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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