HomeMy WebLinkAboutCWS 2.a. Discuss Retail Strategies Opportunity
EXECUTIVE SUMMARY
City Council Special Work Session: February 20, 2018
AGENDA ITEM: Discuss Retail Strategies opportunity AGENDA SECTION:
Discussion
PREPARED BY: Logan Martin, City Administrator AGENDA NO. 2.a.
ATTACHMENTS: Partnership proposal from Retail
Strategies; Draft Contract APPROVED BY: LJM
RECOMMENDED ACTION: Discuss opportunity to partner with Retail Strategies for
consulting services and provide direction to staff.
BACKGROUND
The City Council received a presentation from a retail-attraction consulting firm known as Retail Strategies
at its January 16 work session. In light of that presentation, it would be prudent for the Council to discuss
its interest in working with this firm and to direct staff on appropriate next steps.
DISCUSSION
Retail Strategies is a private consulting firm specializing in retail recruitment and business attraction for
municipalities. The firm uses data and analytics generated by GIS tools and other consumer profiling
methods in order to generate an analysis of gaps and opportunities in a certain market area. A full
description of their proposal for Rosemount is attached. As Council may recall, the City engaged a
competing firm to conduct similar work starting in April 2014 to January 2016, when the City terminated
the contract.
After completing a data analysis of Rosemount’s market, the firm would begin targeting retailers, brokers,
and developers on behalf of the City. As many of these conversations and decision making processes end
up being lengthy, Retail Strategies proposes a three-year contract with the City. The fee for services is
$45,000 annually in years 1 and 2, $40,000 in year 3. The draft contract (attached) has been reviewed by
City Attorney Tietjen, and her comments have been provided to Retail Strategies for modification.
This item was preliminarily discussed during the preparation of the 2018 Budget, and as such funds were
allocated in 2018 for either this consulting agreement or the hiring of a full-time employee in the
Community Development Department to engage in similar work. While that employee may not have the
same market connectivity that Retail Strategies purports, an additional staff member would allow the
Community Development staff to complete other business recruitment, marketing, public relations and
outreach efforts that the Council has expressed interest in.
CONCLUSION
Staff recommends that the City Council discuss this opportunity and provide direction. If so desired as a
result of the work session discussion, this item could be added to the regular agenda on February 20 for
further action.
Retail Strategies Proposal Strictly Private and Confidential 1
Rosemount, MN
Retail Development Services
October 2017
Strictly Private & Confidential
Retail Strategies Proposal Strictly Private and Confidential 2
Technical Proposal
DATA & ANALYTICS l REAL ESTATE ANALYSIS l COMMUNITY INPUT l RETAIL STRATEGY
Identify market retail trade area using political boundaries, drive times and radii and custom boundary
geographies
Perform market and retail GAP analysis for trade area (i.e. leakage and surplus)
Conduct retail peer market analysis
Competition analysis identified target zones trade area(s)
Tapestry lifestyles – psychographic profile of trade area / market segmentation analysis
Aerial imagery of trade area(s)
Retail competitor mapping/analysis
Identification of at minimum 30 retail prospects to be targeted for recruitment in the first year of our partnership
Monthly updates provided on retail industry trends
Custom on-demand demographic research – historical, current, and projected demographics – to include market
trade areas by radius/drive time, and custom trade area
Analysis of future retail space requirements in relation to the retail market analysis, the market’s growth potential
and trends in the retail industry
Retail Real Estate Analysis performed by Licensed Retail Real Estate Professionals with 10+ years of collective
experience
Identify/Evaluate/Catalog priority commercial properties for development, re-development and higher and best
use opportunities
Identification of priority business categories for recruitment and/or local expansion
Perform competitive analysis of existing shopping centers and retail corridors
Active outreach to local brokers and land owners
Target List of Retailers and Restaurants (minimum of 30)
Customized Marketing Guide (four pages)
Target Zones for Development, Redevelopment, and Leasing
Focus Properties
Presented by the Team via Conference Call and/or Skype
RETAIL RECRUITMENT l IMPLEMENTATION l NATIONAL REPRESENTATION
Pro-active retail recruitment for targeted zones
Will contact a minimum of 30 retailers, restaurants, brokers and/or developers each year
Updates on new activity will be provided to Client’s designated primary point of contact via Basecamp,
telephone, or email on a monthly and/or as needed basis
ICSC conference representation- updates provided according to the yearly conference schedule
One market visit per calendar year included in agreement, any travel outside of the agreement shall be approved
and paid for by the contracting entity
On Demand Reporting – by partnering with Retail Strategies we become your research arm providing data to
our contracting entity as it is requested.
Retail trends, mergers, and acquisitions
Web Platform developed
Retail Strategies Proposal Strictly Private and Confidential 3
Reporting, Invoicing, and Fee Schedule
The agreement is year to year. However, we
structure agreements with an option to renew for a
total of thirty-six months (3 years).
Project Fees
The total fee for completion of work is $130,000
payable in three installments over the 36-month
period:
$45,000 for the first year of service.
$45,000 upon contract renewal date for Year
2. An invoice will be sent 60 days prior to
renewal date.
$40,000 upon contract renewal date for Year
3. An invoice will be sent 60 days prior to
renewal date.
Project fees are due within 30 days of receipt of the
invoice. Should the Client request a special
assignment, additional work, and/or additional
travel needs not specifically referenced in the
contract, we will prepare written authorization to be
signed by the Client in advance of commencing any
additional work. Pricing valid for 90 days.
Client Responsibilities
Rosemount, MN will designate a project liaison
who will serve as Retail Strategies’ primary contact
during the partnership.
Rosemount, MN will provide information relevant to
the project such as prior retail studies, current
traffic count data, surveys, maps, aerials,
infrastructure plans, and any other plans that may
influence the development of the Retail
Recruitment Plan.
Rosemount, MN will provide city or organization
logo and contact information as it should appear
on the marketing material.
“It’s not about what we are going to
give you, it’s about what we are going
to build together. “
-Robert Jolly, CEO
Why invest in Retail Strategies?
Quality
Service
Value
Progressive communities across the county
have decided to be proactive in their approach
to retail and retail recruitment. To effectively
identify and attract the desired retail concepts
to your community, you need more than data
reports, a list of prospects, and prepared
marketing packages. Our partnerships involve
hands-on, person-to-person contact, with our
clients, retail real estate decision makers,
property owners, brokers, and a variety of
other contacts. Let us connect the dots in this
complex industry for you to create the
meaningful results for your community.
[BABC 3-7-16]
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PROFESSIONAL SERVICES AGREEMENT TO PROVIDE
CONSULTING SERVICES
This Professional Services Agreement to Provide Consulting Services (this “Agreement”)
sets forth the mutual understanding of The City of Rosemount, MN (the “Client”) and Retail
Strategies, LLC, an Alabama limited liability company (the “Consultant”) on this the _____ day
of February, 2018 (the “Execution Date”), for the provision of professional consulting services
as more fully set forth below.
R E C I T A L S:
The Consultant possesses a high degree of professional skill and experience and is a
unique provider of professional consulting services in retail recruitment.
The Client desires to hire the Consultant to provide professional consulting services
because of its professional skill and experience.
NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and
agreements set forth in this Agreement, the Client and the Consultant, intending to be legally
bound, do hereby agree as follows:
1. CONSULTING SERVICES. The Consultant agrees to provide the following
professional consulting services to the Client (the “Services”):
A. Research. The Consultant will identify the Client’s retail trade area using a blend of
demographics, political boundaries, drive times and/or custom boundaries. The
Consultant will perform market and retail analysis based on current industry standards at
the time such reports are run. The Consultant will map retail locations and analyze
opportunities given local and macro retail trends.
B. In-Market Real Estate Analysis. The Consultant will analyze existing shopping centers
and retail corridors and actively reach out to local brokers and real estate owners. The
Consultant will identify, evaluate and catalogue priority commercial properties for
development or redevelopment based on their highest-and-best-use. The Consultant will
identify priority business categories to expand locally and to recruit to the area.
C. Retail Recruitment. The Consultant will proactively recruit businesses for targeted
zones through the contact of a minimum of 30 retailers, restaurants, brokers or
developers. The Consultant will regularly update the Client Representative on retail
recruitment efforts via email, telephone and the Consultant’s client web portal known as
“Basecamp.” One market visit per calendar year is included in this agreement, additional
travel outside of this agreement and requested by the Client shall be approved and paid
for by the Client. The Consultant will represent the Client at International Council of
Shopping Center conferences and provide updates according to the yearly conference
schedule.
D. Web Platform. Consultant will design and develop a web based platform to house and
maximize exposure of information and demographics most relevant to retail decision
making in the Client community (the “Web Platform”).
E. Updates. The Consultant will provide the Client Representative with updates within three
business days of receipt of a request from the Client Representative (as defined in Section
4 below).
2. TERM. The Consultant’s engagement and provision of Services will commence
upon the Execution Date as set forth above. The Consultant’s engagement and this Agreement
will terminate automatically on the third anniversary of the Effective Date (the “Term”) unless
earlier terminated as provided in Section 6 below. At the end of the Term, the Client, acting by
and through the Client Representative, may extend the Term at its option for successive one year
periods on such terms and conditions as the Client Representative, acting for and on behalf of the
Client, and the Consultant may agree upon in writing.
3. CONSULTING FEE.
A. Consulting Fee. In consideration for providing the Services, the Client agrees to pay the
Consultant a consulting fee (the “Consulting Fee”) in an amount equal to $130,000.00.
The Consulting Fee will be paid in installments of immediately available funds as
follows:
Contract Period Payment Date Payment Amount
Year One
Upon execution of this
agreement
$45,000.00
Year Two
On or before the 1st
anniversary of the Effective
Date
$45,000.00
Year Three
On or before the 2nd
anniversary of the Effective
Date
$40,000.00
B. Payment Default. If the Client fails to pay any portion of the Consulting Fee on the
requisite payment date, the Consultant will immediately cease all Services, including but
not limited to: (1) negotiation of incentive agreements; (2) all recruiting and marketing
efforts; (3) representation of the Client at trade shows; (4) booking meetings for the
Client with prospective retailers; and (5) including the Client in marketing materials.
C. Web Platform Service Fees. Consultant will update demographic information annually
during the Term of this Agreement. Modifications, corrections, and/or additions to the
Client’s Web Platform within the first thirty (30) days of delivery to Client are included
within the Consulting Fee as set forth above. Should the Client request Web Platform
changes, modifications, or corrections after the designated thirty (30) day Consultant will
bill an hourly rate not to exceed One Hundred and no Dollars ($100) per hour for time
spent (“Web Platform Service Fee”). Request for Web Platform service must be made to
the Consultant in writing. Consultant will use good faith effort to complete such requests
within ten (10) days of receiving written request from client. Upon completion of
preforming Web Platform service the Consultant shall submit invoices to the Client
supported by information in such detail as may be required by the Client and shall be
sufficient to substantiate that the Consultant has performed the services.
4. CLIENT INFORMATION AND ACCESS.
A. To the extent permitted by law, the Client will provide the Consultant with access to
relevant personnel, facilities, records, reports and other information (including any
information specified in the Consultant’s proposal to the Client) accessible by the Client
that the Consultant may reasonably request from time-to-time during the Term. The
Client acknowledges and agrees that the Consultant’s scheduled delivery of the Services
is dependent upon the timely access to such personnel, facilities, records, reports and
other requested information.
B. To facilitate such access and Consultant’s delivery of the Services, the Client designates
the City Administrator (the “Client Representative”), currently Logan Martin, The Client
Representative will serve as the primary liaison between the Consultant and the Client.
The Client Representative will have responsibility for regular communications between
the Client and the Consultant, including providing updates in a timely manner through
Basecamp. The Client Representative’s communications to the Consultant will include
information regarding retail growth and development, such as actual and prospective
business openings and closings, changes in economic drivers (e.g., significant increases
or decreases in workforce of major employers, school enrollments, housing or healthcare
services) and changes in the ownership of targeted real estate (e.g., transfers of real estate
or changes in the finances of ownership). The Client Representative will also be
responsible for disseminating updates relative to consultants activities related to scope of
work to members of local stakeholder groups of the Client (e.g. City Council, Economic
Development Boards, and Chamber of Commerce etc.).
Initials of Client Representative: _____
C. The Client hereby authorizes the Client Representative (i) to act on behalf of the Client in
the day-to-day administration and operation of this Agreement and the arrangements it
contemplates and (ii) to execute and deliver, on behalf of the Client, such notices,
approvals, consents, instruments, amendments or other documents as may be necessary or
desirable to facilitate or assist the Consultant with the provision of the Services.
5. INTELLECTUAL PROPERTY. As part of the Services, the Consultant will prepare
periodic and final reports including demographic and other research reports that will become the
property of the Client upon delivery from the Consultant. Any other reports, memoranda,
electronic mail, facsimile transmissions or other written documents prepared or used by the
Consultants in connection with the Services will remain the property of the Consultant. With the
Consultant’s prior permission, the Client may use other information provided by the Consultant,
such as specifics related to retailers, developers, site information or other “confidential
information” for internal purposes while taking reasonable steps to so limit the use of such
materials and maintain its confidentiality.
6. TERMINATION.
A. By the Client At-Will. The Client may terminate this Agreement at any time for any or
no reason upon delivery of 30 days’ prior written notice to the Consultant. Any portion
of the Consulting Fee paid prior to such termination of this Agreement is earned when
paid and nonrefundable.
B. By the Client Upon the Consultant’s Default. The Client may notify the Consultant
within 90 days of the day that the Client knows or should have known that the Consultant
breached this Agreement. The Consultant will have 30 days following receipt of such
notice to cure any alleged breach. If the Consultant fails to cure any alleged breach
within that 30-day period, then the Client may terminate this Agreement. Within 30 days
of such termination of this Agreement, the Consultant will refund a pro rata portion of the
installment of the Consulting Fee previously paid for the contract period during which
such termination occurs based upon the number of days remaining in such contract
period.
C. By the Consultant At-Will. The Consultant may terminate this Agreement at any time
for any or no reason upon delivery of 30 days’ prior written notice to the Client. Within
30 days of such termination of this Agreement, the Consultant will refund a pro rata
portion of the installment of the Consulting Fee previously paid for the period during
which such termination occurs based upon the number of days remaining in such period.
D. By the Consultant Upon the Client’s Default. The Consultant may notify the Client
within 90 days of the day that the Consultant knows or should have known that the Client
breached this Agreement. The Client will have 30 days following receipt of such notice
to cure any alleged breach. If the Client fails to cure any alleged breach within that 30-
day period, then the Consultant may terminate this Agreement. Any portion of the
Consulting Fee paid prior to such termination of this Agreement is earned when paid and
nonrefundable.
7. NOTICES. Any notice or communication in connection with this Agreement will be in
writing and either delivered personally, sent by certified or registered mail, postage prepaid,
delivered by a recognized overnight courier service, or transmitted via facsimile or other
electronic transmission, addressed as follows:
Client: Logan Martin
Address: 2875 145th St. West Rosemount, MN 55068
Email: logan.martin@ci.rosemount.mn.us
Fax: 651-423-4424
Attention: Logan Martin
Consultant: Retail Strategies, LLC
120 18th Street South, Suite 201
Birmingham, AL 35233
Email: Ashton@retailstrategies.com
Fax: (205) 313-3677
Attention: ASHTON L. ARRINGTON
or to such other address as may be furnished in writing by either party in the preceding manner.
Notice shall be deemed to have been properly given for all purposes: (i) if sent by a nationally
recognized overnight carrier for next business day delivery, on the first business day following
deposit of such notice with such carrier, (ii) if personally delivered, on the actual date of
delivery, (iii) if sent by certified U.S. Mail, return receipt requested postage prepaid, on the third
business day following the date of mailing, or (iv) if sent by facsimile or email of a PDF
document (with confirmation of transmission), then on the actual date of delivery if sent prior to
5 p.m. Central Time, and on the next business day if sent after such time.
8. INDEPENDENT CONTRACTOR. The Consultant, in its capacity as a professional
consultant to the Client, is and will be at all times an independent contractor. The Consultant
does not have the express, implied or apparent authority either (A) to act as the Client’s agent or
legal representative or (B) to legally bind the Client, its officers, agents or employees.
9. STANDARD TERMS.
A. Affiliated Services: The Client acknowledges that certain affiliates of the Consultant
provide real estate brokerage and management services for which they are paid
brokerage, development, leasing, management and similar fees. In connection with the
Services and with the prior written permission of the Client, such affiliates may be
engaged to provide such services in consideration for the payment of such fees.
B. Applicable Laws: The Consultant will abide by all laws, rules and regulations
applicable to the provision of the Services.
C. Insurance: The Consultant will carry all employee insurance necessary to comply with
applicable state and federal laws.
D. Third Party Beneficiaries: This Agreement is for the sole benefit of the parties to this
Agreement and their permitted successors and assigns. Nothing in this Agreement,
whether express or implied, is intended to or will confer upon any other person or entity
any legal or equitable right, benefit or remedy of any nature whatsoever under or by
reason of this Agreement.
E. Publicity: The Client agrees that the Consultant may, from time-to-time, use the Client’s
name, logo and other identifying information on the Consultant’s website and in
marketing and sales materials.
F. Entire Agreement: This Agreement, together with any exhibits or amendments hereto,
constitutes the entire agreement of the parties, as a complete and final integration thereof
with respect to its subject matter. Any prior written or oral understandings and
agreements between the parties are merged into this Agreement, which alone fully and
completely expresses their understanding. No representation, warranty, or covenant
made by any party which is not contained in this Agreement or expressly referred to
herein has been relied on by any party in entering into this Agreement.
G. Further Assurances: Each party hereby agrees to perform any further acts and to
execute and deliver any documents which may be reasonably necessary to carry out the
provisions of this Agreement.
H. Force Majeure: Neither party to this Agreement will hold the other party responsible
for damages or delay in performance caused by acts of God, strikes, lockouts or other
circumstances beyond the reasonable control of the other or the other party’s employees,
agents or contractors.
I. Limitation on Liability; Sole Remedy: Each party’s liability to the other party arising
out of or related to this Agreement or the Services will not exceed the amount of the
Consulting Fee. The Client’s sole remedy in the event of any alleged breach of this
Agreement by the Consultant will be the notice, cure and refund provisions of Section
6(B) of this Agreement.
J. Amendment in Writing: This Agreement may not be amended, modified, altered,
changed, terminated, or waived in any respect whatsoever, except by a further agreement
in writing, properly executed by a duly authorized officer of the Consultant and the Client
Representative, acting for and on behalf of the Client.
K. Binding Effect: This Agreement will bind the parties and their respective successors and
assigns. If any provision in this Agreement will be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions will not in any way be
affected or impaired thereby.
L. Captions: The captions of this Agreement are for convenience and reference only, are
not a part of this Agreement and in no way define, describe, extend, or limit the scope or
intent of this Agreement.
M. Construction: This Agreement will be construed in its entirety according to its plain
meaning and will not be construed against the party who provided or drafted it.
N. Prohibition on Assignment: No party to this Agreement may assign its interests or
obligations hereunder without the written consent of the other party obtained in advance
of any such assignment. No such assignment will in any manner whatsoever relieve any
party from its obligations and duties hereunder and such assigning party will in all
respects remain liable hereunder irrespective of such assignment.
O. Waiver: Non-enforcement of any provision of this Agreement by either party will not
constitute a waiver of that provision, nor will it affect the enforceability of that provision
or of the remaining terms and conditions of this Agreement.
P. Survival: Section 5 and Section 9(H) will survive termination of this Agreement.
Q. Counterparts; Electronic Transmission: This Agreement may be executed in
counterparts, each of which will be deemed to be an original, and such counterparts will,
together, constitute and be one and the same instrument. A signed copy of this Agreement
delivered by telecopy, electronic transmission or other similar means will be deemed to
have the same legal effect as delivery of an original signed copy of this Agreement.
[SIGNATURE PAGES FOLLOW]
1/3930930.7
IN WITNESS WHEREOF, the Client and the Consultant have caused this Agreement to
be executed by their duly authorized officers to be effective as of the Effective Date.
CLIENT:
City of Rosemount, MN
By: ______________________________
Name: Logan Martin
Title: City Administrator
Date:
CONSULTANT:
RETAIL STRATEGIES, LLC
By: ______________________________
Name:
Title:
Date
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