City council 12 17-13 downtown development plan

DOWNTOWN MASTER DEVELOPMENT

Downtown San AngeloMaster Development Strategy

-- Summary of Recommendations --City Council Meeting

12/17/13


Discussion Agenda

Process to Date

Summary of Recommendations

Implementation Timetables

Work Accomplished Since Submission

Next Steps


Process to DateAuthorized and Performed to Date:

Phase 1: Implementation Action PlanTask 1.1: Investment/Horizontal Land AnalysisTask 1.2: Market-Based ProgrammingTask 1.3: Analyze Current Policy ContextTask 1.4: Evaluation of Current Ownership IssuesTask 1.5: Project and Location PrioritizationTask 1.6: Implementation Timetable (1, 2-4, 5-10 yrs)

Task 1.7: Project PackagingTask 1.8: Identify Potential Investors/DevelopersTask 1.9: City Review


Process to DateAuthorized and Performed to Date:

Phase 1: Implementation Action PlanTask 1.1: Investment/Horizontal Land AnalysisTask 1.2: Market-Based ProgrammingTask 1.3: Analyze Current Policy ContextTask 1.4: Evaluation of Current Ownership IssuesTask 1.5: Project and Location PrioritizationTask 1.6: Implementation Timetable (1, 2-4, 5-10 yrs)

Task 1.7: Project PackagingTask 1.8: Identify Potential Investors/DevelopersTask 1.9: City Review

Milestones

• Completed Phase One Analysis 8/13• Delivered Strategy Document 9/13• Delivered MOU to City 9/13• Private Underwriting 9/13 thru 12/13• Staff Comments/Revisions thru 12/13


Anticipated StepsFuture Activity (Not Authorized / Performed):

Phase 2: Horizontal Development PositioningTask 2.1: Developer/Investor DiscussionsTask 2.2: Horizontal Funding StrategyTask 2.3: ZoningTask 2.4: Property AssemblyTask 2.5: Market OutreachTask 2.6: Marketing Team and Packaging

Phase 3: Vertical Development Positioning• Financial Analysis • Public/Private Partnership • Pricing of Public Improvements • Bond Strategy • Development Agreements

Phase 4: Construction Management/Coord.• Master Infrastructure Design • Refined Pricing Analysis• Bidding and Contract Negotiation • Public Approvals and Permitting • Utility Provider Negotiation and Contracts • Construction Management


Summary of RecommendationsIdentified Drivers of Economy

San Angelo

Labor Training Facility credit: Bowman Melton

Hotel / Hospitality credit: Marriott

Office Streetscape credit:: David Whitcomb

Mixed-Use / Retail Streetscape credit: David Whitcomb

Loft / Flex Office credit: Freese Nichols

Residential Streetscape credit: David Whitcomb

Healthcare and Seniors credit: CJG Engineers Intown Residences credit: Zillow

Energy

Education & Health Care


2011 Population 92,334 people2011 Household 39,458 households2011 Employment 46,392 jobs

Baseline Growth10 year population 5,557 people10 year household 2,488 households10 year employment 2,828 jobs

Additional Growth Expected from ASU & Energy SectorPopulation 11,381 peopleHousehold 5,097 householdsEmployment 5,792 jobs

Total Growth10 year population total 16,938 people10 year household total 7,585 households10 year employment total 8,620 jobs

New Development within Downtown San AngeloClass A MF Units 612 unitsRestaurants 4 restaurantsClass A Office Space 414,622 sf

Summary Sheet

Summary of Targeted Programming

Baseline 10 year growth patterns based on population and household patterns since 1980 provide approximately 5,500 new people, and 2,500 new households and jobs.

Advances and new discoveries in the energy sector, along with ASU expansion, will provide additional opportunities.

Considering baseline and additional growth expectations, we believe there will be demand for the following over 10 years:

• 6 New Restaurants

-- Provide critical mass and expand offering

• 612 New Housing Units

-- At low to medium density-- Catering to Citywide, GFAFB, ASU

• 400,000 sf +/- Employment Uses

-- Small business to light industrial users


Real Estate Analysis

Issues Analyzed:

Infrastructure

Ownership

Land Assembly

Assessed Value

Tax Generation

Historic Structures


Focus on two blocks adjacent to Chadbourne from Harris to the river

Prepare restaurant void analysis (by type) to determine areas of priority

Identify locations for new stores

Target successful regional operators

Prepare joint marketing and communication program

Pursue enhanced signage and tenant criteria program

Opportunities Analysis – Restaurant Infill









Implementation – Restaurant Infill

Short Term (1 year)• Determine restaurant void (by type)• Inventory supply (lease and sale) with owners• Identify regional successes in these voids• Prepare targeted marketing material• Hold discussions with restaurant investors -- City ED, Downtown San Angelo, Chamber and/or Master Developer (approving 2nd – 4th phases of Master Development Scope)

Medium Term (2-4 years)• Implement through completion• Goal is 3 restaurants during this period

Long Term (5-10 years)• Repeat short and medium term strategy• Goal is 3 additional restaurants during this period


Medium Density Infill

MOU has been prepared and delivered

Finalize Development Agreement

Lower Density Infill

Canvas existing regional builders once initial phase of medium density complete

Opportunities Analysis – Residential Infill









Implementation -- Residential

Short Term (1 year)• Execute Memorandum of Understanding (MOU)• Prepare and execute Development and

Disposition Agreement (DDA) during 1st Quarter 2014

• Work with Master Developer on re-zoning• Define / budget potential public improvements• Work with Master Developer on permitting -- City Administration

Medium Term (2-4 years)• Construct necessary public improvements• Work with Master Developer on marketing• Determine available sites for development in

lower density zone and reach out to regional developer/investor marketplace

-- City Public Works, Downtown San Angelo

Long Term (5-10 years)• Repeat short / medium strategy on 2nd phase


Lower Density and Light Industrial

Northern lots near rail spurWestern lots near BryantSmall business infill

Medium Density and Medical Uses

Properties near ShannonSmall business infill

Opportunities Analysis – Workplace Infill









Implementation -- Workplace

Short Term (1 year)• Inventory supply (lease and sale) with owners• Explore strategic programming concepts wiith

Shannon, Goodfellow, SAISD, ASU and other primary employers to determine their expansion and programming needs (services, amenities, hospitality, education, offices, joint ventures)

• Consider and refine existing economic development tools (TRZ, 380 agreements, reduced

permitting fees, etc)• Devise small business amenity programming

for downtown to attract new relocation• Prepare targeted marketing material• Prepare and advance targeted economic

development and marketing through Chamber and ED approaches

-- City ED, Downtown San Angelo, Chamber

Medium Term (2-4 years)• This is the time period our market assessment

has identified timing to advance opportunity

Long Term (5-10 years)• Repeat short and medium term strategy


Discussion

City council 12 17-13 downtown development plan

Business

yrs task

zoning task

project packaging task

market outreach task

location prioritization

property assembly task

marketbased programming

current policy context