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HomeMy WebLinkAboutOrdinance 4682 ORDINANCE NO. 4682 AN ORDINANCE WAIVING THE REQUIREMENTS OF FORMAL COMPETITIVE BIDDING AND APPROVING A CONTRACT FOR SERVICES WITH FAYETTEVILLE DOWNTOWN PARTNERS IN THE AMOUNT OF $150,000.00 TO ASSIST IN THE IMPLEMENTATION OF THE DOWNTOWN MASTER PLAN. WHEREAS, Fayetteville Downtown Partners is the only organization that currently exists that represents the entire area that is included in the Downtown Master Plan; and, WHEREAS, Fayetteville Downtown Partners is therefore, uniquely qualified and capable of performing the identified contractual services for the City of Fayetteville. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council of the City of Fayetteville, Arkansas hereby finds that such circumstances constitute an exceptional situation where competitive bidding is not feasible or practical, and waives the requirements of formal competitive bidding and hereby approves a contract for services with Fayetteville Downtown partners in the amount of $150,000.00 to assist in the implementation of The Downtown Master Plan. A copy of the contract for services is attached hereto marked Exhibit "A" and made a part hereof. PASSED and APPROVED this 1st day of March 2005. E APPROVED: -s.a' 'C\T Y O sG� : FAYEITEVILLE ; '- By: R DA OODY, Mayor ATTEST: '.9J y !fq NS 60 Jam; By: � a� SONDRA SMITH, City Clerk 0 9 CITY OF FAYETTEVILLE CONTRACT FOR SERVICES This agreement is entered into on this 1 " day of March 2005, between the City of Fayetteville, hereinafter known as the City and Fayetteville Downtown Partners (currently operating under Downtown Dickson Enhancement Project, Inc. , an Arkansas not-for-profit corporation) hereinafter known as FDP. This contract is for services to be provided during 2005. Whereas; the City of Fayetteville has established goals and guiding principles supporting the downtown district by adoption of the Fayetteville Downtown Master Plan . Whereas; the City has determined that a public need exists to assist the City in implementing the master plan in specific areas such as adopting new building design standards for the district, establishing funding mechanisms to assist property owners in implementing street building facade improvements, providing additional services to the district, creating a downtown strategic marketing plan, developing a downtown housing plan for all economic levels, supporting the sustainable growth of the downtown economy, establishing the creation of an Arts and Cultural District, among other goals and objectives that support the downtown area. Whereas; FDP has developed a business plan and structure for the organization with the mission to ensure the vitality of a dynamic downtown area through economic development initiatives, capital improvements, and effective marketing of the district. Whereas; FDP is uniquely qualified and capable of assisting the City in carrying out the objectives of the Downtown Master Plan. Now, therefore, in consideration of the mutual covenants contained herein, the city and FDP agree as follows: 1 . The agreement will begin on the date first written above. 2. FDP agrees to perform the following services for the City of Fayetteville. a. Develop funding mechanisms - FDP will continue to investigate and implement funding mechanisms to create a sustainable organization without sole reliance upon the City's General Fund by 2007. The mechanisms may include, but are not limited to, business improvement districts, grants from public and private sources, tax credits for private development, private donors and events. b1 . Identifying the feasibility of a Business Improvement District— In 2005, FDP will initiate Phase I of a three-phase process to form a Business Improvement District. Phase I is anticipated to take 6-9 months. This includes: Hiring a BID consultant for Phase 1 by April 1s` to facilitate the necessary steps FDP will need to implement a successful and sustainable B. I . D. Identifying the feasibility of creating a B. I . D. through the development of a Situation Analysis 0 0 • Developing an accurate database of property within the study area, including variables such as property ownership and assessed value, contact names for each parcel and current and future development plans Forming a 10-20 member Project Steering Committee that will include major stakeholders representing public and private property owners and key civic leaders Producing a Feasibility Report that will be prepared in partnership with the B. I. D. consultant, which will provide the steering committee the information needed to move forward on the creation of the B. I.D. Facilitation of Stakeholder Focus Groups, which will identify priorities for specific district services Facilitation of Public Sector Meetings Developing marketing and outreach materials to inform property owners about the process of forming a B. I. D. and the subsequent benefits b2. Implementing a Business Improvement District plan — If formation of a B. I. D. is feasible, FDP will begin to execute a plan with the goal of full implementation by December 21 s`, 2006. c. Festival coordination — FDP will continue as producer of the Fayetteville Fine Arts Festival (FAF), currently held the second weekend of September. d. Development Resource Center (DRC) — With the assistance of the University of Arkansas MBA Spring Partnering Program, FDP will establish an in-house business resource database of information about the district. This center will include, but is not limited to, a current real estate inventory and economic demographics, as well as other items deemed necessary in order to recruit and maintain a healthy downtown business climate. FDP will provide this information in a written report by November 2005 and implementation of the DRC will begin by June 2005. e. Banners — FDP will be responsible for coordinating the installation of banners on light poles and across Dickson Street. FDP will work with the city to develop a banner policy and the organization will implement that policy no later than April 2005. f. Marketing — FDP will assist in developing a strategic marketing plan and image for the downtown district that is consistent with the overall image campaign for the City of Fayetteville and the Advertising and Promotion Commission. FDP will coordinate these efforts and provide a progress report during a City Council agenda session in November, 2005 g. Other Initiatives — FDP will continue to provide leadership in the following areas: • Economic coordination — FDP will work with Chamber of Commerce, the Fayetteville Economic Development Council, the University of Arkansas, the Advertising and Promotion Commission, city staff and elected officials, merchants, artists and business leaders to help ensure the continued growth of the downtown area and of Fayetteville. • Downtown master plan — FDP will provide assistance to the City planning department in the facilitation of public meetings and public relations in reference to items such as code and zoning changes. FDP staff and/or board members will meet with City staff and/or elected officials at least once per month in order to coordinate efforts to implement the Downtown Master Plan. • Cultural Arts District Initiative — FDP will take the lead in developing a strategic plan to organize and nurture a cultural arts district to advance the overall economic growth of Fayetteville and enhance the city's quality of life. This will include, but is not limited to, assisting in the formation of an artist association, identification of our cultural amenities, participation in the revision of the downtown codes, and the definition of the cultural boundary. Attainable Housing - FDP will continue to explore and identify viable projects that forward the city's goals regarding attainable housing in the downtown district including research, grassroots coordination and project management. 3. FDP will provide written documentation and offer a verbal presentation to the Mayor and City Council during an agenda session at the convenience of FDP three times a year in April, August and November to delineate accomplishments undertaken during the preceding period on the services pursuant to paragraph 2. 4. To make available all records for review by the City and City auditors as requested. FDP agrees to comply with the Arkansas Freedom of Information Act as applicable. 5. For the purpose of this agreement, the project coordinator for the city will be Tim Conklin. The project coordinator for FDP will be interim administrator Daniel Hintz until the permanent director is hired. Communications pertaining to this agreement will be through the respective project coordinators for the City and FDP. 6. FDP will hold harmless, defend, and indemnify the City from any and all claims, actions, suits, charges and judgments whatsoever that arise out of the performance or nonperformance of the services or subject matter of this agreement. 7. Budget — The City agrees to pay FDP up to a total of $ 150,000 and separated into two payments of $100,000 to be paid by April 151 and $50,000 to be paid by September 1S' of 2005 8. FDP will render the City a request for payment as stated in this contract under line Item 7 and the City will pay the invoice within 30 days of receiving the invoice in the City's accounting division. IN WITNESS WHEREOF, City and Consultant have caused this instrument to be signed by their respective duly authorized officers, all on the day and year first above written. ATTEST: FAYETTEVILLE DOWNTOWN PARTNERS Np—t� Sha oover, President ATTEST: r- 6 � CITY OF YETTEVILLE �rf7- fl,, rvu f Mayor Dan Coody Y pF.G�. FAYETTEVILLE ; ',sy KANS •J �, 'I'll TON G� uuul" Ord • 3// �0S Tayetrli ARKANSAS 125 W. Mountain St. THE CITY OF FAYETTEVILLE, ARKANSAS Fayetteville, AR 72701 PLANNING DIVISION CORRESPONDENCE Telephone: (479) 575-8267 TO: Mayor Dan Coody Fayetteville City Council FROM : Tim Conklin, Director of Planning and Development Management DATE: February 22, 2005 SUBJECT: Approval of a Contract and Bid Waiver Ordinance for Fayetteville Downtown Partners in the Amount of $150,000 RECOMMENDATION Staff recommends approval of a contract and bid waiver ordinance for Fayetteville Downtown Partners in the amount of $ 1501000. Fayetteville Downtown Partners (FDP) is uniquely qualified and capable to perform the identified contractual services for the City of Fayetteville. Fayetteville Downtown Partners, formally known as Downtown Dickson Street Enhancement Project (DDEP), recently reorganized with its primary mission to assist the City in the implementation of the Downtown Master Plan. This is the only organization that currently exists that represents the entire area that is included in the Downtown Master Plan. BACKGROUND The City Council approved a line item in the 2005 budget to contract with Fayetteville Downtown Partners. Downtown Partners has developed a three year interim business plan with the goal to become self sufficient within three years with reduced City funding over the next two years. This funding request will be the primary source of funding for FDP to hire an executive director to carry out the scope of services that are included in the contract. Specifically, the Downtown Master Plan recommends that DDEP be transformed into a Business Improvement District. FDP potential long term funding strategies include providing contract services to the City and others that would support FDP. FDP has already started the search for an executive director and anticipates filling this position by April, 2005. BUDGETIMPACT The City Council reviewed this request for funding in the 2005 budget process as part of the non-profit funding requests and approved it as a line item in the adopted 2005 budget. • i ORDINANCE NO. AN ORDINANCE WAIVING THE REQUIREMENTS OF FORMAL COMPETITIVE BIDDING AND APPROVING A CONTRACT FOR SERVICES WITH FAYETTEVILLE DOWNTOWN PARTNERS IN THE AMOUNT OF $150,000.00 TO ASSIST IN THE IMPLEMENTATION OF THE DOWNTOWN MASTER PLAN. WHEREAS, Fayetteville Downtown Partners is the only organization that currently exists that represents the entire area that is included in the Downtown Master Plan; and, WHEREAS, Fayetteville Downtown Partners is therefore, uniquely qualified and capable of performing the identified contractual services for the City of Fayetteville. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1 . That the City Council of the City of Fayetteville, Arkansas hereby finds that such circumstances constitute an exceptional situation where competitive bidding is not feasible or practical, and waives the requirements of formal competitive bidding and here A ',ail es a contract for services with Fayetteville Downtown partners in the amount of$15 = k©`0 0 t ssist in the implementation of The Downtown Master Plan. A copy of the c � l • ct fo services is attached hereto marked Exhibit " A" and made apart hereof. s � s PASSED and APPROVED this 151 day of=.M rch 2005. j t APS ; . ` 11 D: 1 B>Y` j a �` DAN C17 , Mayor ATTEST: / J By: SON°rA SM = � erk City of Fayetteville Application Form REQUEST FOR PUBLIC FUNDS FOR CALENDAR YEAR 2005 1 . Organization: Name, Address, Telephone & Fax: Fayetteville Downtown Partners 230 North Block Avenue P. O. Box 3573, Fayetteville, AR 72702-3573 479-571 -3337; fax 479-5714169 A. Is this a non-profit organization? Yes B. Tax-exempt status and Federal ID Number: 501 (c) (3) 71 -0800252 2. Project Director: Name, Address, Telephone & Fax Eileen Roufa, Interim Administrator Sharon Hoover, President Leslie Belden, Vice President Steve Davis, treasurer Terri Trotter, secretary Same address, telephone and fax as above 3. Title, Date, Goals and Brief Description of Project Fayetteville Downtown Partners (FDP) is a non-profit organization spawned from Downtown Dickson Enhancement Project (DDEP) in May 2004. FDP is devoted to ensuring the vitality and healthy growth of downtown Fayetteville. Whereas DDEP facilitated the collaborative effort of non-profit, private and public entities to fund improvements on Dickson Street, Fayetteville Downtown Partners is poised to broaden those efforts while continuing to improve the value of Fayetteville's downtown assets. Fayetteville Downtown Partners will: 1) Manage the Downtown Master Plan through identification of projects and promotion of guidelines set forth in the Downtown Master Plan; 2) Investigate various funding mechanisms such as Tax Increment Financing districts, Business Improvement Districts, and grant monies for projects such as public infrastructure, street and landscape maintenance, and district-wide marketing efforts; 3) Provide design assistance and infill strategies to meet the recommendations of the Downtown Master Plan, in particular along College Avenue, Archibald Yell Boulevard, and West Avenue; 4) Advocate for high diversity housing developments; 5) Develop a branding and image strategy for the district that utilizes our cultural assets and promotes downtown Fayetteville as the "experience" destination of Northwest Arkansas; 6) Promote and produce events and festivals that meet our mission to promote downtown Fayetteville; 7) Serve as district coordinator among various groups within the district such as the merchants' association, the neighborhood associations, and others to ensure that the downtown image and message are consistent; 8) Maintain a current real estate inventory and data as we recruit and retain downtown businesses; 9) Develop a Small Business Investment Corporation program to assist small businesses in their expansion and capital improvement projects by providing access to low-cost loans and financial incentives. 10) Initiate an affordable housing project in the district 11) Serve as the as the project coordinator for a parking facility in the district 7 - 29 m . O and , m•_ _ e,., �: :O_ f a ._ _ _ _v Ile• _;. O,R Value of Cash from Other Sources: $479000. Total Project Cost: $245,000. (Value of In Kind Match from Other Sources: $25,000.) 5. Proposed Funding Period (from) January 1 , 2005 (to) December 31 , 2005. Will project cross calendar years? X Yes 6. Describe the mission and history of your organization, including current funding In early 2004, as the Dickson Street streetscape project was completed, DDEP dissolved in order that the new Fayetteville Downtown Partners could emerge and adopt the larger mission of managing the Dover Kohl Downtown Master Plan. FDP benefits from the knowledge gained in the successful implementation of the Dickson Street improvements while being tempered by the shortcomings of the former organization. FDP has redefined the mission to align itself with the Downtown Master Plan and the capacities of our downtown partnering entities and institutions, to include but not limited to the City of Fayetteville, the University of Arkansas, the Fayetteville Chamber of Commerce, the Council of Neighborhoods, the Fayetteville Economic Development Council, the Walton Arts Center, the newly forming Merchants' Association, the Fayetteville School District, the Fayetteville Public Library, the Fayetteville Housing Authority, developers and financial institutions. Fayetteville Downtown Partners envisions a downtown district that is a lively, safe and unique area in which to live and work, as well as a compelling destination to visit. The FDP mission is to ensure the vitality of a dynamic downtown area through economic development initiatives, capital improvements, and effective marketing of the district. The FDP goals are: a. To lead in the implementation of a comprehensive plan for shaping the infrastructure of the district to impart a compelling sense of place and identity; b. To develop and apply a cohesive promotional strategy to establish the district as the prem:' cultural and entertainment destination in Northwest Arkansas; c. To encourage mixed use development and adaptive reuse and promote historic preservation; d. To support a healthy and diverse mix of businesses within the district; e. To promote healthy and unique downtown living; f To promote and encourage the unique atmosphere of the district. No City of Fayetteville funds were issued to FDP for the 2004 year. Funding of FDP through August 2004 was derived from two major sources: private donation and fund-raisers (Banners on Dickson Street; 2004 Northwest Arkansas Designer House; and Fayetteville Fine Arts Festival). Other funding sources in 2004 were the Fayetteville A&P Commission and in-kind donations. 7. Describe the persons or groups who will benefit from your project, including the estimated number of people served. As Fayetteville's historic center continues to flourish, all citizens of and visitors to downtown Fayetteville will benefit. Public improvements, diverse housing projects, and other economic initiatives within the district will generate a return on investment through increased sales, HMR and ad valorem taxes far in excess of investment. 8. Describe how your project will be evaluated. We expect to be evaluated each year by our funding entities. A strong active FDP Board meets to review progress, priorities and programs. A formal accounting audit will be completed annually by an outside local accounting firm. 7 - 30 2 2005 proposed budget Expenses director search, director salary for 9 months, $ 111 ,750. Interim director ( Jan - February),grant writer, consultants $ 17,800. Education / conferences $ 5,000. Rent /office $ 6,400. Equipment $ 2,500. Events $ 4,950. Utilities $ 1 ,600. Staff salary ( festival coordinator, consultants -part of the year) $ 80,000. Miscellaneous $ 15,000. $245,000. Revenues Membership dues $ 125000. Donations $ 35,000. 1 In kind ( accounting WAC printing Misc425 000 ( HRR# iCmfv17t: • APPlicant agrees to comply with all State and City purchasing policies and procedures (available from City Purchasing Off m) • Applicant cer6fws that project %ju comply iviih aU nondiscrimination statues and %iU be fully handicapped accessible Name of Applicant Sharon Hoover. Date_ Signature of Applicant dL Title. President Organization: Fayetteville Downtown Partners 7 - 31 3 DRAFT INTERIM BUSINESS PLAN Three Year Proposal October 12, 2004 FaY ettevi I le am uw , Partners Interim Business Plan DRAFT Three Year Proposal TABLE OF CONTENTS Executive Summary 3 ServiceOffering ........................................................................................................................ 3 Executive Director and Staff..........................................:........................................................ 3 FundingRequirements ....................................................................................................t....... 3 Section One — Business Concept 4 OurVision.................................................................................................................................. 5 OurMission ............................................................................................................................... 5 OurGoals.................................................................................................................................. 5 DowntownMaster Plan ........................................................................................................... 5 Offerings .................................................................................................................................... 6 Possible Offerings/Long-range Initiatives............................................................................. 7 Possible Organizational Structure......................................................................................... 7 Section Two — Expenses and Funding g ProjectedExpenses............................................................................................................... 10 FundingOpportunities ........................................................................................................... 11 Short-Term Funding ...........................................................................................................12 Long-Term Funding ............................................................................................................12 Section Three — Foundations of the Organization 14 Boardof Directors .................................................................................................................. 14 Executive Committee .........................................................................................................14 BoardMembers..................................................................................................................14 Ex-officio Members ............................................................................................................15 DesignCommittee.................................................................................................................. 15 MarketingCommittee............................................................................................................. 16 Festivals................................................................................................................:.................. 16 PromotionsCommittee.......................................................................................................... 16 Merchants' Association ......................................................................................................... 17 UniversityResources............................................................................................................. 17 MBAPartnering Project.....................................................................................................17 Center for Business and Economic Research ...................................................................17 UA Facilities Management.................................................................................................18 UACommunity Design Center...........................................................................................18 Section Four — Our Plan for the Future 19 FAYETTEVILLE DOWNTOWN PARTNERS 1 OCTOBER 12, 2004 Interim Business Plan DRAFT Three Year Proposal Executive Summary PhaseOne - Startup.............................................................................................................19 InterimDirector...................................................................................................................19 Initiate Grant Research.............................................................................................:........20 Phase Two— Executive Director Search...........................................................................20 Executive Director Search Committee...............................................................................20 Phase Three FOP As An Ongoing Concern...................................................................21 GrantWriter........................................................................................................................21 MarketingCoordinator........................................................................................................21 Administrative Assistant.....................................................................................................22 Costs and Fees Estimate............................................................................................23 Appendix A- Downtown Development Organizations 24 International Downtown Association...................................................................................24 Example One - Center City Commission -Memphis, Tennessee................................24 Example Two- Downtown Lincoln Association- Lincoln, Nebraska ...........................25 Example Three- Capital City Development Corporation- Boise, Idaho.....................26 Example Four - Downtown Partnership- Little Rock, Arkansas...................................26 Appendix B - Possible Projects -Attainable Housing Funding Sources............................................................... General schedule.............................................................. ADFASchedule................................................................. Things to Consider............................................................ Pre -development Expenses ............................................ 27 FAYETTEVILLE DOWNTOWN PARTNERS 2 OCTOBER 12, 2004 S E1 Interim Business Plan DRAFT Three Year Proposal EXECUTIVE SUMMARY Fayetteville Downtown Partners ("FOP") is a non-profit organization dedicated to maintaining the momentum of the successful Dickson Street project and the newly adopted Downtown Master Plan. The organization is set up to provide nimble and proactive administration of the master plan as a service to the community to ensure the growth of downtown Fayetteville and to enhance the quality of life for all of Fayetteville. SERVICE OFFERING Our services include facilitating the Downtown Master Plan, seeking out private/public development relationships for projects such as parking decks, offering design review assistance, creating attainable housing projects, developing a cultural arts district, producing and coordinating events and festivals in the district--- everything that enhances our downtown experience. EXECUTIVE DIRECTOR AND STAFF FOP is evolving into a full-time service business with a national search for a permanent Executive Director devoted to accomplishing the goals of the Master Plan and executing the mission of Fayetteville Downtown Partners. The director will have a competent staff including a marketing coordinator to manage a comprehensive marketing/events plan, a grant writer to seek funding opportunities, and an administrative assistant to ensure efficient and professional service to our partners, clients and members. FUNDING REQUIREMENTS To transition from a primarily volunteer organization to a full-time service organization, FDP will require funding from several short-term sources before long-term funding mechanisms are in place. Proposed funding requirements for the new staff and services offered are approximately $300,000 annually. Short-term funding will be derived from: • Fees & Donations — Fees from member businesses and gifts from individual stakeholders in the downtown district. • Events & Programs — Fundraising programs such as the Dickson Street banners; Events such as the Fine Arts Festival and Designer House. • City of Fayetteville — Initial funds for the first three years are requested from the City to subsidize the startup costs of FDP and allow the City to avoid the long-term cost of in-house services and staff. • Grants — FOP will research and apply for grants initially using a grant writing agency before hiring a permanent grant writer to seek funding for projects. • BID & Capital Projects — FOP will explore alternative funding mechanisms available including, but not limited to, Business Improvement Districts and parking structure management. FAYETTEVILLE DOWNTOWN PARTNERS 3 OCTOBER 12, 2004 Interim Business Plan DRAFT Three Year Proposal SECTION ONE- BUSINESS CONCEPT Fayetteville Downtown Partners is a nonprofit organization devoted to ensuring the vitality and healthy growth of Fayetteville's downtown district. Where the Downtown Dickson Enhancement Project, Inc. ("DDEP") initiated the collaborative effort of non-profit, private, and public entities to fund improvements on Dickson Street, Fayetteville Downtown Partners is set to expand those efforts and continue to enhance the value of Fayetteville's downtown assets in accordance with the accepted downtown master plan. In addition to streetscape improvements and special projects, FDP will provide coordinated marketing efforts, seek funding for enhanced services and activities, promote growth in residential neighborhoods and mixed -use development, and serve as leader for collaboration among entities serving the district. In late 2003, having completed its enhancement project, DDEP dissolved, and the new Fayetteville Downtown Partners emerged and took on the larger mission of administering the Dover Kohl Downtown Master Plan. FDP benefits from the knowledge and lessons learned in the successful implementation of the Dickson Street improvements. FDP is tempered by the shortcomings of the former organization. FDP has redefined its mission in light of the Dover Kohl Master Plan and the capacities of our downtown partnering entities and institutions. Our partners include the City, the University of Arkansas, the Fayetteville Chamber of Commerce, the downtown neighborhood associations, the Fayetteville Economic Development Council, Inc., the Walton Arts Center, the downtown merchants' association, Fayetteville Public Schools, the Fayetteville Public Library, the Fayetteville Housing Authority, as well as the financial institutions and developers in the area. With these partners, FDP is poised to serve the community as the facilitator of the Downtown Master Plan. In this interim business plan, we provide an overview of the new FDP organizational structure and our mission. We present our planned offerings for the downtown Fayetteville community as we move forward. We also present the challenges we face in implementing our vision. To these challenges, we provide an outline of the costs and resources necessary to fund our efforts and bring the Downtown Master Plan to fruition. This interim business plan serves as a roadmap for FDP's transition from an all -volunteer organization to a full-time non-profit business with the primary focus of serving the downtown area. As the organization navigates this transition, interim funding is required to accomplish startup tasks before long-term funding is established. We are seeking the funds necessary to seed our new organization and accomplish three major hurdles which include 1) maintaining current operating commitments, 2) searching for and hiring an executive director and permanent staff, and 3) funding the initial startup and operating costs through 2005. In March the FDP Board of Directors ("Board") revised its mission to expand its scope to better reflect the direction proposed by the Downtown Master Plan and represent current vibrancy enjoyed by downtown Fayetteville. The former organization ( DDEP) was mentioned by Dover Kohl in Chapter 5 as the group to address several issues in the implementation strategy plan FAYETTEVILLE DOWNTOWN PARTNERS 4 OCTOBER 12, 2004 r 10 Interim Business Plan OUR VISION DRAFT Three Year Proposal Section One — Business Concept We envision a downtown district that is a lively, safe and unique area in which to live and work, as well as a compelling destination to visit. OUR MISSION Our mission is to ensure the vitality of a dynamic downtown area through economic development initiatives, capital improvements, and effective marketing of the district. OUR GOALS • To lead in the implementation of a comprehensive plan for shaping the infrastructure of the district to impart a compelling sense of place and identity. • To develop and apply a cohesive promotional strategy to establish the district as the premier cultural and entertainment destination in Northwest Arkansas. • To encourage mixed -use development and adaptive reuse and promote historic preservation. • To support a healthy and diverse mix of businesses within the district. • To promote healthy and unique downtown living. • To promote and encourage the unique atmosphere of the district. DOWNTOWN MASTER PLAN In a retreat facilitated by non-profit strategist Bill Mitchell, the Board adopted a broadened scope and new name for the organization that more accurately reflects the needs of the district, and Fayetteville Downtown Partners was formed. The new organization identifies the key principles of the City -commissioned master plan by Dover Kohl as its new guiding principles. • A Superbly Walkable Environment • Downtown Living • Smart Parking • Special Places • An Experience Economy FAYETTEVILLE DOWNTOWN PARTNERS 5 OCTOBER 12, 2004 Interim Business Plan OFFERINGS DRAFT Three Year Proposal Section One — Business Concept In accordance with the mission and goals established by the 2004 Fayetteville Downtown Partners Board of Directors and with the recommendations in the Downtown Master Plan, FDP will provide the following services to the community: • FACILITATE the Downtown Maste Master Plan, FDP will assist tie city identification of community projects Downtown Master Plan. • Plan — As recommended in the Downtown in implementation of the Master Plan through and promotion of guidelines set forth in the • FUNDING — FDP will hire consultants to investigate various funding mechanisms such as Tax Increment Financing districts, Business Improvement Districts, and grant monies for projects such as public infrastructure, streetscape and landscape maintenance, security, district -wide marketing, special projects, and operating expenses. • DESIGN ASSISTANCE — Provide pro bono design assistance to small business owners and developers to help them achieve Master Plan design criteria. Assist the city in developing infill strategies for the district. • ATTAINABLE HOUSING — Advocate high -diversity housing developments and develop an attainable housing project as a non-profit development. FOP will identify and create opportunities for high -diversity housing projects within the area. See Appendix B for more details. • CULTURAL DISTRICT DESIGNATION — Hire a branding and image consultant to create a branding strategy for the district that utilizes our cultural assets and promotes downtown Fayetteville as the "experience" destination of Northwest Arkansas • FESTIVALS — Promote and produce events and festivals that meet our mission b promote downtown Fayetteville. We will act as coordinators for other city-wide events to ensure merchants and residents are accommodated during the events. • DISTRICT COORDINATOR — FDP will serve as district coordinator among the various groups within the district such as the merchants' association, the neighborhood associations, Advertising & Promotions Commission, the Chamber, FEDC, the UA, and others to ensure that the downtown image and message are consistent. In addition coordinate events or construction projects to ensure traffic controls meet the needs of the downtown community • REAL ESTATE INVENTORY — Maintain a current real estate inventory and data as we recruit and retain downtown businesses. FDP will work with the Chamber, the Fayetteville Economic Development Council, the City, and the University to recruit new business to the district and will serve as a central resource for real estate inventory and data for the district. • SMALL BUSINESS CORPORATION — Develop a Small Business Investment Corporation program to assist small businesses in their expansion and capital improvement projects by providing access to low-cost loans and financial incentives. FAYETTEVILLE DOWNTOWN PARTNERS 6 OCTOBER 12, 2004 Interim Business Plan D RAFT Three Year Proposal Section One — Business Concept • PARKING DECKS - Serve as the project coordinator for a parking facility in the district and/or build and manage district parking. POSSIBLE OFFERINGS/LONG-RANGE INITIATIVES Our research into the offerings of similar downtown development groups led us to development consultant Paul Esterer. Paul is the CEO of the First Security Vanadis Capital, LLC and has extensive experience working with private and non-profit groups across the United States to - shape their downtown redevelopment efforts. The combined results of our research and Paul's recommendations are a list of various less -than -traditional offerings for FDP to consider further. Some of these opportunities may require the formation of additional entities with different IRS designations in order to operate under the FDP umbrella but should be considered as potential offerings: • Develop creative financial incentives for owners and developers • Buy and sell property for redevelopment purposes • Administer low interest loan programs • Set up an authority to issue tax exempt and taxable bonds for downtown development projects • Coordinate and set up an entity that will build and mange downtown public garages POSSIBLE ORGANIZATIONAL STRUCTURE Role models for these entities are included in Appendix B. One the following page we have included a mockup of a potential organizational structure for Fayetteville Downtown Partners. This represents the direction the Board would like for the new Executive Director to explore and does not indicate the actual form the new organization will take. Recognizing that our vision and goals overlap with other economic development groups in the city, we are working to facilitate group meetings of all entities interested in furthering the downtown experience. Dialogues have begun with the FEDC, the A&P Commission, UA Community Design Center, and the Chamber of Commerce. Additional groups have expressed interest including the UA Small Business Development Center and UA Center for Business and Economic Research. FAYETTEVILLE DOWNTOWN PARTNERS 7 OCTOBER 12, 2004 r -ao- N 0 00 ac OO I U d c N C N N d 3 � m L ' C C 0 C O U 0 N J J F>w uJ LI i Interim Business Plan DRAFT Three Year SECTION Two - EXPENSES AND FUNDING Current fixed expenses are kept to a minimum each month due to the extensive contribution of time from volunteers and board members. Costs include the monthly salary for one staff member (Interim Administrator Eileen Roufa), an office space, and mailbox, and website maintenance fees. These expenses are covered through the end of 2004 by existing FDP funds. ITEM MONTHLY „ y EXPENSE, Interim Administrator salary $3,025.00 Unemployment tax 12.00 Office Lease 300.00 Phone 140.00 Website 75.00 Post office box 6.00 Liability insurance . 42.00 Daily newspaper 9.00 Chamber membership 18.00 Total $3,627.00 Annual Total $43,524.00 To accomplish the goals and provide the services outlined in the previous section, FDP has developed a plan (Section Four — Our Plan for the Future of this document) to bring on a full- time executive director and staff. New employees will add to the annual expenses: POSITION r ANNUAL :..'.._ •..'GROSS;•' ` SALARY:. . Executive Director $93,750.00 Grant $56,250.00 Writer/consultants' Marketing $56,250.00 Coordinator* Administrative $43,750.00 Assistant Annual Total $250,000.00 Salaries include benefits FAYETTEVILLE DOWNTOWN PARTNERS 9 OCTOBER 12, 2004 Interim Business Plan DRAFT Three Year Proposal Section Two — Expenses and Funding As FDP transitions from the current organizational structure to the full-time executive director model, we will incur additional startup expenses in the first year including the cost of an interim executive director and outsourced grant research plus the cost of the executive director search and staff hiring: TASK 2 J EXPENSE *=. Interim Director/Grant $35,600.00 Research Search for Executive Director $25,000.00 Search for Staff $1,500.00 First Year Interim Expenses $62,100.00 PROJECTED EXPENSES Over the next three years, FDP is projecting the following yearly expenses: • •.. -EXPENSES -"� .t 5`� YEAR 1 ' .RY'i f ..i il4xfiv� - YEAR• .° &��'Scbnay %sE YEAR 3 , hnY'k Monthly Expenses (10% increase per year) $43,524.00 $47,876.40 $52,664.04 New Salaries (Exec. Dir. & 3 staff members) $187,500.00 $250,000.00 $250,000.00 Interim Expenses (Interim Dir & Grant research) $62,100.00 0.00 0.00 Totals $293,124.00 $297,876.40 $302,664.04 FAYETTEVILLE DOWNTOWN PARTNERS 10 OCTOBER 12, 2004 interim Business Plan RAFT Three Year Proposal Section Two — Expenses and Funding FUNDING OPPORTUNITIES The primary goal cf FDP is to become self sufficient within three years through various short - and long-term revenue streams. Short-term funding includes 1) revenue from programs and events, 2) donations from private entities, and 3) seed money in the form of a grant from he City of Fayetteville. Long-term funding will reduce the amount of City funding required by increasing revenue from 4) state and federal grants and 5) other funding mechanisms such as Tax Increment Financing funds, Business Improvement Districts and other revenue generating ventures such as construction and management of parking structures or attainable housing projects. The immediate need for funding will be achieved through private donations, fees and events, and public support from the City. As our new Executive Director and staff come on board, additional funding mechanisms will begin to replace those supplied by the City in the first year. Within a three- year time span, FDP intends to be 'self-sufficient with alternative funding mechanism listed below. 1 111 11 . yir C j"�Tp "f2 l� i•�ivYi2 Y J'V� •• 1 1 1 1 1 1 1 , r �'`�`�. •, 1 111 11 111 11 11 BID Projects & Capital f! , L.�iPT, riM iFrtrtl� 't. ' S 1' Ti', y uk ll\L Y ! Jf( 1�ra »E_`S° 1. 11 111 11 z� Fees & X 1 111 11 —'— Donations u • e ' ■ it .• • - ',1 11 ',.1 111 I1 111 11 CI. ■ ', 1 1 1 •, 1 1 1 1 1 ', 1 1 1 1 1 ■ ', •i 111 11 ','1 111 I$ C1 11 cfl,n.s I II II FAYETTEVILLE DOWNTOWN PARTNERS 11 OCTOBER 12, 2004 0 Interim Business Plan Short Term Funding Three Year Proposal Section Two — Expenses and Funding Initial funding is provided through memberships and events, fund raising, and private donations. In the first year, funding is subsidized by the City of Fayetteville. MEMBERSHIP FEES & DONATIONS FDP is a membership organization, with a Board that is not only responsible to the City but is also specifically accountable to its membership. Membership fees are structured into two primary types, business and individual, with the two categories further delineated so that all businesses and individuals can be included as members. As a 501-C-3 organization, contributions to Fayetteville Downtown Partners are tax deductible. FDP may receive donations of assets such as property, or other capital, for partnering in Public/Private/Non-profit endeavors. The "partnering" aspect of the organization allows for Fayetteville Downtown Partners to be the conduit through which substantial gifts may enrich the vitality of the downtown community. FDP is currently campaigning businesses, individuals, investors, banking institutions, and 'developers that have benefited from the improved quality of life in downtown Fayetteville over the years. We see the positive impact the previous downtown enhancement project has had on the growth of the community and, to ensure this positive momentum is not lost, we are soliciting donations from private individuals to support our ongoing participation in this growth and improvement. EVENTS & PROGRAMS Events and Fundraisers such as the sponsorship of banners and other downtown amenities, the Designer House, the Fayetteville Fine Arts Festival, and other fairs and events are a minor but important component of the financial scheme. Through these activities the community as a whole is included in financing the downtown environment vhich is enjoyed by citizens and visitors alike. CITY OF FAYETTEVILLE To maintain the momentum to implement the Downtown Master Plan and to bridge the gap from now until long-term funding sources are in place, Fayetteville Downtown Partners will require transitional funding. The bulk of this transitional funding is projected to be needed through fiscal year 2005, until such time that the Executive Director and Board implement our long-term funding strategies. The City has a history of funding DDEP's operational expenses during the implementation of the Downtown/Dickson plans; however the City has not provided any funding to the organization in 2004. Long•Term Funding Within three years, FDP's dependence on public funds will be greatly reduced by alternate sources of income. These include state and federal grants and other funding mechanisms. FAYETTEVILLE DOWNTOWN PARTNERS 12 OCTOBER 12, 2004 Interim Business Plan F 1T Three Year Proposal Section Two — Expenses and Funding GRANTS It is expected that grants will be a fourth component in the funding puzzle, providing revenue for specific projects as designated by the funding agent. Federal grants will provide part of the funding for improvements on College Avenue and Block Avenue in the near future, and similar funding may be available for other place -specific projects. Attainable housing monies are available from Home Funds through ADFA ,CDBG Funds from the City of Fayetteville, low income Housing Tax Credits from the Arkansas Development Finance Authority, and the Federal Home Loan Bank. Our non-profit attainable housing consultant ( Paul Esterer) and our grant writer will partner with other agencies and organizations to find revenues for projects within the area, whether those projects are public, private, non- profit, or a partnership among sectors. FDP has contacted grant writer Mark Gieringer of Stone Ridge Publishing to work on a consulting basis at a rate of $45 per hour. Suggested entities to initially investigate monies are: the Winthrop Rockefeller Foundation, The Reynolds Foundation, Swepco, and federal programs. BUSINESS IMPROVEMENT DSTRICT ("BID")AND CAPITAL PROJECTS FDP will research the viability of a Business Improvement District for the downtown area. The funds from a yet -to -be -approved BID may be a primary piece of the revenue needed to fund the administrative costs of implementing Fayetteville's Downtown Master Plan. BIDS are consistently one of the primary revenue sources for other organizations on which Fayetteville Downtown Partners is modeling its financial structure. Business Improvement Districts draw revenue from within the boundaries of the district and provide a consistent source of revenue from which bonds could be issued for short-term financing of initial projects. BID's can serve as a funding source for enhanced improvements, services, and activities such as security, cleaning and landscape maintenance in addition to those provided by local government. Our investigations have shown that most groups in Arkansas and around the country with our same goals have created BID's for permanent funding. Steve Gibson of Urban Place Consulting (www.urbanplaceconsulting.com) has been contacted to work with the board and key property owners regarding the feasibility of a comprehensive improvement district. We are currently contracting with him to provide preliminary services. FAVETTEVILLE DOWNTOWN PARTNERS 13 OCTOBER 12, 2004 r • Interim Business Plan RAFT Three Year Proposal SECTION THREE - FOUNDATIONS OF THE ORGANIZATION By utilizing the existing by-laws, organizational structure, and 501(C)3 status of DDEP, FDP is able to seamlessly transition into the new organization. The existing structure includes a fifteen - member board overseeing a design committee, a marketing committee, various ad hoc event planning committees, and a newly forming merchants' association. The new FDP is ideally suited to usher in the recommendations of the Master Plan and promote the interest of the merchants and community of downtown Fayetteville. BOARD OF DIRECTORS While several board members from DDEP are continuing their involvement in the new organization, the majority of board members currently serving have joined Fayetteville Downtown Partners since 2003. The direction of FDP is guided by this diverse group of community representatives able to understand and articulate the needs of the downtown Fayetteville population. The key to the effectiveness of the board are its members, which include two City aldermen, the VP of communications at the Walton Arts Center, and various business leaders and real estate developers with a history of success within the community. All of the board members live in Fayetteville and several live within the downtown Fayetteville district. FDP intends to utilize the current members of this board to smooth the transition to a full-time staff. However, with the appointment of a permanent Executive Director, and the evolution of the organization the City Council might be required to appoint board members to ensure that fair representation is met. Executive Committee • President: Sharon Hoover — Former Planning Commissioner; Architect, Allison Architects Inc. - shoover@allarch.com • Vice President: Reverend Dr. Leslie Belden — Resident; Preservationist — lesliebeld@aol.com • Secretary: Terri Trotter' - Vice President of Communications, Walton Arts Center - ttrotter@waltonartscenter.org • Treasurer: Steve Davis — Property Owner, Business Owner, Smoothie King — davishealth@aol.com Board Members • Cathy Foraker— Director of External Affairs, SBC — cf9399@sbc.com • Stephanie Parsons — Vice President, Signature Bank — sjparsons@cox-intemet.com • John Nock — Investment Banker, American Municipal Securities — nock@amuni.com FAYETTEVILLE DOWNTOWN PARTNERS 14 OCTOBER 12, 2004 I • Interim Business Plan DRAFT • Three Year Proposal Section Three — Foundations of the Organization • Robert Rhoads* — Ward 3 Alderman — rrhoads@hallestill.com • Don Marr* — Ward 2 Alderman — donmarr@swbell.net • Jill Anthes* — UA Campus Planner—ji11222@verizon.net • Bob Kohler* — Architect; Owner's Representative, Fayetteville Public Library — rck3@aol.com • Cindy Kalke* — Corporate Project Manager; Resident — ckalke@fayetteville.com • Amy White -Beard* — Business Owner, Something Urban; Attorney — moreismore84@hotmail.com • Aaron Bleidt* - Former Quorum Court Judge; Business Owner, Citiscapes Metro Monthly — cedge@ipa.net Ex -officio Members Dan Coody — Mayor, City of Fayetteville — dcoody@ci.fayetteville.ar.us • Tim Conklin — Director of Planning & Engineering, City of Fayetteville — tconklin@ci.fayetteville.ar.us • Hugh Earnest — CAO, City of Fayetteville — hearnest@ci.fayetteville.ar.us • Kyle Cook — Alderman Ward 2—jdseed@swbell.net DESIGN COMMITTEE The Design Committee consists of local design professionals with expertise in urban design and an understanding of the Fayetteville environment. This talented group of individuals has assisted in fostering the level of design now seen across the Downtown/Dickson Street district. This committee has taken on various roles including the advisor post for redesigning intersections and pedestrian networks. Most recently, the design committee assisted the City in the selection and placement of benches and waste -baskets in the Dickson Street Improvement District. The current direction of the Design Committee involves proactive review of the new Downtown Master Plan, zoning, and architectural regulations. The 2005 initiative for the committee is to offer pro bono design assistance to small business owners. • Chair: Jill Anthes — UA Campus Planning • Katie Breshears — Intern Architect, Polk Stanley • Sharon Hoover —Architect, Allison Architects Inc. • Bob Kohler* — Architect; Owner's Representative, Fayetteville Public Library New board member since 2003 FAYETTEVILLE DOWNTOWN PARTNERS 15 OCTOBER 12, 2004 Interim Business Plan DRAFT Three Year Proposal Section Three — Foundations of the Organization Alan Ostner — Chairman, Fayetteville Planning Commission; Landscape Architect Rob Sharp — Architect, Robert Sharp Architects MARKETING COMMITTEE Terri Trotter, Vice President of Communications at Walton Arts Center leads the Marketing Committee. The focus of the Marketing Committee within the new FDP structure is to promote and raise awareness of the downtown district, establishing the district as the cultural and entertainment center of Northwest Arkansas. The committee will focus on broad marketing issues including assessing and refining the brand for downtown Fayetteville. Solid brand marketing strategy will be employed to ensure consistency of message to engender top -of -mind awareness of the district as a major destination for cultural and entertainment activities. Members of the committee include marketing and advertising professionals, business owners, and representatives of major cultural and entertainment entities within the district. The committee may also seek the services of a communications professional who specializes in research and brand marketing to assist with the strategy development. The Marketing Committee will also oversee the promotion and/or implementation of appropriate festivals to further raise awareness of the district and its unique character. Festivals endorsed by the FDP will be carefully scrutinized to ensure that they serve as a valuable marketing tool for the district. FDP will also liaison with other organizations within the FDP boundaries (such as the Historic Commission or neighborhood associations) to encourage and support festivals, events or activities that benefit the district. (Note: In 2002 the Walton Arts Center began a long-term strategic plan to access and strengthen the cultural needs in Northwest Arkansas. The outcome was a Cultural Development Action Plan in which the primary recommendation was the creation of a cultural district in downtown Fayetteville. The 2003 Downtown Master Plan also calls for the establishment of such a district. FDP would like to champion this cause and make the cultural district a reality. ) FESTIVALS FDP will serve as the district's coordinator for all festivals and events. Assistance to events not produced by FDP will include: non-profit status for financing, inventory of sponsorships and volunteers, assistance with street closure planning, notification of police, communications with businesses and residents in the area, list of infrastructure necessities for the events with contact information, vendor lists, and other planning. Events produced by FDP currently include the Fayetteville Fine Arts Festival and the Northwest Arkansas Designer House. Future events for FDP to consider for production are: First Night, Mardi -Gras, Springfest, Autumnfest. New events consistent with the FDP mission and goals will also be considered. PROMOTIONS COMMITTEE The Promotions Committee, led by Amy White -Beard, owner of Something Urban, meets to discuss and implement promotional ideas for new and existing downtown businesses. These activities may include seasonal or other time -specific promotions as well as business -specific activities. This committee also determines ways to cross -promote with other events and FAYETTEVILLE DOWNTOWN PARTNERS 16 OCTOBER 12, 2004 I Interim Business Plan Three Year Proposal Section Three — Foundations of the Organization organizations, most notably, with the Walton Arts Center, the University, and festivals. As a result of the positive impact of this committee's efforts, the merchants have formed a grass- roots merchants' association. MERCHANTS'ASSOCIATION The Merchants' Association includes retail, restaurants, and bars in the district. Currently forming a board, mission statement, and financial structure, its primary purpose is to provide networking and support among business owners. FDP is encouraging this nascent group both through administrative and financial support. Two of the three organizers of the merchants' association serve on the FDP Board of Directors. UNIVERSITY RESOURCES FDP is currently working with the University of Arkansas on several levels, including involvement with the Master of Business Administration Program, the Center for Business and Economic Research, the UA Physical Plant, and the UA Community Design Center. MBA Partnering Project FDP is coordinating with the Sam M. Walton College of Business MBA program to host a partnering project in the spring of 2005. The program provides four to six MBA candidates in their final semester of study to work on a consulting project as outlined by the host organization. FDP has identified several potential projects for the MBA team of which one will be selected for their 10 -week project: • Feasibility and Structure of a Business Improvement District • District Branding Campaign Strategy • Detailed Business Plan • Organizational Work Plan • Attainable Housing Funding Research and Strategy Center for Business and Economic Research FPD is working with the executive director of the Center for Business and Economic Research, Jeff Collins, to research and document the economic and financial impact of the proposed Tax Increment Financing district. Jeffs team is bveraging their extensive collection of economic data on Arkansas and the surrounding region to formulate the future impacts of incremental property tax increases projected into the future. Jeffs team may also be utilized to investigate the financial impact of a Business Improvement District. FAYETTEVILLE DOWNTOWN PARTNERS 17 OCTOBER 12, 2004 r� u Interim Business Plan DRAFT Three Year Proposal Section Three — Foundations of the Organization UA Facilities Management Because of the proximity of downtown Fayetteville to the campus of the University of Arkansas, FDP maintains a close relationship with the Physical Plant. Currently, Mike Johnson, the Associate Vice Chancellor — Facilities, is participating on the Executive Director Search committee. UA Community Design Center The UA Community Design Center ("UA CDC") is an outreach center of the School of Architecture with the mission of advancing creative development in Arkansas and its communities. FDP maintains a close relationship with UA CDC in order to leverage the expertise of their designers and urban planners. The Community Design Center created the concept plan for the improvements that we now enjoy on Dickson Street. FAYETTEVILLE DOWNTOWN PARTNERS 18 OCTOBER 12, 2004 • S. Interim Business Plan SECTION FOUR - OUR PLAN FOR THE FUTURE DRAFT Three Year Proposal Fayetteville Downtown Partners, working with Brent Robinson, a Business Designer from Blue Frog Group, LLC, has created the following plan to transition FDP to the permanent organizational structure necessary to implement our goals and those stated in the Downtown Master Plan. The startup phase of this plan involves hiring a Interim Director to carry on the existing commitments of the organization and to facilitate the search for the Executive Director. In the second phase, the organization conducts a national search for a permanent Executive Director. In the third phase, the Executive Director details the business plan and hires the staff necessary to achieve the vision of FDP. PHASE ONE— STARTUP FDP is currently a volunteer organization with one Interim Administrator, Eileen Roufa, with a contract through December 2004. To achieve the organization's goals, a full-time staff is required beyond this date. The first step toward a permanent, full-time staff is contracting a Interim Director to implement the directives of the Board, build the foundations necessary for the permanent staff, and facilitate the search for a permanent Executive Director. Interim Director The purpose of the Interim Director b to have a person devoted full-time to managing the startup processes for the new organization. The Interim Director will focus on three primary areas: 1) Maintaining internal operations and 2) Facilitating the Executive Director search, and 3) Coordinating the grant research effort. The Interim Director will assume the day-to-day operating responsibilities from the Interim Administrator. This will include managing accounts and budgets, creating newsletters and organizational communications, and administering the FDP website. The Interim Director will also assist with the formation of the new Merchant's Associations. The Interim Director will work with the Executive Director Search Committee to facilitate their efforts. Tasks will include advertising the tosition and coordinating the search. The Interim Director will also manage incoming candidate information, validate resumes and references, conduct initial phone screening interviews, send regret correspondence, and develop a short-list of candidates. In addition, the Interim Director will coordinate travel accommodations for the short-list candidates and interview schedules with the Search Committee members. The Interim Director will posses the following skills and characteristics: • High level of organization and project management skills • Familiarity with business startup and non-profit organizations • Experience conducting candidate searches and interviews • Strong verbal and written communication skills The term of the Interim Director will be limited to the time required to begin the startup processes, to conduct the Executive Director search (the search is likely to take from three to FAYETTEVILLE DOWNTOWN PARTNERS 19 OCTOBER 12, 2004 Interim Business Plan DRAFT Three Year Proposal Section Four— Our Plan forthe Future six months), and to transition operations over to the new Executive Director. The minimum engagement for this position is three months with a possible extension of up to six months. We will contract this position to an outside consultant to avoid the administrative overhead of benefits and to accommodate the transitive nature of the position. The Interim Director will utilize the existing space. The compensation for the Interim Director position will be $5,000 per month. Initiate Grant Research FDP has identified possible grant opportunities to provide for some of the organization's funding and to fund new capital projects in the district. However, the grant process, beginning with research through preparation and submittal to the actual award is lengthy. This process needs to begin well before a full-time grant writer is onboard. To accomplish this, FDP will outsource initial grant research and preparation to a local grant -writing consultant. Grant writers typically charge $45/hour with a single project taking between 40 and 80 hours. PHASE Two- EXECUTIVE DIRECTOR SEARCH Conducting a search for a full time Executive Director of the caliber necessary to implement the goals of FDP will require a national search effort, a committee of individuals to evaluate candidates, and travel expenses for short-listed candidates. The position requires an individual with the following characteristics and skills: • Knowledge of grants, legalities, and realities of development/cultural districts • Solid business background with an understanding of real estate • Coalition building skills • Energy to motivate business leaders • Organizational skills to run a staff and board • Political skills for working with City and government agencies Because of this unique skill set, the compensation for this position should begin around $75k plus 25% benefits and should not exceed $100k plus 25% benefits. Finding a suitable candidate for the full time Executive Directorship will require resources to conduct a national search. In addition to the salary requirements, the Executive Director search will require funds to advertise the position at the national level, travel expenses to bring short-list candidates to Fayetteville, and fees for executive employment search firms utilized in the narrowing of possible candidates. Executive Director Search Committee An Executive Director Search Committee, chaired by FDP Vice -President Leslie Belden, has been formed to determine the necessary skills for the position and to evaluate candidates. The FAYETTEVILLE DOWNTOWN PARTNERS 20 OCTOBER 12, 2004 Interim Business Plan DRAFT Three Year Proposal Section Four —Our Plan forthe Future volunteers were selected for their areas of expertise within the community and their willingness to give their time. For this reason, it is important to organize the search effort to effectively utilize the volunteers' time. The Search Committee has already met and is establishing candidate criteria and project milestones for the search. The volunteers working with Leslie include: • Mike Johnson, Associate Vice Chancellor — Facilities Management, University of Arkansas • Don Marr, Ward 2 Alderman • Rob Merry -Ship, North College Development • Terri Trotter, Vice President -Communications, Walton Arts Center • Craig Underwood, Underwood Jewelers • Cathy Bass, Dickson Street Neighborhood Association • Dan Coody, Mayor of Fayetteville • Representative of FEDC, A&P Committee, Fayetteville Chamber of Commerce PHASE THREE-FDPASAN ONGOING CONCERN The new Executive Director will need to accomplish several organizational goals. The first objective of the new Executive Director will be to translate the goals of the organization into an actionable business plan. Second, s/he will need to build the staff necessary to effectively implement that plan. The staff requirements will actually be determined by the new Executive Director, however the Board of Directors is researching similar downtown development organizations and believes the staff will likely include the following positions: Grant Writer On -staff Grant Writer (annual base salary $45k plus 25% benefits) — Grant research and writing to seek out funds for non-profit, public/private, and government projects and partnerships. • Excellent writing skills • Proficiency with non-profit budgeting • Proficiency in using PC computers and software including Windows, Microsoft Excel and Microsoft Word • Organized, friendly and professional Marketing Coordinator Marketing Coordinator (annual base salary $45k plus 25% benefits) — Coordinate marketing efforts and organize events for the district, including district events, the merchants' association, and regional branding efforts. FAYETTEVILLE DOWNTOWN PARTNERS 21 OCTOBER 12, 2004 Interim Business Plan DRAFT Three Year Proposal Section Four— Our Plan for the Future • Excellent marketing, communication and writing skills • Project management and multi -tasking ability • Proficiency in using PC computers and software including Windows, Microsoft Excel and Microsoft Word • Organized, friendly and professional Administrative Assistant Administrative Assistant (annual base salary $35k plus 25% benefits)'— Provide direct support to the Executive Director and supplemental support to the remaining staff, including document preparation and contact management. • Excellent writing skills • Proficiency in using PC computers and software including Windows, Microsoft Excel and Microsoft Word Professional and outgoing FAYETTEVILLE DOWNTOWN PARTNERS 22 OCTOBER 12, 2004 • • • Interim Business Plan COSTS AND FEES ESTIMATE DRAFT Three Year Proposal Section Four- Our Plan for the Future Based on the hterim business plan phases outline above, the costs for implementing the plan are estimated in the table below: ITEM -, -.?;; a_x;,;�, ,COST ESTIMATES. : .. , u:�L.ow: Hlc�tt Phase One - Startup Hire Interim Director (3 to 6 months) $15,000.00 $30,000.00 Outsource Grant Research (40 to 80 hours) $2,800.00 $5,600.00 Phase One Subtotal $17,800.00 $35,600.00 Phase Two - Executive Director Search Advertising and Search (national) $15,000.00 $20,000.00 Travel & Expenses (3 candidates) $3,000.00 $5,000.00 Hire new Executive Director $93,750.00 $125,000.00 Phase Two Subtotal $111,750.00 $150,000.00 Phase Three - Ongoing Concern Advertising (regional) $1,000.00 $1,500.00 Hire Staff (3 positions) $156,250.00 $156,250.00 Phase Three Subtotal $157,250.00 $157, 750.00 Year 1 Total $286,800.00 J $343,350.00 FAYETTEVILLE DOWNTOWN PARTNERS 23 OCTOBER 12, 2004 0 • Interim Business Plan DRAFT Three Year Proposal APPENDIX A- DOWNTOWN DEVELOPMENT ORGANIZATIONS The Board has researched a number of organizations with similar focus to the FDP and designated several as exceptional examples of urban development stewardship. INTERNATIONAL DowNTOWNASSoclATiON The International Downtown Association is a world leader and champion for vital and livable urban centers. Through its network of committed individuals, its rich body of knowledge, and its unique capacity to nurture community -building partnerships, IDA is a guiding force in creating healthy and dynamic centers that anchor the well-being of towns, cities and regions throughout the world. http:/lwww.ida-downtown.org/krniDesktopflefault.aspx EXAMPLE ONE— CENTER CITY COMMISSION- MEMPHIS, TENNESSEE One organization of note is the Center City Commission in Memphis. Center City Commission is the BID manager for the downtown of Memphis as defined by the Memphis Business Improvement District. Its mission is simply: To improve the economy of Memphis and Shelby County by coordinating an aggressive public/private partnership to promote the redevelopment and economic growth of the central business district. Website: http:/Amww.downtownmemphis.com/ The structure of the Center City Commission is: • Center City Commission — governmentally created organization with a volunteer board of 20- employs the CCC's president, approves the operating budget, acts as a general policy forum for downtown issues • Center City Development Corporation — 501-c-3 with 9 board members--- buys and sells property for development purposes and administers a low interest loan program • Center City Revenue Finance Corporation- state chartered industrial development board with the power to grant city and county tax freezes in the downtown area without legislative oversight and issues tax exempt and taxable bonds for downtown projects • Downtown Parking Authority —builds and manages the public garages • Design Review Board — 7 member board — design professionals who administer the City's special downtown sign ordinance, reviews exterior design of all public and private development projects receiving incentives from any CCC entities FAVETTEVILLE DOWNTOWN PARTNERS 24 OCTOBER 12, 2004 Interim Business Plan Three Year Proposal Appendix A — Downtown Development Organizations EXAMPLE Two - DOWNTOWN LINCOLNASSOCIATION- LINCOLN, NEBRASKA The FOP sees the Downtown Lincoln Association as a model downtown development organization for its innovative use of various sub -organizational types to facilitate development. The DLA mission is: The Downtown Lincoln Association serves its downtown constituents and the Lincoln community by providing leadership, marketing, management, economic development services and events to ensure a vibrant, inviting downtown. Website: http:/twww.downtownlincoln.orp/ The structure is described below and different sub -organizations have different IRS designations to ensure the correct level of transparency is maintained. publivpriWIto development FAVETTEVILLE DOWNTOWN PARTNERS 25 OCTOBER 12, 2004 I Interim Business Plan DRAFT Three Year Proposal Appendix A— Downtown Development Organizations EXAMPLE THREE— CAPITAL CITY DEVELOPMENT CORPORATION— BOISE, IDAHO In our research, we contacted the Capital City Development Corporation and received excellent feedback on their internal staff searches. Their organization is of similar size and scope to the FDP. The CCDC describes itself as: The Capital City Development Corporation is a public agency that administers urban redevelopment projects for the City of Boise, Idaho. Urban redevelopment projects can include planning and facilitating the development of retail, residential, office, hotel, cultural and educational projects and public improvement projects under the guidance of adopted urban renewal plans. CCDC is legally and financially separate from the City of Boise. CCDC has an eight -member Board of Commissioners appointed and confirmed by the Mayor of Boise and the Boise City Council. Website: http://www.ccdcboise.comfindex.htm The structure of the CCDC structure is governed by an eight -member Board of Commissioners. Commissioners are selected by the Mayor and confirmed by the City Council for five-year terms. EXAMPLE FOUR - DOWNTOWN PARTNERSHIP - LITTLE ROCK, ARKANSAS DP is a non-profit, membership -based organization led by a 40 member board. They manage a 47 block Metrocenter Improvement District that provides a clean and safe program for the business core. Website: http:/twww.downtownlr.com FAYETTEVILLE DOWNTOWN PARTNERS 26 OCTOBER 12, 2004 0 Interim Business Plan APPENDIX B — POSSIBLE PROJECTS - ATTAINABLE HOUSING DRAFT Three Year Proposal The following is an outline prepared by Paul Esterer of First Security Vanadis highlighting the steps a non-profit organization must consider for attainable housing projects. FUNDING SOURCES • Low Income Housing Tax Credits— Arkansas Development Finance Authority • HOME Funds — ADFA • CDBG Funds — City of Fayetteville • Federal Home Loan Bank GENERAL SCHEDULE • Meet with owner and prepare preliminary project structure - Sponsor - Number of Units; type of units General feasibility of project • Obtain market study and other predevelopment documentation • Assemble documentation for ADFA application and submit • If approved, close before year end ADFA SCHEDULE • February 11, 2005 — application deadline • April 22, 2005 — deficiencies and scoring notification • April 29, 2005 — cure period • May 2, 2005 — final scoring notification • May 19, 2005 — successful applicants notification • May 26, 2005 — reservation letters mailed THINGS TO CONSIDER • Site for Project Cost Zoning FAYETTEVILLE DOWNTOWN PARTNERS 27 OCTOBER 12, 2004 r • • :flkilliilllNlal4*IJFli,4 a Three Year Proposal Appendix B — Possible Projects — Attainable Housing Environmental • Predevelopment funds/financing • Support from Community — Highest elected official — Legislators • Consultant • Architect/Engineer • Contractor PRE -DEVELOPMENT EXPENSES • Post-ADFA Application • Environmental • Survey • Legal Services • Loan Fees • Architect's Fees • Market Study • Appraisal • Tract Search • ADFA Fees • Miscellaneous �.4 , $5,000 approx. $4,000 approx. $5,000 approx. $5,000 approx. $30,000 approx. $5,000 approx. $4,000 approx. $ 250 approx. $ 300 approx. $5,000 approx. FAYETTEVILLE DOWNTOWN PARTNERS 28 OCTOBER 12, 2004 From: Clarice Pearman To: Conklin, Tim Subject: Fayetteville Downtown Partners Tim, The Council passed a bid waiving ordinance for this contract at the Mar. 1, 2005 meeting. However the contract for services does not have a signature page. Please get the signature page for this contract with the signature of the other party to me to continue the processing of the ordinance. The mayor will be out until March 14th. He'll be in later this afternoon to sign last resolutions and ordinances. Just an heads up in case you need this soon. Thanks. Clarice From: Clarice Pearman To: Conklin, Tim Subject: Re: Fayetteville Downtown Partners The mayor has already been here to sign resolution and ordinances. I was told that he would be by Friday morning to sign before he leaves town. If you can get the signature page to me by Thursday close and get his signature. IIitiiib? >>> Tim Conklin 03/02/05 11:41AM >>> Thanks for the heads up. I notice that last night after our discussion on the Thomas contract Tim Conklin, AICP Director of Community Planning & Engineering Services City of Fayetteville 113 West Mountain Street Fayetteville, AR 72701 Phone: 479-575-8267 Fax: 479-575-8202 lanninal(Dci.favetteville.ar. us >>> Clarice Pearman 03/02/05 10:25AM >>> Tim, The Council passed a bid waiving ordinance for this contract at the Mar. 1, 2005 meeting. However the contract for services does not have a signature page. Please get the signature page for this contract with the signature of the other party to me to continue the processing of the ordinance. The mayor will be out until March 14th. He'll be in later this afternoon to sign last resolutions and ordinances. Just an heads up in case you need this soon. Thanks. Clarice From: Tim Conklin To: Pearman, Clarice Date: 3/2/05 11:41 AM Subject: Re: Fayetteville Downtown Partners Thanks for the heads up. I notice that last night after our discussion on the Thomas contract. Tim Conklin, AICP Director of Community Planning & Engineering Services City of Fayetteville 113 West Mountain Street Fayetteville, AR 72701 Phone: 479-575-8267 Fax: 479-575-8202 planning@ci.fayetteville.ar.us >>> Clarice Pearman 03/02/05 10:25AM >>> Tim, The Council passed a bid waiving ordinance for this contract at the Mar. 1, 2005 meeting. However the contract for services does not have a signature page. Please get the signature page for this contract with the signature of the other party to me to continue the processing of the ordinance. The mayor will be out until March 14th. He'll be in later this afternoon to sign last resolutions and ordinances. Just an heads up in case you need this soon. Thanks. Clarice • City of Fayetteville • Staff Review Form City Council Agenda Items Contracts 1 -Mar -05 City Council Meeting Date Tim Conklin Planning & Development Mgmt. Operations Submitted By Division Department Action Required: Approval of a contract and bid waiver for Fayetteville Downtown Partners in the amount of $150,000 to provide services to the City of Fayetteville with regard to implementing the Downtown Master Plan. $0.00 Cost of this request n/a Account Number n/a Project Number Budgeted Item EJ n/a Category/Project Budget n/a Funds Used to Date n/a f Remaining Balance Budget Adjustment Attached n/a Program Category / Project Name n/a Program / Project Category Name n/a Fund Name Previous Ordinance or Resolution # n/a / / -off Original Contract Date: n/a Department Director Date City Attorney Mayor Original Contract Number: n/a 2- 16 -or . Received in City Clerk's Office Date Received in Mayor's Office ( eZ'r?j Clarice Pearman Fvy Downtown Partners ` �^ Page 1 From: Clarice Pearman To: Conklin, Tim Date: 3/17/05 11:40AM Subject: Fvy Downtown Partners Tim, Just a confirm that we talked yesterday regarding the agreement with Fayetteville Downtown Partners to attached to the resolution passed on March 1, 2005. Thanks. Clarice Clarice Pearman -Ord. 4682 _ Page 1 From: Clarice Pearman To: Conklin, Tim Date: 3/21/05 10:10AM Subject: Ord. 4682 Attached is a copy of the ordinance passed by City Council, March 1, 2005 regarding a bid waiver for Fayetteville Downtown Partners. Thanks. Clarice