STRATEGIC FRAME WORK FOR COMMERCIAL REVITALIZATION


Part II of an Exploratory Study to Establish a Special Improvement
District on Springfield and South Orange Avenues, Newark, NJ

Report to the Corinthian Housing Development Corporation and New Community Corporation

May 11, 1998

Methodology

Our group began its research, first, with a survey of operations in New Jersey's Special Improvement Districts. We distributed 31 copies of the survey, and 23 districts responded. Appendix A of this report includes a copy of the survey. Appendix B includes a database of the survey results. Second, we completed a literature review on Business Improvement Districts nationwide. Both of these efforts provided us with a foundation knowledge of SIDs as well as a wealth of illustrative examples. However, we felt that a closer look at a number of SIDs would provide more insight both into district operations and into the organization process that precedes their establishment.

In choosing case study districts, we first generated a list of conditions that are descriptive of the West Side Park area:

We then selected SIDs which addressed one or more of these conditions. For example, we chose the Grand Street BID in East Williamsburg, New York because of the strong involvement and role of a nonprofit organization, the St. Nicholas Preservation and Development Corporation. St. Nick's was the impetus behind the SID's formation and continues to provide office space, shared secretarial services, and other assistance to the district. Grand Street also operates with a one-man staff and serves a primarily neighborhood-based market. In addition, Grand Street merchants and property owners have similar goals to their West Side Park counterparts. They have chosen streetscape improvements and image/identity issues as their priorities.

We studied the Downtown Trenton SID because it operates with a minimal property assessment, 4.5% of a structure's property taxes. The Trenton example also demonstrates the evolution of a district from an earlier organization and revitalization effort. The SID developed from the existing Trenton Merchants Association. Many of the owners we interviewed felt that the positive efforts of the association created a solid foundation for and trust in a larger, more concentrated cooperative effort. Trenton merchants were also looking for a stronger voice in city hall, and they believe the SID provided a vehicle for that voice.

We also chose districts that would best illuminate the organization process. This process is critical to any revitalization effort, and its description will become an important part in this report. We chose to study the proposed Elizabeth Avenue SID in Elizabeth, New Jersey. Its Steering Committee is currently creating a business plan for the district, and we were able to speak with committee members, city officials who solidly support the effort, and Don Smartt, the consultant assisting with the process.

We chose the failed Fort Lee, New Jersey SID as our final case study. The proposed district suffered primarily from a lack of political support. Business and property owners were in fact supportive of the However, the mayor and City Council feared that property and business owners would view the assessment component as an additional and unnecessary tax. The Fort Lee example is indicative of the need for local political support when establishing a Special Improvement District.

We use these cases to illustrate the strategic revitalization framework discussed in Part I of this report. In addition, Appendix C includes profiles of all four districts. However, as Special Improvement Districts are not the solution for the revitalization of every commercial corridor, we felt that it was equally important to paint a picture of the strategies which may be used either in conjunction with or as alternatives to the SID structure. We have also researched local, state, and federal resources available to revitalization organizations in the City of Newark.

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