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Agenda 01/24/2023 Item #17E (Recommendation to approve Ordinance No.89-05 as amended)01/24/2023 EXECUTIVE SUMMARY Recommendation to approve Ordinance No. 89-05, as amended, the Collier County Growth Management Plan for the unincorporated area of Collier County, Florida, specifically amending the Future Land Use Element and Future Land Use Map and Map Series by changing the Land Use Designation of the property from Agricultural/Rural Designation, Rural Fringe Mixed Use District-receiving lands to Agricultural/Rural Mixed Use District, Basik Drive Storage Commercial Sub-district to allow outdoor storage for mobile and towable items Including automobiles, boats, RV’s, trailers, 350 outdoor storage spaces, and unlimited roofed or enclosed structures. The subject property is Located on the north side of Tamiami Trail East just west of Trinity Place in Sections 17 and 18, Township 51 South, Range 27 East, consisting of 9.47+ acres; furthermore, directing transmittal of the adopted amendment to the Florida Department of Economic Opportunity; providing for severability and providing for an effective date. [PL20210000045] (Adoption Hearing) OBJECTIVE: For the Board of County Commissioners (Board) to approve (adopt) the proposed small -scale Growth Management Plan (GMP) amendment to create a new subdistrict to permit the development of outdoor storage for mobile and towable items. CONSIDERATIONS: The subject petition is submitted as a small-scale comprehensive plan amendment (a/k/a Growth Management Plan Amendment - GMPA). As such, per Florida Statutes, the request is heard once only by the Collier County Planning Commission (CCPC) and the Board. If approved by the Board, the petition is transmitted to the Florida Department of Economic Opportunity (DEO). The GMP amendment requested is for approximately ±9.47 acres located on the north side of Tamia mi Trail East just west of Trinity Place in Section 17, Township 51, Range 27. Collier County, Florida. This petition seeks to amend the Future Land Use Element. The proposed Subdistrict text, as recommended for approval by the Collier County Planning Commission (CCPC), is in Ordinance Exhibit “A.” The process for adoption of a small-scale comprehensive plan amendment requires (in part) the following statutory standards be met [followed by staff analysis in bracketed and italicized text]. (1) A small-scale development amendment may be adopted under the following conditions: (a) The proposed amendment involves the use of 50 acres or fewer. [The proposed amendment pertains to a 9.47-acre property.] (b) The proposed amendment does not involve a text change to the goals, policies, and objectives of the local government’s comprehensive plan, but only proposes a land-use change to the future land-use map for site-specific small-scale development activity. However, text changes that relate directly to, and are adopted simultaneously with, the small-scale future land use map amendment shall be permissible under this section. [This amendment is for a site-specific Future Land Use Map change and directly related text changes.] (c) The property that is the subject of the proposed amendment is not located within an area of critical state concern unless the project subject to the proposed amendment involves the construction of affordable housing units meeting the criteria of s. 420.0004 (3) and is located within an area of critical state concern designated by s. 380.0552 or by the Administration Commission pursuant to s. 380.05(1). [The subject property is not within an Area of Critical State Concern.] (4) Comprehensive plans may only be amended in such a way as to preserve the internal consistency of the plan pursuant to s. 163.3177. [Internal consistency will be maintained between and among elements if the amendment is approved.] 17.E Packet Pg. 1298 01/24/2023 Based on the review of this small-scale GMP amendment petition, including the supporting data and analysis, the staff makes the following findings and conclusions: • The purpose of this GMPA and companion PUDZ zoning petition is to permit the development of outdoor storage for mobile and towable items • There are no adverse environmental impacts as a result of this petition since the property was previously developed as a parking area. • No historic or archaeological sites are affected by this amendment. • There are no concerns about impacts upon other public infrastructure. • The use is generally compatible with surrounding development based on the high-level review conducted for a GMP amendment. The documents provided for the amendment support the proposed changes to the FLUM. The complete staff analysis of this petition is provided in the CCPC Staff Report. FISCAL IMPACT: The cost to process, review, and advertise this petition was borne by the petitioner via application and advertisement fees. Therefore, there are no fiscal impacts to Collier County as a result of the adoption of this amendment. GROWTH MANAGEMENT IMPACT: Adoption of the proposed amendment by the Board for transmittal to the Florida Department of Economic Opportunity (DEO) will commence the thirty-day (30) challenge period for any affected person. Provided the small-scale development amendment is not challenged, it shall become effective thirty-one (31) days after receipt by DEO. LEGAL CONSIDERATIONS: This Growth Management Plan (GMP) amendment is authorized by, and subject to the procedures established in, Chapter 163, Part II, Florida Statutes, The Community Planning Act, and by Collier County Resolution No. 12-234, as amended. The Board should consider the following criteria in making its decision: “plan amendments shall be based on relevant and appropriate data and an analysis by the local government that may include but not be limited to, surveys, studies, community goals and vision, and other data available at the time of adoption of the plan amendment. To be based on data means to react to it appropriately and to the extent, necessary indicated by the data available on that particular subject at the time of adoption of the plan or plan amendment at issue.” Section 163.3177(1)(f), FS. In addition, Section 163.3177(6)(a)2, FS provides that FLUE plan amendments shall be based on surveys, studies, and data regarding the area, as applicable including: a. The amount of land required to accommodate anticipated growth. b. The projected permanent and seasonal population of the area. c. The character of undeveloped land. d. The availability of water supplies, public facilities, and services. e. The need for redevelopment, including the renewal of blighted areas and the elimination of non - conforming uses which are inconsistent with the character of the community. f. The compatibility of uses on lands adjacent to or closely proximate to military installations. g. The compatibility of uses on lands adjacent to an airport as defined in s. 330.35 and consistent with s. 333.02. h. The need to modify land uses and development patterns with antiquated subdivisions. i. The discouragement of urban sprawl. j. The need for job creation, capital investment, and economic development that will strengthen and diversify the community’s economy. And FLUE map amendments shall also be based upon the following analysis per Section 163.3177(6)(a)8.: a. An analysis of the availability of facilities and services. b. An analysis of the suitability of the plan amendment for its proposed use considering the character of the undeveloped land, soils, topography, natural resources, and historic resources on site. c. An analysis of the minimum amount of land needed to achieve the goals and requirements of this 17.E Packet Pg. 1299 01/24/2023 section. This item is approved as to form and legality. It requires an affirmative vote of four for approval because this is an adoption hearing. [HFAC] STAFF RECOMMENDATION TO THE COLLIER COUNTY PLANNING COMMISSION: The CCPC forward petition PL20210000045 to the Board with a recommendation of approval. COLLIER COUNTY PLANNING COMMISSION (CCPC) RECOMMENDATION: The CCPC heard Petition PUDZ-PL20210000045, Basik Storage Commercial Subdistrict GMPA, on December 1, 2022. Three members of the public spoke with concerns about the intensification of the uses in the area, compatibility of the outdoor storage at the Trinity Place neighborhood gateway, and questions about the perimeter wall and buffer plantings. After discussion of these issues, the CCPC voted unanimously to forward this petiti on to the Board with a recommendation of approval subject to the following conditions, which have been incorporated in the Draft PUD Ordinance: - In Exhibit A, List of Permitted Uses, the allowance to seek comparable and compatible use determinations applies to Tract A only. This ensures the use of Tract B will be limited to the outdoor storage as proposed and as described in the corresponding GMP language. - The minimum 7-foot wall enclosing the outdoor storage along US 41 and Trinity Place will be an opa que concrete-style wall. - In Exhibit F, List of Development Commitments, Tract B lighting is specified to be limited to a height of 20 feet and dark sky compliant. Maintenance of vehicles or flushing of boat motors on Tract B is prohibited from 9:00 p.m. until 8 a.m. daily. Access to Trinity Place shall be gated and access will be limited to emergency vehicles only. Overnight occupancy of mobile or towable items or structures is prohibited. RECOMMENDATION: To adopt the Ordinance and transmit petition PL20210000045 to the Florida Department of Economic Opportunity. Prepared by: Parker Klopf, Senior Planner, Zoning Division ATTACHMENT(S) 1. Ordinance - 121522 (PDF) 2. 2021-0045 staff report final 11-15-22 (PDF) 3. Affidavit of Posting 11092022 (PDF) 4. [Linked] Market Study Report (PDF) 5. Exhibit A (PDF) 6. legal ad - agenda IDs 24133 & 24102 (PDF) 17.E Packet Pg. 1300 01/24/2023 COLLIER COUNTY Board of County Commissioners Item Number: 17.E Doc ID: 24133 Item Summary: Recommendation to approve Ordinance No. 89-05, as amended, the Collier County Growth Management Plan, specifically amending the Future Land Use Element and Future Land Use Map and Map Series by changing the Land Use Designation of the property to Agricultural/Rural Mixed Use District, Basik Drive Storage Commercial Sub-district to allow outdoor storage for mobile and towable items Including automobiles, boats, RV’s, trailers, 350 outdoor storage spaces, and unlimited roofed or enclosed structures. Furthermore, directing transmittal of the adopted amendment to the Florida Department of Economic Opportunity; providing for severability and providing for an effective date. (This is a companion to item 17F) Meeting Date: 01/24/2023 Prepared by: Title: – Zoning Name: Parker Kloph 12/22/2022 2:00 PM Submitted by: Title: Zoning Director – Zoning Name: Mike Bosi 12/22/2022 2:00 PM Approved By: Review: Growth Management Department Diane Lynch Growth Management Department Completed 12/28/2022 5:09 PM Zoning James Sabo Additional Reviewer Completed 12/29/2022 4:18 PM Zoning Mike Bosi Division Director Completed 01/03/2023 8:52 AM Growth Management Department Mike Bosi Growth Management Completed 01/03/2023 10:36 AM County Attorney's Office Heidi Ashton-Cicko Level 2 Attorney of Record Review Completed 01/04/2023 12:16 PM Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Completed 01/04/2023 12:22 PM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 01/04/2023 1:55 PM Office of Management and Budget Laura Zautcke Additional Reviewer Completed 01/12/2023 6:26 PM County Manager's Office Ed Finn CMO Completed 01/17/2023 4:44 PM County Manager's Office Amy Patterson Level 4 County Manager Review Completed 01/18/2023 2:53 PM Board of County Commissioners Geoffrey Willig Meeting Pending 01/24/2023 9:00 AM 17.E Packet Pg. 1301 17.E.1 Packet Pg. 1302 Attachment: Ordinance - 121522 (24133 : PL20210000045 Basik Storage Commercial Subdistrict GMP Amendment (GMPA)) 17.E.1 Packet Pg. 1303 Attachment: Ordinance - 121522 (24133 : PL20210000045 Basik Storage Commercial Subdistrict GMP Amendment (GMPA)) 17.E.1 Packet Pg. 1304 Attachment: Ordinance - 121522 (24133 : PL20210000045 Basik Storage Commercial Subdistrict GMP Amendment (GMPA)) 17.E.1 Packet Pg. 1305 Attachment: Ordinance - 121522 (24133 : PL20210000045 Basik Storage Commercial Subdistrict GMP Amendment (GMPA)) 17.E.1 Packet Pg. 1306 Attachment: Ordinance - 121522 (24133 : PL20210000045 Basik Storage Commercial Subdistrict GMP Amendment (GMPA)) 17.E.1 Packet Pg. 1307 Attachment: Ordinance - 121522 (24133 : PL20210000045 Basik Storage Commercial Subdistrict GMP Amendment (GMPA)) 17.E.1 Packet Pg. 1308 Attachment: Ordinance - 121522 (24133 : PL20210000045 Basik Storage Commercial Subdistrict GMP Amendment (GMPA)) PL20220000045 1 STAFF REPORT COLLIER COUNTY PLANNING COMMISSION FROM: GROWTH MANAGEMENT DEPARTMENT, ZONING DIVISION, COMPREHENSIVE PLANNING SECTION HEARING DATE: DECEMBER 1, 2022 SUBJECT: PL20210000045; GROWTH MANAGEMENT PLAN AMENDMENT (GMPA) BASIK STORAGE COMMERCIAL SUBDISTRICT COMPANION TO: PL2022000046 BASIK STORAGE (PUDZ) ELEMENTS: FUTURE LAND USE ELEMENT–AGRICULTURAL/RURAL DESIGNATION – RURAL FRINGE MIXED-USE RECEIVING AGENT/APPLICANT: Agent: D. Wayne Arnold, AICP Q. Grady Minor & Associates, P.A. 3800 Via Del Rey Naples, FL, 34102 Richard D. Yovanovich, Esq. Coleman, Yovanovich & Koester, P.A. 4001 Tamiami Trail N., Suite 300 Naples, FL 34103 Owner: GSI Naples 220 Basik Drive LLC 6905 Morrison Blvd. Suite 250 Charlotte NC 28211 GEOGRAPHIC LOCATION: The subject property is ±9.47 acres located on the north side of Tamiami Trail East just west of Trinity Place in Section 17, Township 51, Range 27. 17.E.2 Packet Pg. 1309 Attachment: 2021-0045 staff report final 11-15-22 (24133 : PL20210000045 Basik Storage Commercial Subdistrict GMP Amendment (GMPA)) PL20220000045 2 17.E.2Packet Pg. 1310Attachment: 2021-0045 staff report final 11-15-22 (24133 : PL20210000045 Basik Storage Commercial PL20220000045 3 REQUESTED ACTION: The petitioner is requesting that the Collier County Planning Commission (CCPC) consider an application to amend the future land use designation from an Agricultural Designation to a new subdistrict called the Basik Drive Storage Commercial Subdistrict to permit the development of outdoor storage for mobile and towable items. The petitioner’s proposed GMP Amendment is attached as Exhibit “A” Ordinance 11-07- 22. PURPOSE/DESCRIPTION OF PROJECT: This petition seeks to rezone the property to permit the development of outdoor storage for mobile and towable items such as automobiles, boats, RVs, trailers, and similar personal recreation items EXISTING CONDITIONS: Subject Property: The vacant subject property is ±9.47 acres zoned of Agricultural (A) and is designated Agricultural, Rural Fringe Receiving on the Future Land Use Map. Surrounding Lands: North: Future Land Use Designation; Agricultural Designation with Receiving Lands of the Rural Fringe Mixed Use District Zoned; Travel Trailer-Recreational Vehicle Campground District (TTRVC). Land Use; Storage Facility. East: Future Land Use Designation; Agricultural Designation with Receiving Lands Subdistrict of the Rural Fringe Mixed Use District Overlay. Zoned Agricultural (A). Land Use; Single Family Residential. South: Future Land Use Designation; Agricultural Designation with the Neutral Subdistrict of the Rural Fringe Overlay. Zoned; Marco Shores/Fiddlers Creek PUD. Land Use; Single Family Residential. West: Future Land Use Designation; Agricultural Designation with Receiving Lands Subdistrict of the Rural Fringe Mixed Use District Overlay. Zoned; Commercial Intermediate (C-4). Land Use; Self Storage Facility. In summary, the existing and planned land uses in the larger surrounding area are primarily similar uses and low-density single-family residences. BACKGROUND AND ANALYSIS: The subject site was originally developed as a parking area for the Big Cypress Market Place in 2007 as an accessory parking area subject to Site Development Plan (SDP) 99 -758 and Parking Exemption (PE) 07- 332. According to the Future Land Use Map of the Growth Management Plan, the subject property lies within the Rural Fringe Mixed Use Overlay. The designation of the tract to the northwest of the subject property as C-4 dates back to Ordinance 88-61 which rezoned the property from A-2 to C-4. On February 13th, 2018, a conditional use was approved on the property adjacent to the subject property under resolution 18-025 to permit self-storage in the old Big Cypress Market Place building to use the subject property for outdoor storage. Unfortunately, the original parking exemption limited the use of the parking area for the customers of the Flea Market not as an outdoor storage area hence the need for this petition. The Applicant is formally requesting a Small-Scale Growth Management Plan Amendment, consisting of a site-specific amendment to the Agricultural, Rural Fringe Mixed Use Subdistrict, to also allow the land uses, listed below, through the planned unit development rezone process. The ability to rezone the subject property to a PUD will allow the development of outdoor storage for mobile and towable items such as automobiles, boats, RVs, trailers, and similar personal recreation items within a portion of the Basik Drive Storage CPUD. 17.E.2 Packet Pg. 1311 Attachment: 2021-0045 staff report final 11-15-22 (24133 : PL20210000045 Basik Storage Commercial Subdistrict GMP Amendment (GMPA)) PL20220000045 4 The proposed amendment was justified by a market study prepared by Self Storage 101 which highlighted the need for storage in the area. The study noted market vacancy, population density, income levels, and population growth projections to justify the proposed storage facility. The applicant has common ownership over both the subject property as well as the existing building adjacent to the proposed subdistrict and has submitted a companion Planned Unit Development Rezone (PUDZ) to unify both properties under one zoning designation. The proposed companion PUDZ is intended to allow outdoor storage as it relates to the existing and already approved facility to the northwest. CRITERIA FOR GMP AMENDMENTS FLORIDA STATUTES: Data and analysis requirements for comprehensive plans and plan amendments are noted in Chapter 163, F.S., specifically as listed below. Section 163.3177(1)(f), Florida Statutes: (f) All mandatory and optional elements of the comprehensive plan and plan amendments shall be based upon relevant and appropriate data and an analysis by the local government that may include, but not be limited to, surveys, studies, community goals and vision, and other data available at the time of adoption of the comprehensive plan or plan amendment. To be based on data means to react to it appropriately and to the extent, necessary indicated by the data available on that particular subject at the time of adoption of the plan or plan amendment at issue. 1. Surveys, studies, and data utilized in the preparation of the comprehensive plan may not be deemed a part of the comprehensive plan unless adopted as a part of it. Copies of such studies, surveys, data, and supporting documents for proposed plans and plan amendments shall be made available for public inspection, and copies of such plans shall be made available to the public upon payment of reasonable charges for reproduction. Support data or summaries are not subject to the compliance review process, but the comprehensive plan must be clearly based on appropriate data. Support data or summaries may be used to aid in the determination of compliance and consistency. 2. Data must be taken from professionally accepted sources. The application of a methodology utilized in data collection or whether a particular methodology is professionally accepted may be evaluated. However, the evaluation may not include whether one accepted methodology is better than another. Original data collection by local governments is not required. However, local governments may use original data so long as methodologies are professionally accepted. 3. The comprehensive plan shall be based upon permanent and seasonal population estimates and projections, which shall either be those published by the Office of Economic and Demographic Research or generated by the local government based upon a professionally acceptable methodology. The plan must be based on at least the minimum amount of land required to accommodate the medium projections as published by the Office of Economic and Demographic Research for at least a 10-year planning period unless otherwise limited under s. 380.05, including related rules of the Administration Commission. Absent physical limitations on population growth, population projections for each municipality, and the unincorporated area within a county must, at a minimum, be reflective of each area’s proportional share of the total county population and the total county population growth. Section 163.3177(6)(a)2. Florida Statutes: 2. The future land use plan and plan amendments shall be based upon surveys, studies, and data regarding the area, as applicable, including: a. The amount of land required to accommodate anticipated growth. b. The projected permanent and seasonal population of the area. c. The character of undeveloped land. 17.E.2 Packet Pg. 1312 Attachment: 2021-0045 staff report final 11-15-22 (24133 : PL20210000045 Basik Storage Commercial Subdistrict GMP Amendment (GMPA)) PL20220000045 5 d. The availability of water supplies, public facilities, and services. e. The need for redevelopment, including the renewal of blighted areas and the elimination of nonconforming uses which are inconsistent with the character of the community. f. The compatibility of uses on lands adjacent to or closely proximate to military installations. g. The compatibility of uses on lands adjacent to an airport as defined in s. 330.35 and consistent with s. 333.02. h. The discouragement of urban sprawl. i. The need for job creation, capital investment, and economic development that will strengthen and diversify the community’s economy. j. The need to modify land uses and development patterns within antiquated subdivisions. Section 163.3177(6)(a)8. Florida Statutes: (a) A future land use plan element designating proposed future general distribution, location, and extent of the uses of land for residential uses, commercial uses, industry, agriculture, recreation, co nservation, education, public facilities, and other categories of the public and private uses of land. The approximate acreage and the general range of density or intensity of use shall be provided for the gross land area included in each existing land use category. The element shall establish the long-term end toward which land use programs and activities are ultimately directed. 8. Future land use map amendments shall be based upon the following analyses: a. An analysis of the availability of facilities and services. There are sufficient county services available for this low-impact use. b. An analysis of the suitability of the plan amendment for its proposed use considering the character of the undeveloped land, soils, topography, natural resources, and historic resources on site. This project is located on previously developed land and the proposed use is suitable. c. An analysis of the minimum amount of land needed to achieve the goals and requirements of this section. There is sufficient land to achieve the goal. The petitioner must provide appropriate and relevant data and analysis to address the statutory requirements for a Plan Amendment. Market Study Report referenced above. NEIGHBORHOOD INFORMATION MEETING (NIM) NOTES: The applicant conducted a NIM on March 16, 2022, at the South Regional Library, Meeting Room A, 8065 Lely Cultural Parkway. The meeting commenced at approximately 5:30 p.m. and ended at 5:40 p.m. The agent explained the request for the proposed PUD rezoning. There was only one member of the public attending. The attendee asked about the timing of development and expressed that it was good to see activity on the site. Three participants attended virtually by ZOOM, but none expressed any comment. FINDINGS AND CONCLUSIONS: (FINDINGS PER 163.3177(6)(A)2 A.—J.) • The market study provided by Self Storage 101 justifies the need for a storage facility in this location due to market vacancy, population density, income levels, and population growth projections to justify the proposed storage facility. • There are no adverse environmental impacts as a result of this petition. 17.E.2 Packet Pg. 1313 Attachment: 2021-0045 staff report final 11-15-22 (24133 : PL20210000045 Basik Storage Commercial Subdistrict GMP Amendment (GMPA)) PL20220000045 6 • No historic or archaeological sites are affected by this amendment. • There are no utility-related concerns as a result of this petition. • There are no concerns about impacts on other public infrastructure. • There are no transportation or utility-related concerns as a result of this petition. • The use is generally compatible with surrounding development based upon the high-level review conducted for a GMP amendment and has co-existed with surrounding development for many, many years. Environmental Findings: The subject property is 9.47 acres. The property has been historically cleared for agricultural purposes and was field verified by staff during the review of the Planned Unit Development (PUD) for the project. The project is currently zoned Agriculture, Rural Fringe Mixed Use Receiving overlay. The proposed GMP amendment will not affect the requirements of the Conservation and Coastal Management Element (CCME) of the GMP. There is no native vegetation or listed species present on-site; therefore, the petition meets the requirements of CCME Policy 6.1.1, Policy 7.1.1, and section 3.05.07 of the LDC. Environmental Services staff recommends approval. LEGAL CONSIDERATIONS: This Staff Report was reviewed by the County Attorney’s Office on November 15, 2022. The criteria for GMP amendments to the Future Land Use Element are in Sections 163.3177(1)(f) and 163.3177(6)(a)2, Florida Statutes. The criteria for changes to the Future Land Use Map is in Section 163.3177(6)(a)8, Florida Statutes [HFAC] STAFF RECOMMENDATION: Staff recommends the Collier County Planning Commission forward petition PL20220000045 Basik Commercial Subdistrict GMPA to the Board of County Commissioners with a recommendation to approve and adopt and transmit to the Florida Department of Economic Opportunity and other statutorily required agencies. 17.E.2 Packet Pg. 1314 Attachment: 2021-0045 staff report final 11-15-22 (24133 : PL20210000045 Basik Storage Commercial Subdistrict GMP Amendment (GMPA)) 17.E.3 Packet Pg. 1315 Attachment: Affidavit of Posting 11092022 (24133 : PL20210000045 Basik Storage Commercial Subdistrict GMP Amendment (GMPA)) PL20210000045 – Basik Drive Storage Commercial Subdistrict; and PL20210000046 – Basik Drive Storage CPUD. Posted Hearing Signs – 11/09/2022 17.E.3 Packet Pg. 1316 Attachment: Affidavit of Posting 11092022 (24133 : PL20210000045 Basik Storage Commercial Subdistrict GMP Amendment (GMPA)) Basik Drive Storage Commercial Subdistrict (PL20210000045) Text underlined is added; text struck through is deleted; *** = text break Page 1 of 2 Exhibit A Amendment Language Revise the FUTURE LAND USE ELEMENT *** *** *** *** *** Text break *** *** *** *** *** TABLE OF CONTENTS *** *** *** *** *** Text break *** *** *** *** *** * FUTURE LAND USE MAP SERIES 140 *** *** *** *** *** Text break *** *** *** *** *** * Basik Drive Storage Commercial Subdistrict Map *** *** *** *** *** Text break *** *** *** *** *** II. IMPLEMENTATION STRATEGY [beginning page 9] GOALS, OBJECTIVES AND POLICIES *** *** *** *** *** Text break *** *** *** *** *** Policy 1.6: [beginning page 10] The AGRICULTURAL/RURAL Future Land Use Designation shall include Future Land Use Districts and Subdistricts for: A. AGRICULTURAL/RURAL ‒ MIXED USE DISTRICT 1. Rural Commercial Subdistrict 2. Corkscrew Island Neighborhood Commercial Subdistrict 3. Basik Drive Storage Commercial Subdistrict *** *** *** *** *** Text break *** *** *** *** *** II. AGRICULTURAL/RURAL DESIGNATION [beginning page 72] *** *** *** *** *** Text break *** *** *** *** *** 17.E.5 Packet Pg. 1317 Attachment: Exhibit A (24133 : PL20210000045 Basik Storage Commercial Subdistrict GMP Amendment (GMPA)) Basik Drive Storage Commercial Subdistrict (PL20210000045) Text underlined is added; text struck through is deleted; *** = text break Page 2 of 2 B. Agricultural/Rural Mixed Use District [beginning page 73] *** *** *** *** *** Text break *** *** *** *** *** 3. Basik Drive Storage Commercial Subdistrict [page 75] This Subdistrict consists of 9.47+/- acres and is located on the north side of Tamiami Trail East (U.S. 41) within the Basik Drive Storage Commercial Planned Unit Development (CPUD). The purpose of the subdistrict is to permit development of outdoor storag e for mobile and towable items such as automobiles, boats, RV’s, trailers, and similar personal recreation items within a portion of the Basik Drive Storage CPUD. The Basik Drive Storage CPUD shall include specific development standards for the proposed c overed outdoor storage facility. Development within the Subdistrict shall be subject to the following: a. The maximum number of outdoor storage spaces shall be 350. b. A minimum 20 foot wide type ‘B’ buffer shall be provided along the U.S. 41 and Trinity Place road frontages. c. Roofed or enclosed storage structures may not exceed a height of 20 feet. *** *** *** *** *** Text break *** *** *** *** *** FUTURE LAND USE MAP SERIES [beginning page 148] *** *** *** *** *** Text break *** *** *** *** *** Basik Drive Storage Commercial Subdistrict 17.E.5 Packet Pg. 1318 Attachment: Exhibit A (24133 : PL20210000045 Basik Storage Commercial Subdistrict GMP Amendment (GMPA)) COLLIER BLVDTURNER RIVER ROADSR 29INTE RSTAT E 7 5 IMMOKALEE RD OIL WELL RD COLLIER BLVDTAMIAMI TRL E CR 846 SR 82 LIVINGSTON RDSR 29 NSAN MARCO RDTAMIAMI TRL NDAVIS BLVDGOODLETTE RD NPINE RIDGE RD EVERGLADES BLVD NRADIO RD GOLDEN GATE PKY DESOTO BLVD SLOGAN BLVD NSANTA BARBARA BLVDDESOTO BLVD NVANDERBILT BEACH RD GOLDEN GATE BLVD EVANDERBILT DREVERGLADES BLVD SAIRPORT PULLING RD CORKSCREW RDGOLDEN GATE BLVD W COPELAND AVE S9TH ST NS 1ST STN 15TH STB A L D E A G L E D R N BARFIELD DR GREEN BLVDOLD US 41LAKE TRAFFORD RD RATTLESNAKE HAMMOCK RD WILSON BLVD NN COLLIER BLVDS BARFIELD DRCOUNTY BARN RDS COLLI ER BLVDBONITA BEACH RD 111TH AVE N COLLIER AVENEW MARKET RD W WILSON BLVD SW MAIN ST WIGGINS PA SS RD 9TH ST SSEAGATE DR I-75 S I-75 NSR 29Tamiami TRL E Oil Well RD Immokalee RD Collier BLVDEverglades BLVDSR 82 CR 84 6 E Livingston RDDesoto BLVDS a n M a r c o R DAirport RD NTamiami TRL NSR 29 NWilson BLVDDavis BLVD Pine Ridge RD Radi o RD Logan BLVD NVanderbilt Beach RDVanderbilt DRGoodlette-Frank RD NRandall BLVD G o l d e n G a t e P K W Y Camp Keais RDCorkscrew RDSanta Barbara BLVDGolden Gate BLV D E 9th ST NOld 41Bald Eagle DRN C ollier B LV D Westclox ST Thomasson DR E Main ST Bayshore DRSmallwood DRI-75 NI-75 SBayshore DRI- 7 5 SI-75 SI-75 SI-75 N °HENDRY COUNTYMONROE COUNTY LEE COUNTY HENDRY COUNTY 2012-2025FUTURE LAND USE MAPCollier County Florida DETAILS OF THE RLSA OVERLAY AREA ARE SHOWNON THE FUTURE LAND USE MAP TITLED:"COLLIER COUNTY RURAL & AGRICULTURAL AREA ASSESSMENT STEWARDSHIP OVERLAY MAP" BAREFOOT BEACH PRESERVECOUNTY PARK DELNOR- WIGGINS STATE PARK CLAM PASSCOUNTY PARK CLAMBAYNRPA ROOKERY BAYNATIONAL ESTUARINERESEARCH RESERVE CITYOFNAPLES TIGERTAIL BEACHCOUNTY PARK CITY OF MARCO ISLAND COLLIER-SEMINOLE STATE PARK CAPE ROMANO PORTOF THEISLANDS CAPE ROMANO - TEN THOUSAND ISLANDSAQUATIC PRESERVE EVERGLADES NATIONAL PARK CHOKOLOSKEE PLANTATIONISLAND EVERGLADESCITY COPELAND BIG CYPRESS NATIONAL PRESERVE FAKAHATCHEE STRAND PRESERVE STATE PARK FLORIDA PANTHER NATIONAL WILDLIFE REFUGE SOUTH GOLDENGATE ESTATESNRPA BELLEMEADENRPA NORTHBELLEMEADENRPA IMMOKALEE CORKSCREWSWAMPSANCTUARY CREWNRPA LAKETRAFFORD R 25 E R 26 E R 27 E R 28 E R 29 E R 30 E R 31 E T 46 ST 47 ST 48 ST 49 ST 50 ST 51 ST 52 ST 53 SR 25 E R 26 E R 27 E R 28 E R 29 E R 30 E R 31 E R 32 E R 33 E R 34 ET 46 ST 47 ST 48 ST 49 ST 50 ST 51 ST 52 ST 53 S!"#$75 !"#$75 !"#$75 !"#$75 !"#$75 !"#$75 !"#$75 Æþ41 Æþ41 Æþ41 Æþ41 Æþ41 Æþ41 Æþ41 Æþ41 GOODLANDGulfofMex i c o 0 1 2 3 4 50.5 Miles J ?EXEMPTAREA PREPARED BY: BETH YANG, AICPGIS/CAD MAPPING SECTIONGROWTH MANAGEMENT DEPARTMENTFILE: Basikstorage_FLU_Map.mxdDATE: 2/9/2022 GOLDEN GATE Veterans Memorial BLVD R 32 E R 33 E R 34 E (1) THIS MAP CAN NOT BE INTERPRETED WITHOUT THE GOALS, OBJECTIVES AND POLICIES OF THE COLLIER COUNTY GROWITH MANAGEMENT PLAN.(2) THE FUTURE LAND USE MAP SERIES INCLUDES NUMEROUS MAPS IN ADDITION TO THIS COUNTYWIDE FUTURE LAND USE MAP. THESE MAPS ARE LISTED AND LOCATED AT THE END OF THE FUTURE LAND USE ELEMENT TEXT.(3) MOST SUBDISTRICTS AS DEPICTED MAY NOT BE TO SCALE. THE FUTURE LAND USE MAP SERIES DEPICTS THESE SUBDISTRICTS TO SCALE.(4) THE CONSERVATION DESIGNATION IS SUBJECT TO CHANGE AS AREAS ARE ACQUIRED AND MAY INCLUDE OUTPARCELS. (5) REFER TO THE GOLDEN GATE AREA MASTER PLAN AND THE IMMOKALEE ARE MASTER PLAN FOR FUTURE LAND USE MAPS OF THOSE COMMUNITIES. NOTE : FUTURE LAND USE MAP A D O P T E D - J A N U A R Y, 1 9 8 9 A M E N D E D - J A N U A R Y, 1 9 9 0 A M E N D E D - F E B R U A R Y, 1 9 9 1 A M E N D E D - M AY, 1 9 9 2 A M E N D E D - M AY, 1 9 9 3 A M E N D E D - A P R I L , 1 9 9 4 A M E N D E D - O C T O B E R , 1 9 9 7 A M E N D E D - J A N U A R Y, 1 9 9 8 A M E N D E D - F E B R U A R Y, 1 9 9 9 A M E N D E D - F E B R U A R Y, 2 0 0 0 A M E N D E D - M AY, 2 0 0 0 A M E N D E D - D E C E M B E R , 2 0 0 0 A M E N D E D - M A R C H , 2 0 0 1 A M E N D E D - M AY 1 4 , 2 0 0 2(O r d . N o . 2 0 0 2 -2 4 )A M E N D E D - J U N E 1 9 , 2 0 0 2(O r d . N o . 2 0 0 2 -3 2 )A M E N D E D - O C T O B E R 2 2 , 2 0 0 2(O r d . N o . 2 0 0 2 -5 4 ) A M E N D E D - F E B R U A R Y 11 , 2 0 0 3(O r d . N o . 2 0 0 3 -7 )A M E N D E D - S E P T E M B E R 9 , 2 0 0 3(O r d . N o . 2 0 0 3 -4 3 )A M E N D E D - S E P T E M B E R 1 0 , 2 0 0 3(O r d . N o . 2 0 0 3 -4 4 ) A M E N D E D - D E C E M B E R 1 6 , 2 0 0 3(O r d . N o . 2 0 0 3 -6 7 )A M E N D E D - O C T O B E R 2 6 , 2 0 0 4(O r d . N o . 2 0 0 4 -7 1 ) A M E N D E D - J U N E 7 , 2 0 0 5(O r d . N o . 2 0 0 5 -2 5 )A M E N D E D - J A N U A R Y 2 5 , 2 0 0 7(O r d . N o . 2 0 0 7 -1 8 )A M E N D E D - D E C E M B E R 4 , 2 0 0 7(O r d . N o . 2 0 0 7 -7 8 ,7 9 ,8 1 )A M E N D E D - O C T O B E R 1 4 , 2 0 0 8(O r d . N o . 2 0 0 8 -5 7 ,5 8 ,5 9 )A M E N D E D - S E P T E M B E R 1 3 , 2 0 11(O r d . N o . 2 0 11 -2 6 )A M E N D E D - S E P T E M B E R 1 3 , 2 0 11(O r d . N o . 2 0 11 -2 7 )A M E N D E D - J A N U A R Y 8 , 2 0 1 3(O r d . N o . 2 0 1 3 -1 4 )A M E N D E D - M AY 2 8 , 2 0 1 3(O r d . N o . 2 0 1 3 -4 1 )A M E N D E D - J U N E 1 0 , 2 0 1 4(O r d . N o . 2 0 1 4 -2 0 ) A M E N D E D - F E B R U A R Y 1 0 , 2 0 1 5(O r d . N o . 2 0 1 5 -1 3 )A M E N D E D - A P R I L 1 4 , 2 0 1 5(O r d . N o . 2 0 1 5 -2 6 ) A M E N D E D - J U N E 9 , 2 0 1 5(O r d . N o . 2 0 1 5 -3 2 )A M E N D E D - J U LY 7 , 2 0 1 5(O r d . N o . 2 0 1 5 -4 2 ) A M E N D E D - M AY 2 4 , 2 0 1 6(O r d . N o . 2 0 1 6 -1 5 )A M E N D E D - J U N E 1 3 , 2 0 1 7(O r d . N o . 2 0 1 7 -2 2 )A M E N D E D - D E C E M B E R 1 2 , 2 0 1 7(O r d . N o . 2 0 1 7 -4 6 )A M E N D E D - M AY 8 , 2 0 1 8(O r d . N o . 2 0 1 8 -2 3 )A M E N D E D - J U N E 1 2 , 2 0 1 8(O r d . N o . 2 0 1 8 -3 0 )A M E N D E D - S E P T E M B E R 11 , 2 0 1 8(O r d . N o . 2 0 1 8 -4 2 )A M E N D E D - S E P T E M B E R 2 5 , 2 0 1 8(O r d . N o . 2 0 1 8 -4 8 )A M E N D E D - S E P T E M B E R 2 4 , 2 0 1 9(O r d . N o . 2 0 1 9 -2 1 )A M E N D E D - O C T O B E R 8 , 2 0 1 9(O r d . N o . 2 0 1 9 -3 3 )A M E N D E D - J U N E 9 , 2 0 2 0(O r d . N o . 2 0 2 0 -1 5 )A M E N D E D - J U LY 1 4 , 2 0 2 0(O r d . N o . 2 0 2 0 -2 1 )A M E N D E D - S E P T E M B E R 2 2 , 2 0 2 0(O r d . N o . 2 0 2 0 -2 5 )A M E N D E D - O C T O B E R 1 3 , 2 0 2 0(O r d . N o . 2 0 2 0 -3 1 )A M E N D E D - O C T O B E R 2 7 , 2 0 2 0(O r d . N o . 2 0 2 0 -3 4 ) A M E N D E D - N O V E M B E R 1 0 , 2 0 2 0(O r d . N o . 2 0 2 0 -4 2 )A M E N D E D - M A R C H 1 , 2 0 2 1(O r d . N o . 2 0 2 1 -0 8 ) A M E N D E D - O C T O B E R 2 7 , 2 0 2 0(O r d . N o . 2 0 2 0 -3 6 ) A M E N D E D - A P R I L 2 7 , 2 0 2 1(O r d . N o . 2 0 2 1 -1 7 )A M E N D E D - S E P T E M B E R 2 8 , 2 0 2 1(O r d . N o . 2 0 2 1 -3 2 )A M E N D E D - O C T O B E R 2 6 , 2 0 2 1(O r d . N o . 2 0 2 1 -3 6 ) D R A FTEXHIBIT "A"PETITION PL20210000045 SUBJECT SITEPL20210000045 RESEARCH AND TECHNOLOGY PARK SUBDISTRICT COMMERCIAL MIXED USE SUBDISTRICT Hibiscus Residential Infill Subdistrict Livingston Road / Radio Road Commercial Infill Subdistrict Vanderbilt Beach Road Neighborhood Commercial Subdistrict Collier Blvd Community Facility Subdistrict Buckley Mixed Use Subdistrict Vincentian Mixed Use Subdistrict Mini Triangle Mixed Use Subdistrict East Tamiami Trail Commercial Infill Subdistrict URBAN DESIGNATION MIXED USE DISTRICT BUSINESS PARK SUBDISTRICTOFFICE AND INFILL COMMERCIAL SUBDISTRICTPUD NEIGHBORHOOD VILLAGE CENTER SUBDISTRICTRESIDENTIAL MIXED USE NEIGHBORHOOD SUBDISTRICT Urban Residential Subdistrict Residential Density Bands Urban Coastal Fringe Subdistrict Urban Residential Fringe Subdistrict Orange Blossom Mixed Use Subdistrict Vanderbilt Beach / Coller Blvd. Commercial Subdistrict Henderson Creek Mixed Use Subdistrict Goodlette / Pine Ridge Mixed Use Subdistrict Livingston Road / Veterans MemorialBoulevard East Residential Subdistrict Ventana Pointe Residential Overlay Immokalee Road Interchange Residential Infill Subdistrict Meridian Village Mixed Use Subdistrict Vanderbilt Beach Road Mixed Use Subdistrict COMMERCIAL DISTRICT BUSINESS PARK SUBDISTRICTRESEARCH AND TECHNOLOGY PARK SUBDISTRICT Mixed Use Activity Center Subdistrict Interchange Activity Center Subdistrict Livingston / Pine Ridge Commercial Infill Subdistrict Industrial District BUSINESS PARK SUBDISTRICTRESEARCH AND TECHNOLOGY PARK SUBDISTRICT Livingston Road / Eatonwood Lane Commercial Infill Subdistrict Livingston Road Commercial Infill Subdistrict Seed To TableCommercial Subdistrict Vanderbilt Beach CommercialTourist Subdistrict COMMERCIAL MIXED USE SUBDISTRICT Livingston Road / Veterans Memorial Blvd. Commercial Infill Subdistrict Orange Blossom / Airport CrossroadsCommercial Subdistrict Davis-Radio Commercial Subdistrict Logan Blvd./Immokalee Rd. Commercial Infill Subdistrict Germain Immokalee Commercial Subdistrict Greeway - Tamiami Trail East Commercial Subdistrict Bay House Campus Commercial Subdistrict Creekside Commerce Park East Mixed Use Subdistrict AGRICULTURAL / RURAL DESIGNATION AGRICULTURAL/RURAL MIXED USE DISTRICT RURAL FRINGEMIXED USE DISTRICT Conservation Designation Estates Designation Neutral Lands Sending Lands Receiving Lands Rural Industrial District Rural Settlement Area District OVERLAYS ANDSPECIAL FEATURES Area of Critical State Concern Overlay Airport Noise Area Overlay Natural Resource Protection Area (NRPA) Overlay Bayshore/Gateway Triangle Redevelopment Overlay Rural Lands Stewardship Area Overlay Urban-Rural Fringe Transition Area Overlay North Belle Meade Overlay Incorporated Areas Coastal High Hazard Area NC Square Mixed-Use Overlay RURAL COMMERCIAL SUBDISTRICT Corkscrew Island Neighborhood Commercial Subdistrict Basik Drive Storage Commercial Subdistrict 17.E.5 Packet Pg. 1319 Attachment: Exhibit A (24133 : PL20210000045 Basik Storage Commercial Subdistrict GMP Amendment (GMPA)) Tamiami TRL E Trinity PLE Hamilton RDRecycling WAYAuto Ranch RDBasik DRLake Park BLVDBASIK DRIVE STORAGE COMMERCIAL SUBDISTRICT COLLIER CO UNTY, FLORI DA º0 500 1,000250 Feet LEGENDBasik Drive Storage Comm ercial Subdistrict ADOPTED - XXXX, XXXX(Ord. No. XXXX-XX) SUBJECTSITE 17.E.5 Packet Pg. 1320 Attachment: Exhibit A (24133 : PL20210000045 Basik Storage Commercial Subdistrict GMP Amendment (GMPA)) 17.E.6 Packet Pg. 1321 Attachment: legal ad - agenda IDs 24133 & 24102 (24133 : PL20210000045 Basik Storage Commercial Subdistrict GMP Amendment (GMPA)) March 16, 2021 Exhibit Cover Pages.docx Q. Grady Minor & Associates, P.A. 3800 Via Del Rey, Bonita Springs, FL 34134  239-947-1144  engineering@gradyminor.com  www.gradyminor.com Basik Drive Storage Commercial Subdistrict (PL20210000045) Exhibit V.D1 Needs Analysis and Market Study Prepared by Self Storage 101 for B Bearden ©2022 Page 1 of 63 BOAT & RV STORAGE DESKTOP MARKET STUDY Site Location: 220 Basik Drive Naples, FL 34114 Client: Baylor Bearden Desktop Market Analysis performed by: Self Storage 101 Prepared by Self Storage 101 for B Bearden ©2022 Page 2 of 63 TABLE OF CONTENTS FORWARD ................................................................................................................................................................. 3 Trends in Boat & RV Storage ..................................................................................................................................... 7 SELF STORAGE VERSUS BOAT & RV STORAGE ...................................................................................................... 7 Operators look to expand RV storage as ownership surges ....................................................................................... 11 Why is the Demand for Boat and RV Storage On The Rise? ....................................................................................... 15 Where Dreams are Stored ...................................................................................................................................... 15 Advantages of Boat and RV Storage ....................................................................................................................... 15 Weather Damage Prevention ............................................................................................................................. 15 Less Intrusion on Home Property ....................................................................................................................... 16 Additional Security .................................................................................................................................................. 16 CONCLUSIONS AND RECOMMENDATIONS ............................................................................................................. 17 SUBJECT MARKET INSPECTION ............................................................................................................................... 19 AERIAL VIEW ....................................................................................................................................................... 19 MAP VIEW ........................................................................................................................................................... 20 SUBJECT SITE EVALUATION ................................................................................................................................. 21 AERIAL VIEW OF SUBJECT SITE ........................................................................................................................... 22 MAP VIEW ........................................................................................................................................................... 23 SITE EVALUATION ............................................................................................................................................... 24 MARKET REVIEW ..................................................................................................................................................... 27 DEMOGRAPHICS ................................................................................................................................................. 29 NEIGHBORHOOD ................................................................................................................................................. 31 COMPETITORS BY LOCATION .............................................................................................................................. 35 COMPETITOR PROFILES ...................................................................................................................................... 36 UNIT MIX AND RATES.......................................................................................................................................... 45 LEASE-UP PERIOD .................................................................................................................................................... 50 OPERATIONS/MARKETING RECOMMENDATIONS .................................................................................................. 51 10 Federal Finds Success With Self-Storage Automation: A Case Study of Unmanned Operation ............................ 55 Sales ........................................................................................................................................................................ 55 Operation ................................................................................................................................................................ 56 Monitoring .............................................................................................................................................................. 57 Challenges ............................................................................................................................................................... 57 Automation Makes Its Way Into Self-Storage ............................................................................................................ 59 Prepared by Self Storage 101 for B Bearden ©2022 Page 3 of 63 FORWARD The client has engaged Self Storage 101 to conduct a Desktop Market Study for a potential vehicle storage development or conversion location. The purpose of this report is to provide a cursory review of the subject site and subject market as related to the potential for vehicle storage development. This study researches sub-markets as related to demographic and competitive data, potential site and location viability within the existing vehicle storage market and a snapshot of the existing vehicle storage markets and the potential site’s position within those markets. When reviewing the ‘marketability’ of a potential vehicle storage location, Self Storage 101 reviews four distinct areas that are critical in determining the site and market viability: 1. The Site and its Location. As vehicle storage has become ever more a retail-type business, facility location has become more critical than in past times when self-storage facilities were located in industrial parks or behind the local airport. From a location standpoint, customers typically want the ir stored vehicles within a convenient distance. Although few do, nearly all new customers perceive that they will be accessing their space frequently. Therefore, they will seek a location that is in close proximity to where they live, work, shop, or otherwise frequent. This would include residential areas, grocery stores, banks, restaurants, or recreational areas. The industry is evolving where the trend is to locate vehicle storage away from industrial areas and into retail and residential areas. When looking at the specific location, we are evaluating the site for its visibility, accessibility, proximity to potential residential and commercial tenants and its geographical relationship to the other vehicle storage competitors within the subject market. While contemplating a potential site’s suitability it is important to review signage and other marketing opportunities necessary to enhance the subject location’s ‘statement’ within the market. Access: Some vehicle storage facilities are quite visible but have poor access. That is, the customer who wants to visit cannot locate the facility entrance, has difficulty crossing traffic or slowing down, or has a large RV or camper that cannot make a certain turn required to enter the facility. Prospective customers will visit facilities with easy access more often. Visibility: The typical vehicle storage customer, upon deciding that a storage space is needed, will remember seeing a vehicle storage facility in or around an area that they frequent. They usually will inquire at this facility to determine the price and availability of storage. A visible development, which is clearly a vehicle storage facility, will maximize the number of new customer inquiries. Prepared by Self Storage 101 for B Bearden ©2022 Page 4 of 63 Traffic Count: It is important to know the traffic count of the roadways in which the facility is visible. This represents the number of cars that will pass by the facility during the average day. Annual average daily traffic information can be obtained from the local department of transportation. Ideally, the majority of the cars passing the site represent local traffic as opposed to commuter traffic; that is, they carry people who are living, working, or shopping in the immediate area. How much local traffic is necessary depends upon the size of the facility. Facilities that are quite large should have traffic counts in excess of 15,000 cars per day, whereas, small facilities may require less than 5,000. It is also important to note the following as they relate to market position: 1. Amenities. Vehicle storage customers are becoming more discerning about their vehicle storage choices and those facilities lacking in ‘market amenities’ are finding themselves at a disadvantage. 2. Curb Appeal. Vehicle storage customers sometimes make their decisions regarding a specific site based on the initial look of the facility. A dirty, deb ris-laden parking lot and trashy landscaping is likely indicative of a poorly managed facility and uncaring managers. 3. Specials and Discounts. The more competitive a market, the more likely it is that a facility will be forced to integrate some type of aggressive move-in discounting in its marketing scheme. 4. Statistics. Most vehicle storage customers ‘shopping’ for storage end up renting storage. A critical question to ask when reviewing a vehicle storage facility is ‘why or why not would a potential customer rent here?’ 2. The Market. Vehicle storage demand in any market is determined by the needs of potential customers and thus, simply having vehicle storage inventory does nothing to increasing that potential demand. A crucial piece of the ‘marketability’ puzzle is attempting to determine if there is sufficient demand for new vehicle storage supply. New vehicle storage customers can come from only a small number of demand pools: population growth, commercial growth or pent up demand not being met by the existing competitors. An underlying question we must ask in evaluating a new vehicle storage facility is ‘why would potential vehicle storage customers rent here?’ What about the market indicates that the subject site should garner a share of the move - in activity? 3. The Competitors. Determining the rates, occupancy levels and amenities offered by the market competitors is an important factor in determining the quality of the local vehicle storage market and the propensity for a reasonable occupancy level and revenue growth for a new vehicle storage development. Our in-person evaluations of the market competitors are designed to compile both anecdotal and quantitative evidence of the ‘marketability’ of a particular vehicle storage facility. Prepared by Self Storage 101 for B Bearden ©2022 Page 5 of 63 The days of ‘build it and they will come’ are long over within the vehicle storage industry. More than ever before it does matter what the competitors are offering in order to entice potential customers. There simply may not be enough potential customers looking for storage in a particular sub -market and any new development will have to be positioned within the market to garner an acceptable percentage of the existing vehicle storage demand. 4. The Manager. There are very few business models that are as ‘manager-centric’ as vehicle storage. Oftentimes, customers do not remember the name of the facility but they almost always know the name of the manager. We believe that an A+ facility with a C- manager is a C- facility. It is absolutely critical that a vehicle storage company hire, train and develop on-site managers at the highest level. The view of managers as ‘baby sitters’ reflects a view of the business model that is outdated and becoming increasingly less viable. A vehicle storage manager must have excellent sales abilities, know how to use effective collections techniques and effectively utilize time management skills. In an ever increasingly competitive business cycle, vehicle storage facilities must have a higher level manager than their competitors. Our evidence shows that in any market, the facilities with the most professional managers almost always have the highest occupancy levels and the highest market rates. Prepared by Self Storage 101 for B Bearden ©2022 Page 6 of 63 This report was prepared exclusively for our client. While every attempt is made to provide the highest level of accuracy and reliability, it must be recognized that the report relies in some part on written and verbal information provided by others. In some instances, these sources are competitors, who may have a vested interest in skewing data. Every attempt has been made to eliminate possible misrepresentations. Self Storage 101 accepts no responsibility and shall not be liable for misinformation, eithe r intentional or accidental, and cannot be held responsible for any decisions the developer may make based on this report. Reliable sources and redundant checks are employed, but there is always an outside chance that data can be missed. One should be aware of that fact in decision making based on this report. Some preliminary construction costs estimates have been provided within the report. Although we attempt to determine current materials and construction costs, no representation is made as to their entirely or accuracy. It should be noted that the assumptions herein are based on the use of seasoned professionals in the development, entitlement, design, construction, marketing and management of the property. Self Storage 101 states that It has no financial interest in the development of this proposed project. The payment of professional fees agreed upon for this report was in no manner contingent upon the results and opinions stated within this report. Prepared by Self Storage 101 for B Bearden ©2022 Page 7 of 63 Trends in Boat & RV Storage Posted by Caesar Wright on Wed, Jan 08, 2020 @ 07:00 AM For the last few years, Boat and RV Storage has been the driving force behind the growth of the Storage Industry. It remains one of the top searched topics for new developers looking to get into the Storage Business. The plus side is that Boat and RV Storage is impervious, in many cases, to saturation of the Self Storage markets. In areas where Self Storage might be overbuilt, market demand for RV and Boat Storage is still high. Part of the reasoning behind this is that Self Storage caters to a different sort of client. The only major common thread between the two types of tenants is the need for space and a willingness to pay for it. Years ago, someone described Self Storage as a “crisis based business” I’ve always liked that description because it’s the raw truth. Some of life’s biggest catastrophes are the driving force behind a successful self-storage business. Alternatively, the Boat and RV Storage tenant entrusts a Storage proprietor with the metaphorical “key to their happiness.” Within the spaces they rent, they store the vehicles that connect them to the roads, lakes and National Parks that make America so diverse. They enlist our Self Storage Businesses to safeguard their boats and RV’s that have become more than just vehicles and are now memory -making instruments. Happiness, however, doesn’t necessarily pay the bills – so while the Boat and RV tenant might be a more long-term and stable tenant, they also pay far less per square foot for the space they rent and take up a whole lot more of the available land. The “key” to any successful self-storage project is to find the right parcel, in the right market, for the right price….and then….build the “right” product. SELF STORAGE VERSUS BOAT & RV STORAGE In a side-by-side analysis, on the same parcel with positive demand for both products - Self Storage wins. It’s less land intensive, generates a higher rent per square foot and can be less expensive to develop. The key words are “positive demand” – and that is where Boat and RV Storage has a leg up on its sibling. Developers have shied away from the product because of its downside – creating a supply and demand consideration that has developers re-examining it’s value as a stand alone business. With many new housing starts incorporating HOA’s that limit the storage on a homeowners property of Recreational vehicles; in conjunction with the fact that property is less expensive and demand getting stronger – Boat and RV Storage Development has gotten the attention of the industry. Prepared by Self Storage 101 for B Bearden ©2022 Page 8 of 63 BOAT & RV STORAGE SITE CONSIDERATIONS We’ve discussed the fact that Boat and RV Storage is more “land intensive” but a common question is “Just how much space do I need to develop a Boat and RV Storage Project?” While there is no true formula that works in all cases, most of the ideal self supporting Boat and RV Businesses are operated on parcel sizes much larger than a standard Self Storage site. We asked Jo Beth White, a Market Feasibility Expert and President of Development Services Inc. to tell us what parameters make for a good Boat and RV Storage site. “For a facility to be profitable, a large site would need to be chosen, upwards of 7-10 acres to be able to adequately support the cost of the facility versus income generated. Land cost would be predicated on the income levels generated on the site, but in all instances full lease up should occur in 24 months with breakeven occurring in the mid 14-16th months,” says Jo Beth. Using a 50% coverage ratio (which is good – but not always possible)– yields approximately 217,800 sq ft. to 304,920 sq. ft. of space under roof when built out. According to Dr. Richard Curtin, an RV Industry Analyst and Director of Consumer Surveys at the University of Michigan – the average unit size for an enclosed RV Unit is a 14 X 40 or 560 Sq. ft. We recommend to our clients that they offer a mix that ranges from 12’ – 15’ wide for RV or Boat use. DO I REALLY NEED THAT MUCH LAND? Part of the reason that Boat and RV Storage is so lan d intensive is the drive aisle space that needs to be factored in order to achieve the best and easiest access into the units. We recommend that you accommodate for at least a 50’- 55’ drive aisle where you are accessing 40’ deep units, and if space is available, to accommodate for more. RVs and Boats with Trailers are difficult to maneuver. The more space you allow your tenants the better the experience they will have. It’s important to note, however, that there are successful Boat and RV Storage facilities operating on parcels much smaller all across the country. Industry averages look at Nationwide Statistics. A business plan that functions in South Florida will not necessarily equate to success in Bozeman, MT. The key is to do a comprehensive cost vs. return on investment analysis and make sure that you have a clear understanding of your market and the propensity to rent. Market demand is a key driver to the success of any business - Self Storage and Boat and RV Storage not excluded. Proper due diligence will help you to assess how much you can afford to pay for a piece of dirt based on the amount of Rent per square foot of space and the anticipated construction costs. Prepared by Self Storage 101 for B Bearden ©2022 Page 9 of 63 TYPES OF BOAT & RV CONSTRUCTION COSTS Open Parking Less than a decade ago – most Boat and RV Storage sites were situated on “barely developed” land that allowed vehicle parking as a placeholder while the owner waited for something bigger and better to come along. While still a productive method of storing vehicles, many of the RV owners today are taking strides to protect their RV’s and Boats, and are appealing to Storage owners to provide protection and security for their investments. While this type of development is the cheapest way to offer Boat and RV Storage – it does not appeal to the discriminating tenant. It’s readily available in many markets and provides the lowest cash on cash return. Canopy / Roof Only Structures Canopies continue to be one of the most sought after products for Self Storage / Boat and RV Storage owners. The roof only structure deters most of the corrosive elements of weather and provides some long-term protection from the elements. While innately not “secure”, it can be constructed economically in most areas – using a light gauge welded “cee” design. When designing canopy storage, there are a few ‘rules-of-thumb” that we swear by. One of the most important cost savings considerations is in the roof. While we recommend a “Standing Seam” metal roof with Self Storage and Enclosed RV / Boat Storage – Canopy Storage, is by nature, “open”. We recommend utilizing a “Thru Fastened” roof with this product, as breaches can be easily identified and repaired. For the most economical approach, design posts spacing about every 24’0” (accommodating (2) side by side 12’0” parking stalls.) We recommend that you build at a clearance height of about 14’0. ” This economical approach to construction ranges from $20 -$25 psf to “Turn-Key” and compared to it’s “open parking” counterpart – is a small investment to draw in a more selective tenant base. Prepared by Self Storage 101 for B Bearden ©2022 Page 10 of 63 Enclosed Storage Fully Enclosed RV / Boat Storage is really the crème-de-la-crème of the storage “for rent” products, and should be designed and built with the most discriminating tastes in mind. This is a product that caters to the high end Class A RV’s and Boats – and will attract a more affluent and judicious renter. A typical Enclosed RV Building will consist of 14’0 wide units with depths ranging from 30’– 45’. Typical unit sizes should accommodate a 12’ wide X 14’ high roll-up doors. A 14’ tall door will accommodate the tallest vehicle on the road today. This type of construction is essentially single story “Self Storage on Steroids” It’s bigger, it’s fancier, and its more expensive. If security is paramount and convenience a draw – consider a few upgrades: • Motorized Door Operators • Electricity in the Units That Is Individually Metered • Wash Bay / Dump Station • Ice Machine / RV Supplies in the office • 24hr/7day Access Condo Storage Prepared by Self Storage 101 for B Bearden ©2022 Page 11 of 63 If the “Enclosed Storage” is in fact, the “crème-de-la-crème” then Condo Storage has indeed figured out how to “best” the best. Condo Storage provides all of the amenities that would be considered standard for an upscale Boat and RV Storage Center, and devised ways to make “buying” a storage condo a considerable alternative to renting. Condo Storage or “For Sale” units – will often provide a selection of larger units and more attractive services and aesthetics. Most “Condo” type facilities offer customizable units (with mezzanine structure) , a clubhouse, insulated or climate controlled environments, and easy “lease to own” financing terms. It might be an expensive and at times, arduous endeavor, but it’s proving to be profitable in some markets, and worth considering. In Summary I use this term loosely – and I use it often: This is not rocket science –It’s Self Storage. Like all business endeavors, development is a gamble. The good news is that it is one that has risks that can be mitigated through proper research and by learning from the “mistakes” of the guys and gals that carved the path before you. What I have always loved about this industry is the willingness of the professionals that have found success to share it with other entrepre neurs. I encourage my customers and my staff to use this resource and to treat it like the precious metal that it is. While I would love to say that “Boat and RV Storage Development” is my passion….the truth is….it’s what pays the bills. The “Key to my Happiness” is stored in a 14’0” x 40’0” Storage Unit in Lake Havasu City, AZ. Operators look to expand RV storage as ownership surges by John Egan on July 14, 2020 0 Comments Prepared by Self Storage 101 for B Bearden ©2022 Page 12 of 63 RVs are on a roll. As Americans seek pandemic-era alternatives to traditional travel, they’re buying and renting RVs in huge numbers. Research released in June by the RV Industry Association shows 46 million Americans planned to take an RV trip within the following 12 months. Eleven percent of the people surveyed wanted to buy an RV within that period and 13 percent wanted to rent an RV. Dealers and rental marketplaces say RV demand has outpaced supply. At the same time, many recreation-starved Americans are snapping up boats and other watercraft, with some manufacturers reporting that they’re struggling to keep up with demand. This rising tide of interest in RVs and boats is making waves in the self-storage industry. Storage operators report increased demand for RV and boat spaces, while storage brokers say few owners of RV and boat storage facilities are willing to sell at this point. In other words, it’s an owner’s market for RV and boat storage. “It’s a good niche for these times,” said Mike Mele, vice chairman of Cushman & Wakefield and leader of its national Self-Storage Advisory Group. Operators seeking RV and boat storage In fact, it’s such as good niche that Mele said he and his team have recently experienced an uptick in calls about RV and boat storage facilities available for sale. Some of those calls have come from big players in the industry. But unless an investor is going through a life change like a retirement or divorce, there’s no reason for an owner of an RV and boat storage property to sell it right now, Mele said. For one thing, these facilities generate steady cash flow. Additionally, he said, options for reinvesting the proceeds from a sale have narrowed. Now, for instance, many real estate investors are shying away from the pandemic-battered retail and hotel sectors. In light of those factors, the value of RV and boat storage facilities will rise, Mele said. “We’re seeing a ton of interest from buyers. But … the owners of these facilities know they’ve got something that’s good, and they’re very reluctant to part with it,” he said. The only drawback Mele sees to owning an RV and boat storage facility today is that sales of high-end “toys” might drop off if the recession lingers. Historically, cap rates for RV and boat storage facilities have been higher than those for traditional self -storage facilities. Whereas a cap rate for a traditional facility might be 6%, a cap rate for an RV and boat facility might be 7.5%, according to Mele. But he believes cap rates for both types of facilities are now hovering around the same level. Prepared by Self Storage 101 for B Bearden ©2022 Page 13 of 63 A surge in customer demand Covenant RV & Boat Storage in the Dallas-Fort Worth suburb of Celina, TX Victor Mendiola, owner and principal of Plano, TX-based Promesa Investments LLC, is reaping the benefits of the pandemic-inspired RV and boat phenomenon. Mendiola said Promesa’s 23-acre RV and boat storage facility — Covenant RV & Boat Storage in the Dallas-Fort Worth suburb of Celina, TX — became fully occupied in June. Prospective renters, roughly 90% of whom are new to RV or boat ownership, are now on a waiting list. Mendiola said he has received more inquiries about buying the property in the past 45 days or so (a few phone calls or emails per week) than he had in the previous two years. Promesa purchased the facility in April 2018, four years after it opened. Two years ago, it featured over 500 spaces. The company wrapped up a more than 200-space expansion in March 2019. Mendiola said this year’s surge in RV and boat sales and rentals has accelerated Promesa’s plans to build its portfolio beyond the Covenant facility, with a few deals now under contract. He’s confident that demand for RV and boat storage will remain strong. The challenge for growth in RV and boat storage, Mendiola said, is to meet heightened customer demand and to overcome barriers to entry, such as municipalities’ disdain for this type of storage and a thin supply of suitable land for development. “We’re in the mode of we’re either going to identify future acquisitions and we’ll be able to buy those, or, if we can’t identify any acquisitions, we’ll definitely be in ground-up development mode and pursue our investment strategy that way,” Mendiola said. “I’m either going to buy it or build it — one way or another.” Expanding RV and boat storage capacity. Prepared by Self Storage 101 for B Bearden ©2022 Page 14 of 63 Tim Springer, president of Dallas, TX-based Move It Storage, said the RV and boat rush has prompted his company to speed up consideration of RV and boat expansions. That could mean adding more spaces at facilities that already offer RV and boat storage, creating entirely new RV and boat capacity at existing facilities, or even buying facilities that offer at least some RV and boat storage. Move It owns and operates 86 facilities in six states. “It’s a good add-on product. A lot of people who have an RV also rent a storage unit,” Springer said. “It’s a complementary part of the unit mix.” Prepared by Self Storage 101 for B Bearden ©2022 Page 15 of 63 Why is the Demand for Boat and RV Storage On The Rise? Posted by jkoerner On July 6th, 2020 Boat and RV storage has been the catalyst promoting storage industry growth in recent years. It is currently among the topics searched most frequently among new developers researching self-storage. While the industry may have its saturated markets, supply is still insufficient to meet the demand for self- storage of RVs and boats. There are some differences between typical self-storage and facilities that cater to boat and RV owners, and a higher upfront cost is among the reasons investors may shy away. There can be a payoff, however, because the tenants are willing to pay for their high -end storage space. Where Dreams are Stored Typical self-storage customers store the throw-away items that aren’t considered useful enough to keep at home. Tenants at boat and RV storage facilities, on the other hand, place their most treasured possessions on self-storage property. These high-end customers need the space for their recreational vehicles. They are more than willing to pay for services at a facility that will provide peace of mind between much-anticipated outings. Notably, Homeowners’ Associations have been driving demand for more boat and RV storage because of limitations placed on the amount of storage allowed in neighborhoods. There is a potential downside to storage dedicated to boats and RVs. Because there is more space required for each tenant, more square footage is needed for the storage property. Traditional self-storage requires less land and less upfront expense while generating a greater amount of rent per square foot. Advantages of Boat and RV Storage There are plenty of reasons the owners of large recreational vehicles have gravitated to sel f-storage facilities, and the following are among them. Weather Damage Prevention Although boats and RVs are built to withstand harsh weather conditions, relentless exposure to the outdoor elements causes problems. The UV rays from the sun can have devasta ting effects as the heat builds up on surfaces. Seal damage is a common type of problem caused by the sun as is fading and cracking paint. A covered space is a huge improvement over no covering, making way for the boat and RV storage industry. Prepared by Self Storage 101 for B Bearden ©2022 Page 16 of 63 Less Intrusion on Home Property It can be extremely challenging for homeowners to navigate the necessity of storing their RV. Driveways are rarely large enough to conveniently accommodate a boat or RV. Instead of having to drive around recreational vehicles throughout every week, keeping them in storage is a better option. If your HOA disallows indiscreet RV and boat storage, paying for self -storage at a facility will ultimately be less expensive than paying HOA fines. Additional Security Of course, RVs and boats are usually sizeable investments. Owners of boat and RV storage facilities understand that and provide multi-layered security. Without the following features, RV and boat owners will probably keep looking for a more secure storage space: • Excellent lighting • A security system with multiple layers • Security cameras and video surveillance • Secure entry gates • Solid fencing Prepared by Self Storage 101 for B Bearden ©2022 Page 17 of 63 CONCLUSIONS AND RECOMMENDATIONS On or about March 16, 2022, the partners of Self Storage 101 conducted a Boat & RV Storage Desktop Market Study for a specific potential vehicle storage project in the Naples FL market. The study included an offsite examination of the subject property, a review of the boat & RV stora ge competitors in the market and the demographic profile of the subject market. It is my opinion that the market is favorable for the development of the amount of boat & RV storage space as contemplated with the subject project. We do believe it is like ly that acceptable financial assumptions and returns can be met, assuming the land and development costs are not overly burdensome, and that these return calculations would be impacted by what we would calculate to be an acceptable lease-up period and moderately high rental rates. Our opinion is based on the following: • The subject site’s financial viability is impacted by the moderately high rental rates in place at the market competitors for fully enclosed boat & RV storage units. • The boat & RV storage competitors indicate high to very high occupancy levels. The market is clearly a ‘B+’ market and the site is a ‘B+’ site. We consider this a ‘B+’ market due to what appears to be mostly high to very high occupancy levels, the moderately high rental rates for vehicle storage space, the moderate to moderately high per capita and household income levels, the low population density and modest projected population growth. (We would consider this an ‘A’ market if the population density and growth projections were higher and if the rental rates were higher). Market Vacancy – We noted that the market competitors have mostly high to very high occupancy levels which would indicate a demand for vehicle storage units in the area. Population Density – The subject market has a low population density. Income Levels – The subject market has a moderate to moderately high per capita income level and household income level. Population Growth Projections – The subject market is projected for +/- 2.6% growth over the next five years. Prepared by Self Storage 101 for B Bearden ©2022 Page 18 of 63 Factor Excellent Good Average Poor Market Vacancy XX Rental Rates XX Population Density XX Income Levels XX Population Growth Projections XX We would consider this a ‘B’ site due to the location with good visibility and access from a low to moderate traffic count roadway, the close proximity to residential customers and the potential for population drive by opportunities in close proximity. (We would consider this an ‘A’ site if the traffic count was higher and if the population density in closer proximity was higher). Traffic Counts – The subject site is located on a moderate traffic count primary roadway. Visibility – The subject facility should have a high level of visibility from the roadway. Access – Customers should have good access from the roadway. Neighborhood – The neighborhood in closest proximity to the subject site is primarily land parcels and single family homes. Location – The subject site should fit well into potential customer’s commute patterns. Factor Excellent Good Average Poor Traffic Counts XX Visibility XX Access XX Neighborhood XX Location XX Our Opinions and Recommendations are based on the information contained herein the following report and we recommend that the developer consider further examination of the development of a Class A vehicle storage facility at the subject site. Prepared by Self Storage 101 for B Bearden ©2022 Page 19 of 63 SUBJECT MARKET INSPECTION AERIAL VIEW Prepared by Self Storage 101 for B Bearden ©2022 Page 20 of 63 MAP VIEW Prepared by Self Storage 101 for B Bearden ©2022 Page 21 of 63 SUBJECT SITE EVALUATION Location: Vacant commercial land parcel located with visibility and access from a moderate traffic count roadway in the Naples market. Prepared by Self Storage 101 for B Bearden ©2022 Page 22 of 63 AERIAL VIEW OF SUBJECT SITE Prepared by Self Storage 101 for B Bearden ©2022 Page 23 of 63 MAP VIEW Prepared by Self Storage 101 for B Bearden ©2022 Page 24 of 63 SITE EVALUATION VISIBILITY: The subject site should be developed in such a manner as to have a high level of visibility from US-41, what appears to be a low to moderate traffic count primary roadway in the subject market. When asked “Why did you rent from a particular self-storage facility?’ for a Self Storage Market Study conducted by the SSA, customers overwhelmingly responded ‘because I saw it.’ There are few market conditions that can more positively affect a potential site’s viability than high visibility from a high traffic primary arterial. Tenants tend to store close to home and at a facility that ‘fits’ into their normal commute patterns. The subject site should rank high on the ‘visibility’ scale from US-41. Prepared by Self Storage 101 for B Bearden ©2022 Page 25 of 63 ACCESS: The subject site should have very good access for both directions of travelers on US-41 as there are no road dividers in this section of the roadway. Prepared by Self Storage 101 for B Bearden ©2022 Page 26 of 63 TRAFFIC COUNT: The subject site is located with very good visibility and good access from what appears to be a low to moderate traffic count roadway in the subject market. Since a large percentage of potential self storage customers tend to gravitate to a particular facility because of an initial drive -by, we encourage the developer to take advantage of the lack of internet presence and sophistication on the part of some the market competitors and to take advantage of the visibility from the roadway by maximizing the amount of signage allowed at the site. We would also encourage the developer to create and implement and robust, effective internet marketing plan, including a professional website with online rates and reservations, as well as concerted SEO (search engine optimization) efforts, in order to take further marketing advantage over some of the competitors. LOCATION RELATIVE TO COMPETITORS: The subject site does appear to enjoy some level of location advantage as it is located with very good visibility and access from a higher traffic count roadway than some of the competitors. It also appears to ‘own’ a sub-section of the market as there are no self storage competitors located in close proximity to the south and east. It is important to note that the subject property should have a distinct management advantage over all of the competitors. Self-storage is a highly ‘manager-centric’ business model and the level of management expertise in the Naples sub-market is, at best, mediocre to poor. Our opinion is based on making phone call to some of the competitors, some knowledge of this particular sub -market and an overall knowledge base of the level of management expertise at all, if not most, of the larger self - storage operators. (For example, Uhaul generally has some of the most consistently ‘C’ level managers and Public Storage generally has ‘B’ to ‘B-‘ managers, while Cubesmart, Extra Space and Life Storage generally have much more highly rated onsite managers). A strong sales-oriented manager will garner his or her fair share of the self -storage market in this sub- market of Naples. Prepared by Self Storage 101 for B Bearden ©2022 Page 27 of 63 MARKET REVIEW The following demographic profile is based on the concentric map: three-, six- and nine-mile radii out from the subject site. It is our belief that the primary customer base for the subject site resides within nine miles of the subject site. Understanding the customer demographics of the surrounding market area is essential for storage developers, owners, and operators. Accurately identifying the types of customers, as well as their wants and needs, is critical in order to form the necessary operational and marketing decisions for a facility. In a market area comprised of a high percentage of commercial or business tenants, add-ons such as on- site conference rooms, free Wi-Fi, central workspaces, climate control, or other amenities that carry special appeal for business customers can be profitable. In areas with older renters or senior citizens, convenience-oriented services such as professional packing and moving assistance could prove valuable. The largest proportion of tenants is typically residential customers. While approximately 70 percent of all storage tenants tend to fall in this category, it is important to understand that these numbers can change from market area to market area. In those areas with a predominantly residential customer base, operators need to keep in mind that life changes often drive the decision to need storage. This can range from a divorce or death in the family to remodeling or selling a home. Depending on the housing specifics in the market area, residential customers may also consist of apartment or condo dwellers who do not have enough storage space where they live. On a national basis Prepared by Self Storage 101 for B Bearden ©2022 Page 28 of 63 while 68 percent of residential customers tend to live in a single-family home, nearly 30 percent reside in multi-family housing. Another important demographic for self-storage is to know what percentage of your customers are male and female. It is noted that 85 percent of all purchases are made by women and 80 percent of all purchasing decisions are made by women. This means that although men may do the heavy lifting in terms of moving in or out of a unit, the actual rental or decision to rent was likely made by a woman. It should be noted that 57.7 percent of storage renters in 2014 were men and 42.3 percent were women. However, if 85 percent of the decisions on where to rent are actually made by women, the scales are tipped even farther in favor of women as likely storage customers. Customer age is another demographic that should be considered, especially in terms of the amenities and services offered at a facility. The largest percentage of renters are between the ages of 46 and 55. Falling right behind that are the 36 to 45 and 56 to 65 age groups at 22 percent and 21 percent, respectively. On average, 13 percent tend to be customers over age 65. Understandably, the smallest percentage of storage customers—3 percent—is represented by millennials under age 25. Prepared by Self Storage 101 for B Bearden ©2022 Page 29 of 63 DEMOGRAPHICS1 Description 3 Miles 6 Miles 9 Miles POPULATION BY YEAR Population (4/1/1990) 936 6,273 25,898 Population (4/1/2000) 1,590 8,794 41,268 Population (4/1/2010) 3,022 18,790 54,759 Population (1/1/2021) 3,756 23,310 67,433 Population (1/1/2026) 3,857 23,922 69,192 Percent Growth (2021/2010) 24.29 24.06 23.15 Percent Forecast (2026/2021) 2.69 2.63 2.61 HOUSEHOLDS BY YEAR Households (4/1/1990) 329 2,625 11,158 Households (4/1/2000) 566 3,866 18,416 Households (4/1/2010) 1,344 8,190 24,668 Households (1/1/2021) 1,696 10,355 30,901 Households (1/1/2026) 1,749 10,676 31,847 Percent Growth (2021/2010) 26.19 26.43 25.27 Percent Forecast (2026/2021) 3.12 3.10 3.06 GENERAL POPULATION CHARACTERISTICS Median Age 59.8 58.5 61.2 Male 1,883 11,746 33,728 Female 1,873 11,564 33,705 Density 174.5 238.0 455.7 Urban 1,947 18,175 60,788 Rural 1,809 5,135 6,645 GENERAL HOUSEHOLD CHARACTERISTICS Households (1/1/2021) 1,696 10,355 30,901 Families 1,243 7,503 21,733 Non-Family Households 453 2,852 9,168 Average Size of Household 2.21 2.22 2.16 Median Age of Householder 65.9 64.8 67.0 Median Value Owner Occupied ($) 344,595 295,710 329,855 Median Rent ($) 1,309 1,089 1,094 Median Vehicles Per Household 2.1 2.1 2.1 GENERAL HOUSING CHARACTERISTICS Housing, Units 3,470 18,310 53,063 Housing, Owner Occupied 1,396 8,094 25,688 Housing, Renter Occupied 300 2,261 5,213 Housing, Vacant 1,774 7,955 22,162 POPULATION BY RACE White Alone 2,936 18,543 56,766 Black Alone 380 2,398 4,762 Asian Alone 22 143 553 American Indian and Alaska Native Alone 8 73 156 Other Race Alone 315 1,639 3,842 Two or More Races 95 514 1,354 1 Demographic profile via subscription service EASI Demographics on Demand Prepared by Self Storage 101 for B Bearden ©2022 Page 30 of 63 POPULATION BY ETHNICITY Hispanic 886 5,796 14,349 White Non-Hispanic 2,390 14,761 46,855 GENERAL INCOME CHARACTERISTICS Total Household Income ($) 154,986,801 1,045,481,005 3,320,110,314 Median Household Income ($) 69,297 72,267 76,290 Average Household Income ($) 91,384 100,964 107,443 Per Capita Income ($) 41,264 45,476 49,548 RETAIL SALES Total Retail Sales (including Food Services) ($) 336,147 568,052 1,185,914 CONSUMER EXPENDITURES Total Annual Expenditures ($000) 116,099.9 729,844.0 2,217,880.6 EMPLOYMENT BY PLACE OF BUSINESS Employees, Total (by Place of Work) 1,372 5,483 15,672 Establishments, Total (by Place of Work) 72 458 1,569 The demographic profile indicates that the population and household numbers are projected to modestly increase over the next five years. It also indicates that the household and per capita income levels are in the moderate to moderately high range and the population density is in the low range. Prepared by Self Storage 101 for B Bearden ©2022 Page 31 of 63 NEIGHBORHOOD The neighborhood in close proximity to the subject site is primarily comprised of vacant land parcels, single family homes and residential neighborhoods and a number of commercial enterprises of various types and sizes. Prepared by Self Storage 101 for B Bearden ©2022 Page 32 of 63 Prepared by Self Storage 101 for B Bearden ©2022 Page 33 of 63 Prepared by Self Storage 101 for B Bearden ©2022 Page 34 of 63 Prepared by Self Storage 101 for B Bearden ©2022 Page 35 of 63 COMPETITORS BY LOCATION An important step in determining the feasibility of building a boat & RV storage facility at a particular location is the level and quality of competition within the target market area as well as the potential for future competition. The examination of the existing competition must be done using both market demand calculations and a review of the quality of the market competitors. The ‘quality’ issues include the examination of the competitive stores’ curb appeal, ingress and egress, over-all visibility, the professionalism of the management staff, security features, the facility’s Unit M ix between the various types of parking spaces and the competitors’ locations relative to the subject site within the target market area. We should point out that there is a clear delineation between ‘primary’ and ‘secondary’ competitors. ‘Primary’ competitors consist of those boat & RV storage facilities that are the most likely to compete for the same tenant base as the subject site. These competitors are determined by proximity to the primary market, amenity level, marketing prowess and management expertise. A storage facility that is close in proximity may not necessarily qualify as a primary competitor if the level of amenities is low, they have no marketing in place or the management is of a very low quality. When deciding on the primary competitors, we ask ourselves ‘if a prospective tenant does not rent from the subject site, where would they rent?’ Prepared by Self Storage 101 for B Bearden ©2022 Page 36 of 63 COMPETITOR PROFILES 1. Naples Big Boy Toy Storage 3390 Mercantile Ave Naples FL 34104 (239) 350-3500 Distance from Subject Year Built Occupancy Fully Enclosed Parking Covered Parking Open Parking Drive Surface 95% Yes Yes Property Ratings Visibility Location Traffic Count Access Condition Curb Appeal C B+ B B Drive Width Manager Office Quality Overall Rating Office Hours Office Hours Access Hours Amenities Keypad Entry Cameras Wash Bay Free Air Electric Dump Station Yes Yes Website Online Rates? Dynamic? Reservations? Specials? Features? Overall Rating Yes Yes Yes Yes No Some B+ Comments: indoor storage, 10x17 $205, 8x22 $235, 10x20 $300, 10x30 $240, 10x30 $450; outside storage 20’ $160, 35’ $280 Property Photo Prepared by Self Storage 101 for B Bearden ©2022 Page 37 of 63 1. Midgard RV & Boat Storage 14970 Old 41 Road Naples FL 34110 (239) 596-0900 Distance from Subject Year Built Occupancy Fully Enclosed Parking Covered Parking Open Parking Drive Surface 99% Yes Property Ratings Visibility Location Traffic Count Access Condition Curb Appeal B B B B+ Drive Width Manager Office Quality Overall Rating Office Hours Office Hours Access Hours 9-6 M-Sa 12-4 Su 24 hours Amenities Keypad Entry Cameras Wash Bay Free Air Electric Dump Station Website Online Rates? Dynamic? Reservations? Specials? Features? Overall Rating Yes Yes Yes Yes No No B+ Comments: outside 15’ $54, 20’ $87, 30’ $134, 40; $114 Property Photo Prepared by Self Storage 101 for B Bearden ©2022 Page 38 of 63 Prepared by Self Storage 101 for B Bearden ©2022 Page 39 of 63 1. The Hideout Storage Park 195 Basik Drive Naples FL 34114 (239) 213-8029 Distance from Subject Year Built Occupancy Fully Enclosed Parking Covered Parking Open Parking Drive Surface Unknown Yes Property Ratings Visibility Location Traffic Count Access Condition Curb Appeal Drive Width Manager Office Quality Overall Rating Office Hours Office Hours Access Hours 24 hours Amenities Keypad Entry Cameras Wash Bay Free Air Electric Dump Station Yes Yes Yes Yes Website Online Rates? Dynamic? Reservations? Specials? Features? Overall Rating Yes No No No No Yes C Comments: 40 acres; covered storage coming October 2022, 25’ to 50’, $375 to $475, 50 amp service; no contact with this site after several attempts Property Photo Prepared by Self Storage 101 for B Bearden ©2022 Page 40 of 63 Prepared by Self Storage 101 for B Bearden ©2022 Page 41 of 63 1. Old 41 RV Storage 25211 Old 41 Bonita Springs FL 34135 (239) 992-3061 Distance from Subject Year Built Occupancy Fully Enclosed Parking Covered Parking Open Parking Drive Surface 99% Yes Property Ratings Visibility Location Traffic Count Access Condition Curb Appeal B B+ B+ B Drive Width Manager Office Quality Overall Rating Office Hours Office Hours Access Hours Amenities Keypad Entry Cameras Wash Bay Free Air Electric Dump Station Website Online Rates? Dynamic? Reservations? Specials? Features? Overall Rating Yes Yes No No No No D Comments: less than 30’ $80, over 30’ $94 Property Photo Prepared by Self Storage 101 for B Bearden ©2022 Page 42 of 63 Prepared by Self Storage 101 for B Bearden ©2022 Page 43 of 63 1. Naples Toy Storage 3920 Tollhouse Drive Naples FL 34114 (239) 280-0810 Distance from Subject Year Built Occupancy Fully Enclosed Parking Covered Parking Open Parking Drive Surface unknown Property Ratings Visibility Location Traffic Count Access Condition Curb Appeal C C C Drive Width Manager Office Quality Overall Rating Office Hours Office Hours Access Hours 24 hours Amenities Keypad Entry Cameras Wash Bay Free Air Electric Dump Station Website Online Rates? Dynamic? Reservations? Specials? Features? Overall Rating Yes No No No No No F Comments: no contact with this site after several attempts Property Photo Prepared by Self Storage 101 for B Bearden ©2022 Page 44 of 63 Prepared by Self Storage 101 for B Bearden ©2022 Page 45 of 63 UNIT MIX AND RATES There are competitive, demographic and other market factors which affect unit mixes. Tenant composition (commercial vs. consumer) also affects unit mix. Dwelling structures (residences) affect unit mix, particularly with regard to basements, attics, and three car garages. The basic sizes o f residences have dramatic impacts as well, such as Manhattan apartments versus rural farms. All of these criteria, in addition to many others, tend to make formula driven unit mixes inappropriate. Unit mix should be first determined by market conditions and THEN by site constraints. The final unit mix footage and unit count will likely change at final construction. This proforma suggests the correct mix, given the confines of a preliminary design. Developers are always advised that unit mixes should be derived through market criteria, not construction efficiency. Rates included are as of this date. Forecasting for future development may allow for some nominal rate increases, and it is assumed that among the primary competitors, the propensity for rate growth is likely. None of the primary competitors are especially known to be rate leaders, suggesting that rates may not continue to move upward over time as occupancy levels increase. It is a common practice in revenue management for rates to increase when occupancy levels reach certain targets. Conversely, when vacancy is high, discounts may be deployed, a function of revenue management. None of the primary competitors are known to have a formal revenue management programs, which would manage rates by occupancy levels, offering specials in soft sizes, and pushing renta l rates on high demand spaces. Given the subject property’s proposed amenity package of cameras, paved driveways, a professional office, and professional storage counselors, it is assumed the subject property will be a rate leader in the market. There are no institutionally owned properties in the market. The presence of institutional properties can positively affect the subject property in its ability to increase rents over time as occupancy levels increase. Institutionally owned properties have sophisticated revenue management tools which drive optimal rent growth. The presence of institutional “players” can be a significant benefit to the profitability and value increase of the subject project. The ability of the subject site to aggressively manage the posted street rates will be negatively impacted by the lack of any institutionally owned facilities in the market. Prepared by Self Storage 101 for B Bearden ©2022 Page 46 of 63 Typically, we forecast rents to be near the top of the market as if the project were built today. It is common that rates may increase, and while the projections typically do not include rate increases during rent-up, this factors in as a discount, as would be typically given during the absorption period. Simply stated, our rates should be on target, given the lead time between this report and store opening, coupled with rents held at flat levels during stabilization. The assumption is that discounting and rental rate increases during stabilization are a “wash”. PROPERTY Naples Big Boy Toy Storage 1 $160.00 1 $280.00 1 $0.00 0 $0.00 0 $0.00 Midgard RV & Bost Storage 2 $134.00 1 $0.00 0 $114.00 1 $0.00 0 $0.00 The Hideout 3 $0.00 0 $0.00 0 $0.00 0 $0.00 0 $0.00 Old 41 RV Storage 4 $80.00 1 $94.00 1 $94.00 1 $94.00 1 $94.00 Naples Toy Storage 5 $0.00 0 $0.00 0 $0.00 0 $0.00 0 $0.00 374.00 3 374.00 2 208.00 2 94.00 1 94.00 Average $124.67 $187.00 $104.00 $94.00 $94.00 OPEN PARKING Map #30'35'40'45'50' Prepared by Self Storage 101 for B Bearden ©2022 Page 47 of 63 Unit mix for subject site: We have recreated the unit mix, more or less, as contemplated by the developer. UNIT SPACE % OF SF TYPE # OF % OF UNITS SQ FT TYPE TOTAL SQ FT SPACES TOTAL 12 x 30 Parking #DIV/0!0 30 30% 12 x 40 Parking #DIV/0!0 40 40% 12 x 50 Parking #DIV/0!0 30 30% Totals 0 0 - 0 #DIV/0!0 100 100% TOTAL SQ FT AVERAGE TOTAL UNITS % OF SPACE Parking 0 0 100 100% OUTDOOR TOTALS 0 100 100% PROJECT TOTALS 0 100 SIZE UNIT MIX Prepared by Self Storage 101 for B Bearden ©2022 Page 48 of 63 We have recommended rental rates that we believe will allow the subject site to be competitive within the sub-market and have derived those rates from the local market competitors. We also recognize that the time lapse between the creation of this report and the opening of this site could result in an actual unit mix with the same rates, higher rates, or lower rates, depending on how the market performs over the ensuing months. UNIT SPACE ANNUAL RATE PER % OF UNIT SQ FT TYPE REVENUE SQ FT REVENUE PRICE 12 x 30 0 Parking 46,782$ 4.33$ 25%129.95$ 12 x 40 0 Parking 76,776$ 4.00$ 41%159.95$ 12 x 50 0 Parking 64,782$ 3.60$ 34%179.95$ Totals 0 0 0 0 188,340$ #VALUE!100%469.85$ ALL REVENUES $/Sq . Ft.100%As a % of Revenue Parking 141,558$ #DIV/0!75%As a % of Revenue OUTDOOR TOTALS 188,340$ #DIV/0!100% PROJECT TOTALS 188,340$ #DIV/0!100% REVENUE GENERATOR SIZE Prepared by Self Storage 101 for B Bearden ©2022 Page 49 of 63 Notes: • The unit mix contains an inventory of uncovered boat & RV storage units. • We have recommended unit rates that we believe would allow the facility to effectively compete with the self-storage competitors in the market. The creation of a marketable unit mix is an important aspect of the development of an RV storage facility and as such we would point out: • The unit mix recommendation is created with the assumption that the facility will attract primarily residential tenants in need of higher quality storage options for their RV’s and boats. Prepared by Self Storage 101 for B Bearden ©2022 Page 50 of 63 LEASE-UP PERIOD In order to deliver the most successful pricing plans, many factors are evaluated including street rates, discounts, inventory levels, historic trends, and move-in specials. Combining the data to determine optimal target occupancy for a specific self-storage store is somewhat of an art form. As always, business conditions in a facility’s immediate market area must be considered when creating occupancy strategies for individual storage stores. Since RV storage is a highly localized industry, conditions in the immediate market area surrounding the store can have a major impact on occupancy rates. Factors such as a depressed local economy or the opening of a new storage facility in the area can potentially lead to a decline in occupancy. On the other end of the spectrum, new home developments, an explosion in recruitment at local companies, and other dynamics are often met with sharp increases in occupancy rates. In general, most industry experts agree that target occupancy rates for self-storage stores in the U.S. should hover in the 90 to 95 percent range. When a store has too many unoccupied units, it is unable to generate money to its full potential. On the other hand, RV storage facilities with too few vacant storage spaces will have to turn customers away—some of whom would have been willing to pay more for a unit than the current tenants are paying. In addition, most unserved potential customers will end up as tenants at competing self-storage stores. Due to the current unmet demand for RV storage space in the micro market as represented by the mostly high to very high occupancy levels in the market, it is our opinion that the subject facility should anticipate a 12-18 month lease-up period to stabilization. This assumption is predicated upon the belief that the market will remain as strong as it currently is and that the developer will upgrade, manage and market the facility as an ‘A+’ facility using most, if not all, of the included recommendations. We also predicate this opinion on the recognition that the developer is an experienced vehicle storage operator or will utilize the services of an experienced self-storage operator or third party management company. This assumption is based on the following: • There is clearly some amount of unmet demand for new RV storage inventory in close proximity to the subject facility based on the estimated and known occupancy levels of the market competitors as well as comments from competitor managers. • There are no other known potential RV storage projects in development within the subject micro - market. • The management expertise level at the subject site should afford the new facility a substantial sales and marketing advantage over the market competitors. Prepared by Self Storage 101 for B Bearden ©2022 Page 51 of 63 OPERATIONS/MARKETING RECOMMENDATIONS • Signage. We cannot over-estimate the value of highly visible, colorful signage. Storage is primarily a retail business and proper signage is critical. We recommend that the reader consider maximizing the amount of signage allowed: o ‘RV Storage’ should be the largest words on the sign o Facility phone number in large numerals o Manual reader boards are not recommended, but if the budget allows, an electronic reader board can be used to point out specials, community events, time & temperature, etc. o We highly recommend that the developer immediately create a ‘Coming Soon!’ sign on the property with an 800# to begin monitoring demand and creating a ‘pre -leasing ‘energy. Such a sign might also work to discourage any potential new self-storage developments in the subject market. o The developer might consider having a third party call center answer the ‘Coming Soon’ phone number, especially as the opening of the facility becomes imminent and pre-leasing opportunities start to happen. • Call Center. Already a proven strategy among the big boys in the U.S. marketplace, the call center concept is noted as one of the greatest competitive advantages in all of self-storage. Self- storage operators cannot afford to miss prospective customer inquiries and will not miss those calls by using a third party call center. We are surprised that in 2016 that any existing self -storage facility does not use a call center. The call center provides self-storage owners with a remote level of services that range from answering all facility calls, rollover facility calls that give managers the opportunity to answer first, and after-hour facility calls. Moreover, call centers can handle all incoming calls with 24/7 options. The strategy allows the manager to focus on operational duties, marketing, and face-to face customer service. The value of every rental is far too high to trust to an answering machine. Too many studies indicate that potential customers simply will not leave a message and continue to call through the Yellow Pages or various web sites (or other marketing sources) until they are able to reach someone. Self- storage centers are at a clear marketing disadvantage in their marketing efforts by not using a call center. o The call center answers the phone when the manager can’t (usually after the third or fourth ring as well as before and after the facility office closes) o The calls transfer seamlessly to the call center and oftentimes the customer doesn’t know they have reached a call center. o The call center agent can take a reservation, take a payment, answer questions about the account, etc. o The call center will increase rentals and increase customer service. o Managers have to be trained to effectively utilize the benefits of a call center . Prepared by Self Storage 101 for B Bearden ©2022 Page 52 of 63 Self-Storage Call Center we highly recommend: • XPS – Mike Roberts 972-865-4312 www.xpsusa.com • State-of-the-Art Security. The developer should make no compromises in security technology. o Individual door alarms are not recommended for this facility. o Access controlled facility entry o Recorded security surveillance o A large number of security cameras o We highly recommend contacting PTI Security Systems, 800-523-9504 www.ptisecurity.com • Marketing Plan: The developer should immediately employ a consultant to develop a complete and detailed marketing plan for the store. The marketing plan should include many of the suggestions listed including a direct mail 'drip' campaign to local businesses and a 'declutter sale ready' service for realtors. The marketing plan should give specific costs and implementation strategies. • Sales Management: A specific plan for monitoring on-site sales effectiveness and retail sales should be a strong component of the management plan. • Extended Access Hours: The store should offer extended access hours and, commensurate with the extended access, increased security. The recommended gate hours are 6:00 am to 10:00 pm, seven days a week. Commercial tenants should be offered extended hours as needed. • Internet Strategy: Today, more and more self-storage owners are continuing to incorporate self- service into their website storefronts to compete for added rentals. Consumers are carrying around smartphones—business tools in the palms of their hands. And as a result, storage companies with optimized websites are enjoying great success by renting units on-demand. For new online tenants, it is a welcome reprieve from the task of visiting a store during office hours and dealing with all the paperwork in person. Should this trend continue, facilities that dismiss the use of a functional website will find themselves unable to serve and engage a broader customer base through Web and mobile channels. In fact, current case studies reveal how online storage shoppers are responding when facilities implement a personalized Web-mobile rental channel. The Marketing plan should have an E-Commerce component, and should deploy a strong Internet presence. The E-Commerce strategy should include: o Website ▪ Easy to navigate ▪ Clear ‘call to action’ ▪ ‘clutter-free’ o On-line rental capability ▪ Allows potential customers to conduct business with you when you are not open ▪ Research clearly indicates this is a highly desirable service for customers. Prepared by Self Storage 101 for B Bearden ©2022 Page 53 of 63 o Search engine optimization ▪ It is important that facility’s website ranked consistently high among web searches within the subject market o On-line payment options ▪ Credit cards ▪ Debit cards ▪ ACH o Link to call center during business hours ▪ Call center can implement ‘live chat’ for facility o Real-time inventory management ▪ Accurate availability. o We highly recommend contacting Chris Baird at Automatit, 520-293-4608 www.automatit.net • Automated Technology. We recommend that the developer consider adding automated technology to the subject facility. This technology extends the reach of customer acquisition and customer service. In an industry that typically serves customers in person between the hours of 9 to 5, incremental sales and reduced labor costs represent the top drivers that motivate owners to integrate automated technology. In turn, the reality of losing recurring business to nearby competitors marks these new technologies as one of the most prominent strategic solutions. This is because automated technology is always onsite to take care of a new renter—keeping a facility open when others in the marketplace are closed. o This technology has several benefits: ▪ Low cost for the initial investment. ▪ Extends rental hours when tied to one of the third party call centers. ▪ Reduces staff activities and may allow for reduction of operating hours. ▪ Reduced operating costs and increased profits, NOI and asset values. ▪ Creates a unique marketing and sales position for the subject facility. ▪ Automation allows owners and operators the ability to conduct business both during and outside of normal office hours, thereby helping to maximize income for self-storage facilities. • USP: The store should have a strong Unique Selling Proposition to set it apart from the competition. o Canopy covered RV and boat storage units • Affiliations to Gain Sales: The developer should consider Preferred Partner Programs to increase traffic. o RV Sales and Service Dealers o Home Owner’s Associations • Guerilla Marketing: The Marketing Plan should address a direct sales effort to area businesses and multi-family communities. • Direct Marketing and Community Involvement: The store managers should be active in the local Chamber of Commerce. Storage is a local business that relies on referrals. Chamber members know many people in the community. • Direct Mail Campaign: The Marketing Plan should identify the targets, frequency and nature of a direct mail campaign. The plan may or may not include Val-Pak recommendations. Prepared by Self Storage 101 for B Bearden ©2022 Page 54 of 63 • Collateral Materials: Hire a self-storage marketing consultant to create a logo, brochures, collateral, web page, property signs, etc. The developer can contact the Self Storage Association or the Mississippi Self Storage Association for recommendations. • Competitor Referral Program: A program to receive referrals from competitors should be developed. • Tenant Retention Program: A specific program for tenant retention should be developed as part of the management plan. • B2B Marketing: A specific marketing effort to attract commercial customers should be presented. • Custodial Management: Commit to keeping the property “clean and green.” There is longstanding value to keeping the property in exceptional condition. Landscaping doesn’t need to be elaborate, just well-maintained. • Management Software: The subject facility should use a web-based management software system. The newer programs now available to the self-storage industry allow owner-operators to review reports and on-site activities in real time and the array of reports allows for more effective oversight of the facility. Owners can more readily review various rent change scenarios, check for rent allowances and discounts and implement tenant rent increases, all without necessarily engaging the onsite manager. (We are not recommending that all functions, such as rent increases, be implemented without manager ‘buy-in.) We highly recommend contacting the following companies about their management software programs: A. Syrasoft Mark Somers 315-236-5496, www.syrasoft.com B. storEdge Austin Jones 913-954-4110, www.storedge.com C. WebSelfStorage Toni Colasso 866-693-6683 www.webselfstorage.com D. Sitelink Dave McCormack 919-865-0789, ext 1 www.sitelink.com Prepared by Self Storage 101 for B Bearden ©2022 Page 55 of 63 10 Federal Finds Success With Self-Storage Automation: A Case Study of Unmanned Operation The owner of 10 Federal Storage discusses the role of technology in his company’s successful operation of 15 unmanned facilities. Learn how they do it and challenges they’ve faced when implementing new tools. At 10 Federal, our focus is on operating unmanned, autonomous self-storage facilities. Over the past four years, we’ve tried numerous technologies and methods to refine the process, and I’m pleased to report the model is succeeding. Properties that have been on our platform for a minimu m of six months have increased net operating income an average of 18 percent. With our debt leverage, this equates to a 52 percent increase in the value of equity invested! What’s important to recognize is technology is replacing labor. It doesn’t matter what industry you’re in— there are more machines, computers and robots than ever performing work that used to be done by people, and productivity is increasing tremendously through technology use. For example, we have one property manager who oversees all 15 of our locations. That’s pretty efficient! Our goal is to find the maximum point on the curve where one axis is customer satisfaction and the other is cost. Effectively, we’re looking for the best tenant experience at the lowest rate. We’ll look at any technology that can improve convergence. However, the tools we employ can be used by any self -storage operator. Pick one or all. Any will increase the efficiency of your operation and save you time, money or both. Before I dive into the details of the technology we use, I want to emphasize that the following is not a definitive list. Our industry is full of great vendors who are constantly refining and improving their products. This is simply what we’re using for our current model. I’ll distill items into thr ee categories: sales, operation and monitoring. I’ll also shared challenges we faced to implement new technology and the effect it’s had on our customers. Sales Our sales revolve around a leasing-enabled website and kiosk as well as a call center. A leasing-enabled website allows a prospective renter to create an account, select a unit, enter payment information, create a gate code, electronically sign the lease and move into the unit all on his own. Twenty -four percent of our tenants rent through our website without ever talking to us. Not only is this optimal efficiency, it gives us a big advantage. We can lease 24 hours a day, whereas our competition can only rent during business hours. We average three to five leases per facility per month through after-hours leasing. Prepared by Self Storage 101 for B Bearden ©2022 Page 56 of 63 A leasing-enabled kiosk performs all the same functions as the website. Though only 6 percent of our leases originate through this tool, I still recommend having one. The use is enough to justify the investment, and the kiosk doubles as a pay station and information terminal for customers. Further, it establishes an “office” where renters begin their onsite journey. Another critical item you need if you’re operating an unmanned facility is a model unit, since after price, the next most common question from customers is, “What size unit do I need?” We either convert an existing office or buy a 10-by-20 portable-storage unit to use as the model. We mark the smaller unit sizes on the floor using colored tape. Placing this near the kiosk allows customers to visualize the space they’ll need. The call center is the final and most critical sales channel. Seventy percent of our leases originate here. Units are rented over the phone, or the customer can complete the lease at the kiosk or website. You can’t escape having a call center if you go unmanned. We established our own, as unmanned sites were pretty specialized when we started. Now, there are many great call -center options. None of the above is relevant, however, if the customer doesn’t know abou t your store, so it’s critical to have an online presence. Start with getting a Google My Business Listing, then supplement with Google AdWords. I love this advertising channel because you can turn it on and off as needed . Operation For payments, we only accept electronic—no cash or checks. We lose 10 percent of customers when we acquire a facility and enforce this requirement, but we recover that loss quickly and the system is very efficient. Next is the overlock challenge, specifically how to release an o verlocked renter if there’s no manager onsite. We use a lock system we developed ourselves, but there are other automated lock options in the industry. Even if your facility is staffed, an overlock system will help with efficiency, as the manager won’t have to spend time removing overlocks, and locks can be removed even after hours. It’s a better customer experience. We do employ part-time maintenance techs who invest an average of 10 to 20 hours per facility per month. That’s still far better than 160 hours per month for a full-time manager. A maintenance tech mows, blows, cleans, overlocks units, takes auction photos and handles other routine tasks. We’re experimenting with 360-degree cameras and virtual-reality headsets that will allow our maintenance director to be “present” with the tech to do things such as walk-throughs or troubleshooting a gate. Prepared by Self Storage 101 for B Bearden ©2022 Page 57 of 63 Monitoring We rely heavily on our camera system and are experimenting with analytics cameras. A legacy system records what has occurred on site, but an analytics system can be trained to recognize if a door or vehicle gate is stuck open. Plus, the cameras can see thermally, so they can recognize if a climate -controlled building’s temperature is outside of its target range or there’s water on the floor, indicat ing a leak. Our goal this year is to make the analytics cameras our central nervous system to monitor all aspects of the facility and actively notify us of exceptions. Challenges We have experienced some challenges when introducing technology at our proper ties, and they can be divided into two categories. The first we’ve defined as “the incident of failure rate” and the second is simplicity. With unmanned operations, we have no one on site to deal with things that fail or break; hence, our goal is to get the frequency of something not working as close to zero as possible. There are a lot of amazing whiz-bang technologies out there, but if they’re not extremely reliable, they aren’t a good fit for unmanned sites. Also, when you’re unmanned, there’s no one on site to explain how anything works. Every process must be as simple as possible so anyone without prior self-storage experience can jump right in and execute. We work hard to get tenants onboard with our technology. When we acquire a facility and implement new tools, we lose 10 percent of the rent roll, on average. That may sound bad, but that same technology allows us to quickly recover those lost tenants. And, by the way, those are our “least efficient” customers—the ones who insist on paying by cash or check—so we’re not exactly sad to see them go. Most tenants are remarkably comfortable with our technology, as we try to keep it in the vein of interfaces they’re already used to, such as a website, kiosk or combination lock. It’s all familiar to them thanks to online shopping, Redbox and ATMs. Whether you’re thinking of going unmanned or just looking to find new efficiencies, I encourage you to attend industry tradeshows and see the technologies firsthand. Consider things that are easy to implement, such as connecting your gate to your website and mana gement software. Chances are, everything is already in place, you just need your software provider to flip that switch. Then you can rent units 24 /7! This is just one way you can better serve customers and lower your operating costs. Prepared by Self Storage 101 for B Bearden ©2022 Page 58 of 63 Brad Minsley is a co-founder of 10 Federal Storage LLC, responsible for operations including new- technology development, acquisitions, management functions and finance. 10 Federal operates 17 unmanned facilities in the Carolinas and Virginia Prepared by Self Storage 101 for B Bearden ©2022 Page 59 of 63 Automation Makes Its Way Into Self-Storage Many industries are adopting automation to make everyday transactions faster, easier and more convenient for consumers while increasing business efficiency. It was only a matter of time before this trend made it to self-storage. Whether you’re depositing a check or buying groceries, many aspects of your daily routine may look very different than they did 10 years ago. Technology has given us tools including bank mobile apps and self-checkout lanes to make everyday transactions faster, easier and more convenient for consumers while increasing business efficiency. Many industries are adopting automation to provide customers and users with fast, real -time results. It was only a matter of time before this trend made it to self-storage. Five years ago, kiosks weren’t readily accessible in storage facilities. Customers came in, visited with the manager, went to their units and left. Believe it or not, there wasn’t nearly as much hustle and bustle back in 2013. Many sites d idn’t even have a website, so payments were made in person or through the mail. Automation is changing the self-storage landscape, enabling owners to cut costs and enhance the customer experience. The one-on-one interaction between tenants and a real person is still significant, however, there are ways to increase efficiency and return on investment without losing that personal touch. Whether you’re depositing a check or buying groceries, many aspects of your daily routine may look very different than they did 10 years ago. Technology has given us tools including bank mobile apps and self - checkout lanes to make everyday transactions faster, easier and more convenient for consumers while increasing business efficiency. Many industries are adopting automation to provide customers and users with fast, real-time results. It was only a matter of time before this trend made it to self -storage. Five years ago, kiosks weren’t readily accessible in storage facilities. Customers came in, visited with the manager, went to their units and left. Believe it or not, there wasn’t nearly as much hustle and bustle back in 2013. Many sites didn’t even have a website, so payments were made in person or through the mail. Automation is changing the self-storage landscape, enabling owners to cut costs and enhance the customer experience. The one-on-one interaction between tenants and a real person is still significant, however, there are ways to increase efficiency and return on investment without losing that personal touch. For a self-storage operator, automation allows you to control expenses and increase margins. Online reservations/rentals and keypad gate access will enable you to securely operate your facility beyond traditional business hours, without the incremental cost of an hourly employee. With rental-rate increases slowing down, expense reduction is one way to add more to the bottom line. Prepared by Self Storage 101 for B Bearden ©2022 Page 60 of 63 Automation may not work at every facility, but it’s an option for facilities in rural and urban areas. "Automation can provide a far superior customer experience, which results in higher occupancy and higher rents. We are experiencing these effects first hand on the deals we are acquiring and automating," says Brad Minsely, owner of 10 Federal, which operates 11 self-storage locations in North Carolina. If you’re looking to add technology to your self -storage facility, you’re one of many. There are ample benefits to automation. Prepared by Self Storage 101 for B Bearden ©2022 Page 61 of 63 Bob Copper Self Storage 101 671 Oak Haven Trail Columbiana AL 35051 Office: 866-269-1311 Fax: 866-398-5859 www.selfstorage101.com Consultant Qualifications: 2003-Present Owner, Partner in Charge, Self Storage 101 Founder of Self Storage 101, the industry’s leading consultancy firm specializing in Development and Market Feasibility, Operational Improvement and Marketing Implementation. Bob has worked with 100’s of independent owners and operators to assist in making informed and profitable decisions in all aspects of self-storage. He has developed, own and managed his own facilities and so has a unique perspective that easily relates to those operators he has consulted with over the years. Bob and the Team at Self Storage 101 specialize in: • Market and Feasibility Studies • Acquisition Due Diligence Projects • Facility Operational Auditing • Owner, Operator and Manager Training Bob has authored a number of highly popular books and training manuals related to self storage and is a regular contributor to most of the industry trade journals. He is a regular speaker at national, regional and local self storage meetings and conventions. 2001-2004 Regional Manager, Metro Storage LLC Oversaw three district managers in four states for Metro Storage, one of the largest operators of self storage facilities in the US. Had complete P&L responsibility as well as asset management, portfolio growth, marketing and adding value to the assets. Developed training programs and assisted district managers with personnel decisions and financial statement reviews. 1998-2001 District Manager, Public Storage Successfully managed the largest Public Storage district in the country (17 properties). Took over two under-performing districts and turned them into some of the highest performing districts. Responsible for all personnel management, expense control, manager training, property management and operational reporting. Involved in several acquisitions and new-store openings. Education: Stetson University, 1979-1983 Professional References gladly provided upon request. Prepared by Self Storage 101 for B Bearden ©2022 Page 62 of 63 Bill Copper Self Storage 101 406 Oliver Approach Johnson City, TN 37601 Cell 828-381-5631 www.selfstorage101.com Consultant Qualifications: 2006-Present Consultant, Self Storage 101 Field Auditor and Data Analyst with Self Storage 101, the industry’s leading consultancy firm specializing in Development and Market Feasibility, Operational Improvement, and Marketing Implementation. Bill has worked with dozens of independent owners and operators to assist in making informed and profitable decisions in all aspects of self-storage. Bill has developed and implemented systems for analyzing and collecting relevant data to: • Improve operational efficiency • Measure operational effectiveness • Assist in determining project viability • Measure Capital Rate of Return on acquisition projects Bill has worked closely with clients and industry vendors to aid in market research and development viability for a large number of independent-owner and institutional self storage projects: • Provide comprehensive market data and analysis to determine unmet demand or over-supply in specific markets • Participated in a number of community neighborhood meetings, municipal presentations and investment group conferences to provide anecdotal and empirical evidence regarding market demand and viability of specific self storage projects • Prepared a large number of complete bank package or self storage feasibility studies, documenting “develop or not develop” recommendations Education: Stetson University, 1980-1984 Professional References gladly provided upon request. 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