The West Palm Beach Downtown Development Authority (DDA) Board of Directors approved four incentive programs that significantly increase the funding available to attract major new retailers and distinctive local businesses to the Clematis District. The program also provides current property owners substantial financial assistance to improve their spaces and help successful merchants who want to expand their businesses.
This proactive measure by the DDA is a vital step toward enabling Downtown West Palm Beach to effectively compete with privately owned shopping centers and malls that already utilize similar programs to attract regional and national retailers.
“The new incentive programs will help us add more quality businesses to the Clematis District’s vibrant, dynamic mix of dining destinations and retailers,” said Melissa Wohlust, executive director of the DDA. “Incentive programs are essential in most markets to create economically productive properties and to attract desired new businesses. The DDA is spearheading these initiatives to ensure that the Clematis District continues to flourish and best meet the needs of its local residents, patrons and out-of-town guests.”
Businesses seeking to apply for the new incentive programs must fit within the Clematis District merchandise mix plan, which is currently being finalized by the DDA. While owners of traditional shopping centers typically control their tenant mix, Downtown West Palm Beach – like most authentic Downtown environments – has dozens of property owners with control over their own spaces. Because it’s critical to have a shared vision for the area, the DDA is developing a merchandise mix plan, with guidance from significant market research, for the Clematis District. The plan outlines the types of restaurants and retailers that fit the persona of the District and are complementary to current CityPlace retailers. The plan also serves as a roadmap to help property owners and brokers successfully lease space.
The Tier One Incentive Program, created to resemble what many privately owned malls now offer significant prospective tenants, targets mini-anchor retailers missing from the local market. Tier One businesses, as determined by the 2007 market analysis of Downtown West Palm Beach by Lambert Advisory, can receive up to $75,000 to make their new home Downtown. The DDA has put an emphasis on attracting innovative, distinctive retailers ranging from major bookstores and home furnishings brands, to national clothing retailers, gourmet grocers and ethnic restaurants.
Because many of Downtown’s historic buildings were not designed to meet the needs of businesses today, current property owners can now receive up to $150,000 – or up to 30 percent of the total improvement cost – to improve their structures to meet today’s mechanical, plumbing, electrical and ADA compliance codes, which create a space suitable for a prospective tenant. Called the Large Projects Incentive Program, the program will award 50 percent of the grant upon completion of leasehold improvements (as determined by City officials and proof of paid invoices), and the remaining 50 percent after a bona-fide lease is signed and the tenant opens for business.
The DDA’s Retail Loan and Grant Program, which has been a vital catalyst for attracting new businesses and creating a viable and vibrant local economy for five years, offers businesses a grant up to $20,000. Owners can also apply for a loan up to $30,000. This program, which has been refined to attract targeted businesses outlined in the DDA Master Plan, is critical to provide smaller businesses such as ethnic restaurants, art galleries and boutiques the necessary capital to build out their interiors and storefronts.
The fourth program, the Business Expansion/Relocation Program, is designed specifically for existing retailers who want to expand their space or relocate within the DDA’s jurisdiction. Grants of up to $40,000 are available for successful businesses that fit within the merchandise mix plan. Funds may only be used for leasehold improvements.
“With the ever changing business environment and challenging economic climate, we must be creative and flexible in providing assistance to a variety of business needs in order to accomplish our primary objectives; to retain and attract the appropriate mix of businesses with an element of stability, to provide a sense of community and enhance the quality of life for our residence, businesses and merchants,” said Bruce Lewis, chair of the DDA Board of Directors and founder, president and CEO of LB Limited & Associates, Inc. Strategic Public Relations. “I believe our incentive programs have not only address our objectives but, in fact have created an excellent opportunity to further develop the entire Downtown District. The timing couldn’t be better with the Waterfront Development project coming on line and the new City Center complex scheduled to open soon. I’m proud of our Board of Director’s for having the insight and ability to see the big picture in making our incentive programs a high priority. The results will speak for themselves!”
Through the years, the DDA has been an active presence Downtown, creating and implementing programs and services to address the critical priorities of the Downtown corridor, which have resulted in tangible and visible improvements. For example, the DDA has spearheaded the implementation of the free Downtown trolley service; the renovation of the Rosemary Avenue corridor and Clematis streetscape; the development of the sidewalk café program; improved residential living Downtown by attracting service and retail amenities; and the creation of two workforce housing projects. The organization also has improved the quality of life Downtown by adding a private security patrol, and by collaborating with the City to implement a teenage curfew ordinance and ban nightclubs from allowing patrons under 21 years old.
