Three sets of seven actions will guide future downtown business development strategically (see Figure 4.4). These actions emphasize business retention, recruitment and building a more cohesive downtown district.

Retain and Expand Existing Businesses

a. Provide Business Technical Assistance
    Business retention is a high priority strategy for Boundary County. Economic conditions have created hardships for many businesses, and to prevent further erosion of Bonners Ferry's business sector, it is important to retain and assist existing businesses.

    During the process of developing this plan, the planning team interviewed local business owners and managers. Many expressed a need or desire for assistance with marketing, merchandising, building facade renovation, business management tools, etc. Workshops in areas such as marketing, merchandising, accounting and employee training were mentioned as potentially helpful. Additionally, professional design assistance to improve buildings and landscaping is needed. A workshop should be held to discuss opportunities for business diversification and expansion based on the results and implications of market research recently completed by the planning team and University of Idaho.

b. Create a Low-Interest Loan Pool
Often business and property owners have the desire to make improvements, but do not have readily available cash to do it. The Partnership should work with local banks (who already have expressed interest) to form a low-interest loan pool for business diversification or expansion, and property improvements such as façade renovation.

c. Support Expansion/Diversification Candidates
A few businesses expressed a desire to diversify or expand their business operations, based on potential in the marketplace. The Partnership should ensure that these businesses' needs are being met in order to accomplish their goals, provided the goals are consistent with the identified Downtown markets, niches and strategy. Downtown's niches are 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.

    Examples of good candidates for expansion are Safeway, the Dollar Store and movie theater (by adding Saturday children's matinees and/or double shows).

d. Serve Specific Markets Strategically
    Downtown's primary markets are residents of Bonners Ferry/Boundary County, Downtown workers, guests at the Kootenai River Inn, and pass-through traffic. In order for businesses to be successful in Downtown, they must serve these markets effectively. The local markets include increasingly larger numbers of seniors and Hispanics, youth, and new residents to the area. To serve them, businesses need to be senior-friendly (physical property, customer service), bi-lingual, kid-friendly and open to newcomers. Customers have expressed a clear need for businesses to be open later than 5:00/5:30 p.m.; and on weekends. Business diversification and expansion also should be complementary to Downtown's role as a pedestrian-oriented area that needs to generate high amounts of foot traffic.

e. Create and Enforce a Downtown Parking Policy
    Priority for on-street parking in Downtown must go to customers, not business owners or employees. However, if owners/employees are to use designated parking lots, the lots must be accessible, well-lit (for safety) and paved. The walking routes to and from the lots also must be well-lit with sidewalks. Once appropriate designated parking is in place, business and property owners could be asked to sign a voluntary policy or agreement to use designated lots - and to require their employees to use them. Business owners could watch for violators, and issue tickets to them. Fines could go into a fund for Downtown events, promotion, beautification, etc. If designated employee parking is created, and a reasonable parking policy is enacted and enforced, Downtown businesses should not experience a parking problem for their customers.

f. Implement Image/Awareness Promotions
    One of Downtown's greatest challenges is the impression that it is in decline. A proactive effort is needed to convey the message to Boundary County residents that "Big Things Are Happening in Downtown Bonners Ferry!" The Partnership needs to implement a promotion campaign that includes the following:

* Press releases about planned improvements
* Fliers and ads about plans and events (e.g., with "Today" and "Tomorrow" images)
* Lists of goods and services available Downtown
* Cooperative special events and promotions
* Awareness-building about the value of Downtown as the City's center
* Ways for local citizens to become involved in the improvements to Downtown

    Effective marketing requires expertise. The promotion of Downtown should be handled like promotion of Silver Lake Mall in Coeur d'Alene, Northtown Mall or Riverpark Square in Spokane: a cohesive group of goods and services as a collective whole. Promotion should be targeted strategically to Downtown's markets, and focus on its unique characteristics and mix of products and services. 

    Positive changes in Downtown should be publicized at least once or twice monthly, so customers are intrigued to "come and see for themselves what's happening Downtown". By creating a "buzz" of interest, Downtown begins to build momentum for revitalization efforts. 

g. Develop Upper-Story Residential Spaces
    Downtown residents are good Downtown customers. Nationally, there is a renaissance in people moving back into Downtowns - particularly in renovated historic buildings (loft apartments, condominiums, etc.). There are several buildings in Downtown Bonners Ferry that are suited to residential development. The Partnership should work with appropriate property owners to explore the possibilities for Downtown housing.

D2 Recruit Complementary Retail/Service Businesses

a. Create an Inventory of Available Commercial Space
    Downtown Bonners Ferry has a commercial space vacancy rate of about 16%, based on the planning team's findings. The ideal vacancy rate (for ground floor) is 5% or less. Before a concerted effort can begin to recruit tenants or owners for empty spaces, an inventory and descriptions of the space should be compiled. The inventory should include space location, size, specifications (utilities, etc.), features, condition, ownership, history, cost, terms, potential best uses, parking, access, etc. Information can be obtained from the property owners themselves or from realtors. Then when a potential recruit is identified, the appropriate targeted spaces can be identified to match the target's needs.

b. Tap/Create Recruitment Incentives and Benefits
    The Partnership should emphasize to potential recruits the benefits of locating their business Downtown. There are a number of benefits created by local planning efforts, and other benefits offered by the State of Idaho to rural businesses through the 2001 Rural Economic Development Initiative. Those benefits include:

* Downtown Bonners Ferry Beautification (as outlined in this document): the Downtown entrances, lighting, sidewalks, parking and atmosphere will be improved to draw more customers and encourage business development
* Pro-Business Government: City and County leaders have demonstrated their desire and support for business development in Downtown Bonners Ferry. Regulations and codes have been examined by the planning team, and recommendations made to the City to facilitate business development and renovation of historic buildings while protecting the public interest.
* Professional Management: the Partnership will hire a full-time economic development professional to implement business and economic development strategies.
* Active Chamber of Commerce: the Bonners Ferry Chamber is active in business issues and support activities, and in tourism promotion and visitor services.
* Low-Interest Loan Pool: the Partnership plans to establish a low-interest loan pool for businesses to tap for business expansion, diversification, building façade renovation, etc.
* Downtown Promotion (as outlined in this document): Downtown businesses will work cooperatively to address business hours, customer service training, targeted events, and strategic marketing. Promotions will benefit all businesses Downtown.
* City/County Promotion: the Chamber of Commerce will take the lead in organizing a county-wide effort to promote businesses and services, targeting local residents, visitors from the region and tourists.
* Idaho Enhanced Investment Tax Credit: businesses who invest in rural cities and counties are now eligible for an enhanced investment tax credit up to $500,000, based on the county's economic situation.
* $500 Job Credit per New Employee: businesses who create new jobs in rural areas receive a one-time $500 tax credit for each employee hired.
* Idaho Corporate Income Tax Reduction: corporate tax rates were decreased in 2001 from 8.0% to 7.6%.
* Workforce Training Funds: businesses in rural areas can obtain up to $3,000 per employee with no matching funds required for training.

c. Identify Target Businesses (e.g., Farmers' Market, Social Retail)
    The planning team conducted an inventory of existing businesses Downtown, a market analysis and a survey of community youth. Based on the analysis, target businesses for recruitment include social retail (e.g., farmers' market, pizza and/or upscale restaurant, bakery, arcade), florist, business support services and others who fit well into Downtown's niches.

    The farmers' market is an important part of business recruitment. The current farmers' market should be expanded and relocated, to include a year-round indoor facility. The market will create activity, traffic and excitement. It can include fresh fruits, vegetables and baked goods; crafts and artisans; entertainment; etc. Customers will enjoy the social atmosphere and spend money not only at the market, but also at other Downtown businesses. The market can take place Saturday mornings only, or expand to other days seasonally. 

    Ideally, the market will serve as a small business incubator, where vendors move from temporary to permanent stalls, and then to retail space in the Downtown. The market could be placed on marginal-use land, such as the grain warehouse area adjacent to the railroad behind the Courthouse. Temporary facilities could survive with electricity only; while more permanent facilities might include power, water, refrigeration and movable walls for multi-use space. Successful markets need professional management for administration, tenant recruitment, promotion and programming.

d. Create a Business Recruitment Packet
    A business recruitment packet is needed to provide information to business prospects in a concise and accurate manner. The packet should look professional, incorporating the Downtown image. The packet contents should include the following:

* An overview that "sells the vision" of Downtown (vision, goals, revitalization plans) 
* Brief information about Bonners Ferry, the Downtown district, population and economic data, taxes, City permits and fees, a synopsis of local and area growth
* Highlights of business and market research indicating the types of businesses needed, market potential and competition
* Benefits of locating in Downtown Bonners Ferry for specific types of businesses
* Information about available commercial space (from realtors, property owners), loan pools, business assistance and workforce training programs, etc.
* Quality of life information, such as housing, schools, recreation in the area, cultural opportunities, etc.

e. Close the Deal: Make Contacts and Follow Up
    Once business recruitment targets have been identified and a sales packet assembled, the Partnership representatives should contact the business, discuss the possibility of their locating in Downtown Bonners Ferry and provide the packet of information if they express interest. It is important to assign knowledgeable professional staff or volunteers to specific business targets, and to have that person remain the key contact throughout the recruitment process. The local contact person's timely response to the recruit's questions, needs and challenges will make the difference between a decision to locate in Downtown Bonners Ferry or elsewhere.

f. Support Physician Recruitment as Business Development
    Recruitment of physicians to rural areas is often difficult. As reported in Chapter 3, the lack of physicians in Bonners Ferry generates tremendous retail leakage from the community. The Boundary County Hospital is actively recruiting physicians, and needs the support of the community to be successful. Downtown businesses can assist by hosting/attending receptions and meetings with physician candidates to express their support, offering to provide home and office furnishings/supplies to a new physician, contributing to a physician signing bonus package, etc. One community in Washington State even provided a newly-built home to attract a doctor!

g. Support School Facility Improvements for Business Recruitment
    The physical condition of Bonners Ferry schools is a detriment to business recruitment. Downtown businesses should actively support the school district in its effort to fund improvements. Support could include service on a citizens advisory committee to help craft funding proposals, advocacy through fliers handed out to customers, letters to the editor and a vote of support by the Chamber of Commerce.

D3 Create Cohesive Business "District" Downtown

a. Agree on a Downtown "Brand" (Image)
    Downtown needs to be identified by consumers as a special "place". As a district, it can be identifiable simply by using the words "Downtown Bonners Ferry". In section I of this chapter, a graphic image, or logo, is recommended for Bonners Ferry/Boundary County to promote itself to a variety of markets. As a district, Downtown should work with the Chamber and its ad agency to design the logo, and ensure that the word "Downtown" can be added to the design for specific Downtown promotions. A separate and distinct logo is not necessary or recommended for Downtown because of possible consumer confusion between a Bonners Ferry logo, Downtown logo, Selkirk Loop logo, etc. Downtown doesn't need to add logo clutter, but it can "personalize" the logo for Downtown promotions if the logo is designed correctly.

    Development and promotion of a downtown image will help "brand" downtown as a unique place. Cooperative promotions, and use of the brand by all downtown businesses, will ensure that the consumer receives a much clearer message about the place and its benefits.

b. Implement Collective Actions to Better Serve Strategic Markets
    During citizen interviews and surveys conducted by the planning team, many potential Downtown customers indicated that they are "disconnected" from it. They expressed a desire to shop, dine or use services Downtown, but were frustrated by limited (or inconsistent) business hours and no events specific to their needs. Downtown businesses should discuss options for more customer-friendly business hours, and decide on a strategy to implement adjusted seasonal hours to better suit consumer needs (e.g., open late on the first Thursday of each month, open Sundays during peak tourist season). Business hours is just one example of collective action that could be taken to better serve Downtown's customer base.

c. Implement Cooperative Promotions to Reach Strategic Targets
    Downtown events and promotions should target specific markets, and then all (or most) businesses cooperate in promoting that event or theme. Examples of cooperative promotion efforts include seasonal streetscape banners, a business directory to Downtown, advertising, direct mail campaign and niche events. The business directory could take the form of a small brochure, a web site listing and/or a signboard with map indicating all businesses in the district (such as mall directories).

    Businesses also should cross-promote for each other (a hardware store can set up an interesting seasonal product display in the bank lobby; the art or bookstore could display products in the restaurant; the hardware store and bookstore in turn could display restaurant menus and bank brochures, etc.). Cross-promotion efforts should be mutual, and displays should clearly identify the merchants who provide the products or services. Section I of this chapter provides more detailed ideas and strategies for promotion.

d. Highlight Heritage of Downtown and Community
    Downtown Bonners Ferry has outstanding heritage resources, and they should be highlighted for residents and visitors alike. A walking tour brochure describing the historic buildings, community history and museum collection could be used by schoolchildren, residents, visiting family and friends, and heritage/cultural tourists.

e. Address Pedestrian Customer Comfort Issues
    Downtown is a pedestrian-oriented district, and as such, it also should be a pedestrian-priority area. Pedestrians who feel comfortable and safe will spend more time (and money) in Downtown. To ensure a comfortable place, consider Downtown as "home". The entries from Highway 95 onto Main and Kootenai are the "front door". The visitor center and City parking lot are the "living room". The streets and sidewalks are hallways and passages. The buildings and pocket parks are "rooms". In this context, is the "home" inviting? Does it feel comfortable? Are the hallways well-lit? Does the roof leak? Are the carpets worn? Are there places to sit and relax? Entertaining things for kids? Social places for adults? Downtown needs to consider enhancements that will make customers feel more comfortable (like crosswalks, lighting, benches, children's/youth items, awnings) will make the "home" inviting.

f. Engage Citizens in Improvements
    If Downtown is the heart of the community, then all citizens have a stake in its success - everyone "owns" Downtown. However, many citizens do not feel a sense of "ownership". A Downtown revitalization effort presents many opportunities for citizens to become engaged in the process, from planting flowers to buying personalized bricks for a plaza to constructing a river walk. The Partnership should tap into the community's volunteer spirit to accomplish some short-term projects Downtown, so that citizens can re-connect with their town center.

g. Track Performance
    The success of Downtown revitalization efforts should be tracked and quantified. Factors to measure include storefront vacancy rate, event attendance, business sales, foot traffic counts, amount of publicity generated, community participation, buildings rehabilitated, amount of public and private sector investment per year, etc. Volunteers (youth, seniors) could assist with the tracking efforts (for example, youth doing court-ordered community service time could conduct foot traffic counts). A simple tracking database should be established and maintained by the Chamber so that results can be collected quarterly and tracked for effectiveness over time.