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Westside Baltimore Advisory Services Panel
December 5-10, 2010
The Westside,
Baltimore, Maryland
A ULI Advisory Services Panel
December 5-10, 2010
Westside Baltimore Advisory Services Panel
December 5-10, 2010
Introduction
Glenda Hood
Former Mayor of Orlando and Secretary of State of Florida
Orlando, Florida
Westside Baltimore Advisory Services Panel
December 5-10, 2010
Sponsors
Westside Baltimore Advisory Services Panel
December 5-10, 2010
About ULI-What We Do
The Urban Land Institute (ULI) is a nonprofit research and education organization that focuses on issues of land use and real estate development.
ULI’s Mission:
To promote leadership in the responsible use of land to create and sustain thriving communities worldwide
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Westside Baltimore Advisory Services Panel
December 5-10, 2010
About ULI-Who We Are With over 30,000 members worldwide, the heart of the ULI experience is an open exchange of ideas, networking opportunities, and the ability to work with the leaders of the land use industry.
Members include:
•Developers
•Builders
•Engineers
•Attorneys
•Brokers
•Planners
•Market Analysts
•Investors, Bankers and Financiers
•Academicians
•Architects and Designers
•Public officials
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Westside Baltimore Advisory Services Panel
December 5-10, 2010
Advisory Services at ULI
• Over 600 panels since 1947
• 15-20 panels a year
• Panels provide independent, objective, and candid advice to governments, private firms and non-profits
• Panelists are volunteers
• Process – Review background materials
– Receive a sponsor presentation & tour
– Conduct stakeholder interviews
– Consider data, frame issues, and write recommendations
– Make presentation
– Produce a final report
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Westside Baltimore Advisory Services Panel
December 5-10, 2010
Panelists
Panelists
Glenda Hood, Chair
Abby Ferretti
Owen Lang
Stanley Lowe
Betty Massey
Ehud Mouchly
Tom Murphy
Ranne Warner
ULI Staff
Caroline Dietrich
Patrick Pontius
Ted Thoerig
Westside Baltimore Advisory Services Panel
December 5-10, 2010
A Collection of Neighborhoods
Westside Baltimore Advisory Services Panel
December 5-10, 2010
The Westside
Westside Baltimore Advisory Services Panel
December 5-10, 2010
Panel Assignment
How can the Westside attract new residents and businesses?
• Market Potential
• Historic Character
• Access to Transportation
• Arts, Retail, Residential, and Office
• Open Space
• Anchor Institutions
• Implementation
Westside Baltimore Advisory Services Panel
December 5-10, 2010
Vision and Leadership
Westside Baltimore Advisory Services Panel
December 5-10, 2010
Market Potential
Abby Ferretti
Principal
Partners for Economic Solutions
Washington, District of Columbia
Westside Baltimore Advisory Services Panel
December 5-10, 2010
Economic Climate
$2.4 Billion in research dollars
1,200,000
1,250,000
1,300,000
1,350,000
2000 2001 2002 2003 2004 2005 2006 20072008
2009
To
tal E
mp
loym
ent
Baltimore Region, Non-Farm Employment, 2000-2009
2,400,000
2,500,000
2,600,000
2,700,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Baltimore Region, Population Growth, 2000-2009
Westside Baltimore Advisory Services Panel
December 5-10, 2010
Office Market Conclusions
• Build on the existing institutional
assets:
– University of Maryland
– University of Maryland Medical Center
– University of Maryland Bio Park
• UMB Climbing to $700 Million
annually
• Natural synergy with medical office,
research, incubators, hospital &
university growth
Westside Baltimore Advisory Services Panel
December 5-10, 2010
The Actual Storyz
• Tale of two
markets, not one
• Proximity and
connections to
other activity hubs
Catalysts: State Center,
MICA, & UB
Catalysts
Central
Business
District
Catalysts: Sports &
Convention Attractions
Westside Baltimore Advisory Services Panel
December 5-10, 2010
Market Context
North Market Area
4,476 residents
2,697 households
$ 24,189 median HH income
South Market Area
3,453 residents
1,724 households
$36,499 median HH income
Westside Baltimore Advisory Services Panel
December 5-10, 2010
Residential North Market Current & Future
New Household Demand
• 300 to 400 Rental Units (Apartments)
• 450 to 500 For-Sale Units
(Townhouses)
Owner 8%
Renter 92%
Existing Households
Westside Baltimore Advisory Services Panel
December 5-10, 2010
Residential South Market Current & Future
Owner 3%
Renter 97%
New Household Demand
• 950 to 1,140 Rental Units
• 450 to 500 For-Sale Units
Existing Households
Westside Baltimore Advisory Services Panel
December 5-10, 2010
Retail 101
Retail relates to customer spending habits/patterns
• Evaluate the existing supply
• Demographics of resident and daytime population (workers)
• Competitive environment
Total
Retail
Supply
Total
Retail
Demand
Total
Unmet
Retail
- =
Westside Baltimore Advisory Services Panel
December 5-10, 2010
Defining Retail Categories
• Neighborhood Goods & Services
Westside Baltimore Advisory Services Panel
December 5-10, 2010
Defining Retail Categories
• Food & Beverage
Westside Baltimore Advisory Services Panel
December 5-10, 2010
Defining Retail Categories
• General Apparel, Furnishings & Other Merchandise
Westside Baltimore Advisory Services Panel
December 5-10, 2010
Retailer‟s Needs
• Population
• Density
• Income
Westside
• Population 9,200
• Daytime Population 43,000
• Visitors 400,000
Westside Baltimore Advisory Services Panel
December 5-10, 2010
Retailer‟s Needs
Multiple Sources of Demand
• Westside -not only residents, but daytime workers and
visitors that constitute demand
+ Area Residents
+ Daytime Population
+ Visitors
= Total Demand
Westside Baltimore Advisory Services Panel
December 5-10, 2010
Downtown Baltimore Retail Conditions
• Inner Harbor captures a
percentage of demand
• Shoppers leave downtown
Baltimore for regional shopping
centers in suburbs
– Towson Town Center to
North
– Arundel Mills
– The Mall at Columbia
Westside Baltimore Advisory Services Panel
December 5-10, 2010
Retail Demand – North Market Area, By 2020
North Market Area
6,000 sf Nbhd Goods & Services
4,000 sf Food & Bev
5,000 sf GAFO
• Building on State Center as Catalyst
Westside Baltimore Advisory Services Panel
December 5-10, 2010
Retail Demand – South Market Area By 2020
South Market Area
57,000 sf Nbhd Goods & Services
60,000 sf Food & Beverage
21,000 sf GAFO
• Building on University of Maryland and
other anchor institutions
Westside Baltimore Advisory Services Panel
December 5-10, 2010
Arts Impact on South Area Retail Demand
• Current visitation estimates
350,000 to 400,000 visits annually
• Supports two restaurants/bars with activity
before and after art events
• Impact of increased arts activity
500,000 visits annually
• Increased activity could support one
additional restaurant/bar
• High risk of cannibalizing other city arts areas-
Station North
Westside Baltimore Advisory Services Panel
December 5-10, 2010
Destination Retail – Lexington Market
• Develop a brand and reputation for unique and high quality food items
– Capitalize on the „I shop at “the Market’ instead of the supermarket trend
• Five other markets offer the same option
• Capture the Westside audience and broader community
Westside Baltimore Advisory Services Panel
December 5-10, 2010
Retail Conclusions
•Not about the market alone
•It‟s about the market‟s
environment
•Without clean, safe & well
maintained
•Demand goes from 150,000
square feet to zero
Westside Baltimore Advisory Services Panel
December 5-10, 2010
Market Conclusions
The Best Route Forward:
STEP ONE: Convert the environment and
support existing businesses
STEP TWO: Increase the number of “rooftops”
(a.k.a., people)
STEP THREE: Concentrate the retail district into
an identifiable, prosperous core at the edge of
the university including “ the Market”
STEP FOUR: Encourage university, medical
driven office and R&D development
Westside Baltimore Advisory Services Panel
December 5-10, 2010
Planning, Development, and Design Strategies
Ranne Warner
Developer
Zeckendorf Development
New York, New York
Owen Lang
Consultant
Owen Lang Consulting
Petaluma, California
Ehud Mouchly
Owner
READI, LLC
Los Angeles, California
Westside Baltimore Advisory Services Panel
December 5-10, 2010
Baltimore: Charmed Urban Renewal
Westside Baltimore Advisory Services Panel
December 5-10, 2010
The Westside: A Need for Neighborhood Regeneration
Westside Baltimore Advisory Services Panel
December 5-10, 2010
Identifying the Areas for Regeneration
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December 5-10, 2010
Redirecting the Energy
Westside Baltimore Advisory Services Panel
December 5-10, 2010
Observations
Westside Baltimore Advisory Services Panel
December 5-10, 2010
Neighborhood Assets
Westside Baltimore Advisory Services Panel
December 5-10, 2010
Creating the Linkages
Westside Baltimore Advisory Services Panel
December 5-10, 2010
Design Standards
Westside Baltimore Advisory Services Panel
December 5-10, 2010
Financing the Vision – or: “Show Me The Money!!!” (-Jerry Maguire)
• City of Baltimore – a national leader in innovative financing of public-private ventures
• Financing approaches – the “Chinese restaurant menu” metaphor
• The need for a “financial czar”
• The menu
– Area designations promoting area benefits
• Business improvement districts, special assessment districts, empowerment
zones, etc.
Westside Baltimore Advisory Services Panel
December 5-10, 2010
Financing the Vision (cont‟d)
– Sources of funds: cash (equity investment, loans, bonds, credit enhancement,
guarantees)
• Commercial lenders
• Institutional lenders and Institutional investors
• “Socially responsible” / “Double Bottom Line” investors (SRI‟s)
• Private sector Investors
• Private Foundations
• City of Baltimore
• State of Maryland
• Federal (e.g., CDBG)
– Sources of funds – cash equivalents
• Land swaps
• Land contributions – through outright $1 conveyance / non-market rate ground
leasing
Westside Baltimore Advisory Services Panel
December 5-10, 2010
Financing the Vision (cont‟d)
– Tax Credits
• Historic tax credits
• Low income housing tax credits (LIHTC)
• New markets tax credits (NMTC)
– Have NMTC‟s been fully exploited?
– Small developer loan fund
» Acquisition, predevelopment, development funding to assist small
developer
» See example in ULI‟s post-Katrina Forum for Mississippi Gulf
Coast Renaissance Corporation
• General note: Potential need for City gap financing and credit enhancement
• Property tax credits and abatements
– Double edge sword that may impact on City‟s property tax receipts
Westside Baltimore Advisory Services Panel
December 5-10, 2010
Financing the Vision (cont‟d)
– Land / existing structures dispositions and acquisitions
• Tax increment financing (TIF)
• Public sector assemblages and single parcel RFP‟s
• Public sector “One-off” small parcel / existing structure auctions
• Free-market / small parcel acquisitions
– Revenue generating public sector land uses / revenue bonding potential
• Arena
• Lexington Market
• Parking
Westside Baltimore Advisory Services Panel
December 5-10, 2010
Financing the Vision (cont‟d)
Westside Baltimore Advisory Services Panel
December 5-10, 2010
Housing Issues
• Encourage and support home ownership - attached townhomes and stacked flats condos
– Community benefits from increased homeownership
• Incremental higher density absorption inside the Westside boundary
– Corollary danger of cannibalizing from rentals
• Higher community awareness, commitment and civic pride
• Improved community maintenance
• Residents with higher disposable income
• More stable population
– Issue: Baltimore mid-range TH & Condo ownership rates are low
• Except at high-end waterfront units
• Possible causes: High property taxes and HOA fees
Westside Baltimore Advisory Services Panel
December 5-10, 2010
Housing Issues (cont’d) • Employer-assisted housing inside the Westside - recommended constructive intervention by
major employers
– Important tool in attraction and retention of employees – faculty and staff, medical staff
• Opportunities for housing assistance to graduate students and families
– Promoting “green commuting” – walking and bicycling
– Ideas for home ownership “soft” assistance by employers and City
• Down payment assistance
• Employer assisted financing Soft second mortgages
• Faith=based organizations and charities housing assistance
• Support lease-to-own programs / future condo conversions
– Higher construction costs due to condo building standards
– Reduction in price of entry through modified ownership structures
• Homeownership with capped / shared appreciation
– See example in ULI‟s post-Katrina Forum for Mississippi Gulf Coast
Renaissance Corporation
Westside Baltimore Advisory Services Panel
December 5-10, 2010
Housing Issues (cont‟d)
– Employer-assisted homeownership on employer‟s ground leases with shared equity
• Use vacant parcels, adaptive re-use of underutilized parcels / structures
• A business model used successful on campuses of the University of California and
California State University
• Similar model currently being evaluated by Los Angeles County for County
employees
– Community land trust business model: Homeownership with shared appreciation on
community-contributed land.
Westside Baltimore Advisory Services Panel
December 5-10, 2010
Implementation
Tom Murphy
Senior Resident Fellow, ULI/Klingbeil Family
ULI-the Urban Land Institute
Washington, District of Columbia
Stanley Lowe
CEO/President
Pittsburgh Neighborhood Preservation Services
Pittsburgh, Pennsylvania
Betty Massey
Executive Director
Mary Moody Northen Endowment
Galveston, Texas
Westside Baltimore Advisory Services Panel
December 5-10, 2010
Implementation
The Tower of Babel
Cartoon by Educa
Westside Baltimore Advisory Services Panel
December 5-10, 2010
Implementation
MONDAY MORNING AGENDA:
• Public Safety
• Lexington Market
• Redefinition of the role of UMB
• Tension between historic preservation and development, esp. in the
Superblock
• Disposition of BDC properties
• Opportunity to expand the growing vibrancy of the Mount
Vernon/Seton Hill neighborhoods into Howard Street corridor
• Reinvigorating financial institutions’ partnerships
Westside Baltimore Advisory Services Panel
December 5-10, 2010
Implementation
University of Maryland
Lexington Market
Westside Baltimore Advisory Services Panel
December 5-10, 2010
Implementation
Pike Place Market
Seattle, Washington
Fanueil Hall
Boston, Massachusetts
Westside Baltimore Advisory Services Panel
December 5-10, 2010
Implementation
The Pittsburgh Promise
A $100 million Partnership
Each high school senior
graduating from a Pittsburgh
public school that maintains a C
average or above receives a
$20,000 educational
scholarship.
Westside Baltimore Advisory Services Panel
December 5-10, 2010
Implementation
Westside Baltimore Advisory Services Panel
December 5-10, 2010
Implementation
Over-the-Rhine,
Cincinnati, Ohio
Westside Baltimore Advisory Services Panel
December 5-10, 2010
Implementation
Map of city-owned
properties in the
Westside
Westside Baltimore Advisory Services Panel
December 5-10, 2010
Implementation
Westside Baltimore Advisory Services Panel
December 5-10, 2010
Implementation
Georgia Tech Looking up Howard
Westside Baltimore Advisory Services Panel
December 5-10, 2010
Banks Operating in the City of Baltimore
Institution Name Total Assets($000)
1 M&T Bank $ 10.37 billion
2 PNC Bank $ 4.9 billion
3 Wachovia Bank $ 4.38 billion
4 Bank of America $ 3.43 billion
5 BB&T $ 3.15 billion
6 Sun Trust Bank $ 1.9 billion
7 Susquehanna Bank $ 1.1 billion
8 First Mariner Bank $ 1.06 billion
9 Wilmington Trust FSB $ 1.05 billion
10 Columbia Bank $ 898.3 million
Westside Baltimore Advisory Services Panel
December 5-10, 2010
At the End of the Day, it‟s Still
All About:
MONEY $ …
Westside Baltimore Advisory Services Panel
December 5-10, 2010
Source: Citizens Guide to the Fiscal 2011 Budget – City of
Baltimore
Baltimore‟s Operating Budget Expenditures
$1.383 billion
Westside Baltimore Advisory Services Panel
December 5-10, 2010
State-supported, 844,500,000
Non State-Supported, 730,700,000.00
UMD - State and Non-State Revenue Sources
University Budget Expenditures
$1,575,200,000 billion
Westside Baltimore Advisory Services Panel
December 5-10, 2010
Westside Baltimore Advisory Services Panel
December 5-10, 2010
1st Mariner Arena
Westside Baltimore Advisory Services Panel
December 5-10, 2010
Implementation
Discovery Green
Houston, Texas Millennium Park
Chicago, Illinois
CityGarden
St. Louis, Missouri
Westside Baltimore Advisory Services Panel
December 5-10, 2010
Teaching Our Youth to Become Great Entrepreneurs
Westside Baltimore Advisory Services Panel
December 5-10, 2010
Implementation
Once In, All In, Always In: No Exit Strategy
Westside Baltimore Advisory Services Panel
December 5-10, 2010
Conclusion
Westside Baltimore Advisory Services Panel
December 5-10, 2010
Conclusion
December 13:
Time to get to work!