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Village of Lake in the Hills Community Development Department Memorandum nmr To: Board of Trustees Copy: Dan Olson, Director of Community Development From: George Hahne, Economic Development Coordinator Date: March 17, 2016 Subject: Focus Groups Attached are the focus group transcripts, overview and conclusions based on discussion, L recognized the general regard for the Village is very positive. Three particular points seem to resonate through all three groups. A need for an upscale restaurant, A need for a hotel. Costco is very highly thought of. All three groups thought the Village’s low crime rate was the result of police department outreach to the community. They felt a connection to the officers, A lot of people go to Crystal Lake first for automobile purchases. However there is dissatisfaction among higher priced foreign car owners who need to travel to purchase or service their cars. ‘The Randall Road retail corridor does seem to meet most people’s needs, but there was a significant amount of participants who wanted more. Smaller, more upscale apparel and shoe retail was pointed out as lacking, How does the above help us pursue the correct path to economic development? Along with our 2014 Hospitality Study and our 2015 Rt. 31 Feasibility Study we now have Lake in the Hills residents sharing their feelings about what they want in their community. Further, by asking where they prefer to shop (Mariano’s versus Aldi) we can offer a psychographic profile to potential retailers, restaurants, hotels and car dealers. Our focus group testimony clearly points to shopping and eating gaps and the willingness to utilize new options, Restaurants Tnow have a consistent voice that indicates this marketplace will support an upscale restaurant. I can include transcript documentation in my correspondence and presentations to potential restaurants. I think if we can create a compelling map visual that shows this trade area, which would include Bull Valley, Lakewood, Boulder Ridge, Barrington Hills, Trout Valley and selected neighborhoods in Crystal Lake and Algonquin, and include important demographic information such as average income and home value in those particular segments, we will get some attention. If people are already driving from Bull Valley to Schaumburg for fine dining, why not here? What we have done with this focus group is show there is a base here in Lake in the Hills with a demand for their product. Also, Lake in the Hills isin a nice position geographically to draw from the above areas, Through a networking opportunity I have made contact with the real estate manager at Lettuce Entertain You. I told him about the focus group and he said he would like to read the results. He also indicated that we could talk at the ICSC convention in Las Vegas. Hotel This topic created as much conversation as restaurants, The consistent mantra by virtually everyone was we have no place to put family during any holiday. There was also concem about where do business travelers stay when visiting local companies. ‘As pointed out in the HMI Hospitality Study, our trade area has only 630 rooms, far below what is needed. There was a wide selection of hotel choices ranging from Country Inn and Suites, Hilton Garden Inn and Courtyard by Marriott. Roughly one- third of the participants thought a banquet fecility connected to the hotel would be a ‘great idea. Again, this coincides with the Hospitality Study that indicated there is only one full-service hotel in the trade area. Providing proof of demand by quoting the focus groups dialog will help us get through some doors. Autos ‘When 1 followed up on our auto mall letters in the Fall I sensed that the upscale dealers did not understand our market. The dealers believed that anyone driving a BMW, Audi or Lexus had to live in or be in proximity to Naperville, Oakbrook, Schaumburg or the North Shore. One dealer actually said “you're in truck county out, there”. I will try and gain nameplate sales in McHenry County along with selected area demos and include that data with quotes from the focus groups in my next attempt to communicate with this group. The Melaniphy & Associates Rt. 31 Feasibility Study placed a high emphasis on targeting Acura, Audi, Mini Cooper and Carmax, Specialty Retail This niche will require some research because it has fewer chains and more one-to- two location stores. I'm sure that there is some type of association for these retailers. It could also mean working Google for a couple of days researching individual markets for prospects. For example, the former medical office building at the northeast corner of Crystal Lake and Algonquin Roads could be a good location for specialty type retail stores. What else did we leam? * Our shoppers are interested in value (based on cherry-picking grocery at

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