THE TOWNSHIP OF HAVERFORD. Economic Development Review and Program Recommendations. Graham Copeland
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1 THE TOWNSHIP OF HAVERFORD Economic Development Review and Program Recommendations Graham Copeland October 20, 2015
2 Haverford Township s Board of Commissioners took important steps in forming an Economic Development Committee and creating a new economic development initiative. Clearly Haverford Township is moving in the right direction, based on a number of recent and ongoing Township initiatives, and further supported by improving economic conditions positively impacting the Philadelphia region and beyond. By committing to a planned, strategic effort, Haverford Township has an opportunity to accelerate this improvement to economic conditions, in partnership with the local business community. This report presents a summary of initial findings of the economic and related physical conditions currently existing in Haverford Township. The report also recommends a number of possible program and policy options intended to provide Haverford Township with effective and expedient approaches to further improve these local conditions. Why Should a Municipality Conduct Economic Development? According to numerous residents and businesses contacted in Haverford Township, a leading local economic factor is the perceived heavy burden of property taxes. Clearly, growing the tax base derived from increasing the number of businesses and commercial properties will increase its percentage of the overall budgets (municipal, school district and county), which will ease the tax burden for residents and distribute the fiscal obligations more broadly. 1
3 The Township s 2014 total revenues from real estate taxes on commercially-zoned properties, plus all business taxes amounts to $4.564 million. This represents 11% of all Haverford Township revenues. The economic development opportunity is to increase this percentage. Municipalities that proactively manage their unique circumstances to maximize their revenues from commercial properties and business taxes are best able to provide the high levels of public services and educational opportunities that their constituents expect, while mitigating future tax increases. The economic case is made in these municipalities for ongoing investment in programs and community improvements that systematically increase their commercial ratables. This initiative s goal is to increase the number of businesses, their headcounts and revenues, not by raising the tax rate on businesses - while improving the quality of life for local residents and businesspeople alike. Return on Investment calculation are routinely made by downtown revitalization program participants to track and report results. Across Pennsylvania, Main Street community programs report an average return of $13 for every $1 of public funds invested (source: PA Downtown Center). Nationwide, the ROI average is a $33 return for every $1 of public funds invested (source: National Main Street Center). It is recommended that data gathering be incorporated into any new economic development programming In Haverford Township, to develop baseline measurements for ROI analyses and program evaluation going forward. Economic Development Program Objectives The general objective stated in Haverford Township s Request for Proposals is: to establish an effective community economic development program and establish positive relationships with community leaders and identify opportunities with shared vision and goals for Community, Businesses and Industries. The RFP further stated these goals: Retain jobs Recruit new businesses Assist businesses to help them grow and be successful Provide technical assistance and support to businesses Identify potential business property redevelopment areas 2
4 Develop/analyze business community data Develop market statistics and demographics Strengthen relationship with the Haverford Partnership for Economic Development Work with Haverford Township staff, Delaware County EDOB, and local community organizations. Provide reports and presentations to Township Manager and Board of Commissioners. Recommended Strategy Given the startup aspect of this new Township initiative, a strategy is recommended to develop programming that is incremental, smaller-scale and geographically-distributed. This is intended to achieve quick wins - to gain public visibility and build momentum, by delivering on program objectives and communicating results to township stakeholders. Through longer term strategic planning, additional infrastructure and transportation improvements can also be pursued. These larger projects are more time and resource-intensive, which require grant writing, engineering studies and project management to implement. The Township s comprehensive plan was last updated in its entirety in 1988, and a new update to the comp plan should address these capital improvement projects. It is also recommended that strategic partnerships be developed whenever appropriate, to leverage limited resources, take advantage of respective organizational synergies, and to qualify for certain types of grant funding for which a municipality may not otherwise be eligible. Research To gain an understanding of Haverford Township s local economic conditions, the consulting process included the following fact-finding activities: Literature review of all community planning studies since 2006 Interviews with all Commissioners and key Township staff Surveys of Commissioners to gauge economic development priorities Introductory meetings with over 50 business owners, managers and landlords Meetings with Pennoni Associates, Delaware County Commerce Dept., Delaware Valley Regional Planning Commission, Haverford Rotary, Haverford Partnership for Economic Development and Haverford Civic Council Physical inspection and photography of Haverford Township s commercial districts in their entirety; and Analysis of US Census statistics review of Haverford Township-specific business data 3
5 A summary of the Commissioners survey of priorities is included in the addendum. Additionally an online survey of 897 businesses with Haverford Township addresses currently is being conducted. A link to the survey was mailed with invitations to the business outreach meeting. The results will provide additional input, and the needed contact information to form the beginnings of a business inventory and database. Note: some of the analysis requested in the Township s RFP requires local market data that has not previously been gathered, e.g. - # of businesses, jobs and commercial property vacancy rates. The data gathered from the business survey, supplemented by direct outreach, is feeding a new database which can be used to conduct communications, metrics and future evaluation. Since 2006, a series of planning studies were conducted, focused primarily on revitalization of the Township s commercial corridors, including the following reports: 4
6 For this analysis, these reports were reviewed and summarized, with a focus on evaluating the various recommendations for implementation. Moving in the Right Direction To date, a number of earlier initiatives have taken place to lay the groundwork for economic development activity in Haverford Township. Notably, since the 2006 Assessment Report by the Citizens Task Force for Commercial Revitalization, a number of the early recommendations have been implemented, or are in process. Visible examples of progress are seen in the Township s ongoing streetscape improvement projects in various commercial corridors, including: the replacement of new sidewalks and curbing, installation of new pedestrian street lighting and Haverford Township-logo banners along main roadways, renovation and expansion of municipal parking lots, and the extensive landscaping of public median strips and parks. In addition, significant private sector investment has also occurred, in the development of new residential, commercial and institutional projects. This recent investment includes construction 5
7 of The Reserve and the Haverford Area YMCA; commercial building façade renovations in Oakmont Village and other districts, and the opening of numerous restaurants throughout Haverford Township. The following is a discussion of various economic factors currently impacting Haverford Township, and ten associated recommendations for municipal programs to consider, which can be implemented immediately. Proximity to Philadelphia Haverford Township enjoys an advantageous location for residents who commute to work downtown or seek the services and amenities of a major city nearby. This convenience serves as a key element of the Township s intrinsic economic value as a desirable location for residents and businesses alike. Diversity of land uses, density and socio-economics - Haverford Township is at the same time a first ring suburb, bordering West Philadelphia at its easternmost point, and a home to lower-density, higher-income neighborhoods which border the Main Line to the north and northwest. Demographic changes a dramatic shift has occurred Township-wide in the income and education levels between 2000 and 2013: Source: US Dept. of Commerce, Bureau of the Census This increase in the median household income of $28,787 represents a significant 43.8% rise over 13 years. Together with a 17% increase in the number of college-educated adults, this 6
8 suggests an influx of new residents. The presence of higher disposable incomes and the associated higher spending on local goods and services has a positive impact on the Township s economy. This market data is important to existing and prospective new businesses. An economic development program should leverage this and additional data on local expenditures, consumer profiles and real estate values to recruit new businesses to the Township, and develop programs to support and retain the existing businesses. Recommendation #1: Develop promotional materials highlighting this and other key statistics as components of a new business attraction and retention campaign. Changing Local Business Base A comparison of employment statistics by industry numbers of businesses and jobs within Haverford Township - over the two most recent US Census reports reflects a contraction in the local economy, with a notable exception. Number of Businesses Located in Haverford Township, by Industry Source: US Bureau of the Census, Economic Census of the US 2002,
9 Industry Manufacturing N/A 22 N/A N/A N/A 182 Wholesale trade N/A 56,606 N/A 169 Retail trade , ,418 N/A 1,138 Notes Reduction of 11 wholesale trade businesses (25%) Reduction of 29 establishments (24% ) 27% reduction in revenues; 2012: declines from first to 2nd largest sector in HT economy (sales volume); ranked 2nd largest sector by # of employees Information N/A N/A N/A 182 Reduction of 4 establishments (19%) Finance and insurance N/A 55 N/A N/A N/A 250 Real estate and rental and leasing Professional, scientific, and technical services Administrative support and waste management & remediation services ,935 40,742 N/A ,530 65,292 N/A 490 Reduction of 13 establishments (33%); however 13% increase in aggregate sales revenues. Reduction of 14 establishments (9%); 26% reduction in aggregate sales revenues. Ranked 3rd largest sector by sales revenues ,901 45,948 N/A % reduction in sales revenues Educational services N/A 21,026 N/A 164 Health care and social assistance Arts, entertainment, and recreation Accommodation and food services Other services (except public admin.) Number of Establishments Sales revenues ($1,000) Number of Employees , ,118 N/A 2,973 Addition of 4 new establishments; 36% increase Addition of 19 new establishments: 13% increase; 41% increase in sales revenues; largest sector in economy (sales revenues and # of employees) ,256 42,965 N/A 534 Addition of 3 new establishments (16%) N/A 34,655 N/A 652 Reduction of 8 establishments (11%) Ranked third largest sector by # of employees ,317 41,612 N/A 365 Reduction of 20 establishments (18%) Source: US Bureau of the Census, Economic Census of the US 2002, 2012 The graph and chart show that within Haverford Township, the retail sector, ranked #1 in aggregate sales revenue in 2002, declined significantly over the ten-year period in the number of retail establishments and overall revenues. However the healthcare/social assistance sector experienced growth over the same period - by 2012 ranking as the largest sector in the number of establishments, sales revenues and number of employees. Educational services, and arts, entertainment & recreation are growing nominally, representing relatively lower numbers of revenues and jobs overall. Five of the other sectors listed had declining numbers of business establishments over the ten-year period. (Note: this is not a comprehensive list of all business sectors, due to reporting gaps in local Census data) 8
10 Emerging restaurant scene Haverford Township has recently experienced an increase in the number of restaurants, offering an expanded selection of cuisines - likely due in part to the increased demand driven by the changing demographic. The opening of new eateries is significant to revitalization programs: they help build an enhanced sense of place in a community representing important amenities for residents and visitors, and their investments in the community create economic opportunities for entrepreneurs and their employees. Additionally, restaurants serve as anchors, generating foot traffic needed to support nearby retail businesses in their districts. 9
11 Commercial property vacancies despite this expansion of restaurants, a tour of Haverford Township s commercial corridors reveals a significant number of vacancies in commercial properties. The vacant properties types include retail, restaurant, office, automotive/garage and mixed-use; and the property ownership profiles range from national shopping center owners to local landlords with small real estate holdings. Recommendation #2: develop a business recruitment campaign based on market research, development of promotional materials and outreach to landlords, real estate brokers and business prospects. A proactive approach to recruiting new businesses, according to a plan, supports a more productive local economy and contributes to a desirable mix of businesses to benefit community members. 10
12 Decentralized commercial districts businesses are distributed throughout nine separate commercial areas around Haverford Township; some are more distinctly defined than others. Each has its own unique neighborhood character and is a source of pride to its residents. The local identities of these places can be further developed. Recommendation #3: conduct a brand identity development project that highlights each district as a unique place, but connected to Haverford Township with a common graphical theme. This project can tap into the local community pride and provide a reason for businesses to organize into district-based working groups. 11
13 Changing land use patterns a number of Haverford Township s commercial districts are characterized by former residential properties, converted into retail, service and industrial uses, along roadways which have since become main commercial corridors. In many of these properties, front yards have been paved over, landscaping is minimal and walkways can be unsafe for pedestrians. Examples of these residential-turned-commercial properties are found along W. Eagle Road, and along Darby Road, south of the Township of Haverford building. These smaller commercial properties serve an important function as affordable locations for numerous small businesses, including startups, and can offer a gateway to property ownership for entrepreneurs with growing ventures. However a number of these aging properties are under-maintained, obsolete and detract from the community s overall physical environment; some need significant reinvestment or replacement. Fully built-out? As an older, established community near to a major city, Haverford Township has very little, if any greenfield land available for commercial or residential development. At the same time, the inventory of existing residential and commercial properties consists largely of older building stock. 12
14 Expect to see continued infill development and redevelopment of existing properties. This trend is due to factors including the age and condition of existing properties, their underlying land values, and the traffic patterns, local population density and aforementioned changing demographics. Notable examples of this trend include recent construction of the Haverford YMCA at the former Swell Bubblegum factory, the Quarry Center and The Reserve at the former Haverford State Hospital. Infill construction of residential properties has been occurring in Llanerch and other neighborhoods - indications of Haverford Township s desirable neighborhoods and schools, the current strong market demand for housing throughout the region, and improving economic conditions overall. Recommendation #4 compile and maintain an ongoing inventory of commercial properties suitable for rehabilitation and/or redevelopment. This activity would be in coordination with Township staff, landlords and select real estate brokers. Traffic congestion and public safety regional development including the Blue Route interchange in the Township, and more recently the addition of the new YMCA have contributed to traffic congestion and related pedestrian safety concerns. Further economic 13
15 growth should be addressed holistically, considering key issues of quality of life and the longterm sustainability of healthy communities. Smart growth and new urbanist planning trends address these important issues, through progressive approaches to land use and development that focus on public transit and alternative transportation modes, mixed-use development and sustainable design. Recommendation #5: Engage a transportation planner to research the traffic congestion and pedestrian safety issues. A study focused on smart growth solutions could qualify for funding via Delaware Valley Regional Planning Commission s Transportation and Community Development Initiative (TCDI) grants. Auto-oriented commercial corridors many of Haverford Township s streetscapes are characterized by properties which have an overabundance of paved surfaces and curb cuts, and 14
16 inadequate or nonexistent sidewalks and landscaping. The result is commercial corridors that are unsafe for pedestrians, physically unattractive and contributory to flooding from stormwater runoff. These streetscapes look hard and uninviting, and their improvement will increase overall economic performance as well as aesthetics. 15
17 Recommendation #6: Develop a community greening program to stimulate attractive landscaping on private properties. Targeted seed money of matching grants from municipal investment can be supplemented by fundraising from corporate sponsors. A new Design Committee comprised of community volunteers can be established to review applications and provide technical/design support to interested businesses, and can coordinate with the Shade Tree Commission to plant street trees. Commercial property signage and building facades many of Haverford Township s commercial properties are older, under-maintained and in need of reinvestment. Typically revitalization programs focus on improvements to the exterior facades of commercial properties, which face the public view. Market interventions such as matching grant programs are needed as a stimulus; otherwise private investment by businesses and landlords would already have occurred. Attractively designed exterior signage, awnings and new exterior paint jobs (per design standards and review), have proven to attract new customers to a business and help to recruit new businesses to a revitalized district. 16
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22 Recommendation #7: Develop a façade improvement 50%/50% matching grant program for commercial properties. The new Design Committee previously referenced can review sign/façade applications and provide technical/design support to interested businesses, along with the matching landscaping grants mentioned above. Grant funding may be available from PA Dept. of Community and Economic Development (pending state budget approval; preferential treatment is given to applicants with Keystone Communities designation). This proven revitalization tool gets immediate, visible results, and is a key component of many public-private partnerships. Matching grant funding often stimulates private investment from landlords and tenants of a much greater amount. Municipal investments would be supplemented by fundraising from corporate sponsors. Public parking the supply and demand for on-street and municipal lot parking varies throughout Haverford Township s commercial corridors. Newer uses such as the YMCA and incoming restaurants will continue to impact the parking demand. The possible reconfiguration of on-street parking should be considered, to identify improvements to parking supply, traffic and pedestrian circulation, and business development opportunities along the commercial corridors. For example, conversion from parallel to diagonal parking along certain roadways can calm traffic flow and positively change the character of a district. Recommendation #8: commission a traffic engineer to examine parking supply, demand, patterns, regulations, metering and rates. Such a study might be combined with a traffic congestion/pedestrian safety study previously recommended. 21
23 Business retention Haverford Township s existing businesses have varying needs for programs and services that would facilitate their operating competitively and successfully in the Township. Technical support and training is one approach to becoming more businessfriendly (an objective identified in the Township s RFP for economic development services). Training topics may include commercial real estate, merchandising, ecommerce or social media marketing, to name several. The current survey of Township businesses asks participants to identify the topics of greatest need for training/support. This important feedback can be used to identify areas of need in the business community. Recommendation #9: develop a Township-sponsored business seminar series with presentations by local experts, to provide needed support and another partnership opportunity between the Township and the business community. The Haverford Township Free Library is well-positioned to participate in such programming, and other prospective partners and sponsors would be recruited. Economic Development Program Sustainability the PA Department of Community and Economic Development may have grant funding opportunities in the near future, depending on the outcome of the current budget situation in Harrisburg. During the past administration, DCED had funded several types of grants for downtown revitalization programs, including planning, implementation, and façade improvements; and designated Keystone Communities programs received priority status for their grant funding. To receive this designation, DCED requires each municipality to make a five-year funding commitment to a Main Street manager s salary; this dedicated role can be shared with other municipal functions. Recommendation #10: evaluate the costs and benefits of seeking DCED Keystone Communities designation for possible future grant opportunities and financial commitments. 22
24 In summary, consistent progress towards Haverford Township s improvement plans for public spaces has been occurring; however improvements in the private sector have been lagging; and regional development patterns have been negatively impacting local traffic congestion and parking conditions. Through a coordinated economic development program, Haverford Township now has the opportunity to build on its recent momentum to make additional positive impact in the community. The proposed programming will help to stimulate improvements to benefit local businesses and residents alike. Designed and delivered properly, such programs are proven to contribute to increased economic performance, an engaged business community and a more positive civic environment in which to live, work and play. 23
25 2016 Economic Development Program Recommendations and Budget Recommendation Conduct ongoing outreach campaign targeting property owners, real estate developers & brokers. Includes conducting commercial real estate breakfast event. Develop business recruitment campaign - including promotional materials highlighting demographics, market spending power and opportunity, etc. Compile inventory of commercial properties - vacancies and redevelopment opportunities Landscaping "seed money" matching grants Façade improvement grants Develop business retention program: training seminar series focused on business needs Transportation plan - to research traffic congestion, pedestrian safety issues; parking supply and demand Conduct brand identity development project to highlight each district Budget Estimate Source $7,000 Downtown Dynamics $7,000 Downtown Dynamics $6,000 Downtown Dynamics $25,000 Downtown Dynamics $25,000 Downtown Dynamics $5,000 Downtown Dynamics TBD TBD DVRPC or traffic engineer Branding/advertising agency; Downtown Dynamics project managing Notes Develop list of property owners and real estate developers/ brokers; plan event; prepareinvite; arrange speakers & develop presentation; event logistics. Research, develop, write, edit and purchase printing. Purchase demographic & psychographic retail market reports. Upfront market research + ongoing maintenance $20,000 in grant funding; $5,000 in program development and administration. $20,000 in grant funding; $5,000 in program development and administration. Program development, administration and coordination Pricing subject to project scoping and proposal bidding process 24
26 Addendum - Haverford Township Commissioners survey results - Sample business recruitment flyer: Old City District - Sample demographic reports: Nielsen - Sample façade grant program guidelines: Ardmore Initiative Haverford Township Commissioners' Economic Development Priorities Survey Results Possible Township Activity / Outcome Very Important Important More jobs 2 5 Increased ratables Stabilized taxes 4 3 Attracting new businesses / reducing commercial vacancies 6 1 Enhancing the current mix of retailers/restaurants/service businesses 4 3 Retaining existing businesses 6 1 Attracting new development/investment 5 2 Stronger relationship between Township and business community 6 1 Enhanced resource to local businesses 5 2 More business-friendly 6 1 Technical support/assistance for local businesses Help local businesses to form associations / organize Better understanding of land use/development issues 3 3 Proactive changes to land use / development 2 3 Design guidelines for property renovations Facade improvement grants 4 2 Parking plan 5 1 Traffic/access plan 4 2 Landscaping plan 2 4 Special events 2 4 Wayfinding signs for drivers (directional; "parking" etc.) Wayfinding signs for pedestrians Gateway signs - identifying Haverford Township 5 1 New identity for business districts / branding 3 3 Distinctive banners on streetpoles Distinctive street lighting Holiday lighting Business directory for consumers 3 3 Consumer attraction marketing 5 1 Cooperative advertising 2 3 Marketing & branding materials 2 4 Periodic survey of property owners, tenants 1 4 Periodic consumer surveys 2 4 Periodic meetings with police and businesses 3 3 Crime prevention programs Not Important 25
27 Most popular responses: Attracting new businesses / reducing commercial vacancies Parking plan Façade improvement grants More business-friendly Stronger relationship between Township and business community Consumer attraction marketing Retaining existing businesses Gateway signs Increased ratables Stabilized taxes Enhancing the current mix of retailers/restaurants/service businesses Attracting new development/investment Enhanced resource to local businesses Technical support/assistance for local businesses Help local businesses to form associations / organize 26
28 Sample Business Recruitment Flyer 27
29 Nielsen Demographic & Psychographic Report Formats 28
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32 Sample Façade Grant Program Guidelines
33 General Information The objective of the program is to encourage the architecturally appropriate design or renovation of commercial building facades to enhance their appearance. Funds from The Department of Community and Economic Development (DCED) will serve as an incentive to stimulate private investment in fayade renovations, resulting in a more competitive and economically viable business district. An applicant may apply for matching funds of up to $5,000. Grant awards may not exceed 50 percent of the total documented cost of materials and labor for the project. Priority will be given to projects which make a significant improvement to the building, encompassing upper-level renovations and/or multiple facades. Priority will be given to those projects which use energy-efficient and environmentally friendly materials (i.e Low E glass, no VOC paint, etc.) For more info, please see the Ardmore Initiative 'Green Guide'. No applications will be accepted unless grant funding for the program is in place. Projects considered 'deferred maintenance' by the Design Committee may not be eligible. Project requests will be considered as they are received by The Ardmore Initiative BOA Design Committee. Projects must be completed within six (6) months of approval or funds may be reallocated. The applicant may apply to the committee for extension approval. Program Boundaries: Any property within The Ardmore Initiative Business District Authority (BOA) boundaries is eligible for this program. The East-West boundaries of The Ardmore Initiative extend from Wyoming Avenue and 333 W. Lancaster Avenue on the western end to 233 E. Lancaster and 218 E. Lancaster Avenue on the eastern end. The northern boundary follows the railroad tracks and the southern boundary proceeds along Rittenhouse Place to E. Athens Avenue, which is included in the district, and along Cricket Avenue beyond E. Athens Avenue to #123. The commercial properties along the west side of Ardmore Avenue to #26 are also part of the district. Eligibility Requirements: Only commercial buildings within the defined Business District Authority's target area are eligible (see program boundaries above). Only exterior renovations - either partial or full fa9ade renovations - are eligible. These renovations may include the front fayade or any side or rear fayade which is accessible and/or visible from a public right-of-way or municipally-owned, metered parking lot. The committee will entertain requests for additional fayades which are, in the opinion of the committee, visually significant. Removal of old signage is an allowable use of grant funds, pending DCED approval Both business and property owners may apply. Property owners must be the owners of record on the Lower Merion Township tax rolls. Business owners will need the signed approval of the property owner of record. Funding is per PROJECT, not per building or lax parcel; a business or property owner may apply more than once pending availability of funds Property owner must be current on all municipal taxes, including but not limited to real estate taxes, school taxes, and The Ardmore Initiative assessments. Fayade renovations of properties located within Ardmore's Historic District of Ardmore's business district require a Certificate of Appropriateness from Lower Merion's Historical Architectural Review Board. To determine whether your property is in the Historic District, please visit qe=426 The project application must be approved by the Design Committee prior to any demolition or construction of that part of the project for which funding is being sought. No funding will be provided for work completed before the approval process. Fayade grant projects must follow Secretary of Interior standards for historic rehabilitation. For more information go to hab/ If the total project cost is above $25,000, prevailing wage guidelines apply. Applicant must provide proof of compliance (payment stubs, entries, etc). Please ask at your preapplication meeting for more info.
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