Less Parking, High Density means more Revenue

Property values are something that are vital to the cities in Tennessee and, for the most part, most cities in modern America. Almost every state has a revenue model that allows cities and counties to collect property taxes to pay for services. It is important for cities to, therefore, protect and increase property values. This is why we have a property maintenance officer, this is why cities condemn and demolish old, dilapidated homes and buildings, and this is why cities control development patterns – all to protect and increase the property values.

One way of comparing property values is by using a similar unit. An analysis suggests using the value per acre as a measure to compare developments. Using this process, can you guess which buildings in the city are the most valuable? Walmart? Lowes? Maybe one of our shopping centers? Oh, what about Snap-On? Certainly, these businesses do provide a lot of property taxes to the city and county, but the answer is no. On a per acre basis, the most valuable commercial property in the city is the Downtown Branch of Carter County Bank. The value, $5,765,670 (per acre of course). In other words, if we had an entire acre of property and built nothing else on it except buildings like the Downtown Branch that property would have a value of just over $5.7 million! Walmart on the other-hand, has a per acre value of $523,907, Lowes $537,179, and West Towne Shopping Center $392,903.

So, what could cause such a deviation in these values? After all, it’s not like Walmart or Lowes is a cheap building. Well, one of the biggest differences is the use of the property. Think about the Downtown Branch of Carter County Bank – the building takes up almost all the property and has a second story that is used for offices. Walmart, Lowes, and West Towne have huge buildings (in comparison) but have even bigger parking lots. Walmart alone has just under 9 acres of parking lot! The value of the parking lot is essentially $0. Having a vacant property with a parking lot on it provides little to no increase in the property value.

While parking lots are a necessity, an almost 9-acre parking lot (which was required by the city at the time) seems a little excessive. How many times a year do you see it full? Even requiring Walmart to have 1 less acre of parking could have resulted in having another restaurant like the size of Bojangles or Captain D’s. These would have generated at least increased the property value more than a parking lot resulting in additional tax revenues.

While the answer is certainly not getting rid of parking requirements, it might serve us well to reduce parking requirements and encourage denser development. This will help ensure that the city is getting the best return on our investment both when we invest roads and water and sewer infrastructure into a project. Let’s talk about it!

Bringing Main Street to Downtown Elizabethton

You may have heard more recently about the national Main Street Program. This is a program founded by the National Trust for Historic Preservation as a way to help historic downtowns and commercial neighborhoods revitalize. The program has been used across the county with much greater success than most other revitalization program. As a matter of fact, there are over 1,600 current Main Street communities nation-wide, 34 Main Street cities in Tennessee, and 58 Downtown cities (Main Street’s program for smaller towns) in Tennessee.
 The Main Street program helps communities organize and develop a community vision for their downtown. This is essential to ensure that we make sure we’re moving our downtown in a consistent direction forward. The program also looks at market capacity. What types of businesses do we need that would do well in the Elizabethton market. That information is then used to help develop a realistic vision for the future of the downtown and to help recruit new businesses to downtown.
 The program then utilizes the community vision and market information to help transform a downtown. During the transformation phase (which is never-ending), the program utilizes four areas of focus to ensure that community goals and the vision are being accomplished – economic vitality, design, promotion, and organization. Commonly, each of these four points have their own sub-committee of the larger Main Street board which oversees the program. Each of these sub-committees would contribute to the vision by focusing on their point. As time moves on and each of these points gain a clearer focus, and downtown development will begin to improve.
 A working committee of people with a range of ages made up of city councilmen, downtown businesses, downtown property owners, and chamber of commerce representatives, have been working and considering options for downtown revitalization and enhancing our downtown to take it to “the next level.” The committee has heard from some national and state speakers on the topic, visited other communities to see what they’re doing, and studied options that the State of Tennessee has to offer.
 At this point, they are considering recommending that Elizabethton become a Main Street community but are still looking for input. They’ll be holding a public meeting Wednesday, November 7^th at 5:30pm and another on Thursday, November 8^th at 8:00am at the Coffee Company to present this idea and gather input from the community to see if there is enough support locally.
 Elizabethton becoming a Main Street community brings a lot of positives for our downtown, but there are also some challenges. The Main Street program requires a full-time staff person, funding, volunteers, and, most importantly, downtown business and community support! This is not a program that the city can just create, and the success will happen. The most successful programs are usually independent of city government with their own funding sources and volunteers. In short, the most successful programs involve you. The program will not be successful if citizens who want to see success in downtown do not participate, attend meetings, and volunteer for events. We all have busy lives, but volunteering on the board or sub-committee for a few hours a month or giving your time to a downtown summer event is the only way success will happen. Are you in? Let’s talk about it!