KEARNEY STREET CORRIDOR SITE PRIORITIZATION AND RECOMMENDATIONS PRESENTATION TO CITY COUNCIL | APRIL 25, 2017
KEARNEY STREET CORRIDOR I. OVERVIEW OF STUDY II. RETAIL TRENDS & RECOMMENDATIONS III. PLACEMAKINg STRATEgIES IV. SITE SELECTION V. DEVELOPMENT FACILITATION STRATEgY
PROjECT SChEDULE NOV DEC jAN FEB MAR APRIL MAY PhASE 1: MARKET RESEARCh AND ANALYSIS • Kick-Ofg Meeting with Stafg • Physical conditions inventory COMPLETE and assessment • Market Analysis: Trade Area, consumer surveys, retail sector identifjcation, residential opportunity • First Public Workshop • First Presentation to City Council PhASE 2: SITE PRIORITIZATION PLAN COMPLETE • Defjne sites to target for development • Presentation to City Stafg PhASE 3: STRATEgIES & INCENTIVES PLAN • Review of City Economic Development Inititatives and Incentives COMPLETE BY • Final Presentation to City Council MAY 2017 • Final Report: inventory, market analysis, and implementation steps for redevelopment
ThE bACKSTORy - gEnERAl RETAIl ONLINE RETAILINg hAS DRAMATICALLY ChANgED ThE RETAIL ENVIRONMENT (AMAZON IS ChANgINg ThE WORLD OF US RETAILINg) 90% OF RETAIL SALES STILL TRANSACTED IN BRICK AND MORTAR STORES NOW NIChE BUSINESSES ARE COPYINg AMAZON’S MODEL OThER SAVVY RETAILERS WATChED AMAZON AND CREATED gOOD WEBSITES AND UPPED ThEIR ONLINE gAME qUICKLY
RETAILER hEALTh 2016: 9 RETAILER BANKRUPTCIES 1,400 STORE CLOSURES SO FAR IN 2017: 10 RETAILER BANKRUPTCIES 2,880 STORE CLOSURES ESTIMATED 8,600 CLOSURES BY END OF ThE YEAR.
RETAILER hEALTh
SPRINgFIELD RETAIL BUSINESS TRENDS SOURCE: REFERENCE USA
SPRINgFIELD RETAIL BUSINESS TRENDS FROM 2011 – 2016, 4.2% AVg. ANNUAL TAxABLE SALES gROWTh LAST 12 MONThS, IN ThE SPRINgFIELD AREA, 29% OF ThE POPULATION BOUghT SOMEThINg ONLINE IN KANSAS CITY AREA: 30% IN ST. LOUIS AREA: 30% IN ThE COLUMBIA AREA: 32% EVEN IN ThE BENTONVILLE, ARK. AREA: 29% SOURCE: MODOR, ESRI AND gFK MRI
CLOThINg & ACCESSORIES DEEP VALUE RETAILERS ALThOUgh ThE NATIONAL RETAIL MARKET IS FACINg ChALLENgES, ThE DEEP VALUE RETAILERS ARE gROWINg FITS WITh DEMAND OF BUDgET CONSCIOUS hOUSEhOLD PROFILE IN TRADE AREA
RETAIL ChURNINg • ChAngIng DEMOgRAPhICS AnD ShOPPER TREnDS hAvE RENDERED SOME TYPES OF DEVELOPMENT AND SOME TYPES OF STORES NO LONgER RELEVANT; I.E.: • ThE EnClOSED MAll • STRIP CEnTERS AnChORED by bIg bOxES & jUNIOR ANChORS • gORDMAn’S, bIg lOTS & OThERS SEllIng ClOSE OUT OR MANUFACTURER ExCESS INVENTORY ThANKS TO OVERSTOCK.COM • FuRnITuRE STORES MAy bE IMPACTED by ONLINE RETAILERS SUCh AS WAYFAIR • REgIOnAl MAllS AnD STRIP CEnTERS OFTEn FuEl RETAIl DEVELOPMENT A MILE IN EIThER DIRECTION • ThE lOSS OF ThESE bIg STORES WhICh DRIvE TRAFFIC CAn hAVE A MAjOR RIPPLE EFFECT WIThIN A RETAIL CORRIDOR
WhAT ShOULD LOCAL gOVERNMENTS DO? • CAll, EMAIl, SnAIl MAIl EvERy STATE AnD FEDERAl REPRESENTATIVE TO LOBBY FOR A REqUIREMENT ThAT TAxES INTERNET SALES AND ThAT RECOgNIZES ThE specific LOCATION OF ThE BUYER • CAll yOuR STATE REPRESEnTATIvES AnD bE SURE YOU UNDERSTAND WhAT ThEY WILL BE DOINg WITh ThEIR nEW-FOunD AMAzOn SAlES TAx DOllARS
WhAT ShOULD LOCAL gOVERNMENTS DO? YES, AMAZON WILL BE COLLECTINg STATE SALES TAxES, BUT WhAT WILL ThE YIELD BE TO ThE CITY? WhAT ABOUT ThE OThER ONLINE RETAILERS WhO MAY NOT hAVE A PRESENCE IN YOUR CITY? SALES TAx REVENUES ARE A MAjOR SOURCE OF REVENUE FOR CITIES ThE ShIFT IN ShOPPINg SOURCES hAS UPENDED ThIS REVENUE PICTURE AND NOW ThE FURThER EVOLUTION OF ThIS TREND IS ThE CLOSURE OF STORES
UNDERSTANDINg ThE FINANCIAL IMPACTS OF REVENUE LOSSES • AnAlyzE TAxAblE SAlES PER RETAIlER AnD COMPARE WITh PUBLIShED, NATIONAL SALES DATA • DETERMInE WhAT ShARE OF yOuR SAlES TAx REvEnuE IS FROM LOCAL RETAILERS, AND WhAT ShARE IS FROM NATIONAL RETAILERS • REvIEW nATIOnAl RETAIlERS; ARE Any In yOuR COMMunITy AT RISK? hAVE ANY ANNOUNCED CLOSURES OR BANKRUPTCY? WhAT IS YOUR COMMUNITY’S ExPOSURE? • DO yOu hAvE DEvElOPMEnT bOnDS OuTSTAnDIng bACKED BY RETAIL DEVELOPMENT REVENUES? DO ANY OF ThE BONDS CARRY A gO BACKUP? • WhAT MIghT hAPPEn IF RETAIlERS x, y, OR z ClOSED?
WhAT ShOULD LOCAL gOVERNMENTS DO? SUMMARY • unDERSTAnD yOuR RETAIl bASE, ThE ASSOCIATED PROPERTIES, AND TAx REVENUES • ThInK AbOuT DEvElOPMEnT OR REDEvElOPMEnT OPTIOnS • DOn’T bE TOO quICK TO PROvIDE FInAnCIAl InCEnTIvES WIThOUT ANALYZINg ALL OF ThE COMPONENTS OF ANY PROPERTY OWNER OR DEVELOPER PROPOSAL
RETAIL gAP ANALYSIS PTA STA FOOD & BEVERAgE $10.6 M $48 M CLOThINg $2.4 M $12.1M ELECTRONIC / APPLIANCE $8 M $14.2 M UNMET RETAIL DEMAND $95 MILLION
FOOD & BEVERAgE FOOD hALLS
FOOD hALLS REVIVAL FOOD hALL IN ChICAgO
FOOD hALLS ThE SOURCE FOOD hALL IN DENVER
FOOD TRUCK COURT REVITALIZE NEIghBORhOODS OFFERINg MORE DININg OPTIONS lOWER START-uP COSTS ThAn BRICK AND MORTAR FAMILY FRIENDLY WITh LIVE MUSIC
FOOD & BEVERAgE STORES ADAPTIVE REUSE FOR RESTAURANTS
FOOD & BEVERAgE STORES POTENTIAL ADAPTIVE REUSE
PLACEMAKINg STRATEgIES POPS 66 SODA RANCh ARCADIA, OKLAhOMA
PLACEMAKINg STRATEgIES ROUTE 66 ECONOMIC IMPACT “ThE RESTORED ROUTE 66–ThEMED MOTEL, RESTAURANT AND gIFT ShOP MAY NOT hAVE A hIgh-DOllAR buSInESS vOluME RElATIvE TO ThE MUCh LARgER REgIONAL AND STATE ECONOMIES, BUT ThEY ANChOR ThE DOWNTOWN IN MANY SMALL COMMUNITIES AND CAPITALIZE ON A ROUTE 66–LINKED PAST AND FUTURE.” -ROuTE 66 ECOnOMIC IMPACTy STuDy
PLACEMAKINg STRATEgIES CRUISINg & CUSTOM CARS POP UP CRUISINg EVENT AS A PILOT PROjECT CLASSIC CAR ShOWS AT MCDONALD’S AND CULVER’S PUBLIC INPUT FROM BABY BOOMERS WhO hAVE FOND MEMORIES OF CRUISINg ON KEARNEY ROUTE 66 MOThER ROAD FESTIVAL AND CAR FAIR IN SPRINgFIELD,IL, ATTRACTS 80,000 ATTENDEES AND gENERATES $1 MILLION INTO ThE LOCAL ECONOMY
PLACEMAKINg STRATEgIES TREE PLANTINg NEIghBORWOODS IF ENOUgh RIghT OF WAY IS CREATED AND MODOT WOULD ENTER INTO A gROWINg TOgEThER AgREEMENT, ThEY WOULD AgREE TO ESTABLISh AND MAINTAIN ThE TREES OR RESERVE FUNDINg TO PLANT AND ESTABLISh ThE TREES ThROUgh ThE 1/4 CENT CTLI FUNDS
PLACEMAKINg STRATEgIES CROSSWALKS & PEDESTRIAN SAFETY
PLACEMAKINg STRATEgIES IMPROVE VISIBILITY AND CONNECTIVITY TO DOLINg PARK CROSSWALKS AT INTERSECTIONS OF • KEARnEy & RObbERSOn • KEARnEy & bOOnvIllE WAYFINDINg SIgNAgE ON KEARNEY STREET
SITE SELECTION ELECTRONICS 30,000 FOOD & BEVERAgE 112,500 hEALTh & PERSONAL CARE 12,000 CLOThINg 40,500 TOTAL 195,000 Sq FT
SITE SELECTION: PROPOSED FOOD hALL SITE O’REILLY AUTO PARTS BOWLINg ALLEY CAR WASh jOhNSTON AVE
PROPOSED FOOD hALL & FOOD TRUCK COURT jOhNSTON AVE FOOD TRUCK COURT FOOD hALL O’REILLY AUTO PARTS Y A W D A O R B
SITE SELECTION: RETAIL ESTABLIShMENT TO DOLINg PARK R O B B E R S O N B O O N V I L L E
SITE SELECTION: RETAIL ESTABLIShMENT S U M M I T BAPTIST BIBLE COLLEgE
SITE SELECTION: MOTOR COURT D E L A W A R E WELLER AVE A V E
SITE SELECTION: MOTOR COURT MOTOR COURT ART gALLERIES, MUSIC VENUE
DEVELOPMENT FACILITATION STRATEgY IF ThE CITY DECIDES TO ExTEND INCENTIVES ALONg ThE KEARNEY STREET CORRIDOR IT ShOULD DO SO IN SUCh A WAY AS TO MAxIMIZE: FLExIBILITY – ThE ABILITY TO gROUP PROPERTIES TOgEThER FOR A lARgE PROjECT, OR ThE AbIlITy TO InCEnT SInglE-SITE PROjECTS AS APPROPRIATE: OVERSIghT – ThE ABILITY FOR ThE CITY TO EVALUATE EACh PROjECT WITh RESPECT TO ITS NEED FOR ANY INCENTIVE, ThE RETURN ON INVESTMENT TO ThE CITY, ThE ABILITY OF ThE PROjECT TO MEET ECONOMIC DEVELOPMENT gOALS, AND ThE ABILITY FOR ThE CITY TO OVERSEE ThE USE OF ANY INCENTIVE REVENUES ALONg ThE CORRIDOR
DEVELOPMENT FACILITATION STRATEgY LAND CLEARANCE FOR REDEVELOPMENT AUThORITY (LCRA) ChAPTER 99 OR ChAPTER 353 • lAnD ACquISITIOn • blIghT REMOvAl • PROPERTy TAx AbATEMEnT
DEVELOPMENT FACILITATION STRATEgY COMMUNITY IMPROVEMENT DISTRICT CID REVENUES CAN BE USED FOR: • STAFF (A DIRECTOR OR COORDInATOR FOR ThE CORRIDOR) ThIS PERSON WOULD REPORT TO A CID BOARD OF DIRECTORS, WhICh CAN BE APPOINTED BY ThE CITY. • MARKETIng • TRAInIng FOR lOCAl buSInESS OWnERS • PublIC InFRASTRuCTuRE IMPROvEMEnTS • PRIvATE IMPROvEMEnTS AnD lAnD ACqUISITION (IF IN A BLIghTED AREA)
DEVELOPMENT FACILITATION STRATEgY RECOMMENDED STRATEgY: LCRA TAx ABATEMENT + COMMUNITY IMPROVEMENT DISTRICT • ESTAblISh An lCRA REDEvElOPMEnT AREA TO gIvE ThE CITy ThE ABILITY TO ABATE TAxES FOR A DESERVINg PROjECT(S) • ESTAblISh A COMMunITy IMPROvEMEnT DISTRICT TO gENERATE REVENUE VIA: -ADDITIOnAl SAlES TAx; -PROPERTy TAx; OR -SPECIAl ASSESSMEnT • 0.5% CID SAlES TAx PRODuCES APPROx. $1MIllIOn; $600,000 WIThOUT WALMART • ThE CID COulD bE PAIRED WITh TAx AbATEMEnT TO DERIVE ThE SAME BENEFIT AS TIF
ECONOMIC INCENTIVES COMMERCIAL LOAN PROgRAMS BUSINESS DEVELOPMENT LOAN PROgRAM • uSE OF FunDS: ACquISITIOn, buIlDIng COnSTRuCTIOn OR REhAB • 2.75% FIxED InTEREST lOAn; UP TO A 20 YEAR TERM • MuST MEET AT lEAST 1 NATIONAL OBjECTIVE: - bEnEFIT lOW/MODERATE (lMI) hOUSEhOLDS - CREATE OR RETAIn lMI jObS CAFE CUSCO (1 jOB FOR EVERY $35K LOANED) - AID IN ELIMINATION OF SLUMS OR BLIghTED CONDITIONS
Recommend
More recommend
