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Oklahoma CitOklahoma CityCore to ShoreCore to ShoreAn Advisory Services PanelFebruary 28- March 5y2010

Oklahoma CityFebruary 28 – March 5, 2010

The Urban Land Institute (ULI) is a nonprofit research and education organization

• ULI Mission: To promote leadership in the responsible • ULI Mission: To promote leadership in the responsible use of land to create and sustain thriving communities worldwide

• ULI is a membership organization with nearly 40 000 members ULI is a membership organization with nearly 40,000 members, worldwide representing the spectrum of real estate development, land use planning and financial disciplines, working in private enterprise and public service.

Wh t th U b L d I tit t d• What the Urban Land Institute does:– Conducts Research – Provides a forum for sharing of best practices– Writes, edits and publishes books and magazines

O i d d t ti– Organizes and conducts meetings– Directs outreach programs


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Advisory Panels• Conducting Panels since 1947

• 20 panels a year on a variety of land use subjects

• Provides independent/objective /candid advice

• Process

– Review background materials

– Receive a sponsor presentation & tour

C d t t k h ld i t i– Conduct stakeholder interviews

– Consider data, frame issues and write recommendations

Make presentation– Make presentation

– Produce a final report


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Sponsors

• City of Oklahoma City• ULI Oklahoma• ULI Oklahoma


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Six Points

• Many thanks• Nice going on the bold • Nice going on the bold

visionP i il bili• Presentation availability

• Long Term• Guiding Principles• Panel• Panel


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Panelists

Bill Hudnut, ChairAnita MorrisonBill ClarkeTom HesterRoss TilghmanCharles JohnsonSt S illSteve SpillmanJim Cloar

ULI StaffULI StaffTom EitlerSarah Jo PetersonCaroline DietrichCaroline Dietrich


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Market Framework

• Growing community• Vibrant economy


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Office Potentials

• 5.2 million square feet24% t• 24% vacant

• 900,000 square feet being , q gvacatedC ld h 33% i• Could reach 33% vacancies


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Prospective Residents

• Singles and childless couples• Young professionalsg p• Empty nesters• Divorced personsDivorced persons• College students• Artists• Artists• Corporate staff• Transplants• Transplants


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Recent Housing Development

• 15 recent developments• 232 new for sale townhouses and • 232 new for-sale townhouses and

condos since 2001915 l i i 2001• 915 new rental units since 2001

• Multiple developers, types and concepts


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Housing Development Performance

• High-end for-sale developments stalledstalled

• Lower-cost for-sale units sold wellR l d l h hi h • Rental developments have high occupancies and rents much higher than elsewhere in region


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Future Market Potentials

• Potential for 2,000 units over the next 20 years

• Rentals 50 to 60 percent of new units

• Full range of prices/rents to serve the full market

• For-sale units starting at $100,000• Rental units starting at $600 per

month


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Achieving the Market Potential

• Downtown residents need:– Safe, comfortable neighborhoods– Grocery store and other support retail in longer

run– Downtown amenities

• Quality education and child care services• Rents and prices do not support the full costs of

development• Public investment will be essential to reduce land • Public investment will be essential to reduce land,

infrastructure and parking costs


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Retail Market• Major new department store and retail

center– Not going to happen– Downtown lacks the density and

incomesincomes• Boulevard is not a prime retail street

– Best shopping streets have low speeds and retail on both sides

– Focus on cafes, restaurants, cards, gifts etcgifts, etc.


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Lifestyle-Type Retailers

• Lifestyle-type retailers– Restaurants, bookstore, home , ,

furnishings, bath and body shops, a few apparel retailers

• More appropriate in Bricktown– Infill locations– Cluster in the eastern end near

Bass Pro Shops


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Key Findings

• Need public/private partnerships and developer incentivesdeveloper incentives

• Need active marketing and “branding”N 15 l• Not a 15-year plan


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Understanding Core to Shore


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Planning in Context• Planning & Development ongoing --

CBD, Bricktown, Deep Deuce, Midt A t Di t i tMidtown, Arts District

• Entertainment, Commercial, Residential

• Core to Shore should be complementary


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Connections

• Open space and travel connections to north of the Boulevard

• Build on Project 180


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Planning To Date

• Excellent plan prepared• Current level of planning is at land p g

use plan level vs detail of illustrative materials

• Illustrative might come true but experience says that the plan will evolve overtime


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A Land Use Plan

• Abstracting the plan to land uses show the general distribution of development

• Flexibility will be desirable but standards will be essential

• Upcoming efforts will fill in these details – i.e., zoning overlays, design guidelines, t tstreetscapes


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Organizing Concepts• North / South and East / West open space

axes• North / South Myriad Gardens to I 40• North / South – Myriad Gardens to I-40• I-40 is a street level visual barrier• North / South – Continues through

Promenade Park to the river• East / West – connect to the spine


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Current Plan - Arts District • Open space corridor south from Devon

Tower through Myriad Gardens to the BoulevardBoulevard

• Connection on Harvey alignment south of Myriad Gardens is crucial from urban design standpointstandpoint

• Boulevard frontage to be mixed use destination retail – a challenge

MXDMXD


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Current Plan - Central Park District• Most significant features – Central Park,

Open Space Corridor, Union Station, C ti C t

Convention Center

Convention Center• Central Park – the jewel of downtown• To the west – medium density residentialTo the west medium density residential• To the east – the convention center and

convention hotel• Far east – future development area

MDR

HotelFuture


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Current Plan - Riverfront District• The new I-40 barrier – at-grade roadway• Most development here may happen later

O S id th h P d • Open Space – corridor through Promenade Park and playfields south of I-40

• Riverfront – important to activate early in time

• To the west – lower density residential• Near Promenade Park – medium density Near Promenade Park medium density

residential or mixed use• Little Flower Church area

F t P ll A P t f t d l t• Far east – Pull A Part – future developmentFuture

MDR/MXDLDR


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Understanding Core to Shore

• Core to Shore – Early StagesStages

• Central North South Access Excellent Concept– Excellent Concept

• East West Connections back to Core important

• Remain Flexible Regarding Plan Elements


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City Building and Open Space Framework

• Creating meaningful places by linking– Open spacep p– Transportation– Land use & neighborhoodsLand use & neighborhoods

• Open space components of creating meaningful placesg p– Streetscapes: scale, materials, comfort– Parks: program hierarchy of parksParks: program, hierarchy of parks– River: program, multiple destinations


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Open Space Components: Connections

• Civic axis connecting north to south

• Maximize connections across I-40 and your N/S streets for pedestrians and bikes


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Open Space Components: Neighborhoods and Connections

• Connect E/W with neighborhoods to create meaningful places

• Boulevard: a great green street g gbased on complete street principles with typical street ROW to minimize pedestrian crossing distances


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Make the River a Destination• Parks Dept, Riverfront Authority and other

agencies should work together on a broad OS & development visionOS & development vision

• Locate recreation & cultural destinations– Kayak course, Aquatic center– Regional riverfront park with recreation

fields– Non-profits: girl scouts and soccer– Cultural theme – build on history of the

river and Indian CenterMarina & Dining– Marina & Dining

– Medium to higher density housing


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Using the Open Space Framework to Allow for Mixed Income

• Create grade separated OS – take advantage of I-40 elevation

• Create varied real estate values with OS

• Creating continuous open space Creating continuous open space system– green space connecting to primary

parks


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Bringing in the river• Creating continuous open space system

– water connecting to the river – canals, inlets or fingersinlets or fingers


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Use Open Space to Leverage Land Use• Promenade Park can engage

Robinson/Hubcap Alley and connect Central Park with the RiverCentral Park with the River.


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The Entire Open Space Framework


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Other Neighborhood Considerations

• Land developments regulations & regulating plans• Pattern books based on your historical heritagey g• Underground utilities


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Connectivity

• Good connectivity essential to development

• More than driving!• Anticipate and accommodate mix of p

travel modes• Many useful plans & projects, but

more coordination is needed


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Connectivity

• Recommend a Downtown Access and Circulation Master Plan– Purpose: Coordinate function,

capacity and design of transportation facilities and services

– Tailor new ACOG multi-modal model to study area

– Capability to test new ideas and services


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Connectivity Framework -- Districts• Street Network

– Reclaim grid– Two-way streets are usually best

• Pedestrian NetworkAt d lk h – At grade walkways wherever possible

– Over-/Under-crossings must be gconvenient, attractive

– Additional pedestrian crossing over I 40 at LeeI-40 at Lee


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Connectivity Framework -- Districts• Bike Network

– Shared or dedicated lanes on low & moderate volume streetsvolume streets

– Separate paths to avoid high-volume streets• Transit

– Identify commuting opportunities incl. Park & Ride– Evaluate midday circulation needs– Special Events– Special Events– Tourists


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Connectivity• Transit Planning

– Need clear purpose & routeE l t t (t t l t id )– Evaluate costs (total cost per rider)

– Proceed carefully, especially with streetcar• Streetcar cautions:

– Create positive images for neighborhoods, but…– Only one factor in spurring development

Keep benefits in perspective– Keep benefits in perspective


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Connectivity Framework -- Destinations• Verify arrival and departure routes for cars• Provide pedestrian and bike routes

Pl f i hi l• Plan for service vehicles– Truck access from nearby highways– Trucks should avoid primary pedestrian routes


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The Boulevard• A great street! But not a large street.• Project 180 -- excellent guidelines for arterials

M k B l d th b t th• Make Boulevard the best among them• Boulevard should reflect its role in downtown access

– Share of traffic– Gateway to new uses


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The Boulevard• Recommendations

– High quality, landscaped boulevard– Be good for pedestriansBe good for pedestrians

• Maximum 110 feet width• Median refuge for pedestrians• Slow speeds under 30 mph• Slow speeds, under 30 mph• Sidewalks separated from

travel lanesSome congestion shows vitality!– Some congestion – shows vitality!

– Some on-street parking in parking lane


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The Boulevard

• Recommendations– Dramatic feature at

Central Park!Central Park!


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The Boulevard

• Boulevard as surface street from Pennsylvania Avenue Create new at‐grade

• Create new intersection to connect arterials to I-40 in vicinity of Western/Classen

intersection Reclaim ramp ROW for other uses

– Re-enforces arterial, not highway, speeds

– Balances demand and capacity– Increases redevelopment

potential west of downtownpotential west of downtown


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The Boulevard• A Great Street!!

– Prioritizes beauty over capacityE t bli h l k f d t– Establishes new look for downtown

– Restores vitality of this and other major streets– Complements new development


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Convention Center/Hotel• Oklahoma City’s current Convention Center is too

small• Recommended convention center offering:

– 200,000 to 250,000 square feet of exhibit space, space,

– 40,000 square foot ballroom– 60,000 square feet of meeting space – A second phase expansion should allow a 50 to

100% expansion of the first phase Beca se of time to implement and impact on site • Because of time to implement and impact on site plan, begin this initiative immediately


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Meeting Industry Trends Review• Millions of conventions annually• Face to face meetings will continue

2009 d • 2009 was a down year• The rationale for meetings and

associations still exists • Convention centers play four functions

in a community:– EducationEducation– Trade– Recreation– Social


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Oklahoma as a Destination

• Capital cities and University towns attract a

Metro Population Downtown CVB Budget Exhibit HallCity RoomsOklahoma City

C $

variety of events• Convention centers host

Current 1,230,369 2,004 $4,232,100 80,000Recommended 4,000 $7,000,000 250,000

Current CompetitorsAlbuquerque 864,696 1,000 $6,831,275 166,546Little Rock 690,000 1,200 $3,500,000 82,892Omaha 838 875 2 000 $2 920 160 194 300

consumer shows, festivals, entertainment events and

i l f i

Omaha 838,875 2,000 $2,920,160 194,300

Target ProfileColumbus 1,811,662 4,000 $6,461,017 300,000Ft Worth 6,409,378 2,000 $7,697,527 182,266Louisville 1,252,795 4,000 $12,372,317 191,000

social functions• The majority of events will

b t Okl h Cit

Touristic CitiesAustin 1,762,915 5,000 $9,419,567 250,000Dallas 6,409,378 1,000 $14,085,578 951,726Indianapolis 1,746,373 5,033 $10,382,436 300,000Nashville 1,649,381 3,000 $11,810,500 366,300San Antonio 2,087,385 9,000 $22,429,679 400,052be new to Oklahoma City

and the state


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Convention Center Location

• Core to Shore shows convention center immediately east of Central Park

• Site works physically, however: – Aesthetically location will create massive wall y

against the park– Site will be hard to assemble, and has

infrastructure relocation requirements.– Most importantly convention center consumes

attractive development site


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Convention Center Location• Lumber Yard site area is deemed best for

the convention center– Anchors the Brickyard development– Establishes a presence on the new

BoulevardBoulevard– Initiates development in the Core to

Shore area– Good access and visibility– Good Bricktown access, with no

barriers to this zonebarriers to this zone– Site is easier to assemble


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Cox Convention Center• Serves 400,000 to 600,000 people annually• Arena used most • Meeting space serves two hotels• Presence of a “Class B” arena and smaller exhibit

hall is useful Accommodates:hall is useful. Accommodates:– Sports and entertainment events, – Youth and collegiate sports tournamentsg p– Secondary sports franchises– Hosts events in association with the Ford

Arena. • Keep venue for 15 to 20 additional years


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Hotel Strategies• Currently 2,000 rooms serve the

downtown area. • Occupancy for these hotels

2009 2008 2009 2008

Occ % ADR

• Occupancy for these hotels was 66% in 2008 and dropped to 64% in 2009A d il $121 i

Albuquerque, NM 55.9 61.6 71.45 75.37Austin, TX 60.7 67.0 101.51 110.08Fort Worth‐Arlington, TX 54.2 64.1 88.83 93.00Kansas City, MO‐KS 52.3 57.4 80.62 86.41

• Average daily rate was $121 in 2008 and dropped to $114 in 2009.

Little Rock, AR 53.8 59.6 74.66 77.08Louisville, KY‐IN 52.6 55.8 85.57 91.52Memphis, TN‐AR‐MS 53.0 56.8 78.58 84.08Omaha NE 54 2 61 7 83 80 88 28

• City wide Oklahoma City had slight premium in occupancy, but a lower overall ADR when

Omaha, NE 54.2 61.7 83.80 88.28St Louis, MO‐IL 54.7 58.6 81.54 86.87Tulsa, OK 54.9 61.2 72.45 72.18Average 54.6 60.4 81.9 86.5

compared to a set of peer cities City of Oklahoma City 56.1 61.4 $74.14 $77.23

Variance 1.47% 1.02% $7.76 $9.26


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Target Inventory• No more than 50% of the downtown inventory available to

support conventions• Ultimately 4,000 rooms will be neededy ,• 15 to 20 year timeframe • Recommended hotel supply additions are:

– New headquarters hotel: 600 to 700 rooms (can not be New headquarters hotel: 600 to 700 rooms (can not be phased)

– Two boutique hotels: 70 to 100 rooms each– Second full service hotel: 400 roomsSecond full service hotel: 400 rooms– Two focus brand hotels of 150 to 200 rooms

• Opens no later than six months after Convention Center • Four star quality brand affiliated 60 000 to 70 000 square feet • Four star quality, brand affiliated - 60,000 to 70,000 square feet

of meeting and ballroom space


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Hotel Sites• Does not have to be physically connected to

the convention center, but proximate walking distance is essentialdistance is essential

• Site shown in the Core to Shore plan is ideal, but must have attractive underpass along the Boulevard to the convention centerBoulevard to the convention center

• A site of 80,000 to 100,000 square feet is needed for hotel, one half to one quarter the size of the site shown in Core to Shore Plan

• Other hotels can occur throughout the planning area, but should occur within 2,000 feet of the convention center

• Boutique hotel locations have more flexibility


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Headquarters Hotel Financing• City must be unyielding in both its advocacy to grow

the overall room inventory in the city and mandating th i d lit f it h d t h t l the size and quality of its headquarters hotel

• Headquarters hotel’s financing is complex• New hotels improve all hotel demand, do not hurt New hotels improve all hotel demand, do not hurt

demand• City must demand a sufficiently sized four star hotel,

with 60,000 to 70,000 square feet of meeting space-Developers can not structure conventional financing

• Too small a hotel or one with insufficient meeting Too small a hotel or one with insufficient meeting space affects the performance of the convention center


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Headquarters Hotel Financing• A 700 room hotel will cost close to $200 to $220 million• Required incentives have recently ranged from 20% to

30% of cost• Close to $50 million for a project this size• Cities have used various strategies to finance hotels:• Cities have used various strategies to finance hotels:

– Approach 1 - Appropriate incentives via cash, parking, land and infrastructure

– Approach 2 - Use of city debt to serve as the “bank” for debt, with the developer investing equityApproach 3 O nership of the hotel b a p blicl – Approach 3 - Ownership of the hotel by a publicly sponsored corporation


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Headquarters Hotel Financing• Approaches 1 & 2 work well, but add complexity to

the deal structure• Approach #3 puts the control in the city’s hands and • Approach #3 puts the control in the city s hands and

has the absolute lowest cost of capital• Examples:

– Ft. Worth Omni- Approach 1– San Antonio Grand Hyatt- Approach 2– Denver Hyatt and Omaha Hilton- Approach 3Denver Hyatt and Omaha Hilton Approach 3


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CBD South

• Devon Tower anchors N-S axis• Corporate/leisure hotel

S i lt t il d t t ll bl k• Specialty retail and restaurants on smaller blocks


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Considerations for Bricktown• Entertainment/lifestyle retail• Specialty grocery

Li it d i h t l• Limited-service hotels• Multi-family residential• Academy of Contemporary Music


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Central Park Neighborhood

• Convention hotel• Boutique hotelsq• Residential (higher density)• Neighborhood retailNeighborhood retail• Convention parking on Shields• Central Park parking near Union • Central Park parking near Union

Station


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Future Development East

• Convention Center• Other Uses• Other Uses


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Neighborhood to the West• Mix of residential uses (mid-density)

– Townhomes, apartments, condosR f i d t– Range of prices and rents

• Neighborhood school• Neighborhood grocery and retail


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Riverside Neighborhoods• 2 to 3 neighborhoods• Mix of residential uses (lower and mid-densities)

Si l f il t h t t – Single-family, townhomes, apartments, condos

– Range of prices and rents• Cultural, educational, historic, and non-profit

organizations• Neighborhood and specialty retailNeighborhood and specialty retail


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Southeast Development

• Corporate campus site OR• Water recreation/entertainment

destination site


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River’s Edge• Apartments and condos (higher density)• Retail/entertainment: restaurants and

small boutiquessmall boutiques


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Education, Arts & Culture


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First Projects

• Convention Center and HotelTh B l d• The Boulevard

• Central Park• Residential west of Central

P kPark


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First Projects (cont’d)

• Streetscape & Plaza• Pre development (land • Pre-development (land,

remediation) east of Central Park and RiverfrontPark and Riverfront

• Utility relocation • Insure Harvey link between

Boulevard and Myriad Gardens


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Other

• Adopt design guidelines and regulations• Land acquisitionq• Develop incentives for targeted private

development p• Business plans for long-term

management/programming• Downtown Access and Circulation Plan


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Core to Shore Coordinator

• Communication• Collaboration/facilitation• Convening • Convening • Continuityy


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Answering the Priority Questions1. What are the most effective means of bringing about high-quality private

development (especially residential and mixed-use) that is consistent with the bli bj ti f th C t Sh Pl i d t t d t t public objectives of the Core to Shore Plan, in order to support and not compete

with the momentum started in other parts of Downtown?2. What should the land uses be along the east and west sides of the park?g p3. In what sequence should we implement the major components of the Core to Shore

Plan?4. How do we make mixed-use development work, especially along the boulevard?5. How do we interface with the River to best activate it and make the most of that

asset?asset?6. Where should Promenade Park be located?


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Questions?Questions?


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