Greater Napanee Residential Development Impact Assessment and

Transcription

Town of Greater Napanee
Residential Development Impact Assessment and
Commercial Gap Analysis – Final Report
June 13, 2012
Contents
1
BACKGROUND .................................................................................................................................................. 4
1.1
1.2
1.2.1
1.2.2
1.2.3
1.2.4
2
7
8
8
9
STUDY AREA
METHODOLOGY
RESULTS
11
12
17
SITUATIONAL ANALYSIS ................................................................................................................................ 21
3.1
3.2
3.3
3.3.1
3.3.2
3.3.3
3.3.4
3.3.5
3.3.6
INTERVIEWS AND ONLINE SURVEY
SURVEY RESULTS
MAJOR THEMES EMERGING FROM STAKEHOLDER CONSULTATION PROCESS
LOCAL COLLABORATION
RETAIL AND SERVICE GAPS
AESTHETICS & ACCESSIBILITY
EVENTS AND FESTIVALS
DOWNTOWN MARKETING AND VISION FOR THE FUTURE
IMPLICATIONS FOR THE MARKETING PLAN
21
21
26
26
27
28
28
29
30
4
FOCUSING ON EXPERIENCE ........................................................................................................................ 33
5
IMPLEMENTATION PLAN................................................................................................................................ 37
5.1
5.2
5.3
5.4
2
OLIVER VILLAGE, EDMONTON, ALBERTA
WELLINGTON SQUARE, CITY OF GALT, ONTARIO
CHATHAM AND WALLACEBURG DOWNTOWN AND MAINSTREET CIP
SPENCER CREEK VILLAGE, TOWN OF DUNDAS, ONTARIO
4
7
MARKET DEMAND: METHODOLOGY & PRELIMINARY RESULTS ............................................................. 11
2.1
2.2
2.3
3
CHANGING ROLE OF THE DOWNTOWN
RECENT DOWNTOWN REVITALIZATION SUCCESS STORIES
IMPROVING DOWNTOWN NAPANEE’S INVESTMENT READINESS
IMPROVING THE DOWNTOWN PRODUCT
RECRUITING INVESTMENT FROM OUTSIDE THE COMMUNITY
RECRUITING INVESTMENT FROM WITHIN THE COMMUNITY
Greater Napanee: Residential Development Assessment and Commercial Gap Analysis
37
39
41
42
Chapter One
Background
3
1 Background
1.1 Changing Role of the Downtown
In most cities and towns in North America, the downtown core provides shopping,
dining, tourism, employment and recreational opportunities to residents and visitors1.
Traditionally these areas have been home to independent, family operated businesses
which tend to re-invest a large portion of their profits back into the local community.
Downtown areas have played and continue to play an important role, albeit a changing
one, in both the economic and civic life of cities and towns. They are a living legacy of
a community’s history, often filled with heritage buildings of architectural significance.
For much of the 19th and early 20th century, living downtown was the most efficient,
functional and desirable location for almost all demographic groups. The preference of
the elderly and young couples, and the rich and poor alike, was to live in close
proximity to where they worked and where goods and services were sold and
delivered. However, by the mid-20th century people were fleeing downtowns in favour
of bedroom communities and the suburbs.
Following the Second World War, cheap mortgages and a growing middle class fueled
new demand for housing, and subsequently rapid suburbanization, or the process by
which people, factories, offices and shops move out from the central areas of cities, in
both Canada and the United States2. The movement of people out of the downtown
was facilitated by the development of regional and national highways and the
availability of affordable modes of private transportation, where public transit and other
modes once held major modal shares. These factors enabled people to forgo the
efficiency and functionality that previously made downtowns desirable. Instead people
favoured cheap land, tract housing, safe neighbourhoods and a better return on
investment. With the people gone, downtowns of both small and large cities either
declined or were transformed into employment or entertainment centre leaving many
sites underutilized or vacant.
Today downtown sites are finding a new life as part of the intensification and
redevelopment influenced by New Urbanism and other urban movements. New
Urbanism is an urban design movement that promotes the creation and restoration of
diverse, walkable, compact, vibrant, mixed-use communities through infill development
in existing communities, and the creation of new compact and complete towns and
villages. The movement is a revival of place making that has broad benefits to a wide
range of stakeholders including residents, businesses, and municipalities (Figure 1).
1
Farst, D. (2003). Perceptions toward downtown: Surveying city manager in smaller Texas towns. Applied Research Projects, Texas
State University.
2
4
Leinberger, C (2005). Turning Around Downtown: Twelve Steps to Revitalization. Brookings Institute
FIGURE 1: BENEFITS OF NEW URBANSIM TO STAKEHOLDERS
Residents
•quality of life
•stable property values
•less traffic
•proximity to local retailers &
services
Municipalities
•stable tax base
•less spending on
infrastructure and
utilities
•improved community
image
Businesses
•increased sales due to
foot trafic
•high profits as
advertising budgets
decrease
•economies of scale in
marketing
Place has been shown by Prof. Richard Florida to play a critical role in attracting and
retaining talent in a knowledge based economy. As the economy has shifted from
being based on the production of goods to the production of ideas and innovations, it
has become increasingly necessary to attract creative and educated talent to achieve
sustained economic growth3. In the previous economy based on the production of
goods, which is closely tied historically and socially with the rise of the suburbs, it was
widely accepted that people followed jobs. Since people were thought to follow jobs,
the focus of economic development practitioners and city officials was on attracting
business, rather than creating high quality places.
Recent research into the knowledge economy by Richard Florida4, Elizabeth Currid5
and Dan Taylor6 among others suggests that where people choose to live today is
3 http://pelacfdc.ca/photos/custom/Final%20Report_EN_cover.pdf
4
Florida, R (2002). The Economic Geography of Talent. Annals of the Association of American Geographers Vol. 92, No. 4, pp. 743755
5
5
Currid, E. (2007). The Warhol Economy: how fashion, art, and music drive New York City. Princeton, NJ: Princeton University Press.
influenced by a variety of factors, not just jobs. People are increasingly mobile and
positioned to make the decision on where to live based on quality of life questions
including cost of living, access to cultural amenities and entertainment options and
natural beauty. With the ability to choose where to live, many are favouring
communities that present a unique place-based value proposition. As the traditional
centre for culture and heritage in most communities, downtowns offer the uniqueness
and vibrancy that people prefer. As a result the revitalization of downtowns, to make
them more diverse, vibrant and authentic centres is increasingly being seen as a
critical aspect of economic development, especially as it relates to the attraction and
retention of knowledge-based workers and their families.
That people today would prefer the downtown over the suburbs would come as little
surprise to Jane Jacobs. In her classic essay, “Downtown is for the People”7 written
1958, Jacobs expressed her distaste for the giant tract developments being proposed
at the time,
“They will be spacious, park like, and crowded. They will feature long
green vistas. They will be stable and symmetrical and orderly. They will
be clean, impressive, and monumental. They will have all the attributes
of a well-kept cemetery.”
In contrast she saw the downtown as a place that could be made lively and exciting
because of its multi-functionality.
Housing is a cornerstone of downtown development and a key ingredient of a strong
downtown economy. Downtown housing extends the cycle of activity beyond the
workday, creating a 24-hour neighbourhood that is vibrant and active around the clock
generating a positive image, drawing increased numbers of visitors and improving
safety by providing ‘eyes’ on the street. Downtown residents create and expand the
market for downtown businesses by demanding a diverse mix of products and services
including retail, restaurant and entertainment facilities. Additionally downtown
residents take an active role in growth and improvement issues.
Other benefits of downtown housing include more efficient use of the town’s
infrastructure, expanded lifestyle and housing choices and a reduced reliance on
automobiles. A downtown’s ability to reach its enormous potential will be strongly
linked to the continued and accelerated development of a diverse range of housing
options.
6
Dan Taylor, G. B. (2008). Economic Restructuring through Culture in Small Towns and Rural Areas:Building Creative Rural
Economices, A Case Study of Prince Edward County, Ontario. Gatineau, QC: Conference Board of Canada.
7 Downtown is for the People, fortune Magazine (1958)
6
1.2 Recent Downtown Revitalization Success
Stories
Downtowns, with their history, architecture, and inherent cultural heritage are the soul
of communities. Cities and places that have successfully revived the fortunes of their
downtowns are generating pride, community spirit and economic benefits. Beyond this,
strong downtowns also provide an economic vitality that results in a more diversified
business base, less leakage to neighbouring shopping centres, better support and
incubation of small business, reduction of sprawl, protection of property values, and an
increase in the community’s options for goods and services. A healthy downtown is a
symbol of community pride and history. Not investing in downtown puts a community at
risk of losing, or never realizing, all of these positive potential impacts.
Across Canada, governments, agencies and the private sector are actively investing in
the future of downtowns and under-utilized lands. Cities such as Galt,ON, Dundas, ON
and Picton, ON have all been active in the redevelopment of their downtown
properties, providing incentives and other forms of support to developers. These
efforts are bringing new businesses, activities and people to downtown locations and
communities. Below are three examples of downtown redevelopments that have been
completed over the last decade.
1.2.1 Oliver Village, Edmonton, Alberta8
The Village, according to the case study developed by the Canadian Mortgage and
Housing Corporation in cooperation with the City of Edmonton Planning Department,
“represents a catalyst in the rejuvenation of Edmonton’s downtown core, and has been
transformed from a polluted and abandoned rail site into a small but vibrant
community”.
Completed in 2003, the economic benefits of the redevelopment were almost
immediate. Prior to construction the 3.9 hectare site generated $69,072 in tax
revenue. In 2004, one year after completion, the commercial establishments alone
paid $183,000 in taxes to the City. In addition to the tax benefits, the site increased
residential densities and added commercial activity to the area.
Today the 45,000 sq. ft. of commercial space is fully occupied by 10 retailers including
Liquor Barn, Chrome Spa Salon and Chocolate Exquisite. Over the last 5 years the
rental cost of these locations has steadily increased from approximately $24 to $28$30 per sqft. The stores benefit from the local residential traffic made up of middle
class empty nesters. Since the initial development was completed in 2003, the
surrounding area has continued to redevelop with several industrial buildings being
converted into condo`s. It is expected that the area will continue to flourish as the City
of Edmonton has announced plans to bring the LRT through the Village.
8
http://www.cmhc-schl.gc.ca/en/inpr/su/sucopl/upload/Brownfield-Redevelopment-for-Housing-in-Canada-Case-Studies-OliverVillage-Edmonton-Alberta.pdf
7
1.2.2 Wellington Square, City of Galt, Ontario9
WELLINGTON SQUARE BEFORE
Wellington Square is a residential development of 82 townhouses on a formerly
contaminated site in Galt City Centre, Cambridge. The site was home to the
R. McDougall Foundry and as a result became contaminated with heavy metals.
According to the site developer First Suburban Homes, the site has had a positive
impact on the city. Prior to development, the site generated $15,000 per year in
municipal tax revenues. After development, that value increased to approximately
$205,000 annually.
In the Canadian Mortgage and Housing Corporation case study, the City and
developer were both of the opinion that the increase in local residents would stimulate
new business investment in the surrounding area. City officials also noted that the
redevelopment started a process of rejuvenation in Galt City Centre, Cambridge’s main
downtown area.
Today, Galt City Centre is a mix of students, singles, elderly, families and low income
individuals who all have a reason to call it home. Before the redevelopment process
began many buildings were in disrepair and the area suffered from high crimes rates.
As people have moved back downtown, the crime rate has fallen and new restaurants
and retailers have opened their doors further increasing the attractiveness of the
downtown. According to one local councillor, once the process of rejuvenation started
it took on a life of its own, further enhancing the area.
1.2.3 Chatham and Wallaceburg Downtown and Main Street
CIP
Community Improvement Planning (CIP) is a widely used practice across Ontario.
CIPs are designed to revitalize and beautify downtown and main street areas that have
declined, as a result of a shift in shopping and purchasing patterns towards suburban
shopping centres, big box retail and electronic shopping.
In 2004, Chatham-Kent adopted a Downtown and Main Street Community
Improvement Plan to combat the decline of its downtown areas. The CIP included a
wide range of programs including matching 50-50 grants and loans for downtown
façade improvements, rehabilitation of rental apartment units and the creation of new
commercial courtyards and patios. As part of the plan, the town developed a list of
Urban Design Guidelines to make sure any future improvements fit within the
community’s streetscape.
Between 2004 and 2008 the Municipality invested $1.05 million dollars of tax payer
money in the CIP resulting in a total of 84 applications for façade improvements,
residential rehabilitation and its patio program.
9
http://www.cmhc-schl.gc.ca/en/inpr/su/sucopl/upload/Brownfield-Redevelopment-for-Housing-in-Canada-Case-Studies-WellingtonSquare-Cambridge-Ontario.pdf
8
WELLINGTON SQUARE AFTER
The return on investment was quite substantial for the community. The grant and
community support resulted in the private sector contributing $4.3 million in the form of
building improvements. The private sector investments have indirectly benefited the
municipalities smaller downtowns as the number of properties applying for a
commercial vacancy tax rebate in both downtown Chatham and Wallaceburg has
fallen. In Chatham, the number has decreased from 24 in 2001 to 15 in 2007, and in
Wallaceburg the number has decreased from 10 to six over the same time period
(Municipality of Chatham-Kent, 2008).
1.2.4 Spencer Creek Village, Town of Dundas, Ontario
As one of the oldest and most industrialized cities in Canada, Hamilton has made it a
priority to redevelop many of its brownfield sites. Spencer Creek Village is a high
density development in the former Town of Dundas, in the City of Hamilton. From
1861-1988 the 4.5 hectare site housed a range of industrial activities over its lifespan,
including machine and tool manufacturing, machine tool engineering for rail roads and
manufacturing of mining equipment.
The economic benefits of the mix-use development were captured in the 2010, City of
Hamilton ERASE Community Improvement Plan. According to the City of Hamilton,
the development increased the annual property tax collected by the City by $1.76
million. In addition the $95 million project generated $12 million in personal income,
$6.6 million in GST revenues and $7.6 million in PST revenues.10
10
National Roundtable on Environment and Economy (NRTEE). 2003. Cleaning up the Past, Building the Future – A national
Brownfield redevelopment Strategy for Canada. Ottawa, ON.
9
Chapter Two
Market Demand: Methodology & Preliminary Results
10
2 Market Demand: Methodology
& Preliminary Results
As directed by the Town of Greater Napanee, the purpose of the market demand
analysis is to evaluate how new residential units in close proximity to the Downtown
will affect the demand for retail11 and local services12.
2.1 Study Area
Downtown Napanee is located in what can be considered central Napanee, just
minutes from Highway 401. For this study, Downtown Napanee is defined by Mill
Street to the south, Adelphi Street to the east, Bridge Street to the north and Richard
Street on the west (Figure 2). The Downtown is zoned for general commercial in the
Town of Greater Napanee’s Zoning Bylaw, which permits residential and nonresidential uses such as apartments, administrative offices and hotels. To
accommodate owner/operators, recent zoning amendments allow residential units to
be located behind stores on the main level.
FIGURE 2: DOWNTOWN NAPANEE
Source: Ontario Ministry of Agriculture, Food and Rural Affairs, November 2011
11
Retail comprises establishments primarily engaged in selling merchandise, generally without transformation, and rendering services
incidental to the sale of merchandise.
12
Dispersed industries that provide services almost exclusively for the area in which they are located. As a result, their regional
employment is typically roughly proportional to regional population.
11
While the purpose of the market demand analysis is to determine the potential impacts
of the redevelopment of 88 Dundas Street East (the former Gibbard Factory lands) on
retail and local services located in the Downtown, due to data limitations, the actual
study area will be the Town of Greater Napanee as defined by Statistics Canada.
Until its closure in 2008 the Gibbard Factory was the oldest furniture factory in Canada,
dating back to 1835, when the founder of Gibbard Furniture Shops Limited moved to
“The Napanee” as the village was then known. Shortly after arriving, he leased a mill
on the canal and began to manufacture sash, doors, furniture, coffins and many other
items. The furniture factory would burn to the ground twice, once in 1864 and 1874,
before construction of the current structures began in 1875. The current factory is in
fact sixteen separate buildings, built against each other at various times to create the
existing structure.
2.2 Methodology
Projections for increased retail and local service demand in the Downtown are based
on the number of households expected to occupy 88 Dundas Street East, and their
expected annual expenditures on goods and services in the local market. It is assumed
for the purpose of this analysis that all households occupying 88 Dundas Street East
are new residents of Greater Napanee, and therefore represent an exogenous shock
to demand for retail and local services. Therefore, retail and local service demand is
defined as a function of the number of households in the market area and the average
household expenditures used on retail and local services in a given year. By
accommodating new residents in close proximity to the Downtown, it is expected that
existing retail establishments and local service providers in the area will absorb some
of the new demand, as households purchase goods and services before and after
work. However, the addition of new residents to the town may also drive investments
from new businesses as well.
It is unrealistic to assume that new households will spend every dollar in close
proximity to their home. Surrounding the Downtown and Greater Napanee are a
number of other larger regions (i.e. Greater Napanee’s 401 commercial area, Kingston
and Belleville) that offer retail options and local services to households. To address this
issue is difficult, requiring information on commuting patterns, consumer behaviour,
pricing and other factors that are beyond the scope of this analysis. In an attempt to
incorporate household expenditures made outside of Greater Napanee into the
analysis, three scenarios are considered under which Downtown merchants still absorb
new demand resulting from redevelopment.

12
Low – Downtown businesses capture rate, 10% of expenditures made by
new households.
Medium - Downtown businesses capture rate, 25% of expenditures made
by new households.

High - Downtown businesses capture rate, 40% of expenditures made by
new households.
The estimated increase in demand resulting from the redevelopment for each scenario
will be calculated using the percentage increase in demand and demand formulas
below. The percentage increase in demand captures the change in total demand
resulting from the redevelopment. The demand equation is used to derive both the
current demand (Demandcrnt) and level of demand after the redevelopment is
completed (Demandrdvl). In calculating demand the median after-tax income and
percentage of average expenditures spent on retail and local services are held
constant.
1
2
_
_ _
$
% _
_
_ & _ The individual variables that define the demand for retail and local services are
described below.

Median After Tax Income – all private households
(
_
_ _
$
)
Using data from the 2006 Census of Canada, the Median after-tax income for all
households in Greater Napanee was $44,181. The after-tax income of a household is
the total of the after-tax incomes of all members of that household. After-tax income
refers to total income from all sources minus federal, provincial and territorial taxes
paid for during the year.
Total income refers to the total money income received from the following sources
during the calendar year by persons 15 years of age and over:

13
Wages and salaries (total)
Net farm income
Net non-farm income from unincorporated business and/or professional
practice
Child benefits
Old Age Security pension and Guaranteed Income Supplement
Benefits from Canada or Quebec Pension Plan
Benefits from Employment Insurance
Other income from government sources
Dividends, interest on bonds, deposits and savings certificates, and other
investment income

Retirement pensions, superannuation and annuities, including those from
RRSPs and RRIFs
Other money income.
Figure 3, outlines the median household income for each type of household in the
Town of Greater Napanee in 2005.
FIGURE 3: MEDIAN AFTER TAX INCOME, 2005
$63,608
$70,000
$60,000
$50,000
$44,181
$47,403
$43,924
$40,000
$30,000
$19,539
$20,000
$10,000
$0
Median after-tax
Median after-tax
Median after-tax
Median after-tax
income in 2005 - All income in 2005 income in 2005 income in 2005 private households Couple households Couple households
One-person
($)
with children ($) without children ($) households ($)
Median after-tax
income in 2005 Other household
types ($)
Source: Statistics Canada; 2006 Census of Population.

Percentage of Average Expenditures Spent on Retail & Local Services
(% _
_
_ & )
Average household expenditure data is collected annually as part of the Survey of
Household Spending. The survey is used to obtain detailed information about
household spending during the reference year and is reported at three geographic
levels - National, Provincial and Census Metropolitan Areas. Since household
expenditure information cannot be obtained for Napanee, the data for the Province of
Ontario (
14
Figure 4) represents the best substitute, and is used to carry out the analysis. To
focus in on expenditures related to retail and local services, the following annual
expenses are excluded: shelter, household operations, transportation, healthcare,
recreation and education. It is also assumed that the saving rate of all households is
zero meaning that all after tax income is spent throughout the course of the year.
Based on these assumptions the average household in Ontario spends 31.5% of their
annual after-tax income on retail and local services.
15
FIGURE 4: AVERAGE HOUSEHOLD EXPENDITURES, ONTAIRO, 2009
Average Expenditures
per Household ($)
Households Reporting
Expenditures (%)
Total expenditures
76,577
100
Total current consumption
53,572
100
Food
7,284
100
Shelter
15,560
99.8
Household operation
3,824
99.9
Household furnishings &
equipment
1,930
93.7
Clothing
3,164
98.9
Transportation
10,300
98.4
Health care
1,718
96.1
Personal care
1,294
99.7
Recreation
3,742
97.4
250
68.8
Education
1,551
31.7
Tobacco products and
alcoholic beverages
1,406
80.6
Games of chance (net
amount)
252
66.5
Miscellaneous
1,296
90.6
Personal income taxes
16,133
96.4
Personal insurance payments
and pension contributions
4,807
83.2
Gifts of money and
contributions
2,065
75.2
Reading materials and other
printed matter
Source: Statistics Canada, CANSIM, table 203-0001. Last modified: 2010-12-17

Total Number of Households
In the Town of Greater Napanee there are a total of 6,120 households. For the purpose
of this report it is assumed that the new development at 88 Dundas Street West, will
add 100 units to Napanee’s housing stock.
16
FIGURE 5: TOTAL HOUSEHOLDS, GREATER NAPANEE, 2006
1,670
0%
20%
2,215
40%
1,475
60%
760
80%
100%
Households containing a couple (married or common-law) with children
Households containing a couple (married or common-law) without children
One-person households
Other household types
Source: Statistics Canada; 2006 Census of Population.
Summary of Assumptions

17
Households occupying 88 Dundas Street East are expected to be new
residents of Greater Napanee and represent an exogenous shock to the local
economy.
The redevelopment of 88 Dundas Street East will create 100 new units for
households. It is further assumed that each of these new households will be
occupied by permanent residents of the Town of Greater Napanee.
Redevelopment of 88 Dundas Street East for residential purposes is the most
beneficial form of development for the Downtown area. It is possible that a
mixed use or another form of development would provide positive externalities
that are difficult to measure.
Average expenditures and median after-tax income remain constant despite
the shock to demand caused by the new households.
Average household expenditure data for the Province of Ontario approximates
the spending of households in Greater Napanee.
Households in Napanee spend 10%, 25% or 40% of their after-tax income in
Greater Napanee.
The savings rate of households is zero so after-tax income equals
expenditures.
2.3 Results
Using the methodology described above it is estimated that redevelopment of the
Gibbard Furniture Factory and the addition of 100 residential units at the east end of
Downtown Napanee would benefit the local retailers and service providers. It is
estimated that each new household can be expected to spend $13,917 annually on
goods and services. Using this figure, if each of the 100 new households were to
spend that amount Downtown spending would increase by $1,391,700. Therefore the
3413 properties classified in Downtown Napanee as retail, service or restaurants and
entertainment could experience a maximum average increase in demanded of $40,932
per location. The results for the Low, Medium and High Scenarios are below:

Low – Downtown Captures up to 10% of the Expenditures Made by New
Households
In this scenario the new households are expected to make 10% of their annual
expenditures on goods and services Downtown. As a result the expected increase in
total demand Downtown is $139,170 or an average increase in demand of $4,093 per
property for the 34 classified locations.
FIGURE 6: 10% CAPTURE RATE
Demand
Calculation
Total Demand
Current Downtown Spending
= $44,181*0.315*0.25*6120
$8,517,213
Downtown Spending After
Redevelopment
= $44,181*0.315*0.25*6220
$8,656,383
Increase in Downtown
Spending
$139,170
Average Increase in
Downtown Spending for Each
of the 34 Existing Retail,
Service, Restaurant and
Entertainment Businesses
$4,093
13
2010 Business Mix Analysis of Greater Napanee conducted by the Ministry of Agriculture, Food and Rural
Affairs
18

Medium - Downtown Captures 25% of the Expenditures Made by New
Households
total demand Downtown is $347,925 or an average increase of $10,233 per property
for the 34 classified locations.
Demand
Calculation
Total Demand
Current Downtown Spending
= 44,181*0.315*0.25*6120
$ 21,293,032
Redevelopment
= 44,181*0.315*0.25*6220
$ 21,640,958
Spending
$347,925
Average Increase in
Downtown Spending for Each
of the 34 Existing Retail,
Service, Restaurant and
Entertainment Businesses
$10,233

High- Downtown Captures 40% of the Expenditures Made by New
Households
total demand Downtown is $556,680 or an average increase in demand of $16,372 per
property for the 34 classified locations.
19
Demand
Calculation
Total Demand
Current Downtown
Spending
= 44,181*0.315*0.4*6120
$ 34,625,533
Redevelopment
= 44,181*0.315*0.4*6220
$ 34,068,852
Spending
$556,680
Average Increase in
Downtown Spending for
Each of the 34 Existing
Retail, Service, Restaurant
and Entertainment
Businesses
$16,372
FIGURE 9: TOTAL & PER CAPITA INCREASE IN DOWNTOWN SPENDING
Increase in Total
Downtown Spending
Downtown Spending
Increase per property
$556,680
$16,372
$347,925
$10,233
$139,170
Low
20
$4,093
Medium
High
Low
Medium
High
Chapter Three
Situational Analysis
21
3 Situational Analysis
3.1 Interviews and Online Survey
In order to understand the perspective of local businesses and community leaders on
the issues and opportunities for Downtown Napanee a stakeholder consultation
process was undertaken. This process of stakeholder consultation is meant to ground
our findings and theories in the opinions and thoughts of residents, business operators
and community leaders already present in the area or have an intimate knowledge of
the area and its character. These stakeholders are critical to the process and are able
to provide excellent information on the area’s strengths and weaknesses as well as the
opportunities and threats that may be confronting its Downtown development potential.
Also identified in the process are ‘critical’ issues that must be addressed in order to
facilitate and foster growth. This process included telephone stakeholder interviews
and an online survey resulting in a high level competitive analysis which will inform the
final marketing plan for Downtown Napanee.
3.2 Survey Results
Question 1.
Where '5' represents investments that are most appropriate and '1' represents
investments that are least appropriate, please rate the following with regards to the
types of investment the Town should focus on encouraging/undertaking in the
Downtown core?
Response Summary
It was the opinion of survey respondents that the Town`s main investment attraction
priority Downtown should be the encouragement of new Commercial and Retail
investment. Commercial and Retail received the highest average rating, 4.73, and
80% of respondents rated it as the Most Appropriate investment type. Commercial
and Office investment also rated highly with an average rating of 4.2.
22
FIGURE 10: AVERAGE RATING OF INVESTMENT TYPES
4.73
5
4
3
3.8
4.2
3.67
3.73
2.47
2
1
0
Questions 2 and 3.
To what extent does the Downtown currently perform as a centre for the following
areas of commercial demand, where '1' represents weak performance and '5'
represents a strong performance?
From your perspective, to what extent should (as opposed to "does" in the previous
question) the Downtown function as a centre for the following types of commercial
demand, where '1' represents no preference and’5' represents a strong preference?
Response Summary
Figure 11: Current FUNCTIONS OF downtown compared to what the functions should
be, seen below, combines the responses from survey questions 2 and 3 to better
reflect the differences between how the Downtown is currently perceived and how
people believe it should be.
Currently the Downtown is seen as performing weakly as a destination for a number of
commercial activities. When asked how the Downtown performs as an area for nine
different commercial activities, only Convenience Service (e.g. Banks, Pharmacies)
received an average rating greater than 4 out of 5. Convenience Service was also
the only activity where the majority of respondents felt that the Downtown was
performing strongly. The weakest commercial activities were found to be
Entertainment (e.g. Theatre, Live Music Venue) and Destination Retail (e.g. Furniture
Stores, Electronics Stores).
23
In general, respondents believed that the Downtown should be a centre for all types
of commercial activities. In fact, it seems that the Downtown should function as a
destination for all types of commercial activities except Destination Service and
Destination Retail which are the only two types of businesses to receive average
ratings below 4.
By combing questions 2 and 3 it is possible to compare the extent to which Downtown
does function as a centre for different types of commercial demand versus how
respondents feel it should function. By doing this it is far easier to identify areas
where the difference is the greatest between how things currently are and the way
people envision they should be. Subtracting the average rating for each function found
in question 2 from the ratings from question 3 clearly reveals where the greatest gaps
in the Downtown currently exist.
FIGURE 11: CURRENT FUNCTIONS OF DOWNTOWN COMPARED TO WHAT THE FUNCTIONS
SHOULD BE
24
To what extend
does the
Downtown
currently
function as a
centre for the
following types
of commercial
demand
Should the
Downtown
function as a
centre for the
following types
of commercial
demand*
Difference
between current
Downtown
function and
desired Types of
commercial
demand
Entertainment (e.g. Theatre,
Live Music venue)
1.53
4.67
-3.14
Full-service Food (e.g.
Family Restaurant, Fine
Dining)
2.67
4.80
-2.13
Convenience Retail (e.g.
Convenience Store,
Grocery Store)
2.33
4.07
-1.74
Comparison Retail (e.g.
Shoe Store, Book Store)
2.93
4.67
-1.74
Destination Retail (e.g.
Furniture Store, Electronics
Store)
2.07
3.80
-1.73
Limited-service Food (e.g.
Coffee Shop, Fast-Food
Establishment )
3.53
4.27
-0.74
Comparison Service (e.g.
Hair Stylist, Dry Cleaner)
3.40
4.00
-0.60
Destination Service (e.g.
Lawyer, Real Estate Agent)
3.33
3.87
-0.54
Convenience Service (e.g.
Bank, Pharmacy)
4.33
4.47
-0.14
Identified
functions where
the Downtown
currently does
not meet the
vision or
expectations of
stakeholders.
It is noticeable that the scores for “should” are all quite high which indicates a generally
high expectation on what the Downtown should offer.
Questions 4-12.
Questions 4-12 of the online survey sought to identify retail and service gaps in the
Downtown for specific business types including Clothing Shops, Motorcycle, Boat and
other Motor Vehicle Dealers and Speciality Food Stores. Business types are specific
commercial activities selected for the survey based on the business mix analysis of
Downtown Napanee done by OMAFRA. In OMAFRA’s analysis the business types
identified in questions 4-12 were found to be underrepresented in the Downtown.
These questions were meant to determine if local stakeholders agreed with the
technical analysis. Respondents were asked for each business type to indicate to
what degree they Strongly Agreed or Disagreed with the following statements:
a) This is a current retail/service gap in Downtown Napanee?
b) This fits with my vision for Downtown Napanee?
c) This use has the potential to support the needs of Downtown residents?
d) This will generate/support tourism and visitor activity in the Downtown core?
e) This will generate/support commercial/residential investment in the Downtown
core?
Response Summary
In the table below, the results for each statement have been aggregated to indicate a
“Yes”, “Maybe” or “No” response. For example, if the majority of respondents either
Strongly Agreed or Somewhat Agreed that the business type represented a
retail/service gap, then the answer was recorded as a Yes in the table below.
Overall, the survey of business types revealed a strong divide between retail
businesses and services. The majority of respondents to the survey felt that there is
currently a gap in the Downtown for all retail business types (Clothing Shops, Shoe
Stores, Motorcycle, Boat and Other Vehicle Dealers, Speciality Food Stores, Art
Dealers and Gift, Novelty and Souvenir Shops) identified in the survey. When asked
the same five statements for the service business types (Employment Agencies and
Auditing, Accounting and Tax Preparation) the majority of respondents did not once
agree with the statements.
25
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ot cyc
or le
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e c h i c at
ia
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l ty e D a n
Fo e al d O
A
o d e rs the
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r
St
D
ea
or
le
es
rs
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ift
,N
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op v e
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an
nt
d
al
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O
uv
f fi
en
ce
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ir
s
ud
i
P r ti n
ep g,
a A
Em ra t cc o
i
p l on un
ti n
oy
m
g
en
an
tA
d
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ge
x
nc
ie
s
M
M
ot
St
oe
Sh
C
lo
t
hi
ng
or
Sh
es
op
FIGURE 12: RETAIL/SERVICE GAPS
Retail
This is a current retail/service gap in
downtown Napanee.
This fits with my vision for downtown
Napanee.
This use has the potential to support the
needs of downtown residents.
This will generate/support tourism and
visitation in the downtown core.
This will generate/support
commercial/residential investments in the
downtown core.
Service
Yes
Yes
Yes
Yes
Yes
Yes
Maybe
Maybe
Maybe
Yes
Yes
No
Yes
Yes
Yes
Yes
Maybe
Maybe
Yes
Yes
Maybe
Yes
Yes
Yes
Yes
Maybe
Maybe
Yes
Yes
Maybe
Yes
Yes
Yes
No
Maybe
No
Yes
Yes
Maybe
Yes
Yes
Yes
Maybe
Maybe
No
Note: Business types are specific commercial activities selected for the survey based on the
business mix analysis done by OMAFRA which showed these products and services are
underrepresented in a community the size of Greater Napanee.
Question 13.
What additional retail/service uses would you like to see in the Downtown core to
better service the residents of Downtown Napanee/Greater Napanee?
Response Summary
Respondents indicated that the Downtown needs a retail and service mix that will fit
with local demographics. There is a feeling that the Downtown is saturated with
service type business and needs a grocery store and upscale restaurant to better
serve the community. A number of other ideas were put forward as additional
retail/service uses including a(n):

26
Further waterfront trail development
Ice cream shop
Arts and culture facility (theatre, cinema, gallery, multi-purpose arts centre)
Community college
LCBO
Gas station
Home furnishings
Antiques
Bookstore

Hardware store.
Question 14.
What additional retail/service uses would you like to see in the Downtown area to
better attract visitors to Downtown Napanee/Greater Napanee?
Response Summary
In some instances the responses to this question overlapped with the previous
question with ideas such as fine dining and clothing shops being mentioned. Where
responses did not overlap, people almost uniformly focused on what new experiences
could be brought to the Downtown to attract visitors. The experiences suggested
included a live music venue, more events and outdoor patios. Perhaps the most
unique idea was the use of the Gibbard Factory as a museum that would highlight the
woodworking heritage of Greater Napanee and provide speciality woodworking
training.
3.3 Major Themes Emerging from Stakeholder
Consultation Process
3.3.1 Local Collaboration
Recent research from the International Economic Developers Council’s Accredited
Economic Development Organization has found the management of local networks
and organizations to be one of the most important factors related to improved
economic outcomes across 17 communities. By bringing together a diverse group of
stakeholders, economic development organizations can better leverage resources,
improve service delivery; enhance the capacity of the community to attract investment
and deliver events and ultimately foster stronger and more diverse outcomes.
In speaking with stakeholders in Downtown Napanee, the project team identified that
there are a number of organizations interested in the long-term success of the area.
Discussions on governance and current state of planning Downtown centred on the
roles and responsibilities of the Business Improvement Area (BIA), the Napanee
Chamber of Commerce and the Core Area Advisory Committee. Overall the
stakeholders see these three groups collaborating but feel that more could be done to
articulate responsibilities among them. Given that many of the interviewees were
either store owners or involved with the BIA, it tended to be the most discussed of the
organizations. The BIA is undergoing a major transition as new people are taking
leadership positions on its board of directors. This transition may be timely as many of
the retailers interviewed expressed that they do not currently participate with the BIA.
Instead, some of the retailers are self-organizing to put on events such as the
27
Christmas Shopping Party. The BIA is currently looking at the creation of a Downtown
Strategy, which should be encouraged in order to establish some consensus on the
best way forward.
The County of Lennox and Addington’s Economic Development Office needs to also be
incorporated into this discussion of roles and responsibilities as it supports a wide
range of initiatives that have implications on Downtown development.
3.3.2 Retail and Service Gaps
As a consumer retail and service destination, Downtown Napanee competes against
local power centers, malls and other communities such as Kingston and Belleville for
customers. These other destinations offer a greater variety of goods and services and
more opportunity for comparative shopping. In addition, they typically have longer
hours of operation than the stores located in Downtown Napanee. Throughout the
stakeholder consultation process interviewees noted that many of the retail locations in
the Downtown are closed by 5:00 p.m. due to poor street lighting14, family obligations
and/or low demand.
Overwhelmingly the stakeholders identified the mix of retail and services locations as a
weakness of the Downtown. One respondent simply stated it’s bad and not surprising
that the vacancy rate is much higher today than five years ago. The local retailers
interviewed identified the lack of retail diversity as one of the primary reasons so many
local residents (including themselves) are forced to go to Kingston and Belleville for
major purchases. The following list includes specific retail and service gaps identified
by local stakeholders:

14
Toy store
Baby and children’s gifts store
Gas station
Music store
Gourmet food store
Patio options
Ice cream shop
Amenities for boaters
Waterfront trail development
Community college
Home furnishings store
Hardware store

Sporting goods
Men’s apparel
Christmas store
Bakery
Grocery store
Youth Centre
Book store
Ethnic food restaurant
Arts & culture facility
LCBO
Antique shop
Poor street lighting is a well-documented problem that could be resolved with investment in more lighting
standards.
28
The commercial gaps Downtown were found to be clearly split between retail and
service. The stakeholders consulted indicated that the Downtown, in its current form,
lacks many of the retail establishments that they envision it having. For example, in
the case of Entertainment and Destination Retail, people quite clearly identified the
need this specific commercial activity to play a more prominent role Downtown. The
availability of service related activities meanwhile were found to be adequate and in
line with the vision people have for the Downtown. This suggests that the main focus
of future investment attraction and planning should be on attracting more retail,
restaurants and entertainment related activities.
3.3.3 Aesthetics & Accessibility
The aesthetics and accessibility of any Downtown plays an important role in attracting
local residents and tourists. Opinion on aesthetics and accessibility were fairly
uniform. The availability of free parking in the Downtown is seen as a strength, that is
both welcoming to visitors and makes the core more accessible to people. When it
comes to aesthetics, the look and feel of the Downtown, people want a more uniform
and consisted appearance among all the store fronts. Currently some stores are seen
as having unattractive signage and windows, making the Downtown look disorganized
and less sophisticated. Also the vacancies and empty lots Downtown break-up the
continuity of the shopping reducing the amount of time visitors spend exploring local
shops. While some stakeholders feel the BIA can be doing more to improve the
aesthetic of the Downtown, new garbage cans, bike stands and lights are being
planned. These editions to the Downtown respond directly to concerns expressed to
the project team during interviews. This suggests that there are already positive
feedback mechanisms in place for BIA members to suggest ideas new ideas and
improvements. Unfortunately, the BIA does not seem to be effectively communicating
its upcoming plans with its members.
3.3.4 Events and Festivals
One of the interview topics was Downtown events and festivals. Events and festivals
are important to the health of any downtown as they act to draw people to the area and
market it as a tourist destination. The interviews revealed both positive and negative
aspects of the events.
Positive

29
Many of the most successful events in Downtown Napanee are organized by
local merchants with support from the BIA and other stakeholders. The
Christmas Shopping Party and Scarecrow Festival are two examples of the
self-organized events that are bringing new life to the Downtown. It was
suggested that this self-organizing behaviour is a major asset of the
community and is part of what makes Napanee a special place to both live
and work. When asked about this, one respondent said it was a very
Napanee thing to come together and give back to the community by
volunteering both time and money to a variety of initiatives.

The bi-weekly Market held on Saturdays draws local residents and tourists.
Organized in large part by the Core Area Advisory Committee the market is
viewed by many as adding vibrancy and activity on a regular basis to the
Downtown area. While the feedback for the market was largely positive, there
was some negative feedback described in more detail below.
Negative

There was wide-spread agreement that having great events in Downtown
Napanee is a good thing. The concern heard on several occasions was that
the benefits tend to be confined to specific parts of the Downtown. For
example the market, described above as an asset, draws people to the west
end of the Downtown but does not benefit the shops on the east end of town.
The events rely heavily on the volunteerism of business owners who often
work very long hours and also have family commitments. It was expressed to
the project team that without dedicated staff to help plan and organize the
events, it is difficult for them to grow. The owners, while being committed to
running the events, do not have the time to take on the added responsibility
that comes with an ever larger event.
3.3.5 Downtown Marketing and Vision for the Future
A 2001 U.S. national survey of 264 independently managed business improvement
districts in large and small communities found marketing and promotion to be important
to downtown renewal. This finding supports a long held belief that downtown
revitalization takes more than bricks, park benches and ornamental lights.
The interviews revealed a number of advantages Downtown.

30
The first advantage people spoke about was the geographic advantage of
being located strategically between Toronto, Ottawa and Montreal along HWY
401. The stretch of highway connects three of largest metropolitan regions in
Canada is seen as a potential source for new and repeat customers with
disposable income. The stakeholders pointed to Picton as an example of
what can happen when a community in this region effectively targets the
populations located along the St.Lawrence.
Secondly, the recently improved waterfront is considered an underutilized
asset that could be better promoted to bring in traffic during the summer
months.
Downtown
Napanee Events
(2011)
Midway
Sir John A Day
Movie under the
Stars
Music in the Street
Hockey Hall of Fame
Antiques & Classics
Car Show
Napanee Fair
Scarecrow Festival
History & Hauntings
Ghost Tour
The Knight before
Christmas
Santa’s North Pole
Winter Chili Festival
Christmas Shopping
Party

Thirdly, the free parking is another asset that aligns well with the first
advantage above. Without free parking stores Downtown would be at a
further disadvantage to large box stores which already offer lower prices.
Finally the friendliness and small town feel of Napanee has and will continue
to attract entrepreneurs. The owners of the Starlet Boutique were convinced
to relocate from Peterborough to Napanee in large part due to the friendliness
of the community.
If the strengths of the Downtown are promoted properly the stakeholders interviewed
mostly agreed that the area can continue the gains it has made over the last five years.
To do so the vision that seems to be implicitly shared by merchants and other
stakeholders must be articulated. There is currently no strategy document guiding the
development of the Downtown at a time when stakeholders feel the area should be
seeking to connect better with the waterfront and better utilize vacant properties such
as the Gibbard Factory. While there may be some members of the community
resistant to change, many see the development of Downtown being first and foremost
for local residents followed by people in neighbouring communities and tourists. The
people have a desire to see the area develop in a manner similar to Picton which has
successfully maintained a strong sense of community while attracting people from
Toronto, Ottawa and Montreal.
The vision for Downtown put forward by stakeholders includes a number of factors
such as clean streets, strong sense of community and stores that attract people from
surrounding communities. What seems to underlie these seemingly distinct factors is a
belief that the future of the Downtown lies in bringing all these things together to create
unique experiences for consumers. In the course of the interviews, we heard about
how the stores should be cool and artistic and how more events are needed to attract
people to the Downtown. Many of the suggestions and ideas that came forward
through the stakeholder consultation process were about creating memorable
experiences for customers.
3.3.6 Implications for the Marketing Plan
The consultation process with Downtown Napanee stakeholders identified a number of
commercial gaps primarily related to retail. The people interviewed and those that
responded to the online survey both generally agreed that the Downtown would benefit
improved retail options including new boutique shops offering clothing for men, women
and children, a book store and establishments related to arts and culture.
Having identified these gaps the Town must begin to take steps to attract the
entrepreneurs and business owners that would venture to fill these commercial gaps
Downtown. The attraction of new investment Downtown requires that the Town and
related organizations consider a number of issues when delivering any marketing plan.

31
A number of key underutilized properties are negatively affecting the image of
Downtown Napanee

32
Stakeholders believe there is a strong ‘community’ feel to Downtown
Napanee, but that it is missing opportunities to host events and become a
more popular stopover for people traveling between Toronto and Ottawa or
Montreal.
Pockets of Downtown Napanee have been invigorated by the opening of new
stores in recent years. The stakeholders feel that the Downtown would
benefit from improvements, to the attractiveness of certain properties and
safety at night.
Responses were negative when it comes to the Downtown offering interesting
and fun experiences. People do not feel that the area offers a wide enough
array of shops, nightlife, and places to sit and relax that are welcoming to
visitors.
Currently neither the Town nor the BIA is involved in determining the use of
vacant properties. To improve the overall marketability of the Downtown both
organization must work with local landlords so that the downtown is appealing
to local consumers and tourists.
The BIA lacks the resources to be involved in the planning of events. The
absence of dedicated staff responsible for organizing and promoting initiatives
is hurting the growth of businesses. In addition the BIA’s website does not
offer the type of information that would be of interest to potential investors.
Over the last 3-5 years the Downtown has been improving despite the lack of
a strategic plan for the area. Without a plan that clearly sets out goals,
responsibilities and actions it will be difficult for the Downtown to take the next
leap forward.
The Town of Greater Napanee needs to become more actively involved in
marketing and promoting the Downtown in targeted market areas outside of
Greater Napanee. Target regions include Toronto, Ottawa, Montreal and
northern New York State.
Chapter Four
Focusing on Experience
33
4 Focusing on Experience
For Downtown Napanee to fill its commercial gaps, it must focus on creating unique
experiences that entice and attract people to the area. Throughout the consultation
process, stakeholders expressed a desire for more boutiques that were trendy, more
arts and culture and more events Downtown. People were focusing in on the need for
more experiences Downtown.
In today’s competitive environment, where the Downtown’s shops and store owners
are competing against neighbouring communities and online retailers, they must
individually and collectively begin producing experiences. For example restaurants
can organize their services around particular themes; boutique stores can organize
events and poetry readings. In doing so the goal is to create a connection between the
consumption of goods and services, by using it, by participating in activities and
events, or by visiting or by living in vicinity to places and attractions.
Like Napanee, small communities in Scandinavia have been suffering; as knowledge
based activities typically prefer to locate in large metropolitan regions. In response to
this trend these communities started to exploit the benefits of producing unique place
bound experiences using the notion of the ‘experience economy’.
The idea of the experience economy is rooted in the work of Pine and Gilmore, who in
the late 1990’s looked at the competitiveness of business through Michael Porter’s
theories on differentiation. They pointed out that the tastes of consumers for both
goods and services was and would continue to change and that differentiation which
could once be achieved through quality improvements in goods or improved levels of
services were slipping away. Figure 13: the progression of economic value, shows
how the creation of economic value has changed over time. As the economy shifts up
the latter from “goods” to “services” and now to “experiences”, cities and businesses
have had to reconsider how they operate and how they remain competitive. In the
industrial economy producers offered manufactured standardized goods to consumers.
The service economy was about offering customized services to clients. In the
experience economy the suppliers must focus on offering personal experiences to
guests and customers.
34
FIGURE 13: THE PROGRESSION OF ECONOMIC VALUE
The design and production of unique experiences in a place is not any easy task. The
creation of experiences involves many elements working together. It is a process that
is analogous to staging a play. In order to successfully stage a play, it must be
produced, sets must be designed, costumes made, actors selected and the production
must be branded and marketed to specific demographics. The success of the play
comes from the attention to detail and planning of each and every element.
For Downtown Napanee to grow and attract the investment needed to fill its retail gaps
the areas stakeholders must strive to create a unique customer experience by focusing
on:

Events & Festivals
Events and Festivals are a popular economic development. The finite time
periods of events and festivals encourages visitors to attend and often attracts
new people that would not otherwise experience Downtown Napanee. The
extra exposure acts as an indirect form of marketing. The new tourists bring
with them new money, further diversifying the market and increasing the
revenue of local operators.
Napanee’s proximity to major metropolitan areas can be seen as both a
blessing and a curse. The Town’s proximity to these markets is a blessing as
events and festivals are accessible to a much large population. On the other
hand large metropolitan centers such as Toronto offer a wide range of events
that the Downtown must compete against. Events and festivals in Downtown
Napanee must be sufficiently different from those held in Toronto, Ottawa, or
Montreal if people are going expend time and energy to attend.
35

Local Demographics
As has already been mentioned, downtown housing extends the cycle of
activity beyond the workday, creating a 24-hour neighbourhood that is vibrant
and active around the clock generating a positive image, drawing increased
numbers of visitors and improving safety by providing ‘eyes’ on the street.
Downtown residents create and expand the market for downtown businesses
by demanding a diverse mix of products and services including retail,
restaurant and entertainment facilities. Additionally downtown residents take
an active role in downtown growth and improvement issues.
The potential redevelopment of the Gibbard Factory into condominiums will
likely necessitate new commercial investment Downtown. With new residents
Downtown, business will likely look to cater to the convenience shopping
patterns of new residents.

Arts & Culture
Arts and cultural activities help to bring an area to life and define its unique
characteristics. When integrated into the Downtown, arts and culture can help
put a community on the map. For example the Canadian Council of the Arts
uses Chemainus, BC as an example of a community that altered the course of
its economic fortunes by creating historic murals and statues.
Throughout the consultations, stakeholders expressed that there has long
been discussions around the development of a theatre and other arts and
culture venues Downtown. Large scale venues such as a museum, theatre or
college can act as an anchor tenant for the Downtown and attract new
businesses downtown.

Branding & Marketing
During the consultations, the lack of consistently positive image rose to the top
of challenges being faced by the Downtown. An initiative to establish a
Downtown ‘brand’ fits perfectly with the community’s need to change poor
external perceptions.
Although this strategy does not specifically identify any one particular brand
that the community should employ, it should send a positive message to a
number of key target markets:
•
•
36
What it says to the prospective business investor: Downtown
Napanee is an interesting place that is attracting customers and offers
unique experience that keep people downtown. The community cares
about its citizens and will do what it can to keep them as valuable
contributors to local business. This is a place I want to invest.
What it says to the prospective resident: Downtown Napanee has a
great quality of life and offers a safe community. The Downtown is
filled with activities and people making it a place to enjoy leisure time.
Chapter Five
Implementation Plan
37
5 Implementation Plan
This implementation Plan has four main objectives:

Objective #1: Improving the investment readiness of Downtown Napanee.
Objective #2: Improving the Downtown product.
Objective #3: Recruiting investment from outside the community.
Objective #4: Recruiting investment from within the community.
However, as an umbrella initiative that impacts each of the four objectives, a
Downtown Strategy should be completed in order to establish some consensus on best
ways of moving forward and who is responsible for what activities. While this is an
initiative currently being investigated by the BIA, involvement of the Town, County,
CFDC, Chamber of Commerce and others should be encouraged.
5.1 Improving Downtown Napanee’s Investment
Readiness
FIGURE 14; ACTIONS FOR OBJECTIVE #1 – IMPROVING INVESTMENT READINESS OF NAPANEE
Goal
1.1
Create a
Downtown
Napanee
investment
package
targeted at
retailers and
restaurants
38
Actions

Research, writing and a promotional messaging should be
completed to describe specific investment opportunities for
the targeted downtown business types. Although the
investment opportunity ‘sheets’ will require different
research and copywriting, each one will follow the same
design template.
Package should include information from the BIA, Town,
Chamber of Commerce and Prince Edward/Lennox &
Addington Community Futures Development Corporation.
One-Year Budget
Outsourced: $2,000
per opportunity for
research/writing;
$1,000 for template
and $400 for
customization of each;
$500 per opportunity
for translation; plus
printing and scanning
costs; 3 days
In-house: printing cost
only; 2 weeks
Goal
Actions

1.2
Improve
online
exposure and
profile of
Downtown
Napanee`

1.3
Maintain
available
properties
information
39

One-Year Budget
In order to fill the commercial gaps the strength of
Downtown Napanee’s online presence needs to improve.
The BIA and Town should be highlighting proactive
initiatives to develop the Downtown and drive home the
desire for specific types of investment.
Online activities should be targeted at potential investors
(entrepreneurs), local residents and tourists.
The Downtown should expand its use of social media.
While the BIA and Town should lead the promotion of
events and new initiatives, business owners should also
be encouraged to be active on platforms such as Twitter,
Pinterest and Four Square.
Retailers and service providers should be encouraged to
strategically use deal sites such as Groupon and Living
Social.
Both the Town’s and BIA’s websites should make better
use of video and photo’s. When used effectively video is
one of the most efficient ways to create generate user
engagement.
Encourage people to post positive experiences on the
BIA’s Facebook page. Using Facebooks native API all
posts can be easily displayed on
www.downtownnapanee.com.
3D modelling of the downtown is currently being
completed. Leverage this asset for visitor marketing and
investment attraction initiatives.
Outsourced with inhouse support:
Investment varies
significantly but
minimum $5,000 for
base website and
upwards of $20,000 if
multimedia is
incorporated
The Town has a good commercial building inventory on its
website with detailed listing sheets only one click away.
It is very important to ensure the listing index and the
individual listing sheets are easily sent by email. Giving
out printed copies, either in person or by mail/facsimile will
happen far fewer times than distribution by email.
Maintained in-house:
minimal cost but 1-2
weeks of staff time
required over the
course of a year
Goal
Actions

1.4
Contact
information
goes on
EVERYTHING!
One-Year Budget
An investment decision is one of the most significant that
any business person will ever make. This type of
transaction will not happen without considerable
involvement of staff. Ensure that staff contact details are
very prominent on EVERYTHING that is published by the
Town. Direct prospects to a person, not “info” or “inquiries”
mailbox – they will expect personal service and want to
know they will get it before picking up the phone or
sending the email.
No cost; minimal time
5.2 Improving the Downtown Product
FIGURE 15: ACTIONS FOR OBJECTIVE #2 – IMPROVING THE DOWNTOWN PRODUCT
Goal
Actions

2.1
Enhance the
CIP program
and downtown
property
standards bylaw

2.2
Implement
initiatives that
encourage the
transformation
of underused
buildings and
land
40

Target specific business types with enhanced CIP
incentives. For example, to attract restaurants offer
twice the improvement grant.
Signage on stores downtown can use some
consistency. Consider a property standards by-law
for the downtown that encourages awnings, front-lit
wall signs and double-sided signs that project out into
the sidewalk (most convenient for those on the
sidewalk).
Consider enhancements to the CIP that will
encourage investment into bricks and mortar to
improve the ‘rentability’ of properties.
Work with developers to determine possibility of
temporarily utilizing properties for events e.g.
buskers, theatre, art displays, craft sales, workshops,
etc.
A vibrant “twenty-four hour” Downtown requires more
people living in the district. New permanent housing
will increase street life, pedestrian traffic, and a sense
of community; support arts and entertainment venues
and restaurants; and will generate increased demand
for retail businesses – some of which are currently
unavailable in the Downtown.
One-Year Budget
in-house: 2-3 weeks of
staff time to determine
possible incentives and
inform Council for decision;
$0 for program
establishment
outsource: 1 week of staff
time; $15,000 study and
recommendations
cost for implementation to
be determined
no cost; ongoing staff
requirement
2.3
Target
DundasStreet
as initial area
for
entertainment
district
2.4
Encourage BIA
members to
leverage
increased
traffic
resulting from
events and the
market
41

Dundas Street is an ideal street in the downtown for
an entertainment area with its free parking and
accessibility to the 401
While not technically part of the Downtown, the
waterfront is a significant asset that is currently
underutilized. Opportunities to better integrated the
waterfront with the Downtown should be explored
as part of Town’s larger
plans to beautify the
downtown
Encourage BIA members to run creative promotions
during events to attract customers. For example
during the Scarecrow Festival, stores could
participate in a decoration competition.
Provide BIA members with advanced notice of events
and suggest ways they may wish to be involved. By
aligning activities and promotions with the event, the
overall experience of people attending will increase,
resulting in more return visits to the area.
no cost; ongoing staff
requirement
5.3 Recruiting Investment from Outside the Community
FIGURE 16: ACTIONS FOR OBJECTIVE #3 – RECRUITING INVESTMENT FROM OUTSIDE THE COMMUNITY
Goal
Actions

3.1
Reaching out
to
independent
businesses
in
neighbouring
communities

15
Independent businesses that are already established in other
communities can be an excellent source of opportunities, as these are
typically owner-operated businesses. The Town should look within 100
km to find businesses that fit the targeted markets. The survey of
potential businesses can include in priority order the following areas:
Belleville, Kingston, Picton and other smaller communities in the region.
The Town must proactively seek out leads to attract entrepreneurs and
established retail and service providers to fill the existing gaps
Downtown. An ongoing source of leads will come from an effective cold
calling program that is supplemented by reverse trade shows. Organize
a (or a series) ‘reverse trade show’ where the Town brings displays and
presentations to individual municipalities attended by prospective
investors and business developers who are especially invited for the
event. Research into the most appropriate invitees must be carefully
conducted and the ‘trade show’ must include representatives Napanee
that clearly understand and can represent the many aspects involved in
business development i.e. real estate, community services, businesses
support services, costing (taxes, development charges) and statistics.
Invitees should be independent retailers or service providers with proven
track record of success and capable of expanding in the next 5 years.
The events would include a reception, video presentation, information
areas and personalized packages for attendees.
One-Year Budget
Each trade event
would cost approx
$6,000 based on 10
participants and 20
‘targets’ showing up
– providing they are
all in the vicinity and
will not require travel
expenses.15 A
video and exhibit
stand is also options
with a one-time cost
of $10,000 each.
The $6,000 (based on 10 delegates and 20 participants) is broken out as follows: Pre event invitations – unique invitations
with a gift enclosure as a lure – hand delivered ($500); Accommodations and meals ($200/day/pp = $2,000; Travel costs
and shipping ($500); Reception room/catering/refreshments ($30 pp + refreshments = $1,200); Entertainment – local to
Greater Napanee ($500); Gift packages ($50 pp = $1,000); Miscellaneous ($300)
42
Goal
Actions

3.2
Engaging
visitors to
the
community
who indicate
an interest in
setting up

One-Year Budget
Visitors and those looking for a new home (which may involve a homebased business) will be an important target to try and capture, but it is
difficult because these people do not generally identify themselves.
To effectively capture these opportunities the Town must have as many
people as possible in the community knowing exactly what it does.
Downtown stakeholders must know to refer prospective investors to the
Town or ask if they can forward contact info to the Town.
Ensure that promotional materials are broadly distributed and in good
supply at stores, municipal offices, tourist information centres,
restaurants, etc. Furthermore, ensure that those who have the
information at their counters can offer an accurate 20 second description
of the Downtown and a plug to ensure the customer knows that the
Town is approachable.
There are events that are targeted to visitors from outside the area i.e.
the Scarecrow Festival, Christmas Shopping Party and Market. Each
one of these is an opportunity to set up information kiosks to distribute
information on the area from a residential, tourism and business
perspective.
Does not take a
considerable amount
of money, but does
take considerable
time to ensure the
local distribution is
strong and to
participate in local
events.
Support this with
other ideas identified
in the “Lure
Package” section
below.
5.4 Recruiting Investment from Within the
Community
Researchers have shown that existing businesses create 60-90% of all new economic
growth in a community. Smaller communities such as Napanee tend to sit in the
higher part of the above range because they are more challenged than urban centres
in attracting inward investment.
FIGURE 17: ACTIONS FOR OBJECTIVE #4 – RECRUITING INVESTMENT FROM WITHIN THE
COMMUNITY
Goal
4.1
Have an
ongoing
BIA Survey
43
Actions

Every business owner in the BIA should be contacted a minimum
of once every 12 months to evaluate their situation and
determine the likelihood of their expansion/contraction.
Having an ongoing business retention and expansion program
can be an important factor in a successful investment attraction
initiative. It will allow the Town to learn from its own business
community: what barriers to growth need to be removed, what
opportunities exist in the broader economy as well as per
One-Year Budget
In-house: Requires
upwards of 30% of a
staff person to manage
with an additional
annual budget of $510,000 for materials,
events, travel costs,
etc.
Outsource: $15-25,000

4.2
Implement a
communica
tions plan
to reach out
to important
influencers.

individual business, how the communities can better target its
sector-based marketing and learn of specific prospect firms or
funding opportunities.
The BR+E survey is also an opportunity to talk about investment
opportunities with individual businesses.
This process creates an opportunity for ongoing “open door”
dialogue between government and business – often an area of
conflict.
BIA, Chamber and Advisory Committee should work closely
together to ensure they know the commercial opportunities that
are being promoted.
Distribute the Town’s lure package at community events.
Develop relationships with the local media to ‘talk up’ the
success stories of the Downtown.
with the price varying
on the number of visits
desired.
Does not take a
considerable amount of
money, but does take
considerable time to
ensure the local
networks are strong.
The Town needs to inspire those who visit to stop and stay for a day or to ‘buy local’.
The following media outlets are recommended. The potential response is indicated.
FIGURE 18: MEDIA OPPORTUNITIES
Media
Action
5.1
Use Local
Radio for
Tourism
Information
Channel
5.2
Radio –
station
specific
Use local radio to highlight local
events, directions, historical sites
with a call to action to explore the
community. Mix with messages
about investment opportunities.
Four different radio spots
60 second promos
Two for shopping
Two for industry
To re-enforce the brand
44
Entice listeners (especially
those with originally no
intention of stopping) with
sounds of the area. Not
season specific.
Cost
Cost would vary
dependent upon each
independent station.
Promotion of local radio
stations – (possible new
business opportunity).
Heavy rotation on easy to find
local stations – Kingston and
Belleville areas. Use different
musical tastes for
diversification (e.g. classical
to tell people about artisans)
Cost will vary but
approximately $3,000 for
four spots
Approx $400/$500
5.3
Posters
Response
1,000 poster in every shop
window
Design approx $100 $200
Media
5.4
Banners
5.5
Website
Action
Downtown Core 3’ x 25’ long.
Printed on one side
Response
Seen throughout the main
streets
Cost
Starting at $1,400.00
Design $100-$200
A website is the most cost
effective and easiest way to
reach the largest demographic.
Add an “investors” section.
Shopping and investor
oriented website
Varies significantly but
minimum investment of
$1-2,000 per year for
base website. Upwards
of $20,000 if multimedia is
incorporated
Ministry of Transportation
Easy to see on the
highway/roads
From $300 per year for
single row signs on 401 to
$3,900 per year for major
attraction status
Ontario Tourism Information
Centers
Toronto, 401 corridor, Ottawa,
Kingston etc
5.6
Tourism
Oriented
Directional
Highway
Signage
5.7
Rack Cards
Special editions of weekend
newspapers (e.g. Kingston WhigStandard)
5.8
Advertising
Community newspapers (e.g.
Napanee, Picton)
5,000 starting at $800
Design $200-$300
To educate that a day trip will
be worth it
Prices vary significantly
To educate weekend cottage
visitors there is more to see
and do in close proximity
Inserts/flyers distributed through
newspaper
5.9
Public
Relations
Attract tourist or season-based
newspapers and magazines to
come and explore (e.g. write-up
in Cottage Life, etc.)
Wide reach of target audience
with in depth content to
educate/excite audience
Possible accommodation /
travel expenses
Re-enforce brand
5,000
~$1.00 per piece
5.10
Shopping
Bags
45
Media
Action
5.11
Tour
specific
events
46
Scavenger/Treasure Hunt
Response
Good PR opportunities and
sponsorship opportunities –
local businesses or corporate
sponsors
Cost
Volunteer or with an
Events Management
company – cost
dependent on scope of
project