Henderson offers to help pay rent to attract business to Water Street

By Jeremy Twitchell

Thursday, Oct. 30, 2008 | midnight

Henderson is launching a new commercial rent incentive program to bring established businesses to the Water Street District and stabilize the city's downtown area.

The Henderson City Council, acting in its capacity as the Henderson Redevelopment Agency Board, unanimously approved the program Oct. 21 with a budget of $150,000 for its first year.

The program will not require any additional funding — its funding will come out of the Redevelopment Agency's existing programs budget.

To be eligible for the incentive, a business will have to demonstrate a history of at least three years of successful operation or sell a name brand that will be readily recognizable.

"The placement of quality, experienced businesses will decrease the amount of business turnover and staff time in trying to help businesses who constantly struggle to exist because they lack experience and capital," Henderson redevelopment staff wrote in a memo to the Council.

The incentive will cover up to 65 percent of a business' rent expenses over a three-year period, with an annual limit of $25,000 to $40,000, depending on the size of the building.

"I think this is probably the kind of thing that we need to do to be competitive downtown," Mayor James B. Gibson said.

The city has identified 17 types of niche businesses that it plans to target with the new program, including drug stores, small grocery stores, bookstores, home interior stores and art galleries.

Gibson said one of the key elements of the program is that it will only go after services that the Water Street District is lacking.

"Our objective will never be to compete in a way that will drive (existing businesses) out of business," he said. "I think that as long as we keep that in mind, this can be a valuable tool."

Jeremy Twitchell can be reached at 990-8928 or [email protected].