Introduction 3

CONTENTS Welcome to Retail 1-2-3: 1 Introduction

A WORKBOOK FOR LOCAL OFFICIALS AND COMMUNITY LEADERS 3 Chapter 1 • Planning for Retail Development

17 Chapter 2 • What Do You Want From Retail? istorically, economic development has meant attracting and retaining major corporate and

manufacturing jobs for a community, with less emphasis on retail potential. Indeed, for 39 Chapter 3 • What Do Retailers Want From You? Hgenerations, rooftops followed jobs and retail followed the rooftops. However, as global 57 Chapter 4 • Organizing for Retail Success forces reduce America’s industrial and manufacturing jobs, communities are looking to the growing 71 Chapter 5 • Measuring Success and Looking service and retail sectors to strengthen local economies. Simultaneously, the face of retail is changing Ahead with the modern tastes and needs of shoppers, retailers, and developers. Terms and expressions — 81 Chapter 6 • Resources “the shopping experience,” “big box,” and “lifestyle center” — unheard of 20 years ago, are today a part of our lexicon. Without a clear understanding of how retail fits into economic development in the new millennium, communities can find themselves at a competitive disadvantage.

Many communities seek economic development assistance, particularly with growing their retail options. Recognizing that retail development, economic development, and redevelopment are vitally important to the future of commu- nities, the Campaign for Sensible Growth, International Council of Shopping

Centers (ICSC), Metropolitan Mayors Caucus, and Metropolitan Planning

Council, worked cooperatively to produce Retail 1-2-3: A Workbook for Local

Officials and Community Leaders. This guidebook harnesses the experience, resources and expertise of ICSC and its members, and the policy research, con- A current trend in retail development, particularly in down- town settings, mixed use maximizes a property’s potential by pairing retail with residences, offices, or other uses. This tacts, and regional perspective of the Planning Council, Caucus, and Campaign. mixed-use development in Highland Park, Ill., reflects the community’s goals and plans. Retail 1-2-3 will introduce you to the importance of planning and setting, as well as to many of the major trends, trouble spots, and other aspects of retail development. 2 Retail 1-2-3

etail 1-2-3 is a toolkit for local elected and appointed officials, citizen leaders, and the develop-

ment community to help attract and retain valuable businesses while honoring the unique Rvision and goals of local governments. Retail 1-2-3 is the third in a series of workbooks to help local governments. Sensible Tools for Healthy Communities, released in 2004, leads local and elected

officials through the development process using 10 principles of sensible growth. Planning 1-2-3,

released in 2006, is a step-by-step guide to comprehensive planning in Illinois.

Retail around Metra station in Elmhurst, Ill., provides easy, walkable access for residents and attracts shoppers from other communities.

INCLUDED IN RETAIL 1-2-3: Chapter 1, “Planning for Chapter 2, “What Do You Chapter 3, “What Do Chapter 4, “Organizing Chapter 5, “Measuring Chapter 6 offers an exten- Retail Development,” Want from Retail?,” Retailers Want from for Retail Success,” offers Success and Looking sive list of resources for highlights the value of stresses the importance You?,” outlines the ways a a thorough explanation of Ahead,” explores different organizations to contact incorporating retail into of setting clear and well- community can improve organizational structures means by which your for assistance and appen- your community’s eco- informed goals. A thor- its place in the market. By for retail development community can evaluate dices with valuable nomic development plan. ough explanation of understanding the actors that can lend clarity, its progress. This chapter information. It details the basics of retail’s four Rs — recruit- involved, importance of efficiency, and predictabil- provides valuable case writing an economic ment, retention, revitaliza- clarity and efficiency, and ity to your community’s studies of successful development plan with an tion, and replacement — prudent use of tangible efforts. This chapter also retail development in dif- emphasis on retail, demonstrates why all and financial incentives, explores the art of retail ferent kinds of communi- including conducting an retail development is not a community can get the recruiting. ties and examines future economic baseline the same. This chapter retail it wants without trends to watch that analysis and market also explores current sacrificing its goals or may impact your commu- assessment, which is the trends in retail develop- integrity. nity’s goals. first step toward retail ment as well as the differ- success. ent types of retail. 3 Planning for Retail Development • Retail 1-2-3

Planning for Retail Development 3

1. Planning for Retail Development WHAT TO GAIN FROM THIS CHAPTER: * Understand how retail fits into an economic development strategy. ncorporating retail into a larger comprehen- An economic development plan is the place to sive plan will enable your community to more begin contemplating the appropriate type and Learn the basics of writing an economic Icohesively manage the interrelated elements location of retail, always remembering that * development plan with an emphasis on retail. of land use, natural resources, transportation, demographics, geography, and infrastructure will • Develop a vision statement and goals. housing, and economic development. Recruiting drive the answers. An economic development • Conduct an economic baseline analysis. or retaining the retail you want requires prioritiz- plan can either be a stand-alone product or an • Conduct a market assessment. ing your goals, analyzing your community’s cur- element of a larger comprehensive plan. An eco- s shopper intercept surveys rent market and market potential, and develop- nomic development plan is generally more thor- s leakage analysis ing a pragmatic strategy. This chapter will illus- ough — it provides greater specificity and a mar- s trade area analysis trate the importance of clarity and specificity, ket assessment that accounts for local nuances s additional questions highlighting examples from Austin, Tex., and — than the economic development element of a • Develop strategies for economic development. Portland, Ore., as well as the basics of how to comprehensive plan. • Develop an action plan. plan for retail development.

* Understand economic development as a compo- The bulk of this chapter will focus on economic nent of comprehensive planning. RETAIL’S ROLE IN ECONOMIC development plans that emphasize retail. • The disadvantages of planning for economic Economic development as an element of com- development in a vacuum. DEVELOPMENT prehensive planning is discussed near the end of the chapter. Planning 1-2-3 covers the full range of Retail recruitment and retention are components elements needed to draft a comprehensive plan of a comprehensive economic development and is a valuable resource for any commu- strategy. Providing retail opportunities is impor- nity seeking to better manage its future. tant to local communities because it means giv- ing residents access to goods and services, expanding sales tax revenue to support local services, and enhancing the identity of the area. WRITING AN ECONOMIC The type of retail your community desires and DEVELOPMENT PLAN what is realistically attainable depends on many factors, including the local industrial base, trans- very community offers unique assets portation, and housing stock. Planning for retail Eand challenges: some face serious disin- growth without accounting for other sectors of vestment and population loss, which gener- your economy (and vice versa) leads to uneven ally deters retail, while others are growing development patterns. rapidly and need to focus on channeling retail to appropriate parts of town. An eco- nomic development plan should outline a blue- The Glen, in Glenview, Ill., is a 1,121-acre mixed-use district with new print for your community’s future economic homes, offices, and retail space, developed on the site of the former Glenview Naval Air Station. The Glen is the outcome of a comprehensive activity. planning process. 4 Retail 1-2-3

Important Tip: Be realistic about market potential and market areas Realistic expectations are important. For Whether it is an end in itself or an element of a See Appendix A, pg. 83 for an expanded set of example, your community wants a large shop- larger vision, a good economic development suggestions for the elements of an economic ping complex. But can it support one? That plan will allow you to create realistic goals and development plan. depends on the market potential of the store expectations regarding economic development and the site. potential and help municipal officials understand the complexities of retail development early on. 1. Develop a vision statement and goals A good way to keep the planning process realis- A project’s market potential is defined by sev- tic is by involving such stakeholders as commu- eral factors, only one of which is population. Vision statements are generally broad and encap- nity residents, major employers, and developers. Market areas are a complex combination of sulate collective aspirations for a community’s travel time, competition, and population with- future. in specific geographic boundaries. Consumer expenditure data, proximity to major roads, An economic development plan will outline com- traffic counts, and other factors also matter. munity intent and goals to potential developers The goals of an economic development plan will and retailers and to the community at large. vary among communities, depending on local Retailers do not like surprises, and an economic resources, capabilities, and desires. It is impor- Oak Brook, Ill., has only 8,835 people, and so development plan improves predictability. The tant to understand your community fully before could never support Oakbrook Center, the community that can guarantee a standardized establishing economic development goals. nation’s largest open-air shopping center, by review process will be in a better position to itself. However, easy access from major roads attract the development it wants. Likewise, and other population centers generated great because a plan establishes what your community market potential. does not want, you save time and energy by dis- 2. Conduct an economic baseline couraging proposals that are clearly incompatible analysis with your interests. Prospective developers and retailers will need detailed information about your community The vision statement for the Village of A plan will also set the stage for districts with regardless of whether that information is tied Northbrook, Ill.: specified purposes or redevelopment activities. directly to retail. An economic baseline analysis explores job trends by sector, existing labor force “Our common economic development vision The creation of an entertainment district, mixed- use waterfront, transit-oriented restaurant and characteristics, local and regional access to is that the Northbrook community will foster retail area, and other special districts often transportation and external goods and services, an attitude and process that continually requires substantial preparatory work such as assessment of quality of life, unemployment strives to maintain and enhance a diverse tax zoning, infrastructure improvements, or land patterns, inventories of vacant or underutilized base mix of retail, office, and industrial busi- acquisition. By setting goals in an economic land, and government regulations and permitting procedures that might affect a retailer or retail nesses to ensure the resources to support development plan, your community will have a clear idea of the steps needed to realize its developer. the high quality public services that our com- vision. munity deserves.” Planning for Retail Development 5

The Internet offers a wide “It is vital to understand the array of demographic research tools, some of suburban business district’s which can be very position and potential in An economic baseline analysis need not be an Communities focusing on retail development cost-effective. expensive undertaking, though professional should include market assessments as part of Claritas • the market vis-à-vis other services are available. A number of low-cost their economic development plans to provide www.claritas.com competing districts in the demographic research tools that provide some assurance the plan’s vision and goals will DemographicsNow • www.demographicsnow.com region. The essential extensive information about a trade area are adhere to local and regional market conditions. Growthink • foundation for any strategic available on the Internet. You might also focus Market assessments examine factors such as www.growthink.com on a few key neighborhoods, rather than the household income, housing, traffic patterns, and plan for reinventing a LISC MetroEdge • entire municipality. current retail sales — both locally and in nearby http://metroedge.lisc.org suburban business district towns — to measure leakage of local buying Scarborough Research • is an understanding of the power. www.scarborough.com demographic and market The baseline analysis will reveal opportunities Social Compact • www.socialcompact.org trends.” and constraints for your community. According SOURCE: URBAN LAND INSTITUTE, TEN Urban Markets Initiative • PRINCIPLES FOR REINVENTING to Planning 1-2-3, these “will be affected by your AMERICA’S SUBURBAN BUSINESS community’s geographic location in the region, www.brook.edu/metro/umi/htm DISTRICTS amount of available land, size, type of physical infrastructure, amenity levels, and desires of the citizenry, among others.” The strategies and action plan that you develop should reflect these opportunities and constraints, but also take into account your community’s capacity to address them adequately. Economic development goals often include: • Expanding and diversifying 3. Conduct a market assessment the local economic base. • Retaining and strengthening Local officials who want more or better stores existing local businesses. first need to put themselves in the shoes of the retailers: Why should they want you? Whether • Initiating partnerships with the need is for large-scale retail, neighborhood local businesses and educa- tional institutions to encour- shopping centers, locally owned businesses in a age economic development neighborhood retail district, or town center rede- training. velopment, cities and villages must study them- selves — determining strengths, weaknesses, • Capitalizing on location and potential for improvement — while also Big Box retail, such as this Home Depot on Clinton Street in Chicago, can generate significant amounts of advantages, such as trans- determining the type of retail needed and its new tax revenue. However, it can also lure shoppers away from pre-existing businesses, particularly locally portation access or recre- location. owned shops. By researching your market area and making informed decisions your community can ensure ational amenities. it gets the retail mix that it wants. 6 Retail 1-2-3 V I L L A G E

O F

L A

G R A N G E What’s your economic baseline? • Unemployment patterns • Inventories of commercial, industrial, and insti- Analyzing a community’s economic baseline is tutional land within the jurisdiction that is essential because the community is positioning vacant or significantly underused. Such invento- itself among other local governments. The ries identify the size of sites, public services and analysis should include broad economic trends, facilities, and site constraints, such as location the local business mix, land supply, labor force, in a floodplain, steep slopes, weak foundation and other economic characteristics. The analy- soils, or environmental contamination (i.e., a sis is dictated by the types of businesses and brownfield) industries the local government wishes to • Assessments of organizations within the local attract and retain. community that could be used for encouraging economic development • The potential for cooperation with other local The following studies are typically part of an governments economic baseline analysis, each providing a clearer picture of what the community can offer. • Adequacy of the existing and projected housing stock for employees of existing and potential • Job trends by industry sector, and identification businesses of businesses that could reasonably be expected to locate within the local jurisdiction • Assessments of regulations and permitting pro- cedures imposed by the local governments on • Existing labor force characteristics and future commercial and industrial enterprises and insti- labor force requirements for existing and poten- tutions, and their effect on the costs of doing “Going after retail tial commercial and industrial businesses in the business, and on the attraction and retention of state and the region By surveying shoppers, such as this woman strolling with her child in jobs and firms development with- downtown La Grange, Ill., communities can discover critical infor- • Local and regional access to transportation and out first having a mation about consumer preferences for specific retail areas. external markets for goods and services, includ- SOURCE: PLANNING 1-2-3 strong and effective ing natural resources, technology, education, economic develop- and human resources ment strategy is like • Assessments of quality-of-life factors, including schools, colleges, parks and recreation, access making frosting for to health care, and cultural institutions a cake when you • Opinions of the public and business leaders — don’t yet have any obtained through surveys, public hearings, or flour.” outreach to local businesses — regarding the Ivan Baker, Economic appropriate role of the local government in eco- Development Director, nomic development and desired types of eco- nomic development Village of Tinley Park, Ill. Planning for Retail Development 7

SHOPPER INTERCEPT SURVEYS

Gathering basic information about shopping pat- One approach for a shopper intercept survey is for participants to rank various aspects of a terns from area residents, shoppers, and employ- community’s retail opportunities as “strong,” “average,” or “weak.” ees will help you assess your market strengths and weaknesses. There are many affordable ways to do this. Category Strong Average Weak

One technique to better understand target mar- General appearance kets is a shopper intercept survey, where individ- Range of retail stores and goods uals are questioned about their community, including what they like and dislike about the Range of “quality” restaurants shopping environment. While many respondents will invariably express a desire for stores that are Range of personal services unrealistic for their communities, the technique Traffic flow and circulation can still yield valuable information about shopper buying patterns, including preferred Parking availability location. The survey can be done by mail, telephone, or in-person. Availability of business services Retail development programs

“Going after retail Adequate hotels/motels development with- Adequate conference/meeting facilities out first having a strong and effective Cultural activities and facilities economic develop- Other entertainment options ment strategy is like making frosting for a cake when you don’t yet have any flour.” Ivan Baker, Economic Development Director, Village of Tinley Park, Ill. 8 Retail 1-2-3

LEAKAGE ANALYSIS The next step is to compare local retail expendi- communities were shopping there. During 2004, tures to estimates of potential expenditures. however, the city suffered significant leakage in “Leakage” is a measure of how much local resi- Communities facing a budget crunch could have several retail sectors — primarily apparel and dent income flows to out-of-town stores. a local commercial real estate broker conduct a accessories, restaurants, and home furnishings. Identifying unmet retail demand leads to esti- trade area analysis pro bono. Many brokers will The analysis helps economic development offi- mates of how much additional retail and sales oblige, hoping for the opportunity to market cials determine the type of retail to target and tax your community can attract. In other words, space at a later date. where to focus development initiatives. leakage measures the lack of local retail opportu- nities.

The table below compares estimated expenditure TRADE AREA ANALYSIS To measure leakage, a municipality must first potential to retail sales in Des Plaines, Ill. (pop. determine how much money is spent on local 56,551), in 2004. The table shows that Des The trade area analysis will often be the most retailing. Sales tax information is readily available Plaines exceeded its total expenditure potential, important piece of information for a retailer or through the Ill. Dept. of Revenue. most likely indicating that residents from other developer. Trade areas transcend municipal S O

TAXABLE RETAIL SALES SALES IN EXCESS OF U R

EXPENDITURE POTENTIAL C

(FROM ILL. DEPT. OF REVENUE) POTENTIAL E :

C I T

(LEAKAGE) Y

Category

Estimated Potential Description Sales O F

D E S

Apparel and Accessory Stores $42,322,551 Apparel and Accessory Stores $2,027,145 ($40,295,406) P L A I N E

Automotive Dealers/Gasoline Service Stations $195,834,441 Automotive and Filling Stations $188,702,457 ($7,131,984) S

Drug and Proprietary Stores $52,628,837 Drugs and Misc. Retail $96,348,194 $43,719,357

Eating and Drinking Places $86,885,747 Drinking and Eating Places $67,689,011 ($19,196,736)

Food Stores $99,375,678 Food Stores $97,536,943 ($1,838,735)

Furniture and Home Stores/Home Appliance, $44,632,953 Furniture, Household, and Radio $9,072,989 ($35,559,964) Radio, and TV Stores

General Merchandise Stores $82,629,581 General Merchandise Stores $75,693,674 ($6,935,907)

Hardware, Lumber, and Garden Stores $33,084,486 Lumber, Building, and Hardware $32,004,002 ($1,080,484)

Misc. Retail $107,397,117 Agriculture, Manufacturing, etc. $211,538,830 $104,141,713

Total Retail Sales $744,791,391 Total Taxable Retail Sales $780,613,245 $35,821,854 Planning for Retail Development 9

boundaries, and usually overlap. Even the central To assess competition, a community should business district of an affluent municipality could begin with a simple area map delineating nearby struggle if wedged between adjacent communi- shopping centers of all types. The map below ties with prosperous downtowns or if it is near a illustrates the location and trade radii of com- regional shopping mall. Furthermore, Town B will petitors for different types of retail. By collecting have difficulty attracting a Target, for example, if the necessary data and drawing such a map, nearby Town A already has one. Long-term plan- your community will have a better idea of local ning will take into account the economic and market allowances and what types of retail and retail condition of areas beyond the city limits. retailers it should target. S O U R C E :

A site must meet a retailer’s criteria for the proj- G O O ect to move forward. Retailers have formulas; D M A they want X number of rooftops with X median N

W I

income within X miles of their site. A clothing L L I A store catering to tall men will have a larger trade M S area than an everyday convenience use such as a G R O dry cleaner or a coffee shop. Consequently, if a U P community hosts a tall men’s shop, nearby towns probably will not get one because con- sumer needs are covered by the trade area of the first store.

Important Tip: Share market research

A little creative thinking goes a long way. Municipalities conducting research in-house may want to consider partnering with utilities, shopping center owners, professional associa- tions, and regional planning or governmental entities. Such resources can provide inexpen- sive or free market analysis information that is both current and transferable to other develop- ment sites in your community. Des Plaines, Ill., trade area analysis map, showing the location and proximity of retail competitors. 10 Retail 1-2-3

ADDITIONAL QUESTIONS • If new retail (especially big box) will absorb • Is there a public investment incentive for sales from existing stores. brownfield sites? Who pays for environmental Retailers determine a location much the same mitigation? way coaches decide which player makes the • Whether there are site constraints or traffic team: the obviously unqualified are cut; the oth- issues. Infrastructure Inventory. By analyzing and map- ers get a more careful look, but the group is ping your community’s infrastructure you can Public Sector Issues. Prospective new retailers gradually winnowed down. When site selectors create a “geography of capacity” (see Austin case need to know about the local government. reach this stage, they will want more detailed study, pg. 11), which facilitates a clear and com- • Does municipal government encourage information, such as: mon understanding of strengths, shortcomings, development? If so, what kind and under and opportunities. Your inventory should detail what circumstances? stormwater drainage, water supply, wastewater, Demographics. Objective classifications of con- • What is the political environment? Do the city electrical supply, parking, public transportation, sumers such as age, sex, education, household council and mayor cooperate? Do they usual- streets, and sidewalks, cellular phone coverage, size, and percentage of home ownership. The ly support staff recommendations? When is and Internet accessibility (including Wi-Fi cover- economic development planning process will the next election? How long has the city man- age). The analysis should answer whether exist- have already produced most of this information. ager been on the job? ing infrastructure supports the potential develop- ment, and if any infrastructure improvements, • Will the economic development office facili- such as a bridge replacement, are imminent. Spending Patterns. Who buys how much of what tate a good working relationship between the and where? Spending patterns are studied by developer and agencies such as the railroads types of goods, income, and age. This type of and the Ill. Dept. of Transportation, energy research has evolved from relatively simple providers such as Commonwealth Edison demographics to “psychographics,” which classi- and Nicor, and public transportation agencies fy consumers by their subjective attitudes or including Pace, Metra, and the Chicago opinions. For example, demographics could help Transit Authority? determine whether an area is wealthy enough to support a boat shop; psychographics would • Will the municipality participate in recapture address whether local consumers prefer sailboats agreements? or speedboats. • Is the proposed site in a TIF district, Enterprise Zone, or other commercial busi- ness incentive district? If not, is one Retail Inventory. Prospective new retailers need to possible? know certain facts about the existing retail market. • Are there other financial incentives such as • The retail type already present and its dis- grants or loans to renovate old buildings? tance from the proposed area, whether some- Will City Hall land bank or otherwise help thing is missing, and whether more is with site assembly? These sidewalks in Evanston, Ill. (left) and planned. Elmhurst, Ill. (right) were upgraded in advance of • Whether existing retail is thriving or planned retail development. The attractiveness and struggling. durability of these sidewalks can increase the mar- ket potential around them. Planning for Retail Development 11 M O

FOCUS ON AUSTIN, TEX. L L Y

A L E

A thorough market assessment analysis will Infrastructure X A N invariably reveal retail development barriers. For • A shortage of public transportation and ques- D E R , tionable stormwater capacity. example, by analyzing the local economy and D O market potential, Austin officials were able to W N

As part of its 2003 Downtown Retail Market T identify barriers to retail development. The city’s O W

Strategy, the City of Austin performed a thorough N

implementation plan was designed to overcome A

infrastructure inventory and created a “geogra- U S

these barriers. T I phy of capacity.” N

A L L I A N C

Private market barriers E • Retailers and shoppers were unaware of new The results of this analysis — a GIS inventory of M

shopping, parking, store hours, and down- selected utilities and other features — were com- O L L piled into one database and posted on the city’s Y

town events. The proposed solution was a A L E

“consistent, energetic, well-documented mar- Web site. X A N

keting campaign that can demonstrate the D E R ,

breadth of market potential.” See: D O

• Parking was available but hard to find, one- W N T

way streets were disorienting, signage lacked http://coagis1.ci.austin.tx.us/website/COAViewer O W

uniformity, and the shopping environment _downtown/viewer.htm N

A U

was not pedestrian-friendly. S T I • The city’s downtown had over 500 property N

A L

owners, making it “difficult to create a uni- L I Austin’s tool is easily understood by retailers and A N

fied environment and a level playing field for C

developers interested in market potential and E retail recruitment.” community strengths and needs. By identifying barriers to retail success, then devising Public sector barriers means to overcome them, the Downtown Austin Alliance was able to create a downtown that is more distinctively SOURCE: ECONOMICS RESEARCH ASSOCIATES • Despite streamlining its development review “Austin.” process to ensure greater transparency, the process itself was still very slow. Austin con- tinued to have dated or conflicting zoning “The demand analysis the City and the Downtown Austin Alliance conducted helped solidify ordinances and poor public safety. downtown Austin had a demand for up to 900,000 sq.ft. of retail by 2008. This information coupled with an implementation strategy, a merchandising mix strategy, and the hiring of a retail recruiter has allowed us to have a positive impact on retail downtown. It has been criti- cal to our success to have someone recruiting the kind of soft-goods retailers we want down- town and bring them to the property owner and their representatives. The most difficult part of the deal has been to convince the property owners and the brokerage community that retail can be successful since we are forging new territory. Deal by deal, meeting by meeting, we are making a significant impact on the retail environment in downtown Austin.” Molly Alexander, Downtown Austin Alliance 12 Retail 1-2-3

Seven questions to answer when formulating an economic development strategy: 1) What are the direct costs of the strategy? Develop strategies for economic • Providing development incentives and financing, 2) How will it be funded? development such as façade improvement grants or a revolv- 3) Who will implement the strategy? ing loan, can be the difference maker in attract- 4) How stable or accessible is the funding? The common strategies for promoting economic ing retail. 5) What are the benefits, and can they be development listed below are discussed in greater detail in chapters 3 and 4. quantified? • Engage in business attraction and retention. 6) Do strategies need to be implemented in Partnering with community organizations such as a merchant’s association often demonstrates any particular order? • Establish a clearly defined structure for coordi- a community’s commitment to development. 7) Does the local government have clear legal nating economic development programs. This brings efficiency and transparency to planning, authority to carry out the strategy? and often includes streamlining permit review • Ensure adequate land supply for development. SOURCE: PLANNING 1-2-3 and processing. This will often entice developers and retailers, many of whom have set land requirements.

The importance of zoning ordinances • Provide adequate infrastructure, and offer Supportive zoning controls are essential to streetscape renovations and other community achieving most economic development improvement projects to create a better retail goals. Your zoning will establish the type environment. and location of permitted land uses, the general appearance of buildings, and other • Reform the zoning code if it is necessary to details that shape community viability for ensure that community goals are consistent with retail growth. Thoughtful, strategic zoning permitted land uses. ordinances have clearly specified explana- tions of variance and rezoning processes, and can communicate to potential retailers and developers a willingness for reasonable flexibility — as long as variations will work for everyone’s benefit. Your zoning code and economic development plan should be revisited periodically to ensure they remain As your community decides on strategies for economic in sync with community vision, market con- development be sure to consider your assets. Busy com- ditions, and other trends. muters create a market for staples and convenience goods, but they also appreciate restaurants, entertain- ment, and residential opportunities in close proximity to transit. Planning for Retail Development 13 J O

Develop an action plan S H

H A W K

An action plan identifies the specific tasks I N required to make goals a reality. Establish a pri- S ority of action steps so that your residents, staff, and potential developers and retailers under- stand your intentions. It is also important to specify which members of the community or staff will take the lead on each step, and identify the resources each step requires.

A matrix is a useful tool for structuring such a plan. It is clear and concise, and outlines the pri- Signs and banners such as these in Wilmette, Ill., and in Chicago’s ority, responsible parties, and resources for every Pilsen neighborhood (right) play two functions: they often convey important information, but they also contribute to a unique identity step. The example below outlines the needs of a for the community, which is a goal of many economic development hypothetical community seeking to improve the plans. Improvements such as these can markedly improve your retail retail mix near its commuter rail station. environment.

SAMPLE ACTION PLAN MATRIX

Priority Action Steps Lead Entity Village Resources

Address infrastructure needs in the Main Department of Planning Staff time, public Street Station area, including stormwater infrastructure costs 1 management, lighting, and pedestrian crossings.

Encourage infill development of multiple Economic development Staff time, community properties adjacent to Main Street committee, village staff marketing materials, 2 Station. forgone tax revenue given as incentives

Re-examine and amend, as needed, Zoning commission, existing plan and zoning designations in Staff time Department of Planning, 3 the district to be consistent with and supportive of the recommended retail economic development concept. committee, village staff 14 Retail 1-2-3

FOCUS ON PORTLAND, ORE.

Because of their size and complexity, municipal officials focus on defined areas for retail develop- EXISTING RETAIL DISTRICT CHARACTERISTICS RECOMMENDED RETAIL MERCHANDISING MIX ment. Portland’s Retail Merchandising Mix Plan divides the city’s downtown into several well- Approximate boundaries Approximate boundaries defined districts, and analyzes the opportunities, Salmon, 9th/10th, Burnside, Stark, Naito Salmon, 9th/10th, Burnside, Stark, Naito barriers, challenges, and proposed actions for retail development in each of them. District defining characteristics Role Traditional downtown retail center, hotels, non-tra- Be a nationally recognized, first-tier downtown ditional movie theaters Size and composition of opportunity Portland uses a table to identify the existing and Retail inventory and composition +100,000 to 150,000 sq. ft. recommended retail mix. It is easy to under- Est. 1.4 million sq. ft.; 58% specialty retail, 29% 80% general merchandise, apparel, furniture, stand, and clearly specifies desired outcomes for dept./anchor stores, 8% eating and drinking, 4% other each facet of the district in question. Including a other retail 20% eating and drinking feature like this in your plan can give everyone Total = 1.5- 1.55 million sq. ft. involved — citizens, government, and the retail Location concentration and nature of the shop- ping place Recommended theme community — a better idea of the district’s Dept. Stores: Meier & Frank, Nordstrom, Sak’s 5th Upscale, traditional retail center future. Ave. Shopping complexes: Pioneer Place, Galleria G

R Street Retail: Alder, Morrison, and Yamhill from Desired nature of the shopping place E G

G 2nd to Park Shopping complexes (including upgraded

G

A Galleria), street retail L B

R Tenant mix A I T

H 30%-40% local/regional • 60%-70% Desired future location concentration

F

O national/brand In addition to existing, west end of Morrison, R

R

E renovated Pioneer Courthouse Square, smart D

S Merchandising mix park garages T U

D Major dept. stores, upscale national specialty I O ,

stores Desired tenant mix I N C

. 20%-30% local/regional • 70%-80% Price points national/brand Moderate to high Desired merchandising mix Current primary user markets Expanded Dept. stores, large format apparel, Close-in residents, downtown workers, tourists, electronics weekend shoppers Enhancements needed to benefit retail Existing challenges More public transportation and parking, down- Downtown Portland includes large format retail, locally owned busi- Insufficient parking, inadequate public transit on town lighting district, extended and coordinated nesses, transit, cultural venues, and residential opportunities. Focusing on a distinct district, rather than on the community as a evenings and weekends, scattered surface parking shopping hours, signs and information kiosks, whole, allows for greater specificity and contextual nuance. lots, pockets with no retail frontage, increasing transit mall rehab, street activities (flower ven- rents, expensive rehab of upper floors dors, street artists, etc.) Planning for Retail Development 15

“The elements must reinforce and not con- flict with each other. For example, a compre- hensive plan whose economic development ECONOMIC DEVELOPMENT AS What does this mean for economic development, and particularly for retail? element anticipates substantial employment AN ELEMENT OF growth must address housing needs for the COMPREHENSIVE PLANNING new employees. If that is not done, the need By including economic development — and, for new housing will impact nearby commu- Planning 1-2-3 defines a local comprehensive plan more specifically, retail development — in a nities and traffic congestion will increase.” as “the vision of what the community wants to comprehensive plan, you can guide the require- Source: Planning 1-2-3 become and the steps needed to meet the goal.” ments of each planning element. For example, by The comprehensive plan involves much more accounting for housing needs in your suburban than retail development, or even economic devel- mall development goals, or recognizing the opment. The five common elements of a plan in potential environmental effects of a desired Illinois are: downtown riverwalk, your community will be bet- ter able to mitigate undesired consequences • Land Use such as inadequate stormwater management. A • Natural Resources comprehensive, holistic approach to planning • Transportation allows a community to communicate its vision to • Economic Development developers and retailers. • Housing

Depending on your community, you may also Communities can justifiably undertake an eco- include historic preservation, agriculture and nomic development plan by itself. However, farmland protection, urban design, digital planning for retail growth and economic develop- infrastructure, educational and other public ment in a vacuum, without accounting for land facilities, or a focus on subareas such as trans- use, natural resources, transportation, and hous- portation hubs. While each plan will vary ing, may mean greater susceptibility to a wide depending on context, what should never vary is array of unforeseen consequences, including the degree to which planning for one element is insufficient water supplies, the wrong amount of related to and even dependent upon planning for parking, and poor matching of employment and the other elements. housing opportunities. This approach could also result in missing critical action items for trans- portation, housing, cultural amenities, technolo- In other words, in a high-quality, effective com- gy, and natural resources, all of which could prehensive plan community, individual and mar- greatly enhance the local economy. ket decisions concerning the five elements listed A comprehensive plan should outline community goals in land above are intimately bound together; planning use, natural resources, housing, transportation, and economic for one element cannot happen without consid- development, while other goals will be included based on the com- munity’s preferences. For example, historic preservation is a focus eration of the other four. in Woodstock, Ill., seen here, but it may not be the right choice in some communities. 16 Retail 1-2-3

LOOKING AHEAD

Having examined the basics of an economic development plan in this chapter, the next chap- ter, “What Do You Want From Retail?,” explores four basic retail development types — recruit- ment, retention, revitalization, and replacement — as well as several important trends to watch. It will help you clarify what the community wants from retail.

PLANNING FOR ECONOMIC DEVELOPMENT AS PART OF A COMPREHENSIVE PLAN: BENEFITS AND DISADVANTAGES

Benefits Disadvantages • Assumes connection between economic • More expensive development, land use, transportation, and other comprehensive plan elements; more • Requires more research, resources, time, effectively anticipates cross-linkages and effort

• Can signal to long-term residents and retail- • Longer process ers that the community is serious about • More likely to be politically charged sustaining a positive living and economic environment

• Eligible for a wider range of outside funding, including funding for economic development A woman strolls with her afternoon coffee (above) as she surveys shop windows in downtown Geneva, Ill. The sidewalks, planters, attractive facades, and range of stores make for an enjoyable walk- ing experience for residents, workers, and visitors. Blue Island, Ill.’s, main street (left) is accented with signs and banners, and consistent design elements give a vintage feel to a district known for its antique shops.

What Do You Want from Retail? 17

2. What Do You Want from Retail? WHAT TO GAIN FROM THIS CHAPTER: * Learn about the benefits of retail. here are many kinds of retail, from regional • If retail development is concentrated in the heart Learn the four “Rs” of retail development. power centers to ethnic neighborhoods. of rapidly growing suburban communities, it can * • Recruitment TThere a variety of trends in retail develop- slow greenfield development, preserve open • Retention space, reduce auto-dependency, and create a ment that will affect the goals you set and influ- • Revitalization unique downtown character. Retail development ence the outcome of your decisions. Being clear • Replacement about what you want from retail will help you can also narrow the gap between suburban resi- dential and employment opportunities which has determine the proper strategy for achieving your Understand the importance of location. led to increasing traffic. * goals. • Retailer concerns • Community concerns These scenarios illustrate the potential benefits Know the trends in retail development. of retail, but your community’s plans should be * THE BENEFITS OF RETAIL • Mixed-use realistic. An economic development plan and a • Transit-oriented Retail development can cause many positive market assessment increase the likelihood that • Big box effects, including: retail development objectives will be supported • Infill by community circumstances, demographics, • Adaptive reuse assets, geography, and capacities. • Shopping as an “experience” • Retail development can revitalize underserved • Increasing ethnic diversity communities by creating a better housing mar- For example, residents in an underserved com- Learn the typology of retail. ket, safer streets, jobs and career advancement * munity might want a gourmet grocery store, but • Shopping centers opportunities, and a rejuvenated sense of place. • Downtown districts In underserved urban communities and older the store will locate only where the average annu-

al household income exceeds J suburban communities, retail development is a O S

$100,000. This requirement H

major step toward economic revitalization. H A

would rule out most commu- W K I nities. This does not mean N S • Strong retail generates sales tax revenue that communities with significant allows communities to provide essential services, needs must limit themselves such as police and fire, without raising municipal with humble goals, while their taxes. Illinois municipalities receive at least one prosperous neighbors contin- penny for every dollar spent locally on general ue to aim high. It merely merchandise — clothes, vehicles, restaurant means that communities meals, etc. If a regional mall has $100 million of need to compare what is pos- sales annually, the municipality receives $1 mil- sible with what is desirable lion (more if an additional local sales tax is and then pursue the most applied). appropriate match.

Elmhurst, Ill., set clear, realistic goals for retail development and is now home to a healthy mix of local entrepreneurs and national retailers. 18 Retail 1-2-3

Fill in the blank:

“What this town needs is a ______.” THE FOUR “Rs” OF RETAIL Be prepared to provide retailers with information a. Starbucks DEVELOPMENT about the area’s demographics, location of the b. Funky independent coffee shop competition, and identity of the area’s current c. Home Depot Specificity is vital to establishing retail develop- retailers. The municipality should inform d. Local hardware store with helpful staff ment goals. Are you trying to bring a community prospective retailers about new infrastructure (including transportation improvements), beauti- e. All of the above and more back to life? Are you trying to create a downtown shopping “experience” in an unremarkable fication plans, the type and style of surrounding downtown? Are you trying to conserve existing, development, and other planned municipal proj- For most mayors, managers, city council locally owned and operated retail establishments ects that would improve the attractiveness of the members, and village trustees, the answer is while augmenting the mix with notable national site. Prospective retailers will also want to know a resounding “e!” Nearly everywhere they go chains? Your retail development goals likely about financial incentives for specific sites, such as sales tax rebates or fee waivers. someone is telling them what their town include some mix of recruitment, retention, revi- does not have, but should. talization, and replacement. Recruiting retailers to a new area can be chal- Perhaps your plan has thee equally important lenging. Communities may want to hire a local priorities: recruiting new businesses, retaining retail broker to market available properties. Most existing businesses, and replacing businesses brokers are compensated only if a deal is con- that are not consistent with your plan’s vision. summated, so there are few upfront costs. Finding an experienced broker is not difficult. Important Tip: Link goals to strategies Perhaps your plan leans almost entirely toward revitalizing your retail district to increase foot Ask neighboring communities that have success- traffic and market an identity to attract shoppers. fully recruited retailers if they used a broker, if it No matter the case, it is important to under- was a positive experience, and whether they rec- Community goals need to be reflected in the ommend that broker. Another option is to con- strategies to achieve them. For example, if a pri- stand the differences between the four “Rs” of retail. tact retailers directly about which brokers they mary goal is brownfield redevelopment then work with in your area. Most regional develop- strategies should be explicitly directed toward ment assistance agencies can provide a list of that. Creating a merchant’s association or a brokers (see Appendix D, pg. 86). Finally, façade improvement program will be less Recruitment effective than establishing a TIF district, land involvement and membership in trade organiza- banking, or other strategy more clearly tied to tions such as International Council of Shopping redevelopment. Retail recruitment is what most people think of Centers can help facilitate the recruitment when they hear “retail development.” It is the process. process of attracting new businesses to an exist- ing or newly developing retail area. What Do You Want from Retail? 19

Important Tip: Develop an incentives policy Decide whether to use incentives to attract retailers on a case-by-case basis, depending on ers, concerns could range from trash removal to the importance of that particular retailer to condition of sidewalks and streets to govern- your project. ment support for festivals and other activities that bring people to the commercial area. These surveys also provide public officials with insight For example, many communities will offer into local retailer attitudes about the current incentives to the anchor tenant (Target, Wal- retail environment. Mart, etc.), knowing that satellite tenants will locate around them.

A less formal but effective approach is to host events for business owners such as a “Breakfast with the Mayor.” This demonstrates concern for Andersonville, a neighborhood on Chicago’s north side known for its the local business climate and gives both sides unique locally owned businesses, has long been committed to busi- ness retention. the chance to listen and learn from each other. Many communities, Retention such as Yorkville (pop. 10,791) and Roselle, Ill. (pop. 23,115), host Keeping long-standing businesses is easier and monthly “Coffees” with elected offi- less expensive than recruiting new ones. cials to give the entire community Independent retailers can greatly enhance the a chance to discuss local issues. uniqueness of your community establishments. Also, local stores may be more willing to support local causes, keep their eyes on the streets, and The added benefit of direct contact become involved in local issues. For example, a with business owners is that recent report by the Campaign for Sensible municipal officials become aware Growth and Urban Land Institute-Chicago shows of such problems as outdated zon- that by nurturing locally owned retail, Anderson- ing ordinances or cumbersome ville, a neighborhood on the north side of regulations. The retail market Chicago, has become a model for unique retail moves fast, often outpacing gov- development. (See Chapter 5, pg. 76 for a ernment. For example, for a trendy, detailed case study.) “fix-your-own” restaurant where staff grills the food assembled by patrons, the municipality has the Many economic development agencies conduct difficult but crucial task of classify- business retention surveys, which give business ing the establishment — is the business a sit- This Home Depot, on Halsted Street on Chicago’s north side, owners a chance to tell public officials what they down restaurant, deli, or fast food place? — to anchors the local retail district, and many smaller local and national tenants have located in close proximity to it. like and dislike about their locations. For retail- determine the appropriate parking requirements. 20 Retail 1-2-3

Planners and economic developers need to com- As one section of town expands and prospers, town altogether, municipalities can offer to the municate from the outset of a project to avoid another can easily rupture. To create a successful owners of these properties incentives to relocate costly, unnecessary mistakes. While local con- revitalization program, planners, economic elsewhere in the community. This creates oppor- trols are necessary for the public welfare, outdat- developers, and other municipal officials need to tunities for new investment in more desirable ed regulations can inadvertently curtail economic understand and anticipate the causes of decline, retail options. Using eminent domain is another development. barriers to reinvestment, and which assets need way to facilitate economic development but improvement. should be an option of last resort. See chapter 3, pg. 55 for more on eminent domain. Finally, the municipality should maintain on- going public support for businesses. Public acco- Because revitalization cannot happen in isola- lades through newsletters, cable TV program- tion, look to adjacent properties or the entire ming, and the local media will help local busi- neighborhood as you assess revitalization goals. ness owners feel appreciated. Often, targeted revitalization requires efforts such as streetscaping or façade improvements within a larger area. Revitalization

Revitalization is the process of introducing or Replacement restoring economic vitality to a disinvested retail area. There are numerous approaches and mod- Retail replacement is less els for revitalization. The National Trust for common, but no less Historic Preservation’s Main Street program has important. In some Illinois helped revitalize several downtowns in northeast- communities, a significant ern Illinois, using historic preservation as a foun- decrease in pedestrian dation for economic development. Other com- activity and related retail in munities have used tools such as tax increment the downtown shopping financing to rejuvenate their retail districts. area was offset by a rise in tire stores, light industry and manufacturing, and Revitalization often includes infrastructure and auto body repair shops. urban design modifications and infill develop- These types of auto-orient- ment. The latter is frequently mixed-use develop- ed businesses are inconsis- ment, which increases population density and tent with a pedestrian- foot traffic, and, therefore, a base of shoppers. friendly, walkable down- Although revitalization efforts are most prevalent town. Rather than eliminate The revitalization of downtown Elgin, Ill., has been made possible by a mix of infrastructure in disinvested urban communities, nearly all important but aesthetically improvements, streetscaping, and financial incentives. communities have some revitalization needs. deprived uses from the What Do You Want from Retail? 21

Important Tip: Follow retail trends Stay current on the changing location criteria of UNDERSTANDING THE In municipalities with less attractive demograph- various retailers. IMPORTANCE OF LOCATION ics, the roles are reversed, and the public and private sectors have to work harder to improve the local economy — which will eventually For a long time, Starbucks wanted highly populated It is important to consider the needs of both the improve the retail climate. However, this does urban locations. As that market became saturated, retailer and community when thinking about not mean that lower-income towns or neighbor- the company branched out into both less dense location of a retail establishment hoods have to wait many years to attract retail. suburban markets and areas with lower median Densely populated urban neighborhoods have incomes. Today, Starbucks has coffee shops in loca- significant purchasing power. The average tions such as diverse as a strip center in suburban Retailer concerns income might be lower, but density makes up for St. Charles and on Stony Island Avenue on that in total dollars available to spend. Chicago’s historically underserved south side. Retailers’ location needs are fairly simple. They want to be where commercially zoned land is Elmhurst, Ill. (pop. 44,976), employs a retail con- available and near people with good jobs. Chicago-based Matanky Real Estate specializes sultant to maintain relationships with local entre- Developers have similar needs. They want loca- in urban retail redevelopment projects, building preneurs and national retailers so that village staff tions where land assembly is possible and enti- projects in communities with average household tlements will be granted quickly. can stay up-to-date. The consultant works 10 hours incomes ranging from $25,000 to $150,000. In a week for the city, and is paid with funds from the lower-income areas, there is less room for error, city’s special service area. so success comes from being “very focused on Retailers may deal directly with municipalities. the neighborhood and where people actually “We find our own sites and build our own come from to shop,” said owner James Matanky. stores,” said Dave Delach, a real estate executive This means renting space to stores that sell for Home Depot, “but that’s unusual in the retail goods affordable to nearby residents. Most trade industry.” Typically, developers find a site, build areas also include people with higher incomes, the stores, and seek tenants. However, even so shopping centers may have some upscale when the economic development agency has lit- stores. tle or no direct contact with retailers, it is still the job of the municipality to craft the concept of the particular development through its comprehen- According to Home Depot’s Delach, “Most sive plan. retailers can analyze the market with basic demo- graphics.” This includes number of households, and median household income within one, three, It is also important to determine whether you five, and 10 miles of the prospective site. “That, have a buyer’s or a seller’s market. Communities more than anything else, is what drives the core that are rapidly growing, and adding new homes business,” said Delach. Many of Elmhurst’s thriving entrepreneurs, such as the and high-paying jobs, are in a seller’s market. enzee boutique, were recruited by its retail consultant. They have what the retailers want. Outside expertise can help many communities achieve their retail goals. 22 Retail 1-2-3

Location requirements for a hypothetical 100,000 sq. ft. home improvement store

certain area — retailers then might consider vari- Population: 50,000 within five miles ous sites.

Number of households: 20,000 Every retailer will have different demographic and Median household income: At least $40,000 site criteria. Home Depot, for example, usually wants at least 20,000 households — approxi- Site size: 10-12 acres mately 50,000 people with median household incomes above $40,000, within five miles. Site selectors for other stores could seek dramatically Parking spaces: 400 different income levels. According to a local retail developer, the specialty grocery store Trader Joe’s Drive-by traffic: 20,000-50,000 vehicles daily wants to be in areas where median annual While retailers, particularly national or regional large-format retail- household income exceeds $100,000. ers, have a set list of desirable location parameters, most will be flex- ible if the market merits it. In Chicago, Trader Joe’s has conceded some of its specifications for the right opportunity. Located on Ontario Street just off Michigan Avenue, the site does not meet the company’s standard parking requirements, but was nonetheless Retailers also like to see a map depicting nearby attractive because of Chicago’s thriving affluent downtown residen- businesses, because the presence of major com- tial population with close pedestrian access. petitors changes the demographic analysis. Retailers seek information in two areas: market considerations such as trade areas, population and income, and site considerations such as traf- Retailers also consider the community character- If the demographics look promising, retailers will fic counts and acreage. Economic developers can istics of a potential site. Like most retailers, then do a preliminary review of sites that meet help retailers (especially national chains) that Home Depot prefers to locate where incomes their criteria. The typical 102,000 sq. ft. Home might not know about local conditions by guar- are high, “but not too high,” Delach said, Depot store requires 10 to 12 acres along a street anteeing current population estimates. For exam- “because then there won’t be many people doing with a daily traffic count of 20,000 to 50,000 ple, a proposed site might not have had enough their own work around the house. We want to be vehicles per day. nearby population when the 2000 census was near do-it-yourselfers.” Therefore, Home Depot taken, but has since experienced a building tends to avoid college towns, which have con- boom. sumers with good incomes (i.e., university facul- Home Depot also wants at least four parking ty), but also a large percentage of college stu- spaces for every 1,000 sq. ft of store space, dents, who are not home remodeling enthusi- which is in line with what many zoning ordi- Market considerations take precedence over site asts. (College towns tend to attract bookstores nances require. Costco wants five spaces per considerations because without demand for what and moderately priced restaurants.) Likewise, an 1,000 sq. ft, according to one expert, and those the retailer sells the availability of a good site is established community with an aging population spaces should be 10 ft. wide by 20 ft. long, irrelevant. If an area demonstrates potential will have different needs than a newer, rapidly instead of a more traditional 9 by 18 ft. Trader demand — enough people and money within a growing area with young families. Joe’s wants 80 parking spaces for its buildings, What Do You Want from Retail? 23

Location options for retail development in built- which are generally 10,000 to 12,000 sq. ft. The What areas of the community could handle retail up communities company also wants at least 85 feet of frontage. development without substantial investment in The site must be big enough to accommodate infrastructure? Environmental clean-up? Land • Brownfield site (former industrial) 65-foot trailers and provide 1,000 to 1,200 amp assembly? electrical service. • Based on those answers, does retail develop- • Underused or aging strip center, big box store, ment in these areas mesh with community or shopping mall goals (e.g., developing a greenfield site might conflict with open space preservation or infill • Urban infill site between existing structures or Community concerns redevelopment goals)? uses Retailers may seek out locations that yield prof- What areas of the community are currently zoned • Empty or derelict lots or buildings, such as for- its, but community concerns are typically more for retail? mer factories, military bases, or row housing varied and reflect greater economic development • Does retail development in these areas fit with goals and community vision. community goals? • Underperforming older suburban or village • Does the zoning code in other areas allow the main street kind of retail development we want? If not, which is more important to you: the zoning • Suburban bedroom community or inner city Perhaps the focus of retail development is con- code or the retail? neighborhood with little or no shopping/retail fined to one section of the community. The development to serve the local population visions, goals, strategies, and plans change from location to location. Furthermore, there is no Are there areas of the community suitable for revi- • Underutilized or declining downtown commer- one-size-fits-all rule for retail development. talization and redevelopment? cial/retail strip or central business district Choosing the best location means asking tough • If so, is that something you want to invest questions, the answers to which reveal a great time, energy, and money to do? • Historic district deal about a community’s potential for retail • If not, are there areas suitable for recruitment? development, the viability of its retail goals, and • Neighborhood center to what degree the two are in sync. Leakage analyses may tell you that shoppers are

SOURCE: INTERNATIONAL COUNCIL OF CHOPPING CENTERS, spending money in the town next door, in which INTERNATIONAL ECONOMIC DEVELOPMENT COUNCIL, case you will want to develop retail to capture RETAIL AS A CATALYST FOR ECONOMIC DEVELOPMENT The questions may include: those dollars. However, it is also possible the Where does your market assessment indicate retail analysis will tell you that both communities are would be profitable? Where does the trade area losing revenue to a third community. Retail analysis suggest there are retail holes you can fill? development in either one of your communities • Is the kind of retail that would likely prosper in could bring that money closer to home. these areas compatible with the kind of retail you want? Cooperation might benefit you and your neigh- bor. There are many advantages to boundary 24 Retail 1-2-3

Challenges of the Prototype

Just because a building has the right size, loca- agreements, and your community may find it in For example, the City of Champaign, Ill. (pop. tion, and price for a retailer, does not mean the your interest to contact your neighbor and pro- 71,568 ), and the neighboring Village of Savoy deal is done. pose the idea. Boundary agreements can delin- (pop. 4,839), entered into a revenue-sharing eate who is responsible for planning, develop- boundary agreement in 1992 after Champaign’s ment review, services, and other interjurisdiction- plans to develop along the border between the al considerations. two communities began impacting Savoy with To operate efficiently and profitably, retail increased traffic flow and other infrastructure stores are, in many ways, designed from the stresses. Now a portion of Champaign’s tax rev- inside out. The prototype plan will dictate enue from the project is used to compensate everything about the interior of the store, Depending on your project’s geography, there Savoy. including the location of the entrance, the may be strain on your neighbor’s infrastructure, loading area, merchandise display area, cash ranging from increased traffic to damage to a register location, storage area, drive-through shared watershed. The additional sales tax rev- window, and any other operations-related enue from your retail development will enable By sharing the revenue from sales taxes that requirement of the building space plan. As a your neighbor to better respond to these chal- result from retail development or forging some result, if a space is unable to accommodate lenges, which in turn might create a better retail other agreement, both communities can increase the prototype requirements, it may be unus- environment for you. customer traffic. able for that retailer.

The best available site for retail development No space will ever be perfect, even if it is a may border your neighbor or even straddle that free-standing, build-to-suit structure. Depend- border. In this case, developing the retail cooper- ing on the retailer, some have multiple proto- atively could maximize the potential of the types to increase the universe of workable shared property. spaces and some retailers are better able to adapt their prototypes to work within the con- straints of a particular space. Any change in a retailer's prototypical plans that will impact the operation (and therefore the profitability) of that location will require a reassessment of whether this location can still be profitable after incorporating the change in the proto- type. What Do You Want from Retail? 25

RETAIL DEVELOPMENT TRENDS Mixed-use can work to your benefit, but might require a significant update of your zoning code. Single-use (or Euclidean-style) zoning, which per- Mixed-use mits only one use on a parcel of land, is still the norm throughout this country and creates signifi- Incorporating different land uses on the same cant challenges for developers, retailers, and parcel of land can be a boon for retail. The most community officials attempting more complex common example of mixed-use development is projects. Mixed-use intentionally creates greater first-floor retail with community density, which frequently generates upper-floor office or opposition from some existing residents and “Mixed uses create residential space. retailers. It is important to clearly and carefully critical mass and a Mixed-use effectively demonstrate the many benefits of mixed-use sense of place by supplements com- development in order to create community sup- affording the com- mercially tenuous port. areas by increasing munity a wider the population base range of goods, and foot traffic in Mixed-use development in Highland Park, Ill., where a mix of shops, services and experi- commercial down- offices and residences increase foot traffic, reduce congestion, and extend the shopping day. ences at one loca- towns and neighbor- hood shopping dis- tion, thereby tricts. Housing in increasing connec- and around com- Embracing mixed-use involves: tivity and choice mercial districts and reducing trip also provides some • Removing planning and regulatory barriers • Clustering and interconnecting activities that benefit from colocation and mixed generation rates. security to a district in the form of land-use controls and oner- should the econo- ous parking requirements that prohibit use, such as office, retail, residential, and The diversification my falter. mixed-use development. transit-oriented uses. of use within proj- ects hedges a dis- • Encouraging government and community • Providing community infrastructure and incentives and support for mixed-use facilities within reinvented districts rather trict’s income development by providing parking than on stand-alone sites in greenfield stream and makes garages, public domain improvements, locations accessed only by automobile. for proper and bal- streetscaping, and transportation choices. SOURCE: URBAN LAND INSTITUTE, TEN PRINCIPLES FOR REIN- anced risk manage- VENTING AMERICA’S SUBURBAN BUSINESS DISTRICTS • Designing the reinvented … district so that ment of property pedestrian paths offer opportunities and investments.” choices in location of retail, education, community, and residential land uses. URBAN LAND INSTITUTE, TEN PRINCIPLES FOR REINVENTING AMERICA’S SUBURBAN BUSINESS DISTRICTS 26 Retail 1-2-3 G R E G G

G A L B R A I T H ,

R E D

Transit-oriented development S T U D I O ,

Transit-oriented development (TOD) is best I N C

described as development focused around tran- . sit stations that is designed to improve transit use and neighborhood walkability. TOD stresses the importance of density. By developing or rede- veloping the target area with jobs, homes, and retail options close to transit, you can increase foot traffic, lengthen the retail day, reduce auto- mobile congestion, and create a unique identity that visitors can enjoy.

Big box Big-box retail centers are the large-scale retail developments anchored by large format retailers such as Wal-Mart, Home Depot, and Target. Historically a suburban phenomenon, they are Large format retailers, such as big and medium boxes, are no longer a purely suburban phenomena. This Whole Foods is in the heart of now common in urban settings. Portland, Ore. Big boxes can be risky, but they can also be rewarding, and it is often thorough planning that makes the difference.

Big boxes have been labeled “category killers” forbid large-scale retail development, but others Big boxes bear costs and provide benefits. These because they can potentially drive smaller, locally have found ways to reap the potential benefits of stores can range in size from 20,000 sq. ft. to owned establishments out of business. But they big boxes without losing sight of the vision 250,000 sq. ft; locations on the upper end of this also create many new jobs and attract additional established by their economic development scale require high parking ratios, large access retailers. In fact, many communities will offer plans. Some communities have had negative roads, and often outdoor display spaces for such significant incentives to big boxes, knowing their experiences with big boxes for a variety of rea- goods as plants, lumber, or prefabricated build- presence is incentive enough to attract smaller sons — a lack of planning, insufficient market ings. Until very recently, most big boxes required retailers. demand, conflict between corporate and com- greenfield development, resulting in the loss of munity interests, etc. — but big-box retail is not open space or agricultural land. However, big inherently evil. A big-box retail development may boxes in urban locations, such as Target on Many communities are attractive to big boxes, be the right choice for your community, but it is Chicago’s Roosevelt Road or Home Depot on but it is often the case that neither standard zon- a choice that should be made with a thorough Chicago’s North Avenue, have thrived, setting a ing policies nor other municipal regulations understanding of the of the upside potential and precedent for infill development. accommodate for them. Some U.S. communities the downside risk. have created zoning regulations that explicitly What Do You Want from Retail? 27

Zoning for TOD:

TOD Best Practices Promote density. Design for transit and pedestrians • Adopt a minimum residential density around • Zoning can maximize the accessibility of A review of practices from cities across North stations that is sufficient to support higher transit. America indicates that TOD is a unique form of transit frequency. • Some community zoning codes dictate that urban development. No two stations are the Ensure good urban design. new subdivisions must be designed to pro- same. How a station area is planned and devel- • Relate the ground level to pedestrian uses; vide “safe, convenient, and direct” access to oped will depend on the particular attributes of have all-season design, and employ lighting, retail, transit, schools, and parks within one- that station and surrounding community. How- landscaping, and signs. quarter mile. ever, several key components are commonly found to be critical to the success of any TOD. Create convenient pedestrian connections. Promote density • Emphasize short walking distances and con- • Use zoning codes to establish minimum tinuous walking paths, and minimize vehicu- and maximum densities. lar and pedestrian meetings. Get the land uses right. • Establish multifamily housing districts along • Ensure transit supportive uses; encourage a Create compact development patterns. transit corridors, with single-family housing mix of uses; locate the uses as close to the • Build a compact street network, cluster build- on the periphery. station as possible. ings together, and leave room to grow by • Set smaller lot sizes for single-family homes. placing buildings on the sides of parcels rather than in the middle. Mix uses Manage parking. • Housing should be permitted in TOD • Accommodate the automobile zones. without catering to it; locate • Auto-dominated uses detract from TOD, parking to the rear or sides of and should not be allowed. buildings, and do phased park- • First-floor retail with upper-story housing or ing from surface lots to office space is often a key to TOD success. structures. Make each station a “place.” Limit parking • Create a destination with land- • Use zoning to reduce the amount of parking marks and open spaces, create within a certain radius of transit routes. sight lines to and from the sta- • Dictate that parking must be behind or next tions, and orient buildings to to buildings. the street. SOURCE: IDEAS@WORK, VOL. 2 NO 4, 2002

SOURCE: CITY OF CALGARY, ALBERTA, CANADA

The TOD around Palatine, Ill.’s, Metra station includes mixed-use retail and housing (under construction in the background), office space, entertainment, and both street-level and struc- tured parking. 28 Retail 1-2-3

TOD by Community Type

Community Type Land-Use Mix Minimum Housing Density Regional Connectivity Transit Frequencies Examples Office center Urban entertainment High: Hub of radial system Urban Downtown >60 units/acre <10 minutes Multifamily housing Printer’s Row, Chicago Retail

Medium: Access to down- Residential/retail Urban Neighborhood >20 units/acre town,subregional circulation 10 minutes peak Hyde Park, Chicago Class B commercial 20 minutes off-peak

Primary office center High: Access to downtown, Urban entertainment subregional Hub Suburban Center >50 units/acre 10 minutes peak Arlington Heights, Ill. Multifamily housing 10-15 minutes off-peak Retail

Residential Medium: Access to suburban centers and downtown Suburban Neighborhood Neighborhood retail >12 units/acre 20 minutes peak Hinsdale, Ill. Local office 30 minutes off-peak

Retail center Low: Access to downtown Peak service Commuter Town Center >12 units/acre Grayslake, Ill. Residential demand-responsive

SOURCE: ADAPTED FROM DITTMAR, ZONING PRACTICE 08.04

“Getting the codes right and distinguishing development around transit from auto-oriented development will enable these projects to be entitled more quickly and financed more easily, and, hopefully, to perform better. Coding for TOD involves understanding that there is interplay between density and land-use mix and levels of transit service.” SOURCE: DITTMAR, ZONING PRACTICE 08.04 What Do You Want from Retail? 29

Larger-scale retail opportunity, Des Plaines, Ill. Below is an excerpt from Des Plaines’ 2005 When planning for large-scale retail developments, municipal governments should Market Assessment. Having conducted a consider the following: leakage analysis, the village determined it did not suffer from significant leakage but • The amount of land (acres and sq. ft.) in the community that is currently used for retail. Compare this had opportunities for large-scale retail devel- amount with other cities in the region. opment. By capitalizing on existing competi- tion between large-scale retailers, Des • The amount of land zoned for future retail use. Consider whether the city is over or under-zoned for Plaines positions itself to develop this form retail, and if the amount and type of retail development is in line with the community’s vision for its of retail consistent with community vision future. and goals.

• The location of big-box developments and the reasons for choosing such locations. Determine whether these locations are in line with the goals of the comprehensive plan and intent of the zoning ordinance. If not, consider an audit of the city’s plan and regulations, and perhaps, even a moratorium. “Increasingly, retail development is being driven by retailers who have a strategic rea- son to open up a new store in a given mar- ket. New stores in prime locations can, and When courting (or being courted by) large-scale retailers: do, take sales away from existing stores. Some retailers may be looking to increase • Consider using abandoned or obsolete industrial zones or facilities as infill opportunities for large-scale their market shares by locating near a com- retail. petitor or introducing a new store format. While apparel stores will be more likely to • Look for underserved sections of town that have a difficult time attracting small, local businesses such as cluster near existing malls, the following grocery markets. Such areas may do well with a big-box retail development. types of stores might be willing to locate along the major commercial arteries in Des • Develop a plan for white elephants before they become a problem. How can existing retail sites be adapt- Plaines, given its growing population and ed for future use should vacancy or abandonment occur? favorable demographics:

• Look at the community’s existing regulatory options for big-box retail. For example, does the community Electronics • Home Improvement • Books • have a triggering device (e.g., permit applications for construction, rehabilitation or expansion of an exist- Office Supply • Crafts • Pet Supply • ing use) for design review? Does it have an adequate “catalog” of design alternatives, including photo- Housewares and Home Furnishings graphs, to help retailers and citizens choose a design that is right for the community? If appropriate sites were assembled on SOURCE: JENNIFER EVANS-CROWLEY, ZONING PRACTICE, 12.05 major arteries, and an anchor tenant, such as a home improvement store, could be secured, it is reasonable to assume that four or five additional large format stores could be attracted to Des Plaines.”

SOURCE: GOODMAN WILLIAMS GROUP 30 Retail 1-2-3

Common zoning impediments to redevelopment

The APA cites four common impediments to Infill redevelopment that often stem from munici- pal zoning codes. If your zoning codes share Redeveloping properties on previously vacant or these attributes, redevelopment may be underused land in built-up areas is, in principle, unnecessarily difficult in your community. both environmentally and economically desir- This Riverdale, Ill., CVS is the result of a complex infill develop- ment strategy adjacent to a Metra commuter station. able. It leads to the clean-up and reuse of exist- • Setback requirements that fail to recognize ing parcels of usable land, rather than using irre- grids do not easily lend themselves to the type of zero lot line development as a common, placeable open space. According to the infill development that is demanded by the sub- often desirable, style in downtowns. Northeast-Midwest Institute, “successful infill market,” stated the National Association of development channels economic growth into Realtors in Best Practices to Encourage Infill existing urban and suburban communities and Development. Infill development sites that are • Floor area ratios or units-per-acre based conserves natural resources at the periphery of large enough to attract developers’ attention can on bulk and density regulations that do not the metropolis.” Infill sites, unlike those on the be difficult to find, so potential for land assembly allow enough upper-floor residential devel- periphery of urban centers, are often closer to (discussed below) often becomes increasingly opment to achieve economic feasibility, transportation corridors, waterfronts and rivers, important when considering infill. and do not allow flexibility for mitigating and historic neighborhoods, all of which are very factors such as quality architecture, upper- attractive to retailers and developers. floor stepbacks to hide bulk and building Brownfield development, a type of infill, refers to façade articulation. the rejuvenation of land contaminated from past Infill can be a major part of retail development, industrial or commercial activity. Brownfield particularly in older and disinvested communi- development does not occur regularly in down- • Minimum parking ratios that do not recog- ties. However, these neighborhoods “may be at a town settings, though the sites of former gas sta- nize the reduced off-street parking need in disadvantage if existing streets and other infra- tions, auto shops, and dry cleaners are often downtowns because of on-street parking structure are in poor repair, or if existing land- prime for revitalization. availability, potential for shared parking use patterns, lot configuration or size, or street between complementary uses, and (if applicable) public transit availability. Infill development challenges A major challenge in selecting and acquiring an infill development site is finding a location that can meet the • Onsite stormwater detention requirements complex and, at times, conflicting objectives for a project to: for redevelopment — even though redevel- • Accommodate the density of development needed to make the project financially feasible and generate opment generally does not increase the the developer’s expected return. amount of impervious surface on the site. • Be designed to a size and scale that is consistent with market demand and the desired character of the neighborhood. SOURCE: TONY SMITH AND STEVE FRIEDMAN, ZONING PRACTICE 2.06 • Provide the landscaping, parking, lighting, security, and other amenities demanded by the target market. The availability of infill development sites that can meet all of these objectives may be limited in some urban neighborhoods. SOURCE: NATIONAL ASSOCIATION OF REALTORS, BEST PRACTICES TO ENCOURAGE INFILL DEVELOPMENT What Do You Want from Retail? 31

Adaptive reuse experience. Sometimes it is ethnic, like Chicago’s Devon Avenue (a mix of Indian, Pakistani, and Adaptive reuse is an increasingly common tech- Russian); others are branded downtowns with nique for creating a unique retail environment by recognizable symbols, slogans, and design reusing existing buildings. This not only pre- themes. Both St. Charles and Woodstock have serves a link to the past, but is often environ- cultivated distinct identities using planters, mentally and economically sound. It eliminates signs, and street festivals. the need for clearing new ground or assembling parcels of land for construction, and restoration Creating such a shopping experience is often the costs are often lower than those for new con- result of planning, patience, and persistence. struction. Even if a building is not suitable for Depending on your community’s goals, this may be retail, its reuse may enhance a retail environ- a model for you. ment. For example, the Illinois State Museum’s Lockport Gallery in Lockport, Ill. (pop. 22,161), is located on the first floor of a massive limestone structure, the Norton Building, built around 1850 on the banks of the Illinois & Michigan Canal. The gallery was restored in 1989, and today Once the site of the State Bank of Geneva, Tuscana, an Italian draws a regular stream of visitors who also fre- restaurant in Geneva, Ill., is a local example of adaptive reuse. quent the adjacent shops and restaurants. The Place, and Banana Republic have replaced main- Norton Building also houses residential lofts, stays like Montgomery Ward’s, Marshall Field’s, offices, and commercial space. and Lord & Taylor, and restaurants such as Rainforest Café provide entertainment and food. The newest regional mall to open in metropoli- Shopping as an “experience” tan Chicago was the Chicago Ridge Mall, and that was in the early 1980s. Today’s retail outlets Twenty years ago, shopping at a mall was a are lifestyle centers, such as Geneva Commons, favorite pastime. Today, outlet malls, lifestyle which are not enclosed and feature public art, centers, and downtown commercial districts fountains, and landscaping. Keeping track of combine shopping and entertainment to create these trends is an important part of an ongoing an experience much different from “hanging out economic development program. at the mall.” When someone says he “spent the day on Devon Retailing and entertainment can meet in expan- Avenue” you have as clear an idea of what he sive malls featuring carnival rides, performers saw, ate, and bought as if he had said he spent and memorabilia, along with food and national the day at Navy Pier. Neighborhood retail dis- Devon Avenue, on Chicago’s north side, is a mix of Indian, Pakistani, and Russian influences, with a mix of food, apparel, chain stores. Retailers such as Gap, Children’s tricts with distinct identities offer another kind of and entertainment options. 32 Retail 1-2-3

Use demographic data carefully

Using outdated demographic information can result in a project that no longer fits the com- Increasing Ethnic Diversity munity. Foreign-born residents and their American-born Urban planner Grace Bazylewski, a native children are an increasingly powerful economic Chicagoan of Polish ancestry, tells the story of a force in the United States. Immigrants are espe- national grocery chain that opened a store a few cially important in metropolitan Chicago, where years ago and marketed to the Polish communi- they represent one-third of the growth of owner- ty. However, the grocer made this decision occupied housing. Therefore, increasing ethnic based on demographic data from the 2000 U.S. diversity is both a demographic reality and a census. “By the time the store opened, the market opportunity. neighborhood was changing, with many The Latino entrepreneurial tradition is alive in well in Chicago’s European immigrants moving out,” she said. Pilsen neighborhood, where colorful public art (below) and authentic “The neighborhood is quickly turning Latino, a foods and other goods are major draws for visitors and locals alike. Of trend that a closer look would have identified.” Between 1970 and 2004, Latinos accounted for particular note is Nuevo Leon, at 18th Street just east of Ashland 96 percent of the Chicago region’s population Avenue, which is painted with traditional motifs inside and out. As has been the case for many years, some growth. In fact, with 1.6 million people, Latinos strong entrepreneurial tradition, demonstrated Chicago neighborhoods are ports of entry where are now the largest ethnic or racial minority along the thriving commercial streets in immigrants move upon arriving here. Bazylew- group in metropolitan Chicago. Latinos have a Chicago’s Pilsen and Little ski said many Poles eventually move to the J

O Village neighborhoods. The

northwest and southwest suburbs. “They S H

Latino influence is felt should have tried Lemont, Lombard, or Addison H A W throughout the region in for a store targeted toward Poles,” she said. K I N

S such places as Cicero and Also, many immigrants rapidly embrace the cul- Melrose Park, where most ture of their new home. “As immigrants settle residents are of Hispanic into a new environment, they will assimilate origin. local habits; the longer they live somewhere the more local they become. The Poles staying in that area are ‘Americanized’ and shop outside Latino buying power has their culture already,” Bazylewski explained. also increased. According to The State of Latino Chicago, What should this retailer have done? “They by the University of Notre should have partnered with an established regional Polish organization like the Polish Dame Institute for Latino National Alliance,” Bazylewski said. “And per- Studies, between 1990 and haps through membership studies and focus 2003, the aggregate house- groups figured out where the newest immi- hold income for Chicago- grants are settling.” area Latinos increased from $5.8 billion to $20 billion. What Do You Want from Retail? 33

While Latinos are the largest immigrant group Local economic development agencies can tell they are not the only one affecting retail. West prospective retailers how the neighborhood is suburban Naperville now has a grocery store — changing and what opportunities exist. It is not Asia Supermarket — catering to the Asian clien- enough to attract a new store; the goal is to tele located in the area. The Bobak Sausage attract stores that meet a community’s market Company’s Eastern European supermarkets and demands and will succeed. delis in Naperville, Burr Ridge, Chicago, and Orland Park, as well as Arlington Heights’ new Mitsuwa Marketplace Japanese supermarket Starbucks is a good example of a company that reflect similar efforts to serve specific ethnic has disregarded presupposed notions of a mar- groups. ket’s potential. Partnering with the Johnson Development Corporation (founded by basketball legend Ervin “Magic” Johnson), Starbucks has It is important to keep track of the latest trends demonstrated there is a market for its stores in in immigration to understand settlement pat- predominantly African-American low and moder- terns. Demographics often change more rapidly ate-income communities. The five Illinois than developers and retailers are aware, particu- Starbucks locations in traditionally underserved larly if assessments are based on the U.S. neighborhoods have all met or exceeded start-up Census or the American Community Survey expectations. (which occurs more frequently than the Census, but is less descriptive).

Without the latest information on a community’s changing demographics, developers and retailers might propose projects based on dated or pre- supposed notions of a market’s potential. For example, if developers believe a district will only support one kind of restaurant (e.g., auto-orient- ed fast food) because of its socioeconomic This Starbucks, at 71st Street and Stony Island Avenue on make-up, that market is likely to become over- Chicago’s south side, is one of five in Illinois in traditionally saturated, while other opportunities (e.g., pedes- underserved neighborhoods. trian-friendly coffee shops) will be missed. This pattern begs a question: Does Retail Type A suc- ceed in Area B because consumers genuinely want it or because it is all that is offered? 34 Retail 1-2-3

Types of Retail Development in Built-up Communities • Enclosed downtown mall (one story or multi-level) with shops, restaurants, and RETAIL TYPOLOGY entertainment facilities such as a multiplex cinema or ice rink. All retail is not equal. Understanding the differ- • Mixed-use project combining retail with resi- ent types of retail will help to clarify your goals. dential, hotel, and/or office elements. • Waterfront retail/entertainment project or Shopping Center Types festival center.

• Renovation of existing retail street front or The International Council of Shopping Centers This neighborhood center, at the intersection of 55th Street and shopping mall. (ICSC) offers the following definitions of shop- Lake Park Boulevard in Hyde Park, is anchored by a Walgreens, ping centers. ACE Hardware, and a locally owned supermarket. • “Village center” with central piazza, pedes- trian walkways, retail, and restaurants. Basic configurations Detailed configurations • Retail manufacturers’ outlet mall. MALL: Typically enclosed, with a climate-controlled • Retail niche development of a cluster of NEIGHBORHOOD CENTER: Designed to provide walkway between two facing strips of stores. The shops selling the same or related types of convenience shopping for the day-to-day needs of term represents the most common design mode merchandise, such as wedding-related retail consumers in the immediate neighborhood. for regional and super-regional centers. stores or a cluster of delis and food product Roughly half of these centers are anchored by a retailers. supermarket, while about a third have drugstore STRIP CENTER: Attached row of stores or service anchors supported by stores offering health-related • Entertainment-oriented complex with ten- outlets managed as a coherent retail entity with products, sundries, snacks, and personal services. ants such as restaurants, movie theaters, onsite parking, usually located in front of the A neighborhood center is usually configured as a concert halls and performing arts centers, stores. Open canopies may connect the storefronts, straight-line strip with no enclosed walkway or mall gambling casinos, record and video stores, but a strip center does not have enclosed walkways area, although a canopy may connect the store- bookstores, and crafters and craft galleries. linking the stores. A strip center may be configured fronts. in a straight line or have an "L" or "U" shape. • “Power center” with large-format stores grouped around a parking pad, such as Poplar Creek in Hoffman Estates, Ill. • Transit-oriented development. Why retailers like shopping centers Like most community endeavors, successful retail depends upon the business community and local govern- SOURCE: INTERNATIONAL COUNCIL OF CHOPPING CENTERS, INTERNATIONAL ECONOMIC DEVELOPMENT COUNCIL, ment working together to develop an organizational framework. Retailers will expand where they see the RETAIL AS A CATALYST FOR ECONOMIC DEVELOPMENT most potential for profit and least potential for unexpected surprises. The rules are simple for retailers in most shopping centers: minimal disagreement about store hours, sign size, or which party is responsible for shoveling the snow from the front of stores. The tenant lease establishes who will do what and when. Negotiations happen at the outset or the deal falls though. When problems do arise the store manager con- tacts the shopping center manager. What Do You Want from Retail? 35 P P H H O O T T O O

C C O O U U R R T T E E S S Y Y

K V A I L R L E A N G

E H

O E N F

R S I C K H S O A U N M ,

C B I U T Y R

G O F

D E S

P L A I N E S

This community center in Des Plaines., Ill., is anchored by a gro- Lifestyle centers such as Oakbrook Center in Oak Brook, Ill., often Woodfield Mall in Schaumburg, Ill., is a multi-story super-regional cery store, a handful of national restaurants, and is in close prox- include the same tenants as regional malls, but in different configu- center surrounded by satellite retail in separate facilities. imity to residential opportunities, parking, and transit. rations. Retailers often have unique storefronts, and landscaping, fountains, and art are prominent. REGIONAL OR SUPER-REGIONAL CENTERS: COMMUNITY CENTER: Typically offers a wider range Provides general merchandise (mostly apparel) and of apparel and other soft goods than a neighbor- LIFESTYLE CENTER: Usually 250,000 sq. ft or larger, services in full depth and variety. The main attrac- hood center. The most common anchors are dis- with more outside features than community cen- tions are its anchors — such as Macy’s, J.C. count department stores, large bookstores, or elec- ters, such as landscaped walkways, fountains, Penney, and Sears — which are mass merchant, tronics stores. Community center tenants some- benches, a streetscape, and public art. While retail- department, or fashion specialty stores, and typical- times contain off-price retailers selling such items ers are often the same tenants that are found in ly at least 75,000 sq. ft. in size. Regional centers are as apparel, home improvement/furnishings, toys, regional malls, lifestyle centers also include such generally enclosed with an inward orientation of the or sporting goods. Typical anchor stores are up to anchors as movie theaters, restaurants, and depart- stores connected by a common walkway. Parking 45,000 sq. ft. The center is usually configured as a ment stores. surrounds the outside perimeter. In metropolitan strip, in a straight line, or “L” or “U” shape. Chicago, regional centers include Chicago Ridge, Louis Joliet and Fox Valley malls. Regional malls face increased competition from super-regional malls such as far north suburban Gurnee Mills. Old Orchard and Oakbrook Center are former regional malls that have grown into super-regionals with more than one million sq. ft. of space. 36 Retail 1-2-3 C O U R T N E Y

L

Ten principles for reinventing America’s A W

suburban business districts H N Downtown districts, commercial corri- dors, and neighborhood retail 1) Understand your position in the market. 2) Build community support. Municipal officials are particularly interested in 3) Develop a vision and plan. developing their downtowns and commercial corridors (such as Roosevelt Road in DuPage 4) Stress results over regulation. County). Twenty years ago, most national chains 5) Break up the superblocks and optimize avoided downtown locations, largely because of connectivity. perceived parking problems. Today, many such areas are victims of their own success. In The central business district of Evanston, Ill., hosts a diverse range of 6) Embrace mixed uses. bustling downtown Oak Park, for example, the uses, including hotels, independent and chain retailers, government services, and restaurants. 7) Honor the human scale by creating a concern now is that retailers that can afford esca- pedestrian-friendly place. lating rents are displacing those that cannot. 8) Think transit — think density. 9) Create a public/private partnership. The American Planning Association’s A Planner’s 10) Share and manage parking. Dictionary offers the following definitions of downtowns and commercial corridors.

SOURCE: URBAN LAND INSTITUTE, TEN PRINCIPLES FOR REIN- VENTING AMERICA’S SUBURBAN BUSINESS DISTRICTS

CENTRAL BUSINESS DISTRICT: Major commercial downtown center of a community. An urban downtown district that has design features and a diversity of uses not found in the commercial and office districts, including government build- ings, cultural facilities, hotels, apartments, retail shops, and ancillary uses. What Do You Want from Retail? 37

COMMERCIAL CORRIDOR: Intended to allow auto- accommodating commercial development, while encouraging walking, bicycling and transit, with a full range of local and regional retail and service. Industrial uses are allowed, but are limited in size to avoid adverse effects and ensure they do not dominate the character of the commercial area. Ideally, these corridors promote attractive development, an open and appealing street appearance, and compatibility with adjacent resi- dential areas. Development should be pleasant for motorists, transit users, pedestrians, and the businesses themselves. Green Bay Road, which runs north from Evanston through Winnetka, Wilmette, and many other communities, is an excellent example of a commercial corridor that Neighborhood commercial districts like 53rd Street in Chicago’s accommodates autos while still complementing Hyde Park provide retail, services, offices, and housing. Among the transit and walkability. busiest establishments on 53rd Street is Hyde Park Produce, a locally owned grocer that also serves as an informal community center.

NEIGHBORHOOD COMMERCIAL DISTRICT: A) Mix of commercial land uses typically serving more A woman does some holiday shopping in downtown Woodstock, Ill. than one residential neighborhood, usually a Woodstock’s Main Street area features entertainment, retail and dining, along with upper-floor office space, adjacent housing, and a sub-area of the city, with services and retail park. goods. B) Small commercial areas providing lim- ited retail goods and services, such as groceries MAIN STREET: Neighborhood shopping area, fre- and dry cleaning, for nearby residential cus- quently with a unique character that draws peo- tomers. ple from outside the area. Many Illinois commu- nities’ main streets are part of the national Main Street organization, which has specific criteria for membership (see Chapter 4 for more detail). 38 Retail 1-2-3 R J O O S N

LOOKING AHEAD H

S H C A H W R K A I M This chapter discussed the variety of retail types N M and configurations to help your community set S more explicit, realistic goals. But what about retailers and developers? What do they want? How can you make your community more attrac- tive to them without sacrificing your community goals?

The next chapter, “What Do Retailers Want From You?,” explores the importance of clear, efficient development review and permitting processes, as well as the many incentives available to Illinois communities. Whatever your community’s goals — be they downtown TOD with national retailers, as seen here in LaGrange, Ill., (right) or the kind of local entrepreneurship that Elmhurst, Ill. (left) is known for — success will often depend on how realistic those goals are.

What Do Retailers Want from You? 39

3. What Do Retailers Want from You? WHAT TO GAIN FROM THIS CHAPTER:

* Understanding and improving your position in the our community can improve its position in Illinois has several hundred municipalities, all of market the competitive Illinois retail market. whom want the jobs and revenue generated by • Understanding the players in retail development YStrategic use of physical and financial successful retail. This results in a glut of retail incentives can level the playing field between space and stiff competition — weak shopping communities, or even give one side a competi- areas will be surpassed by younger, fresher ones. * The importance of clarity and efficiency • Streamlining the development review process tive advantage. However, misuse of incentives The market determines survival. • Maintaining a list of available properties can leave a community vulnerable.

The danger of a “race to the bottom,” where you * Dealing with incentives UNDERSTANDING AND sacrifice a zoning ordinance, then an environ- • Financial incentives mental protection, and so on, in order to attract s Tax Increment Financing (TIF) IMPROVING YOUR POSITION developers and retailers, is real. Sacrificing too s Façade improvement grants and IN THE MARKET many community standards might result in loans retail, but quite possibly not the retail you want. s Sales tax rebates This is not a suburban problem, nor is it an s Property tax abatement The tools described in Chapter 1 will help you Revolving loan funds understand whether local market conditions are urban problem — it is the reality of operating in s J

O Workforce development

a competitive market. S s

right for retail expansion. If the indications are H

Fee waivers H s that your community is not ready, there are steps A W • Physical incentives K I you can take to improve your market potential. If N Urban design/Infrastructure you have established a concrete vision and goals Your community can S s s Land assembly through a planning process, you can identify the make itself more attrac- s Parking infrastructure, urban design, and other improve- tive to retailers and • Zoning relief ments you need. There are also a variety of developers without sac- • Fast-track development review and one-stop incentives (many of them financial) you can offer rificing your vision. This permitting to entice developers and retailers. chapter explains how • Incentive performance tools the strategic use of incentives and an effi- * The Catch-22 of eminent domain If your community is ripe for retail, retailers and cient review process can developers have likely approached you with pro- improve your position posals. Still, a community can always improve its among your competi- position. tors while also achieving your goals. Communities compete for con- sumer dollars and developer inter- And, even if your market looks promising, local est. The key to retail success, as officials need to understand that northeastern seen here in St. Charles, Ill., is to make your community attractive to shoppers and shops without sacri- ficing the vision and goals in your comprehensive plan. K

40 Retail 1-2-3 A R E N

H E N R I K S O

Building community support for development N ,

C I T Y

The Urban Land Institute states that community O F

building “involves the mobilization of public D E S

and private capital to create assets that engen- P L A I der pride and value in a community.” In other N E words, community acceptance requires inclu- S sive planning processes and communication.

Building community support involves: An anchor store such as Target; a national chain such as Old Navy; and a local retailer such as Ribs ‘n’ Bibs at 57th Street and Dorchester Avenue on Chicago’s south side (below) demonstrate the three primary kinds of retailers. • Creating a three-way partnership between the private sector, government, and the Understanding the players in retail tomer traffic, as well as other retailers that wish broader community. development to tap into the customer stream generated by • Establishing a process that allows each the anchor. partner to be heard, thereby informing and The different players in retail development have reinforcing decisions that guide the rein- distinct interests. It is important to keep those vention of the business district. interests in mind to you develop potential deals. 2. Credit-worthy tenants such as Menards or Gap, which are smaller than anchors but still power- • Ensuring that all partners remain fully ful generators of customer traffic. informed of progress. DEVELOPERS: • Creating an understandable and timely per- Communities typically deal with developers 3. Local retailers, which mitting process. rather than retailers. Developers manage the provide your develop- construction or rehabilitation of retail facilities, ment with a unique and many oversee the leasing and marketing of identity. There are many ways to create support: space. Developers also have experience creating retail mixes appropriate to the project in ques- • The Internet, architectural renderings, virtual tion. computer models, public meetings, commu- BROKERS: Real estate bro- nity workshops, community advisory groups, kers forge relationships town center stakeholder meetings, local with developers and media briefings, design charrettes, and pub- RETAILERS: retailers, and often work lic/private partnerships combine traditional Large format retailers like Target will perform on commission. Many and innovative techniques to tap community many of the developer functions, even providing large retailers work advice, understanding, and support. financial assistance to the developer of a particu- through brokers, so you larly desirable project. Generally speaking, there may need to work

SOURCE: URBAN LAND INSTITUTE are three kinds of retailers: through one to attract 1. Anchor stores, such as Wal-Mart or Home these retailers. Depot, which serve as the key retailer in large developments. These anchors will attract cus- What Do Retailers Want from You? 41

Important Tip: Check the legitimacy of a developer

CONSUMERS: Consumers drive revenue by creat- processes to ensure When approached by a new developer you will have questions. Is this developer qualified? ing profits and generating sales taxes. For many “Cities need to everything involved — consumers, the shopping experience will be as responsibilities, dead- Trustworthy? Experienced? Make the most realize they’re in important as the goods they buy. These con- lines, chains of com- informed decision in order to minimize risk. sumers will shop in settings that appeal to them, the shopping munication, proce- and will travel long distances for unique or mem- center business.” dures — is clear and orable shopping experiences. understood. Inspect past projects thoroughly. JIM KAPLAN JAMES KAPLAN COMPANIES, INC. • Was each project completed on time? On budget? To the satisfaction of the commu- The number of shoppers willing to travel long According to James nity, municipal government, and retailers? distances for convenience goods drops dramati- van Hemert, executive cally. A community that offers both everyday director of the Rocky Mountain Land Use • Has the developer skillfully and efficiently goods and destination goods will capture multi- Institute and author of a 2005 Zoning Practice completed projects similar to yours? Or is ple markets. article on development review, “Local govern- their expertise unrelated? Hiring a large- ment's tendency to divide responsibilities among scale retail specialist for a downtown his- various departments without strong coordination toric preservation project might be a poor choice. THE IMPORTANCE OF CLARITY oversight [also] contributes to an organizational culture that impedes community development AND EFFICIENCY goals.” The uncertainties created by dated or convoluted review processes can ultimately deter Check bank and credit history. Providing good service is a powerful incentive. investment, entrapping communities and citi- • Developers completing a project for a Because time is money, developers appreciate zens in a pattern of status quo. municipal government often file a surety quick turnaround on permits and inspections, bond, letter of credit, or other contract to low fees, one-stop shopping, and recapture minimize the community’s risk. Ask the agreements for extending water and sewer serv- developer for bank or credit institution ref- ice. A positive investment climate is crucial for erences. It is a red flag if the developer is any community. unwilling to provide references. • You can also check the developer’s history with the Better Business Bureau. Streamline the development review process

Very little impedes community efforts to develop retail more than a confusing or disjointed devel- opment review process. Many communities will benefit from examining and revising these 42 Retail 1-2-3

What applicants want in a development review process

1) Predictability Also, regular meetings between applicants and a A list of available properties should be a top pri- a. Clear expectations, no surprises panel of city officials from various departments, ority. Keep the available properties list current. b. Clear process and decision points including engineering, building inspections, Providing outdated information is worse than 2) Fair treatment planning, and the fire department, can flag trou- providing nothing. b. No “good” or “bad” developers — ble early in the process. offer trust and be trustworthy Your list of available properties — both land and 3) Accurate and accessible information retail/office sites — should include: a. Easy to find and understand Maintain a list of available properties b. Clear application requirements and standards Public officials can facilitate site assembly with- out using eminent domain or land banking. This • Address/location 4) Timely processing requires fostering communication between prop- a. Establish dates for hearings early in • Zoning erty owners and developers, and compiling cur- the process rent information about your community’s market • T ype of space (commercial or retail) b. Guaranteed review turn-around times. c. Published commission and council potential, including demographic and economic • Size of available space (acreage or square meeting dates data. footage of building) d. Reasonable application and impact • Number of vacancies fees • Price/rent 5) Competent staff with a balance of “hard” “While the potential for profits is critical to • Name, phone, and e-mail of contact person technical skills and “soft” people skills developers, they are most attracted to juris- 6) Consistent regulations that fit the environ- dictions with stable elected officials and ment, are easy to navigate, and make sense staff in place, plus a clear framework for the development process that makes projects SOURCE: VAN HEMERT, ZONING PRACTICE, 01.05 viable and predictable. Local governments can minimize the higher level of uncertainty associated with redevelopment by providing developers with timely permitting process- es, for example, or a defined timeframe for lease negotiations.”

SOURCE: INTERNATIONAL COUNCIL OF CHOPPING CENTERS, INTERNATIONAL ECONOMIC DEVELOPMENT COUNCIL, RETAIL AS A CATALYST FOR ECONOMIC DEVELOPMENT

A readily accessible list of available properties can transform liabili- ties, such as a shuttered big box, into opportunities for development. What Do Retailers Want from You? 43

Guidelines for municipal incentive policies

DEALING WITH INCENTIVES The goal is to provide just enough incentive to • Establish policies before receiving requests to attract the business. Incentives should be grant- set expectations. ed only if the project could not proceed without Incentives can make or break a deal, so deter- • Do not rely only on the developer’s analysis them. And while general guidelines are helpful, mining how many to offer is a difficult and of what incentives are needed. Consider hir- each municipality has to establish its own poli- important job. ing a consultant or asking a knowledgeable cies regarding economic development incentives. expert for a second opinion. Have an inde- pendent expert review the developer’s projec- tions of tax increment and sales tax revenue. Municipalities with lackluster economies often need to make more concessions than wealthier Accessing a regional economic development • Require the developer to make the case, communities. This does not mean they must sell database including financial projections that support the request. themselves short. Thorough research, a well-writ- The Metropolitan Mayors Caucus and ten plan, and an understanding of the market are ComEd have partnered to offer an economic • Require the developer to reimburse the tools that any community can use to prove its development tool to Chicago-area municipal- municipality for the cost of consultant review. market potential. Building momentum in an ities. ComEd has a license for CoStar, an • Consider including “look-back” provisions, underserved area is also important. Just because extensive database providing information on which permit the amount of incentive to be Business A received an incentive does not mean available commercial and industrial build- re-examined as circumstances change during Business B should get the same deal. Business ings in the region. the course of a project. A’s success should attract Business B, not addi- tional incentives. • Avoid upfront payments. Developers often Through the collaboration between ComEd seek to get the financial incentives early in and the Caucus, communities can access the the deal to help finance the project. However, if the project falls through or generates less Your community’s ability and willingness to offer database to process requests for building information. For example, if a municipality money than projected, the municipality might incentives may be the deciding factor in a deal. not get its money back. In many cases, the incentives are necessary. They learns that a business would move there if it increase potential profitability and defray the could find a 35,000 sq. foot warehouse with • Hire a developer with proven success in the costs of construction, relocation, or rehabilita- a loading dock near freight lines, it can ask type of project being proposed. Make a site tion. Incentives are often needed to convince ComEd to search to determine if any avail- visit to their other developments. developers and retailers to invest in an older able properties match this description within its borders. CoStar provides current and business area instead of a greenfield site. Do not SOURCE: KEN STANDISH, EHLERS FINANCIAL ADVISORS offer an incentive just because the developer or unbiased data, which allows for specific or retailer asks for one. Some companies will broad searches, and offers a standardized request incentives simply because they feel they reporting format. can get them, or because they know that com- munities will typically offer them, regardless of To use the database, communities should whether the incentive is necessary. contact the Metropolitan Mayors Caucus at 312/201-4507. 44 Retail 1-2-3

FOCUS ON TINLEY PARK, ILL. P Tinley Park (pop. 57,477) has clear preferences H O T and will sacrifice substandard proposals in favor O

C O

of realizing its vision and goals. The village has a U R T

commonly understood policy for rating and pri- E S Y

oritizing development proposals. Self-restraint O F

T

ensures that Tinley Park attracts retail develop- H E

R

ments that benefit the community. E G I O N A L

T R A A project will be reviewed for potential incentives N S P O

in the southwest suburb only if it will broaden R T A

the tax base and benefit the taxpayers of Tinley T I O N

Park, plus it meets at least two of the following A U T

criteria: H O R I T Y JOBS CREATED • Does the project create at least 25 new full-time jobs paying at least $19 an hour with full benefits?

JOBS RETAINED • Does the expanding corporate Tinley Park’s preferences for the design and impact of retail developments, as embodied in its criteria for financial incentives, are in line project retain at least 15 full-time jobs paying at with its broader community development strategies and goals, including distinctive signage and planters (opposite page) and a walkable, least $19 an hour with full benefits? livable downtown.

RETAIL SALES • Does the project have annual TARGET DEVELOPMENT AREA • Is the project CAPITAL INVESTMENT • Does the project involve retail sales of at least $10 million (which would locating in a targeted area for local development? a capital investment of at least $2 million? result in Tinley Park sales tax revenue of $100,000 per year)? HEADQUARTERS • Will the project result in a ECONOMIC MULTIPLIER • Is the project in a high regional or national corporate headquarters loca- economic multiplier (3x or more) industry, such TOTAL TAX REVENUE • Will the project result in at tion with at least 25 new full-time jobs in Tinley as manufacturing, research, development, tech- least $100,000 in total annual tax revenue to the Park? nology, office, corporate campus, or healthcare? Village of Tinley Park?

ENHANCEMENT • Will the project enhance or TARGET COMPANY • Does the project meet an improve the profitability and marketability of identified need or targeted firm for the existing businesses? community? What Do Retailers Want from You? 45 P Tinley Park also has extensive criteria for custom • The village uses revenues generated by the new H O T incentives: development to enable the project. O

C O U R T E S

• Incentives are provided on a case-by-case basis, Y

• The sales taxes generated by locating a business O

in response to a request from the private sector, F

in Tinley Park would be new money to the village. T H

and as approved by the village board. E

R E G I O N

• Development of currently vacant property would A L

• The requestor of the incentive must demonstrate T add to property and school tax base. R A

that the incentive is necessary for the develop- N S P

ment to proceed. O R T A T

• The business in question is considered to be an I O N

anchor to a specific area or key industry (i.e., A • Incentives are used primarily to minimize the U T

auto dealerships, retail store, targeted office or H

inequality in taxes between Will and Cook coun- O industrial). R I T

ties, or to support development on Oak Park Y Avenue in and near the historic district. • The incentive has a term of 10 years. • Incentives will be provided within the TIF dis- tricts as specified in the ordinance adopting the • Incentives are based on improvements and TIF. expansions of facilities.

• The village keeps first sales tax dollars in part to • The village will not provide more in incentives cover incremental cost increases to municipal than it will receive from the project. services.

• Incentives will normally be paid based on the tax to be received as a result of the proposed devel- opment. The incentive is usually written so that if the tax increment is not realized by the village. The developer will not receive the incentive. If the tax increment received by the village is less than planned, the incentive paid to the developer is reduced accordingly. 46 Retail 1-2-3

Communities should ask several questions before offering financial incentives Financial incentives bodies continue to receive their share of the How much of an economic impact will a partic- taxes on the initial assessed valuation of the dis- ular retailer or project make on my community? • How much additional new tax revenue will it Incentives can be a financial necessity for your trict. The municipality can use additional taxes produce? community or prospective retailers. Your first from increased value for eligible TIF expendi- • Will it attract other retailers to locate near it? step is to determine whether the proposed proj- tures, which include property acquisition, envi- If so, how much additional revenue will they ect could succeed without incentives. Some ronmental clean-up, and other expenses in con- produce? retailers and developers will seek unnecessary nection with private investment. • How much community money will be needed incentives, so establishing consistent criteria can for infrastructure, parking, land assembly, minimize frivolous requests. Municipalities can etc.? also judge the worth of projects and incentives Formation of TIF districts requires the presence by establishing an expected return on public dol- of “blight,” which is defined by the state (see Based on the answers to these questions, what lars. Appendix). is the net public benefit of the project? • What is the maximum amount of money that could be used as an incentive while main- TAX INCREMENT FINANCING (TIF) taining a positive net public benefit? TIF is an incentive and organizational structure. According to the Ill. Dept. of Commerce and Money generated by a TIF defrays retailer or How efficient is the incentive? What is the Economic Opportunity, 389 Illinois municipali- developer costs, and a TIF district’s manage- return on every $1 of ties in 77 counties administered 998 TIF districts ment can offer rebates, infrastructure improve- public money or fore- as of January 1, ment grants, and acquire land. TIF districts can- gone tax revenue? 2006. TIF allows a not offer property tax abatements. • How does this municipality to pro- return compare to vide initial funding our community’s for a project that is desired per-dollar expected to generate Retailers and developers like TIFs because they return? substantial tax rev- signal a community’s investment in that area. By enue. TIF districts locating in an area currently designated as blight- Would a different proj- enable a municipality ed, prospective investors can be sure that infra- ect result in a higher to borrow against an structure, service, and other market improve- net public benefit? area’s future tax rev- ments will likely follow. enues to fund capital Would a different proj- improvements for ect utilize public money Because the state’s definition of blight redevelopment, or Extensive use of TIF may generate criticism from more efficiently? encompasses a variety of conditions and settings, TIFs can be used to pay-as-you-go invest- taxing bodies that prefer not to wait up to 23 restore a broad range of commercial ments generated by years to benefit from new tax revenue. However, corridors, particular sites, and munici- pal districts. Thus, a commercial strip new development or additional tax revenue might not exist without such as this might be eligible for TIF increment. With TIF, the TIF. Establishing a TIF early in a redevelop- beautification projects, new retail affected local taxing ment process is useful because it helps develop- recruitment, or infrastructure improvements. What Do Retailers Want from You? 47 N I C H O L A S

C Important Tip: Tie rebates to expectations L A R K

A R C

H Some sales tax rebates, such as those in I ment pay for itself. However, if the T E

C Lansing, Ill. (pop. 27,324), are structured T

increments do not pay the debt, the S around quantifiable “extraordinary” expenses, municipality may be left to cover the balance. including demolition of existing buildings, environmental clean-up and remediation, and off-site improvements. These expenses level FAÇADE IMPROVEMENT GRANTS AND LOANS the playing field between a clear site and one that needs rehabilitation or substantial Incentives to improve façades are useful in older The Skokie Theatre’s façade before and after a com- improvement. commercial areas, and typically follow guidelines munity funded renovation project. established by individual municipalities. For example, many communities provide free design Like those in Skokie and Normal, your program Limiting sales tax rebates to these tangible, services and matching grants to cover a portion should take into account the condition of your quantifiable and justifiable items can make of the building's façade renovation costs. community’s retail properties, municipal finances, and retail goals. rebates more politically palatable and reduce the concerns of other constituents.

Skokie, Ill. (pop. 64,678), has a downtown pro- gram that provides free design services and Communities raise funds for façade improve- matching grants to cover 50 percent of façade ment in a variety of ways, but qualifying munici- renovation costs. The maximum grant is palities can receive funding from the federal $50,000 for a single façade or $100,000 for a Community Development Block Grant (CDBG) building with two or more façades facing public program. CDBG is not funded through local tax property. monies, which can minimize the potential for criticism (see Chapter 4).

Downstate Normal, Ill. (pop. 49,927), has a façade improvement program that provides SALES TAX REBATES 50/50 matching grants for qualified façade rehabilitation, repair, or restoration. The maxi- Illinois can rebate any portion of sales tax gener- mum grant award is $15,000 per 20 feet of street ated by a commercial development so long as frontage per project. The maximum grant award they demonstrate a public purpose. Rebates are increases proportionately for buildings wider becoming more common, but can create contro- than 20 feet. Grant requests must be for a mini- versy. For example, long-time local business own- mum of $250. Applicants must match the grant ers do not appreciate prospective competitors with cash (but not labor), and no building may being offered community tax revenues. receive more than two grants per fiscal year. 48 Retail 1-2-3

Sales tax rebates can also include utility or other Taxing districts may abate all or part of the prop- municipally collected taxes. The benefit of sales erty taxes on new or renovated improvements in tax rebates over property tax relief is that they an area that has been designated as an provide direct benefit to retailers, many of whom Enterprise Zone by the Ill. Dept. of Commerce are not property owners. Sales tax rebates create and Economic Opportunity (see Chapter 4). little risk for communities. Instead, the onus is Local governments have the authority to abate Revolving loan fund criteria should be on the retailer to generate the maximum amount property tax on business improvements added to based on community goals and condi- of sales, which benefits both parties. real estate after the creation of the Enterprise tions, such as these for Rock Island’s Zone. Commercial/Industrial RLF. • Funds must be utilized for projects located A program in downstate Rock Island, Ill. (pop. within the city. 38,702), offers qualifying businesses a rebate of The promise of a long-term payoff entices both • At least one job must be created for each one-half of the total amount of local retail sales small and large communities to sacrifice near- $10,000 borrowed. taxes they paid to the city during a 12-month term revenue. In Prairie Grove, Ill. (pop. 1,814), period. New or existing businesses qualify if tax- trustees recently agreed to a 50 percent, 11-year • At least 51 percent of the jobs created able retail sales increase $500,000 or more dur- sales tax abatement to annex a car dealership must be given to persons with low or ing a 12-month period. Rebates can not exceed that had been paying sales taxes to McHenry moderate incomes. $30,000. County. The trustees also agreed to pay $10,000 • At least 50 percent of the total project each to 17 property owners to make the car deal- financing must be obtained from other ership contiguous to the village. The long-term sources. benefit of the additional revenue generated by PROPERTY TAX ABATEMENTS • Loans can be a maximum of $100,000 the car dealership was enough to merit this near- and interest can be as low as 50 percent of term expense. Property tax abatements release a property prime for five years or less; the longer the owner from the responsibility of paying some term, the higher the rate. portion of property taxes. Because many smaller • The Commercial/Industrial RLF is funded retailers do not own their property, this incentive REVOLVING LOAN FUNDS (RLF) with CDBG funds. Therefore, other federal is typically more appropriate for developers. A requirements are required of the borrower. local taxing district may instruct the county clerk Municipalities often offer loans to for-profit and to abate taxes for new or expanded commercial not-for-profit enterprises to improve the physical or industrial facilities for a period of 10 years, up conditions of facilities or equipment. The state to a maximum aggregate abatement of requires that every $15,000 of RLF money must $1,000,000 for all taxing districts. Property tax create or retain at least one full-time job equiva- abatements are not allowed in TIF districts. lent position. Federal CDBGs fund many munici- pal RLFs. What Do Retailers Want from You? 49

WORKFORCE DEVELOPMENT

Funding for workforce development is another financial incentive that communities can use to improve their market potential. It can reduce the start-up costs of new businesses and keep exist- ing firms competitive. TIF money can fund work- force development, and multiple state and feder- al programs exist for the same purpose. The Ill. Dept. of Human Services, Dept. of Employment Security, and Bureau of Workforce Development combine federal and state money that communi- ties can use to assist companies with job train- ing, search, and placement.

Many Illinois communities offer workforce devel- Improvements in Palatine, Ill., — parking, landscaping, improved lighting, and signage — preceded retail development. opment incentives to prospective or existing retailers. • Downstate Pinckneyville, Ill. (pop. 5,452), helps businesses to negotiate the federal Job Training FEE WAIVERS improve the potential earnings of new retail. Partnership Act (JTPA) program, which is Physical incentives also play a large part in administered by a private firm. JTPA reimburses Waiving municipal building fees reduces con- retaining retail or revitalizing a community. businesses up to 50 percent of wages of eligible struction or rehabilitation costs for retailers and Improving infrastructure and providing more effi- individuals during on-the-job training, and sub- developers. This is a standard procedure in many cient parking might appeal to current business- sidizes up to 100 percent of other employment communities and requires no outlay of commu- es, while assembling land could bolster infill and training costs. nity funds. development.

• Riverdale, Ill. (pop. 14,588), uses TIF funds to Physical incentives URBAN DESIGN AND INFRASTRUCTURE offer $10,000 annually in matching job training funds to each company in the TIF district. Not all incentives are financial. There are a num- Many communities are willing to build and at ber of tangible ways to improve your communi- least partially fund the cost of infrastructure ty’s market position. These incentives — urban improvements, including: design and infrastructure improvement, land • Road improvements assembly, and parking provisions — will require your community to spend money, but will also • Extending or upgrading water and sewer facilities 50 Retail 1-2-3

• Parking LAND ASSEMBLY

• Environmental remediation (brownfield Land banking is an expensive and risky programs) development technique to be approached First impressions are important. Retailers seek with informed reservation. Larger parcels communities that look like they care. A common of land are attractive to prospective devel- error for communities is to invest millions in opers, but no community can know for street furniture — brick pavers, historic street sure whether a developer or retailer will poles, trees, and banners — while ignoring run- be interested. If the land is not pur- down buildings that prospective retailers will chased, the community will be left hold- notice. Communities should avoid focusing on ing the property. design flourishes without also addressing basic public facilities. Instead, they should develop an infrastructure inventory to understand a com- Buying property enables a public agency mercial area’s capacity to handle development. to sell for a reasonable price, sometimes “writing Small, vacant lots often have multiple owners, making assembly dif- ficult for developers or retailers. Communities can ease the develop- This should include information about: down” (selling for less than they paid) to attract ment process by assembling land parcels, but might be stuck with a certain development. This enables the public them if development does not catch hold. • Sewer and water service sector to provide a level playing field for econom- • Electrical service ic development opportunities. A related concept is gap financing — using public incentives to fill • HVAC service (usually gas) the “gap” on the developer’s pro forma. Large retail complexes, such as regional and • Parking super-regional centers, need to accommodate shoppers from a large area. Developers need • Street capacity and traffic counts A community can minimize the risk of not sell- proposals that account for parking needs in • Telecommunications (including Wi-Fi and cell ing its assembled land by researching the market addition to the required land for building con- phone service) potential of the parcel thoroughly, making struction. The same is true, at a smaller scale, improvements, and maintaining communication for more traditional mall complexes and strip • Impending construction projects, especially with prospective developers and retailers. centers. Ample free parking will meet the needs roads and bridges of large numbers of shoppers and multiple Large retailers are often willing share the cost of retailers. urban design and infrastructure improvements, PARKING but only if they determine the market opportunity is worth the investment. Public-private partner- Many people use their cars for shopping, so ships are an excellent means of speeding infra- parking is important and retailers know this. The structure improvements along. trick is to find a balance between accommodat- ing the automobile without sacrificing pedestrian access and safety. What Do Retailers Want from You? 51

Best practices for parking structures: Providing and managing parking are more chal- lenging in concentrated retail centers and down- town districts. A surplus of parking, free or oth- • Locate and construct parking garages and lots erwise, can slow travel, degrade the environ- that encourage ground-level activity and make ment, and impede the use of older buildings that pedestrian linkages attractive. may lack required parking. However, a shortage (particularly when mass transit is not a feasible option) can make accessing retail difficult. • Use parking facilities for shared parking, serving multiple uses rather than a single use. Communities should answer these questions before determining a parking strategy. • Provide leasable space along the frontage or on the ground floor of parking garages to generate How does parking intersect with our retail goals? cash flow and offset the capital cost of con- struction. Does currently available parking meet our needs? K A R

E • Is it the dominant feature of the retail envi- N

H ronment? If so, does this impede our retail E N

• Charge a nominal rental or parking fee where R goals? I K S

possible in suburban business districts, espe- O • Is there a consistent shortage or surplus of N , cially parking adjacent to mass transit nodes. C parking? I T Y

O Is there a way to provide necessary parking with- F

D

E out wide expanses of pavement? S

• Explore the option of requiring that parking for P L • Are multiple small lots an option? Metered A I new development is purchased at cost from the N

E on-street parking? Parking garages? government authority’s stock of parking garage S spaces and not provided as surface parking Is there a way to increase the use of available within the development site. parking through shared parking strategies? • Are there uses such as churches or schools,

SOURCE: URBAN LAND INSTITUTE, TEN PRINCIPLES FOR REINVENTING that require large amounts of parking for only AMERICA’S SUBURBAN BUSINESS DISTRICTS specific periods? Could this parking be used for retail at other times?

Parking garages in Chicago’s Hyde Park (top) and Des Plaines, Ill., have leaseable space on the ground floor to generate revenue and better integrate the facilities into their surroundings. 52 Retail 1-2-3

s ie y it it e il iv ar c t e fa c le s g a b le r g el a ic la in v rt h t k le o e e u r t- f v r o a e m t tu h t p e o a a it n m tr c th fe w e o s t r t d o g em f n n g e s an in v ff a a ts in r If metered parking exists, does it meet the s n k a o r fe s k tu te i r p n ib a t o r c THE INTERSECTION OF i m a f u v s n c a t u s o p o r e a e e p o tr demands of the market? n d e s e g iz et l s g id e iz a te m e g g PARKING STRATEGIES, si e v s r a n im tr n n • Would higher prices encourage less traffic e th o n im u e ro n s ki i t r a n co r vi i - r rk OBJECTIVES, AND FACILITIES D o P p i n C n M n a a while also generating additional municipal n ex M E e O P P S O

funds? U Locate facility behind building • •• ••R C E :

S

Integrate facility into site T

Parking improvements can be difficult. Fortunately, A

• T topography • • • • E

there are many free resources that explain financing O F

options, including the State of Maryland’s Driving Screen facility through landscap- M A

ing or architectural treatments • • • R Urban Environments: Smart Growth Parking Best Y L A Practices, which is available online at Landscape interior parking areas N • • • • D

G

www.smartgrowth.state.md.us. O Provide on-street parking V

• • • E R N

Once your parking strategy complements your Construct parking structures O • • • • R ’ S

retail development goals, communicate the quality Build automated parking O F

structures • F • • I

and logic of your parking plan to retailers and C E

developers who need to know their customers will O

Reduce stall dimensions F

• • • • Y • S M

have sufficient parking. A parking plan is a useful T A Provide compact car spaces I R

• L • • • appendix to an economic development plan or a • • T I

G C Incorporate tandem/stacked or R

broader comprehensive plan. Parking will impact O A valet parking • • • W • F • S T the shape, feel, and success of your retail develop- H E , G

ment. Being explicit about your community’s park- Use alternative pavers V D I

• N • R

• I I T V

ing preferences will avoid confusion and set a stan- I K N

Break up large parking lots C G R

E • • • •

J dard for developers and retailers. A complete U

A R

B Utilize open sections P B

understanding of the cost benefit analysis of any • • A

O • N

F

parking requirements will reduce the risk of imple- E O Incorporate vegetative swales and N

V • I bioretention areas on-site • • E

menting a policy that impedes development in your R O

P N Y

community. Construct a green roof M T

• • E

N T

Incorporate retail and commercial S

:

• • S

uses • M

A

R

T Limit curb cuts

• • • G

R O

Provide clearly defined pedestrian W T

corridors • • • H

P

A R

Enhance bicycle and pedestrian K I

entrances • • • • N G

B E

Provide bicycle parking facilities S

T

• • • •

P

R

A

Implement a parking guidance C T

program • • I

• C

E S Utilize low-angle, cut-off lighting • • • What Do Retailers Want from You? 53

FOCUS ON MARENGO, ILL. C I The comprehensive plan for Marengo (pop. Selected Marengo guidelines T Y

O

7,381) is explicit about parking preferences. The F

P • Place parking areas to the side or rear of build- O community aims for pedestrian orientation and R T L its parking standards reflect that while respecting ings along prominent road corridors. A N D , the parking needs of retailers. Marengo’s plan is • Parking areas must be landscaped in the interi- O R E easy to understand, with pictures to demonstrate or and perimeter areas of the site. Parking areas . desired themes. It is also accessible to prospec- that accommodate a significant number of vehi- tive developers and retailers on the Internet at cles should be divided into a series of connect- www.cityofmarengo.com/compplan.html. ed smaller lots, separated by open space medi- ans, islands, and pedestrian walkways. • The parking lot and cars should not be the dominant visual element of the site. Large, expansive paved areas located between the street and building are to be avoided in favor of multiple smaller lots separated by landscaping and buildings. • Parking lots adjacent to and visible from public streets should be adequately screened from view through the use of rolling earth berms, low Many communities, including Marengo, have the goal of including screen walls, changes in elevation, landscaping, natural barriers and other features that reduce parking’s dominance or combinations thereof whenever possible. of the retail environment. The City of Portland, Ore., (above) has already achieved such a goal. SOURCE: TESKA ASSOCIATES, INC. 54 Retail 1-2-3

Important Tip: Regularly review your zoning code Fast-track criteria for Riverside County, Calif. Dated zoning codes can impede retail develop- Fast-track development review and one- ment. For example, many communities contin- stop permitting ue to use Euclidean zoning, where uses remain To qualify for the Fast-Track Program, a proj- separated, despite a desire for mixed-use proj- Fast-track development review streamlines ect must meet one of the following criteria. ects. As you create your economic development approval and permit processes, saving business- • Create a minimum of 75 permanent, full-time plan it is crucial to review your zoning codes to es time and money. However, not every business avoid conflict. jobs. should be granted fast-track status. Your com- munity should establish criteria for determining • Invest a total of at least $10 million in land, Reviewing your zoning should not be a one- which permit applicants are eligible for fast-track buildings, and/or equipment. time event. The needs of retail, office, residen- tial, and other sectors are constantly evolving, review and communicate those standards to • Produce $25 million in taxable annual sales. and preferences also change as the community retailers and developers. evolves. How it works One-stop permitting programs offer applicants a permit coordinator to answer questions, address • Qualified commercial and industrial projects concerns, and help solve problems. Permit coor- can go to public hearing in as few as 60 days. dinators provide front-end assistance and guide Zoning relief • Grading and building plan checks can be the applicant through the permitting process. reviewed in as few as five days. Skokie’s Community Development Department Zoning regulations should match the vision set • A business-friendly Economic Development guides prospective and existing businesses forth in your economic development plan. Your Agency (EDA) professional will shepherd through one-stop permitting. zoning code will lend authority to desired stan- projects through the development review dards for setbacks, residential density, building process. height, and other community features. Incentive performance tools • Pre-development meetings, initiated by your EDA representative, play a vital role in elimi- nating unexpected delays during the develop- Zoning codes can also become a barrier. Some It is important to measure the impact of incen- ment review process. ordinances will deter retailers and developers, tives to help ensure that they continue to be allo- but do not have to derail development. In fact, cated appropriately and efficiently. The first step zoning relief can be a powerful incentive. Any should be to compare the community’s develop- Anheuser-Busch, Nestle Food Company, community can use this as a negotiating tool. ment goals with actual results. Millard Refrigerated Services, Meldisco However, too much relief can compromise the Corporation, Spacemasters Corporation, integrity of the zoning code. For example, a com- Home Express, and Cutler-Hammer are just a munity should think twice before allowing a zon- Have the incentives contributed as intended? few examples of companies that brought ing variance for a curb cut along its main street. • If not, what factors derailed the intended out- greater prosperity to Riverside by participat- If several retailers followed suit, the main street come of your incentive package? ing in the Riverside County EDA Fast-Track could lose its character and eventually deterio- Program. rate in value. • Who is responsible for those factors?

SOURCE: RIVERSIDE COUNTY ECONOMIC DEVELOPMENT AGENCY What Do Retailers Want from You? 55

In hindsight, did the market conditions in your THE CATCH-22 OF EMINENT When practiced cautiously and judiciously, emi- community necessitate incentives? Did the DOMAIN nent domain benefits the public with infrastruc- incentives serve as the deciding factor in prof- ture improvements, educational facilities, and itability? private investment that creates new tax revenues, Eminent domain can be contentious, particularly jobs, and healthy communities. Planning for in the aftermath of the U.S. Supreme Court’s development and revitalization is the responsibil- Next, measure the outcome of your incentive Kelo v. City of New London ruling (see Appendix ity of local government, and Kelo reaffirms the package with your community’s standards. What for case summary). In upholding New London's importance of planning as a first step toward net benefit did the incentives enable? How much action to acquire property as a part of imple- making sound, unbiased local development deci- additional productivity did every $1 of incentive menting an economic development plan, the sions. Local governments should always strive to money create? Court upheld precedent for economic develop- negotiate with property owners, and only use ment as a public good, even for the purpose of eminent domain as a last resort. facilitating private economic redevelopment. Communities can use the following tools to ensure J incentives meet desired performance standards. O H N

B R O

• Clawback Agreement: This ensures incentives O K S ,

are directly related to specific improvements. If N E the improvements are not made, the incentive is W

L O

returned to the community. These improvements N D O

often include new jobs, rehabilitated space, and N

D

increased tax revenue. This lessens community E V E

risk. L O P M E

• Performance-Based Incentive: Rather than pro- N T

viding upfront funds, this incentive rebates a C O M

project’s future tax revenue. There is no outlay M I S

of community money, making it a feasible strat- S I O

egy for communities with limited financial N resources. Since no incentive is ever paid out, the community is never at risk. If the project is not finished or underperforms, the community loses nothing other than time. If the project succeeds, both parties benefit.

An aerial shot of the New London site that was the focus of the Kelo case. Nine properties were taken out of a total of about 115 properties in the project area. These included an oil terminal and a handful of houses (seen at the center-left edge of the picture) adjacent to Fort Trumbull State Park. New London’s carefully created economic development plan demonstrated that private development of the site was in the public interest. 56 Retail 1-2-3

New London had developed a carefully consid- research to demonstrate the market potential of LOOKING AHEAD ered economic development plan as a basis for your retail development and the dividends that action, which did not escape the attention of the will come from its completion. Understanding organizational and funding Court. As stated in the decision, “The City has options will help you tailor the retail develop- carefully formulated an economic development ment process to your community’s needs and plan that it believes will provide appreciable ben- Before exercising eminent domain, communities capabilities. There is a spectrum of models that efits to the community, including — but by no should ask the following questions you can adapt to your circumstances. Chapter 4, means limited to — new jobs and increased tax “Organizing Your Community for Retail Suc- revenue. As with other exercises in urban plan- cess,” explores common economic development ning and development, the City is endeavoring to • Has our development plan been thoroughly and organizational types, funding sources, and the coordinate a variety of commercial, residential, carefully considered, and is it clear that the basics of retail recruiting. and recreational uses of land, with the hope that taking of the parcel is absolutely necessary to they will form a whole greater than the sum of its the success of the completed project and J O

parts." community? H N

B

• Has the planning process been sufficiently R O O

open, so that any public concerns had ample K S ,

Private property must be protected, and recent opportunity to be expressed, addressed, and, if N E W

amendments to Illinois statute require substan- possible, assuaged? L O N

tial public gains from any exercise of eminent D

• Have we exhausted every other option, leaving O N

domain for private economic development. Fair eminent domain as the only tool available to D E market compensation for property and payment V continue the development process? E L O

of relocation expenses are sound practices, P M E

ensuring that property owners are not abused in N T

C

the name of the public good. But while the com- O M

munity-at-large stands to benefit from the end M I S S

results, there is often public criticism when I O municipalities consider use of eminent domain. N Therein lies the Catch-22 of eminent domain. The community might love the end, but hate the means. It is a tricky situation.

Eminent domain has been and should continue to be a tool of last resort; the final option after long public discussion and careful planning. Eminent domain should be used only when pub- Another view of the Kelo vs. the City of New London site. Eminent lic benefit is clear, which will require thorough domain is a valuable and powerful tool, but should only be used in the right situation and as a last resort.

Organizing for Retail Success 57

4. Organizing for Retail Success WHAT TO GAIN FROM THIS CHAPTER:

* Economic development organization options aving an organizational structure in place For example, EVMARK, a nonprofit organization • Municipal economic development departments increases a community’s capacity for that provides marketing, centralized manage- • Economic development corporations Hdevelopment, and partnering with com- ment, and maintenance for Evanston, Ill. (pop. • Merchant associations munity organizations can reduce a local govern- 75,236), aids economic development efforts. • Chambers of commerce ment’s workload and eliminate redundancies. EVMARK is funded by a Special Service Area • Main Street programs Having access to a range of funding sources will (SSA, see pg. 62). In contrast, south suburban • Enterprise Zones reduce risk, increase capacity, and enable a range Blue Island, Ill. (pop. 22,788), has an active of projects. It is especially important for commu- chamber of commerce and a new Main Street * Funding nities suffering from disinvestment or a depreci- program to complement its small planning • Local ated revenue base to know how to create or department. s Business Improvement Districts attract funding without further burdening local s Special Service Areas taxpayers. s Special Assessment Districts Tax Increment Financing Districts A critical function of your economic development s • State arm (whether it is an internal department or an • Federal Finally, recruiting retail requires preparation and external entity) is its capacity to facilitate communication. Be prepared to answer ques- communication among the right stakeholders, tions about your community’s market potential building bridges between the private and public * Retail recruiting and development goals. sectors. • Economic development checklist • Making connections K A R E N

ASSEMBLING YOUR H E N R I ECONOMIC DEVELOPMENT K S O N ,

TEAM C I T Y

O F

Organization matters. Your community’s organi- D E S

zational structure for developing retail should be P L A I transparent and easy to understand. Clarity, effi- N E ciency, and predictability pique the interest of S retailers and developers.

The organizational structures featured here are not mutually exclusive. Communities should cus- Economic development organizations, whether part of the municipal government or not, can encourage and improve tomize economic development efforts based on your community’s retail environment in many ways. A local conditions, including the age and location street fair or a farmer’s market, like this one in Des of the community. Plaines, Ill., attracts a lot of foot traffic, creates a greater sense of community, and builds familiarity between cus- tomers and retailers. 58 Retail 1-2-3

Important Tip: Balance bureaucratic interests

Problems can arise when multiple government Every community will mix and match the options agencies involved in economic development differently, but common economic development have different priorities. organizations in Illinois include:

For economic development groups, the priority • Municipal economic development departments is primarily growth: attracting jobs and increas- • Economic development corporations ing the tax base. Other municipal employees charged with protecting public health and safety • Merchant associations — building code enforcers, health and fire • Chambers of commerce inspectors — have different priorities. • Main Street programs

• Enterprise Zones Blue Island’s Main Street program coordinates summer picnics that Agency managers and elected officials need to draw foot traffic downtown on weekday afternoons. find the proper balance. The comprehensive plan is an important public policy statement Municipal economic development that explains the community’s desire to encour- bonds and Cook County tax abatements — to age economic development and private invest- departments mitigate some of the short-term impacts of polit- ment, and to make the community inviting to ical shifts, and also ensure a shared vision for development and residents. The most common model is a municipal eco- nomic development department. The economic community development. development department is usually part of the Sometimes local regulations need to be re- community development or city planning depart- examined in order to resolve potential conflicts. ment, which is responsible for administering Economic development corporations One city’s downtown redevelopment specialist most land-use regulations. However, this model (EDCs) encouraged the owner of a used book store to can expose long-term community development display his wares on a sidewalk table. This to short-term political changes — either a new An EDC is a public-private partnership — typical- increased sales but also attracted the attention mayor or new council members — which can ly nonprofit — that helps attract and retain busi- of city inspectors, who pointed out that it was lead to a dramatically different environment for ness. Some EDCs have the authority to acquire illegal to set up a table in the public right-of- retail development. land, demolish buildings, and make site way. The municipality changed the law, but a improvements, while others focus more on busi- proactive approach could have avoided the ness retention and leadership training. Funding situation. Municipal departments often establish advisory for EDCs comes from the municipal government committees of private sector representatives — and member donations. The EDC board chair is such as the 25-person Business Development often from the private sector, and serves as a Commission of Schaumburg, Ill. (pop. 72,805), bridge between local government and the busi- which review requests for industrial revenue ness community. G Organizing for Retail Success 59 L E N

E L L Y N

E C O

N Important Tip: Assign a point person O M I C

D E V E

EDCs range in size, authority, and capacity: L O Every deal is unique, and many communities P M

E will benefit from assigning a point person to N T

C be the principal liaison to the developer, retail- O

• The EDC in Glen Ellyn, Ill. (pop. 27,193), pro- R P er, or broker. O

vides an available properties list, demographic R A T I data, and facade improvement programs. It also O N offers site evaluation assistance, networking Having one person represent the community opportunities, and permit process navigation. It is funded by the village and a Special Service can engender trust and clear lines of commu- Area (SSA, see pg. 62). nication and information sharing. The nuances of every deal merit this kind of spe- cialization. • The EDC in Plano, Ill. (pop. 7,338), is similar, but also administers a community-wide busi-

ness retention survey and business assistance G L E

programs to ensure the town's existing employ- N

E L

ers have what they need. Plano’s EDC is also L Y N

involved in developing a municipal incentive E C O

policy. N O M I C

D

E “Retailers go where life is easiest, where they V E L O have the best chance of making a profit with P M E

N the fewest hassles.” T

C O R P

O STEVE HOVANY, STRATEGY PLANNING R A T I O N

The EDC in Glen Ellyn, Ill., works to provide an environment con- ducive for attracting and retaining business and serves as a clearing- house of information. Whether headed out for lunch (top) or to the downtown movie theater, Glen Ellyn’s residents and visitors reap the benefits of the EDC’s work. 60 Retail 1-2-3

Oak Park Retail Support Program Important Tip: Partner to deliver services Oak Park, Ill. (pop. 50,757), offers a matching grant to reconfigure outdated retail spaces Merchant associations Chambers and other non-governmental and make existing businesses more attrac- organizations can partner to deliver services tive. For the village, as a financial partner Merchant associations focus on cooperative under contract with governments. These with the grant recipient, the program repre- activities such as sidewalk sales, civic events, partnerships may deliver services cheaper sents an investment in Oak Park's commer- group advertising, and consensus around uni- than governments can, as well as provide cial building stock, with the added benefits of extra resources for the non-governmental form hours. They also provide input into such increased sales tax revenue and improved group to use on other projects. Grayslake, issues as parking and police protection. quality of life for residents. Any Oak Park Ill. (pop. 21,099), contracts for certain EDC Merchant associations help retail recruitment retail business is eligible for the program. services with its chamber of commerce, efforts by fielding questions from prospective including recruitment support and festival To participate in the Oak Park Retail Support retailers, offering site evaluation assistance, and organizing. Program, a business must: helping with navigation of the permitting • Earn at least 51 percent of its gross income process. from retail. Chambers of commerce • Be an active member in the business associa- tion. There are many merchant associations in Illinois. Similar to an EDC, a chamber fosters communi- • Blend and complement the area’s established cation between local business and government. retail mix. • The Downtown Merchants Association in Mount The difference is that chambers are independent • Comply with the Americans with Disabilities Prospect, Ill. (pop. 54,482), markets the commu- organizations managed by local businesses. Act. nity’s retail core by providing joint event plan- • Obtain bids from WBE/MBE contractors. ning, issuing media releases, purchasing adver- tising, and cross-promoting downtown mer- • Pay two-thirds of project costs (the village pays Chambers provide a place for business and gov- up to one-third). chants. According to its Web site, “Many com- ernment to communicate, and they connect munities like Mount Prospect have found suc- retailers to other segments of the business com- cess in organizing their downtown merchants munity and local government. They also serve as Eligible expenses for the program include, into a cohesive group that collectively promotes but are not limited to: the area, hosts family-oriented, pedestrian-friend- an independent voice to advocate for the needs of local businesses within their community and • Repair work to floors, walls, and ceilings. ly events, and provides cross-marketing and pro- motional opportunities for a minimal invest- beyond. • Upgrading/retrofitting mechanical systems. ment.” • Demolition or reconfiguration of work space. • Installation of permanent fixtures. The chamber in Elgin, Ill. (pop. 98,645), provides • Finishing work (i.e., painting; coverings for • Glen Ellyn’s new Downtown Alliance is a cooper- limited economic development assistance, ceilings, walls, and floors). ative effort of the EDC, chamber of commerce, including demographic reports and municipal • Soft costs (i.e., building permits, space/floor village government, and retailers. The alliance is contacts, and facilitates site searches through plans). funded equally by the groups, and its focus is on the LocationOne system, an online searchable events and marketing to increase the number of database of information on available buildings, SOURCE: VILLAGE OF OAK PARK downtown shoppers. sites, and locations for businesses looking to expand. Organizing for Retail Success 61 L I S A

W O G A

N The Main Street approach

F O R

“The Main Street approach is a community- M A I

N driven, comprehensive methodology used to

Main Street programs S T revitalize older, traditional business districts R E E

T throughout the United States. It is a com-

M

Developed in the mid-1980s O mon-sense way to address the variety of M by the National Trust for E N issues and problems that face traditional C Historic Preservation, the E business districts. The underlying premise of Main Street program the Main Street approach is to encourage uses historical preserva- economic development within the context of tion of downtown centers historic preservation in ways appropriate to as the catalyst for eco- today's marketplace. The Main Street nomic renewal, which approach advocates a return to community may be appropriate for self-reliance, local empowerment, and the some retail development rebuilding of traditional commercial districts projects. Northeastern based on their unique assets: distinctive Illinois currently has The Main Street program in Momence, Ill., holds an annual architecture, a pedestrian-friendly environ- Dixie Daze Festival in June in conjunction with the regional ment, personal service, local ownership, and approximately 20 Main “Drivin' the Dixie” auto tour. There are food vendors, children's a sense of community.” Street communities, in games and activities, bingo, and live music. Historic downtown locales as diverse as Libertyville, Ill., (inset) has prospered because of the Main Street program. Momence, Blue Island, The four points: St. Charles, and ous, between one-half and 12 square miles in Libertyville. Main Street principles are also appli- size, and economically depressed. 1. Organization: Establishing common goals cable for commercial areas beyond the down- and assembling people and funding. town, including highway commercial strips. Businesses in an Enterprise Zones are eligible 2. Promotion: Fostering a positive image and for several state incentives, including a 6.25 per- sponsoring events to bring people into the cent state sales tax exemption on building mate- business district. Enterprise Zones rials and a state utility tax exemption for busi- 3. Design: Getting the business district in top nesses making a $5 million investment and cre- physical shape. In addition to building reha- The Illinois Enterprise Zone Act was designed to ating 200 full-time equivalent jobs, or investing bilitation, this includes window displays, generate economic growth and neighborhood $20 million for the retention of 1,000 full-time parking, landscaping, sidewalks, and street revitalization in economically depressed areas. jobs. furniture. Enterprise Zones are an organizational structure and incentive plan requiring local and state 4. Economic restructuring: Recruiting new busi- cooperation, and are administered by the Ill. Local governments may also offer incentives nesses and finding new uses for old Dept. of Commerce and Economic Opportunity within Enterprise Zones, and many of these local buildings. (DCEO). The act authorized 91 initial zones in packages include the tools discussed in the 1982, and the state legislature can authorize “Financial incentives” and “Physical incentives” SOURCE: WWW.MAINSTREET.ORG additional zones. There are currently 94 through- sections of Chapter 3. out Illinois. Enterprise Zones must be contigu- 62 Retail 1-2-3 B R I T T A

M C K E N N A ,

B A T A

Four options — Business Improvement Districts, V I

FUNDING A

Special Service Areas, Special Assessment M A I N

Districts, and Tax Increment Financing — are S T

Illinois communities have many local, state, and R E

funding sources with built-in organizational E

federal options for funding retail development. T structure.

Local funding BUSINESS IMPROVEMENT DISTRICT (BID)

Even without a special economic development A BID is a districts in which property owners vol- organization, communities should have some untarily tax themselves to fund an improvement assets to reach retail goals. These include: association for a specified area. The impetus for creating a BID generally comes from business and property owners hoping to attract new cus- • General municipal revenue. Generated through tomers by making public improvements such as taxes and fees not necessarily related to retail, increased sanitation, better lighting, etc. BIDs this revenue is pooled into a general fund and require a critical mass of business owners willing used to finance economic development to pay for better municipal services, which often • Taxes on hotels and restaurants. This strategy generates criticism. Some business owners feel relieves the local community of some of the bur- that existing taxes should provide sufficient pub- den of paying for economic development. lic services. • Membership dues from businesses. This Shop owners in downtown Batavia, Ill., open their doors for includes funds from member organizations like “BatFest,” an annual Halloween celebration. Batavia’s Main Street Business Improvement Districts, Main Street Hoffman Estates, Ill. (pop. 52,046), has a BID, as program, which is made possible by an SSA, organizes a variety of programs, etc. does Chicago’s Lincoln Square neighborhood. sales, festivals, and other events to draw patrons to Batavia’s shops. Lincoln Square’s program, which is coordinated by the local chamber of commerce, overlaps with Independent development corporations usually an SSA. It provides services within a defined area receive significant funding from local govern- where property owners have agreed to a special ment. In Glen Ellyn, the EDC is funded by the vil- tax assessment. lage and an SSA tax levied on commercial prop- erties. Economic development organizations can argue — fairly convincingly — that municipali- SPECIAL SERVICE AREA (SSA) ties need to spend money to make money, and upfront funding of economic development ulti- An SSA enables a community to provide services mately benefits the entire community. beyond its basic municipal capacity, and is a common organizational structure for improving Organizing for Retail Success 63 G downtown shopping areas. SSAs are funded by O O D the property taxes of a defined area, which are M A N

collected and managed by the municipality. Every W I L business property within the district contributes, L I A and they all benefit equally from the additional M S

G services. SSAs allow local governments to deliver R O U services to limited areas without the broader P population incurring an additional tax burden.

On the north side of Chicago, the Wicker Park and Bucktown SSA levies an additional 0.30 per- cent property tax on all business properties. These funds are used for special events, street cleaning and snow removal, security patrols, landscaping, and other services.

Steady income can make SSA boards quite pow- erful. Every SSA has a commission that manages expenditures and markets the retail area. For example, Downtown Oak Park — which does promotions, advertising, cultural events, and public area enhancements — is a corporation comprised of property owners and retailers with- in a village SSA. In Batavia, Ill. (pop. 27,172), an SSA funds the Main Street program.

A map of TIF districts (in brown) in Des Plaines, Ill. This map is provided free on the city’s Web site, making it easily accessible for potential retailers or developers. 64 Retail 1-2-3 A good source of information on creating, managing, marketing, and monitoring the TAX INCREMENT FINANCING DISTRICT (TIF) • In 1986, Warrenville, Ill. (pop. 13,217 ), used a TIF to develop Cantera, a multi-purpose retail, performance of TIFs A TIF district is “used in specially designated dis- research, office, and entertainment center on the is the Illinois Tax tricts that are created to improve economically site of a former limestone quarry. The equalized Increment stagnant or disinvested neighborhoods. For assessed value (EAV) for the property included Association, these areas, cities, counties, and redevelopment in the Cantera TIF was $2,640,972 in 1986. By agencies are permitted to use tax increments to 2005, this figure was $144,948,911. Warrenville online at finance their activities within a specific time has thus far received $26,759,411 in net TIF rev- www.illinois-tif.com. frame.” (International Council of Shopping enue from the Cantera TIF. Centers, Retail as a Catalyst for Economic Development) C O U

TIF funds enable a community to pay for land R T E S

acquisition, demolition and site preparation, Y

O

infrastructure, building rehabilitation or remodel- F

T H

ing, studies, surveys, plans, and specifications. E

C I T Y

O F

W A R

With so many TIF districts in Illinois, it is not R E N

surprising communities have devised a variety of V I L L

ways to use them. E

A N D

D U P A G

• Chicago Heights, Ill. (pop. 31,373), a southern E

C suburb of Chicago that has struggled with disin- O U N

vestment, created a TIF on the former site of T Y Calumet Steel in 2006. It is expected to generate more than $2 million over its 23-year lifespan. Chicago Heights plans to use the funds to make significant infrastructure improvements to the former industrial site and provide workforce training for local residents.

The Cantera TIF in Warrenville, Ill., in 2000 (left) and 2005 (right). Once a limestone quarry, the site now hosts an AMC movie theater, a Super Target, multiple hotels, and many other stores and restaurants. Organizing for Retail Success 65

State funding sources for economic Revolving Fund Municipal Brownfields Redevelopment Grant development In conjunction with the Community Development Program Assistance program, the revolving fund is a source Provides financial assistance to municipalities for Illinois has numerous programs to augment of loans for new or existing businesses. As the brownfield cleanup and redevelopment activities local funds for economic development. These Community Development Assistance loans are through the Ill. Environmental Protection Agency. programs can be used to provide direct incen- repaid to local communities by the beneficiary busi- Funds enable communities to assess, remediate nesses, these funds are placed in a revolving loan tives to prospective retailers or developers; oth- and, clean up contamination. Grants max out at fund, rather than returned to the state. An estimat- $240,000. ers can be used to make a community more ed $100 million is in circulation, helping more than attractive, improve its market potential, or 3,300 businesses obtain needed capital. reduce local costs for infrastructure improve- Illinois Development Finance Authority Direct ments, which frees up local funds for other uses. Loan Program Provides competitive financing to creditworthy IDOT Economic Development Program small businesses. Small and medium-sized busi- Provides local governments with 50 percent match- Unless otherwise specified, these state programs nesses can obtain supplemental financing of up to ing grants for public roadway construction and $250,000 for projects that create or retain jobs. Up are administered by the Ill. Dept. of Commerce engineering administered through the Ill. Dept. of and Economic Opportunity (DCEO). to 90 percent of the project may be financed with Transportation. long-term (10-year) loans.

Community Development Assistance Program IDOT Illinois Tomorrow Corridor Planning Grant for Economic Development Program Provides grants to local governments outside met- Helps urban areas fund activities that integrate ropolitan areas for economic development activi- land development, transportation, and infrastruc- ties related to business retention or expansion. ture needs. Applications for grants are evaluated Local governments use these funds to make loans based on how they address congestion relief, mini- of up to $750,000 to businesses locating or mization of infrastructure costs, and other IDOT expanding in their communities. Communities in priorities. metropolitan areas may receive funding directly from the federal government and are ineligible for participation in this program.

Competitive Communities Initiative Helps local governments develop organizational structures for economic development that empha- size self-assessment and create an implementation plan. Initiative specialists work with municipalities, counties, and neighborhoods. 66 Retail 1-2-3

State funds to support businesses REVOLVING LINE OF CREDIT PROGRAM (RLOC) Federal funding sources for economic development Appropriate for small businesses (<500 employ- ees) that have seasonal working capital The state administers several programs to sup- demands. A business may borrow the amount of Community Development Block Grant (CDBG) port businesses. Your community may benefit by money needed to meet the demand for its prod- Administered by the U.S. Dept. of Housing and acting as a broker between the state and eligible uct/service sales and repay the loan from sales Urban Development (HUD), the CDBG program is businesses. DCEO operates the following: one of the federal government’s primary means of revenues. Generally, the program provides credit fostering economic development. Smaller commu- at attractive interest rates for up to 25 percent of nities can receive CDBG funds through the state the total amount, but not less than $10,000 or THE ILLINOIS CAPITAL ACCESS PROGRAM (CAP) government (see the Community Development more than $750,000. Assistance Program for Economic Development Designed to encourage financial institutions to described on pg. 65). make loans to small and new businesses that do not qualify under conventional lending policies. EMPLOYER TRAINING INVESTMENT PROGRAM CAP is a form of loan portfolio insurance, which (ETIP) To receive CDBG funds, an applicant must be a: provides additional reserve coverage to the ETIP grants can reimburse new or expanding lender on loan defaults. • Principal city of a metropolitan statistical area companies for up to 50 percent of the cost of (MSA). training their employees. Grants may be awarded to individual businesses or intermediary organi- • City within other MSA with population of at least PARTICIPATION LOAN PROGRAM (PLP) zations operating multi-company training proj- 50,000. ects. Small businesses (<500 employees) may apply • Qualified urban county with population of at least 200,000. for loans of between $10,000 and $750,000. For more information, visit the DCEO Web site at Funds can be used for working capital, land www.illinoisbiz.biz/dceo. acquisition, and other functions. Loans cannot To receive its annual CDBG entitlement grant, a exceed 25 percent of the total project and may grantee must develop and submit a comprehensive not be used for debt refinancing. plan.

At least 70 percent of CDBG funds must be used for activities that benefit people of low and moder- MINORITY, WOMEN, AND DISABLED ate means. In addition, each activity must meet PARTICIPATION LOAN PROGRAM (MWD/PLP) one of the following federal national objectives: Similar to the PLP program described above, benefit low and moderate-income persons, prevent MWD/PLP is tailored to Illinois small businesses or eliminate slums or blight, or address immediate that are 51 percent owned and managed by per- threats to the health or welfare of the community. sons who are minorities, women, or disabled, with loans up to $50,000 or 50 percent of the total project. Organizing for Retail Success 67

Section 108 Loan Guarantee Program Brownfields clean-up and redevelopment U.S. Dept. of Commerce Economic Section 108 is the loan guarantee provision of the Development Administration (EDA) CDBG program, also administered by HUD, to pro- The EDA offers two programs to assist communi- The U.S. Environmental Protection Agency vide communities with an additional source of ties with struggling economies: the Public Works financing for economic development, housing reha- has several grant programs that provide and Economic Development Program and the bilitation, public facilities, and large-scale physical funding for brownfields assessment, clean- Economic Adjustment Assistance Program. Both development projects. programs provide technical assistance to commu- up, and environmental job training. nities seeking to attract or retain jobs and improve Brownfields Economic Development Initiative market competitiveness. (BEDI) See the EPA Web site at Another HUD program, BEDI funds redevelopment www.epa.gov/swerosps/bf/pilot.htm of brownfield sites to increase economic opportuni- ties for low and moderate-income persons through the creation or retention of businesses and jobs and increases in the local tax base.

U.S. Small Business Administration (SBA) 504 Loan Program. SBA provides loans for 40 percent of the costs, up For more information on the CDBG pro- to $750,000, to purchase, construct, or improve gram and other HUD initiatives, please fixed assets. A private lender (usually a bank) lends contact the Chicago Regional Office: up to 50 percent of the project's total cost while the business must provide the remaining 10 percent. T A R G

U.S. Dept. of Housing and Urban E T

C Development SBA Basic 7(a) Loan Guaranty O R P Through this program, SBA encourages loans to O Chicago Regional Office R A T

small businesses unable to obtain conventional I O

Ralph Metcalfe Federal Building N financing at reasonable rates and terms by provid- Brownfield sites often present great eco- 24th Floor nomic opportunity, and can result in strik- ing long-term loan guarantees for fixed assets. The ing before-and-after images. This Target, 77 W. Jackson Blvd. Illinois State Treasurer's office also provides incen- off I-55 on Damen Avenue on the south- tives for local financial institutions to make SBA west side of Chicago, is the result of a Chicago, IL 60604-3507 loans. brownfield clean-up and redevelopment project (inset). Phone: 312/353-1696 ext. 2713 Fax: 312/353-5417 www.hud.gov 68 Retail 1-2-3

RETAIL RECRUITING ECONOMIC DEVELOPMENT CHECKLIST Our comprehensive plan is less than seven years old. ____ yes ____no Getting ready Our plan includes economic development section. ____ yes ____no According to Mike Ellis, village manager of The economic development section covers retail. ____ yes ____no Grayslake, Ill. (pop. 21,099), “attitude is the essential start point [for retail recruiting]. Getting We have adopted a commercial district plan. ____ yes ____no the entire team ready and willing to treat appli- cants as valued customers is vital. This is a very Our economic development program is in place. ____ yes ____no important aspect of making a community attrac- tive to developers. To us the key is to bring the Our economic development program is staffed. ____ yes ____no various disciplines (building code/architectural, We have established relationships with local brokers. ____ yes ____no zoning, and planning issues/site engineering) together to facilitate an applicant’s process. We have adopted a capital improvement/urban design plan. ____ yes ____no Concurrent reviews, rather than consecutive, are also key. We have pre-application meetings to The urban design plan has been implemented. ____ yes ____no discuss the applicant’s project and any specific issues to consider, and application meetings to Our zoning and other codes encourage economic development. ____ yes ____no review the materials for submittal and set the We have streamlined the development review process. ____ yes ____no clock running for defined municipal response times for applicants.” We can provide local incentives. Infrastructure improvements ____ yes ____no Land acquisition ____ yes ____no Making a community attractive to developers TIF district ____ yes ____no and recruiting retail requires preparation. Before Other districts ____ yes ____no contacting retail developers, use the Economic Façade improvement grants and loans ____ yes ____no Development checklist (right) to make sure you Other financial incentives ____ yes ____no are ready. We have a list of available properties with the following information: Size; parking; traffic counts ____ yes ____no

We have gathered our demographic information, including: Population and households ____ yes ____no Median family income ____ yes ____no Unemployment, poverty rate ____ yes ____no

We have community marketing materials. ____ yes ____no Organizing for Retail Success 69

Important Tip: Create a marketing mindset

Making connections Contact consultants Marketing matters. Retailers and developers They work in many communities, making them want to know that you are serious about your Establishing relationships between communities good sources for information on various develop- goals and committed to developing a mutual- and prospective retailers or developers creates ers, retailers, and projects. ly beneficial relationship. momentum and support. For example, some suburbs conduct pre-construction meetings with Be active in professional organizations and multiple stakeholders, including utilities and attend conventions Attend events sponsored by the International • Make it clear marketing is a top priority of IDOT, early in the review process so these agen- the chief administrator and elected officials. cies will understand the scope of the project. Council of Shopping Centers, National Association of Realtors, Urban Land Institute, and American Planning Association, which bring together retail- ers, developers, mayors, economic development • When hiring key staff seek out service-ori- These types of relationships paid off in La department heads, etc. ented people who will enhance a customer- Grange, Ill. (pop. 15,482), where a central busi- oriented corporate culture; give these peo- ness district redevelopment project required Send RFPs and RFQs ple direct access to policymakers such as removal of underground storage tanks. When an The responses to these requests for proposals the mayor, manager, and city council. adjacent electric pole needed to be supported to (RFP) and requests for qualifications (RFQ) will complete the removal, a village official called a reveal key information about the marketplace. contact at Commonwealth Edison, which took However, only send these to developers when the care of the matter within an hour, averting a pos- economic development agency has a firm project • Provide customer service training to all sible two-week delay. This quick solution was proposal without site assembly issues. employees involved in economic possible because of a pre-existing relationship. development.

Here are some tips for creating relationships: • Examine each phase of the development process to ensure it is conducive to eco- Stay in touch with commercial brokers nomic development while maintaining qual- They understand retailers and developers, and ity municipal standards. depend on good business relationships with local public officials. Bartlett, Ill. (pop. 38,479), for exam- ple, lists the broker on its roster of available proper- • Keep stakeholders informed of community ties. improvements. 70 Retail 1-2-3 T J O A R S

LOOKING AHEAD G H E

H T

A C W O K R I P N O S R

Having come this far, how should you measure A T I O

success? Are there models you can look to for N guidance? What existing trends might impact your retail development in the near future? Chapter 5, “Measuring Success and Looking Ahead,” examines these questions.

Organization matters. Three distinct kinds of retail in Chicago — a row of local entrepreneurs in Rogers Park (center), a mixed-use block in Hyde Park (far left), and a new Target on Peterson Avenue (right) — demonstrate a range of possible retail projects. Whatever your community’s goals are, economic development organizations can increase your capacity, improve access to funding, and eliminate redundancies. Measuring Success and Looking Ahead 71

5. Measuring Success and Looking Ahead WHAT TO GAIN FROM THIS CHAPTER:

* Learn how to measure success our retail goals are the criteria for measur- Absolute revenue gain is important, but many • Survey your base ing success. If your goal is increased rev- retail development goals cannot be measured Yenue, then measure the return on your easily in monetary terms. Developing a unique investment dollars. If your goal is a unique shop- shopping experience, increasing the retail mix, * Learn from models of success ping identity, then survey shoppers to gauge rehabilitating historic facades — these strategies • Matteson: Incentives and communication working together their thoughts. The case studies in this chapter do not translate easily into dollars. In such • Elmhurst: The rejuvenation of a downtown demonstrate the variety of retail goals and met- cases, find other metrics of success. One way is • Andersonville: Retail vitality through commit- rics that must be used to determine success. to engage and ask retailers and the public. ment to locally owned businesses

As you move forward, your retail development * Recognize trends to watch will be affected by external changes, such as • Internet Internet shopping or regional transportation • Sales tax abstainers service, as well as by internal changes, including • New transportation facilities demographics and evolving community priori- • “White elephants” ties. Retail development is not a one-time process, but requires repeated self-assessment * Understand the ongoing retail development and information gathering to ensure long-term process prosperity. J O S H

H A W K I

HOW TO MEASURE SUCCESS N S

The goals of an economic development plan are the criteria by which success should be meas- ured. Judge yourself by the goals you have set.

In many situations, you can determine the effec- tiveness of development strategies by measuring the return on municipal investment in dollars. For example, X amount of infrastructure improvements will generate Y amount of rev- enue. Whether that return is sufficient will depend on community circumstances and the project. A regular review and update process can ensure that retail plans adapt to changing community goals and market. 72 Retail 1-2-3

Determine the effectiveness of your retail development strategies by asking stakeholders.

• Survey new retailers. What was the ultimate Survey your base In-town retailers motivating factor for locating in your com- • What do they think about the changed retail munity? New retailers environment? • What convinced them to move in and open • Is the retail environment still attractive for them? • Survey retailers and developers who opted shop? • Have they benefited from your community’s not to locate in your community. Why did Was it the market? s actions? they choose to go elsewhere? s Was it a strategic decision by the company? s Was it spurred by some change the commu- • Have they suffered because of your community’s nity made? Was it an infrastructure improve- actions? • Survey existing retailers. How do they feel ment or a financial incentive? Was it your about changes to the retail environment? community vision? Something else? Some retailers may see new retail development as an affront while others see opportunity. Business retention is relationship-driven, which • Survey shoppers. How do they feel about the changes you have made? Maintaining communication with new retailers depends on communication. Current retailers will generate valuable information about the will appreciate being consulted on the changing strengths and weaknesses of retail development. retail environment, and you will learn something It will also show the community’s interest in pre- from them. serving a productive retail environment. Shoppers • How do they feel about the changed retail envi- Retailers and developers who did not locate in ronment? This is similar to the shopper inter- Important Tip: Continually assess your your community cept surveys discussed in Chapter 1. market • Why did they not choose your community? s Do they enjoy the retail environment more or less? A new market assessment will indicate whether s What could you have done differently? leakage remains a concern and what your com- s Do they notice the changes? munity’s competitive advantage may or may not be vis-à-vis your neighbors. Keep in mind that another community may have been willing to sacrifice more, which is not nec- Compare these with the results of the surveys essarily a failure for your community. Maintaining conducted during the market assessment. Is a dialogue with developers and retailers can lead there a substantial difference? If so, how does to future deals, particularly if they sense your that difference relate to community goals? genuine interest in cultivating a positive market environment while also staying true to your com- munity’s retail vision. Again, success depends on goals, vision, and your timeline for change. The economic develop- ment plan is invaluable in this, telling you what to examine and how to evaluate change. Measuring Success and Looking Ahead 73

MODELS OF SUCCESS Fortunately for Matteson, the Kmart chain filed While physical and financial incentives cemented for bankruptcy, which terminated the lease on the deal, Matteson’s success is largely the result the empty store. Also, Kimco Realty Corporation, of creativity and communication. Cooperation MATTESON, ILL. the center’s owner, put a new executive, Robert between the public and private sectors is often Incentives and communication working Nadler, in charge of its metro Chicago proper- the key to retail success. together ties.

With kept promises and no demographic surpris- es, a partnership between public officials and a Faced with a major vacancy in a prominent loca- developer can benefit both parties. In Matteson, tion, Kingma and other public officials started a Ill. (pop. 15,675), a southern suburb of Chicago, letter-writing campaign, urging retailers such as persistence and dialogue led to the revitalization Borders Books & Music to open stores in of a defunct big-box shopping center. Matteson’s Matteson. Residents also wrote letters complain- story is site-specific, but exemplifies how com- ing to retailers whose Matteson stores were not munication, relationships, and the strategic use well-maintained or offered inferior customer of incentives can create success. service.

Despite the significant upfront expenses of open- After several months, Kingma met with a ing a large store, national parent companies will Borders official at an ICSC meeting in Chicago. quickly pull the plug on a laggard sales per- “The letter-writing campaign had gotten us former, even with several years left on a lease. noticed,” Kingma said. The attention helped This often results in “ghost stores,” empty hulks Nadler put together a deal with Borders, Linens that can give the impression the community has & Things, and SportMart to anchor what today is This Borders anchors the 150,000 sq. ft. Matteson Center, which fallen on hard times. also includes Linens & Things, SportMart, and Panera Bread. Only the 150,000-square-foot Matteson Center, which a few years ago, the site was empty following the bankruptcy of opened in 2003. “The center is 100 percent Kmart. Through the strategic use of incentives Matteson was able to leased,” Nadler said. revive this now bustling shopping center. In 2000, Matteson was grappling with just such a ghost store (Kmart) at the major intersection of Cicero Avenue and Lincoln Highway (Route The developer invested $8 to $10 million in the 30). When the store “went dark,” Hildy Kingma, redevelopment. In exchange, the village made then the village’s community development direc- infrastructure improvements (new sidewalks and tor, contacted the shopping center owner, hoping storm sewers) and agreed to a $2 million sales to work together to find a new tenant. Because tax rebate. The village also supported Kimco’s Kmart was still paying the rent, she was greeted application for a Cook County Class 8 property with little enthusiasm, she said. tax designation, thus reducing property tax assessments for 12 years. 74 Retail 1-2-3

ELMHURST, ILL. and weekend showings has created a thriving The rejuvenation of a downtown downtown restaurant and retail culture.

Despite a downtown Metra station, proximity to O’Hare International Airport and four express- The city’s loan was a precursor of the current ways, and a median income well above the grant program for eligible businesses in the cen- regional average, Elmhurst, Ill. (pop. 44,976), tral district. Any new or existing businesses that struggled to make its central business district a conform to targeted retail categories and com- destination for shoppers, retailers, and develop- plement the downtown retail mix can apply. ers. The city suffered from disinvestment and These grants have enabled many local entrepre- TIF-defined blight. By the mid-1980s, community neurs to open successful new businesses. leaders and residents wanted change.

Elmhurst’s recent history of entrepreneurship Entrepreneurship, citizen involvement, and the was sparked by its proximity to Oakbrook Center, city government’s strategic use of physical and a prominent lifestyle center in nearby Oak Brook, financial incentives were central to the rejuvena- Ill. (pop. 8,835). According to Emily Bradley, Elmhurst’s downtown centers on the York Theater and Metra sta- tion of the downtown. The success of this part- Elmhurst’s economic development manager, tion, with independent retailers and restaurants lining York, First nership, and its positive effects on the rest of the many residents originally thought the city would and Park streets. community, have not gone unnoticed. Chicago be best served by retailers such as Gap and magazine recently ranked Elmhurst the region’s Talbots. Because the chains already had stores in other communities to assess the competition most livable suburb. Oakbrook Center, they were unwilling to consider and new ideas, and maintains relationships with downtown Elmhurst. So, the city looked instead retailers and developers. Elmhurst’s consultant to niches — primarily entertainment and apparel was a key contributor in several downtown suc- The city's ability to enhance its central business — and began recruiting independent merchants. cesses, including the opening of a Panera Bread district is due in large part to the vision of its The resulting mix gives Elmhurst its own identity, on the northern end of York Street and a Seven mayors, including Abner Ganet, Robert Quinn, a loyal customer base, and opportunity for addi- Ten adjacent to the York Theater. Seven Ten — Charles Garrigues, and Thomas Marcucci, and tional growth. Chocolate Moon coffee house, which is part restaurant, part bowling alley — its city council members. Much of the communi- Salt Creek Pottery, Sushi Nest, and trendy bou- filled an underutilized building (previously a tele- ty’s success can also be attributed to a coopera- tiques such as redE and enzee have larger trade marketing call center) and now complements the tive effort between the municipality and Willis areas because of their unique characters. York Theater’s entertainment atmosphere. Johnson of Classic Cinemas. In 1991, the city assisted Johnson with a $400,000 loan to pur- chase the York Theater, an investment that has Cooperation among the chamber of commerce, In addition, Elmhurst worked with other govern- paid substantial dividends. After multiple renova- merchant’s association, and city government has mental entities to address how its economic tions and expansions, the theater now houses paid dividends. Together, they employ a part-time development affected the community as a whole. nine screens. The traffic from multiple evening retail consultant, who follows retail trends, visits The city signed an innovative intergovernmental Measuring Success and Looking Ahead 75 J O S H

H A W K I N S agreement with Elmhurst School District 205 to wayfinding signs, improved access to the Metra address concerns regarding how TIF districts station, and constructed parking decks off the were impacting school funding. Facing a budget main pedestrian thoroughfares. Elmhurst City deficit, the school district asked the city for assis- Centre also hosts an array of festivals, theme tance in exploring options to increase revenues. nights, and other events, all of which draw shop- Municipal and education officials worked togeth- pers and contribute to the community’s identity. er to agree to release nine parcels back onto the tax rolls to meet much of the school district deficit, and to extend the life of one of the TIFs While Elmhurst has a limited amount of mixed- to compensate for the loss of those parcels. use development, residential construction near the retail district has substantially increased downtown density. Pedestrian traffic is on the Elmhurst City Centre administers a Main Street rise, retail vacancy is on the decline, and inde- program, which is funded by two downtown pendent retailers continue to show interest in the Special Service Areas (there is also a downtown community. The city has plans for further devel- TIF district). The city has improved sidewalks, opment north of the commercial district, and installed lighting and streetscaping, constructed more mixed-use development in early 2007. J O S H

H A W Other tools Elmhurst has used include a façade K I N

S grant program for building owners in the central business district. The city’s economic develop- ment office has extensive marketing materials available for prospective retailers and developers, Tannins and McNally’s Irish Pub are two of the many locally owned businesses that have benefited from Elmhurst, Ill.’s, development and lists of available properties, demographics, programs, including façade improvement grants and loans for local and development resources are available through entrepreneurs. the city’s Web site. Even though Elmhurst has not attracted Gap or Talbots, the city opened the door for entrepre- neurs and a unique experience in its downtown. The Elmhurst Downtown Plan, a component of Working with non-governmental organizations, the city’s comprehensive plan, has been updated the city has nurtured its entrepreneurs, improved and adpoted by the city council. It includes an the retail environment, and widely marketed its analysis of existing conditions, a vision for down- success. The rebirth of Elmhurst’s downtown is town development, alternative plans and proj- the result of cooperation, preparation, and ects, and implementation recommendations. Elmhurst’s Fifth Third Bank, adjacent to the Metra tracks at the strategic government intervention. corner of York Street and Park Avenue, houses two restaurants and a prepared foods store on its first floor. 76 Retail 1-2-3

CHICAGO’S ANDERSONVILLE immigrants in the wake of the Great Chicago Fire Retail vitality through commitment to of 1871, the history of Andersonville is one of locally owned businesses locally owned and ethnically distinct retail. As the immigrant population prospered and moved to The heart of Andersonville, a pedestrian-friendly the suburbs, the North Clark Street retail corridor neighborhood on Chicago’s North Side, has sev- suffered. Stores closed, long-time tenants moved eral independent retailers lining Clark Street, the out, and the 1970s and 1980s marked a low neighborhood’s primary commercial district. point in the neighborhood’s history. Trendy clothing stores, unique bookstores, and quiet coffeehouses are intermixed with Swedish Much of Andersonville’s resurgence in the late bakeries, delies, and 1980s was spearheaded by community leaders. even a Swedish muse- The Community Bank of Edgewater began offer- um. The street also has ing loans to local start-ups, including the upscale Middle Eastern Landmark of Andersonville in 1987. For nearly 20 restaurants, small years, the Landmark was a co-op where small, taquerias, and trendy locally owned businesses could get started while fusion restaurants. sharing resources and costs. As a small business Andersonville is one of incubator, the Landmark was very successful, Chicago’s “hot” neigh- spawning several businesses — Toys and borhoods and property Treasures, Arcadia Knitting, Ruff N Stuff, Chicago values are skyrocketing. Dance Supply, and Painted Light Photos and The contrast here, between a Starbucks and the locally owned Pars Andersonville has kept Framing — that remain open today. Grocery, a Persian food store, is an increasingly common one in national retailers and Andersonville and other gentrifying neighborhoods. formula restaurants at bay in favor of local In 2000, the Andersonville Chamber of Eastern, and gay and lesbian entrepreneurs, the operators, but with ris- Commerce led the planning process for new neighborhood’s unique feel and business owner- ing property values and streetscaping, new streets and sidewalks, beauti- ship patterns have remained consistent. Funded increasing attractive- fication elements, and a branding campaign by the SSA, the chamber commissioned a retail ness, the climate could around the community’s Swedish heritage. economic study to determine whether locally change. Andersonville’s locally owned Special Service Area funds allowed for sidewalk owned businesses contributed more or less to businesses cater to many inter- cleaning, snow removal, and landscaping, as well local economies than comparable national com- ests. Traditional Swedish colors as marketing, safety, and parking initiatives. The petitors. The study, by the Austin, Tex., and of blue and yellow adorn a Swedish restaurant on one side Twenty years ago, chamber’s strategy to revive the local economy is Andersonville-based Civic Economics, revealed of the street, while the popular Andersonville’s situation focused on commitment to locally owned busi- that locally owned businesses contribute “70 per- Women and Children First was markedly different. nesses. While many Swedish business leaders cent greater local economic impact than chains bookstore is a destination for many of Chicago’s north side Founded by Swedish were replaced by Hispanic, Korean, Middle per square foot, or 58 percent by revenue.” residents. Measuring Success and Looking Ahead 77

Preserving, supporting, and extending local retail

In Sept. 2005, Chicago Ald. Mary Ann Smith (48th Andersonville’s success in cultivating a unique Ward) invited ULI Chicago and the Campaign for local flavor and strong local economy has, ironi- Sensible Growth to conduct a two-day Technical cally, created a predicament for the future that Assistance Panel (TAP) to develop recommenda- many upwardly moving neighborhoods and com- tions for nurturing local businesses and reviving a munities will soon face: maintaining local char- long stretch of North Clark Street, from acter while managing gentrification. As the Andersonville extending north through Edgewater. neighborhood’s retail market and reputation con- tinue to improve, its commercial rents rise, high- The TAP made recommendations on a range of er-income residents move in, and some of the issues. locally owned businesses may no longer suit the environment or consumer demand. The benefits Business incubation: Enhance services and prod- of locally owned businesses are clear, but the ucts for local businesses, including identifying market and shifting demographics may be mov- Andersonville’s many locally owned businesses, such as White Attic leaks in retail spending, providing training ing the community in another direction. at the intersection of North Clark Street & Farragut Avenue, contin- through mentoring entrepreneurs, developing ue to thrive, attracting a diverse stream of shoppers. youth entrepreneurship skills, creating physical incubators for small businesses, linking with area universities, and investing capital in start-up busi- nesses.

Parking and traffic: Make parking in the heart of Andersonville more accessible and explore shared use agreements. Consider creating a parking Healthy Mix improvement district to better manage parking availability. Continue to enhance the pedestrian What every community should be striving for — be it a suburban or urban location — is a healthy mix environment. Change wider one-way neighbor- of local, regional, and national retailers. Regardless of demographic trends, communities that can pro- hood streets to two-way. vide the widest variety of goods and services for surrounding residents will retain their unique charac- ter without sacrificing selection by preferring one type of retailer over another. Density: Small-scale retail depends on density of housing and commercial activity to create foot traffic and buyers on the street. Encourage devel- opment above existing one-story structures worthy of preservation. Resist efforts to downzone that make it more difficult to develop mixed-use, appropriate projects that will support neighbor- hood retail.

SOURCE: PRESERVING, SUPPORTING AND EXTENDING LOCAL RETAIL: ANDERSONVILLE AND NORTH CLARK STREET 78 Retail 1-2-3

TRENDS TO WATCH However, the Internet merely allows buying — not a shopping experience. Unique retail districts can draw shoppers throughout the year by pro- In retail, there is always something new. Here are viding human contact and individual character. some areas to watch, as they might affect your Furthermore, the Internet is seldom used for plans and goals. everyday convenience goods (with online grocery shopping as a notable exception). A retail district Internet that offers a mix of convenience and shopping goods will be less susceptible to shopper droughts. The Hyde Park Bank Building, on 53rd Street on Chicago’s south A great deal of shopping today is done online. side, is home to a Binny’s, GNC, and several other small retailers, Some specialty retailers do a thriving Web busi- second-floor bank facilities, and an array of offices above. Even though the bank does not contribute sales tax revenues to the city, ness while also keeping their “bricks & mortar” the property does. facilities packed with customers. Perhaps the Sales tax abstainers Internet is becoming a digital version of the old retail with street frontage. For example, the Hyde Sears catalogs, providing a multitude of choices Most commercial districts have businesses that Park Bank building, on 53rd Street on Chicago’s for people who do not live near retail centers, as do not pay sales tax, including banks, realtors, south side, is home to several small retailers at well as encouraging people to see the merchan- and medical offices. Some argue they need to the street level, walk-in bank facilities on the sec- dise in person. share a greater portion of the tax burden because ond floor, and a variety of offices on upper floors. B

R local governments invest taxpayer money in their Not only do building owners benefit from the I T T

A downtowns — providing everything from sewers

rent, but the community’s sales tax revenues M

C to trees — with the expectation that sales tax K continue to increase despite the presence of E N revenues will make the expenditures worthwhile. N sales tax abstainers. A

B Banks and the like do attract potential shoppers, A T A

V but they also take up valuable space. This is par- I A

M ticularly true for free-standing banks with drive-

A New transportation facilities I N thru access; these auto-oriented facilities

S T R increase the amount of traffic, but often not to E

E Retail follows rooftops, which follow jobs, which T the benefit of retail. follow major transportation facilities. Therefore, it is essential to keep track of major changes, such as the extension of Metra service to Elburn However, communities can use sales tax abstain- and Antioch, which is drawing these ex-urbs into ers to the advantage of retail. Mixed-use develop- the metropolitan orbit. Likewise, the extension of ments with ground-floor retail often include the I-355 North-South Tollway could influence upper-level space that is ideal for offices. growth patterns in the southwest suburbs. You can buy drums online, but the unique experience of an Likewise, many downtown bank buildings have impromptu lesson, like this one in Batavia, Ill., is harder to find on been redesigned to accommodate ground-floor the Internet. A retail district with a mix of goods and individual character can continue to attract shoppers despite increased online buying. Measuring Success and Looking Ahead 79

is clear, predictable, and easy to understand, and the local market really is prime for large-scale retail development, then demolition bonds are useful tools.

This “white elephant” is in a northwestern suburb; many retail In Skokie, Ill., a former Venture was rebuilt into a Jewel and Old corridors have one. Fortunately, there are proactive strategies to Navy in the 1990s. By reusing the space, Skokie was able to save Wauwatosa, Wis., requires large-scale retailers avoid them. itself the expense of demolition. (defined as 50,000 sq. ft. or more) to contribute Municipal officials and retailers should be proac- nance forbidding such restrictions, and home to a demolition fund in case of abandonment. tive on transportation. Retail development is rule communities should have the ability to fol- The fee was set at $0.20 per sq. ft., and, accord- time-consuming; municipalities with emerging low suit, if they wish. For non-home rule commu- ing to local officials, the fee was supported by transportation opportunities should begin plan- nities, legislation has been introduced in the the retail and development community because ning for new retail early to get ahead. The same Illinois General Assembly that would enable it “represented a specific amount that could be is true for communities that might stand to lose them to also ban this type of restrictive included in the development costs of the site” from transportation shifts. If the development of covenants. (see Evans-Cowley, Zoning Practice, 12.05). The an expressway parallel to a major commercial retailer must submit a demolition or reuse plan artery will likely cost you valuable auto traffic, For communities that already have “white ele- within 12 months of closure, or the municipal perhaps now is the time to start planning for phants,” there are a number of strategies for government will use the funds. retail that is less dependent on that traffic and dealing with them. Some communities require more focused on walkability. demolition bonds for large-scale retailers when they remain vacant for a predetermined period of Adaptive reuse is another option, but one that time. Forsyth County, Ga., requires a demolition requires a great deal of creativity. Schools, recre- “White Elephants” bond for any vacancies over 12 months. ational facilities, call centers, medical facilities, Development applicants must post a bond val- worship halls, technical schools, and other Not every large-scale retail development suc- ued at 110 percent of the current cost of demol- large-format purposes can make use of aban- ceeds. When they fail, the result can be a “white ishing a property similar to the one they are pro- doned big boxes if no suitable retailer is interest- elephant,” another name for the abandoned posing. The bond must be renewed annually, ed. Unfortunately, the buildings and connected “ghost store” phenomena seen in Matteson with business license suspension as a punish- property may simply be too large for many pur- (described on pg. 73). Large-scale operations ment. If a property remains vacant for more than poses. However, some retailers will work with close because of changing market conditions, 12 months, the city uses the bond money to community leaders to ease the transition if a demographic shifts, strategic decisions of the demolish the structure, creating a property that closure is expected. Wal-Mart’s policy is to notify retailer, and intense competition. Many leases for might be ideal for redevelopment (see Evans- the municipal government approximately two big boxes have historically had “negative use Cowley, Zoning Practice, 12.05). years in advance of a closure, and then to work restrictions,” which stipulated that when retailers with local leaders to find a suitable replacement leave competitors cannot move in. This means or new use (see Evans-Cowley, Zoning Practice, that one grocery store cannot replace another Opponents argue that such bonds are unfairly 12.05). grocery store, even though the space is suitable. targeted and might even dissuade development The City of Chicago recently adopted an ordi- of large-scale retail. However, if the bond process 80 Retail 1-2-3

THE ONGOING RETAIL • Do your economic development goals continue DEVELOPMENT PROCESS to reflect community interest? s Do they continue to be realistic, given demo- graphic and market changes? Maintaining a healthy retail environment requires constant adaptation to market trends, • Is the quality of your infrastructure sufficient? community demographics, and regional change. It is important to remain vigilant, maintain lines of communication, and stay informed. Your com- • Have your incentive packages worked in an effi- munity needs to be responsive and attuned to cient and productive manner? changing market conditions. s Have they produced their intended results? s If not, are there other strategies you could adopt? You should revisit your economic development plan periodically to measure success or failure, and assess relevance. A regular review cycle You may set a 20-year window for retail develop- can ensure your plan, vision, and goals remain ment in your economic development plan, but current. regional changes, market shifts, and other fac- tors will very likely require you to modify your vision, goals, strategies, and actions before that Keep an eye on the market in your community, window closes. By maintaining frequent and sub- and be mindful of the following. stantive communication with retailers and devel- opers, staying up-to-date on demographic trends The Laundry Mall in Winnetka, Ill., is a multi-level retail cen- • Have your community’s demographics changed? within your community and in your surrounding ter in a refurbished light industrial facility. It was converted What impact has immigration had on your for reuse in 1980. s region, and following market trends and retail community? innovations, you are more likely to achieve sus- s Is your population growing or shrinking, and why? tainable, successful, long-term retail growth and vitality. s Has the buying power of your community changed?

• What is your current market leakage? s Are you attracting dollars or losing them? s What are your neighbors doing? Are you competing for dollars? If so, could you coop- erate?

Resources and Appendices 81

6. Resources and Appendices INCLUDED IN THIS CHAPTER: * Who to contact for help

Illinois Department of Revenue: Can provide data WHO TO CONTACT FOR HELP Appendices on taxable retail sales, which help both munici- * • Other elements of an economic development palities and prospective retailers see how much Many municipalities lack funding for staff or plan money is being spent locally, and on what. ambitious planning efforts. Fortunately, there are • State of Illinois criteria for tax increment www.revenue.state.il.us several other resources available. financing 800/732-8866 • Summary of Kelo v. City of New London • How to find consultants • What to include in an RFP/RFQ Campaign for Sensible Growth: Helps communi- Illinois Environmental Protection Agency: The ties plan for growth while maximizing transit Office of Brownfields Assistance manages grant opportunities and conserving natural resources. and loan programs and offers technical support * Bibliography of resources www.growingsensibly.org to communities. 312/863-6009 www.epa.state.il.us/land/brownfields 888/372-1996

Chicago Metropolitan Agency for Planning: Northeastern Illinois’ land-use and transporta- Illinois Tax Increment Association: Maintains tion entity. Provides limited technical assistance information about how TIF districts work, where and can help interpret census and other relevant they are currently in use, and relevant statistics. data. www.illinois-tif.com www.chicagoareaplanning.org 217/523-4905 312/454-0400

International Council of Shopping Centers: Illinois Department of Commerce and Economic Offers public agencies a wide range of informa- Opportunity: The state's main economic tion and opportunities, including its annual development engine. Administers several pro- spring convention. grams for small businesses and workforce www.icsc.org development. 646/728-3800 www.commerce.state.il.us/dceo 312/814-7179

International Economic Development Council: Offers advisory services and continuing education. www.iedconline.org 202/223-7800 82 Retail 1-2-3

Local Initiatives Support Corporation: Assists • West Central Municipal Conference community organizations to revitalize distressed www.westcook.org neighborhoods. 708/450-0100 www.lisc.org/chicago • Will County Governmental League 312/360-0800 www.wcgl.org 815/722-7280

Metropolitan Mayors Caucus: The Caucus and its nine member Councils of Governments (COGs) Metropolitan Planning Council: Provides techni- can point communities looking for economic cal assistance and public policy guidance. development assistance in the right direction. www.metroplanning.org www.mayorscaucus.org 312/922-5616 312/201-4505 • DuPage Mayors and Managers Conference www.dmmc-cog.org National Trust Main Street Center: Offers many 630/571-0480 relevant work samples and forms, along with • Lake County Municipal League technical assistance. 847/270-3126 www.mainstreet.org 202/588-6219 • McHenry County Council of Governments www.mchenrycountycog.org 847/960-7494 U.S. Department of Labor, Bureau of Labor • Metro West Council of Governments Statistics: Maintains wealth of information on www.metrowestcog.org consumer spending. 815/753-3499 www.bls.gov. • Northwest Municipal Conference 202/691-5200 www.nwmc-cog.org 847/296-9200 • South Suburban Mayors & Managers World Business Chicago: Promotes metropolitan Association Chicago as a business-friendly environment. www.ssmma.org Provides free economic and industry data, infor- 708/206-1155 mation on site location, state and local incen- tives, and contacts to the region's private, public, • Southwest Conference of Mayors and nonprofit sectors. www.swmayors.com 708/403.6132 www.worldbusinesschicago.com 312/553-0500 Resources and Appendices 83

APPENDIX A: OTHER ELEMENTS OF AN ECONOMIC DEVELOPMENT PLAN S O U R

DATA GATHERING & ANALYSIS ACTIVITIES PLANNING & IMPLEMENTATION RESOURCE IDENTIFICATION ACTIVITIES C E :

ACTIVITIES V I L L A Organizational - Develop common vision - Develop action plan (include what, - Explore stakeholder interest & potential for G E

who, when & sequence) investment: city, county, state, federal, O

Development F

- Create strategic plan with measurable objectives private T I - Explore regional opportunities for col- N L - Perform community economic analysis to identify market forces laboration - Determine human resources necessary & E Y

P

available for implementation A R K Infrastructure - Collect data on infrastructure capacity, water, sewer, utilities, etc, - Include infrastructure upgrades in - Identify capital resources (revolving loan Development action plan funds, angel networks, venture capital, - Inventory business parks, sites, buildings & brownfields development authorities etc.) - Create development plan for identifying - Identify gaps in facilities or capacity, area of growth, needed or assembling sites suitable for devel- - Identify resources and capacities for resid- improvements opment ual development such as housing, educa- - Include infrastructure upgrades in action plan tion, health care, etc. - Create development plan for identifying or assembling sites suitable for development

Business - Identify current efforts at retention & expansion - Include business retention & expan- - Search local, regional, state, & federal gov- Development sion; entrepreneurial development; ernment agencies for financial resources - Identify current support for entrepreneurial development business growth/attraction in Action to meet implementation/action plan - Identify efforts for new business attraction Plan - Describe programs for downtown development - Create plan for downtown development - Identify gaps or improvements needed in any of above - Perform industry analysis to identify types of business suitable for clusters

Workforce - Conduct a labor market analysis - Form partnerships with local, regional - Investigate financial & technical assistance Development & state organizations to assist in programs to assist in implementation of - Study community demographics and trends matching trained workforce with workforce - Analyze capacity of education system to meet needs of current and future jobs future workforce - Create and promote lifelong learning opportunities

Community - Inventory sites & attractions for tourism - Create a marketing & development plan - Investigate financial & technical assistance Cash Flow for tourism and residents programs to assist in implementation of - Inventory services & facilities attractive to seniors community cash flow development, Development - Target support & supplier industries for tourism, marketing, healthcare develop- - Study economic data to identify primary sources of income and wealth business attraction of current base in the community ment, etc. - Create plan for pursuing outside invest- - Inventory & classify existing industries by type - Pursue state & federal grants to support ments in current economic activity industries - Interview local industries to identify support/supplier systems used & - Create plan to meet needs for new needed products and services 84 Retail 1-2-3

APPENDIX B: STATE OF ILLINOIS CRITERIA FOR TAX INCREMENT FINANCING Illinois law includes three sets of conditions to VACANT LAND must have at least two of the fol- To be designated as an industrial park conserva- qualify an area as a TIF district: lowing six factors that impair sound growth of tion area: the area, using comparable standards of evi- • blighted conditions; • The municipality must have had a relatively high dence as for improved areas: unemployment rate and the area to be designat- • conservation conditions; or • Obsolete platting ed must be located within the municipality or • industrial park conservation conditions. within 1.5 miles of the municipal boundaries and • Diversity of ownership be annexed to the municipality; be zoned indus- trial prior to the establishment of the TIF and To be designated as a blighted area: • Tax and special assessment delinquencies contain vacant land suitable for an industrial park • Environmental contamination IMPROVED PROPERTY (land that is not vacant) and a blighted or conservation area contiguous must contain at least five of 14 factors that make • Declining equalized assessed value to the vacant land. it detrimental to the public safety, health, or wel- • Deterioration of structures or site improvements fare of the community. These factors must be on adjacent land present and documented to a meaningful extent To be designated as a conservation area: so that a municipality may reasonably find that • At least 50 percent of the structures in the each factor is clearly present and reasonably dis- In addition, there are six other types of vacant improved area must be 35 years old; and tributed throughout the improved part of the land that can be designated for TIF. They include area. These factors are: • Three of the 14 factors for designation of a blight- land that was blighted before becoming vacant; ed area and another factor entitled "excessive • Dilapidation unused quarries, mines, or strip mine ponds; vacancies" must be present. unused rail yards, rail tracks or railroad right-of- • Obsolescence way; chronic flooding that adversely impacts on SOURCE: ILLINOIS TAX INCREMENT ASSOCIATION • Deterioration property in the area and is caused by improve- WWW.ILLINOIS-TIF.COM ments recently constructed in the area; unused • Illegal use of individual structures or illegal disposal sites; large areas that have • Structures below minimum code standards been previously designated as a town center and • Excessive land coverage and overcrowding of meet other requirements. structures and community facilities • Lack of ventilation, light, or sanitary facilities • Inadequate utilities • Excessive land coverage • Deleterious land use or layout • Environmental contamination • Declining equalized assessed value • Lack of community planning Resources and Appendices 85

APPENDIX C: SUMMARY OF KELO V. CITY OF NEW LONDON SUPREME COURT OF THE UNITED STATES ular class of identifiable individuals,” ibid. lenges of the individual owners, not on a piece- KELO v. CITY OF NEW LONDON Moreover, while the city is not planning to open meal basis, but rather in light of the entire plan. CERTIORARI TO THE SUPREME COURT OF the condemned land—at least not in its entire- Because that plan unquestionably serves a pub- CONNECTICUT ty—to use by the general public, this “Court lic purpose, the takings challenged here satisfy No. 04—108.Argued February 22, 2005—Decided long ago rejected any literal requirement that the Fifth Amendment. P. 13. June 23, 2005 condemned property be put into use for the … public.” Id., at 244. Rather, it has embraced the After approving an integrated development plan broader and more natural interpretation of pub- (c)Petitioners’ proposal that the Court adopt a new designed to revitalize its ailing economy, respon- lic use as “public purpose.” See, e.g., Fallbrook bright-line rule that economic development does dent city, through its development agent, pur- Irrigation Dist. v. Bradley, 164 U.S. 112, 158—164. not qualify as a public use is supported by nei- chased most of the property earmarked for the Without exception, the Court has defined that ther precedent nor logic. Promoting economic concept broadly, reflecting its longstanding poli- project from willing sellers, but initiated condem- development is a traditional and long accepted cy of deference to legislative judgments as to nation proceedings when petitioners, the owners governmental function, and there is no princi- what public needs justify the use of the takings of the rest of the property, refused to sell. pled way of distinguishing it from the other pub- power. Berman, 348 U.S. 26; Midkiff, 467 U.S. Petitioners brought this state-court action claim- lic purposes the Court has recognized. See, e.g., 229; Ruckelshaus v. Monsanto Co., 467 U.S. 986. Berman, 348 U.S., at 24. Also rejected is petition- ing, inter alia, that the taking of their properties Pp. 6—13. would violate the “public use” restriction in the ers’ argument that for takings of this kind the Fifth Amendment’s Takings Clause. The trial Court should require a “reasonable certainty” court granted a permanent restraining order pro- that the expected public benefits will actually (b)The city’s determination that the area at issue accrue. Such a rule would represent an even hibiting the taking of the some of the properties, was sufficiently distressed to justify a program greater departure from the Court’s precedent. but denying relief as to others. Relying on cases of economic rejuvenation is entitled to defer- E.g., Midkiff, 467 U.S., at 242. The disadvantages such as Hawaii Housing Authority v. Midkiff, 467 ence. The city has carefully formulated a devel- of a heightened form of review are especially U.S. 229, and Berman v. Parker, 348 U.S. 26, the opment plan that it believes will provide appre- pronounced in this type of case, where orderly Connecticut Supreme Court affirmed in part and ciable benefits to the community, including, but implementation of a comprehensive plan reversed in part, upholding all of the proposed not limited to, new jobs and increased tax rev- requires all interested parties’ legal rights to be takings. enue. As with other exercises in urban planning established before new construction can com- and development, the city is trying to coordinate mence. The Court declines to second-guess the a variety of commercial, residential, and recre- wisdom of the means the city has selected to Held: The city’s proposed disposition of petition- ational land uses, with the hope that they will effectuate its plan. Berman, 348 U.S., at 26. Pp. ers’ property qualifies as a “public use” within form a whole greater than the sum of its parts. 13—20. the meaning of the Takings Clause. Pp. 6—20. To effectuate this plan, the city has invoked a state statute that specifically authorizes the use 268 Conn. 1, 843 A. 2d 500, affirmed. (a)Though the city could not take petitioners’ land of eminent domain to promote economic devel- Stevens, J., delivered the opinion of the Court, in which simply to confer a private benefit on a particular opment. Given the plan’s comprehensive char- Kennedy, Souter, Ginsburg, and Breyer, JJ., joined. private party, see, e.g., Midkiff, 467 U.S., at 245, acter, the thorough deliberation that preceded Kennedy, J., filed a concurring opinion. O’Connor, J., filed a dissenting opinion, in which Rehnquist, C. J., and the takings at issue here would be executed pur- its adoption, and the limited scope of this Scalia and Thomas, JJ., joined. Thomas, J., filed a dis- suant to a carefully considered development Court’s review in such cases, it is appropriate senting opinion. here, as it was in Berman, to resolve the chal- plan, which was not adopted “to benefit a partic- SOURCE: CORNELL LAW SCHOOL, SUPREME COURT COLLECTION. WWW.LAW.CORNELL.EDU/SUPCT/HTML/04-108.ZS.HTM 86 Retail 1-2-3

APPENDIX D: HOW TO FIND CONSULTANTS If an agency (or municipality) decides to hire a Solicit and file for each firm the following Developing a good definition of the task is diffi- consultant, it must develop a list of consultants information: cult. If the task definition is too specific, it may from which to choose. This list can be developed 1. Name, address and telephone number limit the creativity of the consultant. If the defini- by searching a number of sources: personal tion is too general, it may result in the consult- 2. Types of services for which the firm is qualified referrals; professional directories; award winners ant producing something that constitutes satis- identified through professional organizations; 3. Year the firm was established, as well as former factory professional work but does not resolve news items in newsletters, newspapers and mag- firm names the problem. If the hiring agency is uncertain azines; consultant calling cards; consulting firm 4. Names of principals and key personnel and their how to define the task, it can provide a back- brochures; and, as a last resort, the telephone experience and qualifications ground description of the problem or issue as directory. 5. Size of staff context for the RFQ or RFP processes. 6. An illustrative list of recent projects completed Some agencies (or municipalities) use a more for purposes of referral formal procedure for establishing the list of avail- able consultants. They maintain and periodically 2. Define the roles Organize for selection update a list of consultants developed from pro- Defining the respective roles of consultants and cedures involving responses to requests for qual- 1. Define the task staff is also important. In many cases, the com- ifications (RFQs). Consultants who want to be munity already has much of the data that will be placed on the list may apply for consideration. If Perhaps the most important step an agency necessary to complete a project. In other cases, there are special projects that must be done for must take before initiating the consultant selec- little or no reliable data exists. Gathering data is which only a few qualified consultants are listed, tion process is defining the problem, task, or expensive. Thus, a clear definition of what data the agency can add to the list by using the tech- project requiring consulting services. There are, the planning agency can provide from its own niques outlined below. Maintaining a formal pool of course, circumstances when the agency has files or from other local departments and entities is particularly useful for a large community or for difficulty in defining the problem, in which case is very important in helping the consultant define any other agency that may use consultants rela- it should consider retaining a consultant for that the tasks. It is also important to define the level tively frequently. In order to make this preselect- purpose. In defining the task, factors to be con- of support and review that local staff will provide ed list of consultants most useful, it can be sidered include: for the project. divided into specialty groups. Many consulting • precise goals of the project firms have expertise in a number of fields. Consequently, an agency that lists consultants • technical, political and administrative parameters This material is a revised and edited excerpt from Selecting under functional categories should cross-tabu- • division of labor between agency personnel and consultant and Retaining a Planning Consultant: RFPs, RFQs, late these consultants in all the categories in Contracts, and Project Management by Eric Damian Kelly, which they have expertise, a process easily • desired product AICP. It is Planning Advisory Service Report No. 443, pub- accomplished with a database program. • timetable for completion lished by the American Planning Association, February 1993. It is used by permission. • total project budget • expected problems and constraints Resources and Appendices 87

APPENDIX E: WHAT TO INCLUDE IN A REQUEST FOR PROPOSAL (RFP) RFP may be accompanied by appendices, maps, is not necessary for a planning department that is of the RFP by misstating the agency's needs or by drawings, and other backup material. However, the clearly a line agency within a municipal govern- conveying inaccurate signals about how the pro- RFP itself should be a relatively brief document. ment. However, it can be very important for inter- posals will be evaluated. Even on a rather large or complex project, the vari- governmental agencies and other entities. Names ous elements can generally be covered in 10 to 25 of public authorities and special districts, such as single-spaced pages. sewer districts, can be particularly misleading. Such Write clearly. Avoid jargon. Use commonly under- an entity is often named after a city, town, or coun- stood terms, rather than acronyms or abbrevia- ty with which the agency may or may not be coter- tions. Do not use general terms like "facilities" if minous. The difference should be pointed out, you mean "roads." though it need not be explained in detail in the (1) Cover sheet introduction.

A lengthy RFP should have a cover sheet giving the Emphasize what the agency needs from the con- RFP title, project or program title, name of the issu- sultant. Although the RFP certainly should identify (3) Description of the project or program ing entity, and date the proposal is due. any critical or mandatory steps in the process, such This section should establish the context for the as public meetings, the proposal process often work to be performed and help the consultant works best if it leaves the work program open to suggestions from proposing consultants. Unless (2) Introduction judge the level of effort required for various tasks. If the project or program is very complex, the details the purpose for hiring the consultant is simply to The introduction should identify and describe, in can be relegated to an appendix or other attach- augment staff on a project, the same expertise that no more than one paragraph, the project or pro- ments. The important points to cover here are: the consultant brings to the substantive aspects of gram for which the consultant is required and its the project should enable the consultant to develop • the purpose of the project or program (what it is current status. It should then briefly state the a responsive work program. There are two reasons supposed to accomplish and for whom) nature of the consulting assistance being sought. for encouraging consultants to do so. First, if the This should be carefully worded. If the job requires • its basic components — management, structure, consultant has significant experience with the type an interdisciplinary team, it is best to talk about the processes, and personnel of work involved, the consultant's personnel should know more about what should be in such a work end product or type of activity (e.g., an environ- • any innovative or unusual aspects mental impact assessment or a development plan), program than the agency staff. Second, evaluating rather than a specific type of firm. Your preferences • the site(s) or geographic area(s) involved independently developed work programs is an about the type of firm can be better explained later, • a proposed schedule and present status of the excellent way to evaluate a consultant's under- in the qualifications section. The introduction project or program standing of the project and approach to the project, should state the amount budgeted for the pro- as well as the quality of the consultant's work. posed work. Finally, the due date for the proposal should be included in the introduction, with a refer- (4) Description of Services Required ence to the directions for submission that will be This section also should provide a schedule for the described later in the RFP. This is the heart of the RFP. Take great care with it completion of the project that identifies major proj- because this is the section the consultants will read ect milestones. If there is a particular number of Describe the issuing agency and its relationship to again and again, weighing its every nuance. If care- public meetings involved in the project or if the other entities if that is not obvious. This suggestion lessly written, this section can defeat the purpose goal is to have a report or plan ready for a meeting 88 Retail 1-2-3

that already has been scheduled, that information within the agency's budget. If an agency's expecta- in which the agency reimburses a consultant on a should be included in this section of the RFP. tions of services far exceed its proposed budget, it fixed formula for professional time and expenses. is easier on all parties if consultants are aware of that discrepancy initially and can inform the agency of that fact without putting the consultants or the (7) Qualifications (5) Budget agency through the demanding process of prepar- An agency that uses the two-part, Request for Most agencies do not include budget information ing and reviewing proposals. If an agency's budget Qualifications (RFQ)/RFP process will have most of in an RFP. The theory is that consultants who know exceeds its expectations (a very rare circumstance), the information about qualifications it needs from what the budget is will automatically submit pro- one or more reputable firms will bid less than the the RFQ. At the RFP stage, it should ask for an posals that "spend the budget." That may be a budget or offer a range of additional and perhaps update to the RFQ if there has been a significant legitimate concern. On the other hand, a consult- unneeded services. The agency can then select one lapse of time between the two. The agency also will ant with no idea of the budget for a proposed proj- of the lower-priced proposals or negotiate a want one additional set of information. The propos- ect may have great difficulty in submitting a reduced contract for less than the full scope of al should specify what personnel will work on the responsive proposal. Where an agency fails to spec- services proposed by the selected firm. project. It also should include short resumes on ify a budget, cost proposals may range up to a high those specific individuals, if those resumes were of four or five times the lowest-cost proposal. In not included in the RFQ. those circumstances, there may be only one or two An agency can maintain some price competition in proposals that are within the project budget of the the process and still provide guidance to consult- local government and thus only one or two propos- ants by publishing a budget range. However, the als from which to choose. A proposal that falls far real issue in selecting a consultant is not price but An agency that goes directly to the RFP stage below the anticipated budget probably will include value. If every consultant competing for a proposed should request information about qualifications as far less in the way of services than the agency project submits a budget for the same amount, the part of the proposal. That should include the spe- wants or needs. It is very difficult to compare pro- agency can easily compare the proposals to deter- cific qualifications of any personnel to be assigned posals with extreme variations in budget because mine which offers the best value. That is a far more to the project. there are too many variables. If two qualified firms practical exercise than attempting to compare offer exactly the same range of services at signifi- diverse proposals with vastly different budgets, cantly different prices, the agency has something to hoping to renegotiate one of the proposals to the The RFP need not be very specific when requesting compare. If two qualified firms offer vastly different appropriate level of services for the budget. information on consultant qualifications. A firm scopes of services at the same price, the agency that submits a standard brochure unrelated to the can select the scope of services that best suits its proposed project without other information proba- needs. However, when there is little in common bly will not give the project the attention that it among proposals from qualified firms, comparison (6) Type of contract needs and does not deserve serious consideration. is difficult, indeed. Indicate what type of contractual arrangement the There are few disadvantages to sharing budget agency will use. Professional services contracts information. The agency that publishes the budget generally fall into one of two categories: fixed-price can still rank proposals competitively based on (also called lump sum), in which the agency which qualified consultant will provide the best receives a defined scope of services for a fixed value — the most appropriate package of services price; and time-and-expense (also called cost-plus), Resources and Appendices 89

(8) Evaluation criteria (9) Directions for submission

Explain how the proposals will be evaluated and, in The RFP should include a simple statement of the general terms, by whom. It is helpful to both par- time (date and hour) and place for submission of ties if the consultants know how much weight will the proposal and the number of copies required. be given to specific aspects of their proposals, such Since proposals are often delivered by messenger as cost, technical approach, relevant experience, or overnight delivery service, give a street address qualifications of the project team, familiarity with (with office number), as well as the agency's mail- the geographic area, and logistical capabilities. It ing address and phone number. If there are sealed- also is useful to let the consultants know what type bid requirements or if cost proposals should be of group will review the proposals. A consultant submitted separately, those directions should be may prepare a proposal in one way if the planning contained in this section. commission is to make the selection and in a very different way if technical experts from the staff will This material is a revised and edited excerpt from Selecting make the selection. Some consultants probably will and Retaining a Planning Consultant: RFPs, RFQs, Contracts, and Project Management by Eric Damian Kelly, learn who is on the selection team. Disclosing that AICP. It is Planning Advisory Service Report No. 443, pub- information in the RFP keeps the process fair to all. lished by the American Planning Association, February 1993. If state law or local rule prohibits the consultants It is used by permission. from contacting selection team members directly, the RFP should say so and selection team mem- bers should be clearly instructed to turn away (and probably report) any attempted contacts from con- sultants. Planning consultants typically do not attempt to lobby selection committee members, but some do. If there are rules on the subject, they should be stated clearly. 90 Retail 1-2-3

BIBLIOGRAPHY OF RESOURCES The list below includes materials referenced Congress for the New Urbanism, Northeast Evans-Crowley, Jennifer. “Can Communities explicitly in this workbook, as well as additional Midwest Institute. Strategies for Successful Infill Really Control Their Big Boxes?” Zoning Practice references that may be useful. Development. Washington, D.C. 2001. 22, iss. 12 (2005). www.nemw.org/infillbook.htm

The City of Calgary. Transit Oriented Development: Goldberg, David. Choosing Our Community’s Best Practices Handbook. City of Calgary, Alberta, Davidson, Michael and Fay Dolnick. A Planner’s Future: A Citizen’s Guide to Getting the Most Out Can. 2004. Dictionary. APA Planning Advisory Service. of New Development. Washington, D.C.: Smart www.calgarytransit.com/html/transit_oriented_d Chicago, Ill. 2004. Growth America, 2005. evelopment_guidelines.pdf sgusa.convio.net/site/PageServer?pagename=gui debook Dittmar, Hank. “Driving Growth Through Transit- Campaign for Sensible Growth, Metropolitan Oriented Development.” Zoning Practice 21, iss. 8 Mayors Caucus, and Metropolitan Planning (2004). Goodman Williams Group. Market Assessment: Council. Planning 1-2-3. Chicago, Ill. 2006. City of Des Plaines. City of Des Plaines, Ill. 2005. www.growingsensibly.org/cmapubs//plan- www.desplaines.org/Services/CommunityDevelo ning123.asp Downtown Mount Prospect Merchants pment/ComprehensivePlan/MarketingAssessme Association. nt.pdf www.mpdma.org Campaign for Sensible Growth and Urban Land Institute-Chicago. Preserving, Supporting and International Council of Shopping Centers, Extending Local Retail: Andersonville and North Economics Research Associates. Downtown International Economic Development Council. Clark Street. Chicago, Ill. 2006. Austin Retail Market Strategy. City of Austin, Tex. Retail as a Catalyst for Economic Development. www.growingsensibly.org/cmapdfs/TAP- 2005. New York, N.Y. 2001. AndersonvilleNorthClark.pdf www.ci.austin.tx.us/downtown/downloads/dtaus tin_retail_strategy.pdf Keyser Marston Associates, Inc., Portland Center for Urban Economic Development, The Development Commission. Retail Merchandising University of Illinois. A Manual for Preliminary Elmhurst Economic Development Department. A Mix Plan. City of Portland, Ore. 2000. Analysis of Neighborhood Retail Opportunities in Vision for Elmhurst. City of Elmhurst, Ill. 2006. Chicago. 2003. www.elmhurst.org/econdev/panorama/Visions% 20Piece%20newest%20-%20Version%203.pdf

Civic Economics. The Andersonville Study of Retail Economics. Chicago, Ill. 2004. www.andersonvillestudy.com Resources and Appendices 91

State of Maryland, Governor’s Office of Smart Robinson and Cole, LLP. Best Practices to Growth. Driving Urban Environments: Smart Encourage Infill Development. Prepared for the Growth Parking Best Practices. Annapolis, Md. National Association of Realtors, 2002. http://www.smartgrowth.state.md.us/pdf/Final% www.realtor.org/SG3.nsf/files/infilldevelopment.p 20Parking%20Paper.pdf df/$FILE/infilldevelopment.pdf

Morris, Marya. “Smart Communities: Zoning for Shoup, Donald C. The High Cost of Free Parking. Transit-Oriented Development.” Campaign for APA’s Planners Press. Chicago, Ill. 2005. Sensible Growth, ideas@work, Vol. 2 No. 4, 2002. www.growingsensibly.org/cmapdfs/[email protected] Smith, Tony and Steve Friedman. “Market Analysis: A Zoning Necessity.” Zoning Practice 23, National Association of State Development iss. 2 (2006). Agencies, Upjohn Institute, and the Urban Center. Evaluating Business Development Incentives. Washington, D.C. 1999. Teska Associates, Inc. City of Marengo www.eda.gov/ImageCache/EDAPublic/docu- Comprehensive Plan. City of Marengo, Ill. 2004. ments/pdfdocs/1g3_5febdi_5freport_2epdf/v1/1g www.cityofmarengo.com/compplan.html 3_5febdi_5freport.pdf

Urban Land Institute. Ten Principles for The National Trust Main Street Center. Reinventing America’s Suburban Business Districts. www.mainstreet.org Washington, D.C. 2002.

Village of Oak Park, Ill. Van Hemert, James. “The Development Review www.oak-park.us/Development_Services/ Process: A Means to a Noble and Greater End.” Retail_Rehab_Grants.html Zoning Practice 22, iss. 1 (2005).

Riverside County Economic Development Agency, Calif. Fast Track Permit Processing. www.rivcoeda.org/Default.aspx?tabid=469