johnstown expressway target site proposal johnstown economic development task force april 5, 2004
TRANSCRIPT
Johnstown ExpresswayTarget Site Proposal
Johnstown Economic Development Task Force April 5, 2004
2Purpose
To propose the Johnstown, PA market as a potential site for Target
3Agenda
Who are we? Why the Johnstown market? Why this site? Why Target? What’s the proposal?
4Who are we?
Our team includes all the major economic development and political players in the market… City, state, and federal level representatives
…partnered with Echo Development of Pittsburgh
5Why Johnstown? Johnstown is the #1 most underserved
secondary market in PA based on population• 78,000 for each mass merchandiser
Sources: 2000 U.S. Census; 1997 U.S. Economic Census; walmart.com, samsclub.com, kmart.com, target.com
Market Mass MerchandisersNAICS: 4521102
Population (000)
Population per store (000)
Johnstown 3 233 78
Lancaster 7 471 67
Allentown 15 638 43
Harrisburg 15 629 42
Reading 9 373 41
Williamsport 3 120 40
York 11 382 35
Altoona 4 129 32
Sharon 4 121 30
Scranton 22 625 28
State College 5 136 27
Erie 11 281 26
6Why Johnstown? Johnstown is 8th largest secondary market
MSA in PA Population = 233,000
Source: 2000 U.S. Census
7Why Johnstown? Johnstown’s population is larger than other
secondary PA markets with existing Targets…
Source: U.S. Census Bureau, 2000, target.com
Metros MSA or County Population (if too small to be an MSA)
Johnstown 233 k
Washington 203 k
Butler 174 k
State College 136 k
Stroudsburg 130 k
Altoona 129 k
8Why Johnstown? Johnstown’s trade area is very large…
All or part of 7 counties Population = 355,000
Sources: Crown American REIT 2000 U.S. Census
%
J o hnstow n
9Why Johnstown? …but it has little overlap with existing Target
stores due to natural boundaries: mountains Most routes across the mountains are 2-lane highways Market is connected north-south by 4-lane expressway
Sources: Mapquest, 2004
Laurel Mountains Allegheny Mountains
10Why Johnstown? Johnstown is the #2 most underserved MSA
based on upscale households ($50k+)…• 8,000 for each mass merchandiser
Sources: 2000 U.S. Census; 1997 U.S. Economic Census; walmart.com, samsclub.com, kmart.com, target.com
Market Mass MerchandisersNAICS: 4521102
$50k + Population (000)
Population per store (000)
Lancaster 7 77 11.0
Johnstown 3 23 7.6
Allentown 15 106 7.1
Harrisburg 15 105 7.0
Reading 9 63 7.0
York 11 66 6.0
Williamsport 3 14 4.6
Altoona 4 15 3.7
Scranton 22 79.9 3.6
Sharon 4 14 3.6
State College 5 17 3.5
Erie 11 36 3.3
11Why Johnstown? …and its upscale ($50k+) demo is growing..
Sources: 1990, 2000 U.S. Census
Key Demos 1990 Census 2000 Census Percent Change
HH Income - Median - $50k + HH
$21,529 9,688
$30,442 22,654
+41% +134%
12Why Johnstown? …and its $50k population is competitive with
other PA Target secondary markets
Source: U.S. Census Bureau, 2000, target.com
Metros Population $50 k Population
Washington 203 k 82,795
Butler 174 k 75,059
State College 136 k 59,570
Stroudsburg 130 k 56,030
Johnstown 233 k 55,906
Altoona 129 k 47,236
13Why Johnstown? Johnstown is the #2 most underserved MSA based on college educated individuals
• 7,300 for each mass merchandiser
Sources: 2000 U.S. Census; 1997 U.S. Economic Census; walmart.com, samsclub.com, kmart.com, target.com
Market Mass MerchandisersNAICS: 4521102
BA+ Education Population (000)
Population per store (000)
Lancaster 7 62.0 8.9
Johnstown 3 21.9 7.3
Allentown 15 104.5 7.0
Harrisburg 15 96.6 6.4
State College 5 27.1 5.4
Reading 9 46.0 5.1
York 11 47.6 4.3
Williamsport 3 12.1 4.0
Sharon 4 14.1 3.5
Erie 11 37.6 3.4
Scranton 22 75.5 3.4
Altoona 4 12.3 3.1
14Why Johnstown? …and its college educated demo is growing…
Sources: 2000, 1990 U.S. Census
Key Demos 1990 Census 2000 Census Percent Change
Education HH - BA - Graduate
10,590 5,982
13,581 7,105
+28% +19%
15Why Johnstown? … and its college educated population is
competitive with other Target PA markets Only 5% fewer than State College, home to Penn State
Metros Population $50 k Population
College Grad Population
Washington 203 k 82,795 28,340
Butler 174 k 75,059 26,771
State College 136 k 59,570 25,067
Johnstown 233 k 55,906 23,760
Stroudsburg 130 k 56,030 23,577
Altoona 129 k 47,236 13,870
Source: U.S. Census Bureau, 2000
16Why Johnstown? Johnstown is the #2 most underserved MSA based on professional/managerial positions…
• 8,500 for each mass merchandiser
Sources: 2000 U.S. Census; 1997 U.S. Economic Census; walmart.com, samsclub.com, kmart.com, target.com
Market Mass MerchandisersNAICS: 4521102
Professional/ManagerialPopulation (000)
Population per store (000)
Lancaster 7 66.3 9.5
Johnstown 3 25.6 8.5
Harrisburg 15 100.2 6.7
Allentown 15 96.6 6.4
Reading 9 53.0 5.9
State College 5 26.9 5.4
York 11 55.6 5.1
Altoona 4 14.8 3.7
Sharon 4 14.4 3.6
Scranton 22 78.7 3.6
Erie 11 37.8 3.4
Williamsport 3 4.7 1.6
17Why Johnstown?
…and its professional/managerial demo is growing
sources: 2000, 1990 U.S. Census
Key Demos 1990 Census 2000 Census Percent Change
Professional/ Managerial HH
18,213 25,616 +41%
18Why Johnstown? In sum, Johnstown is competitive with other
Target secondary PA markets, and it is: Home to the largest medical community between
Pittsburgh and Harrisburg…
Conemaugh Regional Medical System
(3,000+ employees)
19Why Johnstown? …Rated by the Milken Institute as one of the
nation’s fastest growing “high tech hotspots” - Home to National Drug Intelligence Center
and 2 high technology complexes
Windber Research Institute
Johnstown High Technology Park
20Why Johnstown? Host of larger city amenities:
• 3 four- year universities• Sports arena with professional hockey
• New $25MM convention center complex
21Why this site? The site is the population center of region
• 62% (146k) of the MSA’s population lives within
15 miles/15 minutes
15 miles/ 15 minutes
Site
22Why this site? The site is a key “choke point” connecting:
• the business/sports/tourist district and…• … its 2 large medical centers…• …with its largest/most upscale neighborhoods
• 15904 and 15905 zip codes• Best $50k+, P/M, College Grad demos in MSA
15905 Zip 15904 Zip
Site
Business/Sports/Tourist District
Major Medical Center #2
Major Medical Center #1
23Why this site? The site is #4 traffic density spot in the market…
…but the one with best positioned for incentives
Rank Location Volume Available Sites
1 US 219 @ Route 56 W 30,000 Yes, 15 acre greenfield
2 US 219 @ Elton Road 29,000 None; site of new Wal-Mart SuperCenter; Bed Bath & Beyond and Circuit City
3 Scalp Ave @ US 219 28,000 None within close proximity
4 Johnstown Expressway @ Haynes St. 25,000
Yes; 5+ acre brownfield with possible incentives
5 Galleria Drive @ US 219
18,000 Yes, 26 acre Greenfield but major acquisition and/or site preparation issues
24Why this site?
The site is adjacent to 2 exits of a 4 lane limited access highway (Johnstown Expressway)
Site
Walnut St. Exit
Bedford St.Exit
Johnstown Expressway
25Why Target? Johnstown fills a gap in Target coverage
2.25 hours/81 miles between existing Targets• Greensburg and Altoona
Source: MapQuest, 2001
26Why Target? Consumer demand is there for Target
1,000+ residents have signed a petition asking Target to consider Johnstown
Actually, consumer demand is there for any mass merchandiser 5,000 signed a petition to ask K-Mart to stay
• “This store is going to close because the developer is selling the property to our competitor.” - Kmart spokeswoman Michele Jasukaitis
Source: Johnstown Tribune-Democrat, March 15, 2003 and July 15, 2003
27Why Target? Johnstown is already in a Target TV market
Johnstown-Altoona DMA • 3 of the 4 commercial TV stations in the
DMA are based in Johnstown• All stations provide coverage of Johnstown
plus other existing Targets in Altoona and State College
Source: Nielsen Media Research, 1999
28What is the proposal? Our plan duplicates a Gaithersburg, MD project
Gaithersburg uses a “main street” approach• 3 acre site• 2 level, 100,000 s.f. Target• Adjacent parking deck
• ~ 600 spaces providing 5 spaces per 1,000 s.f. • Adjacent retail environment
• Small specialty retail • i.e. Bath & Body Works; Barnes & Noble
• Restaurants • i.e. Panera Bread, Ben & Jerry’s Ice Cream
Source: Tony Tomasello, Gaithersburg Economic Development Department
29What is the proposal?
Gaithersburg site looking toward Target
30What is the proposal?
Gaithersburg site looking toward parking deck
31What is the proposal? Our task force offers a 5+ acre site…
32What is the proposal? …for a development similar to Gaithersburg
- 180k s.f. retail/ 1,271 parking spaces
- large format of the plan below is included in this package
33What is the proposal?
Our task force would work with you in a public/private partnership to spearhead:
Site acquisition and controlSite clearance Infrastructure upgradesParking deck development
34What is the proposal?
…leaving Target/its developer to focus on: Build-out for:
• Anchor store • Out parcels
Surface parking