Main Street
CORE
A new concept for applying the Main Street model to emerging management organizations
In early 2015, the DC Department of Small and Local Business Development (DSLBD) released an RFP for grant funding to conduct a feasibility study regarding the possibility of establishing a Main Street program along Georgia Avenue NW. Martin Smith of SmithDistrict teamed up with Jon Stover & Associates and Uhuru DC on the winning proposal to conduct the study.
In addition to providing technical assistance on other areas of the project, SmithDistrict was specifically responsible for completing the analysis of the Main Street Four Point Approach as it would apply to the study area, developing a sustainable funding plan for the organization, and developing an organizational workplan.
As part of this process, a completely new interpretation of the existing Main Street Model in DC was developed. Called Main Street C.O.R.E., for "Capacity-building Organized Revitalization Effort", this model can be implemented in smaller commercial districts, or in areas where more time is needed to fully establish a new organization.
What is Main Street CORE?
The traditional Main Street community model found within the District of Columbia could be modified to create a leaner, more focused model with a substantially smaller fundraising burden, using a concept developed for a recent Main Street feasibility study for a NW DC neighborhood as “Main Street CORE”.
The “CORE” program concept is designed to function with similar overarching guidelines and best practices as a traditional program, but with a reduced budget and part time, rather than full time, staffing. “CORE” (which stands for “Capacity-building Organized Revitalization Effort”) programs would have a tailored, streamlined work plan that would focus on the specific capacity-building issues that would need to be addressed before a program could evolve into a full Main Street community.
A CORE community would theoretically be funded with a reduced Year One DC grant of $75,000, and with ongoing DC grant funding of $50,000 annually. A large portion of this cost savings is from having a part-time Executive Director as opposed to the traditional model of a full-time Executive Director. This reduced level of funding may prove to be sufficient for the needs of some communities throughout the District, and those communities may plateau at the CORE Community level. However, other neighborhoods may find that funding at this level allows them the time needed to develop a strong board, solid fiscal management skills, and community consensus needed to make the jump to the Year One Main Street grant of $200,000 and then into ongoing maintenance funding from the city.
After the adoption of the guidelines and regulations surrounding Main Street CORE Communities, DSLBD could award several organizations in several DC neighborhoods with this grant funding as a pilot project and could allow the concept to evolve organically over a period of one to three years while permitting the program to progress to a full Main Street Community at any time.
.
CORE is a model than can be replicated
The Main Street CORE process can serve as a replicable model to achieve the following as the District expands the Main Street program into new neighborhoods:
• Reduce the city’s financial risk by committing $75,000 in start-up funding instead of $200,000
• Incentivize new programs to become effective and sustainable before the District commits to increased funding
• Provide a clear path to becoming sustainable
• Create a consistent and objective process for evaluating whether a commercial corridor is ready for a traditional Main Street program, or whether a CORE program is a more viable alternative or starting point
Three different potential directions for CORE designees:
1. CORE Community that develops into a Main Street
One of the logical directions for a CORE Community to go in is to develop over time into a full-fledged "traditional" Main Street program. Using this approach, the CORE Community designation would be used as a step between a business association or community group and a Main Street designation, and by completing the Six Steps to Success (described below), the CORE Community will be well-positioned to make the move into an application for a full Main Street designation. Given this approach, the CORE Community may also wish to develop more comprehensive plans than what the CORE Concept allows for executing with an understanding that after two or three years as a CORE Community, it may expand into a larger Main Street or BID organization.
2. CORE Community that expands into CORE Plus
CORE Plus is a slightly enhanced version of the CORE Concept. CORE Plus would have an Executive Director that works 20-25 hours per week, and takes on an expanded work plan and activity schedule. CORE Plus programs receive the $50,000 sustaining grant that all CORE Communities receive, but will supplement this funding extensively with private cash contributions, additional grants, and will engage in strategic partnerships with other CORE Designees, CORE Plus programs, and Main Street programs to obtain the necessary resources to execute the work plan they have laid out. A CORE Community should be designated for at least one fiscal year before being eligible to escalate to CORE Plus.
3. CORE Community that operates in that capacity as on ongoing operation
For some communities, CORE designation may be more than sufficient to meet both the needs of the commercial corridor and also the desire of the organization's leadership.
Specifically, areas that are geographically too small to support a larger organization, specific neighborhood nodes within larger commercial corridors that have very specific needs and goals that may be different from the objectives of the larger community, and commercial areas that may serve specific demographics and populations within a community may all decide that the CORE Concept is able to meet all of the needs of the business community and that they wish to maintain CORE designation as an ongoing model to manage their commercial corridor.
Financial Summary
The Main Street CORE program would receive a $75,000 start-up grant from the District of Columbia, followed by a $50,000 annual maintenance grant. In maintenance years (all years after the initial start-up year), a CORE program requires approximately $16,000 in private contributions and $10,000 raised in events. A Main Street CORE program should target approximately $78,500 in total annual revenues after year one. Main Street CORE expenses match the expected program revenues –approximately $77,000 annually.
The largest expenditures in the Year One sample budget include salary for a part-time (10 to 12 hours per week) Executive Director ($19,650 including benefits), design work, such as a website or a business directory ($11,000), overhead and operating costs ($23,470), and marketing and outreach ($19,400).
In contrast, a full, traditional Main Street program typically receives approximately $125,000 in annual DC funding, and a $200,000 start-up grant for the first year of operation. An additional $30,0000 is raised from private donations and $40,000 via Main Street-sponsored events. In all, a typical Main Street program requires approximately $270,000 operate sustainably. A full Main Street program can expect expenses that total at least $260,000 annually.
The "Six Steps to Success" for CORE Communities
Step 1: Capacity Building
The most significant Step to Success is the first one - Capacity Building. Designation as a CORE Community is designed to provide a period of time, usually one or two years, for the organization to reach out to all of the relevant stakeholders - business owners, building owners, anchor institutions, community groups, etc - and develop a consistent vision for where the community is presently and where it needs to go moving forward. This time should be used to engage these stakeholders and organize their talents to help further develop the goals of the community as a whole.
Step 2: Organizational Structure
CORE Communities are in the earliest phases of making the shift from a community group or business association into a more formalized organization. Along those lines, the second "Step to Success" is Organizational Structure. This takes many forms, but it should include converting the organization into a 501c3 applicant or approved 501c3, developing a solid Board of Directors, and determining the appropriate Committee structure and formalizing those committees. Similarly, one of the key elements of a CORE Community is going to be hiring a part time Executive Director to serve as the administrator of the program. This can be an individual who is working for the organization on payroll or as a contractor. Under the initial concept budget, this individual is envisioned to work at approximately $25 per hour for approximately 10 to 12 hours per week, for a total annual salary of approximately $15,000. The budget does provide for an additional $5,000 as additional hourly salary, performance bonuses, or other benefits. The key objective of this Step to Success is to develop a formal organization that is prepared to pursue other funding opportunities moving forward – either ongoing funding as a CORE Community, evolving into a traditional Main Street organization, or pursuing alternate types of grants, for example foundation grants, or public art grants from the Commission on Arts and Humanities.
Step 3: Revitalization Key Concepts
The key concepts of revitalization should be addressed as a CORE designee. CORE Communities should evaluate economic development strategies that the group wishes to utilize as the commercial corridor grows and expands. While it is challenging to execute a complete restaurant and retail recruitment and retention strategy with a quarter-time staff, every effort should be made to create a full strategy or to hire an outside consultant to develop one during the CORE designation, and then prioritized to develop implementable elements that can be addressed during this time.
Step 4: Physical Quick Enhancements
While beautification efforts alone do not have the capacity to bring about long-term change, they do certainly have the capacity to show immediate impact and build confidence in the capacity of the CORE Community to get to that longer-term change. The highest priority of the CORE designee is to resolve immediate physical threats to the success of the community. This should include glass grants that resolve broken windows, especially on the first floor of properties, graffiti clean up activities and long term abatement strategy development, and instituting basic clean and safe services. Once those critical elements have been addressed, additional "quick enhancements" can be engaged. Some examples of these "quick enhancements" can include storefront paint, fall flowering bulb plantings, limited light pole banner campaigns, and aggressive 311 city services engagement.
Step 5: Connect Stakeholders
One of the other key activities of a CORE Community is communications. Designation as a CORE Corridor allows for time for the organization to conduct a thorough census of building owners, business owners and other stakeholders, and to develop communications activities with those individuals. This Step to Success should also include the development of an online presence, active social media feeds, and regular meeting schedules. The CORE designation provides an opportunity to develop these formal communication strategies that will serve as the basis for future larger workplan activities.
Step 6: Financial Development
CORE Communities start with a more basic budget grant allowance of $75,000, and in subsequent years the funding is stated at the $50,000 level. One of the key advantages of the CORE designation is that designated groups become registered as 501c3 organizations. This allows for them to implement two key fund development objectives - first, they can seek contributions from private individuals and those contributions can be considered tax deductible. This allows the CORE Community to ramp up fundraising efforts gradually to cover increasing administrative costs as the scope of the workplan the organization is undertaking grows over time. Secondly, holding a 501c3 status permits the CORE designee to seek other grant opportunities that may apply to particular activities they wish to undertake.
Final Summary
The Main Street CORE Communities Concept was developed by Martin Smith of SmithDistrict as an alternative that was part of a feasibility study to establish a Main Street program on lower Georgia Avenue, NW, and was first presented to the DC Department of Small and Local Business Development for consideration in August of 2015.
A community interested in a test of the concept is the only missing piece - while the District of Columbia has not yet committed to applying the Main Street CORE Communities Concept to any DC neighborhoods, funding the concept to move forward as a pilot project is the next logical step. Please contact Martin Smith of SmithDistrict for further information about how Main Street CORE may be able to benefit your commercial corridor.