COMMERCIAL
DISPLACEMENT
A TOOLKIT TO ADDRESS
and Small Business Retention/Expansion
How to use
this toolkit
This toolkit is best utilized by local governments or quasi- governmental agencies, developers, and/or businesses. The process should start by identifying at-risk areas, corridors, and/or sites.
For maximum effectiveness, the local government should identify key organizations or individuals designated to undertake implementation and evaluation of the tools. This may be a:
Local government project manager
Downtown Development Authority or Development Authority
Chamber of Commerce
Main Street program
or other community development organization.
By designating a responsible individual/organization, there can be clear accountability and evaluation on the effectiveness of programs. In consultation with the needs of the businesses and community from the surveys and interview, appropriate policies and programs may be crafted and adopted for implementation. Resources should be provided for implementation and an annual evaluation of policy and program effectiveness is recommended. Based upon the results from the evaluation, tweaks may be made to the policies and programs.
Keep track of your progress in our interactive worksheet, linked here.
Get started by selected the “I am…” and the “And I’m concerned with” categories to see specific programs that address your needs or just scroll below to see all policies and programs.
Using Geographic Information Systems (GIS) database, communities can create visual representations to categorize not at risk, susceptible, early, currently undergoing, and advanced displacement areas.
Qualitative data can assist communities to identify key concerns regarding real estate, finance, workforce, business operations, and property conditions to target initiatives.
To better understand the complexity and nuances of the business community and how local institutions and community are interconnected, communities may explore economic, social, natural, and physical assets.
With the areas identified from the mapping, surveys and interviews, communities can identify at risk commercial areas and designate special corridors where policies and programs can be implemented.
Once key areas facing commercial displacement have been identified, communities can use zoning to create urban and suburban forms that can assist in maintaining some small businesses.
A Community Land Trust is a non-profit corporation which: Buys property in a jurisdiction, Maintains a ground lease, Sells the building to an independent, locally owned business or group of business owners. When the business chooses to sell the property, the Community Land Trust repurchases it at a set price.
Communities, often through their Development Authority or other redevelopment organization, would purchase, improve, and maintain a property and restrict its leases to local businesses. The rents would be below market and typically cover the cost of owning and maintaining the building.
Communities, often through their Development Authority or other redevelopment organization, would purchase a property and sell it to a developer. The sale would be below market value with a restriction that a certain amount of the property be used to support local businesses.
By controlling the property in which they are located, small businesses do not have to manage increases in rents or lease negotiations.
As part of a Business Improvement District, Community Improvement District, or identified corridor, localities can administer a matching façade or sign grant or loan program.
A Community Benefits Agreement (CBA) is a project-specific agreement between a developer and the community which details the project’s contributions to the community.
The community can create a business or community improvement district where incremental tax revenue is reinvested into infrastructure improvements.
Communities may offer financial incentives to developers for creating space for and/or preserving local, cultural, and legacy businesses.
Communities can work with local lenders and financial organizations to address capitalization needs to support longer leases or property ownership. Communities can partner with these financial institutions that emphasize investment in these corridors.
Communities may offer a cultural or legacy business grant to support the long-term stability of those businesses.
As properties are redeveloped, there may be opportunities for businesses to return to the site or to relocate nearby.
Small businesses are under pressure more than ever to find and maintain quality employees.
Many small businesses lack the detailed and expert knowledge in the field of legal, financial, or real estate.
Local businesses rely on local customer base.
The community can designate a commercial project manager, similar to a Main Street Manager, who ensures small businesses have access to the resources they need and serves as a liaison for developers to preserve the desired small business mix.
At the crux of commercial gentrification is the changing demographics of a community.
A strong business community and identity can stave off commercial gentrification through collaborative and cooperative actions. Communities can encourage small businesses to participate in local business associations.
As available real estate changes rapidly, the community cannot easily keep up with inventory that might accommodate impacted small businesses on a temporary or permanent basis.