session topics 10, 2020 goal: obtain general agreement on … · 2020. 8. 7. · • midori sushi...

WORK SESSION TOPICS AUGUST 10, 2020

1. Discussion on 2019 goal report regarding downtown and discuss next steps. (45 minutes)

Goal: Obtain general agreement on which policy/programs to focus effort on.

Attachments: 2019 Downtown Report prepared by Downtown Development

Director Michelle Sponseller Downtown report memo outlining potential discussion items

Discussion Items: 1. Any questions on the 2019 report? 2. Willing to consider removing prohibitions on first floor residential

housing along alleyways? 3. Willing to consider use of Town Center as public space instead of

current use as parking lot? 4. Interested in expanding the fire protection grant program (one has

been awarded and funding exists for two more)? 5. Interested in designating all or a portion of downtown as an

Obsolete Property Rehabilitation Act (OPRA) district to attract mixed-use development (Note: This would allow properties to apply for an OPRA certificate which freezes the property taxes for a set number of years not to exceed twelve. The City Commission would act on each application received based on its merits.)

6. Interested in amending the Redevelopment Liquor License Policy to lower required investment from the current $500,000 for non-restaurant uses?

TO: Nancy Ridley, City Manager FROM: Michelle Sponseller, Downtown Development Director CC: William Mrdeza, Director of Community Services and Economic Development DATE: January 9, 2020 SUBJECT: Downtown 10+10+10 Review One of the 2019 goals is to complete a review of downtown using a method called a 10+10+10 review which shows the critical mass of specialty retailers, activity based businesses, food establishments and businesses open after 6:00pm and then identify strategies to make progress toward the desired metric. BACKGROUND Roger Brooks has assisted nearly 2,000 communities with their branding, tourism, downtown development and marketing efforts during his career, which spans more than 35 years. Founder of award-winning Roger Brooks International, Inc., and the Destination Development Association, Roger is author of the books "Your Town: A Destination—The 25 Immutable Rules of Successful Tourism," and the upcoming book "The 20 Ingredients of an Outstanding Downtown," both of which highlight lessons learned, boots on the ground experience, and years of extensive research. Destination Development Assoc. developed a list of criteria that included nearly 80 items including store hours, parking limits, business mix, wayfinding signage and marketing programs. They then surveyed 400 successful downtowns and downtown districts (big and small) throughout the U.S., Canada, and Western Europe. Using the 80-item list they found the 20 most common indicators that led to their success. As the 10+10+10 benchmark is #3 on the list of 20 indicators of a successful downtown, staff believes having the complete list to see how the results of the 10+10+10 benchmark is part of the bigger overall picture of our downtown business climate and where we, along with the businesses and property owners, should focus our attention, would be helpful. The full list of 20 indicators appears in the attachment to this memo. At the September 9, 2019 work session consensus among city commissioners was to amend the 10+10+10 boundary so it ends north at Main and Lincoln and to add in non-retail activity-based businesses such as yoga and fitness studios and salons. The 10+10+10 review has been updated with these changes on the following pages and related map. Additionally, staff has provided next steps and recommendations for the City Commission to consider. WHAT IS THE 10+10+10 REVIEW? The concept of 10+10+10 is based on grouping similar destination-type businesses together to create the "critical mass" in a pedestrian-friendly setting, specifically in three lineal blocks. These businesses are ones visitors will go out of their way to drive 30+ miles to experience. This will attract visitors as well as locals, and make it worth their while to stop and shop in our downtown. People are drawn to the critical mass - the opportunity to have multiple choices, multiple experiences, all in a convenient and attractive setting.

Memorandum Mt. Plea!'a-""t [ meet here]

10+10+10 CATEGORIES

1. 10 Food Establishments • Examples: soda fountain, coffee shop, bistro, café, sit-down restaurant, wine store,

deli, confectionary. 2. 10 Destination Retail Stores or Activity-Based Businesses

• Examples: galleries, antiques, collectibles, books, clothing, home accents, outfitters, brand-specific retail, garden specialties, kitchen stores, salons, fitness-based businesses, etc.

3. 10 Places Open After 6:00pm • Entertainment, theatre (movies and performing arts), bars and bistros, specialty

shops, activity-based businesses, salons, dining, open air markets, etc. For this review, retail is defined as “a business in which a majority of the floor space is dedicated to the display of products available for sale on the premises” and restaurant, as compared to bar or tavern, is defined as “a place where food is cooked, prepared, provided, or served for human consumption where sales of such food constitutes greater than 50% of gross receipts during any 90-day period.” The downtown TIFA district is approximately 20 blocks, although not evenly spaced or sized as you can see by the attached map. 10+10+10 RESULTS FOR MT. PLEASANT’S DOWNTOWN Food Establishments 13 food establishments total 9 food establishments open after 6:00pm*

• Brass Café* • C Prime* • Dog Central* • Downtown Soda Shoppe • Jimmy John’s* • Max and Emily’s Eatery* • Midori Sushi Restaurant*

• Mountain Town Station* • Pisanello’s Pizza* • Pleasant City Coffee • Ponder Coffee • Stan’s Restaurant • Vin Trofeo’s*

Specialty Retailers and Activity Businesses 29 total specialty retailers and/or activity businesses 20 specialty retailers and/or activity businesses open after 6:00pm*

• Art Reach of Mid Michigan • Blue in the Face* • Consano* • Curtiss Hardware • Downstairs Salon and

Boutique* • Experience Hair Design* • Fusion Fitness* • Gray’s Furniture and

Boutique • Green Tree Grocery Co-op*

• Hall of Heroes • Headliners Salon* • Le Fleur Boutique • Level 7 Salon* • Main Frame Gallery • MJ Murphy Beauty College • Motorless Motion* • Norm’s Flowers / Chasing Fireflies • Off-Broadway Studio of Performing

Arts* • Painted Turtle*


• Pure Vitality Juice and Spa* • Red Bloom Yoga* • Salon 110* • Salon Blu Day Spa and Boutique* • Scott Harris Salon* • Total Eclipse Salon*

• Trillium • Upper Cut Salon* • Water Works Salon, Spa and

Academy* • Yoga on Main*

Businesses Open After 6:00pm Total Businesses Open After 6:00pm = 37 Bars = 6 Restaurants = 9 Specialty Retailers and/or Activity Businesses = 20 Other = 2*

• Bird Bar and Grill • Blackstone • Blue Gator • Blue in the Face • Brass Café • Broadway Theatre* • Consano • C Prime • Dog Central • Downstairs Salon and

Boutique • Encore Nightclub • Experience Hair Design • Fusion Fitness • Green Tree Grocery Co-op • Headliners Salon • Ignite Donuts* • Jimmy John’s • Level 7 Salon • Marty’s Bar • Max and Emily’s Eatery

• Midori Sushi Restaurant • Motorless Motion • Mountain Town Station • Off-Broadway Studio of

Performing Arts • Painted Turtle • Pisanello’s Pizza • Pure Vitality Juice and Spa • Red Bloom Yoga • Rubble’s Bar • Salon 110 • Salon Blu Day Spa and

Boutique • Scott Harris Salon • Total Eclipse Salon • Upper Cut Salon • Vin Trofeo’s • Water Works Salon, Spa

and Academy • Yoga on Main

10+10+10 Review Results Although we have a good foundation in each of the 10+10+10 categories in the core of downtown, near the intersection of Main and Broadway, there is room to build and grow to reach a critical mass of specialty retailers and activity-based businesses and businesses open after 6:00pm. Additionally, the results also show that the farther away from the intersection of Main and Broadway the number of 10+10+10 businesses drop off in even greater numbers as seen on the map. Emerging Trends In recent years an emerging trend has appeared in downtowns, that of a business-within-a business. These small auxiliary business provide a diversified retail product base, thus drawing in new customers to


provide exposure to the to the core business. This also provides a start-up location for retail that can otherwise be unobtainable through traditional financing methods and risk to the business owners. Examples are: Salon Blu and Boutique, Gray’s Furniture and Boutique, Downstairs Salon and Boutique, and Norm’s Flower Petal adding children’s clothing via Chasing Fireflies in their location. Additionally, we are home to a few small businesses who have expanded their initial offerings in creative methods, staying on top of or at the front of new trends. Examples of these are:

• Water Works Salon, Spa and Academy – developed, manufactures and sells a line of hair care products under the Water Works label.

• Ponder Coffee – roasts and packages coffee for both retail and wholesale.

• Art Reach of Mid Michigan – has expanded into make and take art classes.

Attached is the map of the 10+10+10 data which visually represents the information proved above in this memo. Next Steps / Recommendations

• Develop and/or grow incentives, resources and relationships to build on the current foundation of businesses by increasing small locally-owned retail and activity-based businesses and restaurants to position downtown as a regional destination for both daytime and evening business pursuits. Suggested additions to the city’s current economic development offerings:

o Rent subsidy program o TIFA business incentives

• Conduct annual review of 10+10+10 metrics to track and make necessary changes to economic development offerings to assist the business community as promptly as possible.


ADDENDUM--20 INDICATORS TO A SUCCESSFUL DOWNTOWN First, it is key to understand that not all of the list of 20 indicators is to be accomplished by city staff, some of the list is directed at property owners, while other indicators are directed at retailers. However, even if staff is not at the forefront of bringing about change with regards to the indicator, many times we are in a position to encourage or eliminate obstacles in the path of success. Although few downtowns will have all 20 ingredients, those with 17 or more got an “A” from the research and were clearly successful destinations. Many are 15 or 16 and earned a “B,” and those with 13 or 14 earning a “C.” After working with nearly a thousand communities and surveying hundreds of others, Destination Development Assoc. found that more than 600 of those did not meet the qualifications to earn a “C,” and were not nearly as successful. Additional criteria to determine success was then included: - The downtowns or districts had to have at least a 97% or higher occupancy rate in the core district or area being surveyed. - The lease rates had to be “market rate” or higher compared to similar cities and towns in the state, province, or region. - The turnover had to be less than 5% per year.

1. Begin with a Plan • Successful downtowns start with a plan. Bring together partners and stakeholders, and

work together so that everyone’s efforts are towards common goals and a defined direction.

• Every downtown has different features, so each community needs its own special branding, development & marketing action plan.

• Identify what sets our community apart from everyone else, that will be our strongest sales tool.

• Action plan needs to include our brand and brand promise, product development plan, and marketing plan.

• Action plan needs to be a detailed “to-do list.”

2. Strong Brand and Retail Focus • Outstanding destinations have a strong brand and a successful, vibrant retail core. • Brands are perceptions and are earned whether they are good or bad and are built by

marketing and by extension, word of mouth. • Branding is the art of differentiation - jettison the generic and focus on what we have to

offer that is different.

3. 10+10+10 = Orchestrated Recruitment of “Critical Mass” or “Clustering” • Successful downtowns need to have a critical mass of like businesses. This would include

a minimum in three lineal blocks: o Ten places that sell food: soda fountain, coffee shop, bistro, café, sit-down

restaurant, wine store, deli, confectionery. o Ten destination retail shops: galleries, antiques (not second hand stores),

collectibles, books, clothing, home accents, outfitters, brand-specific businesses, garden specialties, kitchen stores, cigars, etc.

o Ten places open after 6:00 pm: entertainment, theater (movies, performing arts), bars & bistros, specialty shops, dining, open air markets, etc.

4. “Anchor Tenants”

• An anchor tenant is a downtowns primary lure – what makes our downtown worth a special trip. Like every mall, every town relies on anchor businesses to attract customers,


and all the other businesses benefit. To be a successful downtown, you must have at least one or two anchor businesses, ones that people would drive an hour – or more – to visit. Always promote your anchor tenants as your primary enticements.

• Create a “best of” brochure for your community that highlights your very best attractions and businesses.

5. Lease Agreements with Defined Operating Hours and Days

• 70% of all consumer spending (both locals and visitors) takes place after 6:00 pm. Are stores open?

• Conferences and conventions are booked around things to do after the meetings adjourn that day.

• The majority of the businesses must be open after 6:00, not just a few. If half the stores in the mall closed at 6:00 rather than 9:00, would you go to the mall after 6:00?

• Start by staying open on Friday and Saturdays until 7:00 pm the first year, then add Thursday, then Wednesday.

• Bring nighttime music and entertainment downtown to provide incentives for people to go.

6. People Living and/or Staying Downtown

• The reinvention of downtowns also includes residential upper-story development: condos, loft apartments, downtown hotels and a business mix to support them.

• Residential drives retail. What comes first? A downtown that people will want to live in. This includes businesses open after 6:00, entertainment, all in a pedestrian-friendly, attractive downtown setting – a “Third Place:” the place people want to live and hang out.

• Hotel development downtown is another great mix that provides “new” customers nearly every day. Hotel development helps restaurants and destination retail shops flourish.

7. Pioneering Property Owners

• Every downtown revitalization effort requires property owners with patient money, the will to “make a difference” and the ability to think long-term rather than a fast return.

• Reduce rental rates where possible or until you develop the critical mass so that key merchants can grow and new ones start until you become a destination downtown.

• Incentives need to happen from the property owners in terms of rent abatements, reduced lease rates, and a focus on the tenant mix: the critical mass.

• It takes one-third of the property owners, working together, to “reinvent” downtown in terms of business mix, curb appeal, upper story living units, etc.

• Every downtown effort requires tireless pioneers and those who will champion the cause. Enthusiasm is contagious and is an essential ingredient for every revitalization effort.

8. Start Small – Make a Destination Block

• Begin revitalization in a very small area – concentrate your efforts so they make a big impact fast – just one or two blocks. Where to start? Where the property owners are most willing to help with the efforts. Concentrate the focus of creating critical mass in those blocks. Work with property owners on lease agreements, choice of tenants, facades, beautification.

• Timeline: Three years. The rest of downtown will see the results and follow along – driven by the market.

9. Solving the Perceived Parking Dilemma

• Eliminate two-hour parking in a pedestrian-friendly downtown as it restricts spending.


• Identify where the all-day or extended hour parking is located. • Parking doesn’t have to be free, but needs to be reasonable. • Consider incentive parking programs: - Spend $20 or more and get the parking free -

Have businesses “sponsor” free parking days or evenings - Reduce the parking fees the longer they park downtown

• Angle-in parking generates increased sales over parallel parking. People believe angle parking is easier than parallel and shoppers will be more inclined to shops in these areas.

10. Public Washrooms

• Restrooms should be in the heart of downtowns. Once visitors get out of the car, there is a four-times greater chance of getting them to spend money.

• Make sure they are open 24-hours a day.

11. Development of Gathering Places • Make places to gather. Common ingredients include:

o Permanent home for an outdoor open market with permanent structures. Open air (farmers) markets should be placed in the heart of downtown district.

o Interactive water features, multiple stages, pocket parks or small venue plazas, amphitheaters, trees and raised planters, public art, night lighting and walking areas and music.

12. Creation of Good First Impressions: Community Gateways

• Place gateway signs where we can make the first, best impression. • Signage at city limits should be directional signage to key locations, including downtown.

For instance, “Downtown Mt. Pleasant – 1 mile.” • Place gateways at your downtown or district entrances. These can span the street, include

decorative crosswalks, pole banners and other identifiers creating a “sense of arrival”.

13. Wayfinding Signage • Wayfinding should be decorative to fit the brand. • It should include both vehicular wayfinding as well as pedestrian wayfinding signage. • Use kiosks or maps to showcase district boundaries and key amenities and/or attractions.

14. Make a Good First Impression: Downtown Gateways

• Downtown gateways create a “sense of place” and arrival. They can also promote a sense of group pride among the merchants downtown, helping to foster group cooperation with beautification and marketing.

• They should always be attractive and reflect the ambiance of the town, promoting a feeling that you have arrived at a special destination.

• Decorative crosswalks are an excellent way to separate the district and increase pedestrian safety at the same time

15. Retail Signage Rules & Regulations

• Develop perpendicular or “blade signs” in core downtown districts. • Use of other types of retail signage such as the use of sandwich boards and eye catching

window displays. • Businesses need to promote, on signage, their key products or services more than the

name of the business. • Get rid of the “Closed” signs and instead use “We’ll be open” signs.


• Never use “restrooms are for customers only” or “no public restrooms” signage. Instead, tell customers where they can find restrooms.

16. Encourage Sidewalk Cafes and Intimate Surroundings

• The biggest trend in successful downtowns is the creation of intimate surroundings: o Narrower streets o Wider sidewalks o Street trees every 30’ to 35’ o Buffers between sidewalks and traffic or parking o Decorative crosswalks o Decorative night-lighting o Architectural lighting o Other common ingredients include: water features, sidewalk cafes and exterior

dining

17. Retail Beautification • The most important element of curb appeal is the softening of the transition of building

facades and the sidewalk, think of planter boxes and potted plants. • Besides word of mouth, shoppers typically have only curb appeal to help determine

whether or not a shop is worth visiting. Curb appeal can account for 70% of new visitor sales at restaurants, retail shops, and hotels and lodging.

• This is not outdoor merchandising. Folding tables, boxes of goods, shopping carts piled with goods, are not good examples of curb appeal and should be discouraged.

18. Provide Activities and Entertainment • Open air markets should operate for at least three days a week, during at least a 24-week

season (depending on location). • Invite street musicians and street artisans on weekends. • Recruit outside events into plaza areas.

19. Give Downtown a Name

• This will make downtown a destination, as opposed to just a place. It can also get downtown on highway signage. Popular downtown district names include:

Pearl District in Portland, Oregon, Bricktown in Oklahoma City, Oklahoma, Gastown in Vancouver, British Columbia, Pioneer Square in Seattle, Washington, Gaslamp Quarter in San Diego, California, Baker Street in Nelson, British Columbia, The Rail District in Snoqualmie, Washington, Bourbon Street, The French Quarter in New Orleans, Louisiana

20. Experiential Marketing - Focus on Activities, Not Buildings

• Sell feelings rather than buildings or the physical environment. • Visitors are far more interested in the things to do than in the location. • Develop an activities guide that promotes what there is to do in your community.


Information Accuracy Disclaimer - The materials and information contained on or obtained from the city of MtPleasant GIS maps, are distributed and transmitted “as is” without warranties of any kind, either expressed or implied, including without limitations,warranties of title or implied warranties of merchantability or fitness for a particular purpose. Information on these GIS maps is provided without any representation of any kind as to accuracy and should be verified by the user. The City of MtPleasant is notresponsible for any special, indirect, incidental or consequential damages that may arise from the use of, or the inability to use, the GIS maps whether they are provided by the city, or a third party

Parcels

Food (13)

Food Establishments Open After 6pm (9)

Bars/Nightclubs Open After 6pm (6)

Specialty Retail/Activity Based Buisnesses (29)

Specialty Retail Open After 6pm (20)

Other Open After 6pm (2)

TIFA Boundary

Legend

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TO: Nancy Ridley, City Manager CC: William R. Mrdeza, Director of Community Services and Economic Development FROM: Michelle Sponseller, Downtown Development Director DATE: April 22, 2020 SUBJECT: 10+10+10 Review – 2019 Goal Update On September 9, 2019, the City Commission received data on the downtown’s 10+10+10 review. The concept of 10+10+10 posits that groupings of similar destination-type businesses in a pedestrian-friendly setting, specifically restaurants, retail and activity-based businesses, in three lineal blocks, create a "critical mass that visitors will travel 30+ miles to experience. People are drawn to the critical mass - the opportunity to have multiple choices, multiple experiences, all in a convenient and attractive setting. Additionally, during the work session, consensus among City Commissioners was to amend the area of analysis to exclude the portion of the CBD-TIFA north of Main and Lincoln and to expand the data to include non-retail activity-based businesses such as yoga and fitness studios and salons. 10+10+10 Findings

1. There is a good foundation in each of the 10+10+10 categories in the core of downtown, particularly near the intersection of Main and Broadway.

2. There is opportunity to reach a critical mass of specialty retailers and activity-based businesses and businesses open after 6:00 p.m.

3. As distance from the intersection of Main and Broadway increases the number of 10+10+10 businesses decrease in even greater numbers, as seen on the map.

Based on the above findings the following recommendations address potential actions the City could take to strengthen the 10+10+10 metrics. These actions would be directed at both property owners and commercial tenants. The direct and indirect cost of these actions varies. Some, such as loosening the prohibition on first-floor residential uses, would have little or no direct cost to the City. Others, such as marketing efforts, would require allocation of funds. In order to increase the critical mass of destination-based businesses such as restaurants, retail and those that are activity-based, a three-pronged approach is recommended.

1. Provide flexibility to the physical space by permitting more flexible use of surplus space on the street level of buildings while maintaining an active commercial frontage.

a. Retail tenants today need less space to hold stock than in the past;

b. Live/work spaces can create a circumstance where the upstairs covers the mortgage costs and gives the first floor the ability to house entrepreneurial start-ups at a lower price point and assist with growing our locally-owned business community.

c. More people living downtown is good for existing and future commercial users.

d. Buildings in the downtown have been adapted throughout the City’s history to new uses and forms;


2. Change real or perceived barriers to starting a destination-based business in downtown;

a. Cost of fire protection systems;

b. Limited city development incentives;

c. High threshold of redevelopment liquor license investment for non-restaurant uses.

3. Strengthen the existing destination-based business community.

a. Marketing for the whole downtown district.

DISCUSSION ITEMS

1. Is the City Commission willing to consider removing prohibitions on first-floor residential housing along alleyways in downtown?

• Minimum 50’ commercial depth to maintain the commercial frontage.

• Maintain corridor to alleyway for deliveries, waste management and access.

2. Is the City Commission willing to consider the alternative use of Town Center for public space versus its current use as a parking lot?

• Both the downtown study conducted by Town Planning & Urban Design Collaborative in 2016 and the draft Master Plan show concepts for a civic space in this location.

3. Is the City Commission interested in continuing or expanding the fire protection grant program?

4. Is the City Commission interested in continuing to market the downtown district beyond the 2020-2021 TIFA plan?

5. Is the City Commission interested in proactively creating an OPRA district for all of downtown to attract mixed-use redevelopment?

6. Is the City Commission willing to lower the investment criteria for redevelopment liquor licenses for “non-restaurant uses” such as music venues and/or arts center?

• Current level of investment required is $500,000.

REQUESTED ACTION The City Commission to provide direction on the above program or policy changes desired to increase the 10+10+10 results.


session topics 10, 2020 goal: obtain general agreement on … · 2020. 8. 7. · • midori sushi...

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