Loading...
Historic Millwork District Master Plan 2 16 09TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Adoption of the Historic Millwork District Master Plan DATE: February 11, 2009 As an outgrowth of the Envision 2010 process, members of the "Warehouse District," now known as the Historic Millwork District, committee saw the need to define the district through a master plan process. Both the public and private partners have sensed the need to define the long range plan for the district, to anticipate and guide future investment and to ensure quality development. The members of the Historic Millwork District Committee are: Mike Blouin, Greater Dubuque Development Corporation President Jay Borrell, Jeld-Wen Facility Manager Paul Butler, B&G Development Partner Laura Carstens, City of Dubuque Planning Services Manager Jill Connors, Gronen Restoration Brian Dalziel, Northeast Iowa Business Accelerator Regional Director Aaron DeJong, City of Dubuque Assistant Economic Development Director Rick Dickinson, Greater Dubuque Development Corporation Executive Director and Chief Operating Officer Teri Goodmann, City of Dubuque Assistant City Manager John Gronen, Property Owner Dave Heiar, City of Dubuque Economic Development Director Bob Johnson, Property Owner Dan LoBianco, Dubuque Main Street Executive Director Tim McNamara, Property Owner Tony Pfohl, Property Owner Joel Schmidt, Alliant Energy Regional Director Michelle Schnier, East Central Intergovernmental Association Director of Housing and Human Services Jerry Schroeder, East Central Intergovernmental Association Economic Development Director Cindy Steinhauser, City of Dubuque Assistant City Manager The committee prepared the Warehouse District Revitalization Strategy that was approved by the Dubuque City Council on August 6, 2007. The first goal of that strategy was to develop a Master Plan for the district. Funding for the Plan came mostly from a grant from the United States Economic Development Administration (EDA) as well from the four major property owners, local businesses, and Dubuque Initiatives. Through a competitive bidding process, the Cuningham Group demonstrated to the selection committee that they had the most capability and creativity to help the community create a Master Plan for the District. A contract with the Cuningham Group and ERA was approved on June 2, 2008 by the City Council. The Cuningham Group work began with a June 25-27, 2008 visit to the community where several focus groups were conducted to quickly learn about the Historic Millwork District and to get community input. The consultants met with the business community, city staff, the City Council, property owners, the Envision 2010 committee, Dubuque Main Street, a general public meeting inviting the entire community and other stakeholders for their input. Cuningham Group then gave a presentation to the steering committee to outline what they had learned from the visit and gave a rough design of what they considered to be the next steps to developing the plan. City staff then provided direction over the next few months to prepare for the second input trip held October 7-8, 2008. The same focus groups met again with the consultants to be exposed to the work to date and a preliminary development summary for the district. A draft of the Master Plan was delivered to City Staff and the Steering committee for their review at the end of December 2008. The committee met and gave their comments on the plan to the consultants and those comments have been incorporated into the plan. The City Council held a work session on February 2, 2009, to discuss the plan. Andrew Dresdner of the Cuningham Group, and Chris Brewer of ERA gave a presentation of the key components of the plan. Comments were received and changes were made to the document reflecting those comments. Economic Development Director Dave Heiar is recommending adoption of the Historic Millwork District Plan. The Plan includes Demographic and Market Context and a Financial Analysis Summary. The Project Goals section outlines that the success of the district depends on several goals being met. The following are those goals stated in the Plan: ® Showcase the area as a model for sustainability • Balance the circulation system • Create a connected public realm • Reinforce the historical and cultural identity • Establish a coordinated parking strategy • Create a range of employment and housing opportunities The Sustainable Systems section describes the sustainable measures being envisioned for the district. The district is an opportunity to achieve a quality redevelopment and this plan outlines the areas of consideration for sustainable improvements. The sustainable measures are broken into five categories: • Water • Energy • The Built Environment • Vegetation and Open Space • Arts and Culture The plan defines an intended three-phase schedule for improvements. The actual timeframe for each phase will depend on the local market; however, the recent announcement by IBM to create 1,300 jobs in Dubuque by the end of 2010 will increase the local demand. The Demographic and Market Context prepared by ERA outlines the Dubuque area demographics and the potential for urban space in the community. The study found that supply of downtown urban housing is not being met in the community and that there is initial demand for 250-500 new units. According to the consultant, commercial and retail uses tend to follow residential and should enough critical mass of housing be created, new support businesses will begin to locate in the district. The Financial Analysis Summary outlines in detail the first phase of the Historic Millwork District plan. It determined the costs and potential funding shortfalls of the redevelopment schedule. The entire first phase is estimated to cost $52,200,000 and that cost is expected to be filled with many layers of private, federal, state and local sources. Of key importance to the financial feasibility is finding non-private sources to fill financing gaps equal to the benefit of federal and state historic tax credits. These credits are needed to allow the developers to achieve a reasonable financial return to compensate them for their assumed risk. I concur with the recommendation and respectfully request Mayor and City Council approval. a . v~.. Michael C. Van Milligen MCVM/jh Attachment cc: Historic Millwork District Committee Barry Lindahl, City Attorney ®UbUgUe THE CITY C)F All-America Gi1y ~_ .Mc~st~r~iece on the Mi~sissip~i 2007 TO: Michael Van Milligen, City Manager FROM: David J. Heiar, Economic Development Directo _ ~~ SUBJECT: Adoption of the Historic Millwork District Master Plan DATE: February 11, 2009 INTRODUCTION This memorandum presents for City Council consideration adoption of the Historic Millwork District Master Plan developed by the Cuningham Group and Economics Research Associates (ERA). BACKGROUND As an outgrowth of the Envision 2090 process, members of the "Warehouse District" committee saw the need to define the Warehouse District through a master plan process. Both the public and private partners have sensed the need to define the long range plan for the district, to anticipate and guide future investment and to ensure quality development. The committee also prepared the Warehouse District Revitalization Strategy that was approved by the Dubuque City Council on August 6, 2007. The first goal of that strategy was to develop a Master Plan for the Warehouse District. Funding for the Plan came mostly from a grant from the Economic Development Administration (EDA) as well from the four major property owners, local businesses, and Dubuque Initiatives. Through a competitive bidding process, the Cuningham Group demonstrated to the selection committee that they had the most capability and creativity to help the community create a Master Plan for the District. A contract with the Cuningham Group and ERA was approved on June 2, 2008 by the City Council. The Cuningham Group work began with a two day (June 25-27) visit to the community where several focus groups were conducted to quickly learn about the Historic Millwork District and to get community input. The consultants met with the business community, city staff, the City Council, property owners, the Envision 2010 committee, Dubuque Main Street, a general public meeting inviting the entire community and other stakeholders for their input. Cuningham then gave a presentation to the steering committee to outline what they had learned from the visit and gave a rough design of what they considered to be the next steps to developing the plan. City staff then provided direction over the next few months to prepare for the second input trip held October 7-8, 2008. The same focus groups met again with the consultants to be exposed to the work to date and a preliminary development summary for the district. A draft of the Master Plan was delivered to City Staff and the Steering committee for their review at the end of December 2008. The committee met and gave their comments on the plan to the consultants and those comments have been incorporated into the plan. The City Council held a worksession on February 2, 2009, to discuss the plan. Andrew Dresdner of the Cuningham Group, and Chris Brewer of ERA gave a presentation of the key components of the plan. Comments were received and changes were made to the document reflecting those comments. DISCUSSION The deliverables attached to this memo are 1) the Historic Millwork Master Plan; 2) Demographic and Market context; and 3) Financial Analysis Summary. The Master Plan is broken down into 4 sections, District Identity, Project Goals, Sustainable Systems, and the Development Summary. The District Identity section outlines the history and potential of the Historic Millworking District. It defines the rich history of millworking in Dubuque, the architectural character of the buildings in the district, the connections to other areas of the community, and the cultural amenities in the area. The Project Goals section outlines that the success of the district depends on several goals being met. The following are those goals stated in the Plan: • Showcase the area as a model for sustainability • Balance the circulation system • Create a connected public realm • Reinforce the historical and cultural identity • Establish a coordinated parking strategy • Create a range of employment and housing opportunities The Sustainable Systems section describes the sustainable measures being envisioned for the district. The district is an opportunity to achieve a quality redevelopment and this plan outlines the areas of consideration for sustainable improvements. The sustainable measures are broken into 5 categories: • Water • Energy • The Built Environment Redevelop the Washington neighborhood edge to create a positive transition to the Millwork District. Redesign 11t" Street as a green street, with two way traffic and ample landscaping. Realign Elm and Pine Street to create a developable block on the east edge of the District. Develop this block with amulti-story gateway building. The Demographic and Market Context prepared by ERA outlines the Dubuque are demographics and the potential for urban space in the community. The study found that supply of downtown urban housing is not being met in the community and that there is initial demand for 250-500 new units. According to the consultant, commercial and retail uses tend to follow residential and should enough critical mass of housing be created, new support businesses will begin to locate in the district. The Financial Analysis Summary outlines in detail the first phase of the Historic Millwork District plan. It determined the costs and potential funding shortfalls of the redevelopment schedule. The entire first phase is estimated to cost $52,200,000 and that cost is expected to be filled with many layers of private, federal, state and local sources. Of key importance to the financial feasibility is finding non-private sources to fill financing gaps equal to the benefit of federal and state historic tax credits. These credits are needed to allow the developers to achieve a reasonable financial return to compensate them for their assumed risk. ACTION STEP I am requesting that the City Council adopt the attached Master Plan for the Historic Millworking District. This redevelopment project will be transformational for the downtown and the community. F:\USERSWdejong\Warehouse District\Master Plan\20090211 Master Plan approval memo.doc RESOLUTION NO. 75-09 RESOLUTION ADOPTING THE HISTORIC MILLWORK DISTRICT MASTER PLAN. Whereas, the City Council has requested a Master Plan be developed in accordance with the Warehouse District Revitalization Strategy adopted by Resolution 425-07 on August 6, 2007; and Whereas, a consultant was hired to assist city staff to prepare a Master Plan for the Historic Millwork District; and Whereas, several public meetings were held to provide input on the plan, a steering committee composed of stakeholders have consulted on the plan, and Several city staff have provided input to the plan; and Whereas, the revitalization of the Historic Millwork District will create new housing, commercial, and retail development opportunities to enhance the economic development in the downtown; and Whereas, the District will be revitalized with an emphasis on sustainability through water resource management, sustainable energy alternatives, historic preservation of the built environment, reintroduction of greenspace, and a focus of promoting arts & culture within the area. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the Historic Millwork District Master Plan prepared by the Cuningham Group and Economics Research Associates is hereby approved. Passed, approved and adopted this 16th day of February, 2009. Roy D. Buol, Mayor Attest: Jeanne F. Schneider, City Clerk Historic Millwork District Master Plan Dubuque, Iowa Adopted by Dubuque City Council on Prepared for: _ __ The City of Dubuque ,!~* *~ * - .;, < j `~ Prepared by: ,r ~~~ '}~~ Cuningham Group Architecture, P.A. ~ *-' Economics Research Associates _* Jeffrey Morton Architecture project#OS-87-04698 Acknowledgements Acknowledgements Steering Committee Mike Blouin Jay Borrell Paul Butler Laura Carstens Jill Connors Brian Dalziel Aaron DeJong Rick Dickinson Teri Goodmann John Gronen Dave Heiar Bob Johnson Dan LoBianco Tim McNamara Tony Pfohl Joel Schmidt Michelle Schnier Jerry Schroeder Cindy Steinhauser Nancy Van Milligen City Staff Liaisons David Heiar, Economic Development Director, City of Dubuque Aaron DeJong, Asst Economic Development Director, City of Dubuque Cindy Steinhauser, Assistant City 1~Ianager, City of Dubuque Laura Carstens, Planning Services Manager City of Dubuque Consultants Cuningham Group Architecture, P.A. Economic Research Associates Jeffrey Morton Architecture CUNINGHAM G R O U P Table of Contents Table of Contents 1. Executive Summary 2. District Identity 3. Project Goals 4. Sustainable Systems 5. Development Summary 6. Phase I: Central 7. Phase 2: South 8. Phase 3: North D CUNINGHAM G F O U P Dubuque Historic Millwork District Master Plan Dubuque's Historic Millwork District is a keystone to the region's aggressive economic development strategy. With one million square feet of historic warehouse space ideal for urban mixed-use development, the District is perfectly suited to attract entrepreneurs, designers, residents, institutions, and businesses prepared to fuel Dubuque's globally competitive and sustainable economy. 'This Plan is a vision and a roadmap that positions the District for significant growth by building on and reinforcing its strengths: size, unique building stock, proximity to the Mississippi River and Downtown, and healthy and aggressive public-private partnerships committed to making the District a model sustainable community. New residents and technologies will inhabit old spaces, the arts will flourish, and green technologies will be showcased. The embodied energy of historic buildings will fuel Dubuque's 21st-Century economy and will be the foundation for the vibrant mixed-use neighborhood that offers convenient access to urban amenities and outdoor recreation opportunities. The execution of this Plan will enable the District to become the creative, innovative, and sustainable place that propels Dubuque ahead of its regional competitors, thereby assuring its health and vitality for generations to cotne. CUNINGHAM G R O U R Executive Summary -1 Identity: Past & Future "The Historic A~lillwork District is saturated with history. It imbues the area with authenticity and character while offering valuable lessons about the importance of sustainable urban design strategies. At the turn of the century, the District was the innovative and entrepreneurial center of the region and vvas the backbone of the regional economy. Dozens of companies, 2,500 employees, a district heating system, and intimate connections to Downtown and the Washington Neighborhood characterized the District. 'This Plan resurrects the forgotten strategy that connects people, planet, and profit in a mixed-use neighborhood. It offers a vision for a community reconnected with surrounding neighborhoods, reenergized with housing, retail, offices, galleries, entertainment, and employment, and re-imagined as a laboratory for sustainable practices and technologies. Urban Ecosystems: Infrastructure for a Model Sustainable District Systems Goals Integrated Strategies & Placemaking Impru~c water quality, reduce reliance on water supply and wastewater ~ Design Guidelines s stem many e stormwater locall . Economic Analysis l; Y g Y Green Streets Stormwater Parks Minimize carbon footprint, create _ Greywater Ti ~ v~~r++~~,+t fl and use locally available resources. Rainwater Harvesting District Energy ~l Use embodied energy of historic Renewable Energy warehouse buildings reserve __-_._~ Adaptive Reuse ~ ~ p Historic Preservation ~{ historical significance. Community Gardens Native Plantings Provide habitat, create pervious ~ Water Features surfaces, define places for recreation. Central Gathering Space l Human-Scaled Spaces Arts Vcti~es Celebrate and enwu.nbc historical ~ Artistic Si~e~~~t.aN~eS and cultural identity. Educational Kiosks ~ ~ . ~ i s ~ 1, ~., ~.E'!~ ~ '"°~ :s.tu.. ,.'. ~ 1 ,`~ -, ~ k•, t G *~~ ~ t;;t l I I s t High Economic Value -Low Environmental Impact economic productivity environmental R impact 1850 1900 1950 the past ;the future •~ reased economic productivity, decreased environmental impact 2050 Over time, the District will reestablish itself as a regional engine of growth, with a greater awareness of its environmental impact than was the case 100 years ago. Individual properties and the public realm will function as an urban ecosystem, and the District will be a unit with high economic value and love environmental impact. Specifically, the District will strive to stay within its rainfall budget, approach carbon balance, create sustainable jobs and housing, and reinforce the importance of connectivity within the city. Executive Summary -2 Strengths Existingbu$dings: the greenest buildings are those already built; the District has over one million square feet of available space. Access to Downtown and the Port of Dubuque: the District iswell-located between the area's two most vibrant places. Active arts community: Dubuque's strong creative class is poised to transform the District into the City's "third space": a place for gathering, interconnectivity, and inspiration. Plan Features • Sense of place: the elnbodied energy of older buildings offers residents and businesses an authentic environment unique in the region. • Untapped Downtown residential market: Downtown's employment base and amenities create a strong market for Downtown area housing. • Healthy public-private partnerships: much of the District is owned by four developers willing to work with the City to create a consensus vision for the area. North • 182 residential units Central • 396 residential units • 135,000sfoffice(405jobs) A) Green streets: Rebuild District streets with high-quality streets..upes, modern utilities, on-street parking, artistic elements, and stormwater management features. B) New development blocks: Realign Elm and Pine Streets to create three new blocks for development, open space, and stormwater management. C) Im~~u~t=d connecti.,~..~ ~~r.reen the District, the Port, and Downtown: Create pedestrian-friendly conditions along 10th and 7th Streets, the streets connecting Downtown, the District, and the riverfront. D) Rapruyram to two-way or calm one-way streets: Work with IDOT to examine how Central, White, 9th, and 11th St.~~~~ can lrew~ne calmer urban streets. ~~~- ~~ ~:. T ~` ~' :i .+ r E) A signature public .,.~~_ I space: Build amulti-use, flexible plaza and parkin the heart of the District to use for performances, concerts, markets, and to showcase sustainable practices, technologies, and artistic elements. F) A w~+w.ih~lated parking strategy: Maxtnltze on-street parking and build rivo medium-scaled garages when required. G) A mix of uses: Accommodate rental and ownership housing, small and large Businesses, and arts and entertainment venues in the over one million square feet already available in the District. Throughout: Showcase the visual and performing arts, implement sustainable technologies and management solutions. Executive Summary -3 South • 154 residential units • 216,600sfoffice(648jobs) 10th Street 7 0th Street: Renovated warehouse buildings will animate and define a key pedestrian connection to Downtown. Tenth Street will be a unique urban space, with reused bricks, portals to courtyards, and adapted loading docks. Jackson Street: Partial reconstruction will include upgrades to utilities and conditions but will enable Jackson Street to retain its inherent character. Existing rail tracks, brick pavers, and other unique features will retrain in place where appropriate. Green Streets: New and reconstnicted streets will irrigate landscape by collecting stormwater. On-street convenience parking, well-marked crosswalks, and ample space for amenities such as public art, seating, and lighting will contribute to the pedestrian and environmentally friendly streetscape. Foundry Square: The Alamo Building and new plaza is a lively, year-round focal point and gathering space in the heart of the District. Landform Park: stormwater management, recreation, artistic features, and geothermal opportunities are some of the feattres Landform Park will offer. Kirby/Parley Plaza: The plaza pair will define a Ivey address for new commercial and office tenants and will be a significant public space along the 7th Street connection between Downtown, the District, and the Port. Dubuque Warehouse District Project Group Steering Committee City of Dubuque Staff Liaisons 1\-Iike Blouin David Heiar Ja}' Borrell Bob Johnson Paul Butler Dan LoBianco Laura Carstens Tim McNamara Jill Connors Tony Pfohl Brian Dalziel Joel Schmidt Aaron DeJong Ricl<Dickinson Michelle Schnier Jerr}' Schroeder Teri Goodmann Cindy Steinhauser John Groner Nancy Van Nlilligen David Heiar, Economic Development Director Aaron DeJong, Asst Economic Development Director Cindy Steinhauser, Assistant City 1\~Ianager Laura Carstens, Planning Services Manager Consultants Cuningham Group Architecture, P.A. Economic Research Associates Jeffrey D'Iorton Architecture Foundry Square Next Steps • Work with property owners to assemble a Phase One Historic Tax Credit Application for approximately 200 rental units and 100,000 square feet of non- commercial space. • Develop a detailed streetscape plan and plaza design. • Pursue full funding for public infrastructure. • Work with regional and national partners to develop a comprehensive District Energy Plan. • Build a small parking deck adjacent to the Alamo Building. • Work with IDOT to begin the process of rerouting Elm Street. Executive Summary -4 Places: Streets & Spaces 2. District Identity DRAFT 01 /28/09 2. District Identity Physical Environment Regional Scale Dubuque is located on the Iowa side of the Mississippi River, across from the Illinois and Wisconsin border and almost halfway between Cedar Rapids, Io4va, and Madison, Wisconsin. "Ihe Great River Road Scenic Byway links Dubuque with other river towns and tourist destinations to the north and south. Since the closest Interstates pass through Quad Cities Madison and Cedar Rapids, the U.S. Highway system is the primary transportation link between Dubuque and other destinations. Consequently, Dubuque's downtown accommodates four U.S. highways, including three that pass through and adjacent to the District study area. ~~ ,~+ USH 1380 / ~Q Ws ~• 1 a `~- 1 VSH 20 Quad Cities ~~ Local Scale Highways and Arterials Although the highways bring many travelers to and through Dubuque instead of around it, several highway- related conditions create barriers within and adjacent to the District site: • Fast, heavy traffic. • Large amount of truck traffic. • Wide streets. • One-way streets. • Elevated highway bridge. the highways are an important connection between Dubuque and the larger region, but their local impacts are severe. 'Ihe District is unfriendly to pedestrians, connections between the District, Downtown, the Port of Dubuque, and the Washington Neighborhood are challenging and few, and the District functions not as a destination but as somewhere to pass through en route to other places. these conditions were acceptable when the District's primary function was industrial. Now, however, the area is in transition and must accommodate a mix of uses, people, and modes of transportation. Regional Setting: Dubuque is located approximately halfiva Highways & Arterials: Wide, one-way streets between Madison, Wisconsin, and Cedar Rapids, Iowa (top encourage fast truck traffic (top). the elevated Four major U.S. Highway routes pass through Dubuque (bottom). highway stn~cture creates a barrier (bottom). € __ I (t ~ [. 'i ~(0~.j CUNINGHAM 1 G Fl O U P ~^ ~~ 2. District Identity Physical Environment (continued) Local Scale (continued) Local Streets The downtown street pattern is a connected grid in most places. Interruptions occur with the presence of natural features, such as bluffs and water, and physical elements, such as large buildings and highway structures. Only four of eight east-west streets pass through the District uninterrupted, and just one-9th Street-extends from the water over the bluffs. Not one of the five north- south streets passes completely through the District. connections with surrounding neighborhoods and Downtown. Over time, accommodations for increased truck traffic, highway strictures, and highway routes resulted in an eroded grid system--physically and programmatically--in the District. Private streets, dead-end streets, one-way streets, and the elevated highway structure contribute to the loss of connectivity and introduce challenges to transit, walking and wayfinding in the District. Narrow, buckling sidewalks also challenge pedestrians in the area. The District's local street pattern, types, characteristics, and conditions are byproducts of the highway system and the area's history as an industrial hub. The street pattern to the north and east of the District is a relatively complete grid that once provided numerous Despite these challenges, much of the District's valued character comes through in its streets. Unused railroad tracks and brick pavement are features unique to the District that help define it as a meaningful place with a strong historical component. Street Patterns: Most of the streets north and west of the District are part of a connected grid system (left). the grid has eroded within the District (right), leaving behind a system of one-wa}~ streets (shown in heavy black), private streets (shown in black dots), and dead- end streets. i ,~II~ +' 4~ '~:_ ~: ~,` _ - _ r =` 9 ;~ I r^- sj.. I ~_ _. ;+ i Strut Characteristics: Unused raihaad tracks and brick pavement define the District's character (top). Some sidewalks are difficult to access; some are nearly 18 inches higher than the streets (bottom). CUNINGHAM G F O U P 2. District Identity Physical Environment (continued) Local Scale (continued) Buildings and Uses Within the District, buildings occupy whole or half blocks. They are tightly arranged, with only small amounts of space for a few parking lots, streets, alleys, courtyards, and passages. A few buildings are small and some are new, but the main building types are large, historical warehouse structures. Though some buildngs are vacant, especially on upper floors, many are occupied by office, commercial, or industrial uses. Most have not been renovated. ~-: il.. ~ _;;"7_: ~1~~,. .~~',r ~~~ Buildings: Most buildings are large, historical warehouse strictures (left), with the exception of a few newer (right) or smaller structures sprinkled throughout. Some are in use while others are vacant. The Wilmac Building offers the only improved spaces in the District. It has been a place of office employment for many years and continues being renovated for additional tenants, including an art studio space. JELD-WEN is a fully operational industrial company that has been part of the District for many years, and is situated on three blocks in the south area of the District. Spahr and Rose is another large industrial company operating in the District. Like JELD-WEN, it is a long term tenant. Spahr and Rose is located in the District's north area. I E _~ i CUNINGHAM G R O U P Land lls~: The District is com rised primarily of industrial and office uses. JELD-EVEN (left occupies nearly three blocks, and some smaller commercial businesses (right) occupy part of a single building. 2. District Identity Physical Environment ~~~ '^-"' ~~~~ , ~ \ ~ "d =~I V ~ ' / .. I _~ ' A '`~ ~~ fj~ ~ ~ 1 ,~ '' r ~ E -.: p~~ ~' h I P+ ~ , _~ r- ,, ,.~<~ ~~ ~~ . ,r ;. ~,. ~ ~. /'~ ~.~ `` ~ ~, CUNINGHAM [+ R (1 U P 2. District Identity Natural Environment Regional Scale The Mississippi River and the blufflands are Dubuque's most prominent natural features. Each reinforces the sense of place that distinguishes Dubuque and each has contributed to the area's visual, recreational, commercial, and community appeal throughout the years. The Mississippi River is valued not only for its scenic beauty, richness of habitat, and recreational opportunities, but also for its role in the region's commercial and industrial success. The riverfront is home to both cultural and industrial activity, and serves as part of a major migratory fl}tivay. Dubuque's bluffs give added topographical definition and identity to the city. They rise 300 feet in less than a mile, with some reaching 900 feet above sea level. These bluffs, along with deep valleys, characterize the Driftless Region, an area untouched by glaciers in the last glacial period that encompasses over 16,000 square miles in Iowa, Illinois, Wisconsin, and Minnesota. The scenic region is unique in Iowa, and attracts tourists interested in hiking, biking, fishing, and other recreational activities. The District is situated between and near the river and the bluffs; therefore, what happens in the District should complement these natural features and should protnote responsible stewardship of each. A balance between industry, urban living, biological resources, and public land in the District can contribute to making a healthy ecosystem that promotes the longevity and sustainability of valuable natural and cultural features. i :~, . „K ~' CUNINGHAM G R O V P The Driftless Area: Over 16,000 square miles in Iowa, Illurois, Wisconsin, and Minnesota comprise the Driftless Area, a region characterized by steep bluffs and deep valle}~s. The Mississippi River. The Dubuque riverfront is active and diverse, with a collection of cultural, ecological, industrial, and recreational functions. 2. District Identity Natural Environment (continued) Local Scale Parks and Open Space Many kinds of open spaces, such as bluftiands, parks, streetscapes, and promenades, exist around the District. Despite the proximity of these spaces to the District, none are connected to it and only a few small spaces exist within it. Currently, short passages, small courtyards, and undefined fields of grass or parking comprise the District's open space system. As the focus of the District changes from primarily industrial to a balance between industrial, office, commerical, and residential, priority should be placed on creating new green spaces, improving existing spaces, and making connections between existing spaces within and outside the District. Streetscapes Streets are the most continuous network of public spaces in the city. Main and Iowa Streets are two local examples of different streetscape treatments. Main Street is designed with wide side~vallcs, street trees, outdoor seating, and a comprehensive signage treatment that make the outdoors comfortable. Iowa Street is a tree-lined boulevard. 'Ihe District is the right place for a street aesthetic and experience all its own, but its streetscape should be conceived of in a manner as deliberate as that of Main and Iowa Streets. is ~`~ t R f; ii+:r - .. t. Open Space: This passage and small courri'ard can inform the development of a complete and connected open space s}'stem. ~; d r I jf~-~' j CUNINGHAM G R O U P Par4s k~ Open SpacE: Many Large parks and open spaces exist around the District, but none exist ~a.ithin it. Streetscapes: \Vide sidewalks, street trees, and outdoor seating contribute to the D4ain Street experience and aesthetic. 2. District Identity Cultural Environment History Cultural Heritage The District is a living legacy of intangible attributes worthy of preservation for future generations. Visual narratives of people, activities, and important processes are very much alive in the area and are inherent in its uniqueness of character and historical value. Natural Heritage The natural environment, including the Mississippi River and blufHands, also contributes important natural and cultural value from the past and to the future. The river's role in commerce, settlement, and development history, as well as the beauty and biodiversity inherent in the blufiiands, river environment, and other natural places, are strong and guiding forces in the District. Physical Heritage The District's physical artifacts, or buildings, monuments, and industrial equipment, also are assets to preserve. These tangible layers of history, including today's, are part of the continued evolution the District will continue to experience in the future. Most of the District is a National Register Historic District. This designation helps honor the District's past while welcoming its future as part of a dynamic and evolving city. As an Historic District, buildings are eligible for state and federal historic tax credits. Physical Heritage: Historically significant buildings like those of the Farle}}~ & Loetscher companies (above), comprrsc the Federal Historic llistrict (right). Contributing structures are shown in yellow. p~s,, '~ , Ir ~ •, • O ~`,' ~ ~ ~~~ ~ ~~ ,••,@~e r ~ ~„~ a ~'' ~' `\ ,, ., ~ ~ , • , ~, , ~ •-, , ~ , ~ , ~ i 1, , r i ~ ~ Y ,.~ jr ~. ii;ej CUNINGHAM G F O U P Natural Heritage:'Ihe Mississippi River (above) is one of several naturally and culturally significant environmental features in Dubuque. It was and continues to be a strong guiding farce for the District. 2. District Identity Cultural Environment (continued) Character The Arts Dubuque is home to a growing arts scene, and the District is host to many arts events as well as creative companies, entrepreneurs, artists, and a new arts studio space. 'There is evidence throughout the District of the innovative spirit espoused by the arts. "This is instrumental in reinforcing the District's character and should be encouraged to flourish. Industry The District's roots are in industry. Long before JELD- WEN and Spahn and Rose, the millwork tradition was strong. Companies like Caradco and Farley and Loetscher defined the character and impression of the place with their large buildings, overhead skywalks, and employees that walked to and from home in the nearby Washington Neighborhood. ~~{ f i a---'' ~ 'S ~ A ( l;{ i -~ 1 ~ ~,i~ 4 ~ -% t. ~~ ~~" ' ~ 1 ._ s _ -_. ,t ~~ ~ t ..' ~ , "I The Arts: F,vidence of the creative community appears throughout the District. People Planning Process Many committed people were involved in the District planning process. The 22-member project steering committee, along with city council members, city staff, neighborhood representatives, artists, and the general public provided information, shared ideas, and gave feedback throughout the process. In all, the consultant team met with about 120 people over a 9-month period. Partnerships Strong partnerships between the public and private sectors are the cornerstone of the District project. Each group needs the other in order to plan for and implement the tnost comprehensive and appropriate plan, and the sterling partnerships already in place are essential to continue to build and reinforce as the District's plan comes to life. i j ;; I CUNINGHAM G A O V P Planning Process: Use of visuals with multiple focus groups and public input meetings characterized the inclusive planning process. 3. Project Goals 3. Project Goals Connections The District's central location betvveen two premier Dubuque destinations, Downtown and the Port, is ideal. However, despite its proximity, the District is not well connected to these destination areas. Busy roads, the elevated highway structure, and railroad tracks create significant barriers between the District and its surroundings. As the District develops, better connections with Downtown, the Port, and the Washington Neighborhood should be priorities. The District will then be an entertainment destination in itself, and will CUNINGHAM G R O U P Making Connections: "Ihe District is strategically located between Downtown Dubuque and the Port of Dubuque (left). It is important to prioritize connections bchveen the District and Downtown, the Port, and the \Vashington Neighborhood. also be a com~enient place to live and work. 3. Project Goals Project Goals & Objectives ~ ~~ ~~ ~~~C ~~aC ~~o~ -~~c ~~~ Showcase the area as a model of sustainability. • Create aDistrict-wide approach to clean energy management, water management, and use. • Adopt green building standards. • Operate as an innovative laboratory for sustainable urban environments. Reinforce historical and cultural identity. • Return 9th and 11th Streets into rivo-way streets. • Reconnect the street and sidewalk network where feasible. • Minimize impacts of truck traffic not destined for the District. • Enhance elisting sidewalks. ~~1 ~~~ ~~~C ~~ ~ C ~~~ ~~C ~d ~/ Establish a coordinated parking strategy. • Widen and activate sidewalks. • Prioritize the 10th Street pedestrian environment. • Create a central gathering space. • Create a system of connected courtyards and passages. ~~ ~~~ ~~C ,~~ ~d i Create a range of employment and housing opportunities. • Preserve historical buildings. Establish street parking Support a range of job types. • Provide artist housing, studios, guidelines. Create rental and for-sale and gallery space. Create several small parking areas housing opportunities. • Include not-for-profit efforts in instead of a single large parking Encourage new development the District. area. when and where appropriate. -.{a~ CUNINGHAM G P O U P Create a connected public realm. Balance the circulation system. 4. Sustainable Systems 4. Sustainable Systems Overview This Plan recommends maximizing community, environmental, and economic benefits through cooperation between the public and private sectors. Five infrastructure systems, or layers, provide a framework for water understanding and implementing a healthy and sustainable plan that meets this criteria. , B~Ue InfYdStrUCtUre addresses water use and treatment approaches that `~ contribute to better water quality energy Ordrlge IrlfrdStrUCtUre includes efficient electrical, heating, and cooling systems that minimize the District's cairbon footprint. Gray I nfrdStrUCtUre includes buildings, parking, streets, and other development redevelopment that is essential to establishing a viable mixed-use neighborhood. GYeen InfrdStrUCtUre includes vegetation, parks, and open space that contribute to a healthy ecosystem, better air and water quality, and improved vegetation & open space public life. ~ Red InfrdStruCtUre includes arts and cultural spaces, amenities, and / /~ expressions that reinforce the identify of an area. / // ar[sF~ The following section introduces each infrastructure system in detail, and /v/ ~~ICUrn makes recommendations for implementation at both the District scale and building scale. Infrastructure Layers for a Sustainable Millwork District Environmental and Ecological ~i'vnble Social and Integrity Cultural Vibrancy Viable x Equitable Economic Prosperity The triple bottom line of stistainability .'._~%~, ~ CUNINGHAM I G P O U P 4. Sustainable Systems Blue Infrastructure: Water Introduction Blue Infrastructure consist of rain and stormwater, wastewater and domestic water. "This section focuses on the District's relationship to water: the use, treatment and management of this limited and valuable resource. Water is a valuable resource for all communities, but is of special importance to Dubuque because of its proximity to the river and its impact on downstream communities. Runoff and groundwater enter the river immediately, thereby impacting downstream communities, habitat, and vegetation. Instead of assuming water consumption and runoff inevitably increase as the District redevelops and repopulates, the Plan establishes aggressive strategies to capttuc, clean and conserve water. The overall goals of the Blue System are: • Reduce reliance on City's domestic water supply. • Improve the water quality of infiltration and recharge. • Reduce reliance on City's stormwater system. Upon build-out, the District will have significantly reduced its reliance on the City's distribution and waste water system by using potable water primarily for potable purposes and by treating some waste on site. Other non-potable water needs will come primarily from the District-wide gray water system and direct rainfall. In addition, upon build-out, the District will no longer shed its untreated rainfall and stormwater off-site to the river. Rather, stormwater will be managed and treated on-site prior to either entering the City's water system or recharging the groundwater. Community Benefits • Increased awareness and stewardship of water resources. • Celebration of heritage as a river community Cleaner groundwater. • Cleaner river water. • Less reliance of off site stormwater facilities. • Less reliance on domestic water supply. • Cleaner ground water. €_ `k ~1~~j ~'. CUNINGHAM {_ -. ~.._. G P O U P 4. Sustainable Systems Blue Infrastructure (continued) Existing Conditions Generally, the land slopes from west to east toward the Mississippi River. stormwater in the District is managed by underground pipes that serve much of Downtown.Three trunk lines, beneath 11th, Sth, and 5tli Streets, collect stormwater water from Downtown and send it directly to the Ice Hazbor, Dove Harbor, and the 16th Street Detention Basin. The majority of the rainfall in the District (and Downtown) enters one of these three tnmk lines and enters the river untreated. Not all streets are correctly graded; together with direct flow from rooftops rainfalls often produce loatlized flooding and ponding. ~ I~`~' `` Bee Branch` '~ D~ ~ i 1 v !` Yc 4 :~~? ~ 'l F i A . t ~ P. •. ;~ ~, 16th St Basin Recommendations In order to reduce reliance on the City's systems and to not allow water to leave the site in worse condition than when it falls on the site, Plan recommends a street system designed to capture, use, and treat rainfall and stormwater runoff; a wastewater system that uses bioremediation to com'ert (some) black water to gray water, rainwater capture and harvesting elements that supply a gray water circulation system for all new and existing buildings. At the block and building scale the Plan recommends additional rainwater harvesting (cisterns) for irrigation, retrofitting buildings for gray water, and additional landscaping (green roofs, bioswales, parks, etc.). 29 inches/year= 30 million gallons r capture and use infiltrate and recnarye c direct irrigation A rn today 2058 time Rainfall: Over time, the District will use on-site rainfitll more aggresively and efficiently. rainfall , v y ~Y .I v y ~1~-~++ ~ ~ • ~ r~r.~C3Yf • ' L..+_u+Y rainfall ~ ~ blackwater :~Q, ! ~r~ ~ treatment v v ~ ~ ~ green Y -s~ w ~,A I ~ ~i rr~. , - sheetllo~y _ ~ }l.l{7,11`}' (TJr~,~}~~/ WL--•_ '~~- ~~ -infiltrati~dan~gr~un•~iw~te~reche ge .. 2wetla~ ! d( featur and ,1 ~ ~ ( treatment ~ 'I`:_ chain I rain Ovate llstorage Proposed 61ue Infrastructure: "Ilte plan proposes a gray white black water s}stem that reduces the amount of imported potable water In addition, the Plan proposes a system that treats all rainfall on site, assuring that water that exits the site is clean. DRAFT 02/10/09 CUNINGHAM G P O U P District Storrrr:vater: Two trunk lines (9th and 5th Sts) convey stornnvater from Downtown and the District to the river. A'Iost water is untreated as it enters the river. 4.Sustainable Systems Blue Infrastructure (continued) Recommendations: District Scale Create a system of streets that eliminate the need for underground stormwater conveyance. • Rebuild 9th and 11th Streets with linear stormwater biofiltration planters along one side of the street. • Rebuild 5th 6th, 7th, 8th, 12th Streets, and parts of Washington and Elm Streets, with curb extensions to capture stormwater. • Rebuild 10th Street with permeable pavers and im~erted curbs to sheet flow rainfall to the stormwater feature on the east edge of the District. • Establish a common palette of salt tolerant and native plants for use in the stormwater planters and curb extensions. Create a large stormwater collection area that improves the quality of infiltration within the District and manages large storm events. • Work with IDOT to reclaim property on the east edge of the District. Design this land as a stormwater collection area that also functions as a landform and art park feature. • Consider using stormwater collection area for overflow from the 8th or 11th street trunk lines. • Promote stewardship and environmental responsibility by encouraging educational programs and signs or kiosks related to stormwater management and treatment. Develop a rainwater harvesting and gray water system. • Design the District's infrastructure in support of a separated white/gray/ black water svstem. • Retrofit all buildings with triple piping for potable water, waste water and gray water. • Use space beneath Foundry Square for larger cisterns and rainwater collection chambers. Develop a gray water treatment facility (expandable to blackwater) to convert waste water to usable gray water. Evaluate costs and seek partners to develop a Living Machine or other black water treatment facility on site within the District. Promote education and natural resource awareness by encouraging educational programs related to the Living Machine Use space within Foundry Square or the stormwater collection area on the east edge of the District for the Living Machine. I f~~j ! CUNINGHAM ....__ _. _~ G R O U P Green streets: linear planters Permeable pavers Gray and blackwater treatment: Living Machine Plaza Street with permeable pavers 4. Sustainable Systems Blue Infrastructure (continued) Recommendations: Building Scale Encourage green roofs as a means of capturing and using a portion of a site's rainfall without having to convey it to a centralized location. • Develop green roofs on the largest and most structurally stable warehouse buildings. Green roofs can be occupied as social spaces such as gardens, terraces and greenhouses, or they can serve ecological functions only as places for vegetation and habitat. • Integrate green roofs with the overall District-wide blue infrastructure system. Encourage building owners and operators to invest in products, systems, and programs that help the users of the buildings conserve water, raise awareness and implement the goals of this Plan. • Work with public utilities to install "smart meters" for in all units and buildings. • Rehab buildings with appropriate white/gray/black water plumbing lines and fixtures. • Invest in low flow and water efficient fixtures and appliances such as EnergyStar. • Install cisterns and rain barrels for local irrigation and watering. Celebrate water and the community's connection to the river in public spaces. • Create recreational connections to the river • Enhance public spaces with interactive fountains Green roof ,~'-~°i 1, CUNINGHAAt _. G R O U P Rainwater harvesting Interactive fountains Drinking fountain 4. Sustainable Systems Orange Infrastructure: Energy Introduction Orange Infrastructure includes the electrical, heating, and cooling infrastructure for the District -the primary carbon emitters. This Plan establishes an aggressive vision of an economically vibrant District with a low carbon footprint. Although redevelopment will bring an increase in residents, employees, and therefore more energy use, it does not require a corresponding increase in carbon emissions. Utilizing the embodied energy of the buildings and the District itself, together with a series of on-site and off-site energy efficiency strategies the carbon output can be minimized (and perhaps neutralized). The Plan establishes two main energy goals: • Reduce per capita energy consumption among residents and employees within the District. • Reduce reliance on non-renewable sources of power, and emphasize reliance on clean and renewable sources of power. • Be a model for smart energy and promotion of new technologies. Community Benefits • Increased awareness and steUVardship of environment. • Reduced energy costs. • Reduced energy needs. • Reduced reliance on fossil fuels. • stable energy sources and prices. • Cleaner air from reduced - i ?x~~ ' ~ CUNINGHAM G R O U P 4. Sustainable Systems Orange Infrastructure (continued) Existing Conditions Because many buildings in the District are vacant, carbon emissions are low. The District is responsible for carbon outputs from two major activities: • Consumption of electricity that is produced by burning fossil fuels off site. • The burning of natural gas within the District for heating and cooling, etc. When the District was operating at its peak, heating was provided via a series of tunnels and an on-site district heating plant. This system provided efficient (but not clean) heating to the district. Recommendations As the District redevelops and becomes occupied by new residents and new employees, demands for electricity and heating and cooling will increase. The challenge is not to curtail development to minimize energy use but to leverage the growth and development to create an efficient and clean system that enables residents and employees to lower their per capita carbon outputs. The Plan focuses on two main strategies: Designing efficient buildings and systems that require less load. Using renewable and clean energy to satisfy as many of the energy needs as possible. 2000 jobs 1000 residents A 2ooiob5 ~0 residents n 5 r 5oi~r m wmd 3 c ~~ _-- __ - ~- hydro : Y renewable nlNir~l?rce non renewable today toss time The District's proximity to the river and adjacency to a local utility plant Energy Use: Over time, the District offers an opportunity to create glow-carbon district-wide heating and will increase its need and use for energy. However oaer time the District will cooling system. The embodied energy of existing buildings can leveraged by transition to clearner and more renewable be improving their energy performance with efficient materials and systems, sources. ~r r ~~ -,r ~ ~~ -, r -~ i ' ~• '~ ~ ;~ District chiller Was ; ~g -= 1 Nei ~o :> ood co-generation loo _ with Alliant _ `~ ~" / ~ otential geothermal Poop and field J~ Oian~e Infrastructui:~: Currentl}~, individual buildings have individual boilers, each burning natural gas to heat and circulate water through buildings. A District energy solution using either geothermal or co-generated heat from the nearby utility plant can be more efficient and cleaner CUNINGHAM G a O U P 4. Sustainable Systems Orange Infrastructure (continued) Recommendations: District Scale Create an efficient and clean District-wide heating and cooling system. Work with local and regional utilities to explore the possibility of capturing and distributing heat generated at the power plant and converted to either natural gas or biomass on the river. Work with local and regional utilities to evaluate the possibilities of geothermal on a District-wide or building by building basis. Consider expansion of the system to adjacent areas such as the Washington Neighborhood. Supplement the District-wide system with clean on-site power generation. • Install photovoltaics on rooftops, parking garages and plazas. • Capture bio-gas (via anaerobic digestion) from possible on site Living Machine for electricity production and/or building heating needs. • Consider installation of fuel cells, micro turbines, and other possible small scale means of capturing and conveying clean and renewable energy. Highlight, promote, and make visible the production and conveyance of energy in the District. Consider designing an above ground utility system that reflects the industrial past and creative future of the District. Promote education and awareness by encouraging educational programs related to the production and distribution of energy, power, heat and electricity. Pursue partnerships to assist in the capital costs and implementation of energy programs. • Consider long term energy service contracts with utility companies. • Consider performance partnerships whereby the cost of energy efficiency improvements are financed by a third party and repaid from the energy savings generated. Develop a system that measures and monitors energy use and greenhouse gas emissions for the entire District. • Work with local, regional and national partners to establish measurements and targets for per capita carbon emissions. • Monitor, evaluate, and adjust energy use and greenhouse gas emissions as the District is built out. y~ t...,. ~~ e a o u a Solar canopy Artistic, energy-efficient lights Photovoltaic 4. Sustainable Systems Orange Infrastructure (Continued) Recommendations: Building Scale Retrofit buildings with energy efficiency improvements. • Perform pre-construction audits on all buildings prior to redevelopment; follow up with periodic review audits. • Provide incentives to developers to develop buildings that create light and balanced heating/cooling loads; and efficient and dependable heating/ cooling systems. • Establish educational and training procedures for building operators and tenants in order to maximize the value of energy efficiency investments. • Work with public utilities to install "smart meters" in all units and buildings. • Invest energy efficient fixtures and appliances. ~'~P; CUNINGHAM tt G Fl O U P Exposed infrastructure 4. Sustainable systems Gray Infrastructure: Development Introduction Gray Infrastructure consists of buildings, parking streets and other redevelopment efforts. The design, location, and balance of these elements is critical to the success of the District; it will be the mix of uses and spaces in the District that will attract people and investment, therefore making it a creative environment unique in the region. Redevelopment of over one million square feet of buildings will have regional and national implications. Reusing buildings and reinvesting in existing streets is aii efficient use of existing resources as it leverages the embodied (and cultural) energy of the District. Redevelopment of the District represents the reuse of a historic quarter of Downtown. The goals, therefore, of Gray Infrastructure are to: • Bring economic vitality to the region at minimal environmental cost. • Establish a unique District that enhances Dubuque's regional competitiveness. • Connect the District to Downtown, the Port, and the region. • Reinvest in Downtown Dubuque. • Utilize the City's Downtown Design Guidelines. Community Benefits • Economic vitality and increased tax revenues. • New housing choices. • Options to live within walking distance of Downtown. Reinvestment in community's history f 't'll ~. CUNINGHAM ~. ~. G R O U P • Restored historic buildings. 4. Sustainable Systems Gray Infrastructure System (continued) Existing Conditions In 2008, the District was named a National Historic District, making qualified projects eligible for federal and state historic tax credits. The District consists of approximately 28 buildings, totaling approximately one million square feet. Most buildings are vacant; however, JELD-WEN (not in the Historic District) and a few other companies are fully operational. The warehouse buildings have large open floor plates and generous floor-to- ceiling dimensions, making them adaptable to many uses. The large floor plates cover much of the District. While their large size is au asset, it also presents a challenge in that little space remains for parking. Full build-out of the District requires nearly 1000 parking spaces. A second challenge involves organizing land uses so that early phase projects are clustered to create a significant impact. A third challenge is to connect the District to surrounding assets such as Downtown, the Port and the Washington Neighborhood. The District will succeed only if it functions as apart of the greater whole. Recommendations The Plan recommends a land use, redevelopment, and phasing strategy for both redevelopment and infrastructure. The strategies connect the District with its surroundings, break down the implementation into realistic phases, coordinate development with infrastructure, and set up the District for a new generation of sustainable buildings. The Plan also recommends utilizing the Downtown Design Guidelines to stimulate the restoration and rehabilitation of structures and all other elements contributing to the character and fabric of the District. These guidelines seek to manage change so that the traditional character of the area is respected while accommodating compatible improvements. They reflect the City's goals to promote economic development, enhance the image of the area, and reuse historic resources. In addition, the guidelines draw upon urban design principles ofcontext-related and pedestrian- oriented designs that address how streets are crafted as active, pedestrian- frielidlyplaces that unify and establish a sense of continuity among properties. . , ~ , ; ~ , 1 , , ~ t t ~ 'r ~~~ -~ ~ ~ . tt te ~. , ~ o I i.,~,~~.~ ~ CUNINGHAM ~ G fl O U P Existing Gray Intrastructuie: Historic warehouse buildings are adapptable because of their large open floor plates and generous floor-to-ceiling dimensions. 4. Sustainable Systems Gray Infrastructure (continued) Recommendations: City Scale Extend connections from the District to Main Street, the Port, and to the Washington Neighborhood. • Improve the pedestrian experience and the streetscape along 10th Street from the District to Main Street. • Improve the pedestrian experience and the streetscape along 5th Street from the District to Main Street. • Improve the pedestrian experience and the streetscape along 7th Street from the District to the Port. Improve regional access to the District, the Port, and Downtown. • Work with IDOT to improve regional access to the District by changing 9th and 11th to two way streets. • Work with IDOT to improve pedestrian connections between the District and Downtown by either changing Central and White to two way or otherwise calming the streets. • Work with IDOT and Alliant to develop a road connection between 9th Street/ Kerper Blvd. and 7th Streets. • Reduce the impact of through truck traffic in Downtown by either calming streets or creating more direct routes for trucks to reach destinations. • Encourage transit-oriented development and design. Multi-modal streetscape ,, t;'• z.. .aA ~.. ~~ rc ~ ~'~ ~. , .. . ~f=' .,. ~~ s ~~. ~•~! ; Street addtions and improvements i ,.:;y'v ~~~',, CUNINGHAM G fl O U P Pedestrian-friendly streetscape 4. Sustainable Systems Gray Infrastructure (continued) Recommendations: District Scale Organize land uses in response to JELD-WEN and to the land use patterns surrounding the District. • Focus residential uses on the north side of the District, between 9th Street and 12th Street. • Take advantage of the visibility and access to the Kirby and Farley and Loetscher buildings by positioning them for economic development job creation. • Within the Farley and Loetscher and Kirby buildings, locate residential uses on the sides of the buildings with river views and. Cluster retail uses around each other and adjacent to public spaces. • Create a retail node around at the intersection of 10th and Washington. • Provide additional retail, if necessary in the Kirby and Farley Loetscher buildings along 7th Street. • Reserve a highly visible commercial location on the east edge of the District along Elm Street. Use acombination of on-street parking, parking beneath buildings and moderately sized parking structures to accommodate parking demands. • Create two parking structures to support redevelopment: one adjacent to the Alamo Building and one adjacent to the Kirby Building. Parking structures should be used for residents, employees, and longer term visitors. • Create smaller, well landscaped infill parking lots adjacent to the Farley Loetscher Building and JELD-WEN. • Utilize on-street parking for short term parking needs. I `~, CUNINGHAM G P O U P Strategic organization of land uses Short-term on-street parking 4. Sustainable Systems Gray Infrastructure (continued) Recommendations: District Scale Prioritize rehabilitation of existing buildings in the District. • Use historic tax credits to rehabilitate as many contribrtting structures as possible. • Encourage creative and responsible reuse of existing buildings. • Encourage use of the City's Downtown Design Guidelines. Create opportunities for new construction, the next generation of sustainable buildings. • Gradually transition land uses the northern edge of the District from industrial to residential. New construction on the blocks between 12th and 11th should transition in scale from the Washington Neighborhood to the District. • Develop infill buildings on White Street between 9th and 11th Streets in accordance with the Downtown Design Guidelines. • Develop new commercial or mixed use buildings, in accordance with the Downtown Design Guidelines, on the new block created by realigning Elm Street. Vary the experience and function of the public realm by creating a range of street types that balance the multiple needs of the District and Downtown. • Nlalce surface and pedestrian improvements to Jackson Street, but leave the bricks and the tracks intact where appropriate. • Design 10th Street at a "shared street" or a "plaza street:" a street where vehicles move very slowly and pedestrians and street level activity is prioritized over other uses. • Design 9th and 11th Streets and 6th, 7th, Sth, and 12th Streets as green streets, with linear stormwater planters or curb extensions with stormwater planters. • Encourage transit-oriented development and design. Plaza street l ~) I CUNINGHAF.M1 ~. ~'_-' -~ G P O U P Responsible reuse of buildings Scale transition 4, Sustainable Systems Green Infrastructure: Vegetation & Open Space Introduction Green Infrastructure includes vegetation, parks, and open space. These features are essential components of a healthy cultural and ecological ecosystem, and contribute to a high quality of life for people and animals. In addition, vegetation and open spaces offset negative environmental impacts created by impervious, heat-absorbing materials like concrete and asphalt typically found in urban areas. Better air and water quality, a more hospitable environment, and improved public life are some benefits resulting from a strong urban vegetation and open space system. To accomplish this, the green system should: • Create a cohesive network of trees, plants, and public spaces. • Increase diversity of plant and public space types. The following section includes recommendations for District-wide approaches to realizing a comprehensive green infrastructure system. Ii ~`'_;' Community Benefits • Improved air and water quality, and reduced urban heat isliard Pl f ct. • setter connections and novement between places _vithin and beyond the District. • Variety of spaces to enjoy pu~Jjy life. • More comfortable streetscape environment. • Increased plant and animal diversity. • Heightened environmental awareness and stewardship. • Enhanced commitment and appreciation for the unique District environment. CUNINGHAM G R O U P 4. Sustainable Systems Green Infrastructure (continued) Existing Conditions Most vegetation and green space is located near and around the District boundaries, but very little exists within them. What is there lacks the richness necessary for healthy animal habitat, the cohesiveness ideal for movement between spaces, and the quantities necessary for improved air and water quality. Furthermore, existing green spaces are inaccessible and inhospitable to people. Recommendations These conditions are typical of industrial areas. However, as the District transitions from a place dominated by industry to a place that accommodates a mix of uses, attention to a more livable and sustainable green infrastructure should be a priority. Street reconstruction and building renovation efforts offer ideal opportutlities to introduce a healthy environment for plants, animals, and people. This Plan recommends a network of interconnected parks, trees, green roofs, and other green areas that together make one complete system. Such a network diversifies habitat options, enables better movement between and within valued places, improves air and water quality, and reaches beyond the District to the larger environment. V ~; D ~~ ~~ a~ ~~ ~•, \\ ,~ ~ ~~ \\ ~', j~ ~~ ~ `~ ~,- ~~ ~,; ~ . ~ ~~ .~ ~ _. ,~~`~ ~ ~` ~~ ' ~ . \~ , -~ ,, ,~,,.. ' ~ Pruposed District s ~ Omen Spaces: ~'r`i~'~ ; A. Plaza ' B. Park ~:' ~ C.Internal Courtyard cr' , D. Passage ~' E. External Courtyard `,~ F.Streetscape r CUNINGHAM G fl O U P .~'f f Existing Green Infrastructure: Very little vegetation and green space exists in the District, and what is there is lacks diversity necessary for rich habitat and is inaccessible and inhospitable to people. 4. Sustainable Systems Green Infrastructure (continued) Recommendations: District Scale Create parks, plazas, and courtyards to improve public life, to offer "breathing" space within the compressed urban environment, to diversify habitat options, and to provide some local food sources. • Build a large, central public gathering place around the Alamo Building. • Create a stormwater collection area that also functions as an art and landform park on the east side of the District. • Build small plazas on 5th Street at the Kirby and Farley and Loetschet- building entrances. • Open internal courtyards to people visiting and living in the District. • Encourage community gardening. Plant a variety of trees within parks and plazas to provide a hospitable environment for people and to offer habitat, shelter, and food for desirable urban wildlife. • Plant a bosque of trees in the central gathering space. • Plant both deciduous and coniferous varieties of trees where appropriate. Establish green corridors for wildlife and people to enable more comfortable movement between and within valued parks, plazas, and buildings. • Install a continuous green streetscape of street trees, planted stormwater collection zones, rain gardens, and potted plants. • Connect 7th,10th, and Washington streetscapes with the riverfront and the Port, Downtown, and the Washington Neighborhood. • Create a system ofsemi-public internal building passages for access between sidewalks and internal courtyards. 1~~~ ~. F :~ .~~; #, , ~ E ~, ~ a ~1,~'~: ~ t ~ ` .- ~;i ~~ ~,. ¢ r Y ~_-z' - ' Gathering place CUNINGHAM G fl O U P Community garden Planted stormwater streetscape Potted plants 4. Sustainable Systems Green Infrastructure (continued) Recommendations: Building Scale Establish rooftop and courtyard space to improve building climate control, create avian and insect habitat, and add outdoor gathering space. • Build green roofs and roof gardens on Busting buildings provided they are set back from primary and secondary facades. • Add plants and water features to internal courtyards. Create additional private outdoor space for building occupants to container garden and enjoy the outdoors. • Consider adding balconies on secondary building facades and in courtyards. • Consider building inset "outdoor rooms" on primary facades that carefully respect the historic integrity of the building. Encourage building occupants to create gardens that provide additional vegetation, visual interest, and food sources. • Promote the use of container gardening on balconies. • Promote the use of window boles on secondary facades. Complement public and private areas with active semi-public spaces. • Use loading docks as patios for outdoor dining. • Open passages to make connections between sidewalks and internal courtyards. 1. i €~ T 1 ~ ~l ., i t Green roof E <.w l __. Window box --'1 CUNINGNAM Courtyard water feature Loading dock seating 4. Sustainable Systems Red Infrastructure: Arts & Culture -)r ;;1-'. - ~ _. d -s. 1. ~i w.ky ': Introduction ~+ -- I , ,_. x_ ~- a: r- ~+ .r ` I Red Infrastructure includes arts and cultural spaces, amenities, and expressions that reinforce the identity of the District. Enriching stories, imaginative visuals, and an overall sense of place contribute to what makes a place meaningful, which in turn makes it memorable, special, and desirable for residents and visitors. To accomplish this, the red system should: • Accommodate and encourage creative participation by the arts community. • Establish appropriate mechanisms to strengthen the rich tapestry of historical buildings, streets, spaces, and compelling narratives of past and present communities of people. • Increase the presence, visibility, and vitality of arts and culture in the District. The following section includes recommendations for aDistrict-wide red infrastructure system that highlights the cultural significance of the District. Community Benefits • Heightened sense of identity and set~~~ of place. • Greater awareness of history, community, and cultural heritage. • More inviting streetscape environment. • Increased opportunity for expression and interaction. • Opportunities for activities and entertainment. k !. ~ G R O U P 4. Sustainable Systems Red Infrastructure (continued) Existing Conditions Many artists and creative businesses have studios and offices within the District, but their presence, for the most part, is hidden behind small signs, a few sculptures, and facades of historical warehouse buildings. The buildings themselves espouse historical significance, but many need repairs to become-or remain-suitable for the existing and next generation of occupants. Recommendations Since most of the District is a National Register Historic District, changes to buildings must comply with regulations if a developer or property owner is using federal or state historic tax credits. Renovations are planned and underway, but additional renovations that reinforce the historical significance and continued evolution of the District are necessary for its longevity When appropriate, building and streetscape renovations should include opportunities for creative expression that promotes the arts community. The Plan recommends that the work, energy, and activities of the arts community, along with the historical assets inherent in the buildings and streets, should be more visible and palpable throughout the District. .- ,~' ~~~ ~ ~I ~ i , • ' w~~- -, ,r A ~, 1 ~` • O ,~;s~ ~ ; ~ ~ ~,~~ ~, ,••,@~e ,~ ~ ~ y ` . ,,rr , ,~ I ~ , •~ 1 • ~Ar ~~ ~ . , • , ~, ~ ~ 4 National Historic District: Yellow buildings signif)~ contributing struchtres within the National Register Historic District. '; 4si. ~ CUNINGHAM _. G R O U P E~.i;iin~.~ Red Infrastructure:'Ihe arts community and historical significance of the District is neither as celebrated nor as visible as it should be. 4. Sustainable Systems Red Infrastructure (continued) Recommendations: District Scale Use street rights-of-way as places to make functional items spirited and artistic. • Attach sculptural artistic elements to light posts. • Use bright paint or mosaic materials on benches at btts stops and along sidewalks. • Paint highway columns with patterns or bright colors. • Use sculptural elements as bike racks. • Use sidewalks as canvasses for artistic expression. • Highlight historicail Jackson Street b}' maintaining its "as-is"condition where appropriate. Expand park and plaza space by temporarily closing streets for events. • Promote performing arts and parades in streets. • Support markets and festivals in and along streets. • Use streets for overflow seating during outdoor movies, concerts, and theater performances. Design plaza and park space to support the arts. • Create places for performances and concerts. • Incorporate sculpture, landfonn, and creative paving patterns. Promote the District as a place to produce and experience the arts. • Organize District-wide events to increase visibility and patronage. • Recruit artists and patrons to visit, live, and work in the area by developing artist housing, studios, and gallery space. • Develop partnerships with art and music departments at local schools and universities. ,~,~ I /. __. __ ___ _r ~, aQ@Q_(~1d~ a ~ ~ fi1._t; ~ Landforms with sculpture CUNINGHAh1 G P O U P Light post sculpture Artistic bike rack Sidewalk canvas 4. Sustainable Systems Red Infrastructure (continued) Recommendations: Building Scale Make functional elements on buildings artistic. • Install bright, interesting, and creative signs. • Use lights to enliven storefronts, courtyards, and outdoor eating areas. • Use windows as temporary arts exhibits. Combine the arts and history where appropriate. • Identify historical elements with creative lighting displays. • Actively display historical architecture of District buildings. Install and promote the arts in interior courtyards, passages, rooftops, and on secondary building facades. • Allow sculptural elements in roof gardens. • Paint murals on courtyard and passage walls. • Create space for small outdoor concerts and performances. Encourage artistic expression at a variety of scales and locations. • Install small sculptures meant for small children and a slow pace. • Promote artistic expression in hidden and atypical places. Encourage artists and arts organizations to occupy District buildings. • Organize building-wide shows and events. • Offer appropriately scaled and priced artist housing. • Develop studio and gallery space in buildings. ~' f- Art for keen observers i 1 CUNINGHAM G H O U P Creative signs Window art exhibit Sculptural drainpipe 5. Development Summary 5. Development Summary Context Plan: Off Site Improvements ~~ ~~~` ~~ e~~~s ~ ~ ~ ~ ~ ~'~~'ti4 ~:1 $ d ~ ~~~ ~ ~ d 4~ ~ i ~ ,~~ xu e4~ «---- ~ ~ V CUNINGHAM G P O U P 5. Development Summary Illustrative Master Plan -! ~ ; ~ ~ ~~ 1' -- ~~~~= ~~_, ,; ~~ ~~~ ( ~ ~~~' ~~\:v ''- ~, Landform Park ~~ i ~tl ~ '~ F,dundry Square ~ \~~ e~` 1 ~ _. ~ ~ ~ ~ ~ ~~ - ,~-~ ~ J rr tt 1~ ~\ _ ~. l~ r ~ ~, `,; t ; ~, \ ' ~` ~~° r '~~ ~ ~ Kirby Farley Plaza ~~ >, 1 ~`~ ~~ ~ ~; ~,-I~ > ~; ~ ,, i. ; ,! ,~`, ~ ;, f .;. ~; ~d ~' ~~{ "`'~ CUNINGHAM G P O U P 5. Development Summary Places Streets Jackson Street 10th Street p~ E 'v CUNINGHAM G P O U P 5. Development Summary Places (continued) Spaces ~' Landform Park Foundry Square '~.f CUNINGHAM G R 0 U F Development Program ~t 1f~s~'r_ 5. Development Summary r ~ ~ I i ~ ~ r 1 No~~ a~ ° 1 Block Name A Spahn and Rose B Spahn and Rose z C Spahn and Rose D Geisler E Spahn and Rose F Caradco J a G Caradco H new I various Units(new) Non Res sf Parking 25 0 29 55 0 64 55 0 64 a7 0 80 72 5,000 72 84 10,000 45 22 34,000 44 64 30,000 1S0 7o to,ooo so 84 35,000 0 0 6,000 200 40 57,000 28 0 0 0 50 70,000 344 64 89,600 235 634 359,000 1468** ~ ~ ~ 1 1 Caradco ~ K Foundry Square 1 I L Wilmac* M JELD-WEN h N Kirby* O .~ '^ O Farley Loetscher* ~~ TOTAL *nssumes 1/1 residential, 1/1 non residential, see page 7l "(does not include on street pnrking) i I ~~~`i i CUNINGHAM c a o u a 5. Development Summary Land Use /Development Patterns Rehabilitation and New Construction Ground Floor Uses d _ d - 4V ~ ~ ~ . ''~. 1 \ r ~ ~~ ! ~~¢""~ It fW;fx v` ~, ~~ ~':~".41~~`~" ~r.At KE~~tiC ~F ! ~ ~`~ t Ti~ ~ ! i< 1 t j ~ ~~ ~ r ,~' , ~I ,~ \ r t ~~~" ~ ~.,. ~ ,~; k ~ 7 / ~.`~p~ uv_ ~ \\, ~~ ~ 'ham yi .,! \1~` ~! \ SO• ~.. `'} / !! 'tad ', r ~ t\ r \ i f ~ r~ ' rr , ~A ~ ~ yj, '.' r d/ 1 ~ ~ ~ ~ ! ~. ! t ~ T~.. < ~ ~., v 1 ~„ ~ .~ ~ r ~. r - y / '< ~ ~ ,, i ST -I ~°" \~~,. ~ ~f rr 6^ ~ / . - _ - -- !! t , ^ Retail O approximately 97,000 sf retail/ restaurant Residential Parking Q approximately 10,000 sf retail/ restaurant Flexible IIIr '. '"(di ' CUNINGHAM I G fl O U P 5. Development Summary Open Space d ~ ~`~ o ~` ~ so t ` r 4 ~~-~~' ~ ~o~P ~ ~~ ~,' `. '~- N 7A d, ( L ~'\__.` N ~' 1 ~ ` ~ '`~ -y ', i ' ,v .j ~4 i ~ ~ r ! ~ ~ 1 1 1 1 ~', f 1 `~ 1 1 jr._ `'' ! kx _1, # ! ~,rv~` . XXXr ~~~~ ~: `'- t `a ~' ~~ ~' ~ \ '1 i~~' a`'Si i CUNINGHAM G F O U P ® Sidewalks Plazas and Plaza Streets Courtyards/Passages StormwaterFeature/Sculpture Park 5. Development Summary Parking ^' ~ ~~ ~ '~ i~ ° _ ~ ~~' ~"~ ~ ~r~ , " 'ham ''` S ~\ /~ +s~ 1\/` l' t ~ ~t i 1 +• A . ` ~~ t ~ t ~ ~ - i ~`°-~ ,1~ 63 'A _ ~ ~ ~~,v I t ~` \ , \~~ ~~ , ~~`'~- / ~1~' ~ ~ '; ,, , ~ t ~. ~ ~~ y '~ 1 ~. .~ On street Type North Central South TOTAL ^ Structure on street 111 193 79 383 Surface Lot structure 0 200 344 544 iln Building surface lot 48 26 263 337 in building 165 421 0 586 324 840 686 1850 I G F O V P 5. Development Summary Streets Type of Investment - d ~ N' i F ~~ ~ .: r ~. o~ ;` ` ~~ ~ t~ ~ ~?~ ~, \~ ~r' ' r r t i ~ 1 r ~ ~\ 1 `~ ~ 1 ~ , .b` ~.~ t"3 ~ ~~ ~t%?r ti. Existing Streets: Full Reconstruction New Streets and New Right-of-Way ~ ~ Streetscape Improvements Only . Jackson Street: Partial Reconstruction a s ~~ ~~ }~ t ~ ~4 t ~~_~ ~ ~, t~ •, i`', ~: ~~ f .~f l y ~ach`'c. i :'~ ' ~`. i ~ i ~ i i ~ ~ ~ i 1 1 \.'' ;' ~~ -. 1 '~, f`' w~ ~ I {_ ~;,,~~~~_~,,, ~ f;• F `: \ w t ~'' S< ~S tC ~ ~ r~~~ /f `~ ' sir ~~ ~ i t twa ~ V ~ t i ~. Green Street with Linear Stormwater Planters Green Streets with Stormwater Planters in Curb Extensions Plaza Street Jackson Street t '>y;j{ CUNINGHAM G R o U P Type of Street 5. Development Summary Streets with Linear Stormwater Planters ection f)OW curb .tensions the end of / A Streets with Stormwater Planters in Curb Extensions at the End of the Block ,sr ,~ .~ -i ,! ;;~,i ~, ~,~~ ~ G~',6 I ro y ro ~, r8 ~ 9 ~Y Nr. ~ ~~ ~~ Linear planter [_T',t CU NINGHAM G A O U P T C 7 C N Q .~ a '`y • .` a- e ~ - ~ _ ee .. e e ' e e ~yyjjVVtiAA e s~'f e ~:-'. e ee e, '~ ,~ co°S~ e ~asr~o9 .e 1 ee ~ , /~;a 1 1 ..9 ~~~ '' ___ h~~ ~ ~ e ~, ~ Pie ~,~ ~ Ge~Cta V `~~ ~ v ~~ ~~. t .,~ °' ~St ~ _~ ~^.. ~' ~ ~~,. el ~ ~_ t eee G~u`~ r' a ~/~ z ~~ ee .. eeee ~ ~ I ~ Je n5~ e' ~~ ~ CQO~Ca\ P ~a5~`r9~o 'e s ee - ~~~ r ~ e - V ~~ ~ ~~ e-~ to '..6w> ee ~~ e ee e s .~ F •'. A ..~^~ . 1`" ti --~ .r" e .Nas~s~~` ~ ,~. ~ ~ ,~ ~ ~' ~ ,~ 1 7, ~ m~ ~\ ~' {~~ 1e ~ ' ee e e e ~: e ~_. ~~ ee 4 . ee i ID ``e o~S .ti~r9t '. ~~~~," '® i~ Q _~~i Y ~_ ~ ~ t l~ r+i ~~ y N 1 rp 1~ ~~ ~~ ~~~~ ~ ~. h.~. ~. . iC?. '4~ .~.~'ln `few :.1`io~ ~'~~i ` l~ e ~ ~~ ~~ ~-~' Y~ . .}- 1 .... .. ^~ ~ ~a a x~ z° z= V ~ 6. Phase I: Central Area The Caradco Complex, the Alamo Building, and 10th Street will become the mixed-use center of the District. Anew plaza around the Alamo Building will become the District's year round gathering place and a showcase of sustainable techniques and technologies. Creative designs for the preservation of buildings will both honor their past and prepare theirs for the future. 6. Phase I: Central Area Existing Conditions and Primary Challenges the central area is located between 9th and 11th Streets. It is the first phase of redevelopment and the mixed-use center of the District. this area contains several large warehouse buildings (the former Caradco Company complex) as well as newer industrial and distribution buildings (owned by and operated by Spahn and Rose). Tenth Street bisects the area, offering the opportunity to connect the District and the recent redevelopment on the 1000 block of Main Street. ~'~~. - I i , , ~~ 1 ~ ~~ __ Caradco Buildings "` ( ~ (. - r r ~_ ~; _ ~ ' :~ i ., ~' .~ r 0., ' , ~, ~. i r II _ _ ~ I s~1 ~ ' ,~ - -~~- - ;~ _' Dean and House Foundry (Alamo Building) Betty Building i ~ ~ / Q~ t ~ ~ t 5 S~• ~ / ~ . - S~. v ~ ,,`,~. ` ~ ~f`~~ a '~ ':w ?. ; ~ . ~- ~ y ~`i Nr ~ - a ~!~/ ~ ~~ i S< ~ ~ i y 'Ili ~: '~ E i / .+ ~ 1 ~i 7` .f ~( ~. ' '0 ~~ R! .= Existing Conditions r ~~, r Primary Challenges • Provide enough parking to support redevelopment but not too much that the district is overwhelmed with motorized vehicles. • Balance historically appropriate rehabilitation with creative expression. • Build attractive local streets with modern new infrastructure. • Reprogram and calm streets to improve access to the District, and connectivity between the District, Downtown and Port. • Convert private streets to public streets. r= ~ •~ i R qq' /; _ '~ ~ \ ` ,t ~ ~ ~y r i ~ .rAl { ~Y t~ ~r t ~E"- ~ ~ ' )3~S ' ~_ ~. t _ ` ~f f` E it r k.. '. ~ ~ ~ ~'qj 7 ..•;~,, 1 x ~ ~ ~ ~` ~ .IEID ~ ~ t~ i~ t N!~'C7 [{a~r~E' 1 ~ ~ ~// r: _'~xr CUNINGHAM G P D U P 6. Phase I: Central Hrea The Plan Redevelopment Development of the central area occurs in two phases. The first phase includes three of the Cazadco buildings and the Betty Building, as well as several new streets, a small parking structure, and a plaza. The second phase includes the realignment of Elm Street, redevelopment of the remainder of existing buildings, as well as new construction on White and Elm Streets. Build-out of Phase One-the three Caradco buildings and the Betty Building-yields approximately 200 residential units and 100,000 square feet of non-residential ground floor space. Non-residential commercial and retail space should be located along 10th and Washington Streets between 10th and 9th Streets. Ground floor uses on other streets should be residential. Extending housing throughout the District will give life to the azea on weekends and evenings; a strong office component will enhance the demand for housing and will enliven the area during weekdays. Primary Recommendations Reprogram or calm rounding streets. (B) Reconnect street grid with new streets and improve existing streets with new utilities and streetscaping. Create a District center t models and showcases tainable technologies 1 techniques and that ~ressive of the creative sure within the District. (D) Relocate or purchase businesses not conducive to mixed-use pedestrian- oriented urban redevelopment. ressively pursue tax and other sources to t redevelopment of adco Buildings. ~~7 ~ CUNINGNAM ~..~,... _. _. G P O U P Illustrative Master Plan 6. Phase I: Central Area The Plan (continued) Redevelopment (continued) The Plan envisions eventual redevelopment of the remainder of the Central Area, including the Jackson Street block between 9th and 10th Streets, the remainder of the Caradco blocks, and eventually the Spahn and Rose properties (in both the North and Central Areas). Early action itetns should include discussions with Spahn and Rose regarding their long term plans and possible relocation to a more accessible location and discussion with property owners on ~ ~ .~ ~,_ w ~"~ ~ ~~~ ~ 1 ~~ ~ ~, • `\ ~~~~ ~. . c ,\ ~ Jackson Street in order to create additional small scale redevelopment opportunities. The Plan also envisions the creation of new development blocks on the west end of the District. By negotiating with IDOT to realign Elm Street betlveen 9th and 11th Streets, approximately 3 acres can be reclaimed and put to use. The Plan recommends approximately rivo-thirds for tlse as a stormwater feature and lalidfortn park, and one-third as a commercial or mixed-use development. ~~~~ ~ ~ `\__. Building ~w `\ ~~!`\\\\ ( ~\ ~"~J\ ' I 1 t1 Phase 1 A: Tl1e initi~il phase of the project should focus on redeveloping the Caradco Buildings around a new plaza, Foundry Square. Building Program Building Units Non-Residential parking Caradco A 84 35,000 sf 0 Caradco B 84 10,000 sf 45 Caradco C 22 34,300 sf 44 Betty Building t2 7,000 sf 0 Alamo 0 6,000 sf 0 TOTAL 202 92,300 sf 69 note: non-residential space can be used for housing if market demands dictate it. If on ground floor, space should be designed to be flexible and postentially converted to non-reidential in the future. Parking Program Location Supply In buildings S9 On street 80 improved streets only In structure 200 In lot 77 TOTAL 446 Use Assumption Demand 202 Residential units 1.0 spaces /unit 202 spaces 92,300 Non-residential uni ts 3.0 spaces / 1000 sf 277 spaces TOTAL 479 i • F'.t CUNINGHAh1 G F O V P 6. Phase I: Central Area The Plan (continued) Redevelopment (continued) Historic Preservation and Creative Expression As a National Register Historic District, qualified projects are eligible for federal and state historic t~ix credits. In order to receive the credits, designs for rehabilitation of buildings must adhere to the Secretary of the Interior's Standards. Generally, this consists of preserving the distinctive qualities of buildings and spaces. It is preferable that required replacements or additions be located on secondary facades or be designed to reflect their own time and contemporary styles. 'They should not attempt to mimic historical styles. This Plan proposes an approach that balances the Secretary of the Interior's preservation guidelines and the community's desire to create unique environment conducive to and expressive of creative and artistic endeavors of all types. The approach seeks not to freeze passes and skywalks the District in time but rather to honor the past while welcoming the future. Central to the approach is the embrace of an industrial aesthetic consisting of: • Large volumes and repeated patterns, • Exposed mechanical systems. • Heavy strong materials. • Distinctive elements such as loading docks, large awnings, and overhead elements connecting buildings. The Plan proposes to preserve primary facades. Original window and door openings, cornices, and other significant features should be preserved and repaired. Significant additions, such as roof gardens, greenhouses, and exterior balconies, should occur on secondary facades, in courtyards, and on rooftops. Elements that made the District unique (loading docks, large awnings, second story passes or skyways, passages, and courtyards) should be celebrated and creatively reinterpreted. CUNINGHAM11 G ft O U P loading docks Highliyhtiny Distinctive Elements overhead utilities industrial structures oversized doors and windows 6. Phase I: Central Area The Plan (continued) Parking To support redevelopment of warehouse space, considerable parking space must be created. The Plan recommends asupply of on-street parking, surface lots, a small structure, and parking in and beneath buildings where possible. T~vo of the three buildings can convert basement space (and portions of first floor space) to parking; however, this will not be adequate to support filll redevelopment of the three Caradco buildings. Additional parking is required. The Plan recommends approximately 200 spaces in a new rivo level parking structure on the Alamo Building block. the structure accommodates weather protected resident parking on the first floor and guest/customer/ visitor parking on the upper floor, with visibility and access to Foundry Square.The strucritre should be designed to be expanded, in the future, if needed, to 4 or 6 floors. An additional 193 spaces are provided on new and improved streets. 165 spaces are created beneath two existing buildings. Streets New streets are essential to redevelopment in the District. Most streets and utilities are over 100 years old and need complete reconstruction. In addition, new streets in parts of the District must be acquired and created, and others must be improved with traffic calming measures or reprogramming from one- to rivo- way. Reconnecting the street grid is also important. The Plan recommends extension of: • Washington Street from 11th Street to 9th Street. 10th Street from Jackson Street to Elm Street. The Plan also recommends complete reconstruction (new utilities and streetscaping) o£ • 10th Street from Washington Street to White Street. • 9th Street from Elm Street to White Street. • 11th Street from Elm Street to White Street. In addition, the Plan recommends reprogramming 9th and 11th Streets to two-way in order to improve access to the District and wayfinding throughout Downtown. All new streets listed above should be built according to the green street standards previously described. On Street 193 ~ Existing Streets: Full Reconstruction ^ Structure 200 ~ New Streets and New Right-of-Way Surface Lot 26 ^ ^ Streetscape Improvements Only ~ .. ~ In Building 421 ® Jackson Street: Partial Reconstruction TOTAL 840 CUNINGHAM G P O U P Parking: Central Area Streets: Central Area 6. Phase I: Central Area The Plan (continued) Streets (continued) Jackson Street In order to maintain the historic aesthetic and warehouse environment, the Plan recommends partial reconstruction and improvements to Jackson Street. Currently, Jackson Street has original bricks and rail tracks on the driving surface. The road is in poor condition, with no drainage and, in places, 18-inch curb heights. The Plan recommends removing a narrow six-foot section along the length of Jackson Street to install utilities. The six-foot section should be located in the center of the street in order to provide the oppportunity to improve the portion of the street in the worst condition. After utilities installation, the tracks should be set back in place, and the bricks should either be replaced or used elsewhere in the District for accents, edges, or banding in the streetscapes. __- ~~ ~,. Jackson Street: The driving surface will be improved, but the brick surface will remain. ~~ ~~%~ CUNINGHAM G R O U P 6. Phase I: Central Area The Plan (continued) Streets (continued) 10th Street Tenth Street is a critical connection to Downtown and a unique street within the District. With the historic Caradco buildings defining its edges,l0th Street will be the most identifiable place in the District. Between Jackson and Elm Streets, 10th Street should be designed as a "Plaza Street" or a "Shared Street." Unlike other District streets that will have substantial landscaping and generous curb extentions or linear planters that manage stormwater, 10th Street will be built with permeable pavers. Instead of capturing stormwater runoff in planters, the street will shed water to the Elm Street stormwater feature in Landorm Park. Tenth Street will be filrther distinguished by having only a subtle distinction between the sidewalk and the driving surface. Zhe driving surface is texhired and as narrow as possible with carefitlly marked parking areas. The sidewalks are as wide as possible, and are textured and enlivened with storefronts, restaurants, and large arched portals to interior courtyards. People, activity, the Caradco buildings, and reused loading docks will ~~ _.:~ . r..a.: .~ ~, i.~ +. I,- ~~~ `': >r ~_ 15'j 6.5 ~ 22' i 6.5 ~ 15' 65' I. {f I j;: it CUNINGHAM G R O U P 10th Street: 10th Street will become a narrow plaza street. Cars wIll be permitted, but the space should be dominated by pedestrians. 6. Phase L Central Area The Plan (continued) The Alamo Building, Foundry Square & Landform Park The Plan recommends creating a significant public open space in the middle of the District. The space has ttvo separate but related parts: 1) a plaza (Foundry Square) and a 2) stormwater feature (Landform Park). These will be built in two phases. Foundry Square is a year-round gathering space defined by the historic Caradco buildings on two edges, the restored Alamo Building in the middle, and by the plaza design throughout. The plaza sets the District standard and tone by highlighting and showcasing the arts and sustainable technologies and techniques. Active edges animate the plaza and occupy both the ground floor and upper levels of surrounding structures. The Alamo Building is a landmark building in the plaza. It should be renovated as a flexible space for lease to retailers, restaurateurs, or as a gallery space, with open circulation similar to a market structure. The south edge of the Foundry Square is defined by a rivo-level parking structure. The parking structure has a well designed north edge, such as an art wall, for better integration with the plaza. The bosque of trees on the east edge of Foundry Square provides shade, defines the plaza, and offers a variety of spatial experiences. The bosque can improve infiltration and increase permeability. In addition, maintaining portions of existing buildings on site creates a structured corner to the bosque and plaza. .~-~ ~~• The Alamo Buildin~:l7ie former Dean and Rouse Foundry. Over time, the District's central open space can be expanded to include a green space on the east edge of the District. By realigning Elm Street, land can be reclaimed and used for redevelopment and public amenity. As the topographic low point in the District, this area is ideal for a stormwater feature/landform park (using the excavated fill from the parking structure). Like the plaza, Landform Park showcases both the arts and sustainable techniques and technologies, possibly serving as a sculpture park, geothermal field, a structured wetland, or space for a blackwater or graywater treatment plant known as a living machine. i tr i 1 ~~ ~ ~~ ~; `; ,' ~_ I~~ I i CUNINGHAM G R O U P Phase 1A: Foundry Square Phase 1 B: Landform Park G. Phase L Central Area Foundry Square: The images above show some of the artistic, event-oriented, and spatial possibilities for Foundry Square. i p~:, ~! CUNINGHAM e rs o u p 5 coon through Foundry Square Looking West: Foundry Square will be a flexible space to be used for a variety o£public activities. The Plaza will showcase and highlight sustainable technologies and practices. 6. Phase L Central Area C ,~f V CUNINGHAM G R O U f Landfon ii Par{.:1he images above show some of the artistic, sustainable, and spatial possibilities for Landform Park. .r ~ , ,~~ ,; ~ :-:- i ``ti~~ '' ~ , ~~ KF ti.~ ~ ' 1 ~ ,.._ .t ' i' ~ t .rte- ~ i ~ ~ Ipp E. i oPH~y '.u '~ ,l~~f~ ~7, ~. - -r~,. .r_ ~ . _ _, 7. Phase II: South Area Redevelopment of the "Ihe Kirby Building, Farley Loetscher Building and Wilmac BuIlding into offices/residential will infuse the District with a lively daytime population. 7th Street will be a critical pedestrian connection between the District, Downtown, and the Port. 6. Phase II: South Area Existing Conditions and Primary Challenges The South Area is located between 6th and 9th Streets. Zhe area is dominated by three larger warehouse buildings, each over 100,000 square feet (Wilmac Building, Farley and Loetcher Building, Kirby Building) and JELD-WEN, a manufacturer of doors. Stakeholders view JELD-WEN's presence as an asset to the District and a link to the District's history. JELD-WEN does not generate significant truck traffic; however, JELD- WEN's operations will have an impact on land use and development. Fifth Street extends through this portion of the District, offering opportunities to use this street as a full connection to Downtown and the Port. . ~; : ~~~ ~~ , ~j ~-.h R ~c ,~ ! t, . ';~ Wilmac Building Existing Conditions ax,y ~_ i Primary Challenges • Organizing redevelopment around the operations of JELD-WEN. • Creating conditions that help JELD-WEN continue to operate during redevelopment and into the future. • Creating connections to Downtown and the Port. • Supporting the larger warehouse buildings with sufficient parking and access. • Creating adequate connections between the central and south area. CUNINGHAM G R O U P Kirby Building 6. Phase IL South Area The Plan RedeveluN~++ent Most redevelopment opportunities in the south area are in rehabilitation and redevelopment of three large warehouse buildings: the Wilmac Building, the Farley Loetscher Building, and the Kirby Building, which together total krr..~.d...ately 400,000 square feet. The Wilmac Building is partially o..cu~l~ed; however, the Kirby and Farley Loetscher buildings are mostly vacant. the Plan recommends redeveloping these three buildings with a mix of uses. Each building could be redeveloped with both h„~.~.~~g and commercial uses. Market conditions should dictate the eventual split between residential and non-residential uses. t e ~~ ~~ e ', ~~" e~ l ;. `\ ~. -,~~ „`; ,~ Primary Recommendations (A) Redevelop each of the three large warehouse buildings with a mix of uses including offices, residential and retail. (B) Develop a single multi- storyparking structure adjacent to the Kirby Building. (C) Redesign 7th Street as an address to the Kirby Building and Farley Loetscher Building as well as a connection between Downtown and the Port. tr.~'1 ~ CUNINGHAM t _. G p O U P ~~" ~ ~"1' 5^ l: `~ ~ %' ~. Illustrative Master Plan 6. Phase II: South Area The Plan (continued) Redevelopment Both the Kirby and the Farley Loetscher Buildings can be positioned to land large tenants looking for large floorplates and up to 180,000 square feet of office space. Both of these buildings are visible and accessible from the highway and from Downtown. They have large windows and open floor plates. The Greater Dubuque Development Corporation, the City of Dubuque, Dubuque Main Street, and Dubuque Chamber of Commerce should actively market these two buildings for a large office tenant. 1\ ~~ .~ ~~ ~~ L ~~' A ,' ~~~~'~~ ~; \~ ,,~ ~~ Illustrative Master Plan ~` ~1~ i t; ~' /' • 1 . ~ r'' ~~ I r r ~~ ~~ _~ ~ ;:~Sp' The buildings can also house medium and small tenants. The floorplates are flexible and can be divided to accommodate different size tenants and users. Ultimately, the market should determine the split between residential and non-residential uses. The Plan recommends portions of the buildings with housing be located on the sides of buildings facing away from JELD-WEN. Retail uses should not be prioritized in the south area. However, if demand exists, the Plan recommends locating retail on 7th Street in the base of the Kirby and the Farley Loetscher Buildings. CUNINGHAM G R O U P 6. Phasell:South Area The Plan (continued) Parking Providing enough parking is perhaps the largest challenge to redevelop the arr.,...'.mately 410,000 sf of space in the south area. The Plan recommends a single parking structure (+/- 325 spaces) adjacent to the Kirby Building (possibly with ground floor retail) and awell-designed and landscaped surface parking lot (+/- 235 spaces) around the Farley Loetscher Building. Given the parking demands of office and retail relative to housing, the planned 560 spaces will comfortably support a redevelopment prc5.a.., that is arr.~,.....ntely 325,000 sf of housing (+/- 232 tlnits) and 108,000 sf of office or retail. If the market drives a redevelopment program that re4..1.~:; more than the planned 560 spaces, ofd site solutions such as Downtown .~,...rs, the publicly owned ramp at the Port and/or a transit circulator should be explored. Building Supply ~~ . ~ ~~ ~. ~~ / ;1 / , s~aces at Area of r[rict 1 ~ ~ ~~ \ / ~' .3c. ;, ~_ Off si!e parking: Depending on the build out of the south area, off site parking maybe nee~ed. Sidewalk improvements will be necesarry to fully utfliz:. r,.f.~l.~ in the Port Building Parking Parking Surplus/ Program Demand Supply (Deficit) nan-residentinl: 108,200 s/ '\ \ _ O 'o w r:+ 'I~''_~,v - - ~\ h residential: ~- - (A) Wilmac 114,000 sf 324,600sf s ~~ ~ (B) Kirby 139,200 sf non-residential: t (q Farley &Loetscher 179,200 sf N 216,400 sf q~~r ! 432,800 sf o ~ ~ d N •y t residential: 1 1 216,400 sf j non-residential: -_ 324,600sf o b v N residential: 108,200 sf 555 cars 560 spaces 5 spaces 801 cars 560 spaces (241 spaces) 1051 cars 560 spaces (491 spaces) note: All parking deficits to be accommodated with off site parking (see image at top of page). assumptions: 1 parking space /residential unit 1400 gsf /residential units 3 parking spaces per 1000 gsf non-residential if CUNINGHAM G F O U P 6. Phase II: South Area The Plan (continued) Streets 7th Street Seventh Street is an important connection between the Port, the District, and Downtown. West of the District, 7th Street offers a direct connection to Town Clock Plaza on Main Street with the reconfiguration or redevelopment of the Iowa Street ramps. To the east, 7th Street could connect to the historic Shot Tower, Star Brewery, and the Port. Street improvements in both directions are critical to realize the full potential of this connection. Within the District, 7th Street should become the primary address for both the Farley Loetscher and the Kirby buildings. Seventh Street could be designed as a plaza street, similar to the proposal for 10th Street. Main entrances and entry plazas should flank 7th Street, helping to make a gateway between the Downtown, the District and the Port. As in the central area, designs for warehouse buildings should balance preservation with creativity. Building additions or alterations should emphasize the building entry, its relationship to 7th Street, and the flanking plazas. -f'~ CUNINGH AM G R O U P (A) Kirby/Parley Square on 7th Street 7th Street Connection (B) Inw~a Stree[ Ranii~~: If redeveloped or reconfigured, 7th Street could connect to Town Clock Plaza via a public stairway. 8. Phase III: North Area The area between 11th and 12th St will become the neighborhood edge to the District. Over time, industrial uses will make way for new residential and mixed-use developments. 11th Street will be re-purposed as significant gateway to downtown and a pedestrian friendly street lined with both new and renovated buildings. 8. Phase III: North Area Existing Conditions and Primary Challenges The North Area is located between 11th and 12th Street, Highway 61- 151 and White Street. The area is the south edge of the Washington Neighborhood and the north edge of the Historic Millwork District. Most of these three blocks are occupied by Spahn and Rose and other industrial/ distribution uses. The east edge of the area is used to transition the ramps to surface streets by merging two one way streets into Elm Street. .~ ~ r t ~,:.~1.. ~ t ~ } I t,\'. !'~ f '. ~ ~ ~ ,. ~ ~, ~ `' a '""'~ .. Existing Conditions ~~•, s I '%" Primary Challenges • improve the connections between the Washington Neighborhood and the District. • Improve the redevelopment potential along 11th Street, a primary feeder to the highway and portions of the Port. _ ,~:«:_- r f9 ~ t 1 :f ~, ~ ~~. } s ~/ ids t + . l 4@ll~~, `.. `I ~>>~ - i ~1~' ~j ~ ~ ~itS __ , ,, ~/ ~ , . _- T ~- ~` I '`~t ~. __' a°_. _ CUNINGHAM G P. O U P Jackson Street White Street 8. Phase lil: North Area The Plan Redevelopment Primary Recommendations Redevelopment of the north area will likely be the final phase of (A) Redevelop the redevelopment. Currently, most of the property between 11th and 12th Washington Neighborhood Streets is owned by Spahn and Rose. As a lumber yard and distribution site, edge to create a positive the truck traffic and activity is not conducive to surrounding urban uses. transition to the District. If the City and Spahn and Rose agree to a relocation plan, the property (B) Redesign 11th Street as a green street, with can be redeveloped with uses complimentary to the District and to the two way traffic and ample Washington Neighborhood. "Ihe Plan recommends redeveloping with landscaping. primarily residential uses and street improvements designed to reconnect the (C) Realign Elm and Washington Neighborhood to the District. Pine Street to create a developable block on the Zhe Plan recommends connecting the District and the Washington east edge of the District. Neighborhood by extending the scale of buildings and development from Develop this block with each area onto the blocks beriveen 11th and 12th Streets. Generally, the a multi-story gateway building. Washington Neighborhood consists of smaller scaled housing oriented to the north-south streets. 'This pattern can be extended across 12th Street. ~~~~~) ;, CUNINGHAM I._/ __ G fi O U P Illustrative Plan: New development on the northern most blocks of the District will help reconnect the District to the Washington Neighborhood. 8. Phase III: North Area The Plan (continued) Redevelopment (continued) The District consists of larger warehouse buildings. Therefore, the Plan recommends extending this pattern across 11th Street, and then transition to meet the neighborhood scale buildings at mid-block. Buildings on 11th Street should front on both 11th Street and the side streets in order to fitlly implement the transition. Moderate setbacks or courtyards on 11th Street will create a stronger landscaped appearance to the street, enhancing its unique role as an important entry to Downtown, the Washington Neighborhood, and the District. The easternmost block in the north area is under utilized; it is occupied with roads that transition the neighborhood streets to the southbound on-ramp to Highway 61-151. The Plan recommends realigning both Elm and Pine streets to enable the redevelopment of the property as a multi-story mined-use building. The buildings and sites should be designed as a gateway to Downtown and the District. A ~ c~ i , 0 ~ south bound exit ~~~ ' A from Hwy 61/15 .- d~ ~\.. d~ ~ ~a ~~~~ ~~ ~: ~ r~\ r' N~~ 0 ~~' , s ~~ G ~. Reconnecting the District and the Washington Neighborl~oocl: "Ihe blocks between 11th and 12th Streets can become the seam and transition between the District and the Washington Neighborhood. i _b f_ fUNINGHAM G R O U P Gatetva/Sites: Entrances to Downtown and the District should be highlighted with significant and iconic buildings. 8. Phase III: North Area The Plan (continued) Streets Eleventh Street will remain an important and relatively well-traveled feeder to the highway. The Plan recommends converting it to two-way, maintaining its capacity but calming the traffic so that it becomes a more desirable address for urban redevelopment. The street can be enhanced with stormwater planters on both sides and on-street parking on one side. These improvements will help buffer new development from traffic and will provide valuable on street parking for the District. The Plan also recommends realigning Elm and Pine Streets to be simple extensions of their alignment in the Washington Neighborhood. They will extend straight into the District as two-way streets, offering a clear, easily understood connection between the District and the neighborhood. They will remain important feeders to Highway 61-151. I~. ~ ~.~~~~'. CUNINGHAM G R O U P Realignment of Elm anti Pine Street: New alignments for Elm and Pine Streets, and converting 9th and 11th Streets to two-wa}' will increase access to the District and Downtown, and will create ^ew block that can be developed with new constriction as well as a wetland feahire and landform park (sec section-). Economics Research Associates Final Report Demographic and Market Context Historic Millwork District Masterplan Prepared for: Cuningham Group City of Dubuque Submitted by: Economics Research Associates December 31, 2008 ERA Project No. 17886 This study was funded by a grant from the US Department of Commerce, Economic Development Administration 20 E. Jackson Boulevard Suite 1200 Chicago, IL 60604 312.427.3855 FAX 312.427.3660 www.econres.com Los Angeles San Francisco San Diego Chicago Washington DC London New York Table of Contents I. Project Summary .......................................................................................................... 1 Market Implications .................................................... ............................................................. 1 11. Introduction ................................................................................................................. 3 III. Market Analysis ............................................................................................................ 4 Population ................................................................. .............................................................4 Households ................................................................ ............................................................. 5 Age and Household Shifts .......................................... .............................................................5 Household Segmentation ............................................ ............................................................ 6 Education .................................................................. ............................................................. 7 Income ...................................................................... ............................................................. 8 Migration ................................................................... ............................................................. 8 Housing ...................................................................... ............................................................ 9 Home Sales ................................................................ ........................................................... 11 Urban Housing Analysis .............................................. ...........................................................12 Retail ......................................................................... ...........................................................13 Tourism ..................................................................... ...........................................................13 Economic Base ........................................................... ........................................................... 14 Case Studies ............................................................... ........................................................... 15 Implications ............................................................... ........................................................... 15 IV. Appendix ...................................................................................................................... 1 Economics Research Associates Project No. 17886 General & Limiting Conditions Every reasonable effort has been made to ensure that the data contained in this report are accurate as of the date of this study; however, factors exist that are outside the control of Economics Research Associates and that may affect the estimates and/or projections noted herein. This study is based on estimates, assumptions and other information developed by Economics Research Associates from its independent research effort, general knowledge of the industry, and information provided by and consultations with the client and the client's representatives. No responsibility is assumed for inaccuracies in reporting by the client, the client's agent and representatives, or any other data source used in preparing or presenting this study. This report is based on information that was current as of December. 2008 and Economics Research Associates has not undertaken any update of its research effort since such date. Because future events and circumstances, many of which are not known as of the date of this study, may affect the estimates contained therein, no warranty or representation is made by Economics Research Associates that any of the projected values or results contained in this study will actually be achieved. Possession of this study does not carry with it the right of publication thereof or to use the name of 'Economics Research Associates' in any manner without first obtaining the prior written consent of Economics Research Associates. No abstracting, excerpting or summarization of this study may be made without first obtaining the prior written consent of Economics Research Associates. This report is not to be used in conjunction with any public or private offering of securities, debt, equity, or other similar purpose where it may be relied upon to any degree by any person other than the client, nor is any third party entitled to rely upon this report, without first obtaining the prior written consent of Economics Research Associates. This study may not be used for purposes other than that for which it is prepared or for which prior written consent has first been obtained from Economics Research Associates. This study is qualified in its entirety by, and should be considered in light of, these limitations, conditions and considerations. Economics Research Associates Project No. 17886 i 1. Projeet Summary Economics Research Associates (ERA) was engaged by the Cuningham Group through their contract with the City of Dubuque to evaluate the market and financial feasibility implications related to revitalization of the Warehouse District in downtown Dubuque. ERA's analysis has revealed a series of demographic and economic trends that will influence and shape demand for development in downtown Dubuque, as follows: Market Implications ^ Dubuque County is the anchor of a 10-County region with an estimated 335,300 residents. By 2012, the 10-County region is projected to experience an annualized growth of about 1,000 people -Dubuque County is projected to represent nearly half (47%) of this population growth. ^ While Dubuque County population growth has exceeded statewide benchmarks, annualized population growth for the city of Dubuque has been modest (0.2%). Over the next five years, annualized population growth at the city level (0.3%) is currently expected to trail statewide benchmarks (0.5%). However, city of Dubuque population growth is projected to be sufficient enough to maintain the city's share of 10-county population (17.4%). ^ By 2010, persons living alone are expected to represent 34.8% of non-family households in Dubuque as compared to 26.8% nationally. These retirees and young professionals will ultimately drive demand for smaller, urban housing options and maintenance-free living. ^ IRS migration records indicate that between 1997 and 2007, Dubuque County transitioned from a net annualized out-migration (447 households) to a net annualized inflow (70 households)-a dramatic improvement from ERA's perspective. During this period, Dubuque County averaged 353 in-migrant households annually from "urban" counties with Cook County, Illinois, and Linn County, Iowa, representing the largest share of these flows. ^ ERA estimates 395 new urban-lifestyle households within Dubuque County since 2000-despite growth in households with a propensity for urban living, the downtown Dubuque housing inventory only expanded by an estimated 30 units between 2000 and 2008. ^ Lifestyle segmentation analysis suggests that the top urban lifestyle segments moving into the MSA are slightly less affluent when compared to MSA household segments overall. Analysis reveals a median home value of $114,800 for top MSA lifestyle segments overall, while top urban segments are characterized by a median home value of $84,300, which reinforces the need for price sensitivity with any urban project. ^ Condos, duplexes and single family homes built since 2000 represent just 4.4% of Dubuque's citywide inventory-none of these units were built in downtown Dubuque. Economics Research Associates Project No. 17886 Page 1 ^ Between 2003 and 2007, annualized increases in condominiums and townhome sales in the city outpaced increases in the number of single-family home sales revealing a growing demand for higher-density housing. ^ Across the Midwest, cities have seen notable development of modern walkable urban housing. In these benchmark cities, modern urban housing remains a small but growing share of the market, representing between 0.4% and 1.9% of total metropolitan area inventory. For Dubuque, with a modern inventory of about 30 urban housing units, the comparable market share is about 0.08%, which argues for additional growth. ^ Data from the Office of Federal Housing Enterprise Oversight reveals that between 1998 and 2007, home values in Dubuque County grew at an annualized rate of 4.3%- while consistent with state-level appreciation (4.3%), average appreciation at the national level was notably higher at 7.1 %. This finding suggests that housing prices in Dubuque County can be anticipated to decline less dramatically as compared to housing value declines at the national level. ^ Dubuque County office sector employment grew by roughly 950 positions between 2001 and 2006. Should recent employment trends continue, this would translate into 40,000 to 50,000 square feet of additional office capacity required on an annual basis at the county level. In practical terms (i.e. a weakening economy), demand will clearly slow over the near-term. ^ The city of Dubuque in 2007 generated $960,502,748 in total retail sales- Dubuque's share of county sales has remained constant since 2000 despite the city's reported decline as a share of county population. ^ Growth in Dubuque retail sales between 2000 and 2007 far exceeded annualized growth in regional population or households during the same period- this is reflective of area income growth as well as growth in the visitor market. These market findings point to financial considerations for the warehouse district as well: ^ While the market analysis identifies a realistic near-term opportunity for urban residential development (rental apartments), ERA remains concerned about the depth of the local apartment market if all current Warehouse District land owners choose to pursue projects simultaneously. ^ The market analysis highlighted a (by Iowa standards) historic trend for growth in office using employment and retail trade. Obviously, these trends will soften moving forward as the overall regional and national economy deals with the current economic downturn. For this reason, ERA expects that these segments will need to happen after initial residential construction. Economics Research Associates Project No. 17886 Page 2 '~ ', .: I' II. Introduction ERA's generalized approach has included the following efforts with the goal of evaluating changes in the city of Dubuque market in the broader region: ^ An examination of existing market demographics and associated trends including an analysis of migration patterns since 1997; ^ A lifestyle segmentation analysis highlighting households with a propensity for urban living; ^ An assessment of characteristics of Dubuque's present housing stock and an overview of related residential trends including permits, home sales, and pricing; ^ An evaluation of office market indicators, highlighting trends in office-using employment sectors; ^ An investigation into shifts in office sector establishments by size; ^ And an analysis of retail market trends, highlighting regional and sector-specific pull factors and associated trends in Dubuque's retail environment. ^ Case studies of other Midwestern downtown markets that have added urban housing in recent history. Data for this report comes from several sources including: ^ Interviews with key local stakeholders, including developers, bankers, and property owners; ^ Officials from the City of Dubuque and Dubuque County; ^ The Office of Federal Housing Enterprise Oversight; ^ The Iowa Department of Revenue and Finance; ^ The Iowa Department of Workforce Development; ^ The Internal Revenue Service; ^ The US Census; • ESRI GIS Mapping Software This report is one element of ERA's overall market and financial assessment for the Warehouse District. ERA has also prepared a financial analysis of the proposed revitalization program, under separate cover, which evaluates the specific implications of the market analysis for a renovation program in the Warehouse District. The financial analysis document will cover an array of elements including estimated rent levels for apartments, office space and retail space, operating expense estimates, parking, and renovation costs for the existing buildings. Economics Research Associates Project No. 17886 Page 3 if.:z~i~~ 'b 111. Market Analysis The following preliminary memo highlights initial demographic and economic trends for Dubuque which relate to demand for retail, office and residential uses. ERA has examined trends at the city and county levels, benchmarking change against the greater 10-county region (defined by ERA to include the Iowa counties of Clayton, Delaware, Jones, Jackson, Iowa, Clinton, Lafayette and Dubuque, and the Illinois and Wisconsin counties of Jo Davies and Grant respectfully) and the state of Iowa. Throughout this document, a compound annual growth rate (CAGR) has been used to measure the annualized growth-on-growth of individual metrics. An attached appendix summarizes key data tables used in the analysis. The summarized findings are preliminary and reflect ERA's work completed through the end of December, 2008. Population Population growth drives retail sales, housing demand and job growth. Appendix Table 1 highlights historical and projected population levels at the city, county, regional and state levels. Several points are notable to ERA: ^ The city of Dubuque's population grew between 2000 and 2007 by an annualized rate of 0.2%. While this rate of growth was less than at the state level (0.5%), population growth in Dubuque County (0.6%) exceeded the statewide benchmark-this trend is projected to continue over the next five years. ^ Between 2007 and 2012, the city of Dubuque is projected to experience an average annual population increase of 149 persons, roughly 31 % of projected annualized population growth (486 persons) projected for Dubuque County. ^ Population in the 10-County region is presently estimated at 335,327 persons. By 2012, the region is projected to experience an annualized growth rate of 0.3%, an average annual increase of 1,026 persons. ^ Dubuque County is projected to represent nearly half (47%) of projected population growth at the 10-County level over the next five years-neighboring Jo Davies County is projected to represent just 7.2%. ^ As a share of regional population (Appendix, Table 2) Dubuque County is projected to continue growing through 2012. Economics Research Associates Project No. 17886 Page 4 Households It is useful to examine household growth as an indicator for area housing demand-characteristics of these households including structure, income levels and lifestyle preferences will shape area demand for housing. Appendix Table 3 highlights household growth trends, important findings of which have been summarized below: ^ Between 2000 and 2007, the city of Dubuque experienced a 0.5% CAGR in total households, a smaller rate of growth than at the county, regional or state levels. ^ Over the next five years, the city of Dubuque is projected to experience an average annual growth of 126 households, roughly 44% of the projected annualized household growth (287 households) at the county level. ^ According to current projections, there are 132,653 households in the greater 10-county region. Projected annual growth in the number of households is estimated at 708 through 2012. ^ According to current forecasts, the city of Dubuque has the highest average household size at 2.49 persons, suggesting more households with children as compared to the county, state or region. ^ Between 2007 and 2012, the city of Dubuque's average household size is projected to decline from 2.49 to 2.46, an annualized decline of 0.3% exceeding Dubuque County and statewide rates of decline. This suggests significant growth in empty-nest and single households, a trend that will drive demand towards smaller housing units. Age and Household Shifts Shifts in local population characteristics including age and family structure inform the nature of area housing demand. ERA notes important points below as they relate to a growing demand at the city level for urban housing: ^ Between 2000 and 2007, notable increases as a percent of population occurred in the 35 to 44, 55 to 64, 75 to 84 and 85+ age groups, speaking to the city's growing role as a community for middle-aged households and retirees. ^ Between 1990 and 2010, the city of Dubuque will have sustained an 8.7 percentage point decline in married families with children-this is in comparison to a 6.7 percentage point decline nationally. Economics Research Associates Project No. 17886 Page 5 ^ By 2010, persons living alone will represent 34.8% of non-family households in Dubuque as compared to 26.8% nationally. These retirees and young professionals will influence city housing by generating demand for smaller, urban housing options and maintenance-free living. Household Segmentation To further understand the demographic, economic, and cultural characteristics of Dubuque and the region, ERA utilized an analysis tool called Community Tapestry, developed by Environmental Systems Research Institute (ESR1). Tapestry divides households into 65 categories or segments based on several key factors including age groups, income brackets, and education levels, as well as lifestyle choices, neighborhood housing preferences, and consumer spending habits. Appendix Table 6 highlights relevant concentrations of defined segments in the city of Dubuque, and compares these concentrations in neighboring counties and at the state levels-segments with a propensity for urban living have been highlighted in grey. Key findings of this analysis are summarized below: ^ Dubuque households tend to be middle-aged to older, and primarily middle-income. ^ Household segments with a propensity to live in urban housing comprise 20.4% of Dubuque households, as compared to just 14.1 % at the county and 4.7% at the regional levels. ^ Retirement Communities and City Dimensions comprise the largest share of Dubuque household segments with a propensity for urban housing. These segments, in conjunction with an aging population and projected increases in single-parent families will drive demand for rental, multi- unit housing as well as senior housing. ^ Rustbelt Retirees, Rustbelt Traditions and Great Expectations are the most common household segments in the city of Dubuque. Definitions for Dubuque's household segments are located beneath Appendix Table 6. Dubuque's core household segments have been defined below: ^ Rustbelt Retirees--these neighborhoods can be found in older, industrial cities in the Northeast and Midwest, especially in Pennsylvania and other states surrounding the Great Lakes. Households primarily consist of married couples with no children and singles living alone. The median age is 44.6 years. Most residents live in owned, single-family homes, with a median value of $134,314. Unlike many retirees, these residents are not inclined to move. Economics Research Associates Project No. 17886 Page 6 ^ Retirement Communities- these neighborhoods are found mostly in urban areas scattered throughout the United States. The majority of households live in multi-unit dwellings. This educated, older market has a median age of 51.4 years-one-third of residents are aged 65 years or older. Congregate housing, which commonly includes meals and other services in the rent, is a trait of this segment dominated by primarily by singles living alone. Good health is a priority for these households with has implications for housing in areas with pedestrian accessibility to shopping and entertainment. ^ Great Expectations- these neighborhoods are located throughout the country, with higher proportions found in the Midwest and South. They are comprised primarily by young singles and married-couple families- the median age is 33.2 years. Approximately half of the households are owners living in single-family dwellings with a median value of $114,837; the other half are renters, mainly living in apartments in low-rise or mid-rise buildings. Residents enjoy a young and active lifestyle focusing upon going out to dinner, to the movies, to bars, and to nightclubs. ^ City Dimensions-these neighborhoods are located in large, urban cities. The market is primarily young, with a median age of 29.2 years. These segments have a propensity to live in urban-style housing and roughly 63 percent rent apartments in older, multiunit structures. Median household income is fairly low at $15,628. Top activities for these household segments include roller skating, playing soccer and chess, attending auto races and shows, going to the movies, and renting movies. Education An educated labor force is a key determinant of demand for office space, especially for industries that do not specialize in manufacturing. Appendix Table 4 highlights percent of population in 2006 by educational attainment while Figure 3 summarizes percentage point shifts in these figures since 1990. Important findings are summarized below: ^ A greater share of Dubuque County residents has a graduate or professional degree (9%) as compared to the state level (7%). ^ In general, Dubuque County's population is becoming more educated- between 1990 and 2006, the percent of Dubuque County residents with a graduate or professional degree increased by 4 percentage points as compared to 2 and 3 percentage points respectfully at the state and national levels. Economics Research Associates Project No. 17886 Page 7 Income Area income growth translates into expanded resident buying power for retail as well as housing. Appendix Table 5 outlines median household incomes at the city, county, regional and state levels while Appendix Figure 6 highlights the percent of total households by income. The following trends are noted: ^ Although 2007 median household income at the city level is below the state benchmark, between 2000 and 2007, median household income growth for the city of Dubuque (3.4%) exceeded growth at the county, regional and state levels. Over the next five years, median household income growth at the city level (3.2%) is projected to again exceed county and regional levels. ^ Households with a median income of $50,000 to $74,000 presently represent the largest income cohort at the city, county and regional levels. A key difference between the city of Dubuque and the County is a greater share of households with a median household income of less than $49,999 at the city-level. ^ Between 2007 and 2012, the entire region is projected to experience an increase in higher- income households-- households earning less than $74,999 are projected to decline as a percent of total households. ^ Over the next five years, households earning $150,000 to $199,000 are currently projected to represent the largest growth cohort at the city and county levels-growth in these higher-wage households should generate demand for upscale housing. Migration ERA analyzed IRS data between 1999 and 2007 to better understand recent patterns of migration into Dubuque County as a demand generator for area housing, retail and area employment. The Internal Revenue Service (IRS) collects data from two consecutive household tax returns. Households that file a return from one county one year, and another county the following year are classified as "migrants" while households that file in the same county are classified as "non- migrants" or residents. Among ERA's findings include: ^ Across Dubuque County through 2007, while migrant inflows increased at an annualized rate of 3.0%, migrant outflows decreased at an annualized rate of 0.4%. ^ Over half (64%) of Dubuque County migrants on an annual basis come from outside of Iowa, speaking to a degree of magnetism for Dubuque County. Economics Research Associates Project No. 17886 Page 8 ,~ 1 ^ Between 1998 and 2007, Dubuque County averaged 353 migrant households annually from "urban" counties.' Cook County, Illinois, and Linn County, Iowa, represented the largest share of these flows (Appendix, Table 10). ^ Neighboring Jo Daviess County represents the largest source market overall for migrants into Dubuque County. ^ Appendix Table 9 highlights percent of migrants to Dubuque County by average Adjusted Gross Income (AGI). During the period between 1997 and 2007, households with an average AGI of $30,000 to $40,000 averaged nearly half (44.3%) of total inflows to Dubuque County- households with an average AGI of $40,000 to $50,000 represented another 26.8%. Overall, household with an AGI below $10,000 have declined as a share of in-migrating households to Dubuque County. Housing Retail sales follow new rooftops-Appendix Table 11 outlines the estimated number of housing units at the city, county and regional levels in 2001 and 2007 while Appendix Table 12 summarizes city- issued building permits by residential property type. Appendix Figure 8 through Figure 10 highlight characteristics of Dubuque's present housing stock. Important points are summarized below: ^ Between 2001 and 2007, the city of Dubuque issued at total of 1,347 new home permits, an average of 192 permits per year. Roughly 3,680 permits were issued within Dubuque County during this same period, an average of 526 permits per year. The city of Dubuque's share of county-wide permits grew from 24.7% to 37.4% between 2001 and 2007. ^ The number of new home permits issued by the city of Dubuque grew from 109 in 2001 to 137 in 2007, an average annualized growth rate of 0.8%. Annualized growth in housing permits issued at the entire county level was slightly greater at 1.4%. ^ Between 2001 and 2007, the city of Dubuque has sustained a fairly balanced mix of single-family versus multi-family housing construction (Appendix, Table 12) -during this period, an average of 42% of housing permits were issued for detached single-family construction, while 58% of permits were issued for higher-density housing. ' ERA has classified counties as "urban" if they contain a major population center. Conversely, ERA has classified counties as "rural" if they lack a major population center. Economics Research Associates Project No. 17886 Page 9 ^ Considering some 70% of Dubuque households were childless in 2000 and the local population is aging, demand for higher-density housing will drive the present multi-family housing share of annual permits beyond the present average of 58%. Single-Family Homes, Condominiums & Duplexes Assessor data reveals that citywide, there are some 26,000 single family homes, condominiums and duplexes. Highlighted below are important findings related to Dubuque's housing stock. ^ Dubuque's existing housing stock is fairly old-Appendix Figure 8 highlights that nearly 20% of Dubuque's single family homes were built prior to 1900. Condos, duplexes and single family homes built since 2000 represent just 4.4% of Dubuque's citywide inventory. ^ Appendix Figure 9 highlights the percent of existing Dubuque homes by total assessed value and assessed value per square foot. The greatest share (28%) of Dubuque single family homes and duplexes are assessed between $150k and $200k, with another 26% assessed at between $200k and $250k. EFiA notes a very small share of the housing stock, including condominiums, is assessed at over $300k. ^ Appendix Figure 10 outlines percent of Dubuque`s owner-occupied housing stock by assessed price per square foot. Over half (52.1 %) of Dubuque homes are assessed at $111-140 per square foot. Another 20% are assessed below $110 per square foot. In general, condominiums are assessed at a higher value per square foot as compared to single family homes or duplexes-15% of condos are assessed at over $171 per square foot as compared to just 3.2% of single family homes or duplexes. ^ Appendix Figure 11 plots the relationship between the assessed value and livable space in square feet of a Dubuque home built since 2000. Important to note from this analysis is that in recent years, there has been very little inventory added to the Dubuque housing market with an assessed value exceeding $300,000. In both highlighted property types, there is a positive correlation between assessed value and livable space, however, this correlation is more significant for condominiums as compared to single family homes. Apartments Data from the Dubuque County Assessor reveals there are roughly 5,500 apartment units in Dubuque citywide. Of these units, about 16% are located within Dubuque's downtown. Important findings related to Dubuque's apartment market are highlighted below: Economics Research Associates Project No. 17886 Page 10 ^ Dubuque's apartment inventory tends to be old - of citywide rental units, nearly one-third (32.8%) of these units were built prior to 1900. Another 58% of units were built between 1900 and 1980. Of some 100 rental units built citywide since 2000, 30 were built within downtown Dubuque, along upper Main Street by John Gronen. ^ Appendix Table 13 highlights characteristics of Dubuque's present apartment unit inventory including size and rent characteristics. Of modern inventory built since 2000, a typical 2-bedroom unit is somewhere around 1,000 square feet, a 24% increase over the average size of a 2- bedroom built prior to 2000. By comparison, 3-bedroom units built since 2000 tend to be slightly smaller (2.5%) than their counterparts built before 2000. According to available data, a typical 3- bedroom unit in Dubuque is somewhere around 1,200 square feet. ^ Monthly per square foot rent of a modern 2-bedroom unit ranges between $0.62 and $0.81 psf. Of all highlighted apartment sizes, one bedrooms command the greatest rent on a monthly per square foot basis at $0.67 to $0.87. ^ Typical amenities for an apartment building in Dubuque include air conditioning, dishwashers, hook-ups for washers/dryers, and access to parking. It is less common, although not unusual, for apartments to have in-unit washers and dryers. Home Sales The following section highlights key trends and characteristics of Dubuque's housing market. These trends offer key insight as to the nature of demand for housing around Dubuque, as well as potential gaps in the local market. Summarized below are ERA's key findings: ^ Data from the Office of Federal Housing Enterprise Oversight reveals that between 1998 and 2007, housing price appreciation in Dubuque County generally failed to keep pace with housing price appreciation at the national level. Over the noted period, home values in Dubuque County grew at an annualized rate of 4.3% and while consistent with state-level appreciation (4.3%), average appreciation at the national level was notably higher at 7.1 %. ^ For single-family homes built since 2000, the current median value is $200,500 and median value per square foot is $129. With an overall average value of all homes at $91 per square foot, the market is pricing in a premium of about 42% for newer construction. ^ For condominiums built since 2000, the median value is $143,500 and median value per square foot is $140, compared to an overall average of $99 per square foot- a 41 % premium for new construction. Economics Research Associates Project No. 17886 Page 11 ^ Of the highlighted housing types, condominiums and townhomes represented the greatest annualized growth in property sales between 2003 and 2007 at 8.4% and 6.6% respectfully. Single family homes experienced an annualized growth of just 1.4% from 785 properties in 2003 to 830 in 2007. As such, while single family homes remain the largest share of the market, condominiums and townhomes are seeing more dramatic annualized growth rates. Urban Housing Analysis To understand the potential for housing in downtown Dubuque, ERA compared the present downtown and MSA residential inventories with population characteristics, concentrating on those households with a propensity for urban living. To contextualize conditions in downtown Dubuque, ERA also examined downtown housing conditions within four other Midwestern cities-Des Moines and Iowa City, Iowa; Traverse City, Michigan; and Madison, Wisconsin. The study area used to define each "downtown" is based upon the general boundary of each community's defined commercial downtown area. The approach focuses on the identification of modern /contemporary urban housing that has been built in each downtown market, primarily since 2000. Important findings are summarized below: ^ Of the highlighted markets, Madison's downtown is the largest in terms of the number of "modern" downtown housing units (Appendix, Table 14) as well as in share of the MSA housing inventory. While Dubuque has a significant number of downtown housing units (over 1,000) only about 30 are considered modern, which represents about 0.08% of county inventory. For comparative purposes, modern urban housing accounts for about 1.9% of metropolitan area inventory in Des Moines. ^ Of the highlighted communities, Dubuque has experienced the least modern inventory construction within its downtown-according to County Assessor data, there have been about 30 housing units built in downtown Dubuque since 2000. This is in comparison to about 1,500 units built in downtown Des Moines; 2,700 in downtown Madison; 70 units in downtown Traverse City; and 94 units in downtown Iowa City (Appendix, Table 14). ^ Appendix Figure 1 highlights the percentage point gap between the 1) urban lifestyle households as a percent of MSA total households; and 2) the downtown's share of modern MSA housing. Of the highlighted communities, this percentage point gap is greatest for Iowa City at approximately 48 points-Traverse City and Dubuque are roughly comparable at 10 to 13 points. Economics Research Associates Project No. 17886 Page 12 Retail The goal of ERA's retail market investigation was to understand the current strategic position of Dubuque in the region, and the competitive position of the city as a retail destination. Highlights of the Dubuque's retail market are summarized below: ^ The city of Dubuque in 2007 generated $960,502,748 in total retail sales, an annualized increase of 3.7% since 2000, representing 91 % of the county total ($1,053,103,348) for 2007. Dubuque's share of county sales has remained constant since 2000 despite the city's reported decline as a share of total county population, according to the US Census estimates. ^ Growth in Dubuque retail sales between 2000 and 2007 far exceeded annualized growth in regional population or households during the same period- this is reflective of area income growth as well as growth in the visitor market. ^ Pull factor analysis indicates that in 2007, the city of Dubuque generated 23% more sales than the local population should logically support. The city of Dubuque's 2007 pull factor (1.23) is an increase over its pull factor in 2000 (1.11). ^ Pull factor analysis by retail type (Appendix, Figure 7) highlights that in 2007, building materials, specialty stores and home furnishings generated the greatest sales from outside of the city. With the exception of 1) eating and drinking places and 2) general merchandise, pull factors for all retail categories at the city level increased between 2000 and 2007. ^ Should present income and population growth trends continue and assuming annual retail sales per square foot of $275-$325, ERA projects 122,000 to 144,000 square feet of additional retail capacity on an annual basis for the city of Dubuque. Tourism The Dubuque region is a significant tourism destination. The success of future development in retail, entertainment, lodging, and other sectors will link with the region's ability to attract visitors on an annual basis. ERA notes the following key aspects of tourist visitation and impact on the area economy: ^ Total visitor expenditures for Dubuque County in 2006 were estimated at $236 million. Total visitor spending in Dubuque County increased from $175.23 million in2000, a 5.1 % annualized rate of growth. Total visitor spending in Dubuque County as a share of total visitor spending at the state level increased from 3% to 4% during this period. Economics Research Associates Project No. 17886 Page 13 ^ Although the city of Galena is regarded as a major nearby tourism destination, total visitor expenditures in Jo Davies County in 2006 was estimated at just $157 million. This figure is up from $140 million in 2000-an annualized increase of just 1.9%. Economic Base Employment growth is a reliable measure of economic expansion and demand driver for business and housing investment-in particular, employment growth in office-using industries should drive demand for office space around Dubuque. ERA outlines notable findings related to Dubuque County's economic base below: ^ Between 2001 and 2006, annualized growth in total employment for Dubuque County (1.2%) doubled state-level growth (0.6%)-Dubuque County's share of state employment grew from 3.9% to 4.0%. ^ Dubuque County office sector employment grew by roughly 950 positions between 2001 and 2006 (Appendix, Table 16-should recent employment trends continue, Accounting/Bookkeeping, Insurance, and Internet Search ProvidersNVeb Search/Data will represent the top demand drivers for office space around Dubuque. ^ Assuming an average rate of growth of office employment of 190 positions annually and 225 to 275 square feet of office space per employee, this translates into 42,600 to 52,100 square feet of additional office capacity required on an annual basis at the county level. Within the context of the next several years, ERA would expect lower rates of office job formation. ^ Location quotient analysis revealed Dubuque County office sector employment concentrations in Broadcasting, Traditional Publishing, Medical Offices, and Web Search Services (Appendix, Table 17). However, according to location quotient analysis, several service-oriented industries including Legal Services, Accounting, and Design are less concentrated than within the broader study area-these industries may represent opportunity for growth within the county. ^ Appendix Figure 12 illustrates that of office-using establishments in 2006, nearly half (47%) were small, employing between one and four employees- mid-sized offices with fifty to ninety-nine employees represented the greatest growth in terms of total establishments between 2001 and 2006 (Appendix, Figure 12). Higher wage employment sectors as highlighted in grey grew as a share of total Dubuque County employment between 2001 and 2006 (Appendix, Table 19) Wages overall at the county level grew by an annualized rate of 4% as compared to just 2% at the state level- wage growth ultimately drives consumers' ability to spend. Economics Research Associates Project No. 17886 Page 14 ~ ~ Case Studies To understand the nature of historic warehouse district redevelopment, ERA examined four Midwestern cities that have successfully redeveloped an existing urban warehouse district- Cleveland, Ohio; Omaha, Nebraska; Milwaukee, Wisconsin; and Wichita, Kansas. Case studies are located in the Appendix, with important findings summarized below: ^ With the exception of Wichita's Old Town, warehouse district redevelopment tended to be initiated by the private sector. ^ Common between all four case studies is an upfront, high-visibility project within or adjacent to the warehouse district by the City-examples include major streetscape enhancements, individual building rehabilitation, and construction of adjacent parks, plazas and pedestrian malls. ^ Redevelopment tends to occur over a long period of time (10-20 years) and involves players from the public and private sectors. In the case of Cleveland, a local non-profit (Historic Warehouse District Development Corporation) was established comprised of local business interests to manage district and business development activities. ^ In three of the four examples, financing of warehouse redevelopment extended beyond TIF- other mechanisms commonly included Historic Tax Credits, CDBG dollars, grants and HUD loans. Implications ^ Dubuque residents tend to be older than state averages. Reflective of increases in median age, average household sizes are decreasing across the region. The decrease in household size has direct implications for shifting demand towards smaller, denser housing. ^ Age segment shifts at the county level are particularly notable for elderly populations, empty-nest and single households-these cohorts should drive demand for housing units that are smaller and well as maintenance-free. ^ Historical housing appreciation in Dubuque County has been below national levels, indicating that the local market has avoided the worst excesses of the national housing price correction. ^ Dubuque's existing housing stock is older, the majority of which is assessed at under $250,000-condominiums and single-family homes above this price point represent only a small share of inventory. ^ Between 2003 and 2007, annualized increases in condominiums and townhomes sales in the city have outpaced increases in the number of single-family home sales. The vast majority of Economics Research Associates Project No. 17886 Page 15 . ~. ~.~_I condominiums (75.6%), townhome (94.1 %) and single family home (82.8%) sales in Dubuque during this period sold for less than $200,000. ^ There are roughly 870 apartments in downtown Dubuque~f 100 apartments built citywide since 2000, just 30 were built in the downtown. ^ Between 2000 and 2008, ERA estimated a total of about 400 new urban-lifestyle households within the MSA-even as downtown Dubuque added only a modest level of new urban construction since 2000. ^ ERA estimates a 13% gap between the percent of new MSA housing within downtown Dubuque, and the percent of new households MSA-wide with a propensity for urban living. ^ Between 2000 and 2008, the downtown areas of Traverse City and Des Moines added modern housing units (70 and 1,528, respectively), with varying degrees of public incentive support. In Dubuque since 2000, modern housing development occurred at a slower pace compared to either of these aforementioned benchmarks. Given that Des Moines has twice the percentage of urban segments as Dubuque, ERA would define the overall local urban housing opportunity in the 250 to 500 unit range. ^ Dubuque County averages 300 migrants annually from "urban" counties-these migrants are more likely than those from "rural" counties to demand housing in an urban setting. ^ Although wage growth since 2001 in Dubuque County has exceeded statewide benchmarks, ERA expects that the majority of urban housing demand will be driven by people of average means. Economics Research Associates Project No. 17886 Page 16 IV. Appendix Table 1: Population Change CAGR CAGR Projected Annual Jurisdiction 2000 2007 2012 00-07 07-12 Increase City of Dubuque 57,686 58,399 59,143 0.2% 0.3% 149 Dubuque County 89,143 92,767 95,199 0.6% 0.6% 486 Jo Daviess County 22,289 22,823 23,197 0.3% 0.3% 75 10-County Total 327,694 335,327 340,455 0.3% 0.3% 1,026 Iowa 2,926,324 3,030,140 3,110,913 0.5% 0.5% 16,155 Note: City of Dubuque population figures include some 4,500 individuals living in USCensus-defined "group quarters" Source: ESRI Table 2: Share of Regional Population CAGR CAGR Jurisdiction 2000 2007 2012 00-07 07-12 City of Dubuque 17.6% 17.4% 17.4% -0.2% -0.1% Dubuque County 27.2% 27.7% 28.0% 0.2% 0.2% Jo Daviess County 6.8% 6.8% 6.8% 0.0% 0.0% 10-County Total 100.0% 100.0% 100.0% 0.0% 0.0% Source: ESRI Table 3: Households and Average Household Size Number Average Size Jurisdiction 2000 2007 2012 0 92 2000 2007 2012 07 12 City of Dubuque 22,560 23,424 24,053 0.5% 2.56 2.49 2.46 -0.3% Dubuque County 33,690 36,006 37,442 0.8% 2.51 2.44 2.41 -0.2% 1o Daviess County 9,218 9,701 9,983 0.6% 2.4 2.33 2.30 -0.3% 10-County Total 126,300 132,653 136,191 0.5% 2.50 2.43 2.40 -0.2% Iowa 1,149,276 1,213,728 1,253,509 0.6% 2.46 2.41 2.40 -0.1% Source: ESRI Table 4: 2006 Educational Attainment (18+ years of age) Educational Standing Dubuque County Iowa US Less than High School 10% 10% 14% High school graduate (includes equivalency) 40% 37% 32% Some College 18% 20% 19% Associate's or Bachelor's Degree 23% 26% 24% Graduate or professional degree 9% __ 7% 10% Source: US Census Economics Research Associates Project No. 17886 Page 1 Table 5: Household Income CAGR CAGR Jurisdiction 2000 2007 2012 00-07 07-12 City of Dubuque $37,313 $47,047 $55,032 3.4% 3.2% Dubuque County $39,570 $49,138 $56,995 3.1% 3.1% Jo Daviess County $40,441 $48,627 $54,786 2.7% 2.7% 10-Counties $37,902 $46,459 $53,003 3.0% 3.0% Iowa $39,448 $49,331 $57,806 3.2% 3.2% Source: ESRI _ _ _ __ Table 6: City of Dubuque-- Top Tapestry Segments City of Dubuque 1o Daviess Segment Dubuque County County 10-Counties Iowa Sophisticated Squires 6.0% 4.2% 0.0% 1.1% 1.3% Cozy and Comfortable 5.8% 4.0% 0.0% 1.4% 2.4% Rustbelt Retirees 13.1 % 10.2% 0.0% 10.4% 5.2% :Retirement Communities 9.3% 6.4% 3.3% 2.2% 0.6%` Great Expectations 9.5% 6.6% 0.0% 2.1 % 3.0% City Dimensions 53°!0 3.7% 00% 1.0% 1.4% Rustbelt Traditions 13.1% 13.0% 0.0% 10.4% 11.1% Salt of the Earth 4.9% 11.9% 0.0% 13.8% 7 2% Home Town 5.9% 4.1 % 0.0% 5.2% 4.0% Crossroads 4.1% 2.9% 0.0% 1.2% 1.7% Top Segments 76.9% 66.8% 3.3% 48.7% 38.0% Exurbanites 1.6% 1.1% 0.0% 0.3% 2.2% Green Acres 2.5% 13.0% 7.2% 6.7% 5.0% Old and Newcomers 1.7% 1.2% 0.0% 0.3% 1.2°l° Prosperous Empty Nesters 4.0% 2.7% 0.0% 1.2% 1.5% Heartland Communities 3.1% 2.2% 21.1% 10.1% 9.7% Social Security Set... 1.8% 1.2% 0.0°I° 0.7% 0.6°Io College Towns 1.2% 0.8% 0.0% 1.6% 1.3% Aspiring Young Families ;; 2.4% 1.6% 0.0% Oi4% 2.4% Midland Crowd 2.8% 2.0% 0.0% 1.3% 1.9% Midlife Junction 1.9% 1.3% 0.0% 4.7% 6.4% Additional5egments 23.1% 27.2% 28.4% 27.3% 32.2% Note: Numbers may not add due to rounding Source: ESRI Segment Definitions ^ Sophisticated Squires-these residents enjoy cultured country living in low-density, newer home developments with a median home value of $286,622. These residents are primarily married- couple families, educated, and well employed. The median age is 38.3 years. Top family activities include playing volleyball, bicycling, playing board games and cards, going to the zoo, and attending soccer and baseball games. Economics Research Associates Project No. 17886 Page 2 ^ Cozy and Comfortable-these residents are settled, married, and still working. Many of these couples still live in pre-1970s, single-family homes in which they raised their children. Households are located mainly in suburban areas of the Midwest, Northeast, and South. The median age is 41.9 years and the median home value is $184,456. Top activities of these households include playing softball and golf, attending ice hockey games and gambling at casinos. ^ Rustbelt Traditions- these neighborhoods are the backbone of older, industrial cities in states bordering the Great Lakes. Most employed residents work in the service, manufacturing, and retail trade industries and the majority live in modest single-family homes that have a median value of $107,222. Households are primarily a mix of married-couple families, single-parent families, and singles who live alone. The median age is 36.1 years with a median household income is $49,579. Favorite leisure activities include hunting, bowling, fishing, and attending auto races, country music shows, and ice hockey games. ^ Salt of the Earth-a rural or small-town lifestyle best describes this market. The median age is 40.4 years. Labor force participation is higher than the U.S. level, and unemployment is lower. These residents tend to be employed in the manufacturing, construction,' mining, and agricultural industries. The median household income is $50,538. Households are dominated by married- couple families who live in single-family dwellings- homeownership is high at roughly 86 percent. Residents enjoy fishing, hunting and attending country music concerts and auto races. ^ Home Town- these low-density, settled neighborhoods, located chiefly in the Midwest and South, rarely change. Home Town households are a mix of singles and families. The median age is 33.9 years. Single-family homes predominate in this market with a homeownership rate of 61 percent. The median home value is $68,647. The manufacturing, retail trade, and service industries are the primary sources of employment. Residents enjoy fishing and playing baseball, bingo, backgammon, and video games. ^ Crossroads-young families living in mobile homes typify this household segment, found in small towns throughout the South, Midwest, and West. These growing communities are home to married-couple and single-parent families. The median age is 32 years. Homeownership is at 77 percent- the median home value is $74,804. More than half of the householders live in mobile homes; 36 percent live in single-family dwellings. Employment is chiefly in the manufacturing, construction, retail trade, and service industries. Top segment activities include fishing, attending auto races and playing the lottery. Economics Research Associates Project No. 17886 Page 3 " `i ^ Exurbanites- these affluent households are primarily a mix of empty nesters (40%) and married couples with children (32%). Half of the householders are between the ages of 45 and 64 years. The median age is 44.6 years. The median home value is approximately $302,435; median household income is $88,195. Top leisure activities include boating, hiking, kayaking, photography, and bird-watching. ^ Green Acres-these households live in pastoral settings of developing suburban fringe areas, mainly in the Midwest and South. The median age is 40.5 years. Married couples with and without children comprise most of the households who primarily live in single-family dwellings. This upscale market has a median household income of $63,922 and a median home value of $205,460. For exercise, residents ride their bikes and go water skiing, canoeing, and kayaking. Other preferred activities include bird-watching, power boating, hunting, and attending auto races. ^ Old and Newcomers-these household segments are in transition, populated by those who are either starting their careers or retiring. The proportion of householders in their 20s or aged 75 years or older is higher than at the national level. The median age is 37 years. Spread throughout metropolitan areas of the United States, these neighborhoods have more single-person and shared households than families. Sixty percent of households are occupied by renters; approximately half live in mid-rise or high-rise buildings. Top segment leisure activities include rollerblading, playing golf, gambling at casinos, playing bingo, and attending college ball games. ^ Prosperous Empty Nesters- these neighborhoods are well established, located throughout the United States; approximately one-third live on the eastern seaboard. More than half of the householders are aged 55 or older- the median age is 48.5 years. Forty percent of household types are married couples with no children living at home. Educated and experienced, residents are enjoying the life stage transition from child rearing to retirement. The median household income is $69,834. Residents place a high value on their physical and financial well-being and take an active interest in their homes and communities. They travel extensively, both at home and abroad. Leisure activities include refinishing furniture, playing golf and attending sporting events. ^ Heartland Communities- these neighborhoods can be found primarily in small towns in the Midwest and South. More than 75 percent of the households are single-family dwellings with a median home value of $85,240. Most homes are older, built before 1960. The median age of this household segment is 41.7 years; nearly one-third of the householders are aged 65 years or older. Top activities of this household segment include hunting, fishing, playing bingo, and listening to country music. They also enjoy civic participation and take an interest in local politics. Economics Research Associates Project No. 17886 Page 4 ^ Social Security Set- located in large cities scattered across the United States, these communities are dispersed among business districts and around city parks. Four in ten residents in this household segment are aged 65 years or older; the median age is 45.6 years. The majority of these residents live alone. The service industry provides more than half of the jobs held by residents who work- households subsist on very low, fixed incomes. Most residents rent apartments in low-rent, high-rise buildings. Many rely on public transportation, because more than half of these households do not own a vehicle. ^ College Towns-- education is the key focus of this household segment. College and graduate school enrollment is approximately 41 percent. The median age for this market is 24.4 years, with a high concentration of 18-24-year-olds. Roughly one out of eight residents lives in a dorm on campus. Students in off-campus housing rent low-income apartments. Approximately 31 percent of the households are town residents who live in owner-occupied, single-family dwellings. The median home value is $152,965. ^ Aspiring Young Families-these neighborhoods are located in large, growing metropolitan areas in the South and West, with the highest concentrations in California, Florida, and Texas. Mainly composed of young, married-couple families or single parents with children, the median age for this segment is 30.5 years. Half of the households are owner-occupied, single-family dwellings or townhomes, and half are occupied by renters, many living in newer, multiunit buildings. Top leisure activities for this segment include dining out, dancing, going to the movies, attending professional football games, fishing, weight lifting, and playing basketball. ^ Midland Crowd-approximately 10.8 million people represent Midland Crowd, Community Tapestry's largest market. The median age of 36.9 years matches the U.S. median. Most households are composed of married-couple families-half of these families have children. The median household income is $49,748. Housing developments are generally in rural areas throughout the United States (more village or town than farm)-homeownership is high at 84 percent. Two-thirds of these households live in single-family structures; 28 percent live in mobile homes. ^ Midlife Junction-these household segments are found in suburbs across the country. Approximately half of the households are composed of married-couple families; 31 percent are singles who live alone. In general, these residents are phasing out of their child-rearing years. The median age is 41.1 years with a median household income is $47,683. Nearly two-thirds of households are in single-family structures; most of the remaining dwellings are apartments in multiunit buildings. Economics Research Associates Project No. 17886 Page 5 Table 7: Dubuque County Annual Net Migration Time Period In-flows Out-flows Net Migration 1997-1998 1,283 1,730 -447 1998-1999 1,463 1,769 -306 1999-2000 1,481 1,719 -238 2000-2001 1,392 1,819 -427 2001-2002 1,446 1,649 -203 2002-2003 1,359 1,539 -180 2003-2004 1,396 1,517 -121 2004-2005 1,467 1,524 -57 2005-2006 1,604 1,573 31 2006-2007 1,735 1,665 70 Average 1,463 1,650 ____ -188 Source: IRS, ERA Table 8: Origin of Migrants to Dubuque County Other Time Period In-Migrants Iowa States US Foreign 1997-1998 1,283 414 822 1,236 47 1998-1999 1,463 553 884 1,437 26 1999-2000 1,481 546 900 1,446 35 2000-2001 1,392 508 856 1,364 28 2001-2002 1,446 508 908 1,416 30 2002-2003 1,359 528 818 1,346 13 2003-2004 1,396 511 870 1,381 15 2004-2005 1,467 560 886 1,446 21 2005-2006 1,604 602 979 1,581 23 2006-2007 1,735 596 1,102 1,698 37 CAGR 3.1% 3.7% 3.0% 3.2% -2.4% Source: IRS, ERA Table 9: Percent of Migrants to Dubuque County by AGI Income 1997- 1998- Range 1998 1999 <$10K 3.7% 1.8% $10K- $20K 1.9% 0.0% $20K-$30K 33.8% 31.1% $30K-$40K 58.1 % 60.8% $40K-$50K 2.5% 5.6% $50K+ 0.0% 0.7% Total 100.0% 100.0% Note: Reflects reported flows only Source: IRS, ERA 1999- 2000- 2001- 2002- 2003- 2004- 2005- 2006- 2000 2001 2002 2003 2004 2005 2006 2007 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 3.0% 2.0% 2.1 % 0.0% 1.4% 3.0% 0.0% 6.5% 28.9% 31.5% 24.3% 28.9% 17.9% 24.3% 14.7% 3.9% 64.4% 19.6% 26.1 % 26.3% 67.1 % 63.8% 25.6% 30.8% 1.8% 42.8% 44.7% 41.6% 10.5% 6.9% 56.5% 55.0% 1.9% 4.1 % 2.8% 3.2% 3.1 % 2.0% 3.2% 3.9% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Economics Research Associates Project No. 17886 Page 6 Table 10: Urban versus Rural Origin of Migrants to Dubuque County County Urban vs. Rural 1998-1999 2000-2001 Clinton Rural 14 15 Black Hawk Waterloo-Cedar Falls 83 30 Polk Des Moines 31 25 Story Ames 12 0 Johnson Iowa City 29 32 Linn Cedar Rapids 64 63 Marshall Des Moines 0 0 Clayton Rural 25 29 Jones Rural 19 20 Winneshiek Rural 10 0 Delaware Rural 54 50 Jackson Rural 67 72 Scott Davenport 41 43 Buchanan Rural 0 0 Iowa Flows Rural 189 186 Iowa Flows Urban 260 193 Maricopa, AZ Phoenix & Scottsdale 19 11 Jo Daviess, IL Rural 103 117 Rock Island, IL Davenport/Moline/Rock Island 11 0 Cook, IL Chicago 36 29 Lake, IL Chicago 10 0 Dupage, IL Chicago 13 12 Whiteside, IL Rural 0 0 Winnebago, IL Rockford 0 0 Los Angeles, CA Los Angeles 0 0 San Diego, CA San Diego 0 0 Hennepin, MN Minneapolis 14 14 St. Louis, MO St. Louis 0 0 Milwaukee, WI Milwaukee 0 0 Waukesha, WI Milwaukee 0 0 Grant, WI Rural 85 81 Dane, WI Madison 26 19 Lafayette, WI Rural 0 0 Out-of-State Rural 188 198 Out-of-State Urban 129 85 Note: Only includ es those migrants with known origin from wit hin the US 2002-2003 2004-2005 2006-2007 Average 12 13 18 14 36 42 31 44 35 29 21 28 0 12 15 8 35 49 34 36 68 76 63 67 0 0 0 0 43 39 33 34 15 10 23 17 0 0 0 2 46 49 57 51 75 83 101 80 43 27 43 39 0 0 10 2 191 194 232 198 217 235 207 222 13 10 10 13 120 100 117 111 0 0 0 2 41 67 113 57 0 0 0 2 13 N/A 13 N/A 0 10 0 2 0 17 13 6 0 10 0 2 10 11 10 6 0 N/A N/A N/A 0 0 0 0 0 10 2 0 0 10 2 69 88 88 82 21 21 25 22 0 18 0 4 189 216 205 199 98 146 194 130 Economics Research Associates Project No. 17886 Page 7 Table 11: Estimated Housing Units Jurisdiction 2001 2007 CAGR City of Dubuque 30,139 31,349 0.7% Dubuque County 35,946 39,187 1.4% Jo Daviess County 12,140 13,265 1.5% 10-Counties 139,668 147,008 0.9% Source: Dubuque City Officials, US Census Permit Databa se & ERA Table 12: City of Dubuque Residential Building Permits by Type Annual Residential Segment 2001 2002 2003 2004 2005 2006 2007 Total Average Share Single-Family 66 78 78 86 104 82 76 570 81 42.3% Two-Family 22 34 34 38 38 32 22 220 31 16.3% Multi-Family 21 65 70 331 14 17 39 557 80 41.4% Total 109 177 182 455 156 131 137 1,347 192 100.0% Source: Dubuque City Officials Table 13: Dubuque Apartment Summary Size (sf) ~ Annual Rent Monthly Rent/sf Bedrooms Low High Year Built Low High Low High Pre-2000 1-Bedroom 585 723 $499.38 $687.50 $0.79 $1.14 2-Bedroom 828 1,065 $675 $735 $0.79 $0.80 3-Bedroom 1,232 0 $645 $0 $0.52 N/A Post-2000 1-Bedroom N/A N/A N/A N/A N/A N/A 2-Bedroom 1,033 N/A $726 $876 $0.70 $0.86 3-Bedroom 1,200 N/A $764 $879 $0.64 $0.73 Source: Various Sources Table 14: Estimated Housing Units: Downtown versus Metro Jurisdiction 2000 2008 Change CAGR Downtown Dubuque 1,033 1,063 30 0.4% Dubuque Metro Area 35,505 39,238 3,733 1.3% Downtown Traverse City 218 288 70 4.1% Traverse City Metro Area 69,273 80,494 11,221 1.9% Downtown Iowa City 871 965 94 1.5% Iowa City Metro Area 54,374 63,643 9,269 2.0% Downtown Des Moines 2,933 4,461 1,528 6.2% Des Moines Metro Area 199,393 238,805 39,412 2.3% Downtown Madison 9,075 11,775 2,700 3.8% Madison Metro Area 21,2,662 249,485... .36,823 2.0% Source: ESRI, Dubuque County Assessor Parcel Data & Ci ty Officials Economics Research Associates Project No. 17886 Page 8 Table 15: Urban Market Served Since 2000 Segment Dubuque Traverse City Des Moines Iowa City Madison Downtown Housing Units Built Since 2000 30 70 1,528 250 2,700 MSA Housing Units Built Since 2000 3,733 11,221 39,412 9,269 36,823 Downtown's Share of New MSA Housing 0.8% 0.6% 3.9% 2.7% 7.3% Urban-Lifestyle Households MSA-wide 13.4% 11.2% 28.0% 50.3% 39.9% 2000-2008 Growth in Urban-Lifestyle Households 395 928 9,607 4,113 11,741 Percent of Urban Market Served 7.6% 7.5% 15.9% 6.1 % 23.0% Source: ESRI, US Census & Dubuque County Assessor Table 16: Dubuque County Office Sector Employment Sector 2001 2006 CAGR Broadcasting (except Internet) 0 175 N/A Telecommunications 0 134 N/A Advertising, PR, Related 53 40 -5.7% Scientific Research and Development 0 0 N/A Management, Scientific, Tech. Consulting 29 40 6.4% Computer Programming & Systems 88 63 -6.5% Specialized Design 48 37 -5.1% Architecture, Engineering, Etc. 161 170 1.1% Accounting, Bookkeeping, Etc. 260 426 10.4% Legal Services 237 223 -1.2% Traditional Publishing 750 750 0.0% Medical Office -Dentists, GPs, Outpatient 2,586 2,463 -1.0% Real Estate 197 270 6.5% Insurance & Related 1,127 1,274 2.5% Securities, Commodities, Etc 114 157 6.6% Banks/Credit Intermediation 1,048 1,051 0.1% ISPs, web search, data 0 375 N/A Other Professional, Scientific Services 142 154 1.6% Total 6,840 7,800 2.7% Source: US Census, County Business Patterns a nd ERA Economics Research Associates Project No. 17886 Page 9 Table 17: Dubuque County Office Sector Location Quotient Sector _ __ _. Broadcasting (exceptlnternet) Telecommunications Advertising, PR, Related Scientific Research and Development Management, Scientific, Tech. Consulting Computer Programming & Systems Specialized Design Architecture, Engineering, Etc. Accounting, Bookkeeping, Etc. Legal Services Traditional Publishing Medical Office -Dentists, GPs, Outpatient Real Estate Insurance & Related Securities, Commodities, Etc Banks/Credit Intermediation ISPs, web search, data Other Professional, Scientific Services Total Source: US Census, County Business Patterns and ERA 2006 1.89 0.30 0.17 0.00 0.08 0.15 0.55 0.41 0.72 0.43 2.24 1.18 0.51 0.95 0.30 0.67 1.88 0.53 0.75 CAGR N/A N/A -3.4% N/A 3.3% -5.7% -4.0% 0.0% 4.9% -3.8% 1.0% -5.6% 5.1% 2.0% 3.0% -3.5% N/A -3.7% -1.6% Table 18: Dubuque County Wages by Sector __ _ -CAGR 01- Sector 2001 2003 2006 06 Forestry, fishing, hunting, and agriculture support $20,345 $20,991 $22,022 1.6% Construction $38,357 $39,529 $43,148 2.4% Manufacturing $34,016 $39,252 $41,082 3.8% Wholesale trade $32,867 $36,059 $36,602 2.2% Retail trade $17,641 $18,915 $19,927 2.5% Transportation & warehousing $27,688 $32,856 $37,405 6.2% Information $38,657 $37,683 $50,510 5.5% Finance & insurance $32,422 $35,049 $43,124 5.9% Real estate & rental & leasing $18,851 $23,821 $25,658 6.4% Professional, scientific & technical services $32,847 $36,322 $42,558 5.3% Management of companies & enterprises $42,072 $65,956 $62,629 8.3% Admin, support, waste mgt, remediation services $17,959 $21,091 $23,192 5.2% Educational services $12,204 $15,566 $16,201 5.8% Health care and social assistance $31,289 $33,909 $35,979 2.8% Arts, entertainment & recreation $16,308 $17,052 $16,472 0.2% Accommodation & food services $8,601 $9,071 $9,495 2.0% Other services (except public administration) $15,562 $18,279 $17,683 2.6% Auxiliaries (exec. corporate, subsidiary & regional mgt) $0 $7,800 $34,375 N/A Total $25,621 $28,352 $31,212 4.0% Source: US Census, County Business Patterns 2001 N/A N/A 0.20 0.00 0.06 0.20 0.68 0.41 0.56 0.52 2.13 1.57 0.40 0.86 0.2 5 0.79 N/A 0.64 0.81 Economics Research Associates Project No. 17886 Page 10 ... • . ' ~ I>r' Table 19: Share of Dubuque County Employment by Industry Sector Sector 2001 2003 2006 CAGR 01-06 Forestry, fishing, hunting, and agriculture support 0.2% 0.2% 0.2% -5.9% Mining 0.1 % 0.1 % 0.1 % -1.2% Utilities 0.4% 0.8% 0.3% -1.2% Construction 3,6% 3.8%'' 39°10 1.3% Manufacturing 21.5% 19.3% 19.0% -2.5% Wholesale trade 4.7% 4.6% 4.8% 0.5% Retail trade 13.9% 13.5% 13.0% -1.3% Transportation & warehousing 2.0% 3.4% 4.0% 15.1% Information 4.2% 4.2% 3.4% -4.1% Finance & insurance 4J% 5.1% 4.8% 0.4°l0 Real estate & rental & leasing 0.8% 0.9% 0.9% 2.5% Professional, scientific & technical services 2.1% 2.1% 2.3% 1.5% Management of companies & enterprises 0.5% 0.5°{0 2.2% 35.6% Admin, support, waste mgt, remediation services 4.2% 3.4% 3.7% -2.7% Educational services 6.7% 5.4% 5.4% -4.3% Health care and social assistance 13.4% 14.5% 13.8% 0.6% Arts, entertainment & recreation 3.1 % 3.2% 3.4% 2.1 Accommodation & food services 8.0% 8.9% 8.6% 1.4% Other services (except public administration) 5.5% 5.4% 6.2% 2.3% Auxiliaries (exec. corporate, subsidiary & regional mgt) 0.4% 0.0% 0.0% -33.5% Total 100.0% 100.0% 100.0% 0.0% Source: US Census, County Business Patterns Economics Research Associates Project No. 17886 Page 11 Figure 1: Urban Housing Gap Madison bw a City Des Moines Traverse City Dubuque ^ %Urban-Lifestyle Households MSA- w ide ?_ , Dow ntow n's Share of New MSA Housing 0% 10% 20% 30% 40% 50% 60% Figure 2: Age of Metro versus Downtown Housing Madison -- bw a City Des Moines 'I Median Year Housing Buitt--MSA I p Median Year Housing Buitt--Dow ntow n Economics Research Associates Project No. 17886 Page 12 Figure 3: Educational Attainment Point Shift 1990-2006 10.0% 5.0 0.0 ^ Less than High School High school graduate (includes equivalency) ^ Some College -5.0 -10.0 -15.0 Source: US Census and ERA ~ Associate's or Bachelor's Degree ^ Graduate or professional degree Figure 4: City Population by Age Cohort 1 a.o°i ----- 16.0% 14.0 12.0° 10.0% 8.0% 6.0% 4.0% 2.0°/ 0.0 Source: ESRI 2000 ^ 2007 Economics Research Associates Project No. 17886 Page 13 Age 0-4 S-9 10- 15- 25- 35- 45- 55- 65- 75- 14 24 34 44 54 64 74 84 Figure 5: Distribution of Families by Type ~el~tiv~ly Fevv~r F~r~~ili~s 1f~ifih Kids Percent distribution of HHs by type: 1990 and 2010 (projected) Families w/children 1.0% Male householder 2.6% 1.7% 1.6% 5.8% Female _ - ` 7.0% householder 7.6% 6.3% 26.7% Married couple 118.0% ° 26.7 /° 20.1 ° o Families w/o children 5.1% Other 5.2% 5.7% 8.3% 29.4% Married couple ~ -_-^ - ~~' 27.3%° 28.4 /o - 31.5% Nonfamilv 4.2% 7.2% Other ~- 5.3% 5.4% Source: US Census and ERA o Dubuque 1990 ^ Dubuque 2010 ® US 1990 ^ US 2010 Economics Research Associates Project No. 17886 Page 14 Figure 6: 2007 Percent of Households by Income $zoo,ooo+ $150,000 - $199,999 $100,000 - $149,999 $75,000 - $99,999 $50,000 - $74,999 $35,000 - $49,999 $25,000 - $34,999 $15,000 - $24,999 <$15,000 0.0% Source: ESRI 5.0% 10.0 % 15.0% 20.0% 25.0 % 30.0% Figure 7: City of Dubuque Pull Factors by Retail Type 2.0 1.8 1.6 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0 e a`acay cc~o ~~°~yy aca~y° ~`°~ey `,\Gea o\aya QQaca \`'r`c~ ~°'~a a\cAC~ acaO ~°°a a~or °a~,c1 5e ~'a P Jac ~` ~ e t~ mac Source: Iowa Department of Revenue 10-Counties L1 Jo Daviess County Dubuque County ^ City of Dubuque ^ 2000 2007 Economics Research Associates Project No. 17886 Page 15 Figure 8: Dubuque Housing by Year of Construction 12o.o°r° 100.0% 80.0% 60.0% 40.0% 20.0% o ~n O o m o O 01 N O V O CO o0 O Q7 O m O O N ~ o O N ~t C4 00 N ° _ rn w rn rn rn d Figure 9: Dubuque Housing by Assessed Value 35.0% 30.0% 25 0% . 20.0% 15.0% _ t '_- 10.0% 5.0% 0.0% ~~ - p ~ O O O O O O y to fA ~ O ~ ~ ~ ~ O N N O O p Y Y Y ~ ~ ~ ~ ~ ~ O In 117 I~ ~ ~ O O Y O ~ Y O N Y O N Y O M fA 6? V3 fA U3 Source: Dubuque County Assessor ^ % Fbmes by Year Built [~ % Condos by Year Built ^ % Homes by Assessed Value ~ % Condos by Assessed Value Economics Research Associates Project No. 17886 Page 16 Figure 10: Dubuque Housing Assessed Value per Square Foot so.o°i° 50.0% 40.0% ^ % Horres by Assessed Value/sf 30.0% Condos by Assessed Value/sf 20.0% 10.0% L -i ~ I °°o EPr ° °v r o °o N N V EA EA fR fA fR n °o V fA 6? fR r EA Source: Dubuque County Assessor Figure 11: Relationship between Total Home Value and Total Living Space (square feet) $1,000,000- Type of Housing Unit O Condominium ~~ Single FemOy Home ---Condominium Single Fam7y Home ` 5800,000- j c~ CJ Op ~t~ O 7 5600,000' O p ~Cr~ j O o O b O OHO ~ OD ~ s4oo,o00- ~ ~U~~ 6 ~ O $200,000- ll,,' .. ,".,~a,'~ ~.' 4 O 50- o:; :~;=i ~ i i r 0 7 ,000 2,000 3,000 4,000 5,000 6,000 Total Living Space Economics Research Associates Project No. 17886 Page 17 Figure 12: Percent of Office Sector Establishments by Size 60.0% --_.___. ................ ................ ._______ 50.0% _. 40.0% 30.0% 20.0 10.0 0.0% '1-4' 'S-9' '10-19' '20-49' '50.99' '100-249' 250+ Source: County Business Patterns ^ 2001 2003 ®2006 Figure 13: Growth in Office Est. by Size (2001-2006) 3.5% 3.0% 2.5°/ 2.0 1.5% 1.0 0.5°/ 0.0 '1-4' 'S-9' '10-19' '20-49' 'S0-99' '100-249' 250+ Source: County Business Pattern ~ CAGR Economics Research Associates Project No. 17886 Page 18 ®'. . Case Studies Warehouse District-Cleveland, Ohio Cleveland's Warehouse District encompasses 43 acres bound by Front Street to the north, Superior Avenue to the south, West 3rd Street to the east, and 10th Street to the west. The area was originally settled as a residential community, although transitioned to become Cleveland's primary commercial center following the Civil War- several prominent buildings remain from this era. In 1982, the district was designated a National Historic Landmark and has since transformed into a vibrant neighborhood of art galleries, restaurants, offices, specialty retail, and loft-style housing. The Warehouse District presently includes some 1,700 residential units, a mix of 1, 2, and 3 bedrooms; 2,700 square feet of retail; and 1.3 million square feet of office uses. Warehouse District redevelopment began in the 1970s, beginning with renovation of the Western Reserve Building by a local department store company. Shortly thereafter, the Cleveland Landmarks Commission developed a Comprehensive Plan for the Warehouse District and in 1980, the Historic Warehouse District Development Corporation 1HWDDC) was born. HWDDC is a local nonprofit comprised of downtown business interests and architects. One of HWDDC's fist projects in 1982 was to have the neighborhood declared a local Landmark District. This was followed soon after by National Register Historic District designation by the US Secretary of the Interior. Throughout the 1980s, redevelopment activities in the Warehouse District accelerated. In response, the Cleveland Landmarks Commission adopted the 'Historic Warehouse District Plan Concepts and Design Guidelines', a framework for encouraging adaptive reuse and establishing design review standards. Although redevelopment of Cleveland's Warehouse District was initiated by the private sector, the City has been an active supporter through financing and administrative measures. ERA has outlined below some of the steps taken by the City to facilitate Warehouse District redevelopment: ^ Financed and managed Local Historic District planning efforts-this ultimately made redevelopment activities eligible for Historic Tax Credits. It also allowed for greater control over redevelopment through a design review process; ^ Undertook initial streetscape enhancements; ^ Established an Economic Restructuring Plan to allow residential uses on upper floors of Warehouse District structures; Economics Research Associates Project No. 17886 Page 19 ^ Provided gap financing to match private sector investment (about $15-$20,000 per unit). Gap financing is now the responsibility of a civic non-profit committed to downtown housing development; ^ Adopted business assistance programs related to storefront renovation. Bonds, grants (Urban Development Action Grant (UDAG); Community Development Block Grants and Historic Tax Credits have been the primary financing mechanisms for Warehouse District redevelopment. HUD 221 (D) 4 loans have also helped finance the development of multifamily rentals. According to the Warehouse District Development Corporation, investment in the Warehouse District over the past thirty years has totaled roughly $450 million- 10 to 15% of this has been from the public sector. Between 1982 and 2005, aggregate property value within Cleveland's Warehouse District increased from $152 million to $418 million. Schlitz Park-Milwaukee, Wisconsin Schlitz Park is a 40-acre office park, an adaptive reuse of the Schlitz Brewery complex located in downtown Milwaukee. Sited along the Milwaukee River, the 110-year old brewery complex comprised 13 buildings ranging from grain silos to administrative buildings built between 1860 and 1950- the entire complex contained some 2.3 million square feet of space. Following redevelopment, the complex contains nearly 1.5 million square feet of space, 75% of which is office space. Another 12% is warehousing and retail space, with the remaining 13% dedicated to educational uses. Redevelopment of the abandoned complex began with its purchase in 1983 by Brewery Works, a developer initially attracted by the site's riverfront location. Renovation began a year later and was phased over a period of roughly seven years on a building by building basis- Brewery Works would identify an individual building and renovate it to degree that a tenant could be secured. Upon securing a tenant through along-term lease, renovations were then completed to suit the needs of that specific tenant. The entire project was completed in 1994. The public sector also played an integral role in Schlitz Park redevelopment through financing, targeted infrastructure improvements, as well as through collaboration with the developer on the Riverwalk project. In particular, the City supported redevelopment efforts in the following ways: Economics Research Associates Project No. 17886 Page 20 ,~ ^ Funded half of the $750,000 Riverwalk, aquarter-mile boardwalk/park along the Schlitz Park site. The other half of the Riverwalk was funded by Brewery Works. ^ Established Tax Increment Finance Districts to fund infrastructure and other improvements. ^ Provided a series of subordinated loans to the developer- loans were structured so payments were deferred until the office buildings were leased. ^ In recent years, the City provided grants and loans to the new Manpower headquarters located adjacent to Schlitz Park, as well as built a new parking ramp for the development. Financing of Schlitz Park was a combination of public and private sources. According to the Urban Land Institute, developer equity in the project was roughly $4.2 million. TIF loans, grants, industrial revenue bonds, first mortgages and other funds comprised another $82.3 million. City officials report that the Schlitz Park TIF over its eleven year life achieved an incremental value of $37.52 million. The adjacent Schlitz RiverCenter TIF achieved an incremental value of $32,500,000. Old Market-Omaha, Nebraska Old Market is a renovated, 15-block warehouse district on the edge of downtown Omaha. The district is bound by the Missouri River to the east; Dodge Street to the north; Levinworth Street to the west; and 13th Street to the south. Within the greater warehousing district is a 4-block historic district on the National Register. According to the local business association, Old Market is presently location to 30 restaurants, 13 pubs & taverns, 10 art galleries, 6 coffee shops, in addition to salons and specialty retail. Old Market is also the site of year-round events and activities including farmers' markets, music and firework displays. Redevelopment of the Old Market began in the late 1960's, a movement started by a local family that owned several area properties. Their vision for the area was to create a local artist's colony- redevelopment efforts began with conversions of their existing warehouses into artist lofts and galleries. In the early years of redevelopment, financial support by the City was minimal. However, the Planning Director at the time showed support for redevelopment through 1) building and zoning amendments; 2) targeted business recruitment; and 3) development of local plans to complement the family's vision. Over the next forty years, the City of Omaha became more engaged in Old Market redevelopment through the establishment of Tax Increment Finance Districts, and City-sponsored surveys to designate the Old Market as a local historic district. Most importantly, however, the City has Economics Research Associates Project No. 17886 Page 21 sponsored several major projects surrounding Old Market that have been catalysts for district redevelopment: ^ Construction of the Gene Leahy Mall-a 9.6-acre urban park adjacent to the Old Market featuring a lagoon, walking paths, playgrounds and horseshoe pits. This project required public acquisition and demolition of several acres of vacant, older buildings. ^ Construction of Heartland of America Park, a 31-acre lakefront park that connects the Gene Leahy Mall to the riverfront. Heartland of America Park features fountains, live concerts and gondola rides. ^ Renovation of the Union Station building into the Durham Western Heritage Museum. This Art Deco structure located just south of Old Market was donated to the City by the Union Pacific Railroad in 1973. The building is listed on the National Register, and is also a designated an Omaha Landmark. Old Town-Wichita, Kansas Old Town is aturn-of-the-century warehousing district located in downtown Wichita. The district comprises an area of roughly 40 acres bound to the south by Douglas Avenue, 3'd Street to the north, Washington Avenue to the east, and an elevated rail corridor to the west. The district currently comprises a mix of locally-owned retail, bars, restaurants, movie theaters, live-performance venues, offices, two hotels and 315 homes. Old Town also contains two large public plazas that host regular events, festivals, and concerts. Redevelopment of this worn warehousing area into a thriving arts, entertainment and residential district has been a combined effort of the public and private sectors. Beginning in the 1970s, a movement amongst community leaders and citizens, including the Old Town Association, began advocating for district redevelopment- several plans were developed as a combined effort of the City, key stakeholders and community members. However, in 1990, the discovery of polluted groundwater brought Old Town redevelopment efforts to a standstill. In an effort to stimulate redevelopment, the City took the lead in site remediation, relieving property owners of this financial burden. Additional public sector activities key to redevelopment have included: ^ Preparation of a detailed implementation plan for the establishment of a redevelopment district; ^ Establishment of an Old Town Parking District and two Tax Increment Finance Districts to secure funding for public infrastructure improvements; Economics Research Associates Project No. 17886 Page 22 ~:: ^ Establishment of financial incentives to assist building owners with rehabilitation; ^ Creation of overlay zoning districts to facilitate area mixed-use development; ^ Public acquisition and redevelopment of a three-story warehouse in the center of Old Town in partnership with a local developer-this project served as a catalyst for further Old Town redevelopment. ^ A $4 million contribution to implement physical improvements including pedestrian-level lighting, new parking facilities, roadway surface improvements and the rehabilitation of an existing building to house a farmer's market. The public sector's role in Old Town continues to be the construction and maintenance of infrastructure in the district- all parking has been constructed by the City and is free. The Parking District is funded by local property owners through a monthly fee to the district based upon their individual parking needs. Maintenance of landscaping, hardscaping as well as cleaning and repair of public infrastructure is the responsibility of the City of Wichita. Tax Increment Financing has been critical to Old Town redevelopment efforts. According to city documents, total public investment in Old Town between 1993 and 2008 in the form of TIF bonds, general obligation bonds, special assessments, and other public funds has totaled roughly $40 million. Estimates by the City place property value increments in Old Town during this time at $65 million. Economics Research Associates Project No. 17886 Page 23 Economics Research Associates Final Report Financial Analysis Summary Historic Millwork District Masterplan Prepared for: Cuningham Group City of Dubuque Submitted by: Economics Research Associates January 27, 2009 ERA Project No. 17886 This study was funded by a grant from the US Department of Commerce, Economic Development Administration 20 E. Jackson Boulevard Suite 1200 Chicago, IL 60604 312.427.3855 FAX 312.427.3660 www.econres.com Los Angeles San Francisco San Diego Chicago Washington DC London New York ERA AECQM Introduction As part of work efforts related to the Dubuque Historic Millwork District Masterplan, ERA was asked to evaluate the financial implications of the redevelopment concept. The approach was built around a discounted cash flow (DCF) analysis, which evaluates: ^ A proposed renovation program (new apartment units, office space and retail space) ^ A phasing plan for the project ^ Assumptions for achievable rents and operating expenses over the holding period for the asset ^ Renovation costs ^ Financing (debt service) costs over the asset holding period ^ Investment requirements for streets, parking, and infrastructure ^ The value of federal and state historic tax credits, which are assumed to reduce the debt service requirement that would otherwise be absorbed by the developer. ^ A terminal value, which assumes the sale of the project at the end of a set holding period, adjusting for payment of remaining debt service and costs of sale. The DCF approach looks at all of these factors over amulti-year development period from a developer's perspective, evaluating the resulting stream of cashflows to identify the balance of revenues and costs that achieve two alternative minimum rates of return: ^ Unleveraged return of 10%- Assumes a 100% equity investment by the developer ^ Leveraged return of 15% -Factoring in the positive impact of debt service and financial leverage While the second approach assumes that a minimum rate of return of at least 15% is "feasible", as every developer's threshold for return and holding period is different, not all developers will agree with the 15% hurdle rate. In general, ERA experience has shown that renovation projects of this scale and complexity require developers with patient capital and along-term perspective. As important, the approach looks at likely public sector infrastructure investment requirements in relation to resulting fiscal benefits, to clarify the extent to which the public side of the project can be justified. The essence of this approach is simple; for a project to be "feasible" in practical terms, both the public and private sides need to be in balance. Page 1 ERA AECOM Policy /Planning Assumptions Key framework assumptions that guided the analysis include: ^ Although the warehouse district project includes a total of four identified phases of future development, covering both renovation and new construction, the DCF approach focuses entirely on renovated space, with focused analysis of an identified phase 1 program that includes apartments, retail space, and office space. ^ The market analysis process identified a small but relevant market opportunity for urban housing in Dubuque. Considerations relate to market scale (i.e. is it sufficient to keep four warehouse district property owners satiated?) and depth (i.e. support for a residential element that is 100% loft style apartments?). ^ Given that every developer has different expectations for return and timing, ERA has assumed that the project is renovated by one ownership entity, who makes initial investments in the project, generates operating income and pays debt service over the holding period, and sells the asset at the end of the holding period; this stream of income is used to calculate the project rate of return. This is an important assumption, given that there are currently four primary property owners in the district, each with different costs of capital and investment horizons, and return expectations. This assumption is based entirely on ERA experience with similar projects. ^ The project will require considerable reinvestment for streets, infrastructure, parking, and streetscape improvements. Assessments by City Staff and the Cuningham Group identified total "public" costs of approximately $24 million over three phases, with afirst-phase increment of about $7 million. The approach assumes that the developer will be unable to internally absorb all of these costs, meaning that the City of Dubuque will need to find ways to support and justify a share of these costs. ^ The approach does not specifically factor in the potential impact of recent announcements by IBM that they will locate a 1,300-position information service center in downtown Dubuque. This expansion should bode well for the warehouse district, to the extent that necessary public and private improvements can be made in a timely fashion. The approach assumes that the federal and state historic tax credits are used in the analysis. The approach assumes a 20% federal credit and a 25% state credit, with eligible construction costs at 95% of total construction costs. The tax credits are assumed to be syndicated, with the federal credits converting at $0.90 on the dollar and the state credit at $0.50 on the dollar. Importantly, the project is dependent on at least two credits, so if the state historic credit is unavailable, other incentives will need to fill the gap. These include new markets tax credits, low income housing Page 2 ERA AEGOM credits, and other HUD loan products which offer credit enhancement. The program does not include the incremental benefit of the warehouse district being defined as an Iowa Cultural or Entertainment District, which would justify additional state historic credit support. The project also does not specifically account for the impact of carbon / brownfield credits /grants. From ERA experience with other warehouse district projects, all of these incentive approaches may be needed to round out the project's financial base. Absorption /Development Phasing The proposed Phase 1 program includes the following program elements: ^ 202 loft style apartments, assuming an average gross unit size of about 1,400 sq. ft. This is a gross space factor, and includes living space as well as public space per unit. ^ 92,300 sq. ft. of office and retail space ^ 89 internal parking spaces Proposed program absorption is estimated at three years, with one year of construction. Income and Expense Assumptions All income and expense numbers are current values, and are inflated to future years of occurrence at an annual rate of 3%: ^ Retail - $10 per sq. ft, less a vacancy allowance of 5%. Operating expenses of $4 per sq. ft. are assumed. ^ Office - $10 per sq. ft, less a vacancy allowance of 5%. Operating expenses of $4 per sq. ft. are assumed. ^ Residential: $0.65 per sq. ft on an average 1,400-sq. ft. unit, for a monthly rent of $910, less a 5% vacancy allowance. Operating expenses are assumed at 33% of effective gross revenue, or approximately $3,500 per unit. ^ No revenue from interior parking is assumed Project Construction Costs Preliminary order-of-magnitude construction cost estimates were developed with support from Cuningham Group, Jeff Morton, city staff, and property owners, based on walk-through's of a sample of buildings, developer input, and team experience. The preliminary construction cost estimates for phase 1 include renovations to interior space, building facades and roofs, and below grade parking. Cost factors, in current 2008 dollars, include: Page 3 ERA AECOM ^ Building exterior shell renovation: $2.5 million ^ Building roof renovation: $790,100 ^ Interior parking: $1,068,000 ^ Retail /Office Interior: $9.2 million ^ Residential Interior: $20.2 million ^ Soft costs: 23% of hard costs, or $7.8 million ^ Contingency: 10% of hard costs, or $3.4 million ^ Total phase 1 project costs are estimated at $45.1 million, with annual inflation at 3%. The program also includes neighborhood infrastructure, streetscape, and public parking improvements. Cost estimates, in current 2008 dollars, include: ^ Street reconstruction: $3.9 million ^ streetscape improvements: $621,500 ^ Phase 1 structured parking: $2.5 million ^ Total phase 1 infrastructure cost of $7.1 million are estimated The infrastructure element of the project is complicated by the existence of private streets in the district and existing infrastructure systems that, in some cases, date back before 1900. ERA views parking is the key variable, with the existing buildings having limited capacity for internal parking, pointing to the need for additional street parking, as well as parking lots and structures. The extent of public parking requirements, related costs, and the public sector's share of costs will be influenced by overall parking policy objectives defined by city council. Project Financing Scenarios The approach assumes three tiers of development financing: ^ 100% equity: A simplistic theoretical approach, with the developer investing 100% of project costs, owning the asset for a set holding period, and selling the property at the end of the holding period (15 years) using a terminal capitalization rate (8.5%). ^ Traditional debt financing: Atypical market approach, with 25% equity / 75% debt financing, assuming 8% monthly interest and a 20-year term. The project is developed, maintained over a set holding period (15 years), and then sold at the end of the holding period, less costs of outstanding debt and costs of sale, using a terminal capitalization rate (8.5%). ^ Debt financing plus federal and state historic tax credits: This approach follows from above, with the exception that the project benefits from approximately $13.5 million in federal and state Page 4 ERA AECOM historic tax credit equity, which reduces the amount of debt that the developer would have to cover from operating income, improving the projects rate of return. Development Implications The Phase 1 financial analysis yields several significant results: ^ Federal and state historic tax credits are essential for project viability. Based on noted assumptions, and with both historic tax credits, the project generates an internal rate of return (IRR) of 15.5% over the 15 year period. While the 15.5% IRR meets ERA's minimum threshold for feasibility, there are several caveats: - The majority of the return on investment is on the back side of the project, including the terminal capitalized value. Also, initial year cash flows are projected to be negative for years 1 through 4, with positive cash flow building from there. Given these realities, patient capital and along-term perspective are prerequisites for project success. - Project feasibility is equally dependant on infrastructure improvements, which are discussed on the next page. - The retail and office elements are a challenge, in that while downtown rents are in the $8 to $12 per sq. ft. range, commercial renovation costs are falling in the $120 per sq. ft. range, which would be comparable to new construction. If market reaction to these elements proves to be modest, delayed investment could improve near-term project performance. ^ Obviously, since the near-term status of state historic tax credits is uncertain, the development may need to access alternative tax credit options, including new markets credits, and / or low income housing credits to sustain the current IRR. Other options include the use of HUD Section 202 loans, which allow specific projects to benefit from below-market interest rates (6% versus 8%, for example). ^ Given that the analysis is preliminary in nature (reflected by a contingency of 10%) it is difficult to precisely define the financial benefits of district energy and other sustainable /energy saving elements. In principle, these programs offer the potential to reduce operating expenses, either for the developer (which would enhance rate of return), or the renter (which would enhance marketability and competitive positioning, offset by a marginal increase in development costs. However, since the long-term expense of building operation will outweigh one-time costs, these elements need to be further explored. ^ The approach assumes that revenue and cost inflation at 3%. Developers would need to assume effective revenue growth at a rate faster than cost growth. Factoring in such a premium would improve project feasibility. As well, the approach does not assume growth in value at a Page 5 ERA AECOM faster rate in the future. Accelerated value growth becomes realistic if the development team and city agree to a firm upfront investment basis in the project. ^ The approach assumes a conservative three-year absorption period for Phase 1. To the extent that demand occurs faster than projected, project financial performance would improve. ^ From a retail standpoint, the ability to attract one or more anchor tenants (grocery /restaurants) or national chains (Starbucks) will be supportive of project feasibility. Anchor tenants will support smaller adjacent retailers, and national chains will tolerate higher rents compared to locally owned stores. ^ While the analysis assumes a balanced mix of retail and office use, the project could initially support a larger share of office and service functions, which in some cases could be supportive of higher rents. ^ Bank lending for the project will be tied initially to credit worthiness of the development team (i.e. their ability to commit equity to the project). Also, the presence of credit-worthy retail and office tenants who can commit to pre-lease a percentage of the commercial spaces will also impact bank lending capacity. To the extent that banks are unwilling /unable to lend for the project, additional offsetting gap financing would be required. ^ All rate of return estimates are on a pre-tax basis. Infrastructure Implications As noted above, Phase 1 includes a requirement for up to $7 million in infrastructure improvements for infrastructure, streetscape, and parking. These improvements are an essential element of the renovation program, and their cost and viability has to be factored into the overall project. To place the infrastructure improvements in perspective, ERA evaluated likely project fiscal benefits, primarily property tax payments to local taxing jurisdictions linked to supportable tax increment financing (TIF) capacity. The approach includes the following assumptions: ^ Current building valuations that range from $3 to $8 per sq. ft. for the majority of existing un- renovated space, according to assessment records, with an overall average of about $5.77 per sq. ft. on an inventory of about 1 million sq. ft. ^ An assessed property value "as renovated" that starts at about $40 per sq. ft. in 2008, which is based on discussions with city staff and the local property assessor regarding achievable renovated building values. Renovated values are assumed to grow at 3% per year. Assuming $5.77 per sq. ft. as the base year value, the analysis will use only the growth in increment above the base value for calculation of supportable TIF proceeds. Page 6 ERA AECCaM ^ Using the noted phasing plan, the Phase 1 project could result in a renovated inventory of about 401,800 sq. ft. by Year 5, with a renovated value of about $15.9 million. Property tax rates of 34.44676 per $1000 of value, and a commercial rollback of 99.73% are used to estimate incremental property tax proceeds, allowing for the two year lag between project completion and tax bill payment. Using these assumptions, the defined phase 1 project could generate incremental property taxes of about $194,600 by Year 4 of development, and about $547,800 by year 7 of development, which would be a conservative stabilized occupancy year for Phase 1 from a tax perspective. ^ Assuming stabilized year tax increment of $547,800 in year seven, EFiA estimates that TIF revenue bond debt of approximately $7.5 million could be supported, which assumes a 2% semi- annual interest rate and a 20-year bond, with two payments per year. ^ Importantly, the City of Dubuque has already committed capital improvement dollars to the district, programmed between 2009 and 2013 for improvements to streets, stormwater and sanitary systems, water main replacement, streetscape, fiber optics, and related improvements. The total value of public investment currently committed to the project from funding sources other than TIF is about $4.8 million through 2013. Overall the fiscal implications of the project appear in line with overall investment. Assuming an overall project value of about $52.2 million and a potential public share of about $7.1 million, every dollar of public investment would leverage more than six dollars in private investment, which has traditionally been a realistic ratio. Considerations include: ^ While Phase 1 public and private shares of investment seem appropriate, public investment requirements for Phase 2 are more challenging, with about $10 million in improvements identified, including structured parking - a specific challenge. ^ Although phase 1 includes a modest parking structure, related TIF revenue support for this element may lag behind a developer's need for these additional spaces. This reality reinforces the need for a deliberate parking strategy that considers the Warehouse District, the port, and the downtown area. ^ The proposed Phase 1 project does not include a condominium component, which means that all program elements will incur property taxes at the lower commercial rollback rate (99.73%). In future phases, as condominium ownership becomes a more significant reality, there will be a relevant impact on property tax proceeds due to the significant residential rollback (44.0803%). ^ The TIF approach assumes that all taxing jurisdictions participate in the TIF. Page 7 ERA AEC~M General & Limiting Conditions Every reasonable effort has been made to ensure that the data contained in this report are accurate as of the date of this study; however, factors exist that are outside the control of Economics Research Associates and that may affect the estimates and/or projections noted herein. This study is based on estimates, assumptions and other information developed by Economics Research Associates from its independent research effort, general knowledge of the industry, and information provided by and consultations with the client and the client's representatives. No responsibility is assumed for inaccuracies in reporting by the client, the client's agent and representatives, or any other data source used in preparing or presenting this study. This report is based on information that was current as of January. 2009 and Economics Research Associates has not undertaken any update of its research effort since such date. Because future events and circumstances, many of which are not known as of the date of this study, may affect the estimates contained therein, no warranty or representation is made by Economics Research Associates that any of the projected values or results contained in this study will actually be achieved Possession of this study does not carry with it the right of publication thereof or to use the name of 'Economics Research Associates' in any manner without first obtaining the prior written consent of Economics Research Associates. No abstracting, excerpting or summarization of this study may be made without first obtaining the prior written consent of Economics Research Associates. This report is not to be used in conjunction with any public or private offering of securities, debt, equity, or other similar purpose where it may be relied upon to any degree by any person other than the client, nor is any third party entitled to rely upon this report, without first obtaining the prior written consent of Economics Research Associates. This study may not be used for purposes other than that for which it is prepared or for which prior written consent has first been obtained from Economics Research Associates. This study is qualified in its entirety by, and should be considered in light of, these limitations, conditions and considerations. Page 8