Brazos Promenade presentation to Waco City Council: Dec. 1, 2015

PowerPoint Presentation

Proposed Memorandum of Understanding with Catalyst Development for the Development of the Brazos RiverfrontCity Council Work SessionCynthia GarciaDecember 1, 201511Request for ProposalIssued: March 16, 2015Responses Due: July 29, 2015Received 3 ResponsesAfter reviewing all of the responses, staff decided to interview all of the groups that responded to the Request for Proposal2Texas Central PkwyImperialAAFES1701 Exchange Brazos Riverfront

The CommonsPark LandPark Land & The CommonsNo Restrictions3Criteria Used During InterviewExperienceAbility to FinanceAbility to bring partners to the tablePast ProjectsProposed TimelineConcept4Recommended DeveloperCatalyst Urban Development Experienced DeveloperCurrently developing projects in Arlington, Fort Worth, Rowlett and DallasProven ability to develop and finance a large mixed use development

5BRAZOS PROMENADE

COUNCIL PRESENTATIONCITY OF WACODecember 1, 2015

SUMMARY OF OUR VISION TO CREATE AN URBAN MIXED-USEWATERFRONT DESTINATION

BaylorUniversityBrazos RiverMcLaneStadiumHiltonWacoHotelIndigoResidenceInnFort Fisher ParkTexas Ranger Hall of Fame and MuseumPotentialBaylor Scott & WhiteSports Medicine CenterUniversity Parks DriveFranklin AvenueDowntownWacoCITYSITESBRAZOS PROMENADE

Intelligent. Urban. Community.

6IntroductionCatalyst TeamOur RolesVisioningProcess

Topics:

COUNCIL PRESENTATIONCredis: Planning work performed while at RTKL Associates Photo credits: David Whitcomb

BRAZOS PROMENADE


Private real estate company with diverse backgrounds in planning, finance, development and constructionOur principals have a 25 year history in the creation of successful urban mixed-use and residential neighborhoodsSimultaneous focus on traditionally-financed deals and public/private partnershipsHave sourced $2.3B in transactions and have $240M currently under development and construction in TexasProjects we have worked on received 85+ awards from national, regional and local industry groups Our Mission is the creation of Great Places that generate economic, experiential and social successes

The Catalyst Team

Credis: Planning work performed while at RTKL Associates Photo credits: David WhitcombCOUNCIL PRESENTATIONBRAZOS PROMENADE


Our Approach

We utilize a diverse approach to engaging the market, sourcing opportunities, and implementing investment. 1. Development:$240M in Urban Development Currently UnderwayTransit-Oriented, Mixed-Use, and Urban Housing

2. Finance:$2.3B across 195+ Transactions Since 2009Specialize in Public/Private and Complicated Finance

3. Planning:Over 45 Municipalities, Transit Agencies, Banks, Land OwnersUrban Redevelopment, Market, Finance and Design Strategies

Current Strategic Partners:

Private Public Institutional-- Lennar -- City of Dallas-- Holiday Fenolio-- Integral-- City of Arlington-- Jones Lang LaSalle-- Landplan-- City of Rowlett-- 15 banks-- Cambridge-- City of Fort Worth-- 3 NYSE REITs

Woodlands Town Center, TX 1

Legacy Town Center, Plano, TX 1West Village District, Dallas, TX 1

Midtown District, Houston, TX 1 Paseo Colorado, Pasadena CA1

The Triangle Austin, TX 1 State/Thomas District Dallas, TX 1

Roosevelt District, Phoenix, AZ 2

Downtown Garland, TX 5

Credits: 1. Planning work performed while at RTKL Associates Photo credits: David WhitcombUptown Square, Denver, CO 2

Addison Circle Addison,TX1Uptown District Dallas, TX 2

Portofino, Farmers Branch, TX

Lancaster Urban Village, Dallas, TX

Las Colinas Station Irving, TXDevelopment Planning Finance

COUNCIL PRESENTATIONBRAZOS PROMENADE


A. Master/Horizontal DeveloperReady the Environment for Private Investment:

Define Market-Based Program and District VisionRefines Existing Planning and Determine Catalytic ProjectsStrategize and Facilitate Necessary Land AssemblyCoordinate Horizontal Public ImprovementsHelp Frame Necessary Public Actions (policy, incentives, if any)Undertake Market Communication Program-- Bring Separate Investors on other Components as Needed

Our RolesB. Vertical DeveloperAssemble Capital and Implement New Development:

Engages in Marketing Discussion with Citys TeamPerforms Separate Underwriting AnalysisWorks with City Team on Project Requirements and DesignSource Debt and EquityAcquire Property as Needed-- Implement Vertical Development

We have found the following 2-part role most effective for speed and scale of investment across land usesCredits: Catalyst Urban DevelopmentCOUNCIL PRESENTATIONBRAZOS PROMENADE


Paris Rutherford-- Coordinates Development Efforts-- 25 Years Experience in Mixed-Use ResidentialPast Experience:President Woodmont Investment CompanyDirector RTKL AssociatesGlobal Practice Leader of RTKL Planning Division

Harvard UniversityUniversity of Southern CaliforniaRhys Heinsch-- Coordinates Financing & Operations-- Over 195 Transactions Closed since 2009Past Experience:Vice President Woodmont Investment CompanyPrincipal Cole AdvisorsTrammell Crow Family Holdings

University of TexasMcCombs School of Business

OUR PRINCIPALSPROJECT TEAMThe City

General Partnerand Developer

Design andManagement TeamCOUNCIL PRESENTATIONBRAZOS PROMENADE


11The Site Opportunity A Connective Waterfront District

Downtown Waco RiverfrontBaylorUniversityBrazos RiverMcLaneStadiumHiltonWacoHotelIndigoResidenceInnFort Fisher ParkTexas Ranger Hall of Fame and MuseumPotentialBaylor Scott & WhiteSports Medicine CenterUniversity Parks DriveFranklin AvenueDowntownWacoCITYSITESCOUNCIL PRESENTATIONBRAZOS PROMENADE


Small TownMixed-Use ExperienceWaterfront PromenadeMarket ViableSustainableDowntown ExperienceLive MusicFarm to TablePublic WaterfrontCenter of TownFarmers MarketRestaurantsBaylor ConnectionsWalk to WorkCommunity CenterVarious DensitiesOutdoor CafesEyes on the StreetGreat StreetsUniquely WacoSmall Business FriendlyRetain Intellectual CapitalDowntown ExpansionStronger University ParksPeople PlacesHip and CoolThemesUrban ResortQuality DesignFiremans Tower IconCOUNCIL PRESENTATIONBRAZOS PROMENADE


Market FactorsGenerated using Census data & ESRI

B. Downtown EmploymentEmployment:37,796 jobsWhite Collar (Office):17,689 jobs (46.8%)2020 WC Jobs Added:194 jobs

10-Minute Drive Time Trade Area

C. Baylor ForecastStudent Population:16,263Employment:9362020 Student Pop:17,9252020 Employment:1,033A. Waco Urban Residential

2015 Population: 98,4632015 Households:34,214 (2.68 avg. size)2015 Renter HH:51.7%2015 Median Income: $27,8792020 Population:101,2802020 Households:35,280D. Retail and RestaurantsExcess supply is absorbing the majority of consumer dollars within the trade area. Our experience shows a place-based development approach will help induce demand for restaurants and experience-based retail.COUNCIL PRESENTATIONBRAZOS PROMENADE


Vision High Performing Urban Mixed-Use Place with 24-7 ProgrammingCOUNCIL PRESENTATIONBRAZOS PROMENADE


Master Plan Coordinated District for All Property Owners

University Parks Dr.2nd StreetWebster AveClay Ave2nd St CrossingI-35

Allowable Uses COUNCIL PRESENTATIONBRAZOS PROMENADE


2nd StreetWebster AveClay Ave2nd St CrossingI-35

Note: Building footprints and landscape design conceptual in nature and subject to change. Non-city properties shown for visioning purposes only; such development based on owners desire to be part of a larger district. Streetscape improvements along University Parks intended to go east of I-35 in concept. Riverfront improvements subject to US Army Corps and other approvals. Farmers Market to remain.University ParksAllowable Uses Master Plan Initial Concept for City Property Contained in RFPCOUNCIL PRESENTATIONBRAZOS PROMENADE


Credits: City of Waco, TX

Master Plan Multi-Purpose Open Space: Farmers MarketUniversity Parks Dr.2nd StreetWebster AveClay Ave2nd St CrossingI-35



Master Plan Multi-Purpose Open Space: Performance

Credits: City of Arlington, TXUniversity Parks Dr.2nd StreetWebster AveClay Ave2nd St CrossingI-35



Credits: City of Dallas, TXMaster Plan Multi-Purpose Open Space: EventsUniversity Parks Dr.2nd StreetWebster AveClay Ave2nd St CrossingI-35



Credits: City of Dallas, TX

Master Plan Multi-Purpose Open Space: RecreationUniversity Parks Dr.2nd StreetWebster AveClay Ave2nd St CrossingI-35



Master Plan Webster as Parking & Event Plaza

Credits: Town of Addison, TXUniversity Parks Dr.2nd StreetWebster AveClay Ave2nd St CrossingI-35



Master Plan Mid-Rise Mixed-Use Infill with Interactive Streetscapes

Credits: Catalyst Urban DevelopmentUniversity Parks Dr.2nd StreetWebster AveClay Ave2nd St CrossingI-35



Master Plan Opportunity for Taller Buildings in Later Phases

Credits: Catalyst Urban Development




Master Plan Incorporating Firemans Tower as Refurbished Icon




Master Plan High Design Object Buildings along Promenade




Master Plan Webster Splash Pad Plaza as Northern Terminus




Master Plan Bocce Ball, Urban Putt-Putt, Concession Activities




Master Plan Waterfront Tavern on the Green with Dining Terrace




Master Plan Enhanced Service Hotel with I-35 Visibility




Master Plan Amenitized Day Slip Area and Hotel Restaurant




Master Plan Thoughtful Pedestrian Experiences Along Promenade




Master Plan Terraced Hotel Event Park




Master Plan Urban Street Definition and Friendly Streetscape




Master Plan Redefined University Parks Streetscape Hierarchy

Credits: Denver Urban Redevelopment AuthorityUniversity Parks Dr.2nd StreetWebster AveClay Ave2nd St CrossingI-35



Conceptual PhasingPhase Ia (4Q 2016 4Q 2018)

Mixed-Use Urban Residential Block-- 11,000 sf Restaurant, Fitness, Office, Amenity-- 157 Urban Residential Units-- 421 Space Parking GaragePhase Ib (4Q 2016 4Q 2019)

Mixed-Use Block (subject to deed restrictions)-- 18,000 sf of Allowable Uses-- Public Promenade Uses-- 116 Spaces Street ParkingPhase IIa (3Q 2019 3Q 2021)

Mixed-Use Urban Residential Block-- Restaurant, Fitness, Office, Amenity-- Residential and Live/Work Units-- Parking Garage and Street ParkingPhase IIb (3Q 2018 3Q 2021)

Restaurant, Venue and Park Block-- Restaurant, Fitness, Office, Amenity-- Residential and Live/Work Units-- Parking Garage and Street ParkingPhase III (3Q 2020 3Q 2022)

Hotel and Promenade Block (subject to deed restrictions)-- 150 key Hotel, Restaurant and Public Uses-- Option includes potential expansion to garage

COUNCIL PRESENTATIONBRAZOS PROMENADE


Next Steps120 Day Due Diligence Period

Define the Project:Site InvestigationDetailed Market StudyDiscussion with StakeholdersRefine PlanningDetailed ProgrammingRefine EconomicsPPP Agreement if agreeableCOUNCIL PRESENTATIONBRAZOS PROMENADE


BRAZOS PROMENADE

DISCUSSIONCITY OF WACODecember 1, 2015

SUMMARY OF OUR VISION TO CREATE AN URBAN MIXED-USEWATERFRONT DESTINATION

BaylorUniversityBrazos RiverMcLaneStadiumHiltonWacoHotelIndigoResidenceInnFort Fisher ParkTexas Ranger Hall of Fame and MuseumPotentialBaylor Scott & WhiteSports Medicine CenterUniversity Parks DriveFranklin AvenueDowntownWacoCITYSITESBRAZOS PROMENADE


38Next StepsComplete negotiations of Memorandum of Understanding (MOU)Purpose of MOU is to allow both parties to complete their due diligenceCatalyst Further refine Master Plan and timeline, determine all infrastructure needs for proposed developmentCity- complete all title work, survey and environmental studiesBoth Parties- Negotiate Lease Agreement for the City property and Incentive Agreement December 15, 2015 Council consideration of MOU

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Documents

Brazos Promenade presentation to Waco City Council: Dec. 1, 2015