Johnstown Expressway Target Site Proposal Johnstown Economic Development Task Force April 5, 2004.

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