MUPDD 2003 Planning Capstone Studio Presents

1. MUPDD 2003 Planning Capstone Studio Presents A Mixed-Use Redevelopment of the Burke Lakefront Site Team Members: Pitt Curtiss Brian Drobnick Bryan Lloyd Mark O’Brien David Walker Melissa Williams Maxine Goodman Levin College of Urban Affairs

2. Lakefront Landing

3. Phases of Development • Prephase • I-90 reconfiguration • Airport terminal moves and new runways installed • Relocation of USS Mather, Hornblowers and U.S. Coastguard offices • Phase-out of flight schools • Assembly of Bluffs and Railroad right-of-ways • Phase One • On-site infrastructure construction • Public space created (greenspace, marinas and parks systems) • Waterfront Line extended • Construction of charter school • 75% of residential and commercial units developed • Phase Two • Introduction of luxury residential properties (i.e. waterfront condo’s and Bluff estates) • Residential and commercial build out completed

4. A Parable • Consider Albert Whitted Municipal Airport, St. Petersburg, FL • That city’s mayor proposes to “close one of two runways and sell off part of the land to private developers. He would add a new terminal and hangars next to the remaining runway, which would be extended.” • City Council granted a Tampa aviation consulting firm $80,000 to study this plan’s viability • Results due for release in October

5. Burke Lakefront Airport • Purpose of airport at Burke • Reliever-Burke needn’t compete with Hopkins International Airport • General aviation airport to reduce slow traffic at Hopkins • Training is not crucial • Provides location for major annual events • Proposed Conditions • Move runways NE • Terminal at E 40th St. • Phase out most flight training schools • Informal info suggests that other airports could absorb the volume of training flights • Encourage more business-type activity

6. Airport Site Events • Current events: Air Show and Grand Prix • Other possible community-building and revenue-generating events: • Ballooning festival • R/C aircraft races/demos • Fly-in pancake breakfast • Weekend carnivals • Etc.

7. Greenspace • 150 acres of parks, marinas and bike trails • Available for both passive and active recreation • Addresses public concerns about waterfront access • Increases quality of life for city residents • Creates a “destination”

8. Purpose of School Offer public school alternative Serve existing and new residents residents Regain confidence of families Science oriented curriculum Maintain explicit focus on college preparation Development Proposal Begin as K-6/8 and add successive grades as necessary Build near residential area College-Prep, Science-Magnet Charter School

9. Air Space Limitations

10. Critical Factor: Airport Noise • BBased on noise profiles from 4 other airports, it was determined that areas outside the 65 dBA curve would be suitable for residential uses

11. Proposed Land Uses

12. Is Mixed Use An Alternative?

14. Construction Phasing (25 Years)

15. Housing Vision • Signature development • Complement downtown rehab activity • Major public park with waterfront access • Urban “feel” and walkable character • Environmentally sensitive • Mixed income

16. Market Penetration/Buildout • Target: “suburbanites by default” • Survey: 10,600 potential “interested” households annually • Capture rate assumption: • 10% for “urban-type” suburbs (Lakewood, Cleveland Hts., Shaker Hts.) • 2.5% for “traditional” suburbs • Annual demand: 525 households • Buildout to 2,000 units in year 6 • Demand potential: 2,400 units by year 10 Buildout schedule assumes outmigration of 2% in year 2, 7% in year 3, 15% in year 4, and 20% in years 5 and after

17. Unit Mix Model: Built Value $000s, not inflation-adjusted RENTAL 1 BR market $650/mo 300 $ 23,400 2BR/1BA market $1,000/mo 300 36,000 2BR/2BA market $1,200/mo 200 28,800 3BR/2BA market $1,800/mo 50 10,800 1 BR affordable $450/mo 60 3,200 2BR/1BA affordable $600/mo 60 4,300 2BR/2BA affordable $650/mo 30 2,300 PURCHASE 2BR townhouse/condo $200,000 325 65,000 3BR townhouse/condo $250,000 325 81,300 Luxury townhouse/condo $300,000 180 54,000 Luxury “boathouse” $500,000 20 10,000 2BR affordable townhouse $80,000 75 6,000 3BR affordable townhouse $100,000 75 7,500 2,000$ 332,600 NominalMarket Value Price No.

18. Supportable Retail • 5-7 refreshment/fast food places • 4-5 miscellaneous repair services • 2 full-service restaurants • 1-2 beauty shops • 1 general merchandise store • 1 florist • 1 coin-op laundry ANNUAL BUYING POWER: $136M to $162M AND PERHAPS … • 1 convenience food store • 1 gas station • 1 drug store • 1 bar • 18-21,000 sf supermarket Approximately 60,000 – 70,000 SF

19. What Will Be Built … and What It Will Give to the City • Infrastructure • Public Marina • 1,780 apartments (350 low-income), with more than 100,000 sf of retail space. • 350 rowhouses (100 low-income) • 100 luxury townhouses, 50 with waterfront boatslips • 40,000 sf charter school • 150 acres of lakefront parkland • A buildable site • A destination attractive to boaters; direct access to the inner harbor waterfront at E. 9th • Housing, tax revenues, land lease fees, impact fees • Housing, tax revenues, land sale revenues (Bluffs), impact fees • Performance-evaluated school serving east side neighborhoods • A large and potentially unique urban park

20. How the TIF Operates •$22M applied to infrastructure -starting in Year 1.•Repayment & interest frozen until Year 11.•In Year 11 (when the majority of the buildout begins to happen), payment comes due -through Year 30.•Debt service is repaid directly through developed structures’ PILOTS (‘payments in lieu of taxes’; i.e., taxes), which are isolated from general city revenues for this purpose.

21. What the Spreadsheets Say • Assuming 5% vacancy (per housing survey results), apartments will rent for nearly $2,300 per unit; rowhouses will sell for between $340,000 and $380,000 per unit; and luxury townhouses will sell for $500,000. • Sale of city-owned land will total over $500,000. • $3,750,000 of impact fees --enough to construct the charter school-- will be generated. • Factoring in depreciation, PILOTS still will supply more than ample DSC for each year of repayment except the first. • Land lease fees will start tallying $1M by Year 6, reaching a plateau level of $17,500,000 by year 17. • Benefits to the city will amount to nearly five times the cost. • The reason for the high Cost-Benefit ratio is that the infrastructure is cheap compared to the buildout; the city will enjoy revenues, averaged out, greater than $11M per year for the life of the loan. This is the opportunity cost we pay for not developing the Burke site as proposed.

22. Conclusion • Requirements for successful development at Burke: • Reducing flight operations • Relocating runways • Controlling noise levels • Benefits obtainable: • 3,200 to 4,000 new downtown residents • $700,000 to $800,000 in new income tax revenue to City • $2 to $2.3 million in new property tax revenue to City • $3.5 to $4.2 million in new property tax revenue to the schools • $136-$162 million in buying power • 150 additional acres of public greeenspace

23. Lakefront Landing will be a new neighborhood with incorporated park space, high tech educational campus, office/retail and “New Urbanist” themes