of key personnel E. Staffing plan/number of employees F. Facilities plan/schedule of upcoming work for next one to two years VII. Financial Data A . Financial history (five years to present) B. Five-year financial projections (first year by quarters; remaining years annually) 1 . Profit and loss statements 2. Balance sheets 3 . Cash flow chart 4. Capital expenditure estimates C. Explanation of projections D. Key business ratios E. Explanation of use and effect of new funds F. Potential return to investors compared to competitors and the industry in general

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INFORMATION SHEET Pro Form a Analysis A pro Forma is a simple and practical tool by which to d e t ermine if a new commercial vent ure has m erit and whether or n o t it makes good financial sense. Put simply, a pro forma determines if pr ojec ted r evenue will cover costs and still provide a desired r eturn on inv estmen t . It is an e xcellent "rule of thumb" t o use in business decision making. Information is particularly useful when dealing with banks and developers, each of whom are concerned about a project risk and return. A pro forma analysis provides a financial picture at a given point in time. It combines estimates of construction and financing costs, operating expenses and projected revenue. All cost and revenue estimates are based on assumptions (wage rates, construction costs, interest rates, etc.) common to the industry. Reader shoul d be aware that alternative pro forma should be developed using o th e r assu mptions as costs may change at any point i n a project's development . A ssumptio n s s h ould be spelled out as accurately as poss i ble and written t o justify all figures on the pro forma. The following is a genera l outline o f a pro forma analy s i s sheet which can be adapted for use by a n y businessperson.

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PROJECT DEVELOPM E N T COSTS A. Construction Costs (land c ost) ( site imp r o v e m e nt) (build in g cost) (rehabilitation cost) PRO FORMA ANALYSIS SHEET B. Non-Construction Costs (professional fees) (developer's overhead) (financing costs) (contingencies) C. Total Development Costs ( A + B) NET OPERATING D. Annual Gross Rent/Income (rent sales per sq.ft. X sq.ft, ) ____ _ E. Vacancy and Collection Allowance (percentage) -----F. Effective G r oss Income ( D & E) G. Operat ing Cost s (percentage of D) H. Net Operating Income ( F-G) ECONOf;l!C VALUE I. Capitalization Rate (negotiated percentage) J. Net Income (H) K. Economic Value ( J 7 I) FINAN CING L. Loan to Valu e Ratio M. Economic Value ( K)

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FINANCING N . M a x i mum Mortgage X L) 0 . Annual Debt Ser vic e (mortgage cons t a n t X N) NET CASH FLOW P. N e t Income (H) Q. Annual Debt Service R. Net Cash Flow (H-0) S UPPORTABLE DEVELOP M ENT BUDGET S. Equity at %Annual R e tu r n o n I nvestment (R 7 T. Amount (N) U. Total Development Budget (S + T)

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I NFORMATI O N SHEE T DESCRIPTION OF APPROPRIATE ZONE DISTRICTS 1. hat is zoning? Zoning d i vides t h e city into districts for different uses . It sets rules for what people can use land a n d buildings for, where they can build structures and h o w large th e y can b u i l d th e m . Thi s is d o n e to make s ur e th a t e v e ryone's safety and w elfare i s protected. S o m e a ctivities o r bui l dings d o not belong next to others, and zoning protects agains t this hap pening. T h e fol lowing inform ation e xplains t h e purpose and g eneral descripti o n of the various zone districts contained in the Denver Zoning Ordinance tha t apply to business districts. Zoning is a complicated subject. To learn more about zonin g a n d t o f i n d out for s ur e about c urrent re g u lations , you s hould cont ac t y our loca l Department of Zoning A dminis tration. T h e zone district explanation below has been prepared by the Zoning Revi e w Section of t h e Denver P l a nning Off i ce. B 1 Limited Office District This dist r i c t is in t ende d t o s erve a s a traditiona l zone between business a n d residential areas, and should be limite d to r e lati vel y s mall tracts. I t should be l ocated near hospitals and establi s h e d business centers, although it may be created as a f ree standing zone. Building height controlled by bulk standards and open space requirements. Building fl oor area cannot exceed the site area. B-2 N e ighb orhood Business Dist r i c t This distri c t is in t ende d to b e a loc ation for convenience shopping, service and office establishments providing for the daily or weekly " conven i e n c e " needs of residents from adjoining r esidential are a s . Buildi n g h eight controlled by bulk s t a ndards a n d open space r equire m ents. Buildin g floo r are a c a nnot exc eed th e site a re a .

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B-3 Shopping Center District This district is intended to serve as the location for large unified community shopping centers permitting a wide variety of shopping, service and office activities with large parking areas. Building heigh t is controlled by bulk s tanda rds and office activities with large parking areas. Building floor area cannot exceed the site area . B 4 General Business District General retail, wholesale, serv ice and office activities, and certain industrial uses. Building floor area cannot exceed two times the site area. District regulations contain no bulk, open space, or setback requirements. The establishment of additional B-4 zoning along arterial street is discouraged by the Denver Comprehensive Plan. Also, the Zoning Code, Section 618. 2-6 states that no B-4 should be established unless there is a clear and demonstrable n ee d in the area for it. D welling units, single and multiple, now permitted. B-A-1 Arterial Offi ce and Institutional Use District Allows banks, offices, hospitals, clinics, institutions, churches, apartments and office service uses. Requires 100 feet of arterial street frontage. Maximum lot coverage is 30% . Building floor a rea cannot exceed two times the site area. Building height is controlled by bulk standards. Maximum residential density is unspecified and is determined by the size of units and t h e factors mentioned above. Front setback areas are required for landscaping. B-A-2 Arterial Service District This district is intended as a tourist oriented zone, allowing only hotels, motels and restaurants with automobile service stations. Requires 100 feet of arterial street frontage. Zone lot coverage not to exceed 30% . Building height is controlled by bulk standards. Front setback areas are required for landscaping. B-A-3 Art erial General Commercial District This district is designed to accommodate those uses which are oriented toward thw motorist and residents of nearby neighborhoods but which uses are not normally part of shopping centers. Included among such uses are bowling alleys, theaters, night clubs, drive-in restaurants, and service stations. Setback areas are require d for landscaping. Ground coverage by buildings cannot exceed 30% of the site. Building height is controlled by bulk standards.

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B-A-4 Auto Sales and Service District This district provides an area designed particularly for the special need s and characteristics of auto sales and service activities. The C omprehensive Plan encourages t h e establishment o f this district in conc entrated centers rather than in ali ear a r rang e ment along arteria ls. Ground c o ver a g e by structure s canno t e x ceed o f th e site area. Building height is controlled b y b ulk standards. B-5 Central Business District Permits all of the busines s , office and light industrial uses whic h are permitted in the more restricted "B" zones along with residential and educational uses. Maximum floor area cannot exceed ten times t h e site area, plu s floor area premiums for th e development of plazas, arcades, atriums, etc. B 7 Business Restoration Zone This district is intended to preserve and improve older structures which are architecturally and/or historically significant. This district allows light industrial, general retail, wholesale, services, offices and high density residential uses. Additional floor area is allowed with the development of resiaential units, underground parking or open space areas. Building floor areas cannot exceed two time s the site area. However , with premiums the floor area can be increased to four times t h e site area. B-8 Intensive General Busines s/Very High D e nsity Residential Dist rict Permits all types of businesses, certain industrial uses, and high density residential and office uses. Intended for application in large business areas and around the Central Business District. Total floor space cannot exceed four times the area of the site. I 0 L i ght Industrial District A transitional district between intensive industrial and residential districts. All ows limited manufacturing, wholesale and retail activities, offices and motels. Building height i s controlled by bulk plane standards and setback requirements for buildings. Floor area cannot exceed of th e site area .

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I-1 General Industrial District Allows many manufacturing, warehousing and wholesaling activities, along with limited retail and services uses for the benefit of the area employees. Building floor area cannot e x cee d two times the s ite area. Generally no setbac k require m e nts . I-2 H eavy Industrial District Allows all manufacturing, warehousing, wholesaling and minera l extraction activities. Limited retail and service uses for the benefit of area employees are permitted. No limitations on the size or location of buildings. This district should not be located adjacent to residential or business zones. P-1 Off-Street Parking District Allows parking lots and structures. Bulk and setback regulations apply to buildings. This zone is intended to provide needed business parking \vithout the expansion of the business zone, i.e., a buffer between business and residential uses. Requires visual barriers adjacent to residential uses. PUD Planned Unit Development This is a special zone district category which entirely substitutes for the more rigid limitations of other districts. The applicatio n for any individual PUD rezoning application must specify height of structures, amount of parkin-, setbacks, density, usage, etc.