HOW TO RECRUIT BUSINESSES THAT COMPLEMENT YOUR CULTURAL ARTS DISTRICT
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1 HOW TO RECRUIT BUSINESSES THAT COMPLEMENT YOUR CULTURAL ARTS DISTRICT
2
3 ECONOMIC BENEFITS Captures more tourism $ Sales and property tax revenue Reuse of buildings Employ local residents. Connects residents to community and attracts creative class. Changes image
4 BENEFITS FROM DISTRICT Florida: 30,000 businesses $50 M in revenue 6% of all businesses Pinellas County 2,500 businesses 14,000 jobs
5 TYPES OF DISTRICTS INSTITUTIONAL Museums Theaters Parks NOCD Artists Events Smaller spaces
6 TYPES OF DISTRICTS ENTERTAINMENT Music Movie Theaters Specialty dining Food INDUSTRIAL Film and Music Entrepreneurial Design IT
7 COMMON PROBLEMS Not every town can support an arts district. Top down approach not based on local identity. Insufficient funding Inadequate infrastructure Not inclusive Districts are constantly evolving.
8 COMMON PROBLEMS Pioneer stage- low rent, vacancy, crime, edgy Incubator stage Investment, destination restaurants, residential Vibrant stage - Recognition, safe, investment momentum Transitional stage image change, loss of anchors, gentrification
9 BUSINESS RECRUITMENT COMMON PROBLEMS Traditional market studies can t determine demand for art or cultural uses. Visitor sales are difficult to quantify. Insufficient critical mass or anchor tenants. Available space does not match demand or clients needs.
10 COMMON PROBLEMS Perception of business district Lack of ready to move-in space Space is too large or too small Unmotivated or passive landlords Lack of commercial realtors Commissions Lack of qualified prospects Unrealistic prices Surrounding tenants
11 BUSINESS RECRUITMENT PROGRAM Getting Started 1. Identify market opportunities. 2. Evaluate strengths and weaknesses. 3. Improve physical infrastructure. 4. Develop financial Incentives. 5. Establish a business retention program.
12 UNDERSTANDING THE MARKET Residents Regional patrons Visitors
13 CULTURAL ARTS MARKET Trade Area Demographic Profile Sales Leakage
14 TRADE AREA CULTURAL ARTS MARKET Visitor Bureau Intercept survey Focus group Lodging data Special events data
15 DEMOGRAPHIC PROFILE Age Income Education Lifestyle
16 DEMOGRAPHIC PROFILE Gen Y- 70 M (10-29) Boomers 76 M ( 55-69) Ethnically and racially diverse households
17 LIFESTYLES Hobbies Leisure activities Attitudes and politics
18 LIFESTYLES Sophisticated Visitor Latte and Laptops Dorms to Diploma Urban Pioneers Museum Mavens Affluent Homeowners
19 SUPPLEMENTAL DATA ESRI and Claritas Segmentation reports Survey of Public Participation in the Arts NEA Surveys
20 SALES LEAKAGE ANALYSIS Actual vs. Potential Sales. Shows whether residents retail needs are being met. Identifies strengths and weaknesses and opportunities for new retail. Does not measure demand for non-retail.
21 DEMAND FOR NON-RETAIL Housing Office Arts and Craft Educational Recreational Entertainment
22 BUSINESS ASSESSMENT
23 Vacancies and deferred maintenance Obsolete selling space Underutilized upper floors Unrealistic sale or rent Skewed retail mix Underperforming retailers Parking COMMON PROBLEMS Property owner motivation
24 PHYSICAL ASSESSMENT Buildings Redevelopment sites Streetscape
25 REDEVELOPMENT SITES
26 STREETSCAPE
27 BUSINESS MIX Types of uses Location Viability
28 TYPES OF USES
29 LOCATION OF USES
30 LOCATION OF USES BUSINESS MIX
31 BUSINESS VIABILITY Business Visitations Business Surveys Business Roundtables Block Meetings Focus Groups Mystery Shopper First Impressions
32 BUSINESS VIABILITY CULTURAL ANCHORS Seats Price Audience Financial stability LODGING Rooms Price
33 STRONG BUSINESS RETENTION Financial incentives Image improvements Promotions and marketing Business skills PROGRAM
34 FINANCIAL INCENTIVES State grants Local tax-based grants and loans City fees reduction or waivers TIF and Tax abatement Regulatory Flexibility
35 FINANCIAL INCENTIVES GRANTS Acquisition/renovation Facades or Signs Upper-stories Marketing/ad campaign Relocation, Rent Energy LOANS Banks USDA Slow money, Conservation Fund Foundations
36 FINANCIAL INCENTIVES TECHNICAL ASSISTANCE: Demographic reports Resource guide Web site Mentors Energy Audits Design Assistance
37 FINANCIAL INCENTIVES COMMUNITY FUNDS BUSINESS COMPETITION POP-UP PROGRAM PRE-PAYS CROWDFUNDING
38 IMAGE IMPROVEMENTS
39 IMAGE IMPROVEMENTS
40 PROMOTIONS AND MARKETING
41 PROMOTIONS AND MARKETING
42 BUSINESS SKILLS Workshops and Training Financing Mentors Publicity
43 Vision and market position Key projects and desired niches Policies BUSINESS RECRUITMENT STRATEGY Procedures
44 VISION and MARKET POSITION To create a culturally diverse place that attracts a variety of audiences. Uses reflect values and lifestyles of patrons.
45 CULTURAL DISTRICT KEY PROJECTS AND TENANTS Catalyst projects Retailers Housing Incubator space
46 CATALYST PROJECTS Restaurants, Microbrews Specialty foods Housing Ed s and Med s
47 CATALYST PROJECTS Museum Art galleries Theater Music
48 DESIRED NICHE BUSINESSES Existing clusters Market study Surveys Consumer Trends Space constraints
49 DESIRED NICHE BUSINESSES
50 HOUSING Work-life Artist Target Market Lodging
51 INCUBATOR SPACE
52 INCUBATOR SPACE
53 INCUBATOR SPACE SHARED SPACE Master Lease Ad budget Consignment & leased floor area or departments Full-time employee
54 RECRUITMENT POLICIES Types of tenants Priority locations Committee responsibilities Property owner and Realtor Support Leasing guidelines
55 TYPES OF TENANTS Destination vs. Impulse Complementary vs Competitive Locally-owned, franchise, chain, start-up
56 PRIORITY LOCATIONS Site characteristics Property owner support Compatible to surrounding businesses
57 COMMITTEE RESPONSIBILITIES Market the District opportunities Market vacant properties Referrals and networking Contacting desired tenants Negotiations and Deal making
58 PROPERTY OWNER SUPPORT DISCUSSION POINTS Leasing or sales objective Desired tenants Planned improvements Realtor s Role Rent/incentives TYPE OF ASSISTANCE Information on rents and sales Marketing material Introductions to prospects Website listing Help tenants Financial assistance Timeframe for action
59 PROPERTY OWNER SUPPORT CARROTS $$$$ Public Recognition Technical or financial assistance Options STICKS Peer pressure Building codes Historic District Ordinances Eminent Domain CID Purchase
60 LEASING GUIDELINES
61 RECRUITMENT STRATEGY Marketing Identifying prospects Making the Pitch Closing the Deal Sign the lease
62 MARKETING CAMPAIGN PRODUCTS: Brochures Fact sheets Opportunity signs Web sites Tours Referral network
63 MARKETING PRODUCTS Why locate Downtown? Market opportunities Site opportunities Incentives Testimonials
64 MARKETING CAMPAIGN Downtown Graphics Network
65 Broker Tours Apartment Tours Virtual Tours TOURS
66 WEB SITE
67 FINDING PROSPECTS LOCAL BUSINESSES: Realtors Referrals Website Media Field work
68 FINDING PROSPECTS NEW BUSINESS Trade shows Schools Community Biz Competition Incubator
69 FINDING PROSPECTS CHAIN OR FRANCHISE Trade show (ICSC) Brokers Buxton, Retail Lease Trac
70 EVALUATING PROSPECTS In-store evaluation Financial report Ad budget Lease constraints Customer profile
71 CONTACTING PROSPECTS Realtor or property owner ER volunteers Direct mail Social media Invitation to Tour
72 CONTACTING PROSPECTS TALKING POINTS: Market demand=$$$ Site matches store criteria Downtown location: Financial incentives Special events Promotions
73 CONTACTING PROSPECTS Practice on businesses. Set up tours or open house events. Ask for a referral. Maintain contact through newsletter, s etc.
74 SIGNING THE LEASE Tenant upfit allowance Facade or sign Hours of operation Participation in downtown events Employee parking
75 Determine your own vision Establish high standards KEY TO SUCCESS Realistic work plan Business and property owner support Begin by focusing on what you have not what you are missing
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