===== PDF PAGE 51 ===== [Extraction: OCR (rendered-page OCR)] CITY OF WEST CHICAGO CITY COUNCIL AGENDA ITEM SUMMARY ITEM TITLE: AGENDA ITEM NUMBER: IC m Retail & Restaurant Grant Extension 124 Main Street FILE NUMBER: Raised Bakery and Café COMMITTEE DATE: N/A Resolution 23-R-0036 COUNCIL AGENDA DATE: April 3, 2023 STAFF REVIEW: Tom Dabareiner, AICP SIGNATURE CITY ADMINISTRATOR REVIEW: Michael Guttman SIGNATURE ITEM SUMMARY: Raised Bakery & Café was awarded the City’s Retail-Restaurant Grant in an amount not to exceed $10,000 on December 16, 2019. The Grantee, Yolanda Peterson, began the build-out of the space at 124 Main Street in early 2020 but had some personal setbacks that stalled the project, resulting in the business not yet opening. Despite the timing setback, progress has resumed on the build-out of the restaurant and it is on track to open in the summer. Pursuant to the terms of the grant program, the Grantee is requesting an amendment to the terms to accommodate the new timeline for completion of the project and opening of Raised Bakery and Café. The intention was and is to use the build-out costs as the Qualifying Expenditures eligible for the 50% reimbursement, up to the maximum grant award of $10,000.00. As a reminder, Raised Bakery and Café will be a full-service retail bakery and café, offering a selection of menu items not currently available in the City’s downtown. In addition to providing quality baked goods and gourmet coffees, Raised Bakery and Café will initially offer a full breakfast and lunch menu focusing on lighter fare with an artisanal flair. Once established, Raised Bakery and Café plans to expand its business operations to catering services as well as incorporating a “small plates” concept for evening dining along with beer and wine service. With only minor updates and the exception of having to adjust menu pricing due to increased food costs, the previously submitted Business Plan is still appropriate. Staff continues to support this request, as Raised Bakery and Café will be a desirable retail business and café, which will generate additional traffic within the downtown area. The opening of Raised Bakery and Café will increase local tax revenues and support opportunities for new businesses, along with retention and expansion of existing businesses, in the downtown area. ACTIONS PROPOSED: Consideration of a Resolution authorizing the Mayor to execute a Retail-Restaurant Grant Program Agreement in an amount not to exceed $10,000.00 to Raised Bakery & Café for Qualifying Expenditures to the property at 124 Main Street. The Grantee’s request, Resolution and Grant Agreement are attached. COMMITTEE RECOMMENDATION: This item did not go to a Committee. ===== PDF PAGE 52 ===== [Extraction: OCR (rendered-page OCR)] Raised Bakery and Café Grant Requests The Retail-Restaurant Grant was approved by the City Council for Raised Bakery and Café at 124 Main Street on December 16, 2019. The project to build-out the property began with approval of the Facade Grant. The Facade Grant on behalf of Raised Bakery and Café for adding a side entrance and installing two awnings in the amount of $2,600.00 was approved on July 20, 2020. The permit for the new side door and awning was issued on August 5, 2020. Per the agreement, the grant agreement is valid for 12 months after the permit issuance. Due to the effects of the pandemic and unforeseen personal circumstances, the work was not able to be completed within the 12 months as outlined in the Fagade Grant Agreement and the business did not open within the 6 months required by the Retail & Restaurant Grant. This request is to extend the prior grant approvals with an updated cost for the awnings that were not completed, and adding an ADA door entrance on Main Street. The awning price has increased since the initial estimate was submitted more than three years ago. The need for the ADA entrance was identified after the side door was installed but could not provide the accommodation, which is why it was not included in the original grant approval. The outstanding items for this project will be completed within four months. Nothing besides increased food costs affect the previously submitted Business Plan. This may affect menu pricing but is not expected to affect any other aspect of operations. Submitted by Yolanda Peterson on 3/27/23 ===== PDF PAGE 53 ===== [Extraction: OCR (rendered-page OCR)] RESOLUTION NO. 2023-R-0036 A RESOLUTION AUTHORIZING THE MAYOR TO EXECUTE A DOWNTOWN RETAIL & RESTAURANT GRANT PROGRAM AGREEMENT WITH YOLANDA PETERSON (124 MAIN STREET) BE IT RESOLVED by the City Council of the City of West Chicago, in regular session assembled, that the Mayor is hereby authorized to execute a Downtown Retail & Restaurant Grant Program Agreement by and between Yolanda Peterson and the City of West Chicago, a copy of which is attached hereto and incorporated herein as Exhibit 1. APPROVED this day of April 2023. AYES: NAYS: ABSTAIN: ABSENT: Mayor Ruben Pineda ATTEST: Executive Office Manager Valeria Perez ===== PDF PAGE 54 ===== [Extraction: OCR (rendered-page OCR)] Exhibit 1 to Resolution 2023-R-0036 DOWNTOWN RETAIL & RESTAURANT GRANT PROGRAM AGREEMENT This DOWNTOWN RETAIL & RESTAURANT GRANT PROGRAM AGREEMENT (hereinafter referred to as the "AGREEMENT") is entered into this 3rd day of April, 2023, by and between the City of West Chicago, DuPage County, Illinois, an Illinois municipal corporation (hereinafter referred to as the "CITY") and Yolanda Peterson, (hereinafter referred to as the "GRANTEE") (the CITY and the GRANTEE are hereinafter collectively referred to as the "PARTIES"); WITNESSETH: WHEREAS, the GRANTEE represents the owner of certain real property located at 124 Main Street, in West Chicago, (hereinafter referred to as the "SUBJECT REALTY") and legally described on Exhibit "A", which is attached hereto and incorporated herein; and WHEREAS, the SUBJECT REALTY is located within the CITY’S Downtown Redevelopment Project Area (hereinafter referred to as the "AREA"), duly established pursuant to the Tax Increment Allocation Redevelopment Act (hereinafter referred to as the "ACT"), 65 ILCS 5/11-74.4-1 et seq.; and WHEREAS, the Corporate Authorities of the City of West Chicago established a Downtown TIF Area Retail & Restaurant Business Grant Program via Resolution 2013-R-0006 on January 21, 2013 (hereinafter referred to as the “PROGRAM”) whereby the CITY may make financial contributions to strengthen retail and restaurant business activity within the AREA; and WHEREAS, the GRANTEE desires to open a restaurant business at the SUBJECT REALTY and has applied, pursuant to the PROGRAM, for a financial contribution from the CITY toward the cost of Qualifying Expenditures, as defined in the PROGRAM and restated in this AGREEMENT, necessary to open the proposed business; and WHEREAS, the CITY previously approved the APPLICANT’s request for PROGRAM funding in an amount of up to $10,000.00 on December 16, 2019 but was not memorialized via a grant agreement; and WHEREAS, the APPLICANT has been unable to complete the work required to obtain occupancy of the SUBJECT REALTY and open the restaurant within the time frame specified in the PROGRAM but is committed to opening the restaurant within the next four months, and, as such, is requesting an extension of the prior approval, in accordance with the PROGRAM; and WHEREAS, the CITY has determined that it would further the achievement of the objectives of the AREA for the establishment of the proposed business at the SUBJECT REALTY and that the Qualifying Expenditures would be eligible for reimbursement from the CITY based on the terms and conditions of this AGREEMENT and the PROGRAM. NOW, THEREFORE, in consideration of the foregoing premises and in further consideration of the mutual covenants, conditions and agreements herein contained, the PARTIES hereto agree as follows: ARTICLE I INCORPORATION OF RECITALS The PARTIES hereby confirm and admit the truth and validity of the representations and recitations set forth in the foregoing recitals. The PARTIES further acknowledge that the same are 2 ===== PDF PAGE 55 ===== [Extraction: OCR (rendered-page OCR)] material to this AGREEMENT and are hereby incorporated into and made a part of this AGREEMENT as though they were fully set forth in this Article I and the same shall continue for so long as this AGREEMENT is of force and effect. ARTICLE II AUTHORITY This AGREEMENT is made and entered into by the PARTIES pursuant to and in accordance with the provisions of the ACT. ARTICLE III PURPOSE AND SCOPE In consideration of a grant from the CITY in an amount of up to Ten Thousand Dollars ($10,000.00) (the “GRANT”), GRANTEE agrees to use the SUBJECT REALTY as described in the Raised Bakery and Café Business Plan, attached as Exhibit “B”, (the “BUSINESS PLAN”) as a restaurant in accordance with this AGREEMENT (the “PROJECT”. ARTICLE IV LIMITATION ON NUMBER OF GRANT AWARDS PER LOCATION Only one GRANT will be awarded per business for each physical location and/or expansion project. GRANTEE shall not request a subsequent grant award at the SUBJECT REALTY for at least five (5) years. ARTICLE V QUALIFING EXPENDITURES The CITY shall reimburse GRANTEE for a portion of those PROJECT costs that are “Qualifying Expenditures” and which have actually been expended by GRANTEE: 1. Build out of tenant space; 2. Business start-up related media marketing and advertising; and 3. Other similar types of items as may be approved in the discretion of the Selection Committee, as defined in the PROGRAM. Items that are not eligible for reimbursement under this PROGRAM and GRANT include, but are not limited to: moving expenses; rent; signs; production equipment; payroll; day-to-day operational costs (e.g. utilities, taxes, maintenance, refuse collection, etc.); inventory/product; and City fees, including but not limited to, fees licenses, deposits or other charges. All Qualifying Expenditures must have actually been incurred between the original GRANT approval date through six (6) months after the date of approval of this AGREEMENT, and evidenced by an appropriate invoice or receipt satisfactorily indicating payment of the expenses. Documentation for Qualifying Expenditures, enabling payment to the GRANTEE must be submitted no later than seven (7) months after the date of approval of this AGREEMENT. ARTICLE VI OBLIGATIONS OF GRANTEE The GRANTEE shall, under the terms of this GRANT and AGREEMENT: 1. Perform and carry out in full tenant improvements in accordance with all applicable federal, state, county and City codes, laws, regulations and ordinance. ===== PDF PAGE 56 ===== [Extraction: OCR (rendered-page OCR)] 2. Provide written proof of ownership of the SUBJECT REALTY and/or a copy of an executed lease of at least a three (3) year duration for use of the first floor of SUBJECT REALTY prior to receiving funding under this GRANT. Open the business within six (6) months from the date of approval of this AGREEMENT. 4. Notify the Director of Community Development, or his designee, the date the business opens or re-opens to the public at the SUBJECT REALTY. 5. Submit to the Director of Community Development, or his designee, copies of all its monthly sales tax returns filed within the three (3) year period following the date of opening or commencement of the growth initiative/expansion of the business. Ww ARTICLE VII CONDITIONS OF PAYMENT Upon the GRANTEE'S completion of the PROJECT on the SUBJECT REALTY as provided hereinabove, the GRANTEE shall give notice of completion and/or opening to the CITY, and shall provide the CITY with all receipts, sworn contractor statements and lien waivers (hereinafter referred to as the “DOCUMENTATION” showing that all persons who have done work, or have furnished materials with respect to the PROJECT, and might be entitled to a lien therefore under any laws of the State of Illinois, have been paid in full for their work and are no longer entitled to such lien. For a PROJECT where a building permit is required, the CITY shall conduct a final inspection of the permitted work, and if the permitted work is found to be in full compliance with the terms of this AGREEMENT and all applicable codes, ordinances, rules, regulations, permits and conditions as provided hereinabove, the CITY shall issue a passing final inspection report approving the permitted work. The City Council, following the issuance of said final inspection report and receipt of all of the required DOCUMENTATION, shall authorize payment of the CITY'S financial contribution toward the PROJECT pursuant to the PROGRAM in an amount equal to the lesser of Ten Thousand Dollars and zero cents ($10,000.00), or one half of the amount actually paid by the GRANTEE for the PROJECT, as indicated on the DOCUMENTATION submitted to the CITY, whichever is less. ARTICLE VIII TIME Time is of the essence under this AGREEMENT and all time limits set forth herein shall be mandatory and shall not be waived except by a lawfully authorized and executed written waiver amendment to this AGREEMENT by the PARTIES excusing such timely performance. ARTICLE IX DEFAULT In the event GRANTEE shall default in any of the covenants, terms, or conditions of this AGREEMENT, the CITY shall provide GRANTEE with a ten (10) day written notice to cure. If GRANTEE fails to cure the default within the ten (10) day period, the CITY may immediately terminate this AGREEMENT and all rights of Guarantee under this AGREEMENT, and may seek any other remedy available to it against GRANTEE. Failure of GRANTEE to abide by the terms and conditions of the PROGRAM or this AGREEMENT may result in forfeiture of the funding of this GRANT, at the discretion of the Selection Committee, as provided for in the PROGRAM. ===== PDF PAGE 57 ===== [Extraction: OCR (rendered-page OCR)] ARTICLE X AMENDMENTS This AGREEMENT sets forth all the promises, inducements, agreements, conditions and undertakings between the GRANTEE and the CITY relative to the PROJECT identified in this AGREEMENT, and there shall be no promises, agreements, conditions or understandings, either oral or written, express or implied, between them, other than as herein set forth. No subsequent alteration, amendment, change or addition to this AGREEMENT shall be binding upon the PARTIES hereto unless authorized in accordance with the law and reduced in writing and signed by the PARTIES. However, whenever under the provisions of this AGREEMENT any notice or consent of the CITY or the GRANTEE is required, or the CITY or the GRANTEE is required to agree or to take some action at the request of the other, such approval or such consent of such request shall be given for the CITY, unless otherwise provided herein, by the Mayor or his designee and for the GRANTEE by the GRANTEE or any agent as the GRANTEE so authorizes. ARTICLE XI NOTICES All notices and requests required pursuant to this AGREEMENT shall be sent by certified mail as follows: To the GRANTEE: Yolanda Peterson 124 Main Street West Chicago, IL 60185 To the CITY: City of West Chicago 475 Main Street West Chicago, IL 60185 or at such other addresses as either of the PARTIES may indicate in writing to the other either by personal delivery or by certified or registered mail, return receipt requested, with proof of delivery thereof. ARTICLE XII GOVERNING LAWS This AGREEMENT shall be construed and enforced in accordance with the laws of the State of Illinois. ARTICLE XIII COUNTERPARTS This AGREEMENT may be executed in multiple counterparts, each of which shall be deemed to be and shall constitute one and the same instrument. ===== PDF PAGE 58 ===== [Extraction: OCR (rendered-page OCR)] IN WITNESS WHEREOF, the PARTIES hereto have set their hands and seals on the date first above written. CITY OF WEST CHICAGO, an Illinois Municipal Corporation: By: Mayor Ruben Pineda ATTEST: Executive Office Manager Valeria Perez GRANTEE: By: Yolanda Peterson ===== PDF PAGE 59 ===== [Extraction: OCR (rendered-page OCR)] STATE OF ILLINOIS ) ) SS. COUNTY OF DUPAGE) I, the undersigned, a Notary Public, in and for said County, in the State aforesaid, DO HEREBY CERTIFY that Ruben Pineda, Mayor of the City of West Chicago, and Nancy M. Smith, City Clerk, personally known to me to be the same persons whose names are set forth on the foregoing instrument as such Mayor and City Clerk respectively appeared before me this day in person and acknowledged that they signed and delivered the said instrument as their own free and voluntary act and as the free and voluntary act of said City, for the uses and purposes therein set forth; and the said City Clerk then and there acknowledged that she, as custodian of the corporate seal of said City, did affix the corporate seal of said City to said instrument, as her own free and voluntary act and as the free and voluntary act of said City, for the uses and purposes therein set forth. GIVEN under my hand and Notarial Seal this day of , 2023. Notary Public ===== PDF PAGE 60 ===== [Extraction: OCR (rendered-page OCR)] STATE OF ILLINOIS ) ) SS. COUNTY OF DU PAGE ) I, the undersigned, a Notary Public, in and for said County, in the State aforesaid, DO HEREBY CERTIFY that Yolanda Peterson, personally known to me to be the same person whose name is set forth on the foregoing instrument appeared before me this day in person and acknowledged that he signed and delivered the said instrument as his own free and voluntary act for the uses and purposes therein set forth. GIVEN under my hand and Notarial Seal this day of , 2023. Notary Public ===== PDF PAGE 61 ===== [Extraction: OCR (rendered-page OCR)] EXHIBIT A Subject Realty Legal Description The northerly 25.75 feet in width of Lot 5 of the Warehouse Block, as shown on Plat of the Town of Junction, as established by Decree of the Circuit Court of DuPage County, Illinois, Chancery Case No. 3904, in the Northeast quarter of the Northeast quarter of Section 9, Township 39 North, Range 9, East of the Third Principal Meridian in DuPage County, Illinois. Permanent Index Number (PIN): 04-09-204-010 Property Address: 124 Main Street, West Chicago, IL 60185 ===== PDF PAGE 62 ===== [Extraction: OCR (rendered-page OCR)] EXHIBITB （Insert BusinessPLAN here) 10 ===== PDF PAGE 63 ===== [Extraction: OCR (rendered-page OCR)] Exhibit B Raised Bakery and Cafe Business Plan 124 Main St. West Chicago, IL 60185 (630) 333-0574 ===== PDF PAGE 64 ===== [Extraction: OCR (rendered-page OCR)] 1, D 4. RAISED Bakery & Café Business Plan Description of the business and industry a. Raised Bakery and Cafe’ b. Industry and its history Features and advantages of Raised product a. b. c Description Competitive advantage Future potential Market research and analysis a. b. C Definition of your customers and markets Market size and trends Competition Estimated market share and sales a. meoaos Market plan Market strategy Pricing Sales tactics Service and warranty policies Adverting, public relations and promotions Design and development plans a. b. c. Development status and tasks Difficulties and risks Costs Operations plan a. b. c. d. Business location Facilities and improvements Strategy and plans Labor force . Management team a. b. Key management and personnel Management assistance and training needs ===== PDF PAGE 65 ===== [Extraction: OCR (rendered-page OCR)] 8. Overall schedule a. Timing of critical activities before opening b. Timing of critical activities after opening 9. Critical risks and problems a. Price cutting by competitors b. Unfavorable industry-wide trends 10. Operating costs overestimates a. Low sales b. Difficulties obtaining inventory or supplies c. Difficult in obtaining credit d. Lack of trained labor 11. Financial plan a. Profit and loss forecasts b. Cash flow projections c. Pro forma balance sheet ===== PDF PAGE 66 ===== [Extraction: OCR (rendered-page OCR)] Raised Bakery & Café 124 Main St West Chicago, IL 630-333-0547 ambanS@aol.com Mission Statement: The mission of Raised Bakery & Café is based on the dream of “raising up community in West Chicago,” wherein the bakery becomes a hub and catalyst for residents to connect, communicate and celebrate the diversity and vibrancy of their city around quality food. 1. Description of the Raised Bakery and Cafe’. (From this point referenced as “Raised”) a. Raised Bakery And Cafe’ Business As a native West-Chicagoan, owner and baker Yolanda Peterson has a heart for the city that Raised her, a passion for developing and baking delicious Raised bakery goods and an immeasurable gratitude for the God who Raised her to a purposeful life. At the intersection of these life essentials, a seed began to form for how Yolanda could be part of revitalizing her beloved West Chicago’s downtown area. The foundation had already been laid with the city’s updating of the streetscape on Main St. This first step helped her to envision the possibility of establishing a unique place where good food could be easily shared with both old and new friends in an atmosphere that intentionally cultivated familial bonds within the West Chicago community. The purchase of 124 Main St. initiated the fulfillment of that dream. b. The Industry and its history Raised identifies itself in the fast casual sector. What is it, anyway? Fast casual sits between the more traditional full-service restaurants and the typical fast food establishments seen in every town and on every highway across the country. Like fast food, fast casual is typically order-at-the- counter. The atmosphere is generally a little more upscale and often includes real cutlery and plates. Food is usually prepared on site, as opposed to the assembly line, mass-produced food items popularized by chains like McDonald’s. The food is considered to be of a higher-quality and is often locally sourced and has a wide selection of healthy options. However, lower operating costs are an advantage with a fast casual restaurant helping to increase profitability ===== PDF PAGE 67 ===== [Extraction: OCR (rendered-page OCR)] 2. Features and advantages of the product a. Description Raised will be centered on artisanal bakery items made in house. These products will include, but not be limited to, several varieties of breads, pastries and cakes. In addition, the café will have a lunch menu consisting of daily made from scratch soups, salads and sandwiches. Dinner will be on a “Dinner to Go” option for the fast paced, active lives of families in the West Chicago and neighboring communities. Raised will be in partner with local farmers to use sustainable organic ingredients based on seasonal and locally-grown products. Beverage offerings will include specialty coffees, sourced from local, small batch roasters. All complementing the bakery items, with wines and beers available in the evenings. These will set Raised apart in a time when several generations are becoming more health conscious, while still looking for faster food choices that compliment a fast-paced lifestyle. b. Competitive Advantage While some of these establishments may offer breakfast, lunch or dinner options; Raised’s convenient location, upbeat environment and creative menu make it stand apart. It is therefore apparent that Raised is a unique offering in both product and space. Raised expects to be an asset to the revitalization of our downtown area as it will bring increased foot traffic to Main St. that will enhance the few businesses that currently reside there, as well as make the currently vacant buildings more appealing to future entrepreneurs. Raised emphasis on non- Hispanic fare, with a smattering of Mexican offerings, stands out in a community dominated — and potentially overpopulated — with Mexican restaurants. And while approximately 62% of West Chicago’s population is Latino/Latina, Raised Bakery and Café offers menu items for those seeking something other than Mexican fare while respecting the communities Hispanic by including uniquely traditional Mexican items as part of its offerings. c. Future Potential Raised will be looking to expand its business through the addition of catering services targeted to area businesses, schools, organizations and the community. With this, it will create more economic growth and employment opportunities. Raised also looks to open for evening dining, which will include the sale of beer and wine to generate additional “gravitational pull” to bring more of our community back to our downtown. Raised will offer a menu unique to our downtown by offering a “small plates” concept. ===== PDF PAGE 68 ===== [Extraction: OCR (rendered-page OCR)] 3. Market Research and analysis a. Definition of Raised customers and markets Raised he plan is to become a magnet for West Chicagoans, utilizing its convenient walkable location as a meeting place. Its location to the city’s nearby neighborhoods, its location next to the landscaped staircase leading to the city’s large parking lot, the Prairie Path bike trail, a theatre, the library, the West Chicago Railroad Museum, the train station, and city hall, all ensure a diversity of clientele that is expected to include families, bikers/runners/walkers, theatre enthusiasts, library patrons, tourists groups, and City Hall employees and customers. Currently, the West Chicago downtown is without such a place and has only a handful of fast food restaurants on the outskirts. With a population of over 27,000, this translates into tapping into an underserved market share. The ideal customer for Raised is the returning customer that you know by name, and who enjoys a hot cup of coffee and a warm chat while waiting for their freshly made order. They know and appreciate the difference between store bought and artisan goods. They value the extra little cost to enjoy fresh and healthier food options that also support their community of West Chicago. The ideal customers are community members that enjoy the walkability and accessibility of the café and its proximity to everything. In speaking with several residence and business community members, while observing dining patterns, it is very evident that the community is seeking and welcoming local options to fulfill their desire for diversity in dining options. b. Market size and trends The primary, secondary, and tertiary markets for restaurants are generally considered to be one (1) mile, three (3) miles, and five (miles) respectively, from the establishment. While there are exceptions to this rule, for example in rural areas or in the case of “destination” restaurants, these distances are commonly accepted by site selectors as accurate representations. At | mile — the restaurant’s primary trade area - Raised has access to a residential (largely evening) population of 12,601 and a daytime employment population of 5,253. These numbers compare favorably to other similar establishments in the western suburbs. Honeymilk Café in Warrenville has evening and daytime populations of 8,671 and 1,898 respectively. Café K’Tizo in Wheaton draws from 9,416 nearby residents during the evening and 6,349 people during the day. And Café Zupas in Bloomingdale has 5,995 residents within | mile and 5,903 employees at the same distance. So, within its primary trade area, Raised appears to have a larger population from which to draw patrons than several similar area ===== PDF PAGE 69 ===== [Extraction: OCR (rendered-page OCR)] operations. However, this advantage is mitigated at the level of the secondary (3- mile) and tertiary (5-mile) trade areas cf. Appendix C). Within the primary trade area, Raised enjoys a Median Household Income (MHI) of just over $78,000. While this falls short of income levels for Café K’Tizo ($117,266) and Café Zupas ($90,640), it is more than sufficient to support a bakery/café operation, particularly when paired with the aforementioned population density. At a 3-mile radius, MHI figures for all four restaurants examined levels out, with a range of $82,817 (Café K’Tizo) to $88,827 (Café Zupas). Spending habits for those living within one mile of Raised show expenditures allocated to dining out to be just over $13 million. This exceeds the total spending on food away from the home at all restaurants being compared, except for Café K’Tizo ($18.3 million). At 3 and 5 miles, these figures shift in favor of the neighboring comps, but remain healthy and demonstrate a significant amount of potential demand from which Raised can draw. Psychographic data also indicate the existence of demand for the type of product and service provided by Raised, based on the unique spending habits of area residents. Psychographics is the qualitative methodology of studying consumers based on psychological characteristics and traits such as values, desires, goals. interests. and lifestyle choices. Psychographics in marketing focus on understanding the consumer's emotions and values, so products can be marketed more accurately. Psychographic analysis in this instance was conducted using ESRI’s Business Analysis Online (BAO) software. Within its primary trade area, Raised Bakery and Café’s draws from a populations consisting most significantly (23.0%) of what BAO refers to as Urban Villages. These households profile as multicultural, multi-generational, and multilingual. They are younger consumers, with a median age of 34, as compared to the nation figure of 38.2. As a younger consumer group, their spending on food outside the home is 95% of the national average. which generates healthy demand for restaurant dining options. At the secondary and tertiary levels. the consumer population sees a shift towards households identified as Savvy Suburbanites and Soccer Moms respectively. Both of these psychographic cohorts retain much higher than average incomes and, as a group. spend between 28% and 52% more than the average American on dining ===== PDF PAGE 70 ===== [Extraction: OCR (rendered-page OCR)] out. All of this bodes well for the long-term success of Raised Bakery and Café. For more information on these psychographic profiles. please see Appendix D. As a restaurant format, the fast-casual sector’s growth continues at 7%. Fast- casual chains continued to drive and build sales in 2018, and the segment’s unit growth far outpaced the rest of the industry. In fact, it made up the vast majority of the industry’s unit growth as fast-casual operators expanded into more markets. That unit-count growth continued last year, even if it slowed modestly when compared to previous years. And the sector continued to dominate the industry’s total unit development. To wit, the 500 largest chains as a whole added 1,569 restaurants in 2018. The fast-casual sector alone added more than 1,200 locations. That means almost four out of every five restaurants opened by Top 500 chains in 2018 was a fast-casual concept.* c. Competition Our Competition: While there are currently three bakeries in the city, all of them offer mainly Hispanic-focused products, thus appealing to a more-narrow customer base. The local competition for Raised would be: Egg Yolk Cafe McDonald’s Dunkin’ Donuts Kindred Coffee The Bunker Accounting for these competitive conditions, Raised is poised to grab a share of the restaurant market within our downtown. What makes Raised different is its balance of a better quality product and a comfortable, yet convenient atmosphere. In addition to its fast-casual format, Raised will also offer a full breakfast and lunch menu. At present, only Egg Yolk Café and McDonald’s provide both meals, with the former lacking the convenience of fast-casual service and the latter — as a QSR — offering significantly lower quality fare. 4. Estimated market share and sales a. Marketing Plan Raised will focus on developing loyal client relationships by offering baked goods, meals and services based on the customer’s need for time-saving convenience, superior quality and taste, selection recommendation support, and nutritional value. In view of the expected clientele and lack of any comparable competition, Raised will use a marketing plan initially focused on neighborhood- ===== PDF PAGE 71 ===== [Extraction: OCR (rendered-page OCR)] targeted invitations to tasting nights before the café’s retail space opens. In addition, flyers will be distributed at with an invitation to key community partners. Social Media blitzes will be sent on a regular basis as well as traditional marketing components. Good old word of mouth will also be a crucial marketing facet. b. Market Strategy The initial marketing will be via Facebook , Twitter, and other social media platforms, along with seeking optimal search engine strategies. Keeping weekly if not daily updated web presence and splashes of new specials or menu items. Providing information on Raised location, menu and hours. c. Pricing Pricing will be done on a cost plus % industry practice. Raised will use its software to maintain the pricing and take advantage of item specials by suppliers. d. Sales tactics Raised will use Social media as a key component of its tactics along with conventional flyers and a loyalty program. Customer relations: so a happy customer is a great tool e. Service and warranty policy Raised will do its best to address customer complaints by offering to make product again, offer a refund and offer a gift card to show the customer Raised is willing to make every effort to resolve the complaint. f. Advertising, public relations, and promotions Raised will use some conventional methods to advertise; such as flyers or mailings, but the majority of our advertising will be via Social media. Raised will participate in City events and offer product for special events (i.e. Frosty Fest, Walk With the Mayor, Street Food Festival, Blooming Fest, Historical Society events, and Theatre events). Raised will take into consideration possible promotions as needed. 5. Design and development plans a. Development status and tasks: Raised will be remodeling and updating the interior and exterior in a phase process. These updates will focus on getting a new clean. upbeat look, updating the kitchen, and remodeling the basement to be. ===== PDF PAGE 72 ===== [Extraction: OCR (rendered-page OCR)] utilized as a commercial kitchen. b. Difficulties and risks The difficulties for Raised would be in the build out of the restaurant and potential setbacks of construction or occupancy issues. Partnering with knowledgeable, cost conscience efficient contractors and suppliers to offset delays. Focusing on these potential risks by taking the proper steps to eliminate or minimize them by having the right team is important. c. Costs Cash flow can always be an issue for start-ups or any business. By keeping a close eye on projected expenses and making concessions where needed can help to minimize this concern. Staying within proposed project costs by looking for alternatives. 6. Operations plan a. Business location Raised will be located at 124 Main St. the center of our downtown. b. Facilities and improvements Raised is a 1700+ sq. ft. building. I am looking to update and expand the facility by creating a commercial kitchen in the basement. Updating the existing kitchen and bathrooms. The strategy is to do the improvements to obtain occupancy and expansion for basement build out in 3-6 months of opening. Allowing for capital and cash flow to increase. c. Strategy and plans Raised will focus on maintaining a strong community presence in the downtown by using its central location to attract more foot traffic from nearby neighborhoods. Using the potential for outdoor seating to draw potential customers that drive through our downtown daily. d. Labor Force Raised will be looking to employ a staff of 12- 15. In the interview process management will be looking for experienced staff in key positions to train and equip for various positions. We will be looking for hires with food service ===== PDF PAGE 73 ===== [Extraction: OCR (rendered-page OCR)] experience, food handlers license and those with little or no experience but with a willingness to learn. 7. Management team a. Key management and personnel As a graduate of The French Pastry School of Chicago, Owner Yolanda Peterson will act as Executive Pastry Chef, in charge of creating the signature pastries of the bakery. Her dedication to producing quality and innovative baked goods has been solidified in her years of working as head pastry chef in local cafes. Her business acumen, coming from her experience as Vice President of American Banner & Signs, will enable her to fulfill the Executive role of President as she makes the decisions on menu, personnel and site maintenance. The positions of both Head Chef and Manager will require previous experience and are currently being soughtThe management team is expected to include a full-time manager and a full-time head chef. The bakery café will need at minimum 8- 10 part-time employees, filling the roles of assistant bakers, cooks, front of house personnel and bussers. b. Management assistance and training needs The success of a kitchen is how you treat your team and others. Raised will do its best to train properly, encourage often, guide when needed and train, train, train. Raised will create an environment where team meetings are held quarterly to mitigate any issues that may need to be addressed. 8. Overall schedule a. Timing of critical activities before opening Apply for Restaurant Grant: 11/18/19 Architect Plans: 12/14/19 Apply for permits: 12/16/19 Begin Build out: 1/2/2020 Begin interviewing for staff: 1/15/2020 Begin training: 1/25/2020 ===== PDF PAGE 74 ===== [Extraction: OCR (rendered-page OCR)] b. Inspection Inspection Get occupancy approval Soft Open/open house: 4/10-11/2020 Grand opening: 4/14/2020 Timing of critical activities before opening Read the customer reviews from soft openings/open houses and work on comments or product that needs attention. Retrain in areas of weakness. Check the supplies. 9. Critical risks and problems a. Price cutting by competitors Raised will be working on costing of ALL items to manage and stay inline with trends. Using software to show where costs or items can be too expensive or not selling. This will enable us to keep our pricing. Unfavorable industry-wide trends Food is a “Go To” for most of us. To celebrate life, success, to bring some joy to sadness to connect with friends family colleagues. The Fast casual industry is a model that fits so many of our fast paced lives. But it can also be a place where people can connect in an environment that is friendly, casual, upbeat and serves fantastic healthy food. Operating costs overestimates By carefully observing trends in the business day, management will be able to schedule accordingly to manage labor costs. Keeping an eye on inventories through software available will keep food spoilage costs down. Being energy efficient. . Low sales Be creative. Offer incentives, specials to attract customers. . Difficulties in obtaining inventory or supplies A remedy to this would be to have more than a few suppliers, whether it be for parts or products. Also, utilizing the World Wide Web. ===== PDF PAGE 75 ===== [Extraction: OCR (rendered-page OCR)] f. Difficulties in obtaining credit Raised hopes to keep a portion of sale in reserve to help offset possible credit issues, and by keeping debt to a minimal. g. Lack of trained labor Raised management hopes to do a great job of interviewing candidates. If it is a matter of more training Raised will make every effort to put more time into its staff. 10. Financial Plan (see attached documents) a. Profit and loss forecast- 3 years b. Cash flow projection- 3 years c. Pro forma balance sheet d. At start-up, semi-annually in first year, end of 3 years ===== PDF PAGE 76 ===== [Extraction: OCR (rendered-page OCR)] Appendix A Menu ===== PDF PAGE 77 ===== [Extraction: OCR (rendered-page OCR)] Breakfast: All breakfast are served with house roasted potatoes. Fruit is $1.00 upgrade Biscuit and Eggs: Made from scratch biscuits, smoked bacon and Eggs Breakfast BLT: Smoked bacon, lettuce, sliced tomato and 2 eggs with house dressing on sourdough bread. Veggie Sandwich: Smoked Gouda, spinach and eggs on Homemade English muffins. Hold The Bread: Smoked bacon, 2 eggs, served over mixed greens and house dressing. Ham and Cheese Croissant: Ham and Gruyere cheese served ona flaky croissant. Biscuit Basket: Homemade buttermilk biscuits served With butter and house made seasonal jam. Keto Bowl: Steel Cut Oatmeal: Janie’s Mill Steel Cut Oats served with Cinnamon, fruit and pecans. Yogurt Parfait: Greek yogurt served with our house made Granola and fresh fruit. Raised Bakery and Café 7.50 7.50 7.00 7.00 7.50 7.00 7.00 4.00 3.00 Breakfast served 7 — 11 am Tuesday — Friday Sat. Sun 7-12 pm Sandwiches Sandwiches served with choice of kettle chips or mixed greens. Chicken Pesto 9.00 Roasted chicken, cheddar, mozzarella, pesto sauce on a toasted ciabatta roll drizzled With honey. Roast Beef and Cheese 9.50 Thinly sliced roast beef, With a horseradish cheddar, greens aioli on pretzel bread. Tavern Ham Sandwich: 8.00 Sliced tavern ham with white cheddar on a bed of greens with spicy mustard on wheat bread. Raised Grilled Cheese 7.00 Smoked cheddar, Gouda, White cheddar, Parmesan and House bacon jam served on sourdough bread. Turkey Bacon Avocado: 8.50 Sliced turkey, smoked bacon, avocado mixed greens, tomato served on honey wheat bread. Raised Bakery and Café ===== PDF PAGE 78 ===== [Extraction: OCR (rendered-page OCR)] Reloads: Kiddos Add Chicken $1.50 Add Avocado $1.00 Kids Grilled Cheese 5.00 House Salad 9.00 Working on ingredients for salad Fruit and Chesee Southwest Salad 9.50 Chopped Salad: 8.00 Roast Beef Salad 7.00 Seasonal Salad: 8.50 Soups Our daily made from scratch soups Bowl 4.00 Quart 8.00 ===== PDF PAGE 79 ===== [Extraction: OCR (rendered-page OCR)] Appendix B Financial Data and Pro Forma ===== PDF PAGE 80 ===== [Extraction: OCR (rendered-page OCR)] Raised Cafe and Bakery Profit and Loss Year One Year Two Year Three 1.03 4.03 Restaurant Sales 486,183.00 500,768.49 515,791.54 Catering Sales 13,000.00 26,780.00 27,583.40 Total Revenues 499,183.00 527,548.49 543,374.94 Total Cost of Sales 129,787.58 137,162.61 141,277.49 Gross Profit 369,395.42 390,385.88 402,097.46 Expenses Salary expenses 196,429.00 207,590.85 213,818.57 Payroll expenses 13,750.00 14,531.33 14,967.27 Bank Charges 600.00 618.00 636.54 Supplies (office and operating) 1,200.00 1,236.00 1,273.08 Repairs and maintenance 3,600.00 3,708.00 3,819.24 Advertising 4,862.00 5,007.86 5,158.10 Car, delivery and travel 0.00 0.00 0.00 Accounting and legal 3,000.00 3,090.00 3,182.70 Telephone/Internet 1,800.00 1,854.00 1,909.62 Utilities 18,000.00 18,540.00 19,096.20 Insurance 1,512.00 1,557.36 1,604.08 Rent 12,000.00 12,360.00 12,730.80 Depreciation 9,857.14 9,857.15 9,857.14 Kitchen Supplies 19,447.00 20,030.41 20,631.32 Restaurant Supplies 14,586.00 15,023.58 15,474.29 Credit Card Charges 10,939.00 11,267.17 11,605.19 Web Maintenance 3,600.00 3,708.00 3,819.24 Sub-total Expenses 315,182.14 329,979.71 339,583.37 Reserve for Contingencies 15,000.00 15,000.00 15,000.00 Total Expenses 330,182.14 344,979.71 354,583.37 Net Income 39,213.28 45,406.18 47,514.09 ===== PDF PAGE 81 ===== [Extraction: OCR (rendered-page OCR)] Profit and Loss Projection (12 Months) RAISED Cafe and Bakery ¢/@fese i ese faertest es esl el e/a Si él @izdl élel Fi zi zi ef 2s#7¢ s s s ss Ry s s = = s Ry Ss ES Revenue (Sales) peacoat Restaurant Sales $30,477 | $20477 | 542.525 | $2523 |s42.628| sa. 623] 42,523 | $42,523 2.825 842.829 [$42,523 |$42,523| 486,183] Catering Sales eee | | _| $1,444 | $1,444 | $1,444 | $1,444 $1,444 | $1,444 | $1,444 | $1,444 | $1,444 | 13,000 Total Revenue (Sales) | 30,477 30,477| 42.523] 43,967| 43,967| 43,967| 43,967| 43,967| 43,967| 43,967/ 43.9671 43,967 499,184 Cost of Sales Total Cost of Sales |_7,924| 7,924] 11,056] 11,43 11,432) 11,43 11,432) 11,432| 11,432] 11,432] 1: 32| 11,432] 11,432] 11,432| 129,788) posto ee Gross Profit | 22,553, 22,553) 31,467! 32,535| 3 eee ees ee 32,535| 32,535| 32,535, 32,535) 32,535, 32,535] 369,396. Expenses — Salary expenses | 16,369] 16,369] 16,369] 16,369] 16,369] 16 369| 16,369] 16,369] 16,369 Payroll expenses | 1,146] 1,146) 1,146] 1,146 1,146] 1,146) 1,146] 1,146] 1,146 Bank Charges | 50 50 50 50 50 50 Supplies (office and operatin 100 100 100 100 100] 100 Repairs and maintenance 300 300 300 300 300 300 Advertising 405 405 405 405 405] 405 Car, delivery and travel 0 0 0 of ) Accounting and legal_ 250 250 250 250 250] 250 Telephone/internet 150 150 150 150| _—-150 150 Utilities 1,500] 1,500] 1,500} 1,500| 1,500} 1,500} 1,500] 1,500 Insurance 126 126 126 126 126 126 126 126 1,000 1,000| 1,000} 1,000} 1,000} 1,000 reciation 821 821 821 821 821 821 Kitchen Supplies [1,621 1,621] 1,621] 1,621] 1,621] 1,621 Restaurant Supplies | 1,216 1,216] 1,216) 1,216] 1,216] 1,216 Credit Card Charges 912 912 912 912/ 912 912 912 912 912] 10,939 Web Maintenance 300 300 300 300 300 300 300 300 300 3,600 Sub-total Expenses 26,265 26,265} 26,265] 26,265] 26,265] 26,265| 26,265] 26,265| 26,265| 26,265} 315,182 Reserve for Contingencies 1250 1250] 1250 1250 1250 1250 1250|__ 1250 1250] 15,000 Total Expenses 27,515 27,515| 27,515| 27,515 27,515] 27,515! 27,515| 27,515| 27,515] 27,515| 330,182 | lt 5,020] 5,020} 5,020 39,214 1,146] 1,146] 1,146 13,750 50 50 50 600 100 100 100 1,200 300 300 300 3,600 405 405 405 4,862 0 0 0 250 250 250 3,000 150 150 150 1,800 1,500} 1,500} 1,500 18,000 126 126 126 1,512 1,000} 1,000] 1,000 12,000 821 821 821 9,857 1,621] 1,621] 1,621 19,447 1,216] 1,216] 1,216 14,586 16,369| 16,369 ERO 196,429 EI 4 Net Income -4,962 ===== PDF PAGE 82 ===== [Extraction: OCR (rendered-page OCR)] Revenue and Cost of Sales Projection (12 Months) RAISED Cafe and Bakery ® eS aS es ee ro < = =< cS = tsa es ee ee : 04 $14 & : ge? Professional Pride 10.1% Fale Valu Dilferenc “Bs Se $35,000 - $49,999 _ | 9.4% [90 | : i ; ‘| $149 [21 | | = Sa A ,) e THE SCIENCE OF WHERE ———————————— — ( — — ===== PDF PAGE 100 ===== [Extraction: OCR (rendered-page OCR)] TA P F StL RY Key Facts Education Cafe Zupas SEGMENTATION $250,295 $87,190 9% 22% Tapestry LifeMode 29 Households HHs% %USHHs Index 36,220 Age Profile Carol Stream ris. a vO Home Improvement ; R® © Savvy Suburbanites Sa ‘Scholars and Patriots (114) ===== PDF PAGE 101 ===== [Extraction: OCR (rendered-page OCR)] 6 /\ P F ST RY Key Facts Education Honeymilk Cafe SEGMEN TAT ION $320,000 $95,520 8% 16% 3.4 Tapestry LifeMode Households HHs% %USHHs Index Bh Age Profile Enterprising Professionals Savvy Suburbanites Professional Pride ‘Scholars and Patriots (14) k THE SCIENCE OF WHERE ===== PDF PAGE 102 ===== [Extraction: OCR (rendered-page OCR)] cE ; p e CT: RY Key Facts Education Cafe K'Tizo 2 SEGMEN TAT ION $299,807 $88,863 10% 18% Tapestry LifeMode 3.4 Households HHs% %USHHs Index 85,394 25% 47% Age Profile 16,133 18.89% 7.5% 6,890 8.07% 11.4% 5643 661% 71% ® © Savvy Suburbanites Se a) Soccer Moms we Me 5 $15,000.824.999 j { a “is Rustic Outposts (L10) —| i w%® Home Improvement i i me ’ Schotars and Patriots (L14) ENCE OF WHERE ===== PDF PAGE 103 ===== [Extraction: OCR (rendered-page OCR)] le \ Pp E ce RY Key Facts Education Cafe Zupas SEGMENTATION $260,965 $83,570 10% 23% ‘ Hos bs HHs% %USHHs Index , Qos 29% 37% Age Profile 25,037 27.36% = 7.5% 365 4,250 464% 11.4% 2 © Savvy Suburbanites SE Pin, Ash Home Improvement ) Rustic Outposts (L10) Y s : 2 | | = ES, Soccer Moms $35,000 -$49.999 1 “mS ‘Scholars and Patriots (L14) & esri THE SCIENCE OF WHERE ===== PDF PAGE 104 ===== [Extraction: OCR (rendered-page OCR)] Appendix D Psychographic Data and Profiles ===== PDF PAGE 105 ===== [Extraction: OCR (rendered-page OCR)] WHO ARE WE? Households: »: Ethnic Enclaves Wiban Villages 1,319,20 Average Household Size: 3.78 Median Age: 34.0 Median Household Income: $62,300 OUR NEIGHBORHOOD Urban Villages residents are multicultural, multigenerational, and multilingual. Trendy and fashion conscious, they are risk takers. However, these consumers focus on their children and maintain gardens. They are well connected with their smartphones, but more likely to shop in person. Their favorite stores are as diverse as they are, Costco or Trader Joe's, Target or Macy's. TAPESTRY SEGMENTATION Older homes (most built before 1970) are found in the urban periphery of large metropolitan markets. Married couples with children, and grandparents; many households are multigenerational (Index 322). Average household size is 3.78. Homes are older, primarily single family, with a higher median value of $325,100 (Index 157) and a lower vacancy rate of 4.7%. SOCIOECONOMIC TRAITS Multicultural market including recent immigrants (Index 277) and some language barriers (Index 289). Education: more than half the population aged 25 or older have a high school diploma or some college. Labor force participation rate higher than the US, but so is the unemployment rate at 6.2%. Brand conscious but not necessarily brand loyal; open to trying new things. Status-conscious consumers; choices reflect their youth—attention to style and pursuit of trends. Comfortable with technology and interested in the latest innovations. JS rate multiplied by 100. ===== PDF PAGE 106 ===== [Extraction: OCR (rendered-page OCR)] 7B AGE BY SEX ew Median Age: Indicates US US: 38.2 RACE AND ETHNICITY ¢esias; The Diversity Index summarizes racial and ethnic diversity. The index shows the likelihood that two persons, chosen at random from the same area, belong to different race or ethnic groups. The index ranges from 0 (no diversity) to 100 (complete diversity). INCOME AND NET WORTH Net worth measures total household assets (homes, vehicles, investments, etc.) less any debts, secured (e.g., mortgages) or unsecured (credit cards), Household income and a5 80-84 75-79 70-74 65-69 60-64 55-59 50-54 A549 40-44 35-29 30-34 25-29 20-24 15-19 10-14 5-9 <5 Hispanic* Mul Other Asian and Pac. Islander American Indian Black White = T T 49 0 Male Las Female AVERAGE HOUSEHOLD BUDGET INDEX The index compares the average amount spent in this market's household budgets for housing, food, apparel, etc., to the average amount spent by all US households. An index Diversity Index: US: 64.0 163.4% a 18.1% 126.4% 40% *Hispanic Can Be of Any Race. HBBUS Average 80% (0) net worth are estimated by Esri. Median Household Income $62,300 Wiss: 00 0 $100K $200K $300K $400K S500K Sé00K+ Median Net Worth $122,700 BE s:2500 $100K $200K $300K $400K $SO0K $600K+ US Median. OCCUPATION BY EARNINGS of 100 is average. An index of 120 shows that average spending by consumers in this market is 20 percent above the national average. Consumer expenditures are estimated by Esri. 101 94 118 Housing Food Apparel & Services Transportation Health Care intertainment & jecreation Education Seciaf Security Other 82 106 85 98 93 123 100 150 200 250 $140,000 $120,000 $100,000 $80,000 $60,000 sGuyuseq ueipay $40,000 $20,000 0 300 The five occupations with the highest number of workers in the market are displayed by median earnings. Data from the Census Bureau's American Community Survey. Transportation And ‘Material Movit Construction And Extrai Production T T T 100,000 200,000 300,000 Workers (Age 16+) ===== PDF PAGE 107 ===== [Extraction: OCR (rendered-page OCR)] AP D 7B s 1 MARKET PROFILE «., HOUSING * Fashion matters to Urban Villages residents, who spend liberally on new clothes Median home a is displayed - roakete that are primarily for the whole family. owner occupied; average rent is shown for renter-occupied markets. Tenure and home value are estimated by Esri. Housing type and average ® Saving is more limited than spending in this young market. rent are from the Census Bureau's American Community Survey. nor prolerances are es ° They carry credit cards, but banking is basic. They are likely to pay bills in person or online. ° Media preferences vary, but feature culturally specific channels or children’s shows. A * Leisure includes family activities like going to water parks, theme parks, watching movies, 4 and gardening, plus sports like soccer and basketball. Home Own Ownership 70.1% US Percentage: 62.7% Own Typical Housing: 37.3% Rent Single Family Median Value: $325,100 US Median: $207,300 POPULATION CHARACTERISTICS ESRI INDEXES Total population, average annual population change since Census 2010, and average Esri developed three indexes to display average household wealth, socioeconomic status, density (population per square mile) are displayed for the market relative to the size and housing affordability for the market relative to US standards. and change among all Tapestry markets. Data estimated by Esri. 900,000 Population 11,000,000 A 6 76 : - 350 5,031,100 Wealth Index 0o—— 9 —— 350 Socioeconomic Status Index 0.5% Population Growth (Annual %) 3.0% 0.7% ) Population Density (Persons per sq, mile) 25,000 A 1000 OQ ———}794 350 33¢ Housing Affordability Index ===== PDF PAGE 108 ===== [Extraction: OCR (rendered-page OCR)] TAPESTRY PUebon Villages SEGMENTATION com/t SEGMENT DENSITY This map illustrates the density and distribution of the Urban Villages Tapestry Segment by households. THE SCIENCE OF WHERE™ For more information 1-800-447-9778 info@esri.com hk esri.com ===== PDF PAGE 109 ===== [Extraction: OCR (rendered-page OCR)] Mode Group: Ethnic Enclaves Barrios Urbanos Households: 1,289,900 Average Household Size: 3.6 Median Age: 28.9 Median Household Income: $38,000 WHO ARE WE? Family is central within these diverse communities. Hispanics make up more than 70% of the residents. More than one in four are foreign born, bringing rich ions to these neighborhoods in the urban outskirts. Dominating this market are younger families with children or single-parent households with multiple balance their budgets carefully but also indulge in the latest trends and purchase with an eye to brands. Most workers are employed in skilled positions across the manufacturing, construction, or retail trade sectors. TAPESTRY SEGMENTATION OUR NEIGHBORHOOD © Family market; over a third of all households are married couples with children, with a number of multigenerational households and single-parent families; household size is higher at 3.62. ¢ While most residents live in single-family homes, almost 10% of householders reside in mobile home parks. ¢ Homes are owner occupied, with slightly higher monthly costs (Index 103) but fewer mortgages (Index 83). ¢ Most are older homes, nearly 60% built from 1950 to 1989. © Most households have one or two vehicles; many commuters car pool or walk to work (Index 145). © Barrios Urbanos residents live within the urban periphery of larger metropolitan areas across the South and West. SOCIOECONOMIC TRAITS ¢ While a majority finished high school, over 40% have not (Index 321). ¢ Unemployment is higher at 8.4% (Index 155); labor force participation is slightly lower at 61%. ¢ More than one in four households is below the poverty level (Index 183). e Residents balance their budgets carefully by spending only on necessities and limiting activities like dining out. e Many have no financial investments or retirement savings, but they have their homes. jx ceprosents proforens of the segm mated froin data by US rate muhtiplied by 100. RE ===== PDF PAGE 110 ===== [Extraction: OCR (rendered-page OCR)] AGE BY SEX (Esti dase) Median Age: Indicates US 85+ 80-84 75-79 10-74 65-69 60-64 55-59 50-54 45-49 A044 45-39 30-34 25-29 20-24 15-19 10-14 5-9 <5 AVERAGE HOUSEHOLD BUDGET INDEX The index compares the average amount spent in this market's household budgets for housing, food, apparel, etc., to the average amount spent by all US households. An index US: 38.2 RACE AND ETHNICITY és: ca) The Diversity Index summarizes racial and ethnic diversity. The index shows the likelihood that two persons, chosen at random from the same area, belong to different race or ethnic groups. The index ranges from 0 (no diversity) to 100 (complete diversity). Diversity Index: US: 64.0 " 72.5% Hispanic* gaeeeemmy 10.1% 7 6% Multiple fae 28.6% Other foes Asian and (2.4% Pac. Islander (amms.a% American {1.3% Indian 94.0% Black {20017.9% GE 12.8% White 1) 56.2% ff T Male 4% Female 8% 0 20% 40% 60% 80% BUS Average "Hispanic Can Be of Any Race. of 100 is average. An index of 120 shows that average spending by consumers in this market is 20 percent above the national average. Consumer expenditures are estimated by Esri. Housing Food Apparel & Services Transportation Health Care intertainment & jecreation Education Seciat Secerity Other 62 65 68 59 60 55 62 53 64 50 100 $140,000 — $120,000 —+---- $80,000 + $60,000 + sGujuseg ueipay $20,000 —- $100,000 -.-.--.----- $40,000 —--------- Ap D INCOME AND NET WORTH Net worth measures total household assets (homes, vehicles, investments, etc.) less any debts, secured (e.g., mortgages) or unsecured (credit cards). Household income and net worth are estimated by Esri. Median Household Income $38,000 | 56,100 0 $100K $200K $300K Median Net Worth $26,100 FE ::2500 (0) $100K $200K WB US Median. $400K SSOOK $600K+ $300K $400K $SO0K $é600K+ OCCUPATION BY EARNINGS The five occupations with the highest number of workers in the market are displayed by median earnings. Data from the Census Bureau’s American Community Survey. Office And Administrative Support Transportation And- Production Material Moving Construction And Extraction Salos And Related \_ 0 150 200 250 300 350 50,000 100,000 150,000 Workers (Age 16+) 200,000 250,000 ===== PDF PAGE 111 ===== [Extraction: OCR (rendered-page OCR)] 7D Be : MARKET PROFILE consumer prterences are estimated from data by GIk MR HOUSING e Walmart, Dollar General/Family Median home value is displayed for markets that are primarily owner occupied; average rent is shown for renter-occupied markets. Tenure and home value are estimated by Esri. Housing type and average ¢ Many households subscribe to satellite television to watch their favorite rent are from the Census Bureau's American Community Survey. Hispanic programs. ¢ Residents shop at discount and department stores Dollar, and JC Penney for baby and children’s products. ¢ Magazines are extremely popular sources of news and the latest trends, | including women’s fashion, bridal, and parenthood types of magazines. ° Typical of this diverse segment, Hispanic programming dominates the radio dials. Home ~ Own Ownership 59.5% US Percentage: 62.7% Own Typical Housing: 37.3% Rent Single Family ‘ Median Value: $92,200 ~— y US Median: $207,300 POPULATION CHARACTERISTICS ESRI INDEXES Total population, average annual population change since Census 2010, and average Esri developed three indexes to display average household wealth, socioeconomic status, density (population per square mile) are displayed for the market relative to the size and housing affordability for the market relative to US standards. and change among all Tapestry markets. Data estimated by Esri. 900,000 Population 11,000,000 A O- 42 : 350 4,708,100 Wealth Index O0— 70 - : 350 Socioeconomic Status Index 0.5% Population Growth (annual %) 3.0% 0 Population Density (Persons per sq. mile) 25,000 , A 1000 0 { 191 Z y 350 523 Housing Affordability Index ===== PDF PAGE 112 ===== [Extraction: OCR (rendered-page OCR)] TAPESTRY SEGMENTATION SEGMENT DENSITY This map illustrates the density and distribution of the Barrios Urbanos Tapestry Segment by households. For more information r 1-800-447-9778 info@esri.com esri.com THE SCIENCE OF WHERE™ ===== PDF PAGE 113 ===== [Extraction: OCR (rendered-page OCR)] LifeMode Group: GenXurban Parks and Rec Households: 2,449 600 Average Household Size: 2.51 Median Age: 40.9 2 ag ‘Ss . : £ ‘ 1 AAre ey awa nf | . gael | WHO ARE WE? These practical suburbanites have achieved the dream of home ownership. They have purchased homes that are within their means. Their homes are older, and town homes and duplexes are not uncommon. Many of these families are two-income married couples approaching retirement age; they are comfortable in their jobs and their homes, budget wisely, but do not plan on retiring anytime soon or moving. Neighborhoods are well established, as are the amenities and programs that supported their now independent children through school and college. The appeal of these kid-friendly neighborhoods is now attracting a new generation of young couples. TAPESTR SEGMENTATION Median Household Income: $60,000 OUR NEIGHBORHOOD Homes are primarily owner occupied, single-family residences built prior to 1970; town homes and duplexes are scattered through the neighborhoods. Both median home value and average rent are close to the national level. Households by type mirror the US distribution; married couples, more without children, dominate. Average household size is slightly lower at 2.51, but this market is also a bit older. SOCIOECONOMIC TRAITS More than half of the population is college educated. Older residents draw Social Security and retirement income. The work force is diverse: professionals in health care, retail trade, and education or skilled workers in manufacturing and construction. D This is a financially shrewd market; consumers are careful to research their big-ticket purchases. When planning trips, they search for discounted airline fares and hotels and choose to vacation within the US. These practical residents tend to use their cell phones for calls and texting only. ===== PDF PAGE 114 ===== [Extraction: OCR (rendered-page OCR)] 5C AGE BY SEX es: aa) Median Age: Indicates US 85+ US: 38.2 RACE AND ETHNICITY cies The Diversity Index summarizes racial and ethnic diversity. The index shows the likelihood that two persons, chosen at random from the same area, belong to different race or ethnic groups. The index ranges from 0 (no diversity) to 100 (complete diversity). fa fa