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CM2016-096 ECON DEV ACTIVITIES 2016 HIGHLIGHTS CM2016-096 alaiZa.80/ L'`ir Chino Hills MEMORANDUM DATE: December 22, 2016 TO: Honorable Mayor and City Council FROM: Konradt Bartlam, City Mana«�%,7-44 RE: ECONOMIC DEVELOPMENT ACTIVITIES — 2016 HIGHLIGHTS During the past year, JLL, the City's Economic Development consultant, has assisted staff achieve a number of important goals. These include: • Continued completion of The Commons at Chino Hills and addition of popular tenants including Orange Theory, Project Pie and Wayback Burgers. • Leasing of the Santa Barbara Commercial component to quality tenants including: September's Taproom & Eatery, Nekter and a drive-through Starbucks. • Retaining the remaining big box retailers at the Crossroads Marketplace and reaching out to sophisticated retail companies with interest in purchasing and revitalizing the center. • Monitoring the ownership and the leases at the Big Lots Center to look for opportunities to revitalize the center. A summary of these accomplishments are included in the attached December 15, 2016 letter from JLL. Other important economic development accomplishments include the Marriott Extended Stay Suites Hotel at The Rincon, formerly Golden Triangle, and The Old Navy and JCrew Mercantile at The Shoppes. Staff will continue working with JLL and the City's commercial center managers to continue to recruit and maintain successful retailers, restaurant and services. KB:JL:MB Attachment (a) Scott Kaplan J Executive Vice President 3281 E.Guasti Rd.#850 Ontario,CA 91761 909 618 6900 scott.kanlan iam.ill.com December 15,2016 Rad Bartlam Joann Lombardo City of Chino Hills 14000 City Center Dr. Chino Hills,CA 91709 VIA Email: kbartlam@chinohills.ora I l ombardo(a,chi nohi l l s.ore RE:JLL Consultant Joint Accomplishments with City of Chino Hills Dear Rad&Joann, Below is a draft of our joint accomplishments for 2016 and a few of our goals for 2017.Thank you for your continuous support in our joint efforts to make shopping in Chino Hills best of class.We had the opportunity to expand our relationship and play an integral role in helping to reach its goals.With the cities continuous support,we are proud to outline below what was achieved. I. Commons at Chino Hills During 2016 we set out to achieve many goals and expectations.Overall we focused on creating a better environment for the shopping center by increasing occupancy in all categories. With that being said, we are proud to say we succeeded with Hobby Lobby,Orange Theory Fitness,Project Pie,Tastea and Wayback Burgers.As part of our duties to retain tenants for the City,we are currently working on downsizing Toys R Us,extending their lease and re-tenanting the remaining space with an ethnic grocery store.Additionally,we facilitated the cities success in enforcing employee parking requirements which has helped the overall traffic flow of the shopping center. IL The Santa Barbara at Chino Hills We worked with Lewis Retail Centers to create a unique retail tenant mix to serve the southern end of the residential growth within the City.Our mission was to work on 16,000 sf of retail leasing.We are currently in leases with Starbucks, Nekter and moving to into leases with September's Taproom&Eatery.In addition,the City requested for us to pursue Café Rio.We are proud to say we generated the LOT and soon will move into leases with this desirable tenant.The center has 1,890 sf of space available in which PizzaRev is aggressively seeking a franchisee for the Chino Hills marketplace.The development is scheduled for a Q3 2017 delivery. III. The Rincon At the beginning of 2016 our focus was to secure a drive-thru coffee user.We were negotiating with Dunkin Donuts and decided to let the community speak about what they wanted.After spending many hours with individuals and learning what their favorite coffee concept was,7 Leaves Café was the most desirable tenant for Chino Hills'residents at the southern end of the market.We met with the 7 Leaves broker to voice what the community wanted and immediately initiated an offer. We started with an LOI and moved quickly to leases and then finalized the deal within a month. Due to their sales volumes at the Shoppes,there was a strong need at the southern portion of the City to create a drive thru coffee concept. Our leasing activity is strong as we continue to move forward with multiple offers.We're in leases with Kiddie Academy and have an LOl with Lee Spa&Nails the largest nail salon in the US.Currently,Shabu Shabu and Farmer Boys are touring the marketand plan on submitting an offer in the near future. IV. Trumark We were able to close escrow on the entire property and ensure the retail portion was being sold to a skilled local retail developer.With that they can develop an 18,000 sf project with a variety of restaurants/retail.The estimated close of escrow is within sixty(60)days.JLL will be doing the retail leasing for this local developer. V. Indus/BAPS After several years working on this land sale,we were able to successfully negotiate a settlement and procure Newcastle as a buyer for the property.With the cities support&guidance we were able to successfully resolve the remaining issues which ultimately let Newcastle to close escrow on the property. VI. Crossroads Marketplace We have worked diligently with the City and ownership to find a sophisticated retail owner to purchase and revitalize the center.We've had multiple tours with potential buyers.Together with the City we personally contacted Bed Bath& Beyond,PetSmart and BevMo to set the stage with what we're trying to accomplish and they've expressed interest in staying within the City of Chino Hills.We let them know the City has a strong interest in retaining them.We are focused and determined on finding the right developer who's passionate about this project and the community. VII. Successful Recruitment of Tenants - - With a strong vision for the City,we focused on recruiting tenants to the City. Some notable tenants that we were able to procure are: Smashburger,It's Boba Time,Nekter,Café Rio,September's Taproom&Eatery,Hobby Lobby and 7 Leaves Cafe. VIII. Goals for 2017 -Crossroads Marketplace revitalization -99 Cent Only/Big Lots revitalization -Continue to work with the City to enhance the landscape at The Commons -Creatively look at all aging retail centers with an eye to enhance the shopping experience for the City of Chino Hills -Continue to recruit&retain best in class for our world class city Looking back on some of the highlights of 2016,it has been productive. As a team we have enjoyed partnering with the City and we look forward to accomplishing many more great things together in the New Year. Very truly yours, ki Scott Kaplan Erik Westedt Blake Kaplan Executive Vice President Senior Vice President Associate