ECONOMIC & COMMUNITY DEVELOPMENT IN MARTINSBURG Initial - - PowerPoint PPT Presentation

ECONOMIC & COMMUNITY DEVELOPMENT IN MARTINSBURG

Initial presentation of approaches, tools, and policies for consideration.

INTRODUCTION

• These recommendations are derived from my review of documents;

conversations with staff, residents, business owners, and the majority of councilmembers; site visits throughout the city; and my own observations.

• Not looking for a formal

YES/NO on these items. Rather, seeking guidance on which recommendations to develop further. In some cases, future approval of policies or expenditures will be needed.

~1870 ECONOMIC DEVELOPMENT

~1890 ECONOMIC DEVELOPMENT

1926 ECONOMIC DEVELOPMENT

EARLY 20TH CENTURY ECONOMIC DEVELOPMENT

1966 ECONOMIC DEVELOPMENT

DUNN BUILDING: MILL/OUTLET/GOV’T CYCLE OF ECONOMIC DEVELOPMENT

1992 ECONOMIC DEVELOPMENT

POST-MALL ECONOMIC DEVELOPMENT

THEME: INDUSTRY & INFRASTRUCTURE

CITY OF MARTINSBURG’S CONSISTENT ROLE IN ECONOMIC DEVELOPMENT

Primary focus on infrastructure, public assets, and civic services.

RECENT CITY OF MARTINSBURG ECONOMIC/COMMUNITY DEVELOPMENT ACTIVITIES

• Brownfields assessment grant and full ESA’s of privately owned brownfield sites to

understand the magnitude of concern and support redevelopment.

• Comprehensive Economic Development Plan by Garner Economics, which led to

creation of Economic & Community Development Office.

• Renovation and operation of Caperton/MRB train station to enable MARC and

Amtrak connectivity.

• N. Raleigh Street extension provides alternate routing & connection between

medical facilities and downtown; unlocks previously inaccessible parcels.

• Oak, Burke, Queen Bridge/Underpass improvements and accompanying

placemaking investments.

• “West End” annexation for growth and future development.

RECENT CITY OF MARTINSBURG ECONOMIC/COMMUNITY DEVELOPMENT ACTIVITIES

• Parking Management Plan & Garage Study
• New water treatment plants, upgrades to equipment and water lines
• Use of CDGB program to provide housing, and public-serving capital

improvements

• Use of TIF district to support development.
• Street repaving, ADA curbing and accessibility projects
• Home Rule to provide flexibility in funding and programmatic operations

RECENT CITY OF MARTINSBURG ECONOMIC/COMMUNITY DEVELOPMENT ACTIVITIES

• Construction of new MPD HQ
• Gateway & Wayfinding Signage Project
• The Martinsburg Initiative, partnership between MPD & schools
• HOME program to support home ownership

CURRENT ECONOMIC DEVELOPMENT “CAPITAL STACK” TOOLKIT

• HUB Zones (Federal contracts, loan eligibility)
• New Market Tax Credits
• Historic Preservation Tax Credits
• State
• Federal
• Opportunity Zone (capital gains tax incentive)
• Downtown B&O Tax Incentive
• Citywide B&O Tax Incentive (Phase-In)

INITIAL POLICY FOCUS

BLIGHT ABATEMENT: attraction of businesses, residents, customers all depend on having an attractive place. REDEVELOPMENT & ADAPTIVE REUSE: brownfields and vacant, outmoded facilities are a form of blight that limits new uses, creates gaps in the neighborhood. But they also present

• pportunities for adaptive reuse and infill redevelopment.

QUALITY OF PLACE: going beyond just removing blight, people want nice housing, attractive public realm, green space & parks, walkable businesses, access to civic features. (Businesses locate where the best employees want to live.) EXISTING BUSINESS SUPPORT: Martinsburg has a dedicated core of businesses that are committed to the community. Focus on policies supporting those businesses while working to attract additional investment. INVESTMENT ATTRACTION: addressing housing blight depends on attracting/empowering people who want to live in currently blighted areas. Redeveloping brownfields depends on attracting investors willing to partner and undertake complex cleanup and adaptive reuse projects. Attracting outside investment depends on marketing.

GARNER ECONOMICS REPORT (DEC. 2013)

• 1. ORGANIZATIONAL/STRUCTURAL
• 2. PRODUCT IMPROVEMENT: INITIATIVES &

ASSETS

• 3. MARKETING (“TELL THE STORY”)

ORGANIZATION & STRUCTURE

ORGANIZATION & STRUCTURE

• Garner recommended:
• Creating Economic & Community Development Office
• Formation of municipal Economic Development Authority

PUBLIC CORPORATION STRUCTURAL OPTIONS

Urban Renewal Authority v. Economic Development Authority

• Garner report recommended EDA.
• However, an alternate and perhaps more suitable option, is the Urban Renewal

Authority.

• Both:
• Creations of state code (EDA, Ch. 7 on Local Gov.; URA, Ch. 16 on Public Health)
• Enacted by Council Resolution
• Volunteer members
• Public corporation
• Buy, sell, hold property
• Bond

ECONOMIC DEV. AUTHORITY

• Encourage business through loans,

investments, and transactions to attract and assist businesses.

• Stimulate expansion of businesses
• Eliminate conditions of blight by

acquisition and preparation of land.

• Development and redevelopment in

accordance with community plans.

• Prepare redevelopment plan and acquire,

clear, sell, lease, and make available land in accordance with redevelopment plan.

URBAN RENEWAL AUTHORITY

COMPARING ORGANIZATIONAL TYPES

COMPARING ORGANIZATIONAL TYPES

• Communities with Urban Renewal Authorities include:
• Charleston

Clarksburg

• Fairmont

Fayette County

• Parkersburg

T

• wn of Nutter Fork
• Wellsburg

Huntington

COMPARING ORGANIZATIONAL TYPES

• BOTH play important roles
• Berkeley County has an EDA
• Urban Renewal Authority would be a new tool that could:
• Address the key constraints of BLIGHT and BROWNFIELDS
• Pull together into a single redevelopment plan:
• Brownfield redevelopment
• Housing blight abatement
• Needs of historic preservation of key civic structures
• Need for green space reclamation and planning (e.g. Tuscarora Greenway Initiative &

stormwater/floodplain planning)

FEEDBACK/DISCUSSION ON CONSIDERATION OF URBAN RENEWAL AUTHORITY

INITIAL POLICY RECOMMENDATIONS & TOOLS

SHORT-TERM, LOW COST (“LOW-HANGING FRUIT”)

MARTINSBURG BUSINESS AMBASSADOR PROGRAM SMALL BUSINESS TECHNICAL SUPPORT PROGRAM “BETTER BLOCK” COMMUNITY IMPROVEMENT PROGRAMS

SHORT-TERM, LOW COST (“LOW-HANGING FRUIT”)

MARTINSBURG BUSINESS AMBASSADOR PROGRAM

• Garner recommended creation of a “One Stop” Permitting Program.
• A true “One Stop” is not possible in Martinsburg, where all businesses require

separate State registration and many require additional County compliance.

• Martinsburg can provide one-stop clarification of the steps needed to comply with

city code; the tie-ins to WV state code; and the tie-ins to County code.

• We can provide a “Roadmap to Business Compliance” for businesses seeking to
• perate in Martinsburg, including names and contact info for relevant departments,

specific forms required, and contact for a point person to serve as “Business Ambassador” when questions/concern arise.

• Structured as bi-weekly meeting convened by Econ/Comm Dev Director to

include: Planning Department (planning, engineering, inspections), Business Licensing, Fire Department, and other ad hoc officials as business specifics require.

SHORT-TERM, LOW COST (“LOW-HANGING FRUIT”)

SMALL BUSINESS TECHNICAL SUPPORT PROGRAM

• Small businesses operators often lack the funds to invest in technical

assistance, data, and expertise.

• The Economic & Community Development Office can procure and provide

certain data and expertise to Martinsburg’s small businesses. This includes:

• Citywide and neighborhood economic indicators;
• ESRI Business Analyst data on demographics and economic behavior;
• Student assessment teams & pro bono business coaches (as available);
• Buildout of additional resources as requested.

SHORT-TERM, LOW COST (“LOW-HANGING FRUIT”)

“BETTER BLOCK” COMMUNITY IMPROVEMENT PROGRAMS

• Coordinated, community-driven

initiatives to dramatically improve a small area (1-2 blocks)

• Empowers & directs volunteerism to

make visible improvements

• City involvement encourages public

realm improvements along with private property improvements.

• Encourages a culture of creativity and

micro-improvements.

• Community Cleanup + Pop-Up

Activation + Temporary Placemaking

FEEDBACK/DISCUSSION OF “LOW- HANGING FRUIT” INITIATIVES

MARTINSBURG BUSINESS AMBASSADOR PROGRAM SMALL BUSINESS TECHNICAL SUPPORT PROGRAM “BETTER BLOCK” COMMUNITY IMPROVEMENT PROGRAMS

POLICY RECOMMENDATIONS & TOOLS

• 1. POLICY of using CDBG funds for economic development, including housing

improvements as blight abatement.

• 2. Home Revitalization Loan Fund (Garner est. ~$500k - $1M)
• 3. Vacant Commercial/Industrial Tax Disincentive
• 4. First-time Homebuyer EHAP w/ Significant Employers
• 5. Façade Improvement Program: Consider Grant v. Loan
• 6. Small Business Low-Interest Loan Fund

POLICY RECOMMENDATIONS & TOOLS

POLICY of using CDBG funds for economic development, including housing improvements as blight abatement.

• Martinsburg makes good use of CDBG funds for a variety of community development, housing, and

public improvements.

• Martinsburg has not dedicated CDGB funds to economic development activities
• Eligible economic development activities include:
• Housing-related real estate activities, including construction, rehabilitation, and homeownership assistance;
• Code enforcement, historic preservation, renovation of closed buildings;
• Planning for land use, recreation, environmental design, public space & recreation, floodplain & wetlands

management, etc.

• Microenterprise assistance
• Commercial rehabilitation
• Public Facilities and improvements that support economic development
• Assisting a for-profit business

POLICY RECOMMENDATIONS & TOOLS

Home Revitalization Loan Fund (Garner est. ~$500k - $1M)

• In its analysis, Garner Economics recommended a Home Revitalization Loan

Fund designed to finance the rehabilitation of downtown housing in order to combat blight and improve the safety, livability, and attractiveness of downtown Martinsburg.

• Garner estimated the scale of need at $500K to $1M, but made no concrete

recommendation of funding source. Presumably, CDBG funds might be used to seed a low-interest revolving loan fund, and serve as match to other grants and sources of funding.

POLICY RECOMMENDATIONS & TOOLS

Vacant Property Disincentive

• Many cities are struggling with vacant properties. Martinsburg has vacancy

issues among all core property types: residential, commercial, industrial.

• Cities across the nation are working to disincentivize downtown commercial

vacancies.

• Vacancy fee/tax?
• Pop-up programming and tenant attraction?
• Listing assistance and marketing/promotion?

POLICY RECOMMENDATIONS & TOOLS

Vacant Property Disincentive

• The fee/tax approach has been effective, but mostly where demand is already

high.

• Owners disfavor financial tools and prefer positive marketing such as pop-up

placemaking.

• Recommendation:

1. Explore the legalities and effectiveness of tax/fee approach, but 2. Also explore best practices for owners to receive exemption based on participation in certain programming or activities that contributes to the community and markets their property to prospective tenants. 3. Consider usefulness of this approach for other property types beyond downtown commercial.

POLICY RECOMMENDATIONS & TOOLS

Employer Assisted Homebuyer Program (EAHP)

• Governmental entities (City, County, School Board, etc.) are significant employers in Martinsburg, and

there is opportunity to encourage more employees whose jobs serve the city to live in the city.

• To encourage civic employees to live where they work—often in the areas they serve for teachers,

first responders, etc.—some governments provide fist-time home-buying assistance as part of the employee benefit package.

• Examples:
• California gives low interest loans to school employees of up to 4% of the home purchase cost. Importantly, these

funds can go toward down payment.

• DC’s Employer-Assisted Housing Program offers District employees a deferred, 0% interest loand and matching

funds grand for down payment and closing costs on their first home, so long as it is located in the District of Columbia.

• Such a program has multiple benefits, including: (a) promoting city homeownership; (b) giving civic

workers a greater personal stake in the communities they serve; (c) creating a significant employee benefit for employee attraction.

POLICY RECOMMENDATIONS & TOOLS

Façade Improvement Grant & Downtown Activation Program

• Main Street Martinsburg operates a façade improvement loan program, but

indicates that interest has waned.

• Generally, most occupied and operating downtown businesses have good

facades/signage. The challenges are unoccupied spaces lacking signage or activation.

• To spur existing businesses who need façade improvement to use the funds,

consider converting the loan program to a grant program. This will overcome the “opportunity cost” issue.

• Develop a “downtown activation program” to help make vacant storefronts

attractive, and positively contribute to the downtown look and feel. This can be scaled, from simple window art and decorations, to pop-up shops and events, depending on funding and interest.

POLICY RECOMMENDATIONS & TOOLS

Small Business Low-Interest Loan Fund

• Charleston Main Streets conducts a micro-loan program of $500 to $5000 that can

be used for a wide variety of purposes, including working capital, real estate for the business, capital improvements, machinery and equipment.

• Most Main Street programs do not provide funds usable for working capital—but in

WV, there is a particular justification due to the presence of inventory and B&O tax calculated on gross rather than net sales.

• Funds are provided by the WV Development Office and local banks, and administered

by a committee of Main Street Charleston.

• Martinsburg should seek partners to create a similar program, including local banks,

and inquire whether MSM or other citywide entity would be interested in and appropriate for administering such a program.

FEEDBACK/DISCUSSION ON INITIAL POLICY RECOMMENDATIONS & TOOLS

• 1. POLICY of using CDBG funds for economic development, including housing

improvements as blight abatement.

• 2. Home Revitalization Loan Fund (Garner est. ~$500k - $1M)
• 3. Vacant Commercial/Industrial Tax Disincentive
• 4. First-time Homebuyer EHAP w/ Significant Employers
• 5. Façade Improvement Program: Consider Grant v. Loan
• 6. Small Business Low-Interest Loan Fund

MARKETING APPROACH

• Focus on identifying QUALIFIED PROSPECTS for investment in Martinsburg.
• This will be done through in-person recruitment, trade shows, and traditional

business attraction efforts.

• But prospect identification can most affordably be done through digital

marketing.

MARKETING APPROACH

• Build digital marketing capacity to target multiple audiences cost-effectively
• Entrepreneurs
• Home buyers
• Investors
• T
• urists
• Each can be targeted with relevant content, building a targeted prospect list for

economic and community development.

MARKETING APPROACH

COMPONENTS:

• 1. Social Media Pages capable of Promotion (e.g. Facebook, LinkedIn)
• 2. Landing Pages to Email Content
• 3. Lead Capture System
• 4. Customer Relationship Management System
• 5. Individual Follow-up

MARKETING APPROACH (AD EXAMPLE)

Digital ads promote Martinsburg to targeted audiences. Facebook for residence/home

• wnership; entrepreneurship; small

biz recruitments; destination marketing. LinkedIn for commercial real estate; redevelopment; business expansion. Every ad links to a “landing page.”

MARKETING APPROACH (LANDING PAGE EXAMPLE)

Landing pages allow additional promotion. Capture audience emails and contact information to allow for follow-up.

MARKETING APPROACH (INFORMATION-FLOW EXAMPLE)

Contact info comes to us. Materials automatically sent to customer.

MARKETING APPROACH (EXAMPLE)

• All content created throughout this system can be repurposed for print

brochures or ads; city website; etc.

MARKETING APPROACH (COSTS)

• Setting up and running a digital marketing system like this well is a time-

consuming process.

• Requires creation of content.

Video and visual are most effective and most time-consuming form of content to create.

• I can duct tape a system together manually, but it’s not my primary skillset.

Martinsburg would be better served by outsourcing this system via contract or hiring a PT/intern for digital marketing and content.

• Local knowledge is key, as content MUST reflect Martinsburg.

MARKETING APPROACH

Recommendations: (1) Outsource creation of digital marketing system and baseline content by RFP , with preferences for local knowledge, skill, and cost. This would give us a brand professional promoting Martinsburg efficiently to the right audiences 24-7. (2) Subsequent content can be created by EDO office and supplemental, hourly contracts with consultants. (3) Qualified leads will be contacted by EDO staff. (4) Content created for digital campaigns will be refreshed and re-purposed for website, print, conference presentations, etc.

FEEDBACK/DISCUSSION ON DIGITAL MARKETING APPROACH

KEY TOPICS FOR FURTHER STUDY

KEY TOPICS FOR FURTHER STUDY

(A.K.A. ELEPHANTS IN THE ROOM)

CIVIC ASSETS ASSESSMENT & PRIORITIZATION

• How does the city prioritize the maintenance and revitalization of multiple

historic, civic assets facing structural decline?

• Apollo Theatre, Roundhouse, Arts Center, Brownfield Historic Properties

GATEWAYS & GREENWAYS

• Need for improved public realm along Queen for overall attractiveness,

pedestrian flow, and activity for businesses and visitors.

• Opportunity for visual cues along King to entice Interstate 81 visitors

downtown.

• Need green space and attraction of Tuscarora Creek Trail and connection to

Route 9 bike trail.

• Opportunity to use right-of-way to encourage walking, biking, neighborhood

engagement, and connectivity. (The more people out and about, the safer and more inviting our streets feel for the next person.)

• Opportunity to use green infrastructure funds for these quality-of-place

purposes.

ECONOMIC IMPACT OF WEEKEND VISITORS & TOURISM GAP ANALYSIS

• How much does each incremental tourist trip contribute to the city?
• What is the unrealized potential for downtown tourism?
• What amenities/attractions are needed to realize that potential?

BUSINESS TAXES: GOOD, BAD & UGLY

• Recognizing that taxation in WV is a national outlier and the city has little

control over much of the tax structure, but we compete daily with MD/VA/PA:

• How can we communicate clearly to small businesses and entrepreneurs the actual

tax burden?

• What is the right balance among local tax types to support businesses and providing

necessary and beneficial city services?

• How can we align interests, recognizing that growth in economic activity benefits all

parties, public and private?

PARKING

• How can we better manage and communicate existing parking

supply, ease payment, and improve perception while developing a long-term strategy that complements our development pipeline?

Thank you.

sfarthing@cityofmartinsburg.org