Loading...
HomeMy WebLinkAbout2005-06-07; Housing & Redevelopment Commission; 374; Carlsbad Village Market Analysis2 4B# 374 TITLE: MTG. 6/7/05 CONTRACT FOR CARLSBAD VILLAGE MARKET ANALYSIS - AWARD AND FUNDING OF PROFESSIONAL SERVICES HOUSING AND REDEVELOPMENT COMMISSION - AGENDA BILL DEPT. HD. e?. CITY ATTY. DEPT. H/RED I CITY MGR. RECOMMENDED ACTION: Adopt Housing and Redevelopment Commission Resolution No. awarding a contract for consultant services to The Community Land Use + Economics Group to complete a retail market analysis for the downtown Village Area of Carlsbad, and approving a budget appropriation in the amount of $100,000 to fund the subject contract. 396 ITEM EXPLANATION: In the effort to continue revitalization activities in the Village Redevelopment Area, it has become apparent that a retail market analysis would be helpful. The information obtained by this analysis would help the Redevelopment Agency to develop a comprehensive downtown business development plan and marketing/promotionaI strategy. This plan and strategy would be beneficial to not only the City and Redevelopment Agency, but also the Carlsbad Village Business Association and the Chamber of Commerce. It will help to ensure that the Village continues to serve as a high quality, specialty retail center for the residents of Carlsbad and its visitors. To identify an appropriate consultant for the subject project, staff identified and contacted four professional consulting firms who we believed provide these types of retail analysis services. Of the four firms contacted, only two submitted service proposals. We received proposals from the Rosenow Spevacek Group and the Community Land Use + Economics Group (CLUE Group). After reviewing the proposals consistent with Carlsbad Municipal Code Section 3.28.070(A) for acquiring professional services, staff identified the CLUE Group as the best consultant for the project for several reasons. First, the principals have demonstrated competence in this area. Kennedy Smith is the former Director of the National Main Street Center and one of the nation’s foremost experts on commercial district revitalization and independent main street businesses. Leslie Tucker is the former assistant director for public policy for the National Trust for Historic Preservation, and a well-known author of numerous articles on historic preservation, smart growth and community revitalization. Second, the cost for services has been determined to be fair, reasonable and offers the best value together with options to reduce costs at the discretion of the Agency. Third, the approach submitted in the CLUE Group’s proposal is comprehensive and will involve many members of the community in the process. Finally, the CLUE Group’s extensive experience in working with downtowns throughout the United States will help the Redevelopment Agency to identify new and innovative ideas for addressing business development opportunities in the Village Area. The Group will be an excellent resource as a result of their vast experience working with a variety of cities throughout the United States. The proposed project has four components: Retail Analvsis The retail analysis is the core activity, and will provide the base for all derivative strategies. The analysis will involve 5 major steps: 0 Completion of consumer surveys 0 Evaluation of the Village Area current economic condition. Completion of a sales void analysis Analysis of the information gathered Identification, testing and finalizing of 2 to 3 market based strategies that will guide the Village revitalization effort I AB# 374 Page 2 Business Development Plan The Business Development Plan will provide detailed information on the profiles of specific types of businesses that the CLUE Group believe are the most likely to be successful in the Village Area. The Plan will also provide a detailed tenant mix plan and “cluster” strategy for physically locating businesses within the Village over time. Marketinq/Promotional Strategy The Marketing/PromotionaI Strategy will define a core retail marketing concept for the Village that reinforces the “brand” and that actively engages a range of community organizations. On-Goina Guidance and Traininq The CLUE Group has offered to conduct one or two training workshops annually with participants in the effort to implement the Business Development Plan and MarketinglPromotionaI Strategy. They have also offered to participant in quarterly conference calls with key participants and conduct an annual progress evaluation. These services would be provided as requested by the Agency/City. FISCAL IMPACT: The maximum contract cost for the proposed project is currently established at $95,000. Pursuant to Carlsbad Municipal Code Section 3.28.070(A) for the acquisition of professional services, staff has determined that the proposed price is fair and reasonable and offers the best value for the desired services. This cost includes completion of the retail analysis, development of the Business Plan and Marketing/PromotionaI Strategy, and one year of ongoing guidance and training. If additional guidance or training is requested, the approximate cost will be an additional $10,300 per year. Staff is requesting an appropriation of $100,000 at this time to cover the contract costs and additional administrative expenses that may be related to said project. With acceptance by the Housing and Redevelopment Commission, a total of $100,000 in funding will be appropriated from the Village Redevelopment Area fund balance. The fund balance in the Village Redevelopment Area Fund is essentially a loan from the City’s General Fund. The loan will be repaid with future tax increment funds generated within the Village Redevelopment Area, per the City and Redevelopment Agency Cooperation Agreement approved on August 7, 2001. The loan constitutes an indebtedness of the Housing and Redevelopment Commission. The terms of repayment require the Commission to repay the City together with accrued interest calculated at a variable rate based upon the annual average rate of return earned on the City’s investment portfolio as determined by the City Treasurer. EXHIBITS: 1. Housing and Redevelopment Commission Resolution No. 396 , approving the award of the contract to the CLUE Group and appropriating $100,000 from the Village Area Redevelopment fund balance. 2. Professional Services Agreement between Agency and the CLUE Group for professional consultant services to complete the Retail Market Analysis and Business Development Strategy for the Village Redevelopment Area. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 HOUSING AND REDEVELOPMENT COMMISSION RESOLUTION NO. 396 A RESOLUTION OF THE HOUSING AND REDEVELOPMENT COMMISSION OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING THE REDEVELOPMENT AGENCY’S EXECUTIVE DIRECTOR TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT WITH THE COMMUNITY LAND USE + ECONOMICS GROUP TO COMPLETE A RETAIL MARKET ANALYSIS FOR THE DOWNTOWN VILLAGE REDEVELOPMENT PROJECT AREA, AND APPROPRIATING $100,000 TO FUND THE SUBJECT AGREEMENT AND RELATED COSTS. WHEREAS, the Carlsbad Redevelopment Agency has a need and a desire to complete a Retail Market Analysis and to develop a Business Development Plan and MarketingPromotional Strategy for the Village Redevelopment Area; and WHEREAS, the Carlsbad Redevelopment Agency has determined that it requires the professional services of a consultant with experience in completing the desired Retail Market Analysis and related stratepes for the Village Redevelopment Area; and WHEREAS, the Carlsbad Redevelopment Agency has completed a request for proposals and selection process to identify the consultant most qualified to complete the desired Retail Market Analysis and related strategies for the Village Redevelopment Area based on demonstrated experience; and WHEREAS, pursuant to Carlsbad Municipal Code Section 3.28.070(A) for the acquisition of professional services, the Carlsbad Redevelopment Agency has determined that the price for the requested services is fair and reasonable and offers the best value to the Agency; and . WHEREAS, the Village Area Redevelopment Fund has a sufficient fund balance to appropriate $100,000 for this contract. NOW, THEREFORE BE IT HEREBY RESOLVED as follows: 1. That the above recitations are true and correct. 2. That the Housing and Redevelopment Commission hereby authorizes the Carlsbad Redevelopment Agency’s Executive Director to execute a professional services agreement with the Community Land Use + Economics Group (CLUE Group) to provide the required consultant services to complete a Retail Market Analysis and subsequently prepare a Business Development Plan and Marketingh’romotional Strategy for the Village Redevelopment Area, in substantially the form presented in Exhibit 2 and as approved by the City Attorney, acting in hisher capacity as Counsel to the Commission. I111 I111 I111 Ill1 llli I111 I111 3 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 k+ 16 17 i8 19 20 21 22 23 24 25 26 27 28 e Commission Resolution No. 396 3. The Housing and Redevelopment Commission approves the appropriation of $100,000 from the Village Redevelopment Area fund balance. PASSED, APPROVED AND ADOPTED at a special meeting of the Housing and Redevelopment Commission of the City of Carlsbad, California, held on the 7Lday of June 7 2005, by the following vote, to wit: AYES: Commissioners Hall, Kulchin, Packard, Sigafoose NOES: Pbne ABSENT: Commissioner Lewis ABSTAIN: None CLAUDE A. LEWIS, Chairman MATT HALL, Vice-Chair RAY@ND R PAT~HETT, Secretary 2 AGREEMENT FOR RETAIL MARKET ANALYSIS AND DEVELOPMENT STRATEGY PROFESSIONAL CONSULTANT SERVICES (Community Land Use and Economics Group) THIS AGREEMENT is made and entered into as of the &* day of , 2005, by and between the CARLSBAD REDEVELOPMENT AGENCY, a body corporate and politic, ("Agency"), and COMMUNITY LAND USE AND ECONOMICS GROUP, LLC, a Virginia Corporation, ('Contractor"). *a/€ RECITALS A. Agency requires the professional services of a private consultant that is experienced in completing a retail market analysis and subsequently developing and assisting in the implementation of a development strategy for the Village Redevelopment Area. B. Contractor has the necessary experience in providing professional services and advice related to the desired retail analysis and related development strategy. C. Selection of Contractor is expected to achieve the desired results in an expedited fashion. D. Contractor has submitted a proposal to Agency and has affirmed its willingness and ability to perform such work. NOW, THEREFORE, in consideration of these recitals and the mutual covenants contained herein, Agency and Contractor agree as follows: 1. SCOPE OF WORK Agency retains Contractor to perform, and Contractor agrees to render, those services (the 'Services") that are defined in attached Exhibit "A", which is incorporated by this reference in accordance with this Agreement's terms and conditions. 2. STANDARD OF PERFORMANCE While performing the Services, Contractor will exercise the reasonable professional care and skill customarily exercised by reputable members of Contractor's profession practicing in the Metropolitan Southern California Area, and will use ,reasonable diligence and best judgment while exercising its professional skill and expertise. 3. TERM The term of this Agreement will be effective for a period of two (2) years from the date first above written. The Agency Executive Director may amend the Agreement to extend it for two (2) additional one (1) year periods or parts thereof in an amount not to exceed two thousand five hundred dollars ($2,500) per Agreement year. Extensions will be based upon a satisfactory review of Contractor's performance, Agency needs, and appropriation of funds by the Housing and Redevelopment Commission. The parties will prepare a written amendment indicating the effective date and length of the extended Agreement. Agency Attorney Approved Version #04.01.02 1 4. Time is of the essence for each and every provision of this Agreement. TIME IS OF THE ESSENCE 5. COMPENSATION The total fee payable for the Services to be performed during the initial Agreement term will be ninety-five thousand dollars ($95,000). No other compensation for the Services will be allowed except for items covered by subsequent amendments to this Agreement. The Agency reserves the right to withhold a ten percent (10%) retention until Agency has accepted the work and/or Services specified in Exhibit "A'. Incremental payments, if applicable, should be made as outlined in attached Exhibit "A'. 6. STATUS OF CONTRACTOR Contractor will perform the Services in Contractor's own way as an independent contractor and in pursuit of Contractor's independent calling, and not as an employee of the Agency. Contractor will be under control of Agency only as to the result to be accomplished, but will consult with Agency as necessary. The persons used by Contractor to provide services under this Agreement will not be considered employees of the Agency for any purposes. The payment made to Contractor pursuant to the Agreement will be the full and complete compensation to which Contractor is entitled. Agency will not make any federal or state tax withholdings on behalf of Contractor or its agents, employees or subcontractors. Agency will not be required to pay any workers' compensation insurance or unemployment contributions on behalf of Contractor or its employees or subcontractors. Contractor agrees to indemnify Agency within thirty (30) days for any tax, retirement contribution, social security, overtime payment, unemployment payment or workers' compensation payment which Agency may be required to make on behalf of Contractor or any agent, employee, or subcontractor of Contractor for work done under this Agreement. At the Agency's election, Agency may deduct the indemnification amount from any balance owing to Contractor. 7. SUBCONTRACTING Contractor will not subcontract any portion of the Services without prior written approval of Agency. If Contractor subcontracts any of the Services, Contractor will be fully responsible to Agency for the acts and omissions of Contractor's subcontractor and of the persons either directly or indirectly employed by the subcontractor, as Contractor is for the acts and omissions of persons directly employed by Contractor. Nothing contained in this Agreement will create any contractual relationship between any subcontractor of Contractor and Agency. Contractor will be responsible for payment of subcontractors. Contractor will bind every subcontractor and every subcontractor of a subcontractor by the terms of this Agreement applicable to Contractor's work unless specifically noted to the contrary in the subcontract and approved in writing by Agency. Agency Attorney Approved Version #04.01.02 2 8. OTHER CONTRACTORS The Agency reserves the right to employ other Contractors in connection with the Services. 9. INDEMNIFICATION Contractor agrees to indemnify and hold harmless the Agency and its officers, officials, employees and volunteers from and against all claims, damages, losses and expenses including attorneys fees arising out of the performance of the work described herein caused in whole or in part by any willful misconduct or negligent act or omission of the Contractor, any subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable. The parties expressly agree that any payment, attorney's fee, costs or expense Agency incurs or makes to or on behalf of an injured employee under the Agency's self- administered workers' compensation is included as a loss, expense or cost for the purposes of this section, and that this section will survive the expiration or early termination of this Agreement. 10. INSURANCE Contractor will obtain and maintain for the duration of the Agreement and any and all amendments, insurance against claims for injuries to persons or damage to property which may arise out of or in connection with performance of the services by Contractor or Contractor's agents, representatives, employees or subcontractors. The insurance will be obtained from an insurance carrier admitted and authorized to do business in the State of California. The insurance carrier is required to have a current Best's Key Rating of not less than "A-:VI. 10.1 Coverages and Limits. Contractor will maintain the types of coverages and minimum limits indicated below, unless Agency Attorney or Agency Manager approves a lower amount. These minimum amounts of coverage will not constitute any limitations or cap on Contractor's indemnification obligations under this Agreement. Agency, its officers, agents and employees make no representation that the limits of the insurance specified to be carried by Contractor pursuant to this Agreement are adequate to protect Contractor. If Contractor believes that any required insurance coverage is inadequate, Contractor will obtain such additional insurance coverage, as Contractor deems adequate, at Contractor's sole expense. 10.1.1 Commercial General Liabilitv Insurance. $1,000,000 combined single-limit per occurrence for bodily injury, personal injury and property damage. If the submitted policies contain aggregate limits, general aggregate limits will apply separately to the work under this Agreement or the general aggregate will be twice the required per occurrence limit. 10.1.2 Automobile Liability (if the use of an automobile is involved for Contractor's work for Agency). $1,000,000 combined single-limit per accident for bodily injury and property damage. Agency Attorney Approved Version #04.01.02 3 10.1.3 Workers' Compensation and Employer's Liabilitv. Workers' Compensation limits as required by the California Labor Code and Employer's Liability limits of $1,000,000 per accident for bodily injury. Workers' Compensation and Employer's Liability insurance will not be required if Contractor has no employees and provides, to Agency's satisfaction, a declaration stating this. 10.1.4 Professional Liabilitv. Errors and omissions liability appropriate to Contractor's profession with limits of not less than $1,000,000 per claim. Coverage must be maintained for a period of five years following the date of completion of the work. 10.2. Additional Provisions. Contractor will ensure that the policies of insurance required under this Agreement contain, or are endorsed to contain, the following provisions: 10.2.1 The Agency will be named as an additional insured on General Liability. 10.2.2 Contractor will obtain occurrence coverage, excluding Professional Liability, which will be written as claims-made coverage. 10.2.3 This insurance will be in force during the life of the Agreement and any extensions of it and will not be canceled without thirty (30) days prior written notice to Agency sent by certified mail pursuant to the Notice provisions of this Agreement. 10.3 Providing Certificates of Insurance and Endorsements. Prior to Agency's execution of this Agreement, Contractor will furnish certificates of insurance and endorsements to Agency. 10.4 Failure to Maintain Coverage. If Contractor fails to maintain any of these insurance coverages, then Agency will have the option to declare Contractor in breach, or may purchase replacement insurance or pay the premiums that are due on existing policies in order to maintain the required coverages. Contractor is responsible for any payments made by Agency to obtain or maintain insurance and Agency may collect these payments from Contractor or deduct the amount paid from any sums due Contractor under this Agreement. 10.5 Submission of Insurance Policies. Agency reserves the right to require, at anytime, complete and certified copies of any or all required insurance policies and endorsements. 11. BUSINESS LICENSE Contractor will obtain and maintain a City of Carlsbad Business License for the term of the Agreement, as may be amended from time-to-time. Agency Attorney Approved Version #04.01.02 4 12. ACCOUNTING RECORDS Contractor will maintain complete and accurate records with respect to costs incurred under this Agreement. All records will be clearly identifiable. Contractor will allow a representative of Agency during normal business hours to examine, audit, and make transcripts or copies of records and any other documents created pursuant to this Agreement. Contractor will allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement. 13. OWNERSHIP OF DOCUMENTS All work product produced by Contractor or its agents, employees, and subcontractors pursuant to this Agreement is the property of Agency. In the event this Agreement is terminated, all work product produced by Contractor or its agents, employees and subcontractors pursuant to this Agreement will be delivered at once to Agency. Contractor will have the right to make one (1) copy of the work product for Contractor’s records. 14. COPYRIGHTS Contractor agrees that all copyrights that arise from the services will be vested in Agency and Contractor relinquishes all claims to the copyrights in favor of Agency. 15. NOTICES The name of the persons who are authorized to give written notices or to receive written notice on behalf of Agency and on behalf of Contractor under this Agreement. For Agency: For Contractor: Name Debbie Fountain Name Kennedv Smith Title Director Title Principal Department Housing & Redevelopment Address P.O. Box 2345 Address 2965 Roosevelt Street #B Arlington, Virginia 22202-0345 Carlsbad, Ca. 92008 Phone No. (703) 51 9-1 802 Phone No. (760) 434-2815 Each party will notify the other immediately of any changes of address that would require any notice or delivery to be directed to another address. 16. CONFLICT OF INTEREST Agency will evaluate Contractor’s duties pursuant to this Agreement to determine whether disclosure under the Political Reform Act and Agency’s Conflict of Interest Code is required of Contractor or any of Contractor’s employees, agents, or subcontractors. Should it be determined that disclosure is required, Contractor or Contractor’s affected employees, agents, or subcontractors will complete and file with Agency Attorney Approved Version #04.01.02 5 the City Clerk those schedules specified by Agency and contained in the Statement of Economic Interests Form 700. Contractor, for Contractor and on behalf of Contractor’s agents, employees, subcontractors and consultants warrants that by execution of this Agreement, that they have no interest, present or contemplated, in the projects affected by this Agreement. Contractor further warrants that neither Contractor, nor Contractor’s agents, employees, subcontractors and consultants have any ancillary real property, business interests or income that will be affected by this Agreement or, alternatively, that Contractor will file with the Agency an affidavit disclosing this interest. 17. GENERAL COMPLIANCE WITH LAWS Contractor will keep fully informed of federal, state and local laws and ordinances and regulations which in any manner affect those employed by Contractor, or in any way affect the performance of the Services by Contractor. Contractor will at all times observe and comply with these laws, ordinances, and regulations and will be responsible for the compliance of Contractor’s services with all applicable laws, ordinances and regulations. Contractor will be aware of the requirements of the Immigration Reform and Control Act of 1986 and will comply with those requirements, including, but not limited to, verifying the eligibility for employment of all agents, employees, subcontractors and consultants that the services required by this Agreement. 18. DISCRIMINATION AND HARASSMENT PROHIBITED Contractor will comply with all applicable local, state and federal laws and regulations prohibiting discrimination and harassment. 19. DISPUTE RESOLUTION If a dispute should arise regarding the performance of the Services the following procedure will be used to resolve any questions of fact or interpretation not otherwise settled by agreement between the parties. Representatives of Contractor or Agency will reduce such questions, and their respective views, to writing. A copy of such documented dispute will be forwarded to both parties involved along with recommended methods of resolution, which would be of benefit to both parties. The representative receiving the letter will reply to the letter along with a recommended method of resolution within ten (1 0) business days. If the resolution thus obtained is unsatisfactory to the aggrieved party, a letter outlining the disputes will be forwarded to the Executive Director of the Agency. The Executive Director will consider the facts and solutions recommended by each party and may then opt to direct a solution to the problem. In such cases, the action of the Executive Director will be binding upon the parties involved, although nothing in this procedure will prohibit the parties from seeking remedies available to them at law. Agency Attorney Approved Version #04.01.02 6 20. TERMINATION In the event of the Contractor's failure to prosecute, deliver, or perform the Services, Agency may terminate this Agreement for nonperformance by notifying Contractor by certified mail of the termination. If Agency decides to abandon or indefinitely postpone the work or services contemplated by this Agreement, Agency may terminate this Agreement upon written notice to Contractor. Upon notification of termination, Contractor has five (5) business days to deliver any documents owned by Agency and all work in progress to Agency address contained in this Agreement. Agency will make a determination of fact based upon the work product delivered to Agency and of the percentage of work that Contractor has performed which is usable and of worth to Agency in having the Agreement completed. Based upon that finding Agency will determine the final payment of the Agreement. Either party upon tendering thirty (30) days written notice to the other party may terminate this Agreement. In this event and upon request of Agency, Contractor will assemble the work product and put it in order for proper filing and closing and deliver it to Agency. Contractor will be paid for work performed to the termination date; however, the total will not exceed the lump sum fee payable under this Agreement. Agency will make the final determination as to the portions of tasks completed and the compensation to be made. 21. COVENANTS AGAINST CONTINGENT FEES Contractor warrants that Contractor has not employed or retained any company or person, other than a bona fide employee working for Contractor, to solicit or secure this Agreement, and that Contractor has not paid or agreed to pay any company or person, other than a bona fide employee, any fee, commission, percentage, brokerage fee, gift, or any other consideration contingent upon, or resulting from, the award or making of this Agreement. For breach or violation of this warranty, Agency will have the right to annul this Agreement without liability, or, in its discretion, to deduct from the Agreement price or consideration, or otherwise recover, the full amount of the fee, commission, percentage, brokerage fees, gift, or contingent fee. 22. CLAIMS AND LAWSUITS By signing this Agreement, Contractor agrees that any Agreement claim submitted to Agency must be asserted as part of the Agreement process as set forth in this Agreement and not in anticipation of litigation or in conjunction with litigation. Contractor acknowledges that if a false claim is submitted to Agency, it may be considered fraud and Contractor may be subject to criminal prosecution. Contractor acknowledges that California Government Code sections 12650 et sea., the False Claims Act applies to this Agreement and, provides for civil penalties where a person knowingly submits a false claim to a public entity. These provisions include false claims made with deliberate ignorance of the false information or in reckless disregard of the truth or falsity of information. If Agency seeks to recover penalties pursuant to the False Claims Act, it is entitled to recover its litigation costs, including attorney's fees. Contractor acknowledges that the filing of a false claim may subject Contractor to an administrative debarment proceeding as the result of which Contractor may be prevented to act as a Contractor on any public work or improvement for a period of up to five (5) years. Contractor Agency Attorney Approved Version #04.01.02 7 acknowledges debarment by another jurisdiction is grounds for City to terminate this Agreement. 23. JURISDICTIONS AND VENUE Any action at law or in equity brought by either of the parties for the purpose of enforcing a right or rights provided for by this Agreement will be tried in a court of competent jurisdiction in the County of San Diego, State of California, and the parties waive all provisions of law providing for a change of venue in these proceedings to any other county. 24. SUCCESSORS AND ASSIGNS It is mutually understood and agreed that this Agreement will be binding upon City and Contractor and their respective successors. Neither this Agreement or any part of it nor any monies due or to become due under it may be assigned by Contractor without the prior consent of City, which shall not be unreasonably withheld. 25. ENTIRE AGREEMENT This Agreement, together with any other written document referred to or contemplated by it, along with the purchase order for this Agreement and its provisions, embody the entire Agreement and understanding between the parties relating to the subject matter of it. In case of conflict, the terms of the Agreement supersede the purchase order. Neither this Agreement nor any of its provisions may be amended, modified, waived or discharged except in a writing signed by both parties. AUTHORITY executing this Agreement and the instruments referenced in it on behalf MeT- of Contractor each represent and warrant that they have the legal power, right and actual authority to bind Contractor to the terms and conditions of this Anreement. (e-mail address) City Attorney Approved Version W.01.02 MY Commission Explm 8 March 31,2009 If required by Agency, proper notarial acknowledgment of execution by contractor must be attached. If a Corporation, Agreement must be signed by one corporate officer from each of the following two groups. *Group A. Chairman , President, or Vice-president **Group B. Secretary, Assistant Secretary, CFO or Assistant Treasurer Otherwise, the corporation must attach a resolution certified by the secretary or assistant secretary under corporate seal empowering the officer(s) signing to bind the corporation. APPROVED AS TO FORM: RON&B,R. BALL, Agency Attorney Agency Attorney 6 */680<* Agency Attorney Approved Version #04.01.02 9 EXHIBIT “A” SCOPE OF SERVICES Itemized List of what Contractor will do for Agency and at what price is attached. Agency Attorney Approved Version #04.01.02 10 March 11, 2005 Debbie Fountain, Director Housing and Redevelopment Agency City of Carlsbad 2965 Roosevelt Street, Suite 6 Carlsbad, California 92008 Via email: DFou n @rim ca rls bad. ca . us Dear Debbie: I'm very glad to hear that things are progressing there in downtown Carlsbad and that you are interested in a retail market analysis and development strategy, and I am pleased to submit the following proposal. Backaround For centuries, downtowns functioned as the commercial, government, social, and religious hubs of their communities. But historic and older commercial districts have gone through a series of profound transformations over the past 50 years. Of all these changes, none have been as profound as the changes in main street retailing. With the advent of regional shopping malls and discount superstores, retailing - almost always the bedrock of a traditional main street district's economic foundation - has slowly eroded. Recent developments - including online shopping, changes in the grocery industry, and new programs intended to attract and retain young talent in towns and cities - offer both new opportunities and tough new challenges to main streets in the decade ahead. For historic and older downtowns to reestablish themselves as vibrant, competitive commercial districts, it is critical that their revitalization and management be guided The Community Land Use * Economics Group. LLC PG Box 2345 Arlington. Virginia 222020345 703.519.1802 P 202.318.4605 F ~v~riv.iiueyi UL@~UITI by dynamic, market-based strategies. Retail market analysis is therefore the starting point for downtown development and a critical benchmarking tool for measuring revitalization progress. - The Community Land Use and Economics Group, LLC, helps communities revitalize downtowns, cultivate independent businesses, manage growth, and protect historic resources. Launched in 2004, the CLUE Group combines the expertise of two experienced professionals - Kennedy Smith and Leslie Tucker - to provide a range of economic development and land use services to developers, community leaders, state and federal officials, and others involved in shaping towns and cities. Kennedy Smith is the former director of the National Main Street Center and one of the nation's foremost experts on commercial district revitalization and independent main street businesses. She has worked with towns and cities in all 50 states and in a number of other nations. She created the retail market analysis methodology now used in many downtown revitalization programs throughout the United States. She is the author or co-author of numerous articles and publications, including Revitalizing Downtown, the forthcoming Revitalizing Neighborhood Main Streets training manual, and the forthcoming Main Street Retail Report, the first national survey of sales performance in downtown businesses. She has conducted over 100 training workshops on retail market analysis and Main Street business development and scores of additional workshops on other aspects of economic restructuring, from augmenting local retail sales with internet-based commerce to using tax credit equity investments in financing the rehabilitation of historic commercial buildings. She has been featured in news media ranging from the New York Times, Business Week, Forbes, Governing and Red Herring to "Donahue," "CBS Sunday Morning," and Public Radio International's "Marketplace." 9 Leslie Tucker is the former assistant director for public policy for the National Trust for Historic Preservation, where she managed a national clearinghouse of "best practices" in state and local historic preservation programs and policies from across the country. She also provided advocacy and educational support to state and local preservation organizations and the general public on a variety of issues impacting preservation. She is the author of numerous articles on historic preservation, smart growth and community revitalization, including: "Big-Box Sprawl (And How to Control It)," Municipal Lawyer; "Low-Cost Local Incentives for Historic Preservation," Texas Town & City; "Main Streets and Transportation Policies," The Alliance Review; "Retail Caps: Smart Growth Tools for Main Street," Main Street News; and "Temporary Development Controls,'' Main Street News. The CLUE Group will add a third principal in mid-2005. The CLUE Group is a limited liability company registered in the Commonwealth of Virginia. - The Community Land Use and Economics Group is committed to downtown development planning that engages a broad range of public- and private-sector entities, supports established and emerging industries and knowledge clusters, reinforces overall community economic development goals, cultivates locally owned businesses, offers opportunities for economic sustainability, and positions the downtown as the center of civic life. Our retail development and market analysis work is guided by the following principles: We explore and pursue innovative economic development solutions to commercial district revitalization challenges. Historic and older town centers operate within vastly different economic contexts than they did several decades ago, and reestablishing market viability and cultural vibrance requires strategies that create and combine new uses and that use multiple marketing channels in innovative ways. We use market analysis tools appropriate for traditional downtowns. Retail market analysis for older and historic downtowns differs significantly from retail market analysis for shopping centers and shopping malls. Shopping malls are almost exclusively retail in nature, and they provide a relatively limited range of products and services to consumers with relatively similar demographic characteristics. Downtowns, however, have multiple uses - retail, professional offices, housing, government, entertainment, and many more - and serve a broad range of consumers with many different demographic characteristics. For these reasons, retail market analysis for older and historic downtowns must examine multiple factors and multiple options simultaneously. We involve as many members of the community in the process as possible, and disseminate information widely. The more people who share the information, the greater the level of collaboration on an overall economic development strategy will be - and the greater the level of support for the process and outcomes. We look for opportunities to strengthen and cultivate locally owned businesses. We believe that locally owned retail businesses provide the critical market distinctiveness that helps position a downtown as a unique destination and investment venue. We also look for pockets of growth that provide signals about changes occurring in the regional economy and for opportunities these pockets of growth might provide for bringing small-scale industries and support services into the downtown area. We use market analyses not only to craft solid business development strategies but also to create vibrant arts, culture and entertainment programs. Downtowns are the most public places in a community - the symbolic heart, where the community comes together to celebrate, relax, and experience a sense of belonging and civic identity. We believe that a vibrant arts, culture, and entertainment program is vital to cultivating civic identity, improving quality of life, and creating an enticing environment attractive to new investment. We put information to work right away. We make reports easy to understand - brief and digestible - with information broken down into small, usable chunks. Even small bits of information can help improve promotional events, help a business do more effective merchandising, or even identify a design problem. We stress practical, achievable implementation strategies. A report is of little use if the guidance it provides is not easy to implement. We make the retail market analysis process the springboard for monitoring a district’s economic condition on an ongoing basis. We try to make the process fun. Qw3mmml We propose to conduct a retail market analysis for downtown Carlsbad, then to use this information gathered and analyzed to craft a comprehensive downtown business development plan and marketing/promotional strategy for the downtown area. I have structured our proposal in four components: The first component - the basic retail market analysis itself - is the core activity, establishing the base for all derivative strategies. The second and third components - a business development plan and a marketing/ promotional strategy - are applications of the information and strategies resulting from the market analysis. The final component is a tool for providing ongoing guidance and training to key participants in Carlsbad’s downtown development initiative, helping ensure that the market analysis and derivative plans are put into active use. 1. Retail market analvsis. The retail market analysis will involve five major steps: . . Analyzing the data gathered Evaluating the district's current economic condition Conducting a sales void analysis Conducting consumer surveys Identifying, testing and finalizing 2-3 market based strategies that will guide downtown Carlsbad's retail revitalization We envision the following sequence of events for the retail market analysis: Proiect D lanning: We will gather and review relevant documents and talk with key local participants in order to thoroughly understand existing conditions, become familiar with work completed to date, review project expectations, and develop/confirm project time lines. Sales void analysis: Using Census of Population information and other data sources, we will calculate the buying power of Carlsbad area residents (the amount of money Carlsbad area residents are likely to spend on 15-20 major retail categories). We will then compare this information to current retail sales information (using the Census of Retail Trade and California sales tax reports), identifying retail categories in which Carlsbad, and downtown Carlsbad in particular, is likely losing sales to other shopping areas (including the internet) and in which it appears to be exceeding likely local market demand (meaning that it is attracting sales from tourists and other people who live outside the Carlsbad area). The analysis of these retail sales voids and surpluses will help us calculate the quantity of new retail sales the downtown can likely support over the next five to ten years (both by helping existing businesses increase sales and also by developing new businesses) and estimate the amount of new retail space these increased sales can likely support. Consumer su rveys: We will conduct, tabulate and analyze two consumer surveys: o A downtown consumer intercept survey, which will help us develop a solid profile of the district's current visitors (tourists, workers, residents and others). We will observe pedestrian traffic patterns and, based on these patterns, will select 3-5 locations in which to conduct up to 400 surveys over the course of one week. The survey will provide valuable information on the purposes for which people currently visit downtown Carlsbad, on their shopping habits and preferences, on their perceptions of the district, and on their demographic characteristics. This survey will be important in identifying the district's current economic condition, in evaluating opportunities for downtown businesses to better serve existing district workers and visitors, and, by comparison with information about residents of the Carlsbad region, in understanding the types of people who are not currently regular visitors to downtown Carlsbad. It will also help us test consumer reaction to possible new businesses and business concepts. In addition, we will use the information we learn about the people who work in and visit downtown Carlsbad to estimate buying power for these groups. Because conducting consumer intercept surveys is time-intensive and can therefore be costly, we propose two options for conducting the consumer intercept surveys: We can conduct and tabulate the surveys for $12,000, plus expenses, or We can train a group of local volunteers (perhaps from the Carlsbad Village Business Association) to conduct the surveys for $1,600, plus expenses. . o A web-based community survey, which will give us a profile of community residents, their shopping habits, and their perceptions of downtown Carlsbad. We will select a random sample of Carlsbad residents and, by postcard, ask them to complete the online survey. We will offer an option of a telephone survey for any residents selected for the survey who do not have access to the internet. 9 Analvsis of the district's current eco nomic Derformance: Using business inventories, the consumer intercept survey, and other data sources, we will analyze downtown Carlsbad's current economic performance, including: b identifying existing "vertical" and "horizontal" retail clusters (e.g., clusters of businesses serving demographically similar customers, and clusters of businesses providing a concentration of related goods and services), b estimating the total retail sales that the district's businesses are most likely currently capturing, b developing a demographic profile of the district's major visitor groups, t identifying strengths and weaknesses in how the district is perceived, and t identifying the district‘s major trade areas for a variety of products and services. . Data synthesis and Droaram recommendations: With all data gathered and analyzed, we will synthesize the components together into an overall profile of downtown Carlsbad’s economic performance and its best options for growth over the next 5-10 years. We will articulate 2-4 market-based strategies that we believe will help the revitalization initiative’s participants meet these economic goals. Based on our experience working with hundreds of historic downtowns, we will then recommend a set of specific actions to help guide the City, downtown development organization, and other local program participants in strengthening downtown Carlsbad. Market IkS Market-based strategies cross-cui the four tategories’ of the Main Street matrix, and activities developed in each of these four categories reinforce each respective market-based strategy. . Final report a nd Dresentation: We will prepare a final report (30-50 pages, plus appendices) outlining our findings and recommendations, and will present these findings and recommendations in a live presentation to program participants (and to the general public, if desired). We will provide two printed and bound copies of the report as well as an electronic copy, in Adobe PDF format, for the City to distribute as it wishes. 2. Business development Dlan: Guiding the development of specific types of businesses and influencing the specific places within a district in which they locate are two of the most difficult aspects of commercial district revitalization. To help Carlsbad meet these challenges, we will prepare a retail development plan for downtown Carlsbad that provides detailed information on the profiles of specific types of businesses that we think would likely succeed (including consideration of specialty niches such as entertainment, restaurants, arts, and office services) and a detailed tenant mix plan and "cluster" strategy for physically locating businesses within the district over time. The plan will also include consideration of office and small-scale industrial uses (artisans, architectural crafts, and software-related industries, for example). Month 1 2-3 3-5 5-6 6-7 7-8 3. Activity Component 1: Retail market analysis Initial project planning Sales void analysis Consumer su rveys Analysis of the district's current economic performance Data synthesis and program recommendations Final report Marketina and promotional strateav: Dynamic business districts are animated and alive with activities connected by a cohesive, comprehensive arts, culture and entertainment marketing and promotion strategy. Building on information from the retail market analysis, we will define a core retail marketing concept for the district that aggressively reinforces the district's "brand" and that actively engages a range of community organizations. We will also outline an aggressive 24-month calendar of events (general image-building promotion, special events, and retail promotional events), with marketing targets and timelines, targeting the primary market groups identified as most important to downtown Carlsbad's growth over the next 5-10 years. 9-10 10-12 4. Onaoina auidance and training: To help the City, the Carlsbad Village Business Association, and other local participants implement the business development plan, marketing/promotionaI strategy and other activities, we propose to conduct one or two training workshops annually, a quarterly conference call with key participants, and an annual progress evaluation. Component 2: Business development plan Component 3: Marketing/promotionaI strategy Timeline We anticipate the following project timeline: Component 4: Annual training programs + evaluation, quarterly I 13-48 I udates Budaet Our budget for this project is as follows: Activity Business development plan ComDonent 1: Retail market analvsis Hours Fee Expenses Total 80 $16,000 1,3506 17,350 Total: I $44,200 I 6,500 I $49,700 I Total: Option 2: Local volunteers conduct consumer intercept surveys $16,000 1,350 $17,350 Estimated at one flight, two hotel nights, two car rental days, two per diem days, and incidental costs * Estimated at one flight, six hotel nights, six car rental days, six per diem days, and survey printing + supplies. Estimated at one flight, two hotel nights, two car rental days, two per diem days, and incidental costs Estimated at one flight, two hotel nights, two car rental days, two per diem days, and incidental costs ’ Estimated at one flight, two hotel nights, two car rental days, two per diem days, and incidental costs Estimated at one flight, two hotel nights, two car rental days, two per diem days, and incidental costs 1 4 6 Activity Hours Fee Marketing/promotional strategy 80 $16,000 Total: $16,000 Expenses Total $16,000 $16,000 Component 4: Onaoina trainina ant Activity 0 ne training works hop Quarterly conference calls Annual evaluation I consider this proposal a starting point for discussion about designing services that best meet Carlsbad's needs. Please feel free to call or email me to discuss our proposal in greater detail. auidance (De r vearl Hours Fee Expenses Total 10 $2,000 1,3507 $ 3,350 8 1,600 1,600 20 4,000 1,350' 5,350 With warm regards, Total: $ 7,600 Kennedy Smith, Principal 2,700 $10,300 Attachments: Kennedy Smith bio General terms and conditions Hourly rate/Kennedy Smith $200 Airfare (per flight) 750 Hotel (per night) 150 Car rental (per day) 60 50 - Per diem (per day) ' Estimated at one flight, two hotel nights, two car rental days, two per diem days, and Incidental costs * Estimated at one flight, two hotel nights, two car rental days, two per diem days, and incidental costs . ..