Gwinnett Place Mall Pilot Study
Transcription
Gwinnett Place Mall Pilot Study
Gwinnett Place Mall Pilot Study prepared for: Gwinnett Revitalization Task Force prepared by: the HOK Planning Group, Robert Charles Lesser & Co., URS Inc., USInfrastructure October 21, 2004 Gwinnett Place Place Mall Pilot Study Revitalization Plan TABLE OF CONTENTS 1. 2. 3. 4. 5. Introduction 1 Vision 7 Preamble 7 Vision Plan 10 Objective Summary 12 Objectives 15 Improve Mobility 15 Create Policy 23 Capture Job Growth 31 Prune Under-performing Retail 39 Housing Diversity Opportunities 47 Demand Good Design 57 Greenway Integration 73 Recommendations Action Plan 77 Overview 79 79 Short Term Plan 81 Mid Term Plan 83 Long Term Plan 85 Fiscal Impact Appendix 87 LISTING OF FIGURES & TABLES Figure 1: Figure 2: Figure 3: Figure 4: Figure 5: Figure 6: Figure 7: Figure 8: Figure 9: Figure 10: Figure 11: Figure 12: Figure 13: Figure 14: Figure 15: Figure 16: Figure 17: Figure 18: Figure 19: Figure 20: Figure 21: Figure 22: Figure 23: Figure 24: Figure 25: Figure 26: Figure 27: Figure 28: Figure 29: County Context Map Study Area Cities within Gwinnett County Map of focus points within study area Existing Road Infrastructure Planned Transportation Improvements Proposed Road Infrastructure Gwinnett Place Mall Road Infrastructure Cost Study Area Map Revitalization Zone District Transect Revitalization Zone District Matrix Favored Quarter Diagram F.I.R.E. Chart GSU Employment Projections Time frame & Estimated Capture Rates for Office Average Retail per square foot Trade Map Retail Life Cycle Retail Pruning Map Retail Supply/Demand Chart Age of Homeowners in Study Area Household Income For-Sale Demand Property Demand Proposed Greenway Integration Phase Diagram Projected Development & Values Residential Values Occupied Sales per square foot 2 2 3 10 16 17 19 22 26 27 28 33 34 35 37 39 40 41 42 43 49 50 54 55 74 80 88 90 91 Project Overview The Gwinnett Place Mall Pilot Study is one of three projects identified in the 2002 Gwinnett Revitalization Task Force (RTF) report to the Board of Commissioners aimed at countering suburban blight and better management of Gwinnett County’s rapid growth. Formed by the Board of Commissioners to study the causes of commercial and residential decline, the RTF found that disinvestment and decline in older areas of the county threaten Gwinnett’s leadership in business, education, and quality of life. Current conditions in Gwinnett include neighborhoods in need of social stability, commercial corridors with large amounts of vacant businesses, and activity centers threatened by traffic-choked roads. Introduction Introduction The RTF identified the goal of economic opportunity and vitality in three typical areas: an Activity Center, a Corridor, and Neighborhood. Pilot sites within the County selected for further study were the Gwinnett Place Mall Area (Activity Center) , Stone Mountain Highway - Highway 78 (Corridor), from DeKalb County to Snellville, and the Beaver Ruin Area (Neighborhood). This document specifically addresses the “activity center” oriented project, highlighting the Gwinnett Place Mall Area. A major recommendation of the RTF was to study the Pilot Areas and develop transferable strategies for other areas of the county also experiencing economic and suburban decline. This report along with the other two Pilot Studies are in broad terms recommending that Gwinnett County must do things differently. If changes are not made, to both policy and philosophy, then conditions will only worsen and decline will increase. In specific terms, the recommendations found in this report involve changes to County policy that will support a new environment that encourages mixed use, infill development and revitalization. None of the recommendations in this study are intended for the county as a whole, and should be limited to a designated Revitalization Area. All recommendations are based on a broad planning approach and many individual policy decisions by the Board of Commissioners will be required as implementation strategies are developed. Gwinnett Place Mall Study Area The Gwinnett Place Mall Study Area consists of over two thousand acres and covers an approximate one mile radius from the intersection of I-85 and Pleasant Hill. This location, selected by the RTF, represents the quintessential Activity Center Pilot Study for a variety of reasons. As the old real estate adage purports, real estate success is based on three factors: location, location, and location. Gwinnett Place was for many years, the center of activity in the County. It was the location for commerce, shopping and entertainment in Gwinnett. However, as with many early suburban centers around the country, the factors that once made Gwinnett Place so attractive (and successful) are no longer present. Gwinnett Place Mall Revitalization Plan • October 21, 2004 1 Today, there is a significant concentration of vacant and under-performing retail surrounding the Mall. The once first tier national big box chains have moved up the road to Discover Mills or The Mall of Georgia. Continued expansion and growth has led to significant demographic shifts in the trading area. Socioeconomic factors, such as cultural diversity, language, household size and crime all present additional challenges. These shifts have resulted in changes in the goods and services offered at the mall and in the surrounding centers. The target buyer today is much different than the days when Gwinnett Place was the place to shop. What is left is a “glut” of second tier retail with below average sales per square foot numbers, traffic problems and a declining aesthetic quality. Gwinnett Place is now a place to go through and actually avoided by many. There is hope however for a return to better days. A group of concerned business people, property owners and neighbors are working to form the County’s second Community Improvement District or (CID). At the time of this writing, the Gwinnett Place CID group is gaining momentum and getting closer to the membership requirements outlined by Georgia law. Once formed, this group will be able to “self tax” with the resulting funds spent on specific improvements within the CID boundary. CID’s have been (and will continue to be) a key to revitalization and development in other key centers in the Atlanta region such as the Cobb Galleria, Perimeter Center and HWY 78. It is the recommendation of this team that the County support and encourage the formation of the Gwinnett Place CID. Figure 1 County Context Map Figure 2 Map of the Study Area 2 Prepared by HOK, Robert Charles Lesser & Co., US Infrastructure, & URS Introduction The redevelopment of the under-performing retail sites into higher performing office and mixed-use centers will create an environment allowing the area to thrive once again. Gwinnett Place Mall can become a “mini-city” or “town center” for the county. To give perspective, the Gwinnett Place Mall Study Area is roughly the size of the City of Norcross and just slightly smaller than Lilburn. (See Figure 3 on the right.) Methodology The Gwinnett Place Mall Revitalization Study followed the established public participation framework used in the Hwy. 78 & Beaver Ruin Pilot studies. The Gwinnett Revitalization Task Force has overseen all three studies and, upon review and analysis of each report, will make final recommendations to the Board of Commissioners . Essential to the public process has been the involvement of the Pilot Area Focus Team. The Focus Team consists of property owners, residents, business owners, and developers (some of whom are members of the CID Formation Group) with an interest in the health and prosperity of Gwinnett Place The first step in the public process began in April 2004 with a public meeting of the Pilot Team and Stakeholders. This was the kickoff meeting for the study. The agenda for this meeting included; an introduction to the project team, a review of the issues to be addressed, a recap of how and why the area is in its current state, and an interactive vision session. The team discussed the issues to be addressed in the study. Stakeholders were asked to choose images of what they wanted Gwinnett Place to look and feel like. Gwinnett Place Mall Revitalization Plan • October 21, 2004 Figure 3 Cities within Gwinnett County 3 The second day consisted of a series of two hour interviews with different Stakeholder groups to understand in more depth the issues and opportunities facing the study area. Several issues and concerns were common among the stakeholders and evolved into a series of themes for the team to address. Following is a brief summary of these themes: • Traffic & access are a nightmare... “Can’t get anywhere at lunch” • The County must address the traffic problems for the area to stabilize Project Team. During this meeting a market assessment was presented to establish an economic baseline for the physical plan. The team also, revisited the issues currently plaguing the study area, and worked with the group to set the direction for development of the plan. After two full work days and interim discussions with the County Staff, the charrette concluded with a presentation of the key recommendations for a Vision Plan. This plan is presented in detail in the Objectives section of this report. • The current transportation system is designed to move people through the area instead of into the area • Make it easy to walk • There is no signage enforcement in the area...”The weekends feel like a bazaar” • The negative physical image of the area is a real issue • CLEAN UP the area and make it BEAUTIFUL • Create an Identity / Brand for the area • Consider benchmark communities and developments • County maintenance is an issue Project team at work during the charrette to produce the plan for Gwinnett Place • Promote an increase in home ownership in the area • Make the area family friendly • Foster more community involvement • There is a real need for public gathering spaces • There is a real need for parks and recreation areas in / near the study area. In mid June 2004 a three day charrette (interactive work session) was held to develop the Vision Plan for Gwinnett Place. The charrette included a kickoff lunch with members of the RTF, the Pilot Team, and 4 Prepared by HOK, Robert Charles Lesser & Co., US Infrastructure, & URS The project team for the Gwinnett Place Pilot study consists of four firms - The HOK Planning Group, Robert Charles Lessor & Co., LLC (RCL), URS Corporation, and US Infrastructure. The firms area of responsibility on this project and their brief background includes: • The HOK Planning Group - Project Leadership, Planning & Urban Design. The HOK Planning Group, a specialized business unit within HOK, is committed to delivering exceptional planning and design solutions through the creative blending of human need, environmental stewardship, science and art. Introduction Project Team • US Infrastructure - Infrastructure Capacity Analysis. USI is a national GIS, environmental and engineering firm with extensive experience in Gwinnett County. • URS - Traffic & Transportation Analysis. URS is a leading provider of outsourced engineering, technical and operational management. • Robert Charles Lesser & Co.- Market & Economic Analysis. RCL Co. is the leading independent knowledge and solutions firm serving the real estate industry. RCL Co. brings significant experience in regional real estate and revitalization strategies. Additional team members for the broader revitalization effort include: • Tunnel-Spangler -Walsh & Associates - Planning & Urban Design on Hwy 78 & Beaver Ruin. TSW is an Atlanta based planning and design practice focused on the principals of smart growth and new urbanism. • Glatting Jackson - Traffic & Transportation Analysis on Hwy 78. Glatting Jackson is a regional practice of planners, designers and engineers focused on community development. Gwinnett Place Mall Revitalization Plan • October 21, 2004 5 6 Prepared by HOK, Robert Charles Lesser & Co., US Infrastructure, & URS The pattern of development that has dominated suburban growth in the post-war era has created a mismatch between our physical environment and our contemporary lifestyles. Households have changed dramatically, the workplace and work force have been transformed, and a near total dependency on automobiles has risen out of rapid suburbanization. The environment produced by these patterns of development guarantees the continued separation of land use, priority of resources directed towards the automobile over pedestrians, and the disintegration of neighborhood, community, and place. 1. Vision Preamble The Gwinnett Place Mall Study Area has been defined by the fast paced wave of development that swept across metro Atlanta. As growth continues and development patterns are refined to match consumer preferences the earlier development patterns have lost their luster and are threatened to become second and third tier places. Gwinnett Place can be revitalized to reflect not only the needs and desires of today’s worker, shopper and resident, but also be flexible enough to evolve with them while creating a unique place in the market. In essence, Gwinnett Place can be a mixed-used, sustainable, regional center. This revitalization effort aims to introduce urbanity as a commodity in a typical suburban landscape. The Vision Plan draws from the once-common pattern of pedestrian oriented mixed-used neighborhoods found across the nation. A framework is envisioned that supports a mixed program of retail, restaurants, entertainment, office, and residential. Plazas, public spaces, courtyards and parks need to punctuate the plan to offer choice, to create connections and a memorable series of spaces. Gwinnett Place Mall Revitalization Plan • October 21, 2004 7 One immediate benefit for the County and the study area is the presence of such a culturally diverse population. The heritage and way of life for many of these international residents in Gwinnett is that of dense, walkable communities with a meaningful public realm and the visible presence of civic influence. These factors should be considered and leveraged in the creation of a new Gwinnett Place. The challenge is to develop an area that responds to and transforms this existing environment into a time tested development model. Successful mixed use communities (in the U.S. and abroad) have several key factors in common. These factors must be addressed for Gwinnett Place to once again thrive as the heart of Gwinnett County. They are: 1. An increase in the intensity of development that not only provides the level of activity necessary to foster real community, but that also responds to the economic factors required to make revitalization the preferred development option. 6. The inclusion of good design through buildings, streets and open spaces that “humanize” the public experience and create a dynamic community life. 7. The ability to capitalize on the unique assets of an area, including cultural diversity, environmental, retail, residential, and office resources. Gwinnett Place is at yet another crossroads in its evolution. The critical aspect is to create a flexible framework for development while fostering a clear vision that responds to and evolves with, the economic, cultural and demographic realities that make Gwinnett the success story it is today. Gwinnett Place is at yet another crossroads in its evolution. The critical aspect is to develop a flexible framework for development that fosters a clear vision for the area that is also able to evolve with the economic, consumer, and typological evolution of the American landscape. 2. A community center or civic heart that becomes the proverbial hub of activity where residents, area workers, and visitors come together. Gwinnett Place will be the place where civic, cultural, and everyday activities mingle. 3. An urban character and form that creates a vibrant pedestrian-friendly experience. 4. A hierarchy of streets and thoroughfares that creates options and allows pedestrian and vehicular activity to safely coexist. 5. The layering and mixing of uses to animate the experience, create a 24 hour community and draw people back again and again. 8 Prepared by HOK, Robert Charles Lesser & Co., US Infrastructure, & URS Gwinnett Place Mall has the opportunity to become a vibrant mixed use regional center or “mini city” and a metro core that serves as an anchor for Gwinnett County. It has the potential to evolve into a significant concentration of office space, higher density housing, a variety of retail formats, all in an aesthetically appealing environment with the support of appropriate and necessary infrastructure, pedestrian and automotive mobility. 1. Vision Vision Realizing this vision will not be easy. It will require change, commitment and partnership. • Change with regard to the current “anti-revitalization” policies in the county. A new approach will be required that fosters a pro-active, incentive based plans and ordinances. In conjunction with a new attitude, these tools will encourage private developers to take the risks necessary to create these new and dynamic places. • Commitment in terms of the County’s willingness to change and to invest in these older areas. The private sector cannot make this happen on its own. • and Partnership with the development community, area residents, property owners, stakeholders, state and federal agencies who will all be necessary to make this very difficult work of revitalization a reality. In this report we have outlined the recommendations and strategies we believe are necessary to allow and even encourage this change to happen. The recommendations and subsequent sections of this report are organized around a series of seven objectives. These key objectives for the revitalization of Gwinnett Place are: 1. Enhance Mobility 2. Change Policy 3. Capture Job Growth 4. Prune Under-performing Retail 5. Promote Housing Diversity 6. Demand Good Design 7. Integrate Parks & Greenspace Gwinnett Place Mall Revitalization Plan • October 21, 2004 9 Vision Plan Figure 4 Map of focus points within the study area 10 Prepared by HOK, Robert Charles Lesser & Co., US Infrastructure, & URS • For purposes of articulating the vision, we have illustrated how specific parcels could be redeveloped. These plans are not program specific and do not necessarily reflect the goals of the specific property owners. While they do represent valid options for future development, they are based on the broad market data identified in the study and are not intended as development proposals. • Enhanced connectivity through significant transportation improvements including additional bridges over I-85, an extended grid system near the mall and the rerouting of the mall loop and entry road. • A new integrated pedestrian oriented development model based on vertically mixed-uses and creating walkable neighborhoods and a beautiful public realm. 1. Vision The Vision Plan for Gwinnett Place offers a long range glimpse at the redevelopment opportunities that are possible in the study area. It attempts to illustrate how each of the overall Revitalization Objectives can be realized in physical form. These include: • A series of plazas, parks and open spaces that are connected and part of a broader green infrastructure system. • The implementation of these redevelopment strategies would truly transform Gwinnett Place into the mixeduse “mini-city” the County wants it to be. • A series of vertically mixed-use developments made possible through a new land use plan designation and zoning district. • Over four million square feet in new office space ranging from highly visible mid to high rise along the interstate to integrated product fronting pedestrian oriented parkways. • A series of existing under-performing retail centers repositioned as mixed-use centers with a residential or office focus. • Thousands of new housing units ranging from three and four story rental units to for sale townhomes. All are organized around a pedestrian oriented street grid and a series of usable open spaces. Gwinnett Place Mall Revitalization Plan • October 21, 2004 11 IMPACT RECOMMENDATIONS SITUATION Objective Summary Improve Mobility Change Policy Capture Job Growth Prune Under-performing Retail The current road network is extremely congested and can not adequately meet current demands. This fact impacts nearly every other aspect of the study area, creating an undesirable location for residents, visitors, shoppers, and prospective investors. Current Gwinnett County policies related to land use, zoning, and code enforcement, do not support redevelopment and are detrimental to the image of Gwinnett Place. Future projections for job growth in the region are robust. Because of congestion and an ugly physical environment, Gwinnett Place is at a disadvantage to capture its fair share of this office demand. There is too much retail space in the study area. Vacancies, poor sales per square foot performance and lower tier retailers are the result. • Create more transportation connections in the existing network • Code Enforcement- Police Department • Plan for short and long term office growth • Code EnforcementCommunity Based Initiative • Give developers needed incentives to help reposition underperforming parcels • Prune away underperforming retail for redevelopment as mixeduse • Support alternative transportation modes • Enhance pedestrian mobility • Create a new “Revitalization Area” land use classification • Support creation of the Gwinnett Place CID • Establish a strong image/ identity & branding strategy for the area The recommended “mobility enhancement” projects will be high impact and high price tag. There are ”early phase”/ low cost enhancement projects, such as signalization and streetscape improvements, that should be actively pursued. 12 Costs for policy changes will primarily be administrative in nature. However, additional study will be required to develop a detailed implementation strategy. • Work on a project to demonstrate the potential for new office in the area • Work with the chamber to aggressively pursue a major tenant. • Foster public/ private partnership or joint ventures • Allow for greater intensity • Entice Mixed-Use Development • Ensure adequate infrastructure to support office growth Additional jobs will translate into more revenue generating office space for the county. The ripple effect will be a stronger retail base and a larger daytime population. Balancing supply and demand will create a stronger retail base and ultimately a greater contribution to the county tax digest. Prepared by HOK, Robert Charles Lesser & Co., US Infrastructure, & URS Demand Good Design Integrate Parks and Greenspace Housing in the study area is limited primarily to older garden style apartments. This high concentration of renters creates transiency, crime and other issues that impact schools and the quality of adjacent development. Suburban development patterns in America have led to a lifeless public realm The large lot, single use, auto oriented development pattern has resulted in an area void of any distinguishing visual characteristics, putting it at a disadvantage to new offerings such as Norcross Forum and Mall of Georgia. The study area is void of any usable open space, community gathering areas or recreational opportunities that contribute to aesthetics and are necessary to foster a sense of place. There are stream beds and other natural features that can be utilized along with area parks to create a comprehensive open space network. • Encourage developers to build for sale and higher quality rental products • Integrate existing successful retail • Implement the proposed Greenway System • Foster mixed-use redevelopment • Allow for pocket parks/ open space to be built into redevelopment plans • Develop a proactive strategy to encourage redevelopment of older residential properties • Ensure adequate infrastructure to support residential density Additional residents in the area will carry an increased cost of services, but will help stabilize the are and generate more retail and service demand. • Streetscape Improvements • Establish consistent Urban Design Standards • Ensure redevelopment projects become a part of the regional stormwater management facilities Cost for design quality range from the fees required to retain quality consultants to administrative cost for review and enforcement. Initial costs will relate to ownership of these “public” spaces. A strategy and incentive structure will be necessary to encourage developers to contribute to the “system.” Maintenance responsibility will also need to be resolved. Gwinnett Place Mall Revitalization Plan • October 21, 2004 1. Vision Encourage Housing Diversity 13 14 Prepared by HOK, Robert Charles Lesser & Co., US Infrastructure, & URS Existing Conditions The study area is typical of suburban landscapes where buildings are large in scale and strongly segregated by land use. Local zoning codes and traditional development practices have shaped a suburbia of homogenous land use districts linked by an overly burdened (high capacity) arterial road network. This pattern of development virtually guarantees all trips must be made by car, and all of these trips must use the same roadways. Regardless of the trip’s purpose, going to the store, work or home, all cars are concentrated onto the same collector roads, arterials, and highways. Even though designed for high capacity, the multi-lane arterials quickly become overloaded, particularly at peak AM and PM hours, lunchtime and during shopping-oriented holidays as local traffic and distance travelers get in each others way. This auto driven landscape not only stretches very limited resources, but also fosters an antipedestrian environment. It is far easier to garner support for automobile improvements then it is to foster a pedestrian and bicycle friendly network of sidewalks, trails, and public spaces that support the social and cultural mixing of community. 2. Objectives: Mobility IMPROVE MOBILITY The problem of congestion creates not only a transportation problem for the study area, but a marketing problem as well. Gwinnett Place was built upon its ability to attract shoppers from the entire metro region. Today, the traffic problems have contributed to a declining market, lower retail sales, vacancies and a degraded visual quality. There are more competing opportunities for regional shopping, and issues such as traffic are challenges to drawing shoppers. As such, solving the traffic problems will determine the ability of the area to attract destination shoppers and ultimately, its ability to retain and attract tenants. Many of the roads in the study area are currently at level of service (LOS) F. As the county and region continue to grow, this trend will worsen without significant improvements. A significant number have already stopped shopping in the Gwinnett Place Mall area to avoid the congestion. Due to a lack of connectivity in the area, local traffic only adds to the problem. An interconnected street grid would alleviate this condition (or at least greatly enhance it) by creating more options. Typical congestion at the intersection of Pleasant Hill Rd. & Crestwood Pkwy. Gwinnett Place Mall Revitalization Plan • October 21, 2004 Typical congestion at the intersection of Pleasant Hill Rd. & Mall Blvd. 15 Figure 5 Existing Road Infrastructure However, what exists is a series of disconnected neighborhoods, office parks and retail centers which are respectively served by cul-de-sac, collector and arterial networks. This pattern does not allow for alternate routing and adds to the pressure placed on primary roadways. The Gwinnett County DOT has done an excellent job of building and upgrading transportation facilities to meet the tremendous growth in the county 16 over the last 30 years. However, the resources of the department have mainly been directed at keeping up with the distance mobility needs of the county rather than the internal mobility needs of local traffic. Throughput rather than circulation has been the primary focus of the infrastructure expenditures over the past three decades. Consequently the investments have been targeted at the principal arterials at the expense of other roads types in the classification hierarchy. Prepared by HOK, Robert Charles Lesser & Co., US Infrastructure, & URS 2. Objectives: Mobility The Gwinnett County DOT is also currently about to embark on a major reconfiguration of the I-85/GA-316 interchange, which is located in the Gwinnett Place area. This project will significantly improve the safety of merging traffic flows through the creation of collector-distributor slip lanes along the outer edges of both roads. However, this project will also require southbound drivers on I-85 to prepare to exit at Boggs road to get off at Pleasant Hill exit, 2 miles downstream. This new configuration will necessitate finding new ways to announce the Gwinnett Place market area to the pass-by traffic on I-85/GA-316. This can be done either through the creation of a visitor center/cultural attraction to permit a GDOT sign on the interstate. This project will also prepare Figure 6 Planned Transportation Improvements Gwinnett Place Mall Revitalization Plan • October 21, 2004 17 the way for expanded, long-distance, high-capacity transit in the study area by extending the HOV lane network beyond its current terminus. A part of this proposes a new HOV only ramp at Old Norcross Road, which would directly serve the Gwinnett Place area. In order to accomplish many of the recommendations of this study, a shift in the DOT’s focus to a more balanced, multi-modal transportation system, as well as, an accompanying shift in the transportation policy model, as revealed in the Comprehensive Transportation Plan (CTP), will be necessary. The CTP, as it now stands, is focused on continuing the development of the last remaining greenfields in eastern and northern Gwinnett. Reinvestment in older greyfield areas of the county, which are experiencing the greatest decline will require different types of transportation investments than have been previously employed. An urban transportation policy model will need to be implemented in these areas if successful revitalization is to occur. The suburban development model does not support the population densities necessary to improve commercial performance nor is it capable of supporting the kinds of changes that will be necessary in order to attract private sector investment back into the study area. All infrastructure investments should be designed with the goal of improving the attractiveness and visibility of the Gwinnett Place market. Recommendations There are several central transportation issues related to the redevelopment of the study area that need to be addressed in order to balance the transportation system so it can support the goals of the revitalization task force. These recommendations are: M1 CREATE MORE TRANSPORTATION CONNECTIONS IN THE EXISTING NETWORK • Extend the street network in and around the mall in a grid pattern. • Build new bridges across I-85 from Breckenridge to Venture Drive at the Mall, and from Club Drive to Liddell at Dave & Busters (Note: due to regional funding priorities the BreckenridgeVenture bridge may not be competitive; see next recommendation) Bridges and overpasses can be used to enhance vehicular and pedestrian mobility. 18 Prepared by HOK, Robert Charles Lesser & Co., US Infrastructure, & URS 2. Objectives: Mobility Figure 7 Proposed Road Infrastructure • Explore new mall-only access ramp under Pleasant Hill to connect to the new Breckenridge-Venture Bridge (or Old Norcross) for northbound for I-85 traffic (Due to the above funding constraints Old Norcross may be more competitive or a short-term substitute) • Connect dead-end stubs whenever possible. • Create parallel facilities to the arterials • Separate local and through traffic wherever possible • Group curb cuts together by creating slip lanes along Pleasant Hill. Gwinnett Place Mall Revitalization Plan • October 21, 2004 19 M2 SUPPORT ALTERNATIVE TRANSPORTATION MODES • Improve transit connections between the study area and the Gwinnett Arena, local attractions, and cultural facilities • Improve the transit system • Create a centralized and activated express/ local bus system transfer hub • Plan for long range, high capacity transit service in the study area • Study the locations desirable and feasible for a new multi-modal transit hub Building placement, street trees, intersection treatment and street furnishings all contribute to a beautiful public realm. 20 Prepared by HOK, Robert Charles Lesser & Co., US Infrastructure, & URS ENHANCE PEDESTRIAN MOBILITY • Improve walkability by creating adequate pedestrian infrastructure • Build sidewalks throughout the study area starting with the major arterials • Build attractive and safe crosswalks • Provide for multi-use trails and connections to local greenspaces • Construct pedestrian infrastructure at (and connecting to) bus stops. Costs Costs for the recommendations listed vary greatly in magnitude and depends on the possibility for phasing construction over time versus concentrated outlays of capital and effort. The most affordable and immediate improvements are the streetscape projects listed, including small sidewalks and buffer plantings. The next most affordable type of improvements are the multi-use trails and crosswalk improvements. Mass transit costs can be affordable if continued bus service is offered or more expensive if a rail alternative is provided. It is important to note, however, that the economic development opportunities differ greatly. Bus service will off a more limited series of opportunities, while rail can provide for much greater quantity and quality of development. Roadway construction can vary greatly but many of the improvements envisioned for this area are major facility upgrades or brand new facilities, both of which are high cost. An estimate of probable cost for transportation improvements is shown in Figure 8 on the following page. Gwinnett Place Mall Revitalization Plan • October 21, 2004 2. Objectives: Mobility M3 21 22 Prepared by HOK, Robert Charles Lesser & Co., US Infrastructure, & URS Promote Idea/Project in Transportation (CTP) Ronald Reagan/Club Drive connection Figure 8 Gwinnett Place Road Infrastructure Costs Note: Short-Term Improvements are highlighted in Gray Promote Idea/Project in Transportation (CTP) Liddell-Club Drive Connector New 4 lanes New 4 lane bridge across I-85 2020 2020 2020 2005-2010 New connection widen 2 to 4 lanes Feasibility Study Promote Idea/Project in Transportation (CTP) Liddell-Club Drive Connector 2005-2010 HOV Ramps @ Old Norcross Feasibility Study 2005-2010 Feasibility Study Intermodal Transit Center (re)location 2005-2010 2020-2030 Bridge over I-85 (both sides) 2010-2020 Mall only slip lane from I-85 NB Sidewalk Build/Fill in gaps in sidewalks along All minor streets in study area (both sides) 2010-2020 Feasibility Study Sidewalk Fill in gaps in sidewalks along Old Norcross Road (both sides) 2005-2010 2005-2010 Sidewalk Fill in gaps in sidewalks along Breckenridge Blvd (both sides) 2005-2010 2005-2030 Sidewalk Fill in gaps in sidewalks along Satellite Blvd (both sides) 2005-2010 Crosswalks Sidewalk Fill in gaps in sidewalks along Steve Reynolds Blvd (both sides) 2005-2010 Signal Timing Sidewalk Build sidewalks along Pleasant Hill Road (both sides) Improve Crosswalks throuthout study area Feasibility Study Sidewalk Build sidewalks along Pleasant Hill Road Planning Year 17,200,000 5,000,000 4,700,000 50,000 40,000 50,000 60,000 50,000 variable variable variable variable variable variable $225,000 $350,000 Est. Project Costs Gwinnett Place Mall Revitalization Study Type of Improvement Description Map Key Pleasant Hill Terminus Liddell Rd Satellite Blvd NA NA Pleasant Hill Rd NA Venture Dr NA NA Sweetwater Club Dr Steve Reynolds Club Dr I-85 I-85 From Club Rd Liddell Drive Connector Club Drive Shackleford Rd NA NA Venture Dr NA Breckenridge Dr NA NA Satellite Old Norcross east Old Norcross east Pleasant Hill Club Drive Steve Reynolds Blvd To 1.7 1.7 0.8 NA NA 0.9 0.4 NA NA NA 1.2 (gaps variable) 2.5 (gaps variable) 2 (gaps variable) 1.9 (gaps variable) 0.9 1.4 Segment Length (miles) Problem Statement Current Gwinnett County policies related to land use, zoning, and code enforcement, do not support redevelopment and are detrimental to the Gwinnett Place aesthetic, quality, and image. In order to foster revitalization, it will be necessary to strategically address existing policies and develop new ones that serve to catalyze as well as adopt pro-revitalization policies. In essence, the County can make infill and revitalization development not only a viable option, but the preferred option. Code Enforcement In listening to stakeholders in community workshops, it is clear that there are serious lapses in the enforcement of existing codes and ordinances. Some of the issues raised included: • the proliferation of temporary low quality signs across the community • excessive numbers of occupants in residential uses 2. Objectives: Policy CREATE POLICY • a variety of unlicensed and intense home business uses not allowed in residential neighborhoods Example of current retail development in the study area revitalization and infill development. Without policy change, the recommendations developed for each of the three Pilot Studies will be difficult if not impossible to implement. In particular, the regulatory changes required to accommodate the development of pedestrian friendly facilities and an overall environment are of utmost importance in creating a memorable place that is clearly differentiated from numerous surrounding areas. The real estate community is drawn to clearly defined policy and an easily understood “set of rules” for development. Having said that, however, even with the regulatory playing field leveled between greenfield and infill development/ redevelopment, the developers will still opt for a greenfield option simply because of the ease of approval and typically the lower costs of development. In order for Gwinnett County to foster quality development and reverse decline in key areas, it is essential to amend existing policies, Gwinnett Place Mall Revitalization Plan • October 21, 2004 • excessive parking on properties • non-operational and unused vehicular parking in residential neighborhoods. In the words of one resident, “ the Gwinnett Place area looks ‘like a flea market’ on the weekends”. Recognizing that County departments may be Example of potential area for redevelopment 23 understaffed and not always able to keep up with numerous violations, a revised enforcement policy needs to be adopted that would allow for quicker and better response. Land Use Policy The County’s 2020 Land Use Plan does not support mixed-use development, which is considered a fundamental component of smart growth. The Land Use Plan does not contain a Mixed-Use classification and only designates a limited degree of variation in intensity and use. This is extremely detrimental for areas struggling to revitalize because of the inability to foster economically viable higher intensity developments. This inflexibility of the current classifications restricts redevelopment opportunities by limiting new development to existing forms and requiring a costly rezoning process. A new Revitalization Area Land Use classification would allow for the introduction of new market-supportable office, retail and housing projects., and make responding to changing market demand less costly. Land Use classifications need not match or comply with current on-the-ground uses, but should reflect the desired long term vision. Under Georgia law, the future land use plan serves as the legal basis for rezoning activity on the part of the county. It is important that the plan accurately reflects the desired vision for an area. In this way, these classifications should direct public infrastructure improvements that support the desired future land use. Example of struggling retail in the study area 24 Pleasant Hill South of I-85 Zoning Resolution Current Gwinnett County zoning districts do not allow the mixed-use, pedestrian oriented districts and context sensitive road design necessary to make revitalization happen. Amendments to the Zoning Ordinance are desperately needed in order to promote true mixed-use development. These amendments will allow developers the flexibility to meet the economic realities of revitalization and infill development. Furthermore, the current ordinance requires parcel by parcel rezoning process that is an administrative burden to the county and difficult and costly for applicants. Coordinated strategies for public and private partnerships will need to be addressed in order to foster quality development. While existing zoning does provide for a Mixed-Use Redevelopment Overlay District designation, the constraints placed on development by this ordinance are unsuitable for the revitalization strategies outlined. Limitations placed on development are very restrictive and allow only a narrow range of new development. Issues include: what lands can qualify for redevelopment, lot sizes, density / open space calculations, the relationship between underlying zoning and the proposed overlay, as well as the perceived arbitrary nature of the document. It is interesting to note that no projects have yet to result in a true mixed use project as allowed under this ordinance. At the time of this writing, there was one pending project with this mixed use designation and its initial plan was rejected. Prepared by HOK, Robert Charles Lesser & Co., US Infrastructure, & URS, 2. Objectives: Policy Recommendations P1 CODE ENFORCEMENT - POLICE DEPARTMENT • The County should give jurisdiction to the Police Department to ticket for code violations in areas designated as Revitalization Districts. The intent is for code enforcement to maintain its call center and for police to ticket in the field. • This would alleviate the processing and enforcement “road-block” caused by staff shortages and allow officers already patrolling the area to take ownership of these important issues. P2 CODE ENFORCEMENT - COMMUNITY BASED INITIATIVE • The County should form a community based initiative that empowers volunteers to aid in the identification and ticketing of code violations. • Similar to a community watch program, participants would volunteer to monitor their neighborhoods and, following a training and certification program, be empowered to issue notices of violation. New zoning would allow the development of street oriented residential with ground floor retail. • The proposed Revitalization Zoning Districts (RZD) could be applied only to properties within a designated Revitalization Area. P4 CREATE A REVITALIZATION ZONING P3 CREATE A NEW “REVITALIZATION AREA” LAND USE CLASSIFICATION • Establish Revitalization Areas in the County Comprehensive Plan for the purpose of identifying specific areas that will be targeted for revitalization. • All adopted Revitalization Areas would have their boundaries depicted on the Future Land Use Map, which is included in the Comprehensive Plan. Gwinnett Place Mall Revitalization Plan • October 21, 2004 DISTRICT (RZD) • A Revitalization Zoning District (RZD) is proposed for the Gwinnett Place Study Area. • The new RZD development regulations would provide the incentives and design requirements that are needed to attract quality mixed-use development in declining commercial areas. 25 The map below shows the study area boundary as well as the CID boundary. The study area boundary is based on a 1 mile radius from the intersection of I-85 and Pleasant Hill. Any property that fell within that radius was then included in the study area. The final CID boundary will not be set until it meets its two formation goals. After meeting with several business owners, inital CID boundaries encompassed the entire “commercial Heart” of the area on both sides of the Interstate. The boundaries were reduced based on “positive or negative” feeback from the property owners. Figure 9 Study Area Map 26 Prepared by HOK, Robert Charles Lesser & Co., US Infrastructure, & URS, The categories in the RZD are based on the concept of the transect. This matrix, developed by Duany Plater-Zyberk & Company, is an ecologically based classification tool used to outline the scale, character and density of development appropriate for a range of conditions. 2. Objectives: Policy The proposed RZD regulations would provide the economic incentives and the design requirements needed to attract quality development. Regulations would be comprehensive and definitive, easy to understand and administer, and be flexible enough to address issues systemic in activity centers County wide. The County could apply the RZD as needed to prevent or reverse commercial and residential decline and create a healthy, reliable tax base. Figure 10 Revitalization Zoning District Transect Gwinnett Place Mall Revitalization Plan • October 21, 2004 27 The Revitalization Zoning District Matrix The proposed Revitalization District is needed to implement the revitalization goals specific to each study area. It would consist of a set of six (6) new zoning districts in the Gwinnett Zoning Code, analogous to transect zones T1-T6. The six districts provide a range of development options from protected parks and preserves to mixed-use town centers as follows: RD – 1 Parks and Preserves, RD – 2 Rural, RD-3 Suburban Residential, RD-4 Neighborhood Mixed-Use, RD-5 Town Center, and RD-6 Regional Center. The revitalization codes differ significantly from existing zoning, in that property owners would be given a broader range of residential/commercial mixed-use development options. New requirements would improve the visual and pedestrian quality of the street, such as adequate sidewalks and street trees, and requiring buildings to be located on the public sidewalk with parking to the side or rear on commercial sites. Such increased development options and requirements have been shown to improve property values, encourage quality development and nurture stable, quality residential neighborhoods and sustain vital retail districts. The Gwinnett Place Study area will be classified as a RD-6 Regional Center that serves as hub of activity for the county at large and surrounding neighborhoods. Figure 11 Revitalization Zoning District Matrix 28 Prepared by HOK, Robert Charles Lesser & Co., US Infrastructure, & URS, Urban Village Urban Garden 15-25 units per acre .75- .90 Floor Area Ratio 1 parking space per bedroom 20-40 units per acre 1-1.3 Floor Area Ratio 1 parking space per bedroom 3-story Podium Urban Wrap 25-40 units per acre 2-3 Floor Area Ratio 1 parking space per bedroom 40-60 units per acre 3-4.5 Floor Area Ratio 1 parking space per bedroom Gwinnett Place Mall Revitalization Plan • October 21, 2004 2. Objectives: Policy URBAN RESIDENTIAL TYPOLOGIES The examples below are intended to illustrate the physical characteristics of different residential densities. In the proposed matrix, RZD-6 calls for up to 60 units per acre, meaning that each of these building types could be present at Gwinnett Place. 29 P5 SUPPORT THE CREATING OF THE GWINNETT PLACE COMMUNITY IMPROVEMENT DISTRICT • A group of local business leaders, with the support of the Gwinnett Chamber of Commerce, are in the process of establishing the Counties second Community Improvement District (CID). It is the recommendation of this team that the County support the formation of this group. • Revitalization activities can not and will not occur without the combined effort of the public and private sector. As seen in other Metro Atlanta areas and across the nation, only through a true partnership can government and the private sector generate the political will and ultimately the funding to allow necessary enhancement projects to occur. The CID is the public sector vehicle to allow for this to happen. • The CID is critical to revitalization and the long term health of the community P6 ESTABLISH A STRONG IMAGE / IDENTITY & BRANDING STRATEGY FOR THE AREA • It will be important to establish a broad based repositioning and branding strategy for Gwinnett Place to tell a new story, build excitement and to change negative perceptions. Naming should be a key piece of the strategy. This would be supported through physical elements such as signage and banners as well as through the marketing, media and public relations campaigns organized and lead by the Gwinnett Place CID. • We recommend calling the entire Revitalization Area “Gwinnett Place.” This would reference directly to the mall and give a broad base for naming options. • A comprehensive naming strategy would also create synergy and connection between existing and new sites. Examples include: “The Prado @ Gwinnett Place”, “Mall Corners @ Gwinnett Place”, “The Village @ Gwinnett Place” etc. Example of using signage to enhance the sense of place being established through policy change. 30 • To address the issue of freeway identity, especially in light of the new GDOT I-85 / 316 interchange improvements, Venture Drive should be renamed Gwinnett Place Drive to allow for an Interstate Sign. This would also provide a direct link back to the mall and its new front door. Prepared by HOK, Robert Charles Lesser & Co., US Infrastructure, & URS, Problem Statement The Gwinnett Place Mall area is at a critical crossroads, with one direction - business as usual - most likely to result in continued decline, and the other direction offering real potential for revitalization. Despite being in the direct path of executive housing growth in a metro area that is expected to add nearly 1.5 million jobs over the next twenty-five years, Gwinnett Place is at a competitive disadvantage to capture new office demand. Choked with traffic and lacking design controls that create an aesthetically appealing environment sufficient to compete amongst new alternatives, the GPM area is handicapped in its ability to compete for new office-oriented Example of available office space in the study area growth. Given the lack of undeveloped land in the study area on which to develop new office space, and the fact that redevelopment or infill is far more difficult than greenfield development, it is clear that without a proactive strategy to bring commercial office development to this location, corporate users, and therefore the best paying jobs, will pass by the study area opting for areas that are “clean and green”. As a result, the area will continue to decline. 2.Objectives: Job Growth CAPTURE JOB GROWTH Although the area is over-supplied with commercial retail space, the potential for capturing new commercial office space demand is substantial. Creating an environment suitable for capturing new office development (and therefore jobs) is the critical piece of the redevelopment strategy. • Office is the most effective and fiscally appealing land use to replace struggling retail. • Office workers create demand to support retail space, strengthening the retail market. • They provide a captive audience to support additional housing, particularly owner-occupied housing that helps improve the ratio of renters to owners in the area. Without a commercial office and jobs-based strategy, there is a risk for the balance of the redevelopment strategy becoming a “house of cards.” For example: • Redeveloping retail in a way that is beneficial to the County tax digest is far more difficult without office. • Attracting owner households to the area is likely much harder. • Drawing upscale retail tenants becomes more challenging – in fact retail decline is more likely. Gwinnett Place Mall Revitalization Plan • October 21, 2004 31 • Without additional household expenditures and workers’ daytime expenditures, it is very difficult to positively influence demand for retail in an area that is currently oversupplied. Successfully attracting office is the key to setting the overall redevelopment of the Gwinnett Place Mall study area into motion. Therefore, Gwinnett County must aggressively pursue office development and large users to the area. From a planning and development perspective there must be a catalytic project, in the near term that can demonstrate the potential for development in this area. Context for Office Development Opportunity Employment growth in the Atlanta Metropolitan Statistical Area (MSA ) has largely occurred in the MSA’s “favored quarter.” The favored quarter is defined as that radiating quarter of an MSA where the bulk of the executive housing and white collar jobs Examples of office within the study area 32 locate, and the largest portion of new housing growth, both executive and more affordable, is developed. Atlanta’s favored quarter, shown on the map on the following page, largely equates to the locally-named Golden Triangle, the area north of Downtown between I-75 and I-85 and anchored by Georgia 400 and the Chattahoochee River. Between 1990 and 2000, nearly 80% of the region’s job growth occurred within the favored quarter. Although an increasing amount of growth has located in areas outside of the favored quarter in the last few years, the large majority of growth will continue to move up I-75, I-85 and Georgia 400, with clustering of office development in the metro cores. Metro cores are concentrations of employment and regional activity and have evolved as the metro area continues to grow. Atlanta’s largest urban cores include Downtown, Midtown, Buckhead, Central Perimeter and Cumberland-Galleria. These latter three cores are examples of 3rd generation cores, cores that were largely founded in the 1970s and evolved into major employment and activity concentrations in the 1990s. These cores, which dominated office growth in the 1980s, have since seen gradual decline in their capture of new office and retail demand, losing share to newer 4th generation cores located even further out. The strongest example of a 4th generation core in Atlanta is the Georgia 400 North corridor in North Fulton, which accounted for close to half of the region’s office growth in the late 1990’s and 2000’s. The other two major 4th generation cores are Town Center on I-75 and Gwinnett Place Mall. Mature 3rd Generation cores are losing ground to these newer cores in part due to significant traffic congestion along the major freeways feeding the cores. As the economy recovers and we begin to enjoy real job growth, it will likely be the 4th generation cores that are best positioned to capture growth. They are closest to many executives’ homes and are more affordable than the more mature, earlier generation cores. (See Figure 12 on pg. 33) Just as metro cores have continued to push outward, along with suburban housing growth, there are a number of factors that are likely to similarly influence our Prepared by HOK, Robert Charles Lesser & Co., US Infrastructure, and URS 2.Objectives: Job Growth Figure 12 Favored Quarter Diagram urban form over the next several decades, but with different results. For example, our underlying economy is changing – the shift from an industrial economy to a knowledge economy impacts the types of environments we will need to create. Our county boundaries were originally designed to serve an agricultural economy, so no farm was more than a wagon ride away from the county seat. Since then we have lived through the industrial economy where separation of land uses was the guiding planning principle. In the industrial economy we traded quality of life and environmental protection for economic benefit and to a certain degree unsustainable development practices resulted in economic growth. Now, in the early stages of the knowledge economy, knowledge workers have greater discretion about where to locate themselves and their companies, and tend to choose high quality of life environments when making those decisions. Quality of life will play a major role in determining which companies want to relocate to, or remain in the Atlanta region. These same issues will influence their decisions on where in Atlanta they want to be. Quality of the environment will play a critical role in whether or not companies decide to locate in Gwinnett Place Mall. Employment Situation New jobs are the driver for office demand and from that perspective; Gwinnett Place Mall is in a very good position. Emerging from consecutive years of job loss, the Atlanta MSA is expected to enjoy 60,000 plus net new jobs over the coming three years. Gwinnett Place Mall Revitalization Plan • October 21, 2004 33 0.5 0.45 43% 0.4 35% Percent of Households 0.35 0.3 25% 0.25 24% 22% 19% 0.2 0.15 10% 0.1 10% 9% 0.05 2% 1% 0% 0 Gwinnett Place Mall 1/ Cumberland Galleria 2/ Lenox 3/ Town Center 4/ 1990 FIRE Central Perimeter 5/ North Point 6/ 2000 FIRE Figure 13 F.I.R.E. Chart As this redevelopment plan is not likely to come into fruition during this time period, it is important to consider the long-term economic forecasts for the Atlanta region. The Atlanta Regional Commission (ARC) is anticipating 1.5 million net new jobs over the next 25 years. Only a portion of these jobs will locate in office space and there is certainly a risk of these projections being aggressive. The Atlanta region is threatened by traffic congestions, air quality, regional water wars and other quality of life considerations which, if not adequately addressed, could threaten this rate of growth. The redevelopment of Gwinnett Place Mall into a mixed-use metro core exemplifies the types of strategies required to combat these challenges. Putting people closer to where they work, creating more walkable communities and developing cores at a density that will one day support transit are key to creating a more sustainable Atlanta region, one that can add, on average, 60,000 net new jobs annually. Employment growth in Gwinnett County has been strong over the past decade, averaging more than 10,000 net new jobs per year over the past seven 34 years. Office-oriented employment growth in the areas surrounding GPM has also been significant. Over the past three years, the Northwest/ I-85 corridor has captured more than three times its “fair share” of office absorption (representing under 10% of current space compared to 32% of absorption). Although the past few years have been somewhat atypical of metro office trends, this nevertheless suggests very strong momentum for future office development. While most areas were losing occupied space, the northeast corridor was gaining. Employment in the Gwinnett Place Mall study area (defined as census tracts 505.17 and 502.07.) has grown over 173% from 1990 to 2000 according to ARC employment growth data. Office sector, F.I.R.E. (finance, insurance and real estate) jobs in the GPM study area increased 47% from 3,532 jobs in 1990 to 5,176 jobs during the same period. Historically, we have had a lower concentration of office-using jobs as compared to other metro cores. The chart on page 34 illustrates the concentration of F.I.R.E. (finance, insurance and real estate) jobs in GPM relative to other suburban metro cores. Prepared by HOK, Robert Charles Lesser & Co., US Infrastructure, and URS 10 2% 0 -10 0% -23 -20 Employment Growth 2006 (F) 2005 (F) 2003 2004 (F) 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 -2% 1992 1990 1989 1988 1987 1986 1985 1984 1983 1982 1981 1980 1991 -22 -40 Percent Growth Figure 14 GSU Employment Projections Local Office Market Conditions The local office market currently suggests some near term potential for new demand but is more indicative of what is possible in today’s market, given limited employment growth and a challenged environment. The Gwinnett Place Mall study area falls in the northeast office market as defined by CoStar Group’s Jamison File. Consisting of over 14 million square feet, the northeast office market is one of the fastest growing in Atlanta. Over the last 5 years, the northeast market corridor accounted for 32% of all metro Atlanta office absorption, approximately 500,000 per year, representing over three times its fair share. Within the GPM study area today there is currently 2.5 million square feet of usable office space and approximately 565,000 square feet planned for construction. This accounts for approximately 20% of all the office space in the northeast market and 44% of all space in the Duluth/ Suwannee/ Buford sub-market. Most of the existing office buildings were constructed between 1990 and 2000. Current lease rates range from $14.75 to $21.50 per square foot in the GPM area and average lease rates are Gwinnett Place Mall Revitalization Plan • October 21, 2004 2.Objectives: Job Growth 52 31 4% Percent Growth in Employment 63 84 86 83 56 6% 43 11 20 8% 32 31 34 48 49 56 60 63 60 40 84 86 98 96 79 80 27 Number Change in Employment (000's) 100 approximately $17.00 per square foot, compared to average lease rates in the northeast market of $16.50 and $16.97 in the Duluth/ Suwannee sub-market. Overall vacancy in the GPM study area is currently at 13%, which is well below the 23% vacancy in the metro Atlanta office market, the 21% in the northeast market and Gwinnett County’s 29% vacancy rate. Satellite Place is the largest business park in the GPM area with 11 buildings and over 947,734 square feet of usable space. Over 40% of the area’s current overall vacancy occurs in Satellite Place; one of the eleven buildings is vacant producing 132,000 square feet of available space. Class A office space in the GPM study area is well positioned and has performed well in comparison to the metro Atlanta market and northeast sub-market. Current GPM class A vacancy is approximately 10%; corresponding class A vacancy in metro Atlanta and the northeast sub-market are 25% and 22% respectively. Vacancy is lower in the GPM study area while average Class 35 A lease rates, currently at $19.17 per square foot, are also lower than average metro Atlanta lease rates of $20.82 per square foot and slightly higher than the $18.69 per square foot lease rates in the northeast sub-market market. Overall office market performance in the GPM study area over the past five years remained strong and steady while historically stronger neighboring markets experienced increasing vacancy rates, slowly declining lease rates and decreased annual absorption. Current market performance coupled with projected ARC office sector employment growth over the next 25 years are clear indications that the GPM office market is well positioned to experience continued positive growth. Recommendations In order to capitalize on the emerging trends of real estate and continue its rate of employment growth, Gwinnett Place must position itself to compete with nearby cores that are currently much more appealing in that they are easier to develop and aesthetically more attractive. These issues are discussed more fully in the mobility and urban design standards chapters. In order to quantify the extent to which Gwinnett Place may be able to capitalize on these trends, we conducted a statistical demand analysis taking into consideration regional job growth, directions of growth, the northeast corridor’s capture of the growth and the ability of GPM to compete within the northeast sub-market. The result is demand potential for over 4 million square feet over the next 25 years. (See Figure 15 on pg. 37) J1 PLAN FOR SHORT AND LONG TERM OFFICE GROWTH • The plan should provide for over four (4) million square feet of additional high quality office development over the next three decades. • The Atlanta Regional Commission (ARC) projects Metro Atlanta will add 1.5 million net new jobs in over the next 25 years. Taking 36 The addition of office to the study area will give Gwinnett Place a foundation for the rest of its revitalization efforts. Prepared by HOK, Robert Charles Lesser & Co., US Infrastructure, and URS 13- County Atlanta Area Total 2005 - 2010 2010 - 2015 2015 - 2020 2020 - 2025 2025 - 2030 TOTAL 2005 - 2010 2010 - 2015 2015 - 2020 2020 - 2025 2025 - 2030 TOTAL 14,729,225 18,017,928 24,005,876 27,226,168 21,873,711 83,979,196 NE Submarket Capture 23% 23% 23% 23% 23% 3,424,545 4,189,168 5,581,366 6,330,084 5,085,638 24,610,801 • Assuming current capture rates for Duluth/Suwanee Area Anticipated Capture both the Duluth/Suwanee sub-market’s 2005 - 2010 40% 1,369,818 capture of northeast growth (40%) and 2010 - 2015 40% 1,675,667 2015 - 2020 40% 2,232,546 the study area’s capture of the Duluth/ 2020 - 2025 40% 2,532,034 Suwanee sub-market (44%), up to 2025 - 2030 40% 2,034,255 TOTAL 9,844,320 17,000 of these jobs and over 4 million square feet of the new office space GPM TOTAL Potential Capture (assumes aggressive and proactive strategy) could be captured in the study area. 2005 - 2010 44% 602,720 This creates approximately 600 new 2010 - 2015 44% 737,294 jobs annually leading to an absorption 2015 - 2020 44% 982,320 2020 - 2025 44% 1,114,095 of between 125,000 and 225,000 2025 - 2030 44% 895,072 square feet of new office space per year. TOTAL 4,331,501 Est. Total New Workers 17,326 This strong growth potential assumes Figure 15 Chart showing the time frame & established capGwinnett County has taken steps ture rate for Multi-story Office Development to correct the traffic congestion and continues to improve the general aesthetics of the study area. 2.Objectives: Job Growth into account both historic and recent absorptions for the northeast submarket and assuming an aggressive and proactive strategy to attract growth in the corridor, it is predicted to attract approximately 23% of all Metro Atlanta job growth. This results into 75,000 office-using jobs, translating into approximately 4 million or more square feet of office space by 2030. • Because of the lack of undeveloped land, encourage re-development of existing parcels. Mixed-use zoning will allow developers to redevelop struggling retail into more vibrant centers, including a significant office component. • If there is not much pro-active involvement, the study area could easily lose these new jobs to greenfield developments such as Huntcrest. These sites can be used for office development to capture the over 1.5 million new jobs coming to Metro Atlanta in the next 25 years, transforming Gwinnett Place mall area into an urban core. J2 GIVE DEVELOPERS NEEDED INCENTIVES TO HELP REPOSITION UNDER-PERFORMING RETAIL As part of the policy objective the county needs to actively work with the private sector to encourage development and attract new jobs. Gwinnett Place Mall Revitalization Plan • October 21, 2004 37 J3 BEGIN WORK ON A PROJECT FROM A PLANNING AND DEVELOPMENT PERSPECTIVE THAT CAN DEMONSTRATE THE POTENTIAL FOR NEW OFFICE IN THE AREA An early win should be identified to illustrate the potential for office development and set the precedent for the future. J4 WORK WITH THE CHAMBER TO AGGRESSIVELY PURSUE A MAJOR TENANT As part of a major campaign, the key stakeholders, Gwinnett Place CID, and the chamber should identify and pursue candidates. J5 ENSURE ADEQUATE INFRASTRUCTURE TO SUPPORT OFFICE GROWTH The mobility improvements will be key to attracting major tenants to this area. Costs The fiscal impacts of replacing struggling retail with office are discussed in the following chapter. 38 Prepared by HOK, Robert Charles Lesser & Co., US Infrastructure, and URS Problem Statement Based upon local population, employment base, and potential regional shoppers, there is simply too much retail space located within the Gwinnett Place study area relative to what can be supported. The introduction of new retail further north on I-85 has significantly cut into Gwinnett Place Mall’s (GPM) trade area, diminishing the opportunity for regional retail such as the mall itself and big box stores. A plethora of competition and insufficient demand have led many retail centers in the area to Example of vacant retail space within the study area either struggle or fail. With supply and demand conditions out of balance, the redevelopment strategy must find a way to positively influence demand (introduce more housing and/or workers) and supply (removing under-performing retail). Proactively addressing this situation will protect and enhance Gwinnett’s tax digest. 2. Objectives: Retail PRUNE UNDER-PERFORMING RETAIL The Gwinnett Place Mall study area is gorged with over 4.3 million square feet of retail space within a one mile radius. The over-supply of retail in this small characterless area, combined with the infringement of overlapping trade areas of newer nearby malls has led to high (over 20%) vacancies in the face of declining rents. These vacancies are nearly double the Northeast Gwinnett sub-market, which averages 10.4% overall. Many of the vacancies are associated with AVERAGE SALES PER SQUARE FOOT $250 $221 $200 $197 $137 $150 $136 $100 $50 $0 U.S. State of Georgia Gwinnett County Gwinnett Place Mall Study Area Figure 16 Average retail sales per square foot Gwinnett Place Mall Revitalization Plan • October 21, 2004 39 GWINNETT PLACE MALL Figure 17 Trade Map larger, anchor tenants who have relocated in some cases to other sites within the study area. Many of the centers that are experiencing high vacancies are poorly maintained, older, increasingly obsolete facilities. Indicative of increasing vacancies, retail sales per square foot have fallen dramatically, averaging below $140 per square foot (compared to the Georgia median of $197). As illustrated in Figure 16 on pg. 39, the study area’s sales per square foot numbers fall below the state and the nation, indicative of oversupply. When looking at the supply and demand situation in the study area, it is clear that the area is oversupplied. When it first opened in 1984, Gwinnett Place Mall and the surrounding retail were able to attract shoppers from a large area. With the addition of new regional malls including Mall of Georgia, Northpoint, and Discover Mills, the trade area has been severely sliced. The graphic above shows 8-mile trade areas for the regions’ malls, illustrating the severity of the competition and diminishing support for retail at this location. (See Figure 17 above) 40 Based on household expenditures, the study area is currently able to support just over 2 million square feet of regional serving retail , whereas currently there is around 3.5 million square feet of regional retail inventory. The result is demand, or retail expenditures, being spread across too much space and too many stores, which results in below average sales per square foot for the retailers. The laws of supply and demand tell us that when there is too much of something (in this case retail) relative to demand, it becomes less valuable. The excess retail in the study area is making it difficult for the retailers to thrive, thereby driving down property values. Declining property values would have a negative effect on the amount of taxes the county receives. By “pruning” away some of the existing retail space and allowing for redevelopment, two things can happen. First, by reducing the amount of retail in the area, it allows for less competition among retailers. This will have a positive affect on sales per square foot for the remaining retailers, pushing land values and in turn tax collections higher at those locations. In addition, the county benefits from additional tax collections on the redevelopment sites. Bottom line, the county walks away with more revenues Prepared by HOK, Robert Charles Lesser & Co., US Infrastructure, & URS Shopping center owners and tenants find themselves in a situation where they are experiencing positive cash flow and therefore can maintain their businesses but do not have the resources to redevelop their properties when they fall into decline. Moreover, the positive cash flow outweighs the cost associated with demolition in order to redevelop as an alternative land use so without some form of incentive or outside intervention, the land use will remain as deteriorating retail. Many centers in the study area are in the latter phases of the retail life cycle and are suffering from disinvestment. This retail life cycle is illustrated on the chart below. (See Figure 18 below) 2. Objectives: Retail while Gwinnett Place benefits from redevelopment. Based on proprietary models, looking five years out, approximately one million square feet of retail could be “pruned” away from the Gwinnett Place study area. Once the market stabilizes (meaning sales per square foot rises for the remaining retailers), county tax collections become equal. As the redevelopment sites transition to different uses, the county will benefit from additional tax revenues. Among the retail centers that are performing the best are those that are located along Pleasant Hill past Satellite Boulevard. Pleasant Hill Square Shopping Center is the newest center in the area, built in 1998, and enjoying success, with a vacancy of 2%. Gwinnett MarketFair is also performing very well (100% leased), and although older, has retained strong tenants including; 30 25 Value 20 15 10 5 0 0 5 10 15 20 25 Time (Years) Conventional Development Progressive, Sustainable Development Figure 18 Graph of Retail Life Cycle Marshalls, T.J.Maxx, and Bed, Bath & Beyond. Unfortunately, many centers are struggling with many large, vacant spaces, including the Macy’s at Gwinnett Place Mall, the old Wal-mart space at Pleasant Hill Plaza, and the Prado. There are simply not enough retail expenditures and therefore tenants to go around. These centers, suffering from high vacancies, declining rents and disinvestment become the most ripe for “pruning.” “Pruning” can be challenging and often requires actively engaging the property owners to find a mutually beneficial solution. In other areas within metro Atlanta, retail centers are being redeveloped because retail no longer represents the highest and best use. Acres Mill in Cumberland-Galleria and Lindbergh Plaza in Gwinnett Place Mall Revitalization Plan • October 21, 2004 41 Atlanta both represent situations where the retail centers have aged while the overall real estate market has evolved to support greater intensity on the land. Financially, it no longer makes sense for the centers to operate as shopping centers alone and there is a higher and better use for them as a mixed-use or higher density development. Longer term, this will likely be true for Gwinnett Place. In the near term, however, proactive strategies are required to help bring the retail market back into balance. Figure 19 Map or areas where retail would be pruned within the study area 42 Prepared by HOK, Robert Charles Lesser & Co., US Infrastructure, & URS R1 PRUNE AWAY UNDER-PERFORMING RETAIL. Over the next ten years, unsupportable and obsolete retail should be removed, and as new demand generators dictate (additional office employment, new ownership housing, etc.) over time, replaced with roughly the same amount of higher value retail space. Three strategies that may be employed to encourage redevelopment are: R2 FOSTER PUBLIC / PRIVATE PARTNERSHIP OR JOINT VENTURE • If there were an opportunity for government offices or some other County facilities to move to a new location they could provide an anchor for the redeveloped site and help offset some of the infrastructure costs. One key infrastructure cost is parking. If a public entity can pay for structured parking (should it be required) there is a tremendous value to the private developer. R3 2. Objectives: Retail Recommendations ALLOW FOR GREATER INTENSITY • Through the Revitalization Zoning Districts (RZD) outlined in the next chapter, the County could provide a “carrot” for the land owner to redevelop the site or for the owner to sell to another interested party. Zoning that allows for higher density and a mix of uses makes the property more valuable redeveloped than as a deteriorating strip mall. This strategy would require some advertising of the opportunity available to developers. The Prado is a prime candidate for redevelopment Gwinnett Place Mall Revitalization Plan • October 21, 2004 Former major retailers in the study area have transitioned to other uses. 43 • This is likely the most appropriate and feasible within the study area. The County could allow greater density on identified properties to allow them to convert to mixed-use development. In particular, there is market support for additional residential development in the area but in order to convert a commercial property to residential and make financial sense, it has to be developed at a density that is comparatively high to that which has been developed in the area to date (density recommendations are @ 50-60 units / acre and outlined in the RZD matrix in the Urban Design Objective). An overview financial analysis of shopping centers in the study area suggests that the sites could be purchased at a fair market value, given the current commercial use, and converted to purely residential if residential could be developed at a density of a minimum of 30 to 40 units to the acre. The density is important to allow a developer to deliver product that would be the affordable for the market audience, given their incomes and allow current renters to become owners. R4 ENTICE MIXED-USE DEVELOPMENT • Entice developers to redevelop waning retail centers with high-density, mixed-use projects consisting of a combination residential, retail, and most important, office. In the coming 5 to 10 years, we recommend that approximately 750,000 square feet of space be pruned away, replacing this space with office development and mixed-use development. Currently in the study area there are several sites identified in the Vision Plan that could potentially make good candidates for redevelopment. A result of the Rich’s-Macy’s merger, Gwinnett Place Mall lost one of its lead tenants when Macy’s vacated its approximately 300,000 square foot space last year. With four anchor tenants already located at the mall, it is unlikely the mall will attract a fifth and therefore an opportunity exists to redevelop this space. Another parcel ripe for redevelopment is Gwinnett Prado. After Kroger vacates later this year, the majority of the 300,000 square feet at the Prado will be vacant. With Super Wal-Mart locating just north of the study area, Wal-Mart closed its store at Pleasant Hill Plaza. Assuming a new tenant has not been landed, a large percentage of Pleasant Hill Plaza Replacing existing single use centers with street oriented mixed-use will transform Gwinnett Place into the place to be. 44 Prepared by HOK, Robert Charles Lesser & Co., US Infrastructure, & URS 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 (1,000,000) 2003 2008 Retail Supply 2013 Retail Demand 2018 2023 2028 Over/(Under) supply 2. Objectives: Retail REGIONAL RETAIL SUPLLY/DEMAND Figure 20 Retail Supply/Demand Chart will remain vacant. In addition to the vacancy is the aesthetics of the center, which have not been updated since built in 1990. The total gross-leasable area of the three sites mentioned above is a combined 800,000 square feet of near-empty retail space, of whose land could be utilized by redevelopment. Although the study area is over-supplied with regional serving retail space, the area is more balanced in terms of locally serving neighborhood space. That being said, much of the space is in undesirable locations or configurations and the area as whole lacks “Main Street”, pedestrian oriented retail. The Vision Plan calls for approximately 7,000 new housing units and office space catering to over 15,000 daytime employees, the two major drivers of neighborhood serving retail. So although there is not a statistical need for more retail space, there is a need and there would likely be support for new retail formats. Finally, based on the build-out of the study area with office and retail, Gwinnett Place Mall area can rebuild to its current levels of retail over the next 25 years. Assuming the additional residents and workers, by 2020, we will be able to have returned to the current level of retail. Gwinnett Place Mall Revitalization Plan • October 21, 2004 45 46 Prepared by HOK, Robert Charles Lesser & Co., US Infrastructure, & URS