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HomeMy WebLinkAbout000203 Original ContractAGREEMENT FOR PROFESSIONAL SERVICES BETWEEN THE THE CITY OF PORT ANGELES AND BUXTON THIS AGREEMENT is made and entered into this day of 2011, by and between THE CITY OF PORT ANGELES, a non -cha er code city o the State of Washington, (hereinafter called the "CITY') and Buxton, a Texas Corporation, (hereinafter called the "CONSULTANT In consideration of the terms, conditions, and covenants set forth below, the parties hereto agree as follows: I CONSULTANT'S OBLIGATIONS The CONSULTANT shall conduct and complete, to the satisfaction of the City, a Retail Market Analysis; and the CONSULTANT shall prepare and complete, to the satisfaction of the City, one or more Retail Marketing Packages. The Retail Market Analysis and the Retail Marketing Packages shall be prepared and completed according to the process described in the "Community ID Proposal Section V. Procedures /Scope of Work," marked Exhibit A, The CITY may review the CONSULTANT'S work product, and if it is not satisfactory, the CONSULTANT shall make such changes as may be required by the CITY. Such changes shall not constitute "Extra Work" as related in Section XII of this Agreement. The CONSULTANT agrees that all services performed under this Agreement shall be in accordance with the professional standards and requirements of its profession and in compliance with applicable federal, state and local laws. II OWNERSHIP OF DOCUMENTS Upon completion of the work and payment of all associated fees, all documents, exhibits, photographic negatives, or other presentation of the final work shall become the property of the CITY for use without restriction and without representation as to suitability for reuse by any other party unless specifically verified or adapted by the CONSULTANT. However, any alteration of the documents, by the City or by others acting through or on behalf of the City, will be at the City's sole risk. III DESIGNATION OF REPRESENTATIVES Each party shall designate its representatives in writing. IV TIME OF PERFORMANCE City of Port Angeles Record #000203 The CONSULTANT may begin work upon execution of this Agreement by both parties and the duration of the Agreement shall be as outlined in the "TimeLine, Section VIII. Community ID Proposal," dated August 10, 2011, which is marked Exhibit B, attached hereto, and incorporated herein by this reference. Buxton Professional Services Agreement doc Page 1 of 6 V PAYMENT The CITY shall pay the CONSULTANT compensation for work performed and services rendered as outlined in "Section IX. Fee for Services," which is marked Exhibit C, attached hereto, and incorporated herein by this reference. Payment shall be due 30 days after final completion of each task. Payment for "Extra Work" performed under Section XI of this Agreement shall be as agreed to by the parties in writing. VI INDEPENDENT CONTRACTOR STATUS The relation created by this Contract is that of owner independent contractor. The Contractor is not an employee of the City and is not entitled to the benefits provided by the City to its employees. The Contractor, as an independent contractor, has the authority to control and direct the performance of the details of the services to be provided. The Contractor shall assume full responsibility for payment of all Federal, State, and local taxes or contributions imposed or required, including, but not limited to, unemployment insurance, Social Security, and income tax. VII EMPLOYMENT Employees of the CONSULTANT, while engaged in the performance of any work or services under this Agreement, shall be considered employees of the CONSULTANT only and not of the CITY, and claims that may arise under the Workman's Compensation Act on behalf of said employees while so engaged, and any and all claims made by a third party as a consequence of any negligent act or omission on the part of the CONSULTANT'S employees while so engaged, on any of the work or services provided to be rendered herein, shall be the sole obligation and responsibility of the CONSULTANT. In performing this Agreement, the CONSULTANT shall not employ or contract with any CITY employee without the City's written consent. VIII NONDISCRIMINATION The CONSULTANT shall conduct its business in a manner, which assures fair, equal and non- discriminatory treatment of all persons, without respect to race, creed or national origin, or other legally protected classification and, in particular: A. The CONSULTANT shall maintain open hiring and employment practices and will welcome applications for employment in all positions, from qualified individuals who are members of minorities protected by federal equal opportunity /affirmative action requirements; and, B. The CONSULTANT shall comply with all requirements of applicable federal, state or local laws or regulations issued pursuant thereto, relating to the establishment of non discriminatory requirements in hiring and employment practices and assuring the service of all persons without discrimination as to any person's race, color, religion, sex, Vietnam era veteran status, disabled veteran condition, physical or mental handicap, or national origin. Buxton Professional Services Agreement doc Page 2 of 6 IX SUBCONTRACTS The CONSULTANT shall not sublet or assign any of the work covered by this Agreement to any firm without the written consent of the CITY. X CHANGES IN WORK Other than changes directed by the CITY as set forth in Section I above, either party may request changes in the scope of work. Such changes shall not become part of this Agreement unless and until mutually agreed upon and incorporated herein by written amendments to this Agreement executed by both parties. XI EXTRA WORK The CITY may desire to have the CONSULTANT perform work or render services in connection with this project, in addition to the Scope of Work set forth in Exhibit A and minor revisions to satisfactorily completed work. Such work shall be considered as "Extra Work" and shall be addressed in a written supplement to this Agreement. The CITY shall not be responsible for paying for such extra work unless and until the written supplement is executed by both parties. XII STANDARD OF CARE CONSULTANT warrants that services performed shall be consistent with applicable industry standards. CONSULTANT warrants that the work, products, and services will conform to the requirements of this agreement and shall be performed in a professional, competent and timely manner by appropriately qualified and trained personnel. XIII TERMINATION OF AGREEMENT A. The CITY may terminate this Agreement at any time upon not less than ten (10) days written notice to the CONSULTANT. Written notice will be by certified mail sent to the consultant's designated representative at the address provided by the CONSULTANT. B. In the event this Agreement is terminated prior to the completion of the work, a final payment shall be made to the CONSULTANT, which, when added to any payments previously made, shall compensate the CONSULTANT for the percentage of work completed. C. In the event this Agreement is terminated prior to completion of the work, documents that are the property of the CITY pursuant to Section II above, shall be delivered to and received by the CITY prior to transmittal of final payment to the CONSULTANT. Buxton Professional Services Agreement doc Page 3 of 6 XIV INDEMNIFICATION /HOLD HARMLESS CONSULTANT shall defend, indemnify and hold the CITY, its officers, officials, employees and volunteers harmless from any and all claims, injuries, damages, losses or suits including attorney fees, arising out of or resulting from the acts, errors or omissions of the CONSULTANT in performance of this Agreement, except for injuries and damages caused by the sole negligence of the CITY. The CITY agrees to indemnify the CONSULTANT from any claims, damages, losses, and costs, including, but not limited to, attorney's fees and litigation costs, arising out of claims by third parties for property damage and bodily injury, including death, caused solely by the negligence or willful misconduct of the CITY, CITY's employees, or agents in connection with the work performed under this Agreement. If the negligence or willful misconduct of both CONSULTANT and CITY (or a person identified above for whom each is liable) is a cause of such damage or injury, the loss, cost, or expense shall be shared between the CONSULTANT and the CITY in proportion to their relative degrees of negligence or willful misconduct and the right of indemnity shall apply for such proportion. XV INSURANCE The CONSULTANT shall procure and maintain for the duration of the Agreement, insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work hereunder by the CONSULTANT, its agents, representatives, employees or subcontractors. No Limitation. CONSULTANT'S maintenance of insurance as required by the agreement shall not be construed to limit the liability of the CONSULTANT to the coverage provided by such insurance, or otherwise limit the CITY'S recourse to any remedy available at law or in equity. A. Minimum Scope of Insurance Consultant shall obtain insurance of the types described below: General commercial liability insurance. B. Minimum Amounts of Insurance Liability insurance shall be written with limits no Tess than $1,000,000 per claim and $1,000,000 policy aggregate limit. C. Other Insurance Provisions The insurance policies are to contain, or be endorsed to contain, the following provisions for Professional Liability: 1. The Consultant's insurance coverage shall be primary insurance as respect the City. Any insurance, self- insurance, or insurance pool coverage maintained by Buxton Professional Services Agreement doc Page 4 of 6 Entire Agreement This Agreement and its Exhibit(s) represent the entire agreement between the parties hereto with respect to the subject matter hereof and supersede all prior oral negotiations and agreements. Law, Jurisdiction, Venue and Attorney's Fees The Parties agree that in the event any suit or other legal action is instituted the law of the State of Washington shall apply. Venue shall be in Clallam County Superior Court. If any suit or other action is instituted in connection with any controversy arising under this Agreement, the prevailing party shall be entitled to recover all of its costs and expenses including such sum as the Court may judge reasonable for attorney fees, including fees upon appeal of any judgment or ruling. Amendments This Agreement may not be changed, modified, amended or waived except by an amendment signed by both Parties. To be valid and binding, any such amendment must be approved by the City Manager and by a duly authorized officer of the Consultant. XVI EXHIBITS AND SIGNATURES This Agreement, including its exhibits, constitutes the entire Agreement, supersedes all prior written or oral understandings, and may only be changed by a written amendment executed by both parties. The following exhibits are hereby made a part of this Agreement: Exhibit A Community ID Proposal dated August 10, 2011. Exhibit B TimeLine, Section VIII. Community ID Proposal," dated August 10, 2011. Exhibit C Section IX. Fee for Services. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first written above. CITY OF PORT ANGELES 7. «ENT MYERS CITY MANAGER APPROVED BY: the City shall be excess of the Consultant's insurance and shall not contribute with it. -sk #944- CONSULTANT BUX DAVID GLOVER, CHIEF FINANCIAL OFFICER WILLIAM E. BLOOR, CITY ATTORNEY Buxton Professional Services Agreement doc Page 5 of 6 ATTEST: SSA HURD, CITY CLERK PROFESSIONAL SERVICES AGREEMENT- BUXTON 08 22 11 DOCX Buxton Professional Services Agreement doc Page 6 of 6 Bu 'on IDentifying Customers- 4 ,T /I 1Dentifying Customerse August 26, 2011 Copyright Buxton Company, 2011. All Rights Reserved. City of Port Angeles, WA CommunitylD Proposal Prepared by: Lisa Hill Expiration Date: April 28, 2011 Bu on IDentifymg Customers. INDEX I. SUMMARY II. INTRODUCTION TO BUXTON III. NEEDS /CHALLENGES IV. GOALS/DESIRED RESULTS V. PROCEDURES /SCOPE OF WORK VI. PROJECT TEAM VII. PROJECT REQUIREMENTS VIII. TIMELINE IX. FEES FOR SERVICES X. SIGNATURE PAGE XI. ENDORSEMENTS/REFERENCES Port Angeles, WA: CommunitylD Proposal 1 Burr, IDentifying Customers. I. SUMMARY Port Angeles, WA: CommunitylD Proposal CommunitylD is a proven market study and economic development strategy that can be immediately implemented by Port Angeles. Buxton integrated proprietary technical capabilities with more than 500 cumulative years experience in retail management and local economic development to create CommunitylD. This unique strategy has brought both innovation and a disciplined approach to municipal retail development efforts. During the 60 business days it takes to complete CommunitylD, civic leaders are actively involved in the process and make important decisions that guide the direction and results. The four main phases of the process are: Researching and Verifying Port Angeles's Retail Trade Area This phase starts with the in -depth collection of the same location variables that Buxton uses to qualify locations for retail clients. Because of Buxton's unique capabilities, we can translate this retail specific information into market intelligence that community leaders need to attract and grow their retail sectors and understand how to align initiatives with the current and future needs of the community. Evaluating Port Angeles's Retail Potential The evaluation phase will clarify what makes Port Angeles distinctive and valuable from a retailer's viewpoint. Through daily involvement in retail location analysis, Buxton has acquired the unmatched ability to evaluate a community's retail potential. Matching Retailers and Restaurants to Port Angeles's Market Potential The consumer profile of Port Angeles's downtown trade area will be matched against the customer profiles of over 5,000 retailers and restaurants in Buxton's proprietary database. The final match list is developed with the input of community leaders so that it reflects the needs and desires of the residents. Delivering Port Angeles's Marketing Packages Individual marketing (pursuit) packages for each retailer match are delivered electronically via SCOUT. Our exclusive online marketing system, SCOUT helps you to showcase your city in the best light. It gives you the ability to create presentations and quality documents and to share information in the match reports. Maximum number of users is ten. 2 Bu\ton IDentifying Customers II. INTRODUCTION TO BUXTON Port Angeles, WA: CommunitylD Proposal With CommunitylD, Port Angeles can unleash its full retail potential, seize new retail opportunities and expand existing businesses in its downtown. Since our founding in 1994, Buxton has been a leading force in retail location and development. We are recognized for creating solutions that provide results. Buxton began as a service to help retailers make informed site selection decisions by understanding their customers and precisely determining their markets. Buxton leaders soon realized that the company's expertise in retail location and market analysis could also be leveraged to benefit communities desiring retail expansion. Please note that in this proposal the term "retail" is inclusive of all retail concepts. CommunitylD Designed specifically for use in community economic development programs, Buxton's CommunitylD process has assisted more than 650 public sector clients nationwide, resulting in the development of more than 35 million square feet of retail space. We integrate our impressive technical capabilities with more than 500 cumulative years of retail management and local economic development experience to help municipalities achieve their retail goals. More than simply providing data, CommunitylD supplies custom marketing materials and strategies targeting the unique location requirements of retailers, developers and commercial real estate brokers. CommunitylD clients achieve outstanding success using our tools for retail identification, selection and recruitment. And our clients benefit from our unique understanding of retail site selection from the retailer's point of view. The combination of technical expertise and professional guidance gives municipalities the capacity to immediately implement an effective retail development program. Benefits of CommunitylD With CommunitylD you have immediate access to: Retail Industry Expertise. Gain a competitive position by working with professionals who have years of retail management experience plus current insights into your community and site selection processes and trends. 3 Port Angeles, WA: CommunitylD Proposal Community Development Best Practices. Expand and sharpen your retail development focus by incorporating best practices discovered by Buxton through daily work with municipalities across the nation. Proprietary Systems. Gather useful information by having Buxton's technology specialists analyze your trade area accessing data stored on Buxton's in -house databases. Personalized Content. Advance your retail recruitment program by receiving personal guidance from our staff and ongoing insight into key industry topics via our monthly e- newsletter, webcasts and other interactive tools. Long -Term Partnership. As a Buxton client and partner you have unlimited access to our staff to help optimize your marketing efforts at the International Council of Shopping Centers (ICSC) annual meeting in Las Vegas, NV. Additionally a Buxton representative will be available for on -going calls and emails related to your retail needs. Marketing Data and Tools. Enhance your marketing messages and presentations by using SCOUT, Buxton's online trade area database and marketing tool, available to you for one year after project delivery. 4 IDentifying Customers. III. NEEDS /CHALLENGES Port Angeles, WA: CommunitylD Proposal Port Angeles wants to understand and then capitalize on the retail /restaurant development opportunities. As communities increasingly compete for retail dollars, attracting the attention of retailers has become more challenging than ever. Marketing your community plays a dominant role in today's competitive economy. The challenge for the community is to attract retailers and developers by providing trade area information that is complete, accurate and up -to -date. Using our proprietary methodologies, Buxton will collect and analyze your community's trade area information and give it to you in a format that is easy -to- use and appealing to real estate executives and developers. The best information, however, is useless without a plan for using it. Much more than data collection, CommunitylD is an execution strategy that can help you build or revitalize your existing marketing and economic development program. With CommunitylD, you will be prepared to: Achieve your retail potential by establishing a long -term partnership with Buxton Integrate retail development into your economic development program Increase your success by preparing Port Angeles to meet the needs of retailers Effectively position your community by leveraging your locations' strengths and minimizing weaknesses Convey Port Angeles's advantages over competitors' advantages Establish credibility with retail decision makers Maximize time and resources by not pursuing unqualified prospects Win the confidence and trust of prospects by understanding their priorities Use competitive analysis to close the sale 5 Buxton IDentifying Customers. IV. GOALS AND DESIRED RESULTS Port Angeles, WA: CommunitylD Proposal The primary goal of CommunitylD is to prepare Port Angeles to successfully expand its retail sector and become a proactive partner to local business owners. CommunitylD serves as the framework for developing a sustainable marketing program that not only achieves short -term goals but also endures to ensure the economic viability of the retail sector over the long -term. Such a marketing program will bring the following desired results: Residents' desires to shop and dine at home will be fulfilled Retail leakage will be minimized Tax revenues (property and sale /use taxes) will increase Employment opportunities will grow Port Angeles's ability to capture other economic opportunities will be enhanced V. PROCEDURES /SCOPE OF WORK Once you have engaged Buxton to work with you in developing CommunitylD, a project team will be assigned to guide you through the entire process —from initial data collection to final presentation of the results. This team consists of: Client services manager, who will serve as your primary source of communication during the project Geographic Information System specialist, who will analyze your trade areas and create customized maps and reports Professionals with backgrounds as retail executives and economic development practices Port Angeles, who will address your unique challenges and help maximize Port Angeles's retail opportunities Staff Visits During visits to the community, Buxton's staff is able to make clear and candid assessments of the community's strengths, weaknesses and potential. Our daily involvement with over 1,900 retail and restaurant clients in finding optimal locations keeps us current on retail location trends. This provides a rational and analytical basis for helping Port Angeles decide how to best focus resources on the most promising retail opportunities. Data Collection Buxton uses over 250 consumer and business databases that are updated throughout the year, and in some cases, every month. Although it is possible to 6 Butan� IDentifying Customers. Port Angeles, WA: CommunitylD Proposal obtain these databases for less expense on a community or regional basis, Buxton buys and is licensed to use the complete U.S. datasets. With this information Buxton will compare Port Angeles's potential location to the universe of all retail locations operating in the U.S. The following are some of the more well -known sources used in our studies, but there are dozens more that we employ to provide additional insight: Experian Simmons InfoUSA National Research Bureau Navteq Geographic Data Dunn Bradstreet Business Data Identify Market Influencers All communities have special and often unique features that impact the local retail market and have to be taken into consideration to fully understand the market potential of the community. Such influencers include larger ethnic populations, significant new or expanded developments, military bases, universities and colleges, destination tourist attractions, prisons, medical facilities or major employers. After identifying these market influencers in your community, Buxton will quantify and qualify their influence on the retail market and help to match retailers that can capitalize on these customer bases. You will benefit from the project team's expertise and insight in these four areas: 1. Researching and verifying Port Angeles's retail trade area 2. Evaluating Port Angeles's retail potential 3. Matching retailers and restaurants to Port Angeles's market potential 4. Delivering Port Angeles's marketing packages These four major components comprise the CommunitylD process. Each component is explained in detail as follows: 1. Researching and Verifying Port Angeles's Retail Trade Area The location decision process for all retailers begins with the collection, analysis and evaluation of numerous location variables such as demand density, customer buying habits, economic trends, competition, traffic volumes, and available sites, to name a few. 7 IDentifying Customers. Drive -Time Trade Area Definition Port Angeles, WA: CommunitylD Proposal The CommunitylD process for Port Angeles will also start with the in -depth collection of data using the same location variables that we use for our retail clients to qualify sites for the location of their retail stores and restaurants. One goal is to define current retail situations in Port Angeles, in the trade area and in any neighboring communities that impact on Port Angeles's retail environment. The other goal is to understand the community's expectations and desires. This analysis includes personal visits to the community, collection of data components necessary to conduct the analysis and identification of market influencers. Customers today shop by convenience, measuring distance based on time, not mileage. CommunitylD will employ a custom drive -time analysis to determine Port Angeles's trade area. An example of a drive -time trade area is shown in Figurel. This custom analysis is developed using an in -house database supported by our knowledge of individual retail client's actual trade areas. The resulting drive -time trade area map will be a polygon that more accurately depicts consumer shopping patterns than trade rings. To assure the accuracy of the drive -time trade area, the draft maps are reviewed with community leaders and verified before proceeding with the next step. Figure 1.Example Drive -Time Trade Area 8 Buxion IDentifying Customers. t 2. Evaluating Port Angeles's Retail Potential Port Angeles, WA: CommunitylD Proposal The purpose of the evaluation phase is to understand what makes Port Angeles distinctive and valuable from a retailer's viewpoint and scrutiny. Our evaluations capitalize on Buxton's knowledge about the retail marketplace and the location requirements and expectations of retailers. Combining this knowledge with our economic development competencies allow us to evaluate and recommend proven community practices. Our evaluations do not rely on dated government research or national /state statistics, all of which fail to reflect local realities. Rather, we implement our real -world experience gained from working with municipalities that have opened more than 35 million square feet of new or expanded retail space. We know how to help Port Angeles sharpen your retail marketing strategy, aggressively market the city and improve your competitive performance. 9 Buxton IDentifying Customers. Retail Leakage /Supply Analysis Port Angeles, WA: CommunitylD Proposal The Retail Leakage /Supply Analysis provides an estimate of retail dollars flowing in or out of the trade area. The two main components of this analysis are: 1) current sales (supply) by retail store type, in dollar amounts, and 2) estimated sales potential (demand) for retail store type, in dollar amounts. We first calculate a sales gap index that illustrates your ability to capture your residents' expenditures. An example of this index is shown in Figure 2. The sales gap index provides a relative comparison of leakage /surplus and an estimate of the dollars that are being spent outside the trade area (leakage) and the amount of dollars coming in from outside the trade area (surplus). This report can be run via SCOUT at any location within the map view. Figure 2.Example Sale Gap Index Customer Profiling Bulk ling Material Ilk rid :Supplies 5 nursery and Garden Outdoor New EQurpment5 Sudan( Material Supp y Dealers Other dt.dd ig Materials Milers rtuilefieg Mat ,ials, Lumberyards M=dware.Stoves Mhttand Wi lpaperStores IbrneCenters 00 OE5 10 LS LO 25 3D 35 4.0 The CommunitylD process will identify and analyze all the households in Port Angeles's drive -time trade area. Based on more than 75,000 categories of lifestyles, purchase behaviors and media reading and viewing habits (psychographics), the households in your trade area are assessed to gain an understanding of the types of retailers that would be attracted to your community. Our in -house databases include both traditional demographic data and the most current psychographic lifestyle information for over 120 million households in the United States (as well as up to seven individuals living in each of these households). 10 Each household in a trade area falls into one of 60 market segments reflecting the buying habits of customers in the household. The blue line in Figure 3 graphically profiles the households in a city's trade area. Figure 3: Example Psychographic Profile 18 15 I III II V V ly!' „j I �al� 1 1 iI` I1 1 1 1 0 Retail Site Assessment hPotentiahL i n Potenhal Location :1 Port Angeles, WA: CornmunitylD Proposal ll a, „'��I�VI I,101:'lll',I' I A A, Buxton will analyze a distinct retail location, selected by Port Angeles. Based on our collective experience in retail locations, the following factors are considered: Psychographic analysis of households in trade area Demand for retail goods and services Site setting, situation and configuration Growth plans and relevant development Retail goals of the community Port Angeles to select the retail site to be used for retail matching. Buxton will develop a demand density profile of Port Angeles's trade area. Demand density measures the bottom -line value of the customers in the trade area —who they are, how many there are and what they buy. One of the significant advantages of Buxton is our ability to take the demand density data and to creatively translate it into a proactive market strategy tailored to take advantage of Port Angeles's strengths and to achieve its retail goals. 11 Buaon IDentifying Customers Port Angeles, WA: CommunitylD Proposal 3. Matching Retailers and Restaurants to Port Angeles's Market Potential Once the site for retail matching has been selected and the consumer profiles in Port Angeles's trade area have been determined, the CommunitylD process will match these profiles against the customer profiles of 5,000+ retailers in our proprietary database. In Figure 4, the blue line indicates the customer profile of households in a community's trade area. The red bar represents a specific retailer's customer profile. A similarity between the two profiles as shown in Figure 4 analyzed using Buxton's proprietary retail matching algorithm concludes that this site is an opportunity for a specific retailer to open a successful store. This matching results in a list of possible retailers. To develop the preliminary retail match list, Buxton analyzes a number of factors about each possible retailer to qualify it. This analysis is designed to eliminate those retailers that for any reason would not be a candidate for Port Angeles. Considered in this analysis are such factors as, verification of a retailer currently operating or expanding into your market, location of operations in similar cities, and competition and cannibalization from nearby locations. Once this analysis is complete, the preliminary list of retailers will be discussed and reviewed with Port Angeles. All retail matches will be available to Port Angeles with the ability to select twenty (20) specific retailers for contact information. Figure 4: Example Trade Area Consumers Matched with Retailer Customer Profile 12 15 12 6 'Ir I II I I pl1l i �iGl� D XYZ Company Fotenhal Location I I II P 1I1 y' III I� I'I wmnflrcuwr111111 aar,. Itldfl�tlll�ili�lnlu�il��'I7�sw l l�lln l III A 1 4. Delivering Port Angeles's Marketing Packages Port Angeles, WA: CommunitylD Proposal Buxton will assemble individualized marketing (pursuit) packages for each targeted retailer. At Port Angeles's request, Buxton will customize each marketing package for presentation to individual retailers, developers, real estate brokers or potential franchisees. Because it is tailored to the specific needs of the target audience, each marketing package is ready to use as collateral marketing materials providing compelling and precise information that demonstrates Port Angeles's qualifications as a location. Each marketing package contains: 1. Map of the retail site and trade area 2. Map of retailer's potential customers 3. Retailer match report that compares the site's trade area characteristics with the retailer's locations in similar trade areas 4. Demographic and psychographic profiles of the households in the trade area CommunitylD targets not only specific companies but also the individual in the company who has the responsibility for location decisions. To provide the best possible reception when Port Angeles contacts the targeted retailer, Buxton notifies each company that Port Angeles has been qualified by Buxton as a potential viable location for a store, restaurant or development and should expect to be contacted by a representative of the city. 13 Bu'i IDentifying Customers. Figure 5: Example Retail Match Report (Retail Match Report summarizes a city's location advantages for a specific retailer). CommunityllY (ompany: Retallr.'r RY: Report Dae Segmentation Prolile Minute Drive Timel I a 110 �1111hI�IIVylll ^IlNiuudoa,,tts. j• }1 p �gl� liV d,lrpl i1 Trade Area Comparison (1 Minute Drive Time) nr aegmenlat on Pronle Drhe Tt ne to Dantina,nt aspmente in are Prattle ,Y Average Trade Area DELIVERABLES Port Angeles, WA: CommunitylD Proposal 'l �9" ilPlllultli) I�IICIIIIICIIP�IIIII��ulliul ^r SIC W EERi1 d UNIVERSITY lca Carnrwriitt, USG Profile Match Report Cc mparT 1Eronllrr3r: 3egmer:s Cornp3ny PraNe (AJI CtTer Ce ;mares} ape Profl e l Your CommunI USA Rerzilu Kr/ Site ink Area A■rage Trade Are:0 Curtest Proltcted Total Population 96.039 128,139 135,133 Total Households 36.790 45,799 49,573 Company Dominant Segment Households 23,122 33,871 36,662 Eve S hausehaeisCassled ro one o' sea`enls CeStreet SJ tna'ra:sencli s pestle ant spenttna nattls Z e me h used to deltic the :ale area Any see -nent tat mares _Pat host 3 ter:enl of a r.,1 1t-11 tYaret ar ttie (RED EA Rst- Thase seamenh xtnn the sIte s [ran :me %33 sea {SLUE LIPEI ReMler XYZ'fade a r e a l used r Ns ca are solar m 3ICla"Cn ant ,mulat O l e Ic 1 rC3 t.ntf, USR. CommunitylD deliverables will be presented to Port Angeles via SCOUT, an electronic format (described below). Hard copies of all CommunitylD deliverables including marketing packages are available upon request. 14 B 1ton IDentdymg Customers. Port Angeles, WA: CommunitylD Proposal SCOUT is an online marketing system that will allow you to effectively use CommunitylD by enabling you to showcase your best retail site to achieve maximum results. You can access CommunitylD reports via SCOUT to reproduce maps, site specific data and generate your own custom marketing presentations. With SCOUT you are directly tied to Port Angeles password protected data, maintained and updated in Buxton's databanks. Using your computer you can tailor reports and presentations and immediately respond to questions or information requests from retailers or developers. SCOUT allows you to: Graphically display and count the households that appeal to specific target retailers Create a Leakage /Surplus Analysis report for any location in your community Manage all your retail- specific data, from maps to photos to zoning information, in a central location Merge your community's existing marketing materials with CommunitylD Select the information that best makes your case Store and retrieve information on retail buildings and sites Organize all relevant retail information in a central data center Present all materials electronically to recruit retailers and developers Beginning in the third year, a complete refresh will be provided using updated data. Deliverables include the following: Drive Time Trade Area Map Retail Site Assessment includes Retail Leakage /Supply Analysis and Customer Profile Retail Match List Marketing (Pursuit) Packages An electronic presentation highlighting the CommunitylD process and findings will be a part of the deliverables. It is designed for local presentations to chambers of commerce, civic clubs and other groups interested in the retail development of Port Angeles. 15 B u t o n IDentdying Customers. Port Angeles, WA: CornmunitylD Proposal Present draft Market Study and Economic Development Action Plan to the public and provide a sound execution strategy to implementation. Consumer Propensity Report Marketing and Merchandising Intelligence for Local Business The Consumer Propensity Report (CPR) shows the lifestyle, product, and psychographic likelihood indices for the consumers within the trade area being analyzed. Major retail, restaurant, grocery, and consumer packaged goods firms use this very same information to drive marketing and merchandising decisions. Each analyzed item is assigned a propensity index score with 100 being average. For example, if the consumers within a trade score a 120 for a given analysis item you know that those consumers are 20% more likely to participate in or purchase that item than the average American household. A propensity index score of 80 would indicate that those consumers would be 20% less likely than the average American household to participate in or purchase that item. Information is provided for 32 major categories with over 4,800 total line items. Please note that line items are based upon national -level purchasing and lifestyle characteristics. These line items are then correlated to the underlying household characteristics of the consumers within the trade area being analyzed. Some line items may not be necessarily relevant or available currently in your market or region. The index score in these situations serves to indicate the degree to which the consumers would participate in or purchase that item if it were relevant and available. Often this is taken as an opportunity for expansion of a similar brand or concept within the category. The CPR is designed to assist the City to develop local business retention and expansion strategies. The City will be armed with fact -based data to assist independent retailers to make merchandising and marketing decisions. 16 Buton IDentifying Customers. Apparel Automotive Beverages: Alcoholic Beverages: Non alcoholic Cable /TV /Radio Cleaning Products Computer /Internet Dining Electronics Entertainment /Leisure Financial Services CPR Categories Food: Baking Food: Condiments Food: Dairy Food: Frozen Food: General Food: Meat Food: Snack/Dessert Health and Beauty Hispanic: Spanish Media Hispanic: Demographic Home Furnishings /Appliances HOSPITALITY POTENTIAL AND DETERMINATION The purpose of this analysis is to provide an understanding of the ability to support and attract certain regional /national hoteliers. The following scope outlines the process by which this will be done: 1. Definition of the market area Port Angeles, WA: CommunitylD Proposal Home Improvement Household Products Lawn and Garden Lifestyle Statements Medicines /Drugs /Ailments Pets and Pet Food Print Media Shopping Telecom Tobacco 2. Analysis of the suitability of the site and its position within the market. Factors considered include but are not limited to: a. Existing hoteliers (both local and regional /national) in the market b. Site setting, situation and configuration c. Growth plans and relevant development 3. Evaluation of existing markets and hotel locations to identify those comparable to the potential location. This is a critical step in the process of communicating to potential hoteliers that your opportunity can be compared to their existing experience. Some of the parameters analyzed to create the list of comparable markets and locations can include, but not limited to, the following: a. Population b. Population growth c. Industries and Employment (by SIC) d. Transportation (airports, interstates, transit) 17 Buton IDentifying Customers. IDENTIFICATION OF MATCHES FOR SELECTED SITE 1. Comparison of site trade area with existing hospitality locations 2. Identification of preliminary target list of matching hoteliers 3. Additional analysis of preliminary targets VI. PROJECT TEAM Team members for your project will include Buxton personnel with strong retail and economic development backgrounds as well those from operations: Vice President, Senior Vice President, Operations representative and Client Services representative. Lisa Hill Vice President CommunitylD Division Port Angeles, WA: CommunitylD Proposal As vice president of the CommunitylD division, Lisa works with proactive cities in California with their retail economic development efforts. She works with communities to maximize their ability to generate sales tax revenue and enhance quality of life for their citizens by successfully recruiting new retailers as well as maximizing current retail options. She is focused on communities in California, Nevada, and Utah. Lisa received her B.A. degree from Texas Wesleyan University and is a member of the International Council of Shopping Centers (ICSC). Buxton has worked with more than 500 communities nationwide, helping to recruit over 35 million square feet of retail 18 Buaon IDentifymg Customers. Chip Rodgers Senior Vice President, CommunitylD Division Chip has worked with numerous municipalities throughout the United States to maximize their sales tax growth and quality of life by successfully attracting new shopping and dining options. He has shared his insights and knowledge by speaking to economic development organizations such as Florida City and County Managers Association, Virginia Municipal League, Florida League of Municipalities and Texas Municipal League. Prior to joining Buxton, Chip was with Florida -based MPS, where he worked with city and county governments to develop strategies for delivering services to their residents via the Internet. Chip is a graduate of Oklahoma State University. Buxton has worked with more than 500 communities nationwide, helping to recruit over 35 million square feet of retail. Janet Ehret Client Services Port Angeles, WA: CommunitylD Proposal Janet facilitates communication between clients and Buxton's operations teams. She ensures that the highest level of service is delivered to clients in a timely manner. Janet has worked with more than 250 municipalities throughout the United States. Prior to joining Buxton, Janet worked as office manager of the Real Estate Department at RadioShack. Janet graduated from Mississippi State University with a major in marketing. 19 Bumon IDentifying Customers. Philip Davis Manager /Senior GIS Analyst As senior analyst for the CommunitylD division, Philip oversees every aspect of CommunitylD projects in Buxton's GIS department. His duties include supervising daily operations, working with clients, managing projects and serving as a liaison between analysts and the sales team. Philip has managed the GIS function for more than 350 CommunitylD projects for such clients as San Jose, CA; Atlanta, GA.; and Birmingham, AL. Working on projects for two divisions in the company has given Philip a complete understanding of both the retail industry and municipal needs, adding to his expertise in community retail recruitment. Philip graduated from the University of North Texas with a degree in Geography. Chris Briggs Director of Client Relations CommunitylD Division Port Angeles, WA: CommunitylD Proposal As director of client relations for the CommunitylD division, Chris works to align public sector partner needs with Buxton's ever evolving capabilities. In this role he also serves as a liaison between Buxton's public sector partners and analytic staff. Chris' extensive background with Buxton includes working in Senior GIS Analyst positions with the CommunitylD, CustomerlD and HealthcarelD divisions. Most recently Chris served as Buxton's Director of Operations where he oversaw the people, processes, and technologies that support the entirety of 20 Buxion® IDentrfymg Customers. Buxton's client base. This experience has instilled within Chris a unique perspective as to what Buxton's tools and insights can do to help its public sector partners in their efforts to create better communities. Chris graduated from the University of North Texas. He was named the UNT College of Arts and Sciences Alumni of the Year in 2007, and he was recognized as the UNT Geography Outstanding Alumni for 2007. Chris served as a private sector partner on the planning committee for the 2009 International City Managers Association conference in Montreal. Partner CommunitylD Division Bill is a founding partner of CommunitylD, Buxton's retail development program for communities. For more than 20 years, Bill worked for the Fort Worth Chamber of Commerce, serving 16 years as its president. He is a Certified Economic Developer and is past chair of the American Economic Development Council. A founding member of the Texas Economic Development Council, he has served as the organization's president. Bill was honored with a lifetime membership to the International Economic Development Council. Bill's professional service also includes serving as dean of the Basic Economic Development Course at Texas A &M University. Bill holds a bachelor's degree in marketing from the University of Texas at Austin, and he completed post- graduate studies at Texas A &M University. Partner Buxton Bill R. Shelton, CEcD Harvey H. Yamagata Port Angeles, WA: CommunitylD Proposal 21 Hinton® IDentdying Customers. Port Angeles, WA: CommunitylD Proposal Clients benefit from the expertise Harvey has gained during 35 years in retail, including leadership roles in brick and mortar, catalog and website retailing. His 20 -year career at Tandy Corporation covered the time when the company grew from $350 million to $3.5 billion in sales and took him from retailing in Europe to opening distributors in Asia. He headed the marketing efforts of the RadioShack Business Products division at a time when they held the major share in the burgeoning personal computer market. Harvey received a bachelor's degree from the University of Wisconsin and a master of business administration degree from Texas Christian University. VII. PROJECT REQUIREMENTS To effectively initiate this project, we request that you provide the following: 1. Project Liaison Port Angeles will designate a project manager who will serve as Buxton's primary contact during the project. 2. Community Information and Reports Logo (vector file request from your ad agency and /or printer) Addresses and descriptive information for the three (3) sites that will be evaluated Current traffic count data List of planned retail, commercial or mixed use (either proposed or in development) in the community List of major, national or regional retailers that have closed, left or moved from the community General community marketing materials, data and economic reports Project Launch A conference call with representatives of Port Angeles and the Buxton Project Team will officially launch the project. The project launch will occur when: 1. An agreement is executed 2. The initial payment is received, and 3. The Community Information and Reports are received 22 Buton 1Dentifying Customers. VIII. TIMELINE The following timeline is sequential and cumulative. It starts on the day of the project launch conference call. Business Days Client Responsibilities Provide to Buxton all necessary community information. Start Day 1 Participate in the launch call. Day 6 Day 13 Approve Trade Area Map. Day 18 Day 25 Day 40 Day 50 Day 60 Approve Retail Site Assessment and submit selection of site for retail matching. Submit selections of all retail matches to be included in the Retail Marketing Packages. Port Angeles, WA: CommunitylD Proposal Buxton Responsibilities Participate in the launch call. Trade Area Map post to SCOUT. Retail Site Assessment post to SCOUT. Retail Match List post to SCOUT. Retail Marketing Packages post to SCOUT. By adhering to this timeline, the CommunitylD deliverables (Retail Match Reports) will be sent on or before 60 -days after the launch date. Any missed target dates can delay the final delivery date. If there are extenuating circumstances that prevent target dates from being met, a new timeline will be developed. Delays of more than 45 days in timeline schedule by the community will result in an administrative fee of five percent (5 of the contract price to be charged. 23 Buxton® IDentifying Customers° IX. FEE FOR SERVICES Port Angeles, WA: CommunitylD Proposal The Total Cost of CommunitylD is $35,000; payable as follows: Down payment of: 17,500 Monthly payments of: $1,458 for 12 months 1. SCOUT will be delivered for one -year with this agreement. After the first year there will be a $1,250 per month SCOUT maintenance fee. The first year begins upon completion of the project. Port Angeles may cancel SCOUT at any time with thirty (30) days written notice. If cancellation is within the first three years, the $3,000 set up fee will be charged. X. SIGNATURE PAGE This agreement is between Port Angeles and Buxton (the "Parties for the performance of services described in this proposal. The Parties agree that an independent contractor /employer relationship is created as a result of this agreement. Buxton will not be considered an agent or employee of Port Angeles for any purpose. This agreement may be terminated by Port Angeles at any time upon written notice of thirty (30) days. If this agreement is terminated, Buxton will be paid for services performed up to the date the written notice is received. This agreement shall be administered and interpreted under the laws of the State of Texas. In order to avoid paying State of Texas Sales and Use Tax, Port Angeles may be required to provide Buxton with a certificate indicating it is a non profit corporation and not subject to Texas Sales and Use Tax. 24 B uxton IDentifying Customers. Agreed and accepted this day of Kent Myers City Manager City of Port Angeles 321 East Fifth Street Port Angeles, WA 98362 XI. ENDORSEMENTS /REFERENCES Port Angeles, WA: CommunitylD Proposal 2011. David Glover Chief Financial Officer Buxton 2651 S. Polaris Drive Fort Worth, TX 76137 (Signature) (Signature) Buxton prides itself on exceptional client service that results in ongoing client satisfaction. Following are just a few of many endorsements from CommunitylD clients. Kingsport, TN Jeff Fleming, Assistant City Manager Kingsport, Tennessee is a city of 44,000 in a county of 150,000 in an MSA of 303,000. Kingsport is part of the Johnson City- Kingsport- Bristol CSA (combined statistical area), with a population of approximately 500,000. Both Johnson City and Bristol are substantial retail centers as well Tennessee distributes sales tax revenues based on point -of -sale, so retailing activity is highly competitive among municipalities and counties. There is no vrovzsion for a municipality or county to benefit from sales occurring in neighboring cities /counties, so it is definitely a high stakes proposition. Were you satisfied with the finished product? Yes, we were very satisfied. We were initially disappointed that Buxton did not identify some of the retailers we really wanted. They were very good to explain why we weren't a fit for certain retailers (like Costco, for example). If the numbers won't work, Buxton won't "cook them" just to make it look good. This speaks to their credibility in my opinion. It was an important "reality check" for our elected and appointed leaders to learn that retail isn't just a lobbying effort. It's a market -based research effort plus a lobbying effort 25 B co n IDentifying Customers. Port Angeles, WA: CommunitylD Proposal Was it worth the money? We have landed 2 shopping centers with the assistance of the Buxton data and we are in the process of redeveloping another One generates $55 million in annual sales, the other generates $96 million. The third involves a complete overhaul of our mall (www.kinQsvorttowncenter.com), where private investors are taking it from an appraised tax value of $33 million to $92 million. While all of it cannot be specifically attributed to Buxton, it was certainly an integral part of the success So, yes it was worth the money. We have landed Target, Kohl's, Old Navy, Dress Barn, Lifeway, Shoe Carnival, Maurices, Michaels, Books -A- Million, ULTA, Dick's Sporting Goods, Best Buy, Tomy Thai, Batteries Plus, Ritz Camera, McAlister's, Hobby Lobby, Pier 1, Ross, TJMaxx, Petsmart, Chili's, Cootie Brown's, Salsarita's, Starbucks and Panera Bread. Did it require a lot of city staff time? If so, about how many hours? I wouldn't say it required a lot of time, but Buxton's timeline is controlled by the quickness of response from city officials. We opted to handle it at a staff level, i.e. there was not a retail committee or an elected body involved. I would say we invested maybe a week's worth of 1 staff person's time (mine). Probably the most difficult process was deciding the beginning point for the analysis. We were hypersensitive about favoritism among competing sites. After the analysis was complete, was it easy to set up appointments with the identified retailers /restaurateurs? I have found that it's never easy to set up appointments with retailers /restaurateurs. In my experience, it is more important to support the developer(s) who are working in your community. For example, General Growth (the leasing agent for our mall and one of the largest retail management companies in the world) can get an appointment when a municipality cannot. The Buxton letter and data "greased the skids" for these meetings. GGP and I tag teamed the tenants The tenant received individual letters from both GGP and I. When they arrived, they said they had never heard of Kingsport, Tennessee and now they hear about it every time they turn around. That is the power of the Buxton data. "Top of mind" name recognition that opens doors for your developers to be successful. GGP is just one example. Were you satisfied with the team members that were assigned to your community? Yes, they were great. They were very patient and helpful. As I said, they really helped us with a reality check without making us feel dumb! Have you used SCOUT and is it easy to produce documents? Yes and yes. I have also used it for non- retail projects. For example, we are siting an aquatic facility and I used some of the demographics in that site selection process. 26 Buxton IDentdymg Customers. Port Angeles, WA: CommunitylD Proposal Were there any other hidden fees? Not that I recall. We were pretty skeptical, so we scrutinized greatly We were not disappointed If you were to do it all over again, would you still contract with Buxton? Absolutely. I have been very pleased. South Bend, IN Bill Schalliol, Economic Development Planner Did you go through an RFQ process? No. I met Buxton reps at the ICSC Spring Convention and my Mayor met Buxton reps at a regional ICSC event and we both were impressed with the services they offered and entered into a contract with Buxton through a professional services arrangement. Did you have any viable candidates other than Buxton? No. What we were shopping for at the time we crossed paths with Buxton was education about the retail recruitment and location process. Buxton, through their processes, helped us better understand who we were and what we could achieve. Did you face any opposition to hiring Buxton? If so, any advice on how to win them over? Several are very skeptical. They think we can do it in -house with the existing resources and that the demographic /psychographic information is readily available on the internet. Our local newspaper quoted some of our business leaders as saying, "We get three of us in a room, get some beer and pizza, and we could put together the same report that this Texas group is doing. How are a bunch of cowboys going to know what we need up here in South Bend I can tell you from our specific experience, you can't do in -house what Buxton can do. The internet only will get you so far. And the key piece of information that the Buxton people give you that other services can't is the psychographic modeling component Did Buxton deliver on the deliverables promised under your contract? Yes. We got everything promised and more. The data was fantastic and has been used again and again. We asked for an electronic copy of all the data and have put together data CD's for all of our real estate professionals and others that can use the data. Were there any "hidden" fees or surprises outside the contract with Buxton? We actually got more than we paid for. When we first started the process, we thought we were buying a product (and we did), but we also bought a relationship and so as we had questions we bounce questions off our reps. They have been great to work with. When you received your target information did the Buxton team give you any training or pointers on how to approach the target? 27 Bu\to IDentifying Customers. Port Angeles, WA: CommunitylD Proposal That is the million dollar question The answer is no and it is really no fault of Buxton's. As I have learned from the user community, everyone goes through the process for different reasons and uses the data for different purposes. We didn't really think through how we would use the data, so we struggled with things once we got our deliverables. But because Buxton has learned from communities like ours, they have created a very helpful user network to put communities in touch with other communities. If you sign with Buxton, people all over the country are using this data and can help guide you. Did you hire a fulltime recruiter or did you handle the target contact with in -house staff? In addition to doing retail development, I do property acquisition, demolition coordination, and many other things Once we realized we had all of this great information and had no tools to use it, we got all of our real estate reps and developers together, gave them the data, had a Buxton rep in to explain the data, and they have been using the data to bring retail to South Bend. When you don't have time to do it yourself, find people that do the job and use them, use them, use them. If you hired someone, what qualifications did you look for? A real estate background with some knowledge of marketing or a marketer with knowledge of retail would have been helpful. I think every person you talk to about Buxton would have a different answer based upon the needs. If you did it in house, what qualifications /training did the person have? In my case, we got very involved with ICSC (International Council of Shopping Centers) and tried to learn as much as possible about retail and how it works. Did any of the targets suggest new construction as an option? Several of the retailers have built new construction or have become tenants in new construction projects. How many interested targets did you have and of those how many ended up moving to your location? How many of those are still there? Our process for our retail list was a bit different. Our market is a pretty commercial heavy market and so we were looking for retailers that were here or looking to expand. We were also trying to find tenants for older commercial corridors or for other areas. We have had one true success off of our selected retailer list, but we have several that were on our original match list that we used the Buxton data to attract or support their decisions. The psychographic data was a good tool in those decisions Of interested targets, what was their timeline for opening a location in your area? Texas Roadhouse, is open and is operating well above expectations. And with operating 28 Buton 1Dentitymg Customers. Port Angeles, WA: CommunitylD Proposal taxes, sales taxes and employee taxes that the restaurant pays, our study has paid for itself with just this one hit. If you had it to do all over again, would you do anything different? If so, please explain. Yes. We would have created a retail strategy and thought through the process a bit better. The advantage that new users to the Buxton process have is the experiences and successes /failures of those that have come before them. Get involved through the Buxton process and it will work well for your community. Rochelle, IL Peggy Friday, Commercial /Retail Development Coordinator The value of the CommunitylD Study is being realized each time we ascertain a new development project in Rochelle The psychographic and demographic facts have been well received by developers, brokers, retailers and entrepreneurs whose due diligence has brought them to our community. The addition of the SCOUT tool is consistent with the City's new technology brand and updated mission and vision statements Your generosity will be felt each time the SCOUT is used to promote Rochelle and Buxton We are pleased with the quality of your product and the superior level of customer service we have experienced. The professionalism of your staff is a direct reflection on the management team at Buxton You continue to exceed our expectations. Clemson, SC Andy Blondeau, Program Manager We're running out of places to put our new businesses... The Buxton marketing piece got us in the door The site selector they sent to meet with us referenced the folder and said he was there as a result Pinetop- Lakeside, AZ Connie Boggs, Main Street Executive Director Tell us your level of satisfaction or dissatisfaction with Buxton's report. Did Buxton deliver what they promised, on time and for the price you set with them? Our satisfaction with the Buxton CommunitylD report has been tremendous for Pinetop- Lakeside. We met with several of the retailers identified by the report at ICSC in Las Vegas. I was able to present them with their own individual study. Buxton delivered what they promised, on time and at the price we agreed on. They didn't just do a report for us they became involved in the community and they call us to find out what else they can help us with often They dust don't drop you after their work is complete. 29 Buton IDentifymg Customers. Port Angeles, WA: CommunitylD Proposal Would you use them again? If so, why? We will use Buxton again when it's time to update our report because of the initial work they did for us. We love working with their staff of professionals. Tell us your opinion on the success you have had, or not, in getting any recommended companies to locate to your area. After our meetings at ICSC I have followed up on the companies we met with. I am working on 2 big -boxes as we speak. Buxton has certainly opened the doors for us. Retailers recognize the Buxton name and realize our community is serious about retail if we took the time and money to have Buxton work for us What role do you believe the Buxton data may have played in supporting your recruitment efforts? There is no better place than Buxton to get the best data out there. We depend on our second homeowners and data on this is not available or we could never have anyone else tell us where to find it except Buxton. When you present the Buxton report with the data available in your community to a retailer they listen. If you've been successful, or if your answer is no so far, do you know if other retailers are seriously considering your trade area because of this process? Buxton isn't the only answer to recruiting retail to your community. It is a tool. Your economic development team needs to be pro active with the goals you have. In addition, to the Buxton report we just completed an economic development DVD along with community tip sheets that are also being sent to the retailers Buxton identified. It's an ongoing process If I ever have any additional questions about a certain retailer not identified by Buxton I can call my representative and you can rest assured I will have a call from him before I hang up the telephone. The process is lengthy.. meetings, telephone calls, emails. Some of the things they require are aerials (expensive unless you have a friend who has an airplane), site plans etc. I have no doubt that they will locate but it's not a 30 day turn around if that's what you are expecting. How aggressive have your local recruitment efforts been since receiving Buxton's report? What role did it play in the outcome? You don't let the Buxton report sit on a shelf and gather dust if you are serious about retail recruitment and our community is. Our Town Council is very pro- active and they increased my operating budget this year to give me the needed tools to do a better job. I am a one woman operation. I love what I do for our community. Duncanville, TX Earle Jones, Director of Economic Development We have had a wonderful relationship with Buxton. Not only did they provide us with a Phase 1 Phase 2 report in 2004, they have continued to work with us on various 30 Bu IDentdymg Customers. Port Angeles, WA: CornrnunitylD Proposal projects of importance to our overall City economy. We are a city of almost 38,000 residents and are small, 11.2 square miles, contiguous to and surrounded on three sides by Dallas. We are what is known as a first tier suburb, in that we are closest of the southern suburban communities that ring Dallas. Our major development took place in the 60's, 70's and early 80's. Our growth stagnated, and we have revitalized the City in the last 5 years, with some innovative new developments. Our most recent project success involves a 150,000 square foot Costco Club Warehouse, and a mixed -use multifamily and retail project with over 100,000 square feet of retail and 216 units of high quality, gated multifamily rental units along a creek which is to be a dedicated City Park with water flow, fountains, landscaping and lighting. We believe that Buxton played a significant part in our success in getting these projects. Thus far we have a number of restaurant prospects, several banks and a fitness club who have been interested in this location. I would most certainly recommend Buxton and their services, for the reasons outlined above. Denton, TX Linda Ratliff, Director of Community Development Get your money's worth? Yes. In addition to the CommunitylD product, we asked them to review an incentive request we received from a developer for a 50 acre power center. We had never given retail an incentive at that time. Buxton's help with that project saved us $750,000 in incentives and the project was built and produced almost $2M in City property and sales tax in 2006. Get any of the people on the list of 20 prospects to locate in Denton? We either got the retailer or one similar For example, instead of a Circuit City, we got a Best Buy; instead of a Linens N Things, we got a Bed Bath Beyond. The only one we have not yet gotten is a furniture store. We have a few furniture stores in town. We were hoping for a Haverty's or something similar. What was the most important thing(s) you got from the study? We learned a lot about retail recruitment. The information was helpful in putting together our marketing pieces to distribute at ICSC (International Conference of Shopping Centers). We also learned the types of retail Denton could expect to recruit. Would you use their services again? We have. We called on Buxton to update their data for four sites that we highlighted in our retail piece. They turned it around very quickly so that we could get our brochure 31 Buton IDentifymg Customers. Port Angeles, WA: CommunitylD Proposal printed in time for the annual ICSC trade show. They also let us display our brochures at their booth at ICSC. Cupertino, CA Kelly Kline, Redevelopment /Economic Development Manager Is there an estimated or "ballpark" retail/commercial square footage number that can be attributed (totally or in part) to Buxton's services? Are there any specific retailers that have located in Cupertino or another jurisdiction you served that can be attributed (totally or in part) to Buxton's services? It's very hard to make those connections. Let me give you some feedback and examples that explain why. There are rarely immediate results in retail. Most respectable retailers are planning stores for 2 -3 years down the road in their development cycle By the time you know for sure whether the eagle has landed, you, the City Manager, and the City Council may be gone! This money must be viewed as a long -term investment. Sometimes deals go awry based on market conditions. We were very close to landing Borders in Downtown San Jose (thanks to Buxton's efforts) and then the bottom fell out of the bookstore industry. They put a halt to all deals they had been pursuing, and now may not even last as a company. The Buxton match list can give you leverage with a developer who is claiming that there is no interest, or different interest than what actually exists. I recently used my match list to retain an existing shoe store. Their sales had been down, and they were ready to abandon our city. I showed them that several of their competitors were on our match list, and that there is significant leakage in this category. This data made them decide to give us a second shot. They are now going to increase their marketing efforts and store presence before they make any decisions about the future of the store. Bottom line there are definitely a few total and partial success stories. But, more importantly, I can say that the list has opened doors previously closed tight, has extended conversations with retailers who had previously been "lukewarm and has provide value to me in so many ways that I can't keep count. Buxton is my partner in retail recruitment. This needs to be viewed as a holistic and powerful tool for your program It will take years for your program to be successful and to have the tangible success that your decision makers are looking for. This will be an excellent first step. If I were you I would try to steer them away from trying view success as a one -store opening it's a dangerous road to go down! In some ways, making this 32 Bux'ton IDentifying Customers. Port Angeles, WA: CommunitylD Proposal expenditure is a stake in the ground a commitment from the city that they value retail, and that they are serious about their recruitment efforts. A relationship with Buxton sends a very strong message to the retail community. 33 77, B u" ton tDenutymg Customers. VIII. TIMELINE The following timeline is sequential and cumulative. It starts on the day of the project launch conference call. Business Days Client Responsibilities Provide to Buxton all necessary community information. Start Day 1 Participate in the launch call. Day 6 Day 13 Approve Trade Area Map. Day 18 Day 25 Day 40 Day 50 Day 60 Approve Retail Site Assessment and submit selection of site for retail matching. Submit selections of all retail matches to be included in the Retail Marketing Packages. EXHIBIT "B" Port Angeles, WA: CommunitylD Proposal Buxton Responsibilities Participate in the launch call. Trade Area Map post to SCOUT. Retail Site Assessment post to SCOUT. Retail Match List post to SCOUT. Retail Marketing Packages post to SCOUT. By adhering to this timeline, the CommumtylD deliverables (Retail Match Reports) will be sent on or before 60 -days after the launch date. Any missed target dates can delay the final delivery date. If there are extenuating circumstances that prevent target dates from being met, a new timeline will be developed. Delays of more than 45 days in timeline schedule by the community will result in an administrative fee of five percent (5 of the contract price to be charged. Buton IDent Eying Customers. IX. FEE FOR SERVICES The Total Cost of CommunitylD is $35,000; payable as follows: $17,500 Due upon delivery of the RSA $17,500 Due upon delivery of the Marketing Packages Port Angeles, WA: CommumtylD Proposal 1. SCOUT will be delivered for one -year with this agreement. EXHIBIT "C" After the first year there will be a $1,250 per month SCOUT maintenance fee. The first year begins upon completion of the project. Port Angeles may cancel SCOUT at any time with thirty (30) days written notice