Princeton, WV
Princeton has used a district-wide planning approach. The Mercer Street Grassroots District has monthly events, mixed use buildings, renovated storefronts, two new restaurants, a brewery, coffee shop and lots of foot traffic. The vision is transformational through music, the arts, and food. A local non-profit (RiffRaff Arts Collective), a foundation, state entities, and the City of Princeton have all provided catalytic capital, while repayable capital has come from banks and local residents. There has been a significant investment into public art as a key strategy including murals, open space, and facade improvements.
Photo credit: WV Community Development Hub
Stage of Investment: Advanced implementation
Population: 5,831 (2019)
Date Started: 2013
Estimated Completion: 2022
Key Players
Spotter: Lori McKinney at The RiffRaff Arts Collective, Greg Puckett at Community Connections
Framer: Kate Greene - contracted by the city for bigger projects
Project Manager: Multiple owners
Community engager: Lori McKinney
Technical Assistance: The WV Community Development Hub, Brownfields Center, and the Center for Resilient Communities (WVU)
Investors: City of Princeton, local foundation, Federal Home Loan Bank, and local individuals
The Spark
Lori McKinney finally came home after spending time in London, becoming a singer at Dollywood, and graduating college. She brought her voice, her gift of songwriting, and her partner, Robert, who loves music production and lighting design. Lori also brought her love of community, and she truly believes that everyone has something to contribute. Robert creates the physical spaces - from building renovations to art installations, to lights on Mercer St. - and Lori creates connections and engagement to welcome folks into those spaces. Lori has worked with Greg Puckett, Director of Community Connections, Inc., who at the time was painting facades on local buildings and renovating the local theater to instill pride and show what “could be.”
The Challenge
In 2006, Lori came home to empty storefronts, people without housing, deteriorating buildings, crime, and a lack of local foot traffic. Worst of all, potential investors had decided there was nothing worth funding. However, Jerry McKinney and his two daughters invested in a historic building on Mercer Street that became the home of performance venues, an art boutique, and a recording studio.
One challenge has been the property owners, known locally as “slumlords,” in the Grassroots District who won’t renovate or sell their buildings at reasonable prices. The City is now enforcing the “2018 rental compliance program,” in which owners must have and implement a plan of action to maintain their properties, or risk paying the City a fine. This program enforced by the Building Code Office, increases property values for all. For those owners who don’t want to make improvements, their other option is to sell.
“The approach is multifaceted and holistic, rooted in knowing that music, art and food bring people together and cause exponential positive energy. Public art and gathering spaces cultivate a community that attracts participation, new residents, and tourists. We spot investment opportunities, connections, and weave a tapestry of downtown transformation.”
The Investment
Catalytic investment is key to undertaking the pre-work needed for development. The WV Community Development Hub (“The Hub”) provided community convening, planning support, leadership development training, and funds for multiple feasibility studies for construction of a permanent farmer’s market structure. The Hub also funded the renovation of the town’s theater, and the Lonnie Gunter Center. The Hub provided mini grants to help launch projects like The Downtown Countdown, a major New Year’s Eve celebration, civic engagement events, and community celebrations. The Northern Brownfields Assistance Center at WVU provided support and funding for a Developer’s Tour which included a guidebook with specs for available buildings on Mercer Street. WVU also provided technical assistance for branding the district, and pre-work for the renovation of the Town Square. The Federal Home Loan Bank of Pittsburgh provided capacity building grants to support Lori as a paid downtown development organizer, which fueled the momentum of development. The Center for Resilient Communities at WVU provided RiffRaff with grant-writing support and project development. The City also plays an important role in funding and providing labor for streetscape and safety improvements and investing in capital projects including the Public Library and Railroad Museum.
The local foundation has taken a different approach than usual among such organizations. After seeing community-led passion and development, the foundation decided to build on that energy and success. Beyond providing resources for pre-work, the foundation has been “first in,” taking on the risk and providing grants towards the purchase of buildings, including the Farmers Market structure, the Theater, the train museum, and the Lonnie Gunter Center. Foundation staff note that it is difficult to secure large capital improvement and programming investments without owning the building/space. The Foundation walks the grantees/businesses through the process of securing and planning for the building. Luckily, as of October 2021, the buildings have been secured.
This is also a story of local investment by folks from the community who are excited to see music, arts, and food on Mercer Street as it reminds them of the places they have explored. The excitement on Mercer Street is also drawing artists and investors from around the region. This approach may take longer, but the result is a town which is community-owned and community-controlled.
The Return on Investment:
The mixed use of buildings in the Grassroots District is essential to a positive financial ROI. Over 30 new businesses have come to Mercer St. since 2013, some of which have moved into renovated buildings.
The local foundation’s primary goal is to give back to the community. The founder of the foundation’s descendants recall him once saying, “Whether $1.00 or $1 million, give to what people are passionate about.” The focus on Mercer Street comes from a desire to bring back what once was: the hustle and bustle, the connections, and the care among community members. The Foundation believes creating spaces for these interactions is key to success. And for the younger generations, it’s about creating a future for families, and building on what they’ve learned and seen through their experiences.
What’s Next?
Renovations continue and new businesses are opening. The adjacent historic district is expanding and bringing more visitors and locals to the Grassroots District. The City’s Economic Development Authority is exploring ways to provide support to those who want to purchase and use city-owned buildings, including a revolving loan fund, business coaching, and more. Reid Miller’s small clothing manufacturing facility is growing and creating new jobs for seamstresses. The next challenge will be integrating the new WVU health facility and a national park into the community.
Key Takeaways
Invest in “third spaces.” Ideas and action come when people have a place to gather and converse. Multiple third spaces create a diverse group of community members.
The city can play a leadership role. While there are multiple perspectives in Princeton, the City Council staff and the EDA board are committed to development from within the community.
Support local investment and local ownership. Two examples stand out: 1) the EDA is exploring the transfer of ownership and use of the city-owned buildings to community members through loans and business assistance; and 2) an “intermediary investor” is engaged in supporting a community Owners Group to build wealth (see profile).
A foundation can take on risk and leverage investment. Foundations do not typically provide grants to purchase buildings.
Key Investments in the Capital Stack
Equity: $2.5M
Senior Debt: $600K
Loans for theater and Lonnie Gunter Center
Subordinated debt: None
Grant or Subsidy: $2M
Technical assistance grants from The Hub, Downtown Appalachia and Brownfields,
Flex-E Grants from the State Development Office,
EFA funding for transformational arts programming,
ARC funding for downtown growth,
Capacity building grants from FHLBank,
Mini-grants from The Hub,
Grants for festivals and Lonnie Gunter Center
Corporate sponsors