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Lure Businesses To Your Downtown -
By Making Life Easier For Them

By DOLORES P. PALMA & DOYLE G. HYETT

Most communities today would welcome business prospects who are interested in "setting up shop" in their downtown. So much so, that many communities have put into place aggressive, pro-active business attraction programs. Business owners who are being courted, however, often have a variety of locations to choose from besides downtown. These might include locating along a commercial "strip," along a highway, in a shopping center, or even in the next town, township or county.

So, how can communities successfully lure business prospects to downtown locations? Many community leaders have learned that attracting small, independent business owners can be accomplished by making life easy for them - and that financial incentives from the local government are not necessarily what business prospects want or need. In fact, many communities have found that strong, successful, well-capitalized, independent business owners - the kind most are trying to attract - are more interested in a location where they can get their business opened quickly and make money, rather than in financial hand-outs.

The communities highlighted below are operating comprehensive downtown business attraction programs. As part of these programs, they are removing obstacles, cutting "red tape," providing business information and helping business prospects open their doors to the buying public as quickly as possible. This, they have found, is an equation that equals success.

Morris, IL - Market Analysis

A realistic market analysis is an economic tool that developers of shopping malls, retail centers, outlet malls, etc., would not do business without. Today, community leaders find that having this tool for downtown - a downtown market analysis - enables them to sell good businesses on a downtown location. The reason for this is simple: the downtown market analysis shows how much money can potentially be made by businesses operating in downtown. Business owners are more likely to consider a location if they can be shown that its market potentials are strong.

Understanding this, the Morris Downtown Development Partnership undertook a market analysis for its downtown. The market analysis allowed the Partnership to take a bottom-line and business-like approach to downtown's enhancement. The market analysis did this by defining and quantifying:
• Current customers;
• Potential customers;
• The types of businesses these customers and potential customers want today;
• What types of businesses they will want tomorrow;
• Which of those businesses could flourish in Downtown Morris; and
• How the Partnership should go about attracting those businesses to downtown locations.

This gave the Partnership the information necessary to target those specific business types most appropriate, contact owners of those businesses, and lure them to downtown with solid economic data.

Miamisburg, OH - One-Stop-Shop and Vendors

Community leaders have found that, for downtown to be a business prospect's investment location of choice, the local government must be pro-business. This means revising regulations that make it hard to open a business in downtown. And, being pro-business also means streamlining government processes (codes planning reviews, permitting, etc.) so that business owners can go into business as quickly as possible.

While being pro-business is essential to a downtown success, it must go hand-in-hand with being pro-quality. This means that local government should not and must not be pressured to forego quality in order to attract investors. Instead, City Hall and the down-

About the Authors
Dolores P. Palma and Doyle G. Hyett are the founders of Hyett Palma, Inc., the only national consulting firm specializing in the economic renaissance of older business districts. Based in Alexandria, VA, the firm has served hundreds of business districts from throughout all 50 states. The firm's work has been featured in many publications, including The New York Times, American City & County Magazine, Public Management Magazine, and the magazines of numerous state municipal leagues.

November 1996 / Illinois Municipal Review / Page 17


town business community must jointly convey the clear message that downtown welcomes quality business owners - those who will operate quality businesses and reinvest in their business; and that the local government is ready and able to be aggressively pro-business for such investors.

Miamisburg, Ohio, has furthered its downtown's enhancement by creating a "one-stop-shop" in City Hall. This involves having the City's employees who deal with planning, development, building codes and fire codes work together as a team. The City's "one-stop-shop team" means a business owner, property owner, or real estate investor need only go to one location in order to obtain all required City permits and approvals. This pro-business stand has sent a clear message that Miamisburg welcomes quality investors with open arms. And best of all, it has caused Miamisburg to be named the most business-friendly city in the entire Metro-Dayton region.

As part of Miamisburg's overall downtown enhancement strategy, City officials have also decided to allow a small number of vendors to locate downtown. The vendor initiative stipulates specifically where vendors can locate and gives serious consideration to the type of products that will be sold by each applicant. This is a form of business recruitment that can be used to help prospects test the market and determine whether or not an in-building downtown location is right for them.

Traverse City, MI - Customer-Friendly Parking

When considering a location, business prospects often want to be assured that convenient parking will be available for their customers and clients. Many communities find that while they may have enough parking spaces, the public still perceives downtown parking to be difficult to find. To address this issue, the Traverse City Downtown Development Authority (DDA) - the City's marketing and development agency for downtown - has made several major improvements that have made downtown parking convenient and accessible for the buying public. These include the following:
New signs - all having the same logo and coordinated colors - have been installed to better identify parking areas and to direct motorists to those parking areas.
• A welcome packet is given by the DDA to all new downtown business owners and includes a description of the parking permits which are available to downtown employees, an illustration of where employee permit parking areas are located and an explanation of why employees parking in front of a business is bad for business.

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New signs help the DDA assure business prospects that
Traverse City's downtown parking is customer-friendly.
• The DDA started a monthly parking award program in which one employee permit holder is randomly selected each month. The selected employee receives gift certificates from downtown businesses, is recognized in the DDA's newsletter, and is featured in a local newspaper ad that includes his or her photo.
• Downtown employees now obtain their permits at the DDA's office, instead of the City Treasurer's office. The DDA staff's offering of personalized and convenient service - such as calling permit holders who leave their vehicles' lights on - has caused the number of permits purchased to jump from 600 to over 800.

These changes have resulted in a more cost-effective parking system as well as an attitudinal change - downtown business people and employees look at parking differently now, since they view the DDA as a concerned partner. And, business prospects can be assured that parking is being managed in a way that is pro-customer and user-friendly. •

Page 18 / Illinois Municipal Review / November 1996


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