Public Meeting AUGUST 14, 2014 Mahan Rykiel Associates Arnett Muldrow Associates RGS Associates

Economic Development Strategic Plan for the City of Lancaster, Pennsylvania

Building on Strength: NEGOTIATING FROM A POSITION OF ADVANTAGE

#BuildingOnStrength

AGENDA

1. Introduction

2. Study Area + Scope

3. Document Review

4. What we are Hearing

5. Market Analysis

6. Emerging Themes

7. Facilitated Discussion

INTRODUCTION #BuildingOnStrength

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PURPOSE OF THE PLAN

The purpose of the Lancaster City Economic Development Strategic Plan is to both continue and expand the revitalization of the City through the creation of a “Community-owned” action plan. Succeeding the Lancaster’s Economic Development Action Agenda (LDR Plan) of 1998, which reacted to the need to stimulate economic development, this strategy will build upon the strengths and opportunities gained from years of strong economic growth of our City. Through assessing current trends, opportunities and community needs specifically centered on our commercial areas/corridors, the end result will be a broad, vibrant Economic Development Strategy with detailed goals and tactics that will serve to lead the City of Lancaster throughout the next decade.

SCOPE + STUDY AREA #BuildingOnStrength

SCOPE

» Evaluate downtown and key commercial corridors that serve as gateways and neighborhood centers

» Identify opportunities to strengthen, expand, + diversify the City‘s economic base

» Provide an implementable framework for guiding economic growth and development for commercial areas

Study Areas » Downtown Core

» Queen/Prince Corridors

» NW Gateway/Harrisburg Avenue

» Train Station Area

» South Duke Street

» King Street

» New Holland Avenue/East Walnut Street

» Manor Street

DOCUMENT REVIEW #BuildingOnStrength

Document Review - Snapshot » Lancaster City Alliance’s Strategic Plan

» Economic Development Action Agenda, LDR Plan

» Lancaster Strategic Plan

» The ROI of the PA Dutch CVB Promotional Activities – Tourism Economics

» Lancaster Housing Market Analysis

» Beyond the Code Success Stories in Upper Level Development

» Lancaster Downtown Investment District Authority DID (Draft)

» High Associate’s Commercial and Industrial Market Overview

» The Economic Benefits of Green Infrastructure

» Gateways Revitalization Strategy

» Urban Park, Recreation and Open Space Plan for the City of Lancaster

» Lancaster Train Station Area Master Plan

» Lancaster Redevelopment Opportunities: A Study of underutilized properties, and strategies for revitalization

» Franklin & Marshal College Campus Master Plan

» Growing Together: A comprehensive Plan for Central Lancaster County, PA

» Lancaster Crime Commission Reports

» Lancaster Prospers

» City Revitalization & Improvement Zone (CRIZ) Incentive

» Economic Development Company of Lancaster’s Strategic Plan, Communications and Marketing Strategy

» Green Infrastructure Plan

» Many others …

WHAT WE ARE HEARING #BuildingOnStrength

What we are Hearing: Overview

Primary Input – Reoccurring Themes

» Connections

» Transportation

» Economic Development – Traditional and Creative

» Financial Challenges and Opportunities

» Poverty / Housing / Skills Development

» Image / Leveraging the Brand / Changing Perceptions

What we are Hearing: Assets What does Lancaster have to offer? What does it do well in comparison to other communities? Competitive advantages for businesses? » Common sentiment of first time visitor: “I had no idea” » Incentive districts (CRIZ, KOZ, KIZ, TIF, LERTA, etc.) » Presence of Educational institutions » Rich history; heritage » Programming/Events bringing people downtown » Arts initiatives; strong, expanding beyond Gallery Row » Strong tourism in County » Diversity – population and neighborhoods » Headquarters/anchor institutions » Coordinating organizations (e.g. LCA, SACA, Assets) » Spirit of collaboration » Intact architectural resources » Locally-owned businesses

– Entrepreneurial spirit – Strong work ethic – Niche cultures (beer culture)

» Co-Working space » Authenticity; organic growth » Faith community support workers "wheels to work" program » Positive development experience with City* » Long-term commitment – many investors/developers » The “maker” culture

» Regional transportation connections - Amtrak » Strong branding in core, building an identity ("A City

Authentic"); use of social media, online presence; Establishing an image

» FIG is a “game changer” » Progressive government; implementation success » Fringe culture/creative class » Informal networks; connectivity; collaboration » Concern for environment; green infrastructure » Workforce from large region » Unique and beneficial resources are available

– Assets – SCORE – Duke Street Business Center – Lancaster City Alliance – Bike ambassadors – Etc.

» Regional location; proximity to major cities/airports » Rising workforce and college populations » Growing interest in Biking » Walkable core

What we are Hearing: Challenges What are the challenges that can limit economic development and investment success? » Pennsylvania’s Commonwealth system –

disinvestment in urban cores - sprawl » Availability of funding » Concentration of services in City » Multiple initiatives – need to connect the pieces » Population trends – poverty/homelessness » Limited diversity in retail uses » Limited hotel rooms » Limited family entertainment » Not meeting basic needs of residents in some

corridors » Negative development experience with City * » Codes – Interpretation / inconsistent enforcement » ADA Compliance » Aging infrastructure

» High construction costs relative to realistic rental potential/value

» Limited new/affordable housing » One-way streets / corridors -high-speed » Truck traffic (no n/s bypass) » Worker skills gap » Underutilized building/housing stock; vacant upper

levels » Pedestrian un-friendliness in some areas » Perceptions: safety, parking, schools, funding

recipients, challenges of building codes associated with historic architecture, parking

» Poor sense of arrival / no grand gateways into city » Limited connections to train station

What we are Hearing: Opportunities What opportunities exist for enhancing or supporting existing strengths and addressing challenges?

» Celebrating the diversity of Lancaster’s population

» Build upon existing entrepreneurial spirit

» Clearing house for information

» Existing housing demand

» Increased density/height in core downtown

» Create “place” along corridors

» Continue to cultivate a stronger image/brand; tell the story; change perceptions; consolidated marketing programs; celebrate cultural diversity

» Non-profits-lease from for-profits to generate tax revenue

» Creative financing; Connect money to opportunity

» Business-friendly city; permitting process, incentives, funding, etc. –facilitate development/rehabilitation

» Economic Review Board, or similar panel at city to evaluate economic impact of codes and legislation

» Business incubation; focus on small businesses; connect thinkers with doers—mentorship

» Lititz hotel demand

» Build upon the assets – the region’s cultural center

» Larger undeveloped /underutilized properties

» Smaller infill sites

» Upper floor development

» Surface parking lots as development sites

» Maximize benefits of CRIZ Incentive districts

» Continued Historic revitalization

» Embracing and increasing tourism; visitor-friendly city

» Capturing conference visitor for future visits

» Filling business/retail/service gaps

» Attracting tech companies

» Continued strategic programming (e.g. art walks, taste of the town, nights out, etc.); simultaneous events

» Storytelling, carry knowledge through generations

» Expanding upon spirit of collaboration among all organizations/public/private

» Workforce development - skills/training programs

What we are Hearing: Threats

» Competition with surrounding municipalities » Continued concentration of services in City » Taxable vs. non-taxable properties preventing resources

from reaching communities – already "taxed to death" » No changes to building codes / methods of

enforcement » Shortage of building/sites for large projects (i.e. to

support incoming businesses with 400+ employees [tech industries])

» Not preserving key sites for the best long-term potential

» Conventional development around train station » Lack of collaboration with Manheim Township » Continued disinvestment, architectural stock

deterioration » Increasing racial/cultural segregation » Gentrification » Uncoordinated strategies

» Lack of housing choices to attract business/employees

» Poor or lack of marketing in general

» Continued negative perceptions

» Roadways/corridors continuing as barriers

» Concentrated investment in one area

» Competition between downtown core and corridors

What political, economic or technological trends could harm the community and/or threaten the key strengths and opportunities identified?

What we are Hearing: Overview

Representative Stakeholder Input » “Supporting and sustaining existing businesses is as important as

attracting big new shiny stuff.”

» “There has been a lot of investment in core; this made sense. We now need to make the next jump beyond the core.”

» “The corridors need to function as economic units.”

» “Don’t forget that downtown belongs to everybody.”

» “People can go downtown and figure it out once they get there” (because there are so many choices)

» “The conversation was so different 15 years ago…we were terrified then.”

» “The task at hand: put together a blueprint for the future – give confidence to investors.”

WHAT WE ARE HEARING - CORRIDORS

#BuildingOnStrength

GENERAL » Need to make great

gateways into community – currently not apparent

» Corridors need to function as hubs for their associated neighborhoods

DOWNTOWN CORE » Build on successes » Connect the strong pieces » Fill in the gaps » Diversify offerings » Increase density/height

NW/TRAIN STATION AREA » Need enhanced connectivity » Tremendous opportunity for

coordinated/meaningful and significant development –

» Opportunity for housing » Amtrak as key anchor – transit-

oriented development » Incorporate open space/trail

networks » Streetcar/Circulator » Improved walkability and foot

traffic » Coordinated/shared parking will be

critcial » Several significant nodes/”places” » Importance of Mannheim TWP as a

player in coordinated development » Opportunity for incubator space » Lots of gaps to fill in….North Queen » Queen as connector for

pedestrians from Train Station

SOUTH PRINCE/QUEEN » Lancaster Business Park-under-

realized asset – nobody knows name – limited presence on Prince

» Need pronounced commercial hub » Southern Market – opportunity to link » Park and green space - significant

amount » Conestoga River - asset » Woodward Hill Cemetery - asset » High speed through traffic on Prince –

a barrier » Assets Lancaster - mapping businesses

in corridor » More affordable rents – opportunity to

bring more arts (Potters Guild) » Mission –asset but people gathering in

front » Park- drugs/prostitution » Disconnect along Water Street » Need for safe pedestrian connections

SOUTH DUKE » Conestoga Plaza – tremendous

positive – opportunity to create more of a commercial hub

» Lack of consistency with inspections

» Relationships with businesses important – government, police, parents, community

» Boys and Girls Club involvement » Lack of parent involvement » Challenge: getting residents to

support businesses in the corridor » Need to brand the corridor –

culture/history/ethnicity » SACA Facility - Name? » SACA infill housing

EAST KING » Becoming a place where people can

start both a business and a family » Existing forward momentum and

interest in area » Could be extension of downtown » Lacks pedestrian foot traffic, activity.

– Need food/restaurant business » Marketing needed to promote recent

trends and improvements – Real Estate Agents needed to promote

area » King acts as a seam, a dividing line

between north and south – Embedded social challenges – Need to better connect neighborhoods

on either side » Some challenging properties » Difficult pedestrian/bike access to

other parts of city (e.g. Train Station)

MANOR/WEST KING » Manor is major conveyance, pedestrian

and vehicular » Water Street previously edge of

Downtown » Theatre/arts start to extend along West King » Strong arrival experience to downtown » Diverse, multicultural » History, umbrella factory; German workers,

craftsmen traditions – Still home to workforce of the city

» Some stagnant areas; revitalization needed

– Challenges to redevelopment: ownership; historic district; rents too low

» Must keep area affordable for long-term renters

» Parking/transit: need to get out of car mindset

» Bus lines have limited destinations, don’t meet everyone’s needs

» Residential properties lack amenities » Commercial no longer meets resident

needs » Anchor institutions not engaged in

conversation » Wayfinding needed, visitors get lost in

corridor

NEW HOLLAND AVENUE » Attractive gateway into downtown

from County, ease of entry/exit » Lacks connection to Downtown » Ample parking » Recent influx of office users;

predominantly female, have different needs

» Strong commercial node - Urban Place, Burle Business Park, shopping center

» Proposed Aquatic Center, recent plans have been quiet

» Additional significant investment opportunities; adaptive reuse

» Concerns of crime; recent incidents: violent crime and vandalism

– Youth engaged in crime activities; opportunity to work with school district

» Better street and sidewalk conditions would promote walkability and increase safety

– Businesses currently discourage walking » Recent stormwater management

projects; successful but not far enough reaching

– Flooding issues on many properties » Gaps in service/retail offerings

MARKET ANALYSIS #BuildingOnStrength

Market Definition: Trade Area Map

The Retail Market: Overview

PTA » Retail sales in the City $296.9 million. » Retail expenditures $739.6 million. » Retail opportunity gap $442.7 million. STA » Retail sales $2.96 billion. » Retail expenditures $2.39 billion. » Retail opportunity inflow $579.2 million. Net Gain $136.5 million in sales.

Office Market: Thoughts

» Lack of class A space.

» Rental rates are are below viability to make City Competitive with suburban market.

» Vacancy Rates in the City are comparable to outside the City.

» Macro trends work in the City’s favor.

Hotel Market: Thoughts

» Relatively high ADR’s in the City point to an opportunity for continued growth.

» Major trend with new brands going into urban locations.

Housing Market: Thoughts

» The macro trends work in favor of Lancaster City.

» However the immediate trends are challenging: affordability.

» Key need for aggressive marketing strategy.

» Successful housing market = economic development.

EMERGING THEMES #BuildingOnStrength

Emerging Themes » Building on Successes: Opportunity Sites for Investment

1. Major Investment/Development Opportunities

2. Infill Investment/Development Opportunities 3. Connecting the Pieces

» From Tradition to Innovation: Classic Economic Development and the Growing Entrepreneurial Economy 4. Bringing the Regional Economic Opportunities to the City 5. Building on the growing entrepreneurial, creative class

» Community Development as Economic Development 6. Housing Strategies 7. Connecting residents to economic opportunity

» Leveraging the Lancaster Brand 8. Telling the Story of A City Authentic

FACILITATED DISCUSSIONS #BuildingOnStrength

What has been the most important transformation in Lancaster between 1998 and now? » Increased favorable impression of

police, schools, and services; earned, not just perception

» Enlightened government » Buy fresh, buy local campaign;

increased quality of food, restaurants, markets; increased business; improved nutrition awareness; etc.

» Reduction of dark buildings » Creation of the Downtown

Investment District (DID); start of city revitalization – Bike Ambassadors – Crime reduction – Special events, promote city; draw

people into the city » Focus on the arts, culture, heritage » Small businesses, boutiques;

restaurants, gallery row; things to do

» Capital investment for ballpark; likewise, convention center; train station

» Getting people on the street, activity

» Communication between government, merchants, residents, et al.

» Value of people moving back into the city

What has been the most important transformation in Lancaster between 1998 and now?

» Park City, free parking – what can be done in the city to make parking easier, more affordable

» Focusing on preservation, rather than changing the

city; authenticity

What would be a “big win” for economic development in Lancaster? » Whole Foods » Transit and accessibility

– Streetcar connecting train station to the convention center

– Improving RRTA bus service – Transit Oriented Development

(TOD) around the train station – Light Rail line connecting to

airport, surrounding area » Municipal broadband wi-fi

network » 2nd and 3rd floor » Bulova building » Addressing poverty; livable

wages » No one solution, combination

of efforts from various individuals/groups – Access to capital – Facilitate entrepreneurial base

» Coordination with the local school district (potential to help address poverty)

What would be a “big win” for economic development in Lancaster? » Consider input from various

stakeholders; identify who is providing input in this project

» Affordable housing for local artists – Unite artists from other

countries, have representation of them downtown

– Bring artists into each corridor » Not enough bus routes; not

frequent enough – Recent success leveraged, go

to state for transportation funding

» Capture technology industry,

work with university departments; potential tech hub, incubator

» Space across from Bins Park (Lancaster Square); was previously a fully utilized space; need once again – Movie theater – Satellite campus for local

universities

What would be a “big win” for economic development in Lancaster? » Basic services/needs for

residents; gaps in retail (underwear, socks, everyday needs)

» Local currency (Lancaster Dollar Program)

» Transformation from city that people visit (work, shop, First Fridays, etc.), to one where people live – Need to first provide basic

goods, services within city » More connected to local

farmers, bring local food into city; self-sustaining, live off the

land, in a way » New market rate residential

units (500-1000) » This effort is serving one

segment of the population; bring others to the table, inclusive process – Streetcar/trolley system should

go into all corridors

In the absence of a “big win” what is the most significant trend you see that works to provide the City of Lancaster’s economic development advantage? » Lancaster as a multicultural,

diverse city – City with energy and buzz – Keystone Art Center – Institutions are islands in some

areas; need nurturing – Places for locals to go and have

fun – Tell Lancaster’s story

» Historical tourism – Thaddeus Stevens – Market to outsiders as well

» People come together in neighborhood groups, take leadership, play role in community

» Young people downtown

» Older generations come back into the city – Look at vacant, underutilized land

within the city; opportunity for (re)development

» Young professionals » Families, build school district

strength; overcome negative perception

» Develop skills to match skills gaps in the city; workforce development programs

In the absence of a “big win” what is the most significant trend you see that works to provide the City of Lancaster’s economic development advantage? » Continue to embrace tourism

– Businesses struggle during vacation months; dependent on local business

» What can Lancaster sell? Growing retail strategically

» Systems to facilitate environmental responsibility in households – Municipal composting and

other techniques » Bicycling, provide facilities,

educational materials, bike racks, etc.

» No chain stores, downtown

– Local businesses » A lot of little wins, individual

moves; set table for economic development – Transportation; trolley rails

demonstrates commitment to transportation

– Big projects have been great, but need continued development through small wins

In the absence of a “big win” what is the most significant trend you see that works to provide the City of Lancaster’s economic development advantage? » Housing in

downtown Lancaster; more quantity at every price level

» Increasing programs for young entrepreneurs – Capital, investment

– Resources – Increasing immigrant

populations, need support to begin new businesses

• Opportunity to occupy vacant/underutilized spaces

Other thoughts based on what you heard today?

» Affordable hotel space downtown; already on edges, in suburb

» Auto traffic in residential communities – 1970s Traffic Plan; purpose to increase

speeds in/through city; 1-way creation » Bike shares; link to internal, existing

transportation; connect to universities, communities

» Strong tax revenue base; helps government to improve, enhance city

» Investing long-term, into future of City » Wages stagnant since 1980s » Tax loopholes » Conflicting desires: facilitate auto

traffic and increasing bike/ped traffic; potential close off streets (Salem, MA)

» Value of the religious institutions as catalysts for culture

» When address W. King (a corridor in this plan)

– Extend west to city limit » Include gathering places, third places,

unique to corridor identities » 82% of children in Lancaster schools

receive free or reduced price meals » Limit, stop publishing negative,

unconstructive letters; focus on positive promotion of city

» No new development in inner city, parking is a challenge (residents have trouble getting into downtown)

– Bring development to neighborhood areas, don’t limit development to downtown

– South Side, and other neighborhoods

#BuildingOnStrength