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11. Resolution 4935 - National League of Cities America Downtown ProgramREPORT TO: -C-A"ty of Kalispell post Office Box i997 - Kabspedi. Montana 59 903-1997--Telephone'406)758-7700 Fax(406)758-7758 The Honorable Mayor Pamela B. Kennedy and City Council FROM: Susan Moyer, Community Development Director Frank Garner, Acting City Manager SUBJECT: National League of Cities' America Downtown Program MEETING DATE: September 20, 2004 BACKGROUND: One of the primary functions of the Community Development Department is to assist in the development and implementation of sound planning activities to benefit our community. As a result, the Community Development Department has participated or partnered in numerous surveys and studies to identify community needs and ways to achieve results. A prime example of a CD funded project is the 1979 Downtown Redevelopment Plan which served the community well for twenty years. As a member of the National League of Cities, Kalispell is eligible to obtain the services of HyettPalma for the preparation of a Downtown Action Agenda through the America Downtown Program. This program employs a multitude of research techniques, including visioning, interview, community meetings, issue sessions, focus groups, resident and business owner surveys and solid economic research. Information garnered through this program will directly impact the mission and goals of the Community Development Department in regards to economic development and planning as well as assist the Business Improvement District in identifying its goals and methods of achieving same. Therefore, a 50150 split of the $40,000 fee is proposed, with the City's share coming out of the Community Development Revolving Fund and the remaining amount to be paid by the BID. The Mayor, City Council, City staff directors and Downtown business organizations will play an integral part in this planning process. A Community Vision Session will be held and attended by major and varied downtown constituents. At least three structured work sessions will be held with the Mayor and City Council; city staff directors; and Downtown business organizations to discuss where we are now as well as what key issues you think Downtown will be facing over the next 3 to 6 years. RECOMMENDATION: Staff recommends the City Council pass Resolution No. authorizing the Mayor to enter into a contract with the National League of Cities and HyettPalma for the preparation of a Downtown Action Agenda. FISCAL IMPACT: S20,000 will be paid to the National League of Cities from the Community Development Revolving Fund budget 2880-480-470210-714. The remaining $20.000 will be paid from the Business Improvement District's budget. ALTERNATIVES: As suggested by Council. Respectfully submitted Susan Moyer, Director Community Development Date Memo Prepared: September 2, 2004 Frank Garner, Acting City Manager RESOLUTION NO.4935 A 13VCni TTTTflV ATiTiTC1DT7TNf" T`iiV ARAVnD lPfl TiNT.VD 'rUV CTTV "V le' AT TCT) i T A i\. L'JV V.IA..V 1AlLV1\ tav a11Viiui,i\v iii� yr,,�ivim Av ­il,;xx AA,A, t.xm1 VA' i1A1JlVi. iLr11L INTO A CONTRACT WITH THE NATIONAL LEAGUE OF CITIES AND HYETTPALMA FOR THE PREPARATION OF A DOWNTOWN ACTION AGENDA. WHEREAS, the City of Kalispell is a member of the National League of Cities and is therefore eligible to obtain the services of HyettPalma for the preparation of a Downtown Action Agenda through. the America Downtown Program; and WHEREAS, the Program will use a variety of research techniques in order to identify needs and long-range goals of our community as well as the downtown area; and WHEREAS, the Program will benefit both the City of Kalispell and the Downtown Business Improvement District and therefore the City and the BID will split the $40,000 cost of the Downtown Action Agenda Program. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL AS FOLLOWS: SECTION I: That the City of Kalispell agrees to pay $20,000 from the Community Development Revolving Loan Fund budget toward the S40,000 total cost of the Downtown Action Agenda Program. SECTION II: That the Mayor is authorized to enter the City into a contract with the National League of Cities and H_yettPal a for the preparation of a Downtown Action Agenda. PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY OF KALISPELL THIS 7TH OF SEPTEMBER, 2004. Pamela B. Kennedy Mayor ATTEST: Theresa White City Clerk Americas Downtown@ New Thinking. New Life. Detailed Scope of Services for the Preparation of a Downtown Action Agenda through the America Downtowne Program Following is a detailed scope of the services provided through America Downtown(D., New Thinking. New Life„ in conjunction with the preparation of a Downtown Action Agenda, The Action Agenda is prepared for a commercial district through a process which employs a multitude of research techniques, including visioning, interviews, community meetings. issue sessions, focus groups, resident and business owner surveys, and solid e( tonornic research_ Startup To form the NLC/HyettPalma working partnership with the community, a local Process Committee will be formed. The Process Committee will serve as the group which coordinates the collection of local information and ensures that all appropriate sessions are arrangers to enable maxis-num iocal involvement in completing the Action Agenda, Specific individuals who should serve on the Process Committee wilt be determined through consultation with the community. HyettPalma will work in partnership with the Process Committee throughout the assignment. At the outset, HyettPalma will obtain from the community all previously completed plans, studies, analyses, etc., prepared for Downtown_ This information will be reviewed to ensure a clear understanding of past work to enhance Downtown. Local Interviews, Downtown Vision and issue Sessions As the project is started in the community, HyettPalma will conduct interviews with "key" Downtown leaders. A "key" Downtown leader is defined as one who can either provide critical information or who is critical to the success of the project. Key Downtown leaders asked to participate in the interviews Might include: .� A major Downtown property owner/manager, ■ A major Downtown business owner; = A Key lender, A key developer; ■ A representative of a major Downtown institution or organization; America Downtown(g) Methodology 141itt alraa National LWue of Cities 160o Prinrc Srrect, 5uire 110 ] 301 Nnnsylvania Avcnue, NW Alexandria, Pisginia 22314 Washingmn, DC 20004 America Dovmtown® New Thinking. New Life. A major potential tunder; and Individuals who are highly influential locally in swaying or establishing public opinion_ Interviewees will be asked; ■ Their opinion of Downtown as it stands today; ■ The issues they think Downtown is facing; and • Their opinion of what must be done to make Downtown the best it can be in the future. As part of the project, a Downtown Vision Session will be conducted by HyettPalma, This session will be open to the public and should be widely and innovatively advertised locally -- by delivering Byers door-to-door to every Downtown business owner, by placing creative ads in local newspapers and an local cable, by sending announcements to all local non-profit organizations and service groups, by asking churches to announce the meeting at Sunday services, by mailing postcards to r)_. _.. n and e.-ner �t y ___.__i-'-wrier_ etc. The ap - achi �.-___ should hu -11 rh _ ,. _ . _" IJtJwI ICiJWI € d[ IW II�II ICii:tty iJ[ E]JJtl1 iy owners, CLG. The �1{JF:irPC(�i 1 ilefC should LIC i (1C [Y3iJI!~ [i IC €4€�'T7�11r1. Efforts should be made to encourage Downtown's major constituents to attend. These include-. ■ Downtown business owners; ■ Downtown property owners; ■ Members of Downtown business organizations; ■ Municipal officials and staff; ■ Downtown financial institution reps; Downtown civic organization reps; Utility reps; ■ Preservation group reps; • Inner-city neighborhood group reps; ■ {downtown residents; ■ Media reps (management and reporting); and r Downtown fenders and potential fenders. Those attending the Community Vision Session will be asked the following questions. These questions should be made available to particimants in advance so that they can come to the session prepared to respond to the questions. — ■€ If the citizens, the business community, and the government were to work together over the next 5 years to make Downtown the very best it could be, what would you like to sea result from that effort? ■ For you to consider those efforts a success, what would Downtown look like in 5 years? = What would the property and buildings in Downtown be used for? 1■ Who would the customers and users of our successful Downtown be in 5 years? s What kinds of -goods and services would you be able to find here? America Downtown€1)Methodology � Nadonal League orCiries America Downtown@ .New Thinking. ,Now Life. ■ What is the ire you want Downtown to have in 5 years? the Community Vision Session will be conducted in a manner that elicits discussion and motivates each of the constituents who attend the session to participate in defining a preferred vision for the future Downtown - In addition to the Community Vision Session, HyettPalma will also conduct at least three issue sessions with: r The Mayor and City Council; City staff directors; and • Downtown business organizations. The issue sessions will be structured as work sessions_ Participants will be asked: to come to the sessions prepared to discuses: ■ Projects or programs they now have underway or pending which relate to Downtown: and ■ The key issues which they think Downtown will be facing over the next 3 to 6 years. In addition, those at each issue session should be asked to prepare the following: �• MaYoNCitv_Council — The (Mayor and City Councii members will be asked to comment on/add to the items raised during the Community Vision Session and to relay the key 'issues they face in dealing with Downtown as elected officials; ■ Staff Directors — Staff directors will be asked to bring any written material they may have which describes programs, projects or actions which are being undertaken by their respective departments to enhance Downtown; and ■ Downtown Business Or-ganizations — Each existing Downtown business organization (such as the Chamber of Commerce, marchants association, DDA, BID, EDC, etc.) will be invited to have its CEO and Board chair attend the meeting; the representatives of each organization should be asked to bring literature with them that describes their organization and its work -- i.e., the organization's work program, brochures, program descriptions, etc - The organization representatives will be asked to came prepared to discuss how their organization is currently involved in Downtown and how it might be involved in Downtown's future enhancement. Retail Market Analysis A retail market analysis will be completed for Downtown, The purpose of the retail market analysis is to: Analyze the current retail climate and operations in Downtown; r Determine future retail potentials of the commercial district; and America Downtown& Methodology 3 N26=4 League of cities America ©owlntownO New Thinkmg, New Life. Use this information as a base for defining specifically tailored, manageable, and action - oriented economic strategies that will restllt in a more profitable Downtown. The specific elements of the retail market analysis are described below_ • Definition of the Trade Area and Customer Groups The primary retail trade area will be defined to establish the area for which data will be compiled for Downtown. Data compiled for the primary trade area will be analyzed to: Identify the economic characteristics and buying pattems of geographically based customers and potential customers, and Project the additional and immediate economic opportunities that these customers can generate for Downtown. The trade area shall he defined, for the purposes of the market analysis, as the geographic area within which the majority of the commercial districts customers and potential customers are located. These customers may include residents of the primary trade area and employers and employees who work within the primary trade area, Visitors and students. Once the trade area has been delineated, the following information shall be obtained concerning customers within the trade area: , Demographic and socio-economic characteristics of the population within the trade area; anal Income of the population within the Downtown trade area, • Assessment of Competing Shopping Facilities An assessment of the competing retail shopping facilities within the primary trade area and surrounding areas shall be undertaken. The assessment shall include an identification of other retail facilities by location, size and type of businesses which may compete with the retail businesses of Downtown. The purpose of the competition assessment is to, Gain a broad understanding of the market area's dynamics; Determine the economic relationship between the cornpetsng facilities and those Downtown, and Use this data to compute the realistic economic potentials of Downtown, a lnventorylAssessment of Downtown's Retail Development and Business Climate An analysis of the current business climate of Downtown shall be completed which characterizes Downtown and the overall market appeal by type of merchandise, quality of merchandise, type of huildsng space, and image projected, America Downtown(& Methodology 4 (�Ww National League of atim America Downtown® New Thinking. New Life. A thorough inventory of all existing retail businesses and buildings within Downtown shall also be completed. Retail uses will be identified by business type, SIC classification, and square footage of building Space_ Maps identifying the locations of all existing retail businesses shall also be prepared. The methodology for the inventory shall be prepared by HyettPalma_ The inventory shall be completed by the community. HyettPalma shall complete the assessment of Downtown's current business climate and the information compiled by the community shall be analyzed by HyettPalma and incorporated into the main body of the retail market analysis document w Resident Surveys, Business Owner Surveys, and Focus Groups Two surveys will be conducted as part of this project_ These are: A random sample survey by telephone of residents in the primary trade area; and A survey of downtown business: owners. HyettPalma will design survey instruments for local administration and tabulation, with analysis of results completed by HyettPalma. It is suggested that a goal of 100 resident telephone surveys be adopted as a target for completion. Also. 100% of business owners within Downtown should be surveyed, if possible. In conjunction with the community, HyettPalma will develop the methodology which the community will use to conduct the surveys and tabulate survey results. HyettPalma will also conduct two focus group sessions as part of this project. These are: A retail customer focus group; and An employee focus group. Each focus group will consist of 7 to 11 people who represent different types of potential customers. The groups will be identified by HyettPalma, assembled by the Process Committee and asked by HyettPalma their opinion concerning the current and future offerings of Downtown_ The findings of the surveys and focus group sessions will be documented by HyettPalma and used to analyze Downtown's retail potential and to assist in defining the vision for the commercial district. • Calculation of Retail Sales Potential At this point in the project, the retail sales potential of the Downtown will be calculated. This calculation will be based on the findings of the; ■ Primary trade area analysis; ■ Assessment of competing retail facilities, and ■ Analysis of the economic climate of the commercial district_ Retail sales potential — which could be realized through existing business expansions or additional business openings — will be expressed in; +� Total dollar volume, and ■ Square footage of floor area. America powntOwnO Methtd0409y National League of Citirs America Downtown® New Thinking. New Life. Retail potential will also be documented through the preparation of The Retail Report) for Downtown. The Retail Report® is a customized projection of retail customer spending potential -- which will be specifically prepared for Downtown's retail customer base. The Retail Reports was developed and is owned by HyettPaJma -- and is available only through HyettPalma. The report contains the most timely and reliable information concerning the spending potential of customers within a defined trade area found in the Downtown revitalization industry today. w Potential Business Expansions and Additional Business Openings A list of businesses types that have the potential to successfully expand in or be recruited to Downtown will be defined at this point in the project. The business types will be determined based on the findings of the: ■ Sales potential calculation; ■ Analysis of competing retail facilities; ■ Analysis of the economic climate of the commercial district; Interviews with local business persons and others; Resident and business surveys; ■ Focus group sessions; and ■ The professional opinion of HyettPaima. This list of business types will be essential in efforts to encourage the expansion of existing Businesses within, and to recruit new businesses for, Downtown, Office Market Analysis To identify an appropriate office market orientation for Downtown, HyettPalma will: Complete a general assessment of the current office operations and climate in the commer- cial district; ■ Project future office development potential for the commercial district; and ■ refine a list of office types that are most appropriate for Downtown. Housing Market Analysis To identify an appropriate housing market orientation for Downtown, HyettPalmo will: ■ Complete a general assessment of the current housing market and climate in the commercial district; ■ Project future housing development potential for the commercial district; and ■ Define a list of housing types that are most appropriate for Downtown_ America Downtown® Methodology to ow N36onai League of Odes America ®ownitown O New Thinking. New Life. Retail, Office and Housing Market Position Statements Based on the above retail, office and housing market analyses, a position statement shall be prepared for Downtown which: ■ Identifies the most appropriate retail, office and housing market orientations -- or niches; and ■ Will serve as a guide forfurther enhancing and positioning Downtown. Recommended Course of Action Based on the above, a 5-year market -driven course of action will be recommended for attaining the shared vision and capturing downtown's economic potentials_ All strategies will: ■ Be designed to resolve the issues facing Downtown; • Allow Downtown: to attain the Community Vision; ■ Allow Downtown to capture the retail, office and housing opportunities identified in the market analyses; ■ Be manageable using local resources and capabilities; and ■ Be action -oriented and results -oriented. These economic enhancement strategies will be expressed through the preparation of a strategic business plan for Downtown, which programs spedific actions to be completed over the five year timeline, with an annual action agenda prepared to guide the implementation of the business plan each year, and which addresses, as a minimum, the fallowing: • Existing Business Enhancement Strategies — to further strengthen Downtown's existing businesses; • Business Recruitment Strategies — to fill the business gaps; • Business Clustering Strategies — to place business in appropriate locations to enable the sharing of customers; • Real Estate Development Strategies -- to stimulate and guide the further development of quality projects throughout Downtown; • Public Space Enhancement Strategies -- to ensure the continued enhancement of all public space throughout Downtown, • Growth Management Strategies — to provide pro -business, pro -active regulations and guides for the further enhancement of Downtown; America DowrrtownO Methodology 7 14 National Lva&uc of cities Amelrical downtown® New Thinking, New Life. • Traffic Flow Enhancement Strategies --- to ensure the most convenient, user-friendly system possible,, s Parking Enhancement Strategies -- to properly manage spaces and provide an adequate amount of space; • Public Safety Improvement Strategies -- to keep Downtown safe; • Property Maintenance (public and Private) Strategies — to ensure that Downtown is clean and that all private and public improvements are well maintained; * Incentives to Stimulate Further investment in Businesses and Buildings — to strengthen Downtown's bottom line; and 0 Public Relations/Marketing Strategies -- to tell the world about the good things happening in Downtown. When defining a vision and completing a comprehensive market analysis -- such as is described in this scope -- a long list and wide array of issues and concerns are revealed_ At this time, it is impossible to say what all of those issues and cancems might be. However, let us assure you that HyettPalma and the National League -of Cities will address each issue raised that will have an imvact on the future economic success of Downtown. This will be done by defining actions to resolve the identified issues and concerns. All strategies recommended as a part of this assignment will be written as Action Plans, It has been our experience that the most successful commercial district revitalization efforts in the country are those where actions are taken by both the public and private sectors_ Therefore, it should be noted that the .Action Plans will specify activities that should be spearheaded by both public and private sector constituents in Downtown. Recommended Partnership to Manage Downtown Enhancement HyettPalma will recommend a management plan, and public -Private partnership structure, for implementation of the economic enhancement strategies -- or, where appropriate, the restructuring of an existing Downtown partnership. Finial, On -Site Presentation At the conclusion of the assignment, HyettPalma will address an audience of; ■ Members of the business community, ■ Representatives frorn local government; ■ Local residents, - The local media, and a Others invited by the community. America Downtowng Methodology ��i�1L .ITlii� National Lcsguc of Citirs America Downtown© New Chinking. Nezu Life. The purpose of the presentation will be to: ■ Reveal the findings of the market analyses, and ■ Unveil the recommended strategies. Written Report All findings of the assignment shall be }prepared and presented in writing. Alt materials prepared through America Downtown@) 51ha11 be presented in camera-ready form on 8 1f2" x 11" white paper allowing for future mass -production of the materials. In addition, a read -Only PDF electronic file of the document will also be presented at completion. Timeline The professional assignment shalt be started at the earliest possible date by HyettPalma immediately following your execution of a contract with the National League of tines. I he specific scheduie for the assignment shall be determined in consultation with the community. The assignment will take approximately 5 months from project start to complete. America aownto"S Methodology 0 National League of Cities