EDOs & Retail DevelopmentA New Type of Ombudsman

April 10th, 2014

EDOs & Retail Development – A New Type of Ombudsman

Introduction

Who the heck is Cushing Terrell?

What can and should an EDO be doing?

Look to your Peers?

City of Spruce GroveCity of LethbridgeCity of Grande Prairie

Final Thoughts?

How do we find some new “targets”

WHO THE HECK IS CUSHING TERRELL?

Multi-disciplinary architectural, engineering and planning firm est 1938

365+ Employees (95+ LEED)

Retail / Industrial / Commercial / Ranch Resort / Education / Health Care

Vancouver, BC; Regina, SK; and 15 other locations across US

Top 250 Architectural Firms - Architectural Record

300 Giants - Top 50 Architectural & Engineering Firms - Building Design & Construction

What & who are you waiting for?

Being proactive is essential

I guess we’re safe for now, but why Nanaimo?

I heard Cabela’s is going to Nanaimo?

How well do you really know your market?

Why do tenants choose one location or city over another?

Validate the Anecdotal

Understand your market and your market will understand you!

Just because you know a market, doesn’t mean other developers, investors or tenants do!

“Objective Cheerleading”

Surprise people with “light bulb” moments

Demographics are easy, but what else can you provide that isn’t generic, has value and can validate the opportunity?

Competition for Developer, Investor & Tenant $$$$

You’re not the only one with an opportunity! BE PREPARED

Reach out and put a face to names or companies

Give your municipality leverage and create

awareness

Have a strategy for being proactive

Cities of Canada Pavilions

ICSC WhistlerICSC TorontoICSC MontrealICSC Las Vegas

Have a strategy for being proactive

Urban Land Institute

Navigate the Process – We can all use a little help

Look to your Peers

When Opportunity Knocks – Spruce Grove is Ready

Gateway (Westwind) Market Analysis

Retail Gap Analysis

Industrial Profile Analysis

Economic Benefits & Impacts

Demographic Profile Study

Consumer Intercept Survey

City Due Diligence to Developer Acquisition to Leasing

Gateway Town CentreSpruce Grove, AB

Market Study & Positioning Strategy

Prepared for:The City of Spruce GroveOctober 2009 Final

Prepared by:MXD Development Strategists, Ltd.

Developers/Investors have many tentacles

MADISONDIAMOND

SHEP YELLOWHEAD

SPRUCE GROVEINDUSTRIAL PARK

CAMPSITEBUSINESS PARK

PHASE 1 PROPOSEDPHASE 2

PROPOSEDPHASE 3

PUBLIC WORKSQUARTER

FUTUREPOTENTIAL

FUTUREPOTENTIAL

It isn’t always about Retail

Principles apply to all land uses

Industrial Profile Example

Businesses love to cluster 107 acres37 businesses

680 Employees900 sf / employee

Look to your Peers

A collaborative effort to maximize value & return

Source: MXD Development Strategists Ltd.

A Proactive Process Leads to Success

Attended ICSC Whistler

Conducted a Market Analysis

Created a Conceptual Plan

Identified 5 or 6 target developers

Prepared a Request for Qualifications

Source: MXD Development Strategists Ltd.

Assess, Identify, Define and Validate the Value Proposition

A Proactive Process Leads to Success

Short-Listed Target Developers

Prepared a Request for Proposals

Evaluation Procedure

Negotiations

Entire process was new for the CityEducation & Learning CurveCouncil Transition - Elections

Connecting the dots beginning to end

ROYOP selected in partnership with Residential developer to prepare a Comprehensive plan that responds to the spirit and vision of the ASP.

Look to your Peers

RETAIL PROJECTSBecome a liaison between developers, tenants & brokers

Don’t just hunt for big game.

Know your sites, know your target markets

RETAIL INVENTORY BY CATEGORY & SECTOR

NORTH SOUTH CENTRAL EAST WESTTOTAL

(sf)

TOTAL(# of

Stores)

Grocery & Specialty Foods 173,794 124,250 63,100 9,550 181,500 552,194 40 Alcohol & Tobacco 26,500 25,750 4,100 9,750 12,000 78,100 28 Pharmacy 21,616 26,250 0 15,000 11,563 74,429 11 Personal Services 49,728 25,000 54,450 5,750 57,413 192,341 78 Clothing & Apparel 307,164 1,000 20,750 0 121,750 450,664 64 Footwear 15,224 0 1,750 0 5,000 21,974 15 Jewelry & Accessories 24,197 0 3,000 0 5,313 32,509 20 Health & Beauty 30,046 3,750 24,250 3,250 14,600 75,896 52 Home Electronics & Appliances 32,783 0 6,000 0 79,250 118,033 19 Home Furnishings & Accessories 139,693 0 41,750 0 107,500 288,943 33 Home Improvement & Gardening 158,000 0 1,000 0 206,800 365,800 21 Books & Multi-Media 13,703 0 4,250 0 3,625 21,578 12 Sporting Goods & Outdoor Recreation 85,475 1,500 0 0 42,950 129,925 16 Toys & Hobbies 18,638 0 2,000 0 6,750 27,388 9 Specialty Retail 88,185 6,750 52,800 1,000 119,000 267,735 85 Full Service F&B 56,235 5,000 46,000 3,000 60,159 170,394 38 Limited Service F&B 39,140 40,800 21,550 9,000 52,738 163,228 108 Entertainment & Leisure 20,675 11,000 34,000 5,000 135,000 205,675 16 Auto Parts & Accessories 80,565 0 0 0 49,200 129,765 12 VACANT 14,208 33,500 13,800 2,250 102,000 165,758 21

TOTAL 1,395,568 304,550 394,550 63,550 1,374,109 3,532,328 698

IDENTIFIED RETAIL NODE (sf)

Merchandise Category

Retail – How Much, Where and What Type…Do you know?

RETAIL INVENTORY SECTORS

Retail Supply

Total City – 3.5 million sf

NORTH• 1.4 million sf

SOUTH• 305,000 sf

EAST• 64,000 sf

WEST• 1.4 million sf

CENTRAL• 395,000 sf

Density of Respondents Map

Where are your customers really coming from?

Get to know your city’s customers like a retailer would its own.

FULL-SERVICE RESTAURANTS DESIRED

TOP 5 verbal responses

82 - Red Lobster78 - Olive Garden21 - Montana’s ***11 - Cactus Club7 – Outback & Old Spaghetti

TOP 5 verbal responses

41 – Toys R Us37 - IKEA

30 - Chapters/Indigo29 - American Eagle

24 - Sport Chek

What do your customers want?......ASK THEM!

Final Thoughts…..

Be Proactive

Be Prepared

Be a Resource

Do the Due

Have a Strategy

Know your Markets

Reach Out

Raise the Bar

Create Leverage

Liaise Liaise Liaise

I don’t always have the answer

But when I do, it’s because I talked to the City’s EDO

Kieron HuntDirector of Canadian Operationskieronh@ctagroup.com

Thank You (and enjoy the Masters Golf!)

c 1.604.314.3780o 1.604.888.6680

www.CushingTerrell.com

Credits: Cushing Terrell Architecture Inc.Kasian ArchitectureWAM / Beaverbrook DevelopmentsRoyopMXD Development Strategists IncCushman WakefieldCity of Grande PrairieCity of Spruce GroveCity of Lethbridge