Economic Restructuring Defined (Part 1)

By Dace Koenigsknecht
Economic Restructuring Specialist
Michigan Main Street Center
Michigan State Housing Development Authority

We, here at the Michigan Main Street Center, have been extremely busy this summer creating and refining training presentations for this upcoming year. This has been a valuable exercise in organization, and has enabled me a chance to define more clearly this point called Economic Restructuring.

At the mere mention of the words, Economic Restructuring, the eyes of the non-Main Street person instantly glaze over. Coworkers sympathize that I have the hardest of the 4-Points to understand, and they are grateful that it is not them that has to do so. I have heard the sighs and felt the frustration with regards to wrapping the mind around this amorphous cloud. What follows is the beginning of my outline:

Downtown Monitoring

The components that follow (in subsequent posts) flow from an understanding of, and constant monitoring of, the commercial district. As much market study as education, this observing and documenting enables identification of nuances and niches within the district.

1. Baseline Assessment: In order to identify changes in the district, whether positive or negative, a baseline needs to be established. We assist our new Select Level communities with this process; actually spending a few days in the community touring, interviewing, and documenting the current state of the commercial district. However, such a process can be completed by anyone with the time and interest.

a. It is important to gather and review any previous market studies performed; whether specific to the commercial district or more general to the community as a whole. If possible, collect the market studies of district businesses, especially if they were completed in the near past. Also include nearby franchise and chain stores in your search, as they often require such a document as part of their startup procedures.

b. The next step is to gather all the previous plans that are available; Master or Comprehensive Plan, Downtown Development Plan, Planning and Zoning Maps, etc.. This should be easy, as they usually end up on the dusty shelf in your local planning office. Find that shelf, and you will uncover a plethora of time and knowledge within those tomes.

c. Finally, in regards to the background information necessary to create a baseline, gather relevant census data – both demographic and retail trade. The former is readily available from census.gov, and most people are familiar with what the census is and the type of information available within it. The Census of the Retail Trade is similar in that is collect basic information on businesses engaged in some form of retail: from computers and office supplies, to ladies blouses and household merchandise. This report entails monthly survey results and annual aggregations, and offers the national perspective of retail health in order to baseline your commercial district health.

The next part of Downtown Monitoring, the Current Economic Condition, will follow in my next post (Economic Restructuring Defined: Part I.b). I have attempted to create as complete an outline as possible, so the content of the five sub-points within will exceed space in this current blog.

Feel free to add your thoughts regarding this topic below…