Illinois Institute for Rural Affairs 25 th Annual Rural Community and Economic Development Conference March 6, 2014
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1 KEEPING IT FRESH Illinois Institute for Rural Affairs 25 th Annual Rural Community and Economic Development Conference March 6, 2014
2 YOUR COMMUNITY What s happening? Vacancies Blight Code violations Vibrant downtown New business openings Retail traffic
3 What Is Business Recruitment? Setting the stage to fully SELL your community. 1. Understand your existing market conditions and potential. 2. Know your competition. 3. Capitalize on your assets. 4. Know your target market. 5. Overcome any barriers that you can address. 6. Be creative, but have a clear message. 7. Get your message out in the most professional and positive way. 8. Definitely utilize the web!
4 Who will do it??
5
6
7 APPROACHES TO BUSINESS RECRUITMENT Active Program Characteristics Do-Nothing Downtown Marketer Deal Maker Table Setter Targeted Program Are Types of Firms Targeted? No No No No Yes Downtown Organization does PR and advertising. Downtown Organization does prospect cultivation. No Yes Yes Yes Yes No No Yes Opportunistic Yes Who does the deal-making? Brokers & Landlords Brokers & Landlords Downtown org & Landlords Brokers & Landlords Brokers & Landlords Downtown Organization role in dealmaking. Downtown Organization has strong quality of life programs. None Referrer Deal-maker Match-maker Match-maker Maybe Maybe Maybe Definitely Probably Downtown Organization has strategy. No No No Often Implicit Some Source: N. David Milder, DANTH, Inc.
8 Does this resonate with you? Great intentions, but no solid organization. Great intentions, but lacking leadership. Great intentions, but no clear strategy. Too may organizations involved in overlapping efforts. Where do we start?
9 You may need a new approach! Because we are in a new reality!
10 JUST KEEP IT MANAGEABLE Acknowledge Your Capacity Add Value
11 Task #1 ASSIST EXISTING BUSINESSES Help your businesses be the best they can be. Happy, healthy, local! It s all about relationship building. Identify their needs. Bring in private and public partners. Help provide technical support, resources, connections, referrals.
12 ASSIST EXISTING BUSINESSES Develop your retention toolbox Financial incentives Financial planning Internet sales Inventory control Merchandising Marketing Customer service Employee hiring/retention Succession planning Conduct regular business visits
13 Task #2 CREATE an ASSISTANCE NETWORK Develop relationships with people to whom you can refer businesses for assistance Bankers Accountants State and regional workforce development, economic development and community development staff Realtors Suppliers Event planners
14 Task #3 KNOW YOUR MARKET Understand your existing market conditions and potential. Know your competition. Exploit your assets. Know your target market.
15 KNOW YOUR MARKET 15 Minute Drive-Time
16 KNOW YOUR MARKET
17 KNOW YOUR MARKET Comps Community Level Affiliation Area Size Population High Way Connection Relation with Main CitieComments Mukwonago village Waukesha County Total 8.11 sq mi (21.00 km2) Land 7.90 sq mi (20.46 km2) Water 0.21 sq mi (0.54 km2) 7,355 (2010 census) Interstate min to Milwaukee; 1 h 21 min to Madison Target Market Delafield city Waukesha County Total sq mi (28.65 km2) Land 9.41 sq mi (24.37 km2) Water 1.65 sq mi (4.27 km2) 7085 (2010 census) Interstate min to Milwaukee; 56 min to Madison Similar population/high way connection/relation to main cities/size DeForest village Dane County Total 7.49 sq mi (19.40 km2) Land 7.43 sq mi (19.24 km2) Water 0.06 sq mi (0.16 km2) 8936 (2010 census) Interstate min to Madison; 1 h 21 min to Milkwaukee Similar population/high way connection/relation to main cities; but larger size Vernon Town Waukesha County Total 32.7 sq mi (84.7 km2) Land 32.2 sq mi (83.5 km2) Water 0.5 sq mi (1.2 km2) 7,518 (2009) Interstate min to Milwaukee; 1 h 25 min to Madison Similar population/high way connection/relation to main cities; but much larger size Jefferson city Jefferson County Total 5.93 sq mi (15.36 km2) Land 5.72 sq mi (14.81 km2) Water 0.21 sq mi (0.54 km2) 7973 (2010 census) State min to Milwaukee; 45 min to Madison Simliar population/size McFarland village Dane County Total 3.55 sq mi (9.19 km2) Land 3.55 sq mi (9.19 km2) Water 0 sq mi (0 km2) 7808 (2010 census) State 51 1 hour 19 min to Milwaukee; 19 min to Madison Similar population/high way connection/relation to main cities/size; but smaller size
18 Task #4 USE REAL ESTATE BROKERS
19 Task #5 DEVELOP A GREAT WEBSITE
20 DEVELOP A GREAT WEBSITE
21 DEVELOP A GREAT WEBSITE
22 DEVELOP A GREAT WEBSITE
23 DEVELOP A GREAT WEBSITE
24 Task #6 SUPPORT PROPERTY OWNERS
25 Task #7 WORK WITH MUNICIPALITY TO ENFORCE CODES Eliminates blight Keeps nuisance properties from degrading value of neighboring properties Fosters pride in the business district
26 Task #8 UTILIZE A LETTER OF INTENT LETTER OF INTENT TO LEASE August 11, 2013 Re: Fordem Avenue, Madison, WI On behalf of my client, Great Tenant of Wisconsin, I would like to propose the following lease terms for consideration by the Landlord. Landlord: Tenant: Property Location: Space: Square Footage: Use Clause: Great Landlord of Wisconsin Great Tenant of Wisconsin Fordem Avenue, Madison, WI First floor of end-cap Approximately 5,800 square feet General business offices
27 UTILIZE A LETTER OF INTENT Initial Term: Option Term: Five (5) years. Three five year options. Commencement Date: November 1, Initial Term Rent: Option Term Base Rent: Year 1 - $17.50/sq. ft. gross Year 2 - $18.00/sq. ft. gross Year 3 $18.50/sq. ft. gross Year 4 - $19.00/sq. ft. gross Year 5 - $19.50/sq. ft. gross Rent Commencement Date: December 1, Security Deposit: $10, Utilities: Rent shall escalate at 3% per year over the pervious lease year. Tenant shall be responsible for all gas and electric consumed within the leased premises. The Landlord shall be responsible for water and sewer.
28 UTILIZE A LETTER OF INTENT Janitorial: Real Estate Taxes: Insurance: Common Area Maintenance: Signage: Parking: Landlord Improvements: Tenant Improvements: Tenant shall be responsible for janitorial within the leased premises. Landlord shall be responsible. Landlord shall be responsible. Landlord shall be responsible. Tenant shall have the right to install identification signage on the sign band of the building per the Landlord s specs. Tenant shall have unlimited access to the park approximately 25 employee vehicles in the parking lot, plus the vehicles of their clients None, taken in an as-is condition. Per attached plan.
29 UTILIZE A LETTER OF INTENT The Landlord and Tenant each acknowledge that this is a proposal and is not a lease, and that this proposal is intended to be the basis for preparation of a lease by the Landlord. The Lease that is prepared by the Landlord shall be subject to the Tenant s approval and only a fully executed lease shall constitute a lease for the premises.
30 Task #9 LEARN NEGOTIATION SKILLS 1. This is a business transaction keep your emotions in check. 2. Be respectful. 3. Approach each deal with the intent of making it happen. 4. Know the good, bad and ugly about the building or space. 5. Market knowledge is power. 6. Know your competition. How do you stack up? 7. What is your true bottom line? 8. Don t be vague about your negotiations. 9. Price isn t the only factor. 10.Flexibility can offer reasonable solutions 11.Get a professional opinion and assistance.
31 Task #10 ALWAYS KEEP LOOKING Always keep looking for that next new business
32 WHAT S WORKING FOR BROKERS? 1. Know the product and/or the client. 2. Leasing / sale signage is critical. 3. Prepare data sheets sell sheets. 4. Post all listings. 5. Network with brokerage community. 6. Network, network, network with everyone. 7. Cold call. 8. Reduce objections or obstacles. 9. Utilize other professionals. 10. Close deals.
33 SO WHAT S IMPORTANT FOR YOU? 1. Think and act like community sales people. 2. Know your limitations, do what you can do - and do it well. 3. Facilitate good signage for available properties. 4. Post all available properties. 5. Create a dynamite website. 6. Understand - real estate professionals are your allies. 7. Develop simple sell sheets about the community and specific properties. 8. It s is all about sales, don t forget to sell the feeling. 9. Work your connections. 10. Involve the community citizen recruiters.
34 BUSINESS RECRUITMENT In all your outreach, no matter how small...
35 Know that even small efforts can create
36 Question? Thank you! Deb Ersland and Kristen Fish Redevelopment Resources
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