HomeMy WebLinkAboutCity Council Committees - Economic Development Corporation - 08/13/1987 (3) ECONOMIC DEVELOPMENT CORPORATION
CITY OF KENT
August 13, 1987
The regular meeting of the City of Kent Economic Development Corporation was
called to order at 7:30 a.m. by Chairman of the Board, Berne Biteman. The
site of the meeting was the Venture Center.
Present: Berne Biteman, Chairman of the Board
Ted Knapp, Board Member
Walt Ramsey, Board Member
Steve Dowell , Board Member
Sandra Driscoll, Corporate Counsel
Tony McCarthy, Treasurer
Marie Jensen, Secretary of the Board
Also Present: Brent McFall , City Administrator
Laurie Murray, Accounting Department
Steve Burpee, KDA
KENT BUSINESS DEVELOPMENT CENTER (VENTURE CENTER)
The minutes of the June 4, 1987 meeting refer to $10,000.00 as the amount of
the loan to the Venture Center. It was noted that the State grant to the
Venture Center was $10,084.00, and that the loan from the EDC was to be a
matching amount. Dowell moved to change the EDC amount to $10,084.00 in the
June 4th minutes. Ramsey seconded and the motion carried.
MINUTES
Dowell moved to approve the minutes of the June 4th, with the change noted
above. Knapp seconded and the motion carried.
KENT DEVELOPMENT ASSOCIATION (KDA)
Steve Burpee stated that KDA had intended to ask EDC for $5,000.00, but that
the figure had escalated to $10,000.00. He pointed out that the new marketing
survey and program had been enlarged to encompass the entire City, broken down
into separate areas: East Hill, West Hill and Valley Floor. The study would
include telephone, direct mail and interview surveys, and would also contain
information as to the employment base of participants in the survey. After
the survey is complete, the project will focus on recruitment of businesses
and on retaining existing businesses. Biteman noted that Kent partially
funded such a survey a few years ago, and questioned whether the project was
completed. It was agreed that some of the information obtained then could
still be of value.
Burpee noted that KDA was working with the Chamber of Commerce, the East Hill
Business Council and the Valley Corridor Group. The City's Planning
Department has already gathered demographic information. KDA will design and
print the brochures after all the surveys are completed.
BUDGET
The budget of the Corporation was then discussed. Treasurer Tony McCarthy
noted that the last bonds were sold in 1986, and revenue was derived from
renewals and from administrative fees, which would be paid over the life of
all the existing bonds. However, the revenue would decline over the years.
1987 income is expected to be about $29,000.00. Expenditures include clerical
expenses, legal and insurance fees, payments: to King County EDC, the B&I
Show and the Venture Center. A proposed budget has been prepared in three
scenarios: Scenario 1 $2,300.00, Scenario 2 $5,000.00, and Scenario 3
$8,000.00. (Amount of money proposed to be spent each year) .
Scenario 3 would put this Corporation out of money in approximately 1996.
Burpee's request, therefore, would reduce the future income. Burpee noted
that this request was not for a promotional project, and that the benefits
would stay with the City. McFall pointed out that the EDC probably will not
issue any more bonds, and that the Board must decide how long it wants the
Corporation to stay in existence, based upon the three scenarios. Driscoll
pointed out that by law, the Corporation does not make rants, but may
contract for services, if such services are aimed towarpossible issuing
of bonds for economic development. McFall noted that EDC could be contracting
with KDA to do this marketing research, which report would be a product
provided back to the EDC. Burpee agreed that invoices for the research could
be presented to EDC, and upon Ramsey's question, he stated that Pulse Research
would do the research, and that attempts were underway to obtain assistance
through an intern from the University of Washington or Pacific Lutheran
University.
Knapp confirmed that the Kent Valley Corridor Association was not officially
organized as yet. He noted that although affiliated with the Chamber of
Commerce, the Corridor Association would have separate funds and it would
network through King County EDC and Team Washington. It was pointed out that
the $6,500.00 appropriated to KDA earlier this month by the City was earmarked
for specific items, such as banners, information center, and so forth.
It was determined that the Corporation should adopt the budget before
considering the request of KDA. The decision should be made as to whether the
Corporation sees itself in a short-term or in a long-term existence. After
some discussion, it was determined that adoption of any of the scenarios could
be changed if conditions change and further, that large sums of money were not
involved. Dowell noted that the KDA request was a one-time request, and he
moved to adopt scenario 3, which would keep the Corporation in existence
probably only until ($8,000.00 per year expenditures). Knapp seconded.
It was clarified that the amount which could be spent each year would then be
$8,000.00. The motion carried.
McCarthy pointed out that funds have already been spent in 1987, and all
agreed that adopting the budget was to establish guidelines. They agreed that
the KDA request could be granted by expending a portion of the 1988 budget.
Upon Knapp's question, Burpee acknowledged that the study will not be
completed until after the first of the year, and that some of the expenses,
therefore, could be deferred until then. He clarified that additional funds
would have to come from the private sector. Biteman pointed out that the
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Corporation had been using the "matching fund" basis, and upon his question,
McFall noted that although the KDA had requested $13,000.00 from the City, the
City only approved $6,500.00, and the Corporation could fund a portion of this
request.
McFall pointed out that if the Corporation contracted for the survey service,
it could be stipulated that KDA and their consultants would be required to
meet with the Planning Department staff and give assurance that data which
would be important to the City and to EDC would be incorporated into KDA's
study. Dowell moved to approve the KDA request for $10,000.00. Ramsey
seconded and the motion carried. McCarthy noted that the figures in scenario
3 of the budget should be changed to show that the promotion expenses for 1987
are $13,000.00 and to show that the Incubator figure was increased in the
amount o 8 .00 as shown on page one of these minutes. It was agreed that
the Corporation should make the public aware as to how funds are spent and
also that Corporation funds are limited.
At the request of the Board, Driscoll noted that because Economic Development
Corporations were formed as a vehicle for issuing industrial revenue bonds,
they are limited. They are governed by the federal tax laws and are subject
also to State laws. The State allows issuance of IRBs, but the federal tax
laws still limit this to contracting for services for the stated purposes of
an EDC.
Knapp noted that U.S. West was looking for a site for a facility and their
search had been narrowed down to three states, including Washington.
Washington has submitted six sites, one of which is in Kent, and U.S. West
representatives will be here on Monday to look over the area. There was no
further business, and the meeting adjourned at 8:35 a.m.
Marie Jensen
City Clerk
Secretary,to the Board
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: - gA2,1g7
--7 Y
Downtown
Association
August 12, 1987
TO: Kent Economic Development Corporation
FROM: Steve Burpee
President
Kent Downtown Association
SUBJECT: Request for $10,000 for funding of a marketing survey and program
KDA, in conjunction with the City of Kent, Kent Chamber of Commerce, East
Hill Business Council and the Kent Valley Corridor Association, is planning
a comprehensive marketing program aimed at recruiting new businesses, re-
taining our present business base and promoting property development.
• The first step is to develop the necessary tools for a professional present-
ation. The City of Kent's Planning Department has and continues, to gather
demographics. The next step is to conduct a survey of the Kent residences,
Valley employment base, and Kent businesses as to their attitudes, views,
perceptions, shopping patterns and needs, and demographics. Once compiled
and analyzed, this information will be made available to all participants
and their specific pxograms.
The next step for KDA is to develop a marketing presentation for recruiting
specific target businesses and encourage property development. We will
also design a brochure promoting downtown as well as all of Kent.
The value of this approach allows us to look at Kent as a whole, then focus
on our individual business community needs. We will know how we compliment
each other and how we are distinct . It is hoped to have everything complete
by December lst.
Thank you for your time and consideration.
Sinc ly,
eve Burpee
Kent Downtown Association
P.O. Box 65 • Kent, Washington 98032 • (206) 854.1770
Pulse Research
MARKET RESEARCH PROGRAM
FOR THE
KENT DOWNTOWN MERCHANTS ASSOCIATION
business survey
-------------------------------------------------------- - -
RESEARCH OBJECTIVES:
--------------------------------------------------------•-
1. To provide the Kent Downtown Merchants Association wili,
market based information regarding the local merchanLi
views, needs and concerns. This will offer the: ba L_. l w-
determining and prioritizing appropriate area impr��voww&i l-
and the businesses degree of willingness and ability c
support area improvement.
2. To identify specific cohesive marketing opportu ni t- ion i
the downtown Kent business community.
-----------------------------------------------------------------
SPECIFIC AREAS OF RESEARCH FOCUS:
1. MARKET NEED:
a. Determine the concerns of the current busine=nswLz
within downtown Kent.
b. Identify the business priorities for area impravE_wahl.
C. Identify city, county and chamber business support
needs.
• d. Determine future growth plans of current businunnow.
2. MARKET SATISFACTION:
a. Identify positive attributes of the Kent downtown
area for local business from the view of the
business operator.
b. Measure current levels of satisfaction with county
and city services, area maintenance, beaut i f i cat i u,-,
and promotion (both individual and area promotion. )
3. MARKET POSITION/MARKET AWARENESS:
a. Evaluate business support for unified maintenance,
beautification and poomotiona1 campaigns.
b. Estimate willingness to financially support aona
improvement.
3. DEMOGRAPHICS:
a. Determine the universe demographic base rc:latlny to
existing businesses in the Kent downtown area;
i. e. size, age, type of business and current
community involvement.
1. Identify market segments that represent the
best opportunity for business support of
a defined Business Improvement Area.
4, PROMOTIONAL STRATEGIES:
Determine business support for specific promotion=,1
strategies; i. e. sales, events, area theme?, and
local vs regional promotion.
•
Pulse Research
Pulse Research
MARKET RESEARCH PROPOSAL
FOR
VENT DOWNTOWN MERCHANTS ASSOCIATION
shopper survey
----------------------------------------------------------- -- - ---
RESEARCH OBJECTIVES:
-------------------------------------------------------------------
1. To provide the Kent Downtown Meochants Association with
market based information regarding Kent' s residential
community, their current shopping patterns and needs.
To identify specific market opportunities for Kent'.:
downtown business community.
2. To provide a profile for the downtown business community
of the total primary market area and of geographic
residential segments within. Provide a detailed outline
of the downtown area advantages and opportunities coop
arative with peripheral shopping area.
SPECIFIC AREAS OF RESEARCH FOCUS:
-----------------------------------------------------------------
1. MARKET NEED:
a. Determine the needs of the current and pwtinLi"!
• shopper - if and how they are currently beinLj
satisfied and what would encourage increased
shopping in downtown Kent.
b. Identify shopper related purchasing patterst�
and habits.
C. Identify community support for additional bus,,-o— wL
or services.
2. MARKET POSITION/MARKET PERCEPTION:
a. Determine the market position of Kent' s dowwLw". ,
business community and of outlying shoppinU ar .
ie. frequency of shopping downtown (neighl.aoiwhQ"_
services vs traditionally regional business)
b. Identify community perceptions of the Kent
shopping area. ie. crime, cleanliness, convoniw„c_v ..
b. Evaluate competitive strengths and weakne<s:.e_s.
3. DEMOGRAPHICS:
a. Determine the universe demographic base relat ,nq A,
existing and potential customers.
1. Identify market segments that represent lh,.
best opportunity for, the promotion of thL-
Kent area and its downtown business co muk o .
4. PROMOTIONAL STRATEGIES:
a. Identify support to specific promotional idea".
i. e. events, area theme etc.
b. Determine effective promotional strategies Foi-
downtown as defined by market needs, perception,-
and media penetrations.
Pulse Resean h
r
-- ------- -- --.----. --------------------------------- - - - -
UNIVERSE DCFINITION: ,
i. Geographically defined residential areas within
local vicinity. Kent' s primary market area.
--------------------------------------------------------------
SAMPLE SIZE:
-----------------------------------------------------------------
1. Quota sample selected on a random basis from th.:
King County Cale directory on a random basis.
a. Quota to be determined from each market seyinW nL
2. Sample sizes:
a. 400 completed surveys
(allows for 100 sample 4 area breakdown)
b. Quota completed from primary/secondary market,
utilizing census tracts and obtaining oatuhik. j
ratio as segment popblat ion to defined uni WE?i' so.
------------------------------------
RESEARCH DESIGN:
1. Maximum 20 minute phone interview - (Est. •-75 drat" finid)
Estimated interview time to obtain stated objectiveE.
additional interview time or sample will effect cost.
E. Survey data collection by phone.
• PULSE RESEARCH SERVICE DEFINED:
1. Pulses Research service provided :
a. Assist client with specific definition of marketing
and market research objectives. *
b. Develop custom questionnaire with client. *
C. ProbaBility random sample definement. *
* Pulse Research will be available for they necessary
committee meetings from survey design to data
analysis.
d. Phone survey data gathering
1. pre-test survey review
e. Qualitative survey review and 10% random call
verification.
f. Tabulation of the survey.
1. Data entry for cross-tabulation capab i 1 i t i n,_
2. Produce pre-identified cross-tabulaticono For
demographic profiling• in initial report.
3. Computer tabulation and produce raw data report
g. Survey results.
1. Provide client with formal presentation
of the results of the survey in unabridged
reference format.
g. Summary report.
preliminary sub-committee report presentation
followed by full committee report as needed
• (copies made for key decision makers)
1. Provide client with aummary cup Drt
survey highlights including specific prow-
recommendations based upon the research d it
---
__------------------------------------ ----
approximately data entry field of 75 elements. Additional survey
length could Effect cast-.
cost breakdown:
minimum 200 sample survey
(limited cross-tabulation ability without loss of validity)
maximum 2 segment breakdown. . . . . . . . . . . . . . . . . . . . . . . . . . . 12000.
(still includes qualitative review standards)
each additional 100 sample. . . . . . . . . . . . . . . . . . . . . . . . . . . . 900.
recommended data base 400 with report for 4 segments as
well as total sample
( includes significant crass-tabulation capabilities withi:,
total sample)
total cast for recommended sample. . . . . . . . . . . . . . . . . . . . .
2. Terms:
a. 50% at start of research
b. Balance on presentation of survey results
• TIMETABLE: __---
------------------------------------------------------------
1. Finalize research goals: Onjoyi-
a. to be comp1eted _s K%7
2. Preliminary questionnaire:
a. completed by ____
----------------------
3. Finalize questionnaire:
a. completed by -__-__
4. Start phone calls:
a. start on
5. Finish phone calls:
a. phoning finished..........................
6. Presentation of survey results and rexcommendat i��'r�w.
a. ----/V rJ[>_ 7_/-q g-2--------
approximate time spar) fron finalized questionnaire
to presentation of survey results 6 to 8 weeks.
•
4
KENT RECEIVEd
Downtown JUL 1 1987
Association CITY ADMINISTRATION RECjIVLrQ
JUN
June 15, 1987 CITY ADMINISTRATION
TO: Brent McFall Administrator
City of Kent T/a
7
FROM: Kent Downtown Association ,
Steve Burpee, President
SUBJECT: Funding support for KDA
The Kent Downtown Association would like to request from the City of
Kent, $13,000 to help fund our 1987-88 plan of action (see attachment) .
KDA feels it is critical, at this time, to move forward with an aggressive
marketing plan. Our current plan is very comprehensive. Not only are
the retailers and businesses committing to an aggressive advertising
and promotion plan, but one that will address business recruitment and
retention, as well as property development. , We .f!Bel that after this
• year, KDA will be totally self-sustaining. In order to insure this,
we must move forward with this plan of action.
The importance of Downtown to the Kent Community is unquestioned. The
City of Kent has clearly demonstrated their support. The City's interest,
efforts and cooperation is greatly appreciated. We hope you will continue
to support our efforts as we run the last leg of this important race.
Our Marketing/Economic Development Committee is currently drafting their
plan. They have three primary goals:
1 . Seek new businesses, primarily retail, for the Downtown area.
2. Retain current business in Downtown.
3. Encourage and assist property development. A marketing presen-
tation is being developed that will include market research
and demographics; survey results of shoppers, businesses and
residents; and lists of property owners and developers who
are willing to work with prospective new businesses to provide
quality locations and buildings. These efforts will be aimed
at target groups who run successful businesses in other parts
of Puget Sound. This will provide a better mix of retail goods
and services in Downtown.
Thank you for your time and consideration. If you have any questions,
please do not hesitate to call me at 852-8195.
. cc: Mayor Dan Kelleher
Kent City Council
Downtown Task Force
Kent Downtown Association
P.O. Box 65 • Kent, Washington 98032 • (206) 854.1770
KENT DOWNTOW14 ASSOCIATION'S
1987 MARKETING AND ADVERTISING PLAN
This is a coordinated marketing and advertising program designed to increase
sales and market share for all downtown businesses. In addition to improving
profits, the successful implementation of this plan will have the additional
benefit of increasing the sales tax revenue base to the City of Kent and making
Downtown Kent a better place to shop and do business.
The key to this comprehensive plan's success is the support and committment of
each downtown business. The committment is in time, energy and money. Comm-
itting the time to plan and evaluate this program throughout the year creates
an opportunity for each business to be successful.
The plan contains the following objectives:
* Establish a year's plan of action with a time table, budget and a list
of all community events and shopping periods.
* Create awareness and a positive, unique image of Downtown Kent.
* Communicate to target audiences the downtown business mix, parking
availability and locations, common hours, plus special events and
promotions.
• * Provide a basic framework for each business to coordinate with.
* Reduce media costs by making a "group buy".
* Promote friendly service and our relaxed shopping atmosphere.
* Create new customers while also re-energizing current customers.
* Promote convenient location and accessability.
* Support business retention and recruitment efforts.
* Establish consistency, continuity, frequency, and identity in Downtown
Kent's advertising and promotions.
This plan will focus initially on the print media. In addition, KDA will use
radio, billboards, direct mail and specialty advertising. Following is a brief
description of our plans for each media. Plans will be updated and evaluated
on a ongoing basis.
NEWSPAPERS: KDA will purchase 15 institutional ads to be run over the
course of the year. They will be used to promote special events such
as Saturday Market; directory of KDA businesses; support for special
shopping events; create awareness of parking availability and locations;
create awareness of common shopping hours; etc. Also, seven full page
ads or 'box page' ads with a headline banner will be run. Each KDA
member will have the opportunity to purchase individual ads to be located
within the page at the lowest rate available from Valley Daily News. Four
special tabloids will be produced with VDN donating the front page and one extra
color.
e
RADIO: To improve the reach, frequency and consistancy of our plan and
reinforce the newspaper ad§, it is hoped to put together a radio plan
• similiar to the newspaper with KDA purchasing institutional spots and
making 30 and 60 second spots available to KDA members at a reduced rate.
Radio can also offer promotional support to our special events.
BILLBOARDS: Two month-long campaigns will be run, one in August and the
other from November 15th to December 15th. Each run will consist of 4
billboards at various locations that have high traffic counts. In add-
ition, Steve Dowell has donated the use of his billboard located on Kent-
Kangley Rd.
DIRECT MAIL: A mailing list will be secured for the use of all KDA members.
We will mail twice a year to 20-25 thousand households and members will
use the same list for their own promotional purposes. It is anticipated
that coupons will be included in each mailing.
SPECIALTY ADVERTISING: We will continue the use 6f shopping bags, coffee
cups, bumper stickers and window decals.
To further the scope and identity of Downtown Kent, we will purchase an addi-
tional 24 banners to be hung on Central Ave. , Willis St. , and other key locations.
A person will be hired to be our "Town Crier". This person will have a cart
for swe.9Pinq up leaves and trash from our sidewalks and serve as our "goodwill
ambaszador•. It is anticipated this person will work 50 hours per month for
9 months.
KDA will have a booth at the Saturday Market to promote Downtown. It will con-
sist of a popcorn wagon with a KDA sign and will provide KDA and member's
promotional materials to Saturday Market shoppers.
The glass but in Mark's Square will be rented to be used as an information center
and headquarters. It can also be used to house the City Coordinator, provide
holiday gift wrapping services, display art work from local sources, and any other
purpose KDA deems beneficial.
Additional marketing efforts will be to develop a brochure to be used to create
awareness of Downtown's benefits to new residents and in the 'recruitment of new
businesses. Also a survey of businesses and Kent residents will be conducted to
gather information and demographics needed to support our efforts in business
recruitment and retention as well as property development. Last, we will work
with the Chamber, King County Economic Development Council, Kent Valley Corridor,
and the City of Kent to ensure cooperation and communication in accomplishing
our common goals.
These efforts, along with the cooperation and involvement of the business
community in Downtown will provide the opportunity for all businesses to be
successful.
• B U D G E T
Expenses
Newspaper 15 institutional ads 2,400
Radio 5,000
Billboards 8 at $450 each and $1,000 for production 4,600
Direct Mail 40,000 mailings at 200 each 8,000
Specialty Advertising 850
Saturday Market Booth 250• -/
Town Crier 50 hrs. per month for 9 months 1,8001 S,
Information Center $175 per month plus utilities 3,300
New Banners 24 at $200 each 4,800
Brochure 1,000
Committees - Executive 500
Marketing 1,000
Beautification 6 Design 500
Administration mailing, printing, conference fees, etc. 2,000
$36,000
Income _
Membership Fees 30 retail 40 business 7,500
Fundraising 10,500
City of Kent 13,000
Kent EDC 5.000
$36,000