KEARNEY STREET CORRIDOR SITE PRIORITIZATION AND RECOMMENDATIONS - - PowerPoint PPT Presentation

KEARNEY STREET CORRIDOR SITE PRIORITIZATION AND RECOMMENDATIONS

PRESENTATION TO CITY COUNCIL | APRIL 25, 2017

I. OVERVIEW OF STUDY II. RETAIL TRENDS & RECOMMENDATIONS III. PLACEMAKINg STRATEgIES IV. SITE SELECTION V. DEVELOPMENT FACILITATION STRATEgY

KEARNEY STREET CORRIDOR

PROjECT SChEDULE

NOV DEC jAN FEB MAR APRIL MAY

PhASE 1: MARKET RESEARCh AND ANALYSIS

• Kick-Ofg Meeting with Stafg
• Physical conditions inventory

and assessment

• Market Analysis:

Trade Area, consumer surveys, retail sector identifjcation, residential opportunity

• First Public Workshop
• First Presentation to City Council

PhASE 2: SITE PRIORITIZATION PLAN

• Defjne sites to target for

development

• Presentation to

City Stafg PhASE 3: STRATEgIES & INCENTIVES PLAN

• Review of City Economic

Development Inititatives and Incentives

• Final Presentation to City Council
• Final Report: inventory, market

analysis, and implementation steps for redevelopment

COMPLETE COMPLETE COMPLETE BY MAY 2017

ThE bACKSTORy - gEnERAl RETAIl ONLINE RETAILINg hAS DRAMATICALLY ChANgED ThE RETAIL ENVIRONMENT (AMAZON IS ChANgINg ThE WORLD OF US RETAILINg) 90% OF RETAIL SALES STILL TRANSACTED IN BRICK AND MORTAR STORES NOW NIChE BUSINESSES ARE COPYINg AMAZON’S MODEL OThER SAVVY RETAILERS WATChED AMAZON AND CREATED gOOD WEBSITES AND UPPED ThEIR ONLINE gAME qUICKLY

RETAILER hEALTh 2016: 9 RETAILER BANKRUPTCIES 1,400 STORE CLOSURES SO FAR IN 2017: 10 RETAILER BANKRUPTCIES 2,880 STORE CLOSURES ESTIMATED 8,600 CLOSURES BY END OF ThE YEAR.

RETAILER hEALTh

SPRINgFIELD RETAIL BUSINESS TRENDS

SOURCE: REFERENCE USA

FROM 2011 – 2016, 4.2% AVg. ANNUAL TAxABLE SALES gROWTh LAST 12 MONThS, IN ThE SPRINgFIELD AREA, 29% OF ThE POPULATION BOUghT SOMEThINg ONLINE IN KANSAS CITY AREA: 30% IN ST. LOUIS AREA: 30% IN ThE COLUMBIA AREA: 32% EVEN IN ThE BENTONVILLE, ARK. AREA: 29% SPRINgFIELD RETAIL BUSINESS TRENDS SOURCE: MODOR, ESRI AND gFK MRI

CLOThINg & ACCESSORIES DEEP VALUE RETAILERS ALThOUgh ThE NATIONAL RETAIL MARKET IS FACINg ChALLENgES, ThE DEEP VALUE RETAILERS ARE gROWINg FITS WITh DEMAND OF BUDgET CONSCIOUS hOUSEhOLD PROFILE IN TRADE AREA

RETAIL ChURNINg

• ChAngIng DEMOgRAPhICS AnD ShOPPER TREnDS hAvE

RENDERED SOME TYPES OF DEVELOPMENT AND SOME TYPES OF STORES NO LONgER RELEVANT; I.E.:

• ThE EnClOSED MAll
• STRIP CEnTERS AnChORED by bIg bOxES

& jUNIOR ANChORS

• gORDMAn’S, bIg lOTS & OThERS SEllIng ClOSE

OUT OR MANUFACTURER ExCESS INVENTORY ThANKS TO OVERSTOCK.COM

• FuRnITuRE STORES MAy bE IMPACTED by

ONLINE RETAILERS SUCh AS WAYFAIR

• REgIOnAl MAllS AnD STRIP CEnTERS OFTEn FuEl RETAIl

DEVELOPMENT A MILE IN EIThER DIRECTION

• ThE lOSS OF ThESE bIg STORES WhICh DRIvE TRAFFIC CAn

hAVE A MAjOR RIPPLE EFFECT WIThIN A RETAIL CORRIDOR

WhAT ShOULD LOCAL gOVERNMENTS DO?

• CAll, EMAIl, SnAIl MAIl EvERy STATE AnD FEDERAl

REPRESENTATIVE TO LOBBY FOR A REqUIREMENT ThAT TAxES INTERNET SALES AND ThAT RECOgNIZES ThE specific LOCATION OF ThE BUYER

• CAll yOuR STATE REPRESEnTATIvES AnD bE

SURE YOU UNDERSTAND WhAT ThEY WILL BE DOINg WITh ThEIR nEW-FOunD AMAzOn SAlES TAx DOllARS

WhAT ShOULD LOCAL gOVERNMENTS DO? YES, AMAZON WILL BE COLLECTINg STATE SALES TAxES, BUT WhAT WILL ThE YIELD BE TO ThE CITY? WhAT ABOUT ThE OThER ONLINE RETAILERS WhO MAY NOT hAVE A PRESENCE IN YOUR CITY? SALES TAx REVENUES ARE A MAjOR SOURCE OF REVENUE FOR CITIES ThE ShIFT IN ShOPPINg SOURCES hAS UPENDED ThIS REVENUE PICTURE AND NOW ThE FURThER EVOLUTION OF ThIS TREND IS ThE CLOSURE OF STORES

UNDERSTANDINg ThE FINANCIAL IMPACTS OF REVENUE LOSSES

• AnAlyzE TAxAblE SAlES PER RETAIlER AnD COMPARE

WITh PUBLIShED, NATIONAL SALES DATA

• DETERMInE WhAT ShARE OF yOuR SAlES TAx REvEnuE

IS FROM LOCAL RETAILERS, AND WhAT ShARE IS FROM NATIONAL RETAILERS

• REvIEW nATIOnAl RETAIlERS; ARE Any In yOuR COMMunITy

AT RISK? hAVE ANY ANNOUNCED CLOSURES OR BANKRUPTCY? WhAT IS YOUR COMMUNITY’S ExPOSURE?

• DO yOu hAvE DEvElOPMEnT bOnDS OuTSTAnDIng bACKED

BY RETAIL DEVELOPMENT REVENUES? DO ANY OF ThE BONDS CARRY A gO BACKUP?

• WhAT MIghT hAPPEn IF RETAIlERS x, y, OR z ClOSED?

WhAT ShOULD LOCAL gOVERNMENTS DO? SUMMARY

• unDERSTAnD yOuR RETAIl bASE, ThE ASSOCIATED

PROPERTIES, AND TAx REVENUES

• ThInK AbOuT DEvElOPMEnT OR REDEvElOPMEnT OPTIOnS
• DOn’T bE TOO quICK TO PROvIDE FInAnCIAl InCEnTIvES

WIThOUT ANALYZINg ALL OF ThE COMPONENTS OF ANY PROPERTY OWNER OR DEVELOPER PROPOSAL

RETAIL gAP ANALYSIS

FOOD & BEVERAgE $10.6 M $48 M CLOThINg $2.4 M $12.1M ELECTRONIC / APPLIANCE $8 M $14.2 M PTA STA $95 MILLION UNMET RETAIL DEMAND

FOOD & BEVERAgE FOOD hALLS

FOOD hALLS REVIVAL FOOD hALL IN ChICAgO

FOOD hALLS ThE SOURCE FOOD hALL IN DENVER

FOOD TRUCK COURT REVITALIZE NEIghBORhOODS OFFERINg MORE DININg OPTIONS lOWER START-uP COSTS ThAn BRICK AND MORTAR FAMILY FRIENDLY WITh LIVE MUSIC

ADAPTIVE REUSE FOR RESTAURANTS FOOD & BEVERAgE STORES

FOOD & BEVERAgE STORES POTENTIAL ADAPTIVE REUSE

PLACEMAKINg STRATEgIES POPS 66 SODA RANCh ARCADIA, OKLAhOMA

PLACEMAKINg STRATEgIES ROUTE 66 ECONOMIC IMPACT

“ThE RESTORED ROUTE 66–ThEMED MOTEL, RESTAURANT AND gIFT ShOP MAY NOT hAVE A hIgh-DOllAR buSInESS vOluME RElATIvE TO ThE MUCh LARgER REgIONAL AND STATE ECONOMIES, BUT ThEY ANChOR ThE DOWNTOWN IN MANY SMALL COMMUNITIES AND CAPITALIZE ON A ROUTE 66–LINKED PAST AND FUTURE.”

• ROuTE 66 ECOnOMIC IMPACTy STuDy

PLACEMAKINg STRATEgIES CRUISINg & CUSTOM CARS

POP UP CRUISINg EVENT AS A PILOT PROjECT CLASSIC CAR ShOWS AT MCDONALD’S AND CULVER’S PUBLIC INPUT FROM BABY BOOMERS WhO hAVE FOND MEMORIES OF CRUISINg ON KEARNEY ROUTE 66 MOThER ROAD FESTIVAL AND CAR FAIR IN SPRINgFIELD,IL, ATTRACTS 80,000 ATTENDEES AND gENERATES $1 MILLION INTO ThE LOCAL ECONOMY

NEIghBORWOODS IF ENOUgh RIghT OF WAY IS CREATED AND MODOT WOULD ENTER INTO A gROWINg TOgEThER AgREEMENT, ThEY WOULD AgREE TO ESTABLISh AND MAINTAIN ThE TREES OR RESERVE FUNDINg TO PLANT AND ESTABLISh ThE TREES ThROUgh ThE 1/4 CENT CTLI FUNDS PLACEMAKINg STRATEgIES TREE PLANTINg

PLACEMAKINg STRATEgIES CROSSWALKS & PEDESTRIAN SAFETY

PLACEMAKINg STRATEgIES IMPROVE VISIBILITY AND CONNECTIVITY TO DOLINg PARK CROSSWALKS AT INTERSECTIONS OF

• KEARnEy & RObbERSOn
• KEARnEy & bOOnvIllE

WAYFINDINg SIgNAgE ON KEARNEY STREET

SITE SELECTION

ELECTRONICS 30,000 FOOD & BEVERAgE 112,500 hEALTh & PERSONAL CARE 12,000 CLOThINg 40,500 TOTAL 195,000 Sq FT

SITE SELECTION: PROPOSED FOOD hALL SITE BOWLINg ALLEY O’REILLY AUTO PARTS CAR WASh

jOhNSTON AVE

FOOD hALL O’REILLY AUTO PARTS FOOD TRUCK COURT

jOhNSTON AVE B R O A D W A Y

PROPOSED FOOD hALL & FOOD TRUCK COURT

SITE SELECTION: RETAIL ESTABLIShMENT TO DOLINg PARK R O B B E R S O N B O O N V I L L E

SITE SELECTION: RETAIL ESTABLIShMENT S U M M I T BAPTIST BIBLE COLLEgE

SITE SELECTION: MOTOR COURT D E L A W A R E A V E WELLER AVE

SITE SELECTION: MOTOR COURT MOTOR COURT ART gALLERIES, MUSIC VENUE

DEVELOPMENT FACILITATION STRATEgY IF ThE CITY DECIDES TO ExTEND INCENTIVES ALONg ThE KEARNEY STREET CORRIDOR IT ShOULD DO SO IN SUCh A WAY AS TO MAxIMIZE: FLExIBILITY – ThE ABILITY TO gROUP PROPERTIES TOgEThER FOR A lARgE PROjECT, OR ThE AbIlITy TO InCEnT SInglE-SITE PROjECTS AS APPROPRIATE: OVERSIghT – ThE ABILITY FOR ThE CITY TO EVALUATE EACh PROjECT WITh RESPECT TO ITS NEED FOR ANY INCENTIVE, ThE RETURN ON INVESTMENT TO ThE CITY, ThE ABILITY OF ThE PROjECT TO MEET ECONOMIC DEVELOPMENT gOALS, AND ThE ABILITY FOR ThE CITY TO OVERSEE ThE USE OF ANY INCENTIVE REVENUES ALONg ThE CORRIDOR

DEVELOPMENT FACILITATION STRATEgY LAND CLEARANCE FOR REDEVELOPMENT AUThORITY (LCRA) ChAPTER 99 OR ChAPTER 353

• lAnD ACquISITIOn
• blIghT REMOvAl
• PROPERTy TAx AbATEMEnT

DEVELOPMENT FACILITATION STRATEgY

COMMUNITY IMPROVEMENT DISTRICT CID REVENUES CAN BE USED FOR:

• STAFF (A DIRECTOR OR COORDInATOR

FOR ThE CORRIDOR) ThIS PERSON WOULD REPORT TO A CID BOARD OF DIRECTORS, WhICh CAN BE APPOINTED BY ThE CITY.

• MARKETIng
• TRAInIng FOR lOCAl buSInESS OWnERS
• PublIC InFRASTRuCTuRE IMPROvEMEnTS
• PRIvATE IMPROvEMEnTS AnD lAnD

ACqUISITION (IF IN A BLIghTED AREA)

DEVELOPMENT FACILITATION STRATEgY

RECOMMENDED STRATEgY: LCRA TAx ABATEMENT + COMMUNITY IMPROVEMENT DISTRICT

• ESTAblISh An lCRA REDEvElOPMEnT AREA TO gIvE ThE CITy

ThE ABILITY TO ABATE TAxES FOR A DESERVINg PROjECT(S)

• ESTAblISh A COMMunITy IMPROvEMEnT DISTRICT TO

gENERATE REVENUE VIA:

• ADDITIOnAl SAlES TAx;
• PROPERTy TAx; OR
• SPECIAl ASSESSMEnT
• 0.5% CID SAlES TAx PRODuCES APPROx. $1MIllIOn;

$600,000 WIThOUT WALMART

• ThE CID COulD bE PAIRED WITh TAx AbATEMEnT TO

DERIVE ThE SAME BENEFIT AS TIF

ECONOMIC INCENTIVES COMMERCIAL LOAN PROgRAMS BUSINESS DEVELOPMENT LOAN PROgRAM

• uSE OF FunDS: ACquISITIOn, buIlDIng COnSTRuCTIOn

OR REhAB

• 2.75% FIxED InTEREST lOAn;

UP TO A 20 YEAR TERM

• MuST MEET AT lEAST 1

NATIONAL OBjECTIVE:

• bEnEFIT lOW/MODERATE (lMI)

hOUSEhOLDS

• CREATE OR RETAIn lMI jObS

(1 jOB FOR EVERY $35K LOANED)

• AID IN ELIMINATION OF SLUMS OR BLIghTED CONDITIONS

CAFE CUSCO

ECONOMIC INCENTIVES COMMERCIAL LOAN PROgRAMS MICROENTERPRISE / BUSINESS INCENTIVE LOAN PROgRAM

• uSE OF FunDS: FuRnITuRE, FIxTuRES,

EqUIPMENT, WORKINg CAPITAL

• MuST MEET AT lEAST 1 nATIOnAl ObjECTIvE
• low / Moderate Income Area benefjt
• job Creation for low/Moderate Income Persons
• 5% FIxED InTEREST RATE, 12 yEAR TERM

ECONOMIC INCENTIVES BROWNFIELDS PROgRAM ASSESS, CLEAN UP, AND FACILITATE REDEVELOPMENT / REUSE OF POTENTIALLY CONTAMINATED PROPERTIES PhASE I AND PhASE II ENVIRONMENTAL ASSESSMENTS PhASE I DOES NOT TYPICALLY INCLUDE ACTUAL SAMPLINg; PhASE II ASSESSMENTS ARE CONDUCTED IF CONTAMINATION IS DETECTED REVOLVINg LOAN FUND PROVIDES LOW INTEREST LOANS FOR PRIVATE LAND OWnERS AnD Sub-gRAnTS TO nOn-PROFITS FOR ENVIRONMENTAL REMEDIATION

WhITE RIVER BREWINg

ECONOMIC INCENTIVES BROWNFIELDS PROgRAM MO BROWNFIELDS VOLUNTARY CLEANUP PROgRAM (BVCP) MO DEPT. OF NATURAL RESOURCES OVERSEES SITE CLEANUP AND ASSURES COMPLIANCE WITh STATE gUIDELINES; APPLICANT PAYS FOR COSTS MO BROWNFIELD REDEVELOPMENT PROgRAM ThE MO DEPT. OF ECONOMIC DEVELOPMENT PROVIDES FINANCIAL INCENTIVES FOR REDEVELOPMENT AND REVITALIZATION FOR ENVIRONMENTALLY ChALLENgED PROPERTIES; BVCP OVERSEES SITE CLEANUP

jORDAN VALLEY PARK

KEARNEY STREET CORRIDOR ThANK YOU. qUESTIONS? ANDY STRUCKhOFF ASSOCIATE DIRECTOR ANDY.STRUCKhOFF@PgAV.COM jENNY RYAN PROjECT MANAgER jENNY.RYAN@PgAV.COM (314) 231-7318 PgAVPLANNERS.COM