Jennifer Strauss was attracted to Valley Junction when she moved to Des Moines five years ago. But when she decided to transform her cupcake business from a farmers market stand into a bakery, she considered opening her store in West Glen Town Center instead. She quickly realized, however, that the store would be more expensive to operate and require more time to run if located in West Glen rather than in Valley Junction.

Last week she opened Carefree Patisserie at 516 Elm St. The rent is much more affordable, she said, and because she found a location off the main road, she doesn’t feel pressured to stay open if she needs to take care of her young children.

In addition to these benefits, Strauss has found the Historic Valley Junction Foundation’s grants and services to be helpful in managing unforeseen costs and needs. The foundation may help her pay for a new store sign, will promote her business in its newsletter and has reduced the cost of trash pickup through its co-op program. Even the bank recognized her location in a Main Street Iowa district as a plus when she applied for a loan, she said.

Like Strauss, other small business owners have seen the benefit of opening or expanding their stores in Valley Junction because of the support they receive through various grants and programs.

The Historic Valley Junction Foundation offers most of its incentives through Main Street Iowa, a program administered by the Iowa Department of Economic Development that supports 37 historical districts in Iowa. The city of West Des Moines also is supportive of Valley Junction, not only because it is where the city began but also because the district attracts around 100,000 people annually, said Historic Valley Junction Foundation Executive Director Jim Miller. Its appeal to tourists makes it an important part of the city’s economy.

The area is often known as a “business incubator,” Miller said. “A lot of businesses start out and stay here and finally say, ‘I need so much space that I can’t be down here,'” he said. “We have a niche.”

Valley Junction’s appeal to businesses is illustrated by the fact that occupancy is near total capacity at approximately 150 businesses. A few years ago, the district’s capacity was at about 125 businesses, but more room has been made available by utilizing upper floors of the buildings and by expanding beyond Fifth Street, Miller said.

Still, Miller and his colleagues recognize the need to aggressively market Valley Junction as more shopping destinations are developed in Greater Des Moines.

“We’re certainly aware that other districts and neighborhoods put a lot of money on the table,” Miller said. “We want to make sure we’re doing what we can.”

Some of Valley Junction’s incentives are:

• Signage /Awning Grant Program. Since 2004, the foundation has awarded grants of up to 50 percent of the total project cost, with a $500 maximum, to businesses that replace their signs or awnings. Next year, Miller said it might expand the program to include window and door replacements.

  • City of West Des Moines Technical Assistance Program. Business owners hiring architects, engineers, planners or surveyors may be reimbursed up to $500 for those services from a $5,000 Community Betterment Grant the city received from Polk County.

  • Main Street Iowa Technical Assistance/Design Services. Merchants may bring in an architect affiliated with the Main Street program for technical assistance or design services focused on historical preservation.

  • Low-Interest Loan Program. Businesses may receive low-interest loans ranging from $5,000 to $25,000 for new building projects that maintain or improve the building’s historical integrity. The lending institution and foundation must approve the loan.

  • Marketing and advertising campaigns. The foundation promotes all businesses in the area, offers co-op services such as advertising and trash collection, and provides training and seminars. Although any business may participate in these services, foundation members receive reduced rates.

  “Whether a merchant opens a new location or business,” Miller said, “it takes so much longer and costs so much more than you expect. Having these pieces helps.”

Caren Sturm wanted to renovate the second floor of her building when she opened The Lagniappe, a gift shop, seven years ago, but was surprised by the cost of turning it into a rooftop garden and wine and coffee bar. Through the U.S. Department of Housing and Urban Development, she received a low-interest loan of $43,000 in 2004. Being in Valley Junction helped her win this competitive grant, and although she is spending about $150,000 total, the loan “really made it possible to move ahead,” she said.

Sturm also was able to use the Main Street architect to help design the project and may look into other low-interest loans. “[Main Street] has lots of extra resources at your fingertips,” she said. “You don’t have to go out and find information. It’s already tried and true through the Main Street program.”

The rooftop garden is expected to open by the end of this year, and Sturm may make more renovations in the future. “People asked if we would relocate to other parts of the city,” she said, “but we’re not leaving. It’s our home.”

The Historic Valley Junction Foundation also is focused on attracting more people as a result of a marketing analysis the Chicago-based Downtown Professionals Network completed last December. One of the study’s key recommendations for improving the economic performance of the district was to develop and implement “marketing strategies that capitalize on local assets and emerging opportunities.” The report suggested that there is an opportunity to attract more tourists visiting Des Moines, noting that 89 percent of businesses surveyed said that year-round residents are their primary customer base.

This month, the foundation unveiled a revamped Web site, new logo and television advertisement. The foundation is also looking at starting new events and expanding popular ones, such as its annual Cinco de Mayo celebration.

Besides this campaign, the foundation is continually looking for new grants and designations that would help not only businesses in the district but also the surrounding community.

Valley Junction should find out by the end of this month whether it will be one of six localities designated as Iowa’s Great Places. If it is, Valley Junction would receive part of the $3 million set aside for the six winners, which would help it fund the city of West Des Moines’ purchase of the former city hall and implement its plan to make the district a wireless Internet network.

The foundation should know by early November if it will be designated a cultural district through the Iowa Department of Cultural Affairs as well. Although that designation does not include grant money, Miller said he hopes some money will be earmarked for cultural districts in the future.

All this funding and support is not new to Valley Junction. During the floods of 1993, it received millions of dollars, said Miller. “But I think Valley Junction is very strong right now and we’re trying to do everything we can to keep it that way.”