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HomeMy WebLinkAboutIL143 Interlocal Agreement INTERLOCAL AGREEMENT Regarding Joint Contract with Buxton® Between THE CITY OF ANACORTES, a municipal corporation of the State of Washington ,.. THE PORT OF ANACORTES, a Washington municipal corporation c , =5 . mom ' and SKAGIT COUNTY PUBLIC HOSPITAL DISTRICT NO. 2, a Washington municipal corporation and a 501c3 L i 1 i ......., ,, HOSPITAL INTERLOCAL AGREEMENT REGARDING JOINT CONTRACT with Buxton® THIS AGREEMENT (the "Agreement"), dated this day of November, 2011, is made pursuant to Ch. 39.34 RCW, by and between the CITY OF ANACORTES, a Washington non- charter code city (the "City"), the PORT OF ANACORTES, a Washington municipal corporation (the "Port") and the SKAGIT COUNTY PUBLIC HOSPITAL DISTRICT NO. 2, a Washington municipal corporation (the "Hospital"). The City, the Port, and the Hospital are collectively known as the "Parties". WHEREAS,. the City, the Port, and the Hospital have jointly decided to come together for the mutual benefit of enlisting the services of Buxton®to perform innovative and disciplined approach to economic development, particularly municipal retail development efforts; and WHEREAS,the City has authority pursuant to RCW 35A.11.020 and RCW 35.21.703 to engage in programs of economic development; and WHEREAS, after an extensive Anacortes Futures Project process involving the public and various business interests, the final report supports the need to create jobs and provide for a divers economy; and WHEREAS, continued support, recognition, and encouragement of the Steering Committee of the Anacortes Futures Project recommendation is a critical element in successful implementation of its recommendation; and WHEREAS, a successful economy requires creating creative partnerships between the parties now and in the future. Success can be realized more quickly when these parties agree to partner and provide their expertise and experience; and WHEREAS, joint cooperation and efforts of the parties will make it economically necessary to be able to enlist the services of Buxton®;and WHEREAS, the parties recognize that the information provided from the reports generated from the services provided by Buxton®benefits the economic and social welfare of the community and businesses. NOW THEREFORE, for and in consideration of the mutual terms and conditions contained herein, the City, the Port, and the Hospital hereby agree as follows: 1. Delivery of Product. The Parties hereby by signing the Interlocal Agreement acknowledge that they have read and understand the terms of the proposal submitted by Buxton®(Lisa Hill — Expiration date of November 23, 2011), including dates of delivery identified on page 32 of the proposal. The proposal is attached as Attachment A. 2. Payment. The Parties hereby understand that Buxton®will bill each organization separately for its portion of the payment, which is one quarter of the actual cost. No party shall be liable for the failure of another party to pay its share of any billing. It is also understood that the Anacortes Chamber of Commerce will enter into a separate agreement to pay for one quarter of the actual cost as well. The fees for this service are outlined on page 34 of Attachment A. A summary of the maximum fees is as follows. • $30,000 invoiced upon execution of this agreement with expiration date set to timely collection of separate entities defined by the City. • $10,000 invoiced upon delivery of retail site assessment& industrial insights ➢ $10,000 for Scout access (one year) Total Cost of the project is $50,000 (The actual cost assigned each party shall not exceed $12,500, plus any additional services requested by a party). The foregoing price includes these waivers: Consumer Propensity Report cost of$5,000 is waived if executed by November 30, 2011 and 8 week updates will be included for agreement period. Hospitality Analysis cost of$5,000 is waived i_f executed by November 30, 2011 and annual updates included for agreement period. SCOUT will be delivered for one year with this agreement. Optional Services (months 12+) • SCOUT only $1,250 per month* • Fees cover annual access for 1 SCOUT user. Each additional SCOUT user incurs an annual fee of$3,000 • After month 12 Anacortes can cancel SCOUT at any time with 30 days notice. *After the first year there will be a $1,250 per month SCOUT maintenance fee. The second year begins upon completion of the project.Anacortes may cancel SCOUT at any time with thirty(30)days written notice. Any other services which are not in this contract but are desired by any party to this agreement will be solely responsible for the cost and the remaining party(ies) are not obligated to contribute. 3. Administration and Notice. The following individuals are designated as representatives of the respective parties. The representatives shall be responsible for administration of this Agreement and for coordinating and monitoring performance under this Agreement. In the event any such representative is changed, the party making the change shall notify the other party. All notices, demands, requests, consents and approvals which may, or are required to be given by any party to any other party hereunder, shall be in writing and shall be deemed to have been duly given if delivered personally, sent by facsimile, sent by a nationally recognized overnight delivery service, or if deposited in the United States mail and sent by registered or certified mail, return receipt requested, postage prepaid to: City of Anacortes: City of Anacortes ATTN:Steve Hoglund, Finance Director P.O. Box 547 Anacortes, WA 98221 Port of Anacortes: Port of Anacortes ATTN:Robert W. Hyde, Executive Director First and Commercial Post Office Box 297 Anacortes, WA 98221 Island Hospital: Island Hospital ATTN: Vince Oliver, CEO 1211 —24th Street Anacortes, WA 98221 or to such other address as the foregoing parties hereto may from time-to-time designate in writing and deliver in a like manner. All notices shall be deemed complete upon actual receipt or refusal to accept delivery. Facsimile transmission of any signed original document and retransmission of any signed facsimile transmission shall be the same as delivery of an original document. 4. Dispute Resolution. The Parties shall attempt to resolve all claims, disputes, and other matters in question arising out of or related to this Agreement, first through informal discussions and then through formal written notification and cure, before resorting to arbitration or litigation. Any remaining disputes between the parties hereto shall be resolved by binding arbitration. The parties shall have ten (10) business days following a written declaration of impasse on the informal discussions by any party to agree to an arbitrator. If they are unable to agree, the arbitration shall be conducted by the American Arbitration Association in the City of Anacortes pursuant to its expedited commercial arbitration rules. Administrative fees and the arbitrator's fees shall be shared equally by the parties in arbitration and the prevailing party shall be awarded its reasonable attorney fees and costs. The parties' right of appeal shall be as set forth in RCW 7.04A.200. 5. No Entity. The parties acknowledge and agree that no partnership or other entity is formed hereby. 6. Term. This Agreement shall be effective when signed and notarized by the duly authorized governing bodies of the City, the Port, and the Hospital and remain in full force and affect until for one (1) year modified or tezuninated by mutual agreement of the Parties. This agreement shall automatically renew unless a party gives notice of its intent to discontinue the agreement at thirty days prior to expiration of the initial or any subsequent term. 7. Property. The parties shall not jointly acquire any real or personal property pursuant hereto. 8. Waiver. No failure by the parties to insist upon the strict performance of any term or condition of this Agreement, or to exercise any right or remedy upon a breach thereof, shall constitute a waiver or breach of any other term or condition of this Agreement. 9. Governing Laws. This Agreement and the rights of the Parties hereto shall be governed by and construed in accordance with the laws of the State of Washington. 10. No Third Party Beneficiaries. This Agreement is intended to be enforceable only by the City, the Port, and the Hospital. There are no third-party beneficiaries to this Agreement. 11. Entire Agreement. This Agreement contains all terins and conditions agreed upon by the parties. All items incorporated herein by reference are attached. No other understandings, oral or otherwise, regarding the subject matter of this Agreement shall be deemed to exist or to bind any of the parties hereto. 12. Modifications. This Agreement may be amended and modified by a written agreement signed by the Parties, in the same manner as the signing of the original Agreement. 13. Severability. In the event any term or condition of this Agreement or application thereof to any person or circumstances is held invalid, such invalidity shall not affect the enforceability of other terms, conditions or applications of this Agreement and the parties will reasonably cooperate to modify this Agreement to achieve the purposes set froth herein. 14. Execution. The persons signing below represent and warrant that they have the requisite authority to bind the Party on whose behalf they are signing. IN WITNESS HEREOF, the Port and the City have caused this Agreement to be executed in their names and to be attested by their duly authorized officers this 1� day of November, 2011. CITY OF ANACORTES By: 1 . 7,1407(0-1/ Signature H. Dean Maxwell, Mayor Date: fl//y/r� PORT OF ANACORTES By: 1 ignature ob Hyde -cutive Director Date: ISLAND HOSPITAL By: �‘,.._ Signature Vince Oliver, CEO Date: `\_\\Cs) \\ ATTEST: Steve D. Hoglund, City Clerl/Treasurer APPROVED AS TO FORM: By: Bradfor . Furl g, WSBA# 12924 City ttorney ACKNOWLEDGEMENT STATE OF WASHINGTON ) ) ss. COUNTY OF SKAGIT ) On this /L day of f Dit.e rryv it, 2011, before me, the undersigned, a notary pu is a and for the State pf Washington, duly commissioned and sworn, personally appeared C, Ji-€c In in a y G o Q. I( of the City of Anacortes, and the individual described in and on behalf of said City, and acknowledged that he, as such officer, signed the foregoing instrument as the free and voluntary act and deed of the City of Anacortes, and further stated to me that they were authorized by the City Council of the City of Anacortes to execute the foregoing instrument for and on behalf of said City of Anacortes. WITNESS my hand and official seal hereto affixed the day and year first above written. 60„ v►uaomyfR ;I% 0:iiiLt9' At V4J' {s ig n d na m e of notary) it:a:'�� -`'`� 0° (printednam eofnotary)C il`e if(/ ( , Ans w Notary Public in and for the it 4A t4 State of Washington +iii%m Residing at rn a - t4 ip G 0 My appointment expires I 0--Icj'/ ACKNOWLEDGEMENT STATE OF WASHINGTON ) ) ss. COUNTY OF SKAGIT ) On this i day of Aid41,14-6 , 2011, before me, the undersigned, a notary public in and for the State of Washington, duly commissioned and sworn, personally appeared Robe-rf ul, f-,,de_, of the Port of Anacortes, and the individual described in and on behalf of said Port, and acknowledged that he/she, as such officer, signed the foregoing instrument as the free and voluntary act and deed of the Port of Anacortes, and further stated to me that they were authorized by the Port of Anacortes Commissioners of the Port of Anacortes to execute the foregoing instrument for and on behalf of said Port of Anacortes. WITNESS my hand and official seal hereto affixed the day and year first above written. �: ' vf• t�- F3odd (sFgned name of notary ) y) its k y JI, ierlrtA- t • se w , (printed name of notary) Cs g.r Notary Public in and for the L �,��,� �,�� ��'�► � State of Washi gton 4 oa�ases,i::1�•` ��^.6" Residing at A/44 a d+aes /4- %I�1 My appointment expires 17-/--I, - ACKNOWLEDGEMENT STATE OF WASHINGTON ) ) ss. COUNTY OF SKAGIT ) On this 0--h day of ov lj , 2011, before me, the undersigned, a notary Vulic in and forrt,he State of Washington, duly commissioned and sworn, personally appeared j n(;, e.,, V\,L (),A/ of Island Hospital, and the individual described in and on behalf of said Hospital, and acknowledged that Yshe, as such officer, signed the foregoing instrument as the free and voluntary act and deed of the Island Hospital, and further stated to me that they were authorized by the Island Hospital Board of Commissioners to execute the foregoing instrument for and on behalf of said Island Hospital. WITNESS my hand and official seal hereto affixed the day and year first above written. T 7,.. ;."'-F``'";' (sign ame of notary) NINES. �=� f�`iFAD V____, �� NOTARY PUBLIC ki'vyk. � STATE OF WASHINGTON (printed name of 17,10.:A.IL)SION EXPIRESnotary) GST 21, 2014 Notary Public in and for the """'� State of Washin on Residing at n c�wi P Myappointment expires - 1 pp p Attachment A M �1 j �:y' Ery iDenti�ri ustomersg City of Anacortes, WA Community�D Proposal Prepared by: Lisa Hill Expiration Date: November 23, 20I1 November 3, 2011 INF Copyright c0 Buxton Company, 2010. All RightsReserved. JDentifying Customers" 7d10 IDentifying Custarrzers� A tacortes,WA: CorrunityID Proposal INDEX 1. SUMMARY II. INTRODUCTION TO BUXTON III. NEEDS/CHALLENGES IV. GOALS/DESIRED RESULTS V. PROCEDURES/SCOPE OF WORK VI. HEALTHCARE ANALYSIS VII. PROJECT TEAM VII. PROJECT REQUIREMENTS IX. TIMELINE X. FEES FOR SERVICES XI. SIGNATURE PAGE XII. ENDORSEMENTS/REFERENCES I 11. JDentifying Customers, Anacortes,WA: CornmunitylD Proposal I. SUMMARY CommunitylD is a proven retail development strategy that can be immediately implemented by Anacortes. Buxton integrated proprietary technical capabilities with more than 500 cumulative years experience in retail management and local economic development to create CommunitylD. 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 CommunitylD, civic leaders are actively involved in the process and make important decisions that guide the direction and results. The four main phases of the process are: Researching and Verifying Anacortes'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 Anacortes's Retail Potential The evaluation phase will clarify what makes Anacortes 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 Restaurants to Anacortes's Market Potential The consumer profile of Anacortes'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 Anacortes'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 CommunityID, Anacortes can unleash its full retail potential, seize new retail opportunities and expand existing businesses. 2 • • -5,:a• )Dentifying Customers^ Anacortes,WA: CommunityID Proposal IL 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 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 35 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, CommunitylD 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. The combination of technical expertise and professional guidance gives municipalities the capacity 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 fL?entifying Customers, Anacortes,WA: CommunitylD Proposal • Proprietary Systems. Gather useful information by having Buxton's technology specialists analyze your trade area accessing 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 two years after project delivery. 4 �. JDentifyIng Customers Anacortes,WA: CommunitylD Proposal III. NEEDS/CHALLENGES Anacortes wants to understand and then capitalize on the retail development opportunities for available retail sites. 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. 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 a long-term partnership with Buxton • Integrate retail development into your economic development program • Increase your success by preparing Anacortes to meet the needs of retailers • EffectiveIy position your community by leveraging your locations' strengths and minimizing weaknesses • Convey Anacortes'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 5 110 IDentifying Customers' Anacortes, WA: CommunitylD Proposal IV. GOALS AND DESIRED RESULTS The primary goal of CommunitylD is to prepare Anacortes 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 • Anacortes's ability to capture other economic opportunities will be enhanced 6 • 1DentifyingCustomers^ Anacortes,WA: CommunitylD Proposal V. PROCEDURES/SCOPE OF WORK Once you have engaged Buxton to work with you in developing CommunitylD, 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 Anacortes's retail opportunities Staff Visits During visits to the community, Buxton's staff is able to make clear and candid assessments of th.e 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 Anacortes 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. 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 Anacortes'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 JDentifying Customers, Anacortes,WA: 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 insight in these four areas: 1. Researching and verifying Anacortes's retail trade area 2. Evaluating Anacortes's retail potential 3. Matching retailers and restaurants to Anacortes's market potential 4. Delivering Anacortes's marketing packages These four major components comprise the CommunitylD process. Each component is explained in detail as follows: 1. Researching and Verifying Anacortes'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 Anacortes 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 Anacortes,in the trade area and in any neighboring communities that impact on Anacortes'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 • 1Denti ying Customers° Anacortes,WA: 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 Anacortes'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. 9 . .45-j,. !DentifyingCustorrsers° Anacortes,WA: CommunityID Proposal Figure 1.Example Drive Ti }me Trade Area ., .4-7-: :-. 'L T - f RHQRAP.-4,1Il�"1.SGE ... f - ,J • f4`ds ' . 3 „, . y: , - L �_ A 3 i F i ,,,,„„ „. ::: ,_, .,T:-:., ,,.x...!., ::, - 4.:z.-- , f ,.. 40R 4.141114:...'*.st":.. A. t�h"4 ( } _'k _ ..._ u `.,. :. Q�TS iA3 yS s 13,40,yrrill*, ,EE 4,: "i1A-... :'-4. 1 ._' .. a i , i.- 2. Evaluating Anacortes's Retail Potential The purpose of th.e evaluation phase i.s to understand what makes Anacortes 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 35 million square feet of new or expanded retail space.We know how to help Anacortes sharpen your retail marketing strategy, aggressively market the city and improve your competitive performance. 10 BUXEtiTI !Denuteng Customers' Anacortes,WA: CommunitylD Proposal 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 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 are 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. Figure 2.Example-Sale Gap Index im ^>5:'i v otloopirovain eutkorromtrExpim 9 a ratiz Customer Profiling The CommunitylD process will identify and analyze aI.l the households in Anacortes'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 11 zAft- fBentifying Customers. Anacortes,WA: ComrnunitylD Proposal households in the United States (as well as up to seven individuals living in each of these households). Each househo • ld 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. Figure 3:Example-Psychographic Profile I! r Potential Location z iiiiiiiiiiii;::;:ii;;! :;::::::::':-'',''':-::-::....-.'7: :.....'. . . 1 . i 3 AI Retail Site Assessment Buxton will analyze up to three distinct retail l.ocations/geographic areas, selected by Anacortes. Based on our collective experience in retail locations, 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 Anacortes to select the retail sites to be used for retail matching. 12 110 JAentifying Customers= Anacortes,WA: CommunitylD Proposal Buxton will develop a demand density profile of Anacortes'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 Anacortes's strengths and to achieve its retail goals. 3. Matching Retailers and Restaurants to Anacortes's Market Potential Once the sites for retail matching have been selected and the consumer profiles in Anacortes's trade area have been determined, the CommunitylD 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 Anacortes. 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 Iocations. Once this analysis is complete, the preliminary list of retailers will be discussed and reviewed with Anacortes. All retail matches will be available to Anacortes for each of the three sites with the ability to select specific retailers for contact information. 13 ,...„ t. „:,), )Dencifying Customers" Anacortes,WA: CommunitylD Proposal Figure 4:Example-Trade Area Consumers Matched with Retailer Customer Profile *„VAN�, L—,company Polenhal,, ,,,, n '....NeirtelY;#:„,,t,,,,g77.4„31-fligkigNIRF.E..-47A-F,F.--..„- ,:::;,::„:::__.„3:.,,..:,.:_,_:° ,;.. :.....:-:::, . i 12 r - .. 4. Delivering Anacortes's Marketing Packages Buxton will assemble individualized marketing{pursuit) packages for each targeted retailer. At Anacortes 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 Anacortes'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 Coin-mum 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 Anacortes contacts the targeted retailer,Buxton notifies each company that Anacortes 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 uxts•1T A JDentiiying Customers TLacortes,WA: Commun>ityID Proposal Figure 5: Example-Retail Match Report(Retail Match Report summarizes a city's location advantages for a specific retailer}. m.:. coma) nityllY fie Match Report r tctpiny: ietnirh° i» '. lil Jle `Eral Fkpur C�a xt nr I_tehr�nic.,'sl'9, e Seg a,.e r:iti•r•. Pra . I 1 hie t rr I r ^.;y-y'^^--yam P, legem-ff.-::: ::,.'„;::::,.', , ,:.,':',:.,;,,:''.::',.::. .!-:.-i-.:.i.-H ...-:! . •:.: • : t . ::..-,.- .: i.E. ::: ,..:,, , � � I ft i 1I. I .; Ekii . sn. ., � :s1 in ure ar.,. ,Yi t exra r-.2e2r:.pr3:;ras Ezzr.,?arsy Pr R�: Ji Mier C ner:5;E '� �fl,�x� 1 tr.ite!r- ( np:risnr1 iuleDveIn f 3tur Cuinnunti3•,iti r f : 6t 77 krt3 1,,2ra c ara. 2:krta= L rr r 3a�'i*C d. Total Population 5,03i� l 134' 135;133 Tot at Haxr€ ha rfs 3di, D 45,799 • 49,573 Company Dominant Se er s Bolts olil5 3 .122 3; I 3E 66 �:�aai�r��eTa- a.•�s. .�'n E:en�xi:t+ ��-��ears=a-,€ er_rt�ratsr. y.�i-axsacr«rvetts, cft 6rh:r^3na "77r_;@ne.is ussd tr tlK ihca u�.� 'par"'Tr.'-ft ta'F"'1! #,46:''':'-4K 7aI:msAg's rP ffi'i'-a''::: .an1'A?:sta:s�EL�i--di m c F,'F:R,^a,.^.'i, *Zftle Prefix ThYse-s+�s-EaEx'xhrtht sits trine a-nc-.n sz3?.6LUE'r.INEI. Avaraus T �a'At./ rtta�W s� nr�wstii� of .o env runs ai et C,v=t,:7ras:�a,..Frs�u t. 15 • • 1Dentifying Customers^ Anacortes,WA: CommunityID Proposal DELIVERABLES CommunitylD deliverables will be presented to Anacortes via SCOUT, an electronic format(described below). Hard copies of all CommunitylD deliverables including marketing packages are available upon request. SCOUT is an online marketing system that will allow you to effectively use CommunityID 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 Anacortes 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 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 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 second year, a complete refresh to the Retail Site Assessment, Retail Match List and Pursuit Packages for retail recruitment 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 16 iDentifytng Customers, Anacortes,WA: CommunitylD Proposal • Retail Match List • Marketing(Pursuit)Packages • City Staff Training on the use of SCOUT-single session An electronic presentation highlighting the CommunitylD 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 Anacortes. INSIGHTS for INDUSTRIAL EXPANSION, RECRUITMENT & IMPACT Economic Impact-Buxton, through a partnership with.EMSI, offers Economic Impact modeling to as an addition to its web-based SCOUT platform. Access to this Input-Output Economic Impact tool will enable simple, straightforward "what-if" scenarios to be performed for any industry to get a sense of how that industry will impact the community Input-output models are constructed on a platform of data indicating interconnectedness of the industries,households and government entities that occupy a given geographic space. Its name stems from the fact that a portion of the output (i.e., sales) of one industry will appear as the input(i.e., purchases) of other industries. The input-output model is used to simulate in turn each of the alternative uses and among its many indicators;the impact of each use on the target occupations is examined. Alternative uses of existing resources, the impact of departing industries, the impacts of new industries, these are but a few of the policy issues addressed by a regional input-output model. Application: 1. The ability to effectively understand which new industries to bring into the region and which existing industries to expand to best meet the needs of a particular cluster_ 2. The impact of new businesses moving to the area or to justify,promote and market proposed developments through a solid estimation of the impacts of proposed activities. 3. Gap Analysis - Displays in dollars how much a cluster purchases from other industries, and the percent of those purchases that are satisfied from inside and outside of the region. 4. Shows the impact of an industry in a cluster and how it affects the cluster as a whole, as well as the rest of the economy. 17 JOentifying customers. Anacortes, WA: CommunitylD Proposal Data Sources and Calculations Input-Output Data The input-output model is created using the national Input-Output matrix provided by the federal Bureau of Economic Analysis.This is combined with the national Total Gross Output, the regional Total Gross Output, the land area of the subject region, regional DIRT data and regional in/out commuter patterns in order to calculate regional requirements,imports and exports. After using matrix algebra to calculate the regional multiplier, the resulting matrix is multiplied by the sales vector and converted back to jobs or earnings. Specifically, this data comes from the U.S. Department of Commerce Bureau of Economic Analysis. Industry Economic Accounts: Benchmark&Annual Input-Output(I-O) Accounts. Industry Data In order to capture a complete picture of industry employment,EMSI combines covered employment data from Quarterly Census of Employment and Wages (QCEW)produced by the Department of Labor with total employment data in Regional Economic Information System(REIS) published by the Bureau of Economic Analysis (BEA), augmented with County Business Patterns (CBP) and Nonemployer Statistics(NES)published by the U.S. Census Bureau. Projections are based on the latest available EMSI industry data, 15 year past local trends in each industry,growth rates in statewide and (where available) sub-state area industry projections published by individual state agencies, and (in part) growth rates in national projections from the Bureau of Labor Statistics. Shift Share Shift share is a standard regional analysis method that attempts to determine how much of regional job growth can be attributed to national trends and how much is due to unique regional factors 18 /DentifyingCustomers, Anacortes,WA: CommunitylD Proposal Examples: Best Industries To MeetRegional Requirements fdAICS Description $Required(K) .$5ahefied in Regien(i'K) Differenee(K} in • Code ' Reg ........... 324110 Pef e�m Refineries 31t 162,260 $7 898451 I $.3,263809 yes 551114 Corporate Ss iciary,and Re„im.ai v¢ n is g Offices $7.641.126 $4133,510 33,457615 615 yes 5?2110 Corn-metal Pa k $9. 2,692 58826,1665 $1366,52t yes •11 A033 Crop an s anifnai production .S34,72 $765,597 $2 7d915s6 yes • 541333 Enyl terirrg 5ervi..es $3 236,735 $515 336 i 32,421349.yes 622113 Genera. atedical tInO.SL ara.H©spiIa n $9, 3,850 • 36,944,281 • $2.149 569 yes 611310 Colleges Unto 3l1 na an i Professional Schools $2 4331362 $63 5'01 S1,791861 yea......._. ,332 75 597,648 31,795100 yes, n �; 4 524�1�, Insurance;`toenorea a�L R ee.- 33612 f-hi Trecka U°IN,/Ve e ,an,afnchrrng $1,610,3e5 $71,566', $1539799 yes '.. 541611 AdMMistrs3,iye V'.' grn i ancGeneral k`ar q merl1 1 1 1 6 4733833,. $137526d:yes Cc itfo rt a v re F ,Sf Complete Employment 4th aarter 2010 19 o. ,.5.-A:l. fDentifyingCustomers= Anacortes, WA: COmrrtunit ID Proposal Fastest Growing industries :a 2002 Jobs r:20i Jobs 300000 2500001 4 L,W 100000 50000' ' • 4 0,1 0 * / 0 � N41CS tlescsiption 2D09John 2010Jobs Growth Growth Code 551329 TereporoTyHeip Senfie-pa 51.8,co 77o 7 9 1231.: 211111 Dude P,et€APre del Nd1ura€Gzi Cxtiaei n 3 s"bar 40.808 2,75 7% 521510 .Hcred Itealto Cale SEr.C€s 37874 40 3c9 2 515 921,900 Fie€ gOVer�am 1,c.1 :except podia!s_[da 32,21 a 34,271 2,055 e`,5 5n1-to ;3eneral ge(AP- dee:-:r ival Hoppe-die 59a4.5_ 61762 1.317 31, 321111 -ff:ces of ahHsi: rr€ xcept el 1 Ht5--,1n Sped sts) 49,66d 51.792 1,904. 4% 993339 1 oval^ ,eras r^fi 248.5E5 1„3' 1,552 1'.. 722110 FLI;Seed.e Re tati e t 90,53E 9'2.V94',. 1,495 217. 551723 .0 e-.'d.Set4Pee 35 i3.8r 36.942', 959 31; 2.21122 Cectec Po ve DiEl rs,.1 a. 1:14 _ 7 g73 ;5-9 -95 a ................. SOVE- F -S Com;1,.t,:_mpny1r.,..1 4tn .,ante221:1 20 !.. .:•::.. .H .:: :.' :i.. :::. AT 41,.. •-•. .-.' E: :::. 1Dentifying Customers, Anacortes, WA: Con-ErnunityID Proposal Industries With Top Regional Competitiveness 2 Job Change '.r7pected Pale. ..'2 Corroyetitive Effect . . . . . . . . ...• • . 2500- . .. .. . .:.-::..1 . .: .:.: :. • :. •.:. .. . . . . . . . 1500- 1000 .:11.---0 ..f.-: ',":" 7..,,,..-*.qi-;-.• .• .•.:,,,, • •;:,z7 . _ •. : . • • •:- • • — • !.,-,-_,A -.,--A iii-F':r:f''V.:':•if, • . • ',•:•1"1 : •q'...i . F7,:,..4 - . . ,74 „''n'j''':-i,,'!,-.-:-..:,1.'.:0:--S:,,:4'7,'-''''.'..,'.,.-4Pl,';i;..'r...,-A:1'!:---t!=-j{.Fj',.;5,`., ,.... iN'rEi''....J.:...:....i'4:.,:.1,,i,-;-' ',.,..::-.,.:.:i1-;:i--.:,:'....'.;";..A'04.7'-i.,4.;':,,.:,.4L.4:1if..f4..- .:...:..E:',.:2::..ril.4.::.,._.:_..:,....,:.:.ii.1:..'.iiE:-4'-.2'2'A.lT.114,-"',4,-:.:.',pV..;..•-•'-.'....11-17rA:71 A r ° 1 7 .• 'f,,l •.,'0i,,E.,....-.,.,.-.-..f:-R,.,,,:„,.,P.i.,A.e.ig. ... -1500- " 1 1 4. 1 ,Y, '444 .d6" ,zi' ,40. I.,,`-:' el i, it',1,-' ic, A.N, "...) 4 ,,,,A.. 6'.14- .1 :,t,kfr 4, ,1.-- R4 -'.."' 0. ,..„iil-'4. .tr,a: vd. ." 4 ,e fc.$ 1.,N4'.- .1. ,,.,,5 4`.'\ ,.... -'.P' 44;Oe'..,-- --QS f...,, 0,- .4.,..e (!'-'(',ft N7 --...q 4..a ..tr v s.. „ . NAjcs " Deacripti en : : . i Job . Ind Mix Nat Growth :Expected i Competitive Change Effect Effect Change Efract 130702 1.ocal government , 1,552 -7.;•,''.:-.)) 3.117 11 e,! 1434 :91100D .'Fe,cer:-..d grovefrime,ni,c ,.except PD$tal service i 2075, . 537 • 4P4 94:1: . : 111:3 3361 ,Airgaft vanct.;fing i ,.;62 -5.73 .2..t.:3 -510, : . . . i . ' • : • 221122• :Eletric,Power DistWel . . :. ! 95.. 105_ . la .. 118 241 !454390 C.',t.'he't Direct'SellIng Esttlishm .113 : .392 -502: 227 -S.,55: 747 152111. :DcpartmeN$!Viv,5-'exv,pt 1.),.:wuni.D6partircnt Stores) ' ..;2.: -319; 142 •':-0. 522792 Rea E.7tate C .4 : Mn i -4,,3;`-{: 2'24 -,',-;•.;'S. .648. Sots T.7WSE Compiete Empbyment•41t1 az Fief 2010 21 JDentifyingCustomers° Anacortes,WA: CommunitylD Proposal Top Multiplier Effects NAILS Dencriptien Sales In Region Code Multiplier 327329 Pc,a21 xC crrI 2 23 yas 5111 Per o,calPu0hahes 221 yes 511140 fir ,ory,no 4 :mg P,Diisiers 215 yes 53241: rs0uit ^ Mi ny;affil F4 estry afly Fc.vpmel4 R.,NV ano igasmg 21 1 yes : S1,3;11 i u:tmagnu Fa -cat-7,s 2 10 taus 532490 (Mar Comm 3�anc fi atel=ach ner .,t pm t Re"tal i;Leasmg 2:10 yes 313219 01h&r Soa a ,scvo 1-V^r afeaScr 213 yes 813311 Na man Rpts Or Iz*aqs 7.09 y,„. 813310 P . ess4.saci ,Dns 2:09 ye,5 So ca:3003I G7mp=ete Wrr:P7yre'3t.4,00r.:1er2991E3 HOSPITALITY POTENTIAL AND DETERMINATION The purpose of this analysis is to provide an understanding of the ability to support and attract certain regional/national hoteliers. The following scope outlines the process by which this will be done: 1. Definition of the market area 2. Analysis of the suitability of the site and its position within the market. Factors considered include but are not limited to: a. Existing hoteliers (both local and regional/national) in the market b. Site setting, situation and configuration c. Growth plans and relevant development 3. Evaluation of existing markets and hotel locations to identify those comparable to the potential location. This is a critical step in the process of communicating to potential hoteliers that your opportunity can be compared to their existing experience. Some of the parameters analyzed to create the list of comparable markets and locations can include,but not limited to, the following: 22 ioer tIF(ing C stomer5° Anacortes, WA: CommunitylD Proposal a. Population b. Population growth c. Industries and Employment(by SIC) d. Transportation(airports, interstates, transit) Identification of Matches for Selected Site 1. Comparison of site trade area with existing hospitality locations 2. Identification of preliminary target list of matching hoteliers 3. Additional analysis of preliminary targets CONSUMER PROPENSITY REPORT Marketing and Merchandising Intelligence for Unique Business- The Consumer Propensity Report (CPR), updated every 8 weeks, 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 underlying 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 which the consumers would participate in or purchase that item if it were relevant and 23 -5- t )Aentifyfng Customers° Anacortes,WA: CommunitylD Proposal available. Often this is taken as an opportunity for expansion of a similar brand or concept within the category. The CPR is designed to assist the City to develop business retention and expansion strategies. The City will be armed with fact-based data to assist independent retailers to make merchandising and marketing decisions. CPR Categories Apparel Food:Baking Home Improvement Automotive Food:Condiments Household Products Beverages:Alcoholic Food:Dairy Lawn and Garden Beverages:Non-alcoholic Food:Frozen Lifestyle Statements Cable/TV/Radio Food:General Medicines/Drugs/Ailments Cleaning Products Food:Meat Pets and Pet Food Computer/Internet Food:Snack/Dessert Print Media Dining Health and Beauty Shopping Electronics Hispanic:Spanish Media Telecom Entertainment/Leisure Hispanic:Demographic Tobacco Financial Services Home Furnishings/Appliances Consumer Propensity Reports will be provided as part of the agreement and for the benefit of business owners in Anacortes. The City of Anacortes has the option to make this information available to the general public/business community on its website. In addition Buxton representative, Lisa Hill will give a complementary training session and presentation during a business forum, hosted by the City to showcase the methodology. The tutorial to attendees will be focused on smart growth among businesses utilizing intelligence to improve sales and marketing strategy. The format of the CPR will be in excel. 24 rD �t yt�g customers= Anacortes, WA: CommunityID Proposal Additional SCOUT functionality Increased access to market intelligence SCOUT's base functionality will allow Anacortes to generate on that supports efforts for business retention the fly reports at any geography on: and recruitment within Anacortes. • Demographics, • Psychographic profiles, • Retail supply and demand estimates, • Consumer propensities-a merchandising report which reveals your consumers affinity for nearly 5,000 product and service types • Custom variable reporting—most comprehensive set of geographic market variables commercially available, allowing Anacortes to access and manipulate: o Additional demographic indicators including five year projections and historical census tabulations for 1980, 1990,and 2000) o Business data (employees,land use, industrial divisions, occupation,establishments) o Current year and five year estimates on consumer expenditure, details and summarization,for average consumer expenditures and total expenditures by product. o Retail potential and consumer expenditure estimates by store type, calculated overall and per household o Current year estimates on crime by ten categories o Demographic Dimensions summarizing populations by sixteen socio-economic and ethnic clusters o Environmental Risk Index summarizing frequency and severity across five categories of natural disasters o Financial estimates on assets, debt,debt type, and net worth o Geographic identifiers such as calculation of area in square miles for each geography selected for analysis o Current year and five year estimates for healthcare 25 fDentifyingCustomers° Anacortes,WA: CommunitylD Proposal demand across Diagnostic Related Group cases/charges,Major Diagnostic Codes,and physician office visits by type o Foreclosure estimates o Mosaic segmentation distributions by households and population across adult population, workforce,households,Mosaic Groups,by population, dominant cluster analysis o Current year and five year estimates on occupation/employment estimates 26 110 • t I iDentifying Customers. Anacortes,WA: CominunityID Proposal VII. PROJECT TEAM Team members for your project will include Buxton personnel with strong retail and economic development backgrounds as well those from operations:the Vice President, Senior Vice President, Operations representative and Client Services representative. Po Lisa Hill Vice President CommunitylD Division As vice president of the CommunityID division,Lisa works with proactive cities in California with their retail economic development efforts. She 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. She is focused on communities in California, Nevada, and Utah. Lisa received her B.A. degree from Texas Wesleyan University and is a member of the International Council of Shopping Centers (ICSC).Buxton has worked with more than 500 communities nationwide,helping to recruit over 35 million square feet of retail. • Chip Rodgers Senior Vice President, CommunitylD Division 27 • 7%:10 ID IDentifying Customers^ Anacortes,WA: 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. Buxton has worked with more than 500 communities nationwide,helping to recruit over 35 million square feet of retail. p='3 Janet 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 28 lDentifyingCustomers, Anacortes,WA: CommunitylD Proposal As senior analyst for the CommunitylD division,Philip oversees every aspect of CommunitylD 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 CommunitylD 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. ry nr Chris Briggs VP Professional Services CommunitylD Division As Vice President of Professional Services 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 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. 29 fDentifying Customers° Anacortes,WA: CommunityID Proposal Bill R. Shelton, CEcD Partner CommunitylD Division Bill is a founding partner of CommunityID, 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 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. S� Harvey H. Yamagata Partner 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. 30 JDentiyirig Customers Anacortes, WA: CommunitylD Proposal VIII. PROJECT REQUIREMENTS To effectively initiate this project, we request that you provide the following: 1. Project Liaison • Anacortes 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) • Addresses and descriptive information for up to four sites that will be evaluated • Current traffic count data • List of planned retail, commercial or mixed 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 call with representatives of Anacortes 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 received 31 • 71-1-'s d= . iDentifying Customers° Anacortes,WA: Corn nunitylD Proposal IX. 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. CPR delivered Day 18 Retail Site Assessment post to SCOUT. Approve Retail Site Assessment Day 25 and submit selection of site for retail matching. Retail Match List post to Day 40 SCOUT. Submit selections of all retail Day 50 matches to be included in the Retail Marketing Packages. Retail Marketing Packages Day 60 Hospitality Report delivered post to SCOUT. Final Report to council and CPR tutorial for boutique businesses due following delivery of retail marketing packages and to be scheduled by City of Anacortes, WA. By adhering to this timeline, the CommunitylD 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. 32 1DentifyingCustomers^ Anacortes,WA: CommunitylD Proposal 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. 33 • • Denting Customers• Anacortes,WA: CommunityID Proposal X. FEE FOR SERVICES 1. $30,000 invoiced upon execution of this agreement with expiration date set to timely collection of separate entities defined by the City. 2. $10,000 invoiced upon delivery of retail site assessment&industrial insights 3. $10,000 for Scout access (one year) Total Cost of the partnership is $50,000 Consumer Propensity Report cost of$5,000 is waved if executed by Nov 30, 2011 and 8 week updates will be included for agreement period. Hospitality Analysis cost of$5,000 is waved if executed by Nov 30, 2011 and annual updates included for agreement period. SCOUT will be delivered for one year with this agreement. Optional Services (months 12+) • SCOUT only$1,250 per month • Fees cover annual access for 1 SCOUT user. Each additional SCOUT user incurs an annual fee of$3,000 + After month 12 Anacortes can cancel SCOUT at any time with 30 days notice. After the first year there will be a$1,250 per month SCOUT maintenance fee. The second year begins upon completion of the project. Anacortes may cancel SCOUT at any time with thirty (30) days written notice. 34 4utiri IDentiiymg Customers, Anacortes,WA: ComxnunityID Proposal XI. SIGNATURE PAGE This agreement is between Anacortes 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 Anacortes for any purpose. This agreement may be terminated by Anacortes 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, Anacortes may be required to provide Buxton with a certificate indicating it is a non-profit corporation and not subject to Texas Sales and Use Tax. • f� Agreed and accepted this q _ day of Pive x-, 2011. Ryan C. Larsen David Glover Director Planning, Comm. &Econ.Dev. Chief Financial Officer City of Anacortes Buxton 904 6th Street 2651 S. Polaris Drive Anacortes,WA 98221 Fort Worth, TX 76137 40:,..4.44art.„ 46,„„ c (Signature) (Signature) 35 • iDentif,ng Customers. Anacortes,WA: CommunitylD Proposal XII. ENDORSEMENTS/REFERENCES Buxton prides itself on exceptional client service that results in ongoing client satisfaction. Following are just a few of many endorsements from Commu.nitylD 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 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 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 attributed to Buxton, it was certainly an integral part of the success. So,yes it was worth the money. We have landed Target, KohI's, Old Navy, Dress Barn, Lifeway, Shoe Carnival, Maurices, Michaels, Books-A-Million, ULTA, Dick's Sporting Goods, Best Buy, Tomy 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 36 lnentify€ng cust mew= Anacortes,WA: CommunityID 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 with the identified retailers/restaurateurs? I have found that it's never easy to set up appointments with retailerslrestaurateurs. 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 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 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? Absolutely. I have been very pleased. 37 IDentrfrngCustomers° Anacortes,WA: 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 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 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??" 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 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 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 38 7-a IDenti£ying customers^ Anacortes,WA: 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, 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 person 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 Iist 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 timeline 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 and 39 fDerrtifyingCustomers• Anacortes,WA: 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. 40 • iDentifying Customers. Anacortes,WA: CommuriitylD Proposal Rochelle, IL - Peggy Friday, Commercial/Retail Development Coordinator The value of the CommunitylD Study is being 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 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 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. 41 • IDentifying Customers• Anacortes,WA: CommunityID 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 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 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 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 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 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, do 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 certain 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, entails. 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. 42 1Dentifying Customers° Anacortes,WA: CorninunityID 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 and they increased my operating budget 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. 43 110 «er 3fyingCustomers. Anacortes,WA: Co111munityID 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 almost 38,000 residents and are small, 11.2 square miles, contiguous to and surrounded 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 Iighting. 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 moneys worth? Yes. In addition to the CommunitylD 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 Iearned a lot about retail recruitment. The information was helpful in putting together our marketing pieces to distribute at ICSC (International Conference of Shopping Centers). We also learned the types of retail Denton could expect to recruit. 44 Buxt.n 1Dentifying customers, Anacortes, WA: CornrnunitylD 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. 45 `iDeniifyingCustomers° Anacortes,WA: CommunitylD Proposal 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 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 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 efforts 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 extended conversations with retailers who had previously been "Iukewarm", 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, 46 s "7.(t /Dentifying customers° Anacortes,WA: CommunityID Proposal and that they are serious about their recruitment efforts. A relationship with Buxton sends a very strong message to the retail community. • 47