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Alfred D. Lott, ICMA-CM, CPM City Manager SUBJECT

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Alfred D. Lott, ICMA-CM, CPM City Manager SUBJECT MEMORANDUM TO: City Council FROM: Alfred D. Lott, ICMA-CM, CPM City Manager SUBJECT: Status Report DATE: November 9, 2017 Status Report 1. Purchase of Road Deicing Salt The Public Works Department has located a contract for the purchase of road deicing salt with Montgomery County (IFB# 1041647) through two (2) vendors, upon which we will be able to piggyback. The current price for salt with Morton Salt, Inc. (Primary Vendor) is $68.12/ton and we intend to purchase up to 1,460 tons as needed this winter. We will sign a contract and issue a purchase order to Morton Salt, Inc. in the amount of $99,455.20. This is within the amount budgeted for FY18 in the Public Works Streets Operating Supplies Account. The current price for salt with Eastern Salt Co., Inc. (Secondary Vendor) is $77.10/ton. We will sign a contract and issue a purchase order to Eastern Salt Co., Inc. in the amount of $10,000. As provided for in the Montgomery County Contract, the Secondary Vendor would serve only as a backup salt supplier should the Primary Vendor be unable to fulfill a required order. As provided in Section 62 of the City Charter, this will serve as the required seven (7) day notice of intent to purchase. 2. Economic Development Committee (EDC)) The EDC held their regular meeting Wednesday and heard a briefing on the Prince George’s County Competitive Retail Market Strategic Action Plan given by Derick Berlage from MNCPPC and Larry Hentz from the County EDC. One of the ways the Plan is implemented is through a targeted effort to recruit grocery stores, high-quality restaurants, and women’s apparel stores. A copy of the entire Plan can be downloaded from here: https://issuu.com/mncppc/docs/crmsap__web1. The briefing slides are attached. Status Report 2 November 9, 2017 3. State Consolidated Transportation Program Meeting Last Thursday, Deputy Transportation Secretary Jim Ports briefed elected officials in Prince George’s County on the State’s Draft FY 2018-2023 Consolidated Transportation Program (CTP). A copy of the Prince George’s portion is attached. With the exception of engineering funding for MD 197, all of the Bowie road projects continue on hold. Also attached is a copy of the County Executive/County Council Transportation Priority List which was issued last week. There is really no change from the previous list, except that the County wanted to keep the Greenbelt Beltway interchange as their #1 priority in the event that the FBI headquarters opportunity comes back and because the same site is being promoted by the County for the Amazon headquarters search. That pushes all of the other projects down a notch on the list. MD 197 went from #3 to #4, MD 450 went from #5 to #6 and the US 301/MD 197 interchange went from #9 to #10. The meeting was attended by several County Council Members, including Council Member Todd Turner (who chairs the Transportation, Housing and Environment Committee) and several State Delegates, including Delegate Joe Vallario who spoke in support of construction funding for MD 197. ADL/lfr Attachments Prince George’s County Competitive Retail Market Strategic Action Plan Derick Berlage, Prince George’s County Planning Department Larry Hentz, Prince George’s County Economic Development Corp. November 8, 2017 AGENDA Project Goals and Objectives Retail Market Findings Key Opportunities Strategic Action Plan Overview Marketing Strategy 2 GOALS AND OBJECTIVES 3 STRATEGIC ACTION PLAN ANALYTICAL COMPONENTS Prince George’s County Retail Market Strategic Action Plan is the culmination of the Competitive Retail Market Analysis. Phase 1 Phase 2 ASSESS AND HOW TO PRIORITIZE EFFECT CHANGE Retail Market Analysis, Consumer Five-Year Strategic Action Plan Segmentation, Performance Outlook Identify Goals Kickoff and Team Coordination Policy and Strategy Recommendations Market Analysis Demand Analysis Market Segmentation and Psychographics Marketing Strategy Retail Market Performance Outlook Targeted Outreach Marketing and Branding Retail Opportunity Analysis High-End/Luxury Retail Consumer Presentation of Findings Marketability Analysis Case Study Analysis Redevelopment and Reuse Analysis 4 INTRODUCTION The Competitive Retail Market Strategic Action Plan presents implementation strategies to help the County capitalize on opportunities to improve the retail landscape through: Diversification Development/Redevelopment Contraction Transformation of Targeted Retail/Commercial Centers into Alternative Uses or Vibrant Mixed Use Centers 5 KEY RETAIL MARKET FINDINGS 6 REGION EXTREMELY AFFLUENT BUT COUNTY HAS STRONG UNDERSERVED MIDDLE 1% 1% 3% 7% 7% 10% 5% 4% 2% 2% 22% 8% 7% 4% 6% 12% 13% 11% 14% 9% Prince George’s 32% 9% top 30-40% of 13% consumers likely 13% 33% underserved by available retail in 27% County 11% 32% 22% 21% 19% Region and 20% nearby counties have 30-40% of 31% 21% consumers in top 25% spending tiers; 33% County only has 27% 11% 22% 11% 8% 9% 3% Washington- Prince George's Montgomery County Howard County Anne Arundel County Fairfax County Baltimore Region County First Second Third Fourth Fifth Sixth Seventh 7 OVERVIEW OF COUNTY RETAIL INVENTORY Surveyed 241 Shopping Centers & 10 Main Streets for: Quality of Tenants, Building, Vacancy, Surrounding Land Uses, and Other Qualitative and Quantitative Factors. Shopping Centers by Type Shopping Centers by Trade Area 0.4% 140 1.2% 2.1% Strip/Convenience 4.1% 120 116 Neighborhood 100 9.5% Community 80 46.5% Power 60 59 Lifestyle 36.1% 40 Outlet 31 33 20 Regional/Super- 2 Regional 0 North Market Central Inside Central Outside Southwest Southeast 495 Market 495 Market Market Market 8 COUNTY RETAIL ISSUES PERTAIN TO QUALITY OF RETAIL MORE SO THAN QUANTITY OF RETAIL Quantity and sales actually on or close to par with other local jurisdictions, but. Retail Square Feet per Person Retail Sales per Square Foot of Retail 40 34 $450 35 $421 29 $400 30 28 26 27 $346 25 $350 $335 25 $309 National Average 23 $300 20 $250 15 $200 10 $150 5 $100 0 County George's Prince County Montgomery County Arundel Anne County Howard County Fairfax MSA Baltimore-Washington $50 $0 Prince Montgomery Anne Arundel Howard County George's County County County 9 ALMOST 50% OF CENTERS NEED SIGNIFICANT REPAIR VERY FEW ARE COMPLETELY VACANT OR RUN DOWN Shopping center distribution by center quality doesn’t align with spending power. 140 120 117 100 Centers g 80 69 Shoppin f 60 o r 47 40 Numbe 20 8 0 A B C F/Defunct Rating of Center Quality 10 NEW RETAIL CENTERS CANNIBALIZING TENANTS FROM OLDER CENTERS Beltway Power Center Plaza Mall Regional Mall Tenant In-Line Anchor Tenant Fitness Center Tenant Space in Anchor Space Strip Center Community Tenant Center Strip Tenants in Community Space 11 UNMET RETAIL DEMAND By 2020: Demand will Support 24.1 million square feet By 2025: Demand will Support 25.6 million square feet Distribution of Demand by Consumer Market Gap Between Existing Retail and Supply 2014 2014 $9.0 9% $8.6 Billions $8.5 Sales and 12% Demand $8.0 Gap = $1.4B 5% $7.5 73% $7.2 $7.0 $6.5 Households Non-Resident Employees Total Retail Sales Generated incl. Estimated Grocery Visitors Outside Capture Total Retail Demand 12 LOCATION MARKETABILITY • Median Income • Household Density • Education Levels Criteria Median Qualification Income Density Education % Most Favorable Conditions $100,000 5,000 60% Favorable, Lower Density $100,000 2,000 60% Average Conditions $75,000 2,000 40% Average, Lower Density $75,000 1,500 30% Average, Lowest Density $75,000 1,000 30% Below Average Conditions $60,000 400 30% 13 SEVEN CASE STUDIES SHOW REUSE AND REDEVELOPMENT POSSIBILITIES Stronger market potential Case Studies • Iverson Mall • Dodge Plaza • Riggs Plaza Shopping Center conditions • University Place conditions site e • University Plaza West sit g • Great Eastern Plaza • Andrews Manor Challenging Promisin • Upper Marlboro Main Street • Potomac Village Weaker market potential 14 KEY OPPORTUNITIES & STRATEGIC ACTION PLAN 15 STRATEGIC ACTION PLAN OVERVIEW Key Components 6 key Strategic Actions 26 Sub-actions Retail Redevelopment Tools Incentives Best Practices Strategic Actions and Sub-actions Phasing Over 5-year Timeframe Key Lead Agency and Partners Cost and Impact Metrics 16 STRATEGIC ACTION PLAN OVERVIEW STRATEGIC ACTIONS IMMEDIATE YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 1.1 Create and fill retail director position 1.2 Build strategic retail partnerships 1.3 Develop an interactive economic development toolbox 2.1 Coordinate development policies, planning, and investments 2.2 Focus on Areas with existing strong marketability 2.3 Coordinate land use with retail goals in zoningprocess 2.4 Review high density zoning and locations 2.5 Leverage or request resources from regional agencies 2.6 Evaluate and identify land uses that would RepurposeRetail 3 Designate target areas for high‐quality retail attraction Legend 3.1 Evaluate target area vicinity Lead Agency 3.2 Fund needed transportation improvements Economic Development Corporation (EDC) 3.3 Identify and fill gaps in organizations [Includes Office of the County Executive] 3.4 Provide full support for existing small area plans in target areas Retail Implementation Director (Retail Director) 4 Create long lasting, high value places over the long term 4.1 Pursue high‐endtenants. Prince George’s County Council (CC) 4.2 Streamline the entitlement process for high priority retail sites M-NCPPC Prince George’s County Planning 4.3 Develop and implement creative strategies Department (Planning) 4.4 Capitalize on emerging growth areas Redevelopment Authority (RA) 4.5 Address
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