MDA seeks to make Metuchen a ‘destination of choice’

METUCHEN — Since the inception of the Metuchen Downtown Alliance (MDA), some 65 new businesses have opened in the downtown.

“The downtown business retention rate is 85 percent,” said Isaac Kremer, executive director of the MDA, adding that more than 90 percent of businesses surveyed have had year-to-year increases in sales.

Kremer said there is almost zero inventory of ground floor space.

“We are already talking with owners to fill spaces when leases come up,” he said.

Kremer; Eric Berger, MDA chair; and Stuart Schooler, treasurer of the MDA, presented the introduction of the MDA 2019 budget at a Metuchen Borough Council meeting on Oct. 15.

“We see the assessment is increasing slightly as the borough’s contribution, which comes from the Parking Authority, is going down from $125,000 to $100,000,” Kremer said. “In the meantime, we are adding an additional $43,000 in new earned revenue [through sponsorship program, resident campaigns and other contributors], which is above and beyond the base we get from the assessment and borough contribution.”

The projected budget for the MDA will be $275,000 — 50 percent for staffing and office rent, 10 percent for maintenance and cleaning, 5 percent for recruitment, retention and marketing, 5 percent for planting, and 27 percent for capital improvements.

In 2016, the Metuchen Parking Authority invested $150,000 to jump start the process, with no contribution from the Downtown Improvement District (DID) Assessment; in 2017, the borough invested $150,000 and the DID invested $125,000, from 3.2 percent of real estate taxes collected; and in 2018, the borough’s investment was reduced to $125,000 and the DID’s investment was increased to $150,000 from 3.8 percent of real estate taxes collected.

In 2019, the borough’s investment will be $100,000, and the DID’s will be $175,000 from 4.4 percent of real estate taxes collected. By 2020, the borough’s investment will be $75,000 and the DID’s $200,000 from 5 percent of real estate taxes collected.

Kremer said the expenditure portion of the budget is consistent with budgets presented in the past, which has an operating portion and funds for an innovation and promotional team.

With the innovation team, Kremer said the MDA is working with businesses to help them grow and introduce the businesses to new technology. With the promotional team led by Bobbie Theivakumaran, Kremer said retail promotions have been held throughout the year.

Street Improvements

Included in the budget is $21,000 for a street cleaning service, Commercial District Services, of Jersey City. The service includes 26 street cleaning and maintenance visits each year.

“There are things you can notice and some you might not notice from keeping sidewalks in order, picking up litter, to removing stickers from poles and some newspaper receptacles,” Kremer said.

Grants

Kremer said they offer two separate matching grants to the businesses. A business can apply for a matching grant up to $5,000 to retrofit storefronts. He said Runner’s High and Fresco Italian Deli and Catering took advantage of the matching grant to clean out their windows and freshen up the insides of the businesses. Kremer said they also helped Smoker’s Haven and Fresco with their cash wrap designs.

“The goal is to create a positive business downtown,” he said.

The second matching grant is for innovation, whether it is introducing new technology and new products to the downtown, or to build stores within stores and create pop-up retail.

Kremer said all the grants received have been smaller grants up to $5,000 or less. He noted the borough’s grant writer has been a helpful partner.

“Recently we submitted to Middlesex County for a $30,000 grant request. … If received, it will help us with up to 10 store front rehabs,” he said.

Kremer said the MDA is continuing to seek additional grants through connections of the AARP, which awarded funds for the transformation of an alley between Classic Travel and Metuchen News.

Edward Wetzel, a local artist, designed and painted the “Imagination is More Important than Knowledge” mural in the alley.

“The little capital [we can help provide] when business resources restrained, it is really the key to unlock potential and let them grow,” Kremer said.

TV and Interactive Marketing

Some $24,000 is allocated for TV and interactive marketing. Kremer said the primary focus is a current 60-second commercial and several social medias. He said they keep a detailed media log of impressions [interactions] made of the downtown.

“Over a two-year period, there have been 14 million impressions made of the downtown,” he said.

Kremer said the goal is to identify Metuchen as a destination of choice rather than a destination of default.

“I have had people come to me in the last month interested in coming and opening a business,” he said.

The Metuchen Downtown Alliance is a non-profit public-private partnership, led by Kremer, that manages and markets the downtown for the borough, working with a volunteer board and businesses to develop a strategic plan identifying new retail and other businesses to recruit for Metuchen and connect businesses with landlords that have vacancies.

The district area, which consists of only commercial businesses and/or commercial businesses with residential units, includes the Metuchen SportsPlex on Durham Avenue down Middlesex Avenue with the new development to Main Street and Amboy Avenue.

Contact Kathy Chang at [email protected].