Released November 2, 2009

MADISON, Wisc. -- There are compelling reasons to be optimistic about the ability of Wisconsin’s small town business districts to rebound from the economic downturn, according to experts from the University of Wisconsin-Extension.

"Downtowns can take advantage of consumer, economic and environmental trends that direct activity back to their central business districts," says Bill Ryan, community development specialist with the University of Wisconsin-Extension. "While downtowns are all different, opportunities are out there."

According to Ryan, downtowns have historically met important needs, such as housing, office and retail space and entertainment. Unlike shopping centers developed for national retail chains (which are now experiencing vacancies), downtowns serve different functions that allow one sector to rise even as another declines.

"Many downtowns have recession-proof draws," says Chuck Law, community planning and design specialist with UW-Extension. "While high-priced restaurants and live theatre might be patronized less in a recession, farmers' markets and children's museums will still be on the list of local outings. And many downtowns' focus on education, health care and government services further insulates them from consumer spending swings."

Downtown housing continues to be an important component of the retail mix. While condo development and sales have slowed, the market for rental housing is strong in many markets. Long-term, demographic trends remain favorable for downtown living given both older and younger people's growing preference for urban, amenity-rich living.

Ryan also points out that downtowns are benefiting from a growing interest in supporting local economies. In many cases, consumers are focusing more on value than price, factoring in the cost of travel and the service of local retailers. Personal attention, unique products, and outstanding service and support--often the hallmark of downtown retailers--will continue to attract new customers seeking a local economic connection.

Supporting downtown retailers can even be considered "green," Ryan says. For example:

--Downtowns are centrally located and convenient and trends indicate they will become even more accessible with better bus and light rail systems. Local governments are paying attention to strengthening public transportation systems with support from the federal government, which is seeking to reduce dependence on fossil fuels.

--Volatile gas prices are causing people to rethink their driving and how much fuel they can save by working or doing business with establishments conveniently located downtown.

--Environmental benefits accrue from reusing and improving structures rather than planning new development. Significant opportunities exist to retrofit existing buildings with green technology. Both energy-efficient improvements and weatherization of housing and public buildings are included in the American Recovery and Reinvestment Act of 2009. While new construction has slowed, the remodeling industry has been less affected by the economic downturn. More and more communities are finding creative uses for existing buildings.

Support for entrepreneurs is another plus provided by central business districts. "Downtowns are places that truly support entrepreneurship," says Ryan. "The environment provides social and business interaction, diversity, authenticity and amenities that appeal to people with various talents."

And families are turning more to pedestrian-friendly activities close to home, frequenting local libraries, museums, theaters, parks, athletic facilities, civic buildings, schools, coffee shops and retail establishments for entertainment.

"Downtowns offer a 'sense of place' that is increasingly important to residents," Law notes. "The community's natural, social and cultural amenities, places to worship, dine, shop, and relax, and the histories and memories associated with those elements, are often found in and around downtown."

Ryan advises communities to take full advantage of their downtowns' competitive strengths.

"Community leaders can build upon downtowns' diversified mix of uses, contributions to the local economy, promotion of sustainable development, support for entrepreneurship, and sense of place."

For more on UW-Extension's work to support and revitalize Wisconsin's downtowns, go to http://www.uwex.edu/ces/cced/downtowns/index.cfm

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http://www.uwex.edu/news/2009/11/experts-see-bright-future-for-wisconsin-downtowns

Contacts: Bill Ryan, 608-263-4994, bill.ryan@ces.uwex.edu

Chuck Law, (608)265-2501, chuck.law@ces.uwex.edu