Kirkland Downtown 101PDFs/... · Real Estate, 2007: Coastal Metro Areas Apartments, office—...

Lessons for a HealthyDowntown Kirkland

Kirkland Downtown Advisory CommitteeJuly 26, 2007

LELAND CONSULTING GROUP

Kirkland DACLELAND CONSULTING GROUP

LCG Downtown ExperienceAlbuquerque, New Mexico Albuquerque, New Mexico Astoria, OregonAstoria, Oregon

Auburn, WashingtonAuburn, Washington Aurora, ColoradoAurora, Colorado Beaverton, OregonBeaverton, OregonBellingham, Washington Bellingham, Washington Bend, OregonBend, Oregon Billings, MontanaBillings, Montana Boise, IdahoBoise, Idaho

Charlotte, North CarolinaCharlotte, North Carolina Colorado Springs, ColoradoColorado Springs, ColoradoCorpus Christi, Texas Corpus Christi, Texas Dearborn, MichiganDearborn, Michigan Denver, ColoradoDenver, Colorado

Des Moines, IowaDes Moines, Iowa Englewood, ColoradoEnglewood, Colorado Eugene, OregonEugene, OregonFlorence, OregonFlorence, Oregon Fort Worth, TexasFort Worth, Texas Hillsboro, OregonHillsboro, Oregon

Kirkland, WashingtonKirkland, Washington Klamath Falls, OregonKlamath Falls, OregonLake Oswego, OregonLake Oswego, Oregon Lexington, KentuckyLexington, Kentucky Lewiston, IdahoLewiston, Idaho

Lincoln, NebraskaLincoln, Nebraska Lincoln City, Oregon Lincoln City, Oregon Madras, OregonMadras, Oregon Medford, OregonMedford, OregonMidland, TexasMidland, Texas Milwaukie, OregonMilwaukie, Oregon Missoula, MontanaMissoula, Montana

Montrose, Colorado Montrose, Colorado North Richland Hills, TexasNorth Richland Hills, Texas Oregon City, Oregon Oregon City, Oregon OtayOtay Mesa, California Mesa, California Palm Springs, CaliforniaPalm Springs, California Portland, OregonPortland, Oregon

Pueblo, ColoradoPueblo, Colorado Racine, Wisconsin Racine, Wisconsin Salem, OregonSalem, Oregon San Diego, CaliforniaSan Diego, CaliforniaSanta Fe, New MexicoSanta Fe, New Mexico Santa Paula, CaliforniaSanta Paula, California Seattle, WashingtonSeattle, Washington

ShiprockShiprock, New Mexico, New Mexico Shoreline, Washington Shoreline, Washington Snowmass Village, ColoradoSnowmass Village, ColoradoSpokane, WashingtonSpokane, Washington Steamboat Springs, ColoradoSteamboat Springs, Colorado

Stockton, CaliforniaStockton, California Tacoma, Washington Tacoma, Washington Tualatin, OregonTualatin, OregonUniversity Place, Washington University Place, Washington Vail, Colorado Vail, Colorado West Jordan, UtahWest Jordan, Utah


Focus of the PresentationWhy Plan Downtown?Downtown TrendsIngredients for successTools and Tactics


Why Plan for Downtown?

Cities are defined by the Public RealmCirculation, Open Space, and Public Buildings help define private opportunityDowntowns are the most complex part of a city

Downtown Trends

RetailResidential

EmploymentDemographics


Retail TrendsLuxury goods are small share of total retail sales70% of retail sales in America are made after 5:30 and on weekendsEarly closing stores in downtowns strugglePlace Making: In downtown and at suburban lifestyle centersRetail is constantly changing


Residential TrendsUrban housing resurgenceHousehold sizes are shrinkingMore people work from homeUrban housing needs:

Inviting environmentVariety of productSupporting services


Residential TrendsEmerging Trends in Real Estate, 2007:

Coastal Metro AreasApartments, office—strong Infill, urban locations, and transit stations

Urban and suburban apartments are hottest of all development types

- Integra Realty Resources, 2007


Household Composition

Household Type Portland Seattle Boise Spokane Kirkland

One-person 34.6% 40.8% 30.0% 33.9%

32.0%

65.9%

34.1%

100%

35.6%

Two-person 33.3% 33.8% 34.4% 36.4%

Subtotal 67.9% 74.6% 64.4% 72.0%

Three or more 32.5% 25.4% 35.6% 28.0%

Total 100% 100% 100% 100%Source: U.S. Census Bureau and Leland Consulting Group

Select Western Cities (2000)


Just over 20 percent of America is now “Dad, mom, and two kids”

Non-traditional households are the majority

Marrying later and deferring childbirth—define themselves through live-work-shop

Rich ethnic mixKey urban housing markets:

Generation X – up and coming, seek urban excitementBaby Boomers – free, affluent, and downsizing

The ‘Typical’ Household


Office and Employment TrendsTechnology and Services Small firmsBright young workersSeek urban places18-hour activityMixed-use environmentsSocial interaction


Downtown Land Use Rules of Thumb

HousingLower parking ratiosSupports more retail $$Activates weekends/ evenings

OfficeHigher parking ratiosOnly 9-5, M-FMore cyclical

ButBut……

•• Rules are made to be brokenRules are made to be broken

•• Too much of a good thing isToo much of a good thing is……

•• Kirkland may be an exceptionKirkland may be an exception

What Makes a Successful

Downtown?


Place Making“The process of identifying and revitalizing

underutilized public and private spaces that result in the fundamental transformation of community.”

Through superior public realm design, overcome hesitation and resistance to private sector investment.


Attributes of a Healthy Downtown -Physical

Compact urban formPedestrian amenitiesSecure environmentAttractive housingClass A office spaceHotels Civic and cultural usesEntertainment Historical connection

Parking and transit access


Attributes of a Healthy Downtown –Financial

High retail salesDiversified tax baseHigh occupancyRelatively high commercial rentsRange of funding tools

LID/BIDParkingSales TaxesHotel/Motel TaxesProperty Taxes


Attributes of a Healthy Downtown –Organizational

An effective downtown organization

Marketing Management AdvocacyEventsEducation

Arts & cultureCity agencies

Public and private leadership

Many plans don’t get built—

Why?

Universal ProblemsBarriers

Challenges


Universal Downtown Problems1. Attracting new development2. Attracting people downtown evenings / weekends3. Competition from

discount stores and/or suburban malls

4. Vacant/underused retail space

5. Parking6. Shortage of suitable

housing

in priority order

Source: International Downtown Development Association with LCG


Universal Downtown Problemsin priority order

7. Image8. Vacant/underused

office space9. Preservation of older

buildings10. Unattractive building

façades11. Crime (real or perceived)12. Traffic circulation/congestion

Source: International Downtown Development Association with LCG


Barriers get in the WayMarketPhysicalFinancialRegulatoryPolitical


Market BarriersEconomySeasonalityLack of precedent for project componentsAppraisal challengesOvercoming fears of pioneering

Weak visual exposureLack of critical mass


Physical BarriersLack of pedestrian friendly amenitiesLack of public realm elementsIncompatible land usesShape / size of areaLack of parkingWaterfront orientation


Financial BarriersInadequate public funds for planning, property acquisition, programs, and start upHigh development costsInfrastructure costsPerceived risks investmentLow rents


Regulatory BarriersInappropriate codes and zoningRestrictive heights, uses, stacking, etc.Inflexible code administrators—regulatory overkill Overly prescriptive design standardsOnerous permitting process –time is money!Discretionary process vs. developer certainty


Political BarriersLack of revitalization experienceLack of true championsMissing implementation strategyNot enough communication

Political resistanceIncomplete internal consensusMissing public-public partnerships Private sector and media support is underdeveloped


Downtown Development Challenges

More complicatedHigher land costsRegulation & reviewStrong public opinionHigher parking costsConstruction stagingNeed to overcome these barriers through joint development

Tools and Tacticsto Sustain Success

‘Getting Ready’Implementation Principles


Don’t Let Planning be an Incomplete Thought

Do not plan for downtown aloneUnderstand the larger community contextDowntowns must integrate with other goals:

HousingJobsTransportationParksArts


How to do it? Getting to Implementation1. Have a Great Strategy2. Many, Many Projects3. Committed, ongoing Leadership4. Supportive Government5. Public-Private Partnerships6. Ongoing Review


Have a Great Strategy

Combine market potential with community visionGo far beyond patching problems or reacting to specific issuesInspire greatnessAuthenticity


Many, Many ProjectsA great plan moves many projects forwardProjects are broadly defined:

Public and private BuildingsInfrastructureMarketing EventsOpen spaces

Think small


Committed, Ongoing Leadership

Leaders desire success for the entire communityAble to motivate and organize stakeholdersGreat leadership = great projectsNo leadership = failed projects


Supportive GovernmentProvide support for achieving standards –consultation, code enforcement, and assistanceAble to review its practices and identify and change policiesSet clear goalsChampion implementation


Provide IncentivesTax abatementSDC policy refinementTax creditsLocal Improvement DistrictsRezoningLending poolsMarketing assistanceExpedited permitting

EducationPut out the welcome mat

Public-Private Partnerships

The most important tool in the shed


Private Investment Follows Public Commitment

Prepare infrastructure and amenities in advanceDevelopers want long-term certaintySet the bar for quality


Nurture Public-Private Partnerships

Most implementation is done by private sectorTypes of partnerships:

Development agreementsDevelopment RFQ/RFPDirect & indirect subsidy

Seek leverageProvide public amenities


Nurture Public-Public Partnerships

Build public partnerships for implementationLocal, Regional, State, and Federal

Kirkland should not do it alone


Lessons Learned Community

Goals

Successful Project

Public Private Partnership

Developer Experience

Financial Capability

Design Excellence


Ongoing ReviewPlans are living documentsChange is constant

MarketsEconomyResidentsLandscapeVision

A downtown is never “finished”


Bottom Line

Downtowns are complexTrends are positiveSuccessful downtowns have

Leadership and champions Public-private partnerships Good communicationMany projects at once

The process is never done…


LELAND CONSULTING GROUPUrban Strategists

www.lelandconsulting.com

Portland • Denver • Boston • San Angelo • New York • Mexico

Kirkland Downtown 101PDFs/... · Real Estate, 2007: Coastal Metro Areas Apartments, office—...

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