View Report - Durango Business Improvement District
Transcription
View Report - Durango Business Improvement District
Downtown Strategic Action Framework Durango BID Board Meeting August 20, 2014 PURPOSE OF THIS PROJECT • Tasks: • Review previous downtown data & analyses • Drill down on specific topics • Pull forward any info relevant to current issues • Tailor findings to local needs & emerging opportunities • Develop prioritized recommendations to: • Inform BID strategic and long-term initiatives • Align with BID capacity & resources • Identify potential new funding sources Purpose of this Project • Recommendations address: • Constituent Services • Engage new and existing constituents • Provide “value added” services • Operations / analytics • Gather customer feedback • Program missing amenities & activities • Connect interested investors with potential opportunities Purpose of this Project • Recommendations address (con’t): • Marketing • Better understand downtown visitors (locals vs. non-locals) • Target marketing $ and messages • Business retention & recruiting • Help existing businesses survive, thrive, and expand • Attract new/complimentary downtown retailers to address leakage • Connect developers with opportunity sites with willing sellers Purpose of this Project • Recommendations address (con’t): • Long-term Strategic Planning • Long-term initiatives to ensure the ongoing vitality of downtown Bottom line: • Create a “strategic action framework” to allow the BID Board, Staff, and Community Partners to be: • Proactive (versus reactive) • Strategic (versus tactical) • Catalysts of emerging opportunities Purpose of this Project Purpose of this Project • Sources consulted: • • • • • Downtown Durango Vision Plan (Civitas et al, 2006) Downtown Market Assessment & Management Plan (RRC, 2008) BID District Constituent Research (Atkinson Consulting, 2010) Retail Recruitment & Retention Presentation (Buxton, 2013) Numerous conversations with leadership of: • BID, including Board’s strategic planning discussion • La Plata County Economic Development Alliance • Others • Personal observations • 10+ years as a planning consultant working in large and small communities throughout the country • Nearly 2 dozen “downtown revitalization” studies • A relatively new resident of the region (so I still have “fresh eyes”) Purpose of this Project ISSUES & OPPORTUNITIES • Issue: Direct engagement with BID constituents is currently done ad hoc. • Opportunity: BID should engage new and existing constituents in the near-term (and thereafter annually) • Raise awareness of existing BID services • Ask what new “value added” BID services would benefit them • Discuss priority initiatives being undertaken as part of this Strategic Action Framework • This customer feedback can help improve BID service offerings (and create political support for next vote on renewal of mill levy assessment) Constituent Services • Issue: Very little downtown-specific data is collected or analyzed. • Opportunity: BID should take the lead curating downtown-specific data and utilizing it for strategic purposes: • Survey locals and tourists about “downtown satisfaction” in order to… • Minimize leakage and program missing amenities & activities • Track publicly-available data (e.g. vacancy rates, average lease rates) in order to… • Quickly assist businesses searching for downtown commercial space Operations / Analytics • Work with owners and brokers, to highlight vacant properties in order to…shorten vacancy “downtime” • Consider temporary tenants and/or pop-up uses • BID may need to help match up temp tenants and empty space • Develop & market inventory of underutilized opportunity sites in order to…connect real estate developers & investors with willing sellers • Create a operations “dashboard” • 3-4 mission critical performance measures (“vital signs”) • Allows for proactive response to emerging challenges and opportunities • Regularly report to BID constituents and partners (at least 1x/year) Operations / Analytics • Caveat: • I’m not specialist in analyzing consumer expenditure data! • I have some “issues” with Buxton data: • It’s a very dense dataset that I found difficult to query as a novice / occasional user. • I question the validity of a 15-minute drive-time analysis for this region. • I don’t think downtown retail demand is equivalent to conventional retail demand • Destination vs. convenience vs. transactional Summary of Buxton Data Summary of Buxton Data CUSTOMER CUSTOMER DEMOGRAPHICS AGE: 35-50 INCOME: $75 – 100K MARRIED DEMOGRAPHICS AGE: 35-50 INCOME: $75 – 100K MARRIED DEMOGRAPHICS ONLY TELL A PIECE OF THE STORY − NOT ACTIONABLE − LIMITED APPLICATION Slide courtesy of Buxton Analytics CUSTOMER TOM KING CUSTOMER 1308 BRYN MAWR CT BEN SHAW CONSUMER TRAITS SHOPS AT COSTCO DRIVES VOLVO EATS AT P.F. CHANG’S THREE CHILDREN PREFERS MOVIE THEATERS 1010 IMPERIAL WAY CONSUMER TRAITS SHOPS AT SAM’S DRIVES GMC EATS AT CHILI’S ONE CHILD NETFLIX SUBSCRIBER GET BEYOND DEMOGRAPHICS − TALK ABOUT CUSTOMERS - UNDERSTAND CONSUMER BEHAVIOR - HOUSEHOLD LEVEL Slide courtesy of Buxton Analytics Summary of Buxton Data Resident HHs: Downtown’s Dominant Segments Summary of Buxton Data 9% 6% 3% 0% 0% Summary of Buxton Data A01 A02 A03 A01 A04 A02 A05 A03 A06 A04 B07 A05 B08 A06 B09 B07 B10 B08 C11 B09 C12 B10 C13 C11 C14 C12 D15 C13 D16 C14 D17 D15 D18 D16 E19 D17 E20 D18 E21 E19 F22 E20 F23 E21 G24 F22 G25 F23 H26 G24 H27 G25 H28 H26 H29 H27 I30 H28 I31 H29 I32 I30 I33 I31 J34 I32 J35 I33 J36 J34 K37 J35 K38 J36 K39 K37 K40 K38 L41 K39 L42 K40 L43 L41 M44 L42 M45 L43 N46 M44 N47 M45 N48 N46 N49 N47 O50 N48 O51 N49 O52 O50 O53 O51 O54 O52 O55 O53 P56 O54 P57 O55 P58 P56 P59 P57 P60 P58 P61 P59 Q62 P60 Q63 P61 Q64 Q62 Q65 Q63 R66 Q64 R67 Q65 S68 R66 S69 R67 S70 S68 S71 S69 S70 S71 12% 12% Percentage Resident HHs: The Region’s Dominant Segments 21% 21% ZipThree Code Capture 1010 Springs 600 Main St Blvd 18% 18% 15% 15% 9% 6% 3% Segments Segments Dominant Segments Segments Dominant All Other Other Segments All Segments • Characteristics of “Bohemian Groove” Segment (K40) Lifestyle Characteristics Index Single HOH without kids 330 Telemarketing and Direct mail responsive 178 Reads New York Times daily 146 Hobbies include painting, drawing, sculpting 129 Exercise twice per week 124 Over 75,000 individual categories available Summary of Buxton Data Common Dominant Segments to Inform Strategic Decisions about Marketing Expenditures and Retailer Retention/Recruitment Segment Zip Code Capture Resident - VISA Visitor - VISA Overall - VISA Second Homeowners A01: American Royalty A02: Platinum Prosperity A03: Kids and Cabernet A05: Couples with Clout B07: Generational Soup B08: Babies and Bliss B09: Family Fun-Tastic C11: Aging of Aquarius C13: Silver Sophisticates ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● D15: Sports Utility Families E19: Full Pockets, Empty Nests E21: Unspoiled Splendor H27: Birkenstocks and Beemers H29: Destination Recreation I30: Stockcars and State Parks J35: Rural Escape K37: Wired for Success K40: Bohemian Groove N47: Countrified Pragmatics O53: Colleges and Cafes Q62: Reaping Rewards ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● Summary of Buxton Data Summary of Buxton Data Summary of Buxton Data Summary of Buxton Data Summary of Buxton Data Summary of Buxton Data • Issue: • Due to low vacancies, need to be very strategic in recruiting and retaining retailers that fill existing gaps and serve both locals and non-locals • Downtown Durango’s economic success hinges on maintaining “authenticity” and avoiding a “tourist trap” perception by locals and visitors. • Opportunity: Based on prelim assessment of Buxton data, BID should focus in the short-term on recruitment & retention of retailers in these categories: • General Merchandise Stores • Electronics and Appliance Stores • Food & Beverage Stores • In the long-term: BID should implement recruitment & retention activities based on the result of the pending Buxton retail matching analysis and recruitment package. Retention & Recruiting Visitor CPR (Consumer Propensity Summary of Buxton Data • Top Census Bureau Statistical Areas (CBSA) by Percent of Overall Spending CBSA Name Percent of Overall Spend Durango, CO Micro 46.19% Denver-Aurora-Broomfield, CO Metro 3.28% Albuquerque, NM Metro 2.81% Farmington, NM Metro 2.32% Phoenix-Mesa-Glendale, AZ Metro 2.16% Dallas-Fort Worth-Arlington, TX Metro 1.45% Houston-Sugar Land-Baytown, TX Metro 1.37% Summary of Buxton Data Marketing Marketing • Issue: There is currently no comprehensive marketing strategy for downtown. • Opportunity: Based on prelim assessment of Buxton data, BID should focus in the short-term on marketing initiatives outlined below: • Messaging: • Survey downtown visitors on what attracted them to downtown Durango • Cull from the Visitor CPR for visitor values • Media / modes: • Advertise in media outlets with similar audiences as dominant visitor market segments • “Ambassador” training for local hotel and restaurant staff on downtown amenities • Out-of-region marketing: • In Durango-La Plata County Airport (car rental desks?) • Airports with direct flights to Durango-La Plata County Airport (at the gates where flights to Durango depart from) • In the long-term: BID should hire a contractor to complete a downtown-focused marketing plan based on detailed assessment of Buxton dataset. Marketing • Conduct feasibility study for Camino del Rio & North Main Urban Renewal Authority • At some point the downtown core/CBD will be at capacity • Occupancy and lease rates are are already high • Few remaining opportunity sites • Camino/North Main could be “Downtown II” • Help prevent “pricing out” local-serving uses downtown • Accommodate new: • Residential (critical for long-term success) • Large-footprint office (keep the next Mercury downtown) • Better connect major assets: Main Ave. and ART • But…significant public improvements needed to catalyze private-sector investment Long-Term Strategic Planning • URA could provide revenue for: • Capital projects: streetscape improvements, connections from downtown to trail/river, upgraded infrastructure) • Gap financing for P3 redevelopment projects: conference center, parking garage, workforce housing • Operations/programming: additional city-provided or privately-contracted services • Advantages: • Targeted: Dedicates tax increment for district • Scale: Large, stable revenue source over 25-year period • Feasibility: Does not require voter approval • Examples of downtown URAs: • Nearly 3 dozen in Colorado • Peers: Pueblo (formed) and Canon City (exploratory phase) Long-Term Strategic Planning • Implementation of recommended strategic actions will require more resources for the BID • Either additional FTE staff or as-needed contractors • Potential new funding sources for Board discussion/feedback: • • • • • Optimize collections of existing BID assessment revenue Aggressively pursue grants Advocate for new city-wide taxes on retail marijuana and vacation rentals Negotiate local return of some portion of downtown parking revenue Explore Urban Renewal Authority with Tax Increment Financing for Camino del Rio / North Main corridor Funding Sources • Optimize BID mill levy collections • Very preliminary analysis suggest BID could capture more assessment revenue within existing mill levy & boundaries • Review assessor’s records to confirm BID mill levy is being assessed & collected for all subject properties • Revisit “opt-outs” and market BID’s new value-added services • Aggressively pursue grant opportunities • Hire a contractor to assemble a grants calendar (list of relevant grant programs and application deadlines) • Staff to write grants targeted to priority initiatives • Partner with City, County, and non-profit partners Funding Sources • Advocate for City-wide taxes on retail marijuana • Excise and/or sales tax (e.g. Carbondale) • Requires voter approval • Advocate for City-wide increase to short-term lodging tax on vacation rentals only (existing hotels exempt) • Downtown residents are critical to maintaining “authentic vibrancy” • Increase existing lodging tax from 5% to 15% on vacation rentals • Use revenues to create a downtown housing fund to subsidize residential projects downtown • Funds awarded on a competitive, publicly-transparent RFP process Funding Sources • Discuss local return of parking revenue with City • Dedicate an increment of parking revenue to downtown services • Example: BID manages private vendor to do extra cleaning of downtown sidewalks, transit stops, trail/bike lanes • All revenue stays under City control, but BID advises City each year on priorities for local return • Market parking-funded improvements to visitors • “Your small change is making big changes downtown” Funding Sources • Explore Urban Renewal Authority / Tax Increment Financing • • • • Dedicates sales and/or property tax to renewal area Biggest, most stable revenue source Can fund capital projects and O & M for services Could allow for investment in Camino del Rio & North Main corridor • • • • Make corridor more pedestrian friendly Connecting downtown to the river Catalyze redevelopment projects (convention center, parking garage, etc.) Allow for downtown expansion • Does not require voter approval • Undertake feasibility study in partnership with City and County • Finding of blighted conditions which can’t self-correct • Approval of City Council Funding Sources Durango BID & Media Contact Tim Walsworth Executive Director, Durango BID [email protected] (970) 375-5068 Consultant Contact Jeremy Nelson President, REgeneration Strategies [email protected] (415) 425-9848 Questions? • Action item(s) for today’s meeting: • Provide feedback on these recommendations • Especially in relationship to 2015 budget discussion • Next step(s): • Review these recommendations in detail to inform budget priorities over next 2-3 Board meetings • Budget due to City in October for their approval Action Item & Next Steps These retailers are good matches. Retailer Distance BEN AND JERRYS BUBBA GUMP SHRIMP COMPANY CALYPSO SAINT BARTH CANTINA LAREDO CARROWS CARVEL CHICOS CHIPOTLE COACH COLDWATER CREEK EDDIE BAUER EILEEN FISHER FIVE GUYS GAP HAAGEN DAZS HOME GOODS HOOTERS J JILL JAMES PEARCE JCREW JOS A BANKS KENICHI RESTAURANT KINDERDANCE LIDS LULULEMON ATHLETICA MARSHALLS MICHAELS MOES SOUTHWEST GRILL ORVIS OUTBACK STEAKHOUSE PRECISION TUNE AUTO CARE RAINBOW REGAL CINEMAS SMITHS FOOD SPORT CLIPS TALBOTS THE EGG & I TOMMY BAHAMA TROPICAL SMOOTHIE TUESDAY MORNING WEST MARINE WHICH WICH WHOLE FOODS MARKET None known to be in area None known to be in area None known to be in area None known to be in area None known to be in area None known to be in area None known to be in area None known to be in area None known to be in area None known to be in area None known to be in area None known to be in area None known to be in area None known to be in area None known to be in area None known to be in area None known to be in area None known to be in area None known to be in area None known to be in area None known to be in area None known to be in area None known to be in area 37.2 4601 E MAIN ST None known to be in area None known to be in area None known to be in area None known to be in area None known to be in area 37.0 4921 E MAIN ST None known to be in area None known to be in area None known to be in area 39.4 600 E 20TH ST None known to be in area None known to be in area None known to be in area None known to be in area None known to be in area 38.8 3030 E MAIN ST None known to be in area None known to be in area None known to be in area Distance is the straight-line mileage from your site to nearest existing retailer location. Durango, CO 3/17/2014 Address City State FARMINGTON NM FARMINGTON NM FARMINGTON NM FARMINGTON NM Retailers with locations greater than fifty miles from this site are shown "None known to be in area." These retailers match well but their existing locations are in close proximity of your site. Retailer BED BATH AND BEYOND PIER 1 IMPORTS SPORTS AUTHORITY ZUMIEZ JAZZERCISE CROSSFIT EARTHBOUND TRADING CO STARBUCKS ROCKY MOUNTAIN CHOCOLATE FACTORY RCC WESTERN & WORK WAREHOUSE WALMART - NEIGHBORHOOD MARKET NATURAL GROCERS CITY MARKET GREASE MONKEY AUTOMOTIVE Distance is the straight-line mileage from your site to nearest existing retailer location. Distance 2.5 2.5 2.5 2.5 2.7 2.9 3.9 3.9 3.9 4.1 4.2 4.2 5.0 10.9 Address 800 SOUTH CAMINO DEL RIO 800 S CAMINO DEL RIO 800 S CAMINO DEL RIO 800 S CAMINO DEL RIO 225 TURNER DRIVE 360 S CAMINO DEL RIO 532 MAIN AVE 558 MAIN AVE 561 MAIN AVE 830 S CAMINO DEL RIO 1155 S CAMINO DEL RIO 1123 CAMINO DEL RIO 3130 MAIN AVE 10 RIVER RD Durango, CO 3/17/2014 City DURANGO DURANGO DURANGO DURANGO DURANGO DURANGO DURANGO DURANGO DURANGO DURANGO DURANGO DURANGO DURANGO DURANGO State CO CO CO CO CO CO CO CO CO CO CO CO CO CO Retailers with locations greater than fifty miles from this site are shown "None known to be in area." Durango, CO Operational Status of Retailers 3/17/2014 Retailer Concept Website Square Footage BED BATH AND BEYOND BEN AND JERRYS BUBBA GUMP SHRIMP COMPANY CALYPSO SAINT BARTH CANTINA LAREDO CARROWS CARVEL CHICOS CHIPOTLE CITY MARKET COACH COLDWATER CREEK CROSSFIT EARTHBOUND TRADING CO EDDIE BAUER EILEEN FISHER FIVE GUYS GAP GREASE MONKEY AUTOMOTIVE HAAGEN DAZS HOME GOODS HOOTERS J JILL JAMES PEARCE JAZZERCISE JCREW JOS A BANKS KENICHI RESTAURANT KINDERDANCE LIDS LULULEMON ATHLETICA MARSHALLS MICHAELS MOES SOUTHWEST GRILL NATURAL GROCERS ORVIS OUTBACK STEAKHOUSE PIER 1 IMPORTS PRECISION TUNE AUTO CARE RAINBOW RCC WESTERN & WORK WAREHOUSE REGAL CINEMAS ROCKY MOUNTAIN CHOCOLATE FACTORY SMITHS FOOD SPORT CLIPS SPORTS AUTHORITY STARBUCKS TALBOTS THE EGG & I TOMMY BAHAMA TROPICAL SMOOTHIE TUESDAY MORNING WALMART - NEIGHBORHOOD MARKET WEST MARINE Bed and bath linens, cutlery, kitchenware, home decor, lamps, drapes Candy, ice cream, yogurt Restaurants, bars Apparel - men's, apparel - women's Restaurants, bars Fast food, restaurants, bars Bakeries, bagels, pretzels, candy, ice cream, yogurt Accessories, apparel - women's Fast casual restaurants Supermarkets, drug stores Accessories, leather, luggage, off-price, outlet stores Apparel - women's health clubs/gyms Apparel - men's, apparel - women's, accessories Apparel - men's, apparel - women's, home decor, lamps, drapes Accessories, apparel - women's Fast casual restaurants Apparel Auto supplies, car care Candy, ice cream, yogurt Apparel, bed and bath linens, home decor, lamps, drapes Restaurants, bars Apparel - women's Apparel - men's, apparel - women's, furniture, beds health clubs/gyms Apparel - women's, shoes Apparel - men's, off-price, outlet stores Restaurants, bars health clubs/gyms Accessories, apparel - specialty Apparel - men's, apparel - women's, sporting goods, athletic wear Apparel, bed and bath linens, home decor, lamps, drapes Art, collectibles, frames, art supplies, crafts, hobbies Restaurants, bars Nutrition shops, diet centers Apparel - men's, sporting goods, athletic wear, pets, animal supplies Restaurants, bars Furniture, beds, home decor, lamps, drapes Auto supplies, car care Apparel - children's, apparel - women's apparel - children's, apparel - men's, apparel - specialty, apparel - women's, shoes Movie theaters Candy, ice cream, yogurt Supermarkets Beauty salons, tanning Sporting goods, athletic wear Coffee bars, juice bars Apparel - women's, shoes Fast casual restaurants Accessories, apparel - men's, apparel - women's Coffee bars, juice bars Close-out stores Supermarkets Boats, marine supplies, sporting goods, athletic wear www.bedbathandbeyond.com www.benjerry.com www.bubbagump.com www.calypsostbarth.com www.croinc.com www.carrows.com www.focusbrands.com www.chicos.com www.chipotle.com www.citymarket.com www.coach.com www.coldwatercreek.com www.crossfit.com www.earthboundtrading.com www.eddiebauer.com www.eileenfisher.com www.fiveguys.com www.gapinc.com www.greasemonkeyintl.com www.haagen-dazs.com www.tjx.com www.hooters.com www.jjill.com www.jamesperse.com www.jazzercise.com www.jcrew.com www.josbank.com www.kenichirestaurants.com www.kinderdance.com www.lids.com www.lululemon.com www.tjx.com www.michaels.com www.moes.com www.naturalgrocers.com www.orvis.com www.bloominbrands.com www.pier1.com www.precisiontune.com www.rainbowshops.com www.bootbarn.com www.regalcinemas.com www.rmcf.com www.smithsfoodanddrug.com www.sportclips.com www.thesportsauthority.com www.starbucks.com www.thetalbotsinc.com www.theeggandirestaurants.com www.tommybahama.com www.tropicalsmoothie.com www.tuesdaymorning.com www.walmartstores.com www.westmarine.com 5,500 - 85,000 150 - 1,200 5,000 - 16,000 1,800+ 5,000 - 7,000 4,900 - 5,600 450 - 3,000 1,500 - 4,000 1,000 - 2,500 1,100 - 54,500 1,200 - 4,200 4,000 - 6,000 5,500 - 6,500 4,000+ 2,000 - 3,000 2,750 - 35,000 2,100 - 5,000 500 - 1,200 25,000 - 65,000 4,000 - 8,000 4,200+ 2,500 - 3,500 4,000 - 4,500 800 - 1,200 2,400 - 3,500 25,000 - 65,000 5,800 - 18,200 350 - 3,000 5,000 - 13,000 12,000 - 23,000 5,500 - 7,500 9,000 - 15,000 2,000 - 5,000 2,000 - 15,000 3,500 - 7,500 60,000 - 100,000 150 - 1,900 1,000 - 1,400 35,000 - 85,000 100 - 2,000 2,100 - 10,000 3,000 - 4,000 2,000 - 10,000 1,200 - 2,200 8,000 - 10,000 42,000 - 55,000 6,000 - 35,000 Operating in Targeting CO Franchise? CO? for expansion? NO YES NO NO YES YES YES YES NO NO NO NO YES NO NO YES NO YES YES NO YES NO NO NO YES NO YES NO YES NO NO NO YES NO YES NO YES NO NO NO YES NO YES NO NO NO NO NO YES NO NO NO YES YES YES YES YES NO YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES NO YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES NO NO YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES NO YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES NO YES Information is drawn from our best known resources at the time of this study. Information specific to individual retailers is subject to change. Durango, CO Operational Status of Retailers 3/17/2014 Retailer Concept Website Square Footage WHICH WICH WHOLE FOODS MARKET ZUMIEZ Fast food Supermarkets Apparel - men's, apparel - women's, shoes www.whichwich.com www.wholefoodsmarket.com www.zumiez.com 600 - 1,200 18,500 - 80,000 2,900+ Operating in Targeting CO Franchise? CO? for expansion? NO NO NO YES YES YES YES YES YES Information is drawn from our best known resources at the time of this study. Information specific to individual retailers is subject to change.