News - Written by Mandan News on Thursday, October 29, 2009 13:32 - 0 Comments

For rent: vacant storefronts

By Brian L. Gray

 

In an effort to attract businesses into Mandan’s downtown area, the city will be renting currently vacant buildings to retailers for a reduced price.

The city has set aside $60,000 for this program, using money from the business development 2010 budget, which has been set aside for a retail incubator or other programs aimed at bringing in new businesses to Mandan.

Last Tuesday, the Mandan City Commission approved the passing of the program, called the Downtown Retail and Restaurant Rent Subsidization Program. The Mandan Growth Fund had previously approved this action on Oct. 13 before it went to the city commission for approval.

The proposal will use sales tax dollars to help new retailers rent for one year. Businesses that are eligible will receive assistance up to 50 percent of its monthly rent, or no more than $3 per square foot for retail and no more than $5 per square foot for restaurants.

The program is proposed for Mandan’s downtown area, along Main Street and First Street between Eighth Avenue N.W. and Sixth Avenue N.E. Its future plans are to fill vacant storefronts, stabilize the central business district and create an active district of businesses.

Mandan Business Development Director Ellen Huber said, “Retail needs a critical mass of residents and vice versa. Mandan retailers also need more retailers. A larger downtown cluster of retail will better attract customers on multi-purpose shopping trips.”

Huber said there has been a lot of improvement to the downtown area in its physical aspects following the remediation process, with 36 businesses at this point that have taken part in the Renaissance Zone and storefront improvement programs, but the number of empty lots remain a concern.

“We still have a high vacancy rate in our downtown core area. Within the downtown core area, there are currently 25 properties with vacancies available,” Huber said.

She cited a 2008 survey voted on by residents, which showed that retail shopping is the most important factor in improving Mandan.

For businesses to be accepted, they must be open at least six days and 48 hours each week. The program will be done on a first come, first serve basis.

A copy of the program can be viewed at cityofmandan.com, or is available upon request at the City of Mandan Business Development Office, at 667-3485.

Commissioner Jerry Serhienko said he was in favor of this, because he believes it will help bring in new businesses. “I really like this approach. And if we implement it correctly, there’s no reason that this isn’t going to work,” he said.

Mayor Tim Helbling said in the number of calls he has received, more people have been in favor of the program than against. “Some say, ‘let the market take care of itself,’ but I would hate to see what Main Street Mandan would look like today if we hadn’t taken the steps that we did,” he said, referring to the city using money to help boost private businesses during the remediation efforts.

“The good thing is that we invest in this for only one year, and if it doesn’t work, we take another direction,” Helbling said.



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