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Archive for the ‘Economic Development’ Category

Is Your City Really Moving Toward Economic Development?

If I asked the question, “Does your city really want economic development?” you’d probably answer “yes.” It might even seem like a silly question. Doesn’t every city want to grow and develop their economy?

While most cities say they’d love to increase their revenue and develop their economy, in practice that doesn’t always seem to be the case. Cities often have trouble getting past the status quo. Here are three questions that can help you figure out why, and also help you start really moving toward economic development.

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Why Resist Change?

In some cases, cities face problems that certain groups find it more profitable to complain about than to fix. To quote Aaron M. Renn, a Senior Fellow at the Manhattan Institute, “economic struggle can be a cultural unifier in a community that people tacitly want to hold onto in order to preserve civic cohesion.”

Similarly, in The Economy of Cities, Jane Jacobs says, “Economic development, whenever and wherever it occurs, is profoundly subversive of the status quo.” When people are benefiting from the status quo, there will be groups that resist change even when that change could benefit the city as a whole.

What Happened?

There are a whole host of reasons a situation like this can develop. It often happens without anyone realizing what’s going on. In many cases, you’re just too close to the situation to realize why certain groups are resisting change.

Here’s just one example. If a city were to experience economic growth, there’s a good chance outside parties will become involved. One case of this is when cities enter a public-private partnership to finance retail development. But when you bring in outside players, the people currently in power can find some of their influence diluted. In this situation, keeping with the status quo seems like it would be in their best interests.

How Can You Get Past This?

Because resistance to economic development has so many nuances and is so hard for cities to recognize, bringing in an expert can be a big help. Consulting with an economic development expert is a great way for your city to get a fresh perspective on what could be blocking economic development. Contact Retail Attractions today to see how we can help.

If you liked this article, be sure to pick up a copy of my new book The Devil’s In the Details: Things that Challenge City Government and the Language of Development. It addresses glaring problems and issues that destroy foundational economic development efforts for cities. This book also provides guidelines for how to overcome those issues. Click here to order.

Where Do You Get Funding For Economic Development In Your City?

We all know economic development would be good for your city, but how are you going to pay for it? Finding the money to get started with growth and development is one of the biggest challenges many cities face.

Funding for economic development in your city can come from several different sources, and you might have access to more than one. Here are four funding sources that you should look into for financing development in your city.

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Public-Private Partnerships

Public-private partnerships are one of the newest, and most popular, ways to fund economic development in your city. These partnerships let your city (the “public” side) and a private or corporate group share both the risks and rewards of economic development. You can get a lot more information about how to create successful Public-Private partnerships on my blog, so click here to read those articles.

City Funding

Funding for economic development is usually part of a city’s budget. It’s normal to set aside part of the general fund for things like business surveys, site visits, marketing campaigns, and redevelopment efforts. The city can also supply indirect funding by offering incentives to groups looking to build in your city and encouraging public-private partnerships.

State Funding

Many states have programs to support economic development. It’s important for your city officials to familiarize themselves with what sort of funding and incentives are available in your state. In some cases, states supply funds directly to a city. The state can also incentivize businesses to choose locations within the state for their next expansion site.

Federal Funding

Federal programs to support local economic development are available through several agencies. These include the Economic Development Administration (EDA), the Small Business Administration (SBA), and the Department of Housing and Urban Development (HUD). They can offer funding directly to cities and also provide tax breaks for companies building in your city.

Finding The Money

Retail and economic development is always a challenge. And it’s especially daunting when you try to tackle it on your own. Retail Attractions is here to help. We offer consulting services that will assist with all stages of economic development, including locating initial funding. Click here to contact us today and get started.

If you liked this article, be sure to pick up a copy of my new book The Devil’s In the Details: Things that Challenge City Government and the Language of Development. It addresses glaring problems and issues that destroy foundational economic development efforts for cities. It also provides guidelines for how to overcome those issues. You can order this book by clicking here.

Risks and Rewards in Public/Private Partnerships

Every financial venture carries a certain amount of risk. In a public/private partnership for economic development, both sides face some pretty significant risks but the partnership also offers greater rewards than either could reap on their own. To minimize risk and maximize reward, you have to set up the partnership carefully in the beginning stages of planning.

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Consider Both Sides

A public/private partnership is more than a straightforward financial deal. Such partnerships are complex, often long-lasting, and carry a high level of risk as well as the promise of significant rewards. When navigating a public/private partnership, both parties have to focus on mutual success.

The public partner can’t just focus on their community’s needs and the private partner can’t just focus on their bottom line. Both have to recognize and acknowledge the needs each party brings to the table, as well as the risks they’re taking on by entering the partnership. When both parties are committed to working together for their common good, they can accomplish goals that wouldn’t be possible apart.

Acknowledge Risks

To deal with conflicts and plan for an uncertain future, both parties need to know what the risks look like. On the public side, one risk is that the partnership will result in conflicts of interest and stir up dissension in the community. The public side may have to deal with land use conflicts, liability impacts, and accusations about the misuse of public funds. They’re also taking a risk that the developer could go out of business or not follow through on their side of the partnership.

On the private side, the largest risks are financial. Development is a time-consuming process, and there’s a risk of running out of funds before the project finishes if there are delays or poor planning. The public partner is also gambling that the project will create long-term value. Another risk is that key changes in public or political leaders could derail the partnership. These sort of risks should be addressed in the planning stages of partnerships.

Reap The Rewards

If you can make a plan to deal with and/or avoid the risks, public/private partnerships result in plentiful rewards on both sides. For the public side of the partnership, success results in greater wealth in the community, improved infrastructure, increased tax revenue, and creation of jobs. For the private side, successful retail development partnerships are financially profitable, establish their market niche, enhance the organization’s reputation, and provide resources to take on new projects.

Every partnership is unique and a one-size-fits-all formula doesn’t apply. When you’re trying to manage risks and work towards mutual success, it helps to have someone on your side who has experience working with public/private partnerships and fostering economic development. Retail Attractions has extensive experience on economic development projects and understands the perspective of communities and developers alike. We tailor our consultation to your unique situation and we’ll work with both public and private parties to get the most out of your partnership.

Preparing for Public/Private Partnerships

Using public/private partnerships for urban economic development is a growing trend in the United States. In many cases, partnering with the private sector is required for cities to pay the cost of building public infrastructure, especially when that infrastructure is essential to a retail deal. If your community is looking to set-up a public/private partnership to fund new growth, there are a few key steps to take before you even start talking with potential investors.
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Early Vision

Start involving your community and resolve conflicts within local government before making contact with developers and investors. Having a comprehensive plan for development that everyone can agree on makes a public/private partnership easier to create and maintain.

If you know what your community wants to get out of the partnership and what you can offer, it saves time in negotiation and lets private investors know you’re serious about investing effort into the partnership. Retail Attractions can help with this type of strategic planning by reviewing your work and conducting visioning workshops with the city.

Ready For Development

Have the land ready and legislation in place for retail development before seeking private partners. Investors don’t want to start negotiations with your community only to find that they don’t yet have access to the land you intend to develop. Developers are more likely to invest in a community that makes things as easy as possible for them. With that in mind, try to streamline building codes and regulations as much as possible before investors arrive.

Identify Goals and Resources

Investors will want to see your community’s vision for the partnership presented clearly in verbal, written and graphic form so they can see what you have in mind and how prepared you are to get the project underway. Share your goals with potential investors and let them know what resources are at their disposal.

You’ll also need to consider what kind of incentives you can offer potential investors. Most retail growth happening in a local setting involves some type of incentive so it’s not something you can afford to overlook.

Evaluate Funds

As a community, you need to know where the funds are going to come from to hold up the public half of a public/private partnership. Public/private partnerships should result in revenue that your community can’t create on its own, but in the initial stages imagination and forward-thinking will have to come into play as you try to come up with needed funds. Explore both public and nonprofit sector funding sources such as development grants, transportation funds, local revolving loans, and tax increment financing tools.

Expert Negotiation

It’s easiest to work with potential investors if your city creates, or already has, an entity to handle the partnership, such as a redevelopment authority or quasi-governmental agency. What’s most important is that the public party contacting investors has the skills and experience necessary to handle the negotiation.

This is a key area where Retail Attractions can help in the initial planning. While your community might not have much experience negotiating public/private partnerships, we can fill that void. Retail Attractions has extensive experience working with communities to create public/private partnerships that benefit both the public and private sides of the partnership. Contact us today to get started.

Three Ways to Market Your Community

Marketing plays a crucial role if you’re planning for economic growth in your city. And I’m not just talking about attracting new businesses though that is an essential step. If your community is going to remain successful, you also have to continue marketing yourself to and maintaining relationships with existing business partners. You’ll also want to encourage a steady stream of visitors to your community so they can patronize local restaurants, shopping areas, and other businesses.

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To New Businesses

The first step in attracting new businesses to your community is knowing what you have to offer. You’ll need to analyze your community and come up with strategies for effective marketing. Retail Attractions is your best asset in this process. We’ll work with you to take stock of obstacles and assets about your current situation, find funding, compile reliable and useful demographics, and manage marketing efforts.

You’ll also want to tap-in to resources on the state-wide level. Most states have a department to oversee and encourage economic development. Experts recommend having a liaison between your city and these allies who is skilled in marketing the community to new businesses. Retail Attractions can help with this as well, and we’ll also be there to advise and assist the city once you’ve found an interested developer.

To Existing Businesses

Businesses that are already in your community are the easiest to reach. They’re already very familiar with your town and know what to expect from you if they decide to expand. You also have an existing relationship with retail developers who’ve built in your city before. If they had a good experience, they might choose to work with you again.

One of the best ways to encourage new economic growth from existing business relationships is to get off on the right foot. Retail Attractions has extensive experience working with businesses and developers and knows what they’re expecting from a community. We can help you anticipate their needs and promote a smooth relationship that’s headache-free for all parties. Always remember to address any of your business partners’ concerns promptly and in a way that shows them how much you value the relationship.

To Visitors

Businesses are more likely to invest in a location where there’s a steady stream of customers. Making your community more attractive to visitors and encouraging new people to move into the community has the added bonus of attracting new business.

Word-of-mouth marketing is the most successful, yet it’s also hard to pin-down. You can’t force people to tell their friends what an amazing time they had shopping at your new mall, eating in a restaurant, or touring the community. What you can do is plan carefully to market your community’s unique brand and partner with other local, regional, and state tourist organizations. When your visitors are happy they’ll visit again themselves, and they’re also likely to tell a friend and market your community for free.

Why Choose Retail Attractions?

When you’re researching Retail Attractions, you’ll find quite a few articles and testimonies talking about Rickey Hayes’ work in Owasso, Oklahoma. You might wonder what’s so special about Owasso and why Rickey’s work there makes him qualified to help your city attract new retail, or to advise your development firm in finding the best locations for investment.

Economic Development Expert

Business Testimonials

Before he founded Retail Attractions, Rickey served as Owasso’s Economic Development Director for six years. Robin O’Grady, a Retail Specialist with NAI Sullivan Group, says that the retail development brought to Owasso “is in itself a testimony for Rickey’s hard work, knowledge, and experience in the business. Rickey not only understands the economics of the project, but he also understands the needs and concerns of the developers and retailers.” For retailers building in Owasso, the project was a success monetarily and in terms of how easy it was to work with the city.

It wasn’t just large retailers that benefited from Rickey’s involvement. Small business owners like Angela Ritchie say, “I have watched him work to create an environment that will allow large corporate chains, as well as small businesses to flourish in Owasso.” When Rickey Hayes and Retail Attractions work in a community, everyone benefits.

City Perspective

Owasso serves as a case study for retail success made possible when working with Retail Attractions. Part of the reason for Owasso’s success had to do with the city’s location and surging residential growth. But even with these advantages, the city probably wouldn’t have attracted such successful retail development without Rickey’s knowledge and planning strategies. During his tenure, Owasso experienced tremendous commercial and residential growth that more than tripled the city’s sales tax revenue.

The economic growth in Owasso had far-reaching benefits for residents. For example, Superintendent of Owasso Public Schools Dr. Clark Oglivie says, “Rickey’s role as the City of Owasso’s Economic Development Director was of paramount importance to the school district.” As a direct result of the new revenues from increased city growth, the Owasso Independent School District was able to build over $100 million in new facilities without a single tax raise.

What About You?

If your community is looking to encourage economic and residential growth, you’re in the right place. Rickey has years of training and experience, having worked directly or indirectly in over 300 cities in 35 different states. We’re eager to talk with your city and learn exactly how we can help you. You can find out more about our economic development services here on our website, or click here to contact us.

If you’re a retail development group interested in working with a company that has extensive experience connecting developers with good retail locations, we can help. Rickey has been involved in the completion of millions of square feet of retail, residential, medical, office and other commercial real estate, and your development can be the next one he facilitates. Click here to learn more about available properties in our client communities.

Five Characteristics of High Growth Communities

Achieving population and revenue growth are key goals of city planners, and cities that succeed in both typically share common traits. While some communities are situated in locations where growth occurs more easily, it typically requires hard work to build a sound foundation that will encourage population growth and new retail development.

Here at Retail Attractions, we believe smart, successful retail development is a vital part of a community’s growth. We’re ready to help your community through the entire growth process, from evaluating your community assets, to creating a strategic plan, to bringing in developers and maintaining good relationships with them.

Retail Site Selection Strategy

Good Location

An essential trait of growing cities is having a strategic location. Communities are more likely to develop if they have convenient highway access and the ability to funnel traffic in from a larger regional area. Housing availability, excellent educational facilities, and medical facilities also contribute to drawing new businesses and residents in. You’ll also need available, developable property to attract retailers.

Growth-Ready Infrastructure

One of the easiest growth foundations to overlook is infrastructure, but if you’re planning for city growth, it’s one of the most important areas to consider. Retail Attractions has experience with general municipal consulting on local and regional levels, and we can help your city design a plan for healthy infrastructure. We’ll work with you on water and sewer plans, transportation and traffic flow, technology, zoning, parking and other critical areas of infrastructure that should be in place prior to city growth.

Residential Growth

Population and retail growth go hand-in-hand. The more retail and housing development that takes place, the more new residents will be attracted to your community. And if your community is attracting young, upwardly mobile residents with stable incomes, then you’ll have more retailers who want to build in your area. Retailers are also more likely to invest in communities that are home to a high percentage of families and homeowners.

Marketing Philosophy

Even with a good location, solid plans for expanding infrastructure and residential growth, your community won’t attract new investors without a mindset for growth. Your community must be ready to offer incentives to new residents and interested developers, and come up with a solid marketing strategy. Set yourself apart from the competition with a user-friendly city website, professional marketing with accurate information, and by offering a variety of incentives.

Strategic Plan

Retail Attractions is ready to sit down with your city and stakeholders to assess community strengths and weaknesses and develop a strategic growth plan. This will outline action steps for the community, list stakeholder responsibilities, and include target completion dates for future projects and tasks. Our job doesn’t end there, though. Retail Attractions will stick by your community as you build relationships with retailer developers. To maintain city growth and prepare for new growth phases, it’s important to continue supporting and marketing your retailers.

Ready to develop a plan to make your city a hot spot for growth and development? Contact us today.

Links Between Retail Growth and Economic Development

Discussions of economic development often ignore or downplay the contributions of retail growth. Usually, when someone is talking about economic development, they’re focused on urban revitalization, creating new jobs, industry and manufacturing. But those aren’t the only factors important to economic development on a city-wide level. Retail growth also plays a key role.

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A Few Economic Development Examples

From 2002 to 2007 Retail Attractions’ founder Rickey Hayes saw the City of Owasso, Oklahoma experience tremendous commercial and residential growth. Census data shows Owasso’s population grew 55% from 2000 to 2010, and in that time, the city’s sales tax base and general fund revenue nearly tripled. During this period, new commercial construction totaled more than 4.2 million square feet and over a quarter of a billion dollars in total value. This growth made it possible for the Owasso Independent School District to build over $100 million in new facilities, and all this was done without a single tax raise.

The connection between growth and increasing retail in a town isn’t just a recent or anomalous development. Carleton Meyers reported in an issue of Economic Development Review from 1995 that Boaz and Foley, Alabama and Stroud, Oklahoma, all saw sales tax revenues jump 200% in the first year after a Tanger outlet mall opened in the town. Retail growth is tied to economic growth.

Planned Retail Growth

What do Owasso and the cities that welcomed new Tanger outlets all have in common? Well-planned retail growth. It’s a simple fact that when national retail comes to a community, the quality of life improves, and more people want to live in that city. If you’re moving to a new location and have to choose between several different communities, wouldn’t you rather move into the city that offers quality goods and services from retailers you already trust?

Retail Attractions guides communities in defining their potential in the retail marketplace and then teaches them how to market themselves to national retailers and restaurants. It’s a slow process, but one that pays off in the end. Our clients that stick with us will see new retail, new revenue, and new growth in their cities, just like Owasso did.

Key Growth Areas

You might think that with the growing trend in online shopping, retail development would be slowing down in cities. This simply isn’t the case. The market for groceries and fresh foods, for example, remains largely unaffected. Many people also still enjoy shopping in a physical location where they can try on clothes and see the products they’re shopping for first-hand. Specialty stores, excellent restaurants, and outlet malls are always in demand, and we’re still seeing national retailers wanting to develop in new locations. With Retail Attractions’ help, your city can be their next investment.

We don’t just focus on big retailers, either. Building new community centers of retail also benefit small businesses. One of our clients is Angela Ritchie, owner of Creative Insurance, and she says of Rickey, “I have watched him work to create an environment that will allow large corporate chains, as well as small businesses to flourish in Owasso, OK.” When you work with Retail Attractions, you’ll not only bring national retailers into your community but also provide opportunities for local small business owners.

Interested in encouraging retail growth and economic development in your city? Contact us today to request more information or schedule a consultation.

Economic Development and Social Media

Social media can be a powerful tool when you’re focusing on promoting economic development in your community. A quality social media presence attracts attention from people within the community and potential outside investors.

On the other hand, poorly managed social media can sabotage lucrative retail recruitment deals. If you’re going to use social media in your economic development efforts, make sure it’s a properly managed campaign. Using Retail Attractions streamlines your economic development efforts, and ensures your social media campaign is a help rather than a hindrance.

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Accurate

Making sure the information you share is accurate plays a critical role in encouraging economic development. If your community’s social media isn’t managed well and frequently circulates half-truths and rumors, it makes it hard for investors to trust your community.

Restricting who’s able to post is one of the best ways to ensure accurate information is shared. The city leaders who are best informed on matters of economic development should be in charge of what gets posted in the marketing campaigns. Retail Attractions can advise on training a social media team about what to post, and how to manage mistruths that others in the community might circulate by accident.

Interesting

Accuracy isn’t the only thing that counts on social media. Your community’s posts also have to catch readers’ eyes if you want them to trend well. One of the best ways to do this is incorporating video and pictures. An image will catch someone’s eye when they’re scrolling through social media a lot easier than a post that’s just text. People are also more likely to share a post that contains images or video.

You can drive more traffic to your posts by using hashtags. This is especially important on Twitter, but they’re also supported by other social media platforms like Facebook. Hashtags let you reach people who are monitoring specific keywords. When someone clicks on the hashtags #econdev (Economic Development) or #CRE (Corporate/Commercial Real Estate), you want them to find posts from your community.

Relevant

Once you’re reaching your target audience, make sure you’re posting things that will encourage them to engage with your community. Show that you’re supporting local entrepreneurs. Share pictures of sites and properties that are available for economic development. Announce positive news in your community. Post interesting demographic information, including data provided by Retail Attractions.

While you’re posting all this information, try to tell a story. Narrative catches your audience’s attention more surely than dry facts. People like to hear success stories, watch video interviews with local entrepreneurs, and read the story of why a company chose to build in your community. On platforms like Twitter where the amount you can write is limited, use social media to share blog posts and videos.

Building Interest in Retail Development – Closing The Deal (Part 2)

You know your city demographics, you’ve shown there’s a demand in your community for what retailers can offer, and you’ve started building relationships with investors and business leaders. Now that retailers are interested in developing your city (see Part One), it’s time to focus on closing the deal.

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Build on Relationships

Preexisting relations and familiarity with involved parties is very helpful during the negotiation process. If you and your community don’t have those connections yet, don’t worry. Retail Attractions’ founder Rickey Hayes has a strong network of contacts, and when you hire our company he’ll introduce your city officials to investors, builders and business leaders, and also  help with negotiations.

Since investors already have a relationships with Retail Attractions, negotiations will start out with an established level of trust that helps speed up the negotiation process. Not only that, but your community’s relationship with Retail Attractions will also help smooth over or prevent challenges and misunderstandings during the construction and regulation process.

Effective Negotiations

All too often, communities that are inexperienced dealing with investors and developers start off on the wrong foot when negotiating. If you offer too little at first, it can put-off investors and make them take their business somewhere else. But if you offer too much, it hurts your community. You need to find a middle ground that gets everyone talking, which can be hard if you’ve never worked with major developers before.

One of the advantages of hiring Retail Attractions is that your community gains access to a development professional who will advise on negotiations. We know how to get negotiations off to an effective start, and what type of incentives to negotiate for. This helps ensure you don’t scare-off potential investors with demands they think are unreasonable, or hurt your community by signing too much away.

Demonstrate Knowledge

Like you, retailers want their relationship with your city to go smoothly and be profitable for both parties. You can help convince them that their development project in your city will finish on time and within budget by demonstrating experience and knowledge working with building codes, EPA regulations, and other factors that contribute to a development project’s cost in time and money.

Once again, Retail Attractions offers services that are key in showing your community understands retail developers’ needs. We know what factors retailers are looking at, and we’ll provide you with Demographic Data and Market Analysis that you can share with interested companies, as well as advise your community on factors that will affect development planning. Our goal is fostering good relationships that will benefit your community now, and in the long-term as you continue to work with future investors.