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3B Downtown's High Economic Potential Is Largely Untapped

B1 Downtown Business Conditions

a. Downtown's Role as the Community's Center is Important
    Since the founding of Bonners Ferry, Downtown has been the commercial, social, civic and recreational center of the community. In the past, its commercial sector was anchored by department stores, specialty shops (clothing, shoes, sports, hardware) and professional services (legal, medical, financial), who were supported by a strong civic presence (Courthouse, City Hall, Post Office). Following construction of the Highway 95 bypass, which relocated the highway two blocks east of Main Street, and encouraged commercial growth on the South Hill, Downtown's "centeredness" began to change. 

    "As goes Downtown, so goes the community" - the condition of Downtown is a classic litmus test of a town's well being. A revitalized Downtown is at the crux of a healthy community with a positive self-image. Downtown provides the community with its unique sense of place - its identity. Consequently, Downtown Bonners Ferry should be seen as a critical component of the community's overall strategic economic development program. The city center's vitality and attractions greatly impact retention and recruitment of new business and industry, employees, physicians and visitors to the community.

b. Downtown Has Many Strengths
    Downtown Bonners Ferry contains an impressive mix of goods and services to serve the community (see sidebar at left). There are nearly 100 businesses, agencies and organizations located there, along with homes and apartments. The strong civic presence of the post office, county courthouse, city hall and library attracts residents to Downtown, benefiting neighboring businesses. 

    There are a number of outstanding historic buildings in Victorian and art deco style, and several are recently renovated. The Georgia Mae Plaza in the center of town provides a "gathering place" for citizens and visitors to socialize, eat lunch in the sun and just linger in Downtown. The Chamber of Commerce visitor center draws traffic from the highway and encourages visitors to walk to Downtown businesses. The friendly, pedestrian environment of Downtown is conducive to business development.

c. Downtown's Challenges Must Be Addressed Proactively
    City growth and business development along the highway on the South Hill, and north of town at Three Mile, have eroded Downtown's business vitality. The Bonner Mall and arrival of major retailers such as Wal-Mart in Ponderay further contributed to declining business sales Downtown. Increasingly, Boundary County residents have traveled out of town for medical services, taking retail and service dollars out of the community with them. As a result, a few anchor stores have closed, and Downtown's traditional role and business mix have changed. Loss of anchor stores has hurt smaller businesses from lack of customer traffic.

    Downtown has a significant number of vacant buildings and commercial spaces. The vacancy rate (the number of occupied spaces divided by total spaces) is about 19%. Ideally, a Downtown should strive to maintain a vacancy rate of only 5% on the ground floor and slightly higher on upper floors. Proactive business recruitment is needed to prevent further increases in the vacancy rate.

    It only takes four seconds to make a first impression - and if it is a negative impression, it may be a last impression. A visitor's "first impression" of Downtown is the view from the highway. In four seconds, a customer will make a decision to enter Downtown - or not - based on what they see. When the highway was moved away from Main Street, the "back door" of Downtown buildings (formerly the alley) became the "front door". Many buildings still give the "first impression" that customers are entering through the back door. The entryways at Main and Kootenai are not well marked in advance. And some of the parking areas, sidewalks and building facades are in poor condition, giving the impression that the area is unkempt and not completely "open for business". After dark, pedestrian lighting is poor - especially connecting to parking areas.

    Parking is sometimes a problem Downtown, although prime spaces in front of businesses often are taken by business owners and employees, preventing customers from parking there. When the casino hosts large events, the city parking lot at the visitors center is apparently used by some guests for overflow. As business vitality Downtown improves, this could create conflicts unless codes or time limits are imposed during business hours. An area of particular concern for parking is the area near the Post Office, Safeway and Courthouse. Additional parking for employees is needed to free more parking for customers.

d. Downtown Has Significant Opportunities
    In the context of new markets and competition, Downtown's role, or niche, has changed. It will not return to its traditional role as a major retail center; however, it can create a new niche. Downtown can be a unique place with specialty and social retailers, convenience goods and services, professional and personal services, residential development, dining and entertainment. Growth in county population and tourist traffic has created new markets for Downtown, but to tap them effectively, proactive and strategic action is needed.

e. Capturing 5% More Traffic Could Mean $1.5 to $8 Million in Business Sales
    On a daily basis, traffic on Highway 95 averages 9,000-10,000 vehicles passing the Kootenai and Main Street entrances to Downtown. If Downtown could capture just 5% more of that traffic than it does now, it would draw 450-500 more cars into Downtown. If those customers spent an average of only $10 per vehicle, six days per week, the result would be an additional $1.4 to $1.6 million per year! Spending of $50 per vehicle would mean nearly $8 million in additional revenue.

f. Downtown's Markets Are Not Tapped Effectively
    Downtown's existing markets include residents of Bonners Ferry and Boundary County, tourists (pass-through and destination), and in some categories, residents of surrounding counties (for clothing, furniture, books, framing, guns, autos, etc.). The Post Office, Courthouse, Library and City Hall are substantial anchors, drawing city and county residents for personal business. The theater and other businesses draw youth, but Downtown does not feel "kid-friendly". For special events, the fairgrounds draw people from throughout the Inland Northwest. The casino brings destination visitors from Canada, Spokane, Coeur d'Alene and Montana. However, Downtown does not have an organized promotion effort targeting each market with specific messages, so the markets are not being tapped effectively.

g. Competition is Regional and Service-Driven
    In some categories, Downtown's most direct competition is the South Hill commercial district (grocery, dining, personal and auto services); however, in most categories, the two districts are complementary. They are two different types of experiences: Downtown is pedestrian-oriented (park and walk), while South Hill is auto-oriented (each business is a separate destination). The most significant competition for Downtown comes from Ponderay and Sandpoint, and to a lesser extent, Coeur d'Alene and Spokane. 

    Consumer interviews and surveys reveal that the competition is based on selection, service (business hours) and variety more than price. Customers are willing to pay a bit more to shop locally if greater selection and personal service are provided - and stores are open when they want to shop. They shop in "big box" retail stores because of selection and business hours (and to some extent price), but they generally do not enjoy the experience. They would prefer to shop at home.

h. Retail Leakage from Boundary County Exceeded $76 Million in 1999
    As discussed on earlier, Boundary County experienced about $76 million in retail leakage in 1999. Although Downtown Bonners Ferry could never capture all of the sales of goods and services being purchased by local residents, there are opportunities to stop some of the leakage. The categories experiencing the most leakage are apparel/accessories (92%), home furnishings (86%), drug stores (78%), building materials (75%) and general merchandise (73%). Basic "necessity" items such as shoes, bedding/towels and underwear were mentioned as top priorities by consumers. Two major reasons for the retail leakage are business hours (closed after 5:00 p.m. and on Sundays) and out-of-town medical visits. Residents say that they don't want to leave town to shop, but they have no choice because business hours and product selection do not meet their needs.

i. Business Retention & Recruitment Should Focus on Niches 
   
In order to fill vacant spaces in Downtown, recruitment must be strategic. The best recruitment targets are based on Downtown's identified role and niches. Downtown is the heart of the community, and its historic center. It is a pedestrian-oriented area, which means an area conducive to parking and walking from business to business, rather than driving to each individual stop. Businesses and services best suited to Downtown should generate moderate to high amounts of foot traffic. Therefore, based on the current inventory of Downtown businesses, a review of market data, and a pedestrian orientation, Downtown's niches for business retention and recruitment could be defined as follows:
* Specialty Retail (clothing, gifts, books, office supplies, business 
support services)
* Social Retail (eg. dining, entertainment, bakery)
* Personal & Professional Services (health & beauty, legal & financial)
* Tourist Services (lodging, recreation, entertainment, information)
* Convenience & Necessities (groceries, pharmacy, hardware, auto)
* Government & Nonprofit (Fraternal)
* Heritage Focus: "Heart of Bonners Ferry", Historic Buildings, Museum, etc.
* Connection to River - relaxation, walking, etc.

j. Downtown Does Not Have a Clear Image, or "Brand"
    As a district, Downtown Bonners Ferry does not have a specific image, or "brand" that is recognizable to consumers. A clear image would communicate Downtown's niche in the marketplace, along with the reasons why customers should make it their destination. As discussed previously, there is an impressive variety of businesses Downtown; however, each one currently promotes its own products or services using its own message to its own customers. In addition, Downtown (as a district) communicates a message to consumers simply by not communicating: the message is that Downtown is not a cohesive, special "place". 

k. Downtown's Attractions and Events Should be Part of a "System"
    The major tourist attractions downtown are the Kootenai River Inn & Casino, the fairgrounds, the historical museum and the river. These attractions have a significant impact on Downtown business; however, the impact is not being maximized. 

    The casino is cut off from the Downtown core by the Highway 95 bypass. A pedestrian underpass is proposed to enable the thousands of casino guests to access the Downtown business district more easily. According to casino management, an average of two guests in every party of six do not gamble - they are joining their friends or spouses as part of a larger group, and looking for other things to see and do. Casino guests who arrive on tour buses have no easily accessible way to cross the highway into Downtown.

    The fairgrounds are host to several major events each year, including the county fair in August, the Country Classic Antique Show in March, Kootenai River Days in June, horse shows, Lions Club Demolition Derby in September, Kootenai Tribe Pow Wow and others. Many of the fairgrounds facilities are old and in need of repair and enhancement. Inadequate space is a problem for some events (including the fair), but the fairgrounds cannot be expanded in their current location.

    Moreover, the location of the fairgrounds is not ideal: access and visibility are poor, parking is limited, and with only a handful of major events annually, the fairgrounds do not generate significant traffic for Downtown businesses. The site would be better suited for commercial and light industrial uses, such as a business center. It has City water and sewer service, is already zoned industrial, and has access to two major rail lines. Commercial/industrial development to create jobs would provide an enhanced market for Downtown businesses from employees of those businesses commuting through Downtown.

    The historical museum boasts a collection of more than 10,000 items, yet it relies on volunteers for staff, and is open only limited hours. The museum location is not ideal: its current location is prime retail space on Main Street, but it does not generate foot traffic to help strengthen the overall economic conditions of the district. It does not stand out as a highly visible tourist attraction in its location across the street from City Hall. The Historical Society would prefer a more visible location with additional space.

    The Kootenai River is perhaps the most under-appreciated and under-utilized asset in downtown Bonners Ferry. People naturally are attracted to water amenities, yet there is virtually no connection to the river from Downtown. For generations, the river was "the enemy" because of flooding, so it was diked and cut off from the community. The construction of the dam at Libby alleviated much of the flood threat. Now it is time for Downtown Bonners Ferry to reconnect with its river.

    Boundary County's biggest annual event, Kootenai River Days, is held in mid-June and includes a rodeo, dances, classic car show, sidewalk sales and other events.

    Summer Saturdays are highlighted by the Bonners Ferry Farmers' Market, which is located in the City parking lot adjacent to Highway 95 and the visitor center. The Market attracts people from throughout the county, and helps drive sales at other businesses by generating foot traffic Downtown. However, the Market is limited in scope, and if expanded, could become a tremendous economic engine for Downtown's overall economy.

    An integrated system of attractions would help draw additional visitors to Downtown Bonners Ferry, and encourage them to extend their stays. Enhancement of existing assets, such as an interpretive walking tour of Downtown highlighting historic buildings, would add much to the experience for both residents and visitors. A cultural center that interprets and celebrates the county's heritage (Kootenai Tribe, mining, timber, agriculture, citizens of varying backgrounds, etc.) would serve as a destination in Downtown. Improved streetscapes and buildings would enhance the overall Downtown environment as a destination. Facilities for children and youth would make Downtown more "kid-friendly".

l. Downtown Promotion Needs to be Coordinated and Strategic
    The Bonners Ferry Chamber of Commerce is the lead entity for business and tourism promotion in the community. It is managed by a volunteer board of directors, but has no paid professional staff. The Chamber operates a visitor center Downtown (adjacent to Highway 95 and the city public parking lot), that is staffed by volunteers. The visitor center is a tremendous asset to Downtown, as visitors are encouraged to walk directly from the center to businesses.

    Many citizens in Boundary County perceive that "there is nothing Downtown for me"; but there are many businesses Downtown! Unfortunately, each business conducts its own marketing, with its own image and unique message to customers. 

    Cumulatively, retail and service businesses in Boundary County spend approximately $750,000 per year on advertising. If only 10% of those existing advertising dollars were put into a pool of funds for a highly effective promotion campaign focused on recapturing some of the retail leakage, an advertising budget of $75,000 or more would be available.

    The Downtown district currently sponsors an annual Christmas promotion and other cooperative marketing efforts, which are coordinated by volunteer business owners (when they can make time). Following the closure of JC Penney's in 1999, Downtown retailers developed a cooperative monthly radio advertising campaign to attract customers. Downtown businesses also try to support each other by referring business to one another.

    However, collective promotion requires coordination and expertise. Just as malls have full-time professional management to conduct business retention, recruitment and promotion, so should Downtown. Downtown is like a "mall without a roof", only more diverse - and with significantly more investment in infrastructure. In order for business and property owners to realize a return on their investment, there must be someone in charge. A professional Downtown manager could provide business assistance, recruitment of buyers or tenants for vacant buildings, and strategic promotion.

B2 Downtown Infrastructure 

a. Utility Services are Adequate for Business Development
    A review of Downtown infrastructure includes an evaluation of its utility services. The city engineer states that the buried utilities Downtown - water, sewer, and gas - are in acceptable condition. Generally, the sewer lines are located beneath alleys, and the water lines are beneath Downtown streets. Water services are metered and fire protection is good. Fire hydrants Downtown each produce at least 1,500 gallons per minute (GPM), which exceeds the recommended standard of 1,000 GPM.

    The county fairgrounds area is served by an eight-inch water line and an eight-inch gravity sewer line, which is adequate for significant commercial or industrial growth. The fairgrounds area also has fire protection from the city water system and fire department

b. Access to Downtown from Highway 95 Needs Improvement
    Access is a critical component of business development. Customers must be able to drive easily to and through Downtown in order to do business there. The primary entrances to Downtown are the intersections of U.S. 95 with Kootenai Street and Riverside (Main) Street. Both intersections have a designated left turn lane on U.S. 95. The approach into Downtown from U.S. 95 at Kootenai is the most central for access. However, the intersection has difficult sight distance since it is located on a curve. Further, this intersection is located on a significant grade (slope), which poses safety problems in the winter.

    The approach onto U.S. 95 shared by Riverside and Main Streets can become a bottleneck during peak hours when the Crown Pacific lumber mill shifts change is over. The geometry of this intersection can be confusing to visitors since two major streets converge at one approach to U.S. 95.

    The east approach of Kootenai Street with U.S. 95 provides a direct access to the Kootenai River Inn parking lot. This approach is on a grade but is on the outside of the U.S. 95 curve and has better sight distance than the west approach of Kootenai Street.

    Another access to the Downtown area from U.S. 95 is Ash Street, which provides direct access east of the highway to the Jr. High School neighborhood, and indirect access to the Kootenai River Inn and Downtown via Arizona Street. Although the access to Downtown is indirect, the Ash/U.S. 95 intersection is probably the best approach to Downtown from the standpoint of safety, sight distance, and geometry.

    Traffic circulation in Downtown Bonners Ferry is made difficult by the limitations of only two approaches onto U.S. 95 at Riverside/Main and Kootenai. Increased use of the Ash/U.S. 95 approach could improve traffic safety and circulation.

B3 Downtown Design & Physical Condition

    Downtown Bonners Ferry was designed and developed in response to its natural surroundings. Historically, transportation via the Kootenai River and the railroad fueled Downtown's growth, influencing the way its buildings were constructed and roadways aligned. In contemporary times, Downtown has been influenced again by automobile transportation. With each period in history, Downtown's design and physical conditions have responded to changes in the transportation system.

a. Design of Downtown Entrances is Weak
    Downtown's two principal entries from Highway 95 (Kootenai Street and Riverside/Main Streets), and two secondary entrances (Ash Street exit and turnoff to Kootenai River Inn) need more visibility. The Kootenai entrance is highlighted by a carved wooden entry sign, while the Riverside entrance is identified by a stand of trees accompanied by three flagpoles. Signs to direct motorists into Downtown from Highway 95 are inadequate and give insufficient advance warning. Motorists and pedestrians receive little notice that a special place - Downtown Bonners Ferry - can be accessed via the entries. Notable opportunities exist to improve all four entrances.

b. Streetscapes are Not Customer-Friendly
    Throughout Downtown, the streetscape environment is sparse and largely uninviting to the pedestrian as well as the motorist. Historically, the Downtown's streetscape environment was simple, but did include acorn-style pedestrian lights. Today, cobra head auto-oriented lighting and an occasional potted plant comprise the streetscape environment. The only pedestrian amenity is the Georgia Mae Plaza, which is nicely landscaped with places to sit and a gazebo.

c. Downtown Parking is Inadequate, and Inefficient Due to Lack of Organization
    Approximately 300 public parking spaces exist in downtown, with on-street parking comprising almost two-thirds of the total (Figure 3.15). The one public parking lot in downtown is located adjacent to Highway 95 between Bonners and Kootenai Streets. This parking lot lacks organization and aesthetic enhancements such as landscaping, lighting and orientation signs. There is no coordinated system of parking in downtown to differentiate between employee parking and public (customer) parking.
    There is a clear parking shortage when downtown building floor area is compared to total Downtown parking units. downtowns should strive for 2.0 to 3.0 parking units per thousand square feet of built space (retail, office, residential, etc.). By comparison, professional service developments usually install 2.5 parking units per thousand square feet of office space. Shopping malls average 3.5 units per thousand feet of space. Multi-family housing has at least 1.0 parking space per dwelling unit. 

    If downtown Bonners Ferry were to use the 2.5 unit standard, there is a shortage of 337 units (see Figure 3.15 below). At a 3.5 unit standard, there is a 662 unit shortage. These figures demonstrate the need to plan ahead and to identify locations for future off-street parking Downtown. 

    Currently, there are relatively few complaints from customers or business owners about parking availability. On November 16, 2000, the planning team conducted a parking survey between the peak business hours of 11:00 a.m. and 2:00 p.m. The survey found that on-street parking Downtown was slightly over 50% occupied during this period, and the City lot near the information center was 42% occupied. In other words, nearly half of the downtown on-street parking was empty, and nearly 60% of the City lot was empty. 

    However, it must be noted that the parking survey was conducted in mid-November, which is not during the peak summer or Christmas shopping periods. During peak periods, and when Downtown vitality is restored, even a moderate level of additional traffic will overwhelm current parking supply. Better organization of the City parking lot would increase parking capacity, and a system of designated parking for business owners and employees could free up desirable storefront parking spaces for customers.

d. Downtown Needs Amenities and Pedestrian Connections
    Downtown's pedestrian environment needs enhancement. Lack of lighting and pedestrian amenities such as benches, signs and trees make Downtown feel somewhat unwelcoming and unsafe after dark. Key areas of Downtown are not connected to each other: the City parking lot, library, Georgia Mae Plaza, City Hall, Courthouse, Post Office and river. The highway is a barrier between Downtown and the Kootenai River Inn.

e. Improved Signs Could Enhance Business Sales
    Typically, three types of signs exist in Downtowns: "wayfinding" signs, traffic signs and business signs. "Wayfinding" signs provide direction to motorists and pedestrians to help them find their way to destinations, and to know when they have arrived. Traffic signs control traffic movements ("Stop", "Yield", etc.). Business signs indicate individual business names and products/services offered.

    The majority of wayfinding signs related to downtown Bonners Ferry are highway-oriented (directing traffic north and south, and to "City Center" rather than "downtown"). Other downtown destinations are not well signed. Downtown business signs vary greatly in their effectiveness. Some design assistance and creativity could greatly enhance the image of many businesses and the downtown as a district. More effective wayfinding and business signs lead to better customer orientation and increased business sales.

f. Restoration of Building Facades Enhances Value
    Building facades contribute to the overall image of downtown, and to individual businesses. Many downtown buildings originally had well-designed facades that created an atmosphere of quality and character. Today, several downtown buildings have been altered in ways that detract from their original character. The alterations include aluminum "slip covers", and filled-in storefronts and windows. Some building facades have not been maintained. Newer buildings were constructed in styles inconsistent with downtown character. Renovation of building facades according to historic preservation guidelines would enhance building and business value, and restore the heritage and character of downtown Bonners Ferry.

g. Public Open Space Contributes to Downtown Atmosphere
    Public open space in Downtown includes the Library Park, Georgia Mae Plaza, the Visitor Center greenbelt along Highway 95, the County Courthouse/Sheriff's Station commons and the Raymond S. Houck historic bridge plaza. These open spaces contribute to the quality of customers' experience in Downtown by providing attractive places to socialize and linger. However, enhanced accessibility to them is needed through signs and physical improvements (e.g., pedestrian connections and ADA modifications).

h. The Kootenai River is an Outstanding Community Amenity

    The Kootenai River is a major landmark in the City of Bonners Ferry, and a natural feature with great historic value. It also generates activity, recreation and economic development opportunities for the city. At present, the riverfront is underutilized and untapped as a major community amenity.