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HomeMy WebLinkAbout2004 05 24 Regular 500 COMMISSION AGENDA ITEM 500 Consent Informational Public Hearing Regular X ,- May 24, 2004 Meeting /l-- J~ Mgr. / Dept. Authorization REQUEST: The Community Development Department- Planning Division requests that the City Commission make a determination as to whether Creative Printing and Publishing, a small scale commercial printer, is a permitted use within the "C-l Neighborhood Commercial" district. PURPOSE: The purpose of this agenda item is for the City Commission to provide an interpretation of the City Code (C-l Zoning District, Sections 20-231 and 20-232), relating to the potential relocation of a small scale commercial printer into the "C-l" Neighborhood Commercial Zoning District under the permitted use of "Quick Printer". APPLICABLE REGULATIONS: Sections 20-231 & 20-232 [City Code] CONSIDERATIONS: Creative Printing and Publishing proposes to relocate their existing business (currently located along 1 7-92) to a site at the southeast comer of Wade Street and SR 419, currently zoned "C-l Neighborhood Commercial". Creative Printing and Publishing currently occupies a leased space of 10,000 SF and has sixteen (16) full-time employees and two to three part-time employees. They are a full-service printer offering both offset and digital printing on letterhead, business cards, newsletters, mailings and brochures. They have presses, collators and mailing machines. The applicant is interested in building and occupying a 15,000 SF building within Winter Springs. @) REGULAR AGENDA ITEM 500 MAY 24, 2004 The printing industry differentiates between convenience copy centers (on-demand printing services), quick printing and high-end commercial printing. The differences are based on the level of service including the intensity of product and service commitments. Creative Printing and Publishing is a small-scale commercial printer described in the following data: Nature of the Business: Printing, Publishing and Finishing Services. (This may include high volume printing, presentation graphics, network publishing, and offset printing.) Clientele: Corporate clients established primarily through sales reps; Very little walk in customer traffic (The industry average for walk-in clientele is 13% of total revenue.) Employees: Location Requirements: Service Area: Delivery Requirements: Currently 16 full time currently with 2-3 part-time employees Access for truck delivery traffic; Visibility not critical; Multi- City Clientele Currently: Semi-truck delivery- once a week; Small truck delivery- daily; No fleet currently- just one commercial van. Although the applicant contends that his business is a "quick printer" Staff believes that the Code's use of the term "quick printer" was intended to convey the least intensive print shop which currently within the industry is referred to as "copy shop". Our code does not list "copy shop" as a permitted use. Rather, our code allows "quick printer" within the "C-1 Neighborhood Commercial" zoning district and Town Center zoning district, and "commercial printer" within the "C-2 General Commercial" zoning district and "printing, bookbinding, engraving, and publishing plants" within the "1-1 Light Industrial" zoning district. No definition is provided in the code for either "quick printer" or "commercial printer". We look to the intent of the zoning district to further describe what uses are appropriate. Section 20-231 describes the "C-1 Neighborhood Commercial" zoning district as follows: The C-1 Neighborhood Commercial District consists of lands abutting principal streets, the frontages of which are especially adaptable to selected low-traffic generating uses. Adjoining these lands are residential districts that would be adversely affected by a greater diversification of uses creating serious problems of traffic movement and generation. The district is intended for lands suitable for low intense neighborhood commercial uses in close proximity to residential districts. The land uses under this district shall promote spaciousness of land uses, minimize traffic along adjacent thoroughfares and within residential districts, promote aesthetic and architectural harmony, attractiveness, and compatibility with nearby residential districts and within the community, and abide by the performance and development standards of the city, county, and U.S. government. Section 20-251 describes the "C-2 General Commercial" zoning district as follows: The lands of the C-2 General Commercial District are to be used by a variety of commercial operations which serve the commercial needs of the community. The purpose of this district is to permit the normal operation of the majority of general commercial uses under such conditions of operation as will protect abutting residential and other noncommercial uses, minimize the interruption of traffic along adjacent thoroughfares, promote aesthetic and architectural harmony, attractiveness, and compatibility within the community, and abide by the performance and development standards of the city, county, state and U.S. government. This District is intended for lands adjacent to or easily REGULAR AGENDA ITEM 500 MA Y 24, 2004 serviced by collector and major arterial roads adaptable to higher traffic generating general commercial uses. The "C-l Neighborhood Commercial" zoning district is intended for low intensity uses which service a portion of the City. The "C-2 General Commercial" zoning district, is intended to service a larger clientele base, such as the entire community, as described above. Creative Printing and Publishing is a more intensive use than that described under the "C-l" district. Furthermore, it is relocating for the opportunity for further expansion. Although it is a use that we wish to have remain in the City of Winter Springs, it is not a use that fits within the "C-l Neighborhood Commercial" district. The applicant would be better served to locate in an area that is more suited for industrial-style buildings and uses and to an area that will not limit his future opportunities for further expansion including the expansion of his delivery fleet. Furthermore, it probably would not be as economical for the applicant given the aesthetic and site plan requirements that he would be required to comply with under "C-l" if Creative Printing and Publishing were to be permitted in the "C-l Neighborhood Commercial" district, in contrast with either the "C-2 General Commercial" or "1-1 Light Industrial" zoning districts. STAFF RECOMMENDATION: Staff recommends Denial of the Creative Printing and Publishing's request to be considered a permitted use within the "C-l Neighborhood Commercial" district, subject to the City Attorney's review and comment. COMMISSION ACTION: ATTACHMENTS: A- Existing photos of site on US 17-92 B- Sampling of data supplied by the applicant: "What is a Quick Printer?" by Jill Roth REGULAR AGENDA ITEM 500 MA Y 24, 2004 ATTACHMENT A Existing photos of site on US 17-92 \ \ \ ....................................................................................................................................................................................................... . , . REGULAR AGENDA ITEM 500 MAY 24, 2004 ATTACHMENT B Sampling of data supplied by the applicant PR1~TER A PRIMEDIA Publication WHAT IS A QUICK PRINTER? JILL ROTH Jun 1, 199912:00 PM E-mail this article Pundits declare there are no quick printers. Industry observers proclaim quick printers are really just copy shops. Experts announce quick printers are simply another flavor of commercial printers. Quick printers even assert that they are business printers, imagers, document producers or even marketing consultants. So what happened to the steady, dependable, easily identifiable quick printer? Like everything else in our industry, this segment has become blurred. After talking to quick printers from across the country, regardless of what they might call themselves in public, it is clear that this segment is distinctive and different from the rest of the graphic arts industry. "The quick printer segment exists," asserts Lou Laurent of Laurent Associates in a recent study conducted by the Graphic Arts Marketing Information Service of Printing Industries of America (GAMIS/PIA). "It can be defined and differentiated. More important, it is continuing to satisfy a significant part of the print communications needs of major North American corporations." Because of the misunderstanding about this market segment, GAMIS undertook this study in late 1998 in the hopes of developing a clear view of the quick printing market. In the final analysis, the study defined a quick print business model that exists today. This, then, is the profile of the quick printer business in 1999 as determined by GAMIS. There are around 24,800 firms that can be said to provide offset printing, network publishing, convenience copying and post-printing services. These are the types of services that "quick" printers offer, but they have other distinct characteristics. Quick printers may have up to 20 employees, multiple locations and revenues exceeding $2 million. However, they typically operate from a single storefront location and have fewer than 10 full-time employees. The average annual revenues of these companies fall between $600,000 and $800,000, but it must be pointed out that extremes abound. Actual sales figures per year can range from $150,000 to $32 million. We tend to think of quick printers as relying on walk-in customers for the bulk of their business. And while this may have been true in the past, many of these firms are refocusing their resources on local corporate accounts. As part of their changing business strategy, they are proactively pursuing corporate business instead of waiting for the customer to walk through the door, says Laurent in the GAMIS study. The array of quick printers who began in retail locations but have shifted to corporate clients is startling. Take Gordon Knowles of Perfect Image Printing (Charlotte, NC), for example. In 1981, when his shop opened, walk-in customers were responsible for the firm's huge success. "By 1991," says the printer, "we had outgrown our location and realized that all ou r retail business consisted of wedding invitations, $6 rubber stamps and $.10 copies. The business had reached a point at which we were spending an hour on a $10 job. It just wasn't worth our while anymore." REGULAR AGENDA ITEM 500 MAY 24, 2004 In making the change, Knowles developed a marketing plan that involved hiring a full-time outside salesperson. "This, together with a new focus on printing rather than copying, resulted in our average order size being doubled," explains the printer. There is no doubt that quick printers are committing more resources to their corporate accounts. During the 1993-1998 period, quick printers' dependence on walk-in business decreased from 27 percent to 13 percent. When asked to project their future business direction, quick printers believe this is a continuing trend. Another distinguishing characteristic of quick printers is their emphasis on "behind the counter" printing and finishing services. In addition to offset printing, these services often include high-volume copying, presentation graphics and network publishing (corporate manuals and docume.ntation). "Although quick printers are a distinct market segment," explains Laurent, "their products and services frequently overlap those provided by convenience copy centers and commercial printers. This functional overlap is one of the reasons why quick printers are sometimes hard to identify." One of the ways to better understand the business differences among the three segments is to view each one as being a location on the print production chain. At one end is the copy center. At the other is the high-end commercial printer. Depending upon the level of services that a firm provides, it can move up the print chain or remain where it is. "The chain depicts increasingly complex businesses, with greater value-added offerings and more intense product and service commitments," observes the study. It reflects how quick printers see the evolution of their business during the 1998-2003 period. The question remains whether technology and new customer demands will change the basic nature of the quick printer in the years to come. The GAMIS study revealed that, in fact, quick printers aren't necessarily quick. Their typical job turnaround is actually greater than 24 hours. While their response is usually faster than commercial printers, they generally do not provide the on-demand printing services common among convenience copy centers. As we move toward the 2003 timeframe, improved response by quick printers will be a more critical issue, according to the GAMIS study. "Quick printers will fall under more pressure to compete with the response times of convenience copy centers and will be offering a greater range of color printing services during the next few years." The research states that even though faster job turnaround will be required, quick printers' use of non- offset printing technologies will not change appreciably. This trend probably is due to the use of more efficient production workflows, including presses with faster makeready and computer-to-plate/digital press capabilities. "The challenge for quick printers by 2003 will be to provide faster turnaround on jobs that include more spot and process color," states the GAMIS study. The face of quick printing already has been altered. During the 1993-1998 period, the number of quick printers in North America decreased by four percent. Laurent states in the GAMIS study that this decline will gradually continue through 2003. Most of the firms disappearing from the market have fewer than five full-time employees. "Driving much of the thinning quick printer ranks is competitive pressure, poor business management skills, demanding franchise organizations and continuing financial pressures," states Laurent. "The outcome will be fewer, but stronger businesses." There are signs already that franchises are closing poorly performing stores to reposition their resources on locations with greater sales potential. The resources that franchises offer include business training, equipment evaluations and promotional programs. The increased resources that franchises can provide to strengthen their organizations will create added strain on independent firms. Whether independent or franchise, quick printers all face the same market pressures. Survival will depend on building infrastructures that support best management practices. The study anticipates that there will be an increase in the percentage of franchise firms in North America as we move into the next century. Supporting this trend, relates Laurent, are current data indicating that franchise firms generate about $200,000 more in annual revenues than independent firms. Independents average annual sales of $600,000; franchise firms average about $800,000. REGULAR AGENDA ITEM 500 MA Y 24, 2004 It is entirely possible that the quick printing industry may take on different aspects in the coming years. Quick printers become trade service firms. They become commercial printers. They remain as quick printers or add new locations. "Whatever direction a quick printer takes in the coming years, there can be little doubt that these firms will continually change the range of products and services they offer," observes Laurent. The GAMIS study suggests the major changes will be to add prepress services, broaden print services and expand into post-printing services. By 2003, the study projects that quick printers will double their use of process color and almost double the number of spot color jobs they produce. As a result, quick printers will be upgrading existing offset presses or purchasing multi-color presses during the coming three to four years. The importance of non-offset devices will continue to expand during the 1999-2003 period. Color copiers, in particular, continue to provide better performance at lower copy costs. Combined with RIPs, color copiers are well suited for digital color proofing and the presentation graphics market. The GAMIS study opines that the result will be an approximate 36 percent increase in quick printers' use of color copiers by 2003. In addition, expect to see quick printers join the ranks of firms offering digital wide format output. This type of technology provides "a business extension that is fully compatible with existing corporate and POP business," points out Laurent. "The entry costs are low and wide-format printers are not complex devices to operate." While the use of color is growing, black-and-white, especially in networked printers handling high volumes, will continue to find its place in the sun. The GAMIS study estimates that the utilization of these devices will increase more than 200 percent by 2003. "While quick printers build stronger digital network connections with their corporate accounts, revenues from network publishing services will increase significantly," asserts GAMIS. The research organization also projects that by 2003 spot color will routinely be included in these documents as newer printing engines incorporate higher speed imaging to meet market demands. What types of customers are demanding "quick print" services? A typical customer mix includes corporate business, retail, manufacturing, health care, education and ad agencies. The documents that are most often produced include product information data, speCification sheets, newsletters, flyers and catalogs (both black-and-white and spot color). Interestingly, many of the print buyers interviewed for the study had strong views on the types of products and services that quick printers should offer in the years to come. Less than 40 percent of respondents expected quick printers to develop internal creative and design services. Many of the buyers already have these capabilities in-house, especially retailers. On the other hand, there appears to be widespread need for mailing/fulfillment and wide format printing services. Quick printers are already getting involved with kitting, fulfillment, mailing and other post- printing services--a trend that is expected to accelerate in the next few years. Most corporate accounts are producing posters, trade show exhibits and other pOint-of-purchase products. They need fast turnaround and usually provide the prepared digital file to the output provider. Therefore, the quick printer essentially functions as an output service providernproducing the POP media and mounting or laminating the output. In total, the biggest opportunities for quick printers from now until the year 2003 appear to be in post- processing services, wide format and network publishing services. Although the lines continue to blur around the quick print market segment, and today's quick printer may be tomorrow's commercial printer, this is an entrepreneurial group destined to remain an active participant in the graphic arts. For more information, please see the series of charts on pages 82 to 87 of the June 1999 American Printer. To: Mayor John Bush, Commissioners Miller, Blake McGinnis, McLeod, Gillmore From: Kathleen and Richard Roy Re: Wade Street Print Shop We regret to inform you that we have withdrawn our contract to purchase the location listed above. Although we believe Creative Printing would make a wonderful impact on the business and local community, your staff was unwilling to support neither permission to allow our print shop nor change to C2. We are willing to fight for our property rights, however, the costs that the city was going to impose to get those rights was prohibitive. It is sad, because it really would have been a nice place for the business, it would have been good for the city, and we have always felt a part of the Winter Springs community both personally and professionally. The Roys