Columbus Monthly / November 2010 / November / Taking care of business

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Taking care of business

With transportation infrastructure improvements on the horizon, incentive plans for new development and a commitment to meeting the needs of its business community, Worthington is well-positioned for the future.

When it comes to economic development, Worthington's geography is one of its greatest challenges and one of its greatest advantages.

It's a challenge because Worthington is completely surrounded by other cities on all sides. "We're built-out and landlocked," says city manager Matt Greeson. "We can't grow through annexation, and we have very few vacant parcels. We have to do what we've always done - look to redevelopment and look for new opportunities for existing parcels."

That's where the advantages of Worthington's geography come into play, Greeson says. "We're along [Interstate] 270, we're inside the beltway and we have better access than almost any other community to Central Ohio's transportation infrastructure." That infrastructure includes I-270, which connects to both U.S. Rt. 23 and St. Rt. 315. Access is an important consideration for businesses looking to call Worthington home, which is one of the reasons the city is excited about plans to improve its two most important transportation access points.

The I-270/Rt. 23 interchange is scheduled to receive a $125 million facelift from the Ohio Department of Transportation, with work beginning in 2014. Improvements also are planned for the I-270/Rt. 315 interchange, along with other smaller outerbelt improvements. Altogether, it's estimated that ODOT will make around $280 million in improvements to freeways in the Worthington area over the next several years.

"There are significant transportation improvements that are being planned and that are going to occur in the next decade in Worthington,' Greeson says. "We know that investment follows transportation infrastructure, among other things, and we are doing land-use planning to make sure we take full advantage of that."

In addition to improving access to and from the city, the improvements will serve as "distinct gateways" to Worthington and all of Central Ohio, Greeson says. Worthington is participating in the process to design the northern entryway to the city and the highway overpass to make it aesthetically pleasing and in line with the city's historic atmosphere.

Planning for the future

While the transportation improvements may attract new business, they can't create new land in the city. "We're a built-out community, so we don't have greenfields for further development," says Robyn Stewart, economic development director for the city of Worthington. All new business development has to take place within the framework of what's already developed. "One of our challenges is the aging buildings in our community," Stewart says. "How do you have those buildings be competitive in the future?"

One answer to that is now taking shape at City Hall. The city is well into a planning study for the East and West Wilson Bridge Road corridor. The corridor is home to many of the city's established office buildings, restaurants and retail shops, including Worthington Square.

The study is looking at current land uses, conducting market research to determine viable uses for the corridor and collecting input from property owners. The city has contracted with planning consultants Bird Houk Collaborative to evaluate development alternatives and identify tools to help develop the corridor, which runs along Wilson Bridge Road from the Olentangy River to the railroad tracks that pass through the city on the east.

A steering committee made up of business leaders, neighborhood residents, city officials and planners is leading redevelopment efforts for the corridor.

The goal of the Wilson Bridge Road study is not just to figure out what's best for Worthington right now, but also its needs in the future, Greeson says. "There are some areas where the use today might not be the best use 20 years from now," he says. "So we're thinking about how they may change over time."

When completed, Stewart says, the Wilson Bridge corridor plan will give the city and developers a better idea of what type of businesses would work best where. The plan may call for certain sites to be targeted to small offices, for instance, while others might be ideal for large corporate headquarters. The corridor also is likely to include medium-density residential in the form of high-end condos or rental properties.

Once work on the Wilson Bridge Road corridor is completed, Stewart says, the city will turn its attention to the Huntley Road corridor, which is home primarily to warehouses and light industrial businesses. "It's another prime corridor to move into for a study in the future."

This kind of planning, even for areas that many would consider finished as far as development is concerned, is essential, Greeson says. "These are all vibrant, competitive places, but what communities have to do is stay focused on the future and think of tweaks and redevelopment as time goes forward," he says. "Because if you don't do that, it's difficult to stay competitive in the marketplace."

The continued development of these corridors and other areas of the city will take the cooperation and support of the existing business community, and Greeson says that's something the city has. "This is a very connected community," he says. "We work together to support each other, and one of our primary objectives is to ensure that the businesses that are here succeed and are served well."

Selling the city

In the current economic downturn, when only a limited number of businesses are looking to open, relocate or redevelop, all cities are looking to lure development to their communities. City leaders understand that it's important for Worthington to stay competitive. "Businesses are looking at the entire region," Stewart says. However, she doesn't see other northern suburbs such as Westerville, Dublin or Powell as adversaries in a win-or-lose competition. She knows many of the people working in those communities, she says, and it's important for the entire region to be successful.

Still, there are advantages city leaders believe puts Worthington at the top of the list for any business looking to relocate or expand. In addition to having a prime location, Worthington is an upscale, attractive community, Stewart says. "It's an aesthetically pleasing environment. [Businesses] see properties that are attractive and that can help support their image."

Companies also are interested in communities that can support their businesses in the future, and that's something Worthington offers, Stewart says. "We pride ourselves on providing a high level of city services, whether that's police and fire, snow removal or street maintenance."

The city's dedication to supporting business development got a boost in May when Worthington residents approved an increase in the city's income tax from 2 percent to 2.5 percent. The money allows the city to invest in its infrastructure through capital improvement projects and further invest in economic development through the hiring of an economic development manager.

The city also encourages development through its Venture Grant program, which provides grants to new and expanding Worthington businesses that meet minimum employment and payroll thresholds. The amount of a grant is related to the company's projected payroll over the next five or more years. And the city has three Community Reinvestment Areas, located in the Wilson Bridge Road corridor, the Huntley Road industrial corridor and the High Street commercial corridor. Businesses can receive tax incentives for redevelopment and reinvestment in those areas.

In addition to providing financial incentives, the city has taken steps to make it easier for companies to do business there. Worthington has a streamlined review process for projects that help existing businesses grow or new businesses relocate to the city. The streamlined process includes one-on-one, individualized assistance through the permit and development process; a simplified fee structure that helps businesses estimate permit fees, and accelerated schedules for application review and building permit issuance.

One recent transplant to the city is Lutheran Social Services of Central Ohio, which relocated from downtown Columbus to Worthington in July.

The organization was looking for more room for its corporate headquarters, and Worthington offered the space needed at a lower price per square foot, as well as easy freeway access, says Jason Zielinski, director of marketing and public relations for Lutheran Social Services. "Once we started talking a year ago about relocating, the city of Worthington reached out to us and offered us the Venture Grant," he says. The $50,000 grant helped to pay for the company's move.

The city also worked closely with them throughout the relocation process. "They were very easy to work with," Zielinski says. "We really, really feel that we're part of the community."

This level of service is an important element in attracting businesses to the city, says Kathryn Paugh, executive director of the Worthington Area Chamber of Commerce, which partners with the city in economic development and redevelopment. "City officials take it very seriously and give personal attention to those inquiring about office space or exploring the area, or considering special needs for a site," she says.

The city also has amenities and recreational opportunities that attract businesses looking for a home. The excellent school system is a draw, along with conveniences such as Worthington's community center, which includes fitness facilities. "All businesses with employees within the city limits get discounted rates at the community center," Stewart says.

The city's appeal has enticed a range of businesses to locate there, Greeson says. "Worthington is home to several of the region's most significant employers." He cites Worthington Industries, Anthem Blue Cross and Blue Shield, MedVet—which is a destination across the Midwest for the treatment of pets, he says—and AAA Ohio Auto Club, which is headquartered in Worthington.

"We have a lot of strong businesses across the spectrum, from manufacturing to office to retail, and that makes a dynamic and diverse and strong business community," he says.

More than 70 percent of Worthington Area Chamber of Commerce members are small businesses, according to Paugh. "Small businesses in the service industry dominate the type of businesses we have, followed by retail and manufacturing."

A focus on downtown

While attracting new business is important, it's not the top economic development concern.

"One of our primary objectives is to ensure that the businesses that are here succeed and are served well," Greeson says. "Job number one is to make sure they grow and expand. That's where most business growth in communities occurs—within the business community where they exist."

The first business development in Worthington took place in the area now known as Old Worthington, at the intersection of High Street and Rt. 161. The business district is pedestrian-friendly and a popular area for residents visiting its restaurants and stores. The Village Green, located on all four corners of the High Street/161 intersection, is the heart of the city. It regularly hosts events such the annual Worthington Arts Festival.

"We always have a focus on downtown," Greeson says. "We're an historic community, and I think Old Worthington or downtown Worthington is the heart and soul of this community. It's a place where we conduct business activity and where a lot of the civic activity occurs. It also presents us with a sense of community a lot of cities would die to have."

The city continues working to make Old Worthington a welcoming place for businesses. One example is the enhancement of the Kilbourne Memorial Building, the site of Worthington's first library and school. The building recently underwent exterior improvements that include a new roof, exterior paint, window repair and landscaping.

The city's Community Improvement Corporation is developing a strategy to attract business tenants to the historic building, which is located on the Village Green. The next step is making improvements to the building's interior to get the site better prepared for a potential client to move in.

Worthington Square

Another site that likely will get a facelift in the near future is Worthington Square. Located in the Wilson Bridge Road corridor at Wilson Bridge Road and High Street, the mall has suffered from a large number of vacancies in recent years. Last August, local real estate developer Tom Carter announced that he had joined with two business partners from Texas, Morris Capital Partners, to purchase the 168,000-square-foot mall.

"I'm very excited about this opportunity," he says. "I think it's a fundamentally great piece of real estate. It just needs some new vision and some reinvention, and I'm very confident that the residents of Worthington and the surrounding communities will be happy with what we do."

Carter gained experience with retail development while working at Steiner + Associates, where he was in charge of the development of the second phase of Easton Town Center. "Not that we're trying to duplicate that," he says, "but there are some things that make Easton successful that can make any retail successful."

One of those things, he says, is to "bring the inside out and the outside in. It's really about trying to get the mall to speak more to the outside and brighten up the inside with new plants, better seating, updating the color scheme—really bringing it up to today's standards."

The mall could be a winner, he says, noting that several stores there are among the top 25 percent of stores in their chains. "It really speaks to some ownership and management issues," he says. "Previous absentee ownership has caused the mall to be in a somewhat steady state of decline, and we think that having local ownership will help it come back."

Among other things, Carter says the mall needs more food and entertainment options and the retail component needs more youth-oriented stores. He says the new owners will work to "create a more rounded-out customer appeal . . . make it a place people will frequent more often."

Greeson says the city is looking forward to the expected changes to Worthington Square. "We're really excited and eager to work with the new owners of the mall to revitalize that important asset," he says. "We think it's one of the best locations in Central Ohio."

The right balance

While the city is eager to grow and nurture the business community, Stewart says it's also focused on doing the right thing for the residential community. "I see the balance as being pretty good right now," she says. "It's about working on and supporting what we're already doing."

Carter, who is not only a developer in Worthington, but also a resident, says the city is well suited for business. "Because it's such an old city, finding real estate for any kind of new development is a challenge, but I think the city has really developed some progressive ideas," he says. "And the location of Worthington can't be beat. It's really poised for some great opportunities as the economy continues to rebound."

That kind of support from residents is typical in the community, Greeson says. "We have an incredibly engaged and sophisticated citizenry that is really connected to some of these planning efforts that we're undertaking," he says. "It's really forward-thinking and engaged about planning for our future and supports economic development and redevelopment."

It's a combination of these factors—the continued improvement to infrastructure, an engaged planning process, an involved business community and a sophisticated residential population—that will help Worthington maintain a strong mix of business, Greeson says.

"Those all set the stage for positive reinvestment in this community, which is not a story that every old, built-out suburb can tell."

Lawrence Houck is a writer living in Columbus.