HISTORIC DOWNTOWN SONORA Business Development and Market Opportunities
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1 HISTORIC DOWNTOWN SONORA Business Development and Market Opportunities For the City of Sonora Community Revitalization Plan CITY OF SONORA, CALIFORNIA Lani Lott, President L.L. Consulting lconsulting.com FEBRUARY 2013 Appendix E
2 INTRODUCTION TheCityofSonorahascontractedwithRBFConsulting,ABakerCompanytoassistthecommunity withdevelopingacommunityrevitalizationplan.aspartofthatprocess,commercialdistrict revitalizationconsultant,lanilottisservingontherbfconsultingteam.basedonquantitative researchandanalysis,andfieldworkandinterviewsconductedinsonoraonjanuary2013,ms.lott haspreparedthisbackgroundreportondowntown sbusinessdevelopmentandmarket opportunities,specificallyforhistoricdowntownsonora. Thisreportservesasquantitativeinformationbackgroundresourcetosupportthe recommendationsthatwillbeproposedinthefinalcommunityrevitalizationplan.the quantitativedatainthisreportdoesnotprovideanswersandtheywillnotmakedecisions.they canbeused,however,tostimulateandinformdialogueandassistcityofsonoraleadersinmaking strategicdecisions.pairedwiththequalitativeinformationgatheredthroughthedecisiongroups, businessinterviewsandcommunityworkshopsconductedduringthecommunityvisionweek January17 20,2013,thereportreflectskeyfindingstohelpguidefurtherbusinessdevelopmentin DowntownSonoraandsurroundingcommercialcorridors. 2
3 KEYFINDINGS TheCityofSonoraplaysaprimaryroleinTuolumneCounty sresidents lives.itisamultifunctional,regional commercial,social,medicalandciviccenterthatwouldbetheenvyofcommunitiesthroughoutthenation. Sonora sprimarytradeareacomprisesthe4,796residentswholivewithina5 minutedrivetimeofdowntown. Secondarytradeareacomprisesthe15,011residentswholivewithina10 minutedrivetimeofdowntownand encompassesthecommunitiesofjamestownandcolumbia.tertiarytradeareacomprisesthe51,569residentswho livewithina25 miledrivetimeofdowntown. HistoricDowntownSonoraenjoysastrongmarketpositionasoneofTuolumneCounty sprimarytouristandvisitor destinationsaswellasprovidesthelocalresidentswithavarietyofrestaurant,art,culture,entertainmentand specialtyretailoptions. Sonorahasmultiplytargetmarketstopullfromincludingasolidpopulationbasewithina25minutedrivetimefrom downtown;over13,000employeeswithinsonora sprimaryandsecondarytradearea;estimated3millionvisitors eachyearmaketheirwaytoyosemite;avibrantfairgroundsthatattractsbothresidentsandvisitorsthroughoutthe yearandanumberofsmallercommunitybasedeventsthatappealtotheresidentbase.asaresult,thisdiversetarget marketgroupspresentconsiderableconsumerdemandandbuyingpoweranddowntownservesthemwithahealthy mixofbusinesses. Withinthe10 minutedrivetimefromdowntown,esriestimatesverylittleleakageormarket gaps areflectionofthe NationalDiscounterdrawaswellasthestrongtouristbase.Howeverwithinthe25minutedrivetimeESRIestimates moderateleakageinthefollowingindustrygroups autodealers,furniturestores,buildingmaterial&supplierstores, clothingstores,sportinggoods/hobbies/musicalinstruments/books,othermiscellaneousstoresandfoodanddrinking places.thesemarket gaps, presentpromisingopportunitiesforfurthermarketdevelopmentthroughbusiness expansionandrecruitment. TheCountyofTuolumneisprojectedtogrowtoapproximately60,000residentsby2050.Populationgrowthwillbring theadditionalamountofatotalof1,000newhousingunitsthrough2050(25peryear);4,500newjobsinoffice,retail andothersectorsthuscreating100newjobsperyear;demandfor1.3millionsquarefeetofneedednew development. CityofSonora spartnershipwiththetuolumnecountyeconomicdevelopmentauthoritycanassistwithrepositioning Downtown svacanciestoeffectivelyrecruitnewusestocomplementandsupporttheexistingbusinessmix. Existingbusinessesarefacedwithextensiveopportunitiesforretaining,strengtheningandexpandingbusinessthrough individualbusinessenhancementinitiatives. 3
4 TRADEAREA DEMOGRAPHICS Sonora stradeareaisdefinedasthegeographicalareafromwhichthecitydrawsmostofitslocalcustomers. Generally,customerswilltraveltheshortestdistancepossibletofulfilltheirneedsforgoodsandservices.Convenience shoppingforday to dayneedstypicallyoccursinshorttripsofwithinfivetofifteenminutes.consumersarewillingto travelgreaterdistancestomakelargerpurchasesofcomparisongoodslikehomefurnishings,clothingandautos,orto partakeinentertainment,recreationanddiningexperiences.inruralareas,drivetimesforsuchtripsmaybearound 25minutes. Withinafive minutedriveofhistoricdowntownsonora,thereare4,796individuals.the10 minutedrivetimearea (15,011residents)extendswestandeastandincludesJamestown.Withina25 minutedrivearea(51,569residents) capturesthecommunitiesoftwainharte,tuolumne,columbiaaswellasadditionalsmallercommunitiesalongthe highways. Mostcityresidentslivewithinfive minutedrivetimeofthedowntown.becauseofsonora sroleasaregionalcenter forcommerce(wal Mart;Lowe s,kohl setc.),governmentandmedicalservices,theresidentslivingwithinthe10 minutedrivetimemostlikelytraveltosonoraonaregularbasistoconductbusiness,shopanddine.theresidents livingwithinthe25 minutedrivetimeprobablycometosonoralessoften.asaresult,the5and10 minutedrivetimes definesonora sprimaryandsecondarytradeareaandthe25 miledrivetimedefinessonora stertiarytradearea. Thefollowingchartshowssomekeycharacteristicsforthepopulationsinthesethreeareas.Onthenextpage,adrive timemapplotshistoricdowntownsonora sprimary,secondaryandtertiarytradeareas. SonoraAreaPopulation,2010Population Within5,15and25 minutedrivetimesofhistoricdowntownsonora 5Minutes 10Minutes 25Minutes Population 4,796 15,011 51,569 Households 2,275 6,833 20,048 MedianHouseholdIncome $33,995 $33,305 $38,720 MedianAge SOURCES:ESRI 4
5 5
6 SONORA S MARKETPOSITION TheCityofSonoraplaysaprimaryroleinTuolumneCounty sresidents lives.itisamultifunctional,regional commercial,social,medicalandciviccenterthatwouldbetheenvyofcommunitiesthroughoutthenation. Itboastsadiverseandhealthymixofbusinessesanduses: Governmentoffices SonoraRegionalMedicalCenterandsupportingmedicalservices Rangeofprofessionalandbusinessservices Leadingcenterfortheregion sfinance,insuranceandrealestateindustries Solidmixofconvenienceshoppingdestinationincludingmajorgrocerystores,nationalbrandeateries, Wal Mart,Lowe sandothernationalchains. Incontrast,HistoricDowntownSonorastandsonitsownasavibrantdowntownbusinessdistrictthatoffers residentsavarietyofbusinessesandqualityoflifeamenitiesthatincludes: Artsandculturalvenuesincludingmuseums,performingarts,galleriesandhistoriclandmarks Eclecticmixofindependentrestaurantsandentertainmentofferings Vitalindependentretailconcentrationofferingjewelry,clothing,gifts,antiquesandspecialtyretail Convenientlodgingandvisitorservices Thesamedowntownstrengthsthatattractresidents,incombinationwithvisitordestinations,liketheRed Church,MotherLodeFairgrounds,eventsandgatewaytoYosemite,touristsbythehundredspassthrough downtownsonorathroughouttheyear.asaresult,downtownmaintainsahealthy,tourist orient destinationthatbringsinternationaltravelersseekingoutdooradventureaswellasthegoldrush experience;explorersfromneighboringurbanareasneedingaweekendstayvacationanddaytripperswho justwanttogetawayforthedayandenjoysonora sslowerpassoflifeandlocalhospitality. 6
7 TARGETMARKETS Sonoraisfortunatetobewellpositionedtoservecriticalmarketgroupsthat,ifwelltargeted,willensurea vitalcommunitycorefordecadestocome. TradeAreaResidents Asprofiledpreviously,thereareabout51,569individualswithina25miledrivefromdowntown,15,011 residingwithina10 minutedrivetimeandjustunder4,800residentsinthecitylimitsthusprovidingmuch marketpowerfordowntownaswellasfortheentirecityofsonora. Ofthehouseholdswithinthe10 minutedrivetime,esriclassifiesthetoptapestrysegmentsasseniorsun Seekers,MidlifeJunction,OldandNewcomersandMainStreet,USA.ESRI stapestrymarketsegmentation systemcanbeusedtohelpunderstandmarketsubgroups demandsforgoodsandservicesandreviewthe mosteffectivewaysofmarketingtothem.(seetheappendixfortapestrysegmentdescriptions.) AreaEmployment 1,472businessesarelocatedwithina10 miledrivefromdowntownsonora,withanemploymentbaseof 13,075(ESRI) TuolumneCountyMajorEmployers Employer FullTimeEmployees LocatedinSonora SonoraRegionalMedicalCenter 1200 Sonora TuolumneCountyPublicSchools 1054 SierraConservationCenter 1030 BlackOakCasino 677 CountyofTuolumne 637 Sonora U.S.FederalGovernment 361 Wal Mart 300 Sonora SPI(ChineseCampandStandard) 215 Sonora Sandvik 178 Sonora DiestelTurkeyFarms 150 Sonora AvalonHealthCare,Inc. 140 Sonora SaveMart(UpperandLower) 140 Sonora Kohl's 130 Sonora EvergreenLodge,Groveland 100 FrontPorch 90 Sonora KinematicAutomation 80 Sonora 7
8 TARGET MARKETS Columbia College Just under 4,000 students attend Columbia College (1,003 full time; 2,436 part time) Teaching staff includes 132 full time and 32 part time employees. Visitors About 3 million visitors per year travel to Yosemite each year (Over half of Yosemite National Park is located in Tuolumne County; Close to 8,000 of these visitors signed in at the Tuolumne County Visitor Bureau Sonora location in Tuolumne County is home to two California State Historic Park Railtown 1897 State Historic Park and Columbia Historic State Park. In 2012, Columbia Historic Park 419, 323 visitors. In 2009, it was estimated that 227,484 people attended the Mother Lode Fair and/or events held at the Fairgrounds generating approximately $10,534,000 in spending activity alone. (California Department of Food & Agriculture; Economic Impact of California Fairs, Mother Lode Fair, November 2010) Local events draw both visitors and residents on a regular base ITSA Film Festival, Music in the Park, 4th of July parade etc. 8
9 POPULATIONAND EMPLOYMENT TRENDS WillidanFinancialServicespreparedanoverviewofpopulationandemploymenttrendsinTuolumne County.Thefullmemowithtablesisintheappendixforreference.Highlightsoftheirfindingsinclude: Historically,theoverallpopulationofTuolumneCountysawrobustgrowthinthe80sand90s(withan increaseofnearly40percentfrom1980to1990andovertwelvepercentfrom1990to2000).since2000 thepopulationhasseenmuchmoremodestgrowth,withanoverallincreaseof1.6percentfrom2000to 2010andsimilarincreases,rangingfromonepercenttoovertwopercent,projectedthrough2050.TheCity ofsonora,bywayofcontrast,hasrelativelylessgrowthinthe1980sand1990sandgrewfasterthanthe countygenerallysince2000. PopulationprojectionsforTuolumneCountypreparedbytheCaliforniaDepartmentofFinanceprojects thatthecountywouldgrowtoapproximately60,000residentsby2050,withgrowtheverytenyears averagingfromonetothreepercent.willdanhasalsoextrapolatedagrowthrateforthecityofsonora ofsevenpercenteverytenyears,ontheassumptionthatthecurrentdemographicfactorsfavoring developmentintownsandcitieswillcontinue.basedonthisestimatedpopulationgrowth, WilldanestimatesthattheCitywillseedemandofatotalofapproximately1,000newhousingunits through2050,or25peryear. EvaluatingemploymenttrendsinTuolumneCounty,WilldanestimatesthattheCountywillsee approximately4,500newjobsinoffice,retailandothersectorsthatrequiretheconstructionofoffice andretailspace,through2050,orapproximately100newjobsperyear. Atanaverageof300squarefeetperemployee,WilldanestimatesthattheCountywillseenewdemand ofapproximately1.3millionsquarefeetthrough2040,or45,000squarefeetannually.willdanhasnot beenabletobreakthisprojectiondownintocountyversussonorademand,butexpectsthata significantportionofnewdemandwillbeinsonora.sonorawillcontinuetoseesomedevelopmentas itspopulationgrowsatafasterratethanthecountyatlarge. 9
10 DOWNTOWN S BUSINESSMIX UsingthebusinesslistingontheCityofSonora swebsite,theconsultantcreatedaroughanalysisof downtown sbusinessmix.theanalysisrevealsatotalofabout178businessesinthecommunity RevitalizationPlanprojectareawithoverhalf(58%)representingbusinessesthatappealtothevisitor marketwithanother11%supportingthecourthouseandgovernmentcluster. HistoricDowntownSonoraBusinessMix Antiques 5 3% Apparel 16 9% Art&Entertainment 19 11% Business&PersonalServices 26 15% Civic 3 2% Eating&DiningEstablishments 25 14% Finance,InsuranceandRealEstate 14 8% Lodging 6 3% MedicalServices 11 6% ProfessionalServices 20 11% DowntownEmporium 25 14% VisitorServices&Attractions 8 4% Total % SOURCE:CityofSonorawebsite&brochure 10
11 DOWNTOWN BUSINESSMIX 11
12 BUSINESSSALES POTENTIAL AsthecommercialcenterofTuolumneCounty,Sonora(anddowntown)businessesandprospective businessescanbestanalyzesalesleakageforresidentswithina25 minutedrivetimeofdowntown.sales leakageestimatesindicatebusinessdevelopmentopportunities opportunitiestoexpandexisting businessesoraddnewbusinessestoaddressthe marketgap. Salessurplusesindicateamarketwhere localdemandissaturatedandcustomersarealreadybeingdrawnfromoutsideofthetradearea. ESRIestimatesmoderateleakage,andthusmarket gaps, inseveralindustrygroupsthatpresentpromising opportunitiesforfurthermarketdevelopmentthroughbusinessexpansionandrecruitment.theseinclude autodealers,furniturestores,buildingmaterial&supplierstores,andclothingstores,sporting goods/hobbies/musicalinstruments/books,othermiscellaneousstoresandfoodanddrinkingplaces. Withinthe10 minutedrivetimefromdowntown,esriestimatesverylittleleakage.howeverevenwhere thereisasalessurplus,andthusnosimpleunmetretailgap,sonoracanneverthelessusetheesrinumbers tounderstandretailpotentialandmarketshare.averyencouragingconceptisthatasingleestablishment needstoconqueronlyasmallpercentageofareasalestoachieveamarketsharesufficienttooperatea sustainablebusiness.forexample,acafe(limited serviceeatingestablishment)marketshareofonly10%of annualsalesinthe5 miletradeareawouldrepresentsalesof$658,837. SonoraRetailDemand,Supply,LeakagesandSurpluses,25 MinuteDriveTimeArea 2010PopulationWithin25MinutesofDowntownSonora: 51,569 IndustryGroup Demand (Potential) Supply (Sales) Leakageor Gap MotorVehicle&PartsDealers(NACIS441) $94,013,246 $72,609,100 $21,404,146 FurnitureStores(NAICS4421) $6,022,462 $3,136,314 $2,886,148 BuildingMaterials,GardenEquip(NAICS444) $16,956,613 $10,906,962 $6,049,651 Clothing&ClothingAccessoriesStores(NAICS448) $13,666,025 $7,426,996 $6,239,029 SportingGoods,Hobby/Book&MusicStores(NAICS451) $5,687,914 $3,587,440 $2,100,474 OtherMisc.StoreRetailers $4,543,168 $2,801,439 $1,741,729 FoodServices&DrinkingPlaces $58,765,878 $49,111,152 $9,654,726 SOURCE:ESRI 12
13 BUSINESS DEVELOPMENT OPPORTUNITIES Duringthefour daycommunityvisioningweek,january2013,ms.lottgatheredextensiveideasfor developingbusinessesindowntownsonora.thesebusinessdevelopmentopportunities,highlightedbelow, willbeexploredfurtherasthedowntownsonoracommunityrevitalizationplanproceeds. BusinessEnhancement Helpdowntownbusinessesboosttheiroperatingpracticestostayvitalandcompetitiveintoday s dynamicmarket groupworkshops,in storeconsultations,enhancementscampaigns Extendedhourstrategies BusinessandPropertyOwnerVisitationProgram. Marketingcollateralandsocialmediatobetterpromotethehistoricaspects,amenitiesanddowntown businesses StrongerdowntownVisitorCenterpresence Cooperativeadvertising,promotionsandevents Windowdisplaysandin storevisualmerchandising Storefrontandinteriorrepair,restorationandimprovement Marketanalysisandbusinessplanning Financing BusinessExpansionandRecruitment Marketanalysisandtargetcustomergroupanalysis Businessexpansionandstartupplanning Improvedpresentationofemptystorefronts Businessrecruitmentpaperpacketandwebsitefeatures EntrepreneurialDevelopment Businessdevelopmentopportunitiesmarketingandopportunitysitesmarketing Businessandrealestatefinancingandincentives 13
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