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HomeMy WebLinkAbout[05a] Silvers Equestrianf.1W OF ST. JOSEPH MEETING DATE: AGENDA ITEM: SUBMITTED BY: June 17, 2010 Planning Commission Matters Silvers Equestrian Administration Council Agenda Item rJ a BOARD /COMMISSION /COMMITTEE RECOMMENDATION: The Planning Commission considered the request of Silvers Equestrian on June 7, 2010 to provide relief on the parking lot standards for a two year period. The Planning Commission unanimously recommended the City Council provide relief from the parking lot standards until June 1, 2012 or when Birch Street is reconstructed, whichever comes first. PREVIOUS COUNCIL ACTION: None. BACKGROUND INFORMATION: Nadine Eller - Hollerud purchased the property at 38 Birch Street East for the purpose of converting the structure to a Tack Shop. The property is zoned B2 Highway Business and since a Tack shop is retail, the use is a permitted. This property was previously used commercially for Curtis Marketing. For information purposes, meeting materials include a business plan and execute summary from her business model. Since this is an existing building and they are not adding habitable /retail space, the exterior requirements do not apply. The memo included with the meeting material indicates that the property is in conformance with the Transportation Corridor Overlay Ordinance. Strict enforcement of the parking Ordinance would require the parking area to be paved and include perimeter curbing. Eller - Hollerud is requesting a two year relief period to financially plan for the improvements. The request of Eller- Hollerud is similar to those previously approved by the Planning Commission. In reviewing the five year capital improvement plan, Birch Street is scheduled for reconstruction and utility work in 2014. It was hoped that by 2014 the street would be ready for conversion from residential to retail. The property at 38 Birch street is a corner lot with two gravel alleys, one north /south and one east /west. It would make sense for the parking lot improvements to be constructed no later than when Birch Street is constructed. With that in mind the Planning Commission did recommend the Council relieve the requirements for two years with a potential of waiting until Birch Street is reconstructed, if there are active plans in 2012 to do so. S(a):1 ATTACHMENTS: Request for Council Action Eller - Hollerud Request for Relief Business Plan Business Model Executive Summary MDG Review of Corridor Overlay /EDA Support 5(a):1 -2 5(a):3 5(a):4 -5 5(a):6 -13 5(a):14 -15 REQUESTED COUNCIL ACTION: Authorize the Mayor and Administrator to execute an agreement to delay the parking lot improvements for Silvers Equestrian, 38 Birch Street East, until 2012 or Birch Street is reconstructed, whichever comes first. SOP TO: The St. Joseph Planning Commission FROM: Nadine Eller - Hollerud, Silver's Equestrian Outfitters, LLC DATE: May 26, 2010 RE: Request for Temporary Relief from Ordinance 52 subd. 5d & 5f s� 3 SCANNED This is a request for relief from the St. Joseph City Ordinance 52 subd. 5d & 5t which requires new parking lots to be paved with curb and gutter installed. I am requesting that the City of St. Joseph relieve my new business, Silver's Equestrian Outfitters, LLC, 38 East Birch Street, from this requirement for a period of two years from the date of Planning Commission approval of the site plan design. The first two years in any business is difficult. The expense of the requirement at this time would greatly hinder my ability to obtain the necessary inventory and market the business in order to create positive cash flows. I understand the meaning behind the Ordinance and would like to have paved parking at this time, but it is just not feasible. The other matter of concern to me is the gravel surface of the alley access to my parking area. If I were to pave my parking lot, I would be battling the pitting affects that gravel can have on paved surfaces. . Please approve my request for relief from Ordinance 52 subd. 5d & 5f for a period of two years as of site plan approval. Kindest Regards, Nadine Eller- Hollerud Silver's Equestrian Outfitters 38 East Birch Street St. Joseph, MN 56374 320 - 291 -1234 5(a):3 L A )% 4 WqQ Ix ysQ[ i 861701 m § � E) ' EXISTING GONG_ 81DEWPLK ` 1`� Y UUU I� LUEX�tING OP'IG. 61 b�O�E ® C OR ed 1, ed Y QYd 1 t low Acca. 1 �Q A�A 5v NZ / z 0 A ? A b A � o e Wax, o a awl �Z QQa W D0a fY N� C C-1 ry Z W W � J aa� W �- (L W P4 }� (L a _W - W U 48 o N 5(a):3.1 BUSINESS PLAN ER'S EQUESTRIAN SUPPLY 38 EAST BIRCH STREET ST. JOSEPH, MN Nadine Eller- Hollerud A BUSINESS LOCATION` SILVER'S EQUESTRIAN SUPPLY Retail Brick and Mortar Store in St. Joseph, MN, 38 East Birch Street • Invest in exterior: Full length Pill open front porch with ramp, paint exterior, add rear parking lot � a ( • Make interior ready for retail I ++ saddle and riding equipment �I • Riding clothes and boots • Easy access vehicles from �' r Highway 75 • Fully Handicapped accessible FILLING ANEEQIN THE EQUINE NICHE MARKET _.. Market Needs • New Tack New Apparel • used Tack • Special Supplements • Repair and Services x $102 billion dollar impact on v $930 million dollar impact U.S economy annually on the Minnesota economy x $60.8 billion recreation and , Stearns and Wright Counties showing segments in the top five x $60,000 median household : 45% of horse owners make income $25,000 to $70,000 annually 2005 AMERICAN HORSE COUNCIL STATISTICS SCOPE OF BUSINESS FILLING THE RETAIL NICHE Central Minnesota Equestrian Market A. 9"W a Dressage Hobby/Trail s Endurance t ?,,� Jumping Western/ a English Rodeo 1 , t , -- INITIAL PLAN Capital Expenses $93,000 • Initial Inventory • Property Improvements to visible highway frontage compliant with beautification plans • Full commercial and liability insured • Security system • Only tack store of Its kind within 100 miles • Area Is home to several large Dressage and Endurance riding barns • Marketing and Promotion opportunity: located right between two horse show active fair grounds • Monthly advertising • Visibility at Events and Show • Word of Mouth it Social Media 6/3/2010 � Z-1 � �° >110. 5(a):5 Silver's Equestrian Outfitters ;t;b 38 East Birch Street SCANNED St. Joseph, MN 56374 Nadine Eller - Hollerud/ Owner Executive Summary A significant force behind the opening of a new retail business in any geographic location is need for the business. The force behind the opening of Silver's Equestrian Supply in the St. Cloud area is to fill the need that the equestrian market in that area has expressed. This particular market niche is currently wide open, with little to no competition and a wide variety of horse activities and enthusiasts. Thoughtful planning and research has gone into the decision to open a tack and clothing supply store to the horse loving population. The market analysis conducted for the purpose of this plan has revealed that horse people are still spending money on the tack, clothing and supplies they need in pleasure and competition. The opening of a retailer, such as Silver's, specializing in these products would be successful given the retail business experience of the owner, the knowledge of equine needs of the owner, the need, and the psychographic factors of the target customers. In other words, Silver's will professionally sell a desired lifestyle to a niche in central Minnesota. Financial analysis has revealed that Silver's will not be a huge risk financially based on the capital spending plan. Overestimation of significant expenses has ensured that there will still be a profit even if an assumption proves slightly inadequate, or an unexpected expense surfaces upon 5(a):6 opening. Overall, the analysis of the equine market, simplicity of marketing to this niche, and the SCANNED financial plans have solidified my belief that opening a retail equestrian supply in or near St. Cloud, MN would be a successful business. Statement of Purpose This is a business plan to open an equine tack, apparel and equipment retail store in Central Minnesota. Introduction This is a market analysis and business plan for a retail horse equipment and apparel store, Silver's Equestrian Supply. Market research has been conducted using literature, statistics review and interviews of equestrians in the area. Literature review includes equestrian trade journals and articles on current retail market trends. An examination of the viability of an equestrian store near my hometown has determined the practicality of the business plan. My purpose is to create a horse tack and equipment retail store in Central Minnesota. Industry Analysis The Central Minnesota equine industry is a small example of the global equine industry. Certain equine disciplines are growing in popularity, and people in the area need to buy specific tack for the various equestrian disciplines they pursue. In 2005 the American Horse Council completed a comprehensive study of the horse industry on the U.S. economy. According to the American Horse Council, the horse industry has a $39 billion dollar direct impact on the U.S. economy every year and a $102 billion dollar impact when figuring the direct and indirect spending (American Horse Council, 2005). These figures do include the sale of horses, race track gambling income, and feed crop production which do not directly affect a tack and equipment business. However, the inclusion of those segments of the horse industry help to draw the 5(aY7 �a conclusion that people in the horse industry have money to spend and they do spend quite a bit SCA1rMD (McClatchy, 2009). Relating directly to this business are the statistics that revealed the number of horse owners and the amount of spending in the recreational and showing segments of the horse industry. It is estimated that horse owners in Minnesota spend around $678 million dollars annually on horse related activities. In central Minnesota, Stearns and Wright Counties are in the top six in Minnesota for the number of horse owners and horse related spending (Buhr, 2004). Studies by the American Horse Council revealed that 45% of horse owners are middle -class making $25,000 to $70,000 annually. They tend to live in and around communities with populations of 50,000 or less (American Horse Council, 2005). Central Minnesota is made up of cities with populations of 50,000 or less and surrounding rural areas that have a variety of training stables and showing barns. Central Minnesota is a perfect location for an equine tack and equipment store especially given the lack of competition. Comparison of online tack retailers and brick and mortar stores for this type of business reveals that online retailing makes pricing more competitive than ever. Shoppers can compare in -store merchandise with the item at numerous online only stores while they are standing in the brick and mortar business. On the upside of this phenomenon is the convenience of cash and carry that the physical store provides, as well as the ability to try on items and not have to pay shipping, or return shipping if the item does not fit. 5(a):8 SC '4NNED The type and quality of inventory carried to satisfy the local market need for a full supply tack and apparel business can vary greatly. It is the intention of Silver's Equestrian Supply to carry high quality merchandise that is not available at local feed or fleet stores like Mills Fleet Farm and Mimbach Fleet Supply. After years of buying horse tack and equipment it has become evident that consumers of these products do get what they pay for. Buying low, price new merchandise does usually mean that the buyer is giving up quality. Many of the high quality tack lines are handmade or hand tooled. There is also a difference in the price of synthetic materials verses genuine leather goods. There are high quality synthetic saddles and bridles available on the market at a portion of the price of leather but consumers need to be wary of cheap reproductions. The upside of synthetic is the ease of cleaning and the fact that much of it is waterproof. Silver's intends to offer a variety of quality synthetic and leather goods. Silver's will not offer low cost, mass manufactured, low quality tack and equipment as seen in Mill's Fleet Farm and Mimbach Fleet Supply. These stores attract bargain price minded hobby horse owners that pay little attention to quality, comfort and fit. Low -end bargain saddles are only a good buy for those who enjoy occasional, very short rides. These buyers are welcome to Silver's but are not our target customer. Unlike the local farm stores that carry only a small selection of western tack and gear, Silver's will carry tack and equipment sought after and needed by those riders that compete in endurance racing, English, dressage, hunter, jumper, showing, competitive trail, cross country, rodeo, roping and reining. This list is not exhaustive. Careful selection of inventory will lead to a quality inventory mix to best meet the needs of the local market. SWOT Analysis 5(a):9 The strengths of Silver's include the ability of me as owner to combine my experience with horses and my retail business experience. Many people can start a business with passion, but having business experience and education will enhance the store's chance to be successful (MacDonald, 2005). Weaknesses include the expense of property renovations and inability to set up computers and store inventory on the property until proper security is in place, which may delay opening. The biggest opportunity for Silver's is the lack of competition in Central Minnesota. The only SCANNED direct competition with similar high end tack will be independent representatives that sell out of trailers at public expos and big shows. However, the combination of a brick and mortar store for the purchases better made in person, and an online store for those who wish to shop from home, gives people options both for returns and fittings. Threats to Silver's are eBay stores and other online auctions or sales that may be able to offer deep discounts. Big retail equine suppliers like Dover and Stateline tack are expanding west from the east coast. There are a few stores in the Minneapolis and St. Paul that try to emulate these tack giants and may eventually put up stores closer to Central Minnesota. Description of Venture Silver's Equestrian Supply will be a retail horse tack, equipment and apparel store in St. Joseph Minnesota. I have been thinking about the tack store concept in this area for a few years. More recently my daughter has started showing her horse and competing in dressage. Searches for 5(x):10 appropriate tack, attire and supplies were exhausting and revealed a definite lack of resources in SCANNED Central Minnesota. I started to wonder what other parents do to outfit their children and horses for showing, competing and club events and found that they had to travel very far or take their chances ordering over the internet. Adults also have a difficult time finding the right quality equipment for their sport or hobby. The need is not only for aesthetic purposes, but safety and regulations. Silver's will carry safety equipment as well as sport specific tack and apparel that are regulation for official showing (Seigel, 2009). The Central Minnesota Market consists of horse enthusiasts from beginners to avid professionals. The store will cater to a variety of customers, from those that wish to know more about horses, to the avid rodeo rider and showing professional. There are many pony clubs, schooling shows and 4H shows in Stearns and its surrounding counties. All of these youth events require certain tack and apparel to participate (MacDonald, 2005). It will be very convenient for parents and grandparents to have a store where they can bring the children in for tack and apparel fitting. It will also be nice to have a store that a parent can find used equipment at a lower price when a child is experimenting with an event, and may not continue in the same area. Adults also like to try different events and look for used tack and apparel to save on expenses if they do not enjoy the sport and try a new one. Many people start in dressage and move into jumping and cross country. These sports all require different gear and different attire. 5(a):11 t13 SCANNED Silver's will also carry horse related gifts, books, videos and other items enjoyed by others that love horses but may not own them (MacDonald, 2005). There are many people that decorate their homes in themes. For example, barn wood, western and primitive decor has become popular. Silver's will not carry mass produced decor items, but will carry actual vintage and antique tack and other items that make great gifts and household decoration. However, given the depressed state of the retail gift market at this time, emphasis on gifts will be small. To sum it up, I have conducted an extensive market analysis concerning this particular type of store in this area. My decision to open the store in St. Joseph on this particular property was not taken lightly. I have visited other store in other states that were opened in old houses and they really are quite nice compared to a warehouse or typical retail strip mall space. Existing homes make very warm, friendly places to do business and customers love the idea. I have concluded that the particular improvements that are going to be made to the home on 38 East Birch Street will improve that particular block of Highway frontage in St. Joseph. I would hope that it may attract other retail businesses to follow suit. Any business or city has one chance to make a first impression. Driver's on the highway make split second decisions as to whether or not they want to stop in or continue to the next town. I have read the plans for the Highway 75 business area and appreciate the thoughtful planning and purpose behind the ordinances. My plan is to make the front of the building at 38 east Birch Street not only compliant with the cities ordinances and plans, but a place that attracts visitors. 5(a):12 References SCANNED American Horse Council (2005). Most Comprehensive Horse Study Ever Reveals a Nearly $40 Billion Impact on the U.S. Economy. Retrieved January 8. 2010 from: http:// www. manesandtailsorganization .orglAmerican_Horse Council 2005_Report.pdf Buhn, B. (2004). Economic Value of Horses in MN. University of Minnesota Department of Applied Economics. Retrieved January 6, 2010 from: www. extension. edu / horse / components /pdfs /economicValueHorse/MN.pdf MacDonald, J. (2005). Running a Tack Shop as a Business. London: J.A. Allen McClatchy. (2009, September). Recession Takes Sharp Toll on Horse Owners. Tribune Information Services. Retrieved September 17, 2009, from www.hoovers.com McDonald, M. A. (1997). Starting and Running Your Own Horse Business. Massachusetts: Storey Publishing. 5(a):13 IV &dmhA ;z:;0.., MUNICIPAL DEVELOPMENT GROUP, INC. SCANNED DATE: June 2, 2010 MEMO TO: Judy Weyrens, City Administrator FROM: Cynthia Smith - Strack, Municipal Development Group RE: Tack Shop Background During the regular EDA meeting on May 26, 2010 an application to the EDA's Business Fagade Architectural Grant Program (BFA) was reviewed. During discussion on the application questions regarding consistency with land use regulations arose. As a result of the discussion relating to land use I'd like to provide clarification relative to discussion at the EDA meeting. 1. The proposed use is retail, an equestrian tack shop (selling personal and equestrian apparel and equipment). The use is permitted in the B -2 Highway 75 Business District under Section 52.32, Subd. 2C, subsections 1 and 6. 2. Several questions revolved around whether or not the structure was being altered. While a deck is being added for access purposes, including handicap accessibility, the building is not being structurally altered based on the following: a. Section 52.04, Subd. 12 defines a "Building" as 'Any structure, either temporary or permanent, having a roof and used or built for the shelter or enclosure of any person, animal, or chattel or property of any kind... '. The deck is not a habitable space and doesn't include a roof, therefore, is does not fit the definition of a 'Building' in and of itself. b. Section 52.04, Subd. 103 defines a "Structural Alteration" as 'Any change in the supporting members of a building such as bearing walls or partitions, columns, beams or girders or any substantial change in the roof or exterior walls'. Clearly the access ramp and deck do not rise to the level of 'structural alteration'. 3. Section 52.32, Subd. 8(c) relates to building exteriors and exterior building materials in the B -2 District. It is noted those standards relate only to new facilities and not existing buildings. 4. The property abuts East Birch Street and not CSAH 75, applicable setbacks are front 20 feet, side and rear ten feet. The structure is not being altered. Current structural setbacks on site are: front 24'; interior side 37', 3 "; side /alley 13', 6 "; rear 50'. The proposed deck is to be 19'3" from the front property line at its closest point. Under Section 52.12 (General Yard and Building Standards), Subd. 5, b) decks may extend into a required front yard by five feet so setback of the deck is not an issue. 5. Parking is regulated by Section 84.08. Parking will be in the rear of the building. Standards are met with the exception of surfacing and curbing to which an extension of time to bring into compliance is requested by the Applicant. It is noted the parking does not adjoin a residential use as an alley separates the commercial use from the residential 5(a):14 \:I use and the parking ordinance specifically uses the term 'adjoin' relative to a 'park#F D boundary' and a residential district. In addition, the parking lot boundary doesn't extend to the property line. 6. Section 52.21 is the Transportation Corridor Overlay. It is noted: a. The use is allowed in the underlying zoning district. b. Setbacks are not proposed to change as a structural alteration is not contemplated. c. Under the overlay district parking is required to be in the rear or side yard. In this instance the parking is proposed for the rear yard. d. A permit will be required prior to placement of any signage on the site. e. Required design standards: i. Viewshed requirements are measured from the edge of the applicable right of way (in this case Highway 75), this property is separated from Highway 75 by a second public right of way (Birch Street) which is more than 40 feet in ROW width. Therefore, the viewshed standard is not applicable. ii. Neither outdoor storage or fencing is proposed as part of the site plan. iii. Street tree landscaping is proposed to remain as is on the subject lot (trees and softscape to continue). f. If the Planning Commission wishes to review vegetative screening /buffering a landscaping plan could be requested. 5(a):15 �� �� :� „. i:,. fi'n .ay ,. s' ,{ �"$