TULSA – Retail development consultants Retail Attractions LLC has landed its first Texas municipal contract, a 25-month deal to help the city of McAllen attract more specialty stores.
Retail Attractions owner Rickey Hayes expects this to jump-start a broad expansion into the Lone Star State, the land of his birth.
“We’ve wanted to get into Texas a long time,” said Hayes, who as Owasso’s economic director helped that northern Tulsa suburb add 2 million square feet of retail space through the last decade.
He left that post to launch Owasso-based Retail Attractions in 2007, working with developers, retailers and city leaders in building a stronger retail base.
McAllen represents the 20th city contract his firm has garnered, and the second out-of-state pact following its October 2009 deal with Jacksonville, Ark.
Kansas also promises growth potential, Hayes said, noting that talks are under way with two cities. But the Paris, Texas, native sees greater opportunity south of the Red River, where his firm has existing ties with developers and sites.
“I’m hopeful to have as many cities in Texas that we have in Oklahoma,” he said Wednesday. “We’ve got two others that we’ve been talking to for a few weeks.”
His goal is to finish 2010 with 30 cities in his portfolio.
“The economy’s kind of driven business to us,” said Hayes. “Cities need help.”
McAllen demonstrates a different side of that. While many Oklahoma cities have sought to bolster their retail base to also boost their sales tax revenue, McAllen sought out Hayes to broaden its retail inventory.
As an economic hub of the Rio Grande Valley, McAllen retailers handle $3.5 billion in annual sales. But while the border city counts a large number of discounters and general retailers, Mayor Richard Cortez said it lacks many specialty retailers and destination shops.
McAllen draws many of its customers from Mexico, noted Hayes. McAllen also attracts a large number of winter “snowbirds,” northern U.S. vacationers who seek out the warmer south Texas climate.
Retail Attractions is helping McAllen leaders identify and attract retailers fitting its economic climate.
Having enjoyed 25-percent revenue growth, Retail Attractions has grown to a six-person staff, half of those full time, with about five contractors. He projects revenues of $750,000 to $1 million this year.
“I believe that our niche is pretty solid and we are able to do some things,” said Hayes, pointing to his relationships with Glenpool, Claremore, Enid and other cities. “What we’re doing is not rocket science. We’re trying to connect the right people, build the right relationships and put the right brushes on the deal to work for both parties, cities and retailers.
“Even though the retail development process is a 30- to 60-month process, the cities that have understood that public-private partnerships are essential to bridge this competition gap and put their cities at the forefront, those cities are the ones that are seeing these deals come to fruition,” he said.