2011030711 - BAE Urban Economics - Market Study and Business Strategy for the North 40toW x nF MEETING DATE: 3/7111
'> ITEM NO:
!p - Cpj pS COUNCIL /AGENCY AGENDA REPORT
DATE: March 2, 2011
TO: MAYOR AND TOWN COUNCIL/
CHAIR AND MEMBERS OF THE REDEVELOPMENT AGENC
FROM: GREG LARSON, TOWN MANAGER/EXECUTIVE DIREC
SUBJECT: AUTHORIZE THE TOWN MANAGER TO EXECUTE A
CONSULTANT AGREEMENT IN THE AMOUNT OF $66,235 WITH
BAE URBAN ECONOMICS FOR PREPARATION OF A MARKE
STUDY AND BUSINESS DEVELOPMENT STRATEGY FOR THE
NORTH 40.
RECOMMENDATION
Authorize the Town Manager to execute a consultant agreement in the amount of $66,235
with BAE Urban Economics for preparation of a Market Study and Business
Development Strategy focusing on the North 40, Los Gatos Boulevard, Downtown, and
other neighborhood commercial centers Town wide.
BACKGROUND
On December 3, 2010, staff issued a Request For Proposal (RFP) to conduct a
comprehensive market study and business development strategy for the North 40
property. The study will also cover other commercial districts including the Downtown,
Los Gatos Boulevard, and smaller neighborhood commercial districts that serve Los
Gatos residents. The goals of this study are to:
1. Understand the business make up of each district including its market
characteristics and trade area and its strengths and weaknesses;
2. Determine what services and goods are leaking from the community overall;
3. Determine appropriate commercial development that would support the defined
trade areas and identify where it should be targeted; and
4. Address non - compete challenges between existing commercial districts and
proposed uses for the North 40 and identify approaches for mitigating these
challenges.
PREPARED BY : Jessica von Borek, Economic Vitality Manager
Reviewed by: t ) Assistant Town Manager /Deputy Director ( Town Attorney /General Counsel
Clerk Administrator /Secretary F inance Comm ty Development
PAGE �
MAYOR AND TOWN COUNCIL
SUBJECT: MARKE STUDY AND BUSINESS DEVELOPMENT STRATEGY —
BAE URBAN ECONOMICS AGREEMENT.
MARCH 7, 2011
The findings generated by the study will be reviewed by staff and coordinated with the
work completed by the specific plan design team. This collaboration will ensure that
policies and design requirements considered for the specific plan can be supported by
market study data.
DISCUSSION:
On January 18, 2011, the Town received six responses to the RFP. Staff interviewed the
short listed submittal teams on Wednesday February 9, 2011. The review panel
unanimously concluded that BAE Urban Economics is the best qualified to meet the
goals of the proposed study.
Scone of Work
The Market Study and Business Development Strategy consists of three primary Tasks.
Task lis the preparation of an existing conditions analysis and market assessment of
existing economic, demographic, and real estate conditions and trends for the North 40,
Los Gatos Boulevard, Downtown, and other neighborhood commercial areas throughout
town. This analysis will also include a retail sales attraction and spending leakage study;
a detailed investigation and analysis of where, what, and how many goods are purchased
in our community. The analysis will include an inventory of business type, consumer
profile, and trend analysis for the commercial areas identified above.
Task 2 will evaluate opportunities and identify incentives consistent with the General
Plan and other Town goals /policies for the North 40 property. The data and results in
Task 1 will be used to develop general and site specific measures to attract appropriate
and complementary uses for the North 40. This task will also involve the analysis of
optimal uses for the North 40 and recommendations for addressing non- cornpete
concerns as they relate to existing uses in the Downtown and along Los Gatos Boulevard.
Task 3 is the submittal of a final report to staff that will include: 1) data and results
gathered in tasks 1 -2; 2) clearly defined opportunities /challenges; and 3) findings and
recommendations. Staff anticipates the scope of the Market Study and Business
Development Strategy to be completed within 4 months of the contract approval.
Qualifications of BAE Urban Economics
BAE Urban Economics has provided real estate economics and development advisory
services to clients throughout the U.S. since 1986. BAE has completed over 1,700
assignments encompassing market and financial feasibility studies, strategic planning,
revitalization, public - private transactions, public financing, fiscal and economic impacts
PAGE 3
MAYOR AND TOWN COUNCIL
SUBJECT: MARKE STUDY AND BUSINESS DEVELOPMENT STRATEGY —
BAE URBAN ECONOMICS AGREEMENT.
MARCH 7, 2011
analyses, and development advisory services. They have extensive work experience in
but not limited to:
• Market and Financial Feasibility
• Economic Development Strategies /Studies
• Downtown & District Revitalization
• Economic Benefits & Fiscal Impact
• Sustainable Development and TOD
BAE's work quality has been recognized by the American Planning Association (APA)
and the Congress for New Urbanism. They have recently completed economic studies in
Menlo Park, Seaside, and Hillsdale.
ENVIRONMENTAL ASSESSMENT
Is not a project defined under CEQA, and no further action is required.
FISCAL IMPACT
The cost for preparation of the Market Study and Business Development Strategy is
$66,235 and will be funded through three sources: 1) General Plan Update Deposit
Account; 2) Redevelopment Agency Funds; and 3) Funds allocated by Grosvenor
Americas.
Distribution:
Raymond Kennedy, BAE Urban Economics, 1285 66 Street, 2 n Floor, Emeryville, CA 94608
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