from eye sore to a must see: creating urban parks from thin air and adding real estate value...
TRANSCRIPT
ULIOctober 28, 2010
SCAGCity of Los AngelesFriends of Park 101
AECOM Design + PlanningThe Robert Group
2008 EDAW Summer Intern Program _ PARK 101 Endorsements
Southern California Association of GovernmentsCompass Blueprint
Working with local governments to accommodate expected growth while improving regional mobility, prosperity, livability and sustainability
SCAG has completed nearly 100 Demonstration Projects
• Technical assistance for local planning that
– Demonstrates the local benefits of regional goals
– Creates models to replicate throughout the region
– Applies innovative planning tools
SCAG
LA R
iver
Uni
on S
tatio
n
Gra
nd
Ala
med
a
Temple
Cesar Chavez
PARK SUB-DISTRICTS
THE BIG IDEAS
CONCEPTUAL PLAN
Gra
nd A
ve
Ala
med
a S
tree
t
Vig
nes
Str
eet
Temple Street
Cesar Chavez
LA R
iver
EAST GATEWAY PLAZA
THE AMPHITHEATER
OVERVIEW • Case study findings
• Value creation opportunities
• Cost estimates
• Funding options
• Next Steps
OVERVIEW
Park 101 DistrictEconomic Feasibility
CASE STUDIES
VALUE CREATION• Infrastructure investments spur commercial activity
• Initial opportunity sites: parking lots, existing streets, ramps, & right-of-ways
• New parks, streets, lighting, pedestrian linkages, transit options >>> new hotel, office, retail, and residential development
VALUE CREATION
NO RECENT TRANSACTIONS
NO ACTIVE PROPERTY LISTINGS
KEY COMPONENTS
• Development sites
• Cap Park
• Park (not over cap)
• Streetscape
• Existing urban development, cultural amenities, private holdings
KEY COMPONENTS
• Phase 1: El Pueblo Gateway
• Phase 2: Hotel & Mixed Use
• Phase 3: Spring Street
• Phase 4: Alameda/Station
• Phase 5: Cathedral
PARK DISTRICT PHASING
Phase 1_UNION STATION PROMENADE
Capital Costs for InfrastructureRequired Infrastructure: $2.5 million
New Development Value: $0 million
Less Development Costs: ($0 million)
Net Land Value Created: $0 million
Capital Funding for Infrastructure
Public Funding: $2.5 million (100%)
City of Los Angeles: $1.25 million
Transportation Funds: $1.25 million
Land Program Redevelopment:
Public only
Public Improvements
1.1 acre park
Streetscape: 0.25 miles
Timeframe: 12-24 months
Phase 1_UNION STATION PROMENADE
MAIN STREET CAP PLAZA
Capital Costs for InfrastructureRequired Infrastructure: $34 million
New Development Value: $145 million
Less Development Costs: ($119 million)
Net Land Value Created: $26 million
Capital Funding for Infrastructure
Land Value Capture: $18 million (55%)
Potential TIF: $13 million
Fees & Exactions: $5 million
Other Funding: $16 million (45%)
Transportation Funds
State & Local Sources
Federal Funds (Stimulus, ARRA, etc.)
Land Program Redevelopment: 4.5 acres
250-room hotel
Mixed use office/retail: 280K SF
1,200 new full-time jobs
Public Improvements
1.1 acre park
1.3 mile streetscape
Timeframe: < 5 years
PHASE 2: HOTEL & MIXED USE
Capital Costs for InfrastructureRequired Infrastructure: $77 million
New Development Value: $252 million
Less Development Costs: ($207 million)
Net Land Value Created: $45 million
Capital Funding for Infrastructure
Land Value Capture: $31million (40%)
Potential TIF: $21 million
Fees & Exactions: $10 million
Other Funding: $46 million (60%)
Transportation Funds
State & Local Sources
Federal Funds (Stimulus, ARRA, etc.)
Land Program Redevelopment: 9.9 acres
Mixed use office/retail: 350K SF
420 Apartments & Condos
1,600 new full-time jobs
Public Improvements
6.4 acre park
1.3 miles streetscape
Timeframe: < 5 years
PHASE 3: SPRING STREET
Infrastructure Costs Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Total
Freeway Cap Park 0% 76% 79% 90% 88% 85%
Park 43% 1% 6% 2% 2% 3%
Streetscape & New Roads 57% 23% 15% 8% 10% 12%
Total Cost ($ millions) $2.5 $34 $77 $59 $215 $387
Induced Private Investment $ - $119 $208 $ - $81 $408
Infrastructure Funding
Private Value Capture $ - $18 $31 $ - $12 $61
0% 53% 41% 0% 6% 16%
Other Funding Required $2.5 $16 $46 $59 $202 $325
100% 47% 59% 100% 94% 84%
All values in millions of dollars
INFRASTRUCTURE COST
Components Park Station River Total
Residual Value Created $83 m
Redevelopment (acres) 18.2
Redevelopment (million SF) 1.5 m SF
Residual Value per Acre ($ million) $4.5 m
Implied FAR 2.0
New Park (acres) 22 13 10
Potential Development Rights (million SF) 1.9 1.1 0.9
Potential new value ($million) $100 $59 $49
Potential Capture (10-20%) $10-$20m $6-12 m $5-10 m $21-42 m
TDR Funding Option
Components Park Station River Total
Cap Park ($millions) $328 $111 $0 $439
Park ($m) $12 $51 $63 $126
Streetscape($m) $47 $98 $20 $165
Total Infrastructure Costs($m) $387 $260 $83 $730
DIRECT COST SUMMARY
IMMEDIATE NEXT STEPS
• Political Champions
• High Speed Rail Design & Implementation
• Union Station Gateway:
– $1.1 million for park improvements
– $1.4 million for roadway improvements
– Potential Sources: City of LA, Metro, CalTrans
• Park 101 District-wide Environmental Documents
– Non-capital transportation funding
– Caltrans/METRO: CMAQ, TE Grants, STP, etc.
– HSR Mitigation
IMMEDIATE NEXT STEPS
THE GREEN