Real Estate Development Reuse Discussion for the USF-CEDR Basic Economic Development Course. City of St. Petersburg Economic Development Department

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1 Real Estate Development Reuse Discussion for the USF-CEDR Basic Economic Development Course

2 St. Petersburg A Changed City Median Age has dropped by 10 years since th Largest City in Florida ¼ of a million people Higher average household income ($50,631) than Tampa, Orlando and Miami Largest share of Manufacturing employment among large Florida cities (100K+ employees)

3 Downtown Snapshot More than 2,100 businesses More than 11,000 residents More than 28,000 employees

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5 Redevelopment is Our Present and Future

6 Why Redevelopment? Built-out environment less than 5% of land is vacant Increase tax base Create jobs Attract new investment

7 Comprehensive Redevelopment Strategy Redevelopment mechanisms Incentive programs Public/Private Partnership Regulatory process

8 Elements of a Public/Private Partnership Collaboration among governmental and private entities for mutual benefit Joint risk taking on construction, financing, and/or operations Undertaking that would not otherwise have been pursued

9 Elements of a Public/Private Partnership Typically to induce the private sector to address a public sector goal Revitalization of a targeted area Tax/employment generation within a underperforming area Fulfilling a specific public need (parking garage, convention hotel, etc.)

10 Regulatory Setting Most of Downtown is a Development of Regional Impact Area Large-scale developments generally can save 1 ½ - 2 years and at least $100,000 New land development regulations encouraging urban densities and mixeduses Design guidelines to assure quality development

11 Redevelopment Tools Community redevelopment areas/tif Brownfields Incentives Combined with Redevelopment Strategy

12 Community Redevelopment Act Codified in Part III Chapter 163 of the Florida Statutes Enabling legislation for the CRAs Cornerstone of Act Slum or Blight Private use of public aid for paramount public purpose

13 Community Redevelopment Act Land assembly Powers of eminent domain Flexible property disposition Private benefit Below market value Funding capabilities Tax increment financing Focused planning process Slum and blight conditions Adopted plan Policy buy-in Formal adoption process by CRA, municipal and county governments

14 Community Redevelopment Areas Downtown has four Community Redevelopment Areas (Jamestown, Intown West, Bayboro, and Intown)

15 Taxable Value of City Redevelopment Taxable Value (In Millions) $700 $600 $500 $400 $300 $200 $100 $26.7 $260.4 $25.8 $27.7 $296.7 $27.1 $28.4 $332.2 $29.5 $29.2 $384.9 $27.3 $30.3 $526.6 $28.8 $34.6 $575.8 $28.8 $32.4 $602.9 $0 Source: Pinellas County Property Appraiser's Office Fiscal Years intown west bayboro intown (without Tropicana)

16 Intown TIF District Intown TIF District Certified Taxable Value with Baseline $600 $500 $400 Millions $300 $200 $100 $ Source: Pinellas County Property Appraiser

17 Intown West TIF District Intown West TIF District Certified Taxable Value with Baseline $30 $25 $20 Millions $15 $10 $5 $ Source: Pinellas County Property Appraiser

18 Bayboro TIF District Bayboro TIF District Certified Taxable Value with Baseline $35 $30 $25 Millions $20 $15 $10 $5 $ Source: Pinellas County Property Appraiser

19 Incentives Combined with Redevelopment Strategy State Enterprise Zone Urban Job Tax Credit Zone Special Considerations for State incentives QTI Road Fund Florida Brownfield Reduced Transportation Impact Fees Transportation Concurrency Exception Area

20 The Development Process

21 Predevelopment Market feasibility and analysis Financial feasibility and analysis Tax and economic impacts Land assembly Environmental assessment

22 Contract Negotiations and Commitments Land purchase options Final design Permitting/zoning Commitments from end-users Parking

23 Construction Demolition Infrastructure Roads, electric, gas, high speed connections, redundancy Remediation

24 Building Occupancy Marketing the site Asset management Leasing Maintenance

25 Redevelopment Successes

26 The Leader in Redevelopment Public investment was a catalyst for change USF site assembly Bay Plaza/BayWalk site assembly Tropicana Field Two new parking garages Reclaiming underperforming real estate FIM/ Bayfront

27 BayWalk 206,000 SF of destination retail anchored by a 84,000 SF, 20-screen Muvico Theater 3 million visitors a year - exceeding expectations 6 level garage/1,380 parking spaces $40 million public/private development

28 Streetscaping $3.6 million unique public/private Bayboro streetscaping program $8 million streetscape improvements in Downtown retail core and Dome District Signage/ entry monuments Landscaping Reclaimed water/ Fiber optics

29 Mahaffey Theater Redevelopment Project Arena demolished Fall 2004 Mahaffey Theater Enhancement Project 2005 Relocation of the Dalí Museum

30 Tangerine Avenue CRA City Council voted unanimously to approve an agreement for the construction of a Sweetbay grocery store, valued at $5.4 million. Additional retail space to include a SunTrust bank. $2.5 million public investment

31 Progress Energy HQ Kessler Grand Bohemian Site assembly Demolition of old Maas Bros. Building Relocation of Florida International Museum Construction of 16-story 200K-SF Class-A office tower and 31-story hotelresidence tower

32 The Madison $30 million, 277-unit luxury apartment and townhouse project developed by ZOM Converted to condominium Price ranged from $99K to $299K; Resales range from $239K to $500K Rental range $1,350 - $1,900

33 Hampton Inn & Suites $5 million, 92-unit hotel by JMC Communities One of the few hotels in the country constructed and financed after 9-11, opened in January 2003

34 University Village $8.1 million, 51,000 SF shopping center anchored by Publix, developed by Sembler Other tenants include Great Clips, Hollywood Video, GNC, and Subway

35 Parkshore Plaza $100 million, 29-story tower with 120 condo units by Opus South Surrounded by three and four-story buildings with 25,000 SF of retail, office and townhomes Prices will range from $269,000 to $3.5 million

36 More than $1 billion public/private dollars invested in the last ten years

37 Construction Value Permitted Millions of Dollars * Fiscal Years * Includes $60 million renovation of Tropicana Field Source: City of St. Petersburg Development Services Department

38 Lessons Learned Leverage private sector investment with public funding Importance of partnerships Grassroots, community support for projects No part of the city left behind Redevelopment is a long-term project Full organizational commitment Maximize your toolbox Be flexible Be persistent