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Eligibility metrics for legacy businesses.
All the legacy business programs surveyed in the US for this toolkit combine qualitative and quantitative metrics to determine the eligibility criteria for legacy businesses. Some, like Denver, require all eligibility metrics to be met, while others, like Long Beach, California, require meeting a certain number of metrics from a specified list. The following sections outline many of the eligibility metrics currently being used nationwide. It is essential to note that you should not limit the eligibility metrics for your program to those on this list; instead, tailor your program to meet the specific needs of your community.
Quantitative Metrics
One element of determining the eligibility of legacy businesses is through the establishment and use of quantitative metrics. Quantitative metrics can be tangible and measurable elements that qualify legacy businesses for a legacy business program. There is usually little gray area to these metrics—the business either does or does not meet them. Based on a survey of existing legacy business programs, here are the most common quantitative metrics used to define legacy business eligibility.
Age
The most used quantitative metric in determining what defines a legacy business is its age. Legacy business programs often use age to establish the deep roots of a business in a community and to set a benchmark that distinguishes long-standing legacy businesses from others. While various age metrics are used in existing legacy business programs, the age metric for your program should be established based on the specific needs of your community.
The most widely used benchmark for business age is 30 years or more in operation. This 30-year benchmark was established in 2015 by the groundbreaking San Francisco Legacy Business Program. Many subsequent programs, including San Antonio, Detroit, and Atlanta, have adopted it since. The 30-year metric enhances a business’s potential for multi-generational influence within a community.
Another commonly used benchmark for legacy businesses is 25 years. This benchmark offers more flexibility and inclusivity, while also ensuring long-term operation. Long Beach, Phoenix, and Birmingham use the 25-year benchmark.
Some programs use 20 years as their benchmark to establish a legacy business. This metric provides the flexibility needed by cities that have experienced more recent growth or undergone rapid urban change. The Los Angeles Legacy Business Program established a 20-year metric to allow more small businesses, especially those representing their BIPOC and ethnic communities, to qualify. Evanston, Illinois, also uses the 20-year benchmark.
Choosing the 20, 25, or 30-year time period for a legacy business program should reflect the minimum your team considers necessary for integration into the community fabric. Choosing one of these options will provide a practical filter for which businesses qualify for the program, but it should be based on your local economy, history, and municipal or program goals. If you are in an older city and you would like legacy businesses to be multi-generational or be examples for longevity, then the 30-year marker is a good choice. If you live in a rapidly changing city, or would like to create a more inclusive program that represents more recent immigration patterns, a 20-year (or newer) marker might be a better fit. Remember that you can add flexibility to your requirements, which should be created to represent the specific needs of your area.
Langston Boulevard Alliance | Arlington Virginia
For my work with the People & Places Project in Arlington, Virginia, our team established a 20-year benchmark for legacy businesses based on multiple community-centric reasons. The first reason is that the Langston Boulevard corridor, which the program serves, was developed, with some exceptions, after World War II, making it a modern urban area compared to other cities. The second reason was that neighborhoods along the corridor have undergone a significant transition. This is in part because many of the residents are federal employees and are transitory due to their jobs. The corridor has also seen substantial redevelopment to match the rapid growth caused by its proximity to Washington, DC. These factors helped us determine that a 20-year benchmark best represented a long-term legacy business in the area.
Case in point.
Location Continuity
Another commonly used metric to qualify legacy businesses is location continuity. This is defined in two ways; the first being continuity to a community or region and the second being to a specific location. A community continuity requirement means that the business has been operating in the same community, or, more broadly, within the same city or region. This option provides more flexibility for your program to support businesses that have moved locations but continued a community connection or provided the same services or products. Here is a requirement example from the Boston Legacy Business Support Grant: “The business must be located within the city limits of Boston. The business must have been operating in the same location (or effectively continuous presence.” Boston additionally requires a continued commitment to the community, stating that “The business must intend to continue operations in Boston after receiving designation.”
The location continuity requirement means that the business has been in operation in the same physical location over its lifespan. Programs, such as those in Birmingham and Hollywood, Florida, include thestipulation that the business must be in continuous operation at the same physical location. San Franciscoadds some flexibility to that stipulation, stating that the business must not have had more than a two-year gap in operations over its lifespan, outlining, “The business has operated in San Francisco for 30 or more years, with no break in San Francisco operations exceeding two years.”
Brick-and-Mortar/Storefront Requirement
Some programs take location continuity further, requiring a public-facing brick-and-mortar or storefront business. This requirement eliminates online-only, in-home, and warehousing businesses, ensuring that businesses in the legacy business program interact with and provide services to the community. The Detroit Legacy Business Program states its requirement this way: “The business must have a brick-and-mortar location accessible to the public (i.e., not only online or home-based).”
Independent or Local Ownership
To ensure their legacy business programs benefit community-rooted businesses, municipalities like Long Beach, Detroit, and Denver require independent ownership and do not allow chains or franchises. If this requirement fits the goals of your program, the Detroit’s Legacy Business Program provides some of the most precise requirement wording as an example: “The (legacy business) program is aimed at independently owned and operated businesses, not franchisees/franchisors. Businesses headquartered outside Detroit are ineligible.” However, you should examine the legacy businesses in your community thoroughly before enacting restrictive requirements like this. You would not want to rule out a franchise or chain that started in your community or played a significant role in its history or culture.
Size
Some legacy business programs limit the number of employees a qualifying business can employ, aiming to serve only small businesses. As an example, Birmingham, Alabama’s legacy business program defines qualifying businesses as “typically fewer than 20 employees,” along with being in continuous operation in the city for 25 years, contributing to the historic and cultural fabric of Birmingham, and being committed to maintaining culinary, art, and/or craft heritages that “braid the history and progression of Birmingham.”
Good Standing with Local or State Government
Many of the legacy business programs, including those in Atlanta, Boston, Denver, Detroit, Los Angeles, and San Francisco, have metrics regarding compliance with local and sometimes state obligations for a business to be eligible for their program. Good standing refers to obligations such as state or local business registrations and licenses, compliance with tax requirements, the absence of outstanding local fees or fines, and the resolution of any code enforcement or permitting issues. This good-standing metric is often associated with grant funding or other financial or in-kind benefits related to the legacy business program. In this case, it makes sense that those running the programs want businesses receiving the benefit to be in good standing. If a local government runs your program or your program plans to offer financial benefits, consider this metric. However, if you are trying to create an equitable and inclusive program, keep in mind that this metric may impose limitations on businesses that are significant to your communities but struggle to maintain good standing. In this case, consider including assistance to these struggling businesses as part of your program to help them regain good standing.
Legacy business, El Carrito Restaurant in the Barrio Logan neighborhood of San Diego, CA. Photo credit: Bennett King.
Qualitative Metrics
Qualitative metrics refer to intangible and non-measurable criteria used to determine if a business is eligible as a legacy business. These qualitative metrics tend to focus on historical, cultural heritage, or community contributions or significance. These types of metrics help government entities or civic organizations planning legacy business programs collect community input to determine what makes a business significant or meaningful to a neighborhood, even if it does not meet all the quantitative metrics.
Using qualitative metrics is especially important in BIPOC and ethnic communities, as an outsider’s interpretation of legacy businesses based solely on quantitative metrics could overlook a business that holds deep cultural significance for the community. An example of this could be a Mahjong parlor or club in a Chinese American community. Although it may not meet all the quantitative metrics of a legacy business, it contributes to the community's cultural heritage by providing a space for socializing and preserving tradition.
Be sure to consider the significance of these qualitative metrics to your community as you create your own legacy business program. Also, be sure to include your community in the creation of your specific metrics; they will best understand how to define metrics for cultural and historical contributions. Let’s look at some of the more common qualitative metrics in use by programs today.
Big Idea
Intangible Cultural Heritage
Several legacy business programs explore concepts related to intangible cultural heritage within the context of legacy businesses. For example, DC Preservation’s Legacy Businesses Report describes one of the key functions of legacy business programs as preserving intangible cultural heritage. Another variation comes from SF Heritage, the creators of what became the San Francisco Legacy Business Program, who describe legacy businesses as “imbued with intangible cultural significance.” The concept of intangible cultural heritage originates from UNESCO (the United Nations Educational, Scientific, and Cultural Organization) as a means to emphasize that cultural heritage encompasses not only physical (tangible) objects, such as buildings and monuments, but also intangible aspects, including traditions, knowledge, arts, social practices, and craftsmanship. UNESCO states that it is essential to preserve intangible cultural heritage (in conjunction with tangible) because it embodies knowledge and skills that are passed down from one generation to the next, which can be economically and socially valuable, especially in minority communities. To put this in perspective, legacy businesses are integrated into intangible cultural heritage because they serve as the physical conduit through which community knowledge, social and cultural practices, and even craftsmanship are retained and passed on to the next generation.
Contribution to the Culture of a Community
Cultural contribution is the most common qualitative metric in use by legacy business programs. Adding this eligibility requirement confirms that the business contributes more to the community than just providing commercial goods or services. Instead, it is integrated into the intangible cultural heritage of the community by acting as a cultural or social hub, retaining and reflecting local traditions and knowledge, or passing on arts, crafts, or skills. The Denver Legacy Business Program cultural contribution metric is phrased this way: “(the business) cultivates tradition, neighborhood culture and/or contributes to a sense of history” and “prioritizes social impact and engages the local community.” Eligibility for this metric can be evaluated through oral histories, archival research, historical documentation, contributed narratives, customer or community affidavits, or evidence of cultural continuity in the practice of cuisine, crafts, art, etc.
Contribution to the History of a Community
The historic contribution metric focuses on the business’s longevity and any ties to significant dates, events, or time periods in the city. Additionally, it can denote an association with historical figures. This metric is often used in conjunction with cultural contribution. For example, the Long Beach Legacy Business Program lists “Contribute to a sense of history in the surrounding neighborhood” along with “Support the neighborhood’s cultural life, diversity, or identity.” Eligibility for this metric can be evaluated through oral histories, archival research, historical documentation, or contributed narratives that depict the business's history.
Contributing to the Character or Identity of the Community
Some businesses just seem to belong in a community; they help define its character, feel, or identity. It could be the language of their signage, the paint scheme of the building, cultural identifiers or affordances in the window, or an offering or service specific to the surrounding community. Think of the bodegas of Spanish Harlem in New York City, or the ornate restaurants and noodle shops of San Francisco’s Chinatown. The character or identity contribution metric refers to these types of businesses. Both Los Angeles and San Francisco include this metric in their programs to retain businesses that help to define communities, especially within their BIPOC and ethnic communities. Each program requires that a business contribute to the “history and identity of the neighborhood.”
Big Idea
Cultural Affordance
A cultural affordance is a culturally recognizable cue or feature related to a community's shared practices, symbols, patterns, or religion. Cultural affordances enable people to understand, interact with, or make sense of their surroundings in ways that feel intuitive within that culture. An example from Barrio Logan in San Diego is the painting of the parking meter poles in front of businesses in the colors of the Mexican flag, denoting the commercial district of the traditionally Hispanic neighborhood.
Culturally Relevant Goods or Services
This metric is not as commonly used as historic or cultural contribution. Still, if you are creating a legacy business program that will encompass BIPOC and ethnic communities, you may want to consider adding it to your program. Culturally relevant goods and services serve particular needs in these communities, such as products or services not offered elsewhere, traditional art, music, crafts, or cuisine, and bilingual services. Retaining these types of businesses is essential for preserving the community's character and sense of place; without them, the community's cultural and social fabric may erode.
There are a few examples of this metric available in existing programs. National Trust for Historic Preservation’s Preserve Route 66 Legacy Business Grant Fund defines a legacy business as one that “provides a locally or regionally distinctive service, product, or craft. Additionally, the Los Angeles Legacy Business Program outlines one metric for defining a legacy business as “(a business that) provides vital goods and services in a language and manner that is culturally accessible to the community.”
Legacy business, MacPherson Opticians in Arlington, VA. Photo credit: Cindy Kane Photography
Less Commonly Used Metrics
Economic Contribution to a Community
Economic contribution to a community as a metric is not commonly used; when it is, it is often employed alongside other metrics. For example, the Evanston, Illinois legacy business program uses the legacy business qualifier “demonstrated a significant historic, economic, cultural, or social contribution to a population or community, neighborhood, or the city.” Determining the economic contribution of a legacy business can be difficult. Detailed records on tax contributions or employment numbers can be unreliable for businesses that have been in operation for an extended period. The metric may also be biased or unfair, excluding smaller mom-and-pop businesses that may not have high revenues but contribute significantly in other ways, or those unable to keep detailed financial records.
Architectural Significance or Continuity
This eligibility metric is explicitly tied to preserving businesses with significant architecture, design, or style that relate to their community. This metric may be appropriate if your program has similar goals or is working toward historic designation. Keep in mind, however, that added steps and effort are usually required of the business or property owner for preservation programs, such as historic designation. This can create challenges for building or business owners who may not have the time, resources, or interest to be part of the designation process. To create a more inclusive process, consider creating a preservation outreach program or providing additional resources to bring along as many businesses as possible.
Three legacy business programs in the US use architectural significance as a metric for eligibility. San Marcos, Texas, and San Antonio, Texas, include the metric in reference to historic preservation initiatives specific to their cities. San Marcos allows businesses to be eligible if they are of cultural, historical, or architectural significance. Additionally, it gives eligibility preference to businesses with a property that is eligible (and has a willing owner) to be registered as a local landmark or be part of a designated historic district. The San Antonio Legacy Business Program is run by the city’s Office of Historic Preservation. It has limited eligibility to businesses within the city’s World Heritage Buffer Zone or within a two-mile radius of designated local landmarks. The Long Beach Legacy Business Program takes a more flexible approach by making architectural significance one of the optional metrics under which a legacy business can qualify.