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City Council <br />Meeting Minutes <br />February 5, 2019 <br />Page 4 of 21 <br />• Identify and evaluate development restrictions and regulatory and policy barriers to <br />redevelopment and investment in the corridor <br />• Ensure sustainable long-term fiscal health of the City and economic development <br />of the McCaslin corridor by ensuring new development has an exceptional fiscal <br />benefit to the City <br />• Reflect residents' desired community character for the corridor in evaluation of <br />development scenarios and study recommendations. <br />Dan Guimond, City consultant from EPS, stated the summary of the market analysis <br />shows market conditions of sales tax trends increasing, higher than when Sam's closed in <br />2010 Accounting for inflation, sales tax generation is about $150,000 above 2009 2013 <br />— 2017 show nearly 6 % annual growth, building materials and eating/drinking account for <br />the majority of sales tax revenues. The six hotels in the subarea provide nearly 15 <br />percent of sales tax generated Convenience and shopper's goods sales are driven by the <br />major stores such as Kohl's and Safeway <br />Retail findings. <br />• Demand for retail from new growth over the next 10 years is 150,000 square feet <br />- McCaslin Subarea has historically captured 20% of new growth <br />- Estimated demand is 30,000 square feet <br />• Role as regional destination is diminishing <br />- Limited inflow of sales other than to a few big boxes <br />- New stores to the north and east are shrinking trade area <br />• Opportunity to attract more neighborhood/community retail stores <br />- The subarea captures a relatively small amount of sales for everyday <br />retail goods <br />- Examples include additional grocery, specialty foods, beer/wine stores <br />• Opportunity for uses that attract more visitors to drive demand <br />- Entertainment and hospitality uses will attract most visitors <br />- Place -making is an essential element for attracting visitors <br />- Multifamily and office uses will generate demand but to a lesser degree <br />Non retail findings <br />• Residential <br />Strong demand continues as employment growth outpaces housing <br />growth <br />Product type and density are related to supportable rents/prices <br />• Office <br />• Hotel <br />Rental rates in the subarea and larger trade area have been growing <br />steadily since 2010 <br />Average rental rates in the subarea are reaching point where new <br />development is supportable <br />Parcel 0 office demand likely limited to medical and community services <br />- Limited hotel construction in past decade in the trade area <br />