Northfield Downtown Development Corporation

Well, actually that plan was called the “Do Nothing” approach at Thursday’s EDA meeting. I’d call it the “Path of Least Resistance” Plan but I think the EDA members are right, if we do nothing, the retirement community for Lutheran Ministers is probaby our economic future.

The meeting was a progress report on the E. D. Plan by TIP Strategies. TIP is also known as “The Consultants from Texas” and “The Group with the $80,000 Plan”. I blogged about the topic back in July.

TIP pointed out tht there were existing market forces that were creating substantial economic development by creating housing for retired Lutheran Ministers. They suggested that this type of economic growth might not be sustainable or, by itself, desirable.

Dixon Bond shared his concern about depending on this type of approach to economic development. He said, in his opinion, it was not the way to grow the tax base. Mark Moors also had concerns. He said that he believes that our transportation infrastructure is inadequate for our current level of economic development, much less continued growth along those lines. Bill Cowles appeared ready to move beyond the “Do Nothing” approach. He said that he believes that Northfield was experiencing leakage in some service industries and these represent opportunities for economic development.

Among the competitive advantages that TIP cited for Northfield were its highly educated workforce, the education and medical industries and the authentic downtown. If you had heard some of the comments made in the initial sessions, you’d appreciate the irony in the recognition of this third advantage.

As a member of the Planning Commission, I heard a demographic report from another consultant on Tuesday night. There was an element common to both reports that caught my attention. People in the 20 to 30 year-old age group do not want to live in Northfield. The average age a of a Planning Commissioner, an EDA Member, and a hired consultant is probably north of 50. There was much speculation about what caused the outflow of 20 to 30 year-olds.

I’d suggest these folks ask someone in that age group. I have and I know the answer: “It’s boring”. Northfield offers relatively little entertainment for that age group.

We may not be able to turn the tide in this struggle. Small town life is of great appeal to people starting families or retiring Lutheran Ministers but not so much for those aged 20 to 30.

I don’t think we can ignore this group, however. At the very least, they are the entry level workers. But I think that they are much more. I think they are potentially the technical and artistic innovators that can create our economic future.

If TIP is supposed to produce an “Investment Document” for the city, I have a suggestion for them.

Build a Night Club.

On the last Saturday before Thanksgiving, the American Independent Business Alliance (AMIBA) wants retailers and consumers across the country to join in the second annual celebration of America Unchained. On November 19, consumers in communities around the country will be asked to shop only at locally owned businesses to maximize the impact of their dollars and potentially inject millions more into their local economy.

Sometimes seemingly small acts can make a big impact. Take family spending. You may think you’re just fulfilling your family’s wants or needs when you shop or dine out. Think again. The choice of where you spend your money makes a big difference to your community. Spending your money with locally-owned independent businesses puts your money to work directly helping your community’s economyjust one way your community benefits from its home town businesses. Those businesses use goods and services of other locally-owned independent businesses–circulating your money three to three-and-a-half times longer locally than if you spend it at a chain*. This creates greater community health and prosperity.

A study of 10 independent businesses and 10 chains in retail, restaurant and service in Andersonville, Illinois demonstrates independent businesses generate about 70 percent greater local economic activity per square foot and slightly more sales per square foot as chains. See the Andersonville Study by the Civic EconomicsGroup.

But there are many other reasons for keeping your money in your community. See the Top Ten Reasons to Shop Locally (Thanks to Sue DeMalignon for this link.)

* Studies in Maine and Austin, Texas demonstrate that locally-owned businesses generate 3.5 times the local economic activity as chains.

Charlie Parr entertained a sizeable gathering for two very satisfying hours at Hogan Brothers Saturday night. He played both the steel guitar and banjo, showcasing traditional and original songs. If you closed your eyes, you might have thought that you were listening to Harry Smith’s Anthology.

I was squeezed into a booth with a half dozen local musicians who were tapping their feet and slapping their thighs. It was a real treat to hear a talent like Charlie without having to make a long drive and we really appreciated Hogan Brothers for bringing something special to downtown Northfield.

One of my companions wondered when Hogan Brothers might bring Spider John Koerner to town. How about it?

For the Star Tribune article see: http://www.startribune.com/stories/457/5693050.html

Ollie Garrison is one of the elite St. Olaf students selected to be a part of the College Board of Business Consultants. His project is to work with Mendota Homes and the NDDC on a Cooperatively Developed Plan for what has been referred to as the “Arts Building”. Ollie is looking at market studies, housing studies, demographic information and economic information as well as talking with a number of community leaders to pull together data with which to develop the plan.

Last Friday, Ollie travelled up to St. Paul to meet with the Minnesota Housing Finance Agency to participate in a preliminary presentation of the project.

It’s a complicated project; it’s what is known as “mixed-use”, combining residential space with commercial space. In this conceptual stage, it is envisioned that there will be 42 residential rental units and almost 10,000 square feet of commercial studios. Ollie summarized by saying “At this point in my research, all findings are good and all indications are supportive of this proposed project”. The guy’s a natural.

After the meeting, Ollie visited a Mendota Homes development in Lowertown known as Lot 270. He looked quite at home in one of the loft units. Perhaps he’s got plans for after graduation.

Over 40 people showed up to the Acher House to hear Bruce Schwartau of the University of Minnesota Extension Service discuss strategies for small store success in an increasingly competitive retail marketplace.

He opened his presentation with findings from customer surveys that have been conducted in other small towns throughout Minnesota. He compared the retailers’ view of their businesses with that of their customers’ views. He pointed out that many retailers make assumptions about their customers that are not always accurate.

Bruce suggested that marketing is one area of merchandising that most retailers are weakest. He suggested “shopping” the low cost competitors to better focus and price your products. As many of those retailers present this morning already know, the smaller stores can often most effectively compete on quality and service or product selection and staff knowledge.

Bruce also suggested that Northfield could get more leverage out of the trememdous asset that our downtown provides our retailers. He suggested that downtown Northfield provides one of Minnesota’s most pleasant shopping experiences. We should cooperatively market it as such.

Of course, Bruce reminded folks about having consistent hours. Afterwards, he said if we could get 80% of the attendees to commit to doing something different or new to increase sales for the downtown district, it would be considered a great accomplishment.

Nov. 10 update: Here’s the PDF of Bruce’s Small Stores Succss Strategies PowerPoint outline. Click to view it with your web browser or right-click to download it to your PC.