Item 3Business Retention & Expansion
Strategic Plan
February 24, 2009 - Draft
Prepared by:
City of Southlake
Department of Economic Development
, Director
Greg Last,
CED, ASLA, AICP
(817) 748-8039 / econdev@ci.southlake.tx.us
SouthlakeSites.com / SouthlakeBusinesses.com / VisitSouthlakeTexas.com
Table of Contents
Page
1. Executive Summary
..........................................................................................................3
2. Introduction
A. Southlake Mission / Values...........................................................................................6
B. Economic Development Department – Mission & Goals...............................................7
C. Background...................................................................................................................7
D. Opportunity Identification...............................................................................................8
E. Planning Policies / Recommendations..........................................................................8
F. Strategic Plan Process..................................................................................................9
3. Strengths, Weaknesses, Opportunities and Threats (SWOT) Analyses
A. City of Southlake...........................................................................................................10
B. Economic Development Department Programs............................................................14
C. Chamber of Commerce.................................................................................................18
D. Business Community.....................................................................................................22
E. Corporate Involvement..................................................................................................25
F. Small Business..............................................................................................................27
G. Professional Service Businesses..................................................................................29
H. Retail Businesses..........................................................................................................30
I. Restaurants...................................................................................................................32
J. Manufacturing / Assembly / Distribution........................................................................34
K. Hospitality / Hotel / Tourism..........................................................................................36
4. Strategic Recommendations Summary
................................................................................38
5. Appendices
A. Existing Zoning Map......................................................................................................40
B. 2025 Comprehensive Land Use Plan............................................................................41
Southlake, Texas
- Business Retention & Expansion Strategic Plan - Draft: February 24, 2009 - Page 2
Executive Summary
Introduction
With approximately eight (8) million square feet of commercial property and over 1,600 businesses
in Southlake, it is important to understand, support and enhance the businesses in the City. The
non-residential tax base, evidenced by both ad valorem taxes and sales taxes, has increased
steadily over the past several years and is also increasing as a percentage of general fund
revenues.
As important as attracting business investment has been for the past ten years, retaining and
growing those businesses will be every bit as important for the coming ten years. This study and
planning document is intended to identify Strengths, Weaknesses, Opportunities, and Threats
(SWOT) for the diversity of business types in the City.
The desired outcome for this effort is a focused strategy on work efforts that will provide the
greatest return for the businesses, resulting in a strong and sustainable non-residential tax base for
the City.
Summary of Strengths and Weaknesses Analyses
City of Southlake: Strengths include: school districts, executive demographics, proximity to
airports, development standards, Southlake Town Square, developer relationships and a history of
master planned residential communities. Weaknesses include: lack of available land, finding labor
for service jobs, lack of a regional transit plan, cumbersome development process, lack of 4A / 4B
E.D. sales tax and limited number of homes.
Economic Development Department Programs: Strengths include: the existing
www.SouthlakeBusinesses.com website, annual Shopping & Dining Guide, existing Local
Business Report program, DFW 114 West Corridor regional marketing and Director’s tenure with
businesses. Weaknesses include: non-business responsibilities, inability to visit businesses
frequently, lack of retention emphasis, attendance at new business ceremonies, the lack of
incentive program focused on existing business retention and expansion and the Sidewalk Sale.
Chamber of Commerce: Strengths include: relationships with City staff, Ambassadors
program, involvement from service businesses, Leadership Southlake, many networking
opportunities, annual awards program, community marketing, annual golf tourney, annual events
such as Oktoberfest. Weaknesses include: lack of traction for the Retail Roundtable and
Restaurant Roundtable, retail business involvement and involvement from manufacturing /
assembly / distribution companies (of which there are few).
Business Community: Strengths include: involvement of business executives through
Southlake Executive Forum and other opportunities, trend towards increasing the diversity of
businesses, success of Southlake Town Square, and selected banking support. Weaknesses
include: shortage of “primary” businesses, saturation of banks, slowing residential growth and
perceived cost of doing business.
Southlake, Texas
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Corporate Involvement: Strengths include: involvement of Sabre, small business owners,
and regional involvement from companies like Fidelity Investments. Weaknesses include: limited
involvement from more corporate businesses.
Small Business: Strengths include: the involvement of the principles of the businesses and
Chamber networking opportunities. Weaknesses include: banking relationships financial
sophistication, and the lack of the typical franchise / corporate structure.
Professional Service Business: Strengths include: active participation in the Chamber, and
increasing presence of medical businesses. Weaknesses include: bank saturation and the lack of
focus groups.
Retail Businesses: Strengths include: Southlake as a regional retail market and isolated
involvement from active retail businesses. Weaknesses include: overall retail involvement in the
Chamber and a somewhat limited labor pool.
Restaurants: Strengths include: growing diversity of restaurants, Shopping & Dining
Guide, Catering Summary, and Southlake as a regional restaurant destination. Weaknesses
include: sustainability of mom-n-pop restaurants, low residential densities, involvement of national
franchises, and a history of restaurant failures.
Manufacturing / Assembly / Distribution: Strengths include: proximity to DFW International
Airport, good highway and nearby rail access, and strong existing business parks. Weaknesses
include: limited number of businesses, lack of Triple-Freeport, limited political support, and a lack
of an existing employment base.
Hospitality / Hotel / Tourism: Strengths include: proximity to DFW International Airport, and
relationships between Hilton’s management and marketing staff and the City E.D. Dept. staff.
Weaknesses include: breadth and diversity of hotels, lack of tourism destinations, lack of tourism
programs and a convention venue.
Strategic Recommendations
Although there are several strategic recommendations for each area analyzed by this Plan, only
the most important and feasible recommendations are selected for implementation.
1. Focus on Business Responsibilities: Maintain business-related responsibilities as a priority for
the Economic Development staff. There is significant interest on the part of staff to emphasize
the retention and expansion programs and efforts, thereby supporting existing businesses in
the City.
2. Develop Business Visitation Program: The most significant enhancement to a Business
Retention & Expansion (BRE) program for the City would be the prioritization of visits with all
Southlake businesses on some regular basis, optimistically visiting all businesses within a 2-
year cycle.
a. Include all businesses in the rotation: Corporate, retail, restaurants, industry and service.
b. Visit all businesses within a 2-year cycle.
Southlake, Texas
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c. Verify accuracy of business data and contact information
d. Identify issues of importance to businesses, obstacles to their success, and opportunities
for assistance.
3. Implement Monthly Local Business Reports: Expand the Local Business Report (LBR)
program to allow more businesses to get exposure within the City. Primarily this would focus
on retail and restaurants, but could be expanded to other businesses likely of interest to the
general citizenry.
a. Implement a monthly program allowing for twelve (12) businesses per year to get critical
exposure in the City.
b. Implement an annual program at a regular Council meeting that would recognize Chamber
of Commerce award recipients and give them a few minutes to say something about their
company.
4. Implement Tourism Programs through Staffing Dedicated to Hotel Occupancy Tax
Administration: Hire staff dedicated to the administration and implementation of the Hotel
Occupancy Tax revenues, particularly as it pertains to supporting tourism and the convention
and hotel industry resulting in increased patronage of Southlake businesses. Continue to
communicate with management and marketing personnel from the Hilton. Look for ways to
combine staff and resources to leverage pooled funds more efficiently. Ensure program
compatibility and no redundancy.
a. Hire staff dedicated to the administration of Hotel Occupancy Tax programs
b. Develop programs supporting tourism and the City’s hotel and convention businesses
c. Develop programs supporting retail
d. Develop programs supporting restaurants
5. Strengthen City / Chamber Relationships: Though maybe not “strategic”, a strong working
partnership between the staffs of the City and the Chamber as well as leadership for both
allows for the many successes of both organizations.
a. Identify and pursue opportunities for the Southlake Chamber Staff and the City Economic
Development staff (as well as other staff) to work hand-in-hand together on projects and
issues.
b. Develop opportunities for the Southlake City Council to engage and interact with the
Southlake Chamber Board of Directors.
6. Strengthen City / Corporate Partnerships: Although continuing to grow stronger, this strategic
effort is an opportunity to identify the Sabre / City partnership as a critical part of the City’s
business retention and expansion program.
a. Utilizing the City / Sabre relationship as a model, look for opportunities to leverage the
existing successes and develop a Southlake Business Council Program that identifies
potential corporate partners and nurtures the relationship to the benefit of both parties.
Southlake, Texas
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Introduction
Southlake Mission / Values
The City and its management staff have spent considerable time identifying and aligning the
desires of City Council, as elected representatives of the residents, to the work efforts of the City
staff, thereby allowing for progress towards strategic initiatives. This is accomplished through the
following Strategy Map.
This Plan supports the C-4 initiative to “Attract and keep top-tier businesses to drive a
dynamic and sustainable economic environment”.
Southlake, Texas
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Economic Development Department - Mission and Goals
Mission Statement
The Department of Economic Development's mission is to help create a diversified, vibrant
and sustainable economy through attraction and support of business enterprises meeting
the vision and standards desired by City leaders.
Department Goals
Provide desirable services for residents of the City
Develop and implement programs to retain and support existing businesses
Develop and implement programs to attract desired businesses
Develop and implement programs marketing the City
Develop and maintain strategic data resources necessary to attract and support
businesses and for utilization by City departments and the Chamber of Commerce
Encourage, develop and nurture an environment receptive to appropriate business
development
Develop and implement programs utilizing the Hotel Occupancy Tax to promote tourism
and the convention and hotel industry in the City
Background
A variety of business types and businesses, as represented graphically by the cover of this
document, need to be supported by the City of Southlake. These are only representative of the
many diverse companies located in Southlake.
Travel Local Restaurant
Electronics / Distribution Franchise Restaurant
Technology Banking
Commercial Real Estate Internet Based
International Telecommunication Retail
Service / Insurance Small Business
Hospitality
The Southlake Department of Economic Development maintains a database of all businesses in
Southlake, easily accessible via the web portal www.SouthlakeBusinesses.com. Following are a
few characteristics of businesses in Southlake:
1,620 total businesses in Southlake
200 retail businesses
101 restaurants
420 professional service businesses
180 home-based businesses
719 miscellaneous businesses
Southlake, Texas
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Southlake has approximately 8 million square feet of commercial real estate existing in the City.
Following is an overview of the square footage of Southlake businesses by general use:
2,518,018 sf of office space
1,685,146 sf of industrial / flex space
2,796,610 sf of retail space
941,570 sf of “other” commercial space (Schools, warehouse, lube, kennels, etc.)
Opportunity Identification
The size and breadth of the commercial businesses in the City are obvious assets to the quality of
life in the City as well as the non-residential tax base for sustainable prosperity and municipal
services.
This study identifies strengths, weaknesses, opportunities and threats to existing and future
Southlake businesses. It is a programming tool for identifying ways to enhance the viability and
sustainability of Southlake businesses.
Planning Policies / Recommendations
Southlake has had a history of paying close attention to the land use policy documents, using them
as a guideline (not a directive) for land use decisions. Having a current land use policy document
is a great asset in eliminating unknowns and thereby enhancing the likelihood of desired quality
development in the City. The Planning and Development Services Department can assist
businesses with any interpretations needed regarding these plans. All plans are available for
review on the City’s website.
Urban Design Study and Median Plan: The City has also recently approved an Urban
Design Study that provides recommendations for the S.H. 114 Corridor. The scope of
the Urban Design Study & Median Plan includes the City’s three main roadway
corridors: F.M. 1709, S.H. 114, and F.M 1938. The study provides recommendations
for the location of design enhancement along these corridors. The study also includes
recommendations for the location and design criteria for a raised landscape median
along F.M. 1709 and F.M. 1938.
Southlake, Texas
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2025 Plan: The Southlake Charter requires a
periodic update to the comprehensive land use plan
for the City. This policy document was approved
September 20, 2005 by the City Council. This
comprehensive document includes a variety of
guidelines for the future development of the City;
land use recommendations, environmental
recommendations, transportation systems, etc.
(See Appendix B for full map and legend) Business
expansions where new development occurs should
pay particularly close attention to the
recommendations of the following studies:
Study Area I: State Highway 114 Corridor Plan
Study Area II: Davis Blvd. (F.M. 1938) Corridor Plan
Study Area III: Southside Area Plan (F.M. 1709)
Consolidated Land Use Plan
Mobility and Master Thoroughfare Plan
Parks, Recreation & Open Space Master Plan
Pathways Plan
Sidewalk Plan
Strategic Plan Process
This strategic plan has been developed through the following process:
Draft Development by the E.D. Staff: The initial draft of the plan was prepared by the
staff of the Department of Economic Development.
Development Community Input: Input was solicited from several of the major
commercial real estate developers in the City.
Chamber of Commerce: The Executive Director and Board of Directors of the
Southlake Chamber of Commerce were asked to review, comment and contribute to the
plan.
City Council: The Strategic Plan was then presented to the Southlake City Council for
consideration.
Southlake, Texas
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SWOT Analysis
City of Southlake
Strengths
School Districts: The City of Southlake is fortunate to be served by four (4)
outstanding school districts; Carroll ISD (78% by land area), Grapevine-
Colleyville ISD (5%), Keller ISD (7%), and Northwest ISD (10%). The
quality of public schools in Southlake has long been a major economic
benefit to the City.
Southlake Demographics / Executives: The high income demographics of Southlake are a
result of the predominantly executive / manager level occupations of Southlake residents.
Example 2000 Census data references include the following:
Average household income: $150,956
67.7% of households have household income greater than $100,000
59% of head of household have a bachelor’s degree or higher
Proximity to Airports: The City of Southlake is fortunate to be located geographically
between DFW International Airport and Fort Worth Alliance Airport, anchoring the east and
west ends (respectively) of S.H. 114.
Fort Worth Alliance Airport DFW International Airport
Development Standards: Southlake has a history of contemporary development standards
providing for and encouraging quality developments. In the 1990’s the emphasis was on
quality master-planned residential communities. In 1995 a Corridor Study was approved
which provided for significant development code enhancements; corridor landscaping
standards, driveway regulations, sign ordinance enhancements, building articulation
requirements, etc.
Southlake Town Square: The Southlake Town Square development has gained notoriety
statewide and nationally. The success of Town Square is one of the most obvious
examples of commercial successes in the City. As well, it has certainly raised the exposure
of the City across the region and state.
Southlake, Texas
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Developer Relationships: Southlake has been fortunate to have the long-term involvement
and investment of both residential and commercial developers in the City. Early
involvement included participation in “Workgroups” intended to develop contemporary but
realistic development standards. Evolutionary involvement has shifted more to commercial
developments with developers of significant commercial centers being accomplished by
residents of the City.
Master Planned Residential Development: Southlake has many comprehensively planned
residential communities. These developments provide many amenities to their residents
and add to the overall aesthetic pleasantness of the regional roadways.
Weaknesses
Available Land: Although Southlake’s historic rural feel
gives the sense of significant available land for
expansion of businesses, there are actually limitations
on the opportunities for “Greenfield” land development.
There are very few sites that have adequate
infrastructure and are “shovel ready” for building
construction. As well, there are several land owners of
significant parcels that have no need or desire to sell.
Labor for Service: One of the problems frequently identified by businesses that need to
employ individuals to work in service-related businesses. Examples include retailers,
convenience food locations and table-service restaurants. Housing for a diverse labor pool
frequently requires commuting.
Regional Transit Plan: The City is not currently part of a regional transit plan
connecting Southlake to area venues, airports, or labor sources. Many
suburban communities in the Metroplex are aggressively pursuing this type of
connectivity for the long-term viability of their communities.
Development Process: Southlake is known for quality development standards, it is also
known for an often-times cumbersome development process. This process is frequently
cited as a deterrent to business attraction and expansion.
Lack of 4A / 4B E.D. Sales Tax: Although the City has a “4B” Economic Development tax,
100% of these funds are allocated to park development. Many communities utilize 4A / 4B
E.D. tax to benefit the attraction, retention and expansion of businesses in their community.
Limited Number of Homes: The total population of the City is not expected to exceed
35,000 people. As the City’s retail market share decreases, it may be a challenge to
sustain retail now serving the greater region. This may encourage a more regional /
cooperative approach to marketing for businesses in the City.
Southlake, Texas
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Opportunities
“DFW 114 West Corridor” Brand Enhancement: The City has been supportive of the E.D.
Department’s efforts to establish and enhance the “114 West” brand for the corridor west of
DFW Airport. Continuing this emphasis will increase our awareness as a sub-regional
center of commerce. A planned change to the publish date of the 114 West supplement to
the Dallas Business Journal, from September to November; will better accommodate the
scheduling of various E.D. Department projects.
Community Events: There are many community events in the City throughout the year (e.g.
football games, Art in the Square, soccer / baseball tournaments) which could likely be
tapped for increased business exposure.
DPS Involvement: The Department of Public Safety (DPS) has established a Community
Liaison role which could be enhanced to establish better and continued communications
with the businesses in the City.
Business / Council Relationships: There is a perception by some that there is a disconnect
between the City Council and the business community. There may be opportunities to
enhance the interchange between elected leadership and business leaders.
Business Life Cycle Opportunities: There is an opportunity for a business to start small in
Southlake and grow both financially and through continued expansion of real estate
utilization through leasing or ownership. Although available, there may be an opportunity to
better market this capability. Austin might be an example of incubator programs that grow
long-term businesses.
Threats
Competitive Markets: Southlake is obviously a suburb within the greater DFW Metroplex.
As such, there is significant competition for business expansion among sub-regional
municipalities.
Westlake: Westlake is Southlake’s closest neighbor and has the most
o
potential for competitive business success. An emphasis on sales tax for
municipal funding increases their desire for sales tax generating
businesses (retail and restaurants).
Roanoke: Roanoke continues to grow and is particularly receptive to
o
retail development which over time will compete with retail in Southlake.
Roanoke can also accommodate industrial / flex prospects.
Lewisville: Lewisville is very aggressive with incentive packages
o
for corporate and office development. As well, they are attractive
locations for businesses that do not wish to comply with
Southlake’s architectural design standards.
Southlake, Texas
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Coppell: Coppell has a strong flex / industrial business base. Their
o
proximity to Southlake competes aggressively for the flex product.
They provide facilities for the larger industrial / distribution companies
than cannot be accomplished by sites in Southlake.
Las Colinas / Irving: Las Colinas competes directly with Southlake’s
o
corporate / office businesses. High vacancies over the past five years
have resulted in below market leasing rates which have impacted leasing
opportunities in our market.
Plano: Corporate users will also look at the Plano market when
o
evaluating the DFW market, particularly the Legacy development.
Frisco: Although there is some distance from Frisco, most
o
corporate relocations / expansions within the DFW Metroplex look
at Frisco as well as Southlake. Frisco has the most aggressive
and competitive incentive packages of any city in the Metroplex. It
has been estimated that every week Frisco’s Economic Development Corporations
(4A+4B) spend an amount equivalent to the Southlake Economic Development
Department’s annual budget.
Richardson: Richardson took a significant blow during the dotcom
o
bust but has continued to show resiliency with increased
occupancies in the Class A office market. Their weakness of low
occupancies is a strength when viewed by tenants looking for near-
term occupancies. Their established labor force with experience in
technology and telecommunications is also a likely asset.
DFW Airport: Although not a City, the commercial development opportunities at the
o
Airport may impact the potential growth of certain businesses, more likely those in
logistics, distribution or warehousing.
Southlake, Texas
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SWOT Analysis
Economic Development Department Programs
Strengths
www.SouthlakeBusinesses.com: This unique URL allows
residents, local businesses and visitors direct access to all
businesses in Southlake. This web portal is based on the
E.D. Department’s business database. It features two ways
to search for a Southlake business; the business name or a
unique “keyword” that searches both the business’ name as
well as the business description provided to the Dept. by the
business. This database currently includes over 1,600 businesses.
Shopping & Dining Guide: The E.D. Dept. has produced a Shopping
& Dining Guide since September, 2000. A product of the business
database, this guide is professionally printed and currently includes
approximately 100 restaurants and 200 retailers. Approximately
60,000 copies of this guide are printed annually and distributed to
regional hotels (via contract), DFW Airport rental car / ambassadors
(via contract) as well as significant distribution by the E.D. staff to
many venues; large area businesses, local and regional sporting
events. This guide is often requested by tourists / visitors to
Southlake for their “goody bags”.
Local Business Report: In place since 2002, the “LBR”
program allows a local business an opportunity to appear
before City Council and provide a two to three minute
overview of their business. The taping of the presentation
allows repeated viewing by residents via the City’s cable
channel. Initially occurring at each Council meeting, the
frequency was reduced to four per year due to the length of
City Council meetings. This program has been extremely
well received by the businesses that have participated.
“DFW 114 West Corridor” Marketing Emphasis: The E.D.
Department, partnering with Maguire Partners (Developers of
Solana), led the development of the initial DFW 114 West
Corridor supplement in the Dallas Business Journal in the
September, 2006 issue and again in 2007 and 2008. This 32
page regional marketing supplement covers a diversity of topics
representing the many assets of the 114 West Corridor; office,
retail, education, residential, corporate office, airports, industrial,
hospitality, health care, dining and professional services. This
supplement is now the largest supplement published by the
Dallas Business Journal. It is supported by advertising from
business allies throughout our region.
Southlake, Texas
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Director’s Tenure with Businesses: The Director of Economic Development
has significant tenure (18+ years) in Southlake. He attends the Southlake
Chamber of Commerce Board meetings regularly as an ex-officio officer.
He also regularly attends all other existing business networking events on
behalf of the City (Metroport, Southlake Executive Forum, etc.). His breadth
and depth of engagement in the existing businesses of Southlake is
certainly a strength.
Greg Last, Director
Weaknesses
Non-Business Staff Responsibilities: Several major projects (Pearson land sale, web site
administration and redevelopment, logo development, impact fees, trolley establishment)
have necessitated staff attention. These projects were recently completed.
Visitation Frequency: A few years ago the Director of E.D. visited businesses west of White
Chapel one year and businesses east of White Chapel the following year. The purpose of
the informal visits was to validate business contact information, services or products
offered, discuss City / business relationships and / or challenges, and to identify and
discuss issues important to the business and how the City might help. Although there are
still connections being made by the E.D. staff with the retailers and restaurants as a
necessity for compiling the Shopping & Dining Guide, businesses not in the S&D Guide are
not visited with any regularity. Contributing factors to this challenge include: significantly
more businesses in Southlake, staff responsibilities for non-business work efforts, and
increased efforts required to address business attraction in the City, particularly on critical
properties along S.H. 114.
Lack of Retention Emphasis: Although there is a desire for enhanced emphasis on existing
business support, we have not been able to dedicate the time or resources to emphasize
business retention and expansion.
Ribbon-cutting Attendance: The E.D. staff has found it nearly impossible to attend any of
the ribbon cutting ceremonies coordinated by the Ambassadors Committee of the Chamber
of Commerce announcing new businesses in the City. In an effort to have some presence,
the Administrative Secretary, Corie Wood, has recently been attending as many as
possible. As well, other City leaders rarely attend a new business ceremony.
Lack of BRE Incentive Program: The City does not have any type of incentives focused on
retaining or expanding businesses. As the City matures, it may become more important to
grow businesses internally rather than focus on attraction of new businesses.
Southlake, Texas
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Sidewalk Sale: The City-wide Southlake Sidewalk Sale was
held for three years. The second year more centers and
individual businesses participated than the first year. The
national franchise retailers typically are more challenged to
participate than the local retailers. The E.D. Staff debriefed
annually with retailers and restaurants as to ways to improve
the event. In 2007 the event was held in April instead of June at the request of retailers.
This change did not result in increases in participation by retail centers or individual retailers
as hoped for. It was decided not to hold the Southlake Sidewalk Sale in 2008. The time it
takes to coordinate the event does not seem to be worth the limited involvement and
support by the retailers and property managers.
Opportunities
Website Enhancements: The E.D. Staff led the update to the City’s overall website which
included significant enhancements to the business support aspects on the web. The new
service components added to www.SouthlakeBusinesses.com significantly enhanced the
exposure and accessibility of Southlake businesses. A dedicated effort is needed to
embellish information and further enhance this important business resource.
Hotel Occupancy Tax Programs Supporting Businesses:
Southlake’s first hotel, the Dallas Hilton / Southlake Town
Square, opened June 2007. The Hotel Occupancy Tax
(HOT) of 7% should provide significant annual revenue
(estimated at $600,000+) to the City. It should be noted that
this revenue has legislative limitations requiring that it be
used to promote tourism and the convention and hotel
industry. This funding source should provide opportunities to
support tourism in the City, overnight stays at the hotel, and also increased patronage of
local Southlake businesses.
Threats
Staffing Turnover: The professional staff had been fairly stable for several years until the
departure of the 9-year tenured E.D. specialist in November 2007. Even staff turnover at
the administrative level negatively impacts the department’s ability to deliver consistent high
quality and tailored business services. Changes in professional staffing have been and
would be a significant setback for any BRE program. The prior E.D. Specialist had
particular experience and relationships with the retail businesses as a result of producing
the Shopping & Restaurant Guide and organizing the Sidewalk Sale for the City for several
years.
Southlake, Texas
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Strategic Recommendations
(*Included in final recommendations)
1. *Focus on Business Responsibilities: Maintain business-related responsibilities as a
priority for the Economic Development staff. There is significant interest on the part of staff
to emphasize the retention and expansion programs and efforts, thereby supporting existing
businesses in the City.
2. *Bi-Annual Business Visitations: The most significant enhancement to a BRE program for
the City would be the prioritization of visits with all Southlake businesses on some regular
basis, optimistically visiting all businesses within a 2-year cycle.
3. *Monthly Local Business Reports: The LBR program should be expanded to allow more
businesses to get exposure within the City. Currently at approximately 4-6 programs per
year, a monthly program would allow for twelve (12) businesses to get critical exposure in
the City.
4. *Staffing Dedicated to Hotel Occupancy Tax Administration: Hire staff dedicated to the
administration and implementation of the Hotel Occupancy Tax revenues, particularly as it
pertains to supporting tourism and the convention and hotel industry resulting in increased
patronage of Southlake businesses.
5. BRE Incentives: Look for opportunities that can really impact the retention or expansion of
businesses already located in the City.
Southlake, Texas
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SWOT Analysis
Southlake Chamber of Commerce
Strengths
City Staff Relationships: The relationship between the Southlake
C.O.C. staff and the E.D. Dept. staff has been strong for years.
Both agencies work cooperatively on events (e.g. golf tourney,
sidewalk sale, trade show events, leadership Southlake) and
communicate frequently and candidly.
Ambassadors: Over the past couple years, the Ambassadors program for the Chamber
has grown to be a significant contributor to the overall business community and particularly
the welcoming of new businesses to the City. 2007 participation included approximately 60
ribbon cuttings and ground breakings. Event participation typically includes approximately
12 local business leaders. There is a monthly “Ambassador of the Month” recognition as
well as an annual “Ambassador of the Year” awarded at the Chamber’s annual banquet.
Service Business Involvement: Membership and participation in the Chamber has
predominantly been from the service sector businesses more so than retail, restaurants, or
industry. The active members are very committed to the success of the Chamber and the
City and contribute significant professional and personal time thereto.
Leadership Southlake: The Southlake Chamber, in cooperation with the City of Southlake,
has organized and administered the Leadership Southlake program annually for many
years. The program is very diverse in topics and has led to enhanced community
involvement by many future leaders across various aspects of the City and the Chamber.
Networking Opportunities: The Chamber organizes periodic networking opportunities for
Chamber members to attend. These are typically attended by business people who are
very involved in the business community and are networked across a variety of formal and
informal networking systems.
Mixplosion: Power networking for business owners. A quarterly breakfast meeting,
attendees have the opportunity to not only share what they do with other business
owners, but learn about other businesses as well. Likened to speed-dating for
business, it provides a fast-paced networking opportunity for business owners who want
to make the most of their time.
Exchange: The C.O.C. Exchange provides members with an opportunity to network in a
casual and informal environment. Show up when you can and enjoy a cocktail,
st
appetizer, door prizes and networking. This event is held the 1 Thursday monthly from
4:30 p.m. - 6:30 p.m. It is held in the sponsor’s place of business. This after hour’s
mixer is a social reception enabling Chamber members to network informally.
Southlake, Texas
- Business Retention & Expansion Strategic Plan - Draft: February 24, 2009 - Page 18
th
Chamber Luncheons: The C.O.C. monthly luncheons are held on the 4 Thursday of
each month (Exceptions are February, November and December). In April and October
they hold market luncheons, typically 11:30 a.m. – 1:00 p.m.
Chamber Market: This special luncheon is held in May and allows businesses to set
up marketing tables and interact directly with luncheon attendees.
Keller / Southlake Joint Luncheon: The Southlake Chamber and the Keller Chamber
have cooperated to have two join luncheons of both memberships annually, at
Southlake in June, Keller in December.
Awards Programs: The Chamber has long held a successful
annual “Awards Banquet” and provides for the following award
recognitions:
Small Business of the Year: Recognizes those who give to the
community and partner with the Chamber.
Corporate Business of the Year: Recognizes those who enhance the local community
through volunteerism and education.
Ambassador of the Year: Awarded to the ambassador that attends the most ribbon
cuttings, networking events, and other events during the past year.
Volunteer of the Year: Awarded to a volunteer that assists the Chamber with various
duties for that year.
Director of the Year: Awarded to the Chamber Board Director who is recognized for
their outstanding contributions to the Chamber for the year.
Chairman’s Award: Awarded by the Chairman of the Board to a member that they felt
contributed the most over the year.
President’s Award: Awarded by the President of the Chamber to a member that has
provided the most assistance to the President for the year.
Youth of the Year: Awarded by the Southlake Youth Action Committee to a youth,
recognizing their many accomplishments, involvement, and contributions to the City.
Citizen of the Year: Recipient must be a Southlake resident or a member of the
Southlake Chamber of Commerce for at least three (3) years; that has volunteered time
and leadership to improve economic, civic, and cultural well being to the City of
Southlake.
Community Marketing: With the recent redevelopment of the Chamber’s website and
efforts to market the website and the Chamber’s resources, they continue to be a valuable
marketing partner and community resource.
Southlake, Texas
- Business Retention & Expansion Strategic Plan - Draft: February 24, 2009 - Page 19
Golf Tourney: The C.O.C. Golf Tourney has been held annually for
several years, typically in April / May. The tourney is very popular, as
evidenced by 120-144 participants in the annual tourney. The past
several years it has been held at the Timarron Country Club in
Southlake. At this time the C.O.C. has decided not to continue the
annual golf tourney for 2009.
Oktoberfest: This annual event is held in October at Southlake Town
Square. The last event in the fall of 2007 had an estimated attendance
of 40,000, with approximately 100 vendors participating. The Chamber
Board is typically very involved during the event contributing various
duties. This event is typically a significant revenue generator for the
Chamber, as well as the many volunteer / civic organizations that also
participate.
Weaknesses
Retail Roundtable: The Chamber established a “Retail Roundtable” and met several times
a year or so ago. It was sparsely attended and no longer meets. Although non-chamber
members were also invited to attend, the roundtable never got the traction it needed to
succeed.
Restaurant Roundtable: Similar to the Retail Roundtable, the Chamber established a
“Restaurant Roundtable” during the same time period with similar lack of traction.
Retail Business Involvement: Although the Chamber has significant business involvement
throughout the community, there are very few retail businesses actively engaged with the
Chamber.
Manufacturing / Assembly / Distribution Involvement: Similar to retail involvement, there are
very few manufacturing, assembly or distribution type businesses involved in the Chamber.
Opportunities
Board / Council Relationships: Although the relationships between the City Council and
the Chamber Board of Directors is very positive, there are limited opportunities for
interaction and likely there is potential for strengthening this relationship.
DFW 114 West Corridor Collaborative Marketing: While the Chamber Board supports the
DFW 114 West Corridor regional economic development supplement in the DBJ, it has
elected not to participate with paid advertising. Marketing, particularly regional marketing,
is difficult to tie to direct benefits or responses. It may be possible to coordinate area
chambers of commerce and provide for additional marketing support for the region. Major
employers and developers in the region recognize the merits of enhancing the general
business economy and the benefits to area businesses.
Regional Marketing & Promotion: There are likely opportunities to partner with the
Marketing & Tourism Coordinator to attract convention groups and regional consumers.
Southlake, Texas
- Business Retention & Expansion Strategic Plan - Draft: February 24, 2009 - Page 20
Legislative Affairs: The Chamber coordinates the annual Tarrant County Days at the state
Capitol, allowing local constituents an opportunity to discuss issues important to the County
with our state legislators. They also facilitate communication of legislative issues that might
be of interest to Chamber members.
Threats
Economic Downturn: As with any economy, a significant economic downturn has an
immediate negative effect of Chamber memberships and involvement. The 911 economic
slow down was definitely felt through stagnant membership levels.
Strategic Recommendations
(*Included in final recommendations)
1. *Continue Strong Staff Interactions: Though maybe not “strategic”, a strong working
partnership between the City E.D. Staff and the C.O.C. staff allows for the many successes
of both organizations and should be identified as the foundation for strategic initiatives.
2. *Strengthen Board / Council Relationships: Look for opportunities to strengthen the ties
between the City Council and the Chamber Board leadership. A strengthened leadership
team and common vision will allow the advancement of many strategic initiatives.
Southlake, Texas
- Business Retention & Expansion Strategic Plan - Draft: February 24, 2009 - Page 21
SWOT Analysis
Business Community
Strengths
Business Executive Involvement: Southlake is
fortunate to have the involvement of many of the
executives of Southlake businesses. Many of the
businesses actively involved in the Chamber are
represented by the senior executive for the business.
The Southlake Executive Forum has long hosted a monthly breakfast for executives that
either live or work in Southlake. This organization continues to grow in number.
Business Diversity Increasing: As Southlake has grown, the diversity of businesses in the
City has also increased. As individual businesses add to the diversity available in the City,
the retail strength and attractiveness increases and strengthens the overall business
community in the City.
Southlake Town Square Success: The success of Southlake
Town Square has added significant strength and diversity to our
business community, particularly as it relates to professional
businesses such as financial advisors and medical uses.
Selected Banking Support: There are several business leaders from the banking
community that have had long and significant involvement in Southlake. They have served
as Chamber Board Chairs and hosted many Chamber functions as well as sponsoring
events.
Weaknesses
Shortage of “Primary” Businesses: There is a general shortage of “Primary” or “Basic”
businesses as traditionally defined in economic development. These industrial or
manufacturing businesses are limited in Southlake for a variety of reasons; lack of rail
services, adequate zoning, triple-freeport exemptions, and are further limited by potential
development sites with residential adjacencies.
Saturation of Banks: The attractiveness of the average household incomes in Southlake
has drawn approximately 23 retail banks to the City. There is a widely held concern about
the long-term viability of this number of banks. There are almost no positive re-
development alternatives for closed bank locations.
Slowing Residential Growth: The City is approximately 80% developed residentially.
Growth during the 1990’s of approximately 16% has now slowed to less than 2%. Under
the scenario of “retail follows rooftops” there should be a recognition that the local demand
for selected types of businesses may be satisfied or certainly slowing.
Southlake, Texas
- Business Retention & Expansion Strategic Plan - Draft: February 24, 2009 - Page 22
Perceived Cost of Doing Business: Although rental rates and the costs of doing business
are similar to Grapevine, there may be a perception that the cost of doing business in
Southlake is greater than other area cities.
Opportunities
Merchant Associations: Although none exist currently in the City (other than the Chamber
of Commerce) there may be an opportunity for a formal or informal merchant association to
organize to either address particular issues or just stay informed to the betterment of all
businesses. The Downtown Grapevine Merchant’s Association may be a good example of
a successful local program.
Council / Business Meetings: There may be an opportunity for a periodic (quarterly?)
meeting between the Mayor and/or Councilmembers and local business leaders. Flower
Mound does a “12 at 12” business lunch where 12 businesses have lunch with the Mayor
and talk about various business aspects.
Threats
Westlake: Probably the most significant potential threat to the Southlake
business community is future development in Westlake. Potential
developments including corporate sites and retail development such as a
regional mall and/or power center, as well as big-box retail (Super-Target)
will likely draw some customers from Southlake, but more significantly will
provide the closer services needed to residents west of Southlake, thereby
reducing the customers to Southlake businesses.
Northwest Metroport Businesses: Historically
commercial growth has followed the residential
growth from the core of the DFW Metroplex
(Arlington, Grand Prairie, Fort Worth, Dallas) north
and west (in Tarrant County). This growth was evident by the growth wave proceeding
from Arlington / HEB, through Colleyville in the late 70’s and early 80’s, Southlake in the
1990’s and currently northwest of Southlake. New residential growth is a catalyst for new
business growth and this has been evidenced by the continued business growth in the
Northwest Metroport Chamber of Commerce (Haslet, Justin and Roanoke, and the towns of
Northlake, Trophy Club and Westlake). Business growth in these areas will provide their
residents with the services now patronized in Southlake.
Over-Development of Retail: Many other more mature cities (Plano, Carrollton, Coppell)
learned the hard way that they over-developed retail during their boom years. Given that
there are currently not adequate retail businesses west of the City, many of these residents
are likely currently patronizing Southlake businesses but will ultimately migrate to future
retail services closer to their residences.
Southlake, Texas
- Business Retention & Expansion Strategic Plan - Draft: February 24, 2009 - Page 23
Strategic Recommendations
(*Included in final recommendations)
1. *Recognize Business Leaders: The Chamber of Commerce has a long established
program recognizing a variety of business leaders in the Community. The City could easily
implement a program at a regular Council meeting that would recognize those leaders and
give them a few minutes to say something about their company. [Note: Due to the length of
time to prepare this Plan, this recommendation has already been implemented with a
presentation by the Chamber President to the City Council in April, 2008].
Southlake, Texas
- Business Retention & Expansion Strategic Plan - Draft: February 24, 2009 - Page 24
SWOT Analysis
Corporate Involvement
Strengths
Sabre Involvement: The regions largest employer, Sabre Holdings,
has been significantly involved in various community activities and
events. Examples of community programs include: Chamber Board
representation, extensive community volunteer programs and hours,
assistance and guidance with City Administration visioning and strategic direction
establishment, hosting of a virtual library and support of Sister City events.
Small Business Owners: As mentioned in previous sections, one of the strengths of the
Southlake business community is the involvement of principal owners of small businesses.
There are a significant number of professional service businesses in Southlake and many
of these have principles that are engaged in a variety of ways, either directly with the City or
through many Chamber programs.
Regional Involvement: Although not in Southlake,
Fidelity Investments has proven to be a considerable
supporter of the business community regionalized as the
114 West Corridor. They stepped up significantly with
the inaugural DFW 114 West initiative by not only
supporting the effort through advertising, but also by
hosting the first 114 West Business Forum at their
regional campus facility in Westlake. More recently they
have expressed a continued interest in supporting / hosting a second 114 West Business
Forum. With the additional 600,000 sf currently under construction, Fidelity Investments will
soon become the region’s largest employer.
Weaknesses
Limited Involvement: Although Sabre has proven to be a great corporate partner with the
City, there has been limited involvement from other corporate businesses. As an example,
Verizon Wireless has significant national marketing programs but has been more difficult to
engage in local business support programs and networking events.
Opportunities
Corporate / City Relationships: Although the City / Corporate relationships are all good,
continued efforts should be made to establish and enhance relationships between City
leaders and corporate executives. The Sabre / City relationship continues to grow. This
could be the catalyst for engaging more corporate entities directly with the City Council or
staff leadership.
Southlake, Texas
- Business Retention & Expansion Strategic Plan - Draft: February 24, 2009 - Page 25
Southlake Executives: There are significant numbers of business executives that live in
Southlake. There are likely many untapped opportunities related to this resource that
should be pursued.
Small Business Industry Groups: There is currently no venue for businesses within a
similar industry group to meet and mutually benefit from the sharing of information and
resources.
Threats
Westlake: Westlake and their primary development partner, Hillwood, have significant
properties to accommodate corporate development. Over time, there will be considerable
corporate development in Westlake.
Alliance: To a lesser extent, but realistic and potentially serious, is a recent emphasis by
Hillwood to develop corporate multi-tenant office along their I-35W properties.
Strategic Recommendations
(*Included in final recommendations)
1. *Continue to Strengthen Sabre / City Partnerships: Although continuing to grow stronger,
this strategic effort is an opportunity to identify the Sabre / City partnership as a critical part
of the City’s business retention and expansion program.
2. *Develop City / Corporate Alliance Program: Utilizing the City / Sabre relationship as a
model, establish a program that identifies potential corporate partners and nurtures the
relationship to the benefit of both parties.
Southlake, Texas
- Business Retention & Expansion Strategic Plan - Draft: February 24, 2009 - Page 26
SWOT Analysis
Small Businesses
Strengths
Principle’s Involvement: There are many small businesses in the City that are represented
by Principle owners who are actively involved in City activities, primarily through the
Chamber.
Chamber Networking Opportunities: Many of the small businesses in the City have found
that the Chamber of Commerce provides a good number and diversity of networking
opportunities. This is probably the primary means of gaining exposure for a small business
in the City.
Weaknesses
Banking Relationships: It is somewhat difficult for small businesses to establish banking
relationships with local banks. As well, the typical fee structures for businesses can be a
challenge for the smaller businesses.
Financial Sophistication: An absence of financial education across a broad variety of
disciplines limits the potential of many small businesses.
Lack of Franchise / Corporate Structure: Typically a small business does not benefit from
the resources and administrative systems enjoyed by bigger businesses. Where bigger
businesses or franchises have standard marketing or administrative support, often the small
business owner manages or implements programs themselves.
Opportunities
Mentoring / Nurturing Programs: There is likely potential for developing programs where
larger corporations have personnel who would be interested in mentoring smaller business
entrepreneurs. Some larger corporations have specific goals toward community
contributions and this might be a win-win if the right matches can be identified. Existing
business leaders may also offer services as speakers for particular topics.
Business Blogs: Small business owners may be receptive to participation in an
appropriately administered business blog for small businesses. This might provide a forum
for small businesses to raise issues collectively that they might not otherwise raise.
Business Resource Center: Small business do not have a venue or forum to avail
themselves of business resources. Potentially could include continuing education
opportunities or mentoring by more established business leaders.
Southlake, Texas
- Business Retention & Expansion Strategic Plan - Draft: February 24, 2009 - Page 27
Threats
Start-up Costs: Probably the most critical time period for a small business is the first 18-24
months in operation. If they cannot gain traction through various networking venues or
success with targeted clients, they will likely fail.
Strategic Recommendations
(*Included in final recommendations)
1. Identify Small Business Programs: Efforts should be made to continue to identify and
implement programs that can benefit small businesses.
Southlake, Texas
- Business Retention & Expansion Strategic Plan - Draft: February 24, 2009 - Page 28
SWOT Analysis
Professional Service Businesses
Strengths
Chamber Participation: Many of the professional service businesses (banks, financial
advisors, accounting, insurance, etc.) are actively involved in the Chamber. These
businesses are represented by individuals who spend significant time supporting the overall
commerce of the City.
Medical: Probably the strongest element of professional service growth in the City for the
past several years has been in the field of medical services. The practitioners who have
had a practice for years continue to grow, and there continue to be relocations from
throughout the Metroplex to the City. Recent announcements for major hospital and
medical office building components along S.H. 114 should continue this strength.
Weaknesses
Bank Saturation: There are a great number of retail banks in the City. It would seem that
growth in this sector would be difficult due to the difficulty of developing a sizable client
base. Of particular concern is the fragmentation of deposits causing the movement of
funds outside of the local market.
Focus Groups: Currently there are no focus groups dedicated to the interests of service
businesses.
Opportunities
Financial Services Involvement: Although there has been isolated involvement from
financial services businesses, there is the opportunity for more businesses to get involved.
In particular, a regional marketing effort (DBJ 114 West Supplement) was only supported by
Fidelity Investments, a regionally strong corporate ally.
Law Firms: There seems to be growing strength in legal services in Southlake. Existing
firms (e.g. Flynn, Campbell & Francis) appear to continue to be strong, and new firms (e.g.
Cantey & Hanger, Greg Jones) have established themselves and continue to add staff.
Threats
Saturation Beyond Demand: The desirability of Southlake as a place to live could draw
more professionals to establish businesses than can be supported by the demand for their
services.
Strategic Recommendations
(*Included in final recommendations)
1. Engage Participation: Continue to involve leaders of service businesses in E.D. Programs.
Southlake, Texas
- Business Retention & Expansion Strategic Plan - Draft: February 24, 2009 - Page 29
SWOT Analysis
Retail Businesses
Strengths
Regional Retail Market: The fact that S.H. 114 and F.M.
1709 (Southlake Blvd) are regional transportation corridors
that basically converge along the properties east of N.
Carroll Avenue, creates a trade area significantly larger
than Southlake residents alone.
Isolated Involvement: Some area retail businesses have shown strong and enduring
support for the Chamber and the greater Southlake business market.
Weaknesses
Retail Involvement in Chamber: Although the Chamber has significant business
involvement throughout the city, there are very few retail businesses actively engaged with
the Chamber. Some corporate policies restrict some entrepreneurial involvement.
Limited Labor Pool: There is a limited labor pool for retail businesses due to commuting
distances and competing interests reducing youth employment.
Opportunities
Develop Tourism Programs Supporting Retail: One of the primary draws for visitors to the
City are the retail venues. With the hiring of staff dedicated to enhancing tourism programs,
an emphasis could be placed on those programs that support existing retail businesses.
Furniture Cluster Cooperation: There is significant furniture retail presence in the City that
may present an opportunity for collaborative marketing. Recent announcements (Ethan
Allen, Weirs, Robb & Stucky) add more draw through the continued diversity of product and
overall magnetism of the cluster.
Roundtable Forums: Although the Chamber’s Retail Roundtable did not gain traction, there
may be the potential for a forum / roundtable engaging retail leaders in discussions
benefiting retail in the City. This could be evaluated through retail business visitations in
coming years.
Southlake, Texas
- Business Retention & Expansion Strategic Plan - Draft: February 24, 2009 - Page 30
Threats
Over-Development of Retail: Although Southlake has great strength as a regional retail
draw, and as well local developers estimate that as much as 70% of the retail customers
come from outside the City, there still is the potential to over-develop retail that can be
supported by the residents of the City as well as some portion outside the
City. Other suburban cities in the Metroplex (Carrollton, Plano, Coppell)
found that they overdeveloped retail during their boom years and now study
alternatives for redeveloping unsuccessful retail centers, typically into higher
density residential developments.
Westlake Retail: For several years Hillwood has announced that this would be the year for
completion of significant retail. Although no construction has begun, Hillwood is a
development group with the expertise and resources to eventually develop significant retail
in Westlake. Westlake also appears to have a long-term strategy of no ad-valorem tax,
preferring to rely on sales tax, and thereby necessitating significant retail development.
Strategic Recommendations
(*Included in final recommendations)
1. *Increase Local Business Reports for Retail: This popular program provides great
exposure to both the City Council as well as citizens via the cable channel. Increasing the
number of LBR’s would allow for additional exposure for retail businesses.
2. *Develop Tourism Programs Supporting Retail: One of the primary draws for visitors to the
City are the retail venues. With the hiring of staff dedicated to enhancing tourism programs,
an emphasis could be placed on those programs that support existing retail businesses.
Southlake, Texas
- Business Retention & Expansion Strategic Plan - Draft: February 24, 2009 - Page 31
SWOT Analysis
Restaurants
Strengths
Restaurant Diversity: There are approximately 100 dining
establishments currently in Southlake, representing over 15 types of
cuisine. The types of dining range from fast food / drive-thru, counter
service sit-down, and white tablecloth table service. This diversity
strengthens the regional draw and the overall strength of the
restaurants in the City.
Shopping & Dining Guide: The E.D. Dept. has produced a Shopping &
Dining Guide since September, 2000. A product of the business
database, this guide is professionally printed and currently includes
approximately 100 restaurants and 200 retailers. Approximately 60,000
copies of this guide printed annually are distributed to regional hotels
(via contract), DFW Airport rental car / ambassadors (via contract) as
well as significant distribution by the E.D. staff to many venues; large
area businesses, local and regional sporting events. This guide is often
requested by tourists / visitors to Southlake for their “goody bags”.
Catering Summary: The Catering
Summary has been produced by
the E.D. Department since 2003.
This summary is derived from the
Dept. business database and
includes approximately 50
restaurants that provide catering
services. Recent enhancements to the summary include hyperlinks within the text that
allow an immediate connection to the catering menu for the establishment.
Regional Attraction: Southlake continues to strengthen its position as a regional destination
for dining. With the great accessibility to the City from regional roadways, and the
continued diversity in restaurant offerings, we continue to see growth and patronage of
restaurants in the City.
Weaknesses
Mom-n-Pop Restaurants: With few exceptions (e.g. Sandella’s Café, Broadway Pizza,
Johnny B’s), the “Mom-n-Pop” locally owned restaurants have struggled in Southlake.
What the local owner restaurants lack in corporate marketing support is typically made up
by networking and personal relationships with customers or quality of food and service.
Residential Densities: Southlake has historically developed with low residential densities.
Although the area household incomes are high, the actual number of households, and the
families therein, is low. This low density could potentially jeopardize the market support for
restaurants in Southlake.
Southlake, Texas
- Business Retention & Expansion Strategic Plan - Draft: February 24, 2009 - Page 32
Lack of National Franchise Involvement: The national franchise restaurant may be
commercially successful but typically does not get involved with the Chamber of Commerce
or other community activities.
Restaurant Failures: Although there are many continued restaurant successes in the City,
there have also been a significant number of failures (e.g. Bacio Mio Italian Café, Baha
Fresh, Big Bowl, Boppas Pizza, Broadway Pizza, Burger King, Buster Burrito, Cactus
Flower, Camielles, Cheeseburger-Cheeseburger, Classic Café, Coffee Beanery, Coldstone
Creamery, Crawfish City, Genghis Grill, Jack Shaw’s, Just Java, Lover’s Eggroll, Me-n-
Ed’s, Marble Slab Creamery, McDonalds, Michael Anthony’s Steakhouse, Noble Roman’s
Pizza, Po Melvin’s, Quiznos, Red Lobster, Red Sage, Roly-Poly, Snookies, Southlake BBQ
and Southlake Tavern). Continued failures can erode the confidence and success of the
City’s restaurants.
Opportunities
Restaurant Forum: Although the Chamber’s Restaurant Roundtable did not get traction,
there may be an opportunity for a broader based forum to discuss issues of importance to
restaurant managers.
Website Enhancements: Currently on-going enhancements to the City’s website should
enhance the exposure of restaurants in the City.
Casual Family Restaurants: The Economic Development staff frequently hear of requests
for “affordable” family and convenience restaurants.
Threats
Over-Development of Restaurants: Although Southlake has great strength as a regional
restaurant draw, and as well local developers estimate that as much as 70% of the retail
and restaurant customers come from outside the City, there still is the potential to over-
develop restaurants that can be supported by the residents of the City as well as some
portion outside the City.
Strategic Recommendations
(*Included in final recommendations)
1. *Restaurant Visitations: Much could be gained by E.D. Staff annual or bi-annual visits to
restaurant managers, particularly those with some tenure in the City.
2. *Increase Local Business Reports for Restaurants: This popular program provides great
exposure to both the City Council as well as citizens via the cable channel. Increasing the
number of LBR’s would allow for additional exposure for restaurants.
3. *Develop Tourism Programs Supporting Restaurants: Along with retail, the availability of
restaurants is a distinct tourism draw. With the hiring of staff dedicated to enhancing
tourism programs, an emphasis could be placed on those programs that support existing
retail businesses.
Southlake, Texas
- Business Retention & Expansion Strategic Plan - Draft: February 24, 2009 - Page 33
SWOT Analysis
Manufacturing / Assembly / Distribution
Strengths
Airport Adjacency: The adjacency of DFW International Airport and Alliance Airports
provides for easy national or world-wide distribution of products manufactured or
assembled locally.
Highway / Rail Access: Although there is no rail access in Southlake, access via the
Alliance area is very close and easy to get to.
Existing Business Parks: The existing business parks (Commerce Business Park,
Cornerstone Business Park, North Davis Business Park) do have good occupancies,
diversity of building sizes, breadth of business types, etc.
Weaknesses
Limited Number of Businesses: There are a very limited number
of businesses in the City that would be classified as
manufacturing / assembly or distribution. Probably the largest
assembly business in the City is VarioSystems which
manufactures and assembles electronic components and then
distributes them throughout the world. This location is their
North American headquarters.
Lack of Triple-Freeport: The City and Tarrant County have both adopted the “Freeport”
exemption for inventoried goods meeting certain requirements but the CISD has not. The
Grapevine Colleyville ISD has adopted the exemption so there typically is more interest in
developing or leasing in the GCISD than in CISD. Although there are some GCISD
properties in Southlake, they are very limited and mostly developed.
Limited Political Support: Given the predominance of professional service businesses and
the lack of development property not adjacent to residential, there has been little political
support for this type of development in the City.
Employment Base: There is likely a shortage of workers for manufacturing or assembly
businesses in Southlake and the immediate vicinity due to the demographic make-up of the
City and region.
Opportunities
More Business Engagement: There are likely businesses in the City that engage in some
level of manufacturing / assembly or distribution that have not been identified. Efforts could
be made to locate these firms.
Southlake, Texas
- Business Retention & Expansion Strategic Plan - Draft: February 24, 2009 - Page 34
Targeted Forum Groups: Should enough companies be identified, there may be an
opportunity for an informal discussion group on issues of shared concern to these
businesses.
Champion Crossing: Champion Development has recently
completed a six-building business park called Champion
Crossing. Located at the northwest corner of S. Kimball and E.
Continental, the project will ultimately exceed 114,000 square
feet. This new product will provide for quality lease space for
manufacturing, assembly or distribution businesses.
Match Market Analysis: A typical business retention visit would identify products / materials
needed by a business as well as potential purchasers of products made or assembled.
Matching these needs and wants for each business may increase sales.
Adopt Triple-Freeport: The E.D. Staff has researched the issues related to CISD adopting
the Freeport Exemption in past years. At that time there were only two businesses in the
City utilizing the double-freeport exemptions in place. The first-year costs to CISD for
adopting the exemption were approximately $500. After the first year the “Robin-Hood”
impact neutralizes for basically no incremental difference on years going forward.
Threats
DFW Airport Development: As DFW Airport continues to emphasize the commercial
development opportunities offered on their properties, it will compete favorably against
many non-airport sites in the region.
Alliance Development: The Alliance development is clearly the
most competitive property in north Texas for industrial / assembly /
distribution type businesses. The only opportunity to compete
with Alliance is likely in the smaller lease space market that
doesn’t interest Hillwood.
Strategic Recommendations
(*Included in final recommendations)
1. *Engage Businesses: Visit the businesses in the City and discuss issues of importance to
them, obstacles to their success, and opportunities for assistance by the E.D. Staff.
Southlake, Texas
- Business Retention & Expansion Strategic Plan - Draft: February 24, 2009 - Page 35
SWOT Analysis
Hospitality / Hotel / Tourism
Strengths
Airport Adjacency: An obvious strength supporting hotels in
Southlake is the proximity of DFW International Airport and
Alliance Airport.
Hotel / City Staff Relationships: The Hilton hotel manager
and the E.D. Department staff have established a good
working relationship throughout the development and first
year of operation of the hotel. This relationship should
continue to strengthen as hotel occupancy tax revenues are
budgeted and implemented.
Weaknesses
Breadth and Diversity of Hotels: Currently Southlake is home to only one hotel, the Dallas /
Hilton – Southlake Town Square. Corporate businesses along the corridor desiring
different hotel products must use hotels in surrounding communities (Grapevine, Westlake,
Trophy Club) to house their visiting employees or guests.
Tourism Destinations: Other than the retail and restaurant opportunities mentioned
previously, there are no significant tourism destinations in the City.
Tourism Programs: Given that the City’s first hotel just opened in June 2007, we have
basically no experience or programs supporting tourism in the City.
Convention Venue: There is currently not a dedicated facility capable of hosting a variety of
conventions, regional education and other community events.
Opportunities
Hotel Occupancy Tax Programs: With the opening of the Hilton a new revenue source
based in hotel occupancy tax should provide for a diversity of programs, some of which
should directly benefit the hotel, tourism and convention industry in the City.
Additional Hotels: With the adjacency of DFW Airport and the completion in 2004 of S.H.
114, there is considerable interest from developers proposing additional hotels. The
challenge will be in identifying properties for hotels and the appropriate type of hotel for
these sites. This will be a primary topic in the S.H. 114 Economic Development Strategic
Plan.
Regional Tourism: Within our region there are significant tourism venues (e.g. Texas Motor
Speedway, Gaylord Texan, Great Wolf Lodge). There are likely many opportunities to both
learn from these successes and leverage them to include Southlake businesses.
Southlake, Texas
- Business Retention & Expansion Strategic Plan - Draft: February 24, 2009 - Page 36
Threats
Regional Hotels: There are a significant number of hotels in the greater airport region,
particularly in Grapevine and Irving / Las Colinas. To the west in Trophy Club, a Value
Place recently opened and a Residence Inn is being contemplated by developers.
Strategic Recommendations
(*Included in final recommendations)
1. *Dedicated Tourism Staffing: The hotel occupancy tax revenue will provide funds to
support tourism and the convention and hotel industry in the City. The most efficient
utilization of this revenue will be through the hiring of a staff member dedicated to manage
and implement programs funded by this revenue.
2. *Partner with Hotel Management: Continue to communicate with management and
marketing personnel from the Hilton. Look for ways to combine staff and resources to
leverage pooled funds more efficiently. Ensure program compatibility and no redundancy.
3. Hotel Market Study: A market study analyzing various aspects of hotel viability in
Southlake would be the most prudent way of evaluating short and long term support for the
hotel and convention industry in accordance with state laws regulating the Hotel Occupancy
Tax.
Southlake, Texas
- Business Retention & Expansion Strategic Plan - Draft: February 24, 2009 - Page 37
Strategic Recommendations Summary
Following is a summary of the strategic recommendations previously outlined. Where there are
multiple business types that will benefit from the strategy, recommendations previously outlined are
combined into one recommendation.
1. Focus on Business Responsibilities: Maintain business-related responsibilities as a priority for
the Economic Development staff. There is significant interest on the part of staff to emphasize
the retention and expansion programs and efforts, thereby supporting existing businesses in
the City.
2. Develop Business Visitation Program: The most significant enhancement to a Business
Retention & Expansion (BRE) program for the City would be the prioritization of visits with all
Southlake businesses on some regular basis, optimistically visiting all businesses within a 2-
year cycle.
a. Include all businesses in the rotation: Corporate, retail, restaurants, industry and service
b. Visit all businesses within a 2-year cycle
c. Verify accuracy of business data and contact information
d. Identify issues of importance to businesses, obstacles to their success, opportunities for
assistance.
3. Implement Monthly Local Business Reports: Expand the Local Business Report (LBR)
program to allow more businesses to get exposure within the City. Primarily this would focus
on retail and restaurants, but could be expanded to other businesses likely of interest to the
general citizenry.
a. Implement a monthly program allowing for twelve (12) businesses per year to get critical
exposure in the City.
b. Implement an annual program at a regular Council meeting that would recognize Chamber
of Commerce award recipients and give them a few minutes to say something about their
company.
4. Implement Tourism Programs through Staffing Dedicated to Hotel Occupancy Tax
Administration: Hire staff dedicated to the administration and implementation of the Hotel
Occupancy Tax revenues, particularly as it pertains to supporting tourism and the convention
and hotel industry resulting in increased patronage of Southlake businesses. Continue to
communicate with management and marketing personnel from the Hilton. Look for ways to
combine staff and resources to leverage pooled funds more efficiently. Ensure program
compatibility and eliminate any redundancies to optimize effectiveness of both agencies.
a. Hire staff dedicated to implementation of the Hotel Occupancy Tax programs
b. Develop programs supporting tourism and the City’s hotel and convention businesses
c. Develop programs supporting retail
d. Develop programs supporting restaurants
Southlake, Texas
- Business Retention & Expansion Strategic Plan - Draft: February 24, 2009 - Page 38
5. Strengthen City / Chamber Relationships: Though maybe not “strategic”, a strong working
partnership between the staffs of the City and the Chamber as well as leadership for both
allows for the many successes of both organizations.
a. Identify and pursue opportunities for the Southlake Chamber Staff and the City Economic
Development staff (as well as other staff) to work hand-in-hand together on projects and
issues.
b. Develop opportunities for the Southlake City Council to engage and interact with the
Southlake Chamber Board of Directors.
6. Strengthen City / Corporate Partnerships: Although continuing to grow stronger, this strategic
effort is an opportunity to identify the Sabre / City partnership as a critical part of the City’s
business retention and expansion program.
a. Utilizing the City / Sabre relationship as a model, Develop a Southlake Business Council
Program that identifies potential corporate partners and nurtures the relationship to the
benefit of both parties.
Southlake, Texas
- Business Retention & Expansion Strategic Plan - Draft: February 24, 2009 - Page 39
Appendix - A
Existing Zoning Map
Southlake, Texas
- Business Retention & Expansion Strategic Plan - Draft: February 24, 2009 - Page 40
Appendix - B
2025 Comprehensive Land Use Map
Southlake, Texas
- Business Retention & Expansion Strategic Plan - Draft: February 24, 2009 - Page 41