I found Patti's comments extremely interesting in one of my recent posts.
"One ought to take a few moments to talk with the folks at the Co-op to get another view about which community is more business friendly. The Co-op had identified a downtown Champaign property that better met their venue criteria. However, the lack of willingness on the part of Champaign to be business friendly enabled Urbana, being more business friendly, to facilitate the present location."
"To Anonymous 4:57P--the Co-op is the grocery store once housed in the Disciple Church at the corner of Springfield and Wright and now moved to the west side of Lincoln Village. I was not directly on the Co-op venue selection committee so I can not tell you point by point, but generally as reported to the Co-op membership, yes, I am a member, and reported via email to the membership, the major difference between the two communities was the overt willingness to enable as best as could be done the move of the Co-op to Lincoln Village compared to the "we could not care less and we are not doing anything to help" reception given by the city of Champaign. As always, I encourage anyone to check with someone who served on this Co-op committee. It was a very long, democratic process to choose the new venue."
I have heard various first-hand accounts that Urbana is "business-friendly" from Urbana business owners. Lease terms are extremely favorable at Lincoln Square and it apparent the city is willing to get creative with that facility.
I can't think of another time where a business has opened at a new location and boasted they would have preferred to be in another city. This is an odd marketing strategy. Very interesting.
I am very interested to hear what makes a city "business-friendly" and what does not.
Considering the vacancy rate at Lincoln Square I imagine they'd be pretty damn friendly to anyone willing to put up a sign, especially something like a food co-op that nobody could object to. Champaign seems to have development coming out of its ears, so why would they go out of their way to "enable" a business that is a better fit for Urbana anyway? Clearly the co-op was hoping for some kind of bidding war between the two cities. If their "venue criteria" included free parking then there's hardly anything appropriate in downtown Champaign.
Business-friendly means limited regulation and taxes, low crime, effective law enforcement, venue construction that keeps up with demand, popular neighboring ventures, lots of affluent customers, and available parking nearby. Business unfriendly is having your property down-zoned after you bought it.
Michael Fuerst approached the city about opening a costume shop similar to Dallas and Co in Lincoln Square, but the city would not give him favorable financing out of fear he would sell bozo paraphernalia
Warrior wrote: Champaign seems to have development coming out of its ears, so why would they go out of their way to "enable" a business that is a better fit for Urbana anyway?
What makes a business an Urbana fit? We do know that major appliance stores, movie theaters and major bookstores are a Savoy and Champaign, rather than Urbana fits.
Warrior also wrote: Clearly the co-op was hoping for some kind of bidding war between the two cities.
What makes you believe this, Warrior?
illinipunditposter
As a business owner starting up in 1985, I chose Champaign. Both cities compared equally except Champaign had slightly lower taxes and much better traffic patterns than Urbana. I have never been tempted to move my business except outside CU to a city which provides more services. However, the presents of the U of I, with its culture, facitlites and business draw keeps me and many business in both Champaign and Urbana. Both cities leverage the U of I presents enabling them to get by without providing public event crowd gathering facilities and minimal utilities.
warrior is right on...i opened a business in champaign last year and everything about the process was great...searching for properties in Urbana was a joke; prices were often higher per squre foot for low visibility, low traffic, poorly maintained spaces, and there is a constant risk that the Urbana city council would pass some ridiculous ordinance that outlawed profits, smiling at customers, or being open at all. Due to the relative infancy of its economic development, Savoy was riskier than Champaign but there were better opportunities in Savoy than in Urbana...primarily due to better planned retail spaces, visibility and traffic. Business begets business, retail begets retail.
The reason there is no new-release movieplex in Urbana is that there are already two in the metro area (Beverly and Savoy 16). There are limits about how many theaters/screens in a given area the studios will send the movies to, and it would have been an "any 2 ofthe 3" situation. So, the people considering opening one in Urbana decided not to - at least that's what they said when they decided not to go with it.
Personally I like that there are now TWO grocery stores in downtown Urbana, not even counting Strawberry Fields. Actual necessary shopping, easy walk from the house.
Urbana is and as near as I can tell wishes to remain a small community with limited access. This goal has been reflected almost continuously by their residents in who they vote to run their government and appointed regulators. I recall Champaign, originally West Urbana was created by an Urbana's ordinance banning the railroad from passing within two miles of the Court House. The intent at the time according to letters I have was to "keep out the rif raf" and preserve the community "tranquillity".
Not much has changed in over 160 years except very recently I am disappointed Strawberry Fields suspended their food service.
If Art Mart and Mirabelle moved to Urbana, I wouldn't find any need to go there. I'm keeping my fingers crossed. :)
Chanpaign Dweller: I assume you meant "from Urbana"
"What makes a business an Urbana fit? We do know that major appliance stores, movie theaters and major bookstores are a Savoy and Champaign, rather than Urbana fits."
I believe that businesses that are "urbana fits" are niche/destination businesses where people are willing to go out of the way to patronize. Example: organic foods. On top of this, Lincoln Square is attractive:
- Great parking (and also free)
- Lower rent (assuming)
- A venue that also hosts the market at the square, an extremely successful and well-attended venue week in and week out. I suspect this is the same demographic that would patronize the Co-op. Huge foot traffic on Saturdays!
- Strawberry Fields has a faithful following and they recently quit food service.
I was very happy to see the Co-Op move into the Lincoln Square Mall. It seemed like a perfect fit!! I wonder why the organization would have preferred Champaign?
"Business-friendly means limited regulation and taxes, low crime, effective law enforcement, venue construction that keeps up with demand, popular neighboring ventures, lots of affluent customers, and available parking nearby."
1) I think that business friendly is where businesses/investors can make assumptions and feel confident in those assumptions. Since wise men don't build their houses in the sand, a consistent and stable economic/political climate are fundamental. If this criteria isn't met, I don't think the rest matters unless there is there is a deal that is too good to pass up.
2) Another important aspect that I believe makes a community business-friendly is consistency. Quality = consistency. Are standards applied FAIRLY to everyone? If I make an investment under certain terms, will it be the same terms that are offered to my competitors? I am likely in the minority, but I am more concerned with getting fair treatment than special treatment. I think don't believe it is necessarily a sign of "business-friendliness" if SPECIAL treatment is provided to certain groups.
3) Are business treated like a partner?
I think there is opportunity for both Champaign and Urbana to be more business friendly.
For retail, I would say that convenience to / for customers would be the biggest plus. Urbana is a bit more crunchy (or at least has that reputation), so for the co-op to go there makes sense. Since it's a membership organization, they also probably have a better handle on where their customers are from than, say, the Meijer. I'm assuming that it's organized as a nonprofit, so taxes probably aren't much of an issue. I wish them luck - I always thought that Lincoln Square was where retail goes to die.