Friday, June 12, 2015

DOES THE CITY TRY TO ATTRACT ENTERTAINMENT-ORIENTED BUSINESSES? WHAT IS THE STATUS OF THE MCHENRY DOWNTOWN THEATER AND PRELUDE TO THE SUMMER EVENT SEASON…

Yes, attracting and providing entertainment options for residents and visitors alike is a very important aspect to a holistic economic development program.  The primary and most obvious reason is people who choose to live in the City of McHenry want to have options for entertainment within the community which they live.  It is also part of the overall quality of life equation.  Entertainment is also a useful tool to attract people to a community thereby providing a secondary market, i.e. visitors and tourists.  Entertainment-oriented businesses are destinations.  They enhance the quality of life for residents but also invite people to the City of McHenry, who while seeking entertainment within the City can also attend a special event or visit other stores in the City.  It’s another avenue for non-entertainment businesses to gain exposure to new customers.  Special events are an excellent opportunity for existing businesses to capitalize on this secondary market.  Often during special events businesses may remain open for additional hours or coordinate a special promotion or sale in conjunction with the event. 

What are some of the challenges associated with attracting entertainment-oriented businesses?

Businesses devoted exclusively to providing some form of entertainment as their primary business model are more challenging to attract to a community for a few key reasons.  They require more population density (large number of people residing in a specific geographic area) and often seek locations in close proximity to highway or interstate access because they are destination-oriented businesses.  They want to maximize their exposure and opportunity to be successful and ensure people can easily find and access them.  You may be familiar with Whirlyball, Medieval Times, K1 Speed, Dave & Buster's however there are a very limited number of these specific businesses in the entire Chicagoland region. 

One of the biggest challenges McHenry County faces is lack of interstate access which significantly limits the potential for larger destination and  more specialized businesses, including entertainment-driven business to locate within the County and be successful.  Businesses such as Brunswick Zone or Chuck E. Cheese's have similar site location requirements and some of these businesses do have locations in McHenry County or in close proximity but often will not seek additional sites because their customer base or market trade area is very large due to the nature of the business. People will drive a longer distance to patronize these types of businesses.  Additionally, entertainment businesses are more sensitive to a turbulent economy.  When disposable income is limited and consumer spending is down it’s these types of businesses which often are more financially impacted.

The Retail Experience

Due to the dynamic nature of the economy and demographic and socioeconomic trends entertainment businesses are often combined with a retail, service, restaurant and/or hospitality component.  Having multi-dimensional uses within one building or center provides a greater opportunity for these businesses and developments with these types of businesses to be successful and allows customers to do many things at one location.   It can also hedge some of the risk for businesses which are more susceptible to struggle in a tighter economy by providing diversification with complimentary businesses. For example you may have a bowling alley paired with a restaurant or other form of entertainment.  Retailers do this as well in order to create a "retail experience".   The end goal is to attract people to a location and keep them there for as long as possible so they spend more money than they might originally have intended if these other "complimentary" businesses were not as convenient to patronize.  They do this by creating an experience/environment which is conducive to not just moms and dads but grandmas and grandpas, kids/grandchildren etc. 

 
What is the Status of the McHenry Downtown Theater?

A question I am asked quite frequently is:  What is the status of the McHenry Downtown Theater and will the theater open again?  The theater building was foreclosed on by the lienholder and a sheriff’s auction was held approximately one month ago.  The purpose of the sheriff’s auction was to seek bids from parties/investors interested in purchasing the theater building.  The auction was held however the existing lienholder was the only bidder on the building.  The lienholder is in the process of obtaining a legal deed to the property through a court proceeding which follows a sheriff’s auction.  After obtaining legal ownership of the building, it’s the intent of the lienholder to market the property to prospective buyers.   The City has maintained contact with the lienholder and has fielded calls from people interested in acquiring and reopening the theater.

A large challenge associated with reopening the McHenry Downtown Theater however is upgrading to digital equipment, which is an expense in excess of $130,000.  As Director of Economic Development I work to facilitate relationships and connections with the end goal, in this particular instance, being to reopen the theater.  It is paramount to the City’s downtown revitalization efforts because the theater is a destination which brings people to the downtown and provides both an entertainment option but also an opportunity to bring customers to the downtown to patronize other businesses.  The City will continue to work with the lienholder in an effort reopen the theater.  As the old adage goes: “Where there is a will there is a way.”  There is definitely a will to reopen the downtown theater and as Director of Economic Development it is my job to find a way to do so!    

 
Are there special events or other entertainment options available?

Yes, the City is currently constructing an 18,200 square-foot recreation center immediately west of the Municipal Center and has a master plan to construct an aquatic center and gymnasium in the future when funding is obtained.  The recreation center is scheduled to open Spring of 2016.  The City also just completed a major renovation to Fort McHenry in Whispering Oaks Park as well as the tennis courts at Knox Park.
 
Additionally, there are many other community events including:  Green Street Cruise Night (Every Monday Evening), A Day at Petersen Farm, June 28 at Historic Petersen Farm on McCullom Lake Road and Movies in the Park, which will be occurring throughout the summer months.  Many of the events are free and provide an opportunity for family-oriented entertainment.  The following link to the City’s newsletter provides a glimpse.
 
 
Every Thursday evening there's a band concert/farmers market held at Veterans Memorial Park and the following link provides a schedule for all summer band concerts. 
 
 

The McHenry Area Chamber of Commerce, also hosts numerous family-oriented events and the countdown to Fiesta Days 2015 days has begun. 
 
Please visit the chamber website http://mchenrychamber.com/ to learn more.    Additionally, the McHenry Public Library District also offers numerous programs and events throughout the year.  Check these out at http://mchenrylibrary.org/.  
 
The McHenry Rotary Club will host their annual Blues, Brews and BBQ festival at the end of July/early August at Petersen Park.  For more information on this event visit their website:  
 
http://www.mchenryrotarybluesbrewsandbbqs.com/.
 
 Entertainment, Special Events and Tourism

Providing entertainment options, having special events and opportunities for tourism are important components to the economic well-being of the City.  They enhance quality of life for residents and provide opportunities for businesses to engage in cross-promotion and utilize other local businesses to assist in these efforts.  The City is actively recruiting all types of businesses, encouraging expansion and working on retaining existing businesses as well as promoting tourism and hosting and partnering with other groups for different types of special events, programs and festivals geared towards families. 
 
I believe it is incumbent upon all of us as members of a community, residents, businesses owners, the City, other stakeholder groups and organizations, to support local businesses, attend, volunteer and promote festivals and special events and support charitable organizations.  These are all vital pieces to fostering a vibrant community, promoting business, quality of life and being civic-minded. 
 
 
Economic development is a community-wide effort and at the end of the day the entire community and everyone who is part of it benefits!!! 
 

Please continue to provide feedback, submit questions and comments!!!!

 
Coming in future blog posts: 

  • What factors do non-retail businesses consider when thinking about relocating?
  • Best of the Fox Award Winners…
  • International Council of Shopping Centers Conference 2015...
  • How do brick and mortar businesses remain competitive with on-line businesses?
  • Chicago Metro Metal Consortium..
  • What are Class A, B and C spaces?
  • Franchising?  What is it?  What companies offer it and what challenges are associated with attracting a retailer which operates exclusively using franchising?
  • Future trends in economic development:  “market segmentation;“ “pop-up” stores; “placemaking/third places”
 
Douglas P. Martin
Director of Economic Development
City of McHenry
333 S Green Street
McHenry, IL 60050
815.363.2110 (d)
815.363.2173 (f)
815.790.4752 (c)
@McHenryIL

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