Memorandum

City of Lawrence

TO:	City Manager and Assistant City Managers
FROM:	Planning Staff
Date:	May 5, 2005
RE:	Recommendation on Consultant selection for Retail Market Study work

Please place the following item on the City Commission agenda for consideration at their May 10, 2005 meeting:

Consulting Contract for Retail Market Study

Background: The revision to Chapter 6 (Commercial Land Use) of HORIZON 2020 took effect in March 2004. This chapter revision established standards for the development and maintenance of a retail market database. Prior to the adoption of this chapter revision, planning staff was maintaining a retail market database using county appraisal information, sales tax information, building permit and site/development plan information. The long-range planner maintaining this database took employment in another city in early 2004, leaving a gap in the updating process of the database. 

HORIZON 2020’s criteria for when a market study is required to be performed are based on commercial center size and/or location. Any new Regional Commercial Center or any new Community Commercial Center in the CC400 [400,000 GSF] category is required to provide market study information to justify that “commercial development shall not occur in advance of market conditions that would support such development…”  Three CC400 commercial center nodal locations are identified in HORIZON 2020; two of these nodes now have submitted commercial rezoning applications with the Planning Department [Northgate @ 6^th and George Williams Way and Bauer Farms at 6^th & Wakarusa Drive].

The need to update the retail market database (and adjust for any changes needed to match the established standards noted above) as well as the need to review the submitted market study information prompted staff to seek assistance from an outside consultant to perform this work.

Status: In April 2005, a Request for Proposals (RFP) was sent out to local, regional and national consultants who specialize in retail database analysis and development. The RFP identified two project phases for the review and update of the retail market database in existence. Phase I included two steps: updating the existing retail market database; and, providing independent reviews of the retail market studies by private developers submitted for Northgate Development and Bauer Farms Development. Phase II, (which may be a part of a subsequently negotiated contract) involved “development of a retail market model to improve or replace the city’s current market study model”. 

Three submittals were received in response to the RFP.  The respondents were:

· Bay Area Economics

· Development Strategies

· Economic Research Associates. 

Proposals included different approaches to Phase I and Phase II work and different allocations of cost to the database update and market study reviews, ranging from $15,000 to $34,850.

A committee of staff from the Finance and Planning Departments reviewed the scope of work, planned approach, and similar work experience/references of each submittal. This process resulted in narrowing the field to one consultant’s proposal. As a result of further discussion and negotiation by staff with this consultant, we have negotiated a contract for services for $17,550.

Requested Action:  Staff requests City Commission approval to enter into a contract with Development Strategies for services to include work on the retail market database and  independent reviews of the market studies submitted by private consultants in support of Northgate Development and Bauer Farms development.  Funding will be provided by the Planning Department’s 2005 operating budget.