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HomeMy WebLinkAboutIEDC - PA DOWNTOWN REVITALIZATION STATEGY (FINAL REPORT)Port Arthur Downtown Revita I ization Strategy Final Report ,, - =• , _ - - ~ , - -~ ~ ., fly - ~ _, _ •^ _ te~r.{~~'.: j ~.. _ - . 1111 ` ~911ii~ ~~ Q G~ - _ I -. ~ ` ~1'~'f 4T ` + + ~~ L. ~ ~ ~ ~ . .~ ;~ , tip. ~,• '~ >,~ .. J ~~ 1 1. ~ µ ~~ • • •_- \ _ ~4 ,~. ~ ` ~ ~. ~ rl ..:Eiiida ~ ~. - ~`f1 ~ j - I i - .~ - - -~,.~ June 2009 INTEKNATIUNAL ECONOMIC DEVELOPMENT COUNCIL Submitted to: City of Port Arthur and Port Arthur Economic Development Corporation June 2009 r IEDC Member Panelists: Kurt Weigle, Executive Director Downtown Development District of New Orleans (New Orleans, LA) ' G. Lamont Blackstone, President G. Lamont Blackstone & Associates (Mount Vemon, NY) Dave Wilcox, Independent Consultant (Colorado Springs, CO) Project Manager and Primary Author: Swati A. Ghosh, Sr. Economic Development Associate Intemational Economic Development Council (Washington, DC) Staff: Louise Anderson, Sr. Economic Development Associate International Economic Development Council (Washington, DC) Research Support Eddie Bates, Research Intem Nancy Moorman, Research Intern 1 Port Arthur Downtown Revitalization Strate Table of Contents I. INTRODUCTION AND OVERVIEW .............................................................................1 DOWNTOWN REVITALIZATION DISTRICT ............................................................................................ 1 II. KEY OBSERVATIONS ................................................................................................3 ASSETS AND STRENGTHS ................................................................................................................. 3 CHALLENGES AND CONSTRAINTS ...................................................................................................... 4 111. RECOMMENDATIONS AND IMPLEMENTATION STRATEGY ......................................6 A) ESTABLISH A DOWNTOWN REVITALIZATION ORGANIZATION ........................................................... 6 B) DESIGNATE THE DOWNTOWN REVITALIZATION DISTRICTAS A TAX INCREMENT REINVESTMENT ZONE. 16 C) DEVELOPA DOWNTOWN REVITALIZATION PLAN ........................................................................ 17 D) UNDERTAKE AGGRESSIVE MARKETING EFFORTS ......................................................................... 26 E) ATTRACT RETAIL ACTIVITY TO DOWNTOWN ............................................................................... 28 F) CREATE HOUSING OPPORTUNITIES DOWNTOWN .................................... ..... 31 .............................. G) IMPROVE QUALITY OF LIFE ........................................................ .......................................... 32 IV. SUMMARY AND CONCLUSIONS .............................................................................37 V. APPENDICES ................................................... .........39 .............................................. VI. BACKGROUND REPORT .........................................................................................99 IEDC Technical Assistance Report j 1 i~ n u i~ i~ Port Arthur Downtown Revitalization Strate I. Introduction and Overview The International Economic Development Council (IEDC) has been retained by the City of Port Arthur, Texas, and the Port Arthur Economic Development Corporation (PAEDC) to develop a revitalization strategy for downtown Port Arthur focused on implementation. Port Arthur's downtown has seen significant disinvestment over decades and continues to be in poor condition in spite of regional economic growth due largely to considerable investment by the petrochemical industry in recent years. The city and PAEDC want to take advantage of this industry's anticipated X12 - 15 billion investment in the region over the next three to five years to grow the Port Arthur economy and improve quality of life for its residents, particularly by revitalizing the downtown and surrounding neighborhoods. Many city stakeholders believe that a unique window of opportunity is now open to re~-italize this area. In order to assist the city and PAEDC v~-ith their downtown revitalization goals, IEDC assembled a team of expert panelists, drawn from the IEDC membership and staff, and conducted a site visit on February- 25 - 27, 2009. The team comprised the following members: • Kurt ~x'eigle, Executive Director, Downtou-n Development District of New Orleans • G. Lamont Blackstone, President, G. Lamont Blackstone and Associates • Dave Wilcox, Independent Consultant • Louise Anderson, Sr. Economic Development Associate, IF.,DC (staff) • Swati A. Ghosh, Sr. Economic Development Associate, IEDC (staff) In preparation for the site visit, IEDC staff compiled a background report for the team, u>hich is attached at the end of this report. This Final Report huilds on those recommendations and pro~rides additional details as well as relevant case study examples to demonstrate ways in which other communities have implemented downtown revitalization projects. The objective of this report is to present realistic strategies for downtown revitalization while outlining implementation guidelines. Responsible agencies, resources needed and suggested timelines have been included where possible. The IEDC team believes that the tint ultimately is responsible for implementing the recommendations provided in this report, starting with the creation of a neu~ downtown public-private partnership and development of a downtown plan (discussed in detail later). PAEDC will be a strong partner throughout the process as well. Downtown Revitalization District This report's recommendations are targeted within a designated area of Port Arthur that extends from the eastern boundary of the ~~'estside neighborhood to the eastern boundary- of Lamar State College (i.e., from Houston Avenue on the west to Lake Charles Avenue on the east). The northern border of this Downtown Revitalization District is 9`'' Street and the southern border is the Lakeshore Drive (see Figure 1). Properties on both sides of the boundary- streets should be included in the re~ritalization district so as nor to restrict redevelopment to one side of the street. IEDC Technical Assistance Report ~ i, 1 n i~ i~ i~ Port Arthur Downtown Revitalization Strate y Figure 1: Downtown Revitalization District Boundaries w r • ~ '~ ~ J ~. i9 r ~ Port Arthur Yrn CIIM ~ 'r/ ~~- .f r ~ , ,. ~~ ~~ ~. r is ~ ,~ ..~~ / i>• ~~~ M~ 4 r Westside L d K~ ,n ~ ' :. ,ffi This proposed district is designed to be much larger than just downtown for many reasons. First, the entire area has been impacted by disinvestment and to a large extent is characterized by similar trends in vacant and abandoned properties, loss of population and businesses, and dilapidated buildings. Therefore, a larger tax increment financing (TII~ district (discussed later) can be established to capture the benefit in the broader area and allow for larger tax increment collections to be invested into downtown revitalisation. Second, Lamar State College is an important partner in downtown revitalization. Even though it is located outside the downtown and cannot he considered as blighted, it should be included as much as possible in the downtown development process. Attributes of the proposed downtown revitalization district include: • Number of city blocks =approx. 115 • No. of ]ots =approx. 1,820 • Cross area (including roads, sidewalks, etc.} =approx. 490 acres or .75 square miles • Net area = 75% of gross acres =approx. 3G5 acres or .5? square miles • Average size of block = approx. 2 acres • Current major employers in the area =City of Port Arthur, Sub-District Courthouse, Post Office, Lamar State College Port Arthur IEDC Technical Assistance Report 2 II. Key Observations Port Arthur Downtown Revitalization n It i~ [1 i~ Port Arthur stakeholders agree that now is an opportune time in the development efforts of the city. Unprecedented levels of private investment are expected in the local economy over the next three to five years. This can be combined with newly authorized 4b ta.Y revenues (more on this below), and federal dollars available through the American Recovery and Reinvestment Act (the "stimulus bill") and the regular budget process, to direct unprecedented resources into the downtown and ~x'estside. In addition, in interviews with the IEDC team, Port Arthur stakeholders recognized the importance today of a vibrant community in attracting talented workers and in inspiring young people ufho grew up in the city to stay or return. Below is a compilation of the key strengths and challenges observed by the IEDC team during the site visit and follow-up conversations. Assets and Strengths Investment by Industry The petrochemical industry will be investing an estimated X12-15 billion in the regional economy around Port Arthur through plant upgrades and construction of new facilities over the next three to five years. `~Uhile the investments will be made outside of the city limits, they will create 300-400 permanent john for the region. Furthermore, the multiplier effect of the im-estment will create additional jobs and development opportunities. For example, a number of hotels have been built in the past couple of years in Port Arthur to pro«de temporary housing to construction workers im~oh~ed with the refinery expansions. Increased demand for housing, schools, retail and services is also anticipated. Assets Available The waterfront and availabilinr of land along it are tremendous assets in revitalization efforts. The city has demolished a number of dilapidated buildings in the downtown area, leaving parcels available throughout the downtown For development projects of various types. Dourntown also has several historic properties (including one on the National Historic Register), providing opportunities for accessing federal and state funds for historic preservation as part of revitalization efforts. In addition, Lamar State College is a thriving institution and is planning modest expansion projects to be located close to downtown as well. Regional Economic Base As in many Gulf Coast communities, the petrochemical industry is a major component of Port Arthur's economic base. The industry has expanded in the region ' in recent years and continues to do so. The industry's strength in the Port Arthur- Beaumont region has helped it to experience relative economic stabiliri~ and modest growth despite the global economic recession so far. ~ ~ IEDC Technical Assistance Report 3 l tl Port Arthur Downtown Revitalization Strategy Confluence of Commitments Ci~~ic leaders, tint council members, business owners, and other stakeholders inten~iewed by the IEDC team all expressed great interest in and hope for revitalizing the area. The PAEDC recently obtained voter approval to utilize a dedicated funding stream for downtown projects that will assist in attracting developers to downtown as well as provide funding for redevelopment projects. The city also has indicated that funds could be made available for redevelopment and revitalization projects for downtown and Westside. There is a growring sense of urgency among city leadership to capitalize on the investments being made in the region and revitalize the area. Significant Regional Festivals The Port Arthur Mardi Gras draws up to 250,000 people from around the Beaumont-Port Arthur region and beyond over a 3-dap period each year. Other local cultural festivals and celebrations such as the Mercado Daps, jazz Festival, and Lotus and Bamboo Day also attract ~~isitors from throughout the larger region, though in smaller numbers than Mardi Gras. Port Arthur can capitalize on this regional appeal to promote its progress and attract potential residents and businesses back into Port Arthur and downtown. Challenges and Constraints History of Disinvestment and Resulting Blight Downtown Port Arthur used to be a vibrant place for people to work, lire and be entertained. However, over the past several decades, businesses and residents have moved out of the downtown and the city in general to outlying areas for higher quality of life and better schools. Only a handful of businesses and institutional uses remain downtown, and those are declining as well (the Port Arthur Independent School District is the biggest loss in recent times v~rith the move of its administrative offices out of downto~cn to another location in the citt•). This has left many abandoned and vacant properties in downtown, mostly in disrepair, creating a climate of neglect that hinders new private investment in downtown. The cite has been working on demolition of buildings, but a large number remain, some of which also have issues with contaminants such as lead-based paint and asbestos. Rehabilitation of buildings is often very expensive and costs are not translated into increased property values because of the depressed property values in the surrounding area. Geographically Constrained Market Area ~~'estside and downtown lie on the southern side of Port Arthur, bounded by the Sabine-Neches Pass Channel to the south. The refineries are clustered on the west and north sides of the city. Therefore, accessibility to the area is primarily through V~'oodworth Blvd running north-south, and Gulftvay Drive and Procter Street running east-west; there is no direct highway access. Limited connecti~~ity with the IEDC Technical Assistance Report 4 Port Arthur Downtown Revitalization Strategy rest of the city and loss of businesses downtown has resulted in reduced traffic and increased difficulties in retaining and attracting much-needed retail sen-ices in this area. Population Loss The cities of Port Arthur, Beaumont and Orange, and Jefferson County have been losing population over the last several years. People appear to be mo~~ing to outlying areas for larger land parcels, better ser~rices and newer homes. As residents have moved out, businesses and sen-ices have moved or closed as well, and the cycle of abandonment continues. Public Safety Perception The blight in downtown and 1~'estside has created a negative perception about public safety, which has discouraged Port Arthur residents and businesses from investing in the area. Yet businesses and workers in downtown feel this perception is unfounded. In fact, when the city wanted to establish a ~~'eed and Seed site in the area, the crime statistics in the area were not high enough to allow its creation. Parts of downtown and ~G'estside were later included in a 1~'eed and Seed site established outside of downtown. Move of the School Board Administrative Offices from Downtown The Port Arthur lndependent School District (PAISD) currently has its administrative offices downtown, in addition to a bus yard. In conjunction with a bond issue for upgrading school facilities and construction of new campuses, the school board is moving its offices out of the downtown. The move is resulting in the loss of 200 jobs (including staff and bus drivers) from downtown, a significant loss of activity given the few employers that remain. The multiplier effect of the loss may be minimal as there are few support services in downtown, but given that public sector institutions are the only major employers currently in downtown, the PAEDC and the cin~ had hoped to retain the PA1SD and enlist it as a partner in building a critical mass of acti~~ity in that area. Repeated efforts by the PAEDC and the city to retain these offices downtown have failed. Reasons cited for the move include needing larger space to adequately accommodate staff, unsafe working conditions in the existing buildings, and availability of space in a more central location for easy access by staff and teachers. IEDC Technical Assistance Report 5 i Port Arthur Downtown Revitalization Strate III. Recommendations and Im I p ementation Strategy Based on the above-mentioned strengths and challenges, the IEDC team believes that the revitalization of Port Arthur's downtown will come from a strategy that combines long-term planning, short-term action steps, and financial incentives to attract private-sector investment. To achieve this, Port Arthur (i.e., the city, PAEDC and other downtown stakeholders) must develop a roadmap for downtown development that builds on existing assets and addresses weaknesses. Recommendations are organized under two separate categories -organizational and physical development. The organizational recommendations pro~~ide the framework and mechanism for implementing the physical development recommendations, which include projects identified by the IEDC team to revitalize downtown. The major recommendations are: 1. Establish a Downtown Revitalization Organization 2. Develop a Downtown Revitalization Plan 3. Undertake Aggressive ]4larketing Efforts 4. Increase Housing Opportunities Downtourn 5. Attract Retail Acti~rity to Downtown 6. Improve Quality of Life The recommendations aze summarized at the end of the report according to resources needed to implement and priority. Please refer to Section I~' for these details. a) Establish a Downtown Revitalization Organization Revitalizing downtown Port Arthur will be a long process, perhaps 10 to 15 years. It is vital that this long and complex undertaking have its own dedicated management to shepherd the process. Therefore, a new organization should he established with the explicit mission and goals of revitalizing downtown, providing continued leadership and management, and keeping stakeholders engaged in the process throughout. The new organization should be set up as apublic-private partnership to bring an array of expertise, leadership and resources to the table. This new organization is referred to as the Downtown Public Private Partnership (Downtown PPP) throughout the remainder of the document. The Downtown PPP should be an independent entit4-(outside of city government), possibly anot-for-profit organization, to allow flexibility in seeking and leveraging private sector resources, as well as shielding the organization from undue political influence. But, the Downtown PPP Evill work closely with the public sector i.e. the city and PAEDC, in implementing downtown projects at all times. Broad-based bu}~-in from all dou-ntown stakeholders, from the ver}' beginning, will be critical to the continued success of the new organization. Getting key stakeholders involved in the leadership of the new organization through a process of nominations to IEDC Technical Assistance Report g Port Arthur Downtown Revitalization Strate the board of directors (described below in detail) is one wa}~ of achieving this objective. ' ~X~ hi]e it is necessary to have representation from a variety of stakeholders on the board , there is a tradeoff between the number of members and their ability to be focused, achieve a consensus, or act decisively and effectively. Therefore, the IF.,DC team recommends establishing a small and nimble board of directors with an emphasis on business leaders. Board of Directors Board of Directors Strong leadership and clear vision are the cornerstones of any successful organization. Rn active and diverse board of Bringing in the right leaders to the governing directors can bring the organization: body will ensure that the mission is balanced • Knowledge and ex ertise about p ~~-ith the external em~ronment. The practical communit}• development and the means by which aboard accomplishes this corporate world includes: ' • Leadership and management • Financial oversight techniques • Strategic planning • Access to financial capital through • Raising funds local, regional, national and • Developing policy international netv~rorks • Communih~ relations • Status and political clout • Monitoring and evaluation • Hiring/firing Executive Director • Development of the Board of Directors • Pro~~iding counsel' The IEDC team recommends a seven-member board that brings expertise in finance, real estate development, retail/commercial attraction and government relations to the Dottintown PPP. IEDC recommends the follou-ing composition for the board of directors: • City of Port Rrthur - 3 seats, with at least one appointment from the petrochemical industr}=such as the Port Arthur Industrial Group ' • PREDC - 2 seats, with at least one appointment from the petrochemical industr}- such as the Port Arthur Industrial Group • Chamber of Commerce - 1 seat • Lamar State College Port Arthur- 1 seat This structure will result in a diverse board with input from both the public and private sectors. F.ach nominating entity will provide three nominations for each board seat. The nominations will be confirmed by the Port Arthur City Council from among the nominations submitted. Board members will be appointed for staggered, fixed terms of three years. ' Nummei, Joan M. Starting and Running a Nonprofit Organization, Second Edition, (Minneapolis, University oiMinnesota Press, 9996) IEDC Technical Assistance Report 7 _ Port Arthur Downtown Revitalization Strategy It is important to note the significance of engaging major private sector employers in the downtown re~ritalization process. 1k~'hile the petrochemical industry is the major private sector employer in the city and region at this point of time, other private businesses may emerge to be important leaders in the future. The Downtown PPP, city and PALDC may want to alter the board structure at that time to reflect the economic mix in Port Arthur. Below are the details for the nomination procedure for each entity: Board Structure Overview Total Number of 7 Seats Board 1\Iembers Terms S eyed, Fi_~ed Term of Three 3 ears City of Port Arthur Total: 3 seats, nominated by the City Council - Required that 1 seat be filled b}- senior management from major private sector employers. Senior management from the petrochemical industry, perhaps the Port Arthur Industrial Group, should be appointed for the seating of the first board Port Arthur EDC Total: 2 seats, nominated by the Executive Director and the Board of Directors - Required that 1 seat be tilled by senior management from major private sector employers. Senior management from the petrochemical industry, perhaps the Port Arthur Industrial Group, should be appointed for the seating of the first board - Board of Directors can self-nominate Chamber of Total: 1 seat, nominated by Executive Director and Commerce Board of Directors - Executive Director or Board of Directors can self- nominate Lamar State Total: 1 seat, nominated by University President and College Port Arthur Board of Trustees - university President or Board of Trustees can self- nominate It will be the responsibilitsT of the nominating agencies to provide qualified candidates for each board seat that reflect expertise in at least one of the following areas: finance, real estate development, retail/commercial attraction and government relations. It will be the responsibility of the City Council to balance the expertise on the board -ensuring that all the above-mentioned qualifications are represented while finalizing the appointments. A majority of the board members should come from the Port Arthur business community and drive im-estment into the area. IEDC Technical Assistance Report $ Port Arthur Downtown Revitalization Strategy ~' In all cases it is expected that the Board of Directors well identify with the mission of the public private partnership and the needs of downtown Port Anhur as their primary motive for serving on the Board. The representatives have a legal and fiduciary responsibilit~~ to the board and must set aside other relationships or potential conflicts of interest when serving on the Downtown PPP board. Staggered Terrn Board appointments will be for a period of three (3) }Tears and the seats will be staggered. Term length will be determined at the first board meeting through a lottery. Tu~o names will be selected to serve one-year terms; tvvo more names will be selected to serve taro-year terms; and remaining three members will sense three-year terms. Terminations ~~'hile the Cit}• Council will be responsible for confirming the nominations and finalizing appointments for the Board of Directors, the Cit~> Counci] will not able to terminate a board member ante he or she has been appointed. Atwo-thirds majority vote of the remaining board uTill be required to terminate a board member (i.e. a minimum of four affirmative votes). The Downtown PPP will need to establish detailed terms and conditions for board member terminations in the bt•laws. Organizational Mission and Geographic Focus The mission of the Downtou-n PPP will be to revitalize dou>ntown b}~ engaging the public, private and non-profit sectors in redevelopment projects. The organization will need to embark an athree-pronged strategy to achieve this mission: 1. Real estate development and redevelopment such as infrastructure improvements, building rehabilitations, beautification, facade improvements, etc. 2. Tenant attraction through marketing, incentives, etc. 3. Event programming to attract people to dou,>ntown e.g. farmers' markets, cultural festivals, etc. The Downtown PPP will be the lead agent}- in implementing total}-tic projects in the downtown re~>italization district. Therefore, an}• major projects undertaken in the dov>ntown re~~italization district should include the Downtown PPP as a major stakeholder in planning, design and implementation to ensure alignment of objectives with larger downtou>n revitalization efforts. In addition to phti>sical development, tenant attraction and event programming in downtown, the Doa>ntown PPP can possibly engage in the management of the area in the long term, especially u>ith regards to extra cleaning and safety services. Downtown organizations frequently have greater capacities to provide these ser~>ices than over-extended city governments. The Downtown PPP will need to secure additional funding to provide increased safetti~ and cleaning sen-ices. IEDC Technical Assistance Report g Port Arthur Downtown Revitalization Strategy Organizational Management Day-to-day activities of the organization will need to be managed b}~ a professional experienced in downtown development i.e. an executive director. S/he will need to hire additional program and support staff for program implementation. Executive Director The Executive Director will be recruited b}' the board of directors and acts as the link betu;een the board and staff of the organization. S/he is responsible for: • Coordinating strategic planning for the organization • Reviewing the organizational policies and programs with the Board of Directors • Providing information and adtince to the Board and its committees • Identif~~ing prospective sources of funding • Acting as an intermediary betu-een committee chairs and the Board Staff The Executive Director will need to hire additional staff to work full-time on downtown issues. However, it is recommended that consultants be hired for the first 6-12 months for critical functions such as marketing, real estate analyses, communications and outreach, fundraising, etc. Full-time staff should be hired once an organizational strategic plan has been created (discussed below), and the need for staff and levels of expertise has been assessed. Office Space and Other Resources The Downtown PPP should be hosted within the PAEDC offices, for at least the initial years. The organization will be focusing on organizational capacity- building during this time. Consultants will provide functional area support as noted ahrn-e. Once staff has been hired, the Downtown PPP should remain co-located with the PAEDC. This will pro~~ide a number of benefits to the Downtown PPP, including ability to share rent and other overhead and general administration costs, ease of access to shared resources (office equipment, etc.), and opportunity for collaboration and information-sharing among staff members of the tlvo organizations. In addition, the Downtown PPP and PAEDC will work closely with each other on key economic development-related topics, such as the use of incentives to attract tenants to do~vntow~n, business retention and expansion, marketing, etc. Two different approaches toward organization can be taken: 1. Management by the PAEDC 2. Hiring separate executive director and staff The advantages and disadvantages of these approaches are discussed in detail below. IEDC Technical Assistance Report 10 Port Arthur Downtown Revitalization Strategy Management by PAEDC The Downtovsrn PPP will work very closely with the PAEDC, especially given that PAEDC may spend up to X750,000 per year in downtown redevelopment projects having received voter approval in the recent elections. Being a small organization with a defined geographic focus, the IEDC team recommends that the day-to-dap operations of the Downtown 1'PP be managed bti• the PAEDC. V~-'hile different in their missions and objectives, the two organizations can build synergies through a common interest in downtown development, relationships with key local and regional stakeholders for economic development of Port Arthur, and the ability to achieve economies of scale through combined operations. Da~•-to-day affairs of the Downtoum PPP, under this approach, will be overseen by the Executive Director of the PAEDC - i.e., the same Executive Director will be responsible to two separate boards of directors. This will allow the Downtown PPP to capitalize on the existing relationships and capaciq~ of the PAEDC, especially in the short term, to undertake critical strategic planning, board development and organizational capacin~-building. PAEDC will share staff resources with the Downtown PPP in certain critical areas such as administrative support, legal counsel, accounting, etc. Obviously, costs for such sen ices will be shared between Downtown PPP and PAEDC. Such costs can be ascertained through a negotiated management fee that the Downtown PPP will pay the PAEDC for a certain set of services. The Executive Director may hire additional staff to work full-time on downtown issues so as not to overwhelm existing PAEDC staff. As mentioned earlier, consultants should be used for critical functions such as marketing, real estate analyses, communications and outreach, fundraising, etc in the beginning. The need for full time staff should be evaluated upon completion of the strategic planning process. The chart below outlines the relationship of the new downtown organization to the city and PAEDC under this organizational mode]. IEDC Technical Assistance Report 11 Port Arthur Downtown Revitalization Strategy Hiring Separate Executive Director and Staff VG'hile the pre~7ous model has its advantages of being eft7cient in the use of scarce resources, having an Executive Director and staff dedicated to the cause of downtown development will possibly pro~7de the level of commitment needed for Port Arthur downtown redevelopment. It will also reflect the city's commitment to dou.ntoa-n revitalization. "I1ie Downtown PPP will still work very closely with the P.~EDC, especially for economic development related projects in the downtown and the use of PAEDC's 4b funds. It is important to point out that irrespective of the approach adopted for the organizational management, the Downtown PPP should be co-located with the PAF,DC, at least for the first few ti~ears. The Downtown PPP will be a small operation during the first ~~ear as consultants provide critical sen•ices. Therefore, it will likely not burden the PAEDC while at the same time ensure that the organization can build on existing capacity and relationship of the PAEDC. r The organizational chart below outlines the relationship of the Downtown PPP to the cin~ and PAEDC under this approach. ~~I 11 IEDC Technical Assistance Report 12 Figure 2: Proposed Organizational Structure for Downtown PPP and Relationship with PAEDC i~ n II II n Port Arthur Downtown Revitalization Figure 3: Organizational Structure for Downtown PPP -Option II Relationship with the Citv The city and Downtown PPP will have a strong relationship throughout the process of downto~tin revitalization and beyond. The success of the Downtown PPP will depend on the city to a large extent, starting with the city's involvement in the creation of the organization. The city must be fully committed to downtown revitalization and prioritizing the needs of downtown in the long term. The Downtown PPP is expected to work closely with the 1~Zayor, City Council and city government departments in the downtown development process on issues ranging from demolition and strategic planning to tax increment reim~estment, public safetz- and more. Various development approval processes such as zoning changes, permitting, inspections, etc., will continue to be performed by the city. The Downtown PPP will act as a liaison with the city to provide seamless customer service to all current and potential downtown stakeholders. Being the key organization for downtown development, the Downtown PPP will receive public funds from time to time to implement projects in the revitalization district. The board of directors will be accountable to the Cin~ Council for the appropriate use of these public funds. $uch funds could include general fund monies from city government; grants and loans from local, state and federal governments; tax increment financing; or any special taxes imposed for downtown-related development. Budget r1n estimated annual budget for the Downtown 1'PP in its formative years will be in the range of X250,000 to X300,000 which will be devoted primarily to human resource and administrative costs, including consultants' fees, lav~-}•ers, etc. This IEDC Technical Assistance Report 13 Port Arthur Downtown Revitalization Strategy budget will be expanded as the organization grows, hires full-time staff and starts implementing projects downtown. Funding Sources In order to be a true public-private partnership, the Downtown PPP will be funded by a combination of public and private resources. It is important to engage the private sector, especially the petrochemical industry, in the economic revitalization of downtown and surrounding neighborhoods. Funds for administrative purposes, as well as program implementation, ~ti~ill need to be raised. All nominating agencies should help supplement efforts of the leadership of the Downtourn PPP in fundraising, especially during the first year. It4aximum effort should be made to get commitments for multiple }rears (at least three years) to ensure availability of funds for the organization during its formative years. The ' responsibility for on-going fund raising will be shared between the board of directors and staff. Private Sources An important funding source for the Downtown PPP will be the petrochemical industry. Having representatives from the industn- on the board of directors will be helpful, but the city and PAEDC may need to put in extra effort to engage the industry in communit}• development and downtown revitalization efforts. Highlighting the benefits of a revitalized downtown for their workforce can be an 1 effective strategy in soliciting their engagement. Other large employers in the city should also be engaged through the Chamber of Commerce. i~ Public Sources The portion of funds from public sources may need to come from the city's general fund during the initial years. The city can choose to allocate part of the additional funds received in FY2009 through its pa}anent-in-lieu-of--tax agreements with the petrochemical industry to the Downtown PPP. The PAEDC has already designated a portion of its funds through the recent approval of a proposition for downtown revitalization. ~~'hile it may not be possible to use these funds directly to support the Downtown PPP staff, they will supplement funds from other resources for downtown-specific projects such as beautification (discussed in detail later), infrastructure improvements and strategic planning purposes. i~ i~ i~ 11 II Tax Increment Revitalization Zone (TIRZ) Funds The IEDC team recommends establishing a Tax lncrement Redevelopment Zone (TIRZ) as a significant source of funding for re~~italization projects. A T1R7. Board will need to be established to manage the zone. The IEDC team is aware that the city is considering establishing a single TIRZ that includes both downtown and the ~'estside and the team fully supports this idea for several reasons: a) both lX'estside and downtown have revitalization efforts underway IEDC Technical Assistance Report 14 Port Arthur Downtown Revitalization Strategy and the cirri will be able to realize greater benefits from ha~~ing a combined TIRZ boundan~, b) greater efficiencies can be achieved through a combined TIRZ without hatiring to create multiple TIRZ Boards, and c) the impacts of revitalization activtit}~ in one location will have an impact on the other location because of their close proximini to each other. Detailed recommendations regarding the establishment of ' the TIRZ, including the relationship between the Douintown PPP and the TIRZ Board, are provided later in the report. Timeline IEDC strongly recommends that the Downtown PPP is established before the start of FY 2010. The Board of Directors should be appointed, the organization should be incorporated (or have that process under wa}i) and funding sources should he in place by September 30, 2009. In addition, it is recommended that the board of directors and executive director enga~7e in a board governance training workshop earhi in the process. The workshop will help educate the leadership of the new organization regarding roles and responsibilities of the board members, expectations and resources avai]able to them to grow the organization. The graphic below outlines critical activities and suggests deadlines within a six month period Qul~i to December 2009). I 1 Figure 4: Timeline for Creating Downtown PPP o~ ' o> a a ° ' .. .. > ° > ° v ~ ~ ; ¢ Q cn c n O O z z D o ~n ~ ui ~ u~ o in ~ ~ o in r r r r C7 ~ ~ (+') Nominations submitted to City Council b Nominatin A encies Final selections made by City Council F -Board of Directors established En a e Ci Attorne for le al counsel Allocate ublic funds Launch regional search and Recruit Executive Director if a livable File Articles of Incor oration Develo B laws Fund raising from private and f oundational sources Board Governance Training and Visionin Exercise organizational Strategic Plan for __ Downtown PPP _ Issue RFP and hire consultants for Downtown Redevelo ment Plan Develo Downtown Plan The board of directors and executive director of the Downtown PPP will need to devote significant time during the first year on organizational capacity-building and planning for downtown redevelopment. t1n organizational strategic plan should be developed first to guide their efforts over the next two to three years by establishing ^ IEDC Technical Assistance Report 15 t Port Arthur Downtown Revitalization Strategy goals, objectives, strategies and performance measures. The process will take at least three months. Next, the Downtown PPP should start the process of developing a downtown redevelopment plan. It is recommended that a professional planning and design firm be hired to lead the downtown plan process. This may take 6-9 months. Fundraising will be an on-going effort for the executive director and board of directors. Consultants should be used For fundraising until such time that full time staff is hired. b) Designate the Downtown Revitalization District as a TIRZ One of the most important tools that can be utilized for downtown Port Arthur re~~talization is tax increment financing (TIr~ or Ta, Increment Reinvestment `Lone (TIR7.), as it is known in Texas. The cite should establish the downtown revitalization district that includes the ~X'estside as a TIRZ pursuant urith the provisions under the Tax Increment Financing Act of Texas2 and utilize the funds collected through the increments for TIRZ unde projects. Per the T1RL legislation, the city will need to prepare a "preliminary- reinvestment zone financing plan" to demonstrate that sufficient increments are expected to be collected as a result of public and private improvements in the area to fund redevelopment projects. The TIRZ boundaries proposed above may need to be altered in conjunction with this preliminary financing plan. The Tax Increment Financing Act requires that a board of directors be appointed b}' the cin- council (or countti~ government) to oversee and manage the TIRL. The board should consist of at least five members (and not more than 15). IEDC recommends that the board of directors of the Downtown PPP that are appointed b}' the city act as the board of directors for the T1RL as well, for better coordination between the Do~Tntown PPP and the TIRZ. Each taxing unit that levies taxes on real property in the zone and helped created the zone (by forgoing increased tax collections to be reimTested into the zone) also appoints one board member. The city may also want to consider appointing one additional member representing the ~~'estside. These include the school district, the ' county, navigation district (the port) and drainage district. The cin~ can engage the city attorney or retain a lawyer to help with the escablishment of the TIRL and its board of directors. For additional details establishing a TIRZ in Texas, please refer to Appendix 3. It is important to note here that TIRL funding may not be a significant source of funding in the initial phases of downtov~~n re~ritalization. It may be several years before sufficient increments can be generated from the revitalization district to make it a ~~iable funding tool. Accordingly, the Downtown PPP, city and PAEDC will most likely need to identify other funds to implement projects in the initial }'ears including the option to issue bonds to cover upfront costs for public sector improvements. Again, professional bond attorneys (whether in-house or hired) should be retained to assist with the process. s Source: Texas Tax Increment Financing Act. Added by Acts 1987, 7ah Leg., ch. 191, Sec. 1, eff. Sep. 1, 1987. ^ IEDC Technical Assistance Report 16 Port Arthur Downtown Revitalization Strategy ' PHYSICAL DEVELOPMENT RECOMMENDATIONS The following are recommendations of projects and activities that should be implemented as part of downtown revitalization. The IEDC team sees the Downtown PPP as taking the lead in these activities. The Downtov~m PPP may want to consider ' parts of these recommendations in the process of developing its mission and continued organizational development. ' c) Develop a Downtown Revita lization Plan One of the first undertakings of the new organization should be to develop a downtown revitalization plan. Port Arthur has d eveloped a number of plans over the years covering ' different neighborhoods. Howeti=er, the moct recent plan ~~-as done. in June ?006 and covered only the ~x`estside. To Requirements for Revitalizing Economically the IEDC team's knowledge, no Distressed Neighborhoods t plans speciticall}= addressing downtown have been developed Strong and Committed Community Leadership in 15-20 }ears. The exodus of businesses and residents from • A clear vision for the future ' downtown and surrounding • Ability to mobilize and hold the community together neighborhoods continued during • Capacity to draw resources and partners in support of the timeframe. the community vision ' • Creativity and resourcefulness to get things done Downtown revitalization efforts also need to be a part of a larger A Structured and Inclusive Community Planning Process ' economic development strate~~ • Defines shared interests for the entire citti~. The • Informs and educates ' petrochemical industry's • Offers alternatives for achieving desired outcomes expansion over the next several • Establishes success measures years will create hundreds of ' highl}= paid, permanent jobs at the Building Community Capacity plants and hundreds more • Recognizes and assembles assets through a multiplier effect. Port • Creates working relationships Arthur should take advantage of • Fosters partnerships this unprecedented economic • Creates implementation entities development opportunity to ' attract potential new residents to Knowing Local Context and Conditions the city. Offering a high quality of • Local market conditions life and good quality education3 is • Neighborhood business strengths & opportunities essential to attract and retain • Understanding local development incentives & programs these high-wage, high-skill .Strategic focus on how to improve the neighborhood workers to Port Arthur. economy 1 A vision and roadmap for Good Relations Between Neighborhood Stakeholders and revitalizing downtown is also External Leadership 3 Poor quality oieducation was cried as one of the maJor reasons for fhe exodus of residents from Port Arthur. While d is absolutely essential to improve the education standards rn Port Arthur, such techniques and methods are beyond the scope of this work. ^ IEDC Technical Assistance Report 17 1 Port Arthur Downtown Revitalization Strategy necessan= to demonstrate to the private sector the city's commitment to downtown and help guide investment decisions. The roadmap should be comprehensive, engage ' residents and businesses from across the city=, and identify specific way=s of engaging the private sector. The Downtown PPP should take the lead on the process, in close partnership with the city and PALDC. The roadmap or downtown re~~talizaaon plan ' also should provide detailed implementation steps and be updated regularly to reflect current realities. Specificall}', the plan should: 1. Outline along-term vision for downtown, goals and objectives, strategies to achieve those objectives, and performance measures. ' 2. Be supported by detailed market analyses for various types of uses. 3. Examine and recommend strategies to redevelop and reuse existing buildings downtown, especiall}= those with historic significance or special architectural ' importance. 4. Explore options and opportunities for fostering green development and smart growth principles to reflect current thinking about urban development. 5. Provide implementation steps to guide the tasks and priorities over the short term (i.e., 2-3 }•ears). Organizations, responsibilities, potential sources of funds and timelines should be assigned to each major task/project. 6. Idendfi= strategies and opportunities to engage the private sector in various do~vntoum projects. ' The focus should he on the recommended Downtown Revitalization District in order to build momentum in this area and target resources consistently. Specific critical components of the downtov~=n plan are discussed briefly below. Inventory Land Parcels and Available Buildings The Downtown PPP should create an im=entor}= of all parcels and properties in the proposed downtown revitalization district as a first step. Information such as the condition of the building including structural strength, presence of pollutants such as asbestos, lead based paint, etc. should be gathered to the extent possible and made readily accessible to all city departments that will be imsolved w7th the rehabilitation process. The inventory should also include information such as: • Location • Ownership status (city-owned, privately owned, or tax delinquent) and contact information about the owner • Dimensions and parcel area (acres) • Built area (square feet) • Appraised value of the property • Available for rent or sale (if applicable) • Current zoning and use ^ IEDC Technical Assistance Report 18 J Port Arthur Downtown Revitalization Strategy Contiguous land parcels that need no (or minor) improvements should be highlighted for potential assemblage opportunities to accommodate the land requirements for larger scale housing, retail and commercial users. At the same time,. properties that have blighting influences should be highlighted for demolition, if such a database does not alread}~ exist with the city. Inventory Funding Sources The Downtown PPP should also develop a list of funding sources available for downtown development, such as ]efferson County, state government, federal government, foundations and corporations. Significant funding opportunities may be available from the federal stimulus package as well. Research on funding resources needs to be accompanied by an understanding of the restricted use of these funds and how they can be used creatively to meet the needs of downtown Port Arthur. This is especially applicable to the stimulus funds, as the guidelines are still being developed and the use of funds remains vague in many cases. The IEDC team has undertaken this research to some extent. The resources listed in the Appendix 4 for downtown development should not be considered to be exhaustive and supplemented with additional research at the local level as well. ' Incentives will most likely need to be pro~~ided to defray the cost of development and rehabilitation in downtown during the initial phases. These incentives can be in the form of subsidies for construction/rehabilitation, tax abatements, etc. to achieve ' financial feasibility for the projects. This may also translate into lower rental rates for housing and commercial establishments thereby attracting people to downtown. Key potential funding sources include: 1. New Markets Tax Credits (NMTC) allocations, which can help reduce a community's reliance on municipal bonds for revitalization. The PAEDC currently works with the National Development Council (NDC) to provide NI~7TC as an incentive for attracting industrial uses to Port Arthur. The Downtown PPP should further utilize this relationship to offer 1V]41TC for downtown district re~~talization projects. Specific uses of NIV7TC to attract retail are discussed later in the report. 2. Build America Bonds for infrastructure improvements. Build America Bonds are taxable general obligation municipal bonds, but are subsidized by the federal government (up to 35% of the interest rate costs) in order to lotver the costs of borrowing by local and state governments. These bonds can be used far necessary capital projects such as work on public buildings, courthouses, schools, roads, transportation infrastructure, government hospitals, public safet}~ facilities and equipment, water and sewer projects, environmental projects, energy projects, governmental housing projects and public utilities. The subsidy is available in 2009 and 2010 only. 3. Enemy E~crency and Conservation Block Grant program through the L).S. Department of Energy, wluch can be used for introduction of energy efficient street lighting systems in downtown business districts as well as the provision of low-interest loans to existing and future commercial property IEDC Technical Assistance Report 19 Port Arthur Downtown Revitalization ~1 i~ u II 1 owners for energy efficient}• upgrades. Port Arthur's allocation is $541,300 and opportunities should be explored to utilize part of this funding within the downtown district. Conduct a Detailed Market Analysis for Downtown Development IEDC recommends that downtown be developed with a mix of uses that would enable residents and businesses to live, work and play in downtown. Therefore, the Downtown PPP needs to conduct detailed market and feasibility analyses to determine potential viable uses. Separate analyses need to be conducted for retail, office and residential uses downtavvn. Considerations for Market Analysis Retail: • Demand -households, employment, tourism, through traffic • Trends -population, households, income, retail sales, development patterns • Visibility, access, travel patterns, traffic counts • Competitive and complementary stores • Anchor tenants and tenant mix • National trends Office: • Demand -employment ~4arket analysis is described as a • Shifts from Class C to Class B to Class A space s six-step process : • Anchor tenants • Anal` sis of Propert}• Space for larger tenants ProductivityT • Competitive space • 1'Iarket Definition National trends • Demand Analysis • Supply Analysis • Comparison of Supph~ & Demand • Development of a Subject Capture Estimate Typically, market analyses are conducted by real estate professionals and developers to evaluate the demand and supply of various uses and estimate the absorption rates for any given development. Such analyses will be helpful for the organization in developing a realistic vision and strategy for downtown development. Develop Strategy for Rehabilitation and Reuse of Existing Buildings Downtown has several properties with historic value and the city and Downtown PPP should explore options for rehabilitating and reusing these buildings. At least one building, the Old Past Office, is on the National Register of Historic Places; effort should be made to rehabilitate and reuse this building, rather than demolish it, if at all possible. The IEDC team noted that the VG~'orld Trade Center and other properties located at or near the comer of Austin Avenue and 5`~ Street may be good candidates for renovation and reuse as offices or residences (please refer to concept map in Section 1~. Another properh• that the tiny has hoped to save is the Sabine Hotel, which has Source: Fanning, Stephen F. Market Analysis for Real Estate: Concepts and Applications in Valuations and Highest and Best Use. (The Appraisal Institute, 2005) ^ IEDC Technical Assistance Report 20 Port Arthur Downtown Revitalization Strategy been vacant for more than 10 years. The team recognizes that the condition of some of these buildings may have deteriorated beyond repair, or that the abatement of materials such as lead paint or asbestos may make rehabilitation prohibitively costly. Even when a determination is made that a btulding can be saved and the cost of ' rehabilitation is nat prohibitive, innovative financing and public sector subsidies likely will be needed to make a project viable. Some of the incentives and funding sources available from the Texas Historical Commtsston are included in Appendix 5. ' Resources also are available from federal agencies such as the U.S. Department of Treasur~•, Department of Interior, Department of Transportation, Department of Housing and Urban Development and Department of Commerce to supplement state and local resources. Programs include Historic Preservation Tax Credits, Transportation Enhancements and grants from HUD and EllA. Further details about each program are provided in Appendix 6. ' Possible uses for most of these buildings include affordable housing, market rate housing for rental or condos, office space as u,~ell as mixed-use with retail. ' Downtown revitalization is aken a long and arduous process. However, many examples exist throughout the country, of communities large and small, that have successfull}7 turned their downtowns around. Two examples have been highlighted in this report - ' Suisun City, California and Greenville, South Carolina. Below are the summaries. For the complete case studies please refer to Appendix 7 and Appendix 8. 1 Suisun City, CaliF., is located in Northern California halfway between San Francisco ac Sacramento. The city has been going through a major redevelopment project since tl early 1990's. Suisun City has been a success story of a cit}' on the brink of disaster visit forward to become one of the most livable communities in California. Throul leadership, determination, visioning and a strong emphasis an results, Suisun Cit}~ is model far haw even the most downtrodden cities can turn their fortunes around. History and Suisun City Downtown The population of Suisun City grew tenfold between the 1970s and early 2000, prima as a bedroom community for San Francisco and Sacramento. Nearly all the gro« however, happened on the edge of the city, while Suisun City Old Tnwn and the c center experienced disinvestment. Oil facilities along the harbor polluted the ground a water and businesses failed on ItTain Street. One neighborhood comprised primarily fourplexes used about half of the city's police resources to fight drug dealers and h crime. The city developed plans for revitalization, but no actions were taken implement the plans. The Turning Point In 1988, the San Francisco Chronicle rated the Bay Area's 98 municipalities for thf quality of life and Suisun City ranked dead last. A graving group of citizens and frustrated City Council, led by Mavar Jim Spering (elected in 1)89), decided th ^ IEDC Technical Assistance Report 21 i~ u II i~ Port Arthur Downtown Revitalization Strategy ething needed to be done. The Mayor took the initiative and the city started creating a new redevelopment plan for Suisun City's Old Town and ~ntown areas. Suisun City began to turn itself around by creating a grand vision of what residents wanted their city to be. Cin- Hall at that time was housed in a trailer, so the first task was to move the City Hall into a new building in the barren and deteriorating downtnurn. The city also focused attention nn the u-aterfront area. A redevelopment agency was set up as a banking mechanism to issue loans for redevelopment projects. The city undertook an extensive public engagement process when developing the vision. Mayor Spering noted the importance that the vision for the redevelopment be the community's, not that of a developer or architect. F.ven when some citizens groups were skeptical, the cit}' focused on developing a strategic, broad vision for the downtown. The city hired an architect of national renown to help develop plans based on the community vision. r'lccording to Mayor Spering the city u-as criticized for selecting an expensive architect to do the design and planning for downtown and accused of not utilizing public funds efficiently. He defends that choice as the price for expertise; the city wanted a very high quality product and was not looking to save money at the most fundamental stages of downtown revitalization. Funding Suisun Cit}' utilized tax increment financing {'ITF) to fund redevelopment projects a: the entire cin~ was designated a redevelopment zone. Establishing a redevelopment zo throughout the city -making the district as large as possible -was the only war to ma the financing work. Using property tax revenues, the city issued X110 million in bonds. The Public Sector Role Tlie cin' tack the lead in the redevelopment process, including carrying most of the associated with various projects. The redevelopment agency was instrun throughout the process by covering the costs of public infrastructure. The cite also fast-tracked certain critical projects -such as restoring an old train station in order to gain public support and show results. A number of these projects wet carried out in reaction to public impatience regarding the slow speed of implementatiot The city was able to execute a large portion of the redevelopment plan within a relative: short span of about Eve years. Hurdles and Challenges • Public Engagement -Public sentiment was one of the biggest challenges through the re~~italization process. A number of citizen groups were not happy that the en city had been designated as a redevelopment zone. In addition, after seeing pl developed in the past but not delivered on, residents and businesses were skeet about the outcome of such a large redevelopment project. It took time to rebuild community's confidence in the city to deliver. Furthermore, one of the first proj~ ^ IEDC Technical Assistance Report 22 Port Arthur Downtown Revitalization Strategy to be implemented was the new City Hall and surrounding area, called City Plaza, and a number of stakeholders objected to locating a public building of such importance in an unsafe part of town. The perseverance of the Mayor and the City Council in implementing the ~~sion helped in the long-term. • Private Sector Involvement -The re~7talization process in Suisun City was heavihr oriented towards the public sector. The private sector was brought in at the ' implementation stage to carry out the plans and designs, which resulted in conflict. 1~Tayor Spering, in hindsight, thinks the city should have engaged the private sector soon after the visioning process was completed to benefit from its resources and ' expertise at an early stage. There was a belief that if the city invested in the public infrastructure, the private sector would jump at emerging development opportunities; however, that did not happen. The city had to spend significant resources to engage the private sector at a late stage. ' Conclusions • vlayor Spering Feels that in order for any project to be successful, three ingredients are essential: ' 1. Strong political leadership -champion(s) for the cause and advocate(s) far the vision; 2. Public support, emanating from pride and the will to see change happen in a ' distressed community; and 3. An experienced architect/developer who can translate the community vision into feasible plans and designs. • The public and private sectors should be engaged in neighborhood revitalization ' from an early stage in order to develop a ~7sion that builds on their combined outlooks and resources. • Revitalization is a difficult process that requires tough decisions. The leadership needs to ensure that stakeholders remain on board and keep the long-term vision in focus. i b li d b l i ng up een rev ta ze y c ean Throughout this process, the entire downtown area has the waterfront, making it accessible and bringing business and activity to the downtown area. Suisun City is a place in which citizens feel pride. Today, the redevelopment process continues with new urork on the City Plaza and the creation of a new, mired-use community. Though the process was difficult, Suisun City now is an outstanding ' example of ho~v a city can turn from the brink of disaster to become a model community. ' Source: Bared on an r.'nten:zew with the, former mayor jrm .Spering. ^ IEDC Technical Assistance Report 23 i~ i~ II G Port Arthur Downtown Revitalization Strategy Greenville, South Carolina, is a city of about 60,000 that had a severely declining downtown despite a growing economy and region. Greenville managed to transform its downtown from its all-time low of abandoned warehouses and empty storefronts during the 196Us and 1970s into a flourishing and nationally recognized downtown center, spurring activity around the clock with offices, residential areas, specialty retail, entertainment, and the arts. 'This success was a result of strategy and dedication by the Cit}•, and thus presents many valuable lessons that can be replicated in other declining downtou>ns across the nation. Secrets to Success Greenville's Economic Development Department played an integral role in the drastic transformation of the city's downtown. Greenville utilized its and the region's economic and physical strengths as critical components of the revitalization process. The city realised that successful projects take a multitude of resources and support; therefore, public/private partnerships were the backbone to ever}- revitalisation initiative. The public sector provided the spark plug, but the private sector etas the engine in Greenville. In 1977, the Citv Council charged ahead full farce in remaking the downtown despite vast public doubt. The city took on this task by investing strategically in properties, combining the best of vehicular and pedestrian design, creating aesthetically pleasing streetscapes, and understanding the need for a differentiated downtown. Common denominators in all revitalization efforts for Greem~ille were and continue to be the strategically focused location and mixed-use nature of the projects. Proof of Success • Greenville Commons was the first anchor and major public/private partnership for the downtown revitalization process. The cinr purchased the land, built the convention center and parking garage, and leased the air rights for the hotel and office biulding to go on the site, leading to a financial participation b}t the city of pearl}- one-third of the entire project cost. • The Peace Center for the Performit2g Arts is a major anchor for Greenville that gives people a reason to came downtown at night and on weekends. A local family contributed a X10 million commitment to start the project. The city used TIF and enunent domain to secure same of the property, and then provided the landscaping and amenities. The cit}• also worked against skeptics to remove a vehicular bridge nearby and replace it atith a pedestrian bridge, reopening the natural waterfalls, river and park that were once hidden. • West End Market is located in aonce-blighted area athere Greenville could not attract private investment. Recognizing the strategic location of this area, the cit}' decided to assume the role of developer itself, taking on the 5nancial risk. In the end, Greenville successfully created a major 45,000 sq. ft. destination utith offices, retail, restaurants, artisans, and a traditional farmer's market, all in a festive and park-like ^ IEDC Technical Assistance Report 24 r 1 Port Arthur Downtown Revitalization Strategy setting out of privately donated, neglected historic buildings. Financing for the project required TIF, a Ht?D Section 108 loan, grants, city general fund dollars, and even the sale of personalized bricks; but in 2005, West End Market was sold to }Meld a net profit to the city to invest in other projects. Polnsett Plaza/Hotel consists of 204 hotel rooms and a 220,000 sq. ft. office building with residential penthouses and 4-4 condominium units housed in renovated historic buildings, including a vacant educational wing of a church. Greenville assisted financially with the project by employing TIF but pla}'ed a more important role in bringing together multiple private partners by becoming the facilitator, construction coordinator, and mediator, holding weekly meetings with the multiple developers and contractors to keep the project on track. West End Baseball Stadium vas built to host Greenville's new baseball team, the Drive. The cin- provided development-ready land for the project and leased the property to the owners of the team. It also helped finance the project using T1F, sale proceeds from the Vest End Market, hospitality funds, and storm water and sewer funds. Greemrille ended up with much more than a baseball stadium; the project also created offices, restaurants, retail and residential condominiums. • RiverPlace is a collection of office buildings, residential condos, restau underground parking, artist studio spaces and an interactive water feature lc along the Reedv River. Greenville overcame many challenges to develop this including substantial river pollution. Public walkways and plazas link to the n Falls Park that was only made possible through the use of eminent domain. Tips for Success • Build anchors -anchors set the tone for future developments • Create a critical mass - prop-ride the variety and stability for tourism a office/residential needs • Be an entrepreneur -understand and appreciate the inherent risks of priv, development • Bring value to the private development -don't just assume that the need is monet~ • Seek creative financing options - be willing to explore all financing opportunities • Commit to writing -clearly define expectations and responsibilities • Set the design standard - in downtou.'ns, the city sets the standard for the puE realm • Integrate with the existing environment -accomplish integration of mixed-i developments «~ith doumtown through design requirements • Little things matter. -landscaping, seating, lighting, etc. provide a backdrop, sense place, and identity- • Plan for people -the physical em-ironment should be designed and programmed encourage its use by people ,Sourrer. Whitworth, Nanc}' P•, "Cit}''s Tools for Downtown Development: Much More than l4onev." Economic Det~elopme~lt America, Fall 2006, IEDC ^ IEDC Technical Assistance Report 25 i~ II 1 Port Arthur Downtown Revitalization Strateg~t Whitworth, Nanc}~ P., and Mare Douglas Neal, "How Greenville, South Carolina, Brought llowntown Back: A Case Study in 30 Years of Successful Public/Private Collaboration." Rea/ Estate Rea-7eau, vol. 37:1 (2008}: 12-13 d) Undertake Aggressive Marketing Efforts One the major objectives of the Doumtown PPP v~~ll be to market downtown Port Arthur for real estate development opportunities, businesses, and cultural/recreational activities on an on-going basis. These efforts should be coordinated v~7th the messages of other partner organizations that market the area such as PAEDC, Chamber of Commerce, Port Arthur Visimrs and Convention }3ureau, and regional players as well. To attract im~estors and developers to downtown, the Downtown PPP should focus initial marketing efforts on the opportunities and incentives available for real estate projects. In the tang-term, the Dournto~vn PPP should supplement these efforts with marketing of events and activities downtown. A comprehensive marketing strategy that targets local and regional markets separately should be prepared. Proactively Counter Public Safety Concerns Downtown PPP will need to counter the public safety concerns associated with downtown as one of its initial tasks. Current businesses in the re~~italization district told the IEDC team that downtown's negative public safety image is based more on perception than reality. As noted above, downtown's crime rate was too low to meet the threshold to become a Weed and Seed site'. The city should launch a campaign to proactivel}~ counter negative public safety perceptions through a variety of avenues such as local media, the police department, forum(s) for Improving Negative Images Marketing messages, slogans and logos can help to reverse negative images of a community. Messages should create new perceptions that will crowd out the old ones. There are two main approaches to improving a negative image. One is to stress the good features of the community in the message. It is essential that the new, positive message be backed by real performance. If the new message promotes an image that does not exist, then no matter how upbeat the marketing message is, the negative image will persist. Another tactic is to make positives out of negatives. This approach acknowledges the negatives of a community but shows them in a more positive light. Improving a negative image will take time and patience. The best way to improve a negative image is to create a new positive image via a tagline or marketing message and stick with it for at least five years. To double the communication power, ask other organizations within the community to also adopt the marketing campaign. For additional information about marketing techniques, and their advantages and disadvantages, refer to Appendix 9. Source: "IEDC's Economic Development Marketing Manual", Chapter 7 -Marketing Tools, p. 56. January 2006 s Weed and Seed is a Department of Justice program to help high-came communities 'weed out' crime and `seed in' opportunities for economic and social growth. ^ IEDC Technical Assistance Report 26 Port Arthur Downtown Revitalization Strategy ' existing businesses to talk about their experiences and encourage people to come downtou=n, etc. Downtown PPP and the city also can work w=ith area churches to spread the message of a safe downtown through their congregations. They should engage other civic and business groups throughout the city and region in getting the message out about downtown safer<=. t Implement an Aggressive Marketing Campaign Given the level of disinvestment that has occurred, it will be important that ' leadership at the highest levels be engaged and spearhead marketing efforts. Accordingly, the mayor should be prepared to assist by providing the charismatic and positive face of Port Arthur's downtown rising from its currently dormant state. ' Comparable examples of ma}=or-as-promoter include Corey Baoker of Newark, NJ; former mayor 14lartin O'i4lalley of Baltimore, ~~ID (raw governor of 1\laryland); and former mayor Anthony ~~=illiams of ~~'ashington, DC. At the same time, the Downtown PPP should undertake an aggressive marketing campaign for downtown. Separate marketing strategies will need to be developed to target the local audience -such as residents, businesses and civic groups within Port ~~rthur -and the regional players. Such atwo-pronged local-regional marketing strategy should be aggressively implemented by Downtown PPP in cooperation with ' PAEDC, the city, Chamber of Commerce, CVB and citizen groups. Acti~~ities that can help with the marketing campaign are: • Conduct tours of rehabilitated buildings during cultural festivals such as Mardi Gras, lttercado Days and other events of local and regional significance • Partner with Lamar State College to include downtown in university tours to potential students, parents, investors, etc. and talk about downtown development plans ' • Showcase plans for future developments in and around downtoa=n at local events • Wine tasting(s) at newly rebuilt housing and retail spaces to attract potential ' tenants and buyers Marketing materials should be prepared to showcase and highlight important aspects of downtown. The inventor= of downtown properties (discussed earlier) will identify developable sites. These sites should be highlighted in marketing brochures and on the Downtown PPP, Citv of Port Arthur and PAEDC u=ebsites including incentives ' available for locating in downtown. Once an inventory of potential development sites and marketing materials promoting those sites have been prepared, Downtown PPP and the city should plan to attend industry conferences such as the International Council of Shopping Centers (ICSC) Texas Conference & Deal lZaking show to market the downtown. ' The next 1CSC show will be held from Na~•ember 2-4, 2009 at the Henry B. Gonzalez Convention Center in San Antonio. Downtou=n district representatives ^ IEDC Technical Assistance Report 27 i~ 1 Port Arthur Downtown Revitalization Strategy should plan to attend that event to acquire familiarity with ICSC as a marketing platform even if Port Arthur district marketing efforts haven't sufficiently coalesced. e) Attract Retail Activity to Downtown The downtown revitalization district and \X-estside lack basic retail services such as grocery stores and drug stores. The lack of retail services in the south side of town hinders efforts to attract (and retain) residents and other needed services to the area. In spite of these challenges, the downtown revitalization district offers a number of assets that the community can build on for .retail attraction. The recently b~ult Boardwalk along the Sabine-Neches Channel, availability of land around the Boardwalk, access to the waterfront and views of the Sabine Lake in the distance (behind Pleasure Island) are all strengths that the cit<• should capitalize on. Focus on Attracting a Variety of Retailers .fin often quoted aphorism in retail development is "retail follows rooftops." ~~ilule it may be difficult to attract afull-scale grocery store to the area at this time without the demographics to justify such an establishment, the Downtown PPP and city should focus efforts on attracting retailers spanning a wide variety of services but within the small to medium size format as the foundation for a retail attraction effort. A drug store, small format grocer or farmer's market operation (10,000 to 15,000 sq. ft.), a dollar store operator (7,000 to 10,000 sq. ft.), and several small format restaurant operations (1,000 to 2,500 sq. ft.) tit in that category. The short term and mid-term goal should be to attract 30,000 sq. ft. of additional retail space to Procter Street and the Boardwalk in these categories i~1 order to jumpstart commercial Site Selection Indicators for Drug Stores development in downtown. • Traffic counts in less-dense areas and From the downtown re~-italization district im-entory of properties (discussed earlier), Port Arthur should identify parcels for land assembl}' encompassing 1.5 to 2.0 acres of land (and larger) at street intersections for potential locations for a chain drug store format. It has been estimated that vacant city blocks encompass approximatel}' 4 acres which would be sufficient for a small strip center or retail cluster comprised of several small shops or restaurant concepts in the 1,500 to 2,500 sq. ft. range - perhaps anchored b}' a drug store or small format grocer. pedestrian counts in higher-density areas. • Counts indicating the size of the elderly and youth population in area. • Number of married couples and households in the area. • Number of drug and nutrition stores in the area within a 20-block radius. • Number of vacant lots and their square footage. • Parking availability in areas with high traffic counts and lower foot counts. • Size and number of lots that may be used for stores with drive-through windows Source: "Retail Challenges in Washington, DC: An Analysis of Six Retail Categories", Neighborhood Info DC website: www.neiQhborhoodinfodc.or~/word/retail- study.doc Accessed April 20, 2009. ^ IEDC Technical Assistance Report 28 Port Arthur Downtown Revitalization Strategy ' The IEDC team is aware of efforts currentl}r underway to attract a drug store in the ~~'estside. Such efforts shottid continue and the city should make it as easy as possible for a business owner to open shop in the area through expedited permitting, r incentives, etc. However, in the event that the drug store is not interested in locating in IX~'estside (land assembly might be a possible hurdle), the city and W'estside stakeholders should offer other sites in or near the downtown development district. The downtown benefits from being centrally located between Lamar State College Port Arthur, lX~'estside and other residential areas to the north. In addition, the downtown has large amounts of vacant land available. Howe~•er, the city may need to ' proti~ide incentives to attract a store to the atea. In order to attract these retail operators to dove*ntown, the city and Downtown PPP should initiate conversations with the private owners of parcels best suited for potential drug store formats to solicit their cooperation in an area retail attraction effort. Incentives available to property owners within the revitalisation district should be higlilighted in order to encourage them to redevelop their properties for productive use. For those interested in selling their holdings, the city urill need to establish a mechanism to acquire and hold such property for potential assemblage t and use in larger scale developments. The IEDC team is aware of efforts by the city to put in place a process to seize propert}' in batches of 50 lots at a time. ~~G'hile not similar to a land bank, another successful strateg}• for land assembl}-, the city believes that this process is well suited to their needs at this time. Funding Downtown PPP should seek to attract N11TC and other economic development capital to establish a fund to defray up to X100 per sq. ft. of the development costs of the first 30,000 sq. ft. of retail in the above-mentioned target categories. This funding should be limited to and dedicated to~vards commercial properties to be built on Procter Street or near the boardwalk. A fund capitalized with ~3 million for this purpose from N~4TC sources would require an allocation of approximately X10.3 million in capital from a single or multiple sources of NhITC funds. Providers and their allocation of Nl~1TC, which work in Texas are included in Appendix 10. Develop Area Adjacent to the Boardwalk as a Destination Plaza Attracting the first investor or developer to downtown ~~ll not be an easy task, whether it is for a drug store, a restaurant, an office complex or a housing ' development. However, the need for all these uses in downtown and surrounding neighborhoods is strong, given the paucity of any kind of activity in the area right now. It will be important to showcase plans to develop other uses in downtown before the first developer starts exploring options for investing in downtown. ' The city should capitalize on the Boardwalk and develop adjacent land as a plaza anchored by a larger-scale development, such as a hotel or destination restaurant, to take advantage of the water ~-iews. C)ther uses ~~~thin the plaza can include play areas (discussed later in the report), condominiums and apartments, small retail shops and ' outdoor recreational areas. Construction of a plaza along the waterfront has been a . IEDC Technical Assistance Report 29 Port Arthur Downtown Revitalization Strategy ' proposal in previous plans as uTell and the IEDC team believes this could be a promising strategy. Hotel Downtown PPP should inten-iew area employers as part of an effort to determine if market support exists for a small hotel concept in downtown. At the same time, ' interest from developers will also need to be assessed. An important opportunity for the latter is to attend the upcoming annual conference of the National Association of Black Hotel Owners, Operators and Developers (NABHOOD) to source potential operators who might be convinced to develop in Port Arthur's downtown. That conference will be held July 22 - 25, 2009 in i~liatru, FL. For mare mfonnation, visit ~vww.nabhood.net. Destination Restaurant Attracting destination restaurants has been a cornerstone of successful strategies far downtown revitalization for a number of communities across the country. A destination restaurant is one that attracts customers from beyond its community, a place that is interesting enough that people will go out of their way to visit it. Destination restaurants are often used as catalysts for downtown development. Crockett Street in Beaumont is an example of this strategy, which was cited positively by many Port Arthur residents in inten~iews ~s~ith the ILDC team. 1'he Dowwntown PPP should put together a list of destination restaurants to be solicited to locate in the downtown. Attention should be focused on restaurants in the quick service and fast-casual sectors as market support ~ti-ill not initially exist for a fine dtrung or family-style restaurant operation. Qwck service and fast casual restaurant concepts with few or no locations in Jefferson County but with small t formats might work in the doamtown trade area. The mayor might write letters to the CEOs of the restaurant operations indicating the desire to bring the retailer to the downtawn and facilitate the decision making by providing economic development incentives. For example, Sally Smith, President & Cl/O of Buffalo Wild Wings, is leading an effort to reach 1,000 units from the current store base of 600 locations in 40 states. Another operator that should be targeted is Rumbi Island Grill - a fast casual concept that plans to enter the Texas market in 2010. The operator hosts a tropical menu theme whale novelty could serve as a magnet for attracting patronage throughout Jefferson County. Another fast casual concept which doesn't seem represented in the area is Boston Market. For restaurant concepts that are franchise-driven, Downtourn PPP should be ' prepared to offer NRITC capital ar other incentives to franchisees or store developers to lower their casts (as discussed earlier) and reduce the perceived risk of ' operating in downtown. Network and Build Relations with Important Plovers in the Industry ' ICSC's Alliance Program is a networking effort that enables municipalities and non- profits to cultivate relationships with the retail real estate industry, i.e. shopping center developers, retail leasing brokers, retailers, etc. The IEDC team recommends ^ IEDC Technical Assistance Report 30 Port Arthur Downtown Revitalization Staate ' that Port Arthur contact ICSC for involvement in any Alliance Program efforts to be conducted in the region and the State. The outreach should be directed to ;1~Is. Cindy Stewart, ICSC's Director of Local Government Relations, who also coordinates ICSC's Underseas=ed L~larkets Task Force (cstewart~~icsc.o~~. Since ills. Stewart serves as ICSC's point of contact with the U.S. Conference of i~4ayors and the National League of Cities, the initial outreach b_t= Port Arthur should be done by the mayor to signal the importance the city places on downtown revitalization and the retail attract,on program uz pamcular. In addition, identify the ICSC Alliance Program State Co-Chairs for Texas and indicate Port Arthur's interest in exploring future involvement in Alliance Program activity to be conducted in the region and the state. ~ Create Housing Opportunities Downtown The proposed downtou=n revitalization district includes housing in the north and northeast parts of the district with small retail stores spread throughout. Structures are mosti}> single-family homes, many in poor condition, and people continue to move from ' the area even year. In cities across the countn~, the long trend of residential flight from dou=ntowns has reversed, and experts agree that attracting people to Gve downtown is keti- to creating vibrant urban areas. In Port Arthur, a mix of affordable and market-rate in-fill housing development in the urban core would provide better-quality homes for many residents and bring the density and activity= that downtown needs to thrive. ' However, housing choices often are highly influenced by school district quality. The IEDC team learned from stakeholder interviews that the poor quality= of education in the Port Arthur school district in recent years has been a major reason for the exodus of residents. New residents to the region avoid moving to Port Arthur because of the school district. This is a major hindrance to city's efforts to attract and retain skilled workers. While issues of school district improvement are beyond the scope of this ' report, Port Arthur's leadership must address this matter at some point or its potential for sustained vitality will be severely curtailed. Create an Infill Housing Strategy for Downtown and the Westside The city=, Dovvntov~=n PI'P and VG'estside stakeholders should work in partnership to create a housing strategy= for these distressed neighborhoods. The IY/ertride Economic Deyelopr~re~rt a~~d Retfitali~atxor~ Report, June 2006 calls for infill housing projects throughout the ~~'estside, identifies specific land parcels for such development (as part of mixed-use projects), and provides recommendations for type and density of housing. The city and Downtown PPP should develop a similar infill housing strategy for the downtown revitalization district (please refer to concept map in Section I`~. The strategy should be a part of the do~cnto~=n development plan and build on the analyses and community input gathered during the process. For example, the ' inventory of land parcels and vacant properties should be utilized to identify potential sites for developing affordable and market-rate housing. . IEDC Technical Assistance Report 31 Port Arthur Downtown Revitalization Strategy ' Lamar State College Port Arthur is in the process of developing a master plan for renovation and expansion of its campus. Providing student housing opportunities in downtown should be a component of the overall housing strategy. Given the depressed nature of the real estate market in central Port Arthur, it will be critical for the city to align its resources to proactively market its vision, plans and ' incentives to attract private investment to downtown. ' Incentives Examples of incentives offered to encourage infill development in distressed communities include: • Access to developable land with clear title and adequate infrastructure. Communities can assemble land, provide environmental clearances (especially in relation to industrial and Brownfield properties), build sidewalks ' and streetlights, etc. • Expedited permitting for site reviews, building re~riews, engineering plans, etc. ' • Waiver of certain development fees by the city/count}. • Financial assistance to potential homebuy-ers in the target area in terms of access to lo~v-interest loans, down payment assistance, etc. Financial ' assistance may also be needed for smaller local developers {e.g., CDCs) that do not have access to large financial pools during predevelopment and construction. Local government can make available a pardon of CDBG or ' HO;t1E funds for predevelopment loans and grants for such non-profit developers. This money can be utilized either to provide funds to the non- profit developers directly or to underwrite potential losses an a loan fund developed by a consortium of financial institutions.' ' g) Improve Quality of Life Good quality of life is crucial to attracting and retaining quality jobs in today's knowledge-based economy. Remnants of a l'Iain Street Program and the city's past efforts to infuse some energy into downtown can be seen in small improvements that have been undertaken over the last few years, including planters along Procter Street (provided by the R4ain Street Program), the Boardwalk and a redeveloped park -The ' People's Park - at the corner of ~~'aco Avenue. However, it is evident that investment in such isolated projects, without accompanying investment in the overall development of downtown, has not borne fruit for the community. ' As part of re~~italization efforts, investment should be made in heautitcation projects and improving qualin° of life. In l7ay, PAEDC got voter approval to use up to X750,000 ' a year for the next three years for downtown beautification and infrastructure projects. ' c The IEDC team is aware of city's eNorts to seize large chunks of property in the downtown and surrounding areas. Phase 11 of that process may look into clearing title to the Land so that rt can be assembled and offered for development. Land banking is another option that the city maybe interested in exploring for land assembly. ' Source: "In-Fill Housing Initiative for Miami-Dade County Distressed Neighborhoods", South Florida Commundy Development ' Coalition website. httn./M~ww.floridacdc.orp/lienslnfiit.html. Accessed April 20th, 2009. . IEDC Technical Assistance Report 32 Port Arthur Downtown Revitalization Strategy ' Investments in infrastructure and beautification are key to making downtown both more functional and attractive, and building confidence among investors, businesses and ' residents that the city is committed to revitalizing the area. Reduce Procter Street to Two Lanes and Provide Sidewalks and Parking ' Procter Street is Port Arthur's "Main Street." The four-lane street was the center of commercial and ci~7c activity through the middle of the 20`~ century, but now is characterized by closed storefronts, broken sidewalks and overall blight. There is ' ven~ little foot or car traffic on the street as well. Streetscape improvements that would begin to remake Procter Street include ' narrowing the vehicular traffic to tu~o lanes, repairing and widening the sidewalks, and creating bays for free parking along the street between Fort V~'orth Avenue and Shreveport Avenue. Landscaping with planters and trees along the sidewalks would ' further enhance the sense of place and encourage apedestrian-friendly environment in downtown. u Focus on Design and Image Main Street Greenville was remade to create apedestrian orientation witho~ sacrificing vehicular traffic. Greenville was not blessed urith an attractive streetscap instead, quiet the opposite. A major thoroughfare, i4'Iain Street had overhead pow lines, tour lanes of moving traffic, parallel parking, and little landscaping. Vvhe department stores and shops lined the streets, the lack of phj-sical amenities did n~ seem to matter -Greenville had people and activity. ~x~'hen the stores left, so did tl people, and the streets and sidewalks suddenly turned into vast wastelands. It w: often said that you could shoot off a cannon on plain Street at night and not hit soul! This was not an image that Greenville wanted to have. Something had to be done, and a plan was bom. Designed 6F Lau-rence Halprin a~ Associates, the streetscape plan condensed the existing \~Iain Street from four lar down to nvo lanes of vehicular traffic u-ith free angled parking. The vast expanse bare pavement made way for trees. The trees, ~chich are now signature element iti4ain Street, made it appealing to pedestrians and also covered up some of t unattractive and vacant buildings. Sidewalks were made extra-u~-ide to provide festive atmosphere and to encourage outside dining and other sidewalk activity. r' that a~as the beginning; setting the stage for future development. Greenville now h an identity as a tree-lined street with welcoming canopy of lush green trees ~ provided cool shad}- spots for outdoor dining during the warm weather, an ideal tt~ is characteristic of South Carolina. Source: V4'lvtworth, Nand P., and i\iary Douglas Neal, "How Greenville, South Carolina, Brought Downtown Back: A Case Study in 30 Years of Successful Public/Private Collaboration." KealEstate Revieu, vol. 3~:1 (2008): 12-13 ^ IEDC Technical Assistance Report 33 Port Arthur Downtown Revitalization Strategy r Initiate a Downtown Beautification Program Similar landscaping and streetscape improvements should be implemented ' throughout downtown. Small investments into such improvements can have a noteworthy impact on the surrounding area and help jumpstart the downtown revitalization process. The beautification program could include a street banner ' program affixed to lampposts in the entire downtown as well as a mural program for the seawall (which would also counter the graffiti on that structural element). Downtown PPP can work in partnership with area schools and Lamar State College to recruit high school and college students studG-ing art to create ideas for a mural program along the seawall. Create Recreational Spaces and Family Amusements as a Catalyst for Downtown Activities for Children and Revitalization Families along the Boardwalk In an effort to make downtown Mansfield, Ohio more livable and attract a mix of Due to the development of a nearby regional mall, the the Downtourn PPP and the uses downtown of Mansfield, Ohio (pop. 50,557), was in a , cite should provide opportunities state of decline. It was hoped that the placement of a for entertainment, recreation and carousel downtown would attract visitors and cultural activities. Several generate economic activity in the area. ' communities around the country, b such as 1ansfield, Ohio (see y Richland Carousel Park opened in 1991, funded sidebar), have revitalized their city, private individual, and corporate contributions. It ' downtowns by making contained the first new, hand-carved carousel to be i h entertainment the focal paint to e nce t built and operated in the United States s attract both residents and tourists 1930's. A number of retail, restaurant, and office ' back to do~Tnto~vn. spaces were then developed in this area of C i l Distr arouse ct. downtown, which was renamed the Despite the blighted condition of BY the end of the decade, this district reached 100 ' the area, the IEDC team saw percent occupancy of its finished downtown space. joggers and parents with strollers walking along Lakeshore Drive; In 1999, 22 new businesses opened downtown, 61 ' people remain attracted to the new jobs were created, $6.2 million was reinvested waterside as a place to recreate. downtown, and over 70,000 square feet of vacant Port Arthur should capitalize on space was filled. The continuing economic success of ' this asset b} creating play areas, the once-blighted Carousel District has helped trict i l di i h and other activities for children ng commerc a s riv downtown reemerge as a t , and led Mansfield to win the 2001 Great American exercise or recreation the l t i i Main Street Award. The carousel now attracts 250,000 ' ose o es c opportun t art of a plaza Boardwalk as riders a year and downtown Mansfield continues to p development (discussed earlier) to prosper. ' attract people and young families Source: Rence, Erika, "Family Amusements as a Catalyst for to the downtown. These ma~• Downtown Revitalization." Lei's Talk Business: Ideas for eventually be supplemented b}' private retail acti~~in• such as ice Expanding Retnii and Services in Your Community, Issue 122 (October 2006) cream parlors, toy shops, or video game parlors. The Museum of the G ulf Coast is not too far from the Ioardwalk and . IEDC Technical Assistance Report 34 i~ II II i~ Port Arthur Downtown Revitalization should be included as part of the strategy for entertainment and marketing in downtown. Develop More Frequent Programming and Events in Downtown Downtown Port Arthur comes alive for a few days during 14ardi Gras, I~iercado Days and other events and festivals of local and regional significance. To generate activity at other times, the Downtown PPP and the city should develop programs and events to attract people to downtown more frequently and more regularly. First Fridays Events such as First Fridays -small community fairs held on the first Friday of the month, aften Featuring music and foal vendors -showcase local retailers and businesses as well as provide an opportunity for local community gatherings. Live performances of dance and music by regional talents and strolling musicians pla}7ng as they walk along prominent streets are often a means to attract residents and families to the event. In Port Arthur, the events should be held on the first Friday of the month from spring through the fall during evenings between 5:30 pm and 8:30 pm along Proctor Street and include the boardwalk area. Successful First Friday events have been initiated in many downtowns across the country including Spokane, ~'A; Knoxville, TN; El Cajon, CA; and Lakeland, FL. First Friday events reportedh~ have also been done in San Antonio and Austin. Farmer's markets are also becoming increasingly popular across the country as they provide fresh, locally grown produce, arts and crafts, and opportunities for people to gather. ' Frequent, regular events in downtown will be an excellent opportunity for the Downtown PPP to engage with community stakeholders, learn about their issues and problems in an informal setting, and educate the public on its current and future downtown revitalization projects. Tours of rehabilitated or newly constructed buildings can also be offered at community fairs and events. ' 1rlarketing is essential to the success of such events. Area churches should be enlisted to promote the events. It may take some time to build up attendance and participation by residents and businesses. Once the Ftrst 1~nday concept has built up momentum in the community, Downtown PPP should launch a ~rebsite for promoting it and include the best images of downtown: the boardwalk, photos of the finest homes along the waterfront, Lamar State College, the museum, etc. The ' website should include photos of singles, couples and families enjo}7ng themselves during l~•fardi Gras, First Friday events, etc. The DowntouTn PPP and the city will need to be patient and persistent in connnwng to program and strongly market the e~~ents. Improve Sig naae Downtown and Create a Wayfinding System As the am ount of activin~ and investment increases downtown, it will become ' essential to efficiently manage traffic, both vehicular and pedestrian. Signage will need to be improved in order to direct people to dawntown and destination ^ IEDC Technical Assistance Report 35 1 Port Arthur Downtown Revitalization Strategy t attractions. Initiall}•, the Downtown PPP and the city should communicate with the Texas DOT regarding the need to install a sign along U.S. Highway 69 indicating the exit to downtown. Similar signs should be installed along State Highway 87 (Gulfuray ' Drive) and on Alartin Luther King Jr. Bridge. Once redevelopment activity has started, appropriate signage will need to be designed and installed throughout downtown to direct people to places of interest in downtown and surrounding vicinity. ^ IEDC Technical Assistance Report 36 u Port Arthur Downtown Revitalization Strategy IV. Summary and Conclusions ' Downtown Port Arthur has a lot of potential. The recommendations provided throughout this report provide a platform from which to regenerate a successful and vibrant downtown. Leadership and long term vision from committed citizens and organizations is needed to ' ensure the sustainability of these revitalization efforts. The following table summarizes the various recommendations in the pre~zous sections to help the Downtown PPP, City of Port r~rthur and Pr1EDC in decision making. The table is organized into four quadrants created b}' two axes: priority in downtown revitalization efforts and resources needed for the implementation of the recommendations. The recommendations in the lower right hand box are the "low hanging fruit" -those recommendations that can be implemented with relative ease and minimal planning with minimal resources but will have a big impact on downtown development. The recommendations in the upper right hand box are those that need careful planning and significant resources; however, they are integral to ensure downtoaTn's continued development and sustained prosperih~ in the long term. Downtown leadership should also carefully consider the recommendations mentioned on the left hand columns. Even though these are lower priority items in the immediate future, these recommendations will help build a firm foundation for future projects in downtown. L Figure 5: Categorization of Rec Lower Priority and High Resources • Designate the Downtown Revitalization District as a TIRZ • Develop Strategy for Rehabilitation & Reuse of Existing Buildings • Create an Infill Housing Strategy . Improve 5ignage and Create Wayfinding System ommendations High Priority and High Resources • Establish a Downtown Revitalization Organization • Develop a Downtown Revitalization Plan • Conduct a Detailed Market Analysis for Downtown Development • Implement an Aggressive Marketing Campaign . Develop Strategy to Attract Variety of Retailers • Develop Area Adjacent to Boardwalk as Destination N Plaza 3 ,°~ • Reduce Proctor Street to 2 Lanes d ~ Priority ~ Lower Priority and Low Resources ~ High Priority and Low Resources • Inventory Funding Sources • Inventory Land Parcels and Available Buildings • Proactively Counter Public Safety Concerns • Network & Build Relations with Important Players in Retail Industry • Initiate Downtown Beautification Program • Create Recreational Spaces & Activities for Children along Boardwalk • Develop Frequent Programming & Events for downtown ^ IEDC Technical Assistance Report 37 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ li• ~ ~ ~ ~ ~ ~ ~ Port Arthur Downtown Revitalization Strategy .~ 0~ ! ~ ~U~® ®~ ~'1(: ~IQD ®~~~~~~' ~~®®® ~L~®® ~ ~„ ® CID® ID BOUTIQUE®~ ~~ ~~ ~~ ®I ~I ~I r~ DESTINATION RESTAURANT Po acs t ~.~~~ thu~c° , `~' e ~a s 1 I ®® ~~• ~ ~®~] ~® ©~ ' 1 ~ ~ ~ ~ J ~~~~ ~ INFILL RESIDENTIAL J ~~. ~uuiu~:~i~~. ®~~ ®~II ~' IEDC Technical Assistance Report 3$ Figure 6: Downtown Concept Plan, Port Arthur 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Port Arthur Downtown Revitalization Appendix 1: Selected Photographs from IEDC Team Site Yisit ^ IEDC Technical Assistance Report 40 View of the Boardu=alk from the Street Port Arthur Downtown Revitalization Strategy _ _ `"~ 'r ~~ _ -. ~;i View ~~'est from the access and Adjacent Land ^ IEDC Technical Assistance Report 41 View of Sabine Neches Channel from the Boardwalk Port Arthur Downtown Revitalization Strategy ^ IEDC Technical Assistance Report 42 i~iuseum of the Gulf Coast Port Arthur Downtown Revitalization R v R L p t 1~ 1 1 p l l'~ 111 - - - --= - - - -- ~~ _'; ~r .~ Re~•italized Park in the middle c,f ahandnnment in do~i-nto~-n ^ IEDC Technical Assistance Report 43 World Trade Center Building w - 1 z. yy. ..~.. ~; _ .:~ •~ ~ "" :~~~ ~ _ ~~v _.~ . --- .. - -- . ~ - .- ~ .. Port Arthur Downtown Revitalization Strategy Hotel Sahine 1 '. ~': R`ig' a. 2 •~.~ ~~ ~~ ~~~ ~ a~~~~,' ^ IEDC Technical Assistance Report 44 _ ~~ ~~ ~_ -..,.. ~~ `~ ~,- ~ _ __ ~._ Same Historic Elements in dow~ntcm-n ^ IEDC Technical Assistance Report 45 Port Arthur Downtown Revitalization Strategy Port Arthur Downtown Revitalization t . IEDC Technical Assistance Report 46 l,rochett Street t~,ntrance