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04/15/1992DOWNTOWN DEVELOPMENT BOARD WORKSHOP April 15, 1992 Present: Mary Vaughan, Chairperson Carol Horne-Warren, Vice-Chairperson Sarah Caudell Dennis Dean Absent: Walter Powell Lillian Trickel Phil Henderson Mayor Rita Garvey, Ex-officio member Lee Regulski, Ex-officio member Also present: Michael Wright, City Manager Jerry Sternstein, Economic Development Director Sue Diana, Assistant City Clerk The workshop was called to order at 8:00 a.m. in the third floor meeting room of the First National Bank of Clearwater, 400 Cleveland Street, Clearwater, for the purpose of discussing the proposed recruitment program for downtown. The program was presented by Pearson, Thomas/LKW and Jean Sherry of the agency distributed the Downtown Recruitment Program Marketing Plan Proposal. Mike Thomas, president of Pearson, Thomas/LKW said that since the inception of the agency's program in 1989 efforts have been focused on improving the presence of the downtown within the business and development community locally, statewide and nationally. He found Clearwater to have an open development attitude and an attractive environment for business. He said within the past year three major redevelopment projects, the East End project, the Maas property and Jesse Goodman's World in Clearwater have evolved. He said there has been significant positive activity strengthening the overall business environment and marketability. The proposed 1991/92 marketing plan presented to the Board in June of 1991 identified the East End project, retention and recruitment as areas of emphasis. The purpose of the recruitment program is to assist downtown property owners within the redevelopment district, real estate brokers/agents of existing available space in soliciting interest from relocating or expanding businesses to the downtown. Mr. Thomas said Clearwater is operating in a very competitive environment due to the number of economic development organizations throughout the country and the number of cities with populations over 100,000 who have an active redevelopment program. He found it important for Clearwater to have a strong presence in the marketplace to attract interest. Mr. Thomas reviewed the recruitment program and indicated there are model programs to follow. He said experience gained in working with other economic development or related groups provides valuable reference. In October 1991, an advisory meeting was held to gain insight from business leaders and industry related professionals. Recruitment is an ongoing process with its success dependent upon the product, economic conditions and personalities. There are no guarantees for positive results and he indicated not being a player in the area of recruitment could have an adverse effect on overall redevelopment efforts. He said what the agency is presenting today is a systematic plan of action. As particular things are done they are being tested for performance. In all cases the board will be asked to provide input and final approval for all projects. The plan identifies markets of opportunity, recommends methods by which these markets can be reached, suggests marketing materials, recommends timelines, budgets and methods of evaluation. Jean Sherry stated the program was based on extensive research. She felt the systematic approach will maximize the program. She said the research which is based on professionals and their best numbers simply shows there exists an opportunity in the downtown to attract interest and provides direction. She said resources used include the Moran Stahl & Boyer report which analyzes the labor market, business operating conditions and the quality of life recommending specific industries to target; the Hunter Interests, Inc. retail market analysis which profiles the retail supply and demand; the CACI, Inc. demographic profile and retail expenditure comparison, the National Decision Systems which provides population statistics; and C-MAP computer mapping and planning. Other market research was obtained from the St. Petersburg Times, the Florida Department of Commerce, the Bureau of Economic Analysis, the Maddux Report and other sources. She said by looking at the population and education figures it could be assumed the downtown had a very professional and skilled labor force and it was felt a high tech industry could be attracted. Due to the vacancy rate downtown, it was felt there is a need to recruit for office industry. Based on the research, the agency has structured a potential target list in the office and retail industries classifying them according to SIC codes which are used to identify markets. Michael Cochran, founder and president of C-MAP, stated geographic research provides basic facts making no attempt to predict future distributions of populations or economic activity and utilizes mathematics and statistics to describe or model the distribution of populations and economic activity over time and has predictive value. Geographic research is low in cost. Data bases make it easy to obtain information with a wide variety of business reports available. He said he uses Claritas/NPDC one of the largest vendors of demographic and population information in the country for his studies. He also uses information obtained from the census bureau, government data, Bureau of Labor and Statistics and other business statistics. He said the two basic study areas commonly used are the ring study which is the most popular for small area analysis calculating a circumference and using it as a boundary and the isochrone study or lines of equal travel time. The data obtained from utilizing the travel time zones as study areas has a link to "real life" behavior. Mr. Cochran said an estimate of the demand for goods and services is provided in a Consumer Spending Pattern (CSP) report for each time zone in the primary market area. He said the two important categories in the CSP report are the dollar expenditures and the market index. The categories of "household equipment and services" and "health care" show higher than average expenditures for the primary service areas. He discussed the potential markets of opportunity in the retail sector such as apparel and accessories, home furnishings and equipment and eating and drinking places; and those in the office industry sector such as insurance carriers, motion pictures, amusement and recreation services and educational services. Ms. Sherry spoke on marketing strategies indicating her agency proposes to reach targets through direct mail, direct media and public relations. She said the agency anticipates "Ventures" will become a valuable marketing tool in the recruitment program. She suggested structuring a timeline for the remainder of the fiscal year for organizing the basic recruitment start-up program elements. She said the recruitment program provides for measures of performance and the direct mail, media and public relations marketing areas will be monitored for results and a written monthly summary can be provided. Ms. Sherry reviewed the current DDB promotion budget distribution along with the carryover East End project, the proposed recruitment budget for the remainder of the fiscal year and the preliminary budget for the recruitment program for 1992/93. Discussion ensued in regard to the health care industry and working with Morton Plant Hospital for relocating medical personnel. Concern was expressed in regard to past studies not being very effective in bringing people downtown. A question was raised if those individuals conducting the studies approached the business owners. Ms. Sherry indicated the studies show what is in the marketplace and what is going on. Discussion ensued in regard to upscale shops and whether any offer had been made to entice these type shops to come into the downtown. It was indicated the agency can generate an interest and get the message out to look to Clearwater if future expansion or relocation plans are being considered. It was felt this program would provide an opportunity to work with local real estate agents to help find buyers for their listings for empty space or land. There was discussion regarding the amount of money already spent on advertising and it was questioned whether it should have been spent to help property owners or businesses come in by paying some of their rent. It was felt the DDB budget was not significant enough to offer incentives. A statement was made upscale businesses have expressed an interest in coming into downtown Clearwater if compensated, and it was again pointed out the DDB does not have that kind of money. A question was raised if any research had been done to see how much money an upscale business might want to relocate to downtown. Discussion ensued in regard to the type of businesses that would survive in the downtown. It was indicated businesses leave due to lack of visible parking and fast traffic. Six citizens spoke with concern expressed regarding the condition of some vacant properties, especially the John Baldwin building, hindering businesses from locating in the downtown. It was indicated the 3-foot alleyway between this building and another is full of trash, garbage and rats and is not being maintained. It was indicated garbage containers in front of some of the businesses are in need of repair and the streets are not being swept regularly. It was questioned whether tax dollars go toward street cleaning and it was indicated, if this is not the case, property and business owners should be notified they are responsible for keeping their own streets clean. A big picture recruitment program was favored as it would enable all the property owners to get the word out and to share in the benefits. It was felt the DDB should not subsidize private property by helping pay the rent. It was indicated it is critical that leads go out the same day they are received and that following up on these leads is essential. It was also felt there needs to be a method of evaluating how many responses are received from a certain number of mailings. Concern was expressed the City, DDB and Chamber of Commerce are going in different directions. A statement was made that government is the number one white collar employer and should be the target of recruitment. In response to a question, it was indicated target markets need to be identified first before direct mail is sent. In response to a question, it was indicated the City's Economic Development Department would be the clearing house for leads and the tracking of these leads would be monitored. There was discussion in regard to the immediate need for a retail survey of the downtown. In response to a question, it was indicated approximately 70-80 demo packages on the downtown have been sent out. The Chairman said a formal presentation on the recruitment program will be made at the April 27th Downtown Development Board meeting. In response to a question, it was indicated it was not known what Banana Republic location was sent a demo package; and it was requested another package be sent. There was discussion regarding a 1983 property standard ordinance passed by the Board. It was indicated this ordinance is difficult to enforce and a request was made to ask the City to explain why. The meeting adjourned at 9:50 a.m.