Maryland Park Lake District

Transcription

1 Maryland Park Lake District A REGIONAL DEVELOPMENT OPPORTUNITY City of Maryland Heights

2 Area Context 2,535 Acres northwest of MO RT 364 (Page Ave Extension) Protected by a 500-Year COE/FEMA-certified levee MO Route 141 (Maryland Heights Expressway) runs through the center Creve Coeur Park and Lake border to the southeast Riverport Business Park and Hollywood Casino border on the north Includes Creve Coeur Airport

3 Area Context

4 Area Context Earth City Business Park Hollywood Casino & Hotel Riverport Business Park St. Louis Lambert International Airport Hollywood Casino Amphitheater Creve Coeur Airport Creve Coeur Lake & Park

5 Why Promote Lake District Development? Represents a unique opportunity for the Region Ability to provide a mix of uses and experiences focused on hospitality and entertainment Capitalize on attractions already in place Widen the attraction of the area beyond the region Enhance and reinforce open space Focus on green, sustainable development patterns & techniques

6 Need for Public Financing Tools Some might say Why do we need more public investment? There s a 500-year certified levee, a $50 Million highway up the middle, nearby recreation amenities, an interstate spur highway on the southern border, lots of land Because: Lack of stormwater infrastructure No internal access roadway or utility infrastructure Infrastructure cost is greater than can be financed by the property owners and the City Real estate development can t absorb these costs and compete with other parts of the region

7 Need for Public Financing Tools Stormwater costs determined to date for the area are $30 million Costs not yet identified for needed stormwater control projects could easily add another $30 million Conservative and very preliminary cost estimates for roadway and non-stormwater utilities are $80 million This equals $140 million in costs before any land can be sold for development

8 Need for Public Financing Tools If 50% of the Area acreage can be developed after infrastructure is built and another 25 to 30% is devoted to zoning requirements (setbacks, easements, etc.), these costs could add $3.38 per square foot to development costs This figure would equal or exceed the asking price for development sites in the region without the added cost of the land The financing impediment is also related to the amount of infrastructure that would have to be constructed in order for development to start

9 The Earth City Example

10 The Earth City Example Initial area about 1,500 acres (about 2,700 with northern expansion (Corporate Woods) Expensive upfront costs (500-year levee, interchange w/ I-70, large internal stormwater drainage facilities, pumping stations, internal roadways and utilities) No public funds were made available Pace of development was strong but not enough to keep up with infrastructure financing costs

11 The Earth City Example Initial costs were driven up by inflation since legal challenges by environmental groups (ultimately overturned by the courts) stalled the project for more than 5 years A recession also slowed development Developer (Linclay) went bankrupt, but the project was saved by a deep-pocket financing entity (Ford Motor Credit) Build out took approximately 30 years Real estate experts at the time projected 20 years

12 The Earth City Example Had today s public financing tools been available the anticipated build out might have been realized and produced the economic benefit to the County and region earlier Today the current market value (per the St. Louis County Assessor) of Earth City and its later northern expansion is about $918 million According to the Census and ESRI, employment today is about 24,000

13 Why Promote Lake District Development? St. Louis County population has been declining According to the US Census: St. Louis County has the highest number of commuters coming from another county 236,344 workers live outside the County 139,222 County residents leave the County for work In 2011, 84.0 percent of workers in St. Louis County drove to work alone, compared with 76.4 percent nationally These commuting patterns fueled by regional sprawl contribute to the region s air quality and traffic issues

14 Why Promote Lake District Development? St. Louis County is largely built out The County and its municipalities have placed significant emphasis on revitalizing and redeveloping aging and obsolete areas of the built environment, but The areas where significant new development could occur are extremely limited by a variety of conditions: Unprotected floodplain areas Areas with significant topographic challenges Large areas of karst soil conditions unsuitable for development

15 Why Promote Lake District Development?

16 Public Financing Requirements Nearly all public financing tools that can assist the financing for the level of infrastructure needed require that certain conditions be present These are the blighted area criteria under various Missouri statutes Defective or Inadequate Street Layout; Insanitary and Unsafe Conditions; Improper Subdivision or Obsolete Platting; and Existence of Conditions Which Endanger Life or Property by Fire and Other Causes, or The existence of conditions which endanger life or property by fire and other causes, or any combination of such factors, retards the provision of housing accommodations or constitutes an economic or social liability or a menace to the public health, safety, morals, or welfare in its present condition and use

17 Lake District Qualifications Parcels Impacted by Lack of Access to Public Rights-of-Way

18 Lake District Qualifications Improper Subdivision or Obsolete Platting

19 Lake District Qualifications Flood Hazard

20 Lake District Qualifications Economic Underutilization and Liability Current area land uses represent economic underutilization

21 Lake District Qualifications Economic Underutilization and Liability 2017 EAV shows the value of the Area declined by 15.9% over 2016 values Assessments have declined every reassessment year after 2006 Comparison to other similar areas shows the extent to which the lack of development in the Lake District represents economic underutilization and an economic liability to all applicable taxing districts

22 Lake District Qualifications Economic Underutilization and Liability If we compare the Lake District using a measurement of EAV per acre and use Riverport and Earth City for comparison: The EAV of the Lake District in its present condition and uses is about $6,600 per acre The EAV of Riverport is about $149,000 per acre (19 times greater than the Lake District) The EAV of Earth City is about $104,000 per acre (16 times greater than the Lake District)

23 Lake District Qualifications Insanitary or Unsafe Conditions Lack of internal drainage creates flooding: Closes roadways impacting property access and causing public safety issues for drivers and for emergency vehicles Standing water breeds mosquitos Access to MSD treatment plant has been cut off Airport hangers and runways have flooded Farm and other industrial buildings have been flooded Property damage has resulted

24 Lake District Qualifications Insanitary or Unsafe Conditions

25 Lake District Qualifications Insanitary or Unsafe Conditions 2015

26 Lake District Qualifications Insanitary or Unsafe Conditions 2017

27 Summary In the finance and real estate market today (and for the predictable future), the Lake District will not develop without use of some public financing tools Even deep-pocket developers aren t taking on projects with this level of front end investment Making flood water an amenity is expensive Large floor plate and multi-story buildings on flood plain soils means higher building cost Green infrastructure and quality development drives up development costs