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HomeMy WebLinkAboutR33- Economic Development ECONOMICYDEOF SAN VELOPPMENITOAGENCY ORIGINAL FROM: Emil A.Marzullo SUBJECT: The Fransen Company-Amendment No.1 to the Interim Executive Director Agreement for Professional Services for Commercial/Retail and Marketing/Siting Advisory Services for the Downtown Core Vision DATE: March 10,2011 and Action Plan Area and Business Retention/Expansion/Attraction and Job Creation Program Synopsis of Previous Commission/Council/Committee Action(s): On February , 2010, Redevelopment Committee Members Johnson, Baxter, and Brinker unanimously voted to recommend �' P that the Community Development Commission consider this action for approval. On March 10, 2011, Redevelopment Committee Members Johnson and Marquez unanimously voted to recommend that the Community Development Commission consider this action for approval. -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Recommended Motion(s): (Community Development Commission) Resolution of the Community Development Commission of the City of San Bernardino approving and authorizing the Interim Executive Director of the Redevelopment Agency of the City of San Bernardino ("Agency")to execute Amendment No. 1 to the Agreement for Professional Services by and between the Agency and The Fransen Company, for Commercial/Retail and Marketing/Siting Advisory Services for the Downtown Core Vision and Action Plan Area and Business Retention/Expansion/Attraction and Job Creation Program ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Contact Person(s): Kathleen Robles Phone: (909)663-1044 Project Area(s): Central City/Central City North Ward(s): 15` Supporting Data Attached: 0 Staff Report Rl Resolution(s)0 Agreement(s)/Contract(s)❑Map(s) ❑ Letter(s) not to exceed FUNDING REQUIREMENTS: Amount: $ $110,000 Source: Consulting Services Line 6600 Budget Authority: Fiscal Year 2010-2011 Budget c Signature: Fiscal Review: Emil A.Marzullo,Interim Executive Director Lori Plariffio-Tillery,Interin&hief Financial Officer ----------------------------------------------------------- ----------------- ---- --------------------------------------------------------------------------------------------------- - Commission/Council Notes: �e -/7 ----------------------------------------------------------------------------------------------------------------------------------------—------------------------------------------------------------ PAAgmdw\Co DevCo nfini=\CDC 2011\03-21-11 The FmnsenCompmy-AmmdmentNoIWAgre tf P,,fsi MSevie SP-dmx COMMISSION MEETING AGENDA Meeting Date: 03/21/2011 Agenda Item Number: l23 j ECONOMIC DEVELOPMENT AGENCY STAFF REPORT THE FRANSEN COMPANY—AMENDMENT NO. 1 TO THE AGREEMENT FOR PROFESSIONAL SERVICES FOR COMMERCIAL/RETAIL AND MARKETING/SITING ADVISORY SERVICES FOR THE DOWNTOWN CORE VISION AND ACTION PLAN AREA AND BUSINESS RETENTION/EXPANSION/ATTRACTION AND JOB CREATION PROGRAM BACKGROUND: For more than 25 years, The Fransen Company (the "TFC") has provided retail consulting services to cities, business districts, retailers, developers, land owners, and major financial institutions. TFC has assisted cities such as: Santa Monica (3r Street Promenade), Baltimore, Sacramento (K-Street Mall), El Centro, Coronado, Glendale, Long Beach (Pine Avenue), Los Angeles, Las Vegas and San Jose, by assessing complex downtown commercial and retail situations and creating and implementing strategies and action plans. In November 2008, TFC was retained under the Redevelopment Agency of the City of San Bernardino's (the "Agency") purchase order authority to assist in identifying key issues and opportunities impacting the retail performance of the City of San Bernardino's (the "City") downtown (the "Downtown"). This work was done in conjunction with the development and urban planning efforts for the Downtown Core Vision and Action Plan. In March 2009, the Community Development Commission of the City of San Bernardino ("Commission") approved a Professional Services Agreement (the "Agreement") with TFC to expand the Scope of Services to include commercial/retail and marketing/siting advisory services for the Downtown Core Vision and Action Plan area and business retention/expansion/attraction and job creation program. Through these services, TFC has identified and addressed a number of commercial and retail issues, opportunities, concepts and ideas to revitalize the Downtown. TFC has also introduced several restaurant chains and niche eateries to Theater Square, the vacant Agency property in front of the former CinemaStar movie theater, as well as advised the Agency of potential major retailers to re-enter the San Bernardino market. CURRENT ISSUE: San Bernardino has a number of historic retail performance issues to overcome. There are key sites that under-perform due to ownership structure, absentee ownership, site control, market competition and other factors. The City has many important assets and qualities that can be positioned to create a compelling forum for retail success. Under the existing Agreement, TFC has prepared, along with Agency Staff, marketing material for Agency presence at the International Council of Shopping Centers ("ICSC") national conference, made presentations and facilitated meetings with other agencies, potential developers, and other interested parties as related to commercial and retail opportunities in the Downtown and for the Inland Center Mall. The work performed by TFC has identified theater opportunities with ancillary restaurant and --------------------------------------------------------------------------------------------------- P'Ngendas\Co DevCommission\CDC2011W3-21-11T heFmnseaCompany-AmendmentNoltoAgreemeatforProf'omdServic SR.docz COMMISSION MEETING AGENDA Meeting Date: 03/21/2011 Agenda Item Number: 933 Economic Development Agency Staff Report The Fransen Company—Amendment No. 1 to PSA Page 2 developer interest, along with opportunities that have engaged potential retail developers and tenants for the Inland Center Mall, various major commercial corridors, and industrial zones in San Bernardino. As the Agency continues to move forward with the revitalization of the Downtown (especially Theater Square) and other areas within the City, TFC's expertise is strongly needed to analyze and compare commercial/retail proposals, dining and entertainment developments, and related economic development activities such as job creation, retention, and expansion. In addition, TFC will also assist the Agency and its message of retail development opportunities to the ICSC conference in May and September 2011. It is important that retailers/developers are made aware of the market potential and market demand that exist and will be in existence in Downtown and in the City and local sub-region. The ICSC conference will provide an avenue and forum in a national and international arena to promote and market the City. Accordingly, this Amendment No.l is being proposed to continue the Agency's momentum in marketing, location siting, retail, and entertainment development, and advisory services through TFC. The Redevelopment Committee has recommended that the Agency enter into this Amendment No.I to the Agreement with TFC for an amount not to exceed $110,000 for approximately twelve-months of professional services on an on-call, as-needed basis. Payment and the Scope of Services to be undertaken by TFC is as stated in the original Agreement. This Amendment No.l reiterates the original Scope of Services that has been and will be undertaken by TFC. ENVIRONMENTAL IMPACT: This item does not meet the definition of a "project" under Section 15378 of the California Environmental Quality Act ("CEQA"). FISCAL IMPACT: The cost of Amendment No. 1 to the Professional Services Agreement with the Fransen Company is $110,000, which is included in the Fiscal Year 2010-2011 Agency budget. There is no cost to the City's General Fund. RECOMMENDATION: That the Community Development Commission adopt the attached Resolution. Emil A. Marzullo, Interim Executive Director ---------------------------------------------------------------------------------------------------------------------------------------------------------------- P:\Agendas\C.—D.vCommission\CDC 2011\03-21-11 TheFmnsenCo mpany-Amendm entNo lto Agreementf mProfessionalServi..SR.d—, COMMISSION MEETING AGENDA Meeting Date: 03/21/2011 Agenda Item Number: 2,>3 0 1 RESOLUTION NO. 2 3 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING AND 4 AUTHORIZING THE INTERIM EXECUTIVE DIRECTOR OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO 5 ("AGENCY") TO EXECUTE AMENDMENT NO. 1 TO THE AGREEMENT FOR PROFESSIONAL SERVICES BY AND BETWEEN THE AGENCY 6 AND THE FRANSEN COMPANY, FOR COMMERCIAL/RETAIL AND 7 MARKETING/SITING ADVISORY SERVICES FOR THE DOWNTOWN CORE VISION AND ACTION PLAN AREA AND BUSINESS 8 RETENTION/EXPANSION/ATTRACTION AND JOB CREATION PROGRAM 9 10 WHEREAS, the Redevelopment Agency of the City of San Bernardino (the "Agency"), is a 11 public body, corporate and politic existing under the laws of the State of California, California J ! 12 Community Redevelopment Law, Health and Safety Code Section 33000, et seq. (the "CRL"), and i 13 is charged with the mission of redeveloping blighted and underutilized land; and 14 WHEREAS, the Community Development Commission of the City of San Bernardino (the 15 "Commission") is the governing body for the Agency; and 16 WHEREAS, for more than 25 years, The Fransen Company (the "Consultant") has provided 17 retail consulting services to cities, business districts, retailers, developers, land owners, and major 18 financial institutions, by assessing complex downtown situations and creating and implementing 19 strategies and action plans; and 20 WHEREAS, the Consultant was retained by the Agency in 2008 and again in 2009 under a 21 Professional Services Agreement to continue providing assistance in identifying key issues and 22 opportunities impacting the retail performance of the City of San Bemardino's (the "City") 23 downtown (the "Downtown") and assisting with the urban planning efforts of the Downtown Core 24 Vision and Action Plan (the "Vision&Action Plan"); and 25 WHEREAS, the Consultant has met and conferred with Agency and City staff, gathered and 26 researched relevant commercial and retail data, project site surveys, and has held or participated in 27 stakeholder meetings and meetings with interested retail providers and developers, as well as other 28 interested community groups and individuals; and 1 I 1 WHEREAS, the Consultant, together with Agency Staff, have prepared materials, made 2 presentations and facilitated meetings with other agencies, potential developers, and other interested 3 parties, and further evaluated physical, market, competitive, merchandising, economic, demographic 4 and other issues that impact current retail results and potential future retail development and 5 opportunities; and 6 WHEREAS, the Consultant's expertise continues to be needed to analyze and compare 7 commercial/retail proposals, dining and entertainment developments, and related economic 8 development activities such as job creation, retention, and expansion, as the Agency continues to 9 move forward with the revitalization of the Downtown (especially Theater Square), the Vision & 10 Action Plan, and other areas within the City; and 11 WHEREAS, on March 10, 2011, the Redevelopment Committee of the Economic 12 Development Agency of the City of San Bernardino (the "Committee") recommended to the 13 Commission approval of Amendment No. 1 to the Agreement for Professional Services 14 (Amendment No. 1), attached hereto as Exhibit "A" and incorporated herein by this reference, by 15 and between the Agency and the Consultant, to accomplish any and all tasks necessary to prepare, 16 complete and market commercial/retail and marketing/siting advisory services for the Vision & 17 Action Plan Area and Business Retention/Expansion/Attraction and Job Creation Program; and 18 WHEREAS, the Committee recommended that the Commission approve said Amendment 19 No. 1 and authorize the Interim Executive Director of the Agency to execute said Amendment No. 1 20 with the Consultant for an amount not to exceed $110,000. 21 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE 22 CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER, AS 23 FOLLOWS: 24 Section 1. The information set forth in the above recitals of this Resolution is true and 25 correct. 26 Section 2. The Commission hereby approves said Amendment No. 1 by and between the 27 Agency and the Consultant in the form as attached hereto as Exhibit "A," and the Commission 28 hereby authorizes the Interim Executive Director to execute said Amendment No.I with the 2 I Consultant on behalf of the Agency together with such technical and conforming changes as may be 2 recommended by the Interim Executive Director and approved by the Agency Counsel and the City 3 Attorney. The Interim Executive Director of the Agency or such other designated representative of 4 the Agency is further authorized to do any and all things and take any and all actions as may be 5 deemed necessary or advisable to effectuate the purposes of the Agreement, including making non- 6 substantive modifications to the Agreement. 7 Section 3. This Resolution shall take effect from and after its date of adoption by this 8 Commission. 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 3 P:\Agendas\Resolutions\Resolutions\2011\03-21-11 The Fransen Company-Amendment No 1 PSA CDC Reso.docx 1 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING AND 2 AUTHORIZING THE INTERIM EXECUTIVE DIRECTOR OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO 3 ("AGENCY") TO EXECUTE AMENDMENT NO. 1 TO THE AGREEMENT FOR PROFESSIONAL SERVICES BY AND BETWEEN THE AGENCY 4 AND THE FRANSEN COMPANY, FOR COMMERCIAL/RETAIL AND 5 MARKETING/SITING ADVISORY SERVICES FOR THE DOWNTOWN CORE VISION AND ACTION PLAN AREA AND BUSINESS 6 RETENTION/EXPANSION/ATTRACTION AND JOB CREATION PROGRAM 7 8 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community 9 Development Commission of the City of San Bernardino at a 10 meeting thereof, held on the day of , 2011, by the following vote to wit: 11 Commission Members: Ayes Nays Abstain Absent 12 MARQUEZ 13 VACANT 14 BRINKER 15 SHORETT KELLEY 16 JOHNSON 17 MC CAMMACK 18 19 20 Secretary 21 The foregoing Resolution is hereby approved this day of , 2011. 22 23 24 Patrick J. Morris, Chairperson Community Development Commission 25 of the City of San Bernardino Approved as to Form: 26 27 By: 28 Agen #s_el 4 Exhibit"A" AMENDMENT NO. 1 TO THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AGREEMENT FOR PROFESSIONAL SERVICES THE FRANSEN COMPANY THIS AMENDMENT NO. 1 to the Redevelopment Agency of the City of San Bernardino Agreement for Professional Services, The Fransen Company, (this "Amendment No. I"), is dated as of, March 21, 2011, and is entered into by and between the Redevelopment Agency of the City of San Bernardino, a public body, corporate and politic (the "Agency") and The Fransen Company, (the "Consultant"), and amends certain provisions of that certain Agreement for Professional Services with The Fransen Company, dated as of May 7, 2010 by and between the Agency and the Consultant (the "Agreement"). The Agency and the Consultant agree as follows: RECITALS WHEREAS, the Agency and the Consultant have executed and entered into the Agreement, and the Consultant has performed various services and tasks as required pursuant to the Agreement; and WHEREAS, the Consultant has performed the Scope of Services and tasks as required pursuant to the Agreement; and WHEREAS, the Agency desires to continue the professional services for an additional twelve (12)months; and WHEREAS, the Agency and the Consultant desire to amend the Agreement for Professional Services to extend the period the professional services (as shown in Exhibit "A" attached hereto) are needed and to provide for an increase in the contract dollar amount for said professional services. NOW, THEREFORE, IN CONSIDERATION OF THE RECITALS SET FORTH ABOVE, THE MUTUAL PROMISES OF THE AGENCY AND OF THE CONSULTANT IN THIS AMENDMENT NO. 1 AND FOR OTHER GOOD AND VALUABLE CONSIDERATION THE RECEIPT AND SUFFICIENCY OF WHICH ARE HEREBY ACKNOWLEDGED BY THE AGENCY AND BY THE CONSULTANT, THE AGENCY AND THE CONSULTANT AGREE AS FOLLOWS: 1. The Recitals of this Amendment No. 1 are incorporated herein by this reference. 2. The termination date of the Agreement as set forth in attached Exhibit "A" of the Agreement and this Amendment No.1 amends the time period of the Agreement to be extended through and including March 2012. 3. Section 4.A of the Agreement is amended by increasing the total compensation payable by the Agency to the Consultant from $110,000 to $220,000, representing an increase of $110,000, as said $110,000 figure is provided in Section 4.A. of the Agreement. Section 4.A. of the Agreement is hereby amended by the insertion of the dollar figure of$220,000 to replace the dollar figure of$110,000. 1 P:\Agendas\AgendaAttachments\AgendaAttachments\Agrmts-Amend 2011\03-21-11 The Fransen Company Amendment No I PSA.do" Exhibit"A" 4. The Agreement is further amended by the substitution of the Exhibit "A" as attached to this Amendment No. 1 to replace the Exhibit "A" as was attached to the original form of the Agreement. IN WITNESS WHEREOF, the Agency and the Consultant hereto have duly executed this Amendment No. 1 as of the date first written above. AGENCY Redevelopment Agency of the City of San Bernardino, a public body, corporate and politic Dated: By: NOT FOR SIGNATURE Emil A. Marzullo, Interim Executive Director Approved as to Form and Legal Content: By: NOT FOR SIGNATURE Timothy J. Sabo, Agency Counsel CONSULTANT The Fransen Company Dated: By: NOT FOR SIGNATURE Name: Title: Q 2 P:\Agendas\Agenda Attachments\Agenda Attachments\Agrmts-Amend 2011\03-21-11 The Fransen Company Amendment No 1 PSA.docx EXHIBIT "A" SCOPE OF SERVICES OBJECTIVE: Consult on the overall retail situation downtown on an on-going basis and identify key strategic issues, projects and a range of approaches to improving the environment for retail performance and development with site specific and retailer-specific impact. APPROACH: • Provide retail development consulting on a series of proposed projects including: Downtown Vision Plan efforts, Theater Square at 4t' and "E" Streets, Carousel Mall, Court Street, Inland Center Mall and others. • Evaluate physical, market, competitive, merchandising, economic, demographic and other issues that impact current retail results and potential future retail development in Downtown San Bernardino and City commercial corridors. • Review plans for commercial and retail developments and provide input. • Conduct meetings with key retailers, developers and property owners. • Advise City officials in negotiations and overall project issues. • Identify key issues impacting retailer decisions regarding Downtown San Bernardino through direct contact with key retailers. • Conceptualize new retail opportunities in Downtown and the City, utilizing retail input directly from stores. • Prioritize projects and provide input and participate in project presentations to multiple audiences. • Interface with City officials and key stakeholders to understand major opportunities and impediments to retail attraction. May include presentation to the City Council and/or Planning Commission. WORK PRODUCT: Distill input and overview analysis into a series of high level retail strategic issues and potential action plans and priorities. Present findings in executive summaries and oral reports. TIMETABLE: Start: March 2011 Complete: March 2012 FEES: $110,000 professional fee for services,billed monthly at an hourly rate for: • John Fransen: $285.00 • Ron Arslan: $220.00 • Administrative: $ 60.00 Out-of-Pocket Expenses: Billed at cost and will not exceed $150 for any single expenditure item without prior approval by the agency contract administrator($10,000 total).