Revitalizing downtowns has become an economic development strategy for most communities in the past 15 years. Once the hub of economic, civic and social activity for the city and often the county, downtowns declined as businesses followed their customer base to outlying areas.

Well-meaning community leaders tend to view retail as the key to downtown revitalization. A lesson learned from working with dozens of municipalities, from small rural towns to metropolitan cities, is that retail has a role in the redevelopment plan, but retail alone will not drive the process.

The real key to downtown revitalization is a strong commitment to luring private investment. There is no mystery to attracting private dollars. The pre-condition for private-sector attraction is public investment in infrastructure. Such investments include adequate or even expanded parking, improved sidewalks, facade and building upgrades, security, beautification and cleanliness.

Adequate infrastructure will help entice retailers to a downtown area, but it may not be enough. To get retailers to make investments downtown, you must demonstrate that you have a critical mass of customers and the on-going commitment to expand the consumer base.

A starting point to creating critical mass downtown is to determine the current concentration and characteristics of the households in the trade area. This analysis should take into account day-time as well as night-time populations. Solid consumer expenditure data will reveal the retail potential for specific types of retailers and restaurants. Civic leaders can use this knowledge to create appropriate marketing and development strategies for the trade area.

To develop and grow sustainable downtown customer bases, aggressive communities are undertaking activities in these areas:

• Employment. Continuing to focus on business development programs that increase jobs and job opportunities in downtown.
  
• Entertainment. Conducting events in downtown such as art exhibits, music performances and festivals that draw local as well as surrounding crowds to downtown.
  
• Culture. Encouraging new and existing facilities such as arenas, stadiums, museums and historical buildings that attract visitors.
  
• Residential and Lodging. Developing both residential and transit housing as part of the revitalization efforts.
  
• Incentives. Developing incentive policies such as abatements, sales tax rebates and low-interest loan programs help to minimize the risk a new business might incur in a downtown location.
  
• Marketing. Communicating the plans and progress being made in downtowns is vital to re-positioning it as a viable place to make investments, shop, live and work.