Many business districts in Minneapolis are suffering from vacant commercial spaces. These vacancies make the street look like, as a friend of mine of said, “A bad tooth mouth.” And yet local residents feel somewhat helpless as time passes, litter gathers, showroom windows get dirtier, and interiors look dark and foreboding.
But what can be done? As I talked about in my piece, The Myth of Placemaking, the solution to revitalize business areas is not in bike lanes or street design but in curating an experience for visitors. That means thinking hard about what businesses could create a synergy to make an attractive place to visit and then recruiting them.
How do you build an attractive commercial area? Here is a “Do It Yourself” plan for neighborhood organizations that want to play an active role in business recruiting and retention (and this plan is modeled on a very successful program employed by Holland, Michigan.)
First, a neighborhood organization, preferably with paid staff, is very much desired. A volunteer organization can do this, but only if volunteers are both reliable and competent.
Second, the organization must have a written plan, and the plan must explain to real estate brokers and property owners how the process will work and what each is expected to do.
Third, property owners must agree to cooperate fully with the plan. This means being willing to pay a commission to the broker and offer the prospective tenant incentives like tenant build-out allowances and free rent.
Fourth, brokers must be willing to make an annual contribution to the neighborhood association based on commissions earned.
Fifth, members of the association must be willing to act as “scouts,” – traveling to nearby towns to scout for prospects, and meeting with business owners to recruit them for the vacant spots in the district.
Sixth, the neighborhood organization, in cooperation with property owners, must prepare and produce collateral material association members can use in pitching possible recruits
The pitch: Association members look for businesses that have the right fit. Do they look successful? Are they the right size? Are they compatible with existing businesses? Will they draw customers who are likely to shop elsewhere in the district? The business should be no more than a 2-hour drive from vacant space, so the owner can visit and return the same day. Now, the association member describes the neighborhood in glowing terms, assures the prospect that residents will fully support the business, and that there is in place a joint marketing program designed to bring customers to the prospect’s door. The member then turns the prospect over to the broker, to close the deal.
Everyone wins. The property owner gets a new tenant. The neighborhood gets a new business. The broker earns a commission, The neighborhood organization gets a yearly contribution, which helps pay for expanded services in the neighborhood. A neighborhood resident gets her real estate license and begins recruiting businesses for the community. The businesses thrive in a friendly environment. City residents get to enjoy exploring new towns, meeting new folks, and selling the virtues of their community.)
Can this work? It’s a process that is similar to one invented by Holland Michigan, and another used in East Liberty, PA.
Picky but could you correct the graphic in the photo from DYI to DIY?
Done, good catch!