Economic Redevelopment and Revitalization of BUsiness District
West End
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Economic Development
Initial research focusing on historical and future trends indicates that the West End's local economy appears to be undergoing a critical phase. Although the West End has several high grossing commercial businesses, the historic Atlanta University Center, and budding diverse industries, the relatively low median household income for the study area demonstrates that there still is a lack of economic opportunities for several of the neighborhood's residents. Recognizing this economic gap, the studio has identified several opportunities to enhance the local economy's strengths while also exploring strategies to incrementally grow emerging industries and engines for economic growth.
Problem Statement
Given the current state of the local economy, potential opportunities for revitalizing the mall location, current and potential linkages with surrounding institution and commercial partners, and local economic industry trends, what are economic development opportunities that could possibly spur long-term, sustainable growth in the West End neighborhood?
Strengths, Weaknesses, Opportunities, & Threats (SWOT) Analysis
Strengths
- +The neighborhood contains a diverse mix of historic assets, including architecturally-significant homes, cultural landmarks, and the Atlanta University Center
- +The commercial business district boasts several high-performing businesses, including a high revenue grossing CVS Pharmacy and the Mall at West End, which has an estimated 90% occupancy rate
- +The neighborhood contains several major employers & industries, including the Metropolitan live/work complex, the West End Medical Center, and the Atlanta University Center
- +West End has several organizations who actively promote sustainable human resource development strategies (i.e., workforce development and increasing educational opportunities)
Weaknesses
- +There is a lack of a cohesive commercial environment along RDA & Lee Street (the main commercial complex on RDA-between Evans Street and Lee Street currently has 65% occupancy)
- +The mall's antiquated exterior wall faces RDA and currently includes relatively few exterior retail opportunities
- +West End lacks a specific 'identity' that defines the community's historic and cultural significance as well as its many assets
Opportunities
- +The proposed community improvement district offers an opportunity to create a marketing/branding campaign (highlighting the West End's many assets)
- +West End Medical Center & Morehouse School of Medicine offer an opportunity to grow the neighborhood's medical-related industry (e.g., primary care & medical research)
- +The Metropolitan's growing urban, light industrial base provides an opportunity to create a hardware/light industrial incubator that fosters small business opportunities. The Metropolitan warehouse could serve as a long-term destination, once start-up businesses outgrow the incubator space
- +The West End's location (e.g., proximity to airport and central business district) and underutilized warehouses offer an opportunity to support several industries, including arts & entertainment, information technology, food processing and storage
Threats
- +If the CID does not receive initial support (e.g., funding for the administrative cost gap, property owner buy-in), the CID may struggle in its initial phases
- +West End may be battling a negative perception about its initial viability as a commercial destination
- +Similar to the potential for accelerated gentrification in the housing market, recommended public/private infrastructure projects may cause commercial rents to significantly increase and possibly make small business opportunities unattainable for potential entrepreneurs within the community
- +The merger of Brown and Kennedy Middle School is short-sighted: its assumptions about continued declining populations around each school fly in the face of what's actually going on, threatening the viability of repopulating the neighborhoods with mixed-income families for whom high quality public education will be vital
Based on the SWOT analysis and talking with the representatives from the Atlanta University Center, West End Merchants Coalition and local real estate developers, the studio has identified several opportunities for spurring investment and economic growth in the West End. These opportunities include incrementally redeveloping the Mall at West End into a mixed-use economic center; supporting a West End Community Improvement District as a driver for public/private partnerships and funding; leveraging existing opportunities and relationships with AUC schools to grow medical-related servic es and office space, strategically capitalizing on emerging industries by providing ancillary services and incubators, expanding human resource development opportunities, and creating a small business strategy that includes a pop-up network to fill vacant retail space along the commercial corridors (i.e., Lowery Boulevard, RDA, Lee Street, and Oak Street).
Mall at West End Multi-Phase Redevelopment Strategy
After researching the current economic conditions in and around the Mall at West End as well as the potential for future redevelopment and linkages to surrounding institutional and office space uses, there is a significant opportunity to redevelop the mall and realize this property's economic potential. The goal is to create a plan that fosters a mixed-use, multi-phase development project that better serves the West End community and offers a destination for surrounding communities as well as local residents and AUC faculty, students and staff.
Analysis of Current Conditions
The first step in the development process is to conduct a brief analysis of existing conditions in and around the Mall at West End location. This analysis was conducted after touring the Mall at West End location, locating available public commercial data and reviewing its initial history and layout with private real estate developers, local community advocates, and members of the West End Merchant Coalition. The following is an assessment that defines the central problem related to the Mall at West End site and provides a brief synopsis of the existing conditions that helped inform the proposed redevelopment plan.
Exploring the Pivotal Role of the West End Mall Property
Given the current economic condition of the West End commercial business district and emerging industries; the current configuration of the Mall at West End and the surrounding commercial corridors along Oak Street, Lee Street, and Ralph David Abernathy Boulevard; the current neighborhood and Atlanta trends for multi-family development; and existing institutional and medical-related office uses; what are opportunities for incrementally redeveloping the Mall at West End into an economic hub for the West End community?
Analysis of Current Conditions
Economy
- +Major Employment Centers: While the West End has several small businesses along its commercial corridors, there are four major employment centers, each representing different economic industries.
- +The Atlanta University Center: Consists of Morehouse College, Spelman College, Clark Atlanta University, and Morehouse School of Medicine. The university system boasts roughly 7500 students and an economic buying power approaching $1 billion (Integral meeting - need source).
- +Mall at West End: The Mall at West End is a 151,000 sq. ft. mall with a 95% occupancy rate (need statistics). The mall is occupied by a few higher-end, credit-worthy national retail chains such as Footlocker and Athlete's Foot. The majority of the mall, however, is made up of smaller, local mom and pop stores.
- +The Metropolitan: The Metropolitan is an innovative adaptive reuse complex that provides flexible residential, commercial, and combination live/work loft space. The mixed-use campus houses a burgeoning offering of light industrial small businesses that focus on everything from Land Rover specific restoration services to custom woodworking and design. The Metropolitan appears to be fostering a strong entrepreneurial environment combined with non-traditional industrial residential spaces.
- +The West End Medical Center: The West End Medical Center is a not-for-profit, federally funded community health center (West End Medical Center Website). The newly renovated 41,000 sq. ft. center has been a fixture in the West End community since 1976 and currently serves 26,000 patients annually. (WEMC Website - History)
Property and Environs
- +Location: The mall location is situated in the eastern portion of the West End commercial business district and serves as the retail hub for the community. The square lot is served by commercial business corridors on three sides (Oak Street, RDA and Lee Street) with the Skylofts mixed-use complex facing the eastern side. The sidewalk on the RDA side is being updated with historic cobblestones and wider sidewalks that highlight the neighborhood's historic roots. Additionally, the mall is perfectly situated to take advantage of the studio's proposed improvements along Lee Street and is within a one minute walking distance to the West End Marta Station.
- +Environmental Considerations: A long-term concern for the project may be the potential remediation issues surrounding the potential redevelopment of the Exxon gas station on the corner of Lee and Oak Street. Remediation of gas station brownfield can present several complex environmental and legal issues. Specifically, potential petroleum leaks from underground storage tanks presents the most significant environmental liability. (Murphy & Crystal, 2009) Considering this potential issue, the "highest and best use" for this site might be a gas station that is better integrated into the proposed redevelopment and is reconfigured to allow better ingress and egress along Lee Street and Oak Street.
- +Additionally, the lack of tree coverage in the current mall set-up has helped form an urban "heat island" that impacts the quality of life for residents and customers. Any new development would have to be cognizant of this effect and incorporate development strategies that improve the quality of life for residents, future employers and retail customers.
- +Political Considerations: The West End contains several community organizations within city council district #4, including the West End Neighborhood Association, the West End Merchant's Coalition, Neighborhood Planning Unit - T, a potential Community Improvement District, and the Atlanta University Center Consortium. While these organizations and political entities have differing goals and perspectives regarding the economic revitalization of the West End community, there seems to be a consensus regarding the importance of fostering greater economic opportunities for the community's residents.
- +Legal Considerations: While the new development project has proposed implementing several best practices that will increase opportunities for open green spaces, pedestrian walkability and quality sustainable design, development will have to comply with both the SPI-21 district and the BeltLine Overlay district design and land use requirements. Additionally, despite not falling within the HD-20G historic guidelines for residential properties in the West End, developers should be aware of building and land design proposals that may stray too far from the neighborhood's history and historic design language.
Market Analysis
- +Future Opportunities and Trends: Talking with local developers and reviewing the Sizemore Group's comprehensive plan proposal for the Atlanta University have given the impression that Morehouse College, Spelman College and Clark Atlanta University are currently focusing on an infill redevelopment strategies within the existing AUC boundaries rather than expanding South towards the West End. The Morehouse School of Medicine, however, appears to have maxed-out the potential space use of its current footprint and has little room to expand. Further, the medical school has several national centers and research institutes, including a national center for primary care, that focus on improving health disparities in the greater community. Due to national trends expanding access to healthcare as well as the need to address poor health trends within the NPU-T district, there may be an opportunity and a need for the school to expand its educational, research and primary care medical office space into the new development site.
- +Current Supply of Office and Retail Space: Besides the aforementioned Metropolitan mixed-use development, there is very little office space in the area. Retail space uses are comprised of strip retail centers on Lowery Boulevard, Oak Street and Lee Street (surrounding the mall location). In addition, commercial retail along Ralph David Abernathy is currently undergoing a transitional period with several vacant units adjacent to the mall.
- +Current Major Construction Projects: The Ashley Collegetown development is a multi-phase, mixed-use project developed by Integral Consulting in conjunction with the Atlanta Housing Authority. The development offers a live, work and play environment with a proposed mixture of single and multi-family residential, green space, senior housing and commercial retail land uses. The project is targeting college students, faculty and staff from the nearby Atlanta University Center.
- +Residential Rental Market Trends: The following is a brief analysis of existing rents per square feet for rental apartments and condominiums within the West End study area. This analysis includes the lowest estimated price listed for rental and sale price values.
Residential Market Trends in West End and Surrounding Areas
Project Analysis
Current Owners Goals: The studio was unable to contact the current owners of the Mall at West End, the HT Group, LLC, and thus could not ascertain the developer's goals or willingness to sell the property. Currently the mall has an estimated 9xx% occupancy rate, and depending on current revenue, the owners may not want to quickly dispose of the property. While HT Group may not want to sell the property outright, there may be an opportunity for the investment firm to partner with an established real estate developer who has experience building mixed-use, multi-phase projects. In this partnership, HT Group could serve as a junior partner for the redevelopment project with the value of the land serving as their equity stake.
Redevelopment Plan
The Mall at West End represents an antiquated, sub-optimum commercial usage that fails to support the potential of the historic West End business district. Given the proximity to the AUC and to the MARTA West End Station, a denser, diverse, and less automobile oriented development pattern should replace the existing conditions. The scale of the site lends itself to a redevelopment pattern that would subdivide the existing block into multiple smaller blocks to be more cohesive with the surrounding block structure. Furthermore, this scale supports a development pattern that would evolve in several phases. To support the existing businesses at the Mall at West End, the original existing structure and its tenants could be left primarily intact during the execution of Phase I. This would provide an opportunity for the businesses to continue operations while new space, which is conducive to a walkable environment, is constructed. Existing businesses could be given rights of first refusal to relocate to newly developed spaces prior to the execution of latter phases, which would include the demolition of the Mall at West End. With various uses considered for development such as commercial, office, residential, and incubator, this would allow for the market demand to develop for the future phases, rather than a large-scale delivery of space that the West End market may not be ready to absorb.
Under this scenario, the first phase would constitute the northeast and east portion of the site, currently occupied by a gas station, quick service restaurant, and parking. While the gas station would most likely remain, there is an opportunity to reconfigure vehicle ingress and egress with an emphasis on curb appeal. Phase II would include the demolition of the food court appendage to the Mall at West End, with Phase III resulting in the complete demolition and redevelopment of the mall. The result could potentially be a more compact, economically diverse development. Figure 31 shows an example of the possible redevelopment phasing strategy.
Pro Forma Financial Analysis
The following is a brief pro forma financial analysis for the multi-phase redevelopment of the Mall at West End Complex. The studio is proposing a 650,000 square foot live, work, play, exercise and Learn (mixed-use) complex which would serve as a destination for the AUC, West End residents and the surrounding communities. The redevelopment consists of three phases and includes opportunities for institutional, commercial, residential and community spaces (with both for sale and long-term rental options). Additionally, the studio also has proposed 186,000 sq. ft. of structured parking, and 109,712 sq. ft. of green space (for community events, festivals, general community use). Table 4 provides a brief synopsis of the overall square footage breakdown across the three phases. This analysis was provided to serve as an example of what could be placed on property and the potential return on investment for a multi-phase, mixed-use redevelopment strategy. See the Appendix for a more complete breakdown of the financial assumptions the studio used to conduct this analysis.
Redevelopment Plan Square Footage Breakdown (Phases I, ii, & 3 and Total Breakdown)
The studio is proposing a multi-phase redevelopment strategy that offers commercial, institutional, residential space as well as a community center (YMCA model). The community center was an important component, especially considering the need to address the aforementioned morbidity rates discussed in the Environmental section as well as the need to support educational opportunities (e.g., school-related summer camps and weekend programs) highlighted in this section.
- Phase 1: Residential (for sale), Commercial and Institutional Space
- Phase 2: YMCA Community Center
- Phase 3: Residential (for sale), Commercial and Institutional Space
Expected Net Operating Income (NOI) for the project is projected to be an estimated $5,117,798 in year one. After factoring in debt service obligations, Before Tax Cash Flow (BTCF) is $ 1,639,136. Additionally, the project yields a first year Cash-on-Cash return (annual BTCF/Total Cash Invested) of 15% with a healthy Debt Coverage Ratio (DCR) of 1.47.
Furthermore, while the pro forma indicates periods where the project will yield relatively low DCR during project implementation (especially when considering the construction of the YMCA and the lack of residential sale revenue in Phase 2), years 8 through 12 suggest that the project will ultimately yield healthy returns for the investor/developer. Additionally, return on investment is expected to be further enhanced by the many surrounding infrastructure projects the studio has suggested in other sections of this report. This realization also suggests something broader: holistically community development-driven real estate strategies will most likely require a longer term approach to investment than traditional, market-driven strategies (e.g., evaluating returns over a longer period of time rather than a 5-year holding period evaluation).
Proposed Residential Development Analysis Phase 1 (First 3 Years Beginning in 2016)
Proposed Residential Development Analysis Phase 2 & 3 (Years 4 - 7)
Proposed Residential Development Analysis Phase 3 (Years 8 - 12)
Potential Redevelopment for West End
Visualization of Lee St Street Improvements
Commercial / Mixed Use District Investigation - Ralph David Abernathy Streetscape and Tunnel Improvements
Commercial / Mixed Use District Investigation - Mall at West End Redevelopment to Attract TOD
West End Incubators & Medical-Related Office Space: Growing Economic Opportunities in West End
The West End is in a prime location to support incubator space. The neighborhood is on the North-South MARTA transit line close to the Central Business district and most importantly, is close to the Atlanta University Center and Morehouse School of Medicine.
Depending on the available land footprint, the possible incubator industries, and the goals of the project, an incubator can be specific or multipurpose. Further, they are also usually structured as public-private partnerships to help maxmize the many positive effects of the incubator experience (Infodev).
The AUC has several existing programs that could be enhanced via a natural partnership with an incubator, including the MBA program at Clark Atlanta University and the many medical research centers at the Morehouse School of Medicine. Both of these programs could be linked to a more specific incubator program. This type of incubator could probably mirror the StartX incubator space at Stanford University, in which the spaces and programs would be more targeted to specific industries. This focused structure can benefit by targeting specific grants and funding.
There may also be opportunities for Morehouse School of Medicine to expand its footprint into West End and specifically into the Mall at West End proposed redevelopment. This institutional expansion could include classroom, lab and community outreach space. Such expansion could pave the way for incubator space related specifically to medical IT, medical research and hardware. Additionally, the area could house an outpatient clinic, small start-up lab spaces, or spaces clinical trials (taking advantage of the institution's nationally accredited Primary Care Center). The West End Medical Center is also in this area, so medical-related incubator or clinic space makes sense. Research has shown that due to the aging of the Baby Boomer generation and the expansion of the Affordable Care Act, there will be a greater demand for primary and outpatient care facilities. West End has the potential to position itself as a district catering to direct medical and medical-related ancillary services.
Furthermore, with the proximity of the Clark Atlanta Business Program and several business-related programs within the AUC, West End could also house a more general incubator, which would look more like the SPARK Boulder facility. The incubator could be weighted more towards students, but still offer spaces and services for a wide variety of companies and community members. Offerings could include copying and printing services as well as technical assistance.
Additionally, similar to the Oakland, CA precedent, the West End could also house hardware incubator space in some of the vacant industrial buildings where innovative developers are using hardware startup incubators to boost jobs and investment in blighted, industrial neighborhoods. (See Yoshitsugu, 'Oakland developer plans incubator for hardware startups'). The idea is to adaptively reuse underutilized warehouses and industrial centers into large, affordable open space incubators for professional engineers, local entrepreneurs, and early stage startups to share resources, collaborate and developer their products (Yoshitsugu, 2013).
Finally, probably the most important element of an incubator space is that some entity (usually a university or affiliated group) must be in charge of managing it. This management includes everything from day-to-day staffing to long-term programming and plans.
Other Emerging Industries to Consider
In addition to the aforementioned hardware and medical-related opportunities in the West End, there appears to be a burgeoning arts and entertainment industry as well. The newly renovated Metropolitan live/work complex houses several small businesses and art spaces, including music recording studios, performing arts centers, commercial art galleries and visual arts (digital media and content) workshops. Further, the state of Georgia and Atlanta, in particular, are aggressively courting the film and television production industry with financial incentives, production resources and professional support. The Metropolitan's existing arts and entertainment base, Atlanta's illustrious music history, and the vast opportunities for adaptive reuse of underutilized warehouses presents an opportunity to make the West End a hub for this vast and lucrative industry. Moreover, the West End's location offers an attractive home for this industry with easy access to several interstates (I-20, I-85, I-75, and I-285) and close proximity to the airport as well as the Central Business District (where several production companies have shot television and film scenes).
Additionally, Information Technology is another industry that metropolitan Atlanta is actively pursuing as part of their long-term economic development strategy. With more people beginning to move back into or stay within the city's diverse neighborhoods, there may be a future influx of established and start-up businesses following them as well (e,g., growing business districts in Midtown and West Midtown) The West End's underutilized warehouses and the Mall at West End may be a natural place for small-scale desktop support companies that provide technology support to these incoming businesses who cannot afford the financial overhead for an onsite IT facility. IT desktop support businesses could use West End's proximity to several business districts as a way to offer efficient remote and on-site hardware maintenance network, database management, and IT security assistance along with other technology needs.
Human Resource Development
While Holistic economic development strategies include maintaining and increasing affordable housing opportunities, the studio recognizes that affordable housing strategies address only a limited amount of the West End's total housing stock. Any affordable housing strategy must be supplemented by a broader human resource development plan that focuses on long-term strategies that expands living wage careers as well as educational opportunities. These strategies are even more important considering the current low median household income (relative to Area Median Income) and the expected increase in market rental rates and housing prices due to the studio's proposed development projects.
Recent economic development theory has focused on two pathways for human resource development: the traditional view of workforce development and an emerging emphasis on growing and strengthening educational opportunities. (Blakely & Leigh, 2010, p. 297)While the studio focused primarily on the former, providing quality education opportunities is an important component for raising standards of living for all residents while also reducing overall inequality. (Blakely & Leigh, 2010, p. 314) Currently, there are several West End community organizations leading the charge for improving the quality of the K-12 school experience. The quality of the local public school system can directly impact both the earning potential of West End children as well as attract outside firms and industries who value a strong primary and secondary school system. (Blakely & Leigh, 2010, p. 314) Finally, one developing issue worth monitoring is the current list of Atlanta Public School closings in the communities surrounding the West End. In the upcoming years, the Atlanta Public School Board has slated Kennedy Middle School in the English Avenue/Vine City neighborhood for closing and the merging of the school's existing students with Brown Middle School in the West End. Among many West End education advocates, this merger raises concerns regarding class size, the allocation of resources (per child) and the quality of long-term educational opportunities for students in the local school system. See Appendix for a brief overview of Education in the West End.
Workforce development strategies have traditionally been the bedrock for traditional economic development strategies. Emerging industries and proposed new development allow economic developers to link existing, local skill training and job-placement programs with shovel-ready construction projects, entry-level IT positions, and current arts and entertainment businesses. More importantly, the multiple construction projects and arts and entertainment opportunities highlighted in this report (and the current trajectory of these industries in the metropolitan region) could provide a pipeline of good paying careers with low barriers of entry (i.e.., advanced degrees and extensive professional experience are not prerequisites). For example, local workforce development organizations could help develop a workforce plan that offers outreach, skills training, education and on-going support programs for green-related and building and construction jobs. These programs could prepare residents for job placement within the proposed multi-phase, multi-million dollar Mall at West End redevelopment project.
Further, the arts and entertainment industry offers several entry-level positions such as production assistants. The 'Made in NY' Production Assistant Training program is another example of how local development workforce organizations worked with private industries (and the Mayor's Office of Media and Entertainment) to provide low-income and unemployed residents with training and placement in film and television production.
Finally, IT help desk jobs are ideal entry-level positions into Information Technology because of the position's low experience and educational requirements. (IT Career Finder) The position also can serve as gateway to more advanced, higher-paying careers such as network administrator, database administrator and IT security specialist.
Pop-Up to Permanent Shop Network for Commercial Business District
To supplement the short-term commercial development opportunities for the commercial district, the studio has identified a pop-up to permanent shop network as a strategy for leasing current economically dormant vacant spaces along RDA Boulevard and other commercial corridors adjacent to the Mall at West End site. In addition, the network could help foster small business opportunities and assist the lease-up process in the new retail portion of the Phase 1 mall redevelopment proposal. This public/private partnership would involve a local economic development entity such as Invest Atlanta providing technical assistance and grant funding for up to six months of tenant rent within the network. The goal is to create network of potentially locally-owned small businesses that could pool their resources for collective marketing and hopefully become long-term fixtures within a revitalized community business district. Further, this network could be tailored to support businesses that 'fill gaps' within the existing business district make-up and better address the diverse needs of the greater community. 'See Appendix' for Oakland 'Popup Hood' case study.
Atlanta University Center's Role in West End Economic Revitalization
A 2007 comprehensive economic development strategy for the Atlanta University Center leadership identified the role of the colleges and universities in stimulating local economies in surrounding neighborhoods. (Angelou Economics, 2007, p. 10) The West End neighborhood, in particular, is an essential partner to the AUC, serving as the entry point for the south campuses from I-20 and Lee Street (e.g., coming north from Fort McPherson development).
Recently through the college system's community development arm, the University Development Corporation (UCDC), the AUC has begun to engage community stakeholders regarding partnerships and economic development opportunities in the West End. For example, the UCDC has been heavily involved in the creation of the West End CID, seeing the importance of a competitive, pedestrian-friendly business district within walking distance for the AUC's faculty, staff and students. However, there are several opportunities for AUC and UCDC to expand their relationships with community stakeholders and become an even greater component of a holistic community development strategy in the West End. The AUC and the UCDC could adopt some of the previous efforts by Howard University to help revitalize Le Droit Park, a historic, neighboring African American neighborhood in Washington D.C. (AngelouEconomics, 2007, P. 11). Howard University's award winning economic development plan included moving several university entities (e.g., bookstore and alumni office) to vacant buildings along the business district's main commercial corridor, hiring a community liaison, and engaging the community for input on planned improvements to the neighborhood. (Blakely & Leigh, 2010, P. 251 ' 252) (AngelouEconomics, 2007, P. 10 ' 11) By adopting some of these strategies, the AUC and UCDC could help make the West End a better live, work, play and (learn) destination for their faculty, staff, and students (as well as community residents).
Furthermore, the West End's unique historic housing district, live/work loft warehouse conversion opportunities, and TOD possibilities makes the community a natural destination for students, staff, and faculty looking for nearby residential housing that is close to the interstate, Northside Drive and MARTA. A diverse housing community and commercial district close to the AUC could be attractive to recent college graduates as well as a useful tool for AUC schools looking to recruit and retain top academic and administrative talent.
Fire Station
The historic fire station #7, which represented Atlanta's oldest running fire station and one of the city's busiest stations, was closed in 2008 due to city financial issues and budget cuts. The closure raised concerns within the West End community and with Atlanta Fire Chief Kevin Cochran regarding the impact on response times for West End and the service area of stations serving surrounding communities. Recently, however, the Mayor and city council have authorized $2.5 million for the renovation and re-purposing of the fire station as an emergency medical services center. As of now, there are no plans to operate the site as a full service fire station with a fire engine/ladder and crew. (West End Neighborhood Development (WEND). (2013, January). Fire Station #7. West End Historic District, 2(13))
Given the site's current designation as an EMS center, the studio conducted a brief analysis looking at fire service response times for the West End community. Basic GIS analysis was performed considering the shortest time in which a fire truck can reach the West End study area. Analysis about the number of stations that are within 4 minutes from West End area was performed. Results showed that the first fire truck can reach the West End area within 2 minutes. Additionally, the studio found that 2 to 3 stations could respond to West End area within 4 minutes. However, we did not have historic data about the fire incidents in the area and the capacity of nearby fire stations. Analyzing the historic data and the capacity data for nearby fire stations would make the situation clearer in two aspects: 1) what is the actual need, and 2) whether nearby stations actually have the capacity to serve the area. Finally, a more in-depth investigation should also consider the large stock of historic, wood framed housing, older commercial structures, and the introduction of adaptively re-used warehouses in the commercial and residential districts.
Fire Response Time During Peak Travel Time
An Overview of the Proposed West End Community Improvement District
In an effort to take an active role in fostering a more vibrant commercial business district, the West End Merchant's Coalition, the University Community Development Corporation and other stakeholders are in the process of creating a Community Improvement District (CID) for the West End. A CID is public-private partnership where local governments authorize property owner members to impose voluntary self-taxes within a geographically defined area. This quasi-governmental entity is a key component of locality development, driving and advocating for revitalization by enhancing livability, promoting the business district, improving urban design, and creating a sense of 'place' (i.e., defining an identity). Funding for the CID comes from a self-imposed additional ad valorem millage rate paid by commercial property owners (excluding residential property owners). While the Georgia Constitution prohibits a self-tax from exceeding 25 mills or 2.5% of assessed value of the property, most Georgia CIDs have set their millage rates between 3 - 5 mills. These additional mills of property taxes paid by members fund the CID's operations (e.g., administrative operations, projects, plans and programs).
Commercial / Mixed Use District Investigation - Mall at West End Redevelopment to Attract TOD
One of the most important aspects of a CID is the ability for commercial property owners to take control of their business district's revitalization and economic vitality. In a recent West End Merchant Coalition meeting, commercial business owners identified three main goals for improving the economic viability of the West End commercial business district: improving marketing/branding, changing outside public perception of the community, and addressing safety concerns. These three goals also represent the core activities of a CID and offer an opportunity for the merchants to begin making immediate improvements to the commercial district (e.g., security, advertising to outside communities, marketing and business district promotion programs). Lastly, the CID could also lead the way fostering a more competitive and cutting-edge business district by providing West End-specific commercial market surveys, reports and analysis.
In addition to the traditional CID activities, the revenue raised through the CID could serve to leverage, match and assist outside funding from local, state and federal agencies. In turn, the CID could serve as a catalyst for planning, supporting, and advocating for several of the proposed infrastructure and transportation improvements. These potential major projects include the Lee Street Bridge development, Lee Street and Ralph David Abernathy streetscape improvements, Ralph David Abernathy Boulevard underpass revitalization, wide-ranging marketing campaigns and updated neighborhood comprehensive plans (e.g., Livable Centers Initiative Plan).
Currently, the West End CID stakeholder group is refining their approach and determining the most optimal geographic target area for the proposed CID's boundaries. Initial target area corridors include Ralph David Abernathy Boulevard, Lee Street and White Street. In addition to the target area analysis, the group is also focusing on fulfilling two of the key requirements for owner written consent within the target area:
- 1. A majority of the owners of commercial real property (i.e. 50% + 1); and
- 2. The commercial real property owners that encompass 75% by value of real property value is reached.
Community Improvement District Strengths, Weaknesses, Opportunities, & Threats (SWOT) Analysis
Strengths
- +Local Control. CID allow commercial property owners to take control and improve the economic and aesthetic condition of the area surrounding their properties
- +Wide-Ranging Projects. Funds collected through a CID could be used beyond administration and safety for numerous projects including: parks, public transportation, street and road construction and maintenance.
- +Marketing and Branding. A CID can help lay the foundation for creating an identity/ brand and commercial business market strategy for the West End, capitalizing on the community's unique history, location and placement on the National Register of Historic Places. For example, improving and coordinating signage, light poles, tree planting, street signals, etc.
- +Fostering Economic Development Planning and Programs. The CID administrative structure (Board of Directors and day-to-day staff) leverage CID and outside grants to implement cutting-edge economic development for planning and improvements.
Weaknesses
- +Relatively Low CID Assessed Values: The current proposed CID boundary has relatively low assessed values (est. $32 million), which may increase the initial millage rates required to fund CID activities
- +Leveraging Outside Funding. A CID can serve as a local advocate for the commercial business district, working with local and county officials to ensure outside funding for project proposals (e.g., American Recovery and Investment Act, Georgia Transportation Enhancements grant, local and regional SPLOST (Special Purpose Local-Option Tax) for capital outlay projects). Additionally, the CID is the mechanism for local communities to access CID-specific or CID-friendly local, regional and federal funding.
- +Leveraging the Beltline. The Beltline Westside Trail offers an opportunity for the CID to connect its master plans and infrastructure improvements with a broader public/private entity. The result could be additional funding opportunities through the Beltline TAD, which is eligible for use in the West End commercial business district.
Threats
- +Shrinking Pool of Outside Resources & Funding. The pool for CID outside funding is shrinking due to growing number of Georgia CIDs vying for the same private as well as public regional, state and federal funds.
- +Relatively Low CID Projected Revenue. The initial projected revenue for the proposed CID is relatively low (est. $165,000), which could potentially harm business member buy-in as well as CID-funded projects during the first few years of operation.
- +Potential for Isolation from Greater Community. An important argument that must be considered when creating a CID is that there is the potential for this entity to create CID-specific plans and goals with little consideration for the needs of the entire West End community
CID Activities: Opportunities for Holistic Economic Development
The decades of disinvestment and lagging economic opportunities in the West End will most likely necessitate a comprehensive, holistic plan for community and economic revitalization. Holistic development strategies often require collaboration among the many diverse stakeholders that make-up a vibrant community. To accomplish this goal, neighborhood stakeholders within the education (primary through post-secondary), business, residential, community, cultural and political sectors will need to work together to craft a 'blueprint' for equitable growth and development in the West End.
Understanding this need for multi-sector collaboration and comprehensive strategies, several CIDs in the Atlanta Metropolitan region have worked hand-in-hand with a neighborhood non-profit community development organization to create economically-diverse, thriving business districts. Many of these partnerships grew out of the realization that a CID's activities impact more than just the businesses within the proposed boundaries and should be complementary to the greater community's comprehensive plans and goals. For example, both the Atlanta Downtown Improvement District (ADID) and Midtown Improvement Districts (MID) were founded by and work in tandem with larger, non-profit organizations (Central Atlanta Progress and Midtown Alliance, respectively) whose boards are made up of local business, institutional, and community leaders. These organizations' missions include a commitment to a wide-ranging strategies that incorporate culture, education, livability, as well as commerce. Further, both Central Atlanta Progress and Midtown Alliance helped create the master plans and provide day-to-day operations/staffing for CID-funded programs and projects in their communities.
Similarly, the West End has an opportunity to engage the strong network of existing local community, institutional and political organizations (e.g., WEND, NPU-T, AUCC, Council District #4) in creating a non-profit community development organization (e.g., the 'West End Alliance'). While these overarching organizations (CAP and Midtown Alliance) existed decades before the implementation of a CID, there are still great lessons to be learned from a holistic partnership and community planning strategy. This cross-sector membership organization, along with the West End CID board, could develop and routinely update the master 'blueprint' for the West End neighborhood, hopefully using this report as a resource. This long-term planning tool could provide the framework for future growth; focusing on livability, economic opportunities and holistic community development for all stakeholders. Once the blueprint for the West End is completed, the CID could serve as the 'funding arm' to help fund and implement many of the blueprint's projects that drive sustainable economic growth within the business district. Finally, analogous to Midtown Alliance, the 'West End Alliance' could also serve in a supporting role and provide diverse resources (e.g., research, staff, day-to-day operations, meeting spaces, offices, technical assistance) to help carry-out day-to-day CID-related activities. This partnership would be even more beneficial for the CID in its early years considering the need for the improvement district to run as efficiently as possible due to its relatively low initial annual revenue.
Radial Venn Diagram showing Cross-Sector Partnerships suggested for Holistic Economic Development & Proposed 'West End Alliance'
Diagram shows the continuous relationship between the Proposed 'West End Alliance' and West End CID
West End CID Proposed Boundary
The following is a spatial map of the West End Community Improvement District Proposed Boundary. The initial proposed boundary consists of 163 total parcels and 110 owners. Total assessed value for these parcels is roughly $33 million, which equates to an estimated $164,000 of total revenue at annual 5 millage property tax rate. Once the CID is birthed, the boundary could be expanded to include the entire business district (increasing its revenue) without having to go through the arduous consent process.
Proposed Map of West End CID and Initial Member Parcels
Proposed West End CID Budget
Based on the initial revenue projection and a proposed budget from a similarly sized CID (the Granville Business Improvement District in Milwaukee, Wisconsin), the studio has developed a sample budget for the proposed West End CID. The budget is intended to show how a similarly sized CID can still be relatively effective in carrying-out the core CID activities. The Granville Business Improvement District 2014 proposed operating plan can be found here: http://www.granvillebusiness.org/wp-content/uploads/2013/05/OperatingPlan2014.pdf
Furthermore, talks with CID experts and workgroups indicated that a successful CID must produce annual revenue greater than $250,000 to survive. The issue, it appears, is that administrative costs below this threshold often take up a significant portion of the overall budget, sometimes reaching close to 50%. Thus, the studio sought to explore possible methods for 'floating' the West End CID's administrative costs through community partnerships. The studio estimated that $85,000 annually would need to be sought for 3 years administrative costs or roughly $250,000.
The following list is a small menu of potential West End CID grant funding opportunities. The idea is that many of these partners may have a vested interest in CID-specific activities and projects that directly benefit their mission, goals, or local assets.
- +Foundations (e.g., Community Foundation of Greater Atlanta)
- +Financial Institutions (e.g., Bank CDCs and local institutions within the CID boundary)
- +State Institutions (e.g., DCA CDBG funding)
- +National Chain Stores and Franchisors (e.g, funds supporting high revenue grossing local chains and franchisees)
- +The sample budget below is based on receiving this $85,000 annual grant funding.
Sample Annual Budget for West End CID
Leveraging Revenue to Attract Outside Funding Opportunities
In recent years, Georgia CIDs have had a successful history of leveraging their existing funds to attract private as well as regional, state, and federal funds for large-scale projects. The CID serves as the driving force for developing planning studies, design proposals, and comprehensive analysis needed to attract these funding opportunities. Recent studies indicate the financial power of CIDs, finding that Georgia CIDs routinely produce a 10 to 1 return on investment (ROI) for every dollar collected (Lilburn CID).
Leveraging the ARC's LCI Program
An important step for realizing the studio's proposed initiative is an updated LCI (Livable Centers Initiative) implementation plan that serves as a roadmap for future growth and development. The CID could serve as a driving force for securing funding for this new LCI study and helping to implement proposed comprehensive strategies. The ARC allocated $18 million in study funds for the years 2000 to 2017 ($1 million annually). Since its inception in 1999, LCI has assisted 113 communities with approximately $15 million in planning grants to devise strategies that reduce traffic congestion and improve air quality by better connecting homes, shops and workplaces.
In addition to the study funds, the ARC also approved an initial allocation of $350 million for priority funding of transportation projects resulting from Livable Centers Initiative studies. Another $150 million was approved for these projects in the 2030 RTP. The total commitment from the ARC for transportation projects resulting from completed LCI studies is $500 million. So far, $173 million has gone to help recipients build transportation projects that help them accomplish their goals.
Due to feedback received by the ARC, the ARC committed more than 40 percent of 2012 LCI study funds to support existing LCI communities. Then, in 2013, the ARC committed over 60 percent of LCI funds to existing LCI communities. The ARC recognized that additional assistance was needed to further the efforts of local governments and CIDs/non-profits in existing LCI areas. This is where an opportunity exists for the West End. For a community like West End that has already completed an LCI, the ARC provides the following additional resources:
After completing an LCI study and creating a vision, a community is eligible for an LCI Supplemental Study to develop further plans to help implement their overall vision. These funds are frequently used to focus on issues like access management, zoning changes and housing issues. Communities may also receive assistance through ARC's Community Choices program, which provides cities and counties with free technical assistance and resources to implement innovative policies and plans. Once a community has a plan in place and is ready to implement its vision, it can apply for LCI transportation funds to help it build the transportation projects necessary to bring the vision to life.
The LCI transportation capital grants provide both an incentive and an implementation tool for communities. The grants to date represent:
- +$500 million commitment for transportation projects through 2040.
- +$203 million programmed between FY 2003-2017 for design, right-of-way and construction projects.
- +$34 million of new LCI transportation projects announced in projects within scoping phase (not yet in TIP).
- +$24.2 million in LCI transportation project funds for MARTA station area improvements affecting 34 of 38 MARTA stations
Midtown Improvement District Case Study
One example of how a CID uses funds to achieve its stated goals is the Midtown Improvement District (MID) (which works in support with Midtown Alliance). The MID provides a good example of some of the projects that can be accomplished through a CID and how a CID may leverage funds maximize its benefit to the community. Over the last 12 years, the MID has contributed over $20 million to leverage more than $400 million in public and private funding to:
- +Construct pedestrian and bicycle improvements
- +Enhance transit accessibility and traffic flow
- +Provide needed public park spaces, and
- +Carry out other special projects
The following figure provides a snapshot of how Midtown Alliance breaks down this leveraging.
Midtown Cityscapes Investment Leveraged for Public Funding
Further, according to Midtown Alliance, "these investments have transformed Midtown's major corridors with new sidewalks and bicycle facilities, decorative lighting, street trees, landscaping, improved crosswalks, and traffic signal management - all of which reinforce the district's strong urban identity." Additionally, "Midtown Alliance continues to implement capital improvements and sponsor special projects to maintain and enhance the district."
Some of the projects Midtown Alliance has been able to facilitate since 2001 have resulted in:
- +Over 14 miles of new sidewalks
- +Approximately 4 miles of new planned and constructed bicycle facilities
- +More than 700 new street and pedestrian lights
- +Over 720 shade trees within public right of ways; and
- +Three new public plazas along Atlanta's signature corridor, Peachtree Street
The breakdown of these expenditures and expenses can be seen in the following figure:
Midtown Cityscapes Investment Leveraged for Public Funding
Some of the current projects that Midtown Alliance and MID are working on include:
- +The 10th Street Cycle Track - a partnership between the City of Atlanta, the PATH Foundation, and Atlanta BeltLine, Inc.;
- +Traffic Management Projects - including such things as traffic signal management, intersection improvements, wayfinding signage, and other strategic transportation improvements;
- +Long-Range Planning - updating documents and communicating with residents regarding the long-term vision of Midtown;
- +Traffic Operations Program - a partnership with the City of Atlanta and the Georgia Department of Transportation that seeks to implement a signal management program for almost 100 traffic signals in the Midtown area;
- +Parks and Plazas - developing greenspace and pocket parks throughout the Midtown area; and
- +Other Special Projects and Enhancements - such as routine maintenance, landscape management, transit stop improvements, sanitation management, public art, and various amenities and urbanism initiatives (like Little Free Library).