HomeMy WebLinkAboutContract 1606 . .
_ U ( 11 MCCOMB GROUT Ltd.
® 1 J R E A L E S T A T E A N D /
( 1 1 1 1 1 R E T A I L C O N S U L T A N T S
Revised
June 27, 2001
Mr. Walter R. Fehst, City Manager ' ' 2 '
CITY OF COLUMBIA HEIGHTS �,��
590 — 40 Avenue NE Spa
Columbia Heights, Minnesota 55421
Dear Mr. Fehst:
In response to your request, we have prepared a work program to conduct an evaluation and
market analysis of retail areas in Columbia Heights. The focus of this analysis will be the area in
the vicinity of Central Avenue between 37 and 45 Avenues. Other retail uses along Central
Avenue between Fourth Avenue and I -694 will also be evaluated to determine the scope and
character of retail establishments in the area. Objectives for this analysis include the following:
• ♦ Evaluate physical characteristics of Columbia Heights retail area and identify changes to
improve how the area looks and functions.
• Identify retail and service uses suitable for Columbia Heights that would complement
other stores in the market area.
The objective of this engagement is to identify actions that will position Central Avenue as an
attractive location for retail and service uses.
WORK PROGRAM
The work program outlined below is designed to fulfill the above objectives. Specific work tasks
are summarized.
♦ Central Avenue Evaluation
Central Avenue and environs will be inspected to evaluate its physical characteristics,
design, relationship of uses, and physical condition. Factors to be studied include, but are
not limited to: tenant mix, location, size, access, ingress and egress, vehicular traffic
patterns, and relationship to other commercial and residential uses. in the area:
• Business Interviews
Owners or managers of retail establishments located in Columbia Heights will be
interviewed to determine where their customers come from and their impressions of the
area's retail strengths and weaknesses.
3001 Hennepin Avenue South Suite 301B Minneapolis, Minnesota 55408 • (612) 339 -7000 Fax: (612) 338 -5572
Mr. Walter R. Fehst
June 27, 2001
Page 2
• Competitive Centers Evaluation
Competitive shopping centers and retail clusters serving the market area will be inspected
and evaluated to determine competitive impacts on Columbia Heights. Principal
competitors will be identified and evaluated for tenant mix, retail GLA, and anchor
stores. Future retail developments that will affect either Columbia Heights or its retail
trade area will be identified. To the extent possible, the impact of new competitive retail
development will be identified.
• Customer Survey
Selected businesses along Central Avenue will be asked to participate in a survey of their
customers to determine where their customers live and work. This information will be
used to identify a trade area for Columbia Heights. The survey is designed to be
executed by employees of each firm as customers pay for their goods or services. The
budget assumes ten to twelve business participants.
♦ Trade Area Analysis
Based on business interviews and consumer research, the trade area for downtown
Columbia Heights will be delineated. The economy of the trade area will be analyzed to
identify and quantify those factors that generate support for retail establishments. This
analysis will include demographics of the trade area including population, households,
age distribution, income levels, employment, and other pertinent data using the latest
census information and updated estimates. Trade area population and households will be
adjusted to reflect the recently released 2000 Census data. Daytime population of the -
employment trade area will be identified by industry group and occupation, and payroll.
Retail purchasing power available within the trade area will be estimated by major
merchandise category for a ten -year period to determine future trends in retail spending.
♦ Columbia Heights Competitive Position
Information obtained from the previous task will be utilized to evaluate Columbia
Heights' competitive position and its ability to compete effectively with other shopping
areas and withstand the impact of future competitive retail developments.
♦ Retail Sales Potential
Future retail sales potential for the study area will be estimated taking into consideration
competitive impacts, _ trade ._area _demographics,__purchasing power, and recommended_
renovation and/or remerchandising of retail and service establishments. Based on
analysis of purchasing power, competitive shopping centers, and current retail trends,
future retail sales potential for the study area will be estimated by store type.
Mr. Walter R. Fehst
June 27, 2001
Page 3
♦ Redevelopment and Remerchandising Recommendations
Based on the foregoing analysis, recommendations for renovation and redevelopment
will be prepared. This task will focus on all potential uses and will include addressing
future use of other commercial parcels in the area.
The results of our work will be documented in a final report designed to meet client needs. The
report will contain appropriate graphics and explanations of our principal findings, conclusions,
and recommendations.
MEETINGS
Three meetings are planned during the course of the evaluation to keep the client informed of our
progress and findings. These meetings include the following:
♦ Start - Up Meeting will be held at the beginning of the engagement to define the study
area, finalize research objectives for the engagement and obtain client - provided
information.
♦ Work Session will be held to review trade area analysis, competitive evaluation,
customer survey results, retail sales analysis, competitive position, and preliminary
findings and recommendations.
♦ Report Meeting to discuss results of all work tasks and recommendations. This meeting
will cover all aspects of the research program.
6p/ill& Heil
The budget provides for three client meetings as described above and up to threemeetings u e z
Additional meetings will be billed at our normal hourly rates plus expenses. i 1
SCHEDULE
Work tasks described in this proposal can be completed within a three -month period. A
preliminary report will be provided at that time, a final report will be completed within ten days
following receipt of client comments on the draft report. Ten copies of the report will be
provided to the client.
ADDITIONAL SERVICES
Following completion of the above report, Columbia Heights may wish to utilize the following
services.
- ♦ - Marketing Brochure
Results of the previous research will be summarized in a marketing brochure that
highlights trade area characteristics using photographs, maps, and descriptive text. The
objective is to produce an easily readable document that relies primarily on color maps
and graphics to convey the demographic strengths to the Columbia Heights trade area.
Mr. Walter R. Fehst
June 27, 2001
Page 4
This brochure will take the reader on a visual tour of the Columbia Heights area and will
contain a map and driving route. Individual pages will feature segments of the driving
tour with color photographs of homes, parks, and other positive features key to specific
locations along the driving route. Important demographic characteristics will be
displayed in color graphics.
♦ Development Consulting
McComb Group personnel will be available to provide Columbia Heights with
development consulting, as needed. Services could include assisting with developer and
retailer solicitations and other issues related to development.
The scope and budget for these additional services can be determined following completion of
the initial work tasks.
QUALIFICATIONS AND EXPERIENCE
McComb Group, Ltd. is a full- service retail and real estate consulting firm specializing in market
research and financial feasibility. The firm has extensive experience in the retail industry and
has conducted market research for retail stores and shopping centers of all types including
regional malls, community centers and specialty centers.
McComb Group, Ltd. has a team that is qualified to conduct the research described in this
proposal. McComb Group's professional staff associated with this engagement include the
following:
• James B. McComb, President, founded the predecessor of McComb Group in 1974
following six years as a member of the corporate staff with Dayton Hudson Corporation.
His experiences at Dayton Hudson and daily association with merchants and shopping
center developers provided the impetus for McComb Group's approach to shopping
center and retail market research and financial feasibility, which includes strong elements
of design and merchandise sensitivities. The firm's approach to shopping center research
and marketing has undergone continuous development and refinement over the past 20
years.
♦ Mr. Garrett S. Trapnell, Associate, conducts demographic and consumer research, trade
area studies, and evaluates competitive developments. He also manages and is
responsible for updating the firm's databases and digital information systems. Mr.
Trapnell directs and analyzes McComb Group consumer survey engagements. This
process -includes -the - creation -of- survey instruments,- data- input, data- aggregation as well
as final cross - tabulations and output.
Mr. Trapnell holds a B.A. degree from the University of Minnesota in Geography. He is
a skilled cartographer, producing McComb Group's digital and hard copy maps. Mr.
Trapnell has planning and zoning consulting experience in the public and private sectors.
His knowledge and experience contribute to our demographic and spatial analyses using
Mr. Walter R. Fehst
June 27, 2001
Page 5
the McComb Group's national demographic database and geographic information
system.
Mr. McComb will be responsible for managing and directing the overall research program and
will participate directly in findings and conclusions. Individual work tasks will be assigned to
personnel within the firm based on qualifications and experience.
BUDGET
The professional fees for the services and expenses outlined in this proposal total $17,700 and
will be performed at a price not -to- exceed that amount. The budget is based on the amount of
time required to perform the work tasks and our normal hourly billing rates of $220 for
principals, $110 for senior associates, $90 for associates, and $65 -$85f for cor1s Rants.
�lq walk f (Y
Company policy requires a retainer of approximately ...ene-hfilf the budge: for the project or
f/24, -$8 8'00-' The retainer will be applied to the final invoice as a credit for billing of professional
services and expenses. Invoices for professional services and expenses will be rendered at mid-
" month and month -end as our work progresses.
Standard billing terms are net ten days. A finance charge of 1.5 percent will be charged on all
unpaid balances outstanding more than 30 days.
REPORT PURPOSE
This proposal was prepared with the understanding that the results of our work will be used by
the client to evaluate retail potential in the study area and may be shared with retailers,
developers, lenders and other investors. Our report will be prepared for that purpose and will be
subject to the following qualifications:
♦ Our analysis will not ascertain the legal and regulatory requirements applicable to this
project, including zoning, other state and local government regulations, permits and
licenses. No effort will be made to determine the possible effect on the proposed project
of present or future federal, state or local legislation, or any environmental or ecological
matters.
♦ Our report and analysis will be based on estimates, assumptions and other information
developed from research of the market, knowledge of the industry and discussions with
the client. Some assumptions inevitably will not materialize and unanticipated events
and circumstances may occur; therefore, actual results achieved will vary from the
analysis.
♦ Our analysis will not evaluate management's effectiveness or be responsible for future
marketing efforts and other management actions upon which actual results are dependent.
♦ Our report will be intended solely for the purpose described above and should not be used
for any other purpose without our prior written permission. Permission for other use of
the report will be granted only upon meeting company standards for the proposed use.
Mr. Walter R. Fehst
June 27, 2001
Page 6
These qualifications will be included in our final report. If the report is used for purposes other
than specified above, we reserve the right to review the materials for proper use of our work.
ACCEPTANCE PROCEDURES
To indicate acceptance of the proposal, please sign a copy of the proposal and return it to us
together with your check for the retainer as authorization to proceed with this engagement.
We appreciate the opportunity to submit this proposal and look forward to hearing from you
soon. If you have any questions concerning the proposal, please call me at (612) 339 -7000.
Accepted By: d McComb Group, Ltd.
Company: 6: / v(6/ .4
1 ,1 /
Title: 4ffkAri Pr
Jaynes B. McComb
Date: President
1 MCCOM13 GROUP Ltd.
I I•n R E E T A I L I L E REE TATE AN
E
TAIL
Revised
July 18, 2001
Mr. Walter R. Fehst, City Manager
CITY OF COLUMBIA HEIGHTS
590 40 Avenue NE
Columbia Heights, Minnesota 55421
Dear Mr. Fehst:
In response to your . request, we have prepared a work program to conduct an evaluation and
market analysis of retail areas in Columbia Heights. The focus of this analysis will be the area in
the vicinity of Central Avenue between 37 and 45"'. Avenues. Other retail uses along Central
Avenue between Fourth. Avenue and I -694 will also be evaluated to determine the scope and
character of retail establishments in the area. Objectives for this analysis include the following:
♦ Evaluate physical characteristics of Columbia Heights retail area and identify changes to
improve how the area looks and functions.
- ♦ Identify retail and service uses suitable. for Columbia Heights that would complement
other stores in the market area.
The objective of this engagement is to identify . actions that will position Central Avenue as an
attractive location for retail and service uses.
WORK PROGRAM
The work program outlined below is designed td fulfill theabove objectives. Specific work tasks
are summarized.
♦ Central Avenue Evaluation
Central Avenue and environs will be inspected to evaluate its physical characteristics,
design, relationship of uses, and physical condition. Factors to be studied include, but are
not limited to: tenant mix, location, size, access, ingress and egress, vehicular traffic
patterns, and relationship to other commercial and residential uses in the area.
• Business Interviews
Owners or managers of retail establishments located in Columbia Heights will be
interviewed to determine where their customers come from and their impressions of the
area's retail strengths and weaknesses.
3001 Hennepin Avenue South Suite 301B Minneapolis, Minnesota 55408 • (612) 339 =7000 Fax: (612) 338 -5572
Mr. Walter R. Fehst
July 18, 2001
Page 2
• Competitive Centers Evaluation
Competitive shopping centers and retail clusters serving the market area will be inspected
and evaluated to determine competitive . impacts on Columbia Heights. Principal
competitors will be identified and evaluated for tenant mix, retail GLA, and anchor
stores. Future retail developments that will affect either Columbia Heights or its retail
trade area will be identified. To the extent possible, the impact of new competitive retail
development will be identified.
• Customer Survey
Selected businesses along Central Avenue will be asked to participate in a survey of their
customers to determine where their customers live and work. This information will be
used to identify a trade area for Columbia Heights. The survey is designed to be
executed by employees of each firm as customers pay for their goods or services. The
budget assumes ten to twelve business participants,
♦ Trade Area Analysis
Based on business interviews and consumer.. research, the trade area for downtown
Columbia Heights will be delineated. The economy of the trade area will be analyzed to
identify and quantify those factors that :generate - support for retail establishments. This
analysis will include demographics of the trade area including population, households,
age distribution, income levels, employment, and other pertinent data using the latest
census information and updated estimates: Trade - area - population and - households will be - -
adjusted to reflect the recently released: 2000 Census data Daytime population of the .
employment trade area will be identified by industry :group and occupation, and. payroll.
Retail purchasing power available within the : trade area - will be estimated by major
merchandise category for a ten -year period to 'determine future trends in retail spending.
♦ Columbia Heights Competitive Position
Information obtained from 'the previous task will be utihzed to evaluate Columbia
Heights' competitive position and its ability to compete effectively with other shopping
areas and withstand the impact of future competitive retail developments.
♦ Retail Sales Potential
Future retail sales potential for the study area will be estimated taking into consideration
competitive impacts, trade area demographics, purchasing power, and recommended
renovation and/or remerchandising of retail and service establishments. . Based on
analysis of purchasing power, competitive shopping centers, and current retail trends,
future retail sales potential for the study area will be estimated by store type.
Mr. Walter R. Fehst
July 18, 2001
Page 3
♦ Redevelopment and Remerchandising Recommendations
Based on the foregoing analysis, recommendations for renovation and redevelopment
will be prepared. This task will focus on all potential uses and will include addressing
future use of other commercial parcels in the area
The results of our work will be documented in a final report designed to meet client needs. The
report will contain appropriate graphics and explanations of our principal findings, conclusions,
and recommendations.
MEETINGS
Three meetings are planned during the course of the evaluation to keep the client informed of our
progress and findings. These meetings include the following;
♦ Start - Up Meeting will be held at the beginning of the engagement to define the study
area, finalize research objectives for the engagement and obtain client - provided
information.
♦ Work Session will be held to review trade - area _analysis, competitive evaluation,
customer survey results, retail sales analysis, competitive position, and preliminary
findings and recommendations.
♦ Report Meeting to discuss results of all work tasks and recommendations. This meeting
will cover all aspects of the research program.
The budget provides for three client meetings as described above and up to three additional
meetings without .charge. Additional meetings will be billed at our normal hourly rates plus
expenses:
SCHEDULE
Work tasks described in this . proposal can be completed within a three -month period. A
preliminary report will be provided at that time, a final report will be completed within ten days
following receipt of client comments on the draft report. Ten copies of the report will : be
provided to the client.
ADDITIONAL SERVICES
Following .completion of the above report, Columbia Heights may wish to utilize the following
services.
♦ Marketing Brochure
Results of the : previous research will be summarized in a_ marketing brochure that
highlights trade area characteristics using photographs, maps, and descriptive text. The
objective is to produce an easily readable document that relies primarily on color maps
and graphics to convey the demographic strengths to the Columbia Heights trade area.
Mr. Walter R. Fehst
July 18, 2001
Page 4
This brochure will take the reader on a visual tour of the Columbia Heights area and will
contain a map and driving route. Individual pages will feature segments of the driving
tour with color photographs of homes, parks, and other positive features key to specific
locations along the driving route. - Important demographic characteristics will be
displayed in color graphics.
♦ Development Consulting = :
•
McComb Group personnel will be available to provide Columbia Heights with
development consulting, as needed. Services could include assisting with developer and
retailer solicitations and other issues related to development.
The scope and budget for these additional services can be determined following completion of
the initial work tasks:
QUALIFICATIONS AND EXPERIENCE
McComb Group, Ltd.. is a full- service retail and real estate consulting firm specializing in market
research and financial feasibility.. The firm has extensive experience in the retail industry and
has conducted market research for retail stores and - shopping_ centers of all types including
regional malls, community centers and specialty centers
McComb Group, Ltd. has a team that is qualified to conduct the research described in this
proposal. McComb Group's professional staff associated with this engagement include the
following:
• James B. McComb, President, founded_ the predecessor of - McComb Group in 1974
following six years as a member of the corporate staff with Dayton Hudson Corporation.
His experiences at Dayton. Hudson and daily association with merchants and shopping
center developers provided the impetus= for McComb Group's : approach to shopping
center and retail market research and :financial° feasibility, which includes strong elements
of design and merchandise sensitivities. The firm's approach to shopping center research
and. marketing has undergone continuous development and refinement over the past 20
years.
♦ Mr. Garrett S. Trapnell, Associate, conducts demographic and consumer research, trade
area studies, and evaluates competitive developments.. He also manages and is
responsible for updating the firm' s databases and digital information systems. Mr.
Trapnell directs and analyzes McComb Group consumer survey engagements. This
process includes the creation of survey instruments, data input, data aggregation as well
as final cross- tabulations and output.
Mr. Trapnell holds a B.A. degree from the University of Minnesota in Geography.: He is
a skilled cartographer, producing McComb Group's digital and hard copy maps. Mr.
Trapnell has planning and zoning consulting experience in the public and private sectors.
Mr. Walter R Fehst
July 18,2001
Page 5
His knowledge and experience contribute to our demographic and spatial analyses using
the McComb Group's national demographic database . and geographic information
system.
Mr.. McComb will be responsible for managing and directing the overall research .program and
will participate directly in findings and conclusions. Individual work tasks will be assigned to
personnel within the firm based on qualifications and experience.
BUDGET
The professional fees for the services and expenses outlined-in: this proposal total $17,700 and
will be performed at a price not -to- exceed that amount. The .budget is based on the arnount of
time required to perform the work tasks and ' our normal. hourly billing rates of $220 for
principals, $110 for senior associates, $90 for associates, and $65 -$85 for consultants.
Company policy requires a retainer of approximately one-quarter the budget for the project. or
$4,400. The retainer will be applied to the final invoice as a credit for billing of professional
services and expenses.. Invoices for professional services and expenses will be rendered' at mid
month and month -end' as our work progresses
. Standard billing terms are net ten days. A finance charge. of 1.5 percent will be charged on all
unpaid balances outstanding more than 30 days:
REPORT PURPOSE. •
This proposal was prepared with the understanding that the results:of our work will be used by
the client to evaluate retail potential in the study - area:- and may be shared with retailers,
developers, lenders and other investors: Our report will be_ for that purpose and will be
subject to the following qualifications:
♦ Our analysis will not ascertain the legal: and- regulatory requirements applicable to this
project, including zoning; other state an d local. ,government 'regulations, permits . and
licenses. No effort will be made to determine the possible: effect on the proposed project
of present or future federal, state or- local:, legislation,. or any: environmental or ecological
matters.
Our report and analysis will be based on estimates, assumptions and other information
developed from research of the market, knowledge of the industry and discussions with
the client Some assumptions inevitably will not materialize and unanticipated events
and circumstances may occur; therefore, actual results - achieved will vary . from the
analysis. . .
♦. Our analysis will not evaluate management's effectiveness or be responsible for future
marketing efforts and other management actions upon which actual results are dependent.
♦ Our report will be intended solely for the purpose described above and should not be used
for any other purpose without our prior written permission.. Permission for other use of
the report will be granted only upon meeting company standards for the proposed use.
Mr. Walter R. Fehst
July 18, 2001
Page 6.
These qualifications will be included in our final report. `° If the report is used for purposes other
than specified above, we reserve the right to review the materials for proper use of our work.
ACCEPTANCE PROCEDURES
To indicate acceptance . of the proposal, please sign a copy of the proposal and return it to us
together with . your check for the retainer as authorization to proceed with this engagement.
We appreciate . the opportunity to submit this proposal and look forward to hearing from you
soon. If you have any questions concerning the proposal; please call me at (612) 339 -7000.
Accepted By: City of Columbia - ig s McComb Group, Ltd.
Mayor
Date: '7 -3 / Ag e
d r James. B, - McComb,
President
City Manager
Date: 7