Business Retention and Development Committee Agenda and Packet 2013 02 04

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Business Retention & Development Committee Meeting Minutes December 3, 2012 Page 2 of 3 rd Austin Fairbourn with CBRE presented the highlights of the 3Quarter Northwest Area Commercial Real Estate Report. As a history, the majority of commercial product in the area was built between 1991-2001. It peaked in 2001 and quickly fell off after the ‘dot com’ bust in 2001. The market regained until 2007. The recession of 2008-2009 impacted the market greatly. Very little new product has entered the market since 2006, but two new projects, EOS and 385 Interlocken have been added recently. Total square footage for the area is 7.7 million square feet. Louisville represents 16.7% of the total. These statistics exclude owner-occupied space, which Louisville has more than most (particularly in CTC). Direct vacancy for the sub-market is 19.2% and Available vacancy is 28%. Denver’s percentages are 15% and20% respectively. CBRE expects these rates to decrease to 13% and 14% respectively. Reasons for this expectation are; More smaller tenants are entering the area, providing more stability Louisville is a logical first stop for companies looking outside of Boulder Asking rates in the area are a little higher than the metro area average. Louisville is more competitive as tax rates and operational expenses are significantly lower than competing products. Some threats were mentioned that may affect the commercial real estate market. Vestas has continued to reduce employment and is having an effect. Phillips 66 property is a big unknown and is a factor in other property decisions. Louisville is mainly a Class B product and therefore doesn’t get looked at by bigger companies. Getting Class A space in Louisville may require raising height restrictions on new development. Approval of Posting Locations The 2013 posting locations were approved unanimously.The 2013 Open government packet was also distributed. BRaD Business Portfolio Spreadsheet It was suggested that Aaron DeJongupdate the report on a 6 month basis. RETENTION MEETINGS Hi-Tech Appliance – Aaron met with Randy Orth. He would like to see more events occur in the Centennial Valley area to promote businesses. Overall happy to be in the City. Inovonics- Aaron met with Mark Jarman.Overall, he is happy doing business in Louisville. The lack of lunch time food options is a limiting factor. Employees are happy with the location. Eldorado Springs – Aaron met with Doug Larson. The company has a case in Water Court surrounding wateruse at the Springs. This case affects the City’s water rights so it is a plaintiff in the case. Doug missed out on bidding for large purified water contracts because it does not have a long term water contract with the City. He didn’t request a new agreement with the City.