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Mission Purpose Business Resources Commercial Economic Development Pandemic Recovery Plan Mission To provide resources to businesses, development communities, and residents with the purposes of helping the local economy open up safely and recover from the Pandemic. Purpose Schaumburg’s economy has been significantly impacted by the Pandemic and Governor Pritzker’s Executive Order 2020-10 on March 20 th regarding Stay at Home; Social Distancing Requirements; and Essential Businesses and Operations. The Economic Development Pandemic Recovery Plan will serve as a guiding document for an economic development strategy that will support existing businesses to cope and survive the Pandemic, assist residents who have lost their jobs, attract new businesses, and enhance the economic vitality of the community. Business Resources A variety of programs and resources have been implemented to assist businesses during the Pandemic. The Federal Government offered the Economic Injury Disaster Loans , Paycheck Protection Program , and other resources through the CARES Act. The State of Illinois rolled out the Illinois Small Business Emergency Loan Fund , Hospitality Emergency Grant Program and the State Treasurer’s Small Business COVID-19 Relief Program . At a local level, Cook County pushed out the Community Recovery Initiative . The Village of Schaumburg approved a new Small Business Forgivable Loan Program and is looking to expand this opportunity to help businesses cope and survive. Next Level Northwest is also available for eligible businesses to access free coaching and mentoring as businesses adapt to the changing environment. Some of the other business resources and grant programs available are Business for All , Local Initiatives Support Corporation , and Reopen Main Street . Village staff will continue to monitor available programs to support our businesses and opportunities from the Economic Development Administration , U.S. Small Business Administration , and others. Commercial Sector Schaumburg’s 30 hotels, 200 restaurants and 10.5 million square feet of retail have been forced to shut down or modify their operations to curbside or delivery options. Schaumburg’s retail sector has typically been the healthiest sector, as well as a key priority due to over half of the village’s services being funded directly by sales taxes. Although the “retail apocalypse” concept has affected Schaumburg, the community has historically enjoyed a relatively low vacancy rate. The commercial vacancy rate is at 7.4%. Some of the larger retailers that have closed over the past few years include 1 Economic Development Pandemic Recovery Plan Carson’s, Carson’s Furniture, Toys R Us, Babies R Us, REI, Golf Smith, At Home, Macy’s Furniture and Art Van Furniture. Some of these vacancies have since been filled, with other promising prospects for the remaining vacancies possible. Commercial users space needs will continue to change due to the Pandemic and consumers altered behaviors. The International Council of Shopping Centers (ICSC) reports that April U.S. retail sales minus auto and gas dropped 9.3 percent year over year and 14.3 percent from March 2020, according to an advance estimate by the U.S. Census Bureau. Non-store sales, food-and-beverage-store sales and building supply/garden-store sales each grew year over year, but only non-store sales increased from March 2020 to April 2020. Sales at traditional and discount department stores, a subset of the general merchandise category, fell 47 percent year over year in April. Clothing stores fared worst among U.S. store categories, as sales fell 89.3 percent year over year and 78.8 percent from March. The following table from ICSC shows the dramatic impact of the Pandemic on the retail sector: Several strategies will be required to make consumers feel safe and secure to visit and frequent these establishments when they reopen and how to adapt post-Pandemic. Here are a few strategies that the Economic Development Department staff will focus on to help our key commercial businesses: 1. Village Promotion Schaumburg will need to build upon its reputation as a safe, clean and well-managed village and 2 Economic Development Pandemic Recovery Plan promote opportunities for further investment. The Village of Schaumburg has increased its promotions of local businesses via social media. Facebook posts highlighting small businesses that are open for curbside pick-up or restaurants offering carry out and delivery have been shared since mid-April. A restaurant map depicting open restaurants with links has been shared via Facebook and on the village’s website . Additional marketing with our partners like the Schaumburg Business Association , Meet Chicago Northwest and Schaumburg Township will help boost visibility. Some potential initiatives would include: • Promote Schaumburg as a safe place to live, work, shop and play • Work with hoteliers to highlight their safey efforts and affordability to encourage both corporate and leisure travel business • Develop Shop Schaumburg Campaign to promote and boost small business • Special Cracker Barrel and Progress Report edition highlighting all retailers, restaurants and hotels • ‘Dailly Sighting’ with the Mayor promoting different establishments • Work with businesses to showcase the steps they’ve taken to keep shoppers safe 2. Omni-Channel and Technology As consumers are making more purchases via the internet, commercial businesses will need a strong website and delivery system to engage their customers. Organizations like the Small Business Development Center , Schaumburg Business Association and others provide webinars and sessions to assist businesses with their website and marketing. Technology will continue to evolve for commercial businesses to entice shoppers. Another way Schaumburg can help businesses with their multi-channel approach to sales is allowing for easy pickup. Zoning regulations have already been modified to allow for curbside pickup such as Target and several restaurants. Additional business signage will be needed to make it even easier for shoppers to get their goods. Some potential strategies that the village could work with businesses on include: • Interactive directory of Schaumburg businesses • Working with our tech companies to help create apps for retailers and shoppers • Enhanced signage for businesses to allow for curbside pickup and modifying the Sign Code to permit more temporary signage 3. Adaptive Use of Space Unfortunately not all commercial businesses will reopen. Schaumburg will need to think long- term about how to work with property owners to best plan for future needs and preferences of shoppers and diners. A few things to consider include: • Modifying land uses within the commercial zoning districts to adapt to future consumer and market demands • Redesign and utilize large parking lots for easier pickup and future development • Plan for the store of the future with technology and layout 3 Economic Development Pandemic Recovery Plan • Assess opportunities for restaurants to expand into adjacent spaces to accommodate spacing and safety requirements 4. Safely Reopening to Customers It is important that businesses follow appropriate guidelines to reopen to the public to ensure employee and customer safety. By following the proper health protocols from CDC , OSHA , IDPH and others, it will provide consumers with confidence of coming back to help revitalize the economy. A few things to consider include: • Continue to work with our restaurants to address protocols for serving customers including contactless payments, single use condiments, disposable menus, table spacing, outdoor dining and other sanitization actions as highlighted by the Illinois Restaurant Association • Share reopening best practices for commercial businesses by ICSC and address technical systems and facilities to accommodate modified occupancies for shoppers • Promote designated hours for seniors and at-risk populations to enter stores • Plan for the hotel reopening in phases and changes required to restore the hotel and convention industry as laid out by Streetsense and other hospitality resources Office Sector The office sector has been one of the biggest challenges for the Village of Schaumburg, as well as the entire Chicago region, before the Pandemic. There is currently around 3 million square feet of available space on the market, which represents a vacancy rate of 22% for the total 13.4 million square feet of office space. Schaumburg’s office sector has been significantly impacted by the Pandemic and inability of ‘non-essential business’ to operate. Owners, lenders, property managers, brokers, businesses, employees and the Village of Schaumburg will all need to work together to help reopen safely. With a vacancy rate of over 22%, there is a risk that additional space will become available and make the operation of these office buildings even more challenging. Here are a few strategies that the Economic Development Department staff will focus on to help our key office properties: 1. Office Promotion The Village of Schaumburg has a variety of office buildings in various classes and styles from one story condo units to high rise offices. The diversity of office can be a positive as businesses rethink their floor plans and workforce needs post Pandemic. A cooperative marketing approach is required to strategically think how to keep businesses operational and attract new office tenants. Some potential initiatives would include: • Advertising of safe office spaces with social distance protocols • Highlighting convenience
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