Economic Redevelopment of Underutilized Parcels May 16, 2012 Northland Arboretum Brainerd, Minnesota
Matt Glaesman City of St. Cloud Community Development Director 1. A Tradition of Change 2. Why Now? 3. Moving Forward 4. Investing in Downtown Vitality 5. Guiding the Future 6. Prioritizing Limited Resources
Downtown Investment - 2002-2012 Public Police Station $36M Rivers Edge Convention Center $22M Herbergers Ramp $3M TH23 Improvements $32M Great River Regional Library $36M Lake George/Eastman $3.6M Private ING Coborns Plaza/SCSU Welcome 5 th Avenue Live Building Expansion (e.g.,tri-county Abstract) Building Renovations (e.g., Mahowald) Hotel Renovations (e.g., LeStGermain) New Restaurants (e.g., Cowboy Jack s)
Economic Impact of Public Construction Public projects are a powerful engine to put some of the hardest hit sectors of the economy (construction and manufacturing) back to work. For every $1 million spent on infrastructure, $1.6 million additional is in turn generated, and 19.5 jobs get created in the economy. These jobs impact every segment of the economy, from contractors and suppliers, to grocery clerks and manufacturers. Center On Policy Initiatives
Economic Impact of Public Construction St. Cloud s River Edge Convention Center estimated to create: $11,000,000 of building construction for $26,000,000 project 271,500 hours worked on building construction 288 full-time job equivalents Prevailing wage expected to be $41 per hour Additional economic benefit from $15,000,000 of professional services and related construction (street and utility improvements, architectural services, etc.)
Favorable bid climate Engineer s estimates have been lowered 7 to 10%. Still seeing bids under engineer s estimates: Wastewater Plant Expansion (2010) 9% under Water Plant Expansion (2008) 31% under (2010) 17% under Civic Center Roadway/Utility (2010) - 17% under East Lake Boulevard Improvements (2010) - 8% under 25 th Avenue North Improvements (2011) 14% under Neighborhood Revitalization Project (2011) 4% under University Drive Roundabout (2011) 19% under 41 st Avenue North Construction (2011) 18% under Stormwater Retro-Fit/Rain Gardens (2011) 17% River Bluff Regional Park Trail (2011) 20% under
Interest Rates
St. Cloud Regional Library
Law Enforcement Center
River s Edge Convention Center
5 th Avenue Live Coborns Plaza
ING Direct Expansion
St. Cloud Hospital Expansion
Lake George/ Eastman Park
Property Taxes by Land Use Lot Area: 126,490 sf/2.9 ac Building Area: 30,786 EM Value: $1,615,000 Value/Acre: $556,896/ac Lot Area: 20,955 sf/.48 ac Building Area: 75,735 sf EM Value: $6,394,000 Value/Acre: $3,069,120/ac Lot Area: 15,000 sf/.34 ac Building: Single Family EM Value: $150,000 Value/Acre: $441,176/ac
Property Taxes CBD and Highway Districts $58,104 Total Taxes $14,578 City Taxes $232,858 Total Taxes $58,659 City Taxes
Property Taxes per Acre CBD and Highway Districts $20,035 Total Taxes/Acre $5,026 City Taxes/Acre $485,120 Total Taxes/Acre $122,206 City Taxes/Acre
Jobs per Acre CBD and Highway Districts 50 jobs @ 2.9 acres 17.1 25 jobs @.48 acres 52 499 jobs @.48 acres 1039.5
Impact of CBD Redevelopment For 30 years this property remained vacant underutilized.... estimated market value of the four buildings in 1996 was $606,000 Today, the building is valued at over $6,394,000; an increase of more than 1000% in 16 years $30.30 per square foot $319.70 per square foot
Value of Downtown Land Consumed (Acres) 2.9.48 Total Property Valuation $1,615,000 $6,394,000 Total Property Valuation per Acre $556,896 $3,069,120 Total Property Tax per Acre $20,035 $485,120 Total City Property Tax per Acre $5,026 $122,206 Residents per Acre 0 0 (but potential!) Jobs per Acre 17.1 1,039
Downtown Housing Downtown is the place to be for an exciting, diverse, and sophisticated experience based on living, working, and shopping. Downtown will reach out to market niche segments: - Culture - Entertainment - Home and arts - College and university The focus must be on growing the demand side on a short, mid, and longterm basis: Need intense, better income residential in and adjoining Downtown...
D. Contemporary Village University, Entertainment Location: 5th Avenue Target market: young, contemporary urban sophisticates, and college students Commercial mix: anchored by Pioneer Theatre, Red Carpet, and, to a certain extent, the Campus Bookstore south of Division Street/Trunk Highway 23 Add: college shop, jeans, junior apparel, computer and software, interesting and funky accessories, bookstore, small home furnishings (e.g., futon), organic food, health food, green grocer, vegetarian restaurant, bakery Opportunity: expand the diversity of eating and drinking operations to remain relevant, make this the key place for SCSU students to shop and eat, 5th Avenue will be a major corridor leading into Downtown specifically from SCSU
Downtown West Bank The proposed riverfront promenade suggests creating stronger civic space along the riverfront by creating plazas and grand stairs at the bridge heads. The promenade could be an interconnected series of spaces that provide space for outdoor dining, casual gatherings, riverfront festivals, amenities for hotel guests, downtown workers and residents, and Civic Center visitors.
Cathedral Field The proximity to the water s edge creates a unique setting for boat access, shoreline fishing, and other water activities. The gradual slope rising from 5th to 6th Avenues No. forms another unique opportunity to meet the needs for large riverfront community assembly space. Active uses (plays, concerts, etc.) can be programmed throughout the year in a permanent amphitheater built with the sloping terrain.
Public Investment in Redevelopment Public Improvements: Utilities, Technology, Amenities Roadway Improvements: Reconstruction, Realignment, Expansion, Removal Site Acquisition: Negotiated or Condemnation Clearance: Building Removal, Hazardous Materials, etc. Site Corrections: Soils, Contaminants, etc.
Capital Improvements Plan as Prioritization Tool Management tool for City staff, and elected and appointed officials Provides valuable information to the citizens, developers and businesses who are interested in the development of the community. The CIP document also assists in leveraging available resources through improved timing of projects, and coordinating City projects with those of other public or private entities.
Benefits and Advantages The CIP will prevent premature development of areas and prevent excessive costs and demands on the City in providing services and extending utilities. The CIP will help to achieve a more balanced development of projects so as to avoid concentration or overemphasis upon any single project. The CIP makes project lists available to other governmental agencies, private utilities, private investors, and other industries, upon which they may make sounder judgments concerning their own programs.
CIP Projects by Function and Expenditure
CIP Projects by Function and Program Year
Project summary completed for all CIP projects detailing project: Cost/revenue projections Project description Project justification Comprehensive Plan compliance City Council goal compliance Project history, Budget implications Staff contact Document web link Location map
Planning Analysis - Planned Growth Boundary
Planning Analysis - Future Land Use
Financial Analysis - Accuracy of Revenue Projections
Informing Public and Private Decisions
Creative Financing Examples of traditional and new financing mechanisms: Cash Tax-exempt bonds Build America Bonds Recovery Zone Economic Development Bonds and Facility Bonds Small Issue Industrial Development Bonds Several New Tax Credit Bonds Others Contact your financial advisors
Matt Glaesman Community Development Director matt.glaesman@ci.stcloud.mn.us