Citywide Marketing Study

Mount Vernon, New York Demographic, Market, and Development Study

Prepared November 04, 2011

This study was prepared for the City of Mount Vernon and funded by a grant from the New York State Department of State provided under Title 3 of the Environmental Protection Fund. Outline

Pg 2. Executive Summary and Objectives Pg 6. Mount Vernon Market Study Overview The Opportunity The Challenge Pg 24. Demographic Overview Mount Vernon in Comparison to Neighboring Areas Pg 32. Economic and Market Snapshot Economic Overview Real Estate Overview Pg 52. Retail Gap Analysis Identification of Unmet Potential Pg 62. Trade Areas Downtown Mount Vernon in Comparison to Similar Urban Retail Districts Pg 77. Development Opportunities, Transit-Oriented Station Area Soft Site Analysis Market Support for Development Pg 108. Taking Action Key Recommendations The Experience Pg 127. Appendix

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 1 Outline

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 2 Executive Summary

. Mount Vernon possesses significant assets that would appeal to developers and investors . It has higher household incomes than similar urban areas in the New York region . It is one of the most densely populated cities in the United States . It is strategically situated close to New York City, and has three Metro North Stations and good highway access . There are multiple opportunities for Transit Oriented Development in the vicinity of Mount Vernon East and Mount Vernon West . Mount Vernon’s Downtown retail district currently underperforms comparable areas . Mount Vernon lacks a significant presence of national retailers (who hold credit leases) in its Downtown retail district . Storefront vacancies are common in the Downtown area . Mount Vernon has a retail gap of over $205M in unmet spending potential that could be addressed through a strategically focused retail program Downtown . This study was prepared for the New York State Department of State with funds provided under Title 3 of the Environmental Protection Fund.

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 3 Objective: Identify the “first moves” for development in the Mount Vernon market that will achieve desired long-term results

Successfully leverage City’s assets

Achieve increased diversity of residential and commercial environments within the City

Increase retail activity

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 4 HR&A’s Analytic Process

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 5 Outline

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 6 The Opportunity Mount Vernon offers a suite of advantages to development

Transportation access Proximity to NYC & Westchester communities Population density Residential and commercial center Authentic urban fabric Cultural identity Redevelopment opportunities

Source: ESRI; HR&A

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 7 Transportation Access Mount Vernon has excellent highway, rail, and bus transportation

. Destinations in New York City and Westchester County are easily accessible from Mount Vernon

. Road: The Bronx River Parkway, The Hutchinson River Parkway, The Cross County Parkway; I-87 and I- 95 less than one mile from city border

. Rail: Three MetroNorth Stations – Mount Vernon East, Mount Vernon West, and Fleetwood; The 2 & 5 MTA subway trains are within a 10-minute walk from the Mount Vernon border

. Bus: 10 Bee-Line Bus routes serve the City Source: Mount Vernon Draft Comprehensive Plan

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 8 Proximity to New York City Commute time to Midtown Manhattan is less than 25 minutes

60 60 60

30 30 30 Mount Vernon East: Mount Vernon West: Fleetwood: 23 minutes 22 minutes 24 minutes

Estimated non-rush hour drive time: 27 Minutes Estimated rush hour drive time: 40 Minutes

Source: ESRI; HR&A

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 9 Proximity to Westchester Communities Mount Vernon is close to some of the country’s wealthiest communities

Source: Mount Vernon Comprehensive Plan Working Draft

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 10 Population Density Mount Vernon is one of the most densely populated cities in the country

Rank Amongst Cities with 2000 Population City State 2000 Population > 50,000 per Square Mile 1 Union City New Jersey 52,972 2 New York New York 26,401 3 Passaic New Jersey 21,803 4 Huntington Park California 20,251 5 Somerville Massachusetts 18,867 6 East Orange New Jersey 17,775 7 Paterson New Jersey 17,674 8 San Francisco California 16,633 9 Jersey City New Jersey 16,093 10 Cambridge Massachusetts 15,765 11 Mount Vernon New York 15,688 12 Hempstead New York 15,365 . . . 28 Newark New Jersey 11,494 . . . 31 Philadelphia Pennsylvania 11,233 . . . 33 Trenton New Jersey 11,153 . . . 35 Bayonne New Jersey 10,991 36 Yonkers New York 10,847 . . . 45 Elizabeth New Jersey 9,865 . . . 80 New Rochelle New York 6,973 . . . 127 White Plains New York 5,415 . . . HR&A Advisors, Inc. 295 StamfordMount Connecticut Vernon Demographic,3,102 Market, and Development Study| 11

Source: Demographia; U.S. Census Bureau Residential and Commercial Center Mount Vernon is not merely a bedroom community

Note: Total population reflects 2009 population as estimated by the U.S. Census’s American Community Survey Source: Mount Vernon Comprehensive Plan Working Draft

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 1212 The authentic character and urban fabric of the Gramatan Ave. retail corridor is a key advantage that will rise in importance as the market continues to rediscover walkable urban places

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 1313 Opportunity to Build Upon Cultural Heritage to Attract Tourists Mount Vernon could better position itself to attract tourists

. Mount Vernon does not have an established presence on trip-planning websites, and Westchester County’s Tourism materials pay little heed to the City.

. Mount Vernon could do more to highlight the City’s rich cultural heritage in music and entertainment.

. St. Paul’s Church National Historic Site could be a catalyst for other tourist activity.

. Mount Vernon’s lack of hotels and catering facilities is a constraint on attracting visitors. Trip Planning Websites Westchester Tourism Map

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 14 Cultural Heritage Mount Vernon has been the home of many American Icons

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 1515 Redevelopment Opportunities Transit-oriented development is the City’s key development opportunity

. Transit-oriented development (TOD) on underutilized properties adjacent to Mount Vernon’s MetroNorth stations can capture demand for residential, office, and retail development

. TOD can generate critical mass catalyzing further development in the neighborhood

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 16 The Opportunity Resident and worker retail spending potential is significant

Total: $475million

* Note: Excludes workers who also live in Mount Vernon to avoid double-counting Source: ESRI; BLS; ICSC; ULI; HR&A Analysis

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 1717 The Opportunity 40% of resident and worker spending occurs outside Mount Vernon…

$475 Million: $285 Million: Resident & Retail Worker Spending Spending in Potential Mount Vernon

Source: ESRI; BLS; ICSC; ULI; HR&A Analysis

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 1818 The Opportunity …Resulting in substantial unmet retail potential

$205 Million: Untapped Retail Potential in Mount Vernon

Note: Untapped Retail Potential is greater than the difference between Spending Potential and Retail Spending highlighted on the previous page because categories where Retail Spending exceeds Spending Potential are categorized as having 0 unmet potential rather than negative unmet potential Source: ESRI; BLS; ICSC; ULI; HR&A Analysis

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 1919 The Challenge Mount Vernon’s potential is constrained by several factors

. High Barriers to Entry for Business: . Scattered existing ownership patterns make site assembly difficult . City perceived as having unpredictable business climate . Limited city resources dedicated to economic development . Lack of coordinated business community efforts dedicated to economic growth . Perception of crime is a deterrent . Conspicuous clusters of disinvestment damage the public realm . Regional malls outside City sap ability for retail to compete . Parking locations not convenient for retail activity

Taking strategic action to overcome these barriers will produce significant advantages for the City

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 20 The Challenge Vacancies and disinvestment hinder development prospects

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 2121 The Challenge High Vacancies observed amongst 250 storefronts surveyed Downtown

Existing Retailer Inventory

Vacant 27% Convenience 13% Other 10% F&B (takeout) 10% Apparel 8% FIRE 7% F&B (sit-in) 5% Personal Care 5% Accessories 5% Grocery 5% Electronics 4% Pharmacy 2% Hardware 1% Travel 1%

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 22 The Challenge Shopping centers proximate to the City present formidable competition

Mount Vernon, Sandford Blvd Shopping Center

Note: Points represent regional shopping centers with at least 200,000 SF of leasable space Source: CoStar

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 2323 Outline

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 24 Demographic Trends Map of Mount Vernon and comparison areas

South Westchester County

City of Mount Vernon

Bronx Community Board District 12

Source: ESRI; HR&A

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 25 Demographic Trends Key demographic indicators for Mount Vernon and comparison areas

City of Mount South Westchester Bronx Community Vernon County* Board District 12*

Population (2010): 69,778 372,304 157,011

Land Area (sq. miles): 4.4 53.8 5.5

Pop. Density (per sq. mile): 15,859 6,920 28,547

Households (2010): 26,054 138,113 55,519

Avg. Household Income (2010): $71,542 $106,472 $61,508 * Includes: Bronxville, * Includes: Edenwald, Eastchester, Larchmont, Wakefield, Mamaroneck (Town and Williamsbridge, Village), New Rochelle, Woodlawn, Fish Bay, Pelham, Pelham Manor, Eastchester, Olinville, and Rye City, Tuckahoe, and Baychester

Note: All socioeconomic data in this section is based upon ESRI estimates for 2010 and may not align Yonkers with U.S. Census data Source: ESRI; HR&A

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 26 Key Demographic Indicators – Mount Vernon Population aged 20-44, 2010

A higher proportion of Mount Vernon residents are in the key retail spending 20-44 age bracket than are residents elsewhere in South Westchester

Source: ESRI; HR&A

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 27 Key Demographic Indicators – Mount Vernon Average household income, 2010

Average household incomes in Mount Vernon, while lower than those elsewhere in South Westchester, are higher than those in the Bronx Community Board District 12

Source: ESRI; HR&A

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 28 Key Demographic Indicators – Mount Vernon Annualized household income growth, 2000-2010

Average household incomes grew faster in Mount Vernon than elsewhere in South Westchester over the period 2000-2010

Source: ESRI; HR&A

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 29 Key Demographic Indicators – Mount Vernon Unemployment rate, 2010

Mount Vernon’s unemployment rate was 10.8% in 2010.

Source: ESRI; HR&A

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 30 Key Demographic Indicators – Mount Vernon Educational attainment, 2010

Nearly 30% of adult Mount Vernon residents possess a four-year college degree

Source: ESRI; HR&A

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 31 Outline

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 32 Economic Overview Employment change in primary industries

. Mount Vernon’s largest industries are Construction, Retail Trade, Health Care, Manufacturing, and Education. Of these, Retail Trade grew the fastest over the period 2002-2009, with a 69% growth rate.

. Some of the fastest growing industries over the period – Arts & Entertainment, Information, and Professional Services – are industries often associated with the creative, knowledge-based economy

Total Employment Employment Change 2002 - 2009 Industry 2009 Numerical Percent Construction 3,567 496 16% Retail Trade 2,932 1,194 69% Health Care and Social Assistance 2,780 ‐540 ‐16% Manufacturing 2,630 ‐1,074 ‐29% Educational Services 2,118 273 15% Public Administration 1,354 404 43% Wholesale Trade 1,098 ‐450 ‐29% Transportation and Warehousing 846 ‐289 ‐25% Administration & Support, Waste Management and Remediation 845 ‐458 ‐35% Accommodation and Food Services 808 435 117% Other Services (excluding Public Administration) 725 97 15% Professional, Scientific, and Technical Services 608 242 66% Real Estate and Rental and Leasing 466 ‐12 ‐3% Finance and Insurance 457 ‐11 ‐2% Information 260 136 110% Arts, Entertainment, and Recreation 258 194 303% Source: US Census Bureau; HR&A Advisors Analysis Note: Includes Industries with >250 employees in Mount Vernon in 2009

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 33 Economic Overview Comparison with Westchester County

. Examining employment change by industry in Mount Vernon in the context of Westchester County allows for a more nuanced perspective on how competitive Mount Vernon’s economy has proven in a regional context.

. Many industries – Arts & Entertainment, Information, Retail Trade, Professional Services, and Public Administration – grew in Mount Vernon despite declining in Westchester County, testifying to the City’s economic competitiveness.

Employment Change 2002 - 2009 Industry Mount Vernon Westchester County Difference Between Areas Arts, Entertainment, and Recreation 303% ‐11% 314% Information 110% ‐25% 134% Accommodation and Food Services 117% 5% 112% Retail Trade 69% ‐7% 76% Professional, Scientific, and Technical Services 66% ‐3% 69% Public Administration 43% ‐10% 52% Construction 16% 3% 13% Other Services (excluding Public Administration) 15% 6% 9% Finance and Insurance ‐2% ‐5% 3% Educational Services 15% 14% 1% Wholesale Trade ‐29% ‐19% ‐10% Real Estate and Rental and Leasing ‐3% 10% ‐13% Manufacturing ‐29% ‐15% ‐14% Transportation and Warehousing ‐25% ‐11% ‐14% Administration & Support, Waste Management and Remediation ‐35% ‐18% ‐17% Health Care and Social Assistance ‐16% 15% ‐31% Source: US Census Bureau; HR&A Advisors Analysis

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 34 Economic Overview Where Mount Vernon Residents Work

. Approximately one third of Mount Vernon residents took public transportation or walked to work in 2010. It is likely many of these residents are among the over half of employed City residents that work in either New York City or Mount Vernon, as shown below.

Employees who live Percent of Employed City in Mount Vernon Mount Vernon Residents New York, NY 11,090 38.2% Mount Vernon, NY 3,790 13.1% White Plains, NY 1,869 6.4% Yonkers, NY 1,565 5.4% New Rochelle, NY 1,236 4.3% Harrison, NY 454 1.6% Bronxville, NY 302 1.0% Eastchester, NY 272 0.9% Stamford, CT 260 0.9% Mamaroneck 255 0.9% Village, NY All Other Places 7,943 27.4%

Source: US Census Bureau; ESRI

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 35 Commercial Office Real Estate Market Overview

. The total rentable building area in the City is about 1.43 million square feet, with little new inventory over the past five years.

. Mount Vernon has experienced positive net absorption of commercial office space for the past three quarters, but overall net absorption over the past five years was -9,000 square feet.

. In Q1 2011, the average full-service rent was $18.20, lower than in White Plains ($27.65) but higher than in Yonkers ($16.14).

Source: CoStar

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 3636 Commercial Real Estate Market Recently completed commercial renovations

Roosevelt Square Professional Building

South Street Lofts

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 37 New Office Development South Street Lofts – 31 South Street

. Building originally built in 1920 and renovated in 2007

. Offers attractive loft office space

. Rentable Building Area: 54,000 SF, with about 50% vacancy

. Average rent: $19.46

. Three phases have been leased, and fourth phase is now ready for occupancy

Source: Mount Vernon Today; CoStar

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 38 New Office Development Roosevelt Square Professional Building – 11 West Prospect Ave.

. Renovated space opened earlier this year

. Provides flexible space solutions to for small businesses, including administrative support, conference rooms, and telecommunication services

. Rentable Building Area: 17,000 SF

. Renovation represents $3.5 million investment

Source: Mount Vernon Today; CoStar

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 39 Residential Real Estate Market Overview

. According to Zillow, the average value of a home in Mount Vernon is $365,000, 8% less than one year ago. The housing market in Mount Vernon peaked in October, 2007, when average home values were $510,000.

. The rental market has been stronger in recent months. The average rental price in Mount Vernon is $1,450, up 25% from one year ago.

. In 2009, about 63% of Mount Vernon’s 25,547 households were renters.

. There has been limited residential building activity in recent years, although the Horizon at Fleetwood and planned Atlantic Development Group projects represent new investment.

Source: Zillow; US Census Bureau; HUD State of the Cities Data Systems

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 4040 Residential Real Estate Market Foreclosures are a problem

. Mount Vernon had the highest rate of foreclosure filings of any community in South Westchester County in June, 2011. It’s foreclosure filing rate was also higher than that of The Bronx.

. Mount Vernon did have a lower foreclosure rate than the United States as a whole, however (US rate was 0.16% in June, 2011).

June 2011 Number June 2011 Rate of Foreclosure Place of Foreclosures (% of all housing units entering foreclosure) Mount Vernon, NY 23 0.08% New Rochelle, NY 13 0.05% Pelham 2 0.05% Yonkers, NY 31 0.04% The Bronx, NY 210 0.04% Rye, NY 2 0.03% Bronxville, NY 3 0.03% Mamaroneck, NY 2 0.03%

Source: RealtyTrac

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 4141 Residential Real Estate Market Few residential starts in the last decade

Residential Building Permits Issued, 2000 - 2010

Source: HUD State of the Cities Data Systems

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 42 Residential Real Estate Market Recently completed / proposed residential developments

The Horizon at Atlantic Fleetwood Development Project

The Sixty at West First Street

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 43 New Residential Development The Horizon at Fleetwood – 550 Locust St

. Opening in 2011

. 70 market-rate rentals

. Originally scheduled to open in 2009, the development was delayed by the recession. The building was sold in bankruptcy auction to the Petro Real Estate Development Group and Glenmark Partners in 2010.

. Targeting young professionals working in Manhattan and White Plains, and empty nesters

. Up-market amenities include fitness center, outdoor patio, concierge, library, and rooftop terrace

Source: New York Times; Mount Vernon Today

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 44 New Residential Development The Sixty at West First Street – 60 West First Street

. Opening in 2011

. Seven story property with 43 apartments (26 two-bedrooms and 17 one-bedrooms)

. Designed as affordable workforce housing for residents earning 50-60% of area median income

. Amenities include community space, security features, and a private parking garage

. The project cost $16 million, and is being developed by a partnership led by Trinity Associates, LLC

Source: New York Times

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 45 New Residential Development Atlantic Development Group Property

. Phase One construction to began Early 2012 . Consists of three buildings: . 14-story rental building with 159 “work-force” housing units . 10-story condo with 131 market- rate units . 8-story building with 60 senior units . The development includes 20,000 SF of retail space and a garage for 220 vehicles . The project costs $120 million, and phase one is expected to break ground this year . Amenities include in-unit Washer/Dryer, fitness center, cinema room, and recreational rooftop areas Source: New York Times

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 46 Retail Real Estate Market Overview

. Overall retail inventory in the City is about 3.42 million square feet.

. The retail vacancy rate in Mount Vernon has steadily declined since Q2 2009, falling to 3% by Q1 2011 due to leasing by large-scale retailers on the City’s periphery. Overall net absorption has been strongly positive over the past five years, at 172,000 square feet.

. In Q1 2011, the average rent was $23.55 triple net, lower than in White Plains ($29.04) and Yonkers ($26.49)

. Recent retail developments include the CVS in Fleetwood (opened in 2009), and the CVS on Sandford Boulevard that broke ground this year.

Source: CoStar

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 4747 Retail Market Retail Districts in Mount Vernon

District Character Key Stores / Restaurants

Pathmark, Foodtown, Rainbow, Rite Aid, Payless Shoes, Radio Downtown / Gramatan Ave Urban Ground Floor Shack, Pretty Girl, House of Soul, Johnny’s Pizzeria, Papa Johns Target, Best Buy, Stop and Shop, T.J. Maxx, Staples, Bed Bath and Sandford Boulevard Strip Commercial Beyond, Petco, Famous Footware, CVS, KFC Duane Reade, CVS, Harvest Market, The Bayou Restaurant, Fleetwood Urban Ground Floor Spring Asian Cuisine, Joe’s Fleetwood Pizzeria

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 4848 Retail Market Downtown has a modest number of national retailers

Allstate Domino’s HSBC MetroPCS H&R Block Dunkin’ Donuts Subway McDonald’s Chase Capital One Payless Shoes Rent-A-Center

Jackson Hewitt Foot Locker

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 49 Retail Market Retail job growth owes to Big Box retailers

Mount Vernon Shopping Center

. Much of Mount Vernon’s retail employment growth likely owes to the Mount Vernon Shopping Center, a 290,000 SF shopping center that opened in 2005. Source: CoStar; HR&A

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 50 Retail Real Estate Market Sample listings from brokers

. 520 Gramatan Ave. . 11 Gramatan Ave. . 205 East 3rd Street

. 2,940 rsf . 2,000 rsf . 5,000 rsf

. Asking $35 /rsf + taxes . Asking $27 /rsf triple net . Asking $18 /rsf triple net

. Close to Fleetwood Station . In heart of Downtown . Close to Mount Vernon East Station

Source: Admiral Realty; LoopNet

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 51 Outline

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 52 Retail Leakage and Unmet Potential Mount Vernon residents & workers are the key sources of retail spending

Total: $475million

* Note: Excludes workers who also live in Mount Vernon to avoid double-counting Source: ESRI; BLS; ICSC; ULI; HR&A Analysis

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 5353 Retail Leakage and Unmet Potential 40% of resident and worker spending occurs outside Mount Vernon…

$475 Million: $285 Million: Resident & Retail Worker Spending~$265 Mil Spending in Trenton PotentialRetail Mount Vernon Spending

Source: ESRI; BLS; ICSC; ULI; HR&A Analysis

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 5454 Retail Leakage and Unmet Potential …Resulting in substantial unmet retail potential

$205 Million: Untapped Retail Potential~$265 Milin Trenton Mount VernonRetail Spending

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 5555 Retail Leakage and Unmet Potential Unmet potential and supportable square feet in Mount Vernon

Retail Spending Supportable . Mount Vernon is Sales Unmet Potential Potential Square Feet estimated to have Mount Vernon unmet retail sales Bldg Materials, Garden Equip. & Supply Stores potential of $205M, Building Material and Supplies Dealers $19,480,000 $7,240,000 $12,240,000 36,200 Lawn and Garden Equipment and Supplies Stores $2,580,000 $950,000 $1,640,000 4,800 which translates into Food & Beverage Stores 730,000 SF of Grocery Stores $118,470,000 $86,060,000 $32,410,000 85,900 Specialty Food Stores $5,760,000 $6,030,000 $0 - supportable retail Beer, Wine, and Liquor Stores $9,480,000 $4,010,000 $5,460,000 16,000 space Furniture & Home Furnishings Stores $19,550,000 $29,380,000 $0 -

Electronics & Appliance Stores $22,310,000 $14,590,000 $7,720,000 25,900 . Categories with the Clothing and Clothing Accessories Stores $33,910,000 $10,690,000 $23,220,000 101,000 most potential Sporting Goods, Hobby, Book, and Music Stores $6,770,000 $5,570,000 $1,200,000 4,800 include General General Merchandise Stores $63,700,000 $29,950,000 $33,750,000 164,300

Food Services & Drinking Places Merchandise, Full-Service Restaurants $57,820,000 $27,920,000 $29,900,000 99,300 Limited-Service Limited-Service Eating Places $60,420,000 $25,860,000 $34,570,000 118,300 Special Food Services $15,940,000 $3,900,000 $12,040,000 42,700 Eating Places, Drinking Places - Alcoholic Beverages $2,700,000 $1,620,000 $1,080,000 3,600 Clothing, Full-Service Health & Personal Care Stores $23,990,000 $14,300,000 $9,690,000 27,100 Restaurants, and Miscellaneous Store Retailers $11,290,000 $15,090,000 $0 - Total $474,180,000 $283,170,000 $204,920,000 729,800 Grocery Sources: ESRI; BLS; ICSC; ULI; HR&A Analysis $0

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 56 Retail Leakage and Unmet Potential Mount Vernon resident and worker spending potential

Capturing half of the $205 Million in retail spending potential would support:

365,000 SF of additional retail space

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 57 Mount Vernon Retail Gap Categories with significant potential

General Limited- Clothing & Merchandise Service Eating Accessories Places 165,000 SF 100,000 SF 120,000 SF

Source: ESRI; BLS; ICSC; ULI; HR&A Analysis

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 5858 Mount Vernon Retail Gap Food and beverage potential

Source: ESRI; BLS; ICSC; ULI; HR&A Analysis

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 5959 Mount Vernon Retail Gap Grocery spending potential

Potential for new, quality grocery offering

Source: ESRI; BLS; ICSC; ULI; HR&A Analysis

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 6060 Mount Vernon Retail Gap Additional categories with significant spending potential

Source: ESRI; BLS; ICSC; ULI; HR&A Analysis

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 6161 Outline

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 62 Mount Vernon 1 and 3-mile trade area map

Downtown Mount Vernon

Source: ESRI; HR&A

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 63 Retail Areas Compared 1 and 3-mile trade area maps

Fulton Mall, Brooklyn Soundview, The Bronx Fordham Rd., The Bronx

Myrtle Ave, Brooklyn 3rd Ave at 149 St., The Parkchester, The Bronx Bronx Source: ESRI; HR&A HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 64 Summary of Key Demographic Indicators 1-Mile retail trade areas

Population Average Annualized Unemployment with at Least Retail Trade Area Population Household Household Rate Bachelors Income Income Growth Degree Downtown Mount 68,505 $65,680 2.8% 11.4% 25.1% Vernon Fulton Mall 127,589 $93,652 2.2% 10.4% 56.5% Myrtle Ave 120,279 $59,668 2.9% 13.6% 35.5% Soundview 143,496 $39,959 2.4% 22.1% 11.6% 3 Ave / E 149 St 148,735 $35,776 1.9% 24.0% 10.1% Fordham Road 220,694 $40,151 2.4% 22.4% 14.1% Parkchester 145,482 $51,547 2.7% 17.0% 18.1%

Note: All socioeconomic data in this section is based upon ESRI estimates for 2010 and may not align with U.S. Census data Source: ESRI; HR&A

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 65 Summary of Key Demographic Indicators 3-Mile retail trade areas

Population Average Annualized Unemployment with at Least Retail Trade Area Population Household Household Rate Bachelors Income Income Growth Degree Downtown Mount 398,156 $76,424 2.3% 11.8% 29.4% Vernon Fulton Mall 1,026,614 $75,199 2.7% 12.1% 40.8% Myrtle Ave 1,220,358 $70,677 2.7% 13.0% 37.0% Soundview 1,002,921 $42,382 2.3% 21.0% 13.4% 3 Ave / E 149 St 1,253,979 $50,727 2.5% 18.6% 22.5% Fordham Road 1,197,556 $47,562 2.4% 19.0% 19.5% Parkchester 913,368 $46,576 2.5% 19.5% 15.7%

Source: ESRI; HR&A

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 66 Key Demographic Indicators – Retail Trade Areas Population, 2010

The Downtown Mount Vernon Trade Areas have smaller populations than the comparison retail trade areas, with the 1-Mile Trade Area relatively larger in relation to its comparison group

Source: ESRI; HR&A

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 67 Key Demographic Indicators – Retail Trade Areas Average household income, 2010

The Downtown Mount Vernon 3-Mile Trade Area has a higher household income than all comparison areas, while the 1-Mile Trade Area has a higher household income than all comparison areas except Fulton Mall

Source: ESRI; HR&A

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 68 Key Demographic Indicators – Retail Trade Areas Annualized household income growth, 2000-2010

The Downtown Mount Vernon 1-Mile Trade Area’s household income growth outpaced all other areas except Myrtle Ave, while the 3-Mile Trade Area’s average household income grew more slowly than the comparison retail trade areas

Source: ESRI; HR&A

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 69 Key Demographic Indicators – Retail Trade Areas Unemployment rate, 2010

The Downtown Mount Vernon Trade Areas are in contention with the Fulton Mall Trade Areas for the lowest unemployment rates amongst the comparison group

Source: ESRI; HR&A

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 70 Key Demographic Indicators – Retail Trade Areas Educational attainment, 2010

Both of the Downtown Mount Vernon Trade Areas have higher educational attainment than their respective comparison areas in The Bronx

Source: ESRI; HR&A

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 71 Retail Potential 1-Mile trade area resident spending potential

Despite a smaller population, the Downtown Mount Vernon 1-Mile Trade Area’s spending potential is competitive with that of the comparison areas.

Source: ESRI; HR&A

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 72 Retail Potential 3-Mile trade area resident spending potential

Similarly, despite a much smaller population, the Downtown Mount Vernon 3-Mile Trade Area’s retail spending potential is competitive with that of the comparison trade areas.

Source: ESRI; HR&A

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 73 Comparison Retail Trade Areas Select national and regional chains present in comparison areas

Fulton Mall / Myrtle Ave, Soundview, 3rd Ave / E. Fordham Rd, Parkchester, Albee Square, Brooklyn Bronx 149th St, Bronx Bronx Bronx Brooklyn Ashley Stewart Bank of America Bank of America Ashley Stewart Ashley Stewart AT&T AT&T Blockbuster Chase Bank AT&T AT&T Bank of America Burger King Chase Bank Domino’s Pizza Blimpie Burger King Burger King Children's Place Citibank Dunkin’ Donuts Burger King Conway Chase Bank Conway Domino’s Pizza Foot Locker Cohen's Fashion Opt. Dr. Jay’s Children’s Place Cookies H&R Block Golden Krust Conway Duane Reade Dressbarn Dr. Jay’s Metro PCS HSBC Bank Domino's Pizza Dunkin' Donuts Dunkin’ Donuts Duane Reade Walgreens Jackson Hewitt Dr. Jay’s Finish Line Foodtown Finish Line Little Caesars Duane Reade Foot Locker Footaction GameStop McDonald’s Envy Beauty and Nails GameStop GameStop IHOP Restaurant Papa John’s Foot Locker Jimmy Jazz Golden Krust Jimmy Jazz Payless ShoeSource GameStop Kid City H&R Block Lane Bryant RadioShack Cookies Lane Bryant Hollywood Video Macy's Rainbow Jimmy Jazz Lucille Roberts HSBC Bank Metro PCS Rite Aid KFC Marshalls Jackson Hewitt Modell's Subway Lucille Roberts McDonald's Macy’s Papa John’s Walgreens McDonald's Metro PCS NY & Co. Payless ShoeSource Metro PCS Modell's Payless ShoeSource Planet Fitness Modell’s Morton Williams Rainbow Popeyes Papa John’s Payless ShoeSource Starbucks RadioShack Porta Bella Pretty Girl Subway Rainbow RadioShack Rite Aid Sunglass Hut Rite Aid Rite Aid Sears Walgreens Sleepy’s Sleepy's Sleepy's Zales Jewlers Sterling Optical Subway Staples Sunglass Hut Verizon Wireless Subway Wendy's Walgreens VIM Zales Jewelers White Castle Walgreens Note: Green Highlight indicates retailer is already present in Downtown Mount Vernon Source: CoStar: BID Websites HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 74 Blue Highlight Indicates retailer is not present in Downtown Mount Vernon but is in a category with a retail gap Retailers Located in Comparison Areas…

Ashley Stewart Lane Bryant AT&T Little Caesars Bank of America Lucille Roberts Blockbuster Marshalls Burger King Modell's Children's Place Morton Williams Citibank NY & Co. Cohen's Fashion Optical Planet Fitness Conway Porta Bella Cookies Popeyes Dr. Jay’s Sears Dress Barn Sleepy’s Duane Reade Staples Envy Beauty and Nails Starbucks Finish Line Sterling Optical Footaction Sunglass Hut GameStop Verizon Wireless Hollywood Video Walgreens IHOP Restaurant Wendy's Jimmy Jazz White Castle KFC Zales Jewelers Kid City HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 75 Examples of retailers looking to expand in the NYC region whose expressed location criteria are met in Downtown Mount Vernon

Ashley Stewart AT&T Burger King Duane Reade Sleepy’s Sunglass Hut Walgreens

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 76 Outline

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 77 Four Areas of Potential Growth

Mount Vernon West TOD Development and new-era light-industrial and creative space potential. Mount Vernon East/ Downtown TOD Development (including multi-family residential and street level and neighborhood retail) potential. Fleetwood Established neighborhood with few infill opportunities. Sanford Boulevard Automobile-based retail strip with recent big-box success. Potential to expand retail district. Source: City of Mt. Vernon; HR&A

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 78 Pu tn am S t. Key Soft Site Opportunities Near Transit Mount Vernon West H ow wa rd S t.

.. St h iig H

Mixed-use TOD opportunities nearest Metro North station

Manufacturing zones along MacQuesten Parkway

Study Area

tt.. S tt S S s ou 1 th TOD study area was defined by S t. both pedestrian access to the City owned soft site Metro North station (walkability, topography, street access) and County owned soft site area characteristic (i.e, light industrial opportunities along HR&A Advisors, Inc. Mount Vernon Demographic, Market,Mac Questen). and Development Study| 79 Soft Site Opportunities Near Transit Mount Vernon West

89 Soft Sites (greater than 5,000SF land area and under 50% developed) 2.4 M developable SF 1.75 M developable manufacturing SF 500 K developable residential SF 120 K developable commercial SF 142k developable SF on city owned land (mostly along light-industrial Mac Questen corridor)

Source: City of Mt. Vernon; HR&A

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 80 Key Soft Site Opportunities Near Transit Mount Vernon East & Downtown

G G

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ama ama

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v Mixed-use development v

e opportunities on e t Ave Prospec undeveloped lots nearest Metro North station

Study Area 6t6t

hh 44 AA thth . v t. v AA d S ee nd vv 2 ee

Commercial opportunities along 4th Ave

t. 3rd S TOD study area was defined by both pedestrian access to the City owned soft site Metro North station (walkability, topography, street access) and County owned soft site area characteristic (i.e mixed use opportunities along 4th Ave and st HR&A Advisors, Inc. Mount Vernon Demographic, Market,1 Street). and Development Study| 81 Soft Site Opportunities Near Transit Mount Vernon East & Downtown

84 Soft-sites (greater than 5,000SF land area and under 50% developed) 7.9 M developable SF 7.4 M developable commercial SF 140 K developable manufacturing SF 350 K developable residential SF 200k developable SF on city owned land 330k developable SF on county owned land

Source: City of Mt. Vernon; HR&A

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 82 Key Soft Site Opportunities Near Transit Fleetwood

n io ttio a tta S S h tth rr No No o ro ttr

Little new, large-scale development opportunity exists around the Fleetwood station as the area is mostly developed with established multi-family, single family and retail structures

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 83 Area of Recent Growth Sanford Boulevard

The development of the big-box retail center on Sanford Boulevard near the Hutchinson River Parkway serves as an exemplar of proven success. Future retail development along Sanford Ave. follow this success. Multiple development sites exist along the boulevard

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 84 Key actions to encourage TOD development

1. Change zoning to allow for appropriately scaled and profitable development opportunities -Allow for mixed use development in key corridors with an emphasis on multi-family residential 2. Address surrounding area / identify physical character challenges to development and create a strategy to remediate those challenges 3. Increase infrastructure and streetscaping capacity to accommodate development 4. Identify state and federal incentive programs for TOD and urban renewal development 5. Issue an RFP for development of sites

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 85 Market Area Support for Development Mount Vernon Station Areas, ½ mile rings

Fleetwood Station Area

Mount Vernon East Station Area

Mount Vernon West Station Area

Note: Station Areas defined by .5 Mile Radius Source: ESRI; HR&A

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 86 Market Area Support for Development Comparison Station Areas, ½ mile rings

Yonkers Station Jamaica Station Flushing Station

Elizabeth Station Paterson Station Note: Station Areas defined by .5 Mile Radius Source: ESRI; HR&A

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 87 Market Area Support for Development Daily weekday station boardings, most recent year data is available

Jamaica had far more boardings than the other comparison stations, but is a transfer station with direct access to JFK Airport

The Mount Vernon stations had daily passenger boardings ranging between approximately 1000- 2000

Source: ESRI; HR&A

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 88 Market Area Support for Development Station area demographics

Population Average Annualized Unemployment with at Least Retail Trade Area Population Household Household Rate Bachelors Income Income Growth Degree Mount Vernon East 18,334 $59,066 3.2% 11.5% 24.5% Mount Vernon West 16,838 $71,407 3.5% 10.7% 22.7% Fleetwood 14,221 $79,575 2.2% 7.4% 43.4% Yonkers 15,246 $46,356 3.7% 16.9% 13.8% Flushing 46,004 $52,850 2.4% 9.8% 34.1% Jamaica 23,701 $57,989 3.0% 14.9% 12.2% Elizabeth 15,883 $56,039 3.1% 16.0% 14.8% Paterson 21,189 $37,897 2.9% 26.4% 5.4%

Note: All socioeconomic data in this section is based upon ESRI estimates for 2010 and may not align with U.S. Census data Source: ESRI; HR&A

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 89 Market Area Support for Development Station Area Population, 2010

Flushing had by far the largest population of the compared station areas The three Mount Vernon Station Areas had slightly below average populations compared to the other station areas

Note: Station Areas defined by .5 Mile Radius Source: ESRI; HR&A

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 90 Market Area Support for Development Station Area Average household income, 2010

All three Mount Vernon Station Areas had higher average household incomes than the comparison station areas

Note: Station Areas defined by .5 Mile Radius Source: ESRI; HR&A

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 91 Market Area Support for Development Station Area Annualized household income growth, 2000-2010

Mount Vernon East Station Area and Mount Vernon West Station Area had higher household income growth than all comparison areas except Yonkers

Note: Station Areas defined by .5 Mile Radius Source: ESRI; HR&A

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 92 Market Area Support for Development Station Area Unemployment rate, 2010

The Fleetwood Station Area had the lowest unemployment rate of the examined station areas, while the other Mount Vernon Station Areas outpaced all comparison areas except Flushing

Note: Station Areas defined by .5 Mile Radius Source: ESRI; HR&A

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 93 Market Area Support for Development Station Area Educational attainment, 2010

The Fleetwood Station Area had much higher educational attainment than the comparison station areas, while the other Mount Vernon Station Areas outpaced all comparison areas except Flushing

Note: Station Areas defined by .5 Mile Radius Source: ESRI; HR&A

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 94 Market Area Support for Development Station Area retail support - Station area resident spending potential

Mount Vernon’s Station Areas possess above average retail spending potential in comparison to the other station areas, trailing only the Flushing Station Area

Note: Station Areas defined by .5 Mile Radius Source: ESRI; HR&A

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 95 Market Area Support for Development Unmet potential and supportable SF in Mount Vernon East Station Area

Retail Spending Supportable . Mount Vernon East is Sales Unmet Potential Potential Square Feet estimated to have Mount Vernon East Station Area unmet retail sales Bldg Materials, Garden Equip. & Supply Stores potential of $23M, Building Material and Supplies Dealers $4,210,000 $1,700,000 $2,510,000 7,400 Lawn and Garden Equipment and Supplies Stores $550,000 $0 $550,000 1,600 which translates into Food & Beverage Stores 86,000 SF of Grocery Stores $27,410,000 $41,760,000 $0 - Specialty Food Stores $1,340,000 $2,770,000 $0 - supportable retail Beer, Wine, and Liquor Stores $2,130,000 $1,110,000 $1,020,000 3,000 space Furniture & Home Furnishings Stores $4,520,000 $5,460,000 $0 -

Electronics & Appliance Stores $5,120,000 $3,820,000 $1,300,000 4,400 . Categories with the Clothing and Clothing Accessories Stores $7,990,000 $7,240,000 $760,000 3,300 most potential Sporting Goods, Hobby, Book, and Music Stores $1,650,000 $800,000 $860,000 3,400 include General General Merchandise Stores $14,410,000 $9,560,000 $4,850,000 23,600

Food Services & Drinking Places Merchandise, Full-Service Restaurants $14,050,000 $10,660,000 $3,390,000 11,300 Limited-Service Limited-Service Eating Places $15,710,000 $10,240,000 $5,480,000 18,700 Special Food Services $3,750,000 $1,530,000 $2,230,000 7,900 Eating Places, Full- Drinking Places - Alcoholic Beverages $790,000 $440,000 $350,000 1,100 Service Restaurants, Health & Personal Care Stores $5,440,000 $6,920,000 $0 - and Special Food Miscellaneous Store Retailers $2,490,000 $5,670,000 $0 - Total $111,560,000 $109,670,000 $23,280,000 85,800 Services Sources: ESRI; BLS; ICSC; ULI; HR&A Analysis $0 Note: Station Areas defined by .5 Mile Radius

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 96 Market Area Support for Development Mount Vernon East Station Area resident and worker spending potential

Capturing half of the $23 Million in retail spending potential would support:

43,000 SF of additional retail space

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 97 Comparison Station Areas – Mount Vernon East Station Area Select national and regional Chains Present in Comparison Areas

Yonkers Flushing Jamaica Elizabeth Paterson

Bank of America Allstate Bank of America AT&T AJ Wright Burger King AT&T Blimpie The Children’s Place AT&T Chase Bank Burger King Capital One Bank Dunkin Donuts Baskin Robbins Citibank Chase Bank Chase Bank Family Dollar Burger King CVS Citibank Dunkin Donuts Popeyes Dunkin Donuts Footaction Duane Reade Envy Beauty and Nails Rainbow Family Dollar H&R Block Foot Locker Golden Krust GameStop HSBC Bank GameStop Gothic Furniture KFC Jackson Hewitt GNC Quizno's Metro PCS Liberty Tax Service Haagen-Dazs UPS Store Payless ShoeSource McDonald's HSBC Bank Popeyes Metro PCS Modell's Rainbow Pretty Girl New York Life Rent-A-Center Rent-A-Center Old Navy Sketchers ShopRite Supermarket Payless ShoeSource Subway Sprint Petland Discounts State Farm Insurance Subway Popeyes TD Bank T-Mobile Red Mango Verizon Scottrade, Inc. Wells Fargo Sleepy's Sprint

Source: CoStar: BID Websites Note: Green Highlight indicates retailer is already present in Mount Vernon East HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 98 Blue Highlight Indicates retailer is not present in Mount Vernon East but is in a category with a retail gap Retailers Absent at Mount Vernon East but Located in Comparison Station Areas…

AJ Wright GNC Red Mango Allstate Gothic Furniture Rent-A-Center AT&T Haagen-Dazs Scottrade, Inc. Bank of America H&R Block ShopRite Supermarket Baskin Robbins HSBC Bank Sketchers Burger King KFC Sleepy's The Children’s Place MetroPCS Sprint Citibank Modell's State Farm Insurance CVS New York Life TD Bank Duane Reade Old Navy T-Mobile Envy Beauty and Nails Petland Discounts UPS Store Footaction Popeyes Verizon GameStop Quizno‘s Wells Fargo

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 99 Retail Leakage and Unmet Potential Unmet potential and supportable sf in Mount Vernon West Station Area

Retail Spending Supportable Sales Unmet Potential . Mount Vernon West Potential Square Feet is estimated to have Mount Vernon West Station Area Bldg Materials, Garden Equip. & Supply Stores unmet retail sales Building Material and Supplies Dealers $5,090,000 $3,450,000 $1,640,000 4,900 potential of $76M, Lawn and Garden Equipment and Supplies Stores $600,000 $0 $600,000 1,800 which translates into Food & Beverage Stores Grocery Stores $28,440,000 $6,660,000 $21,790,000 57,700 265,000 SF of Specialty Food Stores $1,730,000 $800,000 $940,000 3,800 supportable retail Beer, Wine, and Liquor Stores $2,300,000 $1,740,000 $560,000 1,600 Furniture & Home Furnishings Stores $4,910,000 $6,810,000 $0 - space

Electronics & Appliance Stores $5,420,000 $1,760,000 $3,660,000 12,300

Clothing and Clothing Accessories Stores $8,290,000 $820,000 $7,470,000 32,500 . Categories with the Sporting Goods, Hobby, Book, and Music Stores $1,720,000 $290,000 $1,430,000 5,700 most potential General Merchandise Stores $15,230,000 $1,900,000 $13,330,000 64,900 include General Food Services & Drinking Places Merchandise, Full-Service Restaurants $13,950,000 $6,410,000 $7,550,000 25,100 Limited-Service Eating Places $14,620,000 $7,620,000 $7,000,000 23,900 Grocery, Clothing, Special Food Services $3,740,000 $340,000 $3,400,000 12,100 Full-Service Drinking Places - Alcoholic Beverages $650,000 $670,000 $0 - Health & Personal Care Stores $5,880,000 $760,000 $5,120,000 14,300 Restaurants, and

Miscellaneous Store Retailers $2,790,000 $1,720,000 $1,080,000 4,200 Limited-Service Total $115,360,000 $41,720,000 $75,560,000 264,700 Eating Places Sources: ESRI; BLS; ICSC; ULI; HR&A Analysis $0 Note: Station Areas defined by .5 Mile Radius

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 100 Retail Leakage and Unmet Potential Mount Vernon West Station Area resident and worker spending potential

Capturing half of the $76 Million in retail spending potential would support:

132,000 SF of additional retail space

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 101 Comparison Station Areas – Mount Vernon West Station Area Select national and regional chains present in comparison areas

Yonkers Flushing Jamaica Elizabeth Paterson

Source: CoStar: BID Websites Note: Green Highlight indicates retailer is already present in Mount Vernon West HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 102 Blue Highlight Indicates retailer is not present in Mount Vernon West but is in a category with a retail gap Retailers Absent at Mount Vernon West but Located in Comparison Station Areas…

AJ Wright Foot Locker Pretty Girl Allstate GameStop Quizno's AT&T GNC Rainbow Bank of America Gothic Furniture Red Mango Baskin Robbins Haagen-Dazs Rent-A-Center Blimpie H&R Block Scottrade, Inc. Burger King HSBC Bank ShopRite Supermarket Capital One Bank Jackson Hewitt Sketchers Chase Bank KFC Sleepy's The Children’s Place Liberty Tax Service Sprint Citibank MetroPCS State Farm Insurance CVS Modell's Subway Duane Reade New York Life TD Bank Dunkin Donuts Old Navy T-Mobile Envy Beauty and Nails Payless ShoeSource UPS Store Family Dollar Petland Discounts Verizon Footaction Popeyes

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 103 Retail Leakage and Unmet Potential Unmet potential and supportable sf in Fleetwood Station Area

Retail Spending Supportable Sales Unmet Potential . Fleetwood is Potential Square Feet estimated to have Fleetwood Station Area Bldg Materials, Garden Equip. & Supply Stores unmet retail sales Building Material and Supplies Dealers $6,290,000 $90,000 $6,200,000 18,300 potential of $99M, Lawn and Garden Equipment and Supplies Stores $870,000 $0 $870,000 2,600 which translates into Food & Beverage Stores Grocery Stores $32,930,000 $7,110,000 $25,820,000 68,400 355,000 SF of Specialty Food Stores $1,590,000 $220,000 $1,360,000 5,500 supportable retail Beer, Wine, and Liquor Stores $2,790,000 $890,000 $1,890,000 5,500 Furniture & Home Furnishings Stores $5,600,000 $600,000 $4,990,000 19,600 space

Electronics & Appliance Stores $6,410,000 $610,000 $5,800,000 19,400

Clothing and Clothing Accessories Stores $9,090,000 $100,000 $8,990,000 39,100 . Categories with the Sporting Goods, Hobby, Book, and Music Stores $1,740,000 $350,000 $1,390,000 5,500 most potential General Merchandise Stores $18,450,000 $0 $18,450,000 89,800 include General Food Services & Drinking Places Merchandise, Full-Service Restaurants $14,850,000 $6,730,000 $8,110,000 27,000 Limited-Service Eating Places $13,500,000 $5,450,000 $8,050,000 27,500 Grocery, Clothing, Special Food Services $4,310,000 $380,000 $3,930,000 14,000 Limited-Service Drinking Places - Alcoholic Beverages $440,000 $0 $440,000 1,400 Health & Personal Care Stores $7,130,000 $6,270,000 $860,000 2,400 Eating Places, and

Miscellaneous Store Retailers $3,460,000 $1,180,000 $2,280,000 8,800 Full-Service Total $129,430,000 $29,990,000 $99,440,000 354,900 Restaurants Sources: ESRI; BLS; ICSC; ULI; HR&A Analysis $0 Note: Station Areas defined by .5 Mile Radius

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 104 Retail Leakage and Unmet Potential Fleetwood Station Area resident and worker spending potential

Capturing half of the $99 Million in retail spending potential would support:

177,000 SF of additional retail space

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 105 Comparison Station Areas – Fleetwood Select national and regional chains present in comparison areas

Yonkers Flushing Jamaica Elizabeth Paterson

Source: CoStar: BID Websites Note: Green Highlight indicates retailer is already present in Fleetwood HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 106 Blue Highlight Indicates retailer is not present in Fleetwood but is in a category with a retail gap Retailers Absent at Fleetwood but Located in Comparison Station Areas…

AJ Wright Haagen-Dazs Quizno's AT&T Jackson Hewitt Rainbow Baskin Robbins KFC Red Mango Blimpie Liberty Tax Service Rent-A-Center Burger King McDonald's Scottrade, Inc. The Children’s Place MetroPCS ShopRite Supermarket Citibank Modell's Sketchers Envy Beauty and Nails New York Life Sleepy's Family Dollar Old Navy Sprint Footaction Payless ShoeSource TD Bank Foot Locker Petland Discounts T-Mobile GameStop Popeyes UPS Store GNC Pretty Girl Wells Fargo Gothic Furniture

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 107 Outline

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 108 Key Recommendations

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 109109 Bolster the identity of Downtown Mount Vernon A unique shopping / entertainment district centered on food and clothing

. Mount Vernon should build upon its diverse heritage to offer an experience that is entirely different from that of a strip center or shopping mall.

. Restaurants can serve to anchor the Downtown, as well as become the focal point of cluster promotion efforts, appealing to those Westchester consumers who might be unaware of Mount Vernon.

. For example, the burgeoning Brazilian restaurant cluster could be strengthened with more up-market offerings (e.g. a churrascaria).

. Retail can be enhanced by leveraging spending potential and developing marketing collateral to attract national and regional retailers that have shown interest in similar markets (e.g. Ashley Stewart).

. Gramatan Ave. can become South Westchester’s Main Street, an authentic place of diverse businesses and vibrant street life serving area residents, Downtown employees, House of Soul and visitors.

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 110 Attract creative community across sectors Identify opportunities to support its budding creative class industries

Mount Vernon should seek to bridge its traditional manufacturing base and nascent creative industries with creative, impactful initiatives such as the following: . Encourage industrial arts initiatives . Establish a kitchen incubator . Provide artist live / work space The above initiatives can be encouraged on city owned land near Mt. Vernon West . Create incentives for restaurants This initiative can be implemented near the burgeoning restaurant scene around Mt. Vernon East

An event at the Mackey Twins Art Gallery in Mount Vernon

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 111 Provide Artist Live / Work Space Peekskill Art Lofts – Peekskill, NY

. 28 units in Downtown Peekskill

. Owners buy shares—between $16,000 and $28,000, depending on the size of the apartment—and then pay a maintenance fee into a pool that covers all mortgages, taxes and fees, which run between $1,050 and $1,600 a month.

. Owners must prove income source

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 112 Enhance the City’s economic development capacity An Economic Development Director could catalyze investment in the City

. Mount Vernon should prioritize resources to hire an Economic Development Director for the City. Responsibilities could include:

. Working with the Chamber of Commerce to attract and retain businesses.

. Assisting businesses throughout the regulatory and entitlement process.

. Minimizing pain points in the business licensing process through a comprehensive evaluation of the current process.

. Interfacing with the Planning Department to coordinate how planning initiatives can contribute to economic development objectives and vice versa.

. Reviving the position of Downtown Manager should also be considered. Someone who “lives and breathes” Downtown Mount Vernon can catalyze branding efforts, closer collaboration within the business community, and retail and restaurant cluster building strategies.

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 113113 Create a Downtown Business Improvement District A BID could activate Downtown Mount Vernon’s latent potential

. A BID could bind the Mount Vernon business community together with a clear mission and vision for strengthening Downtown Mount Vernon as a place to work, live, and play. The energy and resources a BID structure would bring to Downtown Mount Vernon could have a truly transformative impact on the area.

. Among the activities a BID should prioritize include:

. Spearhead a “Safe and Clean” Program.

. Improve the Downtown experience by cataloging problematic buildings, parcels, and streets and devoting available resources to remedying these blighting influences. Incremental, block-by-block improvements to the public realm could yield significant returns.

. Provide tenant services and lead retention efforts.

. Participate in Downtown branding and retail and restaurant cluster building strategies to establish the district as a unique regional destination.

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 114 Successful BID Models Myrtle Avenue Brooklyn Partnership – Brooklyn, NY

. Composed of a Local Development Corporation and BID, the Myrtle Avenue Brooklyn Partnership is leading the successful revitalization of the Myrtle Ave Corridor.

. The diverse array of services sponsored by the Partnership includes: business attraction and retention, marketing campaigns and promotions, sanitation and graffiti removal, façade and storefront improvements, historical preservation, and public art and public space enhancements.

HR&A Advisors, Advisors, Inc. Inc. Mount Vernon Demographic, Market, and Development Study| 115115115 Successful BID Models Downtown Brooklyn Partnership – Brooklyn, NY

. Driving economic development efforts in Downtown Brooklyn, the Downtown Brooklyn Partnership administers three Business Improvement Districts - the MetroTech BID, the Fulton Mall Improvement Association, and the Court- Livingston-Schermerhorn BID.

. The range of services sponsored by these BIDS includes: sanitation and graffiti removal, security, marketing and promotions, streetscape improvements, and storefront and façade improvements.

HR&A Advisors, Advisors, Inc. Inc. Mount Vernon Demographic, Market, and Development Study| 116116116 Encourage Industrial Arts initiatives Greenpoint Manufacturing and Design Center – Greenpoint, Brooklyn

. Non-profit developer of industrial space

. Acquires, rehabs, and manages industrial properties.

. Serves as a financial intermediary.

. Serves as advocate by building coalitions and fostering collaboration among stakeholders.

. Influences policy and the allocation of resources related to manufacturing and/or industrial development.

. 5 properties totaling 500,000 sf

. 100 business, 500 employees

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 117 Establish a Kitchen Incubator Hot Bread Kitchen and Chef’s Kitchen

. Chef’s Kitchen – Robertson Blvd, Los Angeles

. 5 kitchens

. Rental fee is as low as $18/hour

. Used by professionals, caterers, classes, parties

. Hot Bread Kitchen – Harlem, New York City

. Supports start-up food entrepreneurs in launching scalable food businesses

. Heavily subsidized for applicants whose household income is no more than 250% of the federal poverty level.

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 118 Capitalize upon the City’s cultural identity City owned property that could be used to house creative incubators 570k SF of developable real estate on city and county owned land that could be used for strategic development spur new industry and commercial activity in the two identified TOD study areas

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 119 Capitalize upon the City’s cultural identity Build relationships with the City’s well-known residents

. Mount Vernon officials should seek to build relationships with the City’s many famous sons and daughters and involve them in promotional efforts and development opportunities.

. A stakeholder summit can help identify how famous Mount Vernon residents could invest in their community.

. Partnering with community investment programs for high net worth individuals administered by major banks is another opportunity.

The community celebrates the dedication of The Ben Gordon New Life Playground

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 120 Produce marketing materials highlighting the City’s strengths Mount Vernon should cultivate a stronger regional identity

. Marketing material for retailers can highlight the City’s strong demographic profile, retail spending potential, and favorable competitive positioning outlined earlier in this report.

. Streetscape improvements and other improvements to the public realm should precede a coordinated marketing effort in order to reinforce the City’s identity and encourage momentum behind marketing efforts.

. Create a flexible product that could showcase individual properties that are Sample neighborhood promotional material from Washington, DC for rent or sale.

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 121 Marketing Material Overview Themes from this presentation to include in City’s marketing material

Positive attributes of the city: .City has higher household incomes than similar urban areas in the New York region ($71,542) .City is one of the most densely populated cities in the United States (15,688 residents per square mile) .City is strategically situated close to New York City, and has three Metro North Stations and good highway access .There are multiple opportunities for Downtown and Transit Oriented Development – Slides 78-81 .Proud history of local leadership in arts entertainment and professional sports

Demographics, jobs, and spending potential: .Population and daytime population (68,000 residents, 58,592 daytime population) .$205 million untapped retail potential in Mount Vernon – Slide 19 .A high proportion (33%) of Mount Vernon residents are in the key retail spending 20-44 age bracket – Slide 27 .Some of the fastest growing industries over the period – Arts & Entertainment, Information, and Professional Services – are industries often associated with the creative, knowledge-based economy – slide 33 .Average household incomes grew faster in Mount Vernon than elsewhere in South Westchester over the period 2000-2010 (2.7% vs. 2.0%) – Slide 29 .High percentage of residents have a four –year college degree (nearly 30%) – Slide 31 .New residential developments will lead to an increase in economic activity – Slides 44-46

Downtown retail opportunities: .Strong presence of national retailers in downtown – Slide 49 .Categories of significant potential include general merchandise, limited-service food, and clothing & accessories – Slide 58 .High household income means more spending potential and great opportunity for retailers– Slide 68 .Despite a smaller population, the Downtown Mount Vernon 1-Mile Trade Area’s spending potential is competitive with that of the comparison areas. – Slide 72

Development opportunities: .Soft sites slide 78 – 81

Proximity to NYC and transportation access: .Road: Five major highways (three of which are in the city and two are less than a mile away) create access to entire NYC region .Rail: Three Metro North Stations – Mount Vernon East, Mount Vernon West, and Fleetwood; The 2 & 5 MTA subway trains are within a 10-minute walk from the Mount Vernon border – High train ridership numbers – Quick trip time to Grand Central . Bus: 10 Bee-Line Bus routes serve the City – Ridership numbers and cluster of lines in Downtown area

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 122122 Identify targeted TOD opportunities Mount Vernon’s proximity, transit access, and density are enormous assets

. Mount Vernon should position itself to capitalize on (1) the resurgence in interest in living in walkable urban environments and (2) the New York Region’s low residential vacancy rates. Actions to be taken include:

. Identify strategic parcels for redevelopment.

. Conduct developer roundtable in order to understand what the attributes and constraints of targeted sites are from a developer-perspective.

. Investigate financing options for City-owned parcels.

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 123 Many of the attributes necessary for thriving districts…

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 124124 …are already here.

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 125125 Identifying what already works in Mount Vernon, and replicating these experiences, will ultimately drive the City’s revitalization

HR&A Advisors, Inc. Mount Vernon Demographic, Market, and Development Study| 126126 Mount Vernon, New York Demographic, Market, and Development Study

Prepared November 04, 2011

This study was prepared for the City of Mount Vernon and funded by a grant from the New York State Department of State provided under Title 3 of the Environmental Protection Fund.