Plan Fundamentals - Encourage a Diversity of Uses

Mixed-use development can have positive impacts on economic, social, health, and environmental conditions. A balance between retail, office space, and housing can lead to greater foot traffic throughout the day as visitors come for a variety of reasons.

To generate pedestrian traffic and create a lively streetscape, many communities encourage retail shops and restaurants to open on street level, with offices and/or residences on upper floors.

Business

Activities to attract, retain, and incubate businesses can spur economic development within existing downtowns.

Communities are supporting local businesses in a variety of ways, such as:

Business Recognition Program

Recognition programs highlight businesses that make significant cultural and/or economic contributions to downtown areas. For example, businesses are recognized for completing an exceptional building rehabilitation, improving the appearance of the adjacent street, and/or selling locally produced goods.

Business Incubators

Incubators provide low-cost office space, financial assistance, and/or technical support to new businesses interested in locating in downtown areas.

Retail and Entertainment

Businesses in retail and entertainment industries can increase vibrancy and attract a broad range of visitors to an area. Though consumer shopping happens increasingly online, certain types of consumer-focused businesses are thriving.

When planning for retail and entertainment in a downtown area, communities should prioritize the following goals:

Local Ownership

"Buy Local” campaigns can encourage consumers to seek out locally owned businesses over large or online retailers when making purchases. 9 in 10 Americans shop local at least once a month, and 50% of Americans are willing to spend more to shop locally. This preference benefits the community -- 52% of a dollar spent at locally owned businesses recirculates in the region and builds the tax base, compared to only 16% for larger, national businesses.

Promote Experiences

Businesses that offer experiences rather than just products offer something that cannot be purchased online. Gyms, bowling alleys, pottery studios, escape rooms, and other hands-on businesses drive foot traffic, increasing the vibrancy of the area.

Support Tourism

To support an influx of visitors, businesses such as hotels or bed & breakfasts are necessary. Short-term rentals such as Airbnb can have negative effects on housing affordability but are helpful to encourage tourism in areas that may have a shortage of traditional hotels, so it is important to find a balance between priorities.

Housing

Providing housing options downtown increases the community’s economic vitality, as residents will patronize local businesses and help generate activity throughout the day. Retirees, empty nesters, and young professionals are all attracted to downtown living.

New housing can be built on vacant lots, historic buildings can be rehabilitated for residential use, and additional units can be added atop businesses. Careful design can ensure new housing reflects the character of downtown and the surrounding area. Cities throughout the country are offering financial incentives and modifying development regulations to encourage residential development.