Garner District Certified Redevelopment Area Plan State College Planning Commission Approved November 7, 2007

Transcription

1 Garner District Certified Redevelopment Area Plan State College Planning Commission Approved November 7, 2007

2 Page 2 of 30 I. Introduction The purpose of this report is to fulfill the requirements of the Pennsylvania Urban Redevelopment Law to prepare a redevelopment proposal for all or part of any area certified by the planning commission to be a redevelopment area and for which the planning commission has made a redevelopment area plan. This report describes conditions within the proposed redevelopment area and documents the existence of one or more of the of the Redevelopment Area Plan requirements in Section 10 of the Urban Redevelopment Act. This act includes a list of factors that must be considered by the Planning Commission when certifying the redevelopment areas. The criteria for the plan are to include, with out being limited to, the following 1) The boundaries of the area with a map showing the exiting uses of the real property herein. 2) A land use plan of the area showing the proposed uses following redevelopment; 3) Standards of population densities, land coverage and building intensities in the proposed redevelopment; 4) A preliminary site plan of the area; 5) A statement of the proposed changes, if any, in zoning ordinance or maps; 6) A statement of any proposed changes in street layouts, street levels and proposed traffic regulation, including the separation or excluding of vehicular traffic partially or totally from pedestrian traffic; 7) A statement of the extent and effect of the re-housing of families which may be made necessary from the redevelopment area plan, and the manner in which such re-housing may be accomplished; 8) A statement of the estimated cost of acquisition of the redevelopment area, and of all other costs necessary to prepare the are for redevelopment; 9) A statement of such continuing controls as may be deemed necessary to effectuate the purposes of this act. Part II of this report will provide basic conditions based on information gathering in September 2007 through Centre County Tax assessment data and State College Borough Planning, Zoning and Public Works documents. Under the Urban Redevelopment Act, the definition of Redevelopment Area requires a finding that the area is blighted under (one or more) of the conditions spelled out in Section 2 of the Urban Redevelopment Act. The Planning Commission has to make a determination that the Garner District meets the purpose and intent of the Urban Redevelopment Act. The conditions to be evaluated are: a) unsafe, unsanitary, inadequate or over crowded condition of the dwellings in the area; b) inadequate planning of the area, or excessive land coverage by the buildings thereon; c) lack of proper light and air and open space; d) defective design and arrangement of the buildings thereon; e) faulty street or lot layout; or f) economically or socially undesirable land uses. Part III of this report will document the presence of the above mentioned blighting factors to warrant the study area s designation as a blighted area in need of redevelopment.

3 Page 3 of 30 II. Summary of Basic Conditions A. General Location The proposed Garner District Certified Redevelopment Area is an area in the Borough of State College s downtown. It contains a combination of residential, office and retail uses. In general terms, this area is bounded by East College Avenue (Hetzel to Hiester Street), Calder Way (western property line to Calder Way), Locust Lane (Calder Way to Wilson Alley) Beaver Avenue (Hiester Street to Garner Street), Garner (Beaver Avenue to Calder Way) Calder Way (Garner to Hetzel Street, and Hetzel Street (Calder Way to College Avenue.) B. General Description The proposed Certified Redevelopment Garner District contains 156 tax parcels in the downtown section of State College Borough as shown in the Project Boundary Map. Figure 1: Project Boundary Map and Existing Conditions

4 Page 4 of 30 The proposed redevelopment area consists of 156 tax parcels as shown in Table 1. Of these, 36 are individual condominium parking spaces and 94 are condominium dwelling units located in one building at 458 East College Ave (Parcel , 054). The remaining 26 parcels are associated with land that is located in Garner District. This total area of Garner District is 7.3 acres. This area does include the public rights-of-way of East College Avenue, Beaver Avenue, Garner Street, Hiester Street, Calder Way, Wilson Alley, Sowers Street and Hetzel Street. C. Current Land Use Current Land uses in the study area were determined from the Centre County Tax assessment office as follows: 1. Residential uses are primarily condominium and apartment as well as their parking for occupants and some commercial for a total of.93 acres. 2. The remaining area contains a mix of commercial uses and commercial land that contains no buildings. Commercial Hard Surface -.34 Commercial Vacant -.62 Commercial This area contains no publicly owned land other than the road right-of-way for the streets and alleys within the study area. D. Downtown Improvement Plan The Downtown Vision and Strategic plan for the Borough of State College provides guidance in the types of uses and desired changes for the downtown. The overall focus of implementation is a specific sequence of actions or strategies. They include: Improve the public realm of Downtown Encourage owner-occupied housing within the Downtown Identify other modifications and initiatives needed to achieve better overall Downtown environments. The downtown plan shows Garner District within Area 2: Garner District. In this section of the document the plan notes the following deficiencies: The Garner District includes several older large-scale buildings commercial buildings and surface parking areas. Future land uses within the District should include mixture of retail, office uses and entertainment venues. The surface parking on the west side of Garner Street should be redeveloped with a mixeduse building that integrates retail and Class A office condominiums.

5 Page 5 of 30 The Borough should require a small public plaza at the corner of Calder Way and Garner Street and should be designed as a gateway to Calder Way. The downtown improvement plan suggests the surface parking lot located on the west side of Garner Street should be redeveloped with mixed use building that integrates Class A office condominiums. Buildings in Garner District could utilize the steep topographic conditions to construct buildings that are more than five stories in height along Beaver Avenue and seven stories in height along Calder Way. Within this concept structured parking could be provided. However, there appears to be a lack of interest from the development community to redevelop properties and build six or seven story buildings. It is anticipated that by increasing the permitted number of stories through the rezoning up to twelve stories this will encourage redevelopment and building in the downtown. In addition to new buildings the plan notes the area would benefit from a small public plaza located at the corner of Calder Way and Garner Street and could be the gateway to Calder Way. E. Zoning and Proposed Zoning Changes The Garner District is currently zoned Commercial (C) and Commercial Incentive (CID.) The following table provides an overview of the development standards for the General Commercial (C) and Commercial Incentive (CID) zoning districts. This table does not include a list of permitted uses. In the C and CID zoning districts, all uses are permitted except those specifically called out in the zoning regulations as prohibited uses. In general, the list of prohibited uses is limited to industrial and manufacturing uses. The CID zoning district was developed in 2004 and 2005 as a method to use a package of development bonuses and incentives to encourage developers to undertake redevelopment projects that incorporated the design characteristics and mix of uses recommended in the Plan. In addition to the use by right incentives, a separate set of criteria were devised for a conditional use permit (the Signature Development Project) that allowed greater development density of more stringent criteria related to design and mix of uses were met. Commercial Incentive zoning replaced the general commercial zoning in several locations in downtown. The Signature Development Conditional Use applied to those areas that are 1) zoned CID and 2) north of Beaver Avenue.

6 Page 6 of 30 Table 2 Development Standards of C & CID Zoning Districts Zoning District Minimum Lot Area (Square Ft) 1 Family Dwellings-5,000 Minimum Lot Width Front Setback Side Setback Rear Setback C 2 Family Dwellings-8, Feet 15 to18 Feet 0 to 10 Feet 0 to 10 Feet Other Uses None CID All Uses 5, Feet 15 to 25 Feet 0 to 10 Feet 0 to 10 Feet C CID Lot Coverage Height Open Space Parking None None CID Incentives (Building) Front Building Setback = 25 feet or more Green Certified Underground Parking CID Incentives (Uses) Owner-occupied Street Level Commercial where not required Retail/office (mixed use) 45 to 65 Feet 65 to 95 Feet No Requirement No Requirement Bonus Increase in Building Height 1 story (not to exceed 10 additional feet) 1 story (not to exceed 10 additional feet) 1 story (not to exceed 10 additional feet) Up to 2 stories (not to exceed 20 additional feet) 1 story (not to exceed 10 additional feet) Up to 3 stories (not to exceed 10 ft per story) Nonresidential 1 space per 800 SF of GFA with 30,000 SF exempt; Residential same as R zoning districts Nonresidential 1 space per 800 SF of GFA with 30,000 SF exempt; Residential same as R zoning districts Bonus Increase in Floor Area Ratio (FAR) for Residential Use Floor Area Ratio for Residential 2.0 to 3.0 depending on location within the zoning district 2.0 for rental; 3.0 with bonuses for owner-occupied housing units Bonus Reduction in Required Parking 20% 10% - 20% Each underground parking space = 1.5 spaces in a surface lot or above grade structure % 20%

7 Page 7 of 30 Figure 2: Current Zoning In 2006 and 2007, the State College Planning Commission focused its attention on strategies for implementing the recommendations of the Plan as it pertained to downtown planning Garner District. Two of the recommendations resulting from this process were 1) expanding the CID to include the area bounded by Garner Street, Hetzel Street, East College Avenue and Calder Way and 2) increasing the permitted building height from 45 feet to 65 feet in that portion of the General Commercial zoning district bounded by Garner Street, Hiester Street, East College Avenue and Calder Way. It is anticipated the rezoning will occur in 2007.

8 Page 8 of 30 Figure 3: Zoning Change Rezoning the entire Garner District to CID provides many opportunities that the downtown vision describes. This district allows a variety of uses and encourages a mix of uses that can include owner-occupied housing, office condominium, hospitality, and retail through the incentives as shown in Table 2. The Borough has recognized Garner District as a priority and is moving to provide opportunities to redevelop this area by considering zoning changes that increase the intensity of uses. This effort will allow for under utilized parcels to be developed, provide new housing, office and retail space opportunities and also allow the existing buildings to co-exist with the new development. Figure 4 shows the vacant or under utilized parcels in Garner District.

9 Page 9 of 30 Figure 4: Garner District Vacant / Under Utilized Land The proposed rezoning in the Garner District provides for improvement of the public realm by requiring nonresidential uses at street level with a reduced setback. This provides for a variety of uses and permits more activity throughout the day than a residence or office only building. When incentives are provided the district receives additional benefits. Requirement of 5 foot sidewalks along the full length of the side or rear lot line abutting the alley right-of-way provides more public access. The CID Zoning encourages underground parking to utilize street level space for activities that increase street life. A larger setback can provide improved pedestrian access to the downtown. As each incentive is provided the developer will be given a bonus to encourage implementation of these extra amenities. Finally, within these incentives is owner- occupied housing that is maintained through covenants. This will provide for more year round residents within the downtown. Today the Borough houses 27,314 Pennsylvania State University Students within the downtown. There is a need to establish owner-occupied residences in the downtown. There is also a need to establish additional owneroccupied residences in the downtown. F. Garner District Concept Site Plans

10 Page 10 of 30 The Garner District has redevelopment opportunities within its five block area. The Downtown Vision and Strategic Plan provides some concepts for those blocks. Please review Appendix A: Concept Site Plan Map and the modified view of development concepts on the west side of Garner Street for future development in the Garner District, and the hotel concept as future development options. Table 3 provides estimates for future development with in the Garner District. The Concept Site Plan Map suggests a landmark building as noted in The Downtown Vision and Strategic Plan at the corner of Hetzel Street and College Avenue. This building could be a mix of retail, office and owner-occupied with underground parking. It is anticipated that most of the highlighted areas in the Concept Site Plan Map would be redeveloped by consolidating lots and providing underground parking to utilize the space as efficiently as possible while taking advantage of the incentives in the CID zoning district. The proposed west side of Garner Street development in The Downtown Vision and Strategic Plan has been modified due to the original plan to have a theater has been moved to the west side of downtown. In its place is proposed rental occupied units with first floor retail. The Downtown Plan notes a need for an underground parking structure that provides public parking during the weekday day-time hours. Currently there is no public parking garage in or in close proximity to the district. One location for parking garage could be the current Garner Street parking lot. This could be incorporated into future development of retail residential and office space. It is also centrally located in the Garner District providing easy access to many locations. This block is an appropriate location for rental units due to the close proximity to campus and the surrounding rental housing that currently exists. In addition to the downtown plan concepts there is interest to redevelop the 400 block of East College Avenue (between Garner Street and Sowers Street) into a hotel building that would fit within the requirements of the zoning ordinance and the downtown plan s vision. The concept for the hotel is 150 rooms with 10,000 square feet of restaurant space, first floor commercial and a multi-level underground parking garage of approximately 200 spaces. Open space is limited in this area. There is one small plaza to access buildings in the 400 Block of East College Avenue. Additional open space could be created as shown in the Downtown Vision Plan. An enclosed public space would also be an option that could limit the concern over maintenance of an open public space. A plan developed by LDR and Keller in 1990 suggests the Garner Street parking lot as an appropriate location for an indoor farmer s market and 300 car parking garage.

11 Page 11 of 30 Table 3 Garner District Future Development Scenario Summary Address Lot area E College Ave Hiester Street Hiester Street Locust Lane 345 E Beaver Ave E College Avenue E College Avenue E College Avenue Zoning FAR Notes from Downtown Improvement Plan Residential units* Owneroccupied First Floor Commercial/ Retail Component Additional Commercial Floors.77 C no Yes 1.65 CID 2 office condominimum 20 no Yes 1.56 CID restaurant None NA Yes 1 with retail component.55 CID 2 17 yes no.33 CID 2 restaurant with retail component None NA CID 2 None NA no.54 CID 2 no.83 CID 8 landmark building 70 yes yes 2 *Owner-occupied units 2,000 square feet. Rental units 1,500 square feet. Based on 2007 Signature Hotel proposal Based on 2005 Proposal G. Re-housing Opportunities The Downtown Vision and Strategic Plan has provided initial guidance for the Borough to determine what areas are in need of redevelopment. Neither the rezoning or the Downtown Vision and Strategic Plan rezoning will displace current residents at this time but will provide for replacement housing as well as additional opportunities to provide housing in a location in close proximity to Penn State Campus without adversely impacting the neighboring single family residential neighborhoods Garner District currently has 135 rental units along with the 94 condominium units (86 are rental units) providing for a total of 229 housing units in the area today. If redevelopment were to occur the condominium units would remain and the 135 rental units would potentially be replaced by 146 rental units and owner-occupied units. Table 3 provides a summary of what could occur in Garner District with the zoning changes. This mix of owner-occupied and rental units would provide opportunities for both students and year-round residents to live in the downtown. State College Borough currently has a three homeownership programs as part of the Community Housing Partnership, including the State College Community Land Trust and Housing Transitions, Inc. The Borough s programs include down payment and closing cost assistance and home rehabilitation funds. The State College Community Land Trust offers affordable for-sale homes.

12 Page 12 of 30 Housing Transitions, Inc. offers budget and homebuyer counseling and affordable for-sale homes. State College Borough s program offer affordable for-sale homes and home rehabilitation funds. State College Borough s program accepts applicants making as much as 115% on the area median income, based on household size. The other two programs cap income eligibility at 80% of Area Median Income (AMI), based on household size. This would provide housing assistance for low and middle income persons interested in owner-occupied units in the Garner District. The low-income first-time homebuyer program is an option when funds are available, as a mortgage subsidy and closing cost assistance (up to $50,000 or not to exceed 45% of the purchase price). This is a zero interest, 30-year forgivable loan that does not have monthly payments. The loan is forgiven at 3.33% annually. The subsidy must be paid back when you sell the home or the home is no longer your primary residence. Also, in exchange for the assistance, you agree to a shared equity formula, which typically has limited appreciation on a graduated scale based on the number of years of ownership. You would need a minimum of 3% as down payment. The middle-income first-time homebuyer program is an option when funds are available, the mortgage subsidy and closing cost assistance (up to $45,000 or not to exceed 22% of the purchase price). This is a zero interest, 30-year loan that does not have monthly payments. Instead, the full subsidy must be paid back when you sell the home or the home is no longer your primary residence. Also, in exchange for the assistance, you agree to a shared equity formula, which typically has limited appreciation on a graduated scale based on the number of years of ownership. You would need a minimum of 3% as down payment. Options that could be considered to address the potential affordable housing needs include: Inclusionary zoning where a percentage of all residential units are marketed to individuals and families making 60% of less of AMI. A ten percent set aside is a fairly common number under this type zoning technique. Create a housing development fund where a developer may be a fee in lieu of providing the housing set aside. Funds generated by the fee would be used by a nonprofit housing corporation or the Borough to provide affordable housing. Create an employer assisted housing program where the employer provides either down payment and closing cost assistance to employees or rental assistance to employees. Such programs could be administered by a nonprofit housing corporation, the Borough or other agency (e.g., the County Housing Authority.) In addition to these types of mandatory programs, the public/private partnerships could be established to pursue funding from other state and federal agencies to expand the resources available for affordable housing in the Centre Region. Borough staff believes that it is appropriate to expand the opportunities for commercial development in downtown. It is important to open a dialogue with private developers to begin to address the potential demand for work force housing that could be generated by redevelopment in the affected section of downtown. H. Building Conditions The buildings in the Garner District are older and do not provide the opportunities for improved pedestrian access, underground parking and first floor nonresidential uses that are desirable as

13 Page 13 of 30 described in The Downtown Vision and Strategic Plan and the CID zoning district. While the age of these buildings is unknown anecdotally these buildings have not changed significantly in size or arrangement for the last 25 years. Suggesting that at a minimum with the changes in technology and amenities for student housing the rental properties may not be the most desirable in the downtown. I. Rights-of-Way and Sidewalk and Curbs and Infrastructure Right-of-way As previously stated there is no public-rights-of-way other than what is contained in the right of way for the streets. This includes sidewalks and curbs that are generally in good condition throughout the proposed redevelopment area. Deficiencies where the sidewalk are limited in width along College Avenue between Garner Street and Hetzel Street, as well as, on Locust Lane between Calder Way and Wilson Alley. Due to their location in downtown and the close proximity of the Penn state campus, the alleys are also used by pedestrians. No sidewalk is present on Wilson Alley or on Calder Way between Garner Street and Hetzel Street. The Department of Public Works in an effort to improve the downtown proposes to complete in 2008 a Master Streetscape Plan for the downtown. The streetscape plan will include recommendations for various sidewalk materials, street light poles, street furniture, signage, etc. Once complete, the plan will be used for future improvements and developments. For 2010, funding is proposed for a new downtown vision and strategic plan. The present plan is nearly 10 years old and should be updated. This strategic plan will build upon the master landscape plan and overall land use plans for the Borough that are being prepared through the State College Land Area Plan process. The Borough regularly inspects sidewalk on a rotating basis to determine if replacement is needed. Widening of sidewalk is limited due to the location of building and limited right-of-way. However, sidewalks need to accommodate all users such as the minimum standard of three feet to comply with the American with Disabilities Act. The Borough meets this standard. Whenever the right-ofway permits, this width can be increased to five feet. Sidewalks can also be widened in higher use areas which when opportunities present themselves through development or roadway reconstruction. It is anticipated the best opportunity for additional pedestrian amenities is when a lot is redeveloped. The pavement is also considered in good condition for the avenues, streets and lane. There is minor alligator cracking within the alleys. There are no immediate plans to alter the street layout or street levels or exclude vehicles in favor of pedestrian traffic for those roads within the Borough. Sanitary Sewer Infrastructure Infrastructure including sanitary sewer and water lines would need to be reviewed as development occurs. It is not anticipated the proposed sanitary sewer and water lines would support this redevelopment as suggested for the Garner District. The Borough recognizes a need to review the sanitary sewer capacity in this area for upgrades. The State College Sewer Authority is responsible for collection and conveyance to a point east of the Penn State treatment plant near the Duck Pond. The SCSA has parallel lines in Calder Way adjacent to the area where the zoning changes are proposed. These lines are 10 and 12 in

14 Page 14 of 30 diameter, respectively. SCSA staff analyzed the residual capacity in these lines to determine the level of development that can be accommodated before it becomes necessary to expand the size of the pipes. In preparing this analysis, SCSA staff focused on the line segment that had the least amount of excess capacity. The question of when it would be necessary to upgrade the SCSA lines was discussed with SCSA staff. The answer to the timing question was it depends. That is, the timing of the line upgrades is dependent on the timing of the redevelopment or of other redevelopment that uses the Calder sanitary sewer system but that is unrelated to the proposed zoning changes. The Borough believes that the sanitary sewer infrastructure has either adequate capacity to accommodate potential redevelopment or the capacity improvements needed to accommodate redevelopment of the Garner District. Water Infrastructure The area is served by the State College Borough Water Authority (SCBWA) and if redevelopment were to occur the SCBWA would evaluate what upgrades are needed. If the area were to be redeveloped it is anticipated the water mains would need to be upgraded along Hetzel and Garner Street. In this are a prioritized list was developed in relation to the proposed rezoning in the Garner District as shown below. Priority Location & Size 1. E Beaver Ave (Garner St to High St) - replace existing 6" & 8" cast iron water main with a 12" ductile iron water main. 1,350 linear feet x $350/ft = $472, Hetzel St (Beaver Ave to College Ave) - replace existing 4" cast iron water main with a 12" ductile iron water main. 530 linear feet x $325/ft = $172, Garner St (Calder Way to College Ave) - replace existing 6" cast iron water main with a 12" ductile iron water main. 280 linear feet x $325/ft = $91, Hiester St (Calder Way to Beaver Ave) - replace existing 4" cast iron water main with a 12" ductile iron water main. 380 linear feet x $325/ft = $107, Sowers St (Beaver Ave to College Ave) - replace existing 6" cast iron water main with a 8" ductile iron water main. 520 linear feet x $325/ft = 169,000 Total estimated cost for improvements: $1,012,250. Additional information provided by the SCBWA indicates the lines in Hetzel Street and Hiester Street are older lines (dating to 1915 and 1917) and are included in the Authorities Capital Improvement Program for replacement in 2010 and 2011, respectively. PennDOT is scheduled to reconstruct East and West Beaver Avenue in PennDOT places a 5 year moratorium on opening their rights-of-way for utility replacement following reconstruction. This means that the Authority will be prevented from completing the suggested improvements in East Beaver Avenue until 2013 at the earliest. Water service would be provided from E. College Avenue, Calder Way, or one of the cross streets in the affected area. The Authority has a 12 main E.

15 College Avenue terminating at Garner Street. This main would be available to service redevelopment in the affected area. Oct. 25, 2007 PC Agenda Page 15 of 30 Advancing the improvements to Garner Street and Sowers Street to accommodate redevelopment are two improvements that appeared to have the greatest likelihood of having to be added to the SCBWA s Capital Improvement Program in the relatively near future. Funding for these improvements could come from several sources, including connection and tapping fees, developer contributions, and a partnership between the Water Authority and State College Borough. Public improvements such as water system improvements would be an eligible use of tax increment financing should a tax increment district be created in the affected area. J. Land and Building Values Table 4 shows the top five in Garner District with the highest assessed value are: Table 4 Assessed Value Estimated Market Value (CLR = 29.3% ) Tax Id Number Address ,052-, E COLLEGE AVENUE $536,635 $1,831, ,043-, E COLLEGE AVENUE $570,560 $1,947, ,056-, E COLLEGE AVENUE $730,600 $2,493, ,049-, E COLLEGE AVENUE $2,897,225 $9,888, ,054-, E COLLEGE AVENUE $2,978,755 $10,166,399 The total estimated market value for the Garner District is $ 39,857,645. There are no tax exempt properties in this area. K. Assessed Valuation (Land and Building Values) Centre County tax assessment values indicate that study area land values range from to $138, per acre to $ 717, per acre. Building values range from $4, per acre to $6,624, per acre. Higher value properties are primarily the commercial properties located throughout the study area. The breakdown of the study area assessed valuation by land is $2,450, and building is $9,450, The total assessed value of the study area land and buildings is $11,901, L. Controls to Redevelop Garner District The Boroughs efforts to create the CID and rezone additional sections of the Garner District is one way to encourage growth opportunities that provide first floor nonresidential uses, encourage underground parking and taller building heights to provide additional useful square footage in the down town. It is anticipated that focusing on the downtown Garner District will reduce some of the pressures to develop in the neighboring single-family residential neighborhoods, In addition to the proposed zoning changes additional changes need to be made in order to provide for affordable housing as part of the development. This could be in the form of an incentive tied to increased density when affordable units are provided. These units could provide another option to

16 Page 16 of 30 those first-time homeowners seeking housing in the Borough. More work will need to be done in order to determine what density would make it attractive for the builder to provide that type of housing. Since State College Borough is a college town that houses over 27,314 (based on 2000 Census) students it is important the proper tools are put in place to encourage changes that foster owneroccupied housing redevelopment and that housing is able to maintain its owner-occupied status. In order to maintain owner-occupied residences covenants will be required for these types of units. This will run with the land and be attached to the land. If the owner fails to abide by the covenants, the Borough will be empowered to remove occupancy permits of the building to obtain injunctive relief. These covenants will be required to be recorded with the Centre County Recorder of Deeds and referenced on the development plan. This tool will be implemented prior to occupancy of the building and shall specify that the land owner will comply with all approval conditions applicable to the incentive and bonus provisions under which the land development plan was approved. Another form of control would be the Borough acquiring properties for redevelopment. Redevelopment could be undertaken through the State College Redevelopment Authority singly or in partnership with for or nonprofit entities. The Borough has a history of acquiring land to facilitate the completion of projects. III. Garner District Blighting Conditions Under the Urban Redevelopment Act, the definition of Redevelopment Area requires a finding that the area is blighted under (one or more) of the conditions spelled out in Section 2 of the Urban Redevelopment Act. The conditions to be evaluated are: inadequate planning and defective arrangement of buildings, inadequate pedestrian access and economically and socially undesirable land uses. Inadequate Planning and Defective Arrangement of Buildings The arrangement of buildings in this area have followed the patterns developed when the Borough was just beginning as a community. As the community has grown there have been some changes with larger buildings. However, the blocks and lots have essentially remained the same. The buildings provide limited additional pedestrian access and in most cases the building is built close to roadway right-of-way limiting the possibility of widening the sidewalks. The buildings along East College Avenue between Hetzel and Sowers Street provide limited first floor retail. The combination of first floor housing with the blinds closed and the retail a half story above East College Avenue does not promote activity at the street level. In some ways it isolates the pedestrian as they travel down this portion of East College Avenue from daytime activities and business that occurs in the first floors of these buildings. Redevelopment would provide opportunities to provide more first floor retail and less isolation fro the pedestrian. The east-west orientation of the buildings in the Garner District limits the amount of light that can penetrate the East College Avenue streetscape creating a shadow during the day compared to sections of town where the north south orientation allow for longer exposure to the sun. The building orientation then casts a shadow on East College Avenue. Along with the lack of setback for buildings reduces the comfortably lit spaces during the day. Redeveloping properties that take advantage of

17 Page 17 of 30 the setback and upper story building setback arrangement in the zoning ordinance would assist in providing additional daylight to East College Avenue. In addition to the orientation of the buildings, there are lots that include a significant amount of surface parking. These lots do not provide public spaces for pedestrians and they do not provide for additional livable space whether it is part of the public realm or for the benefit of those accessing a specific property. Providing some type of public space would be of great benefit to this part of the downtown. Other parts of the downtown do provide for public space. One type of public space could be business-oriented, such as, a year-round farmers market. This could provide a place to gather outside of the buildings and provide opportunities for local farmers to have a year-round venue to sell their products. It could also include more small plazas such as the brick walk and sculpture adjacent to the Tavern restaurant in downtown. Figure 5 illustrates the lack of height that is currently represented in the Garner District. The zoning and proposed rezoning would provide opportunities for the majority of the district to increase the building height. The C and CID rezoning allows for additional building height and requires additional setbacks on upper floors, beginning at the 4th floor to avoid sheer building facades and to ensure adequate light and air is available at ground level. It should be noted the current building heights represent reduced leasable area and therefore reduced opportunities to attract more business into the downtown. Figure 5: Building Height

18 Page 18 of 30 Inadequate pedestrian access Pedestrians are limited to the roadways such as East College Avenue and East Beaver Avenue and Garner Street South Allen Street for sidewalks. The alleys do not consistently provide pedestrian or bicycle access due to their use for service vehicles making it extremely difficult to accommodate both. As new development and intensity of uses increases alleys will provide an opportunity to expand the sidewalk network to make connections from new access points along alleys to the more traditional sidewalk network. Sections of sidewalk in a preliminary review have been identified as needing additional width to accommodate the current users. The Borough inspects sidewalks every other year in the downtown. In addition to these inspections the Public works Department as part of the CIP request has a plan to develop a Master Streetscape Plan for the downtown. This plan would look in greater detail at conditions of the downtown for pedestrian use including lighting and other amenities. After review of problem areas, a list of prioritized will occur over time. As rezoning and redevelopment occur to provide more uses and at a greater intensity, it is anticipated there will be greater demand on the sidewalk network. It will be desirable to not only maintain the current network but to rely on the zoning district requirements tools to expand upon the pedestrian network, Currently the C and CID do have sidewalk provisions, however, the only way these can be implement is where redevelopment occurs. Additionally, it is believed alleys may be utilized heavily in this area due to the lack of connections to the Penn State campus. Within the Garner District there is one access point to the camps across College Avenue utilizing Garner Street. An informal connection does exist from the service entrance to the Redifer Commons driveway to Hetzel Street. It is not unusual to see students crossing from that driveway into the downtown. The lack of connections therefore makes travel to and from the campus channelized from the campus to town where pedestrians then disperse in order to take the most efficient route to their residence or other location within the downtown. East College Avenue is the west bound arm of the PA 26 one-way pair that provides the main eastwest access to and through downtown. This section of East College has two travel lanes, a parking lane on the north side and a parking/loading lane on the south side of College Avenue. The only signalized intersection is at the intersection of East College Avenue and Garner Street. While pedestrians are not walking right next to vehicles, the length of East College between Hetzel and Garner is a transitional zone for motorists and pedestrians. The only signalized intersection located at Garner and East College is a collection point for both vehicles and pedestrians. There is an opportunity for motorist to try to move quickly between the University Drive exit ramp to the east and the Garner Street intersection. This section of East College Avenue has very few cues that the downtown in fast approaching. The parked vehicles on both sides and only one visible side of sidewalk provides an impression to keep moving. In addition there are also times when a vehicle is attempting to pull out from a side street and must negotiate around pedestrians and observe oncoming traffic that is blocked by parked cars located on the south side of East College Avenue. Instead, providing for more visible pedestrian presence perhaps by eliminating the north side parking, widening the south side sidewalk, narrowing vehicle travel lanes and providing additional points of access to the campus will allow for drivers to anticipate sooner that the downtown is located before the Garner Street intersection. The CID zoning allows requires additional setbacks on upper floors, beginning at the 4th floor to avoid sheer building facades and to ensure adequate light and air is available at ground level. These characteristics can help to maintain a more comfortable street level pedestrian environment.

19 Page 19 of 30 Economically and socially undesirable land uses This condition exists related to three matters in State College Borough. The long term health of the Borough through taxes collected, declining family households and increasing student households, as well as, declining returns for property owners due to the lack of increased leasable commercial space, as well as, other investment opportunities to maintain the Borough as a healthy and economically diverse community. In addition to conditions that would support the Borough, redevelopment could provide positive impacts for the region. Tax Collection Borough tax collections will need to increase in the Borough. Due to changes in how taxes are collected and limited taxes that can be collected will contribute to reduced collections. This begins with the Borough having limitations on what taxes it can collect. The limitations are due to a number of factors. First a number of taxes are not collected. Taxes available to the Borough under the existing state enabling legislation include occupation, per capita, amusement and mechanical devices taxes. These taxes have limited application due to difficulties with providing adequate revenue, fairness, economy of collection and therefore these taxes are not utilized by the Borough. Other taxes have been suggested but are not authorized by the state enabling legislation or the Borough s Home Rule charter. The Borough is limited to collecting earned income, real estate, emergency and municipal services and real estate transfer tax. In addition to taxes imposed relief is also provided to owner-occupied residential properties through the Homestead Exclusion and therefore shifting the greater share of the real estate tax to commercial property owners. There is concern regarding tax revenue received by the Borough is adequate to meet the Borough future financial needs. The Borough has the lowest median family and household income when compared to the townships that surround it as stated the Report of the Ad Hoc Study Committee. This report was a review of the current tax and revenue structure, as well as, an analysis of alterative tax strategies that could be implemented in the Borough. This report also notes the decline in the number of families and the increase in the number of one person households. In 1970 families comprised of 55.8 percent of the Borough households. In 2000 this percentage had dropped by 27.4 percent. Meanwhile during that same time period the percentage of families has increased in all of the surrounding townships. Instead the demand for renter-occupied apartments in the Borough has increased. This is supported by the new construction in the Borough s downtown. These units are being built on land that typically holds an older structure that does not utilize the maximum opportunities of the lot. Therefore the older structure is torn down for a larger building in height and square footage that accommodates renters. The total number of renter-occupied units from the 2000 Census is 9,288 units. While the total owner-occupied housing units is 2,736. Both numbers have changed since that time. Based on zoning permit and rental housing records 34 single family homes have been constructed and 157 apartment or multi-family units have been constructed since Therefore, as the number of renters increase it is anticipated the median family and household income will continue to decline. However, the renter-occupied housing does include a percentage of middle income households ($25,000 $75,000) that are renter-occupied households. The population found in this income was found to be 2,568 out of 3,799. This suggests that there are middle income households interested in living in the Borough but may have chosen to rent in order to live within the Borough. Possibly suggesting owner-occupied opportunities for middle income households are limited for these households.

20 Page 20 of 30 The Census data also suggests that there is an increase in the 45 to 54 age group and decreases in the and there is an expectation that these populations will grow. This is due to the new high density apartment buildings constructed in the downtown and the anticipated aging of the babyboomer population. This could affect the Borough s taxes. As the population ages income will be come passive under the taxes levied in the Borough and will not be taxed. The younger population will not have the income to replace the taxes lost to an aging population. Resulting in more smaller tax receipts and reduced larger tax receipts as the workforce changes in the Borough. Due to the repeal of the business tax and the use of the Homestead Exclusion, this has shifted the taxes to commercial property owners. In some cases there has been a significant increase in the tax levied on a commercial business. Business will perhaps grow concerned with this new method of assessing taxes and find it to be deterrent to do business in the Borough. The Penn State population is not anticipated to increase significantly and owners of older buildings may find it difficult to have adequate renters to occupy the building due to the construction of new apartment buildings and their more modern amenities. This will result in under utilized buildings due with high vacancy rates. Empty units are not good for business or for the community since there will be less people in the building for revenue and tax collection, as well as, the possibility of vandalism as the units become vacated and less people use those buildings as their home. It will be desirable for the Borough to provide opportunities through zoning and the Redevelopment Authority to redevelop these properties as they become obsolete. Demographic and Occupancy Patterns Using 2000 Census information the number of students in the region is 34,765. At this time the Borough had the largest population of college students with 27,314 comprising 71.1 percent of the student population. The number of owner-occupied housing units was the lowest in the Borough. As new housing developments have been built the majority have been student housing increasing the disparity of renter to owner-occupied units. Providing the means to for more affordable housing opportunities will provide a better balance of year-round residents with student residents. Encouraging residents to use the businesses that are located in the downtown year round. This has the positive impact of year round activity around the student housing. This would be one more step in establishing a more balanced resident community in the downtown. Providing for owner-occupied housing can assist in reversing the trend the declining number of family households in the Borough. In 1990 there were 3,559 in 2000 there were 3,303. This decline in households has been a trend since the 1970 s. As the family household has decline the non family and 1 person hold holds have increased significantly from 3,494 (non-family) and 1 person household (7,737) to 4,034 and 8,721 respectively in Generating and increase of percent for non-family households and a 132 percent change in 1 person households. Today there are 9,535 rental housing permits on record for the Borough. According to the 2000 US Census there were 9,281 renter-occupied units. Showing that there has been growth in the number of rental units. The number of owner-occupied units was 2,743 in According to building permit records an additional 34 owner-occupied units were built while 154 additional apartment units were constructed. This trend of decline for family households is a difficult one to tackle because there are many reasons why families relocated out of the Borough. Reasons that we do not necessarily know since

21 Page 21 of 30 the Census data just documents the loss not the reason for the move. In addition to the loss of families the family size has decreased, reducing the number per household that lives in the Borough. In per family down to per family in Using 2000 Census records the Garner District is located in Census tract 125. According to the Census there are a total of 1,450 housing units (49 vacant, 47 owner-occupied 1,354 renteroccupied. This illustrates this area has 2.3 percent of the housing is owner-occupied in this area. Suggesting that increasing the number of owner-occupied units based on the on the development scenarios would not have a significant impact on the areas renter population. However, it would provide opportunity for those who want to live in town and do not want a single family home to manage. The current conditions suggest nothing has changed in this area. The US Census also indicated there are units within these Census tracts that are substandard. Lack of complete Kitchen facilities was noted as 26 units. Increasing Commercial Space As previously noted the current tax collection system has shifted more burden to the non-residential property owners. It is anticipated that this will continue over time if the increased leasable space does not change. Redeveloping properties include increased commercial space can provide additional opportunities for property owners and perhaps over time lessen the tax burden on property owners. This would not only benefit the Borough but the Centre Region. The Centre Region Planning Agency (CRPA) has noted that there are 505 acres of commercially zoned land in the Centre Region. This land can accommodate approximately 6.6 million square feet of commercial space. CRPA staff estimated at that time that it would take approximately 12 years to absorb all of this potential development. Based on this analysis, no additional land should be zoned commercial until about Of these 505 acres of vacant commercial land in the Region, only 8 (1.5%) are located in State College Borough. Overall, the 2002 Vacant Land Inventory revealed that there were only 44 vacant acres in the Borough for all zoning designations. If the Borough is to participate in development of additional commercial land uses, it needs to provide additional opportunities for commercial development by allowing to build taller buildings and therefore increasing density in downtown. Since the actual development result for the Garner District could vary the impact analysis and the range of potential outcomes is large and our analysis will be based on a set of assumptions that tend toward worst case. The following table provides an assessment of potential employment in 3 categories, retail, restaurant, and office. These allocations are based on the assumption that retail and restaurant prefer 1st or 2nd floor space and that upper floors are more acceptable to office and residential. EMPLOYMENT CATEGORY TOTAL SQ FT PER CATEGORY EMPLOYEES PER 1000 SQ FT TOTAL EMPLOYEES MEDIAN HOURLY WAGE for 2006 ANNUAL INCOME FROM WAGES (40 HR WORK WEEK) 30% HOUSING COST (ANNUAL) 30% HOUSING COST PER MONTH RETAIL (SQ FT) $8.70 $18, $5, $ RESTAURANT (SQ FT) OFFICE (SQ FT) $6.83 $14, $4, $ $17.42 $36, $10, $905.84