07-181 Resolution No. 07-181
RESOLUTION
AUTHORIZING EXECUTION OF AN AGREEMENT WITH
41NSIGHTS, INC. FOR PROFESSIONAL SERVICES REGARDING THE CITY'S
STUDY OF A COMPREHENSIVE RETAIL PLAN
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,ILLINOIS,that
Olufemi Folarin,City Manager, and Diane Robertson, City Clerk,be and are hereby authorized and
directed to execute an agreement on behalf of the City of Elgin with 41nsights,Inc. for professional
services regarding the city's study of a comprehensive retail plan, a copy of which is attached hereto
and made a part hereof by reference.
s/Ed Schock
Ed Schock, Mayor
Presented: July 11, 2007
Adopted: July 11, 2007
Omnibus Vote: Yeas: 6 Nays: 0
Attest:
s/Diane Robertson
Diane Robertson, City Clerk
AGREEMENT
THIS AGREEMENT is made and entered into this ay of ti Vrerred, 2007, by and between
the CITY OF ELGIN, an Illinois municipal corporation (hereinafter to as "CITY") and
41NSIGHTS, INC., a corporation organized and existing under the laws of the State of Illinois,
(hereinafter referred to as the "CONSULTANT").
WHEREAS,the CITY desires to engage the CONSULTANT to furnish certain professional services
in conjunction with the City's study of a comprehensive retail plan,with such services to consist of
the preparation of a market analysis and retail strategy for downtown development (hereinafter
referred to as the "PROJECT"); and
WHEREAS,the CONSULTANT represents it has the necessary expertise and experience to furnish
such services upon the terms and conditions set forth herein below.
NOW,THEREFORE,it is hereby agreed by and between the CITY and the CONSULTANT that the
CITY does hereby retain the CONSULTANT for and in consideration of the mutual promises and
covenants contained herein, the sufficiency of which is hereby acknowledged, to act for and
represent it in the matters involved in the PROJECT as described in this Agreement, subject to the
following terms and conditions and stipulations, to-wit:
1. SCOPE OF SERVICES
A. All work hereunder shall be performed under the direction of the City's Director of
Economic Development and Business Services (hereinafter referred to as the
"SUPERVISOR").
B. CONSULTANT shall provide the services for the PROJECT as outlined in the
CONSULTANT'S Scope of Services document entitled "Market Analysis &Retail
Strategy for Downtown Development", dated February 13, 2007, consisting of two
pages, a copy of which is attached hereto and made a part hereof as Exhibit 1. In the
event of any conflict between the terms of this Agreement and the terms contained
within Exhibit 1, the terms of this Agreement shall control.
2. SCHEDULE
The CONSULTANT shall provide the services for the PROJECT according to the schedule
as set forth in Exhibit 1.
3. WORK PRODUCTS
All work products prepared by the CONSULTANT pursuant hereto including, but not
limited to,reports, surveys, designs, calculations,work drawings,plans, design documents,
probable construction costs, floor plans, elevations and sections, renderings, studies,
photographs, models and recommendations shall be the property of the CITY and shall be
delivered to the CITY upon request of the SUPERVISOR provided, however, that the
CONSULTANT may retain copies of such work products for its records. Such work
products are not intended or represented to be suitable for reuse by the CITY on any
extension to the PROJECT or on any other project, and such reuse shall be at the sole risk of
the CITY without liability or legal exposure to the CONSULTANT.
4. PAYMENTS TO THE CONSULTANT
A. For services provided by the CONSULTANT pursuant to this Agreement the
CONSULTANT shall be reimbursed by the CITY a total maximum fee for such
services not to exceed$34,300 in total for all tasks combined regardless of the actual
costs and expenses incurred by the CONSULTANT.
B. All payment and fees paid to the CONSULTANT shall be made pursuant to the fee
rates provided for in Exhibit 1;provided,however,that in no event shall the CITY be
obligated to CONSULTANT for any payment which exceeds the aforementioned
total maximum fee provided for by paragraph 4A.
C. The CITY shall make periodic payments to the CONSULTANT based upon actual
progress within 30 days after receipt and approval of invoice. Full payment for each
task shall not be made until the task is completed and accepted by the
SUPERVISOR.
D. Additional services and expenses by the CONSULTANT beyond the scope of work
of this agreement, if any, shall require prior written approval of the City Council by
way of written amendment to this agreement or by way of a separate written
agreement.
5. INVOICES
A. The CONSULTANT shall submit invoices in a format approved by the CITY.
B. The CONSULTANT shall maintain records showing actual time devoted and cost
incurred. The CONSULTANT shall permit the authorized representative of the
CITY to inspect and audit all data and records of the CONSULTANT for work done
under this Agreement. The CONSULTANT shall make these records available at
reasonable times during the Agreement period, and for a year after termination of this
Agreement.
6. TERMINATION OF AGREEMENT
Notwithstanding any other provision hereof,the CITY may terminate this Agreement at any
time upon fifteen(15)days prior written notice to the CONSULTANT. In the event that this
Agreement is so terminated, the CONSULTANT shall be paid for services actually
performed and reimbursable expenses actually incurred prior to termination, except that
reimbursement shall not exceed the amounts set forth under Paragraph 4 above.
7. TERM
This Agreement shall become effective as of the date the CONSULTANT are given a notice
to proceed and, unless terminated for cause or pursuant to Article 5, shall be deemed
concluded on the date the CITY determines that all of the CONSULTANT'S work under this
agreement is completed. A determination of completion shall not constitute a waiver of any
rights or claims which the CITY may have or thereafter acquire with respect to any term or
provision of the Agreement.
8. NOTICE OF CLAIM
If the CONSULTANT wishes to make a claim for additional compensation as a result of
action taken by the CITY, the CONSULTANT shall give written notice of his claim within
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15 days after occurrence of such action. No claim for additional compensation shall be valid
unless so made. Any changes in the CONSULTANT'S fee shall be valid only to the extent
that such changes are included in writing signed by the CITY and the CONSULTANT.
Regardless of the decision of the SUPERVISOR relative to a claim submitted by the
CONSULTANT, all work required under this Agreement as determined by the
SUPERVISOR shall proceed without interruption.
9. BREACH OF CONTRACT
If either party violates or breaches any term of this Agreement, such violation or breach shall
be deemed to constitute a default, and the other party has the right to seek such
administrative, contractual or legal remedies as may be suitable to the violation or breach;
and, in addition, if either party, by reason of any default, fails within fifteen (15) days after
notice thereof by the other party to comply with the conditions of the Agreement, the other
party may terminate this Agreement.
10. INDEMNIFICATION
To the fullest extent permitted by law,CONSULTANT agrees to and shall indemnify,defend
and hold harmless the CITY, its officers, employees, agents, boards and commissions from
and against any and all claims, suits, judgments, costs, attorneys fees, damages or other
relief, including but not limited to workers compensation claims, in any way resulting from
or arising out of negligent actions or omissions of the CONSULTANT in connection
herewith, including negligence or omissions of employees or agents of the CONSULTANT
arising out of the performance of this Agreement. In the event of any action against the
CITY,its officers,employees,agents,boards or commissions,covered by the foregoing duty
to indemnify,defend and hold harmless such action shall be defended by legal counsel of the
CITY'S choosing. The provisions of this paragraph shall survive any completion,expiration
and/or termination of this agreement.
11. NO PERSONAL LIABILITY
No official, SUPERVISOR, officer, agent or employee of the CITY shall be charged
personally or held contractually liable under any term or provision of this Agreement or
because of their execution, approval or attempted execution of this Agreement.
12. INSURANCE
A. Comprehensive Liability. The CONSULTANT shall provide,pay for and maintain
in effect, during the term of this Agreement, a policy of comprehensive general
liability insurance with limits of at least $1,000,000 aggregate for bodily injury and
$1,000,000 aggregate for property damage.
The CONSULTANT shall deliver to the SUPERVISOR a Certification of Insurance
naming the CITY as additional insured. The policy shall not be modified or
terminated without thirty(30) days prior written notice to the SUPERVISOR.
The Certificate of Insurance which shall include Contractual obligation assumed by
the CONSULTANT under Article 10 entitled "Indemnification" shall be provided.
This insurance shall apply as primary insurance with respect to any other insurance or
self-insurance programs afforded to the CITY. There shall be no endorsement or
modification of this insurance to make it excess over other available insurance,
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alternatively, if the insurance states that it is excess or prorated, it shall be endorsed
to be primary with respect to the CITY.
B. Comprehensive Automobile Liability. Comprehensive Automobile Liability
Insurance covering all owned,non-owned and hired motor vehicles with limits of not
less than $500,000 per occurrence for damage to property.
C. Combined Single Limit Policy. The requirements for insurance coverage for the
general liability and auto exposures may be met with a combined single limit of
$1,000,000 per occurrence subject to a S1,000,000 aggregate.
D. Professional Liability. The CONSULTANT shall carry Professional Liability
Insurance Covering claims resulting from error, omissions or negligent acts with a
combined single limit of not less than $1,000,000 per occurrence. A Certificate of
Insurance shall be submitted to the SUPERVISOR as evidence of insurance
protection. The policy shall not be modified or terminated without thirty(30) days
prior written notice to the SUPERVISOR.
13. NONDISCRIMINATION
In all hiring or employment made possible or resulting from this Agreement,there shall be no
discrimination against any employee or applicant for employment because of sex, age,race,
color,creed,national origin,marital status,of the presence of any sensory,mental or physical
handicap, unless based upon a bona fide occupational qualification, and this requirement
shall apply to, but not be limited to, the following: employment advertising, layoff or
termination,rates of pay or other forms of compensation and selection for training,including
apprenticeship.
No person shall be denied or subjected to discrimination in receipt of the benefit of any
services or activities made possible by or resulting from this Agreement on the grounds of
sex, race, color, creed, national origin, age except minimum age and retirement provisions,
marital status or the presence of any sensory,mental or physical handicap. Any violation of
this provision shall be considered a violation of a material provision of this Agreement and
shall be grounds for cancellation, termination or suspension, in whole or in part, of the
Agreement by the CITY.
14. ASSIGNMENT AND SUCCESSORS
This Agreement and each and every portion thereof shall be binding upon the successors and
the assigns of the parties hereto; provided, however, that no assignment shall be made
without the prior written consent of the CITY.
15. DELEGATIONS AND SUBCONTRACTORS
Any assignment,delegation or subcontracting shall be subject to all the terms,conditions and
other provisions of this Agreement and the CONSULTANT shall remain liable to the CITY
with respect to each and every item, condition and other provision hereof to the same extent
that the CONSULTANT would have been obligated if it had done the work itself and no
assignment, delegation or subcontract had been made. Any proposed subcontractor shall
require the CITY'S advanced written approval.
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16. NO CO-PARTNERSHIP OR AGENCY
This agreement shall not be construed so as to create a partnership, joint venture,
employment or other agency relationship between the parties hereto.
17. SEVERABILITY
The parties intend and agreed that, if any paragraph, sub-paragraph, phrase, clause or other
provision of this Agreement, or any portion thereof, shall be held to be void or otherwise
unenforceable, all other portions of this Agreement shall remain in full force and effect.
18. HEADINGS
The headings of the several paragraphs of this Agreement are inserted only as a matter of
convenience and for reference and in no way are they intended to define,limit or describe the
scope of intent of any provision of this Agreement, nor shall they be construed to affect in
any manner the terms and provisions hereof or the interpretation or construction thereof
19. MODIFICATION OR AMENDMENT
This Agreement and its attachments constitutes the entire Agreement of the parties on the
subject matter hereof and may not be changed, modified, discharged or extended except by
written amendment duly executed by the parties. Each party agrees that no representations or
warranties shall be binding upon the other party unless expressed in writing herein or in a
duly executed amendment hereof, or change order as herein provided.
20. APPLICABLE LAW
This Agreement shall be deemed to have been made in, and shall be construed in accordance
with the laws of the State of Illinois. Venue for the resolution of any disputes or the
enforcement of any rights pursuant to this agreement shall be in the Circuit Court of Kane
County, Illinois.
21. NEWS RELEASES
The CONSULTANT may not issue any news releases without prior approval from the
SUPERVISOR, nor will the CONSULTANT make public proposals developed under this
Agreement without prior written approval from the SUPERVISOR prior to said
documentation becoming matters of public record.
22. COOPERATION WITH OTHER CONSULTANT
The CONSULTANT shall cooperate with any other CONSULTANT in the CITY'S employ
or any work associated with the PROJECT.
23. INTERFERENCE WITH PUBLIC CONTRACTING
The CONSULTANT certifies hereby that it is not barred from bidding on this contract as a
result of a violation of 720 ILCS 5/33E et seq. or any similar state or federal statute regarding
bid rigging.
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24. SEXUAL HARASSMENT
As a condition of this contract, the CONSULTANT shall have written sexual harassment
policies that include, at a minimum, the following information:
A. the illegality of sexual harassment;
B. the definition of sexual harassment under state law;
C. a description of sexual harassment, utilizing examples;
D. the vendor's internal complaint process including penalties;
E. the legal recourse,investigative and complaint process available through the Illinois
Department of Human Rights, and the Illinois Human Rights Commission;
F. directions on how to contact the department and commission;
G. protection against retaliation as provided by Section 6-101 of the Human Rights Act.
A copy of the policies must be provided to the Department of Human Rights upon request
775 IL,CS 5/2-105.
25. COMPLIANCE WITH LAWS
Notwithstanding any other provision of this Agreement it is expressly agreed and understood
that in connection with the performance of this Agreement that the CONSULTANT shall
comply with all applicable Federal, State, City and other requirements of law,including,but
not limited to, any applicable requirements regarding prevailing wages, minimum wage,
workplace safety and legal status of employees. CONSULTANT shall also at its expense
secure all permits and licenses, pay all charges and fees and give all notices necessary and
incident to the due and lawful prosecution of the work, and/or the products and/or services to
be provided for in this Agreement.
26. WRITTEN COMMUNICATIONS
All recommendations and other communications by the CONSULTANT to the
SUPERVISOR and to other participants which may affect cost or time of completion shall be
made or confirmed in writing. The SUPERVISOR may also require other recommendations
and communications by the CONSULTANT be made or confirmed in writing.
27. NOTICES
All notices, reports and documents required under this Agreement shall be in writing and
shall be mailed by First Class Mail, postage prepaid, addressed as follows:
A. As to CITY:
Raymond H. Moller, Director of Economic Development and Business Services
City of Elgin
150 Dexter Court
Elgin, Illinois 60120-5555
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With a copy to:
William A. Cogley, Corporation Counsel
City of Elgin
150 Dexter Court
Elgin, Illinois 60120-5555
B. As to CONSULTANT:
Ms. Carol Gies
4Insights
6450 College Road, #304
Lisle, Illinois 60540
IN WITNESS WHEREOF,the undersigned have placed their hands and seals upon and executed this
Agreement in triplicate as though each copy hereof was an original and that there are no other oral
agreements that have not been reduced to writing in this statement.
FOR THE CITY: FOR THE CONSULTANT:
41NSIG S, INC.
By: By:
anager Carol Gies
Attest:
City Clerk
FALeeal Dept\Agreement\41nsights-Retail Plan Study.doc
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I
EXHIBIT 1
SCOPE OF SERVICES AND PROJECT SCHEDULE
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City of Elgin Agenda Item No.
D
June 8, 2007 r. :
TO: Mayor and Members of the City Council
FROM: Olufemi Folarin, City Manager
Raymond H. Moller, Director o Economic Development and Business Services
SUBJECT: Award of Phase I and part of Phase I1 of the Comprehensive Retail Plan for the
City of Elgin
PURPOSE
The purpose of this memorandum is to provide information to the Mayor and Members of the
City Council in order to award Phase I and part of Phase 11 of the Comprehensive Retail Plan for
the City of Elgin.
RECOMMENDATION
It is recommended that the City Council authorize the execution of a Professional Service
Agreement with Melaniphy and Associates, Inc in the amount of$94,500 for Phase I of the city's
comprehensive retail analysis, and a Professional Service Agreement with 4 Insights in the
amount of$34,300 for preliminary assessment in the Center City area for Phase II of the city's
comprehensive retail analysis.
BACKGROUND
A request for qualifications (RFQ) for a Comprehensive Retail Plan was issued on September 1,
2006. Responses to the City were due on October 15, 2006. Seven firms responded to the RFQ.
1. The Chesapeake Croup
2. The Buxton Company
3. Economic Research Associates
4. Talbot Consultants
5. 4 Insights
6. Urban Marketing Collaboration
7. Melaniphy&Associates
The RFP prioritized five retail study area phases, with the City reserving the right to award each
component to different consultants, based on their expertise and specialty. A staff committee
including Cherie Murphy, Rich Kozal, Sean Stegall and Ray Moller reviewed the submittals and
selected the following three firms for formal presentations to the review committee: Urban
Award of Phase I of the Comprehensive Retail Plan for the City of Elgin
June 8, 2007
Page 2
Marketing Collaboration, 4 Insights and Melaniphy & Associates. At the conclusion of the
interview process, staff recommended that the Phase I element of the Retail Plan be awarded to
Melaniphy & Associates and that preliminary assessment of the Center City be awarded to 4
Insights, Inc.
The five phases of the retail study are as follows:
Phase I:
Wing Park Shopping Center
Otter Creek Shopping Center
Valley Creek Shopping Center
Big Timber and Randall Road Intersection
Randall at I-90
Randall and Route 72
Phase II:
Downtown Center City Area
Route 31 Corridor
Phase III:
Tyler Creek Shopping Center
Route 20 and Nesler Road
Town & Country Shopping Center
Phase IV:
Route 25 Corridor/Congdon
Route 25 and I90
Summit Street Corridor
Phase V:
Route 47 Growth Area
Yenerich Farm
The areas included in Phase I were selected because of the level of interest and activity taking
place at the sites or the need to address declining trends in activity at specific sites. The Center
City area portion of Phase II was determined to be of significant importance for preliminary
assessment and analysis due to the unique nature of the current downtown development.
Award of Phase I of the Comprehensive Retail Plan for the City of Elgin
June 8, 2007
Page 3
Phase I
The Melaniphy proposal addresses the primary objectives of a retail study. The first is to
determine the shopping patterns, habits, and preferences of Elgin residents to be used in all of the
retail study phases. The second objective is to identify specific retail opportunities for the Phase
I locations and sites listed above. Through definitive market analysis, Melaniphy will determine
current and future opportunities, consider individual retailer's own market development
strategies, and what is the best development program for the City of Elgin.
From this program, the City will be able to:
1. Clearly see Elgin resident's shopping habits, patterns, and retail store and shopping center
preferences. It will serve as a benchmark for present and future retail development. The
program will provide resident's existing retail shopping patterns as opposed to current rumor
and unfounded opinion.
2. Make decisions based upon the recommended square footages, types and sizes of
recommended users, and sales tax benefits from individual redevelopment sites.
3. Efficiently match stores to market demand for new or expanded businesses.
4. Proactively recruit the best store mix to ensure the highest retail, foodservice, and service
sales.
5. Develop a strong and sound retail development or redevelopment plan for current and future
sites.
A telephone survey of at least 500 Elgin residents will be conducted regarding their existing
shopping patterns, store preferences; bug box stores shopped regularly, malls visited, frequency
of visits to boxes vs. malls, and what stores they would like to see in Elgin. This will provide a
factual benchmark of patterns, habits, and resident preferences for all phases of the study. It will
be invaluable to the study of the sites and any proposed improvements.
For each of the six locations identified within Phase 1, Melaniphy and Associates will conduct
the following activities.
1. Elgin's Area Retail Trends
2. Elgin's Retail Sales for the past 10 years
3. Trade area definition
4. Retail market analysis for each location
5. Retail strategies and market points
Award of Phase I of the Comprehensive Retail Plan for the City of Elgin
June 8, 2007
Page 4
Melaniphy and Associates will prepare two reports.
1. A report for the Elgin Resident Shopping Patterns and Preferences Study.
2. Melaniphy will prepare the Elgin Phase I Retail Analysis report addressing each of the
six locations and the 10 individual sites in Phase 1. Each location will be addressed
in a separate section of the report, along with the individual sites at the location.
It is expected that it will take 90 to 120 days to complete both the Elgin Residents Shopping
Survey and the study of the six locations and 10 sites.
Fees for each major part of the study are indicated below:
Elgin Resident Shopping Pattern, Habits, and Preferences Study $26,500
Phase 1 —Retail Market Study for the six locations and 10 sites $68,000
Total of all activities $94,500
Center City Assessment
4 Insights offers expertise in working with communities such as Naperville and Highland Park in
conducting individualized strategic retail planning and marketing for historic downtowns.
Because Elgin's downtown residential developments are not yet established, 4 Insights proposes
to conduct only preliminary research and assessment of existing conditions in order to support
current retail recruitment and establish future goals and objectives for downtown retail.
This first effort will provide the basis for the ultimate completion of the Retail Strategic Planning
Process, which would involve creating a market identity or "brand" for the downtown that will
distinguish Elgin from its competitors. After completion of the first phase study, 4Insights will
submit a separate proposal for completion of the second phase study, upon the request of the City
of Elgin.
From this preliminary first phase research, the City will be able to:
1. Articulate a clear vision statement from the community for downtown retail and its
expected contributions to downtown development.
2. Define the current general site conditions and estimate future conditions for retail
development in the defined study area.
3. Designate the specific sites and/or areas for the focus of the study.
Award of Phase I of the Comprehensive Retail Plan for the City of Elgin
June 8, 2007
Page 5
4. Offer general planning recommendations from a retail perspective for the targeted
sites.
5. Identify current marketing challenges and opportunities within the downtown area
4 Insights will conduct and report this research in two steps:
1. Vision, Needs and Issues Assessment
2. Current Conditions Assessment
It is expected that this research will begin in September 2007 and be completed in November of
2007.
4Insights
Total Fee Phase I Services $341300
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
None
NANCIAL IMPACT
The cost of the services proposed by Melaniphy and Associates is $94,500, and the cost of
services from 4Insights is $34,300, for a total of$128,800. A total of$128,800 is budgeted and
available in the Riverboat Lease Fund, "Economic Development Incentives" account number
276-0000-791.80-27 project number 17711E, Comprehensive Retail Plan for this project.
VW,//L1GAL I1IIPACT
Agreements will be required.
Award of Phase I of the Comprehensive Retail Plan for the City of Elgin
June 8, 2007
Page 6
ALTERNATIVES
1. The City Council may choose to award Phase I of the Comprehensive Retail Plan
analysis to Melaniphy and Associates in the amount of $94,500 and a preliminary
assessment of the Center City retail conditions to 4Insights in the amount of$34,300.
2. The City Council may choose not to award the contract as proposed.
Respectfully submitted for Council consideration.
RHMIjr
Attachments
AliI N S I G H T S
`, IESEAECH•BUSINESS SIBAIEOY•A/AIMIN0
February 13, 2007
PROPOSAL
TO: City of Elgin, Illinois
FR: 41nsights, Inc.
RE: Market Analysis and Retail Strategy for Downtown Development
41nsights, Inc. Is pleased to submit the following proposal for professional services to support future retail'
planning for Downtown Elgin. The following proposal is very brief, so please feel free to call for clarification.
The services included in this proposal cover the first Phase of the Retail Strategic Planning Process,as
outlined in the Retail Comprehensive Planning Model, previously submitted for your review. Phase Two
Services will be submitted in a separate proposal,as requested.
PHASE ONE SERVICES: ASSESSMENT
Task 1. Vision,Needs,and Issues Assessment
• Review the Elgin Master Plan, specifically for the Downtown retail vision and priority
objectives
• Interview Community, business, and non-profit leadership to assess needs and issues
pertaining to retail development Downtown
• Conduct resident opinion research to identify Community wants,fears and issues on the
same topic
• Identify Community heritage,culture, and values that must be considered and reflected in
Downtown retail,
Deliverable: Articulate a clear vision statement from the Community for Downtown retail and its expected
contributions to Downtown development.
Task 2. Current Conditions Assessment
Working with the City Planning team...
• Define the parameters of the Downtown Study Area
• Review and define City current policies and plans that may affect retail development in the
Study Area,e.g. zoning,ordinances;architectural and other guidelines; parking,access
and traffic flow
• Review the physical characteristics of the Study area from a retail perspective, e.g.
visibility,pedestrian connectivity,etc.
o Review major planned developments that may affect retail.strategy, both residential,
commercial,major employer, and public uses.
• Conduct a retail audit of current spaces in the designated Study Area and classify
according to retail use, to identify gaps in the retail mix.
Deliverables: Define the current general site conditions and estimate future conditions for retail
development in the defined Study area. Designate the specific sites and/or areas for the
focus of the Study.Offer general planning recommendations from a retail perspective for
the targeted sites.
* NOTE:The term "retail'includes merchandise,foodservice and commercial personal/business services
establishments.
6450 College Road #304 Lisle,Illinois 60532-3290
(630)983-3024 (630)768-6144 www.41nsights.com
Elgin,02/13107,Page 2 of 2
PHASE TWO SERVICES: CUSTOMER BASES,COMPETITION,AND TARGET TENANT PLAN
Following the completion of the Assessment Phase,41nsights, Inc. would be pleased to submit a separate
proposal to proceed to Tasks 3,4 and 5 in the Retail Strategic Planning Process:
#3. Identify, rank and locate the highest potential customer bases for Downtown Retail
#4. Analyze the competition and find the strongest market positioning for Downtown's future retail
offering for the customer bases targeted
#5. Develop a specific Target Tenant Plan suitable for leasing direction for the Study Area.
TIMELINE AND BUDGET FOR PHASE ONE ASSESSMENT:
41nsights can begin the services outlined in early to mid-May of 2007, and we anticipate completion in 6-8
weeks.
41nsights proposes to complete the deliverables outlined in Task 1 and 2 for a professional services fee of
$34,300,plus out of pocket expenses.
The most cost-effective survey methodologies will be determined with the City,if needed, at the appropriate
time in the Study. 41nsights'professional service fees for all primary research are included in the$34,300.
fee. Out-of-pocket expenses would be primarily for survey mailing,tabulating, and/or other survey
distribution methods,as determined with The City to be most cost-effective.
Minimal syndicated data purchases will be required for the Assessment Phase. If needed, they will be billed
at our cost,which is at our discounted licensee rate, and with no additional mark-up.
PAYMENT TERMS AND ACCEPTANCE:
Your signature below will indicate your acceptance of this proposal. Upon receipt of a 50%deposit
($17,150.)we will confirm the project schedule and submit a work plan with a date-specific timeline. The
balance of the fee($17,150.)plus out of pocket expenses are due upon final report delivery. Please
understand that we continue to schedule projects until receipt of the signed agreement letter and deposit,
therefore,the project start time quoted above may be adjusted.
We very much appreciate the opportunity to offer our services, as we are extremely positive about the retail
potential of Downtown Elgin--and we also have the highest respect and regard for your professional team.
IQ-it QP1y,,OF ELGIN 41N T , INC.
(Name)
(Title)
(Date)
6450 College Road #304 Lisle,Illinois 60532-3290
(630)983-3024 (630)768-6144 www.4insights.com
Ray Moller- RE: Hourly Rate Schedule for Retail Plan Page 1
From: "41nsights" <41nsights @comcast.net>
To: "'Ray Moller"' <moller-r @cityofelgin.org>
Date: 6/25/2007 3:58 pm
Subject: RE: Hourly Rate Schedule for Retail Plan
Hello Ray--Our hourly rate schedule is:
Carol Gies $175
Linda Reynolds $150
Linda Peck $ 50
Suzanne Fogel: Survey tabulation--cost is determined per survey project. I
hope this is what you need, Carol
-----Original Message-----
From: Ray Moller [mailto:moller_r @cityofelgin.org]
Sent: Monday, June 25, 2007 9:58 AM
To: Carol Gies
Subject: Hourly Rate Schedule for Retail Plan
Would you please send an hourly rate schedule for the various participants
of your team that will be involved with the Center City Retail Plan. I need
the information as a attachment for the development agreement. Thank you.
Ray
Raymond H. Moller
Director of Economic Development
City of Elgin
ph. 847-931-6749
cell 847-344-0847
fax 847-931-5610
Agenda Item No.
City of Elgin g
June 8, 2007 r I\TORTHV✓EST
TO: Mayor and Members of the City Council
r;rrrnrir Grr;r=J;and
FROM: Olufemi Folarin, City Manager D'11!miifrtd rx Base
Raymond H. Moller, Director o Economic Development and Business Services
SUBJECT: Award of Phase I and part of Phase II of the Comprehensive Retail Plan for the
City of Elgin
PURPOSE
The purpose of this memorandum is to provide information to the Mayor and Members of the
City Council in order to award Phase I and part of Phase II of the Comprehensive Retail Plan for
the City of Elgin.
RECOMMENDATION
�. It is recommended that the City Council authorize the execution of a Professional Service
Agreement with Melaniphy and Associates, Inc in the amount of$94,500 for Phase I of the city's
comprehensive retail analysis,. and a Professional Service Agreement with 4 Insights in the
amount of$34,300 for preliminary assessment in the Center City area for Phase II of the city's
comprehensive retail analysis.
BACKGROUND
A request for qualifications (RFQ) for a Comprehensive Retail Plan was issued on September 1,
2006. Responses to the City were due on October 15, 2006. Seven firms responded to the RFQ.
1. The Chesapeake Group
2. The Buxton Company
3. Economic Research Associates
4. Talbot Consultants
5. 4 Insights
6. Urban Marketing Collaboration
7. Melaniphy& Associates
The RFP prioritized five retail study area phases, with the City reserving the right to award each
component to different consultants, based on their expertise and specialty. A staff committee
• including Cherie Murphy, Rich Kozal, Sean Stegall and Ray Moller reviewed the submittals and
selected the following three firms for formal presentations to the review committee: Urban
I '
• Award of Phase I of the Comprehensive Retail Plan for the City of Elgin
June 8, 2007
Page 2
Marketing Collaboration, 4 Insights and Melaniphy & Associates. At the conclusion of the
interview process, staff recommended that the Phase I element of the Retail Plan be awarded to
Melaniphy & Associates and that preliminary assessment of the Center City be awarded to 4
Insights, Inc.
The five phases of the retail study are as follows:
Phase I:
Wing Park Shopping Center
Otter Creek Shopping Center
Valley Creek Shopping Center
Big Timber and Randall Road Intersection
Randall at I-90
Randall and Route 72
Phase II:
Downtown Center City Area
• Route 31 Corridor
Phase III:
Tyler Creek Shopping Center
Route 20 and Nesler Road
Town & Country Shopping Center
Phase IV:
Route 25 Corridor/Congdon
Route 25 and I90
Summit Street Corridor
Phase V:
Route 47 Growth Area
Yenerich Farm
The areas included in Phase I were selected because of the level of interest and activity taking
place at the sites or the need to address declining trends in activity at specific sites. The Center
City area portion of Phase II was determined to be of significant importance for preliminary
assessment and analysis due to the unique nature of the current downtown development.
Award of Phase I of the Comprehensive Retail Plan for the City of Elgin
June 8, 2007
Page 3
Phase I
The Melaniphy proposal addresses the primary objectives of a retail study. The first is to
determine the shopping patterns, habits, and preferences of Elgin residents to be used in all of the
retail study phases. The second objective is to identify specific retail opportunities for the Phase
I locations and sites listed above. Through definitive market analysis, Melaniphy will determine
current and future opportunities, consider individual retailer's own market development
strategies, and what is the best development program for the City of Elgin.
From this program, the City will be able to:
1. Clearly see Elgin resident's shopping habits, patterns, and retail store and shopping center
preferences. It will serve as a benchmark for present and future retail development. The
program will provide resident's existing retail shopping patterns as opposed to current rumor
and unfounded opinion.
2. Make decisions based upon the recommended square footages, types and sizes of
recommended users, and sales tax benefits from individual redevelopment sites.
• 3. Efficiently match stores to market demand for new or expanded businesses.
4. Proactively recruit the best store mix to ensure the highest retail, foodservice, and service
sales.
5. Develop a strong and sound retail development or redevelopment plan for current and future
sites.
A telephone survey of at least 500 Elgin residents will be conducted regarding their existing
shopping patterns, store preferences; bug box stores shopped regularly, malls visited, frequency
of visits to boxes vs. malls, and what stores they would like to see in Elgin. This will provide a
factual benchmark of patterns, habits, and resident preferences for all phases of the study. It will
be invaluable to the study of the sites and any proposed improvements.
For each of the six locations identified within Phase I, Melaniphy and Associates will conduct
the following activities.
1. Elgin's Area Retail Trends
2. Elgin's Retail Sales for the past 10 years
3. Trade area definition
4. Retail market analysis for each location
• 5. Retail strategies and market points
• Award of Phase I of the Comprehensive Retail Plan for the City of Elgin
June 8, 2007
Page 4
Melaniphy and Associates will prepare two reports.
1. A report for the Elgin Resident Shopping Patterns and Preferences Study.
2. Melaniphy will prepare the Elgin Phase I Retail Analysis report addressing each of the
six locations and the 10 individual sites in Phase 1. Each location will be addressed
in a separate section of the report, along with the individual sites at the location.
It is expected that it will take 90 to 120 days to complete both the Elgin Residents Shopping
Survey and the study of the six locations and 10 sites.
Fees for each major part of the study are indicated below:
Elgin Resident Shopping Pattern, Habits, and Preferences Study $26,500
Phase 1 —Retail Market Study for the six locations and 10 sites $68,000
Total of all activities $94,500
Center City Assessment
4 Insights offers expertise in working with communities such as Naperville and Highland Park in
conducting individualized strategic retail planning and marketing for historic downtowns.
Because Elgin's downtown residential developments are not yet established, 4 Insights proposes
to conduct only preliminary research and assessment of existing conditions in order to support
current retail recruitment and establish future goals and objectives for downtown retail.
This first effort will provide the basis for the ultimate completion of the Retail Strategic Planning
Process, which would involve creating a market identity or "brand" for the downtown that will
distinguish Elgin from its competitors. After completion of the first phase study, 4lnsights will
submit a separate proposal for completion of the second phase study, upon the request of the City
of Elgin.
From this preliminary first phase research, the City will be able to:
1. Articulate a clear vision statement from the community for downtown retail and its
expected contributions to downtown development.
2. Define the current general site conditions and estimate future conditions for retail
development in the defined study area.
3. Designate the specific sites and/or areas for the focus of the study.
•
Award of Phase I of the Comprehensive Retail Plan for the City of Elgin
June 8, 2007
Page 5
4. Offer general planning recommendations from a retail perspective for the targeted
- sites.
5. Identify current marketing challenges and opportunities within the downtown area
4 Insights will conduct and report this research in two steps:
1. Vision, Needs and Issues Assessment
2. Current Conditions Assessment
It is expected that this research will begin in September 2007 and be completed in November of
2007.
4Insights
• Total Fee Phase I Services $34,300
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
None
FINANCIAL IMPACT
The cost of the services proposed by Melaniphy and Associates is $94,500, and the cost of
services from 4Insights is $34,300, for a total of$128,800. A total of$128,800 is budgeted and
available in the Riverboat Lease Fund, "Economic Development Incentives" account number
276-0000-791.80-27 project number 17711E, Comprehensive Retail Plan for this project.
*L/,L GAL IMPACT
Agreements will be required.
Award of Phase I of the Comprehensive Retail Plan for the City of Elgin
June 8, 2007
Page 6
ALTERNATIVES
1. The City Council may choose to award Phase I of the Comprehensive Retail Plan
analysis to Melaniphy and Associates in the amount of $94,500 and a preliminary
assessment of the Center City retail conditions to 4lnsights in the amount of$34,300.
2. The City Council may choose not to award the contract as proposed.
Respectfully submitted for Council consideration.
RHM/jr
Attachments
•
rAd I , REAL ESTATE COUNSELORS I ECONOMISTS l MARKET ANALYSTS
SITE SELECTION SPECIALISTS ! CONSULTANTS INVESTMENT ADVISORS
John C.Melaniphy,President E-Mail:jmelaniphy®melaniphy.com
January 2, 2007
Mr. Ray Moller
Director of Economic Development
City of Elgin
150 Dexter Court
Elgin, Illinois 60120
In re: Elgin Resident Shopping Survey,and
Area 1 - Comprehensive Retail Plan
10 Sites—at 6 Locations
City of Elgin, Illinois
Dear Ray:
I hope that you and your family had a pleasant holiday.
This letter represents a proposal for our firm to undertake two primary retail studies for the city
of Elgin. They are as follows:
• ■ An Elgin Resident's Shopping Survey focused upon their shopping patterns, habits, retail
store preferences, and retail locational orientation.
■ A Retail Market Analysis of six locations and 10 sites in Area 1, including the following
sites:
O Wing Park Shopping Center—7 acres
O Tyler Creek Shopping Center
O Valley Creek Shopping Center
O The intersection of Big Timber and Randall Road
• Northwest corner—65 to 70 acres
• Southwest corner—70 acres
O Randall Road and Interstate 90
• Northwest corner— 125 acres
• Northwest quadrant—adjacent— 15 acres
• Southwest quadrant—230 acres
O Randall Road and Illinois Highway 72
■ Southwest corner—30 acres
■ Adjacent to the south— 15 acres
MEIANIPW&AS90CK S, INC.
6333 N.MILWAUKEE AVENUE • SUITE 106 • CHICAGO.IL 60646 • (773)467-1212 • FACSIMILE(773)774-0454
Elgin Resident Shopping Survey & a Comprehensive Retail Plan for Area 1
While there are six retail locations, there are actually 10 individual sites (3 existing shopping
centers and 7 vacant properties), each of which, needs to be addressed with development
possibilities, prospective retailers, market timing, and physical needs. For the existing retail
developments, we will determine the best course of action to improve their attraction. For each
of the three intersections and 10 vacant land sites, we will determine what can be developed on
each individual property, along with prospective retailers, timing, and property needs.
This proposal addresses two primary objectives. The first is to determine the shopping patterns,
habits, and preferences of Elgin residents to be used in all of the retail studies. The second
objective is to identify specific retail opportunities for the Area I locations and sites listed
above. Through definitive market analysis, we will determine current and future opportunities,
consider individual retailer's own market development strategies, and what is the best
development program for the City of Elgin.
From this program, the City will be able to:
1. Clearly see Elgin resident's shopping habits, patterns, and retail store and shopping center
preferences. It will serve as a benchmark for present and future retail development. The
• program will provide resident's existing retail shopping patterns as opposed to current
rumor and unfounded opinion.
2. Make decisions based upon the recommended square footages, types and sizes of
recommended users, and sales tax benefits from individual redeveloped sites.
3. Efficiently match stores to market demand for new or expanded businesses.
4. Proactively recruit the best store mix to ensure the highest retail, foodservice, and service
sales.
5. Develop a strong and sound retail development or redevelopment plan for current and future
sites.
F0
ge
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We propose to conduct a Telephone Survey of at least 500 Elgin residents regarding their
existing shopping patterns, store preferences, big box stores shopped regularly, malls visited,
frequency of visits to boxes vs. malls, and what stores they would like to see in Elgin. This will
provide a factual benchmark of patterns, habits, and resident preferences. It will also help the
Mayor, the Council, and your staff make knowledgeable decisions. Finally, it will be invaluable
to the study of many of the sites and their implementation.
Page 2 of 8 Pages
MEIANIFW & ASSOCIATES , INC.
I
Elgin Resident Shopping Survey & a Comprehensive Retail Plan for Area 1
The program is described includes the following.
1. Sample Size
Previous experience indicates that a sample of approximately 500 Elgin residents will be
necessary to have a sufficient number of cases to cross-tabulate the data. It is normally
necessary to draw a sample of four to five times the required number, because of the high
incidence of working women, and difficulty finding people at home. Interviews are
conducted in the evening and on weekends because that is when household residents are
usually home. Also, because of caller ID and blocks against telephone solicitation, it takes
longer to complete surveys. We will need the City's help in notifying the residents that such
a survey is being. conducted and that their participation would be beneficial to the
community.
2. Questionnaire Design
We will design a questionnaire specifically for Elgin. Earlier, I provided several sample
questionnaires that we have used for other communities. Items which will be included, but
are not limited to, are as follows:
• Drug store where most purchases are made and frequency of visits;
• Supermarkets patronized most frequently;
• Big Box stores patronized most often;
• Department stores patronized most often;
■ Shopping centers frequently patronized;
■ Malls visited frequently;
• Reasons for making purchases;
• Likes, dislikes, and suggested improvements;
• Ratings comparison of competitive big boxes;
• Dining preferences;
• Internet orientation;
• Services required and not conveniently available;
• Stores that the Residents' would like to see in Elgin;
■ Household size;
• Type of housing - owner or rental;
• Occupation of the respondent;
• Occupation of the spouse;
• Age of respondent;
• Respondents household income;
• Marital status and sex of the respondents;
3. Pretest
The questionnaire will be designed and then pretested to ensure that it is understood and
flowing properly.
4. Conduct of Telephone Survey
The interviews will be conducted in the evenings and on weekends in order to maximize the
• number of available respondents.
Page 3 of 8 Pages
MEWNIPMY & ASSOCATES , 'INC.
Elgin Resident Shopping Survey & a Comprehensive Retail Plan for Area I
• 5. Tabulation of Interview Results
Once completed, the surveys will be computer processed in order to allow for maximum
cross tabulation.
6. Data Analvsis
We will thoroughly evaluate the data and identify the actions which might be taken to
improve customer orientation to Elgin and the specific sites under analysis.
7. Reports
We will prepare a report containing the results and our findings.
: INDIVIDUAL RETAIL SITE 1VLA�,ET ANAI,Y�SIS AI�iD STRA�T�E'GIGP3I,;A ��� 'J
FQM --,X LOCATIONS 4 ' 10 SITES
For each of the six locations (3 undeveloped and 3 for redevelopment) in Area I covering 10
sites, we will conduct the following:
1. Elgin's Areas Retail Trends
Initially in any retail study, it is necessary to address both national and local retail and
consumer trends. Numerous changes are taking place with retailers. Some of the changes are
is generated by an individual retailer's desire to improve square foot performances, while for
others it is caused by shifting consumer orientation and spending changes. Time-pressed
consumers continue to seek.convenience combined with varying degrees of price/value
buying depending upon their incomes. These and other changes will be identified to
determine the impact that they will have upon Elgin and the individual development and
redevelopment parcels both now and in the future.
2. Elgin's Retail Sales for the Past 10 Years
We will evaluate Elgin's retail sales experiences from 1995 to 2005 by major retail
categories based upon sales tax receipts provided by the Illinois Department of Revenue.
Our firm has been tracking this data by Chicagoland suburban communities since 1985. We
will also review the changes that occurred between the 1997 U.S. Department of Commerce,
Bureau Census', Economic Census of Retail Trade and Accommodations and Foodservice
and the similar Census of 2002. The next Economic Census will be conducted this year and
not available until 2009. Based upon all of this data we will compute per capita retail
expenditures to be applied to each trade area under study, with adjustments for varying
income levels.
3. Trade Area Definition
We will delineate the current and future trade area of each individual site. The trade areas will
be determined by identifying the type of likely retail development, current market attraction,
present and likely future competition, accessibility, shopping habits and patterns, socio-
economic levels, mobility, physical and psychological barriers, and numerous other factors.
• The trade areas will be sub-divided into.Primary and Secondary segments, and if necessary a
Tertiary segment.
Page 4 of 8 Pages
MEIANIPHY & ASSOCIATES , INC.
Elgin Resident Shopping Survey & a Comprehensive Retail Plan for Area 1
4. Retail Market Analysis of Each Indicated Location and Site in Area 1
In order to develop conclusions and recommendations regarding each site, a retail market
study must be completed. The ingredients are as follows:
a. Present and Future—Demographics
We will gather demographic data and analyze demographic changes for each trade area
delineated. We will use Claritias demographic computer data projections for each Trade
Area (Primary, and Secondary) and the Total Trade Area as a whole. Naturally, we will
make adjustments in the data as needed. We will analyze changing trends, households,
persons per households, age structure, directional growth patterns, new housing
developments, and other pertinent data. Population projections will be prepared for 2006,
2011, and 2015. The data, along with socio-economic levels and household income, will
assist us in estimating future market potential.
b. Income
We will thoroughly evaluate the income levels which exist in the various parts of each
site's trade area in order to identify low, middle and upper income neighborhoods. We
will forecast socio-economic levels within the various trade area segments in to 2006,
2011, and 2015.
c. Competition
• We will conduct an inventory of existing and proposed major competitive facilities in
Elgin and outside which will affect the trade area and the individual site's retail
attraction. We will evaluate their location, size, general performance, and any impact that
existing or proposed competition might have on the potential for the site under analysis.
We will also plot competition on maps to show were competitors and major retailers are
located.
d. Accessibility
We will assess the street, avenue, roadway, and highway network in and around each of
the Sites. More specifically, we will evaluate the accessibility to the area and ingress and
egress to the Subject Site. We will ask your help in obtaining traffic information, traffic
counts, accident-prone locations, and studies covering this area.
e. Existing Shopping Habits,Patterns, and Preferences
From the Resident Telephone Survey, we will evaluate the existing shopping habits and
patterns of residents of Area 1. This will include their orientation toward competitive
plazas and their attraction to the Site under study. This will help us to determine what
stores might be added to each of the sites under study.
f. Personal Consumption Retail Expenditures
We have the 1997 and 2002 U.S. Department of Commerce, Bureau of the Census,
Census of Retail Trade, which provides sales and establishments for major and minor
retail categories. Next we also have the Retail Sales Tax Receipt data from the Illinois.
Department of Revenue for 1995 through 2005 by major retail category. We will analyze
the changes reflected in all of this data for Elgin and its surrounding communities. This
analysis will include changes in total retail sales and the primary retail categories, such as
Page 5 of 8 Pages
MEIANIPHY & ASSOCIATES , INC.
Elgin Resident Shopping Survey & a Comprehensive Retail Plan for Area 1
• General Merchandise (including Department Stores), Apparel and Accessories, Shoes,
Furniture and Household Furnishings, Appliances and Electronics, Food, Eating and
Drinking, and others. Finally, we will forecast the likely future size of retail potential for
the individual trade areas for 2006, 2011, and 2015. This will serve as a basis for
estimating potential sales.
g. The Individual Site's Market Share
We will estimate market shares that the individual sites can expect to capture for each
type of appropriate retail category for 2006, 2011, and 2015. What is appropriate will
depend upon demographics, ages, income, household size, competition, access,
surrounding uses, shopping patterns, and other pertinent factors.
h. Alternative Development or Redevelopment Scenarios for Each Site/Proiect
We will address our market findings and consider varying scenarios to meet the market
"gaps" or market demand. This is necessary because what might be a potential solution
for one site may eliminate an opportunity at another. We suggest that we have a workshop
so that you and other members of Elgin government can participate. At that meeting we
will present individual location and site alternatives for discussion, along with our
recommendations for action. Together, we will decide the best development scheme.
i. Recommended Stores, Sizes, and Sales
Based upon the analysis, our experience, and our understanding of retail patterns in the
• Elgin Area, we will estimate and recommend the type of stores that should be included in
each Site/Project, along with their sales forecasts for 2006, 2011, and 2015. This will
include the amount of square feet that should be allocated for each type of retail facility
and the retail stores, restaurants, and service shops which can best meet market demand.
j. A Premises Audit of Each Site
We will conduct a premises audit of each site and recommend physical needs and changes
that are required to meet and improve retail attraction and potential.
5. Retail StrateLry and Market Positioning
The retail strategy is subdivided into two parts. The first is Existing retail development and
the second is Undeveloped sites. They are discussed below. Market positioning is melding
the market demand to the best mix of retail facilities to maximize retail sales. From this,
Elgin can focus upon the best tenants recommended and produce leasing materials and
marketing programs, as needed.
a. Existing Retail Developments
We will determine what additional generative retailers and foodservice facilities can be
added based upon market demand to increase the overall attraction of the existing
development. Locations included are the Wing Park Shopping Center, Tyler Creek
Shopping Center, and the Valley Creek Shopping Center. We hope that existing
ownership will cooperate in providing a list of existing stores, sales performance,
• occupancy, vacancy, and square footages. We will evaluate the market and forecast retail
sales for each category and the square footage requirements. Finally, we will provide a
list of potential retailers and foodservice users that should represent possible tenants.
Page 6 of 8 Pages
MEIANIPHY & ASSOCI4TES , iNC.
Elgin Resident Shopping Survey & a Comprehensive Retail Plan for Area 1
b. Undeveloped Sites
We will recommend the best retail, foodservice, and service mix for each of the seven
undeveloped sites based upon market demand that will maximize retail sales potential.
This includes the three locations at Big Timber and Randall Road; Randall Road and
Interstate 90; and Randall Road and Illinois Highway 72. Next, we will prepare a list of
target tenants that can meet the existing and forecast demand.
c. Market Positioning
We will define the strongest position in the competitive marketplace for the site based
upon the market and the strongest potential retailers available. The market study will
provide a list of prospective tenants for each site and the data necessary to prepare leasing
materials and marketing plans.
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We will prepare the following reports:
• A report for the Elgin Resident Shopping Patterns and Preferences Study. We will provide 10
copies of this report.
•
• We will prepare the Elgin Area I Retail Analysis report addressing each of the six locations
and the 10 individual sites in Area 1. Additionally, we will provide 15 copies of this report.
Each location will be addressed in a separate section of the report, along with the individual
sites at that location.
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Our charges are based upon the time spent by our professional staff and any expenses incurred.
Our approach is more expensive than other competitive firms because I will personally attend all
meetings, actively analyze the data, determine the conclusion and recommendations, and write a
substantial part of the report for each site analyzed. My billing rate is $200 per hour.
We expect that it will take 90 to 120 days to complete both the Elgin Residents Shopping Survey
and the study of the six locations and 10 sites.
Our fees for each major part of the study are indicated below:
Elgin Resident Shopping Pattern, Habits, and Preference Study $26,500
Area 1 - Retail Market Study for the six locations and 10 sites $68.000
Total of all activities $94,500
Page 7 of 8 Pages
MElANIPFHY & ASSOCIATES , INC.
Elgin Resident Shopping Survey & a Comprehensive Retail Plan for Area 1
We will work on both parts of the program simultaneously. We will bill monthly, indicating which
staff member worked on the project, hours incurred, expenses incurred, and the status of the
project.
If we are approved, I presume that you will prepare a contract for us to sign. If you have a
Professional Services Contract, this proposal could be attached and become a part of that contract.
I sincerely hope that we may be of service in assisting Elgin in determining its resident's shopping
patterns and preferences and the orderly and market driven retail development and redevelopment
of the Area I sites.
Respectfully submitted,
MELANIPHY & ASSOCIATES, INC.
John C. Melaniphy
President
•
Page 8 of 8 Pages
MElANIPHY & ASSOCWTES , INC.
//11 N S I G H T S
'., RESEARCH-BUSINESS STRATEGY-MARKETING
February 13, 2007
PROPOSAL
TO: City of Elgin, Illinois
FR:-41nsights, Inc.
RE: Market Analysis and Retail Strategy for Downtown Development
41nsights, Inc. is pleased to submit the following proposal for professional services to support future retail*
planning for Downtown Elgin. The following proposal is very brief, so please feel free to call for clarification.
The services included in this proposal cover the first Phase of the Retail Strategic Planning Process,as
outlined in the Retail Comprehensive Planning Model, previously submitted for your review. Phase Two
Services will be submitted in a separate proposal, as requested.
PHASE ONE SERVICES: ASSESSMENT
Task 1. Vision, Needs, and Issues Assessment
• Review the Elgin Master Plan, specifically for the Downtown retail vision and priority
objectives
• Interview Community, business,and non-profit leadership to assess needs and issues
pertaining to retail development Downtown
0 Conduct resident opinion research to identify Community wants,fears and issues on the
same topic
• Identify Community heritage, culture, and values that must be considered and reflected in
Downtown retail.
Deliverable: Articulate a clear vision statement from the Community for Downtown retail and its expected
contributions to Downtown development.
Task 2 Current Conditions Assessment
Working with the City Planning team...
• Define the parameters of the Downtown Study Area
• Review and define City current policies and plans that may affect retail development in the
Study Area,e.g.zoning, ordinances; architectural and other guidelines; parking,access
and traffic flow
• Review the physical characteristics of the Study area from a retail perspective, e.g.
visibility, pedestrian connectivity,etc.
• Review major planned developments that may affect retail strategy, both residential,
commercial,major employer, and public uses.
• Conduct a retail audit of current spaces in the designated Study Area and classify
according to retail use,to identify gaps in the retail mix.
Deliverables: Define the current general site conditions and estimate future conditions for retail
development in the defined Study area. Designate the specific sites and/or areas for the
focus of the Study.Offer general planning recommendations from a retail perspective for
the targeted sites.
* NOTE: The term "retail"includes merchandise,foodservice and commercial personal/business services
establishments.
r
6450 College Road #304 Lisle,Illinois 60532-3290
(630)983-3024 (630)768-6144 www.4]nsights.com
• Elgin,02/13/07, Page 2 of 2
PHASE TWO SERVICES: CUSTOMER BASES, COMPETITION,AND TARGET TENANT PLAN
Following the completion of the Assessment Phase,41nsights, Inc. would be pleased to submit a separate
proposal to proceed to Tasks 3, 4 and 5 in the Retail Strategic Planning Process:
#3. Identify, rank and locate the highest potential customer bases for Downtown Retail
#4. Analyze the competition and find the strongest market positioning for Downtown's future retail
offering for the customer bases targeted
#5. Develop a specific Target Tenant Plan suitable for leasing direction for the Study Area.
TIMELINE AND BUDGET FOR PHASE ONE ASSESSMENT:
41nsights can begin the services outlined in early to mid-May of 2007,and we anticipate completion in 6-8
weeks.
41nsights proposes to complete the deliverables outlined.in Task 1 and 2 for a professional services fee of
$34,300, plus out of pocket expenses.
The most cost-effective survey methodologies will be determined with the City,if needed, at the appropriate
time in the Study. 41 nsights'professional service fees for all primary research are included in the$34,300.
fee. Out-of-pocket expenses would be primarily for survey mailing,tabulating, and/or other survey
• distribution methods, as determined with The City to be most cost-effective.
Minimal syndicated data purchases will be required for the Assessment Phase. If needed, they will be billed
at our cost, which is at our discounted licensee rate, and with no additional mark-up.
PAYMENT TERMS AND ACCEPTANCE:
Your signature below will indicate your acceptance of this proposal. Upon receipt of a 50%deposit
($17,150.)we will confirm the project schedule and submit a work plan with a date-specific timeline. The
balance of the fee($17,150.)plus out of pocket expenses are due upon final report delivery. Please
understand that we continue to schedule projects until receipt of the signed agreement letter and deposit,
therefore,the project start time quoted above may be adjusted.
We very much'appreciate the opportunity to offer our services, as we are extremely positive about the retail
potential of Downtown Elgin--and we also have the highest respect and regard for your professional team.
Accepted: THE CITY OF ELGIN 41NSIGHTS, INC.
(Name)
(Title)
(Date)
6450 College Road #304 Lisle,Illinois 60532-3290
(630)983-3024 (630)768-6144 www.41nsights.com
t
City of Elgin, Illinois
Comprehensive Retail Plan
Solicitation of Consultant Interest
and
Request for Qualifications (RFQ)
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City of Elgin -
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CornVehensive Plan
and Design Guidelines
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Issued: September 1, 2006
Responses.Due: 5:00 p.m. October 15, 2006
•
Request for Qualifications
Retail Plan for City of Ellin, IL
I. Overview
The City of Elgin, Illinois is located along the Fox River, approximately 38 miles
northwest of Chicago. Elgin is a regional destination covering approximately 38 square
miles with a current population of 102,000. The Northeastern Illinois Planning
Commission (NIPC) projects that Elgin will ultimately cover over 75 square miles,
adding approximately 68,000 people, (24,000 households) and 34,000 jobs by the year
2030.
An ongoing City priority is to provide a diverse mix of retail, restaurants and
entertainment to enhance the economic vitality and quality of life in the community. To
that end, the city is seeking an interested and qualified consultant firm to develop a
comprehensive retail market analysis and retail strategic plan for key sites within its
boundaries.
II. Purpose
In 2005, The City of Elgin adopted a new comprehensive plan and design guidelines.
This document has set the vision for future development of the city, including targeted
areas for economic development that consist of various key retail centers and corridors
throughout the city. This plan identifies not only current sites, but key retail sites in
future growth areas. The city wishes to develop and implement a retail strategy that will:
• Help guide retail development congruent with the goals and vision of the
comprehensive plan;
• Identify the most productive retail, foodservice and personal service business mix
for key targeted sites, based on market analysis.
• Residential, office and industrial uses are not required in this study.
The City of Elgin is issuing this Request for Qualifications (RFQ) to select a qualified
retail consultant to assist this effort and begin a long-term relationship with the City. The
consultant will work closely with the City on achieving the retail component of the vision
in the comprehensive plan.
III. Project Scope
The City has identified approximately14 key retail parcels for study. 8 of these sites
contain existing retail nodes or centers, including a defined area of Downtown; 6 of these
parcels are currently undeveloped.(attachment 1).
1
The retail parcels will be prioritized by the City for study—they will not be done
simultaneously. For each of these parcels, the City is seeking a consultant to provide a
comprehensive market analysis and retail strategy that will include:
• Trade Area Definition
• Retail Market Analysis
• Consumer Market Analysis
• Market Positioning
• Retail Strategic Plan
IV. Project Objectives
The deliverables of the market analysis and retail strategy for each site should enable the
City of Elgin to:
• Proactively identify and recruit the highest potential retail, restaurant and
service businesses
• Make fact-based decisions about the total square feet, the type and size of
individual retailers that can be supported at each of the designated sites
• Efficiently match opportunities for new or expanded retail businesses to
• available spaces that add to the strength of the current retail mix.
• Gain insight into the wants and needs of Elgin current and future retailers
and shoppers in the trade area of each specified site.
• Efficiently plan for future retail sites
V. Project Deliverables
The market analysis and retail strategic plan will include the following components for
each of the targeted sites:
1. Trade Area Definition
■ Determine the primary current and potential trade areas of each of the sites
below and summarize current conditions affecting trade area size.
2. Retail Market Analvsis
■ Quantify current and future market demand in the estimated trade area by
store type and merchandise category; and indicate opportunity gaps in the
• marketplace.
■ Include a comprehensive analysis of both current and future competitors in
each trade area and indicate their possible effects on trade area demand.
2
■ Conduct a premises audit of each site and recommend physical
needs/alterations that will improve retail potential.
3. Consumer Market Analysis
■ Identify, rank, and locate the highest potential customers for each site, both
current and projected.
■ Identify consumer buying preferences in each trade area
■ Identify national, regional or local trends that may affect consumer demand or
retail preferences in the trade area.
4. Retail Strategy
A. For sites with existing retail development:
■ Develop the highest-potential retail tenant mix by store/foodservice category
that will increase retailer revenue, based on the market and consumer analysis
and the premises audit. This strategy should include an approximate
proportion of the tenant mix that each category should occupy—factoring in
strong retailers/restaurants currently operating at these sites.
■ Create a targeted tenant recruitment list, based on market and consumer
analysis, site characteristics, City overall vision, and zoning.
B. For undeveloped sites:
• Develop the highest-potential retail tenant mix by store/foodservice category
strategies that will result in maximum retailer revenue potential compatible
with the rest of the proposed development.
• Create a targeted tenant.recruitment list, based on market and consumer
analysis, site characteristics, the planned development uses, City retail vision,
and zoning.
5. Market Positioning
■ Define the strongest position in the competitive marketplace for the retail site
as a whole,based on market and consumer analysis.
■ The market positioning should serve as the foundation for subsequent use in
preparing tenant recruitment and leasing materials, and consumer branding
and marketing plans.
•
3
VI. Qualifications and Process
Responses to this Request for Qualifications are intended to solicit qualified consultants
with extensive experience in consumer research, retail market and site analysis, and
shopping center/district development and retail mix planning. The preferred consultant
will have also worked directly with municipalities, mixed-use developments, restaurants,
retail tenants and the broker community. Brokers and tenant representatives are not
eligible for this study.
All requests for information, clarification and additional information should be directed
in writing to Ray Moller, Director of Economic Development for the City of Elgin.
Inquiries and questions will be accumulated and answers sent simultaneously to all
entities to ensure that all entities have the same opportunity to respond.
Revisions to the Request: The City retains the right to modify this RFQ. The City shall
post additional information, changes or revisions to the RFQ on the City of Elgin website
at www.cityofelgin.org and may additionally provide materials directly to firms that the
City knows to be interested in performing such work. It shall be the responsibility of any
responding consulting firm, however, to obtain such materials (if any) from the City of
Elgin website.
Submission Requirements:
• The following information is required from each respondent:
1. Applicant's name, street and mailing address, phone/fax, email information.
Describe the structure of the applicant's business and length of operation.
Specify legal formation of the applicant's organization (corporation,
partnership, JV, etc) and when this legal structure was created. If the
applicant proposes a joint venture with another firm(s), or a separate legal
structure for this project, please note these details, the relationship of the
partners involved, and the firm responsible for the overall project.
2. Resumes of all owners, partners and officers. Name of representative
authorized to act on behalf of the team. Resume of principal personnel
(professional experience, time with firm, responsibilities, representative
projects) and sub-consultants that will be part of a project team.
3. A portfolio with sufficient detail that shows examples of comparable projects,
including references for projects completed within the past three years.
4. Name, address, phone number for at least four references, preferably
municipalities involved in consulting projects of similar scope. Please include
a release letter on your letterhead for each reference.
5. List of all municipalities currently under contract with your firm for retail
consulting services.
4
Attachment 1
*Preliminga Schedule of Retail Study Sites:
Area I:
Wing Park Shopping Center
Tyler Creek Shopping Center
Valley Creek Shopping Center
Big Timber and Randall Rd Intersection
Randall @ I-90
Randall &Rt 72
Area II:
Downtown Center City Area
Rt 31 Corridor
Area III:
Otter Creek Shopping Center
Rt 20 &Nesler Rd
Town & Country Shopping Center
Area IV:
Rt 25 Corridor/Congdon
Rt25 &I90
Summit Street Corridor
Area V
Rt 47 Growth Area
Yenerich Farm
* These study areas may be altered and will be conducted in phases not necessarily in the
order listed above.
•
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