Lake Grove District Market Analysis

Lake Grove District Market Analysis & Business Development Strategy October 2009

Lake Grove Market Analysis ♦ Retail Market Analysis i

Table of Contents Introduction..................................................................................................1

Section 1: Retail Market Analysis...............................................................3

Section 2: Opinion Research ...................................................................10

Section 3: Competitive Assessment........................................................12

Section 4: Retail Strategy ........................................................................15

Section 5: Business Development Next Steps........................................18

Appendices

A. Target Market Analysis Supporting Charts .......................................21

B. Retail Demand Analysis Supporting Charts .....................................27

C. Shopper Survey Results .......................................................................31

D. Business Owner Survey Results ...........................................................39

E. Retail Market Factsheet ......................................................................49

Acknowledgement The Lake Grove Retail Market Analysis was funded by the Clackamas County Main Street

Program. We wish to acknowledge the organizing and outreach efforts of Main Street

staff: Jamie Johnk, Clackamas County, together with the volunteer help of the Lake

Grove Business Association.

Lake Grove Market Analysis ♦ Retail Market Analysis 1

Introduction

At the heart of Lake Grove’s long-term success is its ability to offer residents, employees and employees a welcoming environment and a positive experience with shopping, dining and doing business. The

purpose of the market analysis is to develop a market-based Business Development Plan that directly addresses Lake Grove’s desire to have a

strong and vital business district. Clackamas County contracted with Marketek, Inc. to prepare this market

analysis in conjunction with the Lake Grove Main Street Program. It focuses on one of the four key elements of the Main Street Program – Economic Restructuring.

Program Approach The Lake Grove Main Street Program is organized according to the Main Street Approach, which focuses on four critical components for creating

success and vitality: Promotion/Identity-Building, Design/ Physical Improvements, Economic Development, and Organization.

1) Promotions/Identity Building: Identify, develop and promote the

image and promise of the business district by marketing its unique

characteristics to shoppers, investors, new businesses, and visitors. Create an effective promotion strategy to forge this positive image.

Create an atmosphere of fun and activity.

2) Design/Physical: Capitalize on and improve Lake Grove’s physical

assets. Create an inviting atmosphere to convey a visual message about the comfort and vibrancy of Lake Grove. Increase the utility

and user-friendly quality of Lake Grove.

3) Economic Development: Support existing and attract new businesses to respond to the current market. Balance business mix and provide amenities for all shoppers. Convert unused space into productive property. Sharpen the competitiveness of existing business.

4) Organization: Establish common goals for Lake Grove’s development,

and build and organize consensus and cooperation among Lake Grove stakeholders.


Project Purpose The purpose of this analysis is to:

♦ Provide a comprehensive assessment of potential market support for retail uses in the Lake Grove commercial district.

♦ Create an accurate picture of Lake Grove’s retail industry including a characterization of the existing supply of businesses; consumer

preferences, needs and buying patterns; and opportunities and challenges for growth and development in Lake Grove.

♦ Provide a factual basis for developing strategies to strengthen and diversify Lake Grove’s retail base and capture more consumer

spending locally. ♦ Recommend business development and marketing strategies to

strengthen the Lake Grove retail base.

Project Methodology As Lake Grove’s retail expansion efforts will be implemented over time,

the market analysis considers a ten-year time frame from 2009 to 2019, which is a realistic projection period for retail development. Research, both primary and secondary, includes:

♦ Statistical estimates of potential supportable retail space in the Lake

Grove market area ♦ Surveys of Lake Grove business owners ♦ Surveys of resident/employee shopping preferences

♦ Interviews with local businesses/retailers and other community leaders ♦ Seven site visits to Lake Grove

This research was completed in tandem with a retail analysis/strategy for the City of Lake Oswego overall, the Lake Oswego Market Analysis &

Business Development Plan. That effort included an inventory and mapping of ground floor businesses in all of Lake Oswego’s retail centers,

including Lake Grove and information in that document will supplement this effort.

This report is organized into five principal sections: 1) Retail Market Analysis 2) Opinion Research

3) Competitive Assessment 4) Retail Development Strategy

5) Business Development Action Plan


Retail Market Analysis

This section outlines Lake Grove’s key retail target markets and provides an estimate of existing and future support of retail space in the Lake Grove Market Area.

TARGET MARKET ANALYSIS

The Lake Grove Market Area has the potential to serve and attract sales from local residents, area employees, and visitors. Each customer group is summarized in the following.

Local Resident Market Based upon the patronage of existing businesses, Lake Grove’s location within the region, its competitive assets and the transportation system, the

Lake Grove Market Area is defined as shown on the map below. For comparative purposes, demographic data are also presented for the City of Lake Oswego, the Portland Metropolitan Statistical Area (MSA), and the

State of Oregon (Exhibit 1).

Lake Grove Market Area

♦ 2009 Lake Grove Market Area population was estimated at 72,916

persons and 29,826 households. ♦ Market Area has seen moderate population (0.72%) and household

(0.63%) growth since 2000.


♦ Market Area growth rates were just below those of the Portland MSA and the State.

♦ The City of Lake Oswego has grown at essentially the same rate, just under 1%, as the Lake Grove Market Area since 2000.

♦ By 2014, the Market Area is expected to reach 75,549 persons and 30,950 households, similar to growth during the 2000-2009 period.

♦ Household size averages 2.4 persons in the City of Lake Oswego and

Lake Grove Market Area, just below that of the Portland MSA (2.6) and the State (2.5).

Demographic City of Lake Grove Portland State of

Indicator Lake Oswego Market Area MSA Oregon

Population

2009 (estimate) 37,792 72,916 2,233,323 3,841,859

2014 (forecast) 38,902 75,549 2,396,625 4,064,906

Avg. Ann. % Change ('00 to '09) 0.79% 0.72% 1.76% 1.37%

Avg. Ann. % Change ('09 to '14) 0.59% 0.72% 1.46% 1.16%

Households

2009 (estimate) 15,589 29,826 857,304 1,495,911

2014 (forecast) 16,083 30,950 919,054 1,584,044

Avg. Ann. % Change ('00 to '09) 0.62% 0.63% 1.67% 1.35%

Avg. Ann. % Change ('09 to '14) 0.63% 0.75% 1.44% 1.18%

Average Household Size 2.41 2.43 2.56 2.51

Median Household Income $84,485 $75,700 $62,166 $53,483

Median Age (Years) 44.0 39.9 36.3 38.0

Race

Percent White Alone 89.6% 86.4% 81.5% 83.7%

Percent Other Race/2+ Races 10.4% 13.6% 18.5% 16.3%

Percent Hispanic 3.5% 8.8% 10.3% 11.2%

Homeownership 69.9% 65.0% 62.7% 64.0%

Educational Attainment

Associate Degree 5.8% 6.3% 8.0% 7.7%

Four Year Degree or More 64.1% 56.6% 31.5% 27.7%

Source: ESRI BIS

DEMOGRAPHIC SNAPSHOT

City of Lake Oswego, Lake Grove Market Area, Portland MSA and State of Oregon

2009

Exhibit 1


♦ Median household income in the Market Area is $75,700, approximately 22% higher than that of the MSA ($62,166).

♦ Median household income in the City of Lake Oswego is $84,485, considerably higher than the Market Area, the MSA, and the State.

♦ Median age in the Market Area (44 years) is on par with that of the State (38 years) but a bit above the MSA (36 years).

♦ The median age in the City of Lake Oswego is 44 years, higher than in

the Market Area, the MSA and the State. ♦ Race in the Market Area and City is less diverse than in the MSA and in

the State. ♦ Eighty-six percent (86%) of Market Area residents are white, 6%

Asians/Pacific Islanders, and 3% of residents are “some other race” or

two or more races. ♦ Nine percent (9%) of Market Area residents and 4% of the City

population are of Hispanic origin, compared to 10% in the MSA and

11% in the State.

Detailed charts characterizing the Market Area population including lifestyle information are provided in Appendix A.

Employee Market ♦ An estimated 2,579 businesses operate within a two-mile radius of

16008 Boones Ferry Road area (Exhibit 2). ♦ Businesses within the two-mile radius employ more than 29,000 persons.

♦ The largest share of employees work in the Services Sector (35%), followed by Retail Trade (19%), and Finance/Insurance/Real Estate

(18%).

Two-Mile Radius of 16008 Boones Ferry Road


Employees working in and near the Lake Grove Market area are an important captive market for retail, service, and entertainment business.

Research conducted by the Building Owners and Managers Association of America estimates that office workers spend 10% to 15% of their

expendable income in and near their places of work. Top spending categories include restaurants, entertainment, cards and gifts, personal care items, and books and magazines.

V Visitor Market The Clackamas County visitor market – which includes the City of Lake Oswego and the Lake Grove Market Area – has witnessed a strong rise in travel spending over the past 16 years. Lake Grove has the potential to

attract more of the Clackamas County visitor market given that there are several hotels at Kruse Way and I-5 as well as the newly added hotel at

the Bridgeport Shopping Center. ♦ Clackamas County visitor market grew from $177.4 million in 1991 to

$448.5 million in 2007.

Industry # % # %

Agriculture & Mining 42 1.6% 334 1.1%

Construction 175 6.8% 1,670 5.7%

Manufacturing 117 4.5% 2,709 9.2%

Transportation 46 1.8% 507 1.7%

Communication 16 0.6% 185 0.6%

Electric/Gas/Water/Sanitary Services 8 0.3% 130 0.4%

Wholesale Trade 193 7.5% 2,484 8.5%

Retail Trade 400 15.5% 5,606 19.1%

Finance/Insurance/Real Estate 509 19.7% 5,303 18.1%

Services 953 37.0% 10,121 34.5%

Government 13 0.5% 100 0.3%

Other 107 4.1% 152 0.5%

Total Employment 2,579 100.0% 29,301 100.0%

Source: ESRI BIS

Note: Distance is from 16008 Boones Ferry Road.

Businesses Employees

BUSINESSES AND EMPLOYMENT

2-Mile Radius

2009

Exhibit 2


♦ Top visitor spending categories in Clackamas County include retail sales ($116 million per year or 26%) and restaurants ($104 million per

year or 24%).

Extrapolating the growth rate, Marketek estimates that from 2009 to 2019 visitor spending in the County is expected to increase by $154.8 million to reach $606.1 million.

RETAIL DEMAND POTENTIAL

Marketek estimated potential demand for additional retail, restaurant and entertainment space in the Lake Grove Market Area on resident spending. Spending potential by merchandise type was converted to

square feet of store space based on sales per square foot standards derived from the Urban Land Institute’s Dollars and Cents of Shopping

Centers. For the resident market, demand is

derived from two sources. The first, “existing demand,” is demand for retail goods by current market area

households that is now being met outside the Market Area. Existing

demand is found by comparing the retail supply (i.e., actual retail sales) with retail demand (i.e., the expected amount spent by Market Area residents

based on consumer expenditure patterns). When demand outweighs supply, a leakage occurs, indicating that consumers are spending outside

of the Market Area for some retail goods or services. While consumers will always do a certain amount of shopping away from home, this comparison provides a reasonable indication of the availability of goods

in the local market.

The second source, “future demand,” is demand for retail goods based on spending patterns and projected household growth within the market

area over the next ten years. Although Marketek did not calculate demand from the visitor market, this target group also has the

potential to contribute to retail, restaurant, and service sales in the Lake Grove Market Area.

Visitors will become more significant over time especially if the area actively promotes its dining, retail, and hotel accommodations.


Potential demand for new retail space is divided among five merchandise categories: shoppers’ goods, restaurants, entertainment, convenience

goods, and personal services. The types of goods and services within these categories are provided in Appendix B.

The results of the demand analysis are depicted in Exhibit 3 below. Detailed analyses for each source of demand are provided in Appendix

B.

♦ Existing resident demand has the potential to support an additional

272,602 square feet of retail space in the Market Area.

♦ Future resident demand between 2009 and 2014 will support an additional 128,596 square feet.

♦ Future demand between 2014 and 2019 will support another 133,442 square feet for a total of 534,641 square feet of potential new retail space in the Market Area through 2019.

Merchandise/ 2009 2009-2014 2014-2019

Service Category Existing Unmet Market Area Market Area

Demand Demand Demand

(SF) (SF) (SF) (SF)

Shoppers Goods

Apparel --- 12,925 13,412 26,338

Home Furnishings --- 13,379 13,884 27,263

Home Improvement 42,041 15,162 15,733 72,936

General/Specialty Retail 162,278 14,653 15,205 192,136

Subtotal 204,320 56,119 58,234 318,673

Convenience Goods

Grocery 68,282 24,495 25,418 118,196

Health/Personal Care --- 4,444 4,611 9,055

Subtotal 68,282 28,939 30,030 127,251

Restaurants --- 22,881 23,743 46,624

Entertainment NA 9,173 9,518 18,691

Personal Services NA 11,484 11,917 23,401

Total 272,602 128,596 133,442 534,641

Source: ESRI; Urban Land Institute; Marketek, Inc.

Total Potential

New Retail

Space

RETAIL EXPENDITURE POTENTIAL


2009-2019

Exhibit 3


The absorption and distribution of retail demand into the marketplace is a highly

dynamic and fluid process, influenced by factors ranging from the timing and

availability of quality space and existing business anchors to district marketing and incentives. All ‘smart’ shopping districts or

centers strive to offer the marketplace a diversity of quality businesses, including specialty goods, which are so

prevalent in today’s consumer market. If the Lake Grove Market Area sought to capture 10% of existing Market

Area demand/leakage and 15% of the future demand potential between 2009 and 2019, it would translate to potential for 66,566 square feet of new retail space over the next ten years.

In an effort to put these demand estimates in context, Appendix B

provides the median sizes of several types of businesses that may be appropriate for Lake Grove.

Success in capitalizing on this commercial opportunity will be highly dependent on a number of factors, including the commitment to quality

physical development, property redevelopment and maintenance, aggressive marketing, and organized management of the commercial corridor.


Opinion Research

Shopper Survey Highlights ♦ One hundred and thirty-two (132) people participated in the survey.

Complete results are provided in Appendix C.

♦ Most respondents choose to do their non-grocery shopping at Washington Square (53.4%).

♦ Of the 95 respondents, 23 suggest that they would buy books locally if

there were more availability. Clothing is the next most popular choice

of 17 respondents.

♦ Kitchenware and linens are the most commonly requested household goods, requested by 30 and 20 respondents respectively.

♦ Respondents most commonly suggest that Lake Grove does not need any additional convenience merchandise or personal

services. The low response rate of this question compared to other questions

about needed goods and services seems to further the case that many Lake Grove residents are satisfied with the current level of service.

♦ Unlike respondents from other areas, Lake Grove respondents prefer to shop during normal work hours (48.2%).

♦ The majority of respondents cite the convenient location of businesses

as the primary advantage of shopping in Lake Grove (84.7%). This is followed by a strong desire to support local businesses (73.0%).

♦ The majority of respondents cite a poor selection of goods/services (58.5%) and high prices (41.5%) as the principle disadvantages of shopping in Lake Grove.

♦ Almost half of respondents are 55 years of age or older (44.1%).


Business Owner Survey Highlights ♦ The survey generated responses from 33 Lake Grove business owners.

Complete results are provided in Appendix D. ♦ More than any other category, 30.3 percent of respondents reported

that their business provides professional services. Restaurant and financial/insurance/real estate businesses are operated by 18.2

percent of respondents.

♦ Most respondents (68.8%) report operating their business in Lake Grove

for more than ten years.

♦ Most respondents note that their proximity to a variety of freeways is a strength of doing business in Lake Grove. Specific freeways mentioned include Highway 217 and Interstate 5.

♦ Most respondents reported that a lack of

accessibility is a disadvantage to doing

business in Lake Grove. This is demonstrated by a lack of bike lanes, bus

service, and inhospitable pedestrian conditions.

♦ Almost half of respondents report steady activity (43.3%). Thirty percent report moderate growth.

♦ An overwhelming majority of respondents (60.0%) do not plan on

making any changes to their business in the next one to two years.

♦ Most respondents cite public access as the most critical contributing

factor to the success of their business (60.0%).

♦ A strong majority of respondents reported that the current condition of

the economy is the largest obstacle faced today (75.0%). ♦ Most respondents report that marketing/advertising information is

important for their business to remain healthy and competitive (55.6%).


Competitive Assessment Successful business districts of any size have a healthy business climate

and a pro-active marketing program. Key amenities and characteristics to draw customers and/or business prospects to neighborhood or community shopping centers include those listed below:

Exhibit 4 BUSINESS DISTRICT ATTRACTORS

Access & Linkages • Good visibility

• Walkability-pedestrian friendly

• Transportation/transit access

• Good signage

• Parking availability

Uses & Activities • Overall active use—‘street life’

daytime and evening

• Destination attraction(s) in close

proximity

• Mix of stores/services—active

business clusters

• Frequency of events

• Limited vacancies

• Local entrepreneurship

• Quality goods and services

• Stable/improving real estate values

Factors Affecting Retail Location • Compatible land use patterns

• Property values (realistic)

• Rent levels (realistic)

• Organized promotions

• Good management

• Business compatibility

Image (clean, safe, green, attractive, places to sit, ambiance) • Welcoming physical

appearance—friendly, green,

attractive streetscape

• Safe

• Clean, well maintained

• Benches, garbage cans, bike racks

• Unique atmosphere

• Sense of pride and ownership

Source: Marketek, Inc.

These factors are particularly critical for older commercial districts seeking

to compete for retail dollars being spent with new shopping malls, lifestyle centers and big box-anchored centers. Although many of Lake Grove’s assets and challenges have been identified through other initiatives like

the Village Center Plan, they are listed below to portray a composite picture and to evaluate Lake Grove from two key perspectives:

1) What customers want from a shopping experience; and 2) Business climate and marketing factors that affect business decision-

makers seeking a profitable location.


Exhibit 5 LAKE GROVE COMPETITIVE ASSESSMENT

Geography/Description

The Lake Grove shopping and business district is nearly one mile in length with Boones

Ferry Road as the spine. This four-lane vehicle-oriented commercial corridor stretches

from Madrona Street on the southern end to Kruse Way to the north. Estimated

ground floor built space totals over 780,000 square feet with an 8% vacancy rate. The

business inventory revealed: 22 retailers, 28 dining/food-related businesses and 56

personal/professional/other service businesses.

Strengths/Assets

♦ Grocery and convenience goods/services from numerous banks to professional

offices are day-to-day anchors attracting neighborhood traffic

♦ Local marketplace is family-oriented with above average incomes but a low to

moderate rate of growth

♦ Post office and elementary school are strong civic anchors also bringing

consumers to the district

♦ Large concentration of restaurants offering a very wide range of cuisines and

prices

♦ New infill development/redevelopment is occurring particularly on the southern

end of the Boones Ferry corridor

♦ Within a 2-mile radius are over 2,500 businesses employing an estimated 29,000

persons offering a large built-in market 52 weeks a year. Kruse Way has nearly

900,000 square feet of office space, the largest concentration in Clackamas

County.

♦ Close proximity to several hundred hotel rooms at Kruse Way and I-5, offering a

year-round visitor market.

♦ Lake Grove has very good highway access with Boones Ferry serving as a

commuter route

♦ Active engaged business community organized through the Lake Grove Business

Association

♦ Lake Grove Village Center Plan provides a vision and guiding principles for the

commercial corridor’s long term development

♦ Attractive streetscape improvements throughout the district

Challenges

♦ Significant retail competition including Bridgeport, Costco and Washington

Square

♦ Highly auto-oriented suburban style development with street fronting parking lots,

dozens of driveways and freestanding commercial structures dominating the

corridor

♦ Limited directional signage and gateway and other urban design features make

it harder for shoppers to identify the Lake Grove shopping district


Strengths

Challenges

Opportunities


Retail Strategy

General retail strategies are provided for Lake Grove related to Market Position, Business Mix and Targets and Property Development.

Market Position Lake Grove must view itself as a ‘product’ and market itself to compete with other nearby shopping centers and business districts. It is beyond the scope of this project to suggest a brand identity, though marketing

themes and taglines suggested in the community input are highly valuable. Developing a common message and identity will provide

guidance for Lake Grove’s marketing, urban design elements, signage, advertising, marketing collateral, website, etc. In general, Lake Grove should promote itself as the true heart of the community—a unique and

special destination for residents, visitors and businesses. A sample market position statement and key marketing themes are summarized in Exhibit 6.

Exhibit 6 LAKE GROVE MARKET POSITION

Target Markets Primary: Lake Oswego residents and Kruse Way businesses/employees

Secondary: Pass through travelers using Boones Ferry/Kruse Way corridors and

overnight visitors on I-5.

Key demographics: middle-to-upper income women and families

Market Position Statement Lake Grove is a small town shopping district serving a significant daytime

marketplace with a wide range of convenience shopping choices and

commercial services.

Marketing Messages • Locally owned and operated businesses emphasizing excellent customer

service

• Catering to a variety of income levels

• Independent businesses with hometown hospitality

• Businesses supporting businesses to grow the local economy

Storyline Lake Grove is a dual-purpose shopping district. It is both a neighborhood shopping district offering day-to-day retail and service needs and the Kruse Way

community’s dining and business service center.


Business Mix and Targets A successful business district in virtually any size community will have a balance and mix of uses that includes retail shopping, professional,

cultural, financial and government services, entertainment, housing, and personal services. Lake Grove already exists as a mixed-use shopping center bringing residents, businesses and employees together for many

purposes. Much of the Lake Grove market area fills its daily shopping needs in the Lake Grove district. An important goal over the next five

years and longer will be to increase the number of retail businesses in the core area and maintain ground floor space in the contiguous commercial spaces for retail businesses, such as the Wizer’s Shopping Center.

The results of the statistical market analysis as well as the opinion research

indicate that Lake Grove has the opportunity to grow its retail base and fill niches and voids in the local marketplace. Identifying the most appropriate business mix for Lake Grove, as earlier noted, is a function of

demographics and lifestyle characteristics, spending potential, survey research, the existing business base, and retail trends.

Success will be achieved in Lake Grove with business owners dedicated to:

♦ Providing a good quality product at a fair price ♦ Providing exceptional customer service

♦ Responding to the changing needs of both trade area customers and visitors

♦ Aggressively marketing to these target customer groups ♦ Offering multiple, complementary product lines ♦ Filling specific, unique niches

♦ Having focus, imagination and a deep desire to meet the needs of the customer

The following list of business and merchandise opportunities (Exhibit 7) potentially can be supported based upon the market analysis. They

support the goal of concentrating on specialty goods and were identified as priorities by shoppers and business owners. Combinations of the goods and services as well as many others that have unique appeal to area

markets should be considered for business development efforts. Through the survey research, local residents and employees expressed interest in

both locally owned and select chain businesses.


Exhibit 7 TARGET LAKE GROVE BUSINESS OPPORTUNITIES

Merchandise

Bookstore

Gifts/cards

Bed & bath linens/

accessories

Kitchen accessories shop

Quality consignment –ladies

Children’s clothing

(moderately priced)

Home accessories

Women’s casual apparel

Restaurants/Food

Ethnic

Brewpub

Family dining-50s

Deli

Healthy foods

Entertainment

Community art/performance center

Personal Care/

Service

Gym

Computer repair/service

Appliance repair

Homeopathic/naturopathic care

Property Development An important step for recruiting business prospects and developers is to

provide an inventory of available real estate (properties and lots) and, better yet, to be in the position to bring key properties to the table. The

goal of Property Development strategies is twofold--to create awareness of available properties and to stimulate interest and action toward property improvements in Lake Grove to better attract quality tenants.

Lake Grove also has a number of catalytic infill sites that are prime redevelopment opportunities. Next steps will be delineated in the action

plan section to follow.


Business Development Next Steps

The Lake Grove business district will benefit from the City’s commitment to economic development and vitality for the community overall. The just completed Lake Oswego Market Analysis/Business Development Plan will

guide overall retail business retention, enhancement and attraction strategies for Lake Grove as will the new Lake Oswego Economic

Development Manager who works community-wide. However, selected “next steps” for promoting and capitalizing on market

opportunities are customized for Lake Grove in the chart that follows. As it relates to the Lake Grove Main Street Program, these steps provide guidance for the Economic Restructuring and Promotion components.

Exhibit 8 NEXT STEPS

Business Retention and Expansion

1. Promote the findings of Lake Grove’s Retail Market Analysis to existing

businesses through business networking meetings. Encourage existing

businesses to expand and diversify their merchandise mix based upon the

opportunities identified.

2. Through a committee of LGBA, institute a quarterly Business Recognition or

Kudos Program to celebrate Lake Grove businesses for their exceptional

service, business improvements, community service, new initiatives and other

positive endeavors. This PR tactic will reinforce Lake Grove’s identity as a

distinct business district.

3. Respond to the top needs identified by businesses in the business owner

survey—marketing—with an ongoing series of workshops and one-on-one

technical assistance visits ranging from retail promotions and target marketing

to merchandising and window displays.

4. Organize an inventory and evaluate all available vacant buildings and infill

properties to identify those that are ‘most ready’ for retail/service tenants and

most developable in the next five years. Work to match business opportunities

to specific properties to cluster retail businesses.

5. Organize/work with Economic Development Manager on a business outreach

program to be in regular contact with Lake Grove businesses to identify and

respond to critical issues and opportunities in a timely manner. Tap the business

development services of the Clackamas Community College (CCC) Small

Business Development Center.


Exhibit 8 (continued) NEXT STEPS

Customer Attraction & Expansion (Promotion)

1. Create a one-page promotion calendar that includes community events

(such as Lake Grove’s Got Talent), business promotions (such as the Dine

Around Lake Grove event), targeted campaigns to Kruse Way businesses and

Lake Grove neighbors and related activities. Add one or two activities/events

in the year ahead. Determine who will lead and resources needed.

2. Prepare a rack card of Lake Grove restaurants/dining establishments that can

be shared with Kruse Way office tenants, placed in hotel rooms and other

appropriate locations. Be sure to include a simple map of where Lake Grove

is.

3. Ensure that the LGBA website can be easily located and that a Lake Grove

business listing is readily displayed. The website also provides the opportunity

for Lake Grove to communicate its identity and offerings to existing and

prospective businesses, as well as residents and visitors.

4. Develop a rack card of Lake Grove Business Services and Professionals and

distribute to all businesses in a two-mile radius.

5. Advertise and feature Lake Grove businesses in the LO Review on a regular

basis. A one-page ad encouraging the neighborhood to Shop Local

particularly during the holiday season would be a sound investment.

6. Identify ways to partner with the Lake Grove Elementary School on key

events/activities to gain Lake Grove businesses positive PR and more traffic.

Ads, coupon books, sponsorships can all be creatively employed.

Business Attraction

1. Share the Retail Marketplace factsheet (Appendix E) with brokers, local

developers, the Chamber, CCC Small Business Development Center and Lake

Grove business leaders to demonstrate the retail opportunity and vision for

bringing more retailers to Lake Grove.

2. Develop target recruitment campaigns for two key business opportunities, to

include business and local networking, mailings, one-on-one contact, third-

party outreach, targeted collateral material and related activities.

3. Create a list of and maintain referral networks with leading realtors/brokers,

developers and business leaders and educate them regarding the types of

businesses most appropriate for Lake Grove. Develop a schedule of

communications the group informed about Lake Grove initiatives and

opportunities. This is truly important to reinforcing Lake Grove’s unique identity

and offerings.


Exhibit 8 (continued) NEXT STEPS

Business Attraction (continued)

4. Create a list of and maintain referral networks with leading realtors/brokers,

developers and business leaders and educate them regarding the types of

businesses most appropriate for Lake Grove. Develop a schedule of

communications the group informed about Lake Grove initiatives and

opportunities. This is truly important to reinforcing Lake Grove’s unique identity

and offerings.

5. Enable developers and prospective businesses to access downloadable

marketplace data, an overview of the Lake Grove Village Plan, current and

future planning projects and other pertinent recruitment material online.

NOTE: Determine with the City of Lake Oswego Economic Development

Manager what information will be on the City’s website, on LGBA’s website

and/or in both places.

6. Create a simple database of key economic indicators to track and promote

Lake Grove’s vitality and overall progress. Data should include: vacancy rate,

jobs gained, private/public investment, businesses recruited/retained, special

event/promotion traffic counts and overall retail sales trends. This information

can be gathered with the guidance of the Economic Development Manager

and used as part of an annual economic ‘report card’ of conditions.

Successful implementation of Lake Grove’s business development program requires strong coordination, consistent communication and commitment to a vision for a more cohesive business district. The steps

outlined above assume that a collaborative team will work together on the commercial base, including the Lake Grove Main Street Program,

LGBA, the City of Lake Oswego, the Lake Oswego Chamber of Commerce, local neighborhood associations and other organizational leaders. To ensure forward movement and progress toward the overall

goal of a healthy business district, begin with three-to-five new initiatives from the list and develop 30-60-90 project work plans. These work plans

will be important for engaging new volunteers and community leaders and for measuring outcomes over time.


Appendix A. Demographic Profile

2000 2009 Number Percent 2014 Number Percent

(Estimate) (Forecast)

City of Lake Oswego

Population 35,278 37,792 279 0.79% 38,902 222 0.59%

Households 14,769 15,589 91 0.62% 16,083 99 0.63%

Avg. Household Size 2.38 2.41 0.003 2.41 0.000


Population 68,475 72,916 493 0.72% 75,549 527 0.72%

Households 28,225 29,826 178 0.63% 30,950 225 0.75%


Portland MSA

Population 1,927,881 2,233,323 33,938 1.76% 2,396,625 32,660 1.46%

Households 745,531 857,304 12,419 1.67% 919,054 12,350 1.44%


State of Oregon

Population 3,421,399 3,841,859 46,718 1.37% 4,064,906 44,609 1.16%

Households 1,333,723 1,495,911 18,021 1.35% 1,584,044 17,627 1.18%


Source: ESRI BIS


2000-2014

POPULATION & HOUSEHOLD GROWTH

Geographic Area

Avg. Ann. Change Avg. Ann. Change

2000-2009 2009-2014

Average Annual Population Growth Rates, 2000-2014

0.0%

0.5%

1.0%

1.5%

2.0%

City of Lake Oswego Lake Grove Market

Area

Portland MSA State of Oregon

2000-2009 Avg. Ann. Change 2009-2014 Avg. Ann. Change


Income City of Lake Grove Portland State of

Lake Oswego Market Area MSA Oregon

Less than $15,000 4.4% 4.8% 8.0% 10.6%

$15,000 - $24,999 4.2% 5.0% 7.4% 9.7%

$25,000 - $34,999 5.5% 6.0% 8.5% 10.3%

$35,000 - $49,999 11.6% 12.6% 14.5% 15.6%

$50,000 - $74,999 19.4% 21.1% 23.6% 22.7%

$75,000 - $99,999 11.2% 12.9% 15.5% 15.0%

$100,000 - $149,999 20.9% 18.9% 14.7% 10.2%

$150,000 - $199,999 8.9% 8.1% 4.1% 3.1%

$200,000 or More 13.9% 10.6% 3.7% 2.8%

Total 15,589 29,826 857,304 1,495,911

Median Household Income $84,485 $75,700 $62,166 $53,483

Source: ESRI BIS

HOUSEHOLD INCOME


2009

0%

5%

10%

15%

20%

25%

Less than

$15,000

$15,000 -

$24,999

$25,000 -

$34,999

$35,000 -

$49,999

$50,000 -

$74,999

$75,000 -

$99,999

$100,000 -

$149,999

$150,000 -

$199,999

$200,000 or

More

City of Lake Oswego Lake Grove Market Area Portland MSA State of Oregon

Household Income Distribution, 2009


Age Category City of Lake Grove Portland State of


Under 5 4.7% 5.6% 7.0% 6.5%

5-14 11.9% 12.1% 13.2% 12.5%

15-19 6.6% 6.5% 6.7% 6.8%

20-24 5.4% 6.3% 6.7% 6.8%

25-34 10.2% 13.1% 14.6% 13.5%

35-44 12.6% 13.5% 14.3% 13.2%

45-54 18.8% 17.5% 14.9% 14.8%

55-64 16.5% 14.5% 11.7% 12.7%

65-74 7.3% 6.1% 5.7% 6.8%

75-84 4.1% 3.3% 3.5% 4.3%

85+ 1.9% 1.5% 1.7% 2.1%

Total 37,792 72,916 2,233,323 3,841,859

Median Age 44.0 39.9 36.3 38.0

Source: ESRI BIS


2009

POPULATION BY AGE

Age Distribution of the Population, 2009

0%

5%

10%

15%

20%

Under 5 5-14 15-19 20-24 25-34 35-44 45-54 55-64 65-74 75-84 85+



Race/Ethnicity City of Lake Grove Portland State of


White Alone 89.6% 86.4% 81.5% 83.7%

Black Alone 0.7% 1.0% 2.8% 1.7%

American Indian Alone 0.3% 0.5% 0.9% 1.3%

Asian/Pacific Islander 5.7% 5.6% 6.0% 4.1%

Some Other Race Alone 1.0% 3.4% 5.1% 5.8%

Two or More Races 2.7% 3.1% 3.7% 3.4%

Hispanic Origin (any race) 3.5% 8.8% 10.3% 11.2%

Total 37,792 72,916 2,233,323 3,841,859

Source: ESRI BIS


2009

RACIAL & ETHNIC COMPOSITION

0%

20%

40%

60%

80%

100%

White Alone Black Alone American Indian

Alone

Asian/Pacific

Islander

Some Other

Race Alone

Two or More

Races

Hispanic Origin

(any race)


Racial & Ethnic Composition, 2009


Community Tapestry Segments Recognizing that people who share the same demographic characteristics may have widely divergent interests and shopping preferences, Community Tapestry

data (developed by ESRI Business Information Solutions) categorizes neighborhoods throughout the nation into 65 consumer groups or market segments. Neighborhoods are geographically defined by census blocks, which

are analyzed and sorted by a variety of demographic and socioeconomic characteristics as well as other determinants of consumer behavior. Market area

households have been grouped into Tapestry market segments. The market segments within the Lake Grove Market Area are identified and summarized in the chart on the following page.


% of Hhold Median Median Consumer Preferences &

Hholds Type Age Income Purchases

1 In Style 20.8%

Married

couples

without

children

40 $72,112

Well-educated professional couples who may live in the suburbs

but enjoy the amenities of the city. They travel frequently for

business and pleasure, own mutual funds and contribute to 401-K

accounts. Enjoy dining out and shopping at stores such as Anne

Taylor and Nordstrom.

2Enterprising

Professionals15.1%

Single

persons

or

married

couples

34 $69,960

These young, educated, working professionals change cities

frequently, moving where jobs are located. They prefer to rent,

rely on cell phones, PCs and the Internet and love to travel.

3Suburban

Splendor11.0%

Married

couples41 $129,931

Families in growing neighborhoods who own large, luxurious

homes and hire contractors and maintenance workers. They

devote free time to travel, fitness and trips to museums or the

theater.

4 Exurbanites 9.7%Married

couples45 $88,195

Empty nester couples who spend time working in their garden or

decorating their homes. Enjoy domestic wine, attending the

theater and outdoor activities such as boating and hiking.

5 Urban Chic 8.7%Married

couples41 $89,521

Professionals with exclusive, sohpisticated lifestlyes, members of

these households travel extensively and attend museums, dance

performances and concerts. They use the Internet to arrange

travel, follow investments and make purchases.

6 Connoisseurs 6.8%Married

couples47 $123,255

Affluent, older couples approaching retirement. They live in older,

affluent neighborhoods and spend heavily on travel and

vacations.

7Young and

Restless6.0%

Singles/

Shared

hholds

29 $43,645

These households are young and on the go. Their purchases

center on themselves and include sports gear, designer clothing

and computers and software. Favorite stores include Banana

Republic and Express.

8Aspiring Young

Families5.5%

Family

Mix31 $50,392

Live in start up homes or town homes, nearly half are renters, spend

their discretionary income on their children and homes. Enjoy

eating out, movies, and playing sports.

9 Metropolitans 5.0%

Married

couples/

Singles

38 $61,973

Singles and childless couples with a busy, urban lifestyle. Do yoga,

listen to jazz and visit museums. Travel frequently for business and

pleasure.

10 Top Rung 4.3%Married

couples42 $185,415

Mature, highly-educated, wealthy families. They indulge

themselves with frequent travel and shop at stores such as

Nordstrom, Lord & Taylor and Banana Republic. Laptops and cell

phones are necessities.

Source: ESRI BIS

Total Households 92.9%

TOP TEN TAPESTRY MARKET SEGMENTS


Market Segment

2009


Appendix B. Retail Demands

Merchandise/Service Types of Goods/Services

Category

Apparel Women's Apparel, Men's Apparel, Children's, Footwear,

Watches & Jewelry

Home Furnishings Furniture, Floor Coverings, Major and Small Appliances,

Household Textiles, Floor Coverings, PC Software and

Hardware, Housewares, Dinnerware, Telephones

Home Improvement Maintenance and Remodeling Materials, Lawn & Garden

Misc. Specialty Retail Pet Care, Books & Periodicals, Sporting Equipment, Toys &

Hobbies, Video Cassettes & Games, TV/VCR/Cameras,

Audio Equipment, Luggage, Eyeglasses

Groceries Food at Home, Nonalcoholic Beverages at Home,

Alcoholic Beverages, Smoking Products

Restaurants Food Away From Home, Alcoholic Beverages

Entertainment Admission to Movie/Theater/Opera/Ballet, Recreational

Lessons, Participation in Clubs

Personal Services Shoe Repair, Video Rental, Laundry & Dry Cleaning,

Alterations, Clothing Rental & Storage, Watch & Jewelry

Repair, Photo Processing & Supplies, Child Care

Source: ESRI BIS

SUMMARY OF MERCHANDISE AND SERVICE CATEGORIES


Demand/ Target

Spending Supply/ Leakage Sales Potential

Potential Retail Sales (or Surplus) ($/SF)* Space

Shoppers Goods

Apparel $34,849,896 $51,560,357 ($16,710,461) --- ---

Home Furnishings $33,916,452 $67,148,952 ($33,232,500) --- ---

Electronics & Appliances $32,891,267 $124,616,635 ($91,725,368) --- ---

Home Improvement & Gardening $44,627,006 $38,741,211 $5,885,795 $140 42,041

Sporting Goods, Hobbies, Books & Music $14,383,476 $31,456,859 ($17,073,383) --- ---

General Merchandise $193,301,880 $158,249,738 $35,052,142 $216 162,278

Miscellaneous Specialty Retail

(florist, office supplies, gift stores, etc.)

Convenience Goods

Grocery $186,721,693 $160,091,594 $26,630,099 $390 68,282

Health & Personal Care $27,462,945 $70,588,330 ($43,125,385) --- ---

Restaurants $166,991,096 $167,456,775 ($465,679) --- ---

Total Leakage

Estimated Supportable Square Footage 272,602

* Target sales are based on the Urban Land Institute, "Dollars and Cents of Shopping Centers."

Source: ESRI BIS; Marketek, Inc.

--- ---

EXISTING RETAIL BALANCE


$67,568,036

2009

Merchandise Category

$17,614,506 $26,745,427 ($9,130,921)


Per Target

Merchandise or Household Sales Sales Space Sales Space Sales Space

Service Category Expenditure ($/SF)* (in mil $) (SF) (in mil $) (SF) (in mil $) (SF)

Apparel $2,403 $209 $71.7 342,980 $74.4 355,906 $77.2 369,318

Home Furnishings $2,369 $199 $70.7 355,031 $73.3 368,411 $76.1 382,294

Home Improvement $1,888 $140 $56.3 402,323 $58.4 417,485 $60.7 433,218

Misc. Specialty Retail $2,816 $216 $84.0 388,817 $87.1 403,470 $90.4 418,675

Shoppers Goods $282.6 1,489,152 $293.3 1,545,271 $304.3 1,603,505

Grocery $8,499 $390 $253.5 649,999 $263.1 674,495 $273.0 699,913

Health/Personal Care $1,443 $365 $43.0 117,921 $44.7 122,365 $46.3 126,977

Convenience Goods $296.5 767,921 $307.7 796,860 $319.3 826,890

Restaurants $5,354 $263 $159.7 607,162 $165.7 630,043 $171.9 653,786

Entertainment $734 $90 $21.9 243,400 $22.7 252,573 $23.6 262,091

Personal Services $1,543 $151 $46.0 304,742 $47.8 316,226 $49.5 328,143

Total $806.8 3,412,377 $837.2 3,540,973 $868.7 3,674,416

Five Year Net Gain $30.4 128,596 $31.5 133,442

* Target sales are based on the Urban Land Institute, "Dollars and Cents of Shopping Centers."

Sources: ESRI BIS; Urban Land Institute; Marketek, Inc.

RETAIL EXPENDITURE POTENTIAL

2009-2019


2019

Retail Potential Retail Potential

2009 2014

Retail Potential


Merchandise or Service Category/Business Median National Local Chain Independent

Specialty Retail

Appliances 5,956 6,292 5,911 ~

Art Gallery 1,802 ~ 1,802 1,907

Beauty Supplies 1,807 1,634 2,450 1,829

Bike Shop 3,440 ~ ~ 2,596

Bookstore 10,093 23,000 9,990 2,740

Cameras 2,000 2,000 ~ ~

Children's Wear 3,913 4,879 3,054 2,105

Family Shoe Store 4,000 4,113 5,100 2,460

Family Wear 8,000 8,500 3,474 5,132

Gift/Cards 4,200 4,900 3,780 1,653

Hardware 13,200 13,900 ~ ~

Home Accessories 7,595 10,215 5,365 2,462

Jewelry 1,500 1,610 1,968 1,200

Luggage 2,500 2,499 ~ ~

Men's Clothing Store 3,500 4,319 3,065 2,750

Pet Supplies 7,995 17,600 3,201 3,200

Record/Tapes 4,464 6,178 ~ 2,017

Sporting Goods 8,465 22,000 4,980 2,995

Toys 7,855 12,000 ~ 3,344

Women's Ready to Wear 4,400 4,503 3,960 2,145

Convenience

Drugstore/Pharmacy 10,920 10,860 16,668 4,977

Supermarket 50,420 49,071 51,495 23,300

Bakery 1,990 4,000 ~ 1,700

Gourmet Grocery 18,000 ~ ~ ~

Wine/Liquor 3,440 ~ 6,237 2,920

Personal Services

Day Spa 2,875 ~ 2,563 3,060

Women's Hair Salon 1,400 1,450 1,250 1,361

Nail Salon 1,200 ~ 1,200 1,200

Health Club 10,249 9,548 5,508 10,249

Mail/Packaging/Photocopying 1,278 1,240 ~ 1,236

Tailor/Alteration 950 ~ 900 1,035

Video Rental 6,000 6,333 4,240 4,733

Drycleaners 1,800 ~ 1,800 1,649

Day Care 4,000 ~ ~ 3,901

Laundry 2,114 ~ 2,150 1,955

Restaurants

Restaurant with Liquor 5,204 6,669 5,600 3,362

Restaurant without Liquor 3,581 6,500 3,025 2,625

Bar/Cocktail Lounge 3,821 ~ ~ 3,821

Ice Cream Parlor 1,137 1,144 1,137 1,116

Coffee/Tea 1,578 1,650 1,624 1,400

Entertainment - Cinema 35,022 37,161 35,022 21,250

Source: Urban Land Institute, "Dollars and Cents of Shopping Centers"

TYPICAL SIZE OF SELECTED BUSINESSES


Appendix C. Shopper Survey Results

Section 1: Shopping & Services in Lake Grove

1. Where do you do most of your non-grocery shopping (e.g., apparel, home furnishings, sporting goods, etc.)? (131 respondents)

� Most respondents choose to do their non-grocery shopping at Washington Square

(53.4%).

� Bridgeport Village is the next most popular shopping destination (29.8%).

� Of the 33 respondents who chose ‘other,’ popular answers include Tigard, Tualatin

and Clackamas Town Center.


2. What types of merchandise are you currently buying on the Internet that you would purchase locally if it were available? (95 respondents)

� Of the 95 respondents, 23 suggest that they would buy books locally if there were

more availability. Clothing is the next most popular choice of 17 respondents.

� Nineteen of the 95 respondents state that they do not shop on the internet.

3. What kinds of HOUSEHOLD GOODS do you think we are missing or need more of in the

Lake Grove Shopping District, if any? (ex: Furniture, appliances, linens, kitchenware, garden supplies, etc.) (93 respondents)

� Kitchenware and linens are the most commonly requested household goods,

requested by 30 and 20 respondents respectively.

� Hardware is also commonly requested among 17 respondents. Thirteen respondents

suggest that Lake Grove could use more gardening supplies.

4. What kinds of APPAREL do you think we are missing or need more of in the Lake Grove Shopping District, if any? (ex: women's men's casual, business, children's teens, etc.) (95 respondents)

� Thirty-three respondents believe that Lake Grove could use additional women’s

clothing stores. Twenty-one respondents also suggest more men’s clothing stores are

necessary.

� Of the 95 respondents, 23 specifically mention casual style clothes specifically.

5. What types of SPECIALTY MERCHANDISE do you think we are missing or need more of in the Lake Grove Shopping District? (ex: sporting goods, music, camera, electronics, books, etc.) (99 respondents)

� Reflecting the same answers as in question two, 44 respondents suggest that Lake

Grove could benefit from additional book stores.

� Twenty-two respondents request a sporting goods store. Three respondents mention

that the previous sporting goods store in Lake Grove (Joe’s) recently closed.

6. What kinds of CONVENIENCE MERCHANDISE and PERSONAL SERVICES do you think we are missing or need more of in the Lake Grove Shopping District, if any? (ex: grocery, dry cleaning, DVD rental, hair salons, etc.) (69 respondents)

� Respondents most commonly suggest that Lake Grove does not need any additional

convenience merchandise or personal services. The low response rate of this

question compared to other questions about needed goods and services seems to

further the case that many Lake Grove residents are satisfied with the current level of

service.


7. What kinds of GENERAL SERVICES do you think we are missing or need more of in the Lake Grove Shopping District, if any? (ex: computer repair, day care, copy center, bank, legal, medical, appliance repair, etc.) (64 respondents)

� Like the previous question, many respondents suggest that they are happy with the

current level of general service.

� Those who did make additional suggestions indicated that computer and appliance

repair, as well as a copy center would be welcome in Lake Grove.

8. What HEALTH SERVICES do you think we are missing or need more of in the Lake Grove Shopping District, if any? (ex: dental, chiropractic, naturopathic, vision care, pediatric care, general health care, etc.) (66 respondents)

� Thirty-four respondents state that the current selection of health services in Lake

Grove is adequate.

� Eight respondents suggest that Lake Grove could use additional general health care

facilities and six suggest new urgent care centers.

9. In your opinion, what types of RESTAURANTS AND CUISINES do you think we are

missing or need more of in the Lake Grove Shopping District, if any? (ex: bakery, family, coffee, ethnic, brewpub, etc.) (98 respondents)

� Respondents suggested a variety of different restaurant types, the most common of

which was a brewpub (32 respondents).

� Nineteen respondents suggested both ethnic and/or traditional bakeries.

� Twelve respondents specifically mentioned Indian food as a desired ethnic

restaurant, more than any other specific style.

10. What kinds of LEISURE/ENTERTAINMENT activities do you think we are missing or need more of in the Lake Grove Shopping District, if any? (ex: gym, art galleries, music events, recreation, etc.) (79 responses)

� More than any other leisure activity, twenty respondents desire music venues in Lake

Grove.

� Thirteen respondents believe that a gym would be welcome in Lake Grove. Fifteen

respondents suggest additional art galleries are necessary.

11. Some of the above merchandise and services may be available locally. Please explain why you may not be buying these products or services in the Lake Grove Shopping District if you are aware of them. (78 respondents)

� “In several cases, it's all about driving and parking. If the area was more pedestrian

and bike friendly, it would help. We do grocery shopping occasionally, my barber is

there, and we frequent a few restaurants from time to time.”


� “I eat at many places and do my grocery shopping in Lake Grove. Camera,

Gardening supplies, Furniture, and Gyms are too expensive.”

� “I like to shop local but sometimes it's more expensive. Things like furniture and

clothing are not reasonably priced. In this economy we need stores that are offering

competitive prices.”

� “Pricing. We patron local business when possible, and this area is specifically a

destination-bound stop. I wouldn't consider getting out of my car and walking

around.”

� “Cost could keep us driving further afield, but buying local is important. Better ads for

LG shopping needed.”

� “There are a lot of services already offered in Lake Grove but the quality is all over

the map. Not enough clustering of businesses so if you prefer to walk and not drive,

you can only get to maybe one or two places you need to go. This area is NOT

particularly pedestrian friendly. Without a "center" opportunities for music events etc.

are limited. If we're keeping the WEB, let's use it better. That's a huge lawn that could

be used for outdoor gatherings.”

Section 2: Shopping & Business Preferences

12. What are the best times for you to shop? (Please pick the top 3) (112 respondents)

� Unlike respondents from other areas, Lake Grove respondents prefer to shop during

normal work hours (48.2%).

� Next to weekdays between 8:30 AM and 5:00 PM, respondents prefer to shop on

Saturdays.

� Respondents least prefer shopping on Sunday mornings.


13. Currently, what are the major ADVANTAGES of shopping or doing personal errands in the Lake Grove Shopping District? (Please check the top 3) (111 respondents)

� The majority of respondents cite the convenient location of businesses as the primary

advantage of shopping in Lake Grove (84.7%). This is followed by a strong desire to

support local businesses (73.0%).

� Proximity to public transportation (0.9%), selection (4.5%), and prices (10.8%) are the

least cited advantages of shopping in Lake Grove.

14. Currently, what are the major DISADVANTAGES of shopping or doing personal errands

in the Lake Grove Shopping District? (Please check the top 3) (106 respondents) � Mirroring the previous question, the majority of respondents cite a poor selection of

goods/services (58.5%) and high prices (41.5%) as the principle disadvantages of

shopping in Lake Grove.

15. What can Lake Gr


ove Shopping District merchants do to improve their stores? (Please check the top 3.) (105 respondents)

� More than half of respondents suggest that Lake Grove merchants can improve their

stores by first improving their selection of goods and services (52.8%).

� An equal amount of respondents also believe that Lake Grove stores can be

improved through lowering prices and improving appearance (43.4%).

16. What identity or image would you like to see Lake Grove create for itself as a unique

business and shopping district? (77 respondents)

� “More pedestrian friendly, where one could park and walk around.”

� “A local "main street" shopping experience. Make the area more pedestrian friendly.

Limit left turns onto Boones Ferry.”

� “There is nothing keeping me chained to Lake Grove. I have stayed here for 30 years

because I love it. My single greatest concern is that your organization will do

something to transform it into a cookie-cutter place that looks like everywhere else.

Why do we need all those goods and services in Lake Grove? Why don't we just mow

down a big section of the village and build a Target there? This survey, like so many

others put out by the City of L.O., presupposes that everybody wants to make a big

change, and it is an incorrect supposition. I wish you people would stop pandering to

developers and to business owners like Mike Buck and Vic the auto guy who are just

looking for their big chance to cash in.”

� “Not another Bridgeport Village! Foster local business! Identify with customer base -

neighbors and other local merchants - and create community. People shop where

they feel most comfortable. Work to make the shopping district feel like home.”


Section 3: General Information

17. Please check your age. (111 respondents) � Almost half of respondents

are 55 years of age or older

(44.1%).

� Respondents under the

age of 24 make up only 1.8

percent of the total.

18. Please tell us your home zip code. (110 respondents)

� Of the 110 respondents, 71 live in the 97035 ZIP code. Thirty-two respondents live in

the 97034 ZIP code.

19. If you work outside the home, please tell us the ZIP code of your work address. (62 respondents)

� Of the 62 respondents, 28 work in the 97035 ZIP code.

� Eight respondents work in the 97221, 97222, 97223, and 97224 ZIP code.

20. Please share any other comments below. (70 respondents)

� “Make Boones Ferry like NW 23rd. Cool shops and eateries. Lots of foot traffic. Hip,

happening place people would actually want to go.”

� “Wizer's Groceries is the epitome of overall service, quality and customer friendliness.

Their sales offset higher prices at other stores. If you use their sales you will balance

shopping prices at the big box grocery stores. Wizers should be a key cornerstone of

Lake Grove.”

� “I think we have the things needed most in convenient locations like; Grocery Stores,

Restaurants, Post Office, DMV, AAA, Dentists, Chiropractors. It's only the extras that

aren't bought on a regular basis like; Camping gear, Craft supplies, Furniture,

Electronics.”


� “Very concerned about the traffic & parking impacts on the transitional streets

leading to the adjacent neighborhood associations. Understand that the Village

Center Plan recommendations and code amendment overlays do not ‘trump’ the

local neighborhood association plans. Recognize that the adjacent neighborhood

associations are part of the primary stakeholders as the LGVC Plan begins to unfold

and that the NA's need to be kept informed and involved all during this period.”

� “Boones Ferry is an unappealing, very ordinary suburban commercial strip. There is an

unused trail paralleling Boones Ferry; it would be nice to walk it rather than drive (who

would want to walk) on Boones Ferry. I do like the landscaping along the street in

front of Lake Grove School.”

� “I love the Lake Grove swim park! This is a treasure and we should do everything we

can to preserve it.”

� “Please also be very cautious about changing traffic flow. I have serious concerns

about not being able to turn left across on-coming traffic. Having to drive an extra

half mile and turn could be enough to keep me away.”


Appendix D. Business Owner Survey Results Section 1: Business Information & Operations

1. What is the nature of your business? (33 respondents) � More than any other category, 30.3 percent of respondents reported that their

business provides professional services. Restaurant and financial/insurance/real

estate businesses are operated by 18.2 percent of respondents.

� “Other” businesses account for 24.2 percent of respondents and include heath care,

auto repair, and education facilities.

2. How long have you been operating this business in Lake Grove? (32 respondents)

� Most respondents (68.8%) report operating their business in Lake Grove for more than

ten years.

� No respondents reported opening a business in Lake Grove within the past year. Just

over thirty percent of respondents have operated their business for less than ten

years.


3. Name up to 3 advantages or strengths you associate with doing business in the Lake Grove shopping district. (26 respondents)

� Most respondents note that their proximity to a variety of freeways is a strength of

doing business in Lake Grove. Specific freeways mentioned include Highway 217

and Interstate 5.

� Other respondents note that Lake Grove’s attractive setting, small town feel, and

sense of community are all business strengths.

� Three respondents specifically mention Kruse Way as helpful to their business.

4. Please share any disadvantages (if any) to doing business in Lake Grove. (24 respondents)

� Most respondents reported that a lack of accessibility is a disadvantage to doing

business in Lake Grove. This is demonstrated by a lack of bike lanes, bus service, and

inhospitable pedestrian conditions.

� “No bike lanes; lots of car traffic with no turn lanes and then bunches up.”

� “Boones Ferry Road traffic is difficult and dangerous. Downtown Lake Oswego is

treated more favorably by the city council. Chamber of Commerce favors

downtown as well.”

� “Crossing the road – not enough U-turns or turn bays.”

� “Not as walkable as I would like.”

� “Getting across Boones Ferry Road! Although adequate food and grocery and auto

resources exist, there are insufficient retail stores to serve all needs.”

5. How would you characterize your current business activity level (i.e., last 12 months of operation)? (30 respondents)

� Almost half of respondents report steady activity (43.3%). Thirty percent report

moderate growth.

� Just over a quarter of respondents report declining activity (26.7%). No respondents

report rapid expansion.


6. Which description below best characterizes your plans to expand or reduce your operation in the next one to two years? (30 respondents)

� An overwhelming majority of respondents (60.0%) do not plan on making any

changes to their business in the next one to two years.

� However, almost a quarter of respondents plan on expanding their operations soon

(20.0%). Only one respondent will reduce operations and one plans to relocate.

7. Please check any type of investment or improvement you have made in your

business in the last two years. (30 respondents) � Forty percent of respondents have added additional products and services to their

inventory. Just over forty percent of respondents added additional promotional

activities (43.3%).

� Just over a quarter (26.7%) report having made physical improvements to their

facility’s layout or design, and 30 percent made system improvements.


8. Please check any type of investment or improvement you plan on making in the next one to two years. (29 responses)

� Like the previous question, about forty percent (41.4%) of respondents plan on

making physical improvements to their stores or offices.

� Less than a quarter of respondents (20.7%) do not plan on making any improvements

to their business in the next two years.


9. In addition to a strong economy, what are the critical factors for the success and expansion of your business (check ALL that apply) (30 respondents)

� Most respondents cite public access as the most critical contributing factor to the

success of their business (60.0%).

� Qualified labor (33.0%) and up-to-date equipment/technology (33.3%) are also

commonly listed as critical factors.

� An equal number of respondents stress the importance of financing, foot traffic, and

complementary businesses (23.3%).


10. What are some of the major issues or obstacles facing your business today? (Please check the TOP FIVE priority issues.) (28 respondents)

� A strong majority of respondents reported that the current condition of the economy

is the largest obstacle faced today (75.0%).

� General operating cost was the next most frequently reported obstacle (50.0%),

followed by a lack of customer traffic (32.1%).

11. Please expand on any of your answers to the question above. If you checked

"City/County/State code or regulations," please explain the issues or obstacles (10 respondents).

� “Signage - I am in a building where all the signs need to be the same - why do each

of us need to get a permit for a sign - it should be the landlord’s responsibility for the

permit and we just get a sign to match all others ( I have been there 2 years and still

no outside signage - permit costs too high for a small business person.)”

� “As an attorney with 29 years on Boones Ferry Road I have no real obstacles except

occasionally government relation affecting not me, but other businesses trying to

develop. My biggest concern is pedestrian access up and down Boones Ferry, and

particularly getting across the four lane road.”


� “Fewer customers than before. Building needs a frontage makeover. Insurance &

other costs need to be reduced. Parents who have lost their jobs can't afford our

goods and services.”

12. To keep your business healthy and competitive, which of the following types of information or assistance are important to your company’s growth? (Please check ALL that apply) (13 respondents)

� Most respondents report that marketing/advertising information is important for their

business to remain healthy and competitive (55.6%). The next most popular response

is market property and façade improvements (44.4%), followed by lean business

practices (37.0%).

� No respondents feel like they need help with loan preparation.

13. Are you interested in participating in a cooperative business marketing effort to

attract customers to the Lake Grove District or to encourage residents to shop locally? (28 respondents)

� Yes – 67.9% (19 respondents)

� No – 32.1% (9 respondents)


Section 2: The Future of the Lake Grove Shopping District & Business in Lake Grove

14. What identity or image would you like to see the Lake Grove Shopping District

develop for itself as a unique business district attractive to residents, employees and visitors? (21 respondents)

� “We need to tame the four lane street and make the corridor neighborhood friendly

visually and behaviorally. To attract people here, the place has to have attractions

and be attractive utilizing the natural features as much as possible. We need an

identity manifested in a logo and an inviting gesture of welcome.”

� “Unique building facades that tie all businesses together – but not a copycat of

downtown Lake Oswego.”

� “A more walkable area where people can park and do a number of activities, like

groceries, coffee, tutoring all at the same time.”

� “I would like it to become more pedestrian friendly so that we can have more retail

opportunities succeed, and more human life in the business corridor now dominated

by auto traffic.”

15. What types of businesses would you like to see the Lake Grove Shopping District attract or grow to improve its business mix? (21 respondents)

� Respondents suggest that they would like to see additional apparel shops, a book

store, and an office supply store in addition to more small retail shops.

� “Lake Grove needs an image similar to downtown LO. Restaurants, entertainment,

shops, theaters. It makes me want to have an experience here.”

� “A more walkable area where people can park and do a number of activities, like

groceries, coffee, tutoring all at the same time.”

� “Neighborhood-type businesses for local residents. We don’t need more traffic from

outside the area. There are too many cars on Boones Ferry now.”

16. What could Lake Grove businesses do to attract more local residents? (21 respondents)

� “Fliers promoting what we have. A Lake Grove Business Directory. Special events that

block off the street and rout through traffic down 217 to the freeways.”

� “Advertise to tell us what is available in the area. Maybe a business fair for residents

to see what is in their area. Many LG businesses are closed on Sunday - they could

stay open at least for the afternoon.”


� “Advertise and feature LG businesses in the Review on a regular basis. Create more

of a "village" concept with common areas, outdoor venues/events, excellent

restaurants/retail stores, etc. BUY LOCAL discount card.”

� “Fix the traffic flow on Lower Boones Ferry Road, especially the left hand turners. It's

becoming a slow, scary trip. Improve access to Post Office!”

� “I think that we could attract not only local home-owning residents, but also office

dwelling consumers with more pedestrian ease and more information on what's

here.”

17. What could Lake Grove businesses do to attract more visitors and other shoppers who live out of the area? (16 respondents)

� Many respondents noted that their suggestions for helping Lake Grove attract new

local residents would also help attract visitors and out of area shoppers.

� “Door to door fliers to all buildings and businesses in the 97035 zip code. Coupon

books to all 97035 addresses.”

� “Establish an identity that creates a street worthy of coming to see.”

� “Marketing and advertising.”

18. Please provide us with the following information. Please know that names, numbers and email addresses will be separate from other survey responses, which will only be used in aggregate. (23 respondents. The company names provided appear below.)

� Springcreek Counseling

� Import Auto Parts

� Gubanc’s Pub

� Johnson Acupuncture

� Law Office of Sonya Fischer

� Lake Music Center

� Executive Accounting, Inc.

� Lake Grove Garden Center.

� Andrews Furniture Galleries

� Pacific West Bank

� Shirley A. Bass, Attorney at Law

� Motor Cars by Vic

� Vic’s Auto Center Inc.

� Laurence Spiegel

� Mainland Property Management

� Naomi’s Lampshades

� Jenike Development and Real Estate

� Kumon Math and Reading

� Summit Financial Advisors

� John W. Lundeen / Attorney PC

� Rose L. Hubbard, Attorney at Law PC


19. Please share with us any other comments you may have. (9 respondents)

� “We're located in Kruse Way, so our focus will be a bit different. There are reasons to

tie the two districts together as we share services between the districts. Kruse needs

better retail/restaurant access without going downtown.”

� “In general, my clients like coming to my office, just off Kruse Way. However, the

Lower Boones Ferry Road area is another matter altogether. A hodgepodge which I

hope will soon be improved.”

� “I would like to see some serious consideration for the safety of pedestrians and

children. We see a lot walking here, especially near McDonald’s and I worry about

people on the narrow sidewalks with cars that don't stop for pedestrian signals.”


Appendix E. Retail Market Factsheet

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Lake Grove District Market Analysis

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