Overview Wheaton Small Business Survey

Transcription

1 Overview of 2012 Wheaton Small Business Survey Montgomery County Department of General Services Wheaton Redevelopment Program November, 2012

2 Survey Rationale Assess the general small business climate in Wheaton Identify areas of need relative to general business operations under present economic conditions Understand Wheaton Small business owners attitudes about redevelopment in Wheaton Identify areas of need relative to anticipated impacts from redevelopment Serve as a tool for shaping County policy/programs related to small business assistance. Similarities and Differences between 2005 and 2012 Surveys Demographics Limited to 1 st floor/storefront Limited to Retail/Personal Svcs. Includes upper floors/office tenants as well Distribution Single Release 188 Surveys Format: Print Language: English, Spanish 139 Responses Response Rate: 73% Phased Release (3), based on geographic location 298 Surveys Issued Format: Print and Online Language: English, Spanish, Chinese, and Vietnamese 108 Responses: Response Rate 37% Economics Stable Economy Prior to Economic Downturn During Slow Economic Recovery Stage of Redevelopment No project Identified County/WMATA/BF Saul Public-Private Partnership; Subsequent M-NCPPC / County Project (Parking Lot 13) 2

3 Distribution Surveys were issues in three phases from April 4, 2012 through May 30, Due to limited resources available for distribution and collection, surveys were distributed in 3 phases, based upon geographic location. The expanded timeframe also enabled additional outreach to ensure a meaningful rate of response. The map on page 8 of this summary illustrates the areas surveyed in each phase. Survey Highlights Responses by Format and Language The survey was available online and in print. Both formats offered versions in English, Spanish Chinese and Vietnamese. Survey Responses by Format and Language Print Version No. Format % Online Version No. Format % Total No. Total % English % English % % Spanish % Spanish 2 8.0% % Chinese 4 4.8% Chinese % Vietnamese 2 2.4% Vietnamese % Format Total: 83 77% Format Total: 25 23% % Total Surveys Distributed and Responses Rates for Each Phase Phase 1-90 distributed, with 37 responding (49%) Phase distributed, with 47 responding (34%) Phase 3-79 distributed, with 24 responding (29%) Total: 298 Distributed 108 Responses (36%) Survey Distribution by Business Type 1 Retail Food Personal Svcs Prof. Svcs. Other Phase 1: 24 Phase 1: 20 Phase 1: 18 Phase 1: 25 Phase 1: 3 Phase 2: 17 Phase 2: 37 Phase 2: 21 Phase 2: 30 Phase 2: 24 Phase 3: 15 Phase 3: 15 Phase 3: 11 Phase 3: 24 Phase 3: 14 Total: 56 Total: 72 Total: 50 Total: 79 Total: %* 24.4%* 16.9%* 26.7% 13.8%* *Percentages based upon a total number of 298 Businesses 1 Distribution list identifying businesses by name can be found at the end of this report. While surveys were anonymous, those businesses in bold, provided optional contact information 3

4 Survey Response by Business Type* Phase Food Personal Services Retail Professional Services Other Anonymous* 1 23% 26% 35% 10% 6% 6/37 = 16% 2 37% 22% 16% 22% 3% 15/47 = 32% 3 33% 33% 22% 11% 0% 15/24 = 62% *Percentages for business types are calculated net of anonymous responses Survey Questions Question 1 - How long has your business been in Wheaton? 53 % of businesses responding have been in business for more than 10 years 9 % have been in business between 6 and 10 years 38 % between 1 5 Years Question 2 - Property Ownership/Tenancy 2A What is your lease Term? More than half are on 5-year lease terms (56%) Only 8% of respondents own their place of business 2B. When Will your lease Expire? Lease Maturities: % % % % % % % % % Question 2C -Do You Plan To Renew Your Lease of Find Another Location? Phase Renew-Same Elsewhere in Other Location Location Wheaton 1 97% 0% 3% 2 68% 14% 18% 3 88% 6% 6% Overall: 84% plan to renew their leases at the same location 6% plan to lease elsewhere in Wheaton 9% plan to lease somewhere other than Wheaton 4

5 Question 3 - How is business doing? The majority of respondents characterize business as Fair (39.4%) Total Ranking: Great 14.4% 3 Good 31.7% 2 Great + Good = 46.1% Fair 39.4% 1 Trouble 9.6% 4 Trouble + Poor = 14.4% Poor 4.8% 5 Ranking by Phase: Phase 1 Phase 2 Phase 3 Great 27.0% Great 8.9% Great 4.5% > 51.3% > 46.7% > 36.3% Good 24.3% Good 37.8% Good 31.8% Fair 40.5% Fair 31.1% Fair 54.5% Trouble 5.4% Trouble 15.6% Trouble 4.5% > 8.1% > 22.3% > 9.0% Poor 2.7% Poor 6.7% Poor 4.5% Question 4 - What are your immediate business concerns? For Total Survey For Phase 1 For Phase 2 For Phase 3 Rank Issue Rank Issue Rank Issue Rank Issue 1 Parking 1 Parking 1 Parking 1 Rent 2 Rent 2 Rent 2 Safety 2 Safety 3 Safety 3 Safety 3 Rent 3 Parking 4 Crime 4 Declining Sales 4 Crime 4 Crime 5 Declining 5 Competition 5 Declining 5 Marketing Sales Sales 5 Competition 5

6 Question 5A - What programs would you participate in to help you improve your business, if they were available to you? Overall Response: #1 Marketing Assistance #2 Business/Strategic Planning #3 Lease Negotiations #4 Access to Capital/Financing #5 Façade Improvements Phased response: Phase 1 # 1 Tie Marketing, Access to Capital Phase 2 # 1 - Tie Marketing, Lease negotiations Phase 3 # 1 - Marketing Question 5B -What would prevent attendance from programs offered? The majority of responses indicated that time or scheduling could be problematic. A few responses expressed concern with cost. Phase 1 Time (53%) Cost (15%) No Need (7%) Other (25%) Phase 2 Time (50%) Cost ( 0%) No Need (20%) Other (30%) Phase 3 Time (75%) Cost (25%) No Need ( 0%) Other ( 0%) Question 6 - Are You aware of the County s efforts to Revitalize Wheaton? Phase Yes No 1 81% 19% 2 80% 20% 3 95% 5% All 3 phases* 84% 16% Question 7 How did you learn about redevelopment? 1 - Newspaper articles 2 - County Staff or Other Businesses (Tie) 3 - Customers 4 - Meetings or Flyers (Tie) 5 - Neighbors 6

7 Question 8A -How do you think redevelopment will affect you? Phase Good Bad Don t Know 1 16% 33% 51% 2 35% 11% 54% 3 42% 0% 58% Total Survey 29% 17% 54% Question 8B Please Explain How Your Business will be Affected Representative comments: Phase 1: Worried that the lack of parking will stop my customers from coming Store access for customers; Truck traffic Business will be good when construction is over but bad during - parking and traffic issues. Construction will stop my customers and block my view Phase 1 had a response rate of 81% Phase 2: More clients Improve the image of Wheaton and hopefully make employees and customers feel safer when coming to our office via Metro. Also more access to desired businesses and services Our business depends on the Latino population, so if the population falls, so does our business More Customers, more sales. Applying for new residential units will bring more customers to my business Phase 2 had a response rate of 47% Phase 3: Rent increase After redevelopment I believe we will have more foot traffic As redevelopment happens, parking & traffic patterns shift, rents rise, etc. I think there will be myriad effects. Maybe my business will increase Phase 3 had a response rate of 42% 7

8 Question 9 What are plans during redevelopment General theme of comments: Keep on Stay in business Cope No plans Question 10 What meeting have you participated in? 1. Town Meetings 2. Police/ Business Meetings or Resource Partner Meetings (Tie) 3. Advisory Board Meetings 4. Chamber of Commerce Meetings or County Executive Forums (Tie) Total response rate = 37% 8

9 2012 Wheaton Small Business Survey Summary The Department of General Services Wheaton Redevelopment Program, in cooperation with the Department of Economic Development, is pleased to announce the results of the 2012 Wheaton Small Business Survey. From April 4, 2012 through May 30, 2012, the Wheaton Redevelopment Program, part of the Department s Office of Planning and Development, conducted a survey of small businesses within the Wheaton Urban District. The purpose of the survey was to: Assess the general small business climate in Wheaton; Identify areas of need relative to general business operations under present economic conditions; Better understand Wheaton Small business owners attitudes about redevelopment in Wheaton; Identify areas of need relative to anticipated impacts from proposed County-related redevelopment; and, Serve as a tool for shaping County policy/programs related to small business assistance. Background With the assistance of the Wheaton Urban District Safe Team, printed surveys were individually delivered to 298 businesses in the Wheaton Urban District. Responses were received from 108 businesses - a 36% response rate. The survey was distributed in 3 phases, based upon geographic location within the Wheaton Urban District, between April 4 and May 30, A map illustrating the phases can be found at the end of this report. Businesses located in Westfield Wheaton Mall were not included. Given Wheaton s multi-ethnic composition, the survey was available in four languages: English, Spanish, Chinese and Vietnamese. Seventy-nine percent (79%) of the surveys were completed in English. Sixteen percent (16%) completed the survey in Spanish, four percent (4%) in Chinese, and one percent (1%) in Vietnamese. Survey participants had the option of completing the survey online, through Survey Monkey. Only twenty-three percent (23 %) responded online. Ninety-two (92%) percent of online responses were in English and eight percent (8%) were in Spanish. No other non-english responses were received online. Survey participants had the option of responding anonymously or identifying themselves if they wished to do so. The majority seventy-two percent (72%) - identified themselves and provided contact information. 9

10 Summary of Findings A significant number of survey participants represent mature businesses Fifty-one percent (51%) of survey respondents have been in business ten years or more, with another ten percent (10%) having been in business at least five years. Thirty-nine (39%) percent have been in business for five years or less. A significant number of survey participants currently believe that business is doing well. Ninety-six percent (96%) of all survey respondents answered this question, with forty-six percent (46%) expressing a positive assessment - good or great about their business. This is significant, given the economic downturn that began in 2008 and the slow recovery that has persisted. Thirty-nine percent (39%) characterize business as fair, and fifteen percent (15%) state their business is in trouble or doing poorly. Throughout the Downtown, the top three immediate business concerns are consistent. From a list of fifteen issues, businesses were asked to identify and rank, in order of importance, their five most immediate business concerns. For all three survey phases, Parking is the number one concern, with Rent and Safety ranking second and third respectively. The vast majority of businesses in Wheaton lease their space. Lease costs and landlord-tenant issues are a major concern. Ninety-Two percent (92%) of survey respondents lease their space, and more than half (56%) are in five-year leases. As stated above, assistance/advice regarding lease negotiations ranked third out of fifteen identified businesses concerns. The majority of business owners are aware of redevelopment efforts but opinions on its effect vary. Eighty-four percent (84%) of Survey respondents were aware of the County s efforts to revitalize Wheaton. More than half of them fifty-four percent (54%) are unsure as to whether redevelopment will be good or bad for their business. Twenty-nine percent (29%) believe that redevelopment will be good with comments showing optimism for increased customer traffic. Seventeen percent. Seventeen percent (17%) believe it will be bad, citing loss of parking, business disruption due to construction, and loss customers due to inconvenience. The majority of respondents are interested in Technical Assistance to improve their businesses. Seventy-three percent (73%) of respondents indicated an interest in participating in technical assistance programs to address the following needs (in order of priority): Marketing, Business/Strategic Planning, Lease Negotiations, Access to Capital/Financing, and Façade Improvements. Print media is the primary source of information on Wheaton s redevelopment While businesses cited multiple sources, newspapers are their primary source of information regarding Wheaton s redevelopment. Conversations with County staff and their customers were second and third respectively. 10

11 Next Steps Parking Parking is the prevalent concern for Wheaton business owners, both for the present and the future. Increased coordination between the Mid-County Regional Services Center and the Department of Transportation s Division of Parking Management, and improved channels of communication with the Wheaton s business community can provide the ability to monitor and address current concerns as well as provide a better understanding of existing parking supply and demand in downtown Wheaton. Accessibility during development and future parking supply dominate survey comments where concerns are expressed about redevelopment - particularly as it relates to the County s proposed project on Parking Lot 13. The County and the Maryland-National Capital Park and Planning Commission are currently identifying their respective programs of requirements (POR) which will subsequently yield a Concept Plan, defining the scope of the proposed redevelopment on Parking Lot 13. Once the project scope is established, the Department of General Services will, as described in the FY CIP, retain consulting services to provide a comprehensive parking study to identify potential redevelopment disruptions to parking supply and demand, the related impact to existing businesses, and potential solutions (including, but not limited to signage, parking management, and temporary parking ). The selection of a parking consultant is anticipated within the current (FY13) fiscal year. Rent The residual impacts of the recession and the ability to manage escalating rents after development are the second greatest concern for survey respondents. This concern is further supported by survey respondents expressing a high level of interest - it ranked third - in obtaining technical assistance regarding lease negotiations. The Department of Economic Development (DED) is currently in the process of establishing the scope and criteria for the Small Business Assistance Program established through Bill 6-12, Economic Development - Small Business Assistance. Technical assistance, called for in the legislation should address commercial leases and lease negotiations in some form. Offsets to rental expense should be considered a legitimate use of Program funds available to mitigate the impacts of County-initiated redevelopment. Safety Whether a perception or a reality, safety in downtown Wheaton was the third major concern identified by survey respondents. In August, Council members Navarro and Reimer issued a memorandum announcing the formation of the Wheaton Public Safety Working Group. The Group will seek to implement, where appropriate, outstanding recommendations from the 2004 Wheaton Public Safety Report; establish a mechanism for community outreach; identify gaps in existing public safety services; develop strategies to improve perceptions about public safety in Wheaton; and, provide, where necessary recommendations to the County Executive and County Council. 11

12 The Workgroup will include County Council and County Government staff, residential and business representatives including small businesses - and will be supported by the Mid-County Regional Services Center, The Wheaton Urban District and the Montgomery County Police Department. A copy of the August 9, 2012 Memorandum is attached to this summary. Marketing Most survey respondents identified marketing as the Number One area where technical assistance is desired, recognizing that the upside to redevelopment is the potential for growth by capturing new customers that redevelopment can bring. In addition to technical assistance a coordinated, comprehensive strategy and implementation timeline well in advance of actual construction - should be developed to promote the support and patronage of those businesses that will be impacted by redevelopment. The Need for Business Assessments The principal means for addressing the impacts of County-initiated redevelopment in Wheaton will be the Small Business Assistance Program, administered as an adjunct of the Economic Development Fund. While Bill 6-12 requires the Department of Economic Development to develop the program, no provision has been made to inform the level of funding the program may require. Appropriate levels of funding bear direct correlation to the strength or weakness of the individual businesses the Program seeks to address, and the type and degree of assistance a particular business needs, whether it be technical assistance, financial assistance, or both. Providers that offer technical assistance to small businesses could be retained to conduct these business assessments. This approach delivers assessments, and a better estimate of program costs, while allaying concerns about how such an effort could be staffed departmentally, as well as provide an independent level of analysis to inform the Small Business Assistance Program s scope. In conclusion, the County is grateful for the responses received from the small business community, which allow the county to work proactively in supporting small businesses as development progresses in Wheaton. 12

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