HomeMy WebLinkAboutAgenda Bill 4.C 06/07/2004CITY OF PETALUMA, CALIFORNIA
PE TALUMA COMMUNITY DEVELOPMENT COMMISSION
June /�ary
AGENDA BILL
A enda Title
Discussion and Action ;Adopting a, Resolution Approving the
Meeting Date:
June 7 2004
Petaluma Leakage & Sustainable Retail Strategy Study and
Authorizing the Implementation of the Recommended . Retail
Meeting Time 3:00 PM
Strategy
Catey,ory (check one) ❑ Consent Calendar ❑ Public Hearing ❑ New Business
Unfinished Business ❑ Presentation
Department
Director
Contact Person
Phone Number
ED& Redevelopment
Paul Marangella
Pawl Marangella
778 -45$1
Cost of Proposal $0
Account Number
NA
Amount Budgeted $0
Name of Fund:
NA
Attachments to Agenda - Packet Item
1. Resolution Adopting "Petaluma Leakage & .Sustainable. Retail Strategy Study"
2. Petaluma Leakage & Sustainable Retail Strategy Study
Summary Statement
In Ju y 2003, Thomas Consultants, a reputable retail= consulting firm, was hired to undertake a
comprehensive analysis of Petaluma.retai'l leakage and develop a strategy to reverse this trend. A draft
study was presented to the PCD'C on November 17, 2003. Subsequently, the study was put on the City's
web site for public review. Also, City staff and the consultant met with the Economic Development
Committee of the Chamber of Commerce to present the study and respond to their questions. The
Committee strongly supported the recommended strategy.
Since then, prospective retailers have expressed appreciation for the data contained in the study. For
instance, the recent transaction between Petaluma Schools and Regency Realty Inc. relative to the
acquisition of the Kenilworth School was strongly influenced by the; data and strategy contained in the
Study. In this way, the Study has already proved beneficial.
The purpose of this item is to approve the "Petaluma Leakage & Sustainable Retail, Strategy Study" and
authorize the City Manager to implement the recommended retail strategy.
Recommended PCDC' Action /Supp-ested Motion
It is recommended that the PCDC receive a presentation from Thomas Consultants on the "Petaluma
Leakage & Sustainable Retail Strategy Study" and adopt the attached resolution approving the study and
authorizing the City Manager to implement the recommended retail strategy.
Val
i ed b . Finance Director: Revi ed' t me : A rov Cit Mana er:
te: Date:
ate' -d
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Toda 's ate:
Revision !# and Date Revised:
File Code:
#
May 20, t004
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CITY OF PET ALUMA, ,CALIFORNIA
Petaluma Community Development Commission
June 7, 2004
AGENDA REPORT
FOR
DISCUSSION AND ACTION ADOPTING A RESOLUTION APPROVING THE PETALUMA
LEAKAGE & SUSTAINABLE RETAIL STRATEGY STUDY AND AUTHORIZING THE
IMPLEMENTATION OF THE RECOMMENDED RETAIL STRATEGY
1. EXECUTIVE SUMMARY
In July 2003, Thomas Consultants, a reputable retail- consulting firm, was hired to undertake a
comprehensive analysis of Petaluma -retail leakage and develop a strategy to reverse this trend. A draft
study was presented to the PCDC on November 17, 2003. Subsequently, the study was put on the City's
web site for public review. Also, City "staff and the consultant met with the Economic Development
Committee of the Chamber of ,Commerce to present the study and respond to their questions. The
Committee strongly supported the recommended strategy.
Since then, prospective retailers have expressed appreciation. for the data contained in the study. For
instance, the recent transaction between Petaluma Schools and Regency Realty Inc. relative to the
acquisition of the Kenilworth School was strongly influenced by the data and strategy contained in the
Study. In this way, the Study has already proved beneficial.
The purpose of this item is to approve the "Petaluma Leakage & Sustainable Retail Strategy Study" and
• authorize the City Manager to implement the recommended retail strategy.
2. BACKGROUND
"The Leakage & Sustainable Retail Strategy Study includes key components:
• Consumer Survey: A survey of 400 residents living in and around Petaluma assessed the
degree of retail sales outflow, consumer expenditure profile, and consumer preferences.
• Retail Sales Leakage Analysis: An analysis was made of taxable sales occurring within
Petaluma by major sales categories.
• Regional Retail Competition Analysis: An analysis was made of the current level of
competition for retail spending in the area from Corte Madera to Santa Rosa.
• Retail Square Footage. Inventory: An inventory of retail square footage in Petaluma was
undertaken, differentiating between downtown type retail. and shopping center retail.
• Retail Redevelopment `Potential': Retail clusters that have future commercial development
were ientified.
• Demographic -& Expenditure Profile: Demographic and spending habits of local residents
` were analyzed to determine the types of retail tenants with the most appeal.
• Retail Trends & Opportunities: Retail formats and types that are currently driving North
American retailing were identified.
• Overall Retail Opportunity & Positioning: A market share /capture rate methodology was
used to project the optimal retail mix and market positioning for each of Petaluma's retail
clusters.
• ® Mega Box Retail Market Analysis: An analysis of the feasibility of locating a Mega Box
operation in Petaluma was performed.
Y�
Based on components of the study, Thomas Consulting recommends the following next steps:
• Direct . that the Petaluma Draft General Plan support the retail uses recommended in t w ,
Study, by retail cluster.
{
• Coordinate the .development'of the Kenilworth School and Fairgrounds sites to provide retail`
uses.
• Prepare marketing materials to promote the "Petaluma Retail Opportunity" to major anchor
tenants:
• Solicit interest, 'from major anchor retail and entertainment tenants, as indicated in each retail
cluster recommeindation.
• Encourage the. redevelopment of the Golden Eagle Shopping Center and consider the
consolidation of the site with the area extending to the Petaluma Railroad' Depot.
• Collaborate with SMART to :solicit joint venture developer interest' -for redevelopment of the
vacant site adjacent to the Petaluma Depot.
3, A
A. Adopt the 'Study : - Under this alternative, the City' Manager would be authorized to implement the
strategy°inherent in the Study.
B. Amend the Study: Under this alternative, the City Manger would be directed to amend the Study
and its inherent strategy.
4. FINANCIAL IMPACTS :.
The Study identifies the need for 1.14 million square feet of additional,retail space ;in Petaluma. This
additional -space generate an estimated $2.5 million in additional sales taxes annually.
5. CONCLUSION •
Thomas Consultants has completed its analysis of retail leakage in Petaluma ands recommended a
strategy for eliminating the leakage and :creating sustainable retail uses. The. adoption of the Study will
provide the City Manager and staff with a useful tool for attracting retail development +appropriate to
Petaluma.
6. OUTCOMES OR PERFORMANCE MEASUREMENTS -THAT WILL IDENTIFY SUCCESS OR'COMPLETIC
The Leakage & Sustainable Retail Strategy Study•is complete and the recommended next steps are
irnplemented by July 1 2005
7. RECOIV MENDATION
Adopt. the attached resolution approving "The Leakage & .Sustainable Retail. Strategy Study" and
authorizing the City Manager to implement the recommended retail strategy.
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