ALLEN STREET CIVIC DISTRICT RDA PROPOSAL

Transcription

1 ALLEN STREET CIVIC DISTRICT RDA PROPOSAL REDEVELOPMENT PROPOSAL APPROVED BY: SC REDEVELOPMENT AUTHORITY AUGUST 26, 2015

2 Figure 1: Mayor Welch Plaza: The 200 block of S. Allen Street and the Mayor Welch Plaza at the State College Municipal Building has become a focus area for community events, such as the inaugural LION Bash in the fall of Figure 2: Hillsboro Civic Center: This civic center was built in the mid 2000 s in Hillsboro, Oregon, to feature government offices as well as a mix of retail space, housing and public plazas. 2 STATE COLLEGE REDEVELOPMENT AUTHORITY

3 introduction Purpose This proposal has been prepared for Borough Council regarding redevelopment opportunities for the Allen Street Civic District. This proposal outlines the recommended steps for the Borough to carry out in order to advance redevelopment activities which are consistent with the plan for the District. The Authority believes that the recommendations outlined herein will achieve the shortterm development goals articulated in the plan, and will become a catalyst for the transformation of this district into the civic hub of downtown. 1 What is a Great Civic Space? Project for Public Spaces Web. 26 Aug reference/benefits_public_spaces/ Vision of a Civic Center The Redevelopment Authority supports the recommendations of the Downtown Master Plan and the Allen Street Civic District Redevelopment Plan for this area to become the civic center for State College and the Centre Region. According to the Project for Public Spaces, civic centers are places that give identity to cities, provide economic benefits, and provide a setting for cultural and social activity. They are considered the front porches of our public institutions, where residents of a community can engage with their government as well as each other. Civic centers are places where celebrations are held, where social and economic exchanges take place, where friends run into each other, and where cultures mix. 1 Civic centers are prominent areas within a community, which are designed and constructed in such a way that the area becomes the focal point and the functional center of the community. Civic centers typically feature a mix of publicly-focused uses, such as government offices and libraries, as well as convention, sports, entertainment, and business attractions. This core of downtown State College already features many of the makings of a civic district. The vision of this redevelopment proposal is to further enhance this district with a successful mix of uses to clearly define it as the center of the State College community. REDEVELOPMENT PROPOSAL 3

4 a b f c d g e Allen Street Civic District State College Town Center Catalyst Sites Allen Street Civic District Boundary Proposed Catalyst Redevelopment Sites a- FNB Bank Drive Thru b- Former Verizon Bldg. c- Jeramar Plaza d- Allen Street Lot e- Verizon Bldg f- US Post Office e- Sidney Friedman Parklet Figure 3: Catalyst Redevelopment Sites: The Redevelopment Authority proposes the redevelopment of the Borough-owned Allen Street Parking lot and former Verizon Building as well as the First National Bank s Drive Thru site as a catalyst project. 4 STATE COLLEGE REDEVELOPMENT AUTHORITY

5 proposal State College Town Center The Redevelopment Authority proposes the State College Town Center project as the catalyst for the redevelopment of the Allen Street Civic District. This project, designed around the relocation of the Discovery Space Children s Science Museum, should include the redevelopment of the Borough-owned properties along Allen Street, as well as the privately-owned First National Bank site. The sites recommended for redevelopment in this catalyst project are mapped in Figure 3 on page 4. Details about these sites, and others in the Allen Street Civic District are available in Table 1. a b Parcel ID Address Name Area ,155-, S Allen St ,156-, S Allen St FNB Bank Drive Thru Former Verizon Building.29 ac.23 ac c ,157-, S Allen St Jeramar Plaza.34 ac d ,159-, S Allen St Allen St. Lot.47 ac e ,161-, S Allen St Verizon Switching Station.31 ac f ,294A, S Fraser St Post Office 1.48 ac g ,294B, S Fraser St Sidney Friedman Parklet Total Property Total Area Table 1: Properties in the Allen Street Civic District.92 ac 4.04 ac 4.72 ac While these sites may be developed in phases, the programs for the buildings should be complimentary, and include uses which will enhance the 200 block of S. Allen Street as the civic center for the community. The Redevelopment Area Plan for this district should be used as a guide for the design of both buildings and public areas. Project Elements The State College Town Center should be designed to provide maximum flexibility for the eventual users of the facilities. During the stakeholder input phase of the planning process, many community organizations identified a need to conduct longer-term planning and fundraising before their participation could be realistically evaluated. However, there was a strong interest by many in being considered in the future for potential partnership opportunities, and many desire a downtown location, potentially along Allen Street. REDEVELOPMENT PROPOSAL 5

6 Therefore, the Redevelopment Authority has identified several key elements that should be required of design proposals for these sites, including: Future home for the Discovery Space Children s Science Museum. Relocated FNB Drive Thru facility, should the FNB property be included in the redevelopment project scope. Replacement of the Borough s 32 public parking spaces displaced by development, on the Allen Street lot, should the property be include in a redevelopment project scope. Some on-site parking which will support the needs of Discovery Space and FNB employees. New or enhanced public gathering space within the district, located along Allen Street; enhancements may be made by either the private sector as part of a redevelopment, or the public sector through future capital improvements. The Redevelopment Authority recommends that the Request for Proposals (RFP), when issued, not be overly cumbersome in its required elements. Care must be taken to preserve the financial and strategic viability of a redevelopment project in this area, while clearly articulating the Borough s most important objective- to create a civic district. Therefore, other project elements supporting the development of a civic center may be considered during the design proposal phase. Any additional project elements desired by the Borough should be indicated as preferred or encouraged, rather than required. These elements should take the form of a short narrative accompanying the RFP and indicating any additional preferences the Borough has for the project. The narrative should clearly state that it is preferred that proposals include these elements, but only if they re feasible. Two such elements which have been discussed by the RDA to-date include: If housing is to be a component of redevelopment proposals, the units should not be purpose-built student housing, and should be appropriately designed and priced for a range of workforce and professional tenants. If additional commercial office space is to be a component of redevelopment proposals, the space should be vanilla box, or not purpose-built for any one tenant, in order to ensure that the spaces can be easily retooled by future tenants. Community stakeholders identified many additional opportunities for project elements. This input is summarized in Appendix A of the Redevelopment Area Plan. This summary should be provided along with the RFP, so that redevelopment proposals respond to the community s needs. 6 STATE COLLEGE REDEVELOPMENT AUTHORITY

7 implementation Step One: Request for Qualifications The Redevelopment Authority recommends that the first step in implementing this proposal should be to hire a development consultant to advise and act on behalf of the Redevelopment Authority, and its partners. This step is a critical one, and can help the Borough move in the appropriate direction- towards the preparation of a Request for Proposals (RFP). While the Planning Commission and Redevelopment Authority have studied the opportunities for redevelopment in the area, many technical questions remain regarding the feasibility, timing, cost and partnership opportunities associated with this proposal. Furthermore, in order to advance this proposal, the Borough will need to negotiate a fair partnership with organizations, such as Discovery Space and private property owners, who will be part of a project within the Allen Street Civic District. Finally, there are many outstanding studies that will need to be completed prior to the issuance of an RFP. Real estate development and public-private partnership literature strongly recommend that the entity interested in advancing redevelopment should control the properties desired for redevelopment, and that due diligence should be complete prior to issuing an RFP. The RDA recommends this course of action in order to ensure that these two key items are completed prior to publishing an RFP. Benefit to the Borough The recommendation to hire a development liaison to carry out this proposal is a careful one. Through many discussions with the Borough s ABC s and staff, it is recognized that professional experience in public-private partnerships will benefit the Borough tremendously. This will help the Borough avoid unintended risks associated with making recommendations or entering into agreements without a full interpretation of the corresponding outcomes. Simply put, staff and the ABC s have completed the extent of the feasibility analysis and planning for which they re qualified. Redevelopment Authority Recommendation for the State College Town Center Authorize RDA to initiate redevelopment project on Borough sites, FNB site on S. Allen RFQ for a development liaison to complete due diligence & be a professional resource to RDA RFP for a public-private partnership for a catalyst project, the State College Town Center By issuing a Request for Qualifications for a development liaison, the Redevelopment Authority can benefit from the following potential services and expertise: Professional evaluation of the recommendations of the Planning Commission and Redevelopment Authority. REDEVELOPMENT PROPOSAL 7

8 Assistance with the development of an RFP which represents the community s need. Assistance in soliciting appropriate due diligence and feasibility studies. This may include negotiations with private property owners on behalf of the Borough, contracting professionals to conduct geotechnical studies, and other services to prepare the sites for redevelopment. Recommendations to the RDA regarding the feasibility of the elements of the RFP to ensure that a responsible and articulate RFP is shared with potential partners. Advise the RDA on the appropriate models for publicprivate partnership that will achieve the RDA s goals and be attractive to potential partners. Assist the Borough with the review of responses to an RFP, to evaluate the qualifications of the teams and help the RDA understand the associated costs and benefits with each proposal. Help coordinate developers agreements and other documents as the Borough enters into a partnership with outside entities. The Redevelopment Authority understands that there is a cost associated with this course of action. For this reason, during its review of the Capital Improvements Program, the RDA backed staff s recommendation for capital funds for redevelopment projects in It was anticipated that funding would be needed to prepare sites for redevelopment or to obtain other professional services for planning. While the RDA is not able to estimate how much these services may cost, it recommends that some or all of the requested 2016 funding from the CIP be included in the 2016 Operating Budget; the requested amount for 2016 in the CIP was $150,000. Step Two: Request for Proposals With a development liaison acting on behalf of the Borough, the next step in advancing the proposed course of action is the development and issuance of a Request for Proposals (RFP). As articulated previously, the professional advice of the development liaison will assist the RDA in structuring this RFP. The RDA has indicated the minimum required elements that it feels should be included in responses to the RFP. This is spelled out in the Project Elements section. An additional element that the RFP should include is a statement on partnership arrangements that the RDA may be willing to entertain. Again, the development liaison should advise the RDA on appropriate partnership structures based on the desired project elements. This should include advice on any mechanisms the Borough may be able to use to address financial gaps, in order to improve project feasibility. These may include 8 STATE COLLEGE REDEVELOPMENT AUTHORITY

9 the Borough s application for state or federal funding, financial assistance from local resources, or other strategic commitments. The RDA has discussed elements of a partnership that it believes are most important. These elements include: The value of the Borough s assets, which are subject to a partnership arrangement, should be recouped either in the short or long term. The Borough should have a continued interest in the property, whether through a right of first refusal, long-term land lease, or other arrangement. The Borough should not be in a position of owning, operating or maintaining additional buildings and units. Upon the receipt of proposals, the RDA recommends that a small review committee be convened to review the development proposals. This committee should include representation of Council, Redevelopment Authority, Planning Commission, and planning and administration staff. The RDA feels that this committee should consider at least the following criteria in their review of proposals: Appropriateness of proposals in responding to the Borough s goals and objectives for redevelopment How the available sites are to be utilized for redevelopment The developer/team s experience with similar redevelopment projects The developer/team s specialties and capacity to secure financing with minimum public subsidy REDEVELOPMENT PROPOSAL 9

10 alternative recommendations The Redevelopment Authority recognizes the Borough s current fiscal limitations with respect to preparing the 2016 Operating Budget. Undoubtedly, this will impact the Borough s ability to advance a project of this scope. While the RDA encourages Council to advance a budget which includes capital funds to carry out this proposed course of action, the RDA has considered alternative recommendations that are more fiscally sound. Alternative Recommendation A In the event that funding for a development liaison is not able to be accommodated in the 2016 Operating Budget, Council should consider postponing this project by one year. If this option is selected by the Borough, the RDA recommends that Council schedule the funding for a development liaison to be hired in the 2017 Operating Budget. During 2016, the Planning Commission can continue its work to study the expansion of the Allen Street Civic District, potentially to include the SCASD properties along Fraser Street or others that should reasonably be included in the district. Alternative Recommendation B Alternatively, if funding is not available for a development liaison, and the Borough does not believe that its fiscal condition will change significantly within the next several years, the RDA recommends that the Borough advance a partnership with Discovery Space. This partnership should consider Discovery Space s request to own a building, and should explore options for the Former Verizon Building that can take effect at the conclusion of the two-year lease with Penn State University. The RDA recommends that the Borough negotiate a sales price for the conveyance of the building s ownership that is reasonable to both parties. Alternatively, the Borough may also consider a lease or other mechanism which would allow a continued interest in the property, perhaps through a right of first refusal, which will allow the Borough to ensure that the property is used for purposes fitting of a civic center in the future. 10 STATE COLLEGE REDEVELOPMENT AUTHORITY

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12 TO FIND THIS REPORT ONLINE, PLEASE VISIT: REDEVELOPMENTPLAN