Incentives Questions Answered

Last month Buxton presented a webcast on Using Incentives to Achieve your Retail Goals. We would like to share some of the questions and answers on incentives and TIFS that were given during that webcast. To view a recording of this event, click here. We hosted a webcast yesterday with Governing Magazine that is available as a recording by clicking here.

Question:	Are there effective incentives for assisting “Mom n’ Pop” businesses?
Answer:	Many communities have small business development programs that provide, among other things, incubators, business counseling, and incentives to aid in the establishment or expansion of small businesses. Typically, these programs are available to any small business that qualifies and not just limited to retail.
Question:	Once you start using incentives, how do you stop?
Answer:	Incentives are tough policy decisions for any city. When to use them, how to use them and when not use them should be part of the policy discussion and deliberation. An exit strategy can also be part of the policy decision.
Question:	What incentives are best used for redevelopment projects where existing infrastructure is adequate and in good condition?
Answer:	There are two broad classes of incentives: those that reduce capital costs and those that reduce operation costs. There is a trend for cities to favor incentives that reduce capital cost such as reductions in or exemptions from permit and impact fees, land acquisition assistance and building construction costs. Read More Q&A

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Achieving the Next Level of Retail

Retailers want to be in California. Despite higher land prices, wage issues and many more complications on the west coast – retailers also have a customer base that warrants a concept. So, how do communities become choosy in the retail dating game when they have a lot of prospects?

1. Understand basic economic indicators of your supply and demand or leakage for your trade area. Market leakage indicators are a good guide; however, leakage reports are not set in stone. For example, just because you may have a “supply” of home supply products doesn’t mean you don’t warrant another home supply store in fact you may be the regional draw for these products and be retaining some of the market from surrounding trade areas. Conversely, if you are undersupplied their may be market cannibalization factors at play that don’t allow for a home supply retailer in your trade area.
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