Business Resource Guide - Grand Haven Main Street DDA
Transcription
Business Resource Guide - Grand Haven Main Street DDA
Core Business District Grand Haven Business Resource Guide 2013 MAIN STREET PROGRAM MSDDA Board Main Street Dan Borchers, Past Chairman Frame and Mat Shop 16-846-2170 The mission of Grand Haven Main Street Downtown Development Authority (MSDDA) is to enhance a vibrant historic business district through community efforts, plus public and private partnerships. Dale Kwekel, Chairman Grand Haven Garden House 616-842-8680 The function of fulfilling our mission statement is carried out by the following committees: George Gardner, Vice Chairman De Boer, Baumann & Company 616-846-3350 Preservation and Place Committee Business Recruitment & Retention Committee The City of Grand Haven possesses a very rich historical background, and it‘s the Preservation and Place Committee that is in charge of highlighting this heritage to the public. The committee seeks to preserve and celebrate the historical attributes of the properties within the MSDDA district and educate the community, businesses, property owners and members of the MSDDA organization about the importance of historical preservation. Meets 4th Mon. each month, 8 am The main goal of the Business Recruitment and Retention Committee is improving the local economy through the revitalization of existing businesses and recruitment of new ones. To improve business in Grand Haven, training sessions are held which allow new skills to be learned and applied. Meets 3rd Thurs. each month, 9:00 am Rheba Bolt, Secretary The Paper Place 616-846-6280 Sharon Behm, Treasurer Borr’s Shoes & Accessories 616-846-1650 Geri McCaleb Mayor of Grand Haven 842-3210 Valerie Grant Studio 206 616-847-0550 John Naser Resident, BLP Board 616-842-1628 Steve Loftis Harbor Restaurants 616-638-1648 Randy Smith Michigan Rag Co. 616-846-3150 John Steinbach Anchor Realty 231-759-7727 By planning and implementing special events, this committee focuses on increasing awareness in Grand Organization Committee Haven‘s Core Business District. Through advertising and other This committee coordinates and promotional activities, the Promotions encourages volunteers, committee members and business owners to work Committee works to give Grand Haven a positive image. towards a common goal. By allowing Meets 3rd Tues. each month, 8:15 am the responsibilities to be shared by a variety of people, the workload is Principal Shopping District spread out and cooperation is Committee enhanced. Meets 4th Tues. each month, 8:00 am Meets 2nd Tues. each month, 8:30 am Denny Swartout Duncan Consulting 616-846-9509 David Ten Cate Capstone Real Estate 616-847-1031 Promotion Committee 2 TA B L E O F C O N T E N T S Main Street Program Table of Contents Introduction Core Business District Development Improvements Area Demographics Local Market Segmentation Retail Market Potential Target Businesses Core Business District Map MSDDA Services Chamber Services MI SBTDC Services Funding Sources FAQ Employment/Economic Climate Tax Overview Utility Information Available Properties Contacts City Timelines for Planning Department Calendar of Events 3 2 3 4 5-8 9 10-11 12-16 17 18 19 20 21 22-24 25-27 28 29 30 31 32 33-40 41 BUSINESS TOOL KIT INTRODUCTION Welcome to Grand Haven, Michigan! Grand Haven is one of Michigan‘s premier lake front communities, and its Core Business District is a proven retail location, with several businesses such as Floto‘s, Ver Duin‘s Printing and Fortino‘s operating here for over 60 years. The Core Business District of Grand Haven offers many fine restaurants, boutiques, and specialty retail establishments with unique products that provide a very competitive and enticing alternative to other shopping areas. The Grand Haven Main Street DDA is partnering with the City of Grand Haven and the Chamber of Commerce, Grand Haven, Spring Lake and Ferrysburg, to provide the best retail business climate available in West Michigan. The City of Grand Haven realizes its potential lies in the growth and expansion of existing businesses paralleled with clustering of new retail establishments. In addition to the many business tools available, the quality of life in Grand Haven is second to none. The area offers a diverse economic base, competitive wages, and a strong work ethic. In the pages that follow you will find, for your convenience, a summarization of resources, contact information, and tools to help your existing or new business venture succeed. 4 CORE BUSINESS DISTRICT DEVELOPMENT & In 2005 the City of Grand Haven, in partnership with the Main Street Downtown Development Authority (MSDDA), hired Johnson Hill Land Ethics Studio to conduct a Downtown Master Plan. The plan has guided development efforts in the Core Business District and continues to serve as a vision for the community. One of the key components of Grand Haven‘s Core Business District development has been owner conversion of the second and third floors of Core Business District buildings into condos and other residential unit configurations, which provide an on-site source of customers and an added measure of safety for the Core Business District retail establishments. At the request of Grand Haven‘s MSDDA, the City of Grand Haven approved a TIF in 2005 to capture taxes on improvements in the DDA District to pay for much of its planned redevelopment. The MSDDA TIF financing mechanism allows for the capture of the incremental growth of local property taxes over a period of time to fund public infrastructure improvements. By borrowing against the future tax increments, the MSDDA is able to fund large-scale projects, which can lead to new development opportunities within the Core Business District. Also in 2005, The City of Grand Haven was selected as a Michigan Main Street community. Being a selected community in the Michigan Main Street program has provided Core Business District Grand Haven with additional services, skills, and knowledge, giving it the necessary framework to be a viable core business district. The DDA and the City have partnered together on redevelopment of the Core Business District‘s infrastructure. To date, three Core Business District block-long parking areas have been totally redone with overhead utility lines relocated underground, trash collection consolidated in central collection structures, walkways reconstructed with attractive imprinted concrete, and new landscaping and light fixtures installed. The first three blocks of Washington Ave., the main artery through our Core Business District business district, have also been renovated to include new water and sewer lines, sidewalks, street surfaces, lighting, landscaping, and installation of an extensive snow melt system. Over nine million dollars has been invested in these two important infrastructure projects. In addition to the redevelopment activities detailed above, the Core Business District area has seen the complete renovation of the Loutit District Library, Tri-Cities YMCA, Grand Haven Community Center, City Marina, Boardwalk, and Ottawa County Courthouse. Private investment has been high within the Core Business District area, as well, with more historic buildings being restored and repurposed than replaced with new structures. For example, the building at 41 Washington served as the former Story and Clark Piano Factory. In the 1980s the building was converted into ground floor retail and restaurant space while the upper levels have been maintained as office space. The building at 20 Washington housed the Grand Theater until it was converted into ―A Seafood and Oyster Bar,‖ where it serves as a popular destination while maintaining the theater‘s original façade and marquis. 5 CORE BUSINESS DISTRICT DEVELOPMENT & The last few years have also brought façade updates for several buildings on Washington Avenue and 7th Street, such as the recent remodel of the Bekins store at 735 Washington. . While the MSDDA has been dedicated to infrastructure improvements, it has also been focused on strengthening the core business district through business recruitment and skills training for current business owners. The MSDDA‘s commitment to its businesses can be seen by the extensive marketing studies that have been conducted in 2003, 2007 and 2011. Those documents serve as guidelines to help create vibrancy and to shape the Core Business District business district. Grand Haven‘s new ―streetscape‖ 6 CORE BUSINESS DISTRICT DEVELOPMENT & Before After Parking area behind the Kirby House prior to reconfiguration. Parking area behind the Kirby House after reconfiguration and new development. Before After Parking area and alley way behind Fortino‘s prior to reconfiguration. Parking area and alley way behind Fortino‘s after reconfiguration. 7 CORE BUSINESS DISTRICT DEVELOPMENT & IMPROVEMENTS Grand Haven Community Center Loutit District Library Ottawa County Court House 8 AREA DEMOGRAPHICS For more information please visit www.downtowngh.com for the Retail Market Study or contact the MSDDA office at 616-844-1188. Basic Demographic Information—Local Customer Area The following customer demographic data is based upon information contained in a series of ESRI reports generated for 5, 10 and 20 minute drive time areas originating from the center of the Grand Haven MSDDA business district. Demographic Snapshot Core Business District Grand Haven Drive Time Areas State of MI 5 Minutes 10 Minutes 20 Minutes 2010 Census 12,117 35,634 163,237 9,883,640 2011 Estimate 12,082 35,731 163,352 9,854,732 2016 Projection 12,391 36,611 165,472 9,801,082 +2.6% +2.5% +1.3% -0.5% 2010 Census 5,350 15,050 63,074 9,883,640 2011 Estimate 5,335 15,080 63,109 3,861,085 2016 Projection 5,511 15,548 64,325 3,864,336 +3.3% +3.1% +1.9% +0.1% 2010 Census 41.4 42.3 38.3 38.8 2011 Estimate 41.6 42.5 38.4 38.9 2016 Projection 42.5 43.6 39.0 39.4 2011 Estimate $42,856 $46,087 $38,906 $44,734 2016 Projection $51,632 $53,927 $46,522 $52,533 +20.5% +17.0% +19.6% +17.4% Population Change: 2011-2016 Households Change: 2011-2016 Median Age Median Household Income* Change: 2011-2016 *Median household income figures are highest at the ten-minute drive time level and exceed median household income figures reported for the State of Michigan. Median household income is expected to grow at a five-year rate ranging from 17.0% in the tenminute drive time area to 20.5% in the five-minute drive time area. Anticipated growth rates in the five– and ten-minute drive time areas outpace the 17.4% increase in median household income projected for the State of Michigan for the period from 2011-2016. Source: ESRI –Compiled from Census 2010 Summary Profile; and Demographic and Income Profile (2011 Data) Report 9 L O C A L M A R K E T S E G M E N TAT I O N Top Market Segments These market segments describe the groups of residents in the drive time areas. Of course, not every person or every family in the area fits into one of these segments, but these segments represent the largest population groups in the area. Households Market Segment 33. Midlife Junction 5 Minute Drive Time Count Percent 10 Minute Drive Time Rank Count Percent Rank 20 Minute Drive Time Count Percent Rank 1,027 17.4% 1 3,353 21.8% 1 5,157 7.7% 3 18. Cozy & Comfortable 957 16.2% 2 1,686 11.0% 2 4,985 7.5% 4 32. Rustbelt Traditions 827 14.0% 3 827 5.4% 8 7,709 11.6% 2 48. Great Expectations 674 11.4% 4 677 4.4% 9 1,016 1.5% 21 14. Prosperous Empty Nesters 583 9.8% 5 971 6.3% 4 1,620 2.4% 15 Segment 1— Midlife Junction (1,027 households, 17.4% of people in 5 minute drive time) The Midlife Junction segment lies somewhere between the child-rearing years and retirement. Households are a mix of families and singles who live alone or who share housing. Nearly half are married couple families; 31 percent are singles. Most of the labor force is still employed but approaching retirement. Approximately one-third of these residents already draw retirement income. Most still own their homes, but many have left behind home ownership responsibilities and moved into multi-unit apartment buildings. The housing market is a mix of single family homes and low density apartments, somewhere between urban and rural. The median home value is $131,464. Midlife Junction residents have a median age of 41.8 years and a median household income of $48,161. They live quiet, settled lives. They spend their money prudently and do not succumb to fads. They are comfortable shopping online or by phone. Dining out on the weekends at full service restaurants is a favorite activity; they also patronize fast food establishments. They enjoy gardening, watching television, reading books and newspapers and communicating with friends and family by e-mail. Segment 2—Cozy and Comfortable (957 households, 16.2% of people in 5 minute drive time) Cozy and Comfortable families are settled, married and still working but nearing retirement. Many couples are still living in the same pre-1970s, single family homes in which they raised their children. These houses carry a current average market value of $154,868 and are located mainly in suburban areas of the Midwest and Northeast. With a median age of 42.3 years, most of the population in this market is older than the U.S. average. The median household income is $65,665. Forty-six percent of households receive investment income and residents prefer mutual funds and consult financial planners. Employed residents work in professional, managerial and service occupations in a variety of industry sectors. They are likely to have a second mortgage and hold home equity credit lines to complete their home improvement projects. Television is more important than technology for Cozy and Comfortable residents; many households own four or more TV sets. The Golf Channel and Home and Garden Television are among their favorite channels. They own home computers, but they are content with old equipment and software. 10 L O C A L M A R K E T S E G M E N TAT I O N Top Market Segments — Continued Segment 3—Rustbelt Traditions (827 households, 14.0% of people in 5 minute drive time) Rustbelt Traditions neighborhoods are primarily a mix of married-couple families, single parents and singles who live alone. The median age is 36.7 years and the median household income is $51,378. The employed work predominantly in the service industry, manufacturing and retail trade, with about half of the employed working at white-collar jobs. Home ownership among Rustbelt Traditions is 72 percent. The median home price is $94,696 with two-thirds of families occupying homes built before 1960. These residents stay close to home; not tempted by fads, they stick to familiar products and services and shop for bargains. They will spend money on their families, yard maintenance and home improvements. These financially conservative residents prefer to bank at a credit union and have personal savings. Rustbelt Traditions families like to bowl, fish, hunt, attend car races and hockey games. They are big TV fans who subscribe to cable and tend to favor cable over network shows. They go online weekly to play games and to shop. Segment 4—Great Expectations (674 households, 11.4% of people in 5 minute drive time) These are primarily young singles who live alone and married-couple families, with a median age of 33.3 years. These residents are just beginning their careers or family lives and nearly half of them have some postsecondary education. They work primarily in the manufacturing, retail and service industry sectors, and the median household income is $40,243. About fifty percent of residents own their homes, most of which were built before 1960, and the median home value is $100,315. Great Expectations homeowners are not afraid to tackle smaller maintenance and remodeling projects, but they enjoy a young and active lifestyle. Focused on starting their careers, these residents are not saving for retirement yet, travel very little and tend to shop at major discount and department stores. They do go out to dinner and to movies and they tend to watch drama, science fiction, sports and news on TV or DVD. Segment 5—Prosperous Empty Nesters (583 households, 9.8% of people in 5 minute drive time) About 60 percent of householders in the Prosperous Empty Nesters neighborhoods are over the age of 55 and are enjoying the move from child-rearing to retirement. The median age is 48.9 years, and the population in this segment is slowly increasing. Approximately 71 percent of households earn income from wages/salaries, 59 percent receive investment income, 30 percent collect Social Security benefits and 28 percent receive retirement income, leading to a median household income of $67,295. Nearly 70 percent of this group have attended college, with 41 percent holding bachelor‘s or graduate degrees. Those residents who are still working have professional and management careers. Most of the housing in this segment is single-family with a median home value of $193,784. Prosperous Empty Nesters value their health and financial well-being. They invest in annuities, CDs, stock, mutual, money market and tax-exempt funds. They exercise and spend money on health care products. These residents have hobbies. attend sports events and volunteer for civic and charitable organizations. They travel extensively, watch news and talk programs, and read daily papers, books and business or fitness magazines. 11 R E TA I L M A R K E T P O T E N T I A L For more information please visit www.downtowngh.com for the Retail Market Study or contact the MSDDA office at 616-844-1188 Retail Market Potential The three tables on the following pages show different measures of the area‘s Retail Market Potential which helps identify segments of the retail industry that are not at full potential. The Consumer Spending Potential report for the Core Business District Grand Haven drive time areas shows 2010 estimated amounts spent on a variety of goods and services by households within these areas. Overall, the data is indicative of an attractive consumer market with spending near, at or above the national average in nearly all categories; and with exceptional strength shown, in particular, in the 5 and 10-minute drive time areas. The Leakage/Surplus Report presents a snapshot of retail opportunity. This is a measure of the relationship between supply (retail sales by businesses) and demand (consumer spending by household). A negative number represents ‗leakage‘ of retail opportunity outside of the trade area. In other words, customers from our local trade area of Grand Haven, Spring Lake and Ferrysburg are spending that much outside of our area to fulfill their demand for consumer goods and services. A positive number represents a surplus of retail sales, a market where customers are drawn in from outside the trade area. In other words, the businesses in the Grand Haven, Spring Lake and Ferrysburg area are selling more than the demand produced by residents of the area. Frequently, a leakage of sales represents a major area of opportunity for the Core Business District, but this is not always true. For example, the data indicates a large leakage for department stores, but a large department store is not a good candidate to recruit for the Core Business District area. This large leakage is probably caused by local customers shopping in department stores in the Lakes Mall area. Core Business District businesses could, however, take back some of that lost spending potential from department stores and convert it to independent specialty stores that carry department store style merchandise—clothing, shoes, housewares, etc. It is also not always true that industries showing a surplus of sales, drinking establishments for example, are past their maximum retail potential. People from areas well outside the local customer market are drawn to our lovely Core Business District for an evening out on the town. In this case, a large group of similar businesses (such as bars) create more of a draw and a bigger overall market than would just a few businesses. Adding more bars and other eating establishments will likely just continue to increase the customer base. The Sales Surplus/Leakage Factors report is another way to show the relationship between supply and demand. Categories showing the highest surplus factors may be indicative of relative strength in the market. Negative leakage factors may reveal retail opportunity outside the trade area, with the lowest values indicating possible targets for retail expansion or recruitment. The following table shows drive time estimates for some of the highest and lowest Surplus/Leakage Factors for select Retail and Food & Drink categories and subcategories at the five minute drive time level. 12 R E TA I L M A R K E T P O T E N T I A L Consumer Spending Potential The ESRI Market Profile report for the Core Business District Grand Haven drive time areas shows 2010 estimated amounts spent on a variety of goods and services by households within these areas. The Spending Potential Index represents the amount spent in the area relative to a national average of 100. The data is indicative of an attractive consumer market with spending near, at or above the national average in nearly all categories. Spending Category 5 Minutes 10 Minutes 20 Minutes Apparel & Services: Total $ $9,441,942 $26,140,004 $93,733,946 $1,595.19 $1,701.27 1,404.89 67 71 59 $1,231,417 $3,436,287 $12,216,830 $208.04 $223.64 $183.11 95 102 83 $7,325,444 $20,019,675 $70,778,162 $1,237.62 $1,302.94 $1,060.82 101 107 87 $18,500,710 $52,156,624 $184,249,640 $3,125.65 $3,394.51 $2,761.54 97 105 86 Food at Home: Total $ $25,480,079 $70,560,485 $254,265,785 Average Spent $4,304.79 $4,592.29 $3,810.94 Spending Potential Index 96 103 85 Food Away from Home: Total $ $18,313,594 $50,877,525 $182,745,682 $3,094.04 $3,311.26 $2,738.99 96 103 85 $22,481,705 $62,495,967 $220,148,721 $3,798.23 $4,067.42 $3,299.59 102 109 89 $10,120,425 $28,586,723 $100,650,357 $1,709.82 $1,860.51 $1,508.55 83 90 73 Investments: Total $ $9,793,015 $27,962,106 $92,938,400 Average Spent $1,654.50 $1,819.86 $1,392.96 95 105 80 $135,046,411 $380,612,399 $1,354,169,362 Average Spent Spending Potential Index Computers & Accessories: Total $ Average Spent Spending Potential Index Education: Total $ Average Spent Spending Potential Index Entertainment/Recreation: Total $ Average Spent Spending Potential Index Average Spent Spending Potential Index Health Care: Total $ Average Spent Spending Potential Index Household Furnishings & Equip: Total $ Average Spent Spending Potential Index Spending Potential Index Retail Goods: Total $ Source: ESRI Market Profile, 2010. Data Notes: Expenditures are shown by broad categories that are not mutually exclusive. Consumer spending does not equal business revenue. Expenditure data derived from Consumer Expenditure Surveys, Bureau of Labor. 13 R E TA I L M A R K E T P O T E N T I A L Sales Surplus & Leakage (Retail Gap) Estimates The Retail Gap represents the difference between Retail Potential and Retail Sales. A positive number represents a surplus in retail sales over what would be expected from the trade area, often indicating a market where customers are drawn in from outside the trade area. Negative values indicate areas where customers are shopping elsewhere. For example, Total Retail Trade and Food & Drink estimates for the drive times show sales surpluses ranging from approximately $85 million for the five minute drive to $141 million for the ten minute drive time. The estimates show strong retail performance across all drive time categories and are suggestive of a market region that is experiencing consistent sales to consumers residing outside of the trade area. These estimates could point to opportunities for expansion and recruitment in a variety of Retail Food and Drink categories. NAICS Code: Business Description 5 Minutes 10 Minutes 20 Minutes Surplus/(Leakage) Estimate Surplus/(Leakage) Estimate Surplus/(Leakage) Estimate 44-45, 722: Total Retail Trade and Food & Drink 85,860,749 141,881,038 85,869,420 44-45: Total Retail Trade 53,282,094 98,628,689 74,227,481 722: Total Food & Drink 32,578,655 43,252,349 11,641,939 441: Motor Vehicle & Parts Dealers 7,972,820 (14,876,243) (58,266,717) 4411: Automobile Dealers 7,460,555 (9,611,809) (64,830,225) 4412: Other Motor Vehicle Dealers 1,554,636 (56,516) 17,508,843 4413: Auto Parts, Accessories, and Tire Stores (1,042,371) 5,207,918) (10,945,335) 442: Furniture & Home Furnishings Stores (1,123,959) 3,509,565 (716,986) 4421: Furniture Stores (1,252,822) 3,246,380 361,198 128,863 263,185 (1,078,184) (1,228,366) 4,092,183) (18,051,673) 444: Building Materials, Garden Equip. & Supply 8,626,616 6,398,315 13,185,674 4441: Building Material & Supplies Dealers 9,612,153 7,766,323 5,017,788 4442: Lawn and Garden Equip. & Supplies (985,537) (1,368,008) 8,167,886 445: Food & Beverage Stores 17,758,197 59,114,344 55,517,023 4451: Grocery Stores 14,656,251 57,982,544 55,747,228 4452: Specialty Food Stores 1,558,523 906,474 1,960,009 4453: Beer, Wine and Liquor Stores 1,543,423 225,326 (2,190,214) 446/4461: Health & Personal Care Stores 2,467,693 4,001,975 6,710,156 4422: Home Furnishings Stores 443/4431: Electronics & Appliance Stores Source: ESRI Retail MarketPlace Profile, 2010. 14 R E TA I L M A R K E T P O T E N T I A L Sales Surplus & Leakage (Retail Gap) Estimates, Continued 5 Minutes 10 Minutes 20 Minutes Surplus/(Leakage) Estimate Surplus/(Leakage) Estimate Surplus/(Leakage) Estimate 20,571,005 19,464,376 77,826,061 448: Clothing and Clothing Accessories Stores 100,543 18,510,466 (2,000,578) 4481: Clothing Stores (14,447) 16,101,788 478,197 4482: Shoe Stores (286,549) 1,467,785 (747,903) 401,539 940,893 (1,730,872) 3,276,243 7,008,254 (1,887,541) 203,489 3,613,390 294,074 3,072,754 3,394,864 (2,181,615) (4,373,568) (2,994,778) 7,664,308 87,350 19,295,555 11,862,770 (4,460,918) (22,290,222) (4,198,462) 2,063,103 3,836,312 1,164,391 4531: Florists 156,410 166,580 524,772 4532: Office Supplies, Stationery & Gift Stores 902,416 856,062 (682,866) 4533: Used Merchandise Stores 278,326 468,669 211,113 4539: Other Miscellaneous Store Retailers 725,951 2,345,001 1,111,372 (2,828,233) (1,251,714) (6,916,637) (601,649) (1,896,374) (2,291,247) 4542: Vending Machine Operators (1,595,582) 2,534,022 436,782 4543: Direct Selling Establishments (631,002) (1,889,362) (5,062,172) 7221: Full-Service Restaurants 19,098,140 17,608,160 6,436,671 7222: Limited-Service Restaurants 13,200,891 27,083,677 10,428,518 833,566 707,568 (680,327) NAICS Code: Business Description 447/4471: Gasoline Stations 4483: Jewelry, Luggage & Leather Goods Stores 451: Sporting Goods, Hobby, Book & Music Stores 4511: Sporting Goods/Hobby/Musical Instruments 4512: Book, Periodical, and Music Stores 452: General Merchandise Stores 4521: Department Stores (Excluding Leased Depts.) 4529: Other General Merchandise Stores 453: Miscellaneous Store Retailers 454: Nonstore Retailers 4541: Electronic Shopping and Mail-Order Houses 7224: Drinking Places Source: ESRI Retail MarketPlace Profile, 2010. 15 R E TA I L M A R K E T P O T E N T I A L Sales Surplus/Leakage Factors Sales Surplus/Leakage Factors also present a snapshot of retail opportunity. This is a measure of the relationship between supply and demand that ranges from +100 (total surplus) to –100 (total leakage). A positive value represents a surplus of retail sales over what is expected from the local area (often indicative of a market where customers are drawn in from outside the trade area). Categories showing the highest surplus factors may be indicative of relative strength in the market. Negative leakage factors may reveal retail opportunity outside the trade area, with the lowest values indicating possible targets for retail expansion or recruitment. The following table shows drive time estimates for some of the highest and lowest Surplus/Leakage Factors for select Retail and Food & Drink categories and subcategories at the five minute drive time level. Sales Surplus/Leakage Factors—Select Categories 5 Minutes NAICS Code: Business Description 10 Minutes 20 Minutes Factor # Biz Factor # Biz Factor # Biz Drinking Places—Alcoholic Beverages (NAICS 7224) 64.4 3 32.6 5 (7.7) 30 Book, Periodical, and Music Stores (NAICS 4512) 62.4 2 40.0 6 (14.0) 8 Building Material & Supplies Dealers (NAICS 4441) 53.9 10 24.6 24 5.7 65 Used Merchandise Stores (NAICS 4533) 52.3 13 38.3 22 5.5 50 Full-Service Restaurants (NAICS 7221) 47.0 44 23.0 70 3.1 204 Limited-Service Eating Places (NAICS 7222) 42.5 27 35.1 53 5.3 122 Florists (NAICS 4531) 36.8 2 16.4 5 11.5 16 Specialty Food Stores (NAICS 4481) 35.5 4 11.1 7 10.8 21 Beer, Wine & Liquor Stores (NAICS 446/4453) 33.6 4 2.8 5 (14.0) 11 Clothing Stores (NAICS 4481) (0.2) 11 48.2 41 0.7 83 Lawn & Garden Equip. & Supplies Stores (NAICS 4442) (79.0) 1 (29.6) 6 38.0 30 Shoe Stores (NAICS 4482) (42.6) 1 35.3 8 (8.0) 14 Furniture Stores (NAICS 4421) (32.2) 4 18.2 7 0.7 18 Other General Merchandise Stores (NAICS 4529) (24.7) 2 (51.5) 3 (1.5) 38 Special Food Services (NAICS 7223) (19.3) 5 (30.3) 7 (19,9) 23 Electronics & Appliance Stores (NAICS 443/4431) (16.2) 11 (20.2) 20 (30.2) 65 Clothing Stores (NAICS 4481) (0.2) 11 48.2 41 0.7 83 Data Source: ESRI Retail MarketPlace Profile, 2010 16 R E TA I L M A R K E T P O T E N T I A L TA R G E T B U S I N E S S E S The data and findings suggest that opportunities and strategies to increase core business district market share might be focused in four areas: 1. Local, client and convenience-oriented marketing and business development strategies which appeal to characteristics and traits common to the Midlife Junction, Cozy & Comfortable, Rustbelt Traditions, Great Expectations and Prosperous Empty Nesters tapestry market segments dominating the five minute drive time area. These strategies are likely to emphasize local personalities, hometown customer service, local traditions and convenience. 2. Extending regional reach through intentional marketing, messages and events specifically designed to appeal to the lifestyle characteristics of the aforementioned segments and possibly with particular emphasis on characteristics associated with the Green Acres tapestry market segment which, cumulatively then, represent about 57% to 42% of 10 and 20 minute drive time area households, respectively. 3. Capitalizing on existing and evolving core business district business niches which offer particular appeal for targeted tapestry lifestyle consumer segments. 4. Continuing marketing efforts to attract visitors from outside the drive time areas. These efforts and related messages are most likely to emphasize the day trip experience; business niches and impulse retail clusters with high appeal for visitors and tourists; recreational attractions and opportunities; and evening dining and entertainment options. Analysis of retail data and sales surplus & leakage estimates reveals areas of retail strength and other areas that might represent prime opportunities for expansion and/or complementary product and services lines. Retail categories and subcategories which, based strictly on the analysis of ESRI Retail MarketPlace report data, appear to be areas of relative strength in the community and/or core business district include: ►Drinking Places ► Book, Periodical and Music Stores ►Full Service Restaurants ►Limited Service Eating Places ► Florists ► Specialty Food Stores ► Beer, Wine and Liquor Stores Retail categories, subcategories and product lines which, based solely on the analysis of ESRI data, might represent some of the best and most immediate opportunities for growth and expansion include: ►Electronic and Appliance Stores ►Furniture Stores ►Shoe Stores ►Lawn & Garden Equipment and Supply Stores. Ideas and suggestions offered by focus group participants for desired retail business types and concepts and for new and expanded retail business types identified as having the best chance to succeed in Grand Haven‘s core business district , could offer additional insight and direction for ―top prospects.‖ The list includes: ►Restaurants ►Kitchen Gadgets ►Spices ►Clothing (Men‘s and Women‘s) ►Outfitter/Sports Clothing/Recreational Equipment ►Department Store ►Boutique Hotel ►Hardware ►Drug Store ►Skate/Surf/Swim Shop ►Grocery and ►Video Arcade/Gaming 17 18 G R A N D H AV E N M A I N S T R E E T DOWNTOWN DEVELOPMENT AUTHORITY (MSDDA) SERVICES The MSDDA‘s mission is to enhance a vibrant historic business district through community efforts and public/private partnerships. The MSDDA offers a variety of services and opportunities to businesses within the core business district: Workshops, seminars and training Customer service training Shoplifting prevention training Small business financial management Marketing and Advertising workshop Employee Management training Others available upon request Business referrals Business promotion District-wide special events Site selection-location assistance Representation to local and regional policy makers Networking opportunities 19 CHAMBER OF COMMERCE G R A N D H AV E N , S P R I N G L A K E & FERRYSBURG SERVICES Some of the services the Chamber offers its members include: Training and seminar discounts Human resources information Training needs assessments Workshops & seminars Customer service training program Business referrals Resource matching Business promotion Site selection-location assistance Legislative liaison Early Bird Breakfasts Monthly B*A*S*H (Business After Standard Hours) Chamber Leads Networking Groups Contact the Chamber of Commerce, Grand Haven, Spring Lake and Ferrysburg at 616-842-4910 for additional programs and services that may be available to you. 20 MICHIGAN SMALL BUSINESS & TECHNOLOGY DEVELOPMENT CENTER RESOURCES Small Business Readiness Assessment Tool Guide to Starting a Small Business Sample Business Plans Information Resources SCORE: “Counselors to America’s Small Business” Counseling *These resources and more can be accessed by contacting the Michigan Small Business & Technology Development Center (MISBTDC) located in Grand Valley State University at 616-331-5000 or by visiting http://www.gvsu.edu/misbtdc/. Additional business information can be accessed through the Loutit District Library. 407 Columbus Street Grand Haven, MI 49417 616-842-5560 www.loutitlibrary.org 21 FUNDING SOURCES Commercial Real Estate Loan (Owner Occupied) Typically 5 year term with a 15-20 year amortization Lender will generally finance 80-85% of purchase price or appraised value Appraisals required for loan amounts exceeding $250,000 1.3x Cash Flow Coverage requirement Commercial Real Estate Loan (Non-owner Occupied) Typically 5 year term with 15-20 year amortization Lender will generally finance 65-75% of purchase price or appraised value Appraisals required for loan amounts exceeding $250,000 Government The US Small Business Administration (SBA) provides loan guarantees under its 8(a), 504, 7(a) and Low-Doc Programs. These programs are administered through regulated financial institutions or community development corporations (CDCs). The Chamber of Commerce Grand Haven, Spring Lake, Ferrysburg acts as an SBA 504 loan packaging and servicing agent for the West Michigan Lakeshore Certified Development Company. This SBA program is an economic development tool designed to assist small businesses in expanding their business by providing fixed asset financing that has a fixed rate and is long term. The program requires that one job be retained and/or created for every $65,000 loaned through the SBA 504 financing program. For profit small businesses are eligible for this program. The maximum loan available is $1.5 million or 40% of the total project, whichever is less. The SBA takes a second position behind the bank. Economic Development Corporation (EDC) Loans Term Loans A loan with an established term and payoff schedule, used for a specific, one time purpose Use for capital purchases, including: City of Grand Haven EDC Revolving Loan Fund Gap Financing (Low interest gap financing to assist City of GH businesses obtain loans that do not meet traditional bank lending guidelines.) Property improvements/expansions Equipment or automobile purchases Community Development Block Grant (CDBG) Debt restructuring The CDBG program is a federally-funded program dating back to 1974. The program is designed to provide eligible local units of government with grants to assist low and moderate income people, eliminate slum and blight or meet an urgent need. Business acquisition Permanent working capital Business Credit Line A revolving line of credit for small business customers to help them manage their cash flow. Ideal for businesses with short term and seasonal needs to: Grants are awarded to address: Economic development infrastructure to facilitate business locations/expansions Core Business Districts and gateways infrastructure Purchase inventory Economic development planning grants Carry account receivables Public works public infrastructure grants for low/mod communities Fulfill seasonal needs Provide Working Capital Meet Payroll Unique innovative project needs Contact David Miller at the Chamber of Commerce for additional information about these and other financing options. 22 FUNDING SOURCES Yourself: Personal assets may be used to capitalize your business. Savings, retirement funds or the sale of assets (e.g. garage sales, pawn shops) and investments may be sources of financing. Borrowing against the equity in your home or using consumer credit cards are possibilities, too. There are risks involved with borrowing against home equity, which should be carefully weighed with the assistance of a qualified professional. Family & Friends: Friends and/or family members may loan you money to start your business OR they may invest their personal savings or other assets in your business. Terms of the loan or the investment agreement should be decided in advance and should be documented. Suppliers: Businesses that supply your business with inventory and supplies may be willing to extend you credit. Generally, inventory or supplies are delivered to you under the agreement that you will pay the supplier in 30 to 60 days. As a new venture business without a track record, however, this will be an extremely difficult source to secure unless you have had a good prior working relationship with the supplier. Regulated Financial Institutions: Regulated Financial Institutions (banks and credit unions) provide a variety of financial services to individuals and small businesses including lines of credit, term loans and mortgages. New venture financing is primarily based on the borrower's ability to repay the loan. As the business grows, personal assets and financing will still be heavily considered, but the bank will begin to rely more on the business's ability to generate revenue for payments. Your loan proposal will be evaluated on your: Relationship with them Management Ability Collateral Owner's equity Cash Flow Credit history Venture Capitalists: Venture Capitalists provide equity investments to businesses experiencing rapid growth -- 50% per year or more and revenues of $20-50 million in 5 to 7 years. In addition to firm ownership, venture capitalists will also want management input in the form of board seats or executive positions. Investors: Investors or Angels contribute capital to your business in return for partial ownership or debt repayment. They may or may not participate in the management of the business. Financing can take many forms from a simple partnership or debt financing to a public or private stock offering. Usually the investor/shareholder shares in the distribution of earnings, called "draws" in a partnership or "dividends" in a corporation. The amount of the distribution earned by the investor is related to the percentage ownership or the number of shares held. Seek advice from a CPA or other financial professional when considering this type of financing assistance. Source: Michigan Small Business and Technology Development Center 23 FUNDING SOURCES Area Banking Institutions National City Bank 1101 Robbins Road Grand Haven, MI 49417 616.846.3555 Michigan Commerce Bank* 333 Washington Ave Grand Haven, MI 49417 616.846.1930 Chase Bank* 300 Washington Ave. Grand Haven, MI 49417 616.847.3247 Huntington Bank 1300 South Beacon Blvd Grand Haven, MI 49417 616.846.0336 Chemical Bank 1600 South Beacon Blvd Grand Haven, MI 49417 616.846.5800 Macatawa Bank 15135 Whittaker Way Grand Haven, MI 49417 616.847.3740 Comerica Bank 1102 Robbins Road Grand Haven, MI 49417 616.846.1523 Lake Michigan Credit Union 951 Jackson Street Grand Haven, MI 49417 616.242.9790 Community Shores Bank 15190 Newington Dr Ste 300 Grand Haven, MI 49417 616.844.5600 Lake Trust Credit Union 17350 Robbins Road Grand Haven, MI 49417 616.842.3410 Fifth Third Bank * 233 Washington Ave Grand Haven, MI 49417 616.847.2221 Nu Union Credit Union 16916 Robbins Road 616.842.3410 Fifth Third Bank 839 Robbins Road Grand Haven, MI 49417 616.847.2337 Tri-Cities Credit Union 905 Pennoyer Ave. Grand Haven, MI 49417 616.842.6320 Flagstar Bank* 22 South Harbor Drive Grand Haven, MI 49417 616.604.1928 * Located within the Core Business District. 24 FAQ Where can I obtain DDA District information on market saturation, competitive businesses in the area, and community demographics? Grand Haven MSDDA 616-844-1188 and/or The Chamber of Commerce Economic Development Office 616-846-3153 Who can assist me in determining where in the DDA District it makes sense to locate my business? Grand Haven MSDDA 616-844-1188 Who should I contact for a listing of available properties for lease or purchase in the DDA District? Grand Haven MSDDA 616-844-1188 and/or The Chamber of Commerce Economic Development Office 616-846-3153 Where can I obtain property tax information on properties I might be interested in? City of Grand Haven City Treasurer 616-842-3210 Who can provide building code, zoning, and other City ordinance and procedure information? City of Grand Haven Building & Planning Department 616-847-3490 Grand Haven‘s Zoning Ordinance can be found on the City‘s website: www.grandhaven.org under the City Services heading Where can I get assistance in evaluating zoning, permitting, and building code requirements, including questions on ADA compliance, before purchasing/leasing a new location or expanding/ remodeling on site? To avoid unanticipated requirement surprises, the City‘s Building & Planning Department should be contacted prior to purchasing property or making any changes. The Building Inspector is available to help ensure that you are aware of building and zoning code requirements before finalizing your plans. City of Grand Haven Building & Planning Department 616-847-3490 Who can provide information on permits required for signage, outdoor cafes, overnight parking, and liquor licenses, etc? Signage & Outdoor cafes: Overnight Parking: Liquor Licenses: City of Grand Haven Building & Planning Department 616-847-3490 City of Grand Haven City Clerk‘s Office 616-847-4886 City of Grand Haven Public Safety Department 616-842-3460 25 FAQ When do I need to get a permit for repairing, remodeling, and/or expanding my business space? Repairing or Replacing: Siding or trim, more than 100 sf. Missing shingles, more than 25% of roof area. Foundation walls. Roofing or re-roofing 200 sf or more. Replacing interior wall coverings (not including wallpapering or painting) Replacing or installing: New handrails and guardrails. New walls within a building, including in a basement or garage. A new window when it includes the frame. A new door when it includes the frame. A garage overhead door when it includes the frame. Replacing or building a new deck, stoop, or stairs. Remodeling a room. Adding a new addition. Building a new building or accessory building over 200 sf (garage, shed). Pouring a concrete driveway. Building or installing a swimming pool in ground or above. Building a fence over 6 feet high. If in doubt, check with: City of Grand Haven Building & Planning Department 616-847-3490 Who can provide assistance in determining the best legal form (LLC, partnership, etc.) for my new business? The Chamber of Commerce can direct you to the appropriate source, depending upon your specific circumstances: The Chamber of Commerce Economic Development Office 616-846-3153 Where can I get assistance in formulating a sound business plan? The Chamber of Commerce Economic Development Office 616-846-3153 Who can provide information on financing options and economic incentive for businesses located in the DDA District? Grand Haven MSDDA 616-844-1188 and/or The Chamber of Commerce Economic Development Office 616-846-3153 26 FAQ Who do I contact for information on the cost of and access to electricity and sewer/water? Electricity: Grand Haven Board of Light & Power (BLP) 616-846-6250 Sewer/Water: North Ottawa Water System (NOWS) 616-847-3488 Do I need to register my business with the City of Grand Haven? Yes. Contact: City of Grand Haven Building & Planning Department 616-847-3490 27 EMPLOYMENT/ECONOMIC C L I M AT E For up to date information regarding the Grand Haven area employment climate and economic data please visit http://www.upjohninstitute.org/regional/index.htm 28 C I T Y O F G R A N D H AV E N TA X OVERVIEW City of Grand Haven 519 Washington Avenue Grand Haven, MI 49417 616-842-3210 Budget for Fiscal Year July 1, 2011 through June 30, 2012 Property Tax Rate and Millage Levy Operating Levies 2010-2011 2011-2012 Increase (Decrease) Undesignated 9.6914 9.6314 -0.0600 Streets Program 0.8500 0.8500 0.0000 0 0 0.0000 NOCCOA Senior Activities 0.2497 0.2497 0.0000 Tri Cities Museum 0.2454 0.2454 0.0000 Public Transportation 0.5700 0.6000 0.0300 Community Center (voted) 0.7500 0.7800 0.0300 Infrastructure Debt Service 1.0000 1.0000 0.0000 Total Levy 13.3565 13.3565 0.0000 CBDDA Millage 1.8448 1.8448 0.0000 Total Levy for properties in DDA 15.2013 15.2013 0.0000 Capital Improvements Additional Voted Millage 29 U T I L I T Y I N F O R M AT I O N Electric Grand Haven Board of Light and Power 616-846-6250 www.ghblp.org Waste Service Allied Waste 877-698-7274 www.disposal.com Gas Michigan Gas Utilities 616-844-7511 www.michigangasutilities.com Waste Management 800-796-9696 www.wm.com Water City of Grand Haven 616-842-3210 www.grandhaven.org Arrowaste, Inc. 616-748-1955 www.arrowaste.com Sewer City of Grand Haven 616-842-3210 www.grandhaven.org Telephone/Internet Charter Communications 877-728-3126 www.chartercommunications.com Azulstar 616-842-2763 www.azulstar.com TDS 877-208-5111 www.tds.com AT&T 888-944-0447 www.att.com 30 AVA I L A B L E P R O P E R T I E S Please contact these offices for available property listings. Commercial Real Estate Brokers Anchor Realty 231.759.7727 Capstone Real Estate 616.847.1031 Coldwell Banker Woodland Schmidt 616.850.1121 Encore Market Realty Advisors 616.638.8844 Greenridge Realty 616.935.3500 Grubb & Ellis 616.744.3500 Prudential Clyde Hendrick 616.842.5670 ReMax of the Lakeshore 616.638.3900 Signature Associates 231.578.2508 S.J. Wisniewski 616.846.0620 31 C O N TA C T S THOSE READY TO SERVE YOU Grand Haven Main Street Core Business District Development Authority (MSDDA) Contact: Dana Kollewehr, Director 20 N. 5th Street Grand Haven, MI 49417 616.844.1188 616.844.1921 (Fax) dana@Core Business Districtgrandhaven.com www.Core Business Districtgh.com Chamber of Commerce Grand Haven, Spring Lake, Ferrysburg Economic Development Contact: David Miller One South Harbor Drive Grand Haven, MI 49417 616.846.3153 616.842.0379 (Fax) [email protected] www.grandhavenchamber.org City of Grand Haven Contact: Pat McGinnis, City Manager 519 Washington Avenue Grand Haven, MI 49417 616.847.4888 616.842.0085 (Fax) [email protected] www.grandhaven.org City of Grand Haven Building and Planning Department Contact: Sam Janson 20 North 5th Street Grand Haven, MI 49417 616.847.3490 616.844.2051 (Fax) [email protected] www.grandhaven.org 32 CITY TIMELINES FOR PLANNING D E PA R T M E N T 33 CITY TIMELINES FOR PLANNING D E PA R T M E N T 34 CITY TIMELINES FOR PLANNING D E PA R T M E N T 35 CITY TIMELINES FOR PLANNING D E PA R T M E N T 36 CITY TIMELINES FOR PLANNING D E PA R T M E N T 37 CITY TIMELINES FOR PLANNING D E PA R T M E N T 38 CITY TIMELINES FOR PLANNING D E PA R T M E N T 39 CITY TIMELINES FOR PLANNING D E PA R T M E N T 40 CALENDAR OF MSDDA EVENTS SPONSORSHIP & VOLUNTEER I N F O R M AT I O N 2013–2014 MSDDA Events: January: Wine about Winter February: Frozen in Time End of February– Early March: Grand Haven Restaurant Week March: Girlfriend‘s Weekend August: Sidewalk Sales Mid-September—Early October: ArtWalk September: Indie Rock Music Festival October: Trick-or-Treating November: Light Night November: Small Business Saturday If you are interested in being a sponsor for an event this year, please contact Dana Kollewehr, Director of Grand Haven MSDDA, at 616-844-1188 or e-mail her at [email protected]. To volunteer for an event, please see the link to our on-line volunteer application on the Grand Haven MSDDA home page. Click on the ―Volunteer‖ link on our home page, and the volunteer application link will be on the left side of the page. 41