HomeMy WebLinkAbout6.b. Contract between City of Rosemount and Buxton „pp RosEmouNT
EXECUTIVE SUMMARY
PORT AUTHORITY
Port Authority Meeting Date: April 15, 2014
AGENDA ITEM: Contract between City of Rosemount and AGENDA SECTION:
Buxton Old Business
PREPARED BY: Kim Lindquist, Deputy Director AGENDA NO.
ATTACHMENTS: Proposed Contract APPROVED BY:
RECOMMENDED ACTION: Motion to Approve Use of Port Authority Funds for 1/3 the
cost of the Buxton Contract for Year One of the Contract
ISSUE
The Port Authority and City Council heard a presentation from Buxton on March 4,2014,relating to
economic development marketing. Since that time,Buxton has proposed a contract for Council
consideration, a copy of which is attached. The approval of the contract is on the Council agenda at their
meeting on April 15`h.
Included in the proposal's objectives are the following: recruit new retailers and restaurants;retain existing
retailers and restaurants; and understand current retail and restaurant economic conditions. To
accomplish these items, Buxton states they will research our community; define and evaluate the trade
area;profile the trade area's residential customers; match retailers and restaurants to the market potential;
and then create marketing packages for up to 20 targeted retailers in the first year and then 10 additional
retailers in each the second and third years. The fee for services is an annual fee of$50,000 for a three
year term and includes access to retail match lists and marketing packages within 60 business days of
execution of the contract.There is a $10,000 add-on to obtain VISA information about visitors to the
community. In discussions with Brittany Roark, the Buxton Representative, she indicated that this is
something the community can add on later if desired. Given the lower amount of visitors to the
community; tourists,workers, and shoppers,it may be more beneficial to wait and see what kind of
information we can obtain regarding current residents.
As mentioned in discussions with the Port Authority, the City is very interested in ramping up our
marketing campaign to increase economic development in the community. I spoke with Karen Pollard of
Rochester NH regarding their experience with Buxton. She is the Community Development Director for
the community. She indicated the community had just renewed their contract for another three years
because they felt it was very helpful in attracting retail to the community. They have experienced success in
attracting businesses, specifically restaurants,which is one of the goals when starting the contract. She
indicated they the work closely with local brokers and provide information to them,which assists in
attracting specific types of tenants to existing retail centers, or to fill new centers. She said the leads were
not as important for their community as the data as many of the national and regional companies in the
area franchise their local outlets. She indicated that there has to be a commitment to follow up on leads
and strongly suggested attending nation and or regional ISCS and trade shows to go out and meet brokers
and provide the local information. She said her time spent is perhaps 4-8 hours a week on their economic
development efforts relating to Buxton,but ramps up significantly about 3 weeks before and after the
shows. During that time they are putting together tailored information for each of their appointments and
then after the shows doing follow up.
In discussions with North St. Paul, they are just starting the process and like the information they have
received so far. The Administrator indicated he heard Robbinsdale is also using Buxton and may not have
been as happy with some of the information they've received. Staff will follow up with Robbinsdale prior
to Tuesday's meeting. I have also received a few more references from Ms Roark late Thursday and will try
to make contact prior to Tuesday's meeting.
In discussions with North St. Paul,which has just started the Buxton program, the City Administrator
indicated they had an opt-out clause in their contract. The language is noted below:
Opt-out Option: Client may select an opt-out option by providing Buxton with written notice
within thirty (30) days prior or post the first anniversary of this Agreement. If Client selects the
opt-out option,no Year 2 or 3 fees will be due and payable.
Staff has indicated to our Buxton Representative that Rosemount would also like the opt-out option in our
contract. The Port Authority and Council have indicated that economic development is a top priority in
the community. If the services provided by Buxton are consistent with community expectations,it is
anticipated that the City would maintain the contract for three years. The City acknowledges that
economic development takes time, effort, and commitment that means only one year of intensive
marketing will not lead to as much success as a continuous 3-year program. However, the opt-out option
gives the Council a higher level of security if the services do not live up to expectations.
The proposal is coming before the Port Authority for discussion.At this time staff is recommending that
1/3 of the contract amount for year one come from the Port Authority reserves.The remaining 2/3 would
come from the Council contingency and utility funds. If the Port Authority supports moving forward,
staff is recommending the Port Authority authorize use of the reserve funds for 1/3 of the project cost for
year one. Future funding for the remaining two years of the contract need to be identified and will be part
of the upcoming budget process.
RECOMMENDATION
Approve use of Port Authority reserves to fund 1/3 of the cost of the Buxton contract for the first year.
Further discussion will be necessary to ascertain where future funding for years two and three can be
obtained.
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Retail Recruitment and Retention
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Prepared by: Brittany Roark
0 Expiration Date: April 25, 2014
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ADVANTAGE
_,...OUR VALUE PROPOSITION
Since our founding in 1994, Buxton has been a leading force in retail site and development.We are
recognized for creating solutions that provide results. Buxton began as a service to help retailers make
informed site selection decisions by understanding their customers and precisely determining their
markets and soon realized that the company's expertise in retail site and market analysis could also be
leveraged to benefit communities desiring retail expansion.
More than simply providing data, Buxton supplies custom marketing materials and strategies targeting
the unique site requirements of retailers,developers and commercial real estate brokers. Buxton clients
achieve outstanding success using our tools for retail identification, selection and recruitment. And our
clients benefit from our unique understanding of retail site selection from the retailer's point of view.
• Grow Your Community. Create new, permanent jobs that will satisfy your citizen's desire to
shop at home; retain dollars currently spent outside of your community and maximize revenue
growth to fund city services.
• Leverage Buxton's Retail Industry Expertise. Establish credibility with decision makers by
providing factual evidence to support your site and gain a competitive position by leveraging our
experience:
o 2000+ retail, restaurant, and healthcare clients
o 650+ public sector clients nationwide
o 35+ million square feet of retail space
o 500+cumulative years of retail management and economic development experience
• Access Your Buxton Solution with Ease. Utilize your best-in-class retail recruitment solution via
SCOUT, with the touch of a button from any mobile device. Get the insights and answers to
your retail recruitment and site analysis questions and have the big picture in the palm of your
hand.
• Develop a Long-Term Partnership. You will receive personal guidance and ongoing insight into
key industry topics.
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SECTION 1: SCOPE OF SERVICES
Buxton is pleased to present this proposal to Rosemount, MN. The purpose of this proposal is to outline
and review your community development objectives and how Buxton's solutions will enhance your
ability to effectively meet those objectives.
Rosemount, MN's Objectives
1. Recruit new retailers and restaurants
2. Retain existing retailers and restaurant
3. Understand current retail and restaurant economic condition
Retail Recruitment and Retention Solution: Your Community Profile
Our solution is a total marketing strategy that enables community leaders to understand the consumer
profile of their residents and to identify specific retailers and restaurants who seek a market with
household purchasing habits just like yours. This solution provides you with the ability to actively
pursue identified retailers, making a compelling case for their expansion to Rosemount, MN utilizing
custom marketing packages that Buxton will create for you. You will have access to the same analytical
information and insights retailers depend on today to make site selection decisions providing you with
instant credibility and the ability to differentiate your community.
Step 1- Research Your Community
Buxton uses over 250 consumer and business databases that are updated regularly and compare your
potential sites to the universe of all competing sites operating in the U.S. We define your current retail
situation and those in any neighboring communities that impact your retail environment.
Step 2—Define and Evaluate Your Trade Area
Customers shop by convenience, measuring distance based on time, not mileage.We will conduct a
custom drive-time analysis to determine your trade area using our proprietary methodology and
knowledge of individual retail client's actual trade areas. Your drive-time trade area will be provided to
you as a map that accurately depicts your consumer shopping patterns.
Step 3—Profile Your Trade Area's Residential Customers
Your community profile will analyze all the households in your drive-time trade area. Based on more
than 7,500 categories of lifestyles, purchase behaviors and media reading and viewing habits
(psychographics),the households in your trade area are assessed to gain an understanding of the types
of retailers that would be attracted to your site.
Step 4—We Match Retailers and Restaurants to Market Potential
Buxton will match the consumer profile of your community's trade area against the customer profiles of
5,000+ retailers in our proprietary database. We will identify the similarity between the two profiles
analyzed using Buxton's proprietary retail matching algorithm to determine if your site presents an
attractive opportunity for each retailer. We then qualify the list of matched results to verify that a
retailer is currently operating or expanding,that they operate in similar sites and that your site affords
adequate buffer from competition and cannibalization to be realistically considered.
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Step 5—We Create Marketing Packages
Buxton will assemble individualized marketing packages for up to twenty(20)targeted retailers and will
notify each retailer's key real estate decision maker, by letter that they have been qualified by Buxton as
a potential viable fit for your site and should expect to be contacted by a representative of the city.
Your marketing packages will be delivered to you in SCOUT and include:
1. Map of the retail site and trade area
2. Map of retailer's potential customers
3. Retailer match report that compares the site's trade area characteristics and consumer profile
with the retailer's sites in similar trade areas
Solution Deliverables:
• SCOUT Touch Access
• Drive Time Trade Area Maps
• Retail Site Assessment
• Retail Match List(specific retailers that match your trade area's consumer profile)
• Retailer Specific Marketing Packages (for up to twenty(20) retailers)
• Mobile tablet device at completion pre-loaded with all findings
Access and Use Your Retail Recruitment Solution via SCOUT
Buxton's Retail Recruitment solution will allow you to actively recruit retailers to your community and
support existing businesses with the push of a button in SCOUT Touch, providing you with crucial
information about your community,your trade areas,your residents, and much more. SCOUT is a web-
based platform which is accessible on any Windows or iOS enabled device with an internet connection
and designed to give decision-makers in your community access to the data and solutions that will assist
them in making better business decisions. The Retail Recruitment solution includes one (1) mobile
tablet device which will be provided at completion and will be pre-loaded with all key findings. This
mobile tablet device, possession of Rosemount, MN, is enabled with four(4)SCOUT Users with the
ability to run demographic and trade area profile reports, and view maps, and other data elements.
Identifying and quantifying the key variables which impact your community,you will acquire insights
from these findings that will provide you with a strong foundation from which to understand retail
recruitment and business retention efforts. In Buxton's SCOUT Touch you will be able to:
• Identify Retail Matches
• Run Variable Reports
• View City Limit Maps
• Run Healthcare Reports 4 �'
• Run Demographic& Consumer ,
Propensity Reports ® ''
• See Aerial View El in IS
• View Physician Intelligence
• Run Comparable Reports ANSWERS AT YOUR FINGERTIPS. ANYTIME. ANYWHERE.
• Run Retail Leakage/Surplus Reports
Next Page: Fees and Timing
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Bu' oI1
SECTION 2: FEES & TIMING
ANNUAL FEE SOLUTION TIMELINE
• Your SCOUT access will be enabled within ten (10) business days of
the execution of this agreement
$50,000
(three(3)year term) • Rosemount, MN will have access to retail match lists and marketing
packages within sixty(60) business days of execution.
Rosemount, MN will be invoiced as follows:
• $50,000 Year 1 Fee(50%of total solution fee invoiced upon execution,S0%invoiced upon solution delivery)
• $50,000 Year 2 Fee(Invoiced 1st Anniversary of this agreement)
• $50,000 Year 3 Fee(Invoiced 2"d Anniversary of this agreement)
All service fees associated with this agreement are due net ten (10) days from the date of the invoice.
Buxton may include Rosemount, MN on its client list in presentations and public relations efforts. When
doing so, Buxton will not reveal information that is confidential and proprietary to Rosemount, MN.
Buxton Rosemount, MN
Signature Signature
Printed Name Printed Name
Title Title
Date Date
Please provide us with a primary point of
contact for invoice receipt.
Name
Phone
Email
Preferred Method of Receipt(Email or U.S.Mail)
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APPENDIX A: ADDITIONAL RECOMMENDED
SOLUTIONS
SOLUTION FEE
Visitor Insights Solution vv/VISA Expenditure Data
Buxton will leverage your visitor data by combining it with our household level
visitor information in order to determine:
• Who your best visitors are
• Where more of your best visitors are found
All matched records will be analyzed to define visitor segments. A comparable 10'000
panel of non-visitors will also be pulled from the same geographical areas to define
non-visitor segments. Buxton will conduct a comparative analysis between visitor
and non-visitor segments based on thousands of variables and will evaluate
penetration rates. We then create indexes of visitor penetration rates by segment
and contrast these with those of non-visitors and other visitor segments to create a
comprehensive profile view of your best and worst visitor households by segment.
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