PowerPoint Presentation

Strategy Retreat – Downtown Glendale
Friday, April 2, 2021

• Overview of National Climate
• Downtown Glendale – Today
• Downtown Glendale Assessment
• The Current Downtown Strategy
• The Alternative Strategy
• Discussion
• Consensus and Next Steps
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Agenda

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Overview of the National Climate
• National Trends
– Current trends in brick & mortar retail have only accelerated since the 
pandemic
– E-commerce has averaged 15.4% annually in the past five years vs 3% 
annually in brick & mortar
– In 2020, there were a record 12,200+ permanent store closings in the U.S. 
(just counting ONLY major store chains)
– Projected that 1/3 of all malls will be shuttered

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Overview of the National Climate
• National Trends
– Nationally more than 159 million square feet of retail space became vacant 
in 2020 – the equivalent of 132 Arrowhead Towne Centers closing in just one 
year
• According to Investopedia, 46% of retail participants reported closing at least some of their 
establishments in 2018
• 37% of retail professionals claim they had to close their establishments due to poor location 
choice
– Average retail lease rates nationally dropped for the first time in recent 
memory
– Retail food purchases (dining out) has averaged 4% annual growth since 
2015

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Overview of the National Climate
• National Brick & Mortar Challenges
– Addressing declining demand for existing brick & mortar generally requires 
significant public subsidy and investment
– Prepare to be patient, reversing trends can be lengthy
– Prepare for mixed responses and support from the community on proposed 
changes
– Equity borrowing will be a major barrier for most independent and small 
business operators
– Moving to experiential retail generally will be capital intensive, something 
small and independent retailers may be unable to finance

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Overview of the National Climate
• National Brick & Mortar Challenges
– Older retail areas (like historic downtowns) will require significant and often 
costly capital investments in addition to expensive public infrastructure 
investments
• Crucial to make investments that actually have a measurable impact
– City widens sidewalks / another city painted art in street intersections / Glendale 
invested $$$ in alley improvements
– Small and independent retail operators are slow to adopt to new trends, 
utilize technology platforms, omnishopping etc. 
• 81% of consumers indicate they do online research before committing to a purchase
• 31% of shoppers indicate they conduct their shopping while flipping through their social 
media channels

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Over 180 non-residential 
properties
•
50% Retail/Restaurant
•
20% Office
•
10% Industrial 
•
18% Government Facilities
•
1% Religious/Fraternal/Clubs
•
1% vacant land for 
development
Downtown Glendale – Today

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City Facilities
Downtown Glendale – Today

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City Facilities
Residential
Downtown Glendale – Today

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City Facilities
Residential
Religious/Fraternal/Clubs
Downtown Glendale – Today

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City Facilities
Residential
Religious/Fraternal/Clubs
Industrial-based 
Commercial
Downtown Glendale – Today

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Vacant
City Facilities
Residential
Religious/Fraternal/Clubs
Industrial-based 
Commercial
Downtown Glendale – Today
Over the last 5 years, the vacancy 
rate in Downtown has risen from 
approximately 18.5% (2017) to more 
than 22% (current).

Downtown Glendale Today in Photos

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• Strengths
– Great connectivity (Grand Ave/59th Ave/Glendale Ave)
– Pedestrian-friendly design
– Available parking
– Sought-after authentic building stock with character
– Flexible zoning and permitting
– City-owned greenspace/assets
• Challenges
– High vacancy rates 
– Dated infrastructure and aged building stock
– Limited business operations/entertainment after 5PM
– Lack of year-round events/attraction
– Perceived as a place where only holiday activity takes place
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Downtown Glendale Assessment

• Current Strategy 
– Large events during limited time each year
• Total of 12 Event Nights in FY20
– Events structured around winter holiday season when there is a high 
number of competing events in the Valley
– Significant city staffing resources expended on limited number of large 
events produced by the city
– Costs not recaptured for transportation, public safety, parks, etc.
– Limited partnerships with private event producers
– Downtown Manager Services Contract 
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The Downtown Strategy

Break

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Pivot 
A dramatic change in policy, position or strategy.

• Prioritize building frequent, repeat visits to downtown
– Only high dollar, low volume, retailers can survive seeing a customer once a 
year
• Leverage a redeveloped amphitheater and adjacent parking 
garages to become a highly used performance venue
– Must be designed to accommodate a variety of live entertainment
– Reduce rental items such as trusses, lighting, sound, etc
– Have protection from the heat in summer months
– Accommodate a minimum of 1,200 attendees
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The Alternative Strategy – The Pivot

• Use live entertainment to attract a consistent, diverse customer 
base
– Consumer
– Focus on live music, theatrical, dance, movies, etc.
• Jazz, Blues, Country, Old-time Rock & Roll, Classical, Pop, Contemporary
• Christmas productions / plays / recitals / ballets / talent shows
• Comedy Shows 
• Cultural music / dance
• Create a family friendly and safe downtown utilizing permanent 
accent lighting
– Lighting footprint to include Catlin Court
– Trees, buildings, etc.
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The Alternative Strategy – The Pivot

• Work with downtown property owners to build a business plan 
that justifies owner’s investment and redevelopment
– Redevelopment is most likely to occur only when property owners are 
willing to modify their buildings to adapt to a new retail environment
• Help recruit new businesses with focus on food and beverage, 
experiential retail and cultural activities
• Work with downtown merchants to create experiential 
opportunities
– Vegan restaurant has live music
– Work with eateries to also provide live entertainment
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The Alternative Strategy – The Pivot

• Contract with Chamber to organize downtown merchants with a 
clear focus on marketing live events taking place in downtown
– Digital marketing impacts almost 50% of consumer purchase decisions
– Social media campaigns
– Printed collateral
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The Alternative Strategy – The Pivot

• Breakdown Current Budget
– Existing “status quo” budget
• Current strategy remains – “business” as usual
• Alternative Strategy Budget – The Pivot
– Anchored around recurring event programming/special events
– New FTE structure for approaching special events
– Grant program to encourage privately produced events
– Marketing
– Leverage Arts and Culture
– Transitional year budget
– Year-round Lighting
– Amphitheater/City Hall 
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How Do We Accomplish the Strategy

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How Do We Accomplish the Strategy
* Does not include costs incurred by Transportation, Public Safety, Sanitation, Parks or EMS
Current FY21 Special Events Budget
Glendale Glitters Spectacular Weekend
$124,914
Downtown in December
$56,805
Holiday Lights
$188,013
The Chocolate Experience
$50,000
Glitter & Glow
$106,001
Live! @ Murphy Park
$90,000
City Wide Special Events – 4FTE
$423,083
Total Special Event Division Budget*
$1,038,816

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How Do We Accomplish the Strategy
* Does not include costs incurred by Transportation, Public Safety, Sanitation, Parks or EMS
Live Programs
$312,000
Downtown Event Grant Program
$120,000
The Chocolate Experience with Outside Promoter
$20,000
Holiday Lighting
$100,000
Audio/Visual Lighting package
$100,000
City Wide Special Events
$100,000
City Wide Special Event Administration – 2 FTE
$215,000
City Wide Special Event Manager – 1 FTE
$88,000
Total Special Event Division Budget*
$1,055,000
Alternative Strategy Budget for Special Events – The Pivot

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How Do We Accomplish the Strategy
* Does not include costs incurred by Transportation, Public Safety, Sanitation, Parks or EMS
Downtown Events
$200,000
Downtown Event Grant Program
$120,000
The Chocolate Experience with Outside Promoter
$20,000
Permanent Lighting
$400,000
City Wide Special Event Administration
$215,000
City Wide Special Events
$100,000
Total Special Event Division Budget*
$1,055,000
Transition Budget for Special Events – The Pivot

Discussion

• Should Council provide consensus to move forward with the 
pivoted strategy for downtown:
– the alternative strategy budget will be included in the final budget 
for Council approval
– Staff will take the required steps to implement the outlined strategy
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Consensus and Next Steps