Where the Crooked Road Bends

A Community Master Plan for  
 

Pound, Virginia 

DRAFT Report 
 

Prepared by:  

Arnett Muldrow & Associates, Ltd.

Greenville, SC 

In conjunction with: 

Mahan Rykiel Associates, Inc.

Baltimore, MD 

Mattern & Craig, Inc.

Kingsport, TN 
 

January 16, 2007 

Table of Contents 
 
 

 

  1. Introduction
    1. Background and Purpose

 

Pound, Virginia is a community of about 1,100 residents located in the far southwest region of Virginia in Wise County.  Pound is the oldest community of Wise County but was not incorporated as a town until 1950.  The community is located along the Pound River just four miles from the Virginia-Kentucky line.  Pound’s economic base relies largely on coal mining.     

In 2005, community leadership under the auspices of the Town Council began working on a series of projects designed to revitalize the business district of the Pound Community.  The Mayor, Town Council, and volunteer community leaders embarked on a detailed effort to document buildings and businesses, conduct customer surveys, and conduct meetings to discuss the future of Pound.  In December of 2005, Arnett Muldrow & Associates was hired to develop a brief vision document that would summarize the goals and objectives of the community’s revitalization effort.   

The goals of the effort became clear early in the process.  The Community Master Plan for Pound would be a roadmap for the community as a whole to do the following:

  • Preserve and enhance the small town charm of Pound by enhancing the physical environment of the community. 
  • Create opportunities for economic growth in the community by reinforcing existing businesses and encouraging new business to locate in the community.
  • Increase the quality of life for citizens of Pound through activities and enhanced public amenities for the community.
  • Use the natural and historic qualities of Pound as a resource to encourage visitation, investment, and local pride. 
    1. Report Format

 

This plan report is designed to present the findings of the Community Master Plan in a brief and easy to understand format.  It begins with two important assessment chapters.  The economic restructuring chapter is a detailed market assessment of Pound that provides the economic framework under which the plan is presented.  It looks at the private sector commercial and residential opportunities that exist for the business district.  The physical assessment chapter examines the various infrastructure improvements needed to support private investments.  These assessments are then categorized into four strategies for the future of Pound along with implementation tactics.  These implementation steps are presented as short, medium and, where necessary, long-term improvements.   

The report concludes with an implementation strategy and action plan designed to outline the steps needed to begin implementation.  This strategy is summarized in a “Strategy Board” which distills all of the recommendations of the Community Master Plan into a one-sheet document. 

    1. Acknowledgments

 

This report would not have been possible without the participation of many people in Pound. Special thanks go to the steering committee comprised of representatives of the Town of Pound, private sector stakeholders, Wise County officials and many other community leaders who actively directed the team’s work on this project.  Thanks also go to the many citizens, merchants, property owners, and other stakeholders who candidly shared their thoughts and hopes as we developed this plan.   

  1. Economic Restructuring Assessment
    1. Introduction

 

Many of the strategies for Pound rely on analysis of the market conditions that affect the community. This chapter presents the findings of the market research for Pound and provides detailed analysis that can be used to recruit business, help existing businesses target customers, and develop and refine a marketing strategy so that Pound remains competitive in the years to come. 

This effort provides a snapshot of trade patterns in the community from which certain conclusions can be drawn.  This study does not necessarily reflect the exact trade patterns that a particular business might see through the course of the year.  But, the information provided does provide valuable insight into the trade area for Pound.   

The resulting sales and consumer expenditure patterns for the areas studied then become very accurate tools to evaluate the amount of retail sales “leaking” from the community.  This information is based on the most recent data available and is a very reliable source for understanding market patterns. 

This chapter is divided into three parts.  The first describes the zip code survey and analysis presenting the findings and a definition of the market. The second section provides two distinct retail market analyses:  a retail leakage analysis and a retail shares analysis. A third section examines the housing market for the central business district.  Each section concludes with some key findings.      

It is these findings that have informed many of the marketing, economic, and physical recommendations of the main report.  This section can be used as a marketing and recruitment tool for individual businesses seeking to set up shop in Pound and for existing businesses wishing to develop marketing plans or expand product lines.

    1. Market Definition

 

In late September and early October of 2006 thirty Pound businesses participated in a zip code survey of their customers.  Merchants were provided with a form to record customer zip codes and asked to keep the log for all customers during one-week period. In all, 2085 zip codes were recorded during the one-week period.  This represented a remarkable participation rate of 50% of all businesses and nearly 80% of all retailers in the town. 

      1. Zip Code Results

 

The results of the zip code survey are listed below:

  • During the one-week period businesses recorded customers from 94 unique different zip codes and twelve different states.
  • Twenty-eight percent (28%) of the customers came from the Town of Pound and an additional thirty-nine percent (39%) were from the Pound zip code outside of the town limits. 
  • Neighboring zip codes in Wise County represented an additional twenty-one percent of the customers (21%)
  • Kentucky represented eight percent (8%) of the customers while visitors from “other” places represented about four percent (4%). 

The charts below provide further insight into the breakdown of customer visits to the participating businesses.  
 
 Figure 1:  Breakdown of visitor zip codes to the businesses.

      1. Trade Area Definitions

 

Since zip codes each have different populations, customer visits are most accurately tracked on the number of visits in relation to the population.  The table below shows customer visits per 1,000 population for each of the highest representative visits from a distinct area.     
 

Figure 2:  Visitors per thousand residents by zip code. 
 

By this measure, downtown Pound’s primary retail trade area is defined as the Pound Zip code itself both in and outside of the town of Pound.  It is obvious from the results that residents of Pound itself are more loyal shoppers than those who have a Pound zip code but live in unincorporated Wise County.  The customer loyalty then dramatically drops from 335 visits per thousand to only about 35 visits per thousand for neighboring Clintwood.  Customers from the Pound zip code itself represented nearly 70% of all the visits to local shops.   
 

Wise, VA; Mayking, KY; Jenkins, KY; Eolia, KY; and Clintwood, VA each had customer visits to Pound over 10 visits per thousand residents.  These additional zip codes listed on the table above represent what we term the “Secondary Trade Area” for Pound.  One in every five customers visiting Pound come from one of these communities.  This is an area where Pound can potentially capture additional customers. 

      1. Other Observations

 

Figure 3:  Percent "visitor" traffic in participating businesses.  Visitor is defined as any zip code not adjacent to Pound. 
 
 

While the overall visitor market to Pound represents a relatively small portion of the customer base, it is significant for a number of businesses.  The chart below shows that two businesses had over a third of their customer base from outside of the immediate trading area while an additional five had over 10% “visitor” rate to their businesses.  Remarkably, many of the “visitors” to Pound that had zip codes from far away were tracked in a number of businesses indicating a level of shop browsing in Pound that is unique for a study of this nature.  Typically, downtown merchants track little to no browsing activity.  This represents a latent opportunity for Pound to capitalize on a potential visitor market. 

      1. Trade Area Demographics

 Primary Trade Area:  Pound Zip code

  • The 2005 population of the PTA is estimated at 5,124.
  • This population has declined 2.9% from 4,979 since 2000.
  • By 2010 this population will continue to increase at 3.2% to 5,289.
  • 2005 Estimated Per capita income is $15,187.
  • Median household income is $29,620.  This income is slightly lower than Wise County, higher than Norton, but lower than Kingsport, TN.

 Secondary Trade Area:  Wise, Clintwood, Jenkins, Mayking, and Eolia Zip Codes

  • The 2005 population of the STA is estimated at 26,406.
  • This population increased by 1.3% since 2000.
  • By 2010 this population will continue to increase very slightly by 1.2% to 27,088.
  • The income levels of the Secondary Trade Area vary widely with the Town of Wise being the only income level that exceeds that of Pound. 
      1. Market Definition Conclusions

 

  • Pound is a highly localized market (69% of the customers are from the Pound zip code and an additional 23% from immediately neighboring communities)
  • Overall, few visitors are coming to Pound from other places (about 4%).  However, some businesses are seeing significant visitor traffic. 
  • Those that come from other states ARE browsing the shops.  This is a very big asset for Pound and something rarely seen in comparable zip code surveys.
  • Customers from the Town of Pound are more loyal to local shops than those that have a Pound Zip Code outside of the town limits.
  • Pound is a slow growth community with income levels that are not altogether different from the greater region. 
    1. Retail Market Analysis

Pound is a retail center serving the market defined above.  In this section the Pound retail market will be examined to identify potential opportunities for retail.  This section will look at retail in Pound in two key studies: 

  1. A retail leakage analysis that will look at the primary and secondary trade areas to see how much money is “leaking” from the area to stores in other areas.  From this, two “capture scenarios” will be developed to illustrate how much retail space could potentially be brought back into Pound based on the demand in the market.

  1. A retail shares analysis that examines performance of retail stores in Pound’s primary trade area as a benchmark of the greater region.
      1. Business Sales At a Glance

There are approximately twenty-four retail establishments in the Town of Pound that employ 171 people making retail a major component of the Pound’s economy.   

The Pound Zip Code (the Primary Trade Area) has a retail trade of about $26.1 million each year in selected retail categories (automobile and vehicle dealers as well as mail-order sales are excluded).  Professional and personal services represent another $25.4 million in trade each year.   

The Secondary Trade Area of Pound that includes Wise, Clintwood, Jenkins, and three other Kentucky communities has a retail trade of $226 million annually.  This is nearly ten times the retail trade of Pound’s Primary Trade area. 

      1. Retail Leakage Defined

“Retail Leakage” refers to the difference between the retail expenditures by residents living in a particular area and the retail sales produced by the stores located in the same area.  If desired products are not available within that area, consumers will travel to other places or use different methods to obtain those products.  Consequently, the dollars spent outside of the area are said to be “leaking”.  If a community is a major retail center with a variety of stores it will be “attracting” rather than “leaking” retail sales.  Even large communities may see leakage in certain retail categories. 

Such an analysis is not an exact science.  In some cases large outflow may indicate that money is being spent elsewhere (drug store purchases at a Wal-Mart or apparel purchases through mail-order).  It is important to note that this analysis accounts best for retail categories where households (rather than businesses) are essentially the only consumer groups.  For example, hardware stores may have business sales that are not accounted for in consumer expenditures.  Stores such as jewelry shops and clothing stores are more accurately analyzed using this technique. 
 

      1. Retail Leakage in the Trade Areas

The retail leakage analysis of Pound’s primary trade area suggests that, overall, Pound is leaking sales to other communities.  The Primary Trade Area’s sales again are $26.1 million while consumers in the Primary Trade Area are spending $48.8 million on the same retail goods each year.  In total, the Pound zip code is leaking sales to the tune of $22.7 million each year.   

Many would ascertain that the Secondary Trade Area that includes the larger retail centers of Wise and smaller centers of Clintwood and Jenkins would make up for that difference.  However, even with sales of $226 million in those areas, consumers are still spending $258 million each year.  In other words, the Secondary Trade Area is ALSO leaking sales of about $32 million each year.  Norton may be picking up some of the slack yet it is safe to assume that the Tri-Cities and even larger communities in Kentucky may be absorbing some of this retail leakage.  

These numbers represent the total retail leakage for Pound.  The real opportunities lie in the ability of Pound to attract new retail and expand existing retail within certain targeted categories.  The charts on the following pages give insight into the opportunities for Pound for specific retail categories and provide a detailed charting of retail leakage and gains in a variety of retail store types.  Please note that some categories on the charts are “subsections” of broader categories. 

 

 Pound Primary Trade Area Retail Gap AnalysisDemandSupplyOpportunity
  (Consumer Expenditures)(Retail Sales)Gap/(Surplus)
Total Retail Sales Incl Eating and Drinking Places48,761,48726,063,56122,697,926
        Automotive Parts/Accsrs, Tire Stores-44131,601,0802,071,036(469,956)
Furniture and Home Furnishings Stores-4421,397,93317,4901,380,443
        Furniture Stores-4421771,27217,490753,782
        Home Furnishing Stores-4422626,661  626,661
Electronics and Appliance Stores-4431,176,2877,0571,169,230
        Appliances, TVs, Electronics Stores-44311789,9424,895785,047
            Household Appliances Stores-443111161,4414,895156,546
            Radio, Television, Electronics Stores-443112628,501  628,501
        Computer and Software Stores-44312346,6532,162344,491
        Camera and Photographic Equipment Stores39,692  39,692
Building Material, Garden Equip Stores -4446,622,4584,810,8841,811,574
        Building Material and Supply Dealers-44416,039,4704,729,1121,310,358
            Home Centers-444112,293,2084,595,198(2,301,990)
            Paint and Wallpaper Stores-4441290,966  90,966
            Hardware Stores-44413398,615133,914264,701
            Other Building Materials Dealers-444193,256,681  3,256,681
               Building Materials, Lumberyards-444191980,800  980,800
        Lawn, Garden Equipment, Supplies Stores-4442582,98881,772501,216
            Outdoor Power Equipment Stores-4442195,66015,06180,599
            Nursery and Garden Centers-44422487,32866,711420,617
Food and Beverage Stores-4458,705,4073,244,4265,460,981
        Grocery Stores-44517,378,8482,323,3485,055,500
            Supermarkets, Grocery (Ex Conv) Stores7,037,2202,166,7124,870,508
            Convenience Stores-44512341,628156,636184,992
        Specialty Food Stores-4452993,048921,07871,970
        Beer, Wine and Liquor Stores-4453333,511  333,511
Health and Personal Care Stores-4463,929,6492,408,1591,521,490
        Pharmancies and Drug Stores-446113,316,9282,322,166994,762
        Cosmetics, Beauty Supplies, Perfume Stores167,768  167,768
        Optical Goods Stores-44613141,80355,09386,710
        Other Health and Personal Care Stores-44619303,15030,900272,250
Gasoline Stations-4477,029,7527,983,767(954,015)
        Gasoline Stations With Conv Stores-447114,474,0195,846,178(1,372,159)
        Other Gasoline Stations-447192,555,7332,137,589418,144
Clothing and Clothing Accessories Stores-4482,388,283675,5591,712,724
        Clothing Stores-44811,785,728655,2121,130,516
            Men's Clothing Stores-44811211,797  211,797
            Women's Clothing Stores-44812495,231321,708173,523
            Childrens, Infants Clothing Stores-4481390,64657,95432,692
            Family Clothing Stores-44814820,561275,550545,011
            Clothing Accessories Stores-4481534,190  34,190
            Other Clothing Stores-44819133,303  133,303
        Shoe Stores-4482380,230  380,230
        Jewelry, Luggage, Leather Goods Stores-4483222,32520,347201,978
            Jewelry Stores-44831202,56920,347182,222
            Luggage and Leather Goods Stores-4483219,756  19,756
Sporting Goods, Hobby, Book, Music Stores-4511,036,59098,259938,331
        Sportng Goods, Hobby, Musical Inst Stores-4511735,12461,639673,485
            Sporting Goods Stores-45111356,12561,639294,486
            Hobby, Toys and Games Stores-45112253,304  253,304
            Sew/Needlework/Piece Goods Stores-4511375,504  75,504
            Musical Instrument and Supplies Stores-4511450,191  50,191
        Book, Periodical and Music Stores-4512301,46636,620264,846
            Book Stores and News Dealers-45121200,7513,972196,779
               Book Stores-451211182,9673,972178,995
               News Dealers and Newsstands-45121217,784  17,784
            Prerecorded Tapes, CDs, Record Stores-45122100,71532,64868,067
General Merchandise Stores-4527,787,346635,6917,151,655
        Department Stores Excl Leased Depts-45215,097,244635,6914,461,553
        Other General Merchandise Stores-45292,690,102  2,690,102
            Warehouse Clubs and Super Stores-452911,781,328  1,781,328
            All Other General Merchandise Stores-45299908,774  908,774
Miscellaneous Store Retailers-4531,682,191602,7691,079,422
        Florists-4531185,817425,859(240,042)
        Office Supplies, Stationery, Gift Stores-4532680,554  680,554
            Office Supplies and Stationery Stores-45321294,613  294,613
            Gift, Novelty and Souvenir Stores-45322385,941  385,941
        Used Merchandise Stores-4533149,832104,67845,154
        Other Miscellaneous Store Retailers-4539665,98872,232593,756
Foodservice and Drinking Places-7225,404,5113,508,4641,896,047
        Full-Service Restaurants-72212,213,625242,9351,970,690
        Limited-Service Eating Places-72222,386,1332,650,168(264,035)
        Special Foodservices-7223426,396  426,396
        Drinking Places -Alcoholic Beverages-7224378,357615,361(237,004)

Figure 4:  Primary Trade Area Retail Gap Analysis, Source:  Claritas 
 

 Secondary Trade Area Retail Gap AnalysisDemandSupplyOpportunity
  (Consumer Expenditures)(Retail Sales)Gap/(Surplus)
Total Retail Sales Incl Eating and Drinking Places257,918,781226,315,22631,603,555
        Automotive Parts/Accsrs, Tire Stores-44138,251,7238,070,237181,486
Furniture and Home Furnishings Stores-4427,627,438863,8256,763,613
        Furniture Stores-44214,205,990810,8123,395,178
        Home Furnishing Stores-44223,421,44853,0133,368,435
Electronics and Appliance Stores-4436,474,0491,881,2664,592,783
        Appliances, TVs, Electronics Stores-443114,302,7741,863,1462,439,628
            Household Appliances Stores-443111862,58385,599776,984
            Radio, Television, Electronics Stores-4431123,440,1911,777,5471,662,644
        Computer and Software Stores-443121,954,30618,1201,936,186
        Camera and Photographic Equipment Stores-44313216,969  216,969
Building Material, Garden Equip Stores -44435,619,87635,723,202(103,326)
        Building Material and Supply Dealers-444132,456,08835,355,726(2,899,638)
            Home Centers-4441112,376,89027,084,525(14,707,635)
            Paint and Wallpaper Stores-44412492,180  492,180
            Hardware Stores-444132,145,8772,712,378(566,501)
            Other Building Materials Dealers-4441917,441,1415,558,82311,882,318
               Building Materials, Lumberyards-4441915,270,0731,895,6203,374,453
        Lawn, Garden Equipment, Supplies Stores-44423,163,788367,4762,796,312
            Outdoor Power Equipment Stores-44421507,34782,476424,871
            Nursery and Garden Centers-444222,656,441285,0002,371,441
Food and Beverage Stores-44545,141,15146,157,196(1,016,045)
        Grocery Stores-445138,221,58129,164,2569,057,325
            Supermarkets, Grocery (Ex Conv) Stores-4451136,442,81928,063,6698,379,150
            Convenience Stores-445121,778,7621,100,587678,175
        Specialty Food Stores-44525,128,92315,775,734(10,646,811)
        Beer, Wine and Liquor Stores-44531,790,6471,217,206573,441
Health and Personal Care Stores-44620,722,36815,896,0144,826,354
        Pharmancies and Drug Stores-4461117,462,05914,832,9522,629,107
        Cosmetics, Beauty Supplies, Perfume Stores-44612884,022586,145297,877
        Optical Goods Stores-44613782,746307,706475,040
        Other Health and Personal Care Stores-446191,593,541169,2111,424,330
Gasoline Stations-44735,581,11348,180,733(12,599,620)
        Gasoline Stations With Conv Stores-4471122,712,92740,422,332(17,709,405)
        Other Gasoline Stations-4471912,868,1867,758,4015,109,785
Clothing and Clothing Accessories Stores-44813,166,7687,608,5305,558,238
        Clothing Stores-44819,811,4666,393,8423,417,624
            Men's Clothing Stores-448111,119,569  1,119,569
            Women's Clothing Stores-448122,819,8783,710,780(890,902)
            Childrens, Infants Clothing Stores-44813468,761214,516254,245
            Family Clothing Stores-448144,467,0582,351,7112,115,347
            Clothing Accessories Stores-44815196,824  196,824
            Other Clothing Stores-44819739,376116,835622,541
        Shoe Stores-44822,022,839798,6551,224,184
        Jewelry, Luggage, Leather Goods Stores-44831,332,463416,033916,430
            Jewelry Stores-448311,220,214416,033804,181
            Luggage and Leather Goods Stores-44832112,249  112,249
Sporting Goods, Hobby, Book, Music Stores-4515,883,767717,9695,165,798
        Sportng Goods, Hobby, Musical Inst Stores-45113,985,879383,2053,602,674
            Sporting Goods Stores-451111,942,986267,8981,675,088
            Hobby, Toys and Games Stores-451121,352,90320,5921,332,311
            Sew/Needlework/Piece Goods Stores-45113406,12831,500374,628
            Musical Instrument and Supplies Stores-45114283,86263,215220,647
        Book, Periodical and Music Stores-45121,897,888334,7641,563,124
            Book Stores and News Dealers-451211,323,362137,0511,186,311
               Book Stores-4512111,226,200133,6931,092,507
               News Dealers and Newsstands-45121297,1623,35893,804
            Prerecorded Tapes, CDs, Record Stores-45122574,526197,713376,813
General Merchandise Stores-45241,589,13533,347,7338,241,402
        Department Stores Excl Leased Depts-452127,389,98224,490,1512,899,831
        Other General Merchandise Stores-452914,199,1538,857,5825,341,571
            Warehouse Clubs and Super Stores-452919,345,0685,656,3793,688,689
            All Other General Merchandise Stores-452994,854,0853,201,2031,652,882
Miscellaneous Store Retailers-4538,949,2935,163,5623,785,731
        Florists-45311,008,8652,333,018(1,324,153)
        Office Supplies, Stationery, Gift Stores-45323,656,7081,978,3491,678,359
            Office Supplies and Stationery Stores-453211,583,1811,5961,581,585
            Gift, Novelty and Souvenir Stores-453222,073,5271,976,75396,774
        Used Merchandise Stores-4533824,868184,457640,411
        Other Miscellaneous Store Retailers-45393,458,852667,7382,791,114
Foodservice and Drinking Places-72228,912,10022,704,9596,207,141
        Full-Service Restaurants-722111,850,7194,774,0567,076,663
        Limited-Service Eating Places-722212,711,58815,651,070(2,939,482)
        Special Foodservices-72232,271,154662,9691,608,185
        Drinking Places -Alcoholic Beverages-72242,078,6391,616,864461,775

Figure 5:  Secondary Trade Area Gap Analysis, Source:  Claritas

      1. Market Potential Analysis

Pound’s downtown cannot reasonably expect to capture all of the leaking sales from all retail categories where a sales gap exists.  As a result, we must look at a potential capture scenario that might illustrate the potential for additional downtown retail should some of the lost revenues be captured. 

The table below illustrates the new or expanded retail space that could be supported in Pound by capturing these sales under a scenario where 20% of leakage from the primary trade area is captured and 10% of the leakage from the secondary trade area is captures.  The sales per square foot for retail store types have been obtained from a combination of Dollars and Cents of Shopping Centers, published by the Urban Land Institute and retail industry benchmarks from Bizstats.com.   

Figure 6:  Supportable square footage scenarios.  Source:  Arnett Muldrow & Associates, Claritas, www.bizstats.com 
 

Based on this scenario table, Pound could support 21,689 of additional retail space.  However, the 3941 square feet of Department Store space and 8054 square feet of Grocery Store space is not a likely candidate for Pound and is shown in red. These store types are likely to locate in Wise and Norton and the recent opening of the Food City is evidence of this captured opportunity.   

The most important retail opportunities for Pound are the following:  

  • Furniture and home furnishings:  these stores can take on a variety of formats from mom-and-pop accessory stores, to locally crafted furniture.  These types of stores typically can have a broad trading area and can fit in well with complementary stores such as antiques.
  • Clothing stores:  these stores also are highly flexible ranging from consignment shops to ladies ready-to-wear.  Again, these store types can attract from a large trade area. 
  • Sporting Goods:  these store types can range from hunting and fishing gear to camping, biking, and outdoors goods.  This may be an opportunity for certain existing stores to expand product lines. 
  • Office, stationary and gifts:  This broad category represents a good match for many downtown locations.  In spite of the growth of major office supply chain stores, small-town stores that carry some products are still in demand particularly if they combine gifts as a component of the stores’ inventory. 
  • Full-service restaurants:  Pound has several existing restaurants that serve a variety of food.  This growing sector of retail trade could carve out a niche that is currently underserved in the market without being direct competition with existing restaurants.

Additionally, several other demand indicators might help existing businesses expand their merchandise mix to attract shoppers who are otherwise going somewhere else to buy these products.  While these opportunities represent a scenario for growth in Pound, it is important to recognize that there are many factors that relate to a business’s success other than market demand.  Careful consideration should be given prior to making any business decisions on this data alone. 

    1. Retail Shares Analysis

Retail shares analysis places Pound’s primary trade area businesses as a proportion of the larger region.  This, in turn, is used to benchmark selected retail categories to determine if particular retail types are underperforming (representing an opportunity for expansion) or performing exceptionally well (representing an opportunity for clustering additional related businesses around a strength.  This study is entirely different from a leakage study because it accounts for the potential for visitor traffic to impact trading patterns in a business district.  

Businesses located in Pound’s combined trade area (excluding automotive related retail) account for 3.2% of all retail within a three county area including Wise, Dickenson, and Kentucky’s Letcher County.  This figure becomes the benchmark against which particular retail strength can be examined.   

The table above tallies the results of the shares analysis showing those retail categories that have particular strengths in the three county region.  Used merchandise stores account for 15% of the retail trade in the three counties.  Antique stores are a subset of used merchandise.  Not only does Pound account for a significant share of the three county market, it has nearly as much volume of retail sales as the larger Wise community to the south.   

Foodservice and dining also appears to be a strength of the community overall indicating a dual trend of leakage meaning pent up demand and regional market strength.   

In conclusion, both restaurants and antiques do represent a significant opportunity for Pound in addition to the other retail store types indicated above.   
 

    1. Residential Market Study

In addition to the business trade for Pound, the residential market should also be examined to determine whether there are opportunities for residential growth in the business district.  Residential development has become a keystone for revitalizing commercial districts across the country and can be an important component of the success of downtown. 

      1. Residential Supply

There are an estimated 2,081 occupied housing units in Pound’s primary trade area in 2005.  Of these, 80.54% of them are owner occupied housing units with the average length of residency being fourteen years.  This represents a very stable market where residents tend to hold on to their property and stay put for a long period of time. 

Of the housing units, 57.3% are single-family detached units with another 37.5% as mobile home units.  This represents a market that is dominated by single-family detached unit types since only about 5% of the units are multi-family type products.   

The 2005 estimated median housing value for Pound’s Primary Trade Area is $73,378 which is slightly higher than the Secondary Trade Area (Wise, Clintwood, Jenkins, Eolia, and Mayking) who’s value is $68,438.  Of course this lages the median housing value for Virginia which is $212,000 (wildly skewed by high housing values in Northern Virginia) and the United States, which is $167,500. 

      1. Residential Demand

As mentioned before, Pound is slightly growing with an estimated increase in population of about 160 people by 2010.  The growth of the community is also mirrored by growth in the housing supply.  In fact, 197 new housing units have been added to the stock since 1999.  In the five years prior to 1999 another 199 units were added to the stock.  This represents 16% of the housing units dating from 1995.   

Judging by these trends, it can be reasonably assumed that household size is declining and that many in the community are “upgrading” their housing with newer units since the pace of unit growth is outpacing that of population growth.   

To be sure, there will be some additional demand in housing.  We estimate somewhere between 10 and 20 units per year could be added to the Pound Primary Trade Area over the next few years.  In all likelihood, these units will mirror the existing conditions and be single-family detached houses or manufactured products.   

However, the market for apartments and “over the shop” living in downtowns has emerged as a trend in recent years.  Pound does have an existing supply of this housing type though anecdotes from the local community indicate constant turn-over and trouble leasing such units.   

It is difficult to “pin-down” particular demand for housing in the business district of Pound but it would seem that a limited number of units (perhaps a dozen or less) could be supported in the coming years.  These units would need to be targeted to the very limited market that exists for a for-rent attached product in the market.   
 
 

 

  1. Physical Assessment

3.1.1 Introduction 

Many of the physical recommendations in this report are based on the team’s assessment of the physical condition of the Town in addition to input from stakeholders.  The Town was assessed in terms of overall character, districts the downtown core, gateways, physical infrastructure including streetscape and public spaces, architectural resources and natural features.  Refer to Map A, Pound Districts; Map B, Downtown Core Analysis; and Figure 7. 

3.1.2 Natural Features 

With its location within the Appalachians, Pound is blessed with outstanding natural features and resources.  Most distinct are the mountains and narrow valleys where settlement and development has occurred.  In addition, the meandering Pound River and its tributaries weave their way through the community in a way that makes it almost impossible not to be near a river or have views to a river corridor. Lush vegetation occurs throughout the community and occasional groupings of evergreens provide visual interest and frame pleasing vistas.  

Finally, the rivers which helped carve the valleys have resulted in rock outcroppings throughout Pound.  While most likely taken for granted, the presence of rock throughout contributes to Pound’s identity.  In addition, rock has been used historically as a building material for many of the buildings for steps and retaining and foundation walls.  Some homes and structures have been constructed of cultured stone as well.  There is the potential to use stone and stone accents throughout Pound to reinforce this identity. 

3.1.3 Town “Districts” 

Pound’s geographic location along the Pound River in the Appalachian Mountains results in a unique character for the community.  The town is comprised of a linear arrangement of developed “districts” each with a distinct “sense of place” defined by the adjacent hills and bends in the river.  Development between districts is less intense.   

The Downtown Core is the most intensely developed commercial district and is the heart of Pound. It is located at the junction of Main Street and Clintwood Highway.  Less intense commercial development occurs south of the core along Indian Creek Road, linking the core to another commercial district where the supermarket is located.  Less intense commercial development also occurs north of the core along Main Street, with more intense development clustered near the intersection of Main Street and Route 671.   

Challenges of geography (the Pound River, steep slopes, rock outcroppings, etc.) result in significant amounts of green space between districts.  One of the more distinct characteristics of Pound is the number of times one has to “cross” the Pound River, one of its forks or tributaries.  While these crossings may go unnoticed by many, they made a strong impression on this planning team, signaling the leaving of one district and arrival in another. This system of crossings and alternating rhythm of development and natural areas contributes to Pound’s unique character.  Future development and revitalization efforts should respect and capitalize on this inherent character. 

3.1.4 Downtown Core 

The Downtown Core is the most distinct district and represents the heart of Pound. Gateways into the core are clearly defined by the architecture and/or river crossings, leaving no doubt when one has “arrived downtown”. Gateways occur at each end of Main Street and at the river crossing along Clintwood Highway.  The intersection of Clintwood Highway and Main Street is the physical heart and main crossroads of the downtown and provides for a strong identity for Pound. Building facades are almost continuous within the core, as are sidewalks, providing opportunities for a walkable downtown.  While the Town Hall is located downtown and close to the core, it feels removed because it is separated from the core by the Pound River and it faces the rear facades of the development along Main Street. While physically removed, Town Hall is the civic heart of the community. Its relationship to the physical core should be strengthened. 

3.1.5 Gateways 

Gateways to a community are important because they establish a first impression of that community for visitors as well as residents who experience the gateways on a regular basis.  As described above, the gateways to Pound’s downtown core are quite distinct along Main Street and Clintwood Highway.  In addition, the gateways to the broader Pound community are quite distinct as well, particularly along Highway 23.  The natural characteristics of the Appalachians predominate along the highway providing for a very positive first impression of Pound.  The southern and northern gateways off of the highway are very visible and clearly defined, however, they don’t fully capitalize on the opportunity to draw upon the unique natural characteristics of the area to reinforce Pound’s identity.  There is a stone railroad abutment at the northern gateway to Main Street along the highway that could be incorporated into Pound’s identity.  New plantings at the southern gateway indicate a strong sense of community pride. There is an opportunity, however, to consider reorganizing and supplementing this planting to create a stronger gateway that is in scale with the highway.   

3.1.6 Physical Infrastructure 

Pound has a very distinctive and positive character as a result of the surrounding natural features and how they dictated development patterns.  The physical infrastructure, however, is in fairly poor condition, with the exception of recent improvements along Highland Avenue and the bridge crossing to the south of the downtown core.  The extent of the sidewalk system along Main Street to the north of the core and throughout downtown and the Town in general is quite impressive.  However, while the scale of the downtown lends itself to being very pedestrian-friendly and walkable, the condition of the sidewalks create walking hazards as well as poor “curb appeal”.  In addition, there is significant truck traffic that travels through the downtown, particularly through the un-signalized intersection of Main Street and Clintwood Highway,  which negatively influences the walkability of downtown. While this traffic cannot be eliminated, at least in the near future, other improvements to the sidewalk system and pedestrian network could help to mitigate the effects of the traffic.   

While downtown has a distinct core area, actual gathering spaces are very limited.  With the exception of small paved area surrounding the monument at Main and Clintwood and the new fenced play/picnic area at Town Hall, there are no places, other than parking lots, to accommodate events.  Because the Town Hall acts as the civic hub for Pound and, because of its adjacency to the river, consideration should be given to incorporating more of an outdoor civic space in this area.    

3.1.7 Architectural Resources

Many of the commercial buildings in Pound have been altered over the years, appear worn and few stand out as significant works of architecture. The almost continuous building façade in the downtown area and the resulting mix of building forms, however, results in a pleasing overall composition.  In addition, many of the buildings have “good bones” and have great potential to become an attractive part of the downtown experience.  The commercial building on Main Street, north of the downtown core is an excellent example of how a good selection of paint color and well-executed paint job can make a positive impact. 

3.1.8 Conclusions   

There are many physical characteristics that contribute to a town’s image and quality of life. Some are a result of location and geography, which means there is little one can do to change them, while others are the result of manmade influences and the built environment.  Pound is blessed with a premier natural environment of mountains, hills, valleys, rivers and lush vegetation that is the foundation for the community and has shaped how it has developed.  This results in an extremely positive identity and quality of life.  Many of the manmade influences, however, detract from these positive characteristics primarily because of the challenges of keeping the infrastructure maintained and in good repair. The good news is that these are all things that can, over time, be “fixed”.  The recommendations found later in this report focus on how revitalization efforts can focus on a few specific physical improvement projects which will not only improve the “curb appeal” and quality of life downtown, but will also support the economic and marketing objectives for Pound 
 

  1. Four Strategies for Pound
    1. An Active Downtown: Events and Marketing
      1. Background

 
Pound has a strategic location on The Crooked Road, Virginia’s Heritage Music Trail.  The Crooked Road represents a significant partnership effort among many state and local groups to provide a cultural link for Southwest Virginia that will promote tourism and economic development respectful of the heritage, talents, and people of the region.  The Crooked Road is fast realizing its objectives with press in the Washington Post and Southern Living among many others.   

Pound has a unique location along the Crooked Road.  The road sharply turns in the middle of downtown Pound.  All who travel from the Country Cabin in Norton to the Ralph Stanley museum in Clintwood must pass through the heart of Pound.   

The community is uniquely positioned from a market standpoint as well.  While tourism traffic in downtown is not large yet, several significant findings of the market study show promise for Pound.  First, the visitors that do come to Pound, tend to browse the shops. Second, Pound has a niche in antiques and used merchandise and a smaller but no less significant niche in restaurants.   

The high quality and variety of the local retail base belies the relatively tired outward appearance of the business district.  This is a much easier problem to solve than a beautiful downtown with no business base since the base is largely intact.   

Perhaps most importantly, Pound lacks a cohesive positive image that reinforces community pride and promotes the town to the region and to visitors.   The community’s rich history, its personalities and famous hometown heroes, and its stunning physical location form the basis for an image that can reinforce all that is positive about the town. 

      1. Goal

A thorough and thoughtful marketing effort will foster a positive image for Pound reinforcing community pride and driving activity to the Town.  The result will be an expanded customer base for existing and new businesses.

      1. Action Strategies

First Steps – 2007

  • Develop a marketing logo and brand for Pound that represents the community:  The Town of Pound and the local business community should work begin using a unified logo that helps reinforce a positive identity for the town.  Local businesses can use the logo in their advertising efforts while the town incorporates the brand into banners, gateway signs, and event marketing.  A unified “brand” will help reinforce a positive image for the community.  The image on the following page is a sample of a proposed logo that reinforces the unique position of Pound in the river valley along with the tag line “Where the Crooked Road Bends” indicating the strategic position of Pound on the Crooked Road Trail.    


  • Host a monthly event series in downtown focusing on bringing local and regional residents into downtown.  Events have become a time-tested technique to retain and recruit business to a commercial district.  With Pound’s unique musical heritage as well as the student population of the community, the community should explore a monthly event series focusing on music.  Events can take time to generate large crowds but they can be key drivers to generate interest in the commercial district.  Some helpful hints can make events more successful:
  • Hold events outside in a highly visible location. 
  • Keep it small and simple.  There is no need to have the biggest and most impressive event, sometimes the more simple the event the more successful the outcome.
  • Use local merchants and restaurants.  Allow them to showcase their products in a part of the event or direct visitors to businesses.  Some of the most successful events have happened inside retailers:  an antiques scavenger hunt or a progressive dinner. 
  • Work with the local schools.  Nothing gets parents out more successfully than involving young people in an event.  Citizens of Pound are proud of J W Adams and Pound High and they will get involved in activities that relate to young people.
  • Consider a charitable cause.  Even if the cause is revitalization of downtown, people are attracted to events that have a purpose.

  • Use the town logo and brand to create a shopping and dining guide to Pound.  The retail choices in Pound are significant but it is often hard for people to realize everything offered without it being in “black and white”.  A shopping and dining guide both in print and at the www.townofpound.com is a great way to communicate everything Pound has to offer.  The Virginia Tourism Corporation has a mini-grant program to fund brochures and activities that drive tourism to a community.  Information about the grant can be found at www.vatc.org

Next Steps – 2008-2009

  • Develop the Pound Ambassadors program to recruit additional retail to downtown Pound.  The data in this report can be used to help provide information to businesses in the region that might be looking at expansion into Pound.  Community ambassadors are volunteers who travel to targeted businesses with information about expansion opportunities in Pound.  They are not looking to “poach” businesses from other places, but rather are talking about additional location opportunities in Pound.  Other communities have used similar programs to attract new business to downtown.  
  • Form a Pound Merchant’s Association to jointly promote local businesses.  With the significant number of merchants in town, Pound would greatly benefit from a Merchant’s or Business Association.  Such a group could provide a forum for businesses to discuss issues, plan events and eventually develop cooperative marketing in the region.  For Pound, the association need not be a “formal” meeting each month but rather an informal get together quarterly.

  • Develop joint marketing between the community and local businesses.  Once the Pound Merchant’s Association is formed, they should explore a joint marketing effort to promote the businesses of Pound in a cooperative manner.  The example below shows how a launch ad for a cooperative effort might look. 
    1. Building the Business: Preparing for Private Investment
      1. Background

Pound has the potential to capture sales from local customers who are leaving the market to make purchases elsewhere and to expand both its market reach and the visitor base to the community.    With over thirty retail merchants, Pound has a high quality retail base for a town its size and a niche market in antique stores and restaurants that it can use to capture additional market share in other retail categories.  While the inside quality and variety of the stores is excellent, the outside appearance of the downtown is tired and worn.  With a fresh looking appearance, Pound could realize considerable “buzz” and generate additional traffic for its retailers. 

      1. Goal

Downtown Pound will realize its market potential as dilapidated building are revitalized with freshly painted facades and renovated storefronts. 

First Steps – 2007

  • Implement a façade master plan program to renovate all storefronts in downtown Pound collectively. Several communities in South Carolina have pursued grant funding that has helped fund a “facade master plan.”  Unlike a traditional facade grant program, this is a comprehensive rehabilitation of many downtown buildings at once. The property owner gives the Town or a comparable entity a temporary easement (usually five to seven years) on the facade of their building allowing the local government to spend funds on its improvement. In exchange for this temporary easement, the Town administers 100% grant funds that will pay for a facade improvement program. The advantages of this type of program are several:  
  1. It allows for a single source of project management, a single source of design, and a single source for construction that makes the project run more efficiently while creating a design that preserves the overall appearance of the community.
  1. It allows for a dramatic makeover of a number of facades at once unlike traditional grant programs that rely on the property owner to become motivated to participate. 
  2. It allows the funding to be allocated in the most efficient way possible.  An allocation of $7000 per building will allow flexibility.  Some buildings will require only $2000 of improvements while others will require $10,000. 
  3. When used in conjunction with a major grant source like CDBG funds, the facade enhancements are realized with no costs to the building owner or tenant allowing them to concentrate on interior upfit, marketing, or other efforts. 

   Process:

  1. Apply for and receive grant funding for design and construction.
  2. Develop guidelines for the administration of the grant funds including a selection process for façade grant recipients.  For Pound we are recommending an initial grant funding of $150,000 that would allocate $7000 per façade for 25 facades.  This will allow some facades to receive less and others more.  Pound may wish to further screen applicants based on investments they may be making on the interiors of buildings. 
  3. Solicit RFQ for design professionals to develop the facade enhancement designs.
  4. Negotiate and hire design professional.
  5. Design professional photographs subject properties and interviews each property owner/tenant to ascertain appropriate enhancement approach.
  6. Design professional develops renderings and technical recommendations for each facade.
  7. Administrative party and design professional develop specifications and bid documents.
  8. Prospective contractors pre-qualified.
  9. Bid package submitted to pre-qualified contractors.
  10. Negotiate with and hire low bidder.
  11. Construction commences with oversight by administrative party and design professional.
  12. Punch list and project close out.

    In total, the effort could take as little as ten months to complete.  The example below showing Whitmire, South Carolina illustrates the significant impact that a façade master plan can have on a downtown’s appearance.   This project is being implemented and will be complete this summer.   

  • Continue to host and promote an annual clean-up day in Pound.  The first Pound clean up day was held in 2006.  This is an important step to get volunteers involved in the process.  The next clean-up day could be held in conjunction with the façade improvements occurring downtown. 

Next Steps – 2008-2009

  • Develop loan pool program for small business support.  Loan pools have been successful tools in helping communities do creative projects, fund business start-ups, and create investment in revitalization.  For Pound, we are recommending a start up fund of $100,000 for a loan pool program that can be housed with the Town or through a cooperative effort of the local banks and the town.  
  • Work with additional property owners on renovation and up-fit of entire buildings to prepare for retail growth.  Every property owner is not likely to participate in the façade program initially.  Pound will want to reserve some funds for a second phase project in 2009. 

 

    1. A Walking Downtown: Streetscape Enhancements
      1. Background

Visitors to local shops are browsing and the physical structure of the downtown core results in a distinct “sense of place”.  While sidewalks are present, some physical improvements to the sidewalks have been completed including the first phase of the “Riverwalk,” however, most are in poor condition.  Some businesses have also created sidewalk displays that add interest to the pedestrian experience, however, street furniture and pedestrian-scaled lighting is absent.  There is one crosswalk in the core area which is inadequate for the size of the downtown core, particularly when considering the amount of vehicular and truck traffic through the downtown. Refer to Map C, Downtown Pound Illustrative Master Plan.

      1. Goal

Residents and visitors to downtown Pound will be greeted with a friendly, comfortable and appealing streetscape with improved infrastructure creating a safe and walkable downtown

      1. Action Strategies

First Steps – 2007

  • Continue sidewalk improvement program by focusing improvements in the downtown core area. While the condition of sidewalks needs to be addressed throughout Pound, the focus should be the downtown core area where shoppers are already browsing.  Since downtown represents the heart of the community, the investment here will make the most positive impact.  This recommendation includes the following:
  • Focus area should be from the west side of the Clintwood H