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HomeMy WebLinkAboutBUXTON_COMMUNITY_ID_PROPOSAL11111111 lill 111111111111111111111111111111111111 *NEW FILE* BUXTON_COMMUNITY ID_ PROPOSAL CITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. I May 27, 2008 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Planning Department Leigh M. De Santis, Economic Development Administrator, 949-644-3207, ldesantis@city.newport-beach.ca.us SUBJECT: Professional Service Agreement with Buxton Community ID for Market Research, Retail Leads, and Marketing Materials RECOMMENDATION: Approve the professional Services Agreement with Buxton Community ID for a not to exceed cost of seventy-five thousand dollars ($75,000). 2. Authorize the mayor and City Clerk to sign the Agreement. DISCUSSION: Background: The Strategic Plan for Fiscal and Economic Sustainability sets as its first goal the revitalization of older commercial areas. Objective 1.1 Action step 1 directs "contracting with a consulting firm to prepare specific reports for each commercial village and/or identified sub -area, utilizing existing and new data to provide research on commercial market area and purchasing trend detail. The consultant should provide business attraction recommendations, contact information, and targeted retailer marketing packages." Following that directive a Marketing RFP was developed and sent to five marketing consultants. Three firms said they planned to respond. Only one actually submitted a proposal. The proposing firm is Buxton Community ID. Buxton has evolved a niche expertise that staff believes is most likely to achieve the goal of actually bringing new businesses. Buxton explains their approach in what they call their "Statement of Uniqueness", which says in part. PSA with Buxton Community ID May 27, 2008 Page 2 1. CommunitylD is a target -marketing system specifically designed for communities. Most traditional marketing research firms offer retail studies for economic development using some form of a Gap Analysis. Gap Analysis typically identifies broad industry segments that are selected because annual sales of that segment are less than regional or state averages. CommunitylD uses drive time derived trade area information and lifestyles analysis to identify the specific retailer that will provide the goods and services that the customers in the trade area want to buy. CommunitylD is able to tell its clients precisely which retail concepts they should be recruiting; who in that company they should contact, and delivers the factual data required to make the recruiting effort a reality. 2. CommunitylD is available in all 'regions of the United States for communities varying in size and geography. It has helped communities land in excess of 15 million square feet of retail as a result of our analysis. 3. Buxton has developed location profiles for over 4,500 retailers and restaurants. This proprietary database allows us to match these firms' customer and location requirements with a community's trade area and then identify only those firms that can successfully locate and operate in the community. 4. Proprietary systems and software blends consumer databases. CommunitylD has one of the country's largest collections of consumer data available. Many of the databases are updated as often as every 30 days. Through the use of proprietary systems and software we have been uniquely able to enhance typical standalone database programs to significantly enrich and expand the data, making it more effective for retail analysis. The RFP requested that the consultant examine three commercial areas, and create trade area maps for each area, and develop three targeted marketing leads and accompanying .recruiting materials for each area for a minimum of nine custom marketing packages. Based on the Strategic Plan staff referenced Balboa Village, Lido and Cannery Villages and McFadden Square and West Newport as the three areas in the RFP. Since then the Economic Development Committee (EDC) has pointed out that West Newport has few vacancies and that it might more productive to study another area. Staff will continue to consult with the EDC on the third area. For the price they usually charge, Buxton is proposing to allow the City to select six marketing leads per area, for a total of eighteen custom marketing packages. They will provide two hard copies of each package, a PDF version, and each of the 18 marketing packages will be loaded onto SCOUT (proprietary software) for the City's use. The SCOUT software is available to the City for one year as part of this contract. With the SCOUT software the City will have the ability to create additional marketing materials A PSA with Buxton Community ID May 27, 2008 Page 3 and do some additional searches. The contract provides that the City at its sole option may subscribe to SCOUT for another year'at the cost of $1,000 per month. Buxton anticipates accomplishing all of its work in approximately sixty days for the flat rate of $75,000. Should the City request additional work it will be billed at $200 per hour. Staff contacted five (5) of Buxton's long list of references; all were very satisfied and highly recommended Buxton and their services. Two had use Buxton more than once. All felt -that businesses had been successfully attracted based on the materials from Buxton. Environmental Review: Approval of a PSA is not a project as defined by CEQA. Funding Availability: Funding for this project exists in account #2720-8080. It was one of the projects envisioned at the time of adoption of the Strategic Plan and the budget amendment of $350,000 for its phase 1 implementation. Prepared by: AeighJ . De S/l/(antis, Economic Development Administrator Submitted by: Sharon Z. Wood, Assistant City Ma ager Attachments: Professional Services Agreement PROFESSIONAL SERVICES AGREEMENT WITH BUXTON COMMUNITY ID FOR A RETAIL MARKETING PROGRAM FOR THREE RETAIL AREAS IN NEWPORT BEACH THIS AGREEMENT is made and entered into as of this 10th day of June, 2008, by and between the CITY OF NEWPORT BEACH, a Municipal Corporation ("City"), and BUXTON COMPANY, a Texas Corporation whose office is located at 2651 South Polaris Drive, Forth Worth, Texas, ("Consultant"), and is made with reference to the following: RECITALS A. City is a municipal corporation duly organized and validly existing under the laws of the State of California with the power to carry on its business as it is now being conducted under the statutes of the State of California and the Charter of City. B. City is planning to recruit retail businesses to broaden the scope of products and services available to residents and visitors, capture sales tax leakage, increase jobs and enhance retail villages by decreasing vacancies. C. City desires to engage Consultant to study three retail villages, as established by the Strategic Plan for Fiscal and Economic Sustainability, for the purpose of identifying three viable retail business leads for each village and providing materials and contacts to be used by the City to recruit those businesses ("Project"). D. Consultant possesses the skill, experience, ability, background, certification and knowledge to provide the services described in this Agreement. E. The principal members of Consultant for purposes of Project, shall be Lisa Hill, Territory Business Manager, Amy Wetzel, Senior Vice President, Philip Davis, Manager/Senior GIS Analyst, Bill R. Shelton, CEcD and Harvey H. Yamagate, Chief marketing Officer & President and other members of the staff of Buxton Community ID. F. City has solicited and received a proposal from Consultant, has reviewed the previous experience and evaluated the expertise of Consultant, and desires to retain Consultant to render professional services under the terms and conditions set forth in this Agreement. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: 1. TERM The term of this Agreement shall commence on the above written date, and shall terminate on the 30th day of June, 2009, unless terminated earlier as set forth herein. LI 2. SERVICES TO BE PERFORMED Consultant shall diligently perform all the services described in the Scope of Services attached hereto as Exhibit A and incorporated herein by reference. The City may elect to delete certain tasks of the Scope of Services at its sole discretion. 3. TIME OF PERFORMANCE Time is of the essence in the performance of services under this Agreement and Consultant shall perform the services in accordance with the schedule included in Exhibit A. The failure by Consultant to strictly adhere to the schedule may result in termination of this Agreement by City. Notwithstanding the foregoing, Consultant shall not be responsible for delays due to causes beyond Consultant's reasonable control. However, in the case of any such delay in the services to be provided for the Project, each party hereby agrees to provide notice to the other party so that all delays can be addressed. 3.1 Consultant shall submit all requests for extensions of time for performance in writing to the Project Administrator not later than ten (10) calendar days after the start of the condition that purportedly causes a delay. The Project Administrator shall review all such requests and may grant reasonable time extensions for unforeseeable delays that are beyond Consultant's control. 3.2 For all time periods not specifically set forth herein, Consultant shall respond in the most expedient and appropriate manner under the circumstances, by either telephone, fax, hand -delivery or mail. 4. COMPENSATION TO CONSULTANT City shall pay Consultant for the services as follows: $15,000 due on execution of this agreement; $35,000 due upon delivery of the three retail site assessments; and $25,000 due upon delivery of the nine retail marketing packages (three appropriate leads for each area). In accordance with the provisions of this Section and the Schedule of Billing Rates attached hereto as Exhibit B and incorporated herein by reference. Consultant's compensation for all work performed in accordance with this Agreement, including all reimbursable items and subconsultant fees, shall not exceed Seventy -Five Thousand Dollars ($75,000) without prior written authorization from City. No billing rate changes shall be made during the term of this Agreement without the prior written approval of City. 4.1 Consultant shall submit invoices to City describing the work performed. Consultant's bills shall include the name of the person who performed the work, a brief description of the services performed and/or the specific task in the Scope of Services to which it relates, the date the services were 2 performed., City shall pay Consultant no later than thirty (30) days after approval of the invoice by City staff. 4.2 City shall reimburse Consultant only for those costs or expenses specifically approved in this Agreement, or specifically approved in writing in advance by City. Unless otherwise approved, such costs shall be limited and include nothing more than the following costs incurred by Consultant: A. The actual costs of subconsultants for performance of any of the services that Consultant agrees to render pursuant to this Agreement, which have been approved in advance by City and awarded in accordance with this Agreement. B. Approved reproduction charges. C. Actual costs and/or other costs and/or payments specifically authorized in advance in writing and incurred by Consultant in the performance of this Agreement. 4.3 Consultant shall not receive any compensation for Extra Work performed without the prior written authorization of City. As used herein, "Extra Work" means any work that is determined by City to be necessary for the proper completion of the Project, but which is not included within the Scope of Services and which the parties did not reasonably anticipate would be necessary at the execution of this Agreement. Compensation for any authorized Extra Work shall be paid in accordance with the Schedule of Billing Rates as set forth in Exhibit B. 4.4 Notwithstanding any other provision of this Agreement, when payments made by City equal 90% of the maximum fee provided for in this Agreement, no further payments shall be made until City has accepted the final work under this Agreement. 5. PROJECT MANAGER Consultant shall designate a Project Manager, who shall coordinate all phases of the Project. This Project Manager shall be available to City at all reasonable times during the Agreement term. Consultant has designated Lisa Hill to be its Project Manager. Consultant shall not remove or reassign the Project Manager or any personnel listed in Exhibit A or assign any new or replacement personnel to the Project without the prior written consent of City. City's approval shall not be unreasonably withheld with respect to the removal or assignment of non -key personnel. Consultant, at the sole discretion of City, shall remove from the Project any of its personnel assigned to the performance of services upon written request of City. Consultant warrants that it will continuously furnish the necessary personnel to complete the Project on a timely basis as contemplated by this Agreement. 3 6. ADMINISTRATION This Agreement will be administered by the Economic Development Division of the Planning Department. Leigh M. De Santis, Economic Development Administrator shall be the Project Administrator and shall have the authority to act for City under this Agreement. The Project Administrator or his/her authorized representative shall represent City in all matters pertaining to the services to be rendered pursuant to this Agreement. 7. CITY'S RESPONSIBILITIES In order to assist Consultant in the execution of its responsibilities under this Agreement, City agrees to, where applicable: A. Provide access to, and upon request of Consultant, one copy of all existing relevant information on file at City. City will provide all such materials in a timely manner so as not to cause delays in Consultant's work schedule. B. Provide blueprinting and other services through City's reproduction company for bid documents. Consultant will be required to coordinate the required bid documents with City's reproduction company. All other reproduction will be the responsibility of Consultant and as defined above. C. Provide usable life of facilities criteria and information with regards to new facilities or facilities to be rehabilitated. 8. STANDARD OF CARE 8.1 All of the services shall be performed by Consultant or under Consultant's supervision. Consultant represents that it possesses the professional and technical personnel required to perform the services required by this Agreement, and that it will perform all services in a manner commensurate with community professional standards. All services shall be performed by qualified and experienced personnel who are not employed by City, nor have any contractual relationship with City. By delivery of completed work, Consultant certifies that the work conforms to the requirements of this Agreement and all applicable federal, state and local laws and the professional standard of care. 8.2 Consultant represents and warrants to City that it has, shall obtain, and shall keep in full force in effect during the term hereof, at its sole cost and expense, all licenses, permits, qualifications, insurance and approvals of whatsoever nature that is legally required of Consultant to practice its profession. Consultant shall maintain a City of Newport Beach business license during the term of this, Agreement. 8.3 Consultant shall not be responsible for delay, nor shall Consultant be responsible for damages or be in default or deemed to be in default by Ell reason of strikes, lockouts, accidents, or acts of God, or the failure of City to furnish timely information or to approve or disapprove Consultant's work promptly, or delay or faulty performance by City, contractors, or governmental agencies. 9. HOLD HARMLESS To the fullest extent permitted by law, Consultant shall indemnify, defend and hold harmless City, its City Council, boards and commissions, officers, agents, volunteers, and employees (collectively, the "Indemnified Parties") from and against any and all claims (including, without limitation, claims for bodily injury, death or damage to property), demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs and expenses (including, without limitation, attorney's fees, disbursements and court costs) of every kind and nature whatsoever (individually, a Claim; collectively, "Claims"), which may arise from or in any manner relate (directly or indirectly) to any breach of the terms and conditions of this Agreement, any work performed or services provided under this Agreement including, without limitation, defects in workmanship or materials or Consultant's presence or activities conducted on the Project (including the negligent and/or willful acts, errors and/or omissions of Consultant, its principals, officers, agents, employees, vendors, suppliers, consultants, subcontractors, anyone employed directly or indirectly by any of them or for whose acts they may be liable or any or all of them). Notwithstanding the foregoing, nothing herein shall be construed to require Consultant to indemnify the Indemnified Parties from any Claim arising from the sole negligence or willful misconduct of the Indemnified Parties. Nothing in this indemnity shall be construed as authorizing any award of attorney's fees in any action on or to enforce the terms of this Agreement. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by the Consultant. 10. INDEPENDENT CONTRACTOR It is understood that City retains Consultant on an independent contractor basis and Consultant is not an agent or employee of City. The manner and means of conducting the work are under the control of Consultant, except to the extent they are limited by statute, rule or regulation and the expressed terms of this Agreement. Nothing in this Agreement shall be deemed to constitute approval for Consultant or any of Consultant's employees or agents, to be the agents or employees of City. Consultant shall have the responsibility for and control over the means of performing the work, provided that Consultant is in compliance with the terms of this Agreement. Anything in this Agreement that may appear to give City the right to direct Consultant as to the details of the performance or to exercise a measure of control over Consultant shall mean only that Consultant shall follow the desires of City with respect to the results of the services. R 11. COOPERATION Consultant agrees to work closely and cooperate fully with City's designated Project Administrator and any other agencies that may have jurisdiction or interest in the work to be performed. City agrees to cooperate with the Consultant on the Project. 12. CITY POLICY Consultant shall discuss and review all matters relating to policy and Project direction with City's Project Administrator in advance of all critical decision points in order to ensure the Project proceeds in a manner consistent with City goals and policies. 13. PROGRESS Consultant is responsible for keeping the Project Administrator and/or his/her duly authorized designee informed on a regular basis regarding the status and progress of the Project, activities performed and planned, and any meetings that have been scheduled or are desired. 14. INSURANCE Without limiting Consultant's indemnification of City, and prior to commencement of work, Consultant shall obtain, provide and maintain at its own expense during the term of this Agreement, a policy or policies of liability insurance of the type and amounts described below and in a form satisfactory to City. A. Certificates of Insurance. Consultant shall provide certificates of insurance with original endorsements to City as evidence of the insurance coverage required herein. Insurance certificates must be approved by City's Risk Manager prior to commencement of performance or issuance of any permit. Current certification of insurance shall be kept on file with City at all times during the term of this Agreement. B. Signature. A person authorized by the insurer to bind coverage on its behalf shall sign certification of all required policies. C. Acceptable Insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance in the State of California, with an assigned policyholders' Rating of A (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best's Key Rating Guide, unless otherwise approved by the City's Risk Manager. D. Coverage Requirements. Workers' Compensation Coverage. Consultant shall maintain Workers' Compensation Insurance and Employer's Liability 9 9 Insurance for his or her employees in accordance with the laws of the State of California. In addition, Consultant shall require each subcontractor to similarly maintain Workers' Compensation Insurance and Employer's Liability Insurance in accordance with the laws of the State of California for all of the subcontractor's employees. Any notice of cancellation or non -renewal of all Workers' Compensation policies must be received by City at least thirty (30) calendar days (1.0 calendar days written notice of non- payment of premium) prior to such change. The insurer shall agree to waive all rights of subrogation against City, its officers, agents, employees and volunteers for losses arising from work performed by Consultant for City. ii. General Liability Coverage. Consultant shall maintain commercial general liability insurance in an amount not less than two million dollars ($2,000,000) per occurrence for bodily injury, personal injury, and property damage, including without limitation, contractual liability. If commercial general liability insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement, or the general aggregate limit shall be at least twice the required occurrence limit. III. Automobile Liability Coverage. Consultant shall maintain automobile insurance covering bodily injury and property damage for all activities of the Consultant arising out of or in connection with work to be performed under this Agreement, including coverage for any owned, hired, non -owned or rented vehicles, in an amount not less than two million dollars ($2,000,000) combined single limit for each occurrence. iv. Professional Errors and Omissions Insurance. Consultant shall maintain professional errors and omissions insurance, which covers the services to be performed in connection with this Agreement in the minimum amount of two million dollars ($2,000,000). E. Endorsements. Each general liability and automobile liability insurance policy shall, be endorsed with the following specific language: I. The City, its elected or appointed officers, officials, employees, agents and volunteers are to be covered as additional insureds with respect to liability arising out of work performed by or on behalf of the Consultant. ii. This policy shall be considered primary insurance as respects to City, its elected or appointed officers, officials, employees, agents and volunteers as respects to all claims, losses, or liability arising directly or indirectly from the Consultant's operations or services provided to City. Any insurance maintained by City, including any self -insured retention City may have, shall be considered excess 7 insurance only and not contributory with the insurance provided hereunder. iii. This insurance shall act for each insured and additional insured as though a separate policy had been written for each, except with respect to the limits of liability of the insuring company. iv. The insurer waives all rights of subrogation against City, its elected or appointed officers, officials, employees, agents and volunteers. V. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to City, its elected or appointed officers, officials, employees, agents or volunteers. vi. The insurance provided by this policy shall not be suspended, voided, canceled, or reduced in coverage or in limits, by either party except after thirty (30) calendar days (10 calendar days written notice of non-payment of premium) written notice has been received by City. F. Timely Notice of Claims. Consultant shall give City prompt and timely notice of claim made or suit instituted arising out of or resulting from Consultant's performance under this Agreement. G. Additional Insurance. Consultant shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the work. 16. PROHIBITION AGAINST ASSIGNMENTS AND TRANSFERS Except as specifically authorized under this Agreement, the services to be provided under this Agreement shall not be assigned, transferred contracted or subcontracted out without the prior written approval of City. Any of the following shall be construed as an assignment: The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock of Consultant, or of the interest of any general partner or joint venturer or syndicate member or cotenant if Consultant is a partnership or joint -venture or syndicate or cotenancy, which shall result in changing the control of Consultant. Control means fifty percent (50%) or more of the voting power, or twenty-five percent (25%) or more of the assets of the corporation, partnership or joint -venture. 16. SUBCONTRACTING The parties recognize that a substantial inducement to City for entering into this Agreement is the professional reputation, experience and competence of Consultant. Assignments of any or all rights, duties or obligations of the Consultant under this Agreement will be permitted only with the express written consent of City. Consultant shall not subcontract any portion of the work to be performed under this Agreement without the prior written authorization of City. N 17. OWNERSHIP OF DOCUMENTS Each and every report, draft, map, record, plan, document and other writing produced (hereinafter "Documents"), prepared or caused to be prepared by Consultant, its officers, employees, agents and subcontractors, in the course of implementing this Agreement, shall become the exclusive property of City, and City shall have the sole right to use such materials in its discretion without further compensation to Consultant or any other party. Consultant shall, at Consultant's expense, provide such Documents to City upon prior written request. Documents, including drawings and specifications, prepared by Consultant pursuant to this Agreement are not intended or represented to be suitable for reuse by City or others on any other project. Any use of completed Documents for other projects and any use of incomplete Documents without specific written authorization from Consultant will be at City's sole risk and without liability to Consultant. Further, any and all liability arising out of changes made to Consultant's deliverables under this Agreement by City or persons other than Consultant is waived against Consultant and City assumes full responsibility for such changes unless City has given Consultant prior notice and has received from Consultant written consent for such changes. 18. COMPUTER DELIVERABLES Consultant shall be providing the City with its SCOUT software package for the City/'s use without monthly maintenance fee for one year from date of installation. Consultant shall be responsible for insuring that it is compatible with City computer systems. Along with SCOUT the City is to receive Two Marketing (Pursuit) Packages at not cost. The City, at its sole option, may choose to subscribe to SCOUT at the end its initial use as cover by this agreement. The fee for continued subscription shall be One Thousand ($1,000) Dollars per month. 19. CONFIDENTIALITY All Documents, including drafts, preliminary drawings or plans, notes and communications that result from the services in this Agreement, shall be kept confidential unless City authorizes in writing the release of information. 20. INTELLECTUAL PROPERTY INDEMNITY The Consultant shall defend and indemnify City, its agents, officers, representatives and employees against any and all liability, including costs, for infringement of any United States' letters patent, trademark, or copyright infringement, including costs, contained in Consultant's drawings and specifications provided under this Agreement. 12 21. RECORDS Consultant shall keep records and invoices in connection with the work to be performed under this Agreement. Consultant shall maintain complete and accurate records with respect to the costs incurred under this Agreement and any services, expenditures and disbursements charged to City, for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Consultant under this Agreement. All such records and invoices shall be clearly identifiable. Consultant shall allow a representative of City to examine, audit and make transcripts or copies of such records and invoices during regular business hours. Consultant shall allow inspection of all work, data, Documents, proceedings and activities related to the Agreement for a period of three (3) years from the date of final payment to Consultant under this Agreement. 22. WITHHOLDINGS City may withhold payment to Consultant of any disputed sums until satisfaction of the dispute with respect to such payment. Such withholding shall not be deemed to constitute a failure to pay according to the terms of this Agreement. Consultant shall not discontinue work as a result of such withholding. Consultant shall have an immediate right to appeal to the City Manager or his/her designee with respect to such disputed sums. Consultant shall be entitled to receive interest on any withheld sums at the rate of return that City earned on its investments during the time period, from the date of withholding of any amounts found to have been improperly withheld. 23. ERRORS AND OMISSIONS In the event of errors or omissions that are due to the negligence or professional inexperience of Consultant which result in expense to City greater than what would have resulted if there were not errors or omissions in the work accomplished by Consultant, the additional design, construction and/or restoration expense shall be borne by Consultant. Nothing in this paragraph is intended to limit City's rights under the law or any other sections of this Agreement. 24. CITY'S RIGHT TO EMPLOY OTHER CONSULTANTS City reserves the right to employ other Consultants in connection with the Project. 25. CONFLICTS OF INTEREST The Consultant or its employees may be subject to the provisions of the California Political Reform Act of 1974 (the "Act"), which (1) requires such persons to disclose any financial interest that may foreseeably be materially affected by the work performed under this Agreement, and (2) prohibits such 13 10 persons from making, or participating in making, decisions that will foreseeably financially affect such interest. If subject to the Act, Consultant shall conform to all requirements of the Act. Failure to do so constitutes a material breach and is grounds for immediate termination of this Agreement by City. Consultant shall indemnify and hold harmless City for any and all claims for damages resulting from Consultant's violation of this Section. 26. NOTICES All notices, demands, requests or approvals to be given under the terms of this Agreement shall be given in writing, and conclusively shall be deemed served when delivered personally, or on the third business day after the deposit thereof in the United States mail, postage prepaid, first-class mail, addressed as hereinafter provided. All notices, demands, requests or approvals from Consultant to City shall be addressed to City at: Attn: Leigh M. De Santis Economic Development/Planning Department City of Newport Beach 3300 Newport Boulevard Newport Beach, CA, 92663 Phone: 949-644-3207 Fax: 949-644-3224 All notices, demands, requests or approvals from CITY to Consultant shall be addressed to Consultant at: Attention: David Glover, CFO 2651 South Polaris Drive Fort Worth, Texas 76137 Phone:817-332-3681 Fax:817-332-3686 27. TERMINATION In the event that either party fails or refuses to perform any of the provisions of this Agreement at the time and in the manner required, that parry shall be deemed in default in the performance of this Agreement. If such default is not cured within a period of two (2) calendar days, or if more than two (2) calendar days are reasonably required to cure the default and the defaulting party fails to give adequate assurance of due performance within two (2) calendar days after receipt of written notice of default, specifying the nature of such default and the steps necessary to cure such default, and thereafter diligently take steps to cure the default, the non -defaulting party may terminate the Agreement forthwith by giving to the defaulting party written notice thereof. 11 (q Notwithstanding the above provisions, City shall have the right, at its sole discretion and without cause, of terminating this Agreement at any time by giving seven (7) calendar days prior written notice to Consultant. In the event of termination under this Section, City shall pay Consultant for services satisfactorily performed and costs incurred up to the effective date of termination for which Consultant has not been previously paid. On the effective date of termination, Consultant shall deliver to City all reports, Documents and other information developed or accumulated in the performance of this Agreement, whether in draft or final form. 28. COMPLIANCE WITH ALL LAWS Consultant shall at its own cost and expense comply with all statutes, ordinances, regulations and requirements of all governmental entities, including federal, state, county or municipal, whether now in force or hereinafter enacted. In addition, all work prepared by Consultant shall conform to applicable City, county, state and federal laws, rules, regulations and permit requirements and be subject to approval of the Project Administrator and City. 29. WAIVER A waiver by either party of any breach, of any term, covenant or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant or condition contained herein, whether of the same or a different character. 30. INTEGRATED CONTRACT This Agreement represents the full and complete understanding of every kind or nature whatsoever between the parties hereto, and all preliminary negotiations and agreements of whatsoever kind or nature are merged herein. No verbal agreement or implied covenant shall be held to vary the provisions herein. 31. CONFLICTS OR INCONSISTENCIES In the event there are any conflicts or inconsistencies between this Agreement and the Scope of Services or any other attachments attached hereto, the terms of this Agreement shall govern. 32. INTERPRETATION The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of the Agreement or any other rule of construction which might otherwise apply. 33. AMENDMENTS This Agreement may be modified or amended only by a written document executed by both Consultant and City and approved as to form by the City Attorney. 15 12 3 3EVERABIL17Y u._c n_ -orceab;e n,./ a court of competent junsdlci?on, ine remaining Provisions r tills �creement shall continue in full force and e ieci. L8, CONTROLLING LAW AND VENUE The IawS Of, rile Stdle Of Ca)1fOmla shall GOVern this Agreement and 2)I iilalierS relating to it and any action brought relating to this Agreement shall ne adjudicated in a court of competent jurisdiction in the County of Orange. 36. EQUAL OPPORTUNITY EMPLOYMENT Consultant represents that it is an equal opportunity employer and it shall not '-liscrininate against any subcontractor. employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age, IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the day and year first written above. APPROVED AS TO FORM: City Attorney for the City of Newport Beach ATTEST: By: LaVonne Hark)ess, City Clerk CITY OF NEWPORT BEACH, A Municipal Corporation By: Mayor for the City of Newport Beach CONSULTANT: t ^i By: r ! '�x�l i/1 ��- �Corporate Officer) Title: N ti 'l, C) / Print Name:.i �� • ]r� yY1 y l:—r�l�� By: ',1 ea �' Financial Office Title: C•00 Print Name: CNF,ec W WE Z ti L A tachmenis: Exhibit A — Scope of Services Exhibit B — Schedule of Billing Rates U� 13 EXHIBIT A 17 Community/D® Proposal to Develop: A RETAIL ECONOMIC DEVELOPMENT STRATEGY For: City of Newport Beach, CA From: Lisa Hill May 15, 2008 i� INDEX EXECUTIVE SUMMARY INTRODUCTION TO BUXTON III. NEEDS/CHALLENGES IV. GOALS/DESIRED RESULTS V. PROCEDURES/SCOPE OF WORK VI, PROJECT TEAM VII. PROJECT REQUIREMENTS VIII. TIMELINE IX. FEES FOR SERVICES X. SIGNATURE PAGE (q Community/9 I. EXECUTIVE SUMMARY Buxton's CommunitylD® program is a total retail identification and marketing program designed for community economic development programs. Per this contract, Buxton agrees to analyze three (3) commercial villages and/or retail sub -areas in order to determine the overall retail potential for each. Buxton integrated proprietary technical capabilities with more than 500 cumulative years experience in retail management and local economic development to create Community/DO. This unique strategy has brought both innovation and a disciplined approach to municipal retail development efforts. Trade area, based on our drive -time methodology, will be determined for each commercial village. Psychographic analysis will be done for each trade area to determine buying power, lifestyle characteristics, and consumer profiles for customers within the trade area. In addition, market viability will be determined for each trade area to identify the most sustainable retail/restaurant concepts. A retail leakage and surplus analysis will be done to analyze gap and overlap in the market. An overall retail concept list will be provided for each studied site. The City of Newport Beach will then be asked to select the top six (6) desired concepts for each site for the creation of marketing packages. Buxton will design these packages on behalf of the City of Newport Beach in order to speak each specific retailer's language. The packages are tailored to fit the profile of the retailer, as it aligns with the City of Newport Beach. During the 60 business days it takes to complete CommunitylD', civic leaders are actively involved in the process and make important decisions that guide the direction and results. The four main phases of the process are: Researching and Verifying Newport Beach's Retail Trade Area This phase starts with the in-depth collection of the same location variables that Buxton uses to qualify locations for retail clients. Because of Buxton's unique capabilities, we can translate this retail -specific information into market intelligence that community leaders need to attract and grow their retail sectors. Evaluating Newport Beach's Retail Potential The evaluation phase will clarify what makes Newport Beach distinctive and valuable from a retailer's viewpoint. Through daily involvement in retail location analysis, Buxton has acquired the unmatched ability to evaluate a community's retail potential. Bumaon c.� zD Communitylff Matching Retailers and Restaurants to Newport Beach's Market Potential The consumer profile of Newport Beach's trade area will be matched against the customer profiles of over 5,000 retailers and restaurants in Buxton's proprietary database. The final match list is developed with the input of community leaders so that it reflects the needs and desires of the residents. Delivering Newport Beach's Marketing Packages Individual marketing (pursuit) packages for each retailer match are delivered in both hard copy and in SCOUT®. Our exclusive online marketing system, SCOUTO helps you to showcase your city in the best light. It gives you the ability to create presentations and quality documents and to share information in the match reports. With CommunitylD®,N ewport Beach can unleash its full retail potential, seize new retail opportunities and expand existing businesses. The signing of this agreement seals a lifetime partnership between the City of Newport Beach and Buxton. This agreement includes the following: . Admission to (6) webinars per year . An invitation to the Buxton reception with retail clients at ICSC . Permission to use the Buxton booth at ICSC to host meetings with potential retail concepts and the ability to distribute marketing materials to potential retailers and developers . On -going support for the life of the project 2.) Community/9 11. INTRODUCTION TO BUXTON Since our founding in 1994, Buxton has been a leading force in retail location and development. We are recognized for creating solutions that provide results. Buxton began as a service to help retaile decisions by understanding their customers markets. Buxton leaders soon realized that location and market analysis could also be desiring retail expansion. Please note that i inclusive of all retail concepts. CommunityfD® n rs make informed site selection and precisely determining their the company's expertise in retail leveraged to benefit communities this proposal the term "retail" is Designed specifically for use in community economic development programs, Buxton's Community/DO process has assisted more than 350 public sector clients nationwide, resulting in the development of more than 15 million square feet of retail space. We integrate our impressive technical capabilities with more than 500 cumulative years of retail management and local economic development experience to help municipalities achieve their retail goals. More than simply providing data, Community/D9 supplies custom marketing materials and strategies targeting the unique location requirements of retailers, developers and commercial real estate brokers. Community/DO clients achieve outstanding success using our tools for retail identification, selection and recruitment. And our clients benefit from our unique understanding of retail site selection from the retailer's point of view. The combination of technical expertise and professional guidance gives municipalities the capacity to immediately implement an effective retail development program. Benefits of Community/DO With Community/DO you have immediate access to: • Retail Industry Expertise. Gain a competitive position by working with professionals who have years of retail management experience plus current insights into your community and site selection processes and trends. • Community Development Best Practices. Expand and sharpen your retail development focus by incorporating best practices discovered by Buxton through daily work with municipalities across the nation. • Proprietary Systems. Gather useful information by having Buxton's technology specialists analyze your trade area accessing data stored on Buxton's in-house databases. Btraon Zz Community/Or • Personalized Content. Advance your retail recruitment program by receiving personal guidance from our staff and ongoing insight into key industry topics via our monthly e-newsletter, webcasts and other interactive tools. • Long -Term Partnership. As a Buxton client and partner you have unlimited access to our staff to help optimize your marketing efforts at the International Council of Shopping Centers (ICSC) annual meeting in Las Vegas, NV. • Marketing Data and Tools. Enhance your marketing messages and presentations by using SCOUT®, Buxton's online trade area database and marketing tool, available to you for one year after project delivery. • Add -On Research. Keep your Community/D9 updated and focused by getting special rates on additional research, including retail marketing packages and refreshes of basic information. 23 CommunityOr '�7i�..'`_-°'•e .___`f„c=._r.=:��'.'.._:=.I�_-"��a-_�.i:..���=.4=_%i_.�i:.1{�L'.::.:.., ..�1"_-i'.s-_li.k! III. NEEDS/CHALLENGES Newport Beach wants to understand and then capitalize on the retail development opportunities. As communities increasingly compete for retail dollars, attracting the attention of retailers has become more challenging than ever. Marketing your community plays a dominant role in today's competitive economy. The challenge for the community is to attract retailers and developers by providing trade area information that is complete, accurate and up-to-date. Using our proprietary methodologies, Buxton will collect and analyze your community's trade area information and give it to you in a format that is easy -to - use and appealing to real estate executives and developers. The best information, however, is useless without a plan for using it. Much more than data collection, CommunitylD® is an execution strategy that can help you build or revitalize your existing marketing and economic development program. With CommunitylD®,y ou will be prepared to: Achieve your retail potential by establishing a long-term partnership with Buxton • Integrate retail development into your economic development program • Increase your success by preparing Newport Beach to meet the needs of retailers • Effectively position your community by leveraging your locations' strengths and minimizing weaknesses Convey Newport Beach's advantages over competitors' advantages Establish credibility with retail decision makers Maximize time and resources by not pursuing unqualified prospects • Win the confidence and trust of prospects by understanding their priorities • Use competitive analysis to close the sale Btr�t®n' zy r COmmunitylU IV. GOALS AND DESIRED RESULTS The primary goal of Community/D@ is to prepare Newport Beach to successfully expand its retail sector. Community0v serves as the framework for developing a sustainable marketing program that not only achieves short-term goals but also endures to ensure the economic viability of the retail sector over the long-term. Such a marketing program will bring the following desired fesults: • Residents' desires to shop and dine at home will be fulfilled • Retail leakage will be minimized • Tax revenues (property and sale/use taxes) will increase • Employment opportunities will grow • Newport Beach's ability to capture other economic opportunities will be enhanced Z5 Community/9 V. PROCEDURES/SCOPE OF WORK Once you have engaged Buxton to work with you in developing Community/D, a project team will be assigned to guide you through the entire process —from initial data collection to final presentation of the results. This team consists of: Client services manager, Denise Barley, who will serve as your primary source of communication during the project Geographic Information System specialist, who will analyze your trade areas and create customized maps and reports Professionals with backgrounds as retail executives and economic development practitioners, who will address your unique challenges and help maximize Newport Beach's retail opportunities Staff Visits During visits to the community, Buxton's staff is able to make clear and candid assessments of the community's strengths, weaknesses and potential by using the same analytical programs and location matrixes that are used to qualify communities and sites for our retail clients. Our daily involvement with over 1,700 retail and restaurant clients in finding optimal locations keeps us current on retail location trends. This provides a rational and analytical basis for helping Newport Beach decide how to best focus resources on the most promising retail opportunities. Data Collection Buxton uses over 250 consumer and business databases that are updated throughout the year, and in some cases, every month. Although it is possible to obtain these databases for less expense on a community or regional basis, Buxton buys and is licensed to use the complete U.S. datasets. With this information Buxton will compare Newport Beach's potential location to the universe of all retail locations operating in the U.S. The following are some of the more well-known sources used in our studies, but there are dozens more that we employ to provide additional insight: • Mediamark • Acxiom • InfoUSA • Claritas • National Research Bureau • Navteq Geographic Data • Dunn & Bradstreet Business Data Z(0 Communitylg Identify Market Influencers All communities have special and often unique features that impact the local retail market and have to be taken into consideration to fully understand the market potential of the community. Such influencers include larger ethnic populations, significant new or expanded developments, military bases, universities and colleges, destination tourist attractions, prisons, medical facilities or major employers. After identifying these market influencers in your community, Buxton will quantify and qualify their influence on the retail market and help to match retailers that can capitalize on these customer bases. You will benefit from the project team's expertise and insight in these four areas: 1. Researching and verifying Newport Beach's retail trade area 2. Evaluating Newport Beach's retail potential 3. Matching retailers and restaurants to Newport Beach's market potential 4. Delivering Newport Beach's marketing packages These four major components comprise the Community/DO process. Each component is explained in detail as follows: 1. Researching and Verifying Newport Beach's Retail Trade Area The location decision process for all retailers begins with the collection, analysis and evaluation of numerous location variables such as demand density, customer buying habits, economic trends, competition, traffic volumes, and available sites, to name a few. The Community/00 process for Newport Beach will also start with the in-depth collection of data using the same location variables that we use for our retail clients to qualify sites for the location of their retail stores and restaurants. One goal is to define current retail situations in Newport Beach, in the trade area and in any neighboring communities that impact on Newport Beach's retail environment. The other goal is to understand the community's expectations and desires. This analysis includes personal visits to the community, collection of data components necessary to conduct the analysis and identification of market influencers. Bwagir Z7 r.. Community/ Drive -Time Trade Area Definition Customers today shop by convenience, measuring distance based on time, not mileage. Community/D® will employ a custom drive -time analysis to determine Newport Beach's trade area. An example of a drive -time trade area is shown in Figure1. This custom analysis is developed using an in-house database supported by our knowledge of individual retail client's actual trade areas. The resulting drive -time trade area map will be a polygon that more accurately depicts consumer shopping patterns than trade rings. To assure the accuracy of the drive -time trade area, the draft maps are reviewed with community leaders and verified before proceeding with the next step. Figure 1.Example - Drive -Time Trade Area Community/ 2. Evaluating Newport Beach's Retail Potential The purpose of the evaluation phase is to understand what makes Newport Beach distinctive and valuable from a retailer's viewpoint and scrutiny. Our evaluations capitalize on Buxton's knowledge about the retail marketplace and the location requirements and expectations of retailers. Combining this knowledge with our economic development competencies allow us to evaluate and recommend proven community practices. Our evaluations do not rely on dated government research or national/state statistics, all of which fail to reflect local realities. Rather, we implement our real -world experience gained from working with municipalities that have opened more than 15 million square feet of new or expanded retail space. We know how to help Newport Beach sharpen your retail marketing strategy, aggressively market the city and improve your competitive performance. Retail Leakage/Supply Analysis The Retail Leakage/Supply Analysis provides an estimate of retail dollars flowing in or out of the trade area. , The two main components of this analysis are: 1) current actual sales (supply)'by retail store type and products, in dollar amounts, and 2) estimated sales potential (demand) for retail store type and products, in dollar amounts. We first calculate a sales gap index that illustrates your ability to capture your residents' expenditures. An example of this index is shown in Figure 2. The sales gap index provides a relative comparison of leakage/surplus and an estimate of the dollars that are being spent outside the trade area (leakage) and the amount of dollars coming in from outside the trade area (surplus). This report can be run via SCOUT at any location within the map view. Figure 2.Example - Sale Gap Index 10 Zq Community/9 Customer Profiling The Community/DO process will identify and analyze all the households in Newport Beach's drive -time trade area. Based on more than 4,500 categories of lifestyles, purchase behaviors and media reading and viewing habits (psychographics), the households in your trade area are assessed to gain an understanding of the types of retailers that would be attracted to your community. Our in-house databases include both traditional demographic data and the most current psychographic lifestyle information for over 120 million households in the United States (as well as up to seven individuals living in each of these households). Each household in a trade area falls into one of 66 market segments reflecting the buying habits of customers in the household. The blue line in Figure 3 graphically profiles the households in a city's trade area. Figure 3: Example - Psychographic Profile O QAINU W i P d e 6 t] E 41Gs121?M751C161KTL"^.�.C3Ycvd69t+'°..�357'i'21x%2ia+{;4&k3ii5f665tS55'b'g3R2t5�3f/d'90 30 Community/9 Retail Site Assessment Buxton will analyze up to three (3).distinct retail locations, selected by Newport Beach. Based on our collective experience in retail locations, the following factors are considered: • Psychographic analysis of households in trade area • Demand for retail goods and services • Site setting, situation and configuration • Growth plans and relevant development • Retail goals of the community Newport Beach to select the retail site to be used for retail matching. Buxton will develop a demand density profile of Newport Beach's three (3) distinct trade areas. Demand density measures the bottom -line value of the customers in the trade area —who they are, how many there are and what they buy. One of the significant advantages of Buxton is our ability to take the demand density data and to creatively translate it into a proactive market strategy tailored to take advantage of -Newport Beach's strengths and to achieve its retail goals. 3. Matching Retailers and Restaurants to Newport Beach's Market Potential Once the consumer profiles in Newport Beach's trade area have been determined, the Community/Ds' process will match these profiles against the customer profiles of 5,000+ retailers in our proprietary database. In Figure 4, the blue line indicates the customer profile of households in a community's trade area. The red line represents a specific retailer's customer profile. A similarity between the two profiles as shown in Figure 4 analyzed using Buxton's proprietary retail matching algorithm concludes that this site is an opportunity for a specific retailer to open a successful store. This matching results in a list of possible retailers. To develop the preliminary retail match list, Buxton analyzes a number of factors about each possible retailer to qualify it. This analysis is designed to eliminate those retailers that for any reason would not be a candidate for Newport Beach. Considered in this analysis are such factors as, verification of a retailer currently operating or expanding into your market, location of operations in similar cities, and competition and cannibalization from nearby locations. Once this analysis is complete, the preliminary list of retailers will be discussed and reviewed with Newport Beach. Based on the selections by the sponsor, a final list of up to six (6) retailers, per site studied, will be created for the development of marketing (pursuit) packages. 3l Communitylg 4. Delivering Newport Beach's Marketing Packages Buxton will assemble individualized marketing (pursuit) packages for each targeted retailer. At Newport Beach's request, Buxton will customize each marketing package for presentation to individual retailers, developers, real estate brokers or potential franchisees. Because it is tailored to the specific needs of the target audience, each marketing package is ready to use as collateral marketing materials providing compelling and precise information that demonstrates Newport Beach's qualifications as a location. Each marketing package contains: 1. Map of the retail site and trade area 2. Map of retailer's potential customers 3. Retailer match report that compares the site's trade area characteristics with the retailer's locations in similar trade areas 4. Demographic and psychographic profiles of the households in the trade area 5. Contact information for the person at the retailer who has location decision responsibilities Community/DO targets not only specific companies but also the individual in the company who has the responsibility for location decisions. To provide the best possible reception when Newport Beach contacts the targeted retailer, Buxton notifies each company that Newport Beach has been qualified by Buxton as a potential viable location for a store, restaurant or development and should expect to be contacted by a representative of the city. Btraon 13 mmixryGcwxn,m 3z CommunitylOr Figure 5: Example - Retail Match Report (Retail Match Report summarizes a city's location advantages for a specific retailer). Buxton 14 33 7-,,,'Community/Dr 17r— _ Community/9 Retailer Match Report compmy: g1.2 Wnpzny Sit:: State Highway 321 A Gdce Ana kport Dart: 411WO05 Your community. USA Segmentation Proftletll (I5 Minute Drive time)PI i29' 0 — I � TMR l q� IT,, !I� 1I �I�I1�'1i�h,lepi�'r"�i1i11) 111R�,.. 1'i�� ,tt��li► .. �i� d�u. n Y] c a f l 6 a TJ]t!Y.a4if51BA }fa20e..S111aa]S�SYrS taY.]a]33i1SY+Rl!!Y�ta�]d211t1SOM14it9'AT.GY�S:SGf6E 9iYJ L' F4litaj.(G!2 Cwapany Profile pardnam 5eamelnspu ff E;;Ipmy NO3. IAN OW-4 Sepmetus) —Bier Mnl'kHti T" Thee Cam{arkm (IS Pro* Ores Lae) Your community, USA Ml eonpaay Site Wit Area Average Trade Area(G 100) Estimased 208E Proitcted Total Pap hIlm 43,925 44596 47,311 Total Houstbelds 17,278 11,917 19.503 Aettier Dom mot segment Households 9,772 IL270 13,612 Daytime (workday) Populloonf0 19.170 271140 29,527 +r5apmotaum Fronk EwYVA hEJunald It fti%I'xCd idoenemaGdahMlxcgnmru doceatl of r>m'•Ual'E�"atrr—tyla Rra 47rnCY�j hMsiw. t+Anvalima "rm5n: ncratlfotichneba Ua]E ama msho nnMSrea�anla Any nrarrnd rr]I vmir.UV c3bx%. nnnr Virandgiro falxaxfn ln9. aforan trXEU&n�YSp 4 AVIMOO7T tnnaa gojagoElR.xfhn Cna ana'G davr limgpRtlh RrRR (BLUE LkE1. TAvarapR 7ratlR A'aa %YE Ce.:aarypw%a CM24,na lE na<ernoum ara prripr mFwdo:lan and marY.d Ufa YntCaaxJndy, U9A, l40S]'IIiMP+rpa{WR A»numlardpxaa+w Emlhq]in la0drva daai fral afaS r...w ew,n+naav aam�r�4F, nmuw.]r�..�w..ssasr+.. rw.r.,am swr+�wrt•«,a Mcra 15 7q Community19 DELIVERABLES Community/D& deliverables will be presented to Newport Beach in two bound hard copies and in SCOUT®, an electronic format (described below). SCOUT® is an online marketing system that will allow you to effectively use Community/DO by enabling you to showcase your selected retail sites to achieve maximum results. You can access Community/DO reports via SCOUT® to reproduce maps, site -specific data and generate your own custom marketing presentations. With SCOUT® you are directly tied to Newport Beach password protected data, maintained and updated in Buxton's databanks. Using your computer you can tailor reports and presentations and immediately respond to questions or information requests from retailers or developers. SCOUT® allows you to: • Graphically display and count the households that appeal to specific target retailers • Manage all your retail -specific data, from maps to photos to zoning information, in a central location • Merge your community's existing marketing materials with Community/Ds • Select the information that best makes your case • Store and retrieve information on retail buildings and sites • Organize all relevant retail information in a central data center • Present all materials electronically to recruit retailers and developers Deliverables include the following: • Drive Time Trade Area Maps — Three (3) maps, one per site • Retail Site Assessment — includes Retail Leakage/Supply Analysis and Customer Profile for each of the three (3) sites studied • Retail Match Lists of overall retail opportunities for each of the three (3) areas, Newport Beach may select six (6) retailers per site (18 total) to build Pursuit Packages for recruiting efforts • Final Reports and Marketing (Pursuit) Packages - Newport Beach will receive two hard copies, a PDF version and each of the 18 marketing packages will be loaded onto SCOUT for the City's use • An electronic presentation highlighting the Community/DO process and findings will be a part of the deliverables. It is designed for local presentations to chambers of commerce, civic clubs and other groups interested in the retail development of Newport Beach. 16 35 Community./Dr Details about the Marketing (Pursuit) packages: The City of Newport Beach will receive a list over the overall retail opportunity for each of the 3 villages selected. Every retail/restaurant opportunity that is a match based on your customer picture will be provided for your review. Whether you have 30 or 3000 retail matches per site, we will give you a list of your entire retail opportunity. At that point, Buxton will allow the City of Newport Beach to select 6 Retailer per site (18 total) to build pursuit packages for the purpose of recruitment. The Pursuit package allows you to showcase your community to a specific retailer in a manner of relevance to them (customer data, market viability, trade area, square footage requirements, growth patterns, comparable markets and trade areas, etc). You will receive two hard copies of each package; in addition to a PDF version. Also, each of the 18 marketing packages will be loaded onto SCOUT for your use. 17 : ~ CommunitylD" VI. PROJECT TEAM Team members for your project will include Buxton personnel with strong retail and economic development backgrounds as well those from operations: the Territory Business Manager, appropriate Senior Vice President and Client Services representative. Lisa Hill Territory Business Manager CommunitylD® Division As a CommunitylD® territory business manager, Lisa works with municipalities in their retail economic development efforts. By understanding what retailers need to make site selection decisions, Lisa enables community leaders to understand and "speak retail." Prior to covering California, she focused on communities in Missouri and Kansas. Lisa brings a strong knowledge of the CommunitylD® retail economic development strategy and a solid background in client service to her position. Lisa received her B.A. degree from Texas Wesleyan University and is a member of the International Council of Shopping Centers (ICSC). G =Amy Wetzel Senior Vice President, CommunitylD& Division, Western Region Amy brings more than 15 years of marketing, retail and business development experience to her position. Prior to joining Buxton, Amy held positions with the Colleyville (Texas) Chamber of Commerce, Baylor Health Care System and Andersen. Amy has worked with numerous communities to establish or enhance their retail recruitment strategies and has been a featured presenter at many organizations, including the Association of Washington Cities, the Urban Land Institute, the National League of Cities, and the League of California Cities. She is a member of the California Association of Local Economic Developers, the California Redevelopment Association and the Association of Washington Cities. Amy holds a bachelor's degree in communications from Baylor University. 18 �, CommunitylY ,=^fd Philip Davis Manager/Senior GIs Analyst Community/DO Division As senior analyst for the Community/D9 division, Philip oversees every aspect of Community/D9 projects in Buxton's GIs department. His duties include supervising daily operations, working with clients, managing projects and serving as a liaison between analysts and the sales team. Philip has managed the GIs function for more than 350 Community/D® projects for such clients as San Jose, CA; Atlanta, GA.; and Birmingham, AL. Working on projects for two divisions in the company has given Philip a complete understanding of both the retail industry and municipal needs, adding to his expertise in community retail recruitment. Philip graduated from the University of North Texas with a degree in Geography. Bill R. Shelton, CEcD Partner Community/Ds' Division Bill is a founding partner of Community/D@, Buxton's retail development program for communities. For more than 20 years, Bill worked for the Fort Worth Chamber of Commerce, serving 16 years as its president. He is a Certified Economic Developer and is past chair of the American Economic Development Council. A founding member of the Texas Economic Development Council, he has served as the organization's president. Bill was honored with a lifetime membership to the International Economic Development Council. Bill's professional service also includes serving as dean of the Basic Economic Development Course at Texas A&M University. Bill holds a bachelor's degree in marketing from the University of Texas at Austin, and he completed post -graduate studies at Texas A&M University. Bur ton 19 N . Community19 Harvey H. Yamagata Chief Marketing Officer & President Community/D9 Division Clients benefit from the expertise Harvey has gained during 35 years in retail, including leadership roles in brick and mortar, catalog and website retailing. His 20-year career at Tandy Corporation covered the time when the company grew from $350 million to $3.5 billion in sales and took him from retailing in Europe to opening distributors in Asia. He headed the marketing efforts of the RadioShack Business Products division at a time when they held the major share in the burgeoning personal computer market. Harvey received a bachelor's degree from the University of Wisconsin and a master of business administration degree from Texas Christian University. Sq Community1 VII. PROJECT REQUIREMENTS To effectively initiate this project, we request that you provide the following: 1. Project Liaison • Newport Beach will designate a project manager (Lisa Hill) who will serve as Buxton's primary contact during the project. 2. Community Information and Reports • City logo (vector file — request your ad agency and/or printer) • Addresses and descriptive information for up to three sites that will be evaluated • Current traffic count data • List of planned retail, commercial or mixed use (either proposed or in development) in the community • List of major, national or regional retailers that have closed, left or moved from the community • General community marketing materials, data and economic reports Project Launch A conference call with representatives of Newport Beach and the Buxton Project Team will officially launch the project. The project launch will occur when: 1. An agreement is executed 2. The initial payment is received, and 3. The Community Information and Reports are received 21 L Communityl ,.. w VIII. TIMELINE The following timeline is sequential and cumulative. It starts on the day of the project launch conference call. Business Days Client Responsibilities Buxton Responsibilities Start Provide to Buxton all necessary community information. Day 1 Participate in the launch call. Participate in the launch call. Day 6 Trade Area Map ships. Day 13 Approve Trade Area Map. Retail Site Assessment Day 18 ships. Approve Retail Site Assessment Day 25 and submit selection of site for retail matching. Day 40 Retail Match List ships. Submit selections of all retail Day 50 matches to be included in the Final Report and Retail Marketing Packages. Da 60 Final Report and Retail y Marketing Packages ship. By adhering to this timeline, the CommunitylD& deliverables (Retail Match Reports — both the hard -copy and SCOUTO, the electronic version) will be sent on or before 60-days after the launch date. Any missed target dates can delay the final delivery date. If there are extenuating circumstances that prevent target dates from being met, a new timeline will be developed. Delays of more than 45 days in timeline schedule by the community will result in an administrative fee of five percent (5%) of the contract price to be charged. Lu Eoll 22 �►1 19"r Community/9 IX. FEE FOR SERVICES The Cost of Community/00 is $75,000; payable as follows: 1. $15,000 due upon execution of this agreement 2. $35,000 due upon delivery of retail site assessment 3. $25,000 due upon delivery of retail marketing packages Hard copies of all Community/Ds' deliverables including marketing packages will be provided. SCOUT® will be delivered for one-year with this agreement and includes the following: 1. Waived - Monthly maintenance fee of $1,000 per month 2. Two Marketing (Pursuit) Packages at no cost After the first year SCOUT® will be available for a $1,000 per month maintenance fee that is not included in this agreement. For services specifically requested by Newport Beach and performed by Buxton outside the scope of this agreement, an hourly rate of $200 will apply. Additional Research Services (post analysis) Marketing (Pursuit) Packages (Match reports for additional specific retailers) - Includes two bound hard copies and an electronic version $1,500 Be ton 23 Ll2 1RRIIXTnCnM ACORD,N CERTIFICATE OF LIABILITY INSURANCE 05/09106Dnrrvl PRODUCER Wortham Insurance & Risk Mgt 1600 West Seventh Street Fort Worth, TX 76102-2505 817 336.3030 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER, THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. INSURERS AFFORDING COVERAGE. NAIC # INSURED Buxton Company 2651 S. Polaris Drive Fort Worth, TX 76137 INSURERA. Continental Insurance Company 35289 INSURERS• Continental Casualty Company 20443 INSURERC- Valley Forge Insurance Company 20508 INSURERD. Federal Insurance Company 20281 INSURER E. National Fire Insurance Cc of Hartfo 20478 wv="v =Q THE POLICIES OF INSURANCE LISTED BELOW RAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS, NSR LTR ADD, WARN TYPE OF INSURANCE PODCY NUMBER POLICY EFFECTIVE DATE MMI POLICY EXPIRATION DATE MMIDO LIMITS A GENERAL LIABILITY X COMMERCIAL GENERAL LIABILITY 2093358583 07/13/07 07/13/08 EACH OCCURRENCE $1 000 000 DAMAGE TO RENTED s3DO BDU MED EXP (Any one person) $5 000 CLAIMS MADE O OCCUR PERSONAL &ADV INJURY $1 000 000 GENERAL AGGREGATE $2 0OO 000 GEN'L AGGREGATE LIMIT APPLIESPER: PRODUCTS -COMPIOP AGG $2000000 POLICY JEC 7LOC E AUTOMOBILE LIABILITY ANY AUTO 1079708301 07/13107 07/13/08 COMBINED SINGLE OMIT (Ea aaitleni) s1,000,000 X BODILY INJURY (Perperson) $ ALL OWNED AUTOS SCHEDULED AUTOS X HIRED AUTOS NON-CANNEDAUTOS BODILY INJURY (PeraccIdenl) $ X PROPERTY DAMAGE (Peraccidenl) $ GARAGE LIABILTTY AUTO ONLY - EA ACCIDENT $ OTHERTHAN EAACC AUTO ONLY: AGG $ ANY AUTO $ B EXCESSIUMBRELLAUABIUTY 2093460191 07/13/07 07/13/08 EACH OCCURRENCE $5000000 AGGREGATE $5 DOD 000 OCCUR CLAIMS MADE $ $ DEDUCTIBLE WCSTATU� T 5 $ C X RETENTION $10000 WORKERS COMPENSATION AND EMPLOYERS'LIABILIY CO20937771 DD 05/03109 05/03/09 E.L. EACH ACCIDENT I$1.000,000 OFFICERIMEM ERFXC UD D7�CUnVE EL.DISEASE -EAEMPLOYEE S1,000000 E.L. DISEASE -POLICY LIMIT $1 000,000 Ifyes. tlesa0e under SPECIAL PROVISIONS below D OTHER Professional 68017554 11111/07 11/11/08 3,000,000 DESCRIPTION OF OPERATIONS 1 LOCATIONS I VEHICLES I EXCLUSIONS ADDED BY ENDORSEMENT I SPECIAL PROVISIONS Blanket Additional Insured coverage is subject to a written contract between the Named Insured and City of Newport Beach,its elected or appointed officers, officials, employees, agents and volunteers that requires such status on the GL and Auto with a Blanket waiver of (See Attached Descriptions) CERTIFICATt HULUtK'--- SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION City of Newport Beach DATE THEREOF, THE ISSUING INSURER WILL ENDEAVORTO MAIL _ DAYSWRITTEN 3300 Newport Blvd NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO DO SO SHALL Newport.Beach,CA 92658-6915 IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OR REPRESENTATIVES. AUTHORIZED REPRESENTATIVE u mno ACORD25(2001/08)1 Of3 #S377501M3460B 713KKL QACORv,.v ^1"" L}3 IMPORTANT If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). DISCLAIMER The Certificate of Insurance on the reverse side of this form does not constitute a contract between the issuing insurer(s), authorized representative or producer, and the certificate holder, nor does it affirmatively or negatively amend, extend or alter the coverage afforded by the policies listed thereon. CANCELLATION NOTICE The CANCELLATION NOTICE on the CERTIFICATE OF INSURANCE is amended to Include the following wording: The Insurance Companies may cancel the described policy(ies) by mailing or delivering ten (10) days written notice of cancellation to the Named Insured for: (1) Non Payment of premium or (2) any other circumstance permitted by state law or policy conditions. ADDITIONIONAL INSURED DISCLAIMER Coverage for Additional Insureds can vary significantly from policy to policy and thus Additional Insured status does not guarantee protection for all losses. Coverage is subject to actual policy terms and conditions. ACORD 25S (2001108) 2 of 3 #S37750/M34608 D'E'SC:RIPTI'ONS ('Conli'nued from Pagel) subrogation coverage is subject to a written contract between the insured and certificate holder that requires such status on the GL, Auto, and WC. Primary and Non Contributory coverage applies to the General Liability. 30 Day Notice of Cancellation except 10 Day for Non Payment. dMS 25.3 MIMI= Retail Site Assessment July 2008 ...9 CommunitylD® Table of Contents a Summary........................................................................................................................... I NewportBeach's Villages.............................................................................................2 BalboaVillage Analysis.................................................................................................. 3 CanneryVillage Analysis...............................................................................................5 Brief Segment Descriptions Appendix A: Leakage Report Appendix B: Demographic Report Buxton CommunitylD Staff Lisa Hill, Territory Business Manager, Western Region, (hill@buxtonco.com Philip Davis, Manager/Senior GIS Analyst, pdavis@buxtonco.com Blake Smith, GIS Analyst, bsmith@buxtonco.com All Buxton personnel may be reached by phone at 817.332.3681 7 1 CommunitylD' Summary Buxton has reviewed the two villages provided by the City of Newport Beach on the basis of retail recruitment potential. This Retail Site Assessment booklet features maps of Balboa Village (Balboa Blvd & Main Street) and Cannery Village (Newport Blvd & 28' St) trade areas. Newport Beach is located approximately 50 miles South/South East of the city of Los Angeles in the greater Los Angeles area. Both Balboa Village and Cannery Village are located on the Newport Beach peninsula along the Pacific Coast. A review of the segmentation for Balboa Village's trade indicates a mixture of suburban and urban segmentation. The top 3 segments for the Balboa Village trade area are 7 (Money & Brains), I (Upper Crust) and 16 (Bohemian Mix). Cannery Village's trade area is primarily urban in nature. The top 3 segments for the Cannery Village's trade area are 7 (Money & Brains), 16 (Bohemian Mix) and 4 (Young Digerati). Both sites have a strong surplus of retail supply suggesting attractive retail trade areas that are bringing in outside dollars. Communitylg Newport Beach's Villages To begin the CommunitylD process, the City of Newport Beach selected Balboa Village (Balboa Blvd & Main Street) and Cannery Village (Newport Blvd & 28th St) to be analyzed for possible retail development or revitalization. To more fully understand the retail potential of the villages, Buxton conducted the following analyses: • A seven -minute primary trade area was delineated for each village • The customers in the trade areas were segmented according to buying habits and lifestyles • A profile of Newport Beach's customers within the trade areas were developed • The surplus and leakage for more than 36 product types and 74 store types was determined for each potential trade area The purpose of these analyses is to develop Newport Beach's Customer Profile. The Customer Profile is a snapshot of the customers that reside in Newport Beach's trade areas. Even though these consumers are complex and diverse, Buxton is able to capture and catalogue the extent to which potential demand for retailer's goods and services are concentrated in the trade areas. By overlaying Newport Beach's Customer Profile with over 4,500 retail matching profiles in Buxton's proprietary database, we are able to identify major categories of retail that are candidates for location at Newport Beach. This matching provides the basis for determining Newport Beach's viability to attract retailers and restaurants and forms the basis for Buxton's recommendations and conclusions. tj CommunitylU Balboa Village Analysis Drive -Time Trade Area The map on the opposite page depicts the trade area for Balboa Village. The trade area consists of a seven -minute polygon, determined by Buxton's proprietary drive -time technology. Psychographics The psychographic profile of the households within a seven -minute drive -time of Balboa Village is presented below. N.M Balboa Vlllano (Balboa Blvd & Main St) 1 3 5 9 9 11 13 15 17 19 21 M 8 39293133353739 41 43 45 47 49 51 53 55 57 59 61 0 0 &e .t Sam a Uwra., in 9Rlzv," NV 4.'W4 Dominant Segments A segment that represents at least three percent of a trade area is a dominant segment. Following is a description of the dominant segments for Balboa Village. Balboa Yllage (Balboa Blvd & Main St) Dominant Segments Description Households '% of Al Households I Upper Crust 3908 15A6 3 Movers & Shaken 2325 9.20 4 Young Digerati 3181 12.58 7 Money & Brains 6956 27.51 8 Execut' a Suites 1298 5.13 16 Bohemian Mix 3704 14.65 29 American Dreams 980 338 Saar Jw.n 1, :4tlzm",Nr ,� W 3 h0 1 Communityig Balboa Village Analysis (continued) Leakage Analysis The following table represents an overview by store type of the leakage or surplus within the studied trade area. This is represented by an index, with 1.0 being the baseline. A leakage is reflected by an index less than 1.0, and a surplus is reflected by an index greater than 1.0. Please see Appendix A for detailed demand and actual sales by category. I_ CommunitylU Cannery Village Analysis Drive -Time Trade Area The map on the opposite page depicts the trade area for Cannery Village. The trade area consists of a seven minute polygon, determined by Buxton's proprietary drive -time technology. Psychographics The psychographic profile of the households within a seven -minute drive -time of Cannery Village is presented below. e t 12r Cannery Village (Newport Blvd & 28th St) 1 3 5 3 9 11 13 15 13 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 53 57 59 61 63 65 &,..t C ur-. L'iniu,.lerc,fe12f4D tiE fi 2h6' Dominant Segments A segment that represents at least three percent of a trade area is a dominant segment. Following is a description of the dominant segments for Cannery Village. Cannery Village (Newport Blvd & 28th St) Dominant Segments Description Households '% of NI Households 4 Young Digerad 4672 ISA3 7 Money & Brains 8359 27.61 16 Bohemian Mix 4683 2108 26 The Cosmopolitans 1117 3.69 29 American Dreams 2271 730 31 Urban Achievers 2215 732 66 Low -Rise Living 1666 530 „ate_ �b ,nc 11.. P,n,N. flp ?N9 5 rL_ ' Community/U Cannery Village Analysis (continued) Leakage Analysis The following table represents an overview by store type of the leakage or surplus within the studied trade area. This is represented by an index, with 1.0 being the baseline. A leakage is reflected by an index less than 1.0, and a surplus is reflected by an index greater than 1.0. Please see Appendix A for detailed demand and actual sales by category. Community1n, Brief Segment Descriptions 0 UPPER CRUST — The nation's most exclusive address, Upper Crust is the wealthiest lifestyle in America —a haven for empty -nesting couples over 55 years old. No segment has a higher concentration of residents earning over $200,000 a year or possessing a postgraduate degree, and none has a more opulent standard of living. 2 BLUE BLOOD ESTATES — Blue Blood Estates is a family portrait of suburban wealth, a place of million -dollar homes and manicured lawns, high -end cars and exclusive private clubs. The nation's second -wealthiest lifestyle, it is characterized by married couples with children, college degrees, a significant percentage of Asian Americans and six - figure incomes earned by business executives, managers and professionals. 3 MOVERS & SHAKERS — Movers & Shakers is home to America's up-and-coming business class: a wealthy suburban world of dual -income couples who are highly educated, typically between the ages of 35 and 54, often with children. Given its high percentage of executives and white-collar professionals, there is a decided business bent to this segment: Movers & Shakers rank number one for owning a small business and having a home office. 4 YOUNG DIGERATI — Young Digerati are the nation's tech -savvy singles and couples living in fashionable neighborhoods on the urban fringe. Affluent, highly educated and ethnically mixed, Young Digerati communities are typically filled with trendy apartments and condos, fitness clubs and clothing boutiques, casual restaurants and all types of bars —from juice to coffee to microbrew. 5 COUNTRY SQUIRES — The wealthiest residents in exurban America live in Country Squires, an oasis for affluent Baby Boomers who have fled the city for the charms of small-town living. In their bucolic communities noted for their recently built homes on sprawling properties, the families of executives live in six -figure comfort. Country Squires enjoy country club sports like golf, tennis and swimming as well as skiing, boating and biking. 6 WINNER'S CIRCLE — Among the wealthy suburban lifestyles, Winner's Circle is the youngest, a collection of mostly 25- to 34-year-old couples with large families in new - money subdivisions. Surrounding their homes are the signs of upscale living: recreational parks, golf courses and upscale malls. With a median income of nearly $90,000, Winners Circle residents are big spenders who like to travel, ski, go out to eat, shop at clothing boutiques and take in a show. 7 MONEY & BRAINS — The residents of Money & Brains seem to have it all: high incomes, advanced degrees and sophisticated tastes to match their credentials. Many of these city dwellers —predominantly white with a high concentration of Asian Americans —are married couples with few children who live in fashionable homes on small, manicured lots. `I CommunitylU Brief Segment Descriptions 8 EXECUTIVE SUITES — Executive Suites consists of upper -middle-class singles and couples typically living just beyond the nation's beltways. Filled with significant numbers of Asian Americans and college graduates —both groups are represented at more than twice the national average —this segment is a haven for white-collar professionals drawn to comfortable homes and apartments within a manageable commute to downtown jobs, restaurants and entertainment. 9 BIG FISH, SMALL POND — Older, upper-class, college -educated professionals, the members of Big Fish, Small Pond are often among the leading citizens of their small- town communities. These upscale, empty -nesting couples enjoy the trappings of success, belonging to country clubs, maintaining large investment portfolios and spending freely on computer technology. 10 SECOND CITY ELITE — There's money to be found in the nation's smaller cities, and you're most likely to find it in Second City Elite. The residents of these satellite cities tend to be prosperous executives who decorate their $200,000 homes with multiple computers, large -screen TV sets and an impressive collection of wines. With more than half holding college degrees, Second City Elite residents enjoy cultural activities — from reading books to attending theater and dance productions. I I GOD'S COUNTRY — When city dwellers and suburbanites began moving to the country in the 1970's, God's Country emerged as the most affluent of the nation's exurban lifestyles. Today, wealthier communities exist in the hinterlands, but God's Country remains a haven for upper -income couples in spacious homes. Typically college -educated Baby Boomers, these Americans try to maintain a balanced lifestyle between high -power jobs and laid-back leisure. 12 BRITE LITES, LIT CITY — Not all of the America's chic sophisticates live in major metros. Brite Lights, U'I City is a group of well-off, middle-aged couples settled in the nation's satellite cities. Residents of these typical double income, no kids households have college educations, well -paying business and professional careers and swank homes filled with the latest technology. 13 UPWARD BOUND — More than any other segment, Upward Bound appears to be the home of those legendary Soccer Moms and Dads. In these small satellite cities, upper-class families boast dual incomes, college degrees and new split-levels and colonials. Residents of Upward Bound tend to be kid -obsessed, with heavy purchases of computers, action figures, dolls, board games, bicycles and camping equipment. 14 NEW EMPTY NESTS — With their grown-up children recently out of the house, New Empty Nests is composed of upscale older Americans who pursue active —and activist— lifestyles. Nearly three-quarters of residents are over 65 years old, but they show no interest in a rest -home retirement. This is the top -ranked segment for all- inclusive travel packages; the favorite destination is Italy. 8 4 rt h CommunitylD, 050 , Brief Segment Descriptions 15 POOLS & PATIOS — Formed during the postwar Baby Boom, Pools & Patios has evolved from a segment of young suburban families to one for mature, empty -nesting couples. In these stable neighborhoods graced with backyard pools and patios —the highest proportion of homes were built in the 1960's—residents work as white-collar managers and professionals, and are now at the top of their careers. 16 BOHEMIAN MIX — A collection of young, mobile urbanites, Bohemian Mix represents the nation's most liberal lifestyles. Its residents are a progressive mix of young singles and couples, students and professionals, Hispanics, Asians, African -Americans and whites. In their funky row houses and apartments, Bohemian Mixers are the early adopters who are quick to check out the latest movie, nightclub, laptop and microbrew. 17 BELTWAY BOOMERS — The members of the postwar Baby Boom are all grown up. Today, these Americans are in their forties and fifties, and one segment of this huge cohort —college -educated, upper -middle-class and home -owning —is found in Beltway Boomers. Like many of their peers who married late, these Boomers are still raising children in comfortable suburban subdivisions, and they're pursuing kid -centered lifestyles. 18 KIDS & CUL-DE-SACS — Upscale, suburban, married couples with children is the description of Kids & Cul-de-Sacs, an enviable lifestyle of large families in recently built subdivisions. With a high rate of Hispanic and Asian Americans, this segment is a refuge for college -educated, white-collar professionals with administrative jobs and upper -middle-class incomes. Their nexus of education, affluence and children translates into large outlays for child -centered products and services. 19 HOME SWEET HOME — Widely scattered across the nation's suburbs, the residents of Home Sweet Home tend to be upper -middle-class married couples living in mid- sized homes with few children. The adults in the segment, mostly between the ages of 25 and 54, have gone to college and hold professional and white-collar jobs. With their upscale incomes and small families, these folks have fashioned comfortable lifestyles, filling their homes with toys, TV sets and pets. 20 FAST -TRACK FAMILIES — With their upper -middle-class incomes, numerous children and spacious homes, Fast -Track Families are in their prime acquisition years. These middle-aged parents have the disposable income and educated sensibility to want the best for their children. They buy the latest technology with impunity: new computers, DVD players, home theater systems and video games. They take advantage of their rustic locales by camping, boating and fishing. E .. _ CommunitylD° ref Brief Segment Descriptions 21 GRAY POWER — The steady rise of older, healthier Americans over the past decade has produced one important by-product middle-class, home -owning suburbanites who are aging in place rather than moving to retirement communities. A segment of older, mid -scale singles and couples who live in quiet comfort, Gray Power reflects this trend. 22 YOUNG INFLUENTIALS — Once known as the home of the nation's yuppies, Young Influentials reflects the fading glow of acquisitive yuppiedom. Today, the segment is a common address for young, middle-class singles and couples who are more preoccupied with balancing work and leisure pursuits. Having recently left college dorms, they now live in apartment complexes surrounded by ball fields, health clubs and casual -dining restaurants. 23 GREENBELT SPORTS — A segment of middle-class exurban couples, Greenbelt Sports is known for its active lifestyle. Most of these middle-aged residents are married, college -educated and own new homes; about a third have children. And few segments have higher rates for pursuing outdoor activities such as skiing, canoeing, backpacking, boating and mountain biking. 24 UP-AND-COMERS — Up -and -Comers is a stopover for young, mid -scale singles before they marry, have families and establish more deskbound lifestyles. Found in second -tier cities, these mobile twenty -somethings include a disproportionate number of recent college graduates who are into athletic activities, the latest technology and nightlife entertainment. 25 COUNTRY CASUALS — There's a laid-back atmosphere in Country Casuals, a collection of middle-aged, upper -middle-class households that have started to empty - nest. Workers here —and most households boast two earners —have well -paying blue- or white-collar jobs, or own small businesses. Today these Baby -Boom couples have the disposable income to enjoy traveling, owning timeshares and going out to eat. 26 THE COSMOPOLITANS — Educated, mid -scale and multi -ethnic, The Cosmopolitans are urbane couples in America's fast-growing cities. Concentrated in a handful of metros —such as Las Vegas, Miami and Albuquerque —these households feature older home -owners, empty -nesters and college graduates. A vibrant social scene surrounds their older homes and apartments, and residents love the nightlife and enjoy leisure - intensive lifestyles. 27 MIDDLEBURG MANAGERS — Middleburg Managers arose when empty -nesters settled in satellite communities which offered a lower cost of living and more relaxed pace. Today segment residents tend to be middle-class and over 55 years old with solid managerial jobs and comfortable retirements. In their older homes, they enjoy reading, playing musical instruments, indoor gardening and refinishing furniture. 10 .]y ..a i r•, {J'.4S{ _ ] Community/9 J Brief Segment Descriptions 28 TRADITIONAL TIMES — Traditional Times is the kind of lifestyle where small-town couples nearing retirement are beginning to enjoy their first empty -nest years. Typically in their fifties and sixties, these middle-class Americans pursue a kind of granola -and -grits lifestyle. On their coffee tables are magazines with titles ranging from Country Living and Country Home to Gourmet and Forbes. But they're big travelers, especially in recreational vehicles and campers. 29 AMERICAN DREAMS — American Dreams is a living example of how ethnically diverse the nation has become: more than half the residents are Hispanic, Asian or African -American. In these multilingual neighborhoods --one in ten residents speaks a language other than English —middle-aged immigrants and their children live in middle- class comfort. 30 SUBURBAN SPRAWL — Suburban Sprawl is an unusual American lifestyle: a collection of mid -scale, middle-aged singles and couples living in the heart of suburbia. Typically members of the Baby Boom generation, they hold decent jobs, own older homes and condos, and pursue conservative versions of the American Dream. Among their favorite activities are jogging on treadmills, playing trivia games and renting videos. 31 URBAN ACHIEVERS — Concentrated in the nation's port cities, Urban Achievers is often the first stop for up-and-coming immigrants from Asia, South America and Europe. These young singles and couples are typically college -educated and ethnically diverse: about a third are foreign -born, and even more speak a language other than English. 32 NEW HOMESTEADERS — Young, middle-class families seeking to escape suburban sprawl find refuge in New Homesteaders, a collection of small rustic townships filled with new ranches and Cape Cods. With decent -paying jobs in white-collar and service industries, these dual -income couples have fashioned comfortable, child -centered lifestyles, their driveways filled with campers and powerboats, their family rooms with PlayStations and Game Boys. 33 BIG SKY FAMILIES — Scattered in placid towns across the American heartland, Big Sky Families is a segment of young rural families who have turned high school educations and blue-collar jobs into busy, middle-class lifestyles. Residents like to play baseball, basketball and volleyball in addition to going fishing, hunting and horseback riding. To entertain their sprawling families, they buy virtually every piece of sporting equipment on the market. 34 WHITE PICKET FENCES — Midpoint on the socioeconomic ladder, residents in White Picket Fences look a lot like the stereotypical American household of a generation ago: young, middle-class, married with children. But the current version is characterized by modest homes and ethnic diversity —including a disproportionate number of Hispanics and African -Americans. 11 Community/U f ' Brief Segment Descriptions 35 BOOMTOWN SINGLES — Affordable housing, abundant entry-level jobs and a thriving singles scene— all have given rise to the Boomtown Singles segment in fast-growing satellite cities. Young, single and working-class, these residents pursue active lifestyles amid sprawling apartment complexes, bars, convenience stores and laundromats. 36 BLUE-CHIP BLUES — Blue -Chip Blues is known as a comfortable lifestyle for young, sprawling families with well -paying blue-collar jobs. Ethnically diverse —with a significant presence of Hispanics and African -Americans —the segment's aging neighborhoods feature compact, modestly priced homes surrounded by commercial centers that cater to child -filled households. 37 MAYBERRY-VILLE — Like the old Andy Griffith Show set in a quaint picturesque berg, Mayberry-ville harks back to an old-fashioned way of life. In these small towns, middle-class couples and families like to fish and hunt during the day, and stay home and watch TV at night. With lucrative blue-collar jobs and moderately priced housing, residents use their discretionary cash to purchase boats, campers, motorcycles and pickup trucks. 38 SIMPLE PLEASURES — With more than two-thirds of its residents over 65 years old, Simple Pleasures is mostly a retirement lifestyle: a neighborhood of lower -middle-class singles and couples living in modestly priced homes. Many are high school -educated seniors who held blue-collar jobs before their retirement, and a disproportionate number served in the military; no segment has more members of veterans clubs. 39 DOMESTIC DUOS — Domestic Duos represents a middle-class mix of mainly over-55 singles and married couples living in older suburban homes. With their high-school educations and fixed incomes, segment residents maintain an easy-going lifestyle. Residents like to socialize by going bowling, seeing a play, meeting at the local fraternal order or going out to eat. 40 CLOSE -IN COUPLES — Close -In Couples is a group of predominantly African - American couples living in older homes in the urban neighborhoods of mid -sized metros. High school educated and empty nesting, these 55-year-old-plus residents typically live in older city neighborhoods, enjoying secure and comfortable retirements. 41 SUNSET CITY BLUES — Scattered throughout the older neighborhoods of small cities, Sunset City Blues is a segment of lower -middle-class singles and couples who have retired or are getting close to retirement. These empty -nesters tend to own their homes but have modest educations and incomes. They maintain a low-key lifestyle filled with newspapers and television by day, and family -style restaurants at night. 12 { Community/U � 4;�, Brief Segment Descriptions 42 RED, WHITE & BLUES — The residents of Red, White & Blues typically live in exurban towns rapidly morphing into bedroom suburbs. Their streets feature new fast-food restaurants, and locals have recently celebrated the arrival of chains like Wal-Mart, Radio Shack and Payless Shoes. Middle-aged, high school educated and lower -middle class, these folks tend to have solid, blue-collar jobs in manufacturing, milling and construction. 43 HEARTLANDERS — America was once a land of small middle-class towns, which can still be found today among Heartlanders. This widespread segment consists of middle- aged couples with working-class jobs living in sturdy, unpretentious homes. In these communities of small families and empty -nesting couples, Heartlanders pursue a rustic lifestyle where hunting and fishing remain prime leisure activities along with cooking, sewing, camping and boating. 44 NEW BEGINNINGS — Filled with young, single adults, New Beginnings is a magnet for adults in transition. Many of its residents are twenty -something singles and couples just starting out on their career paths —or starting over after recent divorces or company transfers. Ethnically diverse —with nearly half its residents Hispanic, Asian or African -American —New Beginnings households tend to have the modest living standards typical of transient apartment dwellers. 45 BLUE HIGHWAYS — On maps, blue highways are often two-lane roads that wind through remote stretches of the American landscape. Among lifestyles, Blue Highways is the standout for lower -middle-class couples and families who live in isolated towns and farmsteads. Here, Boomer men like to hunt and fish; the women enjoy sewing and crafts, and everyone looks forward to going out to a country music concert. 46 OLD GLORIES — Old Glories are the nation's downscale suburban retirees, Americans aging in place in older apartment complexes. These racially mixed households often contain widows and widowers living on fixed incomes, and they tend to lead home -centered lifestyles. They're among the nation's most ardent television fans, watching game shows, soaps, talk shows and newsmagazines at high rates. 47 CITY STARTUPS — In City Startups, young, multi -ethnic singles have settled in neighborhoods filled with cheap apartments and a commercial base of cafes, bars, laundromats and clubs that cater to twenty -somethings. One of the youngest segments in America —with ten times as many college students as the national average —these neighborhoods feature low incomes and high concentrations of Hispanics and African -Americans. 13 Community19 Brief Segment Descriptions 0 48 YOUNG & RUSTIC — Like the soap opera that inspired its nickname, Young & Rustic is composed of young, restless singles. Unlike the glitzy soap denizens, however, these folks tend to be lower income, high school -educated and live in tiny apartments in the nation's exurban towns. With their service industry jobs and modest incomes, these folks still try to fashion fast -paced lifestyles centered on sports, cars and dating. 49 AMERICAN CLASSICS — They may be older, lower -middle class and retired, but the residents of American Classics are still living the American Dream of home ownership. Few segments rank higher in their percentage of home owners, and that fact alone reflects a more comfortable lifestyle for these predominantly white singles and couples with deep ties to their neighborhoods. 50 KID COUNTRY, USA — Widely scattered throughout the nation's heartland, Kid Country, USA is a segment dominated by large families living in small towns. Predominantly white with an above -average concentration of Hispanics, these young working-class households include homeowners, renters and military personnel living in base housing; about 20 percent of residents own mobile homes. 51 SHOTGUNS & PICKUPS — The segment known as Shotguns & Pickups came by its moniker honestly: it scores near the top of all lifestyles for owning hunting rifles and pickup trucks. These Americans tend to be young, working-class couples with large families —more than half have two or more kids —living in small homes and manufactured housing. Nearly a third of residents live in mobile homes, more than any other segment. 52 SUBURBAN PIONEERS — Suburban Pioneers represents one of the nation's eclectic lifestyles, a mix of young singles, recently divorced and single parents who have moved into older, inner -ring suburbs. They live in aging homes and garden -style apartment buildings where the jobs are blue-collar and the money is tight. What unites these residents —a diverse mix of whites, Hispanics and African -Americans —is a working- class sensibility and an appreciation for their off -the -beaten -track neighborhoods. 53 MOBILITY BLUES — Young singles and single parents make their way to Mobility Blues, a segment of working-class neighborhoods in America's satellite cities. Racially mixed and under 25 years old, these transient Americans tend to have modest lifestyles due to their lower -income blue-collar jobs. Surveys show they excel in going to movies, playing basketball and shooting pool. 54 MULTI-CULTI MOSAIC — An immigrant gateway community, Multi-Culti Mosaic is the urban home for a mixed populace of younger Hispanic, Asian and African -American singles and families. With nearly a quarter of the residents foreign born, this segment is a Mecca for first -generation Americans who are striving to improve their lower - middle -class status. 14 Community/U Brief Segment Descriptions 55 GOLDEN PONDS — Golden Ponds is mostly a retirement lifestyle, dominated by downscale singles and couples over 65 years old. Found in small bucolic towns around the country, these high school -educated seniors live in small apartments on less than $25,000 a year; one in five resides in a nursing home. For these elderly residents, daily life is often a succession of sedentary activities such as reading, watching TV, playing bingo and doing craft projects. 56 CROSSROADS VILLAGERS — With a population of middle-aged, blue-collar couples and families, Crossroads Villagers is a classic rural lifestyle. Residents are high school - educated with lower -middle incomes and modest housing; one -quarter live in mobile homes. There's an air of self-reliance in these households as Crossroads Villagers help put food on the table through fishing, gardening and hunting. 57 OLD MILLTOWNS — America's once -thriving mining and manufacturing towns have aged —as have the residents in Old Militowns communities. Today, the majority of residents are retired singles and couples living on downscale incomes in pre-1960 homes and apartments. For leisure they enjoy gardening, sewing, socializing at veterans clubs or eating out at casual restaurants. 58 BACK COUNTRY FOLKS — Strewn among remote farm communities across the nation, Back Country Folks are a long way away from economic paradise. The residents tend to be poor, over 55 years old and living in older, modest -sized homes and manufactured housing. Typically, life in this segment is a throwback to an earlier era when farming dominated the American landscape. 59 URBAN ELDERS — For Urban Elders —a segment located in the downtown neighborhoods of such metros as New York, Chicago, Las Vegas and Miami —life is often an economic struggle. These communities have high concentrations of Hispanics and African -Americans and tend to be downscale, with singles living in older apartment rentals. 60 PARK BENCH SENIORS — Park Bench Seniors are typically retired singles living in the racially mixed neighborhoods of the nation's satellite cities. With modest educations and incomes, these residents maintain low-key, sedentary lifestyles. Theirs is one of the top -ranked segments for TV viewing, especially daytime soaps and game shows. 61 CITY ROOTS — Found in urban neighborhoods, City Roots is a segment of lower - income retirees, typically living in older homes and duplexes they've owned for years. In these ethnically diverse neighborhoods —more than a third are African -American and Hispanic —residents are often widows and widowers living on fixed incomes and maintaining low-key lifestyles. 15 r�`c_�i Community/U Brief Segment Descriptions 62 HOMETOWN RETIRED — With three-quarters of all residents over 65 years old, Hometown Retired is one of the oldest segments. These racially mixed seniors tend to live in aging homes —half were built before 1958—and typically get by on social security and modest pensions. Because most never made it beyond high school and spent their working lives at blue-collar jobs, their retirements are extremely modest. 63 FAMILY THRIFTS — The small -city cousins of inner-city districts, Family Thrifts contain young, ethnically diverse parents who have lots of children and work entry-level service jobs. In these apartment -filled neighborhoods, visitors find the streets jam- packed with babies and toddlers, tricycles and basketball hoops, Daewoos and Hyundais. 64 BEDROCK AMERICA — Bedrock America consists of young, economically challenged families in small, isolated towns located throughout the nation's heartland. With modest educations, sprawling families and blue-collar jobs, many of these residents struggle to make ends meet. One quarter live in mobile homes. One in three has not finished high school. Rich in scenery, Bedrock America is a haven for fishing, hunting, hiking and camping. 65 BIG CITY BLUES — With a population that's half Latino, Big City Blues has the highest concentration of Hispanic Americans in the nation, but it's also the multi -ethnic address for downscale Asian and African -American households occupying older inner city apartments. Concentrated in a handful of major metros, these young singles and single -parent ,families face enormous challenges: low incomes, uncertain jobs and modest educations. More than 40% haven't finished high school. 66 LOW-RISE LIVING — The most economically challenged urban segment, Low -Rise Living is known as a transient world for young, ethnically diverse singles and single parents. Home values are low —about half the national average —and even then, less than a quarter of residents can afford to own real estate. Buxton utilizes the Claritae PRIZM°NE segmentation system in this analysis. PRIZM°NE and Claritas® are registered trademarks of Claritas Inc. The PRIZM segment nicknames (e.g., "Blue Blood Estates," Big Sky Families," "Country Squires") are trademarks of Claritas Inc. i[l Appendix A: Leakage Analysis Bmton Retail Leakage and Surplus Analysis The Retail Leakage and Surplus Analysis examines the quantitative aspect of the community's retail opportunities. It is a guide to understanding retail opportunities but it is not an analysis that indicates unconditional opportunities. The analysis Is sometimes called "a gap analysis" or "a supply and demand analysis" and can aid in the following: 'Indicating how well the retail needs of local residents are being met 'Uncovering unmet demand and possible opportunities 'Understanding the strengths and weaknesses of the local retail sector 'Measuring the difference between actual and potential retail sales Understanding Retail Leakage Retail leakage means that residents are spending more for products than local businesses capture. Retail sales leakage suggests that there is unmet demand in the trade area and that the community can support additional store space for that type of business. However, retail leakage does not necessarily translate into opportunity. For example, there could be a strong competitor in a neighboring community that dominates the market for that type of product or store. Understanding Retail Surplus A retail surplus means that the community's trade area is capturing the local market plus attracting non -local shoppers. A retail surplus does not necessarily mean that the community cannot support additional business. Many communities have developed strong clusters of stores that have broad geographic appeal. Examples of these types of retailers include: sporting goods stores, home furnishing stores, restaurants, and other specialty operations that become destination retailers and draw customers from outside the trade area. Examining the quantitative aspects (Leakage/Surplus) is only part of the evaluation of community's retail opportunities. Before any conclusions can be drawn about potential business expansion or recruitment opportunities, qualitative considerations such as trade area psychographics and buying habits must be analyzed in context of other market factors. Site Address Leakage/Surplus Index l Groceries and Other Foods - Meals and Snacks --�-- Alcoholic Drinks ------ Packaged Liquor/Wine/Beer - Cigars, Cigarettes, and Tobacco & Smokers Accessories — Drugs, Health Aids, and Beauty Aids Soaps, Detergents, and Household Cleaners Paper and Related Products - Mens Wear -- Womens, Juniors, and Misses Wear - `': Chlldrehs Wear -- Footwear - Sewing, Knitting, and Needlework Goods -- Curtains, Draperies, Blinds, Slipcovers etc --- Major Household Appliances Small Electric Appliances Televisions, Video Recorders, Video Cameras Audio Equipment, Musical Instruments, and Supplies - Furniture and Sleep Equipment — Flooring & Floor Coverings Computer Hardware, Software and Supplies -- Kitchenware and Home furnishings Jewelry -- ---- Books Photographic Equipment &Supplies Toys, Hobby Goods, and Games - Optical Goods - Sporting Goods --- Hardware Tools, and Plumbing and Electrical Supplies - Lumber and Building Materials -.-�-� Paint and Sundries-� Cars, Trucks, and Other Powered Transportation - -- Automotive Fuels Automotive Lubricants •---w Pets, Pet Foods, and Pet Supplies -- All OtherMarch andise luct Category � r , , � I r , The sales potential and the actual sales potential by product category and the resulting index are shown in Figure 2. Il•Iraall K1FLltresin BII Groceries and Other Foods 62,961,908 80,268,046 1.3 Meals and Snacks 57,127,279 174;997,738 3.1 Alcoholic Drinks 8,289,899 17,531,687 2.1 Packaged Liquor/Wine/Beer 10,001,536 7,825,376 0.8 Cigars, Cigarettes, and Tobacco & Smokers Accessories 3,878,746 7,485,334 1.9 Drugs, Health Aids, and Beauty Aids 31,471,220 44,305,863 1.4 Soaps, Detergents, and Household Cleaners 2,827,432 4,786,034 1.7 Paper and Related Products 3,407,960 3,714,379 1.1 Mens Wear 12,004,034 26,204,585 2.2 Womens, Juniors, and Misses Wear 22,108,527 76,731,466 33 Chlidrens Wear 3,279,697 13,244,125 4.0 Footwear 7,332,075 14,725,998 2.0 Sewing, Knitting, and Needlework Goods 1,009,649 1,265,681 1.3 Curtains, Draperies, Blinds, Slipcovers etc. 4,868,334 8,035,299 1.7 Major Household Appliances 3,749,078 4,227,320 1.1 Small Electric Appliances 1,789,609 2;077,221 1.2 Televisions, Video Recorders, Video Cameras 4,670,025 6,561,391 1.4 Audio Equipment, Musical, Instruments, and Supplies 7,403,588 9,394,234 1.3 Furniture and Sleep Equipment 12,123,051 14,706,403 1.2 Flooring & Floor Coverings 4,141,981 12,282,742 310 Computer Hardware, Software and Supplies 15,411,478 34,888,237 2.3 Kitchenware and Home furnishings 10,116,261 14,932,711 1.5 Jewelry 11,517,750 25,063,267 2.2 Books 4,446,441 3,022,911 0.7 Photographic Equipment & Supplies 1,593,248 2,313,877 1.5 Toys, Hobby Goods, and Games 4,520,156 7,501,941 1.7 Optical Goods 1,383,784 1,222,599 0.9 Sporting Goods 9,251,029 20,120,817 2.2 Hardware Tools, and Plumbing and Electrical Supplies 27,475,111 15,093,279 0.6 Lumber and Building Materials 20,859,900 6,728,490 0.3 Paint and Sundries 3,914,355 832,948 0.2 Cars, Trucks, and Other Powered Transportation 70,444,591 185,133,800 2.6 Automotive Fuels 38,394,795 28,084,056 0.7 Automotive Lubricants 14,430,675 13,077,702 0.9 Pets, Pet Foods, and Pet Supplies 2,187,853 4,592,266 2.1 All Other Merchandise 21,329,409 33,906,878 1.6 DrvID1 Balboa Blvd & Main St Newport Beach, CA 92661 Leakage/Surplus Index by Major Store Type 7 Minute Drive Time The quantitative comparison of retail leakage and surplus in the twelve major store types shown in the chart and table below provides an initial measure of market opportunities. Combining this analysis with the knowledge of the local retail situation Will take the process of identifying retail possibilities one step further. Figure 3 provides the leakage/surplus indices and following is the sales potential and actual sales for major store types. Motor Vehicle & Parts Dealers 91,238,256 218,953,574 2.40 Furniture & Home Furnishings Stores 17,338,315 34,734,372 2.00 Electronics & Appliances Stores 15,102,348 23,705,910 1.57 Building Material & Garden Equipment & Supply Dealers 48,943,268 14,515,969 0.30 Food & Beverage Stores 55,896,284 90,290,910 1.62 Health & Personal Care Stores 24,443,584 21,581,208 0.88 Clothing & Clothing Accessories Stores 29,829,916 106,297,145 3.56 Sporting Goods, Hobby, Book, & Music Stores 12,187,973 12,753,850 1.05 General Merchandise Stores 65,223,238 77,228,696 1.18 Miscellaneous Store Retailers 15,889,014 28,535,766 1.80 Foodservice & Drinking Places 60,339,644 184,242,226 3.05 GAFO 146,539,363 264,083,550 1.80 (Total Retail Sales (Including Food Service & Drinking Places) 521,722,483 926,886,734 1.78 1 " GAFO refers to discount retailers that typically Include the following departments: general merchandise; clothing and clothing accessories; furniture and home furnishings; electronics and appliances; sporting goods, hobby, books and music; and office supplies. Leakage/Surplus Analysis by Sub -Categories of Major Retail Types Additional leakage/surplus details are provided on subcategories of stores in each of the twelve major store types. These details can help further identity possible business expansion opportunities. Automotive Dealers Other Motor Vehicle Dealers Parts, Accessories, &Tire Stores Vehicle & Parts Dealers 77,565,702 6,468,509 7,204,044 91,238,256 190,667,006 2.46 27,404,221 4.24 882,346 0.12 Electronics Appliance Stores Potential Actual Sales Leakage/Surplus Index Household Appliances Stores 2,138,837 478,768 0.22 Radio Television and Other Electronics Stores 9,241,855 12,580,459 1.36 Appliance, Television, and Other Electronics Stores 11,380,693 13,059,227 1.15 Computer and Software Stores 3,127,408 8,831,045 2.82 Camera & Photographic Equipment Stores 594,246 1,815,637 3.06 Electronics & Appliances Stores 15,102,348 23,705,910 1.57 Furniture and Home Furnishings Stores Potential �:Actual Sales Leakage/Surplus Index Furniture Stores 9,694,469 11,302,442 1.17 Home Furnishing Stores 7,643,846 23,431,929 3.07 Furniture & Home Furnishings Stores 17,338,315 34,734,372 2.00 Building Material, Garden PActual otential 'Leakage/Surplus SupplyDSales ealers Home Centers 17,252,281 0 0.00 Paint and Wallpaper Stores 1,343,751 104,755 0.08 Hardware Stores 3,888,297 3,172,886 0.82 Building Materials, Lumberyards 7,621,906 3,112,591 0.41 Other Building Materials Dealers 21,600,734 9,127,535 0.42 Building Material & Supply Dealers 44,085,064 12,405,177 0.28 Outdoor Power Equipment Stores 667,549 0 0.00 Nursery and Garden Centers 4,190,654 2,110,792 0:50 Lawn and Garden Equipment and Supplies Stores 4,858,203 2,110,792 0.43 Building Material & Garden Equipment & Supply Dealers 48,943,268 14,515,969 0.30 ... and Beverage Stores Potential Actual Sales Leakage/Surplus Index Supermarkets and Other Grocery (except Convenience) 47,510,826 84,331,020 1.78 Stores Convenience Stores 2,419,266 589,699 0.24 Grocery Stores 49,930,092 84,920,720 1.70 Specialty Food Stores 1,674,130 2,083,429 1.24 Beer, Wine, & Liquor Stores 4,292,061 3,286,759 0.77 Food & Beverage Stores 55,896,284 90,290,910 1.62 Stores —Health and Personal Care .- .- Pharmacies and Drug Stores 20,870,802 15,686,525 0.75 Cosmetics, Beauty Supplies and Perfume Stores 873,126 2,392,677 2.74 Optical Goods Stores 1,164,553 816,374 0.70 Other Health and Personal Care Stores 1,535,101 2,6B5,631 1.75 Health & Personal Care Stores 24,443,584 21,581,20E 0.88 DrvID1 Balboa Blvd & Main St Newport Beach, CA 92661 7 Minute Drive Time Mans Clothing Stores 1,290,160 6,061,763 4.70 Womens Clothing Stores 5,292,558 44,811,111 8.47 Children and Infants Clothing Stores 741,635 4,986,567 6.72 Family Clothing Stores 10,632,311 18,579,694 1.75 Clothing Accessories Stores 611,879 1,462,628 2.39 Other Clothing Stores 1,351,118 3,726,082 2.76 Clothing Stores 19,919,665 79,627,847 4.00 Shoe Stores 3,347,797 6,884,069 2.06 Jewelry Stores 6,142,472 18,415,800 3.00 Luggage, & Leather Goods Stores 419,981 1,369,428 3.26 Jewelry, Luggage, & Leather Goods Stores 6,562,453 19,785,228 3.02 Clothing & Clothing Accessories Stores 29,829,916 106,297,145 _ 3.56 Sporting Goods Stores 4,347,106 6,932,862 1.59 Hobby, Toys and Games Stores 2,412,087 3,650,743 1:51 Sew/Needlework/Piece Goods Stores 634,821 652,394 1.03 Musical Instrument and Supplies Stores 846,511 341,143 0.40 Sporting Goods, Hobby, & Musical Instrument Stores 8,240,526 11,577,145 1.41 Book Stores 2,579,703 521,343 0.20 News Dealers and Newsstands 126,815 20,971 0.17 Book Stores and News Dealers 2,706,518 542,314 0.20 Prerecorded Tape, Compact Disc, and Record Stores 1,240,928 634,390 0.51 Book, Periodical, & Music Stores 3,947,447 1,176,705 0.30 Sporting Goods, Hobby, Book, & Music Stores 12,187,973 12,753,850 1.05 DrvID1 Balboa Blvd & Main St Newport Beach, CA 92661 7 Minute Drive Time General Merchandise Stores iiPotential, Actual Sales Leakage/Surplus Index Department Stores excluding leased depts. 32,256,580 75,112,142 2.33 Warehouse Clubs and Super Stores 27,631,499 0 0.00 All Other General Merchandise Stores 5,335,158 2,116,554 0.40 Other General Merchandise Stores 32,966,657 2,116,554 0.06 General Merchandise Stores 65,223,238 77,228,696 1.18 Store Retailers PotentialMiscellaneous .- .- Florists 1,127,177 1,024,739 0.91 Office Supplies and Stationery Stores 3,860,829 1,059,885 0.27 Gift, Novelty, and Souvenir Stores 2,996,740 8,303,688 2.77 Office Supplies, Stationery, & Gift Stores 6,857,569 9,363,574 1.37 Used Merchandise Stores 1,458,362 1,529,862 1.05 Other Miscellaneous Store Retailers 6,445,904 16,617,590 2.58 Miscellaneous Store Retailers 15,889,014 28,535,766 1.80 Foodservice Drinking Places - : 1p6tentlaC� , Act�al Sale$ Leakage/Surplus index Full -service Restaurants 27,729,148 99,078,644 3.57 Llmited-service Eating Places 24,743,378 75,098,013 3.04 Special Foodservices 4,765,738 7,337,351 1.54 Drinking Places -Alcoholic Beverages 3,101,380 2,728,216 0.88 Foodservice & Drinking Places 60,339,644 184,242,226 3.05 Sources and Methodology Household demand estimates are derived by combining data from the Consumer Expenditures Survey by the Bureau of Labor Statistics with current household demographic estimates from Claritas. The demand estimates only account for household expenditures. Demand is defined as the estimated dollar amount spent by a household that resides in the area of analysis for a specified retail store type or merchandise line item. Supply estimates are generated from the Census of Retail Trade, a component of the Economic Census. County -level sales tax data is allocated to low levels of geography using business sales estimates, business locations, and employee counts provided by Claritas' Business Facts® database. Supply includes all products sold at retail outlets in a specified area for a one-year period. Supply is defined as the estimated total retail sales for a retail store type or merchandise line Item. r Source: Retell MetkolPavet (Clatltes) Bmlon q.aftG .- Retail Leakage and Surplus Analysis The Retail Leakage and Surplus Analysis examines the quantitative aspect of the community's retail opportunities. It is a guide to understanding retail opportunities but it is not an analysis that indicates unconditional opportunities. The analysis Is sometimes called "a gap analysis" or "a supply and demand analysis" and can aid in the following: 'Indicating how well the retail needs of local residents are being met 'Uncovering unmet demand and possible opportunities 'Understanding the strengths and weaknesses of the local retail sector 'Measuring the difference between actual and potential retail sales Understanding Retail Leakage Retail leakage means that residents are spending more for products than local businesses capture. Retail sales leakage suggests that there is unmet demand in the trade area and that the community can support additional store space for that type of business. However, retail leakage does not necessarily translate into opportunity. For example, there could be a strong competitor in a neighboring community that dominates the market for that type of product or store. Understanding Retail Surplus A retail surplus means that the community's trade area is capturing the local market plus attracting non -local shoppers. A retail surplus does not necessarily mean that the community cannot support additional business. Many communities have developed strong clusters of stores that have broad geographic appeal. Examples of these types of retailers include: sporting goods stores, home furnishing stores, restaurants, and other specialty operations that become destination retailers and draw customers from outside the trade area. Examining the quantitative aspects (Leakage/Surplus) is only part of the evaluation of community's retail opportunities. Before any conclusions can be drawn about potential business expansion or recruitment opportunities, qualitative considerations such as trade -area psychographics and buying habits must be analyzed in context of other market factors. Site Address Leakage/Surplus Index by Product Groceries and Other Foods -°^-- Meals and Snacks Alcoholic Drinks Packaged Llquor/WinelBeer - Cigars, Cigarettes, and Tobacco & Smokers Accessories - Drugs, Health Aids, and Beauty Aids -- -'-- Soaps, Detergents, and Household Cleaners - --� Paper and Related Products -- Mens Wear - Worriers, Juniors, and Misses Wear ---- Childrens Wear --- Footwear ----� Sewing, Knitting, and Needlework Goods- Curtains, Draperies, Blinds, Slipcovers etc-- MajorHouseholdAppliances - SmallElectricAppliances _ Televisions, Video Recorders, Video Cameras -. -.--� Audio Equipment, Musical instruments, and Supplies -�-- Furniture and Steep Equipment --- - Flooring & Floor Coverings Computer Hardware, Software and Supplies Kitchenware and Home furnishings -- -" Jewelry ....._. Books -.--.-... __.. Photographic Equipment & Supplies -- Toys, Hobby Goods, and Games — ----- Optical Goods - Sporting Goods Hardware Tools, and Plumbing and Electrical Supplies ---- Lumber and Building Materials --N - --.. Paint and. Sundries Cars, Trucks, and Other Powered Transportation Automotive Fuels --� Automotive Lubricants ------ -- Pets, Pet Foods, and Pet Supplies All Other Merchandise O 0 0 F 150.. , 300 ,�g0 A00 Btnaon ,, _Geography DrvID2 Newport Blvd & 28th ST Newport Beach, CA 92663 7 Minute Drive Time The sales potential and the actual sales potential by product category and the resulting index are shown in Figure 2. Fi ure 2. Sales Potential and Actual Sales by Product 17- Product TypeIndex Groceries and Other Foods 121,360,645 126,429,626 1.0 Meals and Snacks 100,655,404 254,432,866 2.5 Alcoholic Drinks 13,498,214 28,865,320 2.1 Packaged Liquor/Wine/Beer 17,349,153 26,930,401 1.6 Cigars, Cigarettes, and Tobacco & Smokers Accessories 9,282,780 14,724,064 1.6 Drugs, Health Aids, and Beauty Aids 51,759,892 83,602,651 1.6II Soaps, Detergents, and Household Cleaners 5,128,696 4,717,218 0.9 Paper and Related Products 6,205,981 5,092,615 0.8 Mens Wear 21,349,586 21,362,718 1.0 Womens, Juniors, and Misses Wear 37,800,625 47,080,526 1,2 Chlldrens Wear 7,221,279 8,759,131 1.2 Footwear 14,046,539 13,567,924 1.0 Sewing, Knitting, and Needlework Goods 1,743,290 2,276,561 1.3 Curtains, Draperies, Blinds, Slipcovers etc. 7,627,293 5,833,475 0.8 Major Household Appliances 6,457,166 10,135,027 1.6 Small Electric Appliances 3,115,847 1,605,405 0.5 Televisions, Video Recorders, Video Cameras 8,209,455 7,679,593 0.9 Audio Equipment, Musical Instruments, and Supplies 13,054,261 12,941,245 1.0 Furniture and Sleep Equipment 19,323,738 32,668,516 1.7 Flooring & Floor Coverings 6,560,511 15,519,836 2.4 Computer Hardware, Software and Supplies 25,425,669 29,811,641 1.2 Kitchenware and Home furnishings 15,562,487 15,826,617 1.0 Jewelry 17,211,523 22,203,414 1.3 Books 7,268,227 7,684,000 1.1 Photographic Equipment & Supplies 2,606,700 4,507,599 1.7 Toys, Hobby Goods, and Games 7,832,466 8,480,882 1.1 Optical Goods 2,256,856 2,515,616 1.1 Sporting Goods 14,877,158 56,451,553 3.8 Hardware Tools, and Plumbing and Electrical Supplies 46,360,512 38,506,821 0.8 Lumber and Building Materials 34,762,917 41,559,395 1.2 Paint and Sundries 6,056,789 5,402,008 0.9 Cars, Trucks, and Other Powered Transportation 130,913,400 356,827,109 2.7 Automotive Fuels 70,888,305 57,175,725 0.8 Automotive Lubricants 26,334,213 43,491,104 1.7 Pets, Pet Foods, and Pet Supplies 3,792,535 6,291,156 1.7 All Other Merchandise 35,139,851 47,572,663 1.4 Leakage/Surplus Index by Major Store Type The quantitative comparison of retail leakage and surplus in the twelve major store types shown in the chart and table below provides an initial measure of market opportunities. Combining this analysis with the knowledge of the local retail situation will take the process of identifying retail possibilities one step further. Figure 3 provides the leakagelsurplus indices and following is the sales potential and actual sales for major store types. Motor Vehicle & Parts Dealers 167,175,028 464,950,168 2.78 Furniture & Home Furnishings Stores 27,592,563 55,409,148 2.01 Electronics & Appliances Stores 25,726,464 38,427,865 1.49 Building Material & Garden Equipment & Supply Dealers 82,177,873 76,965,069 0.94 Food & Beverage Stores 104,697,188 151,721,007 1.45 Health & Personal Care Stores 40,847,792 78,174,192 1.91 Clothing & Clothing Accessories Stores 51,046,746 87,570,376 1.72 Sporting Goods, Hobby, Book, & Music Stores 20,610,487 39,191,891 1.90 General Merchandise Stores 114,390,099 16,406,834 0.14 Miscellaneous Store Retailers 26,687,310 50,156,738 1.88 Foodservice & Drinking Places 105,348,382 267,302,132 2.54 GAFO 250,678,996 254,504,963 1.02 Total Retail Sales (Including Food Service & Drinking Places) 919,040,008 1,468,532,059 _ 1.60 ' GAFO refers to discount retailers that typically Include the following departments: general merchandise; clothing and clothing accessories; furniture and home furnishings; electronics and appliances; sporting goods, hobby, books and music; and office supplies. Leakage/Surplus Analysis by Sub -Categories of Major Retail Types Additional leakage/surplus details are provided on subcategories of stares in each of the twelve major store types. These details can help further identity possible business expansion opportunities. Automotive Dealers Other Motor Vehicle Dealers Automotive Parts, Accessories, & Tire Stores Motor Vehicle & Parts Dealers 143,041,909 349,096,472 2.44 11,038,455 98,521,626 8.93 13,094,663 17,332,069 1.32 167,175,028 464,950,168 2.78 Household Appliances Stores Radio Television and Other EI Television, and Ot Computer and Software Ston Camera & Photographic Equil Electronics & 3.6R7.3g7 RA41.093 2.29 1 Furniture and Home Furnishings Stores Potential Actual Sales Leakage/Surplus Index Furniture Stores 00 GardenBuilding Material, Equipment.. Dealers Sales index Centers 28,923,765 10,436,807 0.36 Paint and Wallpaper Stores 2,114,478 2,757,532 1.30 Hardware Stores 6,613,835 8,733,835 1.32 Building Materials, Lumberyards 12,789,300 18,361,737 1.44 Other Building Materials Dealers 36,436,905 53,844,989 1.48 Building Material & Supply Dealers 74,088,984 75,773,165 1.02 Outdoor Power Equipment Stores 1,110,176 92,457 0.08 Nursery and Garden Centers 6,978,711 1,099,446 0.16 Lawn and Garden Equipment and Supplies Stores 8,088,888 1,191,903 0.15 Building Material & Garden Equipment & Supply Dealers 82,177,873 76,965,069 0.94 ... aStores nd Beverage Potential Actual Sales Leakage/Surplus Index Supermarkets and Other Grocery (except Convenience) 89,367,013 120,689,405 1.35 Stores Convenience Stores �4,579,796 3,092,185 0.68 Grocery Stores 93,946,810 123,781,590 1.32 Specialty Food Stores 3,213,250 8,583,762 2.67 Beer, Wine, & Liquor Stores 7,537,127 19,355,654 2.57 Food & Beverage Stores 104,697,188 151,721,007 1.45 Health and Personal Care Stores Potential .-Index Pharmacies and Drug Stores 34,932,961 57,361,093 1.64 Cosmetics, Beauty Supplies and Perfume Stores 1,435,368 3,103,180 2.16 Optical Goods Stores 1,901,668 2,056,097 1.08 Other Health and Personal Care Stores 2,577,793 15,653,820 6.07 Health & Personal Care Stores 40,847,792 78,174,192 1.91 Clothing and Clothing Accessories Stores potential �'ActualSales Leakage/Surplus Index Mens Clothing Stores 2,294,007 4,326,612 1.89 Womens Clothing Stores 9,053,582 20,922,386 2.31 Chlldrens and Infants Clothing Stores 1,535,732 4,686,289 3.05 Family Clothing Stores 18,590,468 23,682,760 1.27 Clothing Accessories Stores 977,442 1,558,928 1.60 Other Clothing Stores 2,351,186 8,651,916 3.68 Clothing Stores 34,802,419 63,828,892 1.83 Shoe Stores 6,354,081 6,327,632 1.00 Jewelry Stores 9,232,526 17,413,850 1.89 Luggage, .& Leather Goods Stores 657,718 0 0.00 Jewelry, Luggage, & Leather Goods Stores 9,890,245 17,413,850 1.76 Clothing & Clothing Accessories Stores 51,046,746 87,570,376 1.72 Sporting Goods Stores 7,227,881 20,048,338 2.77 Hobby, Toys and Games Stores 4,094,467 7,263,528 1.77 Sew/Needlework/Piece Goods Stores 1,084,027 2,110,693 1.95 Musical Instrument and Supplies Stores 1,485,983 724,727 0.49 Sporting Goods, Hobby, & Musical Instrument Stores 13,892,360 30,147,287 2.17 Book Stores 4,24%739 5,965,142 1.40 News Dealers and Newsstands 214,023 3,623 0.02 Book Stores and News Dealers 4,462,763 5,968,765 1.34 Prerecorded Tape, Compact Disc, and Record Stores 2,255,364 3,075,837 1.36 Book, Periodical, & Music Stores 6,718,127 9,044,603 1.35 Sporting Goods, Hobby, Book, & Music Stores 20,610,487 39,191,891 _ _ 1.90 MerchandiseGeneral Stores ,Potential Department Stores excluding leased depts. 55,384,248 9,336,857 0.17 Warehouse Clubs and Super Stores 50,023,097 0 0.00 All Other General Merchandise Stores 8,982,754 7,069,977 0.79 Other General Merchandise Stores 59,005,851 7,069,977 0.12 General Merchandise Stores 114,390,099 16,406,834 0.14 Store Retailers Potential,Miscellaneous .-index Florists 1,819,708 2,462,595 1.35 Office Supplies and Stationery Stores 6,376,202 10,781,604 1.69 Gift, Novelty, and Souvenir Stores 4,936,432 6,717,243 1.36 Office Supplies, Stationery, & Gift Stares 11,312,635 17,498,847 1.55 Used Merchandise Stores 2,435,390 4,262,473 1.75 Other Miscellaneous Store Retailers 11,119,575 25,932,822 2.33 Miscellaneous Store Retailers 26,687,310 50,156,738 1.88 Foodservice and Drinking Places, Potential Actual Sales Leakage/Surplus Index Full -service Restaurants 48,234,643 149,971,442 3.11 Limited -service Eating Places 43,621,303 102,248,889 2.34 Special Foodservices 8,376,183 8,349,148 1.00 Drinking Places -Alcoholic Beverages 5,116,252 6,732,651 1.32 Foodservice & Drinking Places 105,348,382 267,302,132 2.54 Sources and Methodology Household demand estimates are derived by combining data from the Consumer Expenditures Survey by the Bureau of Labor Statistics with current household demographic estimates from Claritas. The demand estimates only account for household expenditures. Demand is defined as the estimated dollar amount spent by a household that resides in the area of analysis for a specified retail store type or merchandise line item. Supply estimates are generated from the Census of Retail Trade, a component of the Economic Census. County -level sales tax data is allocated to low levels of geography using business sales estimates, business locations, and employee counts provided by Claritas' Business Facts® database. Supply includes all products sold at retail outlets in a specified area for a one-year period. Supply is defined as the estimated total retail sales for a retail store type or merchandise line item. source: Retell Market PowerN (Clorkas). Aaaendix B: Bl1`sxoty Demographics IaaKM,N{CWwmsn Analysis Geography: Newport Beach, CA 7 - Minute Trade Area Date: 6/25/2008 Balboa Newport Population Profile Blvd & Blvd & 2012 Projection 53,526 77,276 2007 Estimate 52,647 76,185 2000 Census 52,169 76,405 1990 Census 50,581 69,368 10% 5% 0% Population Change Growth 1990-2000'% Growth 2000-2007 % Growth 5 Year Proil % Balboa Blvd &Main St l� New port Blvd & 28th ST Balboa Newport Work Place Population Blvd & Blvd & Total 62,519 55,639 Household Profile 2012 Projection 25,570 30,265 2007 Estimate 25,284 30,273 2000 Census 25,298 31,064 1990 Census 23,872 29,973 5% 0% Household Change Balboa Blvd & Main St = New port Blvd & 281h ST Growth 1990-2000'% Growth 2000.2007 % Growth 5 Year Pmj a4ee-1�.�a»..�.Emo� ��.o.....�a LLe�«wow.. �o.a�ou..��.o� Page: I BUN,,xao Demographics Analysis Geography: Newport Beach, CA 7 - Minute Trade Area Date: 6/25/2008 Balboa Newport Population By Race (Current) Blvd & Blvd & White 48,164 57,150 Black 311 688 American Indian 136 475 Asian 2,086 2,562 Pacific Islander 73 219 Other 798 12,402 Two Or More 1,079 2,689 Total Population By Race 52,647 76,185 Population By Race (Current) Balboa Blvd & Main St 0 New port Blvd & 28th ST White Black Amerian Indian Asian PaorK blander Other Two Or More Balboa Newport Population By Hispanic Origin (Current) Blvd & Blvd & Hispanic Origin 2,797 22,292 Non Hispanic Origin 49,850 .53,893 N..-.. Gvbrb. WiY..iz. P*. HE.. C..lN iM.02...... .... ..... u..M AMd W.......Page:2 Bu-Nto T Demographics omturyya,wxn Analysis Geography: Newport Beach, CA 7 • Minute Trade Area Date: 6/25/2008 Balboa Newport Population By Age (Current) Blvd & Blvd & 0 to 4 years 1,950 4,602 5 to 9 years 2,119 4,602 10 to 14 years 2,338 4,697 15 to 17 years 1,440 2,394 18 to 20 years 1,139 2,279 21 to 24 years 1,790 3,373 25 to 34 years 7,273 13,483 35 to 44 years 8,503 13,180 45 to 49 years 4,129 S,819 50 to 54 years 4,063 4,869 55 to 59 years 4,257 4,341 60 to 64 years 3,576 3,442 65 to 74 years 4,865 4,411 75 to 84 years 3,688 3,151 85+ Years 1,517 1,542 Total Population By Age 52,647 76,185 Average Age 44.S 38.0 Median Age 4S.5 38.0 Population By Age (Current) M Balboa Blvd &Main St [� Newport Blvd & 28th ST Page: 3 BuN COn Demographics Analysis Geography: Newport Beach, CA 7 - Minute Trade Area Date: 6/2S/2008 Balboa Newport Households By Income (Current) Blvd & Blvd & Under $15,000 1,541 2,4S2 $15,000 to $24,999 1,216 2,4S9 $25,000 to $34,999 1,487 2,439 $35,000 to $49,999 2,487 3,984 $50,000 to $74,999 3,875 5,586 $75,000 to $99,999 3,134 3,739 $100,000 to $149,999 4,570 4,S61 $150,000 to $249,999 3,520 2,927 $2S0,000 to $499,999 1,897 1,261 $S00,000 + 1,557 86S Total Households By Income 25,284 30,273 Average Household Income $137,813 $100,433 Per Capita Income $73,S66 $54,156 Median Household Income $100,417 $75,566 Households By Income (Current) ® Balboa Blvd & Main Sl 0 tJew port Blvd & 281h ST 0.4 Eoimz&nYib40n�.Iz.PNmNE00XN HaV9A Iz.OMO.WLLZIPn�veM1LLn�µO]Wl.4,CYnsh M���rtAIz.OIIM. WOpnpNe 0.YTO.zbry.Iz.OMM Page•4 BUS Co Demographics Analysis Geography. Newport Beach, CA 1 - Minute Trade Area Date: 6/25/2008 Balboa Newport Housing Units By Occupancy (Current) Blvd & Blvd & Owner - Occupied 45.9% 37.9% Renter - Occupied 40.7% 52.6% Vacant 13.4% 9.61% Owner - Occupied Property Values (Current) Under $20,000 90 187 $20,000 to $39,999 47 216 $40,000 to $59,999 47 188 $60,000 to $79,999 64 83 $80,000 to $99,999 70 101 $100,000 to $149,999 86 128 $150,000 to $199,999 94 37 $200,000 to $299,999 73 124 $300,000 to $399,999 116 337 $400,000 to $499,999 286 766 $500,000 to $749,999 968 1,748 $750,000 to $999,999 937 1,590 $1,000,000 + 10,534 7,174 Total Owner - Occupied Property Values Median Property Value Owner - Occupied Property Values (Current) 13,412 12,679 923,938 770,693 ® Balboa Blvd & Main St I 0 New port BNd & 28th ST ph Baum„YubM.flv,n.M.PIun HEO.ONb. KeY9Alx.0]%E M,YwIPu.uN WuuONH.MKYmM...... m.O WY.Wgn,Fk 0.YT,MobpY.4w.0°ON Page•5 r De Santis, Leigh From: Adrienne Schroder [aschroder@buxtonco.comj Sent: Wednesday, June 18, 2008 2:11 PM To: De Santis, Leigh Cc: Wood, Sharon; Bowden, Katie; Lisa Hill Subject: Newport Beach, CA - Trade Area Map Hi Leigh, Your trade areas have been loaded to SCOUT and we are ready to proceed with the Trade Area Map conference call. During this call we will address any questions you may have regarding the trade area and then proceed from there to the Retail Site Assessment period. This phase will be addressing the psychographic make up of each village, as well as the potential demand for goods and services within the trade area. In the meantime, if you would like to access SCOUT on your own prior to our call, you can do that by going to our website at www.buxtonco.com. Click on the button on the left side under Client Log -In that reads, "Sign In to SCOUT 2.0." Please note that the program will work only with the latest version of Adobe Flash. If you do not currently have the version downloaded, you can download it via the Buxton website. Your usernames and passwords are as follows: (Please note that your password is case sensitive.) Leigh - Username: LDeSantis@city.newport-beach.ca.us Password: desantis-I Sharon - Username: swood@city.newport-beach.ca.us Password: wood-s Katie - Username: kbowden@city.newport-beach.ca.us Password: bowden-k I would love to set up a time on Friday, June 20th to review this material, and answer any questions you might have before we move forward. Please advise as to your availability on Friday., Should this not be a convenient day for you, please let me know and we will find something that works for everyone. Best regards, Adrienne Adrienne Schroder Client Services Associate Buxton 817.332.3681(phone) 817.332.3686 (fax) www.buxtonco.com <http://www.buxtonco.com> Community/D SCOUT 2.0: A Quick Start Guide to Using. SCOUT 2.0 to Promote Your Community Introduction to CommunitylD SCOUT 2.0 SCOUT 2.0 for CommunitylD is Buxton's password -protected online marketing tool that helps you promote your community to retailers, developers and brokers. CommunitylD SCOUT 2.0 provides these features: • SCOUT allows you to showcase your community's best retail sites using dynamic online tools. • SCOUT gives you instant access to the most accurate household Insights and demographics through high -resolution mapping. • SCOUT serves as a single location for all the maps, data and other information related to the marketing of your community. • SCOUT serves as a powerful presentation system that can give your community a high - tech, professional image. • SCOUT functions as a convenient reference and planning tool that's available anytime. Using This Guide The purpose of this guide Is to help you quickly begin using SCOUT. Read through it to learn how to get started with SCOUT and how best to use SCOUT for marketing purposes. For complete user Instructions, refer to the SCOUT 2.0 online Help. This guide is divided into the following sections and topics: I. Using SCOUT • Learning the SCOUT 2.0 interface • Logging in and out • Using Map Tools • Using the Legend • Using the Tab Bar II. Promoting Your Community with SCOUT • Creating and saving customized maps • Uploading marketing data to SCOUT • Using SCOUT 2.0 to market your community to retailers and. developers • Distributing SCOUT 2.0 marketing data Using SCOUT Learning the SCOUT interface The SCOUT interface consists of six primary components: 1. Title bar displays the name of the currently selected site, or "No Site Selected" If no site is selected. 2. Map tool provides tools for navigating, measuring, and printing the map. For more information about the map tool bar, see Using Mao Tools. 3. The map shows geographic information about your sites, such as location and trade area. 4. The tab bar provides access to several tools for locating sites, managing files, and viewing scenarios. For more Information about the Tab bar, see Using the Tab Bar. 5. The Options button allows you to log out of SCOUT. It also gives you access to online Help, which provides detailed user instructions for SCOUT 2.0. 6. The legend allows you to overlay your selected site with a variety of useful information. For more information about the legend, see Using the Legend. � .°ih«�+a„m�xi.>„!�'.,•w4i„m�:i�,nt.c::; �n;��L.r:�.,a�� 2 —^^ ,.3�AiS I.`"q..j6O li.pF,^•. �yA�fN '-1 W.II. t. ..ML 1• ��N.NY Y �3Yw�r Y.nni.lv.95•.• ''qq © I:.KS'� UM .Vw 1l Nld..Na.NNI! i IfNJNw U IwW+a�owr U O.tI HpL.m MtONWWf LI.N...w+, L. aNa�.IMl.vn E. Logging In and Out of SCOUT To access SCOUT 2.0, you must log in using your username and password. When you finish using SCOUT, you should always log out. When you log in, SCOUT starts a new session for you. This session allows SCOUT to remember your identity, and it prevents unauthorized users from accessing your protected information. Logging in You must log in to SCOUT through the Buxton Web site, htto://www.buxtonco.com. To log in to SCOUT: 1. Open http://www.buxtonco.com in your web browser. 2. Click "Sign in to SCOUT 2.0" on the Buxton home page. 3. Enter your username and password into the SCOUT login form. 4. Click the "Login" button. SCOUT will continue loading and display the default map. If SCOUT does not launch, verify that you entered your login information correctly and try again . Note: SCOUT cannot recover lost passwords. If you forget your password, you will need to have a new password assigned to you. Logging out You should always log out of SCOUT when you finish using it for the day . To log out of SCOUT: 1. Click the "Options" button located just below the legend. A menu will appear. 2. Choose "Log Out" from the menu. SCOUT will return to the log in form. Changing your password You should change your SCOUT password periodically to help protect your information from unauthorized access. To change your password: 1. Click the "Options" button at the bottom -right corner of the SCOUT window. A menu will appear. 2. Choose "Edit Account" from the menu. A window will appear. 3. Enter a new password into the "Password" and "Verify Password" fields. 4. Click the "Save Changes" button. If the change is successful, the window will close. If the window does not close, verify that you entered the new password correctly. Using Map Tools Navigate/Select The Navigate/Select tool provides the site address and allows you to move the map. To see the site address: Move the Navigate/Select tool over a site name to display a popup window that shows the name and address of the site. To move the map: Click the Navigate/Select tool on the map and drag the map within the window. 14 Zoom In The Zoom In tool allows you to display more detail on the map. To zoom in on a point: Click the Zoom In tool and then click a point on the map. SCOUT will show a new map with the clicked point at the cente r. To zoom in on a rectangle: Click the Zoom In tool at a point on the map, and drag the tool to create a rectangle. When you stop clicking, SCOUT will show a new map with the center of the rectangle at the center. 4 Zoom Out The Zoom Out tool gives you a broader, less -detailed view. To zoom out: Click the Zoom Out tool at a point on the map. SCOUT will show a new map with the clicked point at the center, and the new map will be zoomed out to half the level of the previous map. Measure Distance The Distance tool allows you to measure distance from a point on the map. To measure distance: 1. Click the Distance tool at a point on the map. 2. Drag the mouse to a different location on the map. 3. Move the mouse to a new location. The distance from the clicked point will show. Print The Print tool allows you to print the selected map. E P Zoom To The Zoom To tool allows you to set the level of zoom without changing the map location. To set a custom zoom level: Click and drag the slider to a new position. Slide up to zoom in, and down to zoom out. Note that the level of map detail will change as the zoom level changes. Using the Legend The map legend allows you to select a specific site and to overlay information onto the site map . The legend is composed of three tabs, each containing a distinct set of map data. Psychographic Site Analysis paychographic Site Analysis ♦ sites 0 *site 1 M -D Site 1 7-Minute Drive U Site 1 Dominant Segme ♦ Retail Matches ❑, ABC Company 6i DEF Company ❑ A XYZ Company The Psychographic Site Analysis panel (shown above) displays information about your site and your retail matches. Displaying this type of information is an effective way to show retailers exactly what kinds of households —and potential customers —are located in your trade area. Using this panel: Click the checkboxes to display or hide information on the map. When clicked, the checkboxes display this information: • Site: Marks the site on the map with a star. • 7-Minute Drive Time: Outlines the 7-minute drive time of the selected site. • Dominant Segment: Overlays the map with dots representing dominant segment households and displays a popup window (shown below) listing the number of dominant segment households in the trade area. households 4r ont � hpUsoholds in Made area Y dot - t eustomor (Mor visual presentation, dots arc evonly distributed Wdldn block groups) (continued) • Retail Matches: Click "Retail Matches" to show dominant segment households for all retail matches, or click the individual retailer name to show the dominant segment households for that retailer. Clicking a retailer name displays a popup window (shown below) that identifies the number of dominant segment households In that trade area. AOC company Q, 20,10 dominant segment .n households in trade area PL48.tR,I'SA.:sS E.A�r3 1 dot .1 customer (For visual presentation, dots are evenly dishibuted vrithiwblook groups) Click the Profile Match Report link on this popup window to display the 7-minute drive time segmentation profile for that retailer (shown below). ' pmllle Htltlt�0.eplk a� ApewuN htlQa p Malt eda rnepl 1fY Yi qq yfn 3 K � w5 11 H i1•�s.l anaw.enatrwmwwaavamaye.w urraamta�aa: w )Gmw.�or.lad.alm•br` Oo.enwu.Wni.w++4 —seww+ 1 Tait Ma Ggdw Q tlme dirt Tit) Gfl ku h*kua Imo agfae but,el+m µ111 1W1 A10 WSY,w 109 JIM AM eapt Uo.LP.Ir ft lilt ISM Am Miscellaneous Map Features The Miscellaneous Map Features tab displays symbols that represent amenities In your community, including institutions, transportation, retail centers by size, recreation areas, your Buxton urban density score and map labels. Using this panel Click the checkboxes to display or hide these symbols on the map. Demographics The Demographics tab displays demographic data, displayed as thematics (either shaded areas or dot densities). When a thematic is made visible, a thematic legend will open, indicating the values of the colors or dots. Using this panel Click the checkboxes to display or hide this Information on the map. 1 Psychographic Site AnaiysW i Misc. Map Features ♦❑ Institutions ❑'�4 University/College ❑ air, School ❑ it, Place of Worship ❑ [B Cemetery ❑ b Government Facili ❑ �J County seat ❑ © Hospital ❑ 61i Convention Carte Y ❑ Transportation ❑ G Ferry Terminal ❑ iR Bus Terminal ❑ a Train Station ❑ it Traffic Counts Y ❑ Retail Centers (by GLA)'„ Q YM+ sq. ft. ❑ 0 SOOK to iM sq, ft. ❑ O INK to 500K sq. ❑ O < INK sq. ft. Y ❑ Recreation Areas ❑ J, Recreation Area u +Demographics Psychographic Site.Analysis ,Misc. Map Periures Demographics Y Shaded Thematics [J Property Value ❑ Median Household Inco ❑ Population ❑ Population Density ❑ Daytime Population Y❑ Dot Densities ❑ Households ❑ Daytime Population Using the Tab Bar The tab bar panel contains many advanced SCOUT tools. By default, the panel is hidden, and only the tab bar is visible. To show or hide the tab bar panel, click the up/down arrow Icon or any of the tab labels. I -1 I Sites t Files '"57 Site Tab The Site tab lists the sites currently selected in the Psychographic Site Analysis panel. 'WtfT.MN P86¢ fili-, �''�'i.+ •1-f sbl (i fy'illli,I�ilirPon°L `. 1�•ilj. .Il :.'h1I.,f 1 -uoc `ou7i`j• nU9anN � P,'• .� at i� a •. ,*t III. su l.m!+ ,I �3i ;,t i'= f`' >:•i �f,p .,�� fwssau 1 w„ ,r u.,.tx„n - Ys,gA•: " 2'_—'Y' rt- r ri.l avhi Mvdix ,+aVUGrt'`'tP � 1]Atsccew+m AWcamom I w3.du w fc— ' .a ,i-rl ilNolnN :lean-nnaa ' :�.Ii 3 .�N,. Kw.weh•luv ♦ 11Yme aeeRY tlb fble (Tx 1 ', YYi NN>44nep. M2 G4 Y 65333 Files Tab The Files tab serves as a single location for all information used to market your community Think of It as an online binder for your presentations to retailers and developers. You can store aerial photos, site assessments, zoning marketing information, incentives, information related to the local and regional economy and anything else that relates to your sites. This stored material Is available Instantly, wherever you have Internet access. The Files tab contains your Site Assessment and Retail Match documents from Buxton as well as any other community -related documents you upload to the site. 1 0.' Al: i W va IsVl <amuxY l,MroW N)J� WY[snMY P!•YV+OM G•d%nM.. dYMM[ i �IW S:J4 4 ce h�• •11VMYIT � II � YU un U 9k se..rw.�N Y3 1 v[unnroa u 1 sn: cana[q U A «» }_ ALWtL`aT , To open a file folder: 1. Select the site for analysis and retail matching on the map. 2. Click "Files" on the Tab bar. The File panel will show. 3. Double-click a file folder to open it. The contents of the file will display. To upload a file: 1. Select your site on the map. 2. Click "Files" on the tab bar. The File panel will show. 3. Click a file folder. The contents of the file will display. 4. Click the "Upload File" button. You will be prompted to locate a file on your computer. Note: If the "Upload File" button is not visible, then you do not have permission to upload files to the selected file folder. Maps Tab The Maps tab allows you to easily save and retrieve custom maps. You may also share maps and view other users' shared maps. To see a list of saved maps in SCOUT, click "Maps" on the tab bar. (Note: Only the account administrator has permission to save maps.) �• 5 1 •"� �^ 'wmrsnp tlrRiuvoo,'�1 � mli. . SRe, 1.0" r�C. -, R'•d `5 w •' !•• , �.+i, n') iJ 5lr van�"waf.yrr 14 ' '^ "Y' t U a .Y _ 9s !• unM,nl !P, i IJdw:bm.m ,t' -- �1-� i`'...:�ap�'��-,e °`, �_1_ �:!'_:,Ce� --_r '',:_•.. L4eeemrm] ].]ie.i,r 1_IAv....... jr s il,rtr� n �',." ci. :i r r Maps are shown as an icon with a name. The icon represents which settings are saved with a particular map. The following symbols can make up a map icon: ® Pushpin: indicates that the map location is saved. f Magnifying glass: indicates that the map zoom is saved. FW]Yellow US map: indicates that the map symbol settings are not saved. ®Shaded US map: indicates that the map symbol settings are saved. Maps can be made private, so you will not see other users' map s that they have chosen not to share. For Instruction on saving, downloading, deleting and printing maps, see the SCOUT 2.0 online Help. CommunitylD Scout User's Guide Promoting Your Community with SCOUT 2.0 This section explains how to use SCOUT 2.0 to create customized maps to provid a to retailers, and it describes how to upload your own files to SCOUT and make them available to viewers. In addition, this section provides guidelines about what information to send and how to send it. Creating and Saving Customized Maps SCOUT's leading -edge technology lets you build multiple, high -resolution map views of the delineated trade area with the specific information you want to highlight. You can create your own titles and customize the map colors, too. When you're finished, you can print the maps or save them as PDFs. To create and save a customized map: The following are steps for creating a map that could be sent to a retailer. Most likely, you will want to create several custom maps for each retailer, showcasing different types of data. 1. Log into SCOUT. 2. From the Psychographic Site Analysis tab: • Click the checkbox for the site you are mapping. • Click the "7-minute Drive Time" checkbox to display the trade area. • Click the "Dominant Segment" checkbox to overlay dots representing the trade area's dominant segment households. 3. From the Miscellaneous Map Features tab, click the checkboxes next to the features you want to display. Which features you display will depend upon the information you believe will be important to the retailer's decision -makers. For instance, a women's clothing retailer might be interested in nearby universities/colleges and convention centers but not Interested In cemeteries and train stations. 4. From the Demographics tab, click the checkboxes next to the demographic data you want to overlay onto the map. It is suggested that you select "Daytime Population." 5. To save this version of the map, click the Maps tab on the tab bar. (continued) ComID SCOUT User Guide FINAL. Page 13 of 20 CommunitylD Scout User's Guide 6. Click Save Map. The Save Map dialog box displays. save Map Map Name unuued map Properties to Save Location zoom .� Layers �.j✓ puoapme Permissions ,All CommunitylD Demo usays cap Yq.i tboose..: vblbltlty I ,Wl Alv -W -.,•lu ••.r hen unyi 0.11.d Cancel Lsapamap 7. Type the map's name in the Map Name field. 8. Click the properties you want saved: 1. Click "Location" to save the map's site location. 2. Click "Layers" to save the map's selected layers. 3. Click "Zoom" to save the detail level of the current map. 4. Click "Pushpins" to save pushpins that have been placed on the map. 9. Click the "Choose" button under "Permissions" to define who can view and modify this map. 10. Select the visibility you desire. • Click "Only visible when current site it selected" to ensure that the map can be viewed only when a particular site is selected. It's a good idea to check this selection to make sure that site -specific maps are available only when the particular site is selected on the map. 11. Click "Save Map." ComID SCOUT User Guide FINAL. Page 14 of 20 CommunitylD Scout User's Guide Uploading Marketing Data to SCOUT SCOUT serves as a single location for all the information related to the marketing of your community. You can store all of your retail -specific data in SCOUT —Including maps, photos and zoning information. You can also access this information at any time and give others permission to access it. To uploading marketing information and give viewing access: 1. Select your site(s) on the map. 2. Click "Files" on the tab bar. The File panel will show. 3. Click a file folder. The contents of the file will display in the file browser. 4. Click the "Upload File" button at the top of the file browser. Note: If the "Upload File" button is not visible, then you do not have permission to upload files to the selepted file folder. After you click Upload File, the Upload File dialog box displays . Upload File File I i Drowse... File Type .."Wo c. Wit,, T Destination Folder Site Assessment permissions All CommunitylD Demo users can read ail Choose... Visibility U Gnl. vb+tie "own carrem sde "I sekt Pj i_I vi.l> v: r'e "i..•.. va*+ae .ecnono a Selo^ed Cancel i uplv�a 5. Click the "Browse" button under "File" to locate the file you want to upload. 6. In the "Destination Folder" field, select the file folder in SCOUT in which the file should be saved. 7. Click the "Choose" button under "Permissions" to define wh o can view and modify this map. (continued) ComID SCOUT User Guide FINAL. Page 15 of 20 CommunityID Scout User's Guide 8. Select the visibility you desire. • Click "Only visible when current site it selected" to ensure that the map can be viewed only when a particular site is selected. It's a good idea to check this selection to make sure that site -specific maps are available only when the particular site is selected on the map. • Click the "Upload." After a moment, the file will appear in the file browser. Note: You may only upload certain types of files. Permitted files have the fo flowing file extensions: bmp, doc, gif, jpg, jpeg, pdf, ppt, txt, xls, xit, and zip. ComID SC CommunitylD Scout User's Guide Using SCOUT 2.0 to Market Your Community to Retailers and Developers Following are four typical scenarios of ways to use SCOUT 2.0 to market your community. Scenario 1: Promoting your community to selected retailers and restaurants (from your Profile Match Report) SCOUT makes it easy to provide information to selected retailers and restaurants. Your CommunitylD data from Buxton is conveniently stored in SCOUT. Many commu nities have benefited by providing the following information to selected retailers and restaurants: • Final Report: This report by Buxton is the final report delivered to the community. It Is located in the Site Assessment folder of the Files tab. • Retail Site Determination. This report by Buxton describes the retail trade potential of the sites included in the Buxton study. It is located in the Site Assessment folder of the Files tab. • Customized maps. These maps from Buxton show the trade area potential for selected sites. (See "Creating and Saving Customized Maps.) Scenario 2: Promoting your community to retailers similar to your selected retailers If you want to target retailers with a concept that is similar to one on your Profile Match Report, you'll want to start by providing the retail marketing package prepared by Buxton that most closely matches the retailer you are targeting. For Instance, if Buxton listed Chill's on your match report, you could provide the same information to a similar restaurant, s uch as Appiebee's. Files typically included in marketing package from Buxton are: • Executive Summary • Retailer's trade area household profile • Community's trade area household profile • Profile match report • Trade area maps and analysis • Demographic reports • Household segmentation You should also send additional information about your community provided in the general report from Buxton. ComID SCOUT User Guide FINAL. Page 17 of 20 CommunitylD Scout User's Guide Scenario 3: Promoting your community to other retailers When you're promoting your community to retailers that are not on your Profile Match Report and that are not similar to these retailers, you will provide general information about your community. To get a retailer interested in your community, you could provide information such as: • A customized map for each relevant site th at includes the 7-minute drive time trade area the dominant household segments. (Dominant segments are indicated in the Retail Site Assessment and the Profile Match Report.) • Customized maps showing relevant map symbols and demographic data. • Local land prices and construction cost estimates (for larger retailers who purchase land and build stores) Scenario 4: Promoting your community to developers When promoting your community to developers, provide information that is similar to what you give retailers that you are trying to get interested in your community as well as details about local land availability and prices and lease information. This information can include: • Local land prices • Construction cost estimates • Absorption rates • Lease rates CommunitylD Scout User's Guide Distributing SCOUT Marketing Data SCOUT provides several options for sharing marketing data with retailers. Both files and maps saved to SCOUT can be shared with retailers. The options for sharing this information are : • Sending the data electronically via email • Printing the data • Conducting online meetings using SCOUT • Providing the retailer a SCOUT password This section explains the various options and describes the steps to use them. Sending data via email To email a saved file from SCOUT., To email a file that is in SCOUT, you will download the file to your computer and then send it as an email attachment. To download the file to your computer: 1. In the Files tab, click the File you want to email. 2. Click the "File Options" button, and then select "Download." 3. Select the location on your computer for saving the file, and then click "Save." To email a saved map: To email a map, you will save the map as a PDF file, and then attach the PDF file to an email message. To save a map as a PDF file, you need a PDF printer, such as Adobe Acrobat, on your computer. To print to PDF: 1. In the Maps tab, click the map you want to print. 2. Click the "Map Options" button, and then select "View Map." 3. Click the "Print" button in Map tools. The Print Map dialog will appear. 4. Select the printing desired options (Title, Legend, Color, Paper Size) on the Print Map dialog. 5. Click "Print." The Print dialog appears. 6. In the Select Printer field, click to select the PDF printer. 7. Click "Print." The Save as PDF dialog appears. 8. From the Save in drop down I ist, select the location on your computer where you want to save the PDF file. 9. In the File name field, type the name of the map. 10. Click the "Save" button. The map is saved as a PDF file on your computer. To send the map via email, attach it to an email message. ComID SCOUT User Guide FINAL. Page 19 of 20 CommunitylD Scout User's Guide Printing Data To print a saved file: To print a saved file from the Files tab, you will first download the file to your computer, as described above, and then you will print it as you do any file on your computer. To print a saved map: Saved maps can be printed directly from SCOUT. They do not have to be downloaded to your computer before printing. 1. In the Maps tab, click the map you want to print. 2. Click the "Map Options" button, and then select "View Map." 3. Click the 'Print" button in Map tools. A print dialog will appear. 4. Choose print options for Title, Legend and Color. Select the 'landscape" paper orientation. 5. Choose to shrink the image to fit the page, if your printer has the option. 6. Click the "Print" button. Conducting online meetings If you are proficient with an online meeting service, such as GoToMeeting, you can present your SCOUT marketing information in real time to your audience. It's a good idea to practice using SCOUT within the online meeting environment before actually conduct! ng a meeting. Providing a retailer or developer with a password You may want to give a retailer or developer access to SCOUT that allows them to create maps and to view maps and other files stored in SCOUT. In the event that you need a temporary account created for a retailer or developer, please contact Buxton Client Services and they will assist you with generating this account and specifying a time frame for its activity. ComID SCOUT User Guide FINAL. Page 20 of 20 Newport Beach, CA Retail Match List Cannery Village I��arji]yngg .4 These retailers are good matches based on square footage requirements. Retailer Distance Drive Time Address city State ABERCROMBIE & FITCH 5.90 9 3333 BRISTOL ST COSTA MESA CA, AFTER HOURS FORMALWFAR 6.21 9 393D S BRISTOL ST SANTA ANA CA AMERICANAPPAREL 5.05 Both 2927 BRISTOL ST COSTA MESA CA ANN TAYLOR 5.90 9 3333 BRISTOL ST COSTA MESA CA ASHLEIGH STEWART 18.61 7 200 E STH ST LONG BEACH CA BAILEY BANKS &RIDDLE 5.90 9 3333 BRISTOL ST COSTA MESA CA BANANA REPUBLIC 5.90 9 3333 BRISTOL ST COSTA MESA CA BROOKS BROTHERS INC 590 9 3333 BRISTOL ST COSTA MESA CA CACHE 590 9 3333 BRISTOL ST COSTA MESA CA CINNABON INC 1062 9 1025 WESTMINSTER MALL WESTMINSTER CA COLE HAAN 5.76 9 SOUTH COAST PLAZA COSTA MESA CA COLOR ME MINE 517 Both 200 MAIN ST HUNTINGTON BEACH CA CRABTREE & EVELYN 5.85 9 3333 BEAR ST COSTA MESA CA CRATE&BARREL 585 7 3333 BEAR ST COSTA MESA CA CRESCENT JEWELERS 15.65 Both 1500 E VILLAGE WAY ORANGE CA DIET CENTER 7 None known to be in area FASHION BUG 12.29 7 9835 CHAPMAN AVE GARDEN GROVE CA FASTFRAME 4.03 9 2701 HARBOR BLVD COSTA MESA CA FREDERICK'S OF HOLLYWOOD 25.02 9 261 STONEWOOD ST DOWNEY CA GELSON'S MARKETS 3.74 9 1660 SAN MIGUEL DR NEWPORT BEACH CA GREAT FRAME UP 9.48 Both 15333 CULVER DR IRVINE CA GYMBOREE 5OD 9 3333 BRISTOL ST COSTAMESA CA HALF PRICE BOOKS RECORDS MAGS 9 None known to be in area HAROLD'S 9 None known to be In area JOHNSTON & MURPHY 5 9D 9 3333 BRISTOL ST COSTA MESA CA KAY JEWELERS 1048 9 2059 WESTMINSTER MALL WESTMINSTER CA LIZCLAIBORNE 9 None known to be in area LOEHMANN'S 6.57 Both 18595 MAIN ST HUNTINGTON BEACH CA MASTERCUTS 1174 9 2800 N MAIN ST SANTA ANA CA MAURICES Both None known to be In area NEWYORK&CO 10.62 9 1025 WESTMINSTER MALL WESTMINSTER CA OFFICE MAX 859 Both 16272 BEACH BLVD HUNTINGTON BEACH CA OLD NAVY CLOTHING CO 5.75 9 901 SCOAST OR COSTA MESA CA ONCE UPON ACHILD 45.03 9 40466 WINCHESTER RD TEMECULA CA ORCHARD SUPPLY HARDWARE CORP 6.49 9 19330 GOLDENWEST ST HUNTINGTON BEACH CA ORIGINS NATURAL RESOURCES INC 5.90 9 3333 BRISTOL ST COSTA MESA CA PEARLS VISION 1536 9 320 THE SHOPS AT MISSION VIEJO MISSION VIEJO CA PICTURE PEOPLE INC 11.74 9 2800 N MAIN ST SANTA ANA CA PJ'S COFFEE HOUSE 7 None known to be In area PLANET SMOOTHIE Both None known to be In area POLO RALPH LAUREN 3844 9 1 MILLS CIR ONTARIO CA POTTERY BARN KIDS INC 590 9 3333 BRISTOL ST COSTAMESA CA RALEY'S SUPERMARKETS & DRUG Both None known to be In area ROBEKS 6.11 9 545 ANTON BLVD COSTAMESA CA ROCKY MOUNTAIN CHOCOLATE 5.17 9 200 MAIN ST HUNTINGTON BEACH CA SAMUELS JEWELERS 8.34 Both 2116 GALLERIAAT TYLER RIVERSIDE CA SANRIO SURPRISES 10.61 7 1061 WESTMINSTER MALL WESTMINSTER CA FT - Distance is the straight-line mileage from your site to nearest existing reellerlocaeon. Newport Beach, CA Retail Match List Cannery Village f>' 64 � These retailers are good matches based on square footage requirements. Retailer Distance Drive Time Address city State SEPHORA 590 1 9 3333 BRISTOL ST COSTA MESA CA SHIEKH SHOES 9 Nona known to be in area SMOOTHIE KING 12.45 Both 23411 ALISO VIEJO PKWY ALISO VIEJO. CA STEIN MART INC 6.09 9 19041 BEACH BLVD HUNTINGTON BEACH CA STRIDE RITE 5.85 9 3333 BEAR ST COSTA MESA CA TC B YYOGURT 15.31 9 30301 GOLDEN LANTERN LAGUNANIGUEL CA THOMAS KINKADE GALLERY 5.14 Both 300 PACIFIC COAST HWY HUNTINGTON BEACH CA TRUE VALUE HARDWARE 7.54 9 2727 S MAIN ST SANTA ANA CA TULLY'S COFFEE 4.03 Both 126D BISON AVE NEWPORT BEACH CA VITAMINWORLD 10A8 9 2068 WESTMINSTER MALL WESTMINSTER CA WALGREENS 5.30 9 19001 BROOKHURST ST HUNTINGTON BEACH CA WHEEL WORKS 7 None known to be In area WILD OATS COMMUNITY MARKET 1 7 None known to be in area Distance Is the stral9ht-11 from your site to nearest retailer low0on. Newport Beach, CA Retail Match List Cannery Village 'fti jhijN'� t M1t These retailers are aood matches for Dossible future development Retaller Distance Drive Time Address City State APPLEBEE'S NEIGHBORHOOD GRILL 6.01 9 18279 BROOKHURST ST FOUNTAIN VALLEY CA BAHAMABREEZE 9 Nona known to be In area BAKER'S SQUARE 1266 Both 2110 S HARBOR BLVD ANAHEIM CA SENIHANA INC 5.13 9 4250 BIRCH ST NEWPORT BEACH CA SEREAN CHRISTIAN STORES 16.82 7 216 ORANGEFAIR MALL FULLERTON CA BLIMPIE SUBS &SALADS 6.10 9 2222 MICHELSON DR IRVINE CA BONEFISH 7 None known to be In area CAMILLE'S SIDEWALK CAFE 9 Nona known to be In area CARPETERIA INC 781 Both 8666 WARNERAVE FOUNTAIN VALLEY CA CD WAREHOUSE 9 None known to be In area CHAMPPS AMERICANA 10.83 9 51 FORTUNE DR IRVINE CA EL TORITO 6.07 Bath 18512 MACARTHUR BLVD IRVINE CA ELEPHANT BAR 10.46 7 14346 CULVER OR IRVINE CA FOOTLOCKER 5.00 9 3333 BRISTOL ST COSTA MESA CA FUDDRUCKERS INC 17A3 9 7802ORANGETHORPEAVE BUENAPARK CA GODFATHER'S PIZZA Both None known to be In area GOLD'S GYM 483 9 8975 ADAMS AVE HUNTINGTON BEACH CA GREAT CLIPS 3.91 9 9025 ATLANTA AVE HUNTINGTON BEACH CA GREAT INDOORS 11.28 9 71 TECHNOLOGY DR IRVINE CA HARDEE's 7 None known to be in area HOT STUFF PIZZA 9 None known to be In area INTERNATIONAL HOUSE -PANCAKES 4.92 9 3125 HARBOR BLVD COSTAMESA CA JIMBOY'STACOS 15.91 Both 11213 PROSPECT DR MARTELL CA JOE'S CRAB SHACK 12.16 Both 12011 HARBOR BLVD GARDEN GROVE CA JOHNNY ROCKETS 8.92 9 7801 EDINGER AVE HUNTINGTON BEACH CA KOHL'S DEPARTMENT STORES 8.05 9 7777 EDINGER AVE HUNTINGTON BEACH CA L AND L HAWAIIAN BBO 5.53 9 19692 BEACH BLVD HUNTINGTON BEACH CA LABOU Both None known to be In area LONE STAR STEAKHOUSE&SALOON 1159 7 1222 IRVINE BLVD TUSTIN CA LOWE'S 9 None known to be In area MARSHALLS 5.75 9 901 S COAST DR COSTA MESA CA MASTRO'S 506 9 8112 E COAST HWY NEWPORT BEACH CA MOUNTAIN MIKE'S PIZZA 7 None known to be In area MRS FIELD'S ORIGINAL COOKIES 1048 9 2066 WESTMINSTER MALL WESTMINSTER CA NAPA AUTO PARTS 9.54 7 6423 EDINGER AVE HUNTINGTON BEACH CA NORDSTROM 5.90 9 3333 BRISTOL ST COSTAMESA CA NORDSTROM RACK 575 Both 901 SCOAST DR COSTAMESA CA OLD COUNTRY BUFFET 7 None known to be In area OMAHA STEAKS 6.58 7 16563 MAIN ST HUNTINGTON BEACH CA PAPA MURPHY'S TAKEN' BAKE 9 None known to be In area PERFORMANCE BICYCLE 7.55 Both 8850 WARNER AVE FOUNTAIN VALLEY CA PLANET BEACH 10.86 Both 8687 IRVINE CENTER DR IRVINE CA POPEYES FRIED CHICKEN 8.51 9 16388 BEACH BLVD WESTMINSTER CA PORTILLOS 10.47 9 8390 LA PALMA AVE BUENAPARK CA PRETZELTIME 41.09 9 10800 W Pico BLVD LOS ANGELES CA ROMANO'S MACARONI GRILL 5.99 9 595 ANTON BLVD COSTAMESA CA SAKS FIFTH AVENUE ENTERPRISES 590 9 3333 BRISTOL ST COSTAMESA CA SCHLOTZSKY'S DELI 12 Be 9 22611 LAKE FOREST DR LAKE FOREST CA Distance Is the straight-line mileage from your site to nearest existing retailer location. Community19 8/5/2008 Retailers with locallons greater than fifty miles from this site are shown -None known to be In area.' Newport Beach, CA Retail Match List Cannery Village These retailers are aood matches for possible future development Retailer Distance Drive Time Address city State SHULA'S 35.06 Both 6101 W CENTURY BLVD LOSANGELES CA SPORT CHALET 5.85 9 3333 BEAR ST COSTA MESA CA SPORTS AUTHORITY 623 9 3900 S BRISTOL ST SANTAANA CA STEAK ESCAPE 8A3 9 3800 BARRANCA PKWY IRVINE CA SUPER SUPPERS 665 7 17900 MAGNOLIA ST FOUNTAIN VALLEY CA SWEETTOMATOES 418 7 1555ADAMSAVE COSTA MESA CA TGI FRIDAY'S 5.92 9 663 ANTON BLVD COSTA MESA CA THE SPORTS AUTHORITY 1 6.23 9 3900 S BRISTOL ST SANTAANA CA VILLAGE INN FAMILY RESTAURANT 12.68 9 2110 S HARBOR BLVD ANAHEIM CA WHOLE FOODS MARKET 9.61 7 283 BROADWAY ST LAGUNA BEACH CA ZUMIEZ 82fi 9 2473 PARK AVE TUSTIN CA Retailers locations greatern Olslance is Na straight-line mileage Commun4lg Billy miles from this site am shown from your site to nearest existing "None known to be In area." retaileriocation. 8/5/2008 Newport Beach, CA Retail Match List Cannery Village These retailers match well but their existing locations are in close proximity of your site. Retailer Distance I Drive Time - Address City State 24 HOUR FITNESS' . 2.15 1 9 556 W 19TH ST COSTA MESA CA AARON BROTHERS INC 1.79 1 7 1714 NEWPORT BLVD COSTAMESA CA ACEHARDWARE 1,63 9 1024 IRVINE AVE NEWPORT BEACH CA ANTHROPOLOGIE 2i97 9 823 NEWPORT CENTER OR NEWPORT BEACH CAC AVENUE 2.92 9 2200 HARBOR BLVD COSTA MESA CA BAJA FRESH. 1.68 9 171 E 17TH ST . COSTA MESA CA BASKIN-ROBBINS ICE CREAM 2.25, 9 , 1927 HARBOR BLVD COSTA MESA CA BCDG 3.14 Both 241 NEWPORT CENTER DR NEWPORTBEACH CA BEBE ", 2,68 . '9 '' 811 NEWPORTCENTER DR NEWPORTBEACH CA BIG 5 SPORTING GOODS 3.21 9 2324 HARBOR BLVD COSTA MESA CA BJS BREWERY 1.87 'Both 106 MAIN ST NEWPORTBEACH CA BORDERS 2.18' 9­ Vase NEWPORT BLVD COSTA MESA CA' BRIGHTON COLLECTIBLES 3.18 9 890 AVOCADO AVE NEWPORT BEACH 'CA BRISTOL FARMS 3d4 9 810 AVOCADO AVE . NEWPORTBEACH CA BRUEGGER'S BAGEL BAKERY Lao Both 498 E 17TH ST ' COSTA MESA, CA BUILD A BEAR 2.92 Both ! 925 NEWPORT CENTER DR NEWPORTBEACH CA, CARL'S,JR RESTAURANT 0.18 9, 3101 NEWPORT BLVD NEWPORTBEACH CA CARQUEST CORP 2.11 9 803 WEST 9ITH STREET COSTA MESA CA CHEESECAKE FACTORY RESTAURANT 2,95 9 1141 NEWPORT CENTER DR NEWPORTBEACH CA CHICO'S 321 i9 956 AVOCADO'AVE NEWPORT BEACH CA CHILDREN$ PLACE 2.95 9 873 NEWPORT CENTER DR NEWPORT BEACH CA CIRCUIT CITY 2.98 9 1101 NEWPORT0ENT2R'DR NEWPORT BEACH CA' CLAIRE'S BOUTIQUE 2,94 1 9 1021,NEWPORT CENTER DR NEWPORTBEACH CA COCO's BAKERY RESTAURANTS INC 3.05 9 151 NEWPORTCENTER OR NEWPORT BEACH CA COFFEE BEAN'&TEA LEAF 2.03 9' '1835 NEWPORT BLVD, COSTA MESA CA, COLD STONE CREAMERY 1.78 Both 60D E BAYAVE NEWPORT BEACH ' CA COLDWATER CREEK 0.57 Both OCEAN AVE AT MISSION ST CARMEL-BY-THE-SEA CA CURVES 0180 9 325 OLD NEWPORT BLVD NEWPORTBEACH CA CVSPHARMACY 1.62 9 1020 IRVINE AVE NEWPORT BEACH CA DEL TACO RESTAURANT 1.68 9 1720 SUPERIOR AVE COSTA MESA CA' DENNYS RESTAURANT 1.65 9 105 E 17TH ST COSTA MESA CA DOMINO-S PIZZA 1.60 9 277 E WTH ST COSTA MESA CA DRAPER'S&DAMON'S INC 1.67 9 1082 IRVINE AVE NEWPORT BEACH.' ',CA FLEMING'S PRIME STEAKHOUSE 3,24 9 455 NEWPORT CENTER DR NEWPORT BEACH CA GENERAL NUTRITION CENTER 214 9. 1870-B 132 HARBOR BLVD COSTA MESA CA HALLMARK 2.05 9 869 NEWPORT CENTER OR NEWPORT BEACH CA ICI PAINTS 2.21 9 1901 HARBOR BLVD COSTAMESA CA JAMBA JUICE 2.03 Both 1835 NEWPORT BLVD COSTA MESA . CA KFC 0.18 9 3107 NEWPORT BLVD NEWPOIRT BEACH CA KRAGENAUTO SUPPLY 1.71 Both 1739 SUPERIOR-AVE COSTAMESA CA MARIE CALLENDER'S RESTAURANT 1.57 9 353 E'17TH ST COSTAMESA' CA MICHAELS ARTS & CRAFTS STORE 1.04 9 610 W 17TH ST COSTA MESA CA, MIMPS CAFE 2.03 Both 1835 NEWPORT BLVD COSTAMESA CA NEIMAN MARCUS 3.26 9 601 NEWPORT CENTER DR NEWPORTBEACH ,CA NINE WEST GROUP INC 3.03 9 101 NEWPORT BEACH CENTER NEWPORTBEACH CA' OUTBACK STEAKHOUSE 4.62 '9 1670 NEWPORTBLVD' COSTAMESA. . CA. PACIFIC SUNWEAR 295 9 881 NEWPORT CENTER DR NEWPORT BEACH CA PANERA'BREAD . 1.03 Both, 235 E 1TrH ST „ , COSTA MESA CA PARTY-AMERICA 3,63 Both. 1500 E,VILLAGE WAY ORANGE ' ' CAI Distance Is the straight-line mileage from your site to nearest existing retaileriocation. Community19 8/512008 Retailers with locations greater than fifty miles from this site are shown "None known to be In area.- Newport Beach, CA Retail Match List Cannery Village .. f These retailers match well but their existing locations are in close proximity of your site. Retailer Distance I Drive Time Address _ city State PAVILIONS 0.36 1 �9 3433 VIA LIDO NEWPORT,BEACH CA PEETS COFFEE & YEA INC 1.59 Both, 424 E 17TH ST COSTAMESA' CA PLAY IT AGAIN SPORTS 2,81 Both 2159 HARBOR BLVD COSTA MESA CA OUIZNO'S CLASSIC SUBS 203 1 9 1835 NEWPORT BLVD COSTA MESA CA RALPH'S GROCERY' COMPANY V59 Both 380'E 17TH ST COs7A-MESA CA RED WING SHOE STORE 2.87 9 2180 HARBOR BLVD COSTA MESA CA RITE AID 164 9 214 E 17TH ST COSTA MESA CA ROSS 1,80 9 209 E 17TH ST COSTAMESA .. CA ROUND TABLEVIZZA RESTAURANT 1.67 .7 204 E iTTH ST COSTA MESA CA RUBYS DINER 1.59 9 428 E 17TH ST COSTA MESA CA SAFEWAY STORES INC 0.36 ,9. 3433 VIA LIDO., NEMORTBEACH CA SSeS CANDIES INC 3.68 9 3501 EAST PACIFIC COASTi-0GHWAY CORONADELMAR .I CA SHERWIN•WILLIAMS CO 3.22 9 2338,HARBOR BLVD COSTA MESA CA' STAPLES THE OFFICE SUPERSTORE 1.63 S 241517TH ST COSTAMESA .CA STARBUCKS 0.37 9 3465VIALIDO NEWPORT BEACH CA' SUPERCUTSINC 1.63 9 270E 17TH ST COSTAMESA CA TACO BELL 085 9 14o0WCOASTHWY NEWPORTBEACH CA TOGO'S EATERY .3.15 Both 2300HARBORBLVO COSTA MESA CA TOMMYBAHAMA 3.16 9 854 AVOCADO AVE NEWPORT BEACH CA ULTA ALL 1.70 Both 10801RVINEAVE NEWPORTBEACH CA WET SEAL '2198 9 _ 1103 NEWPORT CENTERIDR STE E ,,; NEWPORT BEACH. ,CA WHITEHOUSE .3.15 9, 840AVOCADOAVF _ NEWPORT BEACH CA WIENERSCHNITZEL 2.31 7 1951 HARBOR BLVD COSTAMESA .,CA I D CommunkylU Retailers with lmthis sears moan Distance Is the straight-line mileage fifty miles from this site are shown from your site to nearest existing "None known to be in area." retallerloca8on. 6/5/2008 Community la Proposal to Develop: A RETAIL ECONOMIC DEVELOPMENT STRATEGY For: City of Newport Beach, CA From: Lisa Hill May 15, 2008 INDEX EXECUTIVE SUMMARY INTRODUCTION TO BUXTON III. NEEDS/CHALLENGES IV. GOALS/DESIRED RESULTS V. PROCEDURES/SCOPE OF WORK VI. PROJECT TEAM VII. PROJECT REQUIREMENTS VIII. TIMELINE IX. FEES FOR SERVICES X. SIGNATURE PAGE Community/9 I. EXECUTIVE SUMMARY Buxton's Community/DO program is a total retail identification and marketing program designed for community economic development programs. Per this contract, Buxton agrees to analyze three (3) commercial villages and/or retail sub -areas in order to determine the overall retail potential for each. Buxton integrated proprietary technical capabilities with more than 500 cumulative years experience in retail management and local economic development to create Community/DO. This unique strategy has brought both innovation and a disciplined approach to municipal retail development efforts. Trade area, based on our drive -time methodology, will be determined for each commercial village. Psychographic analysis will be done for each trade area to determine buying power, lifestyle characteristics, and consumer profiles for customers within the trade area. In addition, market viability will be determined for each trade area to identify the most sustainable retail/restaurant concepts. A retail leakage and surplus analysis will be done to analyze gap and overlap in the market. An overall retail concept list will be provided for each studied site. The City of Newport Beach will then be asked to select the top six (6) desired concepts for each site for the creation of marketing packages. Buxton will design these packages on behalf of the City of Newport Beach in order to speak each specific retailer's language. The packages are tailored to fit the profile of the retailer, as it aligns with the City of Newport Beach. During the 60 business days it takes to complete Community/D®, civic leaders are actively involved in the process and make important decisions that guide the direction and results. The four main phases of the process are: Researching and Verifying Newport Beach's Retail Trade Area This phase starts with the in-depth collection of the same location variables that Buxton uses to qualify locations for retail clients. Because of Buxton's unique capabilities, we can translate this retail -specific information into market intelligence that community leaders need to attract and grow their retail sectors. Evaluating Newport Beach's Retail Potential The evaluation phase will clarify what makes Newport Beach distinctive and valuable from a retailer's viewpoint. Through daily involvement in retail location analysis, Buxton has acquired the unmatched ability to evaluate a community's retail potential. Bugglon U Community/9 Matching Retailers and Restaurants to Newport Beach's Market Potential The consumer profile of Newport Beach's trade area will be matched against the customer profiles of over 5,000 retailers and restaurants in Buxton's proprietary database. The final match list is developed with the input of community leaders so that it reflects the needs and desires of the residents. Delivering Newport Beach's Marketing Packages Individual marketing (pursuit) packages for each retailer match are delivered in both hard copy and in SCOUT®. Our exclusive online marketing system, SCOUT® helps you to showcase your city in the best light. It gives you the ability to create presentations and quality documents and to share information in the match reports. With CommunitylD9,N ewport Beach can unleash its full retail potential, seize new retail opportunities and expand existing businesses. The signing of this agreement seals a lifetime partnership between the City of Newport Beach and Buxton. This agreement includes the following: • Admission to (6) webinars per year . An invitation to the Buxton reception with retail clients at ICSC . Permission to use the Buxton booth at ICSC to host meetings with potential retail concepts and the ability to distribute marketing materials to potential retailers and developers . On -going support for the life of the project Bwffon° CommunitylD° II. INTRODUCTION TO BUXTON Since our founding in 1994, Buxton has been a leading force in retail location and development. We are recognized for creating solutions that provide results. Buxton began as a service to help retailers make informed site selection decisions by understanding their customers and precisely determining their markets. Buxton leaders soon realized that the company's expertise in retail location and market analysis could also be leveraged to benefit communities desiring retail expansion. Please note that in this proposal the term "retail" is inclusive of all retail concepts. Community/D® Designed specifically for use in community economic development programs, Buxton's Community/DO process has assisted more than 350 public sector clients nationwide, resulting in the development of more than 15 million square feet of retail space. We integrate our impressive technical capabilities with more than 500 cumulative years of retail management and local economic development experience to help municipalities achieve their retail goals. More than simply providing data, Community/DO supplies custom marketing materials and strategies targeting the unique location requirements of retailers, developers and commercial real estate brokers. Community/DO clients achieve outstanding success using our tools for retail identification, selection and recruitment. And our clients benefit from our unique understanding of retail site selection from the retailer's point of view. The combination of technical expertise and professional guidance gives municipalities the capacity to immediately implement an effective retail development program. Benefits of Community/DO With Community/DO you have immediate access to: • Retail Industry Expertise. Gain a competitive position by working with professionals who have years of retail management experience plus current insights into your community and site selection processes and trends. • Community Development Best Practices. Expand and sharpen your retail development focus by incorporating best practices discovered by Buxton through daily work with municipalities across the nation. • Proprietary Systems. Gather useful information by having Buxton's technology specialists analyze your trade area accessing data stored on Buxton's in-house databases. CommunitylU • Personalized Content. Advance your retail recruitment program by receiving personal guidance from our staff and ongoing insight into key industry topics via our monthly e-newsletter, webcasts and other interactive tools. • Long -Term Partnership. As a Buxton client and partner you have unlimited access to our staff to help optimize your marketing efforts at the International Council of Shopping Centers (ICSC) annual meeting in Las Vegas, NV. • Marketing Data and Tools. Enhance your marketing messages and presentations by using SCOUT®, Buxton's online trade area database and marketing tool, available to you for one year after project delivery. • Add -On Research. Keep your Community/DO updated and focused by getting special rates on additional research, including retail marketing packages and refreshes of basic information. 4 I� Community19 III. NEEDS/CHALLENGES Newport Beach wants to understand and then capitalize on the retail development opportunities. As communities increasingly compete for retail dollars, attracting the attention of retailers has become more challenging than ever. Marketing your community plays a dominant role in today's competitive economy. The challenge for the community is to attract retailers and developers by providing trade area information that is complete, accurate and up-to-date. Using our proprietary methodologies, Buxton will collect and analyze your community's trade area information and give it to you in a format that is easy -to - use and appealing to real estate executives and developers. The best information, however, is useless without a plan for using it. Much more than data collection, Community/DO is an execution strategy that can help you build or revitalize your existing marketing and economic development program. With Community/D®,y ou will be prepared to: • Achieve your retail potential by establishing a long-term partnership with Buxton • Integrate retail development into your economic development program • Increase your success by preparing Newport Beach to meet the needs of retailers • Effectively position your community by leveraging your locations' strengths and minimizing weaknesses • Convey Newport Beach's advantages over competitors' advantages • Establish credibility with retail decision makers • Maximize time and resources by not pursuing unqualified prospects • Win the confidence and trust of prospects by understanding their priorities • Use competitive analysis to close the sale CommunitylU IV. GOALS AND DESIRED RESULTS The primary goal of Community/DO is to prepare Newport Beach to successfully expand its retail sector. Community/DO serves as the framework for developing a sustainable marketing program that not only achieves short-term goals but also endures to ensure the economic viability of the retail sector over the long-term. Such a marketing program will bring the following desired results: Residents' desires to shop and dine at home will be fulfilled • Retail leakage will be minimized • Tax revenues (property and sale/use taxes) will increase • Employment opportunities will grow Newport Beach's ability to capture other economic opportunities will be enhanced Community19 V. PROCEDURES/SCOPE OF WORK Once you have engaged Buxton to work with you in developing Community/D, a project team will be assigned to guide you through the entire process —from initial data collection to final presentation of the results. This team consists of: Client services manager, Denise Barley, who will serve as your primary source of communication during the project Geographic Information System specialist, who will analyze your trade areas and create customized maps and reports Professionals with backgrounds as retail executives and economic development practitioners, who will address your unique challenges and help maximize Newport Beach's retail opportunities Staff Visits During visits to the community, Buxton's staff is able to make clear and candid assessments of the community's strengths, weaknesses and potential by using the same analytical programs and location matrixes that are used to qualify communities and sites for our retail clients. Our daily involvement with over 1,700 retail and restaurant clients in finding optimal locations keeps us current on retail location trends. This provides a rational and analytical basis for helping Newport Beach decide how to best focus resources on the most promising retail opportunities. Data Collection Buxton uses over 250 consumer and business databases that are updated throughout the year, and in some cases, every month. Although it is possible to obtain these databases for less expense on a community or regional basis, Buxton buys and is licensed to use the complete U.S. datasets. With this information Buxton will compare Newport Beach's potential location to the universe of all retail locations operating in the U.S. The following are some of the more well-known sources used in our studies, but there are dozens more that we employ to provide additional insight: • Mediamark • Acxiom • InfoUSA • Claritas • National Research Bureau • Navteq Geographic Data • Dunn & Bradstreet Business Data Community/U Identify Market Influencers All communities have special and often unique features that impact the local retail market and have to be taken into consideration to fully understand the market potential of the community. Such influencers include larger ethnic populations, significant new or expanded developments, military bases, universities and colleges, destination tourist attractions, prisons, medical facilities or major employers. After identifying these market influencers in your community, Buxton will quantify and qualify their influence on the retail market and help to match retailers that can capitalize on these customer bases. You will benefit from the project team's expertise and insight in these four areas: 1. Researching and verifying Newport Beach's retail trade area 2. Evaluating Newport Beach's retail potential 3. Matching retailers and restaurants to Newport Beach's market potential 4. Delivering Newport Beach's marketing packages These four major components comprise the Community/DO process. Each component is explained in detail as follows: 1. Researching and Verifying Newport Beach's Retail Trade Area The location decision process for all retailers begins with the collection, analysis and evaluation of numerous location variables such as demand density, customer buying habits, economic trends, competition, traffic volumes, and available sites, to name a few. The Community/DO process for Newport Beach will also start with the in-depth collection of data using the same location variables that we use for our retail clients to qualify sites for the location of their retail stores and restaurants. One goal is to define current retail situations in Newport Beach, in the trade area and in any neighboring communities that impact on Newport Beach's retail environment. The other goal is to understand the community's expectations and desires. This analysis includes personal visits to the community, collection of data components necessary to conduct the analysis and identification of market influencers. Buk,con Community/9 Drive -Time Trade Area Definition Customers today shop by convenience, measuring distance based on time, not mileage. Community/D® will employ a custom drive -time analysis to determine Newport Beach's trade area. An example of a drive -time trade area is shown in Figure1. This custom analysis is developed using an in-house database supported by our knowledge of individual retail client's actual trade areas. The resulting drive -time trade area map will be a polygon that more accurately depicts consumer shopping patterns than trade rings. To assure the accuracy of the drive -time trade area, the draft maps are reviewed with community leaders and verified before proceeding with the next step. Figure 1.Example - Drive -Time Trade Area CommunitylU 2. Evaluating Newport Beach's Retail Potential The purpose of the evaluation phase is to understand what makes Newport Beach distinctive and valuable from a retailer's viewpoint and scrutiny. Our evaluations capitalize on Buxton's knowledge about the retail marketplace and the location requirements and expectations of retailers. Combining this knowledge with our economic development competencies allow us to evaluate and recommend proven community practices. Our evaluations do not rely on dated government research or national/state statistics, all of which fail to reflect local realities. Rather, we implement our real -world experience gained from working with municipalities that have opened more than 15 million square feet of new or expanded retail space. We know how to help Newport Beach sharpen your retail marketing strategy, aggressively market the city and improve your competitive performance. Retail Leakage/Supply Analysis The Retail Leakage/Supply Analysis provides an estimate of retail dollars flowing in or out of the trade area. The two main components of this analysis are: 1) current actual sales (supply) by retail store type and products, in dollar amounts, and 2) estimated sales potential (demand) for retail store type and products, in dollar amounts. We first calculate a sales gap index that illustrates your ability to capture your residents' expenditures. An example of this index is shown in Figure 2. The sales gap index provides a relative comparison of leakage/surplus and an estimate of the dollars that are being spent outside the trade area (leakage) and the amount of dollars coming in from outside the trade area (surplus). This report can be run via SCOUT at any location within the map view Figure 2.Example - Sale Gap Index 10 CommunitylD" Customer Profiling The CommunitylD® process will identify and analyze all the households in Newport Beach's drive -time trade area. Based on more than 4,500 categories of lifestyles, purchase behaviors and media reading and viewing habits (psychographics), the households in your trade area are assessed to gain an understanding of the types of retailers that would be attracted to your community. Our in-house databases include both traditional demographic data and the most current psychographic lifestyle information for over 120 million households in the United States (as well as up to seven individuals living in each of these households). Each household in a trade area falls into one of 66 market segments reflecting the buying habits of customers in the household. The blue line in Figure 3 graphically profiles the households in a city's trade area. Figure 3: Example - Psychographic Profile .AA7 —Poimmttan�aa II in-i CommunitylU 5 .V � . _ r s =may. . ' . -_ Retail Site Assessment Buxton will analyze up to three (3) distinct retail locations, selected by Newport Beach. Based on our collective experience in retail locations, the following factors are considered: • Psychographic analysis of households in trade area • Demand for retail goods and services • Site setting, situation and configuration • Growth plans and relevant development • Retail goals of the community Newport Beach to select the retail site to be used for retail matching. Buxton will develop a demand density profile of Newport Beach's three (3) distinct trade areas. Demand density measures the bottom -line value of the customers in the trade area —who they are, how many there are and what they buy. One of the significant advantages of Buxton is our ability to take the demand density data and to creatively translate it into a proactive market strategy tailored to take advantage of Newport Beach's strengths and to achieve its retail goals. 3. Matching Retailers and Restaurants to Newport Beach's Market Potential Once the consumer profiles in Newport Beach's trade area have been determined, the Community/D8 process will match these profiles against the customer profiles of 5,000+ retailers in our proprietary database. In Figure 4, the blue line indicates the customer profile of households in a community's trade area. The red line represents a specific retailer's customer profile. A similarity between the two profiles as shown in Figure 4 analyzed using Buxton's proprietary retail matching algorithm concludes that this site is an opportunity for a specific retailer to open a successful store. This matching results in a list of possible retailers. To develop the preliminary retail match list, Buxton analyzes a number of factors about each possible retailer to qualify it. This analysis is designed to eliminate those retailers that for any reason would.not be a candidate for Newport Beach. Considered in this analysis are such factors as, verification of a retailer currently operating or expanding into your market, location of operations in similar cities, and competition and cannibalization from nearby locations. Once this analysis is complete, the preliminary list of retailers will be discussed and reviewed with Newport Beach. Based on the selections by the sponsor, a final list of up to six (6) retailers, per site studied, will be created for the development of marketing (pursuit) packages. I� CommunitylD" .-��..x-_'i�,,.a,•_:�.:, :+ur 6tr,ics.�S�':�c�z;.a,< a , r ---- u pzricro—iQkf:nllOt3tT P 0 3 0 1134 5678 QIC11158I05IOI71HCt2Y�3:�L.°L�tI@CA1U931llf7.✓0`ACiKN:fiK517f7i81�OSt'dYCSOf1.'g�•A3>31CID0 4. Delivering Newport Beach's Marketing Packages Buxton will assemble individualized marketing (pursuit) packages for each targeted retailer. At Newport Beach's request, Buxton will customize each marketing package for presentation to individual retailers, developers, real-estate brokers or potential franchisees. Because it is tailored to the specific needs of the target audience, each marketing package is ready to use as collateral marketing materials providing compelling and precise information that demonstrates Newport Beach's qualifications as a location. Each marketing package contains: 1. Map of the retail site and trade area 2. Map of retailer's potential customers 3. Retailer match report that compares the site's trade area characteristics with the retailer's locations in similar trade areas 4. Demographic and psychographic profiles of the households in the trade area 5. Contact information for the person at the retailer who has location decision responsibilities CommunitylD^ targets not only specific companies but also the individual in the company who has the responsibility for location decisions. To provide the best possible reception when Newport Beach contacts the targeted retailer, Buxton notifies each company that Newport Beach has been qualified by Buxton as a potential viable location for a store, restaurant or development and should expect to be contacted by a representative of the city. Birgon 13 Community/9 Figure 5: Example - Retail Match Report (Retail Match Report summarizes a city's location advantages for a specific retailer). 14 Community/9 rU Communitylff Retailer Match Company: XYL Company site: State Highway 78d & oice Aoad Report Date: 41151200E Your Community, USA Segmentation Profile(l) (15 Minute Drive Thtf) ®Camporry Prof)e(DominmltS"menla)n1 ®Compmry Pra'ie(. C"Segmems) SPA Prorl*M rode lm OMPd M (IS Hka I*M Tine) Your Community, USA XY2 Company Site Trade Area Avenge Trade Areak 2003 estimated 2008 Projected Total Population 43,92S 49596 41,311 Total Houstheldi 17,278 17,817 18,90) Aetaler Dominant Segment Househow 9,772 RITD 13,612 Daytime (Workday) PopalAiontO IMID 27,160 29,827 1'1Sgim�ntalion PronN Easy VS,nwwttfl 1pJusmoa lnboga6l EGttatleclsggngra agwpoab/f7Wro.wgsNsrrosplo aw spnrarg nanta m On>a71ma DnSnmanls Any $#2mvAftjtoj"vp Nor,"oneaaa.peonlot4 re➢Hsluped Work (RCpOMS. wSlaft.II Tau ""Ws wft,nT4dY41W lirnOde qrw (SIUELNE). MA>oloaa Traea AWa XY2Ccn�ae/fraagarmx usgl In Cre caaaerkmam ena:rnfey r>yateMaarkelgFota Yar Wlxvnity, 179A. 1b 0lyIIMPofLiRbq 'mq rtmauglpaxgmaau�oa Nl>AGnvgtlee:'agq gfgi 15 CommunitylD' DELIVERABLES CommunitylD® deliverables will be presented to Newport Beach in two bound hard copies and in SCOUT®, an electronic format (described below). SCOUT® is an online marketing system that will allow you to effectively use Community/DO by enabling you to showcase your selected retail sites to achieve maximum results. You can access Community/D9 reports via SCOUT® to reproduce maps, site -specific data and generate your own custom marketing presentations. With SCOUT® you are directly tied to Newport Beach password protected data, maintained and updated in Buxton's databanks. Using your computer you can tailor reports and presentations and immediately respond to questions or information requests from retailers or developers. SCOUT® allows you to: • Graphically display and count the households that appeal to specific target retailers • .Manage all your retail -specific data, from maps to photos to zoning information, in a central location • Merge your community's existing marketing materials with Community/DO • Select the information that best makes your case • Store and retrieve information on retail buildings and sites • Organize all relevant retail information in a central data center • Present all materials electronically to recruit retailers and developers Deliverables include the following: • Drive Time Trade Area Maps — Three (3) maps, one per site • Retail Site Assessment — includes Retail Leakage/Supply Analysis and Customer Profile for each of the three (3) sites studied • Retail Match Lists of overall retail opportunities for each of the three (3) areas, Newport Beach may select six (6) retailers per site (18 total) to build Pursuit Packages for recruiting efforts • Final Reports and Marketing (Pursuit) Packages - Newport Beach will receive two hard copies, a PDF version and each of the 18 marketing packages will be loaded onto SCOUT for the City's use • An electronic presentation highlighting the Community/DO process and findings will be a part of the deliverables. It is designed for local presentations to chambers of commerce, civic clubs and other groups interested in the retail development of Newport Beach. 16 IF Tkr7 Community/9 Details about the Marketing (Pursuit) packages: The City of Newport Beach will receive a list over the overall retail opportunity for each of the 3 villages selected. Every retail/restaurant opportunity that is a match based on your customer picture will be provided for your review. Whether you have 30 or 3000 retail matches per site, we will give you a list of your entire retail opportunity. At that point, Buxton will allow the City of Newport Beach to select 6 Retailer per site (18 total) to build pursuit packages for the purpose of recruitment. The Pursuit package allows you to showcase your community to a specific retailer in a manner of relevance to them (customer data, market viability, trade area, square footage requirements, growth patterns, comparable markets and trade areas, etc). You will receive two hard copies of each package; in addition to a PDF version. Also, each of the 18 marketing packages will be loaded onto SCOUT for your use. Community/9 VI. PROJECT TEAM Team members for your project will include Buxton personnel with strong retail and economic development backgrounds as well those from operations: the Territory Business Manager, appropriate Senior Vice President and Client Services representative. Lisa Hill Territory Business Manager CommunitylD® Division As a CommunitylD® territory business manager, Lisa works with municipalities in their retail economic development efforts. By understanding what retailers need to make site selection decisions, Lisa enables community leaders to understand and "speak retail." Prior to covering California, she focused on communities in Missouri and Kansas. Lisa brings a strong knowledge of the CommunitylD® retail economic development strategy and a solid background in client service to her position. Lisa received her B.A. degree from Texas Wesleyan University and is a member of the International Council of Shopping Centers (ICSC). �J Amy Wetzel Senior Vice President, Community/DO Division, Western Region Amy brings more than 15 years of marketing, retail and business development experience to her position. Prior to joining Buxton, Amy held positions with the Colleyville (Texas) Chamber of Commerce, Baylor Health Care System and Andersen. Amy has worked with numerous communities to establish or enhance their retail recruitment strategies and has been a featured presenter at many organizations, including -the Association of Washington Cities, the Urban Land Institute, the National League of Cities, and the League of California Cities. She is a member of the California Association of Local Economic Developers, the California Redevelopment Association and the Association of Washington Cities. Amy holds a bachelors degree in communications from Baylor University. 18 Community/9 a t tr.V fit:., mill, R�_I, 4 Philip Davis Manager/Senior GIS Analyst Community/DO Division As senior analyst for the Community/DO division, Philip oversees every aspect of Community/DO projects in Buxton's GIS department. His duties include supervising daily operations, working with clients, managing projects and serving as a liaison between analysts and the sales team. Philip has managed the GIS function for more than 350 Community/DO projects for such clients as San Jose, CA; Atlanta, GA.; and Birmingham, AL. Working on projects for two divisions in the company has given Philip a complete understanding of both the retail industry and municipal needs, adding to his expertise in community retail recruitment. Philip graduated from the University of North Texas with a degree in Geography. Bill R. Shelton, CEcD Partner Community/DO Division Bill is a founding partner of Community/DV, Buxton's retail development program for communities. For more than 20 years, Bill worked for the Fort Worth Chamber of Commerce, serving 16 years as its president. He is a Certified Economic Developer and is past chair of the American Economic Development Council. A founding member of the Texas Economic Development Council, he has served as the organization's president. Bill was honored with a lifetime membership to the International Economic Development Council. Bill's professional service also includes serving as dean of the Basic Economic Development Course at Texas A&M University. Bill holds a bachelor's degree in marketing from the University of Texas at Austin, and he completed post -graduate studies at Texas A&M University. 19 Community/9 S?+�-, IS'"4shs4Wy�a�E�a�a„ Harvey H. Yamagata Chief Marketing Officer & President Community/D9 Division Clients benefit from the expertise Harvey has gained during 35 years in retail, including leadership roles in brick and mortar, catalog and website retailing. His 20-year career at Tandy Corporation covered the time when the company grew from $350 million to $3.5 billion in sales and took him from retailing in Europe to opening distributors in Asia. He headed the marketing efforts of the RadioShack Business Products division at a time when they held the major share in the burgeoning personal computer market. Harvey received a bachelor's degree from the University of Wisconsin and a master of business administration degree from Texas Christian University. 20 1 Communityla VII. PROJECT REQUIREMENTS To effectively initiate this project, we request that you provide the following: 1. Project Liaison • Newport Beach will designate a project manager (Lisa Hill) who will serve as Buxton's primary contact during the project. 2. Community Information and Reports • City logo (vector file —request your ad agency and/or printer) • Addresses and descriptive information for up to three sites that will be evaluated • Current traffic count data • List of planned retail, commercial or mixed use (either proposed or in development) in the community • List of major, national or regional retailers that have closed, left or moved from the community • General community marketing materials, data and economic reports Project Launch A conference call with representatives of Newport Beach and the Buxton Project Team will officially launch the project. The project launch will occur when: 1. An agreement is executed 2. The initial payment is received, and 3. The Community Information and Reports are received Buy ton 21 rO CommunitylD' VIII. TIMELINE The following timeline is sequential and cumulative. It starts on the day of the project launch conference call. Business Days Client Responsibilities Buxton Responsibilities Start Provide to Buxton all necessary community information. Day 1 Participate in the launch call. Participate in the launch call. Day 6 Trade Area Map ships. Day 13 Approve Trade Area Map. Day 18 Retail Site Assessment ships. Approve Retail Site Assessment Day 25 and submit selection of site for retail matching. Day 40 Retail Match List ships. Submit selections of all retail Day 50 matches to be included in the Final Report and Retail Marketing Packages. Day 60 Final Report and Retail Marketing Packages ship. By adhering to this timeline, the Community/DO deliverables (Retail Match Reports — both the hard -copy and SCOUT®, the electronic version) will be sent on or before 60-days after the launch date. Any missed target dates can delay the final delivery date. If there are extenuating circumstances that prevent target dates from being met, a new timeline will be developed. Delays of more than 45 days in timeline schedule by the community will result in an administrative fee of five percent (5%) of the contract price to be charged. 22 M CommunitylD° IX. FEE FOR SERVICES The Cost of CommunitylD® is $75,000; payable as follows: 1. $15,000 due upon execution of this agreement 2. $35,000 due upon delivery of retail site assessment 3. $25,000 due upon delivery of retail marketing packages Hard copies of all CommunitylD® deliverables including marketing packages will be provided. SCOUT® will be delivered for one-year with this agreement and includes the following: 1. Waived - Monthly maintenance fee of $1,000 per month 2. Two Marketing (Pursuit) Packages at no cost After the first year SCOUT® will be available for a $1,000 per month maintenance fee that is not included in this agreement. For services specifically requested by Newport Beach and performed by Buxton outside the scope of this agreement, an hourly rate of $200 will apply. Additional Research Services (post analysis) Marketing (Pursuit) Packages (Match reports for additional specific retailers) - Includes two bound hard copies and an electronic version $1,500 23