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STRATEGIES.[Economic Development Authority on December 1, 2025.]
MICHAEL WARSAW IS HERE.THANK YOU FOR BEING HERE, MICHAEL.
THANK YOU GUYS FOR, YOU'RE GONNA KICK US OFF WITH A, WHERE'S GOING? A REPORT.
WOULD YOU GUYS PREFER THAT I STAND? I WANT MAKE SURE, HOWEVER, HOWEVER YOU'RE COMFORTABLE.
LET'S, LET'S KEEP THE CABINET.
SO, AGAIN, FIRST AND FOREMOST, THANK YOU GUYS FOR HAVING ME UP HERE.
I KNOW THAT, UH, I HOPE THAT YOU GUYS ALL HAD A GREAT THANKSGIVING.
UM, AND WE, UH, WE'LL HOPEFULLY HAVE SOME GOOD NEWS THAT WE CAN TALK ABOUT HERE.
AND, UM, REALLY WHAT I WANNA DO TODAY THOUGH, IS KIND OF BREAK DOWN WHERE WE'RE AT, AT THE END OF, UH, OUR FIRST YEAR WITH, UH, WITH THE TOWN, KIND OF TALK ABOUT PROSPECTS PROCESS AND, AND AGAIN, JUST AN OVERVIEW OF, OF WHAT WE DO, HOW WE DO IT, AND WHO WE ARE.
I THINK THAT ALL OF THAT PLAYS INTO OUR LONG-TERM GOALS AND KIND OF HOW WE OPERATE, AND AGAIN, REALLY FULFILLING THOSE LONG-TERM GOALS OF BRINGING IN RETAIL TO
AGAIN, MY NAME IS MICHAEL WARSAW.
I'M THE SENIOR PORTFOLIO DIRECTOR FOR RETAIL STRATEGIES.
JIMMY PRITCHETT, WHO'S OVER HERE WITH ME.
UM, HE IS YOUR RETAIL DEVELOPMENT ASSOCIATE WHO WORKS ON A DAILY BASIS, REALLY WORKING WITH THE RETAILERS, WITH THEIR BREAKERS, WITH DEVELOPERS AND TENANTS AND JUST EVERYBODY THAT WOULD FILL SPACE OR WOULD TAKE A PIECE OF PROPERTY.
JIMMY IS KIND OF THE GUY THAT DOES ALL OF THAT.
MY MAIN RESPONSIBILITY, OBVIOUSLY, IS WORKING WITH THE TOWN, WORKING WITH OUR PARTNERS, AND WORKING WITH OUR POINTS OF CONTACTS THAT WE CAN COMMUNICATE PROPERLY AND MAKE SURE THAT EVERYTHING IS MOVED INTO THAT DIRECTION.
WE'RE ALSO SUPPORTED ON THE BACK END BY, UH, MADISON BUSH, WHO'S ON OUR TEAM, DOES NOT TRAVEL WITH US.
SHE'S NOT HERE TODAY, BUT A FANTASTIC PIECE OF THAT PUZZLE AND HELPS JIMMY WITH THE RECRUITMENT EFFORTS, UH, ALONG WITH A NUMBER OF OTHER PEOPLE THAT, THAT REALLY HELP OUR TEAM FUNCTION.
SO, FIRST AND FOREMOST, WHO IS RETAIL? S HOW DO WE DO WHAT WE DO? WHAT DOES OUR PARTNERSHIP REALLY MEAN? WHY DO WE DO WHAT WE DO? I, I WOULD SAY THAT REALLY WHAT IT ALL BOILS DOWN TO IS, AND OUR ROLE IN THE PARTNERSHIP REALLY BOILS DOWN TO A COUPLE OF THINGS.
WHAT WE REALLY DO AND WHAT WE ARE GOOD AT IS EFFECTIVELY SURROUNDING THE COMMUNITY WITH OUR MARKET KNOWLEDGE, OUR RELATIONSHIPS, OUR EXPERTISE, AND OUR ABILITY TO BUILD TRACTION AND MOVE RETAILERS IN THE RIGHT DIRECTION.
WE ARE PLACE MAKERS, WE ARE CONSULTANTS.
WE ARE A LOT OF DIFFERENT THINGS.
THERE'S A LOT OF DIFFERENT WAYS, WAYS TO DESCRIBE WHAT WE DO, BUT I THINK IT CAN REALLY ALL BE SUMMARIZED IN WE ARE RETAIL RECRUITERS.
THAT'S OUR JOB, IS TO BRING NATIONAL RETAIL TO YOUR COMMUNITY.
WE DO THAT, LIKE I SAID, BY SURROUNDING YOU WITH ALL OF THOSE OTHER PIECES OF THE PUZZLE.
SO WHERE ARE WE AT RIGHT NOW? WHEN FRONT ROYAL SIGNED, UH, SIGNED OUR CONTRACT, WE OPERATE UNDER A THREE YEAR PARTNERSHIP.
WHAT THAT MEANS IS THAT WE REALLY HAVE STRICT GOALS AND, AND OBJECTIVES THROUGHOUT EACH ONE OF THOSE YEARS OF THE PARTNERSHIP.
RIGHT NOW, WE'RE GONNA BE FINALIZING OUR FIRST YEAR WITHIN THE PARTNERSHIP, AND I THINK THAT IT'S A CRITICAL POINT IN THE PARTNERSHIP AS A WHOLE, REALLY TO DIVE INTO WHY WE DO OR HOW WE'RE DOING, RIGHT? HOW WE'RE DOING, WHAT KIND OF FEEDBACK WE'RE GETTING, WHAT HAVE WE LEARNED IN YEAR ONE FROM RETAILERS, FROM THEIR BROKERS, FROM THE TENANTS, FROM, FROM ALL OF THESE PARTIES THAT COME TOGETHER TO MAKE THESE DEALS HAPPEN.
UM, THE IMPORTANT PIECE, AND THE REASON THAT I'M HERE TODAY IS TO ALSO SAY, WHEN WE GET TO THE END OF YEAR ONE, THIS IS OUR CHANCE TO PIVOT.
IF WE'RE SAYING, HEY, YOU KNOW, THIS CATEGORY OF RETAIL ISN'T NECESSARILY GOING THE WAY THAT WE THOUGHT IT WOULD, OR, HEY, THIS IS WHAT THE MARKET IS SAYING, WE THINK THAT WE'RE OVERSUPPLIED OR WE THINK THAT WE'RE DOING JUST FINE HERE.
YOU KNOW, WHEN WE GET TO THIS POINT IN THE PARTNERSHIP, THIS IS MY CHANCE TO COME TO THE COMMUNITY AND REALLY SAY, HEY, WHAT DO YOU GUYS THINK? AND ULTIMATELY, AT THE END OF THE PRESENTATION, THAT'S KIND OF WHAT I WANT TO GET TO.
IT'S MORE OF A DISCUSSION AND A DIALOGUE TO SAY, LET'S TALK ABOUT WHAT WE'VE HEARD, WHAT'S WORKING.
LET'S TALK ABOUT KIND OF WHERE WE'RE AT FROM A PROSPECT STANDPOINT AND TALK ABOUT REALLY, AGAIN, WHERE YOU GUYS WANNA SEE THE COMMUNITY POSITION.
YOU GUYS ARE ALL OBVIOUSLY STAKEHOLDERS IN THE COMMUNITY.
THAT'S INCREDIBLY IMPORTANT TO OUR MISSION.
SO ONCE WE GET TO YEAR TWO, IT'S REALLY, AGAIN, UH, IT'S FURTHER EXERCISE IN PLEASANT PERSISTENCE IS HOW I LIKE TO SAY WE'RE GONNA ANNOY, UH, DEVELOPERS AND RETAILERS UNTIL THEY GIVE ME AN ANSWER THAT IS HOPEFULLY SATISFACTORY.
AND IF, IF WE'RE, UH, IF WE'RE NOT, REALLY WHAT WE'RE DOING IS WE'RE JUST RELYING ON THOSE RELATIONSHIPS.
WE'RE PUSHING THOSE RELATIONSHIPS TO MAKE SURE THAT WE CAN GET ANSWERS.
WE CAN GET, HOPEFULLY FRONT ROYAL, PUT ON A LIST THAT MAYBE THEY'RE NOT ALREADY ON.
AND IF FRONT ROYAL'S NOT, IF, IF FRONT ROYAL IS ON THE LIST, WE WANNA MAKE SURE THAT FRONT ROYAL'S ACTUALLY ON THE HIGHER END OF THAT LIST FOR RETAIL OPENINGS BY THE TIME WE GET TO YEAR THREE.
WHAT WE'RE DOING AT THIS POINT IS WE'RE HOPEFULLY SEEING THOSE NEW STORE OPENINGS.
IT'S ESPECIALLY RIGHT NOW IN THE CURRENT CLIMATE, WE'RE DEALING WITH TARIFFS.
WE'RE DEALING WITH, UH, STILL STEADILY HIGH AND CONSTRUCTION PRICES.
LAND PRICES ARE NOT SETTLING ANYTIME SOON, ESPECIALLY IN NORTHERN VIRGINIA.
THERE'S A LOT OF THINGS THAT PLAY INTO IT.
WHAT HAS HAPPENED IS THAT HAS SLOWED DOWN OUR TIMELINE, UNFORTUNATELY.
UM, THE WAYS THAT COMMUNITY CAN HELP, I WOULD TELL YOU ALWAYS PUSH FOR, UH, FASTER PERMITTING, ALWAYS
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PUSH FOR JUST A FASTER PROCESS BEHIND THE SCENES.THOSE KIND OF THINGS MAKE A BIG IMPACT.
BUT BY THE TIME WE GET TO YEAR TWO AND THREE, THAT'S WHERE WE START TO SEE THESE DEALS COME, COME TO FRUITION.
NOW, I WILL BE THE FIRST ONE TO SAY THIS.
LIZ'S PROBABLY HEARD THIS A HUNDRED TIMES, AND I'M, I APOLOGIZE IF YOU'RE HAVING ME HEAR IT AGAIN.
UM, COUNSEL WILL HEAR IT TONIGHT AS WELL.
YOU GUYS ARE THE LOCAL EXPERTS.
WHAT JIMMY AND I AND MADISON AND CLAY AND OUR WHOLE TEAM, WHAT WE ARE REALLY GOOD AT IS NATIONAL RETAIL.
WE HAVE RELATIONSHIPS WITH THE RIGHT PEOPLE.
WE HAVE DATA THAT, THAT SINGS THE, THE SAME DATA THAT THE RETAILERS ARE USING.
WE'RE USING THE SAME THING AS THEM.
WE'RE REALLY GOOD WITH NATIONAL RETAIL REAL ESTATE.
WE ARE INCREDIBLY DEPENDENT UPON THE PARTNERSHIP AND UPON OUR STRUCTURE THAT WE HAVE HERE, FOR THOSE LOCAL UPDATES, FOR HAVING THE MARKET KNOWLEDGE TO SAY, HEY, THIS IS WHAT WE THINK IS COMING.
THIS IS WHAT WE'VE HEARD IS COMING, THIS IS WHAT MIGHT BE COMING.
THIS IS WHATEVER THAT MIGHT BE.
WHETHER IT'S A RUMOR, WHETHER IT'S A FACT.
THOSE LITTLE PIECES OF THE PUZZLE REALLY HELP OUR STORY WHEN WE'RE OUT RECRUITING NATIONAL RETAIL.
SO, AGAIN, I'M NOT A LOCAL EXPERT.
MY WHOLE FAMILY ACTUALLY IS IN NORTHERN VIRGINIA.
IT'S KIND OF MY SECOND BACKYARD.
I'M UP HERE ALL THE TIME, BUT I WILL NEVER KNOW FRONT ROW THE WAY THAT YOU GUYS KNOW, FRONT ROW.
AND THAT IS A REALLY, REALLY FINE LINE THAT I WANT TO MAKE SURE YOU GUYS UNDERSTAND.
EVERYBODY IN THE COMMUNITY UNDERSTANDS TOO.
NOW, WHEN WE DIVE INTO OUR PROCESS, WHAT I WANNA HIGHLIGHT IS, IS REALLY STARTING FROM THE BASELINE.
WHAT WE DO IS WE START WITH DATA, RIGHT? WE'RE A DATA DRIVEN.
WE'RE IN A DATA-DRIVEN INDUSTRY.
IT IT, IT COMES DOWN TO A LOT OF THINGS.
IT'S A LOT ABOUT THE DIRT, IT'S A LOT ABOUT THE SITES, IT'S A LOT ABOUT TOBO AND ALL OF THOSE KIND OF THINGS.
RETAILERS SPEND MILLIONS OF DOLLARS ON THEIR DATA DEPARTMENTS.
THEY HAVE ENTIRE TEAMS THAT ARE BUILT AROUND USING DATA TO SELECT THEIR NEXT LOCATIONS USING DATA TO FIGURE OUT WHERE THOSE LOCATIONS MIGHT BE SUCCESSFUL.
THERE ARE RETAILERS THAT CAN PINPOINT THE EXACT INTERSECTION THEY WANT TO BE AT, AND THEY WILL SIT ON THOSE SITES FOR YEARS UNTIL IT COMES TO PROVISION.
THEY KNOW WHERE THEY WANT TO BE BASED ON THIS DATA.
WE BUILD OUR DATA IN A WAY THAT RETAILERS ARE GONNA UNDERSTAND IT IN A WAY THAT RETAILERS ARE GOING TO IDENTIFY WITH THAT RETAIL, WITH THAT DATA, AND THEY'RE GONNA UNDERSTAND WHAT WE'RE KIND OF PITCHING, RIGHT? SO THE WAY THAT WE LOOK AT FRONT ROYAL IS VERY DIFFERENT THAN THE WAY THAT A RETAILERS DON'T LOOK AT FIRM OIL.
AND I SAY WE, BECAUSE AGAIN, WE'RE LOOKING AT IT FROM A CONSTITUENT BASIS.
WE'RE LOOKING AT IT FROM POPULATION BASIS.
IN THOSE TOWN LIMITS, ABOUT 15,000 PEOPLE HEADING TOWARDS 16.
GOOD GROWTH, STABLE GROWTH, GOOD JOBS, EVERYTHING'S GREAT.
RETAILERS DON'T LOOK AT BOUNDARIES.
THEY DON'T LOOK AT THOSE LINES ON THE MAP.
THEY DON'T CARE ABOUT THOSE LINES ON THE MAP.
IT'S ACTUALLY ONE OF THE FUNNY THINGS FOR US IN, IN THE FEEDBACK THAT WE'VE GOTTEN IS, YOU KNOW, WE'LL TALK TO A RETAILER AND THEY'LL SAY, WELL, WE'RE WORKING ON A DEAL IN FRONT ROYAL.
AND I SAY, WHERE IN FRONT ROYAL, WELL OVER BY, UH, OVER BY THE TARGET IN THE WALMART SAID, WELL, WHAT CAN I DO TO SHIFT YOU DOWN SOUTH? RIGHT? RETAILERS DON'T LOOK AT THOSE BOUNDARIES.
THEY LOOK AT WHAT'S CALLED A CTA.
SO IT'S, WELL, IT'S ANOTHER SLIDE DOWN, BUT THEY LOOK AT IT FROM A DEMOGRAPHIC BASIS.
THEY WANNA UNDERSTAND THEIR ACCESS TO POPULATION, THEY WANNA UNDERSTAND THEIR ACCESS TO INCOMES.
WHAT THAT MEANS IS THEY'RE LOOKING AT IT FROM DRIVE TIME AND TYPICALLY A RADIAL RING BASIS.
SO TYPICALLY WE'RE, WE'RE KIND OF SHOWING A, A STANDARD AVERAGE, WHAT LIKE A QSR, QUICK SERVICE RESTAURANT DRIVE THROUGH, KIND OF TOUCH WHAT THEY'RE GONNA LOOK AT.
SO THREE TO FIVE MILE RADIAL RING, AND IT'S A FIVE TO 10 MINUTE DRIVE TIME.
NOW, THIS IS GONNA BE THEIR FIRST, THEIR FIRST PIECE OF THE ANALYSIS, AND THIS IS WHERE IT GETS REALLY INTERESTING.
IF YOU, IF YOU GET THE CHECK MARK ON THIS AND YOU GET THE THUMBS UP ON THIS, THEY'RE GONNA DIG ANOTHER LAYER DEEPER.
THEY'RE GONNA RUN A FULL DEMOGRAPHIC REPORT.
WHAT THAT'S GOING TO INCLUDE IS A CTA THAT'S BASED ON YOUR MOBILE DATA COLLECTION.
THERE'S TWO WAYS TO PULL, GENERALLY SPEAKING, TO PULL ACCURATE REPRESENTATIONS OF WHERE YOUR CONSUMERS ARE COMING FROM OR WHERE, IF YOU'RE A RETAILER, WHERE THE COMPETITION, WHERE THE, WHERE THE TRAFFIC IS COMING FROM.
YOU CAN DO EITHER CREDIT CARD STATEMENTS, CREDIT CARD, UH, DATA, BASICALLY BUYING DATA FROM VISA, MASTERCARD, AMERICAN EXPRESS, THAT DIRECTLY SHOWS EXACTLY HOW MANY CREDIT CARDS ARE BEING SWIPED THAT ARE RELATED TO A SPECIFIC ZIP CODE.
THAT IS BY FAR THE SINGLE MOST ACCURATE WAY TO RECORD THIS KIND OF DATA.
IT'S ALSO, SHOCKER, THE MOST EXPENSIVE WAY TO TRACK THIS KIND OF DATA.
AMEX IS NOT GONNA LET GO OF THEIR DATA FOR FOR CHEAP, RIGHT? WHEN YOU TALK TO THE BIGGEST, THE MOST COMPLEX, THOSE PUBLICLY TRADED RETAILERS, THAT'S GONNA BE HOW THEY'RE GONNA ULTIMATELY DETERMINE THEIR, THEIR OPENINGS.
IT'S ALSO GOING TO BE DIRECTLY RELATED TO GENERALLY THE SALES.
SO THEY'RE ABLE TO LOOK AT WHAT KIND OF SALES ARE THESE STORES
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ACTUALLY GETTING? WHAT KIND OF SALES ARE YOUR MAJOR TRAFFIC DRIVERS GETTING? AGAIN, ALL OF THAT IS INCREDIBLY IMPORTANT.IT'S ALSO INCREDIBLY EXPENSIVE.
YOU'VE GOTTA HAVE STORES THAT COST TENS OF MILLIONS OR EVEN, I MEAN, THERE ARE SOME STORES.
COSTCO, FOR EXAMPLE, IT'S A HUNDRED MILLION DOLLAR STORE, RIGHT? YOU GOTTA BE WILLING TO MAKE THOSE KIND OF INVESTMENT DECISIONS TO BE ABLE TO, TO BE WILLING TO SPEND THAT.
SO THE MAJORITY OF RETAILERS ARE USING WHAT'S CALLED MOBILE DATA TRAFFIC.
THERE'S A COUPLE OF DIFFERENT PROVIDERS IN THE INDUSTRY.
PLACER GENERALLY CONSIDERED THE MOST COMMON OR THE MOST WIDELY KNOWN, UH, IN THE INDUSTRY.
WE USE A SLIGHTLY DIFFERENT METHOD, UH, OR A DIFFERENT PROVIDER CALLED ZERO.
THEY'RE REALLY FOCUSED ON WHAT WE DO AND HOW WE DO IT.
SO, AGAIN, I THINK PLACER IS A FANTASTIC TOOL.
WE'VE TALKED ABOUT THIS A NUMBER OF TIMES.
PLACER A GREAT TOOL, ESPECIALLY FOR TOWNS AND CITIES TO REALLY IDENTIFY WHERE PEOPLE ARE COMING FROM FOR ALL KINDS OF DIFFERENT EVENTS.
THAT'S WHY IT LOOKS A LITTLE BIT DIFFERENT.
IF YOU'RE FAMILIAR WITH PLACER, THAT'S THE ONLY REASON I SAY THAT.
WHAT WE'RE LOOKING AT RIGHT HERE, THOUGH, IS A SEVEN IS 70% OF THE TRAFFIC DRAW TO THE ROYAL PLAZA SHOPPING CENTER.
SO THIS IS WHERE 70% OF THE TRAFFIC IS COMING FROM.
NOW, IT'S CRITICALLY IMPORTANT THAT I KIND OF TELL YOU GUYS WHY WE USE 70%.
THE REASON IS BECAUSE THERE'S AN ADDITIONAL 30% THAT'S GOING TO INCLUDE, INCLUDE GUYS LIKE JIMMY AND I THAT ARE COMING FROM ALABAMA.
IN THAT 30%, YOU'RE GONNA SEE PEOPLE COMING FROM LOUDOUN COUNTY AND FAIRFAX COUNTY.
YOU'RE GONNA SEE PEOPLE COMING FROM DC AND MARYLAND, RIGHT? THAT'S WHERE THAT OTHER 30% IS CAPTURED.
BUT WHEN A RETAILER'S MAKING A DECISION THAT, I MEAN, TRUTHFULLY, IT COULD BE SOMEBODY'S JOB ON THE LINE, RIGHT? YOU KNOW, YOU'RE MAKING A MULTIMILLION DOLLAR DECISION.
YOU GOTTA MAKE SURE THAT IT'S GONNA BE ACCURATE.
70% IS GENERALLY CONSIDERED THE RULE OF THUMB FOR ACCURATE DATA AND A CONSISTENT DATA, CONSISTENT SHOPPER.
THESE ARE THE PEOPLE THAT ARE GONNA BE MORE LOCAL, MORE LIKELY TO BE HERE ON A REGULAR BASIS.
THEY'RE GONNA HAVE MORE TRIPS PER YEAR, THAT SHOPPING CENTER FOR THAT RETAILER.
WHAT WE DO THOUGH, IS WE TAKE ALL OF THIS, WE TAKE ALL OF THE RETAILERS ACROSS THE TOWN, AND WE'RE ABLE TO CREATE WHAT'S CALLED A CTA SO THAT CTA IS THEN SPREAD OUT AND ACTUALLY CREATES AN ACCURATE REPRESENTATION OF WHERE YOUR CONSUMERS ARE COMING FROM.
THE REASON THAT THIS IS IMPORTANT IS BECAUSE THIS IS THE TRUE REACH THAT A RETAILER COULD HAVE OR WOULD HAVE WHEN THEY ENTER FRONT ROYAL.
THE REASON THAT THIS IS IMPORTANT IS BECAUSE, AGAIN, THOSE BOUNDARIES DON'T MATTER.
TYPICALLY, RETAILERS ARE GONNA DO A QUICK ANALYSIS, AND THEY'RE GONNA LOOK AT THOSE, THEY'RE GONNA LOOK AT THOSE RADIAL RINGS, THEY'RE GONNA LOOK AT THAT DRIVE TIME, AND THEY'RE EITHER GONNA GIVE YOU A THUMBS UP OR A THUMBS DOWN.
WHAT WE WANT TO DO IS HAVE THE TOOLS TO SELL FRONT ROYAL AT A DEEPER LEVEL.
WE'RE TRYING TO SAVE THEM THE TIME, RIGHT? ULTIMATELY, IT'S HUMANS THAT ARE MAKING THESE DECISIONS.
HUMANS TYPICALLY TAKE THE PATH LEAST RESISTANCE.
WE WANNA MAKE A DECISION EASY FOR THEM.
THE REASON THAT WE DO THIS THOUGH, IS BECAUSE IT GIVES THAT ACCURATE REPRESENTATION.
SO WHEN WE LOOK AT THAT, WHAT THAT MEANS IS WE'RE BLOWING OUT YOUR NUMBERS, RIGHT? WE'RE EXPANDING THAT TRADE AREA AND THE ACCESS TO CONSUMERS THAT THESE RETAILERS ARE GONNA HAVE.
SO A REALISTIC ACCESS TO CONSUMERS, THAT'S WHAT WE'RE AFTER.
THAT MEANS THAT IF A RETAILER WERE TO OPEN IN FRONT ROYAL, THEY HAVE A REALISTIC, MAKING SOME ASSUMPTIONS HERE.
THEY HAVE REALISTIC CHANCE OF ATTRACTING AND HAVING A MARKET OF 55,000 PEOPLE TODAY THAT THEY COULD CAPTURE.
THEY HAVE A REALISTIC CHANCE IN 2029 OF CAPTURING 57,000 PEOPLE AS PART OF THEIR CONSUMER TRADE AREA.
THE REASON THAT THIS IS IMPORTANT IS IT CHANGES THE ENTIRE METRIC.
IT CHANGES THE NUMBERS FOR A RETAILER, AND IT ALLOWS US TO GO AFTER RETAILERS THAT MAKE SENSE FOR A COMMUNITY THAT REALLY IS PULLING FROM A MUCH BROADER AREA.
AGAIN, DATA'S NOT EVERYTHING, BUT DATA IS EXTREMELY HELPFUL IN TELLING A STORY THAT REALLY NEEDS TO BE TOLD.
IT ALLOWS US TO CUT THROUGH A LOT OF THE FAT, GET TO A DEEPER LAYER VERY QUICKLY.
IT ALLOWS US TO ULTIMATELY GO OUT THESE RESELLERS AND SELL THEM ON FIRM.
WELL, SO I'M GONNA DIVE INTO THE ACTUAL RECRUITMENT.
THIS IS THE, UH, THE SCORECARD, THE SCOREBOARD, WHATEVER YOU GUYS WANNA CALL IT.
WE'RE GONNA KIND OF DIVE INTO WHAT THE FEEDBACK HAS BEEN, WHAT WE'RE DEALING WITH, WHAT WE'RE FACING, WITH WHAT WE'RE HEARING FROM THE MARKET, AND WE'RE GONNA ALSO TALK ABOUT A, AGAIN, A LITTLE BIT OF THE PERFORMANCE OF YOUR EXISTING RETAILER, WHICH I THINK IS ALSO CRITICALLY IMPORTANT.
SO, FIRST AND FOREMOST, I WANNA DIVE INTO THE ACTUAL PERFORMANCE WE'RE GONNA TALK ABOUT.
THIS IS YOUR MARTIN'S GROCERY STORE.
I ACTUALLY, UH, WAS TELLING LIZZIE A WHILE AGO THAT WE HAD THE CHANCE WHEN WE FIRST GOT INTO TOWN THIS MORNING, WE WENT OVER TO MARTIN'S, AND I'M NOT SURPRISED, BUT THERE WAS BASICALLY NOT A SINGLE PARKING SPOT.
IT'S THE NUMBER TWO LOCATION FOR MARTINS IN THE OVERALL DMA.
THAT'S A REALLY, REALLY, REALLY GOOD THING.
IT'S ALSO SOMETHING THAT RETAILERS OUTSIDE OF MARTIN'S, OUTSIDE OF FRONT ROYAL, ARE GOING TO PAY ATTENTION TO.
THEY WANT TO KNOW THAT RETAILERS, ESPECIALLY LARGE SCALE RETAILERS, HAVE
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A GOOD DRAW, AS IN THAT THEY'RE PULLING A GOOD NUMBER OF CONSUMERS FROM A BROADER AREA, AND THEY WANT TO KNOW THAT THEY'RE DOING WELL.THOSE CONSISTENT VISITS ARE WHAT ARE REALLY IMPORTANT TO PEOPLE.
THAT'S WHY I WOULD SAY, I DON'T KNOW, JIM, HALF OF THE RETAILERS ARE GONNA TELL US THAT WE WANNA BE IN A GROCERY ANCHOR SHOPPING CENTER.
IT'S BECAUSE GROCERY IS VISITED MORE THAN ANY OTHER RETAIL CATEGORY.
RETAILERS REALLY LOOK AT THAT AND THEY WANT THAT TRAFFIC.
SO THE FACT THAT WE'VE GOT A MARTIN THAT IS DOING SO WELL, IT'S INCREDIBLY IMPORTANT.
IT MEANS THAT WE HAVE A REALLY GOOD SHOT OF LANDING SOME OF THESE OTHER RETAILERS THAT ARE GONNA BE REALLY, THAT ARE GONNA HAVE A GOOD SYNERGY WITH THE GROCERY.
SO, AGAIN, WE CAN, WE CAN, UH, DIVE INTO THAT IN MORE DETAIL.
I'M HAPPY TO ANSWER QUESTIONS ON KIND OF THE PERFORMANCE AND HOW THEY'RE DOING.
WE CAN DIVE INTO IT A HUNDRED DIFFERENT LAYERS AND DIFFERENT WAYS.
THE OTHER ONE I WANTED TO HIGHLIGHT WAS YOUR STARBUCKS.
YOU HAVE THE NUMBER 13 STARBUCKS IN THE OVERALL DMA.
THAT IS, UH, THERE ARE, I FORGET MY NUMBER.
WHAT IS IT? 250 STARBUCKS IN THE DMA TO HAVE THE NUMBER 13 IS, UM, IMPRESSIVE, WOULD BE KIND OF AN UNDERSTATEMENT.
YOU GUYS WANT A LOT OF COFFEE, AND THIS IS THE, THIS IS THE SOUTHERN STARBUCKS, BY THE WAY, NOT THAT NORTHERN.
THAT IS A CRITICALLY IMPORTANT STORY THAT WE HAVE TO BE ABLE TO TELL, WHICH IS THE FACT THAT THE INTERSTATE, IT'S IMPORTANT.
WE UNDERSTAND THAT IT'S OBVIOUSLY YOUR MAIN MOTOR TRANSPORTATION TO AND FROM DC.
WE ALL KNOW KIND OF, WE UNDERSTAND THAT.
BUT WHAT THIS TELLS ME, AND WHAT THIS TELLS A RETAILER IS THAT A RETAILER CAN DO WELL BY NOT NECESSARILY HAVING TO BE ON THE INTERSTATE.
YOU DON'T HAVE TO RELY ON THAT INTERSTATE TRAFFIC TO BE SUCCESSFUL IN FRONT ROYAL.
YOU'VE GOT A CAPTIVE AUDIENCE.
YOU'VE GOT A LARGE NUMBER OF COLLEGE STUDENTS.
YOU'VE GOT A BROAD AND DIVERSE CONSUMER BASE THAT WILL SUPPORT RETAIL IN FRONT ROYAL.
IT DOESN'T HAVE TO BE AT THE INTERSTATE.
AGAIN, THAT'S REALLY, REALLY IMPORTANT TO US BECAUSE THAT TELLS VERY, VERY, VERY CRITICALLY IMPORTANT STORY, WHICH IS GET AWAY FROM THE INTERSTATE GUYS.
YOU CAN FOCUS ON OTHER OPPORTUNITIES IN TOWN.
SO AGAIN, DATA IS ALL VERY IMPORTANT.
WHAT IT ALL MEANS AND WHAT IT ALL BOILS DOWN TO, AND WHAT ALL THE DATA TELLS US, AND WHAT OUR RECRUITMENT EFFORTS BEEN FOCUSED ON.
THOSE FOUR UNIQUE CATEGORIES OF RETAIL, THOSE CATEGORIES OF RETAIL ARE FULL SERVICE RESTAURANTS.
THESE ARE GONNA BE YOUR SIT DOWNS, YOUR, UM, OLIVE GARDENS AND LONGHORNS AND THINGS LIKE THAT.
QUICK SERVICE RESTAURANTS, THESE ARE GONNA BE YOUR DRIVE THROUGHS.
TYPICALLY GONNA BE MORE FOCUSED ON THE FAST FOOD KIND CATEGORIES.
WE ALL KNOW, WE ALL KNOW THOSE SOFT GOODS.
THIS IS GONNA BE, UH, YOUR CLOTHING, YOUR SHOES, YOUR, UM, HOME SUPPLY, HOME GOODS, THINGS LIKE THAT.
HOSPITALITY, OBVIOUSLY IT'S GONNA BE HOTELS.
AND I'M GONNA CUT TO THE CHASE HERE AND SAY, I THINK THAT ONE OF YOUR BIGGEST OPPORTUNITIES, AND ONE OF THE THINGS THAT JIMMY AND I AND OUR TEAM HAVE DUG IN ON IS THAT HOSPITALITY SECTOR.
WE HAVE GOT TO ATTACK THE HOSPITALITY SECTOR AT THIS POINT.
WE'VE TALKED WITH EVERY MAJOR FLAG, BUT THAT MEANS WE'VE TALKED WITH, UM, ALL OF THE MAJOR HOTEL OPERATOR CHAINS, THE ONES THAT OWN ALL OF THOSE SUB-BRANDS.
WE'VE TALKED WITH EVERY SINGLE ONE OF THE MAJOR OPERATORS.
WE'VE GOTTEN REALLY GOOD FEEDBACK.
WE'VE EVEN EXPLORED SOME OF, UH, WHAT I WOULD SAY ARE MORE UNIQUE CONCEPTS THAT A LOT OF OTHER COMMUNITIES MAY NOT EVEN HAVE ACCESS TO BECAUSE OF YOUR RELATIONSHIP TO THE NATIONAL PARK.
THAT IS A SELLING POINT FROM A HOSPITALITY STANDPOINT THAT WE ARE PUSHING LIKE CRAZY.
UM, ULTIMATELY THE WAY THAT WE LOOK AT THIS THOUGH, IS HAVING THAT HOSPITALITY.
HAVING SOMETHING THAT WILL ATTRACT THOSE, I'LL SAY THE DC DOLLARS, RIGHT? HAVING SOMETHING THAT'S GOING TO ATTRACT THOSE PEOPLE, GET THEM TO STAY THE NIGHT, NOT JUST COME IN FOR A DAY TRIP, BUT ACTUALLY SPEND A NIGHT HERE, ULTIMATELY WILL LEAD TO MORE DOLLARS BEING SPENT ON FULL SERVICE RESTAURANTS.
YOU'LL HAVE A MORE CAPTIVE AUDIENCE.
YOU'LL HAVE MORE PEOPLE IN TOWN THAT ARE SPENDING DOLLARS ON THOSE NATIONAL CHAINS, BUT THEY'RE ALSO GONNA SPEND MONEY AT THE MOM AND POPS.
AND I WILL TELL YOU, I THINK THAT YOUR MOM AND POPS ARE GONNA BE EVEN MORE SUCCESSFUL BECAUSE OF THOSE HOTELS.
PEOPLE ARE COMING INTO THE COMMUNITY.
THEY WANT TO EXPERIENCE THE LOCAL FLAVORS, THE LOCAL TASTE.
SAME, SAME REASON THAT YOU'RE GONNA GO TO WARRINGTON OR ANY OF THOSE OTHER, YOU KNOW, CUTE SMALL TOWNS, RIGHT? YOU WANT TO EXPERIENCE WHAT THEY HAVE TO OFFER.
IT'S KIND OF BEEN OUR MISSION FROM DAY ONE IS FOCUS ON THE HOSPITALITY, FOCUS ON THEM.
AT THE SAME TIME, WE'RE STILL RECRUITING ACROSS ALL CATEGORIES.
SO I THINK THAT THAT'S ANOTHER PIECE I WANTED TO SAY.
SO, SCOREBOARD
WHAT I'VE DONE IS I'VE CATEGORIZED EACH ONE OF THOSE BY SPECIFIC SECTOR WITHIN RETAIL.
SO RIGHT NOW, WE'VE TALKED WITH AND ARE TARGETING, LET ME SAY THAT WE ARE TARGETING 20 SPECIFIC RESTAURANTS AND FOOD SERVICE OPERATORS.
WE'RE TARGETING 10 SOFT GOODS RETAILERS AND HAVE OUTREACH.
WE'VE DONE OUTREACH TO ALL OF THESE FYIS, THESE WE'VE ACTUALLY TALKED TO AND COMMUNICATED WITH ALL OF THESE.
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FOR HOSPITALITY, LODGING, AGAIN, UNDERSTAND THIS IS AT THE TOP, TOP, TOP OF THE LEVEL.SO THERE ARE FOUR REALLY THAT OWN AND OPERATE AND MANAGE, UM, ALL OF YOUR OTHER HOTEL BRANDS.
IT'S, IT GOES WITHOUT SAYING KIND OF WHO THOSE ARE.
UM, ODDLY, A LOT OF THEM ARE ACTUALLY BASED IN THE DMV, WHICH IS VERY HELPFUL.
THEY KNOW THE MARKET, THEY UNDERSTAND THE MARKET 'CAUSE THEY'RE HERE.
UM, SERVICE AND PERSONAL CARE.
THIS IS GONNA BE YOUR HAIR, NAILS, KIND OF THE DAILY SERVICE.
DAILY, DAILY GROOMING AND PERSONAL CARE AND THINGS LIKE THAT.
FITNESS AND WELLNESS GOES WITHOUT SAYING GROCERY AND SPECIALTY FOODS.
THIS HAS BEEN A CATEGORY OF PARTICULAR INTEREST.
UH, THERE'S A NUMBER OF GROCERIES THAT ARE GROWING IN VIRGINIA RIGHT NOW.
THERE'S A NUMBER OF GROCERS THAT ARE ALSO GROWING BECAUSE THEY ARE MAKING DEFENSIVE MOVES, AND THAT IS SOMETHING THAT WE'RE ALSO WORKING TO CAPTURE.
THE GROCERY CATEGORY, AGAIN, IS VERY SMALL BECAUSE IT'S A VERY, VERY, VERY, VERY EXPENSIVE CATEGORY.
IT'S VERY TOUGH FOR RETAILERS TO MAKE THE NUMBERS WORK, BUT WE'RE TARGETING OUR SPECIFIC GROCERIES THAT ARE GROWING, THAT WE KNOW ARE GROWING AND HAVE GIVEN US THE FEEDBACK THAT THEY'RE GROWING.
UM, FUEL AND AUTOMOTIVE, I'LL TELL YOU THAT YOU GUYS HAVE A LOT OF FUEL RIGHT NOW.
YOU HAVE A LOT OF GOOD FUEL STATIONS, ESPECIALLY UP BY THE INTERSTATE TOO.
UM, THIS IS ONE WHERE IT'S A VERY NICHE CATEGORY OF FUEL SERVICE THAT WE ARE PARTICULARLY TARGETING.
UM, THE FEEDBACK HAS BEEN GOOD IN THIS CATEGORY.
THERE'S A NUMBER OF GROUPS THAT HAVE BEEN INTERESTED FOR A LONG TIME.
IT'S ABOUT FINDING THE RIGHT OPPORTUNITY, THE RIGHT SITE WITH THE RIGHT TRAFFIC.
THAT'S REALLY WHAT IT BOILS DOWN TO FOR THEM.
AND THEN FINALLY, IN THAT HOME HARDWARE AND FARM SUPPLY, AGAIN, THIS IS A CATEGORY WHERE I WOULD TELL YOU GUYS ARE ACTUALLY DOING REALLY, REALLY WELL FROM A FARM SUPPLY STANDPOINT.
YOU GOT A NUMBER OF GOOD FARM SUPPLIERS.
YOU GOT A NUMBER OF GOOD CATEGORIES IN THERE.
WHAT WE'RE PROBABLY AFTER REALLY IS, UM, A DIFFERENT CATEGORY OF HARDWARE AND A DIFFERENT CATEGORY OF HOME.
WHAT WE'RE TRYING TO DO IS MAYBE TARGET MORE OF A, UH, UH, LOCALLY OWNED HARDWARE GROUP THAT'S GONNA SELL A LITTLE BIT HIGHER AND HIGHER CATEGORY OF TOOLS AND SUPPLIES AND THINGS LIKE THAT.
SO NOW BREAKING DOWN THE ACTUAL STATUS OF THOSE RETAIL CONVERSATIONS THAT WE'RE HAVING, WE'VE GOT SIX GROUPS THAT ARE ACTIVELY INTERESTED.
THOSE ARE SIX GROUPS THAT WE BELIEVE ARE IN A STAGE RIGHT NOW WHERE THEY ARE BEYOND JUST CONSIDERING AND ANALYZING.
THEY'RE ACTUALLY RUNNING NUMBERS.
THEY ARE WORKING ON OPPORTUNITIES OR THEY ARE, UH, EXPLORING HOW THEY'RE GOING TO ENTER THE MARKET RIGHT NOW.
IE LOOKING FOR THINGS TO BUY, LOOKING FOR THINGS TO LEASE, WAITING FOR THE RIGHT OPPORTUNITY TO COME UP, WAITING FOR THE RIGHT THING TO HAPPEN WHERE THEY WILL ACTUALLY JUMP ON SOMETHING.
CONSIDERING AND ANALYZING WHAT I WOULD SAY THIS CATEGORY REALLY DOES AND WHY THIS IS IMPORTANT.
'CAUSE THIS, THESE ARE THE GUYS WHO ARE IN THAT RESEARCH PROCESS.
THEY'RE SAYING, MICHAEL, JIMMY MADISON, TELL ME WHY FIRM ROYAL.
TELL ME WHY WE SHOULD DO A FIRM ROYAL STORE VERSUS ONE A LITTLE FURTHER NORTH OR A LITTLE FURTHER SOUTH.
I WILL TELL YOU RETAILERS LIVE BY THE LIST.
WHAT I MEAN BY THAT IS THEY ARE RIGHT NOW BUILDING OUT, ESPECIALLY GROCERIES.
THEY'RE BUILDING OUT THEIR 2030 PLANS.
THEY'RE BUILDING OUT THEIR 2031 PLANS.
THEY'RE FIVE YEARS AHEAD AT ALL TIMES, RIGHT? ESPECIALLY IN THE GROCERY CATEGORY.
THE BIGGER THE RETAILER, THE LONGER HOW FAST PLAN IS GOING TO BE.
THEY'RE FACTORING IN ALL KINDS OF DIFFERENT CHANGES TO THE MARKET.
THEY'RE TRYING TO ANTICIPATE MARKET CHANGES.
THEY'RE TRYING TO DO A LOT OF THINGS IN THEIR METRICS.
UM, BUT THERE'S ALSO A 1, 2, 3 YEAR PLAN FOR THESE RETAILERS.
WHAT WE'RE TRYING TO DO IS RIGHT NOW, GET ON THAT LIST FOR THE FUTURE PLANNING.
NOW I'M GONNA TELL YOU, THIS IS A CATEGORY I'M GONNA TALK ABOUT AGAIN ON THE NEXT SLIDE, WHICH IS NEEDS A FRANCHISEE.
THIS IS ONE WHERE I WILL TELL YOU GUYS, WE ARE STRUGGLING RIGHT NOW WITH THE FRANCHISEE MARKET ACROSS THE COUNTRY.
IF YOU TALK TO, UM, THE ACTUAL FRANCHISORS, THE THE NAME BRANDS, THEY'RE STRUGGLING WITH THIS TOO, RIGHT? WHAT THEY'RE HAVING TO DO IS EXPAND EXISTING FRANCHISEES ACROSS THE COUNTRY.
THERE'S A LOT OF PEOPLE SITTING ON A LOT OF CASH RIGHT NOW, BUT THEY'RE NOT NECESSARILY WILLING TO SPEND IT ON THE NEW FRANCHISE.
SO THIS IS A CATEGORY THAT WE'RE SEEING.
IT'S AN ISSUE THAT WE'RE SEEING ACROSS THE COUNTRY.
IT'S NOT UNIQUE TO FRONT ROYAL.
IT'S AN ISSUE REALLY EVERYWHERE.
UM, OUTSIDE OF MAYBE YOUR CHICAGOS AND MANHATTANS AND, YOU KNOW, THOSE SUPER, SUPER, SUPER HIGHLY DENSE AREAS WHERE IT'S A LOT EASIER.
UM, NOT CURRENTLY A TARGET MARKET.
THESE ARE GROUPS THAT I WOULD SAY HAVE SAID, UH, NO.
FOR NOW, EVERYTHING TO ME IS A NO FOR NOW.
THERE ARE SOME THAT I WOULD SAY IT'S PROBABLY A NO FOR THE NEXT 15 YEARS, WHICH WE'RE PROBABLY A, A LONG, LONG, LONG, LONG WAYS OFF, BUT IT'S STILL A NO FOR NOW.
AT SOME POINT, WE WILL CONTINUE TO DRIP, DRIP, DRIP THAT THE MARKET TO THEM.
WE'LL CONTINUE TO PUT SITES IN FRONT OF THEM, THAT MAKES SENSE.
BUT WE OBVIOUSLY WANNA RESPECT THOSE RELATIONSHIPS, BONDS, RESPECT THE FEEDBACK THAT WE'RE GETTING.
UM, THERE ARE SOME RETAILERS THAT TRUTHFULLY JUST ARE NOT A FIT RIGHT NOW, AND THEY MIGHT NEVER BE, OR AT LEAST NEVER IN OUR LIFETIME.
UM, MY REMINDER ON THIS ONE IS IKEA
[00:25:01]
DOESN'T HAVE A STORE IN NASHVILLE, RIGHT? WHEN WE'RE LOOKING AT SOME BRANDS LIKE THAT, IT'S PROBABLY NOT HAPPENING ANYTIME SOON.SO WHAT WE HAVE TO DO IS TARGET THE ONES WHO WE DO THINK ARE FEASIBLE AND WE DO THINK WE MAKE A GOOD FIT, AND THEN AWAITING FURTHER FEEDBACK.
THIS REALLY IS THE ONES WHO'VE GIVEN US SOFT INTEREST, SOFT NEGATIVES.
THEY HAVEN'T GIVEN US ANYTHING DEFINITIVE TO REALLY SAY YES OR NO.
IT'S KIND OF JUST A FLOATING, YOU KNOW, BEING NICE, MAINTAINING RELATIONSHIPS.
THIS IS WHERE WE'RE AT, THIS IS, YOU KNOW, EH, MAYBE, MAYBE COME BACK TO ME IN A MONTH, COME BACK TO ME IN A YEAR.
SO ALL IN, I THINK THAT WE'RE IN A REALLY GOOD SPOT.
HAVING, BEING 12 MONTHS INTO A PARTNERSHIP AND HAVING THE NUMBERS THAT WE HAVE RIGHT NOW IN THAT TOP HALF WHERE WE'RE LOOKING AT FUTURE PLANS, CONSIDERING AND OR ANALYZING AND ACTIVELY ADDRESSED, WE'RE IN A REALLY GOOD SPOT RIGHT NOW.
NOW, IT, AND FEEL FREE TO, BY THE WAY, I SHOULD HAVE SAID THIS WHEN STARTED, BUT FEEL FREE TO CUT ME OFF AT ANY TIME GUYS, IF Y'ALL HAVE ANY QUESTIONS, I WANT IT TO BE A DIALOGUE.
I PROBABLY SHOULD HAVE STARTED WITH THAT, SO I APOLOGIZE.
WE CAN, I GUESS NOW, NOW I'M THINKING ABOUT WE CAN JUST WAIT UNTIL THE END.
BUT
THIS IS KIND OF THE, THE CRUX OF ALL THE FEEDBACK.
THIS IS WHAT OUR MARKET KNOWLEDGE AND OUR MARKET INSIGHT THAT WE'VE GOTTEN FROM THE RETAILERS, FROM THEIR BROKERS AND FROM TENANT REPS, DEVELOPERS, ET CETERA.
THIS IS WHAT THEY'RE TELLING US.
WHAT'S WORKING, YOU GUYS, YOU GUYS HAVE TO CAPTURE THE TOURISM TRAFFIC.
TOURISM IS CRITICAL HERE, RIGHT? WHEN WE LOOK AT YOUR DAILY TRAFFIC, THAT 70% RULE IS INCREDIBLY IMPORTANT, BUT IT DOESN'T TELL THE FULL STORY IN FARM OIL, HAVING THE ABILITY TO CAPTURE TOURISM DOLLARS FROM NORTHERN VIRGINIA, DC, MARYLAND, I MEAN, EVEN GOING OUT TO WEST VIRGINIA, WE'VE GOTTA BE ABLE TO CAPTURE THAT.
WE'VE GOTTA BE ABLE TO TRACK THAT AND CONTINUE TO ANALYZE IT.
THAT TOURISM TRAFFIC THOUGH, IS NOT JUST CRITICAL FOR HOTELS.
IT REALLY IS IMPORTANT FOR THE RESTAURANTS.
THE RESTAURANTS WILL BE FAR MORE SUCCESSFUL IF WE HAVE MORE HIGHER END QUALITY HOTELS THAT ARE DOING WELL, THAT ARE ATTRACTING THOSE DOLLARS FROM THOSE OTHER MARKETS.
UM, I WOULD TELL YOU WE'VE GOTTEN SIGNIFICANT INTEREST IN REDEVELOPMENT.
AND WHAT I WOULD SAY THE REASON THAT THIS IS IMPORTANT IS BECAUSE WHAT A LOT OF DEVELOPERS ARE SAYING, A LOT OF RETAILERS ARE SAYING IS, HEY, IT MIGHT NOT BE A MARKET WHERE WE'VE GOT ENOUGH GREEN SPACE.
AND IT'S ACTUALLY ONE OF MY NOTES DOWN AT THE BOTTOM THERE IS THAT WE MIGHT NOT HAVE A LOT OF PREMIUM PARCELS OR PREMIUM PAD SITES READY TO GO.
MEANING THAT THERE'S NOT A LOT OF ONE ACRE PADS PERFECTLY CARVED OUT WITH PERFECT ACCESS.
ALL THE UTILITIES RUN EVERYTHING PLUMBS, STUBBED AND READY TO GET.
WHAT WE DO HAVE IS WE'VE GOT A SUPPLY OF WHAT I WOULD SAY ARE OPPORTUNITIES FOR A HIGHER AND BETTER USE.
THAT'S SOMETHING WHERE RETAILERS ARE PAYING CLOSE ATTENTION AND IT'S SOMETHING TRUTHFULLY RIGHT NOW THAT HOPEFULLY CAN BE A WAY FOR THEM TO HELP COST CUT.
IF IT'S ALREADY GOT UTILITIES ALREADY GOT EVERYTHING THAT THEY WOULD NEED, THAT'S GREAT.
IF IT'S SECOND GEN SPACE WHERE WE CAN TAKE THAT SPACE AND JUST CONVERT IT EVEN BETTER.
NOW, THERE'S A LOT OF NOTES HERE, BUT I'M GONNA JUMP TO KIND OF THE WHAT'S NOT WORKING RIGHT NOW.
WHAT WE'RE HEARING FROM THE MARKET, KIND OF THE NEGATIVES, RIGHT? THE THINGS THAT ARE, AGAIN, IT'S IMPORTANT TO UNDERSTAND WHERE WE'RE AT ON BOTH SIDES, AND I THINK THIS IS SOMETHING I ALWAYS WANT TO GIVE THE FEEDBACK.
UM, LIZZIE HAS THE LUXURY OF GETTING A LOT OF THESE REPORTS FROM ME THAT IT GIVE ALL OF THESE NOTES VERY, VERY DETAILED NOTES ON WHAT THE RETAILERS ARE SAYING.
SO I'M KIND OF SUMMARIZING A LOT OF THAT RIGHT NOW.
BUT THE NATIONAL FRANCHISEE SHORTAGE RIGHT NOW TO ME IS YOUR NUMBER ONE ISSUE MORE THAN A LOT OF THE OTHER FACTORS.
I WOULD TELL YOU THAT THEY ALL PLAY INTO IT THOUGH.
AND THE REASON I SAY THAT IS THERE'S A LOT OF REALLY STRONG FRANCHISEE, FRANCHISEE GROUPS IN NORTHERN VIRGINIA AND DC AND MARYLAND.
A LOT OF 'EM, LIKE REALLY GOOD GROUPS.
ONE OF THE ISSUES THAT WE'VE, THAT WE'RE SEEING THOUGH, IS ALL OF THESE OTHER PIECES PLAY, EXCUSE ME, PLAY INTO THAT THOUGH.
IF WE DON'T HAVE THE PAD SITES AND IT'S NOT AN EASY DEAL, A FRANCHISEE MIGHT NOT BE AS WILLING TO JUMP ON BOARD WITH A NEW GROUP BECAUSE THEY WANT AN EASY DEAL.
THEY WANT THOSE DEALS WHERE THEY'RE SIGNING UP, PAYING THEIR FRANCHISE FEE AND MAKING IT OPEN QUICKLY.
IF THOSE OPPORTUNITIES DON'T EXIST, IT MAKES IT A LITTLE BIT HARDER TO ATTRACT A FRANCHISEE TO THE MARKET.
AND THAT'S NOT AN ISSUE FOR, FOR ROYAL, THAT'S AN ISSUE FOR A RETAILER AND THEIR FRANCHISE SALES TEAM.
TRUTHFULLY, SOMETHING THAT THEY'VE GOTTA GET OVER AS WELL.
THIS IS SOMETHING THAT PROBABLY DOESN'T COME AS A HUGE SURPRISE.
THIS IS THE MAIN REASON THAT WE HAVE TO USE CTAS, AND THAT'S THE MAIN REASON THAT THE CTA METHODOLOGY WORKS.
THE MAIN REASON THAT THIS IS SO IMPORTANT FOR RETAILERS IS THAT WHEN WE DON'T HAVE CRITICAL MASS AND CRITICAL DENSITY HERE, WHAT WE'VE GOTTA FOCUS ON IS THE BROADER MARKET THAT EXISTS AND THAT DOES EXIST HERE.
UM, THE LAST THING I'M GONNA SAY, YOU GUYS HAVE SOME, UH, SOME HIGHER ASKING PRICES THAN WHAT I THINK A LOT OF RETAILERS WOULD BE MAYBE USED TO.
WE'VE SEEN SOME OF THE PRICING BE, UM, A LITTLE BIT HIGHER THAN WE WOULD EXPECT, RIGHT? THAT'S SOMETHING THAT'S MORE MARKET
[00:30:01]
BASED, AND THAT IS SOMETHING THAT I WOULD SAY OVER TIME.JIMMY AND I, OBVIOUSLY, PART OF OUR JOB IS CERTAINLY TO ATTRACT RETAILERS TO GET THAT INTEREST.
IT'S ALSO TO SHARE THE FEEDBACK THAT WE'RE GETTING FROM THOSE RETAILERS WITH PROPERTY OWNERS, WITH OWNERS OF THE REAL ESTATE, SO THAT THEY ARE GETTING AN HONEST TAKE FROM THE MARKET THAT MAYBE THEY WOULDN'T GET OTHERWISE.
WE'RE ABLE TO HAVE THOSE KIND OF HARD CONVERSATIONS WITH PEOPLE THAT WE KNOW BECAUSE WE HAVE A GOOD RELATIONSHIP WITH.
THEY'RE ABLE TO GIVE US QUICK FEEDBACK.
SOMETIMES IT'S NOT GREAT FEEDBACK, BUT WE'RE ABLE TO SHARE THAT INFO.
UM, AND THEN LAST BUT NOT LEAST, YOU GUYS HAVE A LOT OF REALLY, REALLY, REALLY STRONG COMPETITIVE MARKETS AROUND YOU GUYS.
I'LL TELL YOU IN TWO INSTANCES, UH, THAT I KNOW OF, PARTICULARLY FOR A GROCER, THEY'RE LOOKING AT THOSE OTHER MARKETS FIRST.
YOU GUYS ARE THIRD ON THAT LIST.
WHAT THEY WANNA DO IS THEY WANNA SEE HOW THEIR STORES PERFORMED THERE BEFORE THEY ENTER FRONT ROYAL.
SO WHAT WE HAVE TO DO IS OBVIOUSLY GET IN FRONT OF THEM EARLIER.
I WOULD TELL YOU THAT THOSE CONVERSATIONS WERE PROBABLY BEING HAD FIVE TO 10 YEARS AGO FOR THEM TO ENTER THESE OTHER MARKETS.
UM, SO IT DOESN'T MEAN THAT WE MISSED OUT, IT DOESN'T MEAN THAT WE MISSED AN OPPORTUNITY, UM, NOW OR TO WITH TODAY'S CLIMATE AND TODAY'S WORLD AND TODAY'S TEAM.
UM, TODAY'S COUNCIL, THAT'S NOT WHAT HAPPENED.
WHAT HAPPENED IS, 10 YEARS AGO, THEY WERE ALREADY SAYING, HEY, WE'RE THINKING ABOUT ENTERING A MARKET.
WHERE SHOULD WE GO? THEY LANDED ON OTHER MARKETS.
WE'RE JUST NOW THIRD ON THAT LIST.
THEY'RE GONNA SEE HOW THOSE OTHER STORES DO AND HOPEFULLY WE LAND AT SOME POINT WITH ONE OF THESE NEW STORES.
SO AGAIN, THERE'S A LOT THAT'S WORKING REALLY, REALLY WELL.
I THINK FRONT ROYALS IN A REALLY GOOD SPOT.
I THINK THAT THE TRACTION THAT WE'RE GETTING IS REALLY GOOD.
I THINK THAT WE'VE GOTTEN A LOT OF GOOD FEEDBACK.
WE'RE CONTINUING TO GET GOOD FEEDBACK.
WE'VE HAD A LOT OF REALLY GOOD TRADE SHOWS LATELY WITH GOOD REPRESENTATION.
UM, THERE'S A SHOW IN DC COMING UP, I THINK THEY'VE MOVED IT TO MARCH, UM, THAT WE'LL BE AT AS WELL.
SO THERE'S A LOT OF GOOD TRACTION, A LOT OF GOOD FEEDBACK.
WE ARE HAPPY WITH WHERE THINGS ARE AT, BUT I CERTAINLY WANT TO OPEN IT UP TO YOU GUYS.
AND AGAIN, THANK YOU FOR THE OPPORTUNITY.
I SHOULD HAVE STARTED OFF BY ONLY YOU, PLEASE CUT ME OFF AT ANY TIME.
BUT, UM, YEAH, HAPPY TO TAKE ANY QUESTIONS YOU GUYS HAVE.
ARE THERE ANY SPECIFIC SITES, UH, ESPECIALLY TOWARDS THE SOUTHERN END, CLOSE TO, TO THE ENTRANCE, UH, SKYLINE DRIVE THAT HAVE HIGH INTEREST FROM HOSPITALITY? INTERESTINGLY, I WOULD SAY THAT MOST OF THE HOSPITALITY GROUPS ARE ACTUALLY FOCUSED ON DOWNTOWN.
THEY WANT TO ACTUALLY HAVE ACCESS TO DOWNTOWN.
THEY WANT, UM, GOOD SYNERGY WITH THE MOM AND POP RESTAURANTS.
THEY THINK THAT THAT'S THE VALUE.
WHAT THEY'RE, WHAT THEY'VE KIND OF BEEN, SOME OF THE FEEDBACK FOR US HAS BEEN, YOU KNOW, OBVIOUSLY THE REASON THAT THEY WOULD COME HERE IS BECAUSE OF SKYLINE.
IT'S BECAUSE OF THE ACCESS INTO THE NATIONAL PARK.
BUT THEY ARE, THEY NEED, THEY NEED THAT DOWNTOWN.
THEY NEED THE MOM AND POP RESTAURANTS.
THEY NEED THAT TO HELP DRAW PEOPLE IN AND TRUTHFULLY TO HELP DIFFERENT THINGS THAT THEY ALL WANT.
UM, I GUESS THERE'S AN INSIGHT, MAYBE KIND OF LIKE AN ON THE RECORD INSIGHT OR SOMETHING LIKE THAT, BUT ONE OF THE THINGS I'VE ENCOUNTERED, A A LOT OF FOLKS ARE INTERESTED IN ANOTHER GROCERY STORE AND IT WOULD SEEM TO BE POPULATION DRIVEN.
IS THERE AN ENCOURAGEMENT THAT YOU ALL OFFER TO OUR COUNCIL TO, TO BE OPEN-MINDED, TO, YOU KNOW, GROWTH IN THE AREA AND, AND SUBDIVISIONS COMING IN THAT THAT'S WHAT A GROCER'S GOING TO NEED OR, OR, OR AN ADDITIONAL G IN OR ACCOUNTS GOING TO NEED TO SUSTAIN ITSELF? SURE.
I, I HAVE A, UH, SLOGAN THAT I MIGHT AS WELL GET TATTOOED ON MY ARM AT THIS POINT, WHICH IS ROOFTOPS BREEDS RETAIL.
THE MORE ROOFTOPS WE HAVE, THE MORE LIKELIHOOD WE HAVE TO LAND LARGER RETAILERS.
WHAT THEY CARE ABOUT MORE THAN ANYTHING IS THE VELOCITY OF THAT HOUSING, THOUGH.
THEY WANT TO KNOW THAT IT'S COMING NOW.
THEY WANT TO KNOW THAT IT'S COMING NEXT YEAR, THE YEAR AFTER THAT FIVE YEARS TO COME.
THEY WANT TO KNOW THAT THERE'S A LONG-TERM RUNWAY FOR THAT GROWTH AND THAT IT'S GOING TO CONTINUE.
YOU GUYS ARE PERFECTLY POSITIONED FOR THAT LONG-TERM GROWTH.
I'M SURE THAT THERE ARE A NUMBER OF, UH, OF, YOU KNOW, I'M A RETAIL GUY, BUT I'M SURE THAT THERE'S A LOT OF RESIDENTIAL DEVELOPERS THAT ARE SITTING HERE LOOKING AT OPPORTUNITIES.
YOU GUYS HAVE ALL OF THESE SITES AND YOU'VE GOT ALL OF THIS OPPORTUNITY TO GET INTO THE LARGER, THE LARGER AREAS IN NORTHERN VIRGINIA.
I SEE IT, THE RETAILERS I THINK SEE IT AS WELL.
HOWEVER, IF WE HAVE THOSE HEADLINES, YOU KNOW, 300 NEW HOMES, NEW APARTMENTS, NEW, WHATEVER IT MIGHT BE, I DON'T WANT TO GET INTO, UH, INTO THE, THE POLITICS OF IT ALL TOO MUCH.
BUT I WOULD SAY THAT WITH HOUSING COMES RETAIL, I CAN POINT TO A NUMBER OF, IN INSTANCES, I CAN'T SHARE TOO MUCH DETAIL, BUT I CAN POINT TO A NUMBER OF INSTANCES WHERE THAT HOUSING GROWTH HAS DIRECTLY BEEN THE CATALYST FOR NEW GROCERS, NEW RETAILERS, ET CETERA.
WE HAVE THE OPPORTUNITY TO SHARE THOSE KIND OF PIECES OF INTEL AND THOSE PIECES OF RESEARCH AND DATA.
WELL, AND I'LL ADD ONE THING TO THAT THEN.
UM, I RECENTLY WENT, WELL, I WON'T, I WON'T SAY THE TOWN, BUT I WENT INTO A TOWN THAT'S EXPERIENCED 10 TIMES AS GROWTH AS WE HAVE.
AND THEIR ORIGINAL DOWNTOWN STILL EXIST.
[00:35:01]
IT'S STILL HISTORICAL, IT'S STILL CHARMING, IT'S STILL WONDERFUL.IN YOUR ALL'S EXPERIENCE, WHEN YOU SEE THIS GROWTH ON THE OUTER EDGES MM-HMM
HAVE, HAVE YOU NOTICED A CHANGE WITHIN THE TOWN ITSELF DOWNTOWN, EXCEPT THE FACT THAT THE STORES ARE FULL, OR, I WOULD TELL YOU IT'S ONLY POSITIVE.
THE CHANGES DOWNTOWN ARE POSITIVE.
AND THE REASON I SAY THAT IS BECAUSE WHEN WE LOOK AT OTHER NEIGHBORING MARKETS TO YOU GUYS IN NORTHERN VIRGINIA, I CAN POINT TO THREE OFF THE TOP OF MY HEAD THAT WOULD, THAT WOULD HAVE THAT UNIQUE, REALLY NICE DOWNTOWN WHERE THEY'VE GOT TONS OF MOM AND POP STORES.
THEY'VE GOT RESTAURANTS, THEY'VE GOT REALLY A NICE, YOU KNOW, SATURDAY DRIVE OUT TO THE COUNTRY, GO SEE SOME HORSES IN SOME FIELDS AND GO TO A WINERY, WHATEVER.
THEY ALSO HAVE A COSTCO DOWN THE STREET, RIGHT? THEY'RE NOT LOSING DOLLARS TO IN DOWNTOWN BECAUSE OF THAT RETAIL.
WHAT'S HAPPENED IS PEOPLE ARE DOING IT ALL TOGETHER.
THEY'RE SPENDING MONEY AT THEIR MOM AND POPS.
THEY'RE SPENDING MONEY ON THE LOCAL FOOD BECAUSE AGAIN, THAT'S UNIQUE.
I THINK IN THE BROADER DMV, I WOULD TELL YOU THAT I THINK THAT IT'S EVEN MORE IMPORTANT TO PEOPLE TO SPEND MONEY AT THE LOCAL STORES.
AT THE SAME TIME, IT'S ALSO IMPORTANT THAT YOU HAVE THOSE FAMILIAR PLACES, THAT YOU HAVE AN OPPORTUNITY FOR RESIDENTS, FOR PEOPLE THAT ARE LOOKING TO, MAYBE THEY'RE COMING OUT HERE AND THEY'RE LOOKING AT BUYING A HOUSE.
MAYBE THEY'RE LOOKING AT BUILDING A HOUSE.
THEY WANNA HAVE SOMETHING THAT'S FAMILIAR WITH THEM AS WELL.
IT ALL KIND OF GOES TOGETHER AND COINCIDES REALLY, REALLY WELL.
AND I THINK THAT, AGAIN, WHAT I'VE SEEN IS THE PLACES THAT ARE DOING REALLY WELL ON THE OUTSIDE, THEY'RE DOING JUST AS WELL DOWNTOWN.
THEY'RE NOW, I WILL ALSO SAY NATIONAL RETAILERS ARE TYPICALLY NOT GOING TO TAKE YOUR DOWNTOWN SPACES.
UM, NOR DO I NECESSARILY WANT TO PUT A DRIVE THROUGH IN THE MIDDLE OF SOMEBODY'S HISTORIC DOWNTOWN.
I, I DON'T THINK THAT THAT'S REALLY GOOD FOR ANYBODY PERSONALLY.
I THINK FROM A PLACE MAKING STANDPOINT, IT'S JUST NOT GOOD.
I THINK FROM A TOURISM STANDPOINT, DOESN'T HELP YOU.
PEOPLE WANT THOSE PROTECTED DOWNTOWNS.
THEY REALLY VALUE THAT, ESPECIALLY UP HERE.
UM, BUT IF WE CAN BE SMART ABOUT WHERE IT GOES ON THE OUTSIDE, IT ALL HELPS.
SO YOU TALKED A LITTLE BIT ABOUT AT THIS, THIS IS THE POINT WHERE WE MIGHT PIVOT AND SURE.
REFOCUS AND MENTIONED HOSPITALITY AND THE HOTEL GROUPS.
UM, IT SOUNDS LIKE MAYBE THAT'S WHAT YOUR, THE PIVOT WOULD BE.
I THINK WE'VE GOTTA GO ALL IN.
I, I MEAN, I THINK I, I, WELL, I SHOULDN'T SAY ALL IN.
WE'RE GONNA CONTINUE TO RECRUIT THOSE RESTAURANTS.
WE'RE GONNA CONTINUE TO RECRUIT THE FOOD SERVICE, THE GROCERS.
THERE'S A COUPLE OF SPECIFIC GROCERS THAT I THINK ARE ABSOLUTELY MISSING AND WOULD MAKE SENSE JUST, UM, ANECDOTALLY, BUT ALSO PROFESSIONALLY.
I CAN TELL YOU JUST, IT'S SURPRISING THAT THEY'RE NOT HERE.
WE'RE GONNA CONTINUE TO CHASE ALL OF THAT.
WE'RE GONNA CONTINUE TO CHASE EVERYBODY.
WE'VE ALREADY TALKED TO EVERYBODY WE CONTINUE TO TALK TO.
I'M NOT CHANGING OUR PROSPECT LIST, BUT I DO THINK THAT HOSPITALITY IS ONE RIGHT NOW WHERE WE HAVE AN OPPORTUNITY TO REALLY CAPTURE SOME OF THOSE DOLLARS THAT ARE BEING DUMPED INTO THAT INDUSTRY AND INTO THAT MARKET RIGHT NOW.
THE OTHER SIDE OF THAT IS THE GOVERNMENT SHUTDOWN DOWN, I CAN JUST TELL YOU, WAS NOT GREAT FOR NATIONAL PARKS.
THERE WAS A SPECIFIC PIECE OF FEEDBACK THAT WE GOT EVEN, UM, FROM A HOTEL GROUP THAT SAID, WELL, WE'RE KIND OF WAITING TO SEE WHERE EVERYBODY'S AT WHEN WE GET THROUGH THIS.
THOSE KIND OF CONTINUING POLITICAL PIECES ARE NOT ALWAYS GONNA BE HELPFUL.
BUT IF WE CAN CAPTURE THOSE TRAFFIC COUNTS WHEN WE'RE IN A GOOD POSITION, WHICH WE ARE RIGHT NOW, ESPECIALLY POST FALL, ESPECIALLY COMING OUT OF SOME OF THAT, I HOPE THAT THE DATA IS REALLY REFLECTING THE INCREASED VISIT, THE INCREASED TRAFFIC TO SKYLINE.
I KNOW MY PARENTS ACTUALLY DROVE SKYLINE ONCE THIS FALL,
SO, UM, FIRST TIME I'VE MENTIONED TO MY PARENTS AND THEY, UH, IN THE EDA MEETING, BUT I TELL YOU, THEY, UH, THEY LOOK
SO THE, ALL OF THAT PLAYS INTO IT FROM A, FROM A PIVOT STANDPOINT.
I DON'T NECESSARILY THINK IT'S A TOTAL PIVOT, BUT I THINK THAT IT'S, WE'VE GOTTA FOCUS, WE GOTTA REALLY PUSH THAT EFFORT ONTO THE HOSPITALITY ON THE HOTELS.
UM, WE HAD SOME GREAT FEEDBACK ON A VERY UNIQUE CONCEPT THAT IS A, UH, I WOULD CONSIDER IT CLOSE TO GLAMPING.
UM, IF Y'ALL ARE FAMILIAR WITH THE GLAMPING TERMINOLOGY, IT'S CLOSE TO THAT.
UM, BUT OPERATED BY A MAJOR NATIONAL INTERNATIONAL CHAIN, UM, WE GOT SOME GOOD FEEDBACK FROM THEM.
THOSE ARE THE KIND OF GROUPS THAT I THINK WOULD REALLY HELP TO BE A CATALYST TO SOME OF THESE OTHER PIECES AND SOME OF THE OTHER GOALS THAT WE HAVE IN MIND.
SO AGAIN, I THINK THAT AS WE WRAP UP YEAR ONE HERE, I THINK IT'S A FOCUS ON HOSPITALITY, FOCUS ON THOSE OPPORTUNITIES, UM, YOU KNOW, HOTEL STUDIES, THINGS LIKE THAT.
THOSE ARE THE CONVERSATIONS THAT WE'RE KIND OF HAVING RIGHT NOW.
SO TWO QUICK QUESTIONS, JUST KIND OF ABOUT THE, THE KPIS AS THEY STAND.
SO FOR, UM, WOULD YOU BE ABLE TO DISCLOSE WITH IAN KIND OF THAT I, WE COULD GO THROUGH ALL OF 'EM I GUESS, BUT ESPECIALLY
[00:40:01]
THE ACTIVE INTERESTS.COULD YOU SPEAK TO WHAT CATEGORIES THAT YOU CAME UP WITH ARE IN THE ACTIVE INTEREST? AND THEN ALSO KIND OF PIGGYBACKING OFF THAT, WHAT IS THE SPACE BETWEEN ACTIVE INTEREST AND LIKE KIND OF PUBLIC ANNOUNCEMENT? ARE THERE OTHER, IS THERE, IS THERE ANOTHER THING THERE THAT WOULD BE LIKE, WELL, THERE EVEN MORE ACTIVE, LIKE YEAH, CAN YOU TALK ABOUT, SO WHAT I WOULD SAY AND WHAT I'VE DONE IN THE PAST IS BEYOND ACTIVELY INTERESTED, IT IS WORKING A DEAL.
THAT'S WHAT WE ULTIMATELY WANT THEM TO GET TO.
THAT'S WHERE WE HAVE FOUND OUT THROUGH OUR SOURCES.
THEY'VE, MAYBE THEY'VE TOLD US, OR WE'VE HEARD THROUGH THE RUMOR MILL, HEY, AND I'LL JUST TELL YOU, RETAILERS ARE SO CLOSE TO THE VEST ON THINGS WE SOMETIMES ARE NOT THE LAST TO KNOW, BUT WE'RE, WE'RE DOWN THE LIST.
EVERYBODY ELSE SEEMS TO KNOW, AND THEN ALL OF A SUDDEN WE FIND OUT ABOUT A RETAILER THAT IS PUT IN AN APPLICATION FOR A PERMIT.
UM, WHAT I WOULD TELL YOU IS RIGHT NOW, WE WANT TO MOVE THEM UP THAT LIST.
WE WANNA CREATE THAT NEXT CATEGORY SO THAT WE CAN ULTIMATELY START MOVING THOSE SIX INTO THAT CATEGORY.
WHAT I WOULD TELL YOU RIGHT NOW IS THE MAJORITY OF THOSE SIX HOSPITALITY, THAT'S WHO'S INTERESTED.
THAT'S WHO'S LOOKING FOR THE RIGHT OPPORTUNITY, THE RIGHT SITE.
AGAIN, I THINK THAT SPECIFICALLY THIS IS A CATEGORY WHERE WE'RE LOOKING AT HIGHEST INVEST OPPORTUNITIES.
WE'RE LOOKING AT EXISTING INVENTORY TO SEE WHERE THAT COULD BE APPROVED OR EXISTING OPPORTUNITY, EXISTING SITES THAT COULD BE, UM, ACQUIRED FOR A LARGER PRODUCT.
I SPECIFICALLY, AND I, I THINK THIS IS IMPORTANT TO SAY TOO, I WANT BRANDS THAT ARE GONNA HAVE FOOD, UH, HAVE A BAR, HAVE A RESTAURANT, A CAFE.
IT DOESN'T HAVE TO BE FANCY, IT DOESN'T HAVE TO BE HUGE, BUT I DO THINK IT'S IMPORTANT THAT YOU HAVE THAT AS A SMALL PIECE.
YOU KNOW, JIMMY AND I DO A LOT OF TRAVELING.
UM, I WOULD TELL YOU, WE EAT, WE EAT HOTEL FOOD A LOT.
I ATE IT THIS MORNING, RIGHT? WE'RE USED TO IT.
IT'S KIND OF ONE OF THE THINGS THAT ACTUALLY HELPS ME SELECT A HOTEL IS DO THEY HAVE, DO THEY HAVE THAT LITTLE CAFE? DO THEY HAVE A LITTLE BISTRO DOWNSTAIRS? I THINK THAT AS LONG AS WE HAVE THOSE KIND OF LITTLE PIECES TO, TO IT, I THINK WE'RE IN A REALLY GOOD SPOT.
WHAT I HAVE BEEN VERY SPECIFIC ABOUT WITH OUR RETAIL OR WITH OUR HOTEL RECRUITMENT IS SAYING, WE DON'T WANT TO COME IN AND CREATE MORE, UM, ONE, TWO, AND THREE STAR HOTELS.
WHAT WE WANT ARE THOSE THREE AND FOURS, RIGHT? WE KNOW THAT OUR CHANCES OF GETTING A FIVE STAR ARE, ARE VERY, VERY TOUGH.
IT'S INCREDIBLY COMPETITIVE UP HERE.
THOSE DESTINATION HOTELS, YOU KNOW, THERE'S A COUPLE, UM, YOU KNOW, GREENBRIAR A GOOD EXAMPLE OF ONE THE HOMESTEAD, ANOTHER GOOD EXAMPLE OF ONE.
THOSE ARE GOOD EXAMPLES OF THOSE REALLY, WHAT WAS IT? UM, OF THE, THE LITTLE END OF WASHINGTON.
THOSE ARE, YOU KNOW, THOSE ARE REALLY, REALLY, REALLY TOUGH TO LAND.
AND THOSE HAPPENED ORGANICALLY, UM, WHERE THEY HAPPENED 300 YEARS AGO.
SO WHAT WE HAVE TO DO IS WE HAVE TO CAPTURE THOSE HOTEL DOLLARS THAT ARE A LITTLE BIT MORE ACCESSIBLE.
AGAIN, THERE'S SIX THAT ARE ON THERE.
I'LL TELL YOU, WE'VE GOTTEN GOOD FEEDBACK ALSO FROM, UM, FOOD IN THE FOOD CATEGORY.
IT'S GONNA BE MUCH MORE OF A QUICK SERVICE, UH, LIMITED SERVICE CATEGORY, BUT HOTEL MAKES UP THE MAJORITY OF THAT SIX.
WE'VE GOTTEN REALLY, REALLY, REALLY GOOD FEEDBACK FROM HOTEL GROUPS.
THAT IS ONE CATEGORY WHERE WE'RE JUST NOT HERE IN THE OAK TRUTHFULLY.
UM, SO THE MATH IS WHAT THE MAP IS THERE.
JIMMY, I'LL JUST ADD TOO, I MEAN, IN TERMS OF, OF INTEREST, WHETHER IT'S IN THE, YOU KNOW, ACTIVELY INTERESTED OR THE ANALYZING THE MARKET, YOU KNOW, DIFFERENT STAGES OF INTEREST, BUT WE ALSO HAVE SERVICE PROVIDERS.
AGAIN, SOME OF THESE RESTAURANT GROUPS ARE MORE LIKE INLINE STYLE RESTAURANTS, LIKE QUICK IN AND OUT, MAYBE A PICKUP ORDER.
UH, AND THEN WE HAVE YOUR TRADITIONAL QSRS WHO ARE STANDALONE.
UM, AND, AND AGAIN, REALLY IN TERMS OF LIKE OUR CHALLENGES ON THE REAL ESTATE SIDE, WE'RE VERY EXCITED ABOUT THE FEEDBACK THAT, THAT WE'RE RECEIVING.
AND WE'VE GOT SOME GOOD OPPORTUNITIES THAT WE'RE TRACKING IN TERMS OF NEW INVENTORY, WHETHER IT'S INLINE SPACE OR POTENTIAL STANDALONE SITES.
UM, CERTAINLY, UH, LARGE DEVELOPMENT LIKE THE NEW HOTEL COULD, COULD REALLY DRIVE THAT INTEREST EVEN MORE.
UM, BUT, YOU KNOW, ULTIMATELY, AGAIN, WHETHER IT'S SOME OF THE GROUPS THAT ARE INTERESTED AND THEIR USE IS RESTRICTED WITH, WITH AN EXISTING VACANCY WITHIN THE MARKET BECAUSE IT'S A SIMILAR OR SAME USES IN EXISTING TENANT.
BUT WHERE WE STAND TODAY, WE'RE VERY EXCITED ABOUT THE FEEDBACK THAT WE HAVE.
AND AGAIN, WE'RE WE, WE SEE OPPORTUNITIES UNFOLDING AND WE'RE KIND OF RIGHT WHERE WE EXPECT TO BE, HONESTLY IN YEAR TWO.
UH, I HAD, UH, YOU HAD MENTIONED IN ONE OF THE SLIDES, UM, THAT, UH, THERE'S GAPS IN THE MARKET.
CAN YOU IDENTIFY THOSE GAPS IN THE MARKET? YEAH, NO, ABSOLUTELY.
FOOD IS ONE OF YOUR BIGGEST GAPS.
GROCERY, AS I RECALL, I DON'T HAVE THE, I DON'T HAVE MY DATA SHEET IN FRONT OF ME.
I THINK THERE'S A SMALLER GAP IN GROCERY THAN I WAS EXPECTING, BUT STILL ENOUGH GAP IN THE MARKET FROM A SPEND
[00:45:01]
STANDPOINT THAT YOU'D ABSOLUTELY STILL BE ABLE TO RECRUIT A GROCERY.THERE'S STILL ROOM IN THE MARKET FOR IT.
UM, IT'S NOT A SURPLUS, SHALL WE SAY.
UM, HOTEL DOLLARS ARE REALLY HARD TO TRACK.
ODDLY ENOUGH, THAT'S THE ONE, AGAIN, WE'VE GOTTEN GREAT INTEREST.
I DON'T HAVE A SPECIFIC NUMBER ON THAT.
ALL I'VE GOT IS ANECDOTAL EVIDENCE TO SAY THERE'S CLEARLY AN ISSUE, UM, IN A HOTEL MARKET WHEN ALL OF YOUR HOTELS ARE SAYING, HEY, THIS IS A GREAT PLACE TO BE.
THAT MEANS TO ME THAT THERE'S OBVIOUSLY, THERE'S A, THERE'S A DELTA, RIGHT? UM, THE, UH, I'M SORRY.
SO IT'S GOING TO BE QUICK SERVICE HAS A GAP.
THE FULL SERVICE HAS A PRETTY, PRETTY SUBSTANTIAL GAP.
BARS AND RESTAURANTS ARE GONNA PLAY INTO THAT AS WELL.
I BELIEVE THAT THERE WAS A RELATIVELY LARGE GAP IN THE BAR SECTION AS WELL.
SO WHAT I WOULD SAY, THOUGH, RATHER THAN ME TRYING TO RECITE ALL MY NUMBERS AND REMEMBER IT OFF THE TOP OF MY HEAD, I, I'M HAPPY TO SHARE A FULL GAP ANALYSIS WITH YOU GUYS AND YOU CAN ACTUALLY SEE IT'S NOT, THERE'S NOTHING IN THERE THAT'S CONFIDENTIAL.
I CAN ABSOLUTELY SHARE THAT WITH, WITH THE GROUP.
UM, I FEEL LIKE WHEN YOU DID YOUR ANALYSIS AT THE START OF THINGS MM-HMM
THAT, THAT, UM, I'M GONNA USE THE INCORRECT TERM.
IT WAS LIKE CLOTHING, RETAIL, SOFT GOODS, SOFT.
SOMETHING SOFT GOOD, BUT SOFT RETAIL FELT WEIRD.
UM, YEAH, SOFT GOODS WAS A, WAS SOMEWHAT OF A GAP FOR US TOO.
WE DON'T HAVE A LOT OF CLOTHING, RETAIL, THAT KIND OF THING.
EVEN LIKE SPORTING GOODS AND THAT KIND OF STUFF.
WELL, I KNOW THAT YOU AND I KNOW THAT, YOU KNOW, JUST KIND OF FROM, FROM THE RESEARCH AND ALL THE PHASE THAT WE'RE, YOU KNOW, WE'VE BEEN AT, UM, I KNOW THAT YOU HAD EVEN SOME SPORTING GOODS STORES THAT, THAT THAT EVEN CLOSED A COUPLE YEARS AGO UP, BUT NO, IT'S, YEAH.
WAS TOWN IT WAS, NO, IT WAS NORTH.
IT WAS, IT WAS OUTSIDE OF TOWN LIMITS.
BY THE TARGET, WALMART AND THAT.
WHAT OFF? SO DO YOU, DO YOU HAVE ANY POTENTIAL AREAS THAT YOU, YOU KNOW, OF INTEREST THAT PEOPLE HAVE ACTUALLY SAID IN THAT, IN WHAT YOU'RE LOOKING TO PUSH IN THE HOSPITALITY? HAS ANYBODY SAID, HEY, I'M LOOKING AT THESE AREAS IN FRONT, ROYAL, I MEAN, IN YOUR CONVERSATIONS, I KNOW YOU'RE HAVING GOOD FEEDBACK, SO WHEN YOU SAY GOOD FEEDBACK, SOMEBODY'S GOTTA BE POINTING SOMEWHERE.
JUST VERY, JUST CURIOUS IF THERE WAS EVEN SPOT.
I MEAN, I KNOW WE'VE GOT SOME PRETTY DESOLATE AREAS THAT HAVE SOME SPOTS THAT KIND OF ALREADY HAVE ROOMS THAT THEY'RE ALREADY LOOKING TO RECREATE THINGS, AND I'M JUST CURIOUS IF THAT'S BEEN, I WOULD TELL YOU THAT THE FEEDBACK THAT WE'VE GOTTEN HAS BEEN VERY FOCUSED ON, AGAIN, THAT ACCESS INTO YOUR DOWNTOWN, UM, PEOPLE WANT WALKING BUSINESS INTO DOWNTOWN.
AND, AND, YOU KNOW, TRUTH BE TOLD AGAIN, THERE'S, UH, I THINK THAT THERE ARE SOME OPPORTUNITIES FOR HIGHER, BETTER USE IN THAT CATEGORY.
I, I, YOU KNOW, ONE THING I NEVER WANT TO DO IS COME IN AND SAY, HEY, WE'RE TEARING DOWN THIS, WE'RE TEARING DOWN THAT WE'RE, WE'RE PITCHING THIS, WE'RE PITCHING.
I WANNA BE CAREFUL ABOUT ALL OF THAT.
BUT I WOULD CERTAINLY SAY THAT, UM, THERE ARE SOME OPPORTUNITIES THAT ARE EVEN ON THE MARKET SOFTLY, QUIETLY, UH, IN SOME MORE CLOSED CIRCLES WITHIN THOSE, WITHIN THE HOTEL WORLD, UM, WHERE THEY'VE BEEN EXPLORING THAT.
SO DO YOU FEEL THAT MOVE, MAYBE REDIRECTING SOME OF THAT TARGET INTO THE HOSPITALITY WOULD BE MORE DIRECTING IT, LIKE SHOOTING A RIFLE RATHER THAN JUST TRYING TO GET A BIG OVERVIEW AND REALLY TRYING TO HONE, HONE IN ON THAT 100%? THAT'S, THAT'S, I, I APPRECIATE YOU SAYING THAT.
THAT'S REALLY, I THINK WHAT THE TARGET HAS TO BE IS, HERE'S A SITE, HERE'S YOUR RETAILER HERE, OR HERE'S YOUR HOSPITALITY GROUP, HERE'S THE GROUP THAT WE THINK WOULD BE A GOOD FIT.
YOU KNOW, LOOKING AT YOUR, YOUR LIST OF HOTEL BRANDS THAT YOU'VE WORKED WITH AND THAT, SO IN YOUR FINDINGS OF, YOU KNOW, DOING THIS FOR THE AMOUNT OF TIME YOU HAVE AND SEEING THAT YOU ARE WHERE YOU WANT TO BE IN YOUR FIRST YEAR BASED ON YOUR FEEDBACK, DO YOU THINK THAT WITHIN THE NEXT YEAR OF BEING INVESTED IN THIS, THAT YOU MIGHT ACTUALLY LAND SOMETHING? I MEAN, DOES THAT SEEM LIKE IT'S AN, YOU KNOW, A REASONABLE EXPECTATION? I MEAN, WE'VE TALKED ABOUT SOME, SOME OTHER AREAS THAT YOU'VE SAID HAVE GOTTEN IN ON THE, YOU KNOW, GOTTEN IN ON THE 10 YEAR AGO AND YEAH.
YOU KNOW, MAYBE THEY SHOT THE BALL A LITTLE LONGER, YOU KNOW, WHATEVER.
I MEAN, IS IT SURE, IS THE EXPECTANCY OF THAT WE COULD ACTUALLY HAVE A PRODUCT MOVING ON SOMETHING IN THE NEXT YEAR? OR IS THAT FIVE YEARS? LIKE WHAT'S THE TYPICAL EXPECTANCY ON THAT THOUGHT? 'CAUSE THIS SEEMS YEAH, YEAH.
YOU KNOW, LIKE WE HAD A YEAR, YOU FIGURED SOME STUFF OUT.
YOU KNOW, WE'RE IN A GREAT SPOT.
I WOULD TELL YOU THAT THE REASON THAT WE DO THE THREE YEAR PARTNERSHIP IS BECAUSE WE REALLY DO START TO SEE THOSE DEALS.
I WOULD SAY COMING TO FRUITION BY YEAR THREE, IT'S, IT'S TYPICALLY A THREE YEAR TIMELINE.
RIGHT? SO YOU DON'T SEE ANY DEALS HAPPENING IN YEAR TWO.
IF YOU DID, IT WOULD BE AMAZING.
I'M NOT SAYING THAT I GET, I GET DEALS THAT HAPPEN YEAR ONE.
I'M JUST SAYING FOR THE THOUGHT OF, YOU KNOW, WE'RE LOOKING AT, YOU KNOW, SURE.
TIME AND, AND IT'S ABOUT INVESTMENT TOO, RIGHT? YEAH.
I THINK THAT WAS SOME OF OUR CONCERN IN OUR CONVERSATION BEFORE YOU CAME WAS IS, YOU KNOW, HOW LONG, HOW FAR DOES THE INVESTMENT GET US? SURE, SURE.
YOU KNOW, WHEN DO WE ACTUALLY SEE A RETURN, YOU KNOW, WHEN, WHEN CAN WE SEE SOME OF THAT MEAT AND POTATO.
I THINK SOME OF THAT'S DETERMINED.
YOU KNOW, WHEN YOU LOOK AT, AGAIN, THERE ARE SOME EXISTING VACANCIES IN THE MARKET AND WE'VE CERTAINLY IN, IN A LOT OF WAYS TRIED TO PRIORITIZE
[00:50:01]
THAT, RIGHT? MM-HMMUM, 'CAUSE WE SEE VACANCIES AS AN OPPORTUNITY, UM, AN OPPORTUNITY TO BRING A NEW BRAND TO THE MARKET.
SO, UM, FROM THAT PERSPECTIVE, WE HAVE THAT, WE TALKED ABOUT SOME NEW INVENTORY THAT MAY, SOME OF THESE BRANDS THAT HAVE BEEN RESTRICTED FROM OTHER VACANCIES, MAYBE THE, THE NEW INVENTORY THAT'S COMING TO THE MARKET WOULD, WOULD FIT THEM.
I WOULD SAY THAT'S YOUR EASIEST, THAT'S THE QUICKEST ROUTE TO A WIN, RIGHT? BECAUSE ULTIMATELY IT'S A, IT IS A LONG PROCESS, AND I WOULD SAY THERE'S NO GUARANTEES, HONESTLY, IN, IN, IN THE RETAIL WORLD.
BUT FROM WHERE WE ARE TODAY, UM, I THINK WE WE'RE CERTAINLY MOVING IN THE RIGHT DIRECTION.
SO OUR HOPE WOULD BE THAT, THAT SOONER THAN LATER WE SEE CASH REGISTERS, YOU KNOW, CLAIMING CLAIM, YOU KNOW, THE NOISE THEY MAKE, UH, SOONER THAN LATER.
UM, BUT, YOU KNOW, IT IS A PROCESS AND IT SEEMS THAT WE'RE, WE'RE ON THE RIGHT TRACK.
SO WE'RE EXCITED TO GET IT'S RINGING.
JIMMY, THE CASH REGISTERS ARE RINGING.
THEY'RE ALL, THEY'RE ALL SURPRISED.
THEY, THEY, UH, THEY SURVIVED THIS NEAR PLANE CRASH LAST NIGHT ON THEIR WAY TO TRY TO GET HERE, SO, OH, THAT'S CRAZY.
THAT'S, THEY'RE RUNNING ON LIKE, TWO HOURS OF SLEEP, SO WE'LL HAVE TO GIVE THEM A LITTLE GRACE ON THEIR METAPHOR MIX UP OVER THERE TOO.
SO YOU HAD BROUGHT UP THE FACT THAT, YOU KNOW, WE WERE LOCAL EXPERTS.
AND, UM, AND OBVIOUSLY THERE'S, THERE'S FEEDBACK, THERE'S OPINIONS, THERE'S ALL KINDS OF DATA THAT COULD BE GETTING JUST FROM THIS TABLE.
HOW IS, HOW IS THAT SOMETHING THAT'S INTEGRATED IN YOUR NEXT YEAR OF EMOTION? YEAH, I THINK THAT, YOU KNOW, WE OBVIOUSLY, WE WANNA MAKE SURE THAT WE'RE ABLE TO HAVE OPEN AND HONEST, HONEST CONVERSATIONS, UM, ESPECIALLY WHEN IT PERTAINS TO ONGOING AND CURRENT DEALS.
WE WANNA OBVIOUSLY WORK WITHIN THE STRUCTURES THAT WE'VE GOT TO MAKE SURE THAT EVERYTHING REMAINS CONFIDENTIAL, RIGHT? MM-HMM
WHAT I WOULD SAY IS, I THINK THAT IT'S INCREDIBLY VALUABLE THOUGH, THAT WE WORK TOGETHER.
AND I THINK THAT NOW THAT I FEEL, I FEEL LIKE JIMMY AND I, AND MADISON AND OUR WHOLE TEAM, WE'VE GOT A REALLY GOOD FEEL OF WHERE THAT IS CURRENTLY.
YOU KNOW, WHO CAN WE PUSH TO HOPEFULLY START, YOU KNOW, SIGNING PAPERS AND ACTUALLY GETTING THINGS GOING? WHERE CAN WE PUSH? I THINK WE'RE IN A GOOD SPOT THERE.
WHAT I WOULD LOVE THOUGH IS THE OPPORTUNITY MAYBE TO EVEN TO SPEAK A LITTLE BIT MORE OFFLINE ABOUT SOME OF THESE OPPORTUNITIES.
THAT'S WHAT I WAS GONNA, I WAS GONNA ASK IF THERE'S AN ABILITY TO DO CLOSE SESSION, MAYBE WE SIT WITH THEM AND TALK ABOUT SOME OF THAT.
UM, CLOSED SESSION IS FOR, I DON'T KNOW HOW YOU DO IT, HOW YOU KNOW ME, I'M JUST A GUY.
YOU CAN'T JUST HAVE A CLOSE SESSION
IT HAS TO MEET SPECIFIC CRITERIA.
AND AT THIS POINT, I DON'T BELIEVE WE MEET THAT CRITERIA TO HAVE CONVERSATIONS LIKE THAT.
UM, BUT THAT DOESN'T MEAN THAT I, I WILL DO A BETTER JOB OF COMMUNICATING BETWEEN THE TWO ORGANIZATIONS WITH BETTER UPDATES.
UM, THAT'S ON, BUT WE'LL, WE'LL GET BETTER WITH THAT.
WELL, LIZ, CAN I LEAVE MY CARD WITH EVERYBODY THOUGH? UM, AND OBVIOUSLY, I MEAN, IF YOU GUYS HAVE ANY QUESTIONS, WE'LL DO WHATEVER WE CAN.
YEAH, THAT WOULD BE WONDERFUL TO ANSWER ANY OF THOSE QUESTIONS.
JUST WANNA DO WHAT WE CAN TO SERVE AS BEST WE CAN.
YEAH, AND I'LL SAY LIZZIE'S BEEN A GREAT PARTNER.
I MEAN, WE'VE HAD CALLS SPECIFICALLY ABOUT REAL ESTATE OPPORTUNITIES AND I'VE APPRECIATED THE DIRECTION THAT SHE'S PROVIDED.
BUT ULTIMATELY, YOU KNOW, WE TRY, WE DO TRY TO SHARE FEEDBACK FROM RETAILERS IN REAL TIME AND HOPEFULLY SHARING THAT FEEDBACK WITH YOU.
UM, YOU MAY HAVE KNOWLEDGE OF AN OPPORTUNITY THAT FITS, YOU KNOW, THE DIRECTION THAT THEY'RE LOOKING OR THE NEED THAT THEY'RE LOOKING TO THE BILL.
UM, SO LIKE LIZZIE SAID, IDEALLY WE'LL BOTH COMMUNICATE IN REAL TIME AND, AND HELP PUT THE PICTURE TOGETHER REAL QUICKLY, SIR, OBVIOUSLY WE'RE IN COMPETITION WITH THE CORRIDOR IN THE COUNTY SURE.
AND THE, YOU KNOW, THE PROXIMITY TO THE INTERSTATE.
WE, WE HAVE AN INCREDIBLE ASSET WITH A CHARMING DOWNTOWN AND WITH THE ENTRANCE TO THE SKYLINE DRIVE.
SO, YOU KNOW, A LOT OF US RECOGNIZE THAT.
ARE THERE INCENTIVES THAT WE CAN OFFER OR THAT COULD BE PROVIDED FROM A DOWNTOWN BASED BUSINESS LOCATING DOWN HERE VERSUS GOING OUT INTO THE CORRIDOR? THAT WOULD SEEM ATTRACTIVE.
I MEAN, YOU SAID WE WERE KIND OF LACKING, YOU KNOW, SOME OF THE INCENTIVES.
WHAT ARE SOME, JUST SOME THOUGHTS, GENERAL THOUGHTS? YEAH.
NO, I, I DON'T THINK IT'S NECESSARILY LACKING INCENTIVES.
I, I THINK, YOU KNOW, MY OPINION ON INCENTIVES IS YOU CAN DO IT ONE OF TWO WAYS.
YOU CAN ESTABLISH INCENTIVE DISTRICTS AND TAX, YOU KNOW, TAX INCREMENTAL FINANCE DISTRICTS AND THINGS LIKE THAT, WORKING WITHIN THE STATE STRUCTURES TO DO ANY OF THAT.
YOU CAN DO IT ON THE FRONT END OR YOU CAN DO IT AS THE DEALS COME TO YOU.
AND I THINK THAT THERE'S VALUE IN DOING IT EITHER WAY.
UM, WHAT I WOULD TELL YOU IS I WANT TO BE VERY, VERY, VERY CAREFUL THOUGH, ESPECIALLY WHEN YOU'VE GOT MUNICIPALITIES THAT ARE JUST REVENUE, CASH OUT LEFT AND RIGHT TO MAKE THESE DEALS COME TO FRUITION.
WELL, I THINK YOU MENTIONED PERMITTING PROCESSES.
HOW WE CAN MAKE IT A LITTLE EASIER.
I CAN, I CAN TALK ABOUT THAT FOR OKAY.
THAT, THAT, AND I, I PROBABLY SHOULD HAVE BEEN MORE SPECIFIC.
I WOULD SAY THOUGH, BE PREPARED TO ALWAYS BE PREPARED, ESPECIALLY TODAY, TO HAVE THOSE INCENTIVE CONVERSATIONS.
RETAILERS ARE GOING TO ASK FOR STUFF.
[00:55:01]
GOING TO ASK FOR STUFF.IT'S HOW THESE DEALS ARE GETTING DONE ACROSS THE COUNTRY RIGHT NOW, FORTUNATELY, OR UNFORTUNATELY, PRICING RIGHT NOW IS JUST TOUGH.
UM, FROM A PERMITTING STANDPOINT, EXPEDITED PERMITTING PROCESS, UM, PRE BASICALLY PRE-APP PERMITTING MEETINGS SO THAT PEOPLE CAN GET, PUT FEEDBACK ON ANY OF THOSE, ANY OF THOSE KIND OF, UH, PERMITTING QUESTIONS THAT THEY HAVE, PLANNING QUESTIONS THAT THEY HAVE ACCESS AND THINGS LIKE THAT.
ANYTHING THAT WE CAN DO TO SPEED THAT PROCESS UP GOES A LONG WAY.
THERE ARE CITIES OUT THERE, HUGE CITIES WHERE IT TAKES SIX MONTHS TO GET A PERMIT.
THAT'S SIX MONTHS THAT YOU'RE PAYING DOWN YOUR DEBT, THOSE SIX MONTHS THAT YOU'RE PAYING ON THE LEASE, WHATEVER THAT MIGHT BE.
IF YOU OWN THE PROPERTY AND YOU'RE PAYING FOR SIX MONTHS BEFORE YOU EVEN GET YOUR PERMITS.
I MEAN, THAT'S A, THAT'S A, THAT'S A BIG HURDLE TO, TO OVERCOME DAY ONE.
YOU KNOW, YOU'RE JUST DIGGING THAT HOLE.
SO I WOULD SAY THOSE TOWNS AND CITIES AND, AND COUNTIES, WHATEVER, WHERE THOSE PROCESSES ARE DONE FASTER GOES A LONG WAY.
'CAUSE TIME IS, TIME REALLY IS MONEY WHEN YOU'RE PAYING ATTORNEYS AND ENGINEERS AND EVERYBODY ELSE HERE, A COUPLE, UM, YEAH, PLEASE.
THERE WERE A FEW DATA SLIDES THAT WERE THERE THAT AREN'T IN THIS PACKET.
ARE THEY AVAILABLE? LIKE FOR INSTANCE, MARTIN'S, STARBUCKS? OH, YEAH, ABSOLUTELY.
UM, I THINK THE LAST TWO SLIDES MAY NOT HAVE BEEN IN HERE.
UM, WELL, THEY'RE INTRODUCED, NO, NO, ON PAGE SEVEN, SOME PACKETS LOOK PARTIAL INCOMPLETE.
WELL, ANYWAY, WELL, ANYWAY, STRAIGHT.
WE RUSHED, WE RUSHED WE'LL STRAIGHT.
I, I'M JUST ASKING, YOU KNOW, BECAUSE AGAIN, I I I, I'VE SEEN IT HERE AND WE, UM, I THINK AS MONTHS AGO WE HAD ASKED SOME OF THIS, 'CAUSE LIKE, I, I FOUND THE CELLULAR, YOU KNOW, VERY COMPELLING.
YOU KNOW, I MEAN, AND, AND YOU KNOW, OBVIOUSLY THIS, THIS IS TOO, UM, SO IT IS.
I I DIDN'T SEE IT IN MINE, BUT, BUT, UM,
UM, WELL ANYWAY, SO THAT, THAT, THAT'S ONE THING IS, IS THAT, YOU KNOW, OBVIOUSLY, UM, YOU KNOW, I THINK PART OF THIS WAS, YOU KNOW, YOU HAVE A PROCESS OF DATA COLLECTION SURE.
BEING ABLE TO, TO LOOK AT THIS FROM, YOU KNOW, 10,000 FEET AS OPPOSED TO US HERE ON THE GROUND, NOT BEING ABLE TO SEE IT.
SO SOME OF THAT I THINK IS, IS, IS IMPORTANT.
UM, I, I DON'T KNOW HOW MUCH, UH, FEEDBACK THAT YOU'VE GOTTEN FROM LIZZIE IN TERMS OF OUR DISCUSSIONS, BUT, YOU KNOW, WE'VE, WE'VE CONVERSED SOMEWHAT ABOUT HAVING, UM, YOU KNOW, ACTIONABLE GOALS, YOU KNOW SURE.
WITH YOU GUYS AND, AND HOW HOW DO WE MEASURE YEAH.
YOU KNOW, 'CAUSE BECAUSE OBVIOUSLY IT WOULD BE ANY PHYSICIAN OF ANY, ANYBODY WHO'S, WHO'S HIRING A CONSULTANCY OR SOMETHING LIKE THAT.
THEY, THEY WANNA BASICALLY HAVE, HAVE, HAVE SOMETHING THAT THEY, THEY CAN SAY, OKAY, THIS IS WHERE WE ARE.
YOU KNOW, AND, AND I, I THINK, UM, IT MIGHT HAVE BEEN TIMING.
THERE WAS THE LOSS THERE, THERE WERE SOME, YOU KNOW, WE'VE HAD SOME SETBACKS.
UM, AND SO, AND I'M NOT TRYING TO PRESS YOU FOR, FOR A BETTER TIMELINE, I'M JUST SAYING THAT YEAH.
UM, YOU KNOW, YEAR ONE, WE, OR YEAR TWO, YOU KNOW, I THINK THAT AMONG ALL OF US, I THINK WE, WE WOULD LIKE TO SEE, YOU KNOW, SOMETHING, UH, YOU KNOW, IS THERE, ARE THERE STEPS, YOU KNOW, AND, AND, AND CAN WE, YOU KNOW, UH, KIND OF HAVE A TIMELINE AS TO WHEN WE MIGHT SEE THOSE STEPS OR WHATEVER.
YOU SEE WHAT I'M SAYING? I MEAN, YEAH, ABSOLUTELY.
AND THEN, UM, I GUESS, WELL, MAYBE LASTLY, UH,
SO I'M GONNA, I, I GUESS THIS IS SORT OF PHISHING TO ME.
UM, AND NOT WITH THE PH, BUT WITH THE F UM, AND SO YOU ALL ARE, YOU KNOW, FLYING IN FROM SOMEPLACE ELSE, YOU, YOU, YOU'RE HAVING TO KIND OF, AS WE JUST DISCUSSED, GATHER THE LOCAL LORE TO UNDERSTAND, OKAY, WHAT'S THE BEST THOUGHT? RIGHT? SURE.
UM, AND THEN YOU MIGHT HAVE YOUR SUCCESS WITH A CERTAIN LURE, CERTAIN BAIT, WHATEVER.
AND, AND THEN WE'RE ALL LAUGHING BECAUSE THAT'LL NEVER WORK HERE, YOU KNOW, BUT THEY DON'T, THEY DON'T, THEY DON'T LIKE BRETT, YOU KNOW, UH, SO IT, IT IS, UM, BUT I GUESS IN, IN TERMS OF THE TOWN, IN TERMS OF WHAT YOU SEE, UM, CAN THE TOWN BE DOING THINGS AS WELL TO SWEETEN THAT FISHING HOLE, SO TO SPEAK? UH, YOU KNOW, SEE WHAT I'M SAYING? BECAUSE, YOU KNOW, IF, IF THERE'S, IF THERE'S THINGS THAT, UM, THAT ARE DOABLE, YOU KNOW, AND OR, YOU KNOW, LIKE I REMEMBER YEARS AGO, SOME, YOU KNOW, WE HAD,
[01:00:01]
WELL, WE HAVE A PROPENSITY OF BEING IN THE NEWSPAPER, WHICH SORT OF, UH, YOU KNOW, DETRACTS CERTAIN INVESTORS, CERTAIN INVESTMENTS, THINGS LIKE THAT.SO, UM, YOU KNOW, OBVIOUSLY THAT'S ONE THING.
OKAY, WELL, LET'S CLEAN THAT UP AND, AND LET'S, YOU KNOW.
ARE THERE OTHER THINGS, YOU KNOW, THAT YOU SEE FOR THE TOWN? BECAUSE WHEN, WHEN I, I REMEMBER WHEN WE WERE DISCUSSING THIS ORIGINALLY, IT WAS, IT'S BASICALLY LIKE WE NEED TO IDENTIFY WHAT WE CAN DO, HOW WE CAN DO IT.
YOU KNOW, WE DIDN'T FEEL AS THOUGH ANY OF US WERE ABLE TO REALLY COLLECT THAT INFORMATION.
AND SO I THINK THAT THAT WAS, YOU'VE DONE A A BIT OF IT, THERE'S GONNA BE MORE TO COME, YOU KNOW, AND OBVIOUSLY THIS LANDSCAPE CHANGES, YOU KNOW, THERE, UM, ABSOLUTELY.
LUCKY'S, YOU KNOW, WELL, FIVE YEARS AGO, NO ONE, NO ONE HAD HEARD OF BUCKY'S UNLESS YOU WERE IN TEXAS.
YOU KNOW WHAT I'M SAYING? SO IT, IT'S JUST ONE OF THESE THINGS WHERE, UM, YOU KNOW, OBVIOUSLY THERE'S, THERE'S ALL KINDS OF THINGS THAT, THAT, THAT, YOU KNOW, JUST SUDDENLY BLOW UP AND THERE'S NO REASON FOR IT.
THERE'S NOT, UM, AND I KNOW THAT IN THE RETAIL LANDSCAPE, IT, IT'S HARD TO, IT, IT, IT, I'M SURE IT'S VERY, VERY DIFFICULT
I DON'T THINK THAT FRONT ROYAL IS, YOU KNOW, UM, I THINK THAT'S GONNA BE SEEN IN NORTHERN VIRGINIA FAR BEFORE A FRONT ROYAL SEES IT.
AND OBVIOUSLY, AS YOU SAID, LIKE ONE OF THE THINGS YOU MENTIONED WERE ROOFTOPS.
THAT'S SOMETHING THAT THE TOWN NEEDS TO UNDERSTAND THAT, YOU KNOW, OKAY, WHEN WE'RE LOOKING AT ALL THESE PLANNING AND, AND WHATEVER, AND WE GET PUSHBACK OR, OR WHATEVER, IT'S ALMOST TIME TO SAY, OKAY, WHAT DO WE WANT? DO YOU WANT YEAH.
YOU KNOW, DO YOU WANT THE GROWTH OR DO YOU NOT WANT THE GROWTH? DO YOU NOT WANT A SHOPPING CENTER, OR DO YOU WANT A SHOPPING CENTER? YEAH.
'CAUSE YOU KNOW, WE CAN'T DO A WITHOUT B.
I MEAN, UH, TOWN COUNCIL, SEVERAL MEMBERS ON TOWN COUNCIL HAVE BEEN ASKING FOR GROCERY STORES.
BUT THEN THEY DON'T APPROVE, UH, ROOFTOPS.
YOU KNOW, THEY GO HAND IN HAND.
SO, WELL, THEY ALSO WANT RETAIL.
IF YOU'RE GONNA SEE THEM TONIGHT, MAYBE HONE IN ON THAT A LITTLE BIT, YOU KNOW, BUT, UH, NO, I, I MEAN, SO TO, TO BREAK DOWN YOUR QUESTION, I, I WOULD SAY FROM A, YOU KNOW, HOW DO WE SWEETEN THE, THE FISHING HOLE HERE? I, I DEFINITELY THINK THAT I, I DO THINK HOUSING IS IMPORTANT.
I THINK THAT HOUSING DENSITY IS IMPORTANT.
I THINK THAT WHEN YOU'RE COMPETING AGAINST OTHER, UM, OTHER MARKETS IN NORTHERN VIRGINIA RIGHT NOW THAT ARE EXPERIENCING REALLY, REALLY, REALLY HEAVY HOUSING GROWTH, I THINK THAT'S SOMETHING THAT'S GOING TO BE CONSIDERED BY THE RETAILERS.
THEY'RE GONNA LOOK AT THAT AND THEY'RE GONNA SAY, LOOK AT ALL OF THE NEW HOMES THAT ARE COMING HERE, HERE, AND HERE.
TELL ME ABOUT THE NEW HOMES RIGHT NOW.
AGAIN, THAT GETS TO A VERY DEEP LEVEL OF POLITICS THAT I, I'M JUST NOT IN TUNE WITH.
UM, YOU KNOW, PROGRESS VERSUS NOT, YOU KNOW, DEVELOPMENT, ANTI-DEVELOPMENT.
THAT'S, THAT'S A, THAT'S AGAIN, VERY, VERY, VERY TOUGH FOR ME TO GET INTO.
BUT IT IS SOMETHING THAT THE RETAILERS PAY ATTENTION TO.
THEY, THEY'RE GOING TO PAY ATTENTION TO THE HOUSING GROWTH.
THEY'RE GONNA PAY ATTENTION TO THE POPULATION GROWTH.
UM, YOU KNOW, YOU GUYS, I, I WOULD SAY OVERALL THOUGH, HOW DO WE SWEETEN THE POT? HOW DO WE GET AT ALL OF THAT? I REALLY THINK THAT WE'VE GOTTA CONTINUE PUSHING TOURISM.
AND I, I'M, I'M NOT, I DON'T WANT THAT TO BE LOST ON THE GROUP.
THAT THE, THE VALUE THAT WE HAVE IN SKYLINE DRIVE IS IMMEASURABLE.
IT IS INCREDIBLY IMPORTANT, AND IT'S REALLY CRITICAL TO SOME OF THESE OTHER RETAILERS THAT ARE GOING TO PAY ATTENTION TO THE OUTDOORS COMPONENT THAT EXISTS HERE.
RIGHT? SO WHETHER, WHETHER IT'S SKYLINE OR THE, THE NATIONAL PARK OR WHATEVER IT IS, I THINK THAT CONTINUING TO PUSH SOME OF THOSE MEASURES, PUSH THOSE FESTIVALS AND THOSE OPPORTUNITIES THAT ARE GONNA DRAW PEOPLE IN, THAT HELPS TO OVERCOME SOME OF THAT, SOME OF THE OTHER THINGS THAT WE'VE TALKED ABOUT, RIGHT? SO SOME OF THOSE NEWS ARTICLES AND THINGS LIKE THAT, NOBODY KNOWS ABOUT THAT ANYMORE.
THE, THE NEWS CYCLES AND, AND THAT, THAT WE HEAR AND THAT WE TALK ABOUT THERE, THERE'S, PEOPLE ARE SO SHORTSIGHTED NOW, THEY'RE, THEY DON'T, THEY DON'T HEAR ABOUT THOSE ARTICLES.
THEY'RE NOT SEEING THAT, YOU KNOW, WHAT THEY'RE LOOKING AT IS THEY'RE GOOGLING, OR, YOU KNOW, THEY'RE PLUGGING IT INTO CHAT GPT, AND THEY'RE SAYING, HOW MANY HOUSES HAVE BEEN BUILT? GIVE ME, YOU KNOW, TELL ME ABOUT NEW ECONOMIC DEVELOPMENT INITIATIVES.
HOW MANY, HOW MANY PEOPLE ARE VISITING FRONT ROYAL ANNUALLY? HOW MANY PEOPLE ARE DRIVING SKYLINE DRIVE? HOW MANY PEOPLE ARE, HOW MANY, YOU KNOW, THOSE ARE THE KIND OF THINGS THAT'S THE KIND OF DATA AND THE KIND OF RESEARCH AND THE KIND OF PIECES OF THE PUZZLE THAT I THINK REALLY HELPS SELL A TALENT.
UM, EVERY TOWN HAS THEIR, HAS THEIR THING, RIGHT? HAS THEIR, YET HAS WHAT MAKES THEM UNIQUE, WHAT MAKES THEM SPECIAL.
YOU GUYS HAVE A REALLY, REALLY, REALLY BIG ONE
[01:05:01]
AS A, YOU HAVE A NATIONAL PARK.THERE'S NOT A LOT OF COMMUNITIES THAT ARE LITERALLY AT THE MAIN GATE OF A NATIONAL PARK THAT IS SUPER UNIQUE.
AND I, I THINK YOU'VE GOTTA CONTINUE TO HAMMER ON THAT.
AND I THINK THAT THAT'S SOMETHING THAT ULTIMATELY, THIS IS, AGAIN, THERE'S ANOTHER CONVERSATION TO BE HAD ABOUT HOW MUCH TOURISM DO YOU WANT, RIGHT? BUT THOSE TOURISM DOLLARS ARE REALLY IMPORTANT, AND YOU'VE GOT ACCESS TO A LOT OF DOLLARS IN NORTHERN VIRGINIA.
IT'S ONE OF THE WEALTHIEST AREAS AND ONE OF THE WEALTHIEST REGIONS IN AMERICA.
SO IF YOU CAN CONTINUE DOING WHAT YOU'RE DOING TO CAPTURE THOSE DOLLARS, TO CAPTURE THAT SPEND ON THE WEEKENDS, HOPEFULLY THROUGHOUT THE WEEK, BUT FRIDAY, SATURDAY, SUNDAY, IF YOU CAN CONTINUE TO CAPTURE THOSE DOLLARS, THAT'LL AFFECT EVERYBODY THAT'LL HAVE A POSITIVE IMPACT ON EVERYTHING.
AND ULTIMATELY, IF YOU'RE A NICE PLACE TO VISIT, IT ULTIMATELY LEADS TO BEING A NICE PLACE TO LIVE, TOO.
PEOPLE WILL CHANGE THEIR MINDS.
THEY'LL OPEN UP WHATEVER THEY'RE THINKING ABOUT IN THE AREA BASED ON THE FACT THAT MAYBE YOU'VE GIVEN THEM A REASON TO VISIT IN A PLACE THAT THEY'VE NEVER VISITED BEFORE.
ALL OF A SUDDEN, THEY FALL IN LOVE WITH IT.
SO, AGAIN, IT'S A LONG ANSWER, BUT I THINK THAT CONTINUING TO PUSH THOSE INITIATIVES, REALLY, IT GOES A LONG WAY.
AND THE TRICKLE DOWN IS IMPORTANT.
THERE WAS ANOTHER QUESTION I, I, I KIND OF RAMBLED.
WHAT WAS THE FIRST QUESTION? I APOLOGIZE.
WHAT? NO, WE WERE, I, I WAS JUST TALKING ABOUT THERE'S THE MEASURES, OBVIOUSLY THE GOALS, AND THEN, AND THEN MORE OR LESS THAT IN TERMS OF WHAT, WHAT, YOU KNOW, YOU'RE WORKING ONE END OF IT, BUT WE HAVE TO, YOU KNOW, SURE.
WE HAVE TO LOOK AT WHAT WE HAVE AND, AND IF WE CAN SHAPE IT, UM, TOWARDS THOSE GOALS, THEN, THEN, YOU KNOW, THAT THAT'S HOW WE WORK TOGETHER.
YOU KNOW, US JUST SITTING HERE AND THINKING THAT IT'S GREAT AND YOU SEE IT TOTALLY, YOU KNOW, AGAIN, THERE'S A LOT OF WAYS INTO THIS TOWN, AND SOME, SOME ARE MORE ATTRACTIVE THAN OTHERS.
AND SO, UM, YOU KNOW, IT, IT IS LIKE, YOU KNOW, YOU, YOU DON'T SEE THE MESS IN YOUR OWN HOME BECAUSE YOU LIVE THERE EVERY DAY AND YOU SORT OF START TO OVERLOOK IT.
UH, YOU KNOW, AS SOON AS YOUR NEIGHBOR COMES OVER THOUGH, LIKE, YOU KNOW SURE.
WHATEVER, YOU KNOW, AND, AND IT'S JUST, IT, IT'S ONE OF THESE THINGS WHERE YOU, YOU KNOW, I THINK THAT WE HAVE TO BE REALISTIC TOO AND, AND LOOK AT, YOU KNOW, OKAY, WELL, WHAT CAN WE DO? WHAT, WHAT ARE SOME STEPS WE CAN DO TO YEAH.
YOU KNOW, OBVIOUSLY, UM, YOU KNOW, MAKE THIS SUCCESSFUL.
ULTIMATELY IT IS SMALL STEPS THAT BUILD UPON THEMSELVES.
IT'S THE SAME THING IN, SAME THING IN NATIONAL RETAILER GROUP.
IT'S SMALL THINGS THAT BUILD UPON ITSELF AND ULTIMATELY LEAD TO OUR ABILITY TO ATTRACT A LARGER RETAILER, RIGHT? WE, WE HAVE A TERM IN OUR OFFICE, WE CALL IT THE RETAIL LADDER.
ULTIMATELY, WE WANT TO GET HERE.
WHAT ARE THE STEPS WE GOTTA TAKE TO HIT THAT? SO IF OUR GOAL AT THE END OF THE DAY IS WE WANT, YOU KNOW, THESE A HUNDRED MILLION DOLLAR STORES, WHAT DO WE HAVE TO DO TO HIT THAT? AND THERE'S A LOT OF RETAILERS THAT FALL IN BETWEEN THOSE STORES, BETWEEN, I WON'T NAME 'EM, BUT BETWEEN THE ONES WHO'S ON, YOU KNOW, EVERY STREET CORNER ACROSS AMERICA WITH A BRIGHT YELLOW SIGN ALL THE WAY UP TO THE GUYS AT THE VERY TOP WHO ARE DOING $150 MILLION IN SALES A YEAR.
THERE'S A LOT OF RETAILERS THAT FALL BETWEEN THAT GAP RIGHT THERE.
HOW DO WE ULTIMATELY BUILD THAT UP? IT'S THE SAME THING FOR ANY TOWN.
IT'S THE SAME THING FOR ANY CITY.
IT'S THE SAME THING FOR ANY, ANY MUNICIPALITY, IS HOW DO YOU BUILD THOSE STEPS? WHAT ARE THOSE STEPS? IS IT HOUSING? IS IT RECREATION? IS IT TOURISM? IS IT, UM, YOU KNOW, JOBS? IS IT JOBS? I MEAN, THAT'S ANOTHER PIECE OF THIS IS, YOU KNOW, WHAT KIND OF JOBS ARE LONG TERM BEING FORECASTING CREATED? I THINK ALL OF THAT PLAYS INTO IT.
ALL OF IT SOMEHOW INTEGRATES AND PLAYS INTO THE RETAIL COMPONENT.
I REALIZE IT'S A VERY UNUSUAL REQUEST, BUT I'D LIKE TO ASK A QUESTION IF I MAY, THAT MAY BE OF INTEREST TO THE GROUP.
UH, GENTLEMEN, YOU TALKED ABOUT ON PAGE 18, THE HIGH ASKING PRICES OR RESTRICTED PROPERTY CONDITIONS THAT LIMIT THE RED, UH, READILY AVAILABLE SITES.
SO WE JUST LEARNED RECENTLY, MARSHALLS, UH, ANNOUNCED AN OPENING IN LERAY, WHICH IS IN PAGE COUNTY PAGE COUNTY'S POPULATION IS APPROXIMATELY, WELL, ACCORDING TO GOOGLE, 24,000 PEOPLE.
WE HAVE STORES THAT ARE OPEN RETAIL SPACES, AND, AND YOU TALK SPECIFICALLY ABOUT RURAL PLAZA AND OUR OTHER SHOPPING CENTER.
SO CAN YOU SPEAK TO WHY OR HOW THEY GOT A MARSHALS? AND WE'RE SITTING HERE WITH EMPTY STOREFRONTS TWICE THE POPULATION WHEN YOU ADD THE CIRCLE AROUND US, WHY THEM? WHY NOT US? I THINK IT'S A VERY GOOD QUESTION.
THERE'S A, THERE'S ANOTHER GROUP THAT'S GOING TO LARAY RIGHT NOW THAT I,
[01:10:01]
I KNOW AS WELL.AGAIN, I THINK THAT A LOT OF THOSE CONVERSATIONS HAVE BEEN GOING ON FOR A LONG TIME.
I DON'T KNOW WHY LORAY, I, I DON'T WANT TO PRETEND LIKE I KNOW ALL OF THE ANSWERS AND ALL OF THE DETAILS.
AT THE END OF THE DAY, EVERYTHING IN RETAIL COMES DOWN TO A NUMBER.
IT'S ALL ABOUT HOW MUCH PROFIT CAN WE STAND TO MAKE IN THIS MARKET VERSUS THAT MARKET.
I HAVEN'T DONE A DEEP DIVE ON LORAY.
I DON'T, I DON'T KNOW THE INS AND OUTS.
THAT'S, IT'S SOMETHING THAT I THINK IS WORTH A QUESTION, RIGHT? WHY THEM? WHY NOT US? I WOULD TELL YOU THAT IF MARSHALLS IS LOOKING AT IT, IF THE OTHER GROUPS THAT I KNOW OF ARE LOOKING AT IT, YOU KNOW, THEY'RE LOOKING FOR A VERY SPECIFIC SPACE.
THEY'RE LOOKING FOR VERY, VERY, VERY SPECIFIC SPACE.
THEY KNOW THEIR SQUARE FOOTAGE NUMBERS DOWN TO A T, THEY'RE ONLY WILLING TO GO MAYBE 2000 SQUARE FEET OFF OF THAT, WHICH IN THE GRAND SCHEME OF THINGS, FROM A PERCENTAGE BASIS, IS LESS THAN 5% VARIANCE FROM THEIR SPACES.
IF YOU HAVE THAT SPACE AND THAT SPACE IS READY TO GO, IT AUTOMATICALLY GIVES YOU A LEG UP.
AND THAT'S JUST, THAT'S FOR ANY MARKET ANYWHERE.
IF YOU'VE GOT A, IF YOU'VE GOT THE OPEN SPACE AND YOU HAVE THAT VACANCY OF THEIR SIZE OR THEIR SQUARE FOOTAGE THAT THEY WANT, IT AUTOMATICALLY GIVES YOU A LEG UP.
THE, WHEN WE PLAY, WHEN WE, WHAT WE TALK ABOUT WITH THE RESTRICTIVE COVENANTS AND THINGS LIKE THAT, THAT ARE ON SPACES, YOU KNOW, ONE OF THE THINGS THAT WE'VE RUN INTO HAS BEEN THAT YOU GUYS HAVE A REALLY DIVERSE BASE WITHIN YOUR SHOPPING CENTERS, WHICH IS A VERY, VERY GOOD THING.
THE DOWNSIDE OF THAT IS, IT ALSO AMIDST THE POOL OF RETAILERS THAT CAN GO INTO THAT, BECAUSE YOU'VE GOT THAT DIVERSITY OF RETAIL TYPES.
SO WHEN ONE RETAILER COMES IN, THEY'RE PROTECTING THEMSELVES.
THEY'RE EITHER PUTTING IT IN THEIR LEASE THAT YOU CAN'T DO ANYTHING THAT COMPETES DIRECTLY WITH THEM.
UM, RETAILERS WILL NAME RETAILERS THAT CAN'T COME IN.
THEY'LL SPECIFICALLY SAY, YOU CAN'T ALLOW THIS TENANT OR THIS TENANT, OR WHATEVER THEY'LL SPECIFICALLY NAME USES THAT THEY'RE NOT COMFORTABLE WITH.
THEY'LL NAME HEIGHT RESTRICTIONS IN FRONT OF THE SPACE SO THAT THEIR VIEW IS PROTECTED.
UM, SIGNAGE RESTRICTIONS, I MEAN, IT, IT GOES ON AND ON AND ON ABOUT WHAT THEY'RE GONNA DO AND WHAT THEY'RE GONNA DEMAND FROM A LANDLORD.
OBVIOUSLY, THE LANDLORD DOESN'T HAVE TO GIVE ALL OF THAT, BUT IF YOU'RE TRYING TO LEASE THE SPACE, YOU'RE GONNA LISTEN, YOU'RE GONNA DO THE DEAL, AND YOU'RE GONNA MAKE THAT DEAL HAPPEN.
IF THEY'VE GOT A SPACE IN LARAY OR ANYWHERE, WE COULD BE TALKING ABOUT A SPACE IN THE MIDDLE OF, YOU KNOW, UH, 25,000 POPULATION TOWN IN ARIZONA, BUT THEY'VE GOT THAT SPACE, THEY'RE AUTOMATICALLY GONNA GET MOVED UP THAT LIST.
THEY'RE AUTOMATICALLY GONNA BE VIEWED PRETTY FAVORABLY BECAUSE THEY'VE GOT A BROKER THAT'S INCENTIVIZED TO DO A DEAL LOOKING AT THAT OPPORTUNITY, AND THEY'RE SENDING THAT DEAL.
THEY'RE SAYING, HEY, HERE'S THE DEAL.
THEY'RE TOLD THE RETAIL, THE RETAIL REAL ESTATE DIRECTORS ARE TOLD THE BEGINNING OF THE YEAR HOW MANY STORES THEY'VE GOTTA OPEN.
THEY'RE GONNA GO AFTER GETTING THOSE STORES.
PERFORMANCE IS BASED ON THEIR JOBS ARE BASED ON HITTING THOSE NUMBERS, HITTING THEIR GOALS.
THEIR STOCK IS OFTENTIMES DEPENDENT UPON HITTING THOSE GOALS, MAKING SURE THAT THEY'RE OPENING THESE STORES TO DRIVE THAT REVENUE.
YOU CAN'T KEEP INCREASING PRICES IN THE STORES.
HOW DO YOU MAKE MORE MONEY? YOU JUST KEEP OPENING NEW STORES.
AND THERE'S A LOT OF RETAILERS THAT HAVE GOTTEN IN TROUBLE DOING THAT.
THERE'S A LOT OF RETAILERS WHO HAVE MADE IT WORK DOING THAT.
THAT'S ULTIMATELY HOW THAT MAP ENDS UP WORKING.
SO WHAT THEY'RE GONNA DO IS THEY'RE JUST GONNA KEEP OPENING IN STORES.
IF YOU'VE GOT A SPACE AND THE MARKET WORKS, OR COMES CLOSE TO WORKING, THEY'RE GONNA TAKE THAT RISK.
THEY'RE GONNA GO TO A MARKET BECAUSE THEY'VE GOT THE SPACE.
AGAIN, THAT'S WHY I THINK WE'VE GOTTA LOOK AT THOSE OPPORTUNITIES FOR EXISTING SITES HIGHER AND BETTER USE OPPORTUNITIES FROM REDEVELOPMENTS, THINGS LIKE THAT, WHERE WE CAN COME IN AND WE CAN SAY, HEY, WE MIGHT NOT HAVE THE PERFECT SECOND GEN SPACE FOR YOU.
OR WE MIGHT NOT HAVE THE NEXT, UM, MAJOR POWER CENTER DEVELOPMENT WITH 500,000 SQUARE FEET OF RETAIL COMING.
YOU KNOW, THAT'S FULLY FUNDED AND BEING DEVELOPED AND ALL OF THAT, AND THEY'VE GOT SPACE.
WHAT WE DO HAVE IS WE'VE GOT A PAD FOR YOU.
WE'VE GOT AN OPPORTUNITY FOR YOU TO TEAR DOWN A BUILDING AT A REASONABLE PRICE, HOPEFULLY, AND BUILD SOMETHING NEW.
I WOULD TELL YOU THAT, YOU KNOW, WHEN WE'RE ATTRACTING THOSE KIND OF RETAIL TENANTS, YOU GOTTA HAVE ONE OF TWO THINGS.
AND THIS IS THE WHOLE, EVERYTHING I JUST SAID CAN BE BOILED DOWN TO TWO THINGS.
YOU GOTTA HAVE ONE OF THESE TWO, YOU GOTTA HAVE A NEW DEVELOPMENT THAT'S COMING, COMING OUTTA THE GROUND WHERE THEY CAN TA TIE THEIR DEAL INTO SOMEBODY ELSE'S, A GROCER, A MAJOR RETAILER THAT'S COMING IN THAT MAYBE IS GONNA PAY A HIGHER RENT.
THEY GET A BETTER DEAL, THINGS LIKE THAT.
BUT YOU GOTTA HAVE NEW DEVELOPMENT, OR YOU HAVE TO HAVE AN EXISTING BOX THAT FITS THEIR PARAMETERS.
IF YOU DON'T HAVE EITHER OF THOSE, THERE'S NOWHERE FOR THEM TO GO.
THEY'RE NOT GONNA BUILD A BRAND NEW BOX OUT OF THEIR GROUND ON THEIR OWN.
THEY, THEY JUST RELY ON THESE DEALS BEING READY TO GO FOR THEM.
WELL, THEN TO FOLLOW UP ON THAT, WHEN YOU WERE TALKING ABOUT HIGH ASKING PRICES, COMPARATIVELY SPEAKING, CAN YOU ELABORATE ON THAT? SO I WOULD TELL YOU FIRST AND FOREMOST ON, ON ASKING PRICES IN NORTHERN VIRGINIA ARE HIGH TO BEGIN WITH.
YOU'VE JUST GOT HIGH PRICES, RIGHT? IT'S, THERE'S, WE'RE NOT IN NORTHERN VIRGINIA, SURE.
[01:15:01]
CLOSE ENOUGH TO SOME OF THOSE MAJOR MARKETS WHERE THOSE PRICES ARE VERY HIGH.BUT I THINK THAT IT POTENTIALLY IMPACTS SOME OF THAT.
IF YOU'RE LOOKING AT RESTAURANT PRICES, IF YOU'RE LOOKING AT, UM, PAD SITE PRICES, THINGS LIKE THAT, THEY'RE ULTIMATELY DETERMINED BY A PRETTY LARGE MARKET.
I MEAN, I, I KNOW THAT IF I'M LISTING A PROPERTY HERE AND 30 MILES AWAY, THE SAME RETAIL, THE SAME RETAIL TYPE PAD SITE IS SELLING FOR X, UH, I'M GONNA CONSIDER THAT AS PART OF MY COMPS.
IT'S NOT JUST GOING TO BE THE LOCALS.
'CAUSE AGAIN, NATIONAL RETAILERS LOOK AT IT FROM A VERY, VERY BROAD BASE.
ULTIMATELY, COMPS DON'T MATTER AS MUCH AS THEY SHOULD.
IN COMMERCIAL REAL ESTATE, PARTICULARLY IN RETAIL REAL ESTATE.
WHAT REALLY MATTERS IS THEIR ABILITY TO MAKE PROFIT.
THEY'RE GONNA LOOK AT THE OPPORTUNITY.
THEY'RE GONNA SAY, HOW MUCH CAN WE MAKE AFTER THE BILLS ARE PAID? RIGHT? SIMPLE, SIMPLE, SIMPLE ECONOMICS FOR THEM.
SO THEY DON'T CARE IF THEY'RE PAYING $300 A FOOT TO BE IN MANHATTAN, OR IF THEY'RE PAYING $8 A FOOT TO BE IN SOMEWHERE IN RURAL AMERICA.
WHAT THEY DO CARE ABOUT IS WHAT'S OUR RETURN? AND SO IF THE RETURN DOESN'T MATCH UP, THAT'S WHERE THAT, THAT'S WHERE THAT NUMBER BECOMES AN ISSUE.
AND THE FEEDBACK THAT WE'VE GOTTEN, IT'S NOT ABOUT A SPECIFIC PROPERTY OR A SPECIFIC SITE OR A SPECIFIC NUMBER.
IT'S ABOUT, HEY, WE'VE HEARD, OR WE'RE SEEING THESE NUMBERS ARE HIGH, WE'RE NOT GONNA BE ABLE TO MAKE OUR NUMBERS WORK.
IT'S NOT A SPECIFIC NUMBER, PER SE.
IT'S REALLY MORE ABOUT JUST PRICES ARE HIGH.
WE GOTTA, WE GOTTA FIGURE OUT A WAY TO CUT COSTS SOMEWHERE IN THIS.
AND MAYBE IT'S THAT THEY PULLED MONEY FROM SOME OTHER PART OF THEIR DEVELOPMENT BUDGET.
MAYBE IT'S SOME OTHER WAY TO REDUCE SITE SIZES.
THEY CUT, CUT DOWN ON THE ACTUAL ACREAGE, WHATEVER IT IS.
YOU KNOW, I'LL TELL YOU, THAT'S PROBABLY THE BIGGEST TREND RIGHT NOW THAT WE'RE SEEING IN RETAIL, IS DOWNSIZING, JUST TO MAKE UP FOR THAT COST.
IT'S WHY THE, YOU KNOW, HALF ACRE COFFEE GUYS ARE, ARE ABLE TO BE SO SUCCESSFUL RIGHT NOW IS THEY CAN COMPETE FOR PROPERTIES BECAUSE THEY'RE ONLY BUYING HALF OF IT.
I FEEL LIKE I TOOK ALL OF YOUR TIME TODAY, GUYS, SO NO, NO, NO.
THIS IS REALLY IMPORTANT DISCUSSION, AND UNLESS ANYBODY HAS SOMETHING PRESSING, MAYBE YOU CAN LEAVE YOUR CARD.
WE'RE, UM, WE'RE ACTUALLY GONNA GO OUT AND UPDATE ALL OF OUR SITE ANALYSIS, MAKE SURE THAT WE'VE GOT EVERYTHING UP TO DATE, ALL OF OUR CONTACTS AND ALL OF THAT.
THAT'S MY CELL PHONE, THAT'S MY EMAIL, OBVIOUSLY.
IF YOU GUYS HAVE ANY QUESTIONS, I, I'M HAPPY TO TAKE 'EM.
I'M HAPPY TO SCHEDULE A OTHER CONVERSATIONS IF YOU GUYS HAVE ANY MORE DETAILS YOU GUYS WANT ON ANYTHING, HAPPY TO DIVE INTO THAT AS WELL.
SOUNDS LIKE YOU'RE, UH, YOU'RE ABOUT DONE HERE, SO CONGRATULATIONS.
YOU MIGHT NOT HAVE TO EMAIL ME.
MY LAST PITCH, AND THIS IS THE, THE LAST OFFER THERE JUST TO THE DEGREE, IS, YOU KNOW, WE, UH, WE INVEST A LOT IN OUR, UH, IN OUR DATA.
THAT'S SOMETHING THAT'S INCLUDED IN OUR CONTRACT.
AND IF YOU GUYS HAVE DATA REQUEST FOR YOUR OWN BUSINESS OR FOR ANOTHER BUSINESS IN TOWN, LET ME KNOW.
IT'S KIND OF THE, UH, WE'RE CALLED RETAIL STRATEGIES.
IT'S INCLUDED IN THE CONTRACT.
I ALWAYS JUST ASK IN THREE DAYS AND WE WILL CRANK OUT A DATA REPORT FOR YOU OR YOUR BUSINESS OR WHATEVER YOU, WHATEVER YOU NEED.
IS THAT, IS THAT, AS FAR AS THE DATA REPORT IS, THAT'S JUST, THERE'S JUST LIKE A GENERAL DATA REPORT FOR THE AREA THAT YOU MAYBE COULD SHARE FOLLOWING THIS MEETING? YEAH, ABSOLUTELY.
WELL, IT SOUNDS LIKE WHAT I THINK WOULD BE HELPFUL IS PROBABLY UPDATED, UH, GAP ANALYSIS, DOING AN UPDATED GAP, HIGHLIGHTING THOSE TARGETED AREAS WHERE THERE IS A GAP OR THERE IS A SURPLUS, AND TALK ABOUT THAT.
UM, AND THEN I CAN GIVE YOU GUYS BASICALLY UPDATED DEMOGRAPHIC REPORTS FOR SOME REASON.
I, I CAN GIVE YOU ANYTHING AND EVERYTHING, BUT I THINK WHAT'S IMPORTANT IS I'LL GIVE YOU KIND OF THE, THE HIGH LEVEL THE STUFF THAT YOU NEED.
YEAH, THAT WOULD BE, IF YOU GOT ANY OTHER QUESTIONS, YOU JUST LET ME KNOW.
THANK YOU GUYS FOR, FOR SHARING AND FOR EVERYTHING.
WELL, WE APPRECIATE, WE, WE REALLY APPRECIATE YOU GUYS.
SO THANK YOU FOR, UH, GIVING US THE OPPORTUNITY TO WORK.
I'LL HEAR DIFFERENT QUESTIONS FROM YOU.
UM, LIZ, YOU WANNA BRIEFLY TALK ABOUT THAT APP YOU WERE WORKING ON? SURE, SURE.
[01:20:01]
AND THE DOWNTOWN FRONT ROYAL ORGANIZATION AND THE CHAMBER PARTNERED UP AND WE CREATED, WE WORKED WITH AN APP DEVELOPER TO CREATE AN APP FOR THE HOLIDAY SEASON.SO, UM, IT'S A FREE APP FOR FOLKS TO DOWNLOAD.
WE'RE USING A PLATFORM CALLED LET'S RALLY.
AND SO THEY CREATED THIS APP THAT'S SPECIFIC TO FRONT ROYAL.
UM, I MEANT TO BRING A QR CODE TODAY, BUT I FORGOT, AND I'M SORRY.
UM, IT ALLOWS US TO, THERE'S A BUNCH OF LANDING PAGES.
IT'S VERY STRUCTURED, VERY SIMILARLY TO THE FLOW PAGE THAT WE'VE DONE FOR, FOR FRIDA AND FOR OTHER THINGS.
UM, BUT IT HAS SOME UNIQUE FEATURES.
UM, ONE OF THOSE THINGS IS THAT WE'RE TRYING TO ENCOURAGE PEOPLE TO ACTUALLY DOWNLOAD THE APP.
SO WE GAMIFIED IT WHERE THEY CAN SCAN AND CHECK IN IN DIFFERENT LOCATIONS.
SOME OF YOU AT THE TABLE HAVER CODES IN YOUR BUSINESSES SINCE YOU'RE IN THE DOWNTOWN, WE APPRECIATE YOU.
UM, SOME OF YOU HAVE TENANTS WHO HAVE QR CODES IN THEIR BUSINESSES, AND WE APPRECIATE YOU TOO.
UM, I'VE NEVER BEEN UP THE STAIRS AT THE CATCH MALL CARD SHOP UNTIL OVER THE WEEKEND.
UM, AND HOLY CRAP, THERE WERE 25 PEOPLE IN THERE WHEN I WAS IN THERE.
UM, BUT THE IDEA IS THAT WE WANNA GET FOLKS COMING DOWNTOWN, UM, SHOPPING, EATING, HAVING A BEVERAGE, WATCHING A CHRISTMAS MOVIE, WHENEVER THE CASE MAY BE.
UM, SO WE HAVE THE ABILITY TO, NOT ONLY ARE WE HAVING FOLKS CHECK IN, WHICH GIVES THEM ENTRIES INTO THE GIVEAWAY THAT DOWNTOWN FOR OIL'S GONNA DO ON DECEMBER 20TH.
UM, BUT IT GIVES US THE ABILITY TO DO PUSH NOTIFICATIONS.
SO WE'VE DONE SIX, I THINK SO FAR.
UM, WE DID SOME ON BLACK FRIDAY, SOME ON SMALL BUSINESS SATURDAY.
WE'LL DO SOME THROUGHOUT THE WEEK THIS WEEK.
UM, AND THEN OF COURSE, WE'RE GONNA DO SOME DURING THE MERRY MARKET AND THE CHRISTMAS PARADE ON SATURDAY.
AND THEN THE IDEA IS TO CONTINUE TO DRIVE FOLKS TO COME DOWNTOWN, UM, TO SPEND TIME, HOPEFULLY SPEND A LITTLE HARDER EARNED MONEY, UM, AND CREATE MORE POSITIVE EXPERIENCES IN OUR HISTORIC DISTRICT.
SO IT WAS A PRETTY SMALL INVESTMENT.
UM, AND THIS IS VERY MUCH A TRIAL BALLOON.
UM, WE'RE, WE'RE GONNA, HOPEFULLY WE'RE GONNA NOT BURN THIS FIRST PANCAKE TOO MUCH, BUT, UM, SO FAR IT'S BEEN PRETTY GOOD.
WE'VE HAD A COUPLE LITTLE GLITCHES, BUT NOTHING TOO MAJOR.
UM, I PUT THE WRONG ADDRESS FOR A BUSINESS, BUT WE GOT THAT FIXED.
UM, I WAS ONLY OFF BY ONE NUMBER, BUT, BUT IT'S, IT'S KIND OF A COOL WAY FOR US TO ENGAGE WITH THE LOCAL RETAILERS, UM, AND RESTAURANTS, UM, AND ATTRACTION.
SO THE IDEA IS THAT THIS FIRST PHASE, WE'RE TRYING IT OUT.
WE'RE GETTING PEOPLE KIND OF USED TO USING THE APP AND THEN, UM, WE'D BE ABLE TO, THEY WOULDN'T HAVE TO DOWNLOAD ANYTHING ADDITIONAL.
WE'D BE ABLE TO CREATE NEW EVENTS.
UM, AND IT CAN BE A, A SEASON OF AN EVENT.
IT CAN BE A ONE DAY THING, IT COULD BE ANY NUMBER OF THINGS.
AND THEY WOULD ALL BE HOUSED IN THE SAME APP.
SO IT WOULD PUSH OUT NOTIFICATIONS, THEY'D BE ABLE TO CHECK OUT INTERACTIVE MAPS, THAT SORT OF THING.
I WOULD ENCOURAGE ALL OF YOU TO CHECK IT OUT.
I'LL SEND YOU A LINK AS SOON AS WE LEAVE THIS MEETING.
UM, BUT YEAH, THE IDEA IS TO, IS TO GIVE THIS A GO.
AND THEN IF THIS WORKS WELL, THERE'S ACTUALLY A COOL, UM, THE BUSINESS SIDE.
SO YOU CAN CREATE YOUR OWN PROFILE, LIKE AS A RETAILER AND BE ABLE TO ADJUST, YOU KNOW, ALL THE RETAILERS HAVE PROFILES RIGHT NOW THAT HAVE THEIR HOURS AND HAVE LINKS TO THEIR SOCIAL MEDIA, UM, PHOTOS, THAT KIND OF THING.
AND THEY'D BE ABLE TO ACTUALLY GO IN AS A RETAILER AND EDIT OR UPDATE THAT INFORMATION AS WELL.
UM, THAT'S A HOPE FOR FACE TWO TWO.
WE SAW EACH OTHER JUST BEFORE THANKSGIVING.
I WENT INTO THE THEATER AND THERE HE WAS.
OH, SO YOU CAN, YOU CAN PASS THAT AROUND AFTER THE IS IS THIS? YEAH, IT'S A, IT'S, UH, IT'S GOT A WEBSITE THAT'LL TAKE YOU TO THE WEB BASED VERSION.
THEN YOU CAN CLICK ON IT TO JUST DOWNLOAD.
UM, AND THIS IS LIVE NOW? IT IS.
YEAH, WE JUST LAUNCHED ON FRIDAY, SO I DON'T KNOW HOW MANY DOWNLOADS THERE ARE, BUT I GOT ENOUGH MESSAGES ABOUT, HEY, THIS IS SPELLED WRONG, OR HEY, THIS IS THAT, THAT TOLD ME PEOPLE ACTUALLY DOWNLOADED IT.
SO, YOU KNOW, THERE'S SOMETHING TO BE SAID FOR THAT.
ALL FEEDBACK IS GOOD FEEDBACK.
YEAH, I THINK SO THIS WILL BE RUN THROUGH THE HOLIDAYS AND THEN YEAH, WE'RE ACTUALLY GONNA RUN IT THROUGH THE END OF JANUARY BECAUSE I HAVE VISIONS OF DOING, UM, A PARTNERSHIP WITH THE CHAMBER IN A, IN A, UM, PART OF LIKE A PUB CRAWL.
I WANNA DO A HOT CHOCOLATE CRAWL, A COCOA CRAWL.
AND JANUARY 31ST IS NATIONAL HOT CHOCOLATE DAY, AND IT HAPPENS TO BE A SATURDAY.
SO I FEEL LIKE THE WORLD IS ALIGNED AND I GET TO HAVE MY COCOA CRAWL.
SO WE'RE KEEPING THAT APP RINGS END ON MAINSTREAM, RIGHT.
SO, UM, WE'RE GONNA KEEP THE APP OPEN THROUGH THAT DAY, UM, SO THAT I CAN USE IT FOR NOTIFICATIONS AND STUFF TOO.
SO THE IDEA IS REALLY THAT KIND OF, THAT AS WE REFER, TURN TOWARDS THAT
[01:25:01]
SHOULDER SEASON, THIS, THIS WINTER TIME OF LIKECAN I ASK A QUESTION? UM, DOES ANYBODY IN THE ROOM KNOW, UH, WHAT'S THE LATEST ON 14TH AND SHENANDOAH? THE FORMER
AND I JUST WAS CURIOUS THAT, DOES ANYBODY KNOW? IS THAT, THAT'S PROBABLY A BETTER QUESTION FOR LAUREN.
UM, I, I, IT APPEARS THAT THEY'RE BUILDING, THEY'RE CREATING A NEW FACADE, BUT I THINK THAT THE STATUS IS STILL THE SAME, SAME MARKETING THAT BOTH, UM, STOREFRONT MARKET.
I MEAN, I'VE READ THE REALTOR AS OF RIGHT NOW.
I DON'T KNOW IF JOE KNOWS ANYTHING ELSE ABOVE.
I'M SURE IT'S GONNA BE BEAUTIFUL.
I JUST WAS CURIOUS 'CAUSE IT WAS, YOU KNOW, INSTEAD OF TEARING IT DOWN, THEY WERE ADDING STUFF.
IT SEEMS TO BE IN A BIT OF METAMORPHOSIS.
UH, SO WE'RE RUNNING KIND LONG.
UH, DOES ANYBODY HAVE ANYTHING ELSE IN THOSE CATEGORIES? WORKFORCE, INFRASTRUCTURE, ASSETS, DEVELOPMENT? UH, GO AHEAD.
YEAH, I SENT ALONG THOSE TEXT EDITS.
UH, REAL BRIEFLY, I ATTENDED, UM, THE TOP OF VIRGINIA REGIONAL ECONOMIC DEVELOPMENT, UH, SUMMIT OVER IN WINCHESTER ON NOVEMBER 18TH OVER AT NANDO UNIVERSITY.
UM, UH, HEARD, YOU KNOW, SOME GREAT SPEAKERS, UH, UH, THE SECRETARY OF COMMERCE, JUAN PABLO RA, UH, FOR THE STATE OF VIRGINIA FOR A LITTLE BIT MORE TIME.
EVERYTHING FROM, UM, UH, TEL TO, UM, A GUY WHO'S A, UH, ENTREPRENEUR, UH, AND DOES, UM, STARTUPS.
AND, UH, A LADY WHO'S PRESIDENT OF CARROLL CONSTRUCTION, UH, THAT WAS INTERESTING.
AND THEN FINALLY TOM BARKIN, WHO'S THE PRESIDENT AND CEO OF THE FEDERAL RESERVE BANK OF RICHMOND.
ANYWAY, THEY WERE ALL REALLY POSITIVE ABOUT 2026.
SO, UM, JUST WANTED TO SHARE THAT AND IT WAS INTERESTING AND INFORMATIVE.
YEAH, IT'S BEEN A GOOD, IT'S BEEN A GOOD TIME GETTING TO KNOW ALL OF YOU, LIZZIE.
YOU'RE DOING A GREAT JOB, HILLARY, THANK YOU FOR YOUR HELP TOO, KEEPING US ALL INFORMED.
BUT YEAH, REALLY APPRECIATE THAT.
IT'S BEEN A, IT'S BEEN A GOOD TIME ON, ON THE BOARD, COUPLE TUMULTUOUS YEARS, BUT BACK UP AND RUNNING NOW AND I THINK WE HEADED IN THE RIGHT DIRECTION.
I THINK PUTTING RETAIL STRATEGIES ON WAS PROBABLY ONE OF OUR BIGGEST WINS.
I THINK IT SOUNDS LIKE THEY'VE GOT SOME POSITIVE TRACTION AND TRYING TO GET RETAILERS AT LEAST TO SEE FRONT ROW FOR WHAT THE POTENTIAL COULD BE.
AND, UH, WE START TO SEE THINGS MOVE IN A POSITIVE DIRECTION THEN.
SO I, I FEEL HOPEFUL FOR THOSE.
I THINK THINGS WILL TURN OUT REALLY WELL.
THANK, UH, ANYTHING ELSE ANYBODY HAVE, DO WE NEED TO TAKE ACTION ON RETAIL STRATEGY SECOND YEAR OR IS THAT IN THE JANUARY MEETING? UM, TECHNICALLY THAT CONTRACT IS HELD BY TOWN COUNCIL, SO I'M NOT SURE THAT YOU ALL HAVE TO TAKE ACTION.
I BELIEVE THEY WILL HAVE TO AND ONLY IF THEY WANNA EXERCISE THE EXIT CLAUSE BECAUSE, UM, CAN WE VOTE ON A STATEMENT TO ENCOURAGE OR DISCOURAGE? I, I THINK YOU COULD.
I I, I DON'T KNOW ALL THOSE RULES, BUT I THINK YOU COULD.
I THOUGHT, I THOUGHT IT WAS VICE VERSA THAT WE HAD TO VOTE TO RENEW.
I THOUGHT WE TALKED ABOUT THAT LIKE A MEETING
DID I MISUNDERSTAND THAT? IT'S AUTO RENEWAL.
IT WAS PIGGYBACKED OFF STAFFORD COUNTY.
SO, WHICH THEIRS WAS WRITTEN AS AN AUTO RENEWAL.
SO AS FAR AS THE CONTRACT, THERE WOULD BE NO MODIFICATIONS TO THE CONTRACT.
SO YOU REALLY NEED NO ACTION FROM US.
WELL, I ENCOURAGE TO TOM, I THINK, I THINK YOU MAKE A GOOD POINT.
I THINK IF YOU'D LIKE TO, I THINK WE CERTAINLY COULD.
WELL, IT DEFINITELY TAKES, I MEAN, IT, IT'S A MINIMUM OF 18 MONTHS ON AVERAGE TO DO A TURNAROUND.
WHAT I'VE HEARD TODAY, SUBSTANTIATES THAT THEY'RE DOING, THEY'RE TAKING THE RIGHT STEPS.
THEY'RE MAKING THE RIGHT MOVES,
[01:30:01]
THEY SEEM LIKE THEY'VE GOT A GOOD BEAT ON THINGS.AND SO MY BIG THOUGHT WOULD BE I WOULD ENCOURAGE, YOU KNOW, OUR, OUR CONTINUING CONTINUING RELATIONSHIP WITH THEM.
SO WHETHER THAT'S A VOTER, WHATEVER, WELL I, I THINK THAT, I THINK COUNCIL SHOULD KNOW HOW WE FEEL ABOUT THE RETAIL STRATEGIES SECOND YEAR.
AND SO IF WHILE IT'S NOT BINDING, I THINK THAT, I THINK IT WOULD BE HELPFUL IF WE SAID THAT TO THEM IN, IN A VOTE.
UM, IF, IF YOU'LL ENTERTAIN THAT AS A MOTION, I WOULD, I WOULD STATE THAT WE CONTINUE OUR RELATIONSHIP AND RENEW THE CONTRACT.
UM, THAT I FEEL CONFIDENT THAT THEY'RE MOVING IN THE RIGHT STEPS AND I ENCOURAGE OUR SECOND YEAR.
SO, UM, ALL IN FAVOR OF THAT MOTION SIGNIFY BY SAYING AYE.
OPPOSED? ALRIGHT, SO I'LL TAKE THAT AS A UNANIMOUS.
ARE WE ABLE TO CAVEAT THAT WITH, WE HAD MENTIONED MEASURABLES AND ACTION ITEMS AND LAST MEETING WE TALKED ABOUT MAYBE QUARTERLY OR BIMONTHLY UPDATES.
ARE WE ABLE TO KIND OF I KNOW, I KNOW YOU TOOK THAT ON AS A RESPONSIBILITY.
I THINK, I THINK THAT'S GONNA BE ON ME, ROB.
I THINK, UM, I THINK GETTING THEM IN HERE WAS GREAT TO HAVE THEM PHYSICALLY IN THE ROOM TO TALK.
AND I THINK THAT NOW THAT THEY'VE DONE SO MUCH OF THE DATA AND HAVING THOSE INITIAL CONVERSATIONS, FOR LACK OF A BETTER WORD, UM, I THINK THAT NOW WE WILL HAVE BETTER VISIBILITY INTO KIND OF WHERE THINGS ARE ON THIS TIMELINE.
I MEAN 1919 OPPORTUNITIES IN THOSE TOP THREE CATEGORIES.
I I FELT LIKE THAT WAS A LOT SIX OF OF WHICH ARE LIKE, YEAH, WE'RE WAITING FOR THE RIGHT SPOT.
I MEAN THAT, THAT GOT ME EXCITED.
UM, BUT I'M GONNA, I'M TAKING THAT AS AN ACTION ITEM TO ENSURE THAT AT LEAST EVERY OTHER MONTH WE HAVE, UM, CURRENT WEARS A RED LIGHT, GREEN LIGHT, SOMETHING, SOME SORT OF SOMETHING.
WE CAN'T BE THE FIRST MUNICIPALITY THAT'S ASKED FOR THIS, SO I'M SURE THEY HAVE A MECHANISM FOR IT.
UM, BUT YES, I'M GONNA TAKE THAT BECAUSE I DON'T KNOW THAT WE CAN MAKE ANY SORT OF ADJUSTMENTS TO THE AGREEMENT SHOULD THE AGREEMENT CONTINUE.
UM, BUT WE CAN DO THAT INTERNALLY.
I WAS, I WAS IMPRESSED WITH THE PRESENTATION AS FAR AS NOT KNOWING WHAT WE WERE NOT KNOWING WHAT TO EXPECT WALKING IN HERE.
AND I'M GLAD THAT SOME PEOPLE MENTIONED SOME THINGS AS FAR AS ACTION ITEMS AND MEASURABLES.
YOU KNOW, I THINK WE DO NEED TO HOLD THEIR FEET TO THE FIRE AS FAR AS EXPECTATIONS FOR THEM, YOU KNOW, UM, SO, BUT YEAH, I APPRECIATE YOU ABSOLUTELY TAKING THAT ON MOVING FORWARD.
WELL, UH, THERE'S NOTHING ELSE.
MOTION COULD ADJOURN SECOND TO SECOND.
OPPOSED? I THINK FIRST GET THE LAST MOTION.