Economic Development Pandemic Recovery Plan - Village of Schaumburg
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Economic Development Pandemic Recovery Plan
Mission
To provide resources to businesses, development communities, and residents with the purposes of
helping the local economy open up safely and recover from the Pandemic.
Purpose
Schaumburg’s economy has been significantly impacted by the Pandemic and Governor Pritzker’s
Executive Order 2020-10 on March 20th regarding Stay at Home; Social Distancing Requirements;
and Essential Businesses and Operations. The Economic Development Pandemic Recovery Plan will
serve as a guiding document for an economic development strategy that will support existing
businesses to cope and survive the Pandemic, assist residents who have lost their jobs, attract new
businesses, and enhance the economic vitality of the community.
Business Resources
A variety of programs and resources have been implemented to assist businesses during the
Pandemic. The Federal Government offered the Economic Injury Disaster Loans, Paycheck
Protection Program, and other resources through the CARES Act. The State of Illinois rolled out the
Illinois Small Business Emergency Loan Fund, Hospitality Emergency Grant Program and the State
Treasurer’s Small Business COVID-19 Relief Program. At a local level, Cook County pushed out the
Community Recovery Initiative. The Village of Schaumburg approved a new Small Business
Forgivable Loan Program and is looking to expand this opportunity to help businesses cope and
survive. Next Level Northwest is also available for eligible businesses to access free coaching and
mentoring as businesses adapt to the changing environment. Some of the other business resources
and grant programs available are Business for All, Local Initiatives Support Corporation, and Reopen
Main Street. Village staff will continue to monitor available programs to support our businesses and
opportunities from the Economic Development Administration, U.S. Small Business Administration,
and others.
Commercial Sector
Schaumburg’s 30 hotels, 200 restaurants and 10.5 million square feet of retail have been forced to
shut down or modify their operations to curbside or delivery options. Schaumburg’s retail sector has
typically been the healthiest sector, as well as a key priority due to over half of the village’s services
being funded directly by sales taxes. Although the “retail apocalypse” concept has affected
Schaumburg, the community has historically enjoyed a relatively low vacancy rate. The commercial
vacancy rate is at 7.4%. Some of the larger retailers that have closed over the past few years include
1
Economic Development Pandemic Recovery Plan
Carson’s, Carson’s Furniture, Toys R Us, Babies R Us, REI, Golf Smith, At Home, Macy’s Furniture and
Art Van Furniture. Some of these vacancies have since been filled, with other promising prospects
for the remaining vacancies possible. Commercial users space needs will continue to change due to
the Pandemic and consumers altered behaviors.
The International Council of Shopping Centers (ICSC) reports that April U.S. retail sales minus auto
and gas dropped 9.3 percent year over year and 14.3 percent from March 2020, according to an
advance estimate by the U.S. Census Bureau. Non-store sales, food-and-beverage-store sales and
building supply/garden-store sales each grew year over year, but only non-store sales increased
from March 2020 to April 2020. Sales at traditional and discount department stores, a subset of the
general merchandise category, fell 47 percent year over year in April. Clothing stores fared worst
among U.S. store categories, as sales fell 89.3 percent year over year and 78.8 percent from March.
The following table from ICSC shows the dramatic impact of the Pandemic on the retail sector:
Several strategies will be required to make consumers feel safe and secure to visit and frequent
these establishments when they reopen and how to adapt post-Pandemic. Here are a few strategies
that the Economic Development Department staff will focus on to help our key commercial
businesses:
1. Village Promotion
Schaumburg will need to build upon its reputation as a safe, clean and well-managed village and
2
Economic Development Pandemic Recovery Plan
promote opportunities for further investment. The Village of Schaumburg has increased its
promotions of local businesses via social media. Facebook posts highlighting small businesses
that are open for curbside pick-up or restaurants offering carry out and delivery have been
shared since mid-April. A restaurant map depicting open restaurants with links has been shared
via Facebook and on the village’s website. Additional marketing with our partners like the
Schaumburg Business Association, Meet Chicago Northwest and Schaumburg Township will help
boost visibility. Some potential initiatives would include:
Promote Schaumburg as a safe place to live, work, shop and play
Work with hoteliers to highlight their safety efforts and affordability to encourage both
corporate and leisure travel business
Develop Shop Schaumburg Campaign to promote and boost small business
Special Cracker Barrel and Progress Report edition highlighting all retailers, restaurants
and hotels
‘Dailly Sighting’ with the Mayor promoting different establishments
Work with businesses to showcase the steps they’ve taken to keep shoppers safe
2. Omni-Channel and Technology
As consumers are making more purchases via the internet, commercial businesses will need a
strong website and delivery system to engage their customers. Organizations like the Small
Business Development Center, Schaumburg Business Association and others provide webinars
and sessions to assist businesses with their website and marketing. Technology will continue to
evolve for commercial businesses to entice shoppers. Another way Schaumburg can help
businesses with their multi-channel approach to sales is allowing for easy pickup. Zoning
regulations have already been modified to allow for curbside pickup such as Target and several
restaurants. Additional business signage will be needed to make it even easier for shoppers to
get their goods. Some potential strategies that the village could work with businesses on
include:
Interactive directory of Schaumburg businesses
Working with our tech companies to help create apps for retailers and shoppers
Enhanced signage for businesses to allow for curbside pickup and modifying the Sign
Code to permit more temporary signage
3. Adaptive Use of Space
Unfortunately not all commercial businesses will reopen. Schaumburg will need to think long-
term about how to work with property owners to best plan for future needs and preferences of
shoppers and diners. A few things to consider include:
Modifying land uses within the commercial zoning districts to adapt to future consumer
and market demands
Redesign and utilize large parking lots for easier pickup and future development
Plan for the store of the future with technology and layout
3
Economic Development Pandemic Recovery Plan Assess opportunities for restaurants to expand into adjacent spaces to accommodate
spacing and safety requirements
4. Safely Reopening to Customers
It is important that businesses follow appropriate guidelines to reopen to the public to ensure
employee and customer safety. By following the proper health protocols from CDC, OSHA, IDPH
and others, it will provide consumers with confidence of coming back to help revitalize the
economy. A few things to consider include:
Continue to work with our restaurants to address protocols for serving customers
including contactless payments, single use condiments, disposable menus, table spacing,
outdoor dining and other sanitization actions as highlighted by the Illinois Restaurant
Association
Share reopening best practices for commercial businesses by ICSC and address technical
systems and facilities to accommodate modified occupancies for shoppers
Promote designated hours for seniors and at-risk populations to enter stores
Plan for the hotel reopening in phases and changes required to restore the hotel and
convention industry as laid out by Streetsense and other hospitality resources
Office Sector
The office sector has been one of the biggest challenges for the Village of Schaumburg, as well as
the entire Chicago region, before the Pandemic. There is currently around 3 million square feet of
available space on the market, which represents a vacancy rate of 22% for the total 13.4 million
square feet of office space. Schaumburg’s office sector has been significantly impacted by the
Pandemic and inability of ‘non-essential business’ to operate. Owners, lenders, property managers,
brokers, businesses, employees and the Village of Schaumburg will all need to work together to
help reopen safely. With a vacancy rate of over 22%, there is a risk that additional space will become
available and make the operation of these office buildings even more challenging. Here are a few
strategies that the Economic Development Department staff will focus on to help our key office
properties:
1. Office Promotion
The Village of Schaumburg has a variety of office buildings in various classes and styles from one
story condo units to high rise offices. The diversity of office can be a positive as businesses
rethink their floor plans and workforce needs post Pandemic. A cooperative marketing approach
is required to strategically think how to keep businesses operational and attract new office
tenants. Some potential initiatives would include:
Advertising of safe office spaces with social distance protocols
Highlighting convenience of locating within Woodfield Regional Center with safe
amenities nearby
4
Economic Development Pandemic Recovery Plan Promoting ample parking and wide open spaces
Showcasing ability to design your own office building and space with technology in 90
North Schaumburg with TUF Partners, their office broker Colliers and other consultants
2. Leveraging Technology
As employees come back to the office environment, building owners will need to utilize
technology to reinforce the safety measures in place to make employees comfortable.
Schaumburg is home to some of the greatest technology companies including Comcast, Verizon,
and Motorola. We can leverage their technologies and work environments to showcase to other
businesses. Technology will continue to evolve for the office environment. Some potential
strategies that the village could work with businesses on include:
Asynchronous collaboration allowing gatherings by video
Bonding via Zoom
3. Modifying the Work Environment
Office buildings will need to create a comprehensive strategy to safeguard the health of
employees and tenants, strengthen the security and productivity of property operations, and
provide tenants with realistic recommendations for their workspace. A few things to consider
include:
Cafeterias and cashless systems
Flexible Meeting Space
Upgrading building systems
Elevator safety and sizing
Lobby space and entryway modifications for physical distancing
Industrial Sector
The industrial sector for the Village of Schaumburg has been relatively steady. There is currently
around 550,000 square feet of available space on the market, which represents a vacancy rate of 5%
for the total 10.8 million square feet of industrial space. Schaumburg’s industrial sector has not
been significantly impacted by the Pandemic as some of our manufactures were deemed as
‘essential businesses’ and were permitted to continue to operate. Here are a few strategies that the
Economic Development Department staff will focus on to help our industrial businesses continue to
operate and succeed:
1. Monitor Supply Chain and Reshoring Initiatives
Many of Schaumburg’s companies are global in nature and rely upon supply chains that are vast.
The pandemic has highlighted the challenges of these large supply chains. Re-shoring has been
trending with the challenges in the political environment, transportation costs, rising costs with
international wages and tariffs. Illinois and Schaumburg are ripe for additional industrial
5
Economic Development Pandemic Recovery Planinvestment with O’Hare Airport and the excellent transportation system. Some potential
initiatives would include:
Assessing industries where production is closer to consumption to a local-to-local
approach that allows businesses to better serve their customers
Conduct a supplier symposium so Schaumburg businesses can highlight their products for
other manufacturers to see if their products/services could be utilized
Partner with the Illinois Manufacturers’ Association and Technology & Manufacturing
Association to advocate for additional industrial investment as part of a reshoring
initiative
2. Leveraging Technology
Manufacturers have been at the forefront of technology with their use of robots, artificial
intelligence, industrial internet of things and other measures to automate systems. Schaumburg
is home to the world’s leaders in precision machine manufacturers. Some potential strategies
that the village could work with businesses on include:
Promoting Schaumburg manufacturers and their products ability to increase automation
and improve operational efficiencies
Work with IMEC to help manufacturers to incorporate technology in their processes or
products to sustain their competitive advantage
Work closely with Harper College, Golden Corridor for Advanced Manufacturing
Partnership, District 211 and other organizations to address virtual training for the future
workforce and prepare them for Schaumburg’s manufacturers needs
3. Education and Marketing to Industrial Businesses
The Village, Golden Corridor for Advanced Manufacturing Partnership and the Schaumburg
Business Association have all worked to reach out to our industrial businesses to provide
resources and value to our manufacturers. It is especially important to continue to have a
dialogue and provide information to our industrial businesses as they look to adapt post-
pandemic. A few things to consider include:
Expanding the Spotlight on Spectrum to include all industrial/business parks
Add a section to Spotlight on Spectrum title “In search of” for local businesses to place an
item or service they are looking for
Create a directory of businesses in the industrial parks that can be used by Schaumburg
companies to keep business sourcing local
Promote development opportunities that fit with the existing industry clusters we have
in Schaumburg
Workforce
More than 1 million people in Illinois have filed for unemployment during the Pandemic. 1099
6
Economic Development Pandemic Recovery Planworkers who have lost employment due to the Pandemic have just been given the ability to apply
for unemployment. This will cause a surge in the unemployment rate.
Unemployment Rate
Locations Feb. 2020 March 2020 April 2020
Schaumburg 2.4% 3.6% 16.3%
Illinois 3.5% 4.4% 16.4%
United States 3.8% 4.5% 14.7%
Schaumburg’s resident labor force is 43,385 with 1,567 residents unemployed according to the
Illinois Department of Employment Security (IDES) March data. May data will be released at the end
of June and will most likely continue to show record numbers of unemployment based on the filings
by 1099 workers. According to IDES “Where Worker’s Work” 2019 report, Schaumburg’s 5,000
businesses employ 83,752 employees in the following industries by North American Industrial
Classification System (NAICS) code:
Industries (NAICS) Employees % of All
Retail Trade (44-45) 11,310 13.5%
Professional, Scientific & Tech. Services (54) 11,234 13.4%
Accommodations & Food Services (72) 10,635 12.7%
Admin. & Sup. & Waste Mgmt. & Remed. Services (56) 10,300 12.3%
Wholesale Trade (42) 5,934 7.1%
Health Care & Social Assistance (62) 5,330 6.4%
Finance & Insurance (52) 4,737 5.7%
Mgmt. of Companies & Enterprises (55) 4,372 5.2%
Manufacturing (31-33) 3,322 4.0%
Other Services (81) 2,795 3.3%
Transportation & Warehousing (48-49) 2,787 3.3%
Construction (23) 2,704 3.2%
7
Economic Development Pandemic Recovery PlanInformation (51) 1,729 2.0%
Real Estate & Rental & Leasing (53) 1,252 1.5%
Several of Schaumburg’s leading industries have been significantly impacted by the Pandemic such
as retail, hospitality and other ‘non-essential’ businesses. It will be critical for Schaumburg to work
closely with our resource partners to redeploy people into the businesses and get jobs. The State of
Illinois has created a website dedicated to assisting employers and job seekers. As of May 15 th, there
were 718 jobs posted on IllinoisJobLink.com. Illinois workNet will also be a valuable resource as
individuals will get assistance on achieving their employment goals. Roosevelt University, Harper
College and our other educational partners will also play a key role as people will need to retrain
and learn new skills as our economy adapts to a new normal.
Business Retention and Expansion Surveys and Priorities
The Village and the Schaumburg Business Association have typically completed Business Retention
and Expansion (BRE) Surveys in person with a C-Level Executive to get a baseline picture of the
business environment in Schaumburg and identify ways we can help them grow. Economic
Development sent out a COVID-19 Business and Human Impact Survey in April to gauge the business
environment. Below are highlights of the survey and how Schaumburg compares to other regions
that completed the survey as of the end of April. Staff is also working with Blane Canada Ltd. to have
the data incorporated into a Nation-wide report.
% of
Business Full Time Part Time
Locations Businesses New Hires Laid Off Terminated
Surveys Employees Employees
Open
Schaumburg 131 66% 2,490 858 8 657 127
Illinois
excluding 42 74% 10,210 850 2 1,244 4
Schaumburg
United States 4,274 72% 165,408 48,000 2,484 18,000 910
8
Economic Development Pandemic Recovery Plan9 Economic Development Pandemic Recovery Plan
BRE will be different as we try to get feedback from businesses on how we can help them
survive and grow in Schaumburg. Some potential strategies that the village could work with
businesses on include:
Drop off marketing resources to local retailers offering promotions and asking them to
complete a BRE survey
Continue to engage retailers along the Golf Road commercial corridor to support
businesses during the reopening of the economy
Complete virtual BRE meetings with a variety of businesses to check in on their
progress of reopening and work environment
Leveraging the Village’s and the Schaumburg Business Association’s BRE efforts to
better evaluate workforce needs and issues
Present informational webinars with Zurich and our other insurance companies on new
liability issues for business owners addressing employee and customer safety
Produce the second installment of our financial literacy program with Access to Capital
and Wintrust to reinforce the need for businesses to have strong relationships with
their banks
Conclusion
There is a lot of pent-up demand to get back to normal. This Pandemic has altered our normal and
Schaumburg will have a new normal for our residents, businesses, employees and shoppers. The
Economic Development Pandemic Recovery Plan serves as a guideline to address the challenges
that our industries and workforce are facing. We are fortunate that Schaumburg has great
partners and a strong economic base. The village’s motto “Progress Through Thoughtful Planning”
is appropriate as we strategically look to safely open and look at the future needs of the
community. The Economic Development Department is here to help Schaumburg’s economy
progress to a new normal.
Matt Frank, Director of Economic Development mfrank@schaumburg.com 847.923.3853
Debbie Van Sickle, Economic Development Manager dvansickle@schaumburg.com 847.923.3852
Kevin Leighty, Management Analyst kleighty@schaumburg.com 847.923.3871
Kristeen Riforgiato, Secretary kriforgiato@schaumburg.com 847.923.3707
10
Economic Development Pandemic Recovery PlanYou can also read
