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08/18/2008 COMMUNITY REDEVELOPMENT AGENCY AGENDA Location: Council Chambers - City Hall Date: 8/18/2008- 1 :30 PM 1. Call to Order 2. Approval of Minutes 2.1 Approve the minutes of the July 14, 2008 CRA meeting as submitted in written summation by the City Clerk. ~ Attachments 3. CRA Items 3.1 Discussion: ERA/DowntownWorks Draft Cleveland Street District Retail Strategy Report. ~ Attachments 3.2 Approve an Interlocal Agreement between the CRA and the City of Clearwater to provide CRA funding in the amount of $134,023.46 to underwrite the cost of additional Community Policing Services by the Clearwater Police Department in the East Gateway CRA District, pursuant to the recently adopted East Gateway District Five-Year Action Plan and authorize the appropriate officials to execute same. ~ Attachments 4. Other Business 5. Adjourn Meeting Date:8/18/2008 Community Redevelopment Agency Agenda Council Chambers - City Hall SUBJECT / RECOMMENDATION: Approve the minutes of the July 14,2008 CRA meeting as submitted in written summation by the City Clerk. SUMMARY: Review Approval: 1) Clerk Cover Memo Item # 1 Attachment number 1 Page 1 of 2 COMMUNITY REDEVELOPMENT AGENCY MEETING MINUTES CITY OF CLEARWATER July 14, 2008 Present: Chair/CRA Trustee CRA Trustee CRA Trustee CRA Trustee CRA Trustee City Manager Assistant City Manager Assistant City Manager/CRA Executive Director City Attorney City Clerk Board Reporter ems are in agenda order although not 2. unity Redevelopment summation by the City nimously. 3. CRA Items 3.1 A rove the Cleveland Street B In an effort to further the CRA's (Clea to develop downtown Clearwater as a vibrant desti staff proposes to display street pole banners beari of the Cleveland Street District (CSD) as an "Outdoor The program also aims to build upon and complem related efforts, such as the Cleveland Street District Rotating ptures Exhibi . Sculpture360, which was unveiled this month in the 400, 500 and 600 block Street. The City's Cultural Affairs Division, as part of the Public Art & Desi manage the program in concert with the CRA. Initially, it is proposed that up to 30 lamp poles in the 400, 500, an designated for up to 30 unique banner designs displayed based on designa emes that correlate to City-sponsored functions. The remaining lampposts, of which there are a total of 57, will continue to display the CSD logo banner as they are currently displayed. Community Redevelopment Agency 2008-07-14 1tem # 1 Attachment number 1 Page 2 of 2 There will be two themed exhibitions per year aimed for the fall and spring. "Clearwater Gets Jazzed" is the proposed theme for the first banners to be displayed from September through November of 2008. The banner artwork will relate to Clearwater's connection and celebration of jazz music. mpetition is proposed for a January through April 2009 exhibition. Artis com petiti Public the process outlined by the Public Art & Design Board through ection committee made up of members appointed by the the Public Art Fund will finance the program. CRA staff ment Board fund the first run of the banners through 7 -08 budget. The meeting adjourned at 2:41 p.m. that the current ordinance the Public Art & Design The majority of the CRA agreed to be changed to reflect that the City Cou Board prior to being displayed. Trustee Doran moved to appro guidelines. The motion was duly secon "Aye"; Trustee Cretekos and Gibson vote 4. Other Business - None. 5. Adjourn Chair Community Redevel Attest: City Clerk Community Redevelopment Agency 2008-07-14 :Item # 1 Meeting Date:8/18/2008 Community Redevelopment Agency Agenda Council Chambers - City Hall SUBJECT / RECOMMENDATION: Discussion: ERA/DowntownWorks Draft Cleveland Street District Retail Strategy Report. SUMMARY: Pursuant to CRA RFP 10-08, a contract was awarded March 17, 2008, to Economic Research Associates/Downtown Works of Washington, D.C. for Retail Recruitment and Marketing Services for the Cleveland Street District in Downtown Clearwater. The objective of the Contract was to support and enhance the existing retail base within the Cleveland Street District. The contract delineates the following services to be provided by the consultant: 1) Develop a Strategy for Retail Recruitment and Repopulation of the retail spaces in the Cleveland Street District, consistent with the "Cafe Society" vision and market characteristics. 2) Develop a marketing and leasing plan to implement the retail strategy. 3) Assist and counsel the CRA with retail contacts and negotiations with property owners/retail prospects. These services are intended to support the overall strategy for downtown revitalization, which is: 1) implement infrastructure improvements; 2) attract residential development; and 3) create a "destination". The contract marks the next step in the CRA's program for downtown revitalization, which to-date has included the Downtown Market Study; Fa<,;ade Design Analysis creating the "Cafe Society"; revised Fa<,;ade Improvement Program and Sidewalk Furniture Grant Program; and, Cleveland Street branding. ERA/Downtown Works has completed a draft report, addressing Item 1 of their engagement. Activities under items 2 and 3 are also underway, in conjunction with the CRA Downtown Manager. Staff seeks CRA Board input, advice and comment on the discussion draft to assure that the final document reflects the expectations of the Board. Staff will then incorporate the results of the discussion into a final draft for consideration/adoption at the September 15, 2008 CRA meeting. ERA/DowntownWorks representatives will be in attendance to present the discussion draft and answer any questions. Review Approval: 1) Office of Management and Budget 2) Legal 3) Clerk 4) Assistant City Manager 5) Clerk 6) City Manager 7) Clerk Cover Memo Item # 2 C1evela nd Street District Retail Strategy Draft Retail Strategy and Merchandise Mix Plan August 2008 Table of Contents I. Overview and Timeline II. Downtown Overview and Market Assessment III. Existing Conditions IV. Merchandise Mix V. Implementation Attachment number 1 paef Ae1gost 2008 Item # 2 1 Retail Strategy & Implementation Program The City of Clearwater retained ERA I DW to evaluate retail conditions in the Cleveland Street District in downtown Clearwater and create a Retail Strategy and Implementation Program The scope includes: Definition and description of important customer markets . Development of Merchandise Mix Plan, including appropriate mix of retailers and phasing . Commencement of Implementation Program Our approach is unique and addresses Cleveland Street District's needs Hands-on and strategic, beyond the numbers More emphasis on action, on-the-ground recruitment, and training rather than a long written report Tangible deliverable, Executive Summary only Timeline Months May - July: Data gathering, interviews, strategic assessment, draft Executive Summary Months Aug - Sept: Finalize Executive Summary, retail recruitment marketing material, Retail Recruiter training Months Oct - April: Implementation, grant assistance, monitor and prospect with Retail Recruiter, prospective tenant evaluation, landlord meetings Table of Contents I. Project Overview and Timeline i. Potential Customer markets Lifestyle characteristics ii. Expenditure characteristics ii. Supportable Square Feet iii. Stakeholder interviews iv. Strengths and challenges for retail III. Existing Conditions IV. Merchandise Mix Plan V. Implementation Attachment number 1 paef Ae1gost 2008 Item # 2 2 Three major elements must be in place for retail to succeed in the Cleveland Street our work addresses the element. Retail Recruitment to fulfill Merchandise Mix Plan * Without the appropriate merchandise mix, downtown will never reach its full potential * Without directed reta i I recru itment Clearwater may never create the right tenant mix Potential Customer Market Three types of people are potential downtown customers Cleveland Street District In a market Clearwater's size, retail must rely on more than one customer type Employees will not be a major contributor to retail spending, "icing on the cake." Attachment number 1 paef Ae1gost 2008 Item # 2 3 Downtown Employees and Retail Employees will not be a major source of retail spending on Cleveland Street >- City of Clearwater (geography) . Approximately 52,000 (2006 US Census) >- Pinellas County (geography) . Approximately 647,000 (Woods & Poole) >- Downtown Clearwater Approximately 6,000 (2006 Market Study) 2,800 County employees (County estimate) 1,000 City employees (City estimate) Increase - Employees stopping for after work dinnerl drinks close to office 12% in 1987 and 25% in 2003 Decrease - Office workers travel time to lunch (avg 6 min) . Less than 5 min: 25% in 1987 and 40% in 2003 Source: ICSC Spending Patterns of Office Workers; 2003. >- Cleveland Street District Class A Office Space - 3 buildings . 368,181 square feet total . 138,405 square feet available >- Space to employee ratios In Clearwater, 200 to 250 square feet per employee . 920 to 1,150, Estimated employees in Class A space City of Clearwater Employment, 2006 Category Employees Management, professional, and related occupations Service occupations Sales and office occupations Farming, fishing, and forestry occupations Construction, extraction, maintenance and repair occupations Production, transportation, and material moving occupations Total: 19,718 9,702 12,867 301 6,237 3,254 52,079 Source: US Census, American Fact Finder, June 2008 Residential Drive-Time Markets Creating a Merchandise Mix that draws customers from the surrounding drive-able markets will be very important. Attachment number 1 paef Ae1gost 2008 Item # 2 4 Residential Markets and Retail Relevant Data Downtown Core too small to, alone, support retail Approximately 1,000 units coming on-line in Cleveland Street District 10 minute drive time, however, has 75,700 households Determined residential market areas relevant to retail Utilized drive-times for markets outside of core " Takes into account real accessibility 10,20, and 30 minute drive-times Trade areas are not cumulative Secondary: Between 10 minutes and 20 minutes " Tertiary: Between 20 minutes and 30 minutes Population . 820,114 (2007) 836,3403 (2012) Average HH Income $65,233(2007) $79,056 (2012) Residential Market Income No. of Househokls by Inmme Level and Market Area, 2007 Population . 167,226(2007) . 169,790 (2012) Average HH Income . $57,654 (2007) . $68,490 (2012) Median age 46 Population 300,503 (2007) 303,337 (2012) Average HH Income $68,363 (2007) $82,179 (2012) Median age 48 Population . 352,385 (2007) 363,213 (2012) Average HH Income $66,174 (2007) $81,400 (2012) 45 Number of households tapers off as income bracket increases Significant drop in number of households at $150,000 Retirement community affects income levels (still have money to spend) Income No. of Households by Income Level and Market Area, 2012 More even distribution of households across incomes estimated in 2012 Income Attachment number 1 paef Ae1gost 2008 Item # 2 5 Residential Research Mode and Key Factors Almost all major categories enjoy dining out All trade areas have old and young populations that are potential downtown customers All trade areas have the same top three Life Mode groups: Senior Styles Traditional Living Upscale Avenues Trade Area Data >- "Senior Styles:" Largest Life Mode Group ~ Younger, more affluent members move to warmer climates ~ Very diverse Life Mode group (range of incomes, ages, preferences) ~ Politically active m Golf is favorite sport ~ Read newspapers daily Within "Senior Styles," two major segmentation categories: ~ "Retirement Communities" (9,080 HH, 12 % of whole) Educated older market (median 51.4) . Health is priority, diet and exercise . Enjoy gardening, canoeing, gambling spoiling grandchildren with toys, home remodeling . "Senior Sun Seekers" (8,039 HH, 11 % of whole area) Retired or anticipating retirement (median 51.9) High proportion of seasonal housing . Enjoy dining out, reading, fishing, games (bingo, casinos, etc.) Primary Market Household Life Mode Groups EJ High Society EJ Senior Styles II Upscale Avenues EJ MetroPJlis 0 Solo Acts o High Hopes II Gbbal Roots 0 Family Portrait . Traditional Living 0 American Quilt ;.. "Upscale Avenues, High Hopes, Solo Acts" are all great groups for urban oriented retail (24% of trade area) "Upscale Avenues" . Prosperity is major attribute (above average earnings) . Well educated, internet savvy . live suburban, but embrace urban lifestyle . Enjoy outdoor activities and sports . Spend money on dining out and home improvement "High Hopes" . Young, couples or single parents spending money on children . Enjoy dining out, dancing, fishing, exercise, gaming "Solo Acts" . Unencumbered lifestyle . Well educated, working professionals, largely single . Considerable discretionary income . Enjoy dining out, travel, urban environment Attachment number 1 paef Ae1gost 2008 Item # 2 6 Trade Area Data Similar Life Mode group distribution as the Primary Trade Area "Senior Styles" constitute over half of the market "Upscale Avenues" are major contingent with 13% >- "Traditional Living" is 3rd largest group with 11 % Midlife Junction represents 88% of this group Hardworking and settled families Spend money carefully, do not succumb to fads ~nJ~(e~id~ng out at full-service restaurants, especially on ;.. "High Society" is 4th largest group with 8% Relevant to retail, high disposable income m Contain 7 most affluent Segmentation categories, 3 represented in Clearwater ~ "Exurbanites" (9,502 HH, 6.8% oftotal area) . Empty Nesters comprise 40%, nationally . Spend on home improvement and landscaping supplies and tools . Enjoy outdoor activities "Sophisticated Squires" (1, 189 HH, 0.7% oftotal area) m "Suburban Splendor" (712 HH 0.5% of total area) Secondary Market Household Life Mode Groups I::J High Society I::J Upscale Avenues I::J Metropolis I::J Senior Styles IIIl High Hopes 11II Global Roots 11II Traditional Living 11II American Quilt I::J Solo Acts IIIl Fami~ Portrait Trade Area Data "Senior Styles" represents 41% as opposed to over half in other trade areas ;- The top three Life Mode Groups represent 73% of the tota I ma rket >- With a 30 minute drive time, the tertiary market residents are the least likely to drive to Cleveland Street District Includes St. Petersburg, where residents may travel to Cleveland Street District for II A collection of restaurants II A single destination restaurant . More likely to travel to eat than to shop Tertiary Market Household Life Mode Groups 1% 3% IIIl High Society IIIl Senior Styles 11II Traditional Living I::J Upscale Avenues IIIl Metropolis IIIl High Hopes I::J Global Roots IIIl Factories & Farms IIIl American Quilt IIIl Solo Acts IIIl Fami~ Portrait Attachment number 1 paef Ae1gost 2008 Item # 2 7 Residents are an ever-present customer market with consistent household spending ERA estimated annual household spending " ESRI Business Analyst and Bureau of Labor and Statistics spending patterns Includes several categories . Apparel and Apparel Service . Household Furnishings and Electronics . Personal Care and Services . Food and Beverage Away From Home . Includes all expenditures made by household in any location throughout the year Indicates the potentia/level of spending by households, not actual spending in downtown Clearwater Primary Trade Area $8,000 Secondary Trade Area $8,900 Tertiary Trade Area $9,200 Combined Trade Area Spending Per Household, 2007 Cleveland Street District should capitalize on significant expenditures - Need to recruit restaurants All Trade Areas have the same spending distribution across categories [] Apparel & Apparel Services 0 HH Furnishings & Electronics 121 Personal Care & Services II Food & Beverage Household Spending in Retail Categories, by Trade Area Annual Market Area Breakdown of Household spending by category for Retail Categories By Market Retail Expenditures Retail each trade a rea Expend itures Primary Farther-out spending is higher: Apparel & Apparel Services 146,921,004 24.1% Individual household spending increases HH Furnishings & Electronics 165,391,614 27.1% Number households increase Personal Care & Services 80,955,405 13.3% Food & Beverage 215,982,981 35.5% Residents within 10 minute drive time Subtotal 609,251,004 100% spend $215 million+ on food-away Secondary from home (Restaurants) Apparel & Apparel Services 304,390,794 25.2% HH Furnishings & Electronics 349,266,513 28.9% Personal Care & Services 174,050,850 14.4% Food & Beverage 379,286,433 31.4% Subtotal 1,206,994,592 100.0% Tertiary STRATEGY: Provide a unique Apparel & Apparel Services 354,910,783 24.1% HH Furnishings & Electronics 405,755,710 27.5% Merchandise Mix with one-of-a- Personal Care & Services 191,804,252 13.0% kind retailers and restaurants. Food & Beverage 520,563,114 35.3% Subtotal 1,473,033,858 100.0% Total HOW: A dedicated Retail Apparel & Apparel Services 806,222,581 24.5% HH Furnishings & Electronics 920,413,837 28.0% Rgl;fyiJgf whose primary Personal Care & Services 446,810,507 13.6% responsibility is generating retail Food & Beverage 1,115,832,528 33.9% Subtotal 3,289,279,454 100.0% ros ects $3.3 billion spent by trade area households Attachment number 1 paef Ae1gost 2008 Item # 2 8 Visitor Market: With the right retail mix, Cleveland Street District can capitalize on a strong visitor market Clearwater 792,212 overnight visitors in 2007 (Clearwater Regional Chamber of Commerce) Since 2003, the visitation has decreased, on average, 2% annually Spike in 2004 with 924,516 visitors 33% of visitation is international 792,212 visitors (2007) Winter: 32% (252,175) Summer: 42% (333,335) Fall: 26% (206,702) Visitors have disposable income (Median HH Inc.) Median HH $ % Exec./Prof Winter: $114,146 55% Summer: $112,857 62% Fall: $103,247 57% Majority of visitors are vacationing (approximately 90%) Rather than visiting friends & family m More likely to eat out 5.25 million visitors annually Top 5 US Feeder Markets Chicago 10.2% of total visitation New York 9.0% Tampa 5.5% Boston 5.1 % Philadelphia 4.4% 92% are vacationers, 13% are visiting friends and relatives 60% are families and 37% are couples (avg. party size 2.8 Length of stay in st. PetelClw Area: 6.5 days Average Length of Stay and Party Size Stay Pa rty Size Wn~~ 73 2B Summer: 5.4 3.0 Fall: 6.1 2.5 Seasonal Residents Approximately 20,000 "winter residents" each year in Clearwater (City of Clearwater) January - April 4% of St.petersburg/Clearwater total winter residents US Census tracks units utilized for seasonal, recreational, or occasional use in Clearwater 4,309 units, 7.6% of total (US Census 2000) 4,881 units estimated for seasonal use in 2006 (based on percentage of 64,226 total units in 2006) St. Petersburg/Clearwater seasonal population in 2006 (Nov - April) 1,185,000 residents 658,333 households Spending patterns will resemble resident spending more closely than visitor spending. For example, may not eat out every night as vacationers do. Attachment number 1 paef Ae1gost 2008 Item # 2 9 Clearwater/Clearwater Beaches Visitor Expenditures 2007 ClearwaterlClearwater Beaches Visitor Profile (Chamber of Com.) Winter per Person per Trip . Food/Entertainment: $767 . Retail: $264 SpringlSummer per Person per Trip . Food/Entertainment: $687 . Retail: $272 Fall per Person per Trip . Food/Entertainment: $688 . Retail: $301 Visitors tend to spend more on food and beverages than retail They are a captive audience Cleveland Street can offer something different than beach shops Clearwater Beaches underserved with "real" retail Total Retail Expenditures 2007 Clearwater/Clearwater Beaches Retail: $2.1 million Food/Entertainment: $5.7 million STRATEGY: Offer visitors a selection of restaurants they will not find at home or elsewhere in the region Market Penetration: Capturing Expenditures from Residents and Visitors In Clearwater's retail trade areas, there is money to be spent Downtown Clearwater will not "capture" all of the residential/visitor spending Market penetration rates or capture rates identify a realistic portion of expenditures that could be attracted to a given area For example, rate of 10% assumes $10 of every $100 is spent in a defined area/location. Common consumer behaviors influence the propensity to buy certain items. For example, people: Buy groceries and convenience items close to home Travel farther and more often to go to restaurants as opposed to retail Visitors always spend money on dining out );- Market Penetration Rates dependent on several inter-related factors Merchandise Mix on Cleveland Street District Competitive Context Proximity of Cleveland Street District to Trade Area - Residents in 10 minute drive time more likely to shop Hence the importance of a Retail Recruiter to prospect for tenants that fulfill the Merchandise Mix Plan Attachment number 1 paef A~ust 2008 Item # 2 10 ERA I DW estimates that the Cleveland Street District can support additional retail in existing vacant spaces In this phase of the analysis (market is defined) #1 factor is to capitalize on potential retail demand through the.... Quality of the Merchandise Mix In a city Clearwater's size, the #1 tool to improve the tenant mix is a: Retail Recruiter Other factors are important too . Increase tourism Increase downtown residents Without a retail recruiter, Clearwater can not realize its full retail potential No Merchandise Mix Plan or Implementation (focused Retail Recruitment) The potential if a Merchandise Mix Plan is adhered to by all and a dedicated Retail Recruiter is generating prospects Retail Category Low Supportable "0, Ft 18,719 34,643 53,362 Retail Food & Beverage Total Supportable Note: These figures include existing retail Multiple factors will ultimately affect the supportable square footage and success of the retail over the short-term and Factors Affecting Supportable Demand (including existing space) 53,000 SF 114,000 SF 175,000 SF III-formed Well-formed Merchandise Mix . The success and appeal of a retail cluster is directly linked to its merchandise mix and its function as a destination. Competitive Surrounding Context The nature/size of existing retail offerings, as well as new catalytic or competitive development projects in the region or in Cleveland Street District can defer/attract customer dollars . Complementa')' Factors Affecting Store Productivity low Sales / SF High Sales / SF Bad Loca"on, Design, & Configu","on .. In-S'o,e Me,chandlslng ....e A store's size, location, interior, and storefront design are part of total appeal for customers. A store will do better located in an area with a good Merchandise Mix Price points and merchandise should accurately reflect the demographics and lifestyle characteristics of the potential consumers. Inaccurate TYPio,e Merchandise quality, quantity, mark-up, as well as store size, influence retailers' Sales/ SF. Will impact Merchandise Mix. Jewelry (expensive merchandise in small space) Coffee (high profit margin in small space) Furniture (sales spread over large store) Electronic & books (low profit margins) Attachment number 1 paef A~ust 2008 Item # 2 11 Supportable square feet in relation to existing retail space estimates ERAI DW estimated existing square footage on Cleveland Street during the Qualitative Assessment Excessive vacant space that should be an Implementation priority If Merchandise Mix Plan is implemented, still room for retail to grow in the future Successful retail destination will generate more demand The market ($$) is there if you give potential customers a reason to choose Clearwater Substantial demand if work to create co-tenancy and complementary Merchandise Mix that will attract people Supportable SF and Existing SF on Cleveland Street Category Low High Supportable Square Feet 91,626 180,376 Less Existing Retail Office Space that could __ Less Existing Office be retail on Cleveland Sl. Less Existing Retail Service Subtotal 47,776 136,526 Less Existing Vacant Net -1,224 87,526 1/ Retail SF is estimate based on Qualitative Assessment Source: ESRI Business Analyst; Clearwater Chamber of Commerce; 2008 Table of Contents I. Project Overview and Timeline II. Downtown Overview and Market Assessment Conditions IV. Merchandise Mix V. Implementation Attachment number 1 paef A~ust 2008 Item # 2 12 Stakeholder Interviews Cleveland Street was once a lovely place a to shop People like St. Armand's Circle Cleveland Street Rents Quoted per square foot Approximate: asking $12 triple net . Range from mid to high teens, some low $20 Need a little bit of everything Landlords and real estate professionals interested in process Parking is problem . Always a perceived problem in EVERY city Qualitative Assessment Findings The Qualitative Assessment is a tool for the Retail Recruiter to document storefronts and retail types, as well as identify strengths and weaknesses along Cleveland Street 42% of spaces along Cleveland Street are vacant (recruitment, recruitment, recruitment) 22% of the spaces are non-retail, such as religious uses or offices 8% of the spaces are retail services 28% of the spaces are occupied with retail. entertainment, or food uses . 9% of total are occupied retail . 17% of total are food uses . 2% are entertainment (1 bar) Of the food uses, 45% (8% of total) are Quick Service Only 2 restaurants are full service with both lunch and dinner Attachment number 1 paef A~ust 2008 Item # 2 13 Qualitative Assessment addresses the physical condition of buildings Considers five aspects . Storefront . Fa~ade Display Interior Merchandising Maintenance Each aspect is evaluated on a scale of 1 (poorest conditions) to 5 (best conditions) - relative to Clearwater conditions Highest potential score is 20 and lowest is 5 44% of occupied uses scored a 10 or below Only 11 % scored a 16 or above Common offense Lack of quality window displays (faded images, tape residue, etc.) or no displays at all Poor maintenance (dirty entry ways, interiors, or windows) Fac;ade elements out of scale with each other (i.e. sign band in proportion to storefront) Sparse merchandise Generic storefront systems Outdated shelving or furnishings and for Retail in the Cleveland Street District ;. Growing downtown population ;. Two markets are well-represented II Residents II Visitors )> Lack of storefront maintenance )> No comparable sales for recruitment )> Less thru-traffic after bridge opened ;. Limited critical mass of space ;. Some incongruous facades ;. Non-retail buildings, currently hinder potential retail synergy in primary retail blocks Y Great pedestrian environment Vacancies can be seen as opportunity Approximately 1,000 new residences coming online Cleveland Street momentum ;. $6.5 million 138 slip marina 18 acres of waterfront Attraction, but not location for retail lack of Storefront Maintenance Attachment number 1 paef A~ust 2008 Item # 2 14 What's Old is New Downtown's Inherent Asset After an era of interior-circulated malls and strip centers, downtowns are popular once again Resurgence in downtowns... retail and other uses Suburban centers now attempt to replicate downtowns . Water fountains, public art, sidewalks, faux-facades . Incorporate residential . Pia n events . Same tenants as enclosed mall, but centers are turned inside out )> Names attempt to create downtown image . .. .Town Center . ...Village . Streets at South Point . City Place . Albuquerque Uptown . The District Cleveland Street is the real thing with a great pedestrian scale - Don't lease to strip center or mall tenants General principals of good urban retail streets )> Retail area dearly defined )> Retail has priority at ground level on primary retail streets Retail synergy at ground level is not interrupted with non-retail uses or passive spaces . Office buildings . Closed blinds . Banks Retailers are contiguous (side-by-side) and across the street from each other )> Transportation systems do not hinder retail success Active Business Improvement Districts, development boards, or economic development departments City support Enlightened landlords and brokers Great Merchandise Mix ~I~'.. P.' -~- Attachment number 1 paef A~ust 2008 Item # 2 15 Table of Contents I. Project Over view and Timeline II. Downtown Overview and Market Assessment III. Existing Conditions IV. Merchandise Mix Plan V. Implementation Ultimately the Cleveland Street District will impact the identity and success of Clearwater (including ability to capitalize on potential retail demand) The Merchandise Mix is critical to fulfilling potential retail demand ;.. Merchandise Mix . The collection of retail stores and merchandise in a defined area . Ultimately shapes the identity of downtown for better or worse . Should be a pleasant shopping environment . Should have retailers not found elsewhere in the shopping malls or strip centers ;.. Merchandise Mix Plan . Realistically reflects retail potential . Merchandise Mix Plans identify specific categories of and locations for market- appropriate retailers . Provides a blueprint for the future . Guides Retail Recruiter's prospecting . In public downtown context, can not designate specific spaces for specific retailers Maintaining an ideal Merchandise Mix is an ongoing effort that requires continual management and patience. Attachment number 1 paef A~ust 2008 Item # 2 16 Defining the retail core and primary blocks Interrupt retail synergy of: 1.Two primary retail blocks with the most potential 2. The 100% corner of downtown Full-service unique restaurants a major recruitment target Attachment number 1 paef N~ust 2008 Item # 2 17 Restaurants, Restaurants, Restaurants: Create a dining district Clearwater is in dire need of quality full service restaurants Restaurants are a great energizers for downtown revitalization y Restaurants (if the right restaurant): Cater across all customer types Are destinations Attract people travel farther for restaurants than retail Help markets establish familiarity with Cleveland Street If clustered, function as an anchor Must be FULL SERVICE Table service Lunch and dinner Wait staff No "common" nationally branded chains Why make the trip to Cleveland Street if it exists elsewhere (tourists home or closer to resident home) Full service restaurants of all kinds California Cuisine Greek/Mediterranean Seafood Southwestern French Bistro Nouvelle American Comfort/Southern Attachment number 1 paef A~ust 2008 Item # 2 18 Primary Retail Recruitment Targets Cleveland Street must focus its other recruitment targets Primary retail area is small - approximately two blocks . Can not be all things to all people in two blocks Should find a niche and cohesive tenant mix In addition to restaurants, ERAI ow recommends focusing first on fashion and gifts Fashion and gifts can appeal to a broad array of customers Those buying for themselves or others .. Residents and tourists, .. Impulse and destination oriented Other categories can be expanded upon (the next phase) once the core is healthy Home furnishings (furniture and large home items) Home accessories (small home items) Art galleries Do not say no if a great one wants to be on Cleveland Street More detail on following page Retail Recruitment Priorities General Priorities Primary Retail Opportunity . Vacancies Restaurants Attachment number 1 paef A~ust 2008 Item # 2 19 Fashion and gifts are broad categories that can appeal to many types of customers :;.. Apparel boutiques .Men's and women's .Casual . Resortfswi mwea r -Athletic Apparel . Unisex Gifts (limited souvenirs) Stationary/ca rd/pa per Books Cosmetics/beauty products 'Make-up 'Skin/body care -Hair Fashion and gifts is a very broad category that can appeal to many types of customers :;.. Accessories . Men's and women's shoes . Handbags III Scarves . Belts . Optica I . Jewelry . Guild . Fashion . Handcrafted by Artisans (beaded, goldsmiths) . Estate . Watches Attachment number 1 paef A~ust 2008 Item # 2 20 "Other Categories" Art Galleries Visual arts Photography Ceramics Specialists (oil or water color) Poster/I ithog ra ph ie/pri nt Glass Studios (on periphery or 2nd levels, not in retail cluster/core) Art/Craft supplies Fabrics/linens Home furnishing and accessories Hand-crafted Modern/contem por a ry/u rba n Antiques China/glass Lamps Garden shop (outdoor furnishings and plantings) Arts Theater Destination with cafe open during the day Building already exists on Cleveland Street Not all uses are right for the Primary Retail Street Retail services are important to downtowns, but Clearwater has limited space on primary retail street Locate services in spaces that do not have large windows for merchandising displays Hair Salons " Spa/skin treatment Dry Cleaners Tailor/Alterations Catering Shoe repair Fitness studios (yoga/pilates) Do not recruit fast food chains or franchises Movie theaters Current main stream models do not bring value to street Activity only at night Need large space EXPENSIVE deals to make, not high rent payers Attracts loitering youth (mall developers removed malls for this reason) Independent arts theater with daytime use (cafe) is better approach "National" does not always mean a good fit for Cleveland Street District Typically have aggressive growth plans Why go to Cleveland Street? :-Some national chains may be appropriate Hand-picked Unique in the market Attachment number 1 paef A~ust 2008 Item # 2 21 As the area grows, there will be more demand for retail services; these should be located on feeder streets to Cleveland Street Retail Services: . Dry Clea ners .Tailors .Hair/nail Salons . Spa/Massage . Financial services Quick Service Food . Donuts .Smoothies .Chain or franchise stores (i.e. Subway) Fulfilling the Merchandise Mix Plan: Aspects Beyond Retail Category '" Unique, distinctive storefronts Differentiated from adjacent storefronts and other uses above '" Avoid generic storefront designs, which are often by product of storefront systems New construction and mixed-use buildings are at high risk Great signage Succinct, coloriul, attractive graphics, styled to fit character of storefront Should not state too much information (i.e. hours, website, number, name, merchandise, etc..) Succinct and not repetitive (name should be in 1 or 2 places at most) Engaging window displays Should change every 2 or 3 weeks (great retailers change more frequently) Reflect merchandise sold - nothing else (for example fake plants) Proper interior merchandising Coordinated and organized (color, style, type) Inventory levels, neither cluttered nor sparse Merchandise selection, cohesive, but varied What makes a great retailer? y Employ above retail principals in new infill construction and rehabilitation of old buildings Parking garages, office towers, residential buildings Not all must have retail, but those on primary and secondary retail streets should (do not want to over build retail space where retail is not a priority) Constant with the times and trends Retailers must constantly tweak their merchandise or menus Retail is a dynamic - fast-paced industry Up-to-date look {i.e. Attachment number 1 paef A~ust 2008 Item # 2 22 Principals of Good Retail - Unique and Distinctive Storefront Design Principals of Good Retail - Avoid generic "storefront systems" as shown below Attachment number 1 paef A~ust 2008 Item # 2 23 Principals of Good Retail - Creative, Classic, and Concise Signage Principals of Good Retail - Engaging Displays Attachment number 1 paef A~ust 2008 Item # 2 24 Principals of Good Retail - Creative and Colorful Merchandising Principals of Good Retail - Distinct storefronts can be designed in new and old buildings Attachment number 1 paef A~ust 2008 Item # 2 25 Storefront and Signage Design Guidelines Great resource for downtown development Review and approve designs for new development in downtown Recommendation: New buildings should be designed so the viability of retail is maximized Entryways not on primary retail street, but on secondary No curb cuts, loading docks, etc. on primary retail street Infill development is at high risk for: 1) generic storefront systems 2) designs that are unfriendly for retail These spaces are hard to lease and do not facilitate a retail synergy Merchandise Mix Good buildings begin from the ground up Recommendation: Assure that, where retail is concerned, ground level and storefront designs are appropriate Storefronts distinguished from each other with design - no storefront systems . Monolithic design of tower not carried to pedestrian scale . Storefront flush to the street . Windows for display maximized . Developers should utilized professional retail architects to work with building designers . Cities can mandate this or create specific design parameters for developers that guide how retail storefronts address the street Stores that do not embody these practices of good retail design and mercha nd ise: Can negatively impact retail leasing/recruitment efforts Will NOT add value to the Cleveland Street District Will NOT help towards realizing the potential retail demand Must ensure prospective retailers meet standards that are appropriate for and reflective of market potential Attachment number 1 paef A~ust 2008 Item # 2 26 Beyond the retail.. Old and new can collaborate to create identity, but need the right operators and landlords willing to invest in a concept Involve other potential assets in revitalization . For example, reinvent and embellish old motels Need the right entrepreneurs, operators, and landlords Table of Contents I. Project Over view and Timeline II. Downtown Overview and Market Assessment III. Existing Conditions IV. Merchandise Mix Plan V. . Implementation Implementation (R~t.:liIR~<:rLJitm~nt) is not merely text in a report, but action on the ground. Implementation is how you can fulfill potential supportable square feet Attachment number 1 paef N~ust 2008 Item # 2 27 Retail Recruitment is the most important part of Implementation To be most effective, target recruitment based on Merchandise Mix Plan ;. Requires time-intensive and on-the-ground recruitment ;. The brokerage community is an important part of the downtown real estate community ;. Recruitment necessary to develop prospects is too time intensive for incentive-based brokers (commission is based on rent a nd lease term) ;. Must find stellar independent/local retailers ;. Not necessary local to Tampa MSA Local or independent retailers from other cities will be unique For example, independent women's shoe boutique started Greer, 5C - expanding to Knoxville, TN; Asheville, NC; Greenville, 5C While most national chains are not pioneers, EVENTUALL Y identify and pursue national brands that are: Amenable or prefer urban and street-front retail A great fit for the street Plans and strategies are important tools, but their effectiveness is minimal without a and sustained Central component of the Implementation Program Non-commissioned based salary ;. Well-trained to qualify prospective retailers against a Merchandise Mix Plan " Based on important standards outlined above Understands balance of uses Does not ma ke dea Is Brings viable prospects to landlords or their real estate representative - Match Maker Ensure that great prospects are not lost Works with existing retailers that fulfill the Merchandise Mix Plan - retention Work with City boards and departments to facilitate store opening ERA I DW has jump-started and participated in the implementation of Merchandise Mix Plans with the Retail Recruiter. Attachment number 1 paef A~ust 2008 Item # 2 28 Phase II: .Train the Recruiter (on-the-job) 'Participate in training with other Recruiters . Prospect in Tampa MSA & evaluate targets (ERAI DW & Recruiter) .Develop Salesforce database for recruitment targets Overview of Retail Recruitment In Progress Recruitment Do's and Don't y Approach retailer as a shopper y Search far and wide (independent operators in other cities) y Spend time with prospective retailers and build relationship y Market with appealing data Engage the retail about their store Sell the downtown retail vision );> Be positive Very Time-intensive Recruiters spent between 3 - 5 full days solely on prospecting for tenants, developing key relationships, working with landlords, facilitating lease-sign to open, and following-up with leads. Completed In Progress '" Tell a bad story about downtown '" Highlight unsuccessful retailers '" Identify yourself immediately upon entering store '" Carry lots of materials into store '" Overload retailer with information '" Make a "sales pitch" Attachment number 1 paef A~ust 2008 Item # 2 29 What do retailers look for? y Co-tenancy is the collection of other retailers on the street y Retail likes retail Retailers consider who their neighbors will be .. Great restaurateur will not want to co-locate with Baskin Robbins y Merchandise Mix Plan and designated Retail Recruitment position II Assures prospective tenants that the City is committed to bringing other retailer to Cleveland Street .. Next best thing to existing great retailers y Often, nationals will not sign deals unless co- tenancy requirements can be met y Duplicating types of retailers is OK, and good for business .. Independent home accessories/furniture store in S1. Louis (UMA) would like a West Elm to attract more customers . Good retailers have a defined identity and style different from chains What do retailers look for? r Existinq Sales are described on an annual sales per square foot basis - Sales range based on .Product type (price and profit margin) "Size of retail space r Retailers want to know about other store successes r Strong rents indicate strong sales y Stores must be comparable with the same or higher "Design "Merchandising "Operational standards r High sales at 7-Eleven, for example, would not be relevant for a boutique retailer r Landlords should require sales information from tenants (lease condition) Reflect preferences of potential retail customers Leverage the next great deal or tenant Create unique retail environment Attachment number 1 paef A~ust 2008 Item # 2 30 varies from to No two deals are the same Rent is typically a function of sales In downtowns often between 8 and 10 percent of annual sales Sales per square foot ranges for different types of retailers Jewelry stores have higher sales p.s.f. because merchandise is expensive and stores are small Books store generally have lower sales because low profit margins, low prices, and large spaces An industry rule of thumb for as a standard good sales p.s.f. is $350 per square foot . Enables enough profit for tenant to maintain appropriate inventory levels & maintenance . Provide rent figure that enables landlord to maintain fac;ade and property Mall tenants have more complex rent structures CAM/NNN Percentage rent Low rents indicate low sales in an area Incentives should incentivize key deals that may not happen otherwise or entice excellent tenants Tenant improvements or allowances are often necessary (from Landlord) Subsidies to build-out retail space to retailer specifications May influence rent - no tenant allowance or improvements may result in lower rent Tenant allowances for national chains can range from $75 - $150 p.s.f. for non- restaurant retail . Tenant allowances for restaurants can range from $150 - $250 p.s.f. (minimum of 50% of build-out) THE MORE DESIRABLE THE USE/OPERATOR, THE HIGHER THE TENANT ALLOWANCE City Incentive Program ERAIDW and Clearwater CRA working with Clearwater Downtown Development Board to enhance existing incentive program Clearwater landlords must sign leases that include elements geared to promote Cleveland Street as a whole including: . Every tenant must report sales (good sales are a great recruitment tool) . Stores must remain open all year (good operators do this in seasonal markets) Attachment number 1 paef A~ust 2008 Item # 2 31 Cleveland Street District Retail Strategy Quality of Physica I Environment Potential Customer Market Retail Recruitment to fulfill Merchandise Mix Plan ~ Takes patience and perseverance to revitalize retail ~ As leases turn-over, opportunity to recapture space ~ Initially, local/regional independent operators will locate downtown ~ Nationals will follow when independents have good sales .. Important to still monitor balance of mix )> Beware of national franchises signing long leases (i.e. 20 years) II Limited flexibility of space as Cleveland Street District improves Retail recruitment is an ongoing effort that requires continual management & patience. Many entities are responsible for the success of the Cleveland Street District To make the potential a realitv All groups must commit to the Merchandise Mix Plan and a dedicated and focused Retail Recruiter. Build consensus andCOMMITMENTto the Retail Strategy among property owners and stakeholders Recruit and sign tenants that are in accordance with the Merchandise Mix Plan Landlords/Brokers Clearwater Downtown Partnership Clearwater eRA Clearwater Downtown Development Board Attachment number 1 paef A~ust 2008 Item # 2 32 Cleveland Street District Retail Strategy 1) The study indicates there is a market for more retail in the Cleveland Street District... provided the mix of merchants is appealing to potential customers 2) Without a product in place, no retail dollars will be spent on Cleveland Street District... market penetration and merchandise mix are interrelated 3) Retail Recruitment is FIRST STEP towards revitalizing the Cleveland Street District and creating a marketable product Appendix Attachment number 1 paef A~ust 2008 Item # 2 33 Appendix: Employees Employment Projections for Pinellas County, 1995 - 2015 Forecasts II CAGR % I 1995- 2000- 2005- Category 1995 2000 2005 2008 2010 2015 2000 2005 2015 Construction 24,203 32,229 34,226 34,094 34,816 34,920 5.90% 1.21% 0.20% Mining 457 275 253 251 259 260 Manufacturing 46,977 41,700 41,804 41,891 41,348 41,252 -2.35% 0.05% -0.13% Trans./Comm./Public Utilities 15,397 17,534 18,524 41,891 19,548 19,747 2.63% 1.10% 0.64% Wholesale/Retail Trade 114,165 123,942 134,909 132,600 146,536 148,876 1.66% 1.71% 0.99% FinanceJl nsuranceJReal Estate 1/ 39,569 65,975 68,872 69,047 69,689 69,837 10.77% 0.86% 0.14% Services 182,259 241,464 271,434 276,013 293,543 297,735 5.79% 2.37% 0.93% Government 2/ 45,438 48,876 52,359 51,522 56,535 57,368 1.47% 1.39% 0.92% Total: 468,465 571,995 622,381 647,309 662,274 669,995 4.07% 1.70% 0.74% Note: Does not include Information employment category, includes local, state, and Federal government agencies Source: Woods & Poole; Economics Research Associates, June 2008 Appendix: Resident Demographics 10 Minute Drive 20 Minute 30 Minute Demographic Time Drive Time Drive Time 2007 Population 167,226 300,503 352,385 2012 Population 169,790 303,337 363,213 2007 Households 75,752 135,286 160,081 2012 Households 77,033 136,801 164,929 2007 Avg HH Income $57,654 $68,363 $66,174 2012 Avg HH Income $68,490 $82,179 $81,400 2007 Median HH Income $42,891 $50,258 $47,253 2012 Median HH Income $49,755 $59,118 $55,634 Source: ESRI Business Analyst; ERA; June 2008 Attachment number 1 paef A~ust 2008 Item # 2 34 APPENDIX - Community TapestryTM Explanation Community Tapestry, ESRI's market segmentation system, classifies U.S. neighborhoods into 65 segments based on their socioeconomic and demographic composition. Segmentation explains customer diversity, describes lifestyles and life stages, and incorporates a wide range of data such as demographic, business, and market potential data. built by ESRI's data development team. Sources include data from Census 2000, ESRI's proprietary demographic updates, the InfoBase consumer database from Acxiom Corporation, the national consumer survey from Mediamark Research lnc. Doublebase 2005, and other sources. To increase the analytical value of Community Tapestry, segments are organized into 12 LifeMode Summary Groups with similar demographics and consumer patterns and 11 Urbanization Summary Groups with similar levels of density. Neighborhoods with the most similar characteristics are grouped together, and neighborhoods showing divergent characteristics are separated. National retail chains and brokers often use such psychographic segmentation systems as a short- cut to identifying potential geographic areas in which to locate units. These systems are used less by independent and smaller retail groups. Because of the common usage of this type of system in the retail industry, this retail analysis references the major segments found in the trade area as a point of reference only and is not intended to be ERA's characterization of the households in the market area. As with any system that generalizes socio-economic and demographic groups, the relative utility of the tool diminishes in more diverse communities. In retail submarkets that contain a wide variance in the number and characteristics of socio-economic and demographic groups, the number of segments representing very different life stages and lifestyles makes it difficult for strong conclusions to be drawn. Aua"~ 2008 APPENDIX - Community TapestryTM Identified in the Primary Market Senior Styles 50%: Nearly 14.2 million households in the nine Senior Styles segments comprise one of the largest LifeMode summary groups. As the u.s. population ages, two of the fastest growing American markets are found among The Elders and the Silver and Gold segments. Senior Styles segments illustrate the diversity among today's senior markets. Although incomes within this group cover a wide range, the median is approximately $41,300, attributable mostly to retirement income or Social Security payments. Younger, more affluent seniors, freed of their child-rearing responsibilities, are traveling and relocating to warmer climates. Settled seniors are looking forward to retirement and remaining in their homes. Some of the older, less privileged segments live alone and collect Social Security and other benefits. Their choice of housing depends on their income. This group may reside in single-family homes, retirement homes, or high-rises. Their lifestyles can be as diverse as their circumstances, but senior markets do have common traits among their preferences. This is the most politically active market group, from voting to participating in election campaigns. Golf is clearly their sport of choice, from playing to just watching golf on television. They read the newspaper daily and prefer to watch news shows on television. Although their use of the Internet is nearly average, they are more likely to shop through television shopping channels than online. Traditional Living 16%: Traditional Living includes four markets that convey the common perception of middle America: hardworking, settled families. The group's higher median age of 37.4 years also conveys their life stage-a number of older residents who are completing their child-rearing responsibilities and looking forward to retirement. The aging of the population has not slowed their participation in the labor force. They work hard to earn a modest living and typically own single-family homes in established neighborhoods that are experiencing slow population growth. Residents in Traditional Living's segments buy standard, American cars; belong to veterans' clubs and fraternal organizations; take care of their homes and gardens; and rely on traditional information sources, such as newspapers, for their news. High Hopes 8%: High Hopes includes Aspiring Young Families and Great Expectations segments. The High Hopes group seeks the "American Dream" of homeownership and a rewarding job. Most live in single-family houses or multiunit buildings; approximately half own their homes. Many are willing to move to a new location to seek better opportunities. The residents in the summary group are young and college educated; one-third of the householders are younger than 35 years. Their median net worth is more than $81 ADO-nearly 76 percent of the u.S. median. Households in this group include a mix of married couples, single-parent families, or single persons. Attachment number 1 paef A~ust 2008 Item # 2 35 APPENDIX - Community TapestryTM Identified in the Primary Market Upscale Avenues 8%: Prosperity is the overriding attribute shared by the seven segments in Upscale Avenues. Success has been earned from years of hard work. Similar to the High Society segments, many in this group are also well educated with above-average earnings. However, the choice of housing among the segments in Upscale Avenues reveals their distinct preferences. Urban markets such as Urban Chic and Pacific Heights favor townhouses and high-rises, Pleasant-Ville residents prefer single-family homes in suburban neighborhoods, and Green Acres residents opt for open spaces. Some have not settled on a home yet, such as the renters among Enterprising Professionals; others, such as Cozy and Comfortable residents, have been settled for years. The median household income for the group is more than $66,700, and their median net worth exceeds $175,500. Prosperous domesticity also characterizes the lifestyle in Upscale Avenues. They invest in their homes, from landscaping and home remodeling among the homeowners to new furnishings among the renters. Their leisure activities include sports such as golf and bicycling and, of course, domestic vacations. Although they are partial to new cars, they also save and invest their earnings. Solo Acts 8%: The Solo Acts summary group features singles who prefer city life. Many are young, startup households located in America's more densely populated neighborhoods; some are well established singles who have eschewed homeownership and child- rearing responsibilities. Second only to the High Society segment, this group tends to be well-educated, working professionals who are either attending college or already hold a degree. Their incomes reflect their employment experience, ranging from a low median of $40,400 among the newest households to approximately $91,000 among established singles. Contrary to modern migration patterns that flow away from the largest cities, Solo Acts' residents are moving into major cities. With considerable discretionary income and few commitments, their lifestyle is urban, including the best of city life-dining out, attending plays, and visiting museums-and, for a break from constant connectivity, extensive travel domestically and abroad. Metropolis 5%: The six segments of the Metropolis group live and work in America's cities. They live in older, single-family homes or row houses built in the 1940s or earlier. Those living in larger cities tend to own fewer vehicles and rely more on public transportation, but the majority of markets in Metropolis feature commuters to service-related jobs. Depending on the area of the country where they live, the median value of their homes can range from $52,800 to $373,700. The Metropolis group reflects the segments' diversity in housing, age, and income. For example, ages among segments range from 'Generation Xers' to retirees; households include married couples with children and single parents with children. Employment status also varies from well-educated professionals to unemployed. The median household income of the group is approximately $38,500. Their lifestyle is also uniquely urban-and media oriented. They like dancing and music, especially urban and jazz formats; watch a variety of television programs from news to syndicated sitcoms; and prefer movies to books. Aua"~ 2008 APPENDIX - Community TapestryTM - Primary Market Continued Global Roots 3%: The common thread among the markets in Global Roots is ethnic diversity. Las Casas and NeWest Residents segments represent a strong Hispanic influence in addition to a broad mix of cultural and racial diversity found in Urban Melting Pot and International Marketplace groups. Typical of new households, Global Roots' households are young with modest incomes and tend to rent in multiunit dwellings. The youth of this group reflects recent immigration trends; half of all households have immigrated to the United States within the past 10 years. The households range from married couples, typically with children, to single parents to individuals who live alone. Because households with children dominate this marketplace, it is not surprising that spending for baby goods, children's apparel, and toys is higher here. Residents of Global Roots are less likely to have home PCs but just as likely to use cell phones. They maintain ties with friends and relatives in their countries of origin with foreign travel. Family Portrait 1%: Family Portrait is LifeMode's fastest-growing population. The growth is driven primarily by the rapid increase in the Up and Coming Families segment. Youth, family life, and the presence of children are the common characteristics across the five markets in Family Portrait. The group is also ethnically diverse: nearly 30 percent of the residents are of Hispanic descent. The neighborhoods are predominantly composed of homeowners who live in single-family homes. The majority of households include married couples with children who contribute to the group's large household size averaging more than 3.11 persons per household. Their lifestyle reflects their youth and family orientation-buying infant and children's apparel and toys. Visits to theme parks and zoos are popular. Their vehicle of choice is typically a minivan or a full-size SUV. High Society 1%: The markets in High Society are affluent and well educated. They represent slightly more than 12 percent of all U.S. households but generate nearly one-quarter of the total U.S. income. Employment in high-paying positions, such as professional or managerial occupations, is common. As a result, the median household income for this group, $97,400, is almost twice that of the national median. Most households are married-couple families residing in affluent neighborhoods where the median home value approaches $346,400. Although this is one of the least ethnically diverse groups in the United States, it is one of the fastest growing, increasing by 2 percent annually. Residents of High Society are affluent and active-financially, civically, and physically. They participate in a wide variety of public activities and sports and travel extensively. They are well connected but not "couched." Try the Internet or radio instead of television to reach these markets. American Quilt 0.3%: Location also links the four segments in American Quilt-America's small towns and rural areas. Unlike Factories and Farms, this group represents a more diverse microcosm of small-town life, including the largest segment of Community Tapestry, Midland Crowd. Manufacturing and agriculture workers remain part of the local economy, but American Quilt also includes local government, service, construction, communication, and utility workers. In addition to farmers, American Quilt includes the Rural Resort Dwellers segment, an older population that is retiring to seasonal vacation spots, and the Crossroads segment, a younger, family population that favors mobile homes. Households in American Quilt are also more affluent, with a median income of $43,000, and more are homeowners. However, the rural lifestyle is also evident, with fishing and hunting (and power boats) and a preference for pickups and country music. Aua"~ 2008 Attachment number 1 paef A~ust 2008 Item # 2 36 APPENDIX - Community Tapestry - Secondary Market Senior Styles 56%: Described in Primary Market Upscale Avenues 13%: Described in Primary Market Tradition Living 11%: Described in Primary Market High Society 8%: Described in Primary Market High Hopes 4%: Described in Primary Market Global Roots 3%: Described in Primary Market Solo Acts 3%: Described in Primary Market American Quilt 1%: Described in Primary Market Family Portrait 0.4%: Described in Primary Market Metropolis 0.2%: Described in Primary Market Factories and Farms segments represent rural life-from small towns and villages to farms. Employment in manufacturing and agricultural industries is typical in these small, settled communities across America's breadbasket. Population change is nominal, and the profile is classic. Most households are families, either married couples or married couples with children. By age, the residents of Factories and Farms mirror the u.s. distribution, with slightly more retirees. Median household income is a bit lower, almost $38,000, but so is home value, almost $88,000. Most own their homes. Their lifestyle reflects their locale, emphasizing home and garden care, fishing and hunting, pets, and local clubs. Aua"~ 2008 APPENDIX - Community Tapestry - Tertiary Market Senior Styles 41%: Described in Primary Market Tradition Living 23%: Described in Primary Market Upscale Avenues 10%: Described in Primary Market High Hopes 7%: Described in Primary Market High Society 6%: Described in Primary Market Solo Acts 6%: Described in Primary Market America Quilt 3%: Described in Primary Market Family Portrait 3%: Described in Primary Market Global Roots 1%: Described in Primary Market Metropolis 1%: Described in Primary Market Metropolis 0.2%: Described in Primary Market Factories and Farms: 1% segments represent rural life-from small towns and villages to farms. Employment in manufacturing and agricultural industries is typical in these small, settled communities across America's breadbasket. Population change is nominal, and the profile is classic. Most households are families, either married couples or married couples with children. By age, the residents of Factories and Farms mirror the u.s. distribution, with slightly more retirees. Median household income is a bit lower, almost $38,000, but so is home value, almost $88,000. Most own their homes. Their lifestyle reflects their locale, emphasizing home and garden care, fishing and hunting, pets, and local clubs. Attachment number 1 paef N~ust 2008 Item # 2 37 APPENDIX: St. Petersburg/Clearwater Additional Visitor Statistics Total 5.25 million Visiting Friends & Relatives = 2.61 million (up 2% from previous year) All other = 2.65 million (up 0.3% from previous year) Winter Season (Jan-April) Total = 2.1 million Visiting Friends & Relatives = 1,121,350 (up 2% from previous year) All Other = 929,095 (up 0.8% from previous year) Spring/Summer Season (May-August) Total = 1.9 million Visiting Friends & Relatives = 844,105 (up 1.7% from previous year) All Other = 1,075,020 (down 1.4% from previous year) Fall Season (Sept - Dee) Total = 1.3 million Visiting Friends & Relatives = 639,710 (up 2.4% from previous year) All Other = 644,975 (down 0.1 % from previous year) APPENDIX: Retail Demand Retail Category Table Low Expenditures Low Supportable High Supportable Ft Ft High Expenditures Attachment number 1 paef A~ust 2008 Item # 2 38 APPENDIX - ESRI Detailed Retail Apparel & Apparel Services Men's Women's Children's Footwear Watches & Jewelry Apparel Products and Services Personal Care & Services Health Nonprescription Drugs Prescription Drugs Eyeglasses and Contact Lenses Personal Care Products Food & Beverage Food Away from Home Alcoholic Beverages - away from I HH Furnishings & Electronics Computer TVNideo/Sound Equipment Community Antenna or Cable Tell Color Televisions VCRs, Video Cameras, and DVD PI Video Cassettes and DVDs Video Game Hardware and Softw Satellite Dishes Rental of Video Cassettes and DVI Sound Equipment Rental and Repair of TVISound Eq Household Furnishinqs and Equip Household Textiles Furniture Floor Coverings Major Appliances Housewares Small Appliances Luggage Telephones and Accessories Attachment number 1 paef A~ust 2008 Item # 2 39 Total Retail Exp.2007 Retail: $207 million Food/Beverages: $570 million GOAL: Attract visitor $$ HOW: Recruit full service, non-chain restaurants (i.e. independent restaurateurs with several concepts STRATEGY: 0 visitors a selection Q restaurants tl will not find home or elsewhere in . region Hence, the Importance a Retail Recruiter prospee tenants that fulfill the Merchandise Mix Pia ERA estimates, that newly rec tenants: 1)fulfill the Merchandise Mix I 2)are located and configure appropriately ERA estimates: 300/0 would I restaurant sales Primary Rt Opportuni Addition Retail Opportuni t r Destination with cafe open d the day Building exists Feeder Streets To make the All groups must commit to the Pia dedicated and focused RetailRec Buildconsensusand property owners and stakeholt Recruit and sign tenants that a accordance with the Plan Meeting Date:8/18/2008 Community Redevelopment Agency Agenda Council Chambers - City Hall SUBJECT / RECOMMENDATION: Approve an Interlocal Agreement between the CRA and the City of Clearwater to provide CRA funding in the amount of $134,023.46 to underwrite the cost of additional Community Policing Services by the Clearwater Police Department in the East Gateway CRA District, pursuant to the recently adopted East Gateway District Five-Year Action Plan and authorize the appropriate officials to execute same. SUMMARY: The CRA approved the East Gateway District Five- Year Action Program on May 13,2008. The Action Program responded to public input on the issues of drug dealing, prostitution and street crime by including an action item for increased police presence and crime reduction within the East Gateway District. An allowable funding source for this action item is the use of CRA Tax Increment Financing (TIF) funds. Florida Statutes allows for the use of TIF funds for "community policing innovations" in Community Redevelopment Areas. CRA and Police Department staffs have reached agreement on a proposed scope of services and terms as delineated in the attached Interlocal Agreement. Included in that scope is the delineation of specific, measurable crime reduction targets by which to monitor the success of the initiative as well as providing clear language required by statute assuring that the resources are applied to the CRA/ East Gateway area. Staff recommends approval of the Interlocal Agreement. Funding will be from the CRA East Gateway Project account (388-94849). Type: Current Year Budget?: Other None Budget Adjustment: None Budget Adjustment Comments: Current Year Cost: Not to Exceed: For Fiscal Year: o Annual Operating Cost: Total Cost: $134,023.86 2008 to 2009 Appropration Code 0388-94849 Amount $134,023.86 Appropriation Comment Review Approval: 1) Office of Management and Budget 2) Legal 3) Clerk 4) Assistant City Manager 5) Clerk 6) City Manager 7) Clerk Cover Memo Item # 3 Attachment number 1 Page 1 of 6 INTERLOCAL AGREEMENT This Interlocal Agreement is made and entered into this day of , 2008, by and between the Community Redevelopment Agency of the City of Clearwater, Florida (CRA), a redevelopment agency established pursuant to law, and the City of Clearwater (CITY), a municipal corporation of the State of Florida. WHEREAS, this Agreement is made and entered between the parties pursuant to Section 163.01, Florida Statutes, the "Florida Interlocal Cooperation Act of 1969"; and WHEREAS, Section 163.361 (1) of the Florida Statutes allows for the use of Tax Increment Funding (TIF) funds for community policing innovations in Community Redevelopment Areas; and WHEREAS, the CRA has established a Five Year Plan which contains an East Gateway Character District Strategy, which includes the element to "provide a more visible community policing presence within the East Gateway neighborhood"; and WHEREAS, the CRA has ascertained that the East Gateway area is in critical need of community policing presence in order to specifically reduce drug dealing, prostitution, and street crimes in the target area; and WHEREAS, the CRA desires, through the use of TIF funds, to enhance the community policing presence, specifically in the East Gateway area; and WHEREAS, the CRA and the CITY wish to enter into an Interlocal Agreement in order to provide for the CRA's financial contribution to provide additional community policing presence by the CITY in the East Gateway area above and beyond the current activity levels; and WHEREAS, the CRA and the CITY desire to enter into an Interlocal Agreement outlining the scope of services and responsibilities of the parties. NOW THEREFORE, in consideration of the covenants made by each party to the other and of the mutual advantages to be realized by the parties hereto, the CRA and the CITY agree as follows: Section 1. Term. The term of this Interlocal Agreement will be October 1,2008 through September 30,2009. Section 2. Intent. It is the intent of the parties that the TIF funds paid to the CITY by the CRA pursuant to Section 163.361 (1), Florida Statutes, be used Item # 3 Attachment number 1 Page 2 of 6 to provide a more visible community policing presence within the East Gateway neighborhood. Section 3. Responsibilities of the CRA 1. Function: a. Provide TIF funding in the total amount of $134,023.86 for the contract year, said funds to be utilized by the Clearwater Police Department (CPD) to provide the community policing presence, to be allocated in the following manner: b. $127,444.04 to pay for the salaries, benefits and equipment for two (2) police officers for the contract year. Exhibit "A," Position Enhancement Fact Sheet, attached hereto and incorporated by reference, contains detailed specifications on salary, benefits and equipment. c. $2,829.82 to purchase two (2) fully equipped police bicycles as a cost of $1,414.91 each. d. $3,750.00, the estimated fuel cost for the contract year for a police vehicle used by the two (2) police officers within the East Gateway Area. Section 4. Responsibilities of the CITY 1. Scope of Duties. The services that the CITY will provide will be carried out the CPD. These services are: A) Implementation of a Law Enforcement Strategy in the East Gateway area as follows: Goal: Reduce drug dealing, prostitution, and street crimes. 1. Objective 1: Remove identified dealers and career criminals from the area. Tasks: a) Identify the drug dealers in the area. b) Gather intelligence information utilizing undercover techniques and surveillance equipment. c) Develop confidential informants to assist in furthering crim inal investigations of the "worst of the worst." Outcome Measures: a) Develop two (2) confidential informants in the target area. 2 Item # 3 Attachment number 1 Page 3 of 6 b) Increase by 25% the number of criminal charges filed against drug dealers in the target area. 2. Objective 2: Reduce incidence of prostitution and solicitations by "Johns" in the target area. Tasks: a) Conduct reverse prostitution "stings" utilizing police officers as decoys. b) Utilize directed patrol to discourage prostitutes and "Johns" from frequenting the area. c) Impound vehicles of "Johns) who are arrested for soliciting prostitutes or police decoys in the area. d) Coordinate with the City's Community Response Team to enhance code enforcement in the target area relative to hotels that are know to be utilized by prostitutes. Outcome measures: a) Conduct minimum of three (3) reverse sting operations annually. b) Conduct minimum of two (2) inspections annually in conjunction with Community Response Team of hotels used by prostitutes. 3. Objective 3: Reduce crimes committed by and against homeless individuals in the target area. Tasks: a) Utilize directed patrol in areas known to be frequented by homeless individuals. b) Enforce "Rules of Conduct" as set forth by the Clearwater Homeless Intervention Project (including prohibitions against panhandling, public drinking, public urination, loitering, etc.) Outcome Measures: a) Increase arrests and citations for violations of criminal law or ordinances by 25% over a five-year period. B) In order to carry out the Law Enforcement Strategy referenced above, the COP will provide the following: 1. Two (2) fully equipped police officers to provide law enforcement services to the target area defined as the East Gateway for a minimum of eight (8) hours per day, five (5) days per week. 2. Specific duties, activities, and responsibilities: 3 Item # 3 Attachment number 1 Page 4 of 6 a) The officers will be assigned to a Community Policing Team with geographical responsibility for the East Gateway. b) The Team assignment will always ensure coverage by two (2) officers. c) Schedules of the officers will vary, but coverage will be predominately during evening hours. d) Officers will patrol by both vehicles and bicycles. e) A report of police activities and statistical information will be provided to the CRA on a scheduled basis. f) The officers selected will be experienced, current member of the CPD. 3. An existing, fully-equipped Crown Victoria Police Car. C) All CRA funds pursuant to this agreement will be kept in the CPD's departmental account and will be segregated for accounting purposes in the City records. D) No charges to the CRA account will be made for activities or hours worked by the two (2) officers outside the CRA area, or for equipment used outside the CRA area. D) Other administrative duties as mutually agreed. Section 5. Notice. Sixty (60) days notice by either party to the other pursuant to the Interlocal Agreement shall be given in writing and hand- delivered or mailed as follows: Chairperson, Board of Trustees Community Redevelopment Agency 112 South Osceola Avenue Clearwater, Florida 33756 City of Clearwater Attn: Rod Irwin, Asst City Mgr. for Econ. Development 112 South Osceola Avenue Clearwater, Florida 33756 Telephone: (727) 562-4040 Section 6. Entire Aqreement. This document embodies the whole Agreement of the parties. There are no promises, terms, conditions or 4 Item # 3 Attachment number 1 Page 5 of 6 allegations other than those contained herein. This Agreement shall be binding on the parties, their successors, assigns and legal representatives. Section 7. Indemnification. The CRA and the CITY agree to be fully responsible for their own acts of negligence, or their respective agents' acts of negligence when acting within the scope of their employment, and agree to be liable for any damages resulting from said negligence only to the extent permitted by Section 768.28, Florida Statutes. Nothing herein is intended to nor shall it be construed as a waiver of any immunity from or limitation from liability that the CRA and the CITY are entitled to under the doctrine of sovereign immunity (Section 768.28, Florida Statutes). Nothing herein shall be construed as consent by the CRA or the CITY to be sued by third parties in any manner arising out of this Agreement. Section 8. Maintenance of Effort. The expenditures authorized by this Agreement are solely and exclusively to increase community policing activity and resources. The City agrees that no diminishment of existing police efforts in the East Gateway will occur as a result of this agreement. Section 8. Filinq Effective Date. As required by Section 163.01 (11), Florida Statutes, the Interlocal Agreement shall be filed with the Clerk of the Circuit Court of Pinellas County after execution by the parties, and shall take effect upon the date of filing. IN WITNESS WHEREOF, the parties hereto, or their law representatives, have executed this agreement as the date first above written. COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF CLEARWATER, FLORIDA By: Frank Hibbard, Chairperson ATTEST: By: Cynthia E. Goudeau, City Clerk 5 Item # 3 Countersigned: Frank V. Hibbard Mayor Approved as to form: Pamela K. Akin City Attorney Attachment number 1 Page 6 of 6 CITY OF CLEARWATER, FLORIDA By: William B. Horne II City Manager Attest: Cynthia E. Goudeau City Clerk 6 Item # 3