SOUTH DELTA BUSINESS SUSTAINABILITY STRATEGY EXECUTIVE SUMMARY
Vision: To establish vibrant, sustainable, and resilient downtown environments in Ladner and Tsawwassen through improvements to the quality and viability of existing businesses and the attraction of new viable businesses.
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South Delta Business Sustainability Strategy – Executive Summary
Introduction The South Delta Business Sustainability Strategy was initiated by Delta Council in response to the new mall developments on Tsawwassen First Nation land scheduled to open in 2016 – Tsawwassen Mills and Tsawwassen Commons. With almost 1.8 million square feet of retail space, these two major retail developments will significantly alter the South Delta retail landscape.
Vision To establish vibrant, sustainable, and resilient downtown environments in Ladner and Tsawwassen through improvements to the quality and viability of existing businesses and the attraction of new viable businesses.
Background In November 2014, The Corporation of Delta retained a consultant team led by G.P. Rollo & Associates Ltd. to develop the South Delta Business Sustainability Strategy to help South Delta business owners, commercial property owners, business organizations (Ladner Business Association, Delta Chamber of Commerce, Tourism Delta, and Tsawwassen Business Association), and The Corporation of Delta proactively respond to the Tsawwassen Mills and Tsawwassen Commons developments.
Results Through extensive research, consultation and analysis, the consultant team has developed an action plan to support the South Delta business community. Key immediate actions include (for the full action plan see the end of the Executive Summary): Business Owners: market research and store audit Property Owners: physical building review Business Leadership Groups: proactively engage with The Corporation of Delta Corporation of Delta: Invest in wayfinding signage and create coordination and oversight role for the Strategy through the Invest in Delta Mayor’s Standing Committee
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South Delta Business Sustainability Strategy – Executive Summary
Tsawwassen First Nation Mall Developments Tsawwassen Mills The 1.2 million square foot enclosed ‘Tsawwassen Mills’ is based on the Mills model already in existence at Vaughan Mills in Ontario and Crossiron Mills in Alberta. These malls offer the following retail mix:
55% fashion‐related 30% sporting goods, hobbies, music, and books. (Mostly larger stores such as Bass Pro Shops)
15% home furnishings, electronics, general merchandise, pharmacy and personal care, restaurants and fast food, services, specialty foods, and leisure Tsawwassen Mills will have a super‐regional influence, attracting the majority of its customers from within a 30‐40 minute drive, but will also attract a significant portion of customers from beyond 40 minutes away.
N
Tsawwassen Commons
The 540,000 square foot open‐air power centre ‘Tsawwassen Commons’ will be situated immediately north of Tsawwassen Mills and will be focused mainly on large general merchandise retailers such as Wal‐Mart and Canadian Tire as well as home furnishings and smaller concentrations of apparel, food, service businesses, and restaurants. The primary trade area for Tsawwassen Commons is within a seven‐minute drive time, which translates to all of South Delta. Tsawwassen Commons anticipates 70% of sales volume will be from this area. This puts Tsawwassen Commons in direct competition with existing retailers in Ladner and Tsawwassen. Both Tsawwassen Mills and Tsawwassen Commons are anticipated to open in spring 2016.
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South Delta Business Sustainability Strategy – Executive Summary
Local Overview As part of the research for the South Delta Business Sustainability Strategy, the consultant team undertook an inventory of the existing retail space in South Delta. Combined, Ladner and Tsawwassen currently have approximately 1.2 million square feet of ground floor retail and commercial space, the same amount as Tsawwassen Mills. Tsawwassen has approximately 200,000 more square feet of retail and commercial space than Ladner and the majority of this difference is occupied by the service and food and beverage sectors. The current vacancy rates of approximately 6% in Ladner and 5% in Tsawwassen are comparable with vacancy rates in other healthy business precincts around Metro Vancouver. The table below provides a summary of the existing retail and service commercial space in South Delta.
Retail and Commercial Space Comparison (Square Feet) Vacant
32,575
28,178
Pubs / Lounges
12,265
9,696
Limited Service Restaurants
32,283
23,829
Full Service Restaurants
63,714
28,630
Social Services
31,276
11,428
Entertainment & Leisure
29,775
5,246
Professional Services
63,935
30,875
Personal Goods Repair & Maintenance Services
4,504
Personal & Laundry Services
3,243
36,638
Health Care Services
60,162 44,095
31,353
Financial Services
41,124
15,605
Educational Services
4,019
Administrative Services
4,080 18,411
9,018
Auto Parts, Repair & Maintenance
30,410
21,911
Miscellaneous Store Retailers
35,929
23,772
Other General Merchandise Stores
6,517
15,360
Home Centres & Hardware / Garden Stores
26,507
6,926
Home Electronics & Appliance Stores
10,907
2,596
Home Furnishings Stores
11,553
1,660
Sporting Goods, Hobby, Music & Book Stores
780 1,403
Clothing Stores
Supermarkets
20,966
17,096
Beer, Wine & Liquor Stores
15,171
12,737
26,073
13,254
101,361
Tsawwassen
7,843
20,183
Pharmacies & Personal Care Stores Convenience & Specialty Food Stores
15,053
3,946
Shoes, Accessories & Jewellery Stores
Ladner
84,265
Note: maintaining this inventory will be the responsibility of the Ladner Business Association and Tsawwassen Business Improvement Association
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South Delta Business Sustainability Strategy – Executive Summary
Principles of a Strong Town Centre Principle
Characteristics Commercial uses laid out in a compact, contiguous, and uninterrupted environment. Shopping environments should be designed for maximum pedestrian ease and comfort Attractive storefronts allow retailers to showcase their individuality and branding Unattractive storefronts can detract from individual businesses and adjacent properties Public areas are a constant in a continually changing environment The public realm plays an important role in actual and perceived safety and can support a high quality shopping experience
Principle #1: Retail & Pedestrian Oriented Built Form
Principle #2: Compelling Storefront Design
Principle #3: Public Realm that Attracts & Retains People
Features and Strategies
Principle #4: Convenient & Accessible Environments
Easy access encourages return customer visits
Principle #5: Market Dynamics
Principle #6: The Businesses
Have a captive local market and inflow from regional visitors Minimize the outflow of consumer expenditures
Mix of quality stores and services providing variety and selection Stable market conditions
Principle #7: Consistent & Engaged Leadership
Cooperation and coordination between vested interest groups
Avoid gaps in land uses Minimize storefront width Concentrate retail on core blocks Buildings adjacent to public realm, parking at rear High quality range of signage diversity Inviting window displays Avoid blank walls Clean storefronts with periodic reinvestment Emphasis on pedestrian network Vegetation and street trees Gathering spaces Excellent wayfinding Accessible by all transportation modes Parking strategy to keep spaces in front of retailers clear of long‐term parking Open businesses in evenings and Sundays Understand the customer Leverage one‐of‐a‐kind businesses and events More residents and tourists in and near town centres – density is key for captive local market Anchor retail and public facilities are key Unique shopping experience Positive changes that benefit all stakeholders despite differing objectives Committed leadership of individuals and organizations
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South Delta Business Sustainability Strategy – Executive Summary
Ladner Precinct Analysis To effectively analyze Ladner as a retail and commercial location, the community was divided into four commercial precincts: Precinct Current Characteristics Recommendations Prioritize ground floor uses A. Pedestrian friendly Cluster comparison retail Village Core – 48 Avenue and Street oriented businesses and food and beverage Delta Street tenants to enable multi‐ destination trips Use to incubate businesses in more Low density strip centres affordable spaces and automotive uses B. Good location for No unifying theme Elliott Street destination retailers Strategically located Long‐term redevelopment potential for mixed use Redevelop with denser multi‐storey, mixed use buildings Geographically compact Strengthen role as food C. Overall feel of ‘back of and beverage destination Waterfront – both sides of house’ with notable – sit down restaurants, Chisholm Street exceptions microbreweries, and cafes Add to specialty home furnishings retailer cluster Two open‐air community Continued focus on D. shopping centres convenience retail, fast Ladner Gateway – Ladner Vehicle‐oriented with food, and larger footplate Trunk Road from Central limited walkability retailers Avenue to 53 Street
Key Ladner Recommendations
Leverage heritage feel
C
Create design guidelines for developer certainty
B
Increased density, particularly in the waterfront precinct
D
A
Continued focus on attractive, pedestrian‐friendly design
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South Delta Business Sustainability Strategy – Executive Summary
Tsawwassen Precinct Analysis To effectively analyze Tsawwassen as a retail and commercial location, the community was divided into three commercial precincts: Precinct Current Recommendations
Characteristics A.
Tsawwassen Town Centre – Town Centre Mall and adjacent property
Commercial hub location
B. 12 Avenue and 56 Street – strip malls and plazas around the intersection of 12 Avenue and 56 Street
Mixture of vehicle‐ oriented strip centre and plazas
C. Tsawwassen Gateway – entrance to the heart of Tsawwassen
Closest commercial area to TFN developments
Full redevelopment likely required Focus on mixed use environments with niche and boutique retailers
C
Short‐term: focus on convenience products and services Long‐term – redevelopment as mixed use corridors with condensed commercial space
Act as strong gateway for central Tsawwassen Focus on food and beverage and service commercial Develop stronger pedestrian connections to tie into existing cultural and recreational assets
A
B
Key Tsawwassen Recommendations
Redevelopment of town core, focusing on:
Increased density through mixed use development
Improved walkability
Condensed commercial area
Attractive public realm
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South Delta Business Sustainability Strategy – Executive Summary
Demand & Impact Assessment The South Delta Business Sustainability Strategy includes a category‐by‐category assessment of the maximum impact of Tsawwassen Mills and Tsawwassen Commons on South Delta businesses. Certain categories are projected to see negligible impacts while other categories may have to make changes to counter the significant impacts of the new malls.
Forecasted Sales Decrease
Business Category Supermarkets
15% 17%
Sporting Goods, Hobbies, Music, Books Miscellaneous Store Retailers Personal & Professional Services Food & Beverage
3‐4 years
5.5%
Pharmacy, Personal Care General Merchandise Clothing, Shoes, Jewelry, Accessories Home Centres, Hardware, Garden Stores Home Electronics & Appliance Stores Furniture Stores & Home Furnishings Stores
Recommendation for Success
Revisit offerings and pricing (especially Tsawwassen) Make adjustments based on 2 years merchandising and pricing at new stores Robust real growth in this category will 3 years lead to sales recovery Quicker recovery would require 6 years or more significant population growth
7% ‐ 10%
Beer, Wine, Liquor
Time to Recover to Baseline (2015) Sales
6.5%
2‐3 years
20%
More than 10 years
6.5%
2 years
Nil
N/A
Avoid competing merchandise, focus on specialized local service Recovery is unlikely within 10 years without significant population growth Growth will offset sales loss for the few existing South Delta retailers Limited impact due to niche nature of existing South Delta retailers Niche retailers likely less affected than hunting and fishing – would need strategies on merchandising, price, customer retention Limited impact due to local serving specialized niche retailers
6.5%
2 years
Nil
N/A
Nil
N/A
Needs to remain as a core offering in South Delta
Nil
N/A
May be able to draw additional customers by differentiating from offerings at new malls
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South Delta Business Sustainability Strategy – Executive Summary
Formulation of the Action Plan All of the research, analysis, and consultation feedback for the South Delta Business Sustainability Strategy feeds into the Action Plan – a carefully constructed strategy for South Delta business owners, commercial property owners, business leadership organizations, and The Corporation of Delta to support the long‐term viability of the South Delta business community. The Action Plan was developed through a combination of the following:
Consultation
Research and Analysis
Initial ‘get to know you’ meetings between the consultant team and four key business leadership stakeholders
Development of a vision and analysis of principles of strong town centres Analysis of TFN mall developments
Formal stakeholder meetings of Ladner and Tsawwassen business and commercial property owners (each night was attended by over 50 individuals)
Inventory of existing businesses in Ladner and Tsawwassen Assessment of distinct business precincts in Ladner and Tsawwassen
Individual meetings and phone calls between Delta staff and four key business leadership stakeholders
Projected impacts of TFN mall developments on each business category in South Delta
A meeting of the four key business leadership stakeholders, the consultant team, and Delta staff Two workshops with Council
Case Studies Napanee, Ontario: Effective collaboration and BIA leadership led to physical improvements and downtown beautification Canmore, Alberta: Long‐term progressive planning policies and collaboration amongst key public and private sector players can create authentic pedestrian‐friendly place‐based destinations Sidney, BC: Implementation of initiatives requires sustained leadership, ideally through a steering committee with political representation. Downtown revitalization is linked to economic development Kelowna, BC: Strong leadership through a designated Economic Development staff position and resulting collaboration helped distinguish the Bernard Avenue core through the diversity of food and beverage opportunities from competing retail destinations Revelstoke, BC: Deep local collaboration between government and the community created environment for successful revitalization, including incentive program for façade improvements, summer street festival, public plaza, and coordinated evening opening hours for businesses Danforth East Community Association, Ontario: A resident‐driven organization funded through alternative mechanisms have provided greater sense of community and new methods of engagement
South Delta Business Sustainability Strategy – Executive Summary
Action Plan
Identifying opportunities Responding to Weaknesses Building Organizational Capacity Establishing Networks
3. Monitor & Evaluate
Understanding Existing Conditions
2. Implementing Actions
The South Delta Business Sustainability Strategy includes an Action Plan that offers recommendations for action on the part of business leadership groups (Ladner Business Association, Delta Chamber of Commerce, Tourism Delta, and Tsawwassen Business Improvement Association), individual business and commercial property owners, and The Corporation of Delta. These actions are part of a phased approach including initial groundwork, implementation, and monitoring and evaluation. For more information on the phased approach and details about each action, see the full report.
1. Setting Preconditions
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Meet Customer Needs Respond to New Competition Improving Business Performance Grow New Business Strengthen the Town Cores
Identify Monitoring Metrics Record Quantitative Data Develop Qualitative Information Evaluate Results of Actions Share & Consolidate Information
Legend Business Leadership Groups (Ladner Business Association, Tsawwassen Business Improvement Association, Delta Chamber of Commerce, Tourism Delta)
Business Owners Property Owners The Corporation of Delta *Note: although most actions have multiple responsible organizations, they have been colour‐coded by the lead organization Immediate/Short‐Term Actions (begin within 1 year)
Action
Details
Responsibility
Formalize Ladner Business Improvement Association
Include all business precinct areas in BIA area; can create associate member category for those outside the BIA area
LBA
Review BIA administration capacity
Review whether sufficient administration resources exist for scope of work
TBIA, LBA
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South Delta Business Sustainability Strategy – Executive Summary
Action
Details
Responsibility
Form business owner and property owner advisory groups
Collaborative groups to advise BIAs on issues and needs of each group and jointly tackle major initiatives
TBIA, LBA, Chamber
Proactively engage with The Corporation of Delta
BIA, Chamber, Tourism Delta representatives to frequently meet and present emerging issues to Council and staff
TBIA, LBA, Chamber, Tourism Delta, Corporation of Delta
Form resident membership program
Nominal fee program ($10‐$20) providing discounts and prizes at local businesses
TBIA, LBA, Chamber, Tourism Delta
Examine opportunities for resource sharing
Close collaboration and resource sharing between business leadership groups
TBIA, LBA, Chamber, Tourism Delta, Corporation of Delta
Wider array of festivals and events
Strategically target events, especially in low seasons, to support the sales of existing businesses and incubation of new businesses.
TBIA, LBA, Tourism Delta, Corporation of Delta
Track success of festivals and Use metrics provided in full report to improve events and prioritize funding events
TBIA, LBA
Conduct annual business surveys
Include questions about business health, vitality, and issues such as leases, revenues, and space needs
TBIA, LBA, Chamber
Conduct business and property owner interviews
To gain in depth understanding of key issues, leading to refinement in ideal tenant mix for each precinct and targeted investment
TBIA, LBA, Chamber
Conduct landlord workshops
Provide assistance to landlords looking to improve their buildings
TBIA, LBA, Chamber, Corporation of Delta
Assist tenants to negotiate rent and other inducements with landlords
Targeted rent reductions for businesses impacted by TFN mall developments during transition period
TBIA, LBA
Create business mentorship programs
Assistance for business owners looking to improve image, merchandising, service, and sales performance
TBIA, LBA, Chamber
Coordinate volunteer support for business improvement
Help new or struggling stores with retrofits, revitalization through community volunteers
TBIA, LBA
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South Delta Business Sustainability Strategy – Executive Summary
Action
Details
Create buy local and locally made campaigns
Responsibility
Implement local discounts to encourage cross‐ shopping and promote on social media
TBIA, LBA, Corporation of Delta, Tourism Delta TBIA, LBA, Chamber, Tourism Delta, Corporation of Delta
Develop a shared community Make calendar publicly available events calendar Launch ‘dine around & stay in town’ initiative
Coordinate for South Delta
Install information displays and marketing materials in TFN mall developments and BC Ferries
Focus on town centres and other South Delta attractions
TBIA, LBA, Tourism Delta, Chamber, Corporation of Delta
Consult with branding specialists to determine branding themes for Ladner and Tsawwassen
Revisit suggestions from February 3rd and 4th stakeholder consultation meetings
Tourism, TBIA, LBA, Chamber
Launch pop‐up retail initiative
Work with landlords to utilize vacant storefronts for temporary retailers to incubate potential businesses
Chamber, TBIA, LBA, Property Owners
Undertake market research
Determine who the customer is, how the customer is changing, key competitors, merchandising, pricing, emerging trends, and learning opportunities
Business Owners
Conduct internal store audit
Assess customer flow and physical store condition; pursue consistent store design and intuitive merchandise layout
Business Owners
Conduct external store audit
Assess whether the store is ‘readable’ by passing pedestrians and drivers, whether the entrance is welcoming and well‐maintained, whether the storefront works well at night
Business Owners, Property Owners
Extend store hours
Align hours with needs of dual‐working families by staying open until 7:00 or 8:00 pm and on Sundays
Business Owners
Establish online presence
Website, social media – often where first interaction with customers occurs
Business Owners
TBIA, LBA
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South Delta Business Sustainability Strategy – Executive Summary
Action
Details
Responsibility
Merchandising Improvements
Assess new competition from TFN mall developments to determine whether it is necessary to re‐evaluate suppliers and re‐ merchandise to be complementary
Business Owners
Physical building review
Consider building condition; assist tenants in modernizing dated store concepts, storefronts, and signage
Property Owners
Review lease terms and conditions
Provide terms and conditions that reflect the precinct, ensure term certainty and renewal options, and avoid restrictive use clauses
Property Owners
Work with BIAs on pop‐up shop initiative
Pursue pop‐up shops in vacant buildings
Property Owners, TBIA, LBA, Tourism Delta, Corporation of Delta
Create coordination and oversight role for the Strategy
Provide oversight and coordination through Invest in Delta Mayor’s Standing Committee, hold regular meetings with business leadership groups
Corporation of Delta
Plan for strategic site redevelopment
Accelerate redevelopment timeframes by engaging in joint, streamlined site planning and approval process and offering tax incentives for development
Corporation of Delta, Property Owners
Explore Ladner Waterfront Plan bylaw revisions
Review allowing increased density and alternate development concepts to result in vibrant pedestrian‐oriented waterfront
Corporation of Delta
Incent publicly accessible washrooms
Pursue ideas to implement public washrooms in town centres, including incentives for new development and existing businesses
Corporation of Delta
Invest in washroom trailers
An option to help with the public washroom issue, particularly for events
Corporation of Delta
Allowing street vending can increase vibrancy, but
Explore street vending bylaw needs to be done in collaboration with BIAs to reduce complaints from existing businesses
Corporation of Delta, LBA, TBIA
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South Delta Business Sustainability Strategy – Executive Summary
Ongoing and Longer Term Actions
Action
Details
Communicate progress and opportunities to businesses (ongoing)
Responsibility
Regular newsletters or communiques with updates about town centres and precincts
TBIA, LBA
Maintain list of vacant space in each precinct,
Inventory available retail space lay out in listing map with size, availability, (annually) asking rent, contact info
TBIA, LBA
Conduct retail market research Market data, population growth trajectories, demographics, presented in attractive manner (bi‐annually)
TBIA, LBA
Facilitate leads and match space with tenants (ongoing)
Close working relationship with property owners, can provide introductions between prospective tenants and landlords
Pedestrian and vehicle counts (bi‐annually)
Can help measure marketing and event initiatives and prioritize capital projects
Analysis and dissemination of market data (ongoing)
Tracking of conditions (vacancies, mix, etc.)
Identify resources for assistance (ongoing and as needed)
Connect with BIAs and Chamber as well as other business owners on planned initiatives and potential support mechanisms
TBIA, LBA
TBIA, LBA, Corporation of Delta TBIA, LBA
Business Owners, TBIA, LBA, Chamber
Be present at major events and Opportunity to extend brand and engage with potential customers festivals (ongoing)
Business Owners
Physical inside and outside store improvements (ongoing)
Refresh stores frequently – coordination between business owners and property owners
Business Owners, Property Owners
Monitor sales performance (ongoing)
Helps to know when to re‐evaluate merchandise line, pricing, and suppliers
Business Owners
Keep current (ongoing)
Stay up to date on emerging product lines, competition, opportunities for cross‐promotion and joint marketing
Business Owners
Communicate and review Maintain open line of communication with BIA research and other information and review their market research, updates, and planned festivals and events from BIAs (ongoing)
Business Owners, LBA, TBIA
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South Delta Business Sustainability Strategy – Executive Summary
Action
Details
Responsibility
Review BIA data and other info to evaluate Market trend and tenant category prospective tenants; evaluate current tenants review (ongoing) for fit and market, assess health of current tenant
Attend property owner advisory group meetings (ongoing)
Network with other area landowners (ongoing)
Opportunity to share information and successful initiatives, provide tenant references, coordinate investment and improvements, advocate collectively with BIAs and Corporation of Delta Build relationships key to working together
Property Owners, TBIA, LBA
Property Owners
Property Owners
Monitor trajectory of businesses (quarterly)
Coordinate closely with BIAs on prospective tenants and vacant spaces; track net rents, sales performance, vacancies, turnover rates
Encourage population growth in town centres (within 3 years)
Increase density, height, number of units in Ladner Village and Tsawwassen Town Centre core areas
Corporation of Delta
Recognize town centre precincts within revised Area Plans (within 3 years)
Recognizing the precincts, each with its own character, mix, and specialization will solidify the trajectory and create certainty for business owners, property owners, and developers
Corporation of Delta
Develop town centre design guidelines (within 3 years)
Assists developers understand basic design ideas, aspirations, and expectations and helps Council measure new projects
Corporation of Delta, Property Owners
Pursue new wayfinding initiatives at entrances Strategically invest in public realm and within town centres; undertake additional improvements, coordinating with public realm investments to ensure the retail business district priorities (short environments are safe, clean, accessible, and and long‐term) attractive
Corporation of Delta
Property Owners, Business Owners
Incent development through a variety of targeted measures (short and long‐term)
Strategically utilize property tax freezes, fee waivers, reduced parking requirements, streamlined approvals, joint planning, and joint ventures to induce desired development
Corporation of Delta
Continue to explore water lot lease issue (ongoing)
Continue to pursue increased lease lengths for Ladner Waterfront water lot leases
Corporation of Delta
Explore options for other public realm investments (medium and long‐term)
Consider public wharfs and boardwalks in appropriate locations
Corporation of Delta
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South Delta Business Sustainability Strategy – Executive Summary