PHASED WORK PLAN. 1. Data Collection. 2. Collaboration and Analysis. 3. Plans and Recommendations
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- Adelia Rosanna McDonald
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2 TODAY S AGENDA Welcome and Introductions Project Overview and Preliminary Observations Retail Merchandising Economic Development Incentives Questions and Answers
3 PHASED WORK PLAN 1. Data Collection 2. Collaboration and Analysis Client kickoff and Site tours Review baseline conditions Advisory Committee Kickoff Analysis and Market Assessment and Economic Development Incentive 3. Plans and Recommendations Deliverable- Downtown Port Arthur Revitalization Plan Project Initiation and Information Gathering
4 SCHEDULE
5 DOWNTOWN PLAN PROJECT WEBSITE
6 PRELIMINARY OBSERVATIONS
7 P HYSICAL A SSESSMENT
8 PHYSICAL ASSESSMENT
9 PHYSICAL ASSESSMENT
10 PRELIMINARY OBSERVATIONS Issue and Opportunities Amount of vacant residential infill sites Town and gown Lamar State College Highest and best uses Market realities Pieces are out there, bring it all together Entertainment/activity? Need to create PLACE with support uses Streetscape remain key Set up framework for connections and development
11 EMERGING ISSUES FACING DOWNTOWN Positioning Downtown To Address Demographic Changes 80,000 Question: How can downtown help Port Arthur to attract its fair share of population growth? 70,000 60,000 50,000 40,000 30,000 20,000 10,000 7,663 22,251 50,902 46,140 57,530 66,676 57,371 61,251 58,724 57,755 53,818 Historic Population Growth
12 EMERGING ISSUES FACING DOWNTOWN Helping the People of Port Arthur Be Successful Question: What Downtown programs and amenities can promote education and arts to help the greater Port Arthur community?
13 EMERGING ISSUES FACING DOWNTOWN Housing Choices that Appeal to All Stages of Life Question: What types of housing and services can strength Downtown s appeal? Households With Children 23% Multiple Adults, Non Children 47% 15.2% Multifamily Single Person Households 30% 84.7% Single- Family
14 EMERGING ISSUES FACING DOWNTOWN Existing Neighborhoods and Limited Residential Mass Question: What are the best strategies to create thriving neighborhoods adjacent to downtown?
15 EMERGING ISSUES FACING DOWNTOWN Limited Activity, Visitors and Taking Advantage of Surrounding Employment Question: What new restaurant, retail, events and services can be provided? How to attract area employees?
16 EMERGING ISSUES FACING DOWNTOWN Enhancing Downtown s Perceptions and Identity Through Community Character Question: What design elements will help Downtown in the future?
17 EMERGING ISSUES FACING DOWNTOWN Capitalizing on Market Potential Question: What incentives and partnerships can Port Arthur provide to create new development?
18 EMERGING ISSUES FACING DOWNTOWN Fostering a Deeper Relationship with Lamar State College Question: What amenities and land uses can better support student and facility needs?
19 EMERGING ISSUES FACING DOWNTOWN Imaging Change to Underutilized Places, Property Conditions, Uninspired Spaces and Abandoned Buildings Question: How are we going to fill vacancies? What new public spaces will help development infill?
20 EMERGING ISSUES FACING DOWNTOWN Making the Most of the Waterfront Question: How can downtown promote and take better advantage of its waterfront?
21 RETAIL MERCHANDISING
22 G OALS OF P ORT A RTHUR D OWNTOWN R EVITALIZATION P ROJECT Regional Retail Context Current Conditions Regional Opportunity Interventions to catalyze downtown Public/Private cooperation Next Steps
23 IMPLEMENTATION PLAN OUTLINE Framework based on market findings, SWOT, interviews, and retail dashboard Concept- Outline of retail strategy that is economic and market sensitive. Implementation Strategies Retail Tenant Identification Potential Performance Measures Immediate Next Steps/ Action Plan Implementation
24 DETERMINING THE RETAIL FOOTPRINT
25 PORT ARTHUR TRADE AREA
26 PORT ARTHUR DRIVE TIME PTA
27 PORT ARTHUR 7 MILE RING PTA
28 PORT ARTHUR WALMART PTA
29 PORT ARTHUR TARGET PTA
30 P ORT A RTHUR SHOPS AT P ORT A RTHUR PTA
31 PORT ARTHUR LOWES PTA
32 PORT ARTHUR HEB COMPARISON
33 PORT ARTHUR CENTRAL MALL PTA
34 PORT ARTHUR & GROVES COMPARISON
35 PORT ARTHUR & PORT NECHES COMPARISON
36 PORT ARTHUR & BEAUMOUNT COMPARISON
37 AUTOMOTIVE SERVICES
38 N ATIONAL F AST F OOD
39 HOTELS
40 HAIRCUTTERS
41 N AIL S ALONS
42 M EXICAN R ESTAURANTS
43 AUTOMOTIVE RETAILERS
44 B ANKS
45 C HECK C ASHING
46 MAJOR RETAIL DISTRIBUTION
47 PORT ARTHUR MAJOR EMPLOYERS
48 HOUSEHOLD INCOME (BY BLOCK GROUP)
49 POPULATION DENSITY (BY BLOCK GROUP)
50 DEMAND BAND MAP
51 DEMAND BY RANGE Category 0-3 Miles 3-5 Miles 5-10 Miles Total (SF) Auto Parts, Accessories & Tire Stores - 1, ,661 Furniture Stores 3,798 3, ,681 Home Furnishings Stores Electronics & Appliance Stores 3, ,596 Bldg Material & Supplies Dealers 5,076 1, ,302 Lawn & Garden Equip & Supply Stores 1, ,221 Grocery Stores 1,605-6,448 8,053 Specialty Food Stores Beer, Wine & Liquor Stores Health & Personal Care Stores Gasoline Stations - - 1,463 1,463 Clothing Stores 12, ,263 16,577 Shoe Stores Jewelry, Luggage & Leather Goods Stores 1, ,494 Sporting Goods/Hobby/Musical Instr Stores 1, ,536 Book, Periodical & Music Stores Department Stores Excluding Leased Depts. 4, ,709 Other General Merchandise Stores 25,213-4,643 29,856 Florists Office Supplies, Stationery & Gift Stores Used Merchandise Stores ,757 Other Miscellaneous Store Retailers 4,123 2, ,399 Full-Service Restaurants - - 1,331 1,331 Limited-Service Eating Places 6, ,928 Special Food Services Drinking Places - Alcoholic Beverages 1, ,970 Total Demand (SF) 75,204 12,909 22, ,641
52 P ORT A RTHUR R ETAIL D EMAND S TORE F ORECAST Category 2013 Demand (Retail Gap) Avg Sales/SF 2013 SF Area 2013 SF Demand Average Store Size # 2013 Stores Automobile Dealers 128,311, ,138 21,138 16,000 1 Other Motor Vehicle Dealers 7,936, ,298 8,298 5, Auto Parts, Accessories & Tire Stores 12,099,300 5,120 5,120 16,000 0 Furniture Stores 10,283, ,537 16,537 12,000 1 Home Furnishings Stores 6,780, (12,412) (12,412) 8,000 - Electronics & Appliance Stores 21,751, (29,253) (29,253) 1,200 - Bldg Material & Supplies Dealers 21,731, ,549 11,549 20,000 0 Lawn & Garden Equip & Supply Stores 3,191, (4,423) (4,423) 10,000 - Grocery Stores 128,224, (214,253) (214,253) 55,000 - Specialty Food Stores 3,880, (1,171) (1,171) 3,000 - Beer, Wine & Liquor Stores 5,529, (11,047) (11,047) 4,000 - Health & Personal Care Stores 59,532, (257,885) (257,885) 1,800 - Gasoline Stations 91,959, (324,804) (324,804) 5,000 - Clothing Stores 32,738, ,555 43,555 2, Shoe Stores 5,598, (50,846) (50,846) Jewelry, Luggage & Leather Goods Stores 6,402, (7,386) (7,386) Sporting Goods/Hobby/Musical Instr Stores 14,559, (925) (925) 4,000 - Book, Periodical & Music Stores 4,681, ,837 2,837 7,500 0 Department Stores Excluding Leased Depts. 48,352, (342,507) (342,507) 20,000 - Other General Merchandise Stores 88,259, , ,326 32,000 2 Florists 929, (4,977) (4,977) 1,000 - Office Supplies, Stationery & Gift Stores 4,789, (1,610) (1,610) 15,000 - Used Merchandise Stores 4,058, ,732 14,732 2,000 4 Other Miscellaneous Store Retailers 11,327, ,973 16,973 2,500 3 Full-Service Restaurants 31,762, (14,551) (14,551) 5,500 - Limited-Service Eating Places 41,760, (92,071) (92,071) 4,000 - Special Food Services 2,252, ,585 2,585 2,000 1 Drinking Places - Alcoholic Beverages 5,260, ,362 7,362 5, ,138 24
53 ECONOMIC DEVELOPMENT INCENTIVES
54 E CONOMIC D EVELOPMENT I NCENTIVES: THE R ATIONALE So Why Provide Incentives*? To deflate perceptions of project risk assumed by the business or developer To facilitate a retailer s or developer s projection of financial feasibility this should not be confused with a guarantee of financial success *This presentation does not constitute the provision of legal advice and is provided for planning purposes only.
55 T OP F ACTORS I NHIBITING R ETAILER S ITE S ELECTION D ECISIONS IN I NNER-CITY M ARKETS ICSC Survey of National Retailers: Crime/perceived crime* Insufficient concentration of the retailer s target customer* (income density) Lack of consumer purchasing power for the retailer s product (income density) Potential shrinkage Rent* Buildout/rehabilitation costs* *Factors which can be partly mitigated by economic development incentives
56 C HAPTER 380 B ROAD P OWERS FOR E CONOMIC D EVELOPMENT 10/30/08 Presentation to the Texas Municipal League Annual Conference: The most underutilized and overlooked economic development incentive available to local government in Texas is Chapter 380 of the Texas Local Government Code, which provides express statutory authority for municipalities to provide economic incentives consisting of loans and grants of city funds, use of city personnel, facilities and services with or without charge for economic development. [Emphases added] Peter G. Smith, Managing Partner at Nichols, Jackson, Dillard, Hager & Smith L.L.P. of Dallas, TX
57 C HAPTER 380 ELEMENTS S UBJECT TO M UNICIPAL C ONTROL Types of Possible City Assistance: Grants e.g., Port Arthur Target Stores & Hobby Lobby deals or infrastructure improvements Loans Provision of city personnel Provision of city services e.g., enhanced police protection for a destination restaurant or retail district Sale of city-owned land in the TIRZ at less than fair market value Leases for city-owned land via Ch. 380
58 C HAPTER 380 ELEMENTS S UBJECT TO M UNICIPAL C ONTROL Limitations Which Can Be Incorporated: Duration of the incentive e.g., 10 yrs., 20yrs., etc. Project eligibility criteria e.g., minimum threshold for project investment Maximum amount or dollar limit of the incentive e.g., $2mm or 20% of total project costs Capture percentage of sales tax rebate e.g., 50% or 75% But for requirements
59 C HAPTER 380 ELEMENTS S UBJECT TO M UNICIPAL C ONTROL What Business Sectors Should Be Targeted or Prioritized for Incentives? Destination restaurant operators? Developers of workforce housing be careful of 10% TIRZ cap (Coordinate with F&N Tasks 7, 8 and 17) Convenience good retailers? (F&N Task 8) Urban farm or hydroponic farm operators supply chain ideas? (F&N Tasks 7, 14 & 17) Farmers market? (F&N Tasks 7 & 17) Businesses in the logistics & energy sectors?
60 H OW C AN W E D EPLOY C HAP. 380 INCENTIVES? Attack & Mitigate Project Development Costs: Construction of roads, sewers, site improvements or other infrastructure improvements Sale or lease of city-owned land on economically-favorable terms Construction of building improvements Waiver or reduction of building permit fees or other fees related to development
61 H OW C AN W E D EPLOY C HAP. 380 INCENTIVES? Subsidizing (Temporarily) Project Operating Costs or Revenues: Using master lease agreements to stabilize project lease-up Provide city personnel or services to support business operations, e.g., enhanced police protection for a destination restaurant Funding the costs of billboards, advertising, promotion & marketing campaigns to reach a retailer s target market
62 O THER T OOLS IN THE E CONOMIC D EVELOPMENT T OOLBOX Chap. 311 TIF reinvestment zone, i.e., the 2012 TIRZ (372 acres) Chap. 312 tax abatement agreements Chap. 375 municipal management districts Chap. 372 public improvement districts Leverage externally-funded resources: Community Development Block Grants New Market Tax Credits EB-5 financing
63 M OVING TOWARDS A F ORMAL INCENTIVE STRATEGY Preliminary Conclusions: Adapt incentives to the key locational factors of retailers crime, income density, rent, etc. Exploit the totality of tools available under Chap. 380 not just sales tax rebates & leverage them with other incentives Use food as a catalyst for jump-starting economic development in the district urban farming, farmers market, dining, etc.
64 Next Steps THANK YOU! Draft goals based on input Next meeting: Charrette (Tentative October 2014) Prepare preliminary strategies
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