After icy relations and communication issues emerged between Starkville aldermen and the Golden Triangle Development LINK, it appears the city and county are ready to pass retail attraction and development duties to a new firm.
Starkville aldermen will broach a contract tasking Birmingham, Alabama-based Retail Strategies LLC with “pro-active retail recruitment, boots-on-the-ground property analysis” and overall research efforts for Starkville, city minutes show.
The contract, which lists Starkville, the Oktibbeha County Economic Development Authority and the Greater Starkville Development Partnership as its clients, would run from Tuesday to Feb. 19, 2019.
Starkville, OCEDA and the Partnership would pay a combined $37,500 for services until Sept. 30, the end of the fiscal year. The city’s portion would come from a $28,860 reimbursement the city received for professional services handled as the LINK explored developing the failed Innovation District industrial park.
For the period of Oct. 1 to Feb. 15, 2017, the city would pay $12,500 for the services. Yearly February-to-February pay periods follow, the contract shows. For services between 2017-2018, the city would pay $5,000, while OCEDA and the Partnership each would contribute $10,000 toward the $25,000 bill.
The total price for 2018-2019 jumps to $35,000, the contract states, with the city paying $15,000 and OCEDA and the Partnership again contributing $10,000 each.
As clients, the three entities may end the deal “for any reason by providing written notice six months prior to the date of termination,” the contract states.
Retail Strategies also agrees to a non-compete clause in Clay and Lowndes counties for any government agency or private business group.
In return, Retail Strategies agrees to “pro-active recruitment for targeted zones” and monthly updates on new activity to a person its clients designates as a primary point of contact. Those updates, the contract states, may come monthly or on an as-needed basis.
One market visit per calendar year is also included in the agreement. Retail Strategies also agrees to identify, evaluate and catalog “priority commercial properties for development, re-development and higher- and best-use opportunities” and perform “competitive analysis of existing shopping centers and retail corridors.”
Other services include market and retail analysis to identify retail leakage and surplus, peer market research, mapping and the identification of “at minimum 50 retail prospects to be targeted over” the life of the contract.
Retail Strategies landed on Starkville aldermen’s radar when aldermen scheduled a December meeting with the group and the LINK. About the same time, a rift became apparent between aldermen and the LINK after the Columbus-based economic development firm criticized the board’s unwillingness to discuss a then-pending $11 million investment by Academy Sports.
Ward 5 Alderman Scott Maynard confirmed his and other board members’ interest in Retail Strategies last month and said the December meeting, which was eventually canceled, was exploratory in nature only.
“Retail is what they do all day, every day. To us, it makes sense to explore it a little further. We only have a 30,000-foot overview of what they can do,” he said in January.
It is unknown if aldermen and Retail Strategies officials met after their first attempt at a meeting was canceled.
LINK officials were expected to bring a new industrial park proposal before aldermen last month, but a public information session on the project was canceled after officials said they were continuing due diligence efforts.
Retail recruitment for Starkville is one of the responsibilities of the LINK, according to a 2014 memo.
Specifically, it states the LINK will be the “single point of contact for all retail inquiries received by any community partners or entities” and “will participate in large, complex projects that require unique and innovative funding mechanisms,” such as tax increment financing (TIF) packages and new market credits.
In January 2014, the LINK announced it would no longer handle retail development for Columbus after councilmen discussed hiring Retail Strategies.
On Jan. 14 of that year, consultants advised the council about their organization’s services. A week later, a motion to hire the firm was tabled after Mayor Robert Smith said not discussing the idea with the LINK before proceeding would be a “slap in the face” to LINK Chief Executive Officer Joe Max Higgins and his organization.
The LINK cut retail ties with Columbus later that month, but the two entities renewed their relationship one month later.
Starkville aldermen will meet 5:30 p.m. Tuesday at City Hall.
Carl Smith covers Starkville and Oktibbeha County for The Dispatch. Follow him on Twitter @StarkDispatch
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