LA River Revitalization Effort Assessment Implementation - - PowerPoint PPT Presentation

December 17, 2014

LA River Revitalization Effort Assessment

Implementation Opportunities

HR&A Advisors, Inc. LA River Revitalization Opportunity Assessment |2 2

HR&A is at the leading edge of civic engagement to fund, design,

• perate, and program new urban open space.

Planning Design & Construction Phased Implementation Complete

MSP Green Line Fort Mason Center OK City Ctri Pk Seattle Waterfront MOA Peavey Plaza

• Mem. Shelby Farms

Waterfront Toronto NYC The High Line B’klyn Bridge Park Cincy Fountain Sq. Boston RK G’way NYC Battery Park

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USERS NEIGHBORHOOD CITY/REGION Enjoyment Property Value Premiums Tourism Public Health New Business and Real Estate Development Spending and Multiplier Impacts Air & Water Quality Resident & Business Attraction Public Safety “Brand”

The current wave of (re)investment in great urban open space has many of the same goals as previous waves.

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You asked us to convene three series of meetings to assess the LA River Revitalization effort and recommend next steps.

• Meeting Series 1: Stakeholder Engagement – July
• Meetings Series 2: Board Committee Workshop – December
• Meeting Series 3: Presentation to Convened Leaders – TBD

HR&A Advisors, Inc. LA River Revitalization Opportunity Assessment |5 5

You asked us to convene three series of meetings to assess the LA River Revitalization effort and recommend next steps.

• Meeting Series 1: Stakeholder Engagement – July
• Meetings Series 2: Board Committee Workshop – December
• Meeting Series 3: Presentation to Convened Leaders – TBD

Private/Non-Profit Sector Lewis McAdams, Friends of the LA River Tori Kjer, The Trust for Public Land Nancy Steel, Council for Watershed Health Eric Bruins, LA County Bike Coalition Veronica Padilla and Max Podemski, Pacoima Beautiful Miguel Luna, Urban Semillas/DakeLuna Amy Lethbridge and Joseph Edmiston, the Santa Monica Mountains Conservancy LARRC Board Members Brian Moore Bruce Saito Allan Abshez Cynthia Hirschhorn Jordan Kerner Chris Rising

HR&A Advisors, Inc. LA River Revitalization Opportunity Assessment |6 6

You asked us to convene three series of meetings to assess the LA River Revitalization effort and recommend next steps.

• Meeting Series 1: Stakeholder Engagement – July
• Meetings Series 2: Board Committee Workshop – December
• Meeting Series 3: Presentation to Convened Leaders – TBD

Public Sector Terri Grant and Gary Hildebrand, LA County Watershed Diego Cardosa and Eric Carlson, Metro Enrique Zalvidar, LA City Bureau of Sanitation Gary Moore, City Engineer of the City of LA Michael Shull, LA City Department of Recreation and Parks Christine Peters, Office of Councilmember Mitch O’Farrell Greg Good, Ted Bardacke, and staffers at the Mayor’s Office Barbara Romero, City of LA Department of Public Works Commissioner

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Opportunities and Challenges

What has happened so far? Where can we go from here?

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The revitalization of the LA River is an opportunity to achieve a number of objectives.

Establish a signature open space in eastern LA to rival the beach and mountains of the coast. Improve Los Angeles metro’s brand as a place rich in non-car oriented public space. Continue to contribute to LA metro’s necessary water management strategy. Drive economic benefits, aspiring to a 500%+ return on public capital, as elsewhere.

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20 years of increasingly focused planning has been largely led by engineers.

1996 The County of LA River Master Plan approved by the Board of Supervisors 2002 The Ad Hoc Committee on the LA River is established by City Council 2003 The LA River City Department Task Force is established and chaired by the City Engineer 2006 The LA River Planning Unit is established in the Department of City Planning

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Among the most important products of that planning has been the development of various lists of viable projects.

• The LA River Revitalization

Master Plan is established and published with funding from DWP

• The LA River Project Office

is formed within the City Bureau of Engineering 2009 The LA River Revitalization Corporation is established 2013 The City Council adopts the Cornfields Arroyo Seco Specific Plan (CASP), which establishes new mixed-use zoning districts River. 2014 Army Corps of Engineers announces the selection of Alternative 20, the most comprehensive alternative in their Ecosystem Restoration Feasibility Study 2007

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Compilation, rationalization, funding and management of those projects will require unprecedented regional cooperation.

LA County Flood Control Districts Los Angeles River City of LA Other LA River-Adjacent Cities Council Districts

Source: ESRI, GIS, HR&A Advisors

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Leaders have recently undertaken a variety of relatively small capital projects and programs.

2008-2010

LA River Bike Path Albion Dairy Purchase

Source: City LA River Timeline, HR&A Advisors

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These initiatives are starting to generate a sense of the possible.

LA River Bike Path Albion Dairy Purchase

2011-2012

Glendale Narrows River Walk North Atwater Park Paddle LA Pilot

Source: City LA River Timeline, HR&A Advisors

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Despite little or no coordination of projects, which compete for funds, there is a growing sense that the River’s moment has come.

LA River Bike Path Albion Dairy Purchase Glendale Narrows River Walk North Atwater Park Paddle LA Pilot

2013-2014

NBC Universal Path

• Ed. P. Reyes Greenway

Sunnynook River Park

Source: City LA River Timeline, HR&A Advisors

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Glendale Parks and Recreation Glendale Narrows Riverwalk LA River Revitalization Corporation La Kretz Bridge The Trust for Public Land Aliso Creek and LA River Confluence

As of now, no inventory of projects exists, largely because so many entities are advancing so many projects.

Source: LA Country Department of Public Works Project Listing

City of LA Mayor’s Office Acquisition of G2 Parcel The SM Mountains Conservancy Pacoima Wash 8th Street Park The Council for Watershed Health Watershed Monitoring Program City of LA Bureau of Engineering Albion Park U.S. Army Corps

• f Engineering

Alternative 20 LA County DPW Arroyo Seco Bikeway, Sign Implementation Project Metro LA River Bikeways/ Greenway 2020 North East Trees Steelhead Park

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Connector of diverse communities and stakeholders

Achieving that level of regional collaboration will certainly require agreement on what “the LA River Project” is.

Revitalization Master Plan 32 Miles / 240 Projects Greening and Value Alternative 20 11 Miles / Ecosystem Restoration Greenway 2020 51 Miles / Bike Path Community Development Regional Economic Development Catalyst of business attraction and real estate investment Sustainability and Resilience Partial solution to increasingly dire water shortage

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Capturing the regional imagination will be necessary to securing the capital needed.

Alaskan Way

Seattle, WA $3.5b+ Infrastructure realignment and environmental restoration to rebrand the waterfront

The Big Dig

Boston, MA

$24.3b Infrastructure realignment to reconnect the city to its harbor and create open green space and real estate value

Anacostia Waterfront

Washington, DC $20b+ ($5b+ to date) Real estate investments and industrial re-use to fund public amenities & environmental remediation

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Urban Gems Regional Parks Neighborhood Parks Passive

Annual Per Acre O&M Costs

$1M+ $12,500 $5,000 $1,000 $70,000

The project will need operating dollars as well. Park elements alone will require a high level of continuing investment.

Active Passive Active

Source: HR&A Advisors

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Clarity of vision will permit development of a strategy capable of being revisited by successive administrations.

Mayor Garcetti’s successor may not be as river-passionate. Start of Community Organizing Current Status BAM Late 1990s Initial phases complete Ftn. Square Early 2000s Completed 2006 Beltline Late 1990s Initial phases complete BBP Late 1980s 50% built by end of 2014 High Line Late 1990s Final phase

• pen 2014

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HR&A’s Recommended Approach

A six-step implementation strategy

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Step 1: Define an easily articulable and powerful vision that is commonly shared among leading stakeholders. The vision What the project is How it will create value How it will be implemented (core values and priorities)

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Vision Programs

Community develop- ment Economic develop- ment Resilience and sustaina- bility Transpor- tation

Step 2: Describe complementary programs to achieve the vision. Consider the adequacy of planning to date.

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Step 3: Inventory current and near-term projects that advance each program.

Economic Development Program

Geo. Reach Funds Req.’d Funds Identified Responsible Party Supporting Agencies

• Est. Year

Complete

Current Projects Project 1 Project 2 Project 3 Near-Term Projects (5-10+ Years) Project 4 Project 5

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Step 4: Estimate order of magnitude total capital costs. Begin to identify sources of funding by project.

Philanthropy Required Funding For Current And Near-term Projects Base Public Funding Value Capture

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Base Public Funding: There is current potential for $500M in ACOE funding that would advance at least one potential program.

$- $100 $200 $300 $400 $500 Millions

Local Match for $500M Army Corps Funding

Gap in Local Match  $140M: State Water Bond (Prop 1)  $100M/$5-8B): State Cap and Trade  Proposed City Parks Bond U.S. Army Corps Local Match  Long Term Debt Financing Techniques  Assessment Districts  Special Taxes  Exactions & Fees  State and Federal Programs  Mayor’s Fund for Los Angeles

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Base Public Funding: Other sources must be explored, particularly at the State level, to advance other programs.

Community development Economic development Resilience and sustainability Transportation

Uses

TBD TBD TBD

Sources

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Value Capture: Precedents for linking infrastructure-attributable land value to funding from adjacent development are legion.

Presidio | Real estate portfolio provides half of operating revenues. Brooklyn Bridge Park | One B’klyn Bridge Pk provides $3m annually. Waterfront Toronto | Development proceeds provide revolving capital fund.

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Value Capture: Significant development opportunities along the LA River provide possibilities for value capture.

The Lincoln Heights Jail is one of many properties ripe for redevelopment and a source of potential value capture. Vacant Parcels

Source: ESRI, GIS

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Value Capture: Recently-approved Enhanced Infrastructure Financing Districts (EIFDs) have potential to raise capital dollars.

There is a motion in front of a LA City Committee to consider an EIFD for funding LA River improvements.

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Philanthropy: Parks have attracted philanthropy, but not for both capital and O&M. Total private funding rarely exceeds 50%.

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Public-Private Funding Partnership

Privat e

High Line Brooklyn Bridge Park Millennium Park Discovery Green Fountain Square O&M Private Public Capital Private Public

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Maintenance Districts

Step 5: Establish an O&M funding strategy with blended and complementary sources to support increasing O&M needs.

Public Funding Earned Income

Required Funding

Philanthropy Baseline public funding for O&M will be minimal. Maintenance districts have some potential to enhance public funding. Philanthropic potential is significant; consider tying capital gifts to ongoing

• perating

gifts. Income from programmed portions of the River has significant capacity.

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Step 6: Consider that effective governance acknowledges partners’ interests and core capabilities. Where does LARRC fit? Clarity of motivation Expertise, capacity, and interest in all relevant disciplines Ability to solicit, accept, and spend funds from multiple sources Accountability to the public

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Governance: Management requirements change over time.

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Governance: Success is not necessarily a function of centralization

• f authority.

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Golden Gate Natio Recreation Are Bay Area, California Williamsburg Waterfront, New York Emerald Necklace Boston, MA

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Governance: Nonprofit entities can be effective solicitors and poolers of public and private resources.

Shelby Farms Park Memphis, TN

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Governance: In the immediate term, critical, unfilled roles that could be filled by LARRC include:

Securing new capital funds Leading/facilitating the articulation of a vision Facilitating a coordinated outreach and media relations effort

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Next Steps

LISTEN

• Met with 20+ key stakeholders

DISCUSS

• Present HR&A’s assessment
• Share key lessons from national precedents
• Discuss board member impressions

SHARE

• Report HR&A findings to stakeholders
• Refine and share proposed implementation

plan

December 17, 2014

LA River Revitalization Effort Assessment

Implementation Opportunities