Building Your Local Economy ThroughAsset‐Based Economic Development

N E W M E X I C O M A I N S T R E E T | A P r o g r a m o f t h e N e w M e x i c o E c o n o m i c D e v e l o p m e n t D e p a r t m e n t

Rich WilliamsAmy M. BarnhartEduardo Martinez

The MainStreet Program

Real Places Doing Real Work to Revitalize Their E iEconomies

and Preserve Their Character

Specifically, MainStreet is: 1. A proven strategy for revitalization (Four Points Approach). 2. A powerful network of linked communities.3. A national support program that leads the field.

Main Street is an asset-based economic development approach to restoring a thriving economy in New Mexico communities

*National Main Street Center

2015 MainStreet Communities

MainStreet Economic Impact – 28 NM Communities

2013-2015 Performance (aggregate):

335 Net new businesses

449 Building rehabilitations

$127 Million New building construction

$42.6 Million Private sector economic reinvestment$42.6 Million Private sector economic reinvestment

$22.3 Million Public sector economic reinvestment

1,634 New jobs (net)

103,000 Volunteer hours (> $2 million value*)

* Source: Independent Sector statistics

E‐Based Economic Development

• “Classic”, large-scale economic development

• Manufacturing, construction, infrastructure and transportation

• Recruits external business (tech, auto), focuses on export of goods

• Leverages public resources for infrastructure and incentives (tax abatements, job training funds, etc.)

Asset‐Based Economic Development• Focuses on “bottom up” community

driven economic development projects

• Focuses on a community’s naturalFocuses on a community s natural environmental, socio cultural, and economic assets and how these can be leveraged into sustained economic growth and productivity

• Builds on existing local resources to strengthen local and regional economies; expands the small businesseconomies; expands the small business core of a community - retail, hospitality, entrepreneurism

• Leverages local investments (public and private) for economic projects.

Asset‐Based Economic DevelopmentFocus is on creating and

enhancing community treasures and assets

Collaboration and relationship-building is a driving force for change

Individuals in the community are seen as owners and producers, not customers

Assets represented by buildingsAssets represented by buildings, history, culture, people, policy-makers, groups, networks, and previous plans that already exist in the community.

Benefits of ABED• Long-term, sustained

economic growth

• Local return on investment

• Job creation and retention

• Increase in per capital income

N E W M E X I C O M A I N S T R E E T | A P r o g r a m o f t h e N e w M e x i c o E c o n o m i c D e v e l o p m e n t D e p a r t m e n t

• Increase in local tax base

• Strengthening of regional networks

Belen Hotel, Belen, NM

Benefits of the MainStreetAsset‐Based Approach

Local Business Community

• Healthy Business Climate

• Expanded Customer Base

• Vibrant Commercial District

• Growth Opportunities

• Stronger Business Environment

• Revitalized District Economy

• Increased GRT, Stronger Tax Base

• Restoration of Civic Places

• Access to State/Federal Resources

• Improved Quality of Life

• Stable population

Technical Assistance from NMMS

Successful ABED Requires. . .• Strong leadership at both the

local and regional levels

• Innovation

• Collaboration

• Rethinking of traditional economic development paradigms

• And like any form of

N E W M E X I C O M A I N S T R E E T | A P r o g r a m o f t h e N e w M e x i c o E c o n o m i c D e v e l o p m e n t D e p a r t m e n t

And, like any form of economic development, it requires funding! WPA-era Library, Clayton, NM

ASSET MOBILIZATION is an ACTION step that requires organizing and harnessing the relationships that exist within the community.

Individuals Physical Assets Associations

There are at least six categories of assets within any community:

Institutions Local Economy History/Plans

• Volunteers• Residents• Youth/Seniors

• Nat. Resources• Buildings• Infrastructure

• Chambers• SCORE• Civic Clubs

• Government • Cultural • Econ. Dev.Government• Educational• Public Services

Cultural• Art/Artisans• Agriculture• Services

Econ. Dev.• Infrastructure• Growth

N E W M E X I C O M A I N S T R E E T | A P r o g r a m o f t h e N e w M e x i c o E c o n o m i c D e v e l o p m e n t D e p a r t m e n t

Asset Mapping

Asset map created using Coggle.it

How about a hypothetical Asset‐Based Economic Development Project?

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Strategy: Adaptive reuse of a vacant building as a business incubator to expand district business mix

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Asset Inventory for Business Incubation Program

Individuals Physical Assets Associations

Institutions Local Economy History/Plans

• Home business owners/ entrepreneurs

• Property owners• Attorneys• Accountants

• Vacant buildings• Central location

• Chamber• Revitalization

Organization

• SBDC• City• County• NMSU

• Services • Master Plan• Annual Work

Plan

Asset Mobilization around a Business Incubation Program

• Using the identified assets • Create a network of experts forCreate a network of experts for

entrepreneurs to consult with for free or reduced rates

• Negotiate reduced rent rates with interested vacant property owners

• Utilize volunteers and donated goods where possible for physical improvements to buildingsp g

• Work with City/County to develop recruitment incentives

• Solicit existing businesses or new entrepreneurs to move into the space

Business Incubation Program

• Benefits

• Fill vacant building(s)

• Additional businesses in the district

• Draw additional customers to the district -- $$$

• Increase GRT -- $$$

• Increase Property Taxes -- $$$

• N d i b d h i• Nurture entrepreneurs and springboard them into bigger space and business expansion in the district

How does ABED support the MainStreet/ACD/Frontier Initiatives?

N E W M E X I C O M A I N S T R E E T | A P r o g r a m o f t h e N e w M e x i c o E c o n o m i c D e v e l o p m e n t D e p a r t m e n t

Asset‐Based Economic Development Strategies 

• Adaptive reuse of old buildings for retail stores, galleries, loft housing

• Recruit new businesses to expand pthe business mix and capture more sales to both local and visitor markets.

• Ensure that city hall and county offices stay downtown to maintain the district's position as the area's i icivic center.

• Rehabilitate our historic theaters for film and live performances to augment the community's entertainment offerings.

• Increase the sales revenues of locally-crafted arts and cultural products to visitors and on-line customers

ABED Example: Hotel Clovis• Landmark listed on the state

and national historic register sat vacant for 30 years due to remediation issues

• Acquired by city in 2003, it was eligible for a NMMS Capital Outlay Grant for remediation

• Public-private partnership was achieved via MRA designation

• Today Hotel Clovis includes a mixed-use space that includes housing (31 units), t f iliti d 8 000 ft f i l f l It i LEEDevent facilities and 8,000 sq. ft. of commercial space for lease. It is LEED

Platinum Certified and maintained designation on Historic Registers

• Two additional housing projects established in direct vicinity as a result - Clovis Lofts (29 units) and Andalusia (60 units)

• Large number of residents have purchased furniture from downtown stores and have frequented other downtown businesses

ABED Example: Luna Theater, Clayton

• Private owners were unable to afford digital conversion and the theater

• As a result, received LEDA Capital Outlay, as well as NMMS Capital Outlay grant for improvements and digital conversion

conversion and the theater was going to go dark

• Town of Clayton took ownership; amended LEDA to include cultural amenities

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• Town with a population under 3,000, maintains a entertainment venue, enhancing quality of life for locals, as well as surrounding rural communities

• Ticket sales increased by 40 percent post-conversion

• Historic Hotel Eklund, located across the street, purchased, restored and reopened; Additional buildings rehabilitated and reopened as retail businesses

ABED Example: Trinity Hotel, Carlsbad

• Built in 1892, building was decaying and on the verge of y g gbeing turned into a parking lot

• Bought by three partners in 2007, rehabilitated and reopened as boutique hotel and find dining restaurant

• Maintained status as listing on the Nation Historic register

• Business has been highly-successful, both restaurant and hotel

• Additional development has occurred both in additional fine dining restaurants and in vacant building across the street

• Creates potential for additional development, both private and public

ABED Example: Streetscape Improvements, Los Alamos• Municipally-adopted downtown

plan called for increased walkability and pedestrian friendliness in the district

• Streetscape assessment and improvement plan funded by 2012 NMMS capital outlay grant

• Since 2007, almost $500k in capital outlay received for improvements, including most recent $170k construction in 2014

• Improvements create a more unified and contextual “sense of place” and• Improvements create a more unified and contextual sense of place and guide future public and private development

• Streetscape seen as a thread to connect pedestrian traffic and economic activity throughout the district

• Public investment creates confidence in private sector to invest in property improvements and new businesses

So many other examples, too little time. . .

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The Public‐Private Partnership

CommunityStakeholders

Local Government Partner

• Philosophical Commitments/MOU’s• Coordination/Planning

State Gov’t

Local Gov’t

• Fiscal Agency for Capital Outlay $$

State Government Partner

• Technical Assistance (NMMS)• Capital Outlay $$• Coordination, Reporting• Compliance

Infrastructure and

Revitalization Projects

Revitalization Corporation

Local Revitalization Partner

• Implement Projects• Resource Development• Planning, Statistical Reporting• Coordination w/City, State• Compliance

Raton Great Blocks – Public Infrastructure Catalyst

• Partnership: City of Raton, NM EDD/MainStreet RatonEDD/MainStreet, Raton MainStreet/Arts & Cultural District

• Redevelopment targets infrastructure

• Rehabilitation of physical assets

• Revitalization of the local economy

80.0%

90.0%

100.0%

NMMS Economic Impact StudyResult of Capital Outlay Funding 

10 0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

0.0%

10.0%

Increased rents Buildings sold

More pedestrian traffic Business expansions

Reduced vacancy More event attendance

Individual building improvements New businesses opening

Enhancing Public Infrastructure ‐ Challenges

• Sewer and Sewage Systems

• Water Supply Lines

• Electric/Power Infrastructure

• Roads, Pavement, Sidewalks

• Water Retention/Flooding

• Funding and Capital Outlay

• Partners Stakeholders• Partners, Stakeholders

• Public Input

Need for Construction Ready Public Infrastructure

• City of Raton, $2M investment for multi-modal Center, waterlines, street resurfacing, curb and gutter replacementcurb and gutter replacement

• NMMS Capital Outlay Supports: architectural/engineering planning documents

• NM MainStreet Technical Assistance to support private pp preinvestment

Raton Great Blocks ‐ Current Streetscape

Raton Great Blocks – Historic First St. Conceptual Design

• Phase 1 - Planning and Construction Ready Documents

• Phase 2 – Public Infrastructure: Streets, Sidewalks Lighting, Wayfinding

• Phase 3 – Private Reinvestment: Building Rehabs, Business Development

NM MainStreet Technical Assistance

• Capacity-Building – 4 Areas:Communications StrategiesTaskforce DevelopmentSkills DevelopmentSkills DevelopmentResource Development

• Commercial Property Restoration: 8-10 buildings, incentive grants/loans, façade improvements, historic building registry/tax credits

• Economic Development: Business training, marketing, business expansion planning, financing, and business recruitment

Catalytic Impacts

Catalytic Impacts – Plans and Projections

• 3 interior/exterior building improvement projects, 7 new business in 5 rehabilitated buildings, 3 additional building enhancements

• 4 business expansions (existing businesses)• 30 new jobs, $6.5M increase in sales (projected)

Asset‐Based Economic DevelopmentWhat Can You Do?

• Partner on revitalization projects

• C l / d l l d• Complete/adopt master, cultural and comp. plans

• Identify ICIP projects that support asset-based economic efforts, including small, mixed-use development projects

• Capital Outlay funding/management

• Encourage access to tax creditsg

• Examine local ordinances/policies

• Design codes

• Zoning Ordinances

• Reinvestment incentives

F M I f tiFor More InformationNew Mexico MainStreet Program

Economic Development DepartmentJoseph M. Montoya Building1100 South St. Francis Drive

Santa Fe, NM 87501Rich.Williams@State.NM.USwww.nmmainstreet.org