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HomeMy WebLinkAboutNovember 11, 2003 Agenda AGENDA CITY OF DENTON CITY COUNCIL November 11, 2003 After determining that a quorum is presem, the City Council will convene in a Planning Session of the City of DeNon City Council on Tuesday, November 11, 2003 at 4:00 p.m. in the City Council Work Session Room at City Hall, 215 E. McKinney, Denton, Texas at which the following item will be considered: NOTE: A Planning Work Session is used to explore matters of interest to one or more City Council Members or the City Manager for the purpose of giving staff direction imo whether or not such matters should be placed on a future regular or special meeting of the Council for citizen input, City Council deliberation and formal City action. At a Planning Work Session, the City Council generally receives informal and preliminary reports and information from City staff, officials, members of City committees, and the individual or organization proposing council action, if invited by City Council or City Manager to participate in the session. Participation by individuals and members of organizations invited to speak ceases when the Mayor announces the session is being closed to public input. Although Planning Work Sessions are public meetings, and citizens have a legal right to attend, they are not public hearings, so citizens are not allowed to participate in the session unless invited to do so by the Mayor. Any citizen may supply to the City Council, prior to the beginning of the session, a written report regarding the citizen's opinion on the matter being explored. Should the Council direct the matter be placed on a regular meeting agenda, the staff will generally prepare a final report defining the proposed action, which will be made available to all citizens prior to the regular meeting at which citizen input is sought. The purpose of this procedure is to allow citizens attending the regular meeting the opportunity to hear the views of their fellow citizens without having to attend two meetings. Receive outcome statemems and hold a discussion regarding long range (50 year) planning issues for Solid Waste, Wastewater and Water. Receive a report and hold a discussion regarding dowmown and implememation of the Downtown Master Plan. o Suggestions for Agenda Committee on future agenda items and/or placement of items for upcoming agendas. CERTIFICATE I certify that the above notice of meeting was posted on the bulletin board at the City Hall of the City of DeNon, Texas, on the day of ,2003 o'clock (a.m.) (p.m.) CITY SECRETARY NOTE: THE CITY OF DENTON CITY COUNCIL WORK SESSION ROOM IS ACCESSIBLE IN ACCORDANCE WITH THE AMERICANS WITH DISABILITIES ACT. THE CITY WILL PROVIDE SIGN LANGUAGE INTERPRETERS FOR THE HEARING IMPAIRED IF REQUESTED AT LEAST 48 HOURS IN ADVANCE OF THE SCHEDULED MEETING. PLEASE CALL THE CITY SECRETARY'S OFFICE AT 349-8309 OR USE TELECOMMUNICATIONS DEVICES FOR THE DEAF (TDD) BY CALLING 1-800-RELAY-TX SO THAT A SIGN LANGUAGE INTERPRETER CAN BE SCHEDULED THROUGH THE CITY SECRETARY'S OFFICE. AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: ACM: November 11, 2003 Economic Development Mike Conduff, City Manager~PrP'~ SUBJECT Receive a report and hold a discussion regarding downtown and implementation of the Downtown Master Plan. BACKGROUND Downtown Master Plan Downtown continues to rank high in the City Council's list of priorities. In February 2001, the City Council hired Fregonese Calthorpe Associates to develop a Downtown Master Plan. The two-year process involved community workshops and several meetings with the Planning and Zoning Commission and City Council. The Plan was approved by Council on June 3, 2003. Recently, the Downtown Master Plan received the Project Planning Award from the Texas chapter of the American Planning Association. The Main Street staff has been advised that the Master Plan will also be receiving an award from the Texas Downtown Association in November at their annual conference. TIP Strategies, Inc. Downtown was also one of four projects identified by TIP Strategies, an economic development consulting firm hired to help guide future economic development strategies and programs. TIP concluded that careful implementation of the Master Plan will provide opportunities to capitalize on downtown's potential to become the economic and social center of the city. They support the economic importance of downtown through several trends: · Rise in downtown housing due to: © Dissatisfaction with suburban living and a growing awareness of the costs of sprawl. © Rise in number of"empty nesters" resulting from the aging baby boom generation. · Vibrant downtowns are cited as factors in recruitment of businesses (Boeing's choice of Chicago) · Vibrant downtowns are also factors in attracting a skilled, educated workforce, as cited in Richard Florida's book, The Rise of the Creative Class. · Downtowns offer range of building sizes and types in a pedestrian scale, making them ideal for niche retail and entertainment venues. The section of TIP Strategies' final report regarding downtown is provided as an attachment. Downtown Task Force A task force has been enlisted to help implement the TIP plan. The group began monthly meetings in July 2003. A copy of the task force's action plan is attached. This information is being provided for your review and for discussion during this planning session. EXHIBITS Downtown Master Plan (provided separately on CD) TIP Strategies Report (excerpt on Downtown) Respectfully submitted: Linda Ratliff, Director Economic Development Department Denton Downtown Development Summary DOWNTOWN DEVELOPMENT Opportunity With its historic courthouse and well-preserved town square, Denton is one of the few "authentic" downtowns in the Dallas/Fort Worth area. While other communities in the Metroplex and around the country try to recreate their urban center--having recognized the economic potential--Denton has tremendous promise to create a thriving downtown using its existing elements. The Downtown Master Plan recently completed with the assistance of Portland, Oregon-based Fregonese Calthorpe Associates (FCA), outlines a number of opportunities and strategies for revitalizing the urban center. Careful implementation of the plan will provide ample opportunity to capitalize on the downtown's potential to become an economic and social center of the city. Recommendations With an existing downtown development plan, TIP feels that the recommendations must tie closely to the economic benefit that accrues from downtown development. The key word here is "development." The attractiveness of the downtown is not our primary consideration. We take this position for two reasons. First, the Fregonese- Calthorpe plan addresses aesthetics and amenities and puts them in the context of overall revitalization. Second, downtown improvements, regardless of how well considered, do not automatically translate to economic benefit. This is another way of saying that the goals of downtown improvement are not necessarily those of economic development. In fact, bringing the two approaches into alignment is part of what we see as the purpose of the task force. Without an economic development approach, we see the possibility of the downtown becoming a "living museum," an attraction without an admission charge. The recent resurgence of interest in downtown revitalization is a reflection of a number of trends. Dissatisfaction with suburban living and a growing awareness of the costs of sprawl, coupled with a rise in the number of "empty nester" households resulting from the aging of the baby boom generation, has fueled a boom in downtown housing. The presence of a vibrant urban center has been cited as a factor in the recruitment of businesses--highlighted most recently by Boeing's choice of Chicago-- and in attracting a skilled, educated workforce. Downtowns also typically offer a range of building sizes and types in a pedestrian scale, making them ideal for the development of small-scale retail businesses (so-called specialty or "niche" retail) and entertainment venues, which contributes to the tax base of a community. TIP STRATEGIES, INC. 8 Denton Downtown Development Summary An alternative vision, the one being promoted by TIP, says that the long-term viability of a downtown must be linked to specific economic benefits. The discussion in this report seeks to establish that linkage. The following recommendations are based on the work of the downtown task force and the experience of the consulting team. Adopt a structure for implementation of the FCA plan. Successful plan implementation typically requires the creation of a formal implementation structure. In Benton's case, formalizing the current downtown task force should provide such a structure. The task force could be renamed to reflect its permanence and membership should be reviewed as needed. The task force would be given oversight for the specific elements of the plan. Work of the group should be coordinated with existing initiatives, such as the city's Main Street program. The formation of a public improvement district (PID), or even a tax increment reinvestment zone (TIRZ), if appropriate, are important financial and organizational options that the task force should consider. From an organizational standpoint, the task force should report directly to the mayor. Ideally, there would be no more than seven members. The following groups should be represented, with members serving one- year, staggered terms: · the Denton Planning and Zoning Commission · the downtown merchants association · a bank officer (this position would rotate among the four downtown institutions) · the city's Main Street program · the local arts community · a developer active in the downtown Develop a mechanism for evaluating projects. Limited resources require careful prioritizing of initiatives. The task force should develop a framework for balancing resources against impacts to identify those projects with the potential to provide "the biggest bang for the buck." The evaluation process should separate projects with a direct economic or fiscal impact--those that create jobs or generate tax revenues--from those without a measurable effect, such as TIP STRATEGIES, INC. 9 Denton Downtown Development Summary infrastructure enhancements. While the latter are important for increasing downtown's appeal to residents and tourists, their impact on the city's bottom line is less immediate. Projects should also be evaluated in terms of their ability to generate secondary benefits, typically referred to as indirect or induced impacts. These impacts can be thought of as a "ripple effect" in which direct impacts (jobs and tax revenues) produce additional benefits as they circulate through the community. Other important considerations in the evaluation process include the ability of a specific project to leverage private investment. This evaluation should be overseen by the city's economic development staff. Conduct a marketing campaign. Efforts to market downtown must take two forms, internal and external. The internal focus should ensure that Denton's citizens see the downtown as a viable retail center. As an extension of this approach, downtown should also be marketed based on its housing and commercial opportunities. From an external perspective, the downtown can be marketed not only to tourists and visitors, but also to developers and businesses. The business development strategy outlined on page 4 should be integrated with the overall marketing approach. Marketing materials should be developed for each phase of the campaign. The public outreach materials should address how the plan was developed and its purpose, as well as providing detailed implementation plans and timelines in a user-friendly format. A section on frequently asked questions should be included to anticipate public concerns related to potential development. Similar materials should be produced for the development community. In addition to the general information provided in the public outreach materials, the these materials should provide an overview of the community's guiding principles, basic conceptual ideas for different sub- areas, as well as information about how projects will be prioritized and what actions would be required of potential developers. The purpose of this piece is to pique developer interest in the project and to help minimize uncertainty about what the city's expectations are. Make connection between downtown and major employers and attractors. The Denton Downtown Master plan recognizes that the downtown cannot be seen strictly in terms of "the square." The vitality and energy of downtown must capitalize on the city's universities and employers. Both UNT and TWU TIP STRATEGIES, INC. 10 Denton Downtown Development Summary represent natural extensions of the downtown. In this respect, the master plan can be expanded to include transportation options and increased design work along the corridors between the downtown and both universities. Employer involvement in the downtown can be increased dramatically. Many cities similar to Denton have involved their businesses in marketing campaigns. Sponsorships, design competitions, and even real estate absorption by local companies have proven possible. Implement a business development strategy for downtown. The following elements comprise a specific retail and commercial strategy for downtown Denton: Retention and expansion of existing businesses. This may include the relocation of firms from other parts of the city to downtown. Attraction of new businesses. Targets would be established based on available commercial and even retail space. Active (city-supported) marketing of existing businesses. Downtown merchant's association. Property inventory. Chamber involvement in retail business development. Small business assistance to professional service firms. Greater concentration of tourist activity in the downtown, including museums. Festivals with retail-specific opportunities. Background In 2001, the City of Denton hired Fregonese Calthorpe Associates (FCA) to develop a master plan for the city's downtown. The purpose of the plan was to "convert the vision of a vital downtown into a reality." The plan addresses a 440-acre section of the city covering a 60-block area. The study New zoning area includes the Downtown Core (an area that encompass the Denton County Courthouse Square and surrounding blocks), as well as a number of other "sub- areas," including the North and South TIP STRATEGIES, INC. 11 Denton Downtown Development Summary Downtown areas, the Stroud Neighborhood, and the "panhandle" formed by the extension of Elm and Locust from North Downtown to Texas Women's University. The goals and strategies outlined in the plan were developed through "studies and workshops that envision a downtown that functions as a center of community business and culture.''1 The resulting vision for downtown Denton addresses economic vitality (measured in terms of increased jobs, sales tax, and property tax revenues), historic preservation, civic pride, land use, pedestrian-orientation, and aesthetics. An underlying theme is the image of downtown as a neighborhood that contains a variety of activities that appeal to both residents and visitors. The plan outlines several strategies, as well as actions for implementation, both short- and long-term. Major categories addressed in the plan include parking, street and streetscape improvements, transit, and planning and zoning issues. Parking While FCA found that there was an adequate supply of parking for the downtown area overall, they did find some areas with a deficit. Short-term strategies for addressing parking shortages outlined in the master plan include encouraging shared parking2, maximizing on-street parking by using diagonal spaces, and designating a City of Denton Downtown Master Plan (draf0. November 2002. Fregonese Calthorpe Associates, p. 2. Shared parking is a system in which policies and facilities are designed to encouraging the sharing of parking spaces by businesses with complementary needs (such as an office building and a restaurant in a suburban setting), or among similar establishments (such as several merchants along a town square). percentage of spaces in critical areas as time limited. Long-term strategies include planning for future parking needs by beginning the land acquisition process so that adequate lands are available for parking facilities when the need arises.3 In addition, the city should consider methods for encouraging innovative designs for new parking facilities, such as including retail on the ground floor. Future parking needs could be funded through the development of a tax increment financing district or public improvement district. Streets & Streetscape With nearly one-third of the surface area of downtown dedicated to streets, using them effectively was a major focus of the downtown master plan. FCA envisions downtown streets as "multiple-use" facilities, designed to accommodate through traffic, provide access to businesses, accommodate transit users and pedestrians, and encourage sidewalk activities, (such as restaurant seating, advertising, and merchandising). The plan includes an illustrated master street plan, which is intended to "represent the policy decision of what [downtown streets] ultimately should become.''4 Implementation of the master street plan is a long-term strategy, with FCA recommending the completion of 800 linear feet of improvements per year. These efforts should be focused on areas with greatest potential (i.e., those that are most active in 3 FCA estimated that the city should acquire approximately 4 acres of land within the next 8 to 10 years for use first as surface lots accommodating about 400 spaces, then for the construction of multi-level parking structures. 4 City of Denton Downtown Master Plan (draft). November 2002. Fregonese Calthorpe Associates, p.l§. TIP STRATEGIES, INC. 12 Denton Downtown Development Summary Sidewalk & Pedestrian Bikeway Vehicle Vehicle Median & Pedestrian Vehicle Vehicle Buffer Lane Lane Refuge Lane Lane Bikeway Sidewalk & Pedestrian Buffer new investment or economic growth, or where other funds can be leveraged). Short-term strategies related to streets and streetscapes include a review of signage in and around the downtown; the designation of certain streets as "festival streets," which would be closed to traffic during special events; and the development of a plan for the "alley" streets (Austin, Walnut, Cedar & Pecan) that addresses trash consolidation, sidewalk beautification, and parking improvements. Transit The FCA plan also positions transit as an important element in downtown's success. Short-term transit strategies include creating a downtown transit hub with designated "busways' adjacent to the square along Locust, Elm, Hickory, and Oak. Implementing a "fareless square" district-- an area in which people could ride mass transit free of charge--is another method for increasing transit use. Formation of the Denton Transit Authority will provide an important link between Denton's local transit with others in the region and increase the attention focused on transit. Creation of a regional rail station, such as the old Denton Passenger Rail Station, could play an important role in linking regional and local transit services. Finally, the plan recommends that the city continue to investigate various options (such as bus rapid transit) to enhance local transit service. Planning & Zoning Implementation of the downtown plan will require a review of planning and zoning regulations, particularly in the downtown "core." This review should address sidewalk regulations, such as cafe seating, and ordinances or guidelines governing architectural projections, such as awnings and balconies. Steps should also be taken to "jumpstart" the downtown real estate market. These include investing in public infrastructure and amenities, procuring anchor projects, and streamlining the development process where possible. In addition, the plan makes specific recommendations for that will see "major" change, specifically the Denton Core, North Downtown, and South Downtown (Conference & Arts Center). The plan also suggest that the city take planning one step further by participating in the creation of "specific area plans" that outline how each parcel will develop in a given area. The cost of these plans is typically shared with the private sector. Plans are then used to streamline approval process, which TIP STRATEGIES, INC. 13 Denton Downtown Development Summary increases "certainty" for developers and can help bring stability to neighborhoods. Amenities & Events Bringing people and businesses into downtown is the ultimate goal of the downtown master plan. Several strategies are presented in the plan for accomplishing this goal. One of the most straightforward is scheduling festivals and events designed to attract both local residents and visitors, with plans to close designated "festival streets" for major events. Holding a Farmer's Market around square would also increase the number of visitors to the downtown. Long- term strategies for drawing people "Pop Fountain" in Easton Town Center, Columbus, Ohio downtown include the installation of an "active fountain"--a water feature that would cool the air, mask traffic noise, and provide a gathering spot--and the construction of a roundabout at the intersection of Eagle, Bell, and Dallas Drive which would function as the southeast "gateway" to downtown. Other ideas put forth by the downtown task force include creating a downtown business incubator, developing a mixed-use anchor project, and exploring university-based attractions, such as the proposed relocation of the UNT Fashion Collection and the TWU First Ladies' gowns collection. Perhaps the most ambitious element of the plan is the development of an arts and conference center with a hotel. While initial research suggests this as a possibility for the area, the plan recommends that serious consideration of the proposal should begin by commissioning a feasibility analysis funded by city. Development of the center and related facilities could be funded through a number of funding mechanisms, some of which are outlined below. Financing The city must identify the funding options available for each development project in which the city chooses to participate. The selection of a financial tool is based on a number of factors, the most important of which is the level of risk the city is willing and able to take. Thus, a decision requires specific information about the cost parameters of the project or projects in question, particularly with regard to infrastructure improvements and marketing costs. The following is a brief overview of several of the most common financing strategies available in Texas. Tax Increment Financing Tax increment financing (TIF) is a funding mechanism that allows local governments to publicly fund needed structural improvements and infrastructure enhancements within a defined area. Under this strategy, the tax base of the TIF district, which is sometimes called a TIRZ, or tax increment reinvestment zone is "frozen" at the predevelopment level. Property TIP STRATEGIES, INC. 14 Denton Downtown Development Summary taxes continue to be paid, but taxes derived from increases in assessed values resulting from new development--the tax increment-- are used to repay the debt incurred to fund the improvements or to leverage future growth in the district. A TIF can be initiated by a petition of affected property owners, or by the action of a city council. If initiated by city council action, the area can only be considered for a TIF if it "substantially impairs the city's growth,''5 and meets one of three criteria outlined in the Tax Code. In that case, the area would first be designated as a TIRZ, or tax reinvestment zone. There are a number of specific legal provisions that apply to creation of a TIF by either method. Public Improvement District A public improvement district (PID) is a tool that allows the city to levy and collect special assessments on property within the city limits or ETJ to fund infrastructure improvements. Creation of a PID is accomplished by petition, initiated either by the city or by a group of affected landowners. The petition must be signed by more than 50 percent of the affected landowners and property holders. The resulting plan must be updated annually. Municipal Management District A municipal management district (MMD) allows commercial property owners to fund improvements to a defined area through a combination of self-imposed property taxes, special assessments, impact fees, or other charges against property owners in the district. Also known as downtown management districts, MMDs are 5 Handbook on Economic Development Laws for Texas Cities. Volume 1. 2000. Austin, Texas: Office of the Attorney General, State of Texas. p. 110. considered a governmental agency and a political subdivision of the state. Formed through a petition of landowners, with the approval of the Texas Natural Resources Conservation Commission, an MMD is indented to supplement existing municipal services. Creation of a district does not relieve the city from providing services in the area. Bond Issue for Economic Development As a home rule city, Denton's statutory ability to issue bonds for specific purposes must be outlined in its charter. Provided statutory authority exists, cities can issue bonds for economic development purposes, including bonds for certain commercial projects, provided that the building or facility will be leased to a private entity or to another political subdivision or the state. Economic development corporations also have the authority to issue bonds, payable solely from economic development sales tax proceeds. Economic Development Sales Tax Denton has currently committed its remaining one-half cent sales tax to transit. If that commitment should change, the dedication of sales tax to economic development purposes could provide another financing mechanism for downtown development. The Development Corporation Act allows Section 4B tax proceeds to be used for a variety of business development purposes, including projects that are not specifically related to job creation, such as parks and related public space improvements, commercial facilities, and tourism and entertainment venues. Matching Funds/Loans State and federal matching funds are often available for projects that meet specific TIP STRATEGIES, INC. 15 Denton Downtown Development Summary criteria. For example, local funds for highway beautification and transportation demand management projects can often be leveraged with federal funds, such as those available under the Transportation Equity Act for the 21 Century, commonly known as TEA 21. Loan programs, such as the Texas Leverage Fund administered by the Texas Department of Economic Development, are another potential funding method. The U.S. Department of Housing and Urban Development's Economic Development Initiative (EDI) funds are another option currently being pursued by the city in connection with downtown infrastructure projects. should enable city officials to distinguish between initiatives that have a direct impact---on employment or tax revenues-- and those with an indirect impact, such as infrastructure development and beautification. Although the latter are essential to the city's long-term economic future, focusing on those initiatives that can impact the city's bottom line may be a better use of limited resources in the short term. Strategies for retaining current businesses and attracting appropriate businesses should figure more prominently in the city's downtown development strategy. Conclusion While all of the initiatives identified through the work of the task force and Fregonese Calthorpe Associates fit within the city's vision for the downtown, we recognize that there are limits on the resources available to carry them out. Therefore, it is necessary to develop a mechanism for prioritizing the initiatives and for evaluating their impact on the city's economic growth. This mechanism TIP STRATEGIES, INC. 16 Denton Downtown Development Summary IMPLEMENTATION TABLE Adopt structure for implementation Develop mechanism to evaluate projects Evaluate funding mechanisms for each project Review parking-related signage Develop shared parking policy Change selected parking spaces (e.g., diagonal spacing, short-term spots) Acquire land for future parking needs (approx 4 acres) Review parking facility regulations to maximize potential for innovative design (e.g., mixed use) Implement master street plan (800 Designate festival streets and develop street closinq plans Develop and implement plans for "alley" streets to address trash, sidewalks and parking) Designate busways along Locust, Elm, and Oak Implement "fareless square" Construct regional intermodal station (possibly at old Denton Passenger Rail Form Denton Transit Authority Evaluate options for enhancing local transit service, starting with bus rapid transit Review regulations relating to sidewalks, architectural projections, etc. with emphasis on the downtown core TIP STRATEGIES, INC. 17 Denton Downtown Development Summary Streamline development regulations for appropriate projects (could use scoring mechanism to evaluate) Develop list of infrastructure needs in downtown and prioritize Develop schedule of planned festivals and events in downtown area Investigate potential new events to fill in schedule if needed Set up farmer's market along square Explore feasibility of installing an "active fountain" downtown Explore feasibility of roundabout construction Explore feasibility of hotel and conference center construction Identify and prioritize other potential projects Retain and expand existing businesses. This may include the relocation of firms from other parts of the city to downtown. Attract new businesses. Targets would be established based on available commercial and even retail space Actively support marketing of existing businesses. Coordinate with Main Street program Strengthen role of downtown merchant's association Conduct property inventory Expand chamber involvement in retail business development Expand small business assistance to professional service firms Increase concentration of tourist activity in the downtown, including museums Coordinate festivals with retail opportunities TIP STRATEGIES, INC. 18