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Home My WebLink AboutIR 7915 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7915 May 9, 1995 TE To the Mayor and Members of the City Council v * rxa# Subject: 1873 STATUS OF CITY STORE PROJECT The City Store project was first proposed to Council on January 4, 1994 (I.R. 7787). After that presentation, staff began the process of developing the City Store concept and the business plan. Information was gathered on city store operations in New York, Chicago, Phoenix, and San Diego, among others, and staff visited San Diego's city store operation in May 1994. A prototype City Store was put together by staff for the 1994 Main Street Arts Festival. Given the limited amount of time available to put the location together, the prototype was successful and very well received by the public. The sales data and customer comments from this four-day trial run helped to refine the store concept and provide a basis for determining starting inventory needs. Conceptually, the store would include surplus items such as traffic signs and signals and fire bunker gear, a line of exclusive City logo merchandise, a custom sign shop for creating custom street-name signs on-site, and possibly local artwork on a consignment basis. This mix of products was calculated to- satisfy customer demand and allow the store to remain open when various kinds of surplus items were sold out. Preliminary information was gathered for the business plan, including measures of the local gift and novelty industry's size and growth over previous years and the identification of target markets. Based on this information and the experience of the prototype store, it was determined that the prototype store's location in Sundance Square was viable, so this location was selected and a tentative opening date of November 1994 was selected. A draft surplus policy for City departments was discussed and agreed upon by department personnel. The policy stated that City departments would receive 30 percent of the gross purchase price of the surplus that they provided to the store, and that they would have wide latitude in determining how these proceeds could be spent. The City Store would benefit by providing an incentive to departments to find surplus items, and City departments would be able to accumulate City Store proceeds over time and save up for large one-time purchases, for example. Departments devel9yq,d . .,_, —' ~uwo .,- lists of surplus they currently had to send to the store. I CK RECORD CITf SECRUARY ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7915 May 9, 1995 Page 2 of 2 To the Mayor and Members of the City Council u� �s r= , �Zp Subject: STATUS OF CITY STORE PROJECT 1873 The legal obstacles to opening a City Store were examined and accommodated. The decision to keep the City Store operating as an enterprise fiend within the City organization was based on the outcome of this legal research. Outside vendors were contacted and selections of merchandise made for the logo merchandise. Cost data were gathered for the operation of the store except for the finish-out of the location and the rent. In early October 1994, staff contacted the property management company to discuss the Sundance Square property and found that a lease was to be finalized that week for another tenant. The City was forced to remove its shelving from the location that had been there since the Main Street Arts Festival the previous spring and abandon plans to open the City Store in that location. Since that time, the property management company has proposed that the City open its City Store location on Throckmorton Street near the Tandy Center, but the lack of substantial retail development near this location, the lack of parking, and the low amount of pedestrian traffic makes the location less than adequate for the City Store's needs given the rent demands. At this time, it appears that an attractive downtown retail space is not available in which to locate the City Store. Staff is currently exploring the conversion of the old Code Enforcement space on the south end, ground level of the Municipal Building and Old Fire Station No. 1 at the corner of Commerce and Second Streets as alternatives. Should either of these locations prove suitable, staff anticipates opening the City Store in mid- November 1995. Further information will be provided upon request. r Ty BOB TERRELL � City Manager CITY [-IT. w0gTH, N ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS