About H Street Main Street -- My opinion

The Von Hoffman book identifies the common threads of successful neighborhood based revitalization efforts. People ask why I am not with H Street Main Street and it comes down to vision and trust.

This entry is stitched together from three emails I wrote to my then fellow board members last August...

Email #1 --First we need a common vision (sent 8/9/2004)

1. I don't think we have a clear vision of what our organization is set to accomplish. Maybe people disagree with me, but I believe this. I think in order to be able to do fundraising successfully, we have to have a commonly accepted vision.

People might disagree with me that the success of our district is incumbent on creating destination retail that is unique, based on independent stores and experiences such as at H Street Playhouse or the Atlas. But that is the only way successful neighborhood commercial districts and downtowns are able to compete with shopping malls. The fact is the whole "outdoor-lifestyle" trend such as Bethesda Row or the Bowie Town Center is based on the best of the urban experiences. But we don't need the same Gaps and Old Navy's. We need the Sisterspaces and the Cake Loves and the NZens and the Capitol Hill Bikes and the Men's Fashion Centers and the Imagine U Uniques and quality independent restaurants, etc.

Otherwise, people will just go to the Target shopping center on Rte. 1, to Pentagon City or Bethesda Row, or to the closest Wal*Mart or Costco. Or to Iverson Mall (see below) for Value City...

Focusing on chains will only homogenize our district and provide few reasons for people to come and shop on our corridor. It will be difficult for our strip to ever compete with the most successful of such experiences... (cf. The Carytown description I sent to the list earlier today. It's a perfect example of what we should be doing, we just have to figure out how to do that in such a way that the appeal is a bit more diverse.)

2. One of the necessary steps to working out a common vision is to conduct a fine-grained market study. I know that people believe that such as study was conducted as part of the H Street Strategic Development Plan, but in my opinion that was a very general plan that isn't specific enough to provide detailed guidance on a block by block basis. It also isn't enough to work with as as suasion with property owners and merchants.

Related to this is why I think the Design Committee initiative to work on this as part of their project with the Catholic University student architecture urban design studio is so important. We need detailed proposals to guide HSMS interaction with property owners and merchants as well as to broaden peoples's vision of what is desirable. But we need the market study to provide the analysis to justify imagination as well.

3. In my opinion, the current definition of our commercial district is downmarket, working-class oriented. In marketing, it would be called a convenience good focus -- low-cost products that are substitutable, with little product or store loyalty on the part of the customers (except for the athletic shoes). There are few stores that provide a wider range of products that might appeal to different demographics.

Few people in the neighborhood, living north or south of H Street, shop on the corridor. There are many reasons for this. Part is the product mix, part is the condition of the corridor, particularly the condition of the buildings, the interior of stores, and the filth. Even the H Street Connection private lot is barely maintained. Etc.

Some people have the idea that only welfare recipients live north of H Street. This is categorically untrue. But it is a perception that we have to deal with. (And a good intercept study of where current shoppers come from would help.)

Judging by the time I spend on the street, there is less vehicular and pedestrian traffic on the corridor in all dayparts. The streets seem dead to me. During rush hour the traffic isn't really that bad--so much that I no longer feel that endangered while bike riding, and it's possible to jaywalk because there are big breaks in the traffic--and Saturday the street is empty.

The 8th and H intersection looks busy but I think this is deceptive. The "crowding" on the 700 and 800 blocks is generated by bus transfers between the X and 90s buses (two of the busiest lines) and it isn't necessarily the case that these transferees are buying goods and services. I am not saying that we don't have successful businesses. We do. As Keith pointed out, Murry's store on H Street is their #1 store. The Sports Zone does $1.5 million/year. I bet that Fashion One and Shoe City do $2-$3 million/year. Rite Aid recently extended their hours to 10 pm, etc.

But I think a lot of the independent stores are having problems. And I think this is because the "downmarket" demographic is shrinking, both within our neighborhood and the H Street retail trade area, and within the greater region. So to me, getting stores like Family Dollar merely "strengthens" a shrinking and under-successful commercial district retail strategy.

4. Until we have that common vision we can't set priorities, we can't make good "asks" in fundraising, and we fail to coordinate the various efforts of the HSMS officers, executive director, committees, city government agencies, institutions in the neighborhood, property owners, merchants, and other stakeholders.

I think that the vision should be a viable urban commercial district, that functions as a distinct destination, that appeals to a wide variety of market segments and demographics (race, class, type of household), that is based on the development of leading edge independently-owned businesses that provide excellent customer service, product choices, and uniqueness, in well-designed and attractive stores, with high-quality marketing and image development values (see the Stella Blue logo at for an example of one of the only H Street businesses that in my opinion is leading edge in this dimension), on a street that is attractive and well-maintained.

Remember that women conduct 80% of all retail transactions. If women don't feel comfortable on H Street, they won't shop there. Without women as customers, our Commercial District can't be successful.

I think I have mentioned that recently I have delved into the tourism literature. Obviously, we'll never be a tourist destination, but the approach and methodology is still relevant to our work.

Tourism development is all about readiness and destination and experience management. We have to provide excellent experiences, or we won't have customers.

I think our lack of a common vision, is based on different assessments of the readiness of our commercial district to appeal to additional market segments, in particular market segments that in fact live in the neighborhood.

Email #2 --It's a beginning, but just a beginning in my opinion

A quality infrastructure is necessary to have quality services. Together, this makes a great place to live, work, shop, and play. In order to have the H Street NE Commercial district become a viable, vibrant, successful destination:

1. the corridor has to be clean, attractive, and safe in all physical dimensions; and
2. we have to have excellent and interesting stores, restaurants, and attractions.
   The first revolves around clean and safe activities, facade improvements, store interior improvements, signage, etc. H Street is a mess!!! People of all races comment on it. I got an email from a newspaper editor asking why is H Street so dirty, etc. The second has to do with the development and improvement of current and potential businesses, and properties.
   
   Dealing with these points in an integrated and complementary fashion is our biggest potential source of funds. In my opinion these activities are what we need to focus on to achieve the objective of a successful H Street commercial district:
   
   
3. Cleaning, beautification, and ambassador services, including night-time ambassador services at 8th and H and on the 1300 block at a minimum.
4. Other streetscape improvement projects to be defined by the Design Committee, including facade improvements.
5. Business development improvement activities for current stores and businesses.
6. Business recruitment and property development activities targeting vacant or underutilized spaces, in addition to broadening the mix of stores, services, and activities on the corridor.
7. Image development-programming-communications (banners, special events, directory, advertising, website, newsletters, etc.) (Promotion, Organization)

Until H Street is more successful, the close to one billion dollars of investment extant or proposed on and near the corridor will be at risk. This investment is by companies such as Dreyfus, Akridge, Potomac Development, Jemal, Abdo Development, JBG-Hechinger, Rappaport, the nonprofit Union Station.

This perception of risk is the biggest motivator on the part of potential funders. It is not acknowledged to the degree that I think it ought to be. This is how the University City District in Philadelphia is funded, by contributions from involved institutions and stakeholders. Unlike most of the "BIDs" in Philly, UCD gets no TIF-based revenues. It also allows them to provide significant services within the residential part of the neighborhood which is important to the University of Pennsylvania, because students and faculty reside there.

Most of the organizations identified in the "Renaissance" fundraising proposal provide project-specific funding. Such funding won't support general operations, except for a modicum of dollars for overhead, and that will be pretty small. It also won't address H Street's most pressing needs for commercial district revitalization because those organizations fund according to their priorities and interests, not ours. On occasion those interests will be in synch. At other times they will be discordant. And it won't be in our interest to fundraise for projects strictly because money is available. We need to focus on the specific needs to bring about a successful corridor.
One exception is Fannie Mae, that might, emphasis on might, be willing to think more broadly. So might banks, because they have community reinvestment requirements. But banks with DC operations are approached by absolutely every organization in the city. So is Fannie Mae.

Dreyfus, Akridge, Jemal, JBG-Hechinger have to be approached for upwards of $50,000/year in funding for the next few years. I don't know what the capability is of organizations like Rappaport, Gallaudet, and the HSCDC, but they have to be part of this funding stream, since they will be direct beneficiaries of improvements on the H Street corridor. These are funding sources that pretty much are exclusively available to H Street Main Street. Most other Main Street programs have no call to approach these organizations. (Barracks Row does on M Street SE. Jemal owns buildings here and there in Main Street districts. Akridge investments are mostly downtown. Etc.)

These programs need to be costed out to the utmost detail, including overall management. We need to actually do cleaning services for a week and see how we can tweak it. We might not need as many people as one might think, phased shifts, etc., and better utilize personnel. Plus we can provide fee for service work to H Street Connection and Murry's and probably do a better, and less expensive job than currently provided services.

A BID won't be able to provide the kind of money we need, probably, because the tax assessment base isn't enough to fund such services at the required level. However, projections should be made about tax assessments over time, including new development, and perhaps this could change. (At current assessments, a BID on H Street would generate less than $100,000/year, and it is questionable on whether or not the HSCDC can be made to participate as a nonprofit organization. The two office buildings on H Street are assessed at $40 million or more and comprise 1/3+ of the total present value. Note: we haven't assessed the latest assessment numbers, which certainly have increased.)

At the same time, events like the H Street Arts and Humanities Festival and the proposed Spring Festival, as well as publications such as the H Street Business Directory can become significant sources of revenue, particularly if the sponsorship aspect can be developed into a significant revenue source. This will be need to be analyzed in great detail as well.

The chair of the organization responded with this:

No, Richard, Our nuts and bolts will be through active committees and true participation. We have a vision that was formulated by the community, the committees and the board. A vision that you help formulate and voted on. Once the committees get a real feel of what is needed and begin to fully engage their volunteers, at that point they will begin to implement the vision that has been developed. Reestablishing another vision is not the answer, not unless the board feels the current one is outdated. Our budget and fundraising efforts should be based on the collective goals of the all committees. What is needed is for you to buy into this vision.

Fundraising is the responsibility of all of the board members. We have proposed fundraising activities, this board shied away from them. I do not expect board members to do all the work, but to reach out and bring others in to help. The harvest is ready, but the laborers are few. In other words, H Street is ready for the picking, we need more volunteers.

I responded with this:

I don't think the organization has a common vision. I couldn't respond to the original fundraising memo as a result. I think we need a better strategy document for our fundraising mission.

As a committee chair, I am the first to not knock the role of committees in setting the agenda for the organization's development and execution of a revitalization strategy, but vision even within the committees tends to start with the committee chairs who help shape and develop the committee and its members. But after all, "leaders lead" or at least help shape ideas and push the envelope for best practices and excellence.

Without knowing what we are trying to create, it's hard to fundraise. What is the common vision that the community created? From the Strategic Development Plan (SDP), we can say living blocks 2-5/6, retail blocks 6-12, entertainment blocks 13-14 but what that means on the ground is a whole lot different in a practical way. Plus, there are some defects in the SDP vision. For political reasons, the SDP wouldn't say some things that needed to be said, such as using the air rights at Hechinger Mall or H Street Connection and redevelopment including housing, etc. And the 600 block should have been put in the retail core, because the buildings-spaces on that block allow for the large floorplates required by national chains.

I think it's clear that people want a viable commercial district, but I don't think we have an agreement on what this means within the context of our organization.

Community Vision as expressed at the Annual Meeting. There is no question that there is a great deal of commitment to the success of H Street on the part of all people in the community. The sentiment at the Annual Meeting was clearly in support of nurturing the present independent businesses, attracting and developing new independent businesses, and complementing this with some quality chains (such as a name supermarket, etc.). People at the Annual Meeting clearly were in support of maintaining and enhancing a diverse residential and commercial community. At the same time, the community expressed desires for a safe and attractive commercial corridor.

The vision in a nutshell = diverse community + diverse, quality independent businesses complemented by chains + an attractive and safe commercial district.

Such a vision ought to be directing the recruitment of new businesses, the reshaping of current businesses, and the development of a housing strategy (among other things), as well as a focus on accomplishing the rehabiltation of the physical environment in all aspects.

I guess I don't see congruence between what HSMS is doing and what the community says it wants.

Plus, I would say that any vision created previously needs to be modified by additional learning and changed circumstances. One of those changed circumstances is the new presence of Abdo Development.

And as I said in the previous email, in my opinion we haven't done the detailed fine-grained analysis really necessary to move forward. I say this based on the new businesses that are coming to the corridor. Additional hair and nail salons and dollar stores aren't broadening our mix of retail offerings. Neither is the conversion of a restaurant space to ground floor office on the 1300 block. (We are getting some positive additions, but there are still issues with product, marketing, and corporate image with even these businesses.)

Clearly then, neither SDP nor HSMS is having much impact on property owners or we wouldn't be getting the new businesses we're getting. A market study is one of the two major building blocks of a Main Street program. That would provide us with the detailed arguments we need to engage property owners and business developers to begin to change the dynamic.

Fundraising is the responsibility of the Board. No question there. I wouldn't say we've shied away from doing it, I would say it's taking longer to create the structure necessary to begin doing it successfully. But fundraising is a lot more than just having handouts to put in a folder with the HSMS logo on it. I wrote what I wrote because we need a viable strategy or we aren't going to be successful. Being able to successfully compete in a cacophonous and competitive fundraising environment means that HSMS must have a "unique selling proposition".

The most important statement in the second email that I sent is the fact that we have an almost unique situation vis-a-vis most of our peer organizations across the city in that corporations with a lot of money (developers) can be convinced that it is in their interest to provide to HSMS a great deal of money, because revitalization of the H Street corridor will enhance the value of their investments in and around the H Street corridor. Very few DC Main Street programs are lucky enough to be in a similar position. As a model example, the University City District in Philadelphia raises over $5 million/year in contributions provided by "motivated" corporations and institutions. (Part of the size of the budget comes from the size of their service area -- 160 blocks.)

But in order to be successful with such prospects, we need as detailed a business plan as a BID is required to have in order to determine what we need to be working on as well as the costing out of it so that we can ask for money in a confident manner, where our position-request is "unarguable." (Such analysis could also bolster HSMS arguments before relevant Zoning Commission matters with regard to mandated community benefits.)

That isn't necessarily going to come from the ground up from the committees, as important as they are. And it's more than just getting volunteers. I could write as long a memo about volunteer recruitment and development issues as this set of three emails and I'm not going to....