APA Florida 2011 Conference

Universities and Economic Development: Placemaking Partnerships

September 9, 2011

0121

About Tony Brown

• Executive Director, Riviera Beach Community Redevelopment Agency:

– Florida’s diverse waterfront community

• President, T. Brown Consulting Group

– Community development finance consulting

• As Director of the Community Development Financial Institutions (CDFI) Fund:

– Successfully implemented the New Markets Tax Credit Program

• As President & CEO of the Uptown Consortium:

– Created a $100 million private loan fund

– Fund sparked over $400 million in urban redevelopment in five years.

• Institutions as anchors– Vine Street

(University) & Burnet Avenue (Hospital)

• Establish a shared Community Vision

• Money & Finance

3

MLK Drive

Vine St.

HamptonInn

Restaurant

Bank withRestaurant

below

Key Talking Points

Burnet Avenue

Burnet AvenueAvondale Neighborhood

• Universities and hospitals are capital intensive

• Growth into the community can be catalytic

• Don’t creep or encroach: – Invest & Reap– Plan & Approach

Cincinnati Children’s Hospital and the Avondale neighborhood

Cincinnati Children’s Hospital led renaissance of minority business district

• Land use Plans by Goody Clancy– Burnet Avenue– Vine Street

• Strategies to foster economic development

5

BeforeAfter

Principles of Revitalization

• Extend benefits to entire neighborhood

• Introduce housing, office and other uses to support pedestrian-friendly uses

• Create a unique identity that celebrates community and culture

Burnet & Northern AvenuesAvondale Neighborhood

“Weaving Together Community”– Recalls African tradition of textiles and

weaving.

– Represents the integration of the institutional area to the south with the residential area to the north, creating a cohesive neighborhood.

– Signifies the mix of people with diverse cultures, backgrounds, and lifestyles that contribute to the area’s energy and vitality.

– Symbolizes community unity and strength.

Burnet Avenue Streetscape

Public SpacesPublic Spaces

Burnet & Northern AvenuesAvondale Neighborhood

Before . . .

Land Acquisition and Development: $25 million leveraging $85 million development

Burnet AvenueWeave Together Community

Burnet AvenueWeave Together Community

Cincinnati Herald Building – hospital is anchor tenant

Burnet AvenueWeave Together Community

Weave theme became an architectural feature

Burnet AvenueWeave Together Community

Weave theme became an architectural feature

Short Vine StreetCorryville Neighborhood

• University of Cincinnati:– Vested over $100

million from Endowment in neighborhoods

– Empowered community groups to develop neighborhoods

– Created Uptown Consortium

University of Cincinnati is city’s largest employer. Campus borders 6 neighborhoods

Short Vine StreetCorryville Neighborhood

• Short Vine: – Borders

University’s eastern campus

– High Crime– Vacant Store

fronts – Unsafe for

university students

University of Cincinnati is city’s largest employer. Campus borders 6 neighborhoods

Short Vine

2601 Vine(Bogart’s)

3000 Vine(Hampton Inn)

2900 Vine(Benchmark)

2600 Vine(Martino’s)

SHORT VINEUniversity Village Plan

E

N S

W

Univ Plaza(Kroger)

2801 Vine(Shiel School)

$50 million to Reclaim Area as a Regional Draw

Barbell Strategy: University Plaza

Neighborhood Retail Zone

University Plaza – present design view from Wm Howard & Euclid

Opportunity to create major gateways

Start with anchors at north end (Hampton Hotel) and south end (Kroger)

Kroger thought “outside the box”

Private developer acquired shopping center

Barbell Strategy: University Plaza – South Anchor

Neighborhood Retail Zone

University Plaza – present design view from Wm Howard & Euclid

Urban plan reconnect the street

Kroger agreed to rebuild store

Consortium sponsored planning effort

Consortium secured $42 million in NMTCs ($15MM for Kroger new store)

Short Vine StreetRevitalize District by Zones – Start at Gateways to Middle

Financing gaps precluded the start of construction

MLK Drive

Vine St.

HamptonInn

Restaurant

Bank withRestaurant

below

MLK Drive

Vine S

t.

Hospitality/Retail Zone

MLK Drive

Vine St.

HamptonInn

Restaurant

Bank withRestaurant

below

Market Uptown as a dominant region for education and health care

Creative blend of NMTCs and TIF

Consortium financed $23 million project

Consortium owned & built parking structure with TIF revenues

Barbell Strategy: Hampton Inn – North Anchor

Short Vine StreetHospitality Zone – services university & hospital markets

Financing gaps precluded the start of construction

Short Vine StreetHospitality Zone – services university & hospital markets

NMTCs and TIF financed garage – air rights to developer for hotel development

Short Vine StreetHospitality Zone – services university & hospital markets

Hotel opened Winter 2010 and is now a south anchor amenity

Uptown Consortium• Significant grants sustained operations– all private ($1.35

million)

• Over 50 percent of budget from earned income

• 20 percent of budget set aside for loss reserves

• Community goals not always aligned with investor expectations

$15 mm acquired What is this really worth and can we develop it?

Lessons Learned – Value of Patient Capital

Access to Private Capital:Patient Source of Funds

Sources of Funds:

Investment Capital

UC – Endowment $100,000,000

Uptown Partners $97,000,000

Uptown Consortium $17,000,000

Cincinnati Housing Development Fund

$5,000,000

Total Available Capital

$219,000,000

Leverage Capital: $696,000,000 Source for land Acquisition and development: $25 million leveraged $85 million development

Source for venture capital: $1.7 million allowed minority-ownership of $8 million office building

Community Development Finance

• Coherent plans tied to financially viable strategies

• Pioneering developments require critical mass

• Planning, construction feasibility and financial analysis are integral

• Complex financial structures – mitigates risk and attracts private capital

Can you close the financing

gaps?Once you own it – can you develop/build on it!

Lessons Learned – Value of Planning & Analysis

Lessons Learned – Value of Communicating

Uptown Consortium• Master plans should unify stakeholders and create shared

vision

• Value communication vehicles – website, newsletters & summits

• Act transparent and trustworthy – community accountability