Downtown Franklin’s continued success has brought new challenges. Rising property values in and around downtown place greater financial demands on historic commercial spaces, requiring businesses to generate higher revenues to support rent, taxes, and ongoing upkeep. Highly successful downtowns like Franklin’s can reach a tipping point where market pressures set in motion a cycle of gentrification resulting in the loss of independent businesses and district authenticity. Supporting downtown’s economic vitality and longterm health will require strategies to manage the commercial ecosystem for balanced growth. SUMMARY OF CHALLENGES Recent and rapid increases in commercial property taxes have intensified the financial pressures facing small businesses in downtown Franklin. Downtown Franklin has long hosted a small number of chain businesses. As their presence grows, however, the character of downtown can begin to shift. A higher concentration of chains can make a shopping district feel more generic, while chains’ ability to pay higher rents can place upward pressure on commercial leases and make it harder for independent businesses to compete. As a result of Franklin’s high cost of housing, many employees of downtown businesses cannot afford to live in the city. Business owners report that their employees commute from other cities and counties. Downtown’s popularity with visitors has made it less appealing to some residents. They find it to be too crowded, hard to get a restaurant reservation, or simply find dining or shopping among tourists unappealing. This presents a challenge: how can downtown remain a first choice for Franklin’s residents? 1 2 3 4 THEME: SUPPORTING ECONOMIC VITALITY & SMALL BUSINESSES 149
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