Creative Financing and Long Term Revitalization. Gynii A Gilliam

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1 Creative Financing and Long Term Revitalization Gynii A Gilliam

2 Creative Financing

Small Business Financial Challenges The Challenge Quick Review Small Business Owners will do anything to stay independent; and Prefer to borrow from (or

3 Small Business Financial Challenges The Challenge Quick Review Small Business Owners will do anything to stay independent; and Prefer to borrow from (or use as resource) family or friends, take out second mortgages on or max out credit cards to stay afloat However, without some financial help they may fail

4 Why it s so important to identify financial solutions The Why? Extremely vulnerable after a disaster Quick Review: 1 in 4 never re-open after a disaster, yet the backbone of many economies 75%+ don t have proper insurance Lose avg. $3,000 per day if closed Medium sized businesses lose avg. $23,000 per day

5 Grants & Loans Quick Review: Already discussed various agency funding from SBA, EDA, USDA, Interior, Transportation, HUD, DEQ, EPA, SBDC, and various state resources, etc. For planning, buildings, RLF s, infrastructure, etc. --numerous examples across the country

6 Foundation Funding Private Foundations Another local, state and regional resource Also generally designed for organizations & communities that can help businesses Example: Northland, next slide

7 Case Study: Northland Foundation June 2012: Northeastern Minnesota floods Northland Foundation worked with partners to develop the Business Flood Recovery Fund Goal: To assist businesses to meet needs related to flood damage to their operations. Within six weeks of launching, the Northland Foundation successfully raised $364,010 from other foundations, corporations, local businesses, individuals, and the state $364,010 in funds were awarded to 68 businesses: Employed 874 people. A majority of the businesses were small (1-3 employees), sole proprietorships, operating out of people s homes Recipients experienced damages in excess of $2.3 million.

8 B2B Assistance B2B Assistance Fast, quick response, usually creative Some can be low to no-cost Idaho Examples: Operation Help, Main Street Beautification, Ready Teams Critical that news goes out to show communities/state ready to receive tourists and business

then set up local 501(c)3 to raise money that could be used to help residents and small businesses Opened a

9 Case Study: Communities creating their own financial vehicle Bastrop County, Texas pop. 75,000 Thousands of acres burned in wildfires in 2001, 2015, ff by floods and a tornado Worked with United Way, then set up local 501(c)3 to raise money that could be used to help residents and small businesses Opened a recovery center in October 2015 Created a website where people could donate, volunteer or get information gtermrecovery.org

Case Study: B2B Assistance May 21, 2013, Moore, OK, EF-5 tornado 300 businesses in path; 2,100 businesses within one mile of path Greater Oklahoma City Back to Business Initiative Impacted businesses

10 Case Study: B2B Assistance May 21, 2013, Moore, OK, EF-5 tornado 300 businesses in path; 2,100 businesses within one mile of path Greater Oklahoma City Back to Business Initiative Impacted businesses posted needs, for items, e.g. furniture, space, equipment Non-impacted businesses responded by giving or lending what was needed The regional Greater Oklahoma City Chamber worked with local chambers to establish the Tornado Business Relief Fund.

11 Long Term Revitalization Strategies

12 How many of you are dealing with these issues? And what are you doing about it? Group Discussion Chronic vacancy in certain locations? Lack of affordable housing? Lack of infrastructure affecting business areas? High unemployment? Lack of resources for revitalization? Out-migration of young people? Did these issues already exist before the disaster? Did they get worse?

Vacancy & Blight Stats: 2001-10 vacant housing increased by 44% to 4.

businesses around it Complex causes: Owner leaves and can t find a buyer Population

13 Vacancy & Blight Stats: vacant housing increased by 44% to 4.5M Vacant properties are linked to increased crime, declining property values HUD, w/in 500 feet lose 8.7% in value Maintenance & demolition is costly Left alone can grow rapidly, affecting businesses around it Complex causes: Owner leaves and can t find a buyer Population decline from local business/industry losses Foreclosure Obsolescence of building Manmade or natural disaster rapid or widespread Examples of what to do: Tedder Industries, SPiCRM, Orgill

14 Workforce/ Talent Shortage Group Discussion: What are some of the ways your communities are addressing talent shortages? Example: Talent Initiative Ambassador Program, Talent Retention, Talent K-12 Outreach

15 Long Term Revitalization Steps Mobilize for Change Partnership & Collaboration is Key Identify/Inspire champions Assess community needs (SWOT) Develop a shared vision Incorporate revitalization into CEDS & other community vision initiatives (i.e., CdA Vision 2030, I90, Talent Initiative, Health/IT Focus) Organize resources

16 Mobilizing for Change Players Identify Relevant Stakeholders Identify Revitalization Champion(s) Gather Residents to Spur Interest and Educate

17 Assess Community Needs Business and Community Surveys Provides qualitative and quantitative information community needs Information collected can be used to: Formulate issues Gather ideas for redevelopment Gauge what is valued in the neighborhood

18 Assess Community Needs Information to gather, examples: Estimates of property and equipment damage Economic activity loss Workforce disruption and loss Utility disruption Infrastructure that may be vulnerable or need improvement Loss of suppliers/loss of customers Financial and technical assistance needs

19 Assess Community Needs Tools for Assessment - Survey methods Large group meeting with businesses One-on-one meeting with business owners or managers Neighborhood gatherings or meetings Neighborhood asset mapping Deploy with partners (college interns, nonprofit organizations, etc.)

Assess Community Needs Develop a Shared Vision Asset Mapping From needs, start developing that shared vision by mapping assets To show highlights and

20 Assess Community Needs Develop a Shared Vision Asset Mapping From needs, start developing that shared vision by mapping assets To show highlights and interconnections Doesn t have to be very detailed Assets are physical, social, economic, etc. e.g. relationships, cultural mapping, and human capital

21 Develop a Shared Vision Engage everyone critical to sustainability & success Engagement can awaken authentic desire for change from the community Jump-start the process with an inclusive gathering e.g. charrettes or activities that get attendees identifying issues, recognizing progress

22 Incorporate Revitalization & Resiliency Plans into CEDS Incorporate identified priorities and revitalization vision in your CEDS Consider vulnerable infrastructure & incorporate resiliency measures and regional hazards in mitigation plans Document ideas from businesses that can be used for recovery strategies. Inform & continue to engage the business community about plans Remind all that recovery will be faster with a predictable path and sense of direction

23 Organize Resources to Implement Plans Create a Redevelopment/Revitalization Taskforce Key neighborhood and community stakeholders Pools financial and human resources Take advantage of existing resources Can be community clubs, organizations, personnel from a nearby military base Scope of work will vary, but can oversee shared vision and plans. Access any existing organization, if one already exists don t duplicate

24 Tools & Strategies Business improvement districts (BID) Revolving loan funds (RLF) Infrastructure Financing Strategic use of incentives National Main Street Programs Historic Preservation Programs Grassroots / volunteer campaigns Art centers as a catalyst for revitalization

Opportunity Area - Build Back Better Examples: Rebuild damaged bridges to include wider access to make a business district more marketable Implement long-desired

25 Opportunity Area - Build Back Better Examples: Rebuild damaged bridges to include wider access to make a business district more marketable Implement long-desired street redesign, streetscapes, etc. when water and sewer lines are replaced downtown Planning a new parking garage in a damaged area to accommodate denser future development

redevelopment Establish designations that can improve business activity on commercial streets

26 Opportunity Area Revamp Zoning & Permitting process Incentive Zoning and Permitting Work with city to ease zoning & permitting process Revamp existing zoning that are detrimental to redevelopment Establish designations that can improve business activity on commercial streets Example Feret St, New Orleans overlay as arts and culture district eased permitting 20 new biz s opened

Opportunity Area: Art Centers as a Catalyst for

County, NJ One of the poorest towns is experiencing

Center, Alexandria, VA A surplus federal building became a

27 Opportunity Area: Art Centers as a Catalyst for Revitalization Glasstown Arts Center, Milleville Cumberland County, NJ One of the poorest towns is experiencing revitalization in its arts district Torpedo Factory Art Center, Alexandria, VA A surplus federal building became a landmark attraction and special event space attracts $16M annual economic benefit

28 Case Study: Elgin County, ON (Pop. 49,556) County created a financial incentive program to stimulate private investment in seven small towns, cities and rural areas County provides $100,000/year in annual budget Businesses can apply for grants for commercial, agriculture, tourism, outdoor recreation and mixed use Private sector has to match up to 50% for some grants Applications are reviewed six times a year Learn more at

29 Case Study: Elgin County, ON: Successful grant applications Iona General Store, Dutton-Dunwich (pop. 3,876), $15,000 grant to refurbish Iona General Store, an enhanced façade and a bed and breakfast. Great Lakes Farm, Southwold (pop. 4,494). $13,178 grant for the conversion of the Great Lakes Farms barn into a cold storage facility and parking lot leveling. Nancy and Dave Gowan, Dutton-Dunwich (pop.3,876), $14,641 grant for the renovation of downtown building to serve as a health center.

30 Case Study: Hopkinsville, KY (Pop. 31,577) Historic Downtown Hopkinsville Incentives Program 50/50 matching grant reimburses up to $20K in investment expenses for renovations Loan Program provides a 24-month Certificate of Deposit at loan closing to a local bank, not to exceed $35,000 for renovations Preservation in Lieu of Taxes (PILOT) Program allows for real estate taxes to be based on the pre-developed assessed value for 5 years

Case Study: Asheville, N.C. Shop Local Programs Asheville

times more money back into the local economy than chain stores

Asheville s unique character and inspire entrepreneurship;

31 Case Study: Asheville, N.C. Shop Local Programs Asheville Grown Business Alliance Locally owned businesses circulate 3 times more money back into the local economy than chain stores Goals: Strengthen local purchasing/supply chains; grow Asheville s unique character and inspire entrepreneurship; foster local decision-making and collaboration Big Love Festival Go Local Card

32 What efforts have taken place to spur activity in your region s downtowns? Discussion What are these communities doing to attract, retain and expand locally owned retailers? Helping the local business owner Are we truly addressing your needs (vs what we think you need)?

33 More Resources 6 Case Studies in Vacancy and Blight o In July 2014 IEDC launched a publication highlighting case studies from across the country 33

Additional Resources Rural Community Downtown Revitalization - https://ric.nal.usda.

34 Additional Resources Rural Community Downtown Revitalization - Thoughts on the Economic Revitalization of Small Town Downtowns -Econ Dev Journal -

35 Final Thoughts: How to Drive Revitalization Listen to the community & enlist their support (Create a strong partnerships/collaborations) Create a better vision and incorporate into CEDS Leverage resources -grants, public-private support Use a variety of tools in a holistic approach Maximize existing assets Persevere: This is for the long haul! Questions?

Economic Development Element of the Arroyo Grande General Plan. Prepared by the City of Arroyo Grande Community Development Department

Economic Development Element of the Arroyo Grande General Plan Prepared by the City of Arroyo Grande Community Development Department Adopted by City Council Resolution No. 4489 on October 9, 2012 Table