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HomeMy WebLinkAbout04-05-10 Regular Meeting of the La Porte Development Corporation Board of Directors 2 MINUTES OF THE REGULAR MEETING OF THE LA PORTE DEVELOPMENT CORPORATION BOARD OF DIRECTORS April 5, 2010 1. Call to order President Pat Muston called the La Porte Development Corporation Board meeting to order at 5:03 p.m. Members Present: Muston, Woodard, Clausen, Warren, Pizzitola and Engelken Council member Zemanek attended the meeting and sat in the audience. Members/Officers Absent: Moser Staff Present: City Manager Ron Bottoms, Assistant City Attorney Clark Askins, City Secretary Martha Gillett, Finance Director Michael Dolby and Main Street/Economic Development Coordinator Stacey Osborne. Others Present: Mr. and Mrs. Chuck Rosa and Kathryn Aguilar 2. Consider approval or other action of the March 1, 2010 minutes of the Regular Meeting of the La Porte Development Corporation Board of Directors - M. Gillett A motion was made by Board Member Engelken to approve the March 1, 2010 minutes of the Regular Meeting of the La Porte Development Corporation Board of Directors. Motion was seconded by Board Member Clausen. The motion carried. Ayes: Muston, Woodard, Clausen, Warren, Pizzitola and Engelken Nays: None Abstain: None Absent: Moser 3. Presentation: EDC Project Examples- S. Osborne Stacey Osborne provided a presentation of EDC Project Examples 4. Receive updates on activities with Economic Development Partners - S. Osborne Stacey Osborne reported on the following activities with the Economic Development Partners Bay Area Houston Convention & Visitors Bureau Bay Area Houston Economic Partnership Economic Alliance Houston Port Region La Porte-Bayshore Chamber of Commerce 5. Receive updates from City Staff on current EDC projects - S. Osborne Stacey Osborne provided updates on current EDC projects Town Plaza Grand Opening Economic Incentives Sylvan Beach Shoreline Project 912 West Main/Gateway Main Street Activities 6. Executive Session - pursuant to provision of the Open Meetings Law. Chapter 551 Texas Government Code, Sections 551-071 through 551.076, 551.087 (consultation with attorney, deliberation regarding real property, deliberation regarding prospective gift or donation, personnel matters, deliberation regarding security devices, or excluding a witness during examination of another witness in an investigation, deliberation regarding Economic Development Negotiations). A. 551.072 (Consultation regarding purchase, exchange, lease or value of real property) Meet with City Manager and City Attorney to discuss property on Main Street B. 551.072 (Consultation regarding purchase, exchange, lease or value of real property) Meet with City Manager and City Attorney to discuss property behind 117 San Jacinto (Alamo Building) C. 551.087 (Economic Development Negotiations) Meet with City Manager and City Attorney to discuss property at 117 San Jacinto (Alamo Building) Board members retired to Executive Session at 5:25 p.m. Board members adjourned the Executive Session and returned to the table at 6:30 p.m. 7. Consider action in connection with La Porte Development Corporation Board lease of 117 San Jacinto building. Motion was made by Board Member Warren to terminate the lease for 117 San Jacinto. A second was made by Board Member Pizzitola. The motion carried unanimously. .. Ayes: Muston, Pizzitola, Clausen, Engelken, Woodard and Warren Nays: None Abstain: None Absent: Moser 8. Board member comments A. Matter appearing on agenda B. Inquiry of staff regarding specific factual information or existing policy 9. Adjournment There being no further business to discuss, the La Porte Development Corporation Board of Directors adjourned the Regular Meeting at 6:31 p.m. Resp~;:Z~ Martha Gillett City Secretary TRMC Passed and approved on lhistlf1;;ay of ~ 2010. presidentr---- 3 REQUEST FOR LA PORTE ECONOMIC DEVELOPMENT CORPORATION AGENDA ITEM Agenda Date Requested: 6/7/10 Requested By: Stacey Osborne Department: CMO Report: _ Resolution: Aoorooriation Source of Funds: SOURCE Account Number: 038-6030-565-50.07 Ordinance: Amount Budgeted: $20,000 Amount Requested: Budgeted Item: m NO Exhibits: Proposal from Buxton Company Exhibits: Proposal from Retail Coach Exhibits: SUMMARY & RECOMMENDATION In the 2009 Economic Development Strategic Plan, retail was identified as a major focus of our economic development efforts. There are several companies that provide retail analyses that can be used to attract retail to areas that are currently under-served. We did budget for such a study this year, but we have not yet pursued it. This evening I would like to discuss the possibility of moving forward with a retail analysis study, and to get your thoughts and guidance on whether or not a study is warranted and, if so, whether this is the right time to pursue it. I would also like to tell you about two companies that have submitted proposals for consideration. Buxton Company did a retail analysis study for the City of La Porte in 2006 that showed the City's retail potential and gave recommendations for attracting retail to the area. Since the study was done, there have been numerous changes, both in the overall economy and in the types of technologies available to cities and retail brokers. We have since spoken with Buxton, and they have proposed to update the study they did before, providing Internet access to what was previously available only as a hard copy, and providing additional services that they did not have available when they did the original study. Buxton has been recommended by other cities in our area. The Retail Coach submitted a proposal early last year, which we used as a basis for our budget. The Retail Coach claims that their services are better and more accurate than the Buxton Study, and they also have been recommended by other cities in the area. oration: , (, /to Ron Bottoms, City Manager date Bu~ on. IDentifying Customers" City of La Porte, TX CommunityID Refresh Prepared by: Chas Stoker Expiration Date: April 30, 2010 April S, 2010 Copyright @ Buxton Company, 2010. All Rights Reserved. _~w"",.,.'*,""!!,,",,,,,,,=_",""""''''''''''''''"''-'~'''''''''''''''''M'i;;'<'''''"~'W"'~''''''';.''''''''''''''''''''''_='~'>~--=~~...~,<,>-.___"_.,"'''''''''''''_"""~~~,,,,,,',~:,,,,.""~.:~w,:,,:,:,,,,,',,",,_~,,,,,,",",,,,,,_=,,,,_,,>,,,,,.""-"$''''''.M':'~'..'.'<"".,"'.'''''~''''"_,,,,,y~~'''~'''.,,'.;,,,,.,.;''.'.,.',.;..,.:.....O.".,.".,.'_...'.'.'.NC,.'.'...).#..""","_^'" Bu~\.. on~ IDentifying Customers" La Porte, TX: Community ID Refresh INDEX I. SUMMARY II. INTRODUCTION TO BUXTON III. NEEDS/CHALLENGES IV. GOALS/DESIRED RESULTS V. PROCEDURES/SCOPE OF WORK VI. PROJECT TEAM VII. PROJECT REQUIREMENTS VIII. FEES FOR SERVICES IX. SIGNATURE PAGE X. ENDORSEMENTS/REFERENCES 1 Bu~[on~ IDentifying Customers' La Porte, TX: Community ID Refresh I. SUMMARY Community ID is a proven retail development strategy that can be immediately implemented by La Porte. Buxton integrated proprietary technical capabilities with more than 500 cumulative years experience in retail management and local economic development to create Community ID. This unique strategy has brought both innovation and a disciplined approach to municipal retail development efforts. During the 60 business days it takes to complete Community ID, civic leaders are actively involved in the process and make important decisions that guide the direction and results. The four main phase s of the process are: Researching and Verifying La Porte's Retail Trade Area This phase starts with the in -depth collection of the same location variables that Buxton uses to qualify locations for retail clients. Because of Buxton's unique capabilities, we can translate this retail-specific information into market intelligence that community leaders need to attract and grow their retail sectors. Evaluating La Porte's Retail Potential The evaluation phase will clarify what makes La Porte distinctive and valuable from a retailer's viewpoint. Through daily involvement in retail location analysis, Buxton has acquired the unmatched ability to evaluate a community's retail potential. Matching Retailers and Restaurant s to La Porte's Market Potential The consumer profile of La Porte's trade area will be matched against the customer profiles of over 5,000 retailers and restaurants in Buxton's proprietary database. The final match list is developed with the input of community leaders so that it reflects the needs and desires of the residents. Delivering La Porte's Marketing Packages Individual marketing (pursuit) packages for each retailer match are delivered electronically via SCOUT. Our exclusive online marketing system, SCOUT helps you to showcase your city in the best light. It gives you the ability to create presentations and quality documents and to share information in the match reports. With Community ID, La Porte can unleash its full retail potential, seize new retail opportunities and expand exis ting businesses. 2 Bu~~ on~ IDentifying Customers' La Porte, TX: CommunityID Refresh II. INTRODUCTION TO BUXTON Since our founding in 1994, Buxton has been a leading force in retail location and development. We are recognized for creating solutions that provide results. Buxton began as a service to help retailers make informed site selection decisions by understanding their customers and precisely determining their markets. Buxton leaders soon realized that the company's expertise in retail location and market analysis could also be leveraged to benefit communities desir ing retail expansion. Please note that in this proposal the term "retail" is inclusive of all retail concepts. Community ID Designed specifically for use in community economic development programs, Buxton's Community ID process has assisted more than 450 public sector clients nationwide, resulting in the development of more than 20 million square feet of retail space. We integrate our impressive technical capabilities with more than 500 cumulative years of retail management and local economic development experience to help municipalities achieve their retail goals. More than simply providing data, Community ID supplies custom marketing materials and strategies targeting the unique location requirements of retailers, developers and commercial real estate bro kers. Community ID clients achieve outstanding success using our tools for retail identification, selection and recruitment. And our clients benefit from our unique understanding of retail site selection from the retailer's point of view. The combination of technical expertise and professional guidance gives municipalities the capa city to immediately implement an effective retail development program. Benefits of Community ID With Community ID you have immediate access to: · Retail Industry Expertise. Gain a competitive position by working with professionals who have years of retail management experience plus current insights into your community and site selection processes and trends. · Community Development Best Practices. Expand and sharpen your retail development focus by incorporating best practices discovered by Buxton through daily work with municipalities across the nation. 3 Buxton~ IDentifying Customers- La Porte, TX: Community ID Refresh . Proprietary Systems. Gather useful information by having Buxton's technology specialists analyze your trade area accessing data st ored on Buxton's in-house databases. . Personalized Content. Advance your retail recruitment program by receiving personal guidance from our staff and ongoing insight into key industry topics via our monthly e -newsletter, webcasts and other interactive tools. . Long-Term Partnership. As a Buxton client and partner you have unlimited access to our staff to help optimize your marketing efforts at the International Council of Shopping Centers (ICSe) annual meeting in Las Vegas, NV. Additionally a Buxton represen tative will be available for on-going calls and emails related to your retail needs. . Marketing Data and Tools. Enhance your marketing messages and presentations by using SCOUT, Buxton's online trade area database and marketing tool, available to you for one year after project delivery_ 4 Bu~ on@ IDentifying Customers' La Porte, TX: Community ID Refresh III. NEEDS/CHALLENGES La Porte wants to understand and then capitalize on the retail development opportunities. As communities increasingly compete for retail dollars, attracting the attention of retailers has become more challenging than ever. Marketing your community plays a dominant role in today's competitive economy. The challenge for the community is to attract retailers and developers by providing trade area information that is complete, accurate and up -to-date. U sing our proprietary methodologies, Buxton will collect and analyze your community's trade area information and give it to you in a format that is easy -to- use and appealing to real estate executives and developers. The best information, however, is use less without a plan for using it. Much more than data collection, Community ID is an execution strategy that can help you build or revitalize your existing marketing and economic development program. With Community ID, you will be prepared to: . Achieve your retail potential by establishing a long -term partnership with Buxton · Integrate retail development into yo ur economic development program · Increase your success by preparing La Porte to meet the needs of retailers · Effectively position your community by Ie veraging your locations' strengths and minimizing weaknesses . Convey La Porte's advantages over competitors' advantages · Establish credibility with retail decision makers · Maximize time and resources by not pursuing unqualified prospects · Win the confidence and trust of prospects by understanding their priorities · Use competitive analysis to close the sale 5 Bu}(ton<< IDentifying Customers' La Porte, TX: Community ID Refresh IV. GOALS AND DESIRED RESULTS The primary goal of Community ID is to prepare La Porte to successfully expand its retail sector. Community ID serves as the framework for developing a sustainable marketing program that not only achieves short -term goals but also endures to ensure the economic viability of the retail sector over the long -term. Such a marketing program will bring the following desired resul ts: . Residents' desires to shop and dine at home will be fulfilled . Retail leakage will be minimized . Tax revenues (property and sale/use taxes) will increase . Employment opportunities will grow . La Porte's ability to capture other economic opportunities will be enhanced 6 Bu ~ton~ IDentifying Customers' La Porte, TX: Community ID Refresh v. PROCEDURES/SCOPE OF WORK Once you have engaged Buxton to work with you in developing Community ID, a project team will be assigned to guide you through the entire process - from initial data collection to final presentation of the resul ts. This team consists of: . Client services manager, who will serve as your primary source of communication during the project . Geographic Information System specialist, who will analyze your trade areas and create customized maps and reports . Professionals with backgrounds as retail executives and economic development practitioners, who will address your unique challenges and help maximize La Porte's retail opportunities Staff Visits During visits to the community, Buxton's staff is able to make clear an d candid assessments of the community's strengths, weaknesses and potential. Our daily involvement with over 1,900 retail and restaurant clients in finding optimal locations keeps us current on retail location trends. This provides a rational and analytical basis for helping La Porte decide how to best focus resources on the most promising retail opportunities. Data Collection Buxton uses over 250 consumer and business databases that are updated throughout the year, and in some cases, every month. Altho ugh it is possible to obtain these databases for less expense on a community or regional basis, Buxton buys and is licensed to use the complete U.s. datasets. With this information Buxton will compare La Porte's potential location to the universe of all retail locations operating in the u.s. The following are some of the more well-known sources used in our studies, but there are dozens more that we employ to provide additional insight: . Experian . Simmons . InfoUSA · National Research Bureau · Navteq Geographic Data · Dunn & Bradstreet Business Data 7 Buxton<< IDentifying Customers- La Porte, TX: Community ID Refresh Identify Market Influencers All communities have special and often unique features that impact the local retail market and have to be taken into consideration to fully understand the market potential of the community. Such influencers include larger ethnic populations, significant new or expanded developments, military bases, universities and colleges, destination tourist attractions, prisons, medical facilities or major employers. After identifying these market influencers in your community, Buxton will quantify and qualify their influence on the retail market and help to match retailers that can capitalize on these customer bases. You will benefit from the project team's expertise and insight in these four areas: 1. Researching and verifying La Porte's retail trade area 2. Evaluating La Porte's retail potential 3. Matching retailers and restaurants to La Porte's market potential 4. Delivering La Porte's marketing packages These four major components comprise the Communi tyID@ process. Each component is explained in detail as follows: 1. Researching and Verifying La Porte's Retail Trade Area The location decision process for all retailers begins with the collection, analysis and evaluation of numerous location variables such as demand density, customer buying habits, economic trends, competition, traffic volumes, and available sites, to name a few. The Community ID process for La Porte will also start with the in -depth collection of data using the same location variables that we use for our retail clients to qualify sites for the location of their retail stores and restaurants. One goal is to define current retail situations in La Porte, in the trade area and in any neighboring communities that impact on La Porte's retail environment. The other goal is to understand the community's expectations and desires. This analysis includes personal visits to the community, collection of data components necessary to conduct the analysis and identification of market influencers. 8 Bu~ton<< IDentifying Customers" La Porte, TX: CommunityID Refresh Drive-Time Trade Area Definition Customers today shop by convenience, measuring distance based on time, not mileage. Community ID will employ a custom drive -time analysis to determine La Porte's trade area. An example of a drive-time trade area is shown in Figure 1. This custom analysis is developed using an in -house database supported by our knowledge of individual retail client's actual trade areas. The resulting drive-time trade area map will be a polygon that more accurately depicts consumer shopping patterns than trade rings. To assure the accuracy of the drive -time trade area, the draft maps are reviewed with community leaders and verified before proceeding with the next step. Figure l.Example - Drive-Time Trade Area 9 Bu ron~ IDentifying Customers' La Porte, TX: Community ID Refresh 2. Evaluating La Porte's Retail Potential The purpose of the evaluation phase is to understand what makes La Porte distinctive and valuable from a retailer's viewpoint and scrutiny. Our evaluations capitalize on Buxton's knowledge about the retail marketplace and the location requirements and expectations of retailers. Combining this knowledge with our economic development competencies allow us to evaluate and recommend proven community practices. Our evaluations do not rely on dated government research or nationaljs tate statistics, all of which fail to reflect local realities. Rather, we implement our real-world experience gained from working with municipalities that have opened more than 20 million square feet of new or expanded retail space. We know how to help La Porte sharpen your retail marketing strategy, aggressively market the city and improve your competitive performance. Retail Leakage/Supply Analysis The Retail Leakage/Supply Analysis provides an estimate of retail dollars flowing in or out of the trade area. The two main components of this analysis are: 1) current sales (supply) by retail store type, in dollar amounts, and 2) estimated sales potential (demand) for retail store type, in dollar amounts. We first calculate a sales gap index that illustra tes your ability to capture your residents' expenditures. An example of this index is shown in Figure 2. The sales gap index provides a relative comparison of leakage/surplus and an estimate of the dollars that are being spent outside the trade are a (leakage) and the amount of dollars coming in from outside the trade area (surplus). This report can be run via SCOUT at any location within the map view. 10 Bu~~ on~ IDentifying Customers- La Porte, TX: CommunityID Refresh Figure 2.Example - Sale Gap Index Customer Profiling The Community ID process will identify and analyze all the households in La Porte's drive-time trade area. Based on more than 75,000 categories of lifestyles, purchase behaviors and media reading and viewing habits (psychographics), the households in your trade area are assessed to gain an understanding of the types of retailers that would be attracted to your community. Our in -house databases include both traditional demographic data and the most current psychographic lifestyle information for over 120 million households in the United States (as well as up to seven individuals living in each of these households). Each household in a trade area falls into one of 60 market segments reflecting the buying habits of customers in the household_ The blue line in Figure 3 graphically profiles the households in a city's trade area. 11 Bu~~ton<< IDentifying Customers' La Porte, TX: Community ID Refresh Figure 3: Example - Psychographic Profile IB IS 12 Retail Site Assessment Buxton will analyze your original retail location used in our previous study. Based on our collective experience in retailloc ations, the following factors are considered: · Psychographic analysis of households in trade area . Demand for retail goods and services . Site setting, situation and configuration . Growth plans and relevant development · Retail goals of the community Buxton will develop a demand density profile of La Porte's trade area. Demand density measures the bottom-line value of the customers in the trade area-who they are, how many there are and what they buy. One of the significant advantages of Buxton is our ability to take the demand density data and to creatively translate it into a proactive market strategy tailored to take advantage of La Porte's strengths and to achieve its retail goals. 12 Buton~ IDentifying Customers' La Porte, TX: Community ID Refresh 3. Matching Retailers and Restaurants to La Porte's Market Potential Once the site for retail matching has been selected and the consumer profiles in La Porte's trade area have been determined, the Community ID process will match these profiles against the customer profiles of 5,000 + retailers in our proprietary database. In Figure 4, the blue line indicates the customer profile of households in a community's trade area. The red bar represents a specific retailer's customer profile. A similarity between the two profiles as shown in Figure 4 analyzed using Buxton's proprietary retail matching algorithm concludes that this site is an opportunity for a specific retailer to open a successful store. This matching results in a list of possible retailers. To develop the preliminary retail match list, Buxton analyzes a number of factors about each possible retailer to qualify it. This analysis is designed to eliminate those retailers that for any reason would not be a candidate for La Porte. Considered in this analysis are such factors as, verification of a retailer currently operating or expanding into your market, location of operations in similar cities, and competition and cannibalization from nearby locations. Once this analysis is complete, the preliminary list of retailers will be discussed and reviewed with La Porte. All retail matches will be available to La Porte with the ability to select two (2) specific retailers for contact information. 13 Bu~ Ona IDentifying Customers' La Porte, TX: CommunityID Refresh Figure 4: Example - Trade Area Consumers Matched with Retailer Customer Profil e 18 15 12 4. Delivering La Porte's Marketing Packages Buxton will assemble individualized marketing (pursuit) packages for each targeted retailer. At La Porte's request, Buxton will customize each marketing package for presentation to individual retailers, developers, real estate brokers or potential franchisees. Because it is tailored to the specific needs of the target audience, each marketing package is ready to use as collateral marketing materials providing compelling and precise information that demonstrates La Porte's qualifications as a location. Each marketing package contains: 1. Map of the retail site and trade area 2. Map of retailer's potential customers 3. Retailer match report that compares the site's trade area characteristics with the retailer's locations in similar trade areas 4. Demographic and psychographic profiles of the households in the trade area Community ID targets not only specific companies but also the individual in the company who has the responsibility for location decisions. To provide the best possible reception when La Porte contacts the targeted retailer, Buxton notifies each company that La Porte has been qualified by Buxton as a potential viable location for a store, restaurant or development and should expect to be contacted by a representative of the city. 14 Bu}(ton~ IDentifying Customers' La Porte, TX: CommunityID Refresh Figure 5: Example - Retail Match Report (Retail Match Report summarizes a city's location advantages for a specific retailer). Community/D- Profile Match Report U1lIjl3ny: RtI3iI!t xu Iltport Dali!: lilt: W. smr & UKfVElSlH r~r (_nit/. USA Segmentation Prolile('" Kioote Drive Timt)(2) ,. ,. 8 ,. '" I g u ~ . e"""",,"l' ProlIIe (e.:mnanl SEgmef!f.s~'1 . Campany Pra/l1o lAIl Ohr Segmerts~ -,.~. Trade Area Comparison (1 Kinute Drive Time) T ot,,1 Population Total Hous.holds Ie. rn .lvttagl! T ra4t will 96,039 36,190 rOllr Cornmaniq. lI'SA Silt Tra4t 1m Wrtsl htjwtd 1l8,139 45,199 Company Dominant Segml!flt Households 22,122 33,871 135,133 49.573 36.662 '"'-"'-- .. om. T'Amo ,"0_1__ 0111Io _ ..lMnp......._ Evey u.s. housett:nl tl CUlffied rm!me at<50ttdrJct ~nts dl!s::t!bed lUj l'\at ~!fs.~.sm spending! t\.!blts. .t\1t;e2'rle II used ID ~ 1M ~.....1- M'Ist!~lh8t mates tlf)iIlt:est)~ofll~.~~:Ren: 2A.:;t:~_ TnoR segm.enU Id!'m. the 1Ite'S lMYe ~ nde.u (SLUE UNEJ. RmterXYZ7ade:.-eas used n'NI~lIfe.sm_m~..andmartet~IDYOJtCO!'MU\ltf, USA. 15 Bu~ ana IDentifying Customers' La Porte, TX: Community ID Refresh DELIVERABLES Community ID deliverables will be presented to La Porte via SCOUT, an electronic format (described below). Hard copies of all Community ID deliverables including marketing packages are available upon request. SCOUT is an online marketing system that will allow you to effectively use Community ID by enabling you to showcase your best retail site to achieve maximum results. You can access Community ID reports via SCOUT to reproduce maps, site-specific data and generate your own custom marketing presentations. With SCOUT you are directly tied to La Porte password protected data, maintained and updated in Buxton's databanks. Using your computer you can tailor reports and presentations and immediately respond to questions or information requests from retailers or developers. SCOUT allows you to: · Graphically display and count the households that appeal to specifi c target retailers · Create a Leakage/Surplus Analysis report for any location in your community · Manage all your retail-specific data, from maps to photos to zoning information, in a central location · Merge your community's existing marketing materials with Community ID · Select the information that best makes your case · Store and retrieve information on retail buildings and sites · Organize all relevant retail information in a central data center · Present all materials electronically to recruit retailers and develo pers Beginning in the third year, a complete refresh will be provided using updated data. Oeliverables include the following: · Drive Time Trade Area Map · Retail Site Assessment - includes Retail Leakage/Supply Analysis and Customer Profile · Retail Match List · Marketing (Pursuit) Packages for two (2) retailers 16 Bu~ on<< IDentifying Customers' La Porte, TX: Community ID Refresh VI. PROJECT TEAM Team members for your project will include Buxton personnel with strong retail and economic development backgrounds as well those from operations: the Territory Business Manager, Senior Vice President, Operations representative and Client Services representative. Chas Stoker Territory Business Manager, Community ID As a Community ID territory business manager, Chas works with municipalities in their retail economic development efforts. By understanding what retailers need to make site selection decisions, Chas en abl.es community leaders to understand and "speak retaiL" Chas brings a strong knowledge of the Community ID retail economic development strategy and a solid background in client service to his position. He has been a featured presenter at a number of conferences such as the Pennsylvania State Association of Township Supervisors, Southwest Alabama Economic Development Association and the North Carolina Municipal League. He is focused on communities in Texas. Chas earned his B.A. degree from Texas A&M Unive rsity and is a member of the International Council of Shopping Centers (ICSC). Buxton has worked with more than 400 communities nationwide, helping to recruit over 20 million square feet of retail. Chas' clients include Kingsport, Tenn., EI Paso, Texas, Du ncanville, Texas, Celina, Texas and many more. 17 Bu~ on~ IDentifying Customers' La Porte, TX: CommunityID Refresh Chip Rodgers Senior Vice President, Community ID Division Chip has worked with numerous municipalities throughout the United States to maximize their sales tax growth and quality of life by successfully attracting new shopping and dining options. He has shared his insights and knowledge by speaking to economic development organizations such as Florida City and County Managers Association, Virginia Municipal League, Florida League of Municipalities and Texas Municipal League. Prior to joining Buxton, Chip was with Florida-based MPS, where he worked with city and county governments to develop strategies for delivering services to their residents via the Internet. Chip is a graduate of Oklahoma State University . anet Ehret Client Services Janet facilitates communication between clients and Buxton's operations teams. She ensures that the highest level of ser vice is delivered to clients in a timely manner. Janet has worked with more than 250 municipalities throughout the United States. Prior to joining Buxton, Janet worked as office manager of the Real Estate Department at RadioShack. Janet graduated from Mississippi State University with a major in marketing. 18 Bu~~ton~ IDentifying Customers' La Porte, TX: CommunityID Refresh Philip Davis Manager/Senior GIS Analyst As senior analyst for the Community ID division, Philip oversees every aspect of CommunityID projects in Buxton's GIS department. His duties include supervising daily operations, working with clients, managing projects and serving as a liaison between analysts and the sales team. Philip has managed the GIS function for more than 350 Community ID projects for such clients as San Jose, CA; Atlanta, GA.; and Birmingham, AL. Working on projects for two divisions in the company has given Philip a complete understanding of both the retail industry and municipal needs, adding to his expertise in community retail recruitment. Philip graduated from the University of North Texas with a degree in Geography. Chris Briggs Director of Client Relations Community ID Division As director of client relations for the Community ID division, Chris works to align public sector partner needs with Buxton's ever -evolving capabilities. In this role he also serves as a liaison between Buxton's public sector partners and analytic staff. Chris' extensive background with Buxton includes working in Senior GIS Analyst positions with the CommunityID, CustomerID and HealthcareID divisions. Most recently Chris served as Buxton's Director of Operations where he oversaw the people, processes, and technologies that support the entirety of Buxton's client base. This experience has instilled within Chris a unique perspective as to what Buxton's tools and insights can do to help its public sector partners in their efforts to create better communities. 19 Bu~ ton<< IDentifying Customers' La Porte, TX: Community ID Refresh Chris graduated from the University of North Texas. He was named the UNT College of Arts and Sciences Alumni of the Year in 2007, and he was rec ognized as the UNT Geography Outstanding Alumni for 2007. Chris served as a private sector partner on the planning committee for the 2009 International City Managers Association conference in Montreal. Bill R. Shelton, CEcD Partner Community ID Division Bill is a founding partner of Community ID, Buxton's retail development program for communities. For more than 20 years, Bill worked for the Fort Worth Chamber of Commerce, serving 16 years as its president. He is a Certified Economic Developer and is past chair of the American Economic Development Council. A founding member of the Texas Economic Development Council, he has served as the organiz ation's president. Bill was honored with a lifetime membership to the International Economic Development Council. Bill's professional service also includes serving as dean of the Basic Economic Development Course at Texas A&M University. Bill holds a bache lor's degree in marketing from the University of Texas at Austin, and he completed post - graduate studies at Texas A&M University. Harvey H. Yamagata Partner Buxton Clients benefit from the expertise Harvey has gained during 35 years in retail, including leadership roles in brick and mortar, catalog and website retailing. His 20-year career at Tandy Corporation covered the time when the company gre w 20 Bu~ on~ IDentifying Customers' La Porte, TX: CommunityID Refresh from $350 million to $3.5 billion in sales and took him from retailing in Europe to opening distributors in Asia. He headed the marketing efforts of the RadioShack Business Products division at a time when they held the major share in the burgeoning personal computer market. Harvey received a bachelor's degree from the University of Wisconsin and a master of business administration degree from Texas Christian University. 21 Bu}{ton<< IDentifying Customers' La Porte, TX: CommunityID Refresh VII. PROJECT REQUIREMENTS To effectively initiate this project, we request t hat you provide the following: 1. Project Liaison . La Porte will designate a project manager who will serve as Buxton's primary contact during the project. 2. Community Information and Reports . Logo (vector file - request from your ad agency and/or printer) . Address and descriptive information for the site that will be evaluated . Current traffic count data 22 Bu~ on~ IDentifying Customers' La Porte, TX: Community ID Refresh VIII. FEE FOR SERVICES The Cost of Community ID is $10,000; payable as follows: 1. $5,000 due upon execution of this agreement 2. $5,000 due upon delivery of retail marketing packages SCOUT will be delivered for one -year with this agreement and includes the following: 1. Waived - Monthly maintenance fee of $1,000 per month 2. Waived - Set Up fee of $3,000 After the first year there will be a $1,000 per month SCOUT maintenance fee. The first year begins upon completion of the project. La Porte may cancel SCOUT at any time with thirty (30) days written notice. If cancellation is within the first three years, the $3,000 set up fee will be charged. Direct travel costs will be charged for a ny pre-arranged, mutually agreed upon travel associated with the project. This does not include travel associated with the presentation or negotiation of this agreement. 23 Bu ona IDentifying Customers' La Porte, TX: CommunityID Refresh IX. SIGNATURE PAGE This agreement is between La Porte and Buxton (the "Parties") for the performance of services described in this proposal. The Parties agree that an independent contractor/employer relationship is created as a result of this agreement. Buxton will not be considered an agent or employee of La Porte for any purpose. This agreement may be terminated by La Porte at any time upon written notice of thirty (30) days. If this agreement is terminated, Buxton will be paid for services performed up to the date the written notice is received. This agreement shall be administered and interpreted under the laws of the State of Texas. In order to avoid paying State of Texas Sales and Use Tax, La Porte may be required to provide Buxton with a certificate indicating it is a non -profit corporation and not subject to Texas Sales a nd Use Tax. Agreed and accepted this day of , 2010. Stacey Osborne Economic Development Coordinator City of La Porte 604 West Fairmont Pkwy La Porte, TX 77571 David Glover Chief Financial Officer Buxton 2651 S. Polaris Drive Fort Worth, TX 76137 cb~~ (Signature) (Signature) 24 Bu IDentifying Customers- La Porte, TX: Community ID Refresh X. ENDORSEMENTS/REFERENCES Buxton prides itself on exceptional client service that results in ongoing client satisfaction. Following are just a few of many end orsements from Community ID clients. Kingsport, TN - Jeff Fleming, Assistant City Manager Kingsport, Tennessee is a city of 44,000 in a county of 150,000 in an MSA of 303,000. Kingsport is part of the Johnson City -Kingsport-Bristol CSA (combined statisti cal area), with a population of approximately 500,000. Both Johnson City and Bristol are substantial retail centers as well. Tennessee distributes sales tax revenues based on point-of-sale, so retailing activity is highly competitive among municipalities and counties. There is no provision for a municipality or county to benefit from sales occurring in neighboring cities/counties, so it is definitely a high stakes proposition . Were you satisfied with the finished product? Yes, we were very satisfied. We were initially disappointed that Buxton did not identify some of the retailers we really wanted. They were very good to explain why we weren't a fit for certain retailers (like Costco, for example). If the numbers won't work, Buxton won't "cook them" just to make it look good. This speaks to their credibility in my opinion. It was an important "reality check" for our elected and appointed leaders to learn that retail isn't just a lobbying effort. It's a market-based research effort plus a lobbying effort. Was it worth the money? We have landed 2 shopping centers with the assistance of the Buxton data and we are in the process of redeveloping another. One generates $55 million in annual sales, the other generates $96 million. The third involves a complete overhaul of our mall (www.kingsporttowncenter.com ), where private investors are taking it from an appraised tax value of $33 million to $92 million. While all of it cannot be specifically attri buted to Buxton, it was certainly an integral part of the success. So, yes it was worth the money. We have landed Target, Kohl's, Old Navy, Dress Barn, Lifeway, Shoe Carnival, Maurices, Michaels, Books-A-Million, ULTA, Dick's Sporting Goods, Best Buy, To my Thai, Batteries Plus, Ritz Camera, McAlister's, Hobby Lobby, Pier 1, Ross, TJMaxx, Petsmart, Chili's, Cootie Brown's, Salsarita's, Starbucks and Panera Bread. Did it require a lot of city staff time? If so, about how many hours? I wouldn't say it required a lot of time, but Buxton's timeline is controlled by the quickness of response from city officials. We opted to handle it at a staff level, i.e. there was not a retail committee or an elected body involved. I would say we invested maybe a 25 Bu~ on~ IDentifying Customers' La Porte, TX: Community ID Refresh week's worth of 1 staff person's time (mine). deciding the beginning point for the analysis. among competing sites. Probably the most difficult process was We were hypersensitive about favoritism After the analysis was complete, was it easy to set up appointmen ts with the identified retailers/restaurateurs? I have found that it's never easy to set up appointments with retailers/restaurateurs. In my experience, it is more important to support the developer(s) who are working in your community. For example, General Growth (the leasing agent for our mall and one of the largest retail management companies in the world) can get an appointment when a municipality cannot. The Buxton letter and data "greased the skids" for these meetings. GGP and I tag teamed the te nants. The tenant received individual letters from both GGP and I. When they arrived, they said they had never heard of Kingsport, Tennessee and now they hear about it every time they turn around. That is the power of the Buxton data. "Top of mind" name recognition that opens doors for your developers to be successful. GGP is just one example. Were you satisfied with the team members that were assigned to your community? Yes, they were great. They were very patient and helpful. As I said, they really helped us with a reality check without making us feel dumb! Have you used SCOUT and is it easy to produce documents? Yes and yes. I have also used it for non -retail projects. For example, we are siting an aquatic facility and I used some of the de mographics in that site selection process. Were there any other hidden fees? Not that I recall. We were pretty skeptical, so we scrutinized greatly. We were not disappointed. If you were to do it all over again, would you still contract with Buxton? Absolutely. I have been very pleased. 26 Bu ~ton<< IDentifying Customers' La Porte, TX: Community lD Refresh South Bend, IN - Bill Schalliol, Economic Development Planner Did you go through an RFQ process? No. I met Buxton reps at the lCSC Spring Convention and my Mayor met Buxton reps at a regional lCSC event and we bo th were impressed with the services they offered and entered into a contract with Buxton through a professional services arrangement. Did you have any viable candidates other than Buxton? No. What we were shopping for at the time we crossed paths with Buxton was education about the retail recruitment and location process. Buxton, through their processes, helped us better understand who we were and what we could achieve. Did you face any opposition to hiring Buxton? If so, any advice on how to win th em over? Several are very skeptical. They think we can do it in -house with the existing resources and that the demographic/psychographic information is readily available on the internet, Our local newspaper quoted some of our business leaders as saying, "We get three of us in a room, get some beer and pizza, and we could put together the same report that this Texas group is doing. How are a bunch of cowboys going to know what we need up here in South Bend??" I can tell you from our specific experience, you can't do in -house what Buxton can do. The internet only will get you so far. And the key piece of information that the Buxton people give you that other services can't is the psychographic modeling component. Did Buxton deliver on the deliverab les promised under your contract? Yes. We got everything promised and more. The data was fantastic and has been used again and again. We asked for an electronic copy of all the data and have put together data CD's for all of our real estate professionals and others that can use the data. Were there any "hidden" fees or surprises outside the contract with Buxton? We actually got more than we paid for. When we first started the process, we thought we were buying a product (and we did), but we also bought a relationship and so as we had questions we bounce questions off our reps. They have been great to work with. When you received your target information did the Buxton team give you any training or pointers on how to approach the target? That is the million dollar question. The answer is no and it is really no fault of Buxton's. As I have learned from the user community, everyone goes through the process for different reasons and uses the data for different purposes. We didn't really think through how we would use the data, so we struggled with things once we got our deliverables. But because Buxton has learned from communities like ours, they have created a very helpful user network to put communities in touch with other 27 Eu ton~ IDentifying Customers' La Porte, TX: CommunityID Refresh communities. If you sign with Buxton, people all over the country are using this data and can help guide you. Did you hire a fuIltime recruiter or did you handle the target contact with in -house staff? In addition to doing retail development, I do property acquisition, demolitio n coordination, and many other things. Once we realized we had all of this great information and had no tools to use it, we got all of our real estate reps and developers together, gave them the data, had a Buxton rep in to explain the data, and they have been using the data to bring retail to South Bend. When you don't have time to do it yourself, find people that do the job and use them, use them, use them. If you hired someone, what qualifications did you look for? A real estate background with some knowledge of marketing or a marketer with knowledge of retail would have been helpful. I think every person you talk to about Buxton would have a different answer based upon the needs. If you did it in-house, what qualifications/training did the perso n have? In my case, we got very involved with ICSC (International Council of Shopping Centers) and tried to learn as much as possible about retail and how it works. Did any of the targets suggest new construction as an option? Several of the retailers have built new construction or have become tenants in new construction projects. How many interested targets did you have and of those how many ended up moving to your location? How many of those are still there? Our process for our retail list was a bit different. Our market is a pretty commercial heavy market and so we were looking for retailers that were here or looking to expand. We were also trying to find tenants for older commercial corridors or for other areas. We have had one true success off of our selected retailer list, but we have several that were on our original match list that we used the Buxton data to attract or support their decisions. The psychographic data was a good tool in those decisions. Of interested targets, what was their tim eline for opening a location in your area? Texas Roadhouse, is open and is operating well above expectations. And with operating taxes, sales taxes and employee taxes that the restaurant pays, our study has paid for itself with just this one hit. If you had it to do all over again, would you do anything different? If so, please explain. Yes. We would have created a retail strategy and thought through the process a bit better. The advantage that new users to the Buxton process have is the experiences an d 28 Bu on<< IDentifying CustOmers' La Porte, TX: Community ID Refresh successes/failures of those that have come before them. Get involved through the Buxton process and it will work well for your community. 29 Bu~tona IDentifying Customers- La Porte, TX: Community ID Refresh Rochelle, 11 - Peggy Friday, Commercial/Retail Development Coordinator The value of the CommunityID Study is bei ng realized each time we ascertain a new development project in Rochelle. The psychographic and demographic facts have been well received by developers, brokers, retailers and entrepreneurs whose due diligence has brought them to our community. The addit ion of the SCOUT tool is consistent with the City's new technology brand and updated mission and vision statements. Your generosity will be felt each time the SCOUT is used to promote Rochelle and Buxton. We are pleased with the quality of your product a nd the superior level of customer service we have experienced. The professionalism of your staff is a direct reflection on the management team at Buxton. You continue to exceed our expectations. Clemson, SC - Andy Blondeau, Program Manager We're running out of places to put our new businesses... The Buxton marketing piece got us in the door. The site selector they sent to meet with us referenced the folder and said he was there as a result. 30 Bu~~ton~ IDentifying Customers" La Porte, TX: Community ID Refresh Pinetop-Lakeside, AZ - Connie Boggs, Main-Street Executive Director Tell us your level of satisfaction or dissatisfaction with Buxton's report. Did Buxton deliver what they promised, on time and for the price you set with them? Our satisfaction with the Buxton CommunityID report has been tremendous for Pinetop - Lakeside. We met with several of the retailers identified by the report at ICSC in Las Vegas. I was able to present them with their own individual study. Buxton delivered what they promised, on time and at the price we agreed on. They didn't just do a repo rt for us they became involved in the community and they call us to find out what else they can help us with often. They just don't drop you after their work is complete. Would you use them again? If so, why? We will use Buxton again when it's time to update our report because of the initial work they did for us. We love working with their staff of professionals. Tell us your opinion on the success you have had, or not, in getting any recommended companies to locate to your area. After our meetings at ICSC I have followed up on the companies we met with. I am working on 2 big-boxes as we speak. Buxton has certainly opened the doors for us. Retailers recognize the Buxton name and realize our community is serious about retail if we took the time and mo ney to have Buxton work for us. What role do you believe the Buxton data may have played in supporting your recruitment efforts? There is no better place than Buxton to get the best data out there. We depend on our second homeowners and data on this is not available or we could never have anyone else tell us where to find it except Buxton. When you present the Buxton report with the data available in your community to a retailer they listen. If you've been successful, or if your answer is no so far, d 0 you know if other retailers are seriously considering your trade area because of this process? Buxton isn't the only answer to recruiting retail to your community. It is a tool. Your economic development team needs to be pro -active with the goals you have. In addition, to the Buxton report we just completed an economic development DVD along with community tip sheets that are also being sent to the retailers Buxton identified. It's an ongoing process. If I ever have any additional questions about a cer tain retailer not identified by Buxton I can call my representative and you can rest assured I will have a call from him before I hang up the telephone. The process is lengthy...meetings, telephone calls, emails. Some of the things they require are aerials (expensive unless you have a friend who has an airplane), site plans etc. I have no doubt that they will locate but it's not a 30 day turn around if that's what you are expecting. 31 Bu~ ona IDentifying Customers' La Porte, TX: Community ID Refresh How aggressive have your local recruitment efforts been since receiving Bu xton's report? What role did it play in the outcome? You don't let the Buxton report sit on a shelf and gather dust if you are serious about retail recruitment and our community is. Our Town Council is very pro -active and they increased my operating budge t this year to give me the needed tools to do a better job. I am a one woman operation. I love what I do for our community. 32 Bu~ on~ IDentifying Customers' La Porte, TX: Community ID Refresh Duncanville, TX - Earle Jones, Director of Economic Development We have had a wonderful relationship with Buxton. Not only did they provide us with a Phase 1 & Phase 2 report in 2004, they have continued to work with us on various projects of importance to our overall City economy. We are a city of almost 38,000 residents and are small, 11.2 square miles, contiguous to and surroun ded on three sides by Dallas. We are what is known as a first tier suburb, in that we are closest of the southern suburban communities that ring Dallas. Our major development took place in the 60's, 70's and early 80's. Our growth stagnated, and we have revitalized the City in the last 5 years, with some innovative new developments. Our most recent project success involves a 150,000 square foot Costco Club Warehouse, and a mixed -use multifamily and retail project with over 100,000 square feet of retail and 216 units of high quality, gated multifamily rental units along a creek which is to be a dedicated City Park with water flow, fountains, landscaping and lighting. We believe that Buxton played a significant part in our success in getting these projects. Thus far we have a number of restaurant prospects, several banks and a fitness club who have been interested in this location. I would most certainly recommend Buxton and their services, for the reasons outlined above. Denton, TX - Linda Ratliff, Director of Community Development Get your money's worth? Yes. In addition to the CommunityID product, we asked them to review an incentive request we received from a developer for a 50 acre power center. We had never given retail an incentive at that time. Buxton's help with that project saved us $750,000 in incentives and the project was built and produced almost $2M in City property and sales tax in 2006. Get any of the people on the list of 20 prospects to locate in Denton? We either got the retailer or one similar. For example, instead of a Circuit City, we got a Best Buy; instead of a Linens N Things, we got a Bed Bath & Beyond. The only one we have not yet gotten is a furniture store. We have a few furniture stores in town. We were hoping for a Haverty's or something similar. What was the most important thing(s) you got from the study? We learned a lot about retail recruitment. The information was helpful in putting together our marketing pieces to distribute at ICSC (International Confe rence of Shopping Centers). We also learned the types of retail Denton could expect to recruit. 33 Bu~ on~ IDentifying Customers' La Porte, TX: CommunitylD Refresh Would you use their services again? We have. We called on Buxton to update their data for four sites that we highlighted in our retail piece. They turned it around very quickly so that we could get our brochure printed in time for the annual lCSC trade show. TIley also let us display our brochures at their booth at lCSe. 34 Bu~ on~ IDentifying Customers' La Porte, TX: Community ID Refresh Cupertino, CA - Kelly Kline, Redevelopment/Economic Development Manager Is there an estimated or "ballpark" retail/commercial square footage number that can be attributed (totally or in part) to Buxton's services? Are there any specific retailers that have located in Cupertino or another jurisdiction you served that can be attributed (totally or in part) to Buxton's services? It's very hard to make those connections. Let me give you some feedback and examples that explain why. . There are rarely immediate results in retail. Most respectable retailers are planning stores for 2 -3 years down the road in their development cycle. By the time you know for sure whether the eagle has landed, you, the City Manager, and the City Council may be gone! This money must be viewed as a long-term investment. · Sometimes deals go awry based on market conditi ons. We were very close to landing Borders in Downtown San Jose (thanks to Buxton's efforts) and then the bottom fell out of the bookstore industry. They put a halt to all deals they had been pursuing, and now may not even last as a company. · The Buxton match list can give you leverage with a developer who is claiming that there is no interest, or different interest than what actually exists. · I recently used my match list to retain an existing shoe store. Their sales had been down, and they were ready to abandon our city. I showed them that several of their competitors were on our match list, and that there is significant leakage in this category. This data made them decide to give us a second shot. They are now going to increase their marketing effor ts and store presence before they make any decisions about the future of the store. Bottom line - there are definitely a few total and partial success stories. But, more importantly, I can say that the list has opened doors previously closed tight, has ex tended conversations with retailers who had previously been "lukewarm", and has provide value to me in so many ways that I can't keep count. Buxton is my partner in retail recruitment. This needs to be viewed as a holistic and powerful tool for your program. It will take years for your program to be successful and to have the tangible success that your decision makers are looking for. This will be an excellent first step. If I were you I would try to steer them away from trying view success as a one-store opening - it's a dangerous road to go down! In some ways, making this expenditure is a stake in the ground - a commitment from the city that they value retail, 35 Bu~ on~ IDentifying Customers' La Porte, TX: Community ID Refresh and that they are serious about their recruitment efforts. A relationship with Buxton sends a very strong message to the retail community. 36 ~ Retail Reauitment Strategy A PROPOSAL FOR THE CITY OF LA PORTE, TEXAS AUGUST 20, 2009 The etailCoach@ Retail Analytics & Locational Intelligence THIS AGREEMENT is made and entered into as of the day of 2009, by and between a limited liability entity, The Retail Coach, L.L.C. (hereinafter "TRC") and the City of La Porte, Texas (hereinafter "COLP"). WITNESSETH: WHEREAS, COLP is seeking to attract retail and retail development for La Porte through the completion of a retail recruitment and development strategy; and WHEREAS, TRC desires to provide assistance to COLP with the assessment, development and execution of a retail recruitment and development strategy and utilize the Buxton study, where appropriate; and WHEREAS, the parties hereto desire to set forth their mutual understandings and agreements regarding the services to be performed by TRC. NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows: PROJECT TEAM With national experience, the TRC team excels in: 1) developing market-based, community-specific approaches to retail recruitment, development and redevelopment strategies; 2) directing retail economic development and community development projects; 3) executing the strategy on behalf of our clients; and 4) equipping and coaching our clients in their ongoing and future retail development efforts. The directors for this project will be C. Kelly Cofer, CCIM and Aaron Farmer. Mr. Cofer and Mr. Farmer are active coaches to numerous economic development organizations throughout the United States with market research services and comprehensive retail recruitment, development and redevelopment plans that are uniquely market-based and community-driven. Mylea London, Director of Marketing, will aid Mr. Cofer and Mr. Farmer with the development and execution of the strategies developed for this project. PROJECT APPROACH TRC proposes the following process for completing our work for Phase 1: 2 ASSESSMENT During the assessment phase, we will first endeavor to understand The City of La Porte's economic dynamics in order to develop unique retail strategies that address the City's issues. We will execute both regional and local market analyses, from which we will then determine the areas and sites within the City which offer the greatest development and redevelopment opportunities. · Retail Recruitment and Development Strategy - The retail analysis involves several key steps: Retail Trade Area Determination & Analysis · TRC will analyze the retail market by traveling primary and secondary traffic arteries in La Porte to gain a better understanding of current retail offerings, as well as retail gaps. During this process, we identify ingress and egress to retail areas from population clusters, residential neighborhoods and other communities. · TRC will perform retail assessments and competition analyses in surrounding communities (Deer Park, Pasadena, etc.) that compete with La Porte and record their primary retailers and restaurants. · TRC will then define, and create, a hand-charted boundary map for the Retail Trade Area based on our research, time spent in the community, competition analysis factors, and personal interviews with area retailers and residents combined with demographic and consumer purchasing data for the area. · TRC will update the radials analyses completed during the Buxton Study. · TRC will also update the drivetime analyses completed in the Buxton Study. · TRC will further substantiate our findings, and better confirm the Retail Trade Area, by interviewing and/or meeting with numerous primary retailers and restaurants in La Porte. 3 Retail Trade Area Map. (Dyer, Indiana) Psychographic & Demographic Profiling · TRC will develop a comprehensive demographic profile for comprised of Retail Trade Area demographics and local community demographics. · TRC will then update the Psychographies Report completed in the Buxton Study. 4 AI';Khe Tnil SUhtllMk"l D",w'l;nl'hic 1'",1,1.' Apadlt' Jun<-tion, ArUona Aptd jHUOO8 ~..oodby< <<",C~,CQM 1_ *'_....~.""'" .....:~,~ TMftet.IIICoac:h,' ------- Cleveland, Texas Retail Trade Area Lifestyle Segments Summary 8.00% We determine those segments which rep- - ,- resent approximately ~---,-,_.._.._.._-,----- SOOk of the retail trade area population. -- I ._-_._.._-_.~---_.~--_.~_.~-_._._.,------- ---- I I -- _.._----~--~.~-----~-~---_._~.~.~._---_.._._--------_.~-- -..-...... _m.____..____m_____ -- ---- -- ~...._- -- ---. ----..-..- .--- ----- --- -- 1----- -- -.------- ,....-- m __~~m_.. -.-.----.-.---, ----- I-m ..- --- --- -- ----.--.--- ,----- I i i i , , I , I I , I I , I_I 1.1 I I i , I I , I _I! . I , I I I I I , , I , I 1!llllllliljlllillll'lllllflllll!ll1lllllllf!!!Jlijllllllfllllll'!l 12.00% 10.00% 8.00% 4.00% 2.00% 0.00% 5 Retail Gap Analysis · TRC will use our "Retail Coach" proprietary software model to analyze estimated actual sales figures, formulate estimated potential sales and identify and document retail sales surpluses and/or leakages in 52 different retail sectors within the La Porte community. · TRC will create and provide summary graphs of each retail sector illustrating potential sales versus estimated actual sales. · TRC will create and provide a customizable Microsott@ PowerPoint presentation containing retail leakage analysis summary information. Primary Rcrail 'Jr..de Area SUllllnary hble ~ IllUl.Sf(1OI: 'JI hnt....~o ~) 1~>l (;IN;....e ~" ~~ '~v. IU3fi~~ ',11 t/(.,t4IAlt:>{ !>) Gi.M:.iIAt11l. "A. "',">(H':~ ~.V ~mhM '.n fld.)R1\ii'Q!t 'A1 (;.o",tM.m ~ o.,r.fk4.-:h .'M.flwII~ ~) .~'l->ftj*")oftl l'i'>l """""'"'>:1 Y>.~ t,J"d(:.)tUw v,J 1dtHiI~IM ...,.. ~~'~,~ ~I.;S bl~ YA Ihn)i:iomit> !...: \.t.J>"'"-"rtl'(M; '1,.,~Or y,l ~Hn:t~ ~.'~~ POTENTIAL SALES $1.416.478.000 1OTl:Nl1A\ SAUS BT,AClU&l SAllS SUtlI'lUlo'llMIQ ... WM,U$ Summary '[.hle (c<>nlillued) 'i.i\. 'Ale"."" ~l4).nJ(l !J:.<j Mi::.o"il\ll.~"',"1",,1Ol.IMh01w,...,~\ n~hr.~1! VI Il\wIooI;'fufllWf4OdrtfrNlll\I S-W.'11;f;-.)O !>.'1 ~~.;l-~", Sj>,t~ \on A.d>.I'i.-d'.,('~~~. $I'.:Ul1.U-~ 211 t<lt~tbt~ 3.~,"'Ji.l $eU 0IIl~Pb<~ $~':.(" ,1 Vii Cl\.:!"~;""llq&id.lr( ~l.:tv:\I.'*, !Ill U1fNA)Ii!; Y'J"",,""'ll:il :,9.; tl~I.""'M"~~ Sli81'Jlll ii'M1 .:tth}f;('Ak:ft"~~ ~",fH ;.9U ~~_ U~IV !h'4J ~t.-nt,.:~e V,l(~1 '..u. SU;:1iii.~l .. ~, am<<v !.1~(.i'1 ~1,,'t.Jii.'b) 1l/.,fm);t:) W!O.{iJI) 'Vtoo(\<<~) ~>>) " $."~) ~(I W ,. !-Y.!.a'll>> S ~'11c11S4~ ~)(,.Nrj.)i() W.it<tm 1l>~.u.'.l :,tH);)$)OO RQ)!:lif "Sx.~\{,(Q' S.\~"').rJ Fi.,Jl->>t t'i..l'l!"";,:.)" ~:.4otU: on. 1(0(i'I;. ... '''' ".... .... ~ -$I~ .,. ~}n. j" 'JJ~ >>'lll> f)<",. 1i:Jt.~...3. VM?"; EST. AaUAL SALES SURPLUS OR LEAKAGE $218,500,000 -$1,197,978,000 LEAKAGE ,..... ~ tt4'f.41fAoOO $~ $.t>>.~ * SlllS09.Ht ,,"ttour...., It.''A<< Retail Gap Analysis Summary Table Retailer Analysis & Selection · TRC will cross-reference the Psychographic Lifestyle Segmentation Profile and Demographic Profile for the Retail Trade Area with our active database of retailers and restaurants to identify those whose preferred customers match the Combined Psychoqraphic Profiles. · TRC will provide each of the retail company name, address, contact name(s) and telephone numbers for each retailer and restaurant in a Microsott@ Excel spreadsheet file. 6 PHASE II: IMPLEMENTATION Based on the findings of the Market Analysis ,TRC will identify and develop effective strategies to enhance La Porte's retail economy. Deliverables from this phase will include: Community Marketing & Packaging · TRC will develop a community-specific Retail Outlook Guide uniquely tailored to the needs of targeted retailers and restaurants. This guide includes the Retail Trade Area map, area location map, traffic count map, and demographic profile summary and COLP logo and contact information. · TRC will create Retail Gap Summary Flyers for each of the 52 retail sectors which demonstrate sales leakage. Each flyer may be customized for marketing to specific retailers and includes retail sector leakage amount, supporting leakage amount graph, the Retail Trade Area map, brief demographic profile and COLP logo and contact information. La Porte Presentation to Targeted Retailers · TRC will contact the 10 targeted retailers and restaurants on behalf of COLP to determine their level of interest in locating to the community. · TRC will contact 10 retailers and restaurants determined to be a match in the Buxton Study on behalf of COLP to determine their level of interest in locating to the community. · TRC will provide a summary report based on our retailer and restaurant contacts. The report shall be provided in a Microsott@ Excel spreadsheet file, and will include retailer and restaurant contact information, as well as list their individual comments documented from our queries on behalf of COLP. TWELVE MONTH COACHING PERIOD We are acutely aware that retail recruitment and development is a process and not an event. In order to better ensure the successful implementation and execution of the retail recruitment and development strategies produced from and within this project, we will be available via e-mail and telephone at no additional charge in an off-site advisory ("coaching") capacity to COLP as time and schedule will allow, for a period of twelve months following completion of the project. 7 PROJECT SCHEDULE The TRC team is available to begin this work immediately upon agreement of terms. We will carry out the work plan within ninety (90) business days upon agreement of terms FEES AND EXPENSES The total fee for completion of this work is $25,000, plus actual expenses. The total cost including expenses will not exceed $26,500. · $10,000 upon execution of the Agreement; · $10,000 upon completion of Trade Area Determination and Leakage Analysis · $5,000 upon presentation of Final Report. IN WITNESS WHEREOF, the parties have executed this agreement as of the _ day of , 2009. The Retail Coach, L.L.C. By: C. Kelly Cofer, President/CEO City of La Porte, Texas (La Porte EDC) By: 8 4 Reminder: BAHEP report as item on 4B agenda every quarter meeting.