WHAT IS A COMMERCIAL DEVELOPMENT CORPORATION (CDC)?

A Commercial Development Corporation (CDC) is an association of merchants and business individuals located on a street or within a defined geographical area. Its mission consists in:

• Livening up the community
• Assisting merchants in their activities
• Advocating for its members’ interests
• Organizing promotional events and enhancing the territory
• It is an initiative established by and for the community.

This unique model was developed in Quebec and has few equivalents worldwide. It has inspired other countries and was recently imported to France by the Confédération des Commerçants de France.

 

HOW DOES A CDC WORK?

CDCs are non-profit organizations with their own boards of directors and governance rules.

When setting up a CDC, businesses in the area commit to contributing financially to support its activities.

CDCs are also supported by the city in which they are located and, in some cases, by the borough. Although they are private, CDCs are legally regulated organizations constituted as independent bodies.

 

WHAT ARE THE CHALLENGES OF A CDC?

Similar to a city or a regional county municipality (RCM), CDCs act within their territory to address issues affecting their members and development.

Externally, CDCs must address problems affecting the viability of their street or commercial district, particularly regarding its activities and image.

Internally, CDCs may face numerous organizational challenges, including governance, recruitment or mobilization.

The challenges are manifold:

• The street or area is underdeveloped, evidenced by high vacancy rates or declining foot traffic.
• The street is vibrant but has not reached its full development potential.
• The street is undergoing major construction work affecting commercial activity. Consequently, consumers are less likely to visit businesses in the area, leading to reduced foot traffic.
• The street wants to establish a strong and distinctive commercial position to stand out from other commercial hubs in its environment.
• The CDC strives to develop a mobilising vision for its members to prioritize actions and make the best choices for its territory.
• The CDC faces governance issues and board of directors mobilization challenges.

 

HOW CAN ESPACE STRATÉGIES ASSIST YOU?

The commercial sector is often considered a reflection of a neighbourhood’s vitality. Each neighbourhood has its unique identity influenced by its residents, so it is crucial to ensure that commercial offerings align with demand to correspond to the character of its inhabitants.

Espace Stratégies can help you with a range of needs to invigorate your area’s commercial offerings, including:

• (Re)defining the street’s commercial positioning to identify what makes your area unique.
• Developing the CDC’s strategic plan, involving all stakeholders (CDC staff, administrators, members, institutional partners, citizens, etc.).
• Implementing a commercial recruitment strategy to attract new businesses to occupy vacant premises or influence the commercial mix composition.
• Establishing a profile of the commercial offerings, including establishment inventory by type, composition of the commercial mix, vacancy rates, etc.
• Establishing a profile of commercial demand, for example, by studying foot traffic, consumer origin and all sociodemographic data. Some streets may have a local focus, while others attract customers from other neighbourhoods or cities.
• Conducting a walk-through diagnosis, walking the street to identify its assets and paint a dynamic picture of its situation and challenges.