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
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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.
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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.
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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.
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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.
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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.
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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.
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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
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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.
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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
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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
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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
. ..