2014 DOWNTOWN DES MOINES EXECUTIVE CALL REPORT
DOWNTOWN COMMUNITY ALLIANCE
EXECUTIVE CALL PROGRAM OVERIEW
Since 2000, the Downtown Community Alliance, in collaboration with local businesses, has conducted the annual Executive Call Survey in order to obtain a better understanding of the strengths and weaknesses of Downtown Des Moines, in addition to any potential opportunities or threats impacting the community. The Downtown Community Alliance establishes connections with top-level executives, business owners, and managers. Each business is contacted both by mailing and by phone in order to schedule an interview with a member of the Downtown Community Alliance staff. Each interview is performed in person at the business premises and functions as a confidential discussion covering recent or planned changes for the business, the downtown workforce, technology affecting the business, and the Downtown community and its services. The data from each survey is recorded using Synchronist, aggregated and disseminated to the public through this report. The 2014 Executive Call program incorporated responses from 53 Downtown Des Moines businesses. We would like to thank each participating business for their assistance in the completion of this year’s Executive Call Program. The information gathered will be used to obtain a better understanding of the workings of Downtown Des Moines in addition to providing the foundation for informed decision-making. If your business would like to participate in the 2015 Executive Call Program, please contact the Downtown Community Alliance at 515-286-4996. Data collection and data processing is performed using the Synchronist Business Information System. Information about Synchronist in addition to examples of the forms used for this survey can be found at www.synchronist.com. MidAmerican Energy sponsors the Executive Call Program.
DOWNTOWN DES MOINES 2014 EXECUTIVE CALL REPORT
DOWNTOWN DES MOINES
Downtown Des Moines is comprised of the area contained within census tracts 27, 51 and portions of 52. Downtown Des Moines is located in the center of Polk County, approximately the geographic center of Iowa. This location makes it an ideal location for both State-level and County-level. 2,088 Establishments 67,813 Employees 9,415 Residents 20-24 – 10.0% 25-34 – 27.9% 35-44 – 13.3% 45-54 – 12.0% 55-64 – 11.0% 63.4% White 23.1% Black 13.5% Other *Based on 2014 estimates.
DOWNTOWN DES MOINES 2014 EXECUTIVE CALL REPORT
BUSINESS SELECTIONS Business Sector Representation Consumer Goods Retail Business Servces Financial Non-Profit Construction Healthcare Entertainment Industrial Eating & Drinking Establishments
0
2
4
6
8
10
12
14
16
18
This year, businesses were chosen based on five criteria: business sector, location, employment, year established, and ones who haven’t been visited in the last two years. We believe that no business is too small or too focused to provide valuable information.
210 25%
businesses were invited to participate in the program this year.
of the business participated for a total of 53.
DOWNTOWN DES MOINES 2014 EXECUTIVE CALL REPORT
BUSINESS DYNAMICS Total Sales 2%
50%
4%
No Answer Decreasing Stable
44%
Increasing
This year was a year of stability when it came to total sales. Just 50 percent of the businesses that were visited reported an increase in sales. This is down from 65 percent last year. There was a sizable growth in businesses experiencing a stable year of sales. Up from 28 percent in 2013, 44 percent of businesses this year saw no growth or decline. A smaller number of businesses also reported a decline in sales, just 2 percent, down from 6 percent in 2013. No one really expressed concern and just hoped for a better year next year.
“It’s just been a slow year.” Markets 8%
17%
Local Regional
33%
National
42%
International
Des Moines businesses stay diversified when it comes to the markets they serve. 42 percent of the executives said that their business or company directly serves the Des Moines area. These businesses were mostly the restaurants, consumer services, retail, and non-profits. 33 percent of businesses served a larger area and are doing business throughout the state. Business services, health care entities, and industrial businesses fit in this category. Almost one fifth of businesses compete on the national stage and around 8 percent are involved in international business.
“I’d like to hire more people.” Life Cycle 4% Declining
52%
Maturing 42%
Emerging Growing
2%
Des Moines is growing and people know it. 52 percent of business executives viewed their business as “still growing”. The word “growth” was also used 14 times to describe strengths of doing business downtown. Though business executives described their business as growing, very few expressed interested in expanding or moving their location. “We’re maturing,” was the answer from 42 percent. Des Moines has a very stable market with 94 percent of its business either maturing or still growing. Just 2 percent felt if they were on the decline.
DOWNTOWN DES MOINES 2014 EXECUTIVE CALL REPORT
WORKFORCE Attribute Availability Quality Stability Productivity
Rating 4.92 5.55 5.26 5.70
Employer Perception of the Downtown Workforce
Based on a scale from 1 to 7, 1 being low and 7 being high.
The downtown workforce is on the rise. Availability: The availability of the downtown workforce was up slightly from last year. It received an above average rating of 4.92. The score varied from industry to industry. Businesses that needed more of a skilled labor, such as marketing, technical, and good management skills, found it hard to find employees. Industries such as retail, financial institutions and health care had an easier time finding employees. Quality: Satisfaction with the quality of the downtown workforce jumped to 5.55 from 4.71 last year. Many employers are very satisfied with the quality of their workforce but there is always room for improvement. 54 percent of employers are investing in employee training. About half of those are increasing their investment in employee training. Stability: The stability rating stayed constant from 2013 to 2014 at 5.26. The downtown workforce, for the most part, is staying put and not leaving. There is a sense of jobs moving to the suburbs as local business owners expressed concern of downtown retail moving west. Productivity: Productivity received the highest marks this year. A majority of employers view their workforce as very productive. Employers who have worked outside of the state said they view the Des Moines workforce as more productive and eager to work than in other parts of the county.
54% of employers invested in employee training.
DOWNTOWN DES MOINES 2014 EXECUTIVE CALL REPORT
TECHNOLOGY Technology is always changing and always growing. This is both a good and bad thing for businesses. With the rise of social media, businesses are able to communicate with a large pool of potential customers at little to no cost. A majority of businesses in the downtown are on social media platforms like Facebook and Twitter. Inventions like the Square make it able for retailers to go portable with their business and use their phone or iPad to conduct transactions. This has made it possible for more downtown retailers to participate in events like the Farmer’s Market. Business executives are very positive about the technology infrastructure downtown. 100 percent believed that it was adequate for their growth plan. Internet access and internet speed both received high ratings, 5.02 and 5.1 respectively.
THE MOOD Younkers: Downtown Des Moines was devastated to hear about the fire that destroyed the Younkers building. The building was going under a $35 million renovation to bring new housing units and 40,000 square feet of retail space to the corner of 7th & Walnut. Business owners in the surrounding area are unhappy by the slow clean up of the area. With street and sidewalk closures, some have seen a dip in activity. Many want to see the clean up and development of the area pick up pace. Downtown Grocer: Downtown Des Moines is lacking a major grocery store and the residents know it. Downtown grocery stores are popping up in cities all over the country and Des Moines is ready for one. Resident’s closest options are Dahl’s on Ingersoll, the Hy-Vee on Fleur, and the Gateway Market out on Sherman Hill. In February, plans were unveiled to build to 35,000 square foot Hy-Vee on Court Avenue. The grocery store would also include a bakery, bank, restaurant, housing above the store, and a parking garage. This made employers excited, as they are tired of driving to the suburbs to buy groceries after work. So far there hasn’t been any movement on the Court Ave. and SW 4th St. location.
DOWNTOWN DES MOINES 2014 EXECUTIVE CALL REPORT
COMMUNITY CHARACTERISTICS Strenghts Growing Community Feeling Apperance Central Location Events Quality of Life Ease of Access
Population 0
2
4
6
8
10
12
14
“DES MOINES IS THE GEM OF THE MIDWEST.” GROWTH: Des Moines is growing and a lot of people are excited about it. Many see the growth in population as a larger consumer base or employee base. Growth was also used to describe the physical aspects of the city. The Civic Center, redevelopment of the historic buildings downtown, and the increasing number of downtown residential buildings really got people talking.
COMMUNITY FEELING: “Des Moines isn’t like any other city. People here care.” There is a sense of community involvement and support here in Des Moines. Many executives said that their employees feel welcome and safe downtown. Local businesses support each other and the Partnership and Downtown Community Alliance were named as fantastic supporters of the sense of community.
APPERANCE: Executives only had good things to say about Operation Downtown. “They are so polite and do a fantastic job.” The Gateway Park, the Principal Riverwalk, and the East Village all brought comments like, “It doesn’t even feel like I’m working downtown” and “They attract me downtown to hang out”.
EVENTS: Who doesn’t love the Farmer’s Market? Many see this as a big plus for the city of Des Moines as over 20,000 people visit the market every Saturday. It was recently ranked as the 2nd best famer’s market in America. 80/35 and the Des Moines Art Festival were also listed as strengths of doing business downtown. It brings in large crowds and businesses see an increase in foot traffic. The only negative comment about the events was the closing of key streets.
DOWNTOWN DES MOINES 2014 EXECUTIVE CALL REPORT
COMMUNITY CHARACTERISTICS Weaknesses Parking Lacking Downtown Retail Small Businesses Hurting Public Transportation Downtown Grocer
Taxes Evening Activity Lack of Diversity 0
4
8
12
16
20
“DES MOINES IS A DAY CITY. WHERE’S THE NIGHT LIFE?” PARKING: Over 1/3 of executives said parking was an issue. Parking includes three aspects: cost, availability, and parking control. Many worry about the cost of parking and how it deters customers from shopping downtown when parking outside of the downtown area is free. Executives also stated that their customers are having a hard time finding parking. Finally, half of the businesses that are dissatisfied with parking comment on how parking patrol officers are over zealous and in a sense are harassing customers.
LACK OF DOWNTOWN RETAIL: Over the years we have seen a shift of business to the suburbs. Small businesses see this and how it is impacting the other downtown businesses. Many hope to one day see a return of a few chain retail stores to the area. Talk about a downtown grocery store also got executive excited. “We desperately need one.”
SMALL BUSINESSES HURTING: Executives expressed concern regarding small businesses and how they’re hurting. Some suggested skywalk businesses hurt street businesses and vice versa. But a majority talked about how the City of Des Moines and the Greater Des Moines Partnership work harder to attract new business and forget about the already established small businesses. Many would like to see a better relationship there.
EVENING ACTIVITIES: Many viewed Des Moines as “dead” after the hour of 5 p.m. The Skywalk is empty, businesses downtown close up shop and it seems as if Court Avenue is the only place alive in the evening. There are mixed feelings about the bar & restaurant district but most view it as the city’s pulse after dark.
DOWNTOWN DES MOINES 2014 EXECUTIVE CALL REPORT
In order to asses the overall quality of public services in Downtown Des Moines, business executives were asked to provide a scaled score for 18 service categories. Feedback obtained from businesses suggested general satisfaction with the quality of downtown services. Emergency services such as police, fire, and ambulance protection once again received high marks. Executives believed they had good response times, excellent coverage of the area, and were easy to work with. Pubic transportation received a lower score and business executives expressed some concerns. Many believe the system is inadequate and needs to be seriously looked at. Lack of stops, irregular bus times, and non-extensive routes were many of the concerns. Executives were quick to praise Des Moines for having a public transportation service but wish it was improved.
COMMUNITY SERVICES Utility Police Protection Fire Protection Ambulance Protection Heath care Services Child Care Public Transit Traffic Control Local Roads Highways Propery Tax Assesment Zoning Changes Regulatory Enforcement Airline Services Trucking Schools (k-12) Tech Colleges Community Colleges Colleges & Universities
Satisfaction 6.12 6.32 6.31 6.00 6.20 4.80 5.09 5.38 5.29 4.19 5.07 5.28 4.50 5.75 6.50 6.25 6.25 6.20
Based on a scale from 1 to 7, 1 being low and 7 being high.
The Des Moines International Airport also received lower ratings. Des Moines is growing and expanding. The airport saw a 10.2 percent increase in traffic from 2013 to 2014. Business executives wish there were more direct flights to and from Des Moines.
UTILITY SERVICES Utility Water Sewage Natural Gas Electric Telecom Cellular Internet Access Internet Speed
Satisfaction 5.13 5.04 5.54 5.55 5.20 5.53 5.02 5.10
Overall, people are satisfied with their utilities. Satisfaction averaged anywhere between 5.02 and 5.55. Internet service and speed were ranked the lowest of the utilities. Business executives explained that the internet service wasn’t the most reliable. Consumption of these utilities remained mostly stable. A few businesses are consuming less as they “go green”.
Based on a scale from 1 to 7, 1 being low and 7 being high.
DOWNTOWN DES MOINES 2014 EXECUTIVE CALL REPORT
Downtown Community Alliance 601 Locust Street, Suite 700 Des Moines, IA 50309 515-286-4950 (p) 515-243-6684 (f) Glenn Lyons President and CEO 515-286-4932
[email protected] Research Conducted By: Austin Jacobs Tim Leach Report Prepared By: Austin Jacobs
Tim Leach Director of Economic Development 515-286-4944
[email protected] Austin Jacobs 2014 Executive Call Coordinator
[email protected] DOWNTOWN DES MOINES 2014 EXECUTIVE CALL REPORT