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HomeMy WebLinkAbout8-28-23RICHARD WARREN, PRESIDENT DANNY EARP, BOARD MEMBER BRENT McCAULLEY, COUNCILPERSON JOHN BLAKEMORE, BOARD MEMBER AMANDA GERRISH, BOARD MEMBER NANCY OJEDA, VICE-PRESIDENT CHUCK ENGELKEN, COUNCILPERSON CITY OF LA PORTE DEVELOPMENT CORPORATION BOARD OF DIRECTORS MEETING AGENDA Notice is hereby given of a meeting of the City of La Porte Development Corporation Board of Directors to be held on August 28, 2023, at the City Hall Council Chamber, 604 West Fairmont Parkway, La Porte, Texas, beginning at 5:00 p.m., to consider the following items of business: Remote participation is available. Attend via a screen using this link: https://us02web.zoom.us/j/89074198975?pwd=VDY3d2MvUzVvZEpCNzY3dUkzZ2lZdz09. Join by phone at 888-475-4499 or 877-853-5257. The meeting ID is 890 7419 8975 and the passcode is 413530. 1.CALL TO ORDER 2.CITIZEN COMMENT (G enerally limited to five minutes per person; in accordance with state law, the time may be reduced if there is a high number of speakers or other considerations.) 3.AUTHORIZATIONS (a)Presentation, discussion, and possible action to approve the minutes of the July 24, 2023, meeting of the La Porte Development Corporation Board of Directors. [Richard W arren, President] (b)Presentation, discussion, and possible action to approve the La Porte Development Corporation’s proposed 2023-24 Fiscal Year budget. [Matt Daeumer, Assistant City Manager] 4.SET NEXT MEETING 5.BOARD COMMENTS Hear announcements concerning matters appearing on the agenda; items of community interest; and/or inquiries of staff regarding specific factual information or existing policy from the Committee members and City staff, for which no formal action will be discussed or taken. 6.ADJOURN If, during the course of the meeting and discussion of any items covered by this notice, the La Porte Development Corporation Board determines that a Closed or Executive Session of the Board is required, then such closed meeting will be held as authorized by Texas Government Code, Chapter 551, Section 551.071 - consultation with counsel on legal matters; Section 551.072 - deliberation regarding purchase, exchange, lease or value of real property; Section 551.073 - deliberation regarding a prospective gift; Section 551.074 - personnel matters regarding the appointment, employment, evaluation, reassignment, duties, discipline, or dismissal of a public officer or employee; Section 551.076 - implementation of security personnel or devices; Section 551.087 - deliberation regarding economic development negotiation; Section 551.089 - deliberation regarding security devices or security audits, and/or other matters as authorized under the Texas Government Code. If a Closed or Executive Session is held in accordance with the Texas G overnment Code as set out above, the La Porte Development Corporation Board will reconvene in Open Session in order to take action, if necessary, on the items addressed during Executive Session. Persons with disabilities who plan to attend this meeting and who may need auxiliary aids or services are requested to contact the City Secretary's office (281-470-5019), two working days prior to the meeting for appropriate arrangements. Pursuant to Texas Government Code Sec. 551.127, on a regular, non-emergency basis, members may attend and participate in the meeting remotely by video conference. Should that occur, a quorum of the members will be physically present at the location noted above on this agenda. CERTIFICATE I, L ee W oodward, City Secretary, do hereby certify that a copy of the August 28, 2023, La Porte Development Corporation B oard agenda was posted on the C ity Hall bulletin board, a place convenient and readily accessible to the general public at all tim es, and to the City's website, www.LaPorteT X.gov, in com pliance with Chapter 551, Texas Government Code. DATE OF POSTING TIME OF POSTING TAKEN DOW N Lee Woodward Lee W oodward, City Secretary Page 1 of 2 July 24, 2023, La Porte Development Corporation Board of Directors Minutes RICHARD WARREN PRESIDENT BRENT MCCAULLEY COUNCILPERSON AMANDA GERRISH BOARD MEMBER CHUCK ENGELKEN COUNCILPERSON DANNY EARP BOARD MEMBER JOHN BLAKEMORE BOARD MEMBER NANCY OJEDA VICE-PRESIDENT MINUTES OF THE LA PORTE DEVELOPMENT CORPORATION BOARD OF DIRECTORS MEETING OF JULY 24, 2023 The City of La Porte Development Corporation Board met on Monday, July 24, 2023, at the City Hall Council Chambers, 604 West Fairmont Parkway, La Porte, Texas, at 4:30 p.m., with the following in attendance: Board members present: Richard Warren, Danny Earp, John Blakemore, Brent McCaulley, Amanda Gerrish Board members attending remotely: None Board members absent: Chuck Engelken, Nancy Ojeda Council-appointed members present: Corby Alexander, City Manager; Sharon Harris, Deputy City Secretary; Clark Askins, City Attorney CALL TO ORDER – President Warren called the meeting to order at 4:32 p.m. 2. CITIZEN COMMENT (Generally limited to five minutes per person; in accordance with state law, the time may be reduced if there is a high number of speakers or other considerations.) There were no comments. 3. AUTHORIZATIONS a. Approve the minutes of the June 26, 2023, meeting of the La Porte Development Corporation Board of Directors. [Richard Warren, President] Member McCaulley moved to approve the minutes of the June 26, 2023, regular meeting of the La Porte Development Corporation Board of Directors; the motion was seconded by Member Blakemore; the motion was adopted, 5-0. b. Presentation, discussion, and possible action to approve publishing a notice to begin the 60-day comment period in order to amend th e Fairmont Dog Park Project (Capital Improvement Project PR0021) and Recreation Center Expansion Phase I Project (Capital Improvement Project PR008), by transferring an amount not to exceed $142,931.00 from the Fairmont Dog Park Project fund to the Recreation Center Expansion Phase I Project fund. [Matt Daeumer, Assistant City Manager] Member Earp moved to approve publishing a notice to begin the 60-day comment period in order to amend the Fairmont Dog Park Project (Capital Improvement Project PR0021) and Recreation Center Expansion Phase I Project (Capital Improvement Project PR008), by transferring an amount not to exceed $142,931.00 from the Fairmont Dog Park Project fund to the Recreation Center Expansion Phase I Project fund; the motion was seconded by Member McCaulley; the motion was adopted, 5-0. Page 2 of 2 July 24, 2023, La Porte Development Corporation Board of Directors Minutes c. Presentation, discussion, and possible action to approve the La Porte Development Corporation’s proposed 2023-24 Fiscal Year budget. [Matt Daeumer, Assistant City Manager] Assistant City Manager Daeumer presented the proposed budget. Member McCaulley moved to approve the La Porte Development Corporation’s proposed 2023-24 Fiscal Year budget; the motion was seconded by Member Earp; the motion was adopted, 5-0. d. Presentation, discussion, and interview with an applicant for the open Economic Development Manager position. [Matt Daeumer, Assistant City Manager] This item was pulled from the agenda. 4. SET NEXT MEETING August 28, 2023, was set as a tentative date for the next meeting of the Board. 5. BOARD COMMENTS Hear announcements concerning matters appearing on the agenda; items of community interest; and/or inquiries of staff regarding specific factual information or existing policy from the Committee members and City staff, for which no formal action will be discussed or taken. There were no comments. ADJOURN – The meeting was adjourned without objection at 4:56 p.m. ___________________________________ Sharon Harris, Deputy City Secretary REQUEST FOR LA PORTE DEVELOPMENT CORPORATION BOARD AGENDA ITEM Agenda Date Requested: July 24, 2023 Requested By: Matt Daeumer, Asst. City Mgr. Department: Administration/CMO Report Resolution Ordinance Exhibits: Proposed FY 2023-24 Budget, The Retail Coach Proposal SUMMARY The La Porte Development Corporation fiscal year 2023-24 proposed budget has been reviewed by the City Manager’s Office and Finance. The expenditure budget for next fiscal year has been prepared with a $1,232,744 (32%) increase from the current fiscal year budget. This is due to increased transfers to the CIP Fund than the previous years and a larger allocation for mid-year opportunities that may or may not materialize. Generally, the EDC Fund transfers funds to the Debt Service Fund annually in the amount of $750,000 to $1 million. This year’s Debt Service transfer will be $588,000. In FY 2025-26, this transfer will decrease to approximately $150,500 to service debt payments. The LPDC is comprised of 1.25 full-time equivalent employees (0.75 is the Economic Development Coordinator and 0.50 is the Senior Administrative Assistant). The Economic Development Coordinator position has been vacant for over a year; however, the Assistant City Manager has been taking on this position’s daily operations. The City is in the process of interviewing a candidate for this position, and staff is hopeful to have this vacancy filled soon. Staff has budgeted for continuation of the membership in vital key organizations within the Houston area such as Bay Area Houston Economic Partnership (BAHEP) and Economic Alliance as well as the International Center for Shopping Centers (ICSC) and the Texas City Manager’s Association. Generally, the Economic Development Coordinator attends the Texas Municipal League (TML) and TCMA conferences as well as the Texas Economic Development Cou ncil (TEDC) conference. City Council has approved the continuation of the Harris County Transit services provided to residents in La Porte, which is funded by LPDC. Staff has included funding for mid-year advertising opportunities as well as funds to attend “trade shows’ such as the Red River & ICSC conferences. As discussed previously with the Board, staff has included funding for any mid-year incentive opportunities. The La Porte City Council had a pre-budget retreat earlier this year and asked for staff to move forward with a list of several quality-of-life amenities. Additionally, during the Appropriation Source of Funds: 038 – EDC Account Number: Various Amount Budgeted: N/A Amount Requested: Budgeted Item: Yes No budget preparation, staff noted several other quality-of-life amenities that can be grouped together with these projects. A Total of $3,675,000 quality of life amenity projects are being requested to be funded by the Board for FY 2023-24: • Recreation Center Parking Lot Project - $450,000 • Inclusive Playground Project - $400,000 • Main Street Alley Paving Project - $425,000 • Wave Pool Enhancements - $700,000 • Recreation Center Phase II Construction (year 1 of 2) - $1,500,000 • Monarch Park Restroom Project - $200,000 Staff has provided the Board with the FY 2023-24 Proposed Budget documents, which highlight the LPDC’s healthy proposed fund balance at the end of September 30, 2024, to be nearly $7.2 million. The City’s Finance Department has been working diligently to project conservative revenues and feels comfortable in the proposed $3,611,321 revenue projections, which includes sales tax and interest income. Additionally, staff has provided a line-item detail of expenditures for the Board to review for personnel services, supplies, and services & charges. The LPDC passed the proposed budget on July 24, 2023. Since then, City Council has added a 3% cost of living adjustment for all employees, which is an i ncrease in $4,300.00 for this budget. Staff has also received the attached proposal for Retail Recruitment and Development Services with an increase of $33,000.00 to this budget for Professional Services. Staff will give a presentation on the Retail Coach for the Board. The La Porte City Council is scheduled to vote on the FY 2023-24 budget at the September 11th City Council meeting. Staff is requesting the Board approve the proposed FY 2023-24 budget for the La Porte Development Corporation. ACTION REQUIRED BY LPDC BOARD Presentation, discussion, and possible action to approve the La Porte Development Corporation’s proposed 2023-24 Fiscal Year budget. Approved for the La Porte Development Corporation Board meeting agenda. Corby D. Alexander, City Manager Date Beginning Fund Balance 9/30/22 8,314,938$ Plus Estimated 22-23 Revenues 3,742,070 Less Estimated 22-23 Expenditures and Commitments Economic Development Operations 205,945 Debt Payments 785,255 Capital Projects/Transfers 2,425,000 Total Expenditures 3,416,200 Estimated Fund Balance 9/30/23 8,640,808 Plus 23-24 Revenues: 1/2 Cent Sales Tax 3,375,000 Interest Income 236,321 Total Revenues 3,611,321 Equals Total Resources 12,252,129 Less 23-24 Expenditures: Economic Development Operations 842,256 Debt Service Transfer 588,000 Transfer to General CIP Fund: Fitness Center Parking Lot 450,000 Inclusive Playground 400,000 Rec Center Phase II 1,500,000 Main Street Alleys 425,000 Wave Pool Enhancements 700,000 Monarch Park Restroom 200,000 Total Expenditures 5,105,256 Ending Fund Balance 9/30/24 7,146,873$ Estimated Projected 2022-23 2023-24 Revenues 3,742,070$ 3,611,321$ Expenditures & Commitments 3,416,200 5,105,256 Revenues over Expenditures 325,870$ (1,493,935)$ La Porte Development Corporation (038) Fund Summary (Section 4B Sales Tax) City of La Porte City of La Porte La Porte Development Corporation Fund (038) Statement of Revenues Actual Budget Revised Projected Object Description 2021-22 2022-23 2022-23 2023-24 Charges for Services: 403.02-00 1/2 Cent Sales Tax 3,791,256$ 3,250,000$ 3,500,000$ 3,375,000$ Charges for Services Subtotal 3,791,256 3,250,000 3,500,000 3,375,000 Interest: 483.01-00 Interest Income 5,124 4,000 242,070 236,321 Interest Subtotal 5,124 4,000 242,070 236,321 Total La Porte Development Corp Fund Revenues 3,796,379$ 3,254,000$ 3,742,070$ 3,611,321$ Economic Development Corporation Fiscal Year 2023-24 Economic Development Operations Expenditure Summary Actual Actual Budget Estimated Requested Percent 2021-22 2021-22 2022-23 2022-23 2023-24 Change Personal Services 34,991$ 34,141$ 112,202$ 58,420$ 155,686$ 38.75% Supplies 34 351 300 - 2,599 766.33% Services & Charges 1,126,963 2,710,207 3,760,010 3,357,780 4,946,971 31.57% Division Total 1,161,988$ 2,744,699$ 3,872,512$ 3,416,200$ 5,105,256$ 31.83% Scope of Services Summary Personnel Position Roster Approved Approved Approved 2021-22 2022-23 2023-24 Economic Development Manager 0.75 0.75 0.75 Department Coordinator 0.50 0.50 0.50 Total 1.25 1.25 1.25 The Economic Development Division works with the Economic Development Corporation Board to establish direction and polices related to economic development projects in the City. The Department and its activities are funded through the collection of a 1/2 cent sales tax, which must be spent on economic development projects related to capital investment, quality of life,recreation, and/or primary job creation. Past activities have included the re-nourishment of Sylvan Beach, the ball fields at Pecan Park, the Community Library, construction of Canada Road, Construction of Bay Area Blvd., the Sports Complex, and infrastructure improvements on Main Street. We will continue to work with our regional economic development partners on business retention and expansion programs, small business development, marketing efforts, workforce initiatives, transportation issues and quality of life issues. The Economic Development Coordinator will also serve as the Business Ombudsman for the City of La Porte, assisting new and existing businesses through the planning and zoning processes. City of La Porte, Texas Economic Development Corporation 038-6030-565 Detail of Expenditures Actual Budget Estimated Requested 2021-22 2022-23 2022-23 2023-24 Personal Services: 1010 Regular Earnings 16,157$ 78,396$ 35,000$ 112,000$ 1035 Longevity 28 36 36 73 1060 FICA 968 6,001 2,680 8,574 1065 Retirement 1,905 12,769 5,704 20,039 1067 PARS Retirement 83 - - - 1080 Insurance - Medical 15,000 15,000 15,000 15,000 Personal Services Subtotal 34,141 112,202 58,420 155,686 Supplies: 2001 Office Supplies - 200 - 200 2002 Postage 40 100 - 100 2015 Other Supplies 311 - - - 2093 Computer & Equipment - - - 2,299 Supplies Subtotal 351 300 - 2,599 Services & Charges: 3001 Memberships & Subscriptions 62,500 41,055 40,525 41,055 3020 Training/Seminars 277 7,200 4,500 7,200 4060 Technology Lease Fees 647 500 500 916 5001 Accounting 5,000 5,000 5,000 5,000 5007 Other Professional Services - 88,153 72,000 105,000 6002 Printing & Reproduction - 500 - 500 6005 Advertising - 10,000 - 10,000 6040 Trade Shows - 10,000 - 10,000 9997 Special Programs 72,000 387,347 25,000 504,300 9004 Adm Transfer to Fund 004 778,752 785,255 785,255 588,000 9015 Adm Transfer to Fund 015 1,791,031 2,425,000 2,425,000 3,675,000 Services & Charges Subtotal 2,710,207 3,760,010 3,357,780 4,946,971 Division Total 2,744,699$ 3,872,512$ 3,416,200$ 5,105,256$ City of La Porte, Texas Economic Development Corporation 038-6030-565 Detail of Expenditure Actual Actual Actual Actual Budget Estimated Requested 2018-19 2019-20 2020-21 2021-22 2022-23 2022-23 Notes - Revised Estimate 2023-24 Notes - Departmental Request Personal Services: 1010 Regular Earnings 71,734$ 65,453$ 16,439$ 16,157$ 78,396$ 35,000$ YTD $21,575.25 - projection $29,523.68 w/ vacant position 112,000$ Increase request - $108K salary 1020 Overtime 160 - - - - - - 1035 Longevity 166 322 180 28 36 36 73 1060 FICA 5,391 5,015 1,078 968 6,001 2,680 Formula 8,574 1065 Retirement 11,605 10,713 2,250 1,905 12,769 5,704 Formula 20,039 1067 PARS Retirement - 174 44 83 - - - 1080 Insurance - Medical 12,000 15,000 15,000 15,000 15,000 15,000 15,000 Personal Services Subtotal 101,056 96,677 34,991 34,141 112,202 58,420 155,685 Supplies: 2001 Office Supplies - 9 - - 200 - Have not had Economic Development Manager this FY 200 2002 Postage 1 - 34 40 100 - Have not had Economic Development Manager this FY 100 2015 Other Supplies 705 457 - 311 - - - 2093 Computer & Equipment - - - - - - 2,299 Manager cell phone $1,100, Manager iPad $1,199 Supplies Subtotal 706 466 34 351 300 - 2,599 Services & Charges: 3001 Memberships & Subscriptions 20,759 63,261 20,000 62,500 41,055 40,525 41,055 BAHEP $20,000; Economic Alliance $20,000; TEDC Membership (E. D. Manager) $525; Associate TCMA Dues (E.D. Manager) $130; ICSC Dues (Manager and 3 Board Members) $400 3020 Training/Seminars 5,131 3,851 - 277 7,200 4,500 7,200 TEDC Conference $1,500; TML ED Conference $1,000; Webinars $200; Mileage $1,500; Community Development Institute $3,000 4060 Technology Lease Fees - 602 625 647 500 500 916 5001 Accounting 5,000 5,000 5,000 5,000 5,000 5,000 5,000 Annual Audit 5003 Legal 31 - - - - - - 5007 Other Professional Services 75,000 79,500 79,500 - 88,153 72,000 CivicPlusRec is paid out of Parks Admin, not EDC; it was double budgeted 105,000 Harris County Transit Authority Bus Agreement Added $33,000 per ACM for Retail Coach - 08/18 6002 Printing & Reproduction - - - - 500 - Have not had Economic Development Manager this FY 500 Business cards and pamphlets 6005 Advertising 5,460 4,345 9,638 - 10,000 - Have not had Economic Development Manager this FY 10,000 6040 Trade Shows 343 95 - - 10,000 - Have not had Economic Development Manager this FY 10,000 9997 Special Programs 124,846 - 45,200 72,000 387,347 25,000 Only one incentive agreement to be paid out Increased by $10K - CMR 504,300 Mid-Year Opportunities $250,000; Public Art $50,000. Merit - $3,000 - Removed - CMR $200,000 added for Mid-Year Opportunities - ACM 07/17 Added $4,300 for 3% COLA - Removed to match adopted - Added back 08/189004Adm Transfer to Fund 004 1,033,362 1,004,822 - 778,752 785,255 785,255 588,000 9015 Adm Transfer to Fund 015 1,835,700 1,292,950 967,000 1,791,031 2,425,000 2,425,000 3,675,000 Fitness Center Parking Lot $950,000 (Reduced to $450K 06/30 - ACM); Inclusive Playground $400,000; Northside Wall $550,000 (Removed 6/30 - ACM); Main Street Alleys $425,000; Wave Pool Enhancements $500,000; Monarch Park Restroom $200,000 Rec Center Phase I -$200,000 Added 06/30 - ACM Rec Center Phase II - $1,500,000 Added 06/30 - ACM Removed Rec Center Phase I - $200,000 - CIP Meeting 07/07 Increased Wave Pool Enhancements by $200,000 - CIP Meeting 07/07 Services & Charges Subtotal 3,105,632 2,454,426 1,126,963 2,710,207 3,760,010 3,357,780 4,946,971 Division Total 3,207,394$ 2,551,569$ 1,161,988$ 2,744,699$ 3,872,512$ 3,416,200$ 5,105,256$ TheRetailCoach.net | Austin, TX | (800) 851-0962 Retail Recruitment & Development Strategy Proposal for: The City of La Porte, Texas Submitted by: July 6, 2023 2 Executive Summary Company Profile Who We Are Experience Retail Recruitment Success Our Team Your Project Team Key Personnel Bios Process & Scope of Work Scope of Work & Deliverables Our Approach: Retail:360® Pricing 3 4-9 4 5 6 7 8 9 10-24 10 11 25 RETAIL RECRUITMENT & DEVELOPMENT STRATEGY Co ntents 3 • Research and analyze the La Porte retail market to identify retail gaps and growth opportunities. •Determine La Porte's unique, viable retail market potential. •Identify key retail and restaurant targets that align with the City's vision for growth. •Recruit targeted retailers and restaurants through proactive outreach efforts and retail conference representation. • Act as an extension of City staff to provide recruitment services and coaching for retail economic development initiatives. EXECUTIVE SUMMARY Bringing the Right Retail Mix to La Porte The Retail Coach is submitting this proposal for Retail Market Analysis & Recruitment Services for La Porte. Our goal is not only to aid the City in preparing and executing a Retail Market Analysis and comprehensive Recruitment Strategy, but to also assist the City in its efforts to capture sales tax leakage and further improve quality of life for residents by bringing in new retail, restaurant, entertainment, and service options. The most important aspect of any Retail Market Analysis is its ultimate application and resulting impacts. Our approach has always been action-oriented to ensure that market reports are not placed on a shelf to collect dust. Working with all project team members, local stakeholders, and public officials is a critical component in which The Retail Coach is experienced and well-equipped to execute. Goals & Objectives: 4 $600 Million IN SALES TAX GENERATED Our work has generated more than $600 Million in sales tax for our client communities in the past 5 years. 90% REPEAT CLIENT RATE 90% of our clients choose to continue working with us after the initial contract. 6 Million + SQUARE FEET OF NEW RETAIL RECRUITED We have recruited more than 6 million square feet of new retail to client commu- nities in the past 5 years. COMPANY PROF I LE: WHO WE ARE We Recruit Retail. For more than 23 years, The Retail Coach has been the premier national retail recruitment partner for municipalities, economic development organizations, and development firms. We are the nation's leading retail recruitment, market analysis, and development firm. Our approach combines strategy, technology, and creative marketing to execute high-impact retail recruitment strategies for local governments, chambers of commerce, and economic development organizations. Having worked more than 650 assignments in more than 40 states, our recruitment approach is simple - do what you say you are going to do, do it at the highest level possible, and constantly communicate findings and results to our clients. This approach has proven successful, leading to multiple assignments with more than 90% of our clients. PROVE N SUCCES S FOR CLI ENT COMMUN I T I ES 5 National Expertise. Local Focus. Our work throughout the country allows our team to stay current on retail trends and deepen our relationships with national and regional brands. These relationships create unique opportunities for our client communities. When brands begin planning to expand into new markets, we are often one of the first to know and retailers/brokers will often look to our client list or ask our team for prospective markets to consider. Communities Served 650+ 40 We Have Served More than 650 Client Communities Across 40 states. 90% TX ME CA OR WA UT WY CO NM OK KS NE SD IA WI MI OH PA MD MA DE NY KY TN NC SC GAALMS FL VA IL IN MO AR LA AZ COMPANY PROFILE: EXPERIENCE States We've Worked In Repeat Client Rate 6 COMPANY PROF I LE: SUCCESSES More Than 6 Million SF of N ew Retail Recruited in the Last 5 Years Our proven Retail:360® Process has been instrumental in recruiting new retailers and developers to our client communities. RECENT RECRU ITMENT S UCCESSES PLUS HUNDREDS MORE THROUGHOUT THE COUNTRY 7 What Makes Us Different? We are Consultants. Not Brokers. We pride ourselves on being consultants, not brokers. We only do what is in the best interest of our client communities and their future growth. We don't take shortcuts or go with the path of least resistance to fill retail spaces. RECOGNIZED AS LEADING INDUSTRY EXPERTS AND FEATURED PRESENTERS FOR: Our Team is Your Team We take a partnership approach and become an extension of your team. Our clients are invited to participate in the recruitment process, allowing you to learn and expand your network. Full Transparency We track recruitment activity and prospect feedback in your custom retail recruitment dashboard and host monthly calls with your team to keep you updated on progress. Experienced & Connected We pioneered the retail recruitment industry more than 20 years ago and leverage more than two decades of experience and relationships to help drive retail growth in your community. 8 Your Project Team LEADERSHIP & PROJECT STRATEGY OUR TEAM With more than 50 combined years of retail development experience, Kelly and Aaron play an integral role in every project for The Retail Coach. This includes in-depth market analyses, recruitment strategies, and development plans for our clients. Cary and Caroline manage our relationships with national and regional retailers, brokers, site selectors, and developers. They execute our recruitment process, including the site submission process and capturing retailer feedback. Kelly Cofer Founder & CEO Aaron Farmer President RETAILER RECRUITMENT Cary Everitt Recruitment Specialist Caroline Harrellson Recruitment Specialist Matthew uses cutting-edge, GPS-based market data to pinpoint true opportunity in retail markets. He provides the latest retail trade area data and prepares our clients' market reports, data sets, and assists with GIS mapping. DATA & MARKET RESEARCH Matthew Lautensack Director of Research & Development Nancy and Rylee support all projects by managing client invoicing and contract needs as well as marketing, promotional, and graphic design support. Nancy Dees Director of Finance Rylee Lefever Marketing Manager ADMINISTRATIVE SUPPORT PROJECT LEAD 9 Aaron Farmer | President Aaron manages all of The Retail Coach’s projects in [State] and will be the primary point of contact for this project. Aaron Farmer brings to The Retail Coach knowledge of the most current research on retail and marketing trends. Prior to joining The Retail Coach, Mr. Farmer was employed in marketing research and retail development where he worked on projects for some of America’s leading retailers and restaurants including FedEx, Kinkos, Sally Beauty Supply, Adidas, Concentra and the National American Association of Subway Franchises. His expertise touches each step of a project from the initial trade area determination to the actual recruitment of retailers. Mr. Farmer holds a degree in Marketing from The Mays Business School at Texas A&M University and an MBA from Texas A&M University – Commerce. BIOS - KEY PROJECT PERSONNEL Kelly Cofer | Founder & CEO C. Kelly Cofer leads The Retail Coach with more than 30 years of experience in all aspects of retail real estate and economic development. Kelly’s professional background encompasses market research and site selection, advisory and leasing services, and property brokerage and development for leading national retailers and restaurants in more than 150 cities throughout the United States. He has earned the prestigious Certified Commercial Investment Member (CCIM) designation from the Chicago-based Commercial Investment Real Estate Institute and attended the Economic Development Institute at the University of Oklahoma. Kelly holds a Bachelor of Science degree from Texas A&M University in College Station. Cary Everitt | Retail Recruitment Specialist Cary manages The Retail Coach’s relationships with retailers, site selectors, and key decision makers for retailers, restaurants, hotels, and developers. He works with your Project Director to ensure that we are presenting the best information possible when recruiting for client communities and follows up with prospects to make sure that your community is staying at the top of mind as brands look for new markets. Mr. Everitt works throughout projects to provide monthly updates on recruitment activity and communicates feedback received throughout the process. 10 Scope of Work & Deliverables 1: Retail Market Analysis •Competing Communities Analysis • Custom Retail Trade Area Map •Retail Trade Area Demographic Profile •Retail Trade Area Psychographic Profile •City Demographic Profile •Discussions with Key Community and Business Stakeholders PROPOSAL: RETAIL MARKET ANALYSIS & RECRUITMENT 5: Marketing & Branding • Retail Market Profile • Customized Retailer Feasibility Packages •Developer Opportunity Package •Online Retail Dashboard (Retail:360® Website) • Interactive Site Mapping 2: Determining Retail Opportunities •Retail Demand Analysis •Retail Void Analyses for Key Vacancies and Available Retail Sites 6: Recruitment of Retailers & Developers •Retail Recruitment Plan •Retailer & Developer Recruitment Status Dashboard •Monthly Recruitment Updates from Retail Coach Project Team 3: Site Marketing • Retail Site Profiles for Available Retail Sites 4: Identifying Retailers & Developers for Recruitment • Target List of Retailers and Restaurants with Contact Information • Target List of Developers with Contact Information 7: Ongoing Recruitment & Coaching •Ongoing Coaching and Support from The Retail Coach Team •Representation of the City at Regional and National Retail Industry Events 11 Our Retail:360® Process identifies strengths, weaknesses, opportunities, and threats to your community's ability to attract retail and highlights your community’s advantage over competing cities. Through our multi-phase approach to recruiting new retailers, we are able to help communities build a long-term retail economic development plan. Market-Based Solutions We understand that every client community has its own unique set of development needs. That's why we work with our clients to determine those needs and offer custom, tailored, data-driven solutions. On-The-Ground Analysis Just as each client has their own set of needs, we know that each client has a unique position in the marketplace as it competes to recruit new retailers. We spend time in your community with leaders and stakeholders, which enables us to determine your market position and identify retailers that fit your community. Action Plan for Growth We analyze, recommend, and execute aggressive strategies for pursuing the ideal retailers, as well as coaching our clients through the recruitment and development process. This partnership typically produces best results when, together, we derive short-term and long-term strategies based on market data and opportunities. OUR APPROACH: RETAI L:360® Retail Recruitment is a Process, Not an Event. Through our proprietary Retail:360® Process, we offer a dynamic system of products and services that enable communities to expand their retail base and generate additional sales tax revenue. 12 RETAI L:360®: MARKET ANALYS IS Understanding the La Porte Market Through High Impact Mobile Data Analysis We will perform extensive market research and analysis to evaluate the area and the La Porte retail market. Understanding your true customer base is critical to quantifying the demand for new retail and restaurant development. We use real data collected from actual customers in your community to analyze trade area boundaries, competitive markets, and leakage. This high confidence data allows our team to tell your community's story and show potential investors why they need to be in your market. Kelly Cofer Retail Coach Founder & CEO If you aren't currently leveraging consumer mobile data, you are drastically underselling your retail market and opportunity. Proposal: Retail Market Analysis & Recruitment Services 13 Competing Community Analysis A community must have a clear understanding of the competitive nature of retail recruitment. We will look at competing communities to identify a competitive advantage via economic and market forces that have a direct impact on retail recruitment and development in La Porte. Identification of Ancillary Issues Impacting Retail We will work with the City to identify other root-cause issues of the local economy, and include recommendations for the City to improve opportunities. Custom Retail Trade Area Analysis The Retail Trade Area is the geographical area from which the community’s retailers derive a majority of their business. It is the foundational piece of the retail plan and its accuracy is critical. We utilize retail trade area data when communicating with retailers and developers to ensure that the community fully leverages the amount of shoppers coming into the community. We will hand draw Retail Trade Areas for La Porte based on cell phone/GPS data from shoppers as well as on-the-ground analysis from The Retail Coach Team. RETAI L:360®: D E LIVERABLESRetail Market Analysis Mobile Data for Location Decisions: We will utilize mobile location technology that analyzes retail location and behavioral data collected from mobile devices to determine consumer visits to La Porte. This high-confidence data is used to verify Retail Trade Areas and validate retail site selection decisions. 14 RETAI L:360®: D E LIVERABLESRetail Market Analysis Demographic Profiling A community must be able to instantaneously provide information and data sets sought by retailers during the site selection and site evaluation process. The data must be accurate, current, and readily available. Our demographic profiles include population and projected population growth, ethnicities, average and median household incomes, median age, households and household growth, and educational attainment. We will create comprehensive 2020 Census, 2023, and 2028 Demographic Profiles for the Retail Trade Area and La Porte. Psychographic Profiling As retail site selection has evolved from an art to a science, psychographic lifestyle segmentation has become an essential element of retailers’ preferred location criteria. Understanding a consumer’s propensity to purchase certain retail goods and services—as well as specific retail brands—is valuable to national, regional, and independent retailers. Knowing the retail sectors and products that consumers demand removes a great deal of risk for an independent business. Based on the market segmentation system developed by ESRI, we will develop a Tapestry Segmentation Profile of the households in the Retail Trade Area. This is done by using the most advanced socioeconomic and demographic data to measure consumer attitudes, values, lifestyles, and purchasing behaviors to understand the sectors and brands of retailers that may be of interest. 15 RETAI L:360®: D E LIVERABLESRetail Market Analysis Stakeholder Discussions Buy-in from key community leaders and stakeholders is crucial to the retail plan. Our belief is that, "if they are not in on it and up on it - they will be down on it." One of our first meetings will be with independent businesses who may see our work as threatening. Our goal is not only to obtain buy-in, but to assist in finding prospects for available spaces and help fill vacancies. We will work to obtain plan buy-in from public and private stakeholders through a series of group and individual meetings. Stakeholders may include City Staff and representatives, community leaders, real estate brokers, retail developers, property owners, and owners of independent businesses. 16 Retail Demand Analysis A community is able to quantify its retail demand through a Retail Demand Analysis, which provides a summary of the primary projected retail demand growth — or opportunities — for 68 retail sectors. The analysis is ultimately used to identify recruitment targets for the community. The Retail Demand Analysis will: - Identify retail demand growth opportunities for more than 68 retail sectors - Distinguish retail sectors with the highest prospect for success and qualify their potential We will determine the level of retail demand for the designated Retail Trade Area and use projected demand to help identify opportunity areas and prioritize market segments for recruitment. RETAI L:360®: D E LIVERABLESDetermining Retail Opportunities 17 RETAI L:360®: D E LIVERABLES Site Marketing Retail Site Profile A critical step in attracting retail is providing accurate and current information on each identified vacancy and site. We will create a Retail Site Profile for each identified vacancy and site with current site- specific information, including: •Location •Aerial Photography •Site Plan •Demographic Profile •Property Size & Dimensions •Traffic Counts •Appropriate Contact Information 18 RETAI L:360®: D E LIVERABLESIdentifying Retailers & Developers for Recruitment Identifying Potential Developers Much of our recruitment success comes from establishing a network of regional and national retail developers over the past 23 years. Developer networking and recruitment have become key components in a community’s retail recruitment and development/redevelopment success. If a higher-tier retailer were to express interest in a community, and there was not sufficient ready-to-lease properties matching their needs and brand requirements, a developer must be identified to build the interested retailer a suitable property. We will use our network to identify retail real estate developers active in La Porte and the region for recruitment. We will also work with City Staff to contact and build relationships with developers active in the region. Identifying Potential Retailers The Retail Coach will target national and regional retail brands that are a good “fit” for the community. This means that the Retail Trade Area population, disposable incomes, consumer spending habits, and education levels meet the retailers’ ideal location criteria. We will develop and review a master list of potential retailers with La Porte staff and work together to prepare a final target list of retailers for recruitment. This list will include retailers from our analysis as well as new retail/restaurant concepts or regional retailers and restaurants that may be a good fit for the community. 19 RETAI L:360®: D E LIVERABLESMarketing & Branding Retailer-Specific Feasibility Packages Unlike the more general Retail Market Profile, a Retailer Feasibility Package is developed to send specifically to the real estate department or broker for individual retailers. We will create retailer-specific feasibility packages to address essential location criteria. These feasibility packages will include: •Community Overview & Demographic Profile •Retail Site Profiles •Location Map •Retail Trade Area Map •Existing Retailer Map •Retail Location Map •Retail Trade Area Demographic & Psychographic Profiles •Retail Trade Area Demand Analysis Summary •Area Traffic Generators •Appropriate Logo and Contact Information Retail Market Profile To attract targeted retailers, the most critical step is to provide accurate and current community data and site-specific information on available vacancies and sites. It is important that this marketing information positively reflects the community’s attributes and brand to corporate site selectors, real estate brokers, and developers, because it is essential in making initial decisions about locating in the community. We will develop a Retail Market Profile tailored to the specific needs of targeted retailers’ essential site selection and location criteria for La Porte. The profile serves as a community introduction, and includes: •Retail Trade Area Map •Location Map •Traffic Count Map •Demographic Profile Summary •Appropriate Logo and Contact Information 20 RETAI L:360®: D E LIVERABLESMarketing & Branding Online Retail Dashboard Being able to quickly and easily access and share retail opportunity information greatly increases a community’s opportunity for success. To assist with this, we develop a custom online retail dashboard that can be accessed online anytime through a branded Retail:360® link. We will create a Retail:360® Retail Dashboard for La Porte which will be available for visual presentation and easy downloading of all data sets and marketing information. With a few clicks, retailers, brokers and developers can learn about your community’s retail potential like never before. Developer Opportunity Package Our team creates a Developer Opportunity Package to send specifically to retail developers active in the community and/or region to spark their interest in retail opportunities. We will create a Developer Opportunity Package to highlight opportunities in La Porte. 21 RETAI L:360®: D E LIVERABLES Marketing & Branding Interactive Site Mapping Retail site selectors do much of their research while in hotel rooms and in airports, so a visual GIS platform that streamlines data and sites into one interactive and centralized location is a powerful tool. We will develop a concise, easy-to-access, interactive site mapping platform for La Porte along with the preloaded prime vacancies and development/redevelopment sites that we will be marketing. Data can be presented by demographic, socioeconomic, psychographic, and retail spending layers that are detailed down to the block level, to meet the needs of each individual user — whether they be a retailer, developer, or even a local entrepreneur. 22 RETAI L:360®: D E LIVERABLESRecruiting Retailers & Developers Recruitment of Developers Much of our recruitment success comes from having established a network of national retail developers over the past 23 years. Oftentimes, a retailer may have interest in a community, only to find that suitable “for lease” properties do not exist. We will actively recruit developers on La Porte's behalf. Our developer recruitment process includes: 1.Introductory emails and opportunity packages are sent to developers 2.Personal phone calls are placed to measure interest level 3.Personal emails are sent to inform developers of the status of interested retailers, and any significant market changes 4.A developer status report is provided with each developer's complete contact information and comments resulting from recruitment activities Recruitment of Retailers The Retail Coach is the first national retail recruitment firm to introduce retailer and developer recruitment specifically for communities. Twenty years and 650 projects later, the recruitment of retailers remains one of the primary metrics of success. Today, our experience has proven that a community must move beyond just gathering data sets, and proactively recruit retail. We will actively recruit retailers and restaurants on La Porte's behalf: 1.Introductory emails and retail market profile are sent to each targeted retailer 2.Personal phone calls are placed to measure interest level 3.Personal emails and retailer feasibility packages are sent to each targeted retailer 4.Personal emails and retail site profiles for prime vacancies are sent to the appropriate targeted retailers 5.Personal emails are sent to inform targeted retailers of significant market changes 6.Personal emails are sent to decision markers once per quarter to continue seeking responses regarding their interest level in the community 7.A retailer status report is provided with each retailer’s complete contact information and comments resulting from recruitment activities 23 RETAI L:360®: D E LIVERABLESRecruiting Retailers & Developers Retail Recruitment Dashboard As part of our recruitment process, we provide access to a real-time recruitment dashboard where City staff can see which retailers are being recruited, the latest touch points with each, and contacts we are actively communicating with along with their interest level in the community. Once recruitment has begun, we will set up a recurring monthly meeting with staff to review ongoing recruitment activity, feedback received from prospects, and any additional next steps or follow up items needed to advance recruitment with interested retailers. Retail Conferences We help communities connect with retailers and developers at retail conferences such as the annual ICSC Recon Conference and other regional events. We will assist in marketing La Porte's vacancies and sites, to retailers, developers, and brokers at retail industry conferences. 24 RETAI L:360®: D E LIVERABLES Ongoing Retail Coaching Retail Coaching We partner with communities on a long-term basis and are available when clients have questions, new ideas, or need access to GIS mapping and current data statistics. We are also available if clients need to brainstorm opportunities as the community grows and develops. We will provide ongoing coaching and support for retail recruitment activities for La Porte. 25 PROJECT PRICING $32,000 Work Fees: The total fee for completion of this work is $32,000 payable in (3) three installments: • $10,000 upon execution of contract; • $12,000 in 90 days. • $10,000 on 180 days. Work fees are payable within 30 days of receiving invoice. Plus up to $1,000 in reimbursable expenses. Not to Exceed Price: $33,000 Includes: •12 Month Partnership • Analyzing the La Porte Retail Market •Determining Retail Opportunities •Site Marketing •Identifying Retailers & Developers for Recruitment • Marketing & Branding • Actively Recruiting Retailers & Developers • Ongoing Retail Recruitment & Coaching Optional Contract Extension: If La Porte elects to extend the agreement, the additional fee shall be $25,000 for each additional 12 month period of data updates, recruitment, and coaching. Retail Recruitment & Development Strategy Reimbursable Project Expenses: It is estimated that reimbursable expenses will not exceed $1,000. Reimbursable expenses include: 1. All travel costs; 2. Cost of special renderings and maps, if any; 3. Cost of copies for reports and maps/drawings; and 4. Cost of shipping expenses, if any Project expenses are payable within 30 days of receiving expense invoice.