Commercial districts need a high volume of foot traffic to support thriving small businesses. Supplemental district management services can dramatically increase this pedestrian activity. In recent years, there has been widespread interest in forming district management organizations (DMOs) to provide these services in all types of communities throughout the commonwealth. By unpacking the toolset Massachusetts currently has available to finance DMOs, this analysis reveals a lack of funding to help these initiatives launch and grow to an impactful size. Financial modeling suggests modest state investment will seed a vibrant district management sector to strengthen downtowns and main streets across the Commonwealth.
District Management for Downtown Vitality
Commercial districts need a high volume of foot traffic to support thriving small businesses. Supplemental district management services can dramatically increase this pedestrian activity.
Key Takeaways
- District management organizations (DMOs) encourage thriving local commercial districts for small businesses to flourish.
- DMOs require an annual operating budget of between $200,000 – $700,000 depending on the district size. Increased state funding could ease the operating gap DMOs typically face.
- Between now and 2030, cohorts of 5 large DMOs could be supported each year starting at $500,000 and peaking at $5.5 million annually. These DMOs could general $13 million annually for local revitalization.