Executive Summary: South Delta Business Sustainability Strategy

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

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Principle #1: Retail & Pedestrian Oriented Built Form

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Principle #2: Compelling Storefront Design

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Principle #3: Public Realm that Attracts & Retains People

Features and Strategies

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       

    

Principle #4: Convenient & Accessible Environments

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Easy access encourages return customer visits

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 

Principle #5: Market Dynamics

Principle #6: The Businesses

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Have a captive local market and inflow from regional visitors Minimize the outflow of consumer expenditures

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Mix of quality stores and services providing variety and selection Stable market conditions

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Principle #7: Consistent & Engaged Leadership

Cooperation and coordination between vested interest groups

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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

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Commercial hub location

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B. 12 Avenue and 56 Street – strip malls and plazas around the intersection of 12 Avenue and 56 Street

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Mixture of vehicle‐ oriented strip centre and plazas

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C. Tsawwassen Gateway – entrance to the heart of Tsawwassen

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Closest commercial area to TFN developments

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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:

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Increased density through mixed use development

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Improved walkability

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Condensed commercial area

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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