Cincinnati Downtown Strategy RETAIL ACTION PLAN Department of Community and Economic Development MAYOR John Cranley CITY MANAGER Harry Black DIRECTOR OF COMMUNITY & ECONOMIC DEVELOPMENT Oscar Bedolla COUNCIL MEMBERS Vice Mayor David Mann President Pro Tem Yvette Simpson Kevin Flynn Amy Murray Chris Seelbach P.G. Sittenfeld Christopher Smitherman Charlie Winburn Wendell Young DEVELOPMENT AND DESIGN PROFESSIONALS Chad Munitz, Towne Properties Kelly Kolar, Kolar Design Steve Kenat, GBBN Carrie Boyd, M+A Architects Adam Gelter, 3CDC Danny Lipson, 3CDC RETAIL BROKERS AND CONSULTANTS »",#- "., ~ »/-"' ( „ % q & Kathleen Norris, Urban Fast Forward ,,3 "(' #-~ »/-"' ( „ % q & Alex Sale, Colliers Demetri Sampanis, CBRE Tori Sunderman, CBRE RETAILERS Jason Williams, Macy’s Chuck DiGiovanna, Macy’s Susanne Halmi, Tiffany & Co. Kevin Shibley, Saks Fifth Avenue Sherrick Davis, Jos. A. Bank Jeffrey McClorey, Bromwell’s Independent CBD Retailers 2 CENTRAL BUSINESS DISTRICT STAKEHOLDERS David Ginsburg, Downtown Cincinnati, Inc. (DCI) Mindy Rosen, DCI Cate Douglas, DCI Tricia Suit, DCI DCI Executive Board Karen Seiter, Fifth Third Bank Carl Goertemoeller, Macy’s Retail Committee, DCI Marketing Committee, DCI Urban Experience Committee, DCI Dan Lincoln, Cincinnati Convention and Visitors Bureau Cincinnati Convention and Visitors Bureau Board of Directors Jason Kershner, Cincinnati USA Regional Chamber Paul Muller, Cincinnati Preservation Association Downtown Residents Council CITIES Heidi Tirjin, Lower Merion Township, Pennsylvania Andi Pratt, Downtown Seattle Retail Program Manager Brandye Merriweather, Buffalo Urban Development Corporation COMMUNITY & ECONOMIC DEVELOPMENT SENIOR STAFF Bill Fischer Daniel Fortinberry Monica Hardman Greg Huth Megan Ryan Sam J. Stephens Holly Stutz Smith ADDITIONAL CITY STAFF Matthew Andrews, Department of Transportation and Engineering (DOTE) Diego Jordan, DOTE Laura Martin, DOTE Lisa Bambach, DOTE Katherine Keogh-Jurs, City Planning James Weaver, City Planning Shaoli Huang, CAGIS Jim Flick, DCED Philip Denning, DCED LETTER FROM THE DIRECTOR 4 DOWNTOWN SNAPSHOT 5 INTRODUCTION 6 COMPONENTS BUILD ACCESSIBLE DATA 9 INVEST IN PLACE 12 GET SMART ON RETAIL 17 UNIFY THE MESSAGE 24 IMPLEMENTATION AND EVALUATION 26 Spots supporting high-rise multi-family development and investment - think ... Fountain Square in Cincinnati “ q. ." description of the kind of walkable, amenity laden neighborhoods that support high street retailing. PWC Emerging Trends in Real Estate, 2016 3 Letter from the Director Oscar Bedolla DIRECTOR Department of Community & Economic Development 805 Central Avenue, Suite 700 Cincinnati, Ohio 45202 P 513-352-1948 oscar.bedolla@cincinnati-oh.gov Cincinnati’s urban core is thriving. With vacancy rates trending downward, population growing and a dynamic riverfront, downtown is booming. In the wake of this unprecedented growth, now is the time to position Cincinnati for long-term success by continuing to cultivate development and identifying the necessary steps to perpetuate this evolution. The Department of Community and Economic Development (DCED) has set out to create a comprehensive downtown plan that examines the sectors of our Central Business District and their respective roles in supporting a healthy mixed-use urban core. A new, collaborative downtown approach will maximize this economic resurgence. Essential to achieving this objective is a cohesive and tactical downtown Retail Action Plan that recognizes the changes in our urban core, as well as dynamic trends in the retail industry. To that end, in working with strategic partners and key stakeholders, we have created a downtown Retail Action Plan that responds to these developments and provides for sustained growth. In developing this approach it is our intent to establish a blueprint for a vibrant retail market that meets the needs of downtown residents and serves as a tool of attraction for visitors and guests. The creation of this Retail Action Plan is made possible with the help and feedback of countless stakeholders, including small and large retailers, brokers, real estate professionals, and others. These individuals and organizations will continue to play a crucial role in securing a bright future for our urban core through the implementation of this Action Plan and in their constant work to cement downtown as the nexus of our thriving region. With this thoughtful, strategic approach toward moving retail forward, I believe we can and will cultivate a stronger downtown. L. Bedolla Oscar L 4 $ 698 Million INVESTMENT $698 million in developments currently under construction in CBD 9 + ‘11 ‘15 HOTEL ROOMS Increase in number of hotel rooms in the Central Business District between 2011 and 2015 % ‘00 ‘10 98 % ‘15 GROWTH ‘20 9% projected increase in CBD households by 2020 2,392 Construction 32 % Planned NEW HOUSING 2,392 Residential units under between construction or planned for CBD between 2015-2017 WALKABILITY 98% Walk Score, Downtown Cincinnati 38% of CBD residents walk to work $ 77,143 ‘15 ‘16 ‘17 ‘18 ‘19 INCOME Estimated Median Household Income projected to rise by 15% through 2019 5 Pieces of the Downtown Puzzle All sectors of the downtown economy are connected and dependent on one another. This Retail Action Plan will be followed by focus from DCED on -# (.# &~ q ~ ,%#(!~ ( #2 Use development types. The Role of Retail in an Urban Evolution In downtown Cincinnati, residential development has momentum, hotel 0 &)*' (. #- ))'#(!~ ( ) q and convention markets are strong and getting stronger. Downtown is safer, cleaner, and more accessible than ever. The neighboring Over-the-Rhine (OTR) and Banks districts, once liabilities for downtown, are thriving. Restaurants, bars, and entertainment venues continue to CBD RETAIL SHOPPING LOCATIONS, 2015 6 open and succeed. This momentum has led to a population increase in the urban core and the establishment of downtown as a place of choice for entertainment, dining and shopping. This growth and momentum hugely impacts the future role of retail in downtown Cincinnati. How can we retain our existing retail businesses? How can we attract new businesses? Tackling the challenge of urban retail is more complicated than simply “rooftops follow retail”. We cannot overstate the importance of respecting all stakeholders and using a strategic approach to create a lively retail environment that suits the needs of residents and visitors alike. GOALS OF THE RETAIL ACTION PLAN 1 Continue to support existing retail businesses as the core of our urban retail environment. 2 Develop solutionoriented policies and activities to -)&0 , . #&“-* #q challenges in the CBD. 3 4 Create a healthy and vibrant streetlevel environment in our urban core. About this Action Plan An Action Plan cannot be developed or implemented in a vacuum. Collaboration 1#." *,#0 . ~ ()(*,)q.~ ( */ &# stakeholders will leverage their expertise in implementation. Each component of this Plan has -* #q implementation assignments, responsibilities, and timelines with critical tasks and a focus on short-term action. Downtown Cincinnati, Incorporated š » › ()(*,)q. ),! (#4 .#)( " ,! with the mission to “build a dynamic metropolitan center valued at the heart of the region” will be a crucial partner in implementation. " ) , ) » " - , (.&3 # (.#q retail development as a key component to an enhanced downtown user experience that complements their “safe, clean, and beautiful” initiatives. Recognize the connection between development sectors to build a multi-faceted and stronger downtown. 5 Catalyze retail offerings that appeal to the diversity of the Cincinnati market by providing small and unique business opportunities. A number of studies, plans and vision documents have preceded this Retail Action Plan. Rather than working in isolation, City staff completed a comprehensive review of past work, national trends, and best practices research. This and other supplemental information can be found in the accompanying appendix of this document. Plan Cincinnati ( -/ " *& ( ." . #(r/ ( )/, Action Plan is Plan Cincinnati. This comprehensive plan for the City of Cincinnati, adopted in November 2012 by the Cincinnati City Council, is the road map for the future of our City. To maintain the City’s strategic direction for moving forward, projects and activities are frequently assessed to understand their alignment with the priorities of Plan Cincinnati. 7 This downtown Retail Action Plan aligns with the “Compete” initiatives of Plan Cincinnati, including Goal 1 “Foster a climate conducive to growth, investment, stability, and opportunity” and Goal 2 “Cultivate our position as the most vibrant and economically healthiest part of our region.” For more information, please see http://www.plancincinnati.org. Why Retail? Why Now? Over the past few decades, the retail market has been massively impacted by changing national and local trends working to adapt to consumer online shopping habits and the rise of omnichannel retailing. Since 2000, ecommerce has grown from *1% of total retail sales to 7.5% in 2015. These trends coincide with stagnant growth in regional malls and slowed development of big box stores. This has led retail businesses to develop ( 1 1 3- .) q( ( #(. , . 1#." customers, including a new generation of consumers shopping with their mobile phones. Experience-oriented retail is on the cutting edge of new strategies to attract customers, and big-box retailers are even experimenting with small, urban stores. Some of these trends will provide opportunities for a new generation of retail that combines bricks and mortar locations with a strong web presence. Locally, new retail businesses are occupying small footprints and creating unique experiences with greater impacts and lower costs. One challenge in Cincinnati’s urban core is related to available space and helping locally-based retailers become established. Meanwhile, a competitive advantage of downtown *Source: U.S. Census Bureau, Quarterly E-Commerce Report 8 #- -"# .#(! ., ( 1"# " q( - , . #& ,- increasingly attracted to mixed–use and amenity-rich locations. Similar to other mid-size cities, Cincinnati’s food and beverage and residential development industries have momentum. Our competitive advantage includes growth opportunities for small shops searching for ways to grow their businesses. Retail is a crucial component of this opportunity. This Retail Action Plan was developed in response to these trends, offering a fresh perspective on downtown retail informed by expert knowledge and stakeholder engagement. It includes two the fundamental elements of retention and attraction. Retention Efforts are already underway to retain existing retailers, some of whom have been located downtown for decades. Existing CBD retailers have had a role in shaping this Action Plan. In partnership with DCI, DCED has taken an actionoriented approach toward engaging, listening and understanding existing retailers. Attraction The four components of this Action Plan were developed through conversations with developers, retail brokers, design professionals, downtown partners and retailers. The four components are: I. II. III. IV. Build Accessible Data Invest in Place Get Smart on Retail Unify the Message The availability of timely, relevant, and accurate data plays a crucial role in communicating the advantages and momentum of the CBD. That means putting useful data into the hands of real estate professionals, brokers, property owners, agents, and potential business owners to help them understand market opportunities and characteristics. In the past, cities have advocated broad data creation and management. Today most data, such as demographic information, is already available to retailers. Rather than emphasizing ubiquitous data, this Action Plan recommends a focus on enhanced levels of data not available to retailers. The City, DCI and other partners will create focused and useful data along with other tools for messaging and analysis. Inventory Available Property Summary An online, interactive map will be developed to catalogue available streetlevel retail (and in some cases, skywalklevel), restaurant, and service-oriented spaces. This catalogue will include information such as square footage and price per square foot, contact information, adjacencies, plans, and photos. It will utilize unique market knowledge to display “shadow” properties that may be available but not listed. The inventory will aggregate key information into a central, digital location. Implementation Currently, DCI and the Over-the-Rhine Chamber of Commerce maintain similar information for the CBD and Over-theRhine, respectively. Implementation will begin with information provided by DCI and supplemented by the City as necessary. Other sources of information may include Loopnet, Xceligent data, stakeholder market knowledge, or local retail brokers. The listing of available properties will be utilized by DCI, the City, and other partners (e.g. embedded in stakeholder websites) to use in communicating streetlevel opportunities for attracting and locating new businesses. DCI, in partnership with the City, will play a central role in keeping this data accurate and up-to-date. Utilization of this catalogue will be measured and reported annually and should include monthly visitors, as well as the number of property inquiries. Information from this database, such as a hierarchy of available retail properties, may be utilized as a recruitment tool locally or at the International Council of Shopping Centers annual (ICSC) conference. Timeline Development of this tool will be complete by the end of 2016. Updates Data will be updated in real time. 9 Create a Momentum Map Summary Create a standard graphic tool for communicating development activity. This momentum map will include activity in all sectors of the CBD, including retail, ) q ~ , -# (.# &~ * ,%#(!~ . } . 1#&& )''/(# . /,, (.~ , (.~ ( *,)*)- development activity. Implementation DCED will create an online interactive momentum map for quickly and accurately describing the volume and typology of development projects in the Central Business District. The momentum map will include the following: • Data from the previous 1-2 years of development activity. • Current construction activity. • Forecasted data from planned/ proposed projects. • The ability to view the data according to sector (residential, '#2 /- ~ ) q ~ . }› BEST PRACTICE: DEVELOPMENT ACTIVITY TOOL 10 The map is intended to be proactively shared with stakeholders and developers. It will be hosted online and available in digital format to facilitate sharing and communication. Timeline Conversations with CAGIS are already underway as of May 2016. DCED aims to launch the map in 2016. Updates The momentum map will be updated at least quarterly. Generate Enhanced Data Summary To support retail investment and recruitment, generate new data useful to retailers, real estate professionals and brokers. Focus on generating data not currently or generally available. Implementation DCED, in partnership with DCI, will be responsible for implementing this task. » ,. #( . ( q # (.&3 )&& . by City or DCI staff while other data may require a consultant or contribution by a partner or stakeholder organization. As a means of discovery, DCED will proactively work with stakeholders, including retailers, brokers, developers, or experts to solicit suggestions or requests for useful data. DCED and DCI will be responsible for feeding the new data into marketing and other recruitment efforts. Examples already solicited from stakeholders include: ƒ -.,# ( ., q )/(.- )( ‰.) order” basis. • Sales-per-square-foot information by category or within areas. • Residential permits pulled. • Growth in tables at restaurants. • Growth in rooms at hotels. • Convention and tourism-related data. • Hospitality data, luxury and average. • Safe/clean, perception data. • Focused comparison data to peer cities and their downtowns. • Entertainment data. • Establish point of contact for data and information needs, a custom service rarely available in municipalities. In addition to quantitative data listed above, local expert retail brokers have suggested qualitative data, such as anecdotal quotes (anonymous, if necessary) from retailers in downtown and Over-the-Rhine. These quotes might serve useful in ICSC marketing materials. Steps DCED, DCI and implementation partners will proactively solicit feedback from retailers, brokers, developers, and/ or experts about new data that should be generated. After data points are # (.#q ~ » ( » 1#&& (-/, ." collection, compilation, and release of this data. Updates The City, DCI and other stakeholders will keep data up-to-date. 11 " -/ -- ) )1(.)1( - , . #& &) .#)( #- #(r/ ( 3 ." +/ &#.3 ) ." place. A safe, clean, beautiful and walkable urban experience is the “price of entry” to additional development and vibrancy. These goals can be challenging in the CBD where property is owned and managed by numerous entities. Future investment in downtown should be driven by a thoughtful, systemic action plan taking into account the impacts of infrastructure and streetscape investment on the urban experience. Consensus among key stakeholders will be important for ensuring consistency and leveraging investment. Priority Development Opportunities Summary Identify priority sites and properties which present major opportunities for investment in the CBD. Catalogue these opportunities in a central, online, accessible location. Priority development opportunities include retail businesses, or any other vertical or '#2 “/- 0 &)*' (. #( ." »Ï ~ #( &/ #(! , -# (.# &~ "). &~ ) q ~ ), )." ,-} Implementation Priority development opportunities will be compiled and communicated in a manner similar to the momentum map (Build Accessible Data). It will take the form of a graphic tool utilized by DCED to clearly communicate information about these opportunities in the CBD. Sites need not be City-owned in order to be listed as priority development opportunities. Possibilities include vacant structures, underutilized land (such as parking lots), or other good prospects 12 for development activity. This tool will encourage focused attention from the City and private developers. Timeline Development of this tool will be completed by the end of 2016. Updates This tool will be updated semi-annually 3 » -. .) , r . , (. developments and accurate information. Outline Infrastructure Opportunities Summary Stakeholders and development experts have drawn connections between the condition of the urban environment in the CBD and retail activity. Investment and improvement in the urban environment will yield a positive impact on the ability of , . #& ,-~ & ,! ( -' &&~ .) -/ } " , ), ~ ." »#.3 q( - #. ( -- ,3 .) )/.&#( opportunities for investing in right-of-way infrastructure to satisfy public needs while also being responsive to business and community concerns. Implementation The content of this deliverable will be primarily housed within the City’s Department of Transportation and Engineering (DOTE) in consultation with other City departments and other ongoing processes. The scope of the outline will encompass public space and rights-of-way in downtown. This deliverable is envisioned as a living concept plan for outlining future infrastructure investments in downtown. As part of the creation of this Outline, external stakeholders will be engaged by DOTE to solicit feedback and information about infrastructure opportunities from the business community and community at large. Opportunities may be categorized by the type of intervention, including, for example: ƒ , q -#!( &#(! &. , .#)(-} • Travel or Parking lane alterations. • Pedestrian infrastructure alterations (e.g. sidewalks, paving, crosswalks, etc.). • Street tree and landscape enhancement. • Street furniture addition/removal. ƒ , q #, .#)( ), r)1 " (! -} • Transit facility improvements (e.g. bump out). • Skywalk maintenance or demolition. • Bicycle Infrastructure. • Lighting enhancement. ƒ 3q( #(! -3-. '-} • Technology solutions (e.g. information kiosks). • Use of technology solutions. • Third party use of public right-ofway (e.g. sidewalk dining). • Parking (on- and off-street). • Additional interventions, to be determined. Each opportunity will be assigned a hierarchy for implementation (e.g. quick win, mid-term, long term). When combining hierarchy and location the outline will provide a mechanism for assigning priority to these investments. One example of this process is the skywalk system. While certain portions of the system play an important role in the CBD pedestrian infrastructure and include retail businesses, other portions are in disrepair or even detract from the vibrancy of the pedestrian environment. The outline will designate those portions that will remain and be maintained, and those that are good candidates for demolition. As part of business retention, economic development, or real estate development projects initiated by DCED, an Infrastructure outline will leverage public 13 and private investment to accomplish long-term goals for the public right-ofway. Project priority can be utilized by DOTE, DCED, and other departments and with external partners to maximize and catalyze development impact. More broadly, it will also insert more predictability into investment in downtown. When coordinated, these changes will have a meaningful impact on the urban environment. As implementation continues, DOTE may devote more resources to feasibility and planning of individual projects. "#- )/.&#( #- (0#-#)( - r 2# & tool. At times, infrastructure investment suggested by the outline will precede or even take place independent of other development activity. In other situations, the outline will provide opportunities for leveraging investment precipitated by real estate development projects. With the understanding that funds dedicated to these investments are limited, the outline will also discuss the need for a long-term maintenance program for special improvements, particularly when such responsibilities are (). ) #q 3 ." »#.3Œ- /(# #* & ») } Regarding funding, DOTE, DCED and other departments will examine and pursue the creation of a downtown infrastructure fund for capital #'*,)0 ' (.- -/ " - .")- # (.#q 3 the infrastructure outline. 14 Timeline By the end of 2016, DOTE will create q,-. , . ) ." #( , -.,/ ./, opportunities outline. Further in the implementation process, DOTE will determine a timeline and set realistic milestones for the development of the outline. Updates This tool is envisioned as a living document that will be frequently updated and adjusted based on new information, development activity, public investment, and a variety of other factors. Redesign the Urban Experience Summary The City of Cincinnati, in partnership with DCI’s Urban Experience Committee, will create a plan to redesign the downtown experience through strong urban design principles that leverage and enhance downtown’s walkability. DOTE will have a central role, in collaboration with DCI and a cross section of downtown stakeholders. These community representatives will include, but not be limited to, business owners, retailers, the downtown residents council, and developers. The results of this plan will be a set of standards or recommendations to be acted on by both public and private entities. Elements of streetscape typology, transparency requirements, façade and tenant improvements, awnings, materials, canopies, 1 3q( #(! -#!( ! ~ &#!".#(!~ ‰* ,%& .-~Š */ &# * ,%#(!~ */ &# ,.~ . } 1#&& && considered. The recommendations will coordinate with code enforcement and align with City plans, municipal code, right-of-way regulations, and processes. Implementation This effort will be led by the DCI Urban Experience Committee in partnership with DOTE and DCED. The committee has mapped out future phases of a work plan, including an audit of the current urban -., . " , . ,~ # (.#q .#)( ) -. practices, and recommendations for and ." # (.#q .#)( ) */ &# ( *,#0 . funding strategy. Public input will also play an important role via design thinking workshops, charettes, brainstorming, and focus groups. Participation and buy-in from various City departments tasked with maintaining and planning for the urban core will be crucial to implementation. DOTE, for example, is already well underway with research, developing an inventory of, and strategizing for the implementation of downtown pedestrian 1 3q( #(! ( # (.#.3 #'*,)0 ' (.-} Part of the strategy is to organize public engagement sessions to better understand community needs. In addition, existing City resources (e.g. CAGIS) may serve as useful input throughout the process. City staff will work collaboratively to fold this work into DCI initiatives. The ultimate outcome of the work and dialogue between stakeholders will be a set of standards and recommendations that take into account the complexity of the urban environment. " - )* š &)1› 1#&& , q( ( revised as more details unfold. 15 Task 1: Audit & Analysis Continue inventorying the existing urban experience, including the presence of signature street character elements: • Retail signage/awnings ƒ 3q( #(! • Maps • Materials • Landscaping • Lighting • Furniture • Green space and “parklets” • Bicycle facilities and infrastructure • Transit • Parking facilities • All signage and pedestrian systems. The inventory includes examining and documenting the physical characteristics of each distinctive urban area or retail corridor (i.e. Vine Street, 6th Street, Fountain Square, Lytle Park, etc.). Task 2: Strategy and Recommendations The goal of this task will be to gather input from the DCI Committee, key retailers, the general public, and visitors. (*/. , #0 1#&& q( % 3 *#&). *,)$ .- &)(! 1#." -* #q / ! . estimates, funding resources, and key stakeholders. 16 This may include the following: • Host a charette/brainstorm session, as well as facilitate visitor focus groups. • Develop recommendations for the assessment of the new urban experience guidelines, taking into account existing situations and recommended improvements, and high level budgets. Steps As of May 2016, the DCI Urban Experience Committee is planning for Task 1. DOTE is mobilizing to collaborate with other City departments and outside stakeholders, and will participate in charettes and information gathering. Upon completion of the work, the Urban Experience Committee will present a report or recommendations to the City. The City will review those recommendations, and take steps to incorporate them into City projects, practices, and plans, as much as is feasible. Market forces primarily determine the location of new retail establishments. However, innovative new programs and personnel created in consultation with downtown stakeholders can catalyze future retail investment. Results include increased street vibrancy and activity, an enhanced customer experience, new business opportunities, more jobs, and increases in sales and tax revenues. The City and DCI will work to explore creative programmatic solutions and implementation strategies that are practical and effective. Program offerings focused on retail are small but impactful tools. Other neighborhoods in the City, and many cities across the nation, utilize similar programs. Proper implementation is crucial to the success of these initiatives. The goal of these offerings is to create a critical mass of supportive retail downtown. Establish a Retail Recruitment Specialist Summary Partner with DCI to vet the creation of a retail recruitment specialist to identify, attract and connect retail opportunities within the CBD. This tactic has been implemented in other cities and will focus and coordinate efforts. It will also facilitate the retention of existing retailers and act as a service to property owners. DCI is well positioned to be ( ./, & q. ), #'*& ' (. .#)( ) ."#- #(#.# .#0 } Implementation: Collaboration between DCI, the City, and other stakeholders in the commercial real estate market is key in designing the retail recruiter role. In previous work by Urban Fast Forward, a local consultant specializing in urban real estate, a number of recommendations and solutions were proposed as a result of a process that included numerous downtown retail stakeholders. Those recommendations built the foundation for this recommendation but have been /* . ( , q( } Four components of a retail recruitment strategy are necessary: • Merchandise Mix • Focus Area • Recruitment Process and Staff • Recruitment Tools Merchandise Mix Past studies, consumer research and stakeholder input will determine the mix of retail which the recruiter will target. Priority will be given to unique retail and to diversity, both in terms of the target businesses and customers served. 17 DCED will leverage the expertise of retail brokers, developers, and real -. . *,) --#)( &- .) q( ( # & merchandise mix. The mix will outline retail targets and prioritize recruiting activities for the retail recruiter. As necessary, the mix will be reevaluated, at least annually, to ensure that it stays relevant and responds to market trends, consumer preferences, and activity. Recruitment Area Past efforts, in Cincinnati and elsewhere, have included the development of “districts” (e.g. “Vine Street Entertainment #-.,# .Š›} 0 , .#' ~ ." - ( )(r# . with market forces or changing trends. The recruitment program will consider the entire center city, from the Banks through the CBD to Over-the-Rhine. It will work with stakeholders to shape focus areas and ensure density and critical mass. 18 Recruitment Recruitment will work best if the process #- /(#q /( , )( *)-#.#)(~ , . #& recruiter, whose full-time job description is to pursue, educate and encourage local, regional, national, or entrepreneurial, and independent retail businesses to locate in downtown Cincinnati. Such a position will require a clear message, appropriate support and marketing tools, a healthy and collaborative working relationship with the commercial real estate )''/(#.3 ( -* #q 1),%“*& (} Tools Newly created programmatic offerings will add cache and incentive to retail businesses contacted by a Retail Recruiter. These tools will clearly state q( ) $ .#0 - ( - . ( "' ,%- for analysis and performance. One such tool that can facilitate retail development is an example work letter to be shared with downtown building owners. This real estate transaction document typically describes how a space will be delivered by the building owner to potential tenants. A work letter often includes standard information about the subject space, as well as typical terms and helpful information. With many vacant street-level spaces owned by a wide variety of owners, some of whom don’t have much experience in working with new businesses, a retail , ,/#. , ' 3 q( #. " &* /& .) ,#(! template work letter to the table as a means for collaboration and cooperation with building owners. In addition, many owners do not have the experience or capacity for understanding what resources or expertise is necessary to get to a ready-to-lease real estate space. A retail recruiter may leverage downtown relationships to educate building owners about this process. Moving Forward DCI and DCED will work with real estate brokers and professionals to further q( ." , ,/#.' (. ') &} "#- 1#&& include collaboration with retail brokers to delineate the relationship between a Retail Recruiter position and the retail brokers and other stakeholders who are active in the downtown retail market. Timeline The design of a retail recruiter position 1#&& !#( #( u usty ( q(  3 the close of 2016. 19 Creative Retail Programs Summary Program offerings focused on street-level and retail businesses are utilized by City neighborhoods and other cities across the nation. The goal of these offerings is to create a critical mass of supportive retail downtown. When appropriate, City resources associated with programs will be leveraged based on matching funds or similar strategies, and invested funds will be carefully tracked and monitored to ensure they are achieving results. The City will work with stakeholders to explore creative programmatic solutions for attracting retail and street-level businesses to stay, relocate, or start in downtown Cincinnati. POP-UP PROGRAM Vacant storefronts are prevalent throughout the CBD. They are counterproductive to the goal of creating a more vibrant street-level environment. The term “pop-up” typically refers to a retail, restaurant, event or other business which opens for a short period of time in a vacant space. In downtown Cincinnati, ." ( q. ) &)1 ,#-%~ -"),.“. ,'~ affordable space can apply to retail as well as any street-level use. Ï ( q.- ) ." *)*“/* ') & ), businesses include: • Vetting a new business idea. • Research and testing the market. • Test driving a brick and mortar storefront. • Capitalizing on seasonal trends. • Flexibility not offered by traditional leases. • Affordable space for manufacturing, collaborating, selling, or starting a business. Ï ( q.- ) ." *)*“/* ') & ), downtown include: • Activation of vacant spaces. ƒ ( , - * -.,# ( ., q } • Connecting landlords with potential long-term tenants. 20 • Providing low-risk, temporary space for business and job growth. • Positive media attention. • Potential growth of new businesses. There are numerous possibilities for locating such uses in the CBD. One possibility includes vacant City-owned assets. However, a wide array of buildings 1#." 0 ,3#(! )1( ,- '#!". ( q. ,)' a program aimed at the short term occupancy of vacant space. Research and Best Practices Research has revealed pop-up programs in places as diverse as Dayton, Norfolk, Brooklyn, Portland. Inspiration has also been drawn from large companies in the , . #& - .), ')(-., .#(! r 2# #&#.3 ( pushing boundaries with internal pop-up and retail mashup concepts, including Macy’s and Whole Foods. In 2008, the Brooklyn Flea started small. After success, it expanded into other events (such as the food-focused Smörgåsbord). It grew into a permanent q2./, #( ." , . #& ( -' && /-#( -- scene. Cincinnati’s City Flea launched in 2011. The once-a-month market connects small vendors with shoppers and provides cultural, social and economic value. The City Flea is an asset for the small retailing vacant spaces are frequently noted by retail brokers and landlords as barriers community. .) , 0 &)*#(! 0 (. -* - ), q( #(! suitable tenants. Retail businesses do However, small retailers and other types (). .3*# &&3 " 0 -/ q # (. , -)/, - .) ) /-#( -- - -.#&& " 0 .,)/ & q( #(! --# & ~ ), & ~ ( r 2# & -* - address code issues, and landlords are hesitant to invest in vacant spaces without in which they can create, expand, make, tenants lined up. and nurture their small businesses with relatively low risk. A Pop-Up program will provide a . '*), ,3 q2 ), ."#- ‰ . "“uuŠ Some cities start small and grow their programs over time. This may be a useful scenario. Solutions might include a simple application which streamlines the approach for Cincinnati. permitting process, the establishment of “grace periods” for Pop-up uses, or other Implementation solutions. This element of the program The City will create a pop-up program. )/, *,)!, ' * , ' . ,- 1#&& q(  will be created in collaboration with the Buildings and Inspections Department. 1 Program Goals and Description 2 3 4 Stakeholders and Partners Data, Spaces and Location Resources 1. Program Goals and Description ( q(#(! ." *,)!, '~ » 1#&& establish goals of the program, identify +/ &#q .#)(- ), * ,.# #* .#)(~ -/!! -. potential participants, delineate the program process, draft a program application, and create a program brand. The primary goal of the pop-up style program is to activate vacant spaces through business, art, shopping or other activities. There are numerous potential program participants. These include short term retail stores, creative entrepreneurs, local -' && ' (/ ./, ,-~ q,-.“.#' /-#( -- owners, artists or art installations, or a large variety of other uses. An important element of the program will outline solutions to issues related to the building code. Code violations in Past conversations with Retail brokers " 0 (). ." ( q.- ) &/-. ,#(! pop-up activities in the Central Business District, e.g. a retail incubation corridor. This and other possibilities will be explored during program design. When creating the application and considering the bandwidth of DCED to manage a pop-up program, DCED will consider whether the program will be yearround or focused on a smaller time period such as the holiday season. In addition, * ,.# #* .#)( +/ &#q .#)(- 1#&& 1 #!" r 2# & &#!# #&#.3 , +/#, ' (.- ! #(-. more competitive program selection. When designing the program, DCED will create and vet a brand, including a name, logo, and color palette. The brand of the program will spread awareness, )''/(# . r 2# #&#.3~ ( '*" -#4 motion and action - all principles of the Retail Action Plan itself. 21 Other technology tools may play a role in supporting the program. Kinglet is a business on the cutting edge of real estate brokerage and is a relatively new addition to the Cincinnati market. Such tools might complement the pop-up program. 2. Stakeholders and Partners More than a dozen local organizational stakeholders may have interest in a popup program. These stakeholders will be made aware of the program. They may serve on the front lines for connecting businesses and entrepreneurs to the program. 3. Data, Space, Location A number of different spaces in the CBD are good candidates for this program. " q,-. -. * .) , .#(! &#-. ) *). (.# & pop-up spaces is the inventory of available property, spearheaded by DCI. Once this inventory is complete and the program has been designed, landowners will be contacted to ascertain their interest. As previously noted, City-owned assets might be good for testing or piloting the program. The City will also collaborate 1#." ),“*,)q. ( ()(“*,)q. )'* (# - to identify spaces suitable for the *,)!, ' - ' (- .) q&& 0 (. -* -~ stimulate demand, and bringing vibrancy to downtown assets. As news of the program spreads, DCED will also explore collaboration with other landowners with suitable space. 22 4. Resources Implementation of this program will require a stream of funding. While creating the program, DCED will identify funding needs, potential sources, and likely uses. Research will also be completed to understand if philanthropy (including grants, donations, technical assistance, or other funding streams) can play a role. Many cities leverage temporarily donated space from building owners to save resources. In return, building owners gain access to potential future tenants. / .) ." r 2# & ( ./, ) ." *,)!, '~ DCED will also establish metrics examining appropriate amounts of investment in a project in City-owned spaces versus projects in privately held property. In privately held property, careful attention will be paid to monitoring the investment to ensure that City funding is not being abused. Timeline Á q( & *)*“/* *,)!, ' 1#&& -#!( ~ written, approved and in place by August 31, 2016. STRUCTURED PROGRAMS Overview In addition to a pop-up program, the City will investigate and vet the applicability of additional City programs focused on retail and street-level businesses. Such incentives or programs will be predictable, easy to understand, and focused on the CBD. They will involve fair implementation across different projects and be simple for City staff to track and enforce. Programs will provide appropriate incentive at relatively low investment and risk levels from the City’s perspective. DCED, in partnership with DCI, will continue to engage small retailers through regular meetings to address concerns, provide updates on the Retail Action Plan, and gather feedback and input. for potential deals that involve tenants with non-national credit. Such extra security can help push more deals from potential to reality. Implementation of this program could include setting aside a small portion of funds in the District TIF, to be leveraged for capital improvements. Downtown Districts There are generally two methods for naming non-governmental districts /, ( (. ,-} " q,-. .3* #( &/ - /- “, & . #-.,# .- -/ " - ‰q( ( # & district”, “cultural district” or the “8th Street Design District”. Alternatively, place-related districts could be useful, such as “SoLi - South of Liberty” or other crowd-sourced or geographic naming conventions. Landlord Incentive Program Consider the possibility of a structured program which encourages landlords to invest in their vacant or dilapidated street-level spaces. DCED will work with building owners and retail brokers to /( ,-. ( ." ')-. q # (. ( -# & In partnership with other departments method of incentive. The goal is to ( #( )(-/&. .#)( 1#." ." ()(“*,)q. support capital improvements in unused sector, the private sector, the public, and and underutilized storefronts. the development community, DCED will explore such naming possibilities. Signage Grants Consider the possibility of a program focused on small grants or other means ) q( ( # & -/**),. ), -#!( ! ~ 1#." the understanding that even minimal support can make a difference in the decision of a small retailer to locate in the CBD. The City may also facilitate the sign permitting process to streamline requirements and timelines. Financial Backstop Some landlords or building owners are hesitant to take a chance on new, small, or start-up retail businesses because they have unproven credit-worthiness. Consider the possibility of the City *,)0# #(! -)' -),. ) q( ( # & %-.)* Street Vending Retail The City’s current street vendor program can become more creative and dynamic through, among other interventions, !, . , r 2# #&#.3 #( ." /- ) */ &# right-of-way. Other urban areas embrace street sales, both merchandise and food, to add character to the street experience. Transitioning from market “spaces” to market places is an opportunity to allow street vendors to contribute to a better sense of place in the CBD. 23 Collaborative communications efforts will strengthen the message about opportunities and momentum in Cincinnati’s urban core. Communication of the advantages of the CBD currently takes place through a multitude of avenues. By coordinating with the work of stakeholders we can ensure an .#0 ( q # (. #'* . 1#." )/, )&& .#0 ' ,% .#(! ),.- ( )&& ,-} Collaborate on Messaging Summary Convene external partners and stakeholders who market the CBD. Break down institutional barriers to increase collaboration and communication. Results of this collaboration may include common mapping, terminology, graphics, or other materials, as well as better cross-promotion and of events and ideas for the CBD. Implementation The Retail Committee of DCI will play a role in centralizing communication related to downtown with a focus on collaboration. Proactive efforts will also be utilized, such as the downtown constituent surveys conducted by DCI. When appropriate, this collaboration 1#&& r)1 .) 2#-.#(! -. % ")& , !,)/*- focused on the larger region, such as Source Cincinnati, the CVB, the Cincinnati Communications Alliance or other groups. Events, Tours and Programs The City should consider two possibilities for showcasing downtown assets. First, consider a new downtown tour of living. With many new residential units coming onto the market, the ability to brag about our new housing downtown is a great marketing and word-of-mouth tool. 24 Second, consider the possibility of a downtown tour of commercial of streetlevel storefront spaces to demonstrate to potential retailers or businesses the opportunity to locate in the CBD. These two events can be paired with exciting programming in the streets and public areas during the day, such as Cincy Summer Streets. The City can also provide information and education about recent or upcoming )**),./(#.# - ." . ( q. )1(.)1( retailers. For example, with the City’s recent transition to mobile-friendly parking applications, there are future opportunities for retailers validate parking costs for their customers. Timeline The DCI Retail Committee will provide a realistic timeline for implementation of this item. ICSC Conference Attendance Summary Attend the ICSC RECON conference held annually in May. Secure booth space (the )(0 (.#)( r)), " - ( , 0). .) »#.# - ( /(# #* &#.# -› ( - . /* ' .#(!- with pertinent retailers well in advance of the conference dates. Identify Cincinnati retail brokers and real estate representatives from local companies to work one to two hour shifts at the booth. Be well-prepared with accurate, appropriate materials and a follow-up plan. The objectives of attending the ICSC conference are: • Communicating opportunities within the entire City on a broad scale. • Developing and enhancing the visibility and credibility of Cincinnati as an attractive retail market. • Building and enhancing relationships with industry leaders. • Attending appropriate programs and sessions to become educated about industry trends and issues. The value of participating in ICSC programs is a long-term commitment based on consistently developing relationships and the national image of Cincinnati. In addition to the RECON Conference, DCED and partners may attend other regional ICSC events and similar networking events. Implementation: In the past, the City has had success by leveraging the contacts and expertise ) *,#0 . q,'- .) - . /* ' .#(!- ( create a conference agenda. This model might be pertinent for future ICSC conferences. DCI’s Retail Subcommittee may serve as a partner for the City’s participation in ICSC, assisting the City with suggestions for preparatory materials and relationships. Consider asking existing downtown retailers and brokers attending ICSC events to introduce the City to new retailers as a show of support for the downtown Cincinnati opportunity. Timeline The conference is generally held in May of every year. On a longer timeframe, goals for ICSC conference attendance include holding an event or a booth with local and regional developers and stakeholders to communicate our close collaboration and *, - (. /(#q . ' .) *,)-* .#0 retailers and showcase the “Cincinnati opportunity”. Updates After ICSC attendance each year, DCED will create a report documenting successes, failures, lessons learned, and future opportunities. 25 Implementation We understand this Action Plan must be different from past retail or downtown strategies. Therefore, it was crafted with a focus on action. It requires collaborative implementation and leveraging the wisdom of stakeholders. It aims to facilitate and hasten the development of a critical mass of retail businesses in the CBD that will result in more sustainable downtown core. on retail as a key initiative for 2016 and beyond. This is an optimum time to leverage their focus through three DCI Committees: 1. Urban Experience Committee 2. Retail Committee 3. Marketing Committee DCI is intimately involved, by mission, in the success of the CBD. Their historic focus on creating a clean and safe downtown will continue to be central and is a well-recognized precondition for all development and progress. DCED will also proactively engage other organizations, such as the Cincinnati USA Regional Chamber, Source Cincinnati, REDI, the Cincinnati Convention and Visitors Bureau, Cincinnati Center City Development Corporation (3CDC), and private developers to play role in implementation. The City should tap into their expertise and leverage their investments. Because the retail sector is a critical element of the downtown user 2* ,# ( ~ » " - -* #q ) /- During implementation, DCED will ensure DCI has staff bandwidth for additional downtown advocacy. RETAIL ACTION PLAN TASK TRACKING Building Accessible Data (Strategy I) Develop Available Property Online Mapping Tool Develop Momentum Map Update Retail Market Goal Tracking Report Q10.00 16 18 My Tasks Develop Available Property Online Mapping Tool Develop Momentum Map Update Retail Market Goal Tracking Report 1.00 Q2 16 Department DCI DCED DCED 2.00 Q3 16 Contact 3.00 Q4 16 Start Date 4.00 Q1 17 Due Date 5.00 Q2 17 #Quarters to Complete 3.0 1.0 20.0 6.00 Q3 17 % Complete 0% 0% 7.00 Q4 17 8.00 Q1 18 9.00 Q2 18 On Schedule Notes Yes Yes Updates to occur quarterly for foreseeable future Yes 10.00 Q3 Last Updated I ti Program g i Pl (Strategy (St t g III.B) II) Pop-Up Create a Program Description Create a database of available spaces Set-up meetings with appropraite stakeholders Establish a program budget Create committee of local retailers Present Report to City Q1 16 0.00 18 My Tasks Create a Program Description Create a database of available spaces Set-up meetings with appropraite stakeholders Establish a program budget Create committee of local retailers Present Report to City 26 Q2 16 1.00 Department DCED DCED DCED DCED DCED DCED Q3 16 2.00 Contact Q4 16 3.00 Start Date Q1 17 4.00 Due Date Q2 17 5.00 #Quarters to Complete 1.0 2.0 2.0 2.0 1.0 20 2.0 Q3 17 6.00 % Complete 0% 0% 0% 0% 0% 0% Q4 17 7.00 On Schedule Yes Yes Yes Yes Yes Yes Q1 18 8.00 Notes Q2 18 9.00 Q3 10.00 Last Updated The second method for measuring implementation is to analyze broader metrics evaluating the health of the retail sector. Examples include retail vacancy, * -.,# ( ., q ~ , . #& - & -~ ( , -# (. satisfaction. These metrics paint a picture of how the retail sector is doing. Overall, the City will leverage the expertise of a variety of stakeholders throughout the implementation of the Action Plan. The roles of different stakeholders will naturally change over the course of implementation. Participation by and communication from existing downtown retailers is important as the Action Plan is implemented. DCED and DCI will continue to engage with real estate professionals, property owners, brokers, residents, and others. These meetings will feed into the implementation of the Retail Action Plan. Taken together, these qualitative and quantitative analyses will provide City staff and leadership with information to aid future decision-making. Examples of these tracking metrics appear on the following page. Annually, the City will issue a report evaluating implementation of the Retail Action Plan. Evaluation The City has two primary methods for tracking and evaluating the implementation of this Retail Action Plan. " q,-. ' .") 1#&& ., % ." *,)!, -- and completion of the written strategies and tasks using “percentage complete” methodology. RETAIL ACTION PLAN GOAL TRACKING Metric Office/Retail Property Value per SF Đƚual Results 40.00 35.00 Target Results 30.00 Goal: TBD 25.00 20.00 15.00 10.00 5.00 0.00 Q1 2016 KĸĐe/Retail Property Value per SF KĸĐe/Retail Property Value per SF Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q1 2016 37 TBD Q2 2016 0 TBD Q3 2016 0 TBD Q4 2016 0 TBD Q1 2017 0 TBD Q2 2017 0 TBD Q3 2017 0 TBD Q4 2017 0 TBD Q1 2018 0 TBD Q2 2018 0 TBD Q3 2018 0 TBD Q4 2018 0 TBD Q1 2019 0 TBD Q2 2019 0 TBD Q3 2019 0 TBD Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Actual A t l Results R lt 1 KĸĐĞͬZĞƚĂŝů Property Value per SF Resident ^ĂƟƐĨĂĐƟŽŶ Survey Median Household /ŶĐŽŵe # ŽĨ ZĞƐŝĚĞŶƟĂů Units # Retail Businesses Annual Retail Business ZĞŶƚĞŶƟŽŶ Rate # Jobs in City (Retail) Retail sĂĐĂŶĐLJ Rate Total Retail Sales # ŽĨ Pedestrians 27 Cincinnati Downtown Strategy RETAIL ACTION PLAN Department of Community and Economic Development MOVING RETAIL FORWARD Department of Community & Economic Development Two Centennial Plaza 805 Central Ave. Suite 700 Cincinnati, Ohio 45202 513.352.2435 choosecincy.com