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07-183 Resolution No. 07-183 RESOLUTION AUTHORIZING EXECUTION OF AN AGREEMENT WITH MELANIPHY & ASSOCIATES, 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 Melaniphy& Associates, 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 25, 2007 Adopted: July 25, 2007 Omnibus Vote: Yeas: 7 Nays: 0 Attest: s/Diane Robertson Diane Robertson, City Clerk Professional Services Agreement THIS AGREEMENT is made and entered into this f_day of July, 2007 by and between the City of Elgin, Illinois, a municipal corporation (hereinafter referred to as "City"), and Melaniphy & Associates, Inc., an Illinois corporation, located at 6333 N. Milwaukee Avenue, Suite 106 in Chicago, Illinois (hereinafter referred to as "Consultant"). Whereas, the City has determined it to be in its best interests to obtain the assistance of a consultant concerning the various studies, analyses and report preparation 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 in the scope of services proposal. 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. Whereas, Consultant is experienced in all aspects of shopping survey analysis and retail market analysis and desires to render Consultant services to the City. NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the receipt and sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows: 1. Scope of Work Consultant shall perform and direct the necessary qualified personnel to perform the services for the Scope of Services proposal, a copy of which is attached hereto and made a part hereof as Attachment A. 2. Time Schedule and Term Consultant shall perform and complete the various services and tasks in Attachment A hereto according to the time line included in Attachment A. Alterations to the time line may be made by mutual written agreement of the parties. 3. Study Area The primary study area for this Agreement is generally defined by the six sites identified as Area I in the Comprehensive Retail Plan RFQ which is attached hereto and made a part hereof as Exhibit B. 4. Fee So long as Consultant is discharging its obligations hereunder to the reasonable satisfaction of City, Consultant shall be paid a total maximum fee for such services not to exceed $94,500 in total for all tasks combined regardless of the actual cost and expenses incurred by the Consultant. Said fee is divided as follows: Elgin Resident Shopping Study $26,500; Phase I Retail Market Study $68,000. All payment and fees paid to Consultant shall be made pursuant to fee rates provided for in Attachment A; provided however, that in no event shall City be obligated to Consultant for any payment which exceeds the aforementioned total maximum fee provided for by this paragraph. Progress Payments Each month the Consultant shall provide an invoice that describes the invoice period, the services rendered (including percent work completed), fees and expenses due, payment due date, billing history, and other information as may be required by City. Undisputed portions of payments shall be paid within thirty (30) days. Additional Services Additional services and expenses by the Consultant beyond the Scope of Work of this contract shall require prior written approval of the City Council. 5. Rights in Results of Services The results of Consultant's services under this Agreement shall be the exclusive property of City, and all documents (including, without limitation, all writings, drawings, blueprints, pictures, recordings, computer or machine-readable data, and all copies or reproduction hereof) which describe or relate to the services performed or to be performed pursuant to this Agreement or the results thereof, including, without limitation, all notes, data, reports or other information received or generated in the performance of this Agreement shall be the exclusive property of City and shall be delivered to City upon request (except for one copy, which may be retained by Consultant for its confidential files). No articles, papers, treatises, or presentation related to or in any way based upon or associated with the services performed pursuant to this Agreement shall be presented or submitted for publication without the prior written consent of City. It is agreed that the results of Consultant's services and the work product provided under this Agreement are not intended or represented to be suitable for reuse by the City on any project not contemplated by this Agreement and such reuse shall be without liability to the Consultant. 2 6. Other Agreements Consultant warrants that it is not a party to any other existing or previous agreement which would prevent Consultant from entering into this Agreement or which would adversely affect Consultant's ability to perform services under this Agreement. During the term of this Agreement, Consultant shall not, without the prior written consent of City, perform services for any persons, firm or corporation other than City if such services could foreseeably lead to a conflict with Consultant's obligations under this Agreement. 7. Subcontracting If Consultant intends to hire or retain any person, firm or corporation to perform services under this Agreement, Consultant shall first secure the written agreement of such party that such party (1) shall assume and agree to be bound by the same obligations as Consultant has assumed under the provisions of this Agreement, and (2) that such party shall not be or act as an agent or employee of City, not assume or create a commitment or obligation on behalf of nor bind City in any respect whatsoever. Consultant shall provide City with a copy of each such written agreement. Prior to subcontracting, Contractor shall obtain prior written approval of the City for each individual subcontractor. City shall have the right to refuse approval of any subcontractor for any reason. Any fees, payments or other costs associated with any sub contractor or other persons or firm shall be at the sole cost of the Consultant payable from the fees the City is paying to Consultant pursuant to this Agreement. 8. Assignment Neither this Agreement nor any of the rights or obligations hereunder may be assigned or otherwise transferred by Consultant, nor shall the benefits of this Agreement inure to the benefit of any trustee in bankruptcy, receiver or creditor of either party, except as may be required by law, whether by operation of law or otherwise, without the prior written consent of either party. Any attempt to assign or transfer this Agreement or any rights hereunder without such consent shall be null and void and of no force or effect. 9. Independent Contractor This Agreement shall not be construed so as to create a partnership, joint venture, employment or any agency relationship between the parties hereto. 3 10. Licenses Consultant shall obtain at its cost any and all licenses required by federal, state, or local statues, regulations or ordinances necessary for the performance of its serves pursuant to this Agreement. 11. Compliance with Laws Consultant shall at all times impose work orders on its employees and subcontractors which are designed to assure that they comply with all applicable federal, state and local laws and regulations (including, but not limited to, occupational safely and environmental protection statutes and regulations) in performing services hereunder, and shall comply with any directions of governmental agencies and City relating to site safety, security, traffic or other matters. Failure to comply with this Section shall constitute a material breach of this Agreement, and shall entitle City to terminate this Agreement upon ten (10) days written notice without penalty to City. 12. Indemnification of City of Elgin Consultant shall defend, hold harmless and indemnify City from and against any and all suits, causes of action, claims for damages, damages and any other liability of whatever nature caused by the negligent acts of the Consultant, its collaborating firms, its subcontractors or agents in the performance of this Agreement. In the event the City invokes the provisions of this paragraph, counsel for the City shall be of the City's choosing. The provisions of this paragraph shall survive any termination and/or expiration of this Agreement. 13. Force Majeure The Consultant shall not be liable to the City for any failure, delay or interruption of service or for any failure or delay in the performance of any obligation under this Agreement due to strike, walkouts, acts of God, governmental restrictions, enemy action, civil commotion, unavoidable casualty, unavailability of fuel or parts or other similar acts beyond the reasonable control of the Consultant. 14. Consultant's Insurance Consultant shall obtain and maintain the following policies of insurance: (1) Worker's compensation and occupational disease insurance in amounts required under the laws of the State of Illinois; 4 (2) Commercial general liability and automobile liability insurance for bodily injury, death or loss of or damage to property of third persons in the minimum amount of $1 million per occurrence which policy shall name City as additional insured. Consultant shall furnish to City of Elgin a certificate of insurance evidencing such policies concurrently with the execution of this Agreement. 15. Severability If any portion of this Agreement, or application thereof to any person or circumstance, shall to any extent be deemed to be invalid, void, or otherwise unenforceable for any reason, the remainder of this Agreement, and the application of such provision to persons or circumstances other than those as to which it is held invalid, shall not be affected thereby, and each provision of this Agreement shall be valid and shall remain in full force and effect. 16. Governing Law 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. This agreement shall be subject to and governed by the laws of the State of Illinois. 17. Termination The City may by written notice to the Consultant terminate the whole or any part of this contract if the Consultant fails to make delivery of the services within the time specified herein or any extension thereof, or if the contractor fails to perform any of the other provisions of the contract, or fails to make progress so as to endanger performance of this contract in accordance with its terms, and in either of these two circumstance does not cure such failure within then (10) days (or such longer period as the City may authorize in writing) after receipt of notice from the City specifying such failure. In the event this Agreement is so terminated, the Consultant shall be paid for services actually performed and reasonable expenses actually incurred prior to termination according to the rates set forth in Exhibit 1 attached hereto, except that such payment and reimbursement shall in no event exceed the amount specified under Section 4 above. 18. News Releases The Consultant may not issue any news releases without prior approval from the City, nor will the Consultant make public proposals developed under this Agreement without prior written approval from the City prior to said documentation becoming matters of public record. 5 19. Entire Agreement This Agreement contains the entire understanding and agreement between the parties hereto with respect to the subject matter hereof and supersedes all previous communication, negotiations and agreements, whether oral or written, between the parties hereto with respect to such subject matter, and no additions to or modifications of this Agreement or waiver of any provisions of this Agreement shall be binding on either party unless made in writing and executed by City. 20. Notices Communication to the Consultant means notice in writing to: Mr. John C. Melaniphy, 6333 N. Milwaukee Avenue, Suite 106, Chicago, IL 60646. Communication to the City means notice to the contracting officer in writing to: Raymond H. Moller, City of Elgin, 150 Dexter Court, Elgin, IL 60120. 21. No Personal Liability No officer, director, or employee of the City or of the Consultant shall be personally liable for the fulfillment of the conditions of this Agreement. 22. Cost and Quantity Opinions In providing estimated construction costs, the City understands that the Consultant is not an architect or engineer and is not qualified to provide opinions of probable cost and will therefore rely on cost estimates prepared by representatives of the City of Elgin or other secondary data sources. The Consultant makes no warranty, express or implied, that the bids or the negotiated cost of the work will not vary from the Consultant's estimates of future construction costs. 23. Standards of Care In providing services under this Agreement, the Consultant shall perform in a manner consistent with that degree of care and skill ordinarily exercised by members of the same profession currently practicing under similar circumstances. 6 1 The terms and condition set forth herein are accepted as of the f—day of July, 2007. CITY OF ELGIN MELANIP14Y& SSOCIATES, INC. By: B . OlufZMana i F arin J hn C Mel - by City e T' e: Attest: Diane Robertson, City Oerk FALegal Dept\Agreement\URS(TIF)Rt 20-Rev 2-5-04.doc 7 City of Elgin Agenda Item No. June 8, 2007 NoRTxWasT TO: Mayor and Members of the City Council ;. . G n, FROM: Olufemi Folarin, City Manager "'` 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 11 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 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 1: 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 I1: 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 $26,500 Phase I — Retail Market Study for the six locations and 10 sites 6$ 8,000 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 $34,300 COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED None NANCIAL IMPACT The cost of the services proposed by Melamphy 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. �"Vf,�GALIMPACT 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. RHM/jr Attachments a I , { , REAL ESTATE COUNSELORS ECONOMISTS I MARKET ANALYSTS I SITE SELECTION SPECIALISTS I 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 G Valley Creek Shopping Center G 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 MEIN PHY& ASS 0CWTES, INC 6333 N.MILWAUKEE AVENUE - SURE 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. f cr' ? 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 1 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. 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 MEWNiPHY & AS50CWTES , INC. 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 Desijzn 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 MEONIPHY & ASSOCIATES , INC. Elgin Resident Shopping Survey & a Comprehensive Retail Plan for Area 1 5. Tabulation of Interview Results Once completed, the surveys will be computer processed in order to allow for maximum cross tabulation. 6. Data Analysis 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 SITS T ANAL D--W-gItA L A MY For each of the six locations (3 undeveloped and 3 for redevelopment) in Area 1 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 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 Shoppinll 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 MEIANIPFiY & ASSOCIATES , INC. 4 , Elgin Resident Shopping Survey & a Comprehensive Retail Plan for Area I 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. S. Retail Strategy 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 NIEMIPW & ASSOCIATES , 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. 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. 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 MEIANIPHY-& ASSOCIAUES , INc.. Elgin Resident Shopping Survey & a Comprehensive Retail Plan for Area I 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 1 sites. Respectfully submitted, MELANIPHY & ASSOCIATES,INC. John C. Melaniphy President Page 8 of 8 Pages MEANIPHY & ASSOCIATES INC. REAL ESTATE COUNSELORS ECONOMISTS MARKET ANALYSTS . .�. SITE SELECTION SPECIALISTS I CONSULTANTS I INVESTMENT ADVISORS John C.illelaniphy,President E-flail:jmelaniphy @melaniphy.com October 12, 2006 Mr. Ray Moller Director of Economic Development City of Elgin 150 Dexter Court Elgin, Illinois 60120 In re: Cost Estimate for the Project Retail Plan for the City of Elgin, Illinois Dear Ray: Our costs estimates for the various aspects of the attached proposal are as follows: Cost Estimates for Elgin Retail Study Activity Cost Ran e'' Low High Consumer Market Analysis Resident Telephone Survey $23,000 $26,500 Per Site Cost - Development Sites - 6 Parcels S14,000 $17,000 Per Site Cost - Redevelopment Sites - 8 Properties S16,000 $20,000 I Costs shown are plus expenses Our billing rates per hour range as follows: Senior Officer $200.00 Officers $150.00 - $175.00 Principal Consultants $125.00 - $150.00 Market Analysts S 95.00 - $125.00 Associate Analysts S 75.00 - S 95.00 Technical Staff S 60.00 - S 75.00 Secretarial S 45.00 - S 60.00 MEWNIPHY& AS,90CIATES, INC. 6333 N. MILWAUKEE AVENUE • SUITE 106 • CHICAGO, IL 60646 • (773)467-1212 • FACSIMILE(773) 774-0454 Elgin Comprehensive Retail Plan Cost Estimates October 12, 2006 If selected, we can discuss the fees and per-site charges which will vary depending upon the size and complexity of each site and the number of sites to be undertaken at one time. Sincerely, John C. Melamphy President 2 MEIANIPHY & ASSOCIATES , INC. �, 4q — City Of Elgin Agenda Item No. D June 8, 2007 NORTHWEST 0 KIIK ' TO: Mayor and Members of the City Council r;mrntir Grounlc and Dirrr.�ij?c�,Tt.r FROM: Olufemi Folarin, City Manager 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 REP 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 190 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 I 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 $34,300 COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED None �f�-NANCIAL IMPACT W 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. �,WIGAL 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 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. RHM/jr Attachments REAL ESTATE COUNSELORS ECONOMISTS ( MARKET ANALYSTS SITE SELECTION SPECIALISTS I 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 nvo 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 E) 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 6333 N.MILWAUKEE AVENUE SUITE 106- CHICAGO.IL 60646 - (773)467-1212 - FACSIMILE(773)774-0464 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. t PYR07ECT�OBJECTIVES � , �� . �. r 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 1 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. ul I Nei"I nm 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 MEIANIPHY- & ASSOCIATES ,, INC. 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 NIEWNIPHY & ASSOCIATES , INc. Elgin Resident Shopping Survey & a Comprehensive Retail Plan for Area 1 5. Tabulation of Interview Results Once completed, the surveys will be computer processed in order to allow for maximum cross tabulation. 6. Data Analysis 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. II�DIVIDVAI.RETAIL�SIT�E '; +T AI�iAI,Y�SISAD�S R�A�'FE'�I�C��P�L�`__�� For each of the six locations (3 undeveloped and 3 for redevelopment) in Area 1 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 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 ME-ANlPHY & 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 MERNiPHY & AMOA-TES , Elgin Resident Shopping Survey & a Comprehensive Retail Plan for Area 1 j 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 Strategy 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 & AS OCWTES , iNc a , w 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. '✓+ f � v>' v ti'.7- f 'gF�.� '- llfri'p yRlP L#ic� es- '7��sig�� a s� .._ 6 C 1 t 't,4 3. .�n a'/ .;x ti��c��t•uR! a�„c�'i'G,LLf``.Za:Yh7 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. F cT.• 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 I - Retail Market Study for the six locations and 10 sites $68,000 Total of all activities $94,500 Page 7 of 8 Pages IA"PIV & A- CWTES , INC. Elgin Resident Shopping Survey & a Comprehensive Retail Plan for Area 1 ' We will work on both arts of the program simultaneous) We will bill month) p p g y. y, 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 1 sites. Respectfully submitted, MELANIPHY & ASSOCIATES, INC. John C. Melaniphy President Page 8 of 8 Pages MEIANIP14Y & ASSMATES , M. z . doll 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 0 Review the Elgin Master Plan, specifically for the Downtown retail vision and priority objectives 0 Interview Community, business,and non-profit leadership to assess needs and issues pertaining to retail development Downtown o Conduct resident opinion research to identify Community wants,fears and issues on the same topic o 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. 6450 College Road #304 Lisle,Illinois 60532-3290 (630)983-3024 (630)768-6144 www.4insights.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. 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 marls-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.4insights.com t City of Elgin, Illinois Comprehensive Retail Plan Solicitation of Consultant Interest and Request for Qualifications (RFQ) ------ Figure 3.4 '' t+r rr Land Use Plan Map Lee En.r fbremlr tax e.U6Id—) i'. ; ._y:y:;:' - _ •�.;, a..1 w.onrry n.w.mr R+� twwn.aemr .l '.'-`• — '';tt ®Arnim om*R Aj"r p.taaa.uT.,cn) �)yn omrq ardrwrtee.a.un,.r.ce) -- �.. --.: -- bsxArPaxrevt OlM l :.. nyvt"irevatrW.wu.die.. - `� -- NTrn.xre.C.W4- - L ` I r G1ty of Elgin '._ Comprehens!vePlan and Design Guidelines Civ d Elgin a i •: 4 � 't 1, tamwatrA De'+ebP�'a f r i i J �.�f r+•`', a r U^�" �.�.C.:S Fe.TE rnri'C:�' n.O�I:hrtrit<Lro S'rol9-6�rcoras�At A. F.3 Es,r Pwr kV G* Issued: September 1, 2006 Responses.Due: 5:00 p.m. October 15, 2006 Request for Qualifications Retail Plan for City of Elgin, 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: o 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 Analysis ■ 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, N, 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 • • 1 Attachment 1 *Preliminary 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 H: 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 Rt 25 &190 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. 1 Jim r� r lb i ICA � - 3•' `F'-'---tee■ '� --��'Il��. �S 01��i 111r��lll11111►.��rl - f �,!J � a ■ �. in 0 0i■ells ■■�..• r Fd "• ., �■;•'�,�;�' ��'��u,::�� -= . ,'�x,,`;.11��:..': r _ L 1 per_ �' � �■��t■■�IIII■■ unar 1 . ,e '�, �1 �' �'`� 11'111 �µ�,�� r-r ■�.��.�. �_s, �� `� . � `= '� F 1�,.1�� {1111{►` 10 ��'ll■ �,,e IP WOO x 11'1 1�.e■�+-t�a�s�oa® ��:r■ ._ I -.. e e e e e e e ■ — 2 CI ■_. eHIMA 3