A new kind of downtown organization
I have always had a soft spot for nonprofits working on the revitalization and economic development of downtowns, main streets and…
I have always had a soft spot for nonprofits working on the revitalization and economic development of downtowns, main streets and historic districts. I love the passion they put into their work, their commitment.
I have a tremendous appreciation for their success as well. Walking on dynamic streets where small businesses thrive among quirky details and unique upper floor apartments is a fantastic experience.
In my work I have had the opportunity to be close to several of these agencies. Each one I’ve been in contact with has relied on members’ fees and government contributions to operate.
Not a single one -that I know of- is an autonomous entity with the capacity of surviving on its own should the economy force the members to defer payments and government to make cuts to spending.
So I started thinking on how these fantastic organizations that do so much can leverage that enthusiasm and knowledge and become profitable, autonomous and continue to provide their services when they are most needed: during economic downturns.
The answer I came up with is Let’s help them have an autonomous operation by becoming developers and managing property in their area of intervention. That sounded like a simple idea and immediately I thought of a tailored Incremental Development Alliance-style bootcamp for BIDs, SBOs, Main Street and Downtown Business Associations and other similar organizations.
Going further, a more focused type of training could include becoming Real Estate brokers that link property owners with innovative businesses in schemes where rents are variable, dependent on sales or where landlords are partners of the businesses they rent to. There’s space here for Public-Private Partnerships as well.
Win-win.
So think of it. Picture, if you will, an organization that uses one or several of the many platforms currently available to leverage funds. Patronicity and Mainvest come to mind (not affiliated). They could purchase property within their district and redevelop to suit their office needs, have extra room for community programs and even some space to rent for a cafe or a restaurant to liven things up.
More complex solutions can include the CRE brokerage mentioned before as well as incubation for small community-based businesses (think of Y-Combinator, also not affiliated) in which the organization becomes partner with emerging businesses and helps them get in shape to contribute to the local economy.
Now think of a B Corp-style company that would do all that as a service. From engaging the client and counselling the shift to teaching the skills necessary to own property to implementing the incubator and community spaces to leveraging the funds to make it real. It could even include daycare to broaden the reach. All Place-based and community oriented.
Just an idea that occurred to me but who knows, a co-founder might read this. And Medium might just be my INTP way of pitching it.