Economic Development Plan

Transcription

1 Economic Development Plan Shaping Our Future A Comprehensive Plan for Montgomery County M O N T G O M E R Y C O U N T Y, P E N N S Y L V A N I A

2 Montgomery County Commissioners James R. Matthews, Chairman Thomas J. Ellis, Esq. Ruth S. Damsker Montgomery County Planning Commission Board P. Gregory Shelly, Chair Scott Exley, Vice Chair Dulcie F. Flaharty Henry P. Jacquelin Pasquale N. Mascaro Megan M. McDonough, Esq. Roy Rodriguez, Jr. Charles J. Tornetta V. Scott Zelov Kenneth B. Hughes, Director

3 Economic Development Plan Shaping Our Future A Comprehensive Plan for Montgomery County 2005 M O N T G O M E R Y C O U N T Y P L A N N I N G C O M M I S S I O N

4 Economic Development Plan This plan was financed in part by a grant from the Commonwealth of Pennsylvania, Department of Community and Economic Development.

5 Table of Contents Shaping Our Future Introduction vii Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Economic Development Goals and Actions Goal 35. Maintain the County s Diverse Economy Goal 36. Attract and Retain Businesses by Maintaining a High Quality of Life... 2 Goal 37. Create a Good Business Climate Goal 38. Retain a Skilled Workforce for County Businesses Goal 39. Support a Readily Available Workforce Goal 40. Revitalize the County s Downtowns and Main Streets Goal 41. Adaptively Reuse Vacant and Underutilized Industrial Sites Goal 42. Redevelop Vacant and Underutilized Shopping Centers Economic Diversity Existing Conditions Economic Diversity Plan Business Attraction and Retention Existing Conditions Business Attraction and Retention Plan Business Climate Existing Conditions Business Climate Plan Workforce Training Existing Conditions Survey Results Existing Workforce Training Workforce Training Plan Future Workforce Needs Recommended Actions for the Workforce Investment System Workforce Availability Existing Conditions Spatial Barrier Problems Possible Causes of Spatial Barriers Workforce Availability Plan Business Location Decisions Transportation Access Housing Day Care and Other Services iii

6 Economic Development Plan Chapter 7 Chapter 8 Chapter 9 Chapter 10 Appendix Downtown and Main Street Revitalization Existing Conditions Downtown and Main Street Revitalization Plan Attracting and Keeping Businesses Improving Downtown Image Conclusion Industrial Land Redevelopment Existing Conditions Industrial Land Redevelopment Plan Addressing Environmental Concerns on Brownfield Sites Encouraging New Development Conclusion Retail and Shopping Center Reuse Existing Conditions Retail Vacancies Retail and Shopping Center Reuse Plan Need for Retail Facilities County-Wide Retail Demand Regional Retail Demand Conclusion on Demand Reuse and Rehabilitation of Shopping Centers and Strip Commercial Areas Require Good Design of Shopping Centers Match Retail Zoning to Demand Plan for Future Vacancy of a Proposed Retail Development.. 95 Alternative Uses in Retail Buildings New Mixed-Use Development in Defunct Centers Pulling It All Together The Economy as a Whole The Economy as a Whole Relationship of Economic Development to the Whole Comprehensive Plan Implementation Conclusion Economic Development Organizations and Programs in Montgomery County Part I: Economic Development Organizations Federal Agencies involved with Economic Development State Agencies Involved with Economic Development County Agencies Involved with Economic Development Regional and Nonprofit Organizations Involved With Economic Development Summary Table of Economic Development Organizations Chambers of Commerce Part II. Economic Revitalization Programs iv

7 List of Figures Shaping Our Future Chapter 2 Figure 1 Unemployment Rate Figure 2 Montgomery County Industries by Number of Jobs: Figure 3 Manufacturing Jobs in Figure 4 Establishments by Number of Employees Figure 5 Major Employment Centers in Montgomery County Chapter 3 Figure 6 New Business Added: Figure 7 New Jobs Added: Figure 8 Factors Affecting High Tech Locations According to the Milken Institute Figure 9 Regional Position Chapter 4 Figure 10 Chambers of Commerce in Montgomery County Chapter 5 Figure 11 Occupation Status of Resident Labor Force for Montgomery County Figure 12 Educational Attainment of Resident Work Force - Montgomery County Figure 13 Shortages by Key Positions - Employers Responses to 2001 Survey Figure 14 Areas Where K-12 Have the Greatest Deficiencies - Employers Responses to 2001 Survey Figure 15 Main Responsibilities of the County Workforce Investment Board Figure Demand Occupations with Over 100 Annual Openings Chapter 6 Figure 17 Jobs Have Grown and Dispersed in the County Figure 18 Current or Potential Major Road Improvements Figure 19 Potential Expanded Public Transportation Facilities Chapter 7 Figure 20 Major Downtown and Main Street Areas Chapter 8 Figure 21 Potential Industrial Land Redevelopment Areas Chapter 9 Figure 22 Shopping Centers, Malls, and Large Stand-Alone Stores in Figure 23 Retail Demand in Montgomery County in 2000 and Figure 24 Regional Malls Serving Montgomery County: Figure 25 Adjusted Retail Demand in Montgomery County in 2000 and Figure 26 Planning Regions in Montgomery County Figure 27 Retail Demand in Montgomery County Regions and Figure 28 Grocery Stores Serving Montgomery County as of Figure 29 Department Stores Serving Montgomery County as of Chapter 10 Figure 30 Locations for New Nonresidential Development Figure 31 Economic Development Plan Implementation Matrix v

8 vi

9 Introduction Introduction If Montgomery County is known for anything, it is jobs, economic diversity, and growth. For many in the region and state, the county is the premier location for high-tech, white collar, and well-paying jobs. People come here to shop, to work, to invest, to build, and to learn. For the county as a whole, keeping this strong economy is critical. Economic development and growth have a huge impact on quality of life, community vitality, and community character. In America, a high quality of life is very difficult to achieve without a well-paying and meaningful job. Work, in itself, provides a sense of purpose for many people. To have a vibrant and vital community, people must be out and about - working, commuting, and shopping. And, as much as any other factor, economic development and growth shape community character, determining which buildings become obsolete and how new buildings will be designed. This plan, Economic Development Plan Shaping Our Future: A Comprehensive Plan for Montgomery County, is intended to guide economic development decisions to the year In particular, this plan lists specific government policies and private sector actions that will strengthen the county s diverse and thriving economy and encourage revitalization, reuse, and redevelopment of the county s main streets, underutilized shopping centers, and brownfield sites. A worker returning from 50 years ago, who most likely worked in an industrial plant, would probably be confused by the new Montgomery County economy, with its office complexes, malls, and modern industrial buildings. This worker would certainly notice the benefits of this new economy, including large homes, many stores, a cleaner environment, and more choices for the everyday citizen. But this worker would also be surprised at the deterioration of older economic landmarks the big steel plants, large factories, and downtown retail shopping districts. Even areas that were farmfields 50 years ago sometimes have vacant industries and derelict shopping centers on them now. To address these issues and to maintain the county s thriving economy, this Economic Development Plan proposes, in a series of chapters, to: Maintain the county s diverse range of companies and businesses, vii

10 Economic Development Plan Economic Development Vision A continued high quality of life leading to a diverse and thriving economy. Reuse, revitalization, and redevelopment of main streets, underutilized shopping centers, and brownfield sites. Attract and retain businesses by improving the quality of life and the business climate, Effectively train the county s workforce, Help workers get to their jobs, Revitalize old Main Street areas, Reuse vacant and underutilized brownfield sites, and Redevelop deteriorating shopping centers. The last chapter of this plan pulls together the various recommendations made throughout the plan and includes a map showing the most appropriate locations for new nonresidential development. Overall, this Economic Development Plan, if fully implemented, will help the county keep its thriving economy while directing new growth towards traditionally overlooked areas, including main streets, brownfield sites, and old shopping centers. viii

11 Chapter 1 Economic Development Goals and Actions This chapter lists specific goals that will help maintain the county s thriving economy while also redirecting more economic activity towards Main Streets, underutilized shopping centers, and brownfield sites. Each goal is followed by a list of actions that will help achieve the goal. Economic development and growth are primarily private sector activities. However, a wide range of government policies and actions can strongly influence private sector decisions, particularly locational decisions that will affect the county and its residents as well as the businesses themselves. The goals and actions in this chapter will help the private sector, including high-tech and other knowledge industries, choose Montgomery County choose to start here, relocate here, or remain here. The goals and actions listed below are taken from Vision Plan Shaping Our Future: A Comprehensive Plan for Montgomery County. The numbering of the eight goals below corresponds to the numbering in this Vision Plan. A diverse economy can withstand downturns and recessions in specific industries. Goal 35. Maintain the County s Diverse Economy A diverse economy will be maintained by: Keeping the county s strong manufacturing sector. Expanding the high tech, research, and service sectors. Retaining the agricultural economy. Maintaining the importance of the county s regional shopping meccas. Encouraging the creation of small and mid-sized companies in addition to larger firms. Marketing the county s cultural, historic, and natural resources. Maintaining a diverse economy is critical for the county. 1

12 Chapter One Goal 36. Attract and Retain Businesses by Maintaining a High Quality of Life A high quality of life, including premier recreation opportunities, is important for attracting business. A strong county economy provides jobs, incomes, and tax revenues. The strength of the county s economy will depend on retaining the county s existing businesses, helping these businesses prosper, and attracting new businesses. There are many factors that effect businesses location decisions, and some of these factors can be influenced by state, county, and municipal governments. Nowadays, many businesses can locate anywhere and are not as dependent on raw materials or local markets as they used to be. These businesses must be given a reason to choose the Philadelphia area and Montgomery County - reasons like the area s high quality of life. A good business climate will help businesses, which in turn provide jobs, income, and tax revenues. A high quality of life will be maintained for county employees and businesses by: Developing attractive, convenient, and diverse shopping areas, downtowns, office parks, and residential neighborhoods. Providing a variety of housing choices. Providing parks, trails, and other recreation areas. Preserving open space, farmland, and the county s cultural heritage. Managing traffic congestion by improving roads, using new technologies, and reducing rush-hour demand. Supporting and expanding alternative transportation methods, including public transit, walking, and biking. Keeping the county s existing airports. Maintaining the county s high quality schools. Goal 37. Create a Good Business Climate A good business climate will be created by: Enhancing communication between businesses, government, and the public. Working with businesses to address their concerns with county and local government. Supporting business expansion programs and opportunities. Providing adequate utilities, including electricity, phone service, and internet connections. Encouraging slow and steady overall growth in the county, which will expand the number of potential customers for businesses. Maintaining a favorable tax environment for businesses. 2

13 Economic Development Goals and Actions Goal 38. Retain a Skilled Workforce for County Businesses A skilled workforce will be encouraged by: Supporting effective workforce investment programs. Identifying new skills needed by local businesses and working with schools, private employers, and other training providers to provide the necessary training. Providing resources and information on workforce development services to all job seekers, and connecting these potential workers to the workforce system. Continuing to monitor the progress of welfare to work programs and providing the resources necessary for these programs. Encouraging youth to remain in school and connecting these youth with unsubsidized employment opportunities as early as possible. Directing resources to underemployed incumbent workers to assist them in obtaining meaningful employment and self-sufficiency. Providing work readiness and life skills training to those in need. Continually monitoring the workforce development system to identify gaps, and directing resources to bridge those gaps. A skilled workforce makes the county an attractive business location, especially for higherpaying businesses that need more skilled workers. People who receive workforce training typically earn better incomes and have more rewarding work than their peers. Good education and a trained workforce are vital elements of a strong economy. Goal 39. Support a Readily Available Workforce A readily available workforce will be supported by: Encouraging the development of affordable owner-occupied housing and rental housing in addition to middle and upper-income housing. Expanding automobile access and public transportation access to employment centers. Placing child or adult care facilities around the 3

14 Chapter One Making it easier for county workers to get to work, live near work, and be at work will not only help businesses but will also help these workers save time and frustration. county, including within office parks and industrial centers. Providing convenient access to other services needed by workers, such as banks and dry cleaners. Goal 40. Revitalize the County s Downtowns and Main Streets Workers must be able to get to their jobs. Revitalizing downtowns and Main Streets not only improves these specific areas, but also helps control growth and preserve open space. The county s main street commercial districts are important community focal points. Although state, county, and municipal actions are important for revitalizing downtowns and Main Streets, private business is critical. Without private investment, little will change in these areas. This goal will be achieved through the following actions: Improving access from the county s highway system to these areas. Allocating sufficient resources for improving crime prevention, education, and basic public services. Locating office buildings and small-scale retail businesses in downtowns. Preserving existing historic buildings and streetscapes. Encouraging new development to match the character and walkability of existing downtown development. Encouraging housing within downtowns, including market rate housing and apartments over stores and offices. Improving the infrastructure, streetscape, and signage of downtown areas. Hiring Main Street managers to facilitate revitalization, promote business growth, and coordinate local events. Taking advantage of current federal, state, and county programs that help finance redevelopment or encourage businesses to locate in downtown areas. 4

15 Economic Development Goals and Actions Attracting national retailers to older communities, where appropriate. Creating well-signed, properly managed, and adequate parking facilities. Changing the image of the county s downtowns by highlighting the advantages of these areas. Goal 41. Adaptively Reuse Vacant and Underutilized Industrial Sites This goal will be achieved through the following actions: Encouraging new development on these underutilized industrial sites. Reusing former industrial sites cleans up the environment, improves property values, places jobs near residents, and helps control growth and save open space. Promoting environmental assessment and remediation of contaminated sites. Encouraging implementation of the state Land Recycling Program to remove barriers to redevelopment. Mitigating the potential negative impact of redevelopment by using adequate buffering and matching the character of the neighborhood. Creating an inventory of vacant or underutilized industrial sites and marketing these sites. Underutilized industrial areas should be redeveloped. Goal 42. Redevelop Vacant and Underutilized Shopping Centers This goal will be achieved through the following actions: Encouraging new retail stores to reuse existing commercial sites. Limiting the amount of land zoned for retail uses, so that existing shopping centers are used first. Finding new uses for obsolete shopping centers, such as offices and gyms. Replacing some vacant and underutilized shop- 5

16 Chapter One Redeveloping old shopping centers improves property values, makes the community more attractive, and helps control growth and save open space. ping centers with new mixed use developments that create a focal point for the community. Investigating the possibility of having developers of new shopping centers or big boxes provide funding or other guarantees for the redevelopment of the shopping center if it becomes vacant. Creating an inventory of vacant or underutilized shopping centers and marketing these centers. Underutilized or vacant shopping centers should be renovated or redeveloped to another use. 6

17 Chapter 2 Economic Diversity Variety s the very spice of life. This adage is as true for the economy as for other parts of life. Economic variety and diversity are critical for a large dynamic economy so it can withstand downturns and recessions in specific industries while offering a range of opportunities for job seekers and entrepreneurs. Generally, diverse economies are stable and able to grow steadily. Fortunately, Montgomery County is blessed with a growing and diverse economy. Unlike places that are dependent on one or a few industries, like automobiles, lumber, oil, or finance, Montgomery County has a wide range of industries, with both small and large businesses. The county s goal is to keep this diversity while expanding its share of highpaying and fast-growing high-technology businesses. This chapter of the economic development plan examines ways to maintain a stable, diverse, and growing economy, first by examining existing conditions and then by outlining an economic diversity plan. Existing Conditions Montgomery County has one of the strongest economies in Pennsylvania. It is both stable and diverse. The county s stable economy helps workers, educators, investors, businesses, and the government anticipate Figure 1 future economic conditions. UNEMPLOYMENT RATE In 2001, the county s unemployment rate was 3.5 percent, less than the state rate of 4.7% and the national rate of 4.8%. In fact, Montgomery County consistently has one of the lowest unemployment rates in the state and, over the past 30 years, has always had a lower unemployment rate than Pennsylvania or the nation, sometimes with a significantly lower rate. Over the past 30 years, the county s economy has grown steadily, providing a Source: U.S. Bureau of Labor Statistics. 7

18 Chapter Two In 2000, Montgomery County had 497,214 jobs. solid base for new businesses and investors. In 2000, Montgomery County had just under half a million jobs, with 497,214 jobs, according to the 2000 U.S. Bureau of Labor Statistics County Business Patterns. This is more than double the number in 1970 and represents an approximate 2.5% annual growth rate in jobs. During this same time period, the nation s jobs grew at an approximate 2% rate, while Pennsylvania s grew at a little over 1%. The county s diverse economy also provides a wide range of opportunities. Montgomery County has many different industries, running the gamut from small retailers to giant manufacturers. Figure 2 MONTGOMERY COUNTY INDUSTRIES BY NUMBER OF JOBS: Source: County Business Patterns, 1970 and Over the last 30 years, the county economy has shifted dramatically. Like much of Pennsylvania in the past, Montgomery County was primarily dependent on manufacturing, which accounted for over 42% of the jobs in the county in 1970, according to County Business Patterns data. By 2000, that ratio was down to 17.2% of the jobs, which is still higher than the national ratio of 14.4%. 8

19 Economic Diversity Meanwhile, the portion of jobs in the service sectors increased dramatically. General services, finance\insurance\real estate services, and health services all saw significant increases in total number of jobs and share of jobs, with the share of jobs more than doubling in each of these categories. Although Montgomery County has a diverse base, there are particular industries where the county is stronger than the national norm, according to an analysis of County Business Patterns data. Industries where the county has 50% more employment than the national norm and where there are at least 5,000 jobs include mutual fund investments, pharmaceutical manufacturing, building services, insurance carriers, computer systems design, elementary and secondary schools, management offices for companies, security guard services, printing, and insurance agencies/adjusters. Manufacturing industries where the county has 50% more employment than the national norm and at least 1,000 jobs include pharmaceuticals, office furniture, industrial machinery, meat processing, valves/pipes/other metal fabricating, and machine shops/fastener manufacturers. In 2000, the county had 83,210 manufacturing jobs, more than any other county in the state. In fact, Montgomery County has led the state in manufacturing jobs since Figure 3 MANUFACTURING JOBS IN 2000 Source: PA County Industry Trends,

20 Chapter Two The county has many small and medium-sized manufacturers, such as Specialty Extrusion of Royersford. Figure 4 ESTABLISHMENTS BY NUMBER OF EMPLOYEES Source: PA County Industry Trends, Over time, manufacturing in the county has shifted from heavy industries, such as steel manufacturing, tire making, and chemical processing, to lighter industries, such as electronic assembling and pharmaceutical manufacturing. Approximately 55,000 people worked in hightech industries in Montgomery County in 2000, by far the largest number in the state, according to a 2002 Labor Market Report by the PA Department of Labor and Industry. These people worked in a range of industries including pharmaceuticals, computer and office equipment manufacturing, communication equipment manufacturing, electronic components, guided missile and space parts, search and navigation equipment, measuring and control instruments, surgical instruments, computer programming, motion pictures, engineering, and research/ development/testing services. Usually, high-tech positions pay better than the norm. In 2000, workers as a whole in Montgomery County had an average annual wage of $43,882, while workers in pharmaceuticals averaged $101,596, those in computer and office equipment averaged $87,004, and those in communications equipment averaged $109,118. Although not dominant elements of the county economy, farming and tourism add to the county s diversity. In 1997, county farms produced $29.4 million in farm products. In 2000, over $500 million was spent in the county on lodging, food, beverages, and entertainment. Of 25,800 establishments in Montgomery County in 2000, most (nearly 97%!) had fewer than 100 employees. This is similar to the United States norm, although the nation as a whole actually had a slightly higher percentage of establishments with fewer than 100 employees. Top Ten. Montgomery County s 10 largest private employers in 2002, ranked by number of employees located in Montgomery County, are some of the most respected companies in the nation: -- Merck & Co., Inc. -- Prudential Insurance -- Aetna/US Healthcare, Inc. -- GlaxoSmithKline -- Abington Memorial Hospital 10

21 Economic Diversity -- Main Line Health -- Unisys Corporation -- United Parcel Services, Inc. -- Genuardi Family Markets (Safeway) -- Lockheed Martin Corporation Source: Montgomery County Industrial Development Corporation web page, Because of its extensive highway network, Montgomery County has a large variety of employment centers, ranging from King of Prussia, with over 55,000 employees and major employers like the mall and Lockheed Martin, to Harleysville, with nearly 7,000 employees. After King of Prussia, the next four largest employment centers are the Lansdale area, Blue Bell, Horsham, and Bala Cynwyd. Figure 5 shows the location and relative size of the county s employment centers. Economic Diversity Plan Over time, the county economy will evolve, as it has over the past 30 years. This evolution must continue for the economy to stay competitive with the nation and world as a whole. But, as changes occur, the county should strive to maintain a diverse economy, which provides so many more opportunities than an economy based on one or two key industries. Montgomery County doesn t want to put all its eggs in one basket, only to see that basket fiberoptics for example shrink or disappear. The county wants the high tech, research, finance, health, insurance, services, manufacturing, retail, agriculture, entertainment, and other industries to grow and prosper, with all these varied types of economic activity adding to future diversity. Figure 5 MAJOR EMPLOYMENT CENTERS IN MONTGOMERY COUNTY Hatfield Pottstown Royersford Souderton/ Telford Harleysville Upper Providence Source: 1999 County Business Patterns zip code data. LANSDALE AREA Valley Forge BLUE BELL Norristown KING OF PRUSSIA HORSHAM Ambler Ft. Washington Hatboro Huntington Valley Willow Grove Abington Glenside Plymouth Meeting Conshohocken Bryn Mawr Ardmore BALA CYNWYD Wynnewood Jenkintown 11

22 Chapter Two Support for the High-Tech and Service Industries To support a diverse economy, Montgomery County economic development agencies have assisted many different companies with loans, tax exempt financing, and other tools. Two recent efforts are highlighted below. LCR Electronics LCR Electronics is located on the border of West Norriton Township and Norristown Borough. The company designs, develops, and manufactures electro magnetic interference filters and compression devices for military and commercial applications. The proceeds of a $1,092,000 tax-exempt revenue note were used to acquire and renovate a 49,500 square foot building. The tax-exempt financing was used in combination with a $430,500 loan through the Pennsylvania Industrial Development Authority, a $200,000 loan through the Development Corporation, and a $50,000 loan from the county Industrial Development Authority. Fifty jobs were preserved and ten new jobs were created. Aeromed Inc. Aeromed, Inc. is a manufacturer of various medical equipment and devices. The company used a $100,000 SBFF loan for new equipment to expand their business into the high-tech medical field. Twenty-five jobs will be preserved and five new jobs are expected to be created as a result of the financing. The following actions will help office-oriented businesses grow, including the high tech, research, finance, health, insurance, and services sectors: Providing a wide range of locations for future office and research buildings in developed areas or designated growth areas, including large and small sites, greenfield and brownfield sites, and urban and suburban sites. Offices of various sizes should be encouraged to locate in employment centers around the county that are near highway interchanges or train stations. Marketing the county s strengths, which include its location, accessibility, quality of life, education, financial strength, skilled workforce, and strong economy. These strengths are described in more detail in Chapter 3, Business Attraction and Retention. Working with colleges and schools to provide the necessary training for these businesses, including high-tech businesses. Training needs are discussed in detail in Chapter 5, Workforce Training. Improving the quality of life in the county and providing amenities, such as appealing downtown entertainment areas, that will attract young, highly-educated workers and retain existing knowledge workers. The whole comprehensive plan, Shaping Our Future, is intended to improve the county s quality of life. Chapter 3 discusses specific quality of life issues that are critical for attracting younger, educated workers. Supporting efforts to improve the Philadelphia region s ability to attract and incubate new high tech businesses. Chapter 4, Business Climate, discusses these issues in detail. Encouraging smaller companies that might eventually turn into significant employers. Many high-tech and service companies start small and stay small; however, a few will grow dramatically, providing many higher-paying jobs. The following actions will help maintain strong manufacturing and wholesale sectors, which often provide good wages for workers who do not have college degrees or advanced education: Providing suitable land for industrial businesses. 12

23 Economic Diversity Because industrial uses typically have large onestory buildings, this land should consist of flat properties with large areas of buildable land. Because of freight needs, this land should be close to the interstate highway system or another limited-access highway. Since the cost of land at interchanges can be very high, industrial development might not always be directly at an interchange; however, it should be located as close as possible, with no residential development between it and the interchange. Similar land should also be provided near freight railroad lines for those industrial enterprises using trains to carry freight. Improving the highway system so trucks are not overly delayed by congestion. Working with technical schools to provide skilled workers, such as craft workers, machinists, and electricians. Continuing to participate with the state on programs designed to maintain the industrial sector. There are many state loan, grant, and training programs available, and many of these, such as the Pennsylvania Industrial Development Authority loans or the Machinery and Equipment Loan Fund, are targeted at the manufacturing sector. The following actions will help maintain the county s major regional shopping destinations as well as the county s local retail locations: Strengthening the county s four regional shopping destinations of King of Prussia, Plymouth Meeting, Montgomeryville, and Willow Grove as the places where people go to shop. Chapter 9, Shopping Center Redevelopment, demonstrates that these four areas, along with malls in neighboring counties, should be able to meet the county s and nearby areas regional shopping needs to Allowing a limited expansion of the retail square footage in these regional centers to accommodate new retailers and changes in retail strategy. Encouraging entertainment uses to locate and expand in these major shopping destinations, thereby strengthening the draw of these areas. Improving both automobile and public transit access to the four regional shopping areas. Support for Manufacturing and Retail Businesses County economic development efforts also assist manufacturing and retail businesses. Lonza, Inc. Lonza manufactures fine and specialty chemicals for sale to pharmaceutical companies. The company used the proceeds of a $23,000,000 tax-exempt revenue bond issue to acquire solid waste and wastewater treatment equipment. Lonza was expected to create sixtysix new jobs over a three year period while retaining one hundred and seventy-six jobs at the site. Deck the Walls Deck the Walls is located in the King of Prussia Mall. The company sells pictures and framing services. A $40,000 micro-loan funded the business purchase and working capital. 13

24 Chapter Two Providing new retail development in other parts of the county that is needed to meet local neighborhood and community level shopping. Chapter 9 analyzes retail needs around the county in more detail. The following actions will help retain the county s rapidly diminishing farming economy, although the nature of farming in the county may change significantly by 2025: Permanently preserving important agricultural land. Once this land is developed, it is most likely gone forever. Generally, farmland preservation is done through the purchase of the farm s development rights, which then precludes suburban development. Adopting zoning that is compatible with agriculture. This zoning should permit agricultural uses while not overly restricting farming operations. It should also allow farm stands that sell products produced on the property. True agricultural zoning, where housing densities might be one home per 20 acres, is the most effective zoning method for preserving farmland. With this zoning, lots are large enough to support a small farm, while residential development and the conflicts it brings is limited. Communities in the northwestern portion of the county would be viable locations for this zoning, although this type of zoning has not traditionally been used in Montgomery County, unlike Chester, Lancaster, and York Counties. Transfer of development rights zoning, which transfers development from one part of a community to another, is a tool that can be used to preserve agricultural land when agricultural areas are designated as places that can sell development rights in exchange for permanent preservation. Cluster zoning, where homes are clustered on a portion of a site while the majority is kept as open space, is another tool that can help preserve agriculture. This zoning allows open space within the cluster development to act as a 14

25 Economic Diversity buffer between homes in the development and nearby farmland. In some cases, this open space can even be used for farming operations. In Chester County, there is a development where the open space is used for an apple orchard. In Montgomery County, Lower Salford and Upper Frederick are two examples of communities with cluster ordinances. Zoning can also be written to allow agriculturalrelated uses that are not normally on farms, such as lumber mills or animal processing. These uses must be set back a considerable distance from abutting residential properties. Ordinances can also allow alternative uses in farm buildings, such as offices, retail operations, machine shops, and contractor s yards. Upper Hanover has an ordinance that allows nonagricultural uses in farm buildings on Zoning for Agriculture Local communities can proactively try to protect farmland 20-acre or larger farms. Preserving land alone will not preserve farming. Farming operations also need to be preserved. The following actions will help accomplish this: - Encouraging farmers to join agricultural security areas, which will protect their farms from nuisance ordinances, limit the ability of government to take the property, and allow them to apply to the state farmland preservation program. - Encouraging farmers to take advantage of Act 319, which provides a preferential tax assessment. - Allowing and supporting farmer s markets. In 2001 and 2002, new farmer s markets opened in Telford, Skippack, and Norristown, adding to the markets already in Pottstown, Ardmore, and Gilbertsville. Farmer s markets could also exist in other parts of the county, including the east. through their zoning ordinances. One method is a transfer of development rights (TDR) program. These programs allow farmers to sell their right to develop to developers who are building in a different part of the community. When farmers do this, they are no longer allowed to develop their land, which must remain rural and open. with normal development rural area growth area Sample Township with TDR program rural area growth area development of the rural part of the township is transferred to the growth area 15

26 Chapter Two Support for Farming Neil and Laurie Anders Mr. and Mrs. Neil Anders participated in the Commonwealth s Next Generation Farmer Loan Program through the Montgomery County Industrial Development Authority. The couple purchased an 86- acre dairy farm in Franconia Township, which was financed in part by a tax-exempt loan. - Allowing roadside stands for farmers to sell products produced on the property. - Encouraging farm related businesses to stay in the county by keeping farms and farmers in the county. These include food processors, farm equipment dealers, custom operators, artificial breeders, feed and fertilizer dealers, veterinarians for large animals, agricultural lenders and realtors, and other related specialized professions. - Helping farmers explore alternative products and approaches. Traditionally, much of the county s farming has involved animal husbandry and feed crops, including dairy cows, beef cattle, poultry, and pigs. Alternative products include fruits, vegetables, flowers, nursery stock, pumpkins, Christmas trees, and other animals. A farmer in Franconia, for example, raises buffalo, which are supposed to be leaner than beef cattle. High-end restaurants in the city are often looking for unique products to serve their clientele. Alternative approaches include organic farming and free-range animal raising. In Franconia, a farmer raises free range chickens. Another alternative is pick-your-own fruits and vegetables, which a farm in New Hanover does, or entertainment farm operations, which might offer hayrides and other entertainment while customers pick out their products. For example, a farm in Upper Providence offers apples, cider, pumpkins, and Christmas trees, along with hayrides, animal viewing, and a train set. An alternative economic model is Community Supported Agriculture (CSA), where the customers buy a share of the farm production at the beginning of the season, sharing in the bounty in good years or lower crop yields in bad years. The first CSA in Montgomery County recently began in Horsham Township. - Reducing the number of nuisance ordinances that apply to farms. - Encouraging the state to enact tax reform that will reduce the real estate tax burden on farmers. The following actions will strengthen and expand the county s tourism and entertainment 16

27 Economic Diversity industries: Revitalizing older downtown and Main Street areas with restaurants, specialty retailers, theaters, and other entertainment uses. These entertainment related uses are ideal uses for downtown areas. Expanding restaurant, theater, leisure sport, and other entertainment uses near malls, which are already some of the leading tourist destinations in the county. Marketing and promoting the existing county tourist attractions to the region and beyond. These include parks, like Valley Forge National Historical Park, Evansburg State Park, Fort Washington State Park, the County Farm Park, Green Lane Park, and local parks. They also include trails, particularly the Schuylkill River Trail and the Perkiomen Trail. They include sports and leisure facilities, like the county s over 50 golf courses and country clubs and the Spring Mount Ski Area. They include movie theaters and live theaters, such as the Montgomery Theater in Souderton, the Keswick Theater, and the Montgomery County Cultural Center. They include many historic sites, such as Pennypacker Mills and Peter Wentz Farmstead. They include museums, gardens, and zoos, such as the Barnes Foundation, and Elmwood Park Zoo. They also include special events, such as the Goschenhoppen Festival or the Philadelphia Folk Festival. The recently created Montgomery County golf tournament is a good example of marketing and promotion, giving a higher profile to the county s golf courses and country clubs. Establishing more significant tourist attractions in the county, particularly in the Montgomery Crossroads area, perhaps along the Schuylkill River. Over the past 30 years, the county has lost some of its entertainment destinations including all of the county s amusement parks. Possible significant destinations could include professional sports facilities, amusement parks, museums, festival marketplaces, entertainment centers, and other venues. Supporting arts groups and artists, particularly in revitalizing areas. Taking advantage of the Schuylkill River as a Support for Entertainment County programs have also provided support for restaurants, one of the most important entertainment uses in the county. Boathouse, Inc. The Boathouse is a popular restaurant located in Conshohocken. When the owner needed to expand and renovate the facility he came to the Montgomery County Development Corporation for a $75,000 loan. The project was expected to result in eight new jobs and twenty retained jobs. 17

28 Chapter Two natural, cultural, and historic resource that links much of Southeastern Pennsylvania. A variety of policies, ranging from tourism promotion to trail development, will reinforce this area as a destination. In fact, the Schuylkill River Valley has been designated a National Heritage Area. The county s Schuylkill River Greenway Stewardship Study, adopted in 2001, explains in detail many of the policies that can be used to make the Schuylkill River a more recognized asset for the county. Expanding the county trail system, as outlined in the Open Space Plan. The Schuylkill River Trail and Perkiomen Trail are used extensively, capitalizing on interest in walking, bicycling, and rollerblading. Preserving open space, cultural resources, and historic areas. Individually, all of these resources can serve as tourist attractions. As a group, however, these resources have much more of an impact, creating an attractive environment for tourists while offering many alternative destinations for visitors. Making the county an attractive place. Tourists and people visiting entertainment sites prefer to see beautiful and scenic towns and countryside. In a working place like Montgomery County, this cannot always be provided, but communities should always strive to improve their appeal. This can be done by redeveloping brownfield sites, revitalizing downtown areas, rehabilitating housing, retrofitting existing strip commercial areas, upgrading shopping centers, requiring extensive landscaping, improving signage, preserving open space, preserving farms, adding decorative streetscapes to Main Street areas, matching road improvements to the character of an area, screening obnoxious uses, landscaping detention basins, reducing the visibility of parking lots and garages, and a variety of other actions. Economic diversity is not only measured by type of business. It is also measured by the size of businesses. In fact, small and mid-sized companies, particularly those with less than 100 employees, provide most of the employment in the county and most of the job growth. Some of these may grow into major employers. The county wants to keep businesses that are 18

29 Economic Diversity small, medium, and large in size, encouraging the symbiotic relationship these businesses have with each other. Because of their relatively small number, large businesses are easier to track than small and medium-sized companies. The state and county should periodically contact these businesses, through programs like the Pennsylvania Business Retension and Expansion Program, which is operated by MCIDC, to discern potential needs that can be addressed by the government. When issues arise, the county, working with the state, will try to address these as much as possible, which might include potential loans, grants, road improvements, transit access, workforce training, etc. For example, the state and local economic development groups proactively addressed transportation concerns at Lockheed Martin in King of Prussia by building a new bridge over Route 76. Small and mid-sized companies can also be supported through a wide range of actions, including grants, loans, and technical support. The three Small Business Development Centers serving the county, located at the University of Pennsylvania, Temple University, and Lehigh University, provide a number of technical support services for small businesses. Incubators can also support small businesses that are just starting up. Incubators are places where a number of small companies, often high-tech ones, share services like administrative staff and photocopy machines while receiving technical advice and support. The Ben Franklin Technology Partners Program, a nonprofit economic development agency supported by the state, sometimes helps with incubators. Often, older industrial buildings can be used for incubators, provided local codes provide flexibility for this use. In addition, suitable land should be provided for flex space, which can be used for a wide range of uses, including offices, storage, and light industrial operations, or even a combination of all three. This type of space is ideal for small growing companies that do not easily fit into an office building or industrial park with large buildings. Support for Small Businesses Much of the county s job growth is generated by small businesses. The county s micro-loan program and small business consulting service are designed to help small businesses start up and grow. Micro-loans, which range from $5,000 to $30,000, are available to retail and service businesses with less than one million in sales each year and manufacturers with less than $2 million in sales. The Window Box The Window Box is a retail store in Trappe Borough established by two $15,000 loans for two different female-owned businesses. Marcy Gilmartin Designs provides interior design and window treatment services. Scentimental Notions provides live and silk floral arrangements for homes and offices. 19

30 Chapter Two 20

31 Chapter 3 Business Attraction and Retention To have a strong economy, communities must be able to attract and retain businesses, particularly those that are growing and providing highpaying jobs. Because many of these growing businesses compete with other businesses around the globe for talented knowledge workers, communities need to attract these workers by providing a high quality of life. With an extensive highway network, diverse base of vibrant businesses, and large pool of skilled workers, Montgomery County is well positioned to attract and retain businesses. And, with reasonablypriced and attractive homes, good schools, and access to world-class cultural institutions in Philadelphia, Montgomery County has a high quality of life that should attract talented workers. However, these advantages could disappear in the future if, for example, the county roads become unbearably congested, or development devours the landscape, or other changes occur to drive away businesses and a skilled workforce. This chapter of the economic development plan examines ways to attract and retain businesses, first by examining existing conditions and then by outlining a business attraction and retention plan that focuses on traditional economic development efforts to help businesses and then discusses ways of maintaining a high quality of life. Existing Conditions The county s growth over the last few years demonstrates that it is able to attract businesses. For the five year time span from 1996 through 2000, the county added over 3,000 new businesses, more than any other county in the state. This represents a 13% increase over 5 years. This is much greater than the county s population increase over these five years. Montgomery County leads the state in job growth too. From 1996 through 2000, the county added over 47,000 new jobs, a nearly 11% increase over 5 years. Once again, this rate of growth is much greater than the population s growth rate. Figure 6 NEW BUSINESSES ADDED: Source: PA County Industry Trends,

32 Chapter Three Figure 7 NEW JOBS ADDED: Source: PA County Industry Trends, According to an analysis of employment trends from 1995 to 2000 conducted for the Montgomery County Workforce Investment Board, there are certain well-paying industries in the county that should be retained and hopefully will grow. This analysis defined these industries as winners, emerging, and cash cows. Each of these is described below. - Winners are industries that have had significant employment growth, are concentrated in this area, and pay relatively well. In Montgomery County, the largest winner, by far, was pharmaceutical preparations. Other winners with over 1,000 employees in 2000 include casualty insurance, insurance agents and brokers, mortgage banking, management consulting, medical laboratories, mail order houses, radio and television broadcasting, business credit institutions, physical and biological research, information retrieval services, savings institutions, masonry businesses, medical equipment sales, and computer and computer software stores. - Emerging industries are ones that have had significant employment growth and pay relatively well, but are not concentrated in this area. Emerging industries with over 500 employees in Montgomery County include local trucking, drywall and insulation businesses, semiconductor manufacturing, roofing and sheet metal work, and computer integrated systems design. - Cash cows are industries that are concentrated in the area and pay relatively well, but saw employment decline from 1995 to These industries may have been strong in the county traditionally with recent weakness. Cash cows with over 1,000 employees in Montgomery County include life insurance, guided missile and space vehicle parts, electronic computers, industrial instruments for measurement, computer and computer peripheral suppliers, offices and clinics of health practitioners, engine electrical equipment manufacturing, office equipment suppliers, plastic materials manufacturing, industrial and commercial machinery manufacturing, and periodical publishing. The country s new economy, with its emphasis 22

33 Business Attraction and Retention on knowledge industries, has been called the Age of Talent. Many of the fastest growing industries with the best pay depend primarily on talented and educated workers instead of proximity to customer bases or production resource bases. Many locations around America have tried to support and attract these high-tech and knowledge businesses. Some places have been more successful than others. Traditional location variables, like transportation access, proximity to suppliers and markets, and public investment are important but not critical for high-tech inception, growth, or fortification. Instead, for getting hightech started, the presence of research institutes, cost factors, and tax incentives are most critical, according to a 1999 Milken Institute study. To help high-tech industries grow, the presence of research institutes remains critical, while a skilled or educated labor force, retraining, and establishment of trade groups also become critical. Figure 8 summarizes the importance of various factors for high-tech success. Studies by Richard Florida and others at Carnegie Mellon University have demonstrated that quality-of-place is extremely important for high-tech industries and the labor they need. High-tech workers often want a variety of cultural, recreation, and employment opportunities and are found in regions that are diverse and open minded. Figure 8 FACTORS AFFECTING HIGH TECH LOCATIONS ACCORDING TO THE MILKEN INSTITUTE Inception Growth Fortification Public Policy Tax Incentives Critical Important Public Investment Important Very Important Commercialization of Ideas Important Very Important Very Important Comparative Location Benchmarking Cost Factors Critical Research Institutions Critical Critical Critical Skilled or Educated Labor Force Very Important Critical Critical Transportation Center Important Proximity to Supplies and Markets Very Important Important Important Social Infrastructure Developments Attending Changing Needs Very Important Critical Re-education and Training Facilities Critical Important Establishing Trade Groups and Affiliations Critical Critical Housing, Zoning, and Quality of Life Very Important Very Important Critical 23

34 Chapter Three Retaining businesses is critical for Montgomery County. Retaining businesses is critical, particularly in Montgomery County, which already has a strong and prosperous economy. Although it is impossible to know what is on the minds of leaders of the county s 26,000 establishments, a variety of surveys provide a glimpse of local business concerns. The Team Pennsylvania Calling Program, which is run by the state, contacts businesses to gain a better understanding of their perspectives and concerns. A survey of 973 businesses from 1997 to 1999 found that local companies want to stay in the area, with 76% reporting they would prefer to expand on the same site or locally. This is partially due to the fact that 42% buy their primary products and services from other Pennsylvania firms. Many of these employers were concerned about their ability to find qualified workers, and most also felt that their workforce needed special skills training. For local services, the surveyed companies were most satisfied with public water, public sewers, and telecommunications. They were least satisfied with the local road system. Recognizing businesses workforce concerns, the Montgomery County Workforce Investment Board and Industrial Development Corporation jointly sponsored a survey that was completed by approximately 200 companies. This survey found that nearly 77% of the respondents experienced either serious or moderate worker shortages. It should be noted that this occurred at the height of the labor shortage and the problem has moderated since the survey was done. However, shortages will most likely occur again as the nation s labor supply tightens over the upcoming decades with the aging of the baby boomers. The Delaware Valley Regional Planning Commission has also surveyed local industry. One major concern for surveyed businesses in the Pennsylvania suburbs was traffic congestion and the need to increase highway capacity. Business Attraction and Retention Plan Every individual business will decide where to locate or where to remain based on a wide range of unique factors. Many of these factors, such as the 24

35 Business Attraction and Retention home address of the CEO or the financial strength of the company, are not influenced by government actions. Other factors, however, can be influenced. Some government actions directly influence business decisions, such as tax policies, subsidies, zoning, and highway construction. Other actions, such as quality of life or the educational system, have a subtler affect on businesses but can nevertheless influence their location decisions. All of the other chapters of this economic development plan describe actions that will help business attraction and retention. These include economic diversity, the business climate, workforce training, workforce availability, downtown revitalization, industrial land redevelopment, and shopping center redevelopment. There are other actions specifically related to business attraction and retention. These actions include. Economic development agencies, businesses, the press, and others should market the advantages of Montgomery County. These include: - Geographic location: The county is strategically located on the eastern seaboard with easy access to other major metropolitan areas. It is within a 500-mile radius of 40% of the U.S. population, 45% of the nation s total manufacturers, and 40% of the nation s service industries. Regionally, the county is directly northwest of Philadelphia, which has an international airport, port facilities, world-class cultural facilities, professional sports teams, historic landmarks, research universities, and high-end retail areas. - Accessibility: Most of the major highways in the Philadelphia region intersect in Montgomery County, including the Pennsylvania Turnpike, Route I-76, Route I-476, and US Route 202. The county also has an extensive public transportation system that includes a number of regional rail lines. - Quality of life: With its healthy mixture of employment centers, retail hubs, attractive residential areas, parks, trails, colleges, health care facilities, fine educational system, and proximity to Philadelphia, Montgomery County offers a high quality of life. Action Duplication, Inc., which produces video duplication products and manufactures compact disks, is one of many high-tech companies in Montgomery County. Figure 9 REGIONAL POSITION Montgomery County has easy access to the regional road system. 25

36 Chapter Three This mixture gives residents and businesspeople a wide range of areas to locate, from safe urban towns to new suburbs to quaint rural areas. - Education: The county has a very impressive list of public, private, and parochial schools offering excellent educational opportunities for young people. In addition, there are 23 colleges and universities in the county offering degrees in virtually every conceivable course of study. - Financial Strength: The county s AAA bond rating demonstrates how financially strong and well managed it is. In fact, Montgomery County is one of only a handful of counties in the whole country that has this rating. In addition, the county s municipalities as a whole are financially strong. With a median household income in 1999 of $60,829 and per capita income of $30,898, county residents are also prosperous. Compared with other counties in the nation, Montgomery County had the 63rd highest median household income. - Labor Force Skills: The county has a skilled and diversified labor force with approximately 400,000 resident workers. - Economic Strength and Stability: As outlined in Chapter 2, Economic Diversity, Montgomery County has a stable, diverse, and growing economy that provides a range of opportunities for workers, businessmen, entrepreneurs, and investors. Montgomery County is strongly affected by Philadelphia and its image. Efforts to improve the city s image on the national level will help Montgomery County. Despite its many strengths, Montgomery County does not sit alone, untouched by others. It is inextricably linked to Philadelphia and the metropolitan region as a whole. A strong and growing Philadelphia is not only good for the city but is also good for the region and Montgomery County. Recognizing the interdependency of the region and the importance of marketing the region as a whole, Montgomery County in cooperation with the state and its neighbors, including the City of Philadelphia, will continue to address common concerns and to bring new businesses, talented labor, and young people to the region. 26

37 Business Attraction and Retention On the state level, the county will continue to work with the Governor and state economic development agencies to encourage existing businesses to expand and new businesses to relocate to this area. The county will also work closely with statewide nonprofits, like the Team Pennsylvania Foundation, to encourage new and expanded businesses. On the regional level, Montgomery County will continue cooperating extensively with the many organizations improving the local economy, such as the Greater Philadelphia Chamber of Commerce. At the county level, the Department of Economic and Workforce Development and Redevelopment Authority will continue to foster economic growth, with support from the Planning Commission and Housing and Community Development. The non-profit Montgomery County Industrial Development Corporation will remain the premier agency involved with business attraction, helping businesses find suitable sites, appropriate services, and current information. These four county agencies and one non-profit agency, along with local chambers of commerce and municipal industrial development authorities, will work cooperatively to help expanding and relocating businesses get the information they need as quickly and easily as possible. Existing databases of vacant and developable properties that are already maintained by these agencies will be coordinated and updated as a group. Business Attraction and Retention Success Story To attract General Instrument Corporation (now Motorola) to the county, the county, Horsham Township, and the state, in cooperation with the Montgomery County Industrial Development Corporation, agreed to make a variety of road improvements to Keith Valley Road, Horsham Road, and Easton Road. Motorola now employs approximately 1,400 people in the county. New offices in Horsham Township depended on road improvements arranged by various economic development agencies. Local municipalities can use industrial development authorities, tax increment financing, community development corporations, and other tools to retain and attract businesses. Quality of life! To attract high-tech and knowledge workers with dynamic businesses and imaginative ideas, Montgomery County must maintain and improve its quality of life. In essence, the whole county comprehensive plan describes how quality of life can be maintained and improved by: - Supporting a diverse and dynamic economy that can provide a variety of well-paying jobs, 27

38 Chapter Three Active and vibrant main street areas, like this example from Narberth Borough, help the county s quality of life. Outdoor recreational opportunities, like these found on the Schuylkill Trail, are particularly important for attracting younger educated workers. including high-tech and knowledge industry positions. - Developing attractive, convenient, and diverse retail, office, and housing areas. For highly-educated workers who can choose a variety of locations, the appearance and character of an area become more important, as different regions compete with each other for these employees. - Improving transportation. No one wants to be stuck in traffic or limited to one means of getting to work. - Providing attractive housing at a decent price. Though not cheap, Montgomery County s housing and the region s housing is less expensive than other major metropolitan areas trying to expand their high-tech sectors. - Maintaining the county s fine schools and colleges, as well as other educational institutions that provide lifelong learning opportunities. - Preserving open space, farmland, the county s cultural heritage, downtown areas, attractive rural features, and other indefinable characteristics of the county that add to the quality of life. - Creating entertainment centers with restaurants, theaters, and other amusement venues, concentrating on older downtown areas and locations near malls. - Expanding outdoor recreational opportunities including the county s trail system. 28

39 Chapter 4 Business Climate In the mixed American economy, businesses and government have a symbiotic relationship businesses need government to provide a legal framework and important public facilities and services, like roads and education, while government needs businesses to provide jobs and tax revenues. Each is dependent on the other, but at the local level the two often do not interact and communicate as much as they should. Even with little interaction, government actions and policies, when taken as a whole, strongly affect business and create an overall climate, which can be negative or positive. Generally, Montgomery County has a reputation as a good place to do business. However, history is full of examples of other places where business once was thriving but now struggles. Montgomery County wants to avoid this fate, and one way to do this is to maintain the good business climate that currently exists. This chapter of the economic development plan examines ways to maintain and create a good business climate, first by examining existing conditions and then by outlining a business climate plan. Existing Conditions The picture of Montgomery County s business climate is good but can be viewed in different ways, depending on the vantage point. Within the Philadelphia region, the business community views Montgomery County very positively. The Montgomery Crossroads area, with King of Prussia, Conshohocken, and Plymouth Meeting, is the premier business address in the Philadelphia suburbs. Nationally, however, the Philadelphia region and Pennsylvania are not known as great places to do business. This regional image may have slowed growth in Montgomery County and the suburbs in general, as the economic performance of suburbs is linked to the performance of the central city. In fact, Philadelphia s suburbs ranked 32 nd out of 41 large-city suburbs in job growth between 1991 and 1997, according to a Federal Reserve Bank report card on the Philadelphia region. A number of factors have contributed to the region s slower growth, and many of these are related to the business environment. Demographically, population growth has been slow, with many 29

40 Chapter Four H.P. Cadwallader, Inc., a manufacturer of corrugated cardboard boxes, recently expanded its operations in Montgomery County. Alcom Printing, a manufacturer of lithographic commercial printing materials, relocated operations to Montgomery County. locals migrating elsewhere and limited international migration into the area. From a business perspective, labor costs have been relatively high while the proportion of college-educated workers is relatively low, perhaps because the region is not viewed as a high-quality of life area. Historically, energy costs have been high, venture capital has been low, regional cooperation has been limited, and taxes in Philadelphia have been burdensome. Recently, many of these drags on the region s business climate have improved. With deregulation, energy costs have come down. Venture capital picked up substantially in the nineteen-nineties, particularly in biotechnology and pharmaceuticals, but, following national trends, has become less available recently. Philadelphia taxes have declined slightly. And major efforts are being made to keep recent college graduates in the area. There are many government agencies and nonprofit groups working on these issues and trying to improve economic development, the business climate, and communication. Many of these are described below or listed in the Appendix. The Governor s Action Team, which reports directly to the governor, works with businesses making significant investments in the commonwealth. This team, which is part of the Department of Community and Economic Development coordinates site and building searches, assists businesses relocating or expanding in the state, provides assistance with permits and regulations, and identifies potential grants and tax credits. The Pennsylvania Business Retention and Expansion Program is designed to increase communication between government and businesses. Under this program, individual businesses are contacted and interviewed to determine their needs and concerns. These interviews ask questions on ISO certification, sales projections, government contract work, exports, electronic commerce, freight transportation, machinery and equipment needs, production challenges, technology challenges, location, provision of utilities, zoning, and transportation needs. Regionally, there are many nongovernmental organizations, such as trade groups, foundations, and economic development nonprofits, that work to improve communication and understanding 30

41 Business Climate between the public and private sectors. The PENJERDEL Council, for example, works with chambers of commerce and government officials to resolve problems affecting the economy and quality of life in the Delaware Valley. Other nonprofits act as think tanks, searching for policies that will improve the area. Many newer nonprofits are oriented towards the high-tech sector, such as Innovation Philadelphia and the Biotechnology Greenhouse Corporation of Southeastern Pennsylvania. In Montgomery County, the Department of Economic and Workforce Development provides many services to businesses and is constantly trying to improve communication between the private sector and the county. The Montgomery County Industrial Development Corporation, a nonprofit, has partnerships with a variety of state and county agencies and helps local businesses understand the programs and regulations of these agencies. At the local level, chambers of commerce are probably the most prominent organizations involved in this endeavor. Montgomery County has 15 different chambers, as listed in Figure 10, that cover most of the county. In addition, the Greater Philadelphia Chamber of Commerce includes many Montgomery County businesses. Also, there are local trade associations, business groups, and office park associations that frequently become involved in local economic development efforts. Business Climate Plan Recognizing the importance of a growing economy, Montgomery County will strive to keep a good business climate, while cooperating with the state, neighboring communities, and local nonprofits in improving the region s business environment. Montgomery County welcomes new, expanding, and existing businesses that provide or will provide well-paying and rewarding jobs. These businesses should locate in a development center, redeveloping area, or designated growth area identified in the Vision Plan. Through its various departments and authorities Improving the Business Climate The Pennsylvania Business Retention and Expansion Program The Pennsylvania Business Retention and Expansion Program has helped Pennsylvania improve its business climate, showing local businesses that the government has helpful services. One local success story is Judson Technologies, a company that specializes in microelectronic productions, including manufacturing infrared detectors and fiber optic components. During a program site visit, company officials expressed concerns about exporting to foreign countries, improving manufacturing processes, and establishing a technology partnership. The program team then helped Judson Technologies get assistance from the Federal Export Administration and Trade Information Center. For manufacturing assistance, the Delaware Valley Industrial Resource Center identified a method for reducing nonvalue added activity and provided a proposal to perform a Value Stream Mapping program and Lean Manufacturing training. For developing a technology partnership, Judson Technologies was contacted by representatives of the Ben Franklin Technology Partners and the National Microelectronics Training Center in Bethlehem. 31

42 Chapter Four Figure 10 CHAMBERS OF COMMERCE IN MONTGOMERY COUNTY Chamber Name Eastern Montgomery County Greater Glenside Greater Hatboro Greater Willow Grove Hatfield Horsham Indian Valley King of Prussia Main Line Montco North Penn Perkiomen Valley Spring-ford Tri-County Area Upper Perkiomen Valley Office Location Jenkintown Glenside Hatboro Willow Grove Hatfield Horsham Telford King of Prussia Wayne Norristown Lansdale Collegeville Royersford Pottstown Pennsburg The service areas of Chambers of Commerce in Montgomery County generally cover municipalities near their office locations. In many cases, these service areas overlap. and in cooperation with the MCIDC, Montgomery County will enhance communication between business and government by: - Continuing to participate in the Pennsylvania Business Retention and Expansion Program. - Expanding other contacts with local businesses, while letting these businesses know about the many services that are available. - Working cooperatively with chambers of commerce around the county on a variety of issues, such as regional planning, marketing of vacant industrial sites, economic development, transportation improvements, and affordable housing. Businesses need appropriate sites to locate. A place that does not allow any new nonresidential development does not have a good business climate. The county recognizes this need and supports continued moderate growth. The Land Use Plan portion of this Comprehensive Plan identifies many locations for new nonresidential construction, whether this construction is in brownfields, older downtown areas, or greenfield sites within designated growth areas. All of the sites shown on this plan should have adequate utilities and good access to the region s highway or public transportation network. Related to the issue of available land is the process of land development. With so many small governments and myriad rules, the development process can be very slow, confusing, and expensive. Following new regulations in the Municipalities Planning Code and working with the county s 62 individual municipalities, Montgomery County will publish guidelines promoting uniformity of local planning and zoning terminology, as well as common types of municipal land use regulations. In addition, the county will help local municipalities explore methods of creating common permit procedures and one-stop permit processes. The county, its municipalities, and school districts will continue to offer government services in an efficient manner, constantly looking at ways to improve results and keep taxes down for businesses as well as residents. 32

43 Business Climate The business climate in the Philadelphia region must continue to improve. Montgomery County recognizes the importance of Philadelphia s image on economic growth. The county will cooperate with other counties in the region as well as universities, nonprofits, and businesses to improve this business environment and image. Possible actions these organizations might take include: - Emphasizing the region as a biotechnology and high-tech hub. This would be done in cooperation with Biotechnology Greenhouse Corporation of Southeastern Pennsylvania, the Eastern Technology Council, the Pennsylvania Biotechnology Association, and other similar organizations. - Fostering a welcoming atmosphere for entrepreneurs, inventors, scientists, and others who can create a humming hightech economy and convey the region s benefits to others. - Helping make Pennsylvania s business taxes more competitive nationally. - Working with local and national venture capital firms to bring more investment to the region. - Encouraging area universities to expand research and bring discoveries to market. - Presenting a unified and positive regional voice to national businesses and investors. 33

44 Chapter Four 34

45 Chapter 5 Workforce Training In today s economy, workers and the skills they bring are more important than ever, especially for higher-paying jobs. The national economy no longer revolves around natural resources and market location; instead, it often depends on people what they can do, what creative ideas they generate, and how smart they are. Montgomery County s diverse, dynamic, and modern economy depends on the skills, education, and training of its workforce. Fortunately, the county s resident workforce is well-educated and highly-skilled, and has improved over time. However, the county cannot become complacent about its relatively strong workforce and must work constantly to improve workforce skills while meeting the everchanging needs of local businesses and industry. This chapter of the economic development plan examines ways to maintain a well-trained and skilled workforce, first by examining existing conditions and then by outlining a workforce training plan. Existing Conditions Montgomery County s resident workforce has become more white-collar and educated over time. In 2000, nearly three quarters of the county s resident workforce had white collar occupations, compared to less than half in Many of the occupations that have grown over the past few decades depend on highly-educated workers. Not surprisingly, the county s resident workforce has become significantly more educated over time, with nearly 90% of the county resident workforce having a high school degree or higher and nearly 40% having a college degree or higher. These ratios are much greater than the U.S. levels, where 80% have a high school degree or higher and only 24% have a college degree or higher. In Pennsylvania, only 22% of the resident workforce has a college degree or higher. Figure 11 OCCUPATION STATUS OF RESIDENT LABOR FORCE FOR MONTGOMERY COUNTY Source: 1950 and 2000 U.S. Censuses. Survey Results Government agencies, local schools, and economic development nonprofits are not automatically aware of the workforce needs of local 35

46 Chapter Five Figure 12 EDUCATIONAL ATTAINMENT OF RESIDENT WORKFORCE - MONTGOMERY COUNTY Percent of Resident Workforce with High School Degree or Higher 42.3% 51.6% 63.2% 75.8% 83.8% 88.5% Percent of Resident Workforce with a College Degree or Higher 10.7% 13.6% 17.3% 24.9% 32.1% 38.7% Source: U.S. Census. Figure 13 SHORTAGES BY KEY POSITIONS - EMPLOYERS RESPONSES TO 2001 SURVEY Position Percent Reporting Shortages Craft Workers 81.0% Machinists 80.0% Technicians/Electricians 76.3% Certified Nursing Assistants 75.0% Operators 74.4% Scientific/R & D Employees 64.8% Entry Level Production Employees 62.6% Customer Service Representatives 54.3% Engineers 53.8% Registered Nurses 53.4% Sales/Marketing Professionals 51.7% IT Professionals 42.2% Plant Managers 40.3% Computer Programmers 39.1% IT Technicians 38.7% businesses. To fill in this missing information, the Montgomery County Industrial Development Corporation and Montgomery County Workforce Investment Board sponsored a survey in 2001 that was sent to 1,500 companies. Some of the results from the 200 responses are summarized below: In 2001, there was a pronounced labor shortage in the county, with 77% of respondents reporting serious or moderate shortages. Since that time, the problem has moderated. Businesses experienced the worst shortages with craft workers, machinists, and technicians/ electricians. Figure 13 lists other key positions with shortages. Because of worker shortages in 2000 and 2001, many employers tapped nontraditional sources of employees, such as high school students, retired workers, immigrants, people moving from welfare to work, high school dropouts, and former offenders. Over half of survey respondents spent more money on education and training needs than they had 3 years earlier, while over 40% expected to spend more in the near future. Business consortiums, equipment vendors, consultants, and technical-vocational schools did most of the training that was not done in-house. Surprisingly, 62.1% of the respondents said that local K-12 schools are not preparing students well for the workplace. In some cases, respondents may be thinking of workers from outside of Montgomery County. Nevertheless, this is a high percentage and illuminates a key concern of businesses. Areas where they felt K-12 was most deficient are shown in Figure

47 Workforce Training Figure 14 AREAS WHERE K-12 HAVE THE GREATEST DEFICIENCIES - EMPLOYERS RESPONSES TO 2001 SURVEY Educational Area Percent of Employer Responses Basic employability skills, such as attendance, timeliness, work ethic, etc. 40.1% Character building education/ personal accountability 30.2% Vocational skills 24.7% Math and science 22.5% Problem-solving 19.8% Reading and comprehension 18.1% Verbal communications 18.1% Written communications 17.0% Decision-making 12.6% Computer and technical skills 3.8% Teacher competency 2.7% County Welfare Caseloads Declined 54% From March of 1997 to December of 2001, the total number of county welfare caseloads declined 54%. Much of this decline can be attributed to the Single Point of Contact (SPOC) Program, which helps residents transition off welfare by providing intensive case management help, vocational skills training, childcare assistance, and transportation help. SPOC graduate Ruth Jalkowski works as an electrician, after receiving intensive training. Existing Workforce Training In effect, all education provides training for the workforce. Fortunately, Montgomery County has a strong education system that includes 22 school districts, 31 private and non-public schools, 4 vocational technical schools, and 23 institutions of higher learning. This includes the Montgomery County Community College, which has two campuses and is designed to meet local workforce needs with a variety of programs, including its professional associate degree programs. Much of the county s education system is highly rated, with students performing well on state or nationwide tests. For example, for the SAT test, 30% of the county s school districts were in the top 10% statewide for math scores and over 25% were in the top 10% of school districts for verbal scores, according to PA Department of Education statistics. Twenty-one school districts and area businesses have joined in partnerships through the School-to-Career network to inform teachers and students about the need for employees in growth industries. The four vocational-technical schools, in particular, have upgraded their curricula to respond to business needs while also operating a SPOC graduate Tynia Birch works at a social service agency helping mentally and physically challenged adults live and work in the community. To help prepare for the position, she achieved her GED, earned a Medical Assistant Certificate, and received her driver s license. 37

48 Chapter Five Figure 15 MAIN RESPONSIBILITIES OF THE COUNTY WORKFORCE INVESTMENT BOARD Strategic and operational planning, and policy and development. Approval of Skill Training Providers Chartering of the CareerLink Operator Approval of providers of literacy and career assessment services. Budget preparation and oversight of various funding. Design and approval of programs to assist economically disadvantaged youth. Oversight of welfare-to-work initiatives. variety of apprenticeship programs. In addition, many school districts offer continuing education and adult education programs. Basically, this education system provides the training, besides training arranged by employers, that most workers in the county need. However, some specialized skills and high-demand occupations are not adequately addressed by this education system. In addition, a small portion of the resident workforce does not have the basic life skills or work skills it will need to succeed, even for entry level and lower level positions. In other cases, skilled workers find themselves laid off and must acquire new job skills. To address these needs, there are many career and workforce related services that include 19 training providers, 9 adult literacy programs, hundreds of private sector skill training programs, numerous job placement and career counseling services, and various government related services. Within Montgomery County, government funded programs and services are overseen by the Montgomery County Workforce Investment Board (WIB). This Board also runs the Montgomery County CareerLink System, certifies training programs, and monitors training providers in the county. The main duties of the county WIB are listed in Figure 15. Workforce Training Plan Because the American economy is so dynamic and constantly changing, it is difficult for any workforce investment and training system to always anticipate industry needs. Businesses themselves often have problems predicting future workforce needs. Nevertheless, demographic and economic trends can provide a guide for workforce providers and possible changes that should be made to the system. Future Workforce Needs From a training perspective, job seekers can be divided into three broad categories: youth/ emerging workers, transitional workers (dislocated, unemployed, welfare, and special needs), and incumbent workers who are employed but may be looking for new jobs. Each of these categories is discussed below: Youth/emerging workers. Over the next 25 years, the county s population is projected to 38

49 Workforce Training increase by 107,000 people, or about 14%. A significant portion of this growth will be among younger residents in the 15 to 19 age group, which will increase 10% by 2025, and the 20 to 34 age group, which is projected to grow 24%. Transitional workers. Transitional workers include those who lack basic skills, such as reading, language, and punctuality skills, and those who have been laid off from closing or declining businesses. The number of county residents who lack essential skills will probably increase as the county becomes a more diverse place. For example: Immigration is increasing. From 1990 to 2000, the portion of the county population born abroad rose from 5% to 7% of the population, while the portion speaking a language other than English at home approached 10% of the total in 2000, according to the U.S. Census. During the nineties, Asians increased from 2.4% to 3.6% of the county population, while Hispanics increased from 1.2% to 2% of the total. In the future, these groups are expected to continue growing, and many will be immigrants who may need some specialized training, particularly language training. Families in poverty are increasing. A worrisome statistic is families in poverty with children under 18 years, which increased from 2,732 families in 1990 to 4,044 in 2000, nearly a 50% jump. Those families headed by a female and with children under 5 actually increased 237%, according to U.S. Census data. Although still a small portion of the county population, the children in these families may end up needing specialized workforce training because they will have access to fewer resources as they are growing up. Although it is impossible to know exactly which businesses will grow or shrink over the next 25 years, it is possible to look at industry trends to predict which ones will be reducing their workforces over the coming years and potentially creating unemployed workers who will need retraining. The CareerLink Center offers a variety of services to job seekers and employers. Stroehmann Bakeries has used CareerLink extensively to find qualified employees. 39

50 Chapter Five Figure DEMAND OCCUPATIONS WITH OVER 100 ANNUAL OPENINGS Occupational Title Retail Salesperson Waiters and Waitresses Cashiers Systems Analysts Office Clerks, General Telemarketers, door to door sales, and related workers General managers and top executives Food preparation workers Registered nurses Computer support specialists Computer programmers Teachers, secondary school Janitors and cleaners Secretaries, executive, legal, or medical Computer engineers Guards Office, administrative support supervisors, managers Counter attendants, lunchroom workers, cafeteria workers Nursing aides, orderlies, and attendants Laborers, landscapers, groundskeepers Sales representatives, manufacturers and wholesale Bookkeeping, accounting, auditing clerks Food preparation, service workers, fast food Truck drivers, light Child care workers Engineering, natural sciences, computer, information systems managers Teachers, elementary school Marketing, sales supervisors Reception and information clerks Bill and account collectors Number of Annual Openings Source: State Center for Workforce Information and Analysis. 200 or more 200 or more 200 or more 200 or more 200 or more 200 or more 200 or more 200 or more 200 or more 200 or more 200 or more 100 or more 100 or more 100 or more 100 or more 100 or more 100 or more 100 or more 100 or more 100 or more 100 or more 100 or more 100 or more 100 or more 100 or more 100 or more 100 or more 100 or more 100 or more 100 or more According to the State Center for Workforce Information and Analysis, there are a number of industries that will have less employment in 2008 than they do today. These include many durable manufacturers, particularly industrial machinery and fabricated metals, as well as nondurable manufacturers, particularly food products and printing firms. Surprisingly, some traditional growth industries are projected to have employment declines, including retailers, wholesalers, insurance companies, and real estate companies. Employees in all of these industries may need some type of retraining. Incumbent workers. Workers who are already employed may be looking for new jobs in their field or a new field altogether. Certain industries and occupations offer more opportunities than the norm. The following examples give an indication of where these opportunities may be in the future: Growing industries. By 2008, a number of industries are expected to grow, particularly chemical products, drugs, computer services, business services, health services, educational services, and social services. In-demand occupations. For 2002, there were eleven occupations with 200 or more annual openings in the county, according to the State Center for Workforce Information and Analysis and another 19 occupations that were expected to have between 100 and 200 openings. Figure 16 shows these occupations. In the near future, incumbent workers looking for jobs may want to consider these occupations. Recommended Actions for the Workforce Investment System All the various organizations and people involved with workforce training, including government agencies, nonprofits, schools, training centers, and businesses, should work together to address workforce needs, while considering the following actions: To make the often confusing workforce training system function better, the existing one-stop system should be strengthened, where the existing Workforce Investment 40

51 Workforce Training Board acts as the recognized broker of workforce training resources for employers, educators, and job seekers. Workforce trainers should flexibly use technology to make it easier to learn from home, work, or the local community. Possible technologies include the internet and digital television. School systems and technical schools should prepare for an increase in youth, which will most likely include increases in the number of adjudicated and special needs youth. Because a small percentage of the county youth who are adjudicated or have other special needs are difficult to pull into the system, the Workforce Investment Board will expand efforts to reach these youth by working with the Youth Council, district justice offices, and others in the District Justice System. Educators and workforce trainers will need to expand services for immigrants, especially those with limited education or English language skills. Information about workforce training resources needs to be made more accessible, particularly for workers who have a job and may not be familiar with CareerLink and other services. The workforce training system needs to be constantly monitored to keep up with changes in the economy. The Workforce Investment Board and its Youth Council will encourage collaboration among the Youth Empowerment Program staff, the Pennsylvania Labor and Industry Apprenticeship staff, and the staff for the county s four Technical Career Centers to establish, encourage, and expand apprenticeship programs. Trainers and educators of adults should tailor more programs towards older workers, who will become more important and prevalent as the county population ages and the proportion of middle-aged workers declines. The Workforce Investment Board will monitor the job system, trying to identify unmet technical skills needed by local businesses and industries. This information will then by passed on to training providers so they can tailor programs to these needs. 41

52 Chapter Five Local employers should expand their interaction with local schools to address deficiencies in the entering workforce. More employers might hire students for part-time jobs and internships, participate in career days and job fairs, work with schools to develop specialized curricula, conduct youth apprenticeship programs, organize programs with schools, work to install industry standards in the curriculum, have employees act as mentors to students, loan employees to instruct students, contribute space or equipment, and host teachers for summer internships. Various levels of government, nonprofits, and businesses in the Philadelphia region should expand efforts, such as the current Knowledge Industry Partnership, to attract skilled workers to the area, especially collegeeducated people in the 25 to 34-year-old age group. Improving the region s already good quality-of-life and changing its somewhat negative image may help these efforts. The county will continue supporting the Montgomery County Community College and explore ways to encourage more students, both from Montgomery County and neighboring counties. 42

53 Chapter 6 Workforce Availability In today s world, where jobs are dispersed and family arrangements can be complex, employers frequently have trouble filling positions not because of the skills of workers but because of other factors, such as a lack of day care, difficulty getting to the job, or lack of appropriate housing. These factors are sometimes referred to as spatial barriers, since they are more related to the region s infrastructure and development patterns than specific characteristics of businesses. Unfortunately, Montgomery County is not immune from these problems. Although the county is tremendously diverse, it still has many imbalances leading to long commutes, limited day care choices, and difficult housing choices. This chapter of the economic development plan examines ways to make it easier for workers to get to work, whether their potential roadblocks are transportation related, family related, or housing related. The chapter will first examine existing conditions and then will outline a workforce availability plan. Figure 17 JOBS HAVE GROWN AND DISPERSED IN THE COUNTY 1970 Job Distribution Existing Conditions A growing place like Montgomery County is always changing, with businesses relocating, travel times increasing, and housing options shifting. Over time, the impact of these changes slowly builds up until a problem emerges, such as workforce availability. This section identifies some of the problems for the county s workforce and then discusses some of the possible causes. Spatial Barrier Problems A number of statistics and survey results illustrate the spatial barrier problem facing workers and employers. Of nearly 200 surveyed businesses, 77% were experiencing serious or moderate shortages in key positions, according to a 2001 survey by MCIDC and MCWIB. In addition, many lower-wage retail and service companies have had difficulty filling positions, often filling vacant positions with people from outside of the county. More people commute into the county than ever 2000 Job Distribution Source: DVRPC employment estimates. 43

54 Chapter Six before. In 2000, approximately 100,000 more people commuted into the county than out of the county. Under current trends and influenced by a variety of factors, that number is expected to grow to 120,000 more people. One factor that contributes to this problem is housing, both its availability and affordability. As traffic has increased, commuting has become more difficult and time consuming. From 1990 to 2000, the average commute trip of Montgomery County residents increased from 22.5 minutes to 26.5 minutes, adding up to nearly an hour a day being consumed by commuting, according to the U.S. Census. Total vehicle miles driven has also increased significantly, as has the amount of time it takes to travel during the peak rush hour. Working from home did increase from 2.9% of the county s commuters in 1990 to 3.6% of the commuters in This has helped with traffic but has not yet become a dominant trend. Good transportation access is critical for workforce availability. Workers also need adequate day care facilities. Possible Causes of Spatial Barriers Employment has become more dispersed around the region and within Montgomery County. In 1970, Philadelphia accounted for nearly half of the region s jobs, with 47% of the total. By 2000, that percentage had dropped to 28% of the total. Within Montgomery County, older concentrated employment centers that were near affordable housing and public transportation, such as Norristown, Lansdale, and Pottstown, have given way to more dispersed employment centers, including King of Prussia, Plymouth Meeting, Blue Bell, Fort Washington, Horsham, West Point, and Upper Providence. Of 68 major employers in Montgomery County with 500 or more employees, only 47% were transit accessible, according to a 1999 DVRPC study. Even when employers are near transit, the time and effort involved in using this service often makes it inconvenient. Although not outrageously priced, housing in the county is not affordable to those earning lower incomes. For example, in 2000 the median gross rent was $757 a month. A person earning $10 an hour, working a 40 hour week, and spending 28% of their income on housing can only afford to pay $485 a month. 44

55 Workforce Availability For day care in Montgomery County, two problems in particular make it difficult to expand, according to a PA Department of Public Welfare profile. These are the hiring and retention of staff and licensing and zoning issues. Workforce Availability Plan No system is ever perfectly in balance, and this includes transportation, housing, and services. Often, the market eventually takes care of a need. At other times, however, government policies and actions will strongly affect these needs. For example, road construction and bus service decisions will affect the ability of workers to get to their jobs, and planning and zoning decisions will affect the supply of housing. This section describes a number of policies that government, non-profits, and businesses can take to address workforce availability. Business Location Decisions Business location decisions have a strong influence on the ability of workers to reach their jobs. When businesses relocate and move from more urban locations to greenfield sites in rural areas, it is often difficult for many workers to reach the new location. Businesses and economic development agencies should consider the following policies when determining a location: Relocating businesses should identify where their current workforce lives and how far these workers might be willing to commute. These businesses should try to find suitable sites as close to the majority of the workforce as possible. Businesses that need lower-wage workers may need to locate where more affordable housing is located, such as urban boroughs or the City of Philadelphia, or near public transportation facilities, particularly the county s passenger train lines. Any large business must locate near good transportation facilities, including highway interchanges and public transportation. To be near various services used by employees, businesses should locate in the county s existing developed areas or designated growth areas. Much of the county s housing is unaffordable. New apartment rents can also be unaffordable to many workers. 45

56 Chapter Six Figure 18 CURRENT OR POTENTIAL MAJOR ROAD IMPROVEMENTS (From the Vision Plan: Shaping Our Future) Map Number Type of Improvement Future Widening Future Widening Future Widening Future Widening Future Widening Future Widening Future Widening Future Widening Highway Reconstruction Highway Reconstruction Highway Reconstruction New Road New Road New Road New Road New Road New, EZ Pass, or Expanded Interchange New, EZ Pass, or Expanded Interchange New, EZ Pass, or Expanded Interchange New, EZ Pass, or Expanded Interchange New, EZ Pass, or Expanded Interchange New, EZ Pass, or Expanded Interchange New, EZ Pass, or Expanded Interchange New, EZ Pass, or Expanded Interchange New, EZ Pass, or Expanded Interchange Potential New Bridge Potential New Bridge Potential New Bridge Potential New Bridge Corridor Improvements Corridor Improvements Corridor Improvements Location Route 422 from King of Prussia to Sanatoga Route 76 from Route 476 to the Turnpike PA Turnpike from Plymouth Meeting to Valley Forge Route 476, Northeast Extension to Lansdale Route 202 in Montgomery County Route 309 from expressway end to Route 202 County Line Road from Route 611 to Route 309 Route 611 from Turnpike to Route 463 Route 309 Expressway Route 100 in Montgomery County Route 422 from Sanatoga west to county line Route 23 Relocation Lafayette Street Extension Alan Wood Road Extension Route 309 Connector Route 202 Expressway Turnpike at Welsh Road Turnpike at Fort Washington Route 476 and Broad Street Route 476 and Township Line Road Turnpike and Lafayette Street Extension Markley and Lafayette Streets Turnpike in Upper Merion Schuylkill Expressway and Henderson Road Route 422 and Trooper Road Schuylkill River near Betzwood Perkiomen Creek at Collegeville Schuylkill River north of Phoenixville Schuylkill River near Swedeland Schwenksville Area Sumneytown Pike west of Kulpsville Woodhaven Road 46

57 Workforce Availability Transportation Access Transportation access is probably the most important element of workforce availability. Workers need to be able to get to their jobs. The Transportation Plan, an element of Shaping Our Future: A Comprehensive Plan for Montgomery County, covers transportation improvements in detail. However, a number of important issues that are most related to workforce availability are highlighted below. According to a DVRPC survey of Pennsylvania suburban employers with 100 or more workers, 95% rated the automobile as the practical means for their employees to get to work. In the suburbs, the car remains the primary means of transportation for work commuters. A number of improvements and policy changes can be made to improve worker access, including: Making a variety of physical improvements to the highway system. Figure 18 shows the major improvements that are proposed in the Transportation Plan, although many other smallerscale improvements are also proposed. Expanding the use of flex time, ride sharing, condensed work weeks, telecommuting, and other travel demand management techniques by businesses. The county s two Transportation Management Associations can help coordinate these efforts. Expanding the use of technological solutions, such as EZ Pass and computer-controlled traffic signals. Having businesses or developers help improve local roads to handle the traffic generated by businesses in new locations. Identifying and improving bottlenecks and missing pieces of the road grid system. Also, a number of improvements can be made to public transportation in the county, including: Expanding bus and train service to growing job centers, such as the 422 Corridor and the Indian Valley. Figure 19 shows where public transportation service could be expanded. Encouraging businesses to participate in TransitChek, which subsidizes public transportation. 47

58 Chapter Six Figure 19 POTENTIAL EXPANDED PUBLIC TRANSPORTATION FACILITIES The Commonwealth Breeze shuttle in Horsham successfully extends public transportation to businesses not previously served. Providing connector services and shuttles to businesses from transportation stops, particularly train stations. For example, the Horsham Breeze and Commonwealth Breeze shuttles run from the Willow Grove Park Mall and Willow Grove train station to a number of business parks in Horsham, including the Horsham Business Center and the Commonwealth Business Campus. These buses are run by SEPTA under contract with the county, which pays most of the cost with some support from private companies. Sometimes, the county contracts with SEPTA to simply increase the level of service on a bus route serving business commuters, such as the bus serving Blue Bell, or the county pays to have a bus route extended to employers at certain times of the day, such as the bus serving employers along Route 309 in Lower Gwynedd and Montgomery Townships. A few large employers run their own shuttles from nearby train stations. All of these techniques for increasing connector and shuttle service should be pursued in the future. Possible future locations for these types of services include the Route 422 Corridor, particularly in Upper Providence, and the Kulpsville area. 48

59 Workforce Availability Continuing to use the county s two Transit Management Associations (TMAs) as facilitators of workforce access, helping employers get their workers to their jobs. Improving travel times, frequency of service, and off-peak service for public transportation, particularly trains and buses serving major employers with multiple shifts. Building sidewalks and other pedestrian infrastructure so users of public transportation can walk safely and comfortably to their final destination. Making it easier to use suburban public transit, which has a confusing array of fare structures, types of public transportation, and schedules. More consistency should be brought to the system as a whole. One simple step would be renumbering the regional rail lines. Right now, each number, such as the R-5, has two lines that run into the suburbs. One leg of the R-5 goes out the Main Line, the other leg to Doylestown. These should have separate numbers. Housing In 2000, Montgomery County imported approximately 100,000 more workers than it exported. There are probably many reasons for this, including the county s central location and interlaced highway network, making it a logical place for residents of other counties to work. However, housing prices, location, and choices probably also play a role. These housing issues are discussed in detail in the Housing Plan, an element of Shaping Our Future: A Comprehensive Plan for Montgomery County. However, a number of housing issues that are most related to workforce availability are highlighted below. Communities with significant employment centers should explore methods of allowing more housing in or near these employment centers. To give workers more housing choices than have been available over the past decade, more apartment, townhouse, twin, and small-lot single housing should be built. As much of this housing as possible should be available to people of all ages. This housing variety will help people with a range of incomes, lifestyles, and ages. Zoning and subsidies that encourage affordable housing should be expanded. 49

60 Chapter Six Municipalities should allow day care facilities in all employment centers. Day Care and Other Services Day care is a critical issue for working parents, particularly those with younger children. Without appropriate day care, many parents, including single parents, will be unable to work. The following actions will help create a better supply of day care: Municipalities should allow family day care homes, group day care homes, and day care centers in a variety of locations, both residential and nonresidential. Specific regulations should be put into every municipality s zoning ordinance. Because of the need for day care with nontraditional hours, municipalities should consider expanding the hours that day care centers can operate if they currently limit the hours. This expansion of hours might be most appropriate in office parks and other employment centers. Various levels of government, businesses, and non-profits should continue to explore methods of expanding day care provision, making it more affordable, improving the quality of services, and lowering staff turnover, potentially by increasing salaries. Larger businesses should consider providing onsite day care services. In addition, workers may need other services, such as dry cleaning, banking, and hair cutting, that may not be easy to reach, perhaps because of time or vehicle availability. Ideally, these services should be provided within major employment centers, either as independent buildings or within large employers. 50

61 Chapter 7 Downtown and Main Street Revitalization Overall, the county economy has performed remarkably well over the past half a century. However, not every location or business has done well, and many of the county s traditional downtown and Main Street areas have struggled while shopping centers, malls, and national retailers have grown and prospered. Yet these downtown and Main Street areas remain economic engines and focal points for the community-at-large, places where people of all ages and incomes can gather together shopping, attending church, using the post office, or participating in parades and festivals. If there is one criterion that outsiders use to judge an area, it is the character and quality of its downtown and commercial areas. If the downtown is rundown, full of vacancies, or in disrepair, then the whole place must be in trouble. On the other hand, if it is vibrant and attractive, the whole town or neighborhood must be a good place to live, start a business, or invest. This chapter of the economic development plan examines ways to revitalize the county s traditional downtown and Main Street areas, first by examining existing conditions and then by outlining a downtown and Main Street revitalization plan. Existing Conditions The county has many downtown and Main Street areas, ranging from large places like Ardmore or Pottstown to relatively small areas like North Wales or Pennsburg. All of these communities, however, have a number of common defining characteristics. These include: A large concentration of older traditional retail commercial and institutional buildings that are identified as the community center, and, An emphasis on walking rather than driving, with an extensive sidewalk network, buildings close to the street, and a limited number of parking lots next to the street. Bryn Mawr has an active downtown area. Figure 20 MAJOR DOWNTOWN AND MAIN STREET AREAS The county has approximately 35 major downtown and Main Street areas. Figure 20 shows the location of these areas in Montgomery County. In 51

62 Chapter Seven Shopping centers and malls have weakened traditional downtown areas. Many downtowns have lost traditional industries. addition, there are smaller places or less traditional areas around the county that could also benefit from revitalization and the policies outlined in this chapter. There are a variety of trends and problems that have led to a decline in many of the county s downtown and Main Street areas, including: New Shopping Habits and Dependence on Automobiles. Since the end of World War II, Americans shopping habits have changed dramatically, shifting from downtown areas to shopping centers and malls. In Montgomery County, The King of Prussia and Plymouth Meeting malls have supplanted Norristown as a retail destination, the Coventry Mall has supplanted Pottstown, the Montgomery Mall has supplanted Lansdale, and the Willow Grove Mall has supplanted Jenkintown and Hatboro. Other areas have been strongly influenced by the many other automobile-oriented shopping centers constructed around the county. Most likely, the county s downtowns and Main Streets will never regain their status as the primary shopping location for county residents. Instead, these areas need to find smaller scale retail, office, or entertainment market niches. New Retail Approaches. Nowadays, retailing is dominated by large national chains that usually need larger first floor areas than typically found in the county s downtowns and Main Streets. In addition, when building on vacant land, many of these national retailers need relatively large lots, compared to the norm in the county s downtowns and Main Streets. However, some retailers, most notably chain drugstores and fast food restaurants, have been able to adjust their standard approach to fit into downtown and Main Street areas. Decline of Traditional Industries. Some county downtown and Main Street areas have suffered from a decline of manufacturing that has left them with vacant industrial sites. This decline of traditional jobs has led to a decline in local customers for retail shops and less tax revenue for the government. In addition, vacant and deteriorating industrial sites hurt a community s image in the wider area. Lack of Organization. Shopping centers and malls have one controlling organization that arranges appropriate retail mixes, store hours, 52

63 Downtown and Main Street Revitalization and marketing. Most downtown and Main Street areas lack this type of organization or ownership, which often provides critical coordination and marketing. Less Visible Parking. Most people in Montgomery County drive to their destinations and have become accustomed to easily spotting parking near malls and office complexes. Even when drivers have to park far from their destination, the effort of finding the space is easy. In older downtown and Main Street areas, parking is not so easy to see, although there may be plenty of parking spaces. The perception, and sometimes the reality, is that there is not enough parking. Land Constraints. Many downtown and Main Street areas simply lack additional land for development, particularly large parcels, so development goes to other areas. At times, owners of vacant or underutilized properties block acquisition of this land for redevelopment. Building Obsolescence. Some older commercial and residential buildings do not meet the expectations of today s businesses and homeowners. Although these are often well-built and attractive buildings, they may need significant upgrading to meet current standards. Poor Design of New Development. In an effort to compete with shopping centers and strip commercial areas, some municipalities have allowed or even encouraged car-oriented development that is a complete mismatch to the current downtown character. This car-oriented development usually does little to help the rest of a downtown area and may actually hinder future revitalization efforts. Aging Infrastructure. Generally, existing downtown and Main Street areas have existing infrastructure water lines, sewers, gas lines, sidewalks, and roads while many new greenfield locations lack this infrastructure. However, this is not always as much of an advantage as it could be if the infrastructure is old or has been poorly maintained. Image Problems. Some downtown and Main Street areas simply have an image problem. They may not be seen as safe and comfortable destinations. They may be seen as passé, In older downtowns, parking areas can be difficult to find. Although Jenkintown has many parking areas, they are not always easy to access. In addition, many are privately owned and are not open to the general public. Auto-oriented commercial development in downtown areas does not help these areas as a whole. 53

64 Chapter Seven yesterday s news. Or they may have inconsistent levels of maintenance, repair, and updates among the buildings, where one or two poorlymaintained buildings can ruin the image of a whole area. Inappropriate Government Policies, Taxes, and Rules. Although federal, state, and local governments have initiated a variety of efforts to revitalize downtowns and Main Streets, many other government policies have created problems for these areas. For example, most transportation improvements have been far from downtown areas, pulling development away from these areas. And many economic development dollars have lured big companies to greenfield sites. The local tax structure, with its reliance on the real estate tax, tends to favor growing municipalities with limited services rather than established downtowns and Main Streets, especially when these downtowns are in communities that are fully developed. And local municipal regulations, particularly outdated zoning ordinances and inappropriate building codes, often discourage revitalization by making redevelopment more expensive and time consuming. This expanded and rehabilitated parking lot in Narberth was partially funded through the County Community Revitalization Program. In Pottstown, the purchase and conversion of an underutilized industrial building into offices was also partially funded through the County Community Revitalization Program. Concerns about Main Streets and downtowns are not new. For nearly 50 years, people have recognized that old fashioned downtown shopping areas are no longer the dominant retailing location in the suburbs. Malls and shopping centers are. So local, state, and federal governments have tried to address this problem, looking for ways to revitalize and reinvigorate stagnant downtown areas. There is a confusing array of government economic development programs administered by a bewildering variety of public agencies, quasi-public agencies, business groups, and nonprofits that affect downtown revitalization. These range from housing subsidies to business loans, from brownfields cleanup to tax abatement. Well-known programs in the county include Community Development Block Grants, Enterprise Zones, and Keystone Opportunity Zones. The Appendix lists economic development programs in the county, as well as the various agencies and groups involved with administering these programs. Montgomery County administers a variety of these state and federal programs. In addition, in 54

65 Downtown and Main Street Revitalization 2000 the county established a Community Revitalization Program that directs county funds towards many of these downtown areas, after the local community has created a local revitalization plan. One of the most successful downtown revitalization programs is the Main Street Program, which is promoted nationally by the National Trust for Historic Preservation and is administered in Pennsylvania by the Department of Community and Economic Development, which awards grants for local Main Street programs, including Main Street manager salaries. In fact, Pennsylvania is one of only two states that provide start-up money that can be used for operating costs associated with running a Main Street program. This program emphasizes four key elements of a successful revitalization effort. These are: 1. Design. Enhancing the appearance of the commercial district by rehabilitating historic buildings and having compatible new buildings, streetscapes, and signs. 2. Organization. Building a consensus among the many different people, businesses, and organizations involved in downtowns and Main Street areas and creating a group that can continuously follow through on revitalization efforts. 3. Promotion. Marketing the downtown s assets to customers, investors, businesses, residents, and visitors. 4. Economic Restructuring. Strengthening the downtown s economic base and finding appropriate market niches for the downtown area. There have been a number of Main Street managers in the county over the past 20 years. In 2002, six communities had Main Street Programs; these were Ambler, Ardmore, Cheltenham, Hatboro, Jenkintown, and Pottstown. Main street programs are holistic economic development corporations. The entire community benefits when their downtown is economically healthy. Samuel Friedman Former Executive Director of Main Street Hatboro Downtown and Main Street Revitalization Plan Downtown and Main Street revitalization is not an easy task. Many local communities and leaders have been trying for years, some more successfully than others. Even when success is achieved, communities cannot become complacent. Shopping centers and malls are always trying to improve and 55

66 Chapter Seven Ambler streetscape Redevelopment in Ambler Ambler Borough: A Success Story in Progress Like many of the industrial towns scattered around the county, Ambler Borough has seen more prosperous times, when most locals did their shopping in the stores along Butler Avenue and went to work in the factories lining the railroad. By the late 1970s, those days were long gone. By that time, people shopped at out-of-town shopping centers and nearby malls, like the Montgomery and Plymouth Meeting Malls. Fort Washington became the local industrial and office employment center, not downtown Ambler. So the borough decided it had to do something. In the early 1980s, Ambler completely redid its streetscape by burying power lines, building curb extensions, planting street trees, installing decorative street lights and furnishings, and improving its municipal parking lots. People driving through Ambler s downtown now saw an attractive and appealing place. Despite these improvements and their positive effect on Ambler s image, vacant storefronts continued to increase. The efforts of local business associations to improve the downtown waxed and waned, often dependent on volunteer efforts and adversely affected by retiring store owners. In 1992, the borough established a Main Street Program with a full-time staff person. Since that time, this organization has worked tirelessly to raise the profile of the borough in the wider community, while recruiting new retailers and restaurants. It also runs special events, tracks businesses and vacancies, conducts fundraisers, brings in grants, and tries to attract new businesses to Ambler. In 2000, these efforts really paid off when a group of developers and investors bought 10 properties in the borough. Their first project was rehabilitating one of these properties, a rundown bar near the train station, into an upscale bar and restaurant, trying to improve the impression of the downtown that drivers first receive as they enter from the west. Since that initial rehab project, they have converted a thrift store into a women s clothing store, convincing the proprietors to move their store from Chestnut Hill; converted a vacant bank into a home accessory shop; and fixed up a movie theater property by bringing in a restaurant, fitness center, and theater operator, who has successfully run the Doylestown movie theater. Other new shops have opened, and Ambler is now seen as an up and coming downtown area. However, the job isn t done. Ambler still needs to bring in more new retailers, while redeveloping brownfield land near the train station. Even after this happens, the borough will need to continuously stay on top of its main street area, keeping it a destination for area residents. 56

67 Downtown and Main Street Revitalization capture a greater share of retail trade. Downtowns and Main Streets must do the same, constantly adjusting to reflect changes in people s tastes and interests. Despite these challenges, downtown and Main Street revitalization can be achieved. This plan lists a variety of actions local communities can take to improve their downtowns and Main Streets. These actions are divided into two broad categories: attracting and retaining new businesses and improving the downtown image and services. Before tackling any of the specific actions listed below, local municipalities should create an organization that will oversee revitalization, push for changes, and remain actively involved in the process for the long haul. This organization should be strongly supported by the public, businesses, and local government. Too often, towns and business organizations have a lot of energy and drive at the beginning of a revitalization effort but less so as time goes by. An organization that is specifically dedicated towards revitalization can continuously initiate new actions, persevering over the ups and downs of the revitalization process. These organizations can take a variety of forms. In Ambler, it s a Main Street organization; in Ardmore, a business improvement district; in Schwenksville, a new economic development organization; in Cheltenham, a function of the township government; and in Jenkintown, a community group. Funding can come from membership in the organization, tax levies from business improvement districts, government grants, local municipal funds, fundraisers, major donors, advertising, and event sponsorship. The actions listed below, especially when pursued by an active and vibrant organization, will help communities revitalize. Attracting and Keeping Businesses Like a shopping center or mall, downtowns and Main Street areas continuously have turnover of stores and restaurants. Unlike a shopping center or mall, most downtowns have no controlling organization that arranges leases, markets the area, or upgrades the facilities. However, despite this inherent weakness, downtowns and Main Street areas can take a variety of actions to improve their 57

68 Chapter Seven ability to attract and retain businesses. Tax Incentives and Subsidies. For many businesses, it is simply more expensive to be in a downtown or Main Street location than a cornfield on the edge of town. There are a variety of reasons for this, including cleanup costs, demolition costs, land consolidation costs, utility upgrade costs, and building costs, particularly costs associated with structured parking. In addition, the uncertainty and delays often associated with redevelopment make this development more expensive. This not only applies to retailers but also applies to office and industrial uses. The Conshohocken area has benefited from a variety of government infrastructure projects, grants, subsidies, and tax incentives. Artist s rendering showing how the First Fidelity Bank Building might look after redevelopment. To help businesses locate in downtown areas, a variety of government grants, infrastructure projects, tax incentives, and low-interest loans have been used over the years. Currently, the state Enterprise Zone Programs in Norristown and Conshohocken provide tax incentives to businesses. Local communities can provide tax incentives through a tax increment financing (TIF) program, which exempts developments from paying the increased real estate taxes they generate for a number of years and instead directs these increased tax funds to the development itself. Sometimes, direct grants or loans are given, such as the Section 108 loans or the Community Development Block Grant Program from the U.S. Department of Housing and Urban Development. The most successful use of government subsidies in the county, and probably the state, has occurred in West Conshohocken and Conshohocken, where a wide range of government tax incentives, grants, and infrastructure improvements have been used. In addition, Pottstown has adopted tax increment financing guidelines, which might be used on the First Fidelity Bank Building, which will be converted into a ground floor restaurant with upper story offices. Transportation Access. Good transportation access is very important for all types of development, whether it is in urbanized areas or 58

69 Downtown and Main Street Revitalization farmfields, but is critically important for any large-scale job-creating development, such as large office buildings and research facilities. West Conshohocken and Conshohocken have benefited greatly from the entrances and exits to Routes 76 and 476, as well as the presence of a SEPTA regional rail station. Norristown, on the other hand, has poorer access to the regional highway system, even though these highways go near the borough. To address this problem, the borough and county have developed a plan that would add a slip ramp interchange to the Pennsylvania Turnpike in the Conshohocken Road and Ridge Pike area while also extending Lafayette Street to this new interchange. In addition, a new interchange would be built at Lafayette Street and the Dannehower Bridge. These improvements would bring regional traffic quickly and conveniently into Norristown s downtown area. Better access to the regional highway system is important for attracting development, particularly office development. Road improvements in Norristown will bring traffic more quickly and easily into the downtown. 59

70 Chapter Seven Marketing. Downtown and Main Street areas need to be marketed, not only to customers but also to potential tenants. Marketing efforts can include web pages with lists of businesses, Yellow Pages style books targeted to local residents, brochures or flyers directly mailed to nearby residents, advertisements in newspapers or other media, quarterly and semi-annual newsletters, and special events or promotions. Having a strong customer base will help downtown and Main Street areas attract new businesses. Ardmore 2000, for example, has created an overall guide to local businesses, titled The Ardmore Business Directory. In addition, they have created a guide to antique shops that is available in each shop, as well as a restaurant guide that is mailed to local employers. Lots that were assembled in Norristown by the county Redevelopment Authority will be the site for the new Pennsylvania DEP SE Regional Headquarters. Land Consolidation/Ownership. Some downtown and Main Street areas have no land available, with everything fully developed. Other areas have land, but the property owners won t sell. Still others have a number of smaller underutilized lots that need to be consolidated. Municipalities can step in and initiate a redevelopment process, working with the County Redevelopment Authority. After an area has been certified as blighted and after a redevelopment plan and proposal have been adopted, the Redevelopment Authority can condemn land and convey it to a private developer for redevelopment purposes. Jenkintown Borough, in its revitalization plan, proposes to create a redevelopment area among a number of underutilized and unattractive lots along Old York Road. This area might potentially be developed with offices, providing an appealing and distinctive entrance into the borough. In the early 1990s, the county redevelopment authority consolidated a number of blighted properties in Norristown into the Hancock Square site, which is now being developed with an office building. In Skippack Village and Ambler, as well as Manayunk in Philadelphia, developers purchased 60

71 Downtown and Main Street Revitalization multiple scattered properties, giving them the ability to control the character and nature of the redevelopment. Understanding the Current Market. Local communities need to fully understand their market, so they can identify available properties, determine how a new business might fit into the retail mix, and project what problems may crop up. Important market information includes the square footage of buildings, the specific use of buildings or products sold in a store, when leases are up, and what current businesses plan to do in the future. It s better to know a key store or tenant is leaving than to be blindsided, with a space potentially left vacant for months or years. Philadelphia has instituted an aggressive program to identify when office leases of large tenants are up. Ambler s Main Street Program constantly updates its information on tenants, properties, and leases. Market Niches. Although some downtowns and Main Streets, such as Narberth s, continue to provide a full range of local stores, including a grocery store, pharmacy, five and ten, women s clothing stores, and hardware store, most downtowns and Main Streets no longer have this full range of stores, having watched many of their retailers move to nearby shopping centers. These areas may be able to support some of these traditional businesses, but they must also look to specialized stores and market themes, filling holes not met by shopping centers and mega-malls. Professional market studies and surveys of residents can help identify missing businesses that may be appropriate for a downtown or Main Street area. Narberth Borough, for example, has conducted a professional market study, while the boroughs of East Greenville and Pennsburg have conducted surveys of unmet shopping needs in their area. Just like a mall or shopping center, communities should carefully consider prospective businesses, looking for those businesses that fit the communities desired character and market and rejecting those that do not. Communities must understand the local market, staying on top of vacancies, leases, business plans, and retail demand. Hatboro s Let s Do Lunch program has helped establish a market niche. 61

72 Chapter Seven Some communities have identified market niches that expand on their traditional retail base. Schwenksville is marketing itself as the Gateway to the Perkiomen Trail and Pennsylvania s First Greenway Community. Hatboro has started a program with nearby office complexes encouraging workers to have lunch in the borough. Other areas, like Skippack Village, have become specialty retail and entertainment destinations for county residents. Norristown s farmers market brings people into town. The expanded Montgomery Theater in Souderton will act as a community draw. Anchor Tenant/Community Draw. A shopping center or mall depends on its anchor tenant to attract customers. Some communities may want to create an equivalent anchor tenant in their downtown. This might be a department store or large specialty store that attracts a lot of customers, or it might be another use, such as the renovated movie theater in Ambler, the expanded playhouse in Souderton, a new farmer s market in Telford, or the Keswick Theater in Keswick. Libraries, colleges, museums, and other non-retail uses could also be a draw for a downtown area. Directing Business Locations. Businesses and governments can choose a wide variety of locations for their buildings and offices. Any new federal, state, or county office building should be located in one of the county s downtown or Main Street areas. In fact, the federal government is guided by two executive orders giving preference to central business districts for new government offices, particularly historic buildings in these districts. In addition, Pennsylvania recently passed the Downtown Location Law, giving preference to downtown areas for state offices. The new Southeastern Regional Headquarters of the PA Department of Environmental Protection is located in Norristown. In addition, state, county, and nonprofit economic development agencies, such as the County Economic and Workforce Development Department, which includes the Montgomery County Industrial Development Authority, or the nonprofit Montgomery County Industrial Development Corporation, should initially direct new 62

73 Downtown and Main Street Revitalization businesses and office developments towards traditional downtown and Main Street areas, as well as brownfield sites adjoining these areas. To make the process easier, these organizations should maintain an inventory of potential development sites in downtown areas. To help private businesses find locations in downtown and Main Street areas, there may be a need for a regional nonprofit agency to take the lead, acting as a liaison between local communities and private businesses and developers. New Housing. By encouraging new homes near downtown and Main Street areas, local communities will generate more local customers for businesses, create a 24-hour environment, add eyes on the street, and improve the neighborhood s overall image. This housing can take a variety of forms, including apartments above stores, new apartments or condominiums, townhouses, twins, and small-lot singles. As part of the Millennium Project in Conshohocken, 500 new multifamily homes are proposed. Ardmore has started a new program that will subsidize the conversion of vacant or underutilized space above ground-floor retail stores into affordable apartments. New townhouses in West Conshohocken are near the new office towers. Small Business Programs. Many, though not all, of the businesses in the downtown and Main Street areas in Montgomery County will be small businesses. There are a variety of programs, loans, and grants available from the Small Business Administration to help these businesses. For Montgomery County, the SBA runs three Small Business Development Centers located at Temple University, the University of Pennsylvania, and Lehigh University. Local Main Street and downtown organizations can act as liaisons between their local businesses and these centers, explaining the programs that are available. In addition, these organizations or the local municipality can run seminars, training sessions, and loan or grant programs that will directly benefit local businesses. They may also want to support any nearby incubator program, 63

74 Chapter Seven which provides services and advice to small businesses located in the incubator. For example, Ardmore 2000 runs business development seminars that have addressed e- commerce, advertising, marketing, customer service, window display design, business planning, exit strategies, etc. Ambler has created a commercial loan program that will help local businesses improve their interiors. Norristown has a staff person who promotes the downtown and helps businesses get technical assistance. Public parking lots help downtowns compete with other areas, for both customers and businesses. Parking. If there is one issue that everyone seems to agree is a major problem, it is parking. Surprisingly, however, the amount of parking is not always the real problem; rather, it often is the location, ownership, design, management, coordination, signing, and enforcement of existing parking areas, including on-street parking. Nevertheless, some downtowns and Main Streets do lack parking, or will in the future if their revitalization efforts succeed. More parking can be created by adding appropriatelylocated surface parking lots, consolidating parking behind buildings, adding on-street parking, enforcing on-street parking regulations better, organizing privately-owned lots into a coordinated system, or even building parking garages. Royersford Borough has an excellent common parking lot behind its commercial buildings. Ardmore has a number of scattered surface lots. Cheltenham for the Glenside area, Norristown, and West Conshohocken are studying ways to add parking garages, with streetfront commercial areas in these garages. Conshohocken has created a parking authority. Recently, Jenkintown Borough has stepped up its on-street parking enforcement, opening up more spaces near Uptown, especially around lunchtime. And Pottstown has added more parking to High Street by reducing the number of travel lanes and adding back-in angled parking to one side of the street. Many communities have adequate parking, but it is difficult to find or use. A well-designed 64

75 Downtown and Main Street Revitalization signage program can help people find parking. Ambler Borough, for example, has improved the signs identifying its public parking areas. Codes. Local zoning and building codes need to fit the character of the community. Too often, the zoning ordinances found in downtown areas have standards that force developers to go to the zoning hearing board for variances, increasing the expense of development and the uncertainty involved with a proposal. Zoning should match the character of the downtown, with small or no side yards, buildings close to the street, and appropriate impervious coverage. In addition, a wide range of compatible uses should be allowed in the zoning while incompatible uses, such as apartments on the ground floor, should be prohibited. Pottstown Borough has created a new Gateway Zoning District in part of its downtown area to make it easier for appropriate development. Norristown has a new Unified Development Overlay District that applies to much of its downtown. Parking requirements in these areas can also be reduced, based on shared parking, walkability, access to public transportation, availability of on-street parking, and proximity of public parking lots. Some building codes may be too strict for old buildings. These should be adjusted, without compromising safety, to allow the adaptive reuse of older buildings typically found in downtowns and Main Street areas. In addition, communities encouraging downtown revitalization may want to waive some of the normal fees that would apply to the project, as an incentive to developers. To remove some of the uncertainty associated with redevelopment projects, local municipalities may want to make the process as easy and straightforward as possible for developers, offering them a one-stop development process and potentially using redevelopment plans and specific plans as a guide to developers. Public parking areas must be identified with easy to see signs. 65

76 Chapter Seven New elementary school in Bridgeport. North Wales has a new streetscape. Upgrading of Infrastructure and Facilities. Although most downtowns and Main Streets have sewer lines, storm drains, water lines, gas lines, and other infrastructure, much of this infrastructure could be aging and a detriment to redevelopment. Over time, these facilities should be upgraded and kept competitive with newer suburban infrastructure. In addition, schools, post offices, and other aging government buildings should be kept in their historic buildings whenever possible, as well as churches and other institutions. When a new facility must be constructed, it should be built in the downtown or Main Street area. When discussions took place about a new elementary school in the Upper Merion School District, Bridgeport Borough insisted that this school be located in the borough as a replacement for a school that was closing. The new school was put in the borough, and this has helped spur interest in the borough s housing. Improving Downtown Image Attracting and retaining businesses is only half the equation. Local communities also need to work hard to improve the appearance of downtown, the quality of municipal services, and the overall image of the area. These steps will not only help businesses but will also make the downtown a place where residents and visitors want to go. Streetscape Improvements. Constructing new decorative streetscapes improves the appearance of an area and tells people that this is a special place. Streetscapes can include period street lights and traffic lights, decorative sidewalks and crosswalks, banners and landscaping, and attractive benches, bollards, and trash cans. Many communities have installed decorative streetscapes in their downtown areas. Recently, North Wales Borough, Abington, and Ardmore have installed new, successful streetscapes. Hatboro s recent streetscape improvement project has attracted the attention of a number of private sector investors, who subsequently purchased buildings. 66

77 Downtown and Main Street Revitalization Traffic Calming and Pedestrian Crossings. Once someone is in a traditional downtown setting, they walk from destination to destination and frequently need to cross the street. To make street crossings safer, more comfortable, and more attractive, local communities should slow traffic down on the main street while emphasizing the location of crosswalks. Vehicle traffic can be slowed down with traffic calming, which includes speed humps, speed tables, narrower cartways, on-street parking, roundabouts, curb extensions, alternative paving materials, and other physical means. Crosswalks can be made more visible by painting ladder or zebra style markings or by using different materials, such as brick pavers. In the Keswick area, Abington Township has used traffic calming very effectively, including a roundabout and crosswalks made of different materials. In North Wales, the borough has constructed crosswalks made of colored and pressed concrete, thereby alerting cars that this is a place for pedestrians. On Hector Street in Conshohocken, the borough installed new street trees, curb extensions, and crosswalks to slow traffic speeds. Keswick has successfully used traffic calming and visible crosswalks to slow traffic. Appropriate Building Design. Downtown and Main Street areas are not the same as shopping centers, malls, and strip commercial areas. Instead of nondescript buildings surrounded by parking, most downtowns have unique and architecturally-interesting historic buildings designed for pedestrians, with front doors and windows facing the street. To encourage pedestrians and strengthen the downtown area, new development in downtowns and Main Streets must match the existing character, not try to mimic strip commercial areas. There are a variety of methods that can be used to encourage appropriate building design. Local zoning ordinances can require building close to the street, and parking behind buildings, front doors, and front windows. If the downtown is a historic area, municipalities can create a historic district with a Historic Architectural Review Board (HARB) that reviews all building design in 67

78 Chapter Seven A proposed drugstore in Pennsburg was designed to match the borough s existing historic character. The proposed drugstore in Pennsburg was designed to be walkable from the rest of the borough s downtown area. Historic buildings in Hatboro have been converted into a bank. detail. Or, communities can create design guidelines that show potential developers how they can design their buildings to fit in with the overall downtown area. Pottstown Borough has a HARB that uses a set of design guidelines to require architecturally compatible development in the downtown. Pennsburg has adopted relatively tough zoning standards in its downtown, which a proposed drug store has followed to create a store that matches the existing borough s historic character. Historic Preservation. When structurallysound historic buildings exist, these buildings should be rehabilitated and reused, reinforcing the unique character of the downtown. North Wales, for example, has a historic district and HARB that requires redevelopment of buildings to be historically compatible with the borough s overall character. Lower Salford has a village commercial zoning district in Harleysville that gives bonuses when older buildings are preserved. Façade Improvement Programs. To have a good image, downtowns and Main Street areas must be attractive and well-maintained. Façade improvement programs help accomplish this by providing loans or grants to property owners when they fix up their facades in accordance with design guidelines. Norristown has an on-going façade improvement program. Norristown has an on-going and successful façade improvement program along Main Street. 68

79 Downtown and Main Street Revitalization Sign Design. Just like facades and streetscapes, signs need to be well designed. They shouldn t be too large or too flashy, which might set off a competition among businesses for the biggest and brightest signs, making it difficult for people to distinguish between the various signs. Sign ordinances and design guidelines can be used to regulate signs. In downtown and Main Street areas, signs should be small. Projecting signs and wall signs are most appropriate where buildings are directly next to the sidewalk. Where buildings are set back from the sidewalk, freestanding signs may be appropriate, provided they are not too tall. Some communities may want to prohibit internally lit signs or require signs to meet certain design standards, including color, type face, amount of information, and materials. When Lower Salford adopted village commercial zoning, it also amended its sign ordinance to require special standards for village signs. Visitor Signage. Many of the visitors to downtown areas will be unfamiliar with the area, not knowing where to park, find tourist attractions, or locate businesses. A wayfinding system, which is simply a series of signs with a consistent and attractive design, can be used to help visitors move around a downtown or Main Street area. This type of signage is particularly important for parking areas and tourist attractions. Norristown recently installed a wayfinding system that will direct visitors to important borough landmarks, such as the Elmwood Park Zoo, the Montgomery County Cultural Center, and the County Courthouse. Signs should fit in with the character of the downtown area. Central Green/Gathering Place. In many downtowns and Main Streets in Montgomery County and Pennsylvania, there is no clear center to the community and the public realm. A central green, park, or other gathering place helps establish this center and improve the community s image. Recently, Lansdale Borough created a new park, Railroad Plaza. Pottstown moved its borough 69

80 Chapter Seven hall to a site on High Street and created a central green called the Transit Plaza next to the new borough hall. And Jenkintown created a new town plaza. Pottstown has a new Transit Plaza next to the borough hall. Jenkintown has created a new townsquare area. Special Events. Special events bring people downtown and help reinforce the downtown s status as the center of the community. These events might include parades, sidewalk sales, festivals, car shows, holiday celebrations, races, outdoor music or theater, auctions, food tasting, dog shows, historic reenactments, Oktoberfests, seminars, and an unlimited variety of other events. Many communities around the county sponsor a wide range of special events, particularly places with active chambers of commerce, civic organizations, religious organizations, or Main Street programs. Hatboro, for example, has a Bid$ & Bites food tasting and auction, Summer Fun Sidewalk Sale, Moonlight Memories Car Show, new week-long fall festival, Halloween Stroll, Annual Holiday Parade, and The Santa Center. Public Relations and Marketing. A town s image is based on people s perceptions, whether these perceptions are accurate or not, and whether these perceptions are out-of-date or not. To counter a poor image, communities can let the press and public know about the good things that are happening, including store openings, special events, improved streetscapes, etc. This can be done through press releases, web pages, phone calls, newsletters, and direct mailings. Ambler Borough, for example, has consistently gotten the word out about new development and events in the borough. Its website has been particularly effective for promoting special events. Improved Housing. Much of the image and character of a downtown or Main Street area is created by the housing directly adjacent to these areas. If the housing is rundown or in disrepair, then the image of the downtown is negatively affected. Conversely, if the housing is attractive and well-kept, then the downtown image is positively affected. To improve housing, communities should enforce 70

81 Downtown and Main Street Revitalization their building and maintenance codes more effectively. However, even with good code enforcement, some property owners won t be able to afford to make improvements. For these situations, municipalities may want to participate in homeowner-occupied and renter-occupied improvement programs, which provide advice, grants, and loans to eligible residents. Norristown has a long-running owner-occupied housing rehabilitation program. Although not limited to the downtown area, it does apply to housing in this area. Broken Window Syndrome. Broken windows, graffiti, trash, peeling paint, weeds, crumbling sidewalks, boarded up windows, etc. all detract from the character of an area, creating an unsafe and undesirable atmosphere for many visitors. Because downtown and Main Street areas are composed of many interdependent properties, one property can adversely affect many others. Communities need to stay on top of the broken window syndrome by cleaning the streets, enforcing codes, and working with private property owners to properly maintain their real estate. The City Avenue Special Services District runs a Clean and Safe Program which has community services representatives who clean public areas and assist the police. This district extends to the Bala Main Street area. Cheltenham has a graffiti removal program run by its community policing officers. Other communities have tackled problem buildings or sites to improve the image. In Ambler, developers interested in revitalizing the borough started with a derelict bar at the entrance to the downtown area, converting this bar into an attractive bar and restaurant. Cheltenham has specially trained community police officers who remove graffiti. Adequate Municipal Services. In all downtowns and Main Street areas, local municipalities must provide adequate municipal services, including visible police protection, good maintenance of roads, efficient trash pickup, and appropriate emergency services. All municipalities strive for good municipal services. Some have created specialized services for their downtowns and Main Street areas. Ardmore in Lower Merion, for ex- 71

82 Chapter Seven ample, has police protection that includes policemen on bicycles. Changes in State Tax and Investment Strategies. Some state taxes and policies hurt fully developed communities. For instance, most developed communities have a static or declining tax base, yet demands for services and schooling constantly increase. The state emphasis on local real estate taxes for the majority of school funding hurts these developed communities. If schools were more fully funded by the state based on the income tax, then fully developed communities, where the downtowns and Main Streets typically are located, would have less of a tax burden. In addition, state transportation and other investments have typically been outside of developed communities. More of these resources should be directed towards developed communities with traditional downtowns and Main Streets. Conclusion Recently, there has been a surge of interest in traditional downtowns and Main Streets, not only by public policy makers but also by homeowners and businesses. The county s many downtown areas can capitalize on this interest by creating effective organizations, working to attract and retain businesses, and improving their images. 72

83 Chapter 8 Industrial Land Redevelopment Like much of Pennsylvania, Montgomery County s economy once revolved around manufacturing and included major facilities like the Alan Wood Steel works, Firestone Tires, and American Olean and Tile. Today, although Montgomery County still leads the state in manufacturing employment and manufacturing is a critical part of the local economy, this manufacturing no longer dominates the county economy as it once did. Many old industrial sites are now vacant or underutilized, with prospective buyers and developers nervous about possible environmental contamination. Yet many of these old industrial sites, along with some vacant institutional, utility, and heavy commercial sites, are ideal locations for redevelopment they are in developed communities that typically want redevelopment and can offer existing infrastructure to support this development. In addition, these locations are often near highways and other employment centers in Montgomery County. Redevelopment of these brownfield and other sites will remove eyesores from the local community while bringing back the vitality of the local neighborhood. This chapter of the economic development plan discusses ways to encourage the redevelopment of abandoned or underutilized industrial sites, first by examining existing conditions and then by outlining an industrial land redevelopment plan. Existing Conditions The county has many underutilized industrial areas, with the majority located along the Schuylkill River or along freight railroad lines. Many of these industrial areas are brownfield sites, which means they might have some contamination or may be perceived as having contamination. This chapter examines policies for both brownfield sites and other underutilized or abandoned industrial land. For the purposes of this chapter, brownfields are defined as: Sites that are abandoned, idle, or under-used industrial, commercial, or residential facilities where use, expansion, or redevelopment is complicated or prevented by real or perceived environmental contamination. Sites could include old utility buildings, former manufacturing factories, institutional properties such as schools, closed landfills, or vacant commercial properties. 73

84 Chapter Eight Quaker City Gear Works. The C & E Refractory site. Linfield Distillery. Nicolete Industries. The Keystone Coke Company. Underutilized industrial sites, as well as specific brownfield sites, are scattered around the county, with the main areas along the Schuylkill River and railroad lines. Figure 21 shows the location of these areas and identifies approximately 4,000 acres of land that might be appropriate for redevelopment, although much of this land does contain viable uses. In addition to these sites, there are other scattered locations around the county that may meet the definition above or contain underutilized industrial buildings. These should also be considered appropriate locations for redevelopment. Within these underutilized industrial areas there are approximately 80 brownfield sites, such as: Quaker City Gear Works This is a vacant metal manufacturing facility on Red Lion Road in Lower Moreland Township. C & E Refractory This site, where the buildings have been demolished, was used as a refractory for manufacturing fire bricks and other similar insulating materials. It is located in Upper Merion near the King of Prussia Industrial Park and has been partially remediated. Linfield Distillery This site in Limerick was used for distilling whiskey and gin and contains a number of large, thick-walled buildings used as bonding houses. There are over 3,000,000 square feet of buildings still standing on the site. Nicolete Industries This partially remediated property in Norristown was owned by a company that manufactured asbestos products. Keystone Coke Company This site, which has been cleaned up and is now vacant, once held the Alan Wood Coke plant. It is located in Upper Merion Township. These are just a few examples of brownfield sites in the county. A full brownfields inventory with detailed information about each site is maintained by the county Redevelopment Authority, which also runs the EPA s Brownfield Cleanup Revolving Loan Fund. There is no one cause that led to the decline of manufacturing and other uses on these sites, and there is no one reason why these sites have remained vacant or underutilized. Sometimes, the cost of environmental remediation and building demolition holds back redevelopment. In other locations, ownership or poor road access is the problem. At times, just the appearance of the buildings and the 74

85 Industrial Land Redevelopment perceived environmental problems turn off potential developers. Many sites are in floodplain areas, making the cost of redevelopment higher. Even local municipal zoning can be a problem, particularly when developers want to switch to a nonindustrial use. Fortunately, all of these problems can be addressed. Figure 21 POTENTIAL INDUSTRIAL LAND REDEVELOPMENT AREAS Industrial Land Redevelopment Plan Recently, because of the strong economy in Montgomery County and changes in environmental regulations, a number of brownfield and other underutilized industrial sites have redeveloped, particularly in the Montgomery Crossroads area. These include Tower Bridge in the Conshohockens, Metroplex in Plymouth, and the Philadelphia Newspapers plant in Upper Merion. Despite these successes, many brownfield and other underutilized industrial sites are still languishing. These sites need to be cleaned up or, if there is no contamination, given a clean bill of health. Then, new development should be encouraged and supported through a variety of economic development tools, provided this development fits into the character of the local community. Each of these steps is described in more detail on the following pages. There are many brownfield sites scattered around the county. 75

86 Chapter Eight You can reclaim industrial sites close to where everyone is, or you can pave over paradise with a parking lot. J. Brian O Neill Developer of the Millennium Site Brownfields Case Study Tower Bridge Due to its location near the I-476 and Schuylkill Expressway interchange, the Conshohocken riverfront has become an extremely hot location. This was not always the case, however. For many years, this 90-acre area, which formerly contained several iron and steel companies and old mills, slowly deteriorated. Through the cooperation of the Conshohockens, the county redevelopment authority, state agencies, federal agencies, and developer Tyrone Pulver Corporation, 2.5 million square feet of office and commercial facilities and a 275-room hotel have been proposed for development, with most of this square footage already constructed. When the project is fully realized, several thousand people will work at this site, compared with about 500 people in the 1960s. Tower Bridge. Addressing Environmental Concerns on Brownfield Sites With any brownfield site, one major question always comes up: what kind of contamination, if any, exists on the site? To answer this question, developers and municipalities should conduct an environmental audit, which is a comprehensive site analysis that examines the likelihood or extent of contamination on a site. Environmental audits should look for the presence of any contamination in the air, soil, or water; should identify the source of any contamination, such as a leaking storage tank; and should identify environmentally sensitive land on the property, such as wetlands. These audits generally follow three levels of investigation: Phase I Preliminary Site Assessment. Phase I assessments include a desktop analysis of property records, government files, and other paper documents. In addition, a walkthrough of the site will be conducted, as well as interviews of site personnel. Phase II Environmental Quality Survey. Phase II assessments are conducted when the Phase I investigation raises suspicions of potential contamination. These assessments determine whether some contamination exists and might include soil vapor tests, soil samples, magnetometer walkthrough, etc. Phase III Environmental Quality Assessment. Phase III assessments are quantitative analyses of sites that describe environmental conditions in detail. These assessments may be used for remediation plans and often include ground water monitoring, soil samples, air samples, and surface water samples. These audits should be conducted on any brownfield site where contamination is suspected, including landfills, dumps, properties near Superfund sites, former industrial sites proposed for residential or institutional use, sites with fill material, and places where fuel or equipment has been stored. A decade ago, it was very difficult to redevelop a brownfield site. Prospective buyers and financial agencies were concerned they would become liable 76

87 Industrial Land Redevelopment for cleanup but had no idea how much this cleanup might cost. To address this problem, the state passed the Pennsylvania Land Recycling Program in This legislation created uniform standards that allow alternative approaches for cleaning up a site. There are three basic approaches taken on a site removing contaminants, isolating the contaminants, or treating them on the property. The state legislation also provided environmental liability protection to any current or future people or organizations involved with a site for past contamination unrelated to these people or organizations. In addition, this legislation established standardized reviews and time limits for state agencies and created a grant program that includes the Industrial Sites Reuse Program (ISRP). Overall, the Pennsylvania Land Recycling Program has been a resounding success, making it easier to redevelop brownfield sites. The program has brought economic vitality back to derelict properties and led to the clean up of these sites while simultaneously redirecting development from greenfield sites. Federal, state, county, and local governments should continue to aggressively support this type of legislation and the brownfields redevelopment it inspires. Encouraging New Development Once a property is given a clean bill of health, it can be developed. Local communities should encourage this new development through a variety of actions, as outlined below. Using Tax Incentives and Subsidies. Because brownfield redevelopment can be expensive, tax incentives and subsidies may be necessary to make a particular development viable. These incentives and subsidies can take a variety of forms, including tax incentives through state programs, such as the Keystone Opportunity Zone and Enterprise Zone, or through local programs, such as tax increment financing. In addition, direct grants or loans can be given, such as Section 108 loans. Tax incentives and subsidies have been used extensively in the Conshohockens, Norristown, and Pottstown. State Programs for Redevelopment There are many state programs that encourage redevelopment, including the Enterprise Zone in Norristown and the Keystone Opportunity Zones in Norristown and Pottstown. For more information on these and other programs, contact the Pennsylvania Department of Community and Economic Development. The current contact information is or 77

88 Chapter Eight Brownfields Case Study Millennium In 2000, O Neill Properties broke ground for the development of the Millennium Corporate Center along the Schuylkill riverfront. This development on several older industrial properties will contain over 650,000 square feet of offices, 500 apartment units, a boathouse, limited retail facilities, and a park. The property totals approximately 30 acres and once contained 6 old manufacturing facilities. When fully developed, the Millennium will cater to information technology companies that prefer unusual settings and Millennium Park. the ability to work on a 24/7 basis. The total value of the project is about $120 million. In the past, the manufacturing companies at this location employed a little over 500 workers. When completed, the Millennium project will employ about 2,000 workers. Brownfields Case Study River Park Preferred Properties redeveloped the former Simpson paper mill in Miquon into 228,000 square feet of office space. The development involved the partial demolition of the existing paper plant, conversion of part of the warehouse into office space and the development of new office buildings. As a paper mill the site employed 425 workers. There are about 1,100 workers at the site currently. River Park. Providing Better Transportation Access. One reason the brownfield sites in the Montgomery Crossroads area have redeveloped is transportation access. The Metroplex complex, for example, is directly off of Route 476 and very close to the interchange of Route 476 and the Pennsylvania Turnpike. Many communities have recognized the importance of transportation access for industrial land redevelopment. Lansdale, in an effort to expand use at the old American Olean and Tile works, is planning to extend 9th Street into and through the property, thereby providing access from Broad Street, a major road in the community. In addition, the borough is examining the possibility of establishing a train station at this location. To improve access to a number of properties between a railroad line and the Schuylkill River, Pottstown is improving and extending a road, called Keystone Boulevard. And Norristown is proposing to extend Lafayette Street to the Pennsylvania Turnpike, where there will be a new EZ Pass interchange. Although road improvements are important for redevelopment of brownfields and other industrial sites, they must have a minimal impact on nearby neighborhoods and fit into the overall community. 78

89 Industrial Land Redevelopment Directing Business Locations. The American economy is very dynamic, and businesses are constantly looking for new locations. County, state, and nonprofit economic development agencies should direct these businesses to brownfields and other underutilized industrial land before they are directed to any greenfield sites. If no appropriate brownfield or other underutilized industrial sites are available, then these businesses should be directed to a greenfield site, provided the location is within a designated growth area and has adequate infrastructure. Assembling Land for Redevelopment. Sometimes, old industrial areas are chopped into many small pieces, making large scale redevelopment difficult. Local municipalities, working through the County Redevelopment Authority, can condemn and consolidate land to make it available for redevelopment. To go through this process, a community must first declare an area as blighted, then must prepare a redevelopment plan. Next, a formal redevelopment proposal with a designated developer should be prepared. Then, condemnation and consolidation of land can occur. Amending Zoning Ordinances. Most zoning districts that affect the county s underutilized industrial land were written to allow the industrial uses that historically existed on these sites. However, when redevelopment occurs, these antiquated zoning ordinances are rarely appropriate. Local communities should reexamine the zoning that applies to any brownfield or other underutilized industrial land located within the community and determine whether appropriate redevelopment can occur. If the community wants offices, preservation of historic mill buildings, or open space along a river, then the zoning should reflect these goals. Royersford, for example, adopted an Adaptive Re-Use District that allows a wider range of uses, reduced parking, and appropriate building setbacks for redevelopment. The Needleworks Building, an old mill building, is now being redeveloped with 47 apartments and 10,000 square feet of office space. Brownfields Case Study Metroplex The Goldenberg Group is developing a acre brownfield property bound by Chemical Road, the Blue Route, and the Norfolk Southern rail line. Most of the 750,000 square feet of big box retail space has been developed and occupied. A 461,000 square foot office on the eastern portion of the property is being developed. Hansen Properties started the Metroplex proposal in the late 1980s. The site contained various wastes including asbestos resulting from over a century of industrial activity at the site. The site also contained quarries filled with municipal waste and demolition debris. The total remediation cost was over $3.8 million and involved the removal of over 750 tons of waste. Five hundred and fifty people were employed at the Lavino Brick Works which occupied the site in When the retail portion of the Metroplex development is completed, 1,600 people will work there. Another 2,000 people could find work within the office facility. Metroplex Shopping Center. 79

90 Chapter Eight Brownfields Case Study Conti Mortgage The Conti Mortgage project involved the conversion of the 420,000 square foot Proctor and Gamble manufacturing facility in Hatboro into an office complex. Preferred Property redeveloped the site and leases the property. The lead tenant is Conti Mortgage, which occupies approximately 150,000 square feet with over 1,200 full time employees. When Proctor and Gamble and Richardson Vicks occupied the facility, 450 people were employed on site. In addition to Conti, the property contains other office tenants, a sports facility and a daycare center. The project was realized with financial assistance from the Commonwealth. Brownfields Case Study Netreach The Nicolete Manufacturing Plant in Ambler was once part of the world-renowned McKeesbee and Mattison Asbestos industry. One of the former factory buildings used to manufacture asbestos products has been redeveloped as office space (36,100 square feet) and warehouse space (46,900 square feet). The property sits on 4.6 acres and was part of the EPA Superfund site remediated in the early 1990s. The site was delisted from Superfund in The office space is occupied by Netreach, an internet applications company. Approximately 175 workers occupied the entire Nicolete facility in Netreach currently employs 90 people. Improving Infrastructure. In addition to roads, other infrastructure in local towns often needs upgrading and improvement before redevelopment can occur. West Conshohocken, which had no public sewers, installed a sewer system in tandem with the first office redevelopment proposed for the borough. Although industrial land redevelopment is important, communities must not get into a mindset where they take any development, no matter what is proposed. Instead, they must plan ahead for the redevelopment, taking into account neighborhood concerns and goals. In particular, municipalities must decide: - How the area should look in the future, - What land uses will fit into the community, - Where new roads and road improvements will be needed, - What historic structures, if any, should be preserved, - How tall buildings should be, and how far they should be set back from nearby residences; and, - What open space, trails, and greenways should be preserved. Conclusion Reuse of industrial land and brownfields redevelopment are some of the most important tools for smart growth. Most of the county s brownfield sites and underutilized industrial land are located in developed areas or growth areas with prime locations that offer either urban amenities or attractive views. Local communities, supported by the county, state, and federal governments, should make a concerted effort to encourage redevelopment of these brownfield sites. The county will continue to maintain and market a brownfields inventory while developing an effective one-stop shop for potential reusers/developers of the inventoried sites. Netreach 80

91 Chapter 9 Retail and Shopping Center Reuse First impressions are very important. For many neighborhoods and communities, their downtowns, shopping centers, and other retail areas create a first impression for visitors. Sometimes the impression is positive, particularly when stores are inviting, downtowns are vibrant, and shopping centers are up-todate. At other times, the impression can be negative, particularly when vacancies stand out, strip commercial dominates, or buildings are poorly maintained. Fortunately, Montgomery County has a strong and vibrant retail commercial sector, drawing shoppers from around the region; however, with a recent surge in retail construction activity, the county has seen more vacant stores and shopping centers. Redeveloping these vacant stores and shopping centers will improve local property values, make the community more attractive, and provide services to local residents. In addition, having new retail development locate on these existing vacant commercial properties means that undeveloped greenfield land may be saved from development. This chapter of the economic development plan discusses ways to encourage the reuse of vacant retail sites, first by examining existing conditions and then by outlining a retail and shopping center reuse plan that includes a needs analysis and a summary of reuse techniques. Existing Conditions The retail sector has gone through a few dramatic transitions over the past fifty years, with each transition strongly affecting county residents, businesses, and places. After World War II and into the 1950s, traditional downtown Main Street commercial areas were the dominant type of retailing, with Philadelphia, Ardmore, Jenkintown, Norristown, Lansdale, and Pottstown having the most substantial retail sectors. Other boroughs and downtown areas also played a strong retailing role. With the widespread use of cars and with new suburban development in the 1950s and 1960s, automobile-oriented shopping centers developed, particularly those with grocery stores. These were soon followed in the 1960s and 1970s by larger shopping centers containing discount department stores and enclosed malls with full-line department stores. By this time, most of the traditional downtown areas no longer held their dominant retailing Shopping areas help establish the image and character of a community. Traditional downtown commercial districts no longer dominate the county s retailing. The county is primarily served by regional malls, community shopping centers, and neighborhood shopping centers. 81

92 Chapter Nine Figure 22 SHOPPING CENTERS, MALLS, AND LARGE STAND-ALONE STORES IN 2000 role, with many of them suffering dramatic declines. This retailing pattern where the county is primarily served by regional malls, community shopping centers, and neighborhood shopping centers remains the predominant pattern today. However, beginning in the late 1980s, new big box retailers and category killer stores began to dominate new retail growth, further altering the retail landscape. These new national retailers are willing to enter markets already served by similar retailers, expecting to eventually take customers away from existing businesses. This process, which is driven by national financial issues rather than local demand, has led to significant new retail construction and an increase in retail vacancies. Reflecting this trend, the amount of shopping center space in the county rose from 26 square feet per person in 1996 to 30 square feet per person at the end of The U.S. as a whole had a ratio of about 20 square feet per person. During these five years, 18 brand new shopping centers were added in the county, while many other shopping centers had significant expansions and upgrades. Figure 22 shows the location of shopping centers Source: Montgomery County Shopping Center Inventory. 82

93 Retail and Shopping Center Reuse and large stand-alone big boxes in Montgomery County in These are classified by type of shopping center. Montgomery County has four major regional shopping cores. These are: - King of Prussia with the Court of King of Prussia and the Plaza of King of Prussia. - Plymouth Meeting with the Plymouth Meeting Mall, Ikea, and Metroplex. - Montgomeryville with the Montgomery Mall and a number of related big box centers, including Airport Square, General Hancock Square, Montgomery Square, and Water Tower Square. - Willow Grove with the Willow Grove Park Mall and a number of related big box centers, including the Plaza at Willow Grove Park, a K-Mart, and the Willow Grove Shopping Center. There are four major regional shopping areas in the county, including the Plymouth Meeting area. Although not as large in scale, the Cheltenham Square Mall and Cedarbrook Mall in Cheltenham also serve regional needs. The Pottstown area is served by the Coventry Mall in Chester County. The Upper Perkiomen Valley area is served by a number of large shopping centers near Quakertown in Bucks County. In addition, a number of stores or shopping centers, such as Suburban Square or some of the centers in East Norriton, can have a regional draw. In 2000, the county had 116 shopping centers, malls, or stand-alone big box stores. These totaled over 22,600,000 square feet. (To be included in these totals, shopping centers must have at least 30,000 square feet of area and stand-alone big box stores must have at least 60,000 square feet of area.) On top of this total, Montgomery County had nearly 6.3 million square feet of smaller shopping centers or small stand-alone retail stores, according to an MCPC analysis of Board of Assessment data. Retail businesses in downtown areas, in mixed use buildings, and in other unique situations are not counted in this total because of data limitations but add to the county s retail mix. In 2000, Montgomery County had 116 shopping centers, malls, or large stand-alone big box stores. 83

94 Chapter Nine Many vacant stores and shopping centers languish for a long time. Vacancy problems also affect strip commercial uses, especially uses on undersized sites or with poor access. In 2001 and 2002, the county added significantly more retail space, approximately 830,000 square feet. During these two years, the county also added about 16,400 new residents. These numbers translate to over 50 square feet of new retail space in 2001 and 2002 for each new resident, which is much higher than the 2000 ratio of 30 square feet per person. Significant new retail space includes the Route 422 Marketplace shopping center in Upper Providence, a theater and other stores across from the King of Prussia malls, and more retail at the Valley Forge Marketplace in West Norriton. Many smaller convenience stores, drugstores, and restaurants have also been built. In early 2003, a new super-sized Ikea store opened in the Marketplace at Plymouth. Retail Vacancies Since the advent of the shopping center, the county s downtown areas have struggled with retail vacancies. Nowadays, these vacancies are no longer limited to old-fashioned Main Street areas; instead, they have begun cropping up with more frequency in suburban-style shopping centers and strip commercial areas, particularly in older centers and stores. In the first quarter of 2003, Montgomery County shopping centers identified by Reis Reports data, representing about half of the county s total, had a vacancy rate of 7.6%, slightly above the national rate of 7%, according to a Philadelphia Inquirer article. The Philadelphia region as a whole had a vacancy rate of more than 8%, with some area counties approaching 15%. Normally, a rate of less than 5% is considered a tight market while a vacancy rate of 10% or more is considered significantly overbuilt. It is not possible to pinpoint the exact vacancy rate of all the retail businesses and shopping centers in the county but a few observations illustrate the problem that has occurred. Sometimes, stores leave one site for an alternative site that allows them to build a larger and more current building, creating a vacancy in their current site. For example, Genuardi s Markets left one site in Upper Merion for an alternative shopping center a couple of miles down the road, most likely because it felt its previous site was obsolete. At other times, this process of semi-obsoles- 84

95 Retail and Shopping Center Reuse cence occurs slowly over time as new shopping centers are added, making older ones less competitive. The county has many examples of this type of older shopping center, such as Logan Square shopping center in Norristown, Park Town Plaza shopping center in Limerick/Royersford, or English Village in Horsham. For some regional or national retailers, intense competition causes them to go bankrupt. Although new retailers fill some of this space, some space remains vacant for a long time. For example, the Meadowbrook Plaza shopping center in Harleysville has had a vacant or underutilized Jamesway store for over five years. Now that Ames has gone bankrupt and K-Mart is closing some local stores, more of this type of vacancy is occurring in the county. Heavy competition can also close brand new stores. Nowadays, national retailers are willing to go head-to-head, even when the local market might only be able to support one store. For example, a few grocery stores and a warehouse club store opened within a couple of years of each other in the Montgomeryville area. One brand new store, a Super Fresh, is now vacant. Although retail vacancies exist around the county, the largest concentration of vacancies at this time is around the Montgomeryville area. The Norristown area also has a number of significant vacancies. The number of vacancies currently in the county is not alarming but is a concern and could become worse as new shopping center development continues to outstrip population growth. Retail and Shopping Center Reuse Plan Often, retail buildings and shopping centers are only vacant for a short time, with the market filling the building or revamping the center. Sometimes, however, these vacant buildings and shopping centers languish for a long time, due to a variety of problems, including excess supply or limited demand for the location, size, or condition of the building. This section of the Retail and Shopping Center Reuse Chapter addresses this retail vacancy problem This big box store, built in 1999, was vacant three years later. Sometimes vacant retail buildings and shopping centers languish for a long time, due to a variety of problems, including excess supply or limited demand for the location, size, or condition of the building. 85

96 Chapter Nine by examining two issues: the need for retail facilities and methods of limiting prolonged retail vacancies. Vacant retail space is scattered around the county, often in active shopping centers. Figure 23 RETAIL DEMAND IN MONTGOMERY COUNTY IN 2000 AND 2025 Need for Retail Facilities Local municipalities face an ongoing dilemma. On the one hand, local developers and property owners frequently want rezonings for retail uses so that national retailers can enter a specific market, even if this market is already served by a similar business and can realistically support only one of these competing businesses. The new guy on the block hopes to knock off the older existing business. On the other hand, residents typically oppose more retail commercial development because of traffic, property value, and community character concerns. In other parts of the country and Delaware Valley, and to a certain extent in Montgomery County, many local officials in need of additional tax dollars have allowed extensive new retail development, leading to an oversupply in certain areas and significant and lingering vacancies of major shopping centers and enclosed malls. To avoid or lessen these problems, local municipalities should determine their expected retail commercial needs through a market analysis, as illustrated later in this chapter for the county and the county s subregions. These municipalities can then use this analysis as a starting point for their retail land use decisions, planning to generally provide enough retail to meet this expected demand, with some extra capacity to allow new types of retailing to enter the market. Communities or regions that ,098 households in 2000 x 16,650 dollars spent on retail goods per household in ,763,531,700 dollars spent county-wide on retail goods 2. 4,763,531,700 dollars spent county-wide on retail goods 240 dollars spent per square foot of retail space in ,848,048 retail square footage demanded in 2000 In 2000, the county had approximately 28,920,000 square feet of retail space. In 2025, holding all other factors constant but assuming there would be 336,554 households, the demand is for 23,348,434 square feet of retail space. 86 Sources: households is from the U.S. Census dollars spent on retail goods is from 2000 Consumer Expenditure Survey, with an adjustment for Montgomery County s median income of $60, dollars spent per square foot of retail is from Dollars and Cents of Shopping Centers households is from an MCPC analysis of DVRPC population projections.

97 Retail and Shopping Center Reuse decide to significantly exceed their expected retail demand should expect large vacancies in the future and should plan for these vacancies, following the strategies outlined later in this chapter. To help determine the need for new retail facilities in the future, this section examines expected retail demand in the county and subregions of the county by County-Wide Retail Demand As shown in Figure 23, Montgomery County in 2000 had much more retail space than demanded by its own population, with an estimated demand of a little less than 20 million square feet and a supply of nearly 29 million square feet. In fact, this supply of 29 million square feet is significantly more than the projected 2025 demand of 23.3 million square feet. However, with its extensive road network, Montgomery County is a regional shopping hub and meets regional shopping needs of many people beyond its borders. In particular, the Montgomery Mall, with many shoppers coming from Bucks County, the King of Prussia malls, with many shoppers coming from Chester and Delaware Counties, and the Cheltenham malls, with many coming from Philadelphia, all serve regional shopping needs. On the other hand, the Coventry Mall in Chester County serves the needs of shoppers in the Pottstown area. Figure 24 shows the primary trade area of regional shopping centers serving the needs of Montgomery County. Figure 25 shows the demand for shopping in Montgomery County when regional demand is Figure 24 REGIONAL MALLS SERVING MONTGOMERY COUNTY: 2000 Note: This figure shows the primary trade area of each regional mall/shopping area based on the retail square footage in each area, using Reilly s Law of Retail Gravitation. Although the King of Prussia Mall serves both super regional and regional needs, Figure 24 only shows the regional needs it serves. Figure 25 ADJUSTED RETAIL DEMAND IN MONTGOMERY COUNTY IN 2000 AND 2025 Retail Demand for Montgomery County Residents Only (From Figure 23) Retail Demand adjusted for Regional Demand in Regional Shopping Centers 2000 Retail Square Footage Demand 19,850,000 24,470, Retail Square Footage Demand 23,350,000 28,530, Existing County Retail Square Footage 28,920,000 28,920,000 Note: Regional demand has been calculated by taking the retail building square footage of regional centers and dividing this by the population within the trade areas in figure 24 to derive a per capita regional square footage number. This per capita figure has then been applied to populations outside of Montgomery County doing their regional shopping in the county and to Montgomery County residents doing their regional shopping outside of the county. For King of Prussia, it was assumed that 25% of the malls area serves super regional needs beyond the primary trade area, such as those coming from Philadelphia, New Jersey, foreign countries, and other locations. 87

98 Chapter Nine figured into the calculation, assuming that the building square footage of regional malls and shopping centers is distributed evenly on a per capita basis around the regions these places serve. To serve the regional shopping needs of shoppers coming from portions of Bucks, Chester, Delaware, and Philadelphia Counties, an additional 4.62 million square feet of retail space is needed within Montgomery County. Taking into account this regional demand, Montgomery County still has more retail square footage than currently needed, based on population, income, and consumer expenditures. Looking at 2025 and taking into account new population growth in surrounding counties, Montgomery County s retail square footage that existed in 2000 would be enough to serve the county s needs, if there were no vacancies. Since some vacancies would exist and the market needs flexibility, the county probably needs additional retail space by 2025, unless a new regional center is developed within the county s trade area, perhaps in central Bucks County or in North Philadelphia. Figure 26 PLANNING REGIONS IN MONTGOMERY COUNTY Regional Retail Demand Although the county currently has more than enough retail square footage to meet its current needs, it is possible that regions within the county do not. This analysis provides a broad overview and rough estimate of the retail demand and supply in twelve planning regions in Montgomery County shown in Figure 26. Figure 27 shows the estimated retail demand and supply in each region for 2000 and 2025 for stand-alone, neighborhood, and community shopping needs. Basically, all of the county s regions currently meet their need, while a few regions may need to add additional shopping center space by It should be noted that this information is a guide to local communities and regions. Some of these regions may choose to only meet local convenience and neighborhood shopping needs and may be willing to drive further for their community-level shopping in addition to their regional shopping. Regions that are the home of regional shopping centers and malls have a choice. These regions can decide that they have enough retail commercial uses and the ensuing traffic, or 88

99 Retail and Shopping Center Reuse Figure 27 RETAIL DEMAND IN MONTGOMERY COUNTY REGIONS 2000 AND 2025 Estimated Surplus Estimated Surplus Stand-Alone, or Deficit of or Deficit of 2000 Demand 2025Demand Neighborhood, Stand-Alone, Stand-Alone, of Region s of Region s and Community Neighborhood, and Neighborhood, and Residents for Residents for Retail Building Community Retail Community Retail Local Retail Local Retail Square Footage Building Square Building Square Stores 1 Stores 1 in Footage in 2000 Footage in 2025 Upper Perkiomen Valley Region 279, , ,000-53, ,000 Indian Valley Region 658, , ,000-41, ,000 Pottstown Region 1,008,000 1,347,000 1,805, , ,000 Central Perkiomen Valley Region 577,000 1,006, ,000-71, ,000 Spring-Ford Region 680,000 1,080, ,000-71, ,000 North Penn Region 1,697,000 2,041,000 2,560, , ,000 Norristown Region 1,488,000 1,702,000 2,961,000 1,473,000 1,259,000 Main Line/King of Prussia Region 2,274,000 2,377,000 2,964, , ,000 Horsham-Willow Grove Region 1,098,000 1,254,000 1,702, , ,000 Ambler Region 1,376,000 1,576,000 1,320,000-56, ,000 Conshohocken/Plymouth Meeting Region 637, , , ,000 58,000 Eastern Montgomery County Region 2,204,000 2,300,000 2,300,000 96,000 0 Note 1: Note 2: Demand for local retail stores in the planning regions for 2000 and 2025 was calculated in three steps. First the total demand of the residents in each region was calculated in the same manner as county demand, taking into account varying incomes and consumer expenditures in the region. Next, the amount of this demand that would be met by regional shopping centers was estimated. This was done by dividing the retail regional square footage by the population within the trade area of a particular regional shopping area to derive an amount of regional retail space per person that was then applied to the planning region s population. Finally, this estimated retail regional square footage was subtracted from the total demand to derive local demand. The stand-alone, neighborhood, and community retail square footage is based on the county s shopping center inventory and board of assessment data. The square footage of regional malls and shopping centers is not included in these figures. In addition, these figures do not include traditional main street retailers, which can add significant square footage in some places. they may choose to strengthen their regional shopping role, taking the risk that more vacancies may appear. The potential retail demand of each region is discussed below. Upper Perkiomen Valley Region This area essentially meets its current local shopping needs, especially when the Main Street commercial districts in the boroughs are taken into account. By 2025, this area will need some additional retail square footage; however, a proposed shopping center with a large discount department store would easily meet this 2025 demand. Indian Valley Region This area also essentially meets its current local shopping needs, especially when the Main Street commercial areas in the boroughs and Harleysville are taken into account, as well as the large community shopping center next to Souderton in Bucks County. By 2025, this region will need some additional retail square footage. 89

100 Chapter Nine Over time, some growing regions may need to add local shopping centers to meet the needs of new residents. Pottstown Region This region currently meets its local shopping needs and should in the foreseeable future, although the region could choose to strengthen its role as a regional shopping destination, perhaps with Pottstown Borough establishing some regional retail niches in its downtown area. Central Perkiomen Valley Region This region seems slightly underserved for local shopping needs for 2000, although Main Street commercial areas in Skippack Village and the boroughs may help it meet its local shopping needs. The area will need some additional retail square footage by 2025, possibly in the form of a community shopping center with a department store and grocery store. A proposed shopping center in Upper Providence Township could meet some of this future demand. Spring-Ford Region This fast growing region seems slightly underserved for local shopping needs for 2000, although the recent completion of Target and Lowes stores in Upper Providence more than make up for the deficit. By 2025, additional square footage will be needed, but this need would be met by the new Target and Lowes, a proposed shopping center across the street from these stores, and another proposed shopping center in Upper Providence. North Penn Region This region currently meets its local shopping needs and should in the foreseeable future, since excess supply is available. Norristown Region This region currently meets its local shopping needs and should in the foreseeable future, since excess supply is available. Main Line/King of Prussia Region This region currently meets its local shopping needs and should in the foreseeable future, since excess supply is available. Horsham-Willow Grove Region This region currently meets its local shopping needs and should in the foreseeable future, since excess supply is available. 90

101 Retail and Shopping Center Reuse Ambler Region This region essentially meets its current local shopping needs, especially when Ambler s downtown area is taken into account. By 2025, additional square footage may be needed, but this need should be met by a relocated shopping center in Upper Dublin and a proposed 352,000 square foot shopping center across the border in Upper Moreland that will serve Upper Dublin. Conshohocken/Plymouth Meeting This region currently meets its local shopping needs and should in the foreseeable future. Eastern Montgomery County This region currently meets its needs and should in the foreseeable future, especially when its many Main Street commercial districts are taken into account. Even if a region meets its overall needs, specific areas might benefit from new retail facilities, such as grocery stores or department stores. Figure 28 shows grocery stores in Montgomery County and the typical trade area of a one and a half mile radius. These stores and their trade areas have been overlaid with existing suburban development and designated growth areas from the Growth and Preservation Plan to identify potential areas for new grocery stores over 20,000 square feet in size. There are many areas that could potentially be served by grocery stores, such as Conshohocken/West Conshohocken, Franconia, Limerick, Skippack, and Upper Providence. Figure 29 shows the location of department stores, with the typical trade area of a four mile radius. The Central Perkiomen region might benefit from the addition of a department store. Other areas with undersized or outdated stores might benefit from the addition of new retailers, preferably in existing locations. Conclusion on Demand Overall, the county is currently adequately served by its existing malls, shopping centers, and retail stores. Even by 2025, the county s current retail centers, along with proposed retail centers, should generally be able to meet the county s needs, although some growing areas will need new places for local shopping where residents can buy groceries, household 91

102 Chapter Nine Figure 28 GROCERY STORES SERVING MONTGOMERY COUNTY AS OF 2000 (map shows stores 20,000 square feet or larger in size) Figure 29 DEPARTMENT STORES SERVING MONTGOMERY COUNTY AS OF Sources: Montgomery County Planning Commission Shopping Center Inventory, internet search of industry websites.

103 Retail and Shopping Center Reuse goods, drugs, and hardware. In addition, areas that are adequately served will most likely see new retailers locate in their community, as retailers continue to change to meet the needs of customers. Reuse and Rehabilitation of Shopping Centers and Strip Commercial Areas There are five general strategies communities can follow to try to avoid commercial vacancies and to deal with these vacancies when they occur. These are: requiring good design of shopping centers, matching retail zoning to demand, planning for retail vacancies of new space, allowing alternative uses in retail buildings, and considering new mixed use development in defunct centers. Require Good Design of Shopping Centers Too often, shopping centers are put in the wrong location or are poorly designed, with inaccessible parking, confusing driveway layouts, awkward connections to streets, unattractive and cheap building materials, poor visibility, poor stormwater control, inadequate landscaping, improperly buffered loading and trash areas, poor pedestrian access, and other similar problems. Over time, these design problems, which may have saved money initially for the developer or tenant, affect customers and their desire to come to the center, potentially leading to significant vacancies. To avoid these problems, shopping centers and other retail sites should be well-designed and constructed. They should not have cheap buildings or cheap site work, and certainly should not be designed for obsolescence in five to ten years. In addition to requiring good initial design and construction, local communities should require any rehabilitation of shopping centers and retail buildings to have good design. This could mean turning down proposals that are trying to squeeze too much development on too little land. Match Retail Zoning to Demand The best reuse of most shopping centers and strip commercial areas is a new retail use, possibly with some of the large national retailers that have entered the Philadelphia area market and are demanding new locations. To encourage Commercial uses and shopping centers need well-designed driveways, especially ones that are shared or interconnected. Commercial buildings should be attractive and designed to fit into the overall community. Shopping centers and malls should have extensive landscaping, good pedestrian connections, and adequate buffers, such as this sidewalk connection to the Willow Grove Mall. 93

104 Chapter Nine Reflecting demand and limited retail land, the Wynnewood Shopping Center in Lower Merion has been attractively renovated. this rehabilitation with new retail uses, local municipalities should carefully examine their retail zoning and requests for new retail commercial zoning. If they have too much land zoned for retail uses, then new retail uses will often go onto undeveloped sites instead of reusing existing vacant commercial land. The commercial needs analysis outlined above can help local communities determine their retail needs, based on their own population s characteristics. Some communities may want to conduct their own retail market analyses, as long as they recognize the larger retail market in which they fit. Municipalities should match the amount of land zoned for retail uses to the amount they want, given their goals and the amount they expect to need. In addition, communities should work together as regions on this issue, since retail shopping patterns extend beyond municipal boundaries. Lower Merion Township, which has a limited amount of retail land in an affluent area, has seen successful redevelopment of some of its shopping centers and strip commercial areas. Those communities that want to match retail development with local demand but do not want to conduct their own retail market analysis may want to consider one of the following approaches, possibly as a conditional use procedure or in response to a rezoning request: Requiring new large retail proposals to conduct an economic impact assessment to determine the potential impact on existing stores and shopping centers. Where markets are already saturated, these assessments would demonstrate that new shopping centers or mass-merchandise retailers would cannibalize existing businesses. Developers should pay for the assessments, but local communities should hire and control the consultant conducting the assessment. Local codes should contain standards for these assessments that allow communities to turn down proposals that will create chronic commercial vacancies in the community. Encouraging new retailers to occupy existing vacant space or to demonstrate that no space is available for them to occupy. 94

105 Retail and Shopping Center Reuse Plan for Future Vacancy of a Proposed Retail Development Even when the amount of retail land is limited to meet market demand, vacancies can crop up, given the dynamic nature of the retail sector. Recently, county communities have experienced the impact of the topsy-turvy retail world, with older retailers such as Hechingers, Builders Square, Ames, Bradleys, Jamesway, and K-Mart going out of business or significantly scaling back, while new retailers like Home Depot, Lowes, Target, and Wal-Mart enter the local market. In one dramatic case in Upper Merion, a Builders Square super store that was built in the early 1990s was razed a few years later for a movie theater and electronics store. Sometimes, retailers enter a market, build a store that has a limited expected life, and leave a vacant building a few years later. Communities can take a variety of approaches to address this problem, in consultation with their municipal solicitor: Requiring developers of large retail buildings and shopping centers to put money into an escrow account that would cover marketing costs, rehabilitation costs, or demolition costs in case the stores become vacant. This type of ordinance would have to be crafted carefully, allowing a certain amount of time for the market to fill the vacancy. Buckingham Township in Bucks County has created a regulation requiring demolition if stores become vacant for an extended time period. Encouraging property owners to create leases with big-box retailers that prevent these tenants from vacating a property while continuing to pay rent on this vacant property and thereby preventing the landlord from leasing to another tenant. This can be very difficult for developers to obtain on their own; however, a municipal ordinance requiring this guarantee may make it easier for them. Peachtree, Georgia has this requirement. Asking retailers to help find tenants for stores that are vacated so they won t simply stand empty. Evanston, Wyoming has followed this approach. All of these approaches would need to be Local municipalities should plan for future vacancies, even in brand new development. 95

106 Chapter Nine put in place before the retailer has vacated the premises. In addition, where vacancies are exacerbated by overly restrictive zoning regulations, communities should consider adjusting their zoning to make redevelopment feasible. The primary space in this underutilized shopping center in Norristown has been converted to bank and office space. Alternative Uses in Retail Buildings Despite the strategies outlined above, some communities may find themselves with vacant retail buildings. In certain situations, if the vacancies are not filled by regular retail uses, local communities may want to consider alternative uses for these vacant buildings, such as: Offices, particularly back-offices, Gyms and fitness centers, Movie theaters, Skating rinks or bowling alleys, Banks, Health centers, Post offices, Schools, Libraries, Museums, Art galleries, Personal service shops, Farmer s markets, Children s play areas, and Other similar uses. The most appropriate uses for these vacant spaces will depend on a variety of factors: the characteristics of the neighborhood, road access, the local retail market, the physical layout of the building, and the preferences of local residents. Any reuse must carefully consider all of these factors and must fit into the general character of the community. In Norristown, space in the Sandy Hill Shopping Center that was once occupied by a grocery store is now occupied by a bank and associated offices. In Upper Merion, a neighboring church will use another grocery store site. In Jenkintown, the old Strawbridge and Clothier building has been converted into offices and a restaurant. New Mixed-Use Development in Defunct Centers With larger shopping center sites that no longer work as retail destinations, it may be 96

107 Retail and Shopping Center Reuse necessary to completely rethink the uses and character of the site. One potential reuse is mixed use development. New mixed-use developments are very appropriate for old shopping center sites because they can: Provide a transition from commercial areas and busy roads to quieter residential areas, Create a sense of place in areas that may have previously lacked an appealing and coherent design, and Encourage walking and use of public transportation. Nationally, a large number of malls and large shopping centers have been transformed from vacant and abandoned eyesores to exciting mixed use projects. A few examples include: Mizner Park in Boca Raton, Florida, which replaced a failed shopping mall with a wide central esplanade lined with shops, offices, and apartments; Mashpee Commons on Cape Cod, Massachusetts, where a defunct shopping center was transformed into a Main Street commercial area with some service businesses, offices, entertainment uses, and apartments; and downtown Park Forest near Chicago, Illinois, which replaced a regional mall and is the process of being redeveloped as limited retail, offices, residential, a city hall, a cultural center, and a village green. Locally, a derelict open air shopping mall in Willingboro Township, New Jersey is being changed into the Willingboro Town Center, which will include retail uses, light industrial uses, offices, a library, age-restricted housing, a branch of the local community college, and green space. This type of mixed-use development would be very appropriate on most of the large vacant or underutilized shopping centers in the county. Local governments can encourage this type of development by providing the zoning for mixed-use development and by working with developers to create these mixed-use areas on defunct shopping centers. The state and other levels of government could encourage this mixed-use redevelopment with tax incentives, tax free mortgages, or other tools. Mizner Park in Florida is a mixed-use redevelopment of a failed shopping center. 97

108 Chapter Nine 98

109 Chapter 10 Pulling It All Together The Economy as a Whole To retain its strong economy, the county needs to attract and retain a diverse range of businesses by promoting a positive business environment, helping train workers, and removing barriers to workers reaching their jobs. For strong communities and neighborhoods, new businesses should locate in designated growth areas and existing developed areas, especially in downtown main street districts, vacant industrial land, and underutilized shopping centers. This chapter summarizes the recommendations from previous chapters designed to accomplish these goals, briefly discusses the connections between economic development and other elements of this comprehensive plan, and then concludes with a summary of implementation approaches. The Economy as a Whole Montgomery County s economy is extremely diverse and dynamic, constantly shifting in response to market pressures. Businesses within this economy are often making decisions on where to locate, where to invest, or where to open new satellite businesses. Figure 30 shows some of the locations most appropriate for new businesses, such as designated growth areas, development centers, underutilized industrial land, downtown areas, and vacant shopping centers. Encouraging continued strong economic growth while revitalizing main streets, industrial land, and shopping centers will be challenging. Each chapter in this plan lists methods to support this growth; a few of these methods are listed below. High tech, research, finance, health, insurance, services, manufacturing, retail, agriculture, entertainment, and other industries all add to the county s diversity. These industries can be supported in a variety of ways. For example, high tech industries need skilled workersgovernment and businesses can help provide these workers by improving education and expanding training programs while simultaneously strengthening the county s high quality of life to attract more of these workers. Industrial uses, on the other hand, need good flat land A high quality of life, including amenities like new trails, is necessary to attract young highly-educated workers who work the county s high-tech industries. 99

110 Chapter Ten A good business climate helps attract and retain businesses. for large single-story buildings and a wellfunctioning transportation system government and businesses can help provide this land and transportation system through zoning, road improvements, and public transportation improvements. Montgomery County has many advantages, including its location, accessibility, quality of life, educational levels, financial strength, skilled labor force, and stability. These strengths will be marketed to attract and retain businesses, while the county will work with Philadelphia and regional groups to promote and improve the Philadelphia area as a whole. The good business climate in Montgomery County must be retained by all the various government entities and economic development agencies in the county. These organizations will make businesses feel welcome in Montgomery County by offering efficient services, appropriately-zoned vacant land, and straight-forward development processes. To have a strong economy and good jobs for workers, the county must have a skilled workforce. Workforce training in the county will be strengthened by taking advantage of new technology, by continuing to consolidate services, and by tailoring more programs towards older workers, who will continue to grow as a percentage of the county s workforce. In addition, this system will address the needs of youth and emerging workers, transitional workers, and incumbent workers looking to change positions. One recurring labor force problem in the county is the ability of workers to get to their jobs. To make this easier, the transportation system must be strengthened with road improvements and expanded public transportation. In addition, more affordable housing should be provided, as well as more housing near employment centers. Day care, along with other important services, should be expanded. Unfortunately, the county s downtowns and main street retail districts are not as strong as they used to be. Although their role as a primary shopping destination will probably never return, these areas can find market niches and become more vibrant shopping districts. There are a 100

111 Pulling It All Together The Econony as a Whole Figure 30 LOCATIONS FOR NEW DEVELOPMENT New businesses should locate in downtown areas, underutilized industrial land, existing development centers, nonresidential portions of existing developed areas, or in nonresidential portions of designated growth areas. 101

112 Chapter Ten 102

113 Pulling It All Together The Econony as a Whole wide variety of tools, ranging from tax incentives to streetscape improvements, that can be used to revitalize the county s downtown areas. The county has many underutilized and vacant industrial sites that can successfully be redeveloped for a variety of uses, including offices, shopping centers, and housing. Extensive redevelopment of these areas is already occurring in the county, and this can be encouraged further through tax incentives, transportation improvements, zoning changes, and other methods. Recently, Montgomery County has seen an explosion in shopping center construction, leading to an oversupply of these centers. The county s need for new shopping centers by 2025 will generally be met by shopping centers that exist or are in the pipeline; however, some growing areas will need new shopping centers to meet the needs of their new residents. To avoid excessive retail vacancies in the future, local communities should try to match retail zoning with demand. They should also plan for future vacancies during the development process while allowing a variety of alternative uses for defunct shopping centers, such as offices, health centers, schools, mixed use developments, and other appropriate uses. Relationship of Economic Development to the Whole Comprehensive Plan Economic development, including industrial land redevelopment, main street revitalization, and shopping center reuse, does not occur automatically; instead, this economic development is intimately connected to growth trends and patterns around the county. The relationship of other plan elements to economic development is briefly described below. Vision Plan. This plan includes the Growth and Preservation Map, which shows designated growth areas, rural resource areas, and proposed open space. New businesses and jobs should locate in designated growth areas, development centers, and existing developed areas. Vacant and underutilized industrial land is an ideal location for redevelopment and new development. Public Review This plan was mailed to county municipalities and school districts for review, as well as abutting counties, municipalities, and school districts. In addition, a public meeting on the plan was held on November 18, 2003 in Ambler Borough. Community Facilities Plan. This plan outlines various methods of providing adequate facilities throughout the county, which is critical for 103

114 Chapter Ten The county s workforce needs attractive, affordable, and convenient places to live. One ideal place for new development is the county s existing towns. Improved highways and exanded public transportation are critical for economic growth. strong economic growth. Reliable energy facilities are necessary for all businesses but are particularly important for manufacturing industries. In the current high-tech environment, communications utilities have become ever more important. Good schools and day care are a must for a high skilled labor force. And sewers, water, emergency facilities, health care, and other community facilities all help local businesses remain vibrant and competitive. Housing Plan. The county s work force needs attractive, affordable, and convenient places to live. The Housing Plan discusses a wide range of methods for providing this housing. Land Use Plan. The Land Use Plan identifies appropriate locations for new retail, office, and industrial development that will be well-designed, will fit into the local community, and will function efficiently. Open Space Plan. This plan encourages the protection of natural features, expansion and improvement of parks, completion of a county trail network, continuation of farming, and preservation of historic properties. All of these efforts would improve the county s quality of life, making it easier to attract young, highlyeducated workers that are needed for today s high-tech economy. Transportation Plan. Transportation is directly linked to economic development. Historically, most economic growth has occurred where the best transportation networks exist. The county Transportation Plan recognizes the importance of transportation to economic development and lists a variety of projects that will improve the county s strong transportation system. Water Resources Plan. This plan addresses water supply, stormwater, and flooding issues, all of which can impact businesses and economic development. Flooding issues are particularly important for redeveloping the county s vacant and underutilized industrial sites, since so many of these sites are located in floodplains. Implementation Economic development is primarily a function of the private sector; but government decisions and 104

115 Pulling It All Together The Econony as a Whole programs do have an impact on economic development. Government s primary role is to welcome private businesses and encourage economic development in a manner that protects the high quality of life that exists in Montgomery County. One critical implementation tool is funding. Road improvements, public transportation expansion, training programs, promotional campaigns, streetscape improvements, loan programs, and many other economic development tools need adequate funding. This funding will come from a variety of sources, including the federal government, the state, the county, local municipalities, businesses, and nonprofit organizations. A second critical implementation tool is organization and cooperation. Economic development is much easier when the various players who affect the economy and businesses locational decisions work together or form organizations to encourage this development. There is a third critical element to economic development and this is attitude. Without a welcoming atmosphere for the business community that recognizes the needs of this community, it will be very difficult to sustain economic growth over the long term. Figure 31 lists the tasks, parties responsible for implementation, and general time frame for the Economic Development Plan. A strong economy requires the cooperation of many different groups and individuals. Conclusion Montgomery County has a strong economy based on its high quality of life, transportation network, business climate, and location. This economy can be strengthened over time with a portion of new economic growth directed to the county s older downtown areas, underutilized industrial sites, and vacant shopping centers. 105