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The Economy of Waterfronts : Not Your Average Real Estate

The Economy of Waterfronts : Not Your Average Real Estate. Frank Mahady, Principal FXM Associates. Economic Development v. Real Estate Development They Are Not The Same.

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The Economy of Waterfronts : Not Your Average Real Estate

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  1. The Economy of Waterfronts:Not Your Average Real Estate Frank Mahady, Principal FXM Associates

  2. Economic Development v. Real Estate DevelopmentThey Are Not The Same • Economic Development – maximizing effects of public and/or private actions onhousehold income, jobs, business sales and taxes within the overallcommunity/region/state • Real Estate Development – achieving the “highest and best” use of a parcel or parcels, as measured byreturn to investors/owners and property taxes to a municipality But They Are Related FXM

  3. Waterfronts ARE… • A quality-of-life variable affecting household and business investment decisions community-wide [Chicago Lakefront] • Places that people now like to live, work, and shop because of the views and other amenities [Newport] • The ONLY place where water-dependent uses can locate [Galilee, Providence, Quonset/Davisville] • A SIGNIFICANT economic zone involving water and landside economic activities [New Bedford/Fairhaven Harbor, Port of New York/New Jersey] FXM

  4. Waterfronts ARE… • NOT easily revertible to use by water-dependent activities once converted to residential and other commercial uses“Once you’ve been a pickle, you can never be a cucumber again” • NOT the only place in a locality where market-driven residential and commercial real estate development might be feasible • NOT an equivalent resource in each community and location FXM

  5. Economic Impacts of Water-dependent Uses: A Few Examples • MacMillan Pier, Provincetown – whale watch vessels draw 300K visitors =35% of downtown retail sales, 60% of shoulder season hotel occupancies • Onset Pier, Wareham – One65-foot excursion vessel draws 30-40,000 visitors; effect on local jobs & business sales ≥ 120-room hotel+ leaves pier for parking, festivals and other uses • State Pier, New Bedford – The expenditures for stevedoring, provisions, etc. by 2-3 cargo vessel loadings/offloading ≥ the impact on local jobs & business sales of visitor spending from 30+ cruise ship callings+ MV passenger ferry FXM

  6. Economic Impacts of Water-dependent Uses: A Few Examples • Crisfield, MD – freight ferry effects on local jobs & business sales ≥passenger ferry & condos + help sustain fishery – ENDANGERED • New Bedford/Fairhaven Harbor –dredging allowed expansion of business sales, jobs, & income + generated significant new State and Federal taxes THRIVING • Allens Avenue, Providence –industrial usesset a very high bar in terms of the business sales, jobs, household income, and statewide fiscal benefits they generate NUMBERS SOON! FXM

  7. Boston by BoatMay, 2008, Water Transportation SummitSave the Harbor/Save The Bay FXM

  8. Economic Development + Real Estate DevelopmentChelsea Creek FXM

  9. Chelsea CreekEconomic Development + Real Estate Development FXM

  10. The Best Urban Waterfronts … FXM

  11. Making it Happen • Think jobs, income, business output FIRST • assess payoff for retention and expansion of water-dependent uses • typically a very high bar for other uses to measure up • State & Federal governments get large payback on investments to support water-dependent industrial uses • Industrial uses do not preclude ferries and excursion vessels • Water views are not diminished by working waterfronts • Cities need jobs, thriving businesses, & fiscal revenues – help them get what they need FXM

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