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One Year Plan
Two to Four Year Plan
Five Year Plan
Easton Commercial/Residential Lenders
Merchants National Bank
Lafayette Ambassador Bank
Bank of America
City of Easton Grant/Loan Programs
Facade
Loan Program block 100 through 400
Receive a 2% loan up to 30k
Easton Enterprise Zone fund up to 50k
City Maps/Zoning/Demographics
Satellite View
Zoning Map
Susceptibility to Change
Population Overview
Median House Hold Income
Physical Opportunity Overview Easton Data
Housing Permits
Industry Overview
Population/House Holds
Consumer Spending
Residential Development Activity
Employment Tend Forecast
Visitation/Tourism Overview
Commercial Development Activity
Short-Term Actions (Year One)
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The short-term actions focus on four critical areas that need to be addressed to
lay the
groundwork for implementation of a coordinated economic development strategy in
subsequent years. Three of these areas relate to the key issues identified by
the existing
conditions and trends assessment.
- Quality of Life: Take immediate steps to address quality-of-life issues,
including an
increased focus on crime and security; enhanced code enforcement and
maintenance;
and improvements to the physical appearance of the CBD.
- Capacity Building:
— Define roles, responsibilities, and partnership arrangements
for plan
implementation, starting with a downtown economic development summit
sponsored by the GEDP and the city — Use the city’s upcoming
update to the Zoning Ordinance as an opportunity to
revise regulatory requirements and procedures to facilitate economic
development
in the CBD — Develop a complete commercial property database and a
data collection and
monitoring system to obtain critical market data for the CBD on an
ongoing
basis — Identify financial and other incentives to be used to
“jump-start” priority
revitalization projects through public/private partnerships
- Marketing: Develop a unified marketing and communications strategy
to reach the
three target markets (residents, visitors, and businesses) and highlight
the progress
being made in downtown revitalization, using mechanisms such as media
releases,
city newsletters, a dedicated website, etc.
- Catalytic Projects: Identify and conduct financial feasibility
studies for “catalytic”
residential/mixed-use projects (i.e., projects that will have the
greatest effect in
generating momentum for additional private investment).
The mid-term actions address the three strategic initiatives/target
markets (market-rate
housing, increased visitation, and increased CBD employment). They also
include priority
capital investments to support the target markets.
— Based on the financial feasibility studies, initiate
catalytic residential/mixed-use
projects in the downtown core through public/private
partnerships (target: 100
to 150 new housing units in the mid-term timeframe) —
Provide incentives as necessary for catalytic projects to
reduce investment/
developer risk — Assist in marketing catalytic projects as
part of the broader CBD marketing
campaign
Economic Development Plan for the Easton, PA CBD.
— Initiate a retail recruitment strategy (marketing,
incentives, etc.) to attract
destination retail stores and restaurants (target: a
cluster of eight to ten restaurants
occupying a minimum of 20,000 square feet in the 300 and
400 blocks of
Northampton Street) — Drawing on successful models
from other cities, explore creation of an “artists’
relocation program” to attract artists to move to Easton
and its CBD — Building on ongoing marketing efforts,
develop a working partnership designed
to increase visitation to Easton’s existing attractions
- Increased CBD Employment:
— Undertake an “industry cluster analysis” to
identify types of office/employment
uses that could be attracted to the CBD, with a
likely focus on governmental
functions and related professional and business
service firms — Develop and implement a business
recruitment strategy targeted towards the
office/employment types identified by the industry
cluster analysis (target: 25,000
to 50,000 square feet of office absorption in the
mid-term timeframe)
- Supporting Capital Investments:
— Implement streetscape improvements along 3rd
Street and Northampton Street
connecting to Lafayette College’s ongoing
revitalization initiatives, with the
objective of promoting increased interaction between
the college and the
downtown core — Implement trails and other
recreational improvements along the Bushkill Creek
corridor, connecting to the Lafayette College
revitalization area and trails along
the Delaware and Lehigh riverfronts — Redesign
Centre Square to improve its function as a community
gathering/
activity space — Implement visual improvements and
cleanup to two major gateways to the CBD:
S. 3rd Street/Lehigh River Bridge and US 22/N. 3rd
Street
Long-term actions are considered important to the
long-range future of the CBD, but
are likely to be deferred until the mid-term strategic
initiatives have been successfully
implemented. Because the action plan is considered to be
a flexible guide to decision-making
that can be adjusted to respond to changing
circumstances, this does not preclude earlier
action on selected projects (e.g., if significant
developer interest emerges in waterfront area
redevelopment).
- Waterfront Development: Develop an improved
riverfront park along the Delaware
and Lehigh Rivers in conjunction with boulevard
enhancements to Larry Holmes
Drive, thus creating a “showpiece front yard” for
the CBD
- Lehigh River Gateway Redevelopment: Redevelop
underutilized commercial uses in
the vicinity of the S. 3rd Street/Larry Holmes Drive
intersection for residential/mixed
uses
- Passenger Rail Service: Work to establish future
passenger rail service from New
York City/Northern New Jersey to
Phillipsburg/Easton, starting with participation
in the current I-78 Corridor Transit Study currently
being led by the North Jersey
Transportation Planning Authority
Economic Development Plan for the Easton, PA CBD
In addition to the short, mid, and long-term
timeframes, the action plan incorporates a
recommended phasing strategy for addressing the
three geographic focus areas:
-
First and foremost,
address the Northampton Street corridor and
quality-of-life issues
in particular to support existing investment
being made in the downtown core, such
as the Eastonian condominium project, and to
reinforce key anchors such as the State
Theatre and Two Rivers Landing/Crayola Factory.
-
Second, address the
Bushkill Creek corridor to leverage ongoing and
pending
investments being made by Lafayette College and
the Commonwealth of
Pennsylvania and link them to the Northampton
Street corridor and downtown core.
-
Address the
Delaware and Lehigh riverfronts, which are
underutilized assets, over the
longer term.
With its strong assets and the momentum for
change generated by current investments,
Easton’s CBD is well positioned for revitalization.
This Economic Development Plan
outlines the steps that can be undertaken by the
GEDP, the city, and public and private
sector partners to enable the CBD to reach its full
potential. Implementing the plan will
require not only concerted and coordinated action by
a range of partners, but also public
investments for improved downtown services, capital
improvements, and incentives needed
to move private development projects forward. As the
catalyst for economic development
in the greater Easton area, the GEDP will require
increased staff and other resources if is to
successfully lead the overall effort. The result
will be a revitalized CBD that once again serves
as a thriving center of activity, attracting
residents, visitors, and workers from Easton, the
Lehigh Valley region, and beyond.
The Facade Program is a zero interest loan
designed to help address or prevent any building
code violations on the exterior of your building,
help prevent the deterioration of the outside
surfaces, enable historic rehabilitation and create
a more visually appealing downtown Easton. Funds
must be used for the permanent rehabilitation or
improvement to the building’s exterior. The
rehabilitation must restore the building to its near
original state. Restoration must fall within all
building codes and standards. Facades include
exterior walls visible by the public, gutters,
signage, windows, paint, and decorative features,
storefronts and windows. The total loan amount
will be based on estimates from three licensed
general contractors. A two hour meeting with a
participating architect is provided free of charge
by GEDP.
You may be eligible for a loan with 2% interest
if you are a commercial or industrial business
located in or relocating to the City of Easton. This
loan program seeks to provide employment
opportunities by giving business owners incentive to
create and expand their business in Easton.
Funds must be used for constructing or renovating
existing property or purchasing machinery and
equipment, including store fixtures. This loan must
benefit the City of Easton by creating or retaining
low or moderate income employment. Rehabilitation of
property to enable occupancy is permitted. Projects
must use some private investment and measurably add
to the economic activity of Easton. Special
consideration will be given to projects that develop
or rehabilitate vacant or unused buildings in the
Easton Downtown Area or the Lehigh River Business
Parkway.
You are eligible to borrow $15,000 for each job
created, up to $30,000. These jobs must be filled by
persons meeting Easton’s standard for low or
moderate income status. A commitment to create these
jobs is also acceptable. You have 5 to 7 years to
repay the loan, depending on its use.
In order to encourage rehabilitation of building
facades and improve signage in the central business
district, the Easton, PA Main Street Program is able
to use funds from the Pennsylvania Department of
Community and Economic Development to assist
property owners in paying for improvements. Eligible
buildings must be located in the targeted Main
Street Area and must include commercial activity.
Any exterior improvement will be considered for the
grant including paint, maintenance, signage or
facade repair.
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• Easton’s population has exhibited a gradual
decline since 1960 as a result of outward
population growth and suburbanization of Northampton
County. In fact, the City’s
population decreased from 31,900 in 1960 to
approximately 26,200 in 2003 – a decline
of 18% and a loss of 5,800 residents. (By
comparison, Bethlehem lost only 2,800
residents – a 4% decline – and Allentown lost 2,400
residents – or 2% – during this
period). The 2000 Census reported 1,000 vacant
housing units in the City, more than
10% of the City’s housing stock. • Current (2005)
population estimates prepared by ESRI Business
Information Solutions
(a demographic forecasting service) suggest that the
City’s population has increased since
the 2003 state count to almost 27,300 residents in
10,000 households, a gain of 1,000
over the past two years. (As detailed below in Table
15, however, a review of historic
building permit activity does not support a
population increase of this magnitude). • Like
many municipalities across the United States, it is
likely that any recent increases
in population in Easton can be attributed to
diversifying racial and ethnic composition,
particularly an increase in the number of
Hispanic/Latino residents. These immigrant
groups may or may not be counted depending on
immigration status (see Table 8). • Over the next
fi ve years, ESRI forecasts that the City’s
population will increase by more
than 1,450 residents in 675 households to 28,700 (a
growth rate of 5%). The state
projections for 2010 suggest a far smaller increase
to 26,300 (a growth rate of only
0.3%). A critical means of ensuring that downtown
revitalization in Easton is successful
is to increase the number of downtown housing units,
whether in new construction or
rehabilitation/conversion of existing structures. Of
course, new housing may also occur
on vacant/undeveloped sites. According to the
Planning Department, in 2002 Easton
contained approximately 70 acres of vacant land that
may or may not be developable due
to environmental factors. • During the stakeholder
interviews, it was noted that Northampton County
appears to
be benefiting from outward population
growth/movement from the New York City
metropolitan area, in part as a result of
lower-priced housing. This anecdotal evidence
Economic Development Plan for the Easton, PA CBD
Existing Conditions and Trends 11 was confirmed by
U.S. Census estimates released in March 2006 that
Northampton County has grown by more than 20,000
residents (7.5%) since 2000. Presuming this
trend continues over the next five years, it could
be expected to benefit Easton and the
demand for new housing in the downtown area. • In
2005, the City’s median household income was
$39,990. Easton households are
slightly wealthier than their Allentown counterparts
($38,300), but less affluent than
households in Bethlehem ($43,400). The City’s most
affluent neighborhoods include
those on College Hill near Lafayette College. Over
the next five years, household incomes
in Easton are forecast to increase by almost 20% to
$47,700, suggesting real income
growth above the current rate of inflation. This is
a key determinant in the locationa
decisions of retailers.
• As illustrated in Table 14, Easton and
Allentown households exhibit similar expenditure
patterns but both jurisdictions lag behind their
Bethlehem, Northampton County, and
Lehigh County counterparts. For example, Easton
households spend $12,422 per year
on groceries, eating out, clothing, furniture,
entertainment, personal care products, and
computers. By comparison, Bethlehem households spend
$13,700 and households in
Northampton County spend $16,500 per year on retail
goods. • Based on the consumer spending data
Easton’s “buying power” totals approximately
$125 million per year for the City’s approximately
10,000 households. Of course,
these expenditures can be spent anywhere. The
challenge is to identify appropriate
implementation strategies that reinforce the capture
of these expenditures among existing
(and new) downtown retailers. • As a means of
putting these expenditure levels into perspective,
$125 million in annual
retail spending supports approximately 500,000 sq.
ft. of retail space, which is slightly
more than the size of Palmer Park Mall in
Northampton County (this presumes annual
sales performance of $250 per sq. ft., which is
considered a threshold sales level for
investment-grade tenants and properties). • Over
the next five years, increases in both the number of
households and household
incomes in Easton could be expected to generate an
additional $34 million in new
buying power. It is estimated that this added buying
power could support up to 135,000
square feet of retail space, irrespective of
location.
• As illustrated in Table 15, the City issued an
average of 17 building permits per year for
new residential dwelling units between 2000 and
2004, accounting for only 1% of all
new residential development in Northampton County.
(For the 10-year period between
1993 and 2002, the City issued an average of 24
permits per year for new housing starts.)
Notably, according to HUD, not a single permit for
new residential development was
issued in Easton in 2004. While the limited
availability of land has some effect, it is likely
that the City’s weakened economy and fiscal
conditions play an equally significant role in
limiting the amount of new housing. Economic
Development Plan for the Easton, PA CBD
12 Existing Conditions and Trends By comparison,
revitalization efforts in Bethlehem have sparked
momentum in the
residential sector, with almost 800 new dwelling
units permitted between 2000 and 2004
(155 permits per year). Greater population growth as
a result of ongoing suburbanization
in Northampton County has led to significantly
greater development activity, with more
than 1,700 permits issued on an annual basis in the
County since 2000. • According to property tax
information supplied by the City, the study area for
the
Economic Development Plan contains about 530 housing
units on approximately 20.8
acres of land, an average density of about 25 units
per acre. This is considered a fairly
dense development pattern for a city the size of
Easton. • The property tax information also
indicates that residential uses in the study area
have a
current assessed value of more than $10.5 million,
equating to a per-unit assessed value
of only $19,956. This limited valuation reflects the
number of multi-family units in the
downtown area and also suggests that Easton’s
municipal valuation is not at 100% of fair
market value. • An accurate and detailed inventory
of available properties, whether vacant or
undeveloped sites for new infill construction and/or
existing buildings that might
be appropriate for rehabilitation, is critical. As
noted in the Action Plan (Chapter
4.0), the use of financial incentives for specific
projects, particularly those involving
undercapitalized developers or property owners, will
help to “jumpstart” near-term
development opportunities. The objective should be
to create a “critical mass” of
revitalization projects beyond the incremental
activity represented by current projects
such as the Eastonian condominiums.
A critical barometer in evaluating demand for
various types of real estate is employment
growth. The following text and Tables 16 and 17 at
the end of the chapter highlight relevant
employment trends and forecasts for Northampton
County as provided by various sources,
including the Commonwealth of Pennsylvania
Department of Labor, the U.S. Census, and
Woods & Poole, Inc., a demographic forecasting
service. • Northampton County gained 11,500 new
jobs between 1995 and 2005 while Lehigh
County – the region’s dominant economic engine –
added more than 32,000 new jobs.
Not surprisingly, Northampton lost 6,400
Manufacturing jobs (consistent with national
trends), but gained 4,400 jobs in Wholesale/Retail
Trade. Gains were even greater in the
Services sector (7,400 jobs), reflecting the growth
of professional and business services,
education, and medical jobs. • Based on employment
forecasts prepared by Woods & Poole, Inc., a
demographic
forecasting service based in Washington, D.C.,
Northampton County is expected to add
about 12,500 new jobs in various sectors over the
next 10 years. The largest gains are
forecast in Services, Government, and Retail Trade.
One of the critical challenges that the City of
Easton faces with respect to economic
development is the attraction of high-quality,
well-paying jobs. Significant job creation
Economic Development Plan for the Easton, PA CBD
Existing Conditions and Trends 13
among such sectors as Retail Trade and Services –
characteristic of Northampton County’s
changing job market between 1990 and 2005 – do not
typically translate into high-paying
jobs. Thus the GEDP, City (and other municipal
officials from throughout the Lehigh
Valley), and appropriate private-sector business
groups such as the Lehigh Valley Economic
Development Corporation need to continue economic
development efforts that focus on
attracting high-quality jobs to the region and to
support public policies that reinforce the
respective roles of Easton (and Allentown and
Bethlehem) as the region’s employment and
economic centers.
Promoting Easton as a visitor destination is an
established strategy for the revitalization of the
CBD, as reflected in initiatives such as the
Delaware and Lehigh Canal State and National
Heritage Corridor and the Crayola Factory at Two
Rivers Landing. This strategy seeks to
capitalize on Easton’s location, historic and
natural assets, and easy access to the northwestern
New Jersey, New York City, and Philadelphia markets.
Easton benefits from key attractions that draw
visitors to the downtown area, including three
facilities that are especially important to the
economic vitality of the CBD: • State Theatre
Center for the Arts: Built in 1910 to replace the
1873-era
Northampton National Bank, this vaudeville theatre
was expanded in 1925; its
interior design includes elaborate frescoes and
gilding. Between 1930 and 1960, the
theatre evolved as a movie palace and, in later
years, hosted rock concerts during
the 1970s. By 1981, the facility was threatened with
demolition. A non-profit
organization was established to oversee a
renovation, which commenced in 1986 with
$1.2 million in funds raised by the organization.
The fundraising campaign raised
another $2.5 million in 1990 to undertake a
comprehensive artistic renovation.
Today, the theatre has more than 100 shows per year
and sells 120,000 tickets
annually, an increase over the 100,000 tickets sold
in 1999-2000. Plans are underway
to undertake additional improvements to the
theatre’s public and support spaces. • The Crayola
Factory: Opened in 1996, this 20,000 sq. ft.
facility is located at Two
Rivers Landing on Centre Square in downtown Easton.
The museum reports annual
visitation on the order of 330,000 to 351,000 over
the past six years. Attendance
peaks during July and August at 62,000 to 70,000 per
month, drops off substantially
during the fall to 13,000 to 19,000 per month, and
ramps up in the spring due to
school groups, ranging from 22,000 to 34,000 per
month between March and May.
• National Canal Museum and Heritage Area: This
museum showcases the industrial,
transportation, and cultural history of the Lehigh
Canal and Delaware River areas
of Pennsylvania. The facility, which contains a
10,000-volume library and a 50-seat
auditorium, provides lectures, tours, films and
educational programs. It also oversees
the hiking trails alongside the canal, and offers
boat rentals and canal boat rides. It
shares space with The Crayola Factory at Two Rivers
Landing. Estimated annual
attendance is reported at 325,000, although there is
reason to believe that the actual
figure is lower. Economic Development Plan for the
Easton, PA CBD
14 Existing Conditions and Trends Smaller
attractions include: • Northampton County
Historical & Genealogical Society: The society is a
tax-exempt
institution overseeing several facilities, including
the Illick Research Library, Nicholas
Children’s Museum, Kressler Memorial Gardens, and
the County Museum. There is
a 5,000-volume library. Attendance is estimated at
3,000 visitors per year. The former
Sigal’s department store on Northampton Street is
currently being renovated to
house the Historical and Genealogical Museum and
Northampton County archival
collection. • Lafayette College Art
Gallery/Williams Center for the Arts: Located on the
campus
of Lafayette College, this small, 1,000 sq. ft.
gallery hosts a variety of art exhibits,
including 19th and 20th Century American and British
portrait and historical
paintings, Abraham Lincoln and Marquis de Lafayette
memorabilia, and 20th
Century contemporary prints. Attendance is reported
at 8,600 per year.
Available information on Easton’s commercial
(office and retail) inventory is limited to
the city’s property tax database. As a rule, smaller
communities like Easton do not track
commercial market activity such as
leasing/absorption, rental rates, and available
inventory.
Notably, the available information does not contain
data on the indices critical to
understanding the overall health of the market,
including leasing activity/absorption, vacant
space, average rents, tenant characteristics,
operating expenses, etc. Therefore, the consultant
team used a number of other sources to assemble
property data, including interviews with
individual property owners and developers, the
Lehigh Valley EDC, Lehigh County Board
of Realtors, ESRI Business Information Systems, and
the U.S. Bureau of the Census. Key
findings are summarized below. • In 2005,
businesses in the City of Easton generated roughly
$1.1 billion in annual
sales volume across a range of categories, including
wholesale and retail trade,
manufacturing, construction, professional and
business services, finance and
insurance, lodging, arts and entertainment,
transportation, education, utilities and
others. These businesses employ approximately 8,250
persons. Wholesale and retail
trade comprises the lion’s share of this economic
activity – $539 million in annual
sales volume (48%). • The ESRI data was segmented
to better understand economic activity in downtown
Easton, defined as the CBD from Bushkill Creek to
the Lehigh River, and from
the Delaware River to 7th Street. In 2005,
businesses in the CBD generated roughly
$484.3 million in annual sales volume and employed
almost 4,700 workers. Public
administration (government) accounts for the largest
share of employment (1,500
jobs), with Wholesale/Retail Trade, Information, and
Health Care/Social Services
comprising the second and third largest activity
generators, respectively. • According to the
property tax database, the study area includes
approximately
1.5 million sq. ft. of land (34.5 acres) devoted to
commercial retail, service, or
professional uses, located on 17 commercial streets
and around Centre Square.
Economic Development Plan for the Easton, PA CBD
Existing Conditions and Trends 15
Another 4.1 acres support cultural and entertainment
uses, such as the State Theater
and Crayola Factory, and 8.65 acres of land are
devoted to government, warehousing
or vacant/underutilized parcels. • Because the
database provides only partial data on the amount of
commercial space
in the study area, an accurate analysis cannot be
undertaken at the present time. For
example, there is no precise way to gauge actual
productivity of retailers in downtown
Easton (sales per sq. ft.) as a means of
understanding which retail/merchandise
categories are healthy by benchmarking them against
industry standards. • Based on limited information
on rents provided by stakeholders and the property
tax database (generally ranging from $7 to $16 per
sq. ft.), annual sales performance
(using industry standard ratios of approximately 10%
of rent-to-sales) would
be approximately $70 to $160 per sq. ft. This would
suggest that many of the
downtown’s retailers are marginal and
undercapitalized, as investment-grade retail
typically performs in the range of $250 and higher
on a per square foot basis in
today’s retail economy. • Sales performance and
degree of capitalization are two measures considered
critical in
identifying future opportunities for retail
development. More detailed testing will be
required as specific revitalization initiatives move
forward.
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