Preliminary Market Analysis of Boulevard Site Richmond, VA

January 14, 2016

Preliminary Market Analysis of Boulevard Site

City Council Presentation April 25, 2016

Presentation Purpose

• Context, Challenge, Opportunity

• Boulevard Preliminary Market and Impact Analysis

• Community Meeting & Public Input Sessions

• Online Survey Results

• Conclusion and Recommendations

• Next Steps

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Bounded by I-64’95 To the north, Hermitage Road to the east, West Leigh Street to the South, and North Boulevard to the west

Boulevard Site Area

Current Urban Development Context & the Boulevard Neighborhood Site

• Economic restructuring has taken a toll on many communities in America

• Many places search for a recipe for future prosperity

• These concerns are heightened by both cultural and demographic trends

• Competitive advantages will come to places that can quickly adapt to change

• Viewing the challenge through a comprehensive lens is critical

The Challenge

• One of the biggest challenges facing cities is how to generate, leverage, and maximize limited resources

• Communities are faced with increasing demands on their budgets

• Many cities are faced with rebuilding their tax base

• Crafting strategies aligned with these values is a key challenge

• Strong demographic & economic trends are contributing to an investment return to the urban cities

• A combination of lifestyle and economic factors are contributing to this direction

• Many communities are exploring ways to target investments to urban cities

• Understanding the dynamics associated with this opportunity is important for communities seeking to adapt

With Challenge Comes Opportunity

Preliminary Market and Impact Analysis

Richmond – The New Urban Core

Hired to:

Conduct preliminary economic

analysis for future redevelopment on

60 acre City-owned Boulevard site

Goals:

Maximize the economic potential

Position the City to provide the

greatest impact for citizens

The city’s future development will depend on its ability to remain competitive and attractive within a growing region…

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Key Findings

The current site has limited

economic impact

City-owned or publically-

subsidized stadium will not

have highest economic impact

Urban-scale mixed-use

development is the most viable

option

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Key Findings for Development on Boulevard Site

The site has tremendous

economic potential

The City is in a strong

position to control the

potential of this site

Transformative

Development

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Consultant Conclusions Limited Economic Impact (Current)

The site has limited economic impact on the City of Richmond

The Boulevard site is not reaching full market potential

Tripp Umbach’s analysis indicates that the site generates no

more than $400,000 (minus expenses and maintenance costs) in

annual total tax revenue to the City

A City- owned or publically-subsidized stadium will not have the

highest economic impact for potential development

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Consultant Conclusions Urban Scale Mixed-Use Development

Recommendation: Pursue a high-density, urban, mixed-use,

development on the 60 acres of the Boulevard property

To maximize the potential of the site while supporting unique place

making in the Boulevard neighborhood:

Mixed Housing

Retail/Entertainment

Urban flex space

Lodging

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Analysis for Market Potential

*Note – Each time frame denotes cumulative totals

Phased development over a 20-year period

• Represents what can be achieved, based on current market

needs and future projections of demographic changes

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Major Economic Potential for Redevelopment

Tripp Umbach projects the potential economic impact per acre is projected to be up to 20 times higher than current impact

Current

per acre,

per year

Tf1 per acre,

per year

Tf1 cumulative

total

Tf2 per year,

per acre

Tf2 cumulative

total

Tf3 per year,

per acre

Tf3 cumulative

total

Economic

Impact $240,000 $1,145,000 $68,700,000 $2,920,000 $175,200,000 $5,655,000 339,300,000

Employment

Impact 4.2 jobs 18.7 jobs 1120 jobs 44.5 jobs 2672 jobs 84.8 jobs 5087 jobs

Government

Tax Revenue

Impact

$6,667 $30,000 $1,800,000 $76,667 $4,600,000 $146,667 $8,800,000

[1] Tf1 – ‘Timeframe 1’ period from 2015 to 2020 (5 year period) [2] Tf2 – ‘Timeframe 2’ period from 2015 to 2025 (10 year period) [3] Tf3 – ‘Timeframe 3’ period from 2015 to 2035 (20 year period)

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Community Meetings & Public Input Sessions What’s the Community Saying?

Overview

• Tripp Umbach held a series of six public community engagement meetings located throughout the City of Richmond.

• The six (6) community meetings were as follows:

• January 19, 2016 – 6 p.m. – Richmond DMV, 2300 West Broad Street • January 20, 2016 – 6 p.m. – Southside Community Center, 4100 Hull Street • February 4, 2016 – 9 a.m. – Downtown Library, 1001 E. Franklin Street • February 4, 2016 – 6 p.m. – Thomas Jefferson High School, 4100 W. Grace

Street • February 11, 2016 – 12 p.m. – Huguenot High School Community Center,

7945 Forest Hill Avenue • February 11, 2016 – 6 p.m. – Martin Luther King, Jr. High School, 1000

Mosby Street

Key Takeaways from the Sessions

• Support for baseball and the Richmond Flying Squirrels to remain in the Boulevard neighborhood area was a dominating focal point of discussion

• The need for accessible and alternative forms of transportation is essential for community residents in the Boulevard neighborhood

• A number of constituents see the scope and size of the project to be much larger than just 60 acres

• In time, constituents wish to see the entire Boulevard area under one master planning project

• Constituents do not want the City to go at redevelopment on its own

Online Survey Results

Overview

• Tripp Umbach and the City of Richmond generated an online survey as a means to receive public input beyond the six public engagement meetings

• The survey was open to responses beginning February 1, 2016 until February 29, 2016, using a web-based survey development site, SurveyMonkey

• The City of Richmond made the survey link available on www.richmondgov.com, as well as provided the survey link in an email to local community associations and development groups and multiple media outlets

• The survey collection provided a way to garner feedback from community members on their vision for the Boulevard site

Top Community Issues Identified

Schools/ Education

Public Safety

Jobs & Economic Growth

Sports & Entertainment

Roads & Transportation

Retail/ Services/ Dining

In the City of Richmond, VA

874 728 640 142 138 145

In VA, but outside City of Richmond

374 350 355 93 62 41

Outside Commonwealth of VA

9 12 14 1 0 2

Total Responses (3980)

1257 (32%)

1090 (27%)

1009 (25%)

236 (6%)

200 (5%)

188 (5%)

Survey Results: Who Participated & Thoughts on Development Strategy

Location of Survey Respondents

66.21%

32.53%

1.26%

0.0% 20.0% 40.0% 60.0% 80.0%

City of Richmond

Outside of City but in Commmonwealth ofVirginia

Outside of Commonwealth of Virginia

Development Strategy in Boulevard Neighborhood

• Sports & Entertainment District 82%

• Midtown Mixed-Use 76%

• Research & Science Technology Park 26%

• Hotel/Convention Center 19%

• Housing Development 17%

• Corporate Headquarters 16%

• Hospital Campus 15%

Stadium Financing/Renovation Combination/Other

Private Developer

Raising City taxes

By diverting current City taxes from other services

Total Participants

In the City of Richmond, VA

1215 1362 36 52 2665

In Virginia, but outside City of Richmond

734 528 11 26 1299

Outside of the Commonwealth of VA

19 18 3 0 40

Total 1968 (49%)

1908 (48%)

50 (1%)

78 (2%)

4004

Key Findings

• The creation of a sports and entertainment district emerged as the top development strategy through the public engagement process

• The City of Richmond is ready for development on the 60-acre site to begin

• A development that is unique and transformative to Richmond is wanted on the Boulevard by citizens

• The community is in favor of keeping baseball on the Boulevard that is funded privately or via a combination of sources

• A recognition of urban and budget challenges facing the City of Richmond

Conclusion and Recommendation

• A multi-stakeholder master plan incorporating sports and entertainment is needed for the whole area surrounding the City-owned 60 acre boulevard site to maximize the social and economic impact for the city

• Tripp Umbach views the Boulevard site as a prime location for transformative development in the City of Richmond, Virginia

• It's the best interest for the City of Richmond to continue pursuing a high-density, mixed-use development on the City-owned 60-acre Boulevard site as a component of the overall master planning process

What’s Next?

Recommendation to strategically move forward with the redevelopment:

Discussions among key stakeholders on working together toward redevelopment

Final “Preliminary Market Analysis” Report

RFQ Development of Solicitation Process

Conceptual Land Use Plan Through More Public Engagement

Implementation Plan and RFP

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Questions/Comments