HomeMy WebLinkAbout15- Willdan Bozeman MT Strategic Plan SubmittalProposal to Prepare a
Strategic Plan
City of Bozeman Montana
Engineering and Planning | Energy Efficiency and Sustainability | Financial and Economic Consulting | National Preparedness and Interoperability
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Cover Letter
December 1, 2015
Mr. Chris Kukulski, City Manager
City of Bozeman
PO Box 1230
Bozeman, Montana 59771
Re: Proposal to Prepare a Strategic Plan for City of Bozeman
Dear Mr. Kukulski:
Willdan Financial Services (“Willdan”) is pleased to submit the following proposal to the City of Bozeman
(“City”) to prepare a Strategic Plan. Willdan understands that the objective of this project is to assist the City of
Bozeman, and community stakeholders to development and implementation of an inspiring Vision and Strategic
Plan that can be used to guide the City through successful growth, decision‐making, budgeting, and resource
allocation over the next three to ten years.
To undertake this engagement, Willdan is joined by John How and Forrest Sanderson of KLJ’s Bozeman office.
Together, the proposed Project Team firm is uniquely qualified to prepare a comprehensive Strategic Plan and
inform the City’s critical public policy and resource deployment decisions. As we understand the assignment,
Bozeman is seeking the development of a comprehensive strategy for the City that will be the product of a local
planning process and will be designed to guide the City toward best-in-class public service delivery and fiscal
sustainability. Accordingly, Willdan is prepared to provide the following specific deliverables:
Vision Statement and Mission
Methodology and Approach to Strategic Planning Facilitation and Public Engagement
Strategic Plan Development Services
Operational and Administrative Framework
Implementation Plan
Final Consolidated Strategic Plan Report and Internal/External Presentations
In particular, the Strategic Planning process will enable the City of Bozeman to examine the community’s
growth patterns and demographics, and identify the need for service with respect to future trends and growth.
Ultimately, this plan will be establish priorities for public service delivery and serve as a mechanism for
coordinating the efforts of individuals, organizations, private industry, and local governments concerned with
the City's economic development and future. The final deliverables will provide the City with research, analysis,
economic benchmarking, and implementation plan monitoring and reporting tools based on best-in-class
industry methodologies and structured for easy use by City staff to implement the study’s priorities and
recommendations after the contract period. The ultimate outcome of this engagement will be to deliver a
custom-built, flexible analytical tool and implementation plan that will assist City staff, developers and other
stakeholders to objectively analyze public service delivery policies and alternatives that will serve to grow the
City’s tax and employment base. Our Project Team is excited about this opportunity to serve the City of
Bozeman. To discuss any aspect of our submission, or arrange for an interview, please contact Ms. McKay
directly at (202) 510-0511, or via email at mmckay@willdan.com.
Sincerely,
Willdan Financial Services
Molly S. McKay Mark Risco
Principal Consultant President and CEO
Bozeman, MT
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Table of Contents
Cover Letter ......................................................................................................................................................................................... i
Table of Contents ................................................................................................................................................................................ ii
Project Understanding ........................................................................................................................................................................ 3
Scope of Services ................................................................................................................................................................................ 3
Project Approach and Work Plan .................................................................................................................................................... 3
Required City of Bozeman Staff Support ........................................................................................................................................ 8
Project Timeline .................................................................................................................................................................................. 9
Similar Project Experience and References ...................................................................................................................................... 10
Cost Proposal .................................................................................................................................................................................... 14
Fee Breakdown ............................................................................................................................................................................. 14
Appendix ......................................................................................................................................................................................... A-1
Qualifications, Project Team, and Resumes ............................................................................................................................... A-1
Molly McKay ............................................................................................................................................................................... A-3
James Edison ............................................................................................................................................................................... A-5
Ernesto Vilchis ............................................................................................................................................................................. A-7
Jose Ometeotl ............................................................................................................................................................................. A-8
John How, AICP ......................................................................................................................................................................... A-10
Forrest Sanderson, CFM............................................................................................................................................................ A-12
Shari Eslinger............................................................................................................................................................................. A-13
Sample Reports ............................................................................................................................................................................. A-14
Required Form .............................................................................................................................................................................. A-15
Non-Discrimination Affirmation Form ...................................................................................................................................... A-15
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Project Understanding
The City of Bozeman is a community of nearly 40,000 residents within 19 square miles; located in the southwest of
Montana, it lies in the fastest growing County in Montana, Gallatin County. The purpose in seeking a strategic plan is to
improve the quality of life in the City of Bozeman in part by building a robust and healthy economy that is both diversified
and sustainable. In so doing, there are a variety of factors that must be considered including making sure that the most
financially appropriate choices are made in the interest of the taxpayer and to preserve local character and community
spirit. We also understand the importance of ensuring ongoing projects such as the City’s Unified Development Code
rewrite, Midtown Redevelopment Plan and Transportation Master Plan along with the future update to the Downtown
Plan must be incorporated into the City’s vision.
A comprehensive strategy plan will incorporate the following in an effort to develop and diversify the economy of the City
of Bozeman through effective and diversified partnerships, strategic investments of resources:
Assessment of the Bozeman community’s growth patterns and demographics to identify the need for service with
respect to future trends and growth.
Identification of a larger vision and blueprint for incorporating and implementing existing service delivery,
transportation, infrastructure and land use plans as a whole as the foundation that "informs” future
departmental and/or service delivery plans.
Preparation and finalization of a Strategic Plan that includes short-, medium-, and long-term initiatives that will
enable the City of Bozeman to take immediate action on certain tasks as well as take initial steps in the planning
for long-term projects.
The Strategic Plan process will analyze the current market situation and identify definite steps and specific actions to
facilitate re-development, create new job opportunities, encourage entrepreneurship and innovation, enhance fiscal
sustainability and investment in targeted development areas, place appropriate emphasis on market sectors, increase
private investment throughout the City, and build on and preserve the City’s distinct sense of place.
Scope of Services
Project Approach and Work Plan
The overarching focus of the Willdan Team’s approach to strategic planning is to facilitate collaborative process of data
collection, information sharing and consensus building with the Client Team and the Bozeman community. This will
require an iterative process and partnering with both internal and external stakeholders. The outcome of this facilitated
strategic planning process will be a detailed, time-bound implementation plan for comprehensive public service delivery
with established metrics with which to measure outcomes. The proposed detailed scope of services follows:
Task 1: Strategic Plan Vision Statement
Objective: To clarify the City of Bozeman’s identity, purpose, and targeted outcomes with a long term perspective,
as well as the ability to respond quickly to opportunities.
Outputs/Deliverables:
Demographic, Fiscal and Economic Assessment
Summary of Existing and Pending Service Delivery Plans
Strategic Plan Consensus Building Workshop and Vision Statement
To define where or what the Bozeman Community wants to be in a specified point in the future, the Willdan team will
work through a collaborative, iterative process with the Client Team to establish, revise, and/or validate the City of
Bozeman’s organizational vision, mission, long term goals, and standards for prioritization.
Demographic, Fiscal and Economic Assessment: To evaluate the Bozeman community’s growth patterns,
demographics, and fiscal sustainability, the Willdan Team will conduct a trends analysis of key fiscal and economic
variables including, but not limited to: population, households, income, age and education segmentation, labor
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force, payroll, business entities, real property and sales tax base, real estate data, tourism activity, and other
factors to be determined in consultation with the Client Team. These findings will inform the need for public
services with respect to future trends and growth.
Summary of Existing and Pending Service Delivery Plans: To inform the Strategic Plan Vision Statement, the
Willdan Team will conduct a comprehensive review of existing and pending Service Delivery Plans (Transportation
Master Plan, Water Master Plan, Library Strategic Plan, Integrated Water Resources Plan, Transportation Plan,
Community Plan, Economic Development Plan, Downtown Bozeman Improvement Plan, and the Parks,
Recreation, Open Space and Trails (PROST) Plan).
Strategic Plan Consensus Building Workshop and Vision Statement: Willdan Project Manager, Molly McKay, will
conduct a consensus building workshop with select groups/individuals to evaluate the City’s perceived strengths,
weaknesses, opportunities and threats (“SWOT”) according to the issues outlined in the summary of existing and
pending service delivery plans. These topics will inform deliberations regarding the draft and final Vision
Statement to be adopted during the consensus building workshop.
The outcomes of Task 1: Strategic Plan Vision Statement will be the foundation for all future tasks related to the Strategic
Plan process.
Task 2: Methodology and Work Plan
Objective: To design and execute an ongoing Project Management Plan to direct the Project Team’s research,
analysis, stakeholder outreach/public engagement, and client communications throughout the
engagement.
Outputs/Deliverables:
Client Kick-Off Meeting (In Person)
Project Management Plan and Information Request Memorandum
Public engagement plan, possibly incorporating Bozeman’s Online City Hall service
Steering/Advisory Committee Establishment
Monthly Progress Report Conference Calls;
Internal Client Team Meeting: Interim Presentation of Preliminary Findings; and
Internal Client Team Meeting: Final Project Close Out.
Willdan’s activities will be directed by a Project Management Plan (“PMP”) to be developed in consultation with the Client
Team Project Manager and other appropriate City staff at the outset of the engagement.
Upon receipt of the notice to proceed, the Project Team will schedule a kick-off meeting with the City of Bozeman’s Client
Team representatives and other stakeholders. The Project Team will review project goals, existing documentation and
resources, and the proposed deliverables schedule to inform the Project Management Plan that will direct the Project
Team’s research, analysis, stakeholder outreach/public engagement, and client communications throughout the
engagement.
Willdan entirely agrees that for strategic planning to be effective, the active involvement of governmental, private, and
nonprofit sectors is critical at the Steering Committee level. Willdan will work with the Client Team to establish a Steering
Committee to reflect the inclusive interests of the businesses community, educational institutions, faith-based entities,
utilities, and civic groups. Willdan expects that the project initiation phase will include internal and external stakeholder
interviews with the Client Team, and—as appropriate—the wider business, real estate development and investment
community to collect data on real estate market trends and conditions and public service/infrastructure needs.
Accordingly, Willdan will work closely with the Steering Committee who will oversee the overall planning process.
Additionally, the Committee will be tasked with identifying a comprehensive list of people who best reflect the City’s
diversity and interests as part of the public engagement process.
Upon creation of the Steering Committee, Willdan will conduct an initial meeting with representatives of Bozeman City,
and other governmental, private and nonprofit representatives will be held to finalize project scope, tasks, and schedules.
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First and foremost, this meeting will finalize expectations regarding all final deliverables related to the assignment. The
“product” or comprehensive Strategic Plan will be structured to assist in organizing and accessing the resources that will
serve as road map for future action.
Task 3: Public Engagement Meetings and Social Media Outreach
Objective: To engage community stakeholders in Strategic Plan alternatives through a documented public
engagement process and build community consensus and buy-in in the final Strategic Plan.
Outputs/Deliverables:
Private Stakeholder Interviews and/or Focus Groups (up to 50 private and up to five focus group meetings by
topic, to be determined with input from the Client Team)
Public Engagement Meetings (up to three public Stakeholder Meetings by geography or topic, to be determined)
Social Media Outreach (Infographic Fact Sheets and Surveys via City of Bozeman Electronic Town Hall and other
media outlets, i.e., Facebook, Twitter, etc.)
Summary Memorandum of Findings
Willdan, with local support from KLJ, will design and execute a Public Engagement Plan throughout the assignment.
Willdan is highly experienced in community outreach with a wide variety of public and private stakeholders. In an
engagement such as the proposed Strategic Plan, it is expected that there should be three tiers of community outreach:
Private Stakeholder Interviews and/or Focus Groups: One-on-one interviews with strategic partners who will be
actively involved in implementation of the Strategic Plan (up to 50 private and/or up to five focus group meetings
to be completed within the first 90 days of project initiation). The target list will be developed with input from the
Client Team and will be managed by Ms. Molly McKay, Principal Consultant of Willdan’s Washington, DC Office. A
preliminary list of potential “strategic partner” stakeholders include:
o City of Bozeman Economic Development Council
o City of Bozeman Planning Board
o Downtown Bozeman BID and Tourism BID Boards
o Montana State University
o Yellowstone International Airport
o High Tech, Manufacturing, Photonics and Optics, Bioscience, Pharmaceuticals, and Healthcare
Stakeholders
o Local Area Real Estate Brokers/Developers and Business Owners
o Other Stakeholders to be identified by the Client Team
Public Outreach Meetings: Willdan, with local support from KLJ, will conduct up to five (5) interactive work
sessions with stakeholders, as well as present and participate in monthly Strategic Plan Steering Committee
meetings and three (3) City Commission meetings, and a regularly scheduled meeting. Beyond the required
meetings, the Willdan Project Manager will work with City staff to develop communication strategies that will
best engage the various stakeholder groups in meaningful ways that promote accessibility and interactive
feedback.
The Steering Committee presentations will include project update briefings submitted to the Client Project
Manager one week prior to the meetings and will include an agenda and list of interactive questions to be drafted
with input from the client team.
Social Media Outreach: With input from the Client Team, Willdan will design and execute a variety of public
outreach tools to collect feedback regarding the Strategic Plan’s potential key initiatives and priorities. This
feedback may be collected through a combination of Infographic Fact Sheets, a survey tool administered via City
of Bozeman Electronic Town Hall, and/or other media outlets, i.e., Facebook, Twitter, etc.
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Ongoing Outreach: During the planned monthly conference calls, the Project Manager and Client Team will
conduct routine “check-in’s” on outstanding community outreach action items to ensure active follow up on
target contacts and important feedback such as commitments from potential strategic partners.
Willdan staff will manage the meetings, collecting feedback from the public participants to be compiled in a summary
memorandum of findings at the completion of each meeting and at the culmination of the task. These conversations are
critical to gathering stakeholder input to review the Strategic Plan initiatives, with the ultimate goal being to develop an
implementation plan to guide future efforts.
Task 4: Draft Strategic Plan Consensus Building Workshops
Objective: To formulate a Strategic Plan for the City of Bozeman based on the culmination of the baseline fiscal and
economic assessments and public engagement tasks.
Outputs/Deliverables:
Strategic Plan Consensus Building Workshops (up to three)
Draft Strategic Plan
Willdan will plan and facilitate up to three (3) strategic planning sessions including the Steering Committee and public
stakeholders that will involve breakout and interactive discussion about the final proposed strategies/initiatives (the Draft
Strategic Plan), including key elements of the implementation plan such as responsible parties and funding sources.
Based on results of the Draft Strategic Planning meeting, Willdan will provide a summary report to be used in compiling
the final comprehensive Strategic Plan. A final meeting will be held with the Steering Committee to review the summary
report. Willdan will then use the resulting analysis to provide the Steering Committee with a draft copy of the
comprehensive Strategic Plan which will include:
Strategies and initiatives for service delivery to include prioritized projects to implement objectives and goals;
Organizational and institutional resource requirements
Funding sources;
Estimation of time frames on initiatives; and
Performance measures that will be used to evaluate whether and to what extent goals and objectives have been
or are being met.
Following review of the draft and subsequent changes, Willdan will finalize the plan and present copies to the Steering
Committee for distribution. Ultimately, this plan will be structured to ensure create jobs and foster a more sustainable
and diversified community along with economy that will focus on a broad array of manufacturing, service, and tourism
related industries.
The Strategic Plan will serve as a mechanism for coordinating the efforts of individuals, organizations, private industry,
and local governments concerned with Bozeman City’s public service delivery capacity and economic sustainability.
Willdan will provide a prioritization list that has up to 10 Strategic Plan strategies/alternatives, fully supported by a
recommended Implementation Plan for achieving the goals of each strategy.
This Implementation Plan will provide the foundation for Bozeman City’s action steps for the next three to ten years.
Developing a plan that will be acceptable to a majority of stakeholders and that will provide unified direction is a critical
component of this deliverable. Accordingly, the draft Action Plan will be presented at a consensus building Workshop at a
regularly scheduled monthly Steering Committee Meeting to allow for review and comment on the following key
questions:
1. What is the Action Plan’s Vision Statement?
2. What are the Action Plan’s key goals and strategies (ranked by priority for short-, mid-, and long-term
implementation)?
3. What are the expected outcomes of each strategy (qualitative and quantitative)?
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4. Who is responsible for implementation of each strategy? Who are Bozeman City’s key strategic partners required to
successfully implement each strategy? What are these partners’ roles, responsibilities and financial/other
commitments?
5. What are the ongoing monitoring and reporting benchmarks required to measure the successful implementation of
each strategy? What is the source of the data for these benchmarks? Who is responsible for collecting and analyzing
the Strategic Plan benchmarking data throughout plan implementation?
The Strategic Plan will include a detailed implementation program. The strategic planning process will culminate in the
compilation of research, analysis, input from City officials, staff, business leaders, organizations and the City of Bozeman
community into a consolidated draft Strategic Plan to include the following elements:
Implementation Dashboard: the plan will include an implementation matrix that defines short-term (one to
three years), mid-term (three to five years) and long-term (five-plus years) goals, objectives and strategies as well
as performance metrics. Performance metrics include:
o Target deadlines for completion;
o Sources and uses of funding; and
o Institutional and organizational framework (primary organization/agency responsible and key partners that
can assist in carrying out the strategy).
Strategic Plan Dashboard Performance Metrics: the plan will recommend measurable criteria based on readily
available data that the City can use to track and report on its progress in achieving its public service delivery
goals, for example:
Within 45 days prior to the completion of the project, the Project Team will provide drafts of all plan documents for
review and comment by the Client Team. Willdan is skilled in developing high-quality, visual documentation of these
strategy options as a critical component in supporting decision-making and developing a unified direction through
community conversations.
Task 5: Final Comprehensive Strategic Plan and Presentation
Objective: To produce a substantive and comprehensive final report of work performed under the proposed scope
of work and conduct a capstone Work Session with the City of Bozeman Development Services and other
stakeholders.
Outputs/Deliverables: Compiled Strategic Plan
Willdan will present the draft Strategic Plan to the City Commission, Economic Development Council, City Planning Board,
Downtown Bozeman BID Board, Tourism BID Board, and other applicable advisory boards. The team will attend three
public meetings and/or study sessions to be determined in coordination with City staff. The plan shall include the
following:
A comprehensive Vision and Mission Statement and core set of values for the Strategic Plan
A summary of the relevant existing and pending service delivery plans and initiatives that were referenced during
the preparation of the Strategic Plan
The list of stakeholders
Summaries of the SWOT analyses and Consensus Building Workshop
Summary Demographic, Fiscal and Economic Assessment
Summary of Strategic Plan Initiatives
Implementation Plan (including the ongoing reporting/monitoring Dashboard)
Final, written report with appropriate graphics, maps and formatting:
10 copies (9 copies and 1 original) of the final report (Adobe Acrobat readable copies of all documents submitted
on a flash drive device)
Source files for all documents in Microsoft Word and Excel
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Final Report Presentation Work Session with City staff/SP Steering Committee and PowerPoint document
Willdan will prepare and deliver to the City a substantive and comprehensive final report of all work performed under the
proposed scope of work (“Final Report”). The Final Report will be organized according to the above tasks, and will include
all deliverables and documents provided. Each scope task will form separate chapters within the Final Report. This report
will provide a clear, high level road map of concrete recommendations, along with clear accountabilities. It will be
informed by both rigorous analysis, smart growth best practices, and engaging key stakeholders both within the City of
Bozeman and across the broader development and investment community.
We will present, document, and address methodologies and findings during a final project presentation and capstone
Work Session with the appropriate City personnel and other internal and/or public stakeholders to be identified in
consultation with the City.
Subsequent to the final presentation, Willdan will update and revise the final document per direction from the Work
Session. A final approved document including a PDF version will be provided to the City at the conclusion of these
meetings and upon acceptance of the final deliverable by the City. The Final Report will encompass findings from the
analyses described in the preceding scope of work, in a substantive and comprehensive manner, and will include an
Executive Summary and each corresponding deliverable.
Required City of Bozeman Staff Support
To complete our tasks on schedule, we will need the cooperation of City of Bozeman staff. We suggest that the City assign
a key individual as project manager. As the plan is developed, it is expected that the City appointed project manager will:
1) Help resolve policy issues;
2) Coordinate responses to informational requests; and
3) Coordinate review of work products.
To meet the schedule, we will ask for responses to initial information and follow-up requests within five business days. If
there are delays on the City’s part, the City’s project manager shall be immediately contacted to help steer the project
back on schedule.
Willdan will endeavor to minimize the impact on City staff in the completion of this project. Willdan will rely on the
validity and accuracy of the Authority’s data and documentation to complete our analysis. Willdan will rely on the data as
being accurate without performing an independent verification of accuracy, and that we will not be responsible for any
errors that result from inaccurate data provided by the client or a third party.
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Project Timeline
The following is a proposed project timeline or work plan to illustrate how the project team will complete the required deliverables based upon a start date of
January 11, 2016 and completion by July 16, 2016.
General project timeframes by task are summarized below. A specific project timeline will be developed following consultation with, and in concert with, the
Client Team.
Work Plan
Project Month - 2016 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7
Assumed Project Start/End Month (Subject to Contract Execution)January February March April May June July
Task 1: Strategic Plan Vision Statement
Task 1.1:Demographic, Fiscal and Economic Assessment ❶
Task 1.2:Summary of Existing and Pending Service Delivery Plans ❷
Task 1.3:Strategic Plan Consensus Building Workshop and Vision Statement ❸
Task 2: Methodology and Work Plan
Task 2.1:Project Management Plan and Information Request Memorandum ❹
Task 2.2:Public Engagement Plan ❻
Task 2.3 Ongoing Client Communications and Status Update Meetings/Calls ❼❼❼❼❼❼❼
Task 3: Public Engagement Meetings and Social Media Outreach
Task 3.1:Private Stakeholder Interviews and/or Focus Groups (up to 50/5)❽❽❽
Task 3.2:Public Outreach Meetings (up to 3)❾❾❾
Task 3.3:Social Media Outreach ❿❿❿
Task 3.4:Summary of Findings ⓫
Task 4: Draft Strategic Plan Consensus Building Workshops
Task 4.1: Strategic Plan Consensus Building Workshops (up to three)⓬
Task 4.2:Draft Strategic Plan ⓭
Task 5: Final Comprehensive Strategic Plan and Presentation
Task 5.1:Final Strategic Plan ⓮
Task 5.2:Final Presentation ⓯
❶= Project Meeting or Deliverable Milestone
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Similar Project Experience and References
Provided on the following pages are project summaries of comparable engagements demonstrating experience in market
analysis, visioning and strategic plans prepared by the project team. We are proud of our reputation for customer service,
and encourage you to contact our past clients in regard to our commitment to excellence.
These project examples illustrate the Willdan Team’s specific and highly technical experience required to successfully
address the needs of the City of Bozeman’s proposed Strategic Plan.
Kalispell Core Area Market Analysis and Economic Development Strategic Plan
Willdan recently completed a market and financial feasibility analysis specific to the preparation of an economic
development strategic plan related to the expansion of the City of Kalispell’s existing Tax Increment Financing District. The
objective of this analysis is to fund the removal of existing freight rail line from the historic downtown Main Street area to
a newly constructed rail-served industrial park.
The Willdan Team was responsible for developing high quality market and economic analytics to inform the final
Implementation Plan and also supported a wide range of public outreach efforts throughout the year-long public planning
effort for a community located at the gateway to Glacier National Park, a destination for more than three million tourists
annually. The plan includes the installation of a two-mile linear park and related community amenities, a business
relocation and retention strategy, and a funding/financing implementation strategy to ensure successful implementation
of the Kalispell Core Area Plan.
Client Contact:
Katharine Thompson, M.P.A.
Community Development Manager
City of Kalispell
201 First Avenue East
Kalispell, MT 59901
Tel #: (406) 758-7713
Email: kthompson@kalispell.com
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Glacier Industrial Park Development Advisory Services and Transaction Support
In 2013, Flathead County Economic Development Authority (“FCEDA”), in partnership with the City of Kalispell retained
Willdan to prepare the Core Area Revitalization plan, a study focused on creating jobs and economic growth
opportunities, improving public safety, and the development of affordable housing in Kalispell, Montana.
Upon conclusion of the Core Area Revitalization Study, FCEDA retained Willdan to:
Source capital necessary to complete the Project,
Negotiate leases with potential tenants at Glacier Rail Park,
Acquire property in the Core Area,
Provide project management,
Provide New Markets Tax Credit advisory services, and
Dispose of the acquired properties for redevelopment
At the center of this plan lies the Glacier Rail Park. Glacier Rail Park (the “Project”) is the multi-phase development of a 40-
acre full service multi-modal and industrial rail park located in the outskirts of Kalispell. The Project will enhance the
region’s access to national and international markets and expand operations for current and new rail-served businesses,
while also creating new regional job opportunities for Kalispell residents.
The Project also includes the removal of the “Iron Curtain,” a public safety hazard which bifurcates the city, blocks public
safety vehicles and access to critical care facilities, limits vehicular and pedestrian connectivity, limits redevelopment
opportunities and prohibits the expansion of businesses in the Core Area of Kalispell.
The Project will construct 17,140 linear feet of new rail track, 28 acres of leasable industrial space, improve 11,200 feet of
access road, and create a safer downtown and residential corridor along Montana Highway 2.
Client Contact:
Kellie Danielson, CEcD
President/CEO
Montana West Economic Development/Flathead Valley Economic Development Authority
Kalispell, Montana 59901
406.257.7711
kellie@dobusinessinmontana.com
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City of Fort Lauderdale, FL – Citywide Economic Development Strategic Action Plan
The City of Fort Lauderdale’s Sustainable Development Department retained Willdan to develop the City’s Five-Year
Economic Development Strategic Action Plan. Following substantial community outreach including more than 100
individual stakeholder interviews and seven public meetings, the project team undertook a series of analyses, including:
an Economic Base Profile; an Economic Development Issues Identification and Prioritization Analysis; and an Economic
Benchmarking Assessment comparing key statistical trends in Fort Lauderdale to nine competitive cohort cities. To inform
the policy recommendations resulting from the economic performance indicators, Willdan conducted substantial national
case study research on best practices in transit oriented development, business incubation/acceleration, and retail
retention and recruitment.
The results of these analyses directed the identification of 10 Economic Development Strategic Action Plan Initiatives
related to entrepreneurial business development/job creation, retail recruitment and retention, small business loan
funding, economic development placemaking marketing/branding public transportation/parking facility advocacy.
Implementation of the EDSAP is guided by an organizational and institutional assessment, a detailed annual funding plan,
and an “Annual Economic Development Benchmarking Dashboard” to track progress in achieving the Plan’s targeted
outcomes.
Client Contact:
Al Battle Jr.; Deputy Director, Department of Sustainable Development
914 NW 6th Street, Suite 200
Fort Lauderdale, FL 33311
Tel #: (954) 828-8952
Email: abattle@fortlauderdale.gov
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Metropolitan Washington Airports Authority 2012 Economic Impact Study
Willdan Financial Services quantified the impact of the Washington Reagan National Airport, Dulles International Airport,
the Dulles Toll Road, and the Metrorail Silver Line expansion. The study included the calculation of direct, indirect and
induced economic impacts of employment, payroll (labor income), visitor spending, state and local taxes, and business
revenue. Economic impacts were calculated by the IMPLAN® (IMpact analysis for PLANning) economic impact modeling
system – considered the industry standard for aviation economic impact studies. IMPLAN Group LLC’s software tools and
region-specific data are the basis for multi-regional Social Accounting Matrices (SAMs) and Multiplier Models of national,
state, regional and local economies.
The study concluded that the Airports Authority's operations generated more than 380,000 jobs and $15.4 billion in
payroll in the region in 2012 - equivalent to 4.5 percent of the Metropolitan Washington Area's GDP. The 2012 study was
accepted by MWAA’s Board of Directors in May 2014 and was subsequently submitted to the Washington Metropolitan
Council of Governments and the Virginia Department of Aviation to serve as a resource to inform decisions and
investments of public and private entities within the Washington Metropolitan region.
Client Contact:
Margaret A. Bishop
Community Relations Manager
Metropolitan Washington Airports Authority
1 Aviation Circle, MA-16
Washington, DC 20001-6000
Tel #: (703) 417-8383
Email:margaret.bishop@mwaa.com
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Cost Proposal
Per the RFP instructions, provided below is Willdan’s all-inclusive fee for the scope of work described herein. The proposed lump sum fee or scope of work for all
outlined services is $123,444. The fee quoted below includes all labor, travel, lodging, materials, printing, overhead and profit and any other expenses associated
with this engagement. The Project Manager is available to discuss potential modifications to any aspect of the proposed cost proposal and related deliverables
during contract negotiations.
Fee Breakdown
The table below provides a breakdown of the total price quoted on the prior page by task and team member.
Staff Role by Task Managing
Principal
Principal/
Project
Manager
Market Analyst
Regional
Technical
Advisor
Local Public
Engagement
Support
Local Public
Engagement
Support
Staff Support
(Engineer II)
Total Hours
by Task
Total Cost by
Task
% of
Total
Total Project
Hours &
Fees
Work Plan J. Edison M. McKay E. Vilchis J. Ometeotl J. How F. Sanderson S. Eslinger
Task 1: Strategic Plan Vision Statement 21%24,104$
Task 1.1:Demographic, Fiscal and Economic Assessment 4 8 40 4 0 0 0 56 8,780$
Task 1.2:Summary of Existing and Pending Service Delivery Plans 0 24 0 4 4 4 8 44 7,420$
Task 1.3:Strategic Plan Consensus Building Workshop and Vision Statement 8 16 0 0 8 8 8 48 7,904$
Task 2: Methodology and Work Plan 9%10,640$
Task 2.1:Project Management Plan and Information Request Memorandum 4 8 0 0 4 4 0 20 3,464$
Task 2.2:Public Engagement Plan 0 8 0 0 4 0 0 12 2,064$
Task 2.3 Ongoing Client Communications and Status Update Meetings/Calls 4 8 4 4 4 4 4 32 5,112$
Task 3: Public Engagement Meetings and Social Media Outreach 39%44,584$
Task 3.1:Private Stakeholder Interviews and/or Focus Groups (up to 50/5)16 32 0 16 32 32 32 160 24,336$
Task 3.2:Public Outreach Meetings (up to 3)0 32 0 0 16 16 16 80 12,608$
Task 3.3:Social Media Outreach 0 16 0 0 0 0 0 16 3,200$
Task 3.4:Summary of Findings 4 8 0 0 4 4 8 28 4,440$
Task 4: Draft Strategic Plan Consensus Building Workshops 20%22,584$
Task 4.1: Strategic Plan Consensus Building Workshops (up to three)16 24 0 0 16 16 0 72 12,256$
Task 4.2:Draft Strategic Plan 4 40 0 0 8 4 0 56 10,328$
Task 5: Final Comprehensive Strategic Plan and Presentation 10%11,532$
Task 5.1:Final Strategic Plan 4 16 8 4 8 4 0 44 7,268$
Task 5.2:Final Presentation 8 8 0 0 4 4 0 24 4,264$
Subtotal Hours 72 248 52 32 112 100 76 692 100%
Hourly Rate 200$ 200$ 145$ 145$ 116$ 150$ 122$
Total Labor 14,400$ 49,600$ 7,540$ 4,640$ 12,992$ 15,000$ 9,272$ 113,444$ 113,444$
Expenses - Air travel, ground transport, lodging (estimated 10 Person Trips @ $700 each), printing, express mail, and other direct project expenses:10,000$
Total Fixed Price Fee (Including Reimbursable Expenses)123,444$
Willdan KLJ
Bozeman, MT
Strategic Plan
A-1
Appendix
Qualifications, Project Team, and Resumes
Willdan possesses sufficient staff depth to perform the services delineated within the City’s RFP on time and within
budget. Willdan has assembled a senior level Project Team of subject matter experts with more than a decade of
experience working together, supporting both public and private clients across the United States to implement strategic
plans and provide market and fiscal analysis, finance strategies, and strategic municipal policy support. The proposed
Project Team has collectively worked in 36 states and 40 countries. The team’s key resources are comprised of the
following individuals.
Molly McKay, Principal Consultant: Project Manager and Strategic Planning Lead;
James Edison, Managing Principal: Public Finance Expert;
Ernesto Vilchis, Project Director: Senior Market Analyst;
Jose Ometeotl, Regional Technical Advisor;
John How, KLJ Planner and Local Public Engagement Lead;
Forrest Sanford, KLJ Planner and Local Public Engagement Support; and
Shari Eslinger, KLJ Engineer and Local Public Engagement Support.
These individuals specialize in the nexus between public and private development, with particular expertise in evaluating
market opportunities, structuring public-private partnerships, and providing economic development strategic planning
services to municipalities, and to state, regional, and national governments.
The proposed Project Manager, Ms. McKay, has more than 20 years of experience in a wide variety of municipal
management and strategic planning capacities in the US and abroad. Ms. McKay also has recent experience in the region
having served as lead financial and economic advisor to the Kalispell, Montana Core Area Implementation Plan.
Willdan Financial Services
Willdan Financial Services (“Willdan”) is one of four operating divisions within Willdan Group, Inc. (“WGI”). WGI provides
technical and consulting services that ensure the quality, value and security of our nation’s infrastructure, systems,
facilities, and environment. The firm has been a consistent industry leader in providing all aspects of municipal and
infrastructure engineering, public works contracting, public financing, planning, building and safety, construction
management, homeland security, and energy efficiency and sustainability services.
Established on June 24, 1988, Willdan Financial Services, a wholly owned corporation, is one of the largest public sector
financial consulting firms in the United States. Since that time, we have helped over 800 public agencies successfully
address a broad range of financial challenges, such as financing the costs of growth, generating revenues to fund public
services, and fostering the economic sustainability of communities nationwide.
Our staff of over 70 full-time employees supports our clients by conducting year-round workshops and on-site training to
assist them in keeping current with the latest developments in our areas of expertise. Furthermore, Willdan as a whole is
composed of over 600 employees, including a cadre of public finance experts.
Local Teaming Partner – KLJ
The Willdan Team’s local public engagement tasks will be supported by KLJ. Willdan and KLJ established a productive
working relationship in 2013 while consulting for the City of Kalispell, Montana related to the Core Area Plan’s initiative to
relocate the active freight rail line to a new rail served industrial park.
Since 1938, KLJ has provided multi-disciplinary engineering-based solutions for national, large-scale operations, with the
local expertise to drive projects forward and deliver successful results. Our strong regional connections, in-depth local
knowledge, responsive personal service and industry experience create strategic advantages.
Bozeman, MT
Strategic Plan
A-2
Currently, KLJ maintains 24 offices with more than 750 professionals providing services to the upper Great Plains, Rocky
Mountain region and Florida. KLJ is an employee-owned company that is constantly evolving to better meet the needs of
our clients.
KLJ maintains a focus on innovation, helping clients succeed by developing lasting infrastructure that responds to the
social, civic and economic needs of our communities. We are organized into nine functioning markets: transportation,
government/municipal, rail transportation, water resources, energy, oil and gas, environmental, telecommunications and
aviation. We also have technical workgroups including survey, right-of-way (ROW), structural, environmental and
construction management. Structuring our company according to specific areas of expertise creates a highly collaborative
project management environment. As we work with communities across the upper Great Plains and the Rocky Mountains
to plan infrastructure improvements and facilitate positive growth, we are able to dedicate professionals with progressive
experience tailored to move each project forward.
KLJ in Bozeman
The KLJ Bozeman office continues to expand. The Bozeman office currently has professionals with expertise ranging from
structural engineering to archaeology to land use planning and civil site design. Having these types of professionals locally
not only provides KLJ in-house local expertise, but also connections throughout the region to provide assistance and
prospective.
John How, AICP will provide project support for local outreach efforts and his staff will assist with meeting preparation,
compiling notes and creating necessary visuals. John is the office manager for the Bozeman office and has more than eight
years of experience working with communities throughout Montana and North Dakota as an AICP-certified planner.
Team Composition and Project Management
The proposed Project Manager, Molly McKay, will serve as the day-to-day client point of contact. The engagement will be
further supported by James Edison, Principal-in-Charge, to provide quality assurance/quality control oversight. The initial
demographic, fiscal and economic assessment will be performed with staff support from Ernesto Vilchis, Willdan Market
Analyst. The Public Engagement Plan will be directed by Molly McKay, with local support provided by KLJ staff John How,
Forrest Stanford and Shari Eslinger.
Willdan staff, James Edison and Jose Ometeotl, will attend selected focus group meetings to provide technical expertise
on targeted topics to be determined in consultation with the Client Group. Additional staff support is available to execute
public meeting events if needed. The Project Manager will deliver project status update briefings to the City Commission
and/or Strategic Plan Steering Committee to solicit input on draft and final Strategic Plan according to the project timeline
and deliverable schedule.
Profiles and resumes for the selected team members are provided on the following pages for your review.
City Commission
and/or Strategic Plan
Steering Committee
City of Bozeman
Project Manager
James Edison,
Principal-in-Charge
and Public Finance
Advisor
Molly McKay, Project
Manager and
Strategic Planning
Lead
Jose Ometeotl,
Regional Technical
Lead
Ernesto Vilchis,
Market Analyst
John How, KLJ
Planner and Local
Public Engagement
Lead
Forrest Sanford, KLJ
Planner and Local
Public Engagement
Support
Shari Eslinger, KLJ
Engineer and Local
Public Engagement
Support
Bozeman, MT
Strategic Plan
A-3
Molly McKay
Principal Consultant
Ms. McKay possesses more than 20 years of economic policy and planning experience providing
consulting services to public and private clients. Ms. McKay frequently serves as an economic
advisor to municipalities, investors and developers, engineering firms, nonprofit organizations,
and others throughout project feasibility, financing and implementation.
In this advisory role, Ms. McKay conducts research and scenarios testing to evaluate market and
economic conditions, measure the public costs and benefits of innovative financing and
incentive mechanisms, and provide strategic planning support services related to inform
economic development policy frameworks. Ms. McKay designs and develops custom-built
multivariate financial, fiscal and economic modeling tools (IMPLAN, RIMS, REMI), industry cluster
analyses, local and regional economic competitiveness benchmarking, project management
plans, case studies, best practices, evaluation summaries, and project implementation,
monitoring and reporting plans.
Ms. McKay frequently serves government entities across all public service sectors including
planning and economic development departments, utilities, housing authorities, transit
agencies, airport authorities, and global development institutions. Clients include the US
Department of Housing and Urban Development, the General Services Administration, US
Agency for International Development, The World Bank/International Finance Corporation,
Jamaica Ministry of Tourism, City of Miami Department of Planning and Economic Development,
City of Fort Lauderdale Sustainable Development Department, Niagara Frontier Transportation
Authority, and the Metropolitan Washington Airports Authority.
In the past 15 years, she has completed more than 100 economic development and strategic
planning analyses in 21 states and abroad in 15 countries in the Middle East, Africa, and the
Caribbean, triggering more than $5 billion in economic development investment. Economic
fieldwork includes Aruba, Barbados, Jamaica, Martinique, Mexico, St. Maarten/St. Martin, St.
Croix, St. Lucia, Puerto Rico, and Trinidad and Tobago.
Her professional skills are anchored by an educational foundation in applied economic analysis,
commercial financing structures, urban planning, sustainable environmental management and
cutting-edge economic policy tools. Before joining Willdan, she was a senior associate of the
Economic Policy and Planning Practice of AECOM Economics (formerly Economics Research
Associates) from 2003 to 2012; a manager in the Real Estate Consulting and State and Local Tax
Practices of Ernst & Young (1997 to 2002), and program coordinator, ULI-the Urban Land
Institute’s International and Advisory Services (1995 to 1997) and the International City/County
Management Association (ICMA) in Washington, DC (1992 to 1995). Ms. McKay is a member of
the ULI Redevelopment & Reuse Council and the ULI Regional Land Use Leadership Institute.
Project Experience
Kalispell Core Area Market Analysis & Implementation Plan: Prepared a market analysis and tax
increment financing plan related to the expansion of the City’s existing Tax Increment Financing
District to fund the removal of existing freight rail from the historic Downtown Main Street to a
newly constructed rail-served industrial park. Responsible for developing high quality market
and economic analytics to inform the final Implementation Plan and to achieve public support
for TIF plan. The plan includes the installation of a two-mile linear park and related community
amenities, a business relocation and retention strategy, and a funding/financing implementation
strategy to ensure successful implementation of the Kalispell Core Area Plan.
Education
Master of Arts (Honors),
International Politics &
Economics, University of Exeter,
Devon, UK
Bachelor of Arts (Honors),
University of Kansas
Study Abroad: University of
Law, Economics & Political
Science, Aix-Marseille III, Aix-
en-Provence, France and the
Guadalajara Language
Institute, Mexico
Post-Graduate Studies: Real
Estate Finance & Investment,
Johns Hopkins University Cary
Business School, Washington,
DC
Accreditation
Certification in Social Science
Research Methodology,
University of Exeter, Devon, UK
Areas of Expertise
Economic Development
Strategic Plans
Fiscal and Economic Impact
Analysis
Public/Private Financing Plans
Infrastructure Financing Plans
Tax Increment Financing
District Formation
Real Estate Advisory Services
Reuse & Redevelopment Plans
Affiliations
American Planning Association
International Economic
Development Council (IEDC)
ULI – the Urban Land Institute
20 Years Experience
Bozeman, MT
Strategic Plan
A-4
City of Fort Lauderdale, FL – Citywide Economic Development Strategic Action Plan: Served as
Project Manager for the City’s Economic Development Strategic Action Plan. This citywide
Economic Development Strategic Action Plan includes an Economic Development Profile Report;
as well as identification and recommendation of potential citywide economic development
incentive programs for business retention and recruitment that are applicable to six geographic
sub-areas and citywide; an entrepreneurial development and empowerment strategy, a targeted
industry growth strategy, and a retail recruitment strategy; an implementation program and
“economic dashboard” of benchmarking metrics to measure the success of strategies and
initiatives; and sources and uses of funding to support plan implementation (grants and other
alternative funding opportunities allocated to each of the plan’s five-year implementation
horizon).
City of Miramar, FL – Economic Development Strategic Plan: Currently serving as Project
Manager for the City’s Economic Development Strategic Plan. This planning effort includes the
preparation of a baseline Economic Profile Report; as well as identification and recommendation
of potential citywide economic development incentive programs for business retention and
recruitment that are applicable to three geographic sub-areas and citywide;, a targeted industry
growth strategy, a cultural arts and historic district placemaking strategy; an implementation
program and “economic dashboard” of benchmarking metrics to measure the success of
strategies and initiatives; and sources and uses of funding to support plan implementation
(grants and other alternative funding opportunities allocated to each of the plan’s five-year
implementation horizon).
Village of South Nyack/Rockland County, NY – Economic Sustainability Plan: Currently serving
as Project Manger and lead fiscal analyst on the preparation of an Economic Sustainability Plan
to address the impact of the pending demolition and relocation of the Tappan Zee Bridge in the
Hudson River Valley in New York. Providing key fiscal and economic analysis and implemenation
planning services to ensure the reversion of land by the New York Thruway Authority to the
Village of South Nyack is redeveloped into a net tax positive asset for the community over the
long term. The redevelopment plan includes 14 acres for public and private use, a shared use
path with regional connectivity, a future Bus Rapid Transit station, and a commuter parking
facility.
Niagara Frontier Transportation Authority (NFTA) Consolidation Study Market Analysis & Cost-
Benefit Analysis: Conducted a cost-benefit analysis of the potential relocation/disposition of
seven properties owned and operated by the Niagara Frontier Transportation Authority.
Identified operational benefits, cost savings and strategies for operating facilities along with
procedures for implementing multiple consolidation scenarios. The analysis included
assessments of historic transit-oriented redevelopment and reuse potential of the DL&W
Terminal building, operating costs, fiscal and economic impact, and local real estate market
conditions.
Belair Road Corridor Comprehensive Market and Economic Development Plan: Served as
Project Manager on a team with a deep cross-section of expertise in economic development,
transportation, and urban design among other disciplines to implement recommendations from
the Urban Land Institute Baltimore Regionalism Committee’s Technical Assistance Panel related
to the “Corridor Revitalization Framework Strategy for Belair Road” to provide market and
financial feasibility analysis of: priority redevelopment nodes; priority redevelopment
opportunity sites; linkages between nodes economic development strategies; and a sense of
place/branding strategies that incorporate residential neighborhood conceptual design,
streetscape and transportation strategies, and a range of public policy strategies. The study also
evaluated existing public incentives as precursors to readiness for private sector development
and made specific economic development plan implementation recommendations.
M. McKay
Resume Continued
Bozeman, MT
Strategic Plan
A-5
James Edison
Managing Principal
Mr. Edison specializes in the nexus between public and private, with particular expertise in
public-private partnerships, and the benefits of economic development to municipalities and
state, provincial, regional and national governments. He has particularly deep expertise in land
use economics with a specialty in finance and implementation, including fiscal impact and the
public and private financing of infrastructure and development projects, both in the United
States and internationally. He has worked for both public and private clients on the
implementation of public-private transactions, providing market and fiscal analysis, finance
strategies, and negotiation support. His public sector experience includes local and regional
economic impact studies, fiscal impact evaluations, new government formation strategies, and
the creation of impact fees, assessments and special taxes to fund infrastructure and public
facilities. Mr. Edison has conducted numerous evaluations of the economic and fiscal impact of
specific plans, and consulted on a wide variety of land use planning topics related to community
revitalization and the economic and fiscal impacts of development. He has evaluated markets for
entire new towns as well as for individual proposed residential, retail, entertainment, office,
R&D, hotel and mixed-use projects throughout the western United States and abroad.
As a former bond attorney, Mr. Edison understands the legal underpinnings and technical
requirements of public financing instruments, and has advised both public and private clients on
the use of individual instruments and the interaction between those instruments and the needs
of developers and project finance. He has also conducted project feasibility studies for a wide
range of development, often in connection with community revitalization or expansion efforts.
He has conducted fiscal impact evaluations in a wide range of contexts, including specific plans,
individual development projects, community revitalization programs, annexations and
government reorganizations.
Project Experience
City of New Haven, CT – Economic Impact Analysis: Mr. Edison served in the role of project
manager for this engagement, which involved the redevelopment of the site of the former New
Haven Coliseum. The project required building an economic impact model that included an
estimate of the direct, indirect and induced impacts (employment and economic activity) of the
project’s construction and ongoing operations. Mr. Edison prepared a report and tables that
documented the estimated impacts of the project, along with an explanation of each calculation
and assumption. To wrap up the engagement, Mr. Edison presented the final report at a meeting
with the Board of Aldermen.
City of Fort Lauderdale, FL – Citywide Economic Development Strategic Plan: Mr. Edison served
in the role of Senior Public Incentives Advisor for the City’s economic development strategic
plan. This citywide Economic Development Strategic Plan includes an Economic Development
Profile Report; as well as identification and recommendation of potential citywide economic
development incentive programs for business retention and recruitment that are applicable to
six geographic sub-areas and citywide; an entrepreneurial development and empowerment
strategy, a targeted industry growth strategy, and a retail recruitment strategy; an
implementation program and “economic dashboard” benchmarking metrics to measure the
success of strategies and initiatives; and sources and uses of funding to support plan
implementation (grants and other alternative funding opportunities allocated to each of the
plan’s five-year implementation horizon).
Education
Juris Doctorate, Boalt Hall
School of Law, University
of California, Berkeley
Master of Public Policy,
Richard and Rhoda
Goldman School of Public
Policy, University of
California, Berkeley
Bachelor of Arts, magna
cum laude, Harvard
University
Professional Registrations
Member of State Bar,
California
Licensed Real Estate
Broker, California
Affiliations
Council of Development
Finance Agencies
CFA Society of San
Francisco
Congress for the New
Urbanism
Urban Land Institute
Seaside Institute
International Economic
Development Council
15 Years Experience
Bozeman, MT
Strategic Plan
A-6
City of Kalispell, MT – Core Area Market Analysis & Economic Development Strategic Plan: Mr.
Edison served in the role of senior advisor for this engagement. The objective of this project was
to map out the redevelopment of the area, which is a regional center within the State of
Montana, addressing the needs of the community while focusing upon achievable results. This
project required considerable public outreach, as well as the development of a SWOT analysis.
County of Monterey, CA – East Garrison Specific Plan Financing and Implementation: East
Garrison, located on the easternmost portion of Fort Ord (the former United States Army post in
Monterey County), consisted of approximately 1,400 residential units, including single family
detached, town homes, apartments, affordable housing, a town commercial center, and arts
facilities. Mr. Edison assisted the developer and the County with a wide range of financing issues,
including the availability and structuring of public finance, fiscal mitigation measures, economic
impacts, the implementation of affordable housing, and the negotiation of business terms
between the developer and the County. He also assisted the developer in negotiations with the
Fort Ord Reuse Authority over the base wide capital improvement program and the structuring
of the payment of impact fees generated by the development.
Niagara Frontier Transportation Authority (NFTA) Consolidation Study Adaptive Reuse Market
Analysis & Cost-Benefit Analysis: Conducted a cost-benefit analysis of the potential
relocation/disposition of seven properties owned and operated by the Niagara Frontier
Transportation Authority. Identified operational benefits, cost savings and strategies for
operating facilities along with procedures for implementing multiple consolidation scenarios.
The analysis included assessments of historic transit-oriented redevelopment and reuse
potential of the DL&W Terminal building, operating costs, fiscal and economic impact, and local
real estate market conditions.
City of Redding, CA – Oasis Towne Center Financing and Fiscal Analysis: Hired by the Levenson
Development Company (LDC) to assist with an economic and fiscal impact study and a financing
plan for the Oasis Towne Center; a retail development of approximately one million square feet
in Redding, California. Mr. Edison advised LDC on how to structure the financing of the
development in order to provide public benefits from the project and minimize the need for
public resources. He prepared an economic and fiscal analysis and negotiated a series of service
plans and fiscal mitigation measures with the City. Mr. Edison also prepared a financing plan for
infrastructure needed not only for the immediate project but also for development within the
entire Oasis Road Specific Plan area.
City of Foster City, CA – Gilead, Chess Drive, and Mirabella Fiscal Impact Studies: The City of
Foster City hired Mr. Edison to provide an evaluation of the fiscal impact of three specific plans.
He evaluated the impact on services of each plan, the anticipated new revenues and
expenditures, and the necessity for new public facilities to serve the projects.
City of Foster City, CA –Pilgrim-Triton Area Economic and Fiscal Impact Analysis: The City of
Foster City engaged Mr. Edison to provide an analysis of the fiscal impacts of the development of
the proposed Pilgrim-Triton Specific Plan. He provided an examination of the fiscal implications
of a range of project alternatives, including the effects on the City’s General Plan and services
needed for new development within the Specific Plan area.
City of Vallejo, CA – Costco Expansion Urban Decay, Economic, and Fiscal Impact Analysis: In
response to the request of the City of Vallejo, Mr. Edison examined the economic impact of a
proposed expansion of an existing Costco. The analysis included projections of the impact on
sales tax, employment, property tax and the net impact to the City’s budget. Based on the
analysis, the City Planning Commission approved the Costco expansion.
J. Edison
Resume Continued
Bozeman, MT
Strategic Plan
A-7
Ernesto Vilchis
Project Director
Mr. Vilchis has served local government and assisted developers through the provision of
financial economic consulting. With over 10 years of professional experience, his areas of
expertise include community and economic development, land use planning, affordable housing
and transit oriented development, and neighborhood revitalization. Mr. Vilchis also possesses
experience in regard to the structuring of ground leases and joint development agreements.
Mr. Vilchis will draw upon past peer review engagements that involved the assessment of the
financial feasibility of developer proposals for approximately 450 residential units in a specific
San Francisco neighborhood. Another similar engagement he conducted for the City of Oakland
required an analysis of the financial feasibility of a proposed 102 market-rate housing
development.
Before joining Willdan, Mr. Vilchis was a senior associate with Keyser Marston Associates from
2010 to 2012. In this role he provided consulting services to local governments in a wide variety
of areas including structuring their ground leases, joint development agreements, disposition of
surplus property or the provision of public financing. A highlight of his project experience is
outlined below.
Assess financial feasibility of retail component for the planned Transbay Transit Station in
San Francisco, California.
Develop financial model to assess the fiscal impact of a proposed Infrastructure Finance
District in the Rincon Hill Neighborhood in San Francisco, California.
Evaluate the financial feasibility of a developer’s proposal to redevelop a historic theater in
downtown Woodland, California, and a mixed-use complex in Downtown Santa Rosa,
California.
Review financial feasibility of developer proposals for 400-500 residential building in South
of Market Neighborhood in San Francisco, California.
Conduct a market study of the retail sector and project demand for commercial space for
the City of Union City’s (California) Intermodal Transit Station.
Mr. Vilchis also was employed by AECOM (formerly Economics Research Associates) from
2008 to 2010. In the role of associate, he provide consulting services to local governments
and private developers in the areas of community and economic development, land use
planning, affordable housing and transit oriented development, and neighborhood
revitalization. An overview of his project experience in this role is outlined below.
Conducted market assessment and financial analysis for the potential development of
Laguna Caren, a 1,000 acre site, in the outskirts of Santiago, Chile.
Project retail and residential demand for the redevelopment plan of downtown Salinas,
California.
Assist the City of Pittsburg, California in the development of their affordable housing
strategy by assessing affordable housing supply and demand, identifying challenges and
opportunities for the development of affordable housing in the area.
Conduct fiscal impact analysis of a proposed 100 acre development in the City of Grass
Valley, California.
Education
Dual Masters in Public
Affairs and Urban and
Regional Planning,
Woodrow Wilson School
at Princeton University
Bachelor of Arts,
University of California,
Berkeley
20 Years Experience
Bozeman, MT
Strategic Plan
A-8
Education
Master of Planning in
Community and Local
Economic Development;
University of Southern
California, Los Angeles
Bachelor of Science in City
and Regional Planning, with
a Concentration in US Latino
Studies;
Cornell University,
Ithaca, New York
Professional Affiliations
California Redevelopment
Association
American Planning
Association
International Council of
Shopping Centers
Massachusetts Certified
Public Purchasing Official
Southern California
Planning Congress
(Former Board Member)
9 years Experience
Jose Ometeotl
Senior Project Manager
Mr. Ometeotl specializes in real estate and redevelopment/planning consulting services for
public agencies, including the Montana communities/organizations of Kalispell, Evergreen,
Flathead County, Flathead County Economic Development Authority and Montana West
Economic Development. These services extended to redevelopment plan adoptions and
amendments, five-year implementation and ten-year housing compliance plans, bond financing
consultant reports, multiple property acquisitions, analysis of large commercial and mixed-use
residential projects, housing rehabilitation, and the drafting of DDAs and OPAs. In addition, he
has served as a senior-level staff member for two redevelopment consulting firms in California
where he provided research, document preparation, financial analysis, and project management
and implementation services for public agencies. Mr. Ometeotl has also served as a community
development planner for the Pioneer Valley Planning Commission and the University of Southern
California’s Center for Economic Development.
Before joining Willdan, Mr. Ometeotl held a principal position with The Ometeotl Group. While
there, he designed and implemented comprehensive acquisition and development strategies for
communities throughout the western United States. He has also facilitated the financing and
structuring of several New Market Tax Credit transactions, and coordinated and served as fiscal
consultant for tax allocation bond issuances throughout California. In addition, Mr. Ometeotl
negotiated in excess of $3 billion in real estate development transactions, whereby he
conducted the pro forma analysis; led the negotiation team; and coordinated a network of
support, assistance, and ongoing training to clients and staff.
Project Experience
Core Area Market Analysis & Economic Development Strategic Plan – City of Kalispell, MT: Mr.
Ometeotl served in the role of redevelopment advisor for this engagement. The objective of this
project was to map out the redevelopment of the area, which is a regional center within the
State of Montana, addressing the needs of the community while focusing upon achievable
results. This project required considerable public outreach, as well as the development of a
SWOT analysis.
Glacier Industrial Park Development Advisory Services – Kalispell, MT: The Montana West
Economic Development Authority retained Mr. Ometeotl upon conclusion of the Core Area
Revitalization Study, to: source capital necessary to complete the Glacier Industrial Park project;
negotiate leases with potential tenants at Glacier Rail Park, acquire property in the Core Area;
provide project management; provide New Markets Tax Credit advisory services, and dispose of
the acquired properties for redevelopment.
Azusa/Arrow Redevelopment – Azusa, CA: The City of Azusa Redevelopment Agency engaged
Mr. Ometeotl to acquire a development site. Subsequent to the acquisition of this site, Mr.
Ometeotl solicited and retained a regional site retailer, as well as a full-service sit-down
restaurant. The site is presently under construction.
Citrus Crossing Redevelopment – Azusa, CA: The City of Azusa Redevelopment Agency engaged
Mr. Ometeotl to negotiate and facilitate the redevelopment a 25-acre shopping center. Mr.
Ometeotl worked closely with the developer to secure such anchor tenants as Fresh & Easy,
Ross, Regency Theatres, and CVS. Mr. Ometeotl also negotiated agreements with other tenants,
including Applebee’s, Pinkberry, Chipotle, Panda Express, and Jamba Juice. To accommodate new
housing and continuous traffic throughout the site, the development was designed in a
horizontal mixed-use format.
Bozeman, MT
Strategic Plan
A-9
Downtown Revitalization – Azusa, CA: The City of Azusa Redevelopment Agency engaged Mr.
Ometeotl to undertake the rehabilitation and tenant solicitation of several downtown parcels
owned by the Redevelopment Agency. Mr. Ometeotl successfully located a medical service
provider and two full-service sit-down restaurants in the downtown area.
Economic Development Loan Program – Azusa, CA: Utilizing CDBG funds, the City of Azusa
Redevelopment Agency engaged Mr. Ometeotl to develop and implement an Economic
Development Loan Program. The purpose of the program was to provide loans for working
capital, new construction, tenant improvement, and employment opportunities for downtown
core businesses.
Interstate 210 LED Billboard – Azusa, CA: The City of Azusa Redevelopment Agency engaged Mr.
Ometeotl to develop bid specifications for the upgrade/marketing of an existing obsolete
electronic reader board along the 210 Freeway. Mr. Ometeotl also structured the billboard’s
revenue and leasing model.
Target Store – Monrovia, CA: Lowe Enterprises engaged Mr. Ometeotl to acquire the 5-acre
development site, and negotiate tenant relocations and the development agreement among City
of Monrovia, Lowe Enterprises, and Target Corporation. The development of the site is currently
pending resolution of issues surrounding the redevelopment.
Restaurant Attraction/Incentive Program – Upland, CA: The Upland Community
Redevelopment Agency engaged Mr. Ometeotl to create the Restaurant Attraction/Incentive
Program. The primary objective was to provide financial assistance to restaurant owners wishing
to establish a new sit-down, full-service restaurant in targeted areas of the City.
Business Development – San Joaquin, CA: The City of San Joaquin engaged
Mr. Ometeotl to create a small business development incubator program. The primary objective
was to provide financial and technical assistance for business owners within the greater San
Joaquin region.
North Downtown Public Facilities – Compton, CA: Fostered by Mr. Ometeotl, this project is a
true public/private partnership between the City of Compton Community Redevelopment
Agency and Lowe Enterprises Real Estate Group for the development of a 5.80 acre site. The site
development entailed a new senior activity center, community center, and joint-use parking
structure. The project implementation result was the Agency’s capability to undertake
construction of new facilities, while not impacting bonding capacity or taking advantage of a net
$20 million New Market Tax Credit benefit for this $60 million project.
J. Ometeotl
Resume Continued
Bozeman, MT
Strategic Plan
A-10
John How, AICP
Planner
John has worked with several communities throughout Montana helping them create vibrant, yet
sustainable communities through land use plans and policies. He has extensive experience as a
project manager developing visioning plans for growth policies and land use plans, working on
comprehensive master plans, updating zoning ordinances and subdivision regulations and leading
public engagement efforts for various projects. John has also conducted market analysis and
affordable housing studies, parks and trails planning, infrastructure assessments and
transportation plans. He is proficient in ArcGIS, Google SketchUp and Microsoft Office. John is a
member of the American Institute of Certified Planners.
Project Experience
Project Manager, Neighborhood Conservation Overlay District (NCOD) Analysis – Bozeman, MT:
John is working with a team of architects to analyze the impacts of affordable housing, design
guidelines and zoning code changes with the City of Bozeman’s NCOD. The district’s guidelines,
which comprises historic structures as well as non-historic buildings, is outdated and is causing
issues with new home development as well as new commercial growth within Bozeman’s
downtown core. The KLJ team is currently reviewing best practices for encouraging affordable
housing within historic districts as well as researching new design guidelines to promote quality
development while keeping construction costs at bay.
Project Manager, Sweetgrass Region Impact Study – Sweetgrass Development, MT: John
developed an impact study for a five-county region in north-central Montana that analyzed growth
impacts to schools, housing, infrastructure and community facilities such as police, fire and
hospitals. He interviewed 100 key businesses across the five-county to gauge their growth
forecasts in the next five years; the growth forecasts supplemented KLJ population pyramids and
State of Montana census figures. John also prepared action items and implementation plans for
land use strategies, affordable housing policies and infrastructure upgrades across the region. The
largest impact was to housing stock and the inability of new workforce employees to find quality,
affordable housing. As such, the study focused on helping the Sweetgrass Region construct
affordable housing and infrastructure improvements to capitalize on projected growth.
Project Manager, Growth Policy and Transportation Plan – Richland County, MT: John is the
project manager for the Growth Policy, which is a planning document to guide growth and
development throughout the county. He is working with a team to ensure the land use policies and
transportation strategies coincide with each other. He is also leading all public input meetings and
presentations to governing bodies within the county. The growth policy will be an updated, concise
document that provides policies and strategies for land use, housing, infrastructure,
transportation, natural resources and economic development that county and city officials can
implement to improve the quality of life in Richland County.
Project Manager, Rail Park Market and Feasibility Analysis, Flathead County Economic
Development Authority – Flathead County, MT: KLJ conducted a market analysis, which included a
competitive assessment, financial feasibility, cultivation of partnerships, target industry
identification, leads for recruitment, funding options and identification of an operating model to
determine the appropriate businesses for locating to the park. John also organized and led
multiple meetings to obtain input from FCEDA, BNSF, the local short line operator, the City of
Kalispell and the two Kalispell businesses using the existing rail to determine potential site layout
options. A final site layout was selected that accommodates the requests of the businesses in town
and provides multiple locations for additional new businesses, which require access to rail, to
move into the site.
Education
Master of Science, Urban
and
Regional Planning,
University of Iowa
Bachelor of Science,
Criminal Justice,
University of Nebraska at
Omaha
Bachelor of Arts,
Psychology, University of
Nebraska at Lincoln
Professional Registrations
American Institute of
Certified Planners (AICP)
Professional
Memberships
American Planning
Association Western
Central Chapter
Montana Association of
Planners
Toastmasters
International
25 Years Experience
Bozeman, MT
Strategic Plan
A-11
Project Manager, Housing Impact Study – Toole County, MT: KLJ collaborated with Toole County
and the cities of Shelby, Sunburst, Kevin and Sweetgrass to develop a housing impact study that
analyzed the current housing trends and future growth projections for the region. Using data from
realtors, public, previous studies including housing assessments from the Montana Department of
Commerce and most importantly, interviews with local businesses, our team was able to compile
scenarios for accommodating future growth and the impacts associated with continued
development. KLJ created development summaries for each community that listed potential
housing needs, available lots for development, market prices for vacant and residentially zoned
property and deficiencies in certain housing types. In addition, KLJ was able to determine a
projected economic growth rate for the county based on input from local businesses and their five-
year business plans.
J. How
Resume Continued
Bozeman, MT
Strategic Plan
A-12
Forrest Sanderson, CFM
Planner
Forrest joined KLJ’s Billings office after a distinguished career as a professional planner working
with Montana’s state and local governments. He has created seven new rural zoning districts,
completely revised and updated three municipal zoning ordinances and amended existing zoning
regulations more than 150 times. In addition, Forrest has reviewed more than 250 subdivisions
creating in excess of 1,500 lots, served as a floodplain administrator for more than 20 years in four
separate jurisdictions and written or assisted in the writing of numerous master plans, growth
policies and subdivision and zoning regulations to implement planning documents. This experience
encompasses small resort communities that desired to remain as they are to rapidly growing and
developing cities, counties as well as state and regional projects.
Project Experience
Community Development Director, City of Red Lodge – Red Lodge, MT: Forrest served as planning
director, building official, subdivision administrator, environmental certifying officer, floodplain
administrator, grant administrator and zoning administrator for the City of Red Lodge. His typical
responsibilities addressed subdivision administration (major and minor), zoning administration (all
city districts) and all amendments to existing zoning maps. He also provided financial, technical and
administrative support to the Red Lodge Public Works Department, served as liaison between the
City Council and Carbon County Commissioners, provided administrative and technical support and
administration to three subcommittees of the Red Lodge City Council and implemented the City
Council’s policies and legislative actions for the Planning, Building, Public Works, Police and City
Administration Departments.
Under his direction, the Red Lodge Growth Policy was written in 2007 and implemented by
subdivision and zoning regulations in 2008. The Growth Policy was updated in 2013 and
implemented by zoning regulations in 2014. The documents specifically addressed needs and
provided solutions to workforce and affordable housing issues.
Director of Planning and Zoning, Flathead County Planning and Zoning Office – Flathead County,
MT: As director of Planning and Zoning, Forrest served as subdivision administrator, environmental
certifying officer, floodplain administrator and zoning administrator for all unincorporated areas of
Flathead County. His typical responsibilities addressed subdivision administration (major and
minor), zoning administration (all county districts) and all amendments to existing zoning maps.
As the director of planning and zoning for Flathead County Forrest directly prepared, or had
prepared under his supervision, over 70 amendments to the various zoning districts and district
regulations in rural Flathead County. Many of these changes were made to expand opportunities
for residents near the Cities of Kalispell, Columbia Falls, and Whitefish.
Division Head, Lake County Land Services – Lake County, MT: During his nine years with the
County, Forrest rose from assistant planner to associate planner to Planning and zoning division
head. In each of these positions his focus was on county (major and minor) subdivision
administration, Polson city-county district subdivision administration, city and county zoning
administration, city and county zoning district creation, amendments to existing city and county
zoning maps, amendments to city and county zoning regulations, neighborhood planning,
amendments to the city and county subdivision regulations, floodplain administrator for both city
and county, Lakeshore protection supervisor and grant writing administration. Forrest was the
primary planner for the County Board of Adjustment, County Planning Board, Polson City-County
Planning Board and City of Polson Board of Adjustment
Over his nine years with Lake County, Forrest created or assisted in the creation of seven new rural
zoning districts in Lake County. He assisted in the creation of the 1994 City-County Master Plan and
Zoning Regulations for the City of Polson. Upon the adoption of zoning regulations, Forrest was
appointed by the City Council and County Commissioners as the zoning administrator for the
newly-formed district.
Education
Bachelor of Science,
Montana State University,
Bozeman
Professional Registrations /
Certifications
Certified Building Inspector,
ICC
Certified Floodplain
Manager - Association of
State Floodplain Managers
American Institute of
Certified Planners
Affiliations
Professional Memberships
American Planning
Association Western Central
Chapter
Montana Association of
Planners
Association of Montana
Floodplain Managers
Association of State
Floodplain Managers
Continuing Education
Primary Leadership
Development Course –
Helena, MT
Essentials of Management
(six-day course for upper
level managers) – State of
Montana Professional
Development Center
Essentials of Management
(eight-day course for
managers) – State of
Montana Professional
Development Center
MSF Safety Trainer course –
Effective Supervision
8 Years Experience
Bozeman, MT
Strategic Plan
A-13
Shari Eslinger
Engineer
Shari is a LEED Green Associate, Notary of the Public, and a certified SWPPP Administrator. She is
well-versed in lean process management, and is highly organized and efficient. She has the ability
to multi-task effectively and has the flexibility to work within various practice areas. She is an
active participant in ASCE Montana Chapter as well as MSU’s student chapter, KLJ’s Young
Professional Development Program and a local STEM advocate. She also serves on Governor Steve
Bullock's Economic Development Advisory Council as the Prospera Business Network Region
Representative.
Project Experience
Project Tracker/Observer/Designer/Land Acquisitions, Gallatin Gateway Broadband Project –
Bozeman/Belgrade/Gallatin Gateway, MT: RUS Broadband Initiatives project intended to bring
fiber optic telecommunications lines to Gallatin County, and its surrounding areas, over a three-
year period. Funding includes seven contracts totaling $38 million, granting the design and
construction of 560 miles of fiber optic network within the RUS project corridor. All permitting,
right-of-way acquisition, design work (outside and inside plant), construction observation, project
tracking and GIS records were executed by KLJ.
Engineer, Big Sandy Water System PER – Big Sandy, MT: KLJ was contracted to do a Preliminary
Engineering Report (PER) on the Town of Big Sandy’s drinking water system and submit their
assessment on the current state of that system. It was found the water line infrastructure needed
to be replaced and a report was to be submitted to the town of Big Sandy stating those findings
and suggested alternatives.
Technical Skills
Coordinating information across multiple offices to support specific project goals requires both
high-level organizational skills and efficiency. Shari works with professionals from multiple KLJ
offices facilitating both internal operations and completion of specific project tasks. The following
provides an overview of skills that will benefit the study.
Research for stakeholder and community input initiatives
Survey creation, processing and administration
City and multiple agency communication
Meeting facilitation
Database administration
Education
Bachelor of Science,
Civil Engineering
Montana State
University
Professional
Registrations /
Certifications
Engineer Intern – MT
Notary of Public – MT
Certified SWPPP
Administrator – MTDEQ
LEED Green Associates
– USGBC
Professional
Memberships
ASCE Associate Member
Continuing Education
Bismarck State College -
ArcGIS I – Introduction
to ArcGIS 10.1 Version
Bismarck State College -
ArcGIS II – Essential
Workflows 10.1 Version
Master Graphics – Civil
3D training
4 Years Experience
Bozeman, MT
Strategic Plan
A-14
Sample Reports
A required by the City of Bozeman’s RFP for a Strategic Plan, we have included the following sample reports.
City of Kalispell, Montana Core Area Implementation Plan
City of Fort Lauderdale, Florida Economic Development Strategic Plan
Bozeman, MT
Strategic Plan
A-15
Required Form
Non-Discrimination Affirmation Form
27368 Via Industria, Suite 200
Temecula, California 92590-4856
800.755.6864 | Fax: 888.326.6864
www.willdan.com
fson
Kalispell Core Area Market & Feasibility Analysis Page 3
Table of Contents
I. Introduction & Executive Summary 7
II. Baseline Demographic & Economic Overview 9
Population 9
Households 9
Age Profile 10
Income Profile 10
Unemployment and Labor Force 12
Educational Attainment 13
Skills Gap 14
Kalispell Tourism Market 14
III. Residential Market Analysis 17
New Housing Construction Trends in Kalispell 17
Housing Market Sales Prices & Pace in Kalispell 17
Kalispell Apartment Market Trends 19
Flathead County Housing Market Trends & Projections 19
Housing Affordability in Flathead County 20
Residential Development Opportunity in the Core Area 21
IV. Retail Market Analysis 23
Core Area Site Characteristics 23
Retail Trade Areas 24
Primary Trade Area 24
Secondary Trade Area 25
Retail Competition Overview 25
V. Office Market Analysis 32
VI. Business Park/Industrial Market Analysis 33
Key Recommendations 33
VII. Hotel and Hospitality Market Analysis 35
VIII. Opportunities and Constraints: Implications for Core Area Plan 36
Strengths and Opportunities 37
Constraints/Threats 39
IX. Core Area Economic Development Recommendations 40
Scenario 1 – Status Quo (Maintain Rail in Core Area) 40
Scenario 2 – Conservative (Limited Expansion of Core Area Retail) 41
Scenario 3 – Optimistic (Major Expansion of Core Area Retail) 42
Long-Term Redevelopment Potential 43
Kalispell Core Area Market & Feasibility Analysis Page 4
Rationale 43
Recommended Retail Recruitment Strategies 44
Leasing and Management 44
Phasing and Action Items 44
Conclusions 45
X. Kalispell Linear Park Conceptual Plan 47
Introduction 47
Linear Park Layout and Programming 47
Key Regional Trail Connection Points 48
Proposed Linear Park Programming “Bump out” Nodes 48
Street Extensions/ Railroad Crossing Conversions 49
Connection to the City of Kalispell Parks and Recreation Network 49
Linear Park Capital Cost Assumptions 49
Rail Line Removal 50
Linear Park Trail 50
Summary of Construction Costs 50
Linear Park Operating Cost Assumptions 52
XI. Core Area Financial Feasibility & Implementation Plan 53
Summary of Key Findings 53
Annex A: Detailed Assumptions & Calculations 59
Annex B: Public Park/Recreation Development Opportunities – Case Studies 60
Portland Trails, Maine 60
Potomac Overlook Regional Park Nature Education Center, Arlington, Virginia 61
Carolina Thread Trail & Cawtaba Lands Conservancy, North and South Carolina 62
Kalispell Core Area Market & Feasibility Analysis Page 5
Index of Tables/Figures
Figure 1: Population Counts and Estimate (2010, 2012, 2017) .......................................................................................................................... 9
Figure 2: Household Counts and Estimate (2010, 2012, 2017) .......................................................................................................................... 9
Figure 3: 2012 Population by Age ..................................................................................................................................................................... 10
Figure 4: 2017 Population by Age ..................................................................................................................................................................... 10
Figure 5: Income Profile for the City of Kalispell................................................................................................................................................ 11
Figure 6: Income Profile for Flathead County .................................................................................................................................................... 11
Figure 7: Per Capita Income, Flathead County, 1997-2010 .............................................................................................................................. 11
Figure 8: Percent Change in Nonfarm Labor Income, Flathead County ........................................................................................................... 12
Figure 9: Flathead County Employment Trends 2005 - 2010 ........................................................................................................................... 12
Figure 10: Unemployment Rate, Flathead County, Not Seasonally Adjusted .................................................................................................. 13
Figure 11: Educational Attainment in Flathead County ..................................................................................................................................... 14
Figure 12: Educational Attainment in the United States .................................................................................................................................... 14
Figure 13: Glacier National Park Visitor Spending (2010 and 2023 Projection) ............................................................................................... 16
Figure 14: Residential Construction Pipeline, City of Kalispell .......................................................................................................................... 17
Figure 15: Home Sales and Median Sales Price in Kalispell (2007-2012) ....................................................................................................... 18
Figure 16: Median Home Values, Kalispell Zip Code 59901 ............................................................................................................................. 18
Figure 17: Gross Rent as a Percentage of Household Income ......................................................................................................................... 19
Figure 18: Occupancy of Housing Units, Flathead County, 2010 ..................................................................................................................... 20
Figure 19: Housing Affordability Index, Flathead County 2007-2010................................................................................................................ 21
Figure 20: Average Annual Housing Unit Construction ..................................................................................................................................... 21
Figure 21: Conceptual Redevelopment Alternatives – Residential Development ............................................................................................ 22
Figure 22: Target-Anchored Shopping Center (Highway 93 North) .................................................................................................................. 24
Figure 23: Kalispell Retail Competition Map ...................................................................................................................................................... 26
Figure 24: Retail Gap Analysis - City of Kalispell .............................................................................................................................................. 28
Figure 25: Conceptual Redevelopment Alternatives – Retail Development ..................................................................................................... 29
Figure 26: Incremental Residential Retail Spending Power & 10-Year Supportable Retail Development (2022) ........................................... 30
Figure 27: Food, Retail & Entertainment Demand from Glacier National Park Visitor Spending (Square Feet) .............................................. 31
Figure 28: Current Kalispell Office Market Lease Rate Trends ......................................................................................................................... 32
Figure 29: Leads for Rail Industrial Park ........................................................................................................................................................... 33
Figure 30: Profile of Kalispell Area Hotel/Lodging Properties ........................................................................................................................... 35
Figure 31: Downtown Kalispell .......................................................................................................................................................................... 40
Figure 32: Proposed Core Area Redevelopment .............................................................................................................................................. 43
Figure 33: Current Conditions: Kalispell Center Mall Parking Lot ..................................................................................................................... 45
Figure 34: Summary of Linear Park Development Costs and Phasing Recommendations ............................................................................. 51
Kalispell Core Area Market & Feasibility Analysis Page 6
Figure 35: Kalispell Linear Park Annual Operating Cost Estimates .................................................................................................................. 52
Figure 36: Core Area Financial Feasibility Analysis – Summary Results ......................................................................................................... 53
Figure 37: Core Area Plan Real Property Tax Revenue Assumptions –Incremental Taxes Per Square Foot from Similar Redevelopment
Activity ............................................................................................................................................................................................... 54
Figure 38: Fiscal Benefits at Buildout - Summary of Scenarios ........................................................................................................................ 55
Figure 39: Core Area Grant Funding Resource Strategy .................................................................................................................................. 56
Figure 40: Potomac Overlook Regional Park Environmental Stewardship Programming ................................................................................ 62
Figure 41: Carolina Thread Trail Park Identification Signage ........................................................................................................................... 62
Kalispell Core Area Market & Feasibility Analysis Page 7
The City of Kalispell commissioned this Core Area Commercial Market
Analysis (“Market Analysis”) to assist it in the redevelopment of the
Core Area. The City has developed a vision to revitalize the Core Area
while retaining its character and identity. This Market Analysis will
identify the opportunities to realize the vision, the impediments to
implementation, and provide direction on bringing the plan from
concept to reality.
This study analyzes the plan’s impact on fiscal revenues, job creation
(both one-time construction and ongoing permanent jobs), and indirect
spending. It also evaluates the environmental, social, and other public
benefits that are difficult to quantify, but have a positive impact on the
community.
The City’s vision is to increase the appeal of the Core Area by:
Removing the railroad tracks that bisects the Project Area and
replace the tracks with a Linear Park;
Improving and upgrading existing properties to remove the
blighted areas within the Core Area; and
Developing a compatible mix of commercial retail,
neighborhood services, residential housing and public areas
that meets the needs of residents and fosters a greater sense of
community. In turn, the proposed redevelopment will
strengthen the local economy by increasing the local tax base,
attracting new residents and businesses, creating new jobs,
and increasing tourism.
This report will assess and analyze development opportunities in the
following sectors:
Retail
Office
Business Park
Hotel and Hospitality
Institutional
Single and Multi Family Housing
The report will also identify ways in which public policy can encourage
appropriately scaled new development that will positively shape and
reinforce the Core Area of Kalispell through:
Retention of existing retailers
Strategy for the recruitment of new commercial uses
Impact of any recent and proposed development projects
Apparent strengths and weaknesses in Kalispell for the
following development sectors;
Kalispell Core Area Market & Feasibility Analysis Page 8
Elements that may now (or in the future) support or constrain
the goals of the Core Area Strategy;
The consumers’ experience within Kalispell and the Core Area;
Characteristics within Kalispell that have the greatest impact
on development;
Voids and opportunities in the marketplace that will affect
local retailers and national chains; and
Public improvements and public and private investment
strategies to reinforce project goals and objectives.
Kalispell Core Area Market & Feasibility Analysis Page 9
The City of Kalispell and Flathead County are both growing. Figure 1
shows that Kalispell had 20,603 residents in 2012. This number
represents a growth rate of 1.70 percent per year from the 2010 US
Census to 2012. Flathead County grew from 90,928 residents as
reported in the 2010 US Census to 94,275 in 2012. The county grew at a
rate of 1.84 percent per year during that time.
The city and county are both expected to continue adding residents, but
the rate of this growth is expected to slow over the next five years.
Between 2012 and 2017 Kalispell is expected to grow its population by
more than 1,200 residents, an annual growth rate of 1.20 percent.
Flathead County will reach a population of 100,620 in 2017 by having
an annual growth rate of 1.35 percent.
The 2010 US Census identified 8,638 households in the City of Kalispell,
as shown in Figure 2. By 2012, this number had grown by an annual
rate of 1.53 percent to 8,903 while the population grew more quickly at
1.70 percent per year. Though the population of the City is expected to
grow 1.2 percent annually from 2012 to 2017, the number of
households is expected to rise 1.44 percent to 9,546 by 2017. The city
added households more slowly than population from 2010 to 2012, but
will add households more quickly than population from 2012 to 2017.
Flathead County reflects this trend as well. While the population of the
county grew by an annual rate of 1.84 percent from 2010 to 2012, the
number of households only grew by 1.66 percent per year, from 37,504
to 38,748 in the same period. However, as the rate of population
growth in the county is expected to decline to an annual rate of 1.35
percent, the annual household growth rate will increase to 1.58 percent
per year, bringing the total number of households expected by 2017 to
41,808.
Kalispell Core Area Market & Feasibility Analysis Page 10
As in indicated in Figure 1 and Figure 2, both the City of Kalispell and
Flathead County are expected to add households faster than they grow
their populations. This signals anticipated demand for new housing
starts. Friends and family cohabitating out of economic necessity will
choose to form new households once their economic conditions allow
it. The expected rise in household formation by 2017 indicates both a
strengthening economy as well as reflects a larger national trend of
decreasing household sizes regardless of economic conditions.
Both the City of Kalispell and Flathead County have a larger portion of
the population in the 25 to 64 age range, the portion of the population
that traditionally financially supports the other ends of the age
spectrum. As Figure 3 shows, the population in 2012 in Kalispell that is
in this age bracket is smaller than the same age cohort in the county as
a whole; 50.6 percent as compared to 54.9 percent. The bulk of the
difference in the remaining population comes in the younger age
bracket. In the city, 33.5 percent of the population is under the age of
25 while just 30.4 percent of the county’s population is in this younger
demographic. The City of Kalispell is younger than Flathead County.
These trends are expected to continue through 2017. While the
Kalispell is expected to remain generally younger than Flathead County,
both places will cope with an aging population. Figure 4 shows that the
portion of the population age 65 and older is expected to grow. By
2017, the city’s retirement-aged population will be 17.5 percent of the
population while the county will have a 16.9 percent share of older
residents.
In 2012 the median household income in the City of Kalispell was
$37,319, as shown in Figure 5. The share of households earning more
than $75,000 per year was 19.2 percent. By 2017, the median income is
projected to grow to $41,906, an increase of 12.29 percent, or 2.46
percent on an annualized basis. By 2017, 22.3 percent of households
will earn more than $75,000. The per-capita income is also projected to
grow from $21,768 in 2012 to $24,169 by 2017, increasing by 16.15
percent.
Kalispell Core Area Market & Feasibility Analysis Page 11
Figure 6 demonstrates that residents of the county tend to be slightly
wealthier than City residents. The median household income for
Flathead County was $42,873 in 2012, and 23.7 percent of the county’s
households made more than $75,000 annually. By 2017, the median
income is projected to grow to $50,288, an increase of 17.30 percent
(3.46 annually), and the share of households earning more than
$75,000 per year will increase to 27.5 percent. From 2012 to 2017, the
region’s per-capita income is projected to grow from $23,242 to
$25,782.
Flathead County’s per capita income rose steadily from 1997 to 2008,
as demonstrated in Figure 7. This metric peaked in 2008 when the per
capita income for the county surpassed $35,000 in 2010 dollars. When
the economy faltered in 2009, it caused the per capita income levels of
the count’s residents to fall for the first time in a decade. In 2010, the
per capita income for the county rose, but still fell short of the pre-
recession figures slightly.
Nonfarm labor income measures how an economy is doing. Nonfarm
income grew 28 percent between 2003 and 2007, as shown in Figure 8.
Kalispell Core Area Market & Feasibility Analysis Page 12
Nonfarm labor income declined in 2008 and 2009 as major industries
including construction and wood products manufacturing experienced
upheaval. Some recovery occurred in 2010 as the wood products
industry and construction industry stabilized at lower levels, but the
economy will take several years of consistent growth to fully stabilize
to pre-recession strength.
Unemployment rates for Flathead County began to climb as the United
States entered a recessionary period in 2008. Prior to that time,
unemployment rates held steady under 5 percent. By 2009, the
unemployment rate in Flathead County had risen to more than 10
percent. Figure 9 shows the trend of rising unemployment rates by year
in Flathead County, Montana from 2005 to 2010.
Figure 9 also demonstrates that while the labor force declined from its
peak in 2008, the labor force did not diminish in the recession to below
the labor force numbers from 2005. This shows that the decrease in the
labor force is not the result of outmigration or retirement, but rather a
diminishment of the number of residents no longer seeking
employment.
Figure 10 shows the not seasonally adjusted unemployment rates for
Flathead County, including their fluctuations from season to season. A
clearer picture of the unemployment trend can be seen by observing
Kalispell Core Area Market & Feasibility Analysis Page 13
the linear unemployment on the graph. This trend line shows that the
overall rate has been dropping approximately one percentage point per
year since 2010, when the average rate was around 10 percent.
At peak unemployment season in 2010, the unemployment rate was
nearly 14 percent. By September 2012, the monthly employment rate
for the county had dropped to 7.3 percent. This rate has subsequently
risen, an expected trend given the cyclical nature of unemployment.
However, the overall trend since the beginning of 2010 has been one of
declining unemployment rates in Flathead County.
According to the Montana Department of Labor and Industry, the
recession hit the Flathead economy harder than any other major urban
area in the state. The nonfarm labor income decline of 2.7 percent in
2008 and the 9.3 percent decrease in 2009 were the largest among the
counties reported. Flathead County’s unemployment rate rose to 11.3
percent in November 2010, higher than any of the other large counties
in the state. These sizable impacts were the result of permanent
closures (such as Columbia Falls Aluminum Company) combined with
cyclic declines in major industries such as wood products, nonresident
travel, and construction.
According to the Montana Department of Labor and Industry, it will be
at least 2015 before real nonfarm labor income (an overall measure of
the economy) in Flathead County regains its 2007 peak.
However, the Kalispell economy is undergoing recovery. The evolution
of Kalispell into a regional trade and service center continues to be one
of the growing sectors of the economic base.
Educational attainment in Flathead County compares favorably to the
rest of the country for those without a college degree. As Figure 11 and
Figure 12 show, the share of the population over the age of 25 without
a high school diploma in Flathead County is just 8.07 percent compared
to 14.61 percent nationally. Continuing this trend, the share of the
population over age 25 that has a high school diploma or an equivalent
degree but not college experience is 32.1 percent in Flathead County,
while just 28.64 percent of the nation fall into this category.
7
8
9
10
11
12
13
14
Unemployment Rate Linear (Unemployment Rate)
Kalispell Core Area Market & Feasibility Analysis Page 14
Flathead County also boasts impressive educational attainment for the
segments of the population with college degrees. The share of the
population over the age of 25 with some college or an associate’s
degree in Flathead County is 32.49 percent compared to the national
figure of 28.55 percent. Additionally, the share of the adult population
in Flathead County with a bachelor’s degree or higher is 27.34 percent,
less than one percentage point off of the national figure of 28.2 percent.
Despite boasting strong educational attainment, the skill set of the local
workforce in Flathead County does not adequately address the skills
that businesses in the area need. According to a report by the Flathead
County Community College,, a “skills gap” exists in the county.
Businesses have a difficult time finding employees who have the skills
necessary to accomplish the jobs that they provide.
To address this issue, the report recommends elevating the training
resources available for advanced manufacturing in three specific fields:
wood products, technology-oriented manufacturing, and
entrepreneurial manufacturing. Dedicating resources to these specific
industries would educate and attract a pipeline of current and future
workers in the skills that businesses need.
Flathead Valley Community College led a group of public, private, and
educational partners to develop a curriculum designed to better teach
workforce development skills. The private partners provide some of
the resources needed to teach the students, and in return have a better
educated workforce from which to select employees.
The private sector partners have identified that they anticipate hiring
457 employees using these new skills between 2013 and 2015. New
jobs in these fields bring with them new money to the local economy,
fueling demand for redevelopment.
The Kalispell economy benefits greatly from tourism spending due to
its proximity to Glacier National Park and to the Canadian border.
According to the National Park Service 2012 Economic Impact Study,
more than 2 million visitors spent approximately 110 million dollars in
Kalispell Core Area Market & Feasibility Analysis Page 15
Glacier National Park and in communities near the park (based on 2010
data). That spending supported 1,695 jobs in the local area. The figures
are based on $12 billion of direct spending by 281 million visitors in
394 national parks and nearby communities and are included in an
annual, peer-reviewed, visitor spending analysis conducted by
Michigan State University for the National Park Service.
According to Glacier National Park Superintendent Chas Cartwright,
Glacier National Park has historically been an economic driver in the
state. The economic impact study demonstrates the substantial value of
the diverse goods and services provided by local businesses to the park
visitor, as well as the role of the park as an employment opportunities
for the Flathead County region.
Most of the spending and jobs are related to lodging, food, and beverage
service (52 percent) followed by other retail (29 percent),
entertainment/amusements (10 percent), gas and local transportation
(7 percent) and groceries (2 percent).
The Canadian visitor market also represents a significant share of the
overall visitor market. Canadian visitors travel to Kalispell to shop for
apparel, electronics, household goods, and other retail goods to take
advantage of Montana’s lack of state and local sales taxes.
Kalispell also draws a steady business traveler market due to its role as
the governmental hub of the region (the County seat) and frequent
trade shows and conferences.
Taking the Glacier National Park visitor market as an example, the
visitor spending generated by this market segment is substantial and is
an indicator of the source of inflow support for retail goods and
services in the Kalispell region.
Based on 2010 visitation of 2.1 million visitors and an average annual
growth rate of 2.1 percent, Willdan estimates that Glacier National Park
could expect to attract an additional 633,000 annual visitors over the
next ten years. Assuming current per capita visitor spending patterns,
Glacier National Park visitors are expected to generate $37.1 million in
incremental (net new) annual spending by 2023. This potential
redevelopment activity generated by visitor spending in the Core Area
is analyzed further in the retail and lodging market analyses in this
report.
Kalispell Core Area Market & Feasibility Analysis Page 16
Kalispell Core Area Market & Feasibility Analysis Page 17
The City of Kalispell commissioned this Core Area Housing Market
Analysis (“Market Analysis”) to assist it in the redevelopment of the
Core Area. The City has developed a vision to revitalize the Core Area
while retaining its character and identity. This Market Analysis will
discuss the current state of the housing market in the City of Kalispell.
The analysis provides and overview of residential construction trends
and projections to inform further dialogue on housing production in the
Core Area and City.
From 2003 through 2009, the creation of residential lots outpaced new
residential construction every year but 2007. As Figure 14 shows,
Kalispell added residential lots faster than housing units for nearly a
decade. Once the economy slowed down in 2008 and 2009,
construction companies slowed production to meet demand, but lot
developers slowed production even more. As a result, builders
constructed on the existing lots and have been slowly decreasing the
pipeline of developable lots available for residential building.
Meanwhile, the 2012 figures for new residential construction
demonstrate that economic recovery has begun in Kalispell.
The average sales price per square foot for homes in Kalispell was $99,
an increase of 23.8 percent compared to February 2011. The median
list price in May 2013 for single family homes in Kalispell is $249,900.
The list prices increased by 3.15 percent from the previous month.
The price per square foot for listings in this area is $153. However, the
median sale price in February for single-family homes was $169,626,
reflecting an increase of 7.0 percent from the prior month.
Kalispell Core Area Market & Feasibility Analysis Page 18
There are currently 547 resale and new homes for sale in Kalispell,
including 36 homes in the pre-foreclosure, auction, or bank-owned
stages of the foreclosure process. There are currently 6 new homes and
46 homes in excess of $500,000. The average listing price for homes for
sale in Kalispell was $351,600 for the week ending March 20, 2013
which represents an increase of 4.8 percent, or $15,983, compared to
the prior month. The high average listing price can be directly
attributed to the 46 homes for sale in excess of $500,000.
The February 2013 median home value in zip code 59901 is $147,500.
Over the past six months, approximately 15 homes sold per month in
the Kalispell market. Reviewing Kalispell building permit and
construction data, approximately 50 new homes have been constructed
annually in Kalispell since 2010. At the current rate of sales and new
home development, it would take approximately 4 years to exhaust the
current for sale housing supply.
The average sales price per square foot for homes in Kalispell has
increased 23.8 percent compared to February 2011. With both the
median list and sales price of for-sale homes in Kalispell continuing to
rise, it would appear that the housing market is improving. In speaking
with the Kalispell Building Department, local realtors and the Flathead
Valley Association of Realtors, local and national housing indicators
point to increased production and demand for housing.
Kalispell Core Area Market & Feasibility Analysis Page 19
Based on primary market research conducted by Willdan, the
Appleway Court and Depot Place apartment projects have brought
renewed life to the rental community in Kalispell. Appleway Court
identifies a 98 percent occupancy rate and leasing at Depot Place
appears to be moving at a brisk pace. There are scant listings of
available rental units in Kalispell. Current lease rates for traditional
apartment communities in Kalispell are approximately $0.85 to $1.25
per square foot per month. Lease rates for single-family homes or units
within single family homes dips slightly due to amenities, location and
availability. Current rates are approximately $0.65 to $1.00 per square
foot per month. Given the nature of the depressed housing market and
continued population growth the apartment segment will continue to
see strong activity.
Housing affordability for renters can be measured by calculating what a
resident pays in gross rent as a percent of their household income.
Residents paying 30 percent of their household income on rent are said
to be living in unaffordable units. Figure 17 shows that in Flathead
County, 9.80 percent of the renters spend between 30 and 34.9 percent
of their household income on rent. The figure also shows that 36.8
percent of the population spends more than 35 percent of their
household income on rent. In total a staggering 46.6 percent of the
renters in Flathead County live in units that are considered by industry
standard to be unaffordable.
Montana’s housing market had a strong year in 2012, with every major
market across the state reporting an increase in activity as compared to
2011. The Montana Association of Realtors (“MAR”) received sales data
from the eight largest associations in the state, and in all eight there
was an increase in the number of single-family homes sold compared to
2011.
Overall, in the 8 major markets in Montana, 8,579 single-family homes
were sold in 2012 compared to 7,051 in 2011, a gain of 1,528 homes or
21.67 percent.
“It is very exciting to see the Montana housing market continue to
improve,” said MAR President Pam Wood. “Every major market in the
state showed increased sales activity in 2012 when compared to the
previous year, and that is very important as housing plays a major role
in the overall economy.”
Kalispell Core Area Market & Feasibility Analysis Page 20
The Gallatin Association of Realtors saw the largest increase in single-
family home sales in 2012, with an uptick of 364 homes sold in 2012
compared to the previous year, for an increase of 33.18 percent. The
Northwest Association of Realtors was next with an increase of 307
homes (24.86 percent), followed by the Billings Association gain of 279
homes (15.96 percent).
The average sales price of a home rose in six of the eight markets, the
median sales price rose in seven of the eight markets and the average
days a home was on the market fell in four of the eight major areas.
Those figures do not include townhouses or condos, although six of the
eight markets in the state reported an increase in the number of those
sales as well.
Record-low interest rates and an increase in consumer confidence
played a key role in Montana’s housing market improving in 2012. In
relation to housing sales during the first quarter of 2013 there were
159 non-distressed sales in the first quarter of 2013. This compares to
112 in 2012 and 102 in 2011. Although the total number of sales is
nearly the same as 2012, the fact that bank-owned sales are down 42
percent and non-distressed sales are up 42 percent is a significant
indicator that the market continues to improve.
Nearly 14 percent of housing units in Flathead County are vacant for
seasonal use. Another 23 percent are renter occupied with about 56
percent of units occupied by owners. The remaining 6 percent of units
are vacant for various reasons including those properties listed for
rent, for sale, or those having been subject to foreclosure.
Building and electric permits for Flathead County were robust during
the early part of the prior decade, but have declined precipitously since
2007. Single family construction declined nearly 85 percent during that
time frame in Kalispell and outlying areas. According to City staff, single
family construction over the past 18 months has begun to return with
nearly double the permitted new housing units in 2012 as those of
2011.
Flathead County remains one of the most unaffordable real estate
markets in Montana. Housing affordability as measured by the Housing
Affordability Index has improved somewhat following the recent real
Kalispell Core Area Market & Feasibility Analysis Page 21
estate downturn. Figure 19 outlines the housing affordability from
2007 to 2010.
A measure of a population's ability to afford to purchase a particular
item, such as a house, indexed to the population's income. The Housing
Affordability Index (HAI) measures whether a family earning the
median income for an area qualifies for a typical loan on a median-
priced home. An index value over 100 means the typical family qualifies
for a loan on a typical home. Conversely, an index value under 100
indicates the typical family will not qualify for a loan. Values for the
computation come from Multiple Listing Service, Federal Housing
Finance Board, and the U.S. Census Bureau.
Based on historic trends over the past ten years, adjusted to reflect the
ongoing economic recovery, the City of Kalispell produced an average
of 232 new housing units annually. Utilizing a conservative estimate
and the baseline average annual housing production of 50 units (based
on a 10-year average of 232 units), it is plausible to expect
approximately 1,250 new homes may be constructed in Kalispell over
the next 25 years.
The proposed housing would include a mix of apartments, Low-Income
Housing Tax Credit units, and a minor component of condominium
Kalispell Core Area Market & Feasibility Analysis Page 22
units targeted for the latter phase of redevelopment (after year 7 of
Plan implementation). Based on the financial feasibility analysis
detailed in the Annex to this report, it is possible to achieve a sufficient
return on new construction investment if assuming market rate rental
rates of at least $1.10 per square foot. It is plausible to assume that
residential construction in the Core Area will continue along current
production rates in the near term with cautious developers achieving
success when delivering units to satisfy pent up demand. Based on
these parameters, the Core Area Plan assumes that a series of small
residential projects over a seven to ten year buildout horizon as
detailed in the following table.
Given the Core Area’s size, opportunity for development and potential
housing product types, we anticipate that the Core Area could expect to
capture approximately eight to 14 percent of that total production, or
105 to 175 units over the 25 year life of the Westside TIF District. In
total, this program assumes that the Core Area would capture an
average of four to seven units annually.
Kalispell Core Area Market & Feasibility Analysis Page 23
This study examines key real estate market and economic variables
(i.e., population growth, household income, consumer expenditure
patterns, employment trends, etc.) to test the potential for retail
development and/or redevelopment opportunities within the Core
Area.
The results of the demographic and economic analysis indicate there is
little unmet retail demand within the Core Area and Kalispell. The
opportunities to expand the Core Area’s retail trade exist in the
introduction of additional soft goods retailers and full service
restaurants.
Retailing and shopping habits have changed over the past decade.
Primarily the change occurred due to a shift in lifestyles. In the 1980s
and 1990s going to the mall was the dominant form of shopping. Today,
nearly 70 percent of purchases that are made come from discount
retailers. This trend has established Wal-Mart as the largest seller of
women’s ready-to-wear apparel.
Returning to the streets of our local neighborhoods is replacing the
mall experience. Today over 60 percent of consumers prefer to buy
their shoes in a neighborhood store. Today’s consumer enjoys having
the opportunity to live, shop and work in their neighborhood.
Main streets are becoming savvy and retailers are now able to compete
with the mall on any level. The average consumer walks by storefronts
at an average rate of seven seconds per storefront. Retailers
understand that they have to make the most of this foot traffic and
advertise their store through window and facade displays. Individual
retailers are employing interesting window displays and unique
merchandising techniques to capture shoppers’ attention. Competition
is growing and national tenants are now searching out locations on
main streets.
Presently, the Core Area’s existing retail square footage is comprised of
businesses that have limited synergy and cohesiveness. The expanse of
the area, multitude of uses and lack of pedestrian or vehicular
interconnection inhibits the future development of the Core Area.
The study area is generally defined as follows; Highway 2 on the north,
Center Street on the south, Meridian Road on the west and Woodland
Park Drive on the east.
Although there is significant access to the Core Area via Highways 2 and
93, the Highways significantly impact development opportunities and
the walkability of the Core Area. There is insufficient local access within
the Core Area as several of the north/south connectors have been
closed to accommodate railway traffic.
Willdan surveyed local and regional stakeholders to analyze existing
retail conditions. Survey interviews indicate that many of Kalispell’s
residents identify the Core Area as lacking sufficient parking, hampered
by Highway 93 and not containing significant synergy amongst uses.
Main Street, as Kalispell’s primary downtown shopping district,
Kalispell Core Area Market & Feasibility Analysis Page 24
competes with new retailers often opening stores in the northern
portion of Kalispell, adjacent to existing large scale retail developments
and new housing product.
The northern Kalispell retail developments serve as the primary
regional shopping district in the greater Flathead Valley area. The retail
development is anchored not only by big-box retailers, but also by
discount department stores, hotels, restaurants, and a multiplex movie
theatre. Retailers that can appeal to the demographics of Main Street’s
primary trade and serve neighborhood-shopping needs, or create a
unique specialty niche that draws shoppers to the district from beyond
as an alternative to regional shopping centers, will most likely succeed
as an alternative to the regional shopping centers of northern Kalispell.
The profile of the retail market within the Primary Trade Area shows
that a great portion of the retail establishments are located within a 10
mile radius of the Core Area. The population of the City of Kalispell
comprises 20 percent of the Trade Area’s total population, but 53.4
percent of the County’s retail businesses are in the 10 mile radius of the
Core Area. These numbers show that Kalispell is a major source of
retail activity in the Primary Trade Area.
There are a variety of neighborhood business districts within close
proximity to the Core Area including the intersection of Highways 2 and
35, Main Street (south of 18th Street), and downtown Kalispell. The
regional shopping centers are located at the northern periphery of
Kalispell. The Core Area is anchored by a number of large retailers and
employers such as the Kalispell Center Mall, Smith’s Foods, Albertsons
Grocery, and Super One Grocery.
For the purposes of this study, the market area was split into both
primary and secondary trade areas. The primary trade area consists of
those consumers who shop the Core Area district on a regular/weekly
basis for most of their needs. This accounts for a majority of the retail
expenditures in the Core Area. The study’s primary trade area is
defined as fifty (50) miles from the Kalispell Center Mall. The secondary
trade area extends further north into Canada and to the west, east and
south, up to one hundred (100) miles.
The primary trade area is delineated by distance, the regional retail
nodes to the north, northeast and south, area population and
Kalispell Core Area Market & Feasibility Analysis Page 25
demographics, and the flow of retail traffic in all directions. The
primary trade area residents account for most of the sales of the
convenience and neighborhood-oriented retailers and services located
in the study area. The primary trade area generally accounts for
between 50 percent and 65 percent of sales. However, more
destination-oriented tenants, such as breweries, art galleries and
restaurants, draw from not only the trade area, but also from beyond
the defined trade boundary, as well as from the local business and
tourist population.
The secondary trade area consists of tourists and those residents who
live in the region surrounding the primary trade area who patronize
retailers within the Core Area, but not as their primary source of
shopping. The secondary trade area is defined by distance. This area
has a current population estimate of approximately 141,500 persons,
which is expected to increase slightly to approximately 149,000
persons, or 5.3 percent by the year 2017. Persons per household are
currently 2.41.
More households in the secondary trade area are owner-occupied (55.4
percent) than in the primary trade area, with the remaining 23.2
percent renter-occupied. The median household income level for the
secondary trade area of $40,154 is 6 percent lower than is found in the
primary trade area. The median age is 42.5 years.
The retail competition map (Figure 23) identifies the Primary Trade
Area retail competition by type of development. The Core Area faces
significant retail competition in nearly every category. In particular, the
Evergreen and Northwest Kalispell region offer large format retail,
goods and services not readily available in the Core Area.
Kalispell Core Area Market & Feasibility Analysis Page 26
Kalispell Core Area Market & Feasibility Analysis Page 27
As part of this field evaluation, the project team conducted site visits to
all major shopping areas in and just beyond the defined trade area. The
core of retail in Kalispell is found either on Highway 93 near West
Reserve Drive or at the intersection of Highways 2 and 35. Both of these
retail areas offer several discount and big-box retail stores. In addition
to the regional shopping centers, the Core Area competes more directly
with neighborhood shopping districts.
Figure 24 shows the retail gap for selected sectors in the City of
Kalispell. “Supply (retail sales)” estimates sales to consumers by
establishments. Sales to businesses are excluded. “Demand (retail
potential)” estimates the expected amount spent by consumers at retail
establishments. Supply and demand estimates are in current dollars.
The “Leakage/Surplus Factor” presents a snapshot of retail
opportunity. This is a measure of the relationship between supply and
demand that ranges from +100 (total leakage) to -100 (total surplus). A
positive value represents 'leakage' of retail opportunity outside the
trade area. A negative value represents a surplus of retail sales, a
market where customers are drawn in from outside the trade area.
The Retail Gap represents the difference between Retail Potential and
Retail Sales. ESRI uses the North American Industry Classification
System (NAICS) to classify businesses by their primary type of
economic activity. Retail establishments are classified into 27 industry
groups in the Retail Trade sector, as well as four industry groups within
the Food Services & Drinking Establishments subsector.
Several industries show leakage, meaning that demand exceeds supply
in Kalispell. These industries include:
Lawn & Garden Equip & Supply Stores
Office Supplies, Stationery & Gift Stores
Electronic Shopping & Mail-Order Houses
Vending Machine Operators
Direct Selling Establishments
Drinking Places - Alcoholic
Entrepreneurs seeking to open businesses in these sectors can expect
strong sales because the market demands more of those products than
the market currently supplies. On the other hand, the majority of the
retail sectors show a market surplus, meaning that businesses in
Kalispell supply more products and services than are demanded by the
local population.
Kalispell Core Area Market & Feasibility Analysis Page 28
Kalispell Core Area Market & Feasibility Analysis Page 29
It is important to note that the retail gap analysis does not reflect inflow
spending from the visitor market, as evidenced by the volume and
location of the Kalispell region’s retail supply and continued
development activity during the economic downtown. To illustrate the
spending power of the visitor market, Willdan analyzed data reported
by the US National Park Service, testing projections of visitation levels
and per capita spending by major retail and entertainment categories.
Assuming an average annual growth rate of 2.5 percent (based on 10-
year historical trends), it is expected that the visitor market could grow
from 2.1 million visitors (2010) to approximately 2.9 million visitors in
2022, or an increase of approximately 663,000 visitors. Associated
incremental retail and entertainment spending will further support the
strategy to revitalize the Core Area and attract new retailers. Based on
spending patterns reported by the National Park Service (in 2010
dollars, held constant to illustrate a conservative case), new visitors to
Glacier National Park could be expected to spend $149.4 million
annually by 2022, or an increase of $37.2 million over 2010 retail
spending. Assuming national chain quality annual sales productivity
requirements of $300 per square foot, this spending translates to
support for approximately 295,000 square feet of new retail space in
the Kalispell region.
Taking a similar perspective with the residential spending market, it is
expected that nominal population and household income growth will
also generate incremental demand for new or redeveloped retail and
entertainment space. It is projected that Flathead County’s households
will grow from 39,000 households to 45,000 by 2022. Average
household incomes are expected to increase from $42,800 to $60,000
generating $3.5 in incremental gross income in Flathead County by
2022. Based on US Consumer Expenditure Data reported by the
Consumer Expenditure Survey, U.S. Bureau of Labor Statistics,
September, 2012, approximately 35 percent of gross household income
is expended on food at home (grocery), restaurants, entertainment,
apparel, personal care, and other retail goods. Assuming a conservative
capture rate of five percent of total available county-wide spending
power and retail sales productivity rates of $300 per square foot, the
Core Area could expect to attract approximately 205,200 square feet of
new/redeveloped retail space. Based on these parameters, the
conceptual redevelopment program includes three scenarios for retail
development or redevelopment. The Status Quo scenario assumes no
new retail development; the conservative scenario assumes that the
Core Area will support 77,500 square feet of new retail (location
unspecified). Scenario 3, the optimistic case, assumes that that
Kalispell Center Mall will redevelop and expand and, along with other
new retail businesses throughout the Core Area, will create
approximately 117,500 of new retail space.
Kalispell Core Area Market & Feasibility Analysis Page 30
Kalispell Core Area Market & Feasibility Analysis Page 31
Kalispell Core Area Market & Feasibility Analysis Page 32
Willdan researched Loop Net and the Multiple Listing Service to
identify the available office properties in the Core Area and downtown
Kalispell. There are currently 16 available office units, accounting for
nearly 20,000 square feet of office space. The type and variety of
available space would lend itself to small professional office, medical,
real estate and financial services.
Given that available properties had quoted lease rates of $4.20 to
$13.20 per square foot per year, the current office lease rates in the
Core Area do not support the costs of new construction. Given the
identified lease rates and number of available properties, the
development of additional office space would not be supported by the
market in the near term and is proposed as potential adaptive
redevelopment and reuse of existing space (substitution of existing
demand). Based on the financial feasibility test detailed in the Annex to
this report, office renovation would require lease rates of between $12
to $15 per square foot and new office construction would require lease
rates of $17 to $22 per square foot.
The current economics of the office market suggest that small format,
independent professional office or medical office could be an attractive
market for a developer in a position to redevelop existing office space.
Accordingly, the Core Area conceptual redevelopment program
includes approximately 17,500 square feet of new or redeveloped office
space over a 25-year buildout timeframe (assumed for Scenario 2:
Conservative and Scenario 3: Optimistic).
Kalispell Core Area Market & Feasibility Analysis Page 33
To test the supply and demand for a new rail-served industrial park,
the Flathead County Economic Development Authority (FCEDA)
retained KLJ Associates to perform a market analysis and feasibility
study as part of ongoing engineering planning underway. KLJ
determined that based on recent trends, the potential is increasing for
the industrial rail park to create jobs and support new industries
especially as manufacturing and other rail-oriented industries continue
to recover from the recession and expand operations.
The report concluded that service-oriented professions continue to be
the largest employers in the region. However, Plum Creek and Applied
Materials are large scale lumber and manufacturing companies that
lend credence that these industry types can thrive in the Valley.
Table 4 of the KLJ report identifies the top 10 Associate of Applied
Science (AAS) degrees and the top 5 Certificate of Applied Science
(CAS) degrees from Flathead Valley Community College (FVCC) for year
2011-2012. Data indicates that degree earners such as Welding and
Inspection Technology (19), Heavy Equipment Operator (17), Electrical
Technology (9) Small Business Management (6), HVAC (5) and Cabinet
and Furniture Technology (3) are graduates that can support
manufacturing and industries associated with rail.
Figure 3 of the KLJ report indicates that more than 50 percent of all AAS
graduates and CAS graduates have a degree that could service
manufacturing, agricultural/forestry, and rail-oriented industries.
Should potential businesses want to relocate or start-up in the rail park,
they would have a ready and available pool of human capital to meet
and expand business needs.
Table 9 of the KLJ report, recreated here as Figure 29, indentifies three
companies with a high likelihood of relocation or expansion, and four
other companies with a medium likelihood of relocation or expansion.
Construction and construction-related industries like lumber and
landscaping dominate this list.
KLJ recommended that MWED and FCEDA should pursue
industries such as Lumber companies, scrap steel, and other
Kalispell Core Area Market & Feasibility Analysis Page 34
grain elevators/agricultural uses. In addition, industries
related to creating machinery and other precision instruments
should be targeted for the rail park.
KLJ also determined that emerging technologies such as
electronics and pharmaceuticals and metallic ores/non-
metallic minerals may be viable industries to locate within the
park as long as they can prove a need for rail shipments. If they
cannot prove a need for rail service, the business should not be
allowed.
KLJ recommended that businesses that would utilize transload
facilities are important to target because of their need to ship
materials via truck and rail. Example industries that could
utilize transload facilities are big box retailers, large good
producers (recreational toys such as ATVs, boats,
snowmobiles), and liquid/petroleum products. Creating a rail
park with a transload operator will help stimulate rail freight
movements for the Flathead County and thus improve
economic development potential for the entire Flathead Valley.
More importantly, the transload operator will market freight
shipments to potential businesses as a viable and economical
option.
For sale and for lease sites should be created to foster a mix of
relocation or expansion options for potential businesses. While
no “one size fits all” financial model can be established in terms
of the number of sale versus lease sites, FCEDA should reserve
at Least 25 percent of the sites for each option.
FCEDA should work with the City of Kalispell and BNSF
Railway/WATCO Mission Mountain Railroad to create
development agreements, deed restrictions or similar
owner/lease agreements to foster rail-only industry
development within the park. Should a site become available
that does not have access to rail siding, a potential non-rail
oriented business could occupy the site. However, the site may
provide rail-oriented business that may only require
infrequent rail service (two or three times per year) the
opportunity to conduct business without having to pay a
premium for rail siding.
In addition, as the Valley continues to grow, some industries
may only have a need for shipping rail without having to have
direct access to rail siding on a daily, weekly or monthly
schedule.
FCEDA should lease out transload operations to a qualified
transloader that has previous experience loading and
unloading rail cars as well as loading truck shipments onto rail
and vice versa. A qualified transloader will improve efficiency
at the park, thus improving relations with businesses in the
park as well as businesses throughout the area.
Kalispell Core Area Market & Feasibility Analysis Page 35
While the industrial trade in Kalispell continues to wane, tourism has
become a bigger part of the Kalispell economy. Tourists are coming to
Montana for many reasons, including sightseeing, outdoor recreation,
and shopping. Kalispell is the gateway to Glacier National Park, which
had 2.2 million visitors in 2010. Many of these visitors drive through or
fly into Kalispell on their way to Glacier National Park.
In addition to recreation, Canadian shopping tourism is strong in
Kalispell. Canadians make planned trips to Kalispell to take advantage
of favorable exchange rates, no state sales taxes, and retail
establishments like Target, that are unavailable in their country. The
region’s tourism activity generates a secondary retail market segment
that further amplifies the primary countywide residential trade area of
90,000 residents.
While this demand would also suggest support for new hotel
construction, data reported by the Kalispell Convention and Visitors
Bureau indicates that there are currently 100 hotel rooms currently
under construction or in the pipeline and it is unclear whether
additional hotel rooms could be supported until this inventory is
delivered to the market and revenue per available room and occupancy
rates stabilize. For these reasons, it is recommended that new hotel
construction be considered as a mid- to long-term opportunity in the
Core Area.
According to the American Hotel and Lodging Association, new
construction cannot be supported until revenue per available room
reaches $180 and annual average hotel occupancy is at least 68
percent. Based on current hotel research data acquired by Willdan, the
average annual occupancy rate across 19 active hotel properties is
approximately 58 percent.
Kalispell Core Area Market & Feasibility Analysis Page 36
In order for the City to implement its vision and remove the railroad
tracks, it must develop a partnership and plan with each of the two
existing businesses that still use rail service. These two businesses are
very important to the City of Kalispell. If the City were unable to
relocate these businesses, then the tracks would not be considered
abandoned and could not be removed. The Flathead County Economic
Development Agency (FCEDA) recently purchased property just east of
the City limits that would be a prime candidate for the businesses’
relocation. The acquisition of this industrial park has injected new
enthusiasm for the Core Area Redevelopment Project as residents see
the vision moving closer to reality. In addition, the City has secured
Federal Brownfield remediation funds to assist with site remediation
and demolition.
The City plans to develop a Linear Park that would replace the railroad
tracks and link Woodland Park from the east to the Great Northern
Historical Trail on the west side of town. This park would improve the
pedestrian and bike access throughout the Core Area thereby
improving safety and mobility. It would also provide the public an
opportune place to gather, socialize and enjoy the camaraderie within
the neighborhood.
The Linear Park would be one component to transforming the
neighborhood into a lifestyle center of activity. Another component to
building the community is the addition of more and varied dining and
entertainment uses. The Downtown and Core Area has a limited
number of dining and drinking establishments that are spread out such
that they do not create a destination area for residents and tourists to
visit. The addition of several establishments within a short proximity
could generate positive energy to grow the entire district. One example
may be the creation of a microbrewery tasting room. Flathead Valley
craft breweries produce over 40 varieties of beers. A tasting room
would promote these local businesses while creating a gathering place
for area residents and tourists.
One of the biggest threats to the Core Area Revitalization is the growth
away from the Core Area. Over the past eight years, big box retail has
developed on the north side of town along the Highway 93 corridor.
The scarce availability of vacant, developable land within the City
combined with abundant land on the outskirts of the City has
encouraged suburbanization. The cluster of retailers in this corridor
Kalispell Core Area Market & Feasibility Analysis Page 37
generates strong traffic patterns, which in turn attracts new retailers
such as Cabella’s. If the Core Area’s current conditions continue
unabated, this trend will further diminish the competitive position of
Core Area retailers. The City has already lost the downtown movie
theaters when the owner decided to build the Signature Theaters
Stadium 14 Cinema. The City should continue to take proactive
measures to maintain the existing retail base while strengthening and
enhancing the Core Area retail mix.
Based upon Willdan’s observations and analysis, the Core Area Plan has
significant strengths that will support implementation. These strengths
include:
BNSF Railway/WATCO Mission Mountain Railroad is currently
working with the City of Kalispell and FCEDA to design a rail-
served industrial park that could accommodate the rail users
in the Core Area
BNSF Railway/WATCO Mission Mountain Railroad has
indicated their willingness to work with the community and
rail users to identify scenarios where rail service is no longer
necessary through the Core Area.
FCEDA has acquired a developable site to which rail-served
business could relocate.
The City already has a Brownfield Program to assist with
cleanup of sites requiring remediation.
The City’s history presents a unique identity to the Core Area.
Active private investment in Kalispell retail/dining, small
format office, and new infill housing is underway (i.e., $3.7
million in new construction/renovation for Brannigan’s Pub,
Depot Place, etc.).
The City has a vibrant local art community evidenced
throughout the Core Area and downtown.
Woodland Park serves as a key terminus point on the east side
of the proposed Linear Park.
The recently completed Depot Place housing project
demonstrates that there is demand for higher density,
affordable housing in the area.
The public support for the project gives it a higher probability
for success and makes it easier to implement.
The Kalispell Center Mall owner/operator has indicated
positive support for the Core Area Plan’s redevelopment goals
and is a potential source of funding for components of the
Linear Park plan and community gathering place (trail feature)
on the mall property.
The Plan highlights many of the constraints of the Core Area. These
weaknesses include:
The property north of the railroad tracks is underutilized
because it is separated by the railroad track from the
Downtown.
Kalispell Core Area Market & Feasibility Analysis Page 38
The lack of investment/re-investment has created blight and
neglected properties.
Many streets within the Core Area are not pedestrian friendly
due to a lack of sidewalks, curbs and gutters.
Traffic flow through the North-South connectors of the Core
Area is hindered by the limited at-grade railroad crossings.
There is a perceived parking problem in the downtown area.
Spaces close to retail shops are often occupied by employees
and workers in the area. The two hour time limits imposed on
these spaces to stop employee and all day parking inhibits
customers who would like to leisurely walk and shop in the
downtown area.
There is a lack of green space, trees and park settings in the
Core Area.
The Core Area lacks restaurant and entertainment venues. The
distance separating the current establishments and those in
the downtown diffuses the vibrancy versus having the
establishments together in a closer cluster.
The charm and parking efficiency of Kalispell’s Main Street is
diminished by State Highway activity. It is important that the
City of Kalispell continue to lobby for State and Federal
highway funding to finish the $32 million construction of the
Highway 93 bypass to reclaim Main Street as a fully
functioning, safe, pedestrian-oriented, historic shopping
destination.
The City of Kalispell has a great opportunity to move forward and
address these weaknesses by:
Relocating the rail-served businesses in order to replace the
railroad tracks with a Linear Park.
Developing a cohesive building and lot plan design that
incorporates the character from downtown’s historical
architecture with a modern appeal.
Enhancing streetscapes by adding sidewalks with gutters and
curbs, widening existing sidewalks to accommodate patio
dining and improve pedestrian traffic, incorporate angled
parking to increase the amount of available spaces, and
upgrading lighting to improve aesthetics and promote safety.
Improve city appearances by creating incentives to reinvest in
neglected property, cleaning up alley ways and overgrown
vegetation, enforcing city ordinances on abandoned vehicles
and community decay, and renovating the East Side Rail Bridge
to be a symbolic gateway into the Downtown area.
Encourage development to create a cohesive neighborhood
with a vibrant atmosphere. The addition of the Linear Park,
high-density housing, and nightlife and entertainment
establishments would transform the neighborhood into a
desirable lifestyle center.
Kalispell Core Area Market & Feasibility Analysis Page 39
The threats to the vision that the City has laid out for the Core Area are:
The cost may be prohibitively expensive for the City to attain a
suitable return on investment.
The business owners, FCEDA, and the City of Kalispell must
collaborate on the relocation of the rail-served businesses.
The relocation requires development time for site planning,
construction, and financing.
If the railroad tracks are not removed, the City would not be
able to fully implement its vision.
Grant money from the Brownfield Program must be expended
within the funding period.
If the Flathead Valley Electric Cooperative cannot move the
substation near Woodland Park, the Linear Park plans may
need alteration.
Legal restrictions may inhibit development. One example is the
deed restrictions on the downtown theaters that prohibit their
use to show movies. Another example is the limited number of
liquor licenses. In 1947, the state enacted a quota system that
limits the number of issued licenses based on local population.
These restrictions have raised the value of liquor licenses on
the secondary market into the hundreds of thousands of
dollars.
The development of big box retail on the north side of the City
along Highway 93 is attracting businesses away from the Core
Area.
Kalispell Core Area Market & Feasibility Analysis Page 40
The City of Kalispell is actively engaged in transforming the Core Area
into a destination and hub of activity for its residents, employees, and
tourists. Willdan recommends that the Core Area’s retail strategy
should not be to compete with northern Kalispell retail developments
but instead to create a destination that offers something unique and
outside that found in the traditional power center developments.
There is opportunity for the current Core Area merchants to create an
alternative to the existing regional shopping centers. Kalispell’s Core
Area is presently a viable shopping and dining destination with
significant potential to increase its retail activity through adaptive
reuse and redevelopment of existing space by capturing a greater share
of tourism spending generated by business travelers and visitors to
Glacier National Park.
We provide a range of potential redevelopment program scenarios and
the interdependent variables impacting the conditions of feasibility for
each alternative in the following discussion. The conceptual
redevelopment program targets identified take into account full
buildout of the Core Area over the 25-year life Tax Increment Financing
District.
This scenario was tested to identify the development potential of the
Core Area should rail service continue to operate. Acknowledging the
previously identified impediments of continued rail service to
development of the Core Area, there still is opportunity for
development. To mitigate the impacts of continued rail service,
Scenario 1 assumes that the City will create a cohesive marketing and
development strategy focused on infill development and retention of
existing users. The objective of this scenario would be focused
development and retention of existing retail businesses in the Core
Area.
This scenario assumes that the rail-served industrial park is not
constructed and the rail is not relocated from the Core Area to the new
Kalispell Core Area Market & Feasibility Analysis Page 41
park. Consequently, the Core Area Linear Park Plan is not implemented
and redevelopment and reuse is challenged by conditions of access,
blight, and other factors. This scenario assumes that the Kalispell West
Side TIF District generates only the baseline incremental tax revenues
of approximately $407,838 annually over the life of the TIF.
The Enhanced Core Area Retail will result in adding a slight amount of
retail to fill in the void areas, and will improve the existing conditions
within the Core Area. The void areas are retail tenants that are
underrepresented. They are determined by calculating expenditures,
existing retail square footage and future sales projections. The
Enhanced Core Area assumes the following:
Rail service through the Core Area will be discontinued.
A Linear Park has been developed and implemented to capture
the former rail line right of way.
Street connections previously closed by the rail line have been
reopened.
Street and sidewalk widths will remain unchanged and that
pedestrian traffic, limited vehicular traffic will continue to co-
exist.
Parking will continue to be limited to city parking lots, parallel
parking on Highway 93 or on adjacent side streets.
An effective management structure will be established to
coordinate overall leasing, marketing, design, merchandising,
parking and maintenance of the Core Area.
Existing retailers will improve their merchandising, marketing
and management strategies.
Many of the Core Area’s businesses could generally increase sales and
new commercial businesses could be supported including men’s and
women’s apparel, brewery tasting rooms, bakeries and restaurants.
This assumes that the City would implement the removal of the railroad
tracks, undertake extensive streetscape improvements and the existing
vehicular circulation patterns would remain in effect along Main Street.
This model also assumes that the overall Core Area businesses organize
to improve their merchandising techniques and develop an effective
marketing campaign focusing on the tourist and visitor market and to
promote more regular visits from persons outside of the primary trade
area.
Further business development projects that the Core Area could benefit
from include the expansion of its restaurants and apparel categories. By
expanding these two categories, the Core Area could eventually be the
primary destination for visitors to Kalispell and significantly expand its
primary trade area.
Additional pedestrian traffic could increase existing business sales with
appropriate management and marketing. This model assumes that the
same enhancements of removal of the railroad tracks, extensive
Kalispell Core Area Market & Feasibility Analysis Page 42
streetscape improvements and maintaining the existing vehicular
patterns along Main Street would be implemented. Further, this
assumes the City would be able to enhance its current cultural
entertainment programming in the Core Area.
Assuming the rail is removed and the Core Area Linear Park Plan is
implemented, additional retail expansion is expected to occur. The
needed additional improvements include:
The development of a major new cultural/entertainment-
attraction such as a lifestyle center or regional brewery tasting
room.
The establishment of a new Flathead County Library
Significant new family-focused attractions that create a welcoming
environment for families with young children, such as play structures,
public art, and small-scale recreational features such as a playground
water feature.
Limited retail expansion could be achieved by expanding a few
segments of the retail district, to encourage people outside of the trade
area to come to the Core Area as a destination for those specific
segments. The most promising segments identified for additional
expansion include apparel and restaurant businesses. By expanding
these two categories, the Core Area could eventually be the primary
destination for visitors and significantly expand its primary trade area.
Additional pedestrian traffic could increase the visibility and sales of
existing business.
This scenario was evaluated to identify the upper limit of the Core
Area’s retail and entertainment development potential. Accounting for
existing vacancies and based on the retail gap data reported by ESRI
Business Analyst, the district can support up to 115,000 square feet of
new retail business development over 25 years, assuming the following
major improvements:
Removal of the railroad tracks, extensive streetscape
improvements and maintaining the existing vehicular patterns
along Main Street
The provision of additional parking (on-street, structured or
angled).
The widening of pedestrian walkways and the inclusion of
additional public open space within the Core Area.
Kalispell Core Area Market & Feasibility Analysis Page 43
Willdan forecasts that the improvements outlined in this model could
significantly expand the Core Area’s primary trade area by attracting
both new unique retailing concepts and shoppers from much of the
greater Flathead Valley region.
Assuming the enhancements outlined above in Scenarios 2 and 3 are
implemented, coupled with additional improvements, major retail
expansion could occur. This model is designed to strengthen the
existing retail offered and to expand the variety, and thus the appeal of
the Core Area to a wider market, without losing its existing appeal and
charm. Additional off-street and angled parking along with improved
pedestrian access throughout the Core Area will enhance consumer
appeal, increase accessibility and therefore help sales potential.
The rationale for the recommended expansion alternatives within the
Core Area is presented below:
The addition of targeted retail, combined with the re-tenanting of the
existing retail, will create a more balanced mix, as well as strengthen
the family appeal of the street to attract the tourist, business and
secondary trade area population.
The use of select national tenants will increase the vitality and
credibility (name recognition) of the retail mix to strengthen the appeal
of the street to visitors and tourists, as well as those living in the
secondary trade area and beyond the defined trade areas.
While the residential demographics of the primary trade area offer a
stable residential base of over 90,000 persons, the median household
income and ratio of rental property reflects the demographic trends of
regional downtowns like that of Kalispell.
Additionally, retail and restaurants have added sales potential in the
area, due to both the existing trade area population and tourists drawn
to the area that are presently underserved by the existing stock of
commercial enterprises.
A healthy mix of national, regional and independent tenants is needed
to maintain an energetic retail district. National tenants add stability to
a shopping district and give the consumer the perception that they can
find a selection of standard items. Local retailers add the unique and
eclectic element to a retail street that malls cannot offer. A successful
Kalispell Core Area Market & Feasibility Analysis Page 44
mix between the two tenant types develops unique retail with the
convenience of name brand tenants together in a single area.
Leasing and Management
One of the most important elements in the success of any commercial
development or redevelopment effort is strategy for leasing and
management of the area. Just as a successful shopping mall is leased
with a targeted tenant mix to maximize sales for all tenants, the leasing
of an urban commercial district must follow a similar lead. The unique
combination and mix of a successfully leased shopping district will
assure its ongoing vitality.
The challenge of managing and leasing a shopping district such as the
Core Area is complex and diverse. Multiple landlords, some absentee,
make implementing consistent street management or complementary
leasing efforts difficult. Successful shopping districts, however, are
typically well organized in their efforts to promote, market and attract
desirable tenants.
It is most important that the businesses throughout the Core Area be
organized in a tight-fitting group with consistent and realistic goals.
Well-compensated and qualified individuals should direct such an
organization, much as a successful mall is leased and managed. The
manner of financing such activities is an important part of assuring
joint efforts to this goal. The existing Business Improvement District
(BID) can be an effective tool for this purpose.
Phasing and Action Items
As a means of improving the vitality of the Kalispell Core Area, the
following action items are recommended. Such improvements will aid
in efforts to attract and preserve quality retailers and restaurants in
Kalispell’s downtown.
Near-Term (3-4 months)
Improve merchandising efforts by existing Core Area retailers
and restaurants to enhance visual merchandising of their
product lines and to promote cross shopping among
businesses. Such efforts should include improved storefront
design, window display, lighting, inventory control and choice,
among others.
Development of a management group and appropriate funding
to assure clean and attractive streetscapes, open spaces, and
storefronts.
A review of existing wayfinding and signage directing vehicles
to the parking surrounding the Core Area and downtown is
encouraged.
Mid-Range (6-9 months)
The enforcement of short-term parking (1 to 2 hours) in
appropriate areas within the Core Area and its side streets to
allow vehicular traffic and to encourage turnover of prime
parking spaces.
Kalispell Core Area Market & Feasibility Analysis Page 45
The development and implementation of an overall marketing
and advertising campaign designed to expand the trade area
and overall sales.
The organization of an effective tenant recruitment program to
attract targeted retailers and restaurants to the study area.
Include a common 800-phone number and active participation
in the International Council of Shopping Centers and other
trade group activities.
The installation of permanent directories to be located
downtown to direct pedestrians and shoppers to the Core Area
and various shops and restaurants.
The creation of an ongoing assemblage of the inventory of all
leasable commercial space (occupied, vacant, and planned) in
the study area with appropriate data including square footage,
lease rates, lease terminations, footprints, etc. This will
facilitate the efficient flow of information to existing and
prospective tenants, brokers, landlords and investors.
The creation and design of marketing materials, including a
brochure for leasing and marketing purposes, to attract
potential retailers and restaurants.
The continuation and expansion of study area programming
and promotional activities (i.e., seasonal activities, Holiday
festivals) to provide additional incentives for shoppers to come
to the Core Area’s shopping, dining, and entertainment
enterprises.
Long-Range (12 months)
Expand existing BID or create new BID for Core Area
Plan for ongoing routine repair and updating of the public
realm.
Finalize planning, site design and layout for Linear Park.
Identify State and Federal funding to complete the $32 million
construction of the Highway 93 by-pass and reconfigure angled
parking on Main Street.
Willdan’s analysis of the current Core Area’s real estate and market
conditions indicate that there is unmet demand for retail and
Kalispell Core Area Market & Feasibility Analysis Page 46
restaurant uses. The Core Area’s unique combination of holding the
county seat, government employment center, residential and visitor
customer base provides a stable economic marketplace for expansion.
The Core Area has the potential to achieve higher market capture rates
by implementation of the Plan’s key objectives of:
Removing the railroad tracks that bisects the Project Area and
replace the tracks with a Linear Park.
Improving and upgrading existing properties to remove the
blighted areas within the Core Area.
Developing a compatible mix of commercial retail,
neighborhood services, residential housing and public areas
that meets the needs of residents and fosters a greater sense of
community. In turn, the proposed redevelopment will
strengthen the local economy by increasing the local tax base,
attracting new residents and businesses, creating new jobs,
and increasing tourism.
Kalispell Core Area Market & Feasibility Analysis Page 47
One of the primary objectives of the Kalispell Core Area Plan is to
formulate a funding and implementation strategy for installation of the
Kalispell Linear Park (“KLP”). The City of Kalispell’s overarching vision
is to further the revitalization of the Core Area by removing the existing
live freight rail line that bisects the town and replace the tracks with a
Linear Park, attracting private investment to upgrading infrastructure,
remove blight, and achieve a diversified mix of infill activity through
new construction and adaptive reuse/redevelopment of commercial,
retail, residential, neighborhood services, and community gathering
areas, and other public amenities.
Willdan provides a summary of the high-level planning parameters
associated with the Linear Park’s layout and proposed programming
elements, as well as the underlying capital and operating assumptions
that are the foundation of the park’s implementation strategy.
Based on input from City of Kalispell staff, the Kalispell Core Area
Steering Committee, and other community stakeholders, there is broad
public support for the removal of the existing freight rail line and the
installation of a new Linear Park in Kalispell.
The removal of the active rail line not only provides new commercial
and residential redevelopment opportunities, but also the ability to
reconnect Kalispell’s street grid to create a fully functioning,
pedestrian-oriented Main Street community retail destination.
Upon relocation of the rail line, the City of Kalispell is opening
opportunities for private land owners and businesses to strategically
reposition property located the downtown core for redevelopment and
reuse. The City’s role is to create the optimal conditions for private
investment through the following key action steps:
attract the maximum private investment and development
activity with a minimum level of public funding/support
upgrade basic public infrastructure to provide optimal
conditions for development/redevelopment activity
(sidewalks, street lights)
improve transportation flow through new street crossings
previously blocked by rail activity, better connecting drivers
with employment and commercial activity centers
safely connect pedestrians to active and passive recreational
amenities by investing in new trail heads at key locations.
After more than 20 years of public debate, the City’s long-term
investment in the Kalispell Core Area planning initiative is now taking
the next step in moving towards the active implementation phase of the
downtown rail-served business relocation by the BNSF
Railway/WATCO Mission Mountain Railroad.
The possible subsequent implementation of the Linear Park plan is
strategically structured to, eliminate blight, catalyze private investment
in the downtown Core Area, and achieve substantial enhancement in
the community’s amenities.
Kalispell Core Area Market & Feasibility Analysis Page 48
The following provides a high-level overview of current proposed
layout and programming targets for the KLP:
Key Regional Trail Connection Points
North & East Connection: Create a contiguous linear
connection via BNSN Railway Highway 2 overpass (the new
“Kalispell Gateway Bridge”) between Woodland Park (at the
east end of study area) and Lawrence Park (in the NE quadrant
of city).
West Connection: Connect the KLP to the existing Meridian
Trail Head via a new trail head at West 5th Avenue WN
(connecting hikers 8 miles out to Kila trail and 4 miles up to
North Reserve).
South Connection: Connect hikers 11 miles south to
Somers/Flathead Lake).
Proposed Linear Park Programming “Bump out” Nodes
Depot Park: Locomotive climbing equipment at Depot Park:
The City of Kalispell and FCEDA have begun discussions with
BNSF Railway regarding the possibility of donating an out of
service locomotive for public park use. This question needs to
be further explored with BNSF Railway/WATCO Mission
Mountain Railroad and others involved in the rail relocation
initiative.
Mall Clock Tower Pedestrian Plaza: potential for a developer-
funded and constructed open air farmer’s market and creation
of a focal gathering “third place” on privately-held Kalispell
Center Mall property (with potential for capital investment and
ongoing operating support from Mall owner/operator).
Senior Outdoor Fitness Park: proposed at Meridian Road and
Appleway Trail; this facility could be a small scale facility (new
or existing adaptive reuse structure) with outdoor exercise
equipment, and portable vending carts.
Flathead Electric Co-Op Site Comfort Station: the current
Flathead Electric Co-Op site is underutilized and is strategically
located at a potential trail connection point to Woodland Park
(and – long-term, to the proposed outdoor amphitheater site).
It is recommended that the City of Kalispell partner with the FEC to
redevelop the site to a low-cost/low-intensity comfort station and trail
head. This could be accomplished with minimal capital investment
through a land swap, long-term lease, or shared-use agreement. It is
envisioned that the comfort station would include the following
amenities:
trail head parking lot with city of Kalispell-branded directional
signage (potentially shared parking with FEC)
Restrooms/healthy snack vending machines
Kalispell Core Area Market & Feasibility Analysis Page 49
Solid waste receptacles (potentially to be included in the
Linear Park’s new recycling program)
Street Extensions/ Railroad Crossing Conversions
To maximize the impact of regional trailhead reconnection points, the
Willdan team strongly recommends that the Kalispell Linear Plan
include funding to achieve the installation of at-grade pedestrian
crossings and/or street reconnections key intersections where the
streets cross the railroad, as appropriate:
Street Extensions / Railroad Crossing Conversions (requires removal of
tracks and new construction to reconnect street grid):
5th Avenue EN
6th Avenue WN
7th Avenue WN
8th Avenue WN
Based on discussions with city staff, it is expected that the street
extension costs would be substantial (approximately $2.4 million).
These costs are reflected in the Core Area funding strategy in the
following section. To the extent possible, street extension costs would
mitigated by retrofitting existing rail crossing equipment and power
lines for vehicular/pedestrian crossing use..
The City of Kalispell Department of Parks and Recreation currently
maintains approximately 406 acres of parkland, including 138 acres
dedicated for the Kalispell Youth Athletic Complex. The parkland
inventory includes 321 acres of active parkland and 73 acres of natural
open space. Kalispell also owns 12 acres of undeveloped land. The City
maintains several beautification areas, including roadway greens and
annual plantings, via its Parks Department.
The Kalispell Core Area Linear Park Plan offers the potential
reconnection of downtown to several trail heads with connections to
nearby neighborhoods and vehicle parking. The Linear Park would
connect nearly the entire length of the city, providing approximately
two (2) miles in paved surfaces, opportunities for environmental and
recreational programming, and the installation of climbing equipment
at Depot Park, enhancing the cultural heritage of Kalispell’s railroad
history.
There are three distinct capital components to the Kalispell Linear Park
Plan:
Removal of the active rail freight line
Installation of the Linear Park trail/street reconnections
Adaptive reuse and new construction of facilities and
equipment related to programmed park nodes
Kalispell Core Area Market & Feasibility Analysis Page 50
Rail Line Removal
The cost estimates to remove the active rail line is still pending further
input from BNSF Railway/WATCO Mission Mountain Railroad, and
other stakeholders; therefore this cost estimate is subject to change
pending refinement of the Linear Park plan concept.
Linear Park Trail
Based on Willdan’s site visits and interviews with city staff (Planning,
Community & Economic Development, Public Works, and Parks and
Recreation departments), the installation of the Kalispell Linear Park
trail is expected to be a low impact construction project.
From a utilities perspective, the city’s existing grid of power, water,
wastewater, and roads are in a state of good repair with sufficient
capacity to serve the proposed Linear Park plan’s trail/road
connections and minimal active programming alternatives.
The primary capital costs appear to be associated with the street
extensions and the installation of street lights, curb cuts, sidewalks, and
other basic vehicle and pedestrian-oriented infrastructure upgrades.
Construction cost estimates are provided in the preliminary
implementation strategy (see Figure 34: Summary of Linear Park
Development Costs and Phasing Recommendations and in the detailed
calculations and assumptions located in the annex to this report). It is
expected that the Linear Park design and construction will be initiated
concurrently with the latter phases of the FCEDA Rail Served Industrial
Park construction and associated business relocation. It is anticipated
that the Linear Park will be implemented in phases, based on
availability of funding as follows (see Figure 34: Summary of Linear
Park Development Costs and Phasing Recommendations for detail):
Phase I: Assessment 0-3 Months
Phase II: Assessment & Cleanup Plan 3-6 Months
Phase III: Remediation Plan 6-12 Months
Phase IV: Cleanup 12-24 Months
Phase V: Park Design & Planning tbd
Phase V: Business Relocation tbd
Phase VI: Park Construction tbd
According to current estimates of park costs and available funding
sources, it appears that the installation of the Linear Park is financially
feasible, as discussed in the following implementation section of this
report. Nine percent of total budget for FY 2014 is planned for reserves
(future maintenance). The Parks & Recreation Department currently
holds $280,000 in cash reserves (14.3 percent reserve account). It is
feasible to explore utilizing the reserve fund to pay for small shortfalls
projected in the early years of development.
Kalispell Core Area Market & Feasibility Analysis Page 51
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Based on the current Kalispell Linear Park Plan concept noted in rough
map graphics provided in this memorandum, the length of the park as
drawn is 17,221 feet or 3.26 miles. Other potential operating impacts
likely to be to Public Works Department to expand solid waste
collection points along trail and/or at programmed nodes (especially if
recycling program is expanded in City of Kalispell). Note that operating
cost estimates for the programmed elements of the Linear Park are
illustrative.
The Kalispell Department of Parks & Recreation supports
implementation of the Linear Park; the scale and intensity of uses can
be programmed as part of typical expected growth for parks budget
(combined with reserves); expected annual operating costs the
operating costs for shared use trail and features are within a range that
can be managed and maintained.
Kalispell Core Area Market & Feasibility Analysis Page 53
To initiate the implementation planning for the proposed Kalispell Core
Area Plan --- the Kalispell Linear Park – the Willdan Team conducted
work sessions with City of Kalispell staff to collect preliminary data
regarding the individual action steps, cost estimates, and potential
funding sources. Table 12 in Annex A: Linear Park Implementation
Strategy: Sources & Uses of Funding provides a summary snapshot of
these actions steps. Based on a detailed review of the relationship
between costs, revenues and grant funding sources, and proposed
phasing, the Core Area plan is financial feasible.
Implementation of the Core Area Plan is vital to the future stability
of the City of Kalispell’s tax base.
The capital costs required to construct the Linear Park are
supported by a combination of grant funding, incremental real
property tax revenues, and TIF funding.
Other funding sources will be pursued and it’s expected that these
would adequately address any projected shortfalls (up to $1.1
million in Year 7 of the most conservative case (Scenario 1: Status
Quo), assuming 100% of the street extension improvements are
funded by the TIF. See Figure 39: Core Area Grant Funding
Resource Strategy for a detailed listing of grant funding targets).
Assuming conservative development activity that would result
from implementation of the Linear Park Plan as detailed by the
market analysis findings, the quantifiable public return on
investment is positive. It is expected that the incremental real
property values would reach between $71,000 and $133,000 per
year at full buildout of the conservative and optimistic scenarios,
respectively.
The 25-year cumulative cash flows of anticipated development
costs and incremental tax revenues flowing to the West Side TIF
are estimated to be between $5.75 million and $7.91 million
indicating that investment in the Core Area Plan will yield sufficient
incremental tax revenues to the City of Kalispell.
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Kalispell Core Area Market & Feasibility Analysis Page 58
Kalispell Core Area Market & Feasibility Analysis
Kalispell Core Area Plan Financial Feasibility AnalysisLinear Park Implementation Strategy: Sources & Uses of FundingTable 1: Redevelopment Program AlternativesTable 2: Conceptual Development Program by Opportunity SiteTable 3: Development Cost AssumptionsTable 4: Financial Feasibility - RetailTable 5: Financial Feasibility - OfficeTable 6: Financial Feasibility - Multifamily ResidentialTable 7: Commercial & Residential Construction Cost AssumptionsTable 8: Real Property Tax AssumptionsTable 9: Fiscal Benefits at Buildout - Summary of ScenariosTable 10: Redevelopment Phasing & Tax Generation Assumptions - Scenario 2: ConservativeTable 11: Redevelopment Phasing & Tax Generation Assumptions - Scenario 3: Optimistic Table 12: Linear Park Implementation Strategy: Sources & Uses of FundingTable 13: Summary of Linear Park Development Costs and Phasing RecommendationsTable 14: West Side TIF District Projections: Scenario 1 - Status QuoTable 15: West Side TIF District Projections: Scenario 2 - ConservativeTable 16: West Side TIF District Projections: Scenario 3 - OptimisticPage A-1 of 33
Kalispell Core Area Plan Financial Feasibility AnalysisTable 1:Redevelopment Program AlternativesKalispell Core Area Scenario 1 Scenario 2 Scenario 3Conceptual Redevelopment Alternatives Status Quo Conservative OptimisticRetail Development (sf)Retail - Apparel and Soft Goods 0 62,500 92,500 Retail - Restaurant (Casual & Full Service) 0 15,000 25,000 Total- 77,500 117,500 0Office Development (sf)0 17,500 17,500 Residential Development (units)Apartments - For Lease 0 25 75 Low-Income Housing Tax Credit Units 0 40 80 Condominium 0 - 20 Total 0 105 175 Source: Kalispell Core Area Plan; Willdan, 2013.Page A-2 of 33
Kalispell Core Area Plan Financial Feasibility AnalysisTable 2:Conceptual Development Program by Opportunity SiteTotal BuildoutOpportunity SiteOpportunity SiteOpportunity SiteOpportunity SiteOpportunity Sites /1Site 1 Site 2 Site 3 Site 4 (Core Area)Retail Development (sf)Retail - Apparel and Soft Goods 92,500 2,500 30,000 50,000 10,000 Retail - Restaurant (Casual & Full Service) 25,000 10,000 10,000 5,000 Total 115,000 2,500 40,000 - 60,000 15,000 Office Development (sf) 17,500 2,500 - 5,000 - 10,000 Residential Development (units)Apartments - For Lease75 50 25 Low-Income Housing Tax Credit Units80 40 40 Condominium20 20 Total 175 - 70 40 40 25 1/ Core Area wide opportunity sites are assumed to be throughout the project area and less than one acre on average.Source: Kalispell Core Area Plan; Willdan, 2013.Page A-3 of 33
Kalispell Core Area Plan Financial Feasibility AnalysisTable 3:Development Cost AssumptionsCosts per Square Foot - New Construction Hard Costs Soft CostsTenant ImprovementsParkingRetail Development (sf)Retail - Apparel and Soft Goods 150$ 30$ 45$ 36$ 261$ Retail - Restaurant (Casual & Full Service) 175$ 35$ 68$ 36$ 314$ Office Development (sf) 75$ 15$ 20$ 36$ 146$ Residential Development (units)Unit SizeApartments - For Lease 1,050 100$ 20$ 2.25$ 26$ 148$ Low-Income Housing Tax Credit Units 800 100$ 20$ 2.25$ 30$ 152$ Condominium 1,250 200$ 40$ 2.50$ 14$ 257$ AssumptionsParking Cost12,000$ Soft Costs (as % of hard costs) 20%Contingency 10%Gross building area per parking space 350$ SFParking Revenue -$ Per Year-$ SaleInterest Rate 7.5%Source: Kalispell Core Area Plan; Willdan, 2013.TotalPage A-4 of 33
Kalispell Core Area Plan Financial Feasibility AnalysisTable 4:Financial Feasibility - RetailBuildoutYrYrYrYrYrYrBuildout YearYear1 2 3 4 5 6 Retail Development - Gross (Annual)Retail - Apparel and Soft Goods30,000 30,000 Retail - Restaurant (Casual & Full Service)10,000 10,000 Subtotal Retail (sf) 40,000 - - - - 40,000 - Retail Development - Net SF (Ongoing)Retail - Apparel and Soft Goods85% 25,500 - - - - 25,500 25,500 Retail - Restaurant (Casual & Full Service)85% 8,500 - - - - 8,500 8,500 Subtotal Retail (sf) 34,000 - - - - 34,000 34,000 Net Income$Rent / SFRetail - Apparel and Soft Goods$20.00 4,080,000 - - - - 510,000 510,000 Retail - Restaurant (Casual & Full Service)$20.00 1,360,000 - - - - 170,000 170,000 Net Income 5,440,000 - - - - 680,000 680,000 Total Development Costs Cost/ sf Total sfRetail - Apparel and Soft Goods261 30,000 7,830,000 Retail - Restaurant (Casual & Full Service)314 10,000 3,135,000 Subtotal Retail (sf)40,000 10,965,000 Debt60% 6,579,000$ Equity40% 4,386,000$ Interest Rate7.5%Term 10 Down Payment4,386,000$ Points + Closing Costs3% 131,580 Total Cash Investment4,517,580$ Annual Payment($5,265,183)($658,148)($658,148)($658,148)Annual Cash Flow 7,018,522 - (658,148) 21,852 21,852 Cash on Cash Return0% -15% 0% 0%Cumulative Cash Flow (for Payback Year)- - - (658,148) (636,296) (614,443) Return on Investment (Cash on Cost) - Yr 17 15%Assumptions:Leasing Costs3%Operating Costs (% Revenue)25%Stabilized Vacancy Factor5%33%Source: Kalispell Core Area Plan; Willdan, 2013Page A-5 of 33
Kalispell Core Area Plan Financial Feasibility AnalysisTable 4:Financial Feasibility - RetailBuildoutBuildout YearYearRetail Development - Gross (Annual)Retail - Apparel and Soft Goods30,000 Retail - Restaurant (Casual & Full Service)10,000 Subtotal Retail (sf) 40,000 Retail Development - Net SF (Ongoing)Retail - Apparel and Soft Goods85% 25,500 Retail - Restaurant (Casual & Full Service)85% 8,500 Subtotal Retail (sf) 34,000 Net Income$Rent / SFRetail - Apparel and Soft Goods$20.00 4,080,000 Retail - Restaurant (Casual & Full Service)$20.00 1,360,000 Net Income 5,440,000 Total Development Costs Cost/ sf Total sfRetail - Apparel and Soft Goods261 30,000 7,830,000 Retail - Restaurant (Casual & Full Service)314 10,000 3,135,000 Subtotal Retail (sf)40,000 10,965,000 Debt60% 6,579,000$ Equity40% 4,386,000$ Interest Rate7.5%Term 10 Down Payment4,386,000$ Points + Closing Costs3% 131,580 Total Cash Investment4,517,580$ Annual Payment($5,265,183)Annual Cash Flow 7,018,522 Cash on Cash ReturnCumulative Cash Flow (for Payback Year)Return on Investment (Cash on Cost) - Yr 17 15%Assumptions:Leasing Costs3%Operating Costs (% Revenue)25%Stabilized Vacancy Factor5%33%Source: Kalispell Core Area Plan; Willdan, 2013YrYrYrYrYrYrYrYrYrYr7 8 9 10 11 12 13 14 15 16 - - - - - - - - - - 25,500 25,500 25,500 25,500 25,500 25,500 25,500 25,500 25,500 25,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 34,000 34,000 34,000 34,000 34,000 34,000 34,000 34,000 34,000 34,000 510,000 510,000 510,000 510,000 510,000 510,000 510,000 510,000 510,000 510,000 170,000 170,000 170,000 170,000 170,000 170,000 170,000 170,000 170,000 170,000 680,000 680,000 680,000 680,000 680,000 680,000 680,000 680,000 680,000 680,000 ($658,148)($658,148)($658,148)($658,148)($658,148)($658,148)($658,148)21,852 21,852 21,852 21,852 21,852 21,852 21,852 680,000 680,000 680,000 0% 0% 0% 0% 0% 0% 0% 15% 15% 15%(592,591) (570,739) (548,887) (527,035) (505,183) (483,330) (461,478) 218,522 898,522 1,578,522 Page A-6 of 33
Kalispell Core Area Plan Financial Feasibility AnalysisTable 4:Financial Feasibility - RetailBuildoutBuildout YearYearRetail Development - Gross (Annual)Retail - Apparel and Soft Goods30,000 Retail - Restaurant (Casual & Full Service)10,000 Subtotal Retail (sf) 40,000 Retail Development - Net SF (Ongoing)Retail - Apparel and Soft Goods85% 25,500 Retail - Restaurant (Casual & Full Service)85% 8,500 Subtotal Retail (sf) 34,000 Net Income$Rent / SFRetail - Apparel and Soft Goods$20.00 4,080,000 Retail - Restaurant (Casual & Full Service)$20.00 1,360,000 Net Income 5,440,000 Total Development Costs Cost/ sf Total sfRetail - Apparel and Soft Goods261 30,000 7,830,000 Retail - Restaurant (Casual & Full Service)314 10,000 3,135,000 Subtotal Retail (sf)40,000 10,965,000 Debt60% 6,579,000$ Equity40% 4,386,000$ Interest Rate7.5%Term 10 Down Payment4,386,000$ Points + Closing Costs3% 131,580 Total Cash Investment4,517,580$ Annual Payment($5,265,183)Annual Cash Flow 7,018,522 Cash on Cash ReturnCumulative Cash Flow (for Payback Year)Return on Investment (Cash on Cost) - Yr 17 15%Assumptions:Leasing Costs3%Operating Costs (% Revenue)25%Stabilized Vacancy Factor5%33%Source: Kalispell Core Area Plan; Willdan, 2013YrYrYrYrYrYrYrYrYr17 18 19 20 21 22 23 24 25- - - - - - - - - 25,500 25,500 25,500 25,500 25,500 25,500 25,500 25,500 25,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 34,000 34,000 34,000 34,000 34,000 34,000 34,000 34,000 34,000 510,000 510,000 510,000 510,000 510,000 510,000 510,000 510,000 510,000 170,000 170,000 170,000 170,000 170,000 170,000 170,000 170,000 170,000 680,000 680,000 680,000 680,000 680,000 680,000 680,000 680,000 680,000 680,000 680,000 680,000 680,000 680,000 680,000 680,000 680,000 680,000 15% 15% 15% 15% 15% 15% 15% 15% 15%2,258,522 2,938,522 3,618,522 4,298,522 4,978,522 5,658,522 6,338,522 7,018,522 7,698,522 Page A-7 of 33
Kalispell Core Area Plan Financial Feasibility AnalysisTable 5:Financial Feasibility - OfficeBuildoutYrYrYrYrYrYrYrYrYrYrYrYrBuildout YearYear1 2 3 4 5 6 7 8 9 10 11 12 Office Development (sf)Small format/independent office - - 2,500 - - - 10,000 - - 5,000 - - Absorption Assumptions - % of Total - - 2,500 2,500 2,500 2,500 12,500 12,500 12,500 17,500 17,500 17,500 Space Absorbed/ Annual sf 0% 0% 100% 100% 100% 100% 50% 50% 50% 75% 75% 100%Total Net New Office Space/sf 17,500 - - 2,500 2,500 2,500 2,500 6,250 6,250 6,250 13,125 13,125 17,500 Retail Development - Net SF (Ongoing)Small format/independent office 85% 14,875 - - 2,125 2,125 2,125 2,125 5,313 5,313 5,313 11,156 11,156 14,875 Subtotal Retail (sf) 14,875 - - 2,125 2,125 2,125 2,125 5,313 5,313 5,313 11,156 11,156 14,875 Lease Rate/sfGross Retail Sales (Gross Income)12$ 3,060,000 - - 25,500 25,500 25,500 25,500 63,750 63,750 63,750 133,875 133,875 178,500 % of SalesOperating Costs-13% - - (3,315) (3,315) (3,315) (3,315) (8,288) (8,288) (8,288) (17,404) (17,404) (23,205) Net Lease Income3,457,800 - - 28,815 28,815 28,815 28,815 72,038 72,038 72,038 151,279 151,279 201,705 Annual Debt Service (Mortgage Payment)Total Development CostsTotal sf 17,500 Cost/ Sf 146 Total Net New Office Space/sf2,555,000$ Debt 60% 1,533,000$ Equity 40% 1,022,000$ Interest Rate 7.5%Term 10 Down Payment 1,022,000$ Points + Closing Costs 3% 30660Total Cash Investment 1,052,660$ Debt Service($2,233,365) ($223,337) ($223,337) ($223,337) ($223,337) ($223,337) ($223,337) ($223,337) ($223,337) ($223,337) ($223,337)Cash Flow 1,224,435 - (194,522) (194,522) (194,522) (194,522) (151,299) (151,299) (151,299) (72,058) (72,058) (21,632) Cash on Cash Return0% -18% -18% -18% -18% -14% -14% -14% -7% -7% -2%Cumulative Cash Flow (for Payback Year)- (194,522) (389,043) (583,565) (778,086) (929,385) (1,080,684) (1,231,983) (1,304,041) (1,376,099) (1,397,730)Return on Investment (Cash on Cash) 19%Assumptions:Leasing Costs 3%Operating Costs (% Revenue) 5%Stabilized Vacancy Factor 5%Total13%Source: Kalispell Core Area Plan; Willdan, 2013.Page A-8 of 33
Kalispell Core Area Plan Financial Feasibility AnalysisTable 5:Financial Feasibility - OfficeBuildoutBuildout YearYearOffice Development (sf)Small format/independent officeAbsorption Assumptions - % of TotalSpace Absorbed/ Annual sfTotal Net New Office Space/sf 17,500 Retail Development - Net SF (Ongoing)Small format/independent office 85% 14,875 Subtotal Retail (sf) 14,875 Lease Rate/sfGross Retail Sales (Gross Income)12$ 3,060,000 % of SalesOperating Costs-13%Net Lease Income3,457,800 Annual Debt Service (Mortgage Payment)Total Development CostsTotal sf 17,500 Cost/ Sf 146 Total Net New Office Space/sf2,555,000$ Debt 60% 1,533,000$ Equity 40% 1,022,000$ Interest Rate 7.5%Term 10 Down Payment 1,022,000$ Points + Closing Costs 3% 30660Total Cash Investment 1,052,660$ Debt Service($2,233,365)Cash Flow 1,224,435 Cash on Cash ReturnCumulative Cash Flow (for Payback Year)Return on Investment (Cash on Cash) 19%Assumptions:Leasing Costs 3%Operating Costs (% Revenue) 5%Stabilized Vacancy Factor 5%Total13%Source: Kalispell Core Area Plan; Willdan, 2013.YrYrYrYrYrYrYrYrYrYrYrYrYr13 14 15 16 17 18 19 20 21 22 23 24 25- - - - - - - - - - - - - 17,500 17,500 17,500 17,500 17,500 17,500 17,500 17,500 17,500 17,500 17,500 17,500 17,500 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%17,500 17,500 17,500 17,500 17,500 17,500 17,500 17,500 17,500 17,500 17,500 17,500 17,500 14,875 14,875 14,875 14,875 14,875 14,875 14,875 14,875 14,875 14,875 14,875 14,875 14,875 14,875 14,875 14,875 14,875 14,875 14,875 14,875 14,875 14,875 14,875 14,875 14,875 14,875 178,500 178,500 178,500 178,500 178,500 178,500 178,500 178,500 178,500 178,500 178,500 178,500 178,500 (23,205) (23,205) (23,205) (23,205) (23,205) (23,205) (23,205) (23,205) (23,205) (23,205) (23,205) (23,205) (23,205) 201,705 201,705 201,705 201,705 201,705 201,705 201,705 201,705 201,705 201,705 201,705 201,705 201,705 201,705 201,705 201,705 201,705 201,705 201,705 201,705 201,705 201,705 201,705 201,705 201,705 201,705 19% 19% 19% 19% 19% 19% 19% 19% 19% 19% 19% 19% 19%(1,196,025) (994,320) (792,615) (590,910) (389,205) (187,500) 14,205 215,910 417,615 619,320 821,025 ####### #######Page A-9 of 33
Kalispell Core Area Plan Financial Feasibility AnalysisTable 6:Financial Feasibility - Multifamily ResidentialBuildoutYrYrYrYrYrYrYrYrBuildout YearYear1 2 3 4 5 6 7 8 Residential Development - UnitsApartments - For Lease- - - 25 25 Cumulative Units Available- - - 25 25 25 25 50 Absorption Assumptions - % of Total0% 0% 0% 25% 50% 75% 100% 63%Apartments Rented50 - - - 6 13 19 25 31 Net Leasable Area 1,050 - - - 6,563 13,125 19,688 26,250 32,813 Lease Rate/sf/moGross Lease Revenue 1.05 12,237,750 - - - 82,688 165,375 248,063 330,750 413,438 % of Gross Lease RevenueOperating Costs-13% (1,590,908) - - - (10,749) (21,499) (32,248) (42,998) (53,747) Net Operating Income (Before Debt Service)- - - 71,938 143,876 215,814 287,753 359,691 Total Development CostsTotal sf52,500 Cost/ Sf148 Total 7,768,125$ Debt 60% 4,660,875$ Equity 40% 3,107,250$ Interest Rate 7.5%Term 10 Down Payment 3,107,250.00$ Points + Closing Costs 3% 93,217.50$ Total Cash Investment 3,200,467.50$ Debt Service($6,790,239) ($679,024) ($679,024) ($679,024) ($679,024) ($679,024) ($679,024)Cash Flow3,856,604 - (679,024) (607,086) (535,148) (463,210) (391,271) (319,333) Cash on Cash Return0% -21% -19% -17% -14% -12% -10%Cumulative Cash Flow (for Payback Year)- (679,024) (1,286,110) (1,821,257) (2,284,467) (2,675,738) (2,995,072) Return on Investment (Cash on Cash) 18%Housing AssumptionsNumber of Units 50Year Selling Commences 1Absorption (per Year) 75Average Unit Size 1,050Net Saleable Area 1,050Lease Rate/sf $1.50Housing Occupancy Factor 100%Operating Cost AssumptionsLeasing Costs 3%Operating Costs (% Revenue) 5%Stabilized Vacancy Factor 5%Total13%Source: Kalispell Core Area Plan; Willdan, 2013.Page A-10 of 33
Kalispell Core Area Plan Financial Feasibility AnalysisTable 6:Financial Feasibility - Multifamily ResidentialBuildoutBuildout YearYearResidential Development - UnitsApartments - For LeaseCumulative Units AvailableAbsorption Assumptions - % of TotalApartments Rented50 Net Leasable Area 1,050 Lease Rate/sf/moGross Lease Revenue 1.05 12,237,750 % of Gross Lease RevenueOperating Costs-13% (1,590,908) Net Operating Income (Before Debt Service)Total Development CostsTotal sf52,500 Cost/ Sf148 Total 7,768,125$ Debt 60% 4,660,875$ Equity 40% 3,107,250$ Interest Rate 7.5%Term 10 Down Payment 3,107,250.00$ Points + Closing Costs 3% 93,217.50$ YrYrYrYrYrYrYrYr9 10 11 12 13 14 15 16 50 50 50 50 50 50 50 50 75% 88% 100% 100% 100% 100% 100% 100%38 44 50 50 50 50 50 50 39,375 45,938 52,500 52,500 52,500 52,500 52,500 52,500 496,125 578,813 661,500 661,500 661,500 661,500 661,500 661,500 (64,496) (75,246) (85,995) (85,995) (85,995) (85,995) (85,995) (85,995) 431,629 503,567 575,505 575,505 575,505 575,505 575,505 575,505 Total Cash Investment 3,200,467.50$ Debt Service($6,790,239)Cash Flow3,856,604 Cash on Cash ReturnCumulative Cash Flow (for Payback Year)Return on Investment (Cash on Cash) 18%Housing AssumptionsNumber of Units 50Year Selling Commences 1Absorption (per Year) 75Average Unit Size 1,050Net Saleable Area 1,050Lease Rate/sf $1.50Housing Occupancy Factor 100%Operating Cost AssumptionsLeasing Costs 3%Operating Costs (% Revenue) 5%Stabilized Vacancy Factor 5%Total13%Source: Kalispell Core Area Plan; Willdan, 2013.($679,024) ($679,024) ($679,024) ($679,024)(247,395) (175,457) (103,519) (103,519) 575,505 575,505 575,505 575,505 -8% -5% -3% -3% 18% 18% 18% 18%(3,242,467) (3,417,924) (3,521,443) (3,624,961) (3,049,456) (2,473,951) (1,898,446) (1,322,941) Page A-11 of 33
Kalispell Core Area Plan Financial Feasibility AnalysisTable 6:Financial Feasibility - Multifamily ResidentialBuildoutBuildout YearYearResidential Development - UnitsApartments - For LeaseCumulative Units AvailableAbsorption Assumptions - % of TotalApartments Rented50 Net Leasable Area 1,050 Lease Rate/sf/moGross Lease Revenue 1.05 12,237,750 % of Gross Lease RevenueOperating Costs-13% (1,590,908) Net Operating Income (Before Debt Service)Total Development CostsTotal sf52,500 Cost/ Sf148 Total 7,768,125$ Debt 60% 4,660,875$ Equity 40% 3,107,250$ Interest Rate 7.5%Term 10 Down Payment 3,107,250.00$ Points + Closing Costs 3% 93,217.50$ YrYrYrYrYrYrYrYrYr17 18 19 20 21 22 23 24 2550 50 50 50 50 50 50 50 50 100% 100% 100% 100% 100% 100% 100% 100% 100%50 50 50 50 50 50 50 50 50 52,500 52,500 52,500 52,500 52,500 52,500 52,500 52,500 52,500 661,500 661,500 661,500 661,500 661,500 661,500 661,500 661,500 661,500 (85,995) (85,995) (85,995) (85,995) (85,995) (85,995) (85,995) (85,995) (85,995) 575,505 575,505 575,505 575,505 575,505 575,505 575,505 575,505 575,505 Total Cash Investment 3,200,467.50$ Debt Service($6,790,239)Cash Flow3,856,604 Cash on Cash ReturnCumulative Cash Flow (for Payback Year)Return on Investment (Cash on Cash) 18%Housing AssumptionsNumber of Units 50Year Selling Commences 1Absorption (per Year) 75Average Unit Size 1,050Net Saleable Area 1,050Lease Rate/sf $1.50Housing Occupancy Factor 100%Operating Cost AssumptionsLeasing Costs 3%Operating Costs (% Revenue) 5%Stabilized Vacancy Factor 5%Total13%Source: Kalispell Core Area Plan; Willdan, 2013.575,505 575,505 575,505 575,505 575,505 575,505 575,505 575,505 575,505 18% 18% 18% 18% 18% 18% 18% 18% 18%(747,436) (171,931) 403,574 979,079 1,554,584 2,130,089 2,705,594 3,281,099 3,856,604 Page A-12 of 33
Kalispell Core Area Plan Financial Feasibility AnalysisTable 7:Commercial & Residential Construction Cost YrYrYrYrYrYrYrYrYrYrYrYrBuildout YearTotal Cost1 2 3 4 5 6 7 8 9 10 11 12 Retail DevelopmentRetail - Apparel and Soft Goods16,313,000 - - 653,000 - - - - - 13,050,000 - - 2,610,000 Retail - Restaurant (Casual & Full Service)4,703,000 - - - - - - - - 3,135,000 - - 1,568,000 Subtotal Retail (SF) 21,016,000 - - 653,000 - - - - - 16,185,000 - - 4,178,000 Office DevelopmentOffice for Lease (per sf) 2,555,000 - - 365,000 - - - 1,460,000 - - 730,000 - - Residential DevelopmentApartments - For Lease7,768,000 - - - 3,884,000 - - - 3,884,000 - - - - Low-Income Housing Tax Credit Units4,872,000 - - - - - - 4,872,000 - - - - - Condominium 25,000 - - - - - - - - - 25,000 - - Subtotal 12,665,000 - - - 3,884,000 - - 4,872,000 3,884,000 - 25,000 - - Total Annual Construction Investment 36,236,000 - - 1,018,000 3,884,000 - - 6,332,000 3,884,000 16,185,000 755,000 - 4,178,000 Source: Kalispell Core Area Plan; Willdan, 2013.Page A-13 of 33
Kalispell Core Area Plan Financial Feasibility AnalysisTable 7:Commercial & Residential Construction Cost Buildout YearTotal CostRetail DevelopmentRetail - Apparel and Soft Goods16,313,000 Retail - Restaurant (Casual & Full Service)4,703,000 Subtotal Retail (SF) 21,016,000 Office DevelopmentOffice for Lease (per sf) 2,555,000 Residential DevelopmentApartments - For Lease7,768,000 Low-Income Housing Tax Credit Units4,872,000 Condominium 25,000 Subtotal 12,665,000 Total Annual Construction Investment 36,236,000 Source: Kalispell Core Area Plan; Willdan, 2013.YrYrYrYrYrYrYrYrYrYrYrYrYr13 14 15 16 17 18 19 20 21 22 23 24 25- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Page A-14 of 33
Kalispell Core Area Plan Financial Feasibility AnalysisTable 8:Real Property Tax AssumptionsBusinessProperty Type/DescriptionTotal Size (sf or units)Taxable Value - LandTaxable Value - BuildingTaxable Value - LandTaxable Value - BuildingIncremental Assessed Value (Land + Building)Total Incremental Taxes PSF After RenovationSykes Supermarket/ Restaurant/Aptcommercial- multifamily imp3,466 695 723 1,883 4,963 3,108 0.90 Sykes Supermarket/ Restaurant/Aptmixed use- retail, storage & apts27,540 2,409 - 2,814 52,521 47,298 1.72 Sykes Supermarket/ Restaurant/Aptrestaurant 7,466 2,409 4,523 2,738 8,042 7,418 0.99 Sykes Supermarket/ Restaurant/Aptretail2,700 2,409 1,652 2,738 2,239 (1,256)(0.47) Appleway Trail Aptsapts71,320 10,665 83,733 73,068 1.02 Brannigan's Pub/Restaurant /1restaurant/bar13,000 7,243 5,330 (1,913)A to Z /2retail7,540 7,414 8,853 9,747 10,120 1,812 0.24 Depot Place Aptsapts35,607 6,281 15,681 9,400 0.26 Kalispell Center Mall /3retail/hotel297,696 103,023 231,119 103,023 231,119 256,192 Assumed Averages for TIF CalculationsIncremental Assessed Value psfRetail Development 0.26$ Office Development 0.24$ Apartments - For Lease 0.98$ Low-Income Housing Tax Credit Units 0.90$ Condominium 1.02$ 1/ Completed remodel value has not been picked up for 2013 yet. Renovation not complete as of 1/1/13. Full renovation value will be added for 2014 tax year. 2/ value only at 50% complete construction for 2013. This project has also applied for a property tax exemption.3/ completed remodel value for 2013 still pending review Before Renovation After Renovation After RenovationPage A-15 of 33
Kalispell Core Area Plan Financial Feasibility AnalysisTable 9:Fiscal Benefits at Buildout - Summary of ScenariosRedevelopment ProgramDevelopment Program (sf)Incremental Taxable Value Real Property TaxesDevelopment Program (sf)Incremental Taxable Value Real Property TaxesDevelopment Program (sf)Incremental Taxable Value Real Property TaxesRetail Development (sf)Retail - Apparel and Soft Goods0.26$ - -$ -$ 62,500 16,015$ 10,998$ 92,500 23,702$ 16,276$ Retail - Restaurant (Casual & Full Service) 0.26$ - -$ -$ 15,000 3,844$ 2,639$ 25,000 6,406$ 4,399$ Subtotal- -$ -$ 77,500 19,858$ 13,637$ 117,500 30,108$ 20,675$ Office Development (sf)0.24$ - -$ -$ 17,500 4,206$ 2,888$ 17,500 4,206$ 2,888$ Residential Development (units)Apartments - For Lease 0.98$ - -$ -$ 52,500 51,222$ 35,175$ 78,750 76,833$ 52,763$ Low-Income Housing Tax Credit Units0.90$ - -$ -$ 32,000 28,695$ 19,705$ 64,000 57,389$ 39,411$ Condominium 1.02$ - -$ -$ - -$ -$ 25,000 25,613$ 17,589$ Subtotal- -$ -$ 84,500 79,917$ 54,881$ 167,750 159,836$ 109,762$ Total Incremental Value/Real Property Taxes -$ -$ 179,500 103,981$ 71,406$ 302,750 194,149$ 133,326$ Assumptions:2013 Flathead County Millage Rate = 0.68672Source: Kalispell Core Area Plan; Willdan, 2013. GrowthAverage Incremental Real Property Tax Values/sfScenario 1: Status Quo Scenario 2: ConservativePage A-16 of 33
Kalispell Core Area Plan Financial Feasibility AnalysisTable 10:YrYrYrYrYrYrYrYrYrYrYrYrBuildout YearTotal Buildout1 2 3 4 5 6 7 8 9 10 11 12 Retail DevelopmentRetail - Apparel and Soft Goods 62,500 2,500 50,000 10,000 Retail - Restaurant (Casual & Full Service) 15,000 10,000 5,000 Subtotal Retail (sf) 77,500 - - 2,500 - - - - 60,000 - - 15,000 Office Development 17,500 2,500 10,000 5,000 Residential Development - UnitsApartments - For Lease 50 25 25 Low-Income Housing Tax Credit Units 40 40 Condominium - Total Units 90 - - - 25 - - 40 25 - - - - Residential Development - sf sf/UnitApartments - For Lease 1,050 52,500 - - - 26,250 - - - 26,250 - - - - Low-Income Housing Tax Credit Units 800 32,000 - - - - - - 32,000 - - - - - Condominium 1,250 - - - - - - - - - - - - - Total Units 84,500 - - - 26,250 - - 32,000 26,250 - - - - Incremental Real Property Tax Revenues Tax Value PSF / 1 Retail DevelopmentRetail - Apparel and Soft Goods 0.26$ -$ -$ 440$ -$ -$ -$ -$ -$ 8,798$ -$ -$ 1,760$ Retail - Restaurant (Casual & Full Service) 0.26$ -$ -$ -$ -$ -$ -$ -$ -$ 1,760$ -$ -$ 880$ Subtotal -$ -$ 440$ -$ -$ -$ -$ -$ 10,558$ -$ -$ 2,639$ Office Development0.24$ -$ -$ 413$ -$ -$ -$ 1,650$ -$ -$ 825$ -$ -$ Residential DevelopmentApartments - For Lease 0.98$ -$ -$ -$ 17,588$ -$ -$ -$ 17,588$ -$ -$ -$ -$ Low-Income Housing Tax Credit Units 0.90$ -$ -$ -$ -$ -$ -$ 19,705$ -$ -$ -$ -$ -$ Condominium 1.02$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Subtotal -$ -$ -$ 17,588$ -$ -$ 19,705$ 17,588$ -$ -$ -$ -$ Annual Real Property Tax Revenues -$ -$ 852$ 17,588$ -$ -$ 21,356$ 17,588$ 10,558$ 825$ -$ 2,639$ Cumulative Tax Revenues 1,358,504 -$ -$ 852$ 18,440$ 18,440$ 18,440$ 39,796$ 57,383$ 67,941$ 68,766$ 68,766$ 71,406$ 1/ 2013 Flathead County Millage Rate = 68.67%Source: Kalispell Core Area Plan; Willdan, 2013.Redevelopment Phasing & Tax Generation Assumptions - Scenario 2: ConservativePage A-17 of 33
Kalispell Core Area Plan Financial Feasibility AnalysisTable 10:Buildout YearRetail DevelopmentRetail - Apparel and Soft GoodsRetail - Restaurant (Casual & Full Service)Subtotal Retail (sf)Office DevelopmentResidential Development - UnitsApartments - For LeaseLow-Income Housing Tax Credit UnitsCondominiumTotal UnitsResidential Development - sf sf/UnitApartments - For Lease 1,050 Low-Income Housing Tax Credit Units 800 Condominium 1,250 Total UnitsIncremental Real Property Tax Revenues Tax Value PSF / 1 Retail DevelopmentRetail - Apparel and Soft Goods 0.26$ Retail - Restaurant (Casual & Full Service) 0.26$ SubtotalOffice Development0.24$ Residential DevelopmentApartments - For Lease 0.98$ Low-Income Housing Tax Credit Units 0.90$ Condominium 1.02$ SubtotalAnnual Real Property Tax RevenuesCumulative Tax Revenues1/ 2013 Flathead County Millage Rate = 68.67%Source: Kalispell Core Area Plan; Willdan, 2013.Redevelopment Phasing & Tax Generation Assumptions - Scenario 2: ConservativeYrYrYrYrYrYrYrYrYrYrYrYrYr13 14 15 16 17 18 19 20 21 22 23 24 25- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 71,406$ 71,406$ 71,406$ 71,406$ 71,406$ 71,406$ 71,406$ 71,406$ 71,406$ 71,406$ 71,406$ 71,406$ 71,406$ Page A-18 of 33
Kalispell Core Area Plan Financial Feasibility AnalysisTable 11:Redevelopment Phasing & Tax Generation Assumptions - Scenario 3: Optimistic YrYrYrYrYrYrYrYrYrYrYrYrBuildout YearTotal Buildout1 2 3 4 5 6 7 8 9 10 11 12 Retail Development (sf)Retail - Apparel and Soft Goods 92,500 2,500 30,000 50,000 10,000 Retail - Restaurant (Casual & Full Service) 25,000 10,000 10,000 5,000 Subtotal Retail (sf) 117,500 - - 2,500 - 40,000 - - - 60,000 - - 15,000 Office Development (sf) 17,500 2,500 10,000 5,000 Residential Development (Units)Apartments - For Lease 75 25 25 25 Low-Income Housing Tax Credit Units 80 40 40 Condominium 20 20 Total Units 175 - - - 25 - - 40 - 25 20 - 65 Residential Development (sf) sf/UnitApartments - For Lease 1,050 78,750 - - - 26,250 - - - - 26,250 - - 26,250 Low-Income Housing Tax Credit Units 800 64,000 - - - - - - 32,000 - - - - 32,000 Condominium 1,250 25,000 - - - - - - - - - 25,000 - - Total Units 167,750 - - - 26,250 - - 32,000 - 26,250 25,000 - 58,250 Incremental Real Property Tax Revenues Tax Value PSF /1Incremental Real Property Tax Revenues/ 1 Retail - Apparel and Soft GoodsRetail - Restaurant (Casual & Full Service) 0.26$ -$ -$ 440$ -$ 5,279$ -$ -$ -$ 8,798$ -$ -$ 1,760$ Subtotal Retail (sf) 0.26$ -$ -$ -$ -$ 1,760$ -$ -$ -$ 1,760$ -$ -$ 880$ Subtotal -$ -$ 440$ -$ 7,038$ -$ -$ -$ 10,558$ -$ -$ 2,639$ Office Development0.24$ -$ -$ 413$ -$ -$ -$ 1,650$ -$ -$ 825$ -$ -$ Residential DevelopmentLow-Income Housing Tax Credit Units 0.98$ -$ -$ -$ 17,588$ -$ -$ -$ -$ 17,588$ -$ -$ 17,588$ Condominium 0.90$ -$ -$ -$ -$ -$ -$ 19,705$ -$ -$ -$ -$ 19,705$ Total Units 1.02$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 17,589$ -$ -$ Subtotal -$ -$ -$ 17,588$ -$ -$ 19,705$ -$ 17,588$ 17,589$ -$ 37,293$ Annual Real Property Tax Revenues -$ -$ 852$ 17,588$ 7,038$ -$ 21,356$ -$ 28,145$ 18,414$ -$ 39,932$ Cumulative Tax Revenues 2,292,245 -$ -$ 852$ 18,440$ 25,479$ 25,479$ 46,834$ 46,834$ 74,979$ 93,393$ 93,393$ 133,326$ 1/ 2013 Flathead County Millage Rate = 68.67%Source: Kalispell Core Area Plan; Willdan, 2013.Page A-19 of 33
Kalispell Core Area Plan Financial Feasibility AnalysisTable 11:Redevelopment Phasing & Tax Generation Assumptions - ScenarBuildout YearRetail Development (sf)Retail - Apparel and Soft GoodsRetail - Restaurant (Casual & Full Service)Subtotal Retail (sf)Office Development (sf)Residential Development (Units)Apartments - For LeaseLow-Income Housing Tax Credit UnitsCondominiumTotal UnitsResidential Development (sf) sf/UnitApartments - For Lease 1,050 Low-Income Housing Tax Credit Units 800 Condominium 1,250 Total UnitsIncremental Real Property Tax Revenues Tax Value PSF /1YrYrYrYrYrYrYrYrYrYrYrYrYr13 14 15 16 17 18 19 20 21 22 23 24 25- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Incremental Real Property Tax Revenues/ 1 Retail - Apparel and Soft GoodsRetail - Restaurant (Casual & Full Service) 0.26$ Subtotal Retail (sf) 0.26$ SubtotalOffice Development0.24$ Residential DevelopmentLow-Income Housing Tax Credit Units 0.98$ Condominium 0.90$ Total Units 1.02$ SubtotalAnnual Real Property Tax RevenuesCumulative Tax Revenues1/ 2013 Flathead County Millage Rate = 68.67%Source: Kalispell Core Area Plan; Willdan, 2013.-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 133,326$ 133,326$ 133,326$ 133,326$ 133,326$ 133,326$ 133,326$ 133,326$ 133,326$ 133,326$ 133,326$ 133,326$ 133,326$ Page A-20 of 33
Kalispell Core Area Plan Financial Feasibility AnalysisTable 12:Linear Park Implementation Strategy: Sources & Uses of FundingPrivate/ Non-Profit Other Grant Funding City of Kalispell Private/ Non-Profit Other Grant Funding City of KalispellPhasing Unit TypeUnits Total Cost (% of Total) (% of Total) (% of Total) (Total $) (Total $) (Total $) (Plan Year)Summary of Sources and Uses of Funding$4,452,354 6% 6% 88% $281,600 $247,500 $3,923,254 1 Linear Park Land/Easement AcquisitionBN/Property owners donates/transfers deed to City of Kalispell via rail banking mechanismLegal Fees 5,000$ 1 5,000$ 0% 0% 100% $0 $0 $5,000 1-32 Linear Park Environmental RemediationPhase I 5,000$ 1 5,000$ 0% 100% 0% $0 $5,000 $0environmental assessmentPhase II 50,000$ 1 50,000$ 0% 100% 0% $0 $50,000 $0 1-355,000$ -$ 55,000$ -$ 3 BNSF Track RemovalBNSF removes & recycles rails & tiestbd 17,200 -$ 100% 0% 0% $0 $0 $0 1-34 Park Master PlanServices 20,000$ 1 20,000$ 0% 0% 100% $0 $0 $20,000 1-3Potential Funding SourcesCore Area Linear Park Improvement Unit Cost$/linear ft rails /1Page A-21 of 33
Kalispell Core Area Plan Financial Feasibility AnalysisTable 12:Linear Park Implementation Strategy: Sources & Uses of FundingPrivate/ Non-Profit Other Grant Funding City of Kalispell Private/ Non-Profit Other Grant Funding City of KalispellPhasing Unit TypeUnits Total Cost (% of Total) (% of Total) (% of Total) (Total $) (Total $) (Total $) (Plan Year)Summary of Sources and Uses of Funding$4,452,354 6% 6% 88% $281,600 $247,500 $3,923,254 Potential Funding SourcesCore Area Linear Park Improvement Unit Cost5 Installation of Shared Use TrailShared use trail construction (concrete) $/linear ft 45.00$ 17,200 774,000$ 0% 0% 100% $0 $0 $774,000Lighting - Poles $/Pole 4,400$ 45 198,000$ 0% 0% 100% $0 $0 $198,000Lighting - Bollards $/Bollard 2,200$ 45 99,000$ 0% 0% 100% $0 $0 $99,000Electrical wiring $/linear ft 1.74$ 17,200 30,000$ 0% 0% 100% $0 $0 $30,000 4-6Irrigation $/sq ft 0.30$ 619,200 185,760$ 0% 0% 100% $0 $0 $185,760Sod & seed $/sq ft 0.19$ 619,200 114,552$ 0% 0% 100% $0 $0 $114,552Trees & perennials $/linear ft 1.31$ 17,200$ 22,500$ 0% 0% 100% $0 $0 $22,500150 ft 1,423,812$ -$ -$ 1,423,812$ 6Regional Trailhead Connection Points:Trail improvements to include:Trail features to include: grading/paving/mulching, site amenities (seating), branded signage & wayfinding funded by public and private (naming rights/sponsorships)North & East Connection: Connect Woodland Park & Lawrence Park via BN Highway 2 overpass (“Kalispell Gateway Bridge”)4-6West Connection: Connect the Meridian Trail to the Kila Trail via a new trail head at West 5th Avenue WNSouth Connection: Connect the KLP to Somers/Flathead Lake$/trailhead 15,000$ 4 60,000$ 50% 0% 50% $30,000 $0 $30,0007Kalispell Gateway Bridge$/bridge improvements: $/ft 100$ 600 60,000$ 0% 100% 0% $0 $60,000 $0fencing$/linear ft 125$ 300 37,500$ 0% 100% 0% $0 $37,500 $0 4-6travel surface$/sign 15,000$ 1 15,000$ 0% 100% 0% $0 $15,000 $0signage112,500$ $0 $112,500 $08 KLP Trail Feature - Depot Park installation of caboose climbing equipment (donated by BNSF)$/locomotive150 000$1150 000$100%0%0%150 000$$0-$installation of caboose climbing equipment (donated by BNSF)$/locomotive150,000$ 1150,000$ 100%0%0%150,000$ $0-$ $/site 50,000$ 1 50,000$ 50% 0% 50% 25,000$ $0 25,000$ 4-6200,000$ 175,000$ -$ 25,000$ 9 KLP Trail Feature - Appleway Trail Senior Outdoor Fitness Parkinstallation of comfort station amenities:legal fees 2,500$ 1 2,500$ 0% 0% 100% -$ $0 2,500$ site acquisition (land donated to non-profit)$/site 33,600$ 1 33,600$ 100% 0% 0% 33,600$ $0 -$ outdoor fitness equipment /4$/facility 9,000$ 2 18,000$ 100% 0% 0% 18,000$ $0 -$ 4-6restrooms (chemical toilets)$/trailhead 5,000$ 2 10,000$ 100% 0% 0% 10,000$ $0 -$ wayfinding signage/trailhead64,100$ 61,600$ -$ 2,500$ 10 KLP Trail Feature - Flathead Electric Co-Op ParkPhase I & II Environmental5,000$ 1 5,000$ 0% 100% 0% -$ 5,000$ -$ Phase III & IV Environmental 50,000$ 1 50,000$ 0% 100% 0% -$ 50,000$ -$ land acquisition (donation or exchange TBD)$/acre -$ 2 -$ 100% 0% 0% -$ -$ -$ 4-6restrooms$/facility 15,000$ 1 15,000$ 100% 0% 0% 15,000$ -$ -$ parking (potentially to be shared with FEC) /5$/parking lot 10,000$ 1 10,000$ 0% 0% 100% -$ -$ 10,000$ trailhead 4,000$ 1 4,000$ 0% 0% 100% -$ -$ 4,000$ 84,000$ 15,000$ 55,000$ 14,000$ park site prep, caboose relocation, security, amenities (seating), & interpretative signage costsPage A-22 of 33
Kalispell Core Area Plan Financial Feasibility AnalysisTable 12:Linear Park Implementation Strategy: Sources & Uses of FundingPrivate/ Non-Profit Other Grant Funding City of Kalispell Private/ Non-Profit Other Grant Funding City of KalispellPhasing Unit TypeUnits Total Cost (% of Total) (% of Total) (% of Total) (Total $) (Total $) (Total $) (Plan Year)Summary of Sources and Uses of Funding$4,452,354 6% 6% 88% $281,600 $247,500 $3,923,254 Potential Funding SourcesCore Area Linear Park Improvement Unit Cost11 Pedestrian Crossing Upgrades (Railroad Conversions) :pedestrian safety features (crossing lights) at:5th Avenue EN $/crossing 598,850$ 1 598,850$ 0% 0% 100% -$ -$ 598,850$ 7th Avenue WN $/crossing 705,091$ 1 705,091$ 0% 0% 100% -$ -$ 705,091$ 7-101 1,303,941$ -$ -$ 1,303,941$ 12 Street Extensions (Railroad Conversions) :6th Avenue WN$/crossing 629,460 1 629,460$ 0% 0% 100% -$ -$ 629,460$ 8th Avenue WN$/crossing 444,541$ 1 444,541$ 0% 0% 100% -$ -$ 444,541$ 7-101,074,001$ -$ -$ 1,074,001$ 13 KLP Trail Feature - Kalispell Center Mall Clock Tower Plazastreetscape upgrades and pedestrian plazatbd tbd tbd 100% 0% 0% -$ $0 -$ developer constructed clock tower constructiontbd tbd tbd 100% 0% 0% -$ $0 -$ 7-10-$ -$ -$ -$ 14 Woodland Park Amphitheater300-400 seats; Location to be determined$/site $50,000 1 50,000$ 0% 50% 50% -$ 25,000$ 25,000$ 7-1015Health, Wellness, Sustainability ProgrammingRecycling Receptacles - private contractor $/Activity Centertbd -$ 100% 0% 0% -$ -$ -$ Public Outreach Boards - donated by medical community $/Activity Centertbd -$ 100% 0% 0% -$ -$ -$ 7-10Portable Vending Pads $/Activity Centertbd -$ 100% 0% 0% -$ -$ -$ -$ -$ -$ 1/ Cost to BNSF net of iron disposition value is to be determined1/ Cost to BNSF net of iron disposition value is to be determined.2/ assumes City will enter into long-term lease with All Families LLC for center operations3/ Linear Park area assumes: length17,200 width60 total area (sq. ft.)1,032,000 sq. ft/acre45,560 acres23 Tier 1 Park Maintenance cost/acre1,200.00 Annual Maintenance Cost:27,182 4/ Parking costs potentially funded by grant from Roundup for Safety.5/ Appleway Senior Fitness Center assumes cost estimates provided by LifeTrail Advanced Wellness System.Source: City of Kalispell; BNSF Railway/WATCO Mission Mountain Railroad; Flathead Valley Economic Development Authority; Willdan, 2013.Page A-23 of 33
Table 13:Kalispell Core Area Plan Financial Feasibility AnalysisSummary of Linear Park Development Costs and Phasing RecommendationsPrivate/ Non-Profit Other Grant Funding City of Kalispell Total Cost1 Linear Park Land/Easement Acquisition -$ -$ 5,000$ 5,000$ 2 Linear Park Environmental Remediation -$ 55,000$ -$ 55,000$ 3 BNSF Track Removal -$ -$ -$ -$ 4 Park Master Plan -$ -$ 20,000$ 20,000$ 5 Installation of Shared Use Trail -$ -$ 1,423,812$ 1,423,812$ Subtotal -$ 55,000$ 1,448,812$ 1,503,812$ 6 Regional Trailhead Connection Points: 30,000$ -$ 30,000$ 60,000$ 7 Kalispell Gateway Bridge -$ 112,500$ -$ 112,500$ 8 KLP Trail Feature - Depot Park 175,000$ -$ 25,000$ 200,000$ 9 KLP Trail Feature - Appleway Trail Senior Outdoor Fitness Park61,600$ -$ 2,500$ 64,100$ 10 KLP Trail Feature - Flathead Electric Co-Op Park15,000$ 55,000$ 14,000$ 84,000$ 11 Pedestrian Crossing Upgrades (Railroad Conversions) : -$ -$ 1,303,941$ 1,303,941$ Subtotal 281,600$ 167,500$ 1,375,441$ 1,824,541$ 12 Street Extensions (Railroad Conversions) : -$ -$ 1,074,001$ 1,074,001$ 13 KLP Trail Feature - Kalispell Center Mall Clock Tower Plaza-$ -$ -$ -$ 14 Woodland Park Amphitheater-$ 25,000$ 25,000$ 50,000$ 15 Health, Wellness, Sustainability Programming -$ -$ -$ -$ Subtotal -$ 25,000$ 1,099,001$ 1,124,001$ Total Linear Park Costs - City of Kalispell 281,600$ 247,500$ 3,923,254$ 4,452,354$ 6% 6% 88% 100%Source: City of Kalispell; Willdan, 2013.Near Term: Years 1-3Mid-Term: Years 4-6Long-Term: Years 7-10Page A-24 of 33
Kalispell Core Area Plan Financial Feasibility AnalysisTable 14:West Side TIF District Projections: Scenario 1 - Status QuoImplementation Year 0 1 2 3 4 5 6 7 8TIF YEAR2 34567 8 910Base Year Value 2013 2014 2015 2016 2017 2018 2019 2020 2021Growth Rate0% 0% 0% 0% 0% 0% 0% 0%Taxable Property Value 11,551,896 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 Total12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 Increase666,703 666,703 666,703 666,703 666,703 666,703 666,703 666,703 666,703 Increment457,838 457,838 457,838 457,838 457,838 457,838 457,838 457,838 457,838 Expiring Developer Payment(50,000) (50,000) (50,000) (50,000) (50,000) (50,000) (50,000) (50,000) (50,000) Remaining TIF Revenue407,838 407,838 407,838 407,838 407,838 407,838 407,838 407,838 407,838 Cumulative Value407,838 815,676 1,223,514 1,631,352 2,039,190 2,447,028 2,854,866 3,262,704 3,670,542 Current TIF Value 2,562,811 Cumulative Value (including current TIF) 3,020,649 3,478,487 3,936,325 4,394,163 4,852,001 5,309,839 5,767,677 6,225,515 6,683,353 Core Area Plan CostsRail Served Industrial Park(2,676,454) (2,676,454) Core Area Linear Park(3,923,254) (1,448,812) (30,000) (41,500) (1,303,941) (1,074,001) (25,000) Subtotal (6,599,708) - (2,676,454) (1,448,812) (30,000) (41,500) (1,303,941) (1,074,001) (25,000) - Core Area Plan Financial Feasibility Analysis CumulativeTIF Fund (Balance Forward) 2,562,811 2,562,811 2,970,649 702,033 (338,941) 38,897 405,235 (490,868) (1,157,031) (774,193) Incremental TIF Revenues (Baseline) 9,788,112 407,838 407,838 407,838 407,838 407,838 407,838 407,838 407,838 407,838 Incremental Taxes: New Dev/Redevelopment - Rail Served Industrial Park Costs (2,676,454) - (2,676,454) - - - - - - - Core Area Linear Park Costs (3,923,254) - - (1,448,812) (30,000) (41,500) (1,303,941) (1,074,001) (25,000) - TIF Funds Remaining5,751,215 2,970,649$ 702,033$ (338,941)$ 38,897$ 405,235$ (490,868)$ (1,157,031)$ (774,193)$ (366,355)$ Assumptions:2013 Flathead County Millage Rate = 0.68672Source: Kalispell Core Area Plan; Willdan, 2013.Page A-25 of 33
Kalispell Core Area Plan Financial Feasibility AnalysisTable 14:West Side TIF District Projections: Scenario 1 - Status QuoImplementation YearTIF YEARBase Year ValueGrowth RateTaxable Property Value 11,551,896 TotalIncreaseIncrementExpiring Developer PaymentRemaining TIF RevenueCumulative ValueCurrent TIF Value 2,562,811 Cumulative Value (including current TIF)Core Area Plan CostsRail Served Industrial Park(2,676,454) Core Area Linear Park(3,923,254) Subtotal (6,599,708) Core Area Plan Financial Feasibility Analysis CumulativeTIF Fund (Balance Forward) 2,562,811 Incremental TIF Revenues (Baseline) 9,788,112 Incremental Taxes: New Dev/Redevelopment - Rail Served Industrial Park Costs (2,676,454) Core Area Linear Park Costs (3,923,254) TIF Funds Remaining5,751,215 Assumptions:2013 Flathead County Millage Rate = 0.68672Source: Kalispell Core Area Plan; Willdan, 2013.910111213 14 15 1611 12 13 14 15 16 17 182022 2023 2024 2025 2026 2027 2028 20290% 0% 0% 0% 0% 0% 0% 0%12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 666,703 666,703 666,703 666,703 666,703 666,703 666,703 666,703 457,838 457,838 457,838 457,838 457,838 457,838 457,838 457,838 (50,000) (50,000) (50,000) (50,000) (50,000) (50,000) (50,000) (50,000) 407,838 407,838 407,838 407,838 407,838 407,838 407,838 407,838 4,078,380 4,486,218 4,894,056 5,301,894 5,709,732 6,117,570 6,525,408 6,933,246 7,141,191 7,599,029 8,056,867 8,514,705 8,972,543 9,430,381 9,888,219 10,346,057 - - - - - - - - (366,355) 41,483 449,321 857,159 1,264,997 1,672,835 2,080,673 2,488,511 407,838 407,838 407,838 407,838 407,838 407,838 407,838 407,838 - - - - - - - - - - - - - - - - 41,483$ 449,321$ 857,159$ 1,264,997$ 1,672,835$ 2,080,673$ 2,488,511$ 2,896,349$ Page A-26 of 33
Kalispell Core Area Plan Financial Feasibility AnalysisTable 14:West Side TIF District Projections: Scenario 1 - Status QuoImplementation YearTIF YEARBase Year ValueGrowth RateTaxable Property Value 11,551,896 TotalIncreaseIncrementExpiring Developer PaymentRemaining TIF RevenueCumulative ValueCurrent TIF Value 2,562,811 Cumulative Value (including current TIF)Core Area Plan CostsRail Served Industrial Park(2,676,454) Core Area Linear Park(3,923,254) Subtotal (6,599,708) Core Area Plan Financial Feasibility Analysis CumulativeTIF Fund (Balance Forward) 2,562,811 Incremental TIF Revenues (Baseline) 9,788,112 Incremental Taxes: New Dev/Redevelopment - Rail Served Industrial Park Costs (2,676,454) Core Area Linear Park Costs (3,923,254) TIF Funds Remaining5,751,215 Assumptions:2013 Flathead County Millage Rate = 0.68672Source: Kalispell Core Area Plan; Willdan, 2013.17 18 19 20 21 22 2319 20 21 22 23 24 252030 2031 2032 2033 2034 2035 20360% 0% 0% 0% 0% 0% 0%12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 666,703 666,703 666,703 666,703 666,703 666,703 666,703 457,838 457,838 457,838 457,838 457,838 457,838 457,838 (50,000) (50,000) (50,000) (50,000) (50,000) (50,000) (50,000) 407,838 407,838 407,838 407,838 407,838 407,838 407,838 7,341,084 7,748,922 8,156,760 8,564,598 8,972,436 9,380,274 9,788,112 10,803,895 11,261,733 11,719,571 12,177,409 12,635,247 13,093,085 13,550,923 - - - - - - - 2,896,349 3,304,187 3,712,025 4,119,863 4,527,701 4,935,539 5,343,377 407,838 407,838 407,838 407,838 407,838 407,838 407,838 - - - - - - - - - - - - - - 3,304,187$ 3,712,025$ 4,119,863$ 4,527,701$ 4,935,539$ 5,343,377$ 5,751,215$ Page A-27 of 33
Kalispell Core Area Plan Financial Feasibility AnalysisTable 15:West Side TIF District Projections: Scenario 2 - ConservativePlan Yr.1234567TIF YEAR23456789Base Year Value2013 2014 2015 2016 2017 2018 2019 2020Growth Rate0% 0% 0% 0% 0% 0% 0%Taxable Property Value 11,551,896 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 Total12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 Increase666,703 666,703 666,703 666,703 666,703 666,703 666,703 666,703 Increment457,838 457,838 457,838 457,838 457,838 457,838 457,838 457,838 Expiring Developer Payment(50,000) (50,000) (50,000) (50,000) (50,000) (50,000) (50,000) (50,000) Remaining TIF Revenue407,838 407,838 407,838 407,838 407,838 407,838 407,838 407,838 Cumulative Value407,838 815,676 1,223,514 1,631,352 2,039,190 2,447,028 2,854,866 3,262,704 Current TIF Value 2,562,811 Cumulative Value (including current TIF) 2,970,649 3,378,487 3,786,325 4,194,163 4,602,001 5,009,839 5,417,677 5,825,515 Core Area Plan Financial Feasibility Analysis CumulativeTIF Fund (Balance Forward) 2,562,811$ 2,562,811$ 2,970,649$ 702,033$ (338,089)$ 58,189$ 442,968$ (434,695)$ (1,061,063)$ Incremental TIF Revenues (Baseline) 9,788,112 407,838$ 407,838$ 407,838$ 407,838$ 407,838$ 407,838$ 407,838$ 407,838$ Incremental Taxes: New Dev/Redevelopment 1,287,098 -$ -$ 852$ 18,440$ 18,440$ 18,440$ 39,796$ 57,383$ Rail Served Industrial Park Costs (2,676,454) -$ (2,676,454) -$ -$ -$ -$ -$ -$ Core Area Linear Park Costs (3,923,254) -$ -$ (1,448,812)$ (30,000)$ (41,500)$ (1,303,941)$ (1,074,001)$ (25,000)$ TIF Funds Remaining7,038,313 2,970,649$ 702,033$ (338,089)$ 58,189$ 442,968$ (434,695)$ (1,061,063)$ (620,841)$ Assumptions:2013 Flathead County Millage Rate = 0.68672Source: Kalispell Core Area Plan; Willdan, 2013.Page A-28 of 33
Kalispell Core Area Plan Financial Feasibility AnalysisTable 15:West Side TIF District Projections: Scenario 2 - ConservativePlan Yr.TIF YEARBase Year ValueGrowth RateTaxable Property Value 11,551,896 TotalIncreaseIncrementExpiring Developer PaymentRemaining TIF RevenueCumulative ValueCurrent TIF Value 2,562,811 Cumulative Value (including current TIF)Core Area Plan Financial Feasibility Analysis CumulativeTIF Fund (Balance Forward) 2,562,811$ Incremental TIF Revenues (Baseline) 9,788,112 Incremental Taxes: New Dev/Redevelopment 1,287,098 Rail Served Industrial Park Costs (2,676,454) Core Area Linear Park Costs (3,923,254) TIF Funds Remaining7,038,313 Assumptions:2013 Flathead County Millage Rate = 0.68672Source: Kalispell Core Area Plan; Willdan, 2013.8 9 10 11 12 13 14 15 16 1710 11 12 13 14 15 16 17 18 192021 2022 2023 2024 2025 2026 2027 2028 2029 20300% 0% 0% 0% 0% 0% 0% 0% 0% 0%12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 666,703 666,703 666,703 666,703 666,703 666,703 666,703 666,703 666,703 666,703 457,838 457,838 457,838 457,838 457,838 457,838 457,838 457,838 457,838 457,838 (50,000) (50,000) (50,000) (50,000) (50,000) (50,000) (50,000) (50,000) (50,000) (50,000) 407,838 407,838 407,838 407,838 407,838 407,838 407,838 407,838 407,838 407,838 3,670,542 4,078,380 4,486,218 4,894,056 5,301,894 5,709,732 6,117,570 6,525,408 6,933,246 7,341,084 6,233,353 6,641,191 7,049,029 7,456,867 7,864,705 8,272,543 8,680,381 9,088,219 9,496,057 9,903,895 (620,841)$ (145,062)$ 331,542$ 808,146$ 1,287,390$ 1,766,633$ 2,245,877$ 2,725,121$ 3,204,364$ 3,683,608$ 407,838$ 407,838$ 407,838$ 407,838$ 407,838$ 407,838$ 407,838$ 407,838$ 407,838$ 407,838$ 67,941$ 68,766$ 68,766$ 71,406$ 71,406$ 71,406$ 71,406$ 71,406$ 71,406$ 71,406$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ (145,062)$ 331,542$ 808,146$ 1,287,390$ 1,766,633$ 2,245,877$ 2,725,121$ 3,204,364$ 3,683,608$ 4,162,851$ Page A-29 of 33
Kalispell Core Area Plan Financial Feasibility AnalysisTable 15:West Side TIF District Projections: Scenario 2 - ConservativePlan Yr.TIF YEARBase Year ValueGrowth RateTaxable Property Value 11,551,896 TotalIncreaseIncrementExpiring Developer PaymentRemaining TIF RevenueCumulative ValueCurrent TIF Value 2,562,811 Cumulative Value (including current TIF)Core Area Plan Financial Feasibility Analysis CumulativeTIF Fund (Balance Forward) 2,562,811$ Incremental TIF Revenues (Baseline) 9,788,112 Incremental Taxes: New Dev/Redevelopment 1,287,098 Rail Served Industrial Park Costs (2,676,454) Core Area Linear Park Costs (3,923,254) TIF Funds Remaining7,038,313 Assumptions:2013 Flathead County Millage Rate = 0.68672Source: Kalispell Core Area Plan; Willdan, 2013.18 19 20 21 22 2320 21 22 23 24 252031 2032 2033 2034 2035 20360% 0% 0% 0% 0% 0%12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 666,703 666,703 666,703 666,703 666,703 666,703 457,838 457,838 457,838 457,838 457,838 457,838 (50,000) (50,000) (50,000) (50,000) (50,000) (50,000) 407,838 407,838 407,838 407,838 407,838 407,838 7,748,922 8,156,760 8,564,598 8,972,436 9,380,274 9,788,112 10,311,733 10,719,571 11,127,409 11,535,247 11,943,085 12,350,923 4,162,851$ 4,642,095$ 5,121,339$ 5,600,582$ 6,079,826$ 6,559,070$ 407,838$ 407,838$ 407,838$ 407,838$ 407,838$ 407,838$ 71,406$ 71,406$ 71,406$ 71,406$ 71,406$ 71,406$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 4,642,095$ 5,121,339$ 5,600,582$ 6,079,826$ 6,559,070$ 7,038,313$ Page A-30 of 33
Kalispell Core Area Plan Financial Feasibility AnalysisTable 16:West Side TIF District Projections: Scenario 3 - OptimisticPlan Yr.12345678TIF YEAR23456789Base Year Value2013 2014 2015 2016 2017 2018 2019 2020Growth Rate0% 0% 0% 0% 0% 0% 0%Taxable Property Value 11,551,896 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 Total12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 Increase666,703 666,703 666,703 666,703 666,703 666,703 666,703 666,703 Increment457,838 457,838 457,838 457,838 457,838 457,838 457,838 457,838 Expiring Developer Payment(50,000) (50,000) (50,000) (50,000) (50,000) (50,000) (50,000) (50,000) Remaining TIF Revenue407,838 407,838 407,838 407,838 407,838 407,838 407,838 407,838 Cumulative Value407,838 815,676 1,223,514 1,631,352 2,039,190 2,447,028 2,854,866 3,262,704 Current TIF Value 2,562,811 Cumulative Value (including current TIF) 2,970,649 3,378,487 3,786,325 4,194,163 4,602,001 5,009,839 5,417,677 5,825,515 Core Area Plan CostsRail Served Industrial Park(2,676,454) (2,676,454) Core Area Linear Park(3,923,254) (1,448,812) (30,000) (41,500) (1,303,941) (1,074,001) (25,000) Subtotal (6,599,708) - (2,676,454) (1,448,812) (30,000) (41,500) (1,303,941) (1,074,001) (25,000) Core Area Plan Financial Feasibility Analysis CumulativeTIF Fund (Balance Forward) 2,562,811$ 2,562,811$ 2,970,649$ 702,033$ (338,089)$ 58,189$ 450,006$ (420,618)$ (1,039,947)$ Incremental TIF Revenues (Baseline) 9,788,112$ 407,838$ 407,838$ 407,838$ 407,838$ 407,838$ 407,838$ 407,838$ 407,838$ Incremental Taxes: New Dev/Redevelopment 2,158,919$ -$ -$ 852$ 18,440$ 25,479$ 25,479$ 46,834$ 46,834$ Rail Served Industrial Park Costs (2,676,454)$ -$ (2,676,454) -$ -$ -$ -$ -$ -$ Core Area Linear Park Costs (3,923,254)$ -$ -$ (1,448,812)$ (30,000)$ (41,500)$ (1,303,941)$ (1,074,001)$ (25,000)$ TIF Funds Remaining7,910,134 2,970,649$ 702,033$ (338,089)$ 58,189$ 450,006$ (420,618)$ (1,039,947)$ (610,275)$ Assumptions:2013 Flathead County Millage Rate = 0.68672Source: Kalispell Core Area Plan; Willdan, 2013.Page A-31 of 33
Kalispell Core Area Plan Financial Feasibility AnalysisTable 16:West Side TIF District Projections: Scenario 3 - OptimisticPlan Yr.TIF YEARBase Year ValueGrowth RateTaxable Property Value 11,551,896 TotalIncreaseIncrementExpiring Developer PaymentRemaining TIF RevenueCumulative ValueCurrent TIF Value 2,562,811 Cumulative Value (including current TIF)Core Area Plan CostsRail Served Industrial Park(2,676,454) Core Area Linear Park(3,923,254) Subtotal (6,599,708) Core Area Plan Financial Feasibility Analysis CumulativeTIF Fund (Balance Forward) 2,562,811$ Incremental TIF Revenues (Baseline) 9,788,112$ Incremental Taxes: New Dev/Redevelopment 2,158,919$ Rail Served Industrial Park Costs (2,676,454)$ Core Area Linear Park Costs (3,923,254)$ TIF Funds Remaining7,910,134 Assumptions:2013 Flathead County Millage Rate = 0.68672Source: Kalispell Core Area Plan; Willdan, 2013.91011121314 151610 11 12 13 14 15 16 172021 2022 2023 2024 2025 2026 2027 20280% 0% 0% 0% 0% 0% 0% 0%12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 666,703 666,703 666,703 666,703 666,703 666,703 666,703 666,703 457,838 457,838 457,838 457,838 457,838 457,838 457,838 457,838 (50,000) (50,000) (50,000) (50,000) (50,000) (50,000) (50,000) (50,000) 407,838 407,838 407,838 407,838 407,838 407,838 407,838 407,838 3,670,542 4,078,380 4,486,218 4,894,056 5,301,894 5,709,732 6,117,570 6,525,408 6,233,353 6,641,191 7,049,029 7,456,867 7,864,705 8,272,543 8,680,381 9,088,219 - - - - - - - - (610,275)$ (127,458)$ 373,774$ 875,005$ 1,416,169$ 1,957,333$ 2,498,497$ 3,039,660$ 407,838$ 407,838$ 407,838$ 407,838$ 407,838$ 407,838$ 407,838$ 407,838$ 74,979$ 93,393$ 93,393$ 133,326$ 133,326$ 133,326$ 133,326$ 133,326$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ (127,458)$ 373,774$ 875,005$ 1,416,169$ 1,957,333$ 2,498,497$ 3,039,660$ 3,580,824$ Page A-32 of 33
Kalispell Core Area Plan Financial Feasibility AnalysisTable 16:West Side TIF District Projections: Scenario 3 - OptimisticPlan Yr.TIF YEARBase Year ValueGrowth RateTaxable Property Value 11,551,896 TotalIncreaseIncrementExpiring Developer PaymentRemaining TIF RevenueCumulative ValueCurrent TIF Value 2,562,811 Cumulative Value (including current TIF)Core Area Plan CostsRail Served Industrial Park(2,676,454) Core Area Linear Park(3,923,254) Subtotal (6,599,708) Core Area Plan Financial Feasibility Analysis CumulativeTIF Fund (Balance Forward) 2,562,811$ Incremental TIF Revenues (Baseline) 9,788,112$ Incremental Taxes: New Dev/Redevelopment 2,158,919$ Rail Served Industrial Park Costs (2,676,454)$ Core Area Linear Park Costs (3,923,254)$ TIF Funds Remaining7,910,134 Assumptions:2013 Flathead County Millage Rate = 0.68672Source: Kalispell Core Area Plan; Willdan, 2013.17 18 19 20 21 22 23 2418 19 20 21 22 23 24 252029 2030 2031 2032 2033 2034 2035 20360% 0% 0% 0% 0% 0% 0% 0%12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 12,218,599 666,703 666,703 666,703 666,703 666,703 666,703 666,703 666,703 457,838 457,838 457,838 457,838 457,838 457,838 457,838 457,838 (50,000) (50,000) (50,000) (50,000) (50,000) (50,000) (50,000) (50,000) 407,838 407,838 407,838 407,838 407,838 407,838 407,838 407,838 6,933,246 7,341,084 7,748,922 8,156,760 8,564,598 8,972,436 9,380,274 9,788,112 9,496,057 9,903,895 10,311,733 10,719,571 11,127,409 11,535,247 11,943,085 12,350,923 - - - - - - - - 3,580,824$ 4,121,988$ 4,663,152$ 5,204,315$ 5,745,479$ 6,286,643$ 6,827,807$ 7,368,970$ 407,838$ 407,838$ 407,838$ 407,838$ 407,838$ 407,838$ 407,838$ 407,838$ 133,326$ 133,326$ 133,326$ 133,326$ 133,326$ 133,326$ 133,326$ 133,326$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 4,121,988$ 4,663,152$ 5,204,315$ 5,745,479$ 6,286,643$ 6,827,807$ 7,368,970$ 7,910,134$ Page A-33 of 33
Kalispell Core Area Market & Feasibility Analysis 䄀
The Core Area is centrally located to substantial open space, parks,
designated wild life areas and recreational areas. Woodland Park is a
valuable community amenity, providing the community with active and
passive recreation offerings.
If the rail tracks were to be removed, the Core Area is poised to be
Kalispell’s central connective spine, providing safe pedestrian and bike
trail access to regional trailheads to the North, South, East and West.
To evaluate a range of potential programming uses for the proposed
Kalispell Linear Park, the Willdan project team conducted case study
research to find examples of low-capital intensity, revenue producing
public amenities that could be developed within strategic “bump out”
nodes within the park plan area.
Willdan conducted research to identify relevant examples to develop a
profile of the capital investment costs, operating costs and revenues,
annual attendance requirements for such a public amenity. Willdan
researched a range of conceptual uses to develop case study examples
of facilities which might be determined appropriate as redevelopment
concepts including:
Nature Education Centers
Events Venue/ Outdoor Pavilion Facilities
Greenbelt Trail Services and Amenities
Based on Willdan’s review of the potential land uses and the City of
Kalispell’s objectives to create a low-capital and low operating cost
approach to furthering the revitalization objectives of the Core Area
Plan, the following case study profiles were researched to provide high-
level “Lessons Learned” for the City’s consideration of future
improvements to integrate the Linear Park land to adjacent
commercial/mixed uses:
Portland Trails, Maine
Potomac Overlook Regional Park Nature Center, Arlington,
Virginia
Carolina Thread Trail & Cawtaba Lands Conservancy, North
and South Carolina
Willdan evaluated several greenbelt park/trail systems in the United
States to evaluate the typical services, amenities, and operating
structures. The Portland, Maine Trail maintains a 50-mile network of
trails in Greater Portland. Portland Trails offers "Lunch & Learns" to
businesses and organizations in greater Portland in which staff travel
to area businesses or they lead a Guided Trail Walk to educate
employees about Portland Trails, the trail network, current projects.
Portland Trails is also involved in school ground greening projects for
students. Portland Trails collaborates with the Portland Public Health
Department on a worksite fitness program for employees of area
businesses.
Kalispell Core Area Market & Feasibility Analysis
Last year over 1,000 people from 15 companies participated in the
program. The purpose of the program is to encourage the use of the
trails and awareness of the urban open spaces available for recreation
and alternative transportation. The campaign markets Portland’s
opportunities for exercise in a scenic environment. Portland Trails also
offers a range of events open to the public including guided trail walks
with historical background, information on flora and fauna, and the
trail-building process among other topics.
The Potomac Overlook Regional Park (PORP) Nature Center, managed
by the Northern Virginia Regional Park Authority, was established to
provide residents and visitors with direct access to local historic and
natural resources. The PORP site features unique interpretive exhibits
housed within the nature center and woodland trails that lead through
natural areas. Potomac Overlook Regional Park offers three miles of
wooded trails and staff-led experiential learning programming just five
miles from the center of Washington, D.C. The buildings and grounds
are free and open to the public year round.
The PORP Nature Center was opened in 1974. The initial capital
investment costs were not available as the Nature Center facility is a
1,500 square foot preexisting reconverted historic bungalow house.
Capital costs for maintenance and repair construction of the current
park shelter/comfort station, auditorium, outdoor amphitheater and
pavilion, and solar energy conversions is estimated at $100,000.
Annual operating costs are approximately $265,000 (primarily for staff
costs), of which approximately $20,000 is committed to annual capital
costs for path maintenance, way finding, marketing, and signage.
With annual attendance in the range of 25,000 visitors generate
approximately $40,000 in operating revenues, primarily from birthday
parties, weddings, canoe trips, and auditorium/shelter rentals.
Elementary school groups also visit the Center as part of curriculum
field trips for a modest fee.
The park is anchored by its nature education center, a retrofitted mid-
20th century home from which PORP staff operate a range of
community and environmental stewardship programs.
The Nature Center includes a wide range of interconnected
sustainability education programs/messaging boards, including:
Energerium: The main floor exhibit is devoted to exploring
the interconnectivity of energy and living systems.
Auditorium: The bottom floor auditorium holds up to 50
people (open for birthday parties and other private functions)
and features plant and animal exhibits.
Environmental Stewardship and Cultural Programs:
Several environmental organizations, including Arlingtonians
for a Clean Environment and the Arlington Regional Master
Naturalists, are regular park stewards. In addition, the Nature
Center regularly hosts school groups, scout groups, and local
companies in educational programs including:
Volunteer Work Days (monthly, first Saturday) with indoor
and outdoor projects around the park
Kalispell Core Area Market & Feasibility Analysis
Annual Earth Day Celebration (April 17) where volunteers
plant trees and milkweed for monarch butterflies
Open House & Heritage Festival (May 2), including music, food,
exhibits, and games
Free Summer Concerts (starting May 22) offering Saturday
evening performances.
Another example of a potential public investment that would serve to
leverage the City of Kalispell’s natural resources is the use of trail head
and park branding/identification signage along the Carolina Thread
Trail in North and South Carolina.
Carolina Thread Trail is a network of regional trails that covers 15
counties in North and South Carolina. The goal is to link regional
attractions, provide a place to experience a wide range of recreational
activities such as walking, bicycling, and picnicking. Since the project
was announced in 2007, local businesses have donated $50,000 in
signage and services. Because the project uses many existing trails,
some of which are already branded with their own community's
identity, the challenge became identifying the Thread Trail in
cooperation with the existing identity - not instead of it.
Kalispell Core Area Market & Feasibility Analysis
Working in conjunction with the Carolina Thread Trail, the Catawba
Lands Conservancy, and a local designer the project team designed and
installed multiple sign types to be used along the trails to further the
trail community brand. The City of Kalispell should consider the Core
Area Revitalization Plan process as an opportunity to adopted a refined
community brand that could be further extended throughout the
Kalispell Linear Park trail and the downtown Main Street, purposely
connecting to a range of the proposed redevelopment options and
programming opportunities by providing way finding, “wellness”
information, recycling and sustainability messaging, or other
community services (potentially at the Meridian Road/Appleway Trail
comfort station).
Based on a survey of a community trails in the United States reported
by Rails to Trails (www.railstotrails.org), the trails can serve as a
connector to a wide variety of income generating services and
amenities, including:
Restaurants Water
Grocery Stores Restrooms
Camping Sites Phone
Bike Shop Repair/Bike Rental Internet
Vending/Retail Souvenirs/Gifts
Visitors Bureau Medical Services
Shuttle Parking
These uses provide a range of capital and operating intensity
alternatives that could be employed at the proposed Meridian
Road/Appleway Senior Recreation Comfort Station. The higher the
programming/staffing intensity, the higher the need for quality
branded wayfinding signage throughout the trail system to drive traffic
(and earned revenue) to the center.
Draft Implementation Plan Executive SummaryFY20 4FY20 9FY2014 -FY2019December 2, 2014
TABLE OF CONTENTS – EXECUTIVE SUMMARYI. About the Plan | 3Acknowledgements| 5Fort Lauderdale’s Economic Resurgence| 6Economic Development Plan Framework | 7Vision Plan Guiding Principles| 9Vision Plan Guiding Principles| 9II. City of Fort Lauderdale Demographic Profile & Key Economic Trends | 10III. Economic Benchmarking Dashboard | 20Economic Performance | 23Workforce | 25Innovation | 27Livability | 29Healthy Business Environment | 33IV. Proposed Economic Development Strategic Action Plan Initiatives | 36V. Retail Development Strategy and Targeted Sub-Area Recommendations | 45VI. Targeted Industry & Entrepreneurial Development Strategy | 57We are the City VII.Alternative Incentives Recommendations | 62VIII. Implementation Plan Recommendations | 65Organizational & Institutional Assessment | 66Economic Development Financing Plan | 70Funding Sources & Eligibility Requirements| 76IXNext Steps| 77you never want to leave.IX.Next Steps| 77Appendix A: Sub Area Demographic & Economic Profiles | 79Uptown District/Fort Lauderdale Executive Airport | 80The Galt Ocean Mile | 81North Beach Village | 82The Downtown Regional Activity Center (D-RAC) / East Las Olas | 83Sistrunk | 84SE 17th Street / South Andrews Ave | 85Appendix B: Economic Development Case Studies | 86FORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN2
I. About the PlanFORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN3
MESSAGE FROM THE MAYORAs Mayor of one of the most diverse cities in the United States and Chairman of the Board of Directors of the Fort Lauderdale Community Redevelopment Agency, I have the privilege to work, play, live and raise a family alongside the best employees and elected officials in the City. The City of Fort Lauderdale is best described as a vibrant community bursting with economic opportunity, cultural activities and neighbors that pp y,grepresent all cultures, races and ethnicities. Through the collective efforts of community stakeholders, private and public partners, and the input of our neighbors, we are able to improve the quality of life daily while ensuring a the quality of life daily while ensuring a sustainable future for our children. Mayor John P. “Jack” SeilerCity of Fort LauderdaleOctober 2014ACKNOWLEDGEMENTSCITY OF FORT LAUDERDALE LEADERSHIPCITY OF FORT LAUDERDALE LEADERSHIPMayor John P. “Jack” SeilerCommissioner Bruce G. Roberts, District 1Commissioner Dean J. Trantalis, District 2Commissioner Bobby B. DuBose, District 3Vi M /C i i R R Di t i t 4FORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN4Vice Mayor/Commissioner Romney Rogers, District 4
ACKNOWLEDGEMENTSCITY OF FORT LAUDERDALE STAFFEconomic and Community Reinvestment Division, Department of Sustainable DevelopmentStructural Innovation Division, Office of the City ManagerDepartment of Transportation & MobilitySTAKEHOLDERSBeach Business Improvement District Advisory CommitteeBh Rdl t Adi BdFort Lauderdale/Hollywood International AirportGreater Fort Lauderdale Chamber of CommerceG t F t L d d l C ti & Vi it Beach Redevelopment Advisory BoardBroward Bank of CommerceBroward CareerSource/WorkforceOneBroward County/Office of Economic & Small Business DevelopmentBroward HealthGreater Fort Lauderdale Convention & Visitors BureauMarine Industries Association of South FloridaNW Community Redevelopment Advisory BoardPort Everglades Port AuthorityPrivate property owners neighborhood Broward HealthBroward Metropolitan Planning OrganizationBroward WorkshopDowntown Development Authority (DDA)Florida Atlantic UniversityPrivate property owners, neighborhood associations, citizens, developers, land use attorneys, investors, and othersRiverwalk Trust/GO RiverwalkThe Greater Fort Lauderdale AllianceTECHNICAL STAFF/CONSULTANTSWilldan Financial and Economic Consulting ServicesWTL + a Real Estate & Economic AdvisorsRenaissance Planning GroupFORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN5
MESSAGE FROM THE CITY MANAGERFORT LAUDERDALE’S ECONOMIC RESURGENCEMANAGERAn advantageous economic climate has helpedthe City of Fort Lauderdale establish itself as aworld-class international business center and oneof the most desirable locations for new,diltibiRESURGENCEMedia outlets around the country are taking note of our commitment tobuilding community! Fort Lauderdale is receiving national attention for oureconomic resurgence and our commitment to implementing a communitywide Vision and Strategic Plan to create an active, vibrant, inclusive, andti blCitWhbkdthti ’btitiiexpanding, orrelocatingbusinesses.Known internationally as a preferred destinationfor tourism and marine-related businesses, FortLauderdale supports a diverse range of industries,including high technology, real estate, and filmsustainableCity.Wehavebeen rankedamongthenation’sbestcitiesinavariety of areas, including:All-America City, 2014 National Civic LeagueTop 10 Best Downtowns in 2014 Livability.com and television production.A growing list of nationally-recognizedcorporations have established business operationsin Fort Lauderdale with corporate or LatinAmerican headquarters,including:AT&T,America’s 10 Most Exciting Cities Movoto National Real EstateTop 10 Best Places to Move in 2014 SML National Moving Top 10 Small American Cities of the Future Foreign Direct Investment Magazine q,g,AutoNation, BankAtlantic, Citicorp, Citrix Systems,Galaxy Latin America, Hewlett-Packard, MicrosoftLatin America, Motorola Latin America, RepublicIndustries, South African Airways, SpherionCorporation, SportsLine.com, and VoicestreamWlTop 10 Best Places for Veterans to Live Best Places for Veterans Report Top 10 Great Cities for Family Vacations Vacation Critic Travel Planning Guide Top 10 Best Places to Retire Money Magazine Fit Wit Dtiti f Cdi Fli htN t k Wireless.Fort Lauderdale’s national recognition as aforward-looking economy is evidenced by thenumber of “Top 10” lists and other accoladesawarded overthelasttwelvemonths. TheCityofFavorite Winter Destination of Canadians FlightNetwork.com Most Outstanding Green Government U.S. Green Building Council South Florida Happiest Cities for Young Professionals Forbes Magazine Best Places for Business and Careers Forbes Magazine Fort Lauderdale is further leveraging this successwith the launch of the Citywide EconomicDevelopment Strategic Action Plan.Lee R. Feldman, City ManagerCity of Fort LauderdaleBest Places for Business and Careers Forbes Magazine Top 100 Best Cities to Start a Business WalletHubCertified as a Florida Green Local Government Florida Green Building Coalition Complete Streets Policy Ranked #1 in Florida and #3 Nationally Smart October 2014Complete Streets Policy Ranked #1 in Florida and #3 Nationally Smart Growth AmericaFORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN6
The Department of Sustainable Development initiated the EDSAP process toestablish a baseline of key data regarding current economic performance and toexplore best-in-class initiatives employed byother communities that could beABOUT THE PLANThCitWidEiDl tSt t iAtiPl(EDSAP)iCitppyyadopted and implemented by Fort Lauderdale to improve the City’s economicresiliency over the next five years.The EDSAP was developed to provide an action-oriented framework to improveupon these challenging aspects of the City’s economic climate today. The Planis based on more than 100 stakeholder interviews, seven public meetings,ti ltdhdtill b tiithlti lCitfTheCity-WideEconomicDevelopmentStrategicActionPlan(EDSAP)isaCityCommission Annual Action Plan priority for Fiscal Year 2014, an initiativeoutlined in the Press Play: 2018 Strategic Plan under the BusinessDevelopment cylinder of excellence, and aligns with the Fast Forward: 2035City Vision Plan under the "We Are Prosperous" statement.The EDSAP was developed in twophases requiringsubstantial communityandnationalcase studyresearch,andextensive collaboration withmultipleCityofFort Lauderdale and Broward County staff.Fort Lauderdale’s 2014 economic benchmarking assessment indicates aresilient, competitive economy based on a series of key indicators comparing theCity to nine other communities. The City is clearly competing when consideringoveralleconomichealth,workforcequality,andthescaleandrateofinnovationppqgystakeholder input. Phase I includes: 1) an Economic Profile Report ofdemographic and economic trends in the City of Fort Lauderdale and inselected sub-areas; 2) overview of primary Strengths/Opportunities andChallenges/Threats by sub-area identified by the Stakeholder Meeting processand 3) a Retail and Commercial Market Assessment. These full reports arelocated in the Technical Appendix to this Strategic Plan.ove aeco o cea ,wo o cequa y,adesca eadaeoova oachieved by local businesses:ppgThis Executive Summary provides the key components of Fort Lauderdale’s 5-Year Economic Development Strategic Action Plan including:A comprehensive mission statement and core set of values for theStrategic Plan;Economic IndicatorRanking(out of 10 Cities)Economic Performance 3rdWorkforce 3rdAspects of the City’s economic landscape that appear to lag behind competitorsinclude livability (primarily due to the relative cost of living and housingaffordability) and business environment (resulting from the relative cost of doingbusiness in the City when compared to other locations in the western andth tUitdSt t )An economic development trends snapshot for the City;An Economic Development Benchmarking Assessment to test the currenteconomic competitiveness of the City against nine comparable marketsand “economic dashboard” benchmarking metrics to measure thesuccess of the strategies and initiatives;Innovation2ndsoutheasternUnitedStates):An identification and recommendation of economic developmentincentive programs for business retention and recruitment that areapplicable to each geographic sub-area and the City as a whole;An entrepreneurial development and business incubation strategy, atargeted industry growth strategy, and a retail recruitment strategy; andEconomic IndicatorRanking(out of 10 Cities)Livability8thBusiness Environment4thThe Plan’s proposed initiatives will require approximately $7.2 million insustained investment in new personnel, capital upgrades, and operatingexpenditures over the next five years. The City of Fort Lauderdale is dedicated toimplementing the plan, as evidenced by the proposed organizational andinstitutional resources that will be allocated to design, implement and managethe Plan’s 13 proposed key economic development initiatives, and will be heldAn implementation program including sources and uses of funding todirect staff resources and facilitate plan implementation over the five-yearimplementation horizon).The following implementation plan summary is intended to guide the City ofFort Lauderdale’s economic development priorities for the next five years.accountable for its success through annual monitoring and reportingmechanisms.FORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN7
ECONOMIC DEVELOPMENT PLAN FRAMEWORKThe following Implementation Plan and monitoring framework provides a visionfor the City's economic future as well as the goals, objectives, and policies foreconomicdevelopmentintheCitythroughtheyear2019.The City of Fort Lauderdale iseconomicdevelopmentintheCitythroughtheyear2019.VisionDefines the optimal desired future state of what an entitywants to achieve over time; provides guidance and inspirationas to what an organization is focused on achieving in five,Lauderdale is delivering economicten, ormore years.GoalsThey are the ends toward which effort and action are directedor coordinated. Together, the plan goals are the individualcomponents needed to achieve the ‘vision’.economic opportunity with cutting-pObjectivesThoughtfully constructed methods or actions that will beemployed to achieve a result (goal). This is ‘how’ the visionwill be achieved.InitiativesThthifittith tillbil tdtedge, 21stcentury iInitiativesThey arethespecifictacticsthatwillbeimplementedtodeliver on or to coordinate an objective.economic development tactics fromtactics from vision to executionexecutionFORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN8
GUIDING PRINCIPLESTh C ’ d l ll b VISION STATEMENTThFtLddlEiDl tSt t iAtiThe City’s economic development vision will be achieved by:Establishing development procedures that are predictable, efficient and customer driven, encouraging legitimate involvement of all key TheFortLauderdaleEconomicDevelopmentStrategicActionPlan (EDSAP) is a City CommissionAnnual Action Plan priorityfor Fiscal Year 2014, an initiative outlined in the Press Play:2018 Strategic Plan under the Business Development cylinderofexcellence,and aligns with the FastForward: 2035 Cityencouraging legitimate involvement of all key stakeholders in the processContinuing to build on the strength of the maritime industrySt th i th Cit ’ t i i d t b d ,gyVision Plan under the "We Are Prosperous" statement. TheFort Lauderdale Economic Development Strategic ActionPlan’s Vision Statement is:FtLddl illb ldiStrengthening the City’s tourism industry beyond the City’s coastal areasRetaining strong companies and targeting emerging industries that are compatible with the region’s existing clustersFort Lauderdale will be a leading area for economic prosperity fostered by a solid industry base of first class marine-related activities and premier destinations–gaining ggCoordinating the City’s long-term business, education, and transportation plansEnabling a competitive yet flexible real estate market that balances the needs of industry with pggrecognition as a prominent South Florida location of choice for emerging technology development, entrepreneurship, high-paying job growth and sustainablemarket that balances the needs of industry with Fort Lauderdale’s sense of placeProviding a diverse range of incentives that attract businesses and entrepreneurs who create quality, high-paying jobsgrowth and sustainable development practices. qygpy gjExpanding on the of the opportunities created by Port Everglades and Fort Lauderdale Executive AirportFORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 9
II. Demographic Profile & Key Economic TrendsKey Economic TrendsFORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN10
Economic Vitality"M thi hCITY OF FORT LAUDERDALE AT A GLANCE……………………………………………………………………….Economic VitalityFort Lauderdale is the business and tourism center of Broward County.LocatedinSouthFlorida(Miami-Dade,BrowardandPalmBeach"More than ever, companies choose Greater Fort Lauderdale for our outstanding quality of life, highly educated and diverse workforce, transportation access and highly rated business and personal tax climate"Withconvenienttransportationfacilitiesincludingaworld‐classinternationalairportwithLocatedinSouthFlorida(MiamiDade,BrowardandPalmBeachCounties), Fort Lauderdale benefits from the synergistic co-location inthe 7th largest metropolitan statistical area (MSA) in the nationThe region, whose combined population is now over 5.5 million, hasroughly one-third of Florida's total population.business and personal tax climate. —Bob Swindell, President/CEO, Greater Fort Lauderdale AllianceWith convenient transportation facilities including a worldclass international airport with connections to major U.S. and foreign destinations, one of the world's busiest seaports and high‐speed global telecommunications connections, Greater Fort Lauderdale/Broward County provides a 21st century infrastructure.And minutes away, you'll find two other international airports and Approximately 60 percent of the population is in the prime workingagesThe region has been designated a mega-region of the future and adriver of U.S. economic growth in Richard Florida's book “Who's YourCity?”seaports! City?Fort Lauderdale businesses can take advantage of one of the mostsophisticated and diverse international infrastructures in the worldSouth Florida has the third largest consular corps in the United States,with approximately70 consulates and 25 foreign trade offices frompp ygthe major countries in Latin America and the Caribbean as well asEurope and AsiaWith convenient transportation facilities including a world-classinternational airport with connections to major U.S. and foreigndestinationsoneoftheworld'sbusiestseaportsandhigh-speeddestinations,oneoftheworldsbusiestseaportsandhigh-speedglobal telecommunications connections, Greater FortLauderdale/Broward County provides a 21st century infrastructureFORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 11
CITY OF FORT LAUDERDALE AT A GLANCEEconomic VitalityNet migration—or the number ofpeople moving into Fort Lauderdaleless the number of people movingout—is projected togrow steadilyhl……………………………………………………………………….Economic VitalityThe City of Fort Lauderdale is experiencing ihidiWithconvenienttransportationfacilitiesincludingaworld‐classinternationalairportwithwithapproximately120,300 net newresidentsby 2017.Unemploymentis trendingdownwardtolessthan“normal”orstabilizedNetMigration, Unemployment & Personal Incomestrong economic growth indicators across multiple frontsWith convenient transportation facilities including a worldclass international airport with connections to major U.S. and foreign destinations, one of the world's busiest seaports and high‐speed global telecommunications connections, Greater Fort Lauderdale/Broward County provides a 21st century infrastructure.And minutes away, you'll find two other international airports and tolessthannormalorstabilizedrates of5%.Personal incomegrowth rates aretrendingupwardbetween4% to 8%22.223.616 221.124.828.329.98.0%10.0%22.0Net Migration, Unemployment & Personal Income Growth Trendsseaports! gpannually through 2017, more thandouble the U.S. average.Gross Metro Productwill achieve aidlh2.712.74.716.22.0%4.0%6.0%2.012.0th Rate (%)ration ('000's)sustainedaverage annualgrowthrate of2.2%over the next 5 Years.-6.2-4.0%-2.0%0.0%-18.0-8.02007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018GrowtNet MigrThese combined trends point to the sustained economic-27.3-6.0%-28.0Net migration ('000s)Unemployment Rate (%)Source: Moody’s Economy.com 2013 Metro-Précis Report, City of Fort Lauderdale; Willdan, 2014. to the sustained economic vitality of the City of Fort LauderdaleFORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 12
CITY OF FORT LAUDERDALE AT A GLANCE………………………………………………………………….Population & IncomeFort Lauderdale is home to approximately 187,000residents in 86,000 households within the largerBrowardCountyregionof18millionresidents………………………………………………………………….Education & WorkforceDoctorate Educational AttainmentFort Lauderdale offers one of the largest and most diverse labor forces in the state of Florida, l h l lBrowardCountyregionof1.8millionresidentsThe job market, a key catalyst for housing demand,is improving, further driving Fort Lauderdale’spopulation growthPopulationgrowthwillaccelerategraduallyto18%Some K-12, No Diploma14%Bachelor's Master's/ Professional Degree10%Doctorate Degree1%along with a growing talent pool43 institutions offering Associate's Degrees or higher within 30 miles of Fort Lauderdale, eleven of which offer MBA degreesPopulationgrowthwillaccelerategraduallyto1.8%by 2017, and foreclosures are being worked off ata faster pace than in MiamiPopulation Trends and Housing StartsHigh School Graduate, GED, or Alternative28%Some College, No DegreeAssociate's Degree7%Degree20%Public high schools that have been ranked among the best in the countryMore than 38% of Fort Lauderdale residents have earned a Bachelor’s, Master’s, Professional or Doctorate-level Degree4 0005,0006,0001 8501,9001,9502,000rmits/Year)s)Population Trends and Housing StartsNo Degree20%7%Fort Lauderdale offers one of the largest and most diverse2,0003,0004,0001 6501,7001,7501,8001,850ng Starts (# of PerPopulation ('000slaborforces in the state ofFlorida, along with a growingtalent pool43 institutions offering Associate's Degrees or higher within30 miles of Fort Lauderdale, eleven of which offer MBAdegrees01,0001,5501,6001,650200720082009201020112012201320142015201620172018HousiPopulation (ths) Single-family permits Multifamily permits gPublic high schools that have been ranked among the bestin the countryMore than 38% of Fort Lauderdale residents have earned aBachelor’s, Master’s, Professional or Doctorate-levelFORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 13DegreeSource: Moody’s Economy.com 2013 Metro-Précis Report, ESRI Business Analyst, City of Fort Lauderdale; Willdan, 2014
CITY OF FORT LAUDERDALE AT A GLANCE………………………………………………………………….Population & Income………………………………………………………………….Healthy Business Environment40%840Employment TrendsAlthough Fort Lauderdale supports a diverse populationacross all income brackets, approximately 20.4% ofresidents are living near or below the poverty rate.-2.0%0.0%2.0%4.0%720740760780800820840nt Changeployment ('000s)Poverty level is an indicator of the income equality of acommunity as determined by the U.S. Census Bureau.In 2013, the national average annual threshold income fora single person younger than 65 years old wasitl$12000ffilffithtRETAIL RECRUITMENT STRATEGY-8.0%-6.0%-4.0%640660680700720200720082009201020112012201320142015201620172018PerceTotal Emapproximately$12,000;forafamilyoffourwithtwochildren under the age of 18, it was $23,600.The ratio of low income residents to high income residentsin Fort Lauderdale (0.5) is ranked as the third highest in theUnited State by the U.S. Census Bureau.RETAIL RECRUITMENT STRATEGYTotal Employment ('000s)% change Total employment has continued to increase since theeconomic recession of 2008 and is projected to increase atan average annual rate of 1.7% through 2018 by Moody’s$150,000 -$199 999$200,000+6%Households by IncomeEconomy.ComAccess to both domestic and international markets with threeairports in close proximity, including significant access to LatinAmerica and the CaribbeanAttthldithit lit ti lbi<$15,00017%$15,000 -$24,99914%$75,000 -$99,9999%$100,000 -$149,9999%$199,9995%Agatewaytotheworldwithvitalinternationalbusinessexpertise and the third largest concentration of consular corpsin the United StatesAs home to more than 150 corporate headquarters, GreaterFort Lauderdale is a major business center14%$25,000 -$34,99912%$35,000 -$49,99914%$50,000 -$74,99916%9%FORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 14Fort Lauderdale offers a highly favorable tax climate forbusiness and no state income tax14%
HiMktCulture Arts & RecreationCITY OF FORT LAUDERDALE AT A GLANCE………………………………………………………………….Housing Market………………………………………………………………….Culture, Arts & RecreationFort Lauderdale represents the definition of outstanding quality of life,highlighted by a semi-tropical climate, natural beauty and array ofcultural, entertainment and educational amenities. With over 3,000 hoursofsunshineeachyear,FortLauderdaleBeachisaninternationalHousing Characteristicsofsunshineeachyear,FortLauderdaleBeachisaninternationaldestination for recreation, relaxation and enjoyment.Renter-Occupied UnitsOwner-Occupied Units75,000 Housing Units in 2012Fort Lauderdale median home value = $157,000 vs. $136,000 in the State of FloridaFort Lauderdale also offers an outstanding quality of life, highlighted by a semi‐tropical climate, rich natural beauty and array of cultural, entertainment and educational amenities. Blessed with 7Miles of Public Beachp48%52%5,000 new downtown housing units under construction/ plannedin 201410% of Fort Lauderdale homes are valued > $500,000over 3,000 hours of sunshine each year and pleasant year‐round ocean breezes, world‐famous Fort7Miles of Public Beach165Miles of Navigable Waterways85Public Parksin 2014$500,000Fort Lauderdale Housing Values(% of Total Stock)25%<$100KThe Riverwalk serves as the cornerstoneof the City's arts, science, culturalfff972.5Acres of Public Parks200Boat Slips and Moorings47%$100K-$250K18%$250K-$500K5%$500K-$750K2%$750K-$1 Mand historic district whichfeatures the Broward Centerfor the PerformingArts, Museum of Discovery and Science, Museum of Art and Old FortLauderdale Village and Museum.Las Olas Boulevard is Fort Lauderdale's fashion, fine dining andentertainment anchor. In addition, the City's downtown area is home toBrowardCommunityCollegeFloridaAtlanticUniversityFlorida2%$$3%$1 Million +Fort Lauderdale offers diverse housing choices to serve a range of FORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 15BrowardCommunityCollege,FloridaAtlanticUniversity,FloridaInternational University, the Broward County Main Library, federal, countyand school district offices.gghousehold incomes
MACRO-LEVEL ECONOMIC TRENDS1“More than $3 Billion of public diti t tiTiillikfthiFtLddlVi it tiitdtith ktand private investment is underway in downtown Fort Lauderdale in 2014”– Chris Wren, Executive Director, Fort Lauderdale Downtown Tourism willremainakey source ofgrowthinFortLauderdale.Visitationisexpectedtorisethankstothe Fort Lauderdale-Hollywood International Airport’s $2.3 billion investment to expand its runwayand terminal.Tourism from Latin America and the Caribbean is expected to increase as Jet Blue plans to add moredaily flights to these routes. Visits from Europe will also rise as Norwegian Air Shuttle adds flights toLondoninJuly2014Development Authority (DDA)LondoninJuly2014.Housing prices have increased for six straight quarters moving toward recovering some of the homeequity that was lost in the 2008 economic downtown.Substantial construction activity and spillover growth from Miami will enable Fort Lauderdale’seconomic performance to outpace the national economic growth rate in the near term. Proximity toMiami will be a long-term asset, as will as the metro’s own healthy tourism traffic, above-averagepopulation gains relative to the nation’s, and steadily increasing international trade.Finally, Fort Lauderdale’s finance and insurance industry will continue to rebound fuelling growth inhigh-value professional services job creation.Fort Lauderdale’s Economic Strengths: Approximately 5 000 Downtown housing Fort Lauderdale s Economic Strengths: Strong ties to international trade via Latin America boosts business revenuesSpillover of growth from Miami tourism and trade risingApproximately 5,000 Downtown housing units planned/under construction in 2014All Aboard Florida’s new station constructionFort Lauderdale’s Economic Challenges:Emerging high tech/medical tech ecosystem hub taking rootInfrastructure improvements increase Fort Lauderdale’s trade flows and airport traffic, exceeding projectionsWeak for-sale housing market will continue to challenge development amdredevelopment investmentForeclosures will continue to weigh on housing prices and construction exceeding projectionsWeakening Dollar will boost further tourism Highly attractive tourism destination serves as key economic engine boosting private itt d ll t housing prices and construction Business confidence still slow to achieve full recovery Rising insurance premiums will boost living costs and challenge Fort Lauderdale’s ll t f d i b iFORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN16investment and local tax revenuesoverall cost of doing business1 Moody’s Economy.com 2013 Metro-Précis Report, City of Fort Lauderdale; Willdan, 2014.
ECONOMIC TRENDS – TARGET INDUSTRIES“The success of any city in id l tib dFort Lauderdale’s economic recovery has shifted into high gear.Over the last 12 months,only five of the 51 metro areas with more than 1 million residents added jobs at a fasterrate.In 2013, growth was strongest in construction; builders and contractors make up just5%oftheworkforcebutaccountedfor31%ofnetnewhireseconomic development is based on its ability to strategically utilize its resources and align them with the wishes of its business leaders and citizens. As a small business 5%oftheworkforcebutaccountedfor31%ofnetnewhires.The City of Fort Lauderdale, Broward County, the Broward Metropolitan PlanningOrganization, and the Port Everglades Port Authority are investing nearly $1 Billion ininfrastructure improvements for the 21stcentury, including:The Wave Streetcarand citizens. As a small business owner who works closely with the local real estate development community a focused, forward-thinking plan is something that is impressi e to o r clients”TourismVisitor and tourism activity Greater Fort Lauderdale nearly doubled during 1996 to 2012 — from 6.15 million visitors in 1996 to more than 12 million visitors in 201278% f i i t f d ti k t d 22% f i t ti l Florida All Aboard Florida Railroad StationsPort Everglades Panamax ExpansionBased on economic trends, these major public infrastructure investments will spur catalyticeconomicgrowthinthefollowingtargetindustriesimpressive to our clients”. —Jason Crush, Crush Law P.A.Chair, Fort Lauderdale Economic Development Advisory Board78% of passengers originate from domestic markets and 22% from international marketseconomicgrowthinthefollowingtargetindustries.Visitor IndustryVisitor spending in the Fort Lauderdale/Broward County market totaled $9.8 billion in2012, a significant increase over the previous year’s $9 billionVisitors offriends and relatives account fora significant amount ofspending (estimatedat approximately $5.7 billion in additional annual visitor expendituresThe domestic/ international visitor mix isa significant drive of retail spending;international visitors tend to spend more on retail goods than domestic visitorsAildtiittf$350ftthttlti t dAssuming average sales productivityrates of$350persquarefoot,thetotalestimatedannual visitor spending of $15.5 billion translates into substantial spending power onhotels/lodging, retail/dining/entertainment, taxis, car rentals and other local economicbenefitsFORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN17
“llii ”ECONOMIC TRENDS – TARGET INDUSTRIESMarine IndustryOne of the area's largest industries andemployment sectors: Creates more than134,000 jobsMotorola Mobility (slated to be acquiredby Google) Research in Motion and xGTechnologyForeign Trade & Investment“All-America City 2014”–National Civic League Estimated economic impact: $10.7 billionRepresenting $3.7 billion in wages andearnings annuallyFort Lauderdale’sInternational Boat ShowNearly 92,000 jobs — or 4.7 percent ofall private jobs — in South Florida areprovided by foreign-owned companies,according to the Brookings InstituteBditt tifiiiwis the world’s largest in-water boat show—generating an economic impact of $650millionTechnologyBrowardisattractingforeign companiesina diverse array of high value sectorsincluding medical devices, aviation andlogisticsThe Brookings Institute reports thatSouth Florida is home to more than 6,000high technology firmsA recent report by TechAmerica rankedFlorida fourth in the nation with 292,300technologyjobsmergers and acquisitions account for38,000 jobs in the region provided byforeign-owned companiesMore than 40% of local businesses areengaged in,orsupportinginternationaltechnologyjobsMore than 75,000 of high-tech workerswere employed in the Miami-FortLauderdale metro areaAlargeclusterofcloud technology/mobilegg,pp gcommerceggycommunications companies are alllocated in proximity including Citrix,Eyecast, Foxconn, General Dynamics,FORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN18
“All-America City, 2014”ECONOMIC TRENDS – TARGET INDUSTRIESFort Lauderdale – Hollywood international AirportEmploys 12,500 on-airport employeesSupports more than 23.6 million annualpassengers—National Civic League pppgAverages 621 commercial flights on 30 airlines and 125 private flights dailyGenerates total annual employment equal to 135,000 jobs and $3.5 billion in wages(including direct, indirect, induced multiplier effect)Generates a total annual economic impact of $10.6 billion (Florida Department ofTttiIMPLANEiM d li )TransportationIMPLANEconomicModeling)Port EvergladesThe Port accounts for nearly $26 billion in business activitySupports11700jobslocallyandmorethan200000statewideSupports11,700jobslocallyandmorethan200,000statewideResponsible for generating $729 million in state and local taxesPort Everglades is the world's third busiest cruise port after PortMiami and Port Canaveral,with more than 3.7 million annual cruise passengers in 2013It is Florida’s leading cargo container port and ranks No. 12 in the United StatesSouth Florida’s main seaport for receiving petroleum products, including gasoline, jet fueland ethanolThese positive economic trends are a clear indicator of FtLddl’ l dl tiiFort Lauderdale’s role and location as an economic engine of the region – evidence of where the public sector has successfully made strategic infrastructure investments to attract private investment and a high lit l b fFORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN19quality labor force.
III. Economic Benchmarking DashboardFORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN20
COMPETITIVE CONTEXT“Top 10 Best Places to Move in 2014”–SML National MovingCOMPETITIVE CONTEXTThe Economic Development Strategic Action Plan Team undertook an exhaustive review of the most compelling economic indicators for those cities considered either site selection competitors or offering exemplary, innovative examples of sustainable economic development and public ECONOMIC BENCHMARKING examples of sustainable economic development and public policies. Those cities are:Austin, TXDaytona Beach, FLMemphis TNOrlando, FLSavannah, GATampa FLDASHBOARDPost Great Recession, communities nationwide are focused on how toevolve and compete – to achieve sustainable economic prosperity.Throughoutthelong-term,large-scaleVisionPlanningprocess,CityEach of these cities offersgeographic,demographic andMemphis, TNMiami, FLNashville, TNTampa, FLVirginia Beach, VAoug oueoge,agesca eVsoagp ocess,Cyofficials engaged the full spectrum of community perspectives toproduce a cutting edge implementation tool designed to yield tangibleresults. One of the cornerstones of the plan is the goal, “We areProsperous.”The City of Fort Lauderdale understands that residents, businesses,ggp,gpeconomic characteristics similar to Fort Lauderdale from apopulation, trade, and tourism market perspective.The results of this economiccompetitive assessmentindicatedevelopers, investor and visitors have a choice about where to locate,invest, spend a dollar, send a child to school, or visit.To better understand how to achieve the City’s Fast Forward Vision ofbeing a ‘Community of Choice’, the EDSAP process evaluated the Cityof Fort Lauderdale’s current economic competitiveness within theflldldpthat Fort Lauderdale is ranked inthetop fourin four out of fiveindices when compared to theperformanceofninecohortcitiescontext ofmultiple ‘Economic Prosperity’ indicators, including:performanceofninecohortcities.To continually improve ourcompetitive ranking, the EconomicDevelopmentStrategicActionPlanUnemployment RatesInfrastructure InvestmentTax RatesQuality of LifeEnergy CostsLabor CostsFORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 21DevelopmentStrategicActionPlanproposes 13 key initiatives.Labor Force EducationOffice Rents
ECONOMIC BENCHMARKING RESULTSF t L d d l ’ 2014 i b h ki t i di t ili t titi b d Fort Lauderdale’s 2014 economic benchmarking assessment indicates a resilient, competitive economy based on a series of key indicators comparing the City to nine other communities:Economic Performance: 3rdWorkforce: 3rddLivability: 8thBusiness Environment: 4thA detailed explanation of each index follows these summary results. Note each index is scaled 0 to 100. Economic1st 2nd3rd4th 5th 6th 7th 8th 9th 10thInnovation: 2ndEconomic Performance Index93 72655146432924149Austin, TX Nashville, TNFort Lauderdale, FLVirginia Beach, VATampa, FL Orlando, FL Miami, FL Savannah, GADaytona Beach, FLMemphis, TNWorkforced1st 2nd3rd4th 5th 6th 7th 8th 9th 10th96 776464 64 48 47 27 24 3IndexAustin, TX Orlando, FLFort Lauderdale, FLNashville, TN Tampa, FLVirginia Beach, VAMiami, FL Savannah, GA Memphis, TNDaytona Beach, FLInnovation Index1st2nd3rd 4th 5th 6th 7th 8th 9th 10th1005251 43 38 35 20 16 14 11Austin TXFort Lauderdale, Tampa FLOrlando FLVirginia Beach, Nashville TNDaytona Beach, Miami FLMemphis TNSavannah GAAustin, TXFLTampa, FLOrlando, FLVANashville, TNFLMiami, FLMemphis, TNSavannah, GALivability Index1st 2nd3rd4th5th6th7th8th9th10th61 595752514542403727Nashville, TNVirginia Beach, VASavannah, GA Austin, TX Tampa, FL Memphis, TNDaytona Beach, FLFort Lauderdale, FLOrlando, FL Miami, FLBusiness Environment Index1st 2nd3rd4th5th6th7th8th9th10th72 716865655757434339Austin, TX Nashville, TN Savannah, GAFort Lauderdale, FLOrlando, FL Tampa, FLVirginia Beach, VADaytona Beach, FLMemphis, TN Miami, FLFORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 22
“lfECONOMIC PERFORMANCERobust economic growth measured by increasing household incomes and private sector job growth fueled by tangible connections with public, private, educational, institutional and cultural partners. “Best Places for Business and Careers”–Forbes MagazinePer capita incomeis the mean money income received in the past 12 monthscomputed for every man, woman, and child in a geographic area. It is a proxy forliving standards within a region. For additional information on how per capitaincome is measured visit http://quickfacts.census.gov.Unemployment Ratemeasures the percentage ofthe total laborforce that isunemployed and actively seeking employment. Data are preliminary estimates forNovember 2013.Gross Regional Product (GRP)is the total dollar value of all goods and servicesddifitiidItifthiidi tdtproducedoveraspecifictime period.Itisoneoftheprimaryindicators usedtogauge the health of a region’s economy, as it represents the size of the economy(expressed as a growth rate). GRP data are only available at the MetropolitanStatistical Area (MSA) level. Fort Lauderdale is part of the Miami-Fort Lauderdale-West Palm Beach, FL (MSA). For this reason, Fort Lauderdale is shown tied withMiamiinthirdplaceMiamiinthirdplace.Growth of Private Sector Jobsindicates the creation of economic opportunities forresidents of a region.FORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN23
ECONOMIC PERFORMANCE INDICATORSFtLddlk3dillifdtthhi h titifllitiFortLauderdaleranks3rdinoveralleconomicperformanceduetothehighestpercapitaincome ofallcitiesanalyzed, coupled with a relatively low unemployment rate (5.6%), a very healthy Gross Regional Product AnnualGrowth Rate of 3.1%, and a private sector growth rate of 6.4%.01st2nd3rd4th5th6th7th8th9th 10thEconomic Performance IndexIndex Range: 0 to 1095736553474430251411Austin, TX Nashville, TNFort Lauderdale, FLVirginia Beach, VATampa, FL Orlando, FL Miami, FL Savannah, GADaytona Beach, FLMemphis, TNEconomic Performance IndicatorsPer Capita Income2010-20121st2nd 3rd 4th 5th 6th 7th 8th 9th 10th$34,011$31,431 $30,880 $28,262 $26,412 $24,936 $20,874 $20,104 $18,889 $17,552Score: 100Score: 84 Score: 81 Score: 65 Score: 54 Score: 45 Score: 20 Score: 16 Score: 8 Score: 0Fort Lauderdale FLVirginia Beach, VAAustin, TX Tampa, FL Nashville, TN Orlando, FL Memphis, TN Miami, FL Savannah, GADaytona Beach, FLLauderdale, FLVAppFLSource: U.S. Census Bureau U.S. Average per Capita Income = $27,385Unemployment Rate20131st2nd3rd4th5th6th7th8th9th10th4.9%5.3%5.6%6.5%6.7%7.7%8.0%8.9%9.3% 10.8%Score: 100 Score: 93Score: 88Score: 73 Score: 69 Score: 53 Score: 47 Score: 32 Score: 25 Score: 0Austin TXVirginia Beach, Fort Nashville TNOrlando FLTampa FLDaytona Beach, Savannah GAMiami FLMemphis TNAustin, TXVALauderdale, FLNashville, TNOrlando, FLTampa, FLFLSavannah, GAMiami, FLMemphis, TNSource: U.S. Bureau of Labor Statistics U.S. Unemployment Rate: 7.35%GRP Annual Growth2009-20121st2nd3rd Tied3rd Tied 5th6th7th8th9th10th7.0%5.6%3.1%3.14% 3.08% 2.8%2.7%2.6%2.5%1.2%Score: 100 Score: 76Score: 34Score: 34 Score: 33 Score: 28 Score: 27 Score: 25 Score: 23 Score: 0Austin, TXNashville, TNFort LddlFLMiami, FLSavannah, GATampa, FLOrlando, FLVirginia Beach, VAMemphis, TNDaytona Beach, FLust ,Nas v lle, NLauderdale, FLa,Sava a , Gapa,Ola do,VAeps,NFLMeasured at the Metro Level Source: U.S. Bureau of Economic Analysis U.S. GDP (metropolitan regions) Growth Rate = 3.9%Private Sector Job Annual Growth2009-20121st2nd3rd4th5th6th7th8th9th10th15.4% 14.2% 7.8%7.5%6.4%6.2%5.2%2.8%2.6%1.3%Score: 100 Score: 91 Score: 46 Score: 44Score: 36Score: 35 Score: 28 Score: 10 Score: 9 Score: 0Austin TXNashville TNMiami FLTampa FLFort Orlando FLSavannah GADaytona Beach, Virginia Beach, Memphis TNFORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 24Austin, TXNashville, TNMiami, FLTampa, FLLauderdale, FLOrlando, FLSavannah, GAFLVAMemphis, TNMeasured at the Metro Level Source: U.S. Bureau of Labor Statistics U.S. Private Sector Jobs Annual Growth = 5.3%
WORKFORCE“iiifWORKFORCEAmple supply of talented and skilled workforce to support the target industriesof advanced materials and high tech manufacturing; aerospace and aviation;cloud technology and mobile communications; corporate headquarters; lifesciences; marine; and international trade and logistics.“Happiest Cities for Young Professionals”–Forbes MagazinegWorkforce growthis an indicator that the number of eligible workers within a community is increasing. Theavailability of skilled workers is an important consideration for existing businesses looking to expand as wellas for new businesses looking to relocate to a community. The U.S. Federal reserve notes that "Growth in thelabor force is one of two key determinants of the nation’s maximum sustainable, or potential, rate ofeconomic expansion. For more than five decades, a growing labor force provided a sizeable boost to thettiltfiithUS"FRBSFEiLttNb22007potentialrateofexpansionintheU.S. economy."FRBSFEconomicLetter,November2,2007.Adults with Bachelor’s Degreesmeasures the percentage of adults (25 years and older) who have a collegedegree or higher. A college education prepares individuals for highly productive, human capital-intensiveoccupations, and also enhances their ability to adapt to new working environments. A high percentage ofadults with college degrees is an indicator of both thepresence of industries that demand such workers andameasureofaregion'sabilitytoeducateorattractskilledworkersameasureofaregionsabilitytoeducateorattractskilledworkers.Prime Workforceis defined as adults aged 25 to 54 years old. This subset of the population has a higherlabor participation rate and is less sensitive to economic downturns and cyclical changes in the economicenvironment.Prime Workforce Migrationmeasures the number of adults age 25 to 54 who relocated to a particular citywithin the last 12 months, as a percentage of total population.Agreaterrate indicates a potential increasein employment opportunities and a community's ability to attract people.The City of Fort Lauderdale should also consider further expanding existing Workforce One trainingprograms (and participate in annual workforce summits) with area employers, universities, and other entities.ATargetedIndustryGrowthStrategyisunderwayintheGreaterFortLauderdaleareaQualifiedtargetATargetedIndustryGrowthStrategyisunderwayintheGreaterFortLauderdalearea.Qualifiedtargetindustry growth companies are eligible for a wide variety of business incentives, workforce training grants,and other business assistance programs. The City of Fort Lauderdale should consider dedicating additionalresources to attract and monitor site selection leads by procuring business development software (SalesForceor other) and ensuring that ongoing lead capture tactics determine why (or why not) companies choose torelocate or expand in Fort Lauderdale.FORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN25
WORKFORCE QUALITY INDICATORSFortLauderdaleranks3rdinoverallworkforcequalityduetoahealthyworkforcegrowthrateof47%,the3rdhighestFortLauderdaleranks3inoverallworkforcequalityduetoahealthyworkforcegrowthrateof4.7%,the3highestshare of Adults with Bachelor’s Degrees (34.4%), the 5thhighest prime workforce population (44.8%), and the 3rdhighestprime workforce migration rate (11%).ndexe: 0 1st2nd3rd4th5th6th7th8th9th10thWorkforce InIndex Rangeto 1009777656463474728223Austin, TX Orlando, FLFort Lauderdale, FLNashville, TN Tampa, FL Miami, FLVirginia Beach, VASavannah, GA Memphis, TNDaytona Beach, FLWorkforce Quality IndicatorsWorkforce Growth2010-20131st2nd3rd4th5th6th7th8th9th10th7.1%5.6%4.7%4.3%3.9%3.4%3.0%2.8%0.1%-0.8%Score: 100 Score: 81Score: 70Score: 65 Score: 60 Score: 54 Score: 48 Score: 45 Score: 12 Score: 0Austin, TX Tampa, FLFort Lauderdale, FLNashville, TN Orlando, FL Miami, FLVirginia Beach, VASavannah, GADaytona Beach, FLMemphis, TNSource: U.S. Census BureauSource: U.S. Census Bureau Adults with Bachelor's Degrees2010-20121st2nd3rd4th5th6th7th8th9th10th44.9% 34.5%34.4%32.6%32.5%32.1%25.1%23.7%22.4%18.2%Score: 100 Score: 61Score: 61Score: 54 Score: 54 Score: 52 Score: 26 Score: 21 Score: 16 Score: 0Austin, TX Nashville, TNFort Lauderdale, FLTampa, FLVirginia Beach, VAOrlando, FL Savannah, GA Memphis, TN Miami, FLDaytona Beach, FLSource: U S Census Bureau U S Average = 28 5%Source: U.S. Census Bureau U.S. Average = 28.5%Prime Workforce2010-20121st2nd3rd4th5th6th7th8th9th10th48.1% 47.7%45.9%45.6%44.8%44.1%43.7%41.1%39.4%35.4%Score: 100 Score: 97 Score: 83 Score: 80Score: 74Score: 69 Score: 65 Score: 45 Score: 31 Score: 0Austin, TX Orlando, FL Miami, FL Nashville, TNFort Lauderdale, FLTampa, FLVirginia Beach, VAMemphis, TN Savannah, GADaytona Beach, FLSource: U S Census Bureau U S Average 40 7%Source: U.S. Census Bureau U.S. Average = 40.7%Prime Workforce Migration2010-20121st2nd3rd4th5th6th7th8th9th10th14.7% 13.6%11.0%10.8%10.5%9.8%8.6%8.6%7.5%6.8%Score: 100 Score: 86Score: 54Score: 51 Score: 47 Score: 38 Score: 23 Score: 23 Score: 9 Score: 0Orlando, FL Austin, TXFort Lauderdale, FLNashville, TN Tampa, FL Miami, FL Memphis, TNVirginia Beach, VASavannah, GADaytona Beach, FLSource: U S Census Bureau U S Average = 6 8%FORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 26Source: U.S. Census Bureau U.S. Average = 6.8%Sources: http://www.bls.gov/opub/mlr/2012/01/art3full.pdf
INNOVATION“lliINNOVATIONAn environment of innovation through entrepreneurial business developmentand small business incubation linkages to a range of national, regional andlocal programs managed by a dedicated City of Fort Lauderdale staff resourcefocused on increasingthe number ofsustained high tech and information and“Top 10 Small American Cities of the Future”–Foreign Direct Investment Magazineggcommunication technology (ICT) start ups. A destination for new residents andworkers with advanced/high tech degrees with the capacity to increase thenumber of patents issued to Fort Lauderdale companies.Percentage of Workers in Science Industriesrepresents the share of the populationinvolvedinprofessionalscientificandtechnicalservicesindustriesginvolvedinprofessional,scientific,andtechnicalservicesindustries.Percentage of Adults with Advanced Degreesmeasures the percentage of adults (25 yearsand older) with advanced degrees (i.e., masters, professional, or PhDs.)Patents per 100,000 Residentsmeasure the volume of new patents in a jurisdiction asreported by the U.S. Patent and Trademark Office, Patent Technology Monitoring Teamavailable at http://www.uspto.gov.The High Tech and Information and Communication Technology (ICT) Start Up Densityindex is a measure of startup density based on location quotients for new high-tech andICTfirmsThelocationquotientmeasurestheconcentrationofhightechorICTstartupsinICTfirms.Thelocationquotientmeasurestheconcentrationofhigh-techorICTstartupsina region relative to the average across the entire U.S.A value of one indicates that a region has the same density of startups as does the U.S. asa whole. Density measures that are greaterthan one indicate above average densities.The opposite is true for values less than one. Data is available only at the metropolitanlevel (MSA). More information about this data source is available from the KauffmanFoundation.FORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN27
INNOVATION INDICATORSFort Lauderdale ranks 2rdin Innovation due to 5thhighest share of workforce in science industries, the 2ndhighestltifdltithddid(128%)th3rdhi h tttiftt100000population ofadultswithadvancedsciencedegrees(12.8%),the3rdhighestconcentration ofpatentsper100,000residents, and 2ndhighest “high tech” and information and communications technology (ICT) density.tionex: 0 to 1001st2nd3rd 4th 5th 6th 7th 8th 9th 10thInnovaIndeIndex Range:1005352 45 40 37 20 18 17 13Austin, TXFort Lauderdale, FLTampa, FL Orlando, FLVirginia Beach, VANashville, TNDaytona Beach, FLMemphis, TN Miami, FL Savannah, GAInnovation Indicators s% of workers in Science Industries2005-20091st2nd3rd4th5th6th7th8th9th10th10.4% 9.1%8.5% 8.2%7.5%6.6% 6.4% 4.4% 4.0% 2.9%Score: 100 Score: 82 Score: 74 Score: 70Score: 61Score: 49 Score: 46 Score: 21 Score: 16 Score: 0Austin, TX Tampa, FL Orlando, FLVirginia Beach, VAFort Lauderdale, FLDaytona Beach, FLNashville, TN Savannah, GA Memphis, TN Miami, FLSource: ESRI Business AnalystSource: ESRI Business Analyst of Adults with AdvancedDegrees2010-20121st2nd Tied2rd Tied 4th 5th 6th 7th Tied 7th Tied 9th 10th16.4%12.8%12.8% 12.4% 11.4% 11.0% 8.5% 8.5% 8.2% 6.2%Score: 100Score: 65Score: 65 Score: 61 Score: 51 Score: 47 Score: 23 Score: 23 Score: 20 Score: 0Austin, TXFort Lauderdale, FLNashville, TN Tampa, FLVirginia Beach, VAOrlando, FL Memphis, TN Savannah, GA Miami, FLDaytona Beach, FL%FLVAFLSource: U.S. Census Bureau U.S. Average=10.7atents per 100,000 Residents2009-20111st2nd3rd4th5th6th7th8th9th10th204765539373130282315Score: 100 Score: 32Score: 21Score: 13 Score: 12 Score: 8 Score: 8 Score: 7 Score: 4 Score: 0Fort LauderdaleDaytona BeachVirginia BeachPa1R2Austin, TX Memphis, TNFort Lauderdale, FLTampa, FL Nashville, TN Orlando, FL Miami, FLDaytona Beach, FLVirginia Beach, VASavannah, GAMeasured at the County Level Source: U.S. Patent and Trademark Office and U.S. Census Bureau U.S. Average = 343Tech and Startup ensity20101st2nd3rd Tied 3rd Tied 5th 6th 7th Tied 7th Tied 9th 10th1.75 1.25 1.05 1.05 0.90 0.80 0.65 0.65 0.45 0.30 Score: 100Score: 66Score: 52 Score: 52 Score: 41 Score: 34 Score: 24 Score: 24 Score: 10 Score: 0FORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 28High ICT DeAustin, TXFort Lauderdale, FLOrlando, FL Tampa, FL Miami, FLVirginia Beach, VADaytona Beach, FLNashville, TN Savannah, GA Memphis, TNMeasured at the Metro Level Source: Kauffman Foundation Research Series U.S. Average = 1.0
LIVABILITY“diAn economy committed to promoting a high quality of life through living wages; a mix ofhousing available to the full spectrum of incomes;public transit options connecting residents toemployment centers and visitors to uniqueretail/dining/entertainment offerings;walkable/bikeable infrastructure; public investment in cultural arts, parks, recreation and openspaces;safeandcleanurbanareas“Most Outstanding Green Government”–U.S. Green Building Council South Floridaspaces;safeandcleanurbanareas.Poverty levelis an indicator of the income equality of a community as determined by the U.S. CensusBureau. In 2013, the national average annual threshold income for a single person younger than 65years old in 2013 was approximately $12,000; for a family of four with two children under the age of18, it was $23,600.fd()fklldbhlfdCost ofLiving Index(COLI)is a measure ofkeyliving costs compiledbytheCouncilfor Community andEconomic Research related to the relative cost of goods and services weighted by different types ofconsumer expenditures in urban U.S. households. COLI data is recognized by the U.S. Census Bureau,U.S. Bureau of Labor Statistics, and the President's Council of Economic Advisors. The index comparesthe cost of living in more than 300 U.S. cities.Vi l tCi100000RidtitdbthFBIUifCiRti(UCR)PViolentCrimes per100,000ResidentsisreportedbytheFBIUniformCrimeReporting(UCR)Program.Violent crime is a measure of a jurisdictions relative safety and is considered a key indicator for siteselection and labor force recruitment targets.Housing Affordabilityis reported by the U.S. Census Bureau. Housing affordability is measured as thosehouseholds paying 30% or less of total gross income on housing expenses (including utilities and relatedhomeownersfeesandexpenses)homeownersfeesandexpenses).Walkability Indicatoris the walk score as computed by Walkscore.com. Walk score is as follows: 90–100 Walker’s Paradise - Daily errands do not require a car; 70–89 Very Walkable - Most errands can beaccomplished on foot; 50–69 Somewhat Walkable - Some errands can be accomplished on foot; 25–49Car-Dependent - Most errands require a car; 0–24 Car-Dependent - Almost all errands require a car.Average Commute(in minutes) from home to place of work and work to home as reported by the U.S.Census Bureau.Employment in the Artsis a proxy for access to cultural activities in the community. This indicatormeasures the number of people employed in arts-related industries for every100,000 residents. Arts-related industries include: Arts Schools and Services, Museum and Collections, Performing Arts, andVi lAt/Ph t hDtfthCtiRtddbthAifthAtVisualArts/Photography.DataarefromtheComparativeReportsproducedbytheAmericansfortheArtsusing data from Duns and Bradstreet (2012) at the MSA level (data are not available at the City level).FORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN29
LIVABILITY INDICATORSFort Lauderdale ranks 8rdin overall livabilityrelative to the othercities benchmarked,primarilydue to the highrateofypygpoverty (5th/ 20.4% of the population) and a high cost of living (10th). Fort Lauderdale ranked 5thin terms of violentcrimes per 100,000 residents. These indictors highlight the economic pressures resulting from a diminished middleclass and the need to invest in entrepreneurial business incubation/business development programs to create highquality, high-value job creation activity.vability Indexex Range: 0 to 1st2nd3rd4th5th6th7th8th9th10th61585451514140393827Virginia BeachFort LauderdaleDaytona BeachLivIndNashville, TNVirginia Beach, VASavannah, GA Tampa, FL Austin, TX Memphis, TN Orlando, FLFort Lauderdale, FLDaytona Beach, FLMiami, FLLivability Indicators Rate0121st2nd3rd4th5th6th7th8th9th10th83%19 9%20 0%20 1%20 4%22 7%27 3%27 4%31 5%31 8%Poverty R2010-208.3%19.9%20.0%20.1%20.4%22.7%27.3%27.4%31.5%31.8%Score: 100 Score: 51 Score: 50 Score: 50Score: 49Score: 39 Score: 19 Score: 19 Score: 1 Score: 0Virginia Beach, VANashville, TN Orlando, FL Austin, TXFort Lauderdale, FLTampa, FL Memphis, TN Savannah, GA Miami, FLDaytona Beach, FLSource: U.S. Census Bureau U.S. Average = 14.9%x1st2nd3rd4th5th6th7th8th9th10thCost of Living IndexQ1 201385.2 87.191.992.5 92.7 94.5 96.3 100.0 106.8110.1Score: 100 Score: 92 Score: 73 Score: 71 Score: 70 Score: 63 Score: 55 Score: 41 Score: 13Score: 0Memphis, TN Nashville, TN Savannah, GA Tampa, FL Austin, TXDaytona Beach, FLOrlando, FLVirginia Beach, VAMiami, FLFort Lauderdale, FLSource: Council for Community and Economic Research U.S. Average = 100Violent Crimesper 100,000 Residents20121st2nd3rd4th5th6th7th8th9th10th169 380409616903 1,017 1,156 1,172 1,216 1,750 Score: 100 Score: 87 Score: 85 Score: 72Score: 54Score: 46 Score: 38 Score: 37 Score: 34 Score: 0Virginia Beach, VASavannah, GA Austin, TX Tampa, FLFort Lauderdale, FLOrlando, FLDaytona Beach, FLMiami, FL Nashville, TN Memphis, TNFORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 30Source: FBI Uniform Crime Reporting (UCR) Program U.S. Average = 3871/ According to a 2011 Pew Charitable Trust study, the middle class may be defined as a four-person household earning $32,900 to $64,000.
LIVABILITY INDICATORS, CONTINUEDFortLauderdale’slivabilityperformanceischallengedbyhousingaffordability(50%ofresidentspaymorethan30%ofFortLauderdale slivabilityperformanceischallengedbyhousingaffordability(50%ofresidentspaymorethan30%ofincome on total housing costs), and average commute time(24.2 minutes). However, Fort Lauderdale ranks 2nd inwalkability and 4th in employment in the arts – two of the key livability indicators tracked by Livability.com, anorganization that explores what makes small to mid-sized cities great places to live, work and visit by examining issuesrelated to livability such as walkability, cultural amenities, transportation, urban planning and sustainability.HousingAffordability2010-20121st2nd3rd4th5th6th7th8th9th10th39%41%42%47%47% 48% 48%50%52%61%Score: 100 Score: 90 Score: 87 Score: 66 Score: 65 Score: 59 Score: 58Score: 50Score: 41 Score: 0Vi i i B hDt B hFtL ddlA2Nashville, TN Austin, TXVirginia Beach, VAMemphis, TN Tampa, FLDaytona Beach, FLSavannah, GAFort Lauderdale, FLOrlando, FL Miami, FLPercentage of Households spending 30% or more of their income on housing Source: U.S. Census Bureau U.S. Average = 37.2%abilityoreary 20131st2nd3rd 4th 5th 6th 7th Tied 7th Tied 9th 10th76 54 46 41 39 35 33 33 31 26 WalkaScoFebruaScore: 100Score: 56Score: 40 Score: 30 Score: 26 Score: 18 Score: 14 Score: 14 Score: 10 Score: 0Miami, FLFort Lauderdale, FLTampa, FL Savannah, GA Orlando, FL Austin, TXDaytona Beach, FLMemphis, TNVirginia Beach, VANashville, TNSource: Walkscore.com U.S. Average = N/Amute s)1st2nd3rd4th5th6th7th8th9th10thAverage Comm(in minutes201219.119.821.522.422.723.224.2 24.526.427.9Score: 100 Score: 92 Score: 73 Score: 62 Score: 59 Score: 53Score: 42Score: 39 Score: 17 Score: 0Savannah, GADaytona Beach, FLMemphis, TN Tampa, FLVirginia Beach, VANashville, TNFort Lauderdale, FLOrlando, FL Miami, FL Austin, TXSource: U.S. Census U.S. Average = 25.4 minutesEmploymentin the Arts20121st2nd3rd4th5th6th7th8th9th10th1,524 875664657579556509469468376Score: 100 Score: 43 Score: 25Score: 24Score: 18 Score: 16 Score: 12 Score: 8 Score: 8 Score: 0Nashville, TN Austin, TX Orlando, FLFort Lauderdale, FLMiami, FL Memphis, TN Savannah, GAVirginia Beach, VATampa, FLDaytona Beach, FLdh lli fh dilblFORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 31Measured at the County level Source: Americans for the Arts and U.S. Census U.S. Average = Not Available
HEALTHY BUSINESS ENVIRONMENT“A healthy business environment is characterized by a highly competitive cost of doingbusiness related to land use regulatory controls (planning/zoning approvals andconstruction permitting), perceived investmentrisk, and sustainable business growth rates.In the case of Fort Lauderdale, the City is focused on fostering the market conditions thatwilleffectivelycreateandsustainnewsmall/mediumsizedbusinesses–inparticular“Top 10 Best Downtowns in 2014”–Livability.comwilleffectivelycreateandsustainnewsmall/mediumsizedbusinessesinparticularretail/dining/entertainment establishments.Establishment Growthmeasures the increase in the number of businesses in each countybetween 2010 and 2011. It is a proxy for the ability of each region to fosterentrepreneurship and attract new businesses to the area. Data are from the CountyBiPttfthUSCBBusinessPatternsfromtheU.S.CensusBureau.Concentration of Mid-Size Businessesmeasures the number of mid-size businesses per10,000 residents. Within the U.S. economy, small and medium size businesses account forthe vast majority of firms and approximately half the gross domestic product (GDP). Mid-size businesses are defined as establishments with 10 to 99 employees.City Credit Ratingmeasures the City’s ability to maintain a high quality credit rating isessential to ensure a City's ability to access the most cost-effective world capital marketswill continue as it needs to borrow funds for capital purposes. From a private sectorperspective, a city with a high credit quality credit rating is an indicator that the City maybe an attractivepartnerforpublic-privatepartnerships,orsimplybetterable to financeppppp,pyneeded infrastructure. Moody's rating scale relative to other U.S. municipal or tax-exemptissuers or issues for long-term debt is as follows: Aaa - Issuers or issues rated Aaademonstrate the strongest creditworthiness relative to other U.S. municipal or tax-exemptissuers or issues; Aa - demonstrates very strong creditworthiness; A - Presents above-average creditworthiness. For a description of Moody's rating scale please seedwww.moodys.com.Business Densitymeasures the number of businesses per 10,000 residents at the CountyLevel as reported by the U.S. Census Bureau.FORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN32
HEALTHY BUSINESS ENVIRONMENT“The Cost of Doing Businessmeasures the cost of doing business as reported by Moody'sAnalytics. The reported cost is relative to the U.S. 2013 Edition North American BusinessCost Review, Moody's Analytics.To better gauge regional economic prospects, Moody’s Analytics has developed a cost of“Top 10 Best Downtowns in 2014”–Livability.comdoing business index foreach MSA. The relative business cost index is composed oflaborcosts, tax burdens, energy costs, and office costs. Labor costs are measured by unit laborcosts, or earnings per dollar of output.Unit labor costs are determined for each three-digit NAICS industry for each MSA andcompared with unit laborcosts forthe same industries nationally.pyEnergy costs are measured by average cents per kilowatt-hour (Kwh) charged tocommercial and industrial users. Tax burdens are measured by total taxes and fees as apercent of total personal income in each metro area.Business contributions to unemployment and workers’ compensation programs are alsoincluded in the tax measure because they represent costs forlaborhired.Office costs are measured as the average price paid per square foot for class A officespace. In the overall business cost index, a state-specific component weight system hasbeen adopted to more accurately account for an area’s business cost structure.Ollbdh7%h15%hOn average across allmetro areas, taxburdenshave a7%weight, energy a15%weight,office rents a 27% weight, and unit labor costs a 51% weight. The index is configured sothat the cost of doing business nationally equals 100.An MSA with a cost index of 110 has business costs 10% above the national average; anindex of 90 means an MSA has business costs 10% below the national average.Fort Lauderdale ‘s Cost of Doing Business Index is 96 (indicating it is relatively lessexpensive to do business than the rest of the United States). However, six of the ninecohort cities benchmarked reported a lower cost of doing business (with Memphis at 85the lowest). The breakdown of these figures indicate that Fort Lauderdale’s labor, energyandofficespacecostsarestillrelativelylowerthantherestoftheUnitedStates.andofficespacecostsarestillrelativelylowerthantherestoftheUnitedStates.FORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN33
HEALTHY BUSINESS ENVIRONMENT INDICATORSFort Lauderdale’s healthy business environment ranks 4thdue to a relatively healthy business establishment growthrate (0.3% annually, or4th) coupled with a relatively lowerconcentration ofmid-sized businesses (55 businessesper 10,000 City of Fort Lauderdale residents, or 8th).ndexto 1001st2nd3rd4th5th6th7th8th9th10thBusiness Environment InIndex Range: 0 t72716865655757434339Austin, TX Nashville, TN Savannah, GAFort Lauderdale, FLOrlando, FL Tampa, FLVirginia Beach, VADaytona Beach, FLMemphis, TN Miami, FLBusiness Environment Indicators ent 1st2nd3rd4th5th6th7th8th9th10th1.7%1.6%0.6%0.3%0.1%-0.5%-0.7%-0.9%-1.7%-2.7%EstablishmeGrowth2010-111.7%1.6%0.6%0.3%0.1%0.5%0.7%0.9%1.7%2.7%Score: 100 Score: 98 Score: 75Score: 68Score: 64 Score: 51 Score: 46 Score: 41 Score: 23 Score: 0Austin, TX Miami, FL Tampa, FLFort Lauderdale, FLOrlando, FL Savannah, GADaytona Beach, FLVirginia Beach, VANashville, TN Memphis, TNMeasured at the County Level Source:Bureau CensusUS growth06%Measured at the County Level Source: Bureau Census U.S. growth = -0.6%entration of e Businesses20111st2nd3rd4th5th6th7th8th9th10th84777566666459555145Score: 100 Score: 81 Score: 76 Score: 53 Score: 53 Score: 47 Score: 35Score: 26Score: 15 Score: 0ConceMid-SizeNashville, TN Savannah, GA Austin, TX Memphis, TN Orlando, FLVirginia Beach, VATampa, FLFort Lauderdale, FLMiami, FLDaytona Beach, FLNumber of Mid-size businesses per 10,000 residents Measured at the County Level Source: U.S. Census Bureau U.S. Average = 58FORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 34
HEALTHY BUSINESS ENVIRONMENT INITIATIVES, CONTINUEDFort Lauderdale’s healthy business environment further ranks 4thdue to the City’s credit rating (Aa1, or 3rdplace)and the highest business density rate (320 businesses per10,000 City ofFort Lauderdale residents). FortLauderdale’s overall business environment ranking is challenged by a relatively high cost of doing business (ranked7thdue to the relatively high cost of labor, energy and office space when compared to the cohort cities).Business Environment Indicators, Continueds Credit RatingFeb 20141st tied 1st tied3rd tied3rd tied 3rd tied 3 tied 7th tied 7th tied 7th tied 10thAaa AaaAa1Aa1 Aa1 Aa1 Aa2 Aa2 Aa2 A2Score: 100 Score: 100Score: 80Score: 80 Score: 80 Score: 80 Score: 60 Score: 60 Score: 60 Score: 0City'sFAustin, TXVirginia Beach, VAFort Lauderdale, FLOrlando, FL Tampa, FL Nashville, TNDaytona Beach, FLMemphis, TN Savannah, GA Miami, FLSource: Moody's (Seniormost Tax Backed Rating)y1st2nd3rd4th5th6th7th8th9th10thBusiness Density2011320301 287 287 279 270 263 244 236 211Score: 100Score: 83 Score: 70 Score: 70 Score: 62 Score: 55 Score: 48 Score: 31 Score: 23 Score: 0Fort Lauderdale, FLMiami, FL Nashville, TN Austin, TX Orlando, FL Savannah, GA Tampa, FLVirginia Beach, VADaytona Beach, FLMemphis, TNFLVAFLNumber of businesses per 10,000 residents Measured at the County Level Source: U.S. Census Bureau U.S. Average = 240Business1st2nd3rd4th5th6th7th Tied7th Tied 9th10th85878889929396 96104107Cost of Doing B2011Score: 100 Score: 91 Score: 86 Score: 82 Score: 68 Score: 64Score: 50Score: 50 Score: 14 Score: 0Memphis, TN Savannah, GADaytona Beach, FLNashville, TNVirginia Beach, VAOrlando, FLFort Lauderdale, FLTampa, FL Austin, TX Miami, FLFORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 35Measured at the MSA Level Source: Moody's Analytics U.S. Average = 100
IV. Proposed Economic Development Strategic ActionDevelopment Strategic Action Plan Initiatives FORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN36
SUMMARY ECONOMIC DEVELOPMENT STRATEGIC ACTION PLANIMPLEMENTATION INITIATIVESIMPLEMENTATION INITIATIVESThe results of the economic benchmarking assessment form the basis of the Economic Development StrategicAction Plan’s implementation initiatives. In an effort to continuously improve the competitive position of the City ofFort Lauderdale as a place to live, work and play, the Department of Sustainable Development proposes to design,implementandmanagethefollowingeconomicdevelopmentinitiativesthataredesignedtoaddresslaggingEconomic Performance Initiativesimplementandmanagethefollowingeconomicdevelopmentinitiativesthataredesignedtoaddresslaggingperformance of key metrics when compared to other comparable cities. The EDSAP’s implementation will requireinvestment in personnel, capital andoperating expenditures. A detailed explanation of each initiative and theEDSAP’s estimated five-year cost and implementation recommendations are provided in the following discussion.Economic 1: Establish a Revolving Loan Fund Targeted for Retail/Entrepreneurial Development ActivityEconomic 2: Design, Implement & Manage an Expedited Planning Approvals Program for Qualified Sustainable Development ProjectsEconomic 3: Design, Implement & Manage a Qualified Target Industry Lead Capture Management SystemWorkforceInitiativesWorkforce InitiativesWorkforce 1: Sponsor Economic Gardening Pilot Program for 2nd Stage Entrepreneurial CompaniesWorkforce 2: Sponsor/Co-Sponsor a Soft Skills Training Program Targeting Qualified Target IndustriesInnovation InitiativesIti 1DiIl t& M Bi A l t PInnovation 1:Design,Implement& Manage a Business Accelerator ProgramInnovation 2: Sponsor the Kauffman Foundation FastTrac Program in Fort LauderdaleInnovation 3: Sponsor the Kauffman 1 Million Cups Pilot Program in Fort LauderdaleLivability InitiativesLi bilit 1Ad t f W E i t C t D t t th Ai t C ti C t S td th B hLivability 1:Advocate for Wave Expansion to Connect Downtown to the Airport, Convention Center, Seaportand the BeachLivability 2: Design, Implement & Manage an Urban Culture Curation ProgramHealthy Business Environment InitiativesBusiness 1: Design, Implement & Manage a Citywide Placemaking Marketing/Branding Campaign Bi 2DiI l t & M Cit id R t il R it tPFORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 37Business 2:Design,Implement & Manage a Citywide Retail RecruitmentProgramBusiness 3: Conduct a Sub-Area Level Parking Assessment
ECONOMIC PERFORMANCE INITIATIVESTfthhFtLddl’tiftitithCithlditiTofurtherenhanceFortLauderdale’sstrong economicperformance competitiveness,theCityshouldinvestinadditional staffing and seed funding to support expansionof quality target industries, retail development, andentrepreneurial development activity.Key Staff/ PartnersProposed Initiatives Program Description Scale of ProgramFunding SourcesTime-frameEstablish a Revolving Loan Fund Targeted for A self-sustaining, low interest revolving loan for eligible capital improvements, machinery and equipment, and working capital for small businesses $500K in seed capital (matched by $1 million Local FinancialInstitutions, General Fund DDA, Chamber of Commerce, Uptown Development District, Economic 1:Fund Targeted for Retail/Entrepreneurial Development Activitywith less aggressive terms/venture capital start-upsto encourage job growth; local funding requires EDA Council vote and Economic Development Committee review(matched by $1 million from EDA) and private fundingGeneral Fund, CRA Districts, CDBG, and Airport FundMerchant Associations, Local Commercial Brokers, Property OwnersYear 1Hire an Expedited Planning dlCase worker with planning/zoning/economic development expertise to shepherd developer $$General Fund, ld dEconomic 2: and Development Case Workerdevelopment expertise to shepherd developer through the development approval process, connect to economic development tools1 FTE $60K-$80K Building Fund, CRADSD Year 1Economic 3:Design and Implement a Qualified Target Industry Ld Ct M t Hire two dedicated staff persons (Economic Development Program Manager and entry level Economic Development Program Coordinator) to d i d i l t b i d l t l d 1 FTE at $30K-$60; 1 FTE at $60K-80K + General Fund, CRA DSDYear 1 Lead Capture Management Systemdesign and implement a business development lead capture management system focused on Qualified Target Industry businesses.$software license costCRA FORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 38
WORKFORCE QUALITY INITIATIVESTo furtherbolsterthe CityofFort Lauderdale’s workforcequalitycompetitiveness, the Cityshould sponsoranyqypypEconomic Gardening Pilot Program for 2ndstage entrepreneurial companies offered by the Edward LoweFoundation.ProposedInitiativesProgram DescriptionScale of ProgramFunding Key Staff/ Time-Proposed InitiativesProgram DescriptionScale of ProgramgSourcesyPartners frameEconomic Gardening is an economic development programfocusedonhelping“secondstage”companiesgrowThesefocusedonhelpingsecondstagecompaniesgrow.Theseemerging growth companies are defined as having $1 to $50million in sales and 10-99 employees. They have proof of product,proof of market and proof of management skills. They typically havethe potential for additional sustained growth but do not have accessto the sophisticated tools and concepts of larger companies.Approximately $5,000 for EconomicGardening Certifications:(General Track, Team Leader, andWeb/Social Media Training) in Year1l$4290iif5General Fund, Workforce 1:Sponsor Economic Gardening Pilot Program for 2nd Stage Entrepreneurial CompaniesThere is substantial research that indicates a substantial volume ofhigh quality/high value new jobs are generated by these types ofcompanies (up to 10% of all companies in most communities).Accelerating the growth potential of this highly productive group is avery efficient and effective economic development tactic forrebuilding the middle class.1plus$4,290xminimum of5Second Stage Companies covers: 36hours of direct technical assistance;fees for members committed toproviding the best service possiblefor your companies; the GreenhouseSoftwareSystem,asecureonline,CRA, CDBG, Airport Fund, Tourism Tax Allocation, DDA, Chamber, AlliGeneral Fund, CRA, Tourism Tax ReallocationYear 1-5The Pilot Program provides: research to help companies makedecisions in strategic areas (market research, industry trends,competitor intelligence, new product releases, GIS computer mapsof customers/competitors/potential markets/trade areas); searchengine optimization, web marketing, social media; and analysis infiveclassesofbusinessproblems(corestrategy;marketdynamics;SoftwareSystem,asecureonlineapplication and collaboration space;a virtual tutorial to help you navigatethe Greenhouse; and coordinationto schedule pilot project companiesupon acceptance.Alliancefiveclassesofbusinessproblems(corestrategy;marketdynamics;innovation; temperament; qualified sales leads).FORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 39
WORKFORCE QUALITY INITIATIVES, CONTINUEDTo furtherbolsterthe City ofFort Lauderdale’s workforce quality competitiveness, the City should co-sponsortheBroward CareerSource Startup Workz entrepreneurial development/business acceleration program and sponsor asoft skills training program in partnership with area Qualified Target Industry (QTI) employers.Proposed InitiativesProgram DescriptionScale of ProgramFunding SourcesKey Staff/ PartnersTime-frame$5 000 iorce 2:Sponsor a Soft Skills Training Program According to CareerSource Broward and Collaborative Industry Forums, Fort Lauderdale companieshire for competence but fire for character. The prevailing labor pool has the qualifications and training, but lacks soft skills. The City of Fort Lauderdale should explore sponsoring a soft skills training pilot $5,000 per train-the-trainer certification (including travel) to $30,000 per year for custom on-site training; cost General Fund, CRA, CDBG, Airport Fund, Broward DSD, WorkforceOne, DDA, Chamber Year 2-5WorkfoTargeting Qualified Target IndustriesLauderdale should explore sponsoring a soft skills training pilot program to expand the character and competence of the area labor force (i.e., Smart Talent’s custom, on-site Discovering Emotional Intelligence and Team Emotional Intelligence Training Programs – www.emotionalintelligence.net.)training; cost varies with training level and participants (from 1/2 day to 3 days, with online support options)Broward County, DDA, Chamber, Alliance, Chamber, Alliance, South Florida Marine IndustryYear 25FORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 40
INNOVATION INITIATIVESTlFtLddl’th i iitithCithlddidil tTh lAtToleverageFortLauderdale’sthrivinginnovation economy,theCityshoulddesign andimplementaTechnology,Arts,and Culinary Business Incubation Space/Accelerator Program, sponsor the Kaufman Foundation FastTrac Program,and sponsor the Kaufman 1 Million Cups Pilot Program in Fort Lauderdale.Proposed InitiativesProgram DescriptionScale of ProgramFunding SourcesKey Staff/ PartnersTime-frameA growing number of specialized, market-specific business accelerators are helping entrepreneurs around the country get their businesses off the ground :Di I l t & helping entrepreneurs around the country get their businesses off the ground through space subsidies, programming, and marketing/branding assistance. Accelerators offer a proven model for starting scalable companies by substantially lowering the risks associated with launching a new venture. They provide valuable resources that most startup founders cannot access on their own, including: Office Space, Internet Hosting and Tools; Lean Startup Methodologies; Startup Company Best Practices; Hands-on Mentoring by Successful Entrepreneurs; Professional Services (legal finance marketing Facility + Renovation Costs for Sistrunk Tech Business Incubation Space :(30 sq ft / $3 million annual lease value (opportunity costs) + $1 million capital + General Fund, Broward County/Career DSD, CDBG, Fort Lauderdale Alliance, Chamber of Innovation 1:Design, Implement & Manage a Business Incubation Space/Accelerator ProgramSuccessful Entrepreneurs; Professional Services (legal, finance, marketing, operations); Access to Seed Capital and Venture Capital. The Business Accelerator program will leverage existing technologies and recruit and train the teams capable of launching them into the market. The teams will be comprised of seasoned professionals who are in career transition or looking to leave corporate life to join a startup.costs) + $1 million capital + program operating cost contribution of $50K/year)$500K annually for program management labor contract labor and seed capital for initial launch to be self-funded through County/Career Source Broward; Philanthropic Sources, Kaufman Foundation FastTrac NewVenture Program Funding; other TBDChamber of Commerce,CareerSource Broward Collaborative Industry Forums, Kaufman FoundationYear 2-5 This program should be structured to serve as more than just physical space assistance – fully coordinating with the Economic Development Marketing/Branding, Retail Recruitment and Urban Culture Curation, Kaufmann Foundation and business training program functions to solidify the sense of place and workforce attraction to emerging technology/arts innovation district activity in targeted sub-areas.to be selffunded through member dues within five years.other TBD.FoundationFORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 41
INNOVATION INITIATIVES, CONTINUEDTo leverage Fort Lauderdale’s thriving innovation economy, the City should design and implement a Technology,Arts,and Culinary Business Incubation Space/Accelerator Program, sponsor the Kaufman Foundation FastTrac Program, andsponsor the Kaufman 1 Million Cups Pilot Program in Fort Lauderdale.Proposed InitiativesProgram DescriptionScale of ProgramFunding SourcesKey Staff/ PartnersTime-frame:Kauffman FastTrac is a global provider of training that equips aspiring and established entrepreneurs with the business skills and insights, tools, resources, and network to start and grow successful businesses FastTrac 1 PT FTE (Proposed Economic l M DSD, FortLauderdale All Innovation 2Sponsor the Kaufman Foundation FastTrac Program in Fort Lauderdaleresources, and network to start and grow successful businesses. FastTrac programs are delivered by a variety of affiliate organizations – non-academic, academic, nonprofit and for-profit – including chambers of commerce, business development centers, local and regional economic development councils, colleges, universities, microenterprise organizations, and consulting firms. It is recommended that the City sponsor quarterly FastTrac events focused on a range of target industries/emerging technology innovation districts.Development Program Manager and/or Assistant); 3 FastTrac Annual Program License Fees and 3 facilitator training fees for NewVenture, GrowthVenture, TechVenture and ($4,850).General Fund, CRA,Broward CountyAlliance, Chamber, Workforce Development, South Florida Regulatory and PlanningYear 1-5innovation districts.n 3:Sponsor the 1 Million Cups is a program run by entrepreneurs for entrepreneurs. The program takes place every Wednesday morning from 9:00-10:00 AM in locations all around the country. City volunteers run the program semi-autonomously in coffee shops, co-working spaces, and TV stations. Developed by Kauffman Labs for Enterprise Creation, and refined by 1 PT FTE (Proposed Economic Development Program Manager and/or Assistant) to serve as a liaison with CareerSource DSD, CareerSource Broward, InnovatioKaufman 1 Million Cups Pilot Program in Fort Lauderdaleentrepreneurs around the world, I Million Cups is a way to activate a city’s community of entrepreneurs through online curriculum, coaching and experiential learning. The program is run by and for entrepreneurs--a dedicated group of startup community organizers in each active community volunteer their time to organize a promote 1 Million Cups each week. Teams of organizers license the 1 Million Cups toolset from Kauffman Labs for free, and events are run semi-autonomously.Broward and area entrepreneurs specifically geared to support Qualified Target Industries (cost is in kind staff space and marketing support and miscellaneous incidentals)General Fund, CRAGreater Fort Lauderdale Alliance, Chamber of CommerceYear 1-5FORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 42
LIVABILITY INITIATIVESTtthi ibilitfFtLddl’ititifldid tthCitTopromotethevisibilityofFortLauderdale’seconomiccompetitivenessforarea employers andnew residents,theCityof Fort Lauderdale should advocate for the Wave expansion to expand connectivity to the Downtown and design,implement and manage a citywide Urban Culture Curation Program focused on placemaking opportunities.FundingKey Staff/TimeProposed InitiativesProgram DescriptionScale of ProgramFunding SourcesKey Staff/ PartnersTime-frameThe Wave is Fort Lauderdale’s streetcar system that seeks to createa livable community by integrating land use, transportation andeconomic development. The system is currently funded to: connectDowntown's many points of interest and link to the regional transitkfffhhddvability 1:Advocate for Wave Expansion to Connect Downtown Fort Lauderdale to hhdnetwork;increasefoot traffic throughimprovedpedestrianamenities; direct growth to the urban core and away fromsurrounding neighborhoods; and serve as a catalyst to advance theplanned, regional rail systems.According to the American Public Transportation Association, thepositive catalytic impact of public transit investment on localiibt tilEdlltbliInvestment in feasibility planning,engineering and construction, andannual operations and maintenance(i2ilti)Special Assessment, MPO, Federal, City of Fort Lauderdale General Fund, Broward Transportation & Mobility, DSD, DDA, Broward County Mass Tit B d Year 3-5Livthe Beach and to the Airporteconomicsissubstantial.Everydollar spenton publictransportation generates $4 in economic returns. Public transitdrives the local economy and directly generates business sales,revenues, and new private investment.The City of Fort Lauderdale’s Transportation & Mobility Departmentshould continue to advocate to extend the current planned systemttDtFtLddltthBhdth(assuming2mileextension).owa d County General Fund, Tourism Tax ReallocationTransit, Broward County MPOtoconnectDowntownFortLauderdaletotheBeachandtheAirport.D Il From the City of Santa Ana, CA to Providence, RI to theGuggenheimMuseuminNewYorkCity,theroleofUrbanGeneral Fund / FAU / Livability 2:Design, Implement & Manage a Citywide Urban Culture CurationProgramGuggenheimMuseuminNewYorkCity,theroleofUrbanCuratorisemergingasamechanismforcreatinganenhanced sense of place and destination driver in urbanenvironments. Programs range from self-funded artistcollectives to formal full-time positions.1 FTE $60K-$80K + marketing, event planning and other expenses (TBD)/ FAU / Broward College / NEA and AIA Grants / OtherDSD, Florida Atlantic University School of Architecture Year 3FORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 43
HEALTHY BUSINESS ENVIRONMENT INITIATIVESTo support a healthy business environment, the City of Fort Lauderdale should implement a citywidemarketing/branding campaign, hire a dedicated retail recruitment manager, and conduct a sub-area level parkingassessment.Proposed InitiativesProgram DescriptionScale of ProgramFunding SourcesKey Staff/ PartnersTime-frameCities across the U.S. are implementing marketing/branding campaigns to elevate economic development investments and placemaking that serve to trump traditional site selection attraction tactics. These campaigns create a distinct brand for a city as a place to live work and play attracting targeted labor force Minimum 3-year investment requirement: 1 FTE to serve as Economic Development Chief General Fund, Broward County Tourism Tax Reallocation DSD, City of Fort Lauderdale Office Business 1:Design, Implement & Manage a Citywide Placemaking Marketing/Branding Campaign live, work and play --attracting targeted labor force through in-migration, private and philanthropic investment in revitalization, cultural and arts development, and other transformative events that put a place on the map with national recognition as a destination. The City of Fort Lauderdale should design and implement a citywide marketing/branding campaign Economic Development Chief Marketing/Branding Officer (CMO) at $60K to $80K; consulting fees for initial program design: $150K; ongoing marketing/ branding/ placemaking (signage, Reallocation, CRAs, Airport Fund, DDA, Chamber of Commerce, Greater Fort Lauderdale Lauderdale Office of Public Information, Transportation & Mobility, BIDS, DDA, Uptown Development Year 1-5py ggpgwith a long-term investment horizon and dedicated city resources (i.e., proposed Economic Development Manager) to liaise with each city department implementing cross-cutting Vision Plan objectives (and integrated with ongoing investments in marketing underway).pg(g g,wayfinding, print, web, social media, event planning); $75K annually.Alliance, NationalEndowment for the Arts Our Town grantpDistrict, Merchant AssociationsBusiness 2:Design, Implement & Manage a Retail Recruitment ProgramThe City of Fort Lauderdale should hire a dedicated Retail Recruitment Manger to implement the Retail Development Strategy and liaise with existing BID/CRA stakeholders$150,000 for dedicated contract staff management, strategy planning, marketing, and operations over 3-5 yearsDSD, Broward County DSDYear 2The City of Fort Lauderdale should conduct an in-depth Business 3:Conduct a Sub-Area Level Parking Assessment ypparking assessment at the sub-area level in tandem with implementation of the Retail Development Strategy to evaluate the financial feasibility of a municipal parking garage (in particular in Flagler Village, North Beach and Sistrunk Boulevard).$60K for consulting fees; up to $17K per space for municipally funded above grade parking structure.DSD, Broward County Parking FundDSD, Transportation & Mobility (Public Parking)Year 2FORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 44
V. Retail Development Strategy & Targeted Sub-Area RecommendationsFORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN45
CITY OF FORT LAUDERDALE RETAIL DEVELOPMENT STRATEGYRETAIL RECRUITMENT PROGRAMA primary area of focus for the City of Fort Lauderdale’sEconomic Development StrategicAction Plan is related to retaildevelopment opportunities. To inform the Plan’s retaildevelopment recommendations, a detailed assessment of marketconditions andprojected trends was undertaken forresidential,The City ofFort Lauderdale offers extremely competitive retailshopping centers in some locations. Analysis indicates thathousehold and visitor spending is substantially higher thanavailable retail, with some retail centers clearly in need ofredevelopment and reuse.pj,office, hotel and industrial uses in the City of Fort Lauderdaleand specifically within the following sub-areas:Uptown Fort Lauderdale/FXE (surrounding the ExecutiveAirport)To better serve existing local, regional and national chainretail business – and to attract new ones – Fort Lauderdalerequires a Retail Recruitment Program to develop a sub-areabased retail tenanting strategy, initiate and track retail leasingleads,and to serve as a targetedliaisonwiththeCityofFortRETAIL RECRUITMENT STRATEGYThe Galt-Ocean MileNorth BeachDowntown Regional Activity Center (D-RAC)SistrunkBoulevard,gyLauderdale.The following retail development strategy is proposed withthe following goals:increase retail activity within the CitySistrunkBoulevardSE 17th Street Corridor (Broward County Convention Centerto the Broward Health Medical Center)The assessment included a particular focus on retaildevelopment/redevelopment opportunities includingaretailimprove the existing retail mixincrease retail salesattract new retailers to the City without compromisingexistingviableretailbusinessesppppgleakage analysis, opportunities to recapture lost retail sales, andcompetitiveness of current retail recruitment strategies.To encourage the development of the Retail DevelopmentStrategy is comprised of the following components:existingviableretailbusinessesRetail Recruitment ProgramCitywide Placemaking Marketing/Branding ProgramUrban Culture Curation ProgramExpeditedPermittingApprovalsProgramFORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 46ExpeditedPermittingApprovalsProgramSub-Area Level Parking Assessment
RETAIL RECRUITMENTRETAIL RECRUITMENT PROGRAMRETAIL RECRUITMENT FUNCTIONSCreate & maintains a retail inventorydatabaseTo implement a successful retail recruitment program, it is important tobalance multiple stakeholder priorities that are not all the same:Property Owners:Work with property owners & brokers tofind retail prospectsTravel locally & regionally to identifyretailers who might expand &tththiKeep space filled and receive a return-on-investment; national‘credit’ tenants viewed as lower risk than local operators. Ownerinvestments are justified only by ‘investment-grade’ rents, which resultfrom ‘investment-grade’ sales.CommercialBrokers:strengthenthemixProvide overall coordination betweenall stakeholdersUse market information to implement atargetedretailmix&voluntaryCommercialBrokers:Only make money if a sale or lease transaction occurs; motivation isgenerally to “close the deal”, not manage the tenant mix.Retailers:targetedretailmix&voluntary-participation leasing strategyKnow properties in commercial districts:owner needs, expiring leases,businesses for sale, etc.Require sustained sales & complementary adjacent uses; sometimesview other businesses only as competition, not as part of ashopping/dining district. Financing more difficult to obtain forlocally-owned, “mom & pop” businesses.LocalGo ernmentProvide summary market information toprospective retailers: rent & propertyvalues; current sales; availablecustomer base; incentives; etc.LocalGovernment:Goal is to maintain & attract jobs;strengthen tax base; preventdisinvestment & decline; has limited control over uses or tenant mix ifwithin zoned categories.CilMtP(BID /CRA )CommercialManagementPrograms(BIDs/CRAs):Retail strategy is critical to commercial vitality & drawing allconsumer segments; can coordinate between other partners.FORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 47
RETAIL RECRUITMENT PROGRAMRETAIL RECRUITMENT PROGRAMRETAIL RECRUITMENT PROGRAM RESOURCE NEEDSFull-time or part time staff & multi-year fundingCurrentbaselinespaceinventory:squarefootagesUnlike a shopping center or site where one ownercontrols retail use-mix and locations, the sub-areaRETAIL RECRUITMENT PROGRAMCurrentbaselinespaceinventory:squarefootagesby location; ownership; incentives packages;parkingTraffic counts on adjacent roadways (often used byretail property committees in approving locations)commercial districts include multiple property owners.Since stakeholders have multiple, distinct objectives, nosingle entity is responsible for long-range decisions, orfor an integrated retail strategy.Zoning & land use controls for commercial districtAvailable spending by residents, workers &tourists/visitorsCompeting areas & competitive positioning withinImplementing a retail strategy in Fort Lauderdale will bevoluntary and require a key point of contact within theretail recruitment program.Retail recruitmentprogram manager(s)will work side bythe marketLocal employment trends (for potential workermarkets spending patterns)Local tourism data (for potential visitor marketd)pgg()yside with each of these stakeholder perspectives on adaily basis – connecting retail spaces with high qualitytenants within the context of market realities and publicpolicy objectives.spending patterns)FORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 48
HOW CAN AN URBAN CULTURE CURATOR URBAN CULTURE CURATION &SUPPORT RETAIL DEVELOPMENT?URBAN CULTURE CURATION & PLACEMAKING MARKETING/ BRANDING PROGRAMSFrom coast to coast, cultural and educational institutions, artist collectives,and cities are investing time and resources in urban culture curationprograms. The role ofa dedicated Urban Culture Curatoris to manageIn addition to dedicatingresources to a Retailpggoverall strategic and operational responsibility for staff, programs, andexecution of the City’s mission to enhance the cultural vibrancy of thecommunity through the development of public art and placemaking inpartnership with the community’s institutional/educational anchors.Addi tdUbCltCtillit dtitifgRecruitment Program, the City of Fort Lauderdaleshould explore supporting targeted placemakinginvestments such as funding an “Urban CultureCurator” in partnership with the Florida AtlanticUniversity’s School of Architecture’s MetroLabCllbAdedicatedUrbanCultureCuratorwillintroduce opportunitiesforpartnerships and joint projects. In Fort Lauderdale, the faculty and staff fromFlorida Atlantic University’s School of Architecture are actively leveraging thecity’s Arts and Technology hub activities.The mission ofthe MetroLAB Collaborative is to engagefaculty,students,andCollaboration.This role should be funded by a combination ofGeneral Fund, CRA, and CDBG funds and serve as aliaison with area retail merchant associations, BeachCommunityRedevelopmentArea,Downtownggy,,the community in collaborative activities that advance scholarship andimprove the well-being of the community within a metropolitan sub-tropicalsetting.The MetroLAB Collaborative endeavors to discover knowledge throughiiid dbthdi i litthiittddlldlblCommunityRedevelopmentArea,DowntownDevelopment Authority, business improvement districts,and the City’s Public Information Office marketingand branding campaign manager.inquiry, guidedbythedisciplines attheuniversity,toaddresslocalandglobalchallenges; and to explore, exchange, and apply knowledge and informationfor the mutual benefit, resilience, vitality and health of our communities andthe regional physical environment. The position would report directly toEconomic & Community ReinvestmentDirector with programmatic supportfromFAUandoverseeplacemaking/publicrealmimprovementsadvisefromFAUandoverseeplacemaking/publicrealmimprovements,adviseplanning and zoning initiatives to ensure a focused protection of the City’svital tourism industry assets.A dedicated Urban Culture Curator funded by the City of Fort Lauderdale willserve to create a distinct sense of place in targeted redevelopment areas inFORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 49tandem with ongoing marketing, branding and placemaking investmentsunderway.
UPTOWN FORT LAUDERDALE/FXE (SURROUNDING THE EXECUTIVE AIRPORT)RETAIL DEVELOPMENT STRATEGIESRetailrecruitershouldtargetFood&Beverage()RetailrecruitershouldtargetFood&Beverageofferings for hotel guests and employees – sub-area is currently undersuppliedLong-term, consider redevelopment of selectedparcelsabuttingFXESTRENGTHS/ASSETSPresence of Fort Lauderdale Executive Airport providesactivation and represents a large assembled parcel (estimatedat1050acres)forredevelopmentopportunitiesparcelsabuttingFXEExplore opportunities for restaurant/diningclusters and market toward employee andhotel guest marketsDlfbat1,050acres)forredevelopmentopportunitiesLocation on Route 441/7 provides high visibility to supportstrip-type shopping center anchored by a Publix grocery storeand a number of in-line retail stores with opportunity for futureinfill developmentRETAIL RECRUITMENT STRATEGYDocument existing retailsquarefootagebycategory as baseline for future recruitmenteffortsPotential retail infill sites in/around Cypress Creek Station,particularly if older parking ratio requirements are reconsideredImprovements to the physical characteristics of the Uptown/FXEtransportation corridor wouldserve to create major retaildestinations in the sub-area and redevelopment/infill activityI95bdthEtiAi titnearI-95beyondtheExecutiveAirportsiteOPPORTUNITIES•Transportation focus of the Uptown/FXE corridor requiressubstantial infrastructure investment to transition to pedestrian-friendlyenvironment supportive ofgreater diversityof retailyppgy•Offers the largest employment base of all of the sub-areas withmore than 31,400 office workers and 12,200 non-officeemployees ($96.4 million in food and beverage salesopportunity)•ThoughUptown/FXEhasover2100hotelroomsserving•ThoughUptown/FXEhasover2,100hotelroomsservingbusiness and leisure travelers, these markets appear to beunderserved in all categories of food and beverage, appareland entertainment offerings•Infrastructure investment and visitor traffic by Schlitterbahn, anationalchainofwaterparksthatplanstobuildon64acresFORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 50nationalchainofwaterparksthatplanstobuildon64acreswithin the Fort Lauderdale Executive Airport
RETAIL DEVELOPMENT STRATEGIESTHE GALT OCEAN MILEImplement Master Plan to improve public realmspaces, enhance building/storefront appearance,sustain walkable characterProtectpresenceofgrocerystoreasconsumerSTRENGTHS/ASSETSEstablished retail/dining district provides baselinefor future marketsProtectpresenceofgrocerystoreasconsumerdestinationSustain documentation of business mix for futurerecruitment assistance443,000 Square Feet ofretail, estimated $330million per year in salesLow (4%) retail vacancy rate reinforces marketsupportContinue to market toward/capture overnightguest expenditures to balance 40% seasonalvacancy ratesBuild on base of locally owned apparel and giftdfflffRETAIL RECRUITMENT STRATEGYPhysical layout and character is pedestrian-friendly, walkableGood mix of retail/specialty, F&B and consumerservicesin200+businessesstores todifferentiate retailofferingsRETAIL RECRUITMENT STRATEGYservicesin200+businessesOPPORTUNITIES•Limited amount ofavailable retail/commercial/space indicates need to achieve critical mass ofnew development and redevelopment•Some buildings need rehabilitation/reinvestment•Seasonalitofresidentialbaseaffectsoerall•Seasonalityofresidentialbaseaffectsoverallsales patterns•Occupancy rates and concentration of localbusinesses could be displaced by higher rent-payingnationalretailtenantsFORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 51payingnationalretailtenants
RETAIL DEVELOPMENT STRATEGIESNORTH BEACH VILLAGESTRENGTHS/ASSETSExplore potential to recruit a smaller(up to 20-25,000 SF) specialty/gourmet grocery store tosupplement services for hotel and other visitors inthe areahlbldhlbkhSTRENGTHS/ASSETSMajor opportunity for planned pedestrian-friendlyretail ‘district’ on Breakers AvenueUnderserved in retail, food & beverage offersWhilebuilding onhotelguestbase, market thefuture retail/dining cluster toward area marketDevelop an overall sub-area redevelopmentmaster plan to concentrate a ‘double-loaded’lk blllBkrecruitment opportunitiesStrong concentration of hotels (2,450 rooms),beach accessAvailabledevelopmentparcelscanaddwalkableretailenvironment alongBreakersAvenue, and add appropriate density on adjoiningblocksFocus public realm improvements/capitalittBkAdBi hRdRETAIL RECRUITMENT STRATEGYAvailabledevelopmentparcelscanaddsignificant density to North BeachPotential beach access to the Bonnet HousegardensOPPORTUNITIESinvestmentsonBreakersAvenue andBirchRoadas an activated, pedestrian-oriented district –consistent with Beach CRA improvement programand the City’s overall connectivity planCidhtdi t / d titOPPORTUNITIESScale and mix of older and new buildings mayrequire design controlsDominance ofhotelguest marketprimarilyConsiderhowtocoordinate/mandate appropriatemix, placement and urban design of BreakersAvenue to realize full development potentialsgpyfocuses on one consumer groupLimited retail offerings today to serve hotelguestsFewexistingretailofferingsintargetareaFewexistingretailofferingsintargetareaShopping/dining district will require carefulplanning and development to workFORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 52
RETAIL DEVELOPMENT STRATEGIESCfllihWtdbfitDOWNTOWN REGIONAL ACTIVITY CENTER (D-RAC)CarefullyweighWave costsandbenefits,incorporate proven increase in property values tobalance decisions over long runProtect the concentration of specialty retail,galleriesanddiningalongEastLasOlasoverCENTER (DRAC)STRENGTHS/ASSETSStrong, evolving retail and dining cluster along LasOlas AvenuegalleriesanddiningalongEastLasOlasoverpast ten years – successful districtSeek additional ways to strengthen connectivitybetween employment centers, retail sub-areas,residentialneighborhoodsandculturalcentersMuseums and Cultural attractions have reinforceddestination identityOffice concentration adds daytime consumers,reinforces walkable retailresidentialneighborhoodsandculturalcentersRedevelop Riverfront Project to represent site turn-round and redevelopment, eliminate outmodedproject conceptContinuetoreinforceTODdevelopmentpoliciesRETAIL RECRUITMENT STRATEGY8,300 downtown residents provide a sustained,‘built-in’ marketEstimated $482 million in annual retail spendingby residents, workers, visitorsAl30000dlContinuetoreinforceTODdevelopmentpoliciesafter WAVE is constructed potentialsFocus retail recruitment efforts to attract new, highquality, urban format ‘big box’ and grocerychainsintegratedwithsmaller/localretaildistrictsAlmost30,000downtown employees5,000 housing units planned/under constructionOPPORTUNITIESRfPhldbdd dchainsintegratedwithsmaller/localretaildistrictsand pedestrian friendly/walkable environments tosupport current/planned downtown residentialdensity (retailers target 8,000-10,000households within 1/4 mile of location).RiverfrontProject issues shouldbeaddressedtoturn-around locationWide streets, many not as pedestrian-friendly forfuture growthMltipleacti itnodesbttoofarapartforaMultipleactivitynodes,buttoofarapartforacoherent unified walkable districtNeed to strengthen connections between activitycenters, nodes, destinationsLocallyownedbusinessesmorevulnerabletoFORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 53Locallyownedbusinessesmorevulnerabletoproperty values/rent increases
RETAIL DEVELOPMENT STRATEGIESSISTRUNK BOULEVARDSTRENGTHS/ASSETSLength ofSistrunk Boulevard suggests creation ofmultiple small retail nodes rather than one centralcommercial coreDuring redevelopment, need to plan a relocationflhdlbdfSTRENGTHS/ASSETSStrong tradition and symbolic values as African-American neighborhoodMajor public investment in streetscapestrategyforlightindustrialbusinesses to provideforinfill projects (longer term strategy)Neighborhoods west of Andrews Avenue arefunctionally underserved; focus for businessdlldimprovements upgraded appearanceVacant/underutilized land can serve interim usessuch as public gardens, open space, pop-upretail or art in public spacesdevelopment assistance, retailretention andrecruitmentMore aggressive incentive programming andpublic investments are needed to recruit and assisthlthtilktRETAIL RECRUITMENT STRATEGYSome locally owned businesses, but may needreinvestment in buildingsHigher vehicle counts will attract retail andbusinessestoareaahealthyretailmarketProvide below market rate financing forconstruction and/or fit up/inventory (i.e., DC'sGrocery Store inducement subsidy programbus essesoaeaOPPORTUNITIESLower population density challenges ability toadd retail and servicesUnderwrite job training costs for area workers toencourage local employmentAbate property taxes for first five-ten years toreduce initial financial risksImbalance between incomes and supportablenational retail chain economics required for newconstructionLength of Sistrunk Boulevard makes it difficult toConsider low cost ground lease of City-ownedproperty to reduce capital investment requirementsProvide site improvements and infrastructure atlow/nocosttodeveloperconcentrate a ‘center’Limited near-term retailexpansion potentials dueto limited market sizeFORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 54low/nocosttodeveloper
RETAIL DEVELOPMENT STRATEGIESConsiderhowtomodifyandenhancepedestrianSE 17TH STREET CORRIDORSTRENGTHS/ASSETSConsiderhowtomodifyandenhancepedestrianconnectivity between hotels, retail offerings andFLL Convention CenterBetter utilize waterfront connections and visibilityWt f ttiithth17thSt tProximity of FLL Convention Center focusesmeeting-oriented marketsDevelopment pattern has provided multiple bigboxandotherretailstoresWaterfrontconnections withthe17thStreetCorridor area not fully developed, can be furtherenhancedConvention Center proximity suggests need formoreentertainmentandnightlifeoptionsboxandotherretailstoresRedevelopment potentials for light industrial usescan increase density, salesHotel concentration near Convention Center addsttilddmoreentertainmentandnightlifeoptionsConsider retail development opportunities aroundWAVE streetcar stations for local consumersRETAIL RECRUITMENT STRATEGYguestretaildemandHotel guest spending estimated at $500 millionper year, largest of all sub-areas; retail spendingalone estimated at $175 million per yearHospital District facility and related employmentgenerates daytime retail demandOPPORTUNITIESStripmalltyperetailofferingslessattractivetoStrip-malltyperetailofferingslessattractivetoconvention attendeesLowest resident population challenges longer-termretail growth opportunitiesArea is auto-oriented, less pedestrian-friendly,challenges visitor experienceFew entertainment options within sub-area forConvention Center visitorsFORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 55Limited number of redevelopment sites
ECONOMIC DEVELOPMENT STRATEGIC PLAN INITIATIVES WITH RETAIL DEVELOPMENT LINKAGESTaken together the majority of the Strategic Plan’s key initiatives are structured to support retail development in the CityofFort Lauderdale Specifically these Taken together, the majority of the Strategic Plan s key initiatives are structured to support retail development in the CityofFort Lauderdale. Specifically, these include:Design and implement an Expedited Planning Approvals Program forQualified Sustainable Development Projects.Create Revolving Loan Fund to provide much needed below-marketcapitalfornewandexpandingretailbusinessesintheCityofFortCity-Wide Placemaking Marketing& Branding Program -- promoteplacemaking events in each sub-area and create a system of urbanvillages.UrbanCultureCurationProgramPartnerwithareauniversitiesandcapitalfornewandexpandingretailbusinessesintheCityofFortLauderdale.Sponsor the Economic Gardening Pilot Program to assist second statecompanies achieve the optimal scalability of their business (transitioning afood truck to a bricks and mortar restaurant).EtblihBiIbtthildildthltdUrbanCultureCurationProgram–Partnerwithareauniversitiesandother philanthropic and educational institutions to implement acutting-edge urban culture curation program that will feed into theplacemaking marketing and branding campaign.Conduct a sub-area level parking assessment to test the demandand financial feasibility of municipally-owned parking garages toRETAIL RECRUITMENT STRATEGYEstablishaBusinessIncubator –thiscouldincludetechnology, artsandculinary businesses in Fort Lauderdale – all companies that would serve tocreate a sense of place and support more foot traffic for area retailers.Establish a Retail Recruitment Program – a dedicated retail recruitmentmanager will conduct a detailed retail inventory by sub-area and focus onretention/expansionefforts.support targeted redevelopment opportunities.Expedited Planning Approvals for Sustainable Development Projects Economc PerformanceCreate a Revolving Loan Fund Economc PerformanceEstablish a Business IncubatorWorkforceee o /epa soeosEstablish a Business Incubator WorkforceKauffman Foundation - FastTrac ProgramInnovationKauffman Foundation - 1 Million Cups ProgramInnovationAdvocacy for Expansion of Wave StreetcarLivabilityUrban Culture Curation ProgramLivabilityCitywide Marketing/Branding Campaign Healthy Business EnvironmentTargeted Sub-Area Retail Recruitment ProgramHealthy Business EnvironmentSub-Area Level Parking Assessment Healthy Business EnvironmentFORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 56lgly
VI. Targeted Industry & Entrepreneurial Development StrategyFORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN57
TARGETED INDUSTRY AND ENTREPRENEURIAL DEVELOPMENT STRATEGY“For each newDEVELOPMENT STRATEGYThe results of the Economic Benchmarking assessment indicate that critical aspects of the City’s economiclandscape are lagging behind peer cities. These include livability (primarily due to the city’s high povertyrate, relative cost of living and housing affordability) and business environment (resulting from the relativecost of doing business in the City when compared toother locations in the western and southeasternUnited States).For each new high-tech job in a metropolitan fi)The Economic Development Strategic Action Plan (EDSAP) is purposefully structured to address theseparticular challenges to Fort Lauderdale’s healthy economy with recommendations for expanding the City’sworkforce development and small business development assistance offerings.The basis of the EDSAP’s Targeted Industry and Entrepreneurial Development Strategy is founded uponinvestment in cutting edge business accelerator and innovation district programs that will requireil ibbliiiilldildiii lkhldThildarea, five additional local jobs are createdimplementationbypublic, private, civic, cultural,educationalandinstitutionalstakeholders.Theseinclude:Establish a Business Incubation/Accelerator Program (Supported By Economic Development Marketingand Branding Functions and focused on promoting the further development of Technology InnovationDistricts in Fort Lauderdale)Sponsor an Economic Gardening Pilot ProgramSthKffFdtiFtT&1MilliCPjobs are created outside of high tech in the long ”SponsortheKauffmanFoundationFastTrac&1MillionCupsProgramsCo-sponsor a Soft Skills Training ProgramThe rationale and examples of models from other communities is provided in the following discussion andin the case studies in Appendix B of this strategy.TechnologyInnovationDistrictModelsrun”–Economist Enrico Morettiin The TechnologyInnovationDistrictModelsAccording to the Brookings Institution, the geography of innovation is shifting from the large scalemanufacturing districts of the 19th century. Twenty years ago, workers needed to drive to a secluded officepark, work in isolation, and keep ideas secret. Today proximity is everything.Workers want to be in urban places that are walkable and bikeable where they can bump into otherkdhidFilttbltthfihlbdiitith tNew Geography of Jobsworkers andshareideas.Firms also wanttobeclosetootherfirms, researchlabsanduniversities sothatin collaborative spaces smart ideas can be turned into smart products for the market.Innovation Districts are this century’s productive geography – creating competitive places and cool spaceswhere firms want to be closer to other firms.An Innovation District is a geographic area where anchor institutions and companies cluster and connectFORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 58with small firms, start-ups, business incubators and accelerators. Physically compact, transit-accessible,and technically wired, they offer mixed-use housing, office and retail.
Key demographic trends are profoundlyalteringhowfirmsandpeopleinteracthowTECHNOLOGY INNOVATION DISTRICT MODELSalteringhowfirmsandpeopleinteract,howideas flow, and how places are designed andbuilt.Fort Lauderdale has the opportunity toleverage the distinct economic strengths withinzonesdistrictsorneighborhoodstosupportAccording to the Brookings Institution, the emergence of “Technology Innovation Districts”1reflectsprofound changes within traditional market dynamicsthat are radically altering where businesses want tolocate and people want to live. Open, innovative economy craves proximity and integration so ideas andknowledge can be transferred quickly and effectively.Globalcompaniesandfinancialinstitutionstendtoco-locateinthemInnovationDistrictsarezones,districtsorneighborhoodstosupportkey target industries:Advanced Materials & Hi-TechManufacturingAlternative Energy & Renewable ResourcesGlobalcompaniesandfinancialinstitutionstendtocolocateinthem.InnovationDistrictsareentrepreneurial, inclusive and sustainable – once an Innovation District takes root in a community, theytend to contribute to a much stronger and resilient economy going forward.In the United States, districts are emerging near anchor institutions in the downtowns and midtowns ofcities like Atlanta, Baltimore, Buffalo, Cambridge, Cleveland, Detroit, Houston, Philadelphia, Pittsburgh,St. Louis and San Diego.Aviation/AerospaceGlobal Business ServicesCorporate HeadquartersHuman Resources Development & HigherEducationSuccessful examples of Innovation Districts that are leveraging existing educational and institutionalinfrastructure are the University of Virginia, Research Triangle Park, and the Massachusetts Institute ofTechnology. They are developing in Boston, Brooklyn, Chicago, Portland, Providence, San Francisco andSeattle where underutilized areas (particularly older industrial areas) are being re-imagined and remade.Others are locatingin the transformation of traditional exurban scienceparks like Research Triangle ParkEducationInternational Media & ProductionInternational Trade & LogisticsLife SciencesMarine Industrygpgin Raleigh-Durham, which are fighting to compete with the preference of their workers and firms for moreurbanized, vibrant environments.Workers are demanding urban, walkable neighborhoods because household dynamics are changing –less than 20% of households are baby boomers, seeking smaller homes with easier access to job sites,health and amenities. The Millennial generation (essentially 18 to 34 year olds) is choosing cities atbt tiltdtthltihlfl tibdlifitiiFor example recent expansion by FortLauderdale-based companies such as Citrix,Prolexic Technologies and Anthem Educationin the Uptown/Cypress Creek area signals theemergence of a local Technology Innovationsubstantialrates comparedtothepopulation as a whole–reflecting abroadrevaluing ofcities as anin-migration destination.In Fort Lauderdale, technology innovation districts are emerging in:DowntownFlaglerArts&Technology(FAT)VillageDistrict with substantial investment underwayoutside of the traditional downtown location.The City of Fort Lauderdale is dedicatingresources to nurture an environment thatincrease the number of sustainable high techFlaglerArts&Technology(FAT)VillageUptown/Cypress CreekThese emerging tech ecosystems will benefit from Fort Lauderdale’s investment in business acceleratorassistance, low cost space, training programs, entrepreneurial development networking activities, andsustained economic development marketing and branding dedicated to solidifying each distinct zone’sfldttiland information and communicationtechnology start-ups.FORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 59sense ofplace andpotential.1Brookings Institute, The Rise of Innovation Districts – A New Geography of Innovation in America, Bruce Katz and Julie Wagner, 2014.
The City of Fort Lauderdale is focused on supportingtilbidl tti itfBUSINESS INCUBATION/ECONOMIC GARDENING entrepreneurialbusinessdevelopmentactivityforsmall- to medium-sized businesses in a range ofsectors – Technology, Arts, Marine, Retail, Dining andEntertainment.It is recommended that the City of Fort LauderdaleMentors/Speakers/MODELestablish new business accelerator program designedto implement a proven model for supporting scalablesecond stage companies by substantially lowering therisks associated with launching a company. Thisprogram would be implemented by a contractmanager. Key resources include:Entrepreneurs/Teams(admissionsSpeakers(real-worldperspective)ProfessionalServicesPartners(legal/finance/Office space, internet hosting and toolsHands-on MentoringAccess to seed and venture capitalThe differentiator from traditional corporate officehotelingspaceisfocusedonacceleratingexistingTechnologyscreening)(legal/finance/IT/HR)hotelingspaceisfocusedonacceleratingexistingtechnologies by recruiting and training teams ofexperienced professionals.Beyond being an accelerator, the Fort LauderdaleBusiness Accelerator plans to be a workforce trainingprogram and a talent recruitment program for localTechnology Commercialization and Career Accelerator(self sustaining)Staff, Facility &ManagementPlatform(hub/tools)Access toCapital(pitch day)industries, drawing largely from Florida’s WorkforceSystem as a source for candidates.Other metros that invest in such economic gardeningprograms see sizable increases in tax revenue,employment, multiplier effects within the economy,innovationandoveralleconomicdiversityCollaborativeCommunity/PartnersTechnologies/Ideas(corporate/innovation,andoveralleconomicdiversity.Connections with strategic partners, both professionaland academic, are critical to the success of such aprogram, which is firmly established here throughFlorida’s Workforce System and other industrypartnerships.Training/Launch Methodologies(best practices)(growingecosystem)(copoae/university)FORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 60pp
SMART GROWTH SUSTAINABLEEXPEDITED PLANNING APPROVALS SMART GROWTH SUSTAINABLE DEVELOPMENT PRINCIPLESIncrease utilization efficiency of water and energy resourcesPreserveandcreateopenspacePROGRAM To further identify Fort Lauderdale as a healthy businessenvironment for retailers targeting unique urban villagesin theirsite selection criteria,it is recommended that thePreserveandcreateopenspaceCreate distinctive buildings in neighborhood villages with astrong sense of placePromote mixed land uses serviced by a variety oftransportation modes,City design and implement an expedited planningapprovals program for development applicationsintegrating best practices in ‘Smart Growth’ principles.This program will require the hire of a dedicatedEddPl&DlCWkpMake development decisions more predictable, quicker andcost effectiveCreate walkable sites, neighborhoods and communitydesignsExpeditedPlanning&DevelopmentCaseWorker.The City of Fort Lauderdale is promoting Smart Growthprinciples in all aspects of community planning andeconomic development.Encourage community and stakeholder collaborationPromote regional collaborationStrengthen and direct development towards existingcommunitiescommunitiesTake advantage of compact building designFORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 61
VII. Alternative Incentives RecommendationsFORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN62
ALTERNATIVE INCENTIVESBUSINESS & DEVELOPMENT ALTERNATIVE INCENTIVESIEDC Economic Development Research Partners released a white paper “More than Money – Alternative Incentives that Benefit Companies and Communities” in March 2014 evaluating different types of alternative incentives used by Economic Development INCENTIVES RECOMMENDATIONSThe City of Fort Lauderdale offers an array of business incentives to attract and retain Qualified Target Industry businesses such as ypypOrganizations (EDOs) and advocates for their increased use either alone or in conjunction with financial incentives. This research shows that alternative incentives can be an effective strategy for business attraction. The study concludes:Most of commonly used alternative incentives are considered businesses such as. Advanced Materials & Hi-Tech ManufacturingAlternative Energy & Renewable ResourcesAviation/AerospaceGlobal Business ServicesMost of commonly used alternative incentives are considered “typical economic development practice”Alternative incentives can be effectively used, though they are more commonly used in conjunction with other financial incentivesOrganizational type and structure don’t impact the types of vcCorporate HeadquartersHuman Resources Development & Higher EducationInternational Media & ProductionInternational Trade & LogisticsOrganizational type and structure don t impact the types of alternative incentives usedIncentives is a “local” game – with relative value determined by market conditionsThe EDSAP’s implementation tactics are consistent with the IEDC’s k d f l ldLife SciencesMarine IndustryAccording to the International Economic Development Council (IEDC), these incentives are competitive – and typical. These incentives include tax refunds and direct key recommendations for alternative incentives, including:Research and dataReal estate site selection and expedited permitting assistanceTalent/workforce developmentNetworking/promotiontypical. These incentives include tax refunds and direct cash benefits . For qualified businesses located in an Enterprise Zone, expanded tax incentives are offered (credits, refunds and energy exemptions).The EDSAP expands the incentives to provide benefits attractive to broader Citywide new business development Networking/promotionInfrastructure investmentThe following overview of alternative incentives recommended by IEDC supports the rationale for the EDSAP’s key recommended implementation tactics. a ac ve o b oade C yw de ew bus ess deve op e for entrepreneurs, retailers and other high-value targets in the form of “alternative incentives” that are structured to go beyond tax refunds and other cash benefits. These incentives are detailed in the following section.FORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 63
EXAMPLES OF THE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN’SALTERNATIVE DEVELOPMENT INCENTIVESThe Economic Development Strategic Action Plan implementation tactics represent cutting edge business and development incentives. These recommended “alternative Research and DataBuilt on economic gardening principles, communities can offer specialized data incentives”1programs are intended to complement Fort Lauderdale’s existing financial and tax incentives while also enabling the city to take economic growth and prosperity to the next level of competitiveness on a national scale.Talent / Workforce DevelopmentAccess to skilled and talented workers is considered the number one criteria for site ggpp,panalysis services to businesses. Such services are especially valuable to those that lack the in-house capacity to conduct sophisticated analysis or otherwise cannot access specialized datasets. Also included in this category is access to community-level information, both through an economic development agency website as well as connections to current employers who can offer insights into the quality of the business environment.Access to skilled and talented workers is considered the number one criteria for site selection decisions today, irrespective of the industry. Businesses also need to make sure that they have access to training programs so that their workers can keep up with the pace of innovation and technological change. Labor market analysis, ability to offer customized job training, and connections to local training programs are some alternative incentives that communities can offer that also meet important business needs.Key Tactics:Retail Recruitment Management*Networking and PromotionHelping incoming businesses make connections in the community is as much about customer service as it is about developing and strengthening existing lt d l l l hi th h bitbi ti Thi eedsKey Tactics:Business AcceleratorSoft Skills Training ProgramEconomic Gardening Pilot ProgramReal Estate and Permittingclusters and local supply chains through business-to-business connections. This category also includes services such as assistance with spouse relocation, access to cluster partnerships and peer mentoring.Key Tactics:Economic Development Marketing & BrandingUrban Culture Curation*Kauffman Foundation 1 000 Cups & Fast TracProgramsReal Estate and PermittingStreamlining a community’s planning and permitting processes is more than a question of convenience for the businesses. Prolonged processing increases the cost of development and decreases businesses’ ability to respond to rapidly changing market realities. Communities can also offer other types of real estate services, such as lists and data on available buildings, assistance with feasibility studies and more.The City of Fort Lauderdale is installing the latest technology in building plan review software Kauffman Foundation 1,000 Cups & Fast TracProgramsInfrastructure ImprovementsAs the price of energy increases and a product’s speed to market becomes more important, a community’s ability to connect efficiently with global transportation and logistics systems determines its competitiveness. This Lauderdale is installing the latest technology in building plan review software (OneSolution Electronic Plan Review Software) and is expected to be operational by FY2015.Key Tactics:Dedicated Planning & Building Case Workercategory also includes less expensive infrastructure improvements such as signage and streetscape upgrades, among others.Key Tactics:Advocate for Wave ExpansionEconomic Development Marketing & Branding (Wayfinding/Signage)FORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 641IEDC Economic Development Research Partners released a white paper “More than Money – Alternative Incentives that Benefit Companies and Communities” in March 2014* Proposed as Contract Services
VIII. Implementation Plan RecommendationsFORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN65
ORGANIZATIONAL & INSTITUTIONALIMPLEMENTATION COSTSORGANIZATIONAL & INSTITUTIONAL ASSESSMENTThe International Economic Development Council hasestablished industry standards for managing economicdevelopmentorganizationsthatincludeinstitutionalandThe City of Fort Lauderdale’s current Economic& Community Reinvestment Departmentcurrently includes 8 full-time equivalent (‘FTE’)staff.developmentorganizationsthatincludeinstitutionalandorganizational benchmarks for cities and counties based onpopulation size.As part of the Economic Development Strategic Action Plan(ESDAP)process,theCityofFortLauderdale’scurrentThe proposed EDSAP Implementation Planrecommends that the City of Fort Lauderdalehire an additional 2 FTEs and fund contractlabor positions and total capital and operatingexpenses of $7.2 million over a five-year period(ESDAP)process,theCityofFortLauderdale scurrentorganizational and institutional structure was evaluated tounderstand current staff structures, roles, responsibilities andfinancial resources.Based on this review, the City of Fort Lauderdale’s currentincluding:Personnel: $922,000Capital Costs: $3.37 millionOperating Costs: $2.88 millionEconomic Development Division’s staffing ratio per1,000residents is 0.006 (including residents, daytime employmentinflow and tourists); the average across the four cohort citiesranking higher than Fort Lauderdale in the economic dashboardbenchmarking is 0.010 – indicating a potential shortfall in staffth thldbltdtti lOperating Costs: $2.88 millionresourcesthatshouldbeevaluatedtoensureoptimalcompetitiveness.It is recommended that the City of Fort Lauderdale investadditional resources to hire key staff or fund the contract laborfunctions required to fullyimplement the EDSAP. The additionalqypstaffing may be achieved through a combination of reallocationof existing open positions and the creation of new staff positions.Following is an overview of the Economic Development Division’scurrent and proposed organizational structure anddtiftffdttlbtrecommendationsfornew staffandcontractlaborsupportrequired to implement the Plan.FORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 66
SUMMARY ECONOMIC DEVELOPMENT STRATEGIC ACTION PLANCITY OF FORT LAUDERDALE ECONOMIC & COMMUNITY REINVESTMENT ORGANIZATIONAL & INSTITUTIONAL ASSESSMENTCURRENT STAFFING & MANAGEMENT STRUCTURE (FY2014)ECONOMIC & COMMUNITY REINVESTMENT MANAGEMENT/DIRECTORClerk IIIMANAGEMENT/DIRECTOREconomic & Business Development Administrator/Beach CRA MBusiness Assistance CoordinatorEngineering Design Manager (Beach CRA)ManagerPlanner IIICRA Project Coordinator/ Economic Business Development AssistantLegend –FY2014 Staffing: 11 FTEsExisting Positions9 FTEsEngineering DesignEconomic Development RepresentativeVACANTVacant/Hiring in ProcessNote: Assumes Full-Time Equivalent (FTE) Positions working 2,080 Hours annuallyClerk II2 FTEsSecretary IIIEngineering Design Manager (NPF CRA)VACANTFORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 67
SUMMARY ECONOMIC DEVELOPMENT STRATEGIC ACTION PLANSUMMARY ECONOMIC DEVELOPMENT STRATEGIC ACTION PLANCITY OF FORT LAUDERDALE ECONOMIC & COMMUNITY REINVESTMENT ORGANIZATIONAL & INSTITUTIONAL ASSESSMENTFUTURE STAFFING & MANAGEMENT STRUCTURE (FY 2015)ECONOMIC & COMMUNITYCLERK IIIECONOMIC & COMMUNITY REINVESTMENT MANAGEMENT/DIRECTOREconomic & Business Development Administrator/Beach CRA ManagerEconomic & Small Business Development Administrator(RECLASSIFIED)Business Assistance CoordinatorCRA Project Coordinator/ Economic Business Development AssistantEconomic Development Aide(RECLASSIFIED)Financial Analyst(NEW POSITION)Planner IIISecretary IIIClerk IILegend – CURRENT (FY2015) Staffing: 11 FTEs9 FTEs2 FTEsExisting PositionsReclassified PositionsNew PositionsNote: Assumes Full-Time Equivalent (FTE) Positions working 2,080 8 FTEs1 FTE2 FTEsFORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 68Hours annually)
SUMMARY ECONOMIC DEVELOPMENT STRATEGIC ACTION PLANORGANIZATIONAL & INSTITUTIONAL ASSESSMENTFUTURE CITY OF FORT LAUDERDALE ECONOMIC & COMMUNITY REINVESTMENT STAFFING & MANAGEMENT STRUCTURE: PLAN YEAR 5CLERK IIIECONOMIC & COMMUNITY REINVESTMENT MANAGEMENT/DIRECTOREconomic & BusinessEconomic & SmallMANAGEMENT/DIRECTORRetail Recruitment Manager(Contract)Rd l tEconomic & Business Development AdministratorEconomic & Small Business Development Administrator (Reclassified)Marketing Manager(Contract)Planning &RedevelopmentAdministrator(New Position)Planning & Building Case Worker(Contract)Urban CultureCRA Project Coordinator/ Economic Business Development AssistantEconomic and Business Development Assistant (New Position)Economic Development Aide (Reclassified)Planner IIIFinancial Analyst(Reclassified)Business Assistance CoordinatorUrban Culture Curator(Contract)Legend – FUTURE (5-Year) Staffing: 15 FTEsExisting Positions11 FTEsSecretary IIIClerk IIgNew PositionsContract PositionsNote: Assumes Full-Time Equivalent (FTE) Positions working 2,080 Hours annually) including 4 contract positions4 FTEs2 FTEsFORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 69
SUMMARY ECONOMIC DEVELOPMENT STRATEGIC ACTION PLANSUMMARY ECONOMIC DEVELOPMENT STRATEGIC ACTION PLANIMPLEMENTATION TACTICS & FINANCING PLANTo fully execute the Economic Development Strategic Action Plan tactics, the City ofFort Lauderdale must invest in new personnel, capital and operating expenses.Based on order-of-magnitude estimates for the proposed new resources, the totalcost of the plan is approximately $7.2 million over five years.Fort Lauderdale Economic Development Strategic Action Plan 2014-2019TOTAL 5-YEAR COSTTOTAL ESTIMATED COSTFTEsYear 1Year 2Year 3Year 4Year 5COSTTOTAL ESTIMATED COSTFTEsYear 1Year 2Year 3Year 4Year 5PersonnelRedevelopment Administrator1$ 135,000 $ 136,350 $137,714 $139,091 $ 548,154 Economic & Business Development Assistant1$ 92,000 $ 92,920 $ 93,849 $ 94,788 $ 373,557 CilLicense fees, facility costs, seed capital, $ 590 000 $2 600 000 $ 60 000 $ 60 000 $ 60 000 $3 370 000 CapitalLicense fees, facility costs, seed capital, placemaking improvements$ 590,000 $2,600,000 $ 60,000 $ 60,000 $ 60,000 $3,370,000 OperatingOperating expenses (print, web, social media, event planning, initiative managers/coordinators - contract labor)$ 12,000 $ 810,950 $ 800,450 $635,450 $625,450 $2,884,300 Total2$ 602,000 $3,637,950 $1,089,720 $927,013 $919,328 $7,176,011 FORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 70
SUMMARY ECONOMIC DEVELOPMENT STRATEGIC ACTION PLANSUMMARY ECONOMIC DEVELOPMENT STRATEGIC ACTION PLANIMPLEMENTATION TACTICS & FINANCING PLANEconomic Performance InitiativesEstimated Annual CostTOTAL 5-Economic 1:Establish a Revolving Loan Fund Targeted for Retail/Entrepreneurial TOTAL 5-YEAR COSTg/pDevelopment ActivityFTEs Year 1 Year 2 Year 3 Year 4 Year 5PersonnelN/A0$0 $0 $0 $0 $0 $0CapitalSeed Funding /Fund Administrator Fee$500,000 $1,500,000 $0 $0 $0 $2,000,000 OperatingN/A$0 $0 $0 $0 $0 $0Implement an Expedited Planning Economic 2:Approvals Program for Qualified Sustainable Development ProjectsPersonnelN/A0$0 $0 $0 $0 $0 $0CapitalN/A$0 $0 $0 $0 $0 $0OperatingContract labor (Planning & Building C Wk M )$0$0$0$0$95,000 $95,000 OperatingCase Worker Manager)$0$0$0$0$95,000 $95,000 Economic 3:Design and Implement a QTI Lead Capture Management SystemPersonnelN/A (Economic Development Program Manager reclassified position)0$0 $0 $0 $0 $0 $0Sales Force or Other Software License CapitalSales Force or Other Software License Fee$0 $10,000 $10,000 $10,000 $10,000 $40,000OperatingN/A$0 $0 $0 $0 $0 $0TOTAL ESTIMATED COSTPersonnel0Capital$500 000 $1 510 000 $10 000 $10 000 $10 000 $2 040 000 Capital$500,000 $1,510,000 $10,000 $10,000 $10,000 $2,040,000 Operating$95,000 $95,000 Total$500,000 $1,510,000 $10,000 $10,000 $105,000 $2,135,000 FORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 71
SUMMARY ECONOMIC DEVELOPMENT STRATEGIC ACTION PLANSUMMARY ECONOMIC DEVELOPMENT STRATEGIC ACTION PLANIMPLEMENTATION TACTICS & FINANCING PLANWorkforce InitiativesEstimated Annual CostTOTAL 5-YEAR COSTWorkforce 1:Sponsor an Economic Gardening Pilot ProgramFTEs Year 1 Year 2 Year 3 Year 4 Year 5PersonnelN/A (Coordinated by DSD Staff)0$0 $0 $0 $0 $0 $0 CitlN/A$0 $0 $0 $0 $0 $0 CapitalN/A$0 $0 $0 $0 $0 $0 OperatingEdward Lowe Foundation Econ Gardening Certification & Pilot Project Fees$0 $26,950 $21,450 $21,450 $21,450 $91,300 Workforce 2:Sponsor Soft skills Training Program Targeting Qualified Workforce 2:Program Targeting Qualified Target IndustriesPersonnelN/A (Coordinated by DSD Staff)0$0 $0 $0 $0 $0 $0 CapitalN/A$0 $0 $0 $0 $0 $0 OperatingTraining Fees ($30K/quarter x 4)$0 $120,000 $120,000 $120,000 $120,000 $480,000 TOTAL ESTIMATED COSTPersonnel0$0 $0 $0 $0 $0 $0 Capital$0 $0 $0 $0 $0 $0 Operating$0 $146,950 $141,450 $141,450 $141,450 $571,300 Total$0 $146,950 $141,450 $141,450 $141,450 $571,300 FORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 72
SUMMARY ECONOMIC DEVELOPMENT STRATEGIC ACTION PLANIMPLEMENTATION TACTICS & FINANCING PLANIMPLEMENTATION TACTICS & FINANCING PLANInnovation InitiativesEstimated Annual CostTOTAL 5-YEAR COSTInnovation 1:Design, Implement & Sponsor a Business Accelerator ProgramFTEsYear 1 Year 2 Year 3 Year 4 Year 5PersonnelN/A0$0 $0 $0 $0 $0 $0 /CapitalFacility renovation costs (Sistrunk Sub Area)$1,000,000 $0 $0 $0 $1,000,000 OperatingOperating expenses (contract labor, office space, equipment, supplies, marketing, etc.) /3$465,000 $360,000 $255,000 $150,000 $1,230,000 Innovation 2:Sponsor the Kauffman Foundation FastTrac Program in Fort LauderdalePersonnelN/A (Coordinated by DSD Staff)0$0 $0 $0 $0 $0 $0 CapitalKauffman Foundation License Fees$50,000 $0 $0 $0 $0 $50,000 Kff F dti P OperatingKauffman Foundation Program Materials$0 $12,000 $12,000 $12,000 $12,000 $48,000 Innovation 3:Sponsor the Kauffman 1 Million Cups Pilot Program in Fort LauderdalePersonnelN/A (Trained Staff Facilitators)0$0 $0 $0 $0 $0 $0 PersonnelN/A (Trained Staff Facilitators)0$0 $0 $0 $0 $0 $0 CapitalN/A$0 $0 $0 $0 $0 $0 OperatingEducation materials, AV equipment, Meeting Venue Rental, F&B ($1k/Mo x 12 mo's)$12,000 $12,000 $12,000 $12,000 $12,000 $60,000 TOTAL ESTIMATED COSTPersonnel0$0 $0 $0 $0 $0 $0 Capital$50,000 $1,000,000 $0 $0 $0 $1,050,000 Operating$12,000 $489,000 $384,000 $279,000 $174,000 $1,338,000 Total$62,000 $1,489,000 $384,000 $279,000 $174,000 $2,388,000 FORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 73
SUMMARY ECONOMIC DEVELOPMENT STRATEGIC ACTION PLANIMPLEMENTATION TACTICS & FINANCING PLANLivability InitiativesEstimated Annual CostTOTAL 5-YEAR COSTLivability 1:Advocate for Wave Expansion to Connect Downtown Fort Lauderdale to the Beach and to the AirportFTEsYear 1Year 2Year 3Year 4Year 5YEAR COSTe eac a d o e poFTEsYear 1Year 2Year 3Year 4Year 5PersonnelN/A (Coordinated by DSD Staff)0$0 $0 $0 $0 $0 $0 CapitalFeasibility studies (Department of Transportation & Mobility)$0 $0 $0 $0 $0 $0 OperatingN/A$0 $0 $0 $0 $0 $0 Livability 2:Design, Implement & Manage an Urban Culture Curation ProgramPersonnelN/A0$0 $0 $0 $0 $0 $0 CapitalN/A$0 $0 $0 $0 $0 $0 OperatingUrban Culture Curation contracts services (Note: Marketing, Branding, Programming Funded by Economic Development Communications )$0 $0 $100,000 $100,000 $100,000 $300,000 Program)TOTAL ESTIMATED COSTPersonnel0$0 $0 $0 $0 $0 $0 Capital$0 $0 $0 $0 $0 $0 Operating$0 $0 100,000 100,000 100,000 300,000 pgTotal$0 $0 100,000 100,000 100,000 300,000 FORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 74
SUMMARY ECONOMIC DEVELOPMENT STRATEGIC ACTION PLANIMPLEMENTATION TACTICS & FINANCING PLANIMPLEMENTATION TACTICS & FINANCING PLANHealthy Business Environment InitiativesEstimated Annual CostTOTAL 5-YEAR COSTBusiness 1:Design, Implement & Manage a Citywide Placemaking Marketing/Branding CampaignFTEsYear 1Year 2Year 3Year 4Year 5COSTMarketing/Branding CampaignFTEsYear 1Year 2Year 3Year 4Year 5PersonnelN/A (Coordinated by DSD Staff)0$0 $0 $0 $0 $0 $0 CapitalPlacemaking Improvements (communications strategy, web design, signage, wayfinding )$0 $50,000 $50,000 $50,000 $50,000 $200,000 Operating expenses (consulting fees, OperatingOperating expenses (consulting fees, print, web, social media, event planning)$0 $75,000 $75,000 $75,000 $75,000 $300,000 Business 2:Design, Implement & Manage a Retail Recruitment Program PersonnelN/A0$0 $0 $0 $0 $0 $0 CapitalN/A$0 $0 $0 $0 $0 $0 OperatingOperating expenses (ESRI, Moody's Economy.Com, COSTAR Data, retail consultant fees, Buxton, CBRE, etc.)$0 $100,000 $100,000 $40,000 $40,000 $280,000 Business 3:Conduct a Sub-Area Level Parking A Business 3:Assessment PersonnelN/A0$0 $0 $0 $0 $0 $0 CapitalParking Study Consulting Fees$40,000 $40,000 $0 $0 $0 $80,000 OperatingN/A$0 $0 $0 $0 $0 $0 TOTAL ESTIMATED COSTPl0$0 $0 $0 $0 $0 $0 Personnel0$0 $0 $0 $0 $0 $0 Capital$40,000 $90,000 $50,000 $50,000 $50,000 $280,000 Operating$0 $175,000 $175,000 $115,000 $115,000 $580,000 Total$40,000 $265,000 $225,000 $165,000 $165,000 $860,000 1/ City of Fort Lauderdale personnel costs assume base wage plus fringe benefits factor =35%FORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 751/ City of Fort Lauderdale personnel costs assume base wage plus fringe benefits factor 35%2/ Annual average merit-based personnel wage adjustments =1%
IMPLEMENTATION PLAN – FUNDING SOURCES & ELIGIBILITY REQUIREMENTSWhatpublicprivatecivicandinstitutionalWhatpublic,private,civicandinstitutionalfunding resource are available to implementthe plan?Proposed funding sources include General Fund, CRA, CDBG, BusinessImprovement Districts, Federalgrants, and Broward County.ABroward Countydfbkpgypreliminary assessment of funding requirements and availabilityprovides a high-level test of the feasibility of securing the financialresources required to fully implement the plan within the next five years.City of Fort Lauderdale General FundGeneral Fund resources are constrained and implementation of theBrowardCounty government returns a portion oftax revenuesbacktothe City of Fort Lauderdale for programs such as the BeachRenourishment Program. The City of Fort Lauderdale should exploreidentifying supplemental sources of funding for strategic enhancementsthat will benefit the regional economy.BusinessImprovementDistrict(BID)plan will require a long-term, focused advocacy effort by theDepartment of Sustainable Development and other stakeholders.However, the opportunity for a positive return on public investment isclearly there – with effective civic leadership, accountability measuresand a strong economy to build upon.CommunityRedevelopmentArea(CRA)BusinessImprovementDistrict(BID)The Beach Business Improvement District (BID) is the only such specialassessment district operating in the City of Fort Lauderdale. Anadditional BID is proposed for the Uptown sub-area. Such districtswould benefit directly from initiatives related to retail recruitment,placemakingurbanculturecurationandeconomicCommunityRedevelopmentArea(CRA)Community Redevelopment Area funding is earmarked for a number ofspecific initiatives recommended by the plan (i.e., placemakinginvestments like wayfinding signage, streetscape improvements, retailincentives and other small business initiatives.CommunityDevelopmentBlockGrant(CDBG)placemaking,urbanculturecuration,andeconomicdevelopment/marketing and branding. It is also recommended thatthe City explore expanding the existing Beach BID and/or creatingadditional BIDs to generate funding for implementation of targetedESDAP initiatives as determined by the BID(s)’ Board of Directors.LocalFinancialInstitutionsCommunityDevelopmentBlockGrant(CDBG)The City of Fort Lauderdale currently is administering $1.5 million inCDBG programs within the City. This program could be expanded fivetimes by utilizing the HUD 108 Loan Guarantee Program to create low-to moderate-income jobs and finance construction.FederalGrantsLocalFinancialInstitutionsThe City of Fort Lauderdale benefits from a strong partnership withlocal financial institutions actively engaged as EDSAP stakeholders.The implementation of a revolving loan fund program will requireparticipation by local banks to meet the $500,000 EconomicDevelopmentAdministration(EDA)seedfundingrequirementtobeFederalGrantsThe City of Fort Lauderdale is currently implementing a $28 millionfederal TIGER Grant indicating a high capacity for federal grant writingand advocacy. Other federal resources to consider are: U.S.Endowment for the Arts Our Town grant program for urban culturecuration, Wells Fargo/National Fish & Wildlife AdministrationDevelopmentAdministration(EDA)seedfundingrequirementtobeleveraged by public funds upon approval by a City Council vote toestablish the fund. Once approved, DSD will be responsible fordeveloping program guidelines and managing outreach throughoutthe life of the program.FORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 76conservation grants, and the Small Business Administration’s seedcapital program for revolving loan funding.
IX. Next StepsFORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN77
IMPLEMENTATION PLANNEXT STEPSMessage from the Mayor1. Department of Sustainable Development willpropose the EDSAP to be adopted as a PolicyIMPLEMENTATION PLAN –NEXT STEPSMessage from the MayorThe outstanding recognition and economicperformance indicated by the trends highlightedResolution by the City Commission (consistent withits designation as a priority in the AnnualPress PlayAction Plan).2. Funding sources will be subject to annual budgetin this strategic action plan affirms that ourstrategic planning, infrastructure enhancementsand community investments are paying off.Italsoremindsusthatourgreatestaccomplishmentsareachievedcollectivelyasaappropriation each year.3. City Commission will serve as the stewards of theplan citywide.4.DepartmentofSustainableDevelopmentwillserveaccomplishmentsareachievedcollectivelyasaunified City.Again, we are proud of the successes of ourpast, enthusiastic about our present andenergizedbythepossibilitiesofourfuture4.DepartmentofSustainableDevelopmentwillserveas the implementers of the plan – hiring requiredstaff and contractors to manage the proposedeconomic development programs and associatedcity resources.energizedbythepossibilitiesofourfuture.This Economic Strategic Action Plan is a truereflection of the great things our City has to offer.I am committed to continuing the work that hasbeenstartedthatwillonlymaketheCityofFort5. Accountability for implementation initiatives will bemonitored by updating the economic benchmarkingdashboard annually by DSD staff and consultants(FY2015-FY2018).beenstartedthatwillonlymaketheCityofFortLauderdale a better place to live, work and play.Mayor John P. “Jack” SeilerC f F Lddl6. The EDSAP implementation initiatives will bemodified to respond to market conditions andavailability of public resources.City of Fort LauderdaleOctober 2014FORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 78
Appendix A – Detailed Sub-Area Demographic & EconomicArea Demographic & Economic AnalysisFORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN79
UPTOWN FORT LAUDERDALE/FXE (SURROUNDING THE EXECUTIVE (AIRPORT)DEMOGRAPHIC AND ECONOMIC PROFILEThe Uptown Fort Lauderdale/Executive Airport sub area isppcharacterized by a strong population growth of 25% between1990 and 2000. It is projected to be one of the fastestgrowing areas through 2017.The sub-area contains a diverse area with a strong HispanicpresenceHispanicsaccountfor24%ofthepopulationRETAIL RECRUITMENT STRATEGYpresence.Hispanicsaccountfor24%ofthepopulationcompared to 14.6% in the City overall.The area boasts a large prime workforce cohort and morechildren under 14 years old indicating a strong presence offamilies and relatively larger households (62% of thehouseholdsarefamilyrelatedversus47%Citywide)Therehouseholdsarefamily-relatedversus47%Citywide).Thereare an average of 2.69 persons per household versus 2.15persons for the City.There is a high rate of owner-occupied homes (60.5% versus41.8% for the City).Approximately 62.3% of the homes are valued in themoderate price range of $100,000 to $199,999 versus37.5% of homes in the City.Uptown is considered a middle income area (medianhhldif$45799$41180Cit id )RETAIL RECRUITMENT STRATEGYhouseholdincomes of$45,799versus$41,180Citywide).The area is challenged by relatively lower educationalattainment. While approximately 36.4% of adults have onlya high school degree compared to 27.6% of City adults, only20% of adults have a college degree or higher compared tofFORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 8031.1% ofadults in the City.
THE GALT OCEAN MILEDEMOGRAPHIC AND ECONOMIC PROFILEThe Galt Ocean Mile’s population peaked in 2000. Population decreasedalmost 5% between 2000 and 2010 and is expected to remain relativelyconstant through 2017.It is the least racially diverse sub-area: 95.7% of residents are Caucasian622%fCdAfAdf09%versus62.2%ofCity residents.AfricanAmerican residents accountfor0.9%of the area’s population versus 30.9% Citywide.It is also the area with the oldest population. The median age of Galt OceanMile’s residents is 67 years old versus 42.5 years for the City. Approximately74.5% of the sub-area is 55 years or older versus 30.3% for the City.RETAIL RECRUITMENT STRATEGYThe sub-area represents a relatively lower percentage of family households(38% versus 47% for the City). This area also has one of the smallest averagehousehold sizes (1.55 persons per household versus 2.15 for the City).Theareaboastsrelativelyhighhomepriceswith49.6%ofhomesvaluedabove$200,000comparedtolessthan38%fortheCityaswhole.above$200,000comparedtolessthan38%fortheCityaswhole.The residential market is robust with the lowest vacancy rate in the City: 2%versus 7.6% Citywide (excluding seasonal use homes). However, support forarea retail may be challenged by a high percentage of seasonal homes:37.8% are homes for seasonal use versus 9.9% of all City homes.hllhhhhd$TheGaltOceanMileishome to thehighest median income:$54,590 versus$41,180 for the City. Approximately 28.5% of households earn above$100,000 per year compared to 19.5% of City households.The sub-area is characterized by high educational attainment: 39.9% of adultshold a Bachelor’s degree or higher versus 31.1% adults in the City, and ahi hifdlihddd(17%113%fRETAIL RECRUITMENT STRATEGYhighconcentration ofadults withadvanceddegrees(17%versus11.3%ofCity adults).Residents of the Galt Ocean Mile are faced with relatively long commutes(22.4% of residents commute 45 minutes or longer versus 12.4% of Cityresidents).FORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 81
NORTH BEACH VILLAGEDEMOGRAPHIC AND ECONOMIC PROFILEThNthBhVillbiiidliiltiTheNorthBeachVillage sub-areaisexperiencingdeclining population(nearly 9% between 2000 and 2010 with no growth is expectedthrough 2017).The neighborhood is considered less diverse than the City (90.3% ofresidents are Caucasian versus 62.2% of City residents). All other racialfand ethnic groups are under-represented, exceptforAsians, whichcomprise a small portion of the population (2.4% of North BeachVillage residents versus 1.6% of the City).The area is characterized by an older population. Nearly half (49.2%)ofthe residents are 55 years orolderversus 30.3% forthe City.RETAIL RECRUITMENT STRATEGYNorth Beach Village contains the lowest proportion of familyhouseholds of all the sub-areas (27% of households versus 47% Cityhouseholds) and the smallest average household size (1.51 persons perhousehold versus 2.15 for the City).Thbbtlti lhi hdihlththThesub-areaboastsrelativelyhighermedianhome valuesthantheCity: median home value of $166,056 versus $156,501 for the City.There is a low percentage of owner-occupied homes (32.0%) due to alarge share of homes being for seasonal use (33.7%).Middle and upper income area: the median household income isRETAIL RECRUITMENT STRATEGY$43,961 versus $41,180 forthe City. There is a slightly higherconcentration of middle income households.: 42.2% of householdsversus 37.5% of City households. There is also a slightly higherproportion of upper income households: 22.1% versus 19.5% of Cityhouseholds.RETAIL RECRUITMENT STRATEGYThe area contains the highest proportion of adults with a bachelor’sdegree or higher: 47.6% versus 31.1% of City adults. More than aquarter (27.3%) of working adults are engaged in managementoccupations versus 12% of City working adults. There is also thehighest percentage of adults working outside the State: 7.1% versus16%fCitdltFORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 821.6%ofCityadults.
DOWNTOWN REGIONAL ACTIVITY CENTER (D-RAC)DEMOGRAPHIC AND ECONOMIC PROFILEThe Downtown Regional Activity Center sub-area’s population grew nearly 80% between 2000 and 2010, yet population growth of less than 0.2% per year is expected between 2010 and 2017. The area is racially and ethnically diverse and there is a low proportion of family households (27% of households versus 47% Citywide). The area boasts a young population. The median age is 33.9 years versus 42.5 years for the City and 32.4% of population is 25-34 years of age versus 14 7% Citywide RETAIL RECRUITMENT STRATEGYof age versus 14.7% Citywide. The Downtown Regional Activity Center is characterized by the highest median home value in the City ($255,245 versus $156,501 for the City) yet relatively lower incomes. The area has a high concentration (63.1%) of households earning less than $35,000 per year compared 43 0% f h h ld h C A l 9 7% f to 43.0% of households in the City. Approximately 9.7% of area households are living below the poverty level versus 14.1% of households Citywide. The Downtown Regional Activity Center boasts relatively high educational attainment rates; 41.3% of area adults have bachelor’s degree or higher versus 31.1% of adults Citywide There is a high concentration of adults with advanced degrees (16.9% versus 11.3% of adults in the City.) There is a large immigrant population. The area is home to the highest proportion of residents who speak English ‘not well’ or ‘not at RETAIL RECRUITMENT STRATEGYhighest proportion of residents who speak English not well or not at all’ (11.1% of all sub-area residents). Downtown residents are faced with relatively long commutes. The area has the highest proportion of residents with commutes over one hour (12.1% versus 6.9% of City residents).FORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 83
SISTRUNK BOULEVARDDEMOGRAPHIC AND ECONOMIC PROFILEThSi t kBl dbihtidblti lfl tTheSistrunkBoulevardsub-areaischaracterizedbyrelativelyflatpopulation growth (decreasing by 10% between 1990 and 2000 andregaining population the following decade). This area is not expected togrow significantly between 2010 and 2017.It is primarily an African American neighborhood (92.1% of residentsffare ofAfrican American origin and all otherracial and ethical groupsare under-represented).Thesub-areaishometoayoungpopulationwiththelowestmedianage (30.2 years versus 42.5 years Citywide). 42.4% of the residents areyoungerthan 25 years old versus 25.5% forthe City.RETAIL RECRUITMENT STRATEGYConcurrently, Sistrunk Boulevard is characterized by the highestpercentage of family households (62% versus 47% for the City) and thelargest average household size: 2.72 persons per household versus2.15 for the City.Thbildlti lldihlf$79786Thesub-areaincludes relativelylowermedianhome values of$79,786,which is approximately half of the City’s median home value of$156,501,. It also has the highest vacancy rate (20% versus 7.6%Citywide). The Sistrunk Boulevardsub-area includes a relatively lowpercentage of owner-occupied housing (18.8% versus 41.8% for theCityasawhole)andthelowestmedianhouseholdincomeof$194751Cityasawhole)andthelowestmedianhouseholdincomeof$19,475versus $41,180 Citywide.There is a very high concentration of households earning less than$15,000 per year (41.6% of households versus 17.2% of Cityhouseholds) and the highest reported poverty rate (39.9% ofhouseholdsbelowpovertylineversus141%fortheCity)Povertyis1householdsbelowpovertylineversus14.1%fortheCity).Povertyisdefined by the U.S. Census as those households in the lowest incomequintile (those with weighted average household incomes of $20,599or less in 2012.)Residents are reported to have relatively low educational achievement;363%fdltdthhi hhldRidttlFORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 8436.3%ofadultsdonothave ahighschooldegree.Residentsaremostlyengaged in low-wage occupations.
SE 17THSTREET CORRIDORDEMOGRAPHIC AND ECONOMIC PROFILEThe SE 17thStreet Corridor sub-area (Broward County ConventionCenter to the Broward Health Medical Center) is experiencingpopulation growth shifts. Whilethere was an 8% decline between1990 and 2000, the area is expected to grow the fastest between2010 and 2017(currentlygrowingalmost 12% annually).(yggy)This sub-area is home to the highest percentage of Hispanics (29.9%of the population versus 14.6% for the City as a whole). Theproportion of Asians and “Other Race” is also higher than the rest ofthe City (10.7% versus 5.3% for the City as a whole).ThSE17thSCd’dhlRETAIL RECRUITMENT STRATEGYTheSE17thStreetCorridor’sresidents represent thelargest prime-age workforce cohort with a low proportion of people over 65 yearsold and under 15 years old (52.5% of residents are 25 to 54 yearsold cohort versus 44.3% of the City’s population).There is a relatively low percentage of family households (36%versus 47% forthe City) and households tend to be smaller(1.99residents per household versus 2.15 for the City). The sub-area isalso characterized by the lowest rate of owner-occupied homes(15.7% versus 41.8% for the City) as well as a relatively highvacancy rate (12.5% versus 7.6% Citywide).RETAIL RECRUITMENT STRATEGYResidents are characterized as earning relatively low incomes (52.1%of the households have incomes in the lower income brackets – lessthan $34,999 annually - compared to 43% of households Citywide).Two thirds of the workers are employed in low-level wageoccupations.RETAIL RECRUITMENT STRATEGYResidents have achieved moderate educational attainment; a highproportion of adults hold an Associate Degrees or some college(43.6% versus 26.2% of adults Citywide).Residents of the SE 17thStreet Corridor sub-area enjoy relativelyshortcommutes(753%ofresidentshavecommutesunder30FORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 85shortcommutes(75.3%ofresidentshavecommutesunder30minutes compared to 67.2% of all City workers).
Appendix B – Economic Dl tCStdiDevelopment Case StudiesFORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN86
BUSINESS INCUBATION & ACCELERATION PROGRAMSWhat is the difference between Business Incubation and Business Acceleration Programs?Small and medium-sized business retention and attraction is an impactful economic development tactic for directly addressing Fort Lauderdale’s Vision Plan objective of fostering job creation and A business incubator’s main goal is to produce successful firms that will leave the program financially viable and freestanding. These incubator graduates have the potential to create jobs, revitalize neighborhoods, commercialize new technologies, and strengthen local and national economies. Critical to the definition of an incubator is the provision of management guidance Lauderdale s Vision Plan objective of fostering job creation and reducing the City’s current poverty rate.According to the Small Business Entrepreneurship Council and 2011U.S. Census Bureau data, there were 5.68 million employer firms in theUnited States. Firms with fewer than 500 workers accounted for 99.7percent of those businesses, and businesses with less than 20 workersCritical to the definition of an incubator is the provision of management guidance, technical assistance and consulting tailored to young growing companies. Incubators are distinct from accelerators in that they typically provide clients direct subsidized access to:appropriate rental space and flexible leaseshd bi bi i d iRETAIL RECRUITMENT STRATEGYmade up 89.8 percent. Adding in 22.7 million nonemployer firms in2012, the share of U.S. businesses with less than 500 workers increasesto 99.9 percent, and firms with less than 20 workers increases to 98percentThe International Economic Development Council (IEDC)’s bestpracticesinsmallandmediumsizedbusinessretentionandattractionshared basic business services and equipmenttechnology support services, and assistance in obtaining the financing necessary for company growth (including guidance on how to incorporate a business and generate professional financial statements). practicesinsmallandmedium-sizedbusinessretentionandattractionrecommend that municipal economic development departments directlysponsor or manage business incubation and acceleration programs tofoster the development of “entrepreneurial ecosystems” at the locallevel.The key differentiators between business incubation and businessIncubators vary in the way they deliver their services, in their organizational structure and in the types of clients they serve. Highly adaptable, incubators have differing goals, including diversifying rural economies, providing employment for and increasing wealth of depressed inner cities, and transferring technology from universities and major corporations. Incubator clients are at the forefront of developing new and innovative technologies creating new products and services acceleration program functions stems from the life-cycle stage of thecompanies participating and the degree of support or resourcesrequired to advance the company to the next stage of development.Business Incubators Provide Working Space and Technical Assistancedeveloping new and innovative technologies –creating new products and services for market locally, nationally, and even globally.The earliest incubation programs focused on a variety of technology companies or on a combination of light industrial, technology and service firms – today referred to as mixed-use incubators. However, in more recent years, new incubators have emerged targeting industries of interest to the City of Fort Lauderdale such as:According to the National Business Incubation Association (www.nbia.org), business incubation is a business support process that accelerates the successful development of start-up and fledgling companies by providing entrepreneurs with an array of targeted resources and services. These services are usually developed or h d b b d ff d b h h b gggyfood processingmedical technologiesspace and ceramics technologiesarts/arts technology and crafts and FORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 87orchestrated by incubator management and offered both in the business incubator and through its network of contacts.arts/arts technology and crafts, and software development
BUSINESS INCUBATION & ACCELERATION PROGRAMSWh t i th diff b t B i I b ti d What is the difference between Business Incubation and Business Acceleration Programs?Incubators may be funded by public or private/non-profit entities. Depending on the eligibility criteria of a range of funding sources (e.g., a foundation grant), incubator sponsors may target programs to support microenterprise creation, the fMentors benefit from giving back to the community. They get to assist in creating novel products and companies. They expand their network by being infused into many of the programs the business accelerator offers. Mentoring also provides high value investment opportunities as discussed in the next section.Business Accelerators Serve as a VC Funding Conduitneeds of women and minorities, environment/ sustainability/ resiliency, or a specific low-income geographic area. Business Accelerators Provide Mentorship and Team-Based Collaboration HubsTh l t d f b i l t i ll th t hi th t th Business Accelerators Serve as a VC Funding ConduitMost entrepreneurs need fundraising and accelerators therefore tend to attract a wide variety of potential funders and partners to the table. The program can offer a “no strings attached” model or require some level of payback (share of future profit). Business acceleration programs should be open to the regional community at large to provide a great opportunity for networking and relationship b ilding with others in the ind strRETAIL RECRUITMENT STRATEGYThe largest draw of a business accelerator is usually the mentorship that the accelerator program provides. Accelerators have dedicated program managers to assist innovators and entrepreneurs with creating scalable business models, compelling go-to-market strategies and financials that are attractive to investors. A recent study published by the U.S. Small Business Administration indicates that entrepreneurs function best when they are part of a support network. Working networking and relationship building with others in the industry.Business Accelerator Case Study: TechStars, Boulder, COFounded in 2007, the firm is Boulder, Colorado-based, but has expanded nationally, in a kind of franchise model to New York, Seattle, Boston and San Antonio, Texas. A total of 114 companies have gone through the entrepreneurs function best when they are part of a support network. Working alongside other startups provides an opportunity to interact with other entrepreneurs. Accelerators do not usually provide a long-term space for companies to work from, but this can vary.Programs are frequently supported by CEO-level business advisors who understand the challenges a new entrepreneur faces in moving a technology fff hkl dhlk,pggprogram, and 98 are still active. Of those, 73 are receiving funding and have raised $134 million total in venture capital, generating 715 total new employees. TechStars is also very popular, with only 1% of 4,000 applications each year to all locations being accepted. About 80% of TechStars companies go from proof of concept into the market place. Depending on the regional market, business advisors can come across life sciences, technology, clean-tech, sports innovation and consumer products. They are supported by domain experts in marketing, finance and technology development. In Fort Lauderdale, EDSAP advisors have indicated interest from the following sectors:ygppgon to raise venture capital or a significant angel funding round. Companies have raised an average of $1.1 million upon finishing the program, across all the TechStars locations. About 40% of startups come from areas near the city of each program. TechStars founder David Cohen has hired directors at each of the other locations to run the programs.sectors:Technology / ICTMarineTourism (Culinary Arts, etc.)According to Cohen, the venture capital community views high quality accelerators as a filtering mechanism. In effect, TechStars is functioning as a new form of college education for entrepreneurs due to their highly selective front-end application process.FORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 88Healthcare / BiotechProfessional Technical Services Import/Export
BUSINESS INCUBATION & ACCELERATION PROGRAMSTechStars’ model is to bring expert mentors to help its startups, and has a 10-to-1 mentor to startup ratio to make sure each company gets focused, deep attention from several mentors. TechStars has also tried to disseminate information about its model to others, by creating a “Global Accelerator Network” in partnership with Startup America. By Business Accelerator Case Study: Y Combinator –Mountain View, CAY Combinator is a business accelerator located in Silicon Valley known for creating a new model for funding early stage startups. Twice a year, Y Combinatorinvests a small amount of money ($120k) in a large number of gpppyopen-sourcing its model, TechStars has helped launch other accelerators. TechStars differs from other accelerator programs in that it keeps its incubator batches small and tries to give ample amount of attention to each of its startups. In its last batch in summer 2011, TechStars Boulder had 12 companies. It generally only holds one session per year, whereas others have two sessions. Combinatorinvests a small amount of money ($120k) in a large number of startups (85 companies in the first round of 2014). The startups move to Silicon Valley for three months, during which Y Combinator works intensively with them to get the company into the best possible shape and refine their pitch to investors. Each cycle culminates in “Demo Day”, when the startups present their RETAIL RECRUITMENT STRATEGYgenerally only holds one session per year, whereas others have two sessions. TechStars also differs from some others in that its founder is also a startup investor, having recently closed a $28 million second fund. Companies that have gone through the program include SendGrid, Occipital, Orbotix, CrowdTwistand OnSwipe.C t t I f ticompanies to a carefully selected, invite-only audience. After “Demo Day,” the Y Combinator staff and alumni network continue to help founders for the life of their company, and beyond.When taking into account the 172 companies that have raised funding, been acquired, or closed since its founding in 2007, Y Combinator has generated a total business accelerator company value of $7 78 billion for Contact Information:KJ Singh, Managing DirectorTechstars1407 BroadwayNew York, NY 100181 (303) 720 6559generated a total business accelerator company value of $7.78 billion, for an average of $45.2 million per company. (Note: the data is skewed by certain large companies such as Dropbox and Airbnb). Other big exits include: 280 North, Heroku, OMGPOP, Loopt, Cloudkick, Zecter, Wufoo and Reddit. For comparison, Y Combinatorreported in June 2014 that its top 21 companies were worth $4.7 billion.()kj.singh@techstars.comContact Information:Y Combinator335 Pioneer Way Mountain View, CA 94041info@ycombinator cominfo@ycombinator.comFORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 89
BUSINESS INCUBATION & ACCELERATION PROGRAMSEconomic Gardening Pilot Program Littleton COEconomic Gardening Pilot Program, Littleton, COProgram OverviewLittleton’s decision to focus on “economicgardening” instead of “economic hunting”wasprimarilybasedonresearchconductedbyDavidBirchatMIT thatindicatedthatLessons Learned:By leveraging the government agency’s expertise, small and localbusinessescantakeadvantageofthebusinessintelligenceneededtowasprimarilybasedonresearchconductedbyDavidBirchatMITthatindicatedthat“the majority of all new jobs in any local economy were produced by the small, localbusinesses in the community” and that in terms of job creation, the size of thecompany did not matter as much as the company’s rate of growth did. Littletondeveloped a vital aspect of its economic gardening program, assistance tocompanies with high growth potential, especially second stage companies.ThlfhdLlfbusinessescantakeadvantageofthebusinessintelligenceneededtohelp them understand the marketplace and grow.“Intellectual subsidies” are another way that the government canincentivize and support local businesses by using resources they alreadyhave – great for cash strapped metros that still want to support localbusiness.RETAIL RECRUITMENT STRATEGYThree elements ofthe economic gardening program inLittleton are information,infrastructure, and connections.The information component provides market research, geographic information system(GIS) services, and Web marketing support to businesses within city limits.Infrastructure refers to both physical infrastructure such as roads, transportationOrganizational & Institutional Requirements:Capital Costs: UnknownOperating Costs: $5,500 for initial program license fees and $4,290perpilotprogramprojectperyear.networks, utilities, and broadband access and quality-of-life amenities such as artsand culture, libraries, high-quality education, and green spaces.The connections component of the program links entrepreneurs with the regionalworkforce, training, innovation, technical assistance, and other resources andprovides strategic networking opportunities for business owners within similar orcomplementaryindustrysectorspppgpjpyFunding Sources: N/A (participating municipalities/authorities provideprogram fees).Contact information:Rebecca Larsoncomplementaryindustrysectors.The program was launched in 1989 and over the next 20 years, the program grew toits present size of 4.5 full-time staff and an annual operating budget of approximately$500,000. Thousands of local businesses have been assisted, and economic growthstatistics at the macro level have been significant. Between 1990 and 2008, thenumber ofjobs in the cityincreased by71percent—from 14,907 to 25,483jobs—Rebecca LarsonEconomic Intelligence SpecialistEconomic Development Department, Littleton, CO2255 W. Berry Ave., Littleton, CO 80120edrl@littletongov.org303-795-3758jyyp,,jand sales tax revenues increased from $6.8 million to $23.9 million (not adjusted forinflation).During that period, no tax breaks, incentives, or subsidies were offered to potentialnew businesses, and the city’s population grew by only 23.5 percent. Severaldevelopment projects came online during that time despite the lack of city incentives.FORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 90
BUSINESS INCUBATION & ACCELERATION PROGRAMSEconomic Gardening Pilot Program Littleton COEconomic Gardening Pilot Program, Littleton, COProgram OverviewLittleton’s decision to focus on “economicgardening” instead of “economic hunting”wasprimarilybasedonresearchconductedbyDavidBirchatMIT thatindicatedthatLessons Learned:By leveraging the government agency’s expertise, small and localbusinessescantakeadvantageofthebusinessintelligenceneededtowasprimarilybasedonresearchconductedbyDavidBirchatMITthatindicatedthat“the majority of all new jobs in any local economy were produced by the small, localbusinesses in the community” and that in terms of job creation, the size of thecompany did not matter as much as the company’s rate of growth did. Littletondeveloped a vital aspect of its economic gardening program, assistance tocompanies with high growth potential, especially second stage companies.ThlfhdLlfbusinessescantakeadvantageofthebusinessintelligenceneededtohelp them understand the marketplace and grow.“Intellectual subsidies” are another way that the government canincentivize and support local businesses by using resources they alreadyhave – great for cash strapped metros that still want to support localbusiness.RETAIL RECRUITMENT STRATEGYThree elements ofthe economic gardening program inLittleton are information,infrastructure, and connections.The information component provides market research, geographic information system(GIS) services, and Web marketing support to businesses within city limits.Infrastructure refers to both physical infrastructure such as roads, transportationOrganizational & Institutional Requirements:Capital Costs: UnknownOperating Costs: $5,500 for initial program license fees and $4,290perpilotprogramprojectperyear.networks, utilities, and broadband access and quality-of-life amenities such as artsand culture, libraries, high-quality education, and green spaces.The connections component of the program links entrepreneurs with the regionalworkforce, training, innovation, technical assistance, and other resources andprovides strategic networking opportunities for business owners within similar orcomplementaryindustrysectorspppgpjpyFunding Sources: N/A (participating municipalities/authorities provideprogram fees).Contact information:Rebecca Larsoncomplementaryindustrysectors.The program was launched in 1989 and over the next 20 years, the program grew toits present size of 4.5 full-time staff and an annual operating budget of approximately$500,000. Thousands of local businesses have been assisted, and economic growthstatistics at the macro level have been significant. Between 1990 and 2008, thenumber ofjobs in the cityincreased by71percent—from 14,907 to 25,483jobs—Rebecca LarsonEconomic Intelligence SpecialistEconomic Development Department, Littleton, CO2255 W. Berry Ave., Littleton, CO 80120edrl@littletongov.org303-795-3758jyyp,,jand sales tax revenues increased from $6.8 million to $23.9 million (not adjusted forinflation).During that period, no tax breaks, incentives, or subsidies were offered to potentialnew businesses, and the city’s population grew by only 23.5 percent. Severaldevelopment projects came online during that time despite the lack of city incentives.FORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 91
BUSINESS INCUBATION & ACCELERATION PROGRAMSGrow FloridaGrow FloridaProgram OverviewGrowFL provides strategies, resources and support to second-stagecompaniesfornext levelgrowth.BysupportingcompanieswithLessons Learned:Support of local businesses through mentorship and networking by the government helps foster employment growthcompaniesfornextlevelgrowth.BysupportingcompanieswithStrategic Research and peer-to-peer CEO mentoring, GrowFL helpscompanies overcome obstacles to growth and leads them towardsprosperity.Between fiscal years 2009 and 2012, GrowFL helped more than 400companies create more than 4,187 direct and indirect local jobs andbh$581llFl d ’government helps foster employment growth.Organizational & Institutional Requirements:Capital Costs: Unknown Operating Costs: UnknownRETAIL RECRUITMENT STRATEGYcontribute more than$581million toFlorida’seconomy.Today, GrowFL has assisted more than 700 companies through theirStrategic Research and CEO Roundtable programs and recognized150 successful entrepreneurs through their annual awards program,Florida Companies to Watch.Funding Sources: UnknownContact information:Tamiee NemecekDirector, Grow Florida12201 R h P k S i #200 12201 Research Parkway Suite #200 Orlando, FL 32826|(407) 823-6384FORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 92
BUSINESS INCUBATION & ACCELERATION PROGRAMSLessons Learned:Entrepreneurship can be supported by strategic education and outreach efforts.Program OverviewKauffman FastTrac is a global provider of training that equips aspiring andestablished entrepreneurs with the business skills and insights, tools, resources,dtktttdflbiOrganizational & Institutional Requirements:Capital Costs: NoneOperating Costs: Variesandnetworktostartandgrow successfulbusinesses.FastTrac programs are delivered by a variety of affiliate organizations – non-academic, academic, nonprofit andfor-profit – including chambers ofcommerce, business development centers, local and regional economicdevelopment councils, colleges, universities, microenterprise organizations,consultingfirms,andmanyothersacrossthefiftyUnitedStatesandselectRETAIL RECRUITMENT STRATEGYFunding Sources: Program ParticipantsContact information:Kim McGrewBusiness Manager and Customer Relations Specialist(816) 4544380consultingfirms,andmanyothersacrossthefiftyUnitedStatesandselectcountries around the world. Organizational & Institutional RequirementsKauffman Foundation– One Million Cups (816) 454-4380Lessons Learned:Established networking events can help unite the community and spark Program/NetworkProgram Overview1 Million Cups is a program run by entrepreneurs for entrepreneurs. TheprogramtakesplaceeveryWednesdaymorningfrom9:0010:00AMininnovation and job creation.Organizational & Institutional Requirements:Capital Costs: NoneOperating Costs: VariesprogramtakesplaceeveryWednesdaymorningfrom9:00-10:00AMinlocations all around the country. Volunteers in each city run the program semi-autonomously, and gather in coffee shops, co-working spaces, and even TVstations.Developed by Kauffman Labs for Enterprise Creation, and refined byentrepreneurs around the world, I Million Cupsisawayto activate a city’spgFunding Sources: Program ParticipantsContact information:Kim McGrewBusiness Manager and Customer Relations Specialistppyycommunity of entrepreneurs through online curriculum, coaching andexperiential learning. The program is run of, by and for entrepreneurs--adedicated group of startup communityorganizers in each active communityvolunteer their time to organize a promote 1 Million Cups each week. Teamsof organizers license the 1 Million Cups toolset from Kauffman Labs for free,and events are run semi-autonomously.FORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 93Business Manager and Customer Relations Specialist(816) 454-4380
BUSINESS INCUBATION & ACCELERATION PROGRAMSUnion Kitchen Washington DCUnion Kitchen –Washington, DCProgram OverviewUnion Kitchen gives food entrepreneurs communal space to incubate theirconceptsbyprovidingalow-cost,low-risk,full-servicekitchenforlocalLessons Learned:Business incubation programs can extend beyond technology (i.e., “Eds and Meds”) to foster entrepreneurial development of the creative class;conceptsbyprovidingalowcost,lowrisk,fullservicekitchenforlocalbusinesses to grow and establish their operations. This concept eliminates theneed for small businesses to take on debt, purchase expensive equipment, signa long-term lease, or take many of the other risks that business owners mustundertake when starting a business.Union Kitchen provides approximately 4,500 square feet of food prep andkdfdldUKhMeds ) to foster entrepreneurial development of the creative class;By removing the start-up risk associated with opening a restaurant, more cultural diversity can be fostered by removing the typical barriers to entry. Once a concept has proven successful in the marketplace, restaurateurs can take on the risk with more confidence and capital;Th b fit t th it i l di ti di l ll RETAIL RECRUITMENT STRATEGYcooking areas,dry storage,frozen storage, andcoldstorage.UnionKitchenoffers parking, a full slate of business services, and covers all costs for itsmembers, including utilities, taxes, cleaning, trash collection, and pest controlservices. As an independent operator, these services are not only costly(thousands of dollars each month) but are also a highly labor intensivechallenge to business owners, distracting them from focusing on what matterstith ibtdtdfi ditThe benefits to the community are numerous, including creating diverse, locally owned and operated entertainment amenities, potential uptick in leasing activity, and the multiplier effect associated with successful restaurant activity.Organizational & Institutional Requirements:Capital Costs: catering kitchen fit-out approximately $75,000; business most: preparingtheirbestproductandfinding more customers.pgpp y , ;licenses, insurance, marketing (web design, etc.) approximately $25,000.Operating Costs: Monthly lease costs of $6,000 plus approximately $2,000 in operating costs.Funding Sources: Union Kitchen membership dues (variable, depending on size of business operation and space needs)size of business operation and space needs).Contact information:1110 Congress St NEWashington, DC 20002info@unionkitchendc.comFORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 94
RETAIL RECRUITMENT AND RETENTIONRetail Coordinator Lower Merion Township Montgomer Co nt PARetail Coordinator, Lower Merion Township, Montgomery County, PAProgram OverviewThe Township of Lower Merion has a dedicated retail recruiter position housed in the Economic and Community Development Department. The township Lessons Learned:A dedicated staff member whose sole focus is to support and recruit retailers helps to foster a desired tenant mix in key properties in a metroin the Economic and Community Development Department. The township provides the services of its retail coordinator to assist businesses with finding locations and to guide them through the process of opening in the Township. Lower Merion Township’s recruiter is a part time (30 hour/week) position with a limited budget for local travel and conferences (one local ISCS conference and one retail recruiter conference each year). The township does not have an l b d f l b k l H h h f d d helps to foster a desired tenant mix in key properties in a metroOrganizational & Institutional Requirements:Capital Costs: Unknown Operating Costs: UnknownRETAIL RECRUITMENT STRATEGYannual budget for retail brokers or consultants. However, the township funded the initial retail mix plan for the four target areas (towns) and would fund strategic updates to this plan apart from the annual budget as needed.There is one bid in the Township that organizes events, and handles plantings and clean and safe functions and uses social media to announce new businesses and events -which is good support to the retail recruitment effort Funding Sources: UnknownContact information:Heidi TirjanRetail CoordinatorB ildi & Pl i E i D lbusinesses and events which is good support to the retail recruitment effort. Other BIDs outside the township have recruiters which are competing for the best local retailers in the greater Philadelphia area.Building & Planning, Economic DevelopmentEconomic & Community Development Divisionhtirjan@lowermerion.org(610)645-6295FORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 95
RETAIL RECRUITMENT AND RETENTIONRetail Recr iter Pioneer Sq are Seattle WashingtonRetail Recruiter, Pioneer Square, Seattle, WashingtonProgram OverviewThe Alliance for Pioneer Square was launched in June 2010 to lead theimplementationofthemostrecent neighborhoodplan,PioneerSquare2015.Lessons Learned:A non-profit organization whose sole focus is to support and recruit retailers helps to foster a desired tenant mix in key properties in a metroimplementationofthemostrecentneighborhoodplan,PioneerSquare2015.The alliance works holistically in the area. Issues include retail mix plan and asupports a mix of business issues in the business improvement area.The oldest BIA within the City of Seattle, the Pioneer Square BIA was formed asa local business community effort to remain competitive in the marketplace.BIA’sincludeprogramsandservicessuchasparkingmarketingbeautificationhelps to foster a desired tenant mix in key properties in a metroOrganizational & Institutional Requirements:Capital Costs: none (retail recruitment activity houses in existing Business Improvement District)Operating Costs: One fulltime equivalent employee (minimum of three years)RETAIL RECRUITMENT STRATEGYBIA sincludeprogramsandservicessuchasparking,marketing,beautification,security, and public area maintenance.Pioneer Square remains, however, home to enviable assets, including an ever-growing office population, a multitude of transit options, and beautiful, historicbuildings unrivaled elsewhere in the City. Along with key developments nowunderway—notably Stadium Place, with its 11 blocks of housing, retail andOperating Costs: One full-time equivalent employee (minimum of three years)Funding Sources: The Pioneer Square BIA is a self-help mechanism whereby Pioneer Square business owners choose to assess themselves. Where activities support the entire neighborhood the Alliance garners additional revenue from corporate underwriting, grants, mitigation and fund raising.foffice space, and demolition of the Alaskan Way Viaduct that will open up thedistrict to the waterfront—the Alliance for Pioneer Square seized theopportunity to focus on improving retail.The detailed strategy for Seattle’s historic Pioneer Square district was carriedout in 2012 by Downtown Works. A recruiter was hired by the Alliance, tostewardthestrategyByfirsthalfof2013morethanonedozennewContact information:Karen True, Community & Business Development SpecialistAlliance for Pioneer Square 310 1st Ave S, Suite 20, Seattle, WATel: (206) 667-0687lli f istewardthestrategy.Byfirsthalfof2013,morethanonedozennewoperations that fit the merchandise mix plan opened or were slated to do so inPioneer Square.www.allianceforpioneersquare.orgkaren@pioneersquare.orgFORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 96
RETAIL RECRUITMENT AND RETENTIONDowntown A stin Retail De elopment Strateg A stin Te asDowntown Austin Retail Development Strategy, Austin, TexasProgram OverviewThe lead organization for the downtown retail strategy is the DowntownAustin Alliance,apublicimprovementdistrict(PID).Lessons Learned:A public improvement district whose sole focus is to support and recruit retailers helps to foster a desired tenant mix in key properties in targeted AustinAlliance,apublicimprovementdistrict(PID).The DAA’s primary funding source comes from a special assessment onprivately owned, large properties (over $500,000) within this PID. Therevenue is used to provide direct services supporting downtown’s safetyand cleanliness.TheDAAalsoworksasafull-timeadvocatefordowntownthroughdozensretailers helps to foster a desired tenant mix in key properties in targeted redevelopment areas.Organizational & Institutional Requirements:Capital Costs: None.Operating Costs: $150 000 for retail development strategy and one fullRETAIL RECRUITMENT STRATEGYTheDAAalsoworksasafull-timeadvocatefordowntownthroughdozensof programs and initiatives that increase downtown’s appeal and economichealth. The DAA has an overall budget of $ 2.9 M and is involved in a fullrange of BID activities.The retail initiative started in 2003. The DAA undertook various retailstudies and found the most helpful a retail mix plan that included detailedOperating Costs: $150,000 for retail development strategy and one full-time equivalent retail recruitment staff person (minimum of three years).Funding Sources: City of Austin Public Improvement District revenues.Contact information:Mll Al d A i Diinformation about the lease terms on the ground floor and helped theorganizing to create a hierarchy of streets to better focus the organization’sresources.The DAA maintains an annual budget of approximately $150,000 for theretail initiative to cover staff and expenses include consulting servicementionedandretainerforanationalretailbrokertoassistinrecruitingMolly Alexander, Associate DirectorDowntown Austin AllianceTel: 512-469-1766 x7203malexander@downtownaustin.commentionedandretainerforanationalretailbrokertoassistinrecruitingkey national tenants.FORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 97
CROWDFUNDING FOR ECONOMIC DEVELOPMENTOneSparkin Jacksonville FloridaOneSparkin Jacksonville, FloridaProgram OverviewIn April 2013, 130,000 people attended the first OneSpark festival indowntownJacksonville,Florida,tohearindierockbands,watchfireLessons Learned:Crowdfunding can be an innovative way to raise money for alternative-type projectsdowntownJacksonville,Florida,tohearindierockbands,watchfiredancers, admire multimedia art installations, and, most important, listen toentrepreneurs’ pitches for more than 400 projects in search of seedmoney. The ventures ranged from art and theater projects to robotics andvideo games.The Jacksonville One Spark festival was intended, in part, to link the realddlhbfhdhlprojectsMetros outside of the typical tech markets can attract capital to fund art and technology projectsOrganizational & Institutional Requirements:Capital Costs: $1 MillionRETAIL RECRUITMENT STRATEGYestate anddevelopment sector withmembers oftheartsandtechnologycreative class.One Spark raised $107,000—a little more than 10 percent of its $1million budget—from more than 400 backers, some of whom contributedas little as $10, using the popular crowdfunding website Kickstarter.JacksonvilleresidentPeterSRummellimmediatepastchairmanofULICapital Costs: $1 MillionOperating Costs: None.Funding Sources: Various; Peter S. Rummell, immediate past chairman of ULIContact information:JacksonvilleresidentPeterS.Rummell,immediatepastchairmanofULI,provided the remainder, plus another $250,000 for prize money.Contact information:Heidi TirjanRetail CoordinatorBuilding & Planning, Economic DevelopmentEconomic & Community Development Divisionhtirjan@lowermerion.org(610)645-6295FORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 98
CROWDFUNDING FOR ECONOMIC DEVELOPMENTNeighborl Crowd So rced F nding for Local P blic/Ci ic Initiati es and Infrastr ct re Neighbor.ly –Crowd Sourced Funding for Local Public/Civic Initiatives and Infrastructure Betterments (National)Program OverviewLessons Learned:Neighbor.ly is a fund-raising platform focused on civic improvements. Thesite works with organization (neighborhood organizations, public officials,private investors, etc.) to develop fund raising campaigns for civicimprovements and interface with donors.The platform has been used to raise matching funds for Federal, state orthtAftjttt dbNihblthtCapital improvements can be funded by alternative sourcesFederal and state funding can extended by social media driven funding and awarenessCommunity involvement can be supported by social mediaRETAIL RECRUITMENT STRATEGYother grants.After projectsarevettedbyNeighbor.ly,there are run atnocost.The fee is five percent of funds raised. The program works with projectsponsors to drive traffic to the fundraising site. The most successful projectshave sponsors who are fully engaged with their audience, with strong on-and off-linepresence,use social media(Twitter/Facebook),and conductOrganizational & Institutional Requirements:Capital Costs: $1 MillionOperating Costs: variable; depending on city staff resources required to execute any particular fundraising campaign.p,(/),outreach events to constituency to raise awareness about the project.The platform has been operating since 2012 and has raised $1.5 millionfor over 24 projects valued from $2,000 to $400,000.The Platform is a startup funded by the Knight Foundation and Points ofLightFoundationsFunding Sources: Knight Foundation and Points of Light FoundationsContact information:Jase Wilson, CEO, Founderwww.Neighbor.ly.comLightFoundations.FORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 99
PLACEMAKING / URBAN CULTURE CURATION PROGRAMSEconomic De elopment Marketing NOLA Downtown District New Orleans Lo isianaEconomic Development Marketing, NOLA Downtown District, New Orleans, LouisianaProgram OverviewSeeking to attract Industries of the Mind, the Downtown Development District(DDD) needed to change the collective subject, focusing instead on progress,innovation,opportunityandsuccessLessons Learned:Through partnership with the City, private sector firms with marketing expertise can help the city market itself, and in some cases, raise awareness of ke programs and initiati esinnovation,opportunityandsuccess.North Star research found that New Orleans is at once a place with aninternationally renowned, authentic and inspiring framework that is also a cleanslate. The city has become a productive, prolific laboratory for ideas and reformacross many sectors, public and private. Headlines have been earned withadvances in education practices, improved housing and even alternative energy.awareness of key programs and initiatives.Organizational & Institutional Requirements:Capital Costs: $1 MillionOperating Costs: : initial campaign design $250,000 (consultant fees) plus i l $350 000 ll f k i d b di RETAIL RECRUITMENT STRATEGYBut that story is not coordinated or frequent enough. Research regularly revealed adeficit in marketing and promotion.Brand Strategy: North Star recommendedtargeting Industries of the Mind with astrategy that positions Downtown New Orleans as a collage of distinctcommunities and opportunities whose absolute cultural authenticity makes it amuse(sourceofintelligenceandinspirationforcreativity)thatfirestheimaginationapproximately $350,000 annually for marketing and branding costs (minimum three to five years).Funding Sources: City of New Orleans, LA.Contact information:Ed B l w Vi P id t & Di t f Cli t S imuse(sourceofintelligenceandinspirationforcreativity)thatfirestheimaginationand energizes you to shape a prosperous future – yours and the city.Creativity focused on the idea of the citybeingbothamuseandablankcanvas,inviting innovators to “raise your own bar.” Complementary logos were developedfor the DDD and Downtown New Orleans using a fresh, modern color palette thatdoes not rely on stereotypical New Orleans’ colors. The DDD logo was designedEd Barlow, Vice President & Director of Client ServicesNorth Star Ideas209 Danyacrest Drive Nashville, TN 37214Tel: 615.232.2103 x 34615.523.1146 faxinfo@northstarideas comwith an almost three-dimensional effect. The Downtown logo is available inhorizontal and vertical orientations and uses a simple, bold, contemporary styledesigned to make a big impact in large and small spaces. Ads feature NewOrleans entrepreneurs positioned in frontof larger-than-life canvases that speaktheir mind about the city. Brand narrative sparks a connection between this city ofsharp contrasts and the people who might make it their own.info@northstarideas.comFORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 100
PLACEMAKING / URBAN CULTURE CURATION PROGRAMSDestination Promotion thro gh Special E ents Napa Downtown Association CADestination Promotion through Special Events, Napa Downtown Association, CAProgram OverviewTo promote downtown Napa as a destination, the Napa Downtown Associationti dThPl kiGtlhiltiNLessons Learned:Over 7,500 people attended the event, an outstanding turnout for the inaugural year. The day before the event the Cajun Country Web page on the Napa Downtown website had 529 hits The da after the e ent the retainedThePlacemakingGrouptolaunchaspecialevents campaign.NapaDowntown hosted the first Wine Country Cajun Festival in October 2007 toincrease traffic for downtown merchants and restaurants, and also to highlightNapa’s many exceptional chefs and wine-tasting bars.One challenge was how to set this event apart from other concerts and festivalstakingplaceinwinecountry.ThePlacemakingGroupcalleduponNapa’sthe Napa Downtown website had 529 hits. The day after the event, the Web hits went down to 120 per day, demonstrating that event PR and promotion drive Web traffic (www.donapa.com).Organizational & Institutional Requirements:Capital Costs: None.RETAIL RECRUITMENT STRATEGYtakingplaceinwinecountry.ThePlacemakingGroupcalleduponNapa ssignature chefs to offer a different take on the concert-centered event. Whilepromoting what they would be serving at the event – from seafood gumbo andduck jambalaya to pizza with a Cajun twist - the chefs were also reinforcing ourbrand message: Napa Downtown as a dining destination. The Zydeco musiciansand the innovative event organizer Louisiana Sue were also used to promote thefestival.pOperating Costs: Variable, depending on civic support/in-kind donations.Funding Sources: Various (City and private donors).Contact information:Th Pl ki GThe Placemaking Group supplemented the chef and personality placements withcalendar announcements and news releases with event details. Every online festivalnotice was crosslinked with the Napa Downtown website to drive more visitorsthere.TheeventpublicityransimultaneouslywithadvertisinginlocalnewspapersinThe Placemaking Group505 14th Street, 5th FloorOakland, CA 94612Phone: 510.835.7900Fax: 510.768.0044Theeventpublicityransimultaneouslywithadvertisinginlocalnewspapers,inSFGate.com and with Google ad words. All communications drove people to theevent-specific website on the Napa Downtown site.Chefs appeared on Good Morning Sacramento, KGO-TV’s View From the Bay,and KISS-FM’s Renel in the Morning program, and were also featured in a front-page spread in the Napa Register the week prior to the festival.FORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 101
PLACEMAKING / URBAN CULTURE CURATION PROGRAMSDestination Promotion thro gh Special E ents Napa Downtown Association CADestination Promotion through Special Events, Napa Downtown Association, CAProgram OverviewTo promote downtown Napa as a destination, the Napa Downtown Associationti dThPl kiGtlhiltiNLessons Learned:Over 7,500 people attended the event, an outstanding turnout for the inaugural year. The day before the event the Cajun Country Web page on the Napa Downtown website had 529 hits The da after the e ent the retainedThePlacemakingGrouptolaunchaspecialevents campaign.NapaDowntown hosted the first Wine Country Cajun Festival in October 2007 toincrease traffic for downtown merchants and restaurants, and also to highlightNapa’s many exceptional chefs and wine-tasting bars.One challenge was how to set this event apart from other concerts and festivalstakingplaceinwinecountry.ThePlacemakingGroupcalleduponNapa’sthe Napa Downtown website had 529 hits. The day after the event, the Web hits went down to 120 per day, demonstrating that event PR and promotion drive Web traffic (www.donapa.com).Organizational & Institutional Requirements:Capital Costs: None.RETAIL RECRUITMENT STRATEGYtakingplaceinwinecountry.ThePlacemakingGroupcalleduponNapa ssignature chefs to offer a different take on the concert-centered event. Whilepromoting what they would be serving at the event – from seafood gumbo andduck jambalaya to pizza with a Cajun twist - the chefs were also reinforcing ourbrand message: Napa Downtown as a dining destination. The Zydeco musiciansand the innovative event organizer Louisiana Sue were also used to promote thefestival.pOperating Costs: Variable, depending on civic support/in-kind donations.Funding Sources: Various (City and private donors).Contact information:Th Pl ki GThe Placemaking Group supplemented the chef and personality placements withcalendar announcements and news releases with event details. Every online festivalnotice was crosslinked with the Napa Downtown website to drive more visitorsthere.TheeventpublicityransimultaneouslywithadvertisinginlocalnewspapersinThe Placemaking Group505 14th Street, 5th FloorOakland, CA 94612Phone: 510.835.7900Fax: 510.768.0044Theeventpublicityransimultaneouslywithadvertisinginlocalnewspapers,inSFGate.com and with Google ad words. All communications drove people to theevent-specific website on the Napa Downtown site.Chefs appeared on Good Morning Sacramento, KGO-TV’s View From the Bay,and KISS-FM’s Renel in the Morning program, and were also featured in a front-page spread in the Napa Register the week prior to the festival.FORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 102
PLACEMAKING / URBAN CULTURE CURATION PROGRAMSArt in P blic Places Program Cit of A stin Department of Economic De elopment A stin TXArt in Public Places Program, City of Austin Department of Economic Development, Austin, TXProgram OverviewEstablished by the City in 1985, the Art in Public Places (AIPP) programll b tithlldti llidti tttthhi tdLessons Learned:Municipalities can take a leadership role in funding placemaking programs and activities.collaborates withlocalandnationallyrecognizedartiststocuratethehistory andvalues of Austin’s community into cultural landmarks that have becomecornerstones of the City’s identity.The City of Austin was the first municipality in Texas to make a commitment toinclude works of art in construction projects. By ordinance, 2% of eligible capitalimprovementprojectbudgetsareallocatedtocommissionorpurchaseartforthatOrganizational & Institutional Requirements:Capital Costs: Varies – based on municipal construction costs.Operating Costs: N/A – operated by City of Austin Economic Development Department.RETAIL RECRUITMENT STRATEGYimprovementprojectbudgetsareallocatedtocommissionorpurchaseartforthatsite. Austin’s Public Art Collection has been incorporated as an importantplacemaking tool into the City’s airport, convention center, libraries, parks, policestations, recreation centers, and streetscapes, enhancing public spaces forresidents and visitors.Funding Sources: General Fund (tax on municipal construction projects).Contact information:City of Austin Department of Economic Development201 E. Second Street Ati TX 78701Austin , TX 78701512-974-7700www.austintexas.govFORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 103
PLACEMAKING / URBAN CULTURE CURATION PROGRAMSCharlotte Street Fo ndation Urban C lt re C ratorial Residenc Program Kansas Cit MOCharlotte Street Foundation Urban Culture Curatorial Residency Program, Kansas City, MOProgram OverviewThe Charlotte Street Foundation’s program’s mission is to be a primary catalystitifliKCitib ttitliIn 2012, the foundation launched the new Curatorial Residency Program to increatingasenseofplaceinKansasCityasavibrant,creative metropolis,alive with artistic collaboration and ideas. The organization provides programmanagement and support to artists in residence as well as marketing andbranding assistance through social media and other communication tools suchas:Providesannualcashawardstovisualandgenerativeperformingartistsfoster opportunities for outstanding emerging curators from around the country to immerse themselves in the “arts ecosystem” of the Kansas City region. The program provides support for an annually selected curator-in-residence to develop and present original contemporary arts programming responsive to and inclusive of the work of Kansas City-area artists. The Charlotte Street Foundation is funded by the City of Kansas City and other RETAIL RECRUITMENT STRATEGYProvidesannualcashawardstovisualandgenerativeperformingartistsProvides free studios and performance and exhibition spaces to theater,dance, music, film/video and visual artists for the creation andpresentation of new workCoordinates public exposure to these exhibitions and performances,andfacilitateartisticcollaborationandexchangeprivate and philanthropic donorsLessons Learned:Municipalities can take a leadership role in funding placemaking activities by supporting Urban Culture Curatorial Residency programs.andfacilitateartisticcollaborationandexchangeProvides educational and professional development opportunities foryoung, emerging, and mid-career artists of all disciplines and help tobuild a market for their workAdvocates and plans on behalf of Kansas City artists and the artsitithhil th ibidiildOrganizational & Institutional Requirements:Capital Costs: N/AOperating Costs: N/AFunding Sources: grants and philanthropic donationscommunitywithphilanthropic,business andcivicleadersEngages national philanthropic and cultural leaders with Kansas Cityartists and the arts community.The foundation’s Urban Culture Projectinitiative has been operational since2003 and has supported and presented the work of thousands of artists in thefflhbflldlud g Souces: ga s a d p a opc do ao sContact information:1000 West 25th Street, Kansas City Missouri 64108816.221.5115www charlottestreet orgform oforiginalexhibitions, performances, installations, cross-disciplinaryprojects and public programs of widevariety. This programming has earnedpopular recognition, establishing the Urban Culture Project venues as hubs forartists and unconventional, challenging new work. Programming proactivelyintegrates multiple artistic disciplines, promoting collaboration and exchangeamong artists in the fields of visual art, film and video, theater, performance,idhiddiwww.charlottestreet.orgFORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 104music,dance, architecture anddesign.
PLACEMAKING / URBAN CULTURE CURATION PROGRAMSSo th Main Mosaic Artwalk Memphis TNSouth Main Mosaic Artwalk, Memphis, TNProgram OverviewThe City of Memphis Downtown Memphis Commission contracted with theUbCltItitt(bltititt)ttifihtLessons Learned:Municipalities can take a leadership role in funding placemaking activities UrbanCultureInstitute(www.urbancultureinstitute.org)tocurateaseries ofeightpublic art installations by local artists installed in Fall 2014. Christina Lanzl wasone of the curators of this Downtown Memphis Commission initiative. Theinstallations include:A kinetic wave sculpture by Jonathan Auger based on Ned Kahn'sinstallationsppgpgby establishing special assessment districts with urban culture and arts programs.Organizational & Institutional Requirements:Capital Costs: N/ARETAIL RECRUITMENT STRATEGYinstallationsA lenticular mural by Stephanie Cosby and Eszter SzikszA baby grand piano installation by Nick Pena on the Huling Avenueloading dock provides a hands-on opportunity for pedestrians to play atuneOperating Costs: N/AFunding Sources: Special Assessment District RevenuesContact information:Downtown Memphis CommissionA food can mural collaboration in the windows of the Adler Hotelvisualizes cartoon-like charactersColorful painted murals by Marcellus Lovelace and Brandon Marshallwith Kenny Hayes celebrate historic Memphis moments.LanceTurner'smural"Jay"featuresarasterizedpaintingtechniquep114 North Main StreetMemphis, TN 38103(901) 575-0540www.downtownmemphiscommission.comwww.gosouthmain.comLanceTurnersmuralJayfeaturesarasterizedpaintingtechniquesimilar to newsprint (as popularized by Chuck Close)A portrait of punk rock icon Jay Reatard by TurnerThe "Larger Than" flower bouquet installed by the Metal Museum in thepocket park at the corner of TalbotThe Urban Culture Institute forms partnerships with public, private and non-profitorganizationsaswellasartiststopursue a broad range of artistic and culturalendeavors, placemaking and community building projects.FORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 105
PLACEMAKING / URBAN CULTURE CURATION PROGRAMSThe Boston Arts Commission & HarborArtsInternational O tdoor Arts E hibition Boston MAThe Boston Arts Commission & HarborArtsInternational Outdoor Arts Exhibition, Boston, MAProgram OverviewHarborArts is supported by the Boston Art Commission, the entity with the legalauthority to approve and site new public art on property owned by the City ofBoston. Site-specific artworks in an urban landscape identify Boston as a place withRooftop installations offer commanding viewpoints within the shipyard andserved as new artistic landmarks for the waterfront communities.HarborArts was conceived as aglobal communitybringingpeople togetherlong history and a great capacity for innovation. These artworks, both permanentand temporary, range from traditional and new media public art pieces tomunicipal design elements, such as wayfinding systems and artistic lighting.In addition, the Art Commission has care and custody of all paintings, murals,statues, bas-reliefs, sculptures, monuments, fountains, arches and other permanentstructuresintendedforornamentorcommemorationonCitypropertyTheBostongyggppgto champion the vital role that oceans, waterways and harbors play in thefuture of our planet. An environmentally conscious approach including theuse of recycled materials was a central component of the HarborArtsexhibition concept.Lessons Learned:RETAIL RECRUITMENT STRATEGYstructuresintendedforornamentorcommemorationonCityproperty.TheBostonArt Commission supports a thriving artistic consciousness within the city byextending community involvement beyond everyday appreciation to meaningfulengagement in the creation, evolving interpretation and ongoing care of artworksthroughout Boston’s neighborhoods.HarborArtsisanon-profitpublicartinstitution is dedicated to fostering culturalMunicipalities can take a leadership role in funding placemaking activities by supporting non-profit urban arts programs.Organizational & Institutional Requirements:Capital Costs: N/Aengagement through visual, literary, and performing arts. HarborArts spearheadedthe unique challenge of transforming Boston's historic, working shipyard into ameaningful space for creativity, discovery, inspiration, and education within EastBoston's economically and ethnically diverse community through accessiblecollaboration and environmental stewardship.TheHarborArtsenvironmentalexhibitionoflargescaleworksby50artistsfromCap a Cos s: N/Operating Costs: N/AFunding Sources: Public grants, private and philanthropic donationsContact information:HbAt ITheHarborArtsenvironmentalexhibitionoflarge-scaleworksby50artistsfromthree continents was curated for a working shipyard in Boston. Set within the 14-acre grounds and docks of the historic Boston Harbor Shipyard & Marina, theexhibition was curated in two installments with a balanced selection ofinternationally established and emerging artists for foster cross-cultural dialog andexchange.HarborArts, Inc.Boston Harbor Shipyard256 Marginal StEast Boston, MA 02128617.982.3244www.harborarts.orgbli tb tWorks in a wide range of media and materials were on view for a period of sixmonths to several years. HarborArts was juried by Institute of ContemporaryArt/Boston curator Randi Hopkins. Some ofthe installed works directly interactedwith the water, such as the 1,000-foot long tidal installation along the main pierand tall, bobbing bamboo poles at the waterfront, and colorful LED-lit Lighthousesset accents dayand night, visible from the opposite side of the harbor in downtownwww.publicartboston.comFORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 106ygppBoston.
PLACEMAKING / URBAN CULTURE CURATION PROGRAMSDistrict of Col mbia Art Place Grant ProjectDistrict of Columbia Art Place Grant ProjectProgram OverviewThe DC Office of Planning(OP)received agrant of $250,000 from aprivate-Lessons Learned:Municipalities can take a leadership role in funding placemaking activities g()g,ppublic collaboration with ArtPlace. Its aim is to drive revitalization across thecountry by putting the arts at the centerof economic development. Each projectsupported by ArtPlace has been selected for developing a new model of helpingtowns and cities thrive by strategically integrating artists and arts organizations intokey local efforts in transportation, housing, community development, job creationandplacemaking.ppgpgby supporting non-profit urban arts programs.Organizational & Institutional Requirements:Capital Costs: N/AOperating Costs: N/ARETAIL RECRUITMENT STRATEGYpgThe DC Office of Planning created Arts and Culture “Temporiums” in fouremerging creative neighborhoods where vacant and/or underutilized storefrontsand empty lots were transformed into an artist showcase/village for three to sixmonth periods. The DC Office of Planning contracted with qualified projectmanagers/curators to create the Arts and Culture Temporiums in two emergingtiihb h d(BklddtDd)htd/Operating Costs: N/AFunding Sources: Public grants, private and philanthropic donationsContact information:Kimberly DrigginsAssociate Director for Citywide PlanningRETAIL RECRUITMENT STRATEGYcreative neighborhoods(BrooklandandgreaterDeanwood),where vacantand/orunderutilized storefronts and empty lots were transformed into an artist showcase ineach neighborhood for three to six months (total contract value of $150,000).Artists transformed spaces in these neighborhoods into multi-dimensional andmultipurpose uses (i.e., gallery for visual artists, performing arts space, productionspace,etc.).Thegoal is to find two to four blocks with both vacant buildingsandygDistrict of Columbia Office of theDeputy Mayor for Planning and Economic Development1100 4th Street, SW, Suite 650 East, Washington, DC 20024 kimberly.driggins@dc.gov202-442-7624p,)ggempty lots in proximity that could be completely transformed and promote artistentrepreneurship and community building in the process. This effort leveraged theOffice of Planning’s completed Creative DC Action Agenda and Small Area Plans,Studies for those neighborhoods.FORT LAUDERDALE ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN / 107