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Ada looks to improve retail options



In a bid to streamline Ada’s efforts to attract more retailers, the Ada City Council approved a contract Monday with the consulting firm Retail Attractions.

The council voted 4-1 to approve the 12-month contract, with Councilman Bryan Morris casting the only “no” vote. The city will pay Retail Attractions $4,000 a month for its services, which will include researching the city’s trade area market and developing a plan for recruiting retailers.

The Owasso-based firm used to have a contract with the Ada Jobs Foundation, a nonprofit organization that promotes economic development in Ada, according to City Manager Cody Holcomb. Retail Attractions’ contract with the city is intended to streamline the process because the consultant would answer directly to the city.

The proposal prompted a series of questions from Morris, who wanted to know whether Retail Attractions would play a bigger part in the city’s recruiting efforts.

“Do you see your role becoming much more involved than what it was in just assisting Mike?” he said, referring to Ada Jobs’ president and CEO, Mike Southard.

Retail Attractions’ owner and CEO, Rickey Hayes, said his firm would do more of the legwork involved in recruiting retailers under the new contract.

“Actual on-the-ground time in Ada that didn’t occur under the former contract,” he said.

Morris said he was concerned that Retail Attractions’ relationships with other Oklahoma cities, including McAlester, could create conflicts of interest for the firm. He noted that Retail Attractions would advise Ada officials on possible incentives to lure retailers, but the firm’s other clients would receive the same kind of information.

“What happens in situations where you’re approaching these retail businesses, and they say, ‘Well, McAlester or Ada?’” he said. “I keep picking on McAlester, because that seems to be a pretty good example for purposes of these questions.

“I mean, how do you deal with that situation? How does Retail Attractions, your company, deal with that?”

Hayes said his firm provides information on both markets to potential developers and answers any questions they might have, but the final decision on where to locate would be up to the developer. He noted that Ada is a stand-alone market and would probably not have to compete with McAlester to attract retailers.

“As far as competing with McAlester, I don’t see an issue with tenants choosing one or the other,” he said. “Tenants like to do multiple units, and so they like to do as many units as possible over a growth plan and as many markets as possible. So I see it as an advantage rather than a disadvantage.”

When Morris pressed the point, Hayes said he did not see the conflict. He added that retailers take several factors — including available sites and the costs of development — into account when deciding where to set up shop.

“One vicinity may desire a tenant — a specific tenant — that’s looking at both your market and their market and feel compelled to do more incentives to get that particular retailer,” he said. “I have nothing to do with the council’s decision to provide incentives or not.”

Councilman Preston Draper wanted to know what would happen if the council were willing to offer a retailer up to $1 million in incentives but did not want to offer more than that amount.

“For the sake of argument, McAlester’s got the same thing. And they say, ‘OK, we’re willing to go to some point. How much is Ada willing to go to?” he said. “Or we say, ‘How much is McAlester willing to go to, because we want to up the ante?’ What do you do in that kind of circumstance?”

Hayes said his firm would provide that information, but the final decision on incentives belonged to the city and the retailer.

That question prompted Councilman Ben McFarlane to ask whether Retail Attractions would tell its other clients about any incentives Ada might offer to retailers.

“I think what they’re trying to get at, are you going to share that information with McAlester?” he said.

Hayes said he would not share that information with other clients courting the same business, but the developer would.

He also said: “I will only share the information you guys authorize me to share. You don’t last very long in this business if you don’t have the ability to keep a confidence. I mean, I’m saying that’s just a matter of fact.”