Society of Municipal Analysts · • Stapleton Redevelopment Fund • Mayor’s Citizen Advisory...
Transcript of Society of Municipal Analysts · • Stapleton Redevelopment Fund • Mayor’s Citizen Advisory...
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StapletonA case study on how to turn vacant land into a vibrant community
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Stapleton International Airport
1929-1995
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Current Project Status
Over 21,000 residents
3,000 acres developed
Over 6,500 lots sold to residential builders
Over 6,700 homes purchased by residents
Over 1,200 apartments built
400,000 sq. ft. of office space developed
Over 2.2 million sq. ft. flex/industrial space
developed
Over 2.1 million sq. ft. retail developed
Over $800 million of local/regional public
infrastructure built
Over $2.7 billion of Value created
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Stapleton History
Major airport serving
Denver metro area until
the early 1990s
Redevelopment efforts
led by various interest
groups, including:
• Stapleton
Redevelopment Fund
• Mayor’s Citizen Advisory
Board
• Stapleton Development
Corporation
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Planning 1989-1995
Stapleton Development Plan
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The Stapleton Vision
“A network of urban villages,
employment centers and significant
open spaces, all linked by a
commitment to the protection of
natural resources and the
development of human resources.”
- 1995 Stapleton Development Plan
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Stapleton Development PlanSocial Initiatives
Workforce Housing
Parks / Open Space
Education
Sustainability
Technology
Public Art
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Prime Central Location
15 minutes from
Downtown Denver
20 minutes from
DIA
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Stapleton’s Size is Impressive
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4,700 Acres or 7.5 Square Miles
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Stapleton Past
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Stapleton Current
Downtown Denver
STAPLETON REDEVELOPMENT AREA
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Stapleton Development Plan Process
(2000)
Adopted as part of the Denver
Comprehensive Plan in 1996
4000 acres including residential,
commercial, and open space
$5 - $6 billion in private development
over 30 years
$700 million local and regional
infrastructure
Environmental remediation
Demolition
Minimum 15 year build out
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Stapleton Master Developer
1998 SDC selected Forest City (FC) as Master Developer through RFP process
Purchase Agreement (2000) between SDC and FC:
• Contract to purchase 2,935 acres at appraised value of $79.4 million + CPI increase
• System Development Fee – Pay $15,000/acre upon takedown to be used by the District for Trunk Open Space development, totals $44M
• Develop according to the Stapleton Development Plan, SDC places covenants on the land
Development Agreement (2001) between FC and City: uses and densities, affordable housing
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Deal Framework
Forest City will:
Purchase 2,935 acres at appraised value of $79.4 million +
CPI increase
Pay $15,000/acre parks impact fee totaling $44 million
(utilized for regional open space)
Purchase a minimum of 1,000 acres every 5 years for 15
years
Develop according to the Stapleton Development Plan
$5 million down payment
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Deal Framework
City of Denver will:
Complete Zoning for the
entire site
Establish Tax Increment
Financing for Regional
Infrastructure
Create Title 32 Metro
Districts
Complete Environmental
Remediation
Complete Demolition of
Buildings & Runways
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Stapleton Infrastructure
Financing
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Denver Urban Renewal District
(DURA)
City Council approved Stapleton Urban Renewal
Plan and Authorized property and sales tax
increment, 2000
DURA obligations
• Fund “trunk”/regional infrastructure using TIF through City/DURA
Cooperation Agreement and PCMD/DURA Redevelopment
Agreement
• Fund schools using TIF through DURA/DPS School Funding
Agreement
• Pay % of sales tax TIF to City through City/DURA Cooperation
Agreement
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Stapleton Infrastructure
Financing
Tax Increment Financing (TIF)
• Stapleton Urban Renewal Area has TIF for 25 years (2025)
TIF to fund Trunk Infrastructure estimated at $300M,
plus financing costs for approximately $900M in
financing needs
City retains increasing portion of sales tax increment to
fund City services as Stapleton builds out
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Stapleton Infrastructure
Trunk/TIF
Trunk Infrastructure
• REGIONAL key collector or distribution facilities and improvements
- Streets
- Water
- Sanitation
- Safety
- Parks and Recreation
City on County of Denver
• City Projects
• Fire Stations etc.
Denver Public Schools
• New schools for Stapleton and surrounding communities
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Stapleton Infrastructure
Financing
Title 32 Metro Districts
• Provide funding of intract infrastructure through District’s mill
levies (50 mill levy cap)
• Estimated $310M in intract infrastructure plus financing costs for
approximately $1 billion in financing needs
• Park Creek Metropolitan District constructs all infrastructure
(both trunk and intract) using Westerly Creek District tax
revenue, TIF and developer advances
• Complete all infrastructure construction and additional
demolition
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Stapleton Infrastructure
Financing Summary
Sales Tax
3.5% of
Retail Sales
83 Mil Base
Property Tax
55 Mil District
Property Tax
Tax increment Financing (TIF)
For Regional Infrastructure
Title 32 District Financing
For Local Infrastructure
(Commercial Taxed at 3X Residential)
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Stapleton Infrastructure
Financing
System Development Fees
• Forest City pays Park Creek Metropolitan District $15,000/acre
to be used exclusively for Trunk Open Space
• Total SDF anticipated to be $44 million
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Stapleton Infrastructure
Summary
Bonds are issued for both Regional (Trunk) and Local
(In-tract) Infrastructure
If Bonding Capacity not available-Forest City
ADVANCES funds for Trunk & In-tract Infrastructure
Forest City is REIMBURSED for these costs as project
created funds from the TIF and Metro Districts are
available
DEVELOPMENT PAYS ITS OWN WAY
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For-Sale Housing Program
Design Book - Vision
Broad diversity of housing
Multiple residential
product types
Up to 19 homebuilders
Prices from the low
$100,000 to over
$1 million
Lot price 16% - 21% of
projected home value
Required Energy Star 3.0
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Stapleton Design Book
& Builder Selection
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Builder Land Sales Program
Optimize land value by:
Segmentation of plan
Design book
Selection of quality
builders
• 100 interested
• 25 selected to
submit an RFP in
August 2000
• 8 builders selected
(national and local)
Business Deal
• Price participation
• Umbrella marketing program/fee
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Denver’s Residential Context
Traditional Denver
Neighborhood Design
Compact, walkable scale
Diversity of housing types,
densities and prices – no
production Builders then
Tree lined streets -
detached sidewalks
On-street parking
Alley loaded garages
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Parks & Open Space
1,116 acres Regional Parks
and Open Space
Additional 109 acres in local
parks and town squares
Increases Denver Park
System by more than 30%
Bike & Walking Trails to
reduce need for auto
Funded via $15,000 per/acre
Impact Fee & TIF
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Regional Parks & Open Space
1,116 acres
• Central Park
• Linear Greenways
• Sand and Westerly Creeks
• Prairie Park
• Bluff Lake Nature Center
• Fred Thomas Park
• Urban Farm at Stapleton
Adjacent to 17,000-acre
Rocky Mountain Arsenal
National Wildlife Refuge
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Lessons Learned…Developer’s
Perspective
Contracts are subject to constant interpretation and re-interpretation
Redevelopment is a springboard for innovative planning and sustainable development practices
Infrastructure construction is expensive, both long and short term.
Maintaining long-term relationships among all of the players is critical.
Financial modeling on 25 year project will not be 100% accurate
Market drives all development
Flexible financing
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Lessons Learned
For Sale Affordable Housing
Stapleton Affordable Housing Plan
10% of for sale units at 80% AMI
20 % of for rent units at 60% AMI
Method of Delivery: Partner with
homebuilder, donate land and
additional subsidy
Homebuilder brings construction ,
marketing, and sales expertise
Affordability is maintained with a 15
year deed restriction capping price
appreciation to percentage of CPI
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Lessons Learned
Park Space
Operation &
maintenance planning
for open space
Disconnects grid
Multiple Roles of
open space
Single loaded streets
create additional
value
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Lessons Learned
Expectation Setting
Careful creation of a
Master Community
Association
Disclaimers don’t
matter
Be careful with your
signage
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Land Use Map (1.10.15)
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DevelopmentProgress Map
(1.10.15)
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