Action Requested: APPROVAL TO Enter into a contract with thE ECONOMIC DEVELOPMENT council and other regional partners for A REGIONAL RETAIL STUDY with a total contract amount of $51,855 for all regional partners and approximately $8,700 for the City of Peoria portion; and authorization for the city manager to execute the necessary documents.
Background: The Economic Development Council will be contracting with TESKA and Associates to conduct a regional retail study for the Peoria area including East Peoria, Morton, Pekin, Washington, Bartonville and, if approved by Council, the City of Peoria. This study would be of great assistance to our City as we strive to attract and retain retail development in specified areas of the City. Partnering with EDC and the other communities is an opportunity to have this quality retail study conducted at a very reasonable price and to have a customized marketing package to distribute to potential retailers identified through the study.
Nine sites are proposed for study at the total cost of $51,855. The cost would be approximately $5,800 per site if all the cities involved approve their study. The cost per site would be adjusted according to the number of communities participating. Staff would like to include the City of Peoria in this study and has identified the following areas to be considered:
1. Downtown to River Front
2. Rt. 6 – Knoxville
3. West Lake Shopping Center area
4. University and Sheridan area between Glen and Forrest Hill
These four sites would bring the City’s portion of the contract to approximately $23,200. In an effort to reduce the City’s costs on this study staff have identified private individuals interested in paying for the study to be conducted at 2 of the above sites and another individual who has agreed to pay for ½ of the cost of the study at one of the sites. Instead of paying the total cost for these 4 studies, the City’s cost would be approximately $8,700. These funds are available in the 2009 Economic Development budget.
The EDGE Retail Strategy Group solicited proposals through an RFP process and the responses were narrowed down to three companies. TESKA was selected through a presentation process to the Edge group.
The study will include a detailed report for each specific site. The report will provide:
· Detailed information regarding retail potential for the targeted development/redevelopment site
· Leakage analyses
· Customer profiles
· Recommendations of specific retailers that meet local customer demand
· Custom marketing packages for 20 targeted retailers
Financial Impact: This study would assist to City staff in efforts to attract and retain retail development. The successful attraction of retail development is an important component in increasing the City’s tax base.
Basic market research and demographic information assists developers to locate new business. New jobs will be created through the opening of these new establishments as well as jobs from the construction industry as the sites get remodeled or built from the ground up.
NEIGHBORHOOD CONCERNS: N/A
Impact if Approved: The City will enter into a contract with EDC for this retail study.
Impact if Denied:
EEO Certification Number: N/A
RELATIONSHIP TO THE COMPREHENSIVE PLAN: This proposed expansion assists in achieving both the vision and goals of the Comprehensive Plan as follows: Chapter 5
ECONOMICS--VISION: A HEALTHY, THRIVING ECONOMY; and GOAL: A.1. Create a favorable business climate. A1.1. Continue to identify financial incentives to attract and retain businesses.
Craig Hullinger, ED Director