Brad Segal, Progressive Urban Management Associates Denver, October 7 Economic Development Council of Colorado New Partnerships for Development

Brad Segal, Progressive Urban Management AssociatesDenver, October 7

Economic Development Council of Colorado

New Partnerships for Development

Business District Development Framework

Organizing for Each Phase of a District’s Growth Cycle…


Organizing for Each Phase of a District’s Growth Cycle…


District Lifecycle General Conditions

Stagnant Challenged, with high vacancies, underutilized properties, uninviting public realm and poor regional image

Growing Up and coming, with a sprinkling of new businesses, pioneering new investments and an image of a district in transition

Mature Established, with a strong mix of retail, restaurants and jobs, inviting public realm and strong regional image




Stagnant Districts

Private Sector Champions?

Several local leaders motivated to change the district, but high levels of apathy and cynicism among stakeholders

Program Priorities

• Attract new investment & stabilize the environment• Create confidence among local stakeholders• Combat regional stigma

Organizational Options

• Appointed commission• Community development corporation• Redevelopment agency• Main Street™ program

Tools & Resources

• Tax increment financing• Local government support, both money and services• Charitable grants• Earned income from development

Successful Strategies: Stagnant Districts

Brush!► Main Street™ program formed in 2001► Façade improvement grants to 12 properties► Streetscape enhancements underway► Program purchased/renovated a building► Spirit of Brush Award► A sustainable champion for the district


Brush!► Main Street™ program formed in 2001► Façade improvement grants to 12 properties► Streetscape enhancements underway► Program purchased/renovated a building► Spirit of Brush Award► A sustainable champion for the district


Community Development Corporation (CDC)

Non-profit community organization with public/private orientation…

Oriented to advance real estate and business development

Provides planning and project development services

Facilitator and problem solver for otherwise challenging projects

Funding Source: Contributions, grants, fees and earned income

Community Development Corporation (CDC)

Non-profit community organization with public/private orientation…

Oriented to advance real estate and business development

Provides planning and project development services

Facilitator and problem solver for otherwise challenging projects

Funding Source: Contributions, grants, fees and earned income



El Cajon CDC, El Cajon, CA► Formed in mid-1990s, also includes BID, Main Street™ program, contract with

local redevelopment agency to manage TIF► Clean & safe, business development, affordable housing and workforce training► Downtown outperforms city in… Property values (181% vs. 75%) Sales (66% vs. 45%) Creation of 600 new jobs


El Cajon CDC, El Cajon, CA► Formed in mid-1990s, also includes BID, Main Street™ program, contract with

local redevelopment agency to manage TIF► Clean & safe, business development, affordable housing and workforce training► Downtown outperforms city in… Property values (181% vs. 75%) Sales (66% vs. 45%) Creation of 600 new jobs



Denver Civic Ventures► 501(c)3 CDC formed in 1982► Has evolved over time to address variety of civic needs 1986, 2007 Downtown Plans 1980s Multi-bank loan program 1990s Housing development 1990s Project development 2000s Planning 2010 Public Market?


Denver Civic Ventures► 501(c)3 CDC formed in 1982► Has evolved over time to address variety of civic needs 1986, 2007 Downtown Plans 1980s Multi-bank loan program 1990s Housing development 1990s Project development 2000s Planning 2010 Public Market?


Finance Tool: Community Capital

Mobilizing Local Capital & Resources…

Variety of ownership models – community-owned corporations, cooperatives, investment fund

Local incentive for small business development, marketing Provide both equity and debt

Funding Sources: Individuals, banks, institutions, foundations

Finance Tool: Community Capital

Mobilizing Local Capital & Resources…

Variety of ownership models – community-owned corporations, cooperatives, investment fund

Local incentive for small business development, marketing Provide both equity and debt

Funding Sources: Individuals, banks, institutions, foundations



Evergreen Cooperative, Cleveland, OH► Creating community-owned businesses to serve local institutions► Identified $3 billion in outsourcing by local hospital, university► Cleveland Foundation creating new green businesses to fill gaps► Examples include commercial laundry, solar energy producer► Cooperative ownership structure keeps jobs local, ensures long term

commitment to local growth► Businesses intended to be profitable, loan payments seed new firms


Evergreen Cooperative, Cleveland, OH► Creating community-owned businesses to serve local institutions► Identified $3 billion in outsourcing by local hospital, university► Cleveland Foundation creating new green businesses to fill gaps► Examples include commercial laundry, solar energy producer► Cooperative ownership structure keeps jobs local, ensures long term

commitment to local growth► Businesses intended to be profitable, loan payments seed new firms





Growing Districts


Core group of vested property and business owners, with energy from new entrepreneurs. Motivated to explore public/private approaches to improve the district.

Program Priorities

• Attract new businesses & market the area to consumers• Beautify and improve the public realm• Provide meaningful participation for new owners and businesses• Convey a new emerging image


• Membership organization• Business improvement district• Downtown development authority• Foundation or 501(c)3 subsidiary

Tools & Resources

All of the preceding plus:• Property or business assessments• Revenue generating promotions and special events• Membership dues

Business Improvement Districts (BIDs)

Quasi-public special district governed by ratepayers…

Provides funds to manage, market and maintain the downtown environment -- “CAM” fee for downtown

Self-governed, self-imposed, accountable Need:

1) private sector champions;

2) supportive local government;

3) staff and financial resources;

4) tradition of public/private partnership


Quasi-public special district governed by ratepayers…

Provides funds to manage, market and maintain the downtown environment -- “CAM” fee for downtown

Self-governed, self-imposed, accountable Need:

1) private sector champions;

2) supportive local government;

3) staff and financial resources;

4) tradition of public/private partnershipNew Partnerships for Development


Key messages during the Great Recession…

Ability to stabilize & manage the environment Now is the time to strengthen competitive advantages Unified downtown will make us more influential Ability to leverage resources, challenge and lead Accountability Something we can control in an uncertain and changing economy


Key messages during the Great Recession…

Ability to stabilize & manage the environment Now is the time to strengthen competitive advantages Unified downtown will make us more influential Ability to leverage resources, challenge and lead Accountability Something we can control in an uncertain and changing economy


Successful Strategies: Growing Districts

Havana Corridor BID► BID formed in 2007► 4.5 mills annual budget of

$325,000► Services include marketing,

economic development, special events & establishing a district identity


Havana Corridor BID► BID formed in 2007► 4.5 mills annual budget of

$325,000► Services include marketing,

economic development, special events & establishing a district identity


Downtown Development Authorities

Can often combine advantages of TIF & BIDs…

Differs from state to state Most allow TIF and a mill levy Generally must implement a development plan Governance can be more public-sector connected Generally does not have power of eminent domain Now is the time to establish the base year for TIF

Downtown Development Authorities

Can often combine advantages of TIF & BIDs…

Differs from state to state Most allow TIF and a mill levy Generally must implement a development plan Governance can be more public-sector connected Generally does not have power of eminent domain Now is the time to establish the base year for TIF


Finance Tools: TIF

Basics of tax increment financing (TIF)…

Uses future increases in property and/or sales tax to finance improvements today

Common to bond with TIF Tool for “bricks & mortar” –

infrastructure & buildings Now is the time to establish

a base year

Finance Tools: TIF

Basics of tax increment financing (TIF)…

Uses future increases in property and/or sales tax to finance improvements today

Common to bond with TIF Tool for “bricks & mortar” –

infrastructure & buildings Now is the time to establish

a base year



Nederland DDA► Formed in 2005 following market

study► Includes 5 mills plus TIF► Just completed nearly $1 million

in sidewalk reconstruction► Provides leadership for downtown

improvements


Nederland DDA► Formed in 2005 following market

study► Includes 5 mills plus TIF► Just completed nearly $1 million

in sidewalk reconstruction► Provides leadership for downtown

improvements



Colorado Springs DDA► Formed in 2007, provides financial incentives to promote development

via underwriting/partnering on development and rehab► Also has BID, 501(c)3 foundation ► Challenge Grant Program:

Provides matching funds to property and business owners (private and public) for improvements to facades, landscaping, lighting, signage, etc.


Colorado Springs DDA► Formed in 2007, provides financial incentives to promote development

via underwriting/partnering on development and rehab► Also has BID, 501(c)3 foundation ► Challenge Grant Program:

Provides matching funds to property and business owners (private and public) for improvements to facades, landscaping, lighting, signage, etc.





Mature Districts


Experienced core group of vested property and business owners with a history of being organized and participating in public/private partnerships.

Program Priorities

• Retain & grow businesses• Market the area to consumers• Keep organization fresh to keep stakeholders engaged• Strengthen a positive image


• Entrepreneurial holding company• Parking districts• Events production company• Transportation management organization

Tools & Resources

All of the preceding plus:• Parking revenue• Local improvement bonds• Merchandising the district

Successful Strategies: Mature Districts

Cherry Creek North BID► 16-block retail and restaurant district, 320 independent businesses► Generates approximately $2.3 million in revenue► Passed $18.5 million bond issue to streetscape entire district► BID issued bonds in 2009 (also did $12 million bond issue in 1989)


Cherry Creek North BID► 16-block retail and restaurant district, 320 independent businesses► Generates approximately $2.3 million in revenue► Passed $18.5 million bond issue to streetscape entire district► BID issued bonds in 2009 (also did $12 million bond issue in 1989)



Downtown Tempe Community, Inc. – Tempe, AZ► Management, marketing of all public, some private parking in downtown

Tempe (8 lots/garages in total)► Contract with the City – 6% of parking revenues, management fee► All parking managed by DTC

part of “Park-It Program” including First Hour Free, validation program


Downtown Tempe Community, Inc. – Tempe, AZ► Management, marketing of all public, some private parking in downtown

Tempe (8 lots/garages in total)► Contract with the City – 6% of parking revenues, management fee► All parking managed by DTC

part of “Park-It Program” including First Hour Free, validation program


Holding Company Structures: Denver, COHolding Company Structures: Denver, CO


DOWNTOWN DENVER EVENTS

DOWNTOWN DENVER EVENTS

DENVER CIVIC VENTURES

501(c)(3)

DENVER CIVIC VENTURES

501(c)(3)

DOWNTOWN DENVER

PARTNERSHIP

501(c) (6)

DOWNTOWN DENVER

PARTNERSHIP

501(c) (6) by contract

VisionCommunicationsAdministration

Festivals & Events

DOWNTOWN DENVER, INC.

501(c)(6)

DOWNTOWN DENVER, INC.

501(c)(6)

AdvocacyMarketing

Economic DevelopmentTransportation

HousingSpecial ProjectsTransportation (TMO)

MaintenanceMarketing

Mall Vending

MEMBERSHIPS

$$

GRANTS, CONTRACTS, SPONSORSHIPS$$

ASSESSMENTS

$$

BID

(BID)

BID

(BID)

Brad Segal, Progressive Urban Management [email protected] www.pumaworldhq.com

Economic Development Council of Colorado


Documents

Brad Segal, Progressive Urban Management Associates Denver, October 7 Economic Development Council of Colorado New Partnerships for Development