Business Resource Guide - Grand Haven Main Street DDA

Core Business
District
Grand Haven
Business
Resource Guide
2013
MAIN STREET PROGRAM
MSDDA Board
Main Street
Dan Borchers, Past
Chairman
Frame and Mat Shop
16-846-2170
The mission of Grand Haven Main Street Downtown Development
Authority (MSDDA) is to enhance a vibrant historic business district
through community efforts, plus public and private partnerships.
Dale Kwekel, Chairman
Grand Haven Garden House
616-842-8680
The function of fulfilling our mission statement is carried out by the
following committees:
George Gardner,
Vice Chairman
De Boer, Baumann &
Company
616-846-3350
Preservation and Place
Committee
Business Recruitment &
Retention Committee
The City of Grand Haven possesses a
very rich historical background, and it‘s
the Preservation and Place Committee
that is in charge of highlighting this
heritage to the public. The committee
seeks to preserve and celebrate the
historical attributes of the properties
within the MSDDA district and educate
the community, businesses, property
owners and members of the MSDDA
organization about the importance of
historical preservation.
Meets 4th Mon. each month, 8 am
The main goal of the Business
Recruitment and Retention Committee
is improving the local economy through
the revitalization of existing businesses
and recruitment of new ones. To
improve business in Grand Haven,
training sessions are held which allow
new skills to be learned and applied.
Meets 3rd Thurs. each month, 9:00 am
Rheba Bolt, Secretary
The Paper Place
616-846-6280
Sharon Behm, Treasurer
Borr’s Shoes & Accessories
616-846-1650
Geri McCaleb
Mayor of Grand Haven
842-3210
Valerie Grant
Studio 206
616-847-0550
John Naser
Resident, BLP Board
616-842-1628
Steve Loftis
Harbor Restaurants
616-638-1648
Randy Smith
Michigan Rag Co.
616-846-3150
John Steinbach
Anchor Realty
231-759-7727
By planning and implementing special
events, this committee focuses on
increasing awareness in Grand
Organization Committee
Haven‘s Core Business District.
Through advertising and other
This committee coordinates and
promotional activities, the Promotions
encourages volunteers, committee
members and business owners to work Committee works to give Grand Haven
a positive image.
towards a common goal. By allowing
Meets 3rd Tues. each month, 8:15 am
the responsibilities to be shared by a
variety of people, the workload is
Principal Shopping District
spread out and cooperation is
Committee
enhanced.
Meets 4th Tues. each month, 8:00 am
Meets 2nd Tues. each month, 8:30 am
Denny Swartout
Duncan Consulting
616-846-9509
David Ten Cate
Capstone Real Estate
616-847-1031
Promotion Committee
2
TA B L E O F C O N T E N T S
Main Street Program
Table of Contents
Introduction
Core Business District Development Improvements
Area Demographics
Local Market Segmentation
Retail Market Potential
Target Businesses
Core Business District Map
MSDDA Services
Chamber Services
MI SBTDC Services
Funding Sources
FAQ
Employment/Economic Climate
Tax Overview
Utility Information
Available Properties
Contacts
City Timelines for Planning Department
Calendar of Events
3
2
3
4
5-8
9
10-11
12-16
17
18
19
20
21
22-24
25-27
28
29
30
31
32
33-40
41
BUSINESS TOOL KIT
INTRODUCTION
Welcome to Grand Haven, Michigan!
Grand Haven is one of Michigan‘s premier lake front communities, and its Core Business District is a
proven retail location, with several businesses such as Floto‘s, Ver Duin‘s Printing and Fortino‘s
operating here for over 60 years. The Core Business District of Grand Haven offers many fine
restaurants, boutiques, and specialty retail establishments with unique products that provide a very
competitive and enticing alternative to other shopping areas.
The Grand Haven Main Street DDA is partnering with the City of Grand Haven and the Chamber of
Commerce, Grand Haven, Spring Lake and Ferrysburg, to provide the best retail business climate
available in West Michigan.
The City of Grand Haven realizes its potential lies in the growth and expansion of existing
businesses paralleled with clustering of new retail establishments. In addition to the many business
tools available, the quality of life in Grand Haven is second to none. The area offers a diverse
economic base, competitive wages, and a strong work ethic.
In the pages that follow you will find, for your convenience, a summarization of resources, contact
information, and tools to help your existing or new business venture succeed.
4
CORE BUSINESS DISTRICT
DEVELOPMENT &
In 2005 the City of Grand Haven, in partnership with the Main Street Downtown Development
Authority (MSDDA), hired Johnson Hill Land Ethics Studio to conduct a Downtown Master Plan. The
plan has guided development efforts in the Core Business District and continues to serve as a vision
for the community. One of the key components of Grand Haven‘s Core Business District
development has been owner conversion of the second and third floors of Core Business District
buildings into condos and other residential unit configurations, which provide an on-site source of
customers and an added measure of safety for the Core Business District retail establishments.
At the request of Grand Haven‘s MSDDA, the City of Grand Haven approved a TIF in 2005 to
capture taxes on improvements in the DDA District to pay for much of its planned redevelopment.
The MSDDA TIF financing mechanism allows for the capture of the incremental growth of local
property taxes over a period of time to fund public infrastructure improvements. By borrowing
against the future tax increments, the MSDDA is able to fund large-scale projects, which can lead to
new development opportunities within the Core Business District.
Also in 2005, The City of Grand Haven was selected as a Michigan Main Street community. Being a
selected community in the Michigan Main Street program has provided Core Business District Grand
Haven with additional services, skills, and knowledge, giving it the necessary framework to be a
viable core business district.
The DDA and the City have partnered together on redevelopment of the Core Business District‘s
infrastructure. To date, three Core Business District block-long parking areas have been totally
redone with overhead utility lines relocated underground, trash collection consolidated in central
collection structures, walkways reconstructed with attractive imprinted concrete, and new
landscaping and light fixtures installed. The first three blocks of Washington Ave., the main artery
through our Core Business District business district, have also been renovated to include new water
and sewer lines, sidewalks, street surfaces, lighting, landscaping, and installation of an extensive
snow melt system. Over nine million dollars has been invested in these two important infrastructure
projects.
In addition to the redevelopment activities detailed above, the Core Business District area has seen
the complete renovation of the Loutit District Library, Tri-Cities YMCA, Grand Haven Community
Center, City Marina, Boardwalk, and Ottawa County Courthouse. Private investment has been high
within the Core Business District area, as well, with more historic buildings being restored and
repurposed than replaced with new structures. For example, the building at 41 Washington served
as the former Story and Clark Piano Factory. In the 1980s the building was converted into ground
floor retail and restaurant space while the upper levels have been maintained as office space. The
building at 20 Washington housed the Grand Theater until it was converted into ―A Seafood and
Oyster Bar,‖ where it serves as a popular destination while maintaining the theater‘s original façade
and marquis.
5
CORE BUSINESS DISTRICT
DEVELOPMENT &
The last few years have also brought façade updates for several buildings on Washington
Avenue and 7th Street, such as the recent remodel of the Bekins store at 735 Washington. .
While the MSDDA has been dedicated to infrastructure improvements, it has also been focused
on strengthening the core business district through business recruitment and skills training for
current business owners. The MSDDA‘s commitment to its businesses can be seen by the
extensive marketing studies that have been conducted in 2003, 2007 and 2011. Those
documents serve as guidelines to help create vibrancy and to shape the Core Business District
business district.
Grand Haven‘s new ―streetscape‖
6
CORE BUSINESS DISTRICT
DEVELOPMENT &
Before
After
Parking area behind the Kirby House prior to reconfiguration.
Parking area behind the Kirby House after reconfiguration and new
development.
Before
After
Parking area and alley way behind Fortino‘s prior to reconfiguration.
Parking area and alley way behind Fortino‘s after reconfiguration.
7
CORE BUSINESS DISTRICT
DEVELOPMENT & IMPROVEMENTS
Grand Haven Community Center
Loutit District Library
Ottawa County Court House
8
AREA DEMOGRAPHICS
For more information please visit www.downtowngh.com for the Retail
Market Study or contact the MSDDA office at 616-844-1188.
Basic Demographic Information—Local Customer Area
The following customer demographic data is based upon information contained in a series of ESRI
reports generated for 5, 10 and 20 minute drive time areas originating from the center of the Grand
Haven MSDDA business district.
Demographic Snapshot
Core Business District Grand Haven Drive
Time Areas
State of MI
5 Minutes
10 Minutes
20 Minutes
2010 Census
12,117
35,634
163,237
9,883,640
2011 Estimate
12,082
35,731
163,352
9,854,732
2016 Projection
12,391
36,611
165,472
9,801,082
+2.6%
+2.5%
+1.3%
-0.5%
2010 Census
5,350
15,050
63,074
9,883,640
2011 Estimate
5,335
15,080
63,109
3,861,085
2016 Projection
5,511
15,548
64,325
3,864,336
+3.3%
+3.1%
+1.9%
+0.1%
2010 Census
41.4
42.3
38.3
38.8
2011 Estimate
41.6
42.5
38.4
38.9
2016 Projection
42.5
43.6
39.0
39.4
2011 Estimate
$42,856
$46,087
$38,906
$44,734
2016 Projection
$51,632
$53,927
$46,522
$52,533
+20.5%
+17.0%
+19.6%
+17.4%
Population
Change: 2011-2016
Households
Change: 2011-2016
Median Age
Median Household Income*
Change: 2011-2016
*Median household income figures are highest at the ten-minute drive time level and exceed median household income figures reported for the State of Michigan. Median household income is expected to grow at a five-year rate ranging from 17.0% in the tenminute drive time area to 20.5% in the five-minute drive time area. Anticipated growth rates in the five– and ten-minute drive time
areas outpace the 17.4% increase in median household income projected for the State of Michigan for the period from 2011-2016.
Source: ESRI –Compiled from Census 2010 Summary Profile; and Demographic and Income Profile (2011 Data) Report
9
L O C A L M A R K E T S E G M E N TAT I O N
Top Market Segments
These market segments describe the groups of residents in the drive time areas. Of course, not
every person or every family in the area fits into one of these segments, but these segments
represent the largest population groups in the area.
Households
Market Segment
33. Midlife Junction
5 Minute Drive Time
Count
Percent
10 Minute Drive Time
Rank
Count
Percent
Rank
20 Minute Drive Time
Count
Percent
Rank
1,027
17.4%
1
3,353
21.8%
1
5,157
7.7%
3
18. Cozy & Comfortable
957
16.2%
2
1,686
11.0%
2
4,985
7.5%
4
32. Rustbelt Traditions
827
14.0%
3
827
5.4%
8
7,709
11.6%
2
48. Great Expectations
674
11.4%
4
677
4.4%
9
1,016
1.5%
21
14. Prosperous Empty Nesters
583
9.8%
5
971
6.3%
4
1,620
2.4%
15
Segment 1— Midlife Junction (1,027 households, 17.4% of people in 5 minute drive time)
The Midlife Junction segment lies somewhere between the child-rearing years and retirement. Households
are a mix of families and singles who live alone or who share housing. Nearly half are married couple
families; 31 percent are singles. Most of the labor force is still employed but approaching retirement.
Approximately one-third of these residents already draw retirement income. Most still own their homes, but
many have left behind home ownership responsibilities and moved into multi-unit apartment buildings. The
housing market is a mix of single family homes and low density apartments, somewhere between urban and
rural. The median home value is $131,464. Midlife Junction residents have a median age of 41.8 years and
a median household income of $48,161. They live quiet, settled lives. They spend their money prudently and
do not succumb to fads. They are comfortable shopping online or by phone. Dining out on the weekends at
full service restaurants is a favorite activity; they also patronize fast food establishments. They enjoy
gardening, watching television, reading books and newspapers and communicating with friends and family by
e-mail.
Segment 2—Cozy and Comfortable (957 households, 16.2% of people in 5 minute drive time)
Cozy and Comfortable families are settled, married and still working but nearing retirement. Many couples
are still living in the same pre-1970s, single family homes in which they raised their children. These houses
carry a current average market value of $154,868 and are located mainly in suburban areas of the Midwest
and Northeast. With a median age of 42.3 years, most of the population in this market is older than the U.S.
average. The median household income is $65,665. Forty-six percent of households receive investment
income and residents prefer mutual funds and consult financial planners. Employed residents work in
professional, managerial and service occupations in a variety of industry sectors. They are likely to have a
second mortgage and hold home equity credit lines to complete their home improvement projects. Television
is more important than technology for Cozy and Comfortable residents; many households own four or more
TV sets. The Golf Channel and Home and Garden Television are among their favorite channels. They own
home computers, but they are content with old equipment and software.
10
L O C A L M A R K E T S E G M E N TAT I O N
Top Market Segments — Continued
Segment 3—Rustbelt Traditions (827 households, 14.0% of people in 5 minute drive time)
Rustbelt Traditions neighborhoods are primarily a mix of married-couple families, single parents and singles
who live alone. The median age is 36.7 years and the median household income is $51,378. The employed
work predominantly in the service industry, manufacturing and retail trade, with about half of the employed
working at white-collar jobs. Home ownership among Rustbelt Traditions is 72 percent. The median home
price is $94,696 with two-thirds of families occupying homes built before 1960. These residents stay close to
home; not tempted by fads, they stick to familiar products and services and shop for bargains. They will
spend money on their families, yard maintenance and home improvements. These financially conservative
residents prefer to bank at a credit union and have personal savings. Rustbelt Traditions families like to
bowl, fish, hunt, attend car races and hockey games. They are big TV fans who subscribe to cable and tend
to favor cable over network shows. They go online weekly to play games and to shop.
Segment 4—Great Expectations (674 households, 11.4% of people in 5 minute drive time)
These are primarily young singles who live alone and married-couple families, with a median age of 33.3
years. These residents are just beginning their careers or family lives and nearly half of them have some
postsecondary education. They work primarily in the manufacturing, retail and service industry sectors, and
the median household income is $40,243. About fifty percent of residents own their homes, most of which
were built before 1960, and the median home value is $100,315. Great Expectations homeowners are not
afraid to tackle smaller maintenance and remodeling projects, but they enjoy a young and active lifestyle.
Focused on starting their careers, these residents are not saving for retirement yet, travel very little and tend
to shop at major discount and department stores. They do go out to dinner and to movies and they tend to
watch drama, science fiction, sports and news on TV or DVD.
Segment 5—Prosperous Empty Nesters (583 households, 9.8% of people in 5 minute drive time)
About 60 percent of householders in the Prosperous Empty Nesters neighborhoods are over the age of 55
and are enjoying the move from child-rearing to retirement. The median age is 48.9 years, and the population
in this segment is slowly increasing. Approximately 71 percent of households earn income from
wages/salaries, 59 percent receive investment income, 30 percent collect Social Security benefits and 28
percent receive retirement income, leading to a median household income of $67,295. Nearly 70 percent of
this group have attended college, with 41 percent holding bachelor‘s or graduate degrees. Those residents
who are still working have professional and management careers. Most of the housing in this segment is
single-family with a median home value of $193,784. Prosperous Empty Nesters value their health and
financial well-being. They invest in annuities, CDs, stock, mutual, money market and tax-exempt funds.
They exercise and spend money on health care products. These residents have hobbies. attend sports
events and volunteer for civic and charitable organizations. They travel extensively, watch news and talk
programs, and read daily papers, books and business or fitness magazines.
11
R E TA I L M A R K E T P O T E N T I A L
For more information please visit www.downtowngh.com for the Retail Market Study or
contact the MSDDA office at 616-844-1188
Retail Market Potential
The three tables on the following pages show different measures of the area‘s Retail Market Potential which
helps identify segments of the retail industry that are not at full potential.
The Consumer Spending Potential report for the Core Business District Grand Haven drive time areas shows
2010 estimated amounts spent on a variety of goods and services by households within these areas. Overall,
the data is indicative of an attractive consumer market with spending near, at or above the national average in
nearly all categories; and with exceptional strength shown, in particular, in the 5 and 10-minute drive time
areas.
The Leakage/Surplus Report presents a snapshot of retail opportunity. This is a measure of the relationship
between supply (retail sales by businesses) and demand (consumer spending by household).
A negative number represents ‗leakage‘ of retail opportunity outside of the trade area. In other words,
customers from our local trade area of Grand Haven, Spring Lake and Ferrysburg are spending that much
outside of our area to fulfill their demand for consumer goods and services.
A positive number represents a surplus of retail sales, a market where customers are drawn in from
outside the trade area. In other words, the businesses in the Grand Haven, Spring Lake and Ferrysburg
area are selling more than the demand produced by residents of the area.
Frequently, a leakage of sales represents a major area of opportunity for the Core Business District, but this
is not always true. For example, the data indicates a large leakage for department stores, but a large
department store is not a good candidate to recruit for the Core Business District area. This large leakage is
probably caused by local customers shopping in department stores in the Lakes Mall area.
Core Business District businesses could, however, take back some of that lost spending potential from
department stores and convert it to independent specialty stores that carry department store style
merchandise—clothing, shoes, housewares, etc.
It is also not always true that industries showing a surplus of sales, drinking establishments for example, are
past their maximum retail potential. People from areas well outside the local customer market are drawn to
our lovely Core Business District for an evening out on the town. In this case, a large group of similar
businesses (such as bars) create more of a draw and a bigger overall market than would just a few
businesses. Adding more bars and other eating establishments will likely just continue to increase the
customer base.
The Sales Surplus/Leakage Factors report is another way to show the relationship between supply and
demand. Categories showing the highest surplus factors may be indicative of relative strength in the market.
Negative leakage factors may reveal retail opportunity outside the trade area, with the lowest values
indicating possible targets for retail expansion or recruitment.
The following table shows drive time estimates for some of the highest and lowest Surplus/Leakage Factors
for select Retail and Food & Drink categories and subcategories at the five minute drive time level.
12
R E TA I L M A R K E T P O T E N T I A L
Consumer Spending Potential
The ESRI Market Profile report for the Core Business District Grand Haven drive time areas shows 2010 estimated
amounts spent on a variety of goods and services by households within these areas. The Spending Potential Index
represents the amount spent in the area relative to a national average of 100. The data is indicative of an attractive
consumer market with spending near, at or above the national average in nearly all categories.
Spending Category
5 Minutes
10 Minutes
20 Minutes
Apparel & Services: Total $
$9,441,942
$26,140,004
$93,733,946
$1,595.19
$1,701.27
1,404.89
67
71
59
$1,231,417
$3,436,287
$12,216,830
$208.04
$223.64
$183.11
95
102
83
$7,325,444
$20,019,675
$70,778,162
$1,237.62
$1,302.94
$1,060.82
101
107
87
$18,500,710
$52,156,624
$184,249,640
$3,125.65
$3,394.51
$2,761.54
97
105
86
Food at Home: Total $
$25,480,079
$70,560,485
$254,265,785
Average Spent
$4,304.79
$4,592.29
$3,810.94
Spending Potential Index
96
103
85
Food Away from Home: Total $
$18,313,594
$50,877,525
$182,745,682
$3,094.04
$3,311.26
$2,738.99
96
103
85
$22,481,705
$62,495,967
$220,148,721
$3,798.23
$4,067.42
$3,299.59
102
109
89
$10,120,425
$28,586,723
$100,650,357
$1,709.82
$1,860.51
$1,508.55
83
90
73
Investments: Total $
$9,793,015
$27,962,106
$92,938,400
Average Spent
$1,654.50
$1,819.86
$1,392.96
95
105
80
$135,046,411
$380,612,399
$1,354,169,362
Average Spent
Spending Potential Index
Computers & Accessories: Total $
Average Spent
Spending Potential Index
Education: Total $
Average Spent
Spending Potential Index
Entertainment/Recreation: Total $
Average Spent
Spending Potential Index
Average Spent
Spending Potential Index
Health Care: Total $
Average Spent
Spending Potential Index
Household Furnishings & Equip: Total $
Average Spent
Spending Potential Index
Spending Potential Index
Retail Goods: Total $
Source: ESRI Market Profile, 2010. Data Notes: Expenditures are shown by broad categories that are not mutually exclusive.
Consumer spending does not equal business revenue. Expenditure data derived from Consumer Expenditure Surveys, Bureau of
Labor.
13
R E TA I L M A R K E T P O T E N T I A L
Sales Surplus & Leakage (Retail Gap) Estimates
The Retail Gap represents the difference between Retail Potential and Retail Sales.
A positive number represents a surplus in retail sales over what would be expected
from the trade area, often indicating a market where customers are drawn in from outside the trade area.
Negative values indicate areas where customers are shopping elsewhere.
For example, Total Retail Trade and Food & Drink estimates for the drive times show sales surpluses ranging
from approximately $85 million for the five minute drive to $141 million for the ten minute drive time. The
estimates show strong retail performance across all drive time categories and are suggestive of a market
region that is experiencing consistent sales to consumers residing outside of the trade area. These estimates
could point to opportunities for expansion and recruitment in a variety of Retail Food and Drink categories.
NAICS Code: Business Description
5 Minutes
10 Minutes
20 Minutes
Surplus/(Leakage)
Estimate
Surplus/(Leakage)
Estimate
Surplus/(Leakage)
Estimate
44-45, 722: Total Retail Trade and Food & Drink
85,860,749
141,881,038
85,869,420
44-45: Total Retail Trade
53,282,094
98,628,689
74,227,481
722: Total Food & Drink
32,578,655
43,252,349
11,641,939
441: Motor Vehicle & Parts Dealers
7,972,820
(14,876,243)
(58,266,717)
4411: Automobile Dealers
7,460,555
(9,611,809)
(64,830,225)
4412: Other Motor Vehicle Dealers
1,554,636
(56,516)
17,508,843
4413: Auto Parts, Accessories, and Tire Stores
(1,042,371)
5,207,918)
(10,945,335)
442: Furniture & Home Furnishings Stores
(1,123,959)
3,509,565
(716,986)
4421: Furniture Stores
(1,252,822)
3,246,380
361,198
128,863
263,185
(1,078,184)
(1,228,366)
4,092,183)
(18,051,673)
444: Building Materials, Garden Equip. & Supply
8,626,616
6,398,315
13,185,674
4441: Building Material & Supplies Dealers
9,612,153
7,766,323
5,017,788
4442: Lawn and Garden Equip. & Supplies
(985,537)
(1,368,008)
8,167,886
445: Food & Beverage Stores
17,758,197
59,114,344
55,517,023
4451: Grocery Stores
14,656,251
57,982,544
55,747,228
4452: Specialty Food Stores
1,558,523
906,474
1,960,009
4453: Beer, Wine and Liquor Stores
1,543,423
225,326
(2,190,214)
446/4461: Health & Personal Care Stores
2,467,693
4,001,975
6,710,156
4422: Home Furnishings Stores
443/4431: Electronics & Appliance Stores
Source: ESRI Retail MarketPlace Profile, 2010.
14
R E TA I L M A R K E T P O T E N T I A L
Sales Surplus & Leakage (Retail Gap) Estimates, Continued
5 Minutes
10 Minutes
20 Minutes
Surplus/(Leakage)
Estimate
Surplus/(Leakage)
Estimate
Surplus/(Leakage)
Estimate
20,571,005
19,464,376
77,826,061
448: Clothing and Clothing Accessories Stores
100,543
18,510,466
(2,000,578)
4481: Clothing Stores
(14,447)
16,101,788
478,197
4482: Shoe Stores
(286,549)
1,467,785
(747,903)
401,539
940,893
(1,730,872)
3,276,243
7,008,254
(1,887,541)
203,489
3,613,390
294,074
3,072,754
3,394,864
(2,181,615)
(4,373,568)
(2,994,778)
7,664,308
87,350
19,295,555
11,862,770
(4,460,918)
(22,290,222)
(4,198,462)
2,063,103
3,836,312
1,164,391
4531: Florists
156,410
166,580
524,772
4532: Office Supplies, Stationery & Gift Stores
902,416
856,062
(682,866)
4533: Used Merchandise Stores
278,326
468,669
211,113
4539: Other Miscellaneous Store Retailers
725,951
2,345,001
1,111,372
(2,828,233)
(1,251,714)
(6,916,637)
(601,649)
(1,896,374)
(2,291,247)
4542: Vending Machine Operators
(1,595,582)
2,534,022
436,782
4543: Direct Selling Establishments
(631,002)
(1,889,362)
(5,062,172)
7221: Full-Service Restaurants
19,098,140
17,608,160
6,436,671
7222: Limited-Service Restaurants
13,200,891
27,083,677
10,428,518
833,566
707,568
(680,327)
NAICS Code: Business Description
447/4471: Gasoline Stations
4483: Jewelry, Luggage & Leather Goods Stores
451: Sporting Goods, Hobby, Book & Music Stores
4511: Sporting Goods/Hobby/Musical Instruments
4512: Book, Periodical, and Music Stores
452: General Merchandise Stores
4521: Department Stores (Excluding Leased Depts.)
4529: Other General Merchandise Stores
453: Miscellaneous Store Retailers
454: Nonstore Retailers
4541: Electronic Shopping and Mail-Order Houses
7224: Drinking Places
Source: ESRI Retail MarketPlace Profile, 2010.
15
R E TA I L M A R K E T P O T E N T I A L
Sales Surplus/Leakage Factors
Sales Surplus/Leakage Factors also present a snapshot of retail opportunity. This is a measure of the
relationship between supply and demand that ranges from +100 (total surplus) to –100 (total leakage). A
positive value represents a surplus of retail sales over what is expected from the local area (often indicative of
a market where customers are drawn in from outside the trade area). Categories showing the highest surplus
factors may be indicative of relative strength in the market. Negative leakage factors may reveal retail
opportunity outside the trade area, with the lowest values indicating possible targets for retail expansion or
recruitment.
The following table shows drive time estimates for some of the highest and lowest Surplus/Leakage Factors
for select Retail and Food & Drink categories and subcategories at the five minute drive time level.
Sales Surplus/Leakage Factors—Select Categories
5 Minutes
NAICS Code: Business Description
10 Minutes
20 Minutes
Factor
# Biz
Factor
# Biz
Factor
# Biz
Drinking Places—Alcoholic Beverages (NAICS 7224)
64.4
3
32.6
5
(7.7)
30
Book, Periodical, and Music Stores (NAICS 4512)
62.4
2
40.0
6
(14.0)
8
Building Material & Supplies Dealers (NAICS 4441)
53.9
10
24.6
24
5.7
65
Used Merchandise Stores (NAICS 4533)
52.3
13
38.3
22
5.5
50
Full-Service Restaurants (NAICS 7221)
47.0
44
23.0
70
3.1
204
Limited-Service Eating Places (NAICS 7222)
42.5
27
35.1
53
5.3
122
Florists (NAICS 4531)
36.8
2
16.4
5
11.5
16
Specialty Food Stores (NAICS 4481)
35.5
4
11.1
7
10.8
21
Beer, Wine & Liquor Stores (NAICS 446/4453)
33.6
4
2.8
5
(14.0)
11
Clothing Stores (NAICS 4481)
(0.2)
11
48.2
41
0.7
83
Lawn & Garden Equip. & Supplies Stores (NAICS 4442)
(79.0)
1
(29.6)
6
38.0
30
Shoe Stores (NAICS 4482)
(42.6)
1
35.3
8
(8.0)
14
Furniture Stores (NAICS 4421)
(32.2)
4
18.2
7
0.7
18
Other General Merchandise Stores (NAICS 4529)
(24.7)
2
(51.5)
3
(1.5)
38
Special Food Services (NAICS 7223)
(19.3)
5
(30.3)
7
(19,9)
23
Electronics & Appliance Stores (NAICS 443/4431)
(16.2)
11
(20.2)
20
(30.2)
65
Clothing Stores (NAICS 4481)
(0.2)
11
48.2
41
0.7
83
Data Source: ESRI Retail MarketPlace Profile, 2010
16
R E TA I L M A R K E T P O T E N T I A L TA R G E T B U S I N E S S E S
The data and findings suggest that opportunities and strategies to increase core business district
market share might be focused in four areas:
1. Local, client and convenience-oriented marketing and business development strategies which
appeal to characteristics and traits common to the Midlife Junction, Cozy & Comfortable, Rustbelt
Traditions, Great Expectations and Prosperous Empty Nesters tapestry market segments
dominating the five minute drive time area. These strategies are likely to emphasize local
personalities, hometown customer service, local traditions and convenience.
2. Extending regional reach through intentional marketing, messages and events specifically
designed to appeal to the lifestyle characteristics of the aforementioned segments and possibly
with particular emphasis on characteristics associated with the Green Acres tapestry market
segment which, cumulatively then, represent about 57% to 42% of 10 and 20 minute drive time
area households, respectively.
3. Capitalizing on existing and evolving core business district business niches which offer particular
appeal for targeted tapestry lifestyle consumer segments.
4. Continuing marketing efforts to attract visitors from outside the drive time areas. These efforts
and related messages are most likely to emphasize the day trip experience; business niches and
impulse retail clusters with high appeal for visitors and tourists; recreational attractions and
opportunities; and evening dining and entertainment options.
Analysis of retail data and sales surplus & leakage estimates reveals areas of retail strength and
other areas that might represent prime opportunities for expansion and/or complementary product
and services lines. Retail categories and subcategories which, based strictly on the analysis of
ESRI Retail MarketPlace report data, appear to be areas of relative strength in the community and/or
core business district include:
►Drinking Places ► Book, Periodical and Music Stores ►Full Service Restaurants ►Limited
Service Eating Places ► Florists ► Specialty Food Stores ► Beer, Wine and Liquor Stores
Retail categories, subcategories and product lines which, based solely on the analysis of ESRI data,
might represent some of the best and most immediate opportunities for growth and expansion
include:
►Electronic and Appliance Stores ►Furniture Stores ►Shoe Stores ►Lawn & Garden Equipment
and Supply Stores.
Ideas and suggestions offered by focus group participants for desired retail business types and
concepts and for new and expanded retail business types identified as having the best chance to
succeed in Grand Haven‘s core business district , could offer additional insight and direction for ―top
prospects.‖ The list includes:
►Restaurants ►Kitchen Gadgets ►Spices ►Clothing (Men‘s and Women‘s) ►Outfitter/Sports
Clothing/Recreational Equipment ►Department Store ►Boutique Hotel ►Hardware ►Drug Store
►Skate/Surf/Swim Shop ►Grocery and ►Video Arcade/Gaming
17
18
G R A N D H AV E N M A I N S T R E E T
DOWNTOWN DEVELOPMENT
AUTHORITY (MSDDA) SERVICES
The MSDDA‘s mission is to enhance a vibrant historic business district through community efforts
and public/private partnerships. The MSDDA offers a variety of services and opportunities to
businesses within the core business district:
Workshops, seminars and training
Customer service training
Shoplifting prevention training
Small business financial management
Marketing and Advertising workshop
Employee Management training
Others available upon request
Business referrals
Business promotion
District-wide special events
Site selection-location assistance
Representation to local and regional policy makers
Networking opportunities
19
CHAMBER OF COMMERCE
G R A N D H AV E N , S P R I N G L A K E &
FERRYSBURG SERVICES
Some of the services the Chamber offers its members include:
Training and seminar discounts
Human resources information
Training needs assessments
Workshops & seminars
Customer service training program
Business referrals
Resource matching
Business promotion
Site selection-location assistance
Legislative liaison
Early Bird Breakfasts
Monthly B*A*S*H (Business After Standard Hours)
Chamber Leads Networking Groups
Contact the Chamber of Commerce, Grand Haven, Spring Lake and Ferrysburg at
616-842-4910 for additional programs and services that may be available to you.
20
MICHIGAN SMALL BUSINESS &
TECHNOLOGY DEVELOPMENT
CENTER RESOURCES
Small Business Readiness Assessment Tool
Guide to Starting a Small Business
Sample Business Plans
Information Resources
SCORE: “Counselors to America’s Small Business”
Counseling
*These resources and more can be accessed by contacting the Michigan Small Business &
Technology Development Center (MISBTDC) located in Grand Valley State University at
616-331-5000 or by visiting http://www.gvsu.edu/misbtdc/.
Additional business information can be accessed through the Loutit District Library.
407 Columbus Street
Grand Haven, MI 49417
616-842-5560
www.loutitlibrary.org
21
FUNDING SOURCES
Commercial Real Estate Loan (Owner Occupied)
Typically 5 year term with a 15-20 year
amortization
Lender will generally finance 80-85% of purchase
price or appraised value
Appraisals required for loan amounts exceeding
$250,000
1.3x Cash Flow Coverage requirement
Commercial Real Estate Loan (Non-owner Occupied)
Typically 5 year term with 15-20 year amortization
Lender will generally finance 65-75% of purchase
price or appraised value
Appraisals required for loan amounts exceeding
$250,000
Government
The US Small Business Administration (SBA) provides loan
guarantees under its 8(a), 504, 7(a) and Low-Doc Programs.
These programs are administered through regulated financial
institutions or community development corporations (CDCs).
The Chamber of Commerce Grand Haven, Spring Lake,
Ferrysburg acts as an SBA 504 loan packaging and servicing
agent for the West Michigan Lakeshore Certified Development
Company. This SBA program is an economic development tool
designed to assist small businesses in expanding their business by providing fixed asset financing that has a fixed rate and
is long term. The program requires that one job be retained
and/or created for every $65,000 loaned through the SBA 504
financing program. For profit small businesses are eligible for
this program. The maximum loan available is $1.5 million or
40% of the total project, whichever is less. The SBA takes a
second position behind the bank.
Economic Development Corporation (EDC) Loans
Term Loans
A loan with an established term and payoff schedule, used for a specific, one time purpose
Use for capital purchases, including:
City of Grand Haven EDC Revolving Loan Fund Gap Financing
(Low interest gap financing to assist City of GH businesses
obtain loans that do not meet traditional bank lending
guidelines.)
Property improvements/expansions
Equipment or automobile purchases
Community Development Block Grant (CDBG)
Debt restructuring
The CDBG program is a federally-funded program dating back
to 1974. The program is designed to provide eligible local units
of government with grants to assist low and moderate income
people, eliminate slum and blight or meet an urgent need.
Business acquisition
Permanent working capital
Business Credit Line
A revolving line of credit for small business customers to help them manage their cash flow.
Ideal for businesses with short term and seasonal
needs to:
Grants are awarded to address:
Economic development infrastructure to facilitate business
locations/expansions
Core Business Districts and gateways infrastructure
Purchase inventory
Economic development planning grants
Carry account receivables
Public works public infrastructure grants for low/mod communities
Fulfill seasonal needs
Provide Working Capital
Meet Payroll
Unique innovative project needs
Contact David Miller at the Chamber of Commerce for additional
information about these and other financing options.
22
FUNDING SOURCES
Yourself: Personal assets may be used to capitalize your business. Savings, retirement funds or the sale of
assets (e.g. garage sales, pawn shops) and investments may be sources of financing. Borrowing against the
equity in your home or using consumer credit cards are possibilities, too. There are risks involved with borrowing against home equity, which should be carefully weighed with the assistance of a qualified professional.
Family & Friends: Friends and/or family members may loan you money to start your business OR they may
invest their personal savings or other assets in your business. Terms of the loan or the investment agreement
should be decided in advance and should be documented.
Suppliers: Businesses that supply your business with inventory and supplies may be willing to extend you
credit. Generally, inventory or supplies are delivered to you under the agreement that you will pay the supplier
in 30 to 60 days. As a new venture business without a track record, however, this will be an extremely difficult
source to secure unless you have had a good prior working relationship with the supplier.
Regulated Financial Institutions: Regulated Financial Institutions (banks and credit unions) provide a
variety of financial services to individuals and small businesses including lines of credit, term loans and
mortgages. New venture financing is primarily based on the borrower's ability to repay the loan. As the
business grows, personal assets and financing will still be heavily considered, but the bank will begin to rely
more on the business's ability to generate revenue for payments.
Your loan proposal will be evaluated on your:
Relationship with them
Management Ability
Collateral
Owner's equity
Cash Flow
Credit history
Venture Capitalists: Venture Capitalists provide equity investments to businesses experiencing rapid growth
-- 50% per year or more and revenues of $20-50 million in 5 to 7 years. In addition to firm ownership, venture
capitalists will also want management input in the form of board seats or executive positions.
Investors: Investors or Angels contribute capital to your business in return for partial ownership or debt
repayment. They may or may not participate in the management of the business. Financing can take many
forms from a simple partnership or debt financing to a public or private stock offering. Usually the
investor/shareholder shares in the distribution of earnings, called "draws" in a partnership or "dividends" in a
corporation. The amount of the distribution earned by the investor is related to the percentage ownership or
the number of shares held. Seek advice from a CPA or other financial professional when considering this type
of financing assistance.
Source: Michigan Small Business and Technology Development Center
23
FUNDING SOURCES
Area Banking Institutions
National City Bank
1101 Robbins Road
Grand Haven, MI 49417
616.846.3555
Michigan Commerce Bank*
333 Washington Ave
Grand Haven, MI 49417
616.846.1930
Chase Bank*
300 Washington Ave.
Grand Haven, MI 49417
616.847.3247
Huntington Bank
1300 South Beacon Blvd
Grand Haven, MI 49417
616.846.0336
Chemical Bank
1600 South Beacon Blvd
Grand Haven, MI 49417
616.846.5800
Macatawa Bank
15135 Whittaker Way
Grand Haven, MI 49417
616.847.3740
Comerica Bank
1102 Robbins Road
Grand Haven, MI 49417
616.846.1523
Lake Michigan Credit Union
951 Jackson Street
Grand Haven, MI 49417
616.242.9790
Community Shores Bank
15190 Newington Dr Ste 300
Grand Haven, MI 49417
616.844.5600
Lake Trust Credit Union
17350 Robbins Road
Grand Haven, MI 49417
616.842.3410
Fifth Third Bank *
233 Washington Ave
Grand Haven, MI 49417
616.847.2221
Nu Union Credit Union
16916 Robbins Road
616.842.3410
Fifth Third Bank
839 Robbins Road
Grand Haven, MI 49417
616.847.2337
Tri-Cities Credit Union
905 Pennoyer Ave.
Grand Haven, MI 49417
616.842.6320
Flagstar Bank*
22 South Harbor Drive
Grand Haven, MI 49417
616.604.1928
* Located within the Core Business District.
24
FAQ
Where can I obtain DDA District information on market saturation, competitive businesses in the area,
and community demographics?
Grand Haven MSDDA 616-844-1188
and/or
The Chamber of Commerce Economic Development Office 616-846-3153
Who can assist me in determining where in the DDA District it makes sense to locate my business?
Grand Haven MSDDA
616-844-1188
Who should I contact for a listing of available properties for lease or purchase in the DDA District?
Grand Haven MSDDA 616-844-1188
and/or
The Chamber of Commerce Economic Development Office 616-846-3153
Where can I obtain property tax information on properties I might be interested in?
City of Grand Haven City Treasurer 616-842-3210
Who can provide building code, zoning, and other City ordinance and procedure information?
City of Grand Haven Building & Planning Department 616-847-3490
Grand Haven‘s Zoning Ordinance can be found on the City‘s website: www.grandhaven.org under the City
Services heading
Where can I get assistance in evaluating zoning, permitting, and building code requirements,
including questions on ADA compliance, before purchasing/leasing a new location or expanding/
remodeling on site?
To avoid unanticipated requirement surprises, the City‘s Building & Planning Department should be contacted
prior to purchasing property or making any changes. The Building Inspector is available to help ensure that
you are aware of building and zoning code requirements before finalizing your plans. City of Grand Haven
Building & Planning Department 616-847-3490
Who can provide information on permits required for signage, outdoor cafes, overnight parking, and
liquor licenses, etc?
Signage & Outdoor cafes:
Overnight Parking:
Liquor Licenses:
City of Grand Haven Building & Planning Department 616-847-3490
City of Grand Haven City Clerk‘s Office 616-847-4886
City of Grand Haven Public Safety Department 616-842-3460
25
FAQ
When do I need to get a permit for repairing, remodeling, and/or expanding my business space?
Repairing or Replacing:
Siding or trim, more than 100 sf.
Missing shingles, more than 25% of roof area.
Foundation walls.
Roofing or re-roofing 200 sf or more.
Replacing interior wall coverings (not including wallpapering or painting)
Replacing or installing:
New handrails and guardrails.
New walls within a building, including in a basement or garage.
A new window when it includes the frame.
A new door when it includes the frame.
A garage overhead door when it includes the frame.
Replacing or building a new deck, stoop, or stairs.
Remodeling a room.
Adding a new addition.
Building a new building or accessory building over 200 sf (garage, shed).
Pouring a concrete driveway.
Building or installing a swimming pool in ground or above.
Building a fence over 6 feet high.
If in doubt, check with: City of Grand Haven Building & Planning Department 616-847-3490
Who can provide assistance in determining the best legal form (LLC, partnership, etc.) for my new
business?
The Chamber of Commerce can direct you to the appropriate source, depending upon your specific
circumstances:
The Chamber of Commerce Economic Development Office 616-846-3153
Where can I get assistance in formulating a sound business plan?
The Chamber of Commerce Economic Development Office 616-846-3153
Who can provide information on financing options and economic incentive for businesses located in
the DDA District?
Grand Haven MSDDA 616-844-1188
and/or
The Chamber of Commerce Economic Development Office 616-846-3153
26
FAQ
Who do I contact for information on the cost of and access to electricity and sewer/water?
Electricity:
Grand Haven Board of Light & Power (BLP) 616-846-6250
Sewer/Water: North Ottawa Water System (NOWS) 616-847-3488
Do I need to register my business with the City of Grand Haven?
Yes.
Contact:
City of Grand Haven Building & Planning Department 616-847-3490
27
EMPLOYMENT/ECONOMIC
C L I M AT E
For up to date information regarding the Grand Haven area employment climate and economic data
please visit http://www.upjohninstitute.org/regional/index.htm
28
C I T Y O F G R A N D H AV E N TA X
OVERVIEW
City of Grand Haven
519 Washington Avenue
Grand Haven, MI 49417
616-842-3210
Budget for Fiscal Year July 1, 2011 through June 30, 2012
Property Tax Rate and Millage Levy
Operating Levies
2010-2011
2011-2012
Increase (Decrease)
Undesignated
9.6914
9.6314
-0.0600
Streets Program
0.8500
0.8500
0.0000
0
0
0.0000
NOCCOA Senior
Activities
0.2497
0.2497
0.0000
Tri Cities Museum
0.2454
0.2454
0.0000
Public Transportation
0.5700
0.6000
0.0300
Community Center
(voted)
0.7500
0.7800
0.0300
Infrastructure Debt Service
1.0000
1.0000
0.0000
Total Levy
13.3565
13.3565
0.0000
CBDDA Millage
1.8448
1.8448
0.0000
Total Levy for properties in DDA
15.2013
15.2013
0.0000
Capital Improvements
Additional Voted Millage
29
U T I L I T Y I N F O R M AT I O N
Electric
Grand Haven Board of Light and Power
616-846-6250
www.ghblp.org
Waste Service
Allied Waste
877-698-7274
www.disposal.com
Gas
Michigan Gas Utilities
616-844-7511
www.michigangasutilities.com
Waste Management
800-796-9696
www.wm.com
Water
City of Grand Haven
616-842-3210
www.grandhaven.org
Arrowaste, Inc.
616-748-1955
www.arrowaste.com
Sewer
City of Grand Haven
616-842-3210
www.grandhaven.org
Telephone/Internet
Charter Communications
877-728-3126
www.chartercommunications.com
Azulstar
616-842-2763
www.azulstar.com
TDS
877-208-5111
www.tds.com
AT&T
888-944-0447
www.att.com
30
AVA I L A B L E P R O P E R T I E S
Please contact these offices for available property listings.
Commercial Real Estate Brokers
Anchor Realty
231.759.7727
Capstone Real Estate
616.847.1031
Coldwell Banker Woodland Schmidt
616.850.1121
Encore Market Realty Advisors
616.638.8844
Greenridge Realty
616.935.3500
Grubb & Ellis
616.744.3500
Prudential Clyde Hendrick
616.842.5670
ReMax of the Lakeshore
616.638.3900
Signature Associates
231.578.2508
S.J. Wisniewski
616.846.0620
31
C O N TA C T S THOSE READY TO SERVE YOU
Grand Haven Main Street Core Business District
Development Authority (MSDDA)
Contact: Dana Kollewehr, Director
20 N. 5th Street
Grand Haven, MI 49417
616.844.1188
616.844.1921 (Fax)
dana@Core Business Districtgrandhaven.com
www.Core Business Districtgh.com
Chamber of Commerce
Grand Haven, Spring Lake, Ferrysburg
Economic Development
Contact: David Miller
One South Harbor Drive
Grand Haven, MI 49417
616.846.3153
616.842.0379 (Fax)
dmiller@grandhavenchamber.org
www.grandhavenchamber.org
City of Grand Haven
Contact: Pat McGinnis, City Manager
519 Washington Avenue
Grand Haven, MI 49417
616.847.4888
616.842.0085 (Fax)
pmcginnis@grandhaven.org
www.grandhaven.org
City of Grand Haven Building and Planning
Department
Contact: Sam Janson
20 North 5th Street
Grand Haven, MI 49417
616.847.3490
616.844.2051 (Fax)
sjanson@grandhaven.org
www.grandhaven.org
32
CITY TIMELINES FOR PLANNING
D E PA R T M E N T
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CITY TIMELINES FOR PLANNING
D E PA R T M E N T
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CITY TIMELINES FOR PLANNING
D E PA R T M E N T
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CITY TIMELINES FOR PLANNING
D E PA R T M E N T
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CITY TIMELINES FOR PLANNING
D E PA R T M E N T
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CITY TIMELINES FOR PLANNING
D E PA R T M E N T
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CITY TIMELINES FOR PLANNING
D E PA R T M E N T
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CITY TIMELINES FOR PLANNING
D E PA R T M E N T
40
CALENDAR OF MSDDA EVENTS
SPONSORSHIP & VOLUNTEER
I N F O R M AT I O N
2013–2014 MSDDA Events:
January: Wine about Winter
February: Frozen in Time
End of February– Early March: Grand Haven Restaurant Week
March: Girlfriend‘s Weekend
August: Sidewalk Sales
Mid-September—Early October: ArtWalk
September: Indie Rock Music Festival
October: Trick-or-Treating
November: Light Night
November: Small Business Saturday
If you are interested in being a sponsor for an event this year, please contact Dana
Kollewehr, Director of Grand Haven MSDDA, at 616-844-1188 or e-mail her at
dana@downtowngrandhaven.com.
To volunteer for an event, please see the link to our on-line volunteer application on
the Grand Haven MSDDA home page. Click on the ―Volunteer‖ link on our home
page, and the volunteer application link will be on the left side of the page.
41