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Home My WebLink About2014.03.11 EDA Agenda PacketAGENDA CITY OF HUGO ECONOMIC DEVELOPMENT AUTHORITY TUESDAY, MARCH 11, 2014 5:00 PM 5:00 pm 1. Call to Order 5:01 pm 2. Roll Call 5:02 pm 3. Approval of Minutes EDA Meetings of February 11, 2014 5:03 pm 4. Update on Washington County Economic Development Strategic Plan 5:30 pm 5. Kidz n' Biz Sponsorship Request 5:40 pm 6. Update on Downtown Redevelopment 6:00 pm 7. Adjournment BACKGROUND MEMO FOR THE EDA MEETING OF TUESDAY, MARCH 11, 2014 3. APPROVAL OF MINUTES Staff recommends approval of the minutes from the February 11, 2014, EDA meetings as presented. 4. UPDATE ON WASHINGTON COUNTY ECONOMIC DEVELOPMENT STRATEGIC PLAN Over the past several months Washington County has been working with Springsted Inc., to develop an Economic Development Strategic Plan for the County. Staff was been involved in a workgroup at the County to provide direction and feedback on the plan. The plan is now complete and will be considered at the Washington County Board meeting on March 18, 2014. Staff has included the draft that will be presented to the County for the EDA's review. 5. KIDZ N' BIZ SPONSORSHIP REQUEST On April 26, 2013, the 10th Annual Kidz n' Biz Fest will be take place at Oneka Elementary School. This annual event is an opportunity for the HBA and Hugo EDA to directly connect with the Hugo families and children in a PTA Carnival atmosphere. This event is expected to attract more than 500 Hugo children and their families and will feature an assortment of games presented by the Hugo businesses with assistance from the White Bear School District. Last year the EDA sponsored the event in the amount of $750. The HBA is asking for the EDA to sponsor in that same amount again this year. 6. UPDATE ON DOWNTOWN REDEVELOPMENT Staff will update the EDA on downtown redevelopment. MINUTES FOR THE EDA MEETING OF FEBRUARY 11, 2014 Weidt called the meeting to order at 5:00 pm. PRESENT: Arcand, Bever, Denaway, Gallivan, Puleo, and Weidt ABSENT: Klein STAFF: Bryan Bear, City Administrator Rachel Juba, Planner APPROVAL OF MINUTES FOR THE EDA MEETING OF JANUARY 14, 2014 Puleo made motion, Gallivan seconded, to approve minutes for the EDA meeting of January 14, 2014. All ayes. Motion carried. TRUST MARKETING SOLUTIONS Amy Nelson, is the founder of Trust Marketing Solutions in Hugo which is a video production and marketing company. She has created several videos for businesses in Hugo. Since moving to Hugo, she has been an active member in the Hugo Business Association (HBA). In December 2013, Amy was elected as the new HBA President. Staff invited Amy to attend the EDA meeting to provide background on her business and to discuss the goals and action items for the HBA for 2014. Amy thanked the EDA and the City for its partnership with the HBA. She stated that the HBA has set several goals for the year, such as, membership retention and expansion, marketing of businesses, and updating its website. The EDA welcomed Amy as a business in Hugo and as the new President of the HBA. DISCUSSION ON CONTRACT WITH REALTOR TO MARKET CITY OWNED PROPERTY At its January meeting the EDA interview two real estate broker companies that made proposals for market the City owned property in downtown. The EDA recommended to the City Council to enter into a contract with High Pointe Realty partnering with Wakota Commercial Advisors to market the property. Staff had a discussion with the EDA's on its expectations for the marketing of the property and what should be included in the contract. Staff will meet with the realtors to discuss the contract and put it on a City Council agenda for approval. Staff will continue to provide updates to the EDA. UPDATE ON DOWNTOWN REDEVELOPMENT Staff updated the EDA on the O'Reilly's Auto Parts sketch plan application. The Council made comments indicating they were not comfortable granting the variances that would be needed to make the project work. They were also concerned that this would be setting precedence for other plans to ignore the Downtown Guidelines. They talked to the applicant about other options. Denaway stated that there needed to be flexibility with the design guidelines and that it need to be financially feasible for a business to meet them. Weidt stated that he is not ready to discard the design guidelines and stated that a further discussion on them will be at a workshop with the Planning Commission and City Council. RESIGNATION OF COMMISSIONER BEVER Weidt thanked Commissioner Bever for his service to the City and dedication to the EDA. Bever has been on the EDA since it was originated in 2004. Weidt stated that he will be missed on the EDA. ADJOURNMENT Weidt made a motion, seconded by Gallivan, to adjourn at 6:00 P.M. All ayes. Motion carried. W�S11iY1��0I1 CO1111ty Washington County Board of Commissioners Economic Development Strategic Plan March 1 S, 2014 Draft for Working Grou Review Economic Development: A Washington County Strategic Initiative What is Economic Development? Economic development has different meanings to different people. The County Board believes the International Economic Development Council (IEDC) definition is appropriate for Washington County's unique mix of social, geographic, political and economic qualities: No single definition incorporates all of the different strands of economic development. Typically economic development can be described in terms of objectives. These are most commonly described as the creation of jobs and wealth, and the improvement of the quality of life. Economic development can also be described as a process that influences growth and restructuring of an economy to enhance the economic well-being of a community. The main goal of economic development is to improve the economic well-being of a community through efforts that entail job creation, job retention, tax base enhancements and quality of life. As there is no single definition for economic development, there is no single strategy, policy or program for achieving successful economic development in Washington County. Thus the plan laid out in this document is developed from a comprehensive and broad-based perspective. Through implementation of this strategic plan the County anticipates achieving the following short-term goals over the next 1-2 years: 1. Established a single point of contact for economic development within the County government. 2. Updated County tax -increment financing and tax abatement policies. 3. Expanded County role in marketing the County. 4. Established working relationships with state, regional, and local entities working on business retention and growth within the County. ;RHIR Washington County Economic Development Strategic Plan 2014 Page 1 Ij{ Washington County's Economy A review of economic data for Washington County finds that the County's economy is healthy. • Washington County is a competitive, job creating economy. The county has experienced steady and strong growth in the number of jobs and weathered the recession well. Washington County had 80% employment growth from 1990-2012 adding 32,000 new jobs. The number of jobs in 2012 nearly rebounded to pre -recession levels of 74,000 total jobs. • Washington County competes very well within the region and the Twin Cities economy. Businesses in Washington County added 24,000 more jobs than would have been expected given national and industry trends. • Washington County is especially competitive and has significantly more jobs in comparison to neighboring counties in Wisconsin. Washington County's employment growth rate exceeded or was on par with neighboring counties in Wisconsin. Washington County maintains a competitive share of employment growth compared to St. Croix County, except for manufacturing where St. Croix County has a modest growth advantage. Washington County is a service -based economy. Washington County's top five largest sectors of employment are Trade (16%): Professional and Business Services (16%),- Education 16%);Education and Health Services (14%); Leisure and Hospitality (12%); and Government (13%). • Wages at jobs in Washington County are low, incomes primarily from jobs outside the County are high, and housing is expensive; these trends make affordable work force housing an issue for county leaders. r_V. Economic Development Working (horn To support the economic development planning process and to afford both public and private sector stakeholder input, the County Board formed a Working Group to guide the staff and consulting team. The Working Group has successfully established an identity and role in the process. One of the primary attributes of the Group was its ability to convene practitioners and other stakeholders to address questions and provide direction on important economic development topics. The County Board seeks to formalize the role of the Working Group in the strategic plan. The Working Group is made up of staff representatives from municipal governments, public agency partners such as the HRA and private sector members from sectors including real estate, small businesses and entrepreneurs. City officials represented a cross section of roles and responsibilities including: a Mayor, City Administrators, Planners, Community Development Directors and Assistant City Administrators. The County Board desires that the Working Group remain active and engaged and as part of the implementation the formal purpose and objectives will be determined. We can add more here if desired and we should talk about this at the Working Group meeting. Washington Counly Economic Dayelopment Strategic Plan 2014 Page 4 The foundation of this strategic plan is the policy and guiding principles that drive the strategies and goals of the County. The following policy statement and six guiding principles define the County's economic development planning efforts. These guiding principles are relevant for the present economic environment and are subject to review and change on a periodic basis. Economic Development Policy Statement It is the policy of the Washington County Board of Commissioners to strengthen the County's role and increase its support of economic development in the County. The County will invest staff time and financial resources in a planned, coordinated and strategic manner and will engage in a collaborative and holistic approach to economic development. The County's policies and actions will be guided by silt principles. Economic Development Guiding Principles The following principles are not in rank order of importance. • The private sector is the lead that drives the economy o The County will work in partnership with the private sector • The County will not duplicate or replace the work of cities and other public agencies o The County will work in collaboration with cities and public agencies and will provide leadership where the County can make the most difference • The County supports a strong collaborative approach to economic development o No matter the Iocation, economic development is a benefit to the entire county Business attraction and business retention are essential policy objectives o A balanced approach in each area is required • The diversity of the County requires an adaptable and open-minded approach o The distinctive qualities of the County require flexibility • A deliberate, purposeful and strategic plan is required o The County will take careful and prudent risks to pursue its objectives guided by criteria and policies VII. Wategles and Gals Economic Development Outcomes The County Board has eight outcomes for this Strategic Plan: 1. Retain a premier quality of life for all of residents 2. Create and sustain living wage jobs across all employment sectors 3. Expand the County's property tax base 4. Be a value-added partner to other public and private agencies 5. Allocate appropriate staff time and resources 6. Affect public policy issues that impact the County's economy 7. Expand the County's knowledge and experiences in economic development Washington County Economic Development £trategic Plan 2014 Page 5 The Strategic Plan provides a realistic and practical road map for the County. It guides the county leaders and allows them to focus on the most important economic development priorities. Furthermore it directs staff time and financial commitments to those activities that support the County's mission, 6sion, and goals. Ultimately when the plan is underway and the County has a solid foundation, it will improve accountability and the capacity to measure performance and outcomes. Economic Development Structure One of the primary questions that the strategic plan will answer what structure best suits the role Washington County wishes to take. The Working Group and county staff conclude that this will be a process that takes time to mature. Throughout the process two concepts were identified that are important components of the planning process: less formal structure and formal structure. Information on each follows_ Less Formal Structure (Public Private Partnership) These models are essentially Economic Development Commissions (EDC) supported by membership dues from private companies and local units of government. They are typically convened and staffed by the interested municipal entity and play primarily an advisory role and advocate for development in the community. Some communities, such as Wright County, assign the entity to evaluate and underwrite their loan programs, but the County Board retains the ultimate authority to approve the allocation of those financial resources. In addition to the private sector business representation, these boards can be comprised of representatives of smaller communities. This allows for these public private entities to pool resources and provide economic development technical assistance to those communities that don't otherwise have the individual capacity. Large communities with more staff and financial capacity use these types of structures more as an advisory board representing private sector business interests. In the case of Washington County, Woodbury and Oakdale use this structure to help develop Economic Development Strategic Plans. Since the primary benefit of this structure is to encourage private sector involvement through board participation and possibly financial support, the question is how could this type of structure benefit Washington County and what are the downsides. Our research shows that often counties in Minnesota start to play a role in economic development with this type of EDC structure as a first step. Counties can provide financial resources based on tasks assigned to that entity while retaining final approval authority for specific projects and programs. These structures work well as marketing champions for county wide growth and should not be considered mutually exclusive of a more formal structured approach. The possible downside risk of this approach in Washington County is the current private business community participants, particularly the Oakdale and Woodbury EDC's, could perceive that this is duplicative. In addition, the more this public private model is tasked with direct economic development activities, such as loan programs and technical assistance, the more there would need to be careful consideration given to avoiding duplicating those same efforts currently undertaken by the larger communities and potentially the County HRA. Washington County Economic Development Strategic Plan 2014 Page 6 Formal Structure (County Community Development Authority) If the County Board chooses a more formal and active role in economic development, one logical path is to seek any necessary special legislation to enhance the capabilities of the Washington County HRA by essentially adding economic development authority powers. Other jurisdictions have successfully completed similar legislative action and established themselves as "community development agencies" (Dakota, Scott, and Carver), that were originally constituted as housing authorities. Any programming would require careful consideration to avoid duplicating efforts currently undertaken by cities, but obtaining legal authority provides the county access to significant authority and financial resources to encourage economic development. Many of the technical skill sets required for implementing economic development strategies exist within the County HRA. (They also exist in many of the larger communities, but are currently limited to those municipal boundaries.) To be responsive to city needs and county board direction, the HRA could certainly undertake and implement programs (i.e. partner with MCCD for example) as soon as possible as long as those efforts are consistent with current authority, while pursuing the necessary legislative amendment process. A possible downside of the CDA model is the risk of diluting private business sector interests on the board. However, the CDA model can have a board comprised entirely of county elected officials or a blended combination of elected and appointed members. As resource commitments increase with a more active and formal participation in economic development activities, county elected officials may choose to have a more direct involvement on the board. They establish advisory committees organized according to the issues they intend to address. If the Washington County Board chooses to pursue a more formal CDA model and wishes to have more direct involvement with county wide housing and economic development initiatives, the structure could accommodate that desire. One of the principles promoted during this process is for the County to be purposeful and deliberate. If the formal CDA model becomes the objective, it will take time and careful collaboration to complete. Washington County Economic Development Strategic Plan 2014 Page 7 Economic Development Strategises Strategies are essential public policy priorities that precede goals and action steps. Typically they are long-term in -nature and are fairly constant in their intent and pursuit. The optimal way to introduce strategies is through the eight functional economic development categories that emerged from the stakeholder input process. The eight categories reflect the marketplace of opportunity for the County and general consensus is it makes good common sense to use these designations as the foundation for the strategies. The strategies are not ranked in order of importance.' Each strategy is followed by a couple goals. Goals are a measurable and desired activity, project or purpose that requires resources (time and/or money). Action steps are individual steps and activities necessary to implement a goal, accomplish a strategy, operationalize the mission and fulfill your vision. Specific action steps are continuously evolving and changing as they are completed. The role of local government in economic development must be viewed in both a short- and long-term perspective. In this, Washington County's first economic development strategic plan, the focus is on short-term actions that support and sustain a long-term investment. 1 For additional information and details on each strategy please read the December 12 and January 28 Board documents. Washington County Economic development strategic Plan 2014 Page 8 Organization 1)escripflon Board Economic EDAs were created to facilitate a well-rounded development County appoints Development program by taking advantage of some of the Port Authority Commissioners — if a Authority powers and all of the HRA powers. By combining and utilizing 5 member board, at (EDA) HRA, EDA and County powers, community leaders are able to least 2 County create flexible business assistance and development programs. Commissioners must EDAs for example, are allowed, to buy and sell property; make serve loans and grants to businesses; provide guarantees or other credit enhancements; and to sell bonds. Although Economic Development Authorities were originally designed to meet the needs of cities, special legislation has been granted to several counties to establish economic development organizations, in addition to housing authority powers, or Community Development Authority's. The EDA may employ an executive director and other staff. Housing An HRA is a legal entity created by a City Council, County or County appoints Redevelopment Area to provide a sufficient supply of adequate housing for Commissioners; HUD Authority low -to -moderate income families and individuals. They are requires a (HRA) / also charged with clearing and redeveloping blighted areas Commissioner to be a Community throughout the community. The board may be a citizen's panel, participant in the Development the County Board or a combination thereof. HRAs also have Housing Choice Agency limited powers that may be used for business development. Voucher Program or Special legislation has been used to add economic Public Housing development powers to become a community development Program where the agency (CDA). May require additional staff at the HRA. HRA acts as Public Housing Authority, Economic Development Strategises Strategies are essential public policy priorities that precede goals and action steps. Typically they are long-term in -nature and are fairly constant in their intent and pursuit. The optimal way to introduce strategies is through the eight functional economic development categories that emerged from the stakeholder input process. The eight categories reflect the marketplace of opportunity for the County and general consensus is it makes good common sense to use these designations as the foundation for the strategies. The strategies are not ranked in order of importance.' Each strategy is followed by a couple goals. Goals are a measurable and desired activity, project or purpose that requires resources (time and/or money). Action steps are individual steps and activities necessary to implement a goal, accomplish a strategy, operationalize the mission and fulfill your vision. Specific action steps are continuously evolving and changing as they are completed. The role of local government in economic development must be viewed in both a short- and long-term perspective. In this, Washington County's first economic development strategic plan, the focus is on short-term actions that support and sustain a long-term investment. 1 For additional information and details on each strategy please read the December 12 and January 28 Board documents. Washington County Economic development strategic Plan 2014 Page 8 As the County's role becomes more secure and established the goals and actions steps will evolve and change. The goals are focused on a one -three year timeframe. This does not prohibit or discourage the County from making changes and adjustments throughout the year. 1. Washington County is responsible for many core functions that contribute to a premier quality of life that is important to business growth; economic development resources and investments will advance and support the high standard of living in the County. 2. Washington County recognizes that economic development requires a strong infrastructure foundation built on a multi -modal transportation network and access to high-speed broad band networks. 3. Washington County uses economic development financial incentives in a fiscally prudent manner. 4. Washington County realizes that success in economic development is only achieved through a collaborative and inclusive process. 5. Washington County understands that other county -based services impact economic development goals and economic growth. 6. Washington County provides leadership and initiative to shape regional and state-wide policies to support county -wide economic development goals. 7. Washington County supports the value and importance of economic development marketing and branding for existing business retention and growth and new business development. 8. Washington County partners with other public and private agencies to pursue economic development goals. The Goals are not listed in any priority order or ranking. Priorities are established by the Letter assigned to each. The ranking is as follows: • Letter A One to Six Months • Letter B Six Months to One Year • Letter C One to Two Years 1. Washington County is responsible for many core functions that contribute to a premier quality of life that is important to business growth; economic development resources and investments will advance and support the high standard of living in the County. Work plan... 1. Designate a county staff member to be the point of contact for economic development and implementation of the strategic plan. 2. Evaluate how economic development factors into the County's 2040 Comprehensive Plan update. 3. Establish and monitor key economic indicators and benchmarks for the county and the quality -of -life indicators that are most important from a business perspective. Include in the county's annual performance measurement report. • I - __ "amu 7 Washington County Economic Development strategic Plan 2014 Page 9 2. Washington County recognizes that economic development requires a strong infrastructure foundation built on a multi -modal transportation network and access to high-speed broad band networks. Work plan... 3. Washington County uses economic development financial incentives in a fiscally prudent manner. Work plan... 1. Review and update the existing financial incentive policies: tax 1. Explore public-private partnerships to ensure access to high-speed broad band fiber networks throughout the county. increment financing and tax abatement. 2. Consider creating a pool of financial resources for unanticipated land acquisition (e.g. right-of-way) needs for economic development projects. support the County's economic development philosophy and principles. 3. Continue to pursue multi -modal transportation and transit opportunities that will stimulate economic growth in the County. 2. identify present economic development activities of the Housing and 3. Washington County uses economic development financial incentives in a fiscally prudent manner. Work plan... 4. Washington County realizes that success in economic development is only achieved through a collaborative and inclusive environment. Work plan... 1. Review and update the existing financial incentive policies: tax 1. Explore the value and purpose of a public/private partnership such as an increment financing and tax abatement. 2. Explore the creation of a revolving loan program to support business support the County's economic development philosophy and principles. development. 2. identify present economic development activities of the Housing and 3. Explore using federal Community Development Block Grant monies for Redevelopment Authority (HRA) and determine what other activities economic development activities. could be directed to the HRA consistent with their mission. 4. Washington County realizes that success in economic development is only achieved through a collaborative and inclusive environment. Work plan... =80=rlt�y Washington County Economic Development Strategic Pian 2014 Page 10 1. Explore the value and purpose of a public/private partnership such as an Economic Development Corporation and how it may complement and support the County's economic development philosophy and principles. 2. identify present economic development activities of the Housing and Redevelopment Authority (HRA) and determine what other activities could be directed to the HRA consistent with their mission. 3. Continue to convene the Economic Development Work Group to address issues of mutual concern and to foster a unified county -wide economic development approach. 4. Develop a concept paper on the formation of a Community Development Agency (CDA) and present to the County Board. =80=rlt�y Washington County Economic Development Strategic Pian 2014 Page 10 5. Washington County understands that other county -based services impact economic development goals and economic growth. Work plan... 6. Washington County provides leadership and initiative to shape regional and state-wide policies to support county -wide economic development goals. Work plan... Include economic development positions in the County's legislative platform. 7. Washington County supports the value and importance of economic development marketing and branding for existing business retention and growth and new business development. Work plan... 1. Assess how the County can participate in marketing and branding to support the existing efforts underway in other public and private agencies. 2. Build relationships with existing organizations that focus on job retention and identify how the County can support those efforts. 8. Washington County partners with other publiclprivate agencies to pursue economic development goals. Work plan... WA I MM a, �FS r Washington County Economic Development Strategic Plan 2014 Page 11 ,, �. 1. Partner with the Workforce Development Board and staff to identify and address workforce training and workforce housing needs. 2. Identify specific economic development training and assistance needs of Washington County communities and determine how best to meet those needs. 3. Continue the county's policy and funding role in regional economic development activities such as Greater MSP and East Metro Strong. WA I MM a, �FS r Washington County Economic Development Strategic Plan 2014 Page 11 Strategic plans are only as effective as the commitment made by all parties to follow-through. Washington County has invested a large amount of time and effort in the assessment, development and adoption of the Economic Development Strategic Plan. The Plan is comprehensive yet realistic. To that end, we offer the following ideas in support of the adoption. The plan provides the County with four distinct benefits: • A decision -malting tool to assist us in making choices • A leadership tool to assist in identifying and establishing goals • A management tool to assist in operationalizing plans and accountabilities • A communication tool to inform others about our plans To expand the next steps and to further take into consideration what may be logical short term actions, the County Board will: • Be the champion • Identify expectations • Allocate resources and time • Commit to implementation • Determine levels of accountability • Periodically review the Plan IX. Appendix We anticipate adding the following two documents to the Appendix: Summary of stakeholder engagement information Summary of city survey (from start of process) Washington County Economic Development Strategic Plan 2034 Page 12 r C) C2 C.# v 3� cd v A cu 4-1 � 0 0 o ,� n o �px a, � p,0 b 1 a w C s 3 -0 vM o 4EU 10 m 0 � b b Rr � Cd .a �A0 v b Qn p y rn t °o+"s°ova 4-4 y v� apo ,�p °o a, 0 Cl C4 4. a x. 45 Cd p O ice- U ��„?- C~d N+ •�" Qbogn��o W C14In n 11 0 N 66 N Q m w LL Ell U cd 0an0 O a 'aU C a p Z°R � cad pgo p v ° � a o G "O w Uu0 a''+d am +•' Z��4. _d .5 C �m R0 94 u u U b0 b O a ° 4, rm O u u U u op vace �w r' ° am rd - R 9 "d M U _4 y, b O cud D , y� S3 f, u cd m d ° a 0 P a v b O O .d O p O .O o +• i o ctl ay cd Q a� r+ !3 .o a v _b �� w 4. 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Taking a Closer Look Walmart Stores Go Small and Mat - by Edward McMahon February 19th, 2014 Can big box retailers think outside the box? A few years ago the idea of a pedestrian friendly big box store would have been laughable, but as urban living has become more popular the major chain retailers are paying attention and beginning to build urban format stores. On December 4, 2013 Walmart opened its first two stores in Washington, DC and the new stores illustrate the lengths to which brick and mortar retailers will go to get into rapidly growing urban markets. Compared to the old "grey -blue battleship box' that has saturated suburban and small town America, the new urban Walmart on H Street, NW in Washington is a remarkable departure. vim -Oft---ft View of Walmart on H Street, NW in Washington, DC. Photo by Edward McMahon. Whether you love them or loathe them, this building proves that Walmart — one of the most recognizable symbols of modern suburbia — is going urban. Who ever thought that Walmart shoppers could sleep upstairs and shop downstairs, but that is exactly what residents of the new Walmart near downtown Washington will be able to do. 1 of 7 2/28/2014 11:50 AM Walmart Stores Go Small and Urban http: I'plannersweb.com/2014.102/walmart-stores-go-small-urban/?prin... The 83,000 square ft. store built in partnership with JBG Rosenfeld is in a mixed use building topped by four stories of apartments. Instead of acres of asphalt, the parking is underground. In addition to the Walmart, there is another 10,000 square ft. of retail space wrapped around the outside of the retail giant. Retail tenants currently include a Starbucks and a bank, with more to follow. The residential portion of the building contains 303 apartments, a fitness center, a lounge area, a roof deck, and a swimming pool. View of roof deck and pool on top of the H Street Walmart in Washington, DC. Photo courtesy of JBG Companies. The main store entrance sits right on the sidewalk and shoppers will use an escalator to reach the store level. The store itself offers more groceries than a typical Walmart and the shopping floor is day lighted by real windows. Designed by MV+A Architects and the Preston Partnership, the H Street Walmart is a handsome urban building with traditional human scale details. It includes cornices, individual multi -pane windows, an interesting corner feature at the main entrance, and a separate entrance for residents. It is a fully urban, pedestrian friendly building. Whether you love them or loathe them, this building proves that Walmart — one of the most recognizable symbols of modern suburbia — is going urban. While the H Street store is by far the better of the two new urban Walmares in Washington, the other new store on Georgia Avenue, NW is also a significant departure from the typical suburban store design. Built on the site of an abandoned car dealership, the Georgia Avenue Walmart is a 102,000 square foot store on a four acre site. 2 of 7 2/28/2014 11:50 AM Walmart Stores {Go Small and Urban http:.'.'plannersweb.com/2014,'02/w almart-stores-go-small-urban?grin... View of the new Walmart on Georgia Avenue in Washington, DC. Photo by Edward McMahon. Given the small size of the property, the only way to build a large store was to eliminate surface parking and bring the store right up to the sidewalk. The parking is located in a garage located directly below the store. While the building is not mined use, it does greet the street and represent a real evolution for Walmart. In addition to the two stores that opened in The lesson here is that cities that want good design are going to have to demand it. December, 2013, Walmart has announced plans for four additional stores in Washington. Based on a review of their plans, some will be walkable, urban format stores, others will not. Dan Malouff, a design critic with the Greater Greater Washington blog, says that one will be unquestionably urban, one will be a hybrid, and two will be almost completely suburban. 1 The lesson here is that cities that want good design are going to have to demand it. 3 of 7 2/28/2014 11:50 AM Walmart Stores Go Small and Urban http://plannersweb.com/2014/02.lwaImart-stores-go-small-urbane?prin... Design rendering of Walmart now under construction in Washington's Fort Totten neighborhood. Graphic courtesy of JBG Companies. Building an Urban Format Store Can Walmart build an urban format store? The answer appears to be yes, but it also appears that the only thing standard in an urban format big box store is its lack of standardization. Building suburban big box stores is simple. Buy a 20 acre suburban greenfield site. Build a large, free standing rectangular single floor building on a concrete slab. Plop the building in a sea of parking. A Walmart Supercenter in the suburbs of Atlanta, for example, is essentially identical to one in the suburbs of Chicago or Cincinnati. This model simply won't work in a dense urban area. The two things that have kept Walmart out of cities were its inflexibility on design issues and opposition from labor unions and civic activists who oppose the company because of its low wages and negative impact on existing local businesses. Now that it appears that Walmart is willing (when pushed by local government) to adapt its stores to the urban environment, it is likely only a matter of time before the retail giant moves into cities all over the country. Big Boxes are Getting Smaller Another thing that is clear is that big boxes are getting smaller. The new 80,000 square ft. Walmart in Washington is half the size of many suburban Supercenters. What's more, Walmart is creating new formats uniquely designed for cities. The new Walmart Neighborhood Market, for example, is only 40,000 square feet while the so-called Walmart Express 4 of 7 2.128.`2014 11:50 AM Walmart Stores Go Small and Urban W 19 http:'/plannersweb.com'2014.'02!walmart-stores-go-small-urban.'?prin... stores are only 15,000 square feet. Walmart has even opened two college stores, at Georgia Tech in Atlanta -`-- and at the University of Arkansas in Fayetteville. 3 Each of these stores is less than 5000 square feet in size. Walmart Neighborhood Market in Chicago's Loop. photo by Eric Allix Rogers, Fhckr Creative Commons license. 1 Store Type Square Footage Date Initiated Discount Store a 106,000 sq. ft. 1962 f Supercenter 182,000 sq. ft. 1982 Neighborhood Market 38,000 sq. ft. 1998 Express Store 15,000 sq. ft. 2011 ' F College Store Under 5,000 sq. ft. E 2013 Times have changed. The country's largest retailers have oversaturated rural and suburban communities. The only place left with more spending power than stores is in our cities. Walmart has made its urban debut. The outstanding question remaining is: what impact will Walmart have on local economies and wages? Washington, DC, City Councilman Phil Mendelson, a co-sponsor of unsuccessful legislation that would have required big box retailers to pay a living wage and benefits, expressed skepticism about the impact of Walmart on the local economy. "I would say, having the world's largest retailer interested in locating in the city where we've lost almost every other department store over the last four decades — that's a good thing. Having an economic competitor who underprices the market and causes a descent to the bottom, in terms of wages — that is not a good thing." 4 While Walmart is clearly evolving to fit into cities, there is also evidence that the retail giant is willing to break the mold in smaller towns and suburbs. 5 of 7 2/28,2014 11:50 AM Walmart Stores Go Small and Urban http:/!plannersweb.com/2014,'02.'walmart-stores-go-small-urban/?prin... What About Smaller Towns & Suburbs? While Walmart is clearly evolving to fit into cities, there is also evidence that the retail giant is willing to break the mold in smaller towns and suburbs. This is because retail store size is shrinking due to the growth of internet shopping and also because suburbs are changing to stay competitive. Target, Whole Foods, Safeway, Giant, and other chains are already breaking the rules by building smaller footprint stores in multi -story buildings and mixed use developments. Walmart has recently opened several small town stores with parking under the building or with solar installations on the roof. What impact Walmart and other big box retailers will have on cities and the neighborhoods where they locate remains to be seen. Harriet Tregoning, the planning Director in Washington, DC, says that "Walmart does not offer any meaningful shopping experience. It competes solely on price and convenience." 5 Her message to small businesses is that "if you are in direct competition with Walmart you are in the wrong business to begin with." Instead she says "businesses that offer something Walmart can't like bars, restaurants and stores selling specialty goods or offering personalized levels of service — will continue to thrive." In some ways, the idea of national chains opening big new urban stores is a return to the way things once were. In 1960, we called it department store. Today we call it a Walmart. Ed McMahon is one of the country's most incisive analysts of planning and land use issues and trends. He holds the Charles Fraser Chair on Sustainable Development and is a Senior Resident Fellow at the Urban Land Institute in Washington, DC. McMahon is a frequent speaker at conferences on planning and land development. Over the past 21 years, we've been pleased to have published more than two dozen articles by McMahon in the Planning Commissioners Journal, and now on Plan ne rsWeb.com. Notes: 1. Dan Maloutt, "Walmart's 6 DC stores: Some will be urban, some won't" (Greater Greater Washington blog, April 26, 2012) 4- 2. 2. Allison Brooks, "The world's tiniest Walmart opens in Atlanta" (Atlanta Magazine, Aug. 14, 2013 3. Todd Gill, "Now open: Walmart on Campus" (Fayetteville Flyer, Jan. 14, 2011). *-a 4. Ryan Holeywell, "Walmart Makes Its Urban Debut" (Governing Magazine, June 2012) 6 of 7 2/28/2014 11:50 AM Walmart Stores Go Small and Urban http:/./plannersweb.com/2014/02.`wahnart-stores-go-small-urban/?prin... 5. Id. -'- Tags:Downtowns & Main Streets, Ed McMahon, Retail, Urban Design Printed From: http://plannersweb.com/2014/02/walmart-stores-go-small-urban/ 7 of 7 2;28/2014 11:50 AM Rachel Juba From: Nancy Brase <Nancy.Brase@co.washington.mn.us> Sent: Wednesday, March 05, 2014 9:02 AM To: Nancy Brase Subject: March 31, 2014 League of Local Governments Meeting e f!,