kirkland downtown 101pdfs/... · real estate, 2007: coastal metro areas apartments, office—...
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Lessons for a HealthyDowntown Kirkland
Kirkland Downtown Advisory CommitteeJuly 26, 2007
LELAND CONSULTING GROUP
Kirkland DACLELAND CONSULTING GROUP
LCG Downtown ExperienceAlbuquerque, New Mexico Albuquerque, New Mexico Astoria, OregonAstoria, Oregon
Auburn, WashingtonAuburn, Washington Aurora, ColoradoAurora, Colorado Beaverton, OregonBeaverton, OregonBellingham, Washington Bellingham, Washington Bend, OregonBend, Oregon Billings, MontanaBillings, Montana Boise, IdahoBoise, Idaho
Charlotte, North CarolinaCharlotte, North Carolina Colorado Springs, ColoradoColorado Springs, ColoradoCorpus Christi, Texas Corpus Christi, Texas Dearborn, MichiganDearborn, Michigan Denver, ColoradoDenver, Colorado
Des Moines, IowaDes Moines, Iowa Englewood, ColoradoEnglewood, Colorado Eugene, OregonEugene, OregonFlorence, OregonFlorence, Oregon Fort Worth, TexasFort Worth, Texas Hillsboro, OregonHillsboro, Oregon
Kirkland, WashingtonKirkland, Washington Klamath Falls, OregonKlamath Falls, OregonLake Oswego, OregonLake Oswego, Oregon Lexington, KentuckyLexington, Kentucky Lewiston, IdahoLewiston, Idaho
Lincoln, NebraskaLincoln, Nebraska Lincoln City, Oregon Lincoln City, Oregon Madras, OregonMadras, Oregon Medford, OregonMedford, OregonMidland, TexasMidland, Texas Milwaukie, OregonMilwaukie, Oregon Missoula, MontanaMissoula, Montana
Montrose, Colorado Montrose, Colorado North Richland Hills, TexasNorth Richland Hills, Texas Oregon City, Oregon Oregon City, Oregon OtayOtay Mesa, California Mesa, California Palm Springs, CaliforniaPalm Springs, California Portland, OregonPortland, Oregon
Pueblo, ColoradoPueblo, Colorado Racine, Wisconsin Racine, Wisconsin Salem, OregonSalem, Oregon San Diego, CaliforniaSan Diego, CaliforniaSanta Fe, New MexicoSanta Fe, New Mexico Santa Paula, CaliforniaSanta Paula, California Seattle, WashingtonSeattle, Washington
ShiprockShiprock, New Mexico, New Mexico Shoreline, Washington Shoreline, Washington Snowmass Village, ColoradoSnowmass Village, ColoradoSpokane, WashingtonSpokane, Washington Steamboat Springs, ColoradoSteamboat Springs, Colorado
Stockton, CaliforniaStockton, California Tacoma, Washington Tacoma, Washington Tualatin, OregonTualatin, OregonUniversity Place, Washington University Place, Washington Vail, Colorado Vail, Colorado West Jordan, UtahWest Jordan, Utah
Kirkland DACLELAND CONSULTING GROUP
Focus of the PresentationWhy Plan Downtown?Downtown TrendsIngredients for successTools and Tactics
Kirkland DACLELAND CONSULTING GROUP
Why Plan for Downtown?
Cities are defined by the Public RealmCirculation, Open Space, and Public Buildings help define private opportunityDowntowns are the most complex part of a city
Downtown Trends
RetailResidential
EmploymentDemographics
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Retail TrendsLuxury goods are small share of total retail sales70% of retail sales in America are made after 5:30 and on weekendsEarly closing stores in downtowns strugglePlace Making: In downtown and at suburban lifestyle centersRetail is constantly changing
Kirkland DACLELAND CONSULTING GROUP
Residential TrendsUrban housing resurgenceHousehold sizes are shrinkingMore people work from homeUrban housing needs:
Inviting environmentVariety of productSupporting services
Kirkland DACLELAND CONSULTING GROUP
Residential TrendsEmerging Trends in Real Estate, 2007:
Coastal Metro AreasApartments, office—strong Infill, urban locations, and transit stations
Urban and suburban apartments are hottest of all development types
- Integra Realty Resources, 2007
Kirkland DACLELAND CONSULTING GROUP
Household Composition
Household Type Portland Seattle Boise Spokane Kirkland
One-person 34.6% 40.8% 30.0% 33.9%
32.0%
65.9%
34.1%
100%
35.6%
Two-person 33.3% 33.8% 34.4% 36.4%
Subtotal 67.9% 74.6% 64.4% 72.0%
Three or more 32.5% 25.4% 35.6% 28.0%
Total 100% 100% 100% 100%Source: U.S. Census Bureau and Leland Consulting Group
Select Western Cities (2000)
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Just over 20 percent of America is now “Dad, mom, and two kids”
Non-traditional households are the majority
Marrying later and deferring childbirth—define themselves through live-work-shop
Rich ethnic mixKey urban housing markets:
Generation X – up and coming, seek urban excitementBaby Boomers – free, affluent, and downsizing
The ‘Typical’ Household
Kirkland DACLELAND CONSULTING GROUP
Office and Employment TrendsTechnology and Services Small firmsBright young workersSeek urban places18-hour activityMixed-use environmentsSocial interaction
Kirkland DACLELAND CONSULTING GROUP
Downtown Land Use Rules of Thumb
HousingLower parking ratiosSupports more retail $$Activates weekends/ evenings
OfficeHigher parking ratiosOnly 9-5, M-FMore cyclical
ButBut……
•• Rules are made to be brokenRules are made to be broken
•• Too much of a good thing isToo much of a good thing is……
•• Kirkland may be an exceptionKirkland may be an exception
What Makes a Successful
Downtown?
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Place Making“The process of identifying and revitalizing
underutilized public and private spaces that result in the fundamental transformation of community.”
Through superior public realm design, overcome hesitation and resistance to private sector investment.
Kirkland DACLELAND CONSULTING GROUP
Attributes of a Healthy Downtown -Physical
Compact urban formPedestrian amenitiesSecure environmentAttractive housingClass A office spaceHotels Civic and cultural usesEntertainment Historical connection
Parking and transit access
Kirkland DACLELAND CONSULTING GROUP
Attributes of a Healthy Downtown –Financial
High retail salesDiversified tax baseHigh occupancyRelatively high commercial rentsRange of funding tools
LID/BIDParkingSales TaxesHotel/Motel TaxesProperty Taxes
Kirkland DACLELAND CONSULTING GROUP
Attributes of a Healthy Downtown –Organizational
An effective downtown organization
Marketing Management AdvocacyEventsEducation
Arts & cultureCity agencies
Public and private leadership
Many plans don’t get built—
Why?
Universal ProblemsBarriers
Challenges
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Universal Downtown Problems1. Attracting new development2. Attracting people downtown evenings / weekends3. Competition from
discount stores and/or suburban malls
4. Vacant/underused retail space
5. Parking6. Shortage of suitable
housing
in priority order
Source: International Downtown Development Association with LCG
Kirkland DACLELAND CONSULTING GROUP
Universal Downtown Problemsin priority order
7. Image8. Vacant/underused
office space9. Preservation of older
buildings10. Unattractive building
façades11. Crime (real or perceived)12. Traffic circulation/congestion
Source: International Downtown Development Association with LCG
Kirkland DACLELAND CONSULTING GROUP
Barriers get in the WayMarketPhysicalFinancialRegulatoryPolitical
Kirkland DACLELAND CONSULTING GROUP
Market BarriersEconomySeasonalityLack of precedent for project componentsAppraisal challengesOvercoming fears of pioneering
Weak visual exposureLack of critical mass
Kirkland DACLELAND CONSULTING GROUP
Physical BarriersLack of pedestrian friendly amenitiesLack of public realm elementsIncompatible land usesShape / size of areaLack of parkingWaterfront orientation
Kirkland DACLELAND CONSULTING GROUP
Financial BarriersInadequate public funds for planning, property acquisition, programs, and start upHigh development costsInfrastructure costsPerceived risks investmentLow rents
Kirkland DACLELAND CONSULTING GROUP
Regulatory BarriersInappropriate codes and zoningRestrictive heights, uses, stacking, etc.Inflexible code administrators—regulatory overkill Overly prescriptive design standardsOnerous permitting process –time is money!Discretionary process vs. developer certainty
Kirkland DACLELAND CONSULTING GROUP
Political BarriersLack of revitalization experienceLack of true championsMissing implementation strategyNot enough communication
Political resistanceIncomplete internal consensusMissing public-public partnerships Private sector and media support is underdeveloped
Kirkland DACLELAND CONSULTING GROUP
Downtown Development Challenges
More complicatedHigher land costsRegulation & reviewStrong public opinionHigher parking costsConstruction stagingNeed to overcome these barriers through joint development
Tools and Tacticsto Sustain Success
‘Getting Ready’Implementation Principles
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Don’t Let Planning be an Incomplete Thought
Do not plan for downtown aloneUnderstand the larger community contextDowntowns must integrate with other goals:
HousingJobsTransportationParksArts
Kirkland DACLELAND CONSULTING GROUP
How to do it? Getting to Implementation1. Have a Great Strategy2. Many, Many Projects3. Committed, ongoing Leadership4. Supportive Government5. Public-Private Partnerships6. Ongoing Review
Kirkland DACLELAND CONSULTING GROUP
Have a Great Strategy
Combine market potential with community visionGo far beyond patching problems or reacting to specific issuesInspire greatnessAuthenticity
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Many, Many ProjectsA great plan moves many projects forwardProjects are broadly defined:
Public and private BuildingsInfrastructureMarketing EventsOpen spaces
Think small
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Committed, Ongoing Leadership
Leaders desire success for the entire communityAble to motivate and organize stakeholdersGreat leadership = great projectsNo leadership = failed projects
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Supportive GovernmentProvide support for achieving standards –consultation, code enforcement, and assistanceAble to review its practices and identify and change policiesSet clear goalsChampion implementation
Kirkland DACLELAND CONSULTING GROUP
Provide IncentivesTax abatementSDC policy refinementTax creditsLocal Improvement DistrictsRezoningLending poolsMarketing assistanceExpedited permitting
EducationPut out the welcome mat
Public-Private Partnerships
The most important tool in the shed
Kirkland DACLELAND CONSULTING GROUP
Private Investment Follows Public Commitment
Prepare infrastructure and amenities in advanceDevelopers want long-term certaintySet the bar for quality
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Nurture Public-Private Partnerships
Most implementation is done by private sectorTypes of partnerships:
Development agreementsDevelopment RFQ/RFPDirect & indirect subsidy
Seek leverageProvide public amenities
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Nurture Public-Public Partnerships
Build public partnerships for implementationLocal, Regional, State, and Federal
Kirkland should not do it alone
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Lessons Learned Community
Goals
Successful Project
Public Private Partnership
Developer Experience
Financial Capability
Design Excellence
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Ongoing ReviewPlans are living documentsChange is constant
MarketsEconomyResidentsLandscapeVision
A downtown is never “finished”
Kirkland DACLELAND CONSULTING GROUP
Bottom Line
Downtowns are complexTrends are positiveSuccessful downtowns have
Leadership and champions Public-private partnerships Good communicationMany projects at once
The process is never done…
Kirkland DACLELAND CONSULTING GROUP
LELAND CONSULTING GROUPUrban Strategists
www.lelandconsulting.com
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