how to recruit businesses that complement your … · greenberg development services benefits from...

HOW TO RECRUIT BUSINESSES THAT COMPLEMENT YOUR CULTURAL

ARTS DISTRICT

[email protected]

Greenberg Development Services

ECONOMIC BENEFITS

• Captures more tourism $

• Sales and property tax revenue

• Reuse of buildings

• Employ local residents.

• Connects residents to community and attracts “creative class”.

• Changes image


BENEFITS FROM DISTRICT

Florida:

• 30,000 businesses

• $50 M in revenue

• 6% of all businesses

Pinellas County

• 2,500 businesses

• 14,000 jobs


TYPES OF DISTRICTS

INSTITUTIONAL

• Museums

• Theaters

• Parks

NOCD

• Artists

• Events

• Smaller spaces


TYPES OF DISTRICTS

ENTERTAINMENT

• Music

• Movie Theaters

• Specialty dining

• Food

INDUSTRIAL

• Film and Music

• Entrepreneurial

• Design

• IT


COMMON PROBLEMS

• Not every town can support an arts district.

• Top down approach not based on local identity.

• Insufficient funding

• Inadequate infrastructure

• Not inclusive

• Districts are constantly evolving.


• Pioneer stage- low rent, vacancy, crime, edgy

• Incubator stage – Investment, destination restaurants, residential

• Vibrant stage - Recognition, safe, investment momentum

• Transitional stage – image change, loss of anchors, gentrification

COMMON PROBLEMS


BUSINESS RECRUITMENT COMMON PROBLEMS

• Traditional market studies can’t determine demand for art or cultural uses.

• Visitor sales are difficult to quantify.

• Insufficient critical mass or anchor tenants.

• Available space does not match demand or clients’ needs.

• Perception of business

district

• Lack of ready to move-in

space

• Space is too large or too

small

• Unrealistic prices

• Surrounding tenants

• Unmotivated or passive landlords

• Lack of commercial realtors

• Commissions

• Lack of qualified prospects

COMMON PROBLEMS



1. Identify market opportunities.

2. Evaluate strengths and weaknesses.

3. Improve physical infrastructure.

4. Develop financial Incentives.

5. Establish a business retention program.

BUSINESS RECRUITMENT PROGRAMGetting Started


Residents

Regional patrons

Visitors

UNDERSTANDING THE MARKET


CULTURAL ARTS MARKET

• Trade Area

• Demographic Profile

• Sales Leakage


TRADE AREA CULTURAL ARTS MARKET

• Visitor Bureau

• Intercept survey

• Focus group

• Lodging data

• Special events data


DEMOGRAPHIC PROFILE

• Age

• Income

• Education

• Lifestyle

• Gen Y- 70 M (10-29)• Boomers 76 M ( 55-69)• Ethnically and racially diverse households

DEMOGRAPHIC PROFILE


LIFESTYLES

• Hobbies

• Leisure activities

• Attitudes and

politics



LIFESTYLES

• Sophisticated Visitor• Latte and Laptops• Dorms to Diploma• Urban Pioneers• Museum Mavens• Affluent Homeowners


SUPPLEMENTAL DATA

• ESRI and Claritas Segmentation reports

•Survey of Public Participation in the Arts NEA

• Surveys


• Actual vs. Potential Sales.

• Shows whether residents’ retail needs are being met.

• Identifies strengths and weaknesses and opportunities for new retail.

• Does not measure demand for non-retail.

SALES LEAKAGE ANALYSIS

• Housing

• Office

• Arts and Craft

• Educational

• Recreational

• Entertainment

DEMAND FOR NON-RETAIL



BUSINESS ASSESSMENT

• Vacancies and deferred maintenance

• Obsolete selling space

• Underutilized upper floors

• Unrealistic sale or rent

• Skewed retail mix

• Underperforming retailers

• Parking

• Property owner motivation

COMMON PROBLEMS



•Buildings

•Redevelopment sites

• Streetscape

PHYSICAL ASSESSMENT

REDEVELOPMENT SITES

STREETSCAPE


• Types of uses• Location• Viability

BUSINESS MIX



TYPES OF USES

LOCATION OF USES


BUSINESS MIXLOCATION OF USES

• Business Visitations

• Business Surveys

• Business Roundtables

• Block Meetings

• Focus Groups

• Mystery Shopper

• “First Impressions

BUSINESS VIABILITY


CULTURAL ANCHORS

• Seats

• Price

•Audience

• Financial stability

LODGING

• Rooms

• Price

BUSINESS VIABILITY


• Financial incentives

• Image improvements

• Promotions and marketing

• Business skills

STRONG BUSINESS RETENTION PROGRAM

• State grants

• Local tax-based grants and

loans

• City fees reduction or

waivers

• TIF and Tax abatement

• Regulatory Flexibility

FINANCIAL INCENTIVES

GRANTS

− Acquisition/renovation

− Facades or Signs

− Upper-stories

− Marketing/ad campaign

− Relocation, Rent

− Energy

LOANS

− Banks

− USDA

− Slow money, Conservation Fund

− Foundations

− EDC



TECHNICAL ASSISTANCE:

• Demographic reports

• Resource guide

• Web site

• Mentors

• Energy Audits

• Design Assistance


• COMMUNITY FUNDS

• BUSINESS COMPETITION

• POP-UP PROGRAM

• PRE-PAYS

• CROWDFUNDING




IMAGE IMPROVEMENTS


PROMOTIONS AND MARKETING

BUSINESS SKILLS

• Workshops and Training

• Financing

• Mentors

• Publicity


• Vision and market

position

• Key projects and

desired niches

• Policies

• Procedures

BUSINESS RECRUITMENT STRATEGY

VISION and MARKET POSITION

To create a culturally diverse place that attracts a variety of audiences.

Uses reflect values and lifestyles of patrons.



• Catalyst projects

• Retailers

• Housing

• Incubator space

CULTURAL DISTRICT KEY PROJECTS AND TENANTS

• Restaurants,

Microbrews

• Specialty foods

• Housing

• Ed’s and Med’s

CATALYST PROJECTS

•Museum

• Art

galleries

•Theater

• Music

CATALYST PROJECTS

• Existing clusters

• Market study

• Surveys

• Consumer Trends

• Space constraints

DESIRED NICHE BUSINESSES

DESIRED NICHE BUSINESSES


• Work-life

• Artist

• Target Market

• Lodging


HOUSING

INCUBATOR SPACE

SHARED SPACE

• Master Lease

• Ad budget

• Consignment & leased floor area or departments

• Full-time employee


INCUBATOR SPACE

• Types of tenants

• Priority locations

• Committee responsibilities

• Property owner and Realtor Support

• Leasing guidelines

RECRUITMENT POLICIES


TYPES OF TENANTS

• Destination vs.

Impulse

• Complementary

vs Competitive

• Locally-owned,

franchise,

chain, start-up


PRIORITY LOCATIONS

• Site characteristics

• Property owner

support

• Compatible to

surrounding

businesses

• Market the District opportunities

• Market vacant properties

• Referrals and networking

• Contacting desired tenants

• Negotiations and Deal making

COMMITTEE RESPONSIBILITIES

DISCUSSION POINTS

• Leasing or sales objective

• Desired tenants

• Planned improvements

• Realtor’s Role

• Rent/incentives

• Timeframe for action

TYPE OF ASSISTANCE

• Information on rents and sales

• Marketing material

• Introductions to prospects

• Website listing

• Help tenants

• Financial assistance


PROPERTY OWNER SUPPORT

PROPERTY OWNER SUPPORT

CARROTS

• $$$$

• Public Recognition

• Technical or

financial assistance

• Options

• CID

• Purchase

STICKS

• Peer pressure

• Building codes

• Historic District

• Ordinances

• Eminent Domain

LEASING GUIDELINES

• Marketing

• Identifying

prospects

• Making the

Pitch

• Closing the

Deal

• Sign the lease

RECRUITMENT STRATEGY

MARKETING CAMPAIGN

PRODUCTS:

• Brochures

• Fact sheets

• Opportunity signs

• Web sites

• Tours

• Referral network

• Why locate Downtown?

• Market opportunities

• Site opportunities

• Incentives

• Testimonials


MARKETING PRODUCTS

Downtown Graphics Network

MARKETING CAMPAIGN

TOURS

• Broker Tours• Apartment Tours• Virtual Tours

WEB SITE


LOCAL BUSINESSES:

• Realtors

• Referrals

• Website

• Media

• Field work

FINDING PROSPECTS


FINDING PROSPECTS

NEW BUSINESS

• Trade shows

• Schools

• Community

• Biz Competition

• Incubator

FINDING PROSPECTS

CHAIN OR FRANCHISE

• Trade show (ICSC)

• Brokers

• Buxton, Retail Lease

Trac


• In-store evaluation

• Financial report

• Ad budget

• Lease constraints

• Customer profile

EVALUATING PROSPECTS


• Realtor or property

owner

• ER volunteers

• Direct mail

• Social media

• Invitation to TourGreenberg Development Services

CONTACTING PROSPECTS

TALKING POINTS:

• Market demand=$$$

• Site matches store

criteria

Downtown location:

− Financial incentives

− Special events

− Promotions Greenberg Development Services


• Practice on businesses.

• Set up tours or open house

events.

• Ask for a referral.

• Maintain contact through

newsletter, emails etc.



SIGNING THE LEASE

• Tenant upfit allowance

• Facade or sign

• Hours of operation

• Participation in downtown events

• Employee parking


KEY TO SUCCESS• Determine your own

vision

• Establish high standards

• Realistic work plan

• Business and property owner support

• Begin by focusing on what you have not what you are missing

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