rickey hayes economic development consultant
TRANSCRIPT
Rickey Hayes
Economic Development Consultant
www.retailattractions.com
Every city has retail leakage
New retail growth is good for your community
43,299 other cities are after the same thing
Current economy and development philosophy makes incentives part of development process
www.retailattractions.com
Five years ago….62%
TODAY….89% of all retail growth in the local setting has some type of incentive.
www.retailattractions.com
Five years ago…
39% Tax Exemptions or Abatements
38% Waiver of Fees
37% Sales Tax Rebates
24% Tax Credits
24% Grants
22% Loans/Loan Guarantees
www.retailattractions.com
Washington, D.C. Supermarket in
553,000 Population Underserved Areas
Incentive Package
1. Construction materials and equipment exempted from sales tax
2. License fees exempted
3. Personal and property taxes exempted for 10 years
www.retailattractions.com
First Ring Suburb Restaurants
50,000 Population Over 5,000 Sq Ft
No Drive-Thru
Incentive Package
City property tax abatement
30% for 5 years
www.retailattractions.com
Suburban City Downtown Retail
202,000 Population District Projects
Incentive Package
All building and permit fees
up to 2% of construction cost
www.retailattractions.com
Near Metro City Excessive
47,000 Population Leakage
Incentive Package
Retailer investing $5 million or more,
With annual sales of $30 million or more
50% rebate of city sales taxes for 5 years
And rebate of all development fees
www.retailattractions.com
Stand Alone City Upgrade Older
35,000 Population Mall
Incentive Package
A tax credit against the company’s state tax liability of up to 10% of a qualified capital
investment.
www.retailattractions.com
Suburban City Facade Upgrades
32,000 Population Downtown
Incentive Package
Grants of 75% of cost
Up to $4,000 maximum
www.retailattractions.com
Metropolitan City Downtown Building
102,000 Population Improvement Loans
Incentive Package
Direct loan of up to $50,000
At below market interest rate
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What are you trying to accomplish
Define who is eligible and how much
Across the board / deal by deal
Performance standards/contract
Monitoring/penalties policies
Cost/benefit and rate of return analysis
www.retailattractions.com
What can cities do?
Assemble land for development
Provide public infrastructure
Make the development process as pain-free and efficient as possible
Develop innovative incentives
Improve internal development processes
www.retailattractions.com
Maximize your city’s strengths and minimize the weaknesses
Know what sites are available and pricing for those sites
Know what incentives your city is willing to use and what you can get approved
www.retailattractions.com
Clear and concise presentation
Current information
Verifiable information
Reputable third party source
Reasonable/justifiable trade area
www.retailattractions.com
Know how to work with:
◦ Site selectors
◦ Brokers
◦ Developers
◦ Leasing agents
◦ Retailers
Smooth development process produces positive outcome
Do what you say you will do
www.retailattractions.com
Brand your city to reflect where you are going, not where you have been
Modern logo
Progressive website
Effective marketing materials
www.retailattractions.com
Only the city can “pull the trigger” on development projects (not the Chamber or any other organization)
Make your city one that is known for “getting things done”
Smooth decision making process is integral to growth and development
www.retailattractions.com
Utilize public/private partnerships
Know your city and sites
Clear, concise demographics
Streamline development process
Strong marketing position
Own your development efforts
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This presentation can be found at
www.retailattractions.com
Rickey Hayes
Economic Development Consultant