Southwest Center Mall Dallas, Texas Presentation to: City of Dallas Office of Economic Development. June 14-19, 19, 2009

Transcription

1 Southwest Center Mall Dallas, Texas Presentation to: City of Dallas Office of Economic Development June 14-19, 19, 2009

2 ULI Advisory Services Panel: Revitalization Strategies for Southwest Center Mall Sponsor: City of Dallas Endorsed by the Mayor s South Dallas Task Force 9 professionals who donate their time. June 14-19, 2009 Thank you to the over 70 community members, stakeholders and officials who took the time to participate and inform the panel through the interview process.

3 The Urban Land Institute International non-profit research organization with 40,000 members. The standard setter in development practices. The Mission: to provide leadership in the responsible use of land and in creating and sustaining thriving communities worldwide

4 The Panelists Michael Berne, MJB Consulting, New York NY Marta Borsanyi, The Concord Group, Newport Beach, CA Stephen Dragos, Greater Camden Partnership, Camden NJ Robert Feinberg, Grubb & Ellis, Albuquerque NM Terri Gumula, MMDC, New York NY Monte Ritchey, The Conformity Corporation, Charlotte, NC Jamie Rusin, ELS Architecture &Urban Design, Berkeley, CA Bryce Turner, Brown Craig Turner, Baltimore, MD Charlie Long, Charles A Long Properties, Berkeley CA

5 The process Background material sent out 2 weeks in advance Tour of the site and the region Interviews: over 70 community members and officials. 2 days formulating recommendations and conducting additional research Deliver recommendations to the community. LEAVE TOWN for the community to do the work to implement

6 Southwest Center Mall (Redbird Mall) Built in 1975 by DeBartolo Company--1.1 million square feet Changed to Southwest Center Mall in JC Penney left for Cedar Hills in 2001-store (vacant and for sale) Dillards Left for Cedar Hills in 2007-store (vacant and for sale) Montgomery Ward Went bankrupt in 2001 store currently occupied by Burlington Coat Factory Macy s replaced Foley s when Federated Department Store acquired May Company in 2006 Sears currently operating and profitable Mall owner went bankrupt in 2008, current owner is Madison Realty Capital.

7 A "Mostly Dead" Mall Sears, Macy s and Burlington Coat Factory are still operating and profitable. More than half the floor space is vacant Feels lonely Configuration of Mall is obsolete City has tried to recruit a developer to redevelop the mall NO LUCK Over-retailing in South Dallas makes investment in new retail problematic.

8 Our findings: The market: too weak to support private investment in revitalization without public investment. Site: There are six property owners on the site: Independent and interdependent. There really is no existing plan for how to revitalize the mall.

9 Our findings (continued) The community strongly supports revitalization to restore the mall site as a community resource. There site has poor access, limiting the its market potential. There are concerns about the City s commitment to help with revitalization The window of opportunity to save the Southwest Mall as a viable retail site is closing fast. The City and community need to act NOW!

10 Our Recommendations 1.Form an expanded tax increment financing district, including Executive Airport, to finance public investment in revitalization, job development and housing rehabilitation.

11 Our Recommendations (continued) 2. Initiate a communitybased revitalization strategy that finalizes development options and produces zoning consistent with revitalization.

12 Our Recommendations (continued) 3. Buy the Dillards and JC Penney parcels immediately to reduce the number of owners and to gain site control.

13 Our Recommendations (continued) 4. After the communitybased revitalization strategy is created, recruit a developer or developers to implement the plan.

14 Our Recommendations (continued) 5. Negotiate public private and civic partnerships that address the viability of the development.

15 Our Presentation 1. The context: Why public private partnerships will be vital for successful transformation at Southwest Mall. 2. What can happen: ideas to aspire to in the community-based planning process. 3. How do you make it happen: the strategies. 4. The tools: What they are, how do you use them and when?

16 The shopping mall is the quintessential American contribution to the world s consumer culture stated the Urban Land Institute s recent publication. But the condition that led to the creation of shopping malls and sustained them for decades are changing rapidly.

17 The site s trade area is Oak Cliff. Oak Cliff is changing. Source of demand is also changing: in age in household size in ethnicity The retail product is changing as well.

18 Demand Not North Dallas Population Workers Median HH Income Average HH Income Retail Expenditures Food/Bev Expenditures Prestonwood Town Center 342, ,891 $62,644 $90,627 $5.5B $1.7B Southwest Center Mall 239,987 n/a $45,551 $58,321 $1.8B $587M

19 Trade Area Delineation

20 Demand Typical mall requires 200, ,000 people Population larger than Waco and growing Middle-income

21 Supply (competitors, for both shoppers and tenants) Typical mall shopping: Uptown Village, Parks at Arlington, Big-box shopping: Wheatland Road Outlet mall: Tanger, Prime Grocery shopping: no traditional mid-market operator Entertainment: no multiplex within clearance area

22 National Context - Next exit phenomenon, leaving earlier rings to die -Especially acute here in Dallas

23 Site-Specific Factors Existing Tenant Mix Shopping experience Visibility/Access

24 Retail Program Retail Use Sear s Macy s BCF Multiplex Grocer In-Line TOTAL Square Feet 205, ,200 96,612 50,000 (approx.) 50,000 (approx.) 172, ,649 SQ FT

25 Political Context Fragmented ownership, no integrated plan In-line owner Too much that still needs to be done

26 What does it all mean? Mixed-use Mitigate the risk, initiate a public-private partnership Secure a place at the table Inclusive vision

27 Beyond retail, there are opportunities for other real estate products that could change the mall into a village, such as: Offices for profit and for non-profit, civic users Senior citizens homes for sale and/or for rent Recreation on site and in connection with Boulder Park A first-run cinema and/or an amphitheater Education: a charter school, a college, nursing school, etc.

28 A UNIQUE AND COMMUNITY BASED SOLUTION Environmentally and Socially Sustainable Oak Cliff s Best Place. The Heart &Soul Incorporate Amenities Open Space / Lawn / Town Square Landscaping Outdoor Performance Area Fountains Lively Streetscape Food Entertainment

29 A UNIQUE AND COMMUNITY BASED SOLUTION Consider New Uses During the Community Planning Process Cinemas Residential Food Market Education Employment / Training Center Recreation

30 Assets and Opportunities

31 Assets and Opportunities

32 Assets and Opportunities

33 Assets and Opportunities

34 Assets and Opportunities

35 Assets and Opportunities

36 Connect to Rail Connections

37 Access and Address

38 Implement TXDOT Plans Access and Address

39 Boulevards and Address

40 Ownership Puzzle

41 Streets Reconfigure Ownership

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63 Getting Started

64 The District Expand the Planning Area

65 Community Planning

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74 CURRENT VISION

75 The Time to Act is Now The Window of Opportunity is Now Secure the talent to guide real estate transactions Purchase vacant department stores and sites Create a Tax Increment Financing (TIF) district Organize a Strategic Redevelopment Visioning Process Agree upon a developer selection process Establish a framework for accountability

76 Balance anchor stores with local flavor to draw from the region Improve Freeway access Improve way-finding and site signage Improve name and identity Blend community spaces with regional attractions

77 The Public/Private/Civic Partnership Vision a world class mixed-use center Insert pic of people Produce a communitybased consensus plan Create a Public/Private/Civic implementation enterprise

78 The Public Space Centerpiece of the Strategic Redevelopment Plan Expanding the local marketplace and regional draw Rediscovery of meaningful ways to belong to the community

79 Achieving consensus on the vision Identify and organize the stakeholder group Employ an expert professional facilitator Institutionalize the vision Be prepared for change

80 Create a Public/Private organization Be the keeper of the vision Represent consistent and coordinated leadership Document a clear and rational decision-making process

81 Prepare for Development Assure that all essential resources are available Streamline public improvement process Agree on equitable developer selection process (RFQ)

82 Prepare for Development Assure that all essential resources are available Streamline public improvement process Agree on equitable developer selection process (RFQ)

83 What needs to happen? Add image from Jamie

84 What needs to happen? Create Tax Increment Financing District ( TIF ) Assemble the Site Community-based Revitalization Strategy for Southwest and adjoining areas Implement rezoning that supports results of communitybased Revitalization Strategy Move non-essential airport land to Economic Development for the City of Dallas Request for Qualifications for Developers Negotiate Public/Private/Civic Partnerships

85 But How? How do we make this happen?

86 Incremental Assessed Value = Value created from new investment Tax Increment $ Redevelopment Agency Invest in project area Base Assessed Value= Property Tax $ CITY/COUNTY Provide Services Value of project area when formed

87 Create Tax Increment Financing (TIF) District As part of our interviews this week the City has indicated that they are prepared to participate We believe City participation will need to be at least $50 million

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89 The area inside this map would benefit from future tax dollars that are generated by new development in the area. TIF is the mechanism for public investment to address the issue of viability. Most urban revitalization strategies involve a Private Public Partnership

90 TODAY Value - $57 million FUTURE Value with Planning - $200 million

91 TIFs close funding gaps and push forward projects that might not otherwise succeed. What types of things do TIF dollars pay for? Access (Roads) Assembly (Land) Improvements (Streetscapes, Trees, Parks, Beautification) Structured Parking (as and if necessary)

92 Assemble Land

93 Assemble Land This purchase is probably a good idea and the property is available. Funded by the City of Dallas today, monies will be repaid from the future TIF Private Sale and the window of opportunity is narrow Use an independent consultant who is responsible to the City and taxpayers to work through this Site control will be helpful under these certain circumstances

94 Community Based Revitalization Ongoing Strategy Community-wide (Citizens, Business Owners, City, Parks, Airport, etc.) effort to achieve the shared vision Market Practicalities Job development strategies Entrepreneurial incentives Developer incentives, where appropriate Don t shortcut this process. It has a life. Done properly, it is an organism. This plan creates a much broader vision.

95 Fruits of Revitalization Effort funded by the TIF and is a catalyst for creating areawide economic vitality Housing Jobs Education

96 Implement rezoning that supports results of community-based Revitalization Strategy Start a Small Area Plan (SAP) that includes the Southwest Center Mall Note: This Small Area Plan is also a public process This (SAP) Leads to zoning recommendations for Southwest Center land and nearby areas New zoning tools are in the works or recently approved Great news for Redbird Mall

97 Request for Qualifications ( RFQ ) Process Create RFQ Selects Developer(s) based on Experience, Qualifications and understanding of the economics Train City employees to understand real estate economics Ensure independent third-party verification of the deal

98 Creating a sense of place, a destination, involves more than maximizing each site s value individually. Collaborative Process is Best Practices Planning is Cheap Fixing is expensive, time consuming, and ruins communities.

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