Opinion: BKD's dollars need to stay downtown

New theaters will bring thousands of new patrons who will want to park once and enjoy an entire evening strolling from one destination to another. New residents will increase the ownership and sense of pride in the area, as well as provide a loyal base for restaurants and retail. New hotel rooms will attract overnight guests, business travel and conventions to downtown.

However, the spending habits of all three of those groups will be primarily on nights and weekends. In order for restaurants and retail to thrive, downtown employees must broaden the customer base during the lunch hour and after work.

At a recent Tax Increment Financing Commission meeting, Springfield Economic Development Director Mary Lilly Smith presented information from the International Council on Shopping Centers (“Office Worker Retail Spending Patterns, 2004”) that estimates the average weekly lunch expenditure for downtown office workers is $26.80, averaged over three meals.

Those employees who stop for drinks and/or dinner after work spend an average of another $44 weekly.

One of the downtown area’s most significant employers is accounting firm BKD, which occupies about a third of Hammons Tower.

Using the above statistics, BKD’s 261 employees could spend as much as $960,000 per year in direct downtown expenditures (not counting retail purchases, YMCA memberships, Springfield Cardinals games, etc.).

BKD has forecasted an additional 124 employees during the next five years, which could bring another $456,000 in annual revenues to the downtown area.

In addition, if BKD relocates to a new downtown facility, there could be an additional 300 employees that could “backfill” the Hammons Tower space vacated by BKD.

Adding in another 200 new employees projected in a speculative office building on the arena site could bring another $740,000 per year. All-in-all, BKD remaining in the downtown area could result in more than $3.25 million in revenues for the downtown dining and entertainment industry, based on International Council on Shopping Centers’ statistics.

Retaining major employers such as BKD – regardless of which proposal the city selects for the arena site – also would be an important signal to other businesses considering a move.

In the past year, several employers have expanded their downtown presence, including Conco to Wilhoit Plaza, Randy Bacon’s photography studio to the Monarch Art Factory, and Dake Wells Architecture above Well Fed Head Books. CoxHealth committed to invest $55 million in its north campus, which will help support Commercial Street’s redevelopment just two blocks away.

New businesses are deciding to move to center city as evidenced by ACR Nally’s upcoming move to Olive Place, adjacent to College Station and Butler, Rosenbury & Partners. Owner Lisa Nally stated, “When we needed space to support our broadening scope of service, downtown really meshed well with our priorities. We needed convenient access to our clients and vendors, along with dining, entertainment and recreational amenities for our team members. Center city provides all of this, along with a dynamic, energetic atmosphere.”

During the next three to five years, Jordan Valley Park magnet projects such as the Roy D. Blunt Jordan Valley Innovation Center, the crime lab and the West Meadows will attract complementary development along Boonville and adjacent to Jordan Valley. Greenway trails, bike lanes, public transportation, restaurants for breakfast, lunch and dinner meetings, and new retail stores will continue to enhance the amenities available to employees and customers.

Major employment areas

With Government Plaza, Missouri State University, Ozarks Technical Community College, Drury University and CoxHealth located in center city, online firm Demographics Now estimated that in 2006 there were 24,716 employees working within one mile of downtown.

That number is significantly higher than the four other identified activity centers across Springfield.

Activity Center Employment Comparisons (one-mile radius)

Walnut and South 24,716

Battlefield and Glenstone 21,149

Division and Highway 65 6,653

I-44 and Kansas 2,147

Sunshine and West Bypass 1,597

Financial incentives

In addition to the proximity to clients and activities, developers and businesses also consider center city locations for the potential savings from local, state and federal economic development programs such as historic tax credits, Enterprise Zone tax credits, Chapter 353 tax abatement, small business loans, façade loans and brownsfields grants.

Each business has its own key criteria for site selection.

Now more than ever during the last 30 years, center city is re-emerging as an option worthy of consideration.

Rusty Worley, executive director of Urban Districts Alliance, can be reached at rusty@itsalldowntown.com.[[In-content Ad]]