Effective city development planning doesn’t just rely on blueprints and budgets; it depends on how well cities and developers communicate.In this episode of Capital Rivers Connect: California Edition, CEO Greg Aguirre and Executive Vice President Matthew Tate pull back the curtain on the disconnect between public and private sector expectations and share what it takes to build successful partnerships that actually lead to development.
From misconceptions about retail recruitment to the role of incentives and data storytelling, the episode highlights how smarter, more strategic planning can help cities attract the right partners, streamline approvals, and bring long-term value to the community.
Why the Traditional Retail Recruitment Model Falls Short
One of the key takeaways from this episode is that “retail recruitment” is often misunderstood. While cities are eager to land new retailers, many efforts stall because they don’t align with developer realities or market timing. Cities may reach out to retailers directly without realizing that it’s often developers—with strong tenant relationships—who make deals possible.
Retail recruitment, as described by Matthew Tate, is more than outreach; it’s about sparking interest, telling a compelling story, and laying the groundwork for deals that may take years to come together. Understanding where recruitment fits into the broader process of city development planning is crucial to avoid wasted time and missed opportunities.
Development Starts With Economics, Not Aspirations
Another major theme of the episode is economic viability. Cities often envision projects that “look good” or fulfill aspirational goals—but if a site doesn’t pencil out financially, no amount of design ambition will make the project feasible. Developers must consider land costs, rents, vacancy rates, construction costs, and tenant credit—all long before a shovel hits the ground.
Greg Aguirre points out that cities often push for aesthetic upgrades or mixed-use configurations without understanding that many of these requests can make a project financially unviable. That’s why early and transparent dialogue is essential—when cities better understand pro formas and developers better understand community priorities, deals are more likely to succeed.
Data-Driven Storytelling: What Cities Should Really Be Doing
Raw data isn’t enough to attract developers or national retailers. What matters is the story behind the numbers. For example, cities that can demonstrate strong daytime populations, regional traffic patterns, or customer inflow from surrounding areas have an edge.
Tate emphasizes that development-ready cities package their data with context—like explaining how a specific corridor sees a surge in traffic during commute hours or how mobile analytics show customers driving 15+ miles to shop. This kind of storytelling transforms generic demographic reports into compelling site selection arguments, especially when supported by data like our regional market reports.
What City Development Planning Requires
Being “development-ready” means more than just having land. Aguirre outlines two critical ways cities can support development before a deal even forms:
- Accurate and Fast Fee Estimates: Developers lose valuable time chasing disconnected agencies and unclear numbers. Cities that streamline this process are far more attractive.
- Clear Communication During Reviews: Delays and re-submissions kill deals. Cities that minimize review turns, communicate proactively, and coordinate cross-departmentally create a smoother path to entitlements.
Tate adds that development readiness also means internal alignment. Cities that clarify their economic goals—whether it’s tax revenue, job creation, or reshaping reputation—are better equipped to evaluate trade-offs, such as approving a car wash if it leads to higher-revenue co-tenants.
Incentives That Bridge the Financial Gap
Creative tools like fee deferrals, infrastructure cost sharing, and tax increment financing (TIF) can help close the gap between what’s economically viable and what the city wants to see built. Aguirre shares a recent success using a SKIP bond mechanism—usually reserved for large housing projects—to help cover impact fees on a retail deal.
These solutions aren’t one-size-fits-all, but they’re often overlooked. Cities that understand the capital stack and collaborate on incentive structures are more likely to see their development goals realized.
Listen to the full episode of Capital Rivers Connect to hear how better communication, clearer data, and shared goals improve city development planning.
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