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HomeMy WebLinkAboutCC 1979-01-16 Discussion Items & MotionsMENN CITY.,.COMMISSION WORKSHOP 5t$5!Ol.:w Tues4ay3dahuaty:16,-1D79 aim, COMMIT Et bP _THE WHOLE. ROOM presentation by Office of Trade and Commerce Development onDconontic Development program for City of Miami. presentation by Newall baughtrey and Dena Spillman Oh Culmer Projects, including Housing, Public Improvements Interim Assistance, and support services Discussion of Joint Development Opportunities around Transit Stations at Douglas Road and New Washington Heights Discussion of Miami River Crossing Alternatives, and DuPont Plaza Improvements in the downtown area. p0t./GGAS )Qc7.40 TR/4NS/7- .5 re4 T/O / sTATfoN NAME: OOATIoN: TRANSIT STATION. b s012IPT10N e. DEVELOPMENT OBJECTIVES: i'Souglas Road The Douglas. Road transit station is located oh the south leg of the Phase l alignment` at the northwest corner of the ihtersect:on of bouglas Road (SW 35th Ave) and South Di3 ie i#ighway (US1) . This site is within 1 mile of the rapidly growing business districts of Cora. Gables and Coconut Grove The Douglas Road station is situated near several Major arterials (Bird Road, Le Jeune Road, ponce de Leon, Douglas Road, and tsi) enabling it to serve large areas of Coral Gables, Coconut Groove, Westchester, and the Douglas Park/Shenandoah neighborhoods in Miami. The station will be designed to serve over 11,000 patrons daily by the year 2000, Approximately 59 percent of these patrons are projected to arrive by local feeder buses and an additional 23 percent by automobile. Long term surface parking will be provided initially on the site; however, year 2000 projections indicate demand for a parking garage to accommodate 1300 vehicles. 26 kiss and ride spaces and 6 bus bays are also planned for the station. To diversify the land Uses through development of office, specialty service, retail, entertainment, and cultural arts activities. To increase the density of employment and business/ service related trip attractions within walking distance of the station in order to encourage transit ridership. To realize value capture objectives through an in- creased tax base. To provide alternative housing opportunities within the City for moderate income persons. To remove blighted structures and economically unproductive land uses. B tOdteT BE8dRfPti0M To provide attethatiVe inVesttiteht opportunities to adjacent h3 h dobt iitatkets ih total tables attd docontit dti5Ves The proposed redevelopment projeet inVblVes pttblit assistance with land assetblage, te1odation and cleatance along with important public infrastructure and environmental itiiproVettents such as street Widening,drainage, landscaping, and pedestrian connections: proposed zoning changes will permit a Wide Variety of high intensity Uses+ A May 1978 study by Gladstone Associates, economic consultants, predicts a market for 300=40o rental housing Untis, Up to 150,000 sc4Uare feet of office space, and up to 25,000 square feet of retail. SITE The 7 blocks west of the Douglas Road transit AVAILABILITY station present the primary redevelopment opportunities (SW 38th AVc to SW 39 Ave, Bird Rd to US1) Estittated land cost is $4 to $5 per square foot, with total acquisition of land and improvements estimated at $11.3 million. There are nearly 50 individual property owners within this redevelopment area, however, there are several parcels of 1 acre or more. SURROUNDING The Douglas Road station and adjacent redevelopment AREA: area are located in a small industrial triangle bounded by Bird Road, Le Jeune Road, and US1, To the north and west of the industrial area are high quality residential neighborhoods. South of US1 is the largely Black populated Coconut Grove Community Development Target Area, which is currently undergoing intensive renewal activities aimed at stabilizing the community as a low density moderate income residential area. PROJECT DEVELOPMENT Dade County in cooperation with the City of Miami PROCESS and Coral Gables is currently seeking federal assistance through the UMTA Young Amendment program to provide funds for public land acquisition and clearance, as well as needed public infrastructure improvements. Assembled parcels will be marked for private development. SELECTIVE CLEARANCE I AND REPLACEMENT WITH LOW DENSITY HOMEOWNER HOUSING $H1PPIi PERCIVA FLORIDA 4 i11►1 1111n(? A MARKET RECONNAISSANCE-A0LYSIS AND DETERMINATION OF. DEVELOPMENT OPPORTUNITIES FOR THE OVERTOWN SECTION OF. MIAMI, FLORIDA PREPARED BY: GLADSTONE ASSOCIATES ECONOMIC CONSULTANTS MIAMI, FLORIDA PREPARED FOR: THE CITY OF MIAMI PLANNING DEPARTMENT JANUARY 1979 OBJECTIVES PROVIDE A MARKET FRAMEWORK FOR'. REDEVELOPMENT PLAN HIGHLIGHT DEVELOPMENT POTENTIAL OF AREA BOUN ARIEs CHARACTERISTICS .AND CONTEXT SPECIFIC STUDY AREA BOUNDARIES CHARACTERISTICS POPULATION INCOME RACE VACANCY RATES HOME OWNERSHIP HOUSING CONDITION UNEMPLOYMiENT. CONTEXT 1. Overtown Study Area 2. Downtown Miami 3. Government Center: Dade County City of Miami - State Building - Police Headquarters 4, Planned Washington Heights Rapid Transit Station Site 5. Proposed New Town -in -Town 6, Civic Center 7. Dorsey -Wheatley Area $, Culmer Village Elderly Housing 10. Proposed Convention Center/Hyatt House 11. ED-COM 12. Expansion of U.S. Courthouse 13. U.S. Post Office 14. Planned Government Center Rapid Transit Station Site 15. Planned Culmer Rapid Transit Station Site 16. Omni 17. Plaza Venetia FIH INGS NEGATIVE POSITIVE DEVELOPMENT POTENTIAL AND STAGING OFFICE RESIDENTIAL RETAIL HOTEL/MOTEL INTERVENTION NECESSARY TO GUIDE PRIVATE SECTOR AND MINIMIZE NEGATIVE IMPACTS ON COMMUNJITY 1 1 1 1 1 1 1 1 UE.VELOPHENT ISSUES PLANNING LAND ACQUISITION AND RELOCATION PROMOTING RETAIL DEVELOPMENT TRANSIT JOINT DEVELOPMENT PARKING IMPACT ON EXISTING RESIDENTS A MARKED' RECONNAISSANCE ANALYSIS AND DETERMINATION OF DEVELOPMENT OPPORTUNITIES FOR THE OVERtOWN SECTION of MIAMI, PLORIDA Prepared for: THE CITY OF MIAMI PLANNING DEPARTMENT January 11, 1979 Prepared by: Gladstone Associates Economic Consultants t1iami, Florida gectioh INTRODUCTION SUMMARY F1NDINGS Pago Overall Program and Phasing Recommendations iv Office Development Potentials Residential Development Potentials vi Retail ' Development Potentials , vi i i Hotel/Motel Development Potentials ix METHODOLOGY STUDY AREA OVERVIEW 1 Community Description 1 OVERVIEW OF FORCES INFLUENCING REDEVELOPMENT 6 Government Center 7 U.S. Post Office 8 The City of Miami; 8 State of Florida Regional Service Center 8 Federal Building 9 County Cultural Center lO Dade County Administration Building 10 Transit Station DEVELOPMENT OPPORTUNITIES BY LAND USE CATEGORY 11 Office Residential Hotel Retail xi 11 14 18 . 20 DEVELOPMENT ISSUES AND STRATEGIES 25 Public -Participation 25 Need for Follow -Up Studies 28 Impact on Existing 0vertown Residents 28 INTRODUCTION i and. INT1100UtTION Thi's report provides a market framework for the preparation of a redevelopment plan for the Overtown area which is located in downtown Miami adjacent to Government Center and the planned Washington Heights transit station. For each of several land uses (office; retail, resi. dential, hotel), development potentials -- including approximate quan- titles, phasing, conditions affecting the achievement of potentials development issues and strategies -= have been identified. The Overtown impact area as defined in this study encompasses the area immediately to the north of Government Center, between N.W 6th and llth Streets and N.W. 1st Avenue and I-95. It constitutes a sub -element of the Culmer section of Miami, which includes areas west and north of Overtown. Because of budget constraints, conclusions have been based on published data and reports concerning the Overtown area as provided by the City of Miami Planning department, as well as on original market research and the experience of Gladstone Associates in analyzing similar development markets in Miami and other cities throughout the United States. The reader should bear in mind that the analysis conducted is of a reconnaissance nature and should not substitute for more detailed studies of development potentials for specific sites or uses. In addition, the study did not address social problems and solutions or programmatic. responses to solving; problems affecting the Overtown study area. SUMMARY FINDINGS Visual inspectioh reveals the 'study area •to be in badly deter- iorated. The retail strip along N.W2nd Avenue has suffered ft'om lack market support, and most stores Oro vacant, Only iinvited cont 'venience commercial uses remain, and many are marginal -operations, The area has suffered •abandonment and population•out-migrations although the development of some•netuu assisted housing for low and moderateincomefamilies_has encouraged some• residents to remain in the area. . Mott social indicators reveal the area is.one of the worst in the City. 5.. 0n the positive side, the area borders, or is located near, several strong growth areas -- both•existing and proposed. 6. As the -result of existing activities and•near-term plans,. parts of • 0vertown.have significant development potentials.- Speculation in the area has already -begun, and. developer interest can be con- sidered strong The major' factors•influencing the future development of.0vertown are: the massive Government Center project already in execu- tion that will produce about 10,000 public jobs when completed by the late'1980's; the proposed development of a new town -in -town just east of Overtown, adding thousands of higher income households to the north central Miami area; c. the construction of a rapid transit system, with a station in the 0vertown area; -11- planned expansion of the tiV c Center tbmplex Of hosh pitals and public jobs located west of the study area; e, planned expansion of the nearby tbCOM complex; the surging Miami economy geared to international busi= nets, the development of a major conVention facility in the Ct3b, increasing visitation to the City and other tomr»er dal demands; and h, the general strength of the retail economy in Miami's Cab In our judgement, the existing neighborhood cannot remain intact because of its poor physical condition and the pressures for ,development from the private sector. The declining social and physical conditions in Overtown will likely continue in the future, Massive public intervention might have some impact. However, the lack of success of many U.S. cities in the late 1950's and the. 1960's in using urban renewal and massive public programs to stave off continued rapid deterioration of blighted neighborhoods, reveals tha t there is no guarantee of improving a neighborhood like 0vertown We believe private development pressures toward the creation of a new environment are already being felt and will continue to increase as the activities and forces listed above move closer to execution and completion. 10. The results of our reconnaissance market analysis reveal that new development potentials exist in the southern portion of 0vertown for several major private market land uses, including: a. office b, residential c. retail d, hotell and transient facilities The amount of demand may vary as will the desired end product. i 11, because of the irrevocable cofditiOfis in the Overtawn area and the level Of defnand for new development, we believe a program of pub1 i t assistance to encourage and guide new development it called for, atone with a similar program to deal with the needs of the residents of the Culmer-Overtown area, the City has already made progress in these areas in conjunction with its Community Development program, and more monies have already been allocated for additional projects as part of this program, Failure to act will likely result in the violent uprooting of area residents by the private sector, possibly a hodge-podge of new development and a failure to take maximum advantage of new develop- ment opportunities; 13. Redevelopment of Overtown will likely result in a variety of benefits to the residents and property owners of the larger Culmer community.. Possible benefits include increased job opportunities and shopping availability, spillover retail support and land value appreciation, reduced crime rates, and enhanced likelihood of private investment. Overall 'Pro gram and Phasing Recommendations 1. Redevelopment of the Overtown area can and should begin as soon as possible. 2. Building on the development momentum of Government Center and on the proximity of the transit station, much of the earliest develop- ment should be focused on the southeastern portion of the area. 3. In the earlier years, most of the redevelopment should be oriented to, or supportive of, the Government Center complex. Thus, develop-- ment of private office space, hotel facilities, support retail facilities, and rental apartment units should be targeted: In addition to development geared tb the toveiAhttieht Cepter eompl etc, some cofvenience retail facilities and noting -to •serve the local dvertown community and.environs.,can be supported early ons this activity would best. be located in the area generally north of. 9th- _Street. In later stages of development, -.additional. private office space,. hotel facilities,, and residential units,are-possible, depending on market conditions, 'in the area south of gth.Street. The residential activity would most logically occur near the -.transit. station, possibly as• part of a joint development in conjunction with the' Washington Heights station'through-OTA� The results of our' reconnaissance market analysis, by major land use, are summarized below. Office Development Potentials 1. The office market in the greater Miami area is very tight, and no relief is expected until about 1980 when several new office buildings,. primarily along Brickell Avenue and in Coral Gables, will be available. 2. Government Center, with its combination of federal, state, metro and local users, will generate a demand for office space from private users who typically relate to the public sector. Evidence of this market is shown by the proposed Tower of Justice building being developed by Tibor Hollo. This 150,000 n.s.f. building is already fully leased, and ground will not be broken for construc- tion until after the first of the year. the influence of the-Oovernfhent Center•project, coupled with•Wjofx .access improvements Made possible by the develtspmeht of rapid traftsit afid the creation of a new envirtnment through •the' execution -of' tome of theprojects Previously"noted,could Make the southern portion of Overtown one of the more important future office nodes - in Miami, -Amore detailed analysis is required to more accurately -determine the level of office demand, but our preliminary estimates are that from 150,000 to 300000 s'.f.-of office space -could be supportable' in the southern portion of Overtown by• the late 1980's, assuring all projects proposed are executed -on or near schedule. Residential Development Potentials 1. A significant number of rental apartments at premium market rents catering to a downtown work force exist in widely scattered in central Miami. Occupancy rates are high and demand is generally strong for the limited number of available units. Plaza Venetia, currently under construction near Omni, will be completed in September of 1979 at luxury rents,' and the developer. indicates a strong level of interest in the units, even at this early date. The Brickell Avenue corridor is also locations a strong in -town residential area. Rental units and condominiums command high prices. Vacancies in rental units are few and sales of condominium units have been strong, most of the latter to off -shore -- mostly Latin -- interests. 5, The City has expressed its support for the development of a new town -in -town just east of Overtoin. This development could add thousands of new market rate units to the ih-city area, catering to the surge of new jobs expected to be added in downtown hi aini in the coming years= Finally5 research of comparable government centers in other cities around the United States conducted by Gladstone Associates reveals a strong pent-up demand for in=city housing where such units have entered the market. Much of the demand for housing in Overtown will emanate from the concentration of public workers, with addi- tional demand arising from private sector workers and the growing Latin population As a result of our reconnaissance, we judge that the southern portion of the Overtown area can become a significant residential development node, offering apartments, townhouses, and perhaps condominiums to the working population in the CBD (including Government Center, Civic Center and the uptown Omni area) nodes. However, residential development is closely tied to the creation of a new residential environment, particularly a secure environment. This, by necessity, means significant clearance or rehabilitation of existing buildings and uses and the provision of certain amenities. Residential development in Overtown will also require more evidence of security and area revitalization through the completion of other projects previously identified and the creation of jobs to support the residential units. It is likely that residential development. in Overtown will be slow in taking off and will likely follow resi- dential activities in the new town -in -town. Existing residents of the Overtown area cannot support new private residential development. • Retail OtvelOpment Potentials 1. The existing retail corridor; N.W, 2i d Avenue; Was once a thrivinig area. As population declined and competitive facilities Opened, support for retail fell off and stores began to close. Only a few convenience retail outlets, along with some personal service establishmentt, remain along the 2nd Avenue oorridor. Most of these are marginal; and nearly all have experienced a downturn in sales in recent years= If the projects rojects proposed are executed, we judge that a retail com- ponent onent catering to new workers and residents can be developed and adequately supported in south Overtown. Such a retail component will need to be located near. Government Center in order to capture the noontime spender, but should also be accessible to new urban residents. 5. We tentatively calculate that new workers, residents and transients can support 40,000 to 60,000 s.f. of miscellaneous retail, including. conv enience stores, personal service establishments and eating and drinking places. The retail component might best be handled as ground floor uses in office and residential buildings. These ground floor uses might be connected by comprehensive design to give the illusion of a tinuous interrelated development. We suspect that a major convenience as part of the new town -in -town because of the immediate market area and the expected comprehensive planning for that project. Because of market overlap between the 0vertown development and the new town -in -town we would not rec- ommend a major convenience center be built as part of south 0vertown. Howeve,-we relieve a substantial cohivenience cehtpr-is heeded to serve lower income area residents in Overtowb horsey=Wheatley and Cuttner� S th a faeiltity could be built north Of 9th..Street closet •to -the heart Of the residential commuhity that it would'servet•irhe rehabilitation of existing dilapidated commercial facilities along 2nd or 8rd Avenue would likely not be financially feasible, in;bur judgement. However, public assistance can profitably be used to _help relocate viable merchants from -these areas to the newly developed space,' -In our judgement, an entertainment. district would probably prove -.to be infeasible because of competitive areasdeveloping in Coral Gables, Coconut Grove,• Little Havana, the riverfront area, and do,ntoWn Miami, and -the nature-oi the -area which will be -somewhat deserted in the evening..after the close of business Residents of south- Overtown and•the new town-in-town•will be seeking recreation and entertainment outlets, but•our'preliminary judgement is that • -Omni and •the Biscayne Boulevard corridor, 'as well as activities taking place. 'closer to .central Miami, will fulfill these neeas. Hotel/Motel Development Potentials l.' Almost all downtown and airport hotels and motels, particularly the Omni, the Dupont Plaza and the nearby Holiday Inns and Howard Johnson Lodges, are experiencing high occupancy rates.` Construction of government offices in Government Center will, by its very nature, generate a`demand for hotel rooms from business visitors. This activity, coupled with resident al -rotated demand, downtown overflow and airport/over=the-road demand (due to the area's easy access to I=9S and SR836) will produce a significant level of support for hotel rooms in south Overtown. We judge that a moderate sized facility of 125 to 150 rooms, catering to per diem business travelers, can be successfully executed in south Overtown. We suggest a chain hotel (e.g., Holiday Inn, Ramada Inn, Howard Johnson s) because of its strong reservations network and competitive price. However, based on the experience of Roston's government center, a higher level of chain hotels such as a Marriott is not out of the realm of possibility. A hotel can provide some opportunity for a better quality eating facility and perhaps some entertainment functions such as a lounge.''. Prospects for the successful development of a hotel, and even the possible addition of a second phase, are enhanced by the proposed Downto►rn People Mover. We have been advised that OTA is consid- ering the construction of a DPM station between Washington Heights and Government Center. This station would provide the necessary connection between the south 0vertown study area and other downtown functions, particularly the office center and the convention center. METHODOLOGY The findings of this study are based primarily on original research' conducted for this assignment, supplemented by data supplied by the City planning Department and by our bank of data on development activities and opportunities in downtown Miami+ Original research included an evaluation of the site and its environs; interviews with public agency officials (City and County), builders, developers, realtors, office and residential building managers, and hotel operators operating in Miami, particularly central Miami; and surveys of retail merchants in the study area. More sharply focused interviews were conducted with Overtown property owners interested in new development opportunities and other parties indicating a desire to develop in Overtown. These interviews provided us with qualitative assessments of development in the City of Miami in general and in the downtown area in particular. The following data were collected and analyzed: - ownership patterns - land use and building conditions sources of demand for office, residential, hotel, retail and other related uses rent ranges and/or sale prices for residential, office and retail uses speculative development activity and interest in both the Overtown impact area and other sections of downtown Miami - evaluation of the following public plans affecting Overtown: -- proposed plans for a new town -in -town directly east of the proposed Washington Heights station site -- the planned and existing City, County, state and federal buildings in the Government Center complex to the south the new housing projects in the Culmer Park area to the west plans for expansion of the Jackson Memorial Hospital medical complex and the Civic Center complex to the northwest these data were cempi led acid analyzed to determihe the fel lowing characteristics`of area developmeht patterhst levels of absorption being obtained by various develop- mehts in downtown Miami rental levels or sale Prises fo r various types of land uses factors influencing absorption and price The results of our interviews and analyses were compared with similar situations evaluated by Gladstone Associates in connection with station impact and joint development in tioston and Washington, 0.C, and our experience with the impact of large government centers on adjacent land uses, particularly in Austin, Texas; Springfield, Illinois; Lincoln, Nebrasks, and Madison, Wisconsin, All qualitative and quantitative data were synthesized and judgements were made as to development opportunities, market opportunities, scale of supportable development, phasing, influencing conditions and other related matters. STUDY AREA OVERVIEW STOXIMAJARYIN Over the years, the study area has been called, by residents and outsiders, by a variety of names ihtl uding Overtowh, Culmer, and Washington Heights, the City recently designated the area between N,'W, Sth Street and N.W, 20th Street, and between the F, =C, Railroad tracks, I.9S, SR$36 and the Miami River as the Culmor Commmunity Development Area (see attached map), Two transit stations planned to serve the Culmer area have been named the Washington Heights and Culmer stations, During the 1940`s, "Overtown" became the popular name for this area, At that time "Overtown" was the center of black social and cultural life, and N.W. 2nd Avenue was the principal black commercial and entertainment corridor. Some of the oldest black churches are still located in Overtown,. though most members of the congregations no longer live in the immediate vicinity. In order to standardize terminology for this report, the following labels will be used: the entire neighborhood will be referred to as. Culmer; the area on which this report is focused, essentially between I-95 and the F.C.C. Railroad tracks and N.W. 6th and llth Streets, will be called Overtown. The study area includes the proposed Washington Heights transit station. Community Description Most of the statistical data analyzed for this study covered the larger Culmer area. Some data were available for the Overtown sub -section. of Culmer and these are reproduced here. However, most of our conclusions resulting from a review of statistical information reflect those Culmer data. 1 LfiEbVLOP��ENfi.,N...rcE��V1,PO►4"S ■ GOV ERNMEN "ER • DICENT ENNIAL PARK _ 11111 I 1 1 I' ,KO 2, OVEktOWN.JitirY A A StLtatO tEVtLOPML is ANO. tNVIRONS Overtown Study. Area Downtown Miami Government Center: Dade County City of Miami State Huilding Cultural Center Police Headquarters Planned Washington Heights Rapid Transit Station Site proposed West Park -- New Town=in-Town 6. Civic Center 7. Dorsey -Wheatley Area 8. Culmer Village 9. Elderly Housing 10, Proposed Convention Center/Hyatt House 11. ED-COM 12, expansion of U. S. Courthouse 13. U. S. Post Office 14. Planned Government Center Rapid Transit Station Site 15. Planned Culmer Rapid Transit Station Site 16. Omni 17. Plaza Venetia 1(b)- • Culmer started to decline in the 1060't at a result of the Combiined focus of urban renewal, 'desegregatioh Mid the eonstruCtioF1 Of the 8k836, 1.06 and 1.206 expressways which dramatically changed the character of the community. Population in the area defined as Culmer declined by over 2 between 1070 and 1076 from 14,000 to 11,60o The current population of the oveetown study area is estimated to be 4,000 and has declined as dramatically. Lven though the number of housing units in Overtown has remained stable, vacancy rates have increased to over 800. Overtown is one of the neighborhoods hardest hit by social decay. The 2nd Avenue commercial core has fallen into disrepair, and the overall vacancy rate for commercial areas in Overtown exceeds 46%. In addition, none of the subsidized housing projects constructed in Culmer have been located in the Overtown section. While Culmer in 1974 was 82% black, 8% latin and 10% non-latin white, 0vertown was almost exclusively black (99%). The median family income for Culmer in 1976 was estimated to be $7,300, only 65% of the $11,300 median income of Miami and only 50% of the $14,400 median income level of Dade County. Culmer has the lowest estimated median family income of any of the City's target areas. In 1975 only 5% of the Culmer households owned their dwelling units. The percent of homeowners in 0vertown is even lower according to a survey completed by the City in 1975, and at least 90% of Overtown commercial and residential structures either need major repairs or are in dilapidated. condition. The number of sound structures is very small. Over 40% of all dilapidated housing in the City is concentrated in the Culmer area. Few if any residential structures have been built since 1957, and the majority of structures were built before 1945. Units in multi -family structures rent for $25 per month and are marginally profitable. 1 Little money is tont .on upkeep and l community involvement is frlaih tained by the owners of these buildings, the high crime and valdalistn rates in the area exacerbate the situatioth Owners of the buildings are eager to sell if a buyer" could be found. While specific crime statistics were uhavai l abl e 5 our merchant surveys and discussionswith study area property owners revealed that crime is a problem in Overtownr Unemployment is high (a 1577 study by the Urban League of Greater Miami, Inc. estimated the level to be 70%) as is the incidence of female heads of households (76% according to the Urban League study). In short, the Culmer/Overtown area has all of the physical and social characteristics of a classic urban blighted area. The city is committed to the upgrading of the entire area, and until redevelopment begins, it has targeted community development funds for the Culmer area, including Overtown. In fact, substantial public investment of C.D. funds in Culmer has already been made by both the City and Dade County. In the past four years expenditures totalled $7.5 million, and large sums are also slated in future years. In the Overtown impact area, street improvements, including sewer repair, new asphalt, new utility poles, curbs, gutters and landscaping have already been made. Also scheduled are: a housing revitalization program the continuation of the Dixie Park improvements the provision of an interim assistance program to improve the overall appearance of the area including the use of concentrated code enforcement, lot cleanup, sodding, demo- lition of dilapidated buildings • the provision of economic development services, including business development, marketing outreach and coordination for the area along 2nd and 3rd Avenues • the redevelopment of the area directly north of the Govern- ment Center, including acquisition, demolition, and relocation The provision of commercial rehabilitation loans to businesses along N.W. 2nd and 3rd Avenues To date, the Community. Development Program has completed the following in the Culmer area: -3- new pavement, drainage; sidewalk rebuilding; curbs, gutters and landscaping in the area between N,W, 6th and lOth Streets and N, W, 3rd Avenue to the Pr C, C, Railroad right - of,„way acquisition of blighted propertiesriocated between N,W, 4th and Cth Avenues to provide p site for elderly housing funding of an Economic Development Center which provides loan packaging, business development; and commercial res development services, operation of a program to provide ciearance,housing assistance, code enforcement,painting, and residential rehabi l i ti tati oil services, As will be discussed in more detail belows the area hat some positive attributes These include: 1. Heritage and some structures of possible historic significance, 2, Good access features, which will be enhanced by rapid transit, Local property owners interested in participating in the redevelopment process. Location in a strong development environment, These factors will take on important significance in the eventual determination of market and development potentials. However, the blocks just north of the Government Center are already ripe for redevelopment. Land assemblages currently exist and land can easily be acquired, creating parcels large enough to accommodate large-scale projects. Many landowners and developers have shown interest in developing in the area, especially near the Washington Heights transit site and Government Center. Since cash flow from existing uses on the land is negligible or non-existent, the condition of structures poor and vacancy rates in both commercial and residential units high, few problems stand in the way of new development. The interest in redevelopment has already been reflected in land value increases. According to tax records and data on recent land sales, lots adjacent to Government Center have exceeded $150,000 in price. In 1974 and 1975, similar sized lots two blocks away sold for S54,000. Lot sales decrease in price proportional to distance north of Government Center. -4 - Finally; several groups have indicated they have plans for major developments in Overtown, just north of Government Center, The following are a few Of the major proposals put forward: 1. A 33.story condominium tower with units ranging in price from $40,000$$80,000, oriented toward office workers in the Ooverniaent Center area and other parts of downtown, A multi -use development on the block just north of the post Office► The project will consist of retail on the first floor, office on the next two floors and 8 floors of apartments. A parking garage and auto service station will Occupy the western half of the block. Retail uses might include a supermarket, a movie theater, and convenience stores. The developer expects many potential tenants to be drawn from Government Center workers, A local landowner has plans to remodel an existing warehouse i on' an acre parcel on N.W. 2nd Avenue between 7th and 8th Streets. The two-story structure would contain 12,400 s,f. of leasable office space. The land and improvements cost $50,000 two years ago.Possible tenants include dentists, doctors, dry cleaners and a barber. The seriousness of the proposals have not been evaluated since none were substantiated by market and financial research. However, the proposals are indicative of the private sector's strong interest in 0vertown and the continuing need for the City to deal with redevelopment planning on a comprehensive scale, consistent with its 1975 overall planning study. OVERVIEW OF FORCES INFLUENCING REDEVELOPMENT OF OVERTOWN Ou RyI w or OkU.t_ltL N REDEVEl�OPh1ENT, OF OVERTQW,N, Oevelopmeht potentialt in Overtown are likely to be influenced by several iMpOrtant activities planned for or ih 'progress ih central Mimi, They are summari2ed below tirectly to the south isGovernment Center Which, when completed in the late 1980', should contain offices for city, county, state and federal agencies, the Transit Authority headquarters, and the new county library and museum. Government Center will have a daytime. population of at least 10,000 employees. An eleven -story U.S. Court building is already under construction at N.W. Miami Avenue and N.W. 3rd and 4th Streets adjacent to the U.S. Post Office. A new town -in -town is proposed for the area stretching from the F.E.C. Railroad tracks east to Biscayne Boulevard. Plans and studies for the project which has the full, support of the City and business community, should get underway in 1979. A major expansion of EDCOM is under construction several blocks southeast of the study area and will provide new classrooms, labs, a theater, gym and 150 housing units for the elderly.' This $24 million expansion program is to be completed by fall of 1981. In addition, Florida International University is considering constructing its own facilities within the New World campus. Miami -Dade Community College (MDCC), the heart of EDCOM, currently serves 8,000 students. The Central Baptist Church, located at N.E. 5th Street and N.E. 1st Avenue, is planning an elderly housing project on adjacent land. The Civic Center, characterized by a large component of health and governmental related activities, is located between N.W. 10th and N.W. 14th Avenues and N.U. 20th Street and SR836. It includes Jackson Memorial, University of Miami, Cedars of Lebanon, Veteranto High Park and Anne i#ates hospitals; the Metro Justice wilding; the Metro Dade County public Safety Department; the Dade County Department of public Health and the Florida State Employment Service► Total etnployment is estimated at 21,000 and daily visitation is estimated at 25,000, Almost all the medical facilities are planning major construction and r"enovatiof projects in the next five to ten years which should bring total employment to 25,000 by 1985.1/ Government, Center Government Center is probably the most significant force influencin g the redevelopment of 0vertown. As a result, a more in-depth examination of project is presented below, The downtown Government Center, a massive 30-acre joint development project involving city, county, state and probably federal governmental construction, forms the southern boundary of 0vertown. The main juncture of the planned rapid transit system will be located in the heart of Government Center and is expected to handle 90,000 riders daily by the year 2000 Government Center will also be served by the proposed Downtown People Mover When totally completed in the late 1980's, total employment will total roughly 10,000, and daily yisitation will reach an estimated 15,000. The level of total employment and the types of departments and agencies to be located in the Center have important implications for potential retail, office, residential and hotel uses in 0vertown.. The following describes the government buildings already built, under construction and planned, with timetables for completion, types of departments and estimated numbers of employees. Fconomic Analysis, Civic Center Secondary Area; Miami Planning Department, Hammer, Slier, George & Assoc., July 1978. Ur ry tot, Office, The U.B. Pott Moos cotiipleted i n Tune of 1978 and located at Bgb N.W. 2hd Avenue, it the northern most public buildreg in Government Center► foe the C8D and, This is the major postal facility foe besides employing 175 postal workers, it is ail important genet atf r of iedestrian traffics The...City of Miami. The City of Miami Administration Building is currently under construction and is slated for corpletion by late 1979.. The Building Department, Planning and Zoning Boards and departments of Planning, Public Works, and Fire will be housed in the 64,000 gross s,f, pl expectedto work in the buiiding, structure. A total of 353 employees are moving from City offices housed ih aging structures at Dinner Key and in leased space in downtown Miami. In 1970, a proposal for a $10.5 million City Hall included as part of bond referendum was defeated by Miami voters. Miami received a $3.2' million grant from the Economic Development Administration in 1977 to finance stage one City office construction in Government Center as an alternative. No clear timetable has been established, but it is expected that the subsequent stages of the City complex will be completed by the mid-1980's. The following departments/divisions will eventually be moved: Mayor and Commission, City Manager, Management Services, Financing, Labor Relations, City Clerk, Law, Human Resources, Parks, Recreation, Public Works, Tourism and Promotion, Medical, Trade and Commerce, Computer, Credit Union and Civil Services. Total employment for these City 700 by 1985. State of Florida Regional Service Center. The first state building in Government Center, containing 167,000 s.f. of space, was dedicated in June 1978. Eventually, four buildings will form a state regional service departments is projected to reach tenter complex, with the next three bui 1 dings tO be constructed at four to five year intervals. each structure will Mute 800 to 000 workem The completed building contains the t'bllbw ng depat'tTeftt: public Assistance Banking and Finance Apprenticeship Workmen's Compensation General Services Di vi si do of Motor Vehicles Attorney General Real Estate Commission Transportation Health and Rehabilitation Services Insurance State Department A cafeteria serves both state employees and the publics State agencies; currently rrentl scattered throughout the Miami metropolitan area in leased space, will eventually be consolidated within the Center. Federal Buildi : The General Services Administration recently announced that a new 150,000 s.f. federal office building may be built in downtown Miami asp art of Government Center. A feasibility study indicated that it would be more economical to consolidate federal agencies in one building than to maintain agencies in rented space scattered throughout Miami. Metro has made an offer to construct an office building in Government Center, financed through tax-exempt revenue bonds, and lease it to GSA. No decision has been made, but the building could be available. as soon as the mid-1980's and would house 800 to 900 federal workers. Count Cultural Center. Earlier this, year, the County Commission approved the design for the $21.5 million County Cultural Center submitted by architect Philip Johnson. Construction should be completed by 1981. The Center, to include the central county library, an art exhibit center and historical museums, is expected to attract hundreds of visitors daily and employ between 100 and 120 workers. bade 0ouoty Adml tt `ati on_tui ldi Cambridge, Massachusetts, was selected in October to design the bade County Administration Building, to be located at the corner of N►W. f'd Street and First Avenue, plans indicate that the building Will be between 24 and 40 'stories high and contain a maximum of 600,000 s=fs of space, The junction of the planned north -south and east -west rapid s transit routes and the Downtown People Mover system Will be integrated into the building`s design. The County building, scheduled for corn pletion in mid-1582,, will house the following departments and agencies= County Manager • Building and Zoning = Community Relations toard Credit Union - Elections. Administration - Environmental Resources Finance - General Services Administration Human Resources Management and Budget Personnel Planning Public Works Property Appraisal In addition, the Office of Transportation Administration (OTA) will nee d 25 000 s.f. to house the central computer for the rapid transit system, , A cafeteria will be designed as part of the complex to serve the estimated 3,000 to 3,250 County workers using the building. Transit Station. The final force influencing the future development in 0vertown is the Washington Heights transit station serving Culmer and. the proposed new town -in -town. The station site is located on 2.3 acres of vacant F.E.C. Railroad right-of-way along N.W. 1st Avenue between N.W. 6th and 8th Streets. The current proposal is for a bus transfer and kiss - and -ride station. No parking facilities will be provided. -10 Hugh tubbiht Associates of DEVELOPMENT OPPORTUNITIES BY LAND USE CATEGORY • Market background factors a nd deVe1opient opportu'lites fora variety of land use s are--tummaH ed in this section bf the reports Cffi t Overtown just north of Government Center is well Situate The porn o►i off -ace emanating to take advantage of a multi -faceted demand for office space sets of from the shortage of existing space in downtown Miami and from u space who typically relate to government offices. The site will be further nonce the Washington Heights transit station enhanced as an office locatio is opened in 1988. The supply of office space in downtown Miami is tight at present. The latest Clark Biondi report ort for greater Miami indicates an overall occupancy is compares with an 85% rate for the twelve month period rate of 92%�0. This 1977, and a 78,a rate in 1975. The 25 buildings surveyed in o� ending June 30, overall occupancy rate of 91%, up from 84% a year. downtown Miami have an and in Coral Gables go. Occupancies along Brickell Avenue and Coral Way a„ more than are running even higher. The survey found that a firm needing 5,000 s.f. of office space has limited choice. The strong demand for office space is further evidenced by the increases in rental rates which have accompanied occupancy increases. Rents increased 13% in downtown Mi ami; 11% along Brickell Avenue and 4% in west Miami over the pas year. ear. While the increases in rents for Miami office space are ct metropolitan areas, . lower than the national average for major they reflect When .rents remained a much tighter market than was' experienced in the past, essentially stable. Office absbrpt 'oh h the Mia i market is p ojeoted to be approxima"te1y. 0,000 s.f. pee month for 1081 or 840,000 s.f, for the year,compared with absorpti bn of 65,000 s.f. per moth last year. Aocordi hg to the Clark tliondi report, the current inventory of available space is approximately 900,000 s.f,, but little is in Class A buildings with good locations, Construction has started on two new buildings on Brickell Avenue (the interterra Building and the Flagship Bank Building) which will add 600,000 sof, to the Office inventory, Two new buildings planned for the Gables will add another 200,000 s.f, Additionally, the 150,000 net s.f, Tower of Justice building, being developed by Tibor Hollo at the corner of Miami Avenue and SA. 1st Street in downtown, will be breaking ground in two months. This building is fully preleased. Several additional new office buildings are being discussed for Brickell Avenue, the recently auctioned Ferre properties downtown, and the Dupont Plaza parking lots. The 418,000 n.s.f. First Federal Savings and Loan building and the 588,000 n.s.f. One Biscayne Tower are the two most recently completed office towers in downtown Miami. First Federal has no space available and One Biscayne Tower is currently 86% occupied, Management expects. it to be 95% full by January 1, 1979. Older buildings such as the Southeast First National building (1959) with 264,000 n.s.f. of space have no space available. The Ingraham Building with 160,000 s.f. has 30,000 s.f. available due to the Florida Power and Light Company's recent move to One Biscayne Tower. However, it is expected that that space will be fully leased by the end of this year. The 70,000 s.f. Roberts buildings built in 1970 is 95% full. It is located across from the U.S. Court House and is mostly occupied by lawyers. the strength of the Miami office market can be attributed to the emergence of the City -as a financial tenter -for the .Caribbean and baitiii America; the generally renewed interest ih oentrel business districts throughout the 030 the contineed population growth of the Mi`ahii-aietro-- 'politan area Caused by the -influx of retirees, the.thigration of northerners .to the Sunbelt, •and the expansion of the Cuban community; .and -the overall economic. expansion Of the City..- At the• same time thre ha been an almost total dearth of neat office construction over the last few years Barring a Major eccnomic recession, the demand for.office space should intensify in the years Ahead .and new space added to the inventory -should not produce an overly soft office market. Demand for office space in'the uvertown area'.will principally come • from those professionals, associations, and ,businesses 'that need. to be i 'close proximity to -governmental agencies located in Government Center - For example, the.Workmen's Compensation Court has.been moved to the nod', 'State -Building at the north end of Government Center, A• random survey of • • attorneys dealing in Workmen's Compensation-matters,who have offices in Coral Gables (where the.Court-used to be located) indicated their interest, in•securing space: adjacent to the new state government complex. Other logical condidates for space in buildings adjacent to Government Center are.labor unions, -.lobby groups, consultants, attorneys, stock brokers, accountants,. court reporters, and the• like. Based on the size of the Miami office -•market under normal economic conditions, -the expected level of 'Competition the influence of Government • -Center-and the locational attributes of the site, we believe•that an office component ranging between 150,000 and 300,000 s.f. can be supported in the southern portion of Overtown by the late 1980's, assuming all projects proposed are executed on or near schedule. -13- . • IMO •At present,.the number of nonubsidi2ed tale and rental residential opportuhi ti es ' i n downtown Miarni for middle .and upper i nco 11e hou eh01 d t it 1ifi�ited. Based on the experience of projects under construction and on the drawing board, coupled• with high occupancy rates in existing projectt, a•significant demand eXists for in -town housing, • Within -the -Civic Center area, the Centre House 01400 N, IJ. loth Avenue) and the Cedars of Lebanon apartments•represent the only major• • residential' opportunities. The Centre. House,'' containing 236 apartments • renting from $165•per month for•studios to $265 per month for two -bedrooms-, has an'8% vacancy -rate. -Some units -have been converted to•offices. Most apartments. are rented'to medical students• and hospital workers with a few units occupied by governmentworkers.. The Cedars of Lebanon -building has. 188. units with rents ranging from'$225-'per month for an efficiency to $365 per month--for..a three bedroom apartment. The apartments are •fully occupied with a long waiting list. Most tenants are employed in the medical field. - A proposal is •under. consideration•to•build a 287-unit high rise- - apartment building at the corner of N.W. 9th Avenueand N.W..15th'Street. Our latest •understanding is that, if the project is deemed economically • :feasible, it will be oriented, toward the.elderly and• will provide.extended. care facilities. The Parkleigh'House Apartments, located at 530 Biscayne Boulevard, has 234 efficiencies ranging.in price -from $190 per month to $254.per The vacancy rate:is only 50. Approximately one-third of -the •tenants are younger households, students or. downtown workers.' The -:re maining-two-thirds are elderly.-.: Most. of the tenants do -not have cars. - Phase• I of Plaza Venetia, located next. to the- 0mni Complex, will completedby September of 1979. Three hundred rentalapartments- will_be -14- offered at• 0rices'eanging fro1460.0f'flonth to 06 per month, The • .developer of this project, Tibor Ho11o, indiEates that a strong kiarke"t • :eX sts•for such downtown apartments -and expects'a large number of units • to be rented to downtown workers., The second phase of this oject wi11•consist.of 810:additiona1 residential units and 600 hotel rooms. Subsequent stages will include another 450 apartment units and 604000 s.f, of office space, The Dupont plaza has 148 completely occupied apartments renting for $500 to $600 per month. Approximately 15% of the apartments are rented to downtown workers, and a large number of airline employees also maintain apartments there. The Plaza often receives requests for apartments in the $350 to $400 Per month range from people interested in living close to their downtown offices. Further interest in downtown residential living is exhibited by the rapid sales pace of Brickell Place Phase II, a 443-unit luxury condomin- ium on Brickell Avenue. Over 500 of the units are already reserved with completion scheduled for early 1979. A similar response has been experienced by a luxury townhouse project also located on Brickell. Gladstone Associates has, over the years, completed numerous studies that evaluated the impact of large numbers of government workers on housing markets in adjacent areas. Client cities included Lincoln, Nebraska; Tallahassee, Florida;and Springfield, Illinois, and many other cities were investigated in the course of completing research. In the last five to ten years, medium to high density apartments and condominiums have been built adjacent to, or close by, large government centers in Austin, Texas; Madison, Wisconsin; and Lincoln, Nebraska. The projects were designed to attract mid -management and upper level government workers, downtown -15 professionals and fatuity members from nearby univewsities, Other eities with large concentrations of government workers Tallahassee, Raleigh and knoxvillehave been actively pursuing programs designed to encoueade residential activity downtown. Ih almost every case; apartments are rented and condominium units absorbed as soon at they appear on the market: Almost every large urban area in the United States has experienced a trend toward young professional households moving back to the central citys even in those urban centers that did not have a tradition of downtown living. A dramatic case in point is the Loring Park development along Nicollet Mall ih Minneapolis. This multi -faceted residential development was planned to contain several thousand units, sale and rental, Predominantly market rate, with some Section 8 and one assisted project for the elderly. The project was clearly a pioneering venture in a former "tenderloin" slum area adjacent to the CBD. The project has been in execution for several years and the market response from downtown workers, formerly suburban residents, was overwhelming. In the next ten years, over 10,000 units of in -town' housing are. planned or proposed for locations in and around the downtown Miami area. Included are such developments as Brickell Place on Brickell Avenue, Plaza Venetia opposite the Omni, the proposed Westpark new town -in -town and the Claughton Island development. once the rapid transit system is in place and the new town -in -town gets underway east of the F.E.C. Railroad tracks, the area just north of Government Center in 0vertown should be a desirable location for residential development. -16- y the iato 1§80's it is btpetted that approximately 10 000 workers will be emplbyed in the varibua.effi'ces in Government tote, Atebrdiilg toa recent study published by the Florida•bepa-rtmont bf Commerce, the following percentages of govern ent.woi"kers are at the professional and managereht levels and thus. typically•earft between $154000:acid $25,000 annuallyt federal 22% state 39% local 18% Other potential sources of demand for middle income housing in Overtown include the faculty and staff of Miami -Dade Community College, which is in the midst of a large expansion program four blocks east of Government Center, and other do wntown office workers. In addition, large numbers of other workers (such as police, fire, electricians and postal workers) classified as technical, service and clerk earn above $15,000 per year. Most households have more than one wage earner, thereby raising the potential number of consumers for 0vertown units. Our projections of several hundred thousand; square feet of office space for 0vertown, including large numbers of high wage-earning lawyers and consultants, coupled with the governmentworkers previously described, leads to the conclusion that at least 3,000 households working in or adjacent to 0vertown could afford apartments starting between $450 and $500 per month (rents at Plaza Venetia start at $400 per month). A standard rule of thumb for housing affordability is to use 25% of gross income for shelter purposes, but many young professional households spend as much as 30% to 35% of their income on shelter. This means; that a household earning $25,000 a year could afford to approximately $500 per month Lased on the. ptiteitially large housing market ex eEted'in.the doWh town area, eeupi ed with, al ready strong housi ng demand•aid expeoted envi ron= 'mental iniproverentt iti th@ Overtown . area', we conservatively estia ate that 600 unlit could be absorbed in Weli-executed, firitate projeots.over the • next five •to ten years a modest percentage of the market--for•ih-town•unitt., We expect most Overtown•units will be aimed at the rental 'market, economics permitting, but-cohdofniniums and even townhouses may be feasible, • Conditions -surrounding the achievement -of this potential will be spelled out in a- subsequent section of this report. Hotel Until recently, hotel occupancy rates in the Miami area have been sluggish, especially along Collins Avenue in Miami Beach. At present, hotels in Miami are doing extremely well and some Miami Beach hotels are experiencing a resurgence of business. Almost all downtown Miami and airport area hotels, particularly the Omni and Dupont Plaza, have been experiencing high occupancy rates and increased business, Consider- able overnight business is generated by federal and state government offices, but Miami's growth as an international banking center, regional hub and Latin American shopping destination, has been largely responsible for high hotel occupancy rates. In Miami, new hotel construction activity illustrates the strong market for hotel rooms. The $41 million James L. Knight convention center and 607-room Hyatt, currently under construction along the downtown Miami riverfront, will attract substantial numbers of new visitors to Miami. City officials believe the Hyatt will be unable to handle the demand generated by the convention center. The former -18- MI up Pour Ambassadors, now the intercontinental, is presently undergoing a. $6.5 millibn renbvatioh program and will be cohveeting many of itt apartment suites to hotel rooms. Though business 'hat been slow in the past, the WO tbwert now open enjoy high occupancy rates. The S56-room Omni Hotel, with room rates averaging between $45 and $b0 per day, has enjoyed extremely high occupancy rates, buying the first four months of 1978, 90% of its rooms were occupied (70%-750 occupancy is considered a prbfitabla break-even point for new hotels and the facility is still booked solid: The manager of the Dupont Plaza reports that it is now getting some of 0mni's overflow business. The 295-unit Dupont Plaza hotel has enjoyed an 85% occupancy rate over the last three months. Business is 10 over the same period last year. Room rates are in the mid-S30 range. Twenty percent of the Plaza guests are affiliated with the U.S. government, doing business mainly with Customs, General Services Administration and the Justice Department; 10% are airline related; 35% are business re-. fated;and the remaining 35% are tourists. The 54-room Holiday Inn on Brickell Avenue is also reportedly doing well, appealing to more budget -minded businessmen and tourists. Rooms 'start at $25 for a single: The downtown Howard Johnson's is also experiencing good occupancy rates. The 182-room Holiday Inn at the Civic Center is doing moderately well. Last year it was bought by new owners and renovated. Approxi- mately 15% of its business comes from the medical center and government agencies. the Marriott and Sheraton Hotels at the - a i port aloe eXpei i ehCi tg among' the.. highest oecupanCy rates in Miami, the 425-room Marriott derivet 8S% of its demand frog businesSmen-Only a small-inrtion of • that demand (between 2% and.3�o) comes• froth goVernnient since room rates are at 1 ea'st $1 b above the $33 per day. federal Government per diem, • the concentration of city4 county, state and federal offioe5 in . Government Center, combined with the planned Tower.of dustice=Immigration • building, the expanded-U.S. federal•Court House'nearby and hotel demand generated by the Knight Convention Center, should create sufficient demand to support a hotel containing.125 to.150-rooms in Overtown We -suggest a moderate priced chain hotel (such as a. Ramada Inn, Sheraton or. .Holiday -Inn) since astrong market source for this'. hotel Will. emanate -from • government employees on a per diem allowance and businessmen who cannot afford the Omni or the proposed convention center Hyatt Hotel, I addition, easy access to. I-95'and the airport could make the '.hotel a stopover for airline employees' and. some tourists. If demand for moderately priced hotel -rooms generated by Government -. Center and other activities continues to. increase; 'a second hotel of similar size. or an addition to the initial hotel will prove feasible in later years. •Retail Demand for retail space will come frame. two sources and -the physical .response might.be•two-separate types.. of facilities.' One source•of demand • is the existing Culmer/Overtown- community,•which is presently served only by a combination of -rundown retail along•N.W. 2nd.Avenue and -several widely -scattered. supermarkets of questionable quality,• -20- The seobnd §buree-of deitand'Will be the -Workers,•residents, visitors and transient patrons of the bovet titnet t Center/bvertowh 'redevelbpmohi area4 'the former group, needs a convefii epee or nei ghbcrhood=serving shbb0Ang center With food stbirt acid general inerchandise. store anchors a1oi; with specialty shops•aiib personal service establ shmehts. the- 1after group heeds eating and dfinkiilk places, tome specialty shops, 'softie pe.rsbnal service -.establishments and certain types -of business• office. uses: -Retail demand generated by the transit station will be small,in our. judgefnent, as this .0 11 not be a transfer point or major destination, Cu1mer/Overtown Community+ According to a survey financed by the Urban League of Miami most (75%) shopping by local residents is done outside of the Culmer area. The only three services regularly utilized by Culmer residents within their_ community are dry cleaners, laundromats, and beauty/barber shops. The largest grocery store in Overtown contains only about 2,000 s.f, and charges customers higher prices than larger chain supermarkets. Residents must leave the Overtown area to patronize a full service supermarket. The supermarkets most frequented by local residents are the Grand Union on N.E. 2nd Avenue between 18th and l9th Streets and a Winn -Dixie on N.W. 2nd Avenue and 23rd and 24th Streets. 'These stores are old and relatively small. The Jeffersons at 15th and Biscayne and the Sears at l3th and Biscayne are frequented for major comparison shopping. The main commercial artery in Overtown is N.W. 2nd Avenue, a once - thriving commercial street that had been the heart of the black community As the population in the area declined (caused by urban -renewal programs, deterioration of existing housing, and new housing opportunities elsewhere) the retail establishments in Overtown also declined both in quality and quantity. At present, retail stores -in bvertowh consist of several "i�1om and pop" grocery and/or drug -store establishments -and a -few..service stores, such as cleaners, beauty parlors, and liquor `stores, to most •cases, commercial buildings have deteriorated to the. extent _that merchants have been forced_to relocate, moving out of the area. to addition to forced relocation,- many businesses. close' when the original proprietors retire. Those. businesses_ .that. .reM8in report .high dependence ot.food stamps and/or Medicaid. to some cases, merchants .report that welfare payments account for -over 70% of their total business. The merchants surveyed along •2nd-Avenue report that business has declined in the last -several -years. Sales per square foot. range. between ,$40 and $80 with..a few•markets. reporting sales of over $100 per square foot. Taking into. -account low.rentals--paid-(averaging-S200/month), and - low maintenance. expenditures, sales are still sufficient in most stores -to.maintain marginal viability. Sales levels•indicate that the local- residents are.able to support a modest level -of retailing -.New housing projects three blocks to the west, such as Culmer Village and Culmer,.containing• rental. units •and :cooperatives-, haVe added several hundred.new households to•.the local 'trade .area. To the north, improvements planned in. Dorsey -Wheatley should also help support new -retail space. Based on-current.need and. projected modest increases in buying power, • we estimate that a moderate sized convenience shopping -center serving residents of the •Culmer/Overtown community could. be supported. Such:.a ...Center -might. be 50,000-to 60,000 s.f, in size`'and-should`be.anchored by a•food store and a general merchandise (drug or, proprietary) store. Such a.center might receive some -support from new Overtown.residents and -possibly • residents of.the Westpark new town -in -town. Given pressures for• redevelop- Piet With Of 9th Street, we suggest the location of such a facility be in the northern part of the `study area (north of '9th Street) or in horsey -Wheatley, public assistance programs can be utili2ed to help relocate existing strong merchants from dilapidated coimhercial areas along 2nd and 3rd Avenue to the newly developed area. Far more detailed analyses are needed to ascertain levels of retail support from various sources and an appropriate development strategy, However, past studies by Gladstone Associates in other inner-city Situa- tions reveal that significant public participation is required to make an inner-city convenience center workable, this is due to the reluctance of convenience center anchors (primarily supermarkets) to take the risk associated with an inner-city convenience center, Without anchor stores a center is typically infeasible. Other problems with inner-city con- venience centers involve security, merchandising know-how of retailors, rent collection, center maintenance and management (including leasing up the space). Again, all of these factors need to be evaluated in a deeper level analysis. 2. Government Center/0vertown Redevelopment Area, The second type of retail facility needed in 0vertown would be oriented toward the working population. Government workers, on the average, are well paid. For example, the average annual salary at the U.S. Post Office, located at 500 N.W. 2nd Avenue, is between $17,000 and $18,000 which, in three years, will increase to over $20,000. Most other government workers earn between >$12,000 and $16,000 per year. Previous Gladstone studies in major American cities (such as Providence, Rhode Island and Kansas City, Missouri) have indicated that downtown office workers spend between $750 and $900 per year in the area in which they work, of which 55% is spent on eating and drinking and the remainder on retail goods. -2,3- At present, because of limited nearby eating, drinking And Detail opportunities, Governt1ient Center employees (especially those furthest from Mlagler Street and closest to OVertbwn) are spending less than is typical for downtown office workertz Therefore, a considerable amount of buying power is available that could be captured if reasonable shopping opportunities were present, 8y 1g85, between 8,000 and 10,000 people will be working in Government Center plus an additional 750 to 1,500 in Overtowh. Using a conservative figure of $750 per year, approximately $6 to $7.5 million of buying power can be attributed to these workers, which is sufficient to support. 60,000 to 75,000 s,f: of retail space, More than half of the space would be devoted to eating and drinking, A significant portion of this demand would probably be siphoned off to existing retail establishments in and around Flagler Street. However, by adding the buying power of the more than 10,000 visitors expected daily at Government Center offices, a substantial segment of retail space (including restaurants, candy, jewelry, books and magazines, and clothing stores) of 40,000 to 60,000`s.f.,'could be supported in the 0vertown area immediately north of Government Center. Further support for new retail space will come from residents of middle to high density residential developments built in the area. Retail oriented toward workers, visitors and new area residents should be located as close to Government Center as possible. We suggest most. space be accommodated as ground floor uses in office buildings, perhaps interconnected to give the illusion of continuity. -24- DEVELOPMENT ISSUES AND STRATEGIES ALO MtNT:tSSU S mAW fi tAtta. the attainment of developrnei t•poteftials is closely tied to the tol uti on of oertai ti j hysi cal , social acid eeonbmi c probl etas•or i ss ues • ih.COMer/Overtowfi's These problems or issues are discussed be10w, Public ,Pa rti ci pat ot In our judgement the City and County need to be heavily involved in the redevelopment of Overtown This public involvement should take several forms: 1. Land Acquisition and Relocation= physical conditions in the area are poor, and property owners (usually not residents) are eager to sell. private developers are likely to acquire property and cause the violent dislocation of area residents, most of whom have few financial resources or housing options. The involvement of appropriate public agencies will permit the orderly acquisition of property and the humane relocation of residents --through relocation to suitable housing and payment of expenses. In addition, land acquisition by the public will enhance the desirability of the area by expediting the assemblage process. 2. Planning. Once land is acquired, cleared and assembled into suitable redevelopment parcels it can'be promoted for sale to developers in the context of a comprehensive plan, the preparation of which is another role for the public sector. 3. Promoting Retail Development. While sufficient private developer interest exists to generate considerable development without major public intervention in the southern portion of Overtown, retail development in the northern portion will require more public effort. This effort might 25 1 encompass land acquisition, clearance and write=down, as yell as the identificatiOn of possible developers and merchants, Bogie attempts should be made tb persuade title of the major food store chains tb consider. opening a store in the cet'iter1. If this attetlipt fails, major'.indepehdent grocers should be approached, The possibility of forming a local develop. - merit corporatioh or attracting a limited dividend sponsor should be ex= plored to reduce the normal -developer profit'requiement., Direct public m financed incentives might include site improvement monies, seed menies- r(possibly through HUD -programs, local business. and financial -institutions, or.civic organizations), and lease guarantees lie•through'SBA) in addition to. land cost write:downs. • In addition,- the City should commit.to a high level of police•.protection to discourage the crime that has contributed to the demise of.stores in the area in, the past. 4. • Developer -Financial Assistance. Analyses conducted by • Gladstone Associates for urban residential'developments in other; cities, reveal that development economics are questionable in most cases, particularly for rental units the tenure type we expect to.be principally in demand in Overtown. In such cases, --public' participation is typically required to bridge the gap -between .what rents. will support and what is required. •Once more detailed market and financial analyses are completed, the level of public parti-- cipation and suitable programs -can be developed -to permit projectexecution. -Typically, public participation programs include land acquisition andwrite-down, building clearance,• provision of infrastructure, assis-.. tance with -project financing, tax abatement and. similar programs 5. Provision of Relocation Housing. We understand the.City.and/or. County-have.plansto rehabilitate housing in the Culme r area for low and. moderate income families. We believe this program should be -.encouraged,. -26- espe'eially ih view. of the projected relocation load expected• frotn ret developtent in Overt0w44 acid from transit realignment in the area between • llth Street and-llth.terrace, Or particular concern is the need for elderly housing•{over 66% of Cu1tner residents are -over 46 years of. go), The Dorsey • Wheatly_Devitalization pr'ografn•will help.alleviate the need for housing ill tip:: co rnuni ty. In addition, •possibilities for the designation of cer. Lain structures as historic buildings .es. a, way to provide tax benefits should be explored through•the.National Trust for Historic Preservation, •The City should also work with:the bade County HUD to investigate ways.of utilizing appropriate. Federal. programs including FHA insurance.programs�• Non=government agencies, including the Foundation for Housing Partnership and non-profit groups (le church and civic organizations),should also be .contacted for possible involvement, C. Transit Joint Development, The. Washington Heights station pro- vides-an•excellent.opportunity for joint development. As far as we know, OTA has not considered. Washington Heights as•a target area. However,• development potentials here are •significant, far superior to those at other stations at which•OTA is focusing•joint development activities. • The Washington Heights station .would,- therefore, be • an• excellent opportunity to focus public assistance and:federal funding:programs' to insure -high quality private development..Possibilities for federal assistance include the Young Amendment Program•of•land acquisition assistance. 7. Provision of.Parking. The level: of. development -proposed for Overtown,.coupled•.with-development already in progress:in-Government • Center, will put pressure -on parking resources. We -suggest -that A .parking analysis be undertaken to determine future parking -requirements in the study. area, the timing -of these requirements' and solutions to.- -27- • �t the prooltm through public/private participation, If the parking question is not addressed it could discourage some development. Nee.4,-WY61104t0 StudiJes The analyses summarised in this report were based oil a reconnaissance study. Par more detailed studies are required to deal with social issues, to provide pr0grammatic responses to social and developmental issues and to fine-tune market and development potentials. For example, in=town residential is one of the most difficult types of development to execute, in terms of typical market economics. Plaza Venetia is aiming for the top strata of incomes in order to make development economics work. Few down- town workers will pay Plaza Venetia prices for Overtown housing. More. detailed market and financial analyses are required t0 determine the. precise level of demand on an annual basis, by tenure and by price. In addition, financial analyses are required t0 determine if achievable market rents and sale prices will support development. The onus for some of these studies should be on the private sector, but more details are required to support public planning efforts. Impact on Existing Overtown Residents and the Culmer Community. The findings of our study seem to disregard the existing residents of Overtown. In our judgement, the character of the existing community and its residents is mostly incompatible with redevelopment prospects. There are, however, scattered buildings that are either sound or worthy of retention due to their heritage. If; possible, those sound or other- wise important structures should be retained and woven into the fabric of the redeveloped area. Further, our interviews revealed that some existing property owners are interested in being a of the redevelopment program. These local 28 p*opetty 'owners can and should be involved in the protests possible mechanisms for involving focal property owners in the redevelopment effort include u eint venture arrangements and the establishment of oon-profit development corporations= To be candid, conditions in the area appear to have fallen below the oint where significant public investment can lead to the revitali2a'� p _ tion of the neighborhood: Clearance will likely be the Major tool hopefullythrough the public sector to minimize problems, as previously described: Most existing residents and many businesses will be relocated. The ideal situation is to keep Overtown residents in the neighborhood near their existing institutions: This is why we have encouraged new assisted housing north of llth Street, in an area not likely to be affected by development, pressures: Redevelopment of the Overtown area should provide a variety of economic and social benefits to the residents and owners of Overtown and larger community of Culmer, The direct benefits include in- creased job opportunities at the new retail, office and hotel projects and the added convenience of improved availability and quality of shopping opportunites. Indirect benefits likely to result from the redevelopment include spillover retail support, land value appreciation, possible reductions in crime, and enhanced likelihood of private investment.