in the new mexico tradition - new mexico mainstreetnmmainstreet.org/pdfs/econ impact nm mainstreet...
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In the New Mexico Tradition The Impacts of MainStreet – 1986-2013
New Mexico Main Street Communities
Currently Active Previously Active
Albuquerque - Barelas Las Cruces Albuquerque - United South Broadway Hobbs
Albuquerque - DAT Las Vegas Aztec Los Ranchos de Albuquerque
Albuquerque - Nob Hill Los Alamos Town of Bernalillo Ruidoso
Artesia Lovington Chama Salt Mission Belen Portales Cuba Santa Rosa
Carlsbad Raton Espanola Socorro
Clovis Roswell
Clayton Silver City
Corrales South Valley (Bernalillo County)
Deming Taos
Farmington Truth or Consequences Gallup Tucumcari Grants Zuni
Harding County
Survey of Current Main Street Executive Directors
New Mexico Main Street Annual Reports 1986 – 2013
Local Main Street programs’ quarterly reports to New Mexico Main Street
Community Economic Assessments prepared by University of New Mexico Bureau of Business and Economic Research
Data from US Department of Commerce and US Department of Labor
Economic Multipliers from IMPLAN
Additional interviews and assorted publications
Sources of Report Data
Caveats on the Data Data from 1985 through 1995 was available on
aggregated basis only
Data on a town by town basis not available on all years between 1995 and 2000
Some data categories have been added in recent years
Local numbers provided by executive directors of active Main Street programs (semi-annually, quarterly)
Very robust, quarterly data since 2003
The Big Numbers
$272,376,367
$283,733,345
$415,031,993
$66,327,451
$0
$200,000,000
$400,000,000
$600,000,000
$800,000,000
$1,000,000,000
$1 Billion Invested in NM MainStreet Districts
Private Rehab New Construction Public Projects Public/Private Projects
0
2000
4000
6000
8000
10000
12000 19
86
1987
19
88
1989
19
90
1991
19
92
1993
19
94
1995
19
96
1997
19
98
1999
20
00
2001
20
02
2003
20
04
2005
20
06
2007
20
08
2009
20
10
2011
20
12
2013
Cumulative Number of Net New Jobs in New Mexico MainStreet Districts
0
500
1000
1500
2000
2500
3000
3500 19
86
1987
19
88
1989
19
90
1991
19
92
1993
19
94
1995
19
96
1997
19
98
1999
20
00
2001
20
02
2003
20
04
2005
20
06
2007
20
08
2009
20
10
2011
20
12
Cumulative Net New Businesses in New Mexico MainStreet Districts
0
500
1000
1500
2000
2500
3000
3500
4000 19
86
1987
19
88
1989
19
90
1991
19
92
1993
19
94
1995
19
96
1997
19
98
1999
20
00
2001
20
02
2003
20
04
2005
20
06
2007
20
08
2009
20
10
2011
20
12
Cumulative Number of New Mexico MainStreet Building Rehabs
$0
$100,000,000
$200,000,000
$300,000,000
$400,000,000
$500,000,000
$600,000,000 19
86
1987
19
88
1989
19
90
1991
19
92
1993
19
94
1995
19
96
1997
19
98
1999
20
00
2001
20
02
2003
20
04
2005
20
06
2007
20
08
2009
20
10
2011
20
12
Cumulative Investment in New Mexico MainStreet Buildings
Rehabilitation New Construction
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
$1,000,000
1986
19
87
1988
19
89
1990
19
91
1992
19
93
1994
19
95
1996
19
97
1998
19
99
2000
20
01
2002
20
03
2004
20
05
2006
20
07
2008
20
09
2010
20
11
2012
New Mexico MainStreet Program Budget
Behind the Numbers
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2007 2008 2009 2010 2011
Ratio of Business Openings to Business Closings
New Mexico Main Street Districts United States
-400
-200
0
200
400
600
800
1000
1200
Year to Year Change in Jobs New Mexico Statewide vs MainStreet Programs
Change in Jobs NM (x100) Net New Jobs NM MainStreet Districts
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
$2,000 19
86
1987
19
88
1989
19
90
1991
19
92
1993
19
94
1995
19
96
1997
19
98
1999
20
00
2001
20
02
2003
20
04
2005
20
06
2007
20
08
2009
20
10
2011
20
12
State Budget to Net New Jobs in New Mexico MainStreet Districts
Average over Life of Program $1,048.68
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
$10,000 19
86
1987
19
88
1989
19
90
1991
19
92
1993
19
94
1995
19
96
1997
19
98
1999
20
00
2001
20
02
2003
20
04
2005
20
06
2007
20
08
2009
20
10
2011
20
12
State Budget to Net New Businesses in New Mexico MainStreet Districts
Average over Life of Program $3,364.10
0
50
100
150
200
250 19
86
1987
19
88
1989
19
90
1991
19
92
1993
19
94
1995
19
96
1997
19
98
1999
20
00
2001
20
02
2003
20
04
2005
20
06
2007
20
08
2009
20
10
2011
20
12
Private Investment to NMMS Program Budget
Average over Life of Program 44.5 to 1
Real Estate
$0
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
$300,000,000
1986
19
87
1988
19
89
1990
19
91
1992
19
93
1994
19
95
1996
19
97
1998
19
99
2000
20
01
2002
20
03
2004
20
05
2006
20
07
2008
20
09
2010
20
11
2012
20
13
Cumulative Private Investment – Rehabilitation NM MainStreet Districts
0
100
200
300
400
500
600
700 19
86
1987
19
88
1989
19
90
1991
19
92
1993
19
94
1995
19
96
1997
19
98
1999
20
00
2001
20
02
2003
20
04
2005
20
06
2007
20
08
2009
20
10
2011
20
12
Jobs from MainStreet District Building Rehabilitations
Direct Jobs Indirect/Induced Jobs
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012
Income from Building Rehabilitation Projects
Direct Income Indirect/Induced Income
0
500
1000
1500
2000
2500
Building Construction Jobs in NM MainStreet Districts
Average 430 jobs/year For the life of the program
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012
Building Construction Income – NM MainStreet Districts
Average $11,493,987/year For the life of the program
0%
5%
10%
15%
20%
25%
30%
35%
Building Purchase Prices in NM MainStreet Districts 2008-2012
~150 Buildings Purchased over last 5 years
Is MainStreet a Job Creating Program?
If “Job Creating” means subsidizing employers to hire new workers, then no.
If “Job Creating” means helping to create an economic environment where
businesses hire new workers themselves, than absolutely YES.
0
1
2
3
4
5
6
7
8
9
10 Average Jobs/Business – NM MainStreet Districts
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
50.0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Jobs/MainStreet Community
Capital Outlay Projects
Year Towns State Expenditure
2000 7
2005 4 $93,000
2006 6 $1,142,500
2007 10 $2,000,000
2008 13 $1,500,000
2009 9 $1,000,000
2010 10 $1,000,000
2012 11 $1,000,000
2013 4 $500,000
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
What Happened as a Result of Capital Outlay Fund?
Increased rents Buildings sold More pedestrian traffic Business expansions Reduced vacancy More event attendance Individual building improvements New businesses opening
What the data showed
New Mexico MainStreet Today
$2-$6
$6-$10
$10-14
0% 10% 20% 30% 40% 50%
Rent Levels in NM MainStreet Districts ($/sq. ft./year)
0% 5% 10% 15% 20% 25% 30%
Liquor stores, Wine shop, Office supply, Stationery stores
Drug stores and Pharmacies Movie theaters Grocery stores
Hardware stores, Paint stores Camera, Computer, Electronics
Sporting goods, Hobby, Game stores Shoe stores
Bars, Taverns Household goods
Jewelry stores Clothing stores
Financial Institutions Bookstores, Gift stores, Art dealers, Music …
Personal Services firms Cafes, Restaurants, Coffee shops
Professional Services firms
Who Does Business on NM MainStreet?
0%
5%
10%
15%
20%
25%
30%
Who is coming in? Who is going out?
0
2
4
6
8
10
12
14
16
Opened Closed
Restaurants/Cafes/Bars Opened vs Closed
25%
17%
19%
19%
15%
5% Who are the Customers?
Downtown Workers Nearby Residents Other City Residents Market Area Residents Tourists Other
19%
12%
69%
Tourists as Percent of MainStreet Customers
30% or More 11% - 29% 10% or Less
Downtown Housing Opportunity?
• 50% of NM MainStreet communities report having downtown housing
• Average rents (excluding Albuquerque DAT) are ~$620/month
• That means downtown residential rents are 1.5 to 2 times storefront rents
• Big Impacts of Downtown Residents
Benefit to a New Mexico downtown economy from an upper floor housing unit rented to a couple for between $400 and $800/month
Food at home $1,472 - $2,405
Food & drink out $622 - $1,119
Alcohol and tobacco $301 - $499
Rent $4,800 - $9,600
Other housing costs $2,406 - $3,867
Furniture, equipment & electronics $266 - $444
Apparel & apparel services $361 - $581
Vehicular and transportation related $2,304 - $ 3,198
Health care related $1,048 - $1,713
Entertainment $801 - $1,369
Personal Services $208 - $347
Other $332 - $540
Total Annual Economic Impact of an Upper Floor Apartment in a New Mexico Downtown
$15,321 - $26,482
Towns Getting a Closer Look
Prepared for the National Main Street Center and New Mexico Main Street
PlaceEconomics Washington, DC December, 2013