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092297 EDA Official File Copy CITY OF NEW HOPE L:DA AGENDA EDA Regular Meeting #9 September 22, 1997 Agenda #9 President W. Peter Enck Commissioner Sharon Cassen Commissioner Don Collier Commissioner Pat La Vine Norby Commissioner Gerald Otten 1. Call to Order 2. Roll Call 3. Approval of Minutes of September 8, 1997 4. Discussion Regarding Resident Guide and Business Directory Promotion (Improvement Project No. 609) 5. Adjournment CITY OF NEW HOPE 4401 XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 Approved EDA Minutes September 8, 1997 Meeting //8 CALL TO ORDER President Enck called the meeting of the Economic Development Authority to order at 8:33 p.m. ROLL CALL Present: Enck, Cassen, Collier, Norby, Otten staff Present: Sondrall, Hanson, Donahue, Leone, McDonald, Olson APPROVE MINUTES Motion was made by Commissioner Otten, seconded by Commissioner Collier, to approve the EDA minutes of August 25, 1997. Voting in favor: All. Motion carried. LOAN REQUEST President Enck introduced for discussion Item 4, Discussion Regarding Item 4 Low Interest Loan Request by Jay Showalter for Winnetka and 42nd 76 Station, 4200 Winnetka Avenue North. Mr. Jay Showalter, owner of 76 Station at 4200 Winnetka Avenue North, was recognized. He inquired of financial assistance which may be available through the City. He shared his plans to modify the facility to meet Citgo requirements. The EDA explained its limitations for financial assistance and that one requirement of the City's policy for granting Iow interest loans is that there must be substantial upgrades and an increase in market value. Discussion took place regarding the vacant site north of Mr. Showalter's property and whether Mr. Showalter had any interest in acquiring the property for expansion purposes. Mr. Showalter stated the purchase price is significant and at this time he is not pursuing acquiring additional land. The EDA denied the loan request as it did not meet the City's financial assistance policy. ADJOURNMENT Motion was made by Commissioner Norby, seconded by Commissioner Cassen, to adjourn the meeting. All present voted in favor. ,The New Hope EDA adjourned at 8:55 p.m. Respectfully submitted, Valerie Leone City Clerk New Hope EDA September 8, 1997 Page 1 I-L)A  REQUEST FOR ACTION Originating Department Approved for Agenda ED/~genda Section City Manager  9-22-97 EDA Kirk McDonald j Item No. By: Management Assistant By:j 4 DISCUSSION REGARDING RESIDENT//~UIDE AND BUSINESS DIRECTORY PROMOTION (IMPROVEMENT PROJECT NO. 609) / Staff request to discuss with the EDA a concept idea regarding the development of a New Hope Resident Guide and Business Directory promotion. As you are aware, in 1995 and 1996 the City and retail business community cooperated with each other to fund and conduct the "Shop Neighborly New Hope" campaign. The purpose of these promotions was to publicize and educate residents about the goods and services available in New Hope and to encourage support for local businesses. The promotions also allowed the City to establish a good working relationship with local retailers. While the promotions were successful in terms of generating excitement, they did not satisfy the goal of increased business activity once the promotional events ended. Earlier this year representatives from the City met with business owners and indicated that the City wanted to continue the cooperative partnership with the local businesses, but everyone agreed that it would be beneficial to re-focus efforts on a new program or strategy that would have the potential of greater benefit to both the business community and City. The City held several brainstorming meetings in March/April to discuss the interest in a cooperative business promotion that would be supported by both the business community and the City and a number of ideas were exchanged. Since that time, a sub-committee of business representatives and City staff have been meeting to review efforts in other cities, discussing the specifics of a project and interviewing vendors for the project. (cont'd.) MO~ON BY SSCOh'D TO: .... Review: Administration: Finance: RFA-O01 Request for Action Page 2 9-22-97 The concept idea for the promotion is the development of a New Hope Resident Guide and Business Directory. This concept effectively combines two projects into one. City staff have long wanted to publish a guide for residents informing them of City services so that a variety of City information could be provided under one cover. Staff feel that the current information provided to new residents is not adequate. The business community felt that some type of quality business directory listing businesses with the potential for advertisements would be beneficial. After initial bids were received on both projects, it was determined that both projects could easily and effectively be combined into one project. The result would be a quality city/business publication that would provide information on the City and also serve as a business directory by indexing local retail businesses and their location on a fold-out map and through advertisements. Many cities are currently utilizing this concept and the vendor that the committee would like to hire for the guide/directory, Planet Publications, has published similar city/business guides in Plymouth and St. Louis Park. The concept was presented to and approved by the businesses serving on the committee on September 15 and staff is requesting concept approval from the EDA at this time. More specific details of the proposed project, including costs, responsibilities, etc. are included in the attachments. A sample publication from Plymouth is also enclosed, although New Hope's guide/directory would be in a revised/improved format. The total cost for the project is approximately $30,000, with the City contributing about one-half of that amount and the business community contributing the other one-half through the purchase of advertisements. There are adequate funds budgeted in the 1997/98 EDA budget to cover this expense. City staff will explain more of the details on the project to the EDA at the EDA meeting. Staff is requesting feedback from the EDA and concept approval for the project. If the EDA is agreeable to proceeding, final details will be finalized the first part of October and the contract with Planet Publications will be presented to the EDA on October 13. Resident Guide and Business Directory Presented to the New Hope EDA September 22, 1997 TABLE OF CONTENTS Project Background 1 Major Contract Components 2 1 City Support Letter and Kickoff 2 2 Advertising Rates 2 3 Map/Index of Advertisers 2 4 Listing Fee 3 5 Additional Press Run 3 6 Subsequent Publication Costs 3 7 Production Schedule 3 8 Name of Book 4 9 Time Line 4 10 Previous Spending 4 11 Bottom Line 5 Project Background For the past two years, the City of New Hope partnered with local businesses in an annual event called "Shop New Hope". The purpose of this event was to increase local business activity and patronage by promoting resident awareness of local businesses. Shop New Hope, in conjunction with Duk Duk Daze, was a success in terms of generating excitement, but it did very little to satisfy the goal of increased business activity once the promotional events ended. After several meetings this Spring, the Business Promotion committee decided to take a different approach. A subcommittee consisting of two business leaders, Jim Brinkman and Brian Minette, and three City staff members, Kirk McDonald, Para Sylvester, and Jacquie Desautels, was charged with formalizing a plan and reporting back to the full committee. Ideas that surfaced during the initial meetings consisted primarily of promotional booklets, such as a coupon booklet, to be delivered to every New Hope residence via direct mail. The booklet was to include a map of New Hope and have a center pull-out section of coupons. Meanwhile, City staff was looking at publishing a Resident Guide for the City of New Hope which would describe city services including park and recreation, public works, police and fire departments. After initial bids came in on both projects, the committee decided that the premises of both projects could be combined easily and efficiently into one project. The result is a city/business publication that details city history, provides information on local government and elected officials and also serves as a business directory for the City by indexing local businesses and their location on a fold-out map and through their advertisements. Once the focus was realigned in mid-July, the subcommittee met with three different publication agencies. The SunPost, FocusNews, and Planet Publications made presentations and all had something slightly different to offer. We did not seek formal RFPs because no one could deliver exactly the same product as specified. Considerations such as art design, delivery, size and costs of ads were all elements that received careful consideration as we reviewed the bids. The SunPost, at the last minute, decided not to bid so the decision narrowed to FocusNews and Planet Publications. Strictly in terms of cost, FocusNews was the lower bid. Because their Resident Guides are essentially "cookie cutter" templates that they run on their newspaper press, they are able to provide the booklet for free and recapture all costs through advertising sales. The only costs the City would incur are staff time, the cover design (optional) and door-to-door delivery since their normal medium of delivery is through their newspaper. However, the final product is one which lacks a polished, high quality appeal. Everything from paper weight to art design suggests a lesser quality despite the effort and time commitments from City staff and local business leaders. Although the Planet Publications bid was higher, it is essential to bear in mind that we were not comparing like proposals. At this point, the committee had to take a step back from comparative, financial considerations and examine less tangible considerations such as the overall goal, aesthetic appeal, and public response. Moreover, the City made significant financial contributions in previous years. Compared to those outlays, the Planet Publications proposal is a reasonable contribution (see page 6). Even more important, however, is the fact that the City will have a resident guide that can be of use to every New Hope resident and also to prospective residents. Additionally, local businesses will have a high quality forum in which to advertise that targets their primary clientele base for an extended period of time due to the long shelf life of this publication. For these reasons, the subcommittee opted for the Planet Publications' proposal. Page 1 Major Contract Components 1 City Support Letter and Kickoff The City will send a letter to all businesses in New Hope describing the Resident Guide project and asking for their support through advertising dollars. A schedule of ad rates, provided by Planet Publications, will be included as part of the letter. The mailing list will then be provided to Planet Publications for the purpose of soliciting advertisements. Therefore, no approach to any business should be a "cold call" and will hopefully generate increased enthusiasm and a greater willingness to participate in the Resident Guide. Given this effort by the City, Planet Publications will seek advertisements or listings from every New Hope business, including professional practices. The City will list all churches, schools, and school district information as part of the City edit. These organizations, however, may place an ad if they so choose. The City and local businesses will participate in a "kick oft' once the Council approves the contract. Planet Publications representative, Susan McNulty will be in attendance along with her sales representative. 2 Advertising Rates PROPOSED AD RATES Size Black Only Add? edit color Add? 4 color process (text pages only) (cover pages only) Back Cover $900.00 n/a $300.00 Inside Front Cover $800.00 $300.00 Inside Back Cover $800.00 $300.00 Full Page $700.00 $75.00 Half Page $400.00 $75.00 Two Third Page not a good size for any digest sized publication One Third Page $300.00 $75.00 One Sixth Page $235.00 $75.00 *The ad rates reflect a 20% reduction from the original proposal by Planet Publications. The pro forma was adjusted so that the additional costs were shifted to the City's fee. 3 Map/Index of Advertisers The City will insert a 4-color, fold-out map that is stitched in the center of the booklet. The City will work with its consulting engineer to revise the existing zoning district map by including a grid, shopping center references, as well as park and lake detail. An "Index of Advertisers" will be on the back side of the map and will list every advertiser, regardless of the size of ad purchased, their name, address, and phone number along with a location reference on the map (Example: "Universal Color". ........ "B-4"). Page 2 4 Listing Fee Businesses that do not want to advertise will have the option to purchase a "listing only" for $45. The listing would also include the location reference on the map. Planet Publications agreed to sell listings based on the following conditions: · Planet Publications will hire a telemarketer for a fee of $2,000. This fee includes contacting all businesses on the list, administration, invoice development, postage, entry of business listing in their database, sorting and downloading to our art direction program, copyediting, litho, printing and any collections. The $2,000 fee will remain even if the City of New Hope determines NOT to sell listings. This fee will be applied to the added task of contacting every business in the city. Listing revenues will remain as part of the publisher's revenues. · The price is increased to $45, instead of $35, and Planet Publications will set a COD policy for the listings in order to eliminate the need for collections. 5 Additional Press Run We are confident that a press run of 20,000 will be sufficient, but if demand exceeds our supply, 'additional press run costs are as follows: Quantity Price 48 page book 5,000 $1,800 ~lus MN Sales Tax 48 page book 10,000 $3,200 ~lus MN Sales Tax 64 page book 5,000 $2,200 ~lus MN Sales Tax 64 page book 10,000 $3,800 31us MN Sales Tax Map 20,000 $3,400 31us MN Sales Tax 25,000 $3,700 31us MN Sales Tax 30,000 $4,100 ~lus MN Sales Tax 6 Subsequent Publication Costs The City looked into possible cost savings of the Resident Guide with Planet Publications in future years since the edit will require only minor modification. The publisher said that it would be easier to answer this question once the project is complete. Her initial reaction, however, is that there would be some cost savings to the City, but in the neighborhood of 10%. She said that the edit is actually a very small portion of the total costs. The expenses that will not diminish are printing costs, advertising sales, and art design and these constitute the majority of the expense. As for the City, having the initial edit complete will yield tremendous cost savings in future years. 7 Production Schedule Since this is the first-time all City information will be integrated into one source, we are committed to producing a thorough effort. The Management Intern will serve as the primary copy writer and contact for the project. All department heads will need to review relevant information and the Business Promotion Committee will also have the opportunity to review the final edit before it goes Page 3 to press. Therefore, the production schedule that Planet Publications and the City agree to must take these members and their schedules into consideration and the deadlines must be flexible. Planet Publications will hire a copyeditor to review the first draft and make recommended changes in context and content of edit. The fee for this service is $600. 8 Name of Book The City and local businesses have agreed upon the following title for this publication: "The City of New Hope Resident Guide and Business Directory" 9 Time Line The time line for project and contract approval will follow this schedule: Full Committee approval on 9/15. · City staff will present idea to the City Council on 9~22 to seek concept approval and a motion to continue with project and finalize all necessary contracts. 'o City staff will present contract to City Council on 10/13 and seek approval. · The City anticipates a publication date of January 1998. 10 Previous Spending 1995 The EDA expressed support for the "Shop New Hope" promotion and unofficially committed approximately $32,000 in EDA funds to support the program. The agreement between Key Group Advertising and the City called for a payment of $49,485.00, with $15,750.00 of that amount being contributed by business sponsorships and $33,735.00 being paid by the City. 1996 The EDA approved the concept of conducting another "Shop New Hope" promotion in 1996. The agreement between the City and Key Group Advertising calls for a payment of $46,000 by the City. It was anticipated that at least half ($23, 000) of the total budget amount would be contributed by business sponsorships and that no more than $23,000 would be paid for with.EDA funds. Page 4 11 Bottom Line Total Page Count Display Ad New Hope Fee* Sales Revenue* i"~ g'f &'i'"/';~'"~'~'~ '~' ~'~'~'~'~' ......... ":= .................................. ~,'~ i ............. '~'~'~ i'~'~'~ ~'~'~ i !48 text / 4 page cover $1,000.OOi $19 500.00i 148 text / 4 page cover $2,000.00i $18 500.001 !~"~;~'~'~;"~;'~;~'~;'~ ............ ~ ................. '~§i'~'~:'~'~? ............. i48 text / 4 page cover $4,000.00! $16.500.001 !48 text / 4 page cover $5,000.00i $15.500.00i !48 text / 4 page cover $6,000.00i $15.000.00i i48 text / 4 page cover $7,000.001 $14,500.001 i48 text / 4 page cover $8,000.00i $14 O00.OOi ................................................................................. :~i'~'~:'O'O'.:.' ............. '~'~'~i'~'~:'~'bi ~..t_e..x..t_L~.,,p.,a.g.e.. ,c.o.v.e.r. ............................................................................................. 48 text /4 page cover $10,000.00i $13 000.001 i48 .............................................................................. text / 4 page cover '~';1"~'i'(~'~'~'~'(~'"... ............. '~';l'~i'~'~'(~'~i 48 text / 4 page cover $12,000.00! $12,000.001 ......................................48 text / 4 page '~J~'l:' .......................... '~';l'§i'O'~J['~'(~'i ............. '§';l"~'i'~'~J~'6'~i. i48 .............................................................................. text / 4 page cover '~';i~i'(~'~J~'O'i~T;' ............. ':~';l";l'i'(~'~J]~'~Ji i48 text / 4 page cover $15,000.00i $10,500.00i '48 text/4 page cover $16,000.00i $10 O00.OOi i~;i"/~'i';i'i~';~'~"~;~ ......... i .............. '~'~'~;'i~'~:'i~'iii ................ ! .............................................................. ~ ............................. ~ ........... ; ....................................... 64 text / 4 page cover $18,000.001 $8 500.00i i"(~"z~ ............................... text / 4 page '(~'~'~' .......................... '~';1'~"(~'~'~'(~'(~'.." ................ .............................................................................. '~i~"6'6~'6'6'...' ................ ~.~..!~,x,.!.L~..P,~..g.~..?,.v.,~..r, ............................................................................................. 64 text / 4 page cover $21 O00.OOi $6,000.00i i64 text / 4 page cover $22 000.001 $5,300.001 ~,~..!~t,,~..~..?.~..g.~.?..v..~.r.. .......................... ,~,,,2..~.,.0..0..0... ,0.,0, ,,," ................ .~;,~,,0.,,0.:,,0.,,0.! 64 text / 4 page cover $24 O00.OOi $3,800.001 ~.~,~xt,/..~..?.~..g.~,?.tr.. ............................................................................................. 64 text / 4 page cover $26 O00.OOi $2,000.00i i64 text / 4 page cover $28,000.00i $500.00i [~.t."..x_t.J....4....p...a...~.t.c._°_.v...~r.. ........................ .~.~,..~:.~.~! .......................... ~..~! *Sales Revenue Definition (as defined in proposal): The sales revenue is defined by the collected amount of net dollars AFTER any discounts. NOTE* Planet does not plan to offer discounts but in order to define the above chart dollar figures, the issue must be addressed. The sales revenue DOES NOT include any production rates that are charged to produce ads. It DOES include all color sold.. Any listings revenue is NOT included in the above chart. The proceeds of all listings sold will remain with the publisher. The $45.00 listing price is built on a break-even !evel that will pay for commissions, administration, database management, collections, etc. Page 5 Cost Sharing City Contribution: 1. Fee after ad sales $ 9,100.00 (Based on estimated sales of $17, 000) 2. Telemarketing fee $ 2,000.00 3. Cover design $1,000.00 4. Map design fee by City Engineer $ 640.00 3. Art direction for map $ 400.00 4. Copyediting $ 600.00 5. Additional printing costs (if any) $ 5. City staff time $ Total $13,740.00+ Businesses' Contribution: 1. Display Ad Sales Revenue (estimated) $17,000.00 2. Business leaders' time commitment $ Total $17,000.00+ Page 6