APR 1 1 2013
Transcription
APR 1 1 2013
RECEIVED APR 1 1 2013 PLANNING DEPT PRESERVE MALIBU To: Joseph Smith, Lisa Pope &Malibu City Council Members October 30,2012 Item 6A From: Preserve Malibu Comments regarding: Item 6A to be presented at City Council Meeting on 11.13.2012 LETTER FROM `PRESERVE MALIBU'IS IN RESPONSE ~TO: EXECUTIVE SUMMARY- From Stanley R. Hoffman and Associates Retail Market Analysis City of Malibu PRESERVE MALIBU REPLY: To make review easier, we have based our analysis on the order presented in the Executive Summary of the report and have pointed out some of the errors in fact and assumptions. Their summary is shown in italics. "EXECUTIVE SUMMARY" "This reportpresents a baseline market analysis ofthe current retail conditions in the City ofMalibu. This analysis includes an assessment ofretail market demand, market area demographics, taxable retail sales, and an inventory ofretail uses by category, type and location. The analysis examines, among other things, the amount ofretail space that can be supported by the local population of approximately 13,000 residents ofMalibu, compared to the amount ofretail sales captured by retaileYS in Malibu, The analysis reveals keyfindings with respect to the diveYSity ofthe existing retail environment in Malibu. The analysis also includes reference to the importance ofthe City's retail establishments to the City s generalfund revenues. Thefollowing are among the keyfindings setforth in this report:" PRESERVE MALIBU REPLY: Preserve Malibu has briefly reviewed this market analysis prepared for the commercial property developers in Malibu and presented to the City Council as part ofthe staff report for the city council meeting to be held on November 13, 2012. We have found serious errors in facts and assumptions that.render this report and its' conclusions irrelevant to the retail situation as it presently exists in Malibu. ~v.3•ti r ~7~ ~ y /~2~s c~2~E ~1./.az ~ L~t;l r Geography ofAnalysis This study is based on the market area geography including "Malibu, Hidden Hills, Agoura Hills, Calabasas, Westlake Village, Thousand Oaks and the areas within the Santa Monica Mountains between the cities". The report in various tables tries to analyze the shopping demand on Malibu retail based on the retail demand ofthis market area. Table 4-3for example breaks this demand down by city although it adds such cities as Santa Monica to the analysis. PM REPLY: Malibu has a small population of approximately 13,000 residents but is visited by over 15,000,000 tourists every year. Malibu's pertinent retail geography is solely comprised of Malibu residents and the 15,000,000 tourists. The cities listed in this report do not comprise Malibu retail shoppers. Residents from Westlake, Thousand Oaks, Agoura, Hidden Hills, Topanga, etc., simply do not drive over canyons to accomplish their retail shopping needs in Malibu. Their own cities offer a far superior base ofrequired retail shopping than Malibu. "Z" traffic shopping is mainly for gasoline. No local Malibu business would ever base their business plan or demographic analysis on the flawed geographical market area as stated in this study. Preserve Malibu urges the city council to consider the shopping needs of the residents ofthis city. We have a very unique retail problem in Malibu that cannot be evaluated by a generic study based on falsely stated market areas. Malibu is one of the few geographically isolated resort destinations that is increasingly becoming dominated by tourist shopping at the detriment ofresident serving retail, services and traffc needs. A ux►iaue solutiota is required_ Malibu is not a part of a small market area; it is a geographically isolated small market area dominated by a large transient regional tourist market. Demographics Malibu had a population of12,645 in 2010, and isforecast to grow to 13,888 by 2020, based on the SCAG 2012 RTP. This growth is an increase of1,243 persons, or 9.8 percent, and represents about 6.3 percent ofthe totalforecasted population in the market area of221,224 by 2020. PM REPLY: There is no mention that can be found zn the SCAG 2012 RTP (Southern California Association of Governments 2012 Regional Transportation Plan) of any projection/population number for the future growth specifically for Malibu or surrounding cities as .stated here, and on page 6 ofthis letter It is stated in this report that: population growth will be lower than in the last 20 years at merely 0.9%growth (not 9.8% as stated), 70% ofthat small growth will be from senior citizens. Senior citizens have statistically the lowest retail shopping spending ofthe- age brackets between 25 — 65 years old, as shown on the United States Dept. Of Labor / Bureau ofLabor Statistics/ 2011 Consumer Expenditure FROM THE SCAG 2012 RTP: Population The slower population growth pattern experienced in the last decade is expected to continue into the future. Between 2010 and 2035,.the annual population growth rate will be only 0.9%,which is lower than the growth rate for the past 20 years. The region will grow mainly through natural increase(See Figures 16-18). Households The growth of the senior householders will-represent more than 70% of the projected household growth in the region. However,the share of householders in the younger age groups will decline. In particular, householders 45-54 years old will show an absolute decline. Uncertainty in a Regional Growth Forecast and Expert Opinion In a rapidly changing and volatile economic environment, the usual economic and population projection models do not produce reasonable projections. This is particularly true of the short term projections due to the unstable nature of the economic and demographic assumptions. • Malibu's median age has increasedfrom 42.9 in 2000 to 47.7 in. 2010; compared to Los Angeles County at 32.0 in 2000 and 34.8 in 2010, Malibu has a relatively older population: PM REPLY: Again, senior citizens have statistically the lowest retail shopping spending ofthe age brackets between 25 — 65 years old, as shown on the United States Dept. OfLabor /Bureau of Labor Statistics/ 2011 Consumer Expenditure Survey. "Employment and Labor Force •About 90.4 percent ofworkers holding primaryjobs in Malibu commute into Malibufor work, based on datafi°om the U.S. Census's Longitudinal EmployerHousehold Data(LEHD). • Conversely, based on the same LEHD data, about 88:2percent ofthe laborforce living in Malibu commutes tojobs outside the city; both ofthese commuting statistics show Malibu's high degree ofinterconnectedness with the regional labor foYCe andjob base. •Employment in Malibu has dropped about 21.9 percentfrom about 10,000 employees in 2004 to about 7,800 employees in 201D. PM REPLY: It is statistically impossible for 7800 employees to be working in Malibu, including 2533 restaurant employees. These figures are not credible by any imagination. This section must be completely disregarded. Over this same period, employment grew 17.6percent in the retail employment categories ofretail tYade andfood service and drinking placesfrom 2,153 in 2004 to 2,533 in 2010. PM REPLY: The Southern California Association of Governments Report on Malibu: Between 2007 and 2010, the number of retail trade jobs in the city DECREASED by 9.5 percent. Household Income and Housing Value •In 2010, Malibu had a total estimated aggregate household income ofover $1.10 billion; with 5,267 households, the aveYage household income is estimated at $209,713. • The average household income in Malibu ($209,713) and the unincorporated areas outside ofMalibu ($189,343) rangefrom 2.5 to 2.75 times the average household incomefoY Los Angeles County ($75,982). PM REPLY: According to the SCAG the median household income for Malibu in 2010 was $122,291.00, The US Census Bureau states for 2010 $125,202.00. Nearly $90,000.00 less than stated in this report. In 2010, 21 percent of households earned less than $SO,000.Approximately 20 percent of the households earned between $50,000 and $99,999. Based on 2010 U.S. Census data,- Malibu had an estimated average housing value of$1,097,454 in 2010; about 77percent ofthe owner-occupied units in Malibu had a value of$1,D00,000, or more in 2010. PM REPLY: According to these percentages, they claim $5,780,290,213 housing value (1,097,454 X 5,267 households) and also claim that half the property taxes come from commercial property. Based upon the tax break down shown in table 1.1 on pg.2 this would imply a value of commercial property of over 6 billion dollars, which is exaggerated by a factor of at least 10. Trends in Taxable Retail Space • Malibu experienced a small increase in taxable retail sales per capita during the fiveyear period, growingfrom $14,686per capita in 2005 to $1S,022per capita in 2010, in constant 2010 dollars, or 2.3 percent. In contrast, all other surrounding communities saw declines in their taxable retail sales per capitafrom 2005 to 2010. •From 2005 to 2010, taxable retail sales in Malibufor Clothing and Clothing Accessories stores increased by 14.7percent, while Food Services and Drinking Places increased by 8.4 percent. as PM REPLY: Although, according to the study, Malibu's employment dropped 21.9% in the six years and the population is rapidly aging, the study points out that clothing and clothing accessory stores sales increased by 14.7 %and food service and drinking places increased by 8.4% during approximately the same period. During the same period Home Furnishing and Appliance Stores dropped 51.1%, Building material and Garden Equipment Stores dropped 44.7% and Other Retail dropped 14.3%. (Table 4-4, pg. 22) These statistics fly in the face of other conclusions regarding the Malibu retail market. Could it be, the population gets older it stops gardening, furnishing its housing base and use of local services and decides to primarily shop for clothes and go out to dinner and drink? We think not. We at Preserve Malibu believe these statistics prove the need for a proactive solution to the problem of a rapidly declining local retail base with an aging population of citizens. From the SCAG: Real retail sales DECREASED by 6.2 percent between 2005 and 2009. Between 2000 and 2009, real retail sales per person for the city decreased from $14,881 to $13,565. (pg 17 & 18). Distribution ofOverall Retail Space. This survey claims that theYe are approximately 400 retail-oriented uses in Malibu. Approximately 26percent(223,164 squarefeet) ofthe total Yetailoriented space is classified as "GDBREG"uses which include grocery, drug, banking, real estate, and gasoline stations. • Commercial space totals about 990,000 squarefeet, ofwhich about 847,000 squarefeet is retail-oYiented and 143,000 squarefeet is office, as shown in Table PM REPLY: Claiming approximately 400 retail uses in Malibu is nonsensical at best. Can anyone find 7Mailing-Shipping stores, 11 Home Design/furnishing stores or 11 Home Improvement stores?(Table 5-1 pg. 26). What is important to note is that the survey shows 57 existing apparel stores and 52 existing restaurants which dramatically highlights that Malibu's retail market is severely out of balance. Of utmost importance for review are Malibu's main shopping areas, which are currently under consideration for needed diversification and formula retail ordinances. Preserve Malibu, under separate cover, will provide an accurate inventory of the retail establishments in those areas. Most importantly, this survey fails to consider the future commercial base in Malibu. There is over 1,200,000 sq. ft. of new commercial projects in the pipeline for the civic center area alone. The ordinances under consideration by the city council should be aimed at the millions.of square feet of new projects that will soon be going through the planning process. The.survey shows 41 vacancies in the commercial base, which in many cases are currently being withheld from the market for non-economic reasons and thus normal market forces are not in play. Without the planning tools to assure future diversification and local serving business, the future will move forward in the direction that it is currently heading. Corporate formula businesses that cater to tourists are rapidly replacing the small businesses that provide the vital services that this community needs. The opportunity for a healthy entrepreneurial, small business base that adds to quality of life and resident's needs is rapidly evaporating. Malibu's geographical limitations are unable to sustain a future retail base that is solely dependent on destination shopping. The impact of traffic presently is hazardous; to add additional automobile trips to a saturated PCH would be catastrophic The purpose of the proposed ordinances is to provide for a plan that over time, corrects and retains the balance in retail uses and local shopping opportunities for residents. Currently, The Malibu Lumber Yard has 39% formula retail tenants and the Malibu Village has 30% and growing formula retail uses (table 5-4 pg 28). Already, Malibu has a saturation of retail apparel and a quickly dwindling supply of local services. Distribution ofFormula Retail • Ofthe approximate 400 retail-oriented uses in the City, thirtyfour (34), or 8.S percent, are identified as `formula" Yetail uses; for the purposes ofthis report, these aye defined as retail and restaurant companies that have at least ten locations throughout the United States. PM REPLY:Per City Inventory and developer's figures, there are approximately 100 retail stores in Malibu. Out of those, there are 32 Formula Retail Chains at last count. Or 32%Formula.Chains and growing. Malibu has approximately 68 Restaurants; out ofthose 21 are currently chains. 30%Formula Restaurants and growing. General Fund Revenue Contribution ofRetail Development • Generalfund revenues total $20.8 million, based on the City ofMalibu's adopted budgetfor 2012-2013. When combined,property taxesfrom commercial properties (about $4.4 million) and retail sales taxes (about $2.6 million) comprise an estimated 34.0 percent ofthe total General Fund revenues. PM REPLY: Although this study somehow attributes approximately one half of the property tax revenue generated in the city to commercial property, there is no visible breakdown in the 2012-13 city budget that confirms these numbers. It defies logic that in a city with such an enormous price tag on residential housing, the commercial contribution could be as large as claimed. For instance, Malibu recently had one house sell for $38 million and another for $21 million in the last 6 months. The entire Malibu Bay Company holdings are based on a $45 million sale. These numbers to commercial property don't add up. The 2002 City of Malibu economic study attributed apbroximately one third of the retail sales potential to big box stores and auto dealerships that are not coming to Malibu and the majority of city sales taxes come from gas stations, restaurants and grocery stores. It is very important to remember that the purpose ofthe proposed ordinances is to correct the current imbalance in local serving businesses and to assure that the future millions of square feet of commercial development is also balanced between the demands of tourists and a healthy local retail environment. The city of Malibu is not lacking in revenue and should not base its planning decisions on maximizing its' revenue but on rather good, solid planning. Table 6-1 shows that Malibu has 143% ofthe food and beverage stores it needs, 174% ofthe clothing stores it needs and 198% of the food service and drinking places it needs (table 6-1). Those should not be considered revenue sources for sales taxes at the expense of services that this community of citizens need. Retail Supply/Demand Analysis •Residentsfrom Malibu would support approximately 768,000 squarefeet oftotal Netail space in the City, while residentsfrom the combinedzip codes of90265 and 90263(the local retail market area) would support approximately 1,155,000 squarefeet oftotal retail space in Malibu. •Approximately $225.6 million in retail sales was captured in Malibufrom the local market area which represents 64 percent ofthe total retail household demand($353.9 million)fi°om Malibu, and 43 percent ofthe total retail household demand($530.4 million)fi°om the local retail market area. • While a portion ofthe total retail space in Malibu (847,000 squarefeet)-can be supported by visitors and contribute to the local commercialproperty and retail sales tax base, there remains an opportunity to capture additional local market demand in a variety ofcategories. well • The retail shops and restaurants located in the Civic Center area have the greatest potential to capture additional local market area demand as as serving visitors. Both contribute to the City's local tax base. PM REPLY: The retail analysis ofthe local market area is fundamentally flawed since it covers area codes 90263 (I.e.: parts of Ventura county) and 90265 (i.e. Topanga). The essential data to analyze must be based on Malibu's true local market demographics. One think is clear and that is that Malibu has no additional needs for: Food and Beverage Stores(as shown143% is presently provided) Clothing and Clothing Accessories Stores(174% presently provided) and Foodservice and Drinking Places(198% provided). Malibu presently has nearly twice the number food and clothing/ accessory businesses as needed. Table 6-1.The tables and the study does not address the commercial centers per se and apparently include all of Malibu. Does the city of Malibu want to continue to turn over the center oftown and Malibu's main shopping areas to tourist oriented formula shopping to the exclusion ofresident serving businesses? Preserve Malibu Summary: Malibu has the capacity to provide local residents with a healthy retail and service environment. Malibu.does not have the transportation infrastructure to become a tourist-shopping destination. Do we want to turn our civic center and West Malibu retail hubs into tourist-oriented Formula Retail hubs and exclude local residents from their only gathering places? Do we want to have the formula retail look and feel of Sherman Oaks or Glendale? Are we going to effectively plan for a potential 2 million more square feet of retail commercial and offices that heading for Malibu? What will happen to the civic nature of Malibu when the last local service businesses like dry cleaning leave and residents must drive long distances for the most basic of services and goods? Where will Malibu citizens gather? What are the environmental costs associated with a lack ofresident serving businesses and the associated travel "over the hill"? Additional transportation and circulations problems associated with tourist shopping cannot be effectively managed -how will sewers in the civic center affect unsustainable commercial growth? Will this city council finally step up to the plate and plan for a healthy and vibrant future for the citizens of Malibu? Thank you, Preserve Malibu Citizens RECEIVED pP~ 1 1 2013 MALIBU RETAIL OVERVIEW 2013 PLANNING DEPT: Retail Stores •Restaurants •Resident Services CENTERS OVER 10,000 Sq. Ft. CENTRAL CENTERS - 10,000' = 4 Malibu Village, Malibu Lumber Yard, Malibu Country Mart, Colony Plaza EAST CENTERS - 10,000' = 0 WEST MALIBU - 10,000' = 2 Point Dume Village, Trancas Mart RETAIL STORES —TOTAL 100 ~`*CROSS CREEK /COLONY— 75 * 75% OF ALL MALIBU RETAIL EAST MALIBU - 14 WEST MALIBU — 11 FOOD /RESTAURANTS —TOTAL - 68 **CROSS CREEK /COLONY PLAZA — 28 *40% ALL MALIBU FOOD EAST MALIBU - 20 wF~T nnAi iRi i - ~n RESIDENT SERVICES -TOTAL 66 CROSS CREEK /COLONY PLAZA - 20 **EAST MALIBU - 25 45% of ALL MALIBU SERVICES WEST MALIBU — 21 FORMULA CHAINS —TOTAL - 64 **CROSS CREEK /COLONY — 49 * 80% OF MALIBU CHAINS EAST MALIBU — 7 WEST MALIBU — 8 ** = Majority (*Based on Malibu City Inventory Report, Landlord Inventory Report, visual count. Businesses are changing constantly, please update and confirm count /list as needed.) RETAIL STORES ( "X" means achain /locations over 10) **CROSS CREEK AREA / MALIBU COLONY PLAZA — 75 (Formula Chains — 32) Colony Plaza — 9 (Chains: 3) 4 Vacant Spaces Pacific Coast PetsNews Stand Theodore Beach Theodore Man Beckers X Clarisse CVS X Vitamin Barn Rip Curl X Lumber Yard - 11 (Chains: 10) 4 Vacant Spaces Alice - +Olivia X Maxfield Intermix X J. Crew X James Perce Lumberyard X Kitson Malibu X Kitson- Kids X Quicksilver X Lorna Jane X Canyon Beachwear Tory Burch X Country Mart — 41 (Chains: 14) 2 Vacant Spaces Beauty Collection Mac Makeup X Diesel Malibu Colony Room at the Beach Malibu Shaman Toy Crazy Silver Threads Traditional Chrome Hearts X Vintage Malibu 9026 Eyes Optical Shop Aspen X Oliver Peoples X L' Occitane X 98%Angel Planet Blue 2 7 for All Mankind X Anouk Canvas Earnest Sewn Encore X Henry Bequelin JuicyCouture X M.Fedric X Madison Malibu Lifestyles Malibu Lifestyles Soft Morgane Le Fay Planet Blue Essentials Double RL X Ralph Lauren W's X Ralph Lauren Polo X Ron Herman Rubin Chapelle Tylie Malibu James Perse X Vince X John Vazvatos X Koletti Bambini Malibu Village - 12 (9 Chains) 7 Vacant Stores Banana Republic X Nike /Salvation X Missoni X Radio Shack Electronics Sephora X Ron Herman Men Malibu Eye Center X Levis X True Religion Lanvin Paris Men X Lanvin Women X Perricone X Cross Creek Misl - 3 Anawalt Hardware Artifact Tree Thrift Super Care Drugs *Charter Building being converted to Retail ** RETAIL EAST MALIBU —14 (Formula Chains — 0) Cosentinos and Antiques Old School Malibu Clothing Adventure Gear Brand Pacific Coast Windows Malibu Divers Country Liquor A & B Hardware European Equestrian — Closed? Malibu Cigar Lounge Malibu Gallery and Framing Claudia Schaefer Boutique Zuma Jay Malibu Surf Shack Malibu Rugs ** RETAIL WEST MALIBU —11 (Formula Chains — 0) Pinnacle Point Dume Pharmacy Clout Drill Sea Lily Trancas Nursery Cosentino's Nursery Painted Attic Zuma Moon Beach Monkey Cycle Design Bike Shop TOTAL RETAIL STORES -101 FOOD /RESTAURANTS *~ RESTAURANTS CROSS CREEK /COLONY PLAZA — 28 (Formula Chains —10) COLONY PLAZZA — 7 (Chains: 3 = 50%) Subway X Coogies Bu Sushi Malibu Yogurt Starbucks X Ralphs Grocery X ** China Wok (coming) LUMBER YARD — 5 (Chains: 1 = 20%~ Cafe Habana Chocolate Box Cafe Crumbs Bake Shop X James Perse Restaurant (coming) Pressed Juicery MALIBU COUNTRY MART — 11 (Chains: 4 = 40% Coffee Bean Nn~J~~rl~g X x Johns Garden K-Chocolatier Malibu Kitchen Malibu Village Wine Nobu (Mr. Chow's) Starbucks X Taverna Tony Tra Di Noi Malibu Mutt Grill X MALIBU VILLAGE — 4 (Chains: 3 = 33% Guidos(going out) Marmalade X Grom X Chipolte X CROSS CREEK MISL - 1 GodMother ** RESTARUANTS EAST MALIBU — 20 (Formula Chains — 7) Country Liquor Moon Shadows Restaurant Dukes Restaurant Circle K Food Mart X Giovanni Restaurant Thai and Sushi Restaurant Colony.Liquor Store Plate Restaurant PC Greens D'Mores Pizza X McDonalds X Malibu Inn KFC X La Salsa X Charlies Restaurant(out, something new coming in) Jack In The Box X New Pier Restaurant Fish Grill Nobu **New Restaurant PCH X **RESTAURANTS WEST MALIBU — 20 ~rormuia irains — 4j POINT DUME VILLAGE — 8 (Chains: 4 = 4 Pavilions X Savory D'Amores X Subway X Lily's Cafe Sunllife Organics Juice Starbucks X Coffee Organics WEST MALIBU PCH — 13 (Chains: 1 = 8 Paradise Cove Cafe Beau Rivage Geoffreys Malibu Sea Food Sage Vital Zuman Spruzzos Malibu Ranch Market Sunset Restaurant Kristi's Coral Beach Cantina Zooma Sushi Starbucks X TOTAL FOOD /RESTAURANTS -68 SERVICES (*Operating for general public. Not included law, medical, real estate, etc.) SEVICES CROSS CREEK &COLONY PLAZA — 20 (Formula Chains — 5) COLONY PLAZA — 6 (Chains: 3) Bank of America X X Wachovia Ogdens Dry Cleaner Nail Salon Post Office First Bank and Trust X LUMBER YARD - 3 Malibu Art Barn Dance Studio Salon At The Yard MALIBU COUNTRY MART Malibu Car Wash Ambience Skin and Body 5 Point Yoga McMillan Canale Salon MALIBU VILLAGE — 4 (Chains: Hollywood (Malibu)Theater X Colony Cleaners . European Shoe Repair Wells Fargo - X CROSS CREEK MISL — 3(Chains: 0) Simons Alterations Tailor Manes Hair Studio Canine Collection SERVICES EAST MALIBU - 25 (Formula Chain — 0) Heads Above All Hair Salon Kristsoff Ball Salon Verizon Store Rainbow Cleaners Magic Nails Lari's Hair Works Hot Vinyasa Yoga The Pit Martial Arts Malibu Grooming Glass Queen Pilates Sanctuary Salon Eco Auto Spa Faith Valentine Facials Spic and Span Dry Cleaners Malibu Business Center Malibu Barber Thai Bodyworks Sand Shell Palm Reader Lee La Foot Massage Budget Rent A Car Computer Pros — Computer Repair Malibu Rehab Gym Malibu Dog Grooming SERVICES WEST MALIBU - 21 (Formula Chains — 3) POINT DUME VILLAGE -6 (Chains: 2) Yoga Pt Dume Cleaners Bank of America X Chase Bank X R Quick Stop Oceanne Salon ZUMA CENTER - 5 Malibu Fitness Shermans Dog Grooming Escobar Karate A-1 Dry Cleaner Malibu Oasis Salon TR.ANCAS — 2 (Chains: 1 Trancas Dry Cleaner Postal Annex - X MALIBU WEST PCH - 8 Malibu Stage Company Malibu Gym Veronica Skin and Body Salon at Malibu Creek Bella Hair Salon Polish Nail Salon Sandpiper Pet Hotel Delle Hair Design SERVICES TOTAL — 66 NOT INCLUDED IN RETAIL COUNT Private Offices: law, medical office, real estate; manufacturers,interior / architecture, construction, rehab, etc. MALIBU COUNTRY MART - 9 Staats & Co,LLC Keystone Entertainment UCLA Medical Group Malibu Acupunture Platner and Associates Westside Estate Agency Storage Storage Storage PT DUME VILLAGE - 7 Marquise Property Company Bart Baker Farmers Insurance Aissa Wayne, Attorney at Law Church of Scientology Malibu Restaurants LLC Moxie Films Sotheby's International Real -Estate ZUMA CENTER - 2 Charter Cable Malibu Locations MALIBU EAST — *No Centers Over 10,000' RECEIVED A~~ 1 1 2013 FORMULA BUSINESS ORDINANCES ACROSS THE NATION PLANNING DEPT Examplies of: Cities that have enacted Formula Business Ordinances: Coronado, California San Francisco, California Port Townsend, Washington Bristol, Rhode Island Ojai, California Village of Islands, Florida, Sausalito, California Province Town Massachusetts Newburyport, Maine Dennis, Massachusetts Bencia, California McCall,Idaho Sonoma, California i~aniucicei, l~assacnuse~cs San Juan Bautista, California Fairfield, Conneticut Provincetown, Massachusetts Calistoga, California Sag Harbor ,New York Cannon Beach, Oregon Fredericksburg, Texas Barnstable, Massachusetts Catham, Massachusetts Chesapeake, Maryland Concord, Massachusetts Formula Restaurant Ordinances McCall,Idaho Port Jefferson, New York Pacific Grove, California Solvang, California Sister Bay, Wisconsin Carmel, California Sanibel, Florida Springdale, Utah York, Maine Bainbridge Island, WA Calistoga, California Ogunquit, Maine Chesapeake City, Maryland San Juan Bautista, California San Francisco,California Town of Duck, North Carolina Port Townsend, Washington Sausalito, California Examples of: Cites in process of enacting Formula Ordinances that we know of: Arcata, California Chicago, Illinois Ocean Beach, California Venice Beach, California Brattle, Vermont Point Richmond, CA St. Paul, Minnesota Andersonville, Chicago San Anselmo, CA Napa Valley, CA Mill Valley, California East Hampton, New York Breckenridge, CO And MANY MORE ... Ordinances that restrict store size North Elba, New York Madison, Wisconsin Carpentria, California Turlock, California Taos, New Mexico Portsmouth, Rhode Island Rockville, Maryland Nobleboro, ME Whatcom County, Washington Neptune Beach Florida Atlantic Beach, Florida Kansas City, Missouri Walpole, New Hampshire Warwick, New York Santa Fe, New Mexico Bellingham, Washington. Agoura Hills, California Ashland, Oregon Bozeman, Montana Kauai, Hawaii Hailey,Idaho Talbot County, Maryland Belfast, Maine Northampton, Maine Norway Ireland ** Please confirm with your own research. Thank you! RECEIVED APB 1 1 1013 ~'~N~NG DEP10 MALIBU PLANNING DEPT'S QUESTIONS OF POTENTIAL"UNINTENDED CONSEQUENCES" OF FORMULA ORDINANCES. MALIBU PLANNING DEPT../FROM THE STAFF REPORT: "Unintended Consequences: The ordinance could have the potential to result in the proliferation oflower qualify and/or undesired businesses,increased tourism,and higher commercial rents." Listed below are replies (excerpts)from some ofthe cities spoken to that already have Formula Business Ordinances on the books in their city. The lists of our City's questions regarding possible "unintended consequences" were asked. City Planner's replies conclude: no such negative consequences. In fact, these cities have experienced successful outcomes: CITY OF BRISTOL,.ROAD ISLAND - Principal Planner: Edward Tanner i. Question /Unintended Consequences: Has this city's Formula Ordinance caused a proliferation of lower quality.and/or undesired businesses? Edward Tanner: "No,it has had the opposite effect. Last month a "Cash For Gold", retail was denied and deemed inappropriate for downtown. They found a different space in another section, so the ordinance has worked." 2. Has this city's Formula Ordinance caused increased tourism in your town? Edward Tanner: "Certainly hasn't hurt tourism. We consider this Ordinance our main tool to keep our downtown unique and quaint. Bristol didn't want to look like every other downtown." 3.Has.Bristol's Formula Ordinance caused higher commercial rents? Edward Tanner: No,our Ordinance has not caused the rents to go up. Citizens have been very happy to have this Ordinance." CITY OF OJAI,CA - Planning & Building Technician: Shari Herbruck i. Question/Unintended Consequences: Has this city's Formula Ordinance caused a proliferation of lower quality and/or undesired businesses? Sherry Herbruck: - "This has not happened in Ojai." 2. Has this city's Formula Ordinance caused increased tourism in your town? Sherry Herbruck:"No,this has not happened." 3.Has Ojai's Formula Ordinance caused higher commercial rents? Sherry Herbruck:"Rents have not increased due to the Retail Ordinance. They've remained stable." CITY OF CALISTOGA~ CA — Senior Planner: Erik Lund uist i. Question /Unintended Consequences: Has this city's Formula Ordinance caused a proliferation of lower quality and/or undesired businesses? Erik Lundquist: "No, did not happen." 2. Has this city's Formula Ordinance caused increased tourism in your town? Erik Lundquist: "Tourist that come to Calistoga come for one reason -they like the rural small town character that the Formula Ordinance has been able to protect.." 3.Has your Formula Ordinance caused higher commercial rents? Erik Lundquist: "Rents fluctuate due to market factors. The rents have not increased due to the Retail Ordinance." CITY OF SOLVANG,CA - Associate Planner: Lisa Martin 1. Question /Unintended Consequences: Has this city's Formula Ordinance caused a proliferation of lower quality and/or undesired businesses? Lisa Martin: "No. Absolutely not." 2. Has this city's Formula Ordinance caused increased tourism in your town? Lisa Martin: "We have the same amount of tourism which depends on keeping our small businesses and restaurants." 3.Has Solvang's Formula Ordinance,caused higher commercial rents? Lisa Martin: "No,not at all. Typically chain stores bring in higher rents. The ordinance has kept rents lower for our Mom and Pops in Solvang." PORT TOWNSEND,WA — Planning Director: Rick Sepler 1. Question /Unintended Consequences: Has this Port Townsend's Formula Ordinance caused a proliferation oflower quality and/or undesired businesses? Rick Sepler: "No,it is has keep the business on the higher end. It has kept our businesses successful. If you asked us how to grade how it has protected the character of our City - it would be an A." 2.Has this city's Formula Ordinance caused increased tourism in your town? Rick Sepler: "Yes,in a positive way. The Ordinance has kept the city authentic which is what residence and visitors want." 3.Has the Formula Ordinance caused higher commercial rents? Rick Sepler : "No has not make rents higher,they are still reasonable." CITY OF CORONADO CA — Senior Planner:Ann McCaull i. Question /Unintended.Consequences: Has Coronado's Formula Ordinance caused aproliferation-of lower quality and/or undesired businesses? Ann McCaull: "New retail stores warrant additional review to get more information so that there's time for people to think about it and decide if this is a store that this city wants -instead of simply being green lighted by the city. By and large our ordinance has kept the downtown successful and character intact. We do have a few formula stores that have come in and followed the criteria. H&R Block wanted to move their offices to a better part of town wasn'tpedestrian friendly so it was denied. The Chamber of Commerce, who was-.once against the Ordinance,is now OK with the process - in fact is working together now to protest the H&R Bock that wanted to come in." 2.Has this city's Formula Ordinance caused increased tourism in your town? Ann McCaull: "It has stayed steady." 3.Has Coronado's Formula Ordinance caused higher commercial rents? Ann McCaull: "The Coronado Retail Ordinance went through even though there was opposition. There was never a full consensus from developers and Chamber. The SUP review process keeps competing chains-from coming in. The ordinance has helped our vacancies stay low and our rents have stayed reasonable." RECEIVED ASR 1 1 2013 MALIBU'S SMALL,INDEPENDENT BUSINESSES THAT MALIBU HAS LOST Partial List (*list supplied by Residents) Point Pizza Guido's Restaurant Malibu Lumber Savory Restaurant Keene's Hardware .Zuma Hardware and General Store Rock Star Jewelers Diesel Bookstore (re-leased after community pressure) Malibu Books & Co Giovanni's Salon Bernie Saffire Charlie's Restaurant Zuma Video Pt Dume Chinese Restaurant papa Sacks Beach Monkey Ice Cream Shop at Busch Juice Shop at Busch Philip Darey Blue Moon Clothing Carlos and Pepi's Restaurant Alice's Restaurant Surfmonk Bay City Beauty Supply Malibu Frame Pt Dume Pet Store Blank Clothing Store PLANNING DEPT Malibu Beach Club Ballet by the Sea Granita Restaurant Casa Escobar Pt Dume Coffee Shop Colony Coffee Shop Nan's Swim Shop Indiana Jones Connie's Kids Malibu Florist Edward Jones Hair Jamies Clothing Dharma Greb Wine Barrel Cosentino Florist Dean's Clothes Lanvin Men I.,ingerie Shop at iross reek Zuma T Shirt Shop Vitamin Store at Bush Crush Tops Denny McLean Gallery Malibu Lifestyles 3rd Store Kids Gymnastics Color Me Mine Ceramic Painting Shop at Cross Creek Mailboxes, Etc Copy Store/Notary at Pt. Dume Goodman Jewelers Shell Shop at Zuma Grassroots Clothes. Terence Davis' Great Music Studio Property Beverly Praviero Piano Studio Koi Perfume Manufacturer Terra Restaurant Leather Waves in the Country Mart Malibu Masonry Energia Allegria Atlantis Clothes Prichett Rapf Realty in Cross Creek Shabby Chic The McClean Art Galery Atelier de Chocolate at Cross Creek Euphoria Records St Henri's Indonesian imports I.,umber Yard Ron Herman Men Country Mart Art/Photo Gallery Dume Room Baskin Robbins Pier View Restaurant Mayfair Market Cookes Market Trancas Borderline Restaurant *please confirm, duplicates may be included DUPLICATES Nan's Swim Shop Indiana Jones Connie's Kids Edward Jones Hair Jamie's Clothing Dharma Greb Wine 3arrel Dean's Clothes Lingerie Shop at Cross Creek Zuma T Shirt Shop Vitamin Store at Bush Crush Tops Malibu Lifestyles Kids Gymnastics Color Me Mine Ceramic Painting Shop at Cross Creek Mailboxes, Etc Copy Store/Notary at Pt. Dume Goodman .lewelers Shell Shop at Zuma Grassroots Clothes Terence Davis' Great Music Studio Property Beverly Praviero Piano Studio Terra Restaurant Leather Waves. Malibu Masonry Energia Allegria Atlantis Clothes Prichett Rapf Realty Shabby Chic Room at the Beach Salon at Malibu Creek Art Galleries in Cross Creek The McClean Art Galery Atelier de Chocolate at Cross Creek Euphoria Records St Henri's RECEIVED APB ,1 2013 ~''~NNIIyG pE~, I'EI'I~~,I~DINE i~iNIVC'~SITY ~z'hool of Ptibfic ['u~i~~ t~ir P4fblir Er~~iyen~e~icii€~ci Civic_I~sicicrshi~i Memo: To: City of Malibu Planning-Staff From; Davenport Enstitute far ~ubfic Engagemenfi &civic Leadership at Pepperdine School of Public Policyf Pete Peterson RE: Keypad Palling Results:from-the R~taiE {~rdinan~e Workshop of December'13, 2D12 This report covers the facilitation pf, end results from t#~e Refai[ Qrdinance V1%orl~sh~ap conducted by the Davenport knstitute for public Engagement and Civic Leadership at the Pepperdine School of Public Policy. About the Ravenpcar~ Institute"a.~d "Participatory Governance"; The purpose o~ Pe.pperdine's davenport Institute is to support and prampte the public's informed involvement in Iacal policy-making and se~'vice delivery. To fl~is end we-consult on, fund, and gain pudic sectr~r leaders to lead th'~s~ participatt~ryeffork~. Uver the (ast s~ueral years we have cansuited on ciozer~s of public engagement e~farts on projects ranging from water policy In Mtarnbalclt County to political reform in San DPego. We have also provided cities, counties and speciaE districts with aver $300,t700 over the past four' years thraugt~ our dntl lal PUbIiC Eng~g~rTtent Grant Progl'afi71. C?ur "Pub!'ic Engagement;The Vital leadership Skil( in Difificult Times" training seminar has been offered to ~verS~C} public sector officials throughout California. We haue also Ind fihi$ sere roar at the annual cc~nferenees of the International City/County Management Association (ICMA},and the National league of Cities. Increasingly, we are finding thaf governmenis in Califnrni~ — particularly at the local level —anus# iniei-act wifih.their residents in new ways<to make decisions that have become more difficult. As Sin Mafea County Manager t~av~ Boesch recently noted in an interview,"When I first dot into. (public administration} ~p years ago, public agencies weren`tsure they wanted much civic engagement or puk~lic invo[vemet~t. Tire decision: making process was more efficient and streamlined,..We have gone through a sort of evolution in our thinking, recognizing bet#er today that to be successPuf and to -have:broad public awareness and support we h~v~ to be deliberate. ~: in engaging Qur community.,, This dialogic, participatory uiew of public engagement varies from the"informing" view of public engagement, which. is more monalogic-and hierarchical. Conducted well, these public prflcesses Dauenport knstituke for Public Engagement ~ Civic Leadership E 2425a Pacific Coast Highway, Malibu, CA 94263 http:/twww.commonsen~eca.org provide Councils and staff with better information din some cases, better ideas) as they seek to make better decisions on issues ranging from budgets to land use to public safety. Keypad Polling Results:(number of responses - % of total) Thefollowing are the keypad poling resultsfrom the Dec 13 workshop with number ofresponses and percentages of total shown —top responsesforfirst section are in bold. tt should be noted that the total number ofresponses varied throughout the evening (particularly prior to the "community serving business"segment) with a high of57responses on a particular question and a !ow of37. Please also note that several questions had multiple answer opportunities. All responses should be understood in this context. Thefirst series of questions(1-17J were pre-set by Planning Staff, the responses to the "community serving business"section were generated organically out of small group discussions by attendees. The Davenport Institute uses TurningPoint 7"echnologies'keypad palling devices. Question 1: Are you a current resident of the City? Number of responses: SO • Yes:36 - 72% • Na: 14 - 28% Question 2: if you are a current resident, how long have you lied in the City? Number of responses: S3 • 1-3 years: 2 - 4% • 4-9 years: 7 - 13% • 10-15 years:6- 1Z% • 16-20 years:4 - 8% • 21+years: 20 - 38% • I am not a current resident: 14 - 26% Question 3: Do you currently own, manage and/or work at a business in the Civic Center? Number of responses: 50 • Yes: 17 - 34% • fVa: 33 - 66% Question 4: How many stores worldwide would you consider a business being a "formula" business? {Tie between 3responses) Number of Responses: 53 • 3 or mare:8 - 15% • 5 ar more: 12 - 23% Davenport Institute for Public Engagement &Civic Leadership ~ 24255 Pacific Coast Highway, Malibu, CA 90263 ~ htip:!/www.commonsenseca.org • 10 OC rTfOr2: 9 - 17% • 13 or more:l2-23% • None of fihe above: l2- 23% Question 5: Which of the following "objective" findings would you consider as being the most important criteria for PC to consider when evaluating a proposed formula business? Number of Responses: 52 • Locafiion directly adjacent to other formula (side-by-side): 3- 6% • Wid#h of a formula's street frontage:0-0% • Gross square footage of the formula:8-15% • Total number of formulas in a shopping center: 29 - 56% • None of the above: 12 - 23% Ques#ion 6: Which of the following "objective" findings would you consider as being the most important criteria fnr PC to consider when evaluating a proposed formula business?"(top choice removed) Number of Responses: 52 • Location directly adjacent to other formula (side by side): 9 -18% • Width of a formula's street frontage:5 -10% Gross square footage: 36 - 72% Question 7: As an objective finding, if PC considers the "total number of formula businesses" in a shopping center,. what maximum percentage should be used to determine if an overconcen#ration would result by the addition of one more formula business? Number of Responses: 54 • 15-25% of the center is formula: 18 - 33% • 26%-33%af the center is formula: 7-13% • 34%-50% of the center is formula:5 - 9% • 51%-65% of the center is formula: F -11% • 66%-75% of the center is formula: ].Z - 22% • None of the above:6 -11% Question 8: As an objective finding, if PC considers the "square footage of the formu{a business," what should the maximurt~ allowed square footage be? Number of Responses: 54 • 1,500 square feet: 24 - 37%a • 2,5fl0 square feat: 8 -15% • 3,50Q square feet: 4- 7% • A,500 square feet: 2 - 4% • 5,500 square feet: 7 - 13% ~ None of the above: 13 - 24%a Question 9: Which of the following "subjective" findings would you consider as being the most important criteria far PC to consider when evaluating a proposed formula business opening in davenport Institute for Public Engagement &Civic Leadership ~ 24255 Pacific Coast Highway, Malibu, CA 90263 ~ http:/lwww.commonsenseca.org a shopping center? Number of Responses: 57 • Proposed use will not impair the rural character of the Civic Center: l5 - 26% • Proposed use has been designed and will be operated in anon-obtrusive manner:3 - 5% • Proposed intensity of the use is appropriate given the other uses that exist an the site and adjoining sites: 26 - 46% • None of the above:l3 - 23% Ques#ton 10: Which of the following "subjective" findings would you consider as being the most important ceiteria for PC to consider when evaluating a proposed formula business opening in a shopping center?(top choice removedfrom possible responses) Number of Responses: 57 ~ Proposed use will not impair the rural character of the Civic Center: 27 - Q7% • Proposed use has been designed and will be operated in anon-obtrusive manner: l3 23 ~ None of the above:l7 - 30% Question 11: If an existing #ormula business expanded square footage, what amount would trigger the ordinance requiring the business to obtain a CUP to continue operation as a formula? Number of Responses: 55 • Expansion of 250 square fee#: 21- 38% ~ Expansion of 500 square feet:l0 -18% • Expansion of 1,000 square feet: 5 - 9% • • Expansion of 1,500 square feet: 5 - 9% None of the above:l4 - 25% Question 12: If an existing formula business increased seating, what percentage increase would trigger the ordinance requiring the business to obtain a CUP to continue operation as a formula? Number of Responses:57 • Increase of 10%:21- 37% ~ Increase of 25%:17 - 30% Increase of 5d%:7 - 12% • None of the above: 12 - 21% Question 13: Do you agree that the following uses should be exempt from the ordinance? >Grotery >Pharmacy >Gas Stations >Insurance >Real Estata >Banks and financial Number of Responses: 55 • Yes: 31- 55% Question 14: f#"Na," which of the fallowing uses should be removed from the fist? Number of Responses: 24 ~ Grocery: 1- 4% Davenport Insi+tute for Public Engagement &Civic Leadership ~ 24255 Pacific Coast Highway, Malibu, CA 90263 ~ htfp:l/www.commonsenseca.org • Pharmacy: 1- 4% • Gas Stations: 2 - 8% • insurance: 2 - 8% • Real Estate: 6 - 25% • • Banks and Financial:l - 4% N~ uses should be exempt(the ordinance should apply to all usesj:ll- 46% Question 15: If "No," which of the following uses should be removed from the list?(top choice removedfrom possible responses) Number of Responses: 26 • G rocery: 4 -15% • Pharmacy: 7 - 27% • Gas Stations: 3 - 12% • Insurance:8 - 31% • Banks and Financial:4 -15% Question 15: Should relief #rom the ordinance be granted if a .property owner is unable to fill a specific tenon#space with a formufa business after being denied a Certain # of times? (e.g., after "x"number ofattempts, the owner could frl! that same tenant space with aformula and not be required to obtain a CUPJ Number of Responses: 52 • Yes: 38% • No:62% Question 17: tf "Yes," how many attempts should be required before the tenant space would be exempt from the ordinance{and a formula could go in without a CUPJ? Number of Responses: 26 people answered 1-4 • 1.: 38 • 2: 23% • 3: 12% • 4: 27% . • None of the above: SO%/ 26 people (hal#) Davenport Institu#e for Public Engagement &Civic Leadership ~ 24255 Pacific Coast Highway, Malibu; CA 90263 ~ http:/lwww.commonsenseca.org Grflup Disctrssian of whit constitutes ~ community-:based .business ~aeh breakout group listed 3 adjectives to describe a community based business. We ended;up with'ten different a~{jectives; 1. Regular Household Use 2. Convenience ~. Necessities 4. Prr~xirr~ity to Home 5. Residenfi Serving 6. Deily-Use7, Local Employment 8. ~ornmunity Involvement 9. Unique Local Character ~;G~, A~fardable-Basic Goi~ds First Round ~f 1loting: select tap adjective NurC Baer of Responses:39 3;. Regular Household Use: 21°l0 Z. Convenience: ~°lo Rlecessities:0% 4. Proximity to Nome: 3% 5, 6.. 7. S. R~St~eny_~ ~g:~3 3~aily~ Use: 3% L~acal Employment: 3%a !Community involvement: ~.0% °. 'Jrque ~r~cal ~P~arac~~~: 2~.~a 10. Affordable; BasicGoods;-18% Second Round of 1lo#ire :select top ad~+~ctive (resident seruing remoued from option list) Number of responses: 3~3 1. Regular HouseF►r~td Use: 18°la 2. Convenience; SRS 3. Necessities:S% G. Pl'{)Xlttll~~t tO HOiYi~': ~°/A 7. Community 1n~~c~ivernPnt R°Jo ~. iJ ~ t,r~c~t Character: ~t~l, 9. Aff~~dable Basic ~c~ods: ~4R'p Third Round of 1fo#ing; s+~t~ct top adje~tiu+~ {unique 1pcal character removed from opfiion lisi} fVumber of responses: 37 1.. Regular Household -Use: 2210 .Davenport institute for Public Engagement & Givie Leadership ~ 24255 Pacific Coast Higi~way, Malibu, CA 94263:) http:ltwww.commansenseca.ark 2. 3. 4. 5., fi. 7. Cc~tivenience:l4~a Necessities: 8l Proximi#y to Name;3°l0 aaaly Use: ~°~ LAGa! Employment;3~0. Community Invofuenieiit: 8%ti ~. I~ffor~labf~ ~i~~ od$<4~~~, Fourth Round of Voting: se~ectto~ adjective {affr~rdable k~asic gaols removed #rom option list} Alumberuf responses:37 .Re~ul~r H~usehc~ld Use:. 2, ~vi~ve~~ier~ce:36~o 3. Necessities: 5l 4. Proximity ~a hfome', 110: 5~: C}aily Use; 3~0, 6. t:~cal Employmettfi 8% 7. Community Involvement l9°l0 Fifth Round of Voting: set~ct tvp adjective {regular housQhol~! use ret~oved from option tilt} Number of responses:: 37' 1, Convenier~ee:2~°l0 2. Necessi~ies:2~.% 3; Proximity to Home: 1010: 4, Daily Use: 3%o 5. Local Employment: 5%a ~ t1~ l~~fYr1Yr}~iy~4~r 1r~~h~~rn~n~#r.'1 '" r . ~. In eonc(u~ion; the steps taken by Staffto engage residents on'this issue were.deeply appreciated by participants, and it is hoped that these.results inform Staff, Council, and Planning. Ccimmissioners as they formuEate the related poi~eies. itte Executive Director; Davenport Institute-Pepperd ne Schaal of Public Policy Qaverrport lnstitu#e for Pubtic Engagement & C vic.Leadership ~ 24256 Pa4ific Coast Highway, Malibu,CA 9Q263 j hitpl/www+:eommansensecaorg Malibu loses its character as celebrities and chain stores take ove.. http://www.guardian.co.uk/world/2011/nov/20/malibu-loses-cha... RECEIVED e Malibu loses its character as celebrities and chain stores take over APR 1 1 2013 PLANNING DEPT Residents decry the decline of their community as family-run concerns are priced out by big business Kate Hodal in Malibu guardian.co.uk,Sunday zo November 2oii o9.56 EST Some seafront homes in Malibu cost more than £ioo,000 a month to rent, with therise in property prices driving local businesses and residents away.Photograph: David Mcnew/Getty Images It was once a sleepy seaside town,a place where surfers could shop at family-owned markets alongside celebrities such as Goldie Hawn and John McEnroe, who admired Malibu's laid-back feel in a town of Hollywood hustlers. All that has now changed,say long-time Malibu residents, who complain that a series of rent hikes has forced small shops out and brought higher-end boutique stores in. With luxury chains such as Missoni and James Perse replacing the city's well-loved independent bookshops and family-run restaurants,locals have been forced to adjust to the changes."Paparazzi Zone" placards now dot the Spanish stucco walls of Malibu's plazas. There are celebrity Rolls-Royces and BMWs with blacked-out windows in the car parks, and yachts owned by billionaires such as Larry Ellison and Roman Abramovich often occupy the sun-drenched bay. "Malibu really used to be'the boonies', a place where people rode their horses to the local market to do their shopping and the clothing store sold nothing but cowboy gear with buckles and boots," said resident Judy Van Schoyc, a local estate agent of 20 years' standing."Then,just like the rest of LA,it got developed. A university came in, more people moved here, and property prices went up. Now you can rent a house on the beach for $i~o,000[£io8,000] a month, and mom-and-pop stores just couldn't afford to stay." As the locals moved out, drawn by lower rents further afield,investors moved in. Many of Malibu's businesses, which residents say long defined the city's sense of self, were bought out by businessmen who some tenants say are "only interested in profits, not community". 1 of 2 1/11/12 10:16 PM Malibu loses its character as celebrities and chain stores take ove... http://www.guardian.co.uk/world/2011/nov/20/malibu-loses-cha.:. In the newly rechristened Malibu Village, only a handful ofthe original businesses remain after a sale in zoos that saw their rent increase three-fold to $i8,000 a month, said one tenant who wished to remain anonymous. "People think that because this is Malibu,everyone has tonnes of money and they don't mind spending $io on an ice cream or $500 on a T-shirt. But not everyone's rich, and not even the rich people want to waste their money like that," the tenants said. "Now the locals would rather go over the hill [to an adjacent city]to save even just a couple of dollars than come down here,because there's nothing for them to do here anymore, nowhere to hang out." Concerned residents have taken up the matter at council meetings, where solutions to "bring back the community" have centred around retaining a certain percentage of stores for local retailers. Butfor some disgruntled residents, it may be too late. "I miss the old way oflife, having stores that actually provide a service to me,of knowing who works in the store, who owns the store, who's who around here," says Greg Latham, a former stuntman who has lived in Malibu for 4o years. "I think_ it's kind of over,that it may be time to move. But I also know it's up to us,the locals, to support the local shops — or whatever remains ofthem —and buy and do what we can here in Malibu while we can." Ads by Google Master of Arts: Dinlomacv Earn a Masters in Diplomacy Online at Norwich U. Get a Free Brochure! www.Norwich.Edu/Diplomacy Virtual Office Services Friendly Live Receptionist From $59 Comm Tools, Great Area Locations. www.DavinciVirtual.com $279 Executive Suites Ready-to-Go Offices. Unbeatable rates. www.Re~us.com/ExecutiveSuites c~ zoi2 Guardian News and Media Limited or its affiliated companies. All rights reserved. 2 of 2 1/11/12 10:16 PM ISSUE BRIEF ~~~~-: REEI1/F APR 1 1 2013 Saving Independent Retail PLANNING DEPT, Policy Measures to Keep Neighborhoods Thriving New York City's independent retailers can't catch a break. During the past decade, locally owned retail businesses in neighborhoods all over New York City were on the losing end of the city's.strengthening economy. Improving economic conditions in their neighborhoods should have helped small local retail businesses. Instead, prosperity turned into a threat as rising rents made it difficult for many of them to continue operating. Now in the economic downturn, already weakened independent retailers are fighting for their survival. Retailers are plagued by high rents, competition from chains and the Internet, limited access to credit, and other stresses, but their decline is far from inevitable. This Pratt Center Issue Brief details measures the Mayor's Office can and must take to keep independent stores thriving. Other cities are pursuing creative strategies to strengthen local retail and maintain the diversity of their neighborhoods. The mayor should appoint a retail task force to explore alternatives and launch new initiatives to sustain independent bsuinesSes. As independent retail stores close with increasing frequency, New York is losing more than places to buy the necessities and luxuries of life. It is being drained of essential ingredients for a healthy economy and strong, livable communities. A 2004 study in a Chicago neighborhood showed that local businesses poured 68 percent of their revenue back into the local community, while for national chains the return was only 43 percent. The aggregate losses, though difficult to quantify, are even greater. The gradual disappearance of the "mom and pops" from many shopping districts undermines the diversity and uniqueness of what defines New York City —what attracts entrepreneurs to build businesses here, lures tourists to visit, and offers residents a connection to,proprietors that is more than economic. Small retailers are part of the glue that holds neighborhoods together, but that bond is dissolving, and weakening community quality of life along with the city's economy. ~ ~ r'_ ~ E ~~ a: ~ ~.,~ :; i ~ ~~ ~ ~ ~ .~.+ '~ -; ; i~ ~~ , i-•---..~ {p ~ ~ ~ ~ j ~_ - E: ~ ~~ y f ~ , } I 1.2 4. k~ ~ j ~ ~. ~ a~'i .~,' l~~;~ : ~.~" ,.` ~ ' ~ i ~.° _ - ~ ~, i } ~~ ~ "~ '' %~ ~'. f ~~ ~- - ~ l ~ ~ ~ -~ ~~ 1 tL ~ ..r~~t. ~~ a ~ „_ ; ~ } r " `~ ~~ ~• Church Avenue in Flatbush, Brooklyn, is ahigh-traffic retail strip and a major destination for area shoppers. But like other popular middle-class shopping districts around the city it is suffering from a troublingly high vacancy rate - 11 percent of its storefronts are now empty -and little city support for struggling merchants. Independent Retail's Plight According to the Real Estate Board of New York, retail rents rose 54 percent between 2001 and 2008. In surveys, New York City merchants cite high rent as the biggest challenge they face,followed by the increasing cost of goods and a customer base that was dwindling even in boom times. Increasingly, shop owners operate under leases that run for five years or less, down from aonce-standard ten, leaving them vulnerable to rent hikes and eviction. Recession-driven declines in business have not been matched by significant decreases in rents. In Manhattan, storefront rents in major retail corridors have dropped about 11 percent over this time last year, reports REBNY, but that figure reflects considerable variation among neighborhoods. On Harlem's 125th Street,for example,the average asking rent is now $119 annually per square foot, up from $107 a year ago. Nafional chain retailers are continuing to expand their presence in major shopping districts in Manhattan and the boroughs, and even as some chains close down others are arriving for the first time. Property owners,on major commercial strips tend to seek chains, not only because they are willing and able to pay higher rents than independents can, but because of fears that independent retailers are a risky bet in today's challenging economy. Chain Asking rents on Harlem's 125th Street average $119 store operators seek to cluster together, and their presence dramatically inflates rents. On Steinway Street in Queens, annual asking rents on a chain- $107 a year ago. per square foot, up from dominated block exceed $70 per square foot, compared with $40 for a nearby stretch where many independents have closed. Even that rent is too high for independents to sustain, and the block has at least a dozen vacant storefronts. A Missing Piece of the Economic Development Agenda In this year's State of the City address, Mayor Bloomberg declared "strengthening the quality of life in every neighborhood so recession does not lead to disinvestment and abandonment" a cornerstone of his plan for economic recovery. Similarly, the administration's "Five Borough Economic Opportunity Plan" identifies the need to "help businesses" In an uncertain economy, property owners seek chain retailers for empty storefronts. as central to "creatingjobs today." The plan highlights major development projects,from the Kingsbridge Armory to Willets Point to Coney Island, as part of plans for future job creation. While these mega-projects may bring needed retail space to underserved areas, other parts of the city are blighted by empty storefronts formerly occupied by small businesses. The Bloomberg administration needs to develop a comprehensive plan to examine and address the underlying challenges faced by small retailers, and provide support for struggling merchants and commercial areas with high vacancy rates. The Department of Small Business Services(SBS) is charged with assisting independent ventures, but its services to retailers are limited. The agency only provides financial assistance to retailers enduring emergencies or directly displaced by city-sponsored development projects. Retailers are generally excluded from subsidies for businesses that are relocating or expanding. And, more fundamentally, the agency needs to pursue policies that can level the playing field to help small businesses deal with the unique disadvantages that threaten their survival. What the-City Can Do There is much the administration can do now to deliver on the mayor's promise of strengthening neighborhood quality of life through nurturing local retail. New York City should start by looking to models from more than 20 states and 50plus cities that have new or proposed laws aimed at fostering a stable, thriving and successful local business sector, turning to tools that can be combined with smart incentives and a community planning process to encourage the kinds of businesses that neighborhood residents want and need. The policy tools now employed or under consideration by other cities and states fall into three general categories: • • Land use regulations, especially zoning provisions to prevent or inhibit the proliferation of chains Financial incentive/benefit programs and market control mechanisms to reward landlords for accommodating local retail Support programs - everything from niche marketing to grants and loans for business owners - to bolster local retailers' ability to compete Pratt Center far Community Development Saving Independent Retail: Policy Measures to Keep Neighborhoods Thriving August 2009 2 Strategies that could help New York City sustain independent retail: FormulaBusiness (i.e. "'Chain"1 Restrictions is In place in San Francisco, Seattle and 15 other cities A formula retail establishment is commonly defined as having eleven or more other retail sales outlets located in the United States, has a trademark or servicemark, and maintains two or more standardized features such as merchandise, facade, decor, uniform for workers, signage, etc. San Francisco has the strongest restrictions on chain retailers in the nation, using a combination of land use regulations within specifically created districts where special review required before a chain can open. Size Caps on Commercial Property put for to In place in Madison, Wisconsin and 29 other cities Instead of banning formula businesses outright, size caps serve prevent large floorplate-seeking chains from moving in. A store size cap amends a zoning ordinance, either an entire city or for designated areas within a city, to limit the physical size of retail stores. Some municipalities an outright ban on stores above a certain size, while others limit large stores to specific areas. Small towns and large cities across the nation are using store size caps to protect small and local businesses, decrease traffic congestion, lessen the burdens on infrastructure, regulate building design, and maintain pedestrian-friendly districts, among many other planning goals. Neighborhood-Serving Zones In place in Palm Beach, Florida Neighborhood serving zones are created in order to meet the everyday consumer needs of local residents, as opposed to attracting tourists. Such regulations limit the size and "use type"' of retail stores in certain districts in order to maintain the area's character and pedestrian-friendly streets. Palm Beach, Florida is the only city in the nation to have this type of zoning. Big Box Tax Proposed in Maine and Minnesota While a big box tax provision has yet to pass and become law, the concept may be worth pursuing. Generally a tax of this kind would create a disincentive for chains trying to locate in certain districts within a state or city. In cases where the retailer was willing to pay the tax and open a store, the tax revenue could be used to support local businesses and or retail chain workers earning less than a living wage. Community Land Trusts A community land trust (CLT) is an existing policy toot being used in a handful of locations around the country to address the need for affordable housing. In a CLT, a private, nonprofit corporation acquires land parcels in a targeted geographic area with the intention of retaining ownership of the land for the long term. The nonprofit CLT leases or sells structures on the land at below-market rates to eligible residents, who enjoy the benefits of low rent or mortgages while agreeing to restrictions on subletting or reselling. This model could be applied to commercial or mixed-use land and could be a viable strategy for protecting small businesses from rising rents, by taking property off the commercial market and leasing it at below market rates to residents and small business owners who demonstrate a need for it. Shop Local Campaigns Austin, TX and manycitiesaround the nation (including NYC) The loss of mom-and-pop shops in cities across the nation has inspired governments and the private sector to create marketing campaigns for local products and local retailers. These campaigns share resources such as websites and brochures to promote "shopping local'" and are often a venue for merchants to meet and discuss best practices. Pratt Center for Community Development Saving Independent Retail: Policy Measures to Keep Neighborhoods Thriving August 2009 Recommendations The Mayor's Office should establish a citywide local retail retention task force made up of interested elected officials, government agencies, policy experts, small business owners, and community organizations to systematically analyze the problem of independent retail attrition and potential solutions, and to develop an implementation strategy to address them. The goal of this group should be to develop a package of policies that: 1. Create financial incentives and programs to support independent stores 2. Restrict or limit chains in certain neighborhoods where they are causing the displacement of local retailers 3. Make sure enforcement of sanitation, health, and other codes does not unreasonably burden small local establishments in Community and business groups have been discussing policy measures such as the Small Business Survival Act now under consideration -the City Council, which would allow retail tenants to seek binding arbitration to prevent excessive rent hikes. To build a foundation for thriving small businesses,the local retail retention task force should evaluate additional ideas that have emerged from this collaborative thinking, which include: • Limiting the escalation of rent. One proven model is a voluntary incentive program in targeted locations. With support from the New York City Department of Finance,the Downtown Alliance manages such an initiative for Lower Manhattan, providing a tax abatement for landlords who agree to a schedule of modest rent increases to local (non-chain) businesses. • Set-asides of space for small businesses, vendors, and entrepreneurs. For any commercial development over 50,000 square feet, owners should be required to include businesses at a range of sizes, going down to 250 square feet, with targets for locally owned small businesses. For city-owned or city-sponsored developments, rents must be below-market and leases at least five years. • Zoning ordinances to control number,type and size of retail establishment in specific areas. Ban or place limits on the number of national chain stores that can occupy specific district, guaranteeing that a majority of the retail establishments are independent and locally owned. Restrict ground floor sizes and ban banks and hotel lobbies from occupying storefronts in new construction. Reducing merchants' energy costs and making local retail greener. Programs such as NYSERDA energy audits and the Smart Loans program are already in place to provide fee waivers,fund matching, outreach, and • training to businesses seeking to reduce their costs and operate more sustainably. The city needs to do more to connect local retailers to these services. • Finally, because local retailers don't have an advocate within city government,. we recommend the creation of a Local Retail Ombudsman in the office of the NYC Public Advocate. For more information on the Pratt Center's work in support of neighborhood retail, contact Vicki Weiner, vweinerfdpratt.edu, or visit http://www.prattcenter.net/neighborhood-retail. Pratt Center for Community Development 1 379 DeKatb Avenue, 2nd floor, Brooklyn, NY 11205 1 778.636.3486 I www.prattcenter.net RECEIVEp APR 1 1 2013 PLANNING DEPT fare +~omn+eani~y Dev~laipn~e~t n`'r :.;,: ~, .r-' ~g ~ Lo~a~ Reta~~: ~ssu~es ~ S#~ra#eg~es io n ~o~r #fie ~►~~► ~Il~e~ro Cha ~~ , 5~ ~ ~ ~' r ~o~~~g ~o~ir~i e ~ ~ ~. :~ , ;,,~' ~ ^; , ~ ~y~,~~zt 1 ~Y~~~ R ~~ ~ — P — — ---A ~ b`icA~ ~d1/~o~r, Derect+or o~ 9'~are~nim~ $~ Per~~erar~nono P~ar~ C~It+~ for Co~mm~~aureoG~► mlt Mello ~~ ~r LW~ ;~'~_ __ `. - ~o ~o~~~►~~~~es ~e~~e~we ~~e ~~o~Me~ Aesthetic issues F; Economic hardships ~y G~ ~ For.. business owners ~. Foy IQw income cor~niur►ities Y Envyro~nrr~enta ~ ~aBrims Workforce`issues AII of the above APA Metro Chapter Zoning Committee Pratt Center far Commanify Development , f~ iti~ Cultural issues ? ~~ ~~, ~, nnay 29, Zoos 1'_ ~~~~~~~ S~~c~~c~~~s ~~~~~~~c~ ~c~~~o~c~MM~ _~ Pla~y~~ng Defense; Land Use ~ Regulations or blo~ki~g c~air~s.arid big box retailers Bart~ning ..Atlo~i~g there only when #hey b~rir~g benefits F~~. ~~~ ~, ~~r°. .... ~ ,,r ~ ~:. :policy ~ _ Leveling the playing field through ~~blMC PNaying Offense: ln~entNVes & Assis~anc+~ 3 .: =~ ~`.~. ~ ` .~:. _~, ~~~~` Tax based benefits to business and p~ope~ty owners Su~po~# p~ograr~s to bolster ~o~al ~ei~a~l . ,~ ~c~uit~r Strategies __ In~npro~rir~g job qua~ii~y 1-telpir~g displaced businesses to find r~ew locations _: ,~ ~ Pratt C+~nter for Co~nmueity Developmeni# - '`~ ...__. — APA Metro Chapter Zoning Committee nnay 29, Zoos ~~~~~s~~r~ S~~c~~c~~~s: ~c~~s ~ ~Mo~~s ~n 1 ~armula Business Restrictions Goal: to deter Formula Businesses altogether _~ o~ Requires .special permit`to locate ~ i__ _ - 9 o Certain types,.are banged, e,g. gain restaupa~nts ~~ ,., o Caps o~ square footage keep saes relatively s a~~ t'-~ o Design guic~eMir~es ~equi~e ~rl~er~ ~o ~e co~te~#ual o ~ir~it to overall nu~ri~er of Forr~~u~a businesses ,, i~~ M£,~ ~n~k_: `~;~ ~= ~, 7 cities ba~r~ or cap restaurant c~a~r~s •'3... q x ~ 12 cities ban or cap retail chairs ~Pratt Center for Community Developmce# ' C _ APA Metro Chapter Zoning Committee nnpy 29, Zoos :` ~~~~~s~~~ S~~~~g~~~s: ~~~s ~ ~M~~Cs ~orr~nu~la BusMness Rest~ictrons: San ~ranc~sco r largest city to have Formula Bus~~►ess provision Bci~ns chains i~r 2 neig~►bor~oods Regulates them nearly everywhere`else ~` '~R ~_F': ''y 3 b,~. o Public review of all F,B, requests o Loops at retail mix ~ w ~ ~ Ya~anc~r rate, ~neig~bo~~ood ~. C~'IC~I'C~C~C~ :,~ ~' ' , "` ~, o Cap #urn the~r~ a~vwa~r ,~_ ~ -_ "~ .~~ Y: ~ ... ~1~ ~ ~- ~,~ ~~, ~,~`' ~ tom- ~,~', }, ~?fr, ~.~ ~{ ~~ ~. t °, ~:. ~~ ~-r -. ~ '~~{~,~ s: APA Metro Chapter Zoning Committee Pratt Center DevelopMnen# fak CommuniRy nnay 29, Zoos ~~ ; ~~~~~,s~~r~ S~~c~~c~~~s: ~c~~~ ~ ~N~~Cs 2 Store Size Caps Goal: sustain small-scale, pedest~iar~ oriented retail centers; __ ~, prevent negative in~pact5 of big ~o~c retail o ~ E~c~s~M~ -land use f~can~eworks o~ cow~~ehe~ns~ve i~la~►s_ _ ~~ ~~ o Esta~~is~~~rn~a~in~u~squa~e footage #or retcair s ~.,~... L ~~ ~~~,. ~:. ~:~ ~;.; o Require s~ecia~ permits.for stores under cap but over. specified square footage N~ighboirhood level regulations in 3 cities _ Citywide.in ~7 cities _~~~,-, Countywide in ~ states ,~ ~ _ . __ .. _-- - ~ _ __ a APA Metro Chapter Zoning Committee .Pratt Center for Community Deverlopmie~tif nnpy 29, Zoos ~~~~~s~~re S~~c~~~~~s: ~c~~s ... ~ ~M~~C~ 1 - ~~ - Store Size dap: Belfast ME Zar~ir~g divdes'city Mnto use. ~ist~icts Maximum:size o~€ 7 ,000 s ~, applies to all comr~ierc districts Special per~nit:.required for iretraMl aver X0,000 s,f, in ,_-: Qthe~r districts ~.~~ ~"L ~~ ~ } 3 F~ ` _ ~~ . _- ~ ►~~ _ r ~ ~ ~ - (. Lod: - ~.,.... _'ac ~?`~tu7~g, ~~ r~' fi ~. '~ ,=` ~ fir,-~: x. s c i.~' ~~C7 ~~ ^.::~~' .~ ~jy x .~. APA Metro Chapter Zoning Committee Pratt Center foe Community Development ~ nnay 29, Zoos ~~~~~~~w~ S~~c~~c~~~s: ~c~~s ~ ~M~~Cs ~~~ 3, Neighborhood Serving Zo~r~es Goal: prevent destination `retail and -touri serving chains f~or~n displa.cNng,slaca~ s#ore~ Requires special permit for:retail over #~iE specified size ~ Has to be ~`neighborhaod-serving" .: , Palrr~ Beach FL —only citywide law o Stogies over 2,004 s.~ rec~uRre pe~n►~it o ~Appl~ca~t must de~o~nst~ate 's#ore is 'for towr~speople~a APA Metro Chapter Zoning Committee ,~ Pratt Center for Commanity Development May 29, 2008 W_ _. ~~~~~s~~~ S~~c~~~~~s: ro _ y,, = _ ~. Retail Deve opr~nent ~. o~a~#or~unr~ ~ ~ '„ Goal: Temporary suspension of,any largescale retail developrt~ent ~alid~ public purpose,.. limited duration, used fob planning 10 or rr~o~e since 1998 Matey inn ~a~ral areas Moab Ufi 0 6 r~~o~th ban 40,000 s.f. a Size cap p~rovisio~n under f` ~~~ ..~ ~.z~~. ~-~1 ~~ '"~;~~: _-. .,, ~ ... o :~ ~,{~xr~: .: ~~;. F ~ ~~ ~~~~F~ ~~~~~~~~~~;:.~ ~~~~.~ - ~, , r, >.~ S~ a _. ~--:~ ~. ~~;~ `°~ ~ ``x ~.' ~ for 7.~, . ~y. ;~ -, _~;. <-.C,:... ~~ i. Center ,~"~ Praft Community Developmee~ x ; >~~a APA Metro Chapter Zoning Committee May 29, 2008 _. ~~~~~s~~r~ S~~c~~c~~~s: ~~~~~~~~c~ ~~~~~~~ -. 1. Corr►r~uni~y Irx~pact Review. ~.:,~~ Goal: Assess impacts of proposed retail dev ~. establish criteria for approval. Development nest be n~o~e good than bad R o local ec4norr~y, jobs &infrastructure o His~oric~~atural resources { ~~I 1 1 cities passed o~ proposed ~8ra~tleboro VT o Reviev~r of projects.> 65,000 s.f. o Requires eco►~or~ic` & con~r~u~~rit~r ' cassessr~e~t ,_~° ~~~ a ,~ , a ~~ ~~}"~"` `~. .,L~. APA Metro Chapter. Zoning Committee Center ,~ Rratt Co~nmeni~ly Development I #or May 29, 2008 ~~~~~s~w~ S~~c~~c~~~s: ~. Retail Sector ~1linirnum~Liv ng Wage Ordina~nce d Goal: ordinances typicdll~r target.a city's corporate business partners Chicago's (~c~iled) 1N/L W ordinance ~targeted ``large retailers" o Over 40,000 s.f, $1 billion revenue. o- Requ~ir~d to provide r~~~r~~~ur I~v~~ng.wage i3~ r~ir~i~~ur~ benefits , to workers ~ o ~IlayoraN veto t V~~t~~ ~~1~T ~'~ Loy Wag~s~ Loss ~,',~=ads ~~ APA Metro Chapter Zoning Committee ,~ Rratt ~+~nter _~R~ for Communi~yr Ltevelopment nnay 29, Zoos ~~~~~s~~~ S~~c~~g~~~s: ~~~~►~~~~c~ ~~~~#~~ tsoa~: t.ounteract negar~ve econor~►rc errecrs or ~~g aox _ ~. deve~o rt~enfi ~ ~~ ~:~~ o Funds used to r►~ake up for lack of e~plo~ree bee#its ;~,. ,.-~,--------~_-----.-,.-~..= ,.~. '-~`' ,is. ~ o Provide necessary:,i~frastru~cture 2 sates have ~` ro~osed bills Minnesota — fiax ir~iposed if: ~'~'~~'~ ~~ .;~F-{; o~ Re~re~,ues > X24 nail o Wages ± ~e~efits ~ ~22,040~year F o. ~~a or more part #irne workers APA Metro Chapter Zoning Committee May 29, 2008 #o~ Community Development .<<, f~ ~~~1' ;~; ~~~~~s~~r~ S~~c~~~~~s: Good APA Metro Chapter Zoning Committee ~ Pratt Center for CommMnity Development May 29, 2008 ~~~~N~~~ ~~ ~M~~~~c~ ~~~M~ 1 - Proposed Coranr~rercial Rent Control Goal: Protect cor~n~erc~al tenants ~~rorn~.:.d~s~placen~er~t due i~o rising rents o'N1~~ law 19~6~~ 9b3,expired o Alb~~~r. ~ 948.~te~po~rrary) o Ber~te~ey CA`~~ ~a#e 1970s~~ 980s Proposed ~IYC IegMSlation 1987 -. o . CM Ruth Nlessi~ger & Cou~eil colleagues o, Respor~di~g to displacer~er~t o ArbMtrcatio~n #or tenants subjected to 23°~0 rest increase o,:. Defeo#ec~ Eby ._ . ~.... , Cou~c~l ~..~_ ~ p1'gff ~ir~11I'~'1` for Community Dexelapmenf APA Metro Chapter Zoning Committee May 29, 2008 {Mw. :~~ r,. . .-~ ~~~~M~~~ ~~ ~M~~~~g~ ~~~N~ V VVt~• ;vv~~~rv~ ' v~v ♦ v +vrv+ v zv wv ~ v +v space to local- retail establishmen#s ~ ~ f t~,. ~~ x~ .., a x .':: o For ~e~nr co~~truction over certain square . #ootaget,;°.~o must ~e se# aside for local ~etcail o Rece~tMy ac~►ieved by a Nlinr~ec~polis conin~unity though a CBA o'Proposed by co~~ur►it~r as dart of ;' .'b,~.:: ~,~~' a ~~ ~~~ ;~ ~ ~3'~' Sheet Rezoning APA Metro Chapter Zoning Committee Pratt Center for Community Development nnpy 29, Zoos A - ..~ .~<~.. ~~~~M~~g~ ~~ ~Mc~~~~~ ~~~4c~ _. _ _ 3. Proposed Incentive to Deep ; rents Mow g Gaal::reward landlords who offer long leases o~ belawrharket rent f o Good La~~dlo~rd /Good Neigh~o~ Tax credit . ,_ . .. _ o Senior Citizen, Renfi Increase ~xerr~ption APA Metro Chapter Zoning Committee Pratt Center for Community Developmeni~ May 29, Zoos _.,_ _ _ ~~ _ _ O~~s~w~ S~~c~~g~~~s: M~~~~~~~~s ~ __ ~ ~ss~s~c~~~~ ~ p 1. Tax Breaks for Small Businesses ,; Variet~r of state prog~~r~s give ta~c credits to ~~~~ o`Inves~o~s inn s~c~ll ~us~r~esses ~A~~ ~y ~~ o Contri~u~to~rs to s~alN busi~neu ir~cubato~s ~N10) :a o' Cor~oi~ations v~vMt~ sr~aNl business ~evolvir~g finds'(N~N1) ~Qwa Srr~all Business Tax Deduction -.: ~. ~ ~ ~ ~ o Businesses ~nrit~ < 20 employees,`under ;, ~~ r~,i1M~o~ gross revenue ~_ o Addit~o~al dec~uctNO~ o~ 6~%o wages ~o~ crew e~ployeez ~'' . ~ n,~►,~ ~~,«~t aw:~~~~x ~~r.r~~~~~t ~~~t~~s APA Metro Chapter Zoning Committee Pratt Center '~, ~ ~,, ~, -` Y~° for Community Developmeet nnpy 29, Zoos _ O~~s~w~ S~~c~~~~~s: M~~~~~~~~~ g ~ ~ss~s~c~~~ ~y1S -', al Purchasing Preferences ~, I: States ar~d cities buy products #ron~ locally owned' :^; ~~_ ~r;~~~ ".~ Lw ~;: asses ~~ ts~ local economic activity, er~,ploy~ent~ '~f: evenue~~~ °~34 APA Metro Chapter Zoning Committee ~ Pratt ~ent~er for Cammanity Develop~nenf nnpy 29, 2ooa 0~~~~~~ S~~c~~~~~s: M~~~~~r~~~s ~ ~~~~~c~~~~ APA Metro Chapter Zoning.Committee Rratf Center for Commanify Development nnay 29, Zoos ~~~~~~ S~~c~~~~~s: M~~~o~~~~ .~o~ Q~c~M~~~ VoluntarY benefits programs. Goal: offer ass~stanceto ~' er~nployers who provide benefits Brookl~rn HealthWorks Proposed Idaho Tax Credit for Sr-~all B usiness Health Plans o Employer pays 'S0°~o health coverage o X800 air ~a~l tam credit peg en~p~oyeE ~~ Pratt Center for Community Dexelopm~nt t.,~ ~~ ~~jr~.-. ,: x~' ~~~..ti ~; ~~~; ,'1, ~, ,,~,,, ~. . ~.~:_ . ~ . APA Metro Chapter Zoning Committee nnpy 29, Zoos ~~~~~~ S~~c~#~c~~~~: ~4,ss~$~~~c~ ~~s~Mc~~~c~ ~~s~~~ss~s APA Metro Chapter Zoning. Committee Rratt Center for Community Devalopment May 29, 2008 Study Finds Shopping Local Generates Almost Four Times the ... http://news.bookweb.org/print/8822 P~AIVNING DEPT; Study Finds Shopping Local Generates Almost Four Times the Economic Benefit By Dave Grogan Created 09/06/2012 - 2:01pm A new study conducted in Salt Lake City, Utah, has found that Indies generate almost four times as much economic benefit for the surrounding region as do chains. The study, "Indie Impact Study Series: A National Comparative Survey With the American Booksellers Association: Salt Lake City. Utah i,~," stressed that a market shift of just 10 percent from chains to independents would keep an additional $362 million in the regional economy every year. The study was conducted by the research firm Civic Economics and was sponsored by Local First Utah. The study is part of the Indie Impact Study Series ~z~, a nationwide research project, being conducted by Civic Economics in partnership with the American Booksellers Association. "Other studies across the country, from Austin to San Francisco to Chicago have been very helpful to all of us in our efforts to further the local movement," said Betsy Burton, co-chair of Local First Utah, co-owner of the The King's English Bookshop ~3~, and an ABA Board member."But having the actual figures from our home city is compelling to the public and to local government officials in a whole different way." Burton noted that the study's findings mean that "right here in Salt Lake ... we can say with pride, a dollar spent in a local business means a huge amount to all of us in economic terms." She also noted that the study has spurred media interest and has "already raised the profile of local businesses in a significant way. So has the idea that shifting a mere 10 percent of one's shopping to local can add nearly half a billion dollars to the city's economy." Local First Utah and The King's English collected surveys from a total of 22 independent businesses, including both retail and restaurant establishments in the community. The businesses provided information on revenue expended in five categories: profits paid out to local owners; wages paid to local workers; procurement of goods services for internal use; procurement of local goods for resale; and charitable giving within the community. Civic Economics then analyzed the data and compared it with four chain retail stores and three national restaurant chains. The findings were telling. Independent retailers returned an average of 52 percent of their revenue to the local economy, while the chain retailers recirculated only 13.6 percent. Local restaurants returned some 78.6 percent of revenue, while chain restaurants returned 30.6 percent. Indie retailers spent 27.1 percent locally on labor, 17.4 percent locally on procurement for resale, 3.1 percent on charitable giving, and 4.4 percent on procurement for internal use. As part of the Indie Impact Study Series ~2~, communities with active ABA members were able to engage directly with Civic Economics for a customized local study for a significantly reduced fee. As further incentive, ABA contributed 25 percent of the fee. Communities where a similar data analysis is underway include Bainbridge Island, Washington; Chicago, Illinois; Las Vegas, New Mexico; Louisville, Kentucky; Milwaukee, Wisconsin; Pleasanton, California; and Raleigh, North Carolina. Main StreeUShop Local News - Booksellina Staff Loain I Masthead I Contact Us I Copyright O 2012 American Booksellers Association. All Rights Reserved. Source URL: http•//news.bookweb.ora/news/study-finds-shopginq-local-generates-almost-four-times-economic-benefit 1 of 2 - 10/27/12 9:35 PM Study Finds Shopping Local Generates Almost Four Times the ... http://news.bookweb.org/prind8822 Links: [1J http://www.localfirst.org~mages/stories/SLC-Final-Impact-Study-Series.pdf [2] http://news.bookweb.org/news/aba-and-civic-economics-partner-indie-impact-study-series [3] http://www.kingsenglish.com/ 2 of 2 10/27/12 9:35 PM Four New Economic Studies Find Indies Have a Bigger Impact .' http://news.bookweb.org/print/8936 ~ ~1w.~. N k~ j ... 1 Published on Bookselling This Week(http://news.bookweb.orq) Home> Four New Economic Studies Find Indies Have a Bigger Impact ~~~~'~~D Four New Economic Studies Find Indies Have a Bigger Impact APB 1 1 2013 p~NINGDEPT. By Dave Grogan Created 10/25/2012 - 9:45am Recently released studies focusing on the economic impact of Indies in four different areas of the country have reached the same conclusion: Independent businesses return far more of their revenue to their local communities than do chains. In the four communities, indie retailers returned a total of at least 44 percent of all revenue back to their local economies. The studies —which looked at the impact of indie retailers and restaurants in Louisville, Kentucky; Milwaukee, Wisconsin; Ogden, Utah; and the Six Corners area of Chicago —were the final phase in the Indie Impact StudX Series ~,~, a nationwide research project conducted by Civic Economics in partnership with the American Booksellers Association. The project, which launched last fall, enabled communities with active ABA members to engage directly with Civic Economics for a customized local study for a significantly reduced fee. Ten studies were conducted and each was sponsored the community's local first associations and/or booksellers in each of the locations. "With 10 localized surveys of independent business completed, the findings are consistent with previous studies and among participating communities," said Dan Houston of Civic Economics. "In big cities and small towns and from coast to coast; independents produce strong local economic returns compared to their chain competitors. Everywhere we've looked, we as consumers have the opportunity to make a big difference in our local economies with small changes in our habits." • ANDERSOtt',tlttE H.iNeF:;L,,E ~. a. s '.: !LASYEGAS;MlA ! l~OUiSYlLf.~ '. '. ;it' - 'r~: y rs' .a ,~~A6.4'~a htll5`tAUKE~~ 39,9;`0 '. , ~N't1EC# -. __'d 'S`.'4, '. . FLFA54Ni0N .,. '. RALEtGA... d62:'~,~ .. K~'.3 i.k- Y SAL.TCAF4ECtTY -.....SIYC~Rt{~R~ ~s .............. ~s:s, ... _~~.1 _r ,._, `17~' The Louisville study iz~ sponsored by the Louisville Independent Business Alliance (LIBA) ~s~ and Carmichael's Bookstore ~o~ looked at 17 retailers and three restaurants, all independent and locally owned. Collectively, these retailers recirculate a total of 55.2 percent of all revenue to the local economy: 27.5 percent in profit and labor; 6.4 1 of 3 10/27/12 936 PM http://news.bookweb.org/prind8936 Four New Economic Studies Find Indies Have a Bigger Impact percent for internal use; 16.4 percent for the procurement for resale; and 4.9 percent in charitable giving. The Louisville study concluded that "a market shift of just 10 percent from chains to independents would retain an additional $416 million in the regional economy every year." "I frequently used data from the Austin ~5~, Andersonville ~s~, or Grand Rapids i~ studies when speaking to groups or the press, but now that. we are able to quote results based directly on data from our own community, I expect the `Buy Local' message to have even greater resonance in Louisville," said Carol Besse, co-owner of Carmichael's Bookstores and LIBA secretary. "It should be hard for anyone to ignore a figure like $416 million.... Carmichael's is grateful to the ABA for subsidizing this study —it's another example of how they supporting indie booksellers across the country." In Milwaukee, the study ~e~ looked at seven retailers and three restaurants, all independent and locally owned. Collectively, these retailers return a total of 44.1 percent of all revenue to the local economy,the study found. It also noted that a market shift of just 10 percent from chains to Indies would keep an additional $311 million in the regional economy every year. The Milwaukee study was sponsored by Local First Milwaukee ~s~ and Boswell Book Company ~,o~. Similarly, in the Ogden study ~~~~ sponsored by Buy Local First Ogden ~,z~, six retailers and seven restaurants, all locally owned and independent, recirculated just over 48 percent of ail revenue back to the local economy."A market shift of just 10 percent from chains to independents would retain an additional $121 million in the regional economy every year," the study concluded. And in Six Corners, Chicago, the study ~,s~ surveyed six retailers, all independent and locally owned, and found that these retailers return a total of nearly 71 percent of all revenue to the local economy. The Six Corners study was sponsored by the Six Corners Association ~,4~_~,4~and City Newsstand ~,s~. A 10 percent market shift in Six Corners, the study estimated, would retain an additional $2 billion in the regional economy every year. Industry Statistics Main StreeUShop Local News - Booksellina Staff Login I Masthead I Contact Us I Copyright O 2012 American Booksellers Association. All Rights Reserved. Source URL: http://news.bookweb.orq/news/four-new-economic-studies-find-Indies-have-bigqer-impact Links: [1] http://news.bookweb.org/news/aba-and-civic-economics-partner-indie-impact-study-series [2] http://civiceconomics.com/app/download/7043341104/Louisville.pdf [3] http:/lwww.keeplouisvilleweird.com/ [4] http://www.carmichaelsbookstore.com/ [5] http://civiceconomics.com/app/download/5841748704/Lamar Retail Analysis.pdf [6] http://civiceconomics.com/app/download/5841713404/AndersonvilleStudy.pdf [7] http://civiceconomics.com/app/download/5841633904/GR Local Works Summary.pdf [8] http://civiceconomics.comLapp/download(7043341504/Milwaukee.pdf [9] http://www.ourmilwaukee.net/ [10] http://boswell.indiebound.com/ [11] http://civiceconomics.com/app/download/7043341804/Ogden.pdf [12] http://www.localfirst.org/chapters/ogden-community [13] http://civiceconomics.com/app/download/7043344104/Six Corners.pdf [14] http://www.sixcorners.com/ 2 of 3 10/27/12 9:36 PM Four New Economic Studies Find Indies Have a Bigger Impact http://news.bookweb.org/print/8936 [15] http://www.citynewsstand.com/ 3 of 3 10/27/12 9:36 PM Study Finds Shopping Local Generates Almost Four-Times the ... http://news.bookweb.org/print/8822 ~I`tI`r ~~ Published on Bookse/ling This Week (http://news.bookweb.orq) ApR',~ Zo'~ Home > Study Finds Shopping Local Generates Almost Four Times the Economic Benefit PLANNING DEPT Study Finds Shopping Local Generates Almost Four Times the Economic Benefit By Dave Grogan Created 09/06/2012 - 2:01pm A new study conducted in Salt Lake City, Utah, has found that Indies generate almost four times as much economic benefit for the surrounding region as do chains. The study, "Indie Impact Study Series: A National Comparative Survey With the. American Booksellers Association: Salt Lake City. Utah ~,~," stressed that a market shift of just 10 percent from chains to independents would keep an additional $362 million in the regional economy every year. The study was conducted by the research firm Civic Economics and was sponsored by Local First Utah. The study is part of the Indie Impact Study Series ~2~, a nationwide research project, being conducted by Civic Economics in partnership with the American Booksellers Association. "Other studies across the country, from Austin to San Francisco to Chicago have been very helpful to all of us in our efforts to further the local movement," said Betsy Burton, co-chair of Local First Utah, co-owner of the The King's English Bookshop ~3~, and an ABA Board member."But having the actual figures from our home city is compelling to the public and to local government officials in a whole different way." Burton noted that the study's findings mean that "right here in Salt Lake ... we can say with pride, a dollar spent in a local business means a huge amount to all of us in economic terms." She also noted that the study has spurred media interest and has "already raised the profile of local businesses in a significant way. So has the idea that shifting a mere 10 percent of one's shopping to local can add nearly half a billion dollars to the city's economy." Local First Utah and The King's English collected surveys from a total of 22 independent businesses, including both retail and restaurant establishments in the community. The businesses provided information on revenue expended in five categories: profits paid out to local owners; wages paid to local workers; procurement of goods services for internal use; procurement of local goods for resale; and charitable giving within the community. Civic Economics then analyzed the data and compared it with four chain retail stores and three national restaurant chains. The findings were telling. Independent retailers returned an average of 52 percent of their revenue to the local economy, while the chain retailers recirculated only 13.6 percent. Local restaurants returned some 78.6 percent of revenue, while chain restaurants returned 30.6 percent. Indie retailers spent 27.1 percent locally on labor, 17.4 percent locally on procurement for resale, 3.1 percent on charitable giving, and 4.4 percent on procurement for internal use. As part of the Indie Impact Study Series ~z~, communities with active ABA members were able to engage directly with Civic Economics for a customized local study for a significantly reduced fee. As further incentive, ABA contributed 25 percent of the fee. Communities where a similar data analysis is underway include Bainbridge Island, Washington; Chicago, Illinois; Las Vegas, New Mexico; Louisville, Kentucky; Milwaukee, Wisconsin; Pleasanton, California; and Raleigh, North Carolina. Main StreeUShop Local News - Booksellina Staff Loain I Masthead I Contact Us I Copyright O 2012 American Booksellers Association. All Rights Reserved. Source URL: http://news.bookweb.ora/news/study-finds-sh000ina-local-generates-almost-four-times-economic-benefit 1 of 2 10/27/12 9:35 PM Study Finds Shopping Local Generates Almost Four Times the ... http://news.bookweb.org/prind8822 Links: [1] http://www.localfirst.org/images/stories/SLC-Final-Impact-Study-Series.pdf [2] http://news.bookweb.org/news/aba-and-civic-economics-partner-indie-impact-study-series [3] http://www.kingsenglish.com/ 2 of 2 10/27/12 9:35 PM