Chesterfield Valley Awakening Continues
St. Louis Small Business Monthly
May 2009
by Jeremy Nulik
"The Awakening," a 100-foot sculpture of a giant emerging from the earth, was created in 1980 by J. Seward Johnson in Maryland. Five separate aluminum pieces depict a bearded man struggling to free himself out of the ground.
Recently, a second "The Awakening" was commissioned by Louis Sachs, chairman of Sachs Properties, to be displayed this October at the Chesterfield Village.
Sachs' personal awakening, however, happened long before the statue was purchased. It was over 30 years ago that Sachs unveiled his vision for Chesterfield, which is still on display on the 6th floor of the Merrill Lynch building. He pictured a vibrant and thriving business community with walkable streets, recreation, restaurants and office space. Vision would have been (I think you should say 'was necessary' since he actually had a vision) necessary, since, at the time, Chesterfield Valley was still called gumbo flats, named after the silty Missouri River bottom soil that becomes gumbo mud or gravel when wet.
Today, Sachs' vision is now becoming the reality for the Valley. Business expansion has mushroomed. Prior to the 1993 flood, there were 240 businesses in Chesterfield Valley. As of March 2009, there are more than 830 businesses. And the growth continues despite an economic recession. Much like the "The Awakening," the giant of business in Chesterfield Valley has been rising up from the gumbo flats and continues to thrive.
Four Chesterfield business leaders: Joan Schmelig, president of the Chesterfield Chamber of Commerce; Libbey Malberg, assistant city administrator for community services and economic development for the City of Chesterfield; Chris Kelleher, attorney with The Law Firm For Business and Greg Kintz, owner of AMG Corporate Offices, gathered at Kaldi's Coffeehouse to eat cookies, drink iced coffee and discuss what makes Chesterfield a community ripe for growing a business and what the valley adds to the rest of the St. Louis region.
What is the largest change that you have seen in the Chesterfield Valley since the floods in 1993?
Schmelig‑It's the development. You've got every restaurant you can think of and shopping, dining or hospitality. This has made Chesterfield a convenient location to live and do business.
Kelleher‑Back in 1996, I built a house in Chesterfield, and there wasn't even a Domino's Pizza. When I had to buy trash cans for our house, I had to drive to Manchester and find a Lowe's. There was nothing in the valley, and it's just amazing now. With all the development, it's easy to live here and that makes it easy to work here.
To what do you attribute the big blossoming of business?
Malberg‑The TIF had a lot to do with the rapid growth in business. It paid for the infrastructure that would allow the growth to happen, because without the water, sewer systems and levee protection, you don't get anything else. So those things had to come first. That's what attracted THF Realty and other developers.
Kelleher‑I think there's pre-Walmart and post-Walmart effect too, because once Walmart is in, you can get loans for other retailers. If Walmart puts their complex in, then it must be okay.
(Everybody gives in to their resistance to the cookies)
What support systems or organizations are out here for Chesterfield business owners to grow their business?
Schmelig‑Of course, I have a very strong feeling about the Chamber, but there are a lot of other people out here too. There is a strong connection between the city and the chamber. All I've got to do is call Libbey and tell her that I've got somebody in the office who needs help, and she's right there. So having good communication between the city and the biggest business organization is what really helps.
Kintz‑I belong to several chambers, and Chesterfield Chamber is the best for me. She wouldn't say this, but Joanie is the key to making it so successful. She really gets everybody involved in helping businesses.
Malberg‑At the city we try to make it kind of one stop for business services too. The people at the front desk are trained to answer business questions, and we have a Planner of the Day program where there's always a planner available, so you know somebody can always answer your question right there.
What are the most common mistakes you see business owners make?
Schmelig‑They don't understand their marketing or what their market position is. If there are already 35 companies with a certain service in the area, you don't want to put up another one. I have seen so many small businesses close up because they have made poor choices with location and market research.
Kelleher‑I agree that it is the marketing aspect that they make the biggest mistakes on. Business owners get sold on their business and, in the beginning, everything seems so wonderful. It does not work that way all the time. They get tripped up when they don't meet their sales goals. They don't know where their customers come from, and then typically they will throw money away in exactly the wrong places for their marketing.
Kintz‑I'm an ex-banker...usually the mistake is lack of money and lack of capital. Most people start on a shoestring. They should have some money or some relationships with bankers. They can't make it through a downturn like this one if they don't have some access to capital.
How should they avoid these mistakes?
Malberg‑Take advantage of help. There are so many free services out there through SBA (U.S. Small Business Administration), SCORE, the Chesterfield Chamber and the city. We can help business owners find solutions and get the resources they need.
Kintz‑There is also an incubator here through St. Louis County Economic Development. That is a huge resource that people don't even know about unfortunately.
Schmelig‑We have a leadership program where people are learning the hard parts to small business ownership. The city has an Incubator Plus program. It goes through how to start and run a business. Owners need to take advantage of the resources that are out there. I always tell them to get advice from their attorney or accountant. Get someone on board that can help you go through your financials and create a solid business plan.
What are the next things that are going to happen to stimulate more business growth in Chesterfield?
Schmelig‑We are continuing to get the western end of the valley developed, and we will also get the final closures for the levee which is part of the stimulus package.
Malberg‑Also, we are building a downtown Chesterfield just west of the Chesterfield Mall. It is part of Louis Sachs vision. He assembled 1500 acres back in the 70s and built the mall. One of the final pieces is a downtown area that is connected to the parks and trails. The first phase is underway and the first office building has been built. We will be starting late summer for retail and restaurant buildings. Then there will be a second office building in the spring of next year.
How has the recession affected business in Chesterfield?
Schmelig‑There are some local businesses that have gone away. They had a lack of funding, and they did not understand their market position. You can only get a certain number of a certain type of business before the market is saturated.
Malberg‑We have felt the effects on a much smaller scale than most other communities, though. Both parks and capital sales tax revenues are up compared to March of last year. We are between .3 to 3% higher than last year on point-of-sale sales tax revenues.
Kelleher‑If you track national sales tax revenue, it is ugly. The fact that Chesterfield is up year after year is phenomenal. Most of my clients are not in Chesterfield, but the city and the chamber have made it easy to be a business person in Chesterfield. With all the developments going in, why would I ever want to move?
Kintz‑(laughing) Your rent is going up, Chris.
Since it is such a strong place for business, what is the contribution that Chesterfield makes to the rest of the St. Louis region?
Malberg‑Job creation. That is why we wanted the Metro buses to continue to run here. We have so many good jobs that people ride the bus from Illinois to get here year after year. We are an employment center for the region.
