WS-A - WORK STUDY - WELLNESS DISTRICT

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ATTACHMENT 01. Introduction 'This study evaluates prevailing market conditions for the pursuit of a `wellness' focused economic development strategy for downtown Santa Ana. The study was commissioned by The California Endowment (TCE) and was implemented by The Next Practice Ltd (TNP) in coordination with the Santa Ana Building Healthy Communities initiative ( SABHC). Research support for both the quantitative and qualitative market studies was provided by MASdata. The related community workshops would not have been possible without the contributions made by elected officials and staff of the City of Santa Ana, staff of St. Joseph's Health, and the participating community leaders and residents of Santa Ana. TCE has made a 10 -year commitment to support initiatives in central Santa Ana, as well as thirteen other California communities, that together can improve health and wellness outcomes for lower income residents. The Next Practice has been advising this Building Healthy Communities initiative on possible strategies for commercial/retail cluster development to facilitate more convenient and affordable access for lower income residents to the mix of services, retail goods, and amenities needed to support their improved health and wellness outcomes. Prior to the commencement of this study, the SABHC arranged for The Next Practice to meet with members of the Santa Ana City Council and the Office of the City Manager, so as to coordinate its research with other studies and initiatives for downtown development. The Next Practice subsequently exchanged its research plans with an economic development advisor to the City Manager. The SABHC further ensured that City Council Members and municipal professional staff were invited to participate in a workshop, where the preliminary findings of the study were presented and deliberated. City officials and staff have been supportive of the research, and provided valuable comments and observations regarding the preliminary findings. The full and final findings and conclusions are now presented in this report. 02. Summary of Key Facts and Findings Downtown Santa Ana is already a destination for the purchase of `Wellness Goods and Services'. Groceries, meals and snacks, and pharmaceuticals and health aids are the top three sources of sales `surplus' in downtown Santa Ana. A sales surplus means that downtown retailers sell more than the total household demand for these types of merchandise by downtown residents. The estimated 2014 sales surplus for all Wellness Goods and Food Services in downtown Santa Ana is $67 million. From a commercial property performance perspective, downtown Santa Ana already has a local and regionally competitive function as a Wellness Goods and Services district. Sales of Wellness Goods and Food Services per leasable commercial area in downtown Santa Ana are already $1,774 per square foot (data based on large commercial properties), compared with $170 for the entire City of Santa Ana, and $368 for Orange County. A Wellness District economic development strategy could, in principle, further substantially increase sales per gross leasable area in downtown Santa Ana relative to other retail areas in the city and beyond. The greatest and most immediate potential for further Wellness Goods and Services sales growth in downtown Santa Ana is to improve offerings and to increase sales to the residents of central Santa Ana. Due to the number of households, their proximity, lower travel times to downtown, and the greater amount of time spent in or adjacent to downtown, the residents of central Santa Ana are by far the largest pool of available demand for increasing downtown sales of Wellness Goods and Services. This statement is substantiated by the three sales growth scenarios considered in this study. The \,•N t Practice WS—A-6 ta Ana Wellness District: A study of demand and supply for wellness goods and services