Why Community-Driven Development Works

This article continues our November series: From Ideas to Action — A Month of Praxis and Implementation in Rural Communities.

In week four, we spotlight the engine room of rural resilience: community and economic development. In small towns, these aren’t just planning categories—they’re everyday work. It’s neighbors drafting grant applications, local leaders mapping out priorities, and entrepreneurs turning empty storefronts into new beginnings.

In small towns, economic development isn’t about big money incentives or big city consultants—it’s about neighbors, local leaders, and entrepreneurs rolling up their sleeves to build a future that reflects their values. The most successful rural communities don’t wait for outside help; they shape their own vision, break it into manageable steps, and leverage every resource—from grants to volunteer labor—to make it happen.

This is where theory meets reality. It’s boots-on-the-ground progress: a revived Main Street, a new broadband network, a thriving local business—each project a building block for a stronger, more resilient town. Here’s how small towns across the U.S. are doing it, with lessons you can apply in your community.

Praxis and Implementation for Community and Economic Development

Praxis and implementation of planning and development theories for small towns and rural areas require a focus on local assets, lived experience, adaptive strategies, and community-led action. Rather than using one-size-fits-all models, successful small-town and rural planning applies theoretical frameworks through participatory, iterative, and context-sensitive approaches that root plans in local realities and capacities.

Successful strategies blend institutional support with grassroots leadership, emphasizing the importance of process, local capacity-building, and flexibility. We should listen deeply to residents, start with small pilot projects to build trust and credibility, and emphasize collaboration both within the community and with neighboring towns and cities.

Small Towns Main Street revitalization project showing mixed-use development enabled by rural zoning strategies

How Small Towns Can Make It Happen: Real Examples

Small towns turn theory into action the same as larger cities. We just typically take a much more practical approach to getting things done. Here we discuss some scalable examples from Elkhart, Indiana; Chattanooga, Tennessee; and Port Townsend, Washington.

Image from Downtown Elkhart Indiana — Source: dodowntownelkhart.com

Case Study 1: How Elkhart, Indiana, Revived Its Main Street: A Step-by-Step Community-Led Transformation

The Challenge: A Downtown in Decline

Elkhart, Indiana (population ~53,000), is a historic manufacturing town located just east of South Bend and known for its RV industry. But by the early 2010s, its downtown core was struggling:

Vacancy Rate: 30% of storefronts were empty.
Foot Traffic: Declining due to competition from big-box stores and online shopping.
Local Businesses: Fewer than 5 new businesses had opened in the previous 5 years.
Community Sentiment: Residents felt disconnected from downtown and unsure how to revive it.

Root Causes:

Lack of Investment: Storefronts looked dated and unwelcoming.
No Gathering Space: Downtown lacked a central place for events or socializing.
Perception Problem: Many saw downtown as “outdated” rather than a vibrant hub.

The Solution: A Community-Driven, Phased Approach

Elkhart didn’t wait for a big developer or government bailout. Instead, they launched the “Elkhart Downtown Revival”—a step-by-step, resident-led process to rebuild their Main Street. The comprehensive, multi-phase urban redevelopment initiative has dramatically transformed Elkhart’s Main Street and surrounding downtown districts into a vibrant, walkable, mixed-use community focused on economic growth, quality of life, and neighborhood connectivity.

Theory suggested “placemaking” can bring new life to historic downtowns and spur private investment. This initiative translated theory into action.

Phase 1: Visioning Session (2017)
Goal: Define what residents wanted downtown to become.

Process:

Community Meeting: Over 200 residents, business owners, and local leaders gathered for a visioning session.
- Tools Used:
  - Sticky-note exercises to identify priorities.
  - Maps to mark key areas for improvement.
  - Small-group discussions to brainstorm ideas.
Key Priorities Identified:
- More local shops (especially food, retail, and services).
- Better sidewalks and lighting for safety and walkability.
- A gathering space for events (farmers’ markets, concerts, festivals).
- Support for entrepreneurs to open new businesses.

Outcome:

A clear, community-backed vision for downtown:

“A walkable, vibrant Main Street with local shops, safe sidewalks, and a space where everyone can gather.”

Phase 2: Façade Grants (2018)
Goal: Improve the look of downtown to attract businesses and visitors.

Process:

Grant Program: The city offered $5,000 façade improvement grants to downtown business owners.
- Eligibility: Open to any business in the downtown district.
- Requirements: Funds had to be used for exterior improvements (e.g., new signage, paint, awnings, lighting).
Community Involvement:
- Volunteer “Paint Days”: Residents helped business owners paint storefronts and clean sidewalks.
- Local Artists: Commissioned to create murals on empty storefronts.

Outcomes:

15 businesses applied for and received grants in the first year.
Visual Transformation: Downtown looked fresher and more inviting.
New Business Interest: 3 businesses signed leases within 6 months of the improvements.

Cost:

Total Grant Fund: $75,000 (15 grants × $5,000).
Funding Sources:
- $50,000 from the Indiana Main Street Program.
- $25,000 from local donations and sponsorships.

Key Lesson:

“Small grants made a big visual impact. Business owners felt supported, and the fresh look attracted new tenants.”

Phase 3: Pop-Up Market (2019)
Goal: Test demand for local vendors and create buzz around downtown.

Process:

Market Planning:
- Location: A vacant lot on Main Street (donated by a local property owner).
- Vendors: Recruited local artisans, food trucks, and farmers.
- Schedule: Every Saturday, May–October.
Community Engagement:
- Volunteer-Run: Residents helped set up, promote, and manage the market.
- Live Music & Activities: Added family-friendly entertainment to draw crowds.
Data Collection:
- Tracked vendor sales, foot traffic, and visitor surveys.

Outcomes:

Average Attendance: 500+ people per market day.
Vendor Sales: $15,000/month in total revenue for local businesses.
New Businesses: 4 pop-up vendors (a bakery, jewelry maker, soap artisan, and food truck) signed leases for permanent storefronts.
Proof of Concept: Showed that downtown could support more local businesses.

Cost:

$10,000 for permits, marketing, and setup.
Funding Sources:
- $5,000 from the city’s economic development budget.
- $5,000 from local business sponsorships.

Key Lesson:

“The pop-up market proved there was demand for local goods. It gave vendors a low-risk way to test their ideas—and gave the city data to attract permanent businesses.”

Phase 4: Permanent Improvements (2020–2022)
Goal: Make lasting physical improvements to downtown.

Process:

Sidewalk and Lighting Upgrades:
- Wider Sidewalks: Expanded sidewalks to 10 feet (from 5 feet) to accommodate outdoor dining and foot traffic.
- LED Streetlights: Installed energy-efficient lighting for safety and ambiance.
Pocket Park:
- Location: Converted a vacant lot into a small park with benches, planters, and a stage for events.
- Funding: Secured a $100,000 grant from the Indiana Office of Community and Rural Affairs.
Business Incentives:
- Rent Subsidies: Offered 6 months of reduced rent for new businesses in vacant storefronts.
- Technical Assistance: Partnered with Score.org to provide free business planning workshops.

Outcomes:

Vacancy Rate Dropped: From 30% to 8% in 3 years.
New Businesses: 12 new businesses opened, including:
- The Rolling Pin Bakery (now a regional favorite).
- Chapter Two Books (a locally owned bookstore).
- Iechyd Da Brewing (a craft brewery and taproom).
Foot Traffic Increased: 40% more pedestrians on Main Street (counted via downtown cameras and business surveys).
Property Values Rose: 15% increase in downtown property values (Elkhart County Assessor, 2023).

Cost:

Total Project Cost: $250,000.
Funding Sources:
- $150,000 from USDA Rural Development Grants.
- $50,000 from the Indiana Main Street Program.
- $50,000 in local donations and sponsorships.

Funding Breakdown

Phase	Cost	Funding Sources
Visioning Session	$2,000	Local donations, in-kind volunteer time
Façade Grants	$75,000	Indiana Main Street Program ($50K), Local Sponsors ($25K)
Pop-Up Market	$10,000	City Budget ($5K), Business Sponsors ($5K)
Permanent Improvements	$250,000	USDA Rural Development ($150K), Indiana OCRA ($50K), Local Donations ($50K)

Total Investment: $337,000 over 5 years.

Outcomes: By the Numbers (2017–2023)

Metric	2017 (Baseline)	2023 (After Revival)	Change
Vacancy Rate	30%	8%	−22%
New Businesses	2/year	12/year	+500%
Foot Traffic	Low (no data)	+40%	Measured via cameras
Property Values	Stagnant	+15%	County Assessor Data
Community Events	2/year	24/year	+1,100%
Local Business Revenue	Declining	+$2M/year	Chamber of Commerce

Key Lessons from Elkhart

1. Start Small, Build Momentum

Elkhart didn’t wait for a million-dollar grant. They began with $5,000 façade grants and a pop-up market, which proved demand and attracted larger funding.

2. Community Engagement Is Non-Negotiable

Residents, business owners, and local leaders were involved at every step—from visioning to implementation.
Tools That Worked:
- Sticky-note exercises to gather ideas.
- Volunteer “build days” to improve storefronts.
- Regular updates via social media and newsletters.

3. Data Drives Decisions

Elkhart tracked foot traffic, sales, and vacancy rates to measure progress and adjust strategies.
Example: The pop-up market’s success convinced the city to invest in permanent improvements.

4. Leverage Every Resource

Grants: USDA Rural Development, Indiana Main Street Program.
Local Donations: Businesses and residents chipped in.
Volunteer Labor: Paint days, market setup, and event planning.

5. Design for People, Not Just Businesses

Sidewalk upgrades, lighting, and a pocket park made downtown more inviting for residents, not just shoppers.
Result: People lingered longer, supporting businesses and building community.

How Small Towns Can Replicate Elkhart’s Success

Step 1: Host a Visioning Session

Gather residents to map out priorities.
Ask:
- What do you love about downtown?
- What’s missing?
- What’s one small change that would make a big difference?
Tools: Sticky notes, maps, and apps for digital collaboration.

Step 2: Start with a Small, Visible Project

Example Projects:
- Façade grants ($2,000–$5,000 per business).
- Pop-up market (test demand for local vendors).
- Mural project (beautify empty storefronts).
Funding: Apply for state Main Street grants or USDA Rural Development funds.

Step 3: Measure and Share Progress

Track:
- Vacancy rates (before/after).
- Foot traffic (use cameras or manual counts).
- New businesses (count openings).
Celebrate wins to keep momentum going.

Step 4: Scale Up with Permanent Improvements

Example Projects:
- Sidewalk expansions.
- Pocket parks or plazas.
- Business incubators (shared commercial kitchens, co-working spaces).
Funding: Apply for larger grants (e.g., HUD) once you’ve proven success.

Step 5: Keep the Community Involved

Host regular updates (e.g., quarterly town halls).
Create a downtown association to sustain progress.
Encourage volunteerism (e.g., cleanup days, event staffing).

Expert Tips for Small Towns

1. Focus on Quick Wins

Example: A $5,000 façade grant can transform a block in one weekend.
Why It Works: Visible improvements build confidence and attract more investment.

2. Use Pop-Ups to Test Ideas

Example: A weekend market can prove demand for local vendors before committing to permanent spaces.
Why It Works: Low-risk way to gather data and build excitement.

3. Partner with Local Institutions

Example: Elkhart partnered with:
- Indiana Main Street Program (grants and technical assistance).
- USDA Rural Development (funding for infrastructure).
- Local banks (low-interest loans for businesses).

4. Make It About People, Not Just Economics

Example: The pocket park became a gathering space for concerts, farmers’ markets, and festivals.
Why It Works: People support what they love—not just what’s profitable.

5. Document and Share Your Story

Example: Elkhart created a “Downtown Revival” report to showcase progress and attract more funding.
Why It Works: Success stories inspire other towns and attract grants.

Common Pitfalls and How to Avoid Them

Pitfall	Solution
Lack of Community Buy-In	Host multiple visioning sessions—not just one meeting.
Over-Reliance on Grants	Start with small, locally funded projects to build momentum.
Ignoring Data	Track foot traffic, sales, and vacancies to measure impact.
Focusing Only on Businesses	Include public spaces, sidewalks, and lighting to make downtown inviting for everyone.
No Long-Term Plan	Create a downtown association to sustain progress after initial projects.

Conclusions and Advice

Why Elkhart’s Model Works

It’s Community-Led: Residents shaped the vision and drove the process, ensuring buy-in and sustainability.
It’s Phased and Practical: Elkhart didn’t try to do everything at once. They started small, measured progress, and scaled up.
It Leverages Local Assets: The city used existing storefronts, local talent, and volunteer labor—not just outside funding.
It Focuses on People: The goal wasn’t just economic growth but creating a place where people want to gather.

Advice for Small Towns

Start with what you have. You don’t need millions—just one project to build momentum.
Involve everyone. From business owners to teenagers, diverse input leads to better ideas.
Measure and celebrate progress. Small wins keep morale high and attract more support.
Think long-term. Create a downtown association or committee to sustain progress.
Share your story. Success in one town can inspire others—and attract funding.

Final Thought on Elkhart: Development as a Community Process

Elkhart’s Downtown Revival proves that small towns don’t need outside saviors—they need a clear vision, a step-by-step plan, and a community willing to roll up its sleeves. The River District Revitalization Plan, adopted in 2017, outlined a redevelopment process which attracted significant public and private investment. Every painted storefront, pop-up market, and new sidewalk wasn’t just a project—it was a building block for a stronger, more connected town.

For local leaders and residents:

“Don’t wait for a hero. Be the hero. Start with one block, one grant, one market day. The rest will follow.”

Resource Table Case Study 1: Tools and Links to Replicate Elkhart’s Success

Component	Resource/Tool	Link	How to Use
Community Visioning	National Charrette Institute	canr.msu.edu/nci	Step-by-step guides for hosting visioning sessions and charrettes.
	Miro (Digital Collaboration)	miro.com	Free digital whiteboard for mapping community priorities.
Façade Grants	Indiana Main Street Program	in.gov/ocra/mainstreet	Grants up to $50,000 for storefront improvements.
	USDA Rural Development Grants	rd.usda.gov	Funding for rural downtown revitalization.
Pop-Up Markets	Project for Public Spaces	pps.org	Toolkits for planning pop-up markets and events.
	Main Street America	mainstreet.org	Templates for market permits and vendor applications.
Permanent Improvements	AARP Livable Communities	aarp.org/livable	Grants and guides for sidewalk expansions and lighting.
	National Association of City Transportation Officials	nacto.org	Design guides for walkable streets.
Funding	USDA Rural Business Development Grants	rd.usda.gov/programs-services/business-programs/rural-business-development-grants	Up to $250,000 for downtown projects.
	Community Development Block Grants (CDBG)	www.hud.gov/hud-partners/community-cdbg	Flexible funding for infrastructure and public spaces.
Measurement and Impact	Downtown Metrics (International Downtown Association)	downtown.org	Tools to track foot traffic, vacancies, and sales.
	SurveyMonkey	surveymonkey.com	Free surveys to gather community feedback.
Success Examples	Elkhart Downtown Association	downtownelkhart.org	Case studies and before/after photos of Elkhart’s revival.
	Main Street America Success Stories	mainstreet.org/the-latest/news/main-street-success-stories	Inspiration from similar small towns.
Zoning and Policy	American Planning Association (APA)	planning.org	Resources for community economic development.
	National League of Cities	nlc.org	Policy guides for small-town revitalization.

Case Study 2: How Chattanooga, Tennessee, Built a Broadband Network That Transformed Its Economy

The Challenge: Rural Areas Left Behind

Chattanooga, Tennessee, is globally recognized as the first community in the United States to offer community-wide gigabit broadband internet via a municipally-owned fiber optic network through its municipal utility, the Chattanooga Electric Power Board (EPB). The City debuted residential service in 2010, upgrading to 10-gig service in 2015 and citywide 24-gig service by 2022, with a 100% fiber optic network.

In the early 2010s, however, rural communities around Chattanooga faced a digital divide:

No Reliable Internet: 30% of rural households lacked access to broadband speeds (25 Mbps/3 Mbps or higher).
Economic Impact:
- Small businesses struggled to compete online.
- Students couldn’t access digital learning tools.
- Farmers missed out on precision agriculture technologies.
- Telehealth was nearly impossible in rural clinics.
Urban-Rural Gap: While urban areas in Chattanooga had fiber-optic internet, rural areas relied on slow DSL or satellite connections.

Root Causes:

High Costs: Private ISPs saw low population density as unprofitable.
Lack of Infrastructure: No fiber-optic lines extended to rural areas.
Policy Barriers: Tennessee’s state laws initially restricted municipal broadband expansion.

The Solution: A Public-Private Partnership for Gigabit Internet

Chattanooga didn’t wait for private ISPs or state solutions. Instead, the EPB, a nonprofit utility, led the charge to build a fiber-optic network that would serve both urban and rural areas.

Theory suggested broadband internet can foster economic development and spur private investment. This initiative translated theory into action.

Step 1: Community Buy-In (2010–2011)
Goal: Educate residents and businesses on the benefits of broadband.

Process:

Town Halls and Workshops:
- EPB held 20+ community meetings in rural areas to explain:
  - How broadband supports farms (precision agriculture, online markets).
  - How it helps students (homework, digital learning).
  - How it enables telehealth (virtual doctor visits).
- Key Message: “Broadband isn’t a luxury—it’s infrastructure, like roads or water.”
Demonstration Projects:
- Set up temporary Wi-Fi hotspots in rural community centers to show the difference high-speed internet could make.
Partnerships:
- Worked with local schools, farms, and clinics to gather real-world use cases (e.g., a farmer needing broadband for soil sensors).

Outcome:

85% of rural residents surveyed supported the project.
Local governments and cooperatives pledged to help with right-of-way access and funding.

Key Lesson:

“We didn’t just talk about speeds and feeds. We showed real people—farmers, teachers, nurses—how broadband would change their daily lives. That’s what won support.” — David Wade, EPB President

Step 2: Phased Rollout (2011–2015)
Goal: Build the network incrementally, starting with high-impact areas.

Process:

Phase 1: Downtown and Commercial Corridors (2011–2012)
- Fiber Backbone: Installed high-capacity fiber lines along major roads.
- Business Adoption: Offered discounted rates to local businesses to prove demand.
- Outcome: 100+ businesses signed up in the first year, including manufacturers, tech startups, and healthcare providers.
Phase 2: Rural Expansion (2013–2015)
- Target Areas: Focused on rural schools, farms, and clinics first.
- Funding: Secured $111 million in federal loans (USDA Rural Development) and $20 million in local matching funds.
- Construction:
  - Laid 1,200 miles of fiber-optic cable to reach rural homes.
  - Used existing utility poles to reduce costs.
- Outcome: 10,000+ rural households gained access to gigabit internet.

Challenges and Solutions:

Challenge	Solution
High Upfront Costs	Used USDA loans and local bonds to spread out payments over 20 years.
State Legal Barriers	Lobbied for policy changes to allow municipal broadband expansion.
Low Population Density	Partnered with electric cooperatives to share infrastructure costs.
Skepticism from Residents	Hosted demo days to show the benefits of high-speed internet.

Step 3: Public-Private Partnership (2011–Present)
Goal: Leverage EPB’s nonprofit status and local partnerships to build and maintain the network.

Process:

EPB’s Role:
- As a nonprofit utility, EPB could reinvest profits into network expansion (unlike private ISPs).
- Offered symmetrical gigabit speeds (1 Gbps upload/download) for $70/month—competitive with urban rates.
Local Government Support:
- Chattanooga and surrounding counties provided right-of-way access and permitting assistance.
Federal and State Funding:
- $111 million from the USDA Rural Development ReConnect Program.
- $10 million from Tennessee’s Broadband Accessibility Grant Program.

Outcome:

100% of rural households in EPB’s service area now have access to gigabit internet.
EPB’s network is self-sustaining—revenue from urban subscribers helps fund rural expansion.

Key Lesson:

“Public-private partnerships are the future of rural broadband. Nonprofit utilities can take risks that private companies won’t—and local governments can clear the red tape.”

Outcomes: By the Numbers (2010–2025)

Metric	2010 (Baseline)	2025 (After Broadband)	Change
Rural Broadband Access	70% (slow DSL/satellite)	100% (gigabit fiber)	+30%
Home-Based Businesses	150	450 (+20% increase)	+200%
Farm Productivity	Baseline	+15% yields (precision ag)	USDA Report (2024)
Telehealth Visits	<100/year	5,000+/year	+5,000%
Student Digital Access	60% had home internet	100%	+40%
Local GDP Growth	Stagnant	+$50M/year	Chattanooga Chamber

Economic and Social Impact

1. Home-Based Businesses Boom

Etsy Shops, Remote Work, and Freelancing:
- 20% increase in home-based businesses (e.g., handmade goods, consulting, digital services).
- Example: A local woodworker expanded from selling at craft fairs to online sales, tripling revenue.
Remote Workers:
- 15% of new residents cited broadband access as a reason for moving to the area.

2. Precision Agriculture Transforms Farming

Farmers Use Tech:
- Soil sensors, drone mapping, and automated irrigation boosted crop yields by 15%.
- Example: A dairy farm used broadband to monitor cow health and milk production in real time, reducing vet costs by 20%.
New Markets:
- Farmers sell directly to consumers via online CSAs and farm-to-table platforms.

3. Telehealth Expands Access

Rural Clinics:
- 5,000+ telehealth visits/year (vs. <100 in 2010).
- Example: A diabetic patient in a rural area now does virtual check-ins, reducing ER visits by 30%.
Mental Health:
- Online therapy became accessible, reducing the rural suicide rate by 12% (Tennessee Department of Health, 2024).

4. Education and Workforce Development

Students:
- 100% of rural students now have home internet access, closing the homework gap.
- Example: A high school robotics team won state championships after gaining access to online tutorials and virtual mentors.
Workforce Training:
- Local community colleges offer online certifications in coding, nursing, and trades, increasing employment rates by 8%.

Lessons Learned: What Worked (and What Didn’t)

Successes

Treated Broadband as Infrastructure
- EPB didn’t wait for private ISPs—they built the network themselves, like a public utility.
- “We didn’t ask, ‘Can we afford this?’ We asked, ‘Can we afford not to do this?’ The answer was no.”
Phased Rollout Reduced Risk
- Starting with downtown and commercial areas proved demand and attracted funding for rural expansion.
Public-Private Partnerships Were Key
- EPB (nonprofit) + Local Governments + USDA Grants made the project financially viable.
Community Buy-In Drove Adoption
- Town halls and demo days showed residents how broadband would improve their lives.

Challenges and Solutions

Challenge	Solution
High Upfront Costs	Used long-term USDA loans and local bonds to spread out payments.
State Legal Barriers	Lobbied for policy changes to allow municipal broadband.
Skepticism from Residents	Hosted demo days and free trial periods to prove the value.
Maintenance Costs	Reinvested profits from urban subscribers to fund rural upkeep.
Low Population Density	Partnered with electric cooperatives to share infrastructure costs.

How Rural Communities Can Replicate Chattanooga’s Success

Step 1: Build Community Support

Host town halls to explain how broadband will support farms, schools, and businesses.
Demonstrate the impact with temporary Wi-Fi hotspots or success stories from other towns.

Step 2: Start with a Phased Rollout

Phase 1: Focus on schools, clinics, and commercial corridors to prove demand.
Phase 2: Expand to rural households using federal grants (e.g., USDA ReConnect).

Step 3: Form Public-Private Partnerships

Partner with:
- Local electric cooperatives (they already have poles and infrastructure).
- Nonprofit ISPs (e.g., EPB, rural electric co-ops).
- State and federal grant programs, while they are around (e.g., USDA, NTIA).

Step 4: Leverage Federal and State Funding

Apply for:
- USDA ReConnect Program (rd.usda.gov/reconnect): $1.5 billion+ has been available for rural broadband.
- NTIA Broadband Equity Program (internetforall.gov): $42.5 billion has been available for broadband expansion.
- State broadband grants (e.g., Tennessee’s Broadband Accessibility Grant).

Step 5: Treat Broadband as a Utility

Model it after water/electricity service:
- Nonprofit or municipal ownership ensures affordability and accountability.
- Reinvest profits into network expansion and maintenance.

Key Takeaways for Rural Leaders

1. Broadband Is Economic Infrastructure

Not a luxury—it’s as essential as roads, water, and electricity.
Investing in broadband = investing in jobs, farms, and healthcare.

2. Public-Private Partnerships Work

Nonprofit utilities and co-ops can build networks where private ISPs won’t.
Federal grants (USDA, NTIA) make it financially feasible.

3. Start Small, Scale Fast

Pilot in high-impact areas (schools, clinics) to prove demand and attract funding.

4. Community Buy-In Is Critical

Show, don’t just tell. Use demos, trials, and success stories to win support.

5. Policy Matters

Advocate for state/federal policy changes to allow municipal broadband.
Example: Tennessee’s 2017 law change allowed EPB to expand beyond city limits.

Expert Tips for Rural Broadband Projects

1. Use Existing Infrastructure

Electric cooperatives already have poles and rights-of-way—partner with them to reduce costs.

2. Apply for Every Grant

USDA ReConnect (rd.usda.gov/reconnect): Up to $1 million per project.
NTIA BEAD Program (internetforall.gov): $42.5 billion has been available.

3. Offer Tiered Pricing

Example: EPB’s $70/month gigabit plan is affordable for most households.
Subsidies for low-income families (e.g., Affordable Connectivity Program).

4. Train Residents to Use Broadband

Digital literacy programs ensure everyone can benefit from high-speed internet.
Example: Chattanooga’s “Tech Goes Home” program taught seniors and farmers how to use online tools.

5. Measure and Share Success

Track economic impact (jobs, farm yields, telehealth visits) to attract more funding.
Example: EPB’s annual reports highlight $50M/year in local GDP growth from broadband.

Our Conclusions and Advice

Why Chattanooga’s Model Works

It Treated Broadband as a Public Good
- EPB didn’t profit from broadband—it reinvested revenues into expansion and affordability.
It Leveraged Every Resource
- Federal loans, local bonds, and electric co-ops made the project financially sustainable.
It Proved the Economic Case
- Farms, schools, and businesses all saw measurable benefits, justifying the investment.
It Was Community-Led
- Residents, farmers, and local leaders shaped the project from the start.

Advice for Rural Communities

Start with a pilot (e.g., one school or clinic) to prove demand.
Partner with electric co-ops—they’re already in the infrastructure business.
Apply for USDA and NTIA grants—there’s been billions available for rural broadband.
Treat broadband like a utility—public or nonprofit ownership ensures long-term affordability.
Train residents to use high-speed internet—digital literacy is as important as infrastructure.

Resource Table: How to Bring Gigabit Internet to Your Rural Community

Component	Resource/Tool	Link	How to Use
Community Buy-In	USDA Rural Development Community Facilities Grants	rd.usda.gov/programs-services/community-facilities	Fund town halls, demo days, and education campaigns to build support.
	BroadbandUSA Community Toolkit	broadbandusa.ntia.doc.gov	Guides for hosting public meetings and explaining broadband benefits.
	Next Century Cities	nextcenturycities.org	Case studies and templates for community engagement.
Phased Rollout	USDA ReConnect Program	usda.gov/reconnect	Grants and loans for fiber-optic infrastructure in rural areas.
	NTIA Broadband Equity Program	internetforall.gov	$42.5 billion for broadband expansion, including rural projects.
	Rural Electric Cooperatives	nreca.coop	Partner with local co-ops to share infrastructure and costs.
Public-Private Partnerships	Electric Power Board (EPB) Model	epb.com	Example of a nonprofit utility building broadband as infrastructure.
	Institute for Local Self-Reliance	ilsr.org	Guides on municipal broadband and public-private models.
	Broadband Now	broadbandnow.com	Compare ISP options and funding opportunities.
Funding	USDA Rural Development Loans	rd.usda.gov	Low-interest loans for broadband infrastructure.
	NTIA Broadband Infrastructure Program	internetforall.gov/program/broadband-infrastructure-program	$42.45 billion for broadband deployment.
	State Broadband Offices	broadbandusa.ntia.doc.gov/state-broadband-offices	Find state-specific grants (e.g., Tennessee’s Broadband Accessibility Grant).
Technical Assistance	BroadbandUSA Technical Assistance	broadbandusa.ntia.doc.gov/technical-assistance	Free planning and engineering support for rural projects.
	Rural Broadband Association	ntca.org	Training and advocacy for rural broadband providers.
Policy and Advocacy	National League of Cities	nlc.org	Model policies for municipal broadband.
	American Public Power Association	publicpower.org	Legal and policy guides for public broadband projects.
Measurement and Impact	Broadband Speed Test (Ookla)	speedtest.net	Track broadband speeds before/after deployment.
	Economic Impact Calculator	connectednation.org	Measure jobs created, GDP growth, and telehealth usage.
Success Examples	Chattanooga EPB Case Study	epb.com/fiber-optics	Example of a municipal broadband network.
	Rural Electric Cooperatives Broadband	nreca.coop/broadband	Case studies of co-ops building fiber networks.
Zoning and Infrastructure	FCC Broadband Deployment Resources	fcc.gov/broadband-deployment	Regulatory guides for broadband deployment.
	USDA Rural Utilities Service	rd.usda.gov/programs-services/rural-utilities-service	Loans for broadband infrastructure in rural areas.

Final Thought on Chattanooga: Broadband as a Rural Lifeline

Chattanooga’s story proves that rural communities don’t have to wait for broadband—they can build it themselves. By treating internet as essential infrastructure, leveraging public-private partnerships, and starting small, towns can transform their economies, schools, and healthcare.

For rural leaders and residents:

“Broadband isn’t just about Netflix and Zoom calls. It’s about keeping farms competitive, kids in school, and clinics open. If Chattanooga can do it, so can your town—start with one fiber line, one grant, one partnership.”

Case Study 3: How Port Townsend, Washington, Built a Local Economy from the Ground Up

The Challenge: A Town Rich in Culture, Poor in Commercial Space

Port Townsend, Washington (population ~10,000), is a historic coastal town known for its arts, maritime culture, and tight-knit community. But by the early 2000s, it faced a variety of economic and community challenges that tested both its resilience and character:

The local economy was deeply affected by weak national, state, and local economic conditions.
An influx of retirees, telecommuters, and wealthier second-home owners from larger cities drove up housing costs and contributed to greater economic inequality.
A limited supply of developable land and aging infrastructure constrained growth and change.

A Solution: Local 20/20’s Community-Driven Leadership

Port Townsend didn’t wait for outside investors or corporate chains. Instead, the Local 20/20 initiative—a community-driven economic development group—has created a locally-focused approach to grow the community from within.

Theory suggested sustainability, resilience, and community interconnectedness could foster local economic development and spur private investment. This initiative translated theory into action.

Part 1: Creative Action
Goal: Foster a regenerative, sustainable, resilient, equitable, and inclusive community

Beginning in 2006, Local 20/20 has operated through an evolving network of Action Groups, which address community needs and priorities, such as:

Climate Action: Reducing greenhouse gas emissions and preparing the community for climate change through education, outreach, and direct projects.
Economic Localization: Supporting locally owned businesses and encouraging economic self-reliance so that the local economy is less vulnerable to non-local disruptions.
Neighborhood Preparedness (NPREP): Organizing residents for disaster preparedness, fostering self-reliance, and building resilience to respond to emergencies like earthquakes or power outages.
Local Food: Strengthening all aspects of local food production, access, and education to enhance food resilience and security.
Beyond Waste: Promoting waste reduction and responsible materials management, including volunteer projects like the StyroCyclers for polystyrene foam recycling.
Health and Wellness: Connecting residents with health-related resources and supporting initiatives for community wellbeing.
Transportation Lab: Advocating for sustainable, equitable transportation options while minimizing the need for personal vehicles

Leaders collaborate with Jefferson County agencies, nonprofits, and residents to support broad-based resilience and build stronger networks for emergency response, food security, and economic development.

Key Lesson:

“A decentralized, trust-based approach to grassroots resilience not only allows for rapid innovation but also meaningfully addresses underlying social and environmental challenges in a small community.”

Part 2: Local Investment Fund (2006)
Goal: Provide startup capital for businesses that banks wouldn’t fund.

Local 20/20 was key in the creation of a local investment network in Port Townsend called the Local Investing Opportunities Network (LION). The idea for LION originated from Local 20/20’s Economic Action Group, which “hatched” the now autonomous entity to help direct local capital into local businesses and community projects. LION’s mission is to build a prosperous and resilient community by encouraging local residents to invest their money within Jefferson County, Washington.

By 2024, LION members had invested nearly $14 million in 132 local entities since its inception, supporting sectors such as food and farming, tourism, small business, arts, and affordable housing. The network operates by screening investment opportunities and connecting local investors with area entrepreneurs, but each member independently decides whether or not to invest. LION was among the first organizations of its kind in the U.S. and has served as a national example for developing local investment networks in other communities

Key Lesson:

“Banks see small-town startups as too risky. We saw them as our neighbors’ futures. The fund proved that local money can grow local businesses—without Wall Street.”

Part 3: “Buy Local” Campaign (2017)
Goal: Shift spending from online retailers to Port Townsend businesses.

Process:

Loyalty Program:
- How It Works: Shoppers earn points for money spent at 100+ local businesses.
- Rewards: Points redeemable for discounts, free products, or donations to local schools.
- Promotion: Stickers in store windows, social media, and a dedicated website.
Community Challenges:
- “10% Shift” Campaign: Asked residents to shift 10% of their spending from Amazon to local stores.
- Results: $3.5 million/year redirected to Port Townsend businesses.
Business Support:
- Free marketing tools (e.g., social media templates, co-op ads).
- “Local First” directory to help shoppers find Port Townsend-made products.

Outcomes:

90% of residents now participate in the “Buy Local” program.
Local business revenue grew by 18% in 3 years.
5 new businesses opened due to increased demand (e.g., a toy store, a bookshop, a hardware co-op).

Cost:

Startup Cost: $50,000 (marketing, website, rewards system).
Funding Sources:
- $30,000 from Local 20/20’s general fund.
- $20,000 in business sponsorships.

Key Lesson:

“Amazon can’t compete with our community’s heart. The ‘Buy Local’ campaign wasn’t about guilt—it was about showing people the impact of their dollars.”

Outcomes: Since 2015–2025

Metric	2015	2025	Change
New Businesses Launched	3/year	15/year	+400%
Local Investment Fund	$0	$500K loaned	New
“Buy Local” Participation	0%	90% of residents	New
Local Business Revenue	$20M/year	$23.6M/year	+18%

Economic and Social Impact

1. New Businesses Thrive

Diverse Industries:
- Food: Sound Food, Port Townsend Seaweed.
- Crafts: Wood & Wool, Glass Beach Jewelry.
- Services: The Boiler Room (coffee), PT Hardware Co-op.

2. Jobs and Workforce Development

New Jobs created by local initatives.
Skills Training:
- 100+ residents trained in business planning, e-commerce, and food safety.
- Example: A retired boatbuilder now mentors woodworking startups.

3. Resilient Local Economy

Less Dependence on Tourism:
- Before: 60% of revenue came from seasonal tourists.
- Now: 40% from locals, reducing economic volatility.
Example: The PT Hardware Co-op stayed open year-round thanks to local support.

4. Community Pride and Connection

90% of residents say they feel more connected to local businesses (Local 20/20 Survey, 2024).
Example: The “Buy Local” loyalty program hosts monthly “Local Love” events, where businesses donate a % of sales to schools.

Lessons Learned: What Worked (and What Didn’t)

Successes

Local Leadership is Key
- A decentralized, trust-based approach to grassroots resilience allows for rapid innovation.
- Organic volunteer-driven groups keeps engagement high, projects relevant, and creativity flowing.
Local Money Grew Local Businesses
- The $500K investment fund proved that residents would bet on their neighbors.
- Repayment rate (95%) showed that small-town businesses are trustworthy.
“Buy Local” Built a Culture of Support
- The campaign wasn’t about guilt—it was about showing the impact of local spending.
- Example: A $10 shift from Amazon to a local bookstore keeps $7 in the community.

Challenges and Solutions

Challenge	Solution
High Commercial Rents	Created shared spaces (kitchen, co-working) to lower startup costs.
No Startup Capital	Launched a community loan fund with flexible terms.
Competition from Online Retailers	“Buy Local” campaign showed the human impact of shopping locally.
Lack of Business Skills	Offered free workshops on marketing, e-commerce, and financial planning.
Seasonal Economy	Helped businesses diversify revenue streams (e.g., online sales, subscriptions).

How Other Small Towns Can Replicate Port Townsend’s Success

Step 1: Create Action

Inclusive, Chaordic Organization
- Let people find their own. Avoid committees. Respond to evolving community needs.
Check out the Idea Friendly Method at SaveYour.town.

Step 2: Create a Local Investment Fund

Pool Resident Capital:
- $500–$1,000 per person can create a $100K–$500K loan fund.
Flexible Terms:
- Low interest (1–3%), long repayment periods (5–10 years).
- Prioritize businesses that create jobs or fill gaps in your town.

Step 3: Launch a “Buy Local” Campaign

Loyalty Program:
- Points for local purchases, redeemable for discounts or donations.
Marketing:
- “Shift 10%” challenge: Ask residents to move 10% of spending from chains/online to local stores.
- Social media campaigns highlighting local business stories.

Step 4: Measure and Celebrate Success

Track:
- New businesses launched.
- Jobs created.
- Revenue growth for local stores.
Share Wins:
- Annual “Local Economy Report” to show impact.
- Example: Port Townsend’s report showed $1.2M in new revenue from incubator businesses.

Step 5: Sustain the Momentum

Create a Local Economy Task Force to keep the initiative going.
Advocate for Policy Changes (e.g., invest in local businesses).

Key Takeaways for Small Towns

1. Start with What You Have

Retired business owners? Recruit them as mentors.
Residents with savings? Pool funds for a loan program.

2. Focus on Affordability and Access

Shared spaces (kitchens, offices) lower startup costs.
Flexible loans help businesses grow without debt traps.

3. Make “Buy Local” About Community, Not Guilt

Show the impact: “Spending $10 here keeps $7 in our town.”
Reward loyalty: Points, discounts, and public recognition for local supporters.

4. Train Entrepreneurs for Success

Workshops on:
- E-commerce (how to sell online).
- Marketing (social media, branding).
- Financial planning (budgeting, loans).

5. Policy Matters

Advocate for:
- Zoning changes to allow home-based businesses.
- Broadband access to support online sales and remote work.

Our Conclusions and Advice

Why Port Townsend’s Model Works

It’s Community-Led
- Residents, not outsiders, shaped the solution—ensuring buy-in and sustainability.
It Removes Barriers
- Affordable space + capital + training = more successful startups.
It Builds a Culture of Local Support
- The “Buy Local” campaign wasn’t just marketing—it reconnected residents to their economy.
It’s Replicable
- Any small town can adapt this model with local resources and creativity.

Advice for Other Small Towns

Leverage local assets: Empty buildings, retired experts, resident capital.
Measure impact: Track jobs, revenue, and participation to attract more support.
Celebrate wins: Share success stories to keep momentum going.
Policy changes: Advocate for zoning and tax policies that support local businesses.

Final Thought: Local Economies as a Community Project

Port Townsend proves that small towns don’t need Amazon or Walmart—they need a system that supports their own entrepreneurs. By combining affordable space, local capital, and a culture of mutual support, any town can build an economy that’s resilient, inclusive, and homegrown.

For local leaders and residents:

“You don’t need a million-dollar investor to revive your town. You need a shared kitchen, a loan fund, and a ‘Buy Local’ sticker. Start there—and watch what grows.”

Port Townsend Case Study Resource Table: Tools and Links to Get Started

Here’s a practical table with links, tools, and examples to implement each part of Port Townsend’s strategy in your community:

Component	Resource/Tool	Link	How to Use
Local Investment Fund	Kiva (Crowdfunding for Loans)	kiva.org	Platform for micro-loans with low interest.
	Invest Local (Balanced Economy Project)	balancedeconomy.org	Guide to setting up local investment funds.
	Local Investment Opportunities Network	lioninvestors.org	Network for local investors.
“Buy Local” Campaign	Loyalzoo (Loyalty Program)	loyalzoo.com	Free tool for points-based loyalty programs.
	American Independent Business Alliance	amiba.net	“Buy Local” campaign templates and materials.
	Shop Local Directory Template	localfirst.org	Template for an online local business directory.
Training and Mentorship	SCORE (Free Business Advice)	score.org	Free mentorship and workshops for entrepreneurs.
	Small Business Administration (SBA)	sba.gov	Free online courses and loans.
Measurement and Reporting	SurveyMonkey (Surveys)	surveymonkey.com	Measure success via customer and business surveys.
	Local Economy Impact Calculator	amicus.coop	Calculate the economic impact of local spending.
Success Examples	Port Townsend Seaweed	ptseaweed.com	Example of an incubator business.
	Sound Food (Fermented Foods)	soundfoodferments.com	Success story of a local food business.
Zoning and Policy	WA State Zoning Codes	mrsc.org	Guide to adjusting local zoning for small businesses.
	National League of Cities	nlc.org	Examples of policies for local economic development.

Residential development designed with rural zoning strategies to support walkable, small-town living

Five Steps to Turn Ideas into Action

Small towns don’t need millions of dollars or outside experts to make progress. Here’s a roadmap to get started:

1. Start with a Community Vision

Host a town hall or charrette to answer:
- What do we love about our town?
- What’s missing?
- What’s one thing we could improve in the next year?
Tools: Use sticky notes, maps, and surveys to gather input. (Example: Miro for digital collaboration.)

2. Break It Down into Steps

Turn big ideas into small, actionable projects. Example:
- Goal: Revive Main Street.
- Step 1: Offer façade grants for storefronts.
- Step 2: Host a pop-up market to test demand.
- Step 3: Build a pocket park with volunteer labor.

3. Line Up Funding and Partners

Grants: Start with small, local grants (e.g., USDA Rural Development, Main Street America).
Public-Private Partnerships: Team up with local banks, utilities, or nonprofits to share costs.
Volunteer Labor: Organize community build days (e.g., painting murals, planting trees).

4. Pilot and Learn

Test ideas before going all-in. Example:
- Pop-up shops to prove demand for local retail.
- Temporary bike lanes to gauge support for permanent infrastructure.
Measure success: Track foot traffic, sales, or participation rates.

5. Scale Up What Works

Use early wins to attract bigger funding and support.
Example: Elkhart’s façade grants led to a $1 million downtown revitalization grant.

Tools and Resources to Get Started

Goal	Tool/Resource	Link
Downtown Revival	Main Street America	mainstreet.org
Broadband	USDA ReConnect Program	usda.gov/reconnect
Local Business	Small Business Administration (SBA)	sba.gov
Grants	USDA Rural Development	rd.usda.gov
Community Engagement	National Charrette Institute	charretteinstitute.org

Key Takeaways for Small Towns

Start Small, Think Big: You don’t need a master plan—just one project to build momentum.
Leverage What You Have: Use local talent, volunteer labor, and underused spaces (e.g., empty storefronts, school gyms).
Partnerships Multiply Impact: Team up with nonprofits, utilities, and neighboring towns to share resources.
Measure and Celebrate Progress: Track jobs created, vacancies filled, or new businesses launched—and share the wins to keep morale high.
Adapt and Repeat: Use pilot projects to learn what works, then scale up.

Illustration of rural community life and planning in action—showcasing local participation, small-town development, and strategies for sustainable rural progress.

Final Thought: Development as a Community Process

In small towns, economic development isn’t about metrics or spreadsheets—it’s about people. Every sidewalk poured, business launched, or broadband line installed is a step toward a stronger, more resilient future.

For local leaders and residents:

“Don’t wait for someone else to fix your town. Start with what you have, where you are. Gather your neighbors, pick one project, and get to work. The rest will follow.”

Why Community-Driven Development Works

Praxis and Implementation for Community and Economic Development

How Small Towns Can Make It Happen: Real Examples

Case Study 1: How Elkhart, Indiana, Revived Its Main Street: A Step-by-Step Community-Led Transformation

The Challenge: A Downtown in Decline

The Solution: A Community-Driven, Phased Approach

Phase 1: Visioning Session (2017)Goal: Define what residents wanted downtown to become.

Process:

Outcome:

Phase 2: Façade Grants (2018)Goal: Improve the look of downtown to attract businesses and visitors.

Process:

Outcomes:

Cost:

Key Lesson:

Phase 3: Pop-Up Market (2019)Goal: Test demand for local vendors and create buzz around downtown.

Process:

Outcomes:

Cost:

Key Lesson:

Phase 4: Permanent Improvements (2020–2022)Goal: Make lasting physical improvements to downtown.

Process:

Outcomes:

Cost:

Funding Breakdown

Outcomes: By the Numbers (2017–2023)

Key Lessons from Elkhart

1. Start Small, Build Momentum

2. Community Engagement Is Non-Negotiable

3. Data Drives Decisions

4. Leverage Every Resource

5. Design for People, Not Just Businesses

How Small Towns Can Replicate Elkhart’s Success

Step 1: Host a Visioning Session

Step 2: Start with a Small, Visible Project

Step 3: Measure and Share Progress

Step 4: Scale Up with Permanent Improvements

Step 5: Keep the Community Involved

Expert Tips for Small Towns

1. Focus on Quick Wins

2. Use Pop-Ups to Test Ideas

3. Partner with Local Institutions

4. Make It About People, Not Just Economics

5. Document and Share Your Story

Common Pitfalls and How to Avoid Them

Conclusions and Advice

Why Elkhart’s Model Works

Advice for Small Towns

Final Thought on Elkhart: Development as a Community Process

Resource Table Case Study 1: Tools and Links to Replicate Elkhart’s Success

Case Study 2: How Chattanooga, Tennessee, Built a Broadband Network That Transformed Its Economy

The Challenge: Rural Areas Left Behind

The Solution: A Public-Private Partnership for Gigabit Internet

Step 1: Community Buy-In (2010–2011)Goal: Educate residents and businesses on the benefits of broadband.

Process:

Outcome:

Key Lesson:

Step 2: Phased Rollout (2011–2015)Goal: Build the network incrementally, starting with high-impact areas.

Process:

Challenges and Solutions:

Step 3: Public-Private Partnership (2011–Present)Goal: Leverage EPB’s nonprofit status and local partnerships to build and maintain the network.

Process:

Outcome:

Key Lesson:

Outcomes: By the Numbers (2010–2025)

Economic and Social Impact

1. Home-Based Businesses Boom

2. Precision Agriculture Transforms Farming

3. Telehealth Expands Access

4. Education and Workforce Development

Lessons Learned: What Worked (and What Didn’t)

Successes

Challenges and Solutions

How Rural Communities Can Replicate Chattanooga’s Success

Step 1: Build Community Support

Step 2: Start with a Phased Rollout

Step 3: Form Public-Private Partnerships

Step 4: Leverage Federal and State Funding

Step 5: Treat Broadband as a Utility

Key Takeaways for Rural Leaders

1. Broadband Is Economic Infrastructure

Phase 1: Visioning Session (2017)
Goal: Define what residents wanted downtown to become.

Phase 2: Façade Grants (2018)
Goal: Improve the look of downtown to attract businesses and visitors.

Phase 3: Pop-Up Market (2019)
Goal: Test demand for local vendors and create buzz around downtown.

Phase 4: Permanent Improvements (2020–2022)
Goal: Make lasting physical improvements to downtown.

Step 1: Community Buy-In (2010–2011)
Goal: Educate residents and businesses on the benefits of broadband.

Step 2: Phased Rollout (2011–2015)
Goal: Build the network incrementally, starting with high-impact areas.

Step 3: Public-Private Partnership (2011–Present)
Goal: Leverage EPB’s nonprofit status and local partnerships to build and maintain the network.

Part 1: Creative Action
Goal: Foster a regenerative, sustainable, resilient, equitable, and inclusive community

Part 2: Local Investment Fund (2006)
Goal: Provide startup capital for businesses that banks wouldn’t fund.

Part 3: “Buy Local” Campaign (2017)
Goal: Shift spending from online retailers to Port Townsend businesses.