HomeMy WebLinkAbout1477 Professional Services Agreement with Jeff Green Partners Hoffman Strategy Group Retail Feasibility Analysis BILL NO. 2016-036 ORDINANCE NO. /47 /
AN ORDINANCE APPROVING A PROPOSAL SUBMITTED BY JEFF GREEN
PARTNERS/HOFFMAN STRATEGY GROUP REGARDING A RETAIL MARKET
FEASIBILITY ANALYSIS AND A RETAIL MASTER PLAN AND AUTHORIZING THE CITY TO
ENTER INTO A PROFESSIONAL SERVICES AGREEMENT WITH JEFF GREEN PARTNERS
WHEREAS, Jeff Green Partners/Hoffman Strategy Group (the "Consultant") submitted a
proposal dated August 9, 2016, attached hereto as Exhibit A and incorporated herein (the
"Proposal"), to City staff in connection with Consultant's plans to conduct a retail feasibility
analysis and develop a retail master plan;
WHEREAS, Consultant requests approval of, and City staff recommend and request the
Board to approve the Proposal and Professional Services Agreement with Jeff Green Partners,
attached hereto as Exhibit B and incorporated herein (the "Agreement"); and
WHEREAS, the Board of Aldermen find it to be in the best interests of the City in order
to further the objectives of industrial and economic development of the City, as well as in
furtherance of the objective to protect the health, safety, and welfare of the businesses and
citizens of the City, to approve the Proposal and the Agreement.
NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF ALDERMEN OF THE CITY OF
RIVERSIDE, MISSOURI AS FOLLOWS:
SECTION 1. BEST INTEREST OF THE CITY TO APPROVE PROPOSAL. In order to
further the objectives of industrial and economic development of the City, as well as in
furtherance of the objective to protect the health, safety, and welfare of the businesses and
citizens of the City, the Proposal, attached hereto as Exhibit A and incorporated herein, and the
Agreement, attached hereto and incorporated herein as Exhibit B is hereby approved.
SECTION 2. AUTHORITY GRANTED. The Mayor, City Administrator, Special Counsel
to the City - Spencer Fane LLP, and other appropriate officials and employees of the City are
hereby authorized and directed to pay the retainer and other fees set forth in the Agreement, to
authorize Consultant to proceed with the Scope of Work set forth in the Agreement, and to take
any and all other actions as may be deemed necessary or convenient to carry out and comply
with the intent of this Ordinance and to execute and deliver for and on behalf of the City all
certificates, instruments, agreements and other documents, as may be necessary or convenient
to perform all matters herein authorized.
SECTION 3. EFFECTIVE DATE. This Ordinance shall be in full force and effect from
and after its passage and approval.
[Remainder of Page Left Blank— Signature Page to Follow]
WA 8539382.1
BE IT REMEMBERED that the above was read two times by heading only, PASSED AND
APPROVED by a majority of the Board of Aldermen and APPROVED by the Mayor of the City
of Riverside, Missouri, this 16'" day of August, 2016.
Kalhleen L. Rose, Mayor
.n
J
RobinaKitIcafd, Gity Clerk o
Approved as to form:
Spa r Fane LLP,
Sp cia ounsel to the City
by Joe Bednar
WA 8539382.1
EXHIBIT A
Retail Market Feasibility Analysis and Retail Master Plan Proposal
WA 8539382.1
August 9, ■
2016 JEFAREEN ■
RTNERS
HOFFMAN STRATEGY GROUP
Mr. Greg
Mills
Mr. Mike Duffy
City of Riverside
2950 NW Vivion Road
Riverside, MO 64150
RE: Retail Market Feasibility Analysis and Retail Master Plan for Four Areas in the City of Riverside, MO
Dear Greg and Mike:
At your request, this proposal will address the preparation of a retail master plan for the City of Riverside,
MO. The objective is to understand the quantitative and qualitative retail opportunities for the City of
Riverside, MO, specific to four areas:
• Southside of 1-635 and Horizons Parkway
• Downtown Riverside, MO
• Argosy Casino
• Intersection of NW Vivion and NW Gateway
Retail Study Areas 3
Ada
All. n
fr-
[ '
_ � it �N -�. •.T
Background
The City of Riverside, MO, is interested in developing a retail master plan that relates to four parcels as
5320 N. 26"Street, Phoenix, AZ 85016
(602) 795-8351
&tail MasterPlan Ruposal -2- Aug. 9, 2016
For CityoMivaside,MO
identified in the map on the previous page. This retail master plan would address the viability of retail;
how the viable retail is complementary(as opposed to competitive)to existing retail;and the extent to
which the City of Riverside offers regional retail opportunities.
Jeff Green Partners/Hoffman Strategy Group proposes to conduct the retail feasibility analysis and
develop a retail master plan based on that analysis in the following way:
1. Evaluate the major existing and proposed shopping districts and retail concentrations in
the Riverside, MO,area.
2. Define trade areas and collect residential trade area characteristics for the City related to
the four property locations.
3. Quantify and characterize the other retail demand segments(worker and tourist) in each
identified submarket(trade area).
4. Analyze the current retail landscape in each of the identified shopping areas and retail
concentrations from a merchandising perspective.
S. Quantify the viability of retail across 27 categories(e.g., home improvement stores,
clothing and apparel,general merchandise,and food).
6. Develop an appropriate market position and optimal merchandise strategy for each of the
four property locations.
7. Quantify the sales revenue opportunity for viable new retailers(sales forecasts).
Scope of Work
Issues
Jeff Green Partners/Hoffman Strategy Group proposes to conduct a retail feasibility study that addresses
the following issues:
• What is the current competitive environment in the greater Riverside, MO,market(on both sides
of then River)? What are the implications on proposed new retail at each of the four
property sites?
• What residential trade area (both a convenience and destination)will be served by potentially
supportable retail at each of the four property sites?
• What are the population,demographic and lifestyle (psychographic)characteristics in the
residential trade area for the five-year period 2016 to 2021?
• How many daytime business employees are in the immediate area of each of the four property
sites?
• What retail voids by category are evident in the greater Riverside market?
• Given the results of the above analysis,what types of retail are viable long-term on the four
property sites?
• Who are all the recommended viable tenants for each of the four property site locations?
• What are the sales forecasts for each recommended retail tenant?
• When is the retail supportable at each of the four property locations?
Jeff Green Partners/Hoffman Strategy Group
&W MasterPlanPmposal -3- Aug. 9,2016
For City ofltMrside,MO
Methodology
Jeff Green Partners/Hoffman Strategy Group will employ the following methodology to address the above
issues.
Field Evaluation.We will undertake a thorough evaluation of the Riverside, MO, market as well as
the four property locations. This evaluation will consider each property with respect to its
physical configuration,visibility,accessibility, parking, ingress/egress, planned/proposed road
improvements,as well as the area competitive shopping center properties and other retail
concentrations.
A kick-off meeting is required during the field evaluation. This meeting should include the Mayor
of Riverside,the City Administrator,community development;and stakeholders you deem
appropriate.
Trade Area Definition.We will define a trade area that is served by retail formats at each of the
four property locations in Riverside, MO. Trade areas will be based on:the accessibility
characteristics of the site; location,amount and type of retail competition;distribution of
population, population growth,and demographic characteristics;the various patron segments
who would potentially visit the proposed retail development; as well as other appropriate factors.
Population. Demographics and Lifestyles.The most recent population and household estimates
will be collected,along with future projections,from Nielsen, local planning agencies,and all other
appropriate sources for the trade area. Consumer lifestyle profiles will be evaluated using
Nielsen's PRIZM segmentation system,which is used by retailers in site selection. We will also
assess the number of daytime workers currently in the area around each of the four property
locations.
Retail Voids. The retail voids in the trade area by merchandise category will be quantified based
on consumer spending and retail sales data supplied by Nielsen.
Identify the Amount.Type.Timing and Retail Tenants Supportable. We will identify the type of
viable retail and the specific retailers that will optimally position the retail components for each of
the four property locations. Sales forecasts will be provided for those identified viable tenants.
Deliverables
A final copy report in PDF format will be presented to the Mayor,the City Administrator,and community
development of the City of Riverside, MO. The report will include our conclusions and recommendations;
retail feasibility analysis; a retail master plan based on the analysis and recommendations; and all maps,
graphics, data tables and supporting documentation in the appendices.
We will address the report's findings and recommendations in a conference call. Changes made to the
report will reflect the substance of questions and comments raised in the conference call. A final report in
PDF format will be provided that may be distributed to the city council and stakeholders.
Fees and Timetable
Our fee for the retail feasibility analysis and retail master plan is$28,000 plus travel expenses. We
propose a$2,000 cap on travel expenses,which covers Phoenix to Kansas City airfare for Jeff;airport
parking; rental car for Lincoln to Kansas City travel for Jerry;two rooms at two nights for field visit;one
Jeff Green Partners/Hoffman Strategy Group
1$eWMasterPlanhuposal -4- Aug. 9,2016
For City ofRrveis-,MO
night for the face-to-face presentation;and meals.
We will complete the study within 60 days of your authorization to proceed.
It is our standard business practice to request from the client a 50%retainer at the beginning of the study,
with the balance of the study fee, plus associated travel expenses,due within 30 days of project
completion.
Greg,we look forward to working with you on this project.
Cordially,
Jeffrey Green Jer ffman
Jeff Green Partners Hoffman Strategy Group
cc.Jeff Smith—VanTrust Real Estate
Rich Muller—VanTrust Real Estate
Jeff Green Partners/Hoffman Strategy Group
EXHIBIT B
Professional Services Agreement
by and between
the City of Riverside, Missouri and Jeff Green Partners
WA 8539382.1
PROFESSIONAL SERVICES AGREEMENT
THIS PROFESSIONAL SERVICES AGREEMENT ("Agreement"), is hereby made
and entered into this 16th day of August, 2016, ("Effective Date")by and between the CITY OF
RIVERSIDE,MISSOURI ("City"), a city and political subdivision duly organized and existing
under the constitution and laws of the State of Missouri, and JEFF GREEN PARTNERS
("Consultant"), collectively referred to as the "Parties".
WHEREAS, the City has conducted an extensive community-wide Master Planning
process; and
WHEREAS, this planning process was a combination of economic analysis, land use,
infrastructure planning and financing, design principles and guidelines, and community input;
and
WHEREAS, when analyzing the economic impact of this project, it is obvious the City
development project impacts not only the City, but also a much larger surrounding area; and
WHEREAS, given its location, Riverside is a workforce hub in the metro area, and has
had great success in attracting new jobs to the State of Missouri; and
WHEREAS, the City's intent and objective is to have a retail feasibility analysis
conducted in order to understand the quantitative and qualitative retail opportunities for the City
specific to four parcels as depicted in Exhibit A, attached hereto and incorporated herein to this
Agreement: (i) the Southside of I-635 and Horizons Parkway; (ii) Downtown Riverside, MO;
(iii) the area adjacent to the Argosy Casino; and (iv) the area located adjacent to the Intersection
of NW Vivion and NW Gateway; and
WHEREAS, it is also the City's intent and objective to create and adopt a retail master
plan specific to the four parcels depicted in Exhibit A that would address: (i) the viability of
retail development within the City limits; (ii)how the viable retail is complementary(as opposed
to competitive) to existing retail; and (iii) the extent to which the City offers regional retail
opportunities; and
WHEREAS, Jeff Green Partners/Hoffman Strategy Group submitted a proposal to the
City to conduct a retail feasibility analysis and to develop a retail master plan based on that
analysis.
NOW THEREFORE, in consideration of the performance by the City and the
Consultant under the terms hereof,the City and Consultant hereby agree as follows:
City hereby contracts with Consultant for the furnishing of Professional Services to
conduct a retail feasibility analysis and to develop a retail master plan specific to the four parcels
as depicted in Exhibit A (the "Project"), as more particularly described herein, in consideration
of these premises and of the mutual covenants herein set forth. By executing this Agreement,the
Consultant represents to City that Consultant is professionally qualified to perform the work on
this Project.
WA 8542946.1
SECTION I
DEFINITIONS
As used in this Agreement, the following terms shall have the meanings ascribed herein
unless otherwise stated or reasonably required by the Agreement, and other forms of any defined
words shall have a meaning parallel thereto:
"City" means the City of Riverside, Missouri, a municipal corporation duly organized
under the laws of the State of Missouri;
"Consultant" means Jeff Green Partners, its agents and representatives;
"Consultant Documents" means any and all documents required or reasonably implied by
the nature of the Project, including, but not limited to, plans, specifications, drawings, designs,
calculations, sketches, models and reports;
"Project" means the performance of a retail feasibility analysis and development of a
retail master plan for the City specific to the four parcels depicted in Exhibit A;
"Report" means the document submitted to the City and presented to the Mayor and
Board of Aldermen that will include: (i) the Consultant's conclusions and recommendations; (ii)
a retail feasibility analysis of the City; (iii) a retail master plan for the City based on the analysis
and recommendations; and (iv) all maps, graphics, data tables and supporting documentation in
the appendices of the report;
"Report Cost" means fee for the retail feasibility analysis and retail master plan delivered
to the City and a face to face presentation of the Report to the Mayor and the Board of Aldermen,
plus travel expenses; and
"Travel Expenses" means two (2) Phoenix to Kansas City airfares for two (2) trips by
Jeff Green; (2) airport parking fees; two (2) rental car trips for Lincoln to Kansas City travel for
Jerry Hoffman; two rooms at two nights for field visit; one night for the face-to-face
presentation; and meals.
SECTION II
COMPENSATION
2.1 TOTAL FEE: City agrees to pay Consultant a total fee of Twenty Eight
Thousand Dollars ($28,000.00), of which the City shall pay Fourteen Thousand Dollars upon
execution of this Agreement and the balance within fourteen days after the face to face
presentation of the Report to the Mayor and the Board of Aldermen, plus travel expenses that
shall not exceed Two Thousand Dollars ($2,000.00). The fee is based on the performance of the
Scope of Work attached hereto as Exhibit B and incorporated herein. All work shall be
completed within sixty days of the Consultant receiving from the City Administrator the
Authorization to Proceed.
2.2 TRAVEL EXPENSE: The Consultant shall be reimbursed at the actual cost, not
to exceed a total expense of Two Thousand Dollars ($2,000.00) for Travel Expenses.
2
WA 8542946.1
SECTION III
RETAIL FEASIBILITY ANALYSIS AND DEVELOPMENT OF A RETAIL MASTER
PLAN BY CONSULTANT
3.1 Consultant, consistent with the Scope of Work described more specifically within
Exhibit B, proposes to conduct the retail feasibility analysis and develop a retail master plan
based on that analysis in the following manner:
a) Evaluate the major existing and proposed shopping districts and retail
concentrations in the Riverside, MO, area;
b) Define trade areas and collect residential trade area characteristics for the City
related to the four property locations;
c) Quantify and characterize the other retail demand segments (worker and tourist)
in each identified submarket(trade area);
d) Analyze the current retail landscape in each of the identified shopping areas and
retail concentrations from a merchandising perspective;
e) Quantify the viability of retail across 27 categories (e.g., home improvement
stores, clothing and apparel, general merchandise, and food);
f) Develop an appropriate market position and optimal merchandise strategy for
each of the four property locations; and
g) Quantify the sales revenue opportunity for viable new retailers (sales forecasts).
SECTION IV
EXECUTION OF CONTRACT
IN WITNESS WHEREOF, this Agreement has been duly executed in multiple
counterparts (each of which is to be deemed an original for all purposes) by the parties hereto on
the respective date appearing below each party's signature to be effective on the Effective Date
herein specified.
[The remainder of this page is intentionally left blank.]
3
WA 8542946.1
APPROVED AS TO FORM:
City At rne�
THE CITY OF RIVERSIDE, MISSOURI
a Missouri Municipal Corporation
By: 2r
ayor
Date: oZl�
Robin 'hcaazd, City Clerk
CONSULTANT:
JEFF GREEN PARTNERS
Q�fm (._.�
By:
Jeffrey Green
Date: August 15 2016
4
WA 8542946.1
EXHIBIT A
DESCRIPTION OF PROJECT AND MAP
• Southside of 1-635 and Horizons Parkway
• Downtown Riverside, MO
• Argosy Casino
• Intersection of NW Vivion and NW Gateway
v Retail Study Areas 4
M �ar ' •� _
� e
w _ /
lr -,'M
Y' M90waYe P sI 0 �^ i
ON
6 •_ i
i
�K �0A .fir wr.
zq �
i
c 8>421u6 1
EXHIBIT B
SCOPE OF WORK
I. Issues - Consultant proposes to conduct a retail feasibility study that addresses the
following issues:
A. What is the current competitive environment in the greater Riverside, MO, market
(on both sides of the Missouri River)? What are the implications on proposed new retail at each
of the four property sites?
B. What residential trade area(both a convenience and destination)will be served by
potentially supportable retail at each of the four property sites?
C. What are the population, demographic and lifestyle (psychographic)
characteristics in the residential trade area for the five-year period 2016 to 2021?
D. How many daytime business employees are in the immediate area of each of the
four property sites?
E. What retail voids by category are evident in the greater Riverside market?
F. Given the results of the above analysis, what types of retail are viable long-term
on the four property sites?
G. Who are all the recommended viable tenants for each of the four property site
locations?
H. What are the sales forecasts for each recommended retail tenant?
I. When is the retail supportable at each of the four property locations?
II. Methodology - Consultant will employ the following methodology to address the above
issues.
A. Field Evaluation. Consultant will undertake a thorough evaluation of the
Riverside, MO, market as well as the four property locations. This evaluation will consider each
property with respect to its:
1. Physical configuration;
2. Visibility;
3. Accessibility;
4. Parking;
5. Ingress/egress;
6
WA 8542946.1
6. Planned/proposed road improvements, and
7. Area competitive shopping center properties and other retail
concentrations.
B. Kick-off meeting. This meeting is required during the field evaluation and shall
include the Mayor of Riverside, the City Administrator, community development; and any other
stakeholders the City deems appropriate.
C. Trade Area Definition. Consultant and City will define a trade area that is served
by retail formats at each of the four property locations in Riverside, MO. Trade areas will be
based on:
I. Accessibility characteristics of the site;
2. Location, amount and type of retail competition;
3. Distribution of population, population growth, and demographic
characteristics;
4. Various patron segments who would potentially visit the proposed retail
development; and
5. Other appropriate factors as agreed upon by the Parties.
D. Population, Demogrhics and Lifestyles.
I. The most recent population and household estimates shall be collected,
along with future projections, from Nielsen, local planning agencies, and all other
appropriate sources for the trade area;
2. Consumer lifestyle profiles shall be evaluated using Nielsen's PRIZM
segmentation system,which is used by retailers in site selection; and
3. Consultant shall also assess the number of daytime workers currently in
the area around each of the four property locations.
E. Retail Voids.
1. The retail voids in the trade area by merchandise category shall be
quantified based on consumer spending and retail sales data supplied by Nielsen.
F. Identify the Amount, Type, Timing and Retail Tenants Supportable.
I. Consultant shall identify the type of viable retail and the specific retailers
that will optimally position the retail components for each of the four property locations;
and
7
WA 8542946.1
2. Sales forecasts shall be provided for those identified viable tenants.
III. Deliverables.
A. A final copy report in PDF format shall be presented in a face to face meeting
with the Mayor,the City Administrator, and Community Development Director of the City.
B. The report shall include the:
1. Consultant's conclusions and recommendations;
2. Retail feasibility analysis;
3. Retail master plan based on the analysis and recommendations; and
4. Maps, graphics, data tables and supporting documentation included in the
appendices.
C. Consultant shall also address the report's findings and recommendations in a
conference call with those designated by the City Administrator as needed by the City.
D. Changes made to the report shall reflect the substance of questions and comments
raised in the conference call.
E. In addition to the face to face meeting, a final report in PDF format shall be
provided that may be distributed to the city council and stakeholders.
8
WA 8542946.1