Vibrant Downtowns Key to Community Development

Prior to World War II, many communities in the U.S. were centered around downtowns for living, shopping, entertainment and work. The quintessential downtown was typically home to a bank, a post office, government offices, a library, clothing stores, a music store, a cinema, a grocery and a diner. Most of the buildings offered apartments on the second, third and fourth floors. Downtowns were the hearts of communities.

Since the post-war suburban boom, downtowns have changed and continue to evolve. With the emergence of shopping centers, malls, one-stop shops and improved transportation, many of the small businesses lining the downtown streets have been forced to close. Downtowns all over America lost that spark that made them special, some turning into local government offices, some with a few shops and a lot of boarded buildings. In some places, they have been completely abandoned as neglect and apathy took over. In the age of 70 mile per hour highways, constant sales and advertising, Internet shopping, and an always-on-the-go mindset, the glory days of downtowns are lost on many.

Many communities, however, have not given up on the importance of downtowns in community development. Many of these communities have joined Main Street America, an organization dedicated to revitalizing downtowns in a way that does not damage the historic integrity while ensuring economic vitality. Many communities in Ohio including Cleveland, Delaware, Greenville, Medina, Portsmouth, Van Wert, Wooster and others have become accredited Main Street America programs. The Main Street Approach is used by member programs to provide structure and stability to the revitalization efforts of downtowns. The approach includes inputs, transformative strategies and outputs.

Downtowns - Jones 2016-08-04

Jeff Speck, an urban planner and designer, has determined that the singular factor of community success is walkability, which is best accomplished in the downtown area of communities. In his 2012 book, Walkable City: How Downtown Can Save America, One Step at a Time, Speck writes, “The General Theory of Walkabilty explains how, to be favored, a walk has to satisfy four main conditions: it must be useful, safe, comfortable, and interesting.” Speck explains how decisions have long-lasting and far-reaching effects and what decisions need to be made to have such effects on downtowns.

Walkable City - 2016-08-04Communities across the nation have seen the positive impacts a thriving downtown has on community development. If you believe your downtown could use a little TLC, suggest to your community development leaders consider strategies for revitalizing your downtown.

Revitalizing downtowns is not a ‘flavor of the month’ experiment, but rather a proven means to developing communities and stimulating local business. Additionally, revitalizing downtowns into walkable community areas will improve community health.

Check out Speck’s books and his TED Talk, contact Main Street America, and be sure to look over the variety of ready-to-use tools created by OSU Extension, UWEX, and University of Minnesota Extension that can be used to create vibrant downtowns.

Caitlin Jones is the Program Coordinator for OSU Extension Community Development in Van Wert County & the Maumee Valley EERA.

Financing Entrepreneurship and Business Expansion

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In 2015, the Van Wert City Revolving Loan made five loans totaling over $252,000, which supported the creation of 12 jobs.

Entrepreneurship is a critical component of any community. So, how can we support entrepreneurial growth? One tool available to communities interested in helping entrepreneurs start businesses and facilitating the expansion or relocation of existing businesses is a Revolving Loan Fund (RLF). The principal goal of the RLF is to create and retain private sector jobs, of which 51 percent must be held by persons from low-to-moderate income households. Applicants must document job creation for any RLF money borrowed and one (1) full time equivalent job must be created for every $25,000 increment borrowed. Applicants have two years to fulfill the job requirements. Loans can be made to businesses for land and building acquisition, new construction, building renovations and improvements, machinery and equipment purchases, and working capital. Loans involving construction and building renovations and improvements are subject to national prevailing wage requirements should the labor exceed $2,000.

This program allows businesses to secure fixed low interest rate loans. Two types of loans exist: Economic Development loans and Micro loans; however, each community may not offer both loan types. Most businesses apply for an Economic Development loan, which is a combination of owner equity, private funding (bank loan), and RLF money, to secure their project financing. Economic Development loans can be made for up to 50 percent of the project total. The Micro Loan option allows for RLF money to be the sole funding source for businesses with five or fewer employees undergoing projects less than $35,000 and capable of meeting the income requirements.

For more information, please visit the Ohio Development Services Agency Community and Economic Development Programs page. Communities interested in starting a revolving loan fund should review the information on the PY 2016 CDBG Community Development Program Notice of Funding Availability (NOFA) and Training Forum announcement and submit their application by Friday, June 17, 2016.

(Submitted by Caitlin Jones, Program Coordinator, Van Wert County & Maumee Valley EERA)

Financial Literacy and Entrepreneurship: Helping high school seniors consider a future in small business

With only a few weeks of school to go before graduation, Van Wert City School seniors were offered yet another option to consider for their future:  becoming an entrepreneur and owning their own business.

Members of the Van Wert City Schools senior class are required to take Senior Government which includes a segment focused on Financial Literacy within the overall curriculum. The Financial Literacy portion of the class offers several aspects of personal finance, from car loans to credit cards. Missing in the program was an opportunity that involved owning your own business. Last year, Ohio State University Extension and the Wright State Lake Campus Business Enterprise collaborated with school administrators to teach students about starting their own business.

Van Wert HS EntrepreneurshipWith the program finishing its second year, Senior Government teacher, Bob Priest, was again impressed with the students’ interest and excitement about owning their own business. “Van Wert High School government students had the good fortune of participating with two universities at the local level for a three-day introduction to entrepreneurship, business planning and financing,” stated Priest. “I was impressed with the ideas the students created for the betterment of Van Wert, and then they had to put the numbers to their business plan. That was the difficult part. I think students now have a better understanding of how expensive and time consuming it can be to own a business.”

The program involved personal entrepreneurship assessments, identifying local market opportunities, and creating a business plan. In addition to a visit from local entrepreneur and business owner of Firehouse Pizza in Middle Point, the students learned about start-up expenses, on-going operating costs, pricing and break-even analysis.

Post-program evaluation results indicated that 98% of the students felt the program was suitable for graduating seniors and 95% recommended Van Wert High School continue to offer the program. Surprisingly, 48% of the students responded they would be interested in owning their own business in the future. “Because of this, I may now think about starting my own business while I may not have wanted to before,” remarked one of the participating students.

(Submitted by Cindy Leis, County Extension Educator, Van Wert County & Maumee Valley EERA and Van Wert City Economic Development Director)

High School Seniors explore another Path to their Futures

Van Wert HS Starting Right for the Student Workshop 2014 - #2Where have nearly two of every three new jobs come from since 1995? That would be small businesses, according to the SBA and U.S. Census. How can we stimulate entrepreneurial interest? How about a special workshop for getting high school seniors interested in and thinking about their futures as entrepreneurs and business owners? Such an effort was recently conducted with Van Wert High School seniors, 53 percent of which indicated, at the program’s conclusion, an interest in owning their own business sometime in the future.

For more information about the program and to read about the pilot project at Van Wert City Schools, click here.

(Submitted by Cindy Leis, County Extension Educator and Van Wert Economic Development Director)