I) Land Indianapolis, IN Advisory Services Program February 10?15, 2019 Irvington Plaza, Indianapolis, IN February 10-15, 2019 About the Urban Land Institute ▪ The mission of the Urban Land Institute is to provide leadership in the responsible use of land and in creating and sustaining thriving communities worldwide. ▪ ULI is a membership organization with more than 42,000 members worldwide representing the spectrum of real estate development, land use planning and financial disciplines, working in private enterprise and public service. ▪ What the Urban Land Institute does: • Conducts research • Provides a forum for sharing of best practices • Writes, edits and publishes books and magazines • Organizes and conducts meetings • Directs outreach programs • Conducts Advisory Services Panels 2 Thank You to Our Sponsor068 INDIANAPOLIS METROPOLITAN DEVELOPMENT Advisory Serv Irvington Plaza, Indianapolis, IN February 10-15, 2019 Thank You to Everyone Else…! Dan Adams – Margaret Banning – Katie Bannon – Courtney Bennett – Jeff Bennett – Joe Bowling – Dawn Briggs – Linda Broadfoot – Moira Carlstedt – Cathie Carrigan – Zach Churney – Kate Collins – Susie Cordi – Don Currie – Andrea Denman – Catherine Esselman – Taylor Firestine – Don Flick – Ryan Ford – Jennie Fults – Clark Giles – Tedd Grain – Hannah Harper – Joe Hanson – Jeff Hasser – Daniel Hedglin – Jacqie Heikes – Bob Heimach – Jennifer Higginbotham – Keith Holdsworth – Tammi Hughes – Ryan Hunt – Jaminson Hutchins – Blake Johnson – Mike Jones – Walt Justus – Sue Kennedy – Deb Kent – Drew Klacik – Dan Kozlowski – Nate Lelle – John Marron – Tim Mulherin – Beth Neville – Sean Northup – Elizabeth Nowak – Matt Nowlin – Melody Park – Maury Plambeck – Matt Pleasant – Meg Pumsley – Jim Rawlinson – Alison Redenz – Katie Robinson – Jordan Rodriguez – Gabrille Rubenstein – Nancy Ruschman – Aryn Schounce – Nathan Sheets – Elysia Smith – Bob Stark – Justin St. John – Anne-Marie Taylor – Brooke Thomas – Brad Vogelsmeier – Kate Warpool – Joe Whitsett - …And many more. 4 The Advisory Services Program Irvington Plaza, Indianapolis, IN February 10-15, 2019 ▪ Since 1947 ▪ 15 - 20 panels a year on a variety of land use subjects ▪ Provides independent, objective, and candid advice on important land use and real estate issues 5 Irvington Plaza, Indianapolis, IN February 10-15, 2019 The Panel Process • Review background materials • Receive a sponsor presentation and tour • Conduct stakeholder interviews • Consider data, frame issues and write recommendations • Make presentation • Produce a final report 6 Irvington Plaza, Indianapolis, IN February 10-15, 2019 Panelists Alan Razak- AthenianRazak, Philadelphia, PA (Chair) Jay Amin- VIA Consulting Group/I-S-LAND Companies, Crofton, MD Dan Anderton- Dewberry, Gaithersburg, MD Erwin Andres- Gorove/Slade, Washington, DC Rick Goldman- Pacific Construction Services, Chicago, IL Anita Kramer- The Urban Land Institute, Washington, DC Theresa Ward- Department of Economic Development and Planning, Suffolk County, NY ULI Staff Lauren Callaghan- Director- Advisory Services Rebecca Hill- Associate- Meetings and Events Jacob Dines- Intern- Ball State University 7 Study Area and Project Sites STUDYAREA ., 52068 Historic Irvington Priority Project Site Secondary Project Site I - - r- Study Area Urbanland (.J . "2.5 . '75 ?we Institute Advisory Services Program Sponsor Questions Irvington Plaza, Indianapolis, IN February 10-15, 2019 ▪ What types of redevelopment would the market support for this site? ▪ How can multimodal connectivity be improved within the site and study area? ▪ What potential problems might the City of Indianapolis, the Irvington Development Organization, and IndyGo face when pursuing redevelopment of the site? ▪ What actionable steps should the City of Indianapolis, the Irvington Development Organization, and/or IndyGo take to initiate and pursue redevelopment of the site? ▪ What roles might the Federal Transit Administration Joint Development program, Indiana redevelopment law, and/or tax-incremental financing play in the potential redevelopment of the site? 9 Irvington Plaza, Indianapolis, IN February 10-15, 2019 Panel Assignment (the Questions Distilled) ▪ Redevelopment types and program for study sites? ▪ How to improve multimodal connectivity in and around study site? ▪ What are potential problems? ▪ What are the steps? ▪ What roles can FTA Joint Development program, Indiana redevelopment law and/or TIF play? 10 Irvington Plaza, Indianapolis, IN February 10-15, 2019 Presentation Overview I. Introduction II. Market III. Design IV. Connectivity V. Actions and Challenges VI. Implementation VII. The Numbers VIII.Conclusion 11 . I grim2cm Egg; 2_ .m__oqwcm_bc_ .wNwE c293: Advisory Services Program c: 4 52" CD (U c: .?ng' '13 Urban land UH msmme Advisory Services Program The Role of the Subject Project Irvington Plaza, Indianapolis, IN February 10-15, 2019 It’s all Irvington – let’s connect it 14 Irvington Plaza, Indianapolis, IN February 10-15, 2019 Getting Your Future Right ▪ A more sustainable development model ▪ The triple bottom line ▪ BRT Economic Environmental Sustainable Energy Extreme Weather Protection Natural Resource Availability Jobs / Income Savings, Investment Credit-worthiness Social Health Community Cohesion Organizing Capacity 15 Irvington Plaza, Indianapolis, IN February 10-15, 2019 Irvington Plaza Concept ▪ A gathering place ▪ A gateway ▪ A neighborhood 16 A Real Plaza for Irvington - . i '5 WE- ?didULI Advisory Services Program Irvington Plaza, Indianapolis, IN February 10-15, 2019 Presentation Overview I. Introduction II. Market III. Design IV. Connectivity V. Actions and Challenges VI. Implementation VII. The Numbers VIII.Conclusion 18 Irvington Plaza, Indianapolis, IN February 10-15, 2019 Market Analysis: Overview ▪ Focus • Housing • Retail • Creative space = Mixed-use ▪ Why, in general? • Former shopping center sites have proven to be viable locations of mixed-use development ▪ Unique in site size in older communities ▪ Depth allows for housing options away from arterial ▪ Retail remains viable due to sites accessibility and visibility, even if it is at a reduced footprint ▪ Altogether, have provided opportunities to create new neighborhoods ▪ The specifics of Irvington Plaza 19 Irvington Plaza, Indianapolis, IN February 10-15, 2019 Market Analysis: Housing ▪ Marion County • Demand for 18,082 new, attached units in walkable neighborhoods in a span of 30 years (2010-2040) o 600 units per year, average (Greenstreet, 2018 Blue Line TOD Strategic Plan) ▪ Irvington Plaza site • Blue Line BRT station at Irvington Plaza + Adjacent to Pennsy Trail + New street grid + New commercial and community uses = A walkable neighborhood, not just a transit-oriented housing site ▪ 440 attached units at this large, strong site 20 Irvington Plaza, Indianapolis, IN February 10-15, 2019 Market Analysis: 440 Attached Units ▪ Overview • Demand for additional available product in the Study Area Current velocity of higher priced single-family home sales in Irvington Lower-priced homes remain on the market for longer periods • 2.5% of total 30-year demand in Marion County • 5-year phase-in; 88 units per year 15% of annual average 30-year absorption • 22 units per acre (gross density) Exceeds residential minimum for District Centers, Station area’s designation (TOD Strategic Plan) • 6.7% increase in dwelling units in the Study Area Creates a new neighborhood & a new housing product for Irvington market Expands demand for retail and commercial space Increases potential BRT ridership 21 Irvington Plaza, Indianapolis, IN February 10-15, 2019 Market Analysis: 440 Attached Units ▪ (Working) Profile • 226 units For-sale townhomes 2-story + loft, 1,600 square feet of living space plus garage 2-story, 1,200 square feet of living space plus garage • 214 units Urban Niche Rental 624 square feet average Studios & 1-bedrooms; some 2-bedrooms Multiple market segments/generations Millennials/Gen Z who prefer to rent Boomers/seniors looking to downsize, one-level, remain in community Everyone in between » Ur 22 Irvington Plaza, Indianapolis, IN February 10-15, 2019 Market Analysis: Retail/Commercial ▪ Overview: • 62,000 square feet of supportable retail/commercial space • 20% of the current retail/commercial square footage at Irvington Plaza • Exceeds retail minimum for District Centers, station area’s designation (TOD Strategic Plan) ▪ (Working) Profile • Niche grocery store: 20,000-30,000 square feet Anchor Visible from Washington Street • Neighborhood/community-serving retail: 3,000-5,000 square feet • Food service: 8,000-10,000 square feet • Artists and maker space/specialized flex space: 27,000 square feet » UU » F 23 Irvington Plaza, Indianapolis, IN February 10-15, 2019 Presentation Overview I. Introduction II. Market III. Design IV. Connectivity V. Actions and Challenges VI. Implementation VII. The Numbers VIII.Conclusion 24 Irvington Plaza, Indianapolis, IN February 10-15, 2019 Evolution of Place ▪ Design conceptualization ▪ Creating a sense of place • Gathering places • Community amenities • Pennsy Trail connection ▪ Connection of the urban fabric ▪ Programming a marketable and flexible community plan ▪ Creating a real plaza in Irvington 25 . . . 5 10191?? i? 411.rIqunI'I'gg?. Ii i?tb?i 541 i! 2 . {155:- il ilt?. t? ill I . ?siAVA- i is}! ?r 1111 5' . u! II?wgb113?: ?5 1 3: 322444;. 's?s Irvington Plaza, Indianapolis, IN February 10-15, 2019 aw it. ii?? alli'll -I-rbq .- - I il? t. - Hi 9 {ifT'El'L 4? ?3149 l?p W3 Imiilqiw IIggf: by y. ii 26 Advisory Services Program Irvington Plaza, Indianapolis, IN February 10-15, 2019 Community Gathering Places Community Arts & Performance Center ▪ Indoor/outdoor performing spaces ▪ Classrooms ▪ Exhibit & meeting spaces ▪ Cultural & fine arts spaces ▪ Studio & crafts hall 27 Irvington Plaza, Indianapolis, IN February 10-15, 2019 Community Gathering Places Dairy Queen Pavilion 28 Irvington Plaza, Indianapolis, IN February 10-15, 2019 Community Gathering Places Outdoor Spaces • Ice skating in winter / splash fountain in summer • Outdoor seating • Kiosks & pop-up stands • Food truck parking • Market & exhibit pavilion • Auto loop that can be closed for festivals 29 Irvington Plaza, Indianapolis, IN February 10-15, 2019 Development Concepts ▪ Commercial first floor on the plaza ▪ Small grocer ▪ Residential loft units on plaza and urban niche units ▪ Urban townhomes with garage in rear 30 Irvington Plaza, Indianapolis, IN February 10-15, 2019 Development Concepts ▪ Tree-lined streets with side walks ▪ Shaded parking ▪ Street side guest parking ▪ Pennsy Trail connections ▪ Maker/creative space/loft cottages 31 Irvington Plaza, Indianapolis, IN February 10-15, 2019 Ford Site Study Area ▪ Transitional buffer area ▪ Park, ball fields, solar fields and parking ▪ Potential recreation fields for school and Irvington plaza community spaces 32 Irvington Plaza, Indianapolis, IN February 10-15, 2019 Presentation Overview I. Introduction II. Market III. Design IV. Connectivity V. Actions and Challenges VI. Implementation VII. The Numbers VIII.Conclusion 33 Driving Multimodal Connectivity Irvington Plaza, Indianapolis, IN February 10-15, 2019 ▪ Capitalizing on the BRT ▪ Reconnecting Irvington ▪ Integration of urban grid ▪ Reinforcing Pennsy Trail 34 Capitalizing on the BRT Irvington Plaza, Indianapolis, IN February 10-15, 2019 ▪ Foster Sustainability ▪ Create a Gateway to Irvington • Promote Irvington Plaza • Name Ridgeview Drive station as “Irvington Plaza” • Highlight BRT station with placemaking and special features • Improve Washington Street pedestrian crossing ▪ Strengthen BRT & TOD Relationship • BRT ridership projections support Irvington Plaza • Increased TOD density creates more riders to support BRT Source: www.indygored.com g 35 Irvington Plaza, Indianapolis, IN February 10-15, 2019 Reconnecting Irvington ▪ Extend streetscape from Historic Irvington to Irvington Plaza • Leverage Historic Irvington walkability (Walk Score: 78) • City support needed for construction and maintenance 36 Irvington Plaza, Indianapolis, IN February 10-15, 2019 Integrating the Urban Grid ▪ Introduce urban grid through Irvington Plaza • Provides access to and through Irvington Plaza for all residents from all sides ▪ Improve East-West connectivity south of Washington Street • Promotes synergy between Historic Irvington and Irvington Plaza • Promotes “Park Once” for users at Irvington to park once to walk between all destinations in Irvington (8 minute walk between Historic Irvington and Irvington Plaza) ▪ Design Irvington Plaza as a Multimodal Hub • Design elements to support bikeshare, carshare, dockless bicycle and scooters, and rideshare (Uber/Lyft) drop-off/pick-up considerations • Connect Pennsy Trail to Irvington Plaza BRT station 37 Irvington Plaza, Indianapolis, IN February 10-15, 2019 Reinforcing the Pennsy Trail ▪ Promote Pennsy Trail as local connector • Encourage pedestrian bicycle connection between Historic Irvington, Irvington Plaza and Ford site ▪ Address Limited Regional Connectivity • Abrupt eastern terminus at Shortridge Road • Need to improve wayfinding heading west to Ritter Avenue and north to Ellenberger Park 38 Irvington Plaza, Indianapolis, IN February 10-15, 2019 Presentation Overview I. Introduction II. Market III. Design IV. Connectivity V. Actions and Challenges VI. Implementation VII. The Numbers VIII.Conclusion 39 Potential Issues / Solutions for Public Sector in Redevelopment Irvington Plaza, Indianapolis, IN February 10-15, 2019 ▪ Overall challenges of public-agency led redevelopment ▪ Importance of community engagement 40 Irvington Plaza, Indianapolis, IN February 10-15, 2019 Overall Challenges / Solutions for Public Agency Redevelopment ▪ Demanding of resources and capacity – 3rd party support; transportation, urban design and finance ▪ Do exhaustive research ▪ Know upfront what you want to include in the planning for community that will impact negotiations ▪ Plan to shepherd approvals to build track record ▪ Steady focus and push hard • You can do it 41 Irvington Plaza, Indianapolis, IN February 10-15, 2019 Community Engagement ▪ Varying perspectives can be informative ▪ Engage community early and directly 42 Irvington Plaza, Indianapolis, IN February 10-15, 2019 Presentation Overview I. Introduction II. Market III. Design IV. Connectivity V. Actions and Challenges VI. Implementation VII. The Numbers VIII.Conclusion 43 Irvington Plaza, Indianapolis, IN February 10-15, 2019 Leading from the Front ▪ Implementation strategies ▪ Value of certainty & public sector role ▪ Upcoming steps 44 Implementation Strategies Irvington Plaza, Indianapolis, IN February 10-15, 2019 ▪ Larger, full-service private developer ▪ Private master developer & vertical developer(s) ▪ City as master developer • Self-perform • 3rd party fee developer ▪ Site assemblage informs potential phasing / block development ▪ Public improvements 45 Value of Certainty & Public Sector Role Irvington Plaza, Indianapolis, IN February 10-15, 2019 ▪ Zoning ▪ Streamlined infrastructure and utility coordination ▪ Execution ▪ Focal point • Potential role for Irvington Development Organization ▪ Year-round programming / curation of events ▪ Funding for maintenance / operations 46 Irvington Plaza, Indianapolis, IN February 10-15, 2019 Upcoming Steps ▪ Determine implementation strategy ▪ Address zoning for Irvington Plaza area properties ▪ Engage broader community and key stakeholders ▪ Develop the community gathering space as informed by the community engagement ▪ Re-energizing the Irvington Development Organization 47 Alternative Financing / Additional Sources of Funds Irvington Plaza, Indianapolis, IN February 10-15, 2019 Financing Tools & Incentive Programs ▪ Joint Development • $2M Federal Transit Administration • $2M Equitable Transit-Oriented Development Fund through Indianapolis Neighborhood Housing Partnership (only for affordable housing) ▪ Local – Irvington Plaza Economic Development Area designation (pending) • Unlocks tax increment financing to acquire land, clear sites, remediate, etc. ▪ Local – Abatements • Real property & personal property tax • Vacant building ▪ State – Corporate Income Tax Credits • Economic Development for a Growing Economy (EDGE) • Hoosier Business Investment (HBI) ▪ Federal • New Markets Tax Credits 48 Irvington Plaza, Indianapolis, IN February 10-15, 2019 Presentation Overview I. Introduction II. Market III. Design IV. Connectivity V. Actions and Challenges VI. Implementation VII. The Numbers VIII.Conclusion 49 I .23Irvington Plaza, Indianapolis, IN February 10-15, 2019 nu?1-min- (gr: "cll? - v5! 11?. - a; L- at; -- rum-?kw? 9.93.19- - - Kit-Iey . 131 Advisory Services Program Irvington Plaza, Indianapolis, IN February 10-15, 2019 ?ll "d Advisory Services Program Zoning Density Map Irvington Plaza, Indianapolis, IN February 10-15, 2019 Revenue / Value ▪ ▪ ▪ More than $106 million in Value $3 million in Annual Commercial Revenue Adds more than $50 million to the Residential Tax Base Townhomes Apartment Grocery Retail Space Office/Flex Total Value 226 units 214 units 25,000 sq ft 10,000 sq ft 24,000 sq ft $56,000,000 $36,000,000 $8,000,000 $1,700,000 $4,000,000 $106,000,000 52 Irvington Plaza, Indianapolis, IN February 10-15, 2019 Costs Total Cost / Total Cost Unit $41,000,000 $181,125 Quantity 226 Cost per Unit $150,000 214 $110,000 $29,000,000 $135,135 Grocery 25,000 $100 $3,200,000 $131 Retail Space 10,000 $100 $1,300,000 $131 Office/Flex 24,000 $100 $3,150,000 $131 26 $350,000 $9,500,000 $367,500 88,000 $25 $2,700,000 $30 Townhomes Apartment Site Prep Plaza Total Cost $90,000,000 53 Irvington Plaza, Indianapolis, IN February 10-15, 2019 Property Valuation ▪ Property Value is the difference between Total Project Value and Total Non-Land Cost Total Project Value $106,000,000 Non-Land Cost ($90,000,000) ROI ($15,000,000) Property Value $1,000,000 54 Irvington Plaza, Indianapolis, IN February 10-15, 2019 Private Developer Proforma ▪ Value is $106 million - this doesn’t work! Land $6,000,000 Hard Cost $78,916,590 Soft Costs $10,891,800 ROI $15,000,000 Total Cost $110,808,390 55 Irvington Plaza, Indianapolis, IN February 10-15, 2019 City as Master Developer Land $6,000,000 Site Prep and Plaza $12,500,000 Total Cost $18,500,000 56 Irvington Plaza, Indianapolis, IN February 10-15, 2019 Healthy Proforma ▪ With the City as Master Developer, economics now work Value Non-land Cost & ROI to Developers Land Cost Paid to Government Developer Equity $106,000,000 ($102,500,000) $3,500,000 $24,000,000 57 Irvington Plaza, Indianapolis, IN February 10-15, 2019 Funding of the City Work ▪ Revenue from development will produce $1.2 million in additional annual tax revenue. TIF Bond Land Sales Total Sources Cost Surplus $17,000,000 $2,500,000 $19,500,000 ($18,500,000) $1,000,000 58 Public / Private Partnership Irvington Plaza, Indianapolis, IN February 10-15, 2019 ▪ Land Banking / Contribution TIF • Property Value based on pure open market is not sufficient • City has the horizon to wait for all phases to come on line • City can secure land or choose to provide the site preparation 59 Irvington Plaza, Indianapolis, IN February 10-15, 2019 Presentation Overview I. Introduction II. Market III. Design IV. Connectivity V. Actions and Challenges VI. Implementation VII. The Numbers VIII.Conclusion 60 Irvington Plaza, Indianapolis, IN February 10-15, 2019 Questions?