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Downtown Revitalization and Business Assistance Project – 2012/13

PROJECT NARRATIVE

1. Need, goals and objectives

Overview

The Delaware Economic Development Office (DEDO) seeks a USDA Rural Business Enterprise

Grant (RBEG) to increase its reach and impact in the state through the Downtown Revitalization

and Business Assistance Project – 2012/13 (DRBAP) by offering business development and

related downtown revitalization capacity-building services to existing and emerging

entrepreneurs, town representatives, and revitalization staff and volunteers within twelve rural

towns in rural Delaware.

Need Ten of the twelve towns targeted for this project are located in Kent and Sussex counties, the two

counties that exhibit the lowest unemployment rates of the three counties in Delaware: As of

February 2012 Sussex County had the state’s highest unadjusted jobless rate, at 8.2 percent,

followed by Kent (7.7 percent) and New Castle (7.3 percent).1 The other two towns targeted for

services are located in rural portions of New Castle Delaware. (See Attachment A, Page 15 for

map of the state that identifies the twelve communities.) All communities fall under a population

of 50,000. The average median household income (MHI) of these twelve communities

(combined) is $48,170, which is under the USA MHI of $51,914, and is further under the

Delaware MHI of $57,599.2

Translated into the rural downtown environment, one will often see generally higher rates of

vacancy, struggling businesses due to the “down” retail sales climate, and lower rates of

investment and property development in areas of higher unemployment. Such is the case in

Delaware. Thus, the support and development of programs that will create and enhance

environments, or ecosystems, that will support entrepreneurship and foster small business

development in rural areas is critical.

We believe that the prosperity of Delaware’s rural downtowns where retailers and entrepreneurs

can thrive is a key element in supporting and building the economic health of the community,

and further, stands to support the economic health and increased quality of life throughout

Delaware. It is an opportune time for aggressive measures to build both a downtown

environment that is conducive to residents, shoppers, and visitors, and to and build the capacity

for success of entrepreneurs in those downtowns. Further,

“As the successes become more visible and prove that value-creating entrepreneurship

can and does happen anywhere and everywhere, the cultivation of a conducive ecosystem

will not be a “nice-to-have” opportunity but a “must-have” necessity. Citizens

1http://www.bls.gov/ro3/delaus.htm (See ATTACHMENT F)

2 http://quickfacts.census.gov/qfd/states/10000.html

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everywhere will expect and demand the equal access to the possibility of prosperity that

entrepreneurship can provide.” 3

In short: it is not only an opportune time, but it is a critical time to develop increasingly

sustainable entrepreneurial ecosystems within Delaware’s rural cities and towns.

Goals

The Downtown Revitalization and Business Assistance Project – 2012/13 (DRBAP) is a strategy

intended to address the need to create local entrepreneurial ecosystems in rural Delaware that

will support small businesses and entrepreneurs, while enhancing the environments that will

further afford opportunities not only for those entrepreneurs, but also for shoppers, visitors,

residents to enjoy the authentic, experiential places that downtowns in rural Delaware are poised

to offer.

The strategy comprised of technical services and training to advance both small business

viability, as well as overall economic viability of, and quality of place in, the downtowns in

which the businesses are located.

The Downtown Revitalization and Business Assistance Project – 2012/13 (DRBAP) will address

three key areas:

1. Retailers and entrepreneurs in rural areas will be afforded best chances for success by

learning best practices in entrepreneurism, small business start-up and business

ownership, eCommerce, retail sales and promotion strategies, etc. Specifically, critical

training in “new economy” tactics will be offered, including utilization of technology,

innovation, and minnovation4. These kinds of tactics will bolster “brick and mortar”

sales while helping entrepreneurs identify niche products, potentially catapulting these

businesses into regional and even global markets.

2. Further, an exciting special component of this project will engage several aspiring and/or

new business owners in an incubator strategy modeled after two successful similar

projects,5 wherein lower-risk opportunities will be created to spur fledgling businesses

into the commercial environment, yet with limited risk and investment.

3. And finally, the DRBAP is intended to build capacity of those community leaders that are

responsible for creating the favorable conditions in which entrepreneurs will succeed,

which will further enhance the economic vitality of downtown as well as unique,

experiential opportunities for visitors, shoppers, and residents of the community.

3 http://blogs.forbes.com/danisenberg/ (Daniel Isenberg is founding Executive Director of the Babson

Entrepreneurship Ecosystem Project and Professor of Management Practice at Babson Global.)

4 Minnovation means “small tweaks [in business practices] and excellent execution.”

http://blogs.forbes.com/danisenberg/

5 Main Street programs have successfully incorporated the “pop-up” strategy in Cambridge, MD and Florence, SC.

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Objectives:

The project targets twelve communities in rural Delaware. The DEDO has well-established

relationships with representatives of eleven of the twelve targeted communities, and seeks to

engage the one town (Georgetown) as a new Commercial District Affiliate, which will establish

local contacts and engage community stakeholders into a process that will guide local business

development and community revitalization activities. (Attachment A, Page 15)

Through this proposed program of technical assistance, USDA funds will be advancing federal,

state, and local community economic goals by:

1.) Building skills of downtown entrepreneurs at both basic and advanced levels, as well as

assisting emerging/start-ups in launching a business and/or establishing a downtown

presence.

2.) Providing a variety of training opportunities to community stakeholders that are

purposefully involved in the downtown revitalization process for their community. These

include representatives of numerous towns that are proactively and consistently

developing and implementing initiatives for stronger commercial business districts

including those that currently host a local comprehensive revitalization program (I.e.;

designated Main Street towns), and those towns that host a more abbreviated

revitalization strategy (I.e.; Delaware Commercial District Affiliate towns).

Specifically, the activities and technical assistance/training opportunities are proposed, as below:

TRAINING Target Date

SMALL BUSINESS/ENTREPRENEURIAL TRAINING:

New initiative “Pop-ups” incubator concept (training to targeted towns/merchants, engagement of towns/marketing of concept, one-on-one assistance to selected businesses, assistance toward interior decoration – paint, carpet to prepare one space in each town for occupancy; town/property owner provide cost of rent for three months)

Launch July 1, 2012

Kauffman FastTrac Entrepreneurial Training (target 10 entrepreneurs) June/July 2012

Retailer training by national retailing expert (target 50 merchant entrepreneurs) Fall 2012

3 Day eCommerce Training for small business owners (target 10 entrepreneurs) November 2012

REVITALIZATION TRAINING:

Feature Presentation (2 proposed) Target 50 downtown revitalization representatives. Sept/Oct 2012 Feb/March 2013

Main Street: Basic or Advanced Training (2 days, once/year) (target 35 downtown

revitalization representatives) Jan/Feb 2013

National Main Streets conference (New Orleans, LA, Proposed March 2012) (target

6 downtown revitalization representatives) March 2013

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The proposed strategy has been developed as a necessary series of services tailored site-

specifically and, in some cases, as a follow-on to services provided to several of these rural

towns over the past several years through DEDO’s resource center known as Downtown

Delaware. At the same time, a majority of the services are brand new, and new towns/personnel

are being introduced for the first time to these types of training opportunities.

In the past, many of these types of services were jointly funded between DEDO and a USDA

Rural Community Development Initiative (RCDI) Grant. Through these services, 21 new

businesses and 38 new jobs in seven towns were created, and 18 downtown businesses were

established, retained and/or expanded. Well over 100 individual businesses received

assistance. Further, in five recent consecutive years, 2008-2012, Delaware’s Main Street

towns have seen an average net gain of 4 new businesses and 17 new jobs in each of 6.5

towns annually, which translates to 139 new businesses and 552 new jobs for the state.6

2. Type and number of small businesses to be assisted, jobs created and retained

Targeted Business and Job Metrics:

1.) Business & Job Creation:

1. Net gain of twelve (12) new businesses and twelve (12) new jobs.

2. Six (6) aspiring/start-up entrepreneurs launch a downtown “pop-up”, which is a

temporary business in a currently vacant location, with the anticipation of three

(3) of them establishing a permanent business location in a Delaware downtown

on/by March 31, 2013.

3. Two (2) businesses are launched as an outcome of FastTrac training.

2.) Business & Job Retention:

1. Fifty (50) businesses receive assistance through group retailer training.

2. Receive an indication from at least half of those trained (propose 25) that they

have implemented recommendations from the training that have helped their

business stabilize or expand through means such as increased sales, broadened

inventory, increased customer base, successful integration of eCommerce or

incorporation of computer or other technology and/or innovation, within three to

six months of receiving said service.

3.) Businesses to be Assisted:

1. Ten (10) downtown entrepreneurs successfully complete Ewing Kauffman

FastTrac New Venture or Growth Venture programs (ten-session; 40+ hour).

2. Ten (10) downtown entrepreneurs successfully complete Ecommerce training.

3. Six (6) downtown entrepreneurs receive one-on-one assistance toward a

successful launch and establishment of a temporary “pop-up” location.

4. Three (3) “pop-up” tenants establish permanent location.

6 Downtown Delaware’s quarterly statistics 2008-2012 (DEDO)

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4.) Vacancy Reduction:

1. Target temporary occupancy in six (6) currently vacant business properties, with a

further target of permanent occupancy in three (3) of these properties by project

timeline end.

Other Metrics – Downtown Capacity-Building:

In addition to business- and job-related metrics, we intend to build capacity of

community programs/organizations whose purpose is development of thriving,

“entrepreneurially-friendly” downtowns that provide services, amenities and experiential

opportunities to residents, shoppers, visitors, tourists, etc. Such capacity-building

activities follow the Main Street model, and will include:

1. Providing a variety of training opportunities to representatives of numerous towns

that currently host a local revitalization program (designated Main Street towns),

or towns that are proactively and consistently developing and implementing

initiatives for stronger commercial business districts (Delaware Commercial

District Affiliate towns);

2. Engaging one (1) town (target Georgetown) as new Commercial District Affiliate;

3. Engaging two (2) rural towns in technical services to prepare at least one of them

to successfully launch a local Main Street comprehensive program of downtown

revitalization within fiscal year 2014 (target Millsboro and Seaford); and

4. In order for representatives to initiate local strategies to better their downtown

business, social, and physical environment, provide:

a. Two (2) days of Main Street Four-Point Basic training inviting a

statewide audience, with an anticipated attendance of 35;

b. Two (2) Feature Presentations on Downtown Issues, inviting a statewide

audience, with an anticipated attendance of 50 at each presentation;

c. Registration reimbursement and a travel stipend to 6 (six) recipients from

among the targeted towns who commit to attending the national Main

Streets conference, for both training and networking on a national basis.

While we will target “never-before” attenders, we will strive to engage at

least one active revitalization representative from each of six of the named

towns.

Who will receive the training?

The proposed training will be provided to groups of downtown merchants, as well as

individual entrepreneurs, and to staff/volunteers of said programs, committees, and/or

towns, thereby not only increasing the local knowledge, but ensuring sustainability of the

business development and downtown revitalization concepts/practices once the services are

delivered through this ten-month program of training. While services will be held in the targeted

communities, we anticipate inviting a statewide audience wherever possible. 7

7 In the past, USDA grant-funded services have leveraged an opportunity to invite a statewide audience of

revitalization-minded individuals. For instance, over 800 individuals statewide were able to attend training from the

2008-2011 RCDI-funded activity.

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Six (6) aspiring/start-up entrepreneurs will launch a downtown “pop-up”, which is a temporary

business in a currently vacant location, with the anticipation of three (3) of them establishing a

permanent business location in a Delaware downtown on/by March 31, 2013. In order to ensure

success of this venture, roughly one third of the requested USDA funds will be used toward this

brand new “pop-up” initiative:

The development of engaging forms of marketing and promotion of the initiative,

such as a promotional site specific video (see http://vimeo.com/22863954);

Assistance with property owner for engagement/securing of space and local match

by community for three months of rent;

One-on-one business owner assistance to ensure successful launch and anticipated

establishment of permanent business beyond the three month timeframe;

Funding toward re-decoration of interior space to prepare for new tenant, with

engagement of volunteers for labor. (Note: Funding will be limited to interior

decoration and will not include exterior renovations of any kind.)

For “pop-up” models, see:

o http://www.preservationnation.org/main-street/main-street-news/story-of-

the-week/2010/pop-up-shops-generate-holiday.html

o http://vimeo.com/22863954

Further, through the proposed project, Downtown Delaware will target and expose ten (10)

“start-up” and/or established Downtown entrepreneurs to entrepreneurial training:

First, the Ewing Kauffman FastTrac New Venture and Growth Venture

programs: These programs are now being offered by only one source in Delaware

(the Delaware Emerging Technology Center, a program of the DEDO)

commenced in October 2011. It has been noted by some that this training is

arguably the best entrepreneurial training in the world.8 (Attachment B, Page 16)

DEDO’s very popular Ecommerce: Sales and Marketing training will target ten

aspiring or existing downtown entrepreneurs, and expose them to the use of

technology in order to reach a target market outside of the state and even globally.

Both of these training opportunities, encompassing approximately another one third of the

requested USDA funding, will offer entrepreneurs’ potential to hone skills and earn higher

profits will provide them a remarkable edge over those who have not been advantaged to receive

such advanced, quality training.

And finally, as designated Delaware Main Street programs or Delaware Commercial District

Affiliates, each of the towns targeted for services in this proposal currently have well-established

programs or Economic Development committees comprised of both public and private

entities/stakeholders that have the capacity to receive training on topics related to downtown

economic development, and through which they are able to engage and assist local businesses

and entrepreneurs. These and other downtown stakeholders that are formally involved in

revitalization activities will receive the remainder of the proposed services, which encompass

roughly the final third of the requested USDA funding and are focused on the Main Street Four

8 “Kauffman FastTrac strives to connect entrepreneurs to the best resources available to start and grow successful

businesses. Kauffman FastTrac program accomplishes this through a series of learning experiences, products, and

services”. For more information, visit http://www.fasttrac.org.

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Point Approach and building a downtown environment that is conducive to entrepreneurs,

shoppers, visitors, and residents. (See ATTACHMENT C, Page 17)

NOTE: See also: “Item #2. Type and number of small businesses to be assisted, jobs created

and retained”.

3. Is project a duplication of existing services?

No. The “pop-up” initiative is NOT a duplication of existing services, but rather is a brand new

initiative for Downtown Delaware. It should be noted, though, that two excellent models will be

used to launch the initiative confidently and successfully.4

While several of the remaining entrepreneurial development training and revitalization technical

services/training opportunities in this proposal have been offered previously (and with USDA

funding through the RCDI grant), the Downtown Delaware (Main Street) annual allocation from

the State legislature is at an all-time low, and new communities and entrepreneurs are being

engaged, thus the requested grant funds will provide the DEDO with opportunity to provide a

combination of basic and advanced services that, without USDA grant funds, the DEDO would

be unable to provide.

Further, it should be noted that while rural areas in Kent and Sussex counties are the primary

target audience, a statewide audience will benefit from much of the training.

4. Is project compatible with state and county planning objectives?

Yes. The Main Street model is utilized nationally and internationally and is widely considered a

“best practice” in downtown revitalization. The DEDO’s program of downtown revitalization

follows the National Trust Main Street Center (NTMSC) methodology, a proven model for

downtown/community economic development that is particularly effective in rural communities.

This process simultaneously addresses the four points of organization, design, economic

development, and promotion. (See Attachment B)

The Main Street model is designed to build public and private philosophical and financial

support, thereby drawing upon local opportunities and building community self-reliance

that leads to economic development of the community’s commercial district. Local

designated Delaware Main Street programs are grassroots-driven, comprised of public and

private partners, and are led by one paid manager. Delaware Commercial District Affiliates

reflect the Main Street model, but are a smaller scale, with more limited resources, and are

comprised of a committee that is generally volunteer-driven by local stakeholders, with formal

representation by at least one representative of the municipality.

Currently, there are eight designated Main Street communities in Delaware, with several others

aspiring to that status. Nine “Commercial District Affiliates” are in the “pipeline” for

consideration for future designation. Delaware’s Main Street programs have enjoyed longevity of

as much as 15 years and rarely disintegrate once they commence, thus sustainability of purpose

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is implied with adherence to the Main Street model. Training by staff of the NTMSC and its

affiliated consultants ensures that practices taught are current, reasonable, and highly practical

for use with downtown professionals and lay persons (grassroots, volunteers) alike.

5. Demographic information to include population, median household income, and

unemployment

The project/services will be targeted within the twelve Delaware communities exhibited in the

table below.

NOTES regarding information in table below:

All communities fall under a population of 50,000.

The average median household income (MHI) of these twelve communities (combined)

is $48,170, which is under the USA MHI of $51,914, and is further under the Delaware

MHI of $57,599.

The average MHI of the ten communities (combined) in Kent and Sussex counties alone,

is $45,731.

The $60,354 MHI of the two communities (combined) in New Castle county hovers just

above the Delaware MHI of $57,599.

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SOURCES: Population: http://quickfacts.census.gov/qfd/states/10/10001.html Unemployment Rate: http://www.bls.gov/ro3/delaus.htm (See ATTACHMENT F)

Median Household Income: http://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ACS_10_5YR_B19013&prodType=table and http://quickfacts.census.gov/qfd/states/10000.html

6. Evidence of leveraged funds and/or in-kind contributions

Because this training is so vital to our state, and because it is being offered at a critical time

(“down” economy, record-high unemployment), it is important to note that the DEDO has

committed to provide 42% of the funding required to deliver these services, which are critical

technical services (entrepreneurial and retailer training, Ecommerce, group retailer training), new

initiatives (“pop-up” project), and opportunities for a more expanded slate of training and

breadth of services that DEDO would NOT be able to provide without USDA assistance.

USDA’s proposed assistance would account for 58% of the total project budget.

Further, while the targeted “recipient” towns have human capacity and desire to receive these

services, they do not have funding to pay for them, and therefore would not be able to

Status Town County Population

Unemployment Rate

Median HH Income

Designated Main Street Delaware City

New Castle 1,695

7.3

$53,229

Aspiring Main Street Designation Delmar

Sussex 1,579

8.2

$34,740

Designated Main Street Dover

Kent 36,047

7.7

$46,195

Aspiring Main Street Designation Georgetown

Sussex 5,113

8.2

$42,905

Aspiring Main Street Designation Harrington

Kent 3364

7.7

$44,974

Designated Main Street Milford Kent/Sussex 8,103

7.7/8.2

$44,982

Aspiring Main Street Designation Millsboro

Sussex 2,694

8.2

$46,045

Aspiring Main Street Designation Milton

Sussex 2,017

8.2

$41,076

Designated Main Street Middletown New Castle 18,871

7.3

$67,500

Designated Main Street Rehoboth Beach

Sussex 1,264

8.2

$66,250

Aspiring Main Street Designation Seaford

Sussex 7,146

8.2

$36,250

Aspiring Main Street Designation Smyrna

Kent 8,087

7.7

$53,896

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independently undertake them without the USDA RBEG assistance, which is further enhanced

by the DEDO funding.

To summarize, the DEDO has committed to providing $12,200 toward the requested $16,800

from USDA (for a project total of $29,000), which represents an approximate 2:3 match.

* IMPORTANT NOTE:

If USDA RBEG funds are available in excess of what is requested within this application,

DEDO would be willing to engage 1 additional town for the “pop-up” initiative for every

$2,000 USDA RBEG funding (beyond above requested amount), in which would be matched

by DEDO funds of $1,000, for up to three towns.

Thus, DEDO could engage up to three additional towns in the pop-up initiative, for an

additional $6,000 in RBEG funds, which would be matched by a total of $3,000 in DEDO

funds. Thus six towns would be engaged in the pop-up initiative.

7. Project Budget to show detailed line item breakdown and all sources of funding

TRAINING Target Date DEDO Funding match

RBEG

Funding

SMALL BUSINESS/ENTREPRENEURIALTRAINING:

* New initiative “Pop-ups” incubator concept (concept training to targeted towns, merchant training, engagement of three towns/marketing of concept, one-on-one assistance to selected businesses, assistance toward interior decoration – paint, carpet to prepare one space in each town for occupancy; town/property owner would share cost of rent for three months)

Launch July 1, 2012

3000 6000

Kauffman FastTrac Entrepreneurial Training June/July 2012 500

Retailer training by national retailing expert Fall 2012 2000 2100

3 Day eCommerce Training for small business owners November 2012 2000 2000

REVITALIZATION TRAINING:

Feature Presentation (2 proposed) Sept/Oct 2012 Feb/March 2013

1200 1200

Main Street: Basic or Advanced Training (2 days, once/year) Jan/Feb 2013 1000 2000

National Main Streets conference (New Orleans, LA, Proposed March 2012) Registration for 6 @ $500 ea and travel stipend for 6 @ $500 ea March 2013

3000 3000

TOTAL

12,200 16,800

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8. Commitments from Businesses to include start-up and expansion

There are limited funding commitments necessary from businesses for DEDO’s training

opportunities, as, DEDO has made a commitment to offer high-quality training a low or no

monetary cost to recipients who are already struggling in this protracted economy. The primary

investment is that of time for training. For instance, approximately 40 hours are required for

FastTrac; 20 hours for Ecommerce; 5-10+ for group/one-on-one assistance, plus time to

implement initiatives.

9. Applicant’s experience in administering economic and community development

Programs

Since 1994, the DEDO’s program or downtown revitalization has effectively assisted downtown

revitalization/ economic development efforts in seventeen of Delaware’s historic downtowns.

Further, representatives of over half of Delaware’s Commercial Business Districts have attended

the many training opportunities that DEDO has provided over the past three years.9

DEDO has successfully administered several USDA Rural Development grants previously,

including RBEG, RBEG, and RCDI, totaling in excess of $300,000. Through these funds, not

only were services offered that were beyond the scope of DEDO’s typical ability to provide, but

USDA funding advanced the creation of a very comprehensive “menu” of retention and

recruitment services that specifically focuses on downtown business development: recruiting,

retaining and expanding businesses; building stakeholder consensus; stabilizing “at risk”

merchants, and addressing vacancy issues in rural towns. An overarching principal of these

services is to build local capacity of local towns’ volunteers and staff. (See also “Objectives”

under Item 1. Need, goals and objectives, Page 4, for outcomes of most recent USDA-funded

activities.)

The coordinator for the proposed project will be Diane Laird, State Coordinator for Downtown

Delaware, a program of the DEDO. Ms. Laird has been with the Delaware Economic

Development Office, and dedicated solely to the Main Street State Coordinating position since

1998. She currently serves on the Executive Committee of the National Trust Main Street

Center, and represents the northeast region. Ms. Laird and speaks regularly on topics of

revitalization (business development, vacancy reduction, organizational and strategic planning,

etc.) and has been a speaker at the National Main Streets conferences for the most recent five

years. In May 2009, Ms. Laird was awarded the Delaware Award for Excellence and

Commitment in State Service for “Innovative Ideas in Downtown Revitalization, including

9 The mission of the Downtown Delaware program is “to provide Delaware’s historic commercial districts with the

tools to promote economic stability in business and workforce and to retain and enhance their downtown’s unique

sense of place.” The mission of the Delaware Economic Development Office (DEDO), is also a natural fit with the

program by assisting small and minority-owned businesses, promoting and developing tourism, attracting new

investors and businesses (both within and beyond the state), and increasing employment opportunities, with

particular emphasis toward developing small-, women-, and minority-owned businesses. Thus the mission and

purpose of DEDO’s method for “helping downtowns to help themselves” is compatible with state planning

objectives and also supports USDA Rural Development’s objective to help “rural individuals, communities and

businesses obtain the financial and technical assistance needed to address their diverse and unique needs.”

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Entrepreneurial and Small Business Development”. Diane holds a Masters Degree in Urban

Affairs & Public Policy from the University of Delaware (June 2000).

SCOPE OF WORK

(a) The specific purpose for which grant funds will be utilized, i.e., Technical

Assistance, Revolving Fund, etc.

The “Downtown Revitalization and Business Assistance Project – 2012/13” (DRBAP – 2012/13)

is primarily a program of technical assistance, with an additional minor component of downtown

commercial property decoration (paint, carpet, etc.) to prepare several interiors (i.e.; paint,

carpet) of downtown properties for commercial occupancy.

NOTE: Exteriors of buildings will not be affected.

(b) Timeframes or dates by which action surrounding the use of funds will be

accomplished.

June 1, 2012 to March 31, 2013

(c) Who will be carrying out the purpose for which the grant is made (key personnel

should be identified).

See PROJECT NARRATIVE, Item 9, for DEDO staff dedicated solely to the proposed project.

The proposed training will be delivered by qualified consultants that are experts in the nation on

the topics of business development in rural communities. (See Attachment D, Page 19)

(d) How the grant will be accomplished.

The proposed training will be provided by qualified consultants (For details See Item #8.), both

to groups of downtown merchants, as well as to staff/volunteers of said Main Street programs

and Commercial District Affiliate committees.

All activities will be completed within the ten month time-frame of June 1, 2012 – March 31,

2013.

Because the DEDO believes that the primary component of a healthy downtown is a strong

business mix, approximately two thirds of the technical services/training and initiatives will

address economic development and entrepreneurial/small business components. Nevertheless,

training in business development is not offered to the exclusion of other important elements such

as creating a strong local revitalization program (strategic planning and organizational

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development), a pleasing downtown environment (design), and image promotion, marketing and

advertising (promotions). Thus the remaining third of the proposed project addresses the latter.

In previous years, Downtown Delaware has delivered one-on-one and group retailer training and

consultation to +/- 250 downtown business owners. Similar services are targeted and needful,

particularly in this contracted economy. In addition, statewide group training events that stand

to directly and indirectly overall economy of the downtown are proposed whereby small business

owners stand to become more profitable and downtowns in general stand to benefit by enhancing

their assets, and creating more business-friendly environments. Topics could include business

recruitment incentives and packages, more efficient licensing/inspections procedures, cross

promotion of businesses, promoting downtown via new community brands, etc.

Specific training will include:

A new DEDO program: Development of a “pop-up” program, a strategy of establishing

temporary community incubators as a “stepping stone” to establishment of fully

operational, permanent businesses. This program would include technical assistance by a

qualified retailing expert to ensure success of the temporary business concept, and then

sustainability of the business in the downtown, as well as investment of funds toward

decorating a space and readying it for occupancy.

NOTE: this “pop-up” program also addresses vacancy-reduction

Kauffman FastTrac training for entrepreneurs: New Venture or Growth Venture

programs

Small business/retailer workshops (by nationally known retailing expert)

Ecommerce: Sales and Marketing for entrepreneurs

Nevertheless, training in business development is not offered to the exclusion of other important

elements that are vital to addressing critical, emerging needs of towns and facilitation of strong

downtown revitalization programs. These topics follow the Main Street model, and will be

selected from areas of focus, such as:

creating a strong local revitalization program (strategic planning and organizational

development)

ensuring strategies to create an aesthetically-pleasing downtown environment (design)

image promotion, marketing and advertising (promotions)

See matrix below from among which topics for Feature Presentations, etc. would be

selected:

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ORGANIZATION: PROMOTION:

Mission Development/Vision Planning

Strategic Planning/ Work Planning/ Board Retreats

Fundraising & Public Relations

Membership & Volunteer Development

Promotion and Marketing

Developing Marketing Plans

Retail Advertising

Tourism Development

Image Development/Branding

Special Event Planning

Community Branding

DESIGN: ECONOMIC RESTRUCTURING/BUSINESS DEVELOPMENT:

Downtown physical assessments and planning for

targeted design assistance

Renewable energy; energy efficiency, and sustainable

design

Design assistance: on-site consultations with

downtown property and business owners, with

committee personnel in training “learn by doing.”

Preparation of façade drawings/specifications

Streetscape and Landscape Design

In-Fill Construction

Establishing Design Guidelines

Managing Parking and Traffic

Working with Local Zoning and Building Codes

Business retention, expansion, and recruitment training

Matching prospective businesses with vacant downtown

buildings

One-on-one confidential business consultations

Strategic Retail Merchandising Plans

Developing Building and Business Inventory

Real Estate Development

Retail Merchandising

Incubator Development

Community Initiated Development

Upper Story Housing

Downtown Commercial Vacancy Reduction

(e) Documentation regarding the availability and amount of other funds to be used in

conjunction with the funds from the RBE/Television Demonstration program.

See Attachment E, Page 23.

(f) Does this grant involve a revolving fund?

No, this project does not involve a revolving loan/fund.

(g) Project Budget

In summary, the requested USDA RBEG funds total $16,800, and the DEDO will provide a

match of $12,200, for a total project budget of $29,000.

As per “IMPORTANT NOTE” on Page 10 regarding additional RBEG funds, if available:

DEDO could engage up to three additional towns in the pop-up initiative, for an additional

$6,000 in RBEG funds, which would be matched by a total of $3,000 in DEDO funds. Thus

six towns would be engaged in the pop-up initiative.

See PROJECT NARRATIVE, Item #7.

15

ATTACHMENT A

MAP IDENTIFYING 12 COMMUNITIES TARGETED FOR SERVICES

16

ATTACHMENT B

The National Trust Main Street Model

The Main Street model is utilized nationally and internationally and is widely considered a

“best practice” in downtown revitalization. The DEDO’s program of downtown revitalization

follows the National Trust Main Street Center (NTMSC) methodology, a proven model for

downtown/community economic development that is particularly effective in rural communities.

The Main Street Four Point Approach simultaneously addresses the four points of:

1. Organization

2. Design

3. Economic Restructuring or (Business Development)

4. Promotion.

The Main Street model is designed to build public and private philosophical and financial

support, thereby drawing upon local opportunities and building community self-reliance

that leads to economic development of the community’s commercial district. Local

designated Delaware Main Street programs are grassroots-driven, comprised of public and

private partners, and are led by one paid manager. Delaware Commercial District Affiliates

reflect the Main Street model, but are a smaller scale, with more limited resources, and are

comprised of a committee that is generally volunteer-driven by local stakeholders, with formal

representation by at least one representative of the municipality.

Delaware’s Main Street programs have enjoyed longevity of as much as 15 years and rarely

disintegrate once they commence, thus sustainability of purpose is implied with adherence to

the Main Street model. Training by staff of the NTMSC and its affiliated consultants ensures

that practices taught are current, reasonable, and highly practical for use with downtown

professionals and lay persons (grassroots, volunteers) alike.

For more information:

http://www.preservationnation.org/main-street/about-main-street/

17

ATTACHMENT C

Delaware Emerging Technology Center: An Affiliate of Kauffman FastTrac

Offering These FastTrac Programs

FastTrac® NewVenture™ - For aspiring and early stage entrepreneurs

Jun 18 — Jul 26, 2012 Learn More

FastTrac® GrowthVenture™ - To help existing entrepreneurs improve their business

Jun 18 — Jul 26, 2012 Learn More

See next page for descriptions…

18

FastTrac® NewVenture™ - For aspiring and early stage entrepreneurs

Jun 18 — Jul 26, 2012

The FastTrac New Venture program is for entrepreneurs, innovators and all serious applicants

looking to evaluate a business concept, start their own new business, or expand an existing

business that less than three (3) years old. The classes will meet every Monday and Thursday from

Noon to 4pm for five weeks. We are beginning to receive and review applications now.

However, please be aware that the Class schedule is tentative and has not been confirmed!

"Outstanding program. Excellent opportunity to learn/identify methods for success- To think like an

Entrepreneur- To weed out what isn’t working or working yet. To expand thought process to strategize

for growth and provide the tools to continue the vision."

"Entrepreneurs do not succeed alone. They need a network for success, experience, ways to learn

from others disappointments and successes…and tools/resources. This class is the 1st I have seen

which actually does that. It needs to be offered more often and to more people if you really want to

boost the economy."---FastTrac New Venture Graduates

FastTrac NewVenture, specifically for entrepreneurs in the early stages of business development,

provides the tools to develop your business concept, determine the viability of the business concept,

and outline the critical steps to a successful business launch.

FastTrac® GrowthVenture™ - To help existing entrepreneurs improve

their business

Jun 18 — Jul 26, 2012

The FastTrac Growth Venture program is for existing businesses who are looking to grow or expand,

that are at least 2 years old and have accrued at least $200,000 in revenues. The classes will meet

every Monday and Thursday from 5 to 9pm for five weeks. We are beginning to receive and

review applications now. However, please be aware that the Class schedule is tentative and

has not been confirmed!

"The course content and materials were very effective. The use of outside speakers was really

valuable. Online tools were great. Class Facilitators were really good. Small group activity was very

effective."

"Overall the course was great! The dialogue was very rich. It helped me see that I am on the right

page. I would recommend anyone that needs to grow or understand their own business to take this

course."

"Excellent, real world information. Inspiring."---FastTrac Growth Venture Graduates

Apply Now!

FastTrac GrowthVenture provides the tools and support to carefully review and evaluate important

aspects of your business, explore next stage growth and opportunity, and reshape your existing

business for future profitability and improved business performance.

19

ATTACHMENT D

Lauren Adkins, Assistant Director for Field Services, National Trust Main Street Center

Lauren Adkins began working for the National Trust Main Street Center in 1991. Her work at

the Center currently focuses on brand management, partnership development, and managing the

Center’s consulting services division, including marketing, staff supervision, budgeting, and

client relations. Ms. Adkins is a regular conference speaker and continues to provide consulting

and training services. She has worked with hundreds of communities in 38 states, plus the

District of Columbia, Canada, U.S. Virgin Islands, and Singapore. Ms. Adkins has served as a

faculty member at various Main Street conferences and workshops, speaking on topics such as

retail promotion, volunteer management, fundraising, market analysis, and strategic planning.

She has authored several articles for Main Street News and served as a guest lecturer for Catholic

University and George Washington University.

Ken Anderson, Director, Entrepreneurial and Small Business Support, Delaware Economic

Development Office

Ken Anderson has been with the Delaware Economic Development office since 2007 where he

created the existing core of Entrepreneurial and Small Business Development programs

including launching of the Delaware Emerging Technology Center (ETC) virtual incubator, the

ETC Boot Camp and Business Plan Competition, the ETC Secrets of Success Seminar Series, the

DEDO GrassRoots Plus Program, the Delaware Kauffman FastTrac Entrepreneurial Training

program for new and expanding businesses, as well as launching the first Governor’s

Entrepreneurial Business Conference where he acts as Chair, the Delaware Small Business

Summit focusing on minority and women owned businesses and Chair of two Delaware Base

Realignment and Consolidation (BRAC) conferences. Ken is also Chair of the Governor’s

Supplier Diversity Council. and a Board member of the Delaware State Chamber of Commerce

Small Business Alliance Advisory Board and the Delaware Manufacturing Extension Partnership

Advisory Board.

A former Executive Vice President of a 25 year old family owned business Goeins-Williams

Associates, Inc. of Clayton, Delaware, Ken is a much sought after speaker on the “New

Economy”, Entrepreneurism and Small Business Support in the State of Delaware. In 2010, the

Delaware National Association of Women Business Owners awarded Ken the “Pioneer” award.

Ken is Board member of the Delaware State Chamber of Commerce Small Business Alliance

Advisory Board and the Delaware Manufacturing Extension Partnership Advisory Board. Ken is

a graduate of the United States Naval Academy and attended Thomas Jefferson School of Law in

San Diego, Ca.

Todd Barman, Program Officer, National Trust Main Street Center

Todd Barman is a Program Officer with more than 17 years of experience in the development

field and more than 12 years firsthand Main Street experience. Todd's expertise in market

analysis is widely recognized. As a member of the Wisconsin Main Staff, he coordinated the

market analysis technical support service and led efforts to develop the nationally recognized

Downtown and Business District Market Analysis Toolbox. Since joining the National Trust

20

Main Street Center in 2006, he has conducted many local workshops on market analysis and

other economic restructuring topics. As a national thought leader, Todd convenes discussion

groups on ways to better approach market analysis and help communities put economic

restructuring principles into practice more effectively. Todd has in-depth experience teaching all

four points of the Main Street approach and has a degree in landscape architecture.

Jim Duffy, Main Street Manager, Cambridge, MD

Jim Duffy is the Main Street Manager, for Cambridge, MD, and has successfully led two pop-up

contests, the purpose of which is three-fold: engage property owners, reducing downtown

vacancy, establishment of new/aspiring entrepreneurs into business launch or expansion in the

downtown arena. Duffy has led several educational sessions at the National Main Streets

conference, the most recent on the topic of “Downtown Pop-Ups” in 2012 in Baltimore, and has

also trained at the DE/MD regional Revitalize! Conference, in Rehoboth Beach, DE September

2010. Previous experience includes journalism.

Rick Ferrell, Business Development Specialist; Principal, Retail Market Answers, LLC

Rick Ferrell is the principal of Retail Market Answers, LLC, (RMA) which specializes in

economic planning and implementation services in accordance with “smart growth” principles.

As such RMA targets appropriate business recruitment prospects (preferred by local stakeholders

and most likely to be sustainable based on prevailing economic conditions). RMA’s economic

planning extends to “business retention” considerations preserving or enhancing the growth of

those already invested in a community. RMA provides practical and “hands on” retail business

recruitment assistance for all of its strategic planning recommendations to public and private

sector clients, alike, which includes services to more than 35 communities throughout

Pennsylvania, New Jersey, and Delaware. Rick has worked with Downtown Delaware for five

years and has worked in 90% of stated communities proposed in this application.

Donna Ann Harris, Principal, Heritage Consulting

Heritage Consulting Inc. is a certified woman-owned business in Pennsylvania and Delaware

that provides award winning consulting services and highly valued training for nonprofit

organizations and government agencies nationwide in three practice areas: downtown and

commercial district revitalization, historic preservation and non-profit organizational

development. Donna Ann Harris is the firm's principal and has more than twenty-five years of

experience as a program designer, trainer and manager in the historic preservation movement.

Anne Jacobs

Ann Jacobs has 20 years of real world experience developing, working in and working with a

broad range of businesses. It is this accumulated business history that makes her a valuable

consultant. Her experience is with companies in all stages of Growth: Existence, Survival,

Success, Take-off, Maturity and Exit Plans. In addition, she has helped struggling companies to

turn around and succeed again. Ann Jacobs has expertise in project costing and pricing, staff

training and development, project coordination, customer service, team building, contract

negotiations, and financial management.

21

Margie Johnson, President, Shoptalk

Margie Johnson, highly acclaimed speaker, trainer, author, and consultant, equips entrepreneurs

with the knowledge and skills that lead them to higher profitability and performance. Margie’s

thirty-year career as an entrepreneur and business expert has given her the experience to develop

customer-centered strategies and solutions that work. These strategies have given thousands of

businesses the competitive edge needed to survive and thrive. Margie has a cadre of local and

national accolades under her belt. She has received coverage in The Virginian- Pilot, The

Washington Post, Women’s Wear Daily Specialty Stores Newsletter, at the National Retail

Federation, and on WHRO Public Television and NBC’s Today Show. Margie received her B.S.

from East Carolina University and has completed postgraduate work at the Management

Development Institute at the University of North Carolina.

Diane Laird, State Coordinator, Downtown Delaware, a program of the DEDO

Diane Laird has been with the Delaware Economic Development Office since 1998, and has

specialized in downtown revitalization using the Main Street model. She currently serves on the

Executive Committee of the National Trust Main Street Center, and represents the northeast

region. Ms. Laird and speaks regularly on topics of revitalization (business development,

vacancy reduction, strategic planning, etc.) and has been a speaker at the National Main Streets

conferences annually since 2008. In May 2009, Ms. Laird was awarded the Delaware Award for

Excellence and Commitment in State Service for “Innovative Ideas in Downtown Revitalization,

including Entrepreneurial and Small Business Development”. Diane holds a Masters Degree in

Urban Affairs & Public Policy from the University of Delaware. (June 2000)

Ben Muldrow, Principal, Arnett Muldrow Ben Muldrow provides community branding and marketing strategies for Arnett Muldrow &

Associates. He is a talented graphic artist who specializes in community branding and identity

packages. Ben has developed branding systems for over 150 communities in more than 20

states. Ben has served on Charrette teams for the National Trust for Historic Preservation for

projects in Macon, Georgia, Arkansas Delta, Central Kentucky, Southeastern Ohio and Detroit,

Michigan and provides ongoing consultation to clients all over the southeast.

Kathy LaPlante, Program Officer, National Trust Main Street Center

Kathy La Plante joined the National Trust Main Street Center (NTMSC) staff as a Program

Officer in May of 2007. She has worked in the Main Street field since 1989. Ms. La Plante

works with organizations throughout the U.S. and has primary contract responsibilities to the

New Mexico, Oakland County, Michigan, Arkansas, Delaware, Virginia, Maryland, Wisconsin,

and Oregon Main Street Programs. Prior to joining the NTMSC she served as the Director of the

New Hampshire Main Street Center, from 1996 to 2007. She was responsible for initiating the

New Hampshire statewide, nonprofit Main Street Program, and providing comprehensive

downtown revitalization technical assistance to twenty-three designated communities. From

1989 to 1996, Ms. La Plante was the Executive Director of the Chippewa Falls (WI) Main Street

Program. In 1996, under her direction, Chippewa Falls was a recipient of the Great American

Main Street Award, recognizing it as one of the top five Downtown revitalization programs in

the country. Prior to working in downtown revitalization, Ms. La Plante spent 12 years in retail

management at Oakwood Pharmacy & Gifts in Eau Claire, Wisconsin and, for ten years, as

manager of Spurgeon’s Department Stores in Wisconsin, Minnesota, and Iowa.

22

Norma Miess, Program Officer, National Trust Main Street Center

Norma Miess comes to the National Main Street Center’s team of program officers after

successfully leading the Downtown Neighborhood Association of Elgin, one of the largest and

most diverse nationally accredited Main Street programs in Illinois. Under her leadership, Elgin

went from completing designation in 2001 to achieving Premier community status. The program

received over 20 state and local awards for improvement projects, business development efforts,

successful events, marketing initiatives, and strong partnership development. Norma’s

multicultural background is a solid asset in understanding the increasingly diverse communities.

She has been a regular national conference speaker sharing strategies to utilize the assets of

multicultural presence. Before moving her family to Texas, Norma was honored with a

Proclamation from the City of Elgin for her leadership support to the Elgin community.

Don Shandler, President, Shandler Associates

Dr. Donald Shandler is president of Shandler Associates, a consulting firm in Milton, Delaware,

specializing in the development of managers, leaders and professionals. He has extensive

experiences working with corporate, government and nonprofit organizations. And, now as a

resident of Milton he also volunteers his management, training and development and nonprofit

leadership experiences to community organizations.

Other consultants

Other consultants may include additional Program Officers of the National Trust Main Street

Center and local, regional, national consultants (often affiliated with the NTMSC) who are

recommended by one of the above and/or those who are locally and/or nationally recognized for

their expertise.

23

ATTACHMENT E

(Letter from DEDO Director confirming funds available.)

April 16, 2012

MEMORANDUM

TO: Bernice Whaley

Deputy Director

FROM: Sheri Bullock

Fiscal Administrative Officer

RE: DEDO Matching Funds for USDA RBEG (Rural Business Enterprise Grant)

The Delaware Economic Development Office has agreed to match all funds received from the

USDA RBOG up to a total of $12,200.

Main Street Funds $12,200, from fiscal year 2012 funds

If the time of the grant award is beyond June 1, 2012, the DEDO ensures that funds in the

amount of $12,200, will be committed to the project from the Tourism/Main Street Line

Item allocation from the State Legislature.

Should you have any questions or concerns please contact me.

/sb

24

ATTACHMENT F

Unemployment Rates by County in Delaware, February 2012

Unemployment Rates by County in Delaware, Not Seasonally Adjusted

Area February 2011 February 2012(P) Net Change

United States 9.5 8.7 -0.8

Delaware 7.9 7.5 -0.4

Kent County, DE 8.9 7.7 -1.2

New Castle County, DE 8.7 7.3 -1.4

Sussex County, DE 9.6 8.2 -1.4

(P) Preliminary

NOTE: Rates shown are a percentage of the labor force. Data refer to place of residence. State and

county data for both the current and prior year are subject to revision early in the following calendar

year.

Last Modified Date: April 12, 2012

SOURCE: http://www.bls.gov/ro3/delaus.htm