HomeMy WebLinkAboutR-83-0500I - 8 I-4 31
RESOLUTION NO.
A :'.ESOLUTION AUTHORIZING THE CITY i"tANAGER
TO EXECUTE A CONTRACT, IN SUBSTANTIALLY THE.
FORM ATTACHED, BETWEEN THE CITY AND HAMMER,
SILER, GFORGE ASSOCIATES FOR THE PREPARATION
OF A DEVELOPMENT OPPORTUNITIES ANALYSIS FOR
THE SOUTHEAST OVERTOWN/PARE; WHIST COMMUNITY
REDEVELOPMENT DISTRICT, ALLOCATING FINDS
THEREFORE IN THE AMOUNT OF $40,000 FROM
SOUTHEAST OVERTOWN/PARK WEST FUND.
WHEREAS, By Resolution 83-118, the City Commission
authorized the City Manager to advertise, select and nego-
tiate a contract with a qualified economic consulting firm
to prepare a Development Opportunities Analysis for the
Southeast Overtown/Park West Community Redevelopment
District at a cost not to exceed $40,000;
N0W, THEREFORE, BE IT RESOLVED BY THE COMMISSION
OF THE CITY OF MIAMI , FLORIDA:
The City Manager is hereby authorized to execute
a contract in substantially the form attached between the
City and Hammer, Siler, George Associates for the prepara-
tion of a Development Opportunities Analysis for the Commu-
nity Redevelopment District with funds therefore hereby
allocated in the amount of $40,000 from Southeast Ovortown/
Park West Funds.
PASSED AND ADOPTED this _9th_ _ day of June1983.
ATTEST:
Maurice "A. Ferre
RA PH G. ONGIE - MAURICE A. FERRE, PIAYOR
CITY CLERK
PREPAR D AND APPROVED BY:
ROBERT�N. SECHEN
ASSISTANT CITY ATTORNEY
APPROVED AS TO FORM AND CORRECTNESS:
OSE R. GARCIA-PEDROSA
CITI' ATTORNEY
CITY C0141MISSION
MEET!M3 OF
J U N 9 1903
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TO Howard V. Gary
City Manager
CITY OF MIAMI, FLORIDA
1�T1�
Etfi-OFFICE MEMORANDUM
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1..;3 L - �y
,DAT'E.I l May 25, 1983 FILE
SUBJECT
FROM Herbert J . Bailey REFERENCES.
Assistant City Manager)
ENCLOSURES.
Authorization to execute
contract: Development
Opportunities Analysis
for Southeast Overtown/
Park West Redevelopment
Project
Pursuant to City Resolution 83-188 dated
March 18, 1983, whictr-authorized the City
Manager to advertise, select, and negotiate
a contract with a qualified economic con-
sulting firm to prepare a Development
Opportunities Analysis for the Southeast
Overtown/Park West Redevelopment District
at a cost not to exceed $40,000, a selec-
tion committee was established and the firm
of Hammer, Siler, George Associates was
recommended to and endorsed by the City
Manager. it is recommended that the
attached resolution authorizing the City
Manager to execute a contractual agree-
ment between the City of Miami and the
beforementioned economic consulting firm
be approved as per the attached final nego-
tiated contract.
BACKGROUND
The general redevelopment concept for the Southeast Overtown/Park
West Redevelopment District is directed toward the provision of
a wide range of housing opportunities within a Downtown setting,
incuding support uses necessary to serve the future population.
The District is bounded by N.W. 5th Street on the south, I-95
on the west, I-395 on the north, and Biscayne Boulevard on the
east.
The Southeast Overtown/Park West Community Redevelopment Plan
was approved by the Dade County Board of Commissioners on Decem-
ber 7, 1982. The Plan calls for the development of approximately
4,000 housing units, 600,000 square feet of office space, 500,000
square feet of retail space, 400-500 hotel rooms and the rehabili-
tation of 90 housing units. Private investment is expected to
exceed $800 million while public investments may amount to $140
million (before land sale proceeds are credited). The major
financing vehicle for the public investment program will be tax
increment revenue bonds. The Overtown Urban Initiatives area
of the District has also received a $6.8 million grant from UMTA.
83-500S
Howard V. Gary -2-
May 25, 1983
The proposed development plan, including the construction schedule,
is based upon two market studies prepared between 1978-1979. Since
that time, the framework for development, particularly the downtown
connection and demand conditions for residential and commercial
uses, has changed enough to warrant an updated analysis.
The final product of this analysis will recommend for the overall
project area: the amount of different types of development the
project area can incorporate, detailing where and when such
development should occur. The objective of this exercise is to
produce a development strategy that is financiable and implementable.
Specifically for the 6 block Overtown Urban Initatives Area, the
consultant shall prepare a separate package which includes a detailed
market feasibility analysis and proforma financial statements
for catalytic development projects recommended for the area.
The information provided will be decision oriented, enabling the
City of Miami to assess the optimal level of costs, risks and
returns commensurate with project'objectives and market forces
which support development. The finding will be used to prepare
development prospectuses (and other marketing materials) toward
the selection of project developers. Ultimately, the information
provided in the Development Opportunities Analysis will be used
to prepare documentation required for issuing tax increment revenue
bonds, mortgage revenue bonds, securing developers conventional
financing, etc.
CONSULTANT SELECTION PROCESS
The consultant selection process was consistent with procedures
of the Florida Consultant's Competitive Negotiation Act. The
selection committee included representatives from the City of
Miami, Dade County, Overtown Advisory Board, Park West Civic Asso-
ciation, and the Urban League. The committee included:
1. Michael S. Levinson
Overtown/Park West Project, City of Miami
2. Walter Pierce
Special Assistant to the City Manager
3. Adrienne MacBeth
City of Miami Minority Procurement Officer
4. T. Willard Fair
Urban League of Greater Miami, Inc.
5. George Varki
Director of Planning, Downtown Development Authority
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Howard V. Gary
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6. Bill Ogden
Park West Civic Association
May 25, 1983
7. Charles F. Johnson, Jr.
Overtown Advisory Board
8. Don Kirk
Dade County Housing and Urban Development
9. Lorraine Harris
Dade County Office of Transportation Administration
Advertisement for economic consulting services was placed in "The
Miami News" on March 23, 1983, and "The Miami Times" on March 24,
1983. The following 11 firms responded with statements of quali-
fications:
1. Real Estate Research Corp.
2. Economic Research Associates
3. Halcyon, Ltd.
4. Synterra, Ltd.
S. Hammer, Siler, George Associates
6. Gladstone Associates
7. Laventhol & Horwath
8. Reinhold P. Wolff Economic Research
9. Plantec Corp.
10. Peat, Marwick, Mitchell and Company
11. The Heritage Consulting Group, Inc.
The criteria established for evaluation included: relevant experience
in similar projects, ability of the firm to provide the requested
scope of services, name recognition and credibility with developers,
bond market and bond raters, minority representaiton, and familarity
with the Miami area, particularly Overtown.
The seven most qualified firms were invited to make oral presentations
on May 2, 1983 before the selection committee and were ranked in
the following order:
1. Hammer, Siler, George Associates
2. Halcyon Ltd.
3. Laventhol & Horwath
4. Heritage Consulting Group, Inc.
S. Economic Research Associates
6. Reinhold P. Wolf Economic Research
7. Synterra (withdrew)
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Howard V. Gary -4- May 25, 1983
It was the consensus of this committee that Hammer, Siler, George
Associates was the most qualified based on the following reasons:
- A good understanding of the assignment, and the particular
skills necessary to carry it out successfully.
- Demonstrated ability to perform market analysis for housing,
commercial office, hotels and retail development.
- A good understanding of the Miami market because of previous
work efforts.
- Name recognition and credibility with private developers,
bond brokerage houses and bond raters.
Sensitivity to community issues and needs.
It is requested that this item appear on the City Commission Agenda
of June 9, 1983.
83-5001
PROFESSIONAL SERVICES CONTRACT
This Agreement entered into as of the day of
May, 1983, by and between the City of Miami, a municipal
corporation of Dade County, Florida, hereinafter referred
to as "CITY" and Hammer, Siler, George Associates, here-
inafter referred to as "CONSULTANT".
WHEREAS, the CITY is desirous of securing profes-
sional planning services for the Southeast Overtown/
Park West Community Redevelopment Project, hereinafter
referred to as "PROJECT", which might be rendered by
the CONSULTANT; and
WHEREAS, by resolution 83-118, the City of Miami
Board of Commissioners authorized the City Manager to
advertise, select and negotiate a contract with a qua-
lified Economic Consulting firm to prepare a Development
Opportunities Analysis for the Southeast Overtown/Park
West Opportunity Redevelopment District; and
WHEREAS, the CONSULTANT holds the professional
qualifications required for these services; and
WHEREAS, the CONSULTANT is capable and desirous of
performing such services and other allied tasks as might
be desired by the CITY:
NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL
'`3► COVENANTS HEREINAFTER SET FORTH, AND FOR AND IN CONSIDER-
ATION OF THE SUM OF $40,000.00, TO BE PAID BY THE CITY
TO THE CONSULTANT, THE PARTIES HERETO COVENANT AND AGREE
AS FOLLOWS:
SUPERVISION
The CONSULTANT shall be under the General Super-
vision of the Director of the Southeast Overtown/Park West
Project Office (Assistant City Manager) and the direct
supervision of the Financial Development Administrator of
the Southeast Overtown/Park West Project Office.
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SCOPE OF WORK
1. The CONSULTANT will provide preliminary market
demand information for the preparation of the Southeast
Overtown/Park West Development of Regional Impact statement.
2. Attached hereto and, by reference, made a part
hereof, the "SCOPE OF WORK" delineated in pages One (1)
through Nine (9) (Exhibit "A") comprise the services to
be performed by the CONSULTANT.
3. The final submissions of all documents and
reports required under No. 2 (above) shall be delivered
to the City within three months after the execution of
this contract.
METHOD OF PAYMENT
1. Upon certification by the Director of the South-
east Overtown/Park West Project Office (Assistant City
Manager and the financial Development Administrator of
the Southeast Overtown/Park West Project Office that the
CONSULTANT has completed any of the tasks enumerated in
the "SCOPE OF WORK" (Exhibit "A") as numbers I through VII,
the City shall compensate the CONSULTANT upon presentation
of invoices, in the following manner:
Upon the completion of each and everyone of
the
following tasks the amount listed immediately to
the right
of the tasks shall be paid.
Task
I.
Review of Existing Plans and Market Studies
$1,800
Task
II.
Land Value Analysis
2,000
Task
III.
Assessment of Economic Framework
1,000
Task
IV.
Market Analysis
26,500
Housing - $8,500
Office - 8,000
Retail - 5,000
Hotel - 50000
Task
V.
Overtown Station Demand
6,000
Task
VI.
Other Project Area Demand
1,500
Task
VII.
Revenue Analysis
1,200
Total
$40,000
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83-50C,
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2. Other than that enumerated above, totalling
$40,000, no other charges shall be made by the CONSULTANT
to the CITY for excessive mandays, overhead, travel, or
any such fees or expenses.
EXTENT OF EMPLOYMENT
Both parties agree that the CONSULTANT shall not
in any manner be considered an employee of the City of
Miami; he shall not be entitled to any benefits of any
form or nature from the City of Miami other than the
compensation recited above.
In the event that the CONSULTANT shall in the future
be appointed to employment within the ranks of the City
of Miami, he shall not accrue any seniority or other
emoluments connected with such employment by reason of
the services rendered under this contract.
INDEMNIFICATION
CONSULTANT shall indemnify and save the CITY harmless
from and against any and all claims, liabilities, losses,
and causes of action, which may arise out of CONSULTANT'S
activities under this contract, including all other acts
or omissions to act of CITY, its officers or employees,
and from and against any orders, judgments or decrees which
may be entered and from and against all costs and attorney's
fees, expenses and liabilities incurred in the defense
of any such claims, or the investigation thereof.
NON-DELEGABILITY
It is understood and agreed that the obligations
undertaken by the CONSULTANT pursuant to this Agreement
shall not be delegated to any other person or firm unless
the CITY shall first consent in writing to the performance
of such services or any part thereof by another person
or firm.
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2. Other than that enumerated above, totalling
$40,000, no other charges shall be made by the CONSULTANT
to the CITY for excessive mandays, overhead, travel, or
any such fees or expenses.
EXTENT OF EMPLOYMENT
Both parties agree that the CONSULTANT shall not
in any manner be considered an employee of the City of
Miami; he shall not be entitled to any benefits of any
form or nature from the City of Miami other than the
compensation recited above.
In the event that the CONSULTANT shall in the future
be appointed to employment within the ranks of the Citv
of Miami, he shall not accrue any seniority or other
emoluments connected with such employment by reason of
the services rendered under this contract.
INDEMNIFICATION
CONSULTANT shall indemnify and save the CITY harmless
from and against any and all claims, liabilities, losses,
and causes of action, which may arise out of CONSULTANT'S
activities under this contract, including all other acts
or omissions to act of CITY, its officers or employees,
and from and against any orders, judgments or decrees which
may be entered and from and against all costs and attorney's
fees, expenses and liabilities incurred in the defense
of any such claims, or the investigation thereof.
NON—DELEGABILITY
It is understood and agreed that the obligations
undertaken by the CONSULTANT pursuant to this Agreement
shall not be delegated to any other person or firm unless
the CITY shall first consent in writing to the performance
of such services or any part thereof by another person
or firm.
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83-56C,
CONSTRUCTION OF AGREEMENT
The parties hereto agree that this Agreement shall
be construed and enforced according to the laws, statutes
and case laws of the State of Florida. The use of the
term "he" shall be considered, for the purposes of this
Agreement, to include all genders.
OWNERSHIP OF DOCUMENTS
All writings, diagrams, tracings,charts, and
schedules developed by CONSULTANT under this Agreement,
shall be delivered to the CITY by said CONSULTANT upon
completion of the work and shall become the property
of the CITY, without restriction or limitation on their
use. CONSULTANT agrees that all documents, records and
reports maintained and generated pursuant to this contractual
relationship between the CITY and CONSULTANT shall be
subject to all provisions of the Public Records Laws,
Chapter 119, Florida Statutes.
It is further understood by and between the parties
that any information, writings, maps, contract documents,
reports or any other matter whatsoever which is given by
the CITY to the CONSULTANT pursuant to this Agreement shall
at all times remain the property of the CITY and shall not
be used by the CONSULTANT for any other purposes whatso-
ever without the written consent of the CITY.
COMPLIANCE WITH FEDERAL, STATE AND LOCAL LAWS
Both parties shall comply with all applicable laws,
ordinances and codes of Federal, State and Local Governments.
Specifically, the CONSULTANT agrees to comply with Title
VI of the Civil Rights Act of 1964; Title VIII of the
Civil Rights Act of 1968; Executive Order 11063; Executive
Order 11246; Section 3 of the Housing and Urban Development
Act of 1968, as amended; the Anti -Kickback Act, Title
%VIII, U.S.C. Section 874, OMB Circular No. A-102 Revised;
and Federal Management Circular 74-4.
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RIGHT TO AUDIT
The CITY shall have the right to review and audit
the time records and related records of the CONSULANT
pertaining to any billings to the CITY for time or•
expenses for a period of up to one year after final
payment.
AWARD OF AGREEMENT
1. The CONSULTANTS warrant that they have not
employed or retained any Company or persons to solicit
or secure this Agreement and that they have not offered
to pay, paid, or agreed to pay any person or Company any
fee, commission, percentage, brokerage fee, or gifts of
any kind contingent upon or resulting from the award of
making this Agreement.
2. The CONSULTANTS are aware of the conflict of
interest laws of the City of Miami (Miami City Code
Chapter 2, Article V), Dade County, Florida (Dade County
Code, Section 2-11. 1)- and'the Florida Statutes, and agree
that they will fully comply in all respects with the
terms of said laws.
CONFLICT OF INTEREST
1. The CONSULTANT covenants that no person under
its employ who presently exercises any functions or
responsibilities in connection with this Agreement has
any personal financial interest, direct or indirect, in
this Agreement. The CONSULTANT further covenants that,
in the performance of this Agreement, no person having
such conflicting interest shall be employed.
2. Any such interests on the part of the CONSULTANT
or its employees, must be disclosed in writing to the
CITY. The CONSULTANT, in the performance of this Agice-
ment, shall be subject to the more restrictive law and/or
guidelines regarding conflict of interest promulgated by
federal, state or local governor nt.
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AMENDMENTS
The CITY may at its discretion, amend the Agreement
to confirm with changes in applicable, City, County, State
and Federal laws, directives, guidelines and objectives.
No amendments to this Agreement shall be binding on either
party unless in writing and signed by both parties. Such
amendments shall be incorporated as a part of this Agree-
ment upon review, approval and execution by the parties
hereto.
TERMINATION
The CITY retains the right to terminate at its
discretion this Agreement by written notice to the
CONSULTANT of such intent to terminate at least two (2)
weeks prior to the effective date of such termination.
Such right to terminate prior to the completion of the
effective term of Agreement or of the work shall be
without penalty of the.CITY': If through any cause, the
CONSULTANT shall fail to fulfill in timely and proper
manner its obligations under this Agreement, or shall
violate any of the covenant agreements, conditions or
stipulations thereof as determined by the CITY, the
CITY shall thereupon have the right to terminate this
Agreement by giving notice to the CONSULTANT of such intent
to terminate at least five (5) days prior to the effective
date of such•termination.
In the event either party cancels this Agreement,
the Compensation shall be paid relative t•b the percentage
of work completed to that date in accordance with the
date scheduled above.
S ZB- CONTRACT
The CONSULTANT agrees that no assignments or Sub -
Contractors will be made or let in connection with the
Agreement without the prior written approval of the City
and that all such Sub -Contracts -or assignee shall be
governed -by the terms and intent of this Agreement.
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ADMINISTRATIVE AND LEGAL REMEDIES
Should the CONSULTANT violate or breach the terms
of this contract, the CITY shall determine the appropriate
legal or administrative action to be taken and penalties to
be assessed.
This contract shall become effective beginning
immediately on the date of execution by the City Manager and
continue for ten weeks or upon completion of the work described
above, unless notice is given by either party of a new termi-
nation date.
IN WITNESS WHEREOF, the parties have executed this
CONTRACT this day of , 1983.
WITNESSES:
..
ATTEST:
RALPH G. ONGIE, CITY CLERK
HAMMER, SILER, GEORGE ASSOCIATES
CITY OF MIAMI, A MUNICIPAL
CORPORATION OF THE STATE OF FLORIDA
BY
HOWARD V. GARY, CITY MANAGER
APPROVED AS TO FORM AND CORRECTNESS:
JOSE R. GARCIA-PEDROSA,
CITY ATTORNEY
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SCOPE OF WORK
I. Review of Existing Plans and Market Studies
As background for undertaking the analysis, HSGA will review all
existing plans and market studies prepared for Park West, Overtown and
the general downtown area. This task will not only provide a reconnais-
sance of past and present market conditions and economic influences in
the study areas, but will assist the consultant in determining what
research is necessary to update relevant information and what new
research investigative tasks are required in order to provide a complete
data base for evaluating and projecting market potentials.
II. Conduct a land Value Analysis of Property Within the Project Area
An analysis of land and building trends in the Park West and
Overtown areas will be conducted to determine the cost parameters of
land acquisition for project developments. Through an analysis of sales
comparables for parcels of land in the project area and vicinity, land
value estimates will be made. The land value estimates will include
adjustments for size, location, use and restrictions on use, and other
considerations, in the determination of comparable values.
III. Assessment of the Economic
Mantial of the ralect Area
Framework Affecting Development
Economic factors influencing the attractiveness of the project area
for land use development will be closely evaluated and the likely impact
of these• factors will be assessed. Considerations here include: an
assessment of the project area's role in the overall downtown
N A r r IN. A ILE A. A 1 A A A 1 A f A 6 Q 1 A f 1 A
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market potentials (by use categories) and within the framework of
existing and emerging and locational patterns of new development;
anticipated rapid transit impact, especially in providing linkage of the
project area to major economic activity centers; accessibility to major
highways and the linkages provided by these; a comparison of land values
in the project area to nearby competitive locations; and the general
quality of housing within a defined sphere of influence.
These economic factors will be assessed not only for existing
impact, but the anticipated impact they may exert based on expected
market changes over the next several years.
IV. Market Analyses
A. Housing Market Analysis
A market analysis will be undertaken to determine the
feasibility of residential uses within the project study area.
HSGA will analyze demographic trends in the Miami metropolitan
area and the Park West-Overtown subareas which are pertinent
for projecting housing demand. This will include changes in
population, both past and projected; changes in households,
including household size changes and household forecasts for
the market areas; and household income trends and forecasts for
the market areas. In addition, we will analyze housing unit
trends for the region and Park West-Overtown subareas, and,
analyze trends relating to the number of units sold by type and
price of unit, and the rental units absorbed by type and mix
for the market areas.
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Based on a careful evaluation of the market and An
consideration of the concept for redevelopment, the findings of
the land value analysis, and the economics of real estate
construction, we will project future housing demand potential
for development in the Park West-Overtown project area. In
performing this task, capture rates will be developed for the
study area which will be ultimately translated to reflect
demand by type, unit mix, sales/price structure and amenities.
A development phasing plan will be recommended which will
indicate the distribution of demand for key study years to
2000.
B. Office Space Analysis
The potential for office space development will .focus on those
portions of the project area which interface with the
Government Center, the Overtown Transit Station and Biscayne
Boulevard. The potential for office space will be determined
through the following type analysis. In most cases, the office
market potential for an area is determined through a comprehen-
sive analysis of trends and interactions relating to employment
growth, office space .construction, an evaluation of the eco-
nomic forces affecting the development of office space and its
locational preferences tied to careful forecasts of future
employment and net new office space demand and support activi-
ties. Employment trends for the Miami metropolitan area will
be analyzed over the next 17 year period which will include the
probable capture by the study area submarket. Office space
activity will be analyzed, including the distribution of new
office space construction in portions of the region and the
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present shares now being captured by the downtown and project
areas. (For the purposes of the analysis the project area may
be considered a part of the future downtown submarket since
past development has not been significant in the study area.)
The geographic market patterns of office construction as well
as other factors such as rental rates, the types of office
users and other considerations will be evaluated.
There are other factors whirh will also be taken into account,
including the expected rate of employment growth for the study
area, the extent of economic based diversification, the
probable cost of office space, financing considerations, recent
absorption trends within the area, and the probable
environmental conditions and images that will affect office
development within the study area's sites. Net new office
demand will be calculated for the study area in terms of square
footage requirements. Absorption potential for office space
will be calculated in increments up to the year 2000.
C. Retail Analysis
A retail space analysis will be conducted for the Park West-
Overtown study areas. This will consist of three essential
steps. The first step will be the delineation of the trade
area. We will define this as being an area from which 80
percent or more of the sales support will be generated for
pruposed site retail facilities on a sustained basis. The
trade arty configuration will be influenced by such factors as
the type of enter most likely supportable based on a recon-
naissance of the study area. Specialty, community and/or
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neighborhood shopping centers have varying physical charac-
teristics and serve distinctly different populations. Once the
trade area is defined for the appropriate facilities, HSGA will
then proceed to the next step.
The second step in the process will be the collection of data.
Essentially, these data will be United States Census informa-
tion which will be utilized to construct trade area trends in
population, household formation, average household income, and
household expenditure characteristics (by designated retail
categories). These trends will then be projected for selected
future study years to 2000. The second source of data that we
will emphasize in this process will be an inventory of competi-
tive retail centers through a field investigation with a list-
ing of location, size, date of opening, major tenants, and
estimated sales and sales capacities. Additional data will be
obtained in terms of expected transit ridership figures and how
they might impact on the overall retail market.
The third step in the process will be to conduct an analysis of
the market potential. The retail potential will be analyzed
for the appropriate type of shopping areas and for the kinds of
retail categories normally found in those type settings.
Demand for retail facilities will be projected on the basis of
expenditure potential by retail categories which could be
generated by future trade area residents. The market shares
and their potential for the Park West-Overtown study area will
be determined on the basis of trade area growth characteristics
measured against the strengths and competitiveness of existing
and planned retail facilities of a comparable nature and size.
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Included in this consideration will be the ability of the
subject site to capture a satisfactory share of retail sales as
a result of household and employment growth, promotions and
other economic factors. Retail sales potential for the study
area will then be translated into square footage by individual
retail categories, which are needed to justify the available
market potential. The floor area potential for the various
retail categories justified by the market will then be reviewed
in terms of what should be -recommended in order to create a
balanced retail development which will harmonize and be
compatible with other land uses projected for the area.
Specific recommendations would then be made as to the placement
of such facilities, including the 9th Street Mall, and included
therein would be the total square footage requirements for
retail facilities.
To the extent that the analysis results offer support, a major
theme for the 9th Street Mall will be determined.
D. Hotel Analysis
The hotel analysis for the project area will be tied to the
overall downtown market potential.. The first task will be a
field investigation concerned with gathering market data on
existing and planned hotel/motor inn operations in the downtown
and study area markets. Within this task, HSGA will evaluate
basic market factors aimed at determining the current experi-
ence for hotel/motor inn operations and the extent to which the
downtown and Park West-Overtown areas are. adequately or
inadequately served by existing facilities.
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Specifically, we will document the total competitive structure
of the hotel/motor inn market in downtown and the project area.
For each major facility (100 or more rooms), we will determine:
(1) the major sources of occupancy (commercial/business,
tourist, convention/meetings, or highway oriented); (2) the
major generators of these patronage sources (industries/
business, natural and/or tourist attractions, type of conven-
tions/meetings, etc.); (3) the annual average occupancy levels;
(4) rate structure; .and 15) amenities and other operating
characteristics as revealed by management interviews.
Key questions to be answered by the field investigation
include: what kind of occupancy is being generated from each
source for each competitive facility; what factors are
determining the choice of hotel/motor inn; what kind of growth
can be anticipated for each generator source over the next
years; and what new business may locate in the area and where,
etc.
It is also important to determine: the extent of meeting and
banquet facilities space available at existing facilities and
its utilization; the exact rate structure and the annual rate
at which guest room rates are increasing; the extent to which
certain amenities are required to ensure successful operation;
and other pertinent aspects of the operation of the existing
competitive facilities.
As part of the work, we will also investigate what competing
new hotel/motor inn sites are likely to be developed in the
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market in the next few years and the impact they will have on
the overall market demand.
An examination of the exact market base of the local hotel/
motor inn housing industry and its prospects for future growth
(by market support sources) will then make it possible to
examine the competitiveness of the Park West-Overtown project
area in obtaining future iparket shares, by generator sectors,
of the hotel/motor inn room demand.
The market demand analysis will result in a recommended room
development schedule (perhaps staged) and a projected occupancy
profile for hotel/motor inn facilities, as appropriate to the
year 2000. Estimates will also be made of the room rate
structure that will be acceptable as well as indicate the
number and size/flexibility of meeting rooms required and the
necessary amenities which must be provided to ensure a maximum
competitive position for any new facility.
V. Overtown Transit Station Demand
The housing, office, retail and hotel demand analysis in Part IV
will provide a development schedule of land uses, densities, etc., for
the overall Park West-Overtown study area (except where otherwise noted,
such as in the office analysis). This task will refine those results
and be concerned with estimating the land use demand, by categories,
which can be accommodated within a defined rapid transit station impact
zone. An evaluation of the market influence of the rapid transit system
and station will obviously be a key factor in this assessment.
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Recommendations will include the amount of various types of development
the station impact zone can absorb for selected key years to 2000.
VI. Other Project Area Demand
Finally, the analysis will recommend the amount of various types of
development that the remaining (non -station impact area) Park West-
Overtown project area can absorb for selected key years to 2000 at
specific locations, to the extent appropriate.
VII. Revenue Analysis for Potential Tax Increment Financing
The Southeast Overtown/Park West Redevelopment Project concept
anticipates the use of tax increment financing as a major resource tool.
It will, therefore, be important for the consultant to begin that
process through a projection of development value likely to be generated
by our market absorption rates. Development values will, therefore, be
estimated for each increment of the absorption period. These findings
can then be utilized to project the tax increment likely to occur to
support anticipated bond sales.
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