HomeMy WebLinkAboutResolution 2002-088
RESOLUTION NO. 2002-088
A RESOLUTION AUTHORIZING A JOINT
CONTRACT WITH RICHLAND HILLS FOR
CONSULTING SERVICES WITH LELAND
CONSULTING GROUP FOR SOUTH
GRAPEVINE HIGHWAY STRATEGY
Whereas, The City of North Richland Hills and the City of Rich/and Hills have
solicited proposals for a South Grapevine Highway Corridor
Strategy; and
Whereas, The team of Leland Consulting Group out of Denver, Colorado, and
HNTB Planning Firm out of Dallas, Texas were found to be the best
firms to lead the South Grapevine Highway Corridor Strategy by the
two cities; and
Whereas, The South Grapevine Highway Corridor has long been recognized
as one of Northeast Tarrant County's major commercial centers;
and
Whereas, In recent years, the South Grapevine Highway Corridor has
suffered from disinvestment and many businesses have moved out
of the area to locate to newer, more modern shopping centers; and
Whereas, New projects are generating renewed interest in the South
Grapevine Highway Corridor, and the City would like to support the
redevelopment taking place in the area; and
Whereas, The ultimate goal and public purpose of Economic Development
Agreements and programs is to attract new employers, jobs, and
investments into the City, strengthen the City's tax base, and
enhance the City's ability to provide municipal services to its
citizens; and
Whereas, The South Grapevine Highway Strategy will benefit the City and
the businesses and residences along the South Grapevine
Highway Corridor, would contribute to the retention and expansion
of primary employment in the City, and would increase ad valorem
tax revenues and sales tax revenues in the City. and
Whereas, Based on these findings, the City proposes to execute a joint
agreement with Richland Hills for consulting services with Leland
Consulting Group to perform a South Grapevine Highway Corridor
Strategy;
NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF NORTH RICHLAND HILLS, TEXAS:
That the City of North Richland Hills City Council does hereby
authorize the City Manager to execute a joint agreement with the City of Richland
Hills for consulting services with Leland Consulting Group for a South Grapevine
Highway Strategy for $88,000 to be split equally by the City of North Richland
Hills and the City of Richland Hills. A substantial copy of the agreement is
attached hereto and incorporated herein for all intense and purposes.
PRESENTED AND PASSED on this the 28th day of October 2002 at a regular
meeting of the City Council of North Richland Hills, Texas.
~t\\>.~--',
-,' .... ....~~-:.
:~ ,tlGST: \~ \
o' \ '
~~
PatricIa Hutson, City Secretary
Õ;~
Oscar Trevino, Mayor
APPROVED AS TO FORM AND LEGALITY:
www./aandconsu/ting.com
610 SW Alder Stm:t Suite t 008
Portland. OR 97205-3611
ph 503, 222, 1600
þc 503, 222, 5078
694 South Gaylord Street
Denver. CO 80209
ph 303, 458, 5800
þc 303, 458, 5420
12770 High Bluff Drive Suite 360
San Diego. CA 92130
ph 858,509, 1699
þc 858, 509, 0274
LELAND CONSULTING GROUP
L:
1 October 2002
~(Q)j@þ
Ms. Ashley Stathatos
Marketing and Research Coordinator
Economic Development Department
CITY OF NORTH RICHLAND HILLS
7301 NE Loop 820
North Richland Hills, Texas 76180
Dear Ms. Stathatos:
On behalf of Leland Consulting Group (LCG), Real Estate Strategists and HNTB,
Community and Transportation Planning, we are pleased to present this proposal to
assist the Cities of North Richland Hills and Richland Hills (client team) with
preparation of a revitalization strategy for the South Grapevine Highway Corridor, This
analysis will provide the client team and other project advocates with
recommendations which will produce tangible results, and information which will
lead to careful investment and a well-served market.
UNDERSTANDING OF TIlE SITUATION
It is an undisputed truth that a community's commercial corridors and business
districts are the barometer of its overall quality-of-life. Area-wide and local chamber
of commerce executives, economic development specialists, and industry recruiters
have found time and again that projects are often won or lost based on one single
criterion - the condition and economic health of community's commercial business
districts, Employers have found that vibrant districts and corridors significantly
increase their ability to attract and retain high quality employers - whether or not the
business are present - thereby minimizing turnover and associated personnel costs,
City officials have found that bond rating companies often include the economic
prosperity of commercial business districts as one criterion they consider when
determining a city's bond rating,
Throughout the country, public and private entities are participating in the
revitalization of their commercial business core. In a report prepared for the
American Public Power Association, several utility companies surveyed explained
the basis for their participation in enhancement efforts, including the following: a
thriving business district is a good recruitment tool for industry; corridor
enhancements stimulate the economy and adds jobs; economically, everyone benefits
from a healthy business core; a viable core infrastructure is essential to economic
development in the whole area; a better commercial business corridor increases
tourism in the area; and, it is a good investment. Cities throughout the country who
have undertaken similar efforts have found that benefits to the community are multi-
faceted and multiplicative. Specifically, quality of life is enhanced, the number and
diversity of job opportunities are increased, and dollars are invested.
.
Real Estate Strategists
L:
LELAND CONSULTING GROUP
The Cities of North Richland Hills and Richland Hills, together with community
stakeholders, are seeking the assistance of professionals experienced in
understanding the unique opportunities and challenges presented by the commercial
business core environment.
Specifically, you are seeking the assistance of experts who can work with the
community to develop economic redevelopment strategies for the execution and
implementation of projects, programs and policies which will effectively and
profitably leverage investment in commercial corridors over the near- and long-term.
PROJECT ApPROACH
The Leland Team's approach to corridor revitalization efforts such as this is to
develop an understanding of the demands of the marketplace, barriers to investment
(regulatory, financial, physical and market), and valued assets of the environs, while
educating and building support. The identification of "cheerleaders" who will carry
the urban corridor banner and implement the actions identified through this process
will be critical to the success of the strategies. Central to this approach is a
commitment to delivery of a strategy for action, not a study with a limited shelve-
life, A detailed description of our proposed scope of work is contained in Attachment A.
CONSULTANT TEAM
The consultant team assembled to accomplish the project goals is led by Leland
Consulting Group (LCG). LCG is a national organization with a reputation
spanning more than 30 years. Because of extensive cross-training in market research,
financial analysis, economic development, planning, public policy and real estate
development, the principals of LCG bring a high level of reality
and practical experience to their assignments with actual development expertise in-
house. In total, the firm has completed more than 1,500 assignments throughout the
United States. Among these are central city reinvestment efforts for: Lincoln,
Nebraska; Des Moines, Iowa; Dubuque, Iowa (waterfront); Colorado Springs,
Colorado; Montrose, Colorado; Portland, Oregon; Bend, Oregon; Fort Worth, Texas;
Midland, Texas; and Corpus Christi, Texas.
As a principal-intensive organization, our clients are assured that only senior level
professionals will direct and conduct the work. We feel that assignments such as this
deserve the time and focus of seasoned professionals whose years of judgment and
experience bring substantial added value to the process. We are committed to
bringing this assignment to a successful conclusion, and we believe that our
experience and qualifications appropriately demonstrate our capacity to make these
assertive statements.
Submitting with us is HNTB. HNTB has a long history of serving public and private
sector clients throughout the western United States - providing urban design,
transportation planning, and public facilitation expertise for a wide variety of
. Leland Consulting Group, Real Estate Strategists
Page 2 of2
LELAND CONSULTING GROUP
L:
community revitalization projects. The principals of LCG Denver and HNTB have
recently worked together on several community-wide initiatives designed to build
support and encourage private investment.
PROJECT BUDGET AND TIMING
The proposed timing and budget for this assignment are summarized as follows:
Project Timing:
Total Project Budget (Not-To-Exceed):
7 to 8 Months
$88/000
TERMS OF P A YMENf AND OTHER CONDITIONS
Leland Consulting Group will submit invoices to the Cities requesting payment for
work accomplished by work task. Payment of invoices will be made by the Cities
upon receipt of invoices by Leland Consulting Group.
SUMMARY
In summary, we are excited by the opportunity to work with you and your
communities, As experienced advisors to public sector clients throughout the United
States, we understand how to take a project such as this from inception to completion
-- moving from the general to the specific, building support along the way and
ending with a project that is responsive to market and economic realities, as well as
community desires. The firm's core practice is working for communities preparing
infill strategies, transit-supportive and corridor revitalization programs for rural and
urban communities throughout the Midwest, Western and Southern United States,
For this reason, we maintain the availability for our principals to work on projects
such as this one.
If you have any questions regarding this submittal, please contact either Anne Ricker
or Bill Cunningham at (303) 458-5800. Both of these individuals are authorized to
execute an agreement on behalf of Leland Consulting Group. Neither of these
individuals, nor the other team members, has a conflict of interest in completing this
project.
Contact Information:
Anne B. Ricker
694 South Gaylord Street
Denver, CO 80209
303.458.5800 P
303.458,5420 f
aricker@lcgdenver.com
Bill J. Cunningham
694 South Gaylord Street
Denver, CO 80209
303.458.5800 P
303.458.5420 f
bcunningham@lcgdenver,com
. Leland Consulting Group, Real Estate Strategists
Page 3 of3
LELAND CONSULTING GROUP
L: ACCEPTANCE OF PROPOSAL
Thank you for the opportunity to submit this proposal. In order to initiate our
services according to the attached work scope, please sign below and return a copy
of this contract to us.
FOR THE CITY OF NORTH RICHlAND HILLS:
Mr. Oscar Trevino
Mayor
Date
Mr. George Staples
City Attorney
Date
Mr. Larry Cunningham
City Manager
Date
FOR THE CITY OF RICHlAND HILLS:
Ms. Nelda Stroder
Mayor
Date
Mr. Tim Sralla
City Attorney
Date
Mr. Jim Quinn
City Manager
Date
Ms. nne Ricker
PrinclpaJfPresident
io
Date
. Leland Consulting Group, Real Estate Strategists
Page 4 of4
L:
LELAND CONSULTING GROUP
LELAND CONSULTING GROUP
STANDARD ENGAGEMENT TERMS AND CONDITIONS
Our report(s) submitted to you will be based on estimates, assumptions and other information
developed from research of the market, our knowledge of the real estate industry and
meetings during which you will provide certain information. The sources of information and
basis of the estimates and assumptions will be stated in the appropriate sections of our
report(s).
The terms of this engagement are such that we will have no obligation to revise our report(s)
or the projected market and/ or prospective financial analysis to reflect events or conditions
which occur subsequent to the last day of our field work. However, we will be available to
discuss the necessity for revision in view of changes in the economic or market factors
affecting the proposed project.
We will not ascertain the legal and regulatory requirements applicable to this project. Further,
no effort will be made to determine the possible effect on this project of future federal, state, or
local legislation including any environmental, growth restrictions, or ecological matters or
interpretations thereof. We will not investigate the presence or issue of toxic material, asbestos
or other pollutants in, on. or adjacent to the subject property, We recommend that an
experienced specialist investigate these matters, With respect to market demand analysis, our
work will not include any analysis of the potential impact of possible energy shortages, Since
our market analysis will be based on estimates and assumptions, which are inherently subject
to variation depending upon evolving events, we will not represent them as results that will
actually be achieved.
Our report is intended for internal use by you, the client. Otherwise, neither our report not its
contents may be included, referred to or quoted in any offering circular, registration statement,
prospectus, appraisal, loan application or other agreement or document in whole or in part
without the written consent of Leland Consulting Group.
From time to time, and/ or at your request, we may issue a draft report, discussion outline or
other interim document(s). This/ these draft report(s) and documents are not to be relied upon
to make management/ investment decisions nor are they to be presented to a third party in
summary, in part, or in totaL This/ these draft report(s) and other interim documents are to be
used for internal discussion purposes only,
Either party, the City or Leland Consulting Group, reserves the right to terminate this contract.
In the event that the client or Leland Consulting Group elects to terminate this agreement, the
initiating party must notify the other in writing. In such event, the client agrees to pay Leland
Consulting Group for all professional fees and expenses incurred up to and through the date
of receipt of notification to terminate this agreement. Leland Consulting Group reserves the
right to withhold delivery of any report document until any outstanding invoices are paid in
full.
The client agrees that Leland Consulting Group cannot be held responsible for any delays
caused by the client, agents acting on behalf of the client, acts of nature, or the actions of others
from whom the completion of this engagement depends. Leland Consulting Group and
HNTB are Independent Contractors and agree to indemnify the City against all claims of
employees of such firms and from claims arising out of actions of such firms, their officers and
employees.
This agreement may be amended only in writing executed by both Leland Consulting Group
and the client.
. Leland Consulting Group. Real Estate Strategists
Page 5 of 5
LELAND CONSULTING GROUP
L:
THE LELAND TEAM
SCOPE OF WORK
SOUTH GRAPEVINE HIGHWAY CORRIDOR STRATEGY
OCTOBER 2002
The following scope of work is principally based on: a review of your Request for
Qualifications and stated objectives for this assignment; preliminary field analysis of
the study area; experience working with communities promoting the revitalization
of commercial corridors; as well as research of public and private sector efforts in
other markets. The cities' role throughout the planning process is defined in the
work tasks below.
WORK TASKS
0.0 Stakeholder Involvement - Meet with project participants (including property
and business owners) in a variety of settings to obtain information related to
the study area and its context within the region, i.e" ownership patterns,
existing structures, infrastructure, unique conditions, market knowledge,
barriers to investment, past efforts, etc.
Meeting formats will be tailored to the availability of participants, but are
anticipated to include: one-on-one interviews, breakfast and lunch meetings,
meetings and presentations with/ to professional organizations (Rotary,
League of Women Voters, student organizations), etc. Stakeholders would
include developers, lenders, representatives from public and non-profit
agencies, elected officials and others who would eventually be a part of the
implementation of future projects. Prepare an overview of insights gained,
barriers to overcome, and opportunities to be capitalized on.
Work with cities' ad hoc or task force committees - sharing insights gained
and soliciting guidance on recommendations and policy issues, Meet with the
committee - at the beginning to establish goals for the process and desired
outcomes; during the process to inform and redirect (where necessary) the
approach; and, at the end to review the findings and recommendations.
Phase I: Market Analysis
1.0 Physical Site Analysis - Work with cities' project representatives and any
relevant task force members to discuss and refine the study area boundaries,
(Note: Boundaries may be adjusted at various points throughout the process
based in insight gained and potential implementation strategies.) Catalogue
existing physical improvements and features through photographs, surveys
and plans. This information will assist in documentation of existing character,
landmarks, underutilized lands and potential opportunities for development
and redevelopment.
Prepare a land use document including a discussion of density, F.A.R.,
general uses, parking and tenant mix. An overview of best and maximum
use, specific to the larger geographical region, will yield short- and long-term
. Leland Consulting Group, Real Estate Strategists
Page 1 of 1
L:
LELAND CONSULTING GROUP
2.0:
exceptions and recommendations for specific programming of land use and
tenant type.
Field Survey and Verification - Complete field and site surveys to identify select
conditions present within the corridor, their location and extent, and
deficiencies. Collect relevant information on public facilities, parcelization,
street layout, parking, land use, utilities, code violations, ownership, and
other appropriate data. Gather and "ground-truth" business inventory with
ownership records and categorize across several data points (e.g., value,
location of owner, taxes paid, etc.)
Base Mapping - Prepare a series of base maps to document the location and
condition of selected information including, i.e., study area and area of
influence, easements, other physical, market and political information, The
purpose of the base maps will be twofold - provide the cities with an
illustrative measure for change and targeted investment; and, meet legislative
requirements for establishment of potential funding entities (special districts),
Economic/ Market Assessment - Complete economic and market
reconnaissance in order to become familiar with conditions in the corridor
and their influence (trade) area - through site inspections (Task 2.0), review of
relevant studies and reports, and interviews with key leaders and advocates -
gain a working knowledge of prevailing factors which are affecting
investment.
3.0
4.0
Collect and analyze relevant information on key indicators including
consumer expenditure patterns, assessed valuation, property ownership and
values, economic and demographic characteristics, land prices, etc. Evaluate
the strengths and weaknesses of the areas' economic and market base with
relationship to local and regional trends, in order to identify the underlying
causes of growth and development and the potential for various niche land
use opportunities in the study area. Quantify demand by land use, and
product type. Prepare a market and economic profile including data for the
region, community and corridor influence areas, Information related to
market opportunities will be used as the basis for recommendations related to
future development concepts,
Phase II: Community Consensus Building
5.0 Business/Property Owner Survey - The objective for completion of a business
and property owner survey will be twofold - generally, to articulate
benchmarks for actions associated with revitalization of the corridor;
specifically, to identify market segments most likely to be interested in
commercial and business products in the South Grapevine Highway Corridor.
With the results of a statistically accurate survey mechanism in-hand, LCG
will work with the client team to determine what type of land and product
types are needed/ desired; what amenities potential users require; what the
market is willing to pay for these amenities; and, support for specific
financing mechanisms.
6.0 Focus Groups/One-on-One Interviews - Facilitate a series of three 2 to 3 hour
focus group/workshops to broaden community participation and to
incorporate qualitative knowledge or "street sense" into the process. Focus
. Leland Consulting Group, Real Estate Strategists
Page 2 of 2
L:
LELAND CONSULTING GROUP
groups will be targeted to specific segments of the community and designed
to be results-oriented, providing immediate ideas and a foundation for
revitalization tools and strategies. Suggested groups include:
Business Owner Focus Group: This session will be oriented to
corridor businesses, including retail, entertainment and
service. The session will include a facilitated discussion of the
customer base, area strengths, weaknesses and competition,
leading to a group definition of the corridor's "competitive
advantages". Based on this understanding, participants will be
asked to suggest methods and financing mechanisms for
capitalizing on strengths and mitigating weaknesses.
Property Owner Forum: This session will include a facilitated
discussion of the corridor's economic and physical strengths
and weaknesses. Property owners will then be asked to
suggest methods and financing mechanisms for capitalizing on
strengths and mitigating weaknesses. An interactive "priority
setting exercise" will complete the workshop. The format will
accommodate up to 25 participants.
Workshop To Be Determined: The third workshop will be
determined following initiation of the project. Options include
a community forum for residents or a focus group for
city / state agency representatives to discuss the local
regulatory environment including building codes and zoning
requirements.
One-an-One Interviews: In addition to focus groups, complete
one-on-one meetings with key property and business owners
including representatives of the development delivery system
such as public officials, financiers, developers and others. The
purpose of these interviews will be to discuss opportunities and
constraints to past and future development efforts,
Upon completion of this outreach effort, prepare a list of barriers in the
community's development "delivery system" identified during the focus
groups and incorporating community perceptions identified during
interviews and meetings of opportunities, constraints and past forces which
have molded the corridor.
Phase III: Feasibility Study
7.0 Opportunities and Constraints Analysis - Establish a common baseline of
technical information useful in the corridor redevelopment strategy process.
Data will be used to understand physical and economic opportunities and
constraints on growth in the corridor, mechanisms to further select
revitalization programs, their potential impact and leveraged return.
Physical data to be considered includes: land use inventory; historic building
designations; zoning; arterial and collector street plans; utilities and
infrastructure; comprehensive plan; traffic data; and, facilities information.
Prepare a physical profile of the corridor market, identifying those elements
. Leland Consulting Group, Real Estate Strategists
Page 3 of3
LELAND CONSULTING GROUP
L:
and components of the area which define its particular character - significant
assets to be preserved and barriers to be eliminated or reconfigured.
Economic development and marketing data to be considered includes:
performance of existing districts; incentive and abatement programs;
neighborhood coordination; past partnerships; and, business promotion and
recruitment. Prepare an economic development and business profile of the
corridor market, identifying those elements and components which have been
employed and are effective, as well as those that might be reoriented to better
reflect opportunities,
8.0 Preliminary Development Concepts - Based on the findings of the market
analysis, as well as insight gained through the completion of previous tasks,
(indicators and trends), identify development opportunities, and quantify
market potential and the capacity of the local delivery system. Together with
the cities' project representatives and ad hoc committee members, prepare
development pro~ram alternatives for the corridors and select activity nodes
illustrating land use, density and tenant mix.
For each of the activity nodes, document the location and condition of
selected information including: area of influence, neighborhood connections,
supporting/ conflicting parcels, regulatory impacts, and other factors which
will impact investment.
9.0 Positioning Strategy - Develop priorities for public and private investment to
realize the Corridor's market potential and niche opportunities. The Leland
Team will work with the client team to establish criteria for evaluation and
prioritization. The team together with the city will develop priorities and a
sequencing timetable. Collectively, project representatives and the
consultants will participate in a priority setting process to help guide the
investment strategy.
Phase IV: Redevelopment Plan
10.0 Implementation Strategy - Information from the previous tasks will be used
to formulate a set of strate~ies for the short-term that lead to long-term
changes desired by the cities and concerned owners and developers of the
properties within the corridor. The Leland Team will work with the cities to
define specific phased action items to carry forward the plan elements to
implementation. These action items could include specific zoning tools,
development incentives, financing mechanisms, key public (capital) projects
and business support programs.
11.0 Organizational Assessment - The Leland Team will suggest modifications to the
organizational structure of public and private entities involved in corridor
revitalization. Organizational goals will include eliminating duplication,
maximizing cost effectiveness, leveraging resources and ensuring
accountability to both public and private constituencies, Organizational
recommendations could be developed with a sub-committee of the task force committee
consisting of representatives from affected organizations.
12.0 Budget for Action - Identify sources of funds to implement the strategy from a
variety of public and private sources. In addition, identify development
. Leland Consulting Group, Real Estate Strategists
Page 4 of4
LELAND CONSULTING GROUP
L:
incentives necessary to attract investment and create a more favorable
environment for private investment, including: land write-downs; taxing
policies; rent abatement programs; and others.
PRO/ECTTIMINc¡!BUDGET
Timing": 7 to 8 Months
Total Project Budget (Not- To-Exceed): $88,000
.. Many work tasks will be completed concurrently.
. Leland Consulting Group, Real Estate Strategists
Page 50J5
LELAND CONSULTING GROUP
L:
THE LELAND TEAM
SCHEDULE OF DELIVERABLES
SOUTH GRAPEVINE HIGHWAY CORRIDOR STRATEGY
OcrOBER 2002
WORK TASKS
0.0 Stakeholder Involvement -
One-on-One Interviews (20 - 25)
Meetings and Presentations with/ to Professional Organizations (4)
Task Force Committee Meetings (To Be Determined)
Council and Commission Meetings/ Adoption Hearings (4)
Phase I: Market Analysis
1.0 Physical Site Analysis -
Catalogue of Physical Improvements (photographs, surveys and plans)
Land Use Document
2.0: Field Survey and Verification -
Field and Site Surveys
Business Inventory
2.0 Base Mapping -
Base Maps
4.0 Economic/ Market Assessment -
Market and Economic Profile
Demand (Void) Analysis by Land Use
Phase II: Community Consensus Building
5.0 Business/Property Owner Survey -
Business and Property Owner Survey
Community Benchmarks
6.0 Focus Groups/One-on-One Interviews -
Focus Group/Workshops (2 - 3)
Barriers Analysis (Opportunities and Constraints Analysis)
. Leland Consulting Group, Real Estate Strategists
Page 1 of2
LELAND CONSULTING GROUP
L: SCHEDULE OF DELIVERABLES
SOUTH GRAPEVINE HIGHWAY CORRIDOR STRATEGY (CONT'D)
October 2002
Phase III: Feasibility Study
6.0 Opportunities and Constraints Analysis -
Physical Profile
Economic Development and Business Profile
7.0 Preliminary Development Concepts -
Development Program Alternatives (Documented and Illustrated)
8.0 Positioning Strategy -
Priorities and Sequencing Timetable
Phase IV: Redevelopment Plan
9.0 Implementation Strategy -
Phased Action Items
11.0 Organizational Assessment -
Organizational Goals
12.0 Budget for Action -
Sources of Funds
Development Incentives
Implementation Strategy
. Leland Consulting Group, Real Estate Strategists
Page 2 of2