City of Alpharetta Strategies for Vacant Commercial Property Re-Use Prepared by Atlanta Regional Commission Staff August 2011

Atlanta Regional Commission

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Table of Contents

Introduction

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Project Objective and Timeline

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Site-Specific Alternative Uses

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Other Short-Term Options for Building Occupancy

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Long-Term Strategies for Remaining Sites

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Best Practices for Incentivizing Commercial Building Re-Use

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Building Re-Use Examples from across the Country

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Appendix Materials

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Appendix A: Excerpt from “Strategic Planning for Stagnating Strips” Appendix B: Snapshot of CityPlace Project in West Palm Beach, FL Appendix C: Vacant Property Registration Ordinance, Fulton County, GA Appendix D: Other Ordinances for Vacant Property Registration and Fees Appendix E: Vacant Property Program Description and Application, City of Falls Church, VA Appendix F: Program Agreement and Report, City of Forest Grove, OR Appendix G: Beaufort Redevelopment Incentive Program Ordinance, Beaufort, SC Appendix H: Gwinnett Place CID, Proposed Mixed Use Redevelopment Ordinance Appendix I: Photo Inventory of Seven Sites

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Introduction The City of Alpharetta is a lively community with an active downtown and beautiful, wellpreserved residential neighborhoods. The City is home to many large employers, evident by its day-time population that swells to almost three times the number of actual residents. Due to its thriving nature, vacant properties are minimal. However, a few established commercial properties have remained vacant for several years, and others have never been occupied due to the economic recession. The City of Alpharetta sought assistance from the Atlanta Regional Commission in February 2011 as part of the Community Choices Implementation Assistance Program. The City’s application requested help with researching a select list of vacant commercial properties and determining potential uses for them. Additionally, the City requested general information on vacant property strategies and incentives for re-use, along with effective sample ordinances that address the issue. Some benefits of programs and incentives to re-use vacant commercial property include: • • • • • • • •

Attracting new business and business expansions Signaling to the business community that their needs are supported by the City Providing space at lower costs for start-up businesses and local community groups Saving costs on new building development Taking advantage of the city’s existing infrastructure and transportation corridors Preserving undeveloped land Creating opportunities for historic preservation and maintaining community character Avoiding blight

Project Objective and Timeline Objective The objective of this project is to provide the City of Alpharetta with information and recommendations on seven specific vacant commercial sites, as well as general strategies to manage other vacant properties. This report is comprised of local research throughout Alpharetta as well as best practices research from across the country. The goal is to provide the elected body with more information on which to make decisions as to how the community may deal with this issue. The best practices portion of this report is by no means a set of policy recommendations, but merely for informational purposes. Timeline ARC Community Choices staff met with the elected body in April 2011 to kick off the project and receive input before the project began. The ARC team then met with city staff to discuss the project objective and visit seven sites, for which specific alternatives for their re-use were requested. Community Choices staff worked with staff from ARC’s Land Use Division to 3

determine the site-specific recommendations and find resources for policies regarding vacant property. Community Choices staff utilized the CoStar commercial real estate data service to obtain current data on the seven sites. The ARC team also researched national trends in vacant commercial property re-use and interviewed several peer local governments. Some of the City of Alpharetta’s planning and development-related documents were also reviewed, so as to provide context for the recommendations and policy ideas. The project also included a comprehensive review of several Alpharetta documents and plans. City documents reviewed include: • • • •

City of Alpharetta Comprehensive Plan 2025 City of Alpharetta Downtown Development Plan City of Alpharetta Downtown Incentive Zoning Package North Point Activity Center Livable Centers Initiative (LCI) Study

Interviews conducted with local governments, a CID, and other entities from across the country offered invaluable examples and insight into strategies for vacant property re-use. Departments and organizations interviewed include: • • • • • • • • • • • •

Planning and Development Department, Phoenix, AZ Economic Development Division, Madison, WI Real Estate Assessment Office, Falls Church, VA Office of Economic Development, Forest Grove, OR Economic Development Corporation, Prince George’s County, MD Department of Permitting Services, Montgomery County, MD Office of Civic Investment, Beaufort, SC Planning Department, Los Angeles, CA Gwinnett Place Community Improvement District, Gwinnett County, GA Downtown Development Authority, Rome, GA Community Development Department, Woodstock, GA Planning Department, Longview, TX

Information from these interviews served as the basis for the best practices section of this report. Full interview transcripts are available upon request from the Atlanta Regional Commission.

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Site-Specific Recommendations Site 1: Former Lincoln Mercury Dealership Address

1475 Alpharetta Hwy

Zoning District

C-2

Lot Area

10.3 acres

Building(s) square footage

72,431

Gross leasable area (sq ft) Price

72,431

Street frontage Parking

466 ft on Alpharetta Hwy (1 curb cut) 130 surface spaces

Year built

1990, renovated 2001

Sale history

$8.125 mil in 2006

$4.9 mil ($67.65/sf)

Description: This former auto dealership property includes five separate buildings. Two building lie just behind the ones shown in this photo and are former service buildings. A potential challenge with this lot is its dimensions. It has been vacant for a number of years and has no previous uses since it served as an auto dealership. Access: The property fronts Alpharetta Highway, along which MARTA bus route 185 travels. Access to the site could potentially be provided via Haney Road (from the rear of the lot). Surrounding Uses: North Fulton Regional Hospital, office buildings for hospital, medical offices, Harry’s Farmers’ Market, Northpoint Mall (5 minute drive), horse farm on parcel to the immediate north Future Land Use (as designated in Alpharetta Comprehensive Plan): Retail Sales & Services. Adjacent future land uses include Retail Sales and Services, Professional Offices, Parks/Recreation/Open Space, Office Center, and Low Density Residential. Alternative Use 1 (Long-Term) Potential Use: Senior residential rental facility with incorporated recreational facilities and outdoor garden Benefits • Help Alpharetta achieve its goal of becoming a life-cycle community • Prepare City for forecasted aging of population that will occur over the next 20 years (15.4% of residents were approaching retirement age in 2008)

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Proximity and access to downtown Alpharetta will bring customers to the downtown area Rental facility will appeal to seniors who are not interested in home ownership Outdoor garden could provide space for seniors to enjoy gardening hobbies. Space could also be shared with the community, which has a demand for garden plots evidenced by the waiting list for garden space in Wills Park.

Context • MARTA bus route 185 along Alpharetta Highway at the front of the property will give seniors access to downtown Alpharetta and other services without the need to operate a car • Proximity of Wills Park would allow seniors to take advantage of recreational opportunities and chances to connect with community members • The site is large enough to construct rental housing, indoor recreation buildings and outdoor recreation space • An easement could be created through the property to the north to allow easy access from the site to Wills Park Zoning Considerations • Use as a ‘for-rent’ dwelling will not require a change in the C-2 zoning, but will need approval by City Council as a conditional use • Indoor recreation facilities are allowed by-right, however, outdoor recreation facilities are a conditional use, which would also need approval Alternative Use 2 (Short-Term) Potential Use: Church and Sunday school Benefits • Churches are gathering places for the community and often provide critical services such as organizing volunteer events and services to seniors. Context • Re-using large buildings and properties for churches is a popular retrofit occurring across the country. • This use addresses the challenge of this particular site being too large for most retail establishments. It allows flexibility for a church to have a sanctuary, chapel, administrative offices, Sunday school and other church-related or community-related facilities. • Site has overflow parking for important church holidays or events that draw most of its congregants at one time. Zoning Consideration • This use would need to be approved by City Council as churches and synagogues are a conditional use in the C-2 district. 6

Alternative Use 3 (Long-Term) Potential use: Assisted living facility and senior-oriented medical offices Benefits • This use would address the need for senior services for the aging population in Alpharetta. It would also provide a facility for seniors in need of daily care. Context • The site is surrounded by several medical offices and is only blocks from North Fulton Regional Hospital. The proximity of supportive services and medical offices would keep residents of the facility close to home, not trying to navigate driving or using public transportation. Zoning Consideration • This use would not require any change in zoning to C-2 as “assisted living, congregate housing” and “clinic” are permitted uses Additional Alternatives In several site visits, ARC staff took note of several vacant buildings to the east of this particular parcel. The city might consider preparing an incentive for a party to purchase adjoining vacant properties and develop them in such a way that would be coordinated and better assure longterm viability. An existing incentive the city could use is the downtown incentive overlay. This could be expanded to cover the entirety of the vacant properties under the condition that they be bought and redeveloped as one project.

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Site 2: Alpha Park Property Address

216-220 South Main St

Zoning District

C-2

Lot Area

5 acres

Building(s) square footage available

20,000; 1378; 1850; 7700

Gross leasable area (sq ft) Rent (per sq ft per year) Street frontage

58,000 $6.98

Parking

388 feet on Main St. (2 curb cuts) 160 surface spaces

Year Built

1970

Description: This building is occupied by an antique shop, a temporary furniture store, and other assorted retail stores. The site includes a large, continuous parking lot that is used as a cut-through from the surrounding streets and neighborhood. It is located at the edge of the downtown district and should be developed according to the goals and vision of the Downtown Development Plan. Access: MARTA bus route 140 along Main Street and Alpharetta Highway, near Haynes Bridge Road through Devore Road, about one mile from GA 400 Surrounding Uses: Residential neighborhoods to the south; retail uses at Alpharetta Crossing to the east, Publix to the north; senior multifamily housing to the north Future Land Use: Retail Sales & Services. Adjacent future uses include high density residential, office center, transportation/communication/utilities, and the central business district Alternative Use 1 (Long-Term) Potential use: Mixed-use development including townhomes and retail fronting South Main and Devore streets Benefits • Fulfills strategy from the Comprehensive Plan to provide mixed use and higher residential densities near downtown Alpharetta as well as increasing housing diversity • Complements the residential use behind the property and the commercial and retail uses along South Main Street Context • The cut-through traffic suggests the high visibility of the parcel that could be taken advantage of with retail fronting Devore Road and South Main Street • The retail portion of the development could include a small front parking lot that provides immediate access to shops and offices. Remaining parking could be 8

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accommodated in a larger rear lot. A smaller setback that still accommodates parking would respect the character of the nearby downtown district where setbacks are small. According to the Downtown Development Plan, resident preferences for retail include private postal center, tea room, open air market, high end hardware, sporting goods, general store, gift shop, deli, boutique, and art gallery.

Zoning Considerations • This use would require a zoning change to allow for-sale dwellings. Alternative Use 2 (Long-Term) Potential Use: Mixed use development with senior rental housing and retail fronting South Main and Devore streets along with housing above retail Benefits • Adds to housing diversity by offering residential on top of the retail as well as acts as an incentive for development • Meets the “increasing need for retirement and elderly housing” as 15.4% of Alpharetta residents were close to retirement age in 2008 (Alpharetta Comprehensive Plan). Context • This location would be convenient for retirement because it is close to the downtown area and has access to a MARTA bus line along South Main Street. It is also within walking distance of the downtown, a Publix, pharmacy and many more shops. • Discussion of parking in Alternative Use 1 also applies here. Zoning Considerations • Senior rental housing would need approval by the City as a conditional use. • New for-sale housing on top of retail is not permitted in the current zoning district and would require approval by some other process. A mixed use zoning district could be applied effectively to this area to guide uses, design components and access. Alternative Use 3 (Short-Term) Potential Use: Re-use of the current building for a second-run or independent film theatre and community rooms Benefits • The building could be re-used instead of demolished • These uses are among those stated in preferred civic and entertainment uses according to the Questionnaire Analysis Updates of the Downtown Development Plan • Adds to Alpharetta’s sense of place by being easily visible as a cultural amenity from a well-traveled corridor • Access from a MARTA bus route and multiple well-traveled highways

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Context • Independent theatres occupy about 20,000 square feet for five screens. The remainder of the space in this building could be used for a community center. • The current site offers enough parking for this use Zoning considerations • Theatre is a permitted use • Community rooms may be a permitted use under “club, association or lodge” as a semipublic use Additional Considerations: Depending on the size of the independent theatre, other additional uses that are desired by the community for entertainment includes a live theatre, museum, and an indoor concert venue. A great model for an independent theatre and community center is the AFI Silver Theatre in Silver Spring, Maryland, which has become a great asset to that community after being in a state of disrepair for many years. More about the theatre can be found on their website: http://www.afi.com/silver/new/about/about.aspx.

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Site 3: Alpharetta Crossing Anchor Space Address

11770 Haynes Bridge Rd

Zoning District

C-2

Lot Area

11 acres

Building(s) square footage available

44,664

Gross leasable area (sq ft) Rent

95,504

Street frontage

Negotiable

Parking

837 ft on Haynes Bridge; 322 ft on Old Milton Pkwy 483 surface spaces

Year built

1989

Description: This site was formerly anchored by a grocery store, which is no longer a feasible option because rear access is problematic. There are a total of 22 stores in the development including restaurants, retail, services, and a very popular Starbucks on the north end of the lot. The site includes a few developed outparcels and 483 parking spaces. It is in close proximity to downtown and should take into consideration the Downtown Development Plan. A new public library is planned for the northeast corner of Haynes Bridge and Old Milton Parkway, diagonal from this site. Access: Frontage along, and access to, Haynes Bridge Road and Old Milton Parkway. The site lies approximately 1 mile from GA 400. Surrounding uses: Twenty-two retail stores and restaurants in the development, senior rental housing to the north; townhouses across Haynes Bridge Road, big box retail on the other side of GA 400 Future Land Use: Retail Sales & Services. Adjacent future uses include Retail Sales & Services, Office Center, High Density Residential, Professional Offices, and Central Business District. Alternative Use 1 (Short-Term) Potential use: Family recreation including movie theatre and book store Benefits • The use is inclusive of uses envisioned by the community in the Questionnaire Analysis Updates for the Downtown Development Plan • This use would help build up the downtown area and draw community members

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Context • The site includes ample parking, ideal for entertainment uses • The design of the space also lends itself to a use that does not require windows on many sides • The movie theatre could be independent or second-run, due to the space’s size Zoning Considerations • Theatre and book store are permitted uses Alternative Use 2 (Short-Term) Potential use: For-profit, higher education institution Benefits • Alpharetta has existing for-profit institutions, suggesting this is an area with demand for this use. • Many for-profit institutions are expanding at this time, looking for new campuses. Context • The building is in a development with several amenities and is in close proximity to the downtown, which is the type of location that for-profit education institutions seek out • Easy access to GA 400 • University of Phoenix spaces range from 15,000 square feet to more than 200,000 square feet • Existing institutions in the area, such as DeVry Institute, Chubb Institute, or Reinhardt Institute, may want to expand and use this space Zoning Considerations • A commercial school is permitted in this zoning district

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Site 4: Henderson Commons Address

735 North Main Street

Zoning District

C-1

Lot Area

7.35 acres

Gross leasable area (sq ft) Street frontage

32,872 sq ft

Parking

306 ft and 2 curb cuts on North Main and 1 curb cut on Henderson Pkwy 200 surface spaces

Year built

2008

Out-parcels

.9 and .6 acre

Description: This development is in great condition and has never been occupied. It is set back far from the road and is difficult to see behind landscaping installed in the parking lot. The site includes an enclosed detention basin adjacent to the south side of the building. The development was intended to house small offices and retail space and is currently bank-owned. Access: Frontage along Highway 9 Surrounding Uses: Low density residential neighborhoods, retail strip malls, undeveloped land Future Land Use: Retail Sales & Services. Adjacent future uses include Retail Sales & Services, Medium Density Residential, and Parks/Recreation/Open Space Alternative Use 1 (Long-Term) Potential use: Private preschool or other early childhood educational use with development of outparcels into day care, dry cleaners, and small café Benefits • Having a private educational establishment will offer residents a competitive option for educating their children • The large setback is ideal for safety for an educational use • Clustering uses (educational with small service establishments) may increase visibility and desirability for entire site Context • The location of the property is convenient to downtown Alpharetta, Windward Parkway and many residential neighborhoods • The outparcels located on the lot could be developed into services that are convenient for parents, such as a dry cleaners, café, or small day care for children that are not yet of school age 13

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Montessori schools, which are private schools, range from 7,000 square feet to 35,000 square feet with additional outdoor space for playgrounds If the use were changed to an elementary or middle school use, the development would have a great surplus of parking spaces. The current number of spaces is 200, while the required number of spaces for this category of school is “one space for each classroom and administrative office plus 5 spaces for visitors.” This would allow some of the parking lot to be redeveloped for a playground as well as services convenient for parents.

Zoning Considerations • All uses are permitted uses under the current zoning district Alternative Use 2 (Short-Term) Potential use: Medical offices Benefits • Takes advantage of a trend occurring around the country - transforming underused properties in suburban locations into annex or satellite locations affiliated with larger hospitals • Annex locations target patients with less serious medical issues who prefer medical services closer to home Context • The current extra parking spaces allows for 7,000 additional square feet in medical offices • The location may work well for a satellite office for North Fulton Regional Hospital Zoning Considerations • Clinics are a permitted use under the current zoning

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Site 5: Sydney Place Address

4915 Windward Pkwy

Zoning District

C-1

Lot Area

1.91 acres

Building(s) square footage

9,328

Gross leasable area (sq ft) Street frontage

9,328 sf

Parking

354 ft on Windward Pkwy with 1 curb cut Unfinished

Year built

2009

Description: This site is unfinished and bank-owned. It was originally intended for retail uses. Access: Windward Parkway close to Highway 9, access to MARTA bus line 143. Surrounding Uses: Townhomes and schools, park to the north; Lowe’s and Kroger, other stores and restaurants, bank in adjacent development Future Land Use: Retail Sales & Services. Adjacent future land uses include Retail Sales and Services, Residential Estate, Very Low Density Residential, Low Density Residential, and Parks/Recreation/Open Space. Alternative Use 1 (Short-Term) Potential Use: Farmer’s Market on a week day Benefits: • Local gardeners and area farmers can bring their produce to sell • Provides a productive interim use until the site is finished and economic situation improves • Existing traffic around site would provide customers for market • Farmer’s markets are starting up in cities across the region to provide healthy food options to residents Context: • The Downtown Alpharetta Farmers Market operates on Saturdays. Having a farmers market in this location on a day during the week, such as Wednesday from 12 to 7 might give buyers a day during the week to buy local farm products. There are 47 vendors in the Downtown Alpharetta Farmers Market, demonstrating there is strong demand in the community for local produce.

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The Sydney Place site is unique because it remains unfinished. Unfortunately, it is bankowned and thus will remain un-paved until the property is bought from the bank. As a short-term use, the city could occupy the site with a temporary use that doesn’t require paving the parking lot.

Additional notes on this Alternative Use: The city should try to work with the bank to finish paving the property to make it appealing to tenants or buyers.

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Site 6: Stonewalk at North Point

Description: This property was originally intended to house retail establishments of varying sizes. One building in the development offers space for a restaurant with outdoor dining. The restaurant owner is still interested in the development; however, it needs an anchor store. The property is in great condition and has never been occupied. The property abuts the boundary of North Point LCI study, which should be taken into consideration.

Address

970 North Point Drive

Zoning District

PSC

Lot Area

2.15 acres

Building square footage available A (pictured) GLA A

20,013

Building square footage available B (anchor space) GLA

16,092

Rent/sf/yr

$27.50

Street frontage

Parking

639 ft on Northpoint Pkwy; 315 ft on North Point Dr w/ two curb cuts; 265 ft on Georgia Ln 130 surface spaces

Year built

2008/2009

Sale history

$7.09 million in 2011 in foreclosure sale

20,013

16,092 sq ft

Access: One quarter mile from GA 400 Surrounding Uses: Four hotels, offices and national retailers, Best Buy, JoAnn’s, jewelry store, bank, North Point Mall, restaurants Future Land Use: Retail Sales & Services. Adjacent future uses include Retail Sales & Services and Office Center. Alternative Use 1 (Short-Term) Potential use: Home décor and home furnishings retail development Benefits • Provide retail options for Alpharetta residents and visitors through the clustering of stores that center around a hobby or theme, engendering a network of stores that are attractive as one destination • Potential to emerge as a retail destination with several related stores within walking distance • Capitalize on traffic around nearby North Point Mall and adjacent restaurants 17

Context • A JoAnn’s Fabric store is located directly across the street, suggesting that the area attracts individuals interested in home projects, crafts and improvements. Complimentary and supportive uses could include a create-your-own mosaic store or self-design ceramic-painting store. • While a Home Decorators Collection store was intended to occupy the anchor space, and with several home furnishing stores in Alpharetta, there is a potential niche for a furniture consignment store for this space. The resale industry has grown 7 percent over the past two years with furniture resale making up a larger part of the industry (National Association of Resale Professionals). • Another possible anchor store would be a Restoration Hardware or similar use, which range in from 15,000 to 35,000 square feet of space. This use might connect with a home improvement or hobby-related retail cluster. Zoning considerations • These uses should qualify as the “Retail Sales and Services Establishments not otherwise listed for this zoning district as a permitted or conditional use” or as a “Retail Establishment, Mixed Sales” under the current zoning Alternative Use 2 (Short-Term) Potential use: Retail and services catering to hotel clientele Benefits • This use takes advantage of the proximity of five hotels within a half mile by offering products and services that visitors would use including gift shops, a stationary store, wine bar, florist, salon and spa, clothing boutique for special occasions, and a dry cleaners and alterations store. Context • This development is not easily visible from a major intersection, which is possibly why it struggles more than other retail in the area. Making it a cluster of related retail products that can differentiate itself enough from North Point Mall, yet attract those shoppers as well as the hotel clientele, will make it more viable. Zoning Considerations • These uses are either permitted by right or as a conditional subordinate use under the current zoning.

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Site 7: Former Home Depot Expo Address

10700 Davis Dr

Zoning District

L-I

Lot Area

6.66 acres

Building(s) square footage

87,876

Gross leasable area (sq ft) Rent

87,876 sq ft

Street frontage

Negotiable

Parking

763 on Davis Dr w/ 1 curb cut 200 surface spaces

Year built

1999

Description: This is the site of a former Home Depot Expo. There are no windows in the building, except at the entrance. The site includes 200 parking spaces. The property abuts the boundary of North Point LCI study, which should be taken into consideration. Access: Less than a quarter mile to GA 400; the property has multiple access points, including Westside Parkway and Mansell Road; bus service on North Point Parkway and Haynes Bridge Road (MARTA route 140) Surrounding Uses: Hotels, restaurants, Sam’s Club, auto dealerships, Lowe’s, office park across Westside Parkway, North Point Mall within one mile, senior apartments within one mile Future Land Use: Retail Sales & Services. Adjacent future uses include Retail Sales & Services and Office Center. Alternative Use 1 (Short-Term) Potential use: Sports recreation center Benefits • A sports center would provide additional recreational space for active Alpharetta residents. Activities and classes offered though the City’s Parks and Recreation Department are often full. • Because the space is very large, more than one type of sport could be accommodated. • Proximity to GA 400 and nearby arterials allows for easy access for consumers from Alpharetta and the North Fulton area. Context • The space size is enough to accommodate one or more of the following uses: indoor tennis clubs are around 60,000 square feet, indoor soccer businesses between 20,000 to 30,000 square feet, or indoor skate park at between 10,000 to 50,000 square feet. 19

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Its proximity to Sam’s Club and restaurants is convenient for grocery shopping after exercising or grabbing a meal after a youth club tournament. The building is also near the Alpharetta Family Skate Center. By clustering a similar use near the skate center, the viability of the new use is increased.

Zoning considerations • These uses would be permitted as indoor recreation facilities under the current zoning. Additional notes about this Alternative Use: It may be useful to conduct a market study or survey of the community members to discover what kind of indoor recreational facility they would prefer. Alternative Use 2 (Short-Term) Potential use: Private gym Benefits • Large, private gyms such as these cater to all kinds of interests with classes in Pilates, yoga, martial arts, rock climbing dance, swimming, spin class, tumbling, cheerleading, gymnastics, senior exercise classes, child day care and more. Businesses such as these are throughout Georgia and may be interested in remodeling this building. A list of these multi-purpose gym facilities can be found here: http://www.usgyms.net/georgia.htm. • Convenience of adjoining uses for both adult and child recreation in a one-stop destination when the family wants to exercise • Surrounding uses (Sam’s Club, other recreation facilities) support this type of use. Context • YMCA’s built on a similar model occupy spaces in excess of 60,000 square feet and L.A. Fitness centers average about 45,000 to 50,000 square feet of space • The remainder of the space could be dedicated to a children’s exercise program or play zone. An agreement could be formalized between the two businesses to share common space that could be accessed from either side. Zoning Considerations • This use would be permitted as indoor recreation facilities under the current zoning

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Other Short-Term Options for Building Occupancy In general, short-term uses may be atypical in light of the originally intended use for a building. Some buildings are re-used as health clinics, a campaign office, auction house, county library, or a swap meet/consignment sale. The City of Alpharetta may consider allowing and encouraging “out of the box” and short term uses until circumstances for a long-term buyer or tenant arise. It is a temporary solution that presents the benefits of occupancy while the market for building space recovers from oversupply. Short-term uses can be found by looking into existing community networks for businesses with short-term needs or businesses that can only afford lower rent and negotiable lease terms that have become available during the economic recession. Alpharetta can engender support for these short-term uses by making the links between building owners and potential tenants and encouraging a non-traditional approach to building occupancy. Popular short-term or temporary uses that are surfacing across the country include business incubator spaces and art incubators and galleries. Business incubator space Business incubator spaces are useful in pooling together office resources that start-ups can take advantage of through a membership fee. Business incubators have also worked for businesses sharing resources for entering the retail and restaurant industries. The City of Buffalo, NY, together with the Buffalo Economic Renaissance Corporation re-used a downtown building to create the Beverly A. Gray Business Incubator Project to help sustain local business and revitalize the city’s East Side. The space was formerly a library of 7,450 square feet which can now host up to 8 leasable offices. The remodeling of the building was also an opportunity to use local labor and materials whenever possible. Funding came from the Buffalo Economic Renaissance Corporation and the federal government. Another business incubator with great success is the Chattanooga Hamilton Business Development Center that is owned by the county and managed by the Chattanooga Area Chamber of Commerce. The 125,000 square-foot space comes from a former ceramic manufacturing building and now houses the Small Business Resource Center, a library, and computer and video centers for free. Free services include business planning and Business Development Center renovation of the former Scotch management consulting along with networking 3M ceramic manufacturing facility. Photo credit: Nooga.com opportunities and seminars. The space also includes an office for traveling business people with standard office equipment for rent by the day, week, or month. More information is available here:

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file:///I:/Community%20Choices%20Implementation%20Assistance%202011/Alpharetta/Busin ess%20incubator%20examples/smallbusincubator.asp.htm The University of Central Florida Business Incubation program has many incubators in the greater Orlando region. Their location in Orlando opened in partnership with the City of Orlando and covers 6,000 square feet. Business incubation in that city has contributed to the start up of over 130 businesses, 1600 jobs, and $500 million in annual revenue. They also believe that most of the businesses they helped will stay in the community and that their program services greatly reduce the risk of closing business. More information is University of Florida Business Incubator in Orlando. Photo available here: credit: www.incubator.ucf.edu file:///I:/Community%20Choices%20Implementatio n%20Assistance%202011/Alpharetta/Business%20incubator%20examples/UCF%20business%2 0incubator.htm Art displays, galleries, and live-work space for artists The City of Stone Mountain, GA, opened an arts incubator space in October 2010 to help revitalize their downtown. The City used a HUD grant to subsidize the cost of the space and receives 30 percent of artists’ sales plus $50 monthly rent. Some new businesses that have moved downtown say that the art spaces were part of their decision. More about the program can be found here: http://www.artstation.org/arts%20incubator.htm. Another successful art incubator space is the Art in Storefronts Program in San Francisco. This program takes the work of local artists and displays them in vacant storefronts. This draws locals and visitors to visit the artwork and stimulate the local economy. It also adds cultural richness to their neighborhoods. More details about this program can be found here: http://www.sfartscommission.org/CAE/art-in-storefronts/art-in-storefrontsnews/2011/04/11/art-in-storefronts-returns-to-central-market/.

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Long-Term Strategies for Remaining Sites To address the long-term re-use of vacant commercial properties, the City of Alpharetta should incorporate a goal to re-use their existing buildings and properties into their comprehensive plan.1 Ideal sections for amendment to the Comprehensive Plan are: • •

Chapter 4: Natural and Historic Resources Element Strategies (Sections 4-9 to 4-10) Chapter 10: Natural, Historic, and Scenic Resources Goal strategy section (Section 10-4)

These sections should incorporate a statement that supports commercial property re-use over development of vacant land. It could also be included as a strategy that supports the City’s goal to preserve 20% of its land as “permanently protected green space.” Long-term strategies should accompany this goal in the comprehensive plan, such as passing policies that incentivize redevelopment for commercial properties. For long-standing vacant buildings, holding a public visioning process to come up with larger goals for re-use will help make re-uses more viable. This process is part of three strategies to redevelop commercial property consisting of the creation of sub-districts for desired activities; re-allocating uses based on market analysis; and ensuring that zoning supports the vision. Details on these strategies are provided in Appendix A. The City of Alpharetta has a long history of supporting its business community and coordinating with other economic development partners. Existing economic development entities include the City’s Office of Economic Development, Alpharetta Development Authority, Greater North Fulton Chamber of Commerce, the Development Authority of Fulton County, and the North Fulton Community Improvement District. As much as possible, Alpharetta staff should promote the re-use of the vacant commercial properties through these entities. Specific ways that the City can partner with the Greater North Fulton Chamber of Commerce include: • •

• • •

Assure that vacant properties are listed on their available real estate link Partner with a Chamber of Commerce event and the building owner to sponsor a networking event in the vacant space and have a city representative share incentives and properties available Advertise vacant properties in the Chamberlink, the weekly e-newsletter with relevant city incentives Advertise short-term rental uses of space in the “Keep it in the Chamberhood” Advertise properties and/or incentives on GNFCC website homepage

The Gwinnett Place Community Improvement District facilitates bringing together prospective business and city staff or members of their Chamber of Commerce. Having these development entities knowledgeable of available properties and supportive of re-using properties is a crucial component of adaptive re-use.

1

McLaughlin, Sara Beth (2008). Large-Scale Adaptive Re-Use: An Alternative to Big-Box Sprawl. University of Pennsylvania Scholarly Commons. (p. 69-70)

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Alpharetta can encourage the development of new community improvement districts (CIDs) along corridors that are especially struggling with commercial vacancy. The CIDs can then levy special taxes or employ tax allocation districts (TADs) to fund projects to improve the entire corridor, including creation and implementation of a master plan, coordinated special events, and capital improvements to the streetscape. In the case of redevelopment, there is the need for a public/private partnership between the CID and local government to coordinate policies, programs, and fiscal priorities to see a project through.2 An example of this kind of success is City Place in West Palm Beach, Florida. It is an open-air, mixed use development anchored by an IMAX, Publix grocery, Barnes and Noble, and Macy’s and also features the preservation of an old theatre. Jobs, investment, and other benefits from this redevelopment of a suburban business district can be seen in Appendix B. As previously mentioned, inventory of vacant commercial property is extremely important in order for the City to successfully advertise CityPlace of West Palm Beach, FL. Photo credit: available properties. Many cities have passed www.cityplace.com ordinances that require owners of properties or a bank receiving the property in foreclosure to register the property with the City. An example of such an ordinance from Fulton County is provided in Appendix C. A searchable database and links to all vacant property registration ordinances in the country can be found here: http://www2.safeguardproperties.com/vpr/city. Once Alpharetta has this inventory, they can advertise the properties as recommended above. In addition, the City can develop its own searchable database on their website, or simply list the properties available. Several cities make this a regular practice, and it is another opportunity to offer highlights about Alpharetta and why businesses should locate there. An example of a simple list of properties comes from a Fort Myers, FL real estate website: http://www.greaterftmyers.com/fort-myers-commercial-property.php. An example of a searchable database of available commercial properties is the Baltimore City County, MD website through Showcase.com: http://www.showcase.com/Maryland/Baltimore-CityCounty_Business-Property-for-Lease. Many cities have passed ordinances to ensure that the owner of vacant property maintains the property so that it does not deteriorate, and in some cases, places a fee on the property for vacancy. Peachtree City, GA, enacted an ordinance that ensures former tenants allow new tenants to lease the space. An additional strategy for vacant property re-use is requiring a plan for re-use from a retailer and an escrow account to implement the re-use in case of foreclosure. 2

Booth, Geoffrey, et al. Ten Principles for Reinventing Suburban Business Districts. Washington, D.C.: ULI–the Urban Land Institute, 2002.

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Sample ordinances available in Appendix D include: Vacant property registration and fees ordinance of Wilmington, Delaware; Requirement that property owners to place vacant space on the market from Peachtree City, GA; and “Big Box Ordinance” requiring a plan and escrow for re-use from Buckingham Township, PA. A useful resource reviewed during this report is the “Strip Corridor Redevelopment” publication that reviews strategies and funding opportunities for cities and counties in Georgia. This document is available from the Department of Community Affairs at this location: http://www.dca.state.ga.us/development/PlanningQualityGrowth/programs/downloads/StripC orridorRedevt.pdf.

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Best Practices in Incentivizing Reinvestment in Vacant Commercial Properties The following section of the report describes programs or incentives from across the country that incentivize commercial building re-use. The description includes an overview, lessons learned, and the program’s success. Overall, many programs and incentives are new or have undergone adaptations. This is due to vacancy in the program locations evolving from a problem of the past in older downtown locations to present-day problems surrounding the closing of big-box stores, oversupply of building types, and the impact of the economic recession. A pattern that emerged during research is the importance of marketing the programs to the development community. Those strategies require inventory of vacant buildings and advertising strategies ranging from posting the inventory on the city website to dedication of staff or an office to its promotion. Inventorying the properties with pictures and descriptions will make the information readily available for general promotion, pursuing new owners and tenants, and being able to recommend the space in anticipation of development proposals. Another emerging trend is flexibility either in zoning or development fees and requirements, which address the challenges of adhering to building codes, access standards, parking requirements, etc. Oftentimes an ordinance or committee is set up to relax normal development standards under qualifying circumstances to meet concerns for safety and access while bringing re-use costs within budget. The City of Alpharetta already employs a few incentive programs in targeted areas of the city to direct desired redevelopment. This includes the resolution passed in December 2010 to incentivize development and job creation; the Green Construction program; and the Downtown Incentive Zoning Package. This demonstrates the City’s progress toward implementing their planning goals. The City can build on these incentives by considering development of any of the programs included here.

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Adaptive Reuse Program

Phoenix, AZ

Type: Administrative, technical Overview: This program offers several policies to accommodate building re-use. Incentives are offered depending on a building's eligibility for one of three tiers determined by its square footage. Each tier can qualify from among 35 incentive policies that include administrative and technical priority assistance as well as exceptions to and waivers of development regulations. Examples of the policies include: dedicated staff contact for the project; reserved space on the Public Hearing Agenda for variances and use permits; concurrent reviews of site, civil and building plans; use of the International Existing Building Code to provide relief from strict code provisions; dismissal of formal plan submittal process for a change of occupancy; permission for building vacancy for up to three years without need for a new Certificate of Occupancy; reduction in the number of required parking spaces; and allowance of existing driveways to remain without modification unless on an arterial or collector street. Lessons learned: The city benefits from this program by developing a culture among city staff and design professionals that makes building re-use the norm instead of the exception. Program Success: Currently underway, “The Corner on 7th” is the redevelopment of a 70-year-old office and retail building, which qualifies as a Tier 2 project. The building will become a retail and restaurant venue with outdoor dining. The project took advantage of the program primarily through flexibility in zoning development standards such as fewer trees, elimination of the requirement to widen the existing alley right-of-way, working with neighbors to locate the refuse enclosure, and a heightened level of communication with staff. Resources: • Adaptive Reuse Program website: http://phoenix.gov/development/aboutdsd/s ervicesandprograms/arp.html Contact:

Erin Andres, AICP, Project Manager City of Phoenix Planning & Development Department Office of Customer Advocacy 602-534-9051 [email protected] 27

Corner on 7th under construction. Courtesy of City of Phoenix.

Completed re-use of office turned veterinary clinic. Courtesy of City of Phoenix.

Revolving Loan Fund

Madison, WI

Type: Administrative, financial Overview: Qualifying businesses may apply for a loan from this fund. Loans are typically amortized over 5 to 7 years with a balloon payment at the end, which gives the city its source to make new loans. They are generally subprime and range from $50,000 to $250,000. In the past, they have allowed an amortization schedule of 10 to 15 years. The program was created and is run by city staff. The program was originally funded by selling a piece of city-owned property and use of general funds for a total of approximately $1,000,000. When the program was in high demand, the City added $800,000 to the fund. Lessons learned: A unique component of this revolving loan fund is lending with "end loans," which means that the city does not close on the loan until the construction of the project is complete and other requirements have been met, such a percentage of space dedicated to minority-owned business. This reduces the amount of work and risk for the city because they do not monitor progress of construction or completion of the requirements. The loan is not assured until a city inspector follows up at the end of construction and sees that all requirements were met. Program Success: The Revolving Loan Fund was established in 1989 to address vacant commercial properties in Madison's downtown area. Because of its success in addressing 30 vacant properties, the program was expanded to the whole city. More recently, there was a successful renovation of a former tobacco warehouse into lofts in the older suburbs of Madison. The City provided a $450,000 loan, which is an exception to their policy (usually a maximum of $250,000) and added assistance from their TIF. The lofts have approximately 100 units.

Tobacco Lofts. Photo credit: Urban Land Interests

Only once in the program's history has a borrower defaulted on a loan. However, the city went against the recommendation by the fund’s overseer not to give the loan because there wasn't sufficient parking, yet the political leaders at the time chose to make the loan. Resources: • Madison Capital Revolving Fund: http://www.cityofmadison.com/planning/caprevfund.html Contact:

Joe Gromacki 608-267-8724 ext. 307 [email protected] 28

Commercial Property Rehabilitation Tax Abatement Program

Falls Church, VA

Type: Financial Overview: When a property applies for this program to add an improvement or refurbish a commercial property, a tax assessor visits the property and assesses its tax value. At the end of the construction period, the tax assessor again assesses the property, and applies a tax abatement to the property for the next five years equal to the difference in the assessed value of the property before and after the improvement. The property receives the abatement for five years unless the value of the property declines, in which case the property is given an abatement equal to the difference between the assessed value before the improvement and the assessed value of the property at that time. Lessons learned: Under the program, improvements to the property cannot exceed 100 percent of the size of the current building size. This is one criterion that could change if the program was used in a larger city as it would provide more incentive for a property to be redeveloped. Program Success: The program resulted in an office building expansion that increased the building's size by about 20 percent. Without the program, the improvement most likely wouldn't have happened. The abatement period has ended, and now the city is receiving revenue from the property. Another example of the program’s success is the refurbishment of a theatre. The theatre was in poor condition and mostly served local bands. After its refurbishment, the theatre has become Refurbished theatre. Photo Courtesy of City Falls Church a regional venue, attracting well-known bands and people from around the region. This, in turn, increased revenue for the businesses nearby. Resources: • Appendix E: Program description and application • Program Description and application: http://www.fallschurchva.gov/Content/Government/Departments/EconomicDevelopm ent/CommercialPropertyTaxProgram.pdf Contact:

Ryan Davis Real Estate Assessment Office City of Falls Church, VA 703-248-5224

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Business Incentive Program

Forest Grove, OR

Type: Financial Overview: For businesses occupying vacant space, the City of Forest Grove offers several waivers and reductions in fees associated with development. Those incentives include: waiver of business license fee ($250); waiver of building permit fee up to $5,000; waiver of site development fee of up to $1000; waiver of planning services fee up to $1000; Water System Development Fee can be paid over a period of up to five years and a low interest rate would be charged; and reduction of sign/permit fees of up to $1000 if the applicant meets certain design standards. The developer also has to finish their project within a designated time frame to receive the waivers. There are no limitations on building size or business size that can apply for the program. The incentives are promoted on the city’s website and at business meetings. Lessons learned: The program helps reduce costs to encourage businesses to occupy these spaces. It also sends a message that the city understands the needs of businesses and landlords and property owners in trying to create a positive business climate. Also, for some small businesses, it’s the vital difference in going forward or not with a re-use project. Program Success: The program has been in place since March 2011 and will expire in June 2012. Thus far, three buildings have taken advantage of the program. Two were small retail fronts and the third was a large industrial building of 50,000 square feet. Resources: • Appendix F: Program agreement and original report to City Council Contact:

Jeffrey King Office of Economic Development City of Forest Grove 503-992-3293 [email protected]

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Revitalization Tax Credit Program

Prince George’s County, MD

Type: Financial Overview: This program was created to encourage redevelopment in inner beltway communities (the major highway circling Washington, D.C.). The program operates under the Economic Development Corporation, a 501-3c entity that works with Prince George's County. Funding for the program comes from the state of Maryland and the federal government. The tax credit is for real property taxes and improvements to non-residential property if located in census tracts where median household income is below the County median. For the first tax year following the year in which the improvements are completed and assessed, nonresidential improvements receive a tax credit for 100% of the amount of the County property tax imposed on the increased assessment. The tax credit is reduced to 80% in the second tax year, 60% in the third year, 40% in the fourth year, and 20% in the fifth year. This incentive is part of a larger set of incentives that target general economic development. The Economic Development Corporation has four departments responsible for business retention, expansion, and creation; maintaining a database of workers; employee re-training and tax credits; and technical assistance to start-up businesses. Incentive programs help bring potential businesses in for further discussion, which is an opportunity to market why the region is a better fit for the business than competing metropolitan areas. Lessons learned: Changes that would improve the program include adding money to each incentive offered and creating opportunities for development projects to find additional capital. For example, the program should partner with investors or banks willing to underwrite projects. Program Success: Overall, the program is very efficient and produces results, but should have greater volume. The key to the program’s success is that it is one incentive out of many incentives offered. To view other well-presented development and financial incentives offered by Prince George's County, along with incentives supported by the state of Maryland and other jurisdictions, visit The New Ave website. Resources: • Prince George’s County Revitalization Tax Credit: http://www.pgcedc.com/busDevelopment/revitalizationBD.php • The New Ave website development incentives: http://www.thenewave.com/development/development-incentives • The New Ave website financial incentives: http://www.thenewave.com/business/financing-your-business Contact:

Larry Hentz, Business Development Specialist Prince George's County Economic Development Corporation Prince George's County, MD [email protected]

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Green Tape Program

Montgomery County, MD and Silver Spring, MD

Type: Administrative, technical Overview: The program was originally developed to be a competitive applicant to the state for Enterprise Zones. The County flags a project on paper and in their computer system as a priority project that goes to the head of the line for staff review. The expedited permitting applies to any development within an Enterprise Zone, which is designated by the state. For the City of Silver Spring, a Permit Technician is assigned to a development project. The technician assists an applicant with the various filing requirements, regulatory reviews, and inspections, including pre-design consultations and assessment inspections. The technician ensures a smooth permitting and inspection process by working with a team that specializes in each area of development review. Lessons learned: Program complaints come from staff during greater volume of applications when the list of non-expedited permitting projects becomes backed up and long. Additionally, there should be more coordination with other entities involved in development to have the Green Tape projects expedited through their offices as well, such as through the sanitary commission and state highway agency. Program Success: The expedited permit process has been successful because developers can rely on the plan review process to have a quick turnaround. This helps with their project schedule and budgeting. Many building renovations in Silver Spring have taken advantage of the Green Tape Program. Resources: Re-use of building for graphic design company • Silver Spring Green Tape Program: http://permittingservices.montgomerycountymd.gov/dpstmpl.asp?url=/permitting/gi/n fss.asp Contact:

Department of Permitting Services Montgomery County, MD 240-777-0311

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Beaufort Redevelopment Incentive Program

Beaufort, SC

Type: Administrative, financial Overview: The Beaufort Redevelopment Incentive Program includes reimbursements to property owners for selected city taxes associated with redevelopment when they occupy certain and previously empty/vacant buildings. The reimbursements are funded using the City's TIF fund and general fund. A major component of the program is the Office of Civic Investment that acts as the arm between the planning and development offices of city hall and the Redevelopment Commission. The Office undertakes the following: advertising the incentive online; advertising the program in presentations to city council, local development groups and stakeholders, and redevelopment commissions; promoting the vacant properties to developers that they know are coming to meet with them for new development; and demonstrating successful projects through an online newsletter with social media capabilities. Lessons learned: The incentive program was in place before the establishment of the Office of Civic Investment; however, the incentives were not widely used. Since the creation of the Office and through their marketing of the incentives, the City has recently seen greater volume of redevelopment applicants. Program Success: One project that has taken advantage of this incentive is the conversion of the old city hall to a grocery store called Lowcountry Produce. The Office of Civic Investment was a key player in finding the new tenant. Resources: • Appendix G: Ordinance implementing

• •

Former City Hall. Photo courtesy of City of Beaufort, SC Redevelopment Incentive Program Office of Civic Investment: http://www.beaufortcivicinvestment.org/?page_id=196 Program ordinance: http://www.beaufortcivicinvestment.org/wpcontent/themes/beaufortoci/images/pdfs/RedevelopmentIncentiveProgram.pdf

Contact:

Josh Martin, AICP, CNU-A Office of Civic Investment City of Beaufort, SC 843-247-2057 [email protected]

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Adaptive Reuse Program

Los Angeles, CA

Type: Administrative Overview: Los Angeles has an adaptive reuse program that focuses on re-use for apartments, condominiums, hotel rooms, and live/work spaces. The program's incentives include waiver of underlying density restrictions, exceptions for conformance by "grandfathering in" of nonconformance, allowance of mezzanines, waiver of required loading space, and waiver of additional parking spaces. Developments meeting certain qualifications are given all of the incentives by-right. Other developments go through an application process. Because the incentives are very open, such as no limit on density, there are minimum standards in place to assure basic standard of living. Lessons learned: While the interviewee would not change much about the program due to its success, there has been push back from affordable housing groups in L.A. for individuals displaced from converting the uses. Most of the conversions applied to completely vacant buildings; however, some conversions occurred with buildings that were extended-stay, single occupancy hotel rooms. Overall, the program has addressed the initial goal to occupy buildings that stood vacant for many years and increased investment in the downtown. Program Success: The program has been extremely successful in converting older hotel, office and industrial buildings into apartments, condominiums, and hotel rooms. In the downtown zone, almost all buildings that qualify by-right for the program have been converted. Resources: • Adaptive Reuse Program Handbook: http://www.scag.ca.gov/housing/pdfs/summit/housing/Adaptive-Reuse-Book-LA.pdf Contact:

Los Angeles Planning Department 213-978-1240

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Gwinnett Place Community Improvement District

Gwinnett County, GA

Type: Administrative, partnership Overview: The Gwinnett Place Community Improvement District is a two-person staff that works to carry out Partnership Gwinnett, Gwinnett County's economic development initiative. Their role is to facilitate connections between business owners, prospective businesses, and the appropriate County staff and the local Chamber of Commerce in order to make a re-use happen. The CID is currently working to change the county ordinance to incentivize adaptive reuse. The ordinance is the CID Mixed Use Redevelopment, which would include density bonuses for qualifying developments. Lessons learned: While the CID has no official authority, they can create the environment for people to communicate and for new ideas to be shared. Also, their use of ARC funds for catalyst projects will get the community excited and give momentum for more projects. They have organized a working group to work with the Chamber of Commerce to create a culture of property re-use. Regarding retail use in particular, the CID is working to change attitudes of “retail will eventually come” to attitudes of “how can this be transformed into another use?” Program Success: The CID helped facilitate the reuse of the Macy's department store in Gwinnett Place Mall into a Mega Mart, which is a large Korean retailer. The CID set up a series of meetings with the current property owners to come up with ideas, and also set up meetings between the Mega Mart owners and the Chamber of Commerce. Another example of success is the transformation of a former Wal-Mart into the Gwinnett International Farmers Market, which caters to the diverse population in the county.

Photo credit: Phil Skinner of AJC

Resources: • Appendix H: Gwinnett Place Redevelopment Goal in the Unified Development Code Strategy Statement • Gwinnett Place proposed CID Mixed Use Redevelopment Ordinance: http://www.gwinnettplacecid.com/images/pdfs/plans_and_studies/gwinnett_cid_ordin ance_final_3-24-08.pdf • Gwinnett Place CID Available Space marketing page: http://www.gwinnettplacecid.com/index.php?option=com_content&view=article&id=4 5&Itemid=44 Contact:

Joe Allen 678-924-8171

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Partnering with Georgia Department of Community Affairs for funding

Rome, GA

Type: Administrative, financial, partnership Overview: The City of Rome and Downtown Development Authority worked on three different building re-use projects together with developers and the Georgia Department of Community Affairs. The city successfully applied to the DCA on behalf of the project developers and helped finance their projects using the DCA Revolving Loan Fund, the Georgia Cities Foundation Revolving Loan Fund, and the DCA Redevelopment Fund which was a grant to the city for a lowinterest loan to the developer. Once the developer re-paid that loan, the city was able to establish its own revolving loan fund, which now has $500,000. The city and developer also took advantage of tax credits and tax freezes available for historic properties. The city’s experience working with DCA was easy. Lessons learned: One drawback to the city’s revolving loan fund is due to its establishment out of the DCA Redevelopment Fund that uses federal dollars. Any project using that loan fund must meet the same criteria as the original loan, which has been somewhat of a barrier in making the most cost-effective choices. However, the three larger projects completed in their city would not have been possible without the use of the DCA programs. Program Success: The City describes their partnership with developers and application to DCA financing as extremely successful. It resulted in changing a warehouse to a hotel, a hotel to apartments, and office space to apartments. The city has received, in total, $5 million in low-interest loans over the past 7 years, which they have leveraged into $21 million in reinvestment in their downtown along with the creation of 309 jobs. Resources: • Department of Community Affairs Revolving Loan Fund: Old office space became the West Lofts. Photo credit: LMC http://www.dca.state.ga.us/economic/fin Properties • Department of Community Affairs Redevelopment Fund: http://www.dca.state.ga.us/communities/downtowndevelopment/programs/redevfund .aspancing/programs/ddrlf.asp • Georgia Cities Foundation Revolving Loan Fund: http://www.georgiacitiesfoundation.org/LoanFund.aspx Contact:

Ann Arnold Downtown Development Authority City of Rome, GA 706-236-4520 [email protected] 37

Rezoning to mixed use

Woodstock, GA

Type: Administrative Overview: Much of Woodstock’s vacant commercial property is big box retail, which poses a difficult re-use because most retailers don’t need that amount of space. In 2005, the city decided that their zoning needed to allow more uses. The City of Woodstock changed the zoning in some areas of their city to a mixed use zone that includes residential, commercial, and office. The zoning features no density cap on residential. Limitations are on form, height, and mass of the building. Other requirements are on parking, ground-floor retail, and other commercial standards. The zoning applies only to four corners of a major intersection in the city, one of which is occupied by a vacant Wal-Mart. Program success: The change in zoning for the parcels around the intersection has not caused redevelopment of the Wal-Mart. The interviewee suggested the inactivity is due to the parcel’s awkward ownership situation. The building and parking is owned by an out-of-state REIT while the land is owned by a different entity. The owners of the building and parking were not motivated to do anything with the building when city staff met with them. Contact:

Richard McLeod Director of Community Development City of Woodstock, GA 770-592-6052 ext. 1600

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Down-Zoning

Longview, TX

Type: Administrative Overview: Longview, TX, has seen re-use of two old Wal-Marts in their city that were done privately. These re-uses, among others in the city, have taken advantage of the down-zoning that is permitted in the City's zoning ordinance. Down-zoning is allowing any property or building to be re-used, developed, or redeveloped as a use that is less intense than its current zoning district. Lessons learned: Oftentimes there is demand for a use that is less intense than the one for which the parcel is zoned. Program Success: Several zoning districts for industrial or commercial were developed into multi-family housing. Contact:

Director of Development Services Longview, TX 903-237-1060

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Re-Use Examples from across the Country Centralia Center: Wal-Mart
Senior Center in Wisconsin Rapids, WI This re-use was initiated by a group of citizens that started a group of fund-raisers that were wellorganized. The idea came about after the realization that a proposed senior center far from the city center would be too expensive. Instead, they were able to raise money to purchase a WalMart that was located near the downtown and was in a condition of blight. The fundraisers raised money from the private sector close to $1 million and received a grant of $750,000 from the state of Wisconsin through a HUD program. The City Council had two alderpersons on the Senior Committee that included members of the community. To make the project viable, the consulting group advised a 20-year lease commitment from the two other agencies that would provide senior services. The other half of Wal-Mart is leased out to small businesses and community groups. Although the property is no longer on the tax payroll, the return to the community is great. The senior center has a walking path, exercise classes, arts and crafts, a singing group, a dancing group, card-playing, and more. Downtown Dadeland: Auto dealership
Mixed Use Development in Kendall, FL This former car dealership occupying 7.5 acres is now a small town center complete with 415 apartments and 125,000 square feet of retail on seven blocks. It also has access to public transport through an elevated metro line.

Spearfish Recreation and Aquatic Center: WalMart
Recreation Center in Spearfish, SD This project transformed a 70,000 square-foot Wal-Mart into a recreation center with ball courts, exercise and community rooms, a day care center, and a water park. The project cost the city $11.5 million and was funded with sales tax and revenue bonds. Within four months of opening, the outdoor water park attracted 30,000 visitors. 40

Cook Children’s Health Center: Grocery store
Medical Clinic in Fort Worth, TX Cook Children’s Health Center redeveloped this space and changed the façade as an expansion of its main campus that is five blocks away. Changing retail uses into medical offices are often successful because retailers are located in convenient places with visibility, good signage and parking.

His Hands Church: Big K-Mart
church in Woodstock, GA This redevelopment occurred on a 13-acre site. Aside from the church, there is space for a café and community rooms accessible to the public after hours. The re-use was done privately and without incentive from the city. However, the city has since changed their zoning in some areas to encourage more adaptive re-use.

South Rossville Senior Village: elementary school
affordable senior apartments in Rossville, GA This $6.5 million renovation used Department of Community Affairs Housing Tax Credits and HOME Funds for 60 one- and two-bedroom apartments for seniors of low and moderate income. The property also includes exercise facilities, libraries, and a putting green.

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Appendix A: Excerpt from “Strategic Planning for Stagnating Strips” 3 Stakeholder input and community feedback are especially useful [in determining uses for vacant commercial structures]. Creating public consensus regarding broad project goals (i.e. should the project emphasize property value increases, local business startups, quality of life improvements, etc.) is a critical indicator of future project viability when it comes to funding and measuring success. Potential big picture strategies that the community can help craft include: •

•

•

Divide and Conquer. Most 1950s/60s strips long and monotonous. To create targeted opportunities and focus efforts, create sub-districts along the main corridor to support desired activities. Distances from one-fourth to one-third of a mile are the right size to be experienced and remembered by a visitor. Green Bay, Wisconsin, used this strategy in the economic restructuring plan for Military Avenue. The section of the corridor with the highest traffic counts and viable national retail was identified as the hub for future retail redevelopment, while adjacent quieter areas would focus on restaurant and professional services uses in pedestrian oriented redevelopments. Creating these distinct nodes and identifying specific physical and design guidelines for each provided the first step toward creating marketable entities and a public message regarding desired development. Re-allocate Space. Based on the findings from the market analysis, identify opportunities to re-allocate commercial, retail and residential ratios to meet current and projected market demand. The City of Monona, Wisconsin, when evaluating the Monona Drive Corridor, determined that minimal new retail square footage was supportable given future spending projections and surrounding retail needs, while additional of office space and multifamily residential units could be supported. Further analysis of corridor property values, demographics and traffic patterns identified four locations where mixed-use and higher-density development would have the greatest impact. The city formed a redevelopment district and purchased a number of parcels at these locations with the intent to pursue redevelopment as the market improves. Reduce Red Tape. Identifying target locations may not be sufficient if zoning reinforces the status quo. Many districts require rezoning to accommodate a desired vision. A key part of the Bluemound Road Redevelopment Plan in the Town of Brookfield, Wisconsin was a recommendation that the Town create new corridor-specific zoning ordinances with associated design guidelines to facilitate increased densities and mixed-use design that would not have been allowable under previous ordinance language. By making desired development the standard rather than the exception, developers face one less hurdle in undertaking a redevelopment project, which are typically more complex to begin with.

3

Welty, Errin. (2011). Strategic Planning for Stagnating Strips. Planetizen. Retrieved 7/6/2011 from http://www.planetizen.com/node/49502

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Appendix B: Snapshot of CityPlace project in West Palm Beach, FL The $600 million CityPlace project in Downtown West Palm Beach opened in 2000 as a new benchmark of the innovative open-air entertainment-retail center concept in the United States and has since welcomed more than 750 million visitors. Its engaging architecture, mix of national stores; local and regional specialty shops; destination restaurants; private town homes and condominiums; commercial office space; a restored 1920s church adapted to serve as a multi-purpose cultural center; a 20-screen Muvico IMAX cinema complex and a $3.5 million show fountain in the center of the main plaza instantly propelled it into the County’s leading tourism attraction. Over the next few years it served as a powerful catalyst for investment in the city and county, plus shifted the brand and public perceptions of West Palm Beach. Employment When CityPlace opened it added 1,500 new retail and restaurant jobs to Downtown West Palm Beach. CityPlace Office Tower, the 18-story, 300,000-square-foot Class-A office building on Okeechobee Blvd. that opened in the spring of 2008, is now 90 percent leased and home to 1,000 workers. More than 200 people work in the Offices at CityPlace North on Rosemary Ave. The city’s business hub shifted west, as companies responded to the idea of walking to an attractive selection of shops and restaurants, instead of getting into a car at lunchtime. Property values The City of West Palm Beach recorded $4.1 billion in taxable property value in 2000. In 2009, it was $9.1 billion. (Note: The property value was $3.5 billion in 1995) New business The City of West Palm Beach reports that there was a 20 percent growth in the number of businesses from 2000-2010, exceeding the national average for comparable cities. Crime The Florida Department of Law Enforcement reported that in 2000, the City’s crime rate per 100,000 residents was 13,880. By 2009, the crime rate had dropped to 6,078 – a decrease of more than 56 percent. Investment CityPlace is the major catalyst for the City of West Palm Beach’s remarkable growth over the past decade, paving the way for the $84 million Palm Beach County Convention Center located across the street from the property, $31 million revitalization of the Flagler Drive area, approximately $1.2 billion in private investment and more than 5,000 residential units that have come online following its grand opening. Digital Domain recently announced plans to build a digital animation college, in conjunction with the Florida State Film School, across from CityPlace.

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Residential development When the complex opened, it introduced 51 private town homes; 33 garden condominiums; 128 luxury apartments in a high-rise building on the southwest corner of the property; 264 midrise apartments in three buildings along the west perimeter; 54 rental flats; and 56 live/work lofts above the ground-level stores along Rosemary Avenue. In September 2008, The Related Group opened CityPlace South Tower, a 20-story luxury residential tower on Okeechobee Boulevard, located directly across the street from CityPlace. Awards CityPlace receive the International Council of Shopping Centers’ (ICSC) MAXI Award in 2001 for outstanding efforts in shopping center marketing and the 2002 Urban Land Institute’s (ULI) Award of Excellence, the industry’s most prestigious award, in the category of large-scale, mixed-use projects. More information including business listing, features of development, and contact information for management available here: http://www.cityplace.com/mimages/factsheet.pdf

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Appendix C: Fulton County Vacant Property Registration Ordinance ARTICLE VI. - REGISTRATION OF ABANDONED OR VACANT BUILDINGS Sec. 14-281. - Definitions. Sec. 14-282. - Notification requirements. Sec. 14-283. - Signs. Sec. 14-285. - Enforcement. Sec. 14-286. - Notices. Sec. 14-281. - Definitions. The following words and phrases, when used in this article, shall have the following meanings: Abandoned or vacant building shall mean: (1) A building, the ownership responsibilities of which have been surrendered or relinquished, whether intentionally or by failure to occupy and maintain such property; (2) A building for which the owner cannot be identified or located by delivery of certified mail at the last known or registered address, which persistently or repeatedly becomes unprotected or unsecured or, which is or has been occupied by unauthorized persons; (3) A building which is empty or remains empty and is not continuously maintained, for 21 consecutive days or longer by occupants having custody or legal right of entry to the property; or (4) A building which exhibits dilapidated walls, roofs, doors or windows which will fail to prevent the entry of a trespasser. Building shall mean any structure with a roof, designed or built for the support, enclosure, shelter, or protection of persons, animals, chattels, or property of any kind. Certificate of building closure shall mean a certificate issued by the director to the owner of an abandoned or vacant building upon compliance with the provisions of section 14-282. Director shall mean the director of the department of environment and community development, or his or her designee. Owner shall mean the holder of the title to property in fee simple and every mortgagee of record. (Ord. No. 10-0498, 5-5-10) Sec. 14-282. - Notification requirements. (a) Any owner who knows or reasonably should know that a building they own is or will become an abandoned or vacant building, or any owner who intends to abandon or vacate a building they own shall: (1) File an "abandoned and vacant building certificate application" on a form prescribed by the director setting forth the following: the name, address and contact information of the building owner; the location of the building; the length of time the building has been abandoned or vacant; the estimated length of time the building will remain abandoned or vacant; and the nature of the contents, if any, of the building; (2) Remove from the building, in accordance with applicable local, state and federal laws, any hazardous materials; as such term is defined in section 26-76, located inside or on the premises; 45

(3) Secure all windows and door openings and ensure that the building is secured from all unauthorized entry continuously, or provide 24-hour onsite security; (4) Post "No Trespassing" signs on the property; (5) Provide the director with the name, local address, and telephone number of a responsible person who can be contacted in case of emergency. The owner shall cause the name and contact number of the responsible person to be marked on the front of the building; (6) As may be required by the director, maintain liability insurance on the building in a form and amount satisfactory to the director, or post a cash bond of not less than $5,000.00 to secure the continued maintenance of the building throughout its vacancy; and (7) Pay the appropriate certification fee or renewal fee as set by the board of commissioners and as hereafter amended. (b) Upon satisfactory compliance with the provisions of subsection (a) above, the director shall issue a certificate of building closure. Said certificate shall be valid for a period not to exceed 12 months from the date of issuance. Said certificate may be renewed for a period not to exceed 12 months at the discretion of the director subject to continued compliance with this article and the payment of the appropriate renewal fee. Under no circumstances shall a certificate of building closure or any extension thereof exceed 12 months in duration from the date of issuance. (Ord. No. 10-0498, 5-5-10) Sec. 14-283. - Signs. When required by the director pursuant to this article, signs shall be applied on the front of the building in a location visible from the street, and elsewhere as the director may require. Signs shall not be placed over doors, windows, or other openings. Such signs shall state the date of posting the signs, and the most recent date of inspection by the director. (Ord. No. 10-0498, 5-5-10) Sec. 14-285. - Enforcement. (a) Failure to comply with any provision in this article shall be punishable by a fine of up to $1,000.00. Each day of violation shall constitute a separate offense. (b) No owner of an abandoned or vacant building with a current certificate of building closure shall allow said building to become or remain unsecured or dangerous to the public. If it appears that any such building so certified is unsecured or presents a danger to the public, the director shall send written notification to the owner requiring the owner to promptly secure or cause the building to be secured. If, after notice, the owner fails to secure the building, the director shall immediately proceed to claim the bond held pursuant to section 14-282(a)(6), if any, and may enter the premises and cause the building to be inspected and secured using said proceeds. (c) The director, upon being informed of the existence of an abandoned or vacant building without a certificate of building closure, shall cause notice to issue to the owner of the status of the building and shall order said person to immediately obtain a certificate of building closure. (d)

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All unsecured abandoned and vacant buildings shall be immediately referred to the director for a determination as to whether said building constitutes a public nuisance that should be abated pursuant to article V of chapter 14. (Ord. No. 10-0498, 5-5-10) Sec. 14-286. - Notices. Notices required by this article shall be served service shall be perfected by certified mail or statutory overnight delivery, return receipt requested, to the most recent address of the addressee shown in the county tax records or real estate records of the clerk of the superior court. (Ord. No. 10-0498, 5-5-10)

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Appendix D: Ordinances for vacant property registration and fees, requirement to place vacant properties on the market, and requirement for plan for re-use and escrow account Vacant property registration and fees ordinance of Wilmington, Delaware 4 Concerned that property owners were neglecting their vacant properties, the city of Wilmington, Delaware enacted a Vacant Property Registration Fee ordinance, which requires owners of vacant properties to register their properties with the city, and pay a fee which begins at $500 and increases annually, reaching $5,000 per year if the property is still vacant after 10 years. Owners who do not register their properties are subject to fines. For more information see www.wilmingtonde.gov/vacantproperties. Requirement that property owners to place vacant space on the market from Peachtree City, GA, Zoning Ordinance Article 10, Section 1006 (6) Any tenant, occupant, or business that occupies more than 10,000 square feet shall provide the city attorney with a copy of the rental agreement between such tenant, owner, occupant, or business and its landlord which contains a contract provision prohibiting such person or entity from voluntarily vacating such premises or otherwise ceasing to conduct its retail business on such premises while simultaneously preventing the landlord, by continuing to pay rent or otherwise, from leasing the premises to another person or company who will operate a permitted business on the premises. If such a tenant, occupant or business voluntarily vacates such premises or otherwise ceases to conduct its retail business on the premises, the landlord shall be free to market and lease such premises to another person or company. “Big Box Ordinance” from Buckingham Township, PA, Zoning Ordinance Section E.E1.6 6. The applicant must submit as part of the preliminary land development or subdivision plan an economic impact study based upon a ten (10) year horizon and indicating the market for the proposed facility and the area from which patrons will be attracted. The economic impact study shall evaluate the projected costs and benefits to the community resulting from the project including: a. Projected costs to the Township arising from the demand for and required improvements to public services and infrastructure, including roads; b. Value of improvements to public services and infrastructure to be provided by the project; c. Projected tax revenues to be generated by the project;

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Mallach, Allen and Vey, Jennifer (2011). Recapturing Land for Economic and Fiscal Growth. Brookings-Rockefeller Project on State and Metropolitan Innovation. (p.5).

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d. Projected impact of the project on surrounding land values and the potential loss or increase in municipal tax revenues resulting from such increase or decrease. (The project shall be designed to minimize any negative impacts to adjoining property values); e. Short-term and long-term projection of increased Township revenues and costs resulting from the proposed project. f. The estimated net impacts to local employment, wages and salaries, retained profits, and the local income tax. The change in the estimated number of employees, employment types, and estimated wages generated by the project. For purposes of determining this impact, the applicant must identify the number of jobs displaced or created, the quality of the jobs, whether the jobs are temporary or permanent, and the employment sector in which the lost or gained jobs are located; g. Estimate of how much revenue generated by the project will be retained and re-directed back into the economy of Buckingham; h. The impacts (including displacement of existing retailers) on business within the Township; i. Any measures available that will mitigate any materially adverse economic impacts, if any, identified by the applicant, if necessary; j. Establishing the market and financial feasibility of the project, including any market studies prepared for the project and any plans for phased construction; k. Demonstration of the applicant's financial ability to complete the project and to achieve longterm financial stability; l. Whether prior efforts to establish a retail store larger than 20,000 square feet within the identified impact area have been unsuccessful or whether the proposed use will have an adverse impact or economic benefit on grocery or retail shopping centers in the identified impact area; m. Whether any restrictions exist on the subsequent use of the property on which the retail store is proposed to be located, including the provisions of a lease if applicable, which, in the event the owner or operator of the retail store vacates the premises, would require the premises to remain vacant for a significant amount of time; and n. A proposal addressing plans for the reuse of the site in the case that the applicant abandons the large-scale building. The plan shall include design features that demonstrate availability of flexible features such as partitions and multiple or multiple entryways to facilitate reuse by multiple tenants if the building is abandoned. The plan for reuse shall be reviewed and adopted by the Board of Supervisors. 8. As part of the land development agreement for the establishment of a retail store of 7,500 square feet or greater, in accordance with El C. 6. 1. above, provisions shall be made for the 49

removal or adaptive reuse of the structure by the applicant should the facility not be used for a period of 12 consecutive months. The Township shall require financial security to assure the plan of removal or adaptive reuse can be implemented.

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Appendix E: Program description and application City of Falls Church, VA Tax Breaks for Commercial Building Improvements Commercial Property Rehabilitation Tax Abatement Program How does the program work? If you are the owner of a commercial building that is at least 20 years old, located in the City of Falls Church, and you are planning to make improvements to the building that will increase its value by at least 50%, you may qualify for an abatement of property taxes on the value of your investment. Are there other eligibility requirements? Improvements to commercial buildings must result in commercial uses of the space. In other words, a commercial building cannot be converted to residential uses and qualify for the program. The value of a building prior to improvements (the “base” value) is established for tax assessment purposes. Then the difference between that base value and the final improvement value will determine the tax amount abated by the City for up to five years. The value of land on which a building sets is not eligible for tax abatement nor is increased value of a building due to inflationary factors – only the increased value of improvements to the building, itself. Eligible improvement projects cannot add more than 100% to the square footage of a building. For example, a 50,000 square foot building could qualify for tax abatement on the assessed value of an additional 49,999 square feet, but no more. Program eligibility is restricted to single projects. Separate applications are required for improvement projects in separate buildings or separately-timed projects in the same building. Building permits must be issued within a 60-day period from the time of acceptance into the City’s tax abatement program and must be completed within two years from the date of the initial construction permit. How do I get started? All real estate taxes on the building and property must be paid and current prior to the City’s acceptance of an application. After acceptance, taxes must remain current to continue eligibility and avoid penalties. During the construction phase of the project, the City will assess taxes at 100% of assessed value and until the final value appraisal. Appropriate building permits must be obtained before an application is filed. There is a $50 application fee (payable to the City of Falls Church) for the commercial rehabilitation tax abatement program. The city assessor must inspect the building three different times: 1. Upon receipt of the application; 2. Immediately prior to the commencement of the proposed improvements; and 51

3. Upon completion of the project. A written request must be submitted to the city assessor for final inspection (Step 3). The building owner must submit a detailed list of their actual improvement costs to the city assessor for review. How long may I get tax relief and will the abatement change during that time? Tax abatement will be for a period of five years and will start on January 1 of the year following the completion of the project. For example, if an application is received January 15, then the applicant would wait until the following calendar year to receive tax abatement. The amount of the tax abatement will be fixed and will not increase over time. However, the tax abatement amount may be reduced if the property improvement value declines during the tax abatement period. If a qualified property transfers ownership during the eligibility period for a project, the tax abatement will transfer with the property. Would a new building qualify under the program? The program does not apply to properties built on vacant land. Can you provide an example of exactly how the tax abatement is calculated for an eligible property? If a property has an overall assessed value of $1 million, comprised of a land value of $600,000 and a building value of $400,000, the building value is the pertinent number. The building value must increase at least 50%, or $200,000 in this example, for improvements completed with a two-year period following application to the program. Taxes abated on $200,000 in assessed building improvement value are calculated as follows using the 2010 City real estate tax rate: $200,000 x 0.0124 = $2,480. The tax abatement would extend for five years. The abatement amount would be a maximum value of $2,480 per year in this example, using $200,000 in increased value times the City’s current real property tax rate, which can change from year to year. How do I get additional information? The City’s Real Estate Assessment Office administers the Commercial Property Rehabilitation Tax Program. Contact the assessor’s staff at 703-248-5022 or [email protected]. The office is located at 300 Park Avenue, Suite 104 West, Falls Church, VA, 22046. Application for Commercial Property Rehabilitation Tax Abatement Program Please Note: This application must be completed and submitted to the City Assessor with a fee of $50.00 payable to the City of Falls Church. No property shall be eligible for program benefits until building permits have been obtained and verified by the city’s Building Official. In addition,

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the City Assessor shall conduct an inspection and valuation of the structure to establish a base value upon receipt of the application and before rehabilitation work is started. ______________________________________________________________________ Property Owner(s) – PLEASE PRINT ALL INFORMATION ______________________________________________________________________ Property Address ______________________________________________________________________ Date Structure was Built (Must Be at Least 20 Years Old) ______________________________________________________________________ Current Use(s) of the Structure ______________________________________________________________________ Description of Property Improvements Proposed (ATTACH ADDITIONAL SHEET IF NEEDED) ______________________________________________________________________ Contact Name of Applicant (IF OTHER THAN OWNER) ______________________________________________________________________ Applicant’s Mailing Address ______________________________________________________________________ Applicant’s Phone Applicant’s Email Address I certify that the information contained in this application is, to the best of my knowledge, both correct and true. ______________________________________________________________________ Applicant’s Signature Date ***************DO NOT WRITE BELOW THIS LINE (OFFICE USE ONLY)*************** Application #______ RPC #__________________ Building Permit #____________________ Building Permit Date __________________ Base Value $__________________ Completed Value $_________________ Approved Amount of Tax Exemption $_________________ $50.00 Application Fee Paid _____ Date Received ____________

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Appendix F: Program agreement and original report to City Council from City of Forest Grove, OR City of Forest Grove Business Incentive Program Application & Agreement Applicant Name:__________________________________________________________ Business Name and Address_______________________________________________ _______________________________________________________________________ Permit #_____________________ 1. By completing this application, applicant represents and warrants that Applicant meets all of the qualifications of the Business Incentive Program as set forth in this Program Application and Agreement. 2. Applicant agrees to apply for a commercial or industrial tenant improvement building permit on or before 30 days from the date of this Agreement. Applicant anticipates receiving a permanent Certificate of Occupancy prior to June 30, 2012. 3. Applicant agrees to: a. Commence construction within 30 days of issuance of commercial tenant improvement building permit. b. Vigorously and continuously perform the construction work, and c. Seek a permanent Certificate of Occupancy within 180 days of issuance of the commercial tenant improvement building permit or before June 30, 2012, whichever comes first. 4. Authority and Eligibility. Resolution 2011-23 adopted the Business Incentive Program for occupying vacant space by waiving certain fees and charges and allowing for an installment payment plan option for water system development charges for a business that meets the following criteria: • The business will legally occupy an existing commercial or industrial building space that is commercially or industrially zoned within the City and was previously constructed and had received a final inspection and Certificate of Occupancy on or before March 1, 2011, and • EITHER, the business currently exists within the City and is: a. Expanding into adjacent commercial or industrial space; or b. Opening a new and/or additional satellite location; or c. Relocating from a former location and will occupy additional square footage in the new location; AND d. Expanding, opening or relocating to a vacant commercial or industrial space that will add a minimum of 10% additional square footage to their existing size, AND e. The business receives a permanent Certificate of Occupancy for a commercial tenant improvement between April 1, 2011 and June 30, 2012. • OR, the business is new to the City and will: a. Legally occupy a formerly vacant commercial or industrial space; and b. The business receives a permanent Certificate of Occupancy for commercial or industrial improvements between April 1, 2011 and June 30, 2012.

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EXCEPTIONS: Notwithstanding the foregoing, a business does not qualify for fee or charge waiver or reduction if the business: • Relocates or expands from elsewhere in the City of Forest Grove but occupies less than 10% additional square footage at the new or expanded location. • Expands existing commercial or industrial space by constructing either a new building or an addition to a building that adds additional floor area; • Does not commence tenant improvements work within 30 days of issuance of commercial or industrial tenant improvement building permit or fails to obtain a permanent Certificate of Occupancy within 180 days of issuance of said tenant improvement building permit; • Is a government office or agency; • Applies for permits limited to repair and/or maintenance of structures at the businesses’ existing location; • Is located in a residential zone. • Applies for permits that do not expand the occupiable square footage (i.e. individual plumbing, mechanical permits not associated with a commercial tenant improvement building permit); • Is operating in violation of any local, state, or federal law. 5. Fee Waivers and Incentives Defined Businesses that meet program agreement requirements can receive the following fee waivers and incentives: • Waiver of business license fee. Fee savings of up to $275 • Fee waiver of Building Permit, including 12% state surcharge, Fire and Life Safety and Structural fees up to $5,000 • Fee waiver of Site Plan Review fees up to $2,000 • Waiver of Sign Permit fees up to $1,000 if the applicant meets certain design standards. • Water System Development Fee can be paid in installments over a period up to 5 years as defined in Attachment A. • Electrical, Plumbing and Mechanical permits, if needed, are separate permits from the Building Permit and are not waived or reduced. 6. In consideration for the payment and waiver of Applicant’s fees and charges by the City pursuant to section five of this Agreement, Applicant agrees to: a. Pay the City of Forest Grove the full, unreduced amount of such fees and charges as would otherwise be due if Applicant is in default of section three of this Agreement; and b. Pay Forest Grove the full amount of such fees and charges if permanent Certificate of Occupancy is not issued on or before June 30, 2012. 7. Applicant by its signature, acknowledges that if payment is due but not yet paid as per Section 6a or 6b of this Agreement, the City may withhold the issuance of a temporary of permanent Certificate of Occupancy for the commercial tenant improvement until payment is received, and Applicant agrees not to occupy or use the premises until payment is made and a permanent Certificate of Occupancy is received.

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CITY OF FOREST GROVE ________________________

APPLICANT (Business Owner or Authorized Agent) __________________________________

Signature -City Manager or designee Signature

Date:_____________________

Name:_____________________________ Title:______________________________ Date:______________________________

Water System Development Charges Installment Financing Program Requirements • The Water System Development Charges Installment Payment Plan Financing Option Program is for non-residential projects only. Applicant projects must be on sites that must be Industrial or commercially zoned and occupy previously vacant building space • The financing term will be set with payments made each year or quarter year of the term. • A maximum of five years will be allowed for repayment. • An interest rate will be charged using the current prime interest rate, plus two percent (2%). • The obligation to pay the SDC pursuant to a financing installment payment agreement shall be secured by a lien against the property upon which the improvement will be located. The lien shall be entered into the City’s lien docket as provided in Forest Grove Code Section 2.300, and may be collected in the same manner as allowed by law for collection of assessment liens. • If applicant does not own the building and is a tenant, then the applicant shall provide a written agreement between the applicant as tenant and the property owner that the property owner agrees to accept a lien against their property and execute an agreement with the City, OR the applicant shall present sufficient real property that the City may affix a lien to. • All applicable requirements in the City of Forest Grove Business Incentive Program Application and Agreement that this attachment is affixed to, shall apply. • The City Manager has final approval over projects to be financed under this program

REPORT ON PROVIDING INCENTIVES TO BUSINESSES OCCUPYING VACANT SPACE BY REDUCING CERTAIN FEES February 28, 2011 PROJECT TEAM:

Jeffrey King, Economic Development Coordinator Michael Sykes, City Manager

ISSUE STATEMENT: The current deep recession has resulted in significant job loss and failed businesses. In Forest Grove, as in other communities, there is an increase in vacant industrial, commercial and storefront space. In some cases this can also lead to a reduction in assessed property taxes. In this changed economic environment, businesses are scrutinizing all costs closely. Furthermore, some of our competitor cities in the Portland metro area are offering incentives for occupying vacant buildings. To help support business attraction and local expansion and retention, staff is proposing temporary financial incentives to reduce financial barriers for businesses occupying vacant space.

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DISCUSSION: The effects of the recession will continue to have an impact on Forest Grove and Oregon’s economy over the near term of several years. In Forest Grove, 16 industrial buildings account for 631,530 square feet (sf) of vacant space (3 buildings account for over half of that number) and another 16 commercial/retail spaces totaling 53,640 sf are also vacant. States and communities are as competitive as ever to create more business activity that will add jobs and fill vacant space. Recently both Beaverton and Gresham have enacted incentives to fill available space. In response to both the impacts of the recession and the actions of competitor communities, staff has proposed a modest program of incentives to encourage businesses to occupy vacant buildings/space. The incentives would be temporary until the area’s economy more fully recovers. The incentives are designed to last until June 30, 2013, and then will automatically sunset unless council chooses to continue the programs. The incentive elements and program eligibility are: Incentives: • • • • • •

Waiver of business license fee (maximum $250) Fee waiver of building permit fee up to $5,000 Fee waiver of site development fee up to $1,000 Fee waiver of planning services fees up to $1,000 Water System Development Fee can be paid over a period up to 5 years; a low interest rate would be charged Reduction of sign/permit fees up to $1,000 if the applicant meets certain design standards.

Eligibility: • • •

•

Receive a permanent Certificate of Occupancy for a commercial/industrial tenant between April 1, 2011 and June 30, 2013. Occupy a vacant building or space. Be new to the City OR the business currently exists within the City and is: o expanding into adjacent commercial/industrial space; or o opening a new additional satellite location; or o relocating from a former location and will increase square footage by at least 10% Sign an agreement with the City covering terms, obligations and timelines.

Not Eligible: The following do not qualify for incentives: • • • • •

Expands by new construction either as a new building or new addition. Government office or agency; Relocates or expands but occupies less than 10 percent additional square footage at the new or expanded location. Applies for permits limited to the repair and/or maintenance of structures at the business’s existing location without expanding. Fails to begin construction within 30 days of issuance of a commercial/industrial tenant improvement building permit or fails to obtain a permanent Certificate of Occupancy within 180 days of issuance of permit and before June 30, 2013.

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While businesses occupying a vacant space of any size are eligible, it is expected that the program incentives will appeal mostly to smaller businesses occupying 7,500 sf or less. However this proposal is of value to the entire business community including large and medium sized businesses. It could be packaged with other incentives such as enterprise zones, energy conservation funding and state programs. It would also provide an opportunity to provide good press with the message that Forest Grove continues to provide a supportive environment for business and values new jobs. This proposal has been reviewed and approved unanimously by the Forest Grove Economic Development Commission. FISCAL IMPACT: The maximum incentive a business can receive under this program is $3,775. Research on occupancy of 7,500 sf or less showed that if this program had been in place over the last three years an average of 4 small businesses a year would qualify. The loss in building permit fees was an average of $278. Total loss to the City would be $1,112 a year; however, costs most likely would be higher as businesses are persuaded to expand or locate in Forest Grove. STAFF RECOMMENDATION: Staff is recommending that the City Council direct staff to proceed with preparing the resolution authorizing the business incentive program and to present it to the City Council for approval.

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Appendix G: Beaufort Redevelopment Incentive Program Ordinance from Beaufort, SC Article C: Beaufort Redevelopment Incentive Program Sec. 5-2021. Definitions (a) Appraised value. For the purposes of this article, the appraised value of any property will be the value attributed to that property by the Beaufort County Tax Assessor’s Office. (b) Beaufort Redevelopment Incentive Program. A program established for the following public purposes: Increase the occupancy of empty/vacant commercial buildings, encouragement of greater development and density in Beaufort’s downtown, encouragement of student housing and affordable housing, and encouragement of annexation of property into Beaufort’s city limits. The program will reimburse property owners for city taxes that are associated with an owner’s occupancy of a certain previously empty/vacant buildings, an owner’s development of a downtown property, and owner’s development of student housing, an owner’s development of an accessory dwelling unit, and an owner’s annexation of property into the city limits. Reimbursement of these taxes will be promised and paid in order to encourage property owners to accomplish the program purposes. The realization of these goals will promote the public health, safety, morals, general welfare and security, prosperity, and contentment of the citizens of Beaufort. Hereinafter, the Beaufort Redevelopment Incentive Program will be referred to as “the program.” (c) Building. Any structure located within Beaufort city limits built for the support, shelter, or enclosure of persons, animals, chattels, or property of any kind which has enclosing walls for at least fifty (50) percent of its perimeter. For the purposes of this article, each portion of a building separated from other portions by a fire wall shall be considered a separate building. (d) Commercial building. Any building located within Beaufort city limits that is adapted to occupancy for the transaction of business; for the rendering of professional services; for the display, sale or storage of goods, wares or merchandise; or for the performance of work or labor and was utilized for commercial activity during its most recent occupancy. (e) Development of student housing. Development of housing, whether construction of new buildings on vacant sites or renovation of existing structures that have remained vacant continuously for at least one (1) full calendar year, for occupancy by students enrolled on a full or part-time basis at the Technical College of the Lowcountry or the University of South Carolina Beaufort. (f) Empty/vacant commercial building. Any existing commercial building that has not housed any commercial activity for at least one (1) year prior to any occupancy asserted by a property owner(s) as qualifying under the program. (g) Empty/vacant commercial building qualifications. Any commercial building which is conveyed to a new property owner after that building has remained empty and/or vacant continuously for at least twelve (12) months during which time it has been continuously and actively offered for sale or lease. Any substantial use of an otherwise 59

(h)

(i)

(j) (k)

qualified commercial building within (12) months prior to a new owner’s attempt to qualify under the program, including any commercial, charitable, or residential use, will compromise the previous period that the building was empty/vacant and disqualify that building from the program. New occupancy of previously empty/vacant qualified commercial building. Any new owner(s) attempting to benefit from section 5-2023 of this article must actively use the qualified commercial building for its generally recognized or obvious purpose, including, but not limited to: operation of a retail business, operation of a restaurant, storing of wares/chattels, or any other business activity allowed in the City of Beaufort. Any owner who maintains the property in the same fashion as during the minimum one (1) year that the building was empty/vacant will not qualify for the program, as one of the public purposes of this article is to increase occupancy of previously empty/vacant commercial buildings. To maintain its qualification under section 5-2123 of this article, a previously empty/vacant commercial building that has been acquired by a new owner(s) must be continuously utilized in a viable, bona fide commercial capacity. A mere change in ownership of the property without accompanying viable commercial activity will not quality a property hereunder. New construction. For the purposes of section 5-2024 of this article, new construction will mean: a. Construction of new buildings on previously vacant sites; b. City-approved legal demolitions of blighted and/or dilapidated buildings and construction of new buildings on those sites; c. Renovations, improvements and/or additions to second and higher stories in existing commercial buildings for the purpose of creating new housing; and d. Any renovations, improvements and/or additions or existing buildings where the renovations, improvements, and/or additions increased the appraised value of the building by at least fifty (50) percent. Property owner. For the purposes of this article, any person, persons, or entity with legal title to the property in question will be deemed property owner. Rehabilitation of vacant or abandoned structures. For purposes of section 5-2027, rehabilitation means renovations that bring the structure into a habitable condition. A rehabilitated structure shall have sound structural framing for roof, walls, floor, and foundation systems; completely weather-proofed wall, roof, and window systems; correctly sized heating systems; safe egress; and clean water supply with sanitary bathroom connected to sewer per code. A rehabilitated structure shall have passed a final inspection. (Ord. No. O-28-02, 7-9-02; Ord. No. O-13-03, §§ 1, 2, 4-22-03)

Sec. 5-2022. General provisions. (a) Prospective application. This article is prospective only and is not retroactive. Therefore, any action taken in regards to a property that would have qualified that property hereunder but which predates this article shall fail to qualify that property for the program.

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(b) Qualifications for the program. Qualification for the program is contingent upon ca change in the use, condition, and/or status of an owner’s property and, to qualify under section 5-2023 of this article, a bona fide change in ownership of the commercial property in question. Furthermore, to qualify hereunder the property in question must be fully in compliance with all federal, state and local codes, statutes, regulations and ordinances. The property in question must qualify for the program before any development incentives may be earned. No person or entity other than the qualifying property’s bona fide owner may receive any reimbursement for taxes paid. No property may qualify for the program more than one (1) time or under more than one (1) section. (c) City of Beaufort’s approval. Any property owner seeking to participate in the program must receive the city’s approval that the owner’s property qualifies for the program before any reimbursements will be paid by the city to the owner. The determination as to property’s qualification hereunder will be made by the city manager or his/her designee upon the application of the owner of the property in question. (d) Appeals. Any property owner aggrieved by the city manager’s determination of whether that property owner’s property qualifies hereunder may appeal to the city council by filing a letter with the city clerk setting forth the ground(s) for the appeal within ten (10) days of the city manager’s determination. Council shall thereafter consider that appeal at its next regularly scheduled meeting. Council may consider any information presented by the aggrieved property owner and the city manager in making its determination as to whether the property in question qualifies for the program. (e) Sources of reimbursements paid by city. For qualifying properties within the existing TIF District (pursuant to Ordinance No. O-34-96), any reimbursements hereunder which qualify as redevelopment project costs shall be paid from the TIF Fund. All other development incentives reimbursements paid by the city to any owners pursuant hereto shall be paid from the city general fund. (f) Reimbursements by city. The city will only reimburse a property owner for projected taxes or taxes actually paid to the city for the property qualified under the program. In no event will the city’s development incentives to any property owner exceed the city’s projections or actual payments made to the city by that property owner. (g) Schedules of reimbursements. Each time a property owner pays a city property tax, the city will reimburse that property owner the appropriate amount paid to the city provided that property maintains its qualification hereunder for at least ninety (90) days after the city receives the tax. Therefore, it is possible that a property could be approved for the program but subsequently disqualified for no longer maintaining that qualification pursuant hereto. (h) Disqualification. Any property that is approved hereunder may be disqualified from the program and any reimbursements to that property’s owner may be suspended should that property fail to maintain its qualification hereunder. Such disqualification could be cause by any of the following or any other legitimate contravention of the program: ceasing commercial activities in a previously qualified commercial building; discovery that alleged commercial activity qualifying the property hereunder was merely a façade as no bona fide commercial activity takes place at or on the property in question; discovery that a structure intended for occupancy by students as defined in this article, 61

is no longer occupied by students; violation of any federal, state, or local code, statute, regulation, or ordinance at, on, or by the property in question; no development or renovation is actually accomplished; and the taxes asserted by an owner do not actually related to a qualifying property. (Ord. No. O-28-02, 7-9-02) Sec. 5-2023 Occupancy of empty/vacant commercial buildings. Any property owner who acquires ownership of any qualified empty/vacant commercial building and pays city real property taxes in regards to a qualifying property will receive credits for all such taxes paid. The amount of these credits will be calculated as follows: the new property owner will receive cash reimbursements for all city real property taxes paid over the same number of years the qualified property had been continuously empty and/or vacant and which was continuously available for sale and/or lease during that time, up to a maximum period of five (5) years. (Ord. No. O-28-02, 7-9-02) Sec. 5-2024. New construction in downtown and redevelopment corridors. The property owner responsible for qualifying new construction (as defined in section 5-2021(i) of this article) will be reimbursed for all city real property taxes paid by the owner on the relevant property attributable to the new development on that property for a maximum period of three (3) years. For the purposes of section 5-2021(i)(3) of this article, a property owner who creates new rental housing in an upper story (or in upper stories) of an existing commercial building in the tax increment financing district will receive double the reimbursement authorized hereunder. To qualify under this section 5-2024, the new construction must either be in the city downtown tax increment financing district or in a redevelopment corridor defined in section 11.2 of the Unified Development Ordinance of the City of Beaufort, South Carolina. Should a property owner elect to receive a lump sum payment for all such taxes which will be credited, the city will pay the property owner for all such real property taxes which the property owner will pay which are attributable to the qualifying new construction for a maximum period of three (3) years, upon that owner’s receipt of a certificate of occupancy for that newly constructed building or that area of the previously existing commercial building which was renovated, improved, and/or added. (Ord. No. O-28-02, 7-9-02; Ord. No. O-13-03, § 3, 4-22-03) Sec. 5-2025. Development of student housing. A property owner responsible for development of student housing (as defined in section 52021(e) of this article) will be reimbursed for all city real property taxes paid by the owner on the relevant property for a maximum period of three (3) years. Reimbursements shall be made on an annual basis after the city property taxes are paid and the owner has provided an affidavit that the units are being utilized for student housing. (Ord. No. O-28-02, 7-9-02) Sec. 5-2026. Development of accessory dwelling units. A property owner responsible for development of an accessory dwelling unit as defined in section 11.2 of the Unified Development Ordinance of the City of Beaufort, South Carolina will 62

be reimbursed for all city real property taxes attributable to the accessory dwelling unit for a maximum period of three (3) years. Reimbursements will be made on an annual basis after the city property taxes are paid and the owner has provided an affidavit that the accessory unit is occupied. (Ord. No. O-28-02, 7-9-02; Ord. No. O-13-03, § 4, 4-22-03) Sec. 5-2027. Rehabilitation of vacant or abandoned structures. A property owner responsible for rehabilitating a structure located in the Beaufort Historic District as defined in section 4.9.C of the Unified Development Ordinance of the City of Beaufort, South Carolina, and listed on the vacant and abandoned structures list maintained by the department of planning and development services, will be reimbursed for all city real property taxes attributable to the building rehabilitation for a maximum period of three (3) years. Reimbursements will be made on an annual basis after the city property taxes are paid on the rehabilitated structure. (Ord. No. O-13-03, § 5, 4-22-03) Sec. 5-2028. Annexation incentives. (a) Annexation agreements. Any property owner who owns real property located in Beaufort County that is not within the corporate limits of the City of Beaufort who, upon the request of the city, executes an annexation agreement with the city will receive from the city a payment equal to one and one-half (1 ½) times that property’s projected city real property taxes based upon the real property’s then current appraised value, use, and annexation agreement. Once such a property actually annexes into Beaufort’s city limits pursuant to this subsection, that property’s owner will receive another payment equal to one and one-half (1 ½) times that property’s projected city real property taxes based upon that real property’s appraised value, use, and city millage rate as of the time the property owner executed the annexation agreement. (b) Annexation of properties. Any real property owner who owns real property located in Beaufort County that is not within the corporate limits of the City of Beaufort who, upon request of the city, annexes that real property into Beaufort’s city limits, will receive credits and reimbursements for all city real property taxes paid by the property owner on that property and all city personal property taxes paid by the property owner for all personal property owned by the property owner and located at the annexed real property from the date of annexation for a maximum period of three (3) years. Should the property owner elect to receive a lump sum payment for all such taxes which will be credited, the city will pay the property owner for all such projected city taxes based upon that real property’s then current appraised value, use, and city millage rate and the relevant personal property then located at the property from the date of annexation for a maximum period of three (3) years. (Ord. No. O-28-02, 7-9-02; Ord. No. O-13-03, § 5, 4-22-03)

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Appendix H: Gwinnett Place Strategy Statement Excerpted from the Gwinnett County Unified Development Ordinance Strategy Statement retrieved from: http://www.gwinnettcounty.com/static/departments/planning/unified_development_ordinance/pdf/ud o_strategy_statement.pdf

Goal 2: Foster Redevelopment. This goal is consistent with Theme 2 of the 2030 Unified Plan and is developed with a selection of related policies from the 2030 Unified Plan. The issue associated with this goal is that current Gwinnett County regulations are oriented to greenfield development causing additional review time and the need for variances to permit redevelopment and infill projects. Policy A.2.1: Institute a variety of redevelopment incentives and bonuses. Strategy a: Prepare one or more zoning districts that encourage redevelopment of existing commercial and multi-family residential areas and provide incentives for designs for urban amenities that serve a public purpose, such as: walkable mixed use development with structured parking, open space, complete streets, completion of a connected grid network of streets and pedestrian ways, regional stormwater treatment facilities and LEED construction. Strategy b: Reorient the regulations to recognize the unique needs of the redevelopment and infill process, streamline review processes, and reduce the need for variances for these projects, particularly those related to parking, buffers, and tree protection standards. Strategy c: Create an Administrative Review Permit process to ensure that mixed use developments that are permitted as of right meet performance standards for adequate public facilities, environmental protection, and design compatibility. Strategy d: Establish infill development standards that base infill lot sizes, setbacks, building heights and other site and building criteria on the dimensions of surrounding lots and structures and establish compatibility standards for the form and design of infill development. Strategy e: Provide an orderly and more flexible way to review the public benefits of nonconforming uses through creation of the Previously Existing Land Use Certificate (PELUC) process. Policy A.2.2: Promote densification in Specific Areas Designated for Mixed-Use Through TDRs, Rezoning, Increased Infrastructure Capacities. Strategy a: Prepare zoning districts and supplemental use standards for higher density residential and mixed use developments and link density increases to TDR, if authorized pursuant to the Rural Estate Character Area Sector Plan, and incentives. Strategy b: Develop a by-right infill/ redevelopment district or an overlay district that will offer more diverse and flexible options for infill and redevelopment of older commercial corridor areas. Strategy c: Provide incentives for infill redevelopment of shopping centers, such as reduced parking requirements, increased allowable densities (if housing is incorporated into the site), expedited development review and permitting. 64

Strategy d: Allow greater use of Low Impact Development (LID) standards that provide increased flexibility in achieving stormwater management results in redevelopment projects. Strategy e: Revise buffer, landscape and tree ordinance requirements to allow more flexible options for accomplishing goals of providing attractive and functional landscaping in redevelopment projects. Strategy f: Adjust the “trigger points” for grandfathering redevelopment projects under the tree protection ordinance to provide a sliding scale of re-landscaping that is proportionate to the amount of redevelopment activity that is permitted. Policy A.2.4: Promote shared infrastructure facilities. Strategy a: Prepare development standards and incentives for private-private partnerships that allow multiple property owners to share the cost and benefits of constructing joint parking facilities, public parks, joint public spaces, and regional storm water treatment facilities. Policy A.2.5: Allow “corner stores” within specified medium/higher density areas as “floating zones”. Strategy a: Prepare zoning district and supplemental use standards that allow ‘corner stores’ to be approved by a Special Use Permit in specified medium/higher density areas provided that they meet a set of performance standards.

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Appendix I: Photo Inventory of Seven Sites (electronic copies available upon request) 1. Former Lincoln Mercury Dealership

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2. Alpha Park Property

3. Alpharetta Crossing

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4. Henderson Commons

5. Sydney Place

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6. Stonewalk

7. Former Home Depot Expo

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