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HomeMy WebLinkAboutECONOMIC DEVELOPMENT SYSTEMS INC (EDS) - 1997-04-21V FCITY OF HUNTINGTON BEACH ECONOMIC DEVELOPMENT TO: Connie Brockway, City Clerk FROM: - David C. Biggs, Director of Economic Development fm DATE: July 27, 2001 SUBJECT: Official Record of New Insurance for Contract--EDS For your official records, I am forwarding to you the original Certificate of Liability Insurance for the contract between the Redevelopment Agency and Economic Development Systems (EDS). This proof of insurance is to replace the one fled with you on July 20 that expires today. If you have any questions, please do not hesitate to call Jim Lamb at extension 5186. :71 F,': 4c�5�15:'i r s' 0727J1 L -b TO'd �L6 L99S Sb5 OTC EV:80 T(20-7-97--n J✓ Z . --7 ACORD„ CERTIFICATE OF LIABILITY INSURANCE 7_z_�-01 rno°�t:ER - - THIS CERTIFICATE IS ISSUED AS A MAT1ER OF INFORMATION �1���1In 1 ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE & ASSOCIATES INC. 4/.I.UES INS. HOLDER. THIS CERTIFICATE DOES NOT A61END. EXTEND OR 121a itighlBnQ Ave. P.O. Box 7660 ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. - Manh=risn BejkcN CA OC266 —" (310) 54S-5667 INSURERS AFFORDING COVERAGE xvsuP¢D CA U=se #419429 OCIL-w.rA BURI.iNCTON LNSUK&NCE CO`1?ANY .1IM HARRICAN 6 PAT HURST 1W.1Iftra0 DiA: ECON0.4tr I)EVELOPMENT SYSTEMS IIh11Nrr11.- 436 CALLE MAYOR Irlsurr+ll+ R :DONDO BEACH. CA., 90277 1!1\IIMrMt COVERAGES TH' PtA ICIF%09INSL1nAN( F. LISTEi) 8171 OW HAVE RFFN ISSUED TO THE IN.S.In_D NAAAEbABOVE FOR TF.E POLICY PER -CO INDIf;ATEJ NfJI VVI71 VjTAN.%Nr, ANY REOUIREMENT. TERM OR CONDITION OF ANY CONTRACT CA OTI+EA DOCUMENT YVITI I NC'oPLC+ IU VVlRt,a l IOW, Q W11 II A11 MAY III tSfui1, C1I1 MAY vLkIAIN ItIC INPUIFANCL Al 1011UL'U GY I KF' P01JCIr.S UCSCCI UCl1 HLADN IS SMFCT TO Ai I TGIF TFnMFS. 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S C? ]@911CX 2000 I".A1N STREET "TN" ZRIF10aIXMGlcxlrac%XV- L.EKMKR ITUITINGTON 5 ACII, CA Y2648 . AL ]rl� EP��tiwTlrE �'�c. fx rr � r�7 fr�r ACOHD 25-S (7/97) is ACORD CO►'1PORA7I 8 YO'd L999 ays OTC sajeI.mossy g aaqjes i£:LO To-9Z-ter 81665. jEdD Council/Agency Meeting Held: 600• yo De erred/Continued to: Approve iti Hall A r ded ❑ Denied y lerk's Signature Council Meeting Date: January 3, 2000 Department ID Number: ED 00-03 CITY OF HUNTINGTON BEACH REQUEST FOR REDEVELOPMENT AGENCY ACTION SUBMITTED TO: HONORABLE CHAIRMAN AND REDEVELOPMENT AGENCY MEMBERS SUBMITTED BY: RAY SILVER, Executive Director PREPARED BY: DAVID C. BIGGS, Director of Economic Development PCs SUBJECT: Approve Contract for Professional Services -- Economic Development Systems, Inc. (EDS) x H Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status? Attachment(s) ftatement of Issue: The Redevelopment Agency requires assistance in recruitment of appropriate retail tenants for the Main -Pier subarea of the redevelopment project area for both existing vacancies and planned development. Funding Source: Funding for this Contract is contained in the 1999-2000 Redevelopment Agency Budget. Recommended Action: Motion to: 1. Approve and authorize the Chairman and Agency Clerk to execute the attached contract between the Redevelopment Agency and Economic Development Systems, Inc. (EDS) to provide professional services in retail tenant recruitment for a period of one year, in an amount not to exceed $88,720. Alternative Action(s): Do not approve the attached contract. Analysis: On April 21, 1997, the Huntington Beach Redevelopment Agency approved a contract with Economic Development Systems {EDS} to assist staff and local downtown p,operty owners to help implement the Downtown redevelopment plan through the marketing of the area and the expansion of the retail tenant mix. The contract was awarded to EDS b3-cause of their extensive experience in retail tenant attraction in areas such as Pine Avenue in Long Beach and Old Town Pasadena. During the past two and one-half years, EDS has worked closely with staff to not only establish a data bank of the potential tenants for downtown, but has made good progress in exposing our downtown to a variety of retail a,td restaurant tenants. / REQUEST FZSR REDEVELOPMENT AGEN6 ACTION MEETING DATE: January 3, 2000 DEPARTMENT ID NUMBER: ED 00-03 Over this summer, an interim contract was awarded to EDS to allow time to complete work they were doing for the Agency, such as assisting in our first open house for retail brokers and arranging a visit by a key prospective restaurant tenant. Also during this period, staff issued a Request For Proposals for professional services for a tenant recruitment program. We mailed the RFP to 4 firms who provide these services and received proposals from 2 agencies. After reviewing the submittals, staff is recommending retaining the services of Economic Development Systems. More recently, this item was scheduled for Redevelopment Agency action for November 1, 1999, but was held back to allow for greater analysis and input by the city. On November 10°i, the City Administrator, Director of Economic Development and other staff met with Economic Development Systems to discuss their strategy for attracting high -quality retail tenants into our downtown. On November 17` . this proposed contract was on the agenda for the Economic Development Committee of the City Council, and principals from the EDS consulting firm presented information about their work -to -date and steps necessary to achieve success in diversifying and upgrading our tenant mix in the downtown core. They also submitted letters of support from numerous downtown property owners, developers, and retail tenants, all included as exhibits to Attachment #3. After these meetings with EDS, staff is still recommending approval of the attached contract. Staff believes that the redevelopment of the Main -Pier area is at a key juncture with impending private and public improvements in the downtown core and significant new commercial space to be developed in areas beyond the core. Knowledgeable professional assistance in retail recruitment over a relatively long term is still necessary to meet the Agency's objectives for tenant mix, tax increment and sales tax generation. Environmental Status: AttachmenNs): 1. Professional Services Contract with Economic Development Systems. 2. Proposal from Economic Development Systems dated August 23, 1999. (Referred to as `Exhibit A' in Contract) 3. Transmittal from David Biggs, dated Nov. 17, 1999 Exhibit 1 — Letter from EDS principals. Exhibit 2 — Letters of Reference. Exhibit 3 — Sample Marketing Packet by EDS. EDSRAA032000 -2- 1=219910:19 AM V CITY OF HUNTINGTON BEACH 2000 MAIN STREET OFFICE OF THE CITY CLERK CONNIE BROCKWAY CITYCLERK CALIFORNIA 92648 ETTER OF TRANSNIITTAL OF ITEM APPROVED BY THE CITY COIJNCL/ REDEVELOPLN ENT AGENCY OF TIIE CITY OF IIU1N7r GTO\ BEACII DATE:,Jxn! �I o�000 i ATTENTION: SZ;u � DEPARThIEN7: REGARDI� cfi (� &3 4crlees derwcz r See Attached Action Agenda Item Date of Approval Enclosed For Your Records Is An Executed Copy Of The Above Referenced Agenda Item. Remarks: Connie Brockway City Clerk • Attachments: Action Agenda Page Agreement Bonds Insurance RCA Deed Other' CC: Ad 6 6 oaU z -Z N mb ne, RCA _ A�ernm Ittsuran�e Other A-LI Name Department RCA AVaauear Insurance Other Name Department RCA AFeemcat Insure. -ice Other N Department RCA A¢eemrnt Insurance / Other Risk Management Dept. Insurance Received by Name - Company Name - Date G:Fot[owuplcoverttr 1 Ta l e p hone : 71453"227 i (7) 01103/2000 - Councillxtgency Agenda - Page 7 E-5, jCity Council) Adopt Resolution No. 2000-2 to Modify Certain Benefits for Non - Represented Employees (720.20) —Adopt Resolution No. 2000-2 —'A Resolution of the City Council of the City of Huntington Beach Modifying Salary and Benefits for Calendar Years 2000 and 2001 for Non -Represented Employees." Submitted by the Administrative Services Director [Approved 6-1 (Sullivan No)] E-6. (Redevelopment Aqencv) Approve Contract for Professional Services with Economic Development Systems, Inc. EDS for -Development And Implementation of a Tenant Recruitment Program for the Downtown Area — Main -Pier Redevelopment Project Area (600.10) —Approve and authorize the Chairman and Agency Clerk to execute the attached contract between the Redevelopment Agency and Economic Development Systems, Inc. (EDS) to provide professional services in retail tenant recruitment for a period of one year, in an amount not to exceed S88,720. Submitted by the Executive Director [Approved 6-1 (Garofalo No)] V VO Professional Services Contract Economic Development Systems ATTACHMENT #1 PROFESSIONAL SERVICES CONTRACT BETWEEN THE REDEVELOPMENT AGENCY OF THE AGENCY OF HUNTINGTON BEACH AND ECONOMIC DEVELOPMENT SYSTEMS FOR THE DEVELOPMENT AND IMPLEMENTATION OF A TENANT RECRUITMENT PROGRAM FOR THE DOWNTOWN AREA THIS AGREEMENT is made and entered into this day of v�ODD by and between the Redevelopment Agency of the City of Huntington Beach, a public body of the State of California, hereinafter referred to as "AGENCY," and ECONOMIC DEVELOPMENT SYSTEMS a California partnership, hereinafter referred to as "CONSULTANT." WHEREAS, AGENCY desires to engage the services of a consultant to implement a marketing promotions action plan for recruiting target market restaurants and tenants in the City of Huntington Beach; and Pursuant to documentation on file in the office of the City Clerk, the provisions of the Huntington Beach Municipal Code, Chapter 3.03, relating to procurement of professional service contracts have been complied with; and CONSULTANT has been selected to perform said services, NOW, THEREFORE, it is agreed by AGENCY and CONSULTANT as follows: 1. WORK STATEMENT CONSULTANT shall provide all services as described in the Request for Proposal ("RFP"), and CONSULTANT's Proposal dated August 23, 1999 (both of which are hereinafter referred to as Exhibit "A"), which are attached hereto and incorporated into this AGREEMENT by this reference. These services shall sometimes hereinafter be referred to as the "PROJECT." a g rWcd s y s dq w/9/ t 7/99 L M CONSULTANT hereby designates Jim Harrigan who shall represent it and be its sole contact and agent in all consultations with AGENCY during the performance of this AGREEMENT. 2. AGENCY STAFF ASSISTANCE AGENCY shall assign a staff coordinator to work directly with CONSULTANT in the performance of this AGREEMENT. 3. TIME OF PERFORMANCE Time is of the essence of this AGREEMENT. The services of CONSULTANT are to commence as soon as practicable after the execution of this AGREEMENT and all tasks specified in Exhibit "A" shall be completed no later than twelve (12) months from the date of this AGREEMENT. These times may be extended with the written permission of AGENCY. The time for performance of the tasks identified in Exhibit "A" are generally to be shown in the Scope of Services on the Work Program/Project Schedule. This schedule may be amended to benefit the PROJECT if mutually agreed by AGENCY and CONSULTANT. 4. COMPENSATION In consideration of the performance of the services described herein, AGENCY agrees to pay CONSULTANT a fee not to exceed Eighty -Eight Thousand Seven Hundred Twenty Dollars (S88,720), inclusive of occasional expense. Expenses shall be substantiated by monthly receipts, for use by CONSULTANT in promoting the Project Area to potential tenants and/or developers. Use of funds shall include meals, telephone calls, delivery, graphics, printing, entertainment; the pro -ration with other client cities/agencies, of costs for regional and national retail conferences and travel/hotels for same. The maximum amount of these expenses AGENCY will reimburse CONSULTANT shall not exceed Five Thousand Dollars (S5,000). 2 agrcdcdsysVdw19/17199 Fee Schedule: The fees shall be calculated from the following schedule: Principal billing rate is $170 per hour; Senior Consultant rate is S160 per hour; Senior Analyst rate is 5105 per hour and Administrativc/Technical support rate is S65 per hour. 5. PRIORITIES In the event there are any conflicts or inconsistencies between this AGREEMENT, the AGENCY's RFP, or the CONSULTANT's Proposal, the following order of precedence shall govern: l) AGREEMENT, 2) the CONSULTANT's Proposal, and 3) the AGENCY's RFP. 6. EXTRA WORK In the event AGENCY requires additional services not included in Exhibit "A," or changes in the scope of services described in Exhibit "A," CONSULTANT will undertake such work only after receiving written authorization from AGENCY. Additional compensation for such extra work shall be allowed only if the prior written approval of AGENCY is obtained. 7. METHOD OF PAYMENT A. CONSULTANT shall be entitled to progress payments toward the fixed fee set forth herein in accordance with the progress and payment schedules set forth in Exhibit "A." B. Delivery of work product: A copy of every memorandum, letter, report, calculation and other documentation prepared by CONSULTANT shall be submitted to AGENCY to demonstrate progress toward completion of tasks. In the event AGENCY rejects or has comments on any such product, AGENCY shall identify specific requirements for satisfactory completion. Any such product which has not been formally accepted or rejected by AGENCY shall be deemed accepted. K, agrcc/cdsysVd w/9! 17!99 C. CONSULTANT shall submit to AGENCY an invoice for each progress payment due. Such invoice shall: 1) Reference this AGREEMENT; 2) Describe the services performed; 3) Show the total amount of the payment due; 4) Include a certification by a principal member of CONSULTANT's firm that the work has been performed in accordance with the provisions of this AGREEMENT; and 5) For all payments include an estimate of the percentage of work completed. Upon submission of any such invoice, if AGENCY is satisfied that CONSULTANT is making satisfactory progress toward completion of tasks in accordance with this AGREEMENT, AGENCY shall promptly approve the invoice, in which event payment shall be made within thirty (30) days of receipt of the invoice by AGENCY. Such approval shall not be unreasonably withheld. If AGENCY does not approve an invoice, AGENCY shall notify CONSULTANT in writing of the reasons for non -approval within seven (7) calendar days of receipt of the invoice, and the schedule of performance set forth in Exhibit "A" shall be suspended until the parties agree that past performance by CONSULTANT is in, or has been brought into compliance, or until this AGREEMENT is terminated as provided herein. D. Any billings for extra work or additional services authorized by AGENCY shall be invoiced separately to AGENCY. Such invoice shall contain all of the information required above, and in addition shall list the hours expended and hourly rate charged for such time. Such invoices shall be approved by AGENCY if the work performed is in accordance with 4 agree/ed syst/rj w/9/ 17/99 the extra work or additional services requested, and if AGENCY is satisfied that the statement of hours worked and costs incurred is accurate. Such approval shall not be unreasonably withheld. Any dispute between the parties concerning payment of such an invoice shall be treated as separate and apart from the ongoing performance of the remainder of this AGREEMENT. S. DISPOSITION OF PLANS, ESTIMATES AND OTHER DOCUMENTS CONSULTANT agrees that all materials prepared hereunder, including all original drawings, designs, reports, both field and office notices, calculations, maps, memoranda, letters and other documents, shall be turned over to AGENCY upon termination of this AGREEMENT or upon PROJECT completion, whichever shall occur first. In the event this AGREEMENT is terminated, said materials may be used by AGENCY in the completion of the PROJECT or as it otherwise sees fit. Title to said materials shall pass to AGENCY upon payment of fees determined to be earned by CONSULTANT to the point of termination or completion of the PROJECT, whichever is applicable. CONSULTANT shall be entitled to retain copies of all data prepared hereunder. 9. HOLD HARMLESS CONSULTANT shall protect, defend, indemnify and hold harmless AGENCY, its officers, officials, employees, and agents from and against any and all liability, loss, damage, expenses, costs (including without limitation, costs and fees of litigation of every nature) arising out of or in connection with performance of this AGREEMENT or its failure to comply with any of its obligations contained in this AGREEMENT except such loss or damage which was caused by the sole negligence or willful misconduct of AGENCY. 5 agrcc/ed5ys6'dW/9/11/99 10. WORKERS' COMPENSATION INSURANCE Pursuant to California Labor Code Section 1861, CONSULTANT acknowledges awareness of Section 3700 et seq. of said Code, which requires every employer to be insured against liability for workers' compensation; CONSULTANT covenants that it will comply with such provisions prior to commencing performance of the work hereunder. CONSULTANT shall maintain workers' compensation insurance in an amount of not less than One Hundred Thousand Dollars (S100,000) bodily injury by accident, each occurrence, One Hundred Thousand Dollars (S100,000) bodily injury by disease, each employee, Two Hundred Filly Thousand Dollars ($250,000) bodily injury by disease, policy limit. CONSULTANT shall require all subcontractors to provide such workers' compensation insurance for all of the subcontractors' employees. CONSULTANT shall furnish to AGENCY a certificate of waiver of subrogation under the terms of the workers' compensation insurance and CONSULTANT shall similarly require all subcontractors to waive subrogation. 11. GENERAL LIABILITY INSURANCE In addition to the workers' compensation insurance and CONSULTANT's covenant to indemnify AGENCY, CONSULTANT shall obtain and fumish to AGENCY, a policy of general public liability insurance, including motor vehicle coverage covering the PROJECT. Said policy shall indemnify CONSULTANT, its officers, agents and employecs, while acting within the scope of their duties, against any and all claims arising out of or in connection with the PROJECT, and shall provide coverage in not less than the following amount: combined single limit bodily injury and property damage, including products/complcted operations liability and blanket contractual liability, of $1,000,000 per occurrence. If coverage is provided under a form which includes a designated general aggregate 6 Sgrc /edsysVdw/9/lIt" 1.J limit, the aggregate limit must be no less than S 1,000,000 for this PROJECT. Said policy shall name AGENCY, its agents, its officers, employees and volunteers as Additional Insureds, and shall specifically provide that any other insurance coverage which may be applicable to the PR03ECT shall be deemed excess coverage and that CONSULTANT's insurance shall be primary. Under no circumstances shall the above -mentioned insurance contain a self - insured retention, or a "deductible" or any other similar form of limitation on the required coverage. 12. PROFESSIONAL LIABILITY INSURANCE CONSULTANT shall furnish a professional liability insurance policy covering the work performed by it hereunder. Said policy shall provide coverage for CONSULTANT's professional liability in an amount not less than S1,000,000 per occurrence and in the aggregate. A claims -made policy shall be acceptable if the policy further provides that: A. The policy retroactive date coincides with or precedes the professional services contractor's start of work (including subsequent policies purchased as renewals or replacements). B. CONSULTANT will make every effort to maintain similar insurance during the required extended period of coverage following project completion, including the requirement of adding all additional insureds. C. if insurance is terminated for any reason, CONSULTANT agrees to purchase an extended reporting provision of at least vvvo (2) years to report claims arising from work performed in connection with this AGREEMENT. 7 sgreo'edsysVw19/17:99 D. The reporting of circumstances or incidents that might give rise to future claims. 13. CERTIFICATES OF INSURANCE: Prior to commencing performance of the work hereunder, CONSULTANT. shall furnish to CITY certificates of insurance subject to approval of the City Attorney evidencing the foregoing insurance coverages as required by this AGREEMENT; said certificates shall: A. provide the name and policy number of each carrier and policy; B. shall state that the policy is currently in force; and C. shall promise that such policies shall not be suspended, voided or canceled by either party, reduced in coverage or in limits except after thirty (30) days prior written notice; however, ten (10) days prior written notice in the event of cancellation for nonpayment of premium. CONSULTANT shall maintain the foregoing insurance coverages in force until the work under this AGREEMENT is fully completed and accepted by AGENCY. The requirement for carrying the foregoing insurance coverages shall not derogate from the provisions for indemnification of AGENCY by CONSULTANT under the AGREEMENT. AGENCY or its representative shall at all times have the right to demand the original or a copy of all said policies of insurance. CONSULTANT shall pay, in a prompt and timely manner, the premiums on all insurance hereinabove required. 14. INDEPENDENT CONTRACTOR CONSULTANT is, and shall be, acting at all times in the performance of this AGREEMENT as an independent contractor. CONSULTANT shall secure at its expense, and be responsible for any and all payment of all tares, social security, state disability insurance 8 agrW0sysvgw/9:17/99 ME compensation, unemployment compensation and other payroll deductions for CONSULTANT and its officers, agents and employees and all business licenses, if any, in connection with the services to be performed hereunder. 15. TERMINATION OF AGREEMENT All work required hereunder shall be performed in a good and workmanlike manner. AGENCY may terminate CONSULTANT's services hereunder at any time with or without cause, and whether or not PROJECT is fully complete. Any termination of this AGREEMENT by AGENCY shall be made in writing, notice of which shall be delivered to CONSULTANT as provided herein. 16. ASSIGNMENT AND SUBCONTRACTING This AGREEMENT is a personal service contract and the supervisory work hereunder shall not be delegated by CONSULTANT to any other person or entity without the consent of AGENCY. 17. COPYRIGHTSIPATENTS AGENCY shall own all rights to any patent or copyright on any work, item or material produced as a result of this AGREEMENT. 18. AGENCY EMPLOYEES AND OFFICIALS CONSULTANT shall employ no AGENCY official nor any regular AGENCY employee in the work performed pursuant to this AGREEMENT. No officer or employee of AGENCY shall have any financial interest in this AGREEMENT in violation of the applicable provisions of the California Government Code. 9 a gr cecd 5 ys b'ry N l9/ i'!99 V 19. NOTICES Any notice or special instructions required to be given in writing under this AGREEMENT shall be given either by personal delivery to CONSULTANT's agent (as designated in Section 1 hereinabove) or to AGENCY's Director of Economic as the situation shall warrant, or by enclosing the same in a sealed envelope, postage prepaid, and depositing the same in the United States Postal Service, addressed as follows: TO AGENCY: David Biggs, Director of Economic Development City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 20. IMMIGRATION TO CONSULTANT: Jim Harrigan, Principal Economic Development Systems 436 Calle Mayor, 2nd FI. Redondo Beach, CA 90277 CONSULTANT shall be responsible for full compliance with the immigration and naturalization laws of the United States and shall, in particular, comply with the provisions of the United States Code regarding employment verification. 21. LEGAL SERVICES SUBCONTRACTING PROHIBITED CONSULTANT and AGENCY agree that AGENCY is not liable for payment of any subcontractor work involving legal services, and that such legal services are expressly outside the scope of services contemplated hereunder. CONSULTANT understands that pursuant to Huntington Beach City Charter Section 309, the City Attorney is the exclusive legal counsel for AGENCY; and AGENCY shall not be liable for payment of any legal services expenses incurred by CONSULTANT. Fi7 agrwcdsysdgw/9/j I99 22. ATTORNEY' S FEES In the event suit is brought by either party to enforce the terms and provisions of this AGREEMENT or to secure the performance hereof, each party shall bear its own attorney's fees. 23. ENTIRETY The foregoing, and Exhibit "A" attached hereto, set forth the entire AGREEMENT between the parties. IN WITNESS WHEREOF, the parties hereto have caused this AGREEMENT to be executed by and through their authorized offices the day, month and year first above written. CONSULTANT: ECONOMIC DEVELOPMENT SYSTEMS I_tX General Partner WED AND APPROVED: Executive Direo6r REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body of the State of California ( ��- I a &"taylo Chairperson ATTEST: 10 15'o� - &a Ageticy Clerk /i aped APPROVED AS TO FORM: Agency Attorney INITIATED AND APPROVED: &d r &I Director of Economi Development agree/cdsyst/dw/9/21/99 11 v �,W) Proposal from Economic Development Systems Dated August 23,1999 (Referred to as "Fxhihit A" in Contract ATTACHMENT #2 e- M Economic Development Systems Presented to Mr. Jim Lamb Project Manager City of Huntington Beach Jim Harrigan and Pat Hurst Principals Economic Development Systems August 23,1999 M Economic Development Systems PROPOSAL FOR THE DEVELOPMENT AND IMPLEMENTATION OF A TENANT RECRUITMENT PROGRAM FOR DOWNTOWN HUNTINGTON BEACH INTRODUCTION Economic Development Systems ("EDS") is pleased to submit this proposal for professional services with respect to the above subject. It is understood that the Huntington Beach Redevelopment Agency wished to hire a retail recruitment consultant to attract new retail and restaurant tenants to the downtown area. GOALS The purpose of this Retail Recruitment Program is to establish Downtown Huntington Beach as the Business, Entertainment and Social Center -point of the Community by providing a strategy for establishing a desirable increase, upgrade and diversity in the mix of retail uses. This Plan will also capitalize on the retention of successful businesses now located in the Program Area, as well as to build upon and enhance the existing revitalization programs of the Huntington Beach Redevelopment Agency. Specific goals of the program include the following: 1. To continue to develop a realistic market trend analysis through the review and evaluation of current, available market data for the Huntington Beach trade area. 2. To continue to determine current retail market trends for "traditional" retailers, restaurateurs and entertainment uses, especially concepts that have not been established in the Huntington Beach trade area. 3. To continue to create a retail recruitment action "plan" aimed at actively involving Area landlords, existing tenants, commercial brokers, developers, investors and City management and staff. 4. To continue to recommend target niche concepts aimed at encouraging uses to compliment the existing retail businesses in the Program Area. 5. To continue to provide recommended tenant absorption direction for in -fill of retail space. ME Economic Development Systems 6. To continue to create a retail recruitment plan that provides recommendations that distinguish the Program Area from other retail already existing or planned in the greater Huntington Beach trade area. 7. To continue to address, and assign a high priority to, the integration of existing Downtown Huntington Beach Program Area's vacant spaces/buildings into the overall marketing plan, including recommendations for the buildings' opportunities and constraints from a marketing and leasing perspective. 8. To continue to identify potential leasing and development sites for retail use. All recommendations will be made after consultation with City management and staff and appropriate stakeholders. 9. To continue to determine the names and locational requirements of target local, regional and national tenant types while identifying specific sites to accommodate their needs. 10. To continue to draft and implement an updated action plan for recruiting target market retailers, restaurateurs, attractions, developers and/or investors and to identify and assist in the development of the specific tools required to accomplish these tasks based on successful strategies utilized by the other 28 downtown entertainment, shopping, dining districts into which EDS has successfully introduced this Program. Development and production of brochures, maps and videos are not included in the budget presented herein. SCOPE OF WORK To achieve the above goals, the following scope of work is required: 1. Kick -Off Meeting with City management and staff to discuss assistance, goals and timetables for the year. 2. Review provided inventory within the Program Area and review area retail uses. 3. Analyze existing retail sales tax data for the Program Area. (It is understood that EDS will be provided by the Agency/Task Force with a detailed itemization of sales tax information for all uses within the Program Area to be analyzed on a confidential basis.) 4. Review provided listings of competition in key shopping areas and centers that provide competitive shopping, dining and/or entertainment on an ongoing basis. r4 Economic Development Svstems 5. Prepare an updated concise, demographic overview of the greater trade area residents and, if possible, include tourists, visitors and daytime "employment" population. 6. Continue to contact knowledgeable real estate and retail management and/or leasing contacts who are familiar with Program Area and its competition. 7. Continue to research select local, regional and national retailers. 8. Continue to recommend the highest and best use for Program Area's vacant spaces and development sites as they become available. 9. Continue to create and implement a marketing/promotions action plan for recruiting the target retailers. This will include direct contact with potential tenants, investors, and developers and / or their respective brokers; representatives; production of specific market information per tenant request; the distribution of an updated Retail Vacancy Roster that has been compiled, maintained and published by City staff; ongoing effort to expand the original prospective tenant roster; coordinate tours and meetings with potential tenants and/or developers; describe all economic incentives; and, assist throughout negotiation/occupancy as necessary. APPROACH TO AREA PROMOTIONIANTI-FAVORITISM CONCERNS It is understood that the Consultant would not be actively representing specific leasable properties in the Program Area in lease transactions, but would represent the area as a whole. Tenant referrals will be made directly to the leasing agents for the properties involved. All prospective tenants will be provided with information which specifically addresses their individual space and area requirements. The tenant will then select and eliminate properties as they believe necessary. (on -going maintenance and update of Retail Vacancy Roster to be provided by Agency staff). Consultant shall respond accordingly to those properties of interest, via the listing broker, and will then monitor and participate in the transaction as required. It has been our experience that dialogue with "hot prospects" must be on an ongoing basis to insure that if the tenant's first choice does not work out, the second alternative is then pursued. It is also highly probable that the Consultant will contact and recruit tenants that are not represented by an exclusive broker. Upon request by. the respective tenant, Consultant shall provide a list of at least three Huntington Beach area commercial brokers to represent said tenant. Tenant shall be fully responsible for further selection of a specific broker. Should there be several area brokers who should be presented as candidates, then a full listing can be rotated on a case -by -case basis. 3 Economic Development Systems It is also understood that any tenants which do not select the Program Area will be encouraged to look elsewhere in the City for appropriate locations. PROJECT TEAM MEMB1✓RS Jim Harrigan and Pat Hurst, Principals of Economic Development Systems will be personally responsible for conducting and supervising the production of the assignment. Their resume/ professional qualifications are attached. FEE 5CHEDULE - October 1 1999 through September 30,2000 EDS 1999 rates for this assignment are as follows: $170.00 per hour for Principal billing rate; Senior Consultant rate, $155 per hour; and, if needed, the hourly billing rate for Senior Analyst will be $105 per hour and for Administrative / Technical support, $65 per hour. It is projected that the hourly mix for this assignment will be 4 hours of Principal time per week and six hours of Senior Consultant time per week. This mix should average the hourly rate at approximately $160 per hour throughout the assignment. EXPENSES The City shall reimburse expenses (billed at 110% and substantiated by monthly receipts) for use by Economic Development Systems in directly related job expenses, including restaurant research and/or promoting the Program Areas to potential tenants, investors and/or developers. Use of the funds may include, but not limited to, air fares; hotels; ground transportation/mileage; telephone calls; delivery; graphics and printing; entertainment/meals; meals while traveling; postage; entertainment; the pro- ration, with other client Agencies/Cities/ Associations, of costs for regional and national retail conferences (e.g., ICSC Conferences; Trade Conventions, etc.) and travel/hotel rooms for same. The maximum amount of these expenses will not exceed $5,000.00 for the twelve month contract. TOTAL FEES AND EXPENSES Principal: $170 x 4 hours weekly x 52 weeks = $ 35,360.00 Senior Consultant: $155 x 6 hours weekly x 52 weeks = $ 48,360.00 Expenses: Flat rate of $5,000 S 5,000.00 Total Fees and Expenses: $ 88,720.00 n V rco""mie Development Systems FEE SCHEDULE - October I, 2000 through September 30.2001 EDS 2000 rates for this assignment are as follows: $175.00 per hour for Principal billing rate; Senior Consultant rate, $160 per hour; and, if needed, the hourly billing rate for Senior Analyst will be $105 per hour and for Administrative / Technical support, $65 per hour. It is projected that the hourly mix for this assignment will be 4 hours of Principal time per week and six hours of Senior Consultant time per week. This mix should average the hourly rate at approximately $166 per hour throughout the assignment. EXPENSES The City shall reimburse expenses (billed at 110% and substantiated by monthly receipts) for use by Economic Development Systems in directly related job expenses, including restaurant research and/or promoting the Program Areas to potential tenants, investors and/or developers. Use of the funds may include, but not limited to, air fares; hotels; ground transportation/mileage; telephone calls; delivery; graphics and printing; entertainment/meals; meals while traveling; postage; entertainment; the pro- ration, with other client Agencies/Cities/ Associations, of costs for regional and national retail conferences (e.g., ICSC Conferences; Trade Conventions, etc.) and travel/hotel rooms for same. The maximum amount of these expenses will not exceed $5,000.00 for the twelve month contract. TOTAL FEES AND EXPENSES Principal: $175 x 4 hours weekly x 52 weeks = $ 36,400.00 Senior Consultant: $160 x 6 hours weekly x 52 weeks = $ 49,920.00 Expenses: Flat rate of $5,000 5 5,000.00 Total Fees and Expenses: $ 91,320.00 TIME ALLOCATION As of today, August 23, 1999, the Principal and Senior Consultant will allocate the noted hourly allotment of time for this assignment and can schedule a commencement of services for October 1, 1999. (Please note that as outstanding proposals/ contracts are executed, this time commitment and commencement date may possibly be altered or delayed.) 5 OR Economic Development systenls BILLING ARRANGEMENTS Monthly invoices will be submitted approximately on the first of each month_ Payment shall be due within thirty (30) days of the date of the billing statement. In the event payment is not received within said thirty (30) day period, it is the policy of the company to cease work until such time that the billings are paid in full. Amounts outstanding thirty (30) days or more from the date of the billing statement will be charged a rebilling amount of two percent (2%) per month (24% per annum). Should this assignment be abandoned or terminated for any reason whatsoever during the progress of the work, billings will be rendered up to the date of said abandonment or termination and shall immediately become due and payable. In the event of any.dispute relative to this agreement, the prevailing party shall be entitled to attorney's fees and costs. This agreement shall be construed, interpreted, and governed for any and all purposes by the laws of the State of California, and any action on this assignment shall be commenced in the County of Los Angeles, State of California. FIRM QUALIFICATIONS Economic Development Systems {"EDS"), a general partnership based in Redondo Beach, California, provides consulting services to city governments, redevelopment agencies, Business Improvement Districts (BIDS), real estate developers, institutional investors, land owners, and other consulting firms. A staff of experienced professionals with backgrounds in real estate, retail, marketing, management and research form the core of EDS. Economic Development Systems, a partnership, founded in 1991 by Pat S. Hurst, and formalized in 1993 when co -principal James L. (Jim) Harrigan joined the firm, provides retail recruitment services focusing on: • Market Assessment • Site Selection Criteria • Tenant Recruitment • Tenant Negotiations • User Profiles • Plan Implementation • Strategic Plans + Ongoing General Consultation These services compliment traditional demographic, census and market statistic studies provided by firms such as Economics Research Associates, Seifel Associates, etc, To help clients better understand their markets and their prospective tenants, EDS examines and analyzes the relevant retail, demographic, and social trends as well as factors that impact a project or an area and then recruit the specific tenants to fill those needs by working closely with City staff, landlords, commercial real estate firms, and local business owners. C. Economic Development Systems EDS provides a coordinated retail recruitment program to prospective businesses currently located outside a given market area by providing outreach to local, regional and national brokers who represent the targeted retailers. The campaign includes promotion of all applicable economic incentives available to retailers such as the Enterprise Zone, Revitalization Zone, Loan Programs and/or other financial incentives. EDS' primary responsibility is to reach retailers by personal contact and to match such retailers with specific locations that can accommodate their needs. Upon confirmation of the prospective tenant's interest, EDS assists in identifying various leasing and financing strategics that will culminate in a commitment on the retailer's behalf to the market area. This includes proposal analysis, lease oversight and constant monitoring of the transaction. Economic Development Systems is/has providing consulting services for the following, as an example, clients/associates: • City of Long Beach • City of Pasadena • City of Santa Paula • City of Culver City • City of San Jose • City of Santa Ana • City of Fullerton • City of Poway • City of Palmdale • City of Escondido • City of Azusa • City of Lawndale CERTIFICATIONS • City of Los Angeles • City of Hermosa Beach • City of Rialto • City of Riverside • City of Huntington Beach • Asset Strategies • The Arroyo Group • Gensler • Economic Research Associates • Hyett/Palma Economic Development Systems is certified by the State of California, Division of Civil Rights for participation in Federally and State funded contracts as a woman -owned and operated small business (Certification Number: CT-023244). r1 Economic Development Svstenls FOUR PROFILE PROJECTS 1. Huntington Beach - Downtown Area EDS is providing services to the City of Huntington Beach Redevelopment Agency for the development of a retail recruitment campaign to bring new regional and national retailers into the internationally recognized "Surf City". The scope of work includes not only establishing a data bank of the potential tenants, but forwarding market information, scheduling tours and meetings with key decision makers representing focus tenants. Contact: Mr. David Biggs Director of Economic Development City of Huntington Beach 2000 Main Street Huntington Beach, California 92645 (714) 536-5470 Date of Service: April 1997 - Present Services Delivered: An expanding portfolio of tenants including Kincaids, California Pizza, Yujean Kang and Culinary Adventures as well as Laemmle Art Cinema who are interested in locations in the downtown area. Broker and landlord outreach program continues on a regular basis. 2. City of Long Beach - Various Sub -Markets As a Retail Recruitment Consultant since 1991 for the City of Long Beach (population 430,000), EDS has worked closely with the City staff in the revitalization of the downtown shopping, restaurant and entertainment district. The program includes promoting not only specific economic incentives to key retailers, but providing additional support to property owners and commercial brokers as well. Additional support includes expansion programs for existing retailers, profiles of existing properties for lease and/or sale and demographic profile compilation for specific tenant recruitment. EDS is responsible for new store locations for Crate & Barrel, Z Gallerie, Limited Express/ Bath & Body Works, Trilusa Restaurant, Chicago for Ribs, Starbuck's, Good Guys, Tower Records, Barnes & Noble, and many others. 1.1 M Economic Development Svslem� Other Long Beach area Retail Recruitment projects include: A 100-acre Power/Entertainment Center proposed at the 605 Freeway and Carson Boulevard, featuring a multi -screen Edwards Cinema, restaurants, shopping, etc.; revitalization of the Marina Pacifica Mall on Pacific Coast Highway, including Barnes & Noble and the WOW! store (Good Guys/Tower Records); a Redevelopment City Revitalization program for Los Altos Shopping Center (45 acres), including new retailers such as Bristol Farms and Circuit City; the Bixby Knolls Community Revitalization Area, consisting of a neighborhood shopping center including Orchard Supply and a new Von's grocery store, as well as streetfront retail and commercial districts; and, Queensway Bay, a 300-acre waterfront destination project featuring a new aquarium Which opened in June, 1995. Contact: Ms. Susan F. Shick Executive Director Community Development Department City of Long Beach 333 West Ocean, 3rd Floor Long Beach, California 90S02 (562) 570-6570 Date of Service: 1991 - Present Services Delivered: • Addition of 200,000 square feet of new retail to Pine Avenue; • Revitalization of two neighborhood shopping centers by recruiting Bristol Farms, Borders Books and Music, Sears (to replace Broadway) at Los Altos, and Barnes & Noble and AMC Theater expansion at Marina Pacifica; • Introduction of IMAX Theater for Queensway Bay; and a culinary academy for the Downtown area; • Production/coordination of four city videos, three brochures, and numerous slide shows and promotional packages for recruitment of new retail. 0 Economic Development Systems 3. City of Pasadena - OId Pas adena!Playhouse District The purpose in hiring EDS for the Old Pasadena retail district was to create a "proactive" program to address tenant mix issues in the remaining build -out of the district. This effort includes communication and cooperation with property owners, commercial brokers, developers, existing retailers, city staff and elected officials. While the Old Pasadena retail district is a very well known popular destination, the retail recruitment effort focuses on striking a balance among the various categories of retail while maintaining.the historic character of the district. In addition, a list of "key tenants," established and based upon individual tenant requirements, space availability, etc., was used for specific tenant recruitment efforts. Supplemental information such as area maps, property profiles, vacancy rosters, etc. have been developed to be included in the promotional package. Tenants such as The Cheesecake Factory, Crate & Barrel Home Store, Pottery Barn, Saks Main Street Store, Earthsake and Buca de Beppo, to name a few, are tenants targeted by EDS for the District. Contact: Marsha V. Rood, AICP Department Operations Administrator Housing and Development Department City of Pasadena 100 North Garfield Avenue Pasadena, California 91109-7215 (626) 7444653 Date of Service: December 1994 - present Services Delivered: Addition of 137,000 square feet to the Old Pasadena Marketplace. Active tenants such as The Galleries of Neiman Marcus, Saks Men's Store, Villeroy & Boch, Ralph Lauren Shops, etc., total over 350,000 square feet; and • Production and coordination of a retail recruitment package including demographics, maps, site plans, etc. 10 Economic Development Systems 4. City of Los Angeles - Westwood Village EDS provided services to Westwood Village for the development of a retail recruitment campaign to bring new regional and national retailers into what was once "the" urban streetfront environment in Southern California. The scope of work included not only establishing a data bank of the 600,000 square feet of properties, but developing recruitment brochures, color maps and demographic information to be used in the retail attraction effort. Contact: Mr. Robert Walsh Executive Director Westwood Village Community Alliance 1081 Westwood Boulevard, Suite 218 Los Angeles, California 90024 (310) 208-1984 Date of Service: January 1996 - August 1998 Services Delivered: Recruitment package including a four -page, four-color brochure, retail recruitment map, and 9 x 12 presentation folders, as well as a project logo and letterhead package; and, A portfolio of restaurateurs, including Mi Piaci, Palamino, Mr. Chow, Kincaids, California Pizza Kitchen and Wolfgang Puck restaurants; Kings Fish House, P.F. Chang's and Border Grill have Q[ are locating into the Village. PRINCIPAL QUALIFICATIONS Pat S. Hurst Principal Pat S. Hurst has more than fifteen years of diverse experience in all phases of commercial real estate in the Greater Los Angeles area including marketing, promotion, leasing, tenant recruitment, business development, financial analysis, construction, etc. She holds a Bachelor of Science Degree from Tennessee Technological University and was a Dean's List Honors Recipient. Current memberships include The International Council of Shopping Centers, Urban Land Institute, and California Association for Local Economic Development. 11 Economic Development systems ER While Ms. Hurst's focus has been retail development for the past few years, her experience in both corporate and retail recruitment has strengthened her skills in market research and economic development. During her career in corporate real estate, she negotiated over 1.5 million square feet of lease transactions. As Leasing Coordinator for the development division of Cushman Realty Corporation, she negotiated more than 500,000 square feet of leases with tenants such as Disney Channel and Walt Disney Pictures, Teledyne, Wells Fargo Bank, Mobil Oil, Polygram Records and Warner Brothers. Prior to her years at Cushman Realty Corporation, Ms. Hurst worked with Reliance Development Company as Leasing Representative for the 1000 Wilshire Boulevard Building in Downtown Los Angeles and the CIGNA Health Plan building located at 505 North Brand in Glendale. As a Leasing Specialist with American Trading Real Estate Company, she worked on the promotional campaign for the 880,000 square foot Glendale Square project planned for the immediate commercial district of Glendale. She also served as Vice President of Marketing for Howard Development Corporation in Glendale, and Project Manager for Mitchell Development in Sherman Oaks. As a result of her working knowledge of the commercial office and retail real estate markets, Ms. Hurst provides her clients with experience ranging from the marketing of individual retail and office projects, to assisting with the revitalization of business and commercial districts throughout the Greater Los Angeles area. James L. Harrigan Principal For the past twenty-two years, Jim Harrigan has been involved as a broker and supervising manager in over 1,800 separate commercial lease or sale transactions for a total consideration in excess of $1.25 billion. Before joining Economic Development Systems with Pat S. Hurst in 1993, Jim recruited, hired, trained, and counseled over 105 of the top retail, office, industrial, and investment brokers in the greater Southern California commercial market. During this time, Jim assisted in creating and closing some of the areas largest real estate deals for three diverse commercial real estate companies: AshwilI-Burke and Company (1978-1982), Charles Dunn Company (1982-1990) and The Goodglick Company (1990-1993). From a 1978 broker in the San Fernando Valley for Ashwill-Burke & Company, Jim was promoted to Sales Manager of Ashwill-Burke's San Diego offices. In 1982, as Regional Manager, he formed the Industrial Division of the Charles Dunn Company and in 1987, he started the Retail Division of the Dunn Company's Westside office. As Vice President/ General Manager of the Goodglick Company, Jim led a group of 12 Economic Development Systems mature, highly successful industrial brokers in both the LAX and Long Beach locations. Following his recruitment by Union Oil in 1969, while still a student at Loyola University of Los Angeles, Jim was requested to report to UNOCAL's marketing headquarters in Chicago following his graduation. For three years he underwent a highly sophisticated training program in sales and marketing management. He was then sent to corporate headquarters in Los Angeles, where he held eight varied and increasingly more responsible positions until his entry into real estate brokerage during 1978. With this varied and strong management background Jim Harrigan, as Principal of Economic Development Systems, brings over 25 years of marketing success to the Southern California marketplace. His actual experience in commercial and industrial real estate spans the entire six county area of Southern California. His working knowledge and relationships with retailers and commercial real estate brokers throughout this market is second to none. Judy M. Miller Senior Consultant With over eleven years of real estate brokerage experience, Judy Miller has been involved in many aspects of commercial real estate assisting both landlords and tenant with retail, commercial, industrial and investment transactions. During her tenure at EDS, she has been directly involved in the Retail Recruitment efforts for Old Pasadena, Playhouse District, Studio District in Culver City, Bixby Knolls in Long Beach and Downtown Huntington Beach area. Prior to joining EDS, she specialized in tenant representation and commercial leasing in the San Fernando Valley and enjoyed helping her client's achieve their objectives. Judy worked with B'eitler Commercial Realty (1988-1994) and completed training at Coldwell Banker Real Estate Services (1987 - 1988). Currently she is a member of the International Council of Shopping Centers and maintains a Real Estate Sales Person License in the State of California. Judy holds a Bachelor of Art Degree from University of California, Los Angeles and a Masters of Business Administration also from University of California, Los Angeles. Her MBA studies emphasized marketing and finance with course work in market research and strategic studies. After graduating from business school, Judy was recruited by Arthur Young & Company, now Ernst & Young, an international accounting firm. A California -licensed CPA, Judy worked as a Senior Tax Specialist and in addition to client responsibilities was active in new business development and recruiting for the firm. 13 Economic Development Systems Judy brings a varied background to her work as a consultant with EDS. She takes pride in her hard work and persistence as well as her network of retail and restaurant tenants and commercial real estate brokers throughout Southern California. CLIENT REFERENCES City of Long Beach Susan F. Shick Director of Community Development City of Long Beach 333 West Ocean Boulevard, 3rd Floor Long Beach, California 90802 (562) 570-6570 Barbara Kaiser Redevelopment Manager City of Long Beach 333 West Ocean Boulevard, 3rd Floor Long Beach, California 90802 (562) 570-6340 Gerald R. Miller Deputy City Manager City of Long Beach 333 West Ocean Boulevard, 13th Floor Long Beach, California 90802 (562) 570-6916 Amy Bodek Redevelopment Administrator City of Long Beach 333 West Ocean Boulevard, 3rd Floor Long Beach, California 90802 (562) 570-6037 City of San Jose Frank Taylor Executive Director The Redevelopment Agency of - the City of Sari Jose 50 West San Fernando Street, Suite 1100 San Jose, California 95113 (408) 277-4744 Francine Principe Senior Development Officer The Redevelopment Agency of the City of San Jose 50 West San Fernando Street, Suite 900 San Jose, California 95113 (408) 277-4744 City of Pasadena Marsha V. Rood, AICP Development Administrator Housing and Development Department City of Pasadena 100 North Garfield Avenue Pasadena, California 91109-7215 (626) 744-4653 14 Erlinda Romo Business District Coordinator Housing and Development Department City of Pasadena 100 North Garfield Avenue Pasadena, California 91109-7215 (626) 7444653 Economic Development systems City of Culver City Mark H. Winogrond Chief Administrative Officer City of Culver City 9770 Culver Boulevard, 3rd Floor Culver City, California 90232-0507 (310) 253-6001 Miriam Mack Redevelopment Administrator City of Culver City 9770 Culver Boulevard, 3rd Floor Culver City, California 90232-0507 (310) 253-5762 CONSULTANT -REFERENCES David A. Wilcox, AICP Senior Vice President Economics Research Associates 10990 Wilshire Boulevard, Suite 1600 Los Angeles, California 90024 (310) 477-9585 Allan D. Kotin Principal PCR Kotin 12100 Wilshire Boulevard, Suite 1050 Los Angeles, California 90025 (310) 820-0900 BROKER REFERENCES Steve Nelson Senior Broker CB Richard Ellis 330 North Brand Boulevard, Suite 160 Glendale, California 91203 (818) 502-6726 Richard Rizika Senior Broker CB Richard Ellis 990 West 190th Street, Suite 100 Torrance, California 90502 (310) 516-2338 Greg Whitney Vice -President CB Richard Ellis 15303 Ventura Boulevard, Suite 200 Sherman Oaks, California 91403 (818) 907-4704 15 Arne Freeman (Crate & Barrel, The Limited) Principal Coast Commercial Brokerage 438 Carrol Canal Venice, California 90291 (310) 822-0309 Brian Tracy Managing Partner Net Lease Properties 22-5 South Sepulveda, Suite 280 Manhattan Beach, California 90266 (310) 376-2700 Kyle Kavanaugh President Main and Main, Inc. 4100 Newport Place, Suite 660 Newport Beach, California (949) 476-2700 economic Ue�•efopme�ii Svstcros BROKER REFERENCE - continued Linda Crowley Leslie Webster President Principal Urban Street Advisors Metropolitan Pacific 4482 Barrana Parkway, Suite I80-161 100 Wilshire Boulevard, Suite 900 Irvine, California 92604 Santa Monica, California 90401 (949) 733-3560 (310) 576-1252 INVESTOR - DEVELOPER REFERENCES Shaul Kuba Principal CIM Group, Inc. 10960 Wilshire Boulevard, Suite 500 Los Angeles, California (310) 966-1710 Bill Stone Vice -President of Management DDR Oliver McMillan 4350 Executive Drive, Suite 300 San Diego, California 92121 (619) 597-2111 16 ATTACHMENTS fh OPPing ;HOPPIN'Gi CENTERSOi SE'PTEMSEA.-- 1�997- Crate & Barrel was one of the first of several retailers to respond to a successful drive by municipal of icicls to entice businesses Into tong Beach, Calif.'s depressed downtown. Public -private cooperation i� vital for urban renewal F. By Melanie Canty LONG BEACH, Calif. — In the early xf I 1990s, the US. Navy pulled up anchors here and relocated to San Diego, taking; its sailers and theirspending power with it. W ithout patrons, the various Navy haunts soot left as well, and Pine Avenue. once the throl.bing pulse of this vibrant port town, was left I) die- B.il as the saying goes, that was then. Thes^ days the avenue is reclaiming its power and making a splash, which many hope will soon ripple to other parts of the city. ,-here was a decision to take a look and to reim est in Pine Avenue, and make that sort of the core and the heart of the city again; said Barb-ira A. Kaiser, redevelopment bureau man.iger of the City of Long Beach. 'It was prett.: much rundown, and there was hardly any retail left on the street' So city officials devised a 12-point redevel- opm nt program in which they cleaned up the streets and alleys and built offices, resi- dent sl apartments and hotels. They placed planters around pedestrian areas, set up hot dog and cappuccino vendors and began a farm. •rs market and artsand-crafts fair. TI-ey provided uniformed guides to walk arou A and help visitors find their way, pro- viding them with radio contact with the po- lice, should the need arise. But the crowning glory. the driving force that officials say has pumped blood back into Pine Avenue's drained 'veins, is the retail, restaurant and entertainment facilities brought by Economic Development Systems (EDS), a Rancho Palos Verdes, Calif. -based re- tail consultancy hired by ll:e city. Led by Pat S. Hunt and Jim Harrigan, both veterans of commercial brokerage. EDS has helped make Pine Avenue the Main Street of downtown Long Beach. 'Here you've got 350 days of nice weather a year.' his. Hunt said, describing the area's strong lure. '[Visitors] have got 11 miles of sandy beaches, they've got 2,500 hotel rooms, they've got great views of the ocean, great views of the Queen Mary and they have at} soluiely nowhere to go to spend any money" In addition, she said Long Beach has 450.000 residents. The challenge was to attract retail to the budding, but still desolate, Pine Avenue. The city earmarked $2 million for a Key Tenant Loan Program to help recruit national retail- ers and lower their risk while Pine Avenue re- gained strength. Key retailers could use the fund to set up shop along Pine Avenue. and would only have to repay the money it they left within a certain minimum period. For example, a business that borrowed $400.000 over a 15-year term would owe nothing if it remained on Fine Avenue for at least 15 years, according to the California Re- development Association. Businesses were considered 'key' only if they would enhance the avenue's reputation, serving to lure other businesses. 'It was really what you could refer to as seed money because it was a risky area, the district had no reputation, they had a down- town area that had a reputation for crime; his. Hurst said- 'So we really had a lot of neg- ative images to start with' But EDS helped. prove that the down- town's daunting image quite belied its true character. "Plus' Ms. Hurst added, 'a lot of people in the Los Angeles basin hadn't been to Long Beach in 20 years ... and so every- body's idea of downtown Long Beach was what it used to be in the 1960s' Officials used the Key Tenant Loan Pro- gram. Long Beach's tourist and business at- tractions and the city`s redevelopment efforts to sell the area to retail, restaurants and en- tertainment. Z Gallerie, an eclectic home fur- nishings store owned by the risk -taking Joe Zeiden, was one of the first to arrive. fol- lowed by Crate & Barrel. Arnie Freeman, Crate & Barrel's real es- tate broker, is now a staunch EDS supporter. 'I was impressed with the effort that the city was making' Mr. Freeman said. '1 think that one of the things that was really good was that Long Beach was sophisticated enough to hire professional people to create a successful street' Now Limited Express, Bath & Body VSoTks and Starbucks are among the businesses that line a revitalized three -block — and growing — stretch. Local restaurants that limped through the dry times are thriving. Altogether. his. Hurst said, EDS has brought a total of about 200.000 square feet of retail tenants to the avenue. 'But it's still ongoing' Mr. Harrigan as- serted.'Retail regenerates itself and it's con- stant. That's why we have our ear to the ground, not only on Pine Avenue, but also other areas, because if we were to drop the ball. that area could go down quicklyr Although the avenue now bustles almost every day and night, officials hope business will continue to improve as more retail. restaurant and entertainment continues to enter the scene. Pine Square, a mixed -use development with a Ifrscreen AMC theater complex, about 160 residential units and 7.000 square feet of ground floor retail, helps ensure evening and weekend traffic. 'It probably took a good five years before it all sort of came together,' his. Kaiser said. 'h'sstill evolving quite a bit. One of the things we're focusing on is continuing; to add to that' The city has continued its contract with V EDi, and together they hope to expand the aw nue's rebounding vitality. A new aquarium is slated to open near the avenue next summer which, surrounded by about 400,000 square feet of additional re- tail and restaurants. could attract millions of tourists per year, his. Kaiser said. pine Av- enue, which runs to the harbor, will serie as the backbone connecting the areas. Since Long Beach, their first venture, his. Hurst and Mr. Harrigan have used retail to help revitalize downtowns in more than 20 cities, including Santa Ana and Pasadena, Calif. The hands-on principals study an area and determine its selling points, then use these points to attract retail, restaurant and entertainment. Acting as a bridge between the municipality and new businesses, their got I is to bring to a site a mix of retailers com- por ed of 25% national, 25% regional and 50% loci. 'That's what makes a district unique' Mr. Hai rigan said. "We don't want to put another ma' I up on a street front. We want to have the tocit flavor that probably was there before, and we want to expand upon that' One of the first things EDS does is &%ess the area and available property, and under- stand a municipality's needs. '1 mean, it doesn't de any good to call on Nordstrom if you don't have anywhere to put them' his. Hurst said. While under contract with a municipality, EDS will not work for a nearby, competing area, to avoid any conflicts of interest. It charges by the hour, and fees vary according to assignment. A recent seven -month con- tract in the bay area will reach about $62,000. his. Hurst said, a price that is paid back sev- eral times over from sales tax revenue and added jobs. This fee includes everything from program design and research to mar- keting the area to retailers. his. Hunt and Mr. Harrigan say their pres- ence oilers a silent promise to retailers who may otherwise hold off from settling in such emerging areas. "City governments have power,' his. Hurst said. 'If thcyie hired us, that means, also to a retailer, there's a game plan in mind. that they're not going to be the only ones sitting there for 10 years, that they are part of a big- ger, grander scheme' The scheme's success depends on every- one patiently working together toward revi- talization, sometimes taking risks and some- times taking losses. A revitalization plan can take years to show results. 'It's similar to making a movie' said hfr. Freeman of Crate & Barrel. 'It's a collabora- tion of a lot of folks, all pushing the same di- rection. That's how the movie gets made. This is no different.` The process takes so long in part because people get used to frequenting certain areas. and avoiding others. 'To change people's habit patterns takes a while,' hfr. Freeman said. 'There has to be some kind of carrot ... and that's what we're providing. We're providing some of those car- rots' Ironically, most retailers EDS brings to downtowns are those typically found in malls, but who are looking to escape restric- tions and common area maintenance charges, his. Hurst said. Main Street is, after all, retail's mighty an- cestor, according to shopping center history. And especially in such a temperate climate as California, why not spend time outdoors? 'You know, we've been mall-ized.' Mr. Freeman observed. "Put] revitalizing down- towns is just as important as keeping the mall business healthy" M Reprinted with permission by Shopaing Centers Today Magazine '..,3 P FNrE A``1'UE F'`'AIL PALE S :;> 1 •'+I.:K'•c,•.�.i.-r�,—a^i=" :-r.,'-..r.r+"•'m'c. "'t'" �r'fay'7.t`Yt..'^, �.r '.2Y,S'�,'`-' f - n++ft1'>/ {��•.�W.� .'4 •hY'"+"�u"�kf ��yva.�,^"�• 'r. �#}��! „�. 4 ,}. .rr. • �•„ry 3':.1!.° "Gi.q . ice,.-. �,.y "�h'rL'ft •!5. � �;`t ,.fi'�i��� �^:c�i 'sL !f'vi�� ��..iiL�N11�w:FV���M'.[.:n�A,W��.41�":'.a�Kirl:,����?: yL /L:�S2YCi4 cKln 7 °j �.>,< , U .•., t 'w ,�l r t'. „t;.f r� ,;f!i Ocean Bo lard! to5;'T` ircl St�reet,(t199 �,1 98 e edy ,! 7 a. v �.-..,; 4� ?{ r��Z Mt 'iF p ,. 'M'�..`�,�i ♦' i ''k wF; 4 ti 1 �13�160j 100 NO.. 4 . lr.It i 6 Sav�lt+'F� Ap ggy ATTACHMENT "A" CITY OF LONG BEACH COMPLETED TRANSACTIONS (Partial List) Tenant Z Gallerie Crate & Barrel Rock Bottom Brewery The Madison Restaurant Chicago For Ribs • Pasta Presto Eclypse Restaurant Limited Express Bath & Body Works Art of Hands Gallery Vons Expansion Starbucks (2) Tikal Restaurant Cha Cha Cha Restaurant King Crab Lounge Circuit City Bristol Farms Good Guys Games & Noble Ross Dress For Less Gold's Gym Orchard Supply Sub -Total: Office Space: Levi Strauss Regional Sales Office DeVry Institute Auto Club of Southern Califcmia Sub -Total: TOTAL: May 1999 Square Footage 20,000 13,000 10,000 17,000 3,000 3,000 6,200 5,800 4,500 3,000 80,000 2,500 5,000 U00 1,500 40,000 25,000 40,000 30,000 40,000 35,000 60,000 460,000 10,000 100,000 100.000 210,000 670,000 V ATTACHMENT "B" CITY OF LONG BEACH ACTNEIPROPOSED TRANSACTIONS (Partial List) Tenant Staples Trader Joe's (2 locations) Gelsons Barnes & Noble Cheesecake Factory Cost Plus IMAX Theater McCormick & Schmick Restaurant Wal-Mart Culinary Academy Sur La Table Restoration Hardware Urban Outfitters The Gap Old Navy Petco Hollywood Video Steinmart Ralph's Market Lucky's Market TOTAL: May 1999 Square Footage 25,000 15,000 30,000 25,000 10,000 20,000 35,000 9,000 130,000 30,000 6,500 5,000 10,000 8,000 25,000 10,000 6,500 38,000 60,000 60,000 558,000 ATTACHMENT "C" CITY OF PASADENA COMPLETED TRANSACTIONS "Old Pasadena" (Partial List) Tenant Saks Fifth Avenue - Main Street Crate & Barrel Home Store Pottery Barn Restoration Hardware Buca Di Beppo Jerry's Deli Earthsake Cheesecake Factory Sur La Table TOTAL: Square Footage 50,000 35,000 15,000 5,000 7,000 5,000 4,000 10,000 6,000 137,000 Note: Currently over 250,000 square feet of Active Prospects unlisted. CONFIDENTIAL ATTACHMENT "D" DOWNTOWN HUNTINGTON BEACH ACTNIEIPROPOSED TRANSACTIONS (Partial List) Prospective Tenant Square Footage Kincaids Restaurant 10,000 Laemmle Theater 25,000 T. S. Restaurants 10,000 Califomia Pizza Kitchen 5.000 Yujean Kang Restaurant 3,500 Pit Fire Pizza 3,500 Panda Express 2,000 Urban Outfitters 10,000 Z Gallerie 10,000 Timbuktu Travel Shop 5,000 Buca de Beppo 5,000 Earthsake 8,000 University Restaurant Group 8,000 Alegria Tapas Bar 3,000 Maui Beach Cafe 7,000 Sagebrush Cantina 10,000 Gordon Biersch 7,000 E & 0 Trading Co. 8,000 Jekyt & Hyde 10,000 Tsunami Sushi 4,000 Gelsons Market 25,000 Wild Oats 10,000 Champagne 3,500 Corner Bakery 3,500 Culinary Adventures 7,000 TOTAL: 204,000 May 1999 DEVELOPMENT t' RECEIVED NOV 011999 DEPARTMENT OF ECONOMIC DEVELOPMENT October 29, 1999 Mr. David Biggs, Director City Of Huntington Beach Dept. Of Economic Development 2000 Main. Street Huntington Beach, CA 92648 Re: Economic Development Systems Dear Mr. Biggs: I am %%Titing to express my support for the work Economic Development Systems has done in interesting retailers and restaurants in downto,,im Huntington Beach. As the developer of PIaza Almeria, I have the most space to fill. Through the design and quality of my building, I am seeking to attract new and interesting high quality tenants to Huntington Beach. EDS has made many referrals of this nature to our broker and to us. Additionally they were instrumental in ensuring the attendance of many outside brokers who represented the kinds of tenants we were targeting at our Broker Open House in August 1999. While we have not yet finalized any leases from these leads, I am certain that the efforts will pay big dividends to the City in the future. The City has invested millions of dollars in the bricks and mortar side of our Downtown, we now need to make some strategic investments in our marketing and tenant attraction efforts. Sincerely yours, JT DEVELOPMEN LLC Jo . Tillotson, Jr., Managing Member TEL 714898-8665 FAX: 7141895-6321 15272 Bolsa Chica Road. Huntington Bea&., CA 92649 �.04 � t t RE S T A U RA N T S UNtIA1ITED October 19,1999 Re: Economic Development Systems To Whom it may concern: I am Vice President of Development for Restaurants Unlimited, and I am responsible for finding new sites. We own and operate 30 upscale restaurants in thirteen states and are expanding at the rate of S restaurants per year with our Palomino Restaurant, Rotisseria, Bar and our Kincaid's Fish, Chop and Steak House concepts. In my work in Southern California I have become acquainted with Economic Development Systems. I find their insights to be valuable in evaluating our expansion opportunities. Their market overviews, demographic data, and referrals are particularly useful. Government agencies, the real estate community and project developers also hold Economic Development Systems in high regard. The firm understands the interrelationship between the community, the developer and the tenant, and can conceive vision and articulate practical solutions for all parties. More specifically, we are now considering the Huntington Beach for future expansion, a community we likely would have overlooked without the recommendation of Economic Development Systems. I am please to be able to recommend Economic Development Systems to you. Sincerely, Restaurants 1 Richard W. Sr. Vice IXIX N. \nrthhLe %X.ts %earth. \\Alingion 9-100,-904' �I 1 CINI CHM 1' ILC II.•.d V-1ar Nq%h• 0 R 43 U P October 26, 1999 To Whom It May Concern: I would like to take this opportunity to state CIM Group's support of the retail recruitment efforts of Economic Development Systems. In addition to introducing our firm to Huntington Beach, the consultants at EDS have introduced the proposed development of Blocks 1041105 to several prestigious tenants. Due to these introductions, we anticipate receiving proposals in the near future from some tenants and with others we are moving forward with discussions. We have found that Economic Development Systems provides a critical connection among retail developers, retail brokers, tenants and city govemment in facilitating the creation of successful downtown street environments. CIM Group highly recommends the continued involvement of EDS In the revitalization of Downtown Huntington Beach. Should you have questions regarding our support, please feel free to contact me at (310) 966-1700. Sincerely, CIM Group, LLC Z�6& Avraham Shemesh Member KYXAi Wil.liin• 11h+1., Lew Anple+. l:Ll;&,ntia IM21 T I 1.11101 lf� I Nx► ra% (3l u11x.r.l :1l l URBAN STREET ADVISORS October 25, 1999 City of Huntington Beach Economic Development/Redevelopment Agency Huntington Beach, CA To Whom It May Concern: On behalf of Urban Street Advisors (USA), which is a consulting/transaction services company that represents both tenants and landlords within the urban districts in southern California, I would like to take this opportunity to acknowledge the benefits and recommend renewal of the contract of Economic Development Systems (EDS). Pat Hurst and her group have done a great job in packaging and marketing your city. We have found that the cities and districts that have Economic Development Systems programs in place make it much easier to educate and sell a tenant on that district and location. Whether USA is representing a Tenant or a Retailer, EDS has been very helpful. We only work in the urban retail districts and find we can do multiple transactions based on their project knowledge and information. They are out there in the marketplace for your community, along with our marketing programs to target and contact the desirable retailers and restaurants. Packaging a city or district that is in transition needs extensive information and packaging in order to get interest from retailers and restaurants. The majority of quality tenants have typically relied on a single ownership of a mall to educate and control their property. As the trend away from malls continues to spill onto the streets, EDS has been very helpful in both the packaging and marketing efforts to bring the attention of the district to the retailers. It is critical that the district has the proper focus and marketing to fulfill the required knowledge of each property. I am confident that the continued Retail Recruitment Program by Pat Hurst will provide the necessary information and efforts to make downtown Huntington Beach the besot can be. Please call me if you have any questions or if I can provide any additional information. Sincerely, Linda Crowley, CLS President 4482 SARRANCA PARKWAY, SulTE 180-161. IRVINE, CALIFCRWA 92604 9 TEL (949) 733-3560 - FAx (949) 653-1185 V V MAIN & MAIN INC BROKERAGE DEVELOPMENT MANAGEMENT October 27,1999 Via U.S. Mail Economic Development Systems Pat Hurst 436 Calk Mayor Redondo Beach, CA 90277 RE: Huntington Beach To Whom it May Concern: I ►s= to take a moment to express my appreciation for Economic Development endearing assistance to me. My work with restaurants such as Rock Bottom Restaurants, Denver Chop House, Macaroni Grill, Comer Bakery and Chili's, throughout the state, but specifically is Long Beach, Pasadena, Culver City, and Westwood, has resulted in many successful dealings with Pat and her firm I had not seriously considered Downtown Huntington Beach as a viable location for my clients until Pat introduced me to the marketplace while discussing the needs of one of my clients ftt another city. Economic Development Systems has been extremely helpful in providing the type of infarmation required by my clients to assess whether they will be able to develop restaurants in the trade area or not. I have worked with Pat and her staff in several markets and believe the strength of Economic Development Systems' program results from their work in other markets throughout Southern California as well as their exposure to national, regional, and local prospects. I fecl this allows them to be in contact with a variety of tenants and brokers that may not have considered Huntington Beach It is apparent to me that redevelopment arms require risk -taking, patience and sometimes a leap of faith I am more likely to pursue opportunities in a redevelopment arc represented by EDS because based on my experience, I believe their involvement is the key to a successful district. I would hesitate to recommend a long-term tease to my clients when there is not a long-term game plan for revitalization. i sincxsely Lope Qat 1c Gty.s: Ilu:.ti::d. ;.-, Be--.':.i:;' .o n .h rconc ,-c Development Systems. Please call me if 1 can be of further assistance. Sincerely, KKlcc 410t NEWPORT PLACE • SUITE 660 • NEW?ORT BEACH • CALIFORNIA • 92660 • TEL • 949. 416. 2100 • FAX • 949. 416. 2117 METROPOLITAN PACIFIC 1WEN IAIE N I' REAL F% -\ I'F. BROKERS October 25, 1999 Pat S. Hurst Principal Economic Development Systems 436 Calle Mayor, Second Floor Redondo Beach, CA 90277 Re; Economic Development Systems Huntington Beach Retail Recnritment Program I would like to take this opportunity to thank Economic Development Systems for sustaining a working relationship with Metropolitan Pacific investment Real Estate Brokers and Metropolitan Pacific Capital. For the past five years, Economic Development Systems has enabled our brokerage and acquisition company to locate and secure trey properties for leasehold and acquisition in key marketplaces such as Pasadena, Long Beach, Westwood and most recently Huntington Beach. Their personal knowledge of real estate transactions and multiple marketplaces is unrivaled to any firm who operates in a similar fashion today. Economic Development Systems has helped Metropolitan Pacific Investment Real Estate Brokers bring prime properties to our client base for lease consideration which has enabled them to gain a competitive edge over other retailers during the negotiation process, which in turn has helped boost our image as a brokerage house by providing key information on a timely basis. Economic Development Systems has helped Metropolitan Pacific Capital identify key properties for acquisitions prior to the competition, thus alio%ring us to place our capital and that of our clients in a timely manner. Overall, Economic Development Systems has always provided us with accurate information and is always available to answer questions and help conclude our transactions. Economic Development Systems various city contracts have enabled us to place our capital in more than one area, thus providing a windfall for all cities. We look forward to working with encouraged that their service v Sincerely, Leslie no evelopment Systems in Huntington Beach and remain there for us today and in the future. Itm) WIIS111111: 11OUL_EVARD. SIATE Mx$. SANTA MONICA. CALIFORNIA 9"301 TI:LL-NION i tarn, ;03.73(ml FAX 011h s1�1-nl�a Sent oy : SCHE!. AN ERE .,EPY 1 970 462 6139; ICIAB7 9 12:09PIA;JetEx dE99;aaae Iii e OHEMIAN CIKLI a�tREIVERIES triervnart OrHCt 116 6,41w+.0i su.wl • rnrl rabona :4 adr. 90514 USA 17C ail-3917 fa+ 1,1011. 91J7 wr�w Yur•anulnlM •r'�rw,.ln S1 To. Pitt Hurst Pal. t just wanted to thank you loi all the yard work and timely infcrrnntlon that you have given Me over time on the potential of us ccing one of our restaurant concepts to Huntington Basch. I rtavo_ always found your group to be highly efficient and Pnowledgeabte on all of the potential real estate sites and all the need A dernagraphlc data 11 has always been a preas;,re working with. you going back to our successful business efforts in Long Beach wren f was the C'tlef Development officer with Rack Bottom Restaurants. That remains a very strong restaurant in sales. I get many different proposals from many different sources and it is always difficult to determine which ones out woriti my tme Fnd effort. Because of my faith and trust in you and Your eompany,wtten something from you or your group comes across my rlesk;l always consider It worth the time and effort. Once agam.1 appreciate all you have done to educate anti get out interest in Huntington Beach and I look forward to movina ahead in the future Si11CCT'�hy, r r Bill Edmiston Execut ve Vile President 8 Chief Development Officer Echem:an l3rewertes,lnt'L & Sheng In'.1 { 1 41�� 0 . �.0r W-41 a R a U P October 26, 1999 To Whom It May Concern: I would like to take this opportunity to state CINI Group's support of the retail recruitment efforts of Economic Development Systems. In addition to introducing our firm to Huntington Beach, the consultants at EDS have Introduced the proposed development of Blocks 1041105 to several prestigious tenants. Due to these introductions. we anticipate receiving proposals in the -near future from some tenants and with others we are moving forward with discussions. We have found that Economic Development Systems provides a critical connection among retail developers, retail brokers, tenants and city govemment in facilitating the creation of successful downtown street environments. C1M Group highly recommends the continued involvement of EDS in the revitalization of Downtown Huntington Beach. Should you have questions regarding our support. please Seel free to contact me at (310) 966-1700. Sincerely, CIM Group, LLC Avraham Shemesh Member WIN) %U141in• Ilhd.. St.% "IM1 1JP ANIJ!4 'r . Calif .cilia 1011121 TA 13Ilia 1lr-'o-l;[111 F;I% 131111' N'(� 1 111 ff� F10KIIIII October 18,1999 TO WIIOM IT MAY CONCMV. �N _ I would [Ice to take this opportunity to express my pleasure in working with Economic Development Systems to further develop Downtown Huntington Beach shopping, dining and entertainment district. They have actively coordinated the district's recruitment and lensing efforts calling upon both local and national tenants. 'their creativity in working with difficult situations as well as their commitment to creating a healthy, vibrant downtown is truly evident. My properties in the district present unique challenges; yet, Judy and Pat continue to search for a "win -win" solution. They have provided vital market information and have always been accessible to me. Through their re titment and marketing efforts I am confidant that Huntington Beach is now being considered by quality national and regional tenants. I look forward to further working with Economic Development Systems and believe they are playing a key role that the district cannot do without. Please contact me if I can to of further assistance. ncerely, Ro ert J. Ko 200 MAIN ST. `206 (2 H( rMNGTON BEACH, CA 92648 Q (714) 960.5495 FAX (714) 969.9284 tZONA PARTNERS 4 RETAIL INVESTMENT GROUP A GNESION OF MRS PARTNERS, LLC October 14, 1999 To Whom It May Concern: I am writing to inform you how helpful your consultants, Economic Development Systems, have been to our company. Our firm acquired Pierside Pavilion earlier this year and Economic Development Systems has played a valuable role in providing us with important market information and ideas to improve the marketability of the property. They have assisted in developing project configuration concepts that are designed to attract high quality tenants that would compliment the overall tenant mix of the downtown district. They also put us in touch with highly qualified, well -respected leasing professionals. Economic Development Systems has actively marketed both Downtown Huntington Beach and Picrside Pavilion to local, regional and national tenants. Their efforts have generated interest from tenants that might not have previously considered the area. They are creative and energetic and truly committed to enhancing the district. I hope we have the opportunity to continue to work with them to realize the goal of a successful and dynamic downtown. Please do not hesitate to call me if I can be of further assistance. Good Things Are Ahead! :�&Gj U\-C) Bruce Shapiro` Managing Member BISlslr 3200 N. CENTRAL AVENUE 0 SUITE 2450 9 PHOENIX, ARIZONA 85012 • 602I 266-6868 • FAx 6021266-6116 FFOM PHONE NO. : 2r-0 Oct. 13 1??i 4?:-3?Ft! P� RICHARD A. HARLOW AND ASSOCIATES October 14, 1999 Economic Development Systems 436 Calle Mayor, Second Floor Redondo Beach, CA 90277 To whom it may concern. I want to take this opportunity to express to you how pleased I am that your company is involved with the City/Redevelopment Agency in assisting to promote and help to locate businesses into Downtown Huntington Beach. Judy Miller has contacted me on a regular basis to obtain information and exchange ideas on Possible business opportunities and to help update your inventory on property in the area. I look forward to your continued viforts in the area. Sincerely, Richard A. Harlow WE November 1, 1999 Ms. Judy Miller Economic Development Systems 436 Calle Mayor, 2"d Floor Redondo Beach, CA 90277 Dear Judy: We at Commercial West Brokerage. Inc. are involved in a very unique niche of commercial real estate. We specialize in the site acquisition of quick service restaurants for large corporations. In our business we rely solely on ourselves to be aware of every possible opportunity for our restaurant clients. There are no services which provide this type of information. The assistance that the Economic Development Systems has been able to provide us with is invaluable. The Economic Development Systems keeps us aware of every opportunity with the sub -market they contract in. It is nearly impossible to keep track of all real estate opportunities in such a large metropolis. The Economic Development Systems has helped provide focused data to me and my clients. We have made successful transactions within the jurisdiction of the Economic Development Systems, including Culver City and Long Beach. We hope we can continue to rely on the Economic Development Systems for accurate up to date commercial real estate information. Best Regards, Commercial West Brokerage, Inc. a'o 11Z14'f'tA Chris Fredrick elchr **Her Judy letter 11-1-99 1451 Quail Street ■ Suite 102 a Newport Beach, CA ■ 92660 ■ (949) 756-7300 a Fow (QdO) 7SQ_A71A Sent By. LAEMMLE THEATRES; 3104784452; Y,aemmle use; %AwIA PAONICA L-uuttwAPL) W 9ST LOS AI+G13 r.. I A yunti Sat•y73.104t 11 eh - 4VA - 4 4 3 2 VAX A W V: LA%MMI► .rnm N:1► ember 9, 19Y9 Pa t-S. Horst. Itrincipat Rmnnmic I);vclopmcm Sv%tem% 436 Callc Mayur RcMundt► Reach CA 90277 I)C:Jr Pat, Nov-9.99 5:51Pt.1; Paae 1; 1 (LILORALPO PASADr1►A I:RAN!» 4-PLtx UOA'NTOWK LA. MOWICA 4-rIt)L %A.NTA MQX3CA Ut!S1C MAI1 t I<tV LKLY MILtS rtAYllotst - PMtAUr'vA xo,jAL Wr37 tas AW.rM SL'wstT; Wl.%r HOLLYWOOD TOWN CENTER 1 LN6.1-NO It i-. with great enthuseasm and support Cut your retail ftVit:1117364tl progrruns that l write thi; letter of recommendation. As you are aware. Laemmle Theatres is a Leas Atigelc% based theater operattor nffering a high quality movic experience with multiplc units across the hasin. Our Focus is always on providing crealive venues for .lining art and imictl ndent rims in strategically iocated markets. In our migoing se.rrch for untappcd markets for new location-;, we contintic to depend on the inromiation provided by Economic DmIopment System~ for not only infornt:ttion assistanec, but in the critical time •x:tving ovcrvicws of the market places you represent. l believe your skills and qualitic:atiuns in turning :around trader -performing downtown di%trict% is needed in imst up-and-coming street front districts. Our risk Icird in moving forward with trtns.tctions in areas such ai Pasadena. Long Beach or Huntington Belch is greatty reduced when RDS is involved. The experience we cuter our parrons begins. Wore they enter the thenim Kccf- up the good wo& Sincc rely, 6 3: a baum rec. ►r ur Rem vmate & Olirrations Economic Development Systems 436 Calle mayor Second Floor ♦ Redondo Beach. California 902779 Tel.: (310) 375-5021 • Fax: (310) 375.8641 CITY / AGENCY REFERENCES City of Long Beach Gerald R. Miller Deputy City Manager City of Long Beach 333 West Ocean Boulevard, 14th Floor Long Beach, California 90802 (562) 570-6916 Amy Bodek Redevelopment Officer City of Long Beach 333 West Ocean Boulevard, 3rd Floor Long Beach, California 90802 (562) 570-6037 Barbara Kaiser Redevelopment Manager City of Long Beach 333 West Ocean Boulevard, 3rd Floor Long Beach, California 90802 (562) 570-6340 City of San Jose Susan Shick Executive Director The Redevelopment Agency of the City of San Jose 50 West San Fernando Street, Suite 1100 San Jose, California 95113 (408) 277-5195 Francine Principe Senior Development Officer The Redevelopment Agency of the City of San Jose 50 West San Fernando Street, Suite 900 San Jose, California 95113 (408) 277-4744 City of Pasadena Marsha V. Rood, AICP Development Administrator Housing and Development Department City of Pasadena 100 North Garfield Avenue Pasadena, California 91109-7215 (626) 744-4653 Erlinda Romo Business District Coordinator Housing and Development Department City of Pasadena 100 North Garfield Avenue Pasadena, California 91109-7215 (626) 7444660 City of Culver City Mark H. Winogrond Chief Administrative Officer City of Culver City 9770 Culver Boulevard, 3rd Floor Culver City, California 90232-0507 (310) 253-6001 Miriam Mack Redevelopment Administrator City of Culver City 9770 Culver Boulevard, 3rd Floor Culver City, California 90232-0507 (310) 253-5762 EXHIBIT #3 r'.c J.n o m I r � •�• r.'I � 1 1 I r. 2909 Vista Del Mar Third Floor Rancho Palos Verdes, California 90275 310.546.4124 FAx:310.546.3914 July 31,1997 Ms. Carol Schillne CB Commercial 2400 East Katella Ave., 7th Floor (C(011 Anaheim, California 92806-5938 Re: Downtown/Pier Area Revitalization The City of Huntington Beach Dear Ms. Schillne: I would like to take this opportunity to introduce to you and your entertainment, restaurant and "traditional" retail clients marketing materials developed specifically for the new Downtown Huntington Beach. Economic Development Systems ("EDS"), is under contract with the Huntington Beach Redevelopment Agency to design and implement a Revitalization and Recruitment Program for this Downtown streetfront district. EDS' compensation is on a fee basis and we do not participate in lease or sale commissions to users. Similar successful entertainment and restaurant Recruitment Programs have been instituted by EDS, and are currently being administered by EDS, on Pine Avenue in Long Beach, Colorado Boulevard in Pasadena and Westwood Village on the Westside of Los Angeles. These districts -are three of the top entertainment/ dining/shopping districts in Southern California. Our Revitalization and Recruitment Services are now in 22 California cities and BIDs. In Downtown Huntington Beach, EDS is currently recruiting several varied entertainment, dining and "traditional" retailers to the area. We suggest that if your national, regional and/or "local" Orange County streetfront clients are looking for a district with very competitive rents, and an upside reflecting the very strong demographics of Orange County, that you submit your requirements to EDS and we will be glad to detail to you present and/or future space availability's. To familiarize you further with the new Downtown Huntington Beach, I have outlined the following: 0-9 Economic Development Systems • Downtown Huntington Beach is located on Pacific Coast Highway, just east of foot of the Huntington Beach Pier, five miles north of Newport Beach, 10 miles south of Long Beach and 15 miles west of Anaheim. • The 5 mile radius, beachfront, demographic ring, shows a population of over 251,000; 51.3% of this population between the ages of 25 and 54; 69.9% white collar employment; an average household income of $67,306, with 32.3% earning over $75,000. • Huntington Beach's, 8 1/2 miles of white, sandy beaches attract over 11.000,000 visitors annually. That's 3,000,000 more visitors than visited all the islands of Hawaii. The enclosed package of attachments include: A 1, 3 and 5-mile radius map and demographic comparison of Downtown Huntington Beach to the aforementioned top entertainment/ dining/ shopping districts of the Weshvood Village section of Los Angeles, Old Pasadena and Third Street Promenade in Santa Monica; • Urban Decision Systems 3, 5 and 10 mile "Market Profile" demographic analyses, including 1997 population and income figures, and; • An artists color rendering of the redesigned Pier Plaza, including new amphitheater, new Duke's restaurant building and new parking areas. I will be following up this letter with a telephone call to you. If you have immediate interest regarding the opportunity or information contained herein, I will be glad to meet with you at your convenience to discuss this opportunity. Please feel free to call me at (310) 5464124. Thank you for your time and consideration. Sincerely, Economic Development Systems Harrigan Principal Attachments RETAIL VACANCY ROSTER "Huntington Beach - Downtown Core" Property for Sale or Lease BUILDING SIZE LEASE RATE PER BUILDING NAME # OF FLOORS LEASING AVAILABLE S.F. AND ADDRESS YEAR AGENT and/or BUILT/REHAB SALE PRICE "Duke's Restaurant, 20,400 s.f., includes Lease rate TBD Lower Level 2,400 s.f. outside 7,700 s.f., Inside; At foot of H.B. Pier, 2 Floors 2,400 s.f., Outside: west of P.C.H. Under Construction 10,000 s.f. Total Former First 32,000 s.f. Carol Schillne $2.00 p.s.f., NNN Intei state Bank space 2 Floors CB Commercial 3,916 s.f., First floor, 200 Main Street, S/E 1990 714-939-2209 Sublease Comer 49- OIive Ave. Main. Promenade 32,000 s.f. Robert Koury $2.50 p.s.f., NNN 200 Main Street 2 FIoors 714-960-5495 5,445 s.f., can divide to 1990 3,916 s.f. and 1,529 s.f. Pierside Pavilion 78,165 s.f. Julie Gnaot $1.60 - $2.34 p.s.f., NNN 300 Pacific Coast Hwy. 4 Floors Argus Commercial $4.68 - $5.82 p.s.f., FSG 1989 714-536-3204 2,400 s.f. can divide to 950 s.f. Oceanview 47,000 s.f. Ahmad Abdelmuti 100% Leased Promenade 4 Floors 714-536-7861 $1.40 p.s.f., NNN 101 Main Street 1993 Source: Economic Development Systems The City cf Huntington (leach does not warrant the accuracy of this data, which is intended as a general guide only. N = Net NN = Triple Net MG = Modified Gross FSG = Full Service Gross j[h\hb\downtown core\ reud.vK roger CURRENT AS OF MAY,1997 v RETAIL. VACANCY ROSTER "Huntington Beach Downtown Core" Property for Sale or Lease (Page 2) BUILDING SIZE LEASE RATE PER BUILDING NAME It OF FLOORS LEASING AVAILABLE S.F. AND ADDRESS YEAR AGENT and/or BUILT/REHAB SALE PRICE 501 Main Street 10,353 s.f. Denise Mir $1.80 P.O., NNN Building 1 Floor LF 'Management 1400 s.f. 501 Main Street 1990 310-451-5569 211 Alain Street 3450 s.f. Richard Harlow 100% Leased Building 2 Floors 714-960-2147 $2.25 p.s.f., MG 211 Main Street 1992 126 Main Street 10,343 s.f. Adel Zeidan Lease Rate TBD Building 2 Floors 714-960-1153 First Floor : 5350 s.f. 126 Main Street To Be Developed Second Floor : 4993 s.f. (Includes Patios) Plaza Almeria 40,000 s.f. Joe Ehret $2.50 p.s.f. 301 Main Street 2 Floors J.T. Development 1,000 s.f. to 13,500 s.f., L To Be Developed 714.897--7223 I Now Leasing I Source: Leasing Agents and Economic Development Systems The C,ly of Huntington Beach does not warrant the accuracy of this data, which is intended as a general guide only. N = Net NNN -Triple Net KIC = Modified Gross FSG = Full Service cross CURRENT AS OF MAY,1997 i� M Ccanomic Development Systems CITY OF HUNTINGTON BEACH DOWNTOWN CORE DISTRICT RETAIL VOIDS AND UNDER -REPRESENTATIONS BY USE CATEGORY (NOT NECESSARILY RECOMMENDED INFILL USERS) Type Number of Active Type Number of Active Businesses Businesses -Nat+Reg+Local- Home Improvement 0 Bridal/Formal Wear 0 Men's/Children's Hair 0 Cards/Gifts 0 Traditional Bakery 0 Bed/Bath 0 Specialty Foods 0 Floor Coverings 0 Video/Recorded Music 0 Cigar Stores/Humidors 0 Appliances 0 Hardware 0 Paper Goods/Party 0 Drug Stores 0 Home Furnishings 0 Books/Magazines 0 Fabrics 0 Wall Coverings 0 Office Furniture 0 Sporting Goods 0 Jazz & Blues Clubs 0 Pottery 0 Optical/Sunglasses 0 Toys 0 Electronics 0 Photo Equipment 0 Men's Apparel 0 Crafts/Hobbies 0 Office Equipment 0 Children's Apparel 0 Shoe Stores 0 Glassware/China 0 Shoe Repair 0 Kitchenware/Cutlery 0 Auto Parts 0 Camera/photo finishing 0 Gyms & Nutrition 1+1+0 ComputerlSoftware 0 Family Apparel 0+1+5 Photo Studio 0 Florists/Nursery 0+0+1 Pet StorelAquarium 0 Art Gallery/Framing 0+0+1 Leather/Luggage 0 Restaurants -Liquor 0+0+11 Women's Apparel 0+1+8 Total Voids by Use Category: 40 Source: Economic Development Systems Huntington Beach Redevelopment Agency Total Under -Representations: 6 Eco omic Development Systems CITY OF HUNTINGTON BEACH --DOWNTOWN CORE -- EXISTING RETAIL USES Tempe Number of Active Businesses -Nat+Reg+Local- Business Services 1+1+3 Restaurants — Liquor 0+0+11 Fast Food 3+0+7 Jewelry Stores 0+0+3 Personal Service 0+0+8 Surf/Sports Shops 0+1+9 Banks 0+1+0 Coffee Shops 1+0+5 Bagels/Bakeries 1+0+1 Repair Shops 0+0+1 ArVGift Stores 0+0+1 Restaurants -- B & W 0+4+10 Newspapers/Mags 0+0+1 Florists 0+0+1 Total Types of Uses: 27 ime Cinema Family Apparel Gov't/Social Bicycles & Skates Gyms & Nutrition Candy Cleaners & Laundry Ice Cream & Juices Hair & Nail Salons Health Services Auto Sales & Repair Markets & Liquor Women's Apparel Number of Active Businesses -Nat+Reg+Local- 0+1+0 0+1+5 5 0+0+3 1+1+0 0+1+1 0+0+3 2+1+1 0+0+$ 0+0+2 0+0+4 0+0+3 0+1+8 Total Active Businesses: 133+ Source: Economic Development Systems Huntington Beach Redevelopment Agency Economic Development Systems 29W Vislo Del Mar, Third Floor a Rancho Polos Verdes, Coldomia 90275 • Tel.: 310.546.4124 • Fox: 310.546.3914 Downtown Huntington Beach Demographic Comparison Third Street Huntington Westwood Old Promenade, Beach* Village* Pasadena* Santa Monica* Population: 251,014 534,899 506,057 366,203 Households: 93,204 251,183 173,443 169,890 Average HH Income: $69,542 $79,534 $61,778 $72,937 Medan HH Income: $55,256 $44,039 $45,581 $43,081 Percent HH over $ 50,000: 55.1 % 43.3% 47.0% 43.0% over $75,000: 32.3% 20.0% 25.3% 25.4% Education: College 1 - 4+ Years: 67.9% 70.1 % 65.1 % 72.0% Percent of Population 2544: 37.4% 38.2% 34.0% 40.0% Median Age: 35.0 35.6 34.0 35.9 *Centel- of 5.0 mile demographic ring - Huntington Beach: Main St. and Pacific Coast Highway Westwood Village: Wilshire and Westwood Boulevards Pasadena: Fair Oaks and Colorado Boulevards Santa Monica: Colorado Boulevard and 3rd Street Promenade Source: Urban Decision Systems; Information Decision Systems; 1997 Estimates t � X/m" RTIFICATL-OF INSURANCE-COWMAGE OPTION II SMALL CONSULTANTS PROFESSIONAL LIABILITY PROGRAM PRODUCER: 0,14y aleXArA e /C PUBLIC ENTITY (ADDITIONAL INSURED) AON Risk Servi o4or� `� n i-California Insurance Services 6_/, /0 /o Big Independent Cities Excess Pool One Market, Spear Tower, Suite 100 City of Huntington Beath San Francisco, CA.94105 (415) 543-9360 NAMED INSURED (EVENT HOLDER): EVENT INFORMATION: Eeonsmic Development System Type: SCOPE 436 Calle Mayor Class:yi Redondo Beach, CA 90277 Date(s): 10/1/99 - 9/30/2000 Project Description: Tenant recruitment for downtown area Nameof Project: Downtown/Pier area cevita Premium: $1.622.00 Additional Fees and Taxes $54. 34 & 33. 66 This is to certify that the policies of insurance listed below have been issued to the insured named above for the policy period indicated. Notwithstanding any requirements, terms or conditions of any contractor other document with respect to which this certificate may be issued or may pertain, the insurance afforded by the policies described herein is subject to all the terms, exclusions and conditions of such policies. 0PRO11-ED AS TO 1 ORM a INSURANCE CARRIER: Evanston Insurance Company G.11L E11TTO , City Attorney By:. DCity Attorney. MASTER POLICY NUMBER: TBD t a4rIONW: MASTER POLICY DATFS: EFFECTIVE- ULY 1 19�) 11)l. 2000 12-01 a.m. Pacific Standard Time 12:01 a.m. Pacific Standard Time POFFSSIONAL LIABILITY General Aggregate Liability $2,000,000 Per each project or consulting contract Each Occurrence Limit $1,000,000 Deductible: Per Claim $ 500 Coverage is primary and not contributing with any insurance maintained by an additional insured. The limits of insurance apply separately to each event insured by this policy as if a separate policy of insurance has been issued for that event. It is understood and agreed that the Certificate Holder is an Additional Insured, but only as respects its liability arising out of the activities of the Named Insured. OTHER ADDITIONAL INSURED OTHER ADDITIONAL INSURED CANCELLATION: Should the above described policy b6anceled bef the expiration d thereof, the issuing company will mail 30 days written notice to L'"itifieAtpohol itional ' ds listed. 1����� ••ZED. . JOIN I1 October 1, 1999 06MM -33- v 1LWAFFUCAMNFAMACE Aon Risk Services Azation DOWNTOWN HUNTINGTON BEACH Insurance Information .wr+r:.••t�!+..�W•�+.r..._�r-""''.y�...:LI LF! �• U G/r/JT+I�� K• GNRUER 6 ASSOCIATES INC �F%/j/a. .lo P O BOX 3669 pV, ! S t�NHAT:s.N BEACH cH CA, s � 6M6 ) Imewwo JIM HARRIGAN ANM PAT HURST ECONnMYC DEVELOPMENT SYSTEMS 436 r-kT.LE MAYOR PX=NDO BEACH, CA 90277-6146 go THIS CMRTIRCATE IS ISSUED AS A MATTER OF INFORAAATK" ONLY AND CONFERS IrO wcmTs uPoH THII ck"FTCATZ: HOLCEFL 111tS CfFMFICATj 00" Ndr AWNC. EMNO OR ALTEA THE C VERAnE AFFORnED BY THE PIDUCfr3 BELOW. A FIRST FINANCIAL INS. CO. I CJ1/ANr 1 8 ��.��.—•r OCrvAw. c ..�. S+ti ei to Cf�iTtr Y TT1 rtT Tf+F ►ouata Af MaSt1gAHCE L3STEC BELOW ► ull a; W iblUEO TO THE iNsslaEO MrW E0 AAT?AE FOR- THE POLICY PEMO wC:CATED. TICTWTTNSTA)4DlNa AM' PEC"EMEMr. TTTAMT OIICONOIn ON OFANYCONTR&CT 011 OTHER OOCU"Nr YnTM PESPeCT TO WMch l"8 CEATISCAT! MAY aA WILUeO OR IAAY I'MYAw. TIE INWAWCE A"envcn ty THc PM=ES 0aCpwm I+ vof4 is $uL*CT to ALA THt TEWL CtCLUMNS ANo CONOTTIC"ri OF WCH PMC113 L1wm gw+ wN MAY mAyr eum REpt = Eti'!NO ewu& LI�'11I• Tr►ECobou a" FOu wwwam pew �w.TPlr� (%UA VM wo" �(M�YI�L'1' 1 A' *MEAAL LIAMUW C&A ML AG PAMATr - I 2,000.0 x [r �s.AraAL oerE L uAaam A+eaouc:rs • 6~ Aw I INCLUD CLA&SMAW LXJOOMIA F0148-0 S00234 06/04/99 06/04/00 wlcaNALaAovwls�+ . 2 000 0 To A a coin+.. wn war EAD. a�+r+E++c� t 1 0 0 0 0 pAeQAv& =TAfreA- 00 0 Au.e+.a.a.:twrir+ i CfOreNCO CNnts LM.T � AI,L n..A•a iTos GklI. I A �:: �3':, , CI tY At me p �OLYrIlUi�► i = sLs�WLEoAUTcxi I`eP til City Atto , ey 1aAE014fTCs r ry.A1hI W"AYT M i �js f '�� .� PPCP"lYCAwrCE I6 O^'^AM��AR UAa4JTY I AUTO 04LV . U ACC*P" a &IN Aura ' OT►EA Tww Auto OHLT �+ Aer1+e6A1T I fte AauW4K lACt�OCCJ�Mi�1R • ..* s A ++ Imo ACC PMATt Is ow+.ea T "w.MR LA •o+wr a `t.WMi7hCO�FULI�A�A L1AIanT .• VAn;=W UUTS LVx n&CMT I+ prE1r• 1 roe pwv" OW ■a. rRf . Cfiak" • ICLCTUw 046"1 • TACK "+Ram t 1 1 � • Of-1CAVhO+�OrO�TMT�O�IAOGA I[[f�l CERTIFICATE HOLDER IS NAMED AS AN ADDZTIONAL INSURED. #10 DAYS NOTICE OF CANCELLATION FOR NON PAYMENT OF PREMIUM. CITY OF HVR'TINGToN BEACH AND THE ii=INGTON SEACii REDEVELOPMENT AGCY ITS AGENTS . OFFICERS. & EMPLOYEES 2000 MAIN STREET HUNTINGTON, CA 92C48 32—Dare ww"= "wx.w10 TM CSRfV"w MOLOCl1 U.-M w "w'wr. 107C STATE._ P.O. BOX 420807,-SAN FRANCISCO, CA 94142-0807 COMPENSATION N S U R AN C I - FUND CERTIFICATE OF WORKERS`. COMPENSATION, INSURANCE JANUARY 13 1999 1A154,): :POLICY NUMBER'.':_. ; CERTIFICATE. EXPIRESr .' 1 r CITY .OF HUNTINGTON BEACH 0059 BUILDING g �SAFI✓TY DEF'"I -.PO BOX 190 'HUNTINGTON BEACH CA 92648 L This is to"ceftify that we have issued"" d`Workers' ComperiSation insurance policy in a form approved bV the California 'Insurance Commissioner to the employer named below for the pol ic y period indicated. , This policy is not subject to cancellation by the Fund except upon tdO days' advance written notice to the employer. 30 "'We will also give you X�N days' advance notice should this policy be cancelled prior to its normal expiration. " This certificate of insurance is not an insurance policy and does not amend, extend or alter the coverage afforded by the . policies listed herein. Notwithstanding any requirement, term, or condition of any contract or other document with respect to which this certificate of insurance may. be issued or may pertain, .the insurance afforded by the policies described herein is subject to all the terms, exclusions and conditions of such policies. AUTHORIZED REPRESENTATIVE PRESIDENT EMPLOYER'S LIABILITY LIMIT INCLUDING DEFENSE COSTS: $1T000,000 PER OCCURRENCE. ENDORSEMENT #2065 ENTITLED CERTIFICATE HOLDERS' NOTICE EFFECTIVE 01/13/99 IS ATTACHED TO AND FORMS A PART OF THIS POLICY. 7, Y ., . 'R • r, `. TioV',r TO City Fai3M .a _ PD AS Attornej, . GAxL IIUp1� ' it,..,kttorney BY per_ Jy THIS DOCUMENT HAS A BLUE PATTERNED BACKGROUND sCIF 10262 (REV. 3-s5) V Transmittal from David C. Biggs Dated Noy.17,1999 RE: EDS Contract ATTACHMENT #3 09 CITY OF HUNTINGTON BEACH InterOffice Communication Economic Development Department °�a TO: Honorable Mayor and City Council Members VIA: Ray Silver, City Administrator FROM- David C. Biggs, Director of Economic Development DATE: November 17,1999 SUBJECT: Proposed Agreement with Economic Development Systems The purpose of this communication is to transmit recently received supplemental material regarding this item as requested by the Council when it was continued from October b`s to November It". This information includes: 1. A Summary Letter from EDS (Exhibit 1); 2. Letters of support/recommendation. from Downtown Property Owners and Retailers/Brokers (Exhibit 2); 3. Status Reports from our files, which may help, explain more of the nature of the work they have performed for the City over the past 2 years (Exhibit 3). When we first retained EDS, the timing was in anticipation of the completion of Plaza Almeria. Although that project was delayed considerably, the time with EDS has been put to good use. To begin their efforts, EDS studied the Huntington Beach market and developed a preliminary list of tenant prospects. Then they started developing collateral material about the downtown, including demographics and a vacancy roster showing available space. They worked with staff to help us improve our marketing material, leading to a map of the downtown and more colorful flyers. They mailed introductory letters to local brokers and tenants to increase interest. At the annual conference of the International Council for Shopping Centers, they helped us with our booth each of the past 2 years, especially by arranging meetings with brokers and tenants. As Plaza Almeria came closer to completion, they helped us conduct our first retail broker open house on August 12, 1999. For this event, EDS mailed relevant marketing information about the project to over 280 prospects, and brought together approximately 30 retail brokers and tenants for a tour of the site. In addition, EDS has been responsible for bring more than two dozen prospective tenants or brokers representing these tenants to the Downtown for individual briefings and a tour with Economic development staff, and continue to do so on a regular basis. L M Economic Development continues to recommend the renewal of our contractual agreement with Economic Development Systems. In our opinion, they have worked hard to build momentum which should lead to results in the near future. if this contract lapses, even if another firm or individual is retained in the future, this momentum maybe jeopardized, and most of the baseline work will need to be re -done. We especially believe the city benefits with EDS from "economies of scale," in that they also represent a number of other cities, and can get tenants' attention better because of this. For example, a tenant interested in Pine Avenue in Long Beach or Old Pasadena will also hear about opportunities in our Downtown. This works to our advantage, and probably could not be replicated by another firm or individual due to the extensive client list of EDS. Exhibits ]irrVretaiVedsl 1199 N EXHIBIT #1 I 'VDI 3l��reo - m cm 436 Calle Mayor Second Floor Redondo Beach, California 90277 October 28, 1999 310.375.5821 Fax: 310.375.8641 Dear Honorable Mayor and Couneilmembers: I would like to take this opportunity to reiterate why the City of Huntington Beach should extend its contract with Economic Development Systems ("EDS") to continue its retail recruitment program in the downtown area. The Retail Report of June 1999 reflects substantial recruitment activity and interest from quality retailers and restaurants. This current activity level is the result of EDS contacting over 1,000 retailers, restaurants and entertainment businesses while conducting tours with more than 50 brokers and tenants during the Iast two years. At the commencement of our contract, there were a limited number of national and regional tenants, such as Starbucks and Louise's Trattoria, in the district. Since many credit tenants require co -tenancy of other known companies and are not pioneers, and in addition, Huntington Beach had not yet proven itself to be a strong retail location, EDS had little to work with in the early stages of the contract. Nonetheless, our recruitment activities have increased the prospective tenant's awareness of Huntington Beach as an up and coming alternative to the other more established neighboring communities and have raised the level of demand for the area that we are now seeing. The downtown, while accommodating 11 million visitors per year is still falling short with the existing tenant mix in providing residents with high quality shopping and dining opportunities. The opening of Duke's in the fail of 1998 and Chimayo in February of 1999 provided a "success story" that EDS could spread throughout the retail industry. Our introduction of a respected redevelopment specialist, CIM, to downto om Huntington Beach and the subsequent approval of its DDA for the development of BIocks 104 and 105 gave us the needed "push" to attract the serious attention of tenants that we had been communicating with for almost two years. It is important to note that the majority of tenants with whom we are currently working, such as Restaurants Unlimited (Kincaids), Rock Bottom Restaurants, Kings Fish House and Laemmle Theaters, is the direct result of our work with these tenants in other markets. These high caliber tenants, along with Yujean Kang's Restaurant, voted one of the top LA restaurants by Zagat Surveys, are considering Huntington Beach only because Page 2 Huntington Beach of our relationships with them from dealings in Pasadena and Long Beach, other clients of EDS. We have used our work in other markets over the years to maximize our exposure to and contact with a variety of high quality tenants. We have consistently delivered to them successful location opportunities which provide them with a level of confidence in us as consultants that is unparalleled by most government outreach programs. For example, EDS has been working in Old Pasadena since 1994. In that time we have recruited Cheesecake Factory, Saks Main Street, Buca di Beppo, Pottery Barn and Banana Republic Furniture and have assisted in the turnover of stagnant properties to new, vibrant ownership. Over the course of seven years in Long Beach, we recruited over 200,000 square feet of downtown tenants such as Rock Bottom Restaurants, Z Gallerie, Crate & Barrel, and Papashon. For the record, the Z Gallerie lease took almost three years to orchestrate with substantial assistance from the city, It is, therefore, not surprising to find Plaza Almeria, seeking a higher caliber of tenant, still with a substantial percentage of space available. Ourjoint efforts confirm the fact that Huntington Beach, with its seasonality and limited daytime population is not yet a priority for most street - front retailers. In closing, high quality tenants that Huntington Beach residents deserve, are seeking a committed city with professional programs in place to create and maintain successful retail environments such as those of your nearby competing communities. A change to the current recruitment program would certainly stall the current momentum resulting from two years' work. The current economy is strong with retailers and restaurateurs in expansion modes - this may not be the case a year from now. If you, as city leaders, are happy with the downtown you now have, you do not need EDS. Our recruitment program has momentum but still requires much work. If you want to attract the type of tenants with whom we are working and continue to communicate to the retail world that the City of Huntington Beach is committed to enhancing its downtown, then please vote to extend the city's contract with EDS. Sincerely, Economic Development Systems Pat S. Hurst Principal ames L. Harrigan Principal EXHIBIT #2 OR "Co omic Development Systems HUNTINGTON BEACII PRELIMINARY NATIONAL AND REGIONAL TENANT PROSPECTS DoWNToivN CORE SPECIALTY FOODS Wild Oats Trader Joe's Wine Merchants Bristol Farms STATIONERY Papyrus HOME F RNI HIN / R Crate & Barrel Z-Gallerie Restoration Hardware Art of Hands Pottery Barn Wyland Gallery The Tile Shop Hold Everything Williams - Sonoma Smith & Hawken Pottery Barn JAZZ and _BLUE CS LUBS Blues Cafe, etc. OrTICAU5UNGLASSES Sunglass Hut Optical Fashions ,wrbwr�nR.y. %—%d0.w. *► ., P..J r ME PRELIMINARY NATIONAL AND REGIONAL TENANT PROSPECTS AL'BAREL & ACCESSORIES The Gap Gap Kids Banana Republic J, Crew Urban Outfitters Guess Village Hat Shop Anthropology Joan & David French Connection Talbot's Kids SHOE STORES/LEATHER/LUGGAGE Boulevard Footwear & Bootery Madison's Bally's Retail ]3ED and BATIK Bath & Body Works Origins Bath DRUGST RES Walgreens O KS Rizzoli's Barnes & Noble Upstart Crow B rentanos Borders Learning Smith 2 V PRELIMINARY NATIONAL AND REGIONAL TENANT PROSPECTS SPORTING GOOD Sport Chalet Copeland Sports Walking Store M�•3�� FAO Schwartz Sesame Street Bicycle Shop E TAUR NTS -LIQUOR La Opera Houston's El Fornaio McCormick & Schmick Cheesecake Factory Buca California Pizza Kitchen Pine Avenue Fish House Ruth's Chris Steak House MISCELLANEOU Rand McNally 3 Fii . 20 99 1 1 : 2GP Jude• Miller 805-1'41-7247 P.2 April 12, 1999 Mr. David Biggs Director, Economic Development City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 Re: Retail Recruitment Campaign Dear David: 436 Celle Mayor Second Floor Redondo Beach, Caliiomio 90277 310.375.5821 FA7t 310.375.8641 Below you will find our current active" prospect list, compiled for Downtown Huntington Beach and, specifically, for Plaza Almeria. This report indicates prospects who we specifically sent a marketing package, Including Plaza Almeria brochures or copies when brochures were unavailable. We are both following up with these prospects and referring them to Joe Ehret when their need for space seems imminent. Bucca de Beppo Van's Triple Crown Store Legends Sport Bar Skecher's Second Spin Records Upscale Greek Restaurant (Name Not Provided) Gordon Biersch Brewing Company Irwin Hyman - Restaurant broker Don Moser - Restaurant Broker Bakery - Tim McMahon - Broker Big Dog Esprit de Corp. Hennessey's Kelly's Coffee & Fudge Pottery BarnNVilliam Sonoma Timbuktu Station Vans .,. m-ft+r. Industrial Shoe Warehouse Karl Strauss Brewery Panda Express Something's Fishy Uncle Bill's Restaurant Sunglasses Hut Mert Wailen - Restaurant Broker Jack Anderson - Restaurant Broker The Arches Banana Republic Cheesecake Factory Fuddruckers Ira Spilky - Restaurant Broker Pierview Cafe TG1Fridays Tommy Bahamas/Cafe Yujean Kang's MQ--"-ice 1'): z7 fnS ?e1 77d? 9G'/. P. 02 Flpr• a 99 11:26p .Ludy 'i l ler 095-? . � -7247 p.3 Mr. David Biggs April 12, 1999 Page 2 David, please do not hesitate to tali me if you have any questions regarding this matter. Sincerely, ECONOMIC DEVELOPMENT SYSTEMS Jim rrigan Pri ipal Attachments cc: Judy Miller Pat Hurst i,ry�_•'xa_� ooa 4 ^I• ZY RpS 12A 1 7]d7 qF& P. 03 June 21, 1999 Mr. David Biggs, Director Economic Development City of Huntington Beach 2000 Main Street Huntington Beach, California 92648 A36 Colle Mayor Second Floor Redondo Beach, California 90277 310.375.5821 FAX.310.375.8641 �tLc f ter � RE: Summary of Retail Recruitment Efforts ) iNA s •ti Dear David: ' Enclosed herein please find the Huntington Beach Spring/Summer 1999 Retail Report as well as the original master list used to start our Retail Recruitment Program in 1997. During the past two years, Economic Development Systems ( EDS ) has conducted a retail recruitment campaign that is multi -faceted in nature. While recent transactions in the local marketplace have confirmed the desire by a number of tenants to learn more about the potential for success, EDS has contacted over 1,000 retailers, restaurateurs and entertainment businesses and toured numerous retail brokers and restaurant representatives through the downtown area in addition to coordinating personal meetings at trade shows and conferences. While maintaining and initiating contact with various restaurateurs and retailers, EDS has met with the majority of district property owners or their representatives. Ongoing discussions include: Mike Abdelmuti JT Development Harlow & Associates Shoul Levy Shea Commercial Properties/ Capital Pacific Holdings Robert Mayer Corp. Argus Commercial/ Arizona Partners Robert Koury Properties Mulligans Properties Goodman Properties, LLC Zeid-en Property Mr. David Biggs Retail Recruitment Efforts Page 2 To enhance the viability of the district, EDS has been working with the above property owners as well as outside investor/developers to identify opportunities for future growth. As a result, EDS has increased the exposure of Downtown Huntington Beach beyond the retail tenant community. Thus, positioning Huntington Beach as an attractive alternative in the overall marketplace. While our recruitment activities have not yet resulted in a transaction with a major tenant, we believe we have helped create a higher level of demand for the area. This demand has been further substantiated through ongoing meetings and personal contact with those representatives. In addition, EDS has sought new and expanding concepts that would be appropriate for Downtown Huntington Beach. Since last July, EDS has represented Huntington Beach at national and regional trade shows and real estate industry events such as international Council of Shopping Centers' (ICSC) Annual Conference in Las Vegas, Western Division Conference in Palm Desert, Deal Making Sessions and the Southern California Idea Exchange. In addition, local conferences such as The Shopping Center Game, iCSC Westside/South Bay/Long Beach luncheons and restaurant broker meetings have provided EDS the opportunity to discuss the district personally with prospective tenants and brokers. . Much of our recruitment campaign has involved updating the tenant and brokerage communities on activities in the area but most importantly, keeping the Huntington Beach name in front of decision makers and influential brokers. These relationships have proven to be critical, as they are often the impetus for further discussions and opportunities. It is important to note that EDS has maintained constant contact with tenants and brokers that were sent marketing packages early in the program in order to provide new information regarding. subsequent developments in the district. Mr. David Biggs Retail Recruitment Efforts Page 3 As you know, gentrification of a successful downtown shopping, dining and entertainment district is one that takes several years to evolve. We welcome the opportunity to continue our recruitment efforts to ensure that the growth of Downtown Huntington Beach benefits the community and promotes the objectives of the city. We look forward to the opportunity to answer questions you may have regarding our recruitment program with further discussion scheduled for Friday, June 25th. Sincerely, Economic Development Systems Pat S. Hurst J' Harrigan Principal rincipal encl. THE LANGHORNE CO. 848 BRICKELL AVE. MIAMI, FL 33130 305-536-1000 THE FRANZEN CO. 3235 DONALD DOUGLAS LOOP SANTA MONICA, CA 90405 310-391-1784 ECONOMIC DEVELOPMENT SYSTEMS 436 CALLS MAYOR SECOND FLOOR REDONDO BEACH, CA 90277 310-375-5821 URBAN STREET ADVISORS 949-733-3560 REQUEST FOR PROPOSALS FOR PROFESSIONAL CONSULTANTS FOR TENANT RECRUITMENT PROGRAM FOR _. DOWNTOWN HUNTINGTON BEACH CS tITI OF HUKTINSTOU MAIN The Department of Economic Development City of Huntington Beach 2000 Main Street Huntington Beach, CA. 92648 August,1999 REQUEST FOR PROPOSAL FOR TENANT RECRUITMENT PROGRAM - CONSULTANT SERVICES I. Invitation _to Submit Proposgls; The Redevelopment Agency of the City of Huntington Beach is seeking firms with experience in conducting a retail recruitment / attraction program for its Do«ntown redevelopment project area. The Agency began contracting for a tenant recruitment program in April 1997, and is interested in continuing assistance with a qualified firm. The contract proposed would be for up to two (2) years. The Agency's goals in the Downtown will be furthered through an increase in the number, quality, and diversity of retail uses. The selected firm will report to Director of Economic Development and will cooperate with a variety of clients, including local commercial property owners, tenants, and brokers to meet this programs objectives. Over the past decade, downtown Huntington Beach has made substantial improvements and is filled with shoppers, tourists and visitors throughout the year. However, it is time to expand the retail mix within the area to attract more mature patrons to augment those already present. The near term future presents several opportunities as outlined in the attached materials. 2. The proposal shall include the following_ A. Company Experience and History, In addition to a brief description of the company, please provide descriptions of similar programs your firm has operated. What is the current status of these programs? What distinguishes your firm from others in the field? B. Proposed Scope of Work. How will your firm proceed to help increase the quality and diversity of retail tenants in Downtown Huntington Beach? What obstacles and opportunities do you see and how do foresee handling them? C. Staff Experience. Include the background and professional experience working in brokerage, tenant attraction/rceruitment; including any similar work performed with governmental agencies. D. Client List. Provide a minimum of three clients your firm represented within the last three years. Please provide necessary contact information for these references. E. Cost Estimate and Rate Schedule for Professional Services. Work shall be performed on a "not to exceed" fee with billings paid for actual expenses on a time and materials basis. Your submittal should include your proposed dollar total er ear for a two (2) year contract, plus hourly billing rate information. Payments received from the Redevelopment Agency/City of Huntington Beach for services rendered under this proposed contract by the selected firm will be considered as full compensation for those services. F. Insurance -Information. The consultant must provide Workers Compensation Insurance for its employees and provide $ I,000,000 general liability insurance and professional liability insurance naming the City as additional insured. To be effective, such certificates must be approved by the City Attorney's office. For the RFP, the consultant may either provide the required insurance certificates or state that the required certificates shall be delivered prior to the contract award. G. Huntington Beach Business License. The Huntington Beach Ordinance Code requires that all contractors and subcontractors engaging in business within the City must have a valid Huntington Beach business license. Please provide your Huntington Beach business license number or a statement that if selected your firm will obtain a Huntington Beach business license. 3. City Commitment. The City is prepared to facilitate the success of the assignments by providing a reasonable amount of staff support and access to needed information, where available. 4. Selection Process. Of primary importance in the selection of a consultant will be the overall quality of the proposal as evidenced by previous accomplishments and a history of success in similar efforts The selection process includes staff screening the RFP responses to evaluate the consultant's capability to do the work. Staff, at its own discretion, may also conduct follow up interviews with former clients to ascertain service satisfaction and may, at its sole discretion, conduct personal interviews. The City maintains the option to cancel the RFP process at any time. 5. City Time Schedule for Selection: RFP Response Deadline August 30, 1999 Interviews Begin (if warranted) September 6, 1999 Redevelopment Agency approval of Contract September 20, 1999 6. Submit Three topics to; Jim Lamb Project Manager 714.375.5185 (T) 714.375.5087 (F) City of Huntington Beach 2000 Main Street Huntington Beach, California 92645 CITY OF HUNTINGTON BEACH PROFILE: Huntington Beach, incorporated in 1909, is located on the Southern California coast 35 miles southeast of Los Angeles. With a population over 190,000 in the 27 square miles adjacent to the 405 freeway, the City provides high quality community services through recreation, cultural activities, police and fire protection. Redevelopment efforts are concentrated in five areas, including the downtown near the newly re -constructed Huntington Beach Pier Plaza. In addition to the enclosed material, you may wish to check-out our web site at www.hbbiz.com v v RCA ROUTING SHEET INITIATING Economic Development DEPARTMENT: SUBJECT: Contract with Economic Development Systems, Inc. COUNCIL MEETING DATE: i January 3, 2000 RCA ATTACHMENTS STATUS Ordinance (w/exhibits & legislative draft if applicable) Not Applicable Resolution (w/exhibits & legislative draft if applicable) Not Applicable Tract Map, Location Map and/or other Exhibits Not Applicable Contract/Agreement (w/exhibits if applicable) (Signed in full Y the City Aftome - Attached Subleases, Third Party Agreements, etc. (Approved as to form by City Attome Not Applicable Certificates of Insurance Operoved by the City Attome Attached Financial Impact Statement Unbud et, over $5,000 Not Applicable Bonds If applicable) Not Applicable Staff Report If a licable Not Applicable Commission, Board or Committee Report If applicable) Not Applicable Findings/Conditions for Approval and/or Denial Not Applicable EXPLANATION FOR MISSING ATTACHMENTS REVIEWED RETURNED FORWARDED Administrative Staff -z : S/f Assistant City Administrator Ins ial City Administrator Initial City Clerk EXPLANATION FOR RETURN OF ITEM: I __ c� P1�- �f� `� ,.o Kff' cv� r� 1ljt 61445— EC-Dev-zhr. Soraee - Ea.. &if, CounciVAgency Meeting Held: ZQ 14A7 DefeFed _ontinued to: 11�1�99 W-Approved ❑ Conditional'y Approved 0 Denied 25 d .lerk's Signature Council Meeting Date: October 4, 1999 Department ID Number: ED 99-51 FrArn �i `fdftY OF HUNTINGTON BEACH ' REQUEST FOR REDEVELOPMENT AGENCY ACTION SUBMITTED TO: HONORABLE CHAIRMAN AND REDEVELOPMENT AGENCY MEMBERS n--,'�c� SUBMITTED BY: RAY SILVER, Executive Director PREPARED BY: DAVID C. BIGGS, Director of Economic Development = C SUBJECT: Contract for Professional Services -- Economic Development n Systems, Inc. (EDS) Statement of Issue, Funding Source, Recommended Actlon, Alternative Action(s), Analysis, Environmental Status, Attachment(s) 11 Statement of Issue: The Redevelopment Agency requires assistance in recruitment of appropriate retail tenants for the Main -Pier subarea of the redevelopment project area for both existing vacancies and planned development. Funding. Source: Funding for this Contract is contained in the 1999-2000 Redevelopment Agency Budget. Recommended Action: Motion to: 1. Approve and authorize the execution of the attached contract between the Redevelopment Agency and Economic Development Systems, Inc. (EDS) to provide professional services in retail tenant recruitment for a period of one year for a not -to -exceed cost of $88,720. Alternative Action(s): Do not approve the attached contract. Analysis: On April 21, 1997, the Huntington Beach Redevelopment Agency approved a contract with Economic Development Systems (EDS) to assist staff and local downtown property owners to help implement the Downtown redevelopment plan through the marketing of the area and the expansion of the retail tenant mix. The contract was awarded to EDS because of their extensive experience in retail tenant attraction in areas such as Pine Avenue in Long Beach and Old Town Pasadena. During the past two and one-half years, EDS has worked closely with staff to not only establish a data bank of the potential tenants for downtown, but has made good progress in exposing our downtown to a variety of retail and restaurant tenants. C, 3 REQUEST FOR REDEVELOPMENT AGENCY ACTION MEETING DATE: October 4,1999 DEPARTMENT ID NUMBER: ED 99-51 Over this summer, an interim'contract was awarded to EDS to allow time to complete work they were doing for the Agency, such as assisting in our first open house for retail brokers and arranging a visit by a key prospective restaurant tenant. Also during this period, staff issued a Request For Proposals for professional services for a tenant recruitment program. We mailed the RFP to 4 firms who provide these services and received proposals from 2 agencies. After reviewing the submittals, staff is recommending retaining the services of Economic Development Systems. Staff believes that the redevelopment of the Main -Pier area is at a key juncture with impending private and public improvements in the downtown core and significant new commercial space to be developed in areas beyond the core. Knowledgeable professional assistance in retail recruitment over a relatively long term is still necessary to meet the Agency's objectives for tenant mix, tax increment and sales tax generation. For these reasons, staff recommends approval of the attached contract. Environmental Status: Attachment s 1. Professional Services Contract with Economic Development Systems. 2. Proposal from Economic Development Systems dated August 23, 1999. (Referred to as "Exhibit A' in Contract) UDSRAA999 -2- 09123199 5:09 PM m Professional Services Contract Economic Development Svstems(EDS) ATTACHMENT #1 � }Jb I ley PROFESSIONAL SERVICES CONTRACT BETWEEN THE REDEVELOPMENT AGENCY OF THE AGENCY OF HUNTINGTON BEACH AND ECONOMIC DEVELOPMENT SYSTEMS FOR THE DEVELOPMENT AND IMPLEMENTATION OF A TENANT RECRUITMENT PROGRAM FOR THE DOWNTOWN AREA THIS AGREEMENT is made and entered into this day of 199_, by and between the Redevelopment Agency of the City of Huntington Beach, a public body of the State of California, hereinafter referred to as "AGENCY," and ECONOMIC DEVELOPMENT SYSTEMS a California partnership, hereinafter referred to as "CONSULTANT." WHEREAS, AGENCY desires to engage the services of a consultant to implement a marketing promotions action plan for recruiting target market restaurants and tenants in the City of Huntington Beach; and Pursuant to documentation on file in the office of the City Clerk, the provisions of the Huntington Beach Municipal Code, Chapter 3.03, relating to procurement of professional service contracts have been complied with; and CONSULTANT has been selected to perform said services, NOW, THEREFORE, it is agreed by AGENCY and CONSULTANT as follows: I. WORK STATEMENT CONSULTANT shall provide all services as described in the Request for Proposal ("RFP"), and CONSULTANT's Proposal dated August 23, 1999 (both of which are hereinafter referred to as Exhibit "A" ), which are attached hereto and incorporated into this AGREEMENT by this reference. These services shall sometimes hereinafter be referred to as the "PROJECT." spreedsystl4w/9/17199 CONSULTANT hereby designates Jim Harrigan who shall represent it and be its sole contact and agent in all consultations with AGENCY during the performance of this AGREEMENT. 2. AGENCY STAFF ASSISTANCE AGENCY shall assign a staff coordinator to work directly with CONSULTANT in the performance of this AGREEMENT. 3. TIME OF PERFORMANCE Time is of the essence of this AGREEMENT. The services of CONSULTANT are to commence as soon as practicable after the execution of this AGREEMENT and all tasks specified in Exhibit "A" shall be completed no later than twelve (12) months from the date of this AGREEMENT. These times may be extended with the written permission of AGENCY. The time for performance of the tasks identified in Exhibit "A" are generally to be shown in the Scope of Services on the Work Program/Project Schedule. This schedule may be amended to benefit the PROJECT if mutually agreed by AGENCY and CONSULTANT. 4. COMPENSATION In consideration of the performance of the services described herein, AGENCY agrees to pay CONSULTANT a fee not to exceed Eighty -Eight Thousand Seven Hundred Twenty Dollars ($88,720), inclusive of occasional expense. Expenses shall be substantiated by monthly receipts, for use by CONSULTANT in promoting the Project Area to potential. tenants and/or developers. Use of funds shall include meals, telephone calls, delivery, graphics, printing, entertainment; the pro -ration with other client cities/agencies, of costs for regional and national retail conferences and travel/hotels for same. The maximum amount of these expenses AGENCY will reimburse CONSULTANT shall not exceed Five Thousand Dollars ($5,000). 2 agree/edsyst/dw/9/17/99 0-9 `ro Fee Schedule: The fees shall be calculated from the following schedule: Principal billing rate is $170 per hour; Senior Consultant rate is S 160 per hour, Senior Analyst rate is $105 per hour and Administrative/Technical support rate is $65 per hour. 5. PRIORITIES In the event there are any conflicts or inconsistencies between this AGREEMENT, the AGENCY's RFP, or the CONSULTANT's Proposal, the following order of precedence shall govern: 1) AGREEMENT, 2) the CONSULTANT's Proposal, and 3) the E10ENCY's RFP. 6. EXTRA WORK In the event AGENCY requires additional services not included in Exhibit "A," or changes in the scope of services described in Exhibit "A," CONSULTANT will undertake such work only after receiving written authorization from AGENCY. Additional compensation for such extra work shall be allowed only if the prior written approval of AGENCY is obtained. 7. METHOD OF PAYMENT A. CONSULTANT shall be entitled to progress payments toward the fixed fee set forth herein in accordance with the progress and payment schedules set forth in Exhibit "A." B. Delivery of work product: A copy of every memorandum, letter, report, calculation and other documentation prepared by CONSULTANT shall be submitted to AGENCY to demonstrate progress toward completion of tasks. In the event AGENCY rejects or has comments on any such product, AGENCY shall identify specific requirements for satisfactory completion. Any such product which has not been formally accepted or rejected by AGENCY shall be deemed accepted. 3 ,gr,ea$ysv�w.9nrM C. CONSULTANT shall submit to AGENCY an invoice for each progress payment due. Such invoice shall: 1) Reference this AGREEMENT; 2) Describe the services performed; 3) Show the total amount of the payment due; 4) Include a certification by a principal member of CONSULTANT's firm that the work has been performed in accordance with the provisions of this AGREEMENT; and 5) For all payments include an estimate of the percentage of work completed. Upon submission of any such invoice, if AGENCY is satisfied that CONSULTANT is making satisfactory progress toward completion of tasks in accordance with this AGREEMENT, AGENCY shall promptly approve the invoice, in which event payment shall be made within thirty (30) days of receipt of the invoice by AGENCY. Such approval shall not be unreasonably withheld. If AGENCY does not approve an invoice, AGENCY shall notify CONSULTANT in writing of the reasons for non -approval within seven (7) calendar days of receipt of the invoice, and the schedule of performance set forth in Exhibit "A" shall be suspended until the parties agree that past performance by CONSULTANT is in, or has been brought into compliance, or until this AGREEMENT is terminated as provided herein. D. Any billings for extra work or additional services authorized by AGENCY shall be invoiced separately to AGENCY. Such invoice shall contain all of the information required above, and in addition shall list the hours expended and hourly rate charged for such time. Such invoices shall be approved by AGENCY if the work performed is in accordance with 4 a greeted s ys t/d w19117199 the extra work or additional services requested, and if AGENCY is satisfied that the statement of hours worked and costs incurred is accurate. Such approval shall not be unreasonably withheld. Any dispute between the parties concerning payment of such an invoice shall be treated as separate and apart from the ongoing performance of the remainder of this AGREEMENT. S. DISPOSITION OF PLANS ESTIMATES AND OTHER DOCUMENTS CONSULTANT agrees that all materials prepared hereunder, including all original drawings, designs, reports, both field and office notices, calculations, maps, memoranda, leffers and other documents, shall be turned over to AGENCY upon termination of this AGREEMENT or upon PROJECT completion, whichever shall occur first. In the event this AGREEMENT is terminated, said materials may be used by AGENCY in the completion of the PROJECT or as it otherwise sees fit. Title to said materials shall pass to AGENCY upon payment of fees determined to be earned by CONSULTANT to the point of termination or completion of the PROJECT, whichever is applicable. CONSULTANT shall be entitled to retain copies of all data prepared hereunder. 9. HOLD HARMLESS CONSULTANT shall protect, defend, indemnify and hold harmless AGENCY, its officers, officials, employees, and agents from and against any and all liability, loss, damage, expenses, costs (including without limitation, costs and fees of litigation of every nature) arising out of or in connection with performance of this AGREEMENT or its failure to comply with any of its obligations contained in this AGREEMENT except such loss or damage which was caused by the sole negligence or willful misconduct of AGENCY. 5 agrecledsysddw/9/17/99 10. WORKERS' COMPENSATION INSURANCE Pursuant to California Labor Code Section 1861, CONSULTANT acknowledges awareness of Section 3700 et seq. of said Code, which requires every employer to be insured against liability for workers' compensation; CONSULTANT covenants that it will comply with such provisions prior to commencing performance of the work hereunder. CONSULTANT shall maintain workers' compensation insurance in an amount of not less than One Hundred Thousand Dollars (5100,000) bodily injury by accident, each occurrence, One Hundred Thousand Dollars (S 100,000) bodily injury by disease, each employee, Two Hundred Fifty Thousand Dollars ($250,000) bodily injury by disease, policy limit. CONSULTANT shall require all subcontractors to provide such workers' compensation insurance for all of the subcontractors' employees. CONSULTANT shall furnish to AGENCY a certificate of waiver of subrogation under the terms of the workers' compensation insurance and CONSULTANT shall similarly require all subcontractors to waive subrogation. 11. GENERAL LIABILITY INSURANCE In addition to the workers' compensation insurance and CONSULTANT's covenant to indemnify AGENCY, CONSULTANT shall obtain and furnish to AGENCY, a policy of general public liability insurance, including motor vehicle coverage covering the PROJECT. Said policy shall indemnify CONSULTANT, its officers, agents and employees, while acting within the scope of their duties, against any and all claims arising out of or in connection with the PROJECT, and shall provide coverage in not less than the following amount: combined single limit bodily injury and property damage, including products/completed operations liability and blanket contractual liability, of $1,000,000 per occurrence. If coverage is provided under a form which includes a designated general aggregate 6 agreeledsyst1d wl9/ 17M9 k*.01 limit, the aggregate limit must be no less than $1,000,000 for this PROJECT. Said policy shall name AGENCY, its agents, its officers, employees and volunteers as Additional Insureds, and shall specifically provide that any other insurance coverage which may be applicable to the PROJECT shall be deemed excess coverage and that CONSULTANT's insurance shall be primary. Under no circumstances shall the above -mentioned insurance contain a self - insured retention, or a "deductible" or any other similar form of limitation on the required coverage. I2. PROFESSIONAL LIABILITY INSURANCE CONSULTANT shall furnish a professional liability insurance policy covering the work performed by it hereunder. Said policy shall provide coverage for CONSULTANT's professional Iiability in an amount not less than S 1,000,000 per occurrence and in the aggregate. A claims -made policy shall be acceptable if the policy further provides that: A. The policy retroactive date coincides with or precedes the professional services contractor's start of work (including subsequent policies purchased as renewals or replacements). B. CONSULTANT will make every effort to maintain similar insurance during the required extended period of coverage following project completion, including the requirement of adding all additional insureds. C. if insurance is terminated for any reason, CONSULTANT agrees to purchase an extended reporting provision of at least two (2) years to report claims arising from work performed in connection with this AGREEMENT. 7 , Baca syst/q w /9/ 11,1" L% D. The reporting of circumstances or incidents that might give rise to future claims. 13. CERTIFICATES OF INSURANCE Prior to commencing performance of the work hereunder, CONSULTANT shall furnish to CITY certificates of insurance subject to approval of the City Attorney evidencing the foregoing insurance coverages as required by this AGREEMENT; said certificates shall: A. provide the name and policy number of each carrier and policy; B. " shall state that the policy is currently in force; and C. shalI promise that such policies shall not be suspended, voided or canceled by either party, reduced in coverage or in limits except after thirty (30) days prior written notice; however, ten (10) days prior written notice in the event of cancellation for nonpayment of premium. CONSULTANT shall maintain the foregoing insurance coverages in force until the work under this AGREEMENT is fully completed and accepted by AGENCY. The requirement for carrying the foregoing insurance coverages shall not derogate from the provisions for indemnification of AGENCY by CONSULTANT under the AGREEMENT. AGENCY or its representative shall at all times have the right to demand the original or a copy of all said policies of insurance. CONSULTANT shall pay, in a prompt and timely manner, the premiums on all insurance hereinabove required. 14. INDEPENDENT CONTRACTOR CONSULTANT is, and shall be, acting at all times in the performance of this AGREEMENT as an independent contractor. CONSULTANT shall secure at its expense, and be responsible for any and all payment of all tares, social security, state disability insurance 8 agrceledsyst d w/9/17/99 I �I! compensation, unemplo}rnent compensation and other payroll deductions for CONSULTANT and its officers, agents and employees and all business licenses, if any, in connection with the services to be performed hereunder. 15. TERMINATION OF AGREEMENT All work required hereunder shall be performed in a good and workmanlike manner. AGENCY may terminate CONSULTANT's services hereunder at any time with or without cause, and whether or not PROJECT is fully complete. Any termination of this AGREEMENT by AGENCY shall be made in writing, notice of which shall be delivered to CONSULTANT as provided herein. 16. ASSIGNMENT AND SUBCONTRACTING This AGREEMENT is a personal service contract and the supervisory work hereunder shall not be delegated by CONSULTANT to any other person or entity without the consent of AGENCY. 17. COPYRIGHTSIPATENTS AGENCY shall own all rights to any patent or copyright on any work, item or material produced as a result of this AGREEMENT. 18. AGENCY EMPLOYEES AND OFFICIALS CONSULTANT shall employ no AGENCY official nor any regular AGENCY employee in the work performed pursuant to this AGREEMENT. No officer or employee of AGENCY shall have any financial interest in this AGREEMENT in violation of the applicable provisions of the California Government Code. 0 mgme,'edsyst/d w/9/17/99 19. NOTICES Any notice or special instructions required to be given in writing under this AGREEMENT shall be given either by personal delivery to CONSULTANT's agent (as designated in Section I hereinabove) or to AGENCY's Director of Economic as the situation shall warrant, or by enclosing the same in a sealed envelope, postage prepaid, and depositing the same in the United States Postal Service, addressed as follows: TO AGENCY: David Biggs, Director of Economic Development City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 20. IMMIGRATION TO CONSULTANT: Jim Harrigan, Principal Economic Development Systems 436 Calle Mayor, 2nd FI. Redondo Beach, CA 90277 CONSULTANT shall be responsible for full compliance with the immigration and naturalization laws of the United States and shall, in particular, comply with the provisions of the United States Code regarding employment verification. 2I. LEGAL SERVICES SUBCONTRACTING PROHIBITED CONSULTANT and AGENCY agree that AGENCY is not liable for payment of any subcontractor work involving legal services, and that such legal services are expressly outside the scope of services contemplated hereunder. CONSULTANT understands that . pursuant to Huntington Beach City Charter Section 309, the City Attorney is the exclusive legal counsel for AGENCY; and AGENCY shall not be liable for payment of any legal services expenses incurred by CONSULTANT. 10 a grmedsysdRw/9111'99 V �.d- 22. ATTORNEY'S FEES In the event suit is brought by either party to enforce the terms and provisions of this AGREEMENT or to secure the performance hereof, each party shall bear its own attorney's fees. 23. ENTIRETY The foregoing, and Exhibit "A" attached hereto, set forth the entire AGREEMENT between the parties. IN WITNESS WHEREOF, the parties hereto have caused this AGREEMENT to be executed by and through their authorized offices the day, month and year first above written. CONSULTANT: ECONOMIC DEVELOPMENT SYSTEMS JIM H4RRIGAN, Itlx General Partner WED AND APPROVED: • � � tom.. Executive Dire or REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body of the State of California Chairperson ATTEST: Agency Clerk APPROVED AS TO FORM: A� Agency Attorney QF INITIATED AND APPROVED: . & L/ C. /ao Director of Economi Development 11 agme!edsyst/dw/9/21/99 DOWNTOWN HUN INGTON BEACH Insurance Information AFL W tl!. �.f � ....Y. .� --- - .--•----:..ram ....,. re��.....�`.w..._..- ...._:�=-�.•`.a'F'� Thts "T11t$ CERTIFIGTE I ONLrwoa+a�i- AA CONF�S GARBER ASSOCIP,TES INC "OLMEM TIM CUM P O BOX 3669 ALTER THE COVEPAc MAWAATTAN SEACH CA 90255 COMM 07/21/95 SLIEU A6 A MATT .H U# im-otTmAl1w" NO RIWdTS LIPOM THE CIUMF1CATZ &ic�mnn n ey T E NOT POUcIES SELOW i CCLW&NV A FIRST FINANCIAL INS. CO. iMLk! D (xy��Y JIM HARRrc,AN AND PAT HURST �, �•_ ECONOMTC DEVELOPVJ= SYSTEMS 436 W.LE MAYOR C REDO,'MO BEACH, CA 90271-6146 `CCJOA,1„ .."�. THa is To cEmwr TNAr 1w MLIC'[u OF M+I upANC€ ULSTED SEIOw HAVE SEEN ASUEO TO THE INSURED 1 mca AAO+tE FOR THE pfJL1CY F'EIi100 INOZATFO. NOTlWM8TAML".Ma ANY FEMIAEMF Wt. Tv" OR ecoi0=4 Of ANY CoMrRACr Oil CTmER OocumENr vnTm PC' ncr TO w"C" Tfua CEp nSCATE MAY as UMMO OR MAr olQrITAW. THE P&WRAWA SYTOr1000 IT TH[ VGL=f$ GESCAiokO MEMN Is suB wCT TO ALL TH! TEf S. orcLV MNS AMQ CONCMC%g or SUCH PmmWs LDS M ay.OwN WAY HAVE REES PEDUCED BY PAM CLAIMS. 00 1 T"OrInuft IICt rOtALY*11I1*!R a � i O T �' eoicAA4t1+�rlrrr 1 � 1 X aOK..v%naL O"P A L USAOX r CtASRu&w UJI c=% P0148-0 S00234 06/04/99 06/04/00 o>M�ra Am,n+��oas r+cr i ww" oth0%hLAc08arr-M • 11 2,000.00 riyouc n . c_om oo Arm i INCLUDE ►c XONAi a AW KA r► it 14000,00 eAdi CCCL 0% I 1 1,000,00 &"ru r-ffur„d,*Ate! -t 100.00 I yEp pa w er+eN 1{ a L U U Aw+AUTO i;i aV;}.i:� t57>aO�ttiL tt 1 iGioiAmauRT� j; ..} a tz! At �C� a;. Pew•+nro 11 �OAvros n,�n+Ia Autaa I 47 /zIF?7 k �&&ALI*LUa&M AiM2 M& • CA Ate- . �MnA�Trq ` 'O114AT11A*1AUT401IL� �•T=•.' _:»•=• toCt�lLU►rE � tYcasR�y,a�MTY _ vs:ACGL'3OWN=• w+�rtiA rCA.A � AL17l�¢AtE t �MTMfewti�lyR i°4 . RCUI� • IOJL1'U� f OF:t'J77 �■r rsC. OREAtt • EAR �adlors'R i � 1 i 0[IiAVT�Or Or O�RMATsO�tAOCA (rubs CERTIFICATE HOLDER IS NAMED AS AN ADDITIONAL INSURED. *LO DAYS NOTICE OF CANCELLATION FCR NON PAYMENT OF PREMIUM. CITY OF HIMINGTON 9EACH AND THE H=INGTON REACH RHDEVELOPMENT AGCY ITS AGENTS . OFFICERS, & EMPLOYEES 2000 MAILS STREET HUNTINGTON, CA 92648 WW W ^Wf Or TM! ASWC OAcM= lCu=2 St *AAM= 8UVM "M 0""llou cart TII ftw. vw nsuwo cowAw u%&MLi==vwA- aU— oar* Ofirr'M NOT" TO T)Ae CL4MVCAT[ POUR II MNO 90 tree W1, 1C7C ESTATE_ ' P O. gox 420807,.SAN FRANCISCO, CA 94142-0807 COMPENSATION, INSURANCE ' P V N D.:':CERTIFICATE OF WORKERS` COMPENSATION INSURANCE S ,_ , JANUARY 13,%,1999 '°` ''�.' ti_4: `f _ `POUCYNUMBER:'?� wCERTinCATEEXPIRES:�;,,1�I _2 17:- f ti- CITY OF HLRIT616TWN J.BEACH BUILDING S 1SAFETY IERT PO BOX 190 14MT I NGTON BEACH "'CA 98648 ` L TF.is Is to ceftIfy that we­ha4a Issuer dWo R&e C6mperisa'ion�IrisurarSce pbtic7i in a toim appro4ed b1the Califor1lia Insurance Commissioner to the employer named below for the policy period Indicated.- THi policy Is not subject to cancellation by the Fund except upon W days' advance written notice to the employer. 3a '•W3 will also give you XgN days' advance notice should this policy be cancelled prior to Its normal expiration. -"; Tr Is certificate of Insurance is not an Insurance policy and does not amend, extend or after the coverage afforded by the pcllcles listed herein. Notwithstanding any requiremenL,term, or condition of any contract or other document with = ' •re3pect to which .this 'certificate cf:7ns6rance may-.be;Issued _o* may pertain; ;the Insurance afforded by the policies adescribed herein is subject to all tho terms,"exclusions and conditions of such policies. - AN. �, •� `` r � -mac.•-. • - mot- >. -'� r' . ..i ..}� i.•i .`.4 •x :,_'•.1:. :1:,' :AUTHORIZED REPRESENTATIVE' d'Y�''', ���: �-f - -T'"_ ` "- •;'IPREs10ENT EMPLOYER'S LIASILITYrLIMIT INCLUDING,DEFENSE COSTSi1.,zL ,000,4ht3_RER,0CCl1RREr10E. ENDORSEMENT #20+65 ENTITLED CERTIFICATE HOLDERS' NOTICE EFFECTIVE 01/13/99 i5 ATTACHED TO AND FORMS A PART OF THIS POLICY. • 1 • - • '� - j I. f • •. 4:• 1 I _ •�_• •'�ii �'i��,r,� t''t•rt:f•�f:r�'t � t ..1 � t .!'} }�rt;!r t: � •�•.• a .r.�• �•r„ •. �j � • .-•. _.. .. .,„lAS ►C ` V. Af 711�fi, GALL L+l4t De"..ty, IY=�o+=ori:eriY2 Y. • . - itY II'.ff •s- f.� r-.�t 'y': _L_•.ry'r. ti..`�:[.'.'d,L-� :v- �' .y['t.%1�v..t i �y Fe•, .y<'• :i T. f.'-"_�� :;�:s' �1 �'.-`:: - S. M1.�t± EMPLOYER - ' i. '.... i f�j�+y` k re,r4;'r.: j.�'.' a,= . r ti ti, tik, �,•f „ q -r. •'• r �.} . '�• '" Ia- `i.t ft CrL•, w t -%:. �- '� T '►."� HtlRST,.PAT S. 'At b`_,HARRidAfr','JAf+1i;5:� �.p • ._,?r :.y;y; ';sF,•.�s - DBA; ,ECbNOriiC I3EVEE.OPI tENT - SYSTEr15 436'CALLE MAYOR 2ND FL;R. .REDONDO BEACH CA 90277 v Proposal from Economic Development Systems Dated August 23,1999 {Referred to as "Exhibit All in Contract ATTACHMENT #2 Economic Development Systems Presented to Mr. Jim Lamb Project Manager City of Huntington Beach ■ Jim Harrigan and Pat Hurst Principals Economic Development Systems August 23,1999 Economic Development systems PROPOSAL FOR THE DEVELOPMENT AND IMPLEMENTATION OF A TENANT RECRUITMENT PROGRAM FOR DOWNTOWN HUNTINGTON BEACH INTRODUCTION Economic Development Systems ("EDS") is pleased to submit this proposal for professional services with respect to the above subject. It is understood that the Huntington Beach Redevelopment Agency wished to hire a retail recruitment consultant to attract new retail and restaurant tenants to the downtown area. GOALS The purpose of this Retail Recruitment Program is to establish Downtown Huntington Beach as the Business, Entertainment and Social Center -point of the Community by providing a strategy for establishing a desirable increase, upgrade and diversity in the mix of retail uses. This Plan will also capitalize on the retention of successful businesses now located in the Program Area, as well as to build upon and enhance the existing revitalization programs of the Huntington Beach Redevelopment Agency. Specific goals of the program include the following: 1. To continue to develop a realistic market trend analysis through the review and evaluation of current, available market data for the Huntington Beach trade area. 2. To continue to determine current retail market trends for "traditional" retailers, restaurateurs and entertainment uses, especially concepts that have not been established in the Huntington Beach trade area. 3. To continue to create a retail recruitment action "plan' aimed at actively involving Area landlords, existing tenants, commercial brokers, developers, investors and City management and staff. 4. To continue to recommend target niche concepts aimed at encouraging uses to compliment the existing retail businesses in the Program Area. 5. To continue to provide recommended tenant absorption direction for in -fill of retail space. Economic W Development Svstems 6. To continue to create a retail recruitment plan that provides recommendations that distinguish the Program Area from other retail already existing or planned in the greater Huntington Beach trade area. 7. To continue to address, and assign a high priority to, the integration of existing Downtown Huntington Beach Program Area's vacant spaces/buildings into the overall marketing plan, including recommendations for the buildings' opportunities and constraints from a marketing and leasing perspective. S. To continue to identify potential leasing and development sites for retail use. All recommendations will be made after consultation with City management and staff and appropriate stakeholders. 9. To continue to determine the names and locational requirements of target local, regional and national tenant types while identifying specific sites to accommodate their needs. 10. To continue to draft and implement an updated action plan for recruiting target market retailers, restaurateurs, attractions, developers and/or investors and to identify and assist in the development of the specific tools required to accomplish these tasks based on successful strategies utilized by the other 28 downtown entertainment, shopping, dining districts into which EDS has successfully introduced this Program. Development and production of brochures, maps and videos are not included in the budget presented herein. SCOPE OF WORK To achieve the above goals, the following scope of work is required: 1. Kick -Off Meeting with City management and staff to discuss assistance, goals and timetables for the year. 2. Review provided inventory within the Program Area and review area retail uses. 3. Analyze existing retail sales tax data for the Program Area. (It is understood that EDS will be provided by the Agency/Task Force with a detailed itemization of sales tax information for all uses within the Program Area to be analyzed on a sonfidgntial basis.) 4. Review provided listings of competition in key shopping areas and centers that provide competitive shopping, dining and/or entertainment on an ongoing basis. K ' ECOn0mic UevelopmcM Systems _ry 5. Prepare an updated concise, demographic overviciv of the greater trade area residents and, if possible, include tourists, visitors and daytime "employment" population. 6. Continue to contact knowledgeable real estate and retail management and/or leasing contacts who are familiar with Program Area and its competition. 7. Continue to research select local, regional and national retailers. 8. Continue to recommend the highest and best use for Program Area's vacant spaces and development sites as they become available. 9. Continue to create and implement a marketing/promotions action plan for recruiting the target retailers. This will include direct contact with potential tenants; investors, and developers and / or their respective brokers; representatives; production of specific market information per tenant request; the distribution of an updated Retail Vacancy Roster that has been compiled, maintained and published by City staff; ongoing effort to expand the original prospective tenant roster; coordinate tours and meetings with potential tenants and/or developers; describe all economic incentives; and, assist throughout negotiation/occupancy as necessary. APPROACH TO AREA PROh'[QTjO�IIANTI-FAVORITISM CONCERNS It is understood that the Consultant would not be actively representing specific leasable properties in the Program Area in lease transactions, but would represent the area as a whole. Tenant referrals will be made directly to the leasing agents for the properties involved. All prospective tenants will be provided with information which specifically addresses their individual space and area requirements. The tenant will then select and eliminate properties as they believe necessary. (on -going maintenance and update of Retail Vacancy Roster to be provided by Agency staff). Consultant shall respond accordingly to those properties of interest, via the listing broker, and will then monitor and participate in the transaction as required. It has been our experience that dialogue with "hot prospects" must be on an ongoing basis to insure that if the tenant's first choice does not work out, the second alternative is then pursued. It is also highly probable that the Consultant will contact and recruit tenants that are not represented by an exclusive broker. Upon request by the respective tenant, Consultant shall provide a list of at least three Huntington Beach area commercial brokers to represent said tenant. Tenant shall be fully responsible for further selection of a specific broker. Should there be several area brokers who should be presented as candidates, then a full listing can be rotated on a case -by -case basis. 3 Economic Development Systems It is also understood that any tenants which do not select the Program Area will be encouraged to took elsewhere in the City for appropriate locations. PROJECT TEAM MEMBERS Jim Harrigan and Pat Hurst, Principals of Economic Development Systems will be personally responsible for conducting and supervising the production of the assignment. Their resume/ professional qualifications are attached. FEE SCHEDULE =October-3,1999 through September 30,�2000 EDS 1999 rates for this assignment are as follows: $170.00 per hour for Principal billing rate; Senior Consultant rate, $155 per hour; and, if needed, the hourly billing rate for Senior Analyst will be $105 per hour and for Administrative / Technical support, $65 per hour. It is projected that the hourly mix for this assignment will be 4 hours of Principal time per week and six hours of Senior Consultant time per week. This mix should average the hourly rate at approximately $160 per hour throughout the assignment. EXPENSES The City shall reimburse expenses (billed at 110% and substantiated by monthly receipts) for use by Economic Development Systems in directly related job expenses, including restaurant research and/or promoting the Program Areas to potential tenants, investors and/or developers. Use of the funds may include, but not limited to, air faxes; hotels; ground transportation/mileage; telephone calls; delivery; graphics and printing; entertainment/meals; meals while traveling; postage; entertainment; the pro- ration, with other client Agencies/Cities/ Associations, of costs for regional and national retail conferences (e.g., ICSC Conferences; Trade Conventions, etc.) and travel/hotel rooms for same. The maximum amount of these expenses will not exceed $5,000.00 for the twelve month contract. TOTAL FEES AND EXPENSES Principal: $170 x 4 hours weekly x 52 weeks = $ 35,360.00 Senior Consultant: $155 x 6 hours weekly x 52 weeks = $ 48,360.00 Expenses: Flat rate of $5,000 $ 1Q00.OQ Total Fees and Expenses: $ 88,720.00 4 Economic Development Systems M FEE SCHEDULE - Octebcr 1, 2000 through_Sgptember 30, 200I EDS 2000 rates for this assignment are as follows: $175.00 per hour for Principal billing rate, Senior Consultant rate, $160 per hour; and, if needed, the hourly billing rate for Senior Analyst will be S105 per hour and for Administrative / Technical support, $65 per hour. It is projected that the hourly mix for this assignment will be 4 hours of Principal time per week and six hours of Senior Consultant time per week. This mix should average the hourly rate at approximately $166 per hour throughout the assignment. . EXPENSES The City shall reimburse expenses (billed at 110% and substantiated by monthly receipts) for use by Economic Development Systems in directly related job expenses, including restaurant research and/or promoting the Program Areas to potential tenants, investors and/or developers. Use of the funds may include, but not limited to, air fares; hotels; ground transportation/mileage; telephone calls; delivery; graphics and printing; entertainment/meals; meals while traveling; postage; entertainment; the pro- ration, with other client Agencies/Cities/ Associations, of costs for regional and national retail conferences (e.g., 1CSC Conferences; Trade Conventions, etc.) and travel/hotel rooms for same. The maximum amount of these expenses will not exceed $5,000.00 for the twelve month contract. Principal: $175 x 4 hours weekly x 52 weeks w $ 36,400.00 Senior Consultant: $160 x 6 hours weekly x 52 weeks = $ 49,920.00 Expenses: Flat rate of $5,000 $ 5,000.00 Total Fees and Expenses: $ 91,320.00 TIME ALLOCATION As of today, August 23, 1999, the Principal and Senior Consultant will allocate the noted hourly allotment of time for this assignment and can schedule a commencement of services for October 1,1999. (Please note that as outstanding proposals/ contracts are executed, this time commitment and commencement date may possibly be altered or delayed.) 5 Economic Development Systems BILLING ARRANGEMENTS Monthly invoices will be submitted approximately on the first of each month. Payment shall be due within thirty (30) days of the date of the billing statement. In the event payment is not received within said thirty (30) day period, it is the policy of the company to cease work until such time that the billings are paid in full. Amounts outstanding thirty (30) days or more from the date of the billing statement will be charged a rebilling amount of two percent (2%) per month (24% per annum). Should this assignment be abandoned or terminated for any reason whatsoever during the progress of the work, billings will be rendered up to the date of said abandonment or termination and shall immediately become due and payable. In the event of any.dispute relative to this agreement, the prevailing party shall be entitled to attorney's fees and costs. This agreement shall be construed, interpreted, and governed for any and all purposes by the laws of the State of California, and any action on this assignment shall be commenced in the County of Los Angeles, State of California. FIRM QUALIFICATIONS Economic Development Systems ("EDS"), a general partnership based in Redondo Beach, California, provides consulting services to city governments, redevelopment agencies, Business Improvement Districts (BIDS), real estate developers, institutional investors, land owners, and other consulting firms. A staff of experienced professionals with backgrounds in real estate, retail, marketing, management and research form the core of EDS. Economic Development Systems, a partnership, founded in 1991 by Pat S. Hurst, and formalized in 1993 when co -principal James L. (Jim) Harrigan joined the firm, provides retail recruitment services focusing on: • Market Assessment • Site Selection Criteria • Tenant Recruitment • Tenant Negotiations • User Profiles • Plan Implementation • Strategic Plans • Ongoing General Consultation These services compliment traditional demographic, census and market statistic studies provided by firms such as Economics Research Associates, Seifel Associates, etc. To help clients better understand their markets and their prospective tenants, EDS examines and analyzes the relevant retail, demographic, and social trends as well as factors that impact a project or an area and then recruit the specific tenants to fill those needs by working closely with City staff, landlords, commercial real estate firms, and local business owners. C Economic Development Systems EDS provides a coordinated retail recruitment program to prospective businesses currently located outside a given market area by providing outreach to local, regional and national brokers who represent the targeted retailers. The campaign includes promotion of all applicable economic incentives available to retailers such as the Enterprise Zone, Revitalization Zone, Loan Programs and/or other financial incentives. EDS' primary responsibility is to reach retailers by personal contact and to match such retailers with specific locations that can accommodate their needs. Upon confirmation of the prospective tenant's interest, EDS assists in identifying various leasing and financing strategies that will culminate in a commitment on the retailer's behalf to the market -area. This includes proposal analysis, lease oversight and constant monitoring of the transaction. Economic Development Systems is/has providing consulting services for the following, as an example, clients/associates: • City of Long Beach • City of Pasadena • City of Santa Paula • City of Culver City • City of San Jose • City of Santa Ana • City of Fullerton • City of Poway • City of Palmdale • City of Escondido • City of Azusa • City of Lawndale CERTIFICATIONS • City of Los Angeles • City of Hermosa Beach • City of Rialto • City of Riverside • City of Huntington Beach • Asset Strategies • The Arroyo Group • Gensler • Economic Research Associates • Hyett/Palma Economic Development Systems is certified by the State of California, Division of Civil Rights for participation in Federally and State funded contracts as a woman -owned and operated small business (Certification Number: CT-023244). F7 Economic Development Systems FOUR PRO IIX PROiECIS 1. Huntington Beach - Downtown Area EDS is providing services to the City of Huntington Beach Redevelopment Agency for the development of a retail recruitment campaign to bring new regional and national retailers into the internationally recognized "Surf City". The scope of work includes not only establishing a data bank of the potential tenants, but forwarding market information, scheduling tours and meetings with key decision makers representing focus tenants. Contact: Mr. David Biggs Director of Economic Development City of Huntington Beach 2000 Main Street Huntington Beach, California 92648 (714) 536-5470 Date of Service: April 1997 - Present Services Delivered: An expanding portfolio of tenants including Kincaids, California Pizza, Yujean Kang and Culinary Adventures as well as Laemmle Art Cinema who are interested in locations in the downtown area. Broker and landlord outreach program continues on a regular basis. 2. City of Long Beach - Various Sub -Markets As a Retail Recruitment Consultant since 1991 for the City of Long Beach (population 430,000), EDS has worked closely with the City staff in the revitalization of the downtown shopping, restaurant and entertainment district. The program includes promoting not only specific economic incentives to key retailers, but providing additional support to property owners and commercial brokers as well. Additional support includes expansion programs for existing retailers, profiles of existing properties for lease and/or sale and demographic profile compilation for specific tenant recruitment. EDS is responsible for new store Iocations for Crate & Barrel, Z Gallerie, Limited Express/ Bath & Body Works, Trilusa Restaurant, Chicago for Ribs, Starbuck's, Good Guys, Tower Records, Barnes & Noble, and many others. 9 Economic Development Systems Other Long Beach area Retail Recruitment projects include: A 100-acre Power/Entertainment Center proposed at the 605 Freeway and Carson Boulevard, featuring a multi -screen Edwards Cinema, restaurants, shopping, etc.; revitalization of the Marina Pacifica Mall on Pacific Coast Highway, including Barnes & Noble and the WOW! store (Good Guys/Tower Records); a Redevelopment City Revitalization program for Los Altos Shopping Center (45 acres), including new retailers such. as Bristol Farms and Circuit City; the Bixby Knolls Community Revitalization Area, consisting of a neighborhood shopping center including Orchard Supply and a new Von's grocery store, as well as streetfront retail and commercial districts; and, Queensway Bay, a 300-acre waterfront destination project featuring a new aquarium Which opened in June, 1998. Contact: Ms. Susan F. Shick Executive Director Community Development Department City of Long Beach 333 West Ocean, 3rd Floor Long Beach, California 90802 (562) 570-6370 Date of Service: 1991 - Present Services Delivered: • Addition of 200,000 square feet of new retail to Pine Avenue; • Revitalization of two neighborhood shopping centers by recruiting Bristol Farms, Borders Books and Music, Sears (to replace Broadway) at Los Altos, and Barnes & Noble and AMC Theater expansion at Marina Pacifica; • Introduction of IMAX Theater for Queensway Bay; and a culinary academy for the Downtown area; • Production/coordination of four city videos, three brochures, and numerous slide shows and promotional packages for recruitment of new retail. 9 C,conomic Development systems 3. City of Pasadena - Old PasadenalPla yhouse District The purpose in hiring EDS for the Old Pasadena retail district was to create a "proactive' program to address tenant mix issues in the remaining build -out of the district. This effort includes communication and cooperation with property owners, commercial brokers, developers, existing retailers, city staff and elected officials. While the Old Pasadena retail district is a very well known popular destination, the retail recruitment effort focuses on striking a balance among the various categories of retail while maintaining .the historic character of the district. In addition, a list of "key tenants," established and based upon individual tenant requiremerAs, space availability, etc., was used for specific tenant recruitment efforts. Supplemental information such as area maps, property profiles, vacancy rosters, etc. have been developed to be included in the promotional package. Tenants such as The Cheesecake Factory, Crate & Barrel Home Store, Pottery Barn, Saks Main Street Store, Earthsake and Buca de Beppo, to name a few, are tenants targeted by EDS for the District. Contact: Marsha V. Rood, AICP Department Operations Administrator Housing and Development Department City of Pasadena 100 North Garfield Avenue Pasadena, California 91109-7215 (626) 744-4653 Date of Service: December 1994 - present Services Delivered: • Addition of 137,000 square feet to the Old Pasadena Marketplace. Active tenants such as The Galleries of Neiman Marcus, Saks Men's Store, Villeroy & Boch, Ralph Lauren Shops, etc., total over 350,000 square feet; and • Production and coordination of a retail recruitment package including demographics, maps, site plans, etc. 10 Economic Development Systems 4. City of Los Angeles - Westwood Village EDS provided services to Westwood Village for the development of a retail recruitment campaign to bring new regional and national retailers into what was once "the" urban streetfront environment in Southern California. The scope of work included not only establishing a data bank of the 600,000 square feet of properties, but developing recruitment brochures, color maps and demographic information to be used in the retail attraction effort. Contact: Mr. Robert Walsh Executive Director Westwood Village Community Alliance 1081 Westwood Boulevard, Suite 218 Los Angeles, California 90024 (310) 208-198.4 Date of Service: January 1996 - August 1999 Services Delivered: • Recruitment package including a four -page, four-color brochure, retail recruitment map, and 9 x 12 presentation folders, as well as a project logo and letterhead package, and, • A portfolio of restaurateurs, including Mi Piaci, Palamino, Mr. Chow, Kincaids, California Pizza Kitchen and Wolfgang Puck restaurants; Kings Fish House, P.F. Chang`s and Border Grill have ar are locating into the Village. I!LRINCIPAL QLLA-LIFICATIQM Pat S. Hurst Principal Pat S. Hurst has more than fifteen years of diverse experience in all phases of commercial real estate in the Greater Los Angeles area including marketing, promotion, leasing, tenant recruitment, business development, financial analysis, construction, etc. She holds a Bachelor of Science Degree from Tennessee Technological University and was a Dean's List Honors Recipient. Current memberships include The International Council of Shopping Centers, Urban Land Institute, and California Association for Local Economic Development. 11 Economic Devetopmesit Systems While Ms. Hurst's focus has been retail development for the past few years, her experience in both corporate and retail recruitment has strengthened her skills in market research and economic development. During her career in corporate real estate, she negotiated over 1.5 million square feet of lease transactions. As Leasing Coordinator for the development division of Cushman Realty Corporation, she negotiated more than 500,000 square feet of leases with tenants such as Disney Channel and Walt Disney Pictures, Teledyne, Wells Fargo Bank, Mobil Oil, Polygram Records and Warner Brothers. Prior to her years at Cushman Realty Corporation, Ms. Hurst worked with Reliance Development Company as Leasing Representative for the 1000 Wilshire Boulevard Building in Downtown Los Angeles axed the CIGNA Health Plan building located at 505 North Brand in Glendale. As a Leasing Specialist with American Trading Real Estate Company, she worked on the promotional campaign for the 880,000 square foot Glendale Square project planned for the immediate commercial district of Glendale. She also served as Vice President of Marketing for Howard Development Corporation in Glendale, and Project Manager for Mitchell Development in Sherman Oaks. As a result of her working knowledge of the commercial office and retail real estate markets, Ms. Hurst provides her clients with experience ranging from the marketing of individual retail and office projects, to assisting with the revitalization of business and commercial districts throughout the Greater Los Angeles area. James L. Harrigan Principal For the past twenty-two years, Jim Harrigan has been involved as a broker and supervising manager in over 1,800 separate commercial lease or sale transactions for a total consideration in excess of $1.25 billion. Before joining Economic Development Systems with Pat S. Hurst in 1993, Jim recruited, hired, trained, and counseled over 105 of the top retail, office, industrial, and investment brokers in the greater Southern California commercial market. During this time, Jim assisted in creating and closing some of the areas largest real estate deals for three diverse commercial real estate companies: Ashwill-Burke and Company (1978-1992), Charles Dunn Company (1982-1990) and The Goodglick Company (1990-1993). From a 1978 broker in the San Fernando Valley for Ashwill-Burke & Company, Jim was promoted to Sales Manager of Ashwilt-Burke's San Diego offices. In 1982, as Regional Manager, he formed the Industrial Division of the Charles Dunn Company and in 1987, he started the Retail Division of the Dunn Company's Westside office. As Vice President/ General Manager of the Goodglick Company, Jim led a group of U Economic Development SYsL611s mature, highly successful industrial brokers in both the LAX and Long Beach locations. Following his recruitment by Union Oil in 1969, while stilt a student at Loyola University of Los Angeles, Jim was requested to report to UNOCAL's marketing headquarters in Chicago following his graduation. For three years he underwent a highly sophisticated training program in sales and marketing management. He was then sent to corporate headquarters in Los Angeles, where he held eight varied and increasingly more responsible positions until his entry into real estate brokerage during 1978. With this varied and strong management background Jim Harrigan, as Principal of Economic Development Systems, brings over 25 years of marketing success to the Southern California marketplace. His actual experience in commercial and industrial real estate spans the entire six county area of Southern Califomia. His working knowledge and relationships with retailers and commercial real estate brokers throughout this market is second to none. Judy M. Miller Senior Consultant With over eleven years of real estate brokerage experience, Judy Miller has been involved in many aspects of commercial real estate assisting both landlords and tenant with retail, commercial, industrial and investment transactions. During her tenure at EDS, she has been directly involved in the Retail Recruitment efforts for Old Pasadena, Playhouse District, Studio District in Culver City, Bixby Knolls in - Long Beach and Downtown Huntington Beach area. Prior to joining EDS, she specialized in tenant representation and commercial leasing in the San Fernando Valley and enjoyed helping her client's achieve their objectives. Judy worked with Beitler Commercial Realty (1988-1994) and completed training at Coldwell Banker Real Estate Services (1987-1988). Currently she is a member of the International Council of Shopping Centers and maintains a Real Estate Sales Person License in the State of California. Judy holds a Bachelor of Art Degree from University of California, Los Angeles and a Masters of Business Administration also from University of California, Los Angeles. Her MBA studies emphasized marketing and finance with course work in market research and strategic studies. After graduating from business school, Judy was recruited by Arthur Young & Company, now Ernst & Young, an international accounting firm. A California -licensed CPA, Judy worked as a Senior Tax Specialist and in addition to client responsibilities was active in new business development and recruiting for the firm. 13 � f Economic Development Systems �.O. Judy brings a varied background to her work as a consultant with EDS. She takes pride in her hard work and persistence as well as her network of retail and restaurant tenants and commercial real estate brokers throughout Southern California. LiENT REFERENCES City of Long Beach Susan F. Shick Director of Community Development City of Long Beach 333 West Ocean Boulevard, 3rd Floor Long Beach, California 90802 (562) 570-6570 Barbara Kaiser Redevelopment Manager City of Long Beach 333 West Ocean Boulevard, 3rd Floor Long Beach, California 90802 (562) 570-6340 Gerald R. Miller Deputy City Manager City of Long Beach 333 West Ocean Boulevard, 13th Floor Long Beach, California 90802 (562) 570-6916 Amy Bodek Redevelopment Administrator City of Long Beach 333 West Ocean Boulevard, 3rd Floor Long Beach, California 90802 (562) 570-6037 City of San Jose Frank Taylor Executive Director The Redevelopment Agency of the City of San Jose 50 West San Fernando Street, Suite 1100 San Jose, California 95113 (408) 277-4744 Francine Principe Senior Development Officer The Redevelopment Agency of the City of San Jose 50 West San Fernando Street, Suite 900 San Jose, California 93113 (408) 2774744 City of Pasadena Marsha V. Rood, AICP Development Administrator Housing and Development Department City of Pasadena 100 North Garfield Avenue Pasadena, California 91109-7215 (626) 744-4653 14 Erlinda Romo Business District Coordinator Housing and Development Department City of Pasadena 100 North Garfield Avenue Pasadena, California 91109-7215 (626) 744-4653 r Economic Development systems City of Culver City Mark H. Winogrond Chief Administrative Officer City of Culver City 9770 Culver Boulevard, 3rd Floor Culver City, California 90232-0507 (310) 253-6001 Miriam Mack Redevelopment Administrator City of Culver City 9770 Culver Boulevard, 3rd Floor Culver City, California 90232-0507 (310) 253-5762 CONSULTANT_ REFERENCES David A. Wilcox, AICP Senior Vice President Economics Research Associates 10990 Wilshire Boulevard, Suite 1600 Los Angeles, California 90024 (310) 477-9585 Steve Nelson Senior Broker CB Richard Ellis Allan D. Kotin Principal PCR Kotin 12100 Wilshire Boulevard, Suite 1050 Los Angeles, California 90025 (310) 820-0900 BROKER REFERENCES 330 North Brand Boulevard, Suite 160 Glendale, California 91203 (818) 502-6726 Richard Rizika Senior Broker CB Richard Ellis 990 West 190th Street, Suite 100 Torrance, California 90502 (310) 516-2338 Greg Whitney Vice -President CB Richard Ellis 15303 Ventura Boulevard, Suite 200 Sherman Oaks, California 91403 (818) 907-4704 15 Arne Freeman (Crate & Barrel, The Limited) Principal Coast Commercial Brokerage 438 Carrol Canal Venice, California 90291 (310) 822-0309 Brian Tracy Managing Partner Net Lease Properties 225 South Sepulveda, Suite 280 Manhattan Beach, California 90266 (310) 376-2700 Kyle Kavanaugh President Main and Main, Inc. 4100 Newport Place, Suite 660 Newport Beach, California (949) 476-2700 r f � Economic Development Systems _ BROKER REFERENCES - continued Linda Crowley Leslie Webster President Principal Urban Street Advisors Metropolitan Pacific 4482 Barrana Parkway, Suite 150-161 100 Wilshire Boulevard, Suite 900 Irvine, California 92604 Santa Monica, California 90401 (949) 733-3560 (310) 576-1252 INVESTOR - DEVELOPER REFERENCES Shaul Kuba Bill Stone Principal - Vice -President of Management CIM Group, Inc. DDR Oliver McMillan 10960 Wilshire Boulevard, Suite 500 4350 Executive Drive, Suite 300 Los Angeles, California San Diego, California 92121 (310) 966-1710 (619) 597-2111 W ATTACHMENTS tM t TERNAT.tONAL'-C"sERTEM@ER;`n;&'87 Crate & Barrel was one of the first of several retailers to respond to a successful drive by municipal officials to entice businesses Into (rang Beach, Califs depressed downtown. Public -private cooperation is vital for urban renewal F By Melanie Conty I LONG BEACH, Calif. — In the early 1990s, the U.S. Navy pulled up anchors here and relocated to San Diego, taking its sailors and their spending power with it. Vriithout patrons, the various Navy haunts soot} left as well, and Pine Avenue, once the thro-sbing pulse of this vibrant port town, was left I) die. e It as the saying goes, that was then. The! a days the avenue is reclaiming its power and making a splash, which many hope will soon ripple to other parts of the city. '�bere was a decision to take a look and to reim est in Pine Avenue, and make that sort of the core and the heart of the city again," said Barbara A. Kaiser, redevelopment bureau maniger of the City of Long Beach. 'It was prett- much rundown, and there was hardly any r Mail left on the street' So city officials devised a 12-point redevel- opm,'v program in which they cleaned up the s reets and alleys and built offices, resi- denti,l apartments and hotels. They placed plant -.rs around pedestrian areas, set up hot dog and cappuccino vendors and began a farmers market and arts -and -crafts fair. 11-ey provided uniformed guides to walk arour d and help visitors find their way. pro- vidins; them with radio contact with the po- lice. should the need arise. But the crowning glory, the driving force that officials say has pumped blood back into Pine Avenue's drained %eins, is the retail. restaurant and entertainment facilities brought by Economic Development Systems {EDS}, a Rancho Palos Verdes. Calif. -based te- tail consultancy hired by the city. Led by Pat S. Hurst and ,Jim Harrigan, both veterans of commercial brokerage, EDS has helped make Pine Avenue the Main Street of downtown Long Beach. 'Here you've got 350 days of nice weather a year,' Nis. Hurst said, describing the area's strong lure. '[Visitors) have got 1 I mites of sandy beaches, they've got 2.500 hotel rooms, they're got great views of the ocean, great views of the Queen Mary. and they have ab- solutely nowhere to go to spend any money In addition, she said Ions; Beach has 450,000 residents. The challenge was to attract retail to the budding, but still desolate, fine Avenue. The city earmarked E2 million for a Key Tenant Loan Program to help recruit national retail- ers and lower their risk whi'e Pine Avenue re- gained strength. Key retailers could use the fund to set up shop along Pine Avenue, and would only have to repay the money it they left within a certain minimum period. For example. a business that borrowed $400,1; W over a I5-year term would owe nothing it it remained on Pine Avenue for at least l5years.according tothe California Re- development Association. Businesses were considered 'key' only it they would enhance the avenue's reputation, serving to lure other businesses. 'It was really what you could refer to as seed money because it was a risky area, the. district had no reputation, they had a down- town area that had a reputation for crime' Nis. Hurst said. 'So we really had a lot of neg- ative images to start with' But EDS helped. prove that the down- town's daunting image quite belied its true character. `Plus' Nis. Hurst added. 'a lot of people in the Los Angeles basin hadn't been to Bong Beach in 20 years ... and so every- body's idea of downtown Long Beach was what it used to be in the 1960s' Officials used the Key Tenant Loan Pro- gram. long Beach's tourist and business at- tractions and the city's redevelopment efforts to sell the area to retail, restaurants and en- tertainment. Z Gallerie, an eclectic home fur- nishings store owned by the risk -taking Joe Zeiden, was one of the first to arrive, fol- lowed by Crate & Barrel. Arnie Freeman, Crate & Barrel's real es- tate broker, is now a staunch EDS supporter. 'I was impressed with the effort that the city was making' Nfr. Freeman said. '1 think that one of the things that was really good was that Long Beach was sophisticated enough to hire professional people to create a successful street' Now limited Express, Bath &, Body Ubrks and Siarbucks are among the businesses that . line a revitalized three -block —and growing — stretch. Local restaurants that limped through the dry times are thriving. Altogether, his. Hurst said, EDS has brought a total of about 200.000 square feet of retail tenants to the avenue. "But it's still ongoing,' Mr. Harrigan as- serted.'Retail regenerates itself and it's con- stant. That's why we have our ear to the ground. not only on Pine Avenue, but also other areas, because if we were to drop the ball, that area could go down quickly Although the avenue now bustles almost every day and night, officials hope business will continue to improve as more retail, restaurant and entertainment continues to enter the scene. Pine Square, a mixed -use development with a 16-screen AM1C theater complex. about 160 residential units and 7,000 square feet of ground floor retail, helps ensure evening and weekend traffic. 'It probably took a good five years before it all sort of came together.' Nis. Kaiser said. 'It's still evolving quite a bit. One of the things were focusing on is continuing to add to that' The city has continued its contract with i f' EDS, and together they hope to expand the a%enue's rebounding vitality. A new aquarium is slated to open near the avenue next summer which, surrounded by about 400.000 square feet of additional re- tail and restaurants, could attract millions of tcurists per year, his. Kaiser said. Pine Av- enue, which runs to the harbor, will serve as the backbone connecting the areas. Since tong Beach, their first venture, his. H irst and Mr. Harrigan have used retail to help revitalize downtowns in more than 20 cities, including Santa Ana and Pasadena. C.1lif. The hands-on principals study an area and determine its selling points, then use those points to attract retail, restaurant and entertainment. Acting as a bridge between the municipality and new businesses, their goal is to bring to a site a mix of retailers com- posed of 25 ro national, 25% regional and 50% local. That's what makes a district unique. Mr. H irrigan said. "We don't want to put another mall up on a street front. We want to have the Iocal flavor that probably was there before, and we want to expand upon that. One of the first things EDS does is assess the area and available property, and under- stand a municipality's needs. 'I mean, it doesn't do any good to call on Nordstrom if you don't have anywhere to put them, his. Hurst said. While under contract with a municipality, EDS will not work for a nearby, competing area, to avoid any conflicts of interest. It charges by the hour, and fees vary according to assignment. A recent seven -month con- tract in the bay area will reach about $62,000, Nis. Hurst said, a price that is paid back sev- eral times over from sales tax revenue and added jobs. 'this fee includes everything from program design and research to mar- keting the area to retailers. Nis. Hurst and Mr. Harrigan say their pres- ence offers a silent premise to retailers who may otherwise hold off from settling in such emerging areas. 'City governments have power. Als.Hurst said. 'if they're hired us, that means, also to a retailer, there's a garr.e plan in mind, that they're not going to be the only ones sitting there for 10 years, that t.'tey are part of a big- ger, grander scheme.' The scheme's success depends on every- one patiently working together toward revi- talization, sometimes taking risks and some- times taking losses. A revitalization plan can take years to show results. 'It's similar to making a movie,' said Mr. Freeman of Crate & Barrel. "It's a collabora- tion of a lot of folks, all pushing the same di- rection. That's how the movie gets made. "this is no different' The process takes so long in part because people get used to frequenting certain areas, and avoiding others. To change people's habit patterns takes a while; W. Freeman said. There has to be some kind of carrot ... and that's what we're providing. We're providing some of those car- rots." Ironically, most retailers EDS brings to downtowns are those typically found in malls, but who are looking to escape restric- tions and common area maintenance charges, A1s. Hurst said. Alain Street Is, after all, retail's mighty an- cestor, according to shopping center history. And especially in such a temperate climate as California, why not spend time outdoors? "You know, we've been mall-ized' Atr. Freeman observed. '[But] revitalizing down- towns is just as important as keeping the mall business healthy' 0 Reprinted with permission by Shopping Centers Today Magazine E-�,'ENUE PIN.RETAIL SALES .. rt,_oaw�: oto dTurat,�.(t'q Eli R;F x . . . . . . . . . . . . • NO 2600 100":" ............ I'A N R,RA $9648O�O ,69oot4 S,i ✓ Y. .IR .TRM1IR R tst 4 try fuJ _:N MIN, 11) a Ilk im m ATTACHMENT "A" CITY OF LONG BEACH COMPLETED TRANSACTIONS (Partial List) Tenant Z Gallerie Crate & Barrel Rock Bottom Brewery The Madison Restaurant Chicago For Ribs Pasta Presto Eclypse Restaurant Limited Express Bath & Body Works Art of Hands Gallery Vons Expansion Starbucks (2) Tikal Restaurant Cha Cha Cha Restaurant King Crab Lounge Circuit City Bristol Farms Good Guys Barnes & Noble Ross Dress For Less Golds Gym Orchard Supply Sub -Total: Office Space: Levi Strauss Regional Sales Office DeVry Institute Auto Club of Southern California Sub -Total: TOTAL: May '1989 Square Footage 20,000 13,000 10,000 17,000 3,000 3,000 6,200 5,800 4,500 3,000 80,000 2,500 5,000 8,000 1,500 40,000 25,000 40,000 30,000 40,000 35,000 60,000 460,000 10,000 100,000 100,000 210,000 670,000 It % U ATTACHMENT "B" CITY OF LONG BEACH ACTIVElPROPOSED TRANSACTIONS (Partial List) Tenant Staples Trader Joe's (2 locations) Gelsons Barnes & Noble Cheesecake Factory Cost Plus IMAX Theater McCormick & Schmick Restaurant Wal-Mart Culinary Academy Sur La Table Restoration Hardware Urban Outfitters The Gap Old Navy Petco Hollywood Video Steinmart Ralph's Market Lucky's Market TOTAL: May 1999 Square Footage 25,000 15,000 30,000 25,000 10,000 20,000 35,000 9,000 130,000 30,000 6,500 5,000 10,000 8,000 25,000 10,000 6,500 38,000 60,000 60,000 558,000 • ATTACHMENT "C" CITY OF PASADENA COMPLETED TRANSACTIONS "Old Pasadena" (Partial List) Tenant Saks Fifth Avenue - Main Street Crate & Barrel Home Store Pottery Barn Restoration Hardware Buca Di Beppo Jerry's Deli Earthsake Cheesecake Factory Sur La Table TOTAL: Square Footage 50,000 35,000 15,000 5,000 7,000 5,000 4,000 10,000 6,000 137,000 Note: Currently over 250,000 square feet of Active Prospects unlisted. � � r May 1999 CONFIDENTIAL ATTACHMENT "D" DOWNTOWN HUNTINGTON BEACH ACTNE{PROPOSED TRANSACTIONS (Partial List) Prospective Tenant Square Footage Kincaids Restaurant 10,000 Laemmle Theater 25,000 T. S. Restaurants 10,000 California Pizza Kitchen 5,000 Yujean Kang Restaurant 3,500 Pit Fire Pizza 3,500 Panda Express 2,000 Urban Outfitters 10,000 Z Gallerie 10,000 Timbuktu Travel Shop 5,000 Buca de Beppo 6,000 Earthsake 8,000 University Restaurant Group 8,000 Aiegria Tapas Bar 3,000 Maui Beach Cafe 7,000 Sagebrush Cantina 10,000 Gordon Biersch 7,000 E & 0 Trading Co. 8,000 Jekyl & Hyde 10,000 Tsunami Sushi 4,000 Gelsons Market 25,000 Wild Oats 10,000 Champagne 3,500 Comer Bakery 3,500 Culinary Adventures 7,000 TOTAL: 204,000 r [CITY. >l�4 OF HUNTINGTON BEACH .� INTER -DEPARTMENT COMMUNICATION HUNTNGTON MC" Connie Brockway, City Clerk Office of the City Clerk ►' ti . r To:, Date:_ 2Meeting Date: O— ri Agenda Item: Ann geed City Council Agenda Items: The City Clerk's Office is unable to proceed with the execution of the attached Agenda Item due to the following requirements that have not been met. %Vhen your Agenda Item is ready to resubmit, please return to: Pa4Z4Lpkus, Management Assistant, City Administrator's Office. t~ 141--c 0 1. Signature(s) Needed A On RCA B On Agreement C Other 2. Attachments A Missing B Not identified C Other ' 3. Exhibits A Missing B Not identified C Other 4. Insurance Certificate (Proof Of Insurance) A Not attached R Not approved by City Attorney's Office C Signed form notifying City Clcrk that department will be responsible forobtaining insurance certificate on this item. (Sce form attached) 7 s !�� �".. s, �..�, /F /� f , fill r1 r i a,, .., n , N , r Ze A 1- 5. Wording On Request For Council Action (RCA) Unclear A Recommended Action on RCA not complete R Clarification needed on RCA C Other 6. City Attorney Approval Required 7. Agreement Needs To Be Changed A Page No. r S. Other G perKU`nadVcrw z See .LJON• 0 X4riVT7L- c E�10-74 F i s j/C/ " CERTIFICA�- SMALL CONS 4v F INSURANCE-C64 ERAGE OPTION II f ���TS CANTS PROFESSIONAL LIABILITY PROGRAM PRODUCER PUBLIC ENTITY (ADDITIONAL INSURED) AOY Risk Services, Inc., of Northern California Insurance Services Big Independent Cities Excess Pool One Market, Spear Tower, Suite 2100 City of Huntington Beach San Francisco, CA. 94105 • (415) 543-9360 NAMED MSURED (EVENT HOLDER): EVENT INFORMATION: Econaaiic Development System Type: SCOPE 436 Calle Mayor Class' VI Redondo Beach, CA 90277 Date(s): 10/1/99 ;- 9/30/2000 Project Description: Tenant recruitment for downtown area Name of Project: Downtown/Pier area revita Premium: $1, 622.00 Additional Fees and Taxes S 5 -34 & $ 33.66 This is to certify that the policies of insurance listed below have been issued to the insured named above for the policy period indicated. Notwithstanding any requirements, terms or conditions of any contract or other document with respect to which this certificate may be issued or may pertain, the insurance afforded by the policies described herein is subject to all the terms, exclusions and conditions of such policies. INSURANCE CARRIER Evanston Insurance Company MASTER POLICY NUMBER: TBD MASTER POLICY DATES: EFFECTIVE: iULY 1,1999 EXPIRATION: MY 1, 2000 12,01 a.m. Pacific Standard Time 12:01 am. Pacific Standard Time POFESSIONAL LIABR I7Y General Aggregate Liability $2,000,000 Per each project or consulting contract Each Occurrence Limit $1,000,000 Deductible: Per Claim $ S00 Coverage is primary and not contributing with any insurance maintained by an additional insured. The limits of insurance apply separately to each event insured by this policy as if a separate policy of insurance has been issued for that event. It is understood and agreed that the Certificate Holder is an Additional Insured, but only as respects its liability arising out of the activities of the Named Insured. OTHER ADDITIONAL INSURED OTHER ADDITIONAL INSURED CANCELLATION: Should the above described policy Kjanceled bef r the expiration daA thereof, the issuing company will mail 30 days written notice tLffj62 rti a of tionai ' eds listed. DATE ISSUED: October 1, 1999 izati 06/25/99 7LZT APnXAT10N PACKAGE -3- Aon Risk Services CITY OF HUIvTNGTON BEACH APPLICATION FOR INSURANCE REQUIREMENTS WAIVER OR MODIFICATION 1. Namefride/Department of Requesting Staff Member) l nLu"10 1N 0', JV) Id Cc or— 0 em EL- 2. Date of Request Zq 119 3. Name of Contractor/Permittee2.o hor,ic 4. Description of work to be performed 1 FY\C,.. y 2E C-eu ^ Al s r O �.0 V w+.tv r•,T �,r O f b S. Length of Contract _ , 1 `f ✓- 6. Type of Insurance Waiver or Modification Requested: L^34, Vim, OF 13 SOO do' Auc.Tt-1 t' (a) Limits: - (b) Coverage 7. Reason for Request for Waiver or Reduction of Limits Q C S. Identify the risks to the City if this request for waiver or modification is granted "o LbW -hsy— WDO-xc 1hOlutzn Department Head 6 (This section to be completed by the Risk Manager) Recommendation: e Approve Deny Risk Manager's Signature/Date , 1I (This section to be completed by City Attorney) Recommendation: Approve `r Deny City Attorney's Signature/Date_� ��1 yr � C q /Z C�/ Settlement Committee approviFjikUis notIfequired for this waiver. If Settlement Committee approval is required, submit this form to City Attorney's be placed on the agenda. Recommendation: Approve Deny City Council approva ' is not equired for this waiver. If City Council approval is required, attach this form to the RCA after consideration by a Se lenient Committee. This insurance waiver [is] [ is not] on City Council agenda. �rw•a RCA ROUTING SHEET INITIATING DEPARTMENT: Economic Development SUBJECT: Economic Develo ment Systems, Inc. Contract COUNCIL MEETING DATE: October 4, 1999 RCA ATTACHMENTS STATUS Ordinance wlexhibits & legislative draft if applicable) Not Applicable Resolution wlexhibits & legislative draft if applicable) Not Applicable Tract Map, Location Map and/or other Exhibits Not Applicable Contract/Agreement (wlexhibits if applicable) Si ' ned in full by the City Affome Attached Subleases, Third Party Agreements, etc. (Approved as to form by City Attome Not Applicable Certificates of Insurance A roved by the Pity Aftome Not Attached (Explain) Financial Impact Statement Unbud et, over $5,000 Not Applicable Bonds If applicable) Not Applicable Staff Report if applicable) Not Applicable Commission, Board or Committee Report if applicable) Not Applicable Findings/Conditions for Ap royal and/or Denial Not Applicable EXPLANATION FOR MISSING ATTACHMENTS Professional liab. cert. forthcoming: ordered through BICEP REVIEWED RETURNED FORWARDED Administrative Staff Assistant City Administrator initial City Administrator Initial City Clerk EXPLANATION FOR RETURN OF ITEM: COVER PAGE REQUEST FOR LATE SUBMITTAL (To accompany RCA) {; REASON (Vhy is this RCA being submitted late?): The original contract for this RAA was prepared on 9110199 without a Professional Liability insurance clause, following the form of the previously approved contract with EDS. At that time, it was our intent to request a waiver by the Agency for errors and omissions, due to the low -risk nature of the work involved. In the meanwhile, we became aware of the city's new B10EP program, and had a new contract prepared, which was completed on 9121199. We have just today received the originally executed contract back from the consultants. EXPLANATION (Why is this RCA necessary to this agenda?): In order to ensure continuity of our downtown retail recruitment efforts, as previous contract expires on September 30, 1999. CONSEQUENCES (How shall delay of this RCA adversely impact the City?): 5i at 0 Approved [] Denied (3 Approved a Denied Initials r Required De z rtment Head Asst. Citz Administrator Ci Administrator 0003982.01 0TM 4f94 Kuhnke, Elaine From: Lamb, Jim Sent: Tuesday, September 28, 199910:43 AM To: Kuhnke, Elaine Cc: Bi ggs, David Subject: RfA Responses for Tenant Recruitment Per your request, we received 2 responses to our August 99 Tenant Recruitment RFP. The RFP was sent to The Langhome Co., The Franzen Co., EDS, and Urban Street Advisors. Responses were from The Franzen Co. and EDS. We requested a proposal each year for a 2 year period. The Franzen Co. proposed 1'� year costs of $87,000 plus out-of-pocket expenses; 2nd. Year costs of $66,000 plus out-of- pocket expenses, for a total 2 year cost of $153,000 plus out-of-pocket expenses. EDS proposed 15t year total costs of $88,720; 2"d. Year total costs of $91,320; for a total 2 year costs of $180,040 (including all expenses). CITY OF HUNTINGTON BEACH 2000 MAIN STREET CALIFORNIA 92648 OFFICE OF THE CITY CLERK CONNIE BROCKWAY CRY CLERK CITY CLERK LFIER OF 1,RANS3II11AL RF-GARDING ITEiiIAEPRQVED BY THE �'C v r M DATE: .2 Sttect •d4ACity, State. zip ATTENTION': DEPARTMENT: REGARDING: See Attached Action Agenda Item ��3 _ pate of Approval Enclosed For Your Records Is An Executed Copy Of The Above Referenced Item For Your Records. Connie Brockway City Clerk Attachments: Action Agenda Page Agreement Bonds Insurance ✓ RCA Deed Other ►4 , droll, Name Nantc v RCA Agrcenunt Insurance Department RCA Agreement Insurance Department RCA Agreement fiisurance Risk Management Department Insurance Copy Qi Other Other thhcr 0:1 oll-cmup/agrmts'transltr ( Telephone: 714-5 36-5227 ) Council/Agency Meeting Held:, Zl-fir-57 Deferred/Continued to: �__Xpproved ❑ Conditiona1y Approved ❑ Denied City Clerk'`s%nature Council Meeting Date: April 21, 1997 Department ID Number. ED 97-13 5--a. 40r64/o CITY OF HUNTINGTON BEACH REQUEST FOR REDEVELOPMENT AGENCY ACTION V SUBMITTED TO: HONORABLE CHAIRMAN AND REDEVELOPMENT AGENG$ CA MEMBERS Yy�fl SUBMITTED BY: MICHAEL T. UBERUAGA, Executive Director I "moo PREPARED BY: DAVID C. BIGGS, Director of Economic Development - �� T SUBJECT: Contract for Professional Services -- Economic Development Svstems.Inc_ (EDS1 w-, Statement or Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Eney ntal Status, Attachmentis) Statement of Issue: The Redevelopment Agency requires assistance in recruitment of appropriate retail tenants for the Main -Pier subarea of the redevelopment project area for both existing vacancies and planned development. Funding Source: Redevelopment Agency Administration Contractual Services Account No. E-TA-ED-810-3-90-00, utilizing a portion of the funds budgeted, but not needed, for -cquisition of mobile homes in Driftwood. Recommended Action: Motion to: Approve and authorize the execution of the attached contract, which incorporates a waiver of errors and omissions insurance requirements, between the Redevelopment Agency and Economic Development Systems, Inc. (EDS) to provide professional services in retail tenant recruitment over a period of up to two years for a not -to -exceed cost of $130,000 including contingencies. Alternative Actions : Do not approve the attached contract. REQUESTFOR REDEVELOPMENTAGENCYACTIONV MEETING DATE: April 21, 1997 DEPARTMENT ID NUMBER: ED 97-13 Analysis: Since the adoption of the redevelopment project in 1982 and the construction of the first new buildings of retail space there has been a turnover of tenants. This is a natural consequence of the evolution of a retail area pioneered by a redevelopment program. However; while specific tenants may have changed, the uses within the downtown core have remained heavily beach and tourist related with a strong youth bias. While the area's location will always dictate a concentration of these uses, it is time to expand the retail mix Within the area to attract mature patrons to augment that already present. The near term future represents several opportunities to accomplish this objective. • Currently there are vacancies in existing buildings within the downtown core. • The construction of the Pier Plaza and Duke's Restaurant will significantly improve the attractiveness of the area to name retailers. • The Plaza Almeria project will provide substantial first-class retail space in the third block of Main Street. • The Waterfront's most recent development scenario includes a retail commercial component. • The 31 acres between First and Huntington streets are being designed and wilt include significant commercial space. It is envisioned that this site will provide a unique environment for a regional attraction. The Economic Development Systems, Inc. (EDS) firm specializes in analyzing existing and planned commercial space in emerging areas and recruiting name retail tenants that represent the future of the area. Since the fine works on a contractual basis to the Agency, as opposed to commission basis, it can focus on recruiting tenants that meet the Agency's aspirations for the retail mix in the area and not on the most readily available tenant. The firm's experience is extensive: the firm was founded in 1991, and both principals are former retail brokers. Since that time, it has worked almost exclusively on behalf of public agencies. Experience with pioneering locations in redevelopment projects include Pine Avenue in long Beach and Old Town Pasadena -- both areas strongly analogous to the Huntington Beach downtown. Tenants that the firm has successfully recruited in these areas include many well -recognized lessees: Crate and Barrel, Z Galierie, B.U.M. Equipment, Limited Express, Bath & Body Works, Hamburger Hamlet, Von's, Circuit City, Bristol Fauns, Cheesecake Factory, Sega Entertainment, Wolfgang Puck Restaurant, Restoration Hardware, Urban Outfitters, The Gap and Barnes & Noble. Details of the frm's background and experience are included in the attached proposal. EDSRAA.DOC -2. 03/28197 9:01 AM v u v REQUEST FOR REDEVELOPMENT AGENCY ACTION MEETING DATE: April 21, 1997 DEPARTMENT ID NUMBER: ED 97-13 It is important to note that the services of this contract are not a "study" but are the implementation of the redevelopment plan. As with all of its implementation efforts, the Agency will not act alone, but will rely on the participation of the private sector. Specifically, staff has solicited contributions from the property owners and developers that will gain from the services of this contract with a goal of receiving a total of $30,000 in contributions to offset the cost of the contract. Staff believes that the redevelopment of the Main -Pier area is at a key juncture with impending private and public improvements in the downtown core and significant new commercial space to be developed in areas beyond the core. Knowledgeable professional assistance in retail recruitment over a relatively long term is necessary to meet the Agency's objectives for tenant mix, tax increment and sales tax generation. For these reasons, staff recommends approval of the attached contract. Given the type of work to be performed under the contract, and the low -risk nature of the "product," the contract incorporates a waiver of the City`s standard requirement for errors and omissions insurance. Environmental Status: Attachment(s): 1. Professional Services Contract with Economic Development Systems. 2. Proposal from Economic Development Systems dated March 8, 1997. (Referred to as "Exhibit A" in Contract) E DSRAA.DOC -3- 04/10197 10:17 AM Professional Services Contract with Economic Development Systems PROFESSIONAL SERVICES CONTRACT BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF 11UNTINGTON BEACH AND ECONOINIIC DEVELOPMENT SYSTEMS FOR COMMERCIAL TENANT RECRUITMENT SERVICES Ziday THIS AGREEMENT is made and entered into this of 1997, by and between the REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California, hereinafter referred to as "AGENCY," and ECONOMIC DEVELOPMENT SYSTEMS, a California partnership, hereinafter referred to as "CONSULTANT." The Agency finds that pursuant to the provisions of Huntington Beach Municipal Code § 3.03.000(d) an essential departmental operation affecting public welfare would be greatly hampered because the procedures of § 3.03.060 would cause undue delay in the procurement of needed services. AGENCY and CONSULTANT agree as follows: A. CONSULTANT shall provide the AGENCY with the following services: Provide commercial tenant recruitment and revitalization services for redevelopment project areas. The specific manner in which the services are to be performed is described in Exhibit "A", including cover letter and proposal, dated March 8,1997, which is attached hereto, and incorporated herein as though fully set forth at length, collectively sometimes hereinafter referred to as "DESCRIBED SERVICES." The services shall sometimes hereinafter be referred to as "PROJECT:' B. CONSULTANT shall perform all work required to accomplish the DESCRIBED SERVICES in conformity with applicable requirements of federal, state and local law. C. CONSULTANT is hired to render the DESCRIBED SERVICES and any payments made to CONSULTANT are compensation fully for such services. D. CONSULTANT shall maintain professional certifications as required in order to properly comply with all city, state and federal law. CONSULTANT hereby designates Jim Harrigan, who shall represent it and be its sole contact and agent in all consultations with AGENCY during the performance of this Agreement. RI.M.-I w AR 19TETNUNT, The services of the CONSULTANT are to commence as soon as practicable after the execution of this Agreement and all tasks specified in Exhibit "A" shall be completed no later than nineteen (19) months from the date of this Agreement. These times may be extended with the written agreement of the AGENCY. The time for performance of the tasks identified in Exhibit "A" are generally to be as shown in the Scope of Services on the Work Program/Project Schedule. This schedule may be amended to benefit the PROJECT if agreed by the AGENCY. 7,TL:G:Agncc:Tenant RLS 95-44a 3127,97 CONSULTANT shall not perform any work under this Agreement until (1) CONSULTANT furnishes proof of insurance as required under paragraph 7 of this Agreement, and (2) AGENCY gives CONSULTANT a written, signed and numbered purchase order (which shall serve as a Notice to Proceed). 3. PAYMENT FOR SERVICES In consideration of the performance of the services described herein, AGENCY agrees to pay CONSULTANT a fee not to exceed One Hundred Thirty Thousand Dollars ($130,000), exclusive of occasional expenses. Expenses shall be substantiated by monthly receipts, for use by CONSULTANT in promoting the Project Area to potential tenants ancL'or developers. Use of funds shall include meals, telephone calls, delivery, graphics, printing, entertainment; the pro -ration with other client Cities/Agencies, of costs for regional and national retail conferences and travel/hotels for same. The maximum amount of these expenses AGENCY will reimburse CONSULTANT shall not exceed 3.8% of the total contract amount. CONSULTANT shall submit to AGENCY monthly work progress statements at the first of each month. Payment shall be due within thirty (30) days of the date of the billing statement. In the event payment is not received within the thirty (30) day period, CONSULTANT reserves the right to cease work until the billings are fully paid. Amounts outstanding thirty (30) days or more from the date of the billing statement will be charged a rebilling amount of2% per month (24% per annum). A. Fee Schedule. The fees shall be calculated from the following schedule: For short term contracts, Principal billing rate is $170 per hour, Senior Associate rate is $140 per hour, Senior Analyst rate is $95 per hour and Administrative/Technical support is $60 per hour. For contracts of a minimum of seven (7) months, Principal billing rate is $150 per hour, Senior Consultant rate is $125 per hour, Senior Analyst rate is $85 per hour, and Administrative/Technical support rate is $50 per hour. In the event AGENCY. requires additional services not included in Exhibit "A", or changes in the scope of services described in Exhibit "A," CONSULTANT will undertake such work after receiving written authorization from AGENCY. Additional compensation for such extra work shall be allowed only if the prior written approval of AGENCY is obtained. Any billings for extra work or additional services authorized by the AGENCY shall be invoiced separately to the AGENCY. Such invoice shall: 1) Reference this Agreement; 2) Describe the services performed; 3) Show the total amount of the payment due; and 4) Include a certification by a principal member of the CONSULTANT'S firm that the work has been performed in a;cordance with the provisions of this Agreement. Fees for any extra work or additional services shall be calculated according to the Fee Schedule described in paragraph 3 of this Agreement. 7/PL:G:Agrce:Tenant RLS 95-444 3/27/97 CONSULTANT shall indemnify and save and hold harmless AGENCY, its officers and employees, from any and all liability, including any claim of liability and any and all losses or costs arising out of the negligent performance of this Agreement by CONSULTANT, its officers or employees. CONSULTANT shall comply with all of the provisions of the Workers' Compensation Insurance and Safety Acts of the State of California, the applicable provisions of the California Labor Code and all amendments thereto; and all similar state or federal acts or laws applicable; and shall indemnify, defend and hold harmless AGENCY from and against all claims, demands, payments, suits, actions, proceedings and judgments of every nature and description, including attorneys' fees and costs presented, brought or recovered against AGENCY, for or on account of any liability under any of said acts which may be incurred by reason of any work to be performed by CONSULTANT under this Agreement. CONSULTANT shall obtain and furnish evidence to AGENCY of maintenance of statutory workers' compensation insurance and employers' liability in an amount of not less than $100,000 bodily injury by disease, each employee, and $250,000 bodily injury by disease, policy limit. HIMEWI&MMA In addition to the workers' compensation insurance and CONSULTANT'S covenant to indemnify AGENCY, CONSULTANT shall obtain and furnish to AGENCY the following insurance policies covering the PROJECT: A. General Liability Insurance. A policy of general public liability insurance, including motor vehicle coverage. Said policy shall indemnify AGENCY, its officers, agents and employees, while acting within the scope of their duties, against any and all claims arising out of or in connection with the PROJECT, and shall provide coverage in not less than the following amount: combined single limit bodily injury and property damage, including products, completed operations liability and blanket contractual liability, of $1,000,000 per occurrence. 1f coverage is provided under a form which includes a designated general aggregate limit, the aggregate limit must be no less than $1,000,000. Said policy shall name AGENCY, its officers and employees as Additional Insureds, and shall specifically provide that any other insurance coverage which may be applicable to the PROJECT shall be deemed excess coverage and that CONSULTANT'S insurance shall be primary. Under no circumstances shall said abovementioned insurance contain a self - insured retention, or a "deductible" or any other similar form of limitation on the required coverage. 71PL:G:Agrec:Tenant RLS 96-444 3127197 N. : It s a IMIJ:: ► Prior to commencing performance of the work hereunder, CONSULTANT shall furnish to AGENCY certificates of insurance subject to approval of the Agency General Counsel evidencing the foregoing insurance coverages as required by this Agreement; said certificates shall: 1) Provide the name and policy number of each carrier and policy; 2) state that the policy is currently in force; 3) promise to provide that such policies will not be canceled or modified without thirty (30) days prior written notice of CITY; and 4) state as follows: "The above detailed coverage is not subject to any deductible or self -insured retention, or any other form of similar type limitation." CONSULTANT shall maintain the foregoing insurance coverages in force until the work under this Agreement is fully completed and accepted by AGENCY. The requirement for carrying the foregoing insurance coverages shall not derogate from the provisions for indemnification of AGENCY by CONSULTANT under this Agreement. AGENCY or its representative shall at all times have the right to demand the original or a copy of all said policies of insurance. CONSULTANT shall pay, in a prompt and timely manner, the premiums on all insurance hereinabove required. ' a0►DOWN a► R a: CONSULTANT is, and shall be, acting at all times in the performance of this Agreement as an independent contractor. CONSULTANT shall have control of all work and the manner in which it is performed. CONSULTANT shall be free to contract for similar service to be performed for other employers while under contract with AGENCY. CONSULTANT shall secure at its expense, and be responsible for any and all payments of all taxes, social security, state disability insurance compensation, unemployment compensation and other payroll deductions for CONSULTANT and its officers, agents and employees and all business licenses, if any, in connection with the services to be performed hereunder. CONSULTANT is not an agent or employee of AGENCY and is not entitled to participate in any pension plan, insurance, bonus or similar benefits AGENCY provides for its employees. T4�01%uv 01141"Ma)y,[N:7�l�isi lj All work required hereunder shall be performed in a good and workmanlike manner. Either AGENCY or CONSULTANT may terminate the agreement upon fifteen (15) days prior written notice to the other party in the event of a substantial failure by the other party to fulfill its obligation through no fault of the terminating party. In the event of termination, AGENCY shall pay CONSULTANT in full for services performed from the date of notice of termination and shall immediately become due and payable. In the event of any dispute relative to this agreement, each party shall bear its own attorney's fees and costs. Il. This Agreement is a personal service contract and the supervisory work hereunder shall not be delegated by CONSULTANT to any other person or entity without the consent of AGENCY. 7/PL:G:Agmelenant RLS 96A43 3/27/97 WINIK-01WIMINMI I &Q a ••. ► :141 All plans, drawings, reports, memoranda, specifications and the like relating to the project shall be the property of the AGENCY. WEEK44-1 ' ' .I ' : sl►� AGENCY shall own all rights to any patent or cop) right on any work, item or material produced as a result of this Agreement. EL' �y f f �`i � t � I Ci]Ti� �cT:\ ►` i �T•7 ai �i ii Ise �►� CONSULTANT shall employ no AGENCY official nor any regular AGENCY employee in the work performed pursuant to this Agreement. No officer or employee of AGENCY shall have any financial interest in this Agreement in violation of the applicable provisions of the California Government Code. 15. NOTICES Any notices or special instructions required to be given in writing under this Agreement shall be given either by personal delivery to CONSULTANT'S agent (as designated in Section 1 herein above) or to the Director of Redevelopment Agency, as the situation shall warrant, or by enclosing the same in a sealed envelope, postage prepaid, and depositing the same in the United States Postal Services, addressed as follows: TO AGENCY: David C. Biggs Director of the Redevelopment Agency City of Huntington Beach 2000 Main Street Huntington Beach, CA 92645 u 'M M, TO CONSULTANT: Jim Harrigan, Principal Economic Development Systems 2909 Vista Del Mar Rancho Palos Verdes, CA 90275 CONSULTANT shall be responsible for full compliance with the immigration and naturalization laws of the United States and shall, in particular, comply with the provisions of the United States Code regarding employment verification. WTUG:Agrec:Tenant RL5 96-44t 3/27197 CONSULTANT and AGENCY agree that AGENCY is not liable for payment of any subcontractor work involving legal services, and that such legal services are expressly outside the scope of services contemplated hereunder. CONSULTANT understands that pursuant to Huntington Beach City Charter § 309, the Agency General Counsel is the exclusive legal counsel for AGENCY; and AGENCY shall not be liable for payment of any legal services expenses incurred by CONSULTANT. 18. CHOICE OF LAW AND VENUE This agreement shall be construed, interpreted, and governed for any and all purposes by the laws of the State of California, and any action on this agreement shall be commenced in the County of Orange, State of California. 19. ENTIRETY The foregoing, and Exhibit "A" attached hereto, set forth the entire Agreement between the parties, including proposal cover letter and proposal. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their authorized officers the day, month and year first above written. ECONOMIC DEVELOPMENT SYSTEMS, a California nartnershitn. AIIUA'16� JIM 7/PL:G:Agree:Tenant RLS 96-444 3/27/97 Principal REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a municipal corporation of the Executive Director ATTEST: PfYI � Agency Clerk APPROVED AS TO FORM: r 'y ency General Counsel J'ZZ--f 7 31 1 INITIATED AND APPROVED Director of Redevelopment Proposal from EDS dated March 8, 1997 (Referred to as "Exhibit A" in Contract) rlp _Lai Lri - � ri r. f rn 2909 Vista Del Mar Third Floor Rancho Palos Verdes, Cofifornia 90275 310.5Q6-4124 FAx 310.546.3914 March 8, 1997 Mr. David C. Biggs Department of Economic Development City of Huntington Beach 2000 Main Street Huntington Beach, California 92648 Subject: Proposal for Entertainment, Restaurant and "Traditional" Retail Recruitment Programs for the Downtown Huntington Beach Core, the "Shea" Property and the "player" Property. Dear David: As requested, enclosed please find our proposal for the Recruitment and Revitalization Plan for the Downtown Core of retail businesses at the pcuth of the Huntington Beach Pier (Program District One), the Shea Property (Program District Two) and the Mayer Property ( Program District Three). David, rather than simply submit a "Scope of Work', we will also provide our "Goals" exercise which we normally develop as an important initial step in this work program. This step should provide a tool for discussion with staff to fine tune the subsequent Scope. It is our opinion, based on our recruiting experience in similarly positioned commercial districts as the Program Areas, that a minimum of 18 hours per week are needed to maintain momen- tum through Phase One (Data and Marketing Plan Development) and 12 hours per week for Phase Two (Recruitment Plan Implementation). Fewer hours will not produce consistent, tan- gible results. Please note the Production Schedule (Attachment `A") listing the approximate start-up times for the various Program components. As stated for Phase I, at 18 hours per week, we estimate the remaining data base development, compilation and analysis, including marketing package development and necessary review meetings for the first of the three project districts, from r v week one through week five (82 hours); for the second of the three project districts, from week six through week eight (64 hours), and; for the third project district, from week nine through week ten (29 hours). The recruitment plan will begin immediately thereafter. The reduction in time and cost, for both Phases I and II, is possible because of the overlapping T:Conalllic I R Development LL Systems ��(� I Mr. David C. Biggs March 8, 1997 Page 2 nature of analyzing and recruiting for contiguous areas during the same time frame. The aforementioned Phase 11 tangible results (e.g.. the commencement of retailer tours of available space and/or the beginning of lessorltenant negotiations) will begin at approximately the 28 week Recruitment Phase 11 mark (336 hours) for District One; the 44 week Recruitment Phase 11 mark (528 hours) for Districts One and Two; the 55 week Recruitment Phase 11 mark (660 hours) for Districts One, Two and Three and, will extend, by subsequent contract exten- sions, until our mutually agreed upon objectives are met. If less than the proposed weekly hours are requested, adjustments for all areas of performance will be adjusted accordingly. Our fee structure, outlined on page 4 of the following proposal, assumes that certain segments of the listed Scope of Work may have already been completed for the Program Area and/or compiled by previous consultants and/or Agency/City staff (e.g., current broker listing sheets, ownership lists and mailing labels, sales tax data, traffic counts, area parking maps, workable base maps, Program Area's tenant lists, listing of trade area competition, prospective tenants, trade area demographic information, building vacancy, parcel plot plans, etc.). If these seg- ments are not complete or available, then they will have to be completed in a timely manner by staff or by EDS for an additional charge, or the overall effectiveness of the program could be compromised. ' As you are aware, we are currently under contract to provide similar revitalization programs for the cities of Long Beach, Pasadena, Los Angeles, San Diego, Culver City, Rancho Mirage, South San Francisco, etc., and have recently concluded a market research and retail consulta- tion program for a four -block area of Downtown Santa Ana's Hispanic "Mercado" area for the Santa Ana Redevelopment Agency. For comparable work products, we have been under contract for over five years with the City of Long Beach in the downtown retail area including Pine Avenue and, more recently the $750,000,000.00 Queensway Bay project. The results of our Long Beach efforts can be found on Attachment'B' and'C" with Attachment "G" being a descriptive letter regarding our pro- posed 1995 contract from Director of Community Development Susan Shick to the Long Beach City Council. Our work product for our two year effort in the City of Palmdale on Attachment'D' and 'E' with our six month effort in Pasadena listed on the previously submitted Attachment OF'. Our total qualifications are more fully described within the attached "Firm Qualifications'. i , David, co -principal Pat Hurst and I bring over 39 years of recruitment, retention and lease/sale negotiation experience to this assignment and are personally committed to producing a cus- 1 l = tomized, usable working strategy for guiding the Program Areas' recruitment program. We are members of the Urban Land Institute (ULI), International Council of Shopping Centers Fct) c�rnic 1 7�, if eviiopnient Th S "Stems Mr. David C. Biggs March 8, 1997 Page 3 (ICSC), California Association for Local Economic Development (CALED), National Council for Urban Economic Development (CUED), California Redevelopment Association (CRA), International Downtown Association (1DA) and are licensed, but do not act as, real estate bro- kers except in "investor" purchase situations. We look forward to the opportunity of working closely with you, City and Redevelopment Agency management and staff, business people, commercial brokers and Huntington Beach residents to develop creative action steps aimed at analyzing, planning and, subsequently, implementing the recruitment and revitalization programs for the aforementioned designated Program Areas. Very Truly Yours, Economic Development Systems Jim Harrigan Principal cc: Pat S. Hurst •d pme w. L Presented to Mr. David C. Biggs Director of Economic Development City of Huntington Beach Jim Harrigan and Pat Hurst Principals Economic Development Systems March 8, 1997 G3'i3.1 C -1 4 - �3 ra tni Jvvt,i = PROPOSAL FOR THE DEVELOPMENT AND IMPLEMENTATION OF A RETAIL RECRUITMENT AND REVITALIZATION PROGRAM FOR THE DOWNTOWN HUNTINGTON BEACH CORE, THE SHEA PROPERTY AND THE MAYER PROPERTY Economic Development Systems ("EDS") is pleased to submit this proposal for professional services with respect to the above subject. It is understood that the Huntington Beach Redevelopment Agency wishes to hire the services of a Retail Recruitment Consultant to structure and implement an entertainment, restaurant and `traditional" retail recruitment program for the Downtown Core of retail businesses at the mouth of the Huntington Beach Pier, the "Shea" Property and the "Mayer Corporation" Property ("Program Areas"). The purpose of this Retail Recruitment Program and Implementation Plan is to provide a strategy for establishing a desirable increase, upgrade and diversity in the mix of retail uses that will also capitalize on current successes of the Program Areas as well as to build upon and enhance the existing programs of the City of Huntington Beach. Specific goals of the program include the following: i. To create a realistic action plan that builds upon existing Program Areas' strengths and provides maximum exposure from limited resources. 2. To create a retail recruitment action plan aimed at actively involving Program Areas landlords, existing tenants, commercial brokers, developers and City/Agency management and staff. 3. To recommend target niche concepts aimed at encouraging uses to compliment the existing retail businesses. 4. To provide recommended tenant absorption direction for in filt of retail space. 5. To create a retail recruitment plan that provides recommendations that distinguish the Program Areas from other retail already existing or planned in the greater Western Orange/Southem Los Angeles County trade areas. ' 6. To address the integration of existing Program Areas vacant spaces into the overall marketing plan, including recommendations for building and/or in -line opportunities and constraints from a marketing and leasing perspective. T. To Identify potential leasing and development sites, if any, for retail tenant use, all in >. ►a consultation with City/Agency staff and appropriate stakeholders. 8. To determine the names and locational requirements of target local, regional and national tenant types while identifying specific sites to accommodate their needs. 9. To draft and implement an action plan for recruiting target market developers, retailers, restaurateurs and/or attractions, and to identify and assist in the development of the specific tools required to accomplish these tasks based on successful strategies utilized by other commercial districts. Development and production of brochures, maps and videos are D] A included in the budget presented herein. To achieve the above goals, the following scope of work is required: 1. Kick -Off Meeting with City/Agency staff to discuss assistance, goals and timetables. 2. Compile provided inventory within the Program Areas and review areas' retail uses. 3. Analyze existing retail sales tax data for the Program Areas. (It is understood that EDS will be provided by the City with a detailed itemization of sales tax information for all uses within the Program Areas to be analyzed on a confidgntial basis). 4. Review provided listings of competition in key shopping areas and centers that provide competitive shopping, dining and/or entertainment. 5. Prepare a demographic and lifestyle overview of the greater Huntington Beach trade area residents, visitors, tourists and daytime workers. 6. Conduct selected interviews with knowledgeable real estate and retail management and/or teasing contacts who are familiar with the Program Areas and relevant competition. 7. Prepare a retail voids overview. 8. Prepare preliminary retail concept recommendations. 9. Research select local, regional and national retailers. 10. Recommend the highest and best use for the Program Areas' vacant spaces and development sites. 11. Prepare and implement a marketing and leasing plan that outlines the following: (1) A strategy for the Program Areas to determine what retail is needed to satisfy the voids in the Program Areas; (2) Identify `Key Tenants' that would would be successful and draw other successful retailers to the Program Areas; (3) Identify possible locations i►, oraic jr 1c g for "Key Tenants"; (4) Vacant building and in -fine space use strategy; and (5) Provide plans for a mix of "traditional" retail, restaurant and possible entertainment usage to complement the existing successes of the Program Areas. 12. Present market research findings, conclusions and recommendations relating Steps 1-11 above to City/Agency staff. 13. Create and implement a marketing/promotions action plan for recruiting the target market businesses and attractions. This will include direct contact with potential developers, tenants and/or their respective brokers; production of specific market information per tenant request; ongoing maintenance and update of Retail Vacancy Roster; ongoing effort to expand the origina! prospective tenant roster; coordinate tours and meetings with potential developers and/or tenants; describe all economic incentives (if available) and, assist throughout negotiation/occupancy as necessary. 14. Approach to Area Promotion/Anti-Favoritism Concerns: It is understood that the Consultant would not be actively representing specific properties in the Program Areas in sales and/or lease transactions to users, but would represent the area as a whole. Tenant referrals will be made directly to the leasing agents for the properties involved. All prospective tenants will be provided with information which specifically addresses their individual space and area requirements. The tenant will then select and eliminate properties as they believe necessary. Consultant shall respond accordingly to those properties of interest, via the listing broker, and will then monitor and participate in the transaction as required. It has been our experience that dialogue with "hot prospects" must be on an ongoing basis to insure that if the tenant's first choice does not work out, the second alternative is then pursued. It is also highly probable that the Consultant will contact and recruit tenants that are not represented by an exclusive broker. Upon request by the respective tenant, Consultant shall provide a list of at least three Orange/Los Angeles County area brokers to represent said tenant. Tenant shall be fully responsible for further selection of a specific broker. Should there be several area brokers who should be presented as candidates, then a full listing can be rotated on a case -by -case basis. It is also understood that any tenants which do not select the Program Areas will be encouraged to lock elsewhere in the City of Huntington Beach for appropriate locations. f . Jim Harrigan and Pat Hurst, Principals of Economic Development Systems will be personally i1 responsible for conducting and supervising the production of the assignment. Their resume/ professional qualifications are attached. 3 i- January, 1997 Principal billing rate for short term contracts is $190 per hour, Senior Associate rate is $155 per hour, Senior Analyst rate is $105 per hour and, if needed, the hourly billing rate for Administrative / Technical support is $65 per hour. EDS 1997 rates for a minimum eight (8) month assignment are $170 per hour, Principal billing rate; Senior Consultant rate; $140 per hour; and, if needed, the hourly billing rate for Senior Analyst will be $95 per hour and for Administrative / Technical support, $55 per hour. It is projected that the hourly mix for this assignment will be 2 hours of Principal time for every hour of Senior Consultant time and every hour of Senior Analyst time. This projected mix will average the hourly rate at approximately $140 per hour throughout the assignment. Using the aforementioned time and rate estimates, Phase I, Data Analysis and Marketing Plan Development is projected not to exceed $11,464 for the first district; $8,960 for the second dis- trict, and, $4,060 for the third district. Phase 11, Recruitment Plan Implementation, is projected not to exceed $47,040 for the initial district; $26,880 for the second district, and; $18.480 for the third district. This reduction from our typical Phase II, one district cost of $46,600 represents a savings of 23% for two districts, to 35% for the total three districts. The Agency shall reimburse expenses for use by Economic Development Systems in directly related job expenses, including research and/or promoting the Program Area to potential ten- ants and/or developers. Use of the funds may include air fares; ground transportation; tele- phone calls; delivery graphics and printing; meals; entertainment; the pro -ration, with other client Agencies/Cities/Associations, of costs for regional and national retail conferences (e.g., ICSC Conferences; Trade Conventions, etc.) and travellhotel rooms for same. The maximum amount to these expenses will not exceed 3.8% of the total contract amount. • •� As of today, March 8, 1997, the Principals can allocate up to fourteen (14) total hours per week for this assignment and can schedule a commencement of services for May 1, 1997. As the proposed mix for this assignment is two hours of Principal time to one hour of Senior Consultant time and one hour of Senior Analyst time, this would project the possible, maximum total weekly hours at twenty-eight (28). Please note that as outstanding proposals/contracts are executed, this time commitment and commencement date may possibly be altered/delayed. Monthly work progress statements will be submitted the first of each month. Payment shall be 4 H-1 due within thirty (30) days of the date of the billing statement_ In the event payment is not received within said thirty (30) day period, it is the policy of the company to cease work until such time that the billings are paid in full. Amounts outstanding thirty (30) days or more from the date of the billing statement will be charged a rebilling amount of 2% per month (24% per annum). Should this assignment be abandoned or terminated for any reason whatsoever dur- ing the progress of the work, billings will be rendered up to the date of said abandonment or ter- mination and shall immediately become due and payable. to the event of any dispute relative to this agreement, the prevailing party shall be entitled to attorney's fees and costs. This agree- ment shall be construed, interpreted, and governed for any and all purposes by the laws of the State of California, and any action on this assignment shall be commenced in the County of Los Angeles, State of California. Economic Development Systems ("EDS"), based in Manhattan Beach, California, provides consulting services to city governments, redevelopment agencies, Business Improvement Districts (BIDs), real estate developers, institutional investors, land owners, and other consult- ing firms. A staff of experienced professionals with backgrounds in real estate, retail, marketing, management and research form the core of EDS. Economic Development Systems, a partnership, founded in 1991 by Pat S. Hurst, and formal- ized in 1993 when co -principal James L. (Jim) Harrigan joined the firm, provides retail recruit- ment services focusing on: • Market Assessment • Tenant Recruitment • Plan Implementation • Site Selection Criteria • Strategic Plans • Tenant Negotiations • User Profiles • Ongoing General Consultation These services compliment traditional demographic, census and market statistic studies provid- ed by firms such as Economics Research Associates, Seifel Associates, etc. To help clients better understand their markets and their prospective tenants, EDS examines and analyzes the relevant retail, demographic, and social trends as well as factors that impact a project or an area and then recruit the specific tenants to fill those needs by working closely with City/Agency staff, landlords, commercial real estate firms, and local business owners. EDS provides a coordinated retail recruitment program to prospective businesses currently located outside a given market area by providing outreach to local, regional and national bro- kers who represent the targeted retailers. The campaign includes promotion of all applicable economic incentives available to retailers such as the Enterprise Zone. Revitalization Zone, Loan Programs and other relevant incentives. EDS' primary responsibility is to reach retailers by personal contact and to match such retailers with specific locations that can accommodate their needs_ Upon confirmation of the prospective tenant's interest, EDS assists in identifying various leasing and financing strategies that will c►'.t �.% �,' tit H' `` �Trr�s f f 10- culminate in a commitment on the retailer's behalf to the market area. This includes proposal analysis, lease oversight and constant monitoring of the transaction. Economic Development Systems isthas providing consulting services for the following clients: • City of Long Beach • City of Pasadena • City of Lawndale • City of Azusa • City of Palmdale • City of Culver City • City of Santa Ana • City of Fullerton • City of San Diego • City of Rialto • City of Rancho Mirage C674;i iil-� 111 • City of Los Angeles • City of Hermosa Beach • City of South San Francisco • Economics Research Associates • Shaver Investment Properties • Coudoures Family Trust • Keyser Marston Associates (San Diego) • The Arroyo Group • Sedway Kotin Mouchly Group • Gensler • Seifel Associates Economic Development Systems is certified by the State of California, Division of Civil Rights for participation in Federally and State funded contracts as a woman -owned and operated small business (Certification N ember : CT 023244) 1. City of tong Beach: As a Retail Recruitment Consultant for the City of Long Beach (population 430,000) since January 1992, EDS works closely with the City staff in the revitaliza- tion of the downtown shopping, restaurant and entertainment district. The program includes pro- moting not only specific economic incentives to key retailers, but providing assistance to proper- ty owners and commercial brokers as well. The incentives include: Key Tenant Loans; Retail Safes Tax Rebate Programs; the Enterprise Zone and Los Angeles Revitalization Zone Programs; SBA Loan Programs, etc. Additional support includes expansion programs for exist- ing retailers, profiles of existing properties for lease and/or sale and demographic profile compi- lation for specific tenant recruitment. Other Long Beach area Retail Recruitment projects include a 100 acre power center proposed at the 605 Freeway and Carson Boulevard; a Redevelopment Agency Revitalization program for Los Altos Shopping Center (45 acres), and the Bixby Knolls Community Revitalization Area, ccnsisting of a neighborhood shopping center, street front retail and commercial districts. 2. City of Pasadena: Old Pasadena. The purpose in hiring EDS for the Old Pasadena retail district was to create a "proactive" program to address tenant mix issues in the remaining build - out of the district. The effort includes communication and cooperation with property owners, commercial brokers, developers, existing retailers, city staff and elected officials. While the Old Pasadena retail district is a very well known popular destination, the retail recruitment effort focuses on striking a balance among the various categories of retail while maintaining the 0 r� J� ?,0T.M his tonic character of the district. In addition, a list of "key tenants", established and based upon individual tenant requirements, space availability, etc., is used for specific tenant recruitment efforts. Supplemental information such as area maps, property profiles, vacancy rosters, etc., have been developed to be included in the promotional package. We are currently working with expansion and/or probable tenants Crate and Barrel Home Store, Pottery Bam, Barnes and Noble, Ralph Lauren Polo Shop, Rampage, Z Gallerie. 3. Downtown Riverside: EDS provides market confirmation assistance to firms such as Gensler and Sedway Kotin Mouchly Group. EDS recently assisted the San Diego office of Keyser Marston Associates in development of the `Key Tenant Strategy" for the historic area of Downtown Riverside and the Mission Inn District with Jerry Trimble of KMA. EDS' responsibility included a specific assessment of the range of marketing/tenanting strategies that could be used in the revitalization. The "blighting influence' resulting from deteriorating buildings that often impact older downtowns in Southern California was also addressed. An analysis of mar- keting directions used elsewhere in Southern California in the revitalization of older street retail commercial districts and the relevance of these approaches to the Mission Inn District of down- town were used. As a result of these findings, a recruitment strategy was established which focused on specific types of tenants with the greatest possibility of near -term and long-term success. Pat S. Hurst Principal Pat S. Hurst has more than fifteen years of diverse experience in all phases of commercial real estate in the Greater Los Angeles area including marketing, promotion, leasing, tenant recruit- ment, business development, financial analysis, construction, etc. She holds a Bachelor of Science Degree from Tennessee Technological University and was a Dean's List Honors Recipient. Current memberships include: The International Council of Shopping Centers, Urban Land Institute, and California Association for Local Economic Development. While Ms. Hurst's focus has been retail development for the past few years, her experience in both corporate and retail recruitment has strengthened her skills in market research and eco- nomic development. During her career in corporate real estate, she negotiated over 1.5 million square feet of lease transactions. As Leasing Coordinator for the development division of Cushman Realty Corporation, she negotiated more than 500,000 square feet of leases with ten- ants such as Disney Channel and Walt Disney Pictures, Teledyne, Wells Fargo Bank, Mobil Oil, Polygram Records and Warner Brothers. Prior to her years at Cushman Realty Corporation, Ms. Hurst worked with Reliance Development Company as Leasing Representative for the 1000 Wilshire Boulevard Building in Downtown Los Angeles and the CIGNA Health Plan building located at 505 North Brand in Glendale. As a Leasing Specialist with American Trading Real Estate Company, she worked on the promotional campaign for the 880,000 square foot Glendale Square project planned for the 7 oraic immediate commercial district of Glendale. She also served as Vice President of Marketing for Howard Development Corporation in Glendale, and Project Manager for Mitchell Development in Sherman Oaks. As a result of her working knowledge of the commercial office and retail real estate markets, Ms. Hurst provides her clients with experience ranging from the marketing of individual retail and office projects, to assisting with the revitalization of business and commercial districts throughout the Greater Los Angeles area. James L. Harrigan Principal For the past eighteen years, Jim Harrigan has been involved as a broker and supervising manag- er in over 1800 separate commercial lease or sale transactions for a total consideration in excess of $1.25 billion. Before joining Economic Development Systems with Pat S. Hurst in 1993, Jim recruited, hired, trained, and counseled over 105 of the top retail, office, industrial, and invest- ment brokers in the greater Southern California commercial market. During this time, Jim assist- ed in creating and closing some of the areas largest real estate deals for three diverse commer- cial real estate companies: Ashwill-Burke and Company (1978-1982), Charles Dunn Company (1982-1990) and The Goodglick Company (1990-1993). From a 1978'Rookie of the Year" broker in the San Fernando Valley for Ashwill-Burke & Company, Jim was promoted to Sales Allanager of Ashwill-Burke's San Diego offices. In 1982, as Regional Manager, he formed the Indus"trial Division of the Charles Dunn Company and in 1987, he started the Retail Division of the Dunn Company's Westside office. As Vice- President/General Manager of the Goodglick Company, Jim led a group of mature, highly suc- cessful Industrial brokers in both the LAX and Long Beach locations. Following his recruitment by Union Oil in 1969, while still a student at Loyola University of Los Angeles, Jim was requested to report to UNOCAL's marketing headquarters in Chicago following his graduation. For three years he underwent a highly sophisticated training program in sales and marketing management. He was then sent to corporate headquarters in Los Angeles, where he held eight varied and increasingly more responsible positions until his entry into real estate brokerage during 1978. With this varied and strong management background Jim Harrigan, as Principal of Economic Development Systems, brings over 25 years of marketing success to the Southern California marketplace. His actual experience in commercial and industrial real estate spans the entire six county area of Southern California. His working knowledge and relationships with commercial real estate brokers throughout this market is second to none. 0 ►. tj ratp# CLIENT REFERENCES Susan F. Shick Director of Community Development City of Long Beach 333 W. Ocean Boulevard, 3rd Floor Long Beach, California 90802 (310) 570-6570 Fred S. Solomon Past - Redevelopment Manager City of Long Beach P.O. Box 278 Big Bear City, California 92313 (909) 585-8520 City of Long Beach Gerald R. Miller Economic Development Manager City of Long Beach 200 Pine Avenue, 41h Floor Long Beach, California 90802 (310) 570-3851 Barbara Kaiser Redevelopment Manager City of Long Beach 333W Ocean Boulevard, Third Floor Long Beach, California 90802 (310) 570-6340 City of Palmdale Dolores Buddell-Teubner Past - Economic Development Coordinator City of Palmdale Current - Assistant to the City Manager City of Bakersfield 1501 Truxton Avenue Bakersfield, California 93301 (805) 326-3751 Henry Garcia City Manager City of Azusa 213 E. Foothill Boulevard Azusa, California 91702 (818) 334-5125 Ext. 295 City of Azusa Richard E. Forintos Redevelopment Project Manager City of Azusa 213 E. Foothill Boulevard Azusa, California 91702 (818) 334-5125 City of Pasadena Marsha V. Rood, A.I.C.P. Department Operations Administrator Housing and Development Department City of Pasadena 100 North Garfield Avenue Pasadena, California 91109-7215 (818) 4054660 LM EJ arc �'S tti�3 O 11 City of Culver City Mark H. Winogrond Miriam Mack Community Development Director Redevelopment Administrator City of Culver City City of Culver City 9770 Culver Boulevard, Third Floor 9770 Culver Boulevard, Third Floor Culver City, California 90232-0507 Culver City, Califomia 90232-0507 (310) 253-5702 (310) 253-5762 Larry B. Morrison Elizabeth Seifei Principal Principal The Arroyo Group Seifel Associates 142 Colorado Boulevard 220 Montgomery Street, Suite 448 Pasadena, Califomia 91105 San Francisco, Califomia 94104 (818) 795-9771 (415) 989-1244 Gerald M. Trimble Tom Jirvosky Principal Principal Keyser Marston Associates Sedway Kotin Mouchly Group 12555 High Bluff Drive, Suite 160 12100 Wilshire Blvd., Suite 1050 San Diego, California 92130 Los Angeles, California 90025 (619) 792-7577 (310) 820-0900 a;t4-9:;laI;RLq Ted Lawson Arne Freeman (Crate & Barrel, The Limited) Senior Vice President Coast Commercial Brokerage CB Commercial 438 Carrol Canal 990 West 190th Street, Suite 100 Venice, California Torrance, California 90502 (310) 822-0309 (310) 516-2350 Richard Rizika Mark F. McGaughey Senior Broker First Vice President CB Commercial CB Commercial 990 West 190th Street, Suite 100 533 South Fremont Avenue Torrance, California 90502 Los Angeles, California 90071 (310) 516-2338 (213) 613-3298 10 •r LWV g..'70 141� IIA 11 Bob Walsh Executive Director Westwood Village Management Corporation 1081 Westwood Boulevard, Suite 218 Westwood Village, California 90024 (310) 208-1984 R � 11 Gary Wayland President Vision Hermosa 1097 Aviation Boulevard Hermosa Beach, California 90254 (310) 376-0455 a- ATTACHMENTS ATTACHMENT "A" ECONOMIC DEVELOPMENT SYSTEMS March 8,1997 Production Schedule Huntington Beach Redevelopment Agency 1997 1998 Phase II: 55 Weeks - Districts One, Two and Three Phase III: Implementation of Recruitment Plan Recruitment Continuation & Negotiation * Please note: Phase I output is based on 18 hours per week, Phase 11, 12 hours per week. If Economic Development Systems is contracted for less than these recommended minimum hours, then the time schedule will be adjusted accordingly. q Is Economic Development Systems ATTACHMENT "B" CrrY OF LONG BEACH COMPLETED TRANSACTIONS Tenant Square Footage Z Gallede 20,000 Crate & Barrel 13,000 B.U.M. Equipment 7,800 Jillians Restaurant & Billiards 17,000 Chicago For Ribs 3,000 Pasta Presto 3,000 Ccffee Plantation 4,500 Trilussa Restaurant 6,200 Limited Express 5,800 Bath & Body Works 4,500 Art of Hands Gallery 3,000 Hamburger Hamlet f 7,500 Vons Expansion 80,000 Starbucks (2) 2,500 Celiar V Restaurant 2,000 Cha Cha Cha Restaurant 8,000 King Crab Lounge 1,500 Circuit City 40,000 Bristol Farms 25,000 Gcod Guys 40,000 Barnes & Noble 30,000 Ross Dress For Less 40,000 Gold's Gym _35,000 Sub -Total: 399,300 Office Space: Levi Strauss Regional Sales Office 10,000 DeVry Institute 100,000 Auto Club of Southern California 100,000 Sub -Total: 210,000 TOTAL: 609,300 V Economic Development Systems ATTACHMENT "C" CITY OF LONG BEACH ACTNEIPROPOSED TRANSACTIONS Tenant Office Depot Orchard Supply Best Buy Barnes & Noble Cheesecake Factory Sega Entertainment 1MAX Theater Wolfgang Puck Restaurant Rampage Clothing Rhino Chasers Brewery Puzzle Zoo Price/Costo Stan Glass Hut Restoration Hardware Urban Outfitters The Gap TOTAL: Square Footage 25,000 40,000 58,000 25,000 10,000 30,000 35,000 9,000 7,000 7,000 7,000 150,000 2,500 5,000 10,000 8.000 428,500 Economic Development Systems ATTACHMENT "D" CITY OF PALMDALE COMPLETED TRANSACTIONS Square Annual City Sales New Tenant Footage Tax Revenue Jobs Best Buy 58,000 $ 325,000 125 Blockbuster Music 15,000 $ 35,000 40 Discovery Zone 15,000 $ 25,000 45 Bath and Body Works 4,000 $ 15,000 16 Pic'N Save 15,000 $ 45,000 35 Victoria's Secret 6,000 $ 20,000 24 Applebees Restaurant 7,500 $ 25,000 30 Coco's 1 Carrows 8,000 $ 20,000 32 Kinko's 6,000 $ 20,000 24 Barry's Jewelers 2,000 $ 20,000 8 Kenny Rogers Roaster 3,500 $ 8,000 14 Market @ Alpha Beta Site 25,000 $ 25,000 65 K-Mart 140,000 $ 200,000 150 Totals: 305,000 Sq. Ft. $ 783,000 Annuals 608 Jobs With our average 10 year lease this translates to $7,830,000 new sales tax revenue to Palmdale for the years 1993 through 2002. t- Economic Development Systems ATTACHMENT "E" CrTY OF PALMDALE ACTNEfPROPOSED TRANSACTIONS Prospective. Tenant Square Footage Orchard Supply 40,000 America Live 60,000 Bed, Bath & Beyond 30,000 Chicago for Ribs 5,000 Dames & Noble 30,000 Sports Chalet 30,000 Chevy's 8,000 Ben Franklin Crafts 20,000 Sportmart 45,000 Smart n' Final 25,000 Thieves Market 10,000 Taco Bell (2 sites) 10,000 Fresh Choice 8,000 Family Fitness 15,000 Price Costoo 156,000 Office Depot/Staples 25,000 Sam's Club 160,000 Petco 20,000 Cost Plus 25.000 Denim & Diamonds 20,000 Crown Books 20,000 Ruby's 5,000 Jillians 12,000 Recreation World 100,000 Hotel Planning Assoc. Tenants 152,000 Ikea 150,000 3-D Bed & Bath 25,000 Bed, Bath & Linens 30,000 Baby Unlimited 20,000 Juvenile Shcp 15,000 TOTAL: 1 271,000 Economic v Development Systems ATTACHMENT "F" CfTY OF PASADENA ACTNEIPROPOSED TRANSACTIONS "Old Pasadena" Tenant Square Footage Crate & Barrel Home Store 35,000 Pottery Barn 15,000 Restoration Hardware 5,000 Mikasa 10,000 Jerry's Deli 5,000 Rampage Clothing 6,000 Barnes & Noble (Expansion) 20,000 Copeland Sports _ 50,000 Anthropology 12,000 Cheesecake Factory 10,000 Container Store 23,000 Puzzle Zoo 15,000 Ralph Lauren 5,000 California Culinary Academy 45,000 Saks Fifth Avenue - Main Street 50,000 Levi Strauss Stores 10,000 TOTAL: 316,000 L. Ql ACHMENT "G" L.% CITY OF LONG BEACH DEPARTMENT Of COMMWITY DEVELOPMENT 31] WEST OCEAN SOULEVAAD December 13, 1994 HONORABLE MAYOR AND CITY COUNCIL City of Long Beach California MiG BEACH. CAUFOMIA 90902 copy ca ' cn SUBJECT: Consulting Services Agreement for Professional "tail Recruitment Services Rendered to the Economic Development Bureau -of tie Dgoartme,Dt of Community Development It is recommended that the City Council request the City Attorney to prepare and authorize the City llanager to execute a consulting services contract with Economic Development Systems (EDS) for professional services related to the identification and recruitment of suitable retail tenants for Downtown, Queensway Bay, Bixby Knolls and other areas of the City for the Economic Development Bureau of the Department of Community Development. Economic Development Systems provides a coordinated retail recruitment program to prospective businesses currently located outside the Long Beach market area. Economic Development Systems also provides outreach to local, regional and national brokers who represent the targeted retailers. The campaign includes promotion of all applicable economic incentives available to retailers such as the Enterprise Zone, Revitalization Zone, and other relevant incentives. Economic Development Systems' primary responsibility is to reach retailers by telephone, mail or personal contact, and to match such retailers with specific locations that can accommodate their needs. Upon confirmation of the prospective tenant's interest, Economic Development Systems assists in identifying various leasing and financing strategies that will culminate in a commitment on the retailer's behalf to the Long Beach market area. This includes proposal analysis, lease document review, coordination of any applicable incentive programs and oversight and monitoring of the transaction. The recommended consulting firm, Economic Development Systems, provides retail recruitment services to other Cities, such as Pasadena, Palmdale, Azusa, Hermosa Beach, etc., and has worked very successfully with the City of Long Beach over the past three years. Economic Development Systems has been responsible for the successful recruitment of Z Gallerie, Crate & Barrel, B.V.M. Equipment, Coffee Plantation, Chicago for Ribs, Pasta Presto and Jillian's. Current tenant activity includes efforts to recruit Limited Express, Bath & Body Works, Barnes & Noble, Rampage, and Interior Visions to name a few. Economic Development Systems is also responsible for the interest of two national retailers in their search for distribution facilities in Admnl "bon (1101S► SMI • Eecno nk C*v*&n0.n.n4 (110)510 VM • I1-misln4 SMVICFA (7f015TOX9419 • FUlOb dv" SmViCaS (310)SM4064 HONORABLE MAYOR AND CITY COUNCIL December 13, 1994 Page 2 Long Beach. The principal assigned to Long Beach, pat Furst, has negotiated lease transactions totaling more than 1.7 million square feet of space in the greater Loy: Angeles and Long Beach areas. Pat was previously Leasing Coordinator for Landmark Square and was with Cushman Investment & Development Corporation for four years. Before her tenure at Cushman, she worked at Reliance Development Group of New York and at American Trading Real Estate Company of Baltimore, Maryland. Economic Development Systems was selected from a list of three qualified candidates. The hourly rate for services is $100 per hour with a maximum of 29 hours per week. Work hours are arranged as needed based on direction of the Community Development Director. Performed contract services will not exceed $165,200 annually. In addition, administrative support services at $45 per hour, not to exceed 10 hours per week with a total cost of $26,550.00, will provide clerical services. Development Systems will also be reimbursed for travel to and attendance at required meetings, trade shows and industry conferences not to exceed $3,000. The tern► of this contract shall be November 14, 1994 to December 31, 1995. The majority of funding needed for this effort will be provided through tax increment funds, with limited Community Development Block Grant funds used as is required. No general funds are required to support this project. This report was reviewed by Principal Deputy City Attorney Heather A. Mahood. IT IS RECOMMENDED THAT THE CITY COUNCIL: (1) Request the City Attorney to prepare a contract with Economic Development Systems for the period of November 14, 1994 through December 31, 1995. (2) Authorize the City Manager to execute a contract with Economic Development Systems for the period of November 14, 1994 through December 31, 1995. R7ecttul lyy submitted, Susan F. Shick Director of Community Development SFS:GRM:lr APPROVED: Jam Hankla City Mdbager eds.cll Apr-04-07 04:30P Garber S Associates 310 545 5667 P.01 'LWM AN& of tpwm ww,* l :l9AAimn DR eat-ia ww omwamo 4o -or- I'm 4wuwm Tim .Nab% gym. tail -Avian► ...a routed ou Mae 42?uoN] = osmve oaar.7git thew 304 do .N vVOMr `M%_ _..t.=AL'L-�'+r�a'.1.? w.1 .�''SY+1rL�i �,� � Ni.f� ..7hr w*....w•-1 :•,r H.�a-.. �...�.•Zh•: �..,�iF �'ia� 8b9Z6 1fI1-l (TO ' HOM NOL;1+1LdW41 J3�tLS NM OOOZ JJl�iIdO►i31►3] 0 L wow= 30 Iq3czvd3KT S33;DldM I 0 ' SLNZN SIX ')aM N ZN3* Q12AMad ICJ M N=241I1" MU 9 1I71f38 NML'JNIIMIH .10 JLLM Ir�+,� 14 a: •r!!y rt w.. •M.....�+i•K•�•y ��... a��i! 6% 'I.ilI1 I 30 .LNLIMD[W NON VW ADIZ` 13000 30 37I1CW AVO Ot ' 15Nt ;t!a�IZIOQI! 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[LgpnrUtl>'R � w .y Us . •. t-• .ham 'w.._—_ ' _ _ _ __.�.... �J:� NIMLM9 I MIR � SSZ9 A�TPJM FA:ct 1Rr►A.sn rJ • vA l vaf l ilil VIM 01 31051SO240 KAL'S OFFICE KOCH PACE 02 CPR. 8.1997 3:07PM � p Q- !D NO.0 3 P.1/1 21 �• PD. 13X 42OW1, SAN FRANCWO, CA 94142.0807 ATIN 4 r44v4q^W aw RUN© WMFICATE of WORKERS' COMPENSATION IfMt MMOE APRI L 101 Cy xUIMp[He: 141 S432 - 97 CtAWCATI WON: 1-1-99 r CITY OF N"INVTON MACH RrW Coco MAIN BT K NTINGTON BEACH CA 92"8 Joe: INCEPTION DAT+C 1-1-97 L The to to artily v* wr ha►* iaawd a vend Yt* Nrw Comomsat►on inswanee Panay In a lbrm apprawod by V* Ca!ivrls Insurance Curnmossioner to the emp'ayer narmad below for the policy goal indteVed. 30 TIVA Vo'tay is not @A"t to ciAwation by tna Fund vwW upon VXdaW advence wMw nobeo to"wrrpk"r. Via W+II also 9+vw rw 1; dsyr adWROS Aobm should this policy bo car►oelted pmor to to normal sx*?Wian. Viis "rttrleats of Insurance is not sn insure moo poflGy and Coo not smw 4, a fiend W aft? fie wwope alhrdwd by the roltdot PeAd hs*n. NOtwithmmdInp any nvwramanl twrm at CondMon of aAy oontrect or other docovent with tsepeot to wf+toh thi4 cwtttlh m or lneyow may be issued Cr fM pertain. the inowsnce afforded by We p0beloo tieser+bwd herein is !vo1ce"*4 the temw e=cWofa and Cond,-Vona of such ppRcias. */►COWL+ , -rs1z�t ac�o_4 • AvTw>«1Is0 ftty 4 TwTNa #4av-�- VINEMORNT EMPLOYFR49 LIABILITY LIMIT INCLUDING DLFCN= COSTS: 31s000.000 PER OCCURFEW ENDORBEMMNT NZGbs ItNTZTUM CERTIFICATE HOLDERG' PQTXCE VMWCTIVE 04r9!i97 1S ATTAR TO AND FORMS A PMT OR THIS POLICY. SPECIMr&N 0=RgpVn4T It 06S ATTACHED. _ . 103 Empur" r lEeM MIC oevaoPft-NT SYMMS L3109 VISTA DEL MAR 3RO FLOOR ww4r.Wo 1PAL08 VERM8 CA 9OE73 CITY OF HUNTINGTON BEACH To Settlement CommitteeO cam^ w =From David C. Biggs, Director of Economic Development�,: m ns Date March 27, 1997 Subject Waiver of Errors and Omissions Insurance -- Economic Development Systems We request your consideration for a waiver of errors and omissions insurance coverage for the Economic Development Systems Agregment with the Redevelo men1 Agency, approval of which is on the agenda for the April 21, 1997 meeting. This waiver is requested because the firm will be providing advisory service only to the Agency on recruitment of retail tenants in privately -owned commercial space. The Agency will not be a party to the leases. We understand the Settlement Committee next meets on April 4 and we would appreciate being advised of your decision as early as possible after the conclusion of your meeting. If you have any questions, please call Stephen Kohler at 5457. DCB:SVK:Ib xc: Stephen V. Kohler, Project Manager GtI l �ece rw birEp �I3 % L� F"C'ePrfJF'V1- eewm'