Hamilton Green / White Plains Mall - Value Generation of Amenitized Developments. AKRF February 12, 2018

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1 Hamilton Green / White Plains Mall - Value Generation of Amenitized Developments AKRF February 12, 2018

2 Hamilton Green Hamilton Green is a vibrant, new, mixed-use community that would serve as a model for future development within the White Plains Transit District. Hamilton Green is set apart from other urban development because of its unique "Public Platform," which incorporates a series of programmed, managed, and experiential components that are available to the public and that connect to the public realm around it. The interweaving of public and private spaces strengthens its connection to the City, anchors a dynamic new neighborhood, and serves as a bridge between the TransCenter and the Downtown Core. Hamilton Green massing diagram The Public Platform includes all publicly accessible elements of the project. The central component of the Public Platform is the Hamilton Green, the namesake of the project, which is the elevated open space that rests in the center of the block. Additional elements of the Public Platform include street level retail and open space, an upscale Food + Craft Hall, the Via (an interior retail corridor), and the structured parking garage. Illustrative rendering of Hamilton Green open space 2

3 Document Purpose This document assesses the public and third-party fiscal benefits of the proposed Hamilton Green development; quantifies these benefits; and where possible, translates them into potential tax revenue streams to the City. Increased fiscal benefits are the result of a two-step process, including value generation and value capture. Value generation is the result of an activity that generates a value larger than the cost of the project. Such projects have a positive signaling effect that radiates change and optimism beyond the project s boundary and results in increased market and investment activities. While these effects are immediately visible, they only result in fiscal benefits if mechanisms are in place to capture the newly generated value. In the case of Hamilton Green, its distinctive Public Platform, programming, and retail space have the unique potential to generate and add significant value, primarily to surrounding properties and businesses. To assess and quantify the value-add potential, AKRF has conducted a number of case studies in communities comparable to White Plains where projects of a similar size and stature were developed. Through these case studies it was observed that substantial value was generated not only by the projects themselves but through the catalytic effects of the projects on the surrounding neighborhoods and businesses. The report thoroughly analyzes and documents each case study and applies outcomes where applicable to conditions in White Plains. AKRF then quantified the amount that would be captured by the City of White Plains in the form of tax revenues. For example, value generated by increased sales can be captured by the sales taxes applied to the additional goods and services sold. However, other value generation effects are likely to remain uncaptured. For example, while property values in the vicinity of Hamilton Green are certain to increase significantly, much of the increase in value will remain unrealized until properties are reassessed. 3

4 Value Element Overview Increased value can be identified through value elements generated by the development and include: 1 - Effect on commercial sales 2 - Effect on future Transit Oriented Development (TOD) 3 - Catalytic effect on development activities 4 - Effect on neighboring property values 5 - Effect on the competitiveness of White Plains 4

5 Value Element 1a Halo Effect of Activated Platform on Retail Sales Premise: Food-activated properties increase value of surrounding businesses. Key Takeaway Hamilton Green s Food + Craft Hall and highly activated Public Platform will boost the sales performance of nearby retailers by 13 percent, resulting in $2.3 million of additional sales tax revenue. Case Study Methodology The Grove LA encompasses 30 acres and includes a trolley to move visitors around the site. According to a ULI study of food halls around the globe, foodactivated retail spaces provide a 13 percent boost to neighboring retailers. 3 This 13 percent increase in sales due to the presence of food halls is identified as the Halo Effect. Google Maps, 2017 One can see the Halo Effect in action: the Grove Mall in Los Angeles, CA, the nation s second most successful mall in terms of sales per square foot (psf) grosses over $2,000 annually. The highly activated central spine helps to increase the attractiveness and visitation to the retail district, which ultimately leads to significantly higher sales. Beyond retail, the mall includes worldrenowned food items (Ladurée, Dominique Ansel), activated streets, outdoor restaurants, and a trolley. 4 This analysis projects such effects will be greatest at City Center, the Galleria Mall, and the neighborhood-serving retailers located on Main Street and Mamaroneck Avenue due to their proximity to Hamilton Green (all are within a ¼-mile walking distance). Branding Los Angeles NY Eater DeKalb Market Hall activates the recently opened City Point Mall in Brooklyn, NY. 3. Cultivating Development Urban Land Institute, 2015 & Food Markets Nourishing Development Urban Land 4. Malls that make the most per square foot CNBC,

6 Value Element 1a Halo Effect of Activated Platform on Retail Sales Effects on the City of White Plains AKRF estimated sales per square foot revenue for shopping clusters in White Plains using CoStar, ICSC, and the New York Times 5. For the Galleria, sales were estimated to be approximately $400 psf, for City Center $550 psf, and for the retail at Main Street and Mamaroneck Avenue approximately $450 psf. 6 Sales psf estimates were then applied to the gross leasable area (GLA) of each shopping center to estimate the total current sales. In aggregate, the three shopping clusters produce approximately $720 million in sales annually. AKRF applied the City s sales tax rate of 2.5 percent to total sales to get an estimated sales tax revenue of approximately $18 million, which would result from current sales at City Center, the Galleria Mall, and the neighborhood-serving retailers located on the Main Street and Mamaroneck Avenue block. Google Earth, 2017 Downtown retail shopping district anchored by connections with Hamilton Green Estimated Current Annual Sales Tax Revenues From Retail within a ¼ mile of Hamilton Green Downtown Shopping Size (sf) Current Sales (psf) Current Total Sales Sales Tax Revenue (2.5 percent) Galleria 900,000 $400 $360,000,000 $9.0 million City Center 600,000 $550 $330,000,000 $8.2 million Main & Mamaroneck Block 70,200 $450 $31,590,000 $0.8 million Current Total Tax Revenue $ 18.0 million 5. In White Plains, Malls Shop Till You Drop New York Times, Simon Offloads Trio of Regional Malls to Pacific Retail CoStar News, Square footage for Main & Mamaroneck calculated using Google Earth 6

7 Value Element 1a Halo Effect of Activated Platform on Retail Sales Effects on the City of White Plains It is assumed that the value differential from the global ULI study will hold true in White Plains and for the Hamilton Green project. Therefore, a 13 percent increase in sales resulting from proximity to Hamilton Green was added to the existing sales per square foot data for shopping clusters. An increase of 13 percent in sales would mean the Galleria would average $452 psf, City Center would average $622 psf, and the Main and Mamaroneck block would average approximately $509 psf. In aggregate, a 13 percent increase in sales is equal to an increment of $94.1 million in sales revenue over existing revenues. Thus, the value differential resulting from the specific type of amenities provided by Hamilton Green a food hall and public platform with active programming is estimated to result in incremental City sales tax revenues of approximately $2.3 million per year as compared to existing sales tax revenue. City Center in downtown could see its sales per square foot increase to $622 as a result of Hamilton Green s development Estimated annual sales tax revenues to the City due to the halo effect of Hamilton Green within a ¼-mile of site Downtown Shopping Size (sf) New Sales psf as a result of HG Halo Incremental Sales psf as a Result of HG Halo LoHud Sales Tax Revenue (2.5 percent) Galleria 900,000 $450 $46,800,000 $1.1 million City Center 600,000 $620 $43,200,000 $1.1 million Main & Mamaroneck Block 70,200 $509 $4,142,000 $0.1 million Incremental Tax Revenue $2.3 million 7

8 Value Element 1b Effect on Captured Retail Expenditures Premise: Hamilton Green will increase the City s ability to capture regional spending. Key Takeaway The City s ability to retain spending depends on the creation of unique retail experiences and food-activated spaces. Hamilton Green s activated platform will attract shoppers to downtown and generate $1.5 million more in sales tax revenues compared with the existing White Plains Mall. Case Study Methodology AKRF conducted market research to quantify the average sales per square foot for food halls and retail similar to what would be developed at Hamilton Green. San Francisco s Ferry Building Marketplace is a historic venue that has been rehabilitated as a market for the sale of artisanal cheese, coffee, candy, and prepared foods. According to the ULI s Food and Real Estate Cutting Edge Trends report, San Francisco's Ferry Building Marketplace averages $1,250 sales psf annually. 7 Forbes Travel Guide San Francisco s Ferry Building Market averages $1,250 sales psf annually. Eataly, in New York City, is the world's largest Italian marketplace featuring restaurants, food and beverage counters and retail shops, and generates $1,700 sales/sf annually. 8 The Ferry Building Marketplace and Eataly are used as case studies for potential sales revenues from Hamilton Green s Food + Craft Hall. As for Hamilton Green s retail component, non-anchor tenants in retail centers in the U.S. generate an average between $ in sales psf annually. 9 New York s Eataly averages $1,700 sales psf annually. New York Times 7. Food and Real Estate: Cutting Edge Trends Urban Land Institute At Eataly, the Ovens and the Cash Registers Are Hot New York Times, Calculated based on averages from a collection of non-anchor retailers previously studied by AKRF 8

9 Value Element 1b Effect on Captured Retail Expenditures Effects on the City of White Plains AKRF conservatively estimates Hamilton Green s Food + Craft Hall would average approximately $1,200 in sales psf using case studies as benchmarks We estimated Hamilton Green s retail would average approximately $600 in sales psf since the retail provided in Hamilton Green would be more in line with the Class A retailers of City Center rather than The Galleria. Hamilton Green would include 66,400 square feet of retail and 19,000 square feet of food hall programming. In total, these components would result in an estimated $62.6 million in annual sales based on sales benchmarks from the case studies. The estimated $62.6 million in sales at Hamilton Green would provide an annual projected sales tax revenue of $1.6 million based on the current sales tax rate of 2.5 percent. Compared with the existing White Plains Mall that provides an estimated $125,000 in annual sales tax revenue, the new Hamilton Green project would provide the City an annual incremental increase in sales tax revenues of approximately $1.5 million. Hamilton Green s proposed food + craft hall is estimated to make $1.6 million in sales tax revenue annually for the City Hamilton Green Projected Sales and Sales Tax Revenue 10 Use Retail Food Hall Square Feet 66,400 19,000 Projected Yearly Sales (psf) $600 $1,200 Projected Yearly Sales $39.8 million $22.8 million Projected Tax Revenue $1.0 million $0.6 million Total Projected Annual Sales Tax to the City White Plains Mall Estimated Current Annual Sales Tax to the City ($250/sf) Incremental Projected Annual Sales Tax to the City $1.6 million $0.1 million $1.5 million 10. White Plains Mall existing sales tax contribution comes from rent rolls provided to AKRF by Street-Works. Projected sales includes all retail within the White Plains Mall, except the DMV 9

10 Value Element 2 - Effect on Future TOD Premise: Quality, activated TOD creates more value than purely functional TOD. Creating a solely functional development would leave potential value unrealized. Key Takeaway Hamilton Green would provide White Plains with a quality TOD development that would increase the value of other TOD sites, particularly the four train station sites identified in the City s Transit District Study. If developed as a quality TOD, the property and school tax revenue generated from the four train station sites would equate to an approximate $635,000 premium. Case Study Methodology Quality TODs include public open space, outdoor restaurants, walkable streets, and programmed public open space. Comparatively, a merely functional TOD would have sidewalks but no street trees, pedestrian lighting, or little to no street activation, such as retail. AKRF identified two TOD locations exemplifying the distinctions between quality and functional TODs to illustrate the value premium quality TODs command: Rockville Town Center and Twinbrook. Both TOD case studies are located in the northwest suburbs of the Washington D.C. core market, similar to White Plains s location as an edge city to New York City. The centralized train stations are two miles from each other, and are within the same municipality and school district. Both were built within the past 10 years. Greater Washington, D.C. metro area Google Earth,

11 Value Element 2 - Effect on Future TOD Twinbrook, MD is a functional TOD, with an emphasis on traditional car use. The aerial view of Twinbrook shows there is a substantial amount of surface parking that encourages driving. Green spaces appear to be inconsistent and disconnected from one another. Busy streets and missing pedestrian links restrict residents to small areas. The lack of street trees or interesting surroundings further discourage walking. Buildings within the Twinbrook TOD do not meet the street in an inviting way. They also lack outdoor seating or any retail display windows. 11

12 Value Element 2 - Effect on Future TOD Rockville Town Center is a quality TOD, where planners focused on the human experience and place-making. At-grade parking lots are limited, leaving room for buildings to meet the street. Trees line most streets, providing shade coverage and serve as a buffer between pedestrians and cars. Street design is largely focused on the pedestrian, rather than the car. Trees and grass provide a cushion from the built environment. The buildings are architecturally distinct from one another, increasing a person s sense of place in an urban environment. By developing the master plan for Rockville Center, Street-Works set the foundation for a successful development. Ground-floor retail is inviting and features awnings, large windows, outdoor seating, and open doors. 12

13 Value Element 2 - Effect on Future TOD Case Study Methodology (cont.) AKRF collected sample rent data in fall 2017 for the two TOD areas to quantify the TOD value premium commanded by quality TOD (i.e., Rockville Center) as opposed to functional TOD (i.e., Twinbrook). The sample size was approximately 25 one- and twobedroom units per TOD and rents were collected from online real estate listing databases. 11 An average annual price per square foot was calculated for each TOD based on the collected sample rents and their associated unit sizes (sf). In Rockville Town Center, units were priced at an average of $28.7 psf. Apartments in Twinbrook were priced at $26 psf. Case Study Findings A $2.70 psf difference in asking rent was found between the two TOD districts, with developments in the quality TOD commanding a rent premium over those units within a purely functional TOD. Developments near a quality TOD such as Rockville Town Center on average commanded a 11.2 percent rent premium over developments near a purely functional TOD such as Twinbrook. Twinbrook Functional TOD Rockville Town Center Quality TOD Google Maps Google Maps 11. Rent information was collected from apartments.com during the months of September and October,

14 Value Element 2 - Effect on Future TOD Effects on the City of White Plains The development of Hamilton Green would help the 4 train station lots identified in the Transit District study to realize the value potential of a quality TOD. This analysis assumes that the 11.2 percent value differential from the case study would hold true in the City because the City has similar characteristics to Rockville Center. Becoming part of a quality TOD, the train station sites would be assessed at $8.00 psf (an 11.2 percent increase), resulting in an increment of approximately $634,000 more property tax revenues than if the sites were developed as a functional TOD. To model the difference in property tax revenue from a quality TOD versus a functional TOD, AKRF projected the property value of the train station sites if developed as a functional TOD and then compared it to the value of the sites if developed as a quality TOD. According to the DEIS, a functional TOD project in White Plains was assessed at $7.20 psf in If developed as a functional TOD, the train station sites would result in approximately $5.7 million dollars in property tax and school tax revenues. City of White Plains White Plains Transit District Name Zoning sf Functional TOD Assessed Value (psf) Estimated Assessed Value Estimated City Taxes Estimated School District Taxes Quality TOD Assessed Value (psf) Quality TOD Estimated Assessed Value Estimated City Taxes Estimated School District Taxes Firehouse 362,500 $ 7.20 $ 2,610,000 $ 536,000 $ 1,635,000 $ 8.00 $ 2,900,000 $ 596,000 $ 1,816,000 Parking Garage 200,000 $ 7.20 $ 1,440,000 $ 296,000 $ 902,000 $ 8.00 $ 1,600,000 $ 329,000 $ 1,002,000 Quality TOD Premium Station Lot 187,500 $ 7.20 $ 1,350,000 $ 277,000 $ 846,000 $ 8.00 $ 1,500,000 $ 308,000 $ 939,000 Bronx Street Lot 202,500 $ 7.20 $ 1,458,000 $ 299,000 $ 913,000 $ 8.00 $ 1,620,000 $ 333,000 $ 1,015,000 Total $ 1,408,000 $ 4,296,000 $ 1,566,000 $ 4,772,000 $634,000 14

15 Value Element 3 - Catalytic Effect on Future Development Premise: Hamilton Green will encourage high-quality infill development. Key Takeaway Hamilton Green s development will send a positive signal to the market, that should lead to earlier development of infill projects in the vicinity. Early development will increase the present value (PV) of soft sites significantly and would be equal to an average annual contribution of $550,000 in property taxes to the City. Soft Site Assessment Methodology AKRF identified potential soft sites within the vicinity of the project through an analysis of underdeveloped sites and drawing from the White Plains Transit District study. Underdeveloped sites leave value on the table by not taking advantage of the maximum amount of rentable space allowed by the City s zoning. Four sites near Hamilton Green and the TransCenter were identified as soft sites including: 1 Water Street; 12 Water Street; 170 Hamilton Avenue; and 1 Barker Avenue (see map on following page). The 1 Barker Street, across from the project site has the potential to be a.7-acre redevelopment Google Maps, 2017 The redevelopment of the White Plains Mall site is expected to signal a change in market conditions and encourage redevelopment of soft sites faster than it would occur without Hamilton Green. Under current market conditions, it is unlikely that these sites would be developed in the near future. 15

16 Potential Soft Sites for Catalytic Development 1 W a t e r S t r e e t 1 B a r k e r A v e 1 2 W a t e r S t r e e t P r o j e c t S i t e H a m i l t o n A v e n u e 16

17 Value Element 3 - Catalytic Effect on Future Development Soft Site Assessment Methodology (cont.) AKRF determined the maximum build-out based on lot area and existing zoning, and then assumed a likely development program (i.e., residential, commercial) using the full build-out for the five soft sites. To estimate the total construction costs, regional costs of construction for the different assumed uses were applied to the maximum square footage. The market value of the project was assumed to be equal to the construction cost. According to the City Assessor, a property s assessed value is equal to 3.1 percent of its market value. The assessed values of fully developed soft sites were estimated using the 3.1 percent multiplier,. Effects on the City of White Plains In aggregate, the soft sites and likely development program would be estimated to have a total assessed value of approximately $8.2 million. AKRF then calculated the net present value (NPV) of tax revenues streams for each scenario. Without the Hamilton Green catalytic effect, infill properties would develop later and generate approximately PV $7.1 million in property taxes. With the Hamilton Green catalytic effect, infill properties would develop sooner and generate approximately PV $18.1 million in property taxes over a 20 year time period.. The incremental property tax revenues attributable to the Hamilton Green catalytic effect is approximately PV $11 million over 20 years or an average annual contribution of $550,

18 Value Element 4 - Potential Effect on Neighboring Property Values Premise: Highly activated projects generate higher property values in neighboring areas. Key Takeaway Hamilton Green, with its activated Public Platform, is expected to have a significant effect on surrounding properties and lead to an annual property value increase of approximately $200 million per year. Case Study Methodology Projects with highly activated, mixed-use, and programmed spaces have become increasingly desirable to shoppers and residents, and also have a profound impact on surrounding neighborhoods. These projects have proven to be catalytic for the attractiveness of the surrounding communities and have spurred significant value growth. Blue Back Square, West Hartford, CT Two activated development projects similar to Hamilton Green were identified to illustrate and isolate this catalytic effect. The two case study examples are both located within the Northeastern market, are outside but well-connected to core cities, include a substantial portion of programmed public space in their respective development program, and were completed within the past two decades. The selected development projects are Blue Back Square in West Hartford, CT, and Bethesda Row, in Bethesda, MD. Blue Back Square was competed in 2006, and Phase 3 of Bethesda Row was completed in Both of these projects involved Street-Works Development. Bethesda Row, Bethesda, MD 18

19 Value Element 4 - Potential Effect on Neighboring Property Values Case Study Methodology (cont.) To document property value trends in the immediate vicinity of the activated developments, sample properties within walking distance (i.e., ½-mile radius) of each project were identified. We collected value trend data for 10+ properties for each area. 1 AKRF collected the property value for each sample data point for the year before the project was completed and for the most recent assessment date available utilizing recorded home sales and the Zillow Home Value Index. (Using longer time periods limited the cyclical effects of the real estate market.) In the case of Blue Back Square the time frame included 12 years and for Bethesda Row, 16 years. We subtracted the before-completion-property value from the most recent property value recorded and divided this number by the number of years in between the data points to calculate the average annual growth rate. The background growth rate for each city was calculated and subtracted from the growth rate for the properties within a ½- mile distance of each development to eliminate potential market area-specific effects. Case Study Findings In Bethesda and West Hartford, property values in proximity to the development projects increased at substantially higher rates than in the city where they were located. Property values within a ½-mile of Bethesda Row grew at an annual growth rate 5.4 percent higher than all of Bethesda, MD. Property values within a ½-mile of Blue Back Square grew at an annual growth rate 12.2 percent higher than the rest of West Hartford, CT. Bethesda Row Blue Back Square (percent) (percent) Time Frame 2001 to to 2016 Background Growth Total Background Growth Per Year Sample Properties Growth Total Sample Properties Growth Per year Sample Properties Net Growth Rent data was collected on apartments.com in September and October

20 Value Element 4 - Potential Effect on Neighboring Property Values Effects on the City of White Plains Increase in Property Values Because Hamilton Green will provide a highly activated space (public platform) similar to those found in Bethesda Row and Blue Back Square, effects on property values in the vicinity of the development are expected to mirror those observed in the case-study communities. Similar to the case studies, it is assumed that Hamilton Green would increase the value of both residential and commercial properties. AKRF identified all properties within a ¼-mile radius of the Hamilton Green site 1. We consciously reduced the radius to provide a more conservative estimate accounting for location-specific limitations in White Plains (i.e., the full force of effects would not reach across Broadway and beyond Martine Avenue). AKRF then identified the assessed value of each property within the ¼-mile radius, multiplied the total value with the most conservative growth rate (i.e., 4.5 percent), and applied the City s equalization rate to model the potential growth in market value. White Plains currently lacks a mechanism to consistently capture increases in property value. However, triggered by permitted upgrades to both residential and commercial buildings, it is expected Hamilton Green will have a noticeable impact on property taxes generated by properties within its vicinity. Properties in proximity to the Hamilton Green project are expected to grow in value by over 5 percent annually as a result of Hamilton Green s development. Applying the 5.4 percent growth rate to the properties within ¼ mile of Hamilton Green results in a total annual property market value increase of roughly $200 million. 1. Does not include Catalysts and TOD Properties 20

21 Value Element 4 - Potential Effect on Neighboring Property Values Effects on the City of White Plains Job and Wage Generation In addition, increased attractiveness will lead to rising market activity and higher sales volumes. Market related activities will generate income for the City in the form of building application and recording fees as well as mortgage taxes. House price-induced changes in wealth also typically lead to large changes in household spending. A portion of the $200 million value increase is generated by construction and building improvement activities. A recent comparison of Montgomery County, MD where Bethesda Row is located, showed that these activities contribute approximately 22 percent to the total property value growth. Applying this percentage to the total property market value growth of $200 million in White Plains results in improvement and construction activities valued at $45 million. 1 Building improvement activities catalyzed by Hamilton Green are projected to generate a substantial number of jobs and wages. Projected Annual Employment and Wage Generation from Improvement Activities on Neighboring Properties. 2 Annual Employment & Wage Generation These value generating activities are projected to support 320 jobs and generate more than $25 million in wages annually. Employment Compensation Direct 209 $17.2 million Indirect 48 $3.6 million Induced 63 $4.4 million Total 320 $25.2 million 1. Identified total property value increase and estimated value of permits issued between 2013 and Discounted permit values to reflect value retained based on retention benchmark by remodeling.hw.net 2. Results based Implan an economic input-out model 21

22 Value Element 5 - Effect on the Competitiveness of White Plains Premise: Hamilton Green will improve the City s ability to attract and retain residents and businesses. Key Takeaway White Plains, Yonkers, New Rochelle, and Stamford compete to retain and attract residents, visitors, and employers. Hamilton Green would improve the City s ability to attract desirable population segments and strengthen its office market. If White Plains attracts only 10 percent more young professionals, the additional population would produce a demand for 750 additional dwelling units and 200,000 square feet of new office space. Catalytic development projects have proven to spur additional commercial development activity. Bethesda Row, for example, has spurred 2.6 sf of office space for every 1.0 sf of catalytic development space. Case Study Methodology Tech companies (like Amazon) seek to locate in urban settings in order to attract their labor force, who seek an urban living and work environment. Cities across the U.S. have begun to revitalize more suburban areas into comprehensive, mixed-use, live-work communities to attract residents and employers. Source: Metro North Railroad White Plains, Yonkers, Stamford, and New Rochelle, are all competing for residents and jobs. 22

23 Value Element 5 - Effect on the Competitiveness of White Plains Case Study Methodology Research conducted by Nielsen in and by Area Development in suggest that two-thirds of young professionals seek to live in mixed-use urban centers, in close proximity to shopping, restaurants, and offices. In addition, 40 percent of young professionals surveyed want to continue living in an urban setting in the future. Young professionals prefer highly amenitized centers mixing retail, residential uses, and activated open space. They prefer emphasis on diversity in both community design and population, pedestrian and transit infrastructure, environmental sustainability, mixed housing types (single-family, townhomes, and apartments), historic preservation, and public parks for community gatherings. At the same time, catalytic development projects have the ability to affect the competitive stature of employment clusters by strengthening the existing office market. Harbor Point Stamford s new Commons Park, developed in conjunction with the new Harbor Point development. A comparison of the office inventory before and after Bethesda Row was completed revealed that Bethesda Row became a stimulus for the office market, spurring approximately 900,000 sf of office space (i.e., 2.6 sf for every 1.0 sf of the Bethesda Row development). As a development consultant and master planner, Street-Works was crucial for the successful realization of Bethesda Row. 12. Millennials Breaking the Myths Nielsen, Minding the Millennials in Real Estate Decisions Area Development,

24 Value Element 5 - Effect on the Competitiveness of White Plains Case Study Findings Within the Southern Westchester and Fairfield County market, White Plains, New Rochelle, Yonkers, and Stamford are competing for the sought-after population segment of skilled and mobile young professionals. Projected Market Share of 15- to 34-year-olds by 2022, in the Westchester/Fairfield County Market By 2022 almost 130,000 people between the ages of 15 and 34 will live in these four cities. Current population projections suggest White Plains would only capture 8.25 percent (15,752) of this population in the region. 14 Hamilton Green would provide many of the amenities desired by young professionals, and would reinvigorate downtown into a vibrant mixed-use town center. Source: ESRI Demographics Effect on the City of White Plains Even an additional 10 percent of the total projected population anticipated to move to White Plains (1,500 people), would demand 750 additional housing units. Assuming 50 percent of those additional residents worked in the City, they would demand 200,000 sf of downtown office space. Also, if Hamilton Green would have a similar catalytic effect as Bethesda Row, it would create about 2.6 sf for every 1.0 sf of the Hamilton Green development, equal to about 2.3 million sf of office space. That said, while Hamilton Green would expect to encourage some new office development, it would primarily be expected to decrease vacancies and spur the conversion of Class B and C space to Class A space. 14. Data collected from ESRI Demographics,

25 Value Summary Conservative Quantifiable Effects Effect on commercial sales Effect on future TOD Catalytic effect on development activities Total (annually) $3.8 million $0.6 million $0.6 million $5.0 million Conservative Qualitative Effects Effect on neighboring property values Effect on the competitiveness of White Plains $200 million increase in property value 320 jobs* and $25 million in wages annually 750 units/ 200k office space *Jobs and related wages are generated by permitted construction activities. 25

26 Million $ Annual Public Tax Benefit Value Total: $9.0 Million $0.6 $0.6 Catalyzing Infill Development 7 Effect on Future TOD Development 6 Total: $5.0 Million $3.8 5 Effect on Neighboring Retail Sales $5.0 $3.9 Single-Use Residential Development ("Base Value") 1 0 Single-Use Residential Development Hamilton Green 26

27 Conclusion Hamilton Green s active public realm is expected to add an incremental value of $5.0 million annually to the City of White Plains. Title Premise Additional Benefit Potential Annual Incremental Increase in Fiscal Return Value Element 1a Halo effect of Hamilton Green on retail sales (Food) activated spaces add value to neighboring retailers 13 percent increase in surrounding area retail sales $2.3 million Value Element 1b Effect of Hamilton Green on retail sales The activated environment will help downtown White Plains capture a larger market share and prevent an outflow of expenditures. Additional retail sales from Hamilton Green development $1.5 million Value Element 2 Effect on future Transit Oriented Development Activated and amenitized TOD creates more value than purely functional TOD. Creating a development that is only functional would leave value on the table. 11 percent rent premium for quality TOD $634,000 Value Element 3 Catalytic effect on future development Hamilton Green will encourage increased high quality infill development in Downtown White Plains Development of Hamilton Green will potentially spur $8.2 million of development on soft sites within the downtown core $550,000 Value Element 4 Effect on neighboring property values Activated development projects have a positive impact on property values in adjacent areas percent increase in adjacent property values (8.8 percent average), conservatively increasing property values by $200 million. Value growth is estimated to generate 320 jobs and $25 million in wages Value Element 5 Effect on the competitive stature of White Plains Hamilton Green increases White Plains competitiveness versus similar communities in attracting new residents. New young professionals will move to White Plains demanding housing and office space at rates higher than projected Yearly Tax Value Generated by Hamilton Green $5.0 million 27