North Loop Technical Assistance Panel · 2019-05-14 · Jim DeLisle, University of...
Transcript of North Loop Technical Assistance Panel · 2019-05-14 · Jim DeLisle, University of...
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North Loop Technical Assistance Panel
Panel Recommendations
January 14, 2016
Photo here
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Thank you
Cindy McSherry, ULI Chicago
Diane Burnette, MainCor & ULI Kansas City
Chair of Mission Advancement
Joy Crimmins, ULI Kansas City
Macy Laney, student, UMKC
Kansas City Design Center for providing
meeting facilities
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The mission of the ULI is to provide
leadership in the responsible use of land and
in creating and sustaining thriving
communities worldwide.
ULI Mission Statement
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Technical Assistance Panel
• Objective, multidisciplinary advice on land
use and real estate issues developed over
the course of two days
• ULI Kansas City members from across the
region volunteer their time to participate as
panelists
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Genesis of the Panel
Conversations among the Kansas City
leadership and MODOT regarding
Amendment 7, opened the door for
further discussions of decommissioning
Northloop, rebuilding the Broadway
Bridge, and land use opportunities made
available via this decommissioning.
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Panel’s Charge
What land uses/development should be
recommended if the Northloop is
decommissioned and the Northloop land
become available for redevelopment?
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TAP Panel Members
Panel Co-Chairs
David Brain
John McGurk, Polsinelli PCPanel Members
Jim DeLisle, University of Missouri–Kansas City
Bob Langenkamp, KC EDC
Gib Kerr, Cushman & Wakefield
Jack Messer, City of Overland Park, KS
Dan Musser, Newmark Grubb Zimmer
Sean Simms , SKS Studio
Ashley Sadowski, Momenta
Matt Webster, Ameritas Investment Corp
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Briefing documents
Stakeholder interviews
Full day of team discussions
Process
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Stakeholder Meetings
Kansas City Leadership –
Mayor James, Rick Usher
City Planners
Parks & Recreation
MODOT
Port Authority
Downtown Council
KC Street Car
Real estate developers
Neighborhood Leadership
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Study Area
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Scale Examples
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Themes, Reconnecting the Grid
Retain and
Restore the grid
for vehicular,
pedestrian and
bicycle use
(including
neighborhoods
such as Columbus
Park, etc.)
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Regardless of Use
Connect Independence Avenue and
taking care of the traffic east to west
Connect 6th Street to Admiral
Themes, Connectivity
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Themes, Pedestrian Access
Take Heart of America down to grade
(which will help connect Columbus Park)
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Themes, Open Spaces
Pocket Parks and Plazas
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Themes, Open Spaces
Gathering Spaces meet landscape
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Themes, Mixed Use
Gathering Spaces meet landscape
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GDAP Goals
Create a walkable downtown
Double the population downtown
Increase employment downtown
Retain and promote safe, authentic
neighborhoods
Promote sustainability
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Assumptions
Will be decommissioned
Traffic will be rerouted
Broadway Bridge realigned
Scope focused on study area
No acquisition costs land to city
Excavated parking – 2-3 stories
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Market Trends/Potential
+/- 90 acres of land in TDD
+/- 5 acres/yr annual absorption
+/- 10 Years to site delivery
Parking – 2.5 spaces/1000 sf
Office – floorplates 25,000-35,000 sf
Retail – small box retail (City Target)
Residential – high-rise residential ($2.50/sf)
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Context
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Context
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Options Considered
Big Bang
Evolution
Back to Nature
Take me out to the Ball Game
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Big Bang – Hold entire site
Evolution – Series of development
opportunities
Evaluation of Options
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Big Bang, Pros
National scale
Replace riverfront
Central location
Game changer
Transition plan between CBD and River
Market
Supports transit investment
Increase density
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Big Bang, Cons
Requires patience, political will
Long, uncertain return period
Larger-scale upfront cost
Avoid blight and negative impact
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Big Bang, Phasing/Implementation
Site prep
– Demo
– Utilities
– Entitlements/Plan
Interim Use – Community Attachment
Maintenance
National RFP/Marketing
Restore grid elements up front?
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Evolution, Pros
Less up-front cost, lower holding costs
Quicker returns
Better mixed use potential
More master planning
Multiple visions
Local flavor
Reduced market disruption
More control
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Evolution, Cons
More coordination, negotiation
Perception of loss of big opportunity
Relocations within market vs. additions
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Evolution, Phasing/Implementation
Multiple RFP
City prioritizing phasing
Site prep and maintenance
Establish planning controls up front
Establish financial framework/approach
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Architectural Design
Amazon Headquarters
South Lake Union, Seattle
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Architectural Design
Uber Headquarters
Downtown San Francisco
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Master Plan
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Typical Block Density
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Design
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Design
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Development Template
– SCENARIO #1: Single user “Big Bang Development” on 32 acres: corporate campus or similar
– SCENARIO #2: “Evolution Development” of individual blocks for mixed, multifamily or office use
Tax Increment Financing & Land Sales Pays for Infrastructure
Financing Discussion
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Private– Private developer pays for ground
Assumption for land cost $75 per sq. ft.
Total site size: 1.39MM sq. ft. (32 acres)
– Mortgage financing and equity for private development
Public Financing– Nominal carry costs for property while under public
ownership
– TIF pays for differential costs related to infrastructure (parking, roads and streetscape)
Financing Discussion – Capital Stack
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Overview– Office Development Square Ft.: 3,000,000
– Total Employee Count: 12,750
– Multifamily Development: 1,050 units
– Parking Required: 7,200 spaces
– Retail: 100,000 sq. ft. with $25mm sales
– Plaza, Outdoor Space 348,000 sq. ft.
Public Funding Available– Land Sales Proceeds: $78,000.000
– PV of TIF: $186,000,000
Use of Public Funding– Parking: $180,000,000
Spaces 7,200 stalls
Cost/Space $25,000 per stall
– Streetscape
For seven blocks $7,000,000
– Road connections: Independence Ave.,
6th St. and Heart of America $ 25,000,000
– Unallocated $ 52,000,000
Scenario 1: “Big Bang” Financing
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Scenario 2: Evolution Financing –
Single Block (4.8 acres)
Overview– Office Development Square Ft.: 220,000
– Total Employee Count: 935
– Multifamily Development: 174 units
– Parking Required: 818 spaces
– Retail: 34,500 sq. ft. with $7.3mm sales
Public Funding Available– Land Sales Proceeds: $15.6MM
– PV of TIF: $16.1MM
Use of Public Funding– Parking: $20.4MM
Spaces 818 stalls
Cost/Space $25,000 per stall
– Streetscape
For seven blocks $1 MM
– Road connections $10.4 MM
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Standard incentives, in this case TIF, allow for funding of differential development costs
Funding differential infrastructure costs of urban development will likely be required to attract development
Funding differential costs of urban development is a well tested template for Kansas City CBD development
Financing Conclusions
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Recommendations
To the extent possible – approach in
manner that preserves both alternatives
Pursue common elements
Evaluate actual market at time it becomes
available
City should examine the elements to
determine which roles it wants to play
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Summary
Attractive “Game-Changer” site
Attractive community benefits
Aggressive absorption assumption
– Best execution is with user(s) new to
market
Modest density assumption still
financially feasible
Encourage opportunity formation and
pursue “Dual Option” strategy
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Kansas City North Loop
Technical Assistance Panel
Presentation
Panel Recommendations
January 14, 2016