Charlottesville City Market District Study 3/12/2013 (c) Market Ventures, Inc. 1 Charlottesville City Market District Economic Feasibility Study Public Meeting March 11, 2013 Agenda 1. Project Goals & Study Components 2. Comparable Markets & Key Elements of Success 3. Market Research 4. Site Analysis 5. Development Principles 6. Design Competition 7. Concept Scenarios 8. Next Steps
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Charlottesville City Market District Study 3/12/2013
(c) Market Ventures, Inc. 1
Charlottesville City Market DistrictEconomic Feasibility Study
Public MeetingMarch 11, 2013
Agenda
1. Project Goals & Study Components
2. Comparable Markets & Key Elements of Success
3. Market Research
4. Site Analysis
5. Development Principles
6. Design Competition
7. Concept Scenarios
8. Next Steps
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Project Goals
1. Assess the viability of a “market district” on the blocks around City Market
2. Create an improved, permanent home for City Market
3. Create a realistic strategy for realizing the economic development potential of the Market’s current, city‐owned parking lot site and the adjacent privately‐owned parking lots
Study Components
Implementation Strategies
Roles and partnerships Operations pro forma Development cost estimate
Concept PlanDevelopment principles
and functionsTenant mix and sales
projections Operations model Co‐location plan and issues Public space standards
Market StudyComparable
markets researchExisting
competitionCustomer demand
analysis Supply analysis Impact on existing stores Economic impact
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Comparable Markets
• Task: “…identify successful markets and market districts in similarly‐sized communities and provide information about ownership, tenant mix, amenities, design guidelines, and key factors for success”
• Approach
– Define what is a “market district”
– Identify examples of successful market districts
– Determine if there are successful market districts in cities of similar size to Charlottesville (MSA pop. 204,000, MSA rank 208)
– Identify key factors for success for markets similar to City Market
Public Market Types
Num
ber
Complexity
Seasonal open-airOne day 3 day
Nearly 8,000 in USA
Wide range of sizes
Minimal or no infrastructure
City Market currently fits within this archetype
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Public Market TypesN
umbe
r
Complexity
Indoor winter market
Seasonal open-airOne day 3 day
Year-round open-air, multiple sites
One day 4 day
52% increase to nearly 1,900 (USDA)
Public Market Types
Num
ber
Complexity
Indoor winter market
Seasonal open-airOne day 3 day
Market shed
Market shed characteristics:
• Simple, permanent structure
• Simplify vendor set up and provide weather protection
• Often have electricity, water, and lighting
• A few have garage doors and heating
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Public Market TypesN
umbe
r
Complexity
Indoor winter market
Market hall
Seasonal open-airOne day 3 day
Market shed
Market hall characteristics:
• Permanent indoor facility regulated by health department
• 3‐7 day/wk operation
• Dedicated management
• Often food production within facility
Public Market Types
Num
ber
Complexity
Market district
Indoor winter market
Market hall
Seasonal open-airOne day 3 day
Market shed
Market District Characteristics:
• Multiple city blocks
• Multiple interconnected functions/types of businesses and programs
• Multiday (daily) operation
• Indoors and outdoors
• Branded place
• Dedicated, sophisticated management
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Successful market districts in smaller cities: Charleston City Market• Pop. 682,000 (3.3x > Charlottesville,
MSA rank 78)
• Market Street deeded to city in 1788 with stipulation that remain a public market indefinitely
• City leases historic market facilities (40,000 sf) to private real estate firm
• $5.5 m renovation in 2011
• Over 100 vendors, open daily
• Biggest tourist attraction in city
• Product mix mainly geared toward tourists – working to increase appeal for residents with fresh food
Successful market districts in smaller cities: Rochester Public Market
• Population 1.04 million (5x > Charlottesville, MSA rank 51)
• Established 1905
• Owned by City of Rochester, operated by Dept of Parks & Rec
• Year‐round operation; retail sheds open Tuesdays, Thursdays, Saturdays; Sunday and evening events
• ~1,000 parking spaces
• 40,000+ customers Saturday
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Successful market districts in smaller cities: Rochester Public Market• Designated district within Rochester’s zoning code
• Branded as Public Market District
• Gated boundary
• Mix of outdoor and indoor functions, wholesale and retail
• Private real estate on periphery
• Dedicated city management staff
Successful market districts: City Market, Kansas City
• Pop. 1.78 million (8.7x > Charlottesville, MSA rank 29)
• Established 1857
• Owned by City, operated by private real estate mgt firm
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Site Analysis: City Market
• Existing Conditions– Parking lot and closed street without shade or
site amenities; limited electricity– Significant slope in northeast corner– 100 spaces, most with 8’ stall width, some much
smaller– Without shade or cover, the site can become
very hot– No water or bathrooms– Mixture of vendor types results in break‐down
issues (some stay, some go)– Adjacent to surface parking lot and parking
garage
• Desired Conditions– Maintain close proximity to Downtown Mall,
parking, and connect to adjacent neighborhoods
– Flat space that permits 10’x10’ and 10’x20’ tents and farmers’ trucks
– Room for 130‐140 vendors (40 vendors call weekly looking for space)
– Provide site amenities: electricity, water, bathrooms
– Provide shaded seated areas and special event/education space
– Create clustered eating area where vendors can stay longer
UVa temperature study 2011
Existing businesses around City Market site
• Restaurants– South Street Brewery– Bang!– Mono Loco– Flat (creperie)– Miyako
• Retail– Roxie Daisy (home wares, jewelry)– Sun Bow Trading Company (textiles)– Second Street Gallery
• Arts – Bon (performance venue)– Live Arts (volunteer theater)– Light House Studio (filmmaking studio)
• Services – Oasis Day Spa and Body Shop– 200 South Street Inn– Pro Tax– Rifkin Associates– Wells Fargo– Gibson Design Group
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Site Analysis: Connections to Downtown Mall
Site Analysis: Primary Undeveloped Areas
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Site Analysis: Undeveloped Areas‐ City Controlled
Design Competition
Groundworks Collaborative LLC
• Winning design entry creatively addressed maximizing development potential on both parking lots
• Unlikely to be constructed because underground parking too expensive and inadequate demand for that much square footage (needs to be phased)
• City Market too small and spread out
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Research Conclusions• Small but growing population
• High and increasing household income
• Very high educational attainment
• Very strong and growing competition from supermarkets
• Small number of specialty food stores
• Existing indoor market already (Main Street Market)
• Expanding number of restaurants
• Increasing farmer interest in direct marketing
• Proximity of proposed market district to downtown mall district would result in competing and confusing district themes
• Potential to expand and improve outdoor farmers’ market, add another outdoor farmers’ market day, and add indoor winter market but insufficient demand or supply for daily market activity
Development Principles1. Keep City Market in downtown Charlottesville
2. Build on the success of current weekly outdoor producer‐only market
3. Maintain an open‐air, distinctly different shopping experience from supermarkets
4. Accommodate phased growth of City Market
5. Create a dynamic downtown place that attracts the region’s residents and visitors
6. Promote healthy lifestyles and a sustainable community
7. Add site amenities: bathrooms, electricity, water, places to sit, shade
8. Maximize development potential of the city’s parking lot with a realistic development scenario that can move forward in the near term
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Site Options
0.48 acre lot, 1.3 acre project area
0.81 acre, 1.3 acre project area
Concept Scenario 1: Maintain City Market at current site and make improvements
• Concept– Remove city‐owned building that
houses the Market office and Parks’ materials
– Create a grassy plaza at the sloped corner of Water and 1st Streets to provide customer seating, public bathrooms, ADA accessibility, and performance space
– Grade, repave, and add trees to the parking lot while widening parking spaces to fit 10’ wide vendor tents
– Add electricity and water
– Potentially add shed structures
• Benefits– Consistency of operation
– Know this has been a successful location
– Maintains open‐air atmosphere
– Near parking garage and Downtown Mall
– Address site shortcomings: stall size, seating areas, electricity, water, bathrooms, ADA accessibility
• Challenges– No opportunity for development
– Minimal opportunity for expansion
– No new revenue source to pay for site improvements
– Topography – large grade changes
– Too close to Mall to make separate lybranded district
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Concept Scenario 1: Improve City Market at current site
Concept Scenario 1: Improve City Market at current site
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Concept Scenario 1: Improve City Market at current site
Concept Scenario 1: Improve City Market at current site
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Concept Scenario 1: Improve City Market at current site
Concept Scenario 1: Improve City Market at current site
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Concept Scenario 1: Improve City Market at current site
Concept Scenario 1: Improve City Market at current site
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• Concept– Lease triangular lot at Garrett and First
(C. Lewis property) and create flat selling area and grassy seating area
– Utilize Garrett Street (between 2nd St and dead end) and 1st St. (between Garrett and RR tracks) for outdoor market on Saturday mornings
– Potentially lease edge of parking lot on Garrett between 1st and 2nd Streets
– Add electricity and water to streetscape
– Product pick‐up in 3 locations
– Parking at Water Street Garage, Monticello Avenue
– Could expand up 1st Street to Water
• Benefits– Allows development of City lot and
increased property tax; portion of sale proceeds could pay for City Market site lease and improvements
– Room for City Market to grow
– Flat
– Existing food businesses along Garrett Street creates market district opportunity,
Challenges– Requires market to move (although
minimal distance)
– Street closing (although one way, limited use)
– Cost of site improvements and leases
Concept Scenario 2: Shift City Market to Garrett Street, 1st Street, and adjacent property
Triangular Lot on Garrett Street (C. Lewis property)
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Garrett Street looking west from 1st Street
ACAC lot on Garrett Street
Standard Produce on Garrett St.
North side of Garrett Street between 1st and 2nd
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South side of Garrett Street (Gleason Building)
Glass Building on 2nd Street
Concept Scenario 2: Garrett/First Street (Option 1)
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Concept Scenario 2: Garrett/First Street (Option 2)
Concept Scenario 2: Garrett/First Street
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Concept Scenario 2: Garrett/First Street
Concept Scenario 2: Garrett/First Street
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Concept Scenario 2: Garrett/First Street
Concept Scenario 2: Garrett/First Street
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Concept Scenario 2: Garrett/First Street
Next Steps• Review of public input into draft concepts
• Vendor survey
• Cost estimating of site improvements
• Realistic scenario for private development on city‐owned lot (square feet, uses, parking requirements, property value, and real estate taxes)
• Public space standards
• Operations pro forma
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Charlottesville City Market DistrictEconomic Feasibility Study