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RESOLUTION NO. 11351 A RESOLUTION APPROVING AN AGREEMENT BETWEEN THE CITY OF PUEBLO, A MUNICIPAL CORPORATION, AND THE BUXTON COMPANY FOR SERVICES RELATED TO AN ECONOMIC RETAIL DEVELOPMENT ANALYSIS AND STRATEGY FOR THE CITY OF PUEBLO AND AUTHORIZING THE PRESIDENT OF CITY COUNCIL TO EXECUTE SAME WHEREAS, the City Council has determined that an economic retail analysis and development plan is vital to the growth, stability, health, and welfare of the City of Pueblo and its citizens; and WHEREAS, the proposal from the Buxton Company, has been determined to be an acceptable and viable retail economic analysis and strategy to enhance the retail growth for the economic benefit of the City, now therefore, BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. The Buxton Company is hereby accepted and approved as consultants to perform an economic retail development strategy for the City of Pueblo. SECTION 2. An Agreement dated July 28, 2008, a copy of which is attached hereto and made a part hereof, after having been approved as to form by the City Attorney, by and between Pueblo, a Municipal Corporation, and The Buxton Company, is hereby approved. SECTION 3 Funds in the amount of $60,000 will be included in the mid -year budget adjustment in the 2008 General Fund Budget to fund an economic retail development strategy. SECTION 4. The President of the City Council is hereby authorized to execute the said Agreement on behalf of Pueblo, a Municipal Corporation, and the City Clerk shall affix the seal of the City thereto and attest the same. INTRODUCED July 28, 2008 r i . Councilperson AP PROVE PPI`81f I T' i IL m] C .' _.-. M Thurston I-e s . 1 13,51 E) ID Background Paper for Proposed RESOLUTION DATE: July 28, 2008 AGENDA ITEM # a� DEPARTMENT: OFFICE OF THE CITY MANAGER DAVE GALLI, CITY MANAGER DOUG FITZGERALD, ASSISTANT CITY MANAGER TITLE A RESOLUTION APPROVING AN AGREEMENT BETWEEN THE CITY OF PUEBLO, A MUNICIPAL CORPORATION, AND THE BUXTON COMPANY FOR SERVICES RELATED TO AN ECONOMIC RETAIL DEVELOPMENT ANALYSIS AND STRATEGY FOR THE CITY OF PUEBLO AND AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAME ISSUE Should the City Council approve an agreement with the Buxton Corporation for an economic retail development strategy? BACKGROUND The Buxton Company performs retail and marketing analysis for communities and businesses in the United States. Buxton approached the City about performing such an analysis to expand the City's retail sector through custom marketing materials and strategies targeting the unique location requirements of retailers. Buxton will analyze up to three (3) distinct retail locations selected by the City and the Urban Renewal Authority of Pueblo (URA) that will yield a recommendation of the site best positioned for retail recruitment. With that recommendation, the City will make a final determination of the retail site to be selected for retail matching. In addition, the URA will be partnering with the City on this project and will be sharing half the cost of these services in the amount of $30,000. The URA at their board meeting on July 8, 2008 approved a resolution appropriating such funds. RECOMMENDATION Approval of the Resolution. FINANCIAL IMPACT Funds in the amount of $60,000 will be appropriated from the City Council Professional Services Account in the 2008 General Fund Budget. In addition, the Urban Renewal Authority of Pueblo (URA) has agreed to share half of the cost of the services in the amount of $30,000. Community/9 Proposal to Develop: A RETAIL ECONOMIC DEVELOPMENT STRATEGY For: City of Pueblo, CO From: Robert Belcher July 28, 2008 Expiration Date: August 1, 2008 Copyright © 2008 Buxton Company. All Rights Reserved. ]IMENTINA M II. INTRODUCTION TO BUXTON III. NEEDS /CHALLENGES IV. GOALS /DESIRED RESULTS V. PROCEDURES /SCOPE OF WORK VI. PROJECT TEAM VII. PROJECT REQUIREMENTS VIII. TIMELINE IX. FEES FOR SERVICES X. SIGNATURE PAGE XI. ENDORSEMENTS /REFERENCES Buxton , M-0 Community19 1. SUMMARY Community /D® is a proven retail development strategy that can be immediately implemented by Pueblo. Buxton integrated proprietary technical capabilities with more than 500 cumulative years experience in retail management and local economic development to create Community /DO. This unique strategy has brought both innovation and a disciplined approach to municipal retail development efforts. During the 60 business days it takes to complete Community /D®, civic leaders are actively involved in the process and make important decisions that guide the direction and results. The four main phases of the process are: Researching and Verifying Pueblo's Retail Trade Area This phase starts with the in -depth collection of the same location variables that Buxton uses to qualify locations for retail clients. Because of Buxton's unique capabilities, we can translate this retail- specific information into market intelligence that community leaders need to attract and grow their retail sectors. Evaluating Pueblo's Retail Potential The evaluation phase will clarify what makes Pueblo distinctive and valuable from a retailer's viewpoint. Through daily involvement in retail location analysis, Buxton has acquired the unmatched ability to evaluate a community's retail potential. Matching Retailers and Restaurants to Pueblo's Market Potential The consumer profile of Pueblo's trade area will be matched against the customer profiles of over 5,000 retailers and restaurants in Buxton's proprietary database. The final match list is developed with the input of community leaders so that it reflects the needs and desires of the residents. Delivering Pueblo's Marketing Packages Individual marketing (pursuit) packages for each retailer match are delivered in both hard copy and in SCOUT®. Our exclusive online marketing system, SCOUT® helps you to showcase your city in the best light. It gives you the ability to create presentations and quality documents and to share information in the match reports. With Community/DO, Pueblo can unleash its full retail potential, seize new retail opportunities and expand existing businesses. Community19 II. INTRODUCTION TO BUXTON Since our founding in 1994, Buxton has been a leading force in retail location and development. We are recognized for creating solutions that provide results. Buxton began as a service to help retailers make informed site selection decisions by understanding their customers markets. Buxton leaders soon realized that location and market analysis could also be desiring retail expansion. Please note that i n inclusive of all retail concepts. Community/D@ and precisely determining their the company's expertise in retail leveraged to benefit communities this proposal the term "retail" is Designed specifically for use in community economic development programs, Buxton's Community /D® process has assisted more than 350 public sector clients nationwide, resulting in the development of more than 15 million square feet of retail space. We integrate our impressive technical capabilities with more than 500 cumulative years of retail management and local economic development experience to help municipalities achieve their retail goals. More than simply providing data, Community /D® supplies custom marketing materials and strategies targeting the unique location requirements of retailers, developers and commercial real estate brokers. Community /DO clients achieve outstanding success using our tools for retail identification, selection and recruitment. And our clients benefit from our unique understanding of retail site selection from the retailer's point of view. The combination of technical expertise and professional guidance gives municipalities the capacity to immediately implement an effective retail development program. Benefits of Community/DO With Community /D®you have immediate access to: Retail Industry Expertise. Gain a competitive position by working with professionals who have years of retail management experience plus current insights into your community and site selection processes and trends. • Community Development Best Practices. Expand and sharpen your retail development focus by incorporating best practices discovered by Buxton through daily work with municipalities across the nation. • Proprietary Systems. Gather useful information by having Buxton's technology specialists analyze your trade area accessing data stored on Buxton's in -house databases. MO CommunitylU • Personalized Content. Advance your retail recruitment program by receiving personal guidance from our staff and ongoing insight into key industry topics via our monthly e- newsletter, webcasts and other interactive tools. • Long -Term Partnership. As a Buxton client and partner you have unlimited access to our staff to help optimize your marketing efforts at the International Council of Shopping Centers (ICSC) annual meeting in Las Vegas, NV. • Marketing Data and Tools. Enhance your marketing messages and presentations by using SCOUT®, Buxton's online trade area database and marketing tool, available to you for one year after project delivery. • Add -On Research. Keep your CommunityV updated and focused by getting special rates on additional research, including retail marketing packages and refreshes of basic information. ME Community /U III. NEEDS /CHALLENGES Pueblo wants to understand and then capitalize on the retail development opportunities. As communities increasingly compete for retail dollars, attracting the attention of retailers has become more challenging than ever. Marketing your community plays a dominant role in today's competitive economy. The challenge for the community is to attract retailers and developers by providing trade area information that is complete, accurate and up -to -date. Using our proprietary methodologies, Buxton will collect and analyze your community's trade area information and give it to you in a format that is easy -to- use and appealing to real estate executives and developers. The best information, however, is useless without a plan for using it. Much more than data collection, Community /D® is an execution strategy that can help you build or revitalize your existing marketing and economic development program. With Community /D 0 , you will be prepared to: • Achieve your retail potential by establishing a long -term partnership with Buxton • Integrate retail development into your economic development program • Increase your success by preparing Pueblo to meet the needs of retailers • Effectively position your community by leveraging your locations' strengths and minimizing weaknesses • Convey Pueblo's advantages over competitors' advantages • Establish credibility with retail decision makers • Maximize time and resources by not pursuing unqualified prospects • Win the confidence and trust of prospects by understanding their priorities • Use competitive analysis to close the sale Bu7rson rM Community19 IV. GOALS AND DESIRED RESULTS The primary goal of Community /D® is to prepare Pueblo to successfully expand its retail sector. Community /0 serves as the framework for developing a sustainable marketing program that not only achieves short -term goals but also endures to ensure the economic viability of the retail sector over the long -term. Such a marketing program will bring the following desired results: • Residents' desires to shop and dine at home will be fulfilled • Retail leakage will be minimized • Tax revenues (property and sale /use taxes) will increase • Employment opportunities will grow • Pueblo's ability to capture other economic opportunities will be enhanced Bwagn MM CommunitylD° V. PROCEDURES /SCOPE OF WORK Once you have engaged Buxton to work with you in developing CommunitylD, a project team will be assigned to guide you through the entire process from initial data collection to final presentation of the results. This team consists of: Client services manager, who will serve as your primary source of communication during the project Geographic Information System specialist, who will analyze your trade areas and create customized maps and reports Professionals with backgrounds as retail executives and economic development practitioners, who will address your unique challenges and help maximize Pueblo's retail opportunities Staff Visits During visits to the community, Buxton's staff is able to make clear and candid assessments of the community's strengths, weaknesses and potential. Our daily involvement with over 1,700 retail and restaurant clients in finding optimal locations keeps us current on retail location trends. This provides a rational and analytical basis for helping Pueblo decide how to best focus resources on the most promising retail opportunities. Data Collection Buxton uses over 250 consumer and business databases that are updated throughout the year, and in some cases, every month. Although it is possible to obtain these databases for less expense on a community or regional basis, Buxton buys and is licensed to use the complete U.S. datasets. With this information Buxton will compare Pueblo's potential location to the universe of all retail locations operating in the U.S. The following are some of the more well -known sources used in our studies, but there are dozens more that we employ to provide additional insight: • Mediamark • Acxiom • InfoUSA • Claritas • National Research Bureau • Navteq Geographic Data • Dunn & Bradstreet Business Data M0 Community /9 Identify Market Influencers All communities have special and often unique features that impact the local retail market and have to be taken into consideration to fully understand the market potential of the community. Such influencers include larger ethnic populations, significant new or expanded developments, military bases, universities and colleges, destination tourist attractions, prisons, medical facilities or major employers. After identifying these market influencers in your community, Buxton will quantify and qualify their influence on the retail market and help to match retailers that can capitalize on these customer bases. You will benefit from the project team's expertise and insight in these four areas: 1. Researching and verifying Pueblo's retail trade area 2. Evaluating Pueblo's retail potential 3. Matching retailers and restaurants to Pueblo's market potential 4. Delivering Pueblo's marketing packages These four major components comprise the Community /D® process. Each component is explained in detail as follows: 1. Researching and Verifying Pueblo's Retail Trade Area The location decision process for all retailers begins with the collection, analysis and evaluation of numerous location variables such as demand density, customer buying habits, economic trends, competition, traffic volumes, and available sites, to name a few. The Community/DO process for Pueblo will also start with the in -depth collection of data using the same location variables that we use for our retail clients to qualify sites for the location of their retail stores and restaurants. One goal is to define current retail situations in Pueblo, in the trade area and in any neighboring communities that impact on Pueblo's retail environment. The other goal is to understand the community's expectations and desires. This analysis includes personal visits to the community, collection of data components necessary to conduct the analysis and identification of market influencers. Buxa �Mc_ ME Community /9 Drive -Time Trade Area Definition Customers today shop by convenience, measuring distance based on time, not mileage. Community /D will employ a custom drive -time analysis to determine Pueblo's trade area. An example of a drive -time trade area is shown in Figure1. This custom analysis is developed using an in -house database supported by our knowledge of individual retail client's actual trade areas. The resulting drive -time trade area map will be a polygon that more accurately depicts consumer shopping patterns than trade rings. To assure the accuracy of the drive -time trade area, the draft maps are reviewed with community leaders and verified before proceeding with the next step. Figure 1.Example - Drive -Time Trade Area M Community /U 2. Evaluating Pueblo's Retail Potential The purpose of the evaluation phase is to understand what makes Pueblo distinctive and valuable from a retailer's viewpoint and scrutiny. Our evaluations capitalize on Buxton's knowledge about the retail marketplace and the location requirements and expectations of retailers. Combining this knowledge with our economic development competencies allow us to evaluate and recommend proven community practices. Our evaluations do not rely on dated government research or national /state statistics, all of which fail to reflect local realities. Rather, we implement our real -world experience gained from working with municipalities that have opened more than 15 million square feet of new or expanded retail space. We know how to help Pueblo sharpen your retail marketing strategy, aggressively market the city and improve your competitive performance. Retail Leakage /Supply Analysis The Retail Leakage /Supply Analysis provides an estimate of retail dollars flowing in or out of the trade area. The two main components of this analysis are: 1) current actual sales (supply) by retail store type and products, in dollar amounts, and 2) estimated sales potential (demand) for retail store type and products, in dollar amounts. We first calculate a sales gap index that illustrates your ability to capture your residents' expenditures. An example of this index is shown in Figure 2. The sales gap index provides a relative comparison of leakage /surplus and an estimate of the dollars that are being spent outside the trade area (leakage) and the amount of dollars coming in from outside the trade area (surplus). This report can be run via SCOUT at any location within the map view. Figure 2.Example - Sale Gap Index Burson 10 4'V M'`�t�'. Community/ Customer Profiling The Community /LA process will identify and analyze all the households in Pueblo's drive -time trade area. Based on more than 4,500 categories of lifestyles, purchase behaviors and media reading and viewing habits (psychographics), the households in your trade area are assessed to gain an understanding of the types of retailers that would be attracted to your community. Our in -house databases include both traditional demographic data and the most current psychographic lifestyle information for over 120 million households in the United States (as well as up to seven individuals living in each of these households). Each household in a trade area falls into one of 66 market segments reflecting the buying habits of customers in the household. The blue line in Figure 3 graphically profiles the households in a city's trade area. Figure 3: Example - Psychographic Profile �z asee�ea�anaa�vanat�rneascsmr�mmuaBas�amaaNxa «s�ara�m eamR�ammmeaaese �tY 'W � l OUP R!LOC tl0ll 4 q N'fY' Fd � •�•' '� �. xJ' t t X Al. Wo AIN �z asee�ea�anaa�vanat�rneascsmr�mmuaBas�amaaNxa «s�ara�m eamR�ammmeaaese CommunitylD Retail Site Assessment Buxton will analyze up to three (3) distinct retail locations, selected by Pueblo. Based on our collective experience in retail locations, the following factors are considered: • Psychographic analysis of households in trade area • Demand for retail goods and services • Site setting, situation and configuration • Growth plans and relevant development • Retail goals of the community Pueblo to select the retail site to be used for retail matching. Buxton will develop a demand density profile of Pueblo's trade area. Demand density measures the bottom -line value of the customers in the trade area —who they are, how many there are and what they buy. One of the significant advantages of Buxton is our ability to take the demand density data and to creatively translate it into a proactive market strategy tailored to take advantage of Pueblo's strengths and to achieve its retail goals. 12 MO Communityri 3. Matching Retailers and Restaurants to Pueblo's Market Potential Once the site for retail matching has been selected and the consumer profiles in Pueblo's trade area have been determined, the Community /D� process will match these profiles against the customer profiles of 5,000+ retailers in our proprietary database. In Figure 4, the blue line indicates the customer profile of households in a community's trade area. The red line represents a specific retailer's customer profile. A similarity between the two profiles as shown in Figure 4 analyzed using Buxton's proprietary retail matching algorithm concludes that this site is an opportunity for a specific retailer to open a successful store. This matching results in a list of possible retailers. To develop the preliminary retail match list, Buxton analyzes a number of factors about each possible retailer to qualify it. This analysis is designed to eliminate those retailers that for any reason would not be a candidate for Pueblo. Considered in this analysis are such factors as, verification of a retailer currently operating or expanding into your market, location of operations in similar cities, and competition and cannibalization from nearby locations. Once this analysis is complete, the preliminary list of retailers will be discussed and reviewed with Pueblo. Based on the selections by the sponsor, a final list of up to twenty (20) retailers will be created for the development of marketing (pursuit) packages. Figure 4: Example - Trade Area Consumers Matched with Retailer Customer Profile �k � ®Il2 cmn Y eolerculLaatlm '..��bv°J` c 3 * 3 t^S$f v3' J � i i h i Y 4' c N 1 i t` LWIIL ILAU� n 12 3 •'J 6 i 891UN. 131NnpIT181& RLl1YQ4RT' R4» dDPO49TJ® 91UND 31NXE1JI818 @6DL6S61�91mEID3�C'.� 13 M Communityig 4. Delivering Pueblo's Marketing Packages Buxton will assemble individualized marketing (pursuit) packages for each targeted retailer. At Pueblo's request, Buxton will customize each marketing package for presentation to individual retailers, developers, real estate brokers or potential franchisees. Because it is tailored to the specific needs of the target audience, each marketing package is ready to use as collateral marketing materials providing compelling and precise information that demonstrates Pueblo's qualifications as a location. Each marketing package contains: 1. Map of the retail site and trade area 2. Map of retailer's potential customers 3. Retailer match report that compares the site's trade area characteristics with the retailer's locations in similar trade areas 4. Demographic and psychographic profiles of the households in the trade area 5. Contact information for the person at the retailer who has location decision responsibilities Community /D@ targets not only specific companies but also the individual in the company who has the responsibility for location decisions. To provide the best possible reception when Pueblo contacts the targeted retailer, Buxton notifies each company that Pueblo has been qualified by Buxton as a potential viable location for a store, restaurant or development and should expect to be contacted by a representative of the city. 14 ME Community19 Figure 5: Example - Retail Match Report (Retail Match Report summarizes a city's location advantages for a specific retailer). ` CommunitylD' Retailer Match Repor Company: XY2 Company Site: fare Highway 384 6 Grice load fleport Date: 41IS/2005 Your Community, USA Segmentation Proilelll (IS Minute Drive fime)M aa% M. c 0 w 6K U a< 3% 0 1 t 9 AS @I B 910111]11415 IS I? 419 202122YlNM S4iLA]Olt Yl1LL L9 MYa9at t1HN16NS1Me0 A61AA65A f96i A'A 6091 &AetB5q ® C..Olnpnliy Plonln (00l enl Sagmenle Pn ® Cana ony Pydra. (N Omor S.gmem9l — Site [WIDIM inAe An unt"lim (15 Hine Din line) Your Community , USA SY! Company Site Trade Area Average We Arta 2005 Estimated 2008 Projected Taal Population 43,925 44,596 47,311 Total Hounklds 17,278 12,817 11,903 Retailer Domi Segment Nuwelvolda 9,2 1 4870 13, 612 Daytime (Woriday) Population 19,170 27,160 29,121 MenwnaNen PMIF Feay"S.n Aonol0 is4AAAIIW Info Ono W So Enunrl 9.g•nnlez d. Rd uy BailK Ray[ayfi awma and .pmMv n.nb, d'n11r I.. Orna 4+,9 mu mdonneel9 node amts I'•O9rnennl Mpnwlb An neemad Pei mAl "su9.t Fan IN. paten( Of. alflefe I naod Petra! gffiD BARS). a -rp". nae...pranm alNn M.n.Y Mwllmn 99da are. MLUE LPIE1. ro s Tana M. %YL CPrcarry tram a,.a...on In nx5mosram...9 .prpealan and ,a nl type to Ya Comnun".lx^.A, a'o -ruSA. PegMpur I Annpl9r of p000.. nTpll`a90" draw Una 9tlo.. Bu7ftony Ip.. Cw,mas 15 M0 Community /U DELIVERABLES Community /D� deliverables will be presented to Pueblo in two bound hard copies and in SCOUT ®, an electronic format (described below). SCOUT® is an online marketing system that will allow you to effectively use Community /D� by enabling you to showcase your best retail site to achieve maximum results. You can access Community /DO reports via SCOUT® to reproduce maps, site - specific data and generate your own custom marketing presentations. With SCOUT® you are directly tied to Pueblo password protected data, maintained and updated in Buxton's databanks. Using your computer you can tailor reports and presentations and immediately respond to questions or information requests from retailers or developers. SCOUT® allows you to: • Graphically display and count the households that appeal to specific target retailers • Create a Leakage /Surplus Analysis report for any location in your community • Manage all your retail- specific data, from maps to photos to zoning information, in a central location • Merge your community's existing marketing materials with Community /D° • Select the information that best makes your case • Store and retrieve information on retail buildings and sites • Organize all relevant retail information in a central data center Present all materials electronically to recruit retailers and developers Beginning in the second year, additional retail marketing packages will be available through SCOUT at the rate of five (5) retailers each month until all matches identified in the initial project are delivered. Beginning in the third year, a complete refresh will be provided using updated data. Deliverables include the following: • Drive Time Trade Area Map • Retail Site Assessment — includes Retail Leakage /Supply Analysis and Customer Profile • Retail Match List • Final Report and Marketing (Pursuit) Packages • An electronic presentation highlighting the Community /D� process and findings will be a part of the deliverables. It is designed for local presentations to chambers of commerce, civic clubs and other groups interested in the retail development of Pueblo. Burton 16 CommunitylD VI. PROJECT TEAM Team members for your project will include Buxton personnel with strong retail and economic development backgrounds as well those from operations: the Territory Business Manager, appropriate Senior Vice President and Client Services representative. Robert H. Belcher Territory Business Manager, CommunitylD As a CommunitylD territory business manager, Robert works with municipalities in their retail economic development efforts. By understanding what retailers need to make site selection decisions, Robert enables community leaders to understand and "speak retail." Robert brings a strong knowledge of the CommunitylD retail economic development strategy and a solid background in client service to his position. His focus is communities in Arizona, Colorado and Utah. Robert received his B.A. degree from Texas Tech University. Robert is a member of the International Council of Shopping Centers (ICSC). Amy Wetzel Senior Vice President, Community/D@ Division, Western Region Amy brings more than 15 years of marketing, retail and business development experience to her position. Prior to joining Buxton, Amy held positions with the Colleyville (Texas) Chamber of Commerce, Baylor Health Care System and Andersen. Amy has worked with numerous communities to establish or enhance their retail recruitment strategies and has been a featured presenter at many organizations, including the Association of Washington Cities, the Urban Land Institute, the National League of Cities, and the League of California Cities. She is a member of the California Association of Local Economic Developers, the California Redevelopment Association and the Association of Washington Cities. Amy holds a bachelor's degree in communications from Baylor University. Bu7icco MO Community /9 r7P , , ':' Philip Davis Manager /Senior GIS Analyst Community /D® Division As senior analyst for the Community /D® division, Philip oversees every aspect of Community /D® projects in Buxton's GIS department. His duties include supervising daily operations, working with clients, managing projects and serving as a liaison between analysts and the sales team. Philip has managed the GIS function for more than 350 Community /D® projects for such clients as San Jose, CA; Atlanta, GA.; and Birmingham, AL. Working on projects for two divisions in the company has given Philip a complete understanding of both the retail industry and municipal needs, adding to his expertise in community retail recruitment. Philip graduated from the University of North Texas with a degree in Geography. Bill R. Shelton, CEcD Partner Community /DO Division Bill is a founding partner of Community /D®, Buxton's retail development program for communities. For more than 20 years, Bill worked for the Fort Worth Chamber of Commerce, serving 16 years as its president. He is a Certified Economic Developer and is past chair of the American Economic Development Council. A founding member of the Texas Economic Development Council, he has served as the organization's president. Bill was honored with a lifetime membership to the International Economic Development Council. Bill's professional service also includes serving as dean of the Basic Economic Development Course at Texas A &M University. Bill holds a bachelor's degree in marketing from the University of Texas at Austin, and he completed post - graduate studies at Texas A &M University. BuTxxon 18 CommunitylD' Harvey H. Yamagata Chief Marketing Officer & President Community/DID Division Clients benefit from the expertise Harvey has gained during 35 years in retail, including leadership roles in brick and mortar, catalog and website retailing. His 20 -year career at Tandy Corporation covered the time when the company grew from $350 million to $3.5 billion in sales and took him from retailing in Europe to opening distributors in Asia. He headed the marketing efforts of the RadioShack Business Products division at a time when they held the major share in the burgeoning personal computer market. Harvey received a bachelor's degree from the University of Wisconsin and a master of business administration degree from Texas Christian University. IIE U.` Community19 VII. PROJECT REQUIREMENTS To effectively initiate this project, we request that you provide the following: 1. Project Liaison • Pueblo will designate a project manager who will serve as Buxton's primary contact during the project. 2. Community Information and Reports • City logo (vector file — request your ad agency and /or printer) • Addresses and descriptive information for up to three sites that will be evaluated • Current traffic count data • List of planned retail, commercial or mixed use (either proposed or in development) in the community • List of major, national or regional retailers that have closed, left or moved from the community • General community marketing materials, data and economic reports Project Launch A conference call with representatives of Pueblo and the Buxton Project Team will officially launch the project. The project launch will occur when: 1. An agreement is executed 2. The initial payment is received, and 3. The Community Information and Reports are received 20 CommunitylD® VIII. TIMELINE The following timeline is sequential and cumulative. It starts on the day of the project launch conference call. Business Days Client Responsibilities Buxton Responsibilities Start Provide to Buxton all necessary community information. Day 1 Participate in the launch call. Participate in the launch call. Day 6 Trade Area Map ships. Day 13 Approve Trade Area Map. Day 18 Retail Site Assessment ships. Approve Retail Site Assessment Day 25 and submit selection of site for retail matching. Day 40 Retail Match List ships. Submit selections of all retail Day 50 matches to be included in the Final Report and Retail Marketing Packages. Fay60 Final Report and Retail Marketing Packages ship. By adhering to this timeline, the Community 10 deliverables (Retail Match Reports — both the hard -copy and SCOUT ®, the electronic version) will be sent on or before 60 -days after the launch date. Any missed target dates can delay the final delivery date. If there are extenuating circumstances that prevent target dates from being met, a new timeline will be developed. Delays of more than 45 days in timeline schedule by the community will result in an administrative fee of five percent (5 %) of the contract price to be charged. Bm ton 21 Community /9 IX. FEE FOR SERVICES The Cost of Community /D® is $60,000; payable as follows: 1. $30,000 due upon execution of this agreement 2. $20,000 due upon delivery of retail site assessment 3. $10,000 due upon delivery of retail marketing packages Hard copies of all Community /D® deliverables including marketing packages will be provided. SCOUT° will be delivered for one -year with this agreement and includes the following: 1. Waived - Monthly maintenance fee of $1,000 per month 2. Waived - Set Up fee of $3,000 3. Two Marketing (Pursuit) Packages at no cost After the first year there will be a $1,000 per month SCOUT® maintenance fee. The first year begins upon completion of the project. Pueblo may cancel SCOUT° at any time with thirty (30) days written notice. If cancellation is within the first three years, the $3,000 set up fee will be charged. Direct travel costs will be charged for any pre- arranged, mutually agreed upon travel associated with the project. This does not include travel associated with the presentation or negotiation of this agreement. For services specifically requested by Pueblo and performed by Buxton outside the scope of this agreement, an hourly rate of $200 will apply. Additional Research Services (post analysis) Marketing (Pursuit) Packages (Match reports for additional specific retailers) - Includes two bound hard copies and an electronic version $2,000 22 Community /9 X. SIGNATURE PAGE This agreement is between Pueblo and Buxton (the "Parties ") for the performance of services described in this proposal. The Parties agree that an independent contractor /employer relationship is created as a result of this agreement. Buxton will not be considered an agent or employee of Pueblo for any purpose. This agreement may be terminated by Pueblo at any time upon written notice of thirty (30) days. If this agreement is terminated, Buxton will be paid for services performed up to the date the written notice is received. This agreement shall be administered and interpreted under the laws of the State of Colorado. The special provisions attached hereto are made a part of this agreement. Agreed and accepted this day of 2008. Barbara Vidmar David Glover President of the City Council Chief Financial Officer City of Pueblo Buxton One City Hall Place 2651S laris Drive Pueblo, CO 81003 FortYVortj, TX 76137 n (Signature) (Signs ure) 23 rM Community /9 XI. ENDORSEMENTS /REFERENCES Buxton prides itself on exceptional client service that results in ongoing client satisfaction. Following are just a few of many endorsements from Community /D® clients. B us /,,-Lo 24 1. Fund Availability FinandalLL' obligations, of.Pueblo?payable'efter the current fiscal year are contingent upon funds' foa that - purpose being. appropriated' budgeted, and otherwise made available. 2. Indemnifcation Buxton shall indemnify, save and hold harmless Pueblo, its employees and agents,,' against any 4rd all claims;. damages, .liability and court awards including costs, expenses; and atto'mey fees_,and related costs; incurred as a reult of, any negligent act or omisslonby'Buxton or its employees; agents,• subcontractors, or pursuant to the terms of this contract, 3. Colorado:Govemmental Immun'dv Act . No term..or condition of this contract shall be construed or interpreted as "a muter, express or implied;, of any of the immunities, rights, benefits, protection, or, othar,provisions; of the Colorado ` Govemmental Immunity Act, C.R.S. 24-10 -101 at seq.','or�the'Federal to& Claims `Act, "28 U:S.C. 2671 at seq., as applicable, as now or hereafter amended: ' 4. Independent Contractor Buxton shall' perform its duties hereunder' as an independent Buxton and hot as an employee.; Neither Buxton-nor any agenbor.employee of contractor shall be or'shell be;deemed.to be 'an agent or employee of.Pueblo.' Buxton shall pay when due all required employment laxes:.and income takes omany monies paid byPueblo pursuant to this contrid, Buxton ackn6Wedges °that: Buxton and. its employees ar`e'not , " s entitled to unemployment.insurance' benefits unless Buxton or a "third party ' r idos such coverage and that Pueblo fo`r orotherwise- provide such coverage. Buxton shall have no authorization, "express or .implie`d, `to bind Pueblo to:any agreement, liability or understanding, except as expresslysel forth'.herein. Buxton shall provide and keep in force workers' compensation (and provide -proof of such`in'surance when requested by. Pueblo) and unemployment comp ensationyinsurance In 'the amounts required bylaw and shall be solely responsible for its acts and those of its employees'and;agents 5. Non - Discrimination 'Buxton agrees to Comply v�ith the letter and the spirit`of all applicable State and federal laws_respecting' disc rim and unfair employment practices. 6. - Illegal Aliens .Button certifies that iYshall complywith the.provisions of'C R.S. 8-17.5 -101 at seq. Buxton shall *:n'ot knowingly employ.or contract.with an, illegal :alien,to Worm work underthis' contract, or- enter into, a contract with a= subcontractor' that fails to certify to Buxton that the subcontractor shall` not knowingly employ `or contact with an illegal" alien to perform work under this contract. Buxton` represents; warrants; and agrees that it.(i) has verified that it does not ,employ any illegal allens,•through,�ppoicipati'onin the Basic`;Pilot Employment Verifiication ,Program. , the' Social Security Administration and Department of Homeland:Secirlty,.and (ii) othiiWse`shall ecnipy with'the re `quirements.of C.R.S. 8- 17.5- 102(2)(b).r Burton,shall complywith.all,reaso`nable requests made in the..court of an investigation under C R S:'c8- 17.5 -102. by the Colorado Department of `Labor and , Employment.' Failure to comply with any requirement tof this. provision or CA.S: 8- 17.5 -101 et' seq.; shall be cause for termination for breach and Buidon shall be liable for actual and consequential damages:' 7. Notices Any: and, ali,notices or other communications required or permitted b this Agreement or by law.to be served on oc;given to ;either ,Bu`xton or Pueblo by the other party shall be in writing and; shaiLbe deemed duly served`,and given when personally delivered to the party to whom it is directed, or in lieu'of such personal' service, when deposited in the United States mail, first -class postage prepaid, %addressed to�Pueblo,. 1 City Hall Place, Pueblo, CO, 61003, Attention: City `Manager; 'or, to _Buxton" at 2651 S. Polaris Drive, Fort Worth, TX, 76137, Attention:- Chief. Financial'.Officer." Either party may change his address for the purpose of this paragraph by given written notice of such change to the other party in the manner provided in this paragraph. B. Entire Agreement ' This instrument contains the. entire agreement, between Buxton and Pueblo respecting'subject;matter here of, and;any other written or oral agreement or representation respecting the subject matter hereimorthe duties of either City or Buxton in relation thereto not expressly set forth in this instrument and.its,atiachments is null and void. 9. Successors -'and Assions This ;Agreement ` be binding on the: parties hereto and on their successors and. assign 1 1 pro vided,;however, neither this Agreement; nor any part thereof, nor,any, morays due or to become due hereunder to Buxton may be assigned by it without the:written consent of City 10. Amendments ,No amendment; to, this,-Agreement shall be made nor be enforceable unless mad6:by.wntten instrument,signed'by an-authorized representative of Buxton and by City. 11. Choice of Law This Agreement shall be' 'governed and interpreted in - accordance with the laws of the State of.Col ,rado without 'regard to conflict or law principles. r ' 12. Severalji f . `if .any provision "of this Agreement is determined to be invalid or - unenforceable, such determination shall not affect the remaining pr'Visions which shall remain in force and effect. I V ,I