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Strategies for Market-Ready Redevelopment Riverfront Redevelopment Project

APA Upper Midwest Conference 2015

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• Theme: Early Stages of Project Development. “The sausage-making process.”

Strategies for Market-Ready Redevelopment

Mayor Bob Miller Monona

Eric Nordeen Ascendant Holdings, LLC Developer

Sonja Reichertz, AICP Monona Planner

Scott Harrington, AICP Vandewalle & Associates Planner

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Key Strategies 1. Build a Foundation for Success 2. Courage to Seize the Moment 3. Create Approach to Site Control 4. Strong Vision with Adaptable Execution 5. Understand the Site-Market Relationship 6. Establish Metrics and Targets 7. Public-Private Partnership Approach 8. Predictable and Timely Process

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City Wide Land Use

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Overview of Site’s Challenges

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1. Create a Foundation for Success • Build a Track Record of Success

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• Redevelopment Area #3 created in 1998 for a small portion of the site. Monona State Bank only development so far.

• The 2004 Comprehensive Plan identified the area as a primary target. No substantial investment in the last 10 years.

1. Create a Foundation for Success • Sustained Commitment to Planning

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2. Courage to Seize the Moment

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Private Property, No Access

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Stunning Site Views

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Need for a Public Waterfront

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Please, No!

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• Strong & clear yet flexible vision

Public Waterfront Space Economic Development/Tax Base Mixed-use Development Recognized Destination Integrated Parking Quality Design & Density

2. Courage to Seize the Moment

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• Manage the Message

Things to Avoid

2. Courage to Seize the Moment

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An urban waterfront destination serving as a year-round gathering place and recreational “trailhead”, focused on active healthy lifestyles, in a village-like setting.

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3. Creative Approach to Site Control • Understand owners’ and their objectives

$2.2 Million Total Acquisition Cost

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Four Lakes Yacht Club/ Bourbon Street Grille

3. Creative Approach to Site Control • Understand your limitations (legally and politically)

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3. Creative Approach to Site Control • Determine the best approach

• Third party acquisition (LLC) • Purchase options • Deferral to developer • Direct negotiations

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4. Be Adaptable • Don’t be afraid to alter approaches

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4. Be Adaptable • Understand that the same vision can take

multiple physical forms

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5. Understand the Site-Market Relationship

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5. Understand the Site-Market Relationship • Physical and regulatory site constraints and

opportunities

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5. Understand the Site-Market Relationship • Regional and local site context

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Key Site Assets 1. Proximity and Easy Access to

Downtown Madison, UW Campus, and Alliant Center

2. Yahara River Frontage 3. Lake Loop Bike Trail 4. Visibility from the Beltline 5. Easy Access to the Beltline and

Regional Transportation System

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5. Understand the Site-Market Relationship • Prevailing market conditions

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5. Understand the Site-Market Relationship • Translating market to site (master plan)

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• General Mix of Uses

• Vertical living • Lodging • Diverse dining • Community businesses • Specialty retail • Offices

6. Establish Targets and Metrics

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• 2-3 buildings • Preferred uses: hotel,

restaurants, commercial, and residential

• 6-8 story hotel • 60-100 rooms • 1-2 restaurants within/attached • 1-2 levels of commercial facing

public plaza and parking • 20-24 residential units or offices

above • 2 levels of 220-260 space parking

structure • Vehicular access from new street

6. Establish Targets and Metrics • Density/Intensity

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Character • Of the place –

(Monona, Yahara River) • Welcoming and

accessible to public • Intimate and open • Functional hardscapes • Beautiful and

ecological green space • Comfortable • Active • Flexible • Settings for activity

Themes • River, its ecology,

connection to chain of lakes

• Boats (paddle and power)

• Historic cultures • Gathering people

together • “Trailhead” for bikes

and boats

6. Establish Targets and Metrics • Supporting public improvements

Public Space

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Sub-Area Uses and Values

Type of Development West EndNorth

CentralBroadway Riverfront Total

Residential Units 64 130 20 214 Sq. Ft. 70,000 130,000 18,000 218,000Commercial Sq. Ft. 3,000 5,000 12,000 20,000Restaurant Sq. Ft. 6,000 10,000 16,000Office Sq. Ft 26,700 26,700Hotel Rooms 100 100 Sq. Ft. 60,000 60,000

Total Square Feet 105,700 135,000 100,000 340,700

Total Value Increment* $12,629,500 $14,107,600 $10,996,800 $37,733,900

*Net value after deducting the value of buildings in each sub-area to be demolished

• Assessed Values 6. Establish Targets and Metrics

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Sub-Area Costs

Expense West EndNorth

CentralBroadway Riverfront Total

% of Total

Land, Demo & Remediation $3,191,850 $1,379,400 $2,029,500 $6,600,750 45.52%

Public Improvements Streets & Utilities $1,279,439 $214,590 $69,000 $1,563,029 Plaza & Bike Path $245,640 $1,644,270 $968,760 $2,858,670 Parking Structure $3,477,600 $3,477,600 Sub-Total $1,525,079 $1,858,860 $4,515,360 $7,899,299 54.48%

Total Cost $4,716,929 $3,238,260 $6,544,860 $14,500,049 100%

Required Tax Values* $11,500,000 $8,250,000 $15,000,000 $34,750,000

* Minimum assessed values required to pay for land and improvements entirely from project increment not including any direct developer incentives.

• Phasing and Sequencing 6. Establish Targets and Metrics

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7. Public-Private Partnership Approach

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7. Public-Private Partnership Approach • Shared vision and goals

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7. Public-Private Partnership Approach • Collaborative Problem-Solving • Win-Win Solutions

Insert appropriate graphic

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8. Predictable and Timely Process • Defined deliverables • Defined schedule • Interim milestones

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8. Predictable and Timely Process • Access to decision makers

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Key Strategies, Again 1. Build a Foundation for Success 2. Courage to Seize the Moment 3. Create Approach to Site Control 4. Strong Vision with Adaptable Execution 5. Understand the Site-Market Relationship 6. Establish Metrics and Targets 7. Public-Private Partnership Approach 8. Predictable and Timely Process

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