City of Lawrence

Retail Task Force

October 5, 2010 meeting minutes

MEMBERS PRESENT:	Robert Chestnut, Earl Reineman, Tom Kern, Allison Vance Moore, John Ellena
MEMBERS ABSENT:	Diane Oakes, Susan Cook, Mike Gaughan, Leslie Alhert
STAFF PRESENT:	David L. Corliss, City Manager Diane Stoddard, Assistant City Manager Scott McCullough, Planning and Development Services Director Amy Brown Miller, Long-Range Planner Roger Zalneraitis, Economic Development Coordinator/Planner
PUBLIC PRESENT:	Hank Booth

Call meeting to order:

Commissioner Rob Chestnut called the meeting to order at 4:10 pm on Tuesday October 5, 2010.

Discussion: What is the role of the City in retail development?

The discussion from the last month was recapped. Commissioner Chestnut asked what the Task Force member’s thoughts were on the use of incentives for retail. Mr. Reineman indicated that he could see it used for redevelopment and things of that sort, but didn’t believe incentives should be used for recruitment of retail that was brought in from the outside and would compete with other local businesses. Mr. Reineman indicated that incentives should be used for businesses with primary jobs, jobs that bring income from outside of the community and create or support other businesses. Commissioner Chestnut asked how this related to incubators. Mr. Reineman indicated that he thought retail incubators weren’t an issue for him personally because they were assisting start-up businesses.

Mr. Kern indicated his concern was new retailers who get incentives, versus existing retailers that didn’t get any incentive. Mr. Kern mentioned the new design store in the former Arensberg Shoes location. Mr. Kern indicated the costs for that business was extensive. Mr. Kern indicated that he wanted to see assistance for start-up costs related to new businesses like this, such as low interest loan or grant programs. He thought that would help direct resources at potential obstacles that cause potential businesses to not start. Ms. Vance Moore indicated the importance of having tools in the toolbox. She indicates that she is aware that we have certain tools, but thinks there is a perception there that they can’t be utilized. Ms. Vance Moore indicated that examples of these negative perceptions include: O’Reilly’s, Jade Garden, Ingredient, and Herbal Life. Mr. Corliss indicated that there are also some examples of where the City has worked hard to ensure that a development did occur- such as the care home at the former Woodlawn School and others. Mr. Corliss also indicated that sometimes there are multiple objectives or values at play, such as historic preservation, fire safety, etc., and every project has its unique circumstances. Ms. Vance Moore indicated that she was concerned with missing the last meeting and that the task force was proceeding with an RFP to recruit new retail when we haven’t as a community addressed process issues. Commissioner Chestnut indicated that code issues and process issues take time to improve. His hope was that we could work on these things in parallel- make process improvements but also try to help retail, as well. Ms. Vance Moore indicated that we need to address perceptions that she hears on the street. Commissioner Chestnut indicated that perhaps a group could look at issues for retailers. Mr. McCullough indicated that there has been quite a bit of changes implemented already. He mentioned that in the O’Reilly project included a complex piece of property that involved KDOT and Lawrence’s downtown with its older buildings have challenges related to ADA improvements, etc.

Mr. Ellena indicated it might be good for the City to have an ombudsman to help retailers with answering questions about investment. Mr. Corliss indicated that those questions can come to him, or others in the City staff. Mr. McCullough responded that there is a role for his position. Ms. Vance Moore indicated that Jade Garden approached her to follow up with some additional questions from staff, but that many retailers may just take an answer as given and not pursue it further. Commissioner Chestnut asked ~~now~~ how the City could help very small or new start-up retailers with navigating the processes. He suggested that possibly that be a discussion item for the next meeting.

Mr. Kern indicated that he is comfortable with keeping the incentive tools in the toolbox at this time. He said that there is a significant amount of older retailer that the tools could help incentive to redevelop. He said that personally he was in favor of CIDs because it relies on the performance of the owner of the property and doesn’t rely on the dollars of general taxpayers- it is consumer and choice driven.

Ms. Vance Moore indicated that there is a possibility of someone doing a retail incubator without incentives.

Commissioner Chestnut indicated that a lot has to do with expectations and communication. There was discussion that some communities have a larger sense of desperation and tend to have less regulation. Commissioner Chestnut indicated that he thought that we needed a list of items in our toolkit to get a consensus from the group about which tools they believe are relevant. He also indicated that looking at obstacles facing the small retailer would be helpful. Mr. Reineman thought that was a good course and a market driven approach.

Minutes:

The September meeting minutes were approved unanimously.

Review Draft RFP:

Mr. Zalneraitis reviewed the draft RFP. The merits and concerns about the RFP were discussed. It was indicated that the value of the RFP was not alone for the purpose of attracting outside retailers, but also for assisting existing retailers. Mr. Booth asked about the value of studies and whether it has been determined if the studies are valuable and provide a return. Commissioner Chestnut indicated that he didn’t see this as a study, but saw this as information on buying habits of retailers in the community and how this information can enhance retailers within the community and the information gets refreshed regularly.

The meeting was adjourned at 5:30 p.m. The next meeting is set for Tuesday, November 9th at 4:00 pm. There will be further discussion on a list of retail tools, obstacles to small businesses, and continued discussions on the RFP draft and the draft final report at the November meeting. Commissioner Chestnut encouraged members to read through the RFP and contact Mr. Zalneraitis for additional questions in preparation for more discussion in November.