Some Strategies for Small Town Downtown Revitalization
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1 Some Strategies for Sma Town Downtown Revitaization N. David Mider Presented to The IIRA 28th Annua Rura Community and Economic Deveopment Conference Springfied, IL March 8, 2017 N. David Mider. A Rights Reserved
2 THE BASIC STRATEGIC AXIOM: THINK PEOPLE BEFORE YOU THINK FIRMS N. David Mider 2
3 Three strategies wi be discussed: Attracting Peope and Nurturing Residents Job Deveopment: New residents who either do not need jobs, wi bring their jobs with them or can create their own good jobs Quaity of ife business recruitment In the downtown, heping start ups (they generate the jobs) and contingent workers (now 30% to 40% of the workforce) grow their businesses CSDs and IDs: Deveoping and strengthening your downtown s Centra Socia District functions and Innovation District functions Effective Regiona Links to Needed Resources: Strengthening organizationa capabiities and resources avaiabe to the oca downtown revitaization effort. N. David Mider 3
4 ATTRACTING PEOPLE AND NURTURING RESIDENTS DEVELOPMENT N. David Mider 4
5 The Pivota Economic Chaenge In our review of the iterature, attracting more peope and access to good jobs were identified as the pivota economic probems of sma and rura communities Without good jobs, peope wi neither want to stay in, or move to, these communities A favorite strategic response seemed to be, based on a custer anaysis, to try to recruit outside firms that can bring in ots of jobs That strategy, too often, has high costs, a ow ROI and wi fai too many sma towns. N. David Mider 5
6 Whie most American aduts do not want to ive in a rura area, a very significant percentage do! N. David Mider 6
7 Extrapoating from the Truia survey data Most Americans, today, sti prefer iving in a suburban area. But 22% prefer urban iving, and 28% prefer sma towns and rura areas. Converting some of those percentages into popuation numbers heps convey fuy the survey s findings: 28% means that about 69.3 miion American aduts prefer iving in rura areas. That s greater than the entire popuation of the UK or Itay VERY IMPORTANT: About 7% or 17.3 miion American aduts woud ike to ive in a rura area, but now don t. That s greater than the entire popuation of Greece, Hungary or Sweden. N. David Mider 7
8 Conventiona wisdom: Miennias a fock to hipster urban areas. But, studies found: Most of today s Miennias want to ive in suburban areas or sma towns and rura areas*: 37 percent want to ive in cities 36 percent prefer the suburbs 23 percent want to ive in sma towns and rura areas Additionay, more are ikey to do so as they nest and have chidren And more may do so when they approach retirement. The opportunity to recruit new residents wi continue into the future. Can it be reaized? *See: N. David Mider 8
9 One soution: Attract residents who do not need jobs, e.g., Seniors with ampe retirement incomes The 50+ age segment is 100 miion strong, growing. They contro 70% of the nation s disposabe income Gehring, NE, is attracting retired ranchers and farmers. Many of its tourists are good prospects Superior, NE, has attracted retired former residents Meredith, NH, is seeing second home owners turn into fu-time residents when they retire Adequate heathcare services are critica. Second home owners Feasibe if big metro area is within a 2.5 to 3.0 hr drive; creatives are a big potentia market segment. N. David Mider 9
10 Others wi bring or create their jobs. For exampe: Knowedge/Creative Workers : they tend to put ifestye opportunities ahead of job opportunities. No hard data, PROBABLY just as in the genera popuation, a significant percentage of them prefer sma town rura ives. There are countess exampes of this. Boomers and Their Rebooters: Among those who most ike sma and suburban towns Accounted for 25.8% of new entrepreneurs in 2014, compared to 14.8% in 1996 They aso have a sighty higher eve of entrepreneuria activity than the 20 to 34 year od group, which accounted for 24.7%. N. David Mider 10
11 Don t count any age group out The preference for iving in the suburbs and countryside over urban areas is strongest among Baby Boomers (seniors) and Gen Xers. They aso have the most money! But, even most Miennias now want to ive in burbs and sma towns. Aso, 26% see themseves as rura or sma town foks Many urban Miennias can be expected to move as they marry and have chidren and as rura and sma town opportunities increase. N. David Mider 11
12 To penetrate this pro rura- sma town market segment, a town needs Job opportunities for those who need them Attractive, affordabe housing (peope buy on the fringe or beyond because of ower prices) Good quaity of ife amenities (schoos, viabe Main Streets, attractive parks and pubic spaces, scenic views, ow crime, etc.) Adequate heath care services An adequate broadband pipe (critica for job creation, heath care, education, entertainment). N. David Mider 12
13 Nonempoyer businesses are increasing in Iinois and US (chart from pubication by Tessa Conway and Steven Deer) N. David Mider 13
14 The Contingent workforce: asset or iabiity Now accounts for as much as 40% (depending on definition) of the overa workforce and growing In urban, suburban and rura areas Bue and whie coar workers incuded Many of them are mature creative/knowedge workers who ost reguar jobs Others are buiding careers Areas in which contingent workers do not do we wi suffer Conversey, if they prosper, so wi their towns. N. David Mider 14
15 The Internet shoud be a big asset!!! FOR CUSTOMERS AND JOBS IT ENABLES BUSINESSPEOPLE AND WORKERS IN SMALL AND RURAL COMMUNITIES TO SUCCESSFULLY OPERATE IN REGIONAL, NATIONAL AND EVEN GLOBAL MARKETS N. David Mider 15
16 Better Use of the Internet Eary hopes that the Internet woud make more businesses ocation free are far from being fuy reaized Many areas had no or poor broadband access Too many sma business peope have not known how to effectivey use the Internet changing as internet savvy younger age cohorts get oder Powerfu web-based job training, teepharmacy, teemedicine, freeancer job marts (e.g., Freeancer, Eance, Upwork, Fexjobs), fundraising programs were sow to deveop This is changing, but the pace of change must increase. N. David Mider 16
17 MISSOURI STAR QUILT CO N. David Mider 17
18 MISSOURI STAR QUILT CO Company Info $20 miion annua saes 200+ empoyees Its Town, Hamiton, MO Popuation: 1,711 Median Income: $28,214 Owns 20 buidings; has B&M store Part owner of three restaurants Sends thousands of packages daiy ORDERS COME VIA INTERNET Average Income: $42,555 Have Bach degree+: 6.6% Cosest big cities: 47 mies to Saint Joseph 62 mies to Independence N. David Mider 18
19 Vermont Country Store: an omnichanne rura retaier Vermont retaier with arge cataog and e- commerce operations as we as shops in Weston (pop: 566) and Rockingham (pop:5,282) Started in 1945 as a cataog retaier Peope typicay spend 30 to 90 minutes there Aso major stops for tour buses (tourist season in VT runs about 9 or 10 months of the year) N. David Mider 19
20 Remote Jobs/Teecommuting Remote job istings have recenty grown the most in the foowing five job categories: Mortgage and Rea Estate HR and Recruiting Accounting and Finance Pharmaceutica Education and Training BUT known Lone Eages are in a ot of other fieds There are at east 25 sites for finding remote jobs, e.g. 1. FLEXJOBS ( WE WORK REMOTELY ( WEWORKREMOTELY.COM/) 3. REMOTE.CO ( REMOTE.CO/REMOTE-JOBS/) 4. REMOTIVE ( REMOTIVE.IO/) 5. SKIP THE DRIVE ( N. David Mider 20
21 Target Tourists and Former Residents Convert tourists into oca residents and oca businesspeope through targeted quaity of ife recruitment programs This is happening organicay now to some degree Organicay, there now is some return of former residents. Superior, NE, shows active, targeted programs can reay boost resuts Miennias eaving today sti may be future sma town assets, if they return with more skis, knowedge and resources. N. David Mider 21
22 CENTRAL SOCIAL DISTRICT (CSD) FUNCTIONS: They provide the connecting tissues that attract and bind peope to their communities Are often becoming more important than traditiona CBD functions N. David Mider 22
23 Your CSD is The downtown area with activity venues that faciitate peope having enjoyabe experiences with other peope, usuay reatives and friends, but, importanty, sometimes strangers. N. David Mider 23
24 Some CSD Components: (EN = entertainment niche) Housing Movie theaters (EN) PACs (EN) Concert Has(EN) Museums (EN) Art gaeries (EN) Arenas (EN) Stadiums (EN) Senior centers, community centers (EN) Pamper niche venues (gyms, nai & hair saons) Restaurants and drinking paces (EN) Parks/pubic spaces (EN) Ice cream parors; pizza, hot dog/sausage joints (EN) Paces of worship Socia cubs, (EN) Catering has (EN) Pubic markets (EN) Schoos N. David Mider 24
25 An entertainment niche is a critica subset of the CSD. It has four major eements: Forma Entertainment venues Parks and Pubic Spaces Movie Theaters Restaurants and drinking paces N. David Mider 25
26 Forma Entertainment Venues incude theaters, PACs, museums, arenas, stadiums, etc. They certainy can be strong assets, but: They are expensive to buid They are expensive to operate Many exist under year to year threat of insovency. Advocates are subject to the New Large Construction SWOON Weston Payhouse, Weston VT Legacy of Pains Museum, Gehring, NE N. David Mider 26
27 Parks & pubic spaces are often far better strategic choices than forma entertainment venues* because they: Are usuay much cheaper to buid Are much cheaper to operate and maintain Draw many more visitors Have far fewer user frictions *PACS, theaters, museums, arenas, stadiums, convention centers N. David Mider 27
28 Mitche Park in Greenport, NY year round popuation 2,200 Has a strong fow of tourists in season (many shops cose in winter) The park has an antique carrouse, marina and winter skating rink on a waterfront ocation Cost about $14.9 miion to buid Costs about $1 miion/year to operate. Most of the costs are covered by user fees Reportedy gets about 390,000 visitors/year N. David Mider 28
29 Sma Town CSD strengthening efforts shoud first focus on restaurants They need reativey sma market shares to be viabe They have reativey ow rent and abor costs Can be advanced by recruitment, marketing and start-up support. Sherwood, WI Chester, NJ N. David Mider 29
30 Downtown movie theaters are treasures, but under constant threat A cosed cinema is a terribe oss! A viabe rescue pan shoud be ready to go. They draw about 50,000 patrons/yr/screen They are affordabe They are open days/ evenings/weekends They have reativey few user frictions But, they provide a sma part of movie studio revenues The marketing patform they provide is what is keeping the studios connected Most movies are watched at home cinema attendance down. N. David Mider 30
31 Sma Town Resources and Organizations The Essentia Regiona Program Connections for Sma Towns N. David Mider 31
32 Loca Organizationa Assets Loca Government essentia! Informa groups of business and community eaders they need to be empowered They need organizationa exoskeetons BIDs, LDCs, etc. propery adapted Ø For exampe: Some BIDs in NYS and MSDs in NC used mainy to raise program and project funds Ø EDOs with itte or no paid staff (most sma downtown EDOs do not require a fu-time staff!) But, informa or part time staff must be competent Access to outside knowedge and experience is vita. N. David Mider 32
33 Most of the probabe revitaization probems cannot be resoved just with oca eve organizations and resources! County and regiona programs specificay designed to hep sma downtowns revitaize are needed! There aso needs to be a pug and socket connection between county/regiona programs and each sma town s revitaization effort! N. David Mider 33
34 THAT S IT, AND THANK YOU! I WELCOME YOUR COMMENTS EITHER IN PERSON OR AT dmider@gmai.com N. David Mider 34
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