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Home My WebLink About3.B. Buxton Proposal4 ROSEMOUNT CITY COUNCIL City Council Work Session: March 11, 2014 EXECUTIVE SUMMARY AGENDA ITEM: Buxton Proposal AGENDA SECTION: Updates PREPARED BY: Dwight Johnson AGENDA NO. 2. f. ATTACHMENTS: Initial Buxton proposal letter APPROVED BY: intj RECOMMENDED ACTION: Review and Discuss BACKGROUND The Port Authority and Council heard a presentation from Buxton Company on March 46' relating to economic development marketing. A copy of their initial proposal is attached. DISCUSSION Staff is interested in any feedback on the proposal or any additional questions that should be directed to them before deciding whether to proceed with further discussion of a contract with them. Buxton Buxton Overview Buxton is the industry leader in customer analytics and site selection; with more than 500 combined years of development experience. We work with more than 2500 national and regional retail clients including Bass Pro Shops, Red Mango, McCormick & Schmick's, Lowe's, Escada, Mimi's Cafe, Island's Burgers, California Pizza Kitchen, Ruby Tuesday, PetCo, Tommy Bahama, Hugo Boss, Morton's Steak House, The Container Store, In & Out Burger, Dave and Busters, New Balance, Applebee's, Subway, Dollar Tree, Ben & Jerry's, Z Gallerie, Marriott, Pink Berry and thousands more both unique and national concepts. We also work in the healthcare industry for organizations such as Florida Hospitals, Texas Health Resources, Concentra, Sisters of Mercy and over 350 others to better understand patient profiles. We work directly with municipalities, assisting communities, local EDCs, Chambers of Commerce, and regional partnerships in understanding what specific retailers /restaurants are suitable for attraction to specified development sites. Buxton has worked with more than 650 communities large and small. In fact, by utilizing the Buxton solutions, we've been able to assist our community clients to land more than 35 million square feet of retail around the United States. Using industry standards, this represents over $6 billion in increased annual retail sales. Buxton owns the most sophisticated and granular household data available. This enables us to provide our clients with rolling, real time snapshots of every household in any size trade area along with more than 75,000 lifestyle characteristics. Our exclusive partnership with Visa for Visitor Insights paints a picture of who shops and dines in your community beyond the residential and workforce population. Buxton provides our public sector clients access to intelligence that retailers, hospitals and hotels utilize to make multi - million dollar decisions! The application of this data is virtually endless, including, but not limited to: Comparison of New Residents versus Tenured Residents Transit Oriented Planning Understanding Neighborhood Serving Retail Needs /Opportunities Understanding Neighborhood Serving Healthcare Needs /Opportunities Providing Business Retention Tools Marketing Tools to Promote City/County/State Initiatives such as green technologies Visitor Profiling and Direct Marketing Tools Public Library Location Recommendations and Collection Mix Emergency Services Utility Comprehension Hotel Recruitment Economic Impact and Industrial Recruitment Community /D Methodology The methodology used to develop your Community /D is the same methodology that Buxton uses with over 2500 retail clients to select locations for stores and restaurants. Much of the methodology is proprietary and has been developed utilizing technologically advanced systems. This day -by -day working relationship that Buxton has with major retail clients gives you the assurance that your specific marketing materials will address the needs of location decision makers. With Community /D you can effectively sell your community /county because you are providing the details required to make decisions. We use customer spending habits to determine the market viability of an area. Utilizing this information allows a more proactive and selective process to take place. It provides a focused list of target retailers and gives the retail concepts the assurance they need to make a speed to market decision about your community /county. We Know How America Lives Accurately defining and knowing who your customers are, relative to other consumers in the market, applies to virtually any concept imaginable. For local businesses, customer knowledge creates revenues, facilitates growth, generates profits and increases shareholder value. For public sector entities, understanding the lifestyle and purchasing characteristics of their residents, workforce population, and visitors enables civic leaders to focus clearly on the specific economic development strategies. To achieve this level of knowledge, the actual customer household must be the foundation for all research efforts. Buxton has pioneered the use of household level data for research purposes. Millions of customer transactions are analyzed to determine purchasing habits and lifestyles, a process now known as psychographics. Once the lifestyle of a given customer is known, they and others like them can literally be found anywhere in America. Buxton's comprehensive data set allows for a fact -based approach to retail identification and includes: • 250 national and proprietary databases including: o 130 million household records with up to 7 individuals within each household o More than 75,000 lifestyle and consumer habits for each type of customer o An exclusive partnership with Visa for Visitor Insights The source of our data includes but is not limited to the following sources: • Credit Cards • Reward Cards • Subscriptions • Mail Order • Warranty Cards • Motor Vehicle Information • Checks • Retail Loyalty Cards • Traffic Counts • Acxiom • ESRI • InfoUSA • Experian Replace Guesswork with Certainty While the science of retail site selection has changed, many community's have not. Some are still using tools that put them at a disadvantage in today's brutally competitive retail marketplace. Long gone are the days of waiting for a retailer to notice you. For the Retailer; Buying property and building a store are simply too expensive to leave to chance. With the new generation of tools for customer analysis, retailers can have confidence that the decisions they're making are the correct ones. The Buxton study helps take the guess work out of the equation and helps you differentiate yourself from the cities across the U.S. that you compete with for retail. Additionally, knowing and understanding the trade area's unique customer base and visitor population enables your existing businesses to succeed. A Customized Solution Your community is different from any other, with unique features that impact the local retail market. As a result, Community /D is not another "off- the - shelf" report, but a customized solution that takes into account the special attributes of your community — attributes that could be very attractive to retailers. Buxton's CommunitylD offers a proven strategy and plan of action for marketing your community to retailers and developers. It not only helps you achieve your short-term goals, but can ensure the economic strength of your retail sector over the long term. • Identify sites in your community that offer retail potential • Profile the shopping and dining habits of your resident, visitor, & workday populations • Target retailers uniquely suited for your community and complement the existing retail • Market your community using the information retailers need • Establish credibility with retail decision makers • Prevent retail leakage and lost tax revenue • Satisfy your citizen's desire to shop in their own city and increase quality of life • Become a proactive partner to local business owners by providing valuable data about the current market • Quantify by US market where your visitors are coming from • Focus marketing efforts on the most valuable visitors Buxton's Solution Our solution is a total marketing strategy that enables community leaders to immediately implement a retail development program. It provides the same analytical information retailers depend on today to make site selection decisions so that you will have a compelling case as to why the city can support new store and restaurant locations and expansions. Retail Recruitment identifies specific retailers who seek a market with household purchasing habits just like yours, and we provide custom marketing packages targeted to that specific retailer. Additionally, Visa Visitor Insights allow communities to capitalize on their visitors and the impact they have on the local economy. Retail Recruitment goes beyond a plan. It allows your community to be proactive rather than reactive to the recruitment process. In addition, this solution provides a number of answers for existing business retention. Including but not limited to: • Merchandising decisions • Marketing Strategies • Media Preferences Deliverables • Drive Time Trade Area Map • Retail Site Assessment (retail potential of up to three selected sites) • Residential, Visitor, & Overall Profile • Retail Match List (specific retailers that match the households in the trade area) • Retailer Specific Marketing Packages (up to 40 over three years) • SCOUT Touch Access • iPad at completion pre - loaded with findings Benefits • Maximize revenue growth to fund city services • Retain dollars that are being spent outside the community • Rifle approach in marketing to visitors • Create new, permanent jobs ■ Satisfy citizens' desire to shop at home • Partner with the leader in site selection analysis to the retail industry • Establish credibility with decision makers by providing factual evidence to support your location ■ Use competitive analysis to close the deal • A dynamic, consumer - oriented retail sector is a component of a healthy economy ■ Existing business growth and retention Investment At Buxton, we believe that economic development is not a short -term project, but a long term investment. Our 20 years of retail and community experience has shown us that the most successful communities have a focus on recruitment and retention on an ongoing basis. Our three year engagement builds a strong foundation for continuing growth and development. Below we have outlined the investment for both our Retail Recruitment Solution as well as our Retail Recruitment Solution w/ VISA Visitor Insights. SOLUTION #1: RETAIL RECRUITMENT SOLUTION Year 1: $50,000 *50% due upon contract /50% due upon execution (60 days from contract) • Full retail recruitment analysis defining profile of resident and workforce population • Retail match list • Up to 20 retailer specific marketing packages • Initial engagement communication to each of the selected retailers • Contact information for each of the 20 selected retailers • 12 Month access to cloud based SCOUT Touch Platform • iPad touch pre - loaded with all findings, property of the city • Account Support Team Year 2 and 3: $50,000 /Yr • Refresh to the recruitment analysis of resident & workforce profile • Retail match list • Additional 10 pursuit packages each year • Initial engagement communication to each retailer selected • Contact information for each retailer selected • 24 Month access to cloud based SCOUT Touch Platform • Account Support Team SOLUTION #2: RETAIL RECRUITMENT SOLUTION W/ VISA VISITOR INSIGHTS INCLUDED Year 1: $60,000 *50% due upon contract /50% due upon execution (60 days from contract) • Full retail recruitment analysis defining profile of resident, workforce and visitor population • Retail match list • Up to 20 retailer specific marketing packages • Initial engagement communication to each of the selected retailers • Contact information for each of the 20 selected retailers • 12 Month access to cloud based SCOUT Touch Platform • iPad touch pre - loaded with all findings, property of the city • Account Support Team Year 2 and 3: $50,000/Yr • Refresh to the recruitment analysis of resident, workforce & visitor profile • Retail match list • Additional 10 pursuit packages each year • Initial engagement communication to each retailer selected • Contact information for each retailer selected • 24 Month access to cloud based SCOUT Touch Platform • Account Support Team