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Downtown expert sees hope ... if changes are made
By Cindy Iutzi/Gate City Staff Writer
In times of economic boom or bust, downtowns have always been resilient, Kennedy Smith said Thursday at a Keokuk Rotary Club meeting.
Smith is a nationally recognized expert on commercial district revitalization and development, all things about Main Street business and sound communities.
“Downtowns were built before cars and are adaptable,” she said. “Downtown buildings have housed businesses, entertainment, churches and housing.”
She sees hope for the resurgence of Main Street, but changes will have to be made.
“Shopping malls are dying now,” Smith said. “We have built more commercial space than we need.”
Americans have 40 square feet of commercial space per person compared to the next highest - nine square feet in Japan. The worldwide average is four square feet per person.
In the United States, communities' 50-mile shopping influence overlaps to the extent that “communities are cannibalizing themselves,” Smith explained.
Smith started seeing business move from downtown to west of town in the 1960s and 1970s when several independent and parallel trends emerged.
Euclidean zoning, a way to “separate noxious fumes from residential areas, became popular, leading to the development of communities in separate areas connected by roads.”
The State Highway Act of 1956 brought about four-lane highways that made it easier for people to travel longer distances.
The G.I. Bill financed new subdivisions on the peripheries of communities.
More automobiles were available.
Accelerated depreciation provided a tax incentive that encouraged businesses to buy new assets.
The advent of air-conditioning allowed large buildings to be climate controlled.
“People began moving far away from town centers, and as they did, retail (grocery stores, fast food and other conveniences) did, too,” Smith said.
New, enclosed regional shopping malls were established and housed large retail chain stores. The national chains could sell the same type of product everywhere, “a major transformation in retail,” she said. “Chain stores exploded.”
In the 1970s and 1980s big box stores like Wal-Mart transformed distribution practices.
Many Main Street stores closed, and in their eagerness to compete with box stores and shopping malls, downtowns refurbished by tearing down buildings thought to be unusable, and lost historic buildings along the way.
However, trends are shifting again and downtown has an opportunity to come back, Smith believes.
The economic downturn makes it difficult for suppliers troubled by the credit crunch to supply inventory to retailers. Smith predicted that more Americans will have less money available for discretionary spending and less for luxury items.
“More national retailers will close and consolidate,” she said. "Discount stores will remain stable, but will cut down on expansion plans. As national retailers close, there will be more opportunity for locally owned businesses to absorb those sales.”
Small stores have the opportunity to go national and global via the Internet. Smith said Hartt Apparel, Main Street, Keokuk is a prime example of using the Internet as a sales tool. Hartt Apparel does about 75 percent of its business on its Web site.
Demand for some products and services will grow, with “green products” likely to be permanent.
She predicted several scenarios:
Used merchandise, consignments and auction business will increase as people embrace the need to recycle, she said.
Also, fuel efficient cars are growing in popularity and people are conscious of how much they spend on fuel.
“Given the option, people will be more likely to shop downtown than they have been since the 1960s,” she said.
More people will live downtown anytime since the 1940s.
Loft apartments and downtown apartments eliminate yard work and allow people to walk to work.
Smith recommends focusing on clear economic goals for downtown while simultaneously working on design, organization, promotion and economic restructuring, with market-based strategies intersecting them all.
“Create local investment groups,” she advised. “We could wait for years before the right business comes here. Let's just raise the money and create it here.”
Using the community-owned Green Bay Packers as an example, Smith suggested creating local and regional equity funds, selling shares of small scale industries to the community.
“Actively encourage multiple uses, emphasize small town industry that employs 15-20 people,” she said.
Decker Manufacturing in Keokuk is an example of that model.
“Demand good design across the board,” she added. “We need to expect new development to look like the rest of downtown.”
With that in mind she said “form based code” zoning should replace euclidean zoning to “make downtown more fun” with independent businesses and quirky, unexpected things.
Create tools and resources to help strengthen independent businesses and retailers - the same tools that national chains have.
Develop multiple distribution channels such as Internet and store-to-store marketing.
Provide outstanding Internet service.
Understand that “historic preservation is the greenest development that exists. Downtown buildings were built to be green before there were air-conditioners. They have retractable awnings, ceiling fans with high ceilings, transom light, are deep and narrow and have operable windows for more air circulation."
Couple modern technology and materials with historic buildings to obtain the best of both worlds.
Be skilled and aggressive in using federal and state financing tools to stimulate downtown development.
Stop using the chicken and egg mentality, such as, ‘It would be great to have downtown parking but we have to have more parking.”
“Keokuk has been doing it for years,” she said. “It's time to take a big step.”
She reminded the group of the saying, “If we do not change direction, we're likely to get where we're headed.”
Smith is a nationally recognized expert on commercial district revitalization and development, all things about Main Street business and sound communities.
“Downtowns were built before cars and are adaptable,” she said. “Downtown buildings have housed businesses, entertainment, churches and housing.”
She sees hope for the resurgence of Main Street, but changes will have to be made.
“Shopping malls are dying now,” Smith said. “We have built more commercial space than we need.”
Americans have 40 square feet of commercial space per person compared to the next highest - nine square feet in Japan. The worldwide average is four square feet per person.
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Smith started seeing business move from downtown to west of town in the 1960s and 1970s when several independent and parallel trends emerged.
Euclidean zoning, a way to “separate noxious fumes from residential areas, became popular, leading to the development of communities in separate areas connected by roads.”
The State Highway Act of 1956 brought about four-lane highways that made it easier for people to travel longer distances.
The G.I. Bill financed new subdivisions on the peripheries of communities.
More automobiles were available.
Accelerated depreciation provided a tax incentive that encouraged businesses to buy new assets.
The advent of air-conditioning allowed large buildings to be climate controlled.
“People began moving far away from town centers, and as they did, retail (grocery stores, fast food and other conveniences) did, too,” Smith said.
New, enclosed regional shopping malls were established and housed large retail chain stores. The national chains could sell the same type of product everywhere, “a major transformation in retail,” she said. “Chain stores exploded.”
In the 1970s and 1980s big box stores like Wal-Mart transformed distribution practices.
Many Main Street stores closed, and in their eagerness to compete with box stores and shopping malls, downtowns refurbished by tearing down buildings thought to be unusable, and lost historic buildings along the way.
However, trends are shifting again and downtown has an opportunity to come back, Smith believes.
The economic downturn makes it difficult for suppliers troubled by the credit crunch to supply inventory to retailers. Smith predicted that more Americans will have less money available for discretionary spending and less for luxury items.
“More national retailers will close and consolidate,” she said. "Discount stores will remain stable, but will cut down on expansion plans. As national retailers close, there will be more opportunity for locally owned businesses to absorb those sales.”
Small stores have the opportunity to go national and global via the Internet. Smith said Hartt Apparel, Main Street, Keokuk is a prime example of using the Internet as a sales tool. Hartt Apparel does about 75 percent of its business on its Web site.
Demand for some products and services will grow, with “green products” likely to be permanent.
She predicted several scenarios:
Used merchandise, consignments and auction business will increase as people embrace the need to recycle, she said.
Also, fuel efficient cars are growing in popularity and people are conscious of how much they spend on fuel.
“Given the option, people will be more likely to shop downtown than they have been since the 1960s,” she said.
More people will live downtown anytime since the 1940s.
Loft apartments and downtown apartments eliminate yard work and allow people to walk to work.
Smith recommends focusing on clear economic goals for downtown while simultaneously working on design, organization, promotion and economic restructuring, with market-based strategies intersecting them all.
“Create local investment groups,” she advised. “We could wait for years before the right business comes here. Let's just raise the money and create it here.”
Using the community-owned Green Bay Packers as an example, Smith suggested creating local and regional equity funds, selling shares of small scale industries to the community.
“Actively encourage multiple uses, emphasize small town industry that employs 15-20 people,” she said.
Decker Manufacturing in Keokuk is an example of that model.
“Demand good design across the board,” she added. “We need to expect new development to look like the rest of downtown.”
With that in mind she said “form based code” zoning should replace euclidean zoning to “make downtown more fun” with independent businesses and quirky, unexpected things.
Create tools and resources to help strengthen independent businesses and retailers - the same tools that national chains have.
Develop multiple distribution channels such as Internet and store-to-store marketing.
Provide outstanding Internet service.
Understand that “historic preservation is the greenest development that exists. Downtown buildings were built to be green before there were air-conditioners. They have retractable awnings, ceiling fans with high ceilings, transom light, are deep and narrow and have operable windows for more air circulation."
Couple modern technology and materials with historic buildings to obtain the best of both worlds.
Be skilled and aggressive in using federal and state financing tools to stimulate downtown development.
Stop using the chicken and egg mentality, such as, ‘It would be great to have downtown parking but we have to have more parking.”
“Keokuk has been doing it for years,” she said. “It's time to take a big step.”
She reminded the group of the saying, “If we do not change direction, we're likely to get where we're headed.”
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