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11 - RETAIL COACH CONTRACT EXTENSIONItem No. 11 memorandum TO: Mayor & City Council FROM: John Godwin, City Manager SUBJECT: RETAIL COACH CONTRACT EXTENSION DATE: May 29, 2015 BACKGROUND: In May 2014 the council approved a contract agreement with The Retail Coach to provide certain retail research and recruitment duties for the city. The initial agreement was for one year, effective beginning June 1, 2014, at a contract price of $29,995. All required deliverables were provided in a timely manner. STATUS OF ISSUE: The company has worked well with the Chamber of Commerce's retail committee and myself over the last year, and all parties wish to extend the agreement for another year in order to continue working on several likely development prospects. Renewal for one year will cost $15,000, payable in two parts. This remains a significantly lower cost than what was paid to a previous vendor for similar type services. BUDGET: Funds are included in the General Fund. RECOMMENDATION: Approve contract extension. � ®\ \� \ +77< RETAIL ECONOMIC D EVE LO PM E NT PLAN 12 -MONTH EXTENSION City of Paris., >:« May 7, 2015 THIS AGREEMENT is made and entered into as of the day of _, 2015 by and between a limited liability entity, The Retail Coach, L.L.C. (hereinafter "TRC") and the City of Paris (hereinafter "Cop"). WHEREAS, COP is seeking to attract retail and retail development to Paris; WHEREAS, TRC desires to provide assistance to COP with market research services, development and execution of a targeted retail recruitment and development strategy for Paris; and WHEREAS, the parties hereto desire to set forth their mutual understandings and agreements regarding the services to be performed by TRC. NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows: DEMAND ����l�������l����� ����8������Q����������"��������8�� Extensive research will be performed um provide a clear picture nf the factors shaping the retail environment in Paris including demographic, socioeconomic and psymhugmphic profiles; the workplace population; and consumer spending patterns. An assessment of Paris' primary retail corridors will reveal new development and redevelopment opportunities. The findings of this research combined with a Retail Gap/Opportunity Analysis calculating estimated potential sales (demand) will support the development mf specific recommendations for positioning Paris to achieve its retail expansion and development goals. ° We produce comprehensive summary demographic profile and trend reports encompassing the Retail Trade Areas (primary and secondary) and the Paris community. The profiles include the following characteristics: • Population and Population Growth • Population Trends ° Average Annual Population Growth � Ethnicity � Age • Households and Househn|dGrowth • Educational Attainment Retail Gap/Opportunity Anahsis Update) VVe calculate estimated potential retail sales (demvnd) for the Retail Tradexreoundcnmpa/ethese figures/oesdmatedactua|sa|esfigoes(suppl0toestimateretai|do|lao^comiogin°or"flow|ngom"uf Paris, vVe identify retail sales surpluses and/or leakages for 75+ different retail sectors.Thisdi,hoguishesthe retail categories that have the highest propensity for Success in Paris and quantifies their retail potential. We develop and provide summary tables and graphs of each retail sector illustrating potential sales versus estimated actual sales. RETAIL STRATEGIES RETAII.,ER MATCHING I R.ETAII., EXPANSION POSITIONING [ COMMUNITY MARKETING With unparalleled access to national and regional retailers, we cross - reference preferred customer and site selection criteria with the findings from Paris' area market analysis and Retail Gap /Opportunity Analysis. Customized community marketing tools and site profiles are developed to position for targeted recruitment of the retailers who are most likely to be successful in Paris. METHODOLOGY Retailer Matching (2015/2016 Update) We will identify regional and national retailers whose essential location factors snatch the sites identified in Paris. • We provide a preliminary list of targeted retailers based on the matching of their site selection criteria to our findings from the area market analysis, competition assessment, Retail Trade Area determination, demographic and psychographic profiles, and Retail Gap /Opportunity Analysis. Retail Expansion Positioning We use the market insight gathered through our research in Paris to establish the strongest position for successful retail recruitment. The first and most critical step in reaching out to targeted retailers is providing the information corporate real estate directors and site selectors need to make initial decisions about locating in Paris. We produce a comprehensive Retail Feasibility Package that includes: • Community Overview • Location Map • Retail Trade Area Map • Retail Trade Area Demographic Profile Summary • Existing Community Retailers • Retail Gap /Opportunity Analysis Summary Table • Retail Trade Area Psychographic Profile • Retail Trade Area Demographic Profile • Community Demographic Profile • The content of the Paris Retail Feasibility Package will be used to develop an engaging email campaign. The customized email will include a link to the community portal at www.theretailcoach.net. The link may also be placed on Paris' City and economic development websites. • We provide a Retailer Recruitment Status Report that includes each retailer's complete contact information and any comments resulting from our outreach activities. The Retail Coach, L.L.C. 2 DEVELOPER �������� N��� �������N� ���� �� �����m8����� �� � ���� � ��������� DEVELOPER IDENTIFICATION & MARKETING Using our access to national and regional developers, wedetermine the development opportunities based mn Paris' area market analysis. Customized developer marketing materials are created to position Paris for success in a targeted recruitment of the developers. This is a key strategy due to the lack of existing "ready-to-lease" developments in Paris. Once we identify retailers who are interested in locating in Paris (Phase 3 — Retailer Recruitment), you must have retail space inventory available ora timeline for its availability. METHODOLOGY Developer Identification (2015/2016 Update) ^ The Retail Coach will identify 40 retail developers active in the region in order to present Paris' development opportunities to them for consideration. " The Retail Coach will create a Developer's Marketing Package that Will focvS an developer site selection criterion including, but not limited to, the following: 0 Community Dynamics in the Area Surrounding the Properties � Retail Trade Area ° Demographic Trends � Aerial Photographs " Pre/uusSiteSpecific Studies, ifAny " Traffic Counts ° Site-Line Visibility From Major and Secondary Traffic Arteries = Ingress/Egress for Primary and Secondary Traffic Arteries � Median Cuts • Traffic Signal Existence n,Possibilities • Site Characteristics and Topography • Appropriate Zoning • Area Retail • Residential Clustering and Support Developer Recruitment Positioning • The content of the Developer's Marketing Package will be used to create an engaging email campaign, The customized email will include a link to Paris' landing page on the community portal at www.theregmi|coachoet, • We will send the Developer's Marketing Package eblast to 40 targeted developers and follow-up with personal telephone calls during the recruitment phase, • vve provide a Developer Recruitment Status Report that includes each developer's complete contact information and any comments resulting from our outreach activities. The Retail Coach, L.L.C. Web Presence Interactive Mapping and Retail 360 Dashboard The Retail Coach will update, maintain, and continue to host the Paris Interactive Mapping Application and Retail 360 Dashboard for the entire 12 months. These tools are currently set to go inactive in April 30t h , 2015. Trade Show Representation The Retail Coach will represent Paris at upcoming industry trade shows, including the ICSC Texas Deal Making Conference — November 2015 and the ICSC Recon Conference — May 2016. The Retail Coach, L.L.C. 4 PROJECT TIMELINE �]�"�N��� ����������� ���������v� The length of this project is from June 1, 2015 — June 1, 2016, Project Fees: The total fee for completion of this work is $1s,00V payable in two installments: 1. $7\5UU upon execution of the agreement 2. $7'500 upon completion of 2016 data reports, and updated Match Lists. Project fees are payable within 15 days after receipt of the invoice. Should Paris request a special assignment or additional work not specifically referenced iothevnotract, we will prepare a written authorization to be signed by Paris in advance of commencing any additional work. Reimbursable Project Expenses: It is estimated that reirnbursable expenses will be approximately $1,000. Reimbursable expenses include: " All travel costs; • Cost of special renderings and maps, if any; • Cost cf copies for reports and maps*kawings;and • Cost of shipping expenses, ifany. COP COP will designate a project liaison who will serve as The Retail Coach'sphmarycomactduhngthepxVect. COP will provide information relevant to the project such as prior retail studies, current traffic count data, surveys, maps, aerials, infrastructure plans and any other plans that may influence the development pf the retail strategy, Paris will provide City or, organization logo and contact information as it should appear on all produced reports arid materials to The Retail Coach upon execution of the agreement. |w WITNESS WHEREOF, the parties have executed this agreement asnf the ______dayof____ 2015. The Retail Coach, L.L.C. L Kelly Cofer, Pnoident/CEV City of Paris, Texas The Retail Coach, L.L.C.