Oxford faces unique challenges in its efforts to fill empty storefronts, city officials said.
Alan Kyger, Oxford's director of economic development, identified several issues compounded by difficult economic conditions: prohibitive upfront costs for small businesses starting up, overly cautious banks not giving out loans and demographic reports portraying Oxford as small, with high unemployment and low income. All these aspects eventually reach the desks - and trashcans - of decision-makers at major franchises.
Kyger said much of the challenge of the moment is a result of recent construction in the uptown area.
"We've had a lot of rebuilding," Kyger said. "We had empty storefronts prior to this regrowth, but they were older, and lacked electricity and plumbing to handle some businesses. Now, there is a new but unfinished structure."
While national franchises have the finances to finish out the interiors, the upfront costs may be "a stumbling block" for mom and pop shops, Kyger said.
Mayor Prue Dana said while national chains have the means to move into Oxford, they may not have the desire.
"The bottom line is that we don't have (commercial) traffic like West Chester or Mason, so when big chains look at Oxford … in reality, they don't know how much people here really go uptown," Dana said. "And they have the whole student body, 16,000 students, at their doorstep."
Kyger said census reports of unemployment and income, which reflect the presence of the Miami University student body by making the former uncharacteristically high and the latter uncharacteristically low, are the basis for franchises' decisions about where to put chains.
"Somehow, we're going to have to figure out a way to use the franchises that have come here and done well like Starbucks and BW3's to recruit other franchises," Kyger said.
Kyger and Dana also said they want to help local businesses get off the ground. The city has an approximately $625,000 "revolving loan fund," according to Kyger. Loans through the fund, which offer discounted interest, are meant to make up the difference between what businesses need and what banks are willing to loan. Kyger said the fund has been used by Kofenya, Alexander House and other local businesses.
Dana said she wants to see the fund be used more, especially at a time when development of small business has slowed.
"We certainly need to increase people's knowledge of it so that people know those funds are there for assistance," Dana said. "Times are hard and we're going to have to deal with that."
In addition to the city's revolving loan fund, businesses can also turn to the federal government for help, Kyger said. The Small Business Administration (SBA) loans are made available through banks, which are guaranteed 90 percent of the loan by the government. According to Kyger, the SBA program has received money from the stimulus package and has been able to "drastically reduce fees" and cut red tape.
Oxford City Council also took the step in March to look into Tax Increment Financing (TIF) for the purpose of developing business, Dana said. The question of whether to explore the tax incentive program has been debated by council for several years, and Dana said she felt now was the right time to move ahead with it.
"It gives incentives to people for developing here," Dana said. "It's our hope (that they will)."
Dana said bringing business to Oxford will take a combined effort from the Chamber of Commerce, city council and the economic development office, but most importantly, "it just takes somebody who is interested in doing business in Oxford."
