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."
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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.
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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
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APA Metro Chapter Zoning Committee
Pratt Center
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May 29, Zoos
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~~~~
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al Purchasing Preferences
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APA Metro Chapter Zoning.Committee
Rratf Center
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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
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for Sr-~all B usiness Health Plans
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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
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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.~.
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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."
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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