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