Baltimore, Maryland A ULI Advisory Services Panel December...

Westside Baltimore Advisory Services Panel

December 5-10, 2010

The Westside,

Baltimore, Maryland

A ULI Advisory Services Panel

December 5-10, 2010


December 5-10, 2010

Introduction

Glenda Hood

Former Mayor of Orlando and Secretary of State of Florida

Orlando, Florida


December 5-10, 2010

Sponsors


December 5-10, 2010

About ULI-What We Do

The Urban Land Institute (ULI) is a nonprofit research and education organization that focuses on issues of land use and real estate development.

ULI’s Mission:

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

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December 5-10, 2010

About ULI-Who We Are With over 30,000 members worldwide, the heart of the ULI experience is an open exchange of ideas, networking opportunities, and the ability to work with the leaders of the land use industry.

Members include:

•Developers

•Builders

•Engineers

•Attorneys

•Brokers

•Planners

•Market Analysts

•Investors, Bankers and Financiers

•Academicians

•Architects and Designers

•Public officials

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December 5-10, 2010

Advisory Services at ULI

• Over 600 panels since 1947

• 15-20 panels a year

• Panels provide independent, objective, and candid advice to governments, private firms and non-profits

• Panelists are volunteers

• Process – Review background materials

– Receive a sponsor presentation & tour

– Conduct stakeholder interviews

– Consider data, frame issues, and write recommendations

– Make presentation

– Produce a final report

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December 5-10, 2010

Panelists

Panelists

Glenda Hood, Chair

Abby Ferretti

Owen Lang

Stanley Lowe

Betty Massey

Ehud Mouchly

Tom Murphy

Ranne Warner

ULI Staff

Caroline Dietrich

Patrick Pontius

Ted Thoerig


December 5-10, 2010

A Collection of Neighborhoods


December 5-10, 2010

The Westside


December 5-10, 2010

Panel Assignment

How can the Westside attract new residents and businesses?

• Market Potential

• Historic Character

• Access to Transportation

• Arts, Retail, Residential, and Office

• Open Space

• Anchor Institutions

• Implementation


December 5-10, 2010

Vision and Leadership


December 5-10, 2010

Market Potential

Abby Ferretti

Principal

Partners for Economic Solutions

Washington, District of Columbia


December 5-10, 2010

Economic Climate

$2.4 Billion in research dollars

1,200,000

1,250,000

1,300,000

1,350,000

2000 2001 2002 2003 2004 2005 2006 20072008

2009

To

tal E

mp

loym

ent

Baltimore Region, Non-Farm Employment, 2000-2009

2,400,000

2,500,000

2,600,000

2,700,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Baltimore Region, Population Growth, 2000-2009


December 5-10, 2010

Office Market Conclusions

• Build on the existing institutional

assets:

– University of Maryland

– University of Maryland Medical Center

– University of Maryland Bio Park

• UMB Climbing to $700 Million

annually

• Natural synergy with medical office,

research, incubators, hospital &

university growth


December 5-10, 2010

The Actual Storyz

• Tale of two

markets, not one

• Proximity and

connections to

other activity hubs

Catalysts: State Center,

MICA, & UB

Catalysts

Central

Business

District

Catalysts: Sports &

Convention Attractions


December 5-10, 2010

Market Context

North Market Area

4,476 residents

2,697 households

$ 24,189 median HH income

South Market Area

3,453 residents

1,724 households

$36,499 median HH income


December 5-10, 2010

Residential North Market Current & Future

New Household Demand

• 300 to 400 Rental Units (Apartments)

• 450 to 500 For-Sale Units

(Townhouses)

Owner 8%

Renter 92%

Existing Households


December 5-10, 2010

Residential South Market Current & Future

Owner 3%

Renter 97%

New Household Demand

• 950 to 1,140 Rental Units

• 450 to 500 For-Sale Units

Existing Households


December 5-10, 2010

Retail 101

Retail relates to customer spending habits/patterns

• Evaluate the existing supply

• Demographics of resident and daytime population (workers)

• Competitive environment

Total

Retail

Supply

Total

Retail

Demand

Total

Unmet

Retail

- =


December 5-10, 2010

Defining Retail Categories

• Neighborhood Goods & Services


December 5-10, 2010


• Food & Beverage


December 5-10, 2010


• General Apparel, Furnishings & Other Merchandise


December 5-10, 2010

Retailer‟s Needs

• Population

• Density

• Income

Westside

• Population 9,200

• Daytime Population 43,000

• Visitors 400,000


December 5-10, 2010

Retailer‟s Needs

Multiple Sources of Demand

• Westside -not only residents, but daytime workers and

visitors that constitute demand

+ Area Residents

+ Daytime Population

+ Visitors

= Total Demand


December 5-10, 2010

Downtown Baltimore Retail Conditions

• Inner Harbor captures a

percentage of demand

• Shoppers leave downtown

Baltimore for regional shopping

centers in suburbs

– Towson Town Center to

North

– Arundel Mills

– The Mall at Columbia


December 5-10, 2010

Retail Demand – North Market Area, By 2020

North Market Area

6,000 sf Nbhd Goods & Services

4,000 sf Food & Bev

5,000 sf GAFO

• Building on State Center as Catalyst


December 5-10, 2010

Retail Demand – South Market Area By 2020

South Market Area

57,000 sf Nbhd Goods & Services

60,000 sf Food & Beverage

21,000 sf GAFO

• Building on University of Maryland and

other anchor institutions


December 5-10, 2010

Arts Impact on South Area Retail Demand

• Current visitation estimates

350,000 to 400,000 visits annually

• Supports two restaurants/bars with activity

before and after art events

• Impact of increased arts activity

500,000 visits annually

• Increased activity could support one

additional restaurant/bar

• High risk of cannibalizing other city arts areas-

Station North


December 5-10, 2010

Destination Retail – Lexington Market

• Develop a brand and reputation for unique and high quality food items

– Capitalize on the „I shop at “the Market’ instead of the supermarket trend

• Five other markets offer the same option

• Capture the Westside audience and broader community


December 5-10, 2010

Retail Conclusions

•Not about the market alone

•It‟s about the market‟s

environment

•Without clean, safe & well

maintained

•Demand goes from 150,000

square feet to zero


December 5-10, 2010

Market Conclusions

The Best Route Forward:

STEP ONE: Convert the environment and

support existing businesses

STEP TWO: Increase the number of “rooftops”

(a.k.a., people)

STEP THREE: Concentrate the retail district into

an identifiable, prosperous core at the edge of

the university including “ the Market”

STEP FOUR: Encourage university, medical

driven office and R&D development


December 5-10, 2010

Planning, Development, and Design Strategies

Ranne Warner

Developer

Zeckendorf Development

New York, New York

Owen Lang

Consultant

Owen Lang Consulting

Petaluma, California

Ehud Mouchly

Owner

READI, LLC

Los Angeles, California


December 5-10, 2010

Baltimore: Charmed Urban Renewal


December 5-10, 2010

The Westside: A Need for Neighborhood Regeneration


December 5-10, 2010

Identifying the Areas for Regeneration


December 5-10, 2010

Redirecting the Energy


December 5-10, 2010

Observations


December 5-10, 2010

Neighborhood Assets


December 5-10, 2010

Creating the Linkages


December 5-10, 2010

Design Standards


December 5-10, 2010

Financing the Vision – or: “Show Me The Money!!!” (-Jerry Maguire)

• City of Baltimore – a national leader in innovative financing of public-private ventures

• Financing approaches – the “Chinese restaurant menu” metaphor

• The need for a “financial czar”

• The menu

– Area designations promoting area benefits

• Business improvement districts, special assessment districts, empowerment

zones, etc.


December 5-10, 2010

Financing the Vision (cont‟d)

– Sources of funds: cash (equity investment, loans, bonds, credit enhancement,

guarantees)

• Commercial lenders

• Institutional lenders and Institutional investors

• “Socially responsible” / “Double Bottom Line” investors (SRI‟s)

• Private sector Investors

• Private Foundations

• City of Baltimore

• State of Maryland

• Federal (e.g., CDBG)

– Sources of funds – cash equivalents

• Land swaps

• Land contributions – through outright $1 conveyance / non-market rate ground

leasing


December 5-10, 2010


– Tax Credits

• Historic tax credits

• Low income housing tax credits (LIHTC)

• New markets tax credits (NMTC)

– Have NMTC‟s been fully exploited?

– Small developer loan fund

» Acquisition, predevelopment, development funding to assist small

developer

» See example in ULI‟s post-Katrina Forum for Mississippi Gulf

Coast Renaissance Corporation

• General note: Potential need for City gap financing and credit enhancement

• Property tax credits and abatements

– Double edge sword that may impact on City‟s property tax receipts


December 5-10, 2010


– Land / existing structures dispositions and acquisitions

• Tax increment financing (TIF)

• Public sector assemblages and single parcel RFP‟s

• Public sector “One-off” small parcel / existing structure auctions

• Free-market / small parcel acquisitions

– Revenue generating public sector land uses / revenue bonding potential

• Arena

• Lexington Market

• Parking


December 5-10, 2010



December 5-10, 2010

Housing Issues

• Encourage and support home ownership - attached townhomes and stacked flats condos

– Community benefits from increased homeownership

• Incremental higher density absorption inside the Westside boundary

– Corollary danger of cannibalizing from rentals

• Higher community awareness, commitment and civic pride

• Improved community maintenance

• Residents with higher disposable income

• More stable population

– Issue: Baltimore mid-range TH & Condo ownership rates are low

• Except at high-end waterfront units

• Possible causes: High property taxes and HOA fees


December 5-10, 2010

Housing Issues (cont’d) • Employer-assisted housing inside the Westside - recommended constructive intervention by

major employers

– Important tool in attraction and retention of employees – faculty and staff, medical staff

• Opportunities for housing assistance to graduate students and families

– Promoting “green commuting” – walking and bicycling

– Ideas for home ownership “soft” assistance by employers and City

• Down payment assistance

• Employer assisted financing Soft second mortgages

• Faith=based organizations and charities housing assistance

• Support lease-to-own programs / future condo conversions

– Higher construction costs due to condo building standards

– Reduction in price of entry through modified ownership structures

• Homeownership with capped / shared appreciation

– See example in ULI‟s post-Katrina Forum for Mississippi Gulf Coast

Renaissance Corporation


December 5-10, 2010

Housing Issues (cont‟d)

– Employer-assisted homeownership on employer‟s ground leases with shared equity

• Use vacant parcels, adaptive re-use of underutilized parcels / structures

• A business model used successful on campuses of the University of California and

California State University

• Similar model currently being evaluated by Los Angeles County for County

employees

– Community land trust business model: Homeownership with shared appreciation on

community-contributed land.


December 5-10, 2010

Implementation

Tom Murphy

Senior Resident Fellow, ULI/Klingbeil Family

ULI-the Urban Land Institute

Washington, District of Columbia

Stanley Lowe

CEO/President

Pittsburgh Neighborhood Preservation Services

Pittsburgh, Pennsylvania

Betty Massey

Executive Director

Mary Moody Northen Endowment

Galveston, Texas


December 5-10, 2010

Implementation

The Tower of Babel

Cartoon by Educa


December 5-10, 2010

Implementation

MONDAY MORNING AGENDA:

• Public Safety

• Lexington Market

• Redefinition of the role of UMB

• Tension between historic preservation and development, esp. in the

Superblock

• Disposition of BDC properties

• Opportunity to expand the growing vibrancy of the Mount

Vernon/Seton Hill neighborhoods into Howard Street corridor

• Reinvigorating financial institutions’ partnerships


December 5-10, 2010

Implementation

University of Maryland

Lexington Market


December 5-10, 2010

Implementation

Pike Place Market

Seattle, Washington

Fanueil Hall

Boston, Massachusetts


December 5-10, 2010

Implementation

The Pittsburgh Promise

A $100 million Partnership

Each high school senior

graduating from a Pittsburgh

public school that maintains a C

average or above receives a

$20,000 educational

scholarship.


December 5-10, 2010

Implementation


December 5-10, 2010

Implementation

Over-the-Rhine,

Cincinnati, Ohio


December 5-10, 2010

Implementation

Map of city-owned

properties in the

Westside


December 5-10, 2010

Implementation


December 5-10, 2010

Implementation

Georgia Tech Looking up Howard


December 5-10, 2010

Banks Operating in the City of Baltimore

Institution Name Total Assets($000)

1 M&T Bank $ 10.37 billion

2 PNC Bank $ 4.9 billion

3 Wachovia Bank $ 4.38 billion

4 Bank of America $ 3.43 billion

5 BB&T $ 3.15 billion

6 Sun Trust Bank $ 1.9 billion

7 Susquehanna Bank $ 1.1 billion

8 First Mariner Bank $ 1.06 billion

9 Wilmington Trust FSB $ 1.05 billion

10 Columbia Bank $ 898.3 million


December 5-10, 2010

At the End of the Day, it‟s Still

All About:

MONEY $ …


December 5-10, 2010

Source: Citizens Guide to the Fiscal 2011 Budget – City of

Baltimore

Baltimore‟s Operating Budget Expenditures

$1.383 billion


December 5-10, 2010

State-supported, 844,500,000

Non State-Supported, 730,700,000.00

UMD - State and Non-State Revenue Sources

University Budget Expenditures

$1,575,200,000 billion


December 5-10, 2010


December 5-10, 2010

1st Mariner Arena


December 5-10, 2010

Implementation

Discovery Green

Houston, Texas Millennium Park

Chicago, Illinois

CityGarden

St. Louis, Missouri


December 5-10, 2010

Teaching Our Youth to Become Great Entrepreneurs


December 5-10, 2010

Implementation

Once In, All In, Always In: No Exit Strategy


December 5-10, 2010

Conclusion


December 5-10, 2010

Conclusion

December 13:

Time to get to work!

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