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HomeMy WebLinkAbout6A(2) Proposal for Professional Services~ A- ~ ~~ _ • ~ .SOUTH B -2 Plea/q ':'. ommunity & Economic Development ,~,~;_;_. 1200 County-City Building, 227 West Jefferson, South Bend, Indiana 46601 -1830 Phone 574/235-9371 Fax 574/235-9021 To: Redevelopment Commission From: Bill Schalliol, Economic Development Planner Subject: Professional Services for Commercial Study - Date: June 15, 2010 Attached is a proposal for professional services with the Buxton Company. The scope of work with this proposal covers three areas: 1. CommunitylD Refresh In 2006, the City of South Bend hired Buxton to complete a CommunitylD study. The four node analysis completed a 10 minute drive time analysis for Downtown (Michigan and Jefferson), LWW-Bendix, Western-Lombardy, and Michigan-Indiana. As all four nodes contained similar information, the Downtown node was selected for the full study and a retail match study was completed for the project node. Because of the flexibility of the information, the retail match list information, as well as the project report, have been used when talking to potential retailers interested in locating on the south side, the northwest side and the west side. In 2008, a second study with a 2 minute drive time analysis was completed by Buxton to study the Downtown Daytime Worker population. A second retail match list was completed with this project. The smaller drive time area was to be more reflective of the boundaries of the DTSB service area and the downtown worker population. The goal of this project was to better understand the difference between the day and night downtown area populations. ~ Work item 1 -The first element of this proposal is to update both the 10 minute and 2 minute study areas for downtown and refresh all data and reports. Additionally, a refresh of the psychographic information and the creation of a retail match list will be completed for the LWW-Bendix node. The purpose of the analysis and data report creation is that the node is near the LaSalle Square area and will serve to provide information for planning and development purposes in that area. 2. Grocery Store Saturation Study (Citywide) A second component of this proposal is to complete a citywide grocery store saturation study to determine the level of service of existing grocery stores or stores that sell groceries. After the study is completed, we then would have the ability as an alternate item to do a grocery store match project analysis at points that were determined to be What We Do Today Makes A Difference! underserved. A grocery retailer profile report can also be prepared as part of the additional study. ~ Work item 2 -The second element is to complete a Grocery Store Saturation Study. Upon conclusion of the study, it will be determined if specific site analysis should be completed. 3. Scout program When the City completed the first Buxton project in 2006, all information was delivered in a binder in a paper format. Later in 2006, information Buxton started to shift to a .pdf format so that the data packages were more manageable and could be more easily shared with prospective clients. Over the last several years, Buxton has developed a web based interface for data management called Scout. Scout is not only a tool for the city to manage the Buxton data, but through specialized access protocols, Scout could be shared with interested commercial prospects as well as existing businesses in the city. Because Scout is a GIS-interface program, information about City owned properties, TIF areas, project area work plans or incentives, or a variety of other business assistance work product could be managed from this toolset. The Scout upgrade would be done as part of the refresh from this project. A yearly maintenance fee of $12,000.00 ($1,000/year) is required to maintain this service if it is deemed useful and necessary. ~ Work item 3 -The third element is to work with Buxton on the integration of alf data and local relevant data sets into the Scout program Proposal Budget The proposal budget, found on page 26 of the proposal, is broken out as follows: 1. CommunitylD Refresh - $10,000 New CommunitylD Site - $30,000 (LaSalle Square site) 2. Grocery Store Saturation Study - $5,000 Alternate 1: Match Grocery Stores to Selected Sites - $3,000/site Alternate 1A: Marketing packages for individual grocers - $1,500/package 3. Scout - $0 (part of refresh price) Total Proposal Amount: $45,000.00 Staff would fund this work through a combination of SBCDA and AEDA funds based on a assignable work. Staff would also request the ability to do up to three Grocery Store site selections (Alternate 1) depending on the findings of the saturation study. Staff would request a total not to exceed budget of $54,000. Staff humbly requests Commission approval. o IDentifying Customers= City of South Bend, IN CommunitylD Proposal Prepared by: Bowie Hogg Expiration Date: June 30, 2010 u~,ton~ IDentifying Customers• June 15, 2010 Copyright ©Buxton Company, 2010. All Rights Reserved. Bu~,~on= IDentifying Customers- SOUtII Bep(~, IN: Commlllli~~ID PiOpOSd~ INDEX I. SUMMARY IL INTRODUCTION TO BUXTON III. NEEDS/CHALLENGES IV. GOALS/DESIRED RESULTS V. PROCEDURES/SCOPE OF WORK VI. PROJECT TEAM VII. PROJECT REQUIREMENTS VIII. TIMELINE IX. FEES FOR SERVICES X. SIGNATURE PAGE XL ENDORSEMENTS/REFERENCES 1 Bu~,ton- IDentifyingCustomers SOUth Bend, IN: CommunitylD Proposal I. SUMMARY CommunitylD is a proven retail development strategy that can be immediately implemented by South Bend. 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 m ain phases of the process are: Researching and Verifying South Bend'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 South Bend's Retail Potential The evaluation phase will clarify what makes South Bend 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 South Bend's Market Potential The consumer profile of South Bend'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 South Bend'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 CommunitylD, South Bend can unleash its full retail potential, seize new retail opportunities and expand existing businesses. 2 Bu~,ton~ IDentifyingCuscomers SOUth Bend, IN: CommunitylD Proposal 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 c ommunities desiring retail expansion. Please note that in this proposal the term "retail" is inclusive of all retail concepts. CommunitylD Designed specifically for use in community economic development programs, Buxton's CommunitylD 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 economi c 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 brokers. CommunitylD 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. Th e combination of technical expertise and professional guidance gives municipalities the capa city to immediately implement an effective retail development program. Benefits of CommunitylD With CommunitylD 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 Bu~,ton~ IDentifyingCustomers SOUth Bend, IN: COinlriunltylD Proposal • Proprietary Systems. Gather useful information by having Buxton's technology specialists analyze your trade area a ccessing data stored 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 (ICSC) annual meeting in Las Vegas, NV. Additionally a Buxton representative 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~,ton~ IDentifying Customers SOUth Bend, IN: CommunitylD Proposal III. NEEDS/CHALLENGES South Bend 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, accura to and up-to-date. Using 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 useless without a plan for using it. Much more than data collection, CommunitylD is an execution strategy that can help you build or revitalize your existing marketing and economic development program. With CommunitylD, you will be prepared to: • Achieve your retail potential by establishing along -term partnership with Buxton • Integrate retail development into your economic development program • Increase your success by preparing South Bend to meet the needs of retailers • Effectively position your community by leveraging your locations' strengths and minimizing weaknesses • Convey South Bend'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 I~u~,~on IDentifyingCustomers SOUth Bend, II~T: COIIll7lunltylD Proposal IV. GOALS AND DESIRED RESULTS The primary goal of Community ID is to prepare South Bend to successfully expand its retail sector. CommunitylD 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 results: • 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 • South Bend's ability to capture other econo mic opportunities will be enhanced 6 Bu~,ron IDentifying Customers SOUth Bend, IN: CommunitylD Proposal 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 results. 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 South Bend's retail opportunities Staff Visits During visits to the community, Buxton's staff is able to make clear and 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 South Bend 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 ca ses, every month. Although 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 South Bend'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 Bu~,ton~ IDemifyingCustomers SOUth Bend, IN: CommunitylD Proposal 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 insi ght in these four areas: 1. Researching and verifying South Bend's retail trade area 2. Evaluating South Bend's retail potential 3. Matching retailers and restaurants to South Bend's market potential 4. Delivering South Bend's marketing packages These four major components comprise the Community ID® process. Each component is explained in detail as follows: 1. Researching and Verifying South Bend'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 CommunitylD process for South Bend 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 South Bend, in the trade area and in any neighboring communities that impact on South Bend'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 identific ation of market influencers. 8 ~u~,ton~ '°g"~y'"gc°5`°'"en South Send, IN: CommunitylD Proposal Drive-Time Trade Area Definition Customers today shop by convenience, measuring distance based on time, not mileage. CommunitylD will employ a custom drive-time analysis to determine South Bend's trade area. An example of a drive-time trade area is shown in Figurel. 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 1.Example -Drive-Time Trade Area I~u~,ton IDentifyingCustomers SOUt}1 Bend, 1N: CommunitylD Proposal 2. Evaluating South Bend's Retail Potential The purpose of the evaluation. phase is to understand what makes South Bend 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 national/state 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 South Bend 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 dol lars 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 illustrates 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 a re being spent outside the trade area (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~ I~entifyingCustomers~ SOUth Bend, IN: CommunitylD Proposal Figure 2.Example -Sale Gap Index Customer Profiling The CommunitylD process will identify and analyze all the households in South Bend'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 ~u~,ton~ IDmtifyingCustomers SOUth Bend, IN: CommunitylD Proposal Figure 3: Example -Psychographic Profile Pwentlal LooUw~ Retail Site Assessment Buxton will analyze one (1) distinct retail location, selected by South Bend. Based on our collective experience in retail locations, the following factors are considered: • Psychographic analysis of households in trade area Psychographic analysis of workers in trade area • Demand for retail goods and services • Site setting, situation and configuration • Growth plans and relevant development • Retail goals of the community Workplace Profile 2 minute and 10 minute Regular Household Analysis 2 minute and 10 minute Leakage and Surplus Report for 2 minute and 10 minute CPR Report for 2 minute and 10 minute. Buxton will develop a demand density profile of South Bend'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 South Bend's strengths and to achieve its retail goals. 12 Bu~,~on~ ~oantifyfngcustomers South Bend, IN: Communi ID Proposal 3. Matching Retailers and. Restaurants to South Bend's Market Potential Once the site for retail matching has been selected and the consumer profiles in South Bend's trade area have been determined, the Community ID process will match these profiles against the customer profiles of 5,0 00+ 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 South Bend. 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 wil 1 be discussed and reviewed with South Bend. All retail matches will be available to South Bend with the ability to select ten (10) specific retailers for contact information . 13 Bu~,~on '°e"~'y'"gc°S~°mers South Bend, IN: CommunitylD Proposal Figure 4: Example -Trade Area Consumers Matched with Retailer Customer Profile O hZ ComFan~~ Pote~rtial ILCation 4. Delivering South Bend's Marketing Packages Buxton will assemble individualized marketing (pursuit) packages for each targeted retailer. At South Bend'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 South Bend'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 CommunitylD targets not only specific companies but also the individual in the company who has the responsibility for locatio n decisions. To provide the best possible reception when South Bend contacts the targeted retailer, Buxton notifies each company that South Bend 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~ IDentifyingCustomers ~OUt}l Bend, IN: CommunitylD Proposal Figure 5: Example -Retail Match Report (Retail Match Report summarizes a city's location advantages for a specific retailer). ~ CommunitylD ionpanr: Rrrarer %Y: ite. W' 6EE,41' d il~il'E441"f Arpor? Uaer !c.r famrr.ntt;, JSA Profile Match Report i~ a is a E ' 0 U e , Segmentatwr Pro`i eE~f;! Pin~te Urve TtrnejHl - ~. TF3f': 7'O'I? ~Cdf" i naf' ~E3nef:5 ~- ®.~.OT 73n~' Gr.llle ':JI Ch=r ~+yn=f'S - ,:c 7ro1a •~ Trade Arez ternparisen ~,1 Mnute Drr:e T ne+ four Eommunrr. USA Pctxdc• X i Stre ?rate Area 4•era7r ~-ace Ara' L.rrre ~re;eued Total Population 96,039 128, 139 135,133 Total Households 36,790 45,799 49,573 Company Dominant Segment Households 22,122 33,871 36,662 ~^ tiepmenlat on Pro111e Evey L 5, a]asea] a Is c az:lreC rx cae Y SC Qs7a1 r_Ter!ts eez:ntr] ~, tea: ra.Yatv7a 1'est~+e aai sDex+np aata~s '~DrheTrne 7-t.e :me l: u.ecbYre Vle ~a]e er_a +a Dam rsieANmenh .Vyse]^+er~7al mar~.c ar~istixr_e~t o'aT.a:~7s oar.-]DrJ'fk PE e~-,.. w i:a PrcNk Ta]:e secmeaL• nr.~r tae :Ite t. crve^me ~a]e sea ;GLUE LINEI. ~ Aiarape Trace Area nea re-XYL TaX armz u:ea t Tr: eredr:er are s-I ar is a;•Jren en] TYLN pce tc vo_r :n-runY,•, U5~ 15 Bu~,ton~ IDentifyingCustomem South Bend, IN: CommunitylD Proposal Consumer Propensity Report Marketing and Merchandising Intelligence for Local Business The Consumer Propensity Report (CPR) shows the lifestyle, product, and psychographic likelihood indices for the consumers within the trade area being analyzed. Major retail, restaurant, grocery, and consumer packaged goods firms use this very same information to drive marketing and merchandising decisions. Each analyzed item is assigned a propensity index score with 100 being average. For example, if the consumers within a trade score a 120 for a given analysis item you know that those consumers are 20% more likely to participate in or purchase that item than the average American household. A propensity index score of 80 would indicate that those consumers would be 20% less likely than the average American household to participate in or purchase that item. Information is provided for 32 major categories with over 4,800 total line items. Please note that line items are based upon national -level purchasing and lifestyle characteristics. These line items are then correlated to the under lying household characteristics of the consumers within the trade area being analyzed. Some line items may not be necessarily relevant or available currently in your market or region. The index score in these situations serves to indicate the degree to whi ch the consumers would participate in or purchase that item if it were relevant and available. Often this is taken as an opportunity for expansion of a similar brand or concept within the category. CPR Categories Apparel Automotive Beverages: Alcoholic Beverages: Non-alcoholic Cable/TV/Radio Cleaning Products Computer/Internet Dining Electronics Entertainment/Leisure Financial Services Food: Baking Food: Condiments Food: Dairy Food: Frozen Food: General Food: Meat Food: Snack/Dessert Health and Beauty Hispanic: Spanish Media Hispanic: Demographic Home Furnishings/Appliances Home Improvement Household Products Lawn and Garden Lifestyle Statements Medicines/Drugs/Ailments Pets and Pet Food Print Media Shopping Telecom Tobacco 16 I~u~,ton~ '°~tay~"gc°S`°men South Bend, IN: CommunitylD Proposal DELIVERABLES CommunitylD deliverables will be presented to South Bend 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 CommunitylD by enabling you to showcase your best retail site to achieve maximum results. You can access CommunitylD reports via SCOUT to reproduce maps, site-specific data and generate your own custom marketing presentations. With SCOUT you are directly tied to South Bend 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 specific target retailers • Create aLeakage/Surplus Analysis report for any location in your community • Manage all your retail-specific data, from maps to photos to zoning information, in a centra l location • Merge your community's existing marketing materials with CommunitylD • 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 developers Beginning in the third year, a complete refresh will be provided using updated data. Deliverables 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 17 Bu~,ton~ IDentifyingCustomers SOUth Bend, IN: CommunitylD Proposal • An electronic presentation highlighting the Community ID process and findings will be a part of the deliverables. It is designed for local presentations to chambers of commerce, civic clubs and other groups interested in the retail development of South Bend. Grocery Store Saturation Study Business Question South Bend Wants Buxton to Answer 1. What is the degree of saturation at the household level for grocery store coverage within South Bend? 2. What specific grocers can be identified to fill the holes in grocery coverage that may be identified within South Bend? Strategic Goals South Bend Wants Buxton to Help Achieve Ensure that neighborhood s within South Bend have adequate access to grocery stores. 2. Market potentially under-saturated neighborhoods to grocers that best fit the consumer profile of that neighborhood's trade area. How to Utilize Buxton Solutions to Answer the Questions A bove and Achieve Goals Buxton will build a Grocery Store Saturation model to score all households within South Bend. The model will factor the coverage of existing grocery store trade areas and overall household density. The results of this model will b e indexed. Each household will have an index reflecting its degree of saturation, high to low. The index scores will be used to thematically map South Bend's overall saturation levels thereby revealing areas or neighborhoods that are proportionally under -saturated by grocery stores. 2. Under-saturated areas can be further analyzed to identify the best potential grocers to recruit to infill the market. In this analysis Buxton will develop trade areas consumer profiles for the under -saturated areas. These trade area consumer profiles will be matched against the trade area 18 Bu~,~on= '°rncHyi"gc~~men South Bend, IN: CommunityID Proposal consumer profiles for any and all national or regional grocers with expansion plans in South Bend's market. Deliverables 1. Grocery Store Saturation - a 36"x48" thematic map, as well as an electronic copy of this map. 2. Trade Area Consumer Profile Matching to Grocery Concepts -Report to include details on trade areas and consumer profiles. Excel spreadsheet of all grocers matching the trade area consumer profile. Option to receive recruitment packages for selected matching grocers. Timeline 1. Grocery Saturation Model -10 business days 2. Trade Area Consumer Profile Matching to Grocery Concepts -10 business days post Grocery Saturation Model review. 3. CommunityID Refresh(Previous SouthBe nd Site) - 60 Business Days 4. CommunityID New Site - 60 Business Days Cost 1. Grocery Saturation Model - $5,000 2. Trade Area Consumer Profile Matching to Grocery Concepts - $3,000 per siteFor Each Additional Site Beyond 1 Provided with CommunityID) . Option for recruitment packages is $1,500 per grocer (Related to option of optional sites). 3. CommunityID Refresh of Previous Site - $10,000 4. CommunityID New Site - $30,000 19 Bu~,~on~ IDentifyingCuscomers- SOUth Bend, IN: CommunitylD Proposal VI. PROJECT TEAM Team members for your project will include Buxton personnel with strong re tail and economic development backgrounds as well those from operations: the Territory Business Manager, Senior Vice President, Operations representative and Client Services representative. Bowie Hogg Territory Business Manager CommunitylD Division As a CommunitylD territory business manager, Bowie works with proactive cities to recruit retailers to their trade area. He works with communities to maximize their ability to generate sales tax revenue and enhance quality of life for their citizens by successfully recruiting new retailers as well as maximizing current retail options. Bowie works with a variety of civic leaders within communities to create successful partnerships with Buxton. His focus includes communities in Ohio, Indiana, West Virginia a nd Pennsylvania. Bowie received his B.A. degree from Texas A&M University and is a member of International Council of Shopping Centers (ICSC). Buxton has worked with more than 450 communities nationwide, helping recruit over 20 million square feet of retail. Chip Rodgers Senior Vice President, CommunitylD Division 20 I~u~~~on~ '°~,t~~^g c°S~°mers South Send, IN: CommunitylD Proposal 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 service 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. ~. .~ Philip Davis Manager/Senior GIS Analyst As senior analyst for the Community ID division, Philip oversees every aspect of CommunitylD projects in Buxton's GIS department. His duties include 21 Bu~,~on IDerrcifyingCustomers SOUth Bend, IN: CommunitylD Proposal supervising daily operations, working with clients, managing projects and serving as a liaison between analysts and the sales team. Philip has managed the GLS 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. Briggs Director of Client Relations CommunitylD Division As director of client relations for the CommunitylD 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 CommunitylD, CustomerlD and HealthcarelD 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. 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 recognized 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. 22 Bu~,ton~ io~,t~y~~gc~:comers South Send, IN: CommunitylD Proposal Bill R. Shelton, CEcD Partner CommunitylD Division Bill is a founding partner of CommunitylD, 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 Ec onomic Development Council. A founding member of the Texas Economic Development Council, he has served as the organization'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 bachelor'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 grew 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. 23 Bu~,~on- IDentifyingCustomers South Bend, IN: CommunitylD Proposal VII. PROJECT REQUIREMENTS To effectively initiate this project, we request that you provide the following: 1. Project Liaison • South Bend 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 • List of planned retail, commercial or m fixed use (either proposed or in development) in the community • List of major, national or regional retailers that have closed, left or moved from the community • General community marketing materials, data and economic reports Project Launch A conference ca 11 with representatives of South Bend and the Buxton Project Team will officially launch the project. The project launch will occur when: 1. An agreement is executed 2. The initial payment is received, and 3. The Community Information and Reports are re ceived 24 Bu~,ton~ ~oentifyingcustomers South Bend, IN: CommunitylD Proposal VIII. TIMELINE The following timeline is sequential and cumulative. It starts on the day of the project launch conference call. Business Days Client Responsibilities Buxton Responsibilities Start Provide to Buxton all necessary community information. Day 1 Participate in the launch call. Participate in the launch call. Day 6 Trade Area Map post to SCOUT. Day 13 Approve Trade Area Map. Day 18 Retail Site Assessment post to SCOUT. Day 25 Approve Retail Site Assessment Day 40 Retail Match List post to SCOUT. Submit selections of all retail Day 50 matches to be included in the Retail Marketing Packages. Day 60 Retail Marketing Packages post to SCOUT. By adhering to this timeline, the Community ID deliverables (Retail Match Reports) will be sent on or before 60-days after the launch date. Any missed target dates can delay the final delivery date. If there are extenuating circumstances that prevent target dates from being met, a new timeline will be developed. Delays of more than 45 days in timeline schedule by the community will result in an administrative fee of five percent (5%) of the contract price to be charged. 25 Bu~,~on= IDentifyingCustomerr SOUth Bend, IN: CommunitylD Proposal IX. FEE FOR SERVICES L The Cost of Proposed Services including CommunitylD is $45,000. The $45,000 price includes the Grocery Store Saturation cost of $5,000, CommunityID refresh of previous site for $10,000 and new CommunityID site of $30,000. These services may be purchased individually. The cost of additional sites relating to grocery store matching will be $3,000 per site and then $1,500 per marketing package for each concept. 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. South Bend may cancel SCOUT at any time with thirty (30) days written n otice. Direct travel costs will be charged for any pre -arranged, mutually agreed upon travel associated with the project. This does not include travel associated with the presentation or negotiation of this agreement. 26 Bu~,ton IDentifyingCustomers SOUth Bend, IN: CommunitylD Proposal X. SIGNATURE PAGE This agreement is between South Bend 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 South Bend for any purpose. This agreement maybe terminated by South Bend 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 interprete d under the laws of the State of Texas. In order to avoid paying State of Texas Sales and Use Tax, South Bend maybe required to provide Buxton with a certificate indicating it is a non -profit corporation and not subject to Texas Sales and Use Tax. Agreed and accepted this City of South Bend 1200 County City Building South Bend, IN 46601 day of 2010. David Glover Chief Financial Officer Buxton 2651 S. Polaris Drive Fort Worth, TX 76137 o~~l- (Signature) (Signature) 27 Bu~~~on '°~,t~y'"gc"n°mers South Bend, IN: Communi ID Proposal XI. ENDORSEMENTS/REFERENCES Buxton prides itself on exceptional client service that results in ongoing client satisfaction. Following are just a few of many endorse menu from CommunitylD 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 JolTnson City-Kingsport-Bristol CSA (combined statistical 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 n 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, zve were very satisfied. We were initially disappointed that Buxton did not identify some of the retailers zve 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 amarket-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 com plete overhaul of our mall (wwu~.kingsporttoun~centcr.com ), where private investors are taking it from an appraised tax value of $33 million to $92 million. While all of it ca~rnot be specifically attribute d to Buxton, it was certainh/ an integral part of the success. So, yes it was worth t12e money. We have landed Target, Kohl's, Old Navy, Dress Barn, Lifeway, Shoe Carnival, Maurices, Midiaels, Books-A-Million, ULTA, Dick's Sporting Goods, Best Buy, Tomy Thai, Batteries Plus, Ritz Camera, McAlister's, Hobbit 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? 1 z~~ouldn'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 28 ~u~,ton~ IDentifyingCustomers SOUth BenCl, IN: CommunitylD Proposal week's worth of 1 staff person's time (mine). Probably the most difficult process was deciding the beginning point for the analysis. We were hypersensitive about favoritism among competing sites. After the analysis was complete, was it easy to set up appointments w ith 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 tenants. The tenant received individual letters from both GGP and 1. 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 t1Te 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, theta were great. They were very patient acid helpfill. As I said, they really helped us wit11 a reality check without making tts feel dumb! Have you used SCOUT and is it easy to produce documents? Yes acid yes. I have also used it for non -retail projects. For example, we are siting an aquatic facility and I used some of the demographics 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? Absoluteh/. I have been veri/ pleased. 29 Bu~,~on= '°e"~'y~"g c°SLOmers South Bend, IN: CommunitylD Proposal South Bend, IN -Bill Schalliol, Economic Development Planner Did you go through an RFQ process? No. I met Buxton reps at the ICSC Spring Convention and my Mayor met Buxton reps at a regional ICSC event and we both w ere impressed with the services they offered and entered info 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 Buxt on zoos 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 them 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??" 1 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 deliverables 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 oiir 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. Wl1en we first started the process, we thought we were buying a product (and we did), but we also bought a r elationship 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 Tio and it is really no fault of Buxton's. As I have learned from the user connnunity, everyone goes through the process for different reasons and uses the data for different purposes. We didn't really thi~ik through how we would use the data, so we struggled with things once we got our deliverables. But because Buxton lTas learned from communities like ours, they have created a very helpful user network to put communities in touch with other 30 Bu~,~on= IDentifying Customers South Bend, IN: CommunitylD Proposal communities. If you sign with Buxton, people all over the country are using this data and can help guide you. Did you hire a fulltime recruiter or did you handle the target contact with in -house staff? In addition to doing retail development, I do property acquisition, demolition coordination, anal many other things. Once we realized we had all of this great information and had cco 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 thetj have bee n 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 person ha ve? 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 b uilt nezv construction or have become tenants in nezc~ 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 zvas a bit diffe rent. Our market is a pretty cor~cmercial 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 timelin a 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 thoug)Tt through the process a bit better. The advantage that new users to the Buxton process have is the experiences and 31 Bu~,~on~ '°encffy~"gc°SL°mers South Bend, IN: CommunitylD Proposal successes/failures of those that have come before them. Get involved through the Buxton process and it will work well for your community. 32 Bu~,~on= IDentifyingCustomers SOUth Bend, IN: CommunitylD Proposal Rochelle, IL -Peggy Friday, CommerciaURetail Development Coordinator The value of the CommunitylD Study is being r ealized each time zoe 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 addition 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 and t he 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 ou t 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. 33 I~u~,~on~ i°~,t~~^gc°SLOmen South Bend, IN: CommunitylD Proposal 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 CommunitylD report has been tremendous for Pinetop - Lakeside. We met with several of the retailers identified btu 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 report 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 tune to updat e 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 ot~ir 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 money 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 a vailable 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 thetf listen. If you've been successful, or if your answer is no so far, do yo u know if other re#ailers are seriously considering your trade area because of this process? Buxton isn't the only answer to recruiting retail to your commtnity. 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 cotnpleted an econotic development DVD along with community tip sheets that are also being sent to the retailers Buxton identified. It's mz ongoing process. If I ever have any additional questions about a certain retailer not identified by Buxton I can call my represe~ltative and you can rest assured I will have a call from hire before 1 hang up t11e telephone. The process is lengthy...rneetings, 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. 34 Bu~,ton~ IDentifyingCustomers SOUth BenCI, IN: CommunitylD Proposal How aggressive have your local recruitment efforts been since receiving Buxton '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 arTd they increased my operating budget th i<s 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. 35 Bu~,~on~ IDentifyingCustomers SOUth B2nd, IN: Communit}r1D Proposal 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 almosf 38,000 residents and are small, 11.2 square miles, contiguous to and surrounded on three sides by Dallas. We are what is knozzm 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 nezv developments. Our most recent project success involves a 150,000 square foot Costco Club Warehouse, and amixed -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 zohich 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 zve 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 ComnnnurzitylD product, we asked them to review an incentive request we received from a developer fora 50 acre power center. We had never given retail an incentive at that time. Buxton's help with that project saved zns $750,000 in incentives and t11e 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, zve 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 sonnething similar. What was the most important thing(s) you got from the study? We learned a lot about retail recrT-fitment. The information was helpful in putting together our marketing pieces to distribute at ICSC (International Conferenc e of Shopping Centers). We also learned the types of retail Denton could expect to recruit. 36 Bu~,~on~ IDentifyingCustomers SOUtI1 B2nC1, IN: ComrriunitylD Proposal 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 ICSC trade show. They also let us display our brochures at their booth at ICSC. 37 Bu~,~on IDentifyingCustomers SOUth Bend, IN: CommunitylD Proposal Cupertino, CA -Kelly Kline, Redevelopment/Economic Development Manager Is there an estimated or "ballpark" retaiUcommercial 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 o r 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 Citt~ Council may begone! This money must be viewed as a long-term investment. • Sometimes deals go curry based on market conditions. 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 then 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 zoere on our matclT list, and that there is significar2t leakage in this category. This data made them decide to give us a second shot. They are now going to increase their marketing efforts a nd 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 extend ed conversatior2s with retailers who had previously been "lukewarm", and has provide value to me in so many wars that I can't keep count. Buxton is my partner in retail recruitment. This needs to be viewed as a holistic and powerficl tool for your progra m. 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 ope~iing - 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, 38 Bu~,~on '°e""h''"gc"5`°mers South Bend, IN: CommunitylD Proposal and that they are serious about their recruitment efforts. A relationship with Buxton sends a very strong message to the retail community. 39