Modesto council decides against hiring retail expert

Modesto has decided against spending as much as $60,000 to hire a firm that helps cities attract more stores, restaurants and other retailers to help them boost their sales tax revenues.

The City Council on Tuesday rejected hiring Buxton to have it conduct a retail and market study and provide the city with other services. Only council members Jenny Kenoyer and Doug Ridenour voted in favor among the seven-member council to hire the company, which is based in Fort Worth, Texas.

The Downtown Modesto Partnership would have contributed $10,000 toward the work, reducing Modesto’s cost to no more than $50,000. Buxton’s work would have included an analysis of downtown and south and east Modesto.

A Vintage Faire Mall official spoke in favor of hiring Buxton because he said it would benefit the rest of the city. City Manager Jim Holgersson said hiring Buxton was a “proven strategy” that had worked in other cities. “We are very confident we will get more businesses that will more than pay for the services,” he said.

Buxton specializes in retail consumer analytics and has worked with more than 700 cities, counties, chambers of commerce and economic development corporations, as well as more than 2,000 retail clients, according to a city report. Its clients include San Jose, Livermore, Trader Joe’s and Target.

Those who supported hiring Buxton said it would accelerate the pace at which Modesto could attract more retailers and help the city stop its sales tax “leakage” (in which Modesto residents shop in surrounding communities and deprive the city of sale tax revenues), and said the firm has expertise Modesto lacks.

Those in opposition said the city’s economic development staff should be able to do much of this work, asked how retailers were now finding their way to Modesto, and said the timing was not right. Councilman Tony Madrigal questioned the power Buxton wields. The firm introduces its government clients to its retail clients based on research that shows they would be a good match. Madrigal said hiring Buxton means Modesto “would go to the front of the line, if you will.”

This story was originally published February 18, 2017 at 3:25 PM with the headline "Modesto council decides against hiring retail expert."