LAKEPORT, Calif. – In an effort to bolster the city’s economy, the Lakeport City Council on Tuesday voted unanimously to hire a retail recruitment firm that will work to bring new retailers to the community and develop an overall retail strategy.
At the suggestion of staff, the council approved the $30,000 contract with The Retail Coach, which has offices in Texas and Mississippi.
The discussion begins at the 31:36 minute mark in the video above. The staff report begins on page 55 of the agenda packet below.
City Manager Margaret Silveira said the city did a retail study using cell phones that showed that Lakeport – which has about 4,700 residents – has an average daytime population of 57,000, with thousands more people coming into the city as a result of travel and shopping.
That number, said Silveira, “creates a whole new conversation.”
City staff met with two major retail coaching companies and asked for proposals from each. Silveira said The Retail Coach provided the better bid.
Austin Farmer, the company’s project manager who oversees the West Coast, said they work to identify retail opportunities, then recruitment staff puts together data and marketing information and works to bring retailers to the community.
During the discussion, he explained the data and market analysis that will be completed and that it will be used to come up with a list of 25 retailers who will fit the city’s needs – filling gaps not replacing existing businesses.
“On paper it looks like you're a small community with a small population,” said Farmer, but the city actually has a high daytime population.
At the same time, the city has a lot of retail “leakage” – meaning, people go elsewhere for some types of shopping – in the area of general merchandise, Farmer said, noting he was interested that Dollar General had come to the city.
Farmer said the contract with the city is for 12 months. The first three to four months will be dedicated to data analysis ahead and stakeholder meetings.
Councilman George Spurr asked if the company has worked in other Northern California communities lately. Farmer said they’ve done projects in places including Weed, Tracey and Dinuba.
Councilman Kenny Parlet asked if it’s typical to have five to 10 times the normal population in the daytime due to the city being the county seat. Farmer said it depends on the community and region, and that typically it would be expected.
Farmer said that when retailers are looking at Lakeport without regional awareness, they are only looking at a population of 5,000. Normally, major retailers look at communities with populations of 15,000 or more.
Silveira said the plan is not just about recruitment but about retention and helping businesses do better.
Farmer added that the company is big on community engagement and not trying to push existing business owner out. “We fill gaps,” he said, adding that they look not just at retailers but at developers.
Silveira said she’s talked to local shopping center owners, who are excited about the possibility of working with the firm.
“This is huge. I love the proposal,” said Councilwoman Stacy Mattina, adding she’s glad it’s a plan that won’t sit on a shelf, because there is an action component to it.
Parlet, who owns Lakeview Market in Lucerne, noted that Lakeport is getting beat up about having empty buildings, and that it has a 550 percent surplus of retail grocery. He wanted to make sure that any new business put on Main Street is really needed.
Parlet said the $30,000 for the contract is a small amount of money to bring in businesses that people want, noting that what’s going on now isn’t working well.
Mayor Tim Barnes asked if there will be a charge to city business owners to get the data the company will compile. Farmer said no, that because the city is paying for the work the information is shared freely with business owners. He said the company also will hold a business owners’ workshop.
Barnes asked about what kind of return on investment the company looks at. “Our base is sales tax,” said Farmer.
Farmer said The Retail Coach doesn’t guarantee any outcomes. It comes up with a list of retailers that should be in the community and reaches out to them, and the retailers then usually will respond with what they need. From there, the firm will create a road map.
“That alone is a return on investment,” said Barnes.
Barnes asked how successful the program is. Farmer said that in 80 percent of communities, they will get a letter of intent in the first year from a retail company.
During public comment, Bill Eaton, a member of the Lakeport Economic Development Advisory Committee, told the council, “I think this is a great idea.”
Eaton, however, questioned the 57,000 number, considering the entire county’s population is 64,000. He wanted to know if that number could be confirmed.
Farmer said the data indicates it’s people coming in from outside of the county. The breakdown included information that identified visitors as retirees, students and homemakers.
Farmer said that information can be looked at more closely based on the cell phone data, which Parlet called “terrifying.” In turn, Farmer noted there are privacy protections, and he explained that when a person uses one of the top 1,000 apps, they give certain permission for location. The Retail Coach purchases that information from app developers.
The information tracks foot traffic, requiring people to be in a specific area for a certain time and make certain interactions in their phones, he said. Silveira added that the cell phone study on Lakeport used the Safeway parking lot on 11th Street as the point of entry.
Barnes, pointing out that the information only relates to those with smartphones, suggested that 57,000 number could actually be low.
“It's a big game of perceptions,” said Farmer, and they will use the data to either undo those perceptions or validate them.
Parlet asked if the city would be able to get a map of where the visitors are coming from, and Farmer said the company will be able to provide a heat map of the visitors’ origins. Silveira added that the city used a different company to do the cell phone study, so The Retail Coach will be double checking those numbers.
Barnes said he wanted to see visitor numbers for the fall, because he believed the numbers were peak due to the summer. Silveira said they were told the 57,000 was an average over the year, and Farmer added that their analysis will be able to look at the year or a set time range.
Community member Anna Gregorian asked when the company will have its report done. Farmer said within the first 30 to 40 days.
Business owner Nancy Ruzicka said she was impressed with the proposal, noting it’s offering current information and that she has tried for years to recruit a national retailers for her shopping center on High Street. A traffic study she had completed shows that the High Street area has the number of daily trips a national retailer wants.
Ruzicka added that she wants to see Main Street filled with businesses.
Wilda Shock, the chair of the Lakeport Economic Development Advisory Committee, said the city needs the data for its economic development strategy, its lakefront revitalization plan and hotel feasibility study. The information is needed to implement the plans and attract developers.
Another important aspect is working with local businesses through education so they understand they are part of the greater business community. “I think this is the next step in gathering that data,” Shock said.
Parlet moved to approve the contract, with a budget adjustment that Silveira said had been mistakenly left out of the staff report. Mattina seconded and the full council voted in favor.
“Looks like you're hired,” Barnes said to Farmer, adding that he’s looking forward to seeing the information.
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071619 Lakeport City Council agenda packet by LakeCoNews on Scribd